02 June 2016
JEDDAH: As Saudi Binladin Group workers gathered in Jeddah this week to protest the non-payment of salaries, reports are emerging that the company plans to sell some of its property and other assets so that it can pay its debts.

A source was quoted as saying by a local publication on Wednesday that the troubled firm is taking this action to pay employees. Workers that have been protesting this week were angry over non-payment of their end-of-service dues that would allow them to travel home before Ramadan, the source said.

Security forces had to disperse a large crowd that had gathered outside the company, after sealing off Al-Hamadinia neighborhood, north of Jeddah. Some workers claimed they had not been paid for six months.

The source said the company has projects worth SR490 billion, but several worth SR248 billion are in jeopardy. The delayed payment to workers would worsen matters for the firm, the source was quoted as saying.

Several protesters said they could not understand why the firm was not able to pay its workers speedily before Ramadan, especially since the government had lifted its ban on providing it contracts, the report stated.

Ali Al-Ghamdi, an employee of the company, said the group's management should have worked more seriously to solve the crisis after the royal decree. He said the company had received a loan of SR2.5 billion from Saudi British Bank and National Arab Bank, which it should have used to cover its expenses.
 
Binladin spokesman Yaseen Al-Attas, said the company does not comment on its financial affairs or its relations with partners. He said the company is committed to paying employees and finishing contracted projects on time.

© Arab News 2016