Saturday 14 December 2013

[wanabidii] Re: WIKILEAKS ON TANZANIA

Hivi balozi retzer alikuwa na maslahi gani? Dili lilikuwa kati ya mataka na boeing, mara wameingia kwa maua na lufunjo! Pamoja na kuambiwa na chenge hatuna hela bado wanasema watatutafutia mkopo! Sasa dili limebuma wananza kuleta madai ya rushwa! Kweli yankee haina rafiki wa kudumu.

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------Original message------
From: <brandonshemm@gmail.com>
To: <wanabidii@googlegroups.com>
Date: Friday, December 13, 2013 9:08:40 AM GMT-0800
Subject: [wanabidii] Re: WIKILEAKS ON TANZANIA

On Monday, January 3, 2011 4:01:34 PM UTC+3, Ulanga Ally wrote:
> Diplomats Help Push Sales of Jetliners on the Global Market
>
> Source: New York Times 2 January 2011
>
>
>
> Summary Boeing executives, at times, are pressed by foreign government
>
> officials and airline executives to hire "agents" or other
>
> intermediaries to help deliver a sale. Typically, these agents ask for
>
> some kind of a commission to make introductions to officials running
>
> the competition. Boeing faced such a request in Tanzania in 2007, as
>
> it was bidding on a relatively small contract to modernize the Air
>
> Tanzania fleet. It was already concerned, as the bidding began, that
>
> AirBus had an inside track. Boeing officials refused to hire the agent
>
> and reported the request to the State Department. Air Tanzania was
>
> shut down by aviation safety authorities about a year after this
>
> exchange.
>
>
>
> Date 2007-09-13 11:25:00
>
>
>
> Source Embassy Dar Es Salaam
>
> Classification CONFIDENTIAL
>
> C O N F I D E N T I A L SECTION 01 OF 02 DAR ES SALAAM 001249
>
> SIPDIS
>
> SIPDIS
>
> DEPT FOR AF/E RMEYERS, SHAMILTON
>
> AF/EPS FOR THASTINGS, AF/EB
>
> PASS TO DEPARTMENT OF COMMERCE FOR ITA ALSO PASS TO MCC FOR MKAVANAGH,
>
> GBREVNOV NAIROBI FOR FCS
>
> E.O. 12958: DECL: 09/13/2017
>
> TAGS: ETRD, ECON, PGOV, BEXP, TZ
>
>
>
> SUBJECT: BOEING AND AIR TANZANIA: THE STRUGGLE TO ENSURE TRANSPARENCY
>
> AND A LEVEL PLAYING FIELD
>
> REF: DAR ES SALAAM 1074
>
> Classified By: Deputy Chief of Mission D. Purnell Delly for reasons
>
> 1.4 b and d.
>
>
>
> SUMMARY
>
> --------
>
> 1. (C) As Air Tanzania shops for new airplanes for its aging fleet, we
>
> remain troubled by separate press reports, quoting Air Tanzania
>
> leadership and most recently the Minister of Infrastructure, that a
>
> decision has been made in favor of Airbus. This decision would have
>
> been made without any serious negotiations with Boeing. We have
>
> actively engaged at the highest reaches of this government, and for
>
> the moment halted the rush to Airbus and opened a window that Boeing
>
> intends to exploit. Air Tanzania now seems to be seriously evaluating
>
> the leasing and sale options offered by Boeing.
>
>
>
> But we do not believe we are out of the woods, in view of early
>
> efforts to pressure Boeing to hire an "agent," and subsequent rumors
>
> that China is tying aid to purchase of
>
> Airbuses in order to give business to the joint manufacturing facility
>
> being built in China. Ambassador Green raised MCC, the importance of
>
> transparency to the investment climate, and a level playing field for
>
> Boeing in his presentation of credentials to President Kikwete on
>
> September 12. Earlier the DCM had called on the Infrastructure
>
> Minister and spoken with a close advisor to the President underscoring
>
> the same points. We will continue to press hard not only on behalf of
>
> Boeing, but the importance of transparency and a level playing field
>
> to the positive investment climate Kikwete is working to create.
>
>
>
> END SUMMARY.
>
>
>
> 2. (SBU) Air Tanzania plans to replace its aging fleet with newer,
>
