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