Source: Sydney Morning Herald 21 Oct 09
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Two Australian businessmen have been granted bail after languishing in a Dubai jail for nine months on suspicion of fraud.
Melbourne man Matt Joyce, 43, and his colleague Marcus Lee, 40, of Sydney, were arrested in January after working for three years for the Nakheel company's multi-billion dollar Dubai Waterfront development.
Their arrests came as the global financial crisis hit the local property market hard.
The pair were held in jail for six months before charges of misappropriation were laid.
Last month an independent judge finally assessed their applications and granted an application to hear their case.
Joyce's Australian lawyer Martin Amad said his client was due to be released from prison in the next few days while Lee is also due for release shortly.
The co-accused will be required to hand in their passports once released ahead of the first witness appearance on November 17.
Legal processes in Dubai are primarily controlled by the prosecution, Mr Amad said.
"There's no time limit as to which a prosecutor needs to provide a file," he told AAP.
Joyce will spend time with his wife and three children before concentrating on preparing his defence with his local legal representative.
"We've got confidence he'll be found innocent.
"His wife is over the moon and can't wait to have him back in the home."
Showing posts with label Matt Joyce. Show all posts
Showing posts with label Matt Joyce. Show all posts
Wednesday, 21 October 2009
Sunday, 26 July 2009
Dubai bribery case: Shaping up to be a bitter public brawl
This is shaping up to be an enthralling, and very public, brawl. As a commenter on an earlier posting pointed out, this matter will be open to public gaze once it starts to process through the Australian Courts. If the Court case captures the public imagination, as it no doubt will, it will take on a life of its own. No matter what the eventual outcome, Dubai's reputation, in Australia at least, will be severely damaged, mud will be slung and some of its going to stick.Source: Sydney Morning Herald 27 July 09
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FOR more than 150 years, Geelong Grammar has provided its privileged graduates with the keys to success in an Anglo-dominated Australia. But for the Old Grammarian classmates and property industry figures Angus Reed and Matt Joyce, some training in doing business in more exotic places like the United Arab Emirates might have been more useful.
The Herald can reveal that Mr Reed, a Melbourne-based developer, has emerged as the mystery man at the heart of a Dubai property deal gone bad; a transaction that has left Mr Joyce and and another Australian executive, Marcus Lee, languishing in prison for six months and facing trial for fraud.
Mr Reed and an Australian lawyer, Anthony Brearley, are believed to have left Dubai before a police investigation, thus avoiding jail. Well-placed sources last night confirmed that Mr Reed and Mr Brearley have been declared "fugitives" in Dubai and will be tried in their absence.
The Herald also understands that the James Packer-backed developer Sunland Corporation has Mr Reed and Mr Joyce in its sights as it prepares civil action to recoup millions it says it lost on the deal.
Like thousands of their colleagues, Mr Reed and Mr Joyce ventured to Dubai a few years ago in search of riches. The dream turned sour last year for Mr Joyce in particular, when the emirate's "miracle" property boom proved to be a very fragile bubble.
Until his arrest in January, Mr Joyce had been managing director and Mr Lee a senior executive of Dubai Waterfront, a subsidiary of the state-owned Nakheel Corporation. It is the world's biggest waterfront development.
Important to the charges against Mr Joyce and Mr Reed are payments allegedly made by Mr Reed's Australian company, Prudentia Investments, to a bank account in Jersey held by Mr Joyce. Both men are expected to insist that any such payments were unconnected with the Dubai property deal in question.
A source close to Mr Reed says he is deeply upset by his mate's predicament but has not returned to Dubai for fear of being arrested.
At the core of the row is the sale in 2007 of a parcel of development land by Dubai Waterfront to Sunland. Prudentia is believed to have partnered Sunland in the purchase of the waterfront site. But Prudentia sold its share of the project to Sunland as the boom continued through 2007. Now Sunland has put development of the site on hold and says it is the victim of fraud.
It has made a formal complaint to Queensland police and the Australian Competition and Consumer Commission. The Herald understands the company names Mr Reed, Mr Joyce and Mr Lee.
One source close to one of the families said the saga had led to tension between the two old school friends, a suggestion rejected by a spokesman for Mr Joyce.
Mr Joyce and Mr Lee insist they are innocent. Australian business sources have complained that the two became scapegoats amid the property collapse in Dubai, where "commissions" or kickbacks have been commonplace.
The Dubai prosecutors and Sunland, which has billions at stake in Dubai, see things differently. Sunland has stated publicly that it will seek "civil remedies in respect of the alleged fraud".
It has repeatedly stated that it is co-operating fully with the Dubai authorities in its investigation of Mr Joyce and Mr Lee but has denied being behind the police action against them.
