From millionaire to trash picking

From millionaire to trash picking

March 18, 2016
From millionaire to trash picking
From millionaire to trash picking

A SAUDI man goes to Bahrain to start a business but falls into a debt trap and is wanted by the authorities in Bahrain and the Kingdom. The story line is a common one as businessmen who make poor investment choices are often unable to repay money borrowed from banks or other lenders, reports Alsharq newspaper.

In recent years, banks have teamed up with local governments to try to force loan defaulters to pay up, producing mixed results.

Ali Jafar Al-Miraihil, 36, from Al-Khobar was married to a Bahraini woman. Together they had four children — the eldest a 10-year-old girl, then twin boys aged 7 and the youngest, a girl aged only 8 months.

Al-Miraihil said after getting married, he began frequently visiting Bahrain and eventually decided to start a business there.

“Looking at the market in Bahrain, I realized there was a huge potential for successful investment. In 2003, I settled in Manama to establish an air-conditioning business. I applied for a commercial license from the Bahraini Ministry of Commerce and Industry and obtained one in 2004,” said Al-Miraihil.

He said he began signing contracts with big companies and his business grew and expanded to include other services such as cement and metal import for construction projects.

“I started with an initial capital of SR100,000, which grew to SR700,000 in a few years. Things were looking bright until I struck a deal with the contractors for Durat Al-Bahrain project. I bought raw materials needed to build 75 villas but the contractors never paid my bills,” said Al-Miraihil.

Right after he bought the materials, metal prices plummeted and the contractors refused to pay SR250,000 they owed him as per the contract. From then on, a number of contractors refused to pay him, burdening him with nearly SR1 million in debts.

“I had taken out bank loans and borrowed from many others, and I could not even pay 10 percent of the money back. I couldn’t file a lawsuit against my contractors because I was not left with any money,” said Al-Miraihil.

“I couldn’t pay my rent, nor could I find a job because the Bahraini police banned me from leaving the country and issued a warrant for my arrest. I sold everything I had and my only refuge was the Saudi Embassy in Bahrain,” he said.

To make matters worse, Al-Miraihil developed a medical condition that caused his left ear to bleed and secrete pus. Doctors advised him surgery, but it required at least SR360,000. Doctors told him that if he did not treat his ear or at least maintain regular medical checkups, the condition could be fatal.

However, with each visit to the doctor costing him SR300, he was left with no option but to wash cars on the streets and collect litter just so he could pay his hospital bills.

The Saudi Embassy paid off some of his debts and also his rent and medical bills. The embassy also provided him with a lawyer to defend his case if it went to court, but he claimed the embassy eventually turned against him.

“After a while, the embassy turned on me as well and Al-Khobar Police issued a warrant for my arrest because the embassy demanded that I pay back what it had spent on me. I was desperate so I went to the human rights commission but they refused to accept my case,” he said.

After pleading with his creditors to relieve him from some of his obligations, they agreed and he managed to pay a considerable amount back.

Al-Miraihil currently has SR300,000 in debts but a plea to the Saudi Ministry of Interior proved fruitful. It allegedly promised to cover his remaining debt of SR300,000.

Al-Miraihil says he has not received the money yet but once he does, he plans to return to the Kingdom.


March 18, 2016
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