May 20 2012 |
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MMG accepts CEO Zadeh's resignation
By Siraj Wahab DAMMAM: Eastern Province-based construction firm Mohammad Al-Mojil Group ( MMG ) announced yesterday that it has accepted the resignation of Chief Executive Officer Ebrahim Zadeh. The company is in the eye of a financial storm for quite some time now.The decision was taken at a meeting of the board of directors on Saturday at the company's headquarters in Dammam. The board appointed PricewaterhouseCoopers to advise it on its financial performance.
Zadeh, a US national, had taken over the reins of the company in November 2011 from Ibrahim Al-Shuweir. He completed only six months in the top job before deciding to quit citing family commitments. Arab News tried to contact him last night, but could not succeed. According to close aides, he is traveling to the United States.
The board did not name Zadeh's successor but said a new chief would be appointed within three months.
The company said the decision to accept Zadeh's resignation was taken to increase operational efficiency and improve the company's financial performance.
According to a statement posted on Tadawul yesterday, the group's first-quarter net profits fell by 31 percent from the same period in 2011 to SR22.5 million. It had a fourth quarter loss of SR1.03 billion.
A lot of hopes were pinned on Zadeh. At the time of his appointment, the board had highlighted his brilliant track record of bailing out ailing multinational companies in the US. The local media had written extensively about his efforts to successfully turn around the fortunes of The Shaw Group.
The MMG board has now tasked PricewaterhouseCoopers with conducting a comprehensive and independent review of the company's activities and projects as well as cash flow; reviewing the company's performance in order to developing and increasing productivity and to control cost and negotiating and representing the company and its board of directors in all related matters.
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