‘insufficient Funds For Kasco To Provide Financial Benefits’

The Chairman of the Board of Directors of Kuwait Airways Corporation (KAC) Ali Muhammad Al-Dukhan revealed that the number of retired employees of the Kuwait Aviation Services Company (KASCO) entitled for the financial benefits established under Law No. 68/2020 is 241, reports Al-Anba daily. He indicated that the total value of the company is KD 7.1 million and the current budget of the company does not include the value of the disbursement of these benefits, as there is insufficient liquidity to implement the law.

Al-Dukhan said this as part of the response sent by Minister of Finance Khalifa Hamadeh to the parliamentary question of MP Saleh Diab Al-Mutairi regarding the non-disbursement of financial benefits stipulated in Law No. 68/2020 for employees of companies affiliated to KAC to convert them into a public shareholding company. He went on to say, “The main activity of KASCO is preparing meals and supplying them to airplanes.

As a result of the measures taken by the government to limit the spread of the COVID-19 virus, air traffic at Kuwait International Airport was suspended partially or completely from March 7, 2020 to date.

The services provided by KASCO are witnessing weak demand in general, and the company’s operations have reduced to less than eight percent of the volume of its previous business. KASCO suffers from physical financial losses as a result of this, hence making this Kuwaiti company unable to implement the aforementioned law except by obtaining the necessary sums from the state treasury.

Due to the lack of sufficient liquidity to implement the law, the Kuwait Investment Authority was addressed to provide support and the necessary funds to implement Law No. 28/2020, similar to what happened with the application of Law No. 6/2008 for the Ministry of Finance to manage the amounts necessary to implement the law. The new thing is in a way that preserves the interests of KAC as the owner of KASCO. The Kuwait Investment Authority’s response was that the matter requires KASCO to arrange the amounts related to the implementation of Law No. 68/2020 as it falls within the company’s competencies and any net financial support will be through its general assembly”.

 

SOURCE  ARABTIMES

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