Deyaar's ex-CEO wins his first acquittal in a series of five court cases
Dubai: Deyaar's American ex-CEO, Z.S., has won his first acquittal in a series of five corruption and graft cases since his referral to court in 2008.
The 48-year-old American-Lebanese was cleared on Wednesday of causing a deliberate loss in public funds [as Dubai Islamic Bank owns 41 per cent in Deyaar's shares] worth Dh1.2 million.
Since April 2008, Z.S. has been standing trial before the Dubai Court of First Instance, facing five different corruption cases in which he is charged of committing financial irregularities worth more than Dh350 million in total.
Presiding judge Maher Salama Al Mahdi acquitted Z.S. and his successor as CEO of Deyaar, M.G.,a German, of deliberately causing losses of Dh4.5 million [Dh1.2 million and Dh3.3 million respectively] between January 2008 and February 2010, during their tenures as CEO for the property company.
Citing lack of corroborated evidence, the suspects were cleared of causing an intentional loss of public funds while renting a building from a former top official.
The two former CEOs pleaded not guilty and firmly refuted the accusation that they rented a residential building owned by DIFC's former governor, Emirati O.B., in Al Nahda between January 15, 2008 and February 28, 2010.
This is the first ruling in five cases against Z.S.
The latter's lawyer Hassan Juma Al Raisi asked the court to clear his client of causing loss in public funds, considering that Deyaar is a private company.
"The financial report that was submitted to court lacked solid proof. It contained many discrepancies and was full of unfounded and groundless details. The report does not meet with international standards to prepare such financial reports," argued advocate Al Raisi.
M.G.'s lawyer Abdul Hamid Mahdi countered all the accusations brought against his client.
"My client did not abuse his duties. He did not commit any financial irregularity or inflict any sort of loss to Deyaar," argued advocate Mahdi.
Lawyers Al Raisi and Mahdi contended before the court that their clients did not abuse their power [as CEO] and acted according to the responsibilities and duties granted to them.
Records said Z.S. rented the building for Dh10 million although a feasibility study conducted at the time concluded it would not bring Deyaar any profit.
Z.S. is said to have rented the building anyway, giving O.B. a profit of Dh1.2 million.
When M.G. succeeded Z.S. as Deyaar's CEO, prosecutors said the German renewed the building's rent for the same price, which gave O.B. a profit of Dh3.3 million, again causing Deyaar to lose money.
"The court has cleared the two suspects and dismissed the civil lawsuit lodged by the claimants in civil right [Deyaar's legal representative]," said presiding judge Al Mahdi.
The primary judgement remains subject to appeal within 15 days.
© Gulf News 2013
