"Al-Dorra for Labor" Faces Liquidation After 10 Years of Failures

Al-Jarida learned from its sources that the Ministry of Social Affairs has submitted a recommendation to the Council of Ministers requesting the liquidation of “Al-Dorra for Manpower” and the termination of its operations, given the substantial financial losses it has incurred since its establishment in 2016 with no tangible benefit, “as well as the utter failure of the successive boards managing it over these years to meet their obligations or fulfill their promises to provide domestic workers of diverse nationalities and recruit them from several countries at competitive prices.”

As the tenth anniversary of the launch of “Al-Dorra for Manpower” passed without achieving any of its intended objectives, Al-Jarida learned from its sources that the Ministry of Social Affairs submitted a recommendation to the Council of Ministers requesting the company’s liquidation and the end of its existence, amid the heavy financial losses it has suffered since its inception without any benefit, “not to mention the glaring failure of the successive boards managing it over these years to honor their commitments and renege on their promises to provide domestic workers of diverse nationalities, recruit them from multiple countries, and offer competitive prices,” which have become “all noise and no substance.”

According to sources, the aim of the “Social Affairs” ministry’s request is to halt the erosion and evaporation of the company’s capital, while preserving what remains after it has lost more than 50 percent of it, as indicated by its previous annual budgets. This has prompted the Union of Cooperative Societies to formally address the ministry on multiple occasions, requesting an “exit” and relinquishing its stake in the company due to its repeated and glaring failures.

Sources considered the Union, which is supervised by the ministry, to be the biggest loser resulting from the launch of the company, which was “stillborn.” They anticipated that if the Council of Ministers approves the “Social Affairs” ministry’s request, the Union of Cooperative Societies and the Public Authority for Investment may be tasked with initiating the company’s liquidation procedures.

They cited some government reports issued years ago, which confirmed that “the establishment of the state-owned company for recruiting domestic workers was done without an economic feasibility study to determine the extent to which it could create added value for this activity, a fact that has been confirmed over the years by its inability to meet its obligations.”

“Al-Dorra for Manpower” was established in October 2016 with a capital of 3 million dinars, distributed as 60 percent to the Union of Cooperative Societies (amounting to 1.8 million dinars), and 40 percent distributed among the Social Insurance Institution, the Public Authority for Affairs of the Crown, Kuwait Airways or its subsidiaries, and the Public Authority for Investment, each holding 10 percent. The company was set up to recruit and train domestic workers in specialized centers, with a symbolic profit margin and competitive prices. Sources from the “Social Affairs” ministry explained that the company failed to perform the role for which it was established, disappointing the hopes and aspirations of citizens who had welcomed it with optimism. It did not fulfill its promises regarding the provision of domestic workers or the reduction of recruitment costs, in addition to the weakness of its external contracts and its failure to expand the circle of sending countries for these workers or to find new markets alongside existing ones.