MP finds fault in KD 20bn debt bill

KUWAIT CITY, April 8: MP Riyad AlAdasani voiced objection to the bill submitted by the government regarding the KD 20 billion public loan, stressing that there are many other options.

In a press conference, the lawmaker pointed out the parliamentary Budgets and Final Accounts Committee had earlier presented a number of alternatives and the previous National Assembly approved some of these alternatives.

He revealed the available options include allowing the government to obtain loans from the Future Generations Fund, which stands firmly on solid ground and finances itself through its own gains as an investment fund.

He added that about KD 20 billion of the gains are in the custody of some public institutions and ministries, asserting the Assembly agreed to transfer KD 8.7 billion of these gains to the State treasury in order to fortify the public reserve fund for several years.

He inquired about the aim of such a bill, which will turn Kuwait into a debtor State, especially at such a critical time when the country is suffering from economic paralysis.

He suggested suspending the deduction of 10 percent from the State revenues for the Future Generations Fund and merging the fund with the public reserve in order to address the annual public budget deficit.

He also called on the government to settle the petty cash fund which reached KD 4.2 billion. He stressed the importance of expediting the collection of payments for loans that some public institutions obtained from the government – about KD 9 billion.

He said the government allocated KD 6.2 billion for armament – KD 3.2 billion from the public budget and the rest from the public reserve. He disclosed the money taken from the public reserve should have been refunded to the public budget a number of years ago.

He is against attempts to link the public budget deficit with the capability of the government to pay the citizens’ salaries. He urged the government to seek other solutions like rationalizing expenditures and putting an end to financial violations such as the hospitality case of the Interior Ministry.

He added the previous Assembly approved the bill allowing the government to issue securities worth KD 3.5 billion by the end of 2023, in addition to KD 4.5 billion by the end of 2027. He asked: If the law is still in effect, why is the government demanding for more? Why does the government demand for KD 20 billion loan based on a study conducted in February 2020 – before the big changes occurred?

He urged HH the Prime Minister Sheikh Sabah Al-Khalid and the oil minister to refrain from granting a huge discount on oil. He pointed out that Kuwait’s oil was sold at $16 per barrel on April 1, 2020; while the neighboring countries sold their oil at $22 to $24 per barrel on the same day.

He asked the Central Bank of Kuwait governor to monitor the purchasing power of the national currency as it is declining, warning this will lead to inflation which will negatively affect the prices of commodities and services.

On the other hand, MP Ahmad Al-Fadl called for the cancellation of the sponsorship system and replacement of sponsors with an official body like the Public Authority for Manpower (PAM) or expanding the scope of work of Durra Domestic Recruitment Company to cover all expatriates, indicating the official body must be monitored by the government.

Al-Fadl, who is currently in quarantine, posted the statement on his Twitter account. He went on to say that since 2009, the Ministry of Social Affairs has been promising to cancel the sponsorship system; and every time, it justifies the delayed implementation of the decision by giving lame excuses such as the need to conduct technical studies.

He pointed out the government stated in 2010 that it is putting the final touches on the decision; “but in 2018 we were surprised when the government cancelled the decision, instead of cancelling the sponsorship system.” He asserted this attitude of the government shows how powerful the visa traders are, to the extent that they can prevent the government from taking a decision for almost 11 years.

He clarified the cancelation of the sponsorship system does not necessarily require a special legislation, as it only needs a decision issued by the government to end the disaster, which is affecting the State and the poor expatriate workers as well.

In addition, MP Saadoun Hamad called on HH the Prime Minister to interfere in order to ensure payment of the salaries and pensions of citizens who retired shortly before the coronavirus crisis and whose retirement procedures were not completed because of the public holiday.

He said the newly appointed employees have not been paid their salaries for the same reason; made worse by the suspension of social subsidies granted by the Ministry of Social Affairs and PAM, because some of them have not updated their data.