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Kuwait Country Profile

Frontpage » Country Profiles » Middle East & North Africa » Kuwait » Corruption Levels » Licences, Infrastructure and Public Utilities

Licences, Infrastructure and Public Utilities

Individual Corruption

According to Transparency International's Global Corruption Barometer 2009, Kuwaiti citizens perceive public officials to be the most affected by corruption. Furthermore, a small percentage of households reported to have paid a bribe in order to obtain medical and other utility services in 2008, while more than one out of ten reported to have paid a bribe to obtain registry and permit services.

Political Corruption

According to Global Integrity 2008, nepotism and cronyism plague the civil service, especially in the promotion to high positions. Political interference also makes it difficult to hold public officials accountable for their actions and some are promoted regardless of their performance if they are associated with powerful political, family or tribal groups.

According to Transparency International’s Global Corruption Report 2009, between 1989 and 2001, the Swiss sports marketing company, International Sports, Media and Marketing (ISMM) is reported to have paid approximately USD 166 million in bribes to different international sports organizations and sports officials in order to gain broadcasting rights. Among other suspects, the former secretary general of the Olympic Council of Asia, Abdul Muttaleb of Kuwait is reported to have gained USD 6 million.

In January 2008, the Kuwaiti Parliament decided to sell Kuwait Airways’ shares because it has been running with a deficit since 1990. According to a 2010 news article by Bloomberg Business Week, amid the public share sale, a committee has been set up to probe corruption allegations and financial and management irregularities at Kuwait Airways. Arabian Aerospace in 2010 reports that the Parliament refused a motion to suspend the privatisation despite that the opposition MPs requested it until the Audit Bureau had reported its findings.

Frequency

The World Bank & IFC: Doing Business 2011:
- In order to obtain a construction permit, a company must go through 25 procedures and spend 104 days at a cost of approximately 173% of income per capita.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give government administrative requirements (permits, regulations, reporting) in Kuwait a score of 2.7 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

Transparency International: Global Corruption Barometer 2009:
- Citizens give the public officials a score of 3.4 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

- 12% of the households who had contact with registry and permit services in 2008 report to have paid a bribe.

- 4% of households who had contact with the utilities services in 2008 report to having paid a bribe.

- 4% of households who had contact with medical services in 2008 report to have paid a bribe.