Mohammad Al-Mojil Group’s (MMG) board has issued a statement declaring that the entire board has resigned with immediate effect following the decision by Saudi Arabia’s Committee for the Resolution of Securities Disputes (CRSD) – part of the Capital Market Authority (CMA) – to impose prison sentences and hefty fines on several of MMG’s corporate members.
“From its appointment, the MMG board has worked tirelessly towards achieving the greatest success for the Company and its employees during particularly challenging market and company conditions resulting in the Company reporting a net profit in the first quarter of this year - its first ever since 2012. Due to the board's actions, MMG has re-established itself as a prominent competitor and leading contractor in Saudi Arabia. The sector has seen significant turmoil in recent years, and major competitors such as the Saudi Binladin Group and Saudi Oger Ltd have suffered massive losses and layoffs as a result,” MMG wrote in the statement. “Substantial losses have been recuperated by this board, including the settlement of legacy contracts such as the Ibn Rushd claim which is valued at SAR 40 million.”
The statement noted that the “sudden and unexpected decision by the Committee for the Resolution of Securities Disputes dated Ramadan12, 1437 (corresponding to 18/06/2016), which was based on evidence that has been shown to be fundamentally flawed, has severely impacted on the board's capability to deliver the Company's strategy”.
The board stated in the press release that recent events in Saudi Arabia have highlighted the “dire need for a systematic and far-reaching overhaul of the construction sector in the Kingdom of Saudi Arabia, as well as the regulations which govern these firms”.
According to the statement, the board maintains that at all times MMG implemented its internationally recognised accounting principles in accordance with Saudi law.
By Georgina Enzer
