Dubai Firm Replaces Head Following Arrest Report

ADAM SCHRECK

DUBAI, United Arab Emirates (AP) — A property development company controlled by Dubai's ruler has replaced its chairman following reports he is under arrest over improper financial dealings, the company's parent said Saturday.

The company added that Ahmad bin Byat has been named acting chairman of Dubai Properties Group.

He replaces Hashim al-Dabal, who media reports say is being detained and questioned over suspicion of financial wrongdoing.

A spokesman declined to address the investigation directly.

"Any reported issues are now a matter for the appropriate authorities," Dubai Holding, the property company's parent, said in a statement e-mailed in response to questions. The company added it is "committed to the highest levels of corporate governance."

The Khaleej Times newspaper on Saturday cited Dubai Attorney-General Issam Eisa al-Humaidan confirming reports that al-Dabal is being investigated over allegations of misuse of authority and embezzlement. It said he was taken into custody last week and had his case referred for prosecution four days ago.