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Now 13 Aussies arrested in Dubai collapse
March 2, 2009
A vision of gleaming new cities in the desert has proved to be a mirage for Australians lured by Middle East riches.

Three property industry high-flyers, including the senior agent of a company part-owned by James Packer, are among a growing number of Australians under arrest or investigation in Dubai as a supposed development miracle has succumbed to the world financial crisis.

Australian authorities have confirmed that 13 Australians are under arrest in Dubai over charges or allegations ranging from bribery to failure to pay bills.

A legal source in Dubai has confirmed that among those in jail or under effective house arrest over property-related bribery allegations are:

They are of particular concern to lawyers and the Australian embassy because of the seriousness of the allegations and the uncertainty about their future. United Arab Emirates law allows suspects to be held indefinitely without charge.

It is believed the allegations involve millions of dollars in consultancy payments by Sunland to Nakheel and a third party over a waterfront property purchase.

Nakheel is one of four development companies linked to the government and ruler Sheik Mohammed bin Rashid al-Maktoum.

Mr Lee and Mr Joyce have been in solitary confinement since January 25. They have been allowed only limited access to lawyers and family.

Martin Amad is Mr Lee's and Mr Joyce's Melbourne lawyer. He refused to identify Mr Lee by name or discuss details of the cases. But he said he was anxious for his clients as they entered their second month in custody without charge. "We're concerned for the welfare of the accused in custody where they've been kept in solitary confinement. Their physical and mental health has deteriorated. We are becoming increasingly frustrated at the time it seems to be taking for the prosecution authorities to investigate the matter."

Mr Amad said he was confident that after the prosecution was made aware of the full details of the property deal, the case against his clients would be dropped.

Foreign Affairs Minister Stephen Smith recently cautioned Australians overseas to be aware of, and comply with, local laws.

Commenting on the 13 Australians under arrest in Dubai, a Department of Foreign Affairs and Trade spokesman said: "The United Arab Emirates legal system is different to the Australian legal system. People who are under investigation can be held in detention for long periods of time without bail."

In the mid-2000s, Dubai began marketing its plan for a property-led future: instant megacities underwritten by billions in sovereign wealth.

Thousands of Australians in the property industry flocked there, lured by tax-free work and projects underpinned, apparently, by government cash.

Among them were prominent local figures such as ex-Docklands Authority boss Jon Tabart, former City of Melbourne chief executive David Pitchford, senior Bracks government planner and bureaucrat Lindsay Neilson, builders Grollo and architects Woods Bagot.

Experts estimate that, at the peak of the boom, a quarter or more of the world's cranes were swinging on Dubai's new skyline.

But it came to a screaming halt last year as Nakheel pulled the pin on a proposed 1000-metre skyscraper. The Government's cash proved to be debt after all, and speculation-driven development meant 40,000 cranes had been building a house of cards.

Expats from around the world fled in their thousands.

Among those left there is real fear as stories spread of Australians, Americans and others going missing, only to turn up in prison days later.

Whether the allegations of bribery and other offences prove true, some close to the Dubai scene say authorities are seeking scapegoats.

'There is a lot of face-saving to be done," says one Melbourne property player well versed in business in Dubai.

"The sheikh can never be responsible, so somebody else has to be."

Most Australians interviewed for this story would not be identified. "You have to be really careful. It's not a democracy here," one said.

An exception is Karl Fender, co-founder of Fender Katsalidis.

He said in Melbourne his company was involved in a string of projects, most of which had stalled.

One scheme involved the construction of thousands of villas. In September 1600 sold. In October, only one sold.

Mr Fender said the Dubai phenomenon always felt shaky.

"Dubai was a place in a hurry. It was based on a hard-to-define marketplace, and built on a frenzy of speculation," Mr Fender said.

Last week, The Age sought comment through the UAE embassy in Canberra.

The embassy did not respond.

Sunland's Mr Brown did not respond to phone calls or emails.

Sunland's managing director in Australia, Sahba Abedian, confirmed Mr Brown had been interviewed by police, but insisted his company was not implicated in the investigation.

Really??? Is it Possible??? Aussies???? YEAH.

Edited to add:

I guess it isn't just the Arabs who were corrupt. I'm sure those jailed are playing "Let's Make a Deal". "I'll give the money back and give someone up if you let me go home." Thought: "Thank god I opened that off-shore account and put some away for a rainy day, because I'm in the middle of a freaking hurricane!"

now the crisis started to hit Dubai, the greed will get what it desrved, however, the city will also loose it's buzz..


xl

muyesser wrote:now the crisis started to hit Dubai, the greed will get what it desrved, however, the city will also loose it's buzz..


xl

Banglaboyz bring bugzz, floods and kill there own officers for a pay raise...
Australians bring wildfires and software engineers (know that guy from the Marina?)

The Dutchies bring waterworlds and tsunami barriers.

Whats your buzz?

[quote="RobbyG
Banglaboyz bring bugzz, floods and kill there own officers for a pay raise...
Australians bring wildfires and software engineers (know that guy from the Marina?)

The Dutchies bring waterworlds and tsunami barriers.




All of the above..


xl

muyesser wrote:[quote="RobbyG
Banglaboyz bring bugzz, floods and kill there own officers for a pay raise...
Australians bring wildfires and software engineers (know that guy from the Marina?)

The Dutchies bring waterworlds and tsunami barriers.


All of the above..

xl

Ok, you can stay

Robby, if we could export the wildfires, floods, droughts, locus plagues, hailstorms, funnel-web spiders and king brown snakes we would you know

I think I know that guy you're talking about too. Chiseled good looks, razor sharp wit and incredible luck with the ladies? That's him right?

hahahaha!

Captain Australia wrote:Robby, if we could export the wildfires, floods, droughts, locus plagues, hailstorms, funnel-web spiders and king brown snakes we would you know

I think I know that guy you're talking about too. Chiseled good looks, razor sharp wit and incredible luck with the ladies? That's him right?

hahahaha!

Yeah, I think we're on the same page here.

Last name is Cox, right? Thats the one

That's the guy.

Back to the story: Besides a few people who may have bounced cheques, I'm not sure what those guys being in jail has to do with the financial crisis. They (allegedly) committed fraud, and probably would have anyway even if they were doing well. Just greed.

I had to laugh at this line though

"The United Arab Emirates legal system is different to the Australian legal system. People who are under investigation can be held in detention for long periods of time without bail."

There was a big stink in Australia recently because the government was passing these OMG terrorists laws that allowed them to hold people for long periods without charging them. They kept that Dr Haneef guy for ages until they finally had to release him due to him being rudely innocent. He's now living in Dubai to get away from the crazy Aussie cops. Oh the irony.

Seems someone broke the 11th Commandment:

"Thou shalt not get caught with thine sticky mitt in the till!"



Knight

Yeah, those "soft-wear' Ozzies sure use fluffy mitts.

Everything sticks on those hands...but I wonder why they didn't go digital