Wednesday, 9 June 2010

Abdullah Brothers: Poachers turned gamekeepers

The Abdullah Brothers ran Damas International, a jewellery company, and over time they 'used for unauthorised transactions' ie knicked, $165 million in cash and gold from the company.   They were found out, dismissed and ordered to repay the amount.  They then missed the first repayment but that's not considered a default (it would be for anyone else..) and now, lo and behold, the company they took the money from, gives them jobs as 'advisors'. 
 Source: ArabianBusiness 8 June 2010
Jewellery retailer Damas International said on Tuesday that it had appointed the company founders as senior advisors, just months after they were ordered to be dismissed for $165m of financial irregularities.
The company said Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah had been appointed with immediate effect.
In March, Dubai's financial regulator said the Abdullah brothers owed the company $99.4 million cash plus the value of 1,940 kilograms of gold.
They were ordered to repay $165 million in "unauthorised transactions".
The brothers missed the first scheduled repayment of $55 million due in April but Damas said in May that the skipped payment, part of a settlement agreement, was not considered a default.
In a statement issued on Tuesday, Damas said the appointments were "in line with the terms of the Enforceable Undertaking signed with the Dubai Financial Services Authority".
A spokesperson said: "Damas International Limited is pleased to announce the appointment of the Abdullah brothers as senior advisors to the company.
"At a time when Damas is going through a period of transition and pursuing a renewed strategy for its sustainable growth, the involvement of the Abdullah brothers in an advisory capacity provides us significant depth of knowledge and insight.
"In their roles, even though the involvement is strictly non executive, the company will benefit from their valuable advice on the unique aspects of the jewellery trade."
Last week, Damas said it expected to reach a debt restructuring deal with lenders by the end of June.
Damas is in talks with banks to restructure $872 million and is operating under a standstill agreement. The lenders, some 20 banks, include foreign names like Barclays and BNP Paribas.

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