(MENAFN - Arab Times) Joint scrap company eyed
KUWAIT CITY, May 27: Director General of Kuwait Municipality Eng Ahmad Al- Manfouhi has confirmed coordination with the Ministry of Justice to block the transactions of those proven to have violated construction regulations in the Municipality and some governmental institutions starting from July 1, reports Al-Anba daily.
Speaking to the daily, Al- Manfouhi revealed the Municipality removed 40 construction violations according to the final rulings. He pointed out that the coordinated efforts of the Municipality, Public Prosecution and Interior Ministry is considered a model of cooperation among ministries and other State institutions. He added the Municipality recorded unprecedented revenues after the issuance of final rulings on a number of cases.
Meanwhile, a scrap company owned by the government and private sector will most likely be established through an alliance consisting of a group of investors — about 80 Kuwaiti companies specialized in scrap operations — with a capital of KD100 million ($330 million), reports Al- Anba daily quoting governmental sources.
Sources said several Kuwaiti companies submitted a request for the establishment of such a company as they incurred huge losses – about 70 percent of their capital – after the transfer of the scrap market to Al-Naeem. Talking about the shares of the government and private companies as per the Kuwaiti law, sources explained the government will establish joint stock companies and the shares will be distributed as follows: 24 percent for the government and its affiliates, 26 percent for public bidding and 50 percent for public subscription to citizens.