SADR CITY UPDATE: BOSS SHAMA,S RETURN

S E C R E T SECTION 01 OF 02 BAGHDAD 002993 SIPDIS E.O. 12958: DECL: 09/16/2018 TAGS: PGOV PTER PINR IZ SUBJECT: SADR CITY UPDATE: BOSS SHAMA,S RETURN Classified By: Baghdad EPRT-3 Leader Theodore Andrews for reasons 1.4 ( b) and (d). This is an Baghdad EPRT-3 reporting cable. ¶1. (S) SUMMARY: Hassan Shama, the Sadr City politician wounded in the June 24 blast that killed several EPRT members and U.S. military personnel, returned to work on August 12 and, after a small public wrangle, resumed his role as District Council (DC) chairman. Since then, Shama has moved aggressively to consolidate his authority, notably by securing the ouster of several DC members, by asserting the alleged legal right of Sadr City Neighborhood Councils (NC) to set fuel prices, and by gaining the leadership of the district,s tribal sheikhs. To ensure that Shama does not become our sole conduit into Sadr City, the EPRT is moving to balance engagements with him by strengthening links with others on the council and in the community. END SUMMARY. -------------- Background ) the Birth of a Boss -------------- ¶2. (C) Hassan Shama is originally from Midalawi, Diyala Province. He is a Kurdish Shia and, as such, certainly did not enjoy easy entree into the ranks of Sadr City,s elite. Prior to his appointment to the DC, Mr. Shama was a moderately successful internet cafe owner without any formal education beyond high school. According to several founding DC members, Hassan Shama did have one advantage that helped him climb the ranks of power: his perceived positive relationship with coalition forces (CF) since 2003. He was, in those days, one of the few Sadr City residents willing to engage with CF and USG. ¶3. (C) Shama has not been reluctant to use the threat of violence to gain increased power and wealth. Several members of the District Council claim, for example, that he in effect "sold" several computers provided last year by the EPRT to the DC members for whom they were destined. Similarly, when a group of DC members went to the U.S. on an IV trip, Shama is said to have demanded ) and received ) a fee for securing passports for them. Albeit without any evidence, some sources in Sadr City allege Shama has used his connections with the CF to secure unspecified contracts for friends and procure political support from other DC members. It is unclear how close Mr. Shama is to JAM, but most observers in Sadr City believe he (like most other prominent leaders) has some sort of link, otherwise he would not have been able to survive for so long. -------------- Consolidating Political Power -------------- ¶4. (C) Following the June 24 explosion, Shama retreated from the limelight, but still held court from his bed at the U.S. military hospital in the IZ. He began making noises about a return to the political world in late July. He made clear then that Ali Sueidi, who became acting chairman in late June, should plan on giving up the position, preferably without making a fuss. This demand did not pass without protest from Suedi,s supporters. They refused to give way without a vote, which the DC members agreed to hold at a special session on August 10. The special session resulted in a 19-16 victory for Shama, an occurrence that several council members attributed both to Shama,s political muscle and to genuine sympathy for a man who had survived an assassination attempt. Whatever, the reason, the defeat left Sueidi out in the cold. Suedi now holds the position of DC member without portfolio. ¶5. (S) Supporters of Aly Sueidi remain under siege from Hassan Shama. On September 2 at the weekly DC meeting, Hassan Shama ordered the dismissal of the Energy (Fuel) Committee chairman, Ali Shabib Aweed and his deputy after a dispute over fuel distribution schemes. (They retained their seats on the Council.) The dispute began when Mr. Shama suggested that the DC devolve control over local fuel distribution to NC chairmen. Mr. Aweed and other Aly Sueidi supporters argued that the DC should retain control over fuel distribution, a scenario that would consolidate fuel purchases at a reduced cost and minimize the potential for fuel theft. Shama's plan to empower NC chairmen with the authority to set prices and control distribution would place these community leaders in his debt, in the process shifting power away from the DC. To justify the change, Shama's supporters claimed that the existing fuel committee chair was involved in corrupt practices. True or not, the Aweed and his deputy did not hang around to dispute the matter. When Shama suggested that they go, they got up and left, freeing two spots for Shama to fill with loyalists. -------------- -------------- Attempts at Empire Building with the Sheikhs and the USG -------------- -------------- ¶6. (S) Shama has not neglected other levers of power in Sadr City. On September 1, Shama convened a meeting of prominent sheikhs, a group that included both the "fake" sheikhs appointed by Saddam Hussein and the legitimate ones. Intended to establish a new Sheikh's council for the BAGHDAD 00002993 002 OF 002 district, Shama served as chair. The result not surprisingly was favorable to Shama's interests ) a new group of local power-brokers loyal to Hassan Shama. Shama has made noises that this new body should absorb an existing Sheikh's council supported by CF and the Iraqi Army. ¶7. (S) Shama is interested in involving the CF in his bid to crowd out other powers in the area. Drawing on local frustration about a lack of influence with the process of designing and implementing development projects, Shama has approached USG personnel at JSS-Sadr City with the idea of forming a new working group which would review and approve all USG essential service projects in Sadr City. This working group would include Shama, Abdulmajeed Hameed Hassan (Administration Committee Chair) and CF representatives. According to Abdulmajeed, this working group would exclude the Beladiyahs. If constructed as Mr. Shama has outlined, this working group could direct all projects in Sadr City, providing another funnel for resources to Shama supporters. Joint Security Station (JSS) -Sadr is not supportive of this working group concept. CF have not formally replied. -------------- Future USG Engagements with Hassan Shama -------------- ¶8. (S) Comment: Shama will not win any awards as a Jeffersonian democrat. At the same time, he is not going away anytime soon. He will be a force in the district, and able to influence any number of activities or forces of importance to the USG. Accordingly, barring the development of significant information against Shama's already stained reputation, we have little choice but to work with him. This inevitably will bolster his position. To counter this trend, the EPRT will work to ensure that Shama does not become the sole conduit for USG influence in Sadr City. We will continue to work with alternate centers of political gravity within the DC, a group that includes Ali Sueidi and potentially Nadam Naeem, one of only two women on the Sadr City DC. Our efforts will focus also on strengthening the district's nascent civil society ) sheikhs, business leaders, and professionals and on fostering a more independent media. End Comment. CROCKER