Damas to investigate alleged unauthorised transactions

13 October 2009

Chief of jewellery retailer resigns after stock market disclosure

Dubai-based jewellery retailer Damas plans to appoint an auditor to investigate alleged unauthorised transactions totalling about $165m, according to the company.

The appointment of an auditor follows the announcement late on 12 October that Tawhid Abdulla, the chief executive officer (CEO) of Damas, had resigned “due to his disclosure to the board of what is understood to be unauthorised transactions conducted by him,” according to a statement published on the Nasdaq Dubai Stock Exchange.

Abdulla has since denied any involvement in the transactions.

Damas’ deputy CEO Hisham Ashour has replaced Abdulla as CEO. The company also said it would appoint an international accountancy firm and law firm to review the transactions.

The firm said it would repay any unauthorised transactions and said it had adequate funds to do so.

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