KPC owes cash to many govt institutions

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KUWAIT CITY, Dec 15: Despite its need for billions of dinars to run its business and implement its oil projects, Kuwait Petroleum Corporation (KPC) remains a creditor to many government institutions, including the Ministry of Oil and Ministry of Electricity and Water, reports Al-Rai daily. According to informed sources, KPC’s dues with the Ministry of Oil for its use of the oil complex building tower amounted to about KD 30.336 million since 2006, with a monthly rental value of KD 158,000, without concluding a lease contract that regulates the relationship and preserves the rights of both parties.

The volume of KPC’s claims against the Ministry of Electricity, Water and Renewable Energy until March 31, 2022 amounted to about KD 8.897 million that have passed more than 360 days for previous years, in addition to KD 1.149 billion for claims that have passed more than 30 days but less than 360 days. The sources attributed the reason for not collecting these debts to the lack of budget covering the outstanding bills for the previous fiscal year, in addition to a difference in quantities between the readings of the ministry and some of KPC’s subsidiaries, as per which there are non-agreed amounts amounting to about KD 10.392 million.

The sources stressed that KPC’s delay in collecting revenues from its fuel sales to the Ministry of Electricity, Water and Renewable Energy during the 2021/2022 fiscal year, with the ministry not paying a number of invoices until March 31, 2022, contradicts the agreement between the two parties. On a related note, the sources explained that there are other KPC claims against some of the Maritime Administration’s clients, which amounted to 102 claims with a total value of USD 54.512 million which was agreed upon, but was not collected until the end of the 2021/2022 fiscal year, including claims older than year in the amount of USD 7.338 million, or 13.5 percent of the total value of claims, in addition to many claims that have not been agreed upon, amounting to USD 41.595 million.

There are unresolved claims against some of the Maritime Administration’s clients that exceeded the six year statute of limitations according to the English law applicable in the contracts concluded, as the number of those claims amounted to 63 claims amounting to USD 2.188 million, some of which date back to 2010. This contradicts the rules for implementing the budgets of independent institutions.

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