Deloitte: KSA ban limited to CMA-licensed entities
The two-year accountancy ban issued to Deloitte & Touche’s Saudi Arabian arm is restricted to CMA-licensed entities, a company spokesperson has told Construction Week
The two-year accountancy ban issued to Deloitte & Touche’s Saudi Arabian arm is restricted to CMA-licensed entities, a company spokesperson has told Construction Week.
The clarification pertains to the Capital Market Authority’s (CMA) decision to prohibit Deloitte from providing accountancy services in the kingdom for a period of two years, owing to its historic work with Mohammad Al-Mojil Group (MMG).
The ban was issued to Deloitte by the CMA’s Committee for the Resolution of Securities Disputes (CRSD) for breaching the rules of accumulated losses.
However, in a statement issued to CW, a spokesperson from Deloitte & Touche Bakr Abulkhair & Co noted: “The CRSD decision does not extend to audit services provided to other companies and entities not regulated by the CMA operating and doing business in Saudi Arabia.
“Nor does it extend to non-audit services, which include – but are not restricted to – consulting, tax, risk management, financial advisory, and all other advisory services provided to clients in Saudi Arabia, including listed companies and entities authorised by the CMA.”
Last week, the CRSD sentenced three MMG executives – including founder Mohammad Al-Mojil and his son Adel Al-Mojil – to prison terms for misrepresenting the companies value.
Previously, the CMA suspended Deloitte’s local arm from conducting auditing work for listed companies in Saudi Arabia for a period of two years, beginning 1 June 2015, according to news agency, Reuters.
The latest decision to prohibit Deloitte from providing accountancy services to CMA-licensed outfits represents the most severe penalty so far imposed on the company in relation to its work with MMG.