Gulf Investment Group Influence In The Comoros

UNCLAS ANTANANARIVO 000002

SENSITIVE
SIPDIS

C O R R E C T E D C O P Y //ADDING ADDRESSEE//

DEPT FOR AF/E, AF/FO, INR/AA
PARIS FOR AFRICA WATCHER

E.O. 12958: N/A
TAGS: ECON PREL EFIN CN
SUBJECT: Gulf Investment Group Influence In The Comoros

REF: ANTAN 809


1. (SBU) ACTION REQUEST: Post seeks insight from the Department
into the background of Comoro Gulf Holdings and its principal
officers: Bashar Kiwan (French-Syrian),President; Ali Kazma, Vice
President; Ahmed Jaroudi (Lebanese),Manager.
END ACTION REQUEST.

Investment Promotion
- - - - - - - - - - -


2. (SBU) In recent months, the "Kuwait-based" Comoro Gulf Holdings
(CGH) has ramped up its activities in the Comoros. The long-awaited
reopening of the Itsandra Hotel in Moroni (one of only two
international hotels) in December, 2008, marked a tangible sign of
CGH investment. With its 265 euro/night bungalows, the Itsandra is
hoped to become a destination for wealthy Gulf tourists, and
investors. Beyond the hotel, CGH has announced plans for a massive
tourist village in the north of Grande Comore, an urban
revitalization project in Moroni, and inter-island ferry ports. The
group has opened a banking operation in the Comoros and obtained a
cell phone company license.


3. (SBU) While there is little tangible aside from the Itsandra
Hotel, there is a lot of activity - CGH's top officials around town
and on the front pages, accompanying would be investors or signing
deals. The company recently established a new headquarters office
in a large villa compound outside Moroni. On a given day, a dozen
cars with "CGH" logos may be spotted around Moroni. Whatever their
ambitions, CGH has established a substantial, permanent presence in
the Comoros, including ties to Comoran public and private elites.

Political Activism
- - - - - - - - - -


4. (SBU) Comoro Gulf Holdings has been overt in its political
support for President Sambi and the Union Government. During the
recent fuel shortages, the group reportedly made between USD three
and five million in revolving credit available for petroleum
imports. After the March, 2008, military intervention to depose
Colonel Bacar in Anjouan, posters of President Sambi, "father of
national unity" appeared all over the country, with the CGH logo in
the corner. The group launched a newspaper, al-Balad, which mostly
reprints pro-Sambi articles from the official al-Watwan paper and
touts CGH activities.


5. (SBU) Most notably, CGH actively and openly lobbied for a
controversial "economic citizenship law" that appeared to be
rejected, then was passed at the National Assembly (REFTEL). Prior
to that vote, in October, six National Assembly deputies visited
Kuwait at CGH expense for a fact-finding mission to hear from
potential investors why the assurances of "economic citizenship"
were crucial. The deputies received laptops and other gifts; upon
their return to the Comoros they all supported the law. The local
press reported that former National Assembly Secretary General,
Aboubacar Said Salim, was hired by CGH soon after the vote.

COMMENT:
- - - - -


6. (SBU) Taken at face value, CGH is a limited-funding promoter
with a long-term vision of the Comoros as a Gulf tourist
destination. Given years of stagnant economic growth, it is
unsurprising that President Sambi's government would welcome these
investors. Even the active promotion to force through the economic
citizenship law could be viewed in terms of investment promotion and
assurances. Still, something does not add up and it is worth
investigating whether CGH's growing influence in the Comoros is
completely benign. END COMMENT.

STROMAYER