Mar.26, 2010, 21:39:59

Bahrain issued on Thursday evening a gag order barring local media from further reporting on an ongoing investigation with a former minister about multi-million money-laundering operations, local al-Wasat newspaper reported Friday.

Mansour bin Rajab, a former state minister who was sacked Monday against the backdrop of his arrest two weeks ago over money- laundering accusations, has been under interrogation over the past three days and would be quizzed once more on Sunday.

The gag order was necessary to ensure the confidentiality and integrity of the investigation, according to a statement by the Bahraini public prosecutor.

The move came as there had been inaccurate and speculative reporting by the media, the statement said.

Last Friday, Bahrain's Interior Ministry said a senior official was arrested over accusations of conducting money-laundering operations inside Bahrain and abroad, providing no details on the suspect's identity. Yet, local press reports identified the official as bin Rajab, a minister without a portfolio, who was released later for health reasons.

Local press reported on Monday that bin Rajab was questioned about military data that was sent to Iran. An aide to the minister was also reportedly questioned about a Kuwaiti woman allegedly frequented the minister's office lately and was arrested by Kuwaiti authorities over leaking information to the Iranian Revolutionary Guards.

The former minister repeatedly denied any involvement in the alleged money-laundering operations, that some local media reports said, mounted to 12 million Bahraini dinars (31.8 U.S. million dollars).

Bin Rajab is the first minister in the Gulf state since its independence in 1971 to be prosecuted for alleged illegal activities while still in office. Under Bahraini law, ministers, unlike members of parliament, have no immunity.

Bahrain in 2001 became the first Gulf country to issue an anti- money laundering law, which laid down legal framework to ensure the disclosure of any suspicious financial activity. The Gulf state was also chosen to host the Middle East and North Africa Financial Action Task Force (MENAFATF), a regional anti-money laundering watchdog.