Corruption has become a staple of governance and a feature of everyday life in Kuwait. The unraveling of multiple major corruption cases in the past few weeks has shaken society to the extent that the 30th anniversary of Iraq’s invasion was overshadowed by discussions of corruption and has become a convenient metaphor for the current state of affairs.
Corruption has amounted to an internal invasion, threatening the fabric of the state and its ability to function. It has reached unparalleled proportions and includes a complex web of users and processes. However, corruption in Kuwait involves more than embezzlement and money laundering. It is a five-tiered system whose components intersect and feed off one another, making it harder to uproot. If state and society are sincere in tackling corruption, they should first address corruption in its totality, or it will fester.
The cornerstone of corruption is wasta, the use of connections and influence to garner favors. It comes in different forms: bribes, nepotism, unwarranted services, waived fees, inflated evaluations, and circumvented laws. It produces a contagious attitude that perpetuates gross negligence, inefficiency, and suboptimal work performance. Executing a mundane task in various quarters more often entails distributing “gifts,” whether monetary or material goods.
So pervasive is wasta in the system that an International Monetary Fund report found that among Gulf populations Kuwaitis mentioned it most often as a prerequisite for getting a job, while among the populations of the Middle East they were the third to do so. Kuwait’s vital oil sector has not escaped cronyism either, nor has the illegal distribution of state farmlands. Much has been written about wasta, but accommodating wasta as ordinary routine has allowed relatively junior deviant practices to snowball into larger cases of corruption.
The second layer of corruption involves exploiting the system to engage in fraud, which complements wasta. A prime example is the scandal of forged advanced degrees secured by officials and academics. Some companies have not escaped this predicament either, presenting distorted balance sheets, while thousands of Kuwaitis fake their employment status in the private sector to receive public funds encouraging people to leave the bloated public sector.
Faking sickness, another dimension of fraud, has also been part of this circle of corruption. The state spent $3.5 billion in the first nine months of 2018 alone on treatment abroad for its citizens, of which several cases were discovered to be tourists masquerading as patients. Many of them ended up in U.S. hospitals where fees totaling $677 million have remained unpaid. This prompted the State Department and Congress to issue statements imploring Kuwait to settle its bills. Disability claims have also been exploited, with individuals pretending to be disabled to benefit from financial incentives.
The first two layers of corruption are often invisible, but they are corruption’s lifeline. Associating corruption with illicit financial gain alone has breathed life into a culture rooted in wasta and fraudulent behavior. So widespread is this culture that many otherwise law-abiding individuals are forced to partake in it or else risk delays and complications. Normalizing or trivializing such practices enables the exponential growth of misconduct.
Falsifying one’s citizenship status and human trafficking are a third tier in Kuwaiti corruption. The poor treatment of the bidun, or stateless inhabitants of Kuwait, has pushed them to pursue illegal methods to satisfy their needs. Examples include posing as members of another community to make ends meet or paying to obtain long-sought documents. Illegal labor trafficking involving hefty sums imposed on foreign laborers has profited members of the ruling family and influential figures described as visa merchants. This has partly led to a population imbalance and increased xenophobia.
Kuwait has also become an international hub for money laundering, a fact picked up by international media. This fourth layer of corruption has galvanized many Kuwaitis given its intrigue and the alleged involvement of a senior member of the ruling family currently under investigation for facilitating money laundering. The case is connected to the 1Malaysian Development Berhad sovereign wealth fund and the involvement of Syrian and Iranian operatives speaks to Kuwait’s international entanglement. Several social media influencers are also being investigated for receiving millions of dollars from suspected money laundering operations, knowingly or unintentionally.
Embezzlement attracts the most attention given the associated persons and sums. But this fifth tier is the tip of the iceberg. Kuwait’s financial integrity has been shattered across myriad institutions and domains. These include social security, the army fund, defense procurement, the “hospitality money” of the Interior Ministry, Kuwait Airways, sports, the Port Authority, municipalities, petrochemicals, oil, parliament, and the list goes on. Adding insult to injury is the fact that legal cases never seem to identify the guilty. Yet it is not for the absence of oversight. Twelve bodies “fight” corruption, but many of them are either toothless or incapable. Combating corruption is hindered by overlapping bodies, insufficient laws, and a lackluster attitude driven by a narrow view of corruption.
Kuwait’s ranking in corruption indices keeps falling year after year. The country must rethink its conception of corruption and the limited tools it has to combat it. Education should be used to teach ethics to youths in the context of an integrated view of corruption. Society and nongovernmental organizations should expose the elaborate infrastructure of corruption in everyday practices. Politicians need to reorient their fight against corruption so that it encompasses all five tiers.
