Identifier
Created
Classification
Origin
06KUWAIT2446
2006-06-21 14:39:00
SECRET//NOFORN
Embassy Kuwait
Cable title:  

ELECTION COUNTDOWN: CORRUPTION EMERGES AS THE

Tags:  PGOV EIND KDEM KU FREEDOM AGENDA 
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VZCZCXRO6285
PP RUEHBC RUEHDE RUEHKUK
DE RUEHKU #2446/01 1721439
ZNY SSSSS ZZH
P 211439Z JUN 06
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 5340
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
S E C R E T SECTION 01 OF 03 KUWAIT 002446 

SIPDIS

NOFORN
SIPDIS

STATE FOR NEA/ARP, LONDON FOR TSOU, PARIS FOR ZEYA

E.O. 12958: DECL: 06/20/2016
TAGS: PGOV EIND KDEM KU FREEDOM AGENDA
SUBJECT: ELECTION COUNTDOWN: CORRUPTION EMERGES AS THE
CENTRAL ISSUE IN THE JUNE 29 PARLIAMENTARY ELECTIONS

REF: A. KUWAIT 2298

B. KUWAIT 2150

C. KUWAIT 556

Classified By: CDA Matt Tueller for reasons 1.4 (b) and (d)

S E C R E T SECTION 01 OF 03 KUWAIT 002446

SIPDIS

NOFORN
SIPDIS

STATE FOR NEA/ARP, LONDON FOR TSOU, PARIS FOR ZEYA

E.O. 12958: DECL: 06/20/2016
TAGS: PGOV EIND KDEM KU FREEDOM AGENDA
SUBJECT: ELECTION COUNTDOWN: CORRUPTION EMERGES AS THE
CENTRAL ISSUE IN THE JUNE 29 PARLIAMENTARY ELECTIONS

REF: A. KUWAIT 2298

B. KUWAIT 2150

C. KUWAIT 556

Classified By: CDA Matt Tueller for reasons 1.4 (b) and (d)


1. (S/NF) Summary: Corruption has emerged as the central
issue in the June 29 parliamentary elections. Allegations of
vote-buying are common and often politically-motivated, but
there is no doubt that some candidates attempt to influence
voters with bribes. Nonetheless, the intensity of the
campaigning and politicking in these elections does not
suggest a system rife with corruption and Kuwaitis view their
democratic process as legitimate. There is also a
potentially positive side to the corruption, which many blame
on members of the ruling Al-Sabah family: it has caused a
pro-reform backlash that threatens to bring down those who
engage in efforts to manipulate voting behavior. To an
unprecedented degree, candidates from all political
backgrounds have united against corruption and in support of
reform. They are backed by a groundswell of popular support
and the intense lobbying activities of pro-reform youth
organizations. If this momentum continues, the next
Parliament could be elected with a mandate to implement key
political reforms. As widespread rumors of vote-buying
suggest, however, there are those who are working actively to
prevent this from happening. End summary.

Will Vote for Cash
--------------


2. (S/NF) The June 29 parliamentary elections are being
framed by many candidates as a battle between reform and
corruption. Accusations of vote-buying by those supporting
and opposing reform are common. While not new to Kuwaiti
politics, Kuwaitis repeatedly tell us that vote-buying in
these elections is worse than ever. While much of this is
politically motivated, there is certainly some degree of
truth to these allegations. Pro-reform candidates accuse
"corrupt forces" in the Government -- a thinly veiled
reference to the "corrupt trio" of Energy Minister Ahmed

Al-Fahd Al-Sabah, Minister of State for Cabinet and National
Assembly Affairs Mohammed Sharar, and Shaykh Mohammed
Abdullah Al-Mubarak Al-Sabah, head of the Government Bodies
Assessment Agency, the government agency charged with
investigating cases of government corruption -- of being
behind much of the vote-buying activities. Some pro-reform
candidates have even accused the "corrupt trio" by name, an
unprecedented indication of the extent of popular frustration
with widespread government corruption. The issue of
corruption has also received considerable media coverage
(septel).


3. (U) One of the most outspoken proponents of reform, Ahmed
Saadoun, blasted the Government during a recent campaign
rally. Saadoun, a member of Parliament since 1971 and a
three-time Speaker of Parliament, raged, "We don't really
have a government. We have a country that is run by one or
two people...The confrontation today is between the Kuwaiti
people and corruption despots...In this situation there will
be only one result: a victory for the people. We (pro-reform
MPs) and the Kuwaiti people will not leave the country a
hostage in the hands of the corruption symbols." Other
candidates' criticism of the Government has been equally
sharp.


4. (S/NF) Ahmed Deyain, an astute liberal political analyst,
told Poloff June 19 that the level of corruption in these
elections was unprecedented. Vote-buying activities by some
candidates, like former MP Jamal Al-Omar, were "flagrant,"
Deyain said, and driven by some high-level Government and
ruling family members. He specifically mentioned Energy
Minister Shaykh Ahmed Al-Fahd Al-Sabah and his brother, the
Director of Kuwait State Security, Shaykh Athbi Al-Fahd
Al-Sabah, who he said "everyone knows are interfering in the
elections."


