Kuwait tightens financial control with enhanced debt recovery and audits

• Several government entities have been directed to enhance the efficiency of debt recovery, whether from government agencies or private sector companies.

To strengthen oversight of public finances and coordinate government efforts, supervisory bodies have instructed ministries and state agencies to focus on three key areas, which include improving financial statements, enhancing efficiency in revenue collection and expenditure, and tightening control over spending, particularly in subsidies. Additionally, there will be an emphasis on developing the personnel responsible for budgeting and monitoring implementation, according to Al Rai newspaper.

In this regard, the newspaper learned from informed sources that several government entities have been directed to enhance the efficiency of debt recovery, whether from government agencies or private sector companies.

Additionally, they are to focus on developing the capabilities of their employees in financial departments, auditing, and legal matters, which will improve the assessment of inspection results and the management of contracts.

The sources emphasized that this effort must be coordinated with the Ministry of Finance to address the debts owed by government entities. This coordination should provide accurate data reflecting the real financial capacity of each entity, including the amounts that need to be collected and the liabilities that must be paid.

Among the increased financial controls required on government disbursements, including monitoring contracts and their budgets, sources reported that the Ministry of Oil has been directed to tighten control over fuel sold in the warehouses of the National Petroleum Company while adhering to the Council of Ministers’ decision on the support of petroleum products ‘diesel and kerosene’.

Sources also indicated that regarding government dues, entities with overdue debts, including the Ministry of Transportation, have been instructed, in coordination with the Fatwa and Legislation Department, to file lawsuits against those who benefit from the ministry’s services but have not made payments, and to follow up on these lawsuits.

Additionally, regulatory authorities have asked several government agencies to comply with the decision of the Council of Ministers to establish inspection offices, enhance scrutiny and activation across all government agencies, and support them with appropriate staff. This includes ensuring the issuance of necessary reports and maximizing the benefit from the appropriations allocated in the draft budget for the state’s development plan.

The sources indicated that a control mechanism has also been directed to ensure proper follow-up on active contracts and to handle the procedures for offering, awarding, renewing, or extending contracts well before their expiration, in compliance with the budget implementation rules.

At the same time, regulatory authorities emphasized the need for ministries and government bodies to take serious measures to enhance internal control by improving the efficiency of staff in financial, administrative, and legal units, and by providing specialized training programs to clarify applicable laws and rules for budget implementation.

Overall, the regulatory bodies stressed the importance for government agencies to prepare the conditions and specifications for development plan projects in a timely manner, meeting all necessary requirements, completing contract procedures, obtaining regulatory approvals, and making the most of the appropriations allocated in the draft budget for implementing the state development plan.