Former MD of Thimar gets jail, SR3.25 million fine for violation of Companies Law

Saudi Gazette report

RIYADH — Sari Almayouf, former member of Board of Directors and managing director of the National Company for Agricultural Marketing (Thimar), was sentenced to 90 days in prison and imposition of fines amounting to SR3.25 million for violation of the Companies Law. The Appeal Committee for Resolution of Securities Disputes (ACRSD) found him guilty of violating Paragraph (b) of Article 211 of the Companies Law, the Capital Market Authority (CMA) said in a statement.

Almayouf was convicted of using the funds of Thimar against the company’s interests to achieve personal goals and favoring one company with which he has interests. This is through transferring funds to the bank account of one establishment with whose owner the convict has a friendship and business relationship. He had committed the violation without any supporting documents or invoices to prove these transfers. This institution had transferred part of these sums to one of the companies in which the convict has an interest without any justification for these bank transfers.

The ACRSD’s decision came as a result of joint coordination and cooperation between the CMA and the concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA, against the convict.

The CMA stressed the importance of investors’ confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors of the Capital Market Law, its Executive Regulations, and the regulations enforced by the CMA. It identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA’s efforts aimed at creating an attractive investment environment to all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, deception or manipulation.