Multi chairman Van Veggel resigns amid tax evasion probe

Hans van Veggel, founder and chairman of Multi, has resigned from the European shopping centre developer.

In a statement on Tuesday evening, Van Veggel said that he had taken the decision as Multi was being adversely affected by media coverage of a tax evasion probe launched by the Dutch justice department into Van Veggel's financial dealings. The news about the investigation has come hard on the heels of reports that US private equity giant Blackstone is preparing to take over the Dutch developer.

Van Veggel said: ‘In the past week I have been confronted by a disproportionate clash with the Dutch tax authorities in relation to a private matter. The subsequent media uproar has, in my opinion, been disproportionally harmful for my reputation. I consider it is not possible for me to function normally in these circumstances. I have therefore decided to withdraw from my roles with Multi and to take my leave.’

In a reaction, Multi said it regretted Hans van Veggel’s decision to step down and the circumstances under which the decision had to be taken. 'Although the case involves a private matter unrelated to Multi, also Multi is adversely affected by media reporting. Hans van Veggel puts Multi’s interests first and hopes that he can minimise any caused damage by resigning from his management position at this company.'

The central allegation against Van Veggel is that he tried to conceal 'several tens of millions' of profit in 2006 from a private real estate deal by using a trust fund vehicle located in Curaçao, a Caribbean island which is part of the Kingdom of the Netherlands. The public prosecutor estimates that the total loss to the Dutch treasury is over €25 mln.

Last week it emerged that justice officials have searched Van Veggel's home in Wassenaar, near The Hague, and several business premises, including Multi's headquarters in the Dutch city of Gouda and the Arnhem office of taks adviser Ernst & Young, as part of the investigation. Assets worth millions of euros and a cash sum of €200,000 were seized from Van Veggel's home.

Van Veggel has denied any wrongdoing, and gone on record as saying: ''There exists a difference of opinion with the tax department about the manner in which a particular transaction carried out in 2003 should be treated for tax purposes. There have been on-going normal consultations with a tax inspector in relation to this difference of opinion.'

Multi was full of praise on Tuesday evening for its departing founder: 'Multi has developed into one of the biggest and most prestigious developers and managers of retail property in Europe. Van Veggel's role at Multi has unmistakably been crucial. His design & development philosophy, vision, ability and dedication have been essential to the company’s growth and to the realisation of the many innovative and award-winning shopping centres and high-grade inner-city reconstructions.'

'Multi’s management and its 600+ employees are very grateful for the inspiring role he has played for nearly 35 years,' the company added.