VERBAL TUG-OF-WAR ON KPC PROFIT TRANSFER

KUWAIT CITY, May 2: Chairman of the parliamentary Budgets and Final Accounts MP Adnan Abdulsamad urged Finance Minister Barrak Al-Shitan to maintain a strong position and defend his decision to transfer the reserve profits of Kuwait Petroleum Corporation (KPC) to the Cabinet.

He disclosed the committee has been requesting for this action for several years now, indicating the Council of Ministers should form a committee to investigate the claim of the oil minister that KPC will incur huge losses due to the decision of Al-Shitan.

He pointed out the argument of the oil minister that his ministry needs these reserve profits for the completion of ongoing projects can be disproved.

He stressed these projects are not urgent, disclosed that Kuwait Investment Authority (KIA) invested KD 5 billion in the interest of KPC. He said KPC is free to retrieve the investment any time and the reserve profits have been placed in longterm fixed deposits – a manifestation that KPC does not need the money urgently.

He added an agreement was reached during his committee’s meeting on the final accounts of KPC to put the latter’s reserve profits into the Public Reserve Fund in order to use the money for addressing the State budget deficit.

On the other hand, MP Majed Al-Mutairi criticized the threat made by some members of KPC’s Board of Directors to resign in protest of the decision of the finance minister.

He wondered about the motivation behind such a position, considering the current circumstances the country is undergoing due to the coronavirus crisis. Commenting on the issue, MP Ahmed Al-Fadl stressed the importance of controlling the behavior of senior officials in the oil sector.

He asserted these officials should not be left to take whimsical decisions. He underscored the need to closely monitor oil sector decisions to prevent enormous losses, citing the investment in Vietnam which caused billions of losses for the sector.

“The employees did not break into the State treasury to collect KD 50 million as overtime pay, the senior officials made this happen when they declared the working days suspended due to the coronavirus crisis as paid holidays rather than rest days. Senior officials in the oil sector behave as if they live on an island, away from the State,” he concluded.

Meanwhile, MP Abdullah Al-Kandari forwarded questions to Minister of Information and State Minister for Youth Affairs Muhammad Al-Jabri on what he considers failure of the Public Authority for Agricultural Affairs and Fish Resources (PAAAFR) to ensure ample supply of local produce for the country to be self-sufficient in terms of food production.

He asked about the total number of farms distributed since 2010, size of each farm, number of farms withdrawn from beneficiaries, reasons for withdrawal, total quantity of local produce sold in local markets since 2010, and if studies were conducted to determine the contribution of the agricultural sector in maintaining food security.

In addition, MP Sa’adoun Hammad submitted queries to Minister of Health Dr Bassel Al-Sabah about the visiting Chinese medical team.

He requested for a copies of the report presented by the team; minutes of meetings between the team, local medical crews and officials; comments and recommendations of the visiting team; and plan of the ministry to implement the recommendations.

By Saeed Mahmoud Saleh Arab Times Staff