Riyadh – Mubasher: Al Gassim Investment Holding Company (GACO) announced the issuance of a final judicial ruling from the Court of Appeal in its favor in a financial claim lawsuit against former board member Abdullah bin Ibrahim Al Mahwas.

The ruling mandates Al Mahwas return a performance-based bonus of SAR 200,000 following a breach of his contractual and fiduciary obligations to GACO.

The legal dispute originated from a professional engagement in which GACO authorized Al Mahwas, acting in his capacity as a former board member and authorized representative, to finalize the issuance of ownership deeds for two agricultural plots of a larger agricultural project owned by GACO in Al Jouf region.

The completion of these administrative and legal procedures was a prerequisite for fulfilling the company’s obligations under a sales contract with the buyer, Fakieh Farms Poultry Company.

The final balance of this bonus totaling SAR 200,000 was paid to Al Mahwas based on a written pledge he provided, asserting that he would complete the deed issuance and the subsequent transfer of the properties to the buyer.

However, the company later discovered that Al Mahwas had utilized the legal powers of attorney granted to him to transfer the ownership of the two agricultural plots to a former employee of GACO.

Following this initial transfer, one of the properties was moved into the personal name of Al Mahwas, while the other remained under the name of the former employee. These transactions were conducted without the knowledge or authorization of the company.

The unauthorized transfer of these assets prevented GACO from completing the sale to Fakieh Poultry Farms and delayed the receipt of the sale price, which was valued at SAR 3.88 million.

To rectify the situation, GACO initiated separate legal actions to recover the properties. Those proceedings resulted in final judgments confirming that the plots were the rightful property of Fakieh Poultry Farms, effectively bypassing the defendant's actions.

GACO stated: “A reasoned judicial judgment was issued finding that the Defendant had failed to prove fulfillment of his obligations and that the transfer of the properties was ultimately effected pursuant to judicial rulings. The judgment was upheld by the Al Gassim Court of Appeal, ordering the Defendant to repay the full claimed amount on the basis that he was not entitled thereto. The company will proceed with the necessary legal measures to enforce the judgment against the defendant.”

The company also noted that it had retained external legal counsel to provide consultancy and representation throughout the litigation process.

As for the financial impact, GACO said this ruling is expected to result in the recovery of the SAR 200,000 bonus, stating that there are no further material legal or operational risks arising from this specific case.