Damas CEO Resigns After Disclosing "Unauthorized Transactions"

In 2006, Tawhid Abdulla (left) received a Businessman of the Year award from HH Sheikh Hamad Bin Zayed Al-Nahyan

Dubai based jewelry chain Damas accepted the resignation of its CEO and Managing Director Tawhid Abdulla, who resigned after disclosing "unauthorized transactions," worth as much as $165 million.

Damas, which is listed on NASDAQ Dubai, said Deputy CEO Hisham Ashour is to replace Abdulla at the post. Abdulla’s brother Tawfique is to remain as non-executive chairman and assume the day-to-day responsibilities as managing director.

Trading in the company’s stock on the NASDAQ Dubai market was suspended at the request of the company on Sunday, when the shares stood at 37 US cents. At publication time, shares of the stock had not resumed trading, and were down 13.5 percent to 32 US cents per share.

The report did not mention if the third Abdulla brother, Tamjid, is remaining as deputy managing director of the company.

In an emailed statement, Damas said the Abdulla brothers "fully stand behind the company and have agreed to commit the necessary assets to secure and repay in full any unauthorized transactions."

Abdulla confirmed the information in the statement, telling Reuters: "Whatever is in the announcement, I'll stick to the announcement." 

The company operates about 450 stores across the Middle East, selling jewelry and watches.

In 2008, Damas raised $270.6 million through an initial public offering, majority control of the company remains with the Abdulla brothers.