Al Mojil can still be revived, says former chairman

Mohammad Al Mojil Group (MMG), which was suspended from trading by the Capital Market Authority (CMA), can still be revived, said Adel Al Mojil, former chairman of MMG to CNBC Arabia.

He said that while he sympathized with the shareholders, it was the Al Mojil family that was the most affected—financially and socially—by the company’s current situation.

The family will continue in its quest to clear its name and save the company, which represents a national asset, he said.

As the family now has access to the report that the CMA based the law suit on back in 2014, it would be able to respond to the various allegations, he added.  

Adel Al Mojil maintained that the main reason behind the company’s problems was the money owed on work done for Saudi Aramco’s big projects.

MMG’s shares have not traded on Tadawul since July 2012, when the stock was suspended by the CMA over losses.

Since then the Dammam-headquartered oil, gas, and petrochemical contractor has tried to restructure itself, partly through seeking payment of hundreds of millions of riyals it is owed for completed work.

On 16 June, 2016, the CMA’s Committee for the Resolution of Securities Disputes (CRSD) imposed prison sentences on three MMG executives.