KUWAIT CITY, May 4:  The parliamentary Finance and Economic Affairs Committee continued Tuesday deliberations on the privatization draft bill in the presence of officials from the Ministry of Finance, Public Authority for Social Security (PASS) and Audit Bureau, says Committee Chairman MP Yousef Al-Zalzalah.
Confirming the panel approved most of the amendments presented by the government, Al-Zalzalah said there are only four remaining proposed amendments which will be discussed on Wednesday.  He said the panel reached an agreement with the government that the latter’s ownership of ‘golden’ shares in privatized institutions should be mandatory.  The committee also approved a recommendation that the shares allocated for those below 21 years should be free of charge as a governmental grant to allow them to participate in future investments.
Utilities
On the privatization of public utilities, Al-Zalzalah said some constitutional provisions have been included in the bill to identify the facilities or departments which will be privatized.
Explaining the mechanism of the state’s subscription for citizens, Al-Zalzalah admitted the committee has no idea on the institutions that will be privatized but it will cost the State nothing as these institutions have been in existence for quite some time and own assets which will be evaluated to determine the prices for citizens.
Asked about the four remaining amendments, Al-Zalzalah disclosed these are related to certain procedures on allowing the minors to sell shares and increasing the number of shares.  He added an agreement has been reached earlier that in case nobody subscribes to the shares allocated for citizens, they will automatically go to the State or will be distributed equally to the citizens.  However, this proposal still requires majority vote to get through, he clarified.
On the exclusion of the oil sector from the privatization process, Al-Zalzalah stressed there is an article which stands by itself and prohibits privatization of oil, natural gas, education and health unless a separate law is ratified in this regard.  He believes the oil sector should not be privatized even through the issuance of a separate law.
Abstain
MP Dr Jamaan Al-Harbash urged the MPs, who own public companies listed on the bourse, to abstain from voting on the privatization draft bill.  He contended 35 percent of the shares of listed public companies will be privatized upon approval of the bill, so any MP, who owns a listed company, will have personal  interest on the proposal; hence, the need to abstain from voting.
Al-Harbash said the Development and Reform Bloc has presented amendments to the bill, such as the need for companies listed on the bourse to operate in accordance with the Islamic Sharia; exclusion of oil, natural gas and public facilities from the privatization process; and allowing people to invest in these sectors according to the law and within a specific period without any transfer of ownership.  He expressed disappointment over the amended articles, contending the Constitution prohibits the privatization of oil and gas sectors, so public utilities should also be excluded.
In another development, the Legislative Affairs Committee has outrightly rejected a request to lift the immunity of lawmakers Musallam Al-Barack, Mohamed Hayef and Khaled al-Tahous.
Head of the panel Hussein Al-Huraiti said the committee also rejected a decree on imposing harsher punishments on those who abuse police forces, army or national guards. He revealed the panel will submit a draft bill in this regard to the Parliament rather than a decree since it is not urgent.
The panel also approved, in principle, a proposal on banning interests in the local banking system, Al-Huraiti added.