Identifier
Created
Classification
Origin
04MANAMA615
2004-04-28 16:15:00
CONFIDENTIAL
Embassy Manama
Cable title:  

PARLIAMENT STANDS FIRM - GOB FAILS TO STOP

Tags:  PGOV PHUM BA 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 000615 

SIPDIS

DEPARTMENT FOR NEA/ARP AND DRL/PHD,
DEPARTMENT PASS TO USTR: CNOVELLI AND JBUNTIN
CAIRO FOR STEVE BONDY
LONDON FOR ETHAN GOLDRICH

E.O. 12958: DECL: 04/27/2029
TAGS: PGOV PHUM BA
SUBJECT: PARLIAMENT STANDS FIRM - GOB FAILS TO STOP
QUESTIONING OF MINISTERS

REF: A. MANAMA 200


B. MANAMA 138

Classified By: Charge d'Affaires Robert S. Ford for reasons
1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 000615

SIPDIS

DEPARTMENT FOR NEA/ARP AND DRL/PHD,
DEPARTMENT PASS TO USTR: CNOVELLI AND JBUNTIN
CAIRO FOR STEVE BONDY
LONDON FOR ETHAN GOLDRICH

E.O. 12958: DECL: 04/27/2029
TAGS: PGOV PHUM BA
SUBJECT: PARLIAMENT STANDS FIRM - GOB FAILS TO STOP
QUESTIONING OF MINISTERS

REF: A. MANAMA 200


B. MANAMA 138

Classified By: Charge d'Affaires Robert S. Ford for reasons
1.4 (b) and (d).


1. (C) SUMMARY. Our key FTA negotiator, Minister of Finance
and National Economy Abdulla Saif, appears likely to survive
a parliamentary effort to unseat him. The GOB failed in its
last minute attempts to cancel the parliamentary questioning
of Finance Minister Abdulla Saif, but managed to rescue
Minister of State Abd al-Nabi al-Shoala from questioning in
relation to the pension funds scandal (refs a and b). Many
parliamentarians believe that Saif has allegedly bought off
enough MPs to prevent his removal from office. The
investigation and questioning has raised the parliament's
credibility with the public and may induce a cabinet
reshuffle. The rumors of MP vote-buying are troubling as is
the emergence of Sunni extremist Shaikh Adel al-Moawda as the
parliament's most influential member. END SUMMARY.

-------------- ---
PRIME MINISTER REQUESTS TO BLOCK THE QUESTIONING
-------------- ---


2. (C) On April 10, the Prime Minister sent a letter to the
Council of Representatives(COR) requesting that the COR honor
its promise not to question the ministers if the government
implemented the recommendations of the ad-hoc committee,s
report. In his letter, the Prime Minister promised that
"loans" from the Pension Fund Commission (PFC) and the
General Organization for Social Insurance (GOSI) would be
paid immediately with interest. The next day the Arabic
newspaper &Akhbar Al Khaleej8 published that the GOB will
give BD8.6 million (USD22.8 million) to the PCF and BD7.6
million (USD20.2 million) to GOSI. The GOB also amended the
1975 and 1976 social security laws issued by Decree number
(24),restructuring the administration of both GOSI and the
PFC, and appointing a consultative company to prepare an
actuary study on the possibility of merging both funds.
(COMMENT: The constitution requires passage by the National
Assembly of all laws; perhaps the newspaper, which often gets
things wrong, meant that the amendments will be sent to the

legislature for approval. END COMMENT)

--------------
OTHERS JOIN FIGHT TO BAR QUESTIONING
--------------


3. (C) On April 19 the Minister of Shura and Representative
Council Affairs Abdul Aziz Al-Fadhel followed up the Prime
Minister's lead by contesting the legality of the
parliamentary motion to question the three ministers in a
letter to the COR Chairman. Al-Fadhel argued that the
questioning includes accountability for actions taken by the
ministers before the existence of the COR, and therefore the
actions cannot be challenged according to Article (45) of
Decree for law number (15) for the year 2002. Al-Fadhel also
referenced Article (146) of the Council,s bylaws that
prohibits MPs to ask questions on topics previously discussed
during the investigation. The Parliament conceded these
constitutional points related to Minister of State and former
Minister of Labor and Social Affairs Abd al-Nabi al-Shoala,
so they canceled his questioning.


