VZCZCXRO5784
RR RUEHDE RUEHDH RUEHDIR
DE RUEHMK #0424 1941255
ZNR UUUUU ZZH
R 131255Z JUL 09
FM AMEMBASSY MANAMA
TO RUEHC/SECSTATE WASHDC 8807
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RHBVAKS/COMUSNAVCENT
RHMFIUU/HQ USCENTCOM MACDILL AFB FL

UNCLAS MANAMA 000424 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR NEA, EEB, AND DRL 
 
E.O. 12958: N/A 
TAGS: PGOV ECON BA
SUBJECT: FORMER GOB OFFICIAL CONVICTED OF CORRUPTION 
 
¶1. (U) On July 6, the High Criminal Court found Issa Al 
Thawadi, former CEO of the quasi-governmental Housing Bank, 
guilty of embezzling 1.5 million BD ($4 million) between 1998 
and 2002.  The court sentenced Thawadi to 10 years' 
imprisonment, imposed a 34,000 BD ($90,100) fine, and ordered 
him to compensate the bank 621,000 BD ($1,645,650).  The 
court also convicted the former CFO, a British national, 
levied the same fines, and sentenced him to five years' 
imprisonment followed by deportation.  The bank's Bahraini 
chief auditor was cleared of all charges. 
 
¶2. (U) Thawadi served as the CEO of the Housing Bank under 
both late Emir Isa and King Hamad.  Then-Minister of Housing 
Fahmi Al Jowder brought the case against him 2004, shortly 
after the office of the Public Prosecutor was established. 
 
¶3. (SBU) Comment: While it took five years for this complex 
case to make its way through the justice system, it 
represents a success for the King's reform project and 
related anti-corruption efforts.  For the first time, a 
senior official with close ties to the ruling family faced 
corruption charges in court and was convicted.  Since this 
case began three other high-profile corruption cases have 
been filed.  Last year, two of them (one against parastatal 
ASRY's senior management, and one against nine Ministry of 
Industry and Commerce employees) saw convictions, while the 
third, involving aluminum producer ALBA, continues to wind 
its way through the courts. 
 
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Visit Embassy Manama's Classified Website: 
http://www.state.sgov.gov/p/nea/manama/ 
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ERELI