Fake firms :: Khaleej Times

Quote:

"Unfortunately, some nationals are involved in licence racketeering and are living on that. Such people know nothing about the operation and status of their companies," he pointed out.

"In a certain case, the ministry succeeded over two years to pressurise a national who was the partner, owner and local agent of more than 20 companies to cancel the false companies. Despite that he is still facing problems with some of the eight remaining companies. What sort of business did he have? And, shouldn't he personally supervise the working of the companies, or at least follow up on what is happening there? wondered the official.

He added that the proposed computer link and other rules will help prevent the occurrence of such mess in the future.

I wonder what government regulations cause such behavior? As always, the comments are open for your suggestions.