TERROR FINANCE: INCREASING PRESSURE TO EASE GOK

S E C R E T SECTION 01 OF 02 KUWAIT 003995 SIPDIS NOFORN SIPDIS STATE FOR NEA/ARP, EB/ESC/TFS, S/CT TREASURY FOR PATRICK HEFFERNAN, RACHEL LOEFFLER AND KRISTEN HECHT E.O. 12958: DECL: 10/04/2016 TAGS: PREL KTFN PTER KU SUBJECT: TERROR FINANCE: INCREASING PRESSURE TO EASE GOK CHARITY OVERSIGHT REF: KUWAIT 3503 Classified By: DCM Matt Tueller for Reasons 1.4 (b) and (d) ¶1. (S/NF) Summary: On October 3, Econoff met with Nasser Al-Ammar, Director of the Charities and Philanthropic Organizations Department at the Ministry of Social Affairs and Labor (MOSAL) to discuss a perceived shift in his statements on MOSAL's charity oversight responsibilities. Al-Ammar, who has been a consistent force behind the drafting and implementation of MOSAL's regulations, described increasing pressure from Islamists, including an ongoing attempt by the Revival of Islamic Heritage Society (RIHS), the Social Reform Society (SRS),and a member of parliament to have his office disbanded. He justified ongoing efforts to build consensus with charities as an attempt to head off a full-scale assault by these and other influential Islamist politicians. Al-Ammar confirmed recent press reports that charities are collecting cash at their offices but stressed that, as in years past, this exception is only for the month of Ramadan. Finally, as reflected in recent statements to the press, Al-Ammar appeared to distance MOSAL from any responsibility for charities' use of funds outside of Kuwait. He initially insisted that the Ministry of Foreign Affairs (MFA) is solely responsible -- although charities cannot transfer money out of Kuwait without MOSAL authorization -- but later acknowledged that MOSAL is responsible in coordination with MFA. End summary. (S/NF) RIHS and SRS Join Ranks -------------- ¶2. (S/NF) Econoff requested an October 3 meeting with MOSAL official Nasser Al-Ammar to discuss a perceived change in the tone of his statements to the press and reports that charities were again collecting cash donations. The reason for the apparent shift became apparent as Al-Ammar described an ongoing attempt to disband his Department. He explained that in July, two charities -- the Revival of Islamic Heritage Society (RIHS) and the Social Reform Society (SRS) -- joined forces with Duaj Al-Shammari, a member of the National Assembly's Human Rights Committee, to file a claim against Al-Ammar. According to Al-Ammar, Al-Shammari accused Al-Ammar's office of "strangling charitable works" and called 
for it to be disbanded during a July meeting with then newly-appointed Minister of Social Affairs and Labor Sheikh Sabah Khaled Al-Hamad Al-Sabah. Al-Ammar identified the charity representatives involved as RIHS representative Ahmed Al-Huti and SRS representatives Saad Al-Rajki, Ahmed Al-Huli, and Ahmed Al-Falah. ¶3. (S/NF) Al-Ammar, who was out of the country at the time, said he was completely surprised by the accusations from individuals he considered friends. Al-Ammar personally received both the RIHS and SRS representatives in his office on several occasions and helped them complete the required ministerial procedures. He also found the cooperation between the two charities odd since they do not normally work together. When asked why "his friends" would do this, Al-Ammar speculated that it may have something to do with the fact that the Russian government has designated both charities as supporters of terrorism in Russia. ¶4. (C) Al-Ammar further noted that his MOSAL colleagues are aware of the pressure he is under and are watching the situation carefully. No one wants his position, he said, because of the growing pressure from the outside. For the moment, Al-Ammar believes his job is relatively safe since the new Minister has a security background and understands the important role of the Department and the speciousness of the accusations against Al-Ammar. ¶5. (SBU) With regards to cash collection, Al-Ammar noted that as in years past MOSAL has given charities special dispensation to collect cash donations during the holy month of Ramadan (September 23 - October 24) only. When Ramadan ends, he said, cash collections will end. Cash donations can only be collected in the charities' offices and must be recorded on MOSAL-issued receipt ledgers. Islamist Influence on the Rise -------------- ¶6. (C) Al-Ammar stated that MOSAL does not want to clash with charities or the general population. He believes KUWAIT 00003995 002 OF 002 Kuwaiti charities reflect the sentiments and outlook of a large percentage of the population, which he does not want to antagonize. He noted the successes of Islamist candidates in the June parliamentary elections. Accordingly, he described ongoing efforts to involve charities in the deliberative process as an attempt to show MOSAL's good intentions and head off complaints from Islamist MPs. If the charities themselves are involved in the decision-making process, he said, "it will be more difficult for them to point a finger at MOSAL later on." Who is Responsible: MOSAL or MFA? -------------- ¶7. (S/NF) When asked, Al-Ammar echoed recent statements to the press saying that the Ministry of Foreign Affairs (MFA), not MOSAL, is responsible for charities' use of funds outside of Kuwait. When Econoff noted that charities must have MOSAL approval in order to transfer money abroad, he offered that MOSAL is responsible in coordination with MFA. (Comment: Given increasing focus on RIHS and SRS activities abroad the timing of these statements may indicate a greater understanding of the scope of the accusations than Al-Ammar was willing to express. End comment.) Electronic Collection Still on the Table -------------- ¶8. (SBU) MOSAL continues to explore new electronic methods for charities to collect donations (reftel). However, a proposed text messaging service is on hold due to a legal dispute over whether this is patented technology. MOSAL's Operations Department is also reviewing vendor proposals for electronic kiosks and hand-held collection machines, but none have been purchased to date. Charities Could Do More -------------- ¶9. (SBU) Al-Ammar also expressed his continued frustration that charities are not taking a more active role in suggesting enhancements like the electronic collection of donations. Econoff commented that MOSAL seems to be making a concerted effort to elicit feedback by involving charities in the deliberative process. ******************************************** For more Embassy Kuwait reporting, see: http://www.state.sgov.gov/p/nea/kuwait/index. cfm Or Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ******************************************** LeBaron