Galfar 'aware of responsibility' to stakeholders
Firm revising internal controls, including whistle blowing policy
Galfar Engineering & Contracting, the Oman-based company whose co-founder Dr P Mohamed Ali was sentenced to three years in prison in a corruption crackdown recently, has said it is "fully aware of its responsibility towards all stakeholders", having revised its management's Manual of Authority.
In a newly-filed management report accompanying the firm's filed 2013 financial accounts, chief executive Dr Hans Erlings confirmed that "certain shortcomings came to light which required that adequate controls are put in place" during 2013.
He confirmed that KPMG had been appointed to review and advise on the adequacy of its internal controls, including its whistle blowing policy.
Dr P Mohamed Ali resigned from Galfar's board after being sentenced to three years in prison and fined $1.6mn (OR600,000) after a court found him guilty of bribing a member of the finance ministry responsible for overseeing the tenders contracts on behalf of state-owned oil company Petroleum Development Oman.
He has maintained his innocence and stressed he will appeal the verdict.
During 2013, the company saw its revenues top the $1bn mark, increasing by 22% to $1.07bn (OR412.4mn) from $874.5mn (OR336.5mn).
Net profits fell to $19.7mn (OR7.6mn), down 17% on the $23.9m (OR9.2mn) achieved in 2012.
Dr Erlings said that the outlook for Oman's construction industry is "brighter than ever before".
The firm won $441.6mn (OR170mn) of new projects in 2013, bringing its total pipeline to $1.58bn (OR610mn).
"There are several projects in the tendering process where we expect positive results in some of them in our favour," he added.