VZCZCXRO0895
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHAN #0763/01 3100909
ZNR UUUUU ZZH
R 060909Z NOV 09
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC 2990
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEHZO/AFRICAN UNION COLLECTIVE

UNCLAS SECTION 01 OF 02 ANTANANARIVO 000763 
 
SENSITIVE 
SIPDIS 
 
STATE FOR AF/E - MBEYZEROV - AND OES 
USDOC FOR RTELCHIN 
TREASURY FOR FBOYE 
ADDIS FOR KBAUMAN AND IHERSH 
USAID FOR AFR/EA - CTHOMPSON 
 
E.O. 12958: N/A 
TAGS: SENV ETTC ECON ETRD MA
SUBJECT: UPDATE ON ILLEGAL LOGGING IN MADAGASCAR 
 
¶1. (SBU) Summary:  The forestry sector in Madagascar continues to be 
decimated by rampant unsustainable and illegal practices. 
Insufficient monitoring of the situation makes it difficult to 
ascertain the true dimensions of the problem, but a recent report 
issued by scientists associated with Missiouri Botanical Garden 
indicate that at least 871 containers of rosewood have left the 
country since April, and at least another 271 containers are 
awaiting export in one port in northern Madagascar.  Between 30,000 
and 65,000 precious hardwood trees have been cut in two national 
parks alone, deteriorating nearly 6,500 hectares of what should be 
protected forest and jeopardizing the livelihoods of local 
communities depending on the forest.  An inter-ministerial order to 
export unprocessed precious hardwoods, combined with extremely 
limited capacity and seemingly inconsistent political will at 
multiple levels of the Government of Madagascar, have created an 
enabling environment for illicit behavior that has long-term 
economic, environmental and social consequences.  While the 
Government of Madagascar issued a new inter-ministerial order 
requiring documentation of precious woods destined for export and 
has also seized illegal stocks of wood in recent weeks, these 
efforts are inconsistent and ineffective to date to address the 
magnitude of the problem.  The absence of respect for rule of law, 
as reflected in the forestry sector, and ongoing illicit behavior is 
of significant concern.  End Summary. 
¶2. (U) On September 21, 2009 an inter-ministerial decree was issued 
for the exceptional export of non-processed precious woods from 
Madagascar.  The decree authorized up to 25 containers each of 
precious woods, including rosewood, ebony and palissandre, for 13 
operators.  Wood was to come from existing stocks and each operator 
must pay 72 million Ariary (approximately USD 36,000) per container 
to be able to export the wood.  While estimates vary, according to 
Missouri Botanical Gardens and other conservation groups, operators 
make approximately USD 200,000 profit per container.  Two-thirds of 
the fees paid by operators (ca. USD 24,000) benefit the central 
treasury of the GOM, with the remaining third destined for a new 
fund managed by an inter-ministerial task force.  Details on the 
fund and its administration are not easily obtained.  Knowledgeable 
local and international conservation organizations operating in 
Madagascar indicate that the amount of wood to be exported exceeds 
the amount that should be available for legitimately stocked wood 
(e.g. hard woods that fell during cyclones), as all cutting of these 
species has been completely suspended since 2002. Insufficient 
surveillance, procedures and controls make corruption, fraud and 
illegal behavior highly likely.  Furthermore, the inter-ministerial 
order appears to directly contradict numerous long-standing laws and 
regulations passed to promote a sustainable forestry sector in 
Madagascar.  Numerous press reports in local national papers have 
decried the illegal behavior and loss of valuable natural assets 
that will no longer be available to support the struggling economy 
or the development needs of the Malagasy people. 
¶3. (U) On October 5, 2009 a second inter-ministerial decree was 
issued to establish procedures that must be followed to grant export 
permits.  This includes required documentation on source, volume, 
quantity, destination and other factors.  The decree states that 
designated task force and forestry service investigators will 
attempt to verify paperwork and stocks.  While making these steps 
explicit is valid, the GOM does not appear to have the capacity or 
the consistent will to effectively enforce the procedures.  The 
decree also gave the government authority to seize improperly 
documented wood.  In mid-October the GOM reported that it seized 91 
containers of illegal precious wood that were destined for 
Mauritius.  Under standing laws of Madagascar, the GOM has the 
authority to auction off this wood.  The status of this wood, or 
what the GOM plans to do with it is currently not clear.  Also in 
October, the Director of Environment and Forests in the northern 
district of Sava, where much of the nation's precious woods can be 
found, was sacked due to evidence of his complicity in illegal 
forestry activities.  Intimidation of other forestry and national 
parks staff who are trying to crack down on the problem has also 
been reported for months. 
¶4. (SBU)  While it is difficult to truly get a sense of the 
magnitude of the problem, Missouri Botanical Gardens reports 
evidence that at least 271 containers are currently at one port in 
the north of Madagascar awaiting export.  Given the known hundreds 
of containers that have already left Madagascar, it is clear that 
there is illegal wood leaving the country. 
¶5. (U) Last week, civil society organizations, private banks and 
staff from the national park authority met in Antananarivo to 
discuss the growing problem of money laundering associated with 
illegal forestry activities.  The group indicated a limited capacity 
to address the problem, although the Malagasy financial intelligence 
unit (SAMIFIN) has reportedly frozen fourteen bank accounts. 
Associated illegal trafficking in other endangered species of flora 
 
ANTANANARI 00000763  002 OF 002 
 
 
and fauna has also been on the rise.  For example, Durrell Wildlife 
Trust is concerned by increased smuggling of endangered tortoises 
destined for Asian markets.  A ready-made infrastructure of poorly 
controlled export channels involving criminal elements and corrupt 
officials poses other risks for Madagascar.  Associated degradation 
and loss of biodiversity and detrimental impacts on vulnerable and 
poor rural communities is also of great concern. 
¶6. (SBU) Most of the illegal woods appear to be destined for China, 
according to preliminary observations from an investigation 
undertaken by Global Witness and the Environmental Investigation 
Agency.  Companies and operators have been identified, including one 
German company.  One American company has been named, and the US 
Fish and Wildlife Service is cooperating with other agencies to 
investigate the nature of the company's rosewood imports.  Recent 
updates to the Lacey Act require American companies to provide 
documentation of legal sources of imported plant materials.  The 
investigation will ascertain if any criminal acts have been 
committed.  In Madagascar, local civil society organizations are 
currently exploring options to bring a legal suit against the 
Government of Madagascar regarding the inter-ministerial order to 
export precious woods. 
¶7. (U) On November 4, 2009 the United States Congress passed a 
binding resolution introduced by Earl Blumenauer (D-Oregon) 
condemning the illegal plundering of natural resources in 
Madagascar.  The resolution calls for importing countries to 
intensify monitoring and inspection processes to ensure they do not 
contribute to demand for illegally sourced wood; action to be taken 
within Madagascar to stop illegal activities and bring those 
responsible to justice; and for democratic rule to be returned to 
the island. 
MARQUARDT