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Tue 16 Aug 2011 08:06 PM

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Only one Topaz official suspended over fraud, says Oman firm

Renaissance Services says other management changes due to business considerations, savings

Only one Topaz official suspended over fraud, says Oman firm
Renaissance posted a 77% plunge in first-half net profit to $5.84m and warned of "serious" issues in its Topaz unit

Renaissance Services said
on Tuesday that only one of the management changes at its unit Topaz Group,
which in March delayed a share sale in London, was linked to a financial
fraud.

The official
suspended was a junior level finance manager in an overseas subsidiary
of Topaz, and the departure of senior Topaz managers was due to business
considerations and cost saving, the company said in a
statement.

The amount that appears to be linked to the fraud
investigation is a portion of a total of $2.9 million over six and a half years,
Renaissance said.

The company
had said in a statement on Monday that top management left after it
“uncovered some serious issues” at the unit.

Topaz CEO Fazel Fazelbhoy stepped down in May after Renaissance, its
finance director and the chief operating officer of Topaz Engineering
also resigned, and the entire corporate human resources department was
removed, Renaissance said in a statement to the Muscat, Oman stock
market.

The company’s shares slumped 10 percent on Tuesday to close at 0.559 rial in Muscat, having also lost 10 percent the previous day.

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