Four parties cited that do not generate profits

KUWAIT CITY, April 17: Minister of Finance and Minister of State for Economic and Investment Affairs Khalifa Hamadah revealed that there are three government agencies - the Kuwait Petroleum Corporation (KPC), the Public Authority for Communications and Information Technology, and the Kuwait Ports Authority - that are still holding total sum of about KD 7.92 billion not yet referred to the State Treasury (the general reserve), reports Al-Anba daily. In his response to a parliamentary question by MP Marzouq Al-Khalifah, the minister explained that there are four parties that do not generate profits or transfer those profits annually to their own reserves. The seven government agencies whose profits must be annually transferred to the State Treasury are the Kuwait Credit Bank, Kuwait Petroleum Corporation, the Public Authority for Industry, Kuwait Ports Authority, the Central Bank of Kuwait, the Kuwait Fund for Arab Economic Development, and the Public Authority for Communications and Information Technology.

The Public Authority for Communications and Information Technology did not report the value of the profits made to the State Treasury, and the amount was paid at the end of March 2021. Regarding the value of the profits achieved by each of the independent bodies, the reason for not referring the profits, and the authority responsible for retaining the profits, Hamadah explained that the Kuwait Credit Bank does not refer profits to the Ministry of Finance, as the profits are fully transferred to the general reserve of the bank in accordance with the articles of association of the bank, which is based on Article No. 10 of law No. 30/1965 and its amendments.

The body responsible for withholding the bank’s profits is the Board of Directors. The Kuwait Petroleum Corporation did not report profits of KD 7.75 billion, and it was agreed with it to schedule them in installments. The Supreme Petroleum Council is the authority responsible for withholding these profits. The Public Authority for Industry has referred all sums of money to the general reserve, and there are no retained earnings in its possession. As for the Kuwait Ports Authority, the value of the profits that have not been supplied to date is KD 108.67 million. It was contacted on February 1, 2021 to expedite the payment of the sums owed to the State Treasury for the fiscal years 2017/2018 to 2019/2020. The Board of Directors is responsible for the custody of that money.

The Central Bank of Kuwait does not transfer profits to the Ministry of Finance due to the increase in the general reserve balance of the bank from KD 250 million to KD 1 billion, so the annual net profits are added to the reserve of the bank until reaching the ceiling of KD 1 billion. The Kuwait Fund for Arab Economic Development has not realized profits. The profits are fully transferred to the general reserve of the fund until the fund’s determined capital is fully covered. After covering the fund’s capital, all the net annual profits are credited to the fund’s reserve account in accordance with the fund’s articles of association issued in accordance with Law No. 25/1974 and its amendments.