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Viewing cable 04NASSAU1542, SCANDAL IN THE FAMILY? PRIME MINISTER DENIES

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Reference ID Created Released Classification Origin
04NASSAU1542 2004-08-13 21:05 2011-08-30 01:44 CONFIDENTIAL Embassy Nassau
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 NASSAU 001542 
 
SIPDIS 
 
E.O. 12958: DECL: 08/13/2014 
TAGS: PGOV PINR EFIN BF
SUBJECT: SCANDAL IN THE FAMILY?  PRIME MINISTER DENIES 
IRANIAN BUSINESSMAN'S CAMPAIGN CONTRIBUTION CLAIMS 
 
 
Classified By: CDA Robert M. Witajewski, Reasons 1.4 b and d 
 
------- 
SUMMARY 
------- 
 
1.  (C) Iranian businessman Mohammed Harajchi presented 
documentation of some of his financial contributions to the 
ruling Progressive Liberal Party during a press event held at 
his multi-million dollar Paradise Island home on 11 August 
2004.  Harajchi denied that his contributions were designed 
to gain reinstatement of his bank's operating license, which 
had been revoked in 2001 amidst allegations of money 
laundering.  The PLP issued a statement highlighting 
Harajchi's confirmation that he received no political favors 
in exchange for his contributions.  Prime Minister Christie, 
who raised Harajchi's pending announcement three times with 
the Charge at an unrelated event, appearing uneasy and 
preoccupied, released a press statement on August 12 angrily 
denying that he or his ministers had accepted improper 
contributions.  The PM specifically denied that he had 
received $500,000 from Harajchi to renovate his Cable Beach 
home.  Christie promised that the PLP would soon give a full 
and accurate accounting of Harajchi's donations. 
END SUMMARY. 
 
 
Millions in Campaign Contributions without a Quid Pro Quo? 
--------------------------------------------- ------------- 
 
2.  (U) Iranian businessman and long-time Bahamas resident 
Mohammed Harajchi held a press conference on 11 August 2004 
at which he provided reporters with "evidence" to back up his 
claim that he gave $10 million to the Progressive Liberal 
Party (PLP) and its candidates during the May 2002 general 
elections.  Harajchi claimed that he had been approached, 
either directly or via intermediaries, by "90 percent of the 
(Christie) cabinet" for campaign contributions, had helped to 
refurbish PLP headquarters, and underwritten several PLP 
political rallies, among other things. 
 
3.  (U)  Harajchi denied that his generosity was designed to 
win back the operating license of his bank, Suisse Security 
Bank and Trust, which was revoked by the Central Bank in 
March 2001 during the previous government amidst accusations 
of money laundering.  Harajchi lost several court appeals to 
have his license reinstated. 
 
4.  (U) Harajchi insisted to reporters that current Prime 
Minister Perry Christie reached out to him prior to the 2002 
campaign to express his belief that Harajchi's bank license 
case had been handled badly.  Harajchi said he told Christie 
that he was no longer fighting to get his license restored, 
but rather to get "justice" and clear his name.  When asked 
in the press conference if Christie made him any promises 
regarding his bank license, Harajchi declined to answer, 
calling the Prime Minister "an honourable man" and advising 
reporters to take the matter up with him directly. 
 
5.  (U) Harajchi provided receipts for a $100,000 
contribution to the "PLP Leadership Act," bills from two 
fireworks displays totaling $75,000, and a $1,000 check paid 
to the "Singing Bishop Prophet" Lawrence Rolle, who performed 
at two PLP rallies.  Harajchi also presented the results of a 
lie detector test which he said verified that he was telling 
the truth. 
 
 
PLP Says, We Agree. 
------------------ 
 
6.  (U) The PLP issued a statement shortly after the press 
conference confirming that Harajchi had made donations to the 
party, but in amounts far short of $10 million.  The PLP 
emphasized in its press release that it is neither illegal or 
improper for political parties in The Bahamas to accept 
donations from individuals, and highlighted attention on 
Harajchi's confirmation that he had received no favor or 
promise in exchange for his financial donation. 
 
7.  (U) Prime Minister Christie issued his own press release 
the following day responding to Harajchi's allegations,  In a 
two-page press release sent to the local newspapers  August 
12, Christie declared that he "rejected any insinuation" 
Harajchi may have made "in his "relentless campaign of 
vengeance" against the PLP government.  Christie stood behind 
his ministers and defended them against what he characterized 
as Harajchi's attempt to "smear the good name and reputation" 
of his Cabinet.  Christie attributed Harajchi's comments to 
resentment at not being granted a new operating license for 
his bank. 
 
8.  (U)  Addressing rumors that campaign contributions had 
financed his newly-renovated home in the Cable Beach area of 
Nassau, PM Christie said "Mr. Harajchi did not contribute so 
much as a single cent toward the renovation of my house."  He 
pointedly refused to call Harajchi an "honourable man," 
instead saying that Harajchi had expected Christie's 
government to "pervert the course of justice and give him 
back his bank license."  Christie called Harajchi's claim 
that he had donated $10 million "an absolute lie."  Christie 
insisted that the PLP was investigating its own accounting 
records and would present the details of its findings 
regarding Harajchi's donations as soon as possible. 
 
 
COMMENT 
------- 
 
9.  (C) Prime Minister Christie spent the hours before 
Harajchi's press event at the opening of a disaster 
preparedness conference sponsored by the Bahamian National 
Emergency Management Agency.  During the course of the 
morning, the PM quietly raised Harajchi's pending press 
conference three times with the Charge as the two sat next to 
each other and talked.  Christie uncharacteristically stayed 
for the entire event and seemed reluctant to go back to his 
office where, he knew, reporters would be awaiting his 
response to Harajchi's allegations.  After previously leaving 
the public comments to his ministers - one of whom called 
Harajchi a "terrorist" before backing off - the Prime 
Minister has now personally turned his guns on Harajchi in an 
effort to decisively disassociate himself and his party from 
a shady businessman whose story is not going away. 
 
10. (C)  Both of The Bahamas' two major political parties 
live in glass houses when it comes to campaign contributions. 
 Many Bahamian campaign contributors are not as reticent as 
Harajchi claims to have been about putting down explicit quid 
pro quo markers in return for their contributions.  As much 
as the FNM opposition might like to exploit Harajchi's 
corruption charges leveled against the Christie Government 
and cast some rocks at the PLP's home, it knows that it too 
cannot afford close scrutiny of the source -- and quid pro 
quo's of -- its own party's campaign contributions. 
WITAJEWSKI 
WITAJEWSKI