THE COUNTERFEIT DOLLAR AFFAIR - GBAGBO ENTOURAGE

C O N F I D E N T I A L SECTION 01 OF 02 ABIDJAN 001094

SIPDIS

SIPDIS

STATE FOR AF/W PLUMB, DS
STATE PASS TO U.S. SECRET SERVICE
AMEMBASSY PARIS FOR USSS, AFRICA WATCHERS
TREASURY FOR D. PETERS

E.O. 12958: DECL: 10/24/2017
TAGS: ECON PGOV PREL KCRM IV
SUBJECT: THE COUNTERFEIT DOLLAR AFFAIR - GBAGBO ENTOURAGE
ACCUSED, BUT EVADES PROSECUTION

REF: A. RSO ABIDJAN CLASSIFIED EMAILS TO DS

B. ABIDJAN 1042

Classified By: EconChief EMassinga, Reasons 1.4 (b,d)

This is an action request. See para 9


1. (C) Summary. On October 11, police and prosecutors made
public allegations that a counterfeit US dollar ring had been
broken up in Abidjan. Three high-level officials close to
the President were implicated by the accused owner of the
premises in which the evidence had been found. The next day,
President Gbagbo himself ordered an investigation to pursue
the matter "no matter where it ultimately leads." After a
one-day trial on October 17, however, only the owner of the
premises, as well as the premises' caretaker, were convicted
and sentenced to two years imprisonment and a fine equivalent
to USD 400,000. Embassy LE Staff (RSO) examined the evidence
and found far fewer notes than had been mentioned in
sensational press coverage of the affair. If Washington
agencies would like to examine the evidence seized by the
police and used in the conviction, Embassy Abidjan will have
to send an official request to the Government of Cote
d'Ivoire. End Summary.

The Initial Facts
=========


2. (U) On October 4, police reported responding to a call
from Mr. Ottro Zirignon in the tony Deux Plateau area about a
criminal attempt to invade his home. Police arrived on the
scene and reported chasing, but not catching, the assailants,
who had not penetrated the Zirignon home. In the police's
subsequent sweep of the adjacent area, they entered a house
still under construction being occupied by Ousmane Gnade, a
Burkinabe national who was squatting on the premises and
being paid by the house's owner to do so (a common
arrangement; Abidjan is full of semi-finished houses in its
wealthier neighborhoods). The police then reported,
according to press accounts of the episode, finding a crate
full of counterfeit US dollar notes denominated at USD 2
million, along with equipment and paper to manufacture more.
The caretaker/squatter immediately informed the police that
the home was owned by Mr. Stephane Yed.


3. (U) Yed was called in by the police the evening of
October 4th, at which time he said immediately that while the
home's deed indicates it belongs to Yed, in reality the house
belonged to Mr. Patrice Bai. Bai was summoned to the local
police headquarters where he was also questioned. Bai denied
involvement in either the production of counterfeit dollars
or ownership of the house.


4. (U) On October 12, one day after the case had become
public, President Gbagbo personally visited the police
station and the public prosecutor pursuing the affair. In an
unusual move, Gbagbo ordered the prosecutor to follow the
case to its conclusion, no matter where it led and who it
involved, even if those implicated are within the President's
entourage.

The Personalities
==========


5. (C) With the exception of Yed, the personalities involved
are not mundane figures. Mr. Ottro Zirignon is the Chairman
of the SIR (the French acronym for the National Refining
Company),a major state enterprise and also reportedly an
uncle to President Gbagbo. Both SIR and Ottro Zirignon have
been accused of involvement in funding the activities of
President Gbagbo's Front Populaire Ivorian (FPI) and its
associated groups and militias. Ottro Zirignon is also
married to Sarrata Ottro Toure, a powerhouse within the
Presidency who holds the posts of Ambassador At-Large/liaison
with the diplomatic community and deputy chief of staff
(Sarrata Ottro is also coincidentally a former Embassy
Abidjan LE Staff). Patrice Bai is the President's longtime
security chief, and had been accused of directing "death
squads" active in Abidjan after the August 2002 coup. Bai
acknowledged an association with Yed during an October 15
interview with Abidjan daily "Notre Voie," saying Yed's older
brother is a close friend.

The Legal Outcome

ABIDJAN 00001094 002 OF 002


=========


6. (C) The case immediately generated a press furor,
particularly among the opposition political parties and
independent press. Banner headlines speculated that Bai was
the mastermind behind the counterfeiting ring. Similar
headlines speculated about the role of the Ottro family, some
asking why they were not aware of or did not report
suspicions about the reportedly large Yed house when the
owner's economic resources were unclear, but construction
proceeded at a steady, rapid clip. Further inflaming public
interest in the case were headlines indicating U.S. Embassy
Abidjan was "interested in providing information on the case"
(newspapers evidently took out of context a call from LE
staff to the prosecutor simply inquiring into the status of
the case). After a one-day delay, reportedly to allow
Embassy to comment (Note: no/no official request for
assistance was ever made to the Embassy by the prosecution),
the trial went forth on October 17.


7. (SBU) At the trial, Yed abruptly recanted his claim that
Bai was the real owner of the house. Yed and Gnada, the
caretaker, were convicted and sentenced to 2 years in prison
and a 2 million CFA fine (approximately USD 400,000) for the
retention of equipment suspected in the use of
counterfeiting. Of note was the fact that Yed and Gnada were
not/not convicted of counterfeiting itself, which would have
carried the possibility of a 5 year sentence and CFA 100
million fine.

RSO Examines the Evidence
=======


8. (C) A strange coda to this affair is that subsequent to
the trial, an LE Staff from Embassy's RSO office went to
examine the allegedly counterfeit USD 100 bills. The LE
staff saw four USD 100-denominated bills, a far cry from USD
2 million. The LE staff also saw a substantial volume of
blank paper ostensibly for additional counterfeiting and a
printing machine. Ivorian authorities did not provide LE
staff or Emboffs a sample of the currency, or allow photos to
be taken of the equipment.


9. (C) Action Request: If Washington agencies are
interested in obtaining a sample bill for testing and/or
photos of the forging equipment, Embassy would need to send
an official request in the form of a diplomatic note. Please
advise if Embassy should pursue this course of action. End
request.



10. (C) Comment. The counterfeit dollar affair added to a
public perception that the Presidency is beset by scandals
reaching its inner core (the Fulton Chocolate affair (reftel
b) and the revived Andres Kieffer mystery). This perception
has been driven by the opposition as well as independent
press. Clearly, the accusations had the President somewhat
unnerved, given his unusual direct request for the
investigation. As with the furor over the Fulton affair and
other accusations of corruption leveled at the Presidency,
the issue appears to be fading in the absence of concrete
evidence going beyond what was exposed during the brief
October 17 trial. End Comment.
NESBITT