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‘Commerce’ adjusts method of calculating proportion of fees

March 7, 2019

For flour mills co to provide ration goods

KUWAIT CITY, March 6: The Ministry of Commerce and Industry (MCI) has adjusted the method of calculating the proportion of administrative, technical and storage fees obtained by the company Kuwait Flour Mills and Bakeries Company to provide ration goods, reports Al-Rai daily quoting reliable sources. The sources pointed out that the calculation of the percentage of fees will be from now on based on the value of support provided by the ministry, not the total annual amount of the goods provided as was the case earlier.

The sources also pointed out that the Ministry calculated on the basis of the two amounts of food provided in the annual budget, which means accounting that it was paying 7 percent of the value of the budget of food supply annually, and 5 percent of the budget of construction supplies, which accounted to waste of public money in favor of the merchant, not the state.
Sources said, the supply system in Kuwait includes more than 230,000 ration cards benefitting 2.055 million people, while the size of the budget provided for last year was about 238.1 million dinars. The sources explained the ministry in the past was paying the proportion of the total of these amounts.
The sources explained that the ministry has succeeded in this step in dealing with repeated observation of the debts of accounting, after agreeing with the Council of Ministers to calculate the proportion of administrative, technical and storage fees in the new way.

The Audit Bureau has recorded a violation of the ministry more than once, because of the mechanism of calculating the proportion of the fee obtained by the company from the ministry in exchange for the food supply to the beneficiaries, by 7 percent of the prices of basic food ration goods, and 5 percent of prices of construction materials.

The sources pointed out that the Ministry has shown a wide understanding during the last period of the audit accounting perspective, which was reviewed in this regard, where there was consensus on the importance of addressing this violation by the Ministry, noting that it was communicated with the Council of Ministers and the Kuwaiti Catering Company to reach an agreement to change the mechanism of calculating the proportion of fees.

arabtimesonline