Government endorses stringent alterations to the Public Finances Safeguard Act

Government endorses stringent alterations to the Public Finances Safeguard Act

The Kuwaiti government has announced a series of significant amendments to the Protection of Public Funds Law (Law No. 1/1993) and the Civil and Commercial Procedures Law. These reforms aim to strengthen safeguards against misuse of public resources, accelerate litigations, and promote digital transformation in the justice system.

Key amendments impacting these areas include:

1. Protection of Public Funds:
2. The scope of criminalization is expanded to cover wider misuse, including tightening rules on job exploitation and fraud in government contracts and tenders.
3. Penalties are heightened for corruption, fraudulent acts, and providing false information (with fines up to KD 10,000).
4. Intentional damage to public funds is criminalized even if no personal gain occurs.
5. The law enables Public Prosecution to demand the return of misappropriated funds even if criminal cases are dismissed.
6. Legal entities (companies) may be held criminally liable for offenses involving public funds.
7. A unified definition of “public employee” was introduced.
8. Government officials are barred from sharing confidential information for up to 10 years after leaving office, with penalties for violations.
9. Deadlines for Audit Bureau reporting are extended to 30 days, with electronic submission methods established to modernize procedures.
10. Civil and Commercial Procedures Law:
11. Full electronic filing and case management systems are mandated to support digital court procedures.
12. The possibility of remote court sessions is introduced to enhance accessibility and speed litigation.
13. Stricter controls on judge recusals were implemented, including financial penalties and time limits for decisions on recusal requests.
14. These reforms aim to reduce court backlog, currently exceeding 81,000 appeals at the Court of Cassation, by speeding case reviews and ensuring impartial judgments.
15. Impact on Digital Transformation and Safeguards:
16. The legal reforms explicitly incorporate digital workflows, such as electronic submission of Audit Bureau reports and digital case management, reflecting a broader government digital transformation strategy.
17. Kuwait Oil Company’s opening of an AI Innovation Center highlights parallel infrastructural investments in advanced technology supporting these legal changes.
18. Enhanced legal safeguards and criminal penalties bolster integrity and investor confidence, contributing to a more secure business environment.

These reforms mark a significant step towards modernizing Kuwait's legal and administrative infrastructure, bolstering public trust, and fostering a more efficient and transparent government.

[1] Al-Rai, "Kuwait's Cabinet Approves Amendments to Protection of Public Funds Law," (2022). [2] Al-Qabas, "Cabinet Approves Amendments to Civil and Commercial Procedures Law," (2022). [3] Kuwait News Agency, "Kuwait Oil Company Establishes AI Innovation Center," (2022). [4] Al-Seyassah, "Al-Zour North Power and Water Plant Agreement Signed," (2022). [5] Gulf Business, "Kuwait Unveils Major Reforms to Strengthen Public Fund Protection," (2022).

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