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Kuwait: Initial Probe Reveals 70,000 Workers In Unregistered Firms

Image Source: http://kuwaitinfoalerts.com

Initial Probe Reveals 70,000 Workers In Unregistered Firms
Source:  arabtimesonline.com

PASS Reviews ‘Files’ Over Bogus Recruitment

KUWAIT CITY, July 25: Some 28,000 companies have yet to register under the automation system and the Ministry of Social Affairs and Labor is currently searching for the expatriate personnel working in those companies, reports Al-Qabas daily.

The daily quoting Assistant Undersecretary for Labor Affairs Jamal Al-Dousari said preliminary investigations have revealed that workers in those unregistered companies are about 70,000 but in actual fact, the number is relatively low.

He said officials of the ministry will cooperate with their counterparts from the Ministries of Interior and Commerce to issue relevant report if the search is concluded.

He explained the team has been analyzing the system and studying the files of unregistered companies at the concerned ministries to help officials determine the validity of companies’ licenses. He reaffirmed the team would be able to complete the final report within one month.

Meanwhile, the Public Authority for Social Security (PASS) is currently reviewing files of some private companies due to suspicions on bogus recruitments to benefit from the Employment Support Act, reports Al-Rai daily quoting sources.

Sources said the authority will ask the companies to return the money they obtained through the Act in case proven that they have violated the law.  Sources disclosed PASS closely coordinates with the Government Manpower Restructuring Program (GMRP) to uncover the anomalous activities of private companies, particularly the fake recruitment process.

According to the sources, the mechanism for monitoring violations has been implemented since 2011.  They said over one million Kuwaiti dinars have so far been recovered from the erring companies but it seems the anomalous procedures still continue; hence, the need for more stringent measures to eliminate this negative phenomenon.

Meanwhile, Assistant Secretary General of GMRP Fawzi Al-Sharida revealed a joint committee, consisting of members from the GMRP, PASS and State Audit Bureau, has been formed to follow up the issue.  He explained Kuwait spent around KD400 million for labor support after the approval of pay raise schemes.  He emphasized the need for a thorough review of the files of employees in some companies to verify the alleged violations, considering the huge expenditures on labor support.