The Egyptian Financial Supervisory Authority (EFSA) commissioned an auditor to look into the financial lists of Marsa Marsa Alam for Tourism Development SAE for the first nine months of 2015 to determine if any violations have taken place, EFSA Chairman Sherif Samy said.
The main objective of the audit is to clarify to investors whether or violations occurred, so they can make clear decisions on stocks. According to Samy, there is no timeline for the audit, as it depends on the company’s compliance in providing related documents.
The EFSA addressed the Prosecutor General on Sunday, to approve investigation procedures, and move a case against Marsa Marsa Alam for Tourism Development SAE.
According to Samy, if the audit reveals any violations, any stock purchases made before 3 September when trading was halted will not be cancelled. He noted that the only option for investors will be to file reports against the defendants and demand compensation.
The EFSA’s statement noted they have found a number of violations, according to Capital Market Law No. 95/1922, related to the soundness of disclosures issued by the company.
The statement explained that the chairman’s shares, along with those of his wife and children, will be frozen until the auditor’s task is fulfilled.
The Egyptian Stock Exchange (EGX) halted all trading on the company’s shares on 3 September, as per the EFSA’s request, pending investigations.