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Tamweel’s former CEO Adel Al Shirawi faces investigation for fraud

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UPDATES: 22 August 2008

Point of Essence:

  • Tamweel denies it being implicated under the current probe against its ex-CEO, Adel Al Shirawi.
  • This statement was issued amid concerns that the probe may be linked to the company which has seen its share prices plummeted ever since the investigation started. The company clarified that the probe was related to the personal wrongdoings of the former CEO.

Tamweel says it’s not under investigation

Thursday, 21 August 2008 12:07

Dubai-based Islamic mortgage lender Tamweel is not under investigation by the public prosecution as part of a corruption probe in which two former senior executives have been detain, the company said on Thursday.

Tamweel said that “to the best of the company’s knowledge” the investigation was limited to former chief executive Adel Al Shirawi and former head of investments Feras Kalthoum and will not hit profits.

“…there is no investigation into the activities of the company itself.” Tamweel said in a statement.
“Tamweel therefore reassures its shareholders and sukuk holders that this investigation has no negative impact on the profitability and operations of the company.”

The statement follows comments made by chief financial officer Gaurav Agarwal earlier in the week in which he said Tamweel has no plans to change its 2008 profit growth target and that the possibility that an investigation could lead to cash losses was “remote”.

Since the beginning of the month Tamweel’s share price has dropped 22.63 percent to Wednesday’s close.

The investigation into Al Shirawi and Kalthoum was first made public last week by Tamweel’s biggest shareholder Istithmar World, part of a broad corruption crackdown by the Dubai government.

State-owned developer Nakheel has also confirmed one of its staff is being questioned by police and analysts say there is more to come.

Investigations are also underway into former employees of Deyaar Development, including its former CEO, and Dubai Islamic Bank.


Points of Essence:

  • Tamweel’s ex-CEO, Adel Al Shirawi, is currently probed for embezzlement and mistrust by the Dubai investigating authority.
  • While this will cause a dent to the reputation of the companies associated with the CEO, it does affect the well being of the overall Islamic finance industry.

Al Shirawi stepped down as head of Tamweel in January and is currently vice chairman of Istithmar World.

Dubai: Tamweel PJSC’s former chief executive officer Adel Al Shirawi is under investigation by the Dubai public prosecution’s office for alleged financial wrongdoing, a Dubai police official said.

Al Shirawi is being investigated for alleged embezzlement and mistrust while employed by the UAE’s biggest mortgage provider, Saleh Hamed, head of Bur Dubai police, said in a telephone interview on Thursday.

The Dubai police have referred the case to the emirate’s public prosecution office, he said.

Al Shirawi was arrested on Aug. 5 as part of the investigation, Zawya Dow Jones reported, citing an unidentified Dubai police official.

Baqir Abdulwahid, head of public relations at the public prosecution office, declined to comment when called by Bloomberg.

Al Shirawi, who stepped down as head of Tamweel in January and is currently vice chairman of Dubai’s state-owned Istithmar World PJSC, didn’t answer his mobile phone when called by Bloomberg. Tamweel officials declined to comment when called by Bloomberg on Thursday.

Tamweel closed today 5.7 per cent lower at 6.11 dirhams. Its shares are down 26 per cent since July 23 after rumors of an investigation into the company began.

Telephone receptionists at Istithmar World, a Dubai government-owned investment company that manages more than $10 billion, were unable to find a company spokesman to comment when called by Bloomberg on Thursday.



Written by Suapi Shaffaii

August 21, 2008 at 3:30 am

Posted in Financial Crime

Tagged with , ,

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