Makkah Criminal Court drops crane case citing lack of jurisdiction

January 27, 2017

Jeddah, Jan 27: Makkah Criminal Court issued on Thursday said it was dropping the case of the crane that collapsed in Makkah in September 2015 due to lack of jurisdiction over the case.

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The accident resulted in 110 deaths and 209 injuries.

The court issued its ruling in the presence of the defendants on trial and the prosecutor; it came after several sessions of deliberations.

The prosecutor had interrogated the defendants before the judge decided to drop the case due to an issue of jurisdiction.

The court informed the defense team of the 13 people on trial, consisting of Ahmed Al-Qurashi, Attorney Hassan Jomaan Al-Zahrani and Abdullah Bin Laden, that it will inform them later of the date the legal decision will be formally issued.

Reports presented by the Bin Laden Group during the investigation and court sessions had shown that sudden changes in weather conditions, difficult to forecast, resulted in unusual winds, which in turn caused the collapse of the crane.

The company made a point of mentioning the fact that 50 thunderbolts were recorded on the day in Makkah within a period of only one hour due to the inclement weather conditions.

The storm was accompanied by heavy rain and thunder, as well as drop in temperature from 45 degrees to 21 degrees Celsius, the company said.

The Civil Defense Department spokesman said that the heavy rain that fell over Makkah on that day reached 40 millimeters within a very short period of time.

The 13 defendants on trial gave their affidavits to the court. They were absolved of responsibility for the collapse of the crane and the consequent damage due to insufficient evidence.

Of the three judges, two decided to drop the case; the third maintained that the court has jurisdiction over the case.

The prosecutor also insisted that the court had jurisdiction and legal competency to look into the case, based on the royal decree issued following the incident, including into charges of loss of life, property damage and negligence.

The Bureau of Investigation and Public Prosecution relied on the results of the investigation, which were submitted to higher authorities, and indicated that the main cause of the accident was the fact that the crane was subjected to heavy winds and had been kept idle in the wrong position, in violation of the operation instructions issued by the manufacturer.

According to the instructions, the crane’s main arm should have been lowered when not in use or during instances of heavy winds.

The bureau also pointed to the lack of compliance with safety standards in the operating procedures, no respect for the safety requirements, and poor communication and monitoring by safety officials responsible for the project during the poor weather conditions, despite warnings by the Presidency of Meteorology and Environmental Protection.

The defendants were also accused of failing to measure the speed of the wind and to respond to a number of letters from concerned authorities to review the condition of the several cranes at the site, especially the crane that fell.

The bureau called for holding the contractor, Saudi Bin Laden Group, partially responsibility for the accident, due to these reasons, as well as for reexamining the contract of Kansas Advisory Company and all cranes involved in the project, and to make sure that all safety and security conditions are met.

Following the incident, King Salman bin Abdulaziz called for referring the results of the investigation and related evidence to the Bureau of Investigation and Public Prosecution to complete the investigation of the Bin Laden Group, as well as to prepare a list of charges to be presented to the judiciary.

The order also asked Saudi Bin Laden Group to comply with the decision reached.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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News Network
April 28,2020

Dubai, Apr 28: Riyadh municipality has announced 13 requirements to restore commercial activity in malls starting Wednesday (April 29), in accordance with the government’s coronavirus precautionary measures.

The requirements include: the continued closure of all entertainment and playing areas inside malls, and not allowing the entry of children under the age of 15.

The municipality requires all malls to ensure the availability of medical examination and sterilization teams to measure the temperature of all individuals entering the mall at all entrances throughout opening hours, prevent any person with a temperature exceeding 38 degrees Celsius from entering, remove all chairs and benches in the corridors, and provide masks and gloves for visitors at the entrances.

All malls are to have security personnel stationed at all entrances to ensure that visitors are wearing masks.

The municipality also requires all malls to sterilize the entire facility every 24 hours, allocate rooms for medical isolation when there is any suspicion of an individual being infected with COVID-19, ensure the presence of a sufficient number of security personnel, and carry out regular rounds to verify full compliance, and suspend the valet service.

It also called for malls to put up explanatory signs of the guidelines to ensure that everyone understands the precautionary measures.

Malls should rely on the use of escalators and stairs for movement between floors, and in the event they are not available, only two people are allowed to ride the elevator at a time.

Revised curfew

Saudi Arabia had revised on April 21 its coronavirus curfew timings for the holy month of Ramadan, allowing residents in all areas and cities not currently under a 24-horu lockdown to go out between 9 a.m. and 5 p.m.

However, areas under a complete lockdown will only be allowed to go out for essential needs, such as grocery shopping or medical visits, between the hours of 9 a.m. and 5 p.m. Residents in these areas must stay within their neighborhoods

A 24-hour lockdown was previously imposed on the cities of Riyadh, Tabuk, Dammam, Dhahran, and Hofuf and throughout the governorates of Jeddah, Taif, Qatif, and Khobar.

The government had imposed a full lockdown on the holy cities of Makkah and Madinah as well. Other cities and governorates had a curfew implemented from 3 p.m. to 6 a.m. daily.

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News Network
April 25,2020

Riyadh, Apr 25: Saudi Arabia announced nine deaths and 1,197 new cases of the COVID-19 virus on Saturday.

Of these cases, 120 were recorded in Madinah, 364 in Makkah, 271 in Jeddah, 170 in Riyadh and 43 in Dammam.

The number of people who had recovered from the coronavirus in the Kingdom increased to 2,214 after 165 patients were reported to have recovered.

A total of 136 people have died of the disease in the Kingdom so far.

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