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The head of KPMG in Dubai has announced his resignation after allegations of nepotism, cronyism and partner discontent led to internal turmoil at the firm, the Financial Times (FT) reported on Wednesday.
Nader Haffar is reported by the FT to have decided to step down, citing the need to protect the interests of the firm, its clients and colleagues.
Haffar, chief executive and chair of KPMG, will leave at the end of the year, the FT report said.
KPMG released a statement saying it had initiated two resolutions, to start a voluntary CEO election process, which had been proposed by Haffar and to continue a full governance review process overseen by an independent global law firm, with both to be completed by the end of 2022.
The firm said the decision by Haffar not to stand was driven by his desire to quell these distractions and protect the interests of the firm, its people and clients.
Haffar added: “The current speculation about various issues related to KPMG Lower Gulf’s governance is a distraction for the firm, unsettling for our people, and has an impact upon the firm’s reputation.
“For these reasons I will not stand as a candidate in the leadership election process.
“KPMG Lower Gulf is a great firm and full of amazing talent. I am very proud of what we accomplished over the last five years and believe the future will be brighter. My decision will help to ensure that future.”
KPMG International said: “We respect Nader Haffar’s decision and understand his reasons for making it. We wish him all the best in his future endeavours. KPMG International will continue to work with and support the Lower Gulf firm at this time, helping to ensure a smooth handover following the election.”
(Reporting by Imogen Lillywhite; editing by Daniel Luiz)
