10,000 companies currently under audit

The First Deputy Prime Minister and Minister of Interior, Sheikh Fahad Al-Yousef, revealed that relevant authorities have begun scrutinizing approximately 10,000 companies employing more than five workers, which have failed to pay their employees’ salaries for several months, noting that in some cases the delay has reached four months.

During a meeting yesterday with company owners and their representatives, titled “The Wage Protection System: A Safeguard for the Workforce, a More Compliant Market,” Al-Yousef said: “In the previous meeting, I warned about the dangers of ‘shell companies’ to Kuwaiti citizens and the involvement of some of them in money laundering. Cases of this crime have become numerous and are increasing within the State Security Investigations.”

Al-Yousef added that one Kuwaiti citizen is registered with a salary of 3,000 dinars, yet receives only 180 dinars monthly. He pointed out that “70 million dinars were funneled through three companies, including a restaurant license that employs only one staff member,” stressing that such practices damage Kuwait’s reputation with the Financial Action Task Force (FATF) and other international indicators.

For her part, Rabab Al-Asimi, Director General of the Public Authority for Manpower, stated: “We have suspended 10,000 companies for failing to comply with paying workers’ salaries, and warned that non-compliance with wage payments leads to immediate suspension. The Authority now suspends cases on a monthly basis.”