Identifier
Created
Classification
Origin
08TRIPOLI391
2008-05-14 15:50:00
CONFIDENTIAL
Embassy Tripoli
Cable title:  

SIBLING RIVALRY EMERGING OVER RIGHT TO "FACILITATE" FOREIGN COMPANIES' INVOLVEMENT IN LIBYA?

Tags:  ECON ETRD LY MASS PGOV PINR PREL 
pdf how-to read a cable
VZCZCXRO4377
OO RUEHTRO
DE RUEHTRO #0391 1351550
ZNY CCCCC ZZH
O P 141550Z MAY 08
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3438
INFO RUEHTU/AMEMBASSY TUNIS PRIORITY 0506
RUEHAS/AMEMBASSY ALGIERS PRIORITY 0675
RUEHRB/AMEMBASSY RABAT PRIORITY 0623
RUEHEG/AMEMBASSY CAIRO PRIORITY 1094
RUEHFR/AMEMBASSY PARIS PRIORITY 0473
RUEHLO/AMEMBASSY LONDON PRIORITY 0795
RUEAIIA/CIA WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHTRO/AMEMBASSY TRIPOLI 3942
C O N F I D E N T I A L TRIPOLI 000391 

SIPDIS

DEPT FOR NEA/MAG AND INR (SWEET, HOFSTETTER)

E.O. 12958: DECL: 5/13/2018
TAGS: PGOV, PREL, ECON, ETRD, PINR, MASS, LY
SUBJECT: SIBLING RIVALRY EMERGING OVER RIGHT TO "FACILITATE" FOREIGN
COMPANIES' INVOLVEMENT IN LIBYA?

CLASSIFIED BY: Chris Stevens, CDA, U.S. Embassy - Tripoli, Dept
of State.
REASON: 1.4 (b),(d)
C O N F I D E N T I A L TRIPOLI 000391

SIPDIS

DEPT FOR NEA/MAG AND INR (SWEET, HOFSTETTER)

E.O. 12958: DECL: 5/13/2018
TAGS: PGOV, PREL, ECON, ETRD, PINR, MASS, LY
SUBJECT: SIBLING RIVALRY EMERGING OVER RIGHT TO "FACILITATE" FOREIGN
COMPANIES' INVOLVEMENT IN LIBYA?

CLASSIFIED BY: Chris Stevens, CDA, U.S. Embassy - Tripoli, Dept
of State.
REASON: 1.4 (b),(d)
1. (C) At a reception for a nascent U.S. business group on May
6, PricewaterhouseCoopers (PWC) Senior Partner Mohamed Ghattour
(strictly protect) told P/E Chief that National Security Adviser
Muatassim al-Qadhafi (son of Colonel Muammar al-Qadhafi)
appeared to be moving to play a larger role in commercial
contracts with foreign companies, a bailiwick largely reserved
for his brother, Saif al-Islam al-Qadhafi, until now. Ghattour
said PWC's Dubai-based Senior Partner for the Middle East paid a
quiet visit in early April to Tripoli, where he met for nearly
four hours with Muatassim. The purpose of the meeting, which
was orchestrated through Ghattour at Muatassim's request, was to
review the merits of specific multi-national companies that the
Government of Libya (GOL) and National Security Council (NSC)
were considering for various projects. Muatassim requested that
PWC rank-order companies (one through three for the top tier,
plus an additional tranche of five rank-ordered alternates) for
each project.

2. (C) Ghattour was reluctant to divulge specifics about the
companies under consideration or the putative projects, but did
say that a number of U.S. companies were included on the lists.
He added that while some of the projects appeared to be
defense-related, the majority appeared to be strictly commercial
in nature. He expressed surprise at the latter, noting that he
had expected most of the discussion to center on defense and
security-related projects, which seemed to fall more naturally
within what he understood to be Muatassim's brief as National
Security Adviser. Muatassim stressed to Ghattour and his
principal that they should not share widely the fact that they
had met with Muatassim or the substance of the discussion, and
expressed particular concern that they make no mention of their
call at the NSC during a subsequent meeting with unspecified
representatives at the National Engineering Services and Supply
Company (NESSCO). (Note: It is widely believed that NESSCO is a
holding company for Saif al-Islam al-Qadhafi's many business
interests. NESSCO is headed by Abdulrahman Karfakh, a close
confidante and reported business partner of and fixer for Saif
al-Islam. End note.)

3. (C) Comment: We have previously heard reports to the effect
that Muatassim was seeking to expand his involvement in dealings
with foreign companies, perceived to be a prestigious endeavor,
as part of a broader campaign to bolster his position in the
regime. It is an article of faith among expatriate
businesspeople in Tripoli that any contract of appreciable size
involving foreign companies winds up being "facilitated" and
blessed by NESSCO - for a price. Saif al-Islam, through
Karfakh, has reportedly amassed a sizeable personal fortune,
partly because he has since the lifting of sanctions largely
monopolized the lucrative niche market in facilitating the entry
of foreign companies into Libya. There are widespread rumors of
a de facto contest for power - and potentially the right to
succeed their father - between Muatassim and Saif al-Islam. A
move by Muatassim to challenge his older brother's primacy with
respect to dealings with foreign companies could significantly
complicate that fraternal dynamic. End comment.

STEVENS