BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

UNCLAS STATE 090771 SIPDIS DAKAR FOR WALLACE BAIN ECON E.O. 12958: N/A TAGS: ETTC KOMC SG NI IS SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK TO SENEGAL ON LICENSE GC 0997-09 REF: 2006 BLUE LANTERN GUIDEBOOK ¶1. This is an Action Request. See paragraphs 2-4. ¶2. The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license inquiry on a request (DDTC case GC 0997-07) for the re-export of three (3) C-130H aircraft from Nigeria to Senegal. The aircraft are defense articles controlled under the International Traffic in Arms Regulations (ITAR) administered by PM/DDTC. Post is requested to complete this Blue Lantern inquiry within 30 days. Lack of response to a Blue Lantern inquiry will affect pending and future license requests involving parties to this license. ¶3. Reason for request: --Brokering of aircraft by private entity A.D. Consultants (ADCON),Israel on behalf of government of Nigeria and Senegal without prior approval from DDTC. In addition, ADCON was not registered as a broker with DDTC as required under the ITAR. ADCON subsequently registered under parent company Oforid Holdings, Ltd., Israel. --Re-titling of C-130H aircraft from Government of Nigeria (Ministry of Defense) to ADCON without prior approval from DDTC. --Sole documentation establishing relationship between ADCON and Government of Senegal is limited to an end-user certification stating that the C-130H aircraft were "ordered through" ADCON. No documentation or contract between ADCON and GoS detailing the terms and conditions of the sale. --No documentation on the source, type, and amount of any fees, payments, or other consideration paid to ADCON for brokering the transaction. --No documentation from GoS indicating the end-use of the aircraft. --Verification that all parties to the transaction have been identified. ¶4. ACTION: The Department requests that Post contact the Government of Senegal to determine the bona fides of re-export transaction. The following points are included for guidance: --Would the GoS provide contractual or other documentation identifying the role of all parties to the transaction and the full terms of purchase? --To date, has any money been exchanged for the aircraft? --Would GoS confirm the specific end-use of the aircraft (i.e. military transport, border security, humanitarian aid, other missions, etc.)? --Will the aircraft be serviced or refurbished in a third country before arrival in Senegal? (**NOTE: GC 0997-07 states that the aircraft will be transferred to Denel (Pty) Ltd. in South Africa for refurbishing before final delivery to Senegal. DDTC would like to inquire if Senegal is aware of the transaction and Denel's participation.**) --Where will the aircraft be located in Senegal upon delivery? --Does the GoS understand the restrictions on USML items, especially the prohibition against unauthorized re-transfer and re-export? END ACTION. ¶5. Details of license application: DTC CASE: GC 0997-09 QUANTITY/COMMODITY: 3 - C-130H Aircraft Aircraft No. NAF 914, Serial No. 4649 Aircraft No. NAF 915, Serial No. 4650 Aircraft No. NAF 916, Serial No. 4962 License Value: $6,100,000 USD SELLER: Nigerian Ministry of Defense Office of the Permanent Secretary Ship House Olusegun Obasanjo Way Area 10, P.M.B. 196, Garki, Abuja Nigeria Tel: 09-2348970 Fax: 09-2340708 FOREIGN CONSIGNEE: ADCON 7, Golda Meir St. Science Park Nes-Ziona 74036 Israel POC: Mr. Gabriel Pereiz, President & CEO FOREIGN INTERMEDIATE CONSIGNEE: Denel (Pty) Ltd. Nellmapius Drive, Irene P.O. Box 8322, Centurion, 0446 South Africa Tel: 27 (0)11 9272895 Mobile: 27 (0)83 628 1679 POC: Mr. Albert van Oldenmark *Denel is or will be contracted by ADCON to service and refurbish the aircraft to ensure their sky-worthiness.* *Value of Denel services: $32,729,765.* FOREIGN END-USER: Ministry of Armed Forces of the Republic of Senegal Building de Direction Administrative 1, 8ieme etage Dakar, Senegal POC: Mr. Becaye Diop, Minister of Armed Forces of the Republic of Senegal PURPOSE: Transport of cargo and troops inside Senegal, and for UN missions outside Senegal. ¶6. Submitted in support of license application GC 0997-09 were the following documents (PM/DTCC will fax documentation to Post upon request): --General Correspondence Transmittal Letter, signed by Bukar Goni Aji, Permanent Secretary for the Minister of Defense of Nigeria, dated 28 April 2009. --Bill of Sale for 3 C-130 aircraft from GoN to ADCON, signed by D.A. Muhammed, dated 22 May 2007. --End-User Certificate signed by Mr. Becaye Diop, Minister of Armed Forces, Senegal, dated 2 May 2009. --DSP-83 Non-Transfer and Use Certificate signed by Mr. Bukar Goni Aji, Ministry of Defense Nigeria, dated 20 March 2009, and Mr. Becaye Diop, Minister of Armed Forces, Senegal, dated 23 March 2009. --Denel's "Proposal for the Recovery, Relocation, and Service of the ADC C-130H Aircraft 914, 915, 916" dated 28 November ¶2008. ¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Meredith Sundlof. Phone: 202-663-3455; Email: SundlofME@state.gov; SIPRNET: SundlofME@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file at http://www.intelink.sgov.gov/wiki/Blue Lantern End-Use Monitoring Program. ¶8. Department is grateful for Post's assistance in this matter. CLINTON