KUWAIT CITY, July 9: The issue of “diplomatic immunity enjoyed by about 20 employees of the Kuwait Investment Office in London” has resurfaced, and sources with insider information have warned of “mismanagement.”

A London court convened recently to determine whether the Kuwait Investment Authority possesses sovereign immunity in a labor case filed by the former Kuwait Investment Office CEO. Notably, the Authority’s leaders were absent, citing their inability to travel.

Sources indicated that nearly a year and a half after former Finance Minister Abdul Wahab Al-Rasheed left his position at the KIA, Kuwait’s investments and reputation continue to suffer due to his reckless decisions.

A European court had previously ruled that the KIA does not enjoy immunity. If the Authority is confident in its position, why doesn’t it confront the issue directly instead of hiding behind immunity?

The British courts will now scrutinize all the office’s activities, potentially placing the Authority’s operations under intense examination.

One source questioned, “If the KIA is confident of its stance on the labor issue, why not confront it directly rather than hiding behind immunity and risking its revocation?” They noted that British courts will now evaluate whether the KIA activities in London are sovereign or commercial, which could have significant implications for the Authority’s current and future activities.

Meanwhile, Al-Seyassah posed a question to the British Ambassador to Kuwait, Belinda Lewis, regarding whether the British government considers the KIA investments in stocks, bonds, and real estate in Britain as sovereign or commercial acts. However, there has been no response thus far.

The Audit Bureau’s report on the 2021/2022 budget implementation revealed that the Kuwait Investment Office in London manages portfolios beyond the Future Generations Fund, including portfolios for the Kuwait Petroleum Corporation and the Kuwait Foundation for the Advancement of Sciences. Public disclosure of these portfolios could result in them being subjected to taxes, potentially impacting Kuwait’s reputation.

 In the fiscal year 2022/2023 report, the Audit Bureau advised the KIA and its law firm to avoid using diplomatic and sovereign immunity as a defense in employee lawsuits. However, the KIA continues to invoke sovereign immunity in the labor case, raising questions about their rationale.

 It’s worth noting that a Swiss court ruled in 1994 that the KIA did not enjoy immunity in a case related to Spanish investment scandals. The sources questioned whether the Finance Minister and the Managing Director are aware of this and what the Board of Directors’ stance is on the potential disastrous consequences of their decisions.

Sources called for government intervention to halt the Authority’s mismanagement, questioning when failing officials would be dismissed and held accountable.

They emphasized that it is in the public interest to prevent ongoing mismanagement of funds intended for future generations.

The Kuwait Investment Office in London manages approximately $250 billion of the Kuwait Investment Authority's total assets.

Al-Seyassah Special Report