Saudis place sanctions on Binladin Group over Grand Mosque deaths

Saudi emergency workers examine the wreckage after a crane crashed into the Grand Mosque in Mecca

Saudi Arabia has placed sanctions on the Binladin Group as it investigates claims of negligence in last week’s deadly crane accident at the Grand Mosque in Mecca.

The royal court barred the company’s board members and senior executives from leaving the country while an investigation into the accident is completed, the official news agency reported late on Tuesday. The Jeddah-based group will also be barred from new public contracts in the meantime.

A crane crashed on to worshippers at the Grand Mosque amid high winds on Friday, killing 107 and injuring around 238.
Initial investigations have shown that the crane was in the wrong place and that the company had not respected safety norms, but there was no suspicion of criminal activity, according to the press agency.
King Salman has promised SR1m ($266,648) in compensation for each family of those killed or permanently injured.

The Binladin Group is one of the kingdom’s largest construction groups. It was founded in 1931 by the father of Osama bin Laden, the late leader of al-Qaeda, the Islamist extremist group.

The expansion of the Grand Mosque is one of the conservative kingdom’s largest and most controversial construction projects. Launched by the late King Abdullah in 2011, the project will expand the capacity of the mosque from 770,000 worshippers to more than 1.5m. Valued at SR100bn, it is scheduled for completion at the end of this year. Some new facilities including new walkways and praying areas, were opened by the king in July.
But while the authorities say the expansion is needed to ease congestion during the annual pilgrimage, critics say the redevelopment of the historic site is damaging Islamic heritage.

The royal court’s strong move against the Binladin Group underlines a harder regulatory line being taken by the authorities as the economy seeks to open up to foreign investment as low oil prices hit government finances.

Business observers allege that in the past major companies with influence often managed to escape censure for corporate wrongdoing.
The regulator earlier this year acted against telecommunications company Mobily over accounting irregularities. The authorities have also taken action against the local branches of global firms, including HSBC and Deloitte, over alleged regulatory breaches.