CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (17/2021) Disciplinary Board - (123/125,2022) Authority and imposition of a fine against each of: 1- Arabi Group Holding Company 2- Qais Mohammed Al-Nisf- in his capacity as the auditor of Arabi Group Holding Company for violating the Listing Rules and the rules of Securities Activities and Registered Persons
Announcement regarding issuance of Disciplinary Board Resolution No. (17/2021) Disciplinary Board - (123/125,2022) Authority and imposition of a fine against each of:
1- Arabi Group Holding Company
2- Qais Mohammed Al-Nisf- in his capacity as the auditor of Arabi Group Holding Company
For violating the Listing Rules and the rules of Securities Activities and Registered Persons
For the following reasons:
First: Arabi Group Holding Company violated the following provisions of Article (1-13) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company did not disclose in the notes to the financial statements in the periods ending on 31/12/2019, 31/3/2020, and 30/6/2020 that it had defaulted on loan installments or rescheduled it for non-performing loan installments, in accordance with paragraph (18) of International Financial Reporting Standard No. ( IFRS7) "Securities: Disclosures", as it was found through the on-site inspection that was conducted on Arabi Group Holding Company during the period from 23/8/2020 to 17/9/2020 that the Company had failed to pay the financial obligations due according to the latest contracts with ongoing obligations.
Second: Qais Mohammed Al-Nisf- in his capacity as the auditor of Arabi Group Holding Company
For violating the provision of Article (3-4-5) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, for failing to indicate in his report of the financial statements for the periods ending on 31/12/2019, 31/3/2020, and 30/6/2020 that Arabi Holding Group Company violated the application of Paragraph 18 of the International Financial Reporting Standard No. IFRS7 “Securities: Disclosures”, due to its failure to disclose in its financial statements for the periods ending on 31/12/2019, 31/3/2020, and 30/6/2020 that it had defaulted on paying installments of some loans and rescheduled the installments of non- performing loans.
The Resolution included the infliction of the following penalty: -
"First: - Levying a fine against Arabi Group Holding Company in an amount of KWD 10000 (ten thousand Dinars) for the attributed violation.
Second: - Levying a warning against Qais Mohammed Al-Nisf- in his capacity as the auditor of Arabi Group Holding Company and warn him of the consequences of the repeating the violations in the future"
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.