NEWS FROM THE UAE
SOURCE : THE NATIONAL
Dubai sets top priority as war on corruption
DUBAI - AUG 18: The investigation has received widespread publicity and the shares of companies where questioned executives have worked have fallen sharply.
On the heels of criminal investigations into two senior businessmen in Dubai, the Public Prosecutor’s Office said that “fighting corruption is at the top of the [Dubai] Government’s priorities”.
The unusual public statement, released through the media office of Dubai’s Ruler, was the first formal acknowledgement that the emirate’s authorities are conducting a series of investigations aimed at alleged white-collar financial improprieties.
“Any employee exploiting his position to make illegal profits will not have immunity,” the prosecutor said. “The strictness with which some violations that emerged in the recent past were dealt with confirms the Government’s commitment to maintaining the highest global standards in fighting corruption and enhancing its achievements in the economic, financial and legislative fields.”
The statement came just days after it was revealed that two businessmen – Adel al Shirawi, the vice chairman of Istithmar World and former chief executive of Tamweel, and Walid al Jaziri, the general manager of sales at Nakheel – were being questioned on allegations of financial irregularities. The investigation has received widespread publicity and the shares of companies where questioned executives have worked have fallen sharply.
“The Government will continue to have a strict stance against all aspects of corruption and will take legal measures against violators,” said the statement, which was distributed by the media office of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai. “There will be no tolerance shown to anybody who tries to exploit his position to make illegal profits.”
The Government of Dubai’s investigation into corruption first emerged publicly in April and has revolved around some of the biggest corporate names in the city, although all of the companies say the investigations concern alleged improprieties by individuals, not corporate behaviour.
Zack Shahin, the former chief executive of Deyaar Development, was arrested in April on charges of fraud. The investigation was then expanded to include Dubai Islamic Bank and other senior businessmen were arrested.
Mr Shahin has maintained his innocence. Mr Shirawi and Mr Jaziri have not been available for comment.
While the arrests have been widely reported, prosecutors have released no details or evidence supporting allegations of improprieties against any of those arrested or questioned. The Public Prosecutor’s Office said the results of the “ongoing investigation” would be announced when they were complete.
“The Dubai Government follows a transparent and clear policy on such issues,” the statement said. “There are strict directives to have zero-tolerance towards all aspects of corruption, bribing and taking advantage of officials’ positions.”
Nasser bin Hassan al Shaikh, the chairman of Deyaar Development and Amlak Finance, said he offered his “complete commitment” to the highest standards of corporate governance, which he characterised as “central to Dubai’s enduring legislative and economic success story”.
Official acknowledgement of the white-collar investigations comes as shadows fall over the local property market.
A report from Morgan Stanley this month forecast that property prices in Dubai could decline as much as 10 per cent by 2010 as a flood of new apartments come onto the market. The shares of property companies have been particularly hard hit by a recent decline in regional stock markets.
Meanwhile, companies such as Emaar, Nakheel and Union Properties have started imposing restrictions on resales of apartments, aiming to dampen speculative activity. Marwan bin Ghalita, the chief executive of Dubai’s Real Estate Regulatory Authority, also said he was looking at ways to curb unhealthy speculation.
Traffic police staff arrested for fraud
ABU DHABI - AUG 18: A sergeant with the Abu Dhabi Police Traffic and Licensing Department (TLD) has been arrested after police uncovered a Dh13m (US$3.5m) luxury car scam.
The officer is facing corruption charges after someone fraudulently altered the ownership certificates for four BMWs and attempted to alter the ownership of another 13 vehicles. Police said the man intended to sell the cars abroad.
Gen Maktoum al Sharaifi, the chief of the Criminal Investigation Department (CID), said that the sergeant, identified as MX, 33, was arrested along with a former TLD employee, OG, 40, after CID officers received a tip that the ownership certificate for a rental car had been illegally transferred to OG’s wife.
In a statement released yesterday, the Ministry of the Interior said OG rented the vehicles through a company he owned. MX would then access TLD files and secretly alter the ownership information.
Investigators recovered one 2008 model BMW at the Sharjah Port as it was being prepared to be shipped out of the country. Another three cars were found elsewhere.
