Cablegate: Royg Cabinet Scraps Controversial Nuclear Agreement

VZCZCXYZ0025
PP RUEHWEB

DE RUEHYN #2029 3041309
ZNR UUUUU ZZH
P 311309Z OCT 07
FM AMEMBASSY SANAA
TO SECSTATE WASHDC PRIORITY 8321

UNCLAS SANAA 002029

SIPDIS

SIPDIS

PASS TO ALEX BURKART ISN NESS

E.O. 12958: N/A
TAGS: ECON EINV ENRG YM
SUBJECT: ROYG CABINET SCRAPS CONTROVERSIAL NUCLEAR AGREEMENT

REF: SANAA 1095

On October 30 the ROYG announced that, during its weekly
meeting on October 29, the Cabinet refused to endorse
controversial reftel agreement between the US company Powered
Corporation and the Ministry of Energy and Electricity. The
decision came one day after reports that the Supreme National
Authority to Combat Corruption (SNACC) asked Prime Minister
Ali Mujawar to halt the agreement until the SNACC could
investigate the matter further. A Cabinet statement explains
that the decision was taken after "the publication of
information that the company is not qualified to carry out
the reactors project." COMMENT: The lack of endorsement by
the Cabinet effectively "scraps" the agreement. END COMMENT.
SECHE

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