The Saudi Capital Market Authority has confirmed jail terms and a SAR 1.6 billion fine in the case of financial irregularities at Saudi building contractor Mohammed Al Mojil Group (MMG).
A statement published on the Saudi Capital Market Authority’s website names nine defendants involved in the MMG case — including board members, senior executives and Deloitte — for violating articles of the Capital Market Law and Market Conduct Regulations.
The CMA said in the ruling that it is imposing various penalties over “illegal profits” and other irregularities during the builder’s initial public offering.
Penalties include a sanction of SAR 1.62 billion against Mr. Mohammad Hamad Al Mojil, former chairman of MMG, over “illegal profits” connected with the IPO. He is also subject to a five-year prison term, separate SAR 300,000 fine and a ban from working in listed companies for 10 years. Furthermore, a travel ban is imposed on Mr. Mohammad Hamad Al Mojil until the payment of both fines.
Mr. Adel Mohammad Al Mojil had his SAR 300,000 fine confirmed, along with a five-year jail term and 10-year ban on working in listed companies. In addition, a travel ban is imposed on Mr. Adel Mohammad Al Mojil until the payment of the fine.
Mr. Adel Mohammad AlMojil and his father Mohammad were earlier found guilty of manipulation and fraud related to Mohammed Al Mojil Group’s IPO in 2008, a decision the company earlier said was based on “fundamentally flawed” evidence.
The rulings prevent Deloitte & Touche Bakr Abulkhair and Company from providing any legal accounting service in Saudi Arabia for two years, in a ban that started in June 2015.
The other rulings concern the following persons:
- Fahad Ali Saad Al Raqtan: Fined SAR 300,000, imprisoned for three years, banned from working in listed companies for seven years.
- Jassim Mohammed Ali Al Ansari: Fined SAR 300,000, banned from working in listed companies for five years.
- Abdullah Mohammed Saad Al Hariqi: Fined SAR 300,000, banned from working in listed companies for five years.
- Zaki Mansour Ahmed AbuAlsaud: Fined SAR 300,000, banned from working in listed companies for five years.
- Ahmed Nasser Yaqoub Al Suwaidan: Fined SAR 300,000, banned from working in listed companies for five years.
- Baker Abdullah Abu Alkhair: Fined SAR 300,000, banned from providing any legal accounting for authorized persons, or any securities’ issuer for a period of two years, in a ban starting in 2015.