Shura reviews corporate governance charter

MUSCAT: Members of Majlis Ash’shura were briefed about the corporate governance charter recently issued by Oman Investment Authority (OIA), on Monday.

Nasser bin Sulaiman al Harthy, Acting Vice-chairman of OIA, presented a visual display explaining that OIA, established by Royal Decree 61/2020, aims to supplement the state’s general budget with revenues, manage and develop the Sultanate of Oman’s funds and assets, achieve financial reserves and savings, as well as execute government policies to advance targeted economic sectors and contribute to improving the investment environment and attracting investments to the Sultanate of Oman. A number of programmes that the OIA is currently implementing were highlighted within the framework of the governance of subsidiaries, including the rationalisation programme of salaries and benefits and the Rawabet programme.

The presentation made reference to the policies related to corporate operations including the procurement and tender policy aims to maximising the local added value, empowering small and medium enterprises, supporting Omani products and enhancing the role of the private sector.

The members of the Majlis

Ash’shura raise inquiries about the role of the governance charter in improving companies’ performance and boosting the state’s general budget, and the extent to which the charter takes into account the nature of companies associated with the OIA and the flexibility in reviewing policies in line with the privacy of each company.

The members inquired about the need for a law regulating the work of companies affiliated with OIA, the extent of corporation commitment to implementing governance policies, and the measures that need to be taken in case of non-compliance with the policies and regulations.

Reference was made to the issue of overlapping specialisations in some institutions and the possibility of merging some of them was discussed.

The members also inquired about the strategic plans that the OIA’S subsidiaries are working on in light of the global political changes especially with regard to food security.

The members of Majlis Ash’shura emphasised the issue of adopting a clear policy on dividend distributions and disclosure. They also wondered whether the implementation of corporate governance policy can do away with oversight conducted by other institutions including Majlis Ash’shura.

The OIA specialists emphasised that the corporate governance charter aims to regulate the work of these institutions, improve their performance, and align their plans with sustainable development plans in a bid to strike a balance between the economic and strategic goals and to encourage the efficient use of financial and human resources. It also aims at promoting the principle of accountability as the charter included policies and guidelines for various operations and activities carried out by the OIA’S subsidiaries.