KPMG accomplices in Dubai request that nearby authority be suspended

KPMG accomplices in Dubai | The leadership at KPMG’s United Arab Emirates division has been called into question due to allegations of nepotism, cronyism, and a culture of fear allegedly fostered by the chief executive, according to a group of senior partners at the company.

The requests were outlined in an email sent to several of KPMG International’s senior executives, and they include a request that KPMG International parachute in a temporary chief executive from the company’s global operations.

The email claims to reflect the opinions of ten capital partners at KPMG Lower Gulf and was sent to recipients that included KPMG International chair Bill Thomas, vice-chair Carl Carande, global general counsel Anne Collins, and global head of people Nhlamu Dlomu.

It draws attention to a number of accusations levelled at Lower Gulf CEO Nader Haffar and his executive team, including the fact that they hired his brother-in-law last year without telling partners about their relationship. The Abu Dhabi National Oil Company, as well as the sovereign investment funds ADQ and Mubadala, are among the 3,400 clients of KPMG Lower Gulf.

The partners request that KPMG International send an intervention team to help the company deal with the “huge catastrophe” that is growing within the local firm. KPMG International opted not to respond.

In the email, they accuse Haffar of surrounding himself with friends in influential positions and creating a “fear culture” where many partners are hesitant to express “dissenting ideas” for fear of losing their jobs.

They further demand the board be suspended, claiming that the board’s independence is being compromised by several independent directors’ extremely high compensation of $500,000 or more.

The memo advises KPMG International to appoint an acting chief executive from the global organisation and create an impartial committee to evaluate Haffar’s performance.

The partners also raise worries about declining profits, which have reduced their compensation. According to the email and current and former partners, average profits per partner were over $800,000 at the beginning of Haffar’s stint as KPMG Lower Gulf chief executive in 2018. For 2022, this is expected to drop to $450,000 per couple.

According to the email, partner bonuses for 2021 have not yet been paid in full due to “cash flow concerns.”

They put the responsibility for the fall in profitability on Haffar’s lack of “commercial acumen,” the appointment of high-priced senior staff who increased overheads without boosting profitability, and costly PR initiatives intended to improve the CEO’s reputation in the area.

Their email also highlighted KPMG Lower Gulf’s April donation of over $272,000 to the One Billion Meals campaign, a project started by the philanthropic foundation of the UAE prime minister to combat world hunger.

An ex-partner called the donation, which was widely reported, a “exceptional philanthropic contribution for a firm our size” and “extremely unique,” adding that it was made with the intent of supporting Nader rather than furthering economic interests.

KPMG Lower Gulf expressed its pride in the contribution that the business and more than 300 of its employees contributed to the UAE’s “1 Billion Meals” project. This contribution’s size was comparable to that of numerous other national and international brands.

As a feature of the CSR drives under Staff Wellbeing and Prosperity, KPMG is sans streaming activity meetings for its representatives to remain fit while telecommuting. This has additionally been stretched out to workers of client organizations. KPMG additionally led free live instructional courses, ‘Ask the KPMG master,’ for client representatives. The association’s experts led LinkedIn meetings on private marking, with extra meetings arranged.

KPMG’s current circumstance centered CSR measures incorporate the transition to new workplaces at One Focal in Dubai – an economically planned, canny work area which is conjecture to save 60% in power use and 35% in water utilization because of energy-productive fittings and decorations. The new area additionally incorporates reusing offices and is available by green vehicle.

Peter Haugaard, Head of Individuals, Execution and Culture at KPMG Lower Inlet, remarked: “KPMG Lower Bay’s CSR methodology was recharged fully intent on conveying worth to society. The quantifiable, substantial drives we embrace build up our obligation to supporting and safeguarding our networks – during the Covid pandemic, yet in the long haul.”

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