RIYADH: The Ministry of Labor has suspended its services to 14 business establishments for periods ranging from one year to two years for exploiting the identities of Saudi citizens without their knowledge.

While projecting an artificial increase in the Saudization rate, the private sector establishments tried to avail themselves of the ministry’ services such as sponsorship transfer, work permit renewals and recruitment visas, local media has reported.

The action was taken following a direction by Labour Minister Mufrej Al-Haqabani to check malpractices that defeat the purpose of increasing the Saudization rate in the private sector.

Inspections have shown that the firms found guilty of malpractice registered citizens within the set Saudization ratio in their establishments without their knowledge, the local media quoted the Nationalization Committee as saying.

The employers have admitted that there was no relation between the two parties and that there was "placebo" employment that allowed the company to avail itself of the ministry’s services.

Recommendations of the Nationalization Committee stipulate that approval procedures for recruitment applications should be stopped for violating establishments and their branches for one year or two years, in addition to notifying the General Organization of Social Insurance.

The ministry also notifies the Human Resource Development Fund to take necessary steps toward preventing the establishments found guilty of malpractices from getting support.

The ministry has warned all the establishments in the Kingdom against using the identities of Saudi nationals in an illegal way, and urged citizens to report such transgressions through its call center or through the labor office branches in all parts of the Kingdom.