A GROUP of Isle of Man companies has been sanctioned by the United States over alleged involvement in funding Iranian weapons programmes.
The eight Manx-registered companies are said to be fronts for the Islamic Republic of Iran Shipping Lines. The US authorities also say there is a connection with Bank Mellat which is already under sanctions for alleged support of Iran's nuclear and ballistic missile programmes.
In total, nearly 80 different companies have been sanctioned for their links with the Islamic Republic of Iran Shipping Line which is accused of carrying military cargoes.
The eight Manx companies had a registered address at Manning House in Buck’s Road, Douglas and all have names suggesting they are involved in shipping. The shipping firms use the names Ashtead, Byfleet, Cobham, Dorking, Effingham, Farnham, Gomshall and Horsham. We have been informed that the registered office address has now been withdrawn from use by these companies.
Also designated were Pearl Energy Co. and its subsidiary, Switzerland-based Pearl Energy Services, which the US Treasury said were formed by a subsidiary of Bank Mellat.
A spokesman for Isle of Man based management company involved told isleofman.com that there were no Isle of Man directors in any of the shipping companies and that the current directors of the management company had never been directors of any of the named shipping companies.
The US Treasury in Washington says it has black-listed a total of 10 Iranian businesses affiliated with the country's state bank and national shipping lines, as well as five executives from those firms. The two other companies are registered in Switzerland and Malaysia.
The sanctions freeze any assets the companies may have in US jurisdictions and bar them from any dealings in the US financial system.
"As long as Iran uses front companies, cut-outs and other forms of deception to hide its illicit activities, we intend to expose this conduct and thereby counteract Iran's attempts to evade U.S. and international sanctions," said Stuart Levey, the under secretary for terrorism and financial intelligence.
The matter first came to light following a BBC Radio 4 investigation in July which suggested that Iran had side-stepped the international arms embargo on Iran by setting up Manx companies to register ships for its fleet.
At the time, Captain Nigel Malpass, a marine consultant based in Douglas, was one of two directors named for these companies. The other was Ahmad Sarkandi, an Iranian who is also a leading executive in the state shipping line.
Captain Malpass told the BBC in July that the companies had been formed at the request of a German bank which holds a mortgage on all the ships. He said the Manx authorities had authorised the dealings which had been arranged some years before the sanctions came into force.
Chief Minister Tony Brown answered questions on the subject earlier this year but said an internal investigation had revealed no wrongdoing.
The BBC report said: ‘There is no suggestion that Captain Malpass had any knowledge of the activities of the ships owned by the companies of which he was the director.’
In a statement Captain Malpass told the BBC, "IRISL has always strenuously denied these unproven allegations made by Israel's Foreign Ministry in respect of MV Visea.
"The matter was investigated in depth by the authorities in the Isle of Man responsible for monitoring such activities and after fully investigating the allegations, the authorities have been satisfied that that there was nothing carried out by myself or my associates which could be interpreted as infringing the appropriate sanctions."
Tony Brown said that Israel, who claimed arms were found in crates carrying IRISL logos, should raise the matter with the UN. However, Israeli official, Ran Gidor, a political adviser at its embassy in London, said, "Even assuming the resident in the Isle of Man had no clear knowledge of the contents of the ship the very fact he chose to get involved with shipping traffic going in and out of Iran would expose him to risk.”
In our original article it was stated that the directors of the management company involved were directors of the eight shipping companies involved. We have been informed by them that this is incorrect. We apologise and are happy to update the information. (10.43am 03-12-2010). Article later updated to reflect removal of registered office facilites for all 8 companies. (3.10pm 03-12-2010)
