UAE CHARITY - HUMAN APPEAL INTERNATIONAL

S E C R E T SECTION 01 OF 03 ABU DHABI 002169

SIPDIS

STATE FOR EB AWAYNE, S/CT FOR MMILLER AND NEA/ARPI FOR
RSMYTH
MANAMA FOR OFAC ATTACHE JBEAL
NSC FOR PHEFFERNAN AND JHERRING

E.O. 12958: DECL: 05/15/2015
TAGS: PTER KTFN EAID EFIN IQ TC UAE
SUBJECT: UAE CHARITY - HUMAN APPEAL INTERNATIONAL

REF: A. A) 2003 STATE 1392054

B. B) 2003 STATE 79970

C. C) 2003 ABU DHABI 2598

D. D) 2005 ABU DHABI 864

E. E) 2003 ABU DHABI 2598

Classified By: Ambassador Michele J. Sison for reasons 1.4 (b) and (d).


1. (S) Summary and Comment: Human Appeal International (HAI),
headquartered in the Emirate of Ajman, is one of the most
visible UAE international charities. Aware of ongoing U.S.
concerns about HAI's activities and terror finance
connections, Econoff visited HAI on April 25 and met with the
founder and Secretary General of HAI, Salem Ahmed Abdul
Rahman Al Nuaimi, to discuss HAI's structure and charitable
endeavors. Al Nuaimi explained that HAI is a centralized
organization, with the headquarters exercising oversight of
the field and fundraising office activities, and it targets
its efforts to health care, educational development, and
emergency relief. The following snapshot of HAI is intended
to inform Washington consumers about HAI's structure and
activities. We note that it is based on comments from HAI
officials directly to an Embassy officer. We cannot confirm
or refute whether HAI's headquarters is aware that some of
its staff has contributed financial support to individuals
and entities associated with al-Qaida and Hamas. End summary
and Comment.

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Background
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2. (S) Prior to 2003, the Embassy raised concerns with the
UAEG regarding HAI support for Chechen extremists. The UAEG
quietly approached HAI, which took measures meant to ensure
that its field branches ceased funding the Chechen groups of
concern. In 2003, there were indications that HAI was
sending financial support to organizations associated with
Hamas and that members of its field offices in Bosnia,
Kosovo, and Chechnya had connections to al-Qa'ida associates
(refs A and B). The UAEG indicated its willingness to take
action against HAI, but requested the USG provide them with a
solid intel packet outlining the case against HAI (ref C).
There was no further action on this track. In light of this
history, Econoff visited the HAI headquarters in Ajman, but
did not raise the above noted concerns about terror finance
links.

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Broad Charitable Endeavors
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3. (U) HAI is the third largest charitable organization in
the UAE, behind the Red Crescent and Mohammed Bin Rashid
Humanitarian and Charity Foundation (MBR Foundation),and it
is closely associated with (and operates under the patronage
of) the ruling family of Ajman Emirate. HAI's stated goal
is to provide aid to needy families within the UAE and
abroad. Its activities fall into five broad categories:
health care, social development, orphan and child care,
education, and urgent relief. According to Salem Ahmed Abdul
Rahman Al Nuaimi, the founder and Secretary General of HAI,
one of HAI's main international endeavors is orphan
sponsorship. HAI has sponsored 23,000 orphans -- who HAI
defines as children whose fathers have died -- providing them
with food, education, and medical care. HAI has also built
24 schools, 412 educational centers, and 23 hospitals and
clinics. HAI operates 30 mobile medical clinics, and it has
dug over 600 wells. In addition, HAI reports that it has
provided more than 40,000 tons of food, supplies, and
charitable assistance to people in need in over 50 countries.
In tsunami-stricken Sri Lanka, for example, HAI reports it
has distributed over $200,000 in food, medical equipment, and
supplies.


4. (U) HAI, which holds Category II consultative status in
the United Nations Social and Economic Council, has carried
out joint ventures with UNICEF, the United Nations
Development Program, the United Nations Relief and Works
Agency for the Palestinian Refugees (UNRWA),and the United
Nations High Commission for Refugees. In order to work more
effectively, HAI sometimes partners with the MBR Foundation,
the UAE Red Crescent, or local NGOs in recipient countries.
In the Palestinian territories, for example, Al Nuaimi said
that HAI works only with NGOs licensed by the Palestinian
Authority.

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HAI Activities in Iraq
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5. (SBU) HAI reports it has extensive operations in Iraq --
ranging from distributing foodstuff, medicine, and school
supplies, to building, supplying, and financing hospitals,
schools, and refugee camps. In total, HAI reports it
provided $2.5 million in aid to Iraqi in 2003 and 2004.


6. (SBU) According to Al Nuaimi, HAI provides critical
developmental and relief aid to the Iraqi people that other
NGOs are unable to provide. As an example, the Iraqi
Government approached HAI in January and asked for their
assistance in aiding Iraqi Displaced Persons (IDPs) in
Fallujah. After obtaining permission from the U.S. Marine
Corps Civil-Military Operations Center (USMC/CMOC) in
Fallujah, HAI established seven primary, intermediate, and
secondary tent schools that serve 3200 students in the city.
Al Nuaimi provided Econoff with copies of documents from the
USMC/CMOC, and with the registration certificate from Iraq's
Ministry of Planning and Development Cooperation, authorizing
HAI to operate in Iraq.

