Auditor affirms Nakheel violations

Mohammed Mustafa Hussein of the Financial Audit Department (FAD) at the Dubai Ruler's Office testified in court yesterday over the corruption case against developer Nakheel.

Hussein compiled an audit report into the case, which involves six defendants including four who are at large, and relates to alleged offences concerning The World project. He testified in the Dubai Criminal Court that he was assigned to audit Nakheel's accounts, and the audit showed financial violations committed by defendant SR, 31, a sales consultant.

He said SR received an estimated Dh21.9 million in his and his father's accounts at Emirates Bank from the project's clients, in return for selling islands by violating the duties of his job.

The clients did not sign sale contracts, which exempted them from payment commitments or delay fines and allowed them to resell the islands at higher prices, violating the policy of the project's management which forbids resales.

Hussein said a second defendant, Canadian LS, 59, a partner at Group Seven Properties, purchased some islands and transferred money to SR. The fugitive defendants are Briton BS, Bangladeshi AS, Russian SM and SR's father.

LS and BS are said to have offered SR a Dh16.7m bribe in return for enabling them to reserve a number of islands. The court adjourned the case to March 7.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.