WikiLeaks Reveals Rothschild Billion Dollar Money Laundering Plot

by Quinton on August 16th, 2016

A newly discovered Wikileaks cable shows that the Rothschilds were involved in a billion dollar money laundering scheme in Africa.

The classified cable from the Public Library of US Diplomacy published by WikiLeaks exposes Rothschild Bank “advising” a “secret and corrupt” billion dollar transaction in order to create a “massive money laundering scheme” in Senegal and crash the struggling nation’s economy.

The secretive Rothchilds are rarely in the news and never publicly rebuked by governments, however the classified cable discovered by Your News Wire reveals that a US diplomatic official clearly referred to the actions of Rothschild Bank as “corrupt” and the transaction as “indefensible.”

The Rothschild-driven deal involved the Senegalese state selling off Sonatel, the national telecommunications company and most profitable public resource, in return for $1.2 billion.

The US government were led to believe the sale was corrupt and the funds would be used to create a “massive money laundering scheme” to benefit the Senegalese elite – specifically former President Abdoullah Wade’s son Karim Wade – and Rothschilds Bank.

The cable was written by the US diplomat Jay Smith, the chargé d’affaires heading the Dakar embassy in the absence of an ambassador. From the cable:

The cable shows the US government were aware of the illegal deal and were petitioning the Senegalese government against completing it. No such petition was attempted with Rothschild Bank however, even though the London merchant bank was the “advising” body with the “decision” of who would gain access to the shares.

“According to Diarisso, with the DGMP’s waiver, the government can now conclude an exclusive deal with the investment bank Rothschild (which was also noted in the press articles) to act as the advisor and sole agent for the sale, including “deciding” who gets the opportunity to buy the shares.”

The cable stated openly that the Rothschild Bank – an infamous British multinational investment bank founded in 1811 and controlled by the Rothschild family to this day – was operating illegally:

The information was confidentially shared with the US diplomat by senior Senegalese and International Monetary Fund (IMF) officials.

The full classified cable can be viewed here.

Financial terrorism

The sale of the profitable national company was expected to have disastrous financial consequences for the fragile Senegalese economy. The only beneficiaries of the sale were to be the country’s ruling family and the Rothschild Bank. According to the cable:

“The IMF, World Bank, and senior officials at the Ministry of Finance are deeply concerned about the deal’s short- and long-term consequences for Senegal’s public finances. As Diarisso recently told the Econ Counselor, “it’s much worse than serious.”

The corrupt sale of the national company was expected to have particularly dire consequences for the nation’s pensions:

“The journal [Nouvel Horizon] reported that Rothschild Bank would again be granted the right to organize the divestiture as a private transaction, and that the goal was again to facilitate money laundering. At this time, we have no further information on this proposal, but if true, the impact could be even more staggering and widespread, given that IPRES is the retirement lifeline for thousands of non-government employees.”

“Cool and corrupt $15 million”

“There is consensus among observers of the government’s actions that the primary purpose of this divestiture is to help Karim Wade and his associates launder huge sums of cash that they have collected in recent years through “contributions,” “donations,” kickbacks, and the sale of illegally acquired assets, much of which was generated in the preparations summit of the Organization of Islamic Conference (OIC) held in March in Dakar.“

Our interlocutors are convinced that Senegal’s high-level corruption could have easily generated level of receipts equal to the value of the Sonatel shares; however, the scale of this scheme is audacious by Senegalese standards. As Diarisso noted, “the country can accept Karim’s frequent efforts to launder CFA one billion or 5 billion (USD 2-10 million), but this is beyond acceptable.” Holding these assets for steady dividend income or selling these directly back into Dakar’s regional stock exchange in a routine and unsuspicious manner will, in theory, “wash” the money to the point of plausible deniability.

Adding to the fiscal irresponsibility of this scheme, the arrangement with Rothschild’s reportedly includes paying the bank a 1.5 percent commission on the value of the shares, for a cool and corrupt USD 15 million.

We cannot refute the government’s claim that it has the right to sell its own assets. But it is a difficult case to make fiscally, since Sonatel is the country’s best performing company and one of the few stable sources of significant revenue for Senegal’s national budget. For the government to do so solely to facilitate corruption and launder money on behalf of Karim Wade and his circle, would be indefensible.”

Source: http://yournewswire.com/wikileaks-reveals-rothschild-billion-dollar-mone...

 Filed under: Families, House of Rothschild

1 Comment

Quinton: Full document:

Full document:

DAKAR 00000588 001.2 OF 004

Classified By: CHARGE D'AFFAIRS, A.I. JAY T. SMITH, for reason 1.4 (b)
and (d).

