Nazaha says Saudi-listed company’s executives among 14 persons accused of financial irregularities

The Control and Anti-Corruption Authority (Nazaha) in cooperation with the Presidency of State Security, the Capital Market Authority (CMA) and the General Organization for Social Insurance (GOSI), said that 14 persons were accused of forgery and financial irregularities , the Saudi Press Agency reported.

The investigations found that 14 persons, including the board chairman of a publicly-listed company, in which the government invests capital, along with the vice president, CEO, a number of its board members, an audit committee member, five employees of a company owned by the board chairman were charged for illegal acts.

They were accused of forgery, money laundering, fiddling the company’s books and establishing companies to circumvent the corporate system and enable the CEO to buy over 10% stake in another Tadawul-listed company for SAR 200 million.

The move aims to influence the decisions of both companies’ boards of directors to achieve personal interests.

The persons were investigated and other regulatory procedures are ongoing to refer them to the competent court.

Nazaha has initiated 127 cases this month, of which the most important were related to a businessman that received a bribe of SAR 6 million, in return for his mediation for a company to win a contract from a government entity.

Moreover, eight people were arrested, including three expatriates working for an affiliate of a telecom operator, in cooperation with Riyadh police. They illegally sold SIM cards, which may be used in criminal and trading activities, and may be used in money-laundering processes.

Nazaha said it will continue to pursue any person that manipulates public finances or abuses his position to achieve personal gain or harm the public interest.

The authority lauded the efforts of government entities for financial and administrative corruption crackdown.