Corruption ‘high in Dubai state firms’
Dubai, December 31, 2009
Corruption at Dubai's state-linked companies is unusually high, the Gulf Arab emirate's police chief said on Thursday, but tough new penalties introduced this week could help curb fraud.
Dubai, which shocked global markets in November with a request to delay $26 billion in debts linked to flagship firm Dubai World, has ramped up an anti-corruption drive in recent weeks.
The emirate has seen a series of high-profile fraud cases since 2008 involving top executives at government-related firms like property developers Nakheel and Dubai Properties, as well as Dubai Islamic Bank.
'Something is unusual. We have never had such a high number of people involved in corruption,' Dhahi Khalfan Tamim, who also heads the Dubai government's budget committee, told Reuters.
A law issued on Tuesday has the power to impose prison terms of up to 20 years on offenders as the emirate tightens financial rules in the wake of its debt crisis.
Tamim said the law 'comes at the right timing (because) for the first time there is a problem of a significant size.'
Under the law -- which allows for offenders to be set free upon repayment of any stolen funds, or settlement agreements -- authorities can reclaim stolen public or private funds.
Tamim said police had drawn 'a list of more than 60 people mainly from government-linked companies' who are under investigation, adding no-one on the list was from a government department.
'The chaos is all coming from the (government-linked) companies,' he added.
'We never had this conduct in our government practices. But at government-linked companies, some thought there was a large scope for a lack of discipline.'
The law is among a raft of measures introduced by Dubai, one of seven emirates in the UAE, in the wake of its debt bombshell on November 25.
Earlier this month, Dubai issued a law requiring government departments to transfer their revenues to the treasury in a bid to regulate government departments' public spending and control government revenues. – Reuters
More Government & Laws Stories
- Six army officers killed in Egypt attack
- Bahrain-Taiwan bilateral trade hits $345m
- Bahrain 'loses $2.63m over human error'
- UAE summons Iraq envoy over Saudi comments
- Saudi clarifies no pilgrimage ban on Brotherhood
- Bahraini minister evades municipal council quizzing
- Terrorists' identities in Bahrain exposed
- Arab nations called to fight terror in unity
- Bahrain to fast-tract action against terror suspects
- Alwaleed Foundation backs women in politics
- Saudi 'must name and shame corrupt officials'
- Libya's ousted PM Zeidan on way to Europe
- Bahrain set for big eGovernment forum
- Ministries under fire for 'failing to implement projects'
- Bahrain finance minister to be quizzed over irregularities
- 2 policemen hurt in Eker blast
- Libyan parliament sacks PM after tanker escape
- Saudi sets up panel on labour disputes
- Sand-dredging bill is hit by funding row
- Saudi rejects Maliki's charges on funding militants
- Independent foreign policy non-negotiable: Qatar
- Bahrain to crack down on bogus investments
- Bahrain urged to set up national plan to fight cyber crime
- Galfar ex-CEO gets 15 years' jail over bribes
- New law on family violence on the way in Bahrain
- Four blast suspects are remanded in Bahrain
- Bahrain to step up war on terror
- Norton Rose Fulbright moves London head to Dubai
- DSG ‘ready to implement Smart Dubai Strategy’
- Iraqi women protest new draft law