Sep 12 2012
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Huge Losses Seen In Execution Of Construction Projects By Govt
KUWAIT CITY, Sept 12
Several complications and hindrances encountered in the execution of construction projects by the government have led to a loss of KD 6.5 billion, reports Al-Shahed daily quoting reliable sources.
They revealed that the pace of execution of these projects is very slow, indicating that political differences among the authorities and prioritization of personal interests over national interest are the main causes for such disruptions in the construction projects.
They stressed the bureaucracy and differences among the National Assembly members, as well as the ongoing chaos in the political arena has impeded the progress of projects of both the public and private sectors.
Meanwhile, sources warned that the oil reserves of Kuwait will be depleted completely by 2017 if the country continues to waste the public funds in this manner.
They stressed the need for Kuwait to reduce its fiscal deficit so that it will be less than KD 7 billion by 2017 to ensure long-term financial stability.
Meanwhile, the Ministry of Oil has been compelled to deal with a serious crisis created by its former officials, in relation to the Al-Zour Refinery that was approved, cancelled and approved yet again, leading to huge losses to the state treasury -- as indicated by incumbent Minister of Oil Hani Abdulaziz Hussein, reports Al-Dar daily.
There are uncertainties over the refinery establishment contract previously awarded to some Korean companies and later dismissed by the government due to its conflict with the National Assembly and through which the companies in question were paid $200,000,000 in compensation, the daily added.
After a few years, the government came back to revive the project and signed another contract with the same Korean companies. The sources now wonder who is behind the confusion that brought about the wastage of public funds after the government proposed re-establishing the project. Why was there no agreement signed with the company to delay its implementation rather than canceling it, the sources argued?
In a related development, vice-board chairperson of the Union of Workers in the private oil sector Salem Al-Hajri says the union has in its possession many documents on suspicious contracts in the Kuwait Petroleum Corporation (KPC) which they intend to forward to the company's board chairperson, but the latter is refusing to meet the union members and has neglected their demands.
He added the union sent three letters to the board chairperson in June and July but he declined to respond to any of them, an act he considered humiliating to the national personnel working in private oil sector who encounter many problems that need to be addressed immediately.
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