

Currently released so far... 12648 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AORC
AF
AU
ASEC
AMGT
AS
APER
AR
AG
ARF
AJ
AA
AINF
APECO
AODE
ABLD
AMG
ATPDEA
AE
AEMR
AMED
AGAO
AFIN
AL
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
AID
ASCH
AM
AORL
ASEAN
APEC
ADM
AFSI
AFSN
ADCO
ABUD
AN
AY
AIT
AGR
ACOA
ANET
ASIG
AMCHAMS
AGMT
AADP
ADPM
ATRN
ALOW
ACS
APCS
AFFAIRS
ADANA
AECL
ACAO
AORG
AROC
AO
ACABQ
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
AFU
BR
BTIO
BY
BO
BA
BU
BL
BN
BM
BF
BEXP
BK
BG
BB
BTIU
BBSR
BRUSSELS
BD
BIDEN
BE
BH
BILAT
BC
BX
BT
BP
BMGT
BWC
CS
CA
CH
CD
CO
CE
CU
CVIS
CASC
CJAN
CI
CPAS
CMGT
CDG
CIC
CAC
CBW
CWC
COUNTER
CW
CT
CY
CNARC
CACM
CG
CB
CM
CV
CIDA
CLINTON
CHR
COE
CR
CIS
CDC
CONS
CF
CODEL
COPUOS
CIA
CFED
CARSON
CL
CROS
CAPC
CTR
CACS
CN
CBSA
CEUDA
COM
CONDOLEEZZA
CICTE
COUNTRY
CBE
CKGR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
CARICOM
CSW
CITT
CDB
CJUS
CTM
CAN
CLMT
CBC
EAID
ECON
EFIS
ETRD
EC
ENRG
EINV
EFIN
EAGR
ETTC
ECPS
EINT
ES
EIND
EAIR
EU
EUN
EG
EPET
ELAB
EWWT
EMIN
ECIN
ESA
ER
ETRDEINVECINPGOVCS
EAIG
ET
ETRO
ELTN
EI
EN
EUR
EK
EUMEM
EPA
ENGR
EXTERNAL
EUREM
ELN
EUC
ENERG
ENIV
EZ
ERD
EFTA
ETRC
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ESENV
ENNP
ENVI
ETRDECONWTOCS
ECINECONCS
EFINECONCS
ELECTIONS
ENVR
EXIM
ERNG
ECA
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
IC
IV
IAEA
IR
IO
IT
IN
IS
IZ
IMO
IPR
IWC
ICAO
ILO
ID
ICTY
ICJ
INMARSAT
INDO
IL
IMF
IRS
IQ
IA
ICRC
IDA
IAHRC
IBRD
ISLAMISTS
IGAD
ILC
ITU
ITF
INRA
INRO
IDP
ICTR
IEFIN
IRC
ITRA
ITALY
INRB
INTELSAT
IBET
IRAQI
ISRAELI
IIP
ITPGOV
ITALIAN
INTERNAL
INTERPOL
IEA
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
KBTR
KPAO
KOMC
KCRM
KDEM
KHIV
KBIO
KTIA
KMDR
KNNP
KSCA
KTIP
KWMN
KIPR
KCOR
KRVC
KFRD
KPAL
KWBG
KE
KTDB
KUNR
KSPR
KJUS
KGHG
KAWC
KCFE
KGCC
KOLY
KSUM
KACT
KISL
KTFN
KFLU
KSTH
KMPI
KHDP
KS
KHLS
KMRS
KID
KN
KU
KAWK
KSAC
KCOM
KAID
KIRC
KWMNCS
KMCA
KNEI
KCRS
KPKO
KICC
KPOA
KV
KDRG
KIRF
KSEO
KVPR
KSEP
KTER
KBCT
KFIN
KGIC
KCIP
KZ
KG
KWAC
KRAD
KPRP
KTEX
KNAR
KPLS
KPAK
KSTC
KFLO
KSCI
KIDE
KOMS
KHSA
KSAF
KPWR
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KFSC
KRIM
KVRP
KENV
KNSD
KCGC
KDDG
KPRV
KTBT
KWMM
KMFO
KMOC
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KPAI
KO
KVIR
KREC
KX
KR
KCRCM
KBTS
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KTLA
KCSY
KTRD
KNPP
KJUST
KCMR
KRCM
KCFC
KCHG
KREL
KFTFN
KLIG
KDEMAF
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KMIG
KRGY
KIFR
MARR
MOPS
MASS
MX
MNUC
MCAP
MO
MR
MEPP
MTCRE
MAPP
MEPN
MZ
MT
ML
MA
MY
MIL
MD
MASSMNUC
MU
MK
MTCR
MUCN
MAS
MEDIA
MAR
MC
MI
MQADHAFI
MPOS
MTRE
MASC
MG
MARAD
MRCRE
MW
MP
MOPPS
MTS
MLS
MILI
MEPI
MEETINGS
MERCOSUR
MCC
MIK
MAPS
MV
MILITARY
MDC
NATO
NZ
NL
NO
NK
NU
NPT
NI
NG
NEW
NSF
NA
NPG
NSG
NE
NSSP
NS
NDP
NSC
NAFTA
NH
NV
NP
NPA
NSFO
NT
NW
NASA
NORAD
NATIONAL
NGO
NR
NIPP
NZUS
NC
NRR
NAR
NATOPREL
OEXC
OTRA
OPRC
OVIP
OAS
OIIP
OSCE
OREP
OPIC
OFDP
OMIG
ODIP
OVP
OSCI
OIC
OECD
OIE
