KUWAIT CITY, Aug 24, (KUNA): Kuwait Airways Corporation (KAC) announced Tuesday that it was strongly criticized after taking loans from local banks according to regulations because of shortage in liquidity.
KAC Chairman and Managing Director Hamad Al-Falah told KUNA that the corporation took loans because its final accounts from the financial year 2004/2005 until now had not been approved.

That means that KAC did not receive all sums due, which equal KD 190 million since six years because they were delayed by the National Assembly’s budget and final account committee, he added.
To be able to operate its flights, KAC is struggling to get loans from local banks, he said.

It is not the first time that KAC has been forced to take loans due to liquidity shortage, he said, adding that the Cabinet gave it permission in 2003 to take loans of KD 100 million, after the National Assembly’s committee delayed its accounts.

Al-Falah pointed out that its financial lists, like the list of cash flows, are approved by two of the four biggest international auditing companies.