15 construction sector firms to declare bankruptcy soon

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MoCI receives 13 requests for liquidation

KUWAIT CITY, March 5: The construction sector is facing several problems, mainly weak credit, fewer projects and failure in completing vital projects, which have in turn led to major losses for some projects. These problems have led to entrusting these projects to big foreign companies, reports Al-Shahed daily quoting sources.

They explained that 15 companies will soon declare bankruptcy due to lack or scarcity of liquidity and inability to meet their financial commitments for completing the suspended projects for more than three years.

Ministry of Commerce and Industry (MoCI) has received 13 requests for liquidation of some companies without mentioning the reasons, but it refused to sanction the liquidation of these companies in order to safeguard the rights of the shareholders and the funds of small investors.

The sources indicated that weak cash gush as well as administration problems have led some creditors to head to the ministry to liquidate some companies because profit margins have sagged in the past three years by more than 80 percent.

The specialized committees in the Public Authority for Manpower (PAM) are working hard to ensure implementation of the national manpower percentage in the private sector and to increase the value for appointing Kuwaitis from KD 100 to KD 300, reports Al-Anba daily quoting sources. Sources revealed the authority is currently taking procedures to increase the national manpower percentage by the beginning of April. Sources added the most important amendments include adopting the fourth global classification for mass media professions, especially the daily newspapers, in order to be categorized as business services like offices and engineering companies, law and consultancy firms instead of falling under the social services category. Sources disclosed the proposal stipulates increasing the percentage for business services from five to 10 percent. Sources went on to say there are other changes such as canceling jobs exempted from the national manpower percentage like drivers and laborers; while the percentage for the general trading and contracting sector is four percent

This news has been read 14711 times!