Identifier
Created
Classification
Origin
06KUWAIT560
2006-02-15 15:56:00
SECRET
Embassy Kuwait
Cable title:  

SHI'A MP DISILLUSIONED BY RAMPANT GOVERNMENT

Tags:  PGOV EINV PINR KU 
pdf how-to read a cable
VZCZCXRO8434
PP RUEHDE
DE RUEHKU #0560/01 0461556
ZNY SSSSS ZZH
P 151556Z FEB 06
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 3068
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
S E C R E T SECTION 01 OF 02 KUWAIT 000560 

SIPDIS

SIPDIS

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

E.O. 12958: DECL: 02/14/2026
TAGS: PGOV EINV PINR KU
SUBJECT: SHI'A MP DISILLUSIONED BY RAMPANT GOVERNMENT
CORRUPTION

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

S E C R E T SECTION 01 OF 02 KUWAIT 000560

SIPDIS

SIPDIS

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

E.O. 12958: DECL: 02/14/2026
TAGS: PGOV EINV PINR KU
SUBJECT: SHI'A MP DISILLUSIONED BY RAMPANT GOVERNMENT
CORRUPTION

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


1. (S) Summary and Comment: Saleh Khorshid, a moderate Shi'a
member of Parliament, told Poloff in a February 15 meeting
that he was pessimistic about the prospects for political and
economic reform in Kuwait given what he characterized as
wide-spread, institutionalized government corruption. He
said corruption permeated the top ranks of Kuwaiti
government, heavily influenced political decision-making, and
blocked progress on important legislation. He told of
Cabinet Ministers offering lucrative contracts and business
deals to MPs in exchange for their support on particular
issues, and gave two specific examples of corrupt activities
from his experience. He said any legislation could be passed
through Parliament given the right price. Khorshid suggested
Shaykh Nasser Mohammed, formerly Minister of Amiri Diwan
Affairs, was chosen as Prime Minister due to the favors he
did for Shaykh Sabah, then Prime Minister, including
"providing" the late Amir's signature on documents. Khorshid
was not optimistic the new Government would seriously address
important legislation before the 2007 parliamentary
elections. We find Khorshid's remarks credible. Family and
business relationships amongst politicians, ministers, and
businessmen in Kuwait are incestuous and few major decisions
are made without considerable resort to personal connections
and shady dealing. While the system is frequently
criticized, so many individuals profit from it that there is
little incentive for a systemic overhaul. End summary and
comment.

Corruption at the Top
--------------


2. (S) MP Saleh Khorshid, a former Minister of Commerce,
told Poloff in a February 15 meeting that he was
disillusioned by the rampant corruption that permeated all
aspects of the Kuwaiti political system. Some of the most
vocal proponents of anti-corruption measures were some of the
worst offenders, he said. He specifically mentioned National
Assembly Speaker Jassem Al-Khorafi's sons and, by
implication, the Speaker, who Khorshid said "must know about

it because he benefits from it"; Kuwait Chamber of Commerce
Chairman Ali Al-Ghanim, who Khorshid said had even sponsored
a conference on corruption and whose wife, Dr. Fayzah
Al-Khorafi, was the Speaker's sister; and "the people
surrounding (Amir) Shaykh Sabah Al-Ahmed." "Everyone knows
it, but they won't say anything," he added. Khorshid claimed
that even Shaykh Sabah, while Prime Minister, had personally
pressured him to "break the law." (Comment: Khorshid
mentioned this episode in the midst of a general discussion
on government corruption, and did not seem intent on
slandering the Amir. End comment.) Khorshid characterized
Shaykh Sabah, Jassem Al-Khorafi, the Kuwait Chamber of
Commerce as the "triangle of decision-making power" in Kuwait.

Two Episodes the MP Says Highlight Rampant Corruption
-------------- --------------


3. (S) Asked for specific examples of corrupt activities,
Khorshid related two from his experience in government.
First, while Minister of Commerce, Khorshid said four
"powerful" MPs were bribed to "pressure" him to issue a
ministerial certificate substantiating Jassem Abdul Rahman
Al-Baher's claim to be Chairman of the Kuwait Real Estate
Company (KREC),a claim disputed by a rival. According to
Khorshid, one MP affiliated with the Islamic Constitutional
Movement (ICM),Mubarak Al-Duwaila, received 70,000 KD
($240,000) from KREC for his support. Another liberal MP,
Mishari Al-Usami, served as the company's lawyer and was paid
650,000 KD ($2.2 million) per year. Khorshid said the two
other MPs -- Faisal Al-Shaya, a liberal affiliated with the
Kuwait Democratic Forum (KDF),and Abdullah Nibari, the
current Secretary General of the KDF -- were less directly
involved.


4. (S) The second episode Khorshid mentioned related to the
Kuwait Northern Warehousing Project, which he introduced in
2002 when he was Minister of Commerce. (Comment: Post is
unaware of a project by this name. End comment.) According
to Khorshid, the project, which would have unspecified
positive "political, economic, security, and social" effects,
was being stalled by a coalition of Hamad Sabah Al-Ahmed, one
of the Amir's two sons; one of Al-Khorafi's sons; and "one
other person." (Comment: Khorshid clearly knew who the third
person was, but did not want to say. End comment.) Khorshid
claimed the plan to develop Kuwait's northern oil fields,
known as Project Kuwait, was being similarly delayed.

Prime Minister Not a Reformer
--------------

KUWAIT 00000560 002 OF 002




5. (S) Khorshid said he was disillusioned by the rampant
corruption and predicted the new Government would accomplish
little of substance before the 2007 parliamentary elections.
He said he was "surprised" and "disappointed" in the choice
of Shaykh Nasser Mohammed Al-Ahmed as Prime Minister.
Khorshid suggested Shaykh Nasser Mohammed, formerly the
Minister of Amiri Diwan Affairs, was chosen because he had
"helped Shaykh Sabah a lot when he was Prime Minister" by
"providing" the late Amir's signature on documents.
(Comment: National Guard Chief Shaykh Salem Al-Ali Al-Salem
previously criticized the Government for the same reason,
claiming Shaykh Nasser Mohammed was "unconstitutionally"
forging the Amir's signature on Government documents. End
comment.) Noting that Shaykh Nasser Mohammed lacked Shaykh
Sabah's charisma and influence in Parliament, Khorshid
predicted he would soon have "a number of problems" in
Parliament and would be replaced after the 2007 national
elections. (Note: The Prime Minister is not an elected
position and it would be remarkable for a sitting Prime
Minister from the ruling family to be unseated. End note.)

Bio Note
--------------


6. (C) Salah Khorshid, one of five Shi'a MPs in the current
Parliament, was re-elected on July 5, 2003. He has been a
Member of Parliament since 1996 and was also Minister of
Commerce and Industry in the previous Government. He is
considered pro-government on most issues and supports U.S.
efforts in Iraq. He was born in 1963 and smokes heavily.
After recent heart problems, he underwent surgery to install
a pacemaker. He speaks good English and bragged to Poloff
about his collection of sports cars, which included a Bentley
GT and a brand new red Ferrari F430.

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For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s

Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
TUELLER