OPDC
ON
OCII
OPAD
OBSP
OFFICIALS
OPCW
OHUM
OES
OCS
OTR
OSAC
OFDA
PGOV
PREL
PM
PHUM
PTER
PINR
PINS
PREF
PARM
PL
PK
PU
PBTS
PBIO
PHSA
PE
PO
PROP
PA
PNAT
POL
PLN
POLITICAL
PARTIES
PCUL
PAK
PGGV
PAO
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PAS
PGIV
PHUMPREL
PCI
PG
POGOV
PHUMPGOV
PEL
POLITICS
POLICY
PINL
PP
PREO
PAHO
PBT
PMIL
POV
PRL
PDOV
PTBS
PRAM
PREFA
PSI
PAIGH
POSTS
PALESTINIAN
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PINF
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PROV
PGOC
PY
PHUH
PF
PHUS
RU
RS
RO
RW
RP
RFE
REGION
REACTION
REPORT
ROOD
RCMP
RM
RSO
ROBERT
RICE
RSP
RF
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
SENV
SU
SCUL
SOCI
SNAR
SL
SW
SMIG
SP
SY
SA
SHUM
SZ
SYRIA
SF
SR
SO
SARS
SN
SC
SIPRS
SI
SYR
SEVN
SG
SPCE
SK
STEINBERG
SH
SNARCS
SAARC
SCRS
SENVKGHG
SAN
ST
SIPDIS
SNARIZ
SNARN
SSA
SPCVIS
SOFA
SEN
SANC
SWE
SHI
TW
TU
TBIO
TSPL
TPHY
TRGY
TC
TT
TSPA
TINT
TERRORISM
TX
TR
TS
TN
TD
TH
TIP
TNGD
TI
TZ
THPY
TP
TBID
TF
TL
TV
TK
TO
TRSY
TURKEY
TFIN
TAGS
UN
UK
UNSC
UNGA
US
UNESCO
UP
UNHRC
UNAUS
USTR
UNDP
UNEP
UY
UNCHR
UG
UZ
UNPUOS
USEU
UNMIK
UNDC
UNICEF
UV
UNHCR
UNCHC
UNCSD
USOAS
UNFCYP
USUN
USNC
UNIDROIT
UNO
UNCND
USPS
USAID
UE
UNVIE
UAE
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
Browse by classification
Community resources
courage is contagious
Viewing cable 10MAPUTO86, XXXXXXXXXXXX TALKS OF CORRUPTION AT THE
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #10MAPUTO86.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
10MAPUTO86 | 2010-01-28 06:21 | 2010-12-08 21:00 | SECRET//NOFORN | Embassy Maputo |
VZCZCXRO0006
RR RUEHBZ RUEHDU RUEHMR RUEHRN
DE RUEHTO #0086/01 0280621
ZNY SSSSS ZZH
R 280621Z JAN 10
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 1221
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHLO/AMEMBASSY LONDON 0605
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC
S E C R E T SECTION 01 OF 03 MAPUTO 000086
NOFORN
SIPDIS
E.O. 12958: DECL: 01/28/2020
TAGS: PREL PGOV KDEM KMCA MCC SNAR EINV MZ
SUBJECT: XXXXXXXXXXXX TALKS OF CORRUPTION AT THE
HIGHEST LEVELS OF GOVERNMENT
REF: A. MAPUTO 80
¶B. 07 MAPUTO 1395
MAPUTO 00000086 001.2 OF 003
Classified By: Charge d'Affaires Todd Chapman for reasons 1.4 (b+d)
¶1. (S/NF) SUMMARY: The Charge recently met with XXXXXXXXXXXX
--("the source") who described his frustrations with FRELIMO, President
Guebuza, and Mohamed Bashir Suleiman (MBS). He complained that
they exercise complete control over the licit and illicit economy of
Mozambique. The source, who has excellent connections within
the Government of Mozambique (GRM), including the private number
of the President, as well as a personal relationship with MBS,
said "I do not want to do business anymore in Mozambique
“ because of this triumverate of control. He is liquidating his
assets and leaving Mozambique, and says that he now sees
the "malaise" in Mozambique as if "he had cataracts
but now see it all."
