VZCZCXYZ0030
RR RUEHWEB

DE RUEHBU #2032/01 2841644
ZNR UUUUU ZZH
R 111644Z OCT 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 9463
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUEHAC/AMEMBASSY ASUNCION 6628
RUEHMN/AMEMBASSY MONTEVIDEO 6837
RUEHSG/AMEMBASSY SANTIAGO 0839
RUEHBR/AMEMBASSY BRASILIA 6505
RUEHPE/AMEMBASSY LIMA 2186
RUEHBO/AMEMBASSY BOGOTA 1657
RUEHLP/AMEMBASSY LA PAZ OCT CARACAS 1545
RUEHMD/AMEMBASSY MADRID 1923
RUEHMT/AMCONSUL MONTREAL 0032

UNCLAS BUENOS AIRES 002032 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
AMCONSUL MONTREAL FOR US MISSION TO ICAO LAURA FAUX-GABLE 
FAA NATIONAL HQ FOR CECILIA CAPESTANY 
TSA HQ FOR KIP HAWLEY AND JILLENE MACCRERRY 
 
SIPDIS 
PASS NSC FOR MICHAEL SMART 
TRANSPORTATION FOR BRIAN HEDBERG 
COMMERCE FOR EUGENE ALFORD 
TREASURY FOR MATT MALLOY 
PASS FED BOARD OF GOVERNORS FOR PATRICE ROBITAILLE 
US SOUTHCOM FOR POLAD 
 
E.O. 12958: N/A 
TAGS: EAIR PGOV ECON EFIN KCOR ICAO AR
SUBJECT: "Brinks Job" Theft at Argentina Airport: Another Black Eye 
for Argentina 
 
Ref: (A) Buenos Aires 1947, (B) Buenos Aires 1629 
 
¶1. (SBU) Summary:  The October 4 United Airlines flight from 
Washington to Buenos Aires was the scene of a highly publicized 
theft of $80,000 in cash, stolen within a U.S.-based Brinks 
container, part of a larger U.S. Federal Reserve Bank transfer to 
the Central Bank of Argentina.  Government of Argentina (GOA) 
airport police immediately executed a court-sanctioned search of the 
Argentine ground handling company, Intercargo, suspected of 
involvement.  The search of hundreds of employee lockers turned up a 
large cache of jewelry, watches, cash, and electronic goods, all 
presumably stolen from other flights - but not the missing $80,000. 
In protest of this "arbitrary and unlawful" search, Intercargo 
employees staged a six-hour strike that same afternoon, affecting 
some 5,000 passengers and dozens of domestic and international 
flights.  Two Intercargo employees were detained, and granted bail 
on October 9.  There is no/no U.S. Government jurisdiction in this 
case.  As of October 11, the money has still not been recovered. 
This incident adds to a long list of alleged incidents at Buenos 
Aires's two airports, and highlights the poor GOA airport 
intra-agency coordination.  While top airport security officials 
have publicly spoken out about the severe problems, unfortunately, 
this embarrassing episode will probably be soon forgotten.  We are 
skeptical about any likely consequences in terms of punishment or 
improved security procedures.  Ambassador will be meeting October 22 
with the airport security police chief to seek his views on this and 
other airport security issues.  Embassy is also considering 
approaching the MFA and other relevant ministries to flag concerns 
about the pattern of thefts from travelers.  End summary. 
 
