Approximately $223 Million In Public Funds Are Suspected Of Being Wasted

Kuwait Oil Company was accused of waste of public money following the issuance of a report by the Audit Bureau when it floated engineering and support group contracts for the inspection of wells, a practice deemed an infringement of company funds.

At the time of offering the bids to the companies, the previous head contract work team stripped the contracts of their content, specifically the price items. These additions were not presented to the committees at the time, and were not included in the final bid value.

Management ignored errors and procedures approved in 24 contracts, which leaves no doubt that "this procedure is deliberate and not just a procedural error, costing the public large sums of money about 223.369 million dollars for items not vetted and approved by the committees." "These reckless expenditures drained the contract budgets in large quantities."

The report indicated the additional annexure were not counted among the estimated values ​​of the contracts, as the company admitted in its responses to the Bureau’s inquiries not to specify the quantities and types of all items in the additional annexes, which gave the space for each contractor to set items completely different from the items submitted by the contractors.

The report considered that this procedure reflects the company’s lack of knowledge of its requirements and needs for items that are considered additional at the time of need and necessity for their use, as well as its failure to verify the prices of these items.

As a result of such practices, the Bureau has requested the government take legal action against those who damaged the mechanism for concluding contracts and for disbursing the sums owed to contracting parties.Al-Rai reported that Kuwait Oil Company has formed a committee to investigate the entire issue and is awaiting its results.

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