Distressed Saudi Oger owes $800m to staff
French employees at the company who have not been paid for nine months have filed suits against the company in French courts
Saudi contractor Saudi Oger owes its employees, salaries amounting to $800m (SAR3bn), in addition to dues owed to contractors and exporters, and money to be repaid for loans from local and international banks, revealed by the French media.
French employees at the company who have not been paid for nine months have filed suits against the company in French courts.
A French lawyer is representing the 200 French employees working as engineers and managers on the company's projects in Jeddah, Riyadh, and Dammam.
Negotiations between the lawyer and the company reportedly have failed to lead to a resolution so far, reported Arab News.
Employees are demanding full payment of due salaries and compensation.
Saudi Oger, which is suffering tremendous losses due to liquidity crunch and low oil price, offered to pay dues for five and a half months only, but the lawyer rejected the offer.
Meanwhile, the French Embassy in Riyadh has been giving financial aid to the French employees to help them meet their expenses, including their children's school fees until the issue is resolved.
French Foreign Minister Jean Marc Ayrault, who visited Lebanon on 8 August, 2016 (Monday), said the French government is communicating with officials in the Kingdom and at the company to resolve the issue.