Al Jouf Cement Co.’s plant
Al Jouf Cement Co. discovered suspected financial and administrative irregularities involving three former board members, as the company appointed a specialized audit firm to audit the financial transactions and contracts that may involve violations or administrative irregularities affecting the company and its results in previous periods. 
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In a statement to Tadawul, the company said that the appointed auditor is currently conducting a comprehensive review of all financial transactions and contracts that may involve irregularities since the company’s listing on the stock market up until mid-2022.
The auditor has submitted a detailed report on the second and third cases, which are related to two projects, the construction of employee housing and the company road and another pertains to related parties.
The report’s findings concluded that contracts were signed for two projects, the employee housing project and the construction of the factory’s private road, without obtaining the necessary approvals from the authorized parties.
There were no authorizations from the board members, who are the authorized parties, to contract with the companies that undertook the two projects.
Under the terms of the direct contracts, Al Jouf Cement Co.’s approval was mandatory for any work or agreements assigned to subcontractors. However, a review of the contracts and project documentation revealed no evidence of such approval, and the subcontractor agreements were not available for examination.
A relationship with a related party, Al-Ta’affuf Company, was identified, which was not disclosed to the board of directors, and the necessary approvals for its activities were not obtained.
Meanwhile, certain amounts were disbursed to subcontractors by Al Jouf Cement without any official supporting documentation.
Subcontracting projects with a total value of SAR 85.15 million— the amount was actually disbursed — without obtaining the company’s approval for the subcontractors, as required by the contractual terms with the main contractor.
Additionally, a project was awarded to a main contractor, which was subsequently transferred to a subcontractor for a value of SAR 98.64 million— the project cost recorded in the accounting records. This case exhibits the same violations outlined in the previous points, with a difference of SAR 13.48 million between the main contractor’s and subcontractor’s project values.
Al Jouf Cement Co.’s plant
Al Jouf Cement Co. discovered suspected financial and administrative irregularities involving three former board members, as the company appointed a specialized audit firm to audit the financial transactions and contracts that may involve violations or administrative irregularities affecting the company and its results in previous periods.
For more news on listed companies
In a statement to Tadawul, the company said that the appointed auditor is currently conducting a comprehensive review of all financial transactions and contracts that may involve irregularities since the company’s listing on the stock market up until mid-2022.
The auditor has submitted a detailed report on the second and third cases, which are related to two projects, the construction of employee housing and the company road and another pertains to related parties.
The report’s findings concluded that contracts were signed for two projects, the employee housing project and the construction of the factory’s private road, without obtaining the necessary approvals from the authorized parties.
There were no authorizations from the board members, who are the authorized parties, to contract with the companies that undertook the two projects.
Under the terms of the direct contracts, Al Jouf Cement Co.’s approval was mandatory for any work or agreements assigned to subcontractors. However, a review of the contracts and project documentation revealed no evidence of such approval, and the subcontractor agreements were not available for examination.
A relationship with a related party, Al-Ta’affuf Company, was identified, which was not disclosed to the board of directors, and the necessary approvals for its activities were not obtained.
Meanwhile, certain amounts were disbursed to subcontractors by Al Jouf Cement without any official supporting documentation.
Subcontracting projects with a total value of SAR 85.15 million— the amount was actually disbursed — without obtaining the company’s approval for the subcontractors, as required by the contractual terms with the main contractor.
Additionally, a project was awarded to a main contractor, which was subsequently transferred to a subcontractor for a value of SAR 98.64 million— the project cost recorded in the accounting records. This case exhibits the same violations outlined in the previous points, with a difference of SAR 13.48 million between the main contractor’s and subcontractor’s project values.
