VZCZCXRO6099
PP RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHKU #0989/01 1771330
ZNY CCCCC ZZH
P 261330Z JUN 07
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 9452
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000989 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/ARP, EB/ESC/IEC, ENERGY FOR MWILLIAMSON 
 
E.O. 12958: DECL: 06/26/2017 
TAGS: PGOV EPET KDEM KU NATIONAL ASSEMBLY
SUBJECT: OIL MINISTER TORCHED IN GRILLING; FACES NO 
CONFIDENCE VOTE JULY 9 
 
REF: A. KUWAIT 919 
     ¶B. KUWAIT 882 
     ¶C. KUWAIT 836 
     ¶D. KUWAIT 707 
 
Classified By: Ambassador Richard LeBaron for reason 1.4 (d) 
 
¶1.  (C) Summary and comment: On June 25, ten MPs submitted a 
no confidence motion on the Oil Minister following a 
nine-hour "grilling" by three opposition MPs on 
corruption-related charges.  The motion was supported by MPs 
from all four parliamentary blocs, suggesting it will get the 
25 votes needed to pass when it is voted on July 9.  Most 
expect the Minister to resign in the coming days rather than 
risk being forced out by Parliament.  If he does, this would 
represent a significant victory for opposition 
parliamentarians and a defeat for the Government.  There is 
also the possibility that the entire Cabinet could resign or 
the Amir could dissolve Parliament and call new elections. 
Regardless of the outcome, we see no serious consequences for 
U.S. interests emerging in the short term, particularly 
regarding key foreign, security, and energy policy issues. 
End summary and comment. 
 
¶2.  (SBU) On June 25, ten MPs submitted a no confidence 
motion on Oil Minister Shaykh Ali Al-Jarrah Al-Sabah, a 
distant cousin of the Amir, after he was "grilled" (i.e. 
questioned) by three opposition MPs for nine hours on 
corruption-related charges.  Liberal MP Abdullah Al-Roumi, 
Islamist MP Adel Al-Sarawi, and Populist MP Musallam 
Al-Barrak accused the Minister of using his position to 
protect his cousin, Shaykh Ali Al-Khalifa Al-Sabah, from 
prosecution in a major oil-related embezzlement case (ref B). 
 They also claimed the Minister had not only failed to combat 
corruption in the Oil Ministry, but was himself involved. 
The evidence they provided for their accusations about the 
oil ministry was more sensational than persuasive.  At one 
point the MPs displayed pictures of senior Kuwaiti oil 
officials (though not the minister himself) with Japanese 
women the MPs labeled prostitutes at a party in Tokyo 
allegedly paid for with government funds. 
 
¶3.  (SBU) The Minister denied the allegations and noted that 
many of the violations cited by the MPs had occurred before 
he was appointed.  On his relationship with Shaykh Ali 
Al-Khalifa, he explained that he consulted the former 
minister as part of a routine series of meetings with more 
than 50 senior oil sector officials.  Shaykh Ali Al-Jarrah 
also suggested that several prominent individuals with vested 
interests in key oil projects that he had opposed were behind 
the grilling.  Parliamentarians were apparently unconvinced: 
the no confidence motion was supported by MPs from all four 
parliamentary blocs.  The motion, which only needs 25 votes 
to pass, is expected to be voted on July 9. 
 
¶4.  (C) Reactions to the grilling were mixed.  Most local 
newspapers argued that the MPs outperformed Shaykh Ali 
Al-Jarrah and their accusations against the Minister were 
generally convincing.  The new daily Al-Jarida, owned by 
prominent liberal MP Mohammed Al-Sager, whose bloc supported 
the grilling, reported that "the key winner in yesterday's 
grilling was Kuwait and its democratic march."  The head 
staffer for liberal MP Mishari Al-Anjari told PolOff June 26 
that the evidence presented was good, but "not enough" to 
oust the Minister.  He believed the grillers had stronger, 
more damning evidence against the Minister, but had chosen to 
withhold it due to the potential political repercussions that 
could result if they revealed it in Parliament.  He suggested 
they had shared this information with MPs, which was why so 
many had expressed support for the no confidence motion. 
 
Few Good Options for the Government 
----------------------------------- 
 
¶5.  (C) The no confidence motion comes as a blow to the 
Government and threatens to fuel political tensions.  This is 
the second grilling against a minister from the ruling family 
that opposition MPs have mounted since winning a 
parliamentary majority in last summer's elections; another 
grilling in December was avoided at the last minute by the 
minister's resignation.  It is unclear how the Government 
will handle this latest challenge.  It is unlikely the 
Government will risk a close vote on the no confidence 
motion, particularly since no minister has ever been ousted 
this way in Kuwait's 45 years of parliamentary democracy.  If 
either the Minister or Cabinet resigns, it would represent a 
major victory for opposition MPs and a serious blow to the 
Government's prestige, and could merely encourage additional 
grillings.  In the latter case, many believe Shaykh Nasser 
 
KUWAIT 00000989  002 OF 002 
 
 
Mohammed would not be re-appointed as Prime Minister.  A 
final option is dissolving Parliament and calling new 
elections.  Most contacts argue that this would be very 
difficult in the current political environment, and would be 
interpreted as an attempt by the Amir to protect senior 
ruling family members from investigation and prosecution on 
corruption-related charges.  Nonetheless the "summer 
elections" option was recently predicted by an influential 
member of the Al-Sabah family. 
 
No Short-term Impact; Long-term Projects Could Suffer 
--------------------------------------------- -------- 
 
¶6.  (C) Since the Oil Minister plays no direct role in the 
day-to-day operations of Kuwait's oil sector, there should be 
no short-term effect on Kuwait's production or exports of 
crude oil and refined products, which are managed by 
state-owned Kuwait Petroleum Corporation.  However, a change 
in leadership at the Oil Ministry could further delay 
important projects designed to enhance Kuwait's production of 
heavy crude oil, gas, and "clean fuel."  Increased scrutiny 
of the oil sector and public perceptions of corruption could 
also make decision-makers more risk averse.  Plans to invite 
international oil companies to participate in Kuwait's oil 
sector through enhanced service agreements or the proposed 
8.5 billion USD Kuwait Project could suffer further delays as 
a result. 
 
********************************************* * 
For more reporting from Embassy Kuwait, visit: 
http://www.state.sgov.gov/p/nea/kuwait/?cable s 
 
Visit Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
********************************************* * 
 
LeBaron