------------------- 
Brazen cash robbery 
------------------- 
 
¶2. (SBU) According to the Federal Reserve and GOA contacts, this 
U.S. Fed-Argentine Central Bank was a routine transfer.  Media 
reports estimate that it totaled about $350 million.  Soon after 
this Washington-to-Buenos Aires flight landed, GOA customs officials 
detected an enormous gash in the container holding the cash.  GOA 
customs also provided Post photographs of the damage.  The cash 
reportedly was bundled in a series of smaller boxes, and customs and 
media reported that one of these, containing $80,000, was stolen. 
GOA officials also confirmed to Post that the money had been stolen 
in Buenos Aires, and not in Washington, basing this conclusion on 
reports from the Federal Reserve and Brinks, sent to GOA customs, 
confirming that the cargo was intact when it left Washington.  The 
United Airlines country manager independently confirmed this 
sequence of events, and also privately expressed "surprise" at the 
"low level" of security and protection to safeguard delivery of so 
much currency.  He hazarded a guess that the reason "only" $80,000 
was stolen was that the robber might have had very little time to 
steal, and had to make a quick getaway.  By late morning of October 
4, this theft was already widely reported. 
 
--------------------------------------------- -------- 
State-Owned Ground Handling Company Intercargo Fingered 
--------------------------------------------- -------- 
 
¶3. (SBU) According to the Airport Security Police (PSA), Embassy 
contacts, and media reports, employees from Intercargo were 
immediately suspected of the crime.  GOA Customs also determined 
that Intercargo agents had been the first people to enter the plane. 
 Intercargo is the GOA-owned ground handling company jointly 
controlled by the Ministries of Defense and Economy, with a 
notorious reputation for its employees stealing valuable items from 
 
passengers' checked-in baggage.  Post contacts have long complained 
about Intercargo, in terms of its theft, as well as their high price 
and poor service.  Most airlines, domestic and international, are 
forced to use this monopoly. 
 
--------------------------------------------- -------- 
Search of employees' lockers unveils a "duty free shop" of stolen 
goods - but no $80,000 
--------------------------------------------- -------- 
 
¶4. (SBU) The PSA soon performed a court-sanctioned search of about 
450 Intercargo employee lockers and desks at the airport.  Although 
the missing $80,000 was not recovered (and still has not been as of 
October 11), a large quantity of high-value items - the media called 
it a "duty free shop" of high-value goods - jewelry, watches, cash, 
cameras, electronic goods, perfume, alcohol and wallets, likely 
stolen from passengers' baggage - was reportedly found.  As a 
result, twelve Intercargo employees were temporarily detained and 
will reportedly face charges of theft. 
 
--------------------------------------------- -------- 
Intercargo employees react with strike, paralyzing flights 
--------------------------------------------- -------- 
 
¶5. (SBU) Responding to the PSA raid, outraged Intercargo employees 
and its union staged an immediate strike, beginning at about 2 pm on 
Thursday, October 4, affecting some 5,000 passengers and dozens of 
domestic and international flights, in Ezeiza, Buenos Aires-based 
Aeroparque airport, and in the second largest city of Cordoba, until 
a Ministry of Labor-mandated mediation order restored employees to 
their work at about 8 pm.  The strike caused follow-on delays to 
continue until the following day.  As strange as it might sound, 
Intercargo employees and its union expressed outrage about this 
court-approved search of employee lockers, and complained of PSA's 
"arbitrary treatment and human rights abuses," and that PSA 
contained agents whose ranks included "agents from the former 
military dictatorship." 
 
--------------------------------------------- -------- 
Two Intercargo employees detained, later granted bail;   Intercargo 
a "criminal organization" 
--------------------------------------------- -------- 
 
¶6. (SBU) Two Intercargo employees, accused of the theft, remained 
detained until October 9, being granted bail for about $7,500 each. 
One of those detained is reportedly known as "the Surgeon," noted in 
media reports for his skill in carving out valuable items from 
checked baggage.  According to these same Post contacts (and reftel 
B), many Intercargo employees have criminal records and constitute a 
"mafia" that most GOA law enforcement and aviation officials are 
reluctant or ill-equipped to confront. 
 
