Damas CEO quits over $165m transactions

Dubai: Damas, a Nasdaq Dubai-listed jewellery group, said on Monday it has accepted Tawhid Abdullah’s resignation as managing director and CEO due to his disclosure to the board of what is understood to be unauthorised transactions conducted by him, the company said in an e-mailed statement yesterday.

Meanwhile, there are reports that the Nasdaq Dubai, on which Damas is listed, has asked for clarifications from the company on its voluntary request to suspend trading.

The company said yesterday that the full extent of these transactions has not been ascertained at this time but the company’s initial estimate is that these transactions could amount to approximately $165 million (Dh606 million).

“The Abdullah brothers, being founding members and current owners of more than 50 per cent of the shares of the company, fully stand behind the company, and have agreed to commit the necessary assets to secure and repay in full any unauthorised transactions,” the company statement said.

“The board remains fully committed to the highest standards of corporate governance, and has implemented procedures to ensure that the repayment is conducted in an appropriate and timely manner and that all transactions are fully scrutinised in the future to prevent a recurrence. A special committee of the board is appointing an independent global accountancy firm to conduct an independent review and an international law firm to assist in analysis of the transactions.”

Meanwhile, the board has appointed Hisham Ashour as CEO of the company effective October 11.

Ashour recently joined as Deputy CEO and has many years’ experience in regional and international financial management.