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Security Council Distr.: General 26 October 2001 United Nations S/2001/1015 Security Council Distr.: General 26 October 2001 Original: English Letter dated 26 October 2001 from the Chairman of the Security Council Committee established pursuant to resolution 1343 (2001) concerning Liberia addressed to the President of the Security Council On behalf of the Security Council Committee established pursuant to resolution 1343 (2001) concerning Liberia, and in accordance with paragraph 19 of section B of resolution 1343 (2001), I have the honour to submit, as agreed upon at the 7th meeting of the Committee, held on 25 October 2001, the report of the Panel of Experts (see annex). In this connection, the Committee would appreciate it if this letter, together with its annex, were to be brought to the attention of the members of the Security Council and issued as a document of the Council. (Signed) Kishore Mahbubani Chairman Security Council Committee established pursuant to resolution 1343 (2001) concerning Liberia 01-60564 (E) 291001 *0160564* S/2001/1015 Annex Letter dated 17 October 2001 from the Chairman of the Panel of Experts on Liberia addressed to the Chairman of the Security Council Committee established pursuant to resolution 1343 (2001) concerning Liberia On behalf of the members of the Panel of Experts on Liberia, I have the honour to enclose the report of the Panel, in accordance with paragraph 19 of Security Council resolution 1343 (2001). (Signed) Martin Chungong Ayafor Chairman Panel of Experts on Liberia (Signed) Atabou Bodian (Signed) Johan Peleman (Signed) Harjit Singh Sandhu (Signed) Alex Vines 2 S/2001/1015 Enclosure Report of the Panel of Experts pursuant to Security Council resolution 1343 (2001), paragraph 19, concerning Liberia Contents Page Executive summary ........................................................... 9 Introduction .................................................................. 20 A. General ................................................................. 20 B. A reminder to the background of the mandate................................... 21 Methodology of investigation................................................ 22 Standards of verification .................................................... 23 Part I. Liberia and the region .................................................. 24 Regional security in the Mano River Union ................................ 24 Sierra Leone ..................................................... 25 Liberia .......................................................... 25 Guinea .......................................................... 27 Armed non-state actors in the Mano River Union ........................... 27 RUF and Liberia ...................................................... 27 Liberians United for Reconciliation and Democracy (LURD).................. 30 Guinean dissident groups ............................................... 31 Mano River Union dialogue ............................................ 32 Part II. Transportation and weapons ............................................ 32 A. Background to the grounding of Liberian registered aircraft ...................... 32 B. Arming and disarming in the region: an overview .............................. 35 Liberian arms embargo ................................................ 35 Security situation in neighbouring countries............................... 36 Sierra Leone .................................................... 36 Disarmament in Sierra Leone....................................... 36 Guinea ......................................................... 37 C. Case studies .............................................................. 39 Case study: ER-75929 and the She-guns ................................... 39 Case study: The case of the mystery plane, EL-ALY ......................... 42 Transportation of the helicopter spare parts ........................... 42 3 S/2001/1015 The arms dealers and brokers....................................... 45 The case of Aviatrend ............................................. 46 Case study: Liberia’s quest for helicopters ................................ 49 The first consignment ............................................. 50 The second consignment .......................................... 53 Case study: The Pecos End-User-Certificate Trail .......................... 56 Case study: The case of Centrafrican Airlines ............................. 59 The Gambia New Millennium air incident ............................ 61 Massive fraud ................................................... 62 Victor Bout escapes from justice .................................... 63 Equatorial Guinea ................................................ 63 D. Weapons by land and sea .................................................. 65 Part III. Sources of revenue and government expenditure ........................... 67 Government expenditure............................................... 67 Depreciation of the Liberian dollar ...................................... 68 Sources of revenue: the structure of Liberia’s key industries ................. 69 • Rubber ......................................................... 70 • Logging ........................................................ 70 ▫ The main logging operations in Liberia .......................... 72 ▫ Wood processing............................................. 74 ▫ The timber industry and violation of sanctions .................... 74 • Diamonds....................................................... 75 ▫ Diamonds and the RUF ....................................... 80 ▫ Certificate of Origin schemes .................................. 81 • Sierra Leone ............................................. 81 •Guinea.................................................. 83 •Liberia.................................................. 83 • Côte d’Ivoire ............................................. 83 ▫ The challenge of alluvial diamonds.............................. 83 • Liberian maritime and corporate registries ............................ 84 ▫ Origins of the registry ........................................ 84 ▫ The role of LISCR ........................................... 86 ▫ Second largest maritime fleet in the world with high technical standards 87 4 S/2001/1015 ▫ Accounting for the revenue at LISCR .............................. 87 ▫ Accounting for the revenue in Monrovia............................ 89 ▫ The role of the Bureau of Maritime Affairs ......................... 90 ▫ The case of Gerald Cooper ....................................... 91 ▫ The cases of Sanjivan Ruprah and Benoni Urey...................... 92 ▫ Maritime officials on the travel ban................................ 93 ▫ The Liberian Corporate Registry .................................. 94 Part IV. The Travel Ban and States compliance to Security Council resolution 1343 (2001) 95 The Travel Ban .......................................................... 95 The case of Alphonso Gaye............................................. 97 The case of Jamal Basma............................................... 97 The case of Gus Kouwenhoven .......................................... 97 The Côte d’Ivoire loophole ............................................. 97 Wider implementation ................................................. 98 Compliance with Security Council resolution 1343 (2001) ....................... 99 Liberia’s compliance with resolution 1343 (2001) .............................. 99 Notification by other States of compliance .................................... 99 Ideas for continued monitoring of Security Council resolution 1343 (2001) ......... 99 Annexes 1. Letter of appointment of the Panel of Experts.................................. 101 2. Meetings and consultations................................................. 102 3. List of the planes of San Air, Centrafrican Airlines and West Africa Air Services the Panel recommends to ground ............................................... 117 4. Authentic End-User Certificate signed by General Robert Gueï (Côte d’Ivoire) and Ambassador Dieudonné Essienne, integrated is a part of the forged copy found in Leonid Minin’s possession. The weapons arrived in Liberia in July 2000 ........... 121 5. Fraudulent registration for the Ilyushin-76 of Victor Bout (Central African Republic), the plane changed registration in September 2001. It now carries 3C-QRA and is registered under the name San Air General Trading ............................. 122 6. One of the many forged End-User Certificates from the company Pecos in Guinea, for the delivery of helicopter spare parts (mi-24) from Kyrgyzstan. The shipment was done in July 2000. The panel also obtained End-User Certificates for Guinea in Moldova, the Slovak Republic and Uganda ............................................... 123 7. First and last page of the contract signed between Renan and West Africa Air Services, signed by LeRoy Urey, the brother of the Liberian Commissioner for Maritime Affairs 124 5 S/2001/1015 8. Charter contract between Centrafrican Airlines and West Africa Air Services, signed by Sanjivan Ruprah, partner of Victor Bout. It was used to ship seven tons of sealed boxes with ammunition from Uganda to Liberia. The second consignment was seized by Uganda before departure................................................... 125 9. Authorization by Commissioner Benoni Urey for transfer of maritime funds to San Air General Trading via Sanjivan Ruprah ........................................ 126 10. Transfer of maritime
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