Damas digging deep
The jewellery company has appointed PWC as an external auditor to scrutinize the “unauthorized transactions” performed by its ex-CEO.
October 15, 2009 4:20 by Aarti Nagraj
Damas, which went public last year, said that it is also planning to appoint an international law firm to oversee and advise the company on corporate governance.
Interestingly, the company appears to have been open about the issue so far, which may indicate that GCC corporations are recognizing the benefits of being transparency.
Since last year, numerous cases of corporate fraud have been identified in the UAE, and the government has stressed that it will enforce practices to promote transparency.
Furthermore, the Emirates Securities and Commodities Authority (ESCA) has laid down guidelines for corporate governance, and will be introducing a transparency law in April 2010 to force companies to abide by the authority’s regulations.
Mariam Al Suwaidi, deputy CEO for Issuance, Research and Legal Affairs at the ESCA said: “It will be a more transparent law seeking full clarity from listed companies. With the current rules and regulations, there are some ambiguities in the interpretation of some articles so we are trying to come up with a law that is more clear.”