By Courtney Trenwith
Three Kuwait Petroleum Corp execs who were forced into retirement over a $2.2bn Dow Chemical scandal had been reinstated in an earlier court case
Three Kuwaiti oil officials have lost the latest court battle to terminate their jobs over a $2.2bn Dow Chemical scandal, according to local reports.
The Cassation Court on Tuesday accepted Kuwait Petroleum Corporation’s (KPC) challenge against a court of appeal’s order to reinstate the three senior oil officials, who had been forced into retirement over the scandal, Kuwait Times reported.
KPC was ordered by the International Chamber of Commerce’s International Court of Arbitration in 2012 to pay a $2.2bn damages payment to the US company Dow Chemical over the scrapping in 2008 of a $17.4bn petrochemical joint venture. It was one of the largest compensation orders globally.
The government compensation worsened the already politically sensitive deal with Dow Chemical and led to former oil minister Hani Husain referring several senior officials to retirement before resigning himself.
The heads of all of KPC’s eight subsidiaries also were sacked.
At least three of the senior officials successfully appealed, arguing the KPC board did not have the authority to force them into retirement without consulting the Civil Service Commission and they had not served the maximum 35-year term allowed under Kuwaiti law.
But on Tuesday that ruling was overturned. The ruling applies to Sheikha Shatha Al Sabah, who was KPC managing director for training, Ali Al Hajri, who was managing director for financial affairs, and Nasser Al Mudhaf, who was managing director for global marketing.
It has not been reported whether the men will re-appeal.