Saudi Arabia: Al-Mojil family slams CRSD judgement
Saudi Arabia’s Al-Mojil family has criticised the CRSD’s decision to impose prison terms on three members of kingdom-based contractor, Mohammad Al-Mojil Group (MMG)
The Al-Mojil family has criticised the decision of Saudi Arabia’s Committee for the Resolution of Securities Disputes (CRSD) to sentence three members of Mohammad Al-Mojil Group (MMG) to prison.
A statement released on behalf of the Al-Mojil family in response to the CRSD judgement described the ruling as “unprecedented” and “fundamentally flawed”.
Last week, the CRSD, which forms part of the kingdom’s Capital Market Authority (CMA), imposed prison terms on three of MMG’s members, including founder Mohammad Al-Mojil and his son Adel Al-Mojil.
The CMA is also reported to have banned the local arm of Deloitte & Touche from providing accountancy services in Saudi Arabia for a period of two years, owing to its involvement in the MMG case.
Mohammad and Adel Al-Mojil were each sentenced to five years in prison for misrepresenting MMG’s value. A third unnamed executive from the contractor received a three-year prison sentence, according to news agency, Reuters.
Criticisms contained within the statement issued by MMG’s founding family centre on a report compiled by financial consultancy, Protiviti Member Firm (Middle East) Ltd.
The statement read: “Messrs Al-Mojil believe that the charges and the investigation process were defective from the start, relying almost exclusively on a report prepared by [Protiviti].
“Messrs Al-Mojil have brought legal proceedings against Protiviti in relation to their report. They allege that Protiviti lacked even a licensed capacity to undertake the work. Furthermore, they allege that the report contains significant material errors, misrepresentations and untrue statements, and is defamatory, making arbitrary and unproven allegations. These proceedings are currently ongoing in the DIFC [Dubai International Financial Centre] Courts.”
The statement also claimed that, in the 16-month period between the issuance of the Protiviti report and the Saudi Arabian regulator’s subsequent charges, Mohammad and Adel Al-Mojil were never formally interviewed by the CMA.
The statement continued: “[Messrs Al-Mojil were not given] a chance to comment on the report’s findings. There has been a fundamental and deliberate lack of due process throughout.”
The Al-Mojil family’s correspondence added that the DIFC proceedings would have “a critical impact on the validity of the CMA’s charges”.
Mohammad and Adel Al-Mojil intend to appeal their sentences.
Construction Week has contacted Protiviti for comment, but has yet to receive a response.