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11-06-2012 - Kuwait Times

You betrayed Dow and us

Lawmakers responsible for the cancelation of the K-Dow mega project are desperately trying to find a scapegoat to blame for the huge loss suffered as a result of its cancelation. The self-proclaimed ‘defenders of public funds' are searching for a victim they can sacrifice in order to cover up for their mistakes. The Parliament, led by Speaker Ahmad Al-Saadoun who threatened to file a grilling motion against the former prime minister, is working on forming an investigations committee to probe the reasons that led to the huge financial losses which the majority bloc believes only amounts to the $ 2.16 billion fine that Kuwait is required to pay Dow Chemical Company.

They are trying hard to overlook the facts that hold them responsible and blame oil sector officials of accepting a large penalty clause that was included to attract Dow Chemical Company into entering into a joint venture with the Kuwaiti government. In simple words, if you negotiate with a man who offers his house for sale at KD 130,000 and you offer to buy it at 100,000 instead, customs lay down that you must make a down payment that proves your willingness to buy. This payment is non-refundable if the buyer agrees to the offer you put forward. This is exactly what happened in the K-Dow deal. Moreover, experts indicate that Dow Chemical Company actually gave concessions when it agreed on a fixed penalty clause which otherwise would require a party to pay the entire value of the contract in case unilateral termination takes place.

In other words, Kuwait or MPs who put the pressure on the Cabinet to cancel the deal ‘betrayed' Dow Chemical Company when Kuwait aborted the project after the American company finalized preparations that include taking loans necessary to fund the project. Therefore, requiring that Kuwait compensate Dow Chemical Company for damages resulting from the canceled project appears to be natural. The party to be blamed is the one that canceled the project, or precisely, forced the Cabinet to cancel the deal.

Does the Parliament have the guts to hold accountable the real persons responsible for the case? Would parliamentary investigations report include findings that blame Ahmad Al-Saadoun or other oppositionist MPs? What is the real reason behind the investigation committee's formation to find more ways to blame the former Cabinet and hold oil sector officials responsible, while ignoring any responsibilities that lawmakers share.-Al-Qabas.


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