Cablegate: Parliamentary Investigation of Kbr Contract Finds

This record is a partial extract of the original cable. The full text of the original cable is not available.

231109Z Jul 05

UNCLAS KUWAIT 003241

SIPDIS

LONDON FOR TSOU

E.O. 12958: N/A
TAGS: ECON EPET MOPS KU IZ
SUBJECT: PARLIAMENTARY INVESTIGATION OF KBR CONTRACT FINDS
FAULT WITH ENERGY MINISTER

REF: KUWAIT 1253

1. July 21 newspapers reported that the parliamentary
committee investigating suspected irregularities in
humanitarian fuel sales to the U.S. Army in Iraq in 2003
(reftel) has recommended that Energy Minister Shaykh Ahmad
Al-Fahed Al-Ahmad Al-Sabah and other top oil executives "be
held responsible for legal, financial, and administrative
violations," and any other damages resulting from the sales.
MP Ali Al-Rashed, head of the probe committee, has asked that
the case be referred to the public prosecutor.

2. In a strong rebuttal of the charges, Shaykh Ahmad told
reporters that it was KBR, not the Kuwait Petroleum
Corporation (KPC) or the Energy Ministry, that chose the
private firm Altanmia for the contract, and that not only did
Kuwait not lose any money on the deal but that on the
contrary, KPC "made a profit of $11 million." He added, "I
take the responsibility for allowing this contract for the
purpose of overthrowing Saddam and his regime and liberating
the Iraqi people. This is a medal of honour for me."

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