Any civil action will be taken in Australia, not Dubai. But in what is shaping up as a bitter stoush, with big-name lawyers such as Robert Richter (QC, William Crockett Chambers in Melbourne and barrister for underworld gunman Mick Gatto) likely to be throwing the punches, the case is set to open a rare window into the opaque world of business and government in a country dominated by its ruler, Sheikh Mohammed bin Rashid al-Maktoum.
Mr Reed is well-known in property circles, including as an adviser to the Nauru Government in the 1990s, when it lost a fortune on the Melbourne property market.
Those who know the two men say Mr Joyce is quiet and cautious while Mr Reed is more entrepreneurial and daring. It is counter-intuitive, they say, that Mr Reed is now a free man at home in Toorak while Mr Joyce sweats it out in a Dubai jail.
After a thorough vetting by Mr Reed's lawyers, Prudentia issued a brief written statement. The lawyers would not allow Mr Reed to be quoted. Instead, a company "spokesman" said: "Some years ago, the Prudentia group, through its Singapore-based subsidiary, was involved in a transaction which we understand is the subject of the investigation by the Dubai authorities.
"The Prudentia group has at all times acted properly and with integrity and is concerned and surprised that there would be any allegations of wrongdoing against representatives of any of the parties involved in the transaction."
Mr Joyce's Melbourne lawyer, Martin Amad, restated his client's innocence and questioned Sunland's motives. He said the land sale was a "legitimate business transaction that occurred prior to the global economic downturn. Sunland has subsequently incurred a huge loss on the project and has written down the value of the land substantially."
He added: "Shareholders of Sunland would hope that Sunland exercised due diligence prior to purchasing the land. After all, they would have their shareholders believe they are an experienced and sophisticated property developer."
He said that, contrary to previous reports, there had never been an allegation of Sunland paying consultancy fees to Dubai Waterfront.
Mr Joyce's wife and three children and Mr Lee's wife are still in Dubai, awaiting the outcome of the fraud trial.
Sunland did not wish to add to a written statement made to the Stock Exchange last week.
In a separate matter in Sydney last week, Prudentia refused to comment about its plans for the Waratah Park Earth Sanctuary, where Skippy the Bush Kangaroo was filmed in the 1960s, after the RSPCA put down two emaciated kangaroos at the closed park. State authorities say Prudentia has failed to obtain a licence to care for more than 100 native animals in the park since it took over the site in Duffys Forest, on the northern beaches, in 2006. Residents fear the company has let the site run down because it wants to build houses there.
Monday, 20 July 2009
Aussies face bribe charges in Dubai
From the Sydney Morning Herald 20 July 09
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Two Australian businessmen have been formally charged with fraud, almost six months since they were thrown into a Dubai prison.
Marcus Lee, from Sydney, and Matt Joyce, from Melbourne, were arrested in January on suspicion of bribery while working on a development project for the United Arab Emirates government-owned Nakheel property group.
Mr Joyce's lawyer Martin Amad today told ABC Radio formal charges had been laid, although the exact details of the allegations were still not known.
"We've just received the charges yesterday and we haven't had a chance to have it translated," he said.
The charges are related to fraud.
The men were each held in solitary confinement for seven weeks, had been moved between three prisons and were struggling to deal with their detainments, Mr Amad said.
Although he had yet to read the prosecutor's brief, he suspected the case against the pair was weak.
"A particular set of circumstances may lead to charges in Dubai, but may not be sufficient in Australia and I think that's probably the case here."
The federal government has confirmed 91 Australians have been arrested in the UAE - most in Dubai - since January 2008.
Mr Amad said the figure was unlikely to recede, given foreigners were increasingly being made scapegoats for soured business deals.
"More and more people are now starting to understand the risks in doing business overseas," he said.
"With the impact of the global financial crisis, I think more and more people will be charged on similar allegations and I think Australians and the Australian Government need to be aware that this is a distinct possibility."
Mr Amad said in a statement later that the wives of Mr Joyce and Mr Lee, and Mr Joyce's three children, were all in Dubai awaiting the outcome of the legal proceedings.
"The experience, and concern about the eventual outcome of the case, has taken its toll on the two men and their families," he said.
The pair were now being held in Al Awar Central prison, where they were allowed non-contact visits once a week, Mr Amad said.
The defence was looking forward to presenting its evidence and believed the case against the pair should be dismissed, he said.
=========================
Two Australian businessmen have been formally charged with fraud, almost six months since they were thrown into a Dubai prison.
Marcus Lee, from Sydney, and Matt Joyce, from Melbourne, were arrested in January on suspicion of bribery while working on a development project for the United Arab Emirates government-owned Nakheel property group.
