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Dubai vows corruption crackdown

Aug 17 2008 20:51

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Dubai - The government of Dubai, which is vying to become a global financial hub, vowed on Sunday to crack down on corruption amid a series of probes into alleged financial irregularities in high-profile firms.

"The government will continue to have a strict stance against all aspects of corruption and will take legal measures against violators" in both the public and private sectors, public prosecutor Issam al-Humaidan said in a statement.

"There are strict directives to have zero-tolerance towards all aspects of corruption, bribery and taking advantage of official positions," he said.

Humaidan said the results of investigations of employees being questioned over alleged irregularities will be announced once they are complete.

His warning was backed by the chairperson of leading real estate company Deyaar Development, whose former chief executive is being held for alleged fraud.

"Ensuring the upholding of the very highest standards of corporate governance and transparency is critical to the long-term success of both companies and governments," Nasser bin Hassan al-Shaikh said after his company announced the appointment of a new chief executive.

According to press reports, several people are being detained or questioned over alleged fraud in a number of major companies. They include leading government-controlled property developer Nakheel, one of whose executives is held on bribery charges.

Nakheel is building three palm tree-shaped artificial islands, as well as "The World" - a cluster of some 300 islands looking like a blurred vision of the planet's nations - off Dubai's coast.

Others reported under arrest include two senior executives being questioned over alleged financial irregularities at their former employer, housing finance provider Tamweel. Dubai Islamic Bank, which partly owns Deyaar, is also under investigation.

Dubai, which is part of the United Arab Emirates, is a booming business and tourism hub in the oil-rich Gulf region, and is seen as on course to rival major financial centres such as London and New York.

 
 
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