Doha: The Ministry of Economy and Commerce yesterday set up a committee to probe complaints regarding proxy trading and refer the matter to the Attorney General for legal action.
The Cabinet last year issued a decision (No 31 of 2005) directing the Economy Ministry to form a special committee to look into alleged cases of shadow trading and refer them to the attorney general after verification.
The Minister of Economy and Commerce, H E Sheikh Mohamed bin Ahmed Al Thani, vide a decision (No 30 of 2006) issued yesterday appointed Mohamed Hasan Al Sadi, director of commercial affairs at the ministry, as chairman of the panel.
Members of the committee are from the Economy Ministry itself as well as from the Ministry of Interior and the Ministry of Finance.
Captain Mohamed Juan Samaan Al Hajri will represent the Interior Ministry in the panel, while the Finance Ministry will have Yusuf Abdullah Bilal as member.
Captain Abdul Rahman Mubarak Al Ali is another member from the State Security Agency, while Mohamed Ibrahim Mohamed Salem will represent the economy ministry in the said committee.
The panel will have jurisdiction as specified by Law No 25 of 2004 regarding combating shadow or proxy trading. The law forbids Qataris from lending their names and commercial registration to non-Qataris to help them carry out shadow or proxy trade in violation of the country's laws.
There are certain types of businesses like proprietorship, professional practice like engineering and audit consultancies and dealerships which are out of bound for non-Qataris.
Non-Qataris can own certain businesses in accordance with other laws and have partnerships with Qataris via LLCs.
The Law (No 25 of 204) forbids a Qatari from helping a non-Qatari to secretly conduct a business and specifies a jail term of up to one year or a minimum fine of QR20,000 and maximum of QR500,000 or both.
In case of conviction by the court in a proxy trade, both aprties (Qataris and non-Qataris involved) are to face the punishment aside from paying the court fee and applicable taxes.
The money involved in such a business is to be confiscated by the trial court.
The committee formed by the economy ministry yesterday is authorised to entertain complaints regarding proxy businesses.
It is to verify a complaint and refer the matter to the Attorney General for legal action.
The Peninsula has learnt that the economy ministry is already looking into several complaints and the panel formed yesterday is expected to verify them and forward them for legal action.
© The Peninsula 2006
