Title: Announcement regarding issuance of Disciplinary Board Resolution No. (112/2022) Disciplinary Board (69/2022) Authority and imposition of a fine against each of: 1- Mobile Telecommunications Company K.S.C.P (ZAIN), 2- Ahmed Tahous Al-Tahous in his capacity as Chairman of the Board of Directors, 3- Nasser bin Suleiman Al-Harthi in his capacity as Head of the Internal Audit Committee, 4- Abdulrahman Mohammad Al Asfour in his capacity as Member of the Internal Audit Committee , 5- Alaa El-Din bin Abdullah Bait Fadel in his capacity as Member of the Internal Audit Committee 6- Yousef Khalid Abdul Razzaq in his capacity as as Member of the Internal Audit Committee for violating the rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (112/2022) Disciplinary Board (69/2022) Authority and imposition of a fine against each of:

1- Mobile Telecommunications Company K.S.C.P (ZAIN).

2- Ahmed Tahous Al-Tahous in his capacity as Chairman of the Board of Directors.

3- Nasser bin Suleiman Al-Harthi in his capacity as Head of the Internal Audit Committee.

4- Abdulrahman Mohammad Al Asfour in his capacity as Member of the Internal Audit Committee.

5- Alaa El-Din bin Abdullah Bait Fadel in his capacity as Member of the Internal Audit Committee.

6- Yousef Khalid Abdul Razzaq in his capacity as as Member of the Internal Audit Committee.

for violating the rules of Corporate Governance

For the following reasons: 

First: 1- Mobile Telecommunications Company K.S.C.P - ZAIN.

Violating the provisions of Article (11-4) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

The Company failed to perform a performance evaluation for each member of the Board of Directors of the Company for 2019 and 2020, the evaluations that were provided to the Authority during the inspection were evaluations of the performance of the Board as a whole and not a detailed and accurate evaluations of the performance of each member of the Board of Directors.

Second: Ahmed Tahous Al-Tahous in his capacity as Chairman of the Board of Directors of Mobile Telecommunications Company K.S.C.P - ZAIN.

For violating the provisions of Item (1) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

For the following:

1- The Board of Directors failed to approve the internal audit policy although it was approved by the internal audit committee on 25/03/2015.

2- The Board of Directors failed to approve the Company's risk policy, although it was sent to the Authority on 17/01/2022 via e-mail without providing the Authority with the approval of the Board of Directors to date.

Third: Members of the Internal Audit Committee at Mobile Telecommunications Company K.S.C.P -ZAIN, each of:

1- Nasser bin Suleiman Al-Harthi in his capacity as Head of the Committee.

2- Abdulrahman Mohammad Al Asfour in his capacity as Member of the Committee.

3- Alaa El-Din bin Abdullah Bait Fadel in his capacity as Member of the Committee.

4- Yousef Khalid Abdul Razzaq in his capacity as Member of the Committee.

For violating the provision of Item (2) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, the Audit Committee of Mobile Telecommunications Company K.S.C.P (ZAIN) did not recommend the re-appointment of the external auditor assigned to study the financial statements for the period which ended on 31/12/2021.

The Resolution included the infliction of the following penalty: -

"First: - levying a fine against Mobile Telecommunications Company K.S.C.P- ZAIN in an amount of KWD 2,000 for the attributed violation.

Second: - Levying a fine against Ahmed Tahous Al-Tahous in his capacity as Chairman of the Board of Directors of Mobile Telecommunications Company K.S.C.P in an amount of KWD 2,000 for the attributed violation.

Third: - Levying a fine against each of:

1- Nasser bin Suleiman Al-Harthi in his capacity as Head of the Audit Committee at Mobile Telecommunications Company K.S.C.P.

2- Abdulrahman Mohammad Al Asfour in his capacity as Member of the Audit Committee at Mobile Telecommunications Company K.S.C.P.

3- Alaa El-Din bin Abdullah Bait Fadel in his capacity as Member of the Audit Committee at Mobile Telecommunications Company K.S.C.P.

4- Yousef Khalid Abdul Razzaq in his capacity as as Member of the Audit Committee at Mobile Telecommunications Company K.S.C.P.

An amount of KWD 2,000 (two thousand Dinars) on each of them for the attributed violation.”

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 Laws 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.