MEPCO says court revokes preliminary ruling, SAR 10M fine against WASCO

Logo of Middle East Paper Co. (MEPCO)

Middle East Paper Co. (MEPCO) announced that the Administrative Court of Appeal in Makkah issued a final judgment canceling a previous ruling and a fine of SAR 10 million against its wholly owned subsidiary, Waste Collection and Recycling Co. (WASCO), according to a statement to Tadawul. 

Under the “commitments and contingencies” section in its 2022 financial statements, MEPCO indicated that a subsidiary may be fined SAR 10 million on allegations that it was involved in fixing prices, the statement added. 

In the company’s capital increase prospectus, under risks related to lawsuits, MEPCO indicated that the General Authority for Competition (GAC) issued a decision to fine WASCO SAR 10 million for the latter’s alleged violation of Article 5 (1) of the Competition Law and colluding with competitors to set the prices of purchasing cardboard. 

Therefore, GAC issued a decision to initiate a criminal case against WASCO and others, and fine WASCO SAR 10 million. 

In February 2023, WASCO filed an appeal against this ruling, which was revoked in August 2023. 

The relevant financial impact will appear on financial statements for 2023, as MEPCO will write back SAR 10 million in provisions, the statement added.