As MCI continues its inspection campaigns to reveal those violating the provisions of the anti-commercial concealment law in various regions of the Kingdom, the inspectors detected an expatriate running a plant and six shops, belonging to one of the Est. specialized in aluminum kitchen cabinets in Taif. MCI inspectors revealed a number of documents and physical evidence proving that an expatriate, from Arab nationality, is managing the said plant and the related shops, aided by one of the citizens, through exploiting his name and commercial registration against a monthly lump sum. The case was referred to the Bureau of Investigation and Public Prosecution to complete the investigation procedures and then to be referred to the Bureau of Grievances to issue the final judgment.
According to the preliminary investigations, it has come out that the expatriate is running the aluminum kitchen cabinet plant, in addition to the six shops for marketing the product in Taif. After calling up all the parties, it turned out that the real owner of the Est. is the expatriate, since the citizen has enabled him to invest in this field through using his name and his commercial registration, against a monthly lump sum.
In details, MCI had received a notification from a citizen in Taif, suspecting a commercial concealment case in an Aluminum Kitchen Cabinet Trading Est. After carrying out the necessary investigation, it turned out that the expatriate is managing and running the Est. by his own, without supervision or follow-up by the citizen, despite being registered in the citizen`s name. Upon inspecting the Est., a number of documents, official papers, payment vouchers, receipts, securities, contracts, money transfer and bank deposits have been revealed.
This comes within MCI keenness and concern to take stern measures to implement all penalties and fines against violators of the Anti-Commercial Concealment Law, that may reach to two years' imprisonment and a fine of one million riyals per violator, and deporting the non-Saudis from the Kingdom.
It is worth mentioning that MCI is making defamation in the local newspapers periodically against the violators at their own expense, in addition to other penalties and fines including the closure and liquidation of the trade activity, as well as writing off the Commercial Registration and the prevention of practicing the same business for five years.
According to Anti-Commercial Concealment Law, any Saudi citizen or a foreign investor would be deemed a violator, if he enabled a non-Saudi of doing business for his own account, whether through using his name, license, CR or in any other way. The first article of Anti-Commercial Concealment Law provided that, It is not permissible for the non-Saudi in all cases, to exercise or invest in any activity, he is not authorized to, under the Foreign Investment Law or other Rules & Regulation.
MCI would like to warn all companies, institutions and individuals against the cooperation with the violators of the Kingdom`s R&R, otherwise they would be legally accountable and subject to statutory penalties. MCI aims to reduce the phenomenon of commercial concealment and to create a regular, free of irregularities, trading environment, as well as to enable the citizens of practicing business safely.
MCI would like to urge all citizens to report any commercial concealment, if the evidence is found, through the toll free number (1900) or through the application of a Commercial Notification via smart devices, or attending to any of the Ministry`s branches in the Kingdom, since the Ministry grants a financial reward to the collaborator in such cases, not exceeding 30% of the value of the adjudged fines after collection.