VZCZCXRO3953
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHPS #0989/01 3241436
ZNY CCCCC ZZH
P 201436Z NOV 06
FM USOFFICE PRISTINA
TO RUEHC/SECSTATE WASHDC PRIORITY 6720
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 0928
RHMFISS/CDR USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHFMISS/AFSOUTH NAPLES IT
RHMFISS/CDR TF FALCON
RHEFDIA/DIA WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEPGEA/CDR650THMIGP SHAPE BE
RHEHNSC/NSC WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUFOANA/USNIC PRISTINA SR

C O N F I D E N T I A L SECTION 01 OF 02 PRISTINA 000989 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR DRL, INL, AND EUR/SCE, NSC FOR BRAUN, USUN FOR 
DREW SCHUFLETOWSKI, USOSCE FOR STEVE STEGER 
 
E.O. 12958: DECL: 09/29/2016 
TAGS: PGOV PREL KCRM EAID KDEM INR YI
SUBJECT: KOSOVO: CONTROVERSIAL AND WEALTHY EXPAT FORMS NEW 
KOSOVO ALLIANCE PARTY 
 
REF: 05 PRISTINA 83 
 
Classified By: COM TINA KAIDANOW FOR REASONS 1.4 (B) AND (D). 
 
¶1. (C) SUMMARY:  Bexhet Pacolli's Alliance for a New Kosovo 
(AKR) recently held its first convention in Pristina, 
evolving from a U.S.-based lobbying group for Kosovo 
independence into a registered political party.  Pacolli, a 
wealthy Kosovar Albanian who lives in Switzerland, has 
plastered the Kosovo countryside with billboards advertising 
his new party and promising to work all manner of miracles 
for Kosovo.  The party convention revealed Pacolli's 
autocratic style, but his wealth, ambition, and connections 
to former Assembly Speaker Nexhat Daci translate into 
influence.  He remains unpopular and distrusted by many 
Kosovars for his murky ties to former Russian President 
Yeltsin, Slobodan Milosevic and -- allegedly -- to organized 
crime.  END SUMMARY. 
 
Bexhet Pacolli:  Controversial Emigre Millionaire 
 
¶2. (C) The AKR held its first national convention on October 
26, unanimously electing founder Bexhet Pacolli as party 
president.  Pacolli is a controversial Swiss-Kosovar 
multi-millionaire who made his fortune through a series of 
lucrative deals between his company Mabetex and the Russian 
and Kazakh governments.  He has been viewed with suspicion in 
the past because of rumored connections to the Russian 
political elite and the late former Yugoslav President 
Slobodan Milosevic (reftel).  His first foray into 
post-conflict reconstruction in Kosovo was the 1.6 million 
euro renovation of the Kosovo Assembly building interior, 
which took place under former Assembly Speaker Nexhat Daci's 
tenure and may come under scrutiny for procurement 
irregularities as part of an ongoing audit process.  In 
September 2004 Pacolli founded the Kosovo daily newspaper, 
Lajm Ekskluzive.  Pacolli's brother, Selim Pacolli, runs the 
paper, which gives Daci-related scandals scant coverage while 
regularly following corruption stories involving other 
politicians.  On the more reputable side, Pacolli is also the 
principal donor to the American University of Kosovo. 
 
AKR: From U.S. Lobbying Group to Party 
 
¶3. (SBU)  AKR began as a U.S.-based group lobbying for Kosovo 
independence; it was established in March 2006 and continues 
under the name New Kosovo Alliance.  The New Kosovo Alliance 
website (www.newkosovo.org) is in English only, designed for 
a Washington and international audience rather than potential 
suporters in Kosovo. 
 
