The Troubled Saudi contractor Mohammed Al Mojil Group has announced the resignation of its board with immediate effect, days after the firm’s chairman Mohammad Al Mojil and his son were sentenced to five years in prison for misrepresenting the company’s value.
Saudi Arabia’s Capital Market Authority’s Committee for the Resolution of Securities Disputes (CRSD) also imposed a 1.6 billion riyal fine on the construction firm, whose shares have not traded since 2012. The company accumulated large losses while trying to take advantage of a housing boom in the country.
A third unnamed executive was given a prison sentence of three years.
“The board maintains that at all times MMG implemented its internationally recognised accounting principles in accordance with Saudi law,” MMG said.
“Were the same international standards to be applied to other firms operating in the same sector, one would observe losses and provisions of a far greater magnitude than those seen at MMG.”
The company attacked the CRSD’s rulings, claiming they were “based on evidence that has been shown to be fundamentally flawed.”
The CRSD announced on Sunday that it was banning the accountancy firm Deloitte from providing accounting services in Saudi Arabia for two years, following its involvement with the company.
The regulator suspended the firm from providing auditing services to listed firms since June last year as part of its investigation into MMG’s activities.
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