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Saudi Binladin Group denies govt takeover after chief detained

AFP  |  Riyadh 

Saudi Binladin Group denied today any state after its was detained, but said some may have been transferred to the The firm, which has been forced to lay off tens of thousands of workers due to financial problems, said it remained a private shareholding company and was undergoing restructuring. International media this week reported Saudi Arabia's had taken over the firm after bin Laden was detained. The "would like to confirm that it remains a private sector company owned by its shareholders", it said in a statement. But some company may have been transferred to the in a settlement of "outstanding dues", it added, without providing any details on the size of any such "Based on information available to the management, some of the shareholders may have agreed (to) a settlement that involves transferring some SBG to the of against outstanding dues," it said. The group's was among dozens of high-profile political and business figures arrested two months ago in a crackdown on corruption ordered by Crown Mohammed bin Salman. Saudi authorities said they were negotiating financial settlements with those detained that could earn state coffers about USD 100 billion. Some of those jailed at the luxury in have been released after agreeing to a settlement with the But the is among several other suspects who are still in detention.

These also include Saudi billionaire Established in 1931, the is one of the most powerful companies in the It belongs to the family of the late bin Laden, who was killed in 2011. The firm has encountered serious difficulties in the past few years. It laid off around 77,000 foreign workers in 2016, after the delayed payments due to a slump in oil revenues. It also faced unprecedented scrutiny after one of its cranes working on a major expansion of the in Mecca, Islam's holiest site, collapsed in 2015, killing at least 107 people. The firm had been working for years on the multi-billion- dollar project to accommodate the increasing numbers of Muslim pilgrims to the site. A in October cleared the company of responsibility for the accident. Today, the group said that its contracted work with the would continue, especially at the in and another mosque in the holy city of It also said it had formed a committee to oversee its restructuring towards the firm "being profitable again". has posted large budget deficits in the past four fiscal years and is projected to remain in the red until 2023 due to The drop in also led to the demise of Saudi Oger, a once-mighty construction firm linked to Lebanon's

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 20:25 IST
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