MUSCAT, OCT 15
As part of the regulatory role of the Capital Market Authority (CMA) towards public joint stock companies and referring to the report filed previously by the CMA to the Public Prosecution regarding suspected financial and administrative violations committed in Raysut Cement Company SAOG, the Public Prosecution, after completion of investigation, decided to refer the public case to the competent court.
The authority said in a post on Sunday that the Public Prosecution referred the case for trial after concluding its investigations. The authority’s report cited “suspected financial and administration violations” committed within publicly-traded Raysut Cement, the largest cement manufacturer in the Sultanate of Oman.
Last December, invoking its powers under the Commercial Companies Law and the Securities Law, the market regulator intervened when Raysut Cement failed to suitably address concerns over “material misrepresentations” uncovered by the authority in the group’s financial reporting for Q2 2022.
The authority stepped in to dissolve the existing Board of Directors — powers it has exercised only for the second time in its history — and instituted a new ‘temporary board’ with a mandate to restore the company’s organisational and operational stability and thereafter to also address all the shortcomings that led to its recent upheaval.
Raysut Cement posted a consolidated loss of RO 97.634 million in 2022 versus a loss of RO 13.585 a year earlier. The parent company racked up a loss of RO 93.761 million in 2022, up from RO 12.924 million in 2021. Losses for the nine months of 2023 were slashed to RO 3.35 million.
The interim Board of Directors continues to oversee governance issues at Raysut Cement following the discovery of financial anomalies that threatened to destabilise the group.
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