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This Article is From Nov 17, 2019

Kuwait Cabinet Quit Over Corruption Suspicions, Minister Says

(Bloomberg) -- Kuwait's government resigned last week to dodge questions over hundreds of millions of dollars missing from a military aid fund, the country's defense minister said, sparking a rare high-profile row over suspected corruption.

The main reason for last week's cabinet resignation is to try to “avoid presenting answers to the queries and questions presented to it about the transgressions that took place in the army fund and related accounts,” Sheikh Nasser Sabah Al-Ahmed Al-Sabah, the eldest son of Kuwait's ruler, said in a statement.

Sheikh Nasser, who has been spearheading plans to reform the economy, claimed the “violations and suspicions” involving more than 240 million dinars ($790 million) took place before he was appointed defense minister and first deputy prime minister in 2017.

“There were many letters to the prime minister and to the deputy premier and interior minister” to try to get to the bottom of things and justify “huge transfers,” he said. “We didn't get any answers that remove suspicion,” so the case has been referred to the public prosecution, he said.

Kuwaiti Cabinet Resigns But Parliament Dissolution Seen Unlikely

Sheikh Nasser's unprecedented allegations against fellow royals were rare even for a country often seen as the most democratic of the six Gulf states. He denied there were any differences between him and fellow cabinet members, but Kuwaiti newspapers carried statements attributed to a predecessor, Interior Minister Sheikh Khaled Al-Jarrah Al-Sabah, calling the accusations unfounded and asserting his readiness to stand trial to prove his innocence.

Bloomberg couldn't verify the authenticity of the interior minister's statements. A government spokesman couldn't be immediately reached to comment on the defense minister's allegations.

Kuwait's government resigned on Thursday, days after questioning by lawmakers forced the public works minister to quit and triggered a request for a no-confidence vote against the interior minister. Parliament Speaker Marzouq Al-Ghanim said he doesn't think ruler Sheikh Sabah Al-Ahmed Al-Sabah intends to dissolve the legislature.

Kuwait has witnessed tumultuous relations between the elected parliament and the government, appointed by the country's hereditary emir. There have been seven governments since November 2011, when Sheikh Jaber Al-Mubarak Al-Sabah was appointed prime minister.

The former cabinet has been asked by the emir to continue in a caretaker role until a new one is formed.

To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

To contact the editors responsible for this story: Shaji Mathew at shajimathew@bloomberg.net, Amy Teibel, Paul Abelsky

©2019 Bloomberg L.P.

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