Defrauders stole millions from Nakheel – faces justice

Troubled real estate Nakheel was badly hit by the economic crash. Not only was the industry in general stricken, Nakheel with all its extravagant projects was even worse haunted.

The cut became even deeper since the company was cheated of millions by executives.

The main suspects are now facing justice. One of them is the 43-years-old former manager director of Nakheel’s Waterfront project. The other is the 44-year-old former commercial manager. The two Australians are accused of buying land way below market price. Two of their countrymen, the former legal manager and another businessman at Waterfront, is thought to have assisted them. They cannot be heard, as they are on the run.

According to the prosecution witness Mohammed Mustafa Hussein, auditor at the Financial Audit Department of the Dubai Rulers’ Court, the former CEO received AED22.1 million. In total, Waterfront lost AED44.1 million, when the accused bought plots for AED120 per square feet, when the market price was AED185.

To hide the tracks, the legal manager arranged for the money to be paid via lawyers so it would not show up in the defendants’ accounts.
When planned, the Waterfront was Nakheel’s largest project and the backbone of the company’s financial strategy. Only the land valued at AED7.6 billion.
“It was the crème-de-la-creme project,” said one former chief executive of a property developer with a project at the site to TheNational. “The mock-up plan for the Waterfront was like the Manhattan on the sea.”