The construction consultancy Sweett Group has announced that it is pulling out of the Middle East market after admitting to a bribery offence that was committed in the region.
The company, which employs 90 staff at offices in Dubai, Abu Dhabi, Muscat and Riyadh, said in a statement to the London Stock Exchange that it “has decided to exit the region and is reviewing its options”. It did not indicate whether this would be by way of a sale of the business or its closure, stating only that it would “provide a further update in due course”.
It blamed challenging trading conditions and a falling order book for the withdrawal.
The statement also said that it had admitted to an offence under the UK’s Bribery Act as part of a continuing investigation by the country’s Serious Fraud Office (SFO).
The investigation followed an article in The Wall Street Journal in June 2013, which claimed that a Dubai-based former director had solicited a bribe from an architecture firm in return for work on a $100 million hospital in Morocco that was being funded by a UAE charitable foundation.
The article said that the payment would be made to an official within the foundation.
Sweett Group launched an internal investigation one month later but closed it in January last year, stating that although investigators were not able to speak to the former employee, its directors concluded the allegation was “not proven”. It subsequently announced in July last year that the SFO had launched a formal investigation, with which it was cooperating.
In its announcement yesterday, the company said that it had admitted to a charge of “failing to prevent an associated person bribing another to obtain or retain business for the company”.
Sweett said: “Subsequent prosecution is expected, with the likely outcome of a fine, the quantum of which cannot be ascertained at the present time.”
The offence did not prevent it from bidding for public sector contracts in the US or the UK.
Sweett Group also declared a loss of £500,000 (Dh2.7m) for the six months to September 30, despite a 9 per cent year on year increase in revenue to £30.2m. Its Middle East arm declared an operating loss of £800,000 as revenue dropped by 21 per cent to £2.3m.
The company, which sold its Asia -Pacific and India business in October, now plans to focus on the UK, Europe and North America.
“Today’s announcement brings closure on the Middle East legacy issues a step closer, allowing the group to progress unencumbered in the future. This is an important next step in the strategic turnaround of the business,” said Douglas McCormick, the chief executive.
Sweett Group’s shares had dropped by 10.8 per cent to 18.5 UK pence by yesterday afternoon.
Andy Brown, an analyst at Sanlam Securities, said that Sweett Group “has had a lot to contend with” recently.
Alongside the bribery investigation, it had replaced its finance director, chairman and chief executive.
He said: “They don’t believe they have the scale there to make a real difference.
“These are huge markets. I think you need to have a meaningful presence to perform properly there and I sense with Sweett that they have looked at it and thought their opportunities and resources are better focused on the core UK market, and looking to develop North America.
“Clearly, the bribery thing is unhelpful, and that might stand in the way of them announcing a quick disposal but we’re still waiting for further clarity on that.”
mfahy@thenational.ae
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
COMPANY%20PROFILE%20
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Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
COMPANY%20PROFILE
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RESULT
Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’
UAE currency: the story behind the money in your pockets
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
Company%20Profile
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The%20specs
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A%20Round%20of%20Applause%20
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Bahrain%20GP
%3Cp%3EFriday%20qualifying%3A%207pm%20(8pm%20UAE)%3C%2Fp%3E%0A%3Cp%3ESaturday%20race%3A%207pm%20(UAE)%3C%2Fp%3E%0A%3Cp%3ETV%3A%20BeIN%20Sports%3C%2Fp%3E%0A
Company%20Profile
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Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
Company%20Profile
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Race card:
6.30pm: Maiden; Dh165,000; 2,000m
7.05pm: Handicap; Dh165,000; 2,200m
7.40pm: Conditions; Dh240,000; 1,600m
8.15pm: Handicap; Dh190,000; 2,000m
8.50pm: The Garhoud Sprint Listed; Dh265,000; 1,200m
9.25pm: Handicap; Dh170,000; 1,600m
10pm: Handicap; Dh190,000; 1,400m
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Klipit%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Venkat%20Reddy%2C%20Mohammed%20Al%20Bulooki%2C%20Bilal%20Merchant%2C%20Asif%20Ahmed%2C%20Ovais%20Merchant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Digital%20receipts%2C%20finance%2C%20blockchain%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%244%20million%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Privately%2Fself-funded%3C%2Fp%3E%0A