The unpaid traffic fines are the product of 353,000 traffic fines, most of which were for speeding offences.
The unpaid traffic fines are the product of 353,000 traffic fines, most of which were for speeding offences.

Police seek out Dh70m in unpaid traffic fines



DUBAI // Police are in pursuit of Dhs70 million (US$19m) in unpaid traffic fines accumulated by individuals and car-hire firms over the past 18 years. A special team has been formed to gather the outstanding money, the product of 353,000 traffic fines, most of which were for speeding offences. Police say car-rental companies are a particular cause for concern as many have a record of failing to pay traffic fines committed in their vehicles.

The majority of cases are from between 2005 and 2007, but some unpaid fines date back as far as 1990. Although declining to name and shame the key offenders, police say they are determined to see that every dirham owed is paid and a team of 11 officers has been on the trail of the missing millions since March. Car-hire customers are made to pay any fines they have accumulated when they return their vehicles, and so some companies appear to be keeping the money instead of passing it on to the authorities.

Many outstanding traffic fines are picked up when car owners renew registrations. Some hire companies are operating unregistered cars rather than face paying outstanding debts. "Rental companies have multiple cars and their cars are being driven all the time and that causes the accumulation of so many fines," said Capt Ahmed Atiq Ejtibi. Police warn of dire consequences for companies that fail to pay up soon. "We hope that those involved will come forward to clear their debts or else they will be forced to face the consequences, which can include closing down their business," Capt Ejtibi said.

Companies also face losing their vehicles. Three firms with a combined debt of nearly Dh1m began making payments last month, after the police task force impounded five top-end cars. "We removed two Range Rovers, two BMWs and a Porsche Cayenne between the three companies," said Capt Ejtibi. "They all had expired registrations. "The companies have been able to pay Dh400,000 in total as first payments so far. But one company, which also has 74 cars with expired registrations, still did not make any payments towards its Dh400,000 debt, and it will be forced to shut down if payments do not start to be made soon."

Some company owners said they could not afford to make payments, said Capt Ejtibi, but this was an unconvincing defence as customers were always made to pay any outstanding fines. "The companies have been approached and warned," he said. "Most promise to pay and others say that they cannot afford it and need more time, but then continue avoiding to pay." Some companies, he said, "decide to pocket the money they receive instead of making payments".

Violators are warned and then given a grace period of up to three months to settle payments. If that fails, a tougher approach is taken. "The team follows and tracks cars with offences of six months and more," Capt Ejtibi said. "They are being monitored daily and undercover police visit car rental companies twice a month. "They observe and look for the location of violating and wanted vehicles.

"Once located, the cranes are brought in and impound the cars." Mr Ejtibi said some companies continued to use illegal cars by hiring them out to often unwitting customers. "Customers who rent a car should take the responsibility to check the car's registration and whether the car is insured before they hire a vehicle to avoid being stuck in a situation they don't need to be in," he said. Capt Ejtibi warned that insurance alone did not guarantee that the vehicle could be driven legally on the road. "Some cars are insured yet have an expired registration. Owners avoid renewing the registration because they do not want to pay the hefty fines, yet some private insurance companies will renew the insurance without proper registration."

Tracking down those responsible was not always a straightforward job. The team has found that some car-rental firms have closed down or changed their telephone number. "Some of the companies we are trying to reach don't even exist anymore," said Capt Ejtibi. "There are about 20 car-rental companies registered in our database that no longer exist." Moreover, some of the vehicles also no longer existed.

"Some owners don't even know where some of their vehicles are. They are usually old cars that perhaps have been abandoned or sold as scrap but they still need to pay their fines." Police say there are 4,000 car-rental vehicles with expired registrations in Dubai. "Vehicles with expired registrations are being caught on the roads every day; some belong to car-rental companies, some to other companies and others to members of the public," said Capt Ejtibi.

"However, now everyone should know that this team is out there, dedicated to one job, which is targeting anyone who fails to pay their fines." @Email:rabubaker@thenational.ae

TICKETS

Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.

Global institutions: BlackRock and KKR

US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.

KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.

 

Company Profile
Company name: OneOrder

Started: October 2021

Founders: Tamer Amer and Karim Maurice

Based: Cairo, Egypt

Industry: technology, logistics

Investors: A15 and self-funded 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
if you go

The flights
Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes.
The trip 
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles. 

Movie: Saheb, Biwi aur Gangster 3

Producer: JAR Films

Director: Tigmanshu Dhulia

Cast: Sanjay Dutt, Jimmy Sheirgill, Mahie Gill, Chitrangda Singh, Kabir Bedi

Rating: 3 star