Kuwaiti caught in MEW scandal Local firm manipulated US company orders

KUWAIT CITY, July 7: Official documents revealed new aspects of the Ministry of Electricity and Water’s (MEW) 2007 emergency scandal involving an American company established in the UAE, a Kuwaiti company and a Kuwaiti businessman who worked as a legal representative of the American-Emirati company, reports Al-Shahid daily.

Documents point out that in Oct 2007, the American-Emirati company authorized the Kuwaiti agent to perform all works and tasks of a contract for importing, installing, operating and maintaining turbines in South Doha power station as part of the 2007 emergency plan.
In 2008, based on the authorization which was granted in Jordan, the Kuwaiti agent authorized a well-known Kuwaiti firm working in the field of petroleum technicalities to implement all tasks and works in the contract. In 2009, the Ministry of Finance found out that American-Emirati firm gave up 99 percent of the mentioned contract to the Kuwaiti agent. MEW had earlier stated that the Kuwaiti agent company is not qualified to perform such tasks or similar tasks and that it only has the right to import chemical substances.
Surprisingly, the ministry continued to deal with this company based on the authorization regardless of whether it was qualified to do the job and regardless of the invalidity of bank credits.
The company is still operating and is supported by influential people. Sources say the Kuwaiti agent manipulated the orders more than once to deceive law and to extend contract periods to benefit from electricity projects. Furthermore, the American firm escaped the government tax of 15 percent assigned for such contracts.

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