x Abu Dhabi, UAESaturday 20 January 2018

Deyaar chiefs on corruption count

Former Deyaar CEO and his colleague deny corruption charges.

DUBAI // Two former chief executives of Deyaar Development have denied deliberately using public funds to overpay a former governor of Dubai's financial free zone to use one of his properties.

ZS, 48, an American Lebanese, and his successor MG, 44, a German, overpaid Dh4.5 million to the former chief of the Dubai International Financial Centre to use the building, between January 15, 2008 and February 28, 2010, the Criminal Court of First Instance heard.

The court heard the two men rented the building in Al Nahda for a total of Dh10 million, despite studies by the developer that concluded it would not be profitable.

Prosecutors said the Emirati landlord OB was overpaid Dh1.2m during ZS's tenure, and Dh3.3m while MGwas in charge.

Internal audit reports from the financial control department of the Ruler's Court found the two men had abused their positions at Deyaar and were responsible for the financial irregularities.

The reports said the two chiefs had discarded the studies that said renting the property would not be profitable.

The two men denied charges of corruption. The next hearing is scheduled for April 4.