JEDDAH, 2 November 2006 — A Makkah governorate representative at the special committee formed to review a case of illegal investments has called for a Saudi police officer to be sent to a disciplinary committee for abusing his power.
The representative also called for a Saudi university lecturer to be prosecuted and investigated by the committee responsible for investigating government workers in criminal and embezzlement cases. Both men are involved in an illegal investment case said to involve more than SR2 billion.
The representative’s calls come after the mistakes of government sector workers became known, especially since these investments are illegal and go against the rules and regulations of the Kingdom in relation to business and investment. Lawyers specializing in the field of investment also called for a quick transfer to courts of those involved in illegal SAWA investments.
Specialists in this field say that the amount of illegal investment exceeded SR11 billion and involves more than 30,000 Saudis from across the Kingdom. Investment group leaders use the amount of money in different types of investment but fail to give documents or contracts that specify the type of investment they make.
Mahdi Kurdi, a legal counselor, said that it is difficult to prove that there is a crime because the investor does not receive any legal documents that specify the amount of money he has invested or the return he is going to get. “Most of these investments are run from individuals and by specialized companies,” he said.
The SAWA investments started in Saudi Arabia in the late 1990s, especially in Jeddah. Many people participated in these investments seeking to make a quick profit as promised by leading investors who claimed profits could be made within the first week of investing. A huge number of people invested over SR50,000 each in these investments and were receiving a fixed profit of SR8,000 per week.
Muhammad Saeed, a financial analysis, said: “Such investments reflects negatively on the national economy. If these investments continue, it will do greater damage to the economy as a whole. Such investments do not benefit the economic development of the company. In the cases of these investments, money has not returned back to investors.”
The Jeddah branch of the Ministry of Commerce and Industry warned Saudi citizens against getting involved in illegal SAWA investments and similar investments involving electricity equipment and real estate.
