Saudi Arabia: Regulator penalises directors and senior execs of financially stricken insurer
Source: Middle East Insurance Review | Feb 2021
Some members of Weqaya Takaful and Reinsurance’s board of directors, audit and executive committees were convicted and fined a total of SAR1.3m ($350,000) in a lawsuit filed by the Capital Market Authority (CMA).
According to a decision of the Appeal Committee for Resolution of Securities Disputes (ACRSD) announced by the General Secretariat of the Committees for Resolution of Securities Disputes, the directors and executive committee members were convicted of violating the corporate governance regulations, and the listing rules (applicable at that time), reported Arab News.
They did not fulfil 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 31 December 2013, and the interim period ended 31 March 2014.
Fines of SAR200,000 were imposed each on Messrs Abdullah Al-Fuzan, Abdullah Alzunaitan, Fahad Alashqar, Omar Aldhouayan, Hussain Al’atal, and Khaled Alshami while Ali Al-Suhaily received a fine of SAR100,000. They are also banned from working in Saudi-listed companies for a period ranging between three and seven years.
The CMA decided in May 2017 to delist Weqaya from Tadawul due the company’s inability to meet regulatory requirements and fulfil financial commitments. M
SAR1 = $0.27