Business


Galfar MD quits; appoints audit firm to establish accountability


A picture of the company's logo. - Supplied photo

Muscat: The managing director of Galfar Engineering and Contracting has resigned from the company's board as well as his position as the managing director, following an Omani court convicting two of the company's top officials on bribery charges on Sunday.

The resignation of the top-level official, who has a combined stake of 19.9 per cent in Galfar, follows an emergency board meeting on Tuesday.

The board has been under pressure to take immediate steps to clear the premier construction company's image and to announce a succession plan.

He resigned from his position as the managing director of the company since it was linked to his position as a member of the board. The erstwhile managing director's association with the company is four decades old, ever since the company's inception. His name has remained synonymous with the company's name.

Listed by 'Arabian Business' magazine as being among the most influential Indians in the Middle East, the managing director developed Galfar from a small contracting firm to a leading regional player in multi-disciplined engineering, contracting and construction firm over the last four-and-a-half decades.

Further, he is considered a leader in the construction field and a successful non-resident Indian (NRI) businessman, not only in Oman, but also in the entire Gulf region. His rags-to-riches story has been an inspiration for many Indian entrepreneurs in the Gulf region.

"In the light of the court's decision against two senior members of the management and in the best interest of the stakeholders, the managing director has voluntarily resigned from the membership of the board of directors," the company said in a disclosure statement posted on the MSM website.

The board has taken the decision to ensure that the company's operations and businesses are not affected.

Policy review
The Galfar board also decided to appoint KPMG, an international audit firm, to "establish accountability" for the recent events, review the existing policies and procedures of the company and identify any gaps in the company's internal controls to ensure that weaknesses, if any, in the system are rectified.

KPMG will also review policies and procedures for the code of conduct, including "whistle blowing" to ensure compliance and train management staff for the implementation of the code of conduct in business dealings.

The board also communicated to the shareholders, employees, bankers, suppliers, government and non-governmental clients that effective controls are in place for good governance and well-being of the company and its stakeholders.

Market sources said that the managing director, who holds a combined 19.9 per cent ownership (including preferential shares) in Galfar, may not face any issue in holding the shares. The company's shares were traded without much fluctuation at 300 baisas on the Muscat Securities Market as buying support came from certain corners.

The managing director was sentenced to a three-year jail term and ordered to pay fines worth OMR600,000 following conviction for bribery charges. Galfar, which has an order book of around OMR600 million, has an annual turnover of $1 billion.

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It is indeed shocking to read and hear about the ordeals of one of the brightest star of Indian origin on Omani soil.

Dr.P.Mohamed Ali has worked tirelessly to get Galfar to where it today not to mention his vision and philanthropy for Oman and the people of Oman.In India too, he is dear to the poor and rich alike as he has always maintained his sense of humility, integrity and unmatched charity for the needy , never considering any other criteria except that of humanity.

In these challenging times we are are with you Dr.Mohamed Ali, and we earnestly pray for your troubles to end and for you to be able to continue to do your work for the lakhs of families who depend on you.

May Allah accept this prayer of ours..Ameen.





These all are just some tests from Allah...Our prayers are always with him.....In Sha Allah he will recover from all his problems soon...




This is all smelling funny. Almost seems like Galfar are being targetted. The corruption in the country was sown by the fat cat ministers who were incumbent for decades.. What about investigating lard laden contracts handed out to companies like Petrofac, TR, etc.. Why are Indians being made scapegoats in all this - is this cause they are easy targets to appease the mod?




I pray to my God to give this great person Dr.P. Mohamed Ali the justice. I beleive that his nobel activities which he has done and still continuing to the communities with the prayers of peoples loves him which wishes to see this Sun to shine again will save him from this affliction.




This certainly a way how the people in power treats innocent people. A person who has served the country so much, a Non-Omani who has been awarded the highest civil order being deported after serving the jail terms? That could the best award that you give a person who served Oman all these years. How can anyone think a founder and Managing Director cheat the Official who he have served whole heatedly. He could have done that long time back this is certainly an inhuman thought. Justice should not be denied to Mr. P. Mohammed Ali.

Culprits should be digged out from the roots maybe you will find even worse scenarios. Indian Government why do you stay quiet when Indians are being tarnished with these. They have played a role in the betterment of your country too. Why the hell are you sleeping. When will the Indian Government fight for the Indian Nationals, when will they protect the Indian Nationals who are staying and working hard for the betterment of their country. Its Pathetic India!!!





great steps baba


Any multimillion business has to be corrupt cuz money inevitably makes even a saint a devil...no intention of hurting any feeling ...am just saying thats all



Let us hope that justice is not denied to Mr P Mohammed Ali, and he gets a fair trial. When sheikh Salim was jailed for fourteen years, it was P Mohammed Ali who worked relentlessly and built GALFAR. He could have made personal gains in those years if he chose to, but the truth is that he did not. He is the only non- Omani who has been awarded the highest civil order in Oman. Indeed he has a credible legacy that is now tarnished thanks to a relentless system that fails to address the root of the problem and has found a scape goat in Mr P Mohammed Ali.

Perhaps those in power should scrutinize the system and go to the root of the matters instead of addressing the problem at a superficial level. There are several other companies in the list why is that only Mr P Mohammed Alis name is being taken?

Why is the PDO head maintaining a stiff silence? Surely there is more to the picture than what meets the eyes and (ears). Knowing that even an honest, philanthropic humanitarian like P Mohammed Ali is not safe from being misrepresented, It is indeed a discouraging message for all future enterprising entrepreneurs who wish to do something big in the Omani soil. I sincerely hope that justice is not denied to Mr P Mohammed Ali. Oman do not disappoint us.



It is indeed a prayer, rather than a comment, that the Almighty GOD will definitely not deny justice to D. P Mohammed Ali. The entire people of his village in Kerala is so shocked that, he has been so humanitarian to all of them and being responsible for their lively hood.