Adel Al-Mojil sympathises for MMG smaller shareholders
Posted on 30th September 2016
Adel Al-Mojil has “great sympathy” for Mohammad Al-Mojil Group’s (MMG) smaller shareholders.
Speaking in a video statement shared exclusively with Construction Week, Al-Mojil said that smaller shareholders have been “most deeply affected” by the decision of Saudi Arabian authorities to freeze MMG’s shares.
Adel Al-Mojil, son of the contractor’s founder Mohammad Al-Mojil, also expressed his regret that MMG’s management lacked the necessary experience to deal with financial pressures.
“After [MMG’s IPO and] the global financial crisis of 2008, the whole construction market was hit,” he explained. “There were serious deficiencies in our primitive contracts in Saudi Arabia.
“It’s deeply regrettable that the management of MMG, following the IPO, was simply not experienced [enough] or able to deal with the pressures that hit [the company]. We were the first and we were the most high profile. But looking around the sector today, it seems that there are no management teams able to cope with the issues faced by the construction sector.
“The biggest impact was on our reputation: on MMG and my family. But the people who have been most deeply affected by the freezing of the shares by [Saudi Arabia’s Capital Market Authority (CMA)] are the smaller shareholders, and I have very great sympathy for them,” said Al-Mojil.
In June 2016, Adel and Mohammad Al-Mojil were each sentenced to five years’ imprisonment by the CMA’s Committee for the Resolution of Securities Disputes (CRSD) for misrepresenting the contractor’s value.
Messrs Al-Mojil strongly deny any wrongdoing, and claim that they have been scapegoated for wider problems within the kingdom’s construction sector, according to Constructionweekonline news report.
“Treating me and my father as scapegoats when we have done nothing wrong, for something that is a much larger problem that affects the whole construction sector, is both unfair and unjust, and does nothing to help solve the very grave problems challenging everybody,” commented Adel Al-Mojil.
“Looking now at Saudi Oger, [Saudi Binladin Group,] and many others, these are not public companies so they did not have to file – as we did – public financial statements. It is clear now that they have been facing the same problems,” he continued.Back to all Construction News
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