RIYADH: An Arab expatriate, who was allegedly running a restaurant under the name of a Saudi businesswoman, has been arrested for violation of the Anti-Commercial Concealment Law of the Commerce and Industry Ministry.

In a routine inspection by the ministry, inspectors found the violation at a restaurant in Rafha in the northern region.

The inspectors found a number of documents as well as physical evidence showing the involvement of the expatriate who was operating the restaurant aided by a Saudi woman.

According to the inspectors, the expatriate was managing the restaurant and was in charge of all its activities.

If found guilty, the violators are subject to a maximum of two years in prison and a fine of SR1 million. The woman’s commercial license might be suspended for five years and the expatriate will be deported after serving his jail sentence.

Describing it as a violation under the Anti-Commercial Concealment Law, the authorities have referred the case to the Bureau of Investigations and Public Prosecution. It will be subsequently referred to the Bureau of Grievances to issue a final judgment.

During the inspection of the site, the inspectors found a number of documents and papers, proving that the expatriate was managing the stores as if he was the real owner and he was operating the bank accounts too.

It was detected during the inspection that the Saudi woman and the said expatriate had signed business agreements and lease contracts. “This is all contrary to the provisions of the Anti-Commercial Concealment Law,” a ministry official said.

According to the law, every Saudi citizen or a foreign investor, who enables a non-Saudi of doing business on his behalf, would be considered a violator, whether through using the trade name, license or Commercial Registration or any other way.

The first article of the Anti-Commercial Concealment Law states that it is not permissible for a non-Saudi to exercise or invest in any activity, if he is not authorized to exercise or invest under the Foreign Investment Law or other rules and regulations.

The ministry reiterated its warning to all companies, institutions and individuals to avoid cooperating with violators of the Kingdom’s systems and laws. Otherwise, they will be liable for legal and statutory penalties.

The ministry aims to reduce the phenomenon of commercial concealment and to create a regular system free of irregularities in the trading environment, and to enable citizens to do business safely.

It also urged citizens who have proof to report cases of commercial concealment as the ministry grants a financial reward to the informant not exceeding 30 percent of the value of the fines collected.

Informants can call the ministry’s toll free No. 1900 or contact the concerned department of the ministry by fax or e-mail.