Kuwait: Law on the Protection of Public Funds
| Pages | 113-116 |
| DOI | https://doi.org/10.1108/eb025691 |
| Date | 01 February 1995 |
| Published date | 01 February 1995 |
| Author | A.A. Al‐Melhem |
| Subject Matter | Accounting & finance |
Kuwait: Law on the Protection of Public Funds
A. A. Al-Melhem
Journal of Financial Crime — Vol. 3 No. 1 — International
Certain violations against Kuwait Public Funds
(PFs) had occurred during and prior to the inva-
sion of Kuwait, especially abroad, by Kuwaiti and
non-Kuwaiti nationals, when some of the public
servants or such employees, who were authorised
to administrate Kuwaiti companies abroad, had
embezzled public funds, or conspired to obtain
benefit in an illegal manner. Consequently, Kuwait
has lost approximately $6bn.
For the purpose of protecting PFs and punishing
all persons held liable for such violations, the legis-
lator has promulgated Law No. 1/93 on the
protection of public funds (the Law). The said Law
consists of 32 Articles, divided into five chapters,
relating mainly to means of controlling (PFs),
crimes, the relevant punishments, and the protec-
tive custody proceedings.
It is worth noting that the Law hereof is prom-
ulgated to maintain many goals, viz. protection to
PFs by closing loopholes in the relevant legisla-
tion,1 besides preventing any future crimes, by
constantly controlling the investment decision,2 to
extend protection to Kuwaiti funds abroad,3 and to
provide harsh punishments to offenders in order
to overcome such crimes.4
At the outset, the Law has defined in Article 2
the expression of PFs because the pertinent
Kuwaiti legislations were empty of such definition,
and it is vital to state the properties subject to
violation. It appears that the legislator has applied
wide definitions to PFs, in order to extend the
protection. The extent of the definition may be
seen in several areas. First, PFs are not confined
only to properties in possession of State Govern-
ment and public departments, but also comprise
companies or firms in which the authorities men-
Page 113
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