Kuwaiti legislator demands probe into Dow Chemical deal: report

10 January 2009

Kuwaiti legislators have demanded an investigation into collapsed joint venture proposal between Dow Chemicals of the US and the government-owned Kuwait petrochemicals company.

Media reports said MP Jamaan Al-Harbash has asked his colleagues to conduct a thorough investigation on the Dow Chemical project.

Dow Chemicals, meanwhile, has threatened to sue the state-owned Kuwaiti company for breach of contract and to claim damages of around $2.5 billion.

Reports also pointed to allegations of commission to the tune of $750 million paid for striking the deal, even as Dow claimed there are other prospective partners in the Gulf other than the Kuwaiti company.

Al-Harbash also said it was important that the actual reason behind the decision of the Supreme Petroleum Council (SPC) to sign the deal and later withdraw from it should be brought to light.

On 28 December, Kuwait's Supreme Petroleum Council (SPC) announced its decision to scrap a multi-billion-dollar deal with the US chemicals giant Dow Chemical