Legal Disclaimer: This text is published for reference and convenience only. While due care has been taken in reproducing and reviewing it, we accept no liability for any error, omission or inaccuracy that may occur during its transcription or formatting, and it may not reflect subsequent amendments. In all cases, the official text published in the Official Gazette "Kuwait Al-Youm" shall prevail.
Furthermore, this English version is an unofficial translation. We make no representation or warranty as to its accuracy and accept no liability arising from any reliance on it. In the event of any discrepancy or difference in interpretation between the English and Arabic texts, the Arabic text shall prevail.
Law No. 25 of 1996
on the Disclosure of Commissions Offered
in Contracts Concluded by the State
Article 1
The provisions of this Law shall apply to the following entities:
1 – Government entities, including the ministries and public departments of which the administrative apparatus of the State is composed.
2 – Kuwait Municipality.
3 – Public authorities and public institutions.
4 – Wholly State-owned companies, or companies in whose capital the State or any other public juristic person holds a share of not less than fifty per cent.
Article 2
All supply, purchase, concession and public works contracts, including deals for weapons and military materials of all kinds, and any other contract of whatever kind, concluded by the entities referred to in the preceding Article, whatever their type or method of conclusion, and whose value is not less than one hundred thousand dinars, whether concluded through international or local tender, through Practice (negotiated procurement) or through direct award, shall include an express provision stating whether or not the party contracting with any of those entities has paid or will pay, or has provided or will provide, a commission in cash or in kind, or a benefit of any kind whatsoever, to an intermediary, whether disclosed or undisclosed in the contract. Where the payment thereof is provided for, the said party shall have an accredited agent having an actual domicile or an elected domicile in Kuwait, and the contract shall disclose the full name of the intermediary, his capacity, his profession or post, his domicile and his place of work, whether himself or whoever represents him, and in particular shall specify the amount or percentage of the commission, its type, the person to whom it was paid or will be paid, and the place of its payment.
Article 3
Every person who pays or provides, and every person who receives in any capacity, a commission, gift, donation, grant or the like under any name, even if incidental, such as a consideration for consultancy, administrative expenses, or services of any kind that achieve a material or moral benefit, or who promises or receives a promise of any of the foregoing, on the occasion of the conclusion of a contract provided for in the preceding Article or during its performance, shall submit, within the thirty days following the payment, receipt or promise, to the contracting entity, a detailed written declaration of the amount of the commission, the type of currency, and the place and instrument of its payment. Such entity shall notify the State Audit Bureau thereof immediately upon submission of the declaration, accompanied by a copy thereof.
The provision of the preceding paragraph shall apply to contracts concluded before the date on which this Law comes into force and which are still in effect, whether or not their performance has begun, and the time limit for submitting the declaration in respect thereof shall be the thirty days following that date.
Article 4
Any person who fails to submit the declaration provided for in Article (3) within the time limit specified therefor shall be punished by a fine equal to the value of the commission or benefit that is the subject of the offence, in addition to being obliged to return the equivalent of its value to the State.
Article 5
Any person who has submitted or submits a statement that does not conform to the facts, or conceals a fact relating to what is prescribed in Article (3) of this Law, shall be punished by imprisonment for a term not exceeding three years and a fine equal to the value of the commission or benefit that is the subject of the offence, or by either of these two penalties, in addition to being obliged to return the value of the commission or benefit that is the subject of the offence.
Article 6
The Public Prosecution shall have the authority of investigation, disposition and prosecution in respect of the offences provided for in this Law.
Article 7
The Ministers, each within his competence, shall implement this Law.
Issued on 11 August 1996 and published in the Official Gazette Kuwait Al-Youm on 18 August 1996.