CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (45/2021 Disciplinary Board) (18/2021 Authority) and imposition of a fine of six thousand Dinars against Agility Public Warehousing Company for violating Real Estate Assets Valuation and Listing Rules.
Announcement Regarding Issuance of Disciplinary Board Resolution No. (45/2021 Disciplinary Board) (18/2021 Authority) and imposition of a fine of six thousand Dinars against Agility Public Warehousing Company for violating Real Estate Assets Valuation and Listing Rules.
For the following reasons:
First: Provision of Paragraph (C) of Item (1) of Appendix (1) (Real Estate Assets Valuation) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority, by studying the financial statements of Agility Public Warehousing Company for the financial year ending on December 31, 2019 and the interim data for the period ending on June 30, 2020, that the Company did not submit or attach any independent valuation of local real estate listed under (property and equipment).
Second: Provision of Paragraph (C) of Item (2) of Appendix (1) (Real Estate Assets Valuation) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority, by studying the financial statements of Agility Public Warehousing Company for the financial year ending on December 31, 2019 and the interim data for the period ending on June 30, 2020, that the Company did not provide independent valuations of foreign properties listed under (property and equipment).
Third: Provision of Article (1-13) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority, by studying the Company’s financial statements for the year ending on December 31, 2019, that the Company did not list the investment in Korek Telecom (Iraq) at fair value, which represents 5.3% of the total assets, which is a violation of International Financial Reporting Standard No. (9) which required that the investment values be included in the assets at fair value through profits and losses at their fair value on the date of the Company's financial statements.
The Resolution included the infliction of the following penalty: -
“First: - The Company is fined an amount of two thousand Dinars for each of the first and second violations attributed to it, and making it an ongoing monthly fine, starting from October 1, 2021 until the violations are fully rectified for all local and foreign real estate.
Second: - The Company is fined an amount of two thousand Dinars for the third violation”.
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.