Identifier
Created
Classification
Origin
08HARARE672
2008-08-08 11:34:00
CONFIDENTIAL
Embassy Harare
Cable title:
ZIMBABWE SEARCHING FOR ALTERNATIVE SUPPLIER OF
VZCZCXRO6413 PP RUEHDU RUEHMR RUEHRN DE RUEHSB #0672 2211134 ZNY CCCCC ZZH P 081134Z AUG 08 FM AMEMBASSY HARARE TO RUEHC/SECSTATE WASHDC PRIORITY 3269 INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE RUEHUJA/AMEMBASSY ABUJA 2038 RUEHAR/AMEMBASSY ACCRA 2204 RUEHDS/AMEMBASSY ADDIS ABABA 2323 RUEHRL/AMEMBASSY BERLIN 0855 RUEHSW/AMEMBASSY BERN 0016 RUEHBU/AMEMBASSY BUENOS AIRES 0001 RUEHBY/AMEMBASSY CANBERRA 1600 RUEHDK/AMEMBASSY DAKAR 1958 RUEHJA/AMEMBASSY JAKARTA 0041 RUEHKM/AMEMBASSY KAMPALA 2379 RUEHNR/AMEMBASSY NAIROBI 4810 RUEHVI/AMEMBASSY VIENNA 0027 RUEAIIA/CIA WASHDC RUEHGV/USMISSION GENEVA 1472 RHEHAAA/NSC WASHDC RHMFISS/JOINT STAFF WASHDC RUEHC/DEPT OF LABOR WASHDC RUEATRS/DEPT OF TREASURY WASHDC RHEFDIA/DIA WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK RUZEHAA/CDR USEUCOM INTEL VAIHINGEN GE
C O N F I D E N T I A L HARARE 000672
SIPDIS
AF/S FOR G. GARLAND
AF/EPS FOR ANN BREITER
NSC FOR SENIOR AFRICA DIRECTOR B. PITTMAN
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN
TREASURY FOR J. RALYEA AND T.RAND
COMMERCE FOR BECKY ERKUL
ADDIS ABABA FOR USAU
ADDIS ABABA FOR ACSS
E.O. 12958: DECL: 08/08/2018
TAGS: PGOV ECON ASEC ZI
SUBJECT: ZIMBABWE SEARCHING FOR ALTERNATIVE SUPPLIER OF
BANKNOTE PAPER
REF: A. HARARE 0653
B. VIENNA 01068
C. HARARE 0162
Classified By: Ambassador James D. McGee for reason 1.4 (d)
C O N F I D E N T I A L HARARE 000672
SIPDIS
AF/S FOR G. GARLAND
AF/EPS FOR ANN BREITER
NSC FOR SENIOR AFRICA DIRECTOR B. PITTMAN
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN
TREASURY FOR J. RALYEA AND T.RAND
COMMERCE FOR BECKY ERKUL
ADDIS ABABA FOR USAU
ADDIS ABABA FOR ACSS
E.O. 12958: DECL: 08/08/2018
TAGS: PGOV ECON ASEC ZI
SUBJECT: ZIMBABWE SEARCHING FOR ALTERNATIVE SUPPLIER OF
BANKNOTE PAPER
REF: A. HARARE 0653
B. VIENNA 01068
C. HARARE 0162
Classified By: Ambassador James D. McGee for reason 1.4 (d)
1. (C) Banker James Mushore, who tipped us off in February
about the planned media disclosure of German banknote printer
Giesecke & Devrient's (G&D) business with Zimbabwe (Ref C),
updated emboffs on July 31 on the Reserve Bank of Zimbabwe's
(RBZ) pursuit of alternative suppliers of secure paper. He
said that Alan Marimbe, head of currency management at the
RBZ, and Eliah Mutowo, General Manager of Fidelity Printers,
were communicating with potential suppliers in Indonesia,
Argentina and Zimbabwe.
2. (C) According to Mushore's unnamed contact at Fidelity
Printers, Pura Group in Indonesia had offered to deliver
banknote paper within 5-6 weeks of signing a contract.
