CIMIC working to repay $9.8m to 420 workers in Middle East as shares tank
CIMIC is working to repay $9.8m to 420 workers in the Middle East as part of a dispute over unpaid wages at its former regional offshoot. Picture: Giuseppe Cacace/AFP
Australia’s largest construction company, CIMIC, is working to repay $US7m ($9.8m) to 420 workers in the Middle East as part of a dispute over unpaid wages at its former regional offshoot.
CIMIC shares were last down 15.4 per cent at $15.51, their lowest level since March 2020, after more revelations over the payment scandal were publicised, triggering a query from the ASX.
The Sydney-based company said on Monday it was working with Sald, the Dubai-based buyer of its BICC unit, to ensure 2,720 staff were paid end of service benefits.
Some 1900 have received entitlements, money to a further 400 has been processed while payment to a further 420 people is being “pursued”, CIMIC said.
The bulk of those are in Qatar, numbering 300 of the 420, with CIMIC blaming the business being under “curatorship” for delays in processing payments.
The remainder are in the UAE and Saudi Arabia with half of those settlements subject to dispute.
“CIMIC continues to actively work with the acquirer to ensure BICC meets its statutory obligations to employees. The $US7m required to do so is available to the acquirer as part of the sale process,” CIMIC said.
An investigation by The Australian earlier this year found the BIC Construction Middle East joint venture – consisting of CIMIC’s stake and a 55 per cent holding owned by ex-Al Habtoor chairman Riad al-Sadik – revealed BICC’s Qatar division still owes more than $US1bn in debts.
It had offered to sell its Qatar unit for just 36c, while two executives working for the venture were arrested and put in jail as authorities sought an explanation over the fallout.
