Delay in transferring retained profits by KPC proves existence of defect: Hamad

KUWAIT CITY, May 10: Political activist and former National Assembly candidate Ahmed Al-Hamad said the delay of Kuwait Petroleum Corporation (KPC) in transferring the retained profits and fabrication of pretexts in this matter proves and confirms beyond doubt that there is a defect, reports Al-Anba daily.

Al-Hamad added the Petroleum Corporation is using all tools to circumvent the right decision of the minister of finance at this difficult time amid complete desire to keep the retained earnings that are generating interests from banks or stocks. He explained that the use of retained profits in this manner is a clear and explicit departure from law, as the law establishing this institution does not authorize using the profits to buy shares or obtaining interest.

He declared the corporation is also seeking to persuade public opinion that it’ll use the profits in investment projects similar to previous projects it undertook and lost billions of dollars, at a time when all oil companies around the world greatly reduced their investment projects in light of the low oil prices and effects of the Corona virus. He expressed surprise at what he called “feverish activity and race to invent excuses that do not fool anyone”.

Al-Hamad concluded by affirming correctness of courageous decision by the Minister of Finance to transfer retained earnings to the general reserve in light of the difficult economic conditions Kuwait is going through, as is the case in all countries around the world. He stressed the action is reasonable instead of increasing pressure on employed citizens with the decision to deduct 1 percent of their salaries to face the consequences of Corona virus, as if the virus came to save the government, and the citizen’s pocket is considered the weakest link”.