DAMMAM, Kingdom of Saudi Arabia, June 20, 2016 /PRNewswire/ --
The board of Mohammad Al-Mojil Group (hereafter MMG) announces that, on Ramadan 13, 1437 (corresponding to 19/06/2016) the entirety of the board has resigned with immediate effect.
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.
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.
In addition, an anticipated SAR 950 million may be reclaimed, with the support the outgoing board secured from Saudi Aramco (the projects' owner), from MMG's work on the following project: Karan Utilities & Co-Generation, Manifa Co-Generation & Main Substations, the King Abdullah Petroleum Studies and Research Center (KAPSARC) - Residential Package A&B & Associated Infrastructure, the Wasit Gas-Program-Inlet & Gas Processing Plant and the King Abdullah University for Science and Technology (KAUST).
The board was influential in the preparation of a capital-restructuring plan which was to be instigated under the newly updated regulations. The plan presented a significant opportunity for MMG's return to trading and a relisting of the company's shares.
The board has always enshrined its employees' rights at the heart of the Company, ensuring the implementation of international best practice.
Under the board's watch, MMG has stabilized its operations with the company's critical suppliers. The board has resolutely defended MMG in the event of any legal action against it and the company has been winning favorable judgments for the first time in a number of claims the outgoing board brought against trade debtors. The board has acted at all times in accordance with all relevant laws and authorities.
The sudden and unexpected decision by the Committee for the Resolution of Securities Disputes dated Ramadan 12, 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 decision to resign is, in part, due to their serious concerns about the unlimited director and executive liabilities in the Kingdom of Saudi Arabia. These concerns have been clearly highlighted by recent announcements by the Capital Market Authority.
The board maintains that at all times MMG implemented its internationally recognised accounting principles in accordance with Saudi law. 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.
Recent events highlight 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.
Finally, the board would like to take this opportunity to thank its employees for their work to date, wishing them and the company success in the future.
For further information contact Project Associates on:
Tel + 44-20-7321-0773 or Al-Mojil@projectassociatesltd.com
SOURCE The Board of Mohammad Al-Mojil Group