Police are still looking for the remaining 13 cars. In a bid to mask his part in the thefts, MX gained the trust of fellow employees at the TLD and used their identifications and passwords to log in to the system while they were attending prayers or were away from work, the statement said. The Interior Minister’s office said that cases of corruption within the ministry were taken very seriously and that any staff member who committed crimes or abused their position would be prosecuted to the fullest extent of the law, regardless of their job.
Three killed in Ajman villa blaze
AJMAN - AUG 18: A massive fire swept through a five-room villa crammed with more than 40 sleeping bachelors early yesterday morning, killing three and leaving four others badly injured.
Authorities did not release the names of the dead, but said they were Indian.
One worker among those who managed to escape said the fire started in the middle of the night when everyone in the house was asleep.
“I was awakened by alarms and people crying for help,” he said. “The electricity had gone off and the room was pitch black. I woke up my brother and we both ran out.”
The fire left dozens of workers who lived in the villa – seven to 10 of them occupied each room – homeless.
Another resident said he did not know who had died and who was in hospital.
“When the police came they took all the people, the bodies and those who were still alive,” he said.
“And since then no one has known the dead and injured. But all the seven people in that room were taken.”
Col Abdullah Halloob, the head of Ajman Civil Defence in Karama, where the villa is located, said the fire call came in at 3am.
Firemen and members of Ajman’s rescue team rushed to the scene.
The dead and injured were taken to Sheikh Khalifa Hospital.
“We managed to contain the fire to a few rooms where it had started and preserved the property and lives of other bachelors in another room,” said Col Halloob.
Witnesses provided conflicting versions of events, suggesting the fire could have spread in an adjacent room where some of the men had cooked chicken over an open flame the night before.
It could also have been caused by an overheated air conditioning unit.
“Some have told us that the fire started from the air conditioner, that by the time they noticed it had busted, [it was] filling the whole room with fire and black smoke,” he said.
The air conditioner was located on the door to the room, making it a struggle for the men to get to get out, said Col Halloob.
“Those who failed died,” he said.
He said it was possible the air conditioner may have overheated, especially since the bachelors confirmed the unit had been working non-stop for more than two days.
“You know they work in different places,” he said.
“And when someone is at work, others are at home and they all want to use the AC day and night.”
Every summer there are a number of fires caused by air conditioners, said Col Halloob, though yesterday’s was the first he had seen that claimed lives.
He cautioned all tenants to avoid overuse of air conditioning units.
Police cordoned off the area around the villa late into the night for their investigation.
The tenants were in violation of the emirate’s occupancy rules, although it is the owners who will be prosecuted, said an officer on the scene.
The rules forbid bachelors from living in residential villas, let alone in such large numbers.
The survivors will be forced to find new accommodation in special, bachelor-designated areas, said the officer.
Transformer fire stalls work at world’s tallest building in Dubai
Dubai - AUG 18: Work on the Burj Dubai, the world’s tallest building, was interrupted yesterday after a nearby power unit supplying it with electricity caught fire.
Clouds of smoke billowed from the site after a transformer belonging to Dubai Electricity and Water Authority (Dewa) went up in flames at about 10am. Dubai Civil Defence officials said firemen had it quickly under control.
Construction workers were seen queuing up to take buses home. “We were told to leave and there will be no work today,” said one worker.
Emaar, the developer behind Burj Dubai, said a transformer supplying electricity to the area had caught fire.
“We can confirm there was a fire within the construction site of the Downtown Burj Dubai area due to a temporary Dewa transformer catching fire,” said a spokesman.
“The transformer provided power to the surrounding construction area.
“The Emaar emergency personnel and the Dubai Civil Defence team arrived quickly to the scene and took control of the situation. There have been no injuries and no damage to property within the area.”
He added: “Workers within the fire-affected area have been released for the day. All areas will function as normal as of tomorrow. Emaar has several safety initiatives and monitoring mechanisms in place to ensure the safety of personnel and property during construction.”
Dewa confirmed there was a fire in their unit near Burj Dubai, which had resulted in the power supply in the area being cut off. “Presently, there is no electricity in the area,” a spokesman said.
“Our engineers are trying to detect the problem and analyse what exactly happened.”
The fire confused many onlookers and passers-by, as the smoke appeared to be coming from the Burj Dubai itself. “The smoke could be seen all along Sheikh Zayed road,” said a passing motorist. “It appeared to be a big fire.”