SPIMACO receives final inspection report on violations by former management of subsidiary

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) received the final report issued by the designated international advisory office on violations related to the former executive management of a subsidiary.

The company’s management believes that the financial provisions and settlements it has hedged in the consolidated financial statements for the year ended Dec. 31, 2019, will be sufficient to meet any substantial financial obligations that might result due to the violations described in the report of the advisory office.

The final report will be submitted to the audit committee for consideration to raise its opinions and recommendations for the board of directors to be discussed and take the necessary legal measures in this regard, SPIMACO said in a bourse statement.

Any updates in this regard will be announced later, the statement added.

In March, the company received a letter from a subsidiary related to suspected administrative violations committed by the previous executive management, in addition to the internal audit committee's decision on holding related probes, according to data compiled by Argaam.

SPIMACO did not mention the name of the subsidiary company.