US embassy cable - 05KUWAIT3241

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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TUELLER