Published by Wikileaks & Bivol.bg
id: 90229 date: 12/20/2006 7:56 refid: 06SOFIA1686 origin: Embassy Sofia classification: SECRET//NOFORN destination: 06SOFIA1119|06SOFIA1204|06STATE146913 header: VZCZCXRO9684 OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV DE RUEHSF #1686/01 3540756 ZNY SSSSS ZZH O 200756Z DEC 06 FM AMEMBASSY SOFIA TO RUEHC/SECSTATE WASHDC IMMEDIATE 2980 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEHEG/AMEMBASSY CAIRO PRIORITY 0038 RUEKJCS/SECDEF WASHINGTON DC PRIORITY RHEFDIA/DIA WASHINGTON DC PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY ----------------- header ends ---------------- S E C R E T SECTION 01 OF 02 SOFIA 001686 SIPDIS NOFORN SIPDIS DEPT. FOR PM, EUR/NCE E.O. 12958: DECL: 12/19/2016 TAGS: ETTC, PARM, PTER, EG, BU SUBJECT: BULGARIA: ARMS DEALER WARNS THAT EGYPT IS HUNTING FOR MANPADS REF: A. SOFIA 1119 B. SOFIA 1204 C. STATE 146913 Classified By: CDA Alex Karagiannis, for reasons 1.4 (b) and (d). 1. (S) SUMMARY: In a December 18 meeting with an Embassy Political Officer, a well-connected Bulgarian arms broker told us that he had recently rebuffed an Egyptian MoD order for Bulgarian MANPADS, which he viewed as a proliferation risk. He warned that the Egyptians seemed to view the order as very time-sensitive and that they were likely to seek MANPADS elsewhere in the Balkans after being turned down in Bulgaria. Post has reason to suspect the source's motive for sharing this information with us; we have no way of verifying its veracity. END SUMMARY. 2. (S) On December 18, Nikolai Gigov called a lunch meeting with Poloff at the offices of his company -- the arms trading firm Delta Group (commonly known as "Delta G"). The purpose was to inform us that he had recently received a large order from the Egyptian Ministry of Defense. He had accepted part of the order -- for T-72 tank rounds and parts; however, he claimed to have declined the Ministry's order for 150 Strela MANPADS systems. Gigov appeared unaware of the U.S.-Bulgarian MANPADS agreement, which is classified in both countries at the Secret level. He claimed to have rebuffed the Egyptians of his own initiative, because of his doubts about the type of missiles ordered and the urgency with which the MoD seemed to require them. 3. (S) Gigov reported being confused as to why Egypt would place an order for outdated Strela missiles (he did not specify the specific model). "If you're a state," he asked rhetorically, "why not buy something better -- an Igla or Mistral system, or a Stinger?" Military planes have effective countermeasures for MANPADS such as the Strela, Gigov said -- "The only thing they're good for is shooting down a civilian aircraft." Gigov speculated openly that the weapons may have been intended to be diverted elsewhere. When asked specifically if the order had come from Arab International Optronics, an Egyptian MoD-owned firm that has bought MANPADS parts from Bulgaria in the past (reftels), Gigov hedged, before restating that the order came "from the MoD." 4. (S) Gigov said that such deals typically were slow-moving affairs, but he emphasized the sense of urgency that he perceived from the Egyptian side on this particular deal. The Egyptians did not specifically describe the deal as time-sensitive, he said; however, the frequent phone calls and follow-up messages he had received from their side indicated to him that this was the case. After declining the MANPADS portion of the order, he reported being contacted by the Egyptian defense attache with a request for an explanation. Background: 5. (S/NF) Nikolai Gigov is an extremely well-connected businessman, whose legitimate business interests besides Delta G include insurance and private security ventures as well as ownership of Sofia's Lokomotiv soccer club. He is widely alleged to have brokered arms deals with the former Yugoslavia in violation of UN embargoes, and may have an ongoing role in illegal traffic in methamphetamines. He has family ties to Serbia, and displays a vocal antipathy toward Muslims. Through a combination of personal ties and liberal political donations, Gigov counts many of Bulgaria's most powerful figures as "close personal friends," including President Parvanov, Interior Minister Petkov, and Sofia Mayor Borisov. He recently put these ties to use as the local agent for EADS, helping the European consortium win the MoD's competition to supply the Bulgarian military with Eurocopter helicopters. He has also worked with General Dynamics to supply Bulgarian-origin weapons and munitions to the Afghan National Army, and has indicated to us that he is interested in representing either Boeing or Lockheed in the MoD's anticipated tender for fighter aircraft. Comment: 6. (S) We believe that Gigov was attempting to curry favor with us by calling this meeting, but have no way of verifying the facts of his story. He badly wants a relationship with SOFIA 00001686 002 OF 002 the U.S. Embassy -- possibly for commercial reasons and possibly in an attempt to clean up his reputation. It is possible that he is merely shopping rumors in an attempt to convince us of his bona fides; however it is impossible to dismiss his allegations. As reftels indicate, Egypt has been a traditional customer for Bulgarian MANPADS, and the detail with which Gigov recounts the purported order would make for a very ambitious fabrication. 7. XXXXXXXXXXXX KARAGIANNIS
