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Viewing cable 09ANTANANARIVO2, Gulf Investment Group Influence In The Comoros

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Reference ID Created Released Classification Origin
09ANTANANARIVO2 2009-01-05 08:30 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Antananarivo
VZCZCXYZ0000
PP RUEHWEB

DE RUEHAN #0002 0050830
ZNR UUUUU ZZH (CCY ADX0169288 MSI8798 611)
P 050830Z JAN 09
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC PRIORITY 1926
INFO RUEHKU/AMEMBASSY KUWAIT 0006
RUEHFR/AMEMBASSY PARIS 1058
RHMFIUU/CJTF HOA
RUEAIIA/CIA WASHDC
UNCLAS ANTANANARIVO 000002 
 
SENSITIVE 
SIPDIS 
 
C O R R E C T E D  C O P Y //ADDING ADDRESSEE// 
 
DEPT FOR AF/E, AF/FO, INR/AA 
PARIS FOR AFRICA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON PREL EFIN CN
SUBJECT:  Gulf Investment Group Influence In The Comoros 
 
REF:  ANTAN 809 
 
1. (SBU)  ACTION REQUEST:  Post seeks insight from the Department 
into the background of Comoro Gulf Holdings and its principal 
officers:  Bashar Kiwan (French-Syrian), President; Ali Kazma, Vice 
President; Ahmed Jaroudi (Lebanese), Manager. 
END ACTION REQUEST. 
 
Investment Promotion 
- - - - - - - - - - - 
 
2. (SBU)  In recent months, the "Kuwait-based" Comoro Gulf Holdings 
(CGH) has ramped up its activities in the Comoros.  The long-awaited 
reopening of the Itsandra Hotel in Moroni (one of only two 
international hotels) in December, 2008, marked a tangible sign of 
CGH investment.  With its 265 euro/night bungalows, the Itsandra is 
hoped to become a destination for wealthy Gulf tourists, and 
investors.  Beyond the hotel, CGH has announced plans for a massive 
tourist village in the north of Grande Comore, an urban 
revitalization project in Moroni, and inter-island ferry ports.  The 
group has opened a banking operation in the Comoros and obtained a 
cell phone company license. 
 
3. (SBU)  While there is little tangible aside from the Itsandra 
Hotel, there is a lot of activity - CGH's top officials around town 
and on the front pages, accompanying would be investors or signing 
deals.  The company recently established a new headquarters office 
in a large villa compound outside Moroni.  On a given day, a dozen 
cars with "CGH" logos may be spotted around Moroni.  Whatever their 
ambitions, CGH has established a substantial, permanent presence in 
the Comoros, including ties to Comoran public and private elites. 
 
Political Activism 
- - - - - - - - - - 
 
 4. (SBU)  Comoro Gulf Holdings has been overt in its political 
support for President Sambi and the Union Government.  During the 
recent fuel shortages, the group reportedly made between USD three 
and five million in revolving credit available for petroleum 
imports.  After the March, 2008, military intervention to depose 
Colonel Bacar in Anjouan, posters of President Sambi, "father of 
national unity" appeared all over the country, with the CGH logo in 
the corner.  The group launched a newspaper, al-Balad, which mostly 
reprints pro-Sambi articles from the official al-Watwan paper and 
touts CGH activities. 
 
5. (SBU)  Most notably, CGH actively and openly lobbied for a 
controversial "economic citizenship law" that appeared to be 
rejected, then was passed at the National Assembly (REFTEL).  Prior 
to that vote, in October, six National Assembly deputies visited 
Kuwait at CGH expense for a fact-finding mission to hear from 
potential investors why the assurances of "economic citizenship" 
were crucial.  The deputies received laptops and other gifts; upon 
their return to the Comoros they all supported the law.  The local 
press reported that former National Assembly Secretary General, 
Aboubacar Said Salim, was hired by CGH soon after the vote. 
 
COMMENT: 
- - - - - 
 
6.  (SBU)  Taken at face value, CGH is a limited-funding promoter 
with a long-term vision of the Comoros as a Gulf tourist 
destination.  Given years of stagnant economic growth, it is 
unsurprising that President Sambi's government would welcome these 
investors.  Even the active promotion to force through the economic 
citizenship law could be viewed in terms of investment promotion and 
assurances.  Still, something does not add up and it is worth 
investigating whether CGH's growing influence in the Comoros is 
completely benign.  END COMMENT. 
 
STROMAYER