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Several MPs criticize KD 2 billion grant offered by govt to revive KAC
December 24, 2014, 8:38 am

Several lawmakers criticized the financial support of KD2 billion offered by the government to revive the ‘hopeless’ Kuwait Airways Corporation (KAC), reports Al-Rai daily. They stressed that the action contradicts the policy of controlling public expenditures which the government recently announced to deal with the current dwindling prices of crude oil in the international market.MP Dr Abdullah Al-Turaiji said he was surprised when he heard that the government granted KD2 billion to Kuwait Airways Corporation before implementing the privatization law.

He denounced the decision, which was taken at a time when the government is calling for reducing public expenditures, insisting that government should not fall for flattery at the expense of public funds.

On the other hand, MP Abdulhameed Dashti explained that several bills have been enacted for privatization of KAC, which gives it the right for necessary restructuring through the Public Investment Authority.

He said KAC can use the money for settling debts, purchasing airplanes and maintaining its status as the national carrier.

MP Dashti added that the government spending KD2 billion on KAC while at the same time it is agitating for conservation of funds amounts to contradiction.

In addition, MP Nabil Al-Fadhel asserted that it is not too much to pump money into reviving the airline or demand for KD2 billion loan. He indicated that the objective for privatizing the airline is to cut down expenditures and put an end to losses.

He stressed that the actions taken by KAC Board completely contradicts the idea of privatization, asking, “Who will buy the airline or embark on the privatization after pumping such a huge amount in acquisition of airplanes?”

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