KSA Railway contracts are being investigated for corruption
The KSA National Anti-Corruption Commission ("Nazaha") have referred a case to the Saudi Control and Investigation Board ("SCIB") for further investigation and enforcement in relation to allegations of financial malpractice and corruption by Saudi Railway Organisation ("SRO"). There were three contracts signed in 2005 between SRO and various developers which were valued at a total sum of SAR504million. These contracts were never performed or completed and therefore Nazaha has given a public warning to SRO stating that there was an abuse of public funds and resources and referred this case to SCIB. SRO have not yet publicly responded to the allegations.
Bribery case brought against a public employee in the UAE
There has been a recent case in the Dubai Criminal Courts in relation to bribery of a Dubai public official (Dubai airport employee). Under the law the public official may be subject to a fine not exceeding AED 10,000 and imprisonment of up to one year. However, it remains to be seen whether the Dubai Criminal Courts will use this as an example to deter bribery and impose a heavier fine on this employee or even imprisonment.
Draft Anti-corruption Federal Law expected sometime this year in the UAE
The UAE State Audit Institution have been involved in drafting a new anti-corruption law which will establish an authority to investigate anti-corruption crimes. The proposed new law is going to impose heavier fines and penalties than the present law. The criminal penalties will include imprisonment for up to two years (double the penalty in the present law) and fines between AED 250,000 to AED 1,000,000.