Ministry proposes major agency consolidation to reduce costs

• The proposal from the Ministry of Finance included merging the Kuwait Direct Investment Promotion Authority, the Public-Private Partnership Projects Authority, the Privatization Program Agency, and the National Fund for Small and Medium Enterprises Development.

Confirming the report published by Al-Anba newspaper on August 9 about the cancellation and merger of certain government agencies, the Ministry of Finance has proposed to the General Secretariat of the Council of Ministers to consolidate and eliminate some agencies, bodies, and institutions due to overlapping functions, streamlining operations, and reducing costs.

The proposal from the Ministry of Finance included merging the Kuwait Direct Investment Promotion Authority, the Public-Private Partnership Projects Authority, the Privatization Program Agency, and the National Fund for Small and Medium Enterprises Development.

It also proposed merging the agencies related to privatization and partnership between the public and private sectors to attract investment, accelerate development, and encourage local and foreign capital. This, in turn, aims to streamline the documentary cycle that projects undergo from decision-makers and ensure the timely implementation of projects in accordance with the development plan.

Additionally, the proposal seeks to reduce the legal and administrative entanglement among some government agencies that leads to a lack of clear vision for private sector investors, who are essential for contributing to development.

The proposal also included merging the Central Agency for Information Technology, the General Authority for Communications and Information Technology, the National Center for Cybersecurity, and the communications sector under a new name: “Digital Transformation and Communications Authority.” This change is aimed at addressing the overlapping responsibilities between the authority and the General Authority for Communications, which is responsible for supervising the Central Agency for Information Technology.

Additionally, the proposal included merging the Public Authority for Civil Information and the Central Administration for Statistics to unify official statistics, increase productivity, and avoid duplication of work.

It also proposed merging the Expropriation Department with the Financial Controllers Authority, resulting in the Expropriation Department becoming the State Property Sector Department within the Ministry of Finance, while the Financial Controllers Authority would become a sector within the Ministry of Finance.

The proposal also included the abolition of the Public Authority for Land Transport and its merger with the Ministry of Public Works, the merger of the Public Authority for Agriculture and Animal Resources with the Public Authority for Food and Nutrition under the name of the Public Authority for Food Security, and the merger of the Kuwait Institute for Scientific Research with the Capital Markets Authority.

This consolidation is based on the service-oriented nature of these entities, which is similar to the work of ministries, government departments, and agencies with attached budgets. These entities are mainly funded from the budgets of ministries and government departments, as their own revenues are limited, despite having independent legal personalities.

The Ministry of Finance proposed merging the Competition Protection Authority with the Insurance Regulatory Unit (Trade). Since its establishment, the Competition Protection Authority has generated only 3% of the expected revenues for the state treasury, despite its law stipulating that it would generate significant revenues from fees or penalties according to Article 24 of its establishment law. The Insurance Regulatory Unit will become a sector within the Ministry of Commerce.

Additionally, the Supreme Council for Planning and Development was abolished due to the existence of the General Secretariat for Planning and Development. The Public Institution for Housing Care and the Credit Bank were merged under the name of the Housing Finance and Care Institution because of the similarity in their competencies.

The Financial Investigations Unit was merged with the National Human Rights Bureau within a program in the Ministry of Justice, and the judiciary was separated from the Ministry of Justice, forming an affiliated body named the ‘Judicial Authority,’ with the Minister of Justice serving as the competent minister.

Finally, the General Administration of Customs was transferred to the Ministry of Interior due to the similarity of its functions related to control, inspection, and oversight, and the Holy Quran Printing Authority, the General Secretariat of Endowments, and the Zakat House were merged with the Ministry of Endowments due to the similarity of their competencies.

The merging of the Youth Authority, the Sports Authority, and the Anti-Doping Authority is proposed due to the similarity in their functions, along with the merger of the Kuwait News Agency with the Ministry of Information because of the similarities in their specializations.