BUSINESS REPORTER
MUSCAT, JAN 30
The Board of Directors of Sweets of Oman SAOG, a Rusayl-based confectionery maker listed on the Muscat Securities Exchange (MSX), announced on Sunday that it has dismissed a board member on “criminal suspicion” of involvement in an alleged case of financial fraud uncovered last year.
The announcement follows an emergency meeting convened by the Board last week to review the findings of a legal expert commissioned by the company to look into the suspected theft of funds.
In a filing to the Capital Market Authority (CMA) last October, Sweets of Oman said it had lodged a criminal case against a number of managers in connection with a fraud uncovered by the company in its accounts. It noted that, following an independent review of its accounts, a “misstatement” of its financial statements had been discovered, leading to a significant increase in its accumulated losses.
It said the misstatement occurred in the financial statements for the years 2017, 2018, 2019 and until June 30, 2020, representing the second quarter of the financial year ended on December 31, 2020.
Following the uncovering of the misstatement, four senior executives — the General Manager, Finance Manager, Assistant Finance Manager, Purchase Manager and Information Technology Manager — were suspended and eventually dismissed. A criminal case was also instituted against them with the Economic Crimes section, it said.
“As the financial impact resulting from the above mentioned misstatements, the company incurred a huge loss of amounts which were disclosed previously in this regard. As such, the business of the company is duly affected as a result of these financial losses incurred by the company’’, the Chairman had added.
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