BULGARIA: MIXED RESULTS FOR KHAN ASPARUH BLUE

S E C R E T SOFIA 000612

SIPDIS

PM/DTCC FOR BLUE LANTERN COORDINATOR

E.O. 12958: DECL: 10/14/2019
TAGS: ETTC KOMC GT BU
SUBJECT: BULGARIA: MIXED RESULTS FOR KHAN ASPARUH BLUE
LANTERN (BAL 118-09)

REF: SECSTATE 104728

Classified By: CDA John Ordway for reasons 1.4 (b) and (d).


1. (SBU) Per reftel instructions, on October 12, Post visited
foreign intermediate consignee, Khan Asparuh, in connection
with subject case. After performing due diligence, post
confirmed derogatory information regarding Khan Asparuh
within the Bulgarian Ministry of Energy. Khan Asparuh denied
any business dealings with Combat S.A., from Guatemala, or
the International Security and Defense Systems Company, from
Israel. END SUMMARY.


2. (C) Regarding the bona fides of Khan Asparuh, answers
below are keyed to questions in ref A, paragraph 5:

(To Khan Asparuh)
--When was your company established and who are its
principals? Does your company or any of its principals do
business under any other name?

Khan Asparuh was established in April 2005. Jordan Petkov is
the Deputy Managing Director and Sales Manager. Todor
Kozykarov is the Managing Director.

--What products and services does your company provide? Who
are your regular business partners and where do they reside?
Who are your regular customers and where do they reside?

The company can provide any type of products that any of the
manufacturers in Bulgaria provides. Additionally, they
arrange for the servicing and refurbishment of all types of
military air and ground vehicles. Khan Asparuh conducts
significant business with Arcus, Arsenal, and VMZ on the
Bulgarian side, and Alliant, ATK, and GD on the U.S. side.

--What is your relationship with Combat S.A. of Guatemala and
International Security & Defense Systems (ISDS) of Israel?
What are the terms of the agreement between your company,
Combat S.A., and/or ISDS in this transaction?

Vladimir Velichkov and Jordan Petkov, both, deny conducting
business, directly or indirectly, with Combat S.A., from
Guatemala, or the International Security and Defense Systems
Company, from Israel.

--What is your relationship with the Guatemalan Ministry of
National Defense? What are the terms of the agreement between
your company and the Ministry of National Defense in these
transactions? Who is your point of contact with the Ministry
of National Defense?

N/A.

--What role is your company playing in these transactions? Is
your company receiving any fees or commissions for its
services in these transactions? If so, please provide details
and documentation.

N/A.

--Is your company paying any fees or commissions to any third
parties for their services in these transactions? If so,
please provide details and documentation, including name and
addresses for these third parties.

N/A.

--Did your company manufacture these rifles? If not, please
explain when and from whom you acquired them.

N/A.

(To Ivelina Bahchevanova, Ministry of Energy, International
Controlled Trade and Security Directorate.
--Is Khan Asparuh properly registered and authorized to
broker or export defense articles in Bulgaria?

Khan Asparuh is properly registered and authorized to broker
and export defense articles in Bulgaria, but their license is
set to expire on October 20, 2009.

--Do you have any derogatory information on Khan Asparuh that
would question its reliability as a supplier of defense
articles?

We have heard numerous negative comments concerning Vladimir
Velichkov, an unofficial, but clearly important player inside
Khan Asparuh. He is rumored to have been involved in
widespread corruption and bribery during his tenure in office
as the head of the Internationally Controlled Trade and

Security Directorate. His specific role inside Khan Asparuh
is still not yet clearly defined. Velichkov's questionable
past, coupled with deceptive business practices regarding
repackaging and repainting military equipment, are cause for
significant concern in future dealings with Khan Asparuh.

ORDWAY