By Ulf Laessing
KUWAIT (Reuters) - Kuwait's ruler has accepted the resignation of the government and reappointed his nephew Sheikh Nasser al-Mohammad al-Sabah as prime minister, the parliament speaker said on Monday.
Kuwait's cabinet tendered its resignation last month over a request by three Sunni Islamist parliamentarians to question the prime minister but the emir, who has the last say in politics, did not immediately accept it.
"The emir decided to accept the resignation of the government and there are instructions to reappoint Sheikh Nasser as prime minister," Jassim al-Kharafi told reporters at parliament. "This is a chance to resolve the negative (issues)."
He said that no timeframe had been set for the formation of the new cabinet.
The three deputies were objecting to Sheikh Nasser's decision to allow a visit by an Iranian Shi'ite Muslim cleric, who they said had insulted the Prophet Mohammad's companions.
The three had also wanted to question the prime minister over alleged corruption and mismanagement of funds in the world's seventh-largest oil exporter.
The crisis jeopardises crucial economic reforms such as a plan to set up a markets regulator and recent measures to tackle the impact of the global financial crisis by pumping cash into the Arab world's second-largest bourse to reverse months of declines.
The Kuwaiti parliament is regarded as one of the most politically open among the Gulf Arab states, and regularly challenges the government.
The emir dissolved parliament and called fresh elections earlier this year to resolve a previous standoff between parliament and the government, but relations do not appear to have improved.
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.
The emir or his predecessors have dissolved parliament five times since 1976 to avoid questioning sessions and the no-confidence votes that often follow.
Kuwait's oil policy is managed by a council and changes in government have no direct impact on oil policy.
But Kuwaitis have voiced growing frustration at the political upheavals they say are holding their country back at a time when unity is critical to overcome the impact of the global financial crisis.
(Writing by Lin Noueihed, editing by Mark Trevelyan)
