KUWAIT CITY, Aug 25: The oil sector is embroiled in another scandal as new allegations of fraud and corruption emerge prior to the completion of investigations into the Shell contract, reports Al-Seyassah daily quoting sources.

Sources disclosed the Kuwait Oil Company (KOC) has signed a consultative contract with an American company, similar to its deal with Shell. Sources said the contract with the American company is worth $365 million and valid for three years renewable based on the agreement of both sides. Sources added the contract signing was completed without the knowledge of the Central Tenders Committee (CTC) and the Tenders Committee at KOC.

Sources asserted the American company contract has raised doubts because it controls 60 percent of the oil sector workforce and has sidelined many equally competent local and international companies.
Meanwhile, the existence of gas depots in residential areas poses a grave threat to the lives of residents, reports Al-Seyassah daily quoting Municipal Council member Jenan Boushari.

Boushari stressed the need to conduct a study of supplying gas to new residential areas and utilization of gas stations for the benefit of the residents. She said the Kuwait Municipality is looking at the possibility of removing all gas depots and channel gas through special networks, in addition to the construction of a central gas depot in the six governorates.

In an unrelated development, Al-Anba daily has reported that Minister of Public Works and State Minister for Municipality Affairs Dr Fadhel Safar has called for a meeting to discuss the proposed allocation of site for the establishment of a journalist city in accordance with Article 12 of law number 5/2005. Sources revealed the proposed site in Shadadiya measures 726,000 square meters and it will be handed over soon to the Information Ministry.