An MP yesterday questioned the logic behind renting several floors in a luxury hotel for the Social Insurance Organisation (SIO) at a cost of nearly BD470,000 per year during a financial crunch.
Mahmood Al Bahraini said seven floors are being rented at an annual cost of BD468,799 while plans are underway to build new headquarters for the SIO.
Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa appeared at Parliament’s weekly session yesterday and said a special team was appointed to oversee rental agreements and government buildings.
“This team reviews all the current rental agreements for government buildings as well as future agreements to ensure they all fall within the government’s spending rationalisation as well as in line with the quality of the service provided,” he said.
“This contract is current and is within the contracts being reviewed at the moment and our future plans include constructing a new building to provide all the services for visitors at the highest quality.
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“The government is sparing no effort to develop and elevate the government service centres across Bahrain and this is done through reviewing the rental agreements – which includes this agreement.
“I assure you if there is any confusion or doubt the government is firm in its stand in taking all procedures to face this issue – so let’s not enter into fabrications as I assure you the government will take the appropriate judicial action.”
However, Mr Al Bahrani said the explanation given to rent the hotel’s floors – that it would provide easy access for those visiting the SIO by providing all services in one location – was ‘unrealistic’ given that other government authorities had several centres across the governorates.
“In times of a financial deficit and a public debt that is continuously increasing why is the government renting premises at such costs,” he said.
“The deficit is eating through the coffers of the SIO and yet they are living in a five-star hotel.
“When I study a contract that’s worth more than BD400,000 which is more than BD4 million in 10 years, it’s more than enough to create a new building and the old building wasn’t even derelict so I don’t understand the need for this expenditure.”
According to the minister’s written answer the contract will continue until December 2022 for a total space of 8,189.100 metres.
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