Thursday, 7 April 2011

Damas eyes millions in deals struck by brothers - The National

Damas International is trying to recover hundreds of millions of dirhams' of investments, loans and payments for merchandise that the three Abdullah brothers made without proper documentation, says the jewellery company's chairman.

"We had a lot of collections and deals that were not documented properly, so people were only willing to come forward to the people with whom they shook hands," said Ibrahim Belselah, the chairman of Damas, a public company. He added that the brothers - Tawfique, Tawhid and Tamjid - routinely sealed deals with handshakes or verbal agreements, rather than formal contracts. "There's quite a lot of money still out there. It's in the hundreds of millions," Mr Belselah said.

The Dubai Financial Services Authority (DFSA) fined the company and the Abdullah brothers in March last year, and banned the brothers from executive positions at any company overseen by the regulator after it emerged the three men had improperly withdrawn Dh365 million (US$99.3m) of cash and almost two tonnes of gold worth Dh250m from Damas without shareholder approval. The DFSA also dissolved the Damas board.

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