Ministry mulls HQ investments to avoid violations, legal issues

• Sheikh Firas Al-Malik, Minister of Social Affairs, Family, and Childhood, received a letter from the Council of Ministers, tasking him with proposing investment opportunities for charitable associations in their headquarters within two months.

• Through investment, the ministry gains a financial source that aids in achieving its societal goals, as initially announced

To steer clear of ‘public benefit’ violations and rectify its illegal status, the Ministry of Social Affairs, Family and Childhood Affairs considered allowing investments within its headquarters. This decision was prompted by the increasing membership, which has now reached 150 civil society organizations and over 70 renowned charities.

Al-Jarida has learned that the Minister of Social Affairs, Family, and Childhood Affairs, Sheikh Firas Al-Malik, recently received an official letter from the Council of Ministers. This letter tasks him, in collaboration with the Ministry of Finance and the Kuwait Municipality, with presenting a proposal. The proposal should allow registered public benefit and charitable associations to utilize some of the vacant spaces within their headquarters for investment. The council requires this vision within two months.

According to sources, the ministry is in the process of forming a work team that includes the civil society and charitable associations departments, Al-Mabarat, representatives from the Ministry of Finance – State Property Administration, and the Kuwait Municipality. This team aims to discuss the matter comprehensively, particularly focusing on legal aspects, and conduct a thorough study on the feasibility of potential associations.

Through investment, the ministry gains a financial source that aids in achieving its societal goals, as initially announced. Subsequently, it submits this information to the Minister of Affairs, who then presents it to the Council of Ministers for discussion and a decision.

The sources mentioned the idea of allowing investment, stating, “Following the establishment of the fieldwork team by Administrative Resolution No. (2683) of 2023, tasked with inspecting the utilization of spaces within the headquarters of public benefit and charitable associations, the team completed its assigned tasks. It conducted an inventory of all spaces within the associations’ headquarters and noted their utilization.”

To ensure compliance with necessary licensing requirements related to the utilization of these spaces, the ministry has decided to study the idea of allowing associations to invest. This initiative is aimed at assisting them in achieving their goals.

Sources indicated that the move by the ministry came following communication from the finance ministry. This communication highlighted violations by certain associations in the country, which contravened their fundamental regulations by engaging in activities that contradicted their stated purposes, without prior contracts concluded with “state property.”

Sources added that the Ministry of Finance mentioned in its statement that “the State Property Administration has confirmed that numerous public benefit associations, registered in accordance with the provisions of Law (24/1962) regarding clubs and public benefit associations, are conducting activities on privately-owned state real estate properties without any affiliation.”

“A contractual agreement between these associations and the ministry, which constitutes a blatant infringement on state property,” prompted the ministry to take legal action in order to safeguard public funds.

The sources continued, “In the ministry’s effort to prevent association violations and rectify their illegal status, the idea of allowing investment within their headquarters emerged concurrently with their increasing numbers, which have reached about 150 civil society organizations, in addition to over 70 well-known charities.”