¶2. (S/NF) The source describes President Guebuza, who he
has known and befriended for the past twenty years as a
"vicious scorpion who will sting you," and has an even more
grav assessment of MBS. He cautions that FRELIMO is not
interested in bettering the life of Mozambique's citizens,
but rather its self-enrichment. In the licit economy, the
ruling party, FRELIMO, and MBS work in tandem to control the
legal and illegal economies and restrict the space for
private sector growth by demanding a cut of all significant
business transactions. In the illicit economy, MBS dominates
money laundering and drug transshipment, providing kickbacks
to FRELIMO. Other key players involved in pressuring the
business community for bribes or percentage stakes, according
to the source, are Domingos Tivane, head of Customs, and
former Prime Minister Luisa Diogo. END SUMMARY.
-----------------------------------
MOHAMED BASHIR SULEIMAN AND GUEBUZA
-----------------------------------
¶3. (S/NF) The source XXXXXXXXXXXX. He speculated that
over the next term Guebuza would use his business proxies
to amass a still larger personal fortune. Guebuza manages his
business interests through several front companies, including
Celso Ismael Correia's Insitec and Salimo Abdullah's Intelec
Holdings. The source said that MBS meets directly with
President Guebuza, who has direct knowledge of MBS' funding
to both the FRELIMO party (underwriting the recent election
campaign) and Guebuza's front companies. The source, who
described Correia as a "30 year-old pipsqueak," stated that
Correia has no business experience or university degree, but
shows great loyalty to Guebuza.
¶4. (C) Guebuza's business interests in Mozambique are
legion. They include stakes in Mocambique Gestores (MG),
Maputo Port Development Company (MPDC) which runs Maputo
Port, Focus 21, Navique, Vodacom, and SASOL. Guebuza also
has a share in Maputo Corridor Logistics Initiative (MCLI)
which controls the toll road from Maputo to South Africa,
according to the source. Guebuza has shares in a significant
number of banks, including BCI Fomento (where Correia is
Chairman), Mocambique Capitais, Moza Banco, and Geocapital.
Through family members, Guebuza also controls Intelec
Business Advisory and Consulting, Beira Grain Terminal, MBT
Construction Ltd, Englob Consultants Ltd, Mozambique Power
Industries, Macequece Ltd, and Mozambique Natural Resources
Corp.
¶5. (S/NF) One new area that Guebuza appears to be
interested in is the gaming industry. The source says that
Guebuza forced the Constitutional Council (CC) to review and
declare a recent law liberalizing the gaming industry as
"constitutional" even though it calls for all casino assets
to revert to the state after a defined period of time, in
direct contravention of private property laws enshrined in
the Constitution. The judges of the CC, who also ruled in
favor of decisions during the elections to invalidate large
numbers of opposition candidates in the legislative and
presidential races, complained of the unconstitutionality of
the new law, but were told to give it a favorable ruling,
which they did.
¶6. (S/NF) The source elaborated on the depth of Guebuza's
business interests, which range across the economy. He said
MAPUTO 00000086 002.2 OF 003
that Guebuza is in on almost all of the "mega-project"
multi-million dollar deals via contractual stipulations to
work with the Mozambican private sector. One example is
Guebuza's involvement in the 2007 purchase of Cahora Bassa
Hydroelectric Dam (HCB) from the Portuguese Government for
$950 million. $700 million of this was paid by a private
consortium of banks, which was arranged by a Guebuza proxy,
for which Guebuza received, while he was a sitting president,
an estimated commission of between $35 and $50 million. The
Portuguese bank which arranged the financing turned over its
shares in BCI Fomento, one of the largest Mozambican
commercial banks, to a Guebuza-controlled company.
