Arab News, Thursday, Jan 14, 2021 | Jamadi Al Thani 1, 1442
Saudi insurance firm’s board members, audit executives convicted, fined by market regulator
Saudi Arabia: Some members of Weqaya Takaful and Reinsurance
Co.’s board of directors, audit and executive committees were convicted and
fined SR1.3 million ($350,000) in the lawsuit filed by the Capital Market
Authority (CMA).
The decision of the Appeal Committee for Resolution of Securities Disputes (ACRSD)
was announced Jan. 13, 2021, by the General Secretariat of the Committees for
Resolution of Securities Disputes.
According to the decision, those members were convicted of violating the
corporate governance regulations, and the listing rules (applicable at that
time), as they did not fulfill their duties and failed to verify the soundness
of the financial and accounting systems deployed for the preparation of the
company’s financial reports and financial statements in the fiscal year ended
Dec. 31, 2013, and the interim period ended March 31, 2014.
Fines were imposed on Abdullah Al-Fuzan (SR200,000), Abdullah Alzunaitan
(SR200,000), Fahad Alashqar (SR200,000), Ali Al-Suhaily (SR100,000), Omar
Aldhouayan (SR200,000), Hussain Al’atal (SR200,000), and Khaled Alshami
(SR200,000).
They were also banned from working in Saudi-listed companies for a period
ranging between three and seven years.
CMA announced earlier this month that a decision was issued by ACRSD, convicting
some of the company’s board members and executives of manipulation, fraud and
scam of the capital market rules.
Total fines worth SR2.15 million were issued for those individuals, who were
also banned working in Saudi-listed companies for a period ranging between five
and seven years.
According to Argaam’s available data, the CMA decided in May 2017 to delist
Weqaya from Tadawul due the company’s inability to meet regulatory requirements
and fulfil financial commitments.