MPs urged to reject 2023 unemployment fund accounts
Parliament's Financial and Economic Affairs Committee has called on MPs to reject the audited 2023 accounts of Bahrain's unemployment insurance fund, with a vote scheduled for today, after net assets fell by BD124 million due to a state transfer and rising benefit costs.
The recommendation follows a four-month review by the committee, which advised against adopting the financial statements approved by the board of the Social Insurance Organisation.
The fund's reserves dropped from BD587.6 million in 2022 to BD463.2 million in 2023.
The fall was driven by a BD200 million government-authorised transfer intended to support employment and wage programmes. BD67.67 million was drawn during the year, with the rest recorded as liabilities to be used later.
The committee warned that if such withdrawals continue without clear legal safeguards, the fund's long-term stability could be placed at risk.
It called for firmer rules to govern transfers and more regular assessments of the fund's ability to meet its obligations. Although the fund closed the year with a surplus as contributions exceeded payouts by BD54.4 million, the committee raised concern over the direction of travel.
Benefit payments rose by nearly 12 per cent while contributions rose by only 8.3 per cent. If that pattern continues, it said, the surplus may not hold.
The audit, conducted by KPMG Fakhro and endorsed by the Social Insurance Organisation's board, found the statements to comply with international standards. Still, the committee said the numbers did not fully reflect longer-term pressures.
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