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Mon 20 Jun 2016 03:41 PM

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Board of Saudi’s MMG quits after three sentenced

Stock market regulator fined MMG $427 million (SR1.6 billion) in early June

Board of Saudi’s MMG quits after three sentenced

Saudi builder Mohammad Al Mojil Group (MMG) said on Monday its board had resigned after three people involved with the company were sentenced to jail.

It puts an effort to restructure the debt-burdened company in doubt.

Saudi Arabia's stock market regulator fined MMG $427 million (SR1.6 billion) in early June and sentenced three people, including founder Mohammad Al Mojil, to jail on charges of manipulation and fraud relating to the firm's initial public offer of shares.

MMG said in a statement that the decision by the Committee for the Resolution of Securities Disputes was based on "fundamentally flawed" evidence and had severely hurt the board's ability to run the company.

"The decision to resign is, in part, due to their serious concerns about the unlimited director and executive liabilities in the Kingdom of Saudi Arabia," the statement said, without saying what the company would do next.

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