Deyaar fraud trial delayed again

A major fraud case involving the chief executive of the Dubai-based property company is again postponed after the chief witness fails to appear at a court hearing.

DUBAI // A major fraud case involving the chief executive of a Dubai-based property company was postponed again today after the chief witness failed to appear at a court hearing. The director of the Financial Audit Department at the Ruler's Office, Mohammed Mustafa Hussien, whose testimony has been requested in at least three major fraud cases, failed to appear at the hearing of former Deyaar chief executive Z S and former federal minister M K. It was the third time Mr Hussien has not appeared at hearings involving Deyaar. The case was postponed to October 13. A note was handed to the presiding judge El Saeed Bargouth by a member of the Financial Audit Department informing the court of Mr Hussien's absence.

Mr Hussien was assigned to investigate corruption at Deyaar. His testimony is crucial to the defence team in order to challenge his findings. The case file shows that M K is accused of using his previous position as Minister of Finance and Industry to illegally facilitate payments from Deyaar to Z S. Z S, an American citizen of Lebanese descent, pleaded not guilty in June to accepting bribes in exchange for granting discounts and other facilities worth Dh56.6 million (US$15.4m) to M K. He is charged with receiving in bribes six million Deyaar shares, 380,000 Tamweel shares, 145,000 Dubai Islamic Bank (DIB) shares, and Dh17.9m from M K to allow him to take possession of money belonging to Deyaar and DIB. The case is one of several before the Dubai Court this year that have resulted from Mr Hussien's investigation into corporate corruption in Dubai. The inquiry was commissioned by Sheikh Mohammed bin Rashid, Ruler of Dubai and Vice President of the UAE. The inquiry has revealed frauds worth over 3.6 billion dirhams, implicating employees at Nakheel, Deyaar, Sama Dubai, Mizin, Dubai Industrial City, Tatweer and others. M K posted Dh2m bail in this case, while Z S is still in custody on different charges. A third defendant, J D, has absconded. [e-mail]