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Nakheel employee investigated

DUBAI - Nakheel Properties, builder of Dubai's Palm Islands, said on Friday one of its employees is under investigation on suspicion of bribe-taking in the latest in a series of graft probes in the Gulf business hub.

It comes a day after a probe surfaced involving former employees of mortgage lender Tamweel and months after investigations began into alleged irregularities by executives at Dubai Islamic Bank and its affiliate Deyaar.

"As a result of this internal audit process, the company can confirm that a member of staff is being interviewed by the authorities," Nakheel said in a statement, without naming the employee.

"The allegation of financial irregularities is in relation to the acceptance of sums paid to an employee by third parties."

London-based magazine MEED said on Friday that a criminal case was brought against a senior Nakheel executive this month for alleged financial irregularities that could add up to over Dh3 billion ($816.8 million), a figure which the firm disputed.

"The company can confirm that no embezzlement has taken place within Nakheel and the figure of Dh3 billion quoted by MEED is categorically incorrect," Nakheel said.

Dubai Public Prosecution was closed on Friday and a court official did not answer his mobile phone.

Nakheel CEO Chris O'Donnell declined to comment on the case when contacted by Reuters.

Standard Chartered warned last month Dubai's property market was showing signs of overheating as speculators inflate prices of unfinished properties. It said Dubai should weed out short term buyers by setting capital gains tax, or risk a correction.