Dubai's Attorney General Refers 'Deyaar' Corruption Case to Court
High-profile corruption charges filed against former financial minister and executives of Deyaar Development
Dubai's Attorney General Issam Issa Al Humaidan has referred individuals involved in financial corruption cases related to Deyaar Development, a major real estate company in the emirate, to Dubai Criminal Court.
This follows extensive investigations initiated in May of the previous year, involving complex accounting expertise, numerous incidents, and a large number of defendants, according to a press release from the Attorney General's office.
Among the accused facing trial are former Minister of State for Financial Affairs Mohamed Khalfan Kharbash, who also served as Chairman of Deyaar's Board of Directors.
Kharbash is charged with embezzling public funds, harming state interests, and facilitating the embezzlement of company funds by the former CEO, Zack Shahin, an American of Lebanese descent.
Shahin faces similar charges, including receiving bribes.
John Dacuna, an Indian national who is currently at large, has also been referred to the court in connection with the case that has sparked widespread local debate.
Experts have noted the case as evidence of Dubai's robust anti-corruption stance.
Prosecutor Humaidan stated that two additional cases have emerged from the primary investigation.
One of these cases, which involves former Deyaar board member Saad Mohamed Sharif Abdul Razzaq and businessman Ismail Aqeel Al Janahi, both Emiratis, has been referred to the Dubai Criminal Court on charges of bribery.
Abdul Razzaq previously left Dubai Islamic Bank, which owns 40% of Deyaar's shares, where he served as CEO, to join Dubai Investment Corporation in 2007.
The second case, forwarded to Dubai's Misdemeanor Court, encompasses nine defendants, including Zack Shahin, Jansian Krishna Kumar of MasterBrand Middle East Ltd., Charbel Patros Hasrouni from Deyaar Brokerage, Argentinian Jose Mibar, Palestinian Hesham Said Khattab, Indian Goldie Om Prakash, Pakistani Hamid Shabbir Bin Khawaja, and others.
They face charges such as breach of trust, fraud, forgery, and disclosure of secrets.
Humaidan underscored that the referral followed thorough investigations conducted by the Dubai Prosecution, led by Assistant Prosecutor Khalid Al Zarouni, under the oversight of the Attorney General's technical office.
This investigation required several months to complete due to the necessity of comprehensive accounting expertise, concluding with identified corruption incidents involving tens of millions of dirhams.
He affirmed that the public prosecution provided all defendants with full legal defense rights as per the law and is preparing for trial announcements.
A financial audit report submitted to the public prosecution in November last year indicated that Zack Shahin misappropriated over 31 million dirhams.
The total funds misappropriated by Shahin and his associates are estimated to exceed 98 million dirhams, with funds transferred between accounts in countries including Switzerland, Lebanon, and the United States.
The American publication Financial Times had previously reported findings from the Dubai government’s financial audit department implicating Kharbash and Shahin in mutual benefits.
The report noted a 33.4 million dirham payment made by Kharbash to Deyaar in March of the previous year, after the audit revealed the costs of two properties owned by Kharbash, the Churchill and Safe Towers, were covered by Deyaar.
The company's board has since established committees for financial, technical, and bonus auditing to oversee the company’s contracts and employee bonuses while banning future transactions with companies affiliated with its board members.
In related commentary, Ali Shihabi, CEO of investment bank Rasameel, told Agence France-Presse that the corruption trials represent a positive step for Dubai's government, demonstrating a commitment to addressing the issue despite any negative publicity that may result.
He pointed out that classical approaches in the Arab world often involve covering up or ignoring such issues, whereas active anti-corruption efforts will enhance Dubai's business environment.
This follows extensive investigations initiated in May of the previous year, involving complex accounting expertise, numerous incidents, and a large number of defendants, according to a press release from the Attorney General's office.
Among the accused facing trial are former Minister of State for Financial Affairs Mohamed Khalfan Kharbash, who also served as Chairman of Deyaar's Board of Directors.
Kharbash is charged with embezzling public funds, harming state interests, and facilitating the embezzlement of company funds by the former CEO, Zack Shahin, an American of Lebanese descent.
Shahin faces similar charges, including receiving bribes.
John Dacuna, an Indian national who is currently at large, has also been referred to the court in connection with the case that has sparked widespread local debate.
Experts have noted the case as evidence of Dubai's robust anti-corruption stance.
Prosecutor Humaidan stated that two additional cases have emerged from the primary investigation.
One of these cases, which involves former Deyaar board member Saad Mohamed Sharif Abdul Razzaq and businessman Ismail Aqeel Al Janahi, both Emiratis, has been referred to the Dubai Criminal Court on charges of bribery.
Abdul Razzaq previously left Dubai Islamic Bank, which owns 40% of Deyaar's shares, where he served as CEO, to join Dubai Investment Corporation in 2007.
The second case, forwarded to Dubai's Misdemeanor Court, encompasses nine defendants, including Zack Shahin, Jansian Krishna Kumar of MasterBrand Middle East Ltd., Charbel Patros Hasrouni from Deyaar Brokerage, Argentinian Jose Mibar, Palestinian Hesham Said Khattab, Indian Goldie Om Prakash, Pakistani Hamid Shabbir Bin Khawaja, and others.
They face charges such as breach of trust, fraud, forgery, and disclosure of secrets.
Humaidan underscored that the referral followed thorough investigations conducted by the Dubai Prosecution, led by Assistant Prosecutor Khalid Al Zarouni, under the oversight of the Attorney General's technical office.
This investigation required several months to complete due to the necessity of comprehensive accounting expertise, concluding with identified corruption incidents involving tens of millions of dirhams.
He affirmed that the public prosecution provided all defendants with full legal defense rights as per the law and is preparing for trial announcements.
A financial audit report submitted to the public prosecution in November last year indicated that Zack Shahin misappropriated over 31 million dirhams.
The total funds misappropriated by Shahin and his associates are estimated to exceed 98 million dirhams, with funds transferred between accounts in countries including Switzerland, Lebanon, and the United States.
The American publication Financial Times had previously reported findings from the Dubai government’s financial audit department implicating Kharbash and Shahin in mutual benefits.
The report noted a 33.4 million dirham payment made by Kharbash to Deyaar in March of the previous year, after the audit revealed the costs of two properties owned by Kharbash, the Churchill and Safe Towers, were covered by Deyaar.
The company's board has since established committees for financial, technical, and bonus auditing to oversee the company’s contracts and employee bonuses while banning future transactions with companies affiliated with its board members.
In related commentary, Ali Shihabi, CEO of investment bank Rasameel, told Agence France-Presse that the corruption trials represent a positive step for Dubai's government, demonstrating a commitment to addressing the issue despite any negative publicity that may result.
He pointed out that classical approaches in the Arab world often involve covering up or ignoring such issues, whereas active anti-corruption efforts will enhance Dubai's business environment.
