Arab expats arrested in cover-up business

RIYADH: Two Arab expatriates, who were running six establishments under the name of a Saudi citizen, were arrested in Alkhobar for violations of the Commercial Concealment Law of the Ministry of Commerce.
In a routine inspection by the Ministry of Commerce and Industry (MCI), inspectors found the commercial concealment case at an information technology company in the Eastern Province.
MCI inspectors discovered a number of documents and physical evidence that proved the involvement of two non-national Arabs in running private sector firms dealing in information technology, advertisements, stationery, office furniture, computer sales and involved in contracting activities.
The case was referred to the Bureau of Investigation and Public Prosecution to complete investigations. Subsequently, the case will be referred to the Bureau of Grievances for final judgment.
According to MCI inspectors, the two expatriates managing the company were running all the activities, while the real Saudi sponsor had no idea about the activities of these companies run under his name.
Upon inspecting the site, a number of documents, official papers and contracts signed by the expatriates were seized. “This would prove their full involvement in managing the company under commercial concealment,” an inspectors said. The ministry has warned all local businessmen not to violate its Anti-Commercial Concealment Law.
In a statement issued on Monday, MCI said it aims to get rid of the phenomenon of commercial concealment, and will create a trading environment free of irregularities and violations to enable citizens to practice business safely.
Under this law, the offender is liable to two-year imprisonment and a maximum fine of SR1 million, as well as deportation. The activities of the Saudi sponsor will be blacklisted by the ministry, with his name publicized in daily newspapers. Further, the business registration in question will be canceled for a period of five years.
In the light of the issue, the MCI recently released a statement warning all companies, commercial institutions and individuals not to cooperate with violators of commercial rules and regulations, as such violations will invariably lead to serious legal and statutory penalties.