OMAN UPDATE TO SABIEX REQUEST

UNCLAS MUSCAT 000613

SIPDIS

SENSITIVE
SIPDIS

STATE FOR NEA/ARP, PM/DTCC (JSTITZIEL)

E.O. 12958: N/A
TAGS: ETTC KOMC MU BE
SUBJECT: OMAN UPDATE TO SABIEX REQUEST

REF: A. BRUSSELS 1777


B. STATE 65529

This cable contains sensitive business information. Please
protect accordingly.


1. (SBU) On June 16, Econoff met with Global Channels'
Military Equipment Manager Hamed Salim al-Hakmani to discuss
ref B request. Hakmani prefaced the conversation by noting
that the company established itself in the spare parts
business in September 2005. Its only client in the parts
division is the government's internal security forces,
encompassing the Ministry of Defense, the Royal Guard, and
the Royal Oman Police. It does not sell spare parts to
private individuals. The company occupies a floor of a villa
in the Azaiba residential/commercial district of the capital,
not far from one of Muscat's primary industrial estates. The
owner of the company is Sayyid Taimur bin Asad bin Tariq
al-Said, a royal family member whose father is the first
cousin of the ruling Sultan. Six people staff the company's
headquarters.


2. (SBU) Hakmani noted that Global Channels' relationship
with Sabiex began in June 2006, when the owner of the company
met with Sabiex officials in France. He said that he has
escorted Sabiex staff to meetings with Ministry of Defense
(MOD) officials in Oman, and that the company's production
department team met with the MOD two weeks ago. Hakmani
spoke highly of his relationship with Sabiex and commented
that he plans to continue using them for sourcing parts.


3. (SBU) Regarding the specific transaction in question,
Hakmani produced the original copy of Ministry of Defense
purchase order A2949V2058, dated September 27, 2006. The
annex to the purchase order called for the provision of 93
Vision Block 2510-00-630-0790 spare parts to be used for the
M-60 tank, not the M-48 tank. Based on that order, Global
Channels received a quote on January 17, 2007 from Sabiex's
Pascal Berthereau for the above in the amount of $19,269.80
(93 pieces at $207.20 each). Hakmani then showed a copy of
the purchase order sent to Sabiex on April 10, 2007,
confirming the price for the parts to be used on the M-60
tank.


4. (SBU) Hakmani remarked that Sabiex was not the first
company it had approached with regard to sourcing parts for
the Ministry of Defense. Hakmani mentioned that his company
had dealt with a Lance Brooks from Taylor and Associates,
located at 6201 Falls Circle, Building 1, #110, Fort
Lauderdale, FL 33319 (office number 954-776-1376, cell
954-873-7894, fax 208-728-5034),based on a Ministry
suggestion. Subsequently, the Ministry's relationship with
Taylor and Associates ended after the latter wouldn't send
four engine blocks for Oman's M-60 tanks without first
receiving payment. Global Crossings' relationship with
Taylor and Associates was also unsuccessful, as the Florida
company failed to send 20 Colt 45 pistols for the Royal Guard
after Global Crossings had paid $15,500 in advance for the
delivery.


5. (SBU) Comment: Embassy will provide septel report once in
receipt of the Ministry of Defense's official reply to our
inquiry on this purchase, but it appears that this agent is
not involved in the unauthorized transfer of ref B parts,
based on Ministry of Defense documentation provided and the
fact that the owner of the company is a member of Oman's
ruling family. (Note. The ruling family in Oman is
relatively small in comparison to others in the region. End
note.)
FONTENEAU