CmaBoardReleases
Title: CMA Announcement
In reference to the inaccurate and recurring disclosures issued by Mushrif Trading and Contracting Company regarding the issue of transferring the projects’ costs, CMA would like to clarify the following:
• Mushrif Trading and Contracting Company’s shares were suspended from trading on 15th November 2016 as a result of not submitting the financial statements of the period ending on September 30, 2016.
• The Capital Markets Authority obliged Mushrif Trading and Contracting Company to disclose the transfer of costs between its projects which resulted in the company’s inability to submit its financial statements for the period ending on September 30, 2016 until the end of the auditing period. The company disclosed at Boursa Kuwait on November 20, 2016.
• The Capital Markets Authority also, obliged Mushrif Trading and Contracting Company to disclose the recent developments regarding the issue. The company disclosed on January 26, 2017 and February 15, 2017. The company also disclosed on March 19, 2017. The last disclosure included the board of directors’ declaration that the transfer of the mentioned costs was not done in accordance with the adopted practices. The financial center’s loss due to such action is in the amount of KWD 34,569,585.
Pursuant to the provisions of Law No. (7) of 2010 and its Executive Bylaws and their amendments, CMA has been closely monitoring and taking all actions with all related parties since the first disclosure issued on November 20, 2016 the issue.
The CMA would also like to note that the suspension of Mushrif Trading and Contracting Company will continue until the Authority completes revising all matters relevant to the issue.