DAMMAM — A Saudi citizen fell in a huge debt trap amounting to SR26 million following commercial dealings with an Arab expatriate under a tasattur (commercial coverup) arrangement. The citizen allowed the Arab national to engage in contracting activities in the city of Dammam in the name of an institution he owned. As per the agreement between the two parties, the expatriate would manage and operate the establishment's businesses such as purchase of equipment, implementation of projects, signing of contracts and act as the owner. The citizen would receive SR,5000 per month in return for enabling the resident to run the activity. Accordingly, the expatriate started construction of a number of projects in the name of the establishment. He defaulted payment of money after the purchase of equipment and doing construction works. When the competent authorities summoned the Saudi owner following complaints of payment default, he was surprised by the financial claims exceeding SR26 million against him. The Ministry of Commerce interevened in the case and summoned the citizen and expatriate to testify. They were then referred to the Public Prosecution and subsequently to the court to examine the case against them. The Ministry of Commerce announced earlier this month that it will start applying deterrent penalties against violators of the new Anti-Commercial Cover-up Law effective from February 25, 2022. The ministry clarified that anyone, who was arrested for committing a crime or a violation of the law before submitting a request to correct their status before the deadline, or who was referred to the Public Prosecution and the competent courts, will face stringent punitive measures. The penalties for tasattur include imprisonment up to two years and a fine of up to SR1 million. Non-Saudi workers will be deported from the country after serving their sentences. People involved in tasattur will also be named and shamed in newspapers. The business will be closed and liquidated while the owner will be banned from practicing any business in the future.
