KUWAIT CITY, April 11: The State Treasury lost 3.843 million dinars that should have been collected from the Heritage Village project after the Finance Ministry canceled the contract after 15 years, reports Al-Rai daily.
An official source at the Kuwaiti Municipality told the daily that in terms of the government’s follow-up performance report to the Municipality, and the recommendations that have already been submitted to the concerned government authorities, indicated the historical sequence of the project and the reasons for the cancellation of the contract.
The source pointed out that “the value of fines due to the company invested as of November 25, 2007, and a maximum of 10 percent of the value of the works, up to 2 million and 424 thousand and 50 dinars, while the value of annual rents that were supposed to start collection as of April 1, 2008 until April 1, 2018 works out to 1.419 million dinars, at a rate of 129,000 dinars annually.
The source said that “among the findings of the Government Performance Monitoring Agency, the State’s use of this project and the expected financial returns, and the land allocated to the project was about 76 thousand square meters without the use of other economic or commercial activities. The public money was lost for not collecting the annual rental value owed by the company which invested throughout those years, as well as fi- nancial fines as a result of the company’s breach of obligations.