CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (50/2021 Disciplinary Board) (22/2021 Authority) and imposition of a fine of six thousand Dinars against Kuwait & Gulf Link Transport Company for violating Real Estate Assets Valuation
Announcement Regarding Issuance of Disciplinary Board Resolution No. (50/2021 Disciplinary Board) (22/2021 Authority) and imposition of a fine of six thousand Dinars against Kuwait & Gulf Link Transport Company for violating Real Estate Assets Valuation.
For the following reasons:
First: Provision of Paragraph (B) 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 Kuwait & Gulf Link Transport Company for the financial year ending on December 31, 2019, that the Company did not submit or attach two independent valuations from at least two competent authorities for real estate listed under (property and equipment) with the financial statement mentioned, This is as follows:
1) A real estate in Amghara area with a value of KWD 1,243,180 (one million two hundred and forty-three thousand one hundred and eighty Kuwaiti Dinars).
2) A real estate in Mina Abdullah area with a value of KWD 493,685 (four hundred and ninety-three thousand six hundred and eighty-five Kuwaiti Dinars).
Second: 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 Kuwait & Gulf Link Transport Company for the financial year ending on December 31, 2019, the existence of local real estate located in Doha listed under (property and equipment), with a value of KWD 1,799,116 (one million seven hundred and ninety nine thousand one hundred and sixteen Kuwaiti Dinars) which was valuated by a single authority ( The World Bank) on March 2, 2020, violating the previously mentioned Paragraph (C) which requires conducting at least two valuations by competent authorities also it did not submit the valuation before the deadline.
Third: Provision of Paragraph (B) 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 Kuwait & Gulf Link Transport Company for the financial year ending on December 31, 2019, the existence of foreign real estate listed under (property and equipment), This is as follows:
1) Real estate located in the United Arab Emirates - Sharjah, with a value of KWD 24,268 (twenty-four thousand two hundred and sixty-eight Kuwaiti Dinars).
2) A real estate located in the State of Sudan, with a value of KWD 2,946 (two thousand nine hundred and forty-six Kuwaiti Dinars).
Without submitting or attaching any independent valuation for this real estate from at least one competent authority in the country in which the real estate is located.
The Resolution included the infliction of the following penalty: -
“First: - The Company is fined an amount of two thousand Dinars for each of the violations attributed to it”.
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.