CEO of Dubai property developer Deyaar detained

Dubai: Zack Shahin, the former CEO of the Dubai-based and publicly listed Deyaar Development, was arrested almost three weeks ago for allegedly embezzling more than Dh100 million, Gulf News has learnt. Dubai Attorney General Essam Eisa Al Humaidan confirmed to Gulf News on Thursday the detention of the US citizen Shahin, who was denied bail on Tuesday almost three weeks following his arrest. « The Appeal Court denied him bail on April 15 after the Court of First Instance approved bail. But we appealed against the bail order. He has been detained for almost three weeks. » Deyaar Development Chairman Nasser Al Shaikh issued a statement confirming that « an investigation is being conducted for certain questionable measures taken by previous CEO Zack Shahin. » He added: « In the interest of the company and its shareholders, the matter has been referred to the Public Prosecutor. Investigation « The company is fully cooperating and providing the necessary support in facilitating this investigation, » he said. However, it is unclear why the company had failed to notify the market of the developments and kept shareholders in the dark for as long as three weeks. Confidentiality The company should also have notified the stock market as soon as its CEO was forced to resign last month. Deyaar on March 29 announced a restructuring of the board – at about the same time that Shahin appears to have been detained. No charges have been pressed against Shahin yet, the Attorney General said. Assistant chief prosecutor Khaled Al Zarouni is in charge of the case. Sources close to the case told Gulf News that the money involved is believed to be Dh120 million. But officials declined to disclose any details. « We have only one file concerning the suspect whose questioning over alleged embezzlement charges continues. We will wait to conclude the investigations and finalise the financial reports to see if he should be charged or not, » Al Humaidan told Gulf News. He refused to give specific details, maintaining the investigation’s confidentiality. Gulf News learnt that Shahin has denied his alleged embezzlement charges and is maintaining his innocence. Meanwhile, Deyaar’s share value on the Dubai Financial Market declined 0.85 per cent to Dh2.33 on the news. Source: Agencies