> more efficient aircraft, and has solicited proposals from Boeing and
>
> Airbus. In June 2007, Boeing submitted a request for advocacy through
>
> the Department of Commerce's International Trade Administration, and
>
> Ambassador Retzer, the DCM, and EconCouns met with Rob Faye, Regional
>
> Director of Sales for Boeing Commercial Airplanes, on several
>
> occasions.
>
>
>
> Boeing's early dealings with top officials of the airline beginning in
>
> June suggested to Post that the company's fear of outside influence or
>
> corruption might be legitimate (reftel).
>
>
>
> 3. (C) Subsequent to meetings with Faye, the DCM raised the issue of
>
> Air Tanzania's dealings with Boeing and Airbus in conversations with a
>
> close advisor to President Jakaya Kikwete. The DCM specifically noted
>
> Air Tanzania Managing Director and CEO, David Mattaka's unusual
>
> "suggestion" that Faye should contact a wealthy South Asian hotelier,
>
> who subsequently suggested to Faye that he would need his services to
>
> open the right doors in government. Faye flatly refused, responding
>
> that Boeing does not use "agents" in Tanzania or elsewhere. (Comment:
>
> "Agents" and steep "commissions" have been at the heart of several
>
> corruption scandals here, including a BAE radar deal in which the GOT
>
> paid a 31 percent commission to a Tanzanian agent, much of which ended
>
> up in Swiss bank accounts, according to a UK Parliamentary
>
> investigation. Despite the fact that the UK shared this evidence with
>
> Tanzania's corruption board, no evident action has been taken. End
>
> Comment.) The presidential advisor later got back to the DCM, telling
>
> him that President Kikwete was "incensed" upon learning that senior
>
> Air Tanzania officials might be intending to profit personally from
>
> the deal.
>
>
>
> 4. (SBU) On August 9, Boeing's Faye met with Maua Daftari, Deputy
>
> Minister of Infrastructure, and Dr. Bartholomew Rufunjo, Director of
>
> Transport and Communications in the Ministry of Infrastructure (the
>
> Ministry that makes all financial decisions regarding Air Tanzania).
>
> Faye reported his meetings with both Daftari and Rufunjo were
>
> promising.
>
>
>
> Both officials mentioned more than once the importance of a fair and
>
> level acquisition process for Air Tanzania's development. David
>
> Mattaka, CEO of Air Tanzania, went out of his way to tell Faye on
>
> August 10 that Air Tanzania did not use agents. Mattaka repeated this
>
> statement during a meeting between Faye and the Air Tanzania board of
>
> directors. Faye reported that it was apparent that there had been some
>
> communication with the Ministry, presumably from State House, to
>
> ensure there would be no "go-betweens" in Air Tanzania's dealings with
>
> Boeing. On the sidelines, Mattaka mentioned to Faye that he thought
>
> the pressure was originating with the U.S. Embassy.
>
>
>
> DAR ES SAL 00001249 002 OF 002
>
>
>
> 5. (U) Ambassador Retzer forcefully raised the issue of combating
>
> corruption in his last public speech beforebdeparting Post on August
>
> 31. On September 2, forty-eight hours after Retzer departed country,
>
> the Tanzanian press reported for the second time that Air Tanzania was
>
> in the process of procuring eight Airbus planes, and extensively
>
> quoted Tanzanian Minister of Infrastructure, Andrew Chenge.
>
> We did not view the timing of the second announcement -- on the heels
>
> of Retzer's departure and before Ambassador Green had arrived and been
>
> credentialed -- as a coincidence.
>
>
>
> 6. (C) On September 7, the DCM and EconOff met with Minister Chenge.
>
> The DCM began by raising President Kikwete's upcoming trip to the
>
> United States and his plan to take a large business delegation.
