Deyaar board will meet tomorrow on CEO issue

Dubai: The board of directors of Dubai-listed property developer Deyaar will meet on Monday to take stock of the situation arising out of the resignation of the company's former chief executive officer Zack Shahin, who is under investigation in an alleged case of embezzlement.

The meeting will also discuss the resignation of two other members of the board and their replacement, Deyaar has informed the Dubai Financial Market (DFM).

Sources told Gulf News on Thursday that Shahin was held three weeks ago and the money involved in the alleged fraud was Dh120 million.

Deyaar chairman Nasser Al Shaikh said in a statement the investigation by Dubai authorities is being conducted for "certain questionable measures" taken by Shahin. The company has not disclosed specific details of the case.

Al Shaikh said Deyaar is cooperating with the authorities and providing the necessary support in facilitating the investigation.

It has named Adnan Tareen, head of finance, as acting chief executive officer. Al Shaikh said the developments will not have an impact on the company's profitability.

Deyaar, which reported a profit of Dh535 million in 2007, is due to announce its first-quarter financial results soon.