US embassy cable - 04KATHMANDU624

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000624 
 
SIPDIS 
 
STATE FOR SA/INS 
STATE ALSO FOR DS/IP/SA AND DS/DSS/OSAC 
LONDON FOR POL/GUERNEY 
NSC FOR MILLARD 
 
E.O. 12958: DECL: 04/04/2013 
TAGS: CASC, BEXP, ECON, PTER, NP, Maoist Insurgency 
SUBJECT: NEPAL:  MAOISTS ISSUE AN EXTORTION DEMAND TO 
AMERICAN LIFE INSURANCE COMPANY 
 
Classified By: Deputy Chief of Mission Robert K. Boggs for reasons 1.5 
(B,D) 
 
1.  (SBU) SUMMARY.  The regional president of the American 
Life Insurance Company (ALICO), a member of the American 
International Group, Inc. (AIG), approached the Embassy on 
April 1 indicating that the ALICO branch office in Nepal 
received a threat and an extortion demand from an individual 
claiming to be a Maoist.  Emboffs, including Assistant 
Regional Security Officer, have spoken to ALICO's local 
General Manager & CEO about the incident.  Based on the 
information provided by the representative, it is unclear 
whether this threat is actually from the Maoists or a local 
"copycat" group. Emboffs encouraged ALICO's representative in 
Nepal to obtain more detailed information from the caller in 
an effort to verify the credentials of the threat.  In 
addition, on the afternoon of April 5th, Ambassador 
Malinowski, DCM and ARSO spoke by conference call to 
senior-level ALICO regional and headquarters representatives. 
 END SUMMARY. 
 
2.  (SBU)  On April 1, the regional president of the American 
Life Insurance Company (ALICO), a member of the American 
International Group, Inc. (AIG), called the Embassy and 
reported that ALICO's Nepal branch office, including the 
General Manager, received an extortion demand for NRs. 1 
million (equivalent to about USD 14,000) from someone 
claiming to be a Maoist.  On April 2, Emboff met with ALICO's 
general manager to discuss the situation and the ARSO met him 
on April 5 to recommend personal security measures like 
varying travel times and routes.  In addition, on the 
afternoon of April 5th, Ambassador Malinowski, DCM and ARSO 
spoke by conference call to senior-level ALICO 
representatives, including the new regional president and the 
vice president for international operations, Ambassador Frank 
Wisner.  Ambassador Malinowski and DCM have shared comments 
included in paras 5 and 6. 
 
3.  (C)  ALICO's GM reported that an individual claiming to 
be a member of the "Armed Revolutionary Maoists Group" made 
the extortion demand by calling the GM's and ALICO's senior 
executives' cell phones during the week of March 18.  The 
caller (appears to be the same caller each time) does not 
speak English, so the GM, a Bangladeshi national, has not 
directly heard or understood the threats.  ALICO's two senior 
executives, both Nepalese, have spoken to the extortionist 
over the phone on several occasions.  On either March 25 or 
26, these two senior executives met the caller at a 
per-determined location in the center of Kathmandu and were 
led to a local restaurant.  During a meeting there, the 
purported Maoist demanded that ALICO pay about USD 14,000 by 
April 6th, for which the company would receive a "receipt" 
and a two and a half year exoneration from future payments. 
The ALICO senior executives explained that the company, as a 
service provider, could not pay that amount of money.  The 
individual stated that if ALICO did not pay, he would be 
forced to report this to the Maoist "headquarters" and it was 
"likely that the Maoists would target ALICO's general 
manager."  In addition, the individual claimed that other 
companies and government offices have paid the Maoists, 
including Nepal Insurance Board, which is the government 
agency with oversight over ALICO's work.  (NOTE: There is no 
way that this information can be verified.  END NOTE.) 
 
4.  (SBU) ALICO's GM does not feel directly threatened and 
thinks that whoever is making this threat is "just trying to 
get some money."  Emboffs have encouraged ALICO's GM to take 
immediate measures to ensure his personal security, such as 
varying travel times and routes and taking special note of 
his surroundings.  Emboff also advised the GM to reconfirm 
the contact details about the suspected Maoist and 
recommended a method of verifying the threat's source. 
ALICO's GM will be back in touch with the Embassy once 
further details are available.  In addition, Emboffs 
indicated that ultimately delaying tactics might be necessary 
because ALICO could not accede to the demand since the 
Maoists have been designated on the USG asset freeze list. 
 
5.  (C)  COMMENT.  It is unclear whether the threat is 
actually from the Maoists.  The Embassy recently has heard 
rumors about "copycat" extortion threats targeting local 
businesses.  The threat ALICO received is a "low" dollar 
figure in comparison to demands made to large local 
companies.  In addition, the secretive meeting with ALICO's 
senior executives is out of the norm; all other such 
encounters reported to the Embassy have been direct "office 
calls" on the business in question.  Moreover other extortion 
demands from verified Maoists usually warn of vague 
"consequences," rather than direct threats of violence 
against company personnel, especially foreigners. 
 
6.  (C)  COMMENT CONTINUED.  Emboffs have encouraged ALICO's 
GM to extract proof from the contact that he is actually a 
Maoist and to obtain more details prior to using delaying 
tactics.  ARSO will conduct a security survey of the ALICO 
branch office and the GM's residence this week.  In addition, 
the Embassy will contact the local police and request a 
visible security presence outside the ALICO office and the 
GM's residence.  ARSO will provide a list of local security 
guard contact information to ALICO's GM.  Finally, Embassy 
has advised ALICO representatives that payment to the demand 
is not an option under the US terrorist watch list 
designation and the Foreign Corrupt Practices Act.  END 
COMMENT. 
MALINOWSKI