VZCZCXYZ0006
OO RUEHWEB

DE RUEHRH #1066/01 2291154
ZNR UUUUU ZZH
O 171154Z AUG 09
FM AMEMBASSY RIYADH
TO SECSTATE WASHDC IMMEDIATE 1399

UNCLAS RIYADH 001066 
 
SENSITIVE 
SIPDIS 
 
PM/DTCC - BLUE LANTERN COORDINATOR 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC SA
SUBJECT: SAUDI ARABIA RESPONSE TO BLUE LANTERN FOR LICENSE 
05014165 
 
REF: A. STATE 37284 
     ¶B. (06) RIYADH 07449 
 
SUMMARY 
-------- 
 
¶1. Post conducted an end use check on license number 5014165 
involving the Saudi Ministry of Defense (MOD) and Al Raha 
Group for Technical Services (RGTS). Post concluded that RGTS 
is a well known company and a reliable recipient of USML 
items. END SUMMARY. 
 
 
REFTEL Questions 
---------------- 
 
¶2. Does the company have supporting documentation for this 
proposed transaction? 
 
-- Yes, RGTS has supporting documentation. All requirements 
for purchases of F15 and C130 items are listed in contracts 
issued by the US Government, or for items requested by 
requisitions from Royal Saudi Air Force (RSAF). RGTS 
requisition requirements from RSAF require approval for 
purchase by the US Government Procurement Contracting Officer 
(PCO) or Administrative Contracting Officer (ACO). 
 
What role will Bin Hassoun Int'l Trade Est. and Fast Balance 
Office for Salvation Customs play in the proposed transaction? 
 
-- These are two of many companies that process items through 
Saudi customs. Bin Hassoun Intl Trade Est. handles all ocean 
clearances at Dammam and Fast Balance Office for Salvation 
Customs handles clearances at King Khaled Intl Airport 
Riyadh. 
 
Does the company have secure facilities and proper accounting 
and security procedures for handling sensitive USML items? 
 
-- RGTS has security warehouses with 24/7 security and all 
items are tracked in and out of the facilities to the end 
user. 
 
What is the exact end-use for the USML items? Will Al Raha 
Group for Technical Services retain positive control over the 
F-15 and C-130 component parts at all times? 
 
-- The end user for RGTS is the Royal Saudi Air Force (RSAF). 
RGTS has control of parts up until they are delivered to the 
RSAF. 
 
When was the company established and who are it's principals? 
 
-- RGTS was established in 1986 as a technical services 
company. The principal officer in the company is Yahya Essa 
Al Saadi Alzahrani, Brig. General RSAF (Retired), Chief 
Executive Officer. 
 
What is the nature of it's business -- what type of items 
does it handle, does it serve as a broker? 
 
-- Al Raha Group for Technical Services was established as a 
technical services company that quickly expanded into other 
fields. Today, it specializes in Supply Chain Management 
(SCM), services and repair and refurbishment of Aerospace 
Ground Support Equipment (AGE), and Special Purpose Vehicles 
(SPV), Integrated Logistics Support (ILS), systems design and 
integration and training. RGTS supplies a wide variety of 
parts that are needed in the repair of RSAF F-15, C-130, and 
support equipment used to support these aircraft. RGTS is a 
license broker for several companies and has active DS-2032 
Statement of Registration with the Department of State. 
 
What types of organizations are among its typical customers 
and where are the customers located? 
 
-- RGTS primary customer is the RSAF through Foreign Military 
Sale (FMS) Contracts issued by the US Government WR-ALC/830TH 
ACSG/GFKA at Robins Air Force Base. 
 
 
Security Assessment 
------------------- 
 
¶3. Following a site visit by Pol/Mil off and the Regional 
Security Office (RSO), RSO provided the following security 
assessment of RGTS' operations: 
 
Four members of the RGTS team met with us during our visit: 
Yahya Al Saadi, Chief Executive Officer; Nadim Darwish 
 
Shilleh, Internal Audit Manager; Hilal Abdul Khalek, 
Assistant Facility Manager; and Raymond Proctor, Procurement 
Manager. The group explained that they have been in business 
since 1986 and have not had any major security incidents 
since inception. RGTS has one headquarters office, five 
warehouses and six workshop locations in various cities 
within the Kingdom of Saudi Arabia. 
 
During the meeting and subsequent tour of the headquarters 
facility Embassy security officer determined that the Al Raha 
Group has in place the following security measures to 
safeguard its property and interests: 
 
-- Utilization of the Safety and Security Company which is a 
local contract guard company that provides a 24 hour unarmed 
security presence at all RGTS facilities. 
 
--RGTS provides written guard orders for each of its 
locations. 
 
-- RGTS employs a visitor's access control system by having 
the local guard log all visitors coming onto the properties 
into a manifest and issuing a visitor's badge. 
 
-- Utilization of surveillance camera systems that are 
monitored on-site by the guard on duty and remotely by the 
headquarters office. The cameras monitor all activities 
inside and outside RGTS' locations. 
 
-- Background screening and vetting of potential employees in 
the application process. 
 
Based on the listed information and site visit the Embassy 
found that RGTS has security measures in place that are in 
keeping with local Saudi Arabian security practices and 
customs. 
 
 
Business Operation Assessment 
----------------------------- 
 
¶4. The US Commercial Service at post provided the following 
assessment of the company's reputation: 
 
Al Raha Group for Technical services is a well known company 
to US Embassy Riyadh's Commercial Service and is owned by His 
Royal Highness, Khalid bin Sultan, Deputy Minister of Defense 
and Aviation for Military Affairs. According to US Commercial 
Service (USCS) trade specialist, no derogatory information 
was found on RGTS. RGTS is the agent/representative for GE 
aircraft engines in Saudi Arabia. USCS trade specialist 
regards RGTS to be a reliable recipient of USML items. USCS 
completed an International Company Profile on RGTS which will 
be forwarded to PM/DTCC via email. 
 
U.S. Training Mission Indpedent Confirmation 
-------------------------------------------- 
 
¶5. The U.S. Training Mission (USMTM) in Saudi Arabia, which 
works with RSAF, confirmed that RGTS supplies RSAF with F15 
and C130 parts as part of a larger Direct Commercial Sales 
(DCS) case. The case includes over 8,000 parts, thus USMTM 
was unable to confirm that specific parts included in Blue 
Lantern license number 05014165 were delivered without having 
specific part numbers. USMTM did, however, make direct 
contact with RGTS in regards to this Blue Lantern in order to 
confirm that RGTS is currently a vendor to RSAF. 
 
 
COMMENT 
------- 
 
¶6. Based on information provided by the RSO, USCS, and USMTM, 
 Pol/Mil is of the view that the above mentioned steps and 
procedures constitute a system that maintains adequate 
security of stored items and tracks movement of requisitioned 
items from storage location to end user. By all indications 
that Pol/Mil has received, RGTS is a reputable and reliable 
local company. We also note that RGTS was the subject of a 
previous Blue Lantern check (REFTEL B) in 2006, at which time 
Pol/Mil provided a favorable report after tracking a purchase 
order to the end user. 
ERDMAN