SUMMARY
-------
1. (S) Senior Senegalese and IMF officials have
confidentially shared with us their concerns that the
government, apparently with President Abdoulaye Wade's
blessing, is preparing to enter into a privately negotiated,
potentially corrupt deal to sell the government's holdings in
Sonatel, Senegal's most profitable company. The windfall to
the government could be USD one billion or more, with at
least USD 15 million going to Rothschild Bank, the
advising/administering entity. The widely held belief is
that the goal is to help Karim Wade and his associates gain
control of the shares as a massive money-laundering scheme.
The Presidency pressured the official in charge of public
tenders to sign a waiver while her boss, the Minister of
Finance, was out of town. Should the transaction be
completed, it will have grave consequences for Senegal's
already large budget deficit and will likely add to
inflationary pressures. It would also likely bring about a
suspension (at a minimum) of Senegal's IMF program, which is
based on the GOS's claims of seriousness in pursuing economic
reform, one of its pillars of concurrence with the broader
donor community. End Summary.

DIVESTING BEHIND CLOSED DOORS
-----------------------------
2. (S) On May 2, Sogue Diarisso (strictly protect), a senior
official at the Ministry of Finance and a close confidante to
Finance Minister Abdoulaye Diop, presented Econ Counselor
with the outline of a secret and corrupt plan for the sale of
the GOS's approximately 28 percent stake in Sonatel,
Senegal's largest telecommunications company (now majority
owned by France Telecom/Orange). Much of what Diarisso
reported was confirmed in EconCouns's subsequent meeting with
IMF Resident Representative Alex Segura (also strictly
protect). The outline of the scheme was reported in two
press articles on May 9, but has not yet generated the kind
of public attention it deserves. The current value of
Senegal's Sonatel shares is estimated at CFA 500 million
(approximately USD 1.2 billion). For a time, the deal was
being held up by Ms. Magette Diop Kane, the head of the
Direction Generale des Marches Publiques (DGMP), Senegal's
pubic procurement office, which is part of the Ministry of
Finance. According to Senegalese law, such a transaction
needs to be open, transparent, and competitive and approved
only after a review by an investment committee and the
approval of DGMP.

3. (S) EconCouns asked Budget Minister Sarr on May 2 about
the rumors of the impending divestiture and the Minister said
that the GOS had not yet made up its mind and was conducting
an extensive study of the possibilities. Sarr, who is a
close confident of Karim Wade and was, according to both
Diarisso and Segura, working behind the back of his boss, the
Finance Minister, admitted that the sale might be done as a
"strategic private investment" rather than a public sale
through the regional stock market.

4. (S) EconCouns met with Diarisso again on May 19 and was
told that Kane had "buckled under pressure from high
officials at the Presidency" and had signed a waiver on May
16 to allow a private negotiation for the deal ("marche
gre-gre" in local parlance). Diarisso said that the letter
of instruction from the Presidency indicated that President
Wade himself approved the approach. According to Diarisso,
that letter and the approval from DGMP were marked "Secret"
and it was unlikely that the information would leak to the
press. The Minister of Finance, who we believe strongly
opposes both the sell-off and the private transaction, would

DAKAR 00000588 002.2 OF 004

normally be required to approve this waiver, but he was in
Mozambique at a meeting of the African Development Bank.
Diarisso was very disappointed that Kane had not held out
until the return of Minister Diop, even though it would have
undoubtedly cost her job.

A "DEMAND-DRIVEN" PRIVATE DEAL
------------------------------
5. (S) According to Diarisso, with the DGMP's waiver, the
government can now conclude an exclusive deal with the
investment bank Rothschild (which was also noted in the press
articles) to act as the advisor and sole agent for the sale,
including "deciding" who gets the opportunity to buy the
shares. The widely held belief in Dakar is that the main
beneficiary will be President Wade's son (and Special
Economic Advisor) Karim who, along with his cronies (close
business partners in Kuwait) and whatever shell companies
they may have now or will establish, would be granted an
insider opportunity to buy the shares.

6. (S) Even though President Wade first announced the
government's planned sale of its Sonatel shares back in
October 2007 (and later retracted due to IMF and donor
concerns), it now appears that the deal will happen soon due
to pressure from Karim Wade and other potential
beneficiaries, not because it will help the country's fiscal
position. There is consensus among observers of the
government's actions that the primary purpose of this
divestiture is to help Karim Wade and his associates launder
huge sums of cash that they have collected in recent years
through "contributions," "donations," kickbacks, and the sale
of illegally acquired assets, much of which was generated in
the preparations summit of the Organization of Islamic
Conference (OIC) held in March in Dakar. Our interlocutors
are convinced that Senegal's high-level corruption could have
easily generated level of receipts equal to the value of the
Sonatel shares; however, the scale of this scheme is
audacious by Senegalese standards. As Diarisso noted, "the
country can accept Karim's frequent efforts to launder CFA
one billion or 5 billion (USD 2-10 million), but this is
beyond acceptable." Holding these assets for steady dividend
income or selling these directly back into Dakar's regional
stock exchange in a routine and unsuspicious manner will, in
theory, "wash" the money to the point of plausible
deniability.

