Lawsuit filed against Mobily scandal suspects -Saudi regulator
(10/12/2017 10:03:00 PM)
Saudi Arabia’s market regulator said a lawsuit was filed on Thursday against individuals related to an accounting scandal at telecoms group Mobily.
The public prosecution filed the suit in the Committee for the Resolution of Securities Disputes, which has jurisdiction over the dispute, the Capital Markets Authority (CMA) said on its website.
The CMA did not name the suspects nor say how many were involved.
It said the suspects had earlier been referred on suspicion of violating Article 49 of Saudi Arabia’s Capital Market Law, which relates to creating a false or misleading impression of a company’s value.
The lawsuit follows an investigation launched by the CMA after Mobily restated 27 months of earnings due to accounting errors related to the premature booking of revenue from wholesale broadband leases and mobile promotional campaigns.
The restatements cut 1.76 billion riyals ($469 million) off the profits made during that time by the company, which is partly owned by Abu Dhabi-based Etisalat.
In January, Saudi Arabia’s Committee for the Resolution of Securities Disputes (CRSD) found a number of individuals guilty of providing insider information and of insider trading in Mobily’s shares.
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