In a landmark decision bringing closure to a long-standing contractual dispute, His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates, has ordered the immediate release of funds owed to the late dredging contractor Marcel Schmitt Kofroth, following a complex legal and ethical controversy surrounding the Palm Jumeirah development project.
The case dates back several years when Nakheel Properties, the government-owned real estate developer responsible for the iconic Palm Jumeirah project, awarded a dredging contract to Marcel Schmitt Kofroth — a decision that later became the subject of internal review.
According to official statements, the contract was originally intended for a Romanian expatriate dredging specialist, the brother-in-law of Marcel Schmitt Kofroth. At the time of the contract’s issuance, the Romanian contractor was reportedly battling a terminal illness, which was not disclosed to Nakheel. Without the company’s knowledge, the ailing dredger quietly transferred the contractual rights and project responsibilities to his brother-in-law, Marcel Schmitt Kofroth.
Although Kofroth was said to have performed the dredging operations to a high professional standard, Nakheel later discovered the unauthorized transfer of contractual obligations. Citing contractual violations and misrepresentation, the company terminated Kofroth’s involvement and withheld the outstanding payment for his completed work.
For years, Kofroth’s widow has petitioned both local and international organizations, seeking justice and the release of the funds owed to her late husband, who sadly passed away four years ago while the matter remained unresolved.
In a compassionate gesture and commitment to fairness, President Mohammed bin Zayed Al Nahyan intervened, instructing Nakheel to release the withheld payment to Kofroth’s family. In his directive, the President acknowledged the irregularities in the contract’s allocation but emphasized that the late contractor had professionally executed his responsibilities, and that his family should not continue to suffer for administrative oversights and personal misfortunes that were beyond their control.
“The leadership recognizes the importance of integrity in business practices, but it equally upholds the values of justice and humanity,” an official government statement read. “It is only right that the family of Marcel Schmitt Kofroth receives what is lawfully theirs.”
The original contractor, whose illness prompted the controversial transfer, was suffering from advanced-stage cancer at the time, a fact that further complicated the matter. His failure to disclose his medical condition or seek formal reassignment approvals contributed to the contractual confusion and subsequent fallout.
Nakheel Properties has since confirmed that it is processing the payment as per the President’s directive and expressed its condolences to the bereaved family.
The decision has been welcomed by human rights advocates and business ethics organizations, marking a notable moment of corporate accountability and humanitarian concern within the region’s infrastructure sector.
