Saudi King orders to pay unpaid salaries; SR100 million to be deposited

[email protected] (ARAB NEWS)
August 8, 2016

Jeddah, Aug 8: Custodian of the Two Holy Mosques King Salman on Sunday issued a series of directives to agencies concerned to address once and for all the cases of distressed workers of companies who have contracts with the government.king web

The king directed the Minister of Labour and Social Development to take necessary measures, in coordination with the Ministry of Finance, to oblige contracting companies to pay the salaries of their employees in accordance with the government's Wage Protection Program that ensures workers' salaries are fully paid.

According to sabq.org, the directive is for the government not to release what it owes those companies unless the Labor Ministry confirms that the companies have paid on time what they owe their employees.

The king's directives comes amid increasing complaints by workers that they have not been paid their salaries for months. Construction giant Saudi Oger, for one, has been the subject of complaints by thousands of its workers for not paying their salaries for the past nine months.

The issue came to a head when hundreds of expatriate workers of the company marched on the streets in Jeddah to air their grievances, saying that Saudi Oger management has simply ignored them.

Accomodation, exit visas

In one of his directives on Sunday, King Salman authorized the labor minister to also immediately address the housing and accommodation services of the distressed workers by contracting with companies that provide such services.

While the government of India and the Philippines as well as their communities in the kingdom have rallied behind their compatriots at Saudi Oger by providing them food, those of other nationalities have reportedly not gotten the same attention.

According to the king's directive, the cost of these services for the distressed workers are to be deducted from the employers' receivables from the government.

The king also commissioned the labor minister to coordinate with the Saudi Arabian airlines to transport foreign workers who wish to return to their countries and to charge the cost to their employers. The labor minister is also authorized to contract with legal consultancy agencies to pursue the financial claims of the workers in local courts.

In the case of workers in distress who wish to leave the kingdom, the king directed the Passport Department to facilitate issuance of final exit visas in coordination with the Foreign Ministry and relevant agencies.

SR100 million fund

An amount of SR100 million is to be deposited in the Saudi Arab Fund account for use to fulfill the king's orders. The fund is to be under the disposal of the labor minister, who will provide the Ministry of Finance with all details of the expenditures and the amounts spent. The Finance Ministry will then deduct the spent amounts from the floundering companies' accounts.

The king also instructed the labor minister to meet with representatives of countries concerned to discuss the issue of unpaid salaries and to explain the steps taken by the kingdom to address such issues.

“King Salman also directed labor minister to coordinate with the minister of culture and information to highlight the kingdom's efforts aimed at ending the suffering of the distressed workers especially the Indian and the Filipino workers and to ensure that this case was a mere individual mishap by one company and the number of affected workers is insignificant compared with the millions of other expats who are working in the public and he private sectors in KSA,” Sabq.org said.

Comments

Mohammed SS
 - 
Tuesday, 9 Aug 2016

This is a true quality and nature of blood, there is no Gangasara and energy of Haram mixed with their blood like our Indian Bakwas ministers, long live KSA and King Salman for the prompt step and to prove that your country is a safest and peaceful in the world

Fairman
 - 
Monday, 8 Aug 2016

Dear Dombiah,

Please don't play dombarata.

Coastal Digest may pro-Saudi. But it is not anti national.

Though pockets of unrest here, Still Saudi is the safest and peaceful place to live on.

God bless KSA

Abdul Latif
 - 
Monday, 8 Aug 2016

Generosity...Al Hamdulillah

Irfan
 - 
Monday, 8 Aug 2016

May Allah bless kingdom and the King Salman for his kind gesture.
Even our Govt also did amazing job by reaching out to those hard working people.

Rikaz
 - 
Monday, 8 Aug 2016

Good job His Royal Highness! May Allah help you.....you are just doing exactly what is said in the Holy Book of Quran....

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January 17,2020

Mangaluru, Jan 17: A poultry truck transporting chickens overturned on Friday at Perne village near Uppinangady on Mangaluru-Bengaluru National Highway, killing 200 of them.

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News Network
July 26,2020

Bengaluru, Jul 26: A year-long probe by Coffee Day Enterprises Ltd (CDEL) has found that its late founder V G Siddhartha routed Rs 2,693 crore out of the company to Mysore Amalgamated Coffee Estates Ltd (MACEL), another privately-owned entity of him.

The MACEL owes Rs 3,535 crore to subsidiaries of Coffee Day Enterprises as of July 31, 2019 of which only Rs 842 crore was accounted.

"Therefore, a sum of Rs 2,693 crore is the incremental outstanding that needs to be addressed," said the report of an investigation headed by Ashok Kumar Malhotra, a retired DIG of Central Bureau of Investigation (CBI) and assisted by law firm Agastya Agastya Legal.

Siddhartha was found dead in early August 2019, and many suspected that he had committed suicide.

Steps are being taken by subsidiaries of CDEL for recovery of dues from MACEL, the company said.

"The board authorised the Chairman to appoint an ex-judge of the Supreme Court or the High Court, or any other person of eminence, to suggest and oversee actions for recovery of the dues from MACEL and to help on any other associated matters," it said in regulatory filings at stock exchanges late on Friday.

The probe further gives clean chits to the Income Tax Department and the private equity firms who Siddhartha in his parting letter had alleged of harassment.

"We have not been provided with any documentary evidence to draw an inference that there may have been any advertent or inadvertent harassment from the Income Tax Department," said the probe report.

The probe also highlighted severe liquidity crunch at CDEL in the build-up to Siddhartha's death.

A committee supported by senior professionals was formed to protect the interest of all stakeholders. CDEL said the debt levels which were about Rs 7,200 crore on March 31, 2019 have been brought down significantly by Rs 4,000 crore. The present debt of the group is around Rs 3,200 crore.

"The disinvestment process in the group continues and we are confident to have effective solution to all stakeholders," it said.

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