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Fake salaries cost government KD10 million monthly
August 9, 2014, 5:52 pm
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According to reports from the government office responsible for labor, private companies in Kuwait are conning the government out of KD10 million each month by falsifying data about Kuwaiti nationals employed by them as part of fulfilling their nationalization quotas. Private companies must employ Kuwaiti nationals to meet nationalisation quotas in order to qualify for expat working visas and other government financial incentives.

The government for its part partially subsidizes the salaries paid to the Kuwaitis employed by the private sector. However, while proof of salaries paid has to be shown, there is no requirement to prove the Kuwaiti attends work. The Manpower and Government Restructuring Program (MGRP), a Kuwait government organization under the Civil Services Commission, said about 40 percent of positions registered as being held by Kuwaiti nationals in private companies were fake, and that almost half of them do not attend work.

The MGRP, which specializes in training, finding jobs and encouraging Kuwaiti employees to work in the private sector, added that many of the positions did not exist, while in other cases ‘employees’ were on the books but did not work. A new labor body is presently being established and due to come into force early next year. The source at MGRP said that though it was an interim body, it would soon begin conducting inspections on private firms suspected of creating fake Kuwaiti employment roles, and such firms would be forced to repay any government financial benefits obtained. 

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