Galfar Engineering to hold board meeting in wake of convictions

14 January 2014

Two executives were sentenced on corruption charges

Oman’s Galfar Engineering has announced it will hold an “urgent” board meeting to develop an action plan in the wake of a court ruling on Sunday in which two of its employees were convicted on charges of corruption.

The Court of First Instance in Muscat sentenced the company’s managing director, Mohammed Ali, to three years in prison and another company official, Abdullmajeed Nushad, to two years in jail. Ali was ordered to pay RO600,000 ($1.6m) in fines, while Nushad was fined RO200,000.

Ali and Nushad, who hold Indian citizenship, are to be deported after they serve their sentences.

The verdict was the first in a series of trials that are under way involving executives from Oman’s oil industry and related sectors, who face charges of offering or accepting bribes in exchange for contracts, mostly in infrastructure projects.

“The board of directors of the company will convene an urgent board meeting to review the situation and formulate an urgent action plan to ensure the firm’s operations are not affected by the said primary court’s judgement,” Galfar Engineering said in a bourse filing yesterday.

The statement added that the defence lawyers would be appealing the judgement.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.