Article 20 of the Saudi Anti-Bribery Law

This article deals with a practical question: what happens to the works a company is currently carrying out if a judgment of disqualification from contracting with government bodies is issued against it?

Background: Article 19 allows sentencing any private company or establishment, national or foreign, whose manager or one of whose staff was convicted of a bribery offense committed in its interest, to a fine not exceeding ten times the value of the bribe, or to disqualification from entering into contracts with government bodies to secure their purchases and carry out their projects and works, or to both.

What does this article add?

• If a judgment of disqualification of the company or establishment is issued under Article 19.
• Then the government body or bodies contracting with it submit to the Council of Ministers.
• What they consider appropriate regarding the works the company or establishment is carrying out.
• This includes contracting bodies even if they have no connection with the offense for which the judgment was issued.

The text does not specify what is done about those works and does not provide for termination or continuation of contracts automatically, but leaves the matter submitted to the Council of Ministers based on what each contracting body proposes.

Companies contracting with government bodies that face such a situation may consult a lawyer specializing in company matters or administrative matters.