Please HELP: Police Clearance from UAE "on hold"

I need help. My wife and I are currently completing our final documents for Canada. Our interview was waived and we have already completed our medicals. Even if there is no update nor confirmation on our medicals, I am confident that we are ok.

We've been asked to submit the last set documents - - proof of funds, payslips, police clearance, etc. We have in fact sent all of these except my wife's Police Clearance from UAE. Our friend is working on it in the U.A.E. when we learned that her previous Company placed a hold order on her. She worked there from 2000-2001. During her annual leave in 2001, she submitted her resignation. She was asked to come back to cancel the Company sponsored visa and she was unable to. We both think that since the visa will naturally expire in 2003 we shouldn't bother. We were now surprise that she's in some sort of 'black list' and that we cannot secure a Police Clearance.

We have been trying to fix this but I am afraid that this will gravely affect our application. This may take a long time to fix, or worse, may not be fixed at all. I am the principal applicant, she's just secondary. Do you think this will jeopardize our position? Would you know how long it would take to resolve cases like this? Is this something that we can request to be waived?

We are really pressed for time. All documents must be sent before August 4 and we've requested extension on her Police Clearance.

Any advise from anyone will be greatly appreciated.