Finally, the government should centralize its efforts under empowered, respected anticorruption czars. A new government is expected in December. Fighting corruption should be its primary goal, based on a revamped holistic understanding, or else the current anticorruption mood might fade away. Corruption in Kuwait represents an existential threat for the country. Failure to address it bodes ill for the country’s reputation, wellbeing, and survival.
Comments(26)
Thank you for writing this thoughtful piece. This is an unfortunate result of decades of mismanagement in a country with so much potential. I hope to hear your thoughts on practical solutions; are any being implemented. I also believe it is important to highlight those that are making a positive difference as often they get to media coverage relative to the corrupt and powerful. There are many unsung heroes in Kuwait. Surely with the right backing and coalition, they can make a positive difference.
Thank you for writing this thoughtful piece. This is an unfortunate result of decades of mismanagement in a country with so much potential. I hope to hear your thoughts on practical solutions; are any being implemented. I also believe it is important to highlight those that are making a positive difference as often they get to media coverage relative to the corrupt and powerful. There are many unsung heroes in Kuwait. Surely with the right backing and coalition, they can make a positive difference.
I absolutely agree. The heroes in Kuwait used to be marginalized. Now very important people have taken action. They understand the economics of the country, and fully realize change must take place. Education should rank within the top 3 slots for immediate implementation. A good example is contagious. It trickles down.
Thanks for your comments. Fully agree with you about the many unsung heroes and the need to focus on solutions. I end the piece with a few recommendations that range from education and legal reform to societal involvement and a holistic approach. Future pieces will look further into these issues. Thanks and all the best.
The past 2 years corruptions is way more than the regularity corruption in the past 28 years. We lost faith in everything . In term of correction the current situation we have to crossover a very dangerous zone we have never been before!
Any type of corruption destroy the society. Corrupts show that they are selfish and do not love the motherland but money
I enjoyed reading the whole article, minor mistakes but mostly correct information! Would be nice to invite educated concerned Kuwaitis into your circle to get different perspectives on things! Maybe even a partnership in the making? Who knows.
Thank you for your feedback on the article. I am Kuwaiti who lives in Kuwait and have consulted with several Kuwaitis and done on the ground research while preparing this piece. I agree with you that local content and expertise is much needed. What do you consider minor mistakes? This is a thoroughly researched piece and all information has been verified and hyperlinked to sources. All the best
In health sector all the machines and accessories over priced.. all are getting a huge commission for signing all these products.. you can check the actual price in online for the same item and compare then you ll understand how much extra they are paying.. wasting our country money
Well written! Now is the pinnacle time for Kuwait government to seriously to “clean house” in order to preserve prosperous Kuwait for future generations to come.
Thank you, Denali! Fully agreed.
Law and Order must prevail. The problem is exacerbated by the lax attitude of management/managers. Moreover, many are not trained nor have the experience to attain the position. Wastah cannot be eradicated entirely; however, it should be earned. If wastah is used, then that person had better set a good example for his/her employees who work under him/her. Educational reforms are crucial for establishing a law abiding society. Children ought to be taught in school that one must work hard in order to succeed. Administrators should concentrate on educating students, instilling high morals and ethics, rather than foster an 'entitlement' mentality. Begin at the KG level, and set a high standard throughout the grade levels. Perhaps, it is necessary to check the ratings of Kuwait universities (AUK, GUST, AUM, etc.) against the world rankings. You will see, many developing countries rank higher than Kuwait. This should have been a clue a long time ago, that without an effective educational system, the government will eventually suffer.
Thanks for your comments. In total agreement on the need for effective educational and legal reform + a better understanding of wasta
Dear Bader Al Saif, Do you think it would be possible for Kuwaiti students studying in the States, be required to intern at an American company within their field of study for a period of one year (minimum)? I have worked under several people who have earned graduate degrees from the States, yet did not have the ability to implement policy and procedures. Training is crucial to all fields of study. Book smarts can only carry someone so far. It simply isn't enough. Reach out to the USA Embassy and make use of their training programs. They bring in professionals to provide training to management. Isn't that the purpose of sending Kuwaitis abroad for an education? Lastly, Kuwait does not need more engineers. This was suggested way back in the 1950's -80's while the GCC was in development. I would suggest a liberal education with emphasis on business management....import/export.... international law and trade.
There are other forms of corruption happening in Kuwait led by individuals lending money to people at a very exorbitant interest fee more than the bank law allows. Many times during salary period you can see a person working with this individual withdrawing money holding cards of several ATM owners getting cash from their salary accounts. I hope you can also look in to this issue and Investigate.