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Organizational Structure, Oversight
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7. (SBU) Established in 1984, HAI is licensed by the Ajman
municipality, not through the UAE Ministry of Labor and
Social Affairs (the federal ministry that licenses charitable
organizations in the UAE). (Note: The Ministry of Labor and
Social Affairs is aware of at least some of HAI's activities
abroad. In an early April meeting, Undersecretary for Social
Affairs Mariam Al Roumi told Econoff that HAI had sought the
ministry's permission to set up operations in Iraq. In
previous meetings Al Roumi stated that charities sending
money abroad were required to go through one of the
government-approved charities -- the UAE Red Crescent, the
Sheikh Zayed Charitable Foundation, or the MBR Foundation
(ref D). According to HAI's Al Nuaimi, this regulation does
not apply to charities licensed by individual emirates. A
thorough examination of the UAE's charity regulation and
oversight regime -- and its vulnerabilities -- will be
reported septel. End note.)


8. (U) HAI has three international fundraising offices -- in
Britain, Denmark, and Australia -- and nine international
field offices -- in Chechnya, Bosnia, Kosovo, Kyrgyzstan,
Jordan, Lebanon, Yemen, Senegal, and Sudan. (Note: In 2003,
the Mauritanian government closed the HAI office in
Nouakchott because of its activities in support of terrorism
-- ref E. End note.) In addition to its headquarters in
Ajman, HAI has offices in the Emirates of Dubai, Umm Al
Quwain, and Ras al Khaimah; HAI does not have an office in
Abu Dhabi. Before initiating programs in any given country,
HAI reports that it coordinates with the UAE Embassy in each
country to identify areas where assistance is needed.


9. (U) Al Nuaimi said that HAI hires locals in each country
to staff the field offices, and most of them come to the UAE
for orientation and training at the HAI office in Ajman. He
said the headquarters exercises oversight of the field
offices' activities, noting that all money disbursed from a
field office for a project must be authorized by the HAI
headquarters, and all checks require two signatures. Al
Nuaimi showed Econoff the records the organization keeps of
its financial disbursements. In some cases, the recipient of
the aid (for example, the mother of a child sponsored through
their orphan program) is required to provide a fingerprint
and signature to acknowledge receipt of the money. Al Nuaimi
said that occasionally, fundraising offices send money
directly to the field offices, but usually HAI requires that
the money be routed through the Ajman headquarters first, and
then the headquarters disburses the funds for specific
projects. He was insistent that field offices are not
authorized to take donations or raise money themselves.


10. (U) Al Nuaimi repeated several times his concern that the
increasing number of regulations on charities and reporting
requirements for charitable contributions are causing people
to cease donating through established NGOs. Rather, they are
finding informal ways of sending money, and "this unregulated
flow of cash is difficult to monitor and track to be sure
that it goes to the appropriate destination."

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COMMENT
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11. (S) During the meeting and visit to HAI, Al Nuaimi made a
few comments to Econoff that merit further consideration:

-- Al Nuaimi took great pride in discussing HAI with a USG
official. He spent much of the time explaining how the
organization's oversight ensures that money is disbursed to
legitimate projects. However, we note there is virtually no
way to guarantee that field and fundraising officers are not
taking cash donations under the table and diverting the money
to individuals or groups with extremist connections.

-- HAI defines "orphans" as children whose fathers have died.
Thus, the lauded "orphans" program could be going, at least
in part, to families of killed -- or "martyred" -- extremists.

-- Al Nuaimi stated that HAI has 30 bank accounts in the UAE.
He said this is to avoid incurring fees when money is
transferred from one bank to another. Of interest, the HAI
consultant sitting in on the meeting tried to explain that
when Al Nuaimi said "30 accounts" he meant that HAI had one
account that it could access at "30 different branches." Al
Nuaimi was insistent, however, that he meant 30 different
accounts. (Note: Under UAE law, a charity is only allowed to
have one bank account. End note.)

-- Al Nuaimi told Econoff that Arab Bank PLC contacted HAI
last month and asked the organization to close its account
with the bank. Al Nuaimi said the bank told him that they
were closing the accounts of all of their charities because
the bank did not want to assume the risk associated with
having accounts with charities.


12. (S) HAI is a large and influential charity in the UAE,
with close ties to the ruling family in Ajman Emirate, and
its charitable activities have a strong impact in needy areas
of the world. The UAE Government is not likely to take any
action against HAI without concrete information indicating
the headquarters is complicit in terror financing activities;
however, the UAEG has expressed staunch commitment to
ensuring that its charities do not funnel money to terrorist
associated individuals or entities. If the USG has a solid
intelligence case against HAI to pass the UAEG, we believe
the UAEG will take action in order to either shut down or
rehabilitate the charity. Without recent, specific,
credible, and releasable reporting, the UAE Government is not
likely to act.

SISON