Tawfiq Al-Rabiah

Commerce and Industry Minister Tawfiq Al-Rabiah warned businessmen that there will be no leniency for defaulters of the Qawaem program.

Those who fail to submit financial statements before the end of this month will face tough action, he said.

The ministry already issued a warning to all public companies that their registration will be canceled if they do not submit their financial statements before the end of this month under the Qawaem program.

The Qawaem program is one of the ministry’s initiatives implemented in cooperation with the Saudi Organization for Certified Public Accountants and the Department of Zakat and Income to convert financial statement documents to electronic soft copy and to be submitted online.

The minister stressed that under Article 229 of the Companies Ordinance, defaulters will be subject to cancelation of their commercial licenses with the imposition of a penalty which may include a maximum one-year imprisonment and a fine of less than SR20,000. “There won’t be any compromise with defaulters,” the minister stressed.

The aim of the program is to ensure credibility and transparency of the financial statements with the beneficiaries. It will also form an economic data base, supporting the National Database and Information.

MCI official spokesman Turki Al-Toaimi said there was a 70 percent response from the concerned companies since its launch in January 2015.

The program will also link the financial statements of companies and institutions with International Standard Industrial Classifications, adopted by the United Nations, which will enable a financial analysis of economic sectors and activities of various sectors.