Business | General
Officials call for complete enforcement of laws
The full implementation of the corporate governance codes issued by the Securities and Commodities Authority (SCA) last year will ensure better transparency and less corruption, senior officials said on Monday.
- By Ahmed A. Elewa, Staff Reporter
- Published: 23:45 August 18, 2008
- Corruption fight 'will spare no one'
- 'Corporate governance very solid'
- Dubai's economic growth rests on good governance
- 'Corporate governance very solid'
- Crackdown on corruption
- UAE lawyers welcome move
- Investors dump Tamweel stocks
- Call for better fiscall reporting, stringent audits
- Business leaders laud initiative
- Corruption and lack of transparency remain key challenges
Abu Dhabi: The full implementation of the corporate governance codes issued by the Securities and Commodities Authority (SCA) last year will ensure better transparency and less corruption, senior officials said on Monday.
"The full implementation of the corporate governance codes will help eliminate corruption cases, although there is no such thing as a corruption-proof country, it happens in the US, Europe, and Asia," Abdullah Al Turaifi, CEO of SCA told Gulf News.
"Achieving full implementation is a process that extends for three years, and at this stage, we are still making progress so that full application takes the final shape by the end of 2009," he said, explaining that the process involves drastic managerial and administrative changes on behalf of the companies.
"There are new departments that must be established, new employees, and new systems that are required by the new laws, and this will take some time," he added.
The higher degree of transparency will positively influence the stock markets in the longer term, while in the short term; the specific stocks in concern can suffer from losses.
"In a longer term, such transparency is evidence for better corporate governance; a determining factor for foreign investors, especially institutions, looking to invest in our markets," commented Khalid Abdul Rahman, general manager of Abu Dhabi Financial Services.
Related Links
"Today, transparency and corporate governance indices include the least yielding assets, owing to the lower risks associated with such investment, and exposing these cases in Dubai will boost investor confidence," he added.
Abu Dhabi has a less attractive transparency record. In 2006, an incident between Sorouh Real Estate and PriceWaterHouse-Coopers in 2006, its auditing firm at the time, was poorly disclosed and ended leaving public shareholders with insufficient explanations.
"We badly need the implementation of the new laws, as these will help curb corporate corruption," said Ahmad Ali Al Hosani, director of the companies department at the Ministry of Economy.
"Better governance will only yield less misbehaviour," he added.
More from Business General
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
