OIA Welcomes State Audit Findings: Key Insights for Strengthening Business Compliance in Oman
Oman Investment Authority Commends Audit Body for Promoting Transparency
MUSCAT, OCT 20 – The Oman Investment Authority (OIA) has praised the State Financial and Administrative Audit Authority for its ongoing efforts to enhance transparency, accountability, good governance, and the safeguarding of public funds.
In response to the release of the annual report from the State Audit on Sunday, the OIA emphasized its strong commitment to governance principles. The Authority stated, “We greatly value the insights provided by the State Financial and Administrative Audit Authority regarding the OIA and some of its subsidiaries, as highlighted in the community summary of its Annual Report for 2024.”
In a formal declaration, the OIA reiterated its dedication to collaborating closely with the Audit Authority to address all identified observations rigorously and responsibly. It emphasized that necessary corrective actions will be taken to tackle the root causes of these issues, in full compliance with relevant policies and regulations, and in accordance with the Unified Governance Charter for OIA-affiliated companies issued in 2022.
The OIA’s extensive audit framework consists of four critical components:
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Internal Audit Unit: An independent entity reporting directly to the Audit and Risk Committee of OIA’s Board of Directors, ensuring adherence to approved policies and controls across all OIA activities.
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External Auditor: Selected by the Board of Directors to perform audits in line with the highest international standards.
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Audit and Risk Committee: Responsible for overseeing audit functions, reviewing financial statements, and monitoring the enterprise risk management framework, reporting directly to the Board.
- State Financial and Administrative Audit Authority: Functions independently, exercising its oversight role over the OIA and its subsidiaries according to its legal and regulatory mandates.
Furthermore, the OIA has introduced several measures to strengthen governance. These include:
- Ongoing development of regulations and policies to ensure procedural integrity and prevent potential violations.
- Implementation of an integrated whistleblowing system to report misconduct while ensuring confidentiality for whistleblowers.
- Evaluation of the effectiveness of Boards of Directors in contributing to strategic goals, governance performance, and annual target achievement.
- Enhancement of the governance framework, including the Governance Charter and associated policies.
- Addressing the observations raised by the State Financial and Administrative Audit Authority by participating in reviews, taking necessary administrative actions against confirmed violations, and executing financial and operational restructuring plans for subsidiaries to enhance efficiency and profitability.
Since 2014, the OIA has maintained a whistleblowing system designed to handle misconduct or inappropriate practices confidentially. This system offers secure and accessible channels for reporting financial or administrative violations, including a dedicated call center (80000900) and an email address ([email protected]).
Special Analysis by Omanet | Navigate Oman’s Market
The Oman Investment Authority’s commitment to enhanced transparency and governance signifies a positive shift for businesses in Oman, fostering a more stable investment climate. This creates opportunities for foreign investors seeking a reliable market, but also underscores the need for companies to align with stringent governance standards to mitigate compliance risks. Smart investors should consider leveraging the robust audit frameworks introduced by the OIA, as these enhance the feasibility of sustainable and profitable engagements in the region.