DRC SANCTIONS: COMMITTEE CHAIR CALLS FOR MORE

C O N F I D E N T I A L USUN NEW YORK 001228

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/16/2011
TAGS: PREL CG EFIN ETTC PGOV UNSC
SUBJECT: DRC SANCTIONS: COMMITTEE CHAIR CALLS FOR MORE
NAMES


Classified By: Political Minister Counselor William Brencick,
for Reasons 1.4 (B and D).



1. (C) DRC Sanctions Committee Chairman, Peruvian PermRep de
Rivero, recently called on members of the Committee to submit
new names of individuals and entities for sanctions under
resolution 1596. Both France and the UK would like to
respond to the Chairman,s call and submit new names for
listing. However, they would both prefer to work with the
United States to avoid a U.S. hold, in order to preclude the
inadvertent suggestion that the U.S. does not support the
sanctions regime. The French and the British suggest that
action before the July 30 elections would contribute to the
stability of the DRC. Therefore, the UK Mission prepared a
paper, which outlines British thinking on how to proceed
(para 2). The French have provided a list of possible names
to sanction (para 3),which was also sent via e-mail to
IO/PSC on June 7.


2. (C) Begin text of UK paper:

Listings for sanctions under UNSCR 1596: UK views
-------------- --------------

Individuals/entities we are in favor of listing:
-------------- --

UCI (Ugandan company)
--------------

We believe the Group of Experts, claim that UCI has brought
from gold traders in the DRC who have financed illegal armed
groups in the DRC is well-founded. This was well-documented
in the Human Rights Watch (HRW) report &The Curse of Gold8
(2005),as well as in the Groups, own reports.

We consider this to constitute &provision of assistance8 to
illegal armed groups, in breach of the arms embargo as per
OP18 of SCR 1493 and OP1 of SCR 1596. In reaching this view,
we take into consideration the fact that UCI is aware of the
identities of its immediate suppliers, and cannot be unaware
(following the Group,s direct contact with the company, as
well as its reports) of the allegations against those
suppliers.

UCI continues to trade, and has to our knowledge given no
indication that it has altered it supplier base following the
criticism of the Group. (This is in contrast to Argor and
Hussar, as noted below.) Instead the company has denied the
accusations, e.g. in writing to Hussar on 3 June 05 that &we
do not deal with and neither have we dealt with any persons
involved in the arms trade or any persons that has been
accused with human rights abuse8 despite admitting to HRW
that Dr. Kisoni was a key supplier.

In these circumstances we support the Group,s recommendation
to use sanctions as a coercive tool to prevent further
violations of the arms embargo.

Machanga (Kampala, Uganda - gold trading company)
-------------- --------------

We propose listing Machanga for the same reasons as UCI.
Machanga is documented as having bought from Ozia Mazio (now
himself listed) in the Group of Experts report S/2005/30
(paras 116-126) and from Omar Oria in the HRW &Curse of
Gold8 report. Both of these individuals, as noted in the
reports, are collaborators and financial backers of
Commandant Jerome and his FAPC illegal armed group.

Listing Machanga would not only be consistent with listing
UCI; it would increase the effectiveness of the measures.

Dr. Kisoni Kambale (aka Dr. Kisoni ) of Butembo, DRC (DRC
national of Nande origin) Gold trader, owner of Butembo
Airlines (BAL) and owner of Congocom gold trading house in
Butembo. Phone 243 (0) 99 98383784
-------------- --------------

Dr. Kisoni is referred to in the Group,s confidential annex
as &an economic proxy of the FNI8, and the Group documented
his role in militia-financing gold trading (buying from the
FNI and selling to UCI) in their report S/2005/30 paras
127-130. This is consistent with our knowledge of the
situation. HRW,s &Curse of Gold8 report supports these
allegations, and also refers to the use of Kisoni,s
aeroplanes to fly in military supplies to the FNI.

It is our view that Kisoni,s support of the FNI constitutes
&provision of assistance8 to illegal armed groups, in
breach of the arms embargo as per OP18 of SCR 1493 and OP1 of
SCR 1596. We believe Kisoni poses a continuing risk in terms
of his ability and willingness to finance armed groups in
north-east DRC, and therefore propose listing him for
targeted sanctions.

We also note that the Group has proposed listing UCI (and by
extension Hussar and Argor) on the basis that UCI bought from
traders such as Dr. Kisoni (see confidential annex, and
S/2005/30) who were in close co-operation with armed groups.
It therefore seems highly inconsistent to list UCI without
listing those traders ) such as Kisoni ) who directly
assisted the armed groups.


Omar Oria of Ariwara (Ugandan citizen, though born in DRC)
Gold Trader. Married to Matoni Omar (Congolese) Phone 256 077
99 4100 and 256 077 36 84 95 and 256 077 33 95 75
-------------- --------------

Omar Oria is documented in the HRW &Curse of Gold8 report
as collaborating with and financing Commandant Jerome,s
illegal FAPC militia, particularly through sales of gold to
Machanga. We therefore propose listing him for the same
reasons as described above for Dr. Kisoni.

Individual/entities are against listing:
--------------

Hussar/Hussar Services (British companies)
--------------

Hussar is proposed for listing by the Group of Experts on the
basis of its having bought gold from UCI. Hussar stopped
trading with UCI in May 2005 (a fact that the Group accepts).
Trade in gold with Ugandan companies was only a small part
of Hussar,s business, and has cost the company enormous
damage to its reputation and its ability to continue as a
going concern. If the company does survive this damage and
continues to operate, we judge there is virtually zero risk
of it going back to trading with UCI or other companies which
may be violating the DRC arms embargo. Applying sanctions
could therefore only have a punitive, not a coercive, effect.

