New graft case against Deyaar’s former CEO

DUBAI - A former CEO of Deyaar faced a new graft charge in the Court of First Instance on Wednesday as he is accused of causing the property developer Dh 1.2 million worth of financial and investment damages.

By Marie Nammour

Published: Thu 22 Mar 2012, 4:23 PM

Last updated: Tue 7 Apr 2015, 11:38 AM

The American, 48, and his German successor, aged 44, are both accused of misusing public funds for the benefit of others.

According to the court records, the American abused his powers to lease a building for investment while knowing that the investment deal would not bring in any profits to Deyaar, according to an economic study carried out by audit experts in the property developer.

The German defendant is accused of abusing his powers by renewing the lease agreement to the benefit of a third party, causing a loss of Dh3.2 million.

He allegedly renewed the agreement while he was aware that there would be losses expected from such a deal. The deal was worth Dh10 million at both times. The two former CEOs did not take into consideration the remarkable decrease in the value of the real estate prices while okaying the lease deal.

An auditor at the Financial Control Department at the Ruler’s Court told the prosecutor that he was assigned to audit the accounts of Deyaar. While revising the financial documents and listening to the statements of senior officials at Deyaar, the Egyptian auditor spotted financial irregularities.

The auditor said that he learnt about a leasing agreement made by the American former CEO who was managing the company’s funds. The deal was worth Dh10 million and it ran from January 2008 to February 2009.

The American struck the deal even while knowing that it would not be of any use, and would, in fact, cause losses to the property developer, according to a study carried by in-house auditors.

Because of the deal, Deyaar incurred losses to the tune of Dh1.2 million and the third party, from whom the building was leased, financially profited.

His successor to the post of CEO, the German, renewed the deal even though it was clear from a study carried out in advance that it would cause losses. The renewed deal was also worth Dh10 million, and it ran from March 2009 till February 2010 and Deyaar incurred financial losses worthy million so dirhams. The total losses were worth Dh12.4 million, the auditor said.

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