---------------
MBS AND FRELIMO
---------------
¶7. (S/NF) The source, says that FRELIMO brazenly squeezes
the business community for kickbacks. As an example, the
source said that he has personally seen Manuel Tome, former
FRELIMO Secretary General, senior member of the National
Assembly, and relative of President Chissano, in MBS' office
receiving pay-offs quite openly. Head of Customs Domingos
Tivane openly demands and receives payoffs from importers,
including MBS. The source stated that one business contact
remarked to him that when visiting Tivane's expansive home to
deliver a bribe he noticed that the bureaucrat had solid gold
fixtures in his bathroom. The source also stated that former
Prime Minister Luisa Diogo, until she was removed from the
Cabinet (septel), was heavily involved in taking bribes for
FRELIMO, of which she kept a percentage. Similar allegations
were raised in the 21 January issue of Zambeze, regarding
soft loans paid to Diogo's husband Albano Silva, purchases of
houses and buildings for a fraction of their value, as well
as Diogo's close ties to officials such as Diodino Cambaza,
whose corruption trial is ongoing.
¶8. (S/NF) At the ports, the source commented that FRELIMO
has its own clearing agent that handles FRELIMO and MBS
business. The clearing agent chronically under-invoices
items, avoids the 17% VAT, and also has an arrangement with
Tivane's Customs authorities to bypass the ports' mandatory
scanning. The source has documentary proof of the
under-invoicing by MBS, and poloff has seen MBS' trucks drive
through the port without being scanned. Nonetheless, the
source said that Government of Mozambique (GRM) officials
routinely describe MBS as an "untouchable" due to his
connections to Tivane and Guebuza, a situation which is
reported to irk a cash-strapped Tax Authority (AT) President
Rosario Fernandes.
-------------------------
MBS AND OTHER BUSINESSMEN
-------------------------
¶9. (S/NF) Regarding MBS' retail operation, the source
states that MBS does not tolerate competition. The source's
milk processing facility was threatened by MBS who used
VAT-avoidance and under-invoicing to dump vast quantities of
imported condensed milk on the market in order to put the
source out of business. Only after the source made an
agreement with MBS for exclusive distribution of his milk
products, with a 10% kickback on all sales to MBS, did MBS
stop his dumping practices. Other businessmen have
complained about similar practices in other commodities to
include edible oil. The source complained that "even those
who bribe" MBS or FRELIMO cannot make a profit under such
conditions.
------------------------------
NARCOTICS AND MONEY LAUNDERING
------------------------------
¶10. (S/NF) The source says he only has second hand
knowledge of drug trafficking and money laundering in
Mozambique. He said that "MBS and the 'Nacala dealers' all
have offices in Dubai" to facilitate money laundering
operations in Mozambique. It is through these operations
that after 15 years in business in Mozambique, MBS was able
to pay $30 million in cash to establish his shopping plaza
downtown, Maputo Shopping, which opened in 2007. The source
said that he asked prominent Ismaili/Aga Khan businessman
Mustaque Ali how MBS became so rich so fast, and Ali's wry
answer was "Johnson's baby powder," a euphemism for drugs.
The source noted that the sometimes erratic changes in
MAPUTO 00000086 003.2 OF 003
Mozambique's foreign exchange position are due to sudden
multi-million dollar transfers of cash overseas tied to money
laundering. The source commented that in the past few years
there have been several embarrassing situations in which
shiploads of drugs, primarily hashish and heroin have washed
ashore; however, the media is usually afraid to report on
such incidents because no one wants to become another Carlos
Cardoso, the courageous Mozambican journalist who was
murdered in 2000 while investigating a massive bank fraud
tied to then-President Chissano's family.
---------------------------------------------
COMMENT: CANDID COMMENTS FROM A CONNECTED MAN
---------------------------------------------
¶11. (S/NF) The source, XXXXXXXXXXXX While he has an axe to
grind because he is frustrated with the scope and depth of
corruption in Mozambique, his statements corroborate what we
have learned from other sources (Ref A). Ties with MBS and
other known money launders and narcotraffickers by senior GRM
officials are disturbing and demonstrate a short-sighted
focus on self-enrichment. The source cautions against
building long term relationships with FRELIMO, and fears
that, having allowed the illicit economy to prosper, and
having advertised Mozambique as a money laundering
destination and drug transshipment hotspot, the ruling party
will no longer be able to control the nefarious activities
within its borders. Rumors and stories of corruption abound
in Mozambique, but rarely will a successful well-connected
XXXXXXXXXXXX be willing to share specific practices based
on first-hand knowledge and participation in these practices.
CHAPMAN