“Returning what has been entrusted to you is the key for blessings,” Commander of Believers Ali bin Abi Taleb — may Almighty Allah be pleased with him.
Therefore, the board opened two very important files: the first was about subsidiary and sister companies, and the second was about bank debts.The initial decisions taken by the Administrative Board were merely sedative measures. The Board of Directors was fully aware that these measures had temporary effect only and there was dire need for continuous positive efforts in rescuing the company from collapse.
The actual rescue mission kicked off by looking into subsidiary and sister companies, listing down pros and cons of such commercial offshoots. This led to looking into profits and losses recorded in the official budget in the past three fiscal years before the crisis. This operation was aimed at determining the veracity of recorded data, followed by analysis and then setting up desired solutions.
Through a quick glance at the record, it turned out the figures did not add up. After perusing the entire data in the budget, it became clear that there were administrative and financial lapses. The solution would lead to accusations which would mire the integrity and credibility of those who contributed in filing such data.
This has prompted the Board of Directors to send those under suspicion of breach of trust to the office of the CEO of the group of companies with the recommendation to conduct quick legal investigation which could result to indictment of some employees.
Indeed, the involved officials were suspended pending investigation and they were immediately replaced as per the recommendation of the Executive Director who is also a board member of the company in question.
The internal audit of the involved companies revealed that most of the information on paper contradicted reality, while verbal transactions between officials dominated the records — a clear indication of corruption.
Imagine that in the records, one of the real estate companies incurred losses for three years and it did not distribute profits throughout this period. At the same time, records show that their buildings were continuously occupied.
The excuse given by investigated officials was that the financial returns generated by the real estate properties of this company were deposited in bad investments. The investigation also revealed that part of these returns was registered under individual names, not companies.
Interestingly, the funds registered under individual names generated reasonable profits, but those under company names incurred unreasonable losses.
This is a clear manifestation of the wickedness which infested some officials in the collapsing company. More will come in the next article.
By Yousef Awadh Al-Azmi