x Abu Dhabi, UAESunday 23 July 2017

Deyaar embezzlement trial pauses to examine new documents

A major fraud trial adjourns for a month so lawyers for the former chairman of Deyaar can examine newly disclosed documents.

DUBAI // A major fraud trial yesterday adjourned for a month so lawyers for the former chairman of Deyaar can examine newly disclosed documents. MK, who besides being chairman of the property company is a former government minister, stands accused of breach of trust, bribery and embezzlement of up to Dh112.2 million. Charged alongside him are the former Deyaar executive director ZS and the executive JD.

The court requested on July 20 that Dubai's audit department hand over documents that allegedly outline fraud and further infractions by the executives. The trial stems from the handling of Churchill Towers, a property project of which MK was the full owner. Deyaar built the project and resold its units. Prosecutors and the financial audit department said MK had abused his position as chairman of Deyaar and conspired to avoid payments worth Dh25.7 million for property brokerage commissions, staff incentives and advertising costs.

It is also alleged that ZS, in his capacity as executive director, helped reduce the amounts by using a Deyaar-owned property brokerage, which largely helped in selling Churchill Towers. Mohammed Mustafa Hussain, the Dubai official who handed over the audit documents, said unit transfer and resale fees were collected in the interest of MK as the owner of the project rather than Deyaar's brokerage.

The Dubai Criminal Court of First Instance is to reconvene on October 26 for the cross-examination of Mr Hussain.

amustafa@thenational.ae