US embassy cable - 05KUWAIT4727

UNCLAS SECTION 01 OF 02 KUWAIT 004727 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARPI SWALKER, PM/DTCC FOR PDADE, LONDON FOR 
LTSOU 
 
E.O. 12958: N/A 
TAGS: ETTC, KOMC, KUNC, KU, US 
SUBJECT: BLUE LANTERN: CASE 966701 
 
REF: STATE 191152 
 
1. (U) Per reftel request, Econoff paid a visit to the 
offices of "National Contracts Group" (NCG) to ascertain the 
validity of the company and its stated role as a party to 
pending license No. 966701.  Econoff met with Mr. Omar A. A. 
Almutawa, President of NCG and Mr. Shahid Ayaz, General 
Manager of Global Zone Company (GZC), a subsidiary of NCG, 
described in the company's handbook as "the Projects Division 
of the National Contracts Group, one of the most dynamic 
Defense Contracting Organizations in the State of Kuwait." 
 
Company Background 
------------------ 
 
2.  (U) Based on information provided by Almutawa and Ayaz, 
and later confirmed by Embassy's Foreign Commercial Service 
(FCS) office and OMC-K's Director of Foreign Military Sales, 
NCG is the local agent for Lockheed Martin and GZC provides 
contract logistical support (CLS) to the U.S. Army LOGCAP III 
(through Halliburton/KBR), including maintenance and armoring 
installation for US military convoys operating in Kuwait and 
Iraq.  Embassy's FCS files identify GZC as a special projects 
division of NCG, founded in 1999 and registered under 
Almutawa's name.  (Note: Almutawa invited Econoff to visit 
the CLS facility and the company promotional booklet contains 
emails of appreciation from KBR officials thanking GZC for 
its maintenance and repair work.) 
 
3.  (U) GZC's company booklet describes NCG as a logistics 
company "founded in 1991 as a Professional Services and 
Logistics Organization specializing in Defense Logistics, 
Systems Engineering, Public Sector Projects and Support 
Services.  Its impressive projects portfolio includes a very 
significant portion of automotive facilities, infrastructure, 
equipment and technical workforce provisioning services." 
 
4.  (U) Ayaz confirmed that NCG has another subsidiary 
company, National Contracting Group Vehicle Inspections 
(NCGVI), that was recently awarded the "Motor Vehicle 
Periodic Inspection" contract by the Kuwaiti Traffic 
Department to inspect 1 million Kuwaiti vehicles per year. 
(Note:  NCGVI appears to be the "National Contracts Group for 
Autmobile Inspections" company cited by DoD in reftel).  Ayaz 
said that he also serves as Chief Operating Officer of NCGVI 
and disclosed that the company is a junior partner in a 
consortium that includes KIPCO, the large Kuwaiti investment 
holding company headed by the Kuwaiti Prime Minister's son, 
Sheikh Hamad Sabah Al-Ahmad Al-Sabah. 
 
Not Aware of License 
-------------------- 
 
5.  (U) Neither Almutawa nor Ayaz claimed to have any 
knowledge of the pending license, including marketing 
requirements or NCG's role as a party to the license cited in 
reftel.  Ayaz said that two years ago, NCG/GZC had 
participated in a Textron Bell helicopter bid but that the 
contract was ultimately awarded to the French company that 
manufactures Dolphin helicopters.  Nonetheless, both Almutawa 
and Ayaz expressed interest in establishing a private 
helicopter service for potential investors seeking to do 
business in Basra, Iraq. 
 
Office Description 
------------------ 
 
6.  (U) NCG offices are located at the address cited in 
reftel on the second floor of a modest shopping mall in the 
Hawalli district of Kuwait City.  Econoff, accompanied by an 
Embassy LES (Locally Employed Staff), arrived at the offices 
shortly after noon prayers and found an empty office suite. 
Emboffs were greeted shortly after arrival by Ayaz and 
escorted into Almutawa's office. 
 
Bio Note 
-------- 
 
7.  (SBU) Almutawa is Kuwaiti and appears to be in his late 
40s/early 50s.  His grandfather, Ali Abdul Wahab, established 
the family business in the 1950s as a trading company that 
continues to serve as the local agent for Volvo, Kia and 
other foreign companies.  Almutawa speaks excellent English 
and recently attended the farewell dinner at the Ambassador's 
residence in honor of the departing FCS Counselor.  Ayaz is a 
Pakistani national from Peshawar.  He also speaks excellent 
English and claims extensive defense logistical experience in 
the Gulf, including Saudi Arabia.  Almutawa and Ayaz appeared 
to get along quite well and seemed knowledgeable about Bell 
helicopters and defense logistical contracting.  Almutawa's 
conference table had a Bell helicopter calendar and there 
were models of tanks and other military vehicles displayed on 
shelves throughout the office.  Econoff noticed that both 
their business cards identified the two officials with GZC 
rather than NCG, despite the fact that the office signs 
outside read "National Contracts Group." 
 
Embassy Recommendation 
---------------------- 
8.  (SBU) While both NCG and GCZ appear to be functioning 
businesses in their stated fields of operation, Embassy is 
inclined to recommend that NCG not/not be permitted to 
participate in this license application at this time based on 
Almutawa and Ayaz's confirmed lack of awareness about the 
license and NCG's proposed marketing role. 
 
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********************************************* 
LEBARON