US lobbyist for Sudan indicted, Obama renews sanctions

By Wasil Ali

October 27, 2009 (WASHINGTON) – A US federal grand jury handed down an eight-count indictment for a former State department official accusing him of violating Sudan economic sanctions among other things, the Department of Justice (DOJ) announced today.

Robert Cabelly, the head and founder of a Washington D.C. based PR and lobbying firm called C/R International was also charged with money laundry, passport fraud and making false statements.

The DOJ said in a press release that if convicted, Cabelly could face up to 20 years in prison on each of the four counts of violating the Sudanese sanctions regulation, 20 years for the money laundering count, 10 years for the passport fraud, and five years each for the conspiracy and false statement counts.

The center of the charges leveled against Cabelly is lobbying on behalf of Sudan after he has informed the Office of Foreign Asset Control (OFAC) and the unit handling Foreign Agents Registration Act (FARA) within the DOJ, in 2006 that he terminated his lobbying contract with the government of Sudan.

Cabelly has obtained authorization in July 2005 to provide PR services for Khartoum with specific conditions requiring him not to engage in commercial activities that would benefit Sudan.

The exemption for the $530,000 per year contract drew outcry from US lawmakers particularly from then chairman of Human Rights Caucus Frank Wolf who blasted the move in a letter to the Secretary of State for allowing the waiver.

The court documents seen by Sudan Tribune allege that the official who served for a decade in the African bureau at the State department “conspired” with a US citizen living in Bahrain, a Middle Eastern businessman, and an official of the Government of Sudan who was also former Sudanese intelligence officer. Their names were not disclosed.

Prior to receiving his OFAC license, Cabelly is claimed to have continued to provide consulting services to Sudan through its embassy in Washington “related to government relations, public relations, the acquisition of surveillance technologies, and the development of its economy, including the petroleum industry”.

He sent an email to the Sudanese ambassador Khidir Haroun on July 13, 2005 asking for payment for his “unauthorized” work on behalf of Sudan prior to the OFAC permission.

“The difference of $70,000 would cover the work I have provided over the past 4 months. I hope Khartoum would agree that I provided excellent work for those 4 months. I would be paid off-shore in the Cook Island” Cabelly said in his email.

Almost three months after receiving the OFAC license, Cabelly signed a one-year contract with “a French oil company” for $90,000 plus expenses to provide consulting with respect to its petroleum business in Sudan.

The Wall Street Journal (WSJ) revealed that the French Oil Company is Total which was involved in a bitter dispute with British While Nile Oil Company over the exploration right in a key Sudan oil concession.

The DOJ said that Cabelly flew to Sudan in May 2006 after which he sent an invoice to Total for travel expense reimbursement on his trip to “Africa” and directed the payments to be made to an account in Cook Island in the name of “Northfield Holdings Incorporated”, a wholly owned subsidiary of C/R International.

His contract with Total was renewed five months later for 90,000 Euros rather than US dollars and deletion of all reference to Sudan which raised the eyebrows of an executive of the oil company, who met with Cabelly a month later.

Cabelly in his talks with the executive detailed his strategy for kicking out While Nile Oil Company saying he will enlist a Sudanese official for help to achieve this goal.

The DOJ allege that this account is contrary to a letter he sent to OFAC in which he said that he did not have any relationship with Total-Soudan.

The court documents also detail efforts made by Cabelly between October 2005 and December 2006 in conjunction with a Sudanese official and ex-intelligence officer, Khartoum based Advanced Petroleum Company in Sudan (APCO), two US consultancy firms and engineers and a UAE investor.

His role was to facilitate meeting with all the parties to secure agreements over oil exploration rights in Sudan and secure visas by Houston based engineers through his connections with the Sudanese embassy.

Cabelly is also alleged to have passed “sensitive” and “controlled” info to Khartoum on an unspecified African country through the request of the Sudanese ex-intelligence officer in December 2006 which he provided in January 2007 “for use by the government of Sudan, including members of the Sudanese intelligence service”.

