Add News     Print  
Article List
PAI takes legal measures against firms violating regulations in FTZ ‘MEW not to renew contracts of some consultants’

KUWAIT CITY, Jan 21: The Public Authority for Industry (PAI) started taking legal procedures against the companies found to have violated regulations in the Free Trade Zone at a time the Free Trade Zone Department at the Ministry of Commerce and Industry finalized its replies to the comments of the State Audit Bureau on the alleged irregularities in the area, reports Al-Watan Arabic daily quoting sources.

The authority has asked three big companies to change their contracts with Kuwait Ports Authority (KPA) and sign new contracts with PAI; otherwise, they will be asked to vacate the area. Sources confirmed the responses to the observations of the bureau have been forwarded to the undersecretary of the ministry to take the necessary legal procedures. Sources disclosed the responses include a brief account on the steps taken by the ministry and PAI on the free trade zone issue; particularly the right to operate in the area until Dec 31, 2013. This is in addition to the used and unused sites, as well as the procedures taken concerning the privilege to use the fifth storage area.

Sources said the replies also touched on the correspondences of the Fatwa and Legislation Department on 68 contracts that were not approved, while unveiling a plan to file cases against those who benefited from the contracts. Sources added the total amount due from the privilege to use the zone is KD 719,516; indicating the amount collected in the first half of last year was KD 467,398 and the balance of KD 253,000 will be handed over to the ministry this week. On the other hand, sources confirmed the Cabinet has started taking steps to limit expenditures in various government institutions in a bid to prevent depletion of public funds. Sources said the steps include the conservation of electricity and water; adding that the country’s surplus for fiscal 2012/2013 is estimated at KD 12 billion, while the amount of deposits to the Future Generations Fund for two financial years totaled KD 13.5 billion.

Meanwhile, the Ministry of Electricity and Water has no intention to renew the contracts of some consultants as a cost-cutting measure. According to reliable sources, the contracts of three consultants, who worked in the ministry from Jan 1, 2011 to Sept 1, 2012, were not renewed and the same step will be taken for those whose contracts will end soon. Sources explained the decision was taken after the submission of huge electricity and water projects to the Initiatives System. Sources said the ministry decided to let go of consultants regarded as a financial burden.

Read By: 1971
Comments: 0

You must login to add comments ...
About Us   |   RSS   |   Contact Us   |   Feedback   |   Advertise With Us