¶7. (U) In the wake of this robbery, top officials of the PSA 
described Ezeiza airport as being controlled by a "criminal 
organization," dedicated to "stealing valuables, and composed of 
well-organized groups."  PSA chief Marcelo Sain, in rare interviews, 
was uncharacteristically explicit and forceful: "this is a case of 
theft, pure and simple," in response to which "Intercargo is 
drumming up a campaign of PSA persecution against its employees." 
He said that theft and the subsequent discovery of valuables in 
Intercargo employees' lockers all indicated that "these were not the 
actions of a few individuals, but of a highly organized group." 
This is the first time since the force's creation in 2005 that PSA 
officials have spoken out so clearly on these problems. 
 
-------------------- 
No U.S. jurisdiction 
-------------------- 
 
¶8. (SBU) According to U.S. and GOA law enforcement officials, there 
is no/no U.S. jurisdiction in this matter, as Brinks took possession 
and legal responsibility for this money from the U.S. Federal 
Reserve in the United States on October 3.  Brinks has the 
responsibility for the money's delivery - and its insurance - for 
any such losses. 
 
--------------------------------------------- -------- 
Case joins long list of alleged infractions at "mafia" airport, 
including PSA and others 
--------------------------------------------- -------- 
 
¶9. (SBU) This case joins a long list of similar cases of theft and 
malfeasance at Argentina's major airports.  These incidents have 
taken a heavy toll on Argentina's image in terms of tourism, trade 
and investment.  As discussed in ref A, Argentina was rudely 
reminded last week of its poor international standing in terms of 
corruption and business-friendly environment.  Airport employee 
thefts are regularly reported in the media.  In 2007 alone, a 
partial list of infractions includes 20 employees from PSA, 31 from 
Intercargo, 17 from private security firms, 13 from Customs and one 
from Immigration.  In August, a popular television investigative 
report, with the help of a hidden camera, showed employees from 
Intercargo and a private security company, while ostensibly 
inspecting baggage passing through scanners, identifying and 
stealing high-value contents.  On October 9, the most recent 
episode, and five days after this theft of $80,000, three more 
private security employees at the Buenos Aires Aeroparque airport 
were caught stealing from the contents of bags. 
 
--------------------------------------------- -------- 
Highlights poor GOA coordination at international airport 
--------------------------------------------- -------- 
 
¶10. (SBU) Airport users have long complained about the entire 
structure of Ezeiza International Airport (reftel B), charging 
disorganization, poor and pricy services, overcrowding, strike-prone 
unions, and theft.  Argentina's aviation structure is plagued with a 
hodgepodge of competing GOA agencies exercising authority.  The 
Ministries of Defense, Interior, Planning and Economy all exercise 
some aspect of control: civil aviation oversight, airport police, 
Intercargo customs and immigration.  In addition, the nominally 
independent National Airports Regulator oversees the airports 
concessionaire Aeropuertos Argentina 2000.  All these airport 
entities have long been the subject of complaints for infighting and 
lack of cooperation. 
 
--------------------------------------------- -------- 
Comment: A common occurrence with likely no consequence; Ambassador 
to seek 
--------------------------------------------- -------- 
 
¶11. (SBU) Unfortunately, this event is such a normal occurrence here 
that, a few days after the event and initial media coverage, 
interest has already waned.  The two Intercargo employee suspects 
have been granted bail, and absent hard evidence (finding the 
missing $80,000), what will likely play out is a lengthy and 
fruitless legal process.  The suspects may well escape punishment. 
It remains to be seen if there will be increased GOA airport 
security measures.  This latest crime case will likely amount to 
just one more of a thousand cuts to Argentina's already damaged 
 
reputation in terms of rule of law, security, and tourism. 
Ambassador's October 22 meeting with PSA chief Sain will focus on 
this case and other airport security concerns, especially as they 
relate to the protection of visiting American citizens.  Unless 
Washington sees reason not to do so, Ambassador will seek other 
opportunities with senior officials in the Foreign Affairs, 
Interior, Economy and Defense Ministries to raise concerns about 
this pattern of thefts which affect U.S. travelers, among others. 
End comment. 
 
WAYNE