UAE opens investigation into native property developer over alleged monetary violations

DUBAI, Oct 24 (Reuters) – The United Arab Emirates lawyer normal has introduced an investigation into allegations of economic violations by the chairman and different officers of Dubai-based developer Union Properties, (UPRO.DU), state information company WAM reported on Sunday.

The federal investigation was launched following a grievance by the inventory market regulator, WAM quoted Lawyer Common Hamad Saif Al Shamsi as saying in a press release. The WAM report was additionally posted on the Public Prosecution’s Twitter account.

WAM stated the grievance outlined alledged violations by Union Properties Chairman Khalifa Hassan Al Hammadi “together with a few of its officers”, together with promoting an actual property asset under its actual worth and hiding the title of the beneficiary, in addition to “forging paperwork and different violations that induced hurt to the corporate and its stockholders”.

Hammadi couldn’t instantly be reached for remark. Representatives for Union Properties and for the stockmarket regulator, the Securities and Commodities Authority, didn’t instantly reply to Reuters’ requests for remark.

The lawyer normal ordered the seizure of the property of a few of these being investigated and they’re barred from leaving the nation, WAM stated, with out figuring out the people.

The Dubai bourse suspended buying and selling on Sunday in Union Properties shares after they’d plunged 9% to 0.25 dirhams ($0.07). The bourse stated this was due to an incoming disclosure from the corporate.

Union Properties’ disclosure, which didn’t point out a federal investigation, stated the disclosure was filed in response to what it described as information being circulated on social media.

It stated that asset gross sales are carried out primarily based on a technique accredited by the board and govt administration “by means of following strict procedures when it comes to the honest analysis of its belongings”.

It stated that in March 2020 the corporate offered a residential constructing to Amna Al Hammadi for 30 million dirhams ($8.2 million), including she isn’t thought-about a “associated occasion”.

The constructing was offered after learning affords and in mild of commitments to pay down firm debt, it stated.

The constructing was purchased for 36 million dirhams in 1997 and registered within the agency’s books for 49.5 million dirhams in 2019, in keeping with the disclosure.

In a separate assertion earlier on Sunday, Union Properties stated {that a} subsidiary was searching for 3.5 billion dirhams ($953 million) in arbitration claims with out figuring out the subsidiary, who the claims have been in opposition to or why.

Union Properties, which began working in 1987, has a market cap of simply over 1 billion dirhams, in keeping with a Reuters calculation.

($1 = 3.6728 UAE dirham)

Reporting by Maher Chmaytelli and Alexander Cornwell
Modifying by Nadine Awadalla, Ghaida Ghantous and Frances Kerry

Our Requirements: The Thomson Reuters Belief Rules.

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