¶4.  (U)  The AKR political party (slogan: "Enough Talk") 
applied to the OSCE for party status on April 18 and was 
registered two weeks later pursuant to OSCE rules.  In 
October, Pacolli mounted an extensive advertising campaign in 
advance of the convention, plastering the countryside with 
huge billboards featuring himself and the headings "Alliance 
for Stability," "Alliance for Employment," or "Alliance 
Against Corruption."  Pacolli told the convention that  he 
anticipates the AKR participating in national elections in 
¶2007. 
 
¶5. (SBU) Pacolli's main focus is his pledge of economic 
development.  The AKR economic platform promises to reduce 
unemployment, revitalize industry and agriculture, and 
strengthen the banking system.  Pacolli participated in an 
October 5 CSIS event in Washington on economic cooperation 
and investment opportunities in south-eastern Europe, as did 
Deputy PM Lutfi Haziri, Minister of Trade Bujar Dugolli, and 
others.  Pacolli also helped establish the Southeast Europe 
Economic Development (SEED) Foundation. 
 
Autocratic Convention 
 
¶6. (C) The convention itself was hardly a study in democracy, 
as Pacolli brooked little debate or dissent.  The delegates 
elected him by a show of hands rather than by secret ballot, 
 
PRISTINA 00000989  002 OF 002 
 
 
and endorsed 31 members of the Steering Council, which then 
authorized Pacolli to hand-pick 20 others from experts in 
various fields, to reach the total of 51 members required by 
OSCE rules.  Delegates also approved the party platform 
without objection.  In the initial stages of the convention 
some delegates abstained from voting, but this ended when 
Pacolli asked for an explanation from an abstaining delegate. 
 Some delegates wanted to modify the party statute, but the 
working committee decided to deal with written revision 
proposals "at a later stage."  Though some delegates 
complained about the lack of openness in the process, little 
attention was paid to their remarks. 
 
¶7. (C)  Delegates included 15 representatives of the 
diaspora, 15 women, and 15 representing youth.  Guests and 
observers at the October 26 convention included former 
Assembly speaker Nexhat Daci's son, Daci's advisor Ahmet 
Alishani (later arrested October 31 on corruption charges 
related to the recent audit report on Daci's tenure as 
Assembly Speaker), and representatives from OSCE, the 
Albanian Liason Office, the Democratic Party of Kosovo (PDK), 
Alliance for the Future of Kosovo (AAK), the Justice Party 
(PD), the Liberal Party of Kosovo (PLK), the Turkish 
Democratic Party of Kosovo (KDTP), and the Green Party of 
Kosovo (PGJK).  Former Prime Minister and current ICTY 
indictee Ramush Haradinaj sent a letter of greeting, which 
was read aloud during the convention. 
 
¶8. (C)  Pacolli gave a wide-ranging speech accepting the 
party's nomination, arguing that Kosovo should be a 
presidential republic, and depicted AKR's goals as economic 
development and fighting corruption in politics.  He said 
Kosovars can only restore their dignity through hard work, 
and cited his own wealth as a sign that Kosovars could trust 
him not to steal from the government budget.  He claimed many 
international businessmen have promised him they will invest 
in Kosovo, and also said Russia would be constructive on 
Kosovo status, which he asserted would be resolved by March 
¶2007.  Pacolli complained that despite being a major 
employer, he was never consulted by Kosovo politicians, and 
also incorrectly told delegates and observers that the State 
Department had no Kosovo desk prior to his lobbying efforts. 
 
Comment 
 
¶9. (C) Despite Pacolli's wealth, it is unlikely that the AKR 
will have an immediate impact -- as a party -- in Kosovo 
politics.  Thus far, Pacolli has been unwilling to insert 
himself directly into the political scene, though he is 
likely bankrolling Daci's current efforts to take control of 
the ruling LDK.  Both for his money and his links to Daci, 
Pacolli bears watching.  However, given his reported unsavory 
business connections, we will continue to do so from a 
distance.  END COMMENT. 
 
¶10. (SBU) U.S. Office Pristina clears this cable in its 
entirety for release to U.N. Special Envoy Martti Ahtisaari. 
KAIDANOW