NEW CABINET FORMED: SIX NEW MINISTERS, TWO WOMEN,

C O N F I D E N T I A L SECTION 01 OF 03 KUWAIT 000430

SIPDIS

SIPDIS

STATE FOR NEA/ARP, NSC FOR RAMCHAND

E.O. 12958: DECL: 03/26/2022
TAGS: PGOV PREL KISL KU NATIONAL ASSEMBLY
SUBJECT: NEW CABINET FORMED: SIX NEW MINISTERS, TWO WOMEN,
AND ONE RIHS LEADER

REF: KUWAIT 317

Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d)


1. (C) Summary and comment: After three weeks of
consultations, the Prime Minister announced March 25 the
formation of a new Cabinet, which includes six new ministers
and, for the first time in Kuwait's history, two women. The
Cabinet reshuffle is unlikely to affect significantly any key
U.S.-Kuwait bilateral issues. Critical portfolios such as
Defense, Interior, Oil and Foreign Affairs remain with
long-serving ruling family members. The Cabinet also
includes three Islamists, among them a founding member of the
Revival of Islamic Heritage Society (RIHS). Most observers
see the long negotiation period and its outcome as an attempt
by the Amir to strike a stable balance among the competing
political factions that emerged emboldened from parliamentary
elections last June. One prominent human rights activist
said the Prime Minister's consultations represented a
"turning point" in Kuwait's political process by recognizing
the important role played by political blocs both inside and
outside Parliament. Some contacts agreed that this was a
"stable," "non-confrontational" Cabinet that could work more
effectively with Parliament, while others argued that the
appointment of individuals from opposite ends of Kuwait's
political spectrum could create problems that would lead to a
quick collapse. We believe it unlikely that the personnel
changes alone will be enough to improve the Parliament's
rocky relationship with the Government. Unless the
Government exercises stronger leadership, the cycle of
confrontation with Parliament will likely continue and come
to a head once again in the fall. End summary and comment.

Long Wait Over for New Cabinet
--------------


2. (C) Prime Minister Shaykh Nasser Mohammed announced March
25 the formation of a new Cabinet that included six new
ministers, five ruling family members, two parliamentarians,
two women, two Shi'a, and three Islamists, including one
Salafi, who according to several contacts is one of the
founding members of the Revival of Islamic Heritage Society
(RIHS),a Kuwait-based Salafi Islamic charity whose branches
in Afghanistan and Pakistan were designated by the U.S. and
UN in 2002 for involvement in terrorist financing activities.
Dr. Ismail Al-Shatti, a controversial minister affiliated
with the Islamic Constitutional Movement (ICM),the political
arm of the Kuwaiti Muslim Brotherhood, was not re-appointed,
but the ICM's Official Spokesman was appointed instead,
giving the ICM official representation in Cabinet. (Note:
The ICM claimed during his tenure that Al-Shatti had been
expelled from the organization, but then strongly lobbied for
his re-appointment. End note.) The Energy Ministry was
split into an Oil Ministry and a Ministry of Electricity and
Water, reflecting the need to give greater attention to both
files. The Ministry of Public Works was separated from the
Housing Ministry. The new Cabinet is expected to be sworn in
before Parliament on April 2. (Note: This is a formality;
Parliament has no role in approving the ministers. End note.)


3. (C) The Prime Minister's announcement came after an
unusually long consultation period, an indication of the
ruling family's uncertainty about how to handle the
increasingly assertive Parliament. Another reason for the
delay was the reluctance of many prominent Kuwaitis to join
the Cabinet, marking them as a target for opposition
parliamentarians. MG Saber Al-Suwaidan told Emboffs March 25
that one of his friends, a former minister, had been offered
the post of Deputy Prime Minister and was told he could
choose three ministers himself, but still turned down the
position. Other contacts told us they were offered
ministerial portfolios, but declined, preferring to retain
their current positions rather than face a potentially
unpleasant confrontation with Parliament. (Note: It was
Parliament's attempts to interrogate, or "grill," members of
the previous Government that led to its collapse. End note.)

Generally Positive Reaction, Despite Some Concerns
-------------- --------------


4. (C) Immediate reactions to the new Cabinet were generally
positive. Liberal MP Ali Al-Rashed, speaking to local press
on behalf of Parliament's 8-member National Action Bloc,
expressed support for the new Cabinet and said it was
"satisfactory." Shi'a MP Ahmed Lari from the 7-member
Popular Action Bloc similarly expressed support for the new
Cabinet. Shi'a political leader Abdul Hussein Al-Sultan told
Political Specialist the Cabinet incorporated people from a
variety of different political groups, and was therefore
"non-confrontational" and "insulated from grillings."

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Prominent human rights activist Ghanem Al-Najar told local
press that the Prime Minister's consultations were the first
of their kind and represented an implicit recognition of the
expanding role of political blocs in Kuwait's political
system. He believed the inclusion of ministers linked to
various political blocs made the Cabinet "stable," but said
the challenge now was for the Government to outline a
development strategy acceptable to Parliament.


5. (C) Some Kuwaitis, however, were less enthusiastic about
the new Government. ICM Political Relations Chief Mohammed
Al-Dallal praised the expanded involvement of the political
blocs in the Cabinet formation process, but criticized the
Prime Minister for choosing individuals and not a team.
Ibrahim Al-Marzouk, an Islamist Parliament staffer, told
Poloff he was "shocked" that two "extremists" -- Minister of
Education Nouriya Al-Sabih ("extreme liberal") and Minister
of Communications Shireeda Al-Mousharji ("extreme
conservative") -- were appointed to the Cabinet. He claimed
Al-Mousharji was "one of the three main leaders of RIHS,"
along with Tareq Al-Issa and Khaled Sultan. Al-Marzouk said
the Cabinet was "really backwards" compared to previous ones
and "many people have the impression that it will not last."