>
> Kikwete would be marketing Tanzania as a prime location to trade and
>
> invest. It was important, therefore, that a major U.S. corporation
>
> like Boeing compete on a level playing field with Airbus, so its
>
> message to the U.S. business community would echo Kikwete's message.
>
> The DCM said Boeing and the Embassy had been confused by recent press
>
> reports regarding Air Tanzania's acquisition of new aircraft, and
>
> asked Chenge to clarify the status of negotiations.
>
>
>
> 7. (C) Chenge said contrary to his purported statements to the
>
> Tanzanian press, no final decision had been made on whether Air
>
> Tanzania would acquire Airbus or Boeing airplanes. The first decision
>
> was what type of airplanes to buy, and Boeing was the obvious choice
>
> since Air Tanzania already owned and maintained several Boeing
>
> airplanes.
>
>
>
> However, the issue of financing was also a primary concern due to a
>
> lack of government funding for the new aircraft. He stated that he
>
> could say "with certainty" that no decision has been made, but his
>
> Ministry was "very cautious on how to proceed because (they) don,t
>
> have the money." He said he understood Boeing could help open doors to
>
> financing possibilities, but "certain deadlines" needed to be met. The
>
> DCM stressed that regardless of the outcome, the Embassy wants to see
>
> that Air Tanzania is engaged in fair and transparent negotiations. He
>
> pointed out that Tanzania would benefit from giving Boeing the chance
>
> to underbid Airbus.
>
>
>
> 8. (C) The DCM ended the meeting by mentioning the upcoming vote on
>
> the Millennium Challenge Corporation (MCC) Compact for Tanzania, and
>
> the importance of transparency to sustaining any Compact that
>
> eventually would be signed. On the way out, Chenge,s staffer told the
>
> DCM that he was aware that Chenge had "misspoken" and been "misquoted"
>
> in the press, and that his office had already received several calls
>
> for clarification. (Comment: We think one of the calls to Chenge's
>
> office may have come from State House. End Comment)
>
>
>
> -------
>
>
>
> 9. (C) Although Air Tanzania is a small airline, looking to expand its
>
> fleet of two Boeing 737's to a fleet of about 10 planes, this deal has
>
> the potential to result in USD 537 million in sales for Boeing. Boeing
>
> is ready to offer Air Tanzania a number of capacity-building services
>
> to enable the airline to better serve the Tanzanian public. More
>
> broadly, if done right, the deal can reinforce the impression that
>
> Tanzania is a promising place to invest. Done wrongly, it can
>
> reinforce impressions that have been building here for
>
> the past 18 months that this is a government without the political
>
> will to tackle senior-level corruption. To us, reinforcing the view
>
> that Tanzania is a positive place to invest is almost as important as
>
> ensuring one of America's premier private sector "champions" is
>
> accorded the transparency and level playing field it is due. We remain
>
> concerned, however, in part due to rumors that the Chinese have tied
>
> aid to buying Airbus. We will continue to monitor this case closely,
>
> intervening decisively with the government when necessary.
>
>
>
> Destination
>
> VZCZCXRO6390
>
> PP RUEHDBU RUEHDT RUEHKN RUEHLMC RUEHMJ RUEHMR RUEHPB
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> DE RUEHDR #1249/01 2561125
>
> ZNY CCCCC ZZH
>
> P 131125Z SEP 07
>
> FM AMEMBASSY DAR ES SALAAM
>
> TO RUEHC/SECSTATE WASHDC PRIORITY 6752
>
> INFO RUCNCLM/MCC CANDIDATE COUNTRY COLLECTIVE PRIORITY
>
> RUEHNR/AMEMBASSY NAIROBI PRIORITY 0780
>
> RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

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