We oppose applying sanctions for punitive purposes as a
matter of policy, and because of the higher level of evidence
required (i.e. &beyond a reasonable doubt8 that a breach of
the law has occurred). We do not consider it &beyond
reasonable doubt8 that Hussar has violated the embargo; if
we did, the company would already be subject to domestic
legal proceedings.

We also take into account that:

--a) Hussar can reasonable claim to have been unaware that
its activities could be considered to be in breach of the
arms embargo. The company was buying from a licensed Ugandan
exporter; in the absence of any sanctions against Uganda it
would have been difficult for the company to know that buying
gold from that country could constitute a breach of the arms
embargo on the DRC. Private companies are highly unlikely to
read reports to Sanctions Committees of Experts Groups, where
such linkages are made. As mentioned above, when the company
became aware that its activities might be considered to be in
breach of the embargo, it stopped them.

--b) Hussar has co-operated fully with the Group of Experts,
as evidenced by the following email from Kathi Austin
referring to the assistance of the company and of Jonathan
Graff, Hussar,s consultant.

&From: Kathiaustin-cs.com Sent: 08 June 2005 18:14
To: Julia-eaton-hussarbullion.com
Subject: ---SPAM---Re: meeting 6th June 2005
Dear Julia,
Thank you greatly for all of your assistance. These details
are helpful. I am regular contact with Jonathan and he has
been exceedingly cooperative at this stage.

Please note that the questions that we asked during the visit
to your office were representative of the type of questions
that we always ask during such missions. You should not take
the object of any questions to necessarily mean that it is a
target of suspicion.

Best regards, Kathi
Kathi Austin Arms Trafficking Expert UN Group of Experts on
the DRC Pursuant to UNSCR 1596 (2005) US Cell: 1 202 250 9595
email: kathiaustin-cs.com8

Argor-Hereaus (Swiss company)
--------------

We oppose listing Argor for al the same reasons as described
above in relation to Hussar.

Modeste &Mode8 Makabuza Ngoga
--------------

We do not believe there is currently sufficient evidence to
support listing Makabuza. We do not dispute that Makabuza
may have collaborated with Nkunda during the first half of
2004, but at that point Nkunda was not leading his own armed
group, and there was no warrant for his arrest. Makabuza
would have had little reason, and possibly not much option,
not to collaborate with him to some extent.

We do not consider that the fact that Makabuza never asked
for help from MONUC or FARDC to be indicative of his guilt.
MONUC do not habitually provide support to private
businesses, and dealing with FARDC would carry as many risks
as dealing with any illegal armed group

We would consider provision of assistance to &men from
Nkunda,s group8 in December 05 to be in breach of the
embargo to which targeted sanctions might be an appropriate
response. But the Group of Experts quotes only one source )
Colonel Kasikila ) to support this allegation. We believe
Kasikila is a fundamentally unreliable source, particularly
since he is likely to view Makabuza as a rival in the mining
business. We have not been able to confirm this allegation
from any other sources ourselves, but would be interested to
learn if other states have.

End text of UK Paper.


3. (SBU) Begin text of French paper:

Nota: La Liste ci-apres reprend les recommandations du
groupe d,experts contenues dans l,annexe confidentielle a
son rapport (en date du 18 avril 2006).


1. Personne physique
--------------

Nom familial: Makabuza
Nom personnel: Ngoga
Alias: Mode
Adresse, elements d,identification:
Station Jambo Safari SPRL
B.P. 231 Goma
Republique democratique du Congo
Motifs: Administrateur delegue de l,entreprise Somikivu.
Il possedait a ce titre la mine de Lueshe, lorsque celle-ci a
servi de base a des groupes armes illegaux, notamment durant
l,ete 2004, ceux du (general) Laurent Nkunda et du (colonel
Jules Mutebutsi),sanctionnes par le comte le 1 novembre

2005. M. Makabuza, en apportant une assistance a ces groupes
armes, a agi en violation des dispositions de l,article 20
de la resolution 1493 (2003).


2. Personnes morales
--------------

Raison sociale: Uganda Commercial Impex Ltd.
Adresse, elements d,identification:
Kajoka street
Kisemente, Kampala
Ouganda
Motifs: Societe exportatrice d,or se fournissant
regulierement en minerai aupres de negociants etablis en
Ituri, lesquels entretiennent des relations privilegiees avec
les chefs de guerre operant dans cette region. Uganda
Commercial Impex, en apportant une assistance a ces groupes
armes, fut-elle indirecte, a agi en violation des
dispositions de l,article 20 de la resolution 1493.

Raison sociale: Hussar Services
Adresse, elements d,identification:
Suite B, Bridge House
181 Queen Victoria street
Londres
EC4V 4DD
Royaume-Uni
Motifs: Un des principaux importateurs d,or congolais via
Kampala, dont le commerce alimente des groupes armes operant
dans l,Ituri. Les societes Hussar, en apportant une
assistance au financement de tels groupes armes, ont agi en
violation des dispositions de l,article 20 de la resolution
1493, confirmees et completees par l,article ler de la
resolution 1596 (2005).

Raison sociale: Hussar Ltd.
Adresse, elements d,identification:
Seaton House
P.O. Box No. 437
19 Seaton place
St. Helier
Jersey
JE4 OZE
Royaume-Uni
Motifs: Un des principaux importateurs d,or congolais via
Kampala, dont le commerce alimente des groupes armes operant
dans l,Ituri. Les societes Hussar, en apportant une
assistance au financement de tels groupes armes, ont agi en
violation des dispositions de l,article 20 de la resolution
1493, confirmees et completees par l,article ler de la
resolution 1596 (2005).

End text of French paper.

BOLTON