Kuwait Cabinet Walks Out Of Parliament In Crisis

Some deputies said the walkout could mean the ruler might disband parliament for the second time this year.

Kuwait's government resigned on Tuesday to avert a questioning of the prime minister over the visit of an Iranian Shi'ite cleric, accused of insulting Sunni Islam, several lawmakers said.

Several deputies said it was unclear whether Kuwait's Emir Sheikh Sabah al-Ahmad al-Sabah, who has the last say in politics, had accepted the resignation.

The impasse jeopardises crucial economic reforms such as a plan to set up a financial regulator and recent measures to tackle the impact of the global financial crisis by pumping cash into the Arab world's second-largest bourse hit by a slide.

The uncertainty over the political crisis weighed on the Gulf Arab state's stock market <.KWSE> which briefly touched red territory after news of the resignation.

The government had earlier walked out of a parliamentary session to avoid the request by three deputies to question Sheikh Nasser al-Mohammad al-Sabah.

The three Islamist lawmakers say the Iranian Shi'ite Muslim cleric offended Kuwait's predominantly Sunni Muslim population with comments he made about some of the Prophet Mohammad's companions, whom Sunnis revere.

Fears of a growing sectarian rift have bubbled in the region since Iraq's Sunni Muslim leader Saddam Hussein was toppled by U.S.-led forces in 2003 and replaced by a Shi'ite-controlled government backed by Shi'ite power Iran.

But the three deputies had also wanted to question the prime minister over a wide range of accusations including alleged corruption and mismanagement.

"We heard the news that the government has resigned," Islamist MP Naser al-Sana told reporters in parliament.

Another MP, Jamaan al-Harbash, said the same.

Speaker Jassim al-Kharafi said parliament would not meet on Wednesday because the government had refused to attend.

Without the government in attendance, parliament cannot decide whether to go ahead with plans to question Sheikh Nasser.

Some deputies said the walkout could mean the ruler might disband parliament for the second time this year. The emir dissolved the house in March to end a political standoff and called new elections in May.

"The walkout of the government was a surprise to everyone. It is an indication that parliament might get dissolved," deputy Abdullah Rai al-Fahma said.

Kuwait's emir or his predecessors have reshuffled governments or dissolved parliament five times since 1976 to head off such crises in the OPEC member.

The last assembly dedicated much time to questioning ministers and there have been multiple changes in the government lineup over the past two years as a number of ministers have stepped down under parliamentary pressure.

Changes of the oil minister usually do not have an impact on the energy policy of the world's seventh-largest oil exporter.