7. (SBU) Adding to the fiscal irresponsibility of this
scheme, the arrangement with Rothschild's reportedly includes
paying the bank a 1.5 percent commission on the value of the
shares, for a cool and corrupt USD 15 million.

WHAT ECONOMIC REFORMS? A THREAT TO IMF PROGRAM
--------------------------------------------- --
8. (SBU) If this deal goes through as outlined, at some
point after the privileged buyers have been confirmed the
government will be forced to announce the sale (if not the
buyers) and try to defend it. The actual sale may require
approval by the National Assembly, but that should not prove
to be a barrier since the legislative branch is
overwhelmingly dominated by President Wade's PDS party. We
would expect, however, a vigorous debate on the economic
reasoning and the negative precedent it would establish for
the GOS's much-touted economic reforms.

9. (S) Segura told EconCouns he could not see how the IMF
could continue its Policy Support Instrument (PSI) program
with Senegal if the government turns its back on all its
pledges of reform and improved transparency to conclude this
deal. Equally damaging would be the credibility of the DGMP,
which was only established in October, 2007 under a widely
praised law to significantly reduce non-transparent public
tenders. Diarisso claims that the DGMP will be "dead."

ECONOMIC IMPACT

DAKAR 00000588 003.2 OF 004

---------------
10. (C) The IMF, World Bank, and senior officials at the
Ministry of Finance are deeply concerned about the deal's
short- and long-term consequences for Senegal's public
finances. As Diarisso recently told the Econ Counselor,
"it's much worse than serious." Currently, dividends from
the government's stake in Sonatel are the biggest single
revenue source for the budget, at around CFA 80 billion (USD
190 million), or 12 percent of national income. Senegal,
which is currently running a budget deficit of approximately
CFA 150 billion, likely has no near-term prospects for
replacing this revenue apart from further appeals to donors.
Finance Ministry officials have told us they are not aware of
any sound plan by the government to manage a billion dollar
windfall and that people close to the deal are not concerned
about the inflationary pressure that would likely be spawned
by trying to quickly finance new projects or capital
spending. In addition, since the windfall would not be
counted as income, Senegal's budget deficit would not be
improved.

11. (C) We obtained a copy of a letter from the head of
IMF's review mission to Senegal, Johannes Mueller, to the
Minister of Finance (sent with the expectation that it would
be forwarded to President Wade), highlighting the IMF's
concerns about the lack of transparency and the negative
impact on the budget from this deal. The IMF letter also
underscores the Fund's worry that the government could not
properly plan or evaluate large new projects that might be
initiated.

12. (S) Madani Tall, the World Bank's Country Director for
Senegal told Acting Charge (and USAID Country Director) that
he had raised the issue with President Wade. Tall indicated
that President Wade was upset by the IMF representative,s
May 16 comments in the press about the country,s budget
situation (to be reported Septel). However, regarding the
selection of Rothschild Bank, Wade stated that is the
prerogative of any country and did not view the selection as
a contract (which contradicts the fact waiver was required
for the selection). Madani Tall also indicated that Wade was
aware of donor concerns and reassured him that any sale would
be open and transparent (which again contradicts our other
information).

SAME DEAL, TAKE TWO?
--------------------
13. (SBU) The respected journal Nouvel Horizon accurately
reported on the planned GOS sale of Sonatel shares on May 9.
In its May 16 edition, it reported on rumors that the GOS was
going to insist that the country's largest public retirement
fund, IPRES, also sell its large stake (approximately 16
percent) in Sonatel. The journal reported that Rothschild
Bank would again be granted the right to organize the
divestiture as a private transaction, and that the goal was
again to facilitate money laundering. At this time, we have
no further information on this proposal, but if true, the
impact could be even more staggering and widespread, given
that IPRES is the retirement lifeline for thousands of
non-government employees.

COMMENT -- THE USG SHOULD RESPOND
---------------------------------
14. (S) We cannot refute the government's claim that it has
the right to sell its own assets. But it is a difficult case
to make fiscally, since Sonatel is the country's best
performing company and one of the few stable sources of
significant revenue for Senegal's national budget. For the
government to do so solely to facilitate corruption and
launder money on behalf of Karim Wade and his circle, would
be indefensible. Therefore the USG should warn the GOS that
should the sale be confirmed as has been outlined by our
contacts, at a minimum, the USG should consider doing an
out-of-cycle review of Senegal's MCC eligibility, and also

DAKAR 00000588 004.2 OF 004

reconsider its support for the county's IMF PSI program. We
should communicate very soon these potential consequences to
the GOS in the hopes of heading off this train wreck.
However, even a greater effort may be required. According to
our sources, the people behind this scheme are much more
determined to have their money, than to care about "small
stuff" like the IMF and MCC.
SMITH

Source: https://wikileaks.org/plusd/cables/08DAKAR588_a.html

You must be logged in to comment

Site Statistics

Posts
17,984
Comments
31,737
Members
20,976

Currently Active Users 2 members