SUDAN: ALLEGED SANCTIONS VIOLATION

UNCLAS SECTION 01 OF 02 KHARTOUM 001570 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR AF/SPG AND EEB/ESC/ESP DEPARTMENT PASS TREASURY FOR OFAC E.O. 12958: N/A TAGS: ECON ETRD PREL SU SUBJECT: SUDAN: ALLEGED SANCTIONS VIOLATION ¶1. (SBU) Embassy has received an apparently bogus email (text in para. 6),purporting to be from the Legal Department of the Bank of Sudan, originally addressed to Diebold, Inc., charging that ATM machines manufactured by Diebold in the United States have been shipped to Sudanese commercial banks in violation of the U.S. embargo and requesting that Diebold halt such deliveries. The email was transmitted from a UK email address and contains numerous typographical and grammatical errors. Bank of Sudan denies having transmitted the message. Post is forwarding this information to Washington agencies because attachments suggest that Diebold ATMs have, in fact, been re-exported to commercial banks in Sudan, along with information on the re-exporting firms, and in case Diebold brings the message to Washington's attention. ¶2. (SBU) The message alleges that ATMs exported to Egypt and Saudi Arabia have then been trans-shipped to Sudan via the Dubai Free Zone or Jeddah. The message states that re-export to Sudan was done from Egypt by a firm called Raya Integration and from Saudi Arabia by one called Al Hamrani. The message asserts that &a big number8 of additional Diebold ATMs intended for Sudanese banks currently are under production. ¶3. (SBU) Attached to the message are several photographs, showing packing labels which include the following additional information on re-exporting firms: Raya Integration 25 Mossadek St. (no city) Egypt Motherlines Shipping LLC. P.O. Box 44806 Dubai, UAE tel 04 2868791 ¶4. (U) Email and attachments have been forwarded to the Department: AF/SPG and EEB/ESC/ESP. ¶5. (SBU) Although the message is addressed to Diebold and requests that Diebold take action to stop these activities, Post has no evidence that the alleged re-exports have been going on with the firm's knowledge. ¶6. (SBU) Begin text: Dear Sirs, As required by CFR #31 Part 538 (Office of Foreign Assets Control, U.S. Department of the Treasury) We are notifying you of a serious violation of many of those regulations by Diebold. It has come our attention in Sudan that your product (Automated Teller Machine) fabricated by your company in Ohio are being sold and distributed in Sudan by a third company through Saudi Arabia (Al Hamrani) and Egypt (Raya Internation (sic)). As for our information, those products are supplied from a third country Egypt and Saudi Arabia to Dubai Free zone or to Jeddah, then documents and exchanges and sent to by air to Sudan. We have enough information and supported documents proving that those machines are supplied to several banks (Sudanese French bank, Al Baraka Bank, Faisal Bank, Farmer Bank) and recent information shows that a big number of machines will be supplied for some other local banks and are under production. We ask you to stop immediately your action in this country. Furthermore we will forward to the local U.S. embassy full details and information by post and by email about the persons and companies involved in this illegal action in addition to Diebold, Post office Box 3077, Dep. 9-8-16, North Canton OH 442720(sic)-8077 which will affect the image of the company specially that spare parts and support are not available ( therefore they might put it on a black list with the direct Manager in charge on Distributor Diebold in Africa, Europe, Middle East and Africa called Piet Cooreman. We do hope to take this email and it is contain as top priority and to investigate with concerned people and stop immediately this illegal action. ¶M. Ousman Mahgoub Bank of Sudan Legal Department End text. KHARTOUM 00001570 002 OF 002 ¶7. (SBU) Comment: With the Sudanese businessmen we have talked to, sanctions are among the first topic they raise. We will watch to see if this poison-pen email is a trend as Sanctions continue to affect Sudan's economy. FERNANDEZ