Ministries asked to pay outstanding bills to KAC

Ministries and other public-sector entities that owe Kuwait Airways Corporation (KAC) payments for tickets and other services, had been ordered by the Ministry of Finance to make payments in June.

Having failed to collect payments from some of these entities, the cash-starved national carrier has once again approached the finance ministry and requested immediate help in getting money from the public-sector undertakings.

Finance ministry is now understood to have presented various options to the erring government entities to settle all their debts to KAC within the next fiscal year. The total debts of all these institutions amount to KD152.8 million, of which KD93.7 million had been paid, the outstanding KD59.1 remained to be settled as of the end of the fiscal year 2018-19 on 31 March 2019.

According to calculations provided by KAC, the government entities owed the corporation a total of KD62.8 million as of 31May, 2019. Ministry of Finance has now directed all public sector establishments to expedite their debt payments to KAC in line with rules stipulated by Council of Ministers decision number 958 of 2017, which determined prices of plane tickets and bills of shipment through KAC for government entities.

The finance ministry noted that some ministries may have insufficient funds to pay the outstanding amounts to KAC, in which case they could request the ministry to include the amount needed for settling debts in the draft budget for fiscal 2020/2021.