Mr Joyce's lawyer Martin Amad today told ABC Radio formal charges had been laid, although the exact details of the allegations were still not known.
"We've just received the charges yesterday and we haven't had a chance to have it translated," he said.
The charges are related to fraud.
The men were each held in solitary confinement for seven weeks, had been moved between three prisons and were struggling to deal with their detainments, Mr Amad said.
Although he had yet to read the prosecutor's brief, he suspected the case against the pair was weak.
"A particular set of circumstances may lead to charges in Dubai, but may not be sufficient in Australia and I think that's probably the case here."
The federal government has confirmed 91 Australians have been arrested in the UAE - most in Dubai - since January 2008.
Mr Amad said the figure was unlikely to recede, given foreigners were increasingly being made scapegoats for soured business deals.
"More and more people are now starting to understand the risks in doing business overseas," he said.
"With the impact of the global financial crisis, I think more and more people will be charged on similar allegations and I think Australians and the Australian Government need to be aware that this is a distinct possibility."
Mr Amad said in a statement later that the wives of Mr Joyce and Mr Lee, and Mr Joyce's three children, were all in Dubai awaiting the outcome of the legal proceedings.
"The experience, and concern about the eventual outcome of the case, has taken its toll on the two men and their families," he said.
The pair were now being held in Al Awar Central prison, where they were allowed non-contact visits once a week, Mr Amad said.
The defence was looking forward to presenting its evidence and believed the case against the pair should be dismissed, he said.
Wednesday, 18 February 2009
The Dubai bribery case makes the "Sydney Morning Herald"
From the Sydney Morning Herald
18 February 09
UNTIL his arrest for suspected bribery last month, Matt Joyce was in command of the world's biggest waterfront development, the most audacious project yet in Dubai Inc's high-rise fantasia.
Joyce, the Australian managing director of the state-backed Dubai Waterfront, boasted of its vital statistics in a recent interview. Stretching 30 kilometres, it would cover 14,000 hectares, making it twice the size of Hong Kong Island.
It would dwarf the emirate's famous World and Palms developments. It would reclaim six islands and involve shifting enough sand to fill Wembley Stadium three times every month. And it would become home to 400,000 people within five years.
"We have the luxury of creating this city on a blank canvas," said Joyce, who would oversee the construction of yet another space-age Atlantis rising from the Arabian Gulf.
But Dubai's blank canvas has become murky. Few of the world's property bubbles became as inflated as Dubai's, and few have burst so explosively in the global meltdown.
Joyce, 43, the former Sydney-based chief of the respected property group St Hilliers, was among five senior executives made redundant from Dubai Waterfront last month.
Then, on January 25, he and two Australian colleagues were taken in for questioning as part of a year-long crackdown on fraud and corruption among state-backed property developers and banks. One of the Australians, a 55-year-old man from Brisbane, was released. But Joyce and another Melbourne man, 44, are still being held without charge. Both have families in Dubai.
Last night, Sydney time, the prosecution was in court applying to extend their custody for another 15 to 30 days. Their Australian lawyer, Martin Amad, was there and told the Herald: "No charges have been laid and both men strenuously deny the allegations."
He said they were confident that authorities would soon determine their innocence based on documentation they had supplied. He would not name Joyce's colleague.
The men are among more than 20 executives in jail as part of Dubai's fraud and corruption investigation. All are yet to be charged, but some have spent almost a year behind bars. Dubai police have given no details on whom the Australians allegedly bribed.
Joyce's lawyer in Dubai, Salem Al Sha'ali, had told the Gulf News: "The suspected transaction cannot be considered a bribe. The figure isn't exact and the amount was given back because the deal didn't go through. It's a big misunderstanding."
Mr Amad said the quote, as reported, was inaccurate and he insisted there was no transaction and no deal. "No bribe was paid."
A former work colleague of Joyce's, from Australand in Sydney, described him as "straight and decent".
"If there's anything there, it would be totally out of character," he said.
For the 16 months before his shift to Dubai, in April 2006, Joyce was chief executive at
St Hilliers in Sydney. It is well known in the industry that he parted on unhappy terms, although his termination contract prevents St Hilliers revealing the reasons.
Joyce joined Dubai Waterfront, whose parent company is the government-owned Nakheel. Nakheel is the biggest developer in the United Arab Emirates and has projects worth about $US80 billion ($124 billion).
Asked how the Australians were being treated in jail, Mr Amad said they had no complaint. They were "anxious to be released" but there was slim chance overnight of bail.
