The business world has taken and may still taking its shape regarding the corporate governance concepts, principles and practices. During the academic and research period (late 1998-late 2001), I witnessed the sharp rise of the stock market in the wall street and those of mercantile and options in Chicago. It was apparent to me then that what was going on is not investment as we studied and learned. Gambling is the least to say and characterizes all what was going on.
One day in February 2000, I asked one of my accounting professors about the logical reason(s) and explanation ( the rationale) that underly the disallowance of expensing the stock options granted to corporate senior management. I was shocked when she told me in a very simple , crystal and clear Midwestern accent " the U.S Congress". My surprise came on the basis that this should not be the case in the USA where the law and the best knowledge and expertise. Since then, I was advised by another professor of mine who is a well known business strategist to research and study the testimonies and presentations of Dr. Ralph Nader, the fighter against the interests groups in the US. I do understand the issue that a reader of these lines may pose, what is the relationship of all of this and the corporate governance and Palestine in specific?
In my opinion, the corporate governance concept is not a new in its existence but the concept took its sharp shape, forms and principles after the series of business failures in the corporate of the US reaching its peak with the collapse of Enron and their then auditors Arther Anderson. As a result, the Sarbanes-Oxley Act of 2002 law came in to start a new era in the corporate business of America. Though we currently have vast literature written about this law and its impacts on the accounting and auditing professions, several interested parties started to remove the dust away from the corporate governance concepts as well as the internal control systems and concepts as well. These are not the only consequences as a result of this law. There were several questions that I had in my mind then after all the series of these business failures and SOX law, but the primary and most important one was the following: What I and other professionals who share with me these concerns should do to help Palestine avoid such perils and build healthy corporate environment and practices to build our economy?
Why Palestine? Simply, it is my country and the only country on this planet I will always patriotically serve. To professionally and effectively address issues such as corporate governance, one should have patriotic vision and courage. Because I am a refugee from Haifa, I am not allowed to professionally discuss too many issues in other countries such as corporate governance and internal control. However, I and other Palestinian professionals -academicians, scholars and researchers- must and should find the best ways to promote and provide adequate awareness to the interested parties regarding such sensitive subject. Therefore, I will be publishing on my blog a quarterly opinion starting from October 1, 2008 regarding the corporate governance in Palestine that I hope will help in stimulating others to collaborate with me reach for the objectives I will list in my next blog-August 08-.
Mohammed J. Masoud CPA, CFE, CICA, MBA
Prisedent and Managing Director
Birzeit Consulting
mmasoudcpa@bzconsult.com
