Saudi experts demand investigation into MMG’s financial downturn: Report

Several Saudi Arabian experts called for an investigation into the financial downturn of Mohammad Al-Mojil Group (MMG), according to a report published by Al-Jazirah newspaper.

The report quoted several experts calling for a thorough investigation that includes members of the MMG board, its certified accountants, and other officials from within the company.

The investigation would allow market regulators to take precautionary measures in order to protect the market and other companies from financial crisis.  

Saudi Shura council member Khalifa Al-Dosari called on company regulators to ensure the feasibility of investment opportunities for companies requesting approvals for initial public offerings, as well as their abilities to meet their obligations and challenges three years before the public sale takes place.

Meanwhile, economic expert Abdalrahman Sultan said that decisive actions must be taken in regards to the MMG crisis in order to restore confidence in the kingdom’s  companies.

He also called for an investigation into the actions of the company’s external auditor, who he said must be held accountable if found guilty of malpractice along with the executive management team, for the losses incurred by the company

The company, which was once a major oil and gas contractor in the kingdom, said in September that this year its accumulated losses as of Aug. 31 stood at 2.7 billion, according to data available on Argaam.

MMG shares have not traded on the Saudi exchange since July 2012.

Last week, the Capital Market Authority filed a lawsuit against the former executives of MMG accusing them of violating market regulations and standards, according to Argaam.