There are countless manifestations of corruption. Thanks for sharing this example. Can you email me please? I would like to learn more about this issue. Bader.alsaif@carnegie-mec.org Thanks
Kuwaitis always feel they are above the law and for the most part they are treated as being above the law. Raids on brothels, underground casinos and distilleries result in pictures being published of every other nationality in the local papers but never a Kuwaiti.
Is there enough momentum in the current anti-corruption public sentiment to a spark grass roots call to action, or will the desire to effect change just fade away? Our economy cannot afford to keep hemorrhaging funds while the corrupt continue to line their coffers. Great article. Looking forward to the author’s next piece.
Thank you, Ali. The momentum has been increasing with the unparalleled dose of corruption cases being disclosed. It happens to be timed around an election season which is good so that it impacts choice of MPs and campaign rhetoric, but the pandemic has limited grassroots efforts at this stage moving it online. If there’s no closure in terms of allocating the real wrong doers and returning the funds, there will be more demands for change.
Well said . We need a Kuwaiti Mahateer to save the country from Corruption and mismanagement in our government
To Dr. Bader Al Saif, WOW! A Masters from Harvard and PhD from Georgetown! I sincerely believe you can make a long-standing positive change in Kuwait. I would think, there are many people who are in your same intellectual camp, whether they have college degrees or not. Kuwait can become the lulu (pearl) of the Middle East. It is very possible. I support you. I imagine thousands more, do so too.
First of all, I disagree with the title of the Article. In my opinion, it misleads a reader at the first glance as he/she would expect to read something related to outsiders directly or indirectly coming into Kuwait or having influence on Kuwait sovereignty. And this is specifically because of your use of the word 'another' in the title. Secondly, most of middle easterners' comprehension of the word 'invasion' is an external interference. And. in my opinion, it is unjust to equate invasion with corruption. Whatever the extent of corruption, you cannot validate it with one day invasion. Finally, the main problem of Kuwait, in my opinion, is not corruption rather it is the non-existance of a stable government since the liberation of Kuwait from Iraqi invasion. This is mainly due to the faked Democracy practices within the Parliament. They have failed all governments on claims that could be true but does not stand to the level to overthrowing of a government on continuous bases. NOW, I believe there is external forces whom are wanting Kuwait to be like this, in the name of Democracy.
Dear Bader , I understand as a Kuwaiti your perspective on corruption but the main facts have been hidden in your article where you quoted that " legal cases never identify the guilty " & " insufficient laws" Just to inform you that many people are in jail as we speak , the likes of Saeed Dashti that has embezzled over 2 billion USD from the Kuwait Port Authority . Other like Ghusoon Al Khaled , Abdullah Al Mishari , Hamad Al Tuwaijri and 30 others have been found guilty and sentenced to over 10 years in Jail for embezzling & money laundering the hospitality budget of the MOI. There are many other cases where the law has taken its path in implementing justice . Considering yourself to be a fellow and beginner in writing articles you seem to have misled the reader in lying about the truth of the situation in Kuwait by smearing the judicial system and insulting the constitution and the laws. That is a very bad start for your writing career and make sure that in the future you only say the truth , only the truth and nothing but the truth .
Dear Talal, indeed a few got caught red handed, but what about the many, many others who didn't? Do you have to embezzle millions, before a crime has taken place?! I believe the point of the original poster is this: Enough means enough. Either change the existing political structure, or live in a lawless, anything goes society. You either have law and order, or you don't. Having a bit here and there is still lawlessness.
Kuwatization Training is crucial, now that a couple of thousand expats have lost their governmental jobs. If competent managers are not in place, and mandatory training sessions are not set up, then Kuwait will eventually revert back to developing world workers, running their government agencies. I would suggest bringing qualified leaders from the States to implement an updated policy and procedures structure which is case specific to every department. Further, I would abandon the Egyptian law institution and concentrate on a combination of Kuwaiti and international law. Keeping in mind, the alleged corruption in Kuwait has continued to flourish under an Egyptian jurisprudence. If strong straegies, such as government/corporate training is not executed nor enforced, then nothing will ever change.
Many thanks Bader for this. While I completely understand why Kuwaitis should write about corruption today, I disagree with you in some respects, not least your general, sweeping statements. Rather than being politicised, combating corruption requires addressing it in technical language. Let's keep it in mind: we should be more 'cautious' when writing about corruption in a venerable specialised institute like Carnegie - to be able to counter corruption effectively, we should first understand why it occurs. It would be my pleasure to cooperate with you Bader for future work.
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