Saudi German Health fined for securities listing rules violation

One of Middle East Healthcare Co. (Saudi German Health) hospitals

The Capital Market Authority (CMA) announced that its board has imposed a SAR 20,000 fine on Middle East Healthcare Co. (Saudi German Health) for violating Paragraph 6 of Article 63 of the amended Securities Offering and Continuing Obligations Regulations.

According to CMA, the violation occurred due to the company’s failure to disclose immediately and without delay to the CMA and the public a dispute with the Zakat, Tax and Customs Authority (ZATCA) dated Dec. 26, 2020, regarding objections to Zakat and tax assessments for the fiscal years 2015–2018, where the disputed amount exceeded 5% of the company’s net assets, based on the preliminary consolidated financial statements for the period ending Sep. 30, 2020, estimated at SAR 156.9 million.

The CMA noted that the company only disclosed the details of the dispute later in the notes to its consolidated financial statements for the fiscal year ending Dec. 31, 2022.