The global financial crisis has exposed serious flows in companies in the Gulf oil exporters as some of them did not enforce governance and others had unqualified management, the region’s private sector leader said on Saturday.
Some firms in the six-nation Gulf Cooperation Council (GCC) also had flawed auditing systems and failed to assess risks spawned by the crisis, said Abdul Rahim Naqi, Secretary General of the Dammam-based Federation of the GCC Chambers of Commerce and Industry (FGCCI).
In a statement sent to Emirates 24/7, Naqi urged participants in next week’s international governance conference in Bahrain to issue proposals calling all regional firms to abide by governance laws to avert fresh crises.
“The global crisis which has jolted world economies in general and Gulf economies in particular has exposed the failure of some GCC companies to abide by governance principles,” he said.
“At the same time, the crisis has shown the inefficiency and short-sightedness of the boards of directors of some firms…it has also proved the failure of auditing systems at some companies, non-compliance with governance principles and failure to assess risks and financial and administrative malpractices…this has created a crisis of confidence between these firms and clients".
Emirates 24|7