4. (U) The Government's communications emboldened COR
Speaker Khalifa Al-Dhaharani to join the effort to block the
questioning. In a full session of the COR, al-Dhaharani
introduced two motions to stop the process. Contrary to
expectations in local press reports that the government's
last minute effort would divide the Parliamentary alliance,
COR blocs and independent MPs expressed solidarity, easily
defeating Al-Dhaharani,s motions. After the votes, MP Hamad
Al-Muhannadi (a Salafi member of the Al Asala Islamic
Society) insisted that replenishing the retirement funds'
money was insufficient; the people responsible needed to be
punished.

--------------
SAIF APPEARS SAFE FOR NOW
--------------


5. (C) The COR's Services Committee questioned Saif for five
hours on April 20 and 21. MPs differed on their assessment of
the Minister,s responses in the two-day session, casting a
shadow on whether the COR would proceed to a vote of
no-confidence. MP Abdulhardi Marhoon in private with us
charged on April 28 that Minister Saif "bought-off" several
MPs. According to MP Marhoon, on April 20, Minister Saif met
separately with Shaikh Mohammed Khalid, Dr. Ibrahim
Al-Abdulla, Ahmed Bezhad, Abdulla Al-Alali and several
others. Once proponents of unseating Saif, these MPs became
virtually silent during the proceedings. On April 21 MP
Mohammed Khalild said in the Bahrain Tribune that the
minister surprised members with his poise and grace and
produced all the documents that would stand as strong
evidence in his favor. However, other MPs strongly
disagreed. Deputy Abdul Nabi Salman asserted to POLFSN that
Minister Saif evaded some questions and flatly refused to
answer others. Fareed Ghazi told POLFSN that reports and
rumors of Saif's wonderful performance during the questioning
are propaganda to deter a vote of no-confidence. Many MPs
expressed their doubts to PolFSN on April 28 that there will
be enough votes now to remove Minister Saif. MP Shaikh
Mohammed Khalid told PolFSN on April 28 that he believes
MOFNE will be divided into a Ministry of Finance and a
Ministry of Planning and Economy. He strongly believes that
Minister Saif will be shifted to the Ministry of Planning and
Economy.

--------------
COMMENT
--------------


6. (C) Daunted by constitutional disincentives to legislate,
the COR has aggressively pursued its oversight authority.
The COR's investigation of allegations of GOB corruption and
mismanagement and its questioning of ministers has improved
the legislatures credibility with many Bahrainis, and it
possibly may produce a cabinet reshuffle. The timing of the
questioning also forced Minister Saif to cancel his visit to
the recent IMF/World Bank meetings in the United States.
Saif's apparent survival of this strong attempt to remove him
from office leaves him weakened domestically but still able
to act as Bahrain's lead negotiator for the Free Trade
Agreement (even if he loses the Finance Ministry portfolio).
On the other hand, the rumors of MP vote-buying are troubling
for the near term health of Bahrain's democracy.


7. (C) This scandal has highlighted the COR's new movers and
shakers as well as spotlighted the end of others. Some argue
that Chairman Khalifa Al-Dhaharani,s blatant pro-government
tendencies have weakened him. The debate has further exposed
First Deputy Chairman al-Marhoon's leadership shortcomings.
As a result of their troubles, Salafi Second-Deputy Chairman
Shaikh Adel al-Moawda now appears to be the strongest leader
in the elected house. (NOTE: Al-Moawda, described by many as
a &radical Islamist,8 heads the Council,s Salafi Al Asala
Bloc. END NOTE)
END COMMENT.
FORD