A disagreement has surfaced between the State Audit Bureau and the Health Insurance Hospitals Company (HIHC) regarding the Bureau’s jurisdiction to review the company’s operations based on the mandate granted to it by the National Assembly.
Sources told Al-Jarida daily that the company contends that the Bureau lacks the right to audit its activities, as it asserts that government ownership in the company stands at a maximum of 24%, a perspective not shared by the Bureau which asserts that government ownership is at 74%.
In this regard numerous meetings and exchanges of opinion have taken place between the two parties since the mandate was issued, with both sides maintaining their stances and reaching an impasse.
It is noted that Deputy Prime Minister, Minister of Oil, Minister of State for Economic Affairs and Investment, and Acting Minister of Finance, Dr. Saad Al-Barrak, has urged the Kuwait Investment Authority to direct the company to facilitate the Audit Bureau in carrying out its auditing duties as mandated by the National Assembly. However, the company remains resistant to this request.
The sources indicate that the Bureau will give the company a final opportunity, setting a deadline. Should the company fail to comply, the matter will be referred to the National Assembly. In such an event, a communication will be sent to the Assembly outlining the Bureau’s inability to fulfill its duties due to the company’s refusal to cooperate.
During a session held on July 11, a letter was unanimously approved by the Council, with participation from deputies and the government. This letter directed the Bureau to thoroughly examine and audit all administrative, financial, legal, investment, and technical aspects of the Health Insurance Hospitals Company. The directive required the Bureau to present its report within 3 months and provide a biannual status update on the company’s affairs.
It’s important to note that Clause Four of Article 5 in the Legislation Establishing the “Audit” confers on the Bureau the authority to exercise financial oversight over companies or institutions in which the state or another public legal entity holds a stake in the capital, amounting to no less than 50%, or guarantees a minimum level of profits for them.
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