KIA reveals about withdrawal of KD 22b from GRF since Jan ’13
‘Adm Decision No. 842/2015 regarding ‘transfer’ remains valid’
KUWAIT CITY, April 15: Kuwait Investment Authority (KIA) revealed about the withdrawal of about KD 22 billion from the General Reserve Fund (GRF) since Jan 1, 2013 until January 2017 with the aim of meeting financial obligations upon which decrees were issued, reports Aljarida daily.
This came in response to the parliamentary question presented by MP Rakan AlNesf concerning the funds spent from the General Reserve Fund since January 2013.
The main beneficiary was the Future Reserve Fund (FRF) with KD 15.5 billion, followed by the Public Authority for Social Security with KD 4.2 billion for covering actuarial deficit.
With KD 691 million, Kuwait Airways Corporation (KAC) came third in benefiting from the GRF’s withdrawal. This included KD 250 million for boosting the capital, and KD 441 million for covering losses.
In fourth place was the Family Support Fund which received KD 351 million.
Other beneficiaries are the Arab Fund for Economic and Social Development (AFESD) receiving KD 102.4 million for boosting its capital, Islamic Solidarity Fund for Development (ISFD) which received KD 90 million for boosting capital, Ministry of Defense which received KD 76 million for enhancing security, and Kuwait National Fund for Small And Medium Enterprise Development which received KD 55.5 million for boosting capital.
An equivalent of KD 55 million was paid for boosting the capital of the Islamic Development Bank. Also, KD 50 million went to the Communication and Information Technology Regulatory Authority (CITRA), KD 3 million to the International Islamic Trade Finance Corporation (ITFC), and KD 13 million to the Arab Authority for Agricultural Investment and Development (AAAID).
The withdrawal also benefitted the International Bank for Reconstruction and Development (IBRD) with KD 9 million, while KD 8.8 million went to the Arab Monetary Fund (AMF), KD 6.3 million to the Arab Bank for Economic Development in Africa (ABEDA), and KD 5.8 million to the Islamic Corporation for the Development of the Private Sector (ICD).
Remaining
The remaining amounts of KD 2.5 million, KD 300,000 and another KD 300,000 were given to the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Arab Investment and Export Credit Guarantee (AIECG) and the Domestic Workers Recruitment and Employment Company respectively for boosting capital.
Meanwhile, spokesperson of the Public Authority for Manpower (PAM) Aseel Al-Mezaid has said Administrative Decision No. 842/2015 concerning the terms of transferring residency from one employer to the other remains valid without amendment, reports Al-Rai daily.
Al-Mezaid discarded recent claims that transfer of residency from government contracts to private sector is allowed, noting a laborer on government contract can only transfer to the same employer or another sponsor on a new government contract at the end of the agreement, and the employer must cancel the work permit once the contract finishes.
She pointed out that work permits issued for laborers in the Free Trade Zone and those of foreign investors who practice economic activities according to law 116/2013 are not allowed to transfer, indicating the employer is required to cancel the work permit the moment the contract is over.
She disclosed that transfer of residency is possible among all sectors without necessarily completing a specific period, except for agricultural, fishing, grazing and industrial activities, in addition to government contracts that require the laborer to complete one year.
She reiterated transfer of residency is allowed after the dissolution of a body, declaration of bankruptcy, merger of establishments or instances where an establishment is sold or taken over by new owners.