Economic Impact
--------------


6. (C) From an economic standpoint, the new line-up does
not portend any significant changes in policy though some of
the realignments could significantly impact management and
execution. Two key portfolios -- Commerce/Industry and
Finance -- remain unchanged. The Minister of Social Affairs
and Labor, an important contact on terrorism financing and
the regulation of charities, is also unchanged. The shift to
the health portfolio of former Communications Minister Dr.
Ma'souma Al-Mubarak, a strong ally on aviation and telecom
issues for us, is a loss to the Communications Ministry but
will likely improve management at the Health Ministry,
especially with regard to Avian Flu response. His "extreme
conservatism" notwithstanding, new Communications Minister
Al-Moushirji appears to lack credentials, apart from his U.S.
education, in the key communications portfolios. His
professional background may be better suited to his
dual-hatted role as Minister of State for Parliamentary
Affairs and will likely diminish his oversight of
communications issues.


7. (C) The splitting of the energy portfolio into oil and
electricity/water was expected and is a positive development
that should allow the Oil Minister to focus on the critical
issues of increasing oil and gas production (hopefully by
inviting more assistance from international oil companies)
without being bogged down by this summer's impending
electricity and water shortages. The new Minister for
Electricity and Water, Mohammed Al-Elaim, is an Islamist who
will immediately be confronted with an electricity and water
crisis likely to start in early June and extend through
August. At this point, there are no longer any supply-side
measures the Minister can take before the summer to avoid
major disruptions, which are the result of years of
underinvestment and unrestrained growth in consumption.
Perhaps the Minister's strong engineering background will
enable him to better identify and implement medium and
long-term solutions to avoid further outages from 2008
onward. It is noteworthy that the Housing and Public Works
portfolios have been split, and that Public Works is now
being combined with Municipal Affairs. Municipal Affairs is
responsible for the planning and permitting involved in major
development projects whereas Public Works is responsible for
execution. Ideally, the combination could result in better
coordination, reduced bureaucracy, and faster implementation.
The new Minister of Public Works and Municipal Affairs,
Moussa Al-Sarraf, has a strong background in civil
engineering and urban planning and is well respected by
career professionals within the ministries.


8. (C) The separation of Housing is a mixed blessing. The
Housing Ministry is responsible not only for planning new
housing developments but also for managing Kuwait's bloated
subsidized housing program for Kuwaiti citizens. The
separation could liberate the Public Works Ministry from the
onerous and politically-charged task of assigning homes and
managing citizens, complaints about housing, but the
separation could also result in weaker coordination in the
planning and construction of new housing developments and the
infrastructure required to support them.

Composition of New Cabinet
--------------


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9. (C) -- Prime Minister (No Change): Shaykh Nasser Mohammed
Al-Ahmed Al-Jaber Al-Sabah

-- First Deputy Prime Minister, Minister of Defense, and
Minister of Interior (No Change): Shaykh Jaber Al-Mubarak
Al-Hamad Al-Sabah

-- Deputy Prime Minister and Minister of Foreign Affairs (No
Change): Shaykh Dr. Mohammed Al-Sabah Al-Salem Al-Sabah

-- Deputy Prime Minister and State Minister for Cabinet
Affairs (New): Faisal Mohammed Al-Hajji, a prominent liberal
and former Minister of Social Affairs and Labor.

-- Minister of Finance (No Change): Bader Al-Humaidhi

-- Minister of Oil (New): Shaykh Ali Al-Jarrah Al-Sabah,
previously Minister of Energy.

-- Minister of Communications and State Minister for National
Assembly Affairs (New): Shireeda Abdullah Saad Al-Mousharji,
previously the Administrative Secretary of the National
Assembly, a position he was allegedly promoted to as part of
a deal MP Ahmed Saadoun made with Salafi politicians when he
was Speaker of Parliament. Al-Mousharji received a master's
degree in Business Administration from Hartford University,
Connecticut in 1980.

-- Minister of Social Affairs and Labor (No Change): Shaykh
Sabah Al-Khaled Al-Sabah

-- Minister of Information (New): Abdullah Saud Al-Muhailbi,
previously the State Minister for Municipal Affairs. He is
from the Awazim tribe.

-- Minister of Justice and Minister of Awqaf and Islamic
Affairs (No Change): Dr. Abdullah Maatouq Al-Maatouq, a
moderate Islamist with Sufi leanings.

-- Minister of State for Housing Affairs (New): Abdul Wahid
Al-Awadi, a pro-Government MP.

-- Minister of Commerce and Industry (No Change): Falah Fahad
Mohammed Al-Hajeri, an Islamist MP from the Hawajer tribe.

-- Minister of Electricity and Water (New): Mohammed Abdullah
Al-Elaim, the Official Spokesmen of the ICM and a former MP.
He is from the Mutair tribe.

-- Minister of Health (New): Dr. Ma'souma Al-Mubarak,
previously Minister of Communications. She is one of two
Shi'a in the Cabinet.

-- Minister of Public Works and Minister of State for
Municipal Affairs (New): Moussa Hussein Abdullah Al-Sarraf, a
career bureaucrat in the Municipal Council. Al-Sarraf is one
of two Shi'a in the Cabinet. He received a degree in Civil
Engineering from the University of Toledo, Ohio.

-- Minister of Education and Minister of Higher Education
(New): Nouriya Al-Sabih, a prominent liberal and a former
Assistant Undersecretary at the Ministry of Education.
Al-Sabih is one of two women in the Cabinet and is well known
to the Embassy PD section from her previous post at the
Ministry.


10. (U) Full bios on the new Cabinet members will be
available on our classified website March 27.

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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/
********************************************* *
LeBaron