Date: Sep 10, 2011
Source: The Daily Star
Corruption scandal plunges Kuwait into deep political crisis

FRANCE PRESS

KUWAIT CITY: The wealthy Gulf state of Kuwait appeared headed Thursday for a major political crisis over allegations of corruption involving several members of parliament and former ministers.
Media reported that a number of banks planned to refer as many as 15 MPs, and possibly former ministers, to the public prosecution to investigate “suspicious” huge cash deposits into their accounts.
Citing sources, Al-Rai daily said local banks are likely to refer between 15 and 20 MPs in the 50-member parliament to the public prosecution to probe suspicions of money laundering.


It said a number of former ministers could be involved in the scam.
Late Wednesday, State Minister for Cabinet Affairs Ali al-Rashed denied reports that incumbent ministers were involved in the alleged scandal.
The government has instructed the central bank and the Finance Ministry to “take all necessary legal measures” to deal with the allegations.


The scandal, as opposition MPs describe it, was exposed by Al-Qabas newspaper in an unsourced report two weeks ago that cash funds totaling 25 million dinars ($92 million) had been deposited into the accounts of two MPs.
The report claimed the deposits were linked to domestic political events including grillings before parliament, indicating that the deposits were used to buy the support of the lawmakers in crucial voting.
Kuwaiti political analyst Saleh al-Saeedi expected the corruption charges would plunge the country into yet another political crisis.


“It will certainly lead to a deep political crisis … But I think the government will be able to survive because it has a parliamentary majority, unless major popular protests take place,” Saeedi told AFP.
Independent Shiite MP Hassan Jowhar, however, expected the issue to develop into a major political crisis that will lead to parliament being dissolved and snap polls, which would be the fourth since May 2006.


Youth activists campaigning to oust Prime Minister Sheikh Nasser Mohammad al-Ahmad al-Sabah, a senior member of the ruling family, plan to stage a new rally on Sept. 16 and the corruption charges could energize them.
Kuwaiti opposition MPs demanded the recall of parliament from summer recess for an emergency parliament session on Sept. 22 to review government measures on the allegations, and to debate and pass a number of anti-corruption laws.


Jamaan al-Harbash, a leading Islamist opposition MP, warned of “serious political consequences” if the government were to attempt to foil the emergency session.
“The alternative to preventing the session is going to the street, and this could lead to serious political consequences,” Harbash told reporters.


Thanks to high oil prices, OPEC’s third-largest producer has posted a budget surplus in each of the past 12 years, amassing surpluses of more than $200 billion. Its foreign investments currently top $300 billion, the largest ever.
But corruption has been on the rise. Between 2003 and 2009, the emirate slipped 31 places to 66th position on the Berlin-based Transparency International Corruption Perceptions Index among 178 nations.
In 2010,Kuwait improved 12 places to the 54th position but still came in last among the six-nation energy-rich Gulf Cooperation Council, behind Saudi Arabia.


Opposition MPs have questioned several ministers and the prime minister himself in parliament on corruption allegations, and also filed no-confidence motions against them, but without success.
According to WikiLeaks, a document sent by the U.S. Embassy in Kuwait City in mid-2006 stated that the “rapid rise in oil prices and the accompanying oil boom has fuelled corruption in Kuwait.”


The cable said that between 2003 and 2006, Kuwaiti revenue rose from $25 billion to $47 billion. Last year, state income jumped to a record $79 billion and is forecast to top $100 billion for the first time this fiscal year.
An International Monetary Fund report released early in September spoke of some flaws in Kuwait’s implementation of a 2002 law against money laundering, and combating the financing of terrorism.