UN FOCAL POINT DELISTING REQUEST FOR KHALAF

UNCLAS STATE 116615

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN PREL PTER UNSC
SUBJECT: UN FOCAL POINT DELISTING REQUEST FOR KHALAF
AL-DULIMI


1. (U) This is an action request. Please see paragraph 5.

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SUMMARY AND OBJECTIVES
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2. (SBU) In June 2008, lawyers for Khalaf Al-Dulimi
petitioned on behalf of Al-Dulimi (an Iraqi citizen resident
in Jordan) and his company Montana Management Inc. (a company
incorporated in Panama for which Al-Dulimi is the sole
shareholder) for delisting from sanctions imposed pursuant to
UNSC 1483 (which obligates Member States to impose an asset
freeze and travel ban on individuals and entities linked to
the former Saddam Hussein regime in Iraq). In their
delisting petition, the petitioners "request that the
Sanctions Committee... disclose to them, directly or through
the Focal Point, the information and evidence having led to
the petitioners' designation," and that the petitioners "be
given the ability to determine themselves and complement
their delisting request on this information and evidence."
(Note: Al-Dulimi denies he was ever a member of the Baath
Party, and further denies he was "a director of investments
for the Iraqi Intelligence Service" under Saddam Hussein,
which Al-Dulimi's lawyers point out is the only allegation
publicly levied against Al-Dulimi (and derivatively Montana
Management Inc., which was designated because it is "owned
and controlled by" Al-Dulimi) in support of his listing under
UNSCR 1483.) We would like to be in a position to provide
that information to the petitioners, either through the UNSC
1518 Committee and/or UN Focal Point, or perhaps ask
Government of Iraq (GOI) officials -- who are best placed to
provide additional details -- to share it directly with the
petitioners.


3. (SBU) The Governments of Iraq (country of citizenship) and
the United Kingdom (which co-sponsored the USG-proposed
listing under UNSCR 1483) have informed the UN Focal Point of
their opposition to the delisting petition for Al-Dulimi and
Montana Management, Inc. Nonetheless, the USG has additional
questions regarding Al-Dulimi we would like clarified by GOI
officials, in particular. We are committed to upholding
measures to ensure transparency and fairness in procedures
across UN sanctions regimes. We are committed to ensuring
that individuals/entities subject to UN sanctions are made
aware of the reasons for listing, and as a result can fully
avail themselves of the procedures in place to petition for
delisting.

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BACKGROUND
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4. (U) Al-Dulimi's lawyers have filed suit in Switzerland to
stop imposition of UN mandated sanctions. They have filed a
separate suit before the European Court of Human Rights
(ECHR) on the grounds that Al-Dulimi and Montana Management
were denied due process guarantees under article 6 of the
ECHR when the Swiss Government froze their assets without the
plaintiffs having been informed of the reasons for the
imposition of sanctions. Al-Dulimi's lawyers anticipate the
ECHR will rule in favor of the plaintiffs, particularly in
the wake of a September 2008 decision of the European Court
of Justice (ECJ) involving plaintiffs whose assets were also
frozen pursuant to sanctions imposed by the UN Security
Council. In that case, the ECJ ruled that the European
Council regulation implementing the asset freeze requirements
violates procedural and property rights enshrined in European
Community law. The key procedural defect identified by the
ECJ was a failure to provide the designated parties with
adequate notice of the reasons for listing, which is what
Al-Dulimi's lawyers have requested from the 1518 Committee.

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ACTION REQUEST
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5. (SBU) Embassy Baghdad, as well as USUN, should pose the
following questions to the appropriate level GOI
interlocutors familiar with the Al-Dulimi case and UNSC 1518
(Iraq) Sanctions:

Can the Iraqis provide further information/documentation
about what Al-Dulimi did for the Saddam Hussein regime? For
example, the Iraqi submission says that "it is an undisputed
fact that (Al-Dulimi) was a director of investments for the
Iraqi Intelligence Service and one of the senior officials of
the former Iraqi regime and a high ranking Baath Party
official." The Iraq statement also says that "It is a matter
of public information and hereby confirmed by the Republic of
Iraq that (Al-Dulimi) was acting on behalf of the previous
Iraqi regime as a front man concealing misappropriated Iraqi
assets in shell companies, usually managed through trustees."


Can the Iraqis provide further information on the assets held
by Al-Dulimi and Montana Management? For example, Iraqi
officials -- in their denial of delisting for Dulimi and
Montana Management -- have said that "it is also publicly
known that (Al-Dulimi) was responsible for the creation of
offshore holdings, and shell companies for the purposes of
concealing the misappropriated assets and embezzled money of
the Iraqi people. It is beyond doubt that the shares of
Lagardere Group held by Montana of which (Al-Dulimi) is sole
director and sole shareholder are Iraqi assets." Can the
Iraqis provide supporting evidence or other documentation?

Can Iraq provide further information on how Montana was used
in support of the regime and/or the current activities of
Al-Dulimi or Montana Management Inc.?

Do the Iraqis have any supporting evidence or documentation
relating to their allegation that Dulimi is a "perpetrator
and financier or acts of terrorism" in Iraq? This is not
directly relevant to designation under UNSCR 1483, but is
information of interest to the USG.

What, if any, of the above information would the GOI be
willing to provide to the delisting petitioners directly, or
via the UN Focal Point?

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REPORTING DEADLINE AND POINT OF CONTACT
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6. (U) Embassy Baghdad and USUN should report as soon as
possible results of their engagement with GOI officials.


7. (U) Questions may be directed to IO/PSC (Erin Crowe,
202-736-7847).
RICE