BLUE LANTERN LEVEL 3: PRE-LICENSE END USE CHECK ON APPLICATION 05-957672

UNCLAS PANAMA 001526 SIPDIS DEPARTMENT FOR PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: KOMC ETTC PM LABOR HUMAN RIGHTSPOLMIL SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END USE CHECK ON APPLICATION 05-957672 REF: STATE 117172 ¶1. (U) Per reftel, Embassy confirmed the bona fides of Armunex with Panama's corporate registry. Armunex is an abbreviation for Armas, Municiones, and Explosivos and is part of the company Grupo Seguridad Especial (GSE). GSE also operates a security company (Vigilancia Especial) with 250 security agents and a security alarm monitoring service (Movialarm). Pablo Aued, Legal Advisor at the Public Safety Directorate in Panama's Ministry of Government and Justice (MOGJ) presented PolOff with resolution 08/DISP/05, dated January 8, 2005, approving the purchase of the 100 Taurus revolvers (reftel). Aued also vouched for the owners of Armunex, describing them as "serious people." Edgardo Orillac is Armunex's president. ¶2. (U) On July 15, 2005, EmbOffs conducted a site visit to Armunex and met with General Director, Eduardo Diaz. Diaz told EmbOffs that the business has existed for 12 years. He stated that the weapons will be used by security agents who work for Vigilancia Especial. Additionally, Armunex sells weapons to other security companies and private individuals. Diaz said he had no weapons samples to show because Armunex's inventory was depleted. For that reason, Armunex is ordering guns from the U.S. for the first time in three years. Diaz described his customers as "high end businesses" and listed many well-known Panamanian companies as his clients. He estimates that 30 of the weapons in the present order will be kept by Armunex for use by Vigilancia Especial's security agents and the remaining 70 will be sold to other security agencies and private individuals. Diaz showed us the files of recent weapon sales by Armunex and also provided a tour of his facility where classroom training for security guards was on-going. A security alarm monitoring center also operates on the site. ¶3. (U) By all appearances, Armunex is a legitimate well-run business. WATT