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MPs ask for transfer of LCs from finance ministry

Author : Moses Legge | Published: Wednesday, June 10, 2015

The national assembly has asked the government to transfer the management of Letters of Credit from the Ministry of Finance to the Central Bank.

MPs say some government officials may have conspired with some institutions to abuse the credit line.

The government introduced the Letters of Credit in 2012 after the shutdown of oil production.

Under the arrangement, the Qatari National Bank issues credit lines to businessmen to buy essential goods and receives payment from the Central Bank after three months.

Several government institutions, including Nilepet and the Ministry of Finance, managed the Letters of Credit.

Last month, the national parliament mandated the committee of Finance and Economy to investigate possible mismanagement of the credit line.

In a report today, the committee says some business companies were issued LCs but they did not import any goods.

MPs say those responsible for abusing the credit lines should be punished.

“If there is a way of punishing them, they have to be punished. They have to be punished because this one belongs to the public,” Permena Awerial, Awerial County Representative.

The opposition in parliament says some government officials concerned with the LCs neglected their duties.

“I think this house should be serious about it because when you look at it, it is really a network between some people in the government and the companies concerned,” said Onyoti Adigo, Leader of Minority.

The MPs resolved that the LCs should not be managed by the Ministry of Finance. They recommended that it should be a responsibility of the Central Bank.

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