KUWAIT CITY, Nov 5: The debts owed to government are divided into two parts; the first part is with individuals and companies while the other part is in the form of aid, such as oil for countries such as Egypt, Pakistan, Ethiopia and other friendly countries for an annual value ranging between KD500 and KD600 million, which is settled at the end of the fiscal year, reports Al-Qabas daily.
The daily quoting reliable sources indicated that part of the government-owed dues are bad or recurring debts, classified on this basis annually due to the fact that the debts cannot be written off, especially as public money does not expire, according to Kuwaiti laws.
With regard to the debts of individuals and companies, the same sources clarified that part of the debts on some ministries date back to the pre-invasion and post-liberation period, and constitute fees for violations or dues registered on deceased and expatriates who left Kuwait permanently or citizens who went bankrupt.
A large part of the debts of the Ministry of Electricity for example are bills owed by citizens, which have been rescheduled, and paid in installments.
The large volume of debt stock is in the books of the Customs General Department, amounting to KD 210 million, of which 80 percent is the balance of the debt of one company. “This case is before the court for years and the value of the dispute is KD 170 million, which explains the large size of customs balance in debts with third parties, noting the debt will not settled until after a final court ruling is issued”.
Sources added the debts of the Ministry of Justice amount to KD 40.5 million, most of which are owed by citizens, residents, and local and foreign companies, explaining that judicial rulings are issued against debtors, whether in form of fines in criminal and civil cases, while part of the debts are for judicial fines issued many years ago and haven’t been implemented.
They reported a sum of KD 35.3 million was lurking in the hands of government employees for the benefit of the Civil Service Commission, which were disbursed unjustly in the form of financial rewards or salaries paid to absconding employees, promotions or agreements with employees that were not concluded, as well as bonuses paid in error. They explained that part of the debts have been rescheduled for some employees and they pay in monthly installments, but still appears in its total sum on the government debt record.
Sources indicated that government debts owed by citizens amount to KD 65.4 million, of which KD 30.1 million are claims for the Ministry of Higher Education, adding the value of student tuition fees sent abroad by the state for the completion of their university studies and those at the local universities. It became clear later that they are in violation due to the condition of eligibility and the Ministry of Higher Education continued to disburse funds to them despite the suspension of their university registration or their dismissal.
Five main factors have been identified concerning the accumulation of government debts, citing oil facilities for some friendly countries that are repeated annually, recurring electricity and water bills, debts accumulated or rescheduled for the benefit of citizens or companies, financial claims that are still in the process of litigation, wrongful payment of salaries and bonuses to government employees, and tax dues for some companies.