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Nakheel graft accused to face modified charges

DUBAI — Four Australians, comprising three ex-managers of Nakheel Waterfront and the manager of a private investment firm, two of them absconders, faced modified charges in the Court of First Instance on Thursday.

In the new prosecution arraignment sheet, the former executive manager, 43 and identified as MJ; the former legal manager, 44 and identified as AJ; and the ex-commercial operation manager of the Waterfront, MR who is 40, are accused of striking an under-the-table deal with AR, manager of an Australia-based firm in 2007 resulting in a loss of Dh142.153 million for Nakheel. The loss occurred due to the difference in prices as documented in the report of the Financial Control Department of the Ruler’s Court.

MR is believed to have drafted a memorandum with false data and information devaluing the price of a square foot by Dh65 and fixing the down-payment at five per cent instead of 15 per cent.

AJ approved the legal documents and drafted the contracts with the said low price without referring back for the Nakheel administration’s approval.

In one of the cases, AJ allegedly made Dh44.1m in illegal profits by managing and disposing a plot in the Arab City project in the Waterfront, owned by Nakheel to a private firm run by the complainant, an Australian architect.

AR posed as a mediator between Nakeel’s accused and the complainant. AR fooled the complainant by saying that the plot was unavailable for sale directly from Nakheel and that he had to purchase it from AR claiming that he had booked it and had rights over it, which was untrue.

He told the complainant that he had to pay Dh44.1m as cession rights.

MJ, AJ and MR backed AR’s claims thus abusing their posts at the Waterfront, and the complainant was forced to pay Dh44.1m.

MJ received Dh22.1m as his share, out of the 44.1m collected as illegal commission from the complainant.

The three former Waterfront managers had access to confidential information pertaining to the said plot and used that information to make illegal profits. They allegedly manipulated the complainant and offered extra facilities and advantages on the plot.

MJ, AJ, and MR are accused of illegal profiteering, breach of confidential information, fraud and causing intentional damage to the public interest, as Nakheel is a public entity. AR is accused of aiding and abetting in those crimes.

The complainant, a 54-year-old architect, said in the investigation that he is the project manager of a private firm located on Shaikh Zayed Road and his firm was swindled of Dh44.1m after purchasing the plot. AR had made contact with him and claimed he had booked it. He was asked to pay the sum to AR for his cession rights.

A police lieutenant said they began their investigation after being informed by the Financial Control Department about a suspicious land sale deal between Nakheel and a private firm, the complainant’s. The deal was suspicious as it had prices lower than Nakheel’s official listed ones.

mary@khaleejtimes.com