CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (74/2022 Disciplinary Board) (48 and 53/2022 Authority) and the imposition of a fine against: Arabi Group Holding Company for violating the Rules of Disclosure and Transparency and Listing Rules.
Announcement regarding issuance of Disciplinary Board Resolution No. (74/2022 Disciplinary Board) (48 and 53/2022 Authority) and the imposition of a fine against: Arabi Group Holding Company for violating the Rules of Disclosure and Transparency and Listing Rules.
For the following reasons:
1) Provision of Article (4-2-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company did not disclose promptly the material information related to the rescheduling of the banking facilities contract with the bank amounting to KWD 22,761,306 (twenty-two million seven hundred and sixty-one thousand three hundred and six Kuwaiti Dinars) settled on September 27, 2020 and was not disclosed until January 14, 2021.
Additionally, the Company failed to disclose in a timely manner the rescheduling of the banking facilities contract for its subsidiary (Arabi Enertech K.S.C.) with the bank, as the contract date was December 29, 2020 and was not disclosed until March 8, 2021.
2) Provision of Article (1-13) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company failed to apply the International Accounting and Reporting Standard No. (IAS 1), and failed register the value of KWD 29,900,000 (twenty-nine million nine hundred thousand Kuwaiti Dinars), which represents the value of the second set of capital increase for health insurance hospitals, was not recorded among the Company’s liabilities, but the Company Arabi Holding Group has deducted this obligation from the value of the investment, as a result of which the financial statements of Arabi Holding Group were not correctly reflected in accordance with the aforementioned standard.
The Resolution included the infliction of the following penalty: -
“Arabi Group Holding Company is fined an amount of ten thousand Dinars for each of the two attributed violations.”
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.