Mobily’s suspended CEO, Khalid Al-Kaf, to Sue the company for libel

Khalid al-Kaf, the former CEO of Etihad Etisalat Co who was suspended  amid auditing errors scandal, plans to sue the company for libel and other personal and professional damages, he said in a statement.

The board use of defamatory and judgmental language when it announced its decision to start investigating the auditing errors gave the impression that Mr Al-Kaf was to blame before the auditing committee completed its independent investigations.
 

Mobily suspended Mr al-Kaf effective Nov 21. Deputy CEO Serkan Okandan took over as CEO as the company appointed an auditing  committee to investigate the financial results.

The company said an error in the timing of revenue recognition from a promotional  program affected the financial statement of 2013.

Errors related to the releasing of its fiber-optic communication network has also affected the results in the 6 months to June 2014. 

The Saudi stock market regulator has temporarily  suspended the company, an affiliate of UAE’s Etisalat, to prop the disclosures. Mobily’s 3rd quarter profit plummeted more than 70 percent.