Mobily had to restate 18 months of previously-announced earnings, wiping out $381 million of prior profits
Saudi Arabia's Etihad Etisalat (Mobily) has suspended its chief executive Khalid al-Kaf, the kingdom's number two telecom operator by subscribers said on Sunday.
The company's decision, effective from November 21, follows errors in Mobily's accounting that led the company to restate 18 months of previously-announced earnings, wiping out $381 million of prior profits.
Kaf will be suspended until Mobily's audit committee finishes a probe into these accounting errors, according to a statement to Riyadh's bourse.
Deputy Chief Executive Officer Serkan Okandan will run Mobily's operations in the meantime. Okandan was appointed in mid-October, just prior to the company's shock earnings announcement.
Abu Dhabi-listed Etisalat owns 27.5 percent of Mobily and Okandan is also chief financial officer of the United Arab Emirates' operator.
On November 3, Mobily cut its profits for 2013 and the first half of 2014 by a combined $381.2 million (1.43 billion riyals) and also reported a 71 percent drop in third-quarter profit.
Accounting errors for 8 months..?
this story is not over. more news to come.
watch this space !
This is what happens when you lay off loyal and dedicated staff at the Head Office in Abu Dhabi.
I guess what goes around comes around!!
Without addressing the core issues at hand, the Head Office in Abu Dhabi decided to lay off staff at the whims and fancy of so called expert CXO's - guess this had to come out sooner than later.
I feel sorry for Mr. Khalid Al Kaf whom I respect very much for having to take the rap for mistakes/omissions of others employed to do their jobs.