Riyadh – Mubasher: A total of 11 board members and audit committee representatives of Middle East Healthcare Company (Saudi German Health) have been convicted of violating the Capital Market Law, according to an official statement by the Capital Market Authority (CMA) of Saudi Arabia.
The convictions follow a comprehensive investigation into the manipulation of the company’s financial statements covering the period from 2018 to 2021, resulting in collective fines amounting to approximately SAR 18 million.
The CMA stated that the individuals were convicted for “inflating the company's revenues and creating a false and misleading impression regarding its book value, by acknowledging undue total revenues that reached SAR 358.04 million, despite the knowledge of the company's board of directors and audit committee of the low likelihood of collecting such revenues.”
The Saudi regulator added: “This resulted in the inclusion of inaccurate information in the financial statements subject to the violation, extending from the financial year ending on 31/12/2018 till the initial financial period ending on 30/09/2021, which affected the company's assets and caused its financial statements to be presented untruthfully and its revenues to be inflated.”
The manipulation of financial statements is regarded as one of the most serious violations within the Saudi capital market framework. Such activities undermine the trust of shareholders and can lead to distorted market valuations, potentially harming both individual and institutional investors.
By misstating essential financial data between 2018 and 2021, the involved parties failed in their fiduciary duties to provide a true and fair view of the organization’s operational and financial health.
The CMA explained that the Appeal Committee for the Resolution of Securities Disputes’ (ACRSD) final decision came as a result of joint coordination and cooperation between the CMA and relevant concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA in March 2024, against the violator for violating the Capital Market Law and its Implementing Regulations.
According to the financial position in the first quarter (Q1) of 2026, Saudi German Health posted lower annual net profits worth SAR 25.70 million.
