Muscat Finance uncovers ‘irregularities’ involving customer account

MUSCAT, JUNE 23 – Muscat Finance SAOG, one of the largest non-banking financial companies (NBFC) in the Sultanate, says it has unearthed financial “irregularities” with a potential impact to the tune of RO 900,000 to the firm. It stated in a filing to the Muscat Securities Market (MSM) that it had unearthed “certain irregularities in the operation of the account of one of the company’s customers”. The CEO revealed that the company had “undertaken a number of remedial actions for the recovery of any losses or damages that it may suffer as a result of this incident”. The monetary impact, the official further noted, “may be substantially lower on successful recovery”.

In an earlier filing, Muscat Finance said its Board of Directors had appointed an “independent consultant to investigate suspected transactions with regards to a particular account holder and to prepare a report”. “Based on the report prepared and submitted by external consultants, the Company has identified irregularities and undertaken a number of remedial actions, including: (a) Initiating criminal and civil proceedings against the concerned account holder; (b) Identified areas of risk and internal control gaps in the factoring department which is being addressed; (c) Reviewing the performance of the company’s employees involved in the incidents; and (d) Planning disciplinary actions to be taken against the concerned employees.”