A senior Arab official at an American insurance company operating in the Kingdom is set to be charged Saturday by the Saudi Arabian Monetary Agency (SAMA) for allegedly stealing an estimated SR50 million from employees of the company. It is alleged that he took the money in the form of deductions from the monthly and yearly income of employees to start a company-approved support fund for them. However, the employees claim the fund does not exist. Sources told Okaz the Ministry of Interior will also investigate the fund and the amounts of money collected, how it was disbursed, and the fund's revenues. SAMA will charge the official with fraud. The employees found out the fund did not exist after about a year-and-a-half of deductions. They filed complaints with SAMA and the Labor Office, which led to the investigation. They also discovered that the company's commercial representative in the Kingdom, and its regional branch in Dubai, had fired a considerable number of employees. Under regulations in the Kingdom, individuals and corporations cannot establish any investment fund without being licensed by SAMA, and through a bank account that is run under SAMA's oversight. Lawyer Muhammad Aal Thunaiyan, who represents the employees, stated in the complaint that the official “illegally took over employees' rights”, that he breached regulations and exploited his power and the absence of the company's oversight. The complaint document also stated that the official had threatened and blackmailed employees by saying he would sack some and deport foreigners. Aal Thunaiyan told Okaz that he has the power of attorney “of employees and clients” and that he “expects the complaints filed with the two bodies to be looked at in a few days”. When asked about the possibility of reconciliation and for the official to return the money of the employees, he said it is “possible in all private action cases. However, the public action is a matter for the government, especially as the company violated the law, and the official has exploited his authority to deceive employees and clients”. The lawyer said that the complaint he had filed involves about SR25 million at the moment, but he expects “more facts to be revealed in the coming period”. The company provides insurance and saving products including retirement planning and life insurance. It practices alleged high-risk investments under the umbrella of insurance, allegedly without any legal oversight by SAMA.