Mushore said an unnamed Argentine had visited Harare and
promised the RBZ that an Argentine company could deliver
double the quantity of banknotes that G&D had delivered.
Mushore said Marimbe and Mutowo had recently traveled to
Argentina to investigate the offer but had been denied entry
despite the contact's assurances of visa issuance upon
arrival. Locally, Mushore said that the RBZ was trying to
launch a banknote printing operation at Kadoma Paper Mills
but it was "not working out." Mushore also said the RBZ had
approached local checkbook printer Celsys about printing
banknotes.
3. (C) Mushore said that the Swiss company SICPA supplied
Fidelity Printers with secure ink, and that Fidelity had
abundant ink in stock. Nevertheless, SICPA was allegedly
considering setting up an associate company in South Africa
to bypass any sales prohibitions that could arise. Mushore
added that Fidelity had launched a witch-hunt to trace the
source of information leaked to the media about its use of
banknote design software from the Austrian company JURA JSP
(Ref B).
--------------
COMMENT
--------------
4. (C) Without its regular source of secure banknote paper,
and having issued revalued currency one week ago (Ref A),the
GOZ's ability to locate an alternate secure paper supplier in
Zimbabwe's hyperinflationary environment is critical. END
COMMENT.
MCGEE
SIPDIS
AF/S FOR G. GARLAND
AF/EPS FOR ANN BREITER
NSC FOR SENIOR AFRICA DIRECTOR B. PITTMAN
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN
TREASURY FOR J. RALYEA AND T.RAND
COMMERCE FOR BECKY ERKUL
ADDIS ABABA FOR USAU
ADDIS ABABA FOR ACSS
E.O. 12958: DECL: 08/08/2018
TAGS: PGOV ECON ASEC ZI
SUBJECT: ZIMBABWE SEARCHING FOR ALTERNATIVE SUPPLIER OF
BANKNOTE PAPER
REF: A. HARARE 0653
B. VIENNA 01068
C. HARARE 0162
Classified By: Ambassador James D. McGee for reason 1.4 (d)
1. (C) Banker James Mushore, who tipped us off in February
about the planned media disclosure of German banknote printer
Giesecke & Devrient's (G&D) business with Zimbabwe (Ref C),
updated emboffs on July 31 on the Reserve Bank of Zimbabwe's
(RBZ) pursuit of alternative suppliers of secure paper. He
said that Alan Marimbe, head of currency management at the
RBZ, and Eliah Mutowo, General Manager of Fidelity Printers,
were communicating with potential suppliers in Indonesia,
Argentina and Zimbabwe.
2. (C) According to Mushore's unnamed contact at Fidelity
Printers, Pura Group in Indonesia had offered to deliver
banknote paper within 5-6 weeks of signing a contract.
Mushore said an unnamed Argentine had visited Harare and
promised the RBZ that an Argentine company could deliver
double the quantity of banknotes that G&D had delivered.
Mushore said Marimbe and Mutowo had recently traveled to
Argentina to investigate the offer but had been denied entry
despite the contact's assurances of visa issuance upon
arrival. Locally, Mushore said that the RBZ was trying to
launch a banknote printing operation at Kadoma Paper Mills
but it was "not working out." Mushore also said the RBZ had
approached local checkbook printer Celsys about printing
banknotes.
3. (C) Mushore said that the Swiss company SICPA supplied
Fidelity Printers with secure ink, and that Fidelity had
abundant ink in stock. Nevertheless, SICPA was allegedly
considering setting up an associate company in South Africa
to bypass any sales prohibitions that could arise. Mushore
added that Fidelity had launched a witch-hunt to trace the
source of information leaked to the media about its use of
banknote design software from the Austrian company JURA JSP
(Ref B).
--------------
COMMENT
--------------
4. (C) Without its regular source of secure banknote paper,
and having issued revalued currency one week ago (Ref A),the
GOZ's ability to locate an alternate secure paper supplier in
Zimbabwe's hyperinflationary environment is critical. END
COMMENT.
MCGEE