PHOTO
01 August 2017
JEDDAH — Saudi Oger finally downed its shutters on Monday after almost four decades of its existence in the Saudi market. It was incorporated in January 1978 with headquarters in Riyadh.
The initial paid up capital of SR1 million ($267,000) was subsequently increased to the present level of SR750 million.
Of late, the company was in dire financial straits and was unable to pay salaries and other emoluments to its Saudi and expatriate employees.
A source close to the company told Saudi Gazette/Okaz on Monday that the National Electricity Company (NEC) has cut off power from the company's headquarters and offices in several areas of the Kingdom.
The source, who preferred not to be identified, said the company has handed over three of its projects to others in an attempt to mitigate increasing financial pressureas.
The source explained that the projects included a construction contract in Mina and a 15-year repair and maintenance contract of King Abdullah University for Science and Technology.
The source said files on the emoluments of the Saudi and expatiate staff have been handed over to the Ministry of Labor and Social Development (MLSD).
The ministry has informed the staff that payment of their delayed salaries was not certain because the company does not have any assets.
The source, however, said the ministry had no doubts that the delayed salaries of 14 months would finally be paid but did not fix the date or the modality.
He said the expatriate employees of the company have hired lawyers to follow up the case of delayed salaries and other fringe benefits.
According to him, the MLSD has asked the Saudi staff to file a case against the company.
JEDDAH — Saudi Oger finally downed its shutters on Monday after almost four decades of its existence in the Saudi market. It was incorporated in January 1978 with headquarters in Riyadh.
The initial paid up capital of SR1 million ($267,000) was subsequently increased to the present level of SR750 million.
Of late, the company was in dire financial straits and was unable to pay salaries and other emoluments to its Saudi and expatriate employees.
A source close to the company told Saudi Gazette/Okaz on Monday that the National Electricity Company (NEC) has cut off power from the company's headquarters and offices in several areas of the Kingdom.
The source, who preferred not to be identified, said the company has handed over three of its projects to others in an attempt to mitigate increasing financial pressureas.
The source explained that the projects included a construction contract in Mina and a 15-year repair and maintenance contract of King Abdullah University for Science and Technology.
The source said files on the emoluments of the Saudi and expatiate staff have been handed over to the Ministry of Labor and Social Development (MLSD).
The ministry has informed the staff that payment of their delayed salaries was not certain because the company does not have any assets.
The source, however, said the ministry had no doubts that the delayed salaries of 14 months would finally be paid but did not fix the date or the modality.
He said the expatriate employees of the company have hired lawyers to follow up the case of delayed salaries and other fringe benefits.
According to him, the MLSD has asked the Saudi staff to file a case against the company.
© The Saudi Gazette 2017
