UAE prosecutors launch major investigation into Union Properties

The UAE's Federal Public Funds Prosecution is investigating claims of financial violations committed by senior officials at Dubai-based real estate developer Union Properties.

According to news agency WAM, the investigation is based on complaints lodged by the Securities and Commodities Authority on allegations of irregularities committed by Khalifa Hassan Al Hammadi, the company's Chairman of the Board of Directors, along with other senior executives.

The allegations include the firm selling property at less than its real value and hiding the name of the beneficiary of the sale, as well as forging documents, in addition to other violations that caused harm to the company and its stockholders.

These also include breaches of accounting standards systems to hide the loss incurred by the company by changing the classification of its investments.

The UAE's Attorney-General, Dr. Hamad Saif Al Shamsi said that the Public Prosecution has started investigation procedures under his direct supervision.

He also ordered the seizure of the property of some of the accused and barred them from leaving the country.

Al Shamsi added that the legal status of the contracts, deals, and procedures initiated by the accused is being investigated and subjected to a technical examination by specialists with the participation of the Securities and Commodities Authority and law enforcement authorities.

He stressed that whoever attempts to defraud or tamper with the national economy will be firmly dealt with.

"The Public Prosecution will continue to inform the public in accordance with the course of the investigation and the interest of the investigation process," the Attorney General concluded.