5. (C/NF) The rapid rise in oil prices and the accompanying
oil boom has fueled corruption in Kuwait. In 2003, when the
last elections were held, the price of Kuwaiti crude was
roughly $27 per barrel, government revenue was $24.28 billion
and expenditures were $19.33 billion. Today, the price of
Kuwaiti crude is $60.82 per barrel, and in 2005 government
revenue was $47 billion and expenditures were $26 billion.
(Note: These figures have not been adjusted for inflation.
End note.) Despite measures to appease the public such as
the 2005 cancellation of outstanding electric bills and a 200
KD ($700) rebate to citizens, Kuwaitis are increasingly
beginning to ask where all this money is going. Many cite

KUWAIT 00002446 002 OF 003


the current water shortage plaguing the country as an
indication of endemic infrastructure problems and poor
planning by the Government. These factors play into the
widespread impression that members of the Government and the
ruling family are enriching themselves at the expense of the
country.

Khorafi's Pocket Change
--------------


6. (S/NF) While concrete evidence of vote-buying is almost
impossible to obtain, almost everyone is willing to share
anecdotal evidence of uncertain validity. One more
trustworthy story involves Jassem Al-Khorafi, the Speaker of
Parliament since 1999. A high-ranking contact at the Central
Bank told Poloff during a casual conversation that Al-Khorafi
had withdrawn six million KD ($20.8 million) in the last
couple of weeks for election expenses. The contact believed
with absolute certainty that this money would be used to buy
votes. He cited such evidence of widespread vote-buying as
the reason he was not planning to vote.


7. (S/NF) Seemingly corroborating this information, an Amcit
who works in Kuwait for a U.S.-based private equity firm told
Poloff that one of his main clients, a nephew of Al-Khorafi,
had asked him jokingly if he could accept cash for a
multi-million dollar investment. Al-Khorafi's nephew
explained that he had "$20 million in Kuwaiti dinars" sitting
in three suitcases in his office. Although he did not
explicitly say this money was from his uncle or that it would
be used to buy votes, this was the implication the Amcit drew
from the context of the conversation and his colleagues'
comments to him later. The Khorafi family company, run by
Jassem's brother Nasser, has $57.2 billion in assets. Nasser
is ranked by Forbes magazine as the 29th richest person in
the world with $12.4 billion. Nasser's net worth increased
$3.4 billion in 2005 alone. Many have accused the Khorafis
of supporting the Government in return for lucrative
contracts.

Corruption Elicts Pro-Reform Backlash
--------------


8. (C/NF) On the positive side, allegations of corruption
and vote-buying have been generally met with public outrage.
Pro-reform candidates and their supporters have strongly
criticized the Government for failing to take action to
prevent these activities and have vowed to continue waging
their campaign against "corrupt elements." In addition,
several other local NGOs are also planning to independently
monitor the elections (ref A),and in at least one district
hundreds of people have signed a petition requesting the
Ministry of Interior to stop vote-buying activities.
According to a recent poll conducted by Al-Qabas, a
pro-reform Arabic daily, 90.5% of the 1670 respondents said
they did not believe the government was serious about
preventing pre-election primaries and vote-buying activities.



9. (SBU/NF) Perhaps due to these pressures, the Ministry of
Interior announced June 20 that it had approved the request
of the Transparency and Reform Alliance, a coalition of 11
local NGOs (ref C),to follow up on reported cases of
vote-buying in the elections. The Ministry has also agreed
to "organize a rally to boost public awareness that
vote-buying is a crime against society," the local Arabic
daily Al-Seyassah reported. In addition, following the
example of the local Arabic daily Al-Watan, the Ministry
established a hotline for people to call to report incidents
of vote-buying.


10. (C/NF) Reports of electoral corruption are also
providing further impetus and momentum to the grassroots,
pro-reform youth movement that emerged in support of
electoral reform (ref C). Pro-reform activists are
reportedly asking all candidates to sign a "Reform Charter,"
pledging to reject any Cabinet that includes Shaykh Ahmed
Al-Fahd and Mohammed Sharar, and to make reducing the number
of electoral constituencies their first legislative priority.
Some have even suggested the new Parliament could resign if
and when a five constituency bill is passed, forcing new
elections to be held under the new electoral system. Several
candidates Poloff spoke with, however, said that while they
had heard of the charter, no one had approached them asking
them to sign anything. In tandem with these efforts, other
youth organizations have reportedly asked candidates to sign
a financial disclosure agreement promising to disclose their
personal financial records if they are elected in an effort
to increase transparency. According to Al-Watan, five

KUWAIT 00002446 003 OF 003


candidates supported by the Islamic Constitutional Movement
(ICM),the political arm of the Kuwaiti Muslim Brotherhood,
have already signed the agreement.

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Visit Kuwait's Classified Website:
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