Kuwait: MP queries on allocation of 5% co-ops' profits to support govt
28 Sep 2023
Member of Parliament of Kuwait Fayez Al-Jomhour has raised pertinent questions with the Minister of Social Affairs, Family, and Childhood Affairs, Sheikh Fares Al-Sabah, concerning the legal underpinnings of the decision to allocate five percent of cooperative societies' profits to support the government. Al-Jomhour disclosed that this decision, originally issued in 2018, had been rendered by the Court of Appeals as a nullification of a prior similar directive. The court's ruling emphasized that the assets of cooperative societies are regarded as the private property of their shareholders, despite their status as entities subject to government administrative oversight.
MP Al-Jomhour expressed his curiosity regarding why successive Ministers of Social Affairs have seemingly disregarded the aforementioned court verdict. He sought clarification on the purpose behind the imposition of a five-percent deduction and whether it serves the development of specific projects. Additionally, Al-Jomhour questioned the tangible benefits accruing to shareholders resulting from the allocation of five percent of cooperative societies' profits to support the government's initiatives.
