The Ministry of Finance has recently introduced a set of 15 rules to govern the use of prepaid credit cards by government agencies for their financial obligations.
The Al-Rai daily has learned that these guidelines aim to streamline the payment process and ensure responsible usage of the cards.
Here are the key points:
— The government agencies must compare offers from various banks to secure the best possible deal for issuing the prepaid cards.
— Prior approval from the Ministry of Finance is required to open a bank account for card issuance, based on the agency’s needs.
— The issuance of the card must be authorized by the Undersecretary of the relevant government entity or their designated representative, and the card should be registered in the entity’s name.
— The maximum limit for the prepaid credit card is set at 2000 dinars.
— The cardholder is personally responsible for its usage, and the department manager requesting the card shares joint responsibility. The trading of the card password is strictly prohibited.
— The card will be suspended if not used for three months or if the responsible employee is transferred. During an employee’s leave, the card must be handed over to the concerned department.
— Only Kuwaiti nationals can be entrusted with holding the cards, and issuing multiple cards to the same individual is not allowed.
— The card can only be used to purchase materials and services required by the government entity for its official work.
— The card can also be used for paying government agency fees for mutual government services that require automatic payment, subject to an agreement with the issuing bank.
— Certain provisions regulating commodity and material purchases are exempted from the card’s usage restrictions.
— All purchases must comply with the circulars issued by the Ministry of Finance.
— The cardholder must not engage with the issuing bank to obtain data or make modifications and should solely interact with the government agency.
— If the card is used for purposes other than its intended use, or if it is lost, damaged, or experiences a deficit, the employee holding the card is deemed responsible and the deficit will be deducted from their dues with the government.
— The card balance must be replenished whenever it falls below 75 percent of the total value.
— Government agencies must handle currency differences resulting from the card’s usage.
The new circular also specifies certain restrictions, such as prohibiting cash withdrawals from the cards and the cardholder’s ineligibility for gift and reward programs or any bank privileges.
Additionally, the employee must present purchase or service invoices, provide monthly settlements for the bank account, and submit them to the Ministry of Finance for review.
These measures aim to ensure transparency and accountability in the use of prepaid credit cards by government agencies.
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