{"id":3244,"date":"2025-08-10T07:55:00","date_gmt":"2025-08-10T03:55:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/economy\/fsa-appeals-sweets-oman-verdict\/"},"modified":"2025-08-10T12:37:20","modified_gmt":"2025-08-10T08:37:20","slug":"fsa-appeals-sweets-oman-verdict","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/economy\/fsa-appeals-sweets-oman-verdict\/","title":{"rendered":"FSA Appeals Verdict in Sweets of Oman Case: Key Implications for Investors and Business Owners in Oman"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitv3sog-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitv3sog-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitv3sogw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitv3soga{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitv3soga:hover{border-color:#dc262688}\r\n.hitv3sogg1{position:absolute;inset:0;background:radial-gradient(ellipse at 50% 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p><\/p>\n<p><strong>MUSCAT:<\/strong> The Financial Services Authority (FSA), the regulator overseeing Oman\u2019s capital market and insurance sector, has filed an appeal against a Primary Court ruling in Muscat that acquitted three board members of the publicly listed company, Sweets of Oman, while imposing hefty financial penalties on one board member and several executive management staff in an embezzlement case.<\/p>\n<p>The appeal, submitted on July 29, 2025, challenges the Primary Court\u2019s decision dated June 30, 2025. The case involved members of Sweets of Oman SAOG\u2019s Board of Directors during their 2017-2019 tenure, alongside some executive employees, concerning serious criminal violations that caused financial harm to the company and its shareholders. The violations were attributed to one board member working in collusion with several executives.<\/p>\n<p>The court ordered certain board members and executives to repay RO 5 million to the company and its shareholders and to bear court fees and expenses. However, it acquitted three board members, citing no proven causal link between them and the financial damages.<\/p>\n<p>This acquittal has now been contested by the FSA through its recent appeal.<\/p>\n<p>The court\u2019s ruling was based on findings that the company\u2019s losses stemmed from gross negligence in the board\u2019s legal and oversight responsibilities, including: failure to supervise bank loans and approval of loans without proper feasibility assessment or accurate recording; endorsement of financial statements without internal audit verification alongside fictitious inventory reporting; unauthorized addition of financial assets lacking legal backing or clear funding sources; neglect in applying policies for writing off doubtful debts in accordance with International Accounting Standards; and indications of collusion among certain executives to inflate revenues and understate liabilities. The Audit Committee was also found lacking in its governance duties.<\/p>\n<p>The FSA emphasized that these actions led to the presentation of misleading financial data, damaging the company\u2019s financial standing and shareholder interests.<\/p>\n<p>This ruling underscores the Omani judiciary\u2019s position on the personal liability of board members in public joint-stock companies, extending accountability up to five years post their term, as per Article 18 of the Commercial Companies Law.<\/p>\n<p>The FSA highlighted the importance of board members performing their oversight roles diligently\u2014providing competent guidance to executive management while avoiding overreach or neglect\u2014to protect financial processes and shareholders\u2019 rights.<\/p>\n<p>Article 206 of the Commercial Companies Law reinforces this stance, holding board members jointly liable for damages caused by unlawful actions, exceeding authority, fraud, forgery, or negligence in their duties.<\/p>\n<p>The court\u2019s decision consolidated two lawsuits: one filed by the FSA in December 2022 and another by major shareholders in July 2023.<\/p>\n<p>The FSA reaffirmed its commitment to governance, transparency, and accountability, pledging ongoing regulatory vigilance to ensure compliance by companies and their boards under its oversight, drawing on its authority per Commercial Companies Law No. (18\/2019), including Article 207.<\/p>\n<p>The Authority calls on all stakeholders to adhere strictly to laws and regulations and to avoid practices that could compromise market integrity or harm shareholders and investors.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/p>\n<p>The FSA&#8217;s appeal against board acquittals in the Sweets of Oman embezzlement case underscores <strong>heightened regulatory scrutiny and accountability for corporate governance<\/strong> in Oman\u2019s public joint-stock companies. This signals <strong>both increased risks for board members and opportunities for investors to demand stronger oversight and transparency<\/strong>. Smart entrepreneurs and investors should prioritize <strong>rigorous compliance and governance frameworks<\/strong> to safeguard stakeholder interests and mitigate legal and reputational risks.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Services Authority (FSA) in Oman has appealed a Primary Court ruling that acquitted three board members of Sweets of Oman in an embezzlement case. The court upheld penalties on one board member and several executives for financial violations harming the company and shareholders.<\/p>\n","protected":false},"author":31,"featured_media":3245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[482],"tags":[1133,301,161],"class_list":["post-3244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-corporate-governance","tag-financial-services-authority","tag-oman"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2025\/08\/3095201.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/3244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=3244"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/3244\/revisions"}],"predecessor-version":[{"id":3246,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/3244\/revisions\/3246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/3245"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=3244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=3244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=3244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}