A month later, the same Sudanese official sought Cabelly’s services to acquire aircraft(s) and helicopters for Sudan airways as well as vehicles and communications services to Sudan through a company named “Star Horizon Trading Est.” based in Bahrain.

The company appears to have been established to buy sophisticated equipment on behalf of Sudan that would otherwise be barred because of US sanctions.

Khartoum has frequently complained that its poor record in air safety is largely due to lack of spare parts for its aircrafts.

Cabelly also prepared a Memorandum of Understanding (MOU) in March 2007 between Sudan airways and the Bahrain aircraft acquisition company in which the latter “would provide commercial aircraft and helicopters for use by Sudan airways”.

In order to travel to Sudan without detection, Cabelly applied for a new passport in July 2006 and falsely claiming in his application that the last passport he had was dated back to 1998 when he had one issued in 2004.

Between 2006 and 2007, Cabelly presented the 2006 passport upon leaving and returning to the US but using the 2004 passport to obtain visas to travel to Sudan thus concealing his trips.

In August 2006, he applied for a Sudan visa identifying the purpose of his visit as “official business” and gave reference to the ex-Sudanese intelligence official with “Minister” in his title and the address of the “Office of the President”.

Upon return from a trip to Sudan in October 2006, Cabelly told the US Custom and Border Protection (CPB) officer that he traveled only to Bahrain and Germany and also stated that he had only $2,500 in cash when he had $32,409.

The money he carried was seized by US authorities as the rules prohibit carrying more than $10,000 upon entering. Cabelly informed a US citizen living in Bahrain of the incident who in turn asked him if the serial numbers on the seized money was checked by authorities. His response was that the money “could be from US, Sudan and Bahrain”.

Afterwards Cabelly worked with his accountants to find ways to move money from his offshore accounts to the US to pay bills “without being attributable to him”.

In 2007 he made another trip to Sudan but booked separate trips to Bahrain and Khartoum “to conceal his travel to and from Sudan”, the DOJ says.

Cabelly appeared in U.S. District Court in Washington on Tuesday and pleaded not guilty. He was released on his own recognizance, but will have to put up his Capitol Hill home as security for his bond, his attorney, Aitan Goelman told WSJ.

“He’s not guilty and looks forward to vindicating himself in court,” Mr. Goelman said in an interview.

He also faces a November 6 appearance in federal court. In the meantime, he cannot leave the Washington, D.C., area, cannot have a passport and must report weekly by phone to the court system.

US officials today hailed the indictment of Cabelly saying it sends out a warning to those who consider engaging in similar activities.

“Those who pursue their own personal gain at the expense of our nation’s trade embargoes can expect to be aggressively prosecuted,” said Acting U.S. Attorney Channing Phillips. “Our national security depends on strict enforcement of U.S. export laws such as the Sudanese Sanctions Regulations.”

“The activities detailed in this indictment – including facilitation of Sudanese oil transactions – would represent serious violations of U.S. sanctions law. We commend our federal law enforcement colleagues for their dedicated and collaborative efforts,” said Adam Szubin, Director of the Treasury Department’s OFAC.

The indictment come as the role of Sudan lobbyist in the US is highlighted including former Reagan administration aide Robert McFarlane, who later met with two of the Obama administration’s top policymakers on Sudan, according to documents obtained by The Washington Post.

In addition, Robert B. Crowe a lobbyist close to Senator John F. Kerry attempted to get Obama administration approval to represent Sudan but dropped the effort after The Washington Post publicized the plans.

The US administration is struggling with the negative public perception of its policy in Sudan by activists and observers. Last week a new policy on Sudan was rolled out by the Obama administration, after months of fierce internal debate offering incentives for the Sudanese government to end the violence and threatening stronger pressures if it does not.

Today Obama also signed an executive order renewing for another year the economic sanctions imposed on Sudan since 1997.

“Because the actions and policies of the Government of Sudan continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, the national emergency declared on November 3, 1997, as expanded on April 26, 2006, and with respect to which additional steps were taken on October 13, 2006, must continue in effect beyond November 3, 2009. Therefore, consistent with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency with respect to Sudan” the notice signed by Obama reads.

(ST)