| MPs hit government on stock market decline |
| | Sun, 30 Nov 2014 |
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KUWAIT CITY : Several lawmakers blamed the government for not doing enough to prevent the decline of the Kuwait Stock Exchange (KSE) index, stressing the need to quickly pump money to rescue the stock market and traders. MP Abdullah Al-Mayouf holds the government responsible for what he considers the collapse of KSE; alleging the government merely stands and watches the suffering of traders in the stock market, real estate and investments. He said the government keeps on talking about development and the transformation of Kuwait into a financial center, yet it remains silent over the losses incurred by citizens in the stock market. He called for a special session to discuss the economic situation, particularly the current condition of the stock market. He added the lawmakers will not stand idle over what is happening in the bourse.
On the other hand, MP Mohammad Al-Jabri called for the immediate intervention of the government by pumping capital into the stock market in order to protect the small investors. He argued the Capital Markets Authority (CMA) Bill was supposed to be approved in the last session, but the government requested for two months postponement to address certain flaws and the Parliament agreed as a sign of its willingness to cooperate with the executive authority. He asserted, “We cannot tolerate the collapse of the stock market as it could cause serious damage to small investors.” MP Yusuf Al-Zalzalah said the stock market index decline was an expected blunder due to the government’s failure to nip the problem in the bud.
He pointed out numerous individuals and companies have withdrawn their investments in the market as a result of poor management and weak policies. He added other GCC governments are closely monitoring their markets and they intervene at the slightest indication of error, but this is not the case in Kuwait. He disclosed there is a plan to submit a request on Tuesday to allocate two hours of the session for deliberations on the stock market issue. When asked if the issue will affect the opinion of some MPs on the interpellation of the commerce and industry minister, Al- Zalzalah said, “Fire is directed towards the government as a whole, not the minister alone. The government will face the repercussions if it does not address the problem.”
MP Abdul-Rahman Al-Jeeran argued the existing CMA Law lacks legal, administrative and accountability stipulations. He explained the authority’s function is not just about enacting a law or legislation as it also entails recognizing the importance of well-organized business operations under its jurisdiction. He described the current situation in the bourse as anarchy because it does not bode well on the future of Kuwait’s commercial, economic and financial sectors.
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