KUWAIT, Aug 18 (KUNA) -- Kuwait's Minister of Oil and Minister of Electricity and Water Mohammad Abdullah Al-Olaim anew refuted Monday the claims of MPs of the Popular Action Alliance (PAA) on the alleged stashing away of Kuwait oil abroad.

He issued a statement to clarify any misinformation regarding this controversial issue in which he said he wanted to make clear to "our respectable PAA brothers" misunderstandings about this issue.

"First, my press release carried by local dailies on August 14, 2008, regarding the alleged stashing away of Kuwaiti oil abroad had neither misinformation nor ambiguities.

"I have made clear that there was no single barrel of Kuwaiti oil stored secretly abroad. I was replying to question by MP Ahmad al-Saadoun, member of the Popular Action Alliance, on a reported deal between Kuwait Petroleum Corporation (KPC) and South Korea.

"Second; the question, based on reports carried by local and foreign press on August 5, 2008, refers apparently to the current period, rather than the period following 2005.

"All deals, budgets and balance sheets of the independent corporations were scrutinized and verified by the State Audit Bureau (SAB) in certified reports.

"Third; the reports were tabled to the respectable MPs including the PAA members. Then how can they bring into question the credibility of such reports?

"It was clear that Al-Saadoun referred to the current period as I said before.

"I reiterate that my ministry and KPC did nothing in secret or in counter to Act 66 for 1998.

"I would like to affirm that the claims of the PAA MPs have no grain of truth and are totally baseless.

"Regarding the project of launching a fourth refinery I would like to make clear that Act No. 66 for 1998 concerns the state institutions and public corporations.

"It does not cover the oil companies which have independent legal status and are governed by the Commercial Business Act and other regulations. Thereby, the claims of PAA MPs on contravention of the project to that law are totally baseless.

"I would also like to remind you that SAB acknowledged in its report dated October 20, 1998, that the oil companies affiliated to KPC did not fall under SAB jurisdiction.

"The refinery project has been referred to the fair judiciary of Kuwait some six months ago.

"After investigations, meticulous review of all relevant documents and hearing the testimonies of concerned officials of the oil sector as well as SAB officials, the judiciary reached the conclusion that the project did not infringe on the public funds and that it followed all necessary legal steps.

"The judiciary noted that Kuwait National Petroleum Company (KNPC) followed the relevant legal steps to get the approval of the Higher Council of Oil (HCO) numbered 1-75 (3-2005) on July 19, 2005, as well as the approval of the then cabinet.

"The Committee on Fatwa (advise) and Legislation (CFL) acknowledged in its decree No 2-35 for 2008 that the contracts signed by oil companies were not administrative deals and that the oil companies were private companies that could sign commercial deals.

"The deals of these companies, according to the fatwa, do not fall under the jurisdiction of the Central Tenders Committee (CTC) or the CFL jurisdiction unless there is a decision by the HCO to the contrary.

"They are governed by neither Article V of Act 12 for 1966 nor SAB jurisdiction.

"Nevertheless, the SAB report on the KNPC activities did not include any negative observations about these activities. This affirms the legality of all deals and procedures of KNPC.

"The National Assembly (parliament) affirmed in its report dated July 7, 2007, that KNPC followed the legal steps to restore the costs of the project tender.

"All these facts show that the government measures were in line with provisions of the laws and the recommendations of the respectable National Assembly and show the inaccuracy of the PAA statement.

"In all our procedures we adhere to the provisions of the law and constitutions in line with the oath of loyalty to the homeland HH the Amir.

"In conclusion, I would like to say to the respectable PAA MPs that they can reach truth easily without resort to slander or branding other parties 'liars, untrue and unfaithful," said Al-Olaim.

Copyright Kuwait News Agency 2008.