Government endorses rigorous modifications to the Public Finances Safeguard Legislation
Kuwait Modernizes Laws to Enhance Public Funds Protection
The Government of Kuwait has taken significant strides to modernize its legal framework, with the Cabinet approving a draft decree-law to amend Law No. 1 of 1993 on the protection of public funds. These amendments aim to close legal loopholes, modernize procedures, and expand the scope of criminalization.
The key reforms include a unified definition of "public employee," standardizing who is covered under the law. This definition will bring clarity and consistency to the application of the law.
Another significant change is the mandate of a 30-day deadline for the Audit Bureau to respond to requests via electronic means. This streamlining and digitization of procedural responses are expected to improve efficiency and transparency.
The amendments also expand penalties for abuses such as misuse of position and confidentiality breaches. These penalties now extend up to 10 years post-service, deterring ongoing misconduct after leaving public office.
Stricter rules on contracts, tenders, and fraud in government projects are part of the amendments. These rules target corruption and violations in public procurement and development initiatives, aiming to strengthen the integrity of Kuwait's public finance management.
New provisions establish criminal liability for legal entities, expanding accountability beyond individuals to organizations involved in misusing public funds. This move is expected to deter corporate misconduct and ensure that entities adhere to the rules governing public funds.
The amendments also raise fines for submitting false information to the Public Prosecution, increasing penalties up to KD 10,000. This change is intended to deter misinformation and fraud related to public finance protection.
In addition to these reforms, the Government is also focusing on digital transformation. This transformation includes an overall digitalization of legal procedures, supporting fully electronic filing, case management, and potentially remote court sessions. These changes aim to accelerate litigation and strengthen judicial efficiency in protecting public resources.
The recent amendments address gaps identified in the application of previous laws and align Kuwait’s protections with contemporary governance standards.
Meanwhile, the Acting Prime Minister and Minister of Interior, Sheikh Fahad Al-Yousef, chaired a Cabinet meeting where the amendments were approved. The Al-Zour North Power and Water Plant agreement, involving ACWA Power and the Gulf Investment Corporation, was also signed during this meeting.
The Al-Sabriya Residential City project, set to deliver 55,000 housing units with full services over 80 sq. km in northern Kuwait, is another initiative underway.
These developments highlight Kuwait's commitment to modernizing its legal framework and strengthening its public finance management, ensuring transparency, accountability, and efficiency in its governance.
The Government of Kuwait is focusing on digital transformation in its legal procedures, which includes introducing fully electronic filing, case management, and potentially remote court sessions in an effort to accelerate litigation and strengthen judicial efficiency in protecting public resources.
In the realm of finance and technology, the amendments also establish criminal liability for legal entities, expanding accountability beyond individuals to organizations involved in misusing public funds, aiming to deter corporate misconduct and ensure entities adhere to the rules governing public funds.
