Mumtalakat’s direct contributions to state budget to reach BD200 million in 2024

TDT | Manama                                                        

The Daily Tribune – www.newsofbahrain.com

Mumtalakat has revealed that its direct contribution to the state’s general budget will reach BD200 million over an eight-year period, from 2017 until the end of the upcoming year 2024.

The Kingdom’s sovereign wealth fund stated that it has injected BD40 million into the current year’s budget for 2022, and it will also allocate BD40 million for the budget of the following year.

At the same time, Mumtalakat affirmed its policy of self-sufficiency in managing its operations, as it does not burden the government with any financial obligations nor does it receive direct support from the state

In fact, the company contributes a portion of its profits to the public account. In a memorandum to the Council of Representatives, Mumtalakat clarified that it publishes audited financial statements on its website in line with best governance practices. Those interested in knowing the company’s financial standing can access its financial data, which is made available to the public.

The company emphasised its commitment to safeguarding state funds, enhancing transparency, and enabling various oversight bodies to monitor its financial transactions.

The Council of Representatives and the National Audit Office were mentioned as among the key entities responsible for auditing the company’s data.

Adherence

Mumtalakat highlighted its adherence to the provisions of the Companies Management and Governance Charter, issued by the Ministry of Industry and Commerce.

Regarding the transfer of its profits to the state’s general budget, the company stated that the proportion of net profits transferred to the budget is determined by a decision from the shareholder, represented by the government.

This determination takes into account the alignment with the Council of Representatives through discussions on the state’s general budget, considering the company’s economic conditions and surrounding circumstances.

It also considers the company’s need for cash liquidity to implement its future plans and investment strategy during the two subsequent financial years following the budget project.

The company added: “The reconciliation between the government’s needs and the company’s requirements is taken into consideration, which in some years has led to the company’s contribution to the general budget despite its negative results.

"As a result, Mumtalakat is committed to contributing to the general budget annually during the past six years, the current year, and the upcoming year.”