A top accountancy firm's corporate fraud investigations across the country have doubled in the past year as more companies seek to uncover the financial misdeeds of the boom years.
Contractors trying to bribe developers to win building projects and bankers giving bad investment advice were common examples of alleged fraud, said Tareq Haddad, a partner of risk services at PricewaterhouseCoopers.
However, it was only now that such bad practices were coming to light after investigation.
"The downturn prompted more focus on fraud within all sectors," said Mr Haddad.
The Government has already moved to root out fraud and bribery with tighter laws and prosecutions of high-profile senior executives and officials.
Governments around the world are taking steps to weed out fraud. Now, it seems the private sector is taking similar action to scrutinise costs. Property and other deals done without shareholder approval were uncovered at the Dubai jewellery retailer Damas International. Mr Haddad, whose company was hired by Damas to investigate the deals, said PwC was also working on investigations of a similar nature.
Property, financial services and health care were among the sectors most exposed, he said.
"The nature of the property industry makes it more susceptible to fraud than other industries," he said. "You have big projects, there can be some subjectivity about how projects are executed and in many cases inconsistent levels of control about projects."
So-called "kickbacks", in which contractors offered cash bribes to developers to win projects, and the delivery of inferior projects were typical instances of fraud, said Mr Haddad.
A greater focus on closer control of costs and projects during the downturn had exposed more cases of corruption.
PwC has advised judges at Abu Dhabi courts on a criminal and a civil case involving construction firms. It signed an advisory agreement with the Abu Dhabi Judicial Department in June.
Increased pressure from shareholders of investment banks to examine poor financial performance related to the downturn also led to the discovery of fraudulent transactions, often from before the crisis.
Foreign investors also view economies with strong anti-corruption legislation more favourably.
"In general, there are more cases coming up and there is more political will to investigate," said Omnia Hussein, a member of Transparency International's secretariat in the MENA region. "At the same time, there is a sense that not enough is happening."
tarnold@thenational.ae
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
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Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
The Bio
Ram Buxani earned a salary of 125 rupees per month in 1959
Indian currency was then legal tender in the Trucial States.
He received the wages plus food, accommodation, a haircut and cinema ticket twice a month and actuals for shaving and laundry expenses
Buxani followed in his father’s footsteps when he applied for a job overseas
His father Jivat Ram worked in general merchandize store in Gibraltar and the Canary Islands in the early 1930s
Buxani grew the UAE business over several sectors from retail to financial services but is attached to the original textile business
He talks in detail about natural fibres, the texture of cloth, mirrorwork and embroidery
Buxani lives by a simple philosophy – do good to all
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KILLING OF QASSEM SULEIMANI
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
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The%20specs
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MATCH INFO
World Cup qualifier
Thailand 2 (Dangda 26', Panya 51')
UAE 1 (Mabkhout 45 2')
Killing of Qassem Suleimani
The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press