DUBAI, Oct 24 (Reuters) – The United Arab Emirates legal professional basic 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 criticism by the inventory market regulator, WAM quoted Legal professional Basic Hamad Saif Al Shamsi as saying in a press release. The WAM report was additionally posted on the Public Prosecution’s Twitter account.
WAM mentioned the criticism 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 identify 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 legal professional basic ordered the seizure of the property of a few of these being investigated and they’re barred from leaving the nation, WAM mentioned, with out figuring out the people.
The Dubai bourse suspended buying and selling on Sunday in Union Properties shares after that they had plunged 9% to 0.25 dirhams ($0.07). The bourse mentioned this was due to an incoming disclosure from the corporate.
Union Properties’ disclosure, which didn’t point out a federal investigation, mentioned the disclosure was filed in response to what it described as information being circulated on social media.
It mentioned that asset gross sales are carried out primarily based on a strategy authorized by the board and govt administration “by way of following strict procedures by way of the honest analysis of its belongings”.
It mentioned that in March 2020 the corporate bought a residential constructing to Amna Al Hammadi for 30 million dirhams ($8.2 million), including she is just not thought-about a “associated social gathering”.
The constructing was bought after learning provides and in mild of commitments to pay down firm debt, it mentioned.
The constructing was purchased for 36 million dirhams in 1997 and registered within the agency’s books for 49.5 million dirhams in 2019, based on the disclosure.
In a separate assertion earlier on Sunday, Union Properties mentioned {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 towards or why.
Union Properties, which began working in 1987, has a market cap of simply over 1 billion dirhams, based on 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 Trust Principles.
