Saudi Binladin Group ‘still a private sector company’

Saudi Bin Laden Group Company (SBG) has asserted that it remains a private sector company owned by its shareholders. ​(Archive)
Updated 14 January 2018
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Saudi Binladin Group ‘still a private sector company’

JEDDAH: Saudi Binladin Group (SBG) on Saturday said it remains a private sector company owned by its shareholders, according to a statement sent to Arab News.
Earlier unconfirmed reports issued by some media outlets suggested that the Saudi government had taken over SBG, the Kingdom’s construction giant which has worked on dozens of megaprojects over the decades.
SBG also confirmed that contracted work with the government, which remains a significant part of its activities, is ongoing. This includes projects currently operating in the two holy mosques and the Zamzam rehabilitation project, which began months ago and is expected to end before Ramadan 2018.
Based on information available to SBG management, some shareholders may have agreed a settlement that involves transferring some SBG shares to the government of Saudi Arabia against outstanding dues.
SBG said this was a positive step and is currently restructuring its governance and executive management team to meet its commitment toward all stakeholders, according to the statement.
Restructuring efforts started two years ago with the objective of separating ownership from management in accordance with best governance standards.
To support those efforts, a supervisory committee was created. The committee is composed of five members, including three independent members — Dr. Abdulrehman Hamad Al-Harkan, Dr. Khaled Hamza Nahas and Khaled Mohammed Al-Khowaiter — and two members from the shareholders group, Yahia Mohammed Binladin and Abdullah Mohammed Binladin.
The committee will restructure the group and empower the new executive management to lead the projects and overcome the current challenges, leading the company to be profitable again, the statement said.
SBG, which had more than 100,000 employees at its height, is the biggest builder in Saudi Arabia. It was hit hard after the crash in oil prices, which led to construction projects and government contracts being scrapped or delayed. The company was forced to lay off thousands of workers.
The contractor also suffered a temporary exclusion from new state contracts after a crane accident killed 107 people at Makkah’s Grand Mosque in 2015.


India court allows Vedanta to reopen controversial plant

Updated 3 min 5 sec ago
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India court allows Vedanta to reopen controversial plant

  • The city of Thoothukudi had been rocked by long-running protests over the plant
  • Protesters say it harms the environment and the health of those living near it, claims the company has long denied

NEW DELHI: An Indian copper smelter at the centre of a police shooting that left 13 protesters dead has been granted permission to reopen by the country's environmental court.
The Sterlite plant, owned by British mining giant Vedanta Resources, was closed after the bloody police crackdown in May on protesters who say the smelter is poisoning the air and water.
Vedanta Resources, owned by Indian-born billionaire tycoon Anil Agarwal, had appealed against the plant's closure by the state government of Tamil Nadu where it is located.
The National Green Tribunal, a federal authority which rules on environmental matters, ordered Saturday that the plant in Thoothukudi city could resume operation.
Sterlite CEO P. Ramnath on Sunday welcomed the decision.
"We are happy that all those affected by the closure will get back their source of livelihood and the town of Thoothukudi will revert to normalcy," he said in a statement on Twitter.
The Tamil Nadu state government has said it will appeal the decision in India's highest court.
The city of Thoothukudi, previously known as Tuticorin, had been rocked by long-running protests over the plant, one of the largest in India.
Protesters say it harms the environment and the health of those living near it, claims the company has long denied.
The demonstrations intensified in May after Vedanta sought to double the annual capacity of the plant.
On May 22, police opened fire on thousands of protesters, killing 13 people.
The plant was shuttered by the state government in the aftermath of the shooting.
The company denies all charges and maintains that it adheres to the best environmental standards.
The federal green court ordered Vedanta to spend one billion rupees ($13.9 million) over three years to assist local communities.
But it criticised the pollution regulators in Tamil Nadu, saying they stalled the case by tying up the company in paperwork.