Kuwait is moving towards a unified mechanism to prevent companies and commercial entities facing security restrictions or observations linked to fraud and other criminal acts affecting integrity from securing government tenders, practices or contracts where the concerns could disrupt public services or threaten state funds.
The government directive follows discussions among relevant authorities and establishes the principle that entities posing such risks should not be allowed to enter into government contracts. Officials have been tasked with developing clear procedures to ensure the approach is applied consistently across government bodies.
The Ministry of Commerce and Industry will coordinate with the ministries of Interior and Finance, the Fatwa and Legislation Department, Kuwait Municipality, the Central Agency for Public Tenders and the Public Authority for Manpower to develop the proposed controls. The aim is to establish a unified framework for identifying affected companies, verifying their status before contract awards and preventing differences in implementation between government agencies.
The proposed mechanism will address the nature of security observations that warrant exclusion, the circumstances under which restrictions apply and whether they should cover only the company concerned or extend to its partners, managers, board members, beneficial owners and authorised signatories. This is intended to address concerns that penalised entities could establish new companies under different names to circumvent restrictions on government contracting.
The study will also determine the duration of exclusions, the conditions for lifting restrictions when their underlying causes have been resolved, and the procedures for notifying government agencies of changes in a company’s status. It will identify the authority responsible for maintaining and updating the relevant list, verifying restrictions and ensuring that decisions are applied consistently.
Legal safeguards will also be considered to protect public funds while ensuring clear and transparent procedures for the companies concerned. The relevant authorities are expected to submit their recommendations to the Cabinet for consideration, with the government emphasising the need for firm implementation and effective coordination to prevent restricted companies from participating in new tenders before receiving clearance from the competent authorities.