American Envoy Is Linked to Arms Deal Cover-Up
Tuesday, June 24th, 2008

By ERIC SCHMITT | WASHINGTON — An American ambassador helped cover up the illegal Chinese origins of ammunition that a Pentagon contractor bought to supply Afghan security forces, according to testimony gathered by Congressional investigators.

A military attaché has told the investigators that the United States ambassador to Albania endorsed a plan by the Albanian defense minister to hide several boxes of Chinese ammunition from a visiting reporter. The ammunition was being repackaged to disguise its origins and shipped from Albania to Afghanistan by a Miami Beach arms-dealing company.

The ambassador, John L. Withers II, met with the defense minister, Fatmir Mediu, hours before a reporter for The New York Times was to visit the American contractor’s operations in Tirana, the Albanian capital, according to the testimony. The company, under an Army contract, bought the ammunition to supply Afghan security forces although American law prohibits trading in Chinese arms.

The attaché, Maj. Larry D. Harrison II of the Army, was one of the aides attending the late-night meeting, on Nov. 19, 2007. He told House investigators that Mr. Mediu asked Ambassador Withers for help, saying he was concerned that the reporter would reveal that he had been accused of profiting from selling arms. The minister said that because he had gone out of his way to help the United States, a close ally, “the U.S. owed him something,” according to Major Harrison.

Mr. Mediu ordered the commanding general of Albania’s armed forces to remove all boxes of Chinese ammunition from a site the reporter was to visit, and “the ambassador agreed that this would alleviate the suspicion of wrongdoing,” Major Harrison said, according to his testimony.

Investigators interviewed Major Harrison by telephone on June 9, and the House Oversight and Government Reform Committee made excerpts of the transcript public on Monday.

At the time of the meeting, the company, AEY Inc., was under investigation for illegal arms trafficking involving Chinese ammunition.

On Friday, the president of the company, Efraim E. Diveroli, 22, and three others were charged with selling prohibited Chinese ammunition to the Pentagon that they said was made in Albania.

On March 27, The New York Times published an article that said Albanian documents showed that the Miami company had bought more than 100 million Chinese cartridges that were stored for decades in former cold war stockpiles.

Mr. Diveroli arranged to have them repacked in cardboard boxes, many of which split or decomposed after shipment to the war zones, according to the article. Different lots or types of ammunition were mixed. In some cases the ammunition was dirty, corroded or covered with a film.

The repackaging operation, carried out by an AEY subcontractor at the Rinas Airport in Tirana, has become the focus of the Congressional investigation.

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