UAE lawyers welcome move

Dubai: UAE lawyers are welcoming the move by Dubai to crack down on financial corruption in the government and private sectors. But they say that the process should not stop until corruption is rooted out at all levels.

The media office for His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued a strongly-worded statement on Sunday, promising to deal harshly with any officials accused of taking payoffs in deals or those who exploit their positions for illegal financial gain.

Abdul Hamid Al Kumaiti of Al Kumaiti Advocates said the crackdown was no surprise because there had been talk of it recently, adding that it started a stage where every entity could come under scrutiny.

"Twenty to 25 per cent of the cost of government projects globally is believed to go to payoffs. This is prevalent in the UAE too," he said.

Al Kumaiti said that under-the-table payoffs to get business deals approved had become so prevalent in the UAE that they were now considered a business norm. "Companies would either have to pay or withdraw their bids for contracts," he said.

He blamed the phenomenon on multiple positions held by some officials in various government sectors, and he also cited the lack of a law forcing them to disclose their assets.

Asked if high-level corruption in government entities was a new phenomenon, Al Kumaiti said that the statement amounted to an admission of the existence of financial corruption in Dubai, "not an announcement about a [recent] discovery of financial corruption."

Monitoring mechanism

He called for the setting up of a mechanism to monitor corruption and called for a law requiring high-ranking officials to disclose their assets, and be held accountable for corruption.

"I brought this up with an official at a forum recently but my question was totally ignored," he said.

UAE lawyer Yousuf Hammad said that all cases should be treated individually, but he nonetheless hailed the crackdown by the government. He noted, however, that requiring all officials to disclose their assets would amount to suspecting each of wrongdoing, which wasn't the case.

"Potential investors often come asking us if there are any effective anti-corruption laws," Hammad said. "I tell them there are, but they haven't been [enforced]. The problem is that businessmen who deal with those asking for bribes feel pressured to pay and don't notify the authorities."