Saudi Integrated Telecommunications Company (SITC) has issued a statement of clarification attacking "the mechanism and information technology and the Capital Market Authority" and demanded that the conflict between the company and government representative should be referred to court, after a committee recommended the withdrawal of its license and liquidating the company.

According to Al-Eqtisadiah, the company statement described the liquidation decision as irregular, illegal and not just and pointed out it followed correct and regular procedures when it put its stocks for sale on the financial market.

The company pointed out there is no legal or regulatory reason for withdrawing its license and its founders did not withhold any information during its establishment. They abided by the moral and regulatory duty toward the company and its shareholders, and took all measures necessary to overcome the obstacles the company faced.

The content on the SITC website disappeared except for the clarification statement included documents and letters related to the minister of trade to establish the company, its commercial register, spectrum values, quality performance, a check to the value of the registration, and a letter of the company emphasizing its commitment to an operational plan. There was also a letter from Communications and Information Technology Commission (CITC) that contained an apology from Al-Rajhi Bank about liquidating securities.

The statement that has 25 items said the company was qualified at the end of 1428 H, by the CITC to be licensed to provide fixed telecommunication services. After the completion of qualification requirements members of the SITC applied to the Ministry of Trade and Industry to start the establishment procedures for a public company with SR 1 billion as capital.

The company said during establishment procedures, the Ministry of Trade and Industry asked the founders to deposit their share of the company’s capital with one of the banks in accordance with regular practice.

The founders told the CITC they cannot pay their share twice: The first in the form of an unconditional and irrevocable bank guarantee, for them and their subscribers, with a sum that exceeds SR 1 billion.

They then asked the founders to deposit SR 650 million in the company’s bank account. The CITC was convinced and agreed to limit the deposit to the bank guarantee, considering it as a cash and kind introduction that covers the founders and subscriber’s share in the company’s capital.

The CMA greed to the founders' payment mechanism, the personnel who approved were: Financial advisor, legal accountant, (PriceWaterhouseCoopers), and legal adviser.

The company said related government departments — Ministry of Trade and Industry, CMA and CITC — refused the company’s public subscription until it completed all its license procedures, and after they made sure all its papers were in order.

After the completion of its paperwork, the company sent a letter to the CITC to get its license. After two months the company was asked to pay in cash for its spectrum within 10 days or the CITC will liquidate the bank guarantee from Al-Rajhi Bank to meet the due amount, which the company agreed to.

The bank refused to liquidate the guarantee, since it was irrevocable and unconditional. This led the authority to demand full payment for the license.