Dubai: Two former Deyaar chief executives on Wednesday denied intentionally causing a loss of public funds to the tune of Dh4.5 million while renting a building from a former top official.
The Public Funds Prosecution said the Dh4.5 million loss was intentionally caused by 48-year-old American-Lebanese Z.S. and his successor, 44-year-old German, M.G., during their subsequent terms as CEOs between January 2008 and February 2010.
Chief Prosecutor Esmail Ali Madani, head of the Public Funds Prosecution, sought the toughest punishment applicable against the two for causing a deliberate loss of public funds. Dubai Islamic Bank owns 41 per cent of Deyaar's shares.
Both men pleaded not guilty as they defended themselves before Presiding Judge Maha Salama Al Mahdi.
Adjournment
Defence lawyers asked for an adjournment to review the file case. Presiding Judge Al Mahdi adjourned the case to April 4.
According to the arraignment sheet, Z.S. and M.G. rented a residential building owned by the DIFC's former governor and Emirati, O.B., in Al Nahda area between January 15, 2008 and February 28, 2010.
Z.S. rented the building for Dh10 million, thus prejudicing Deyaar of Dh1.2 million, which turned out to be profit for O.B.
Prosecutors said M.G. renewed the building's rent for a similar price (Dh10 million) and brought around Dh3.3 million profit to O.B.
Prosecution records said M.G. renewed the rent despite being aware that Deyaar had incurred a Dh1.2 million loss the year before.
