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Deyaar graft case to be heard afresh

Dubai: The graft case involving the former CEO of Deyaar and seven other suspects charged with defrauding the company of nearly Dh240 million is back to square one following three years of court proceedings.

The high-profile corruption case that came to light in 2008 was on Wednesday referred back to Dubai Public Prosecution by the Dubai Misdemeanours Court citing jurisdictional matters.

"The court has decided to refer the case to the Public Prosecution as the case does not fall under its jurisdiction, it being a crime and not a misdemeanour. Prosecutors will decide on the upcoming and proper procedures," said Presiding Judge Rifaat Mahmoud Tulba Othman after yesterday's ruling.

Following a total of three years [since April 2008] of continuous litigation and court proceedings, prosecutors will soon decide on the next step and when to refer the case to the Dubai Court of First Instance.

Various charges

Prosecutors had framed various charges against Deyaar's ex-CEO, American client, Z.S., 45, and seven executives — four Indians, an Argentinean, a Lebanese a Palestinian and a Pakistani —such as defrauding, swindling, embezzling, breach of trust, forgery and using fake documents, divulging Deyaar's secrets and aiding and abetting a crime. According to prosecution records, the alleged financial irregularities added up to losses of more than Dh240 million for the company.

Advocate Ali Abdullah Al Shamsi, Z.S.'s lawyer, contended before the Misdemeanours Court when he presented his closing argument: "We ask the court to refer this case to the Court of First Instance, where my client is being prosecuted in another Deyaar graft case.

This is not a misdemeanour and both cases should be clubbed together. When prosecutors opened up this case against Z.S., it was based on the charge of unlawfully obtaining Dh360,000. Z.S. was acting as per the powers granted to him by Deyaar's board. The director of Financial Control Department (FCD) of the Ruler's Court submitted a void and baseless financial report in this case."

Al Shamsi also argued that Z.S. was appointed as CEO by Deyaar's board members. "He acted as per the authority granted to him by the board… until today no one has objected to those powers or authority. We stress that Z.S. is innocent and didn't cause any loss or take any money," he said.

All the defendants pleaded not guilty.

Deyaar's advocate Essam Al Tamimi asked the court to implicate the defendants for causing a massive loss to the company.

Following Wednesday's decision, the suspects who are on bail will remain so. Meanwhile, those in custody will continue to remain in custody.


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