Joyce had been made redundant shortly before his arrest. Asked if there were fears that the men were being made scapegoats for the broader corruption inquiry, Mr Amad said he could not comment. "It is not an argument we are putting forward."
Regardless of the case against the Australians, Dubai Inc is on trial in the eyes of the investment world, and the fraud crackdown has signalled the emirate's determination to send a clear message that it is a good place to do business.
Dubai property values are in free-fall. Some forecast they will drop by as much as 50 per cent this year.
Along with thousands of redundancies, local police reported at least 3000 cars abandoned outside Dubai International Airport in the four months to January. Many had keys in the ignition. It seems debt-ridden and jobless foreigners are fleeing Dubai.
Nakheel insists Dubai Waterfront is forging ahead.
Unlike the other emirates, Dubai has little oil to speak of. It has only its real estate, built on the whims of its rich and its rulers. Only on this can it guarantee its future as a global financial hub
18 February 09
UNTIL his arrest for suspected bribery last month, Matt Joyce was in command of the world's biggest waterfront development, the most audacious project yet in Dubai Inc's high-rise fantasia.
Joyce, the Australian managing director of the state-backed Dubai Waterfront, boasted of its vital statistics in a recent interview. Stretching 30 kilometres, it would cover 14,000 hectares, making it twice the size of Hong Kong Island.
It would dwarf the emirate's famous World and Palms developments. It would reclaim six islands and involve shifting enough sand to fill Wembley Stadium three times every month. And it would become home to 400,000 people within five years.
"We have the luxury of creating this city on a blank canvas," said Joyce, who would oversee the construction of yet another space-age Atlantis rising from the Arabian Gulf.
But Dubai's blank canvas has become murky. Few of the world's property bubbles became as inflated as Dubai's, and few have burst so explosively in the global meltdown.
Joyce, 43, the former Sydney-based chief of the respected property group St Hilliers, was among five senior executives made redundant from Dubai Waterfront last month.
Then, on January 25, he and two Australian colleagues were taken in for questioning as part of a year-long crackdown on fraud and corruption among state-backed property developers and banks. One of the Australians, a 55-year-old man from Brisbane, was released. But Joyce and another Melbourne man, 44, are still being held without charge. Both have families in Dubai.
Last night, Sydney time, the prosecution was in court applying to extend their custody for another 15 to 30 days. Their Australian lawyer, Martin Amad, was there and told the Herald: "No charges have been laid and both men strenuously deny the allegations."
He said they were confident that authorities would soon determine their innocence based on documentation they had supplied. He would not name Joyce's colleague.
The men are among more than 20 executives in jail as part of Dubai's fraud and corruption investigation. All are yet to be charged, but some have spent almost a year behind bars. Dubai police have given no details on whom the Australians allegedly bribed.
Joyce's lawyer in Dubai, Salem Al Sha'ali, had told the Gulf News: "The suspected transaction cannot be considered a bribe. The figure isn't exact and the amount was given back because the deal didn't go through. It's a big misunderstanding."
Mr Amad said the quote, as reported, was inaccurate and he insisted there was no transaction and no deal. "No bribe was paid."
A former work colleague of Joyce's, from Australand in Sydney, described him as "straight and decent".
"If there's anything there, it would be totally out of character," he said.
For the 16 months before his shift to Dubai, in April 2006, Joyce was chief executive at
St Hilliers in Sydney. It is well known in the industry that he parted on unhappy terms, although his termination contract prevents St Hilliers revealing the reasons.
Joyce joined Dubai Waterfront, whose parent company is the government-owned Nakheel. Nakheel is the biggest developer in the United Arab Emirates and has projects worth about $US80 billion ($124 billion).
Asked how the Australians were being treated in jail, Mr Amad said they had no complaint. They were "anxious to be released" but there was slim chance overnight of bail.
Joyce had been made redundant shortly before his arrest. Asked if there were fears that the men were being made scapegoats for the broader corruption inquiry, Mr Amad said he could not comment. "It is not an argument we are putting forward."
Regardless of the case against the Australians, Dubai Inc is on trial in the eyes of the investment world, and the fraud crackdown has signalled the emirate's determination to send a clear message that it is a good place to do business.
Dubai property values are in free-fall. Some forecast they will drop by as much as 50 per cent this year.
Along with thousands of redundancies, local police reported at least 3000 cars abandoned outside Dubai International Airport in the four months to January. Many had keys in the ignition. It seems debt-ridden and jobless foreigners are fleeing Dubai.
Nakheel insists Dubai Waterfront is forging ahead.
Unlike the other emirates, Dubai has little oil to speak of. It has only its real estate, built on the whims of its rich and its rulers. Only on this can it guarantee its future as a global financial hub
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