The much-talked about Richard Cheltenham report has raised serious concerns about the manner in which the Keith Mitchell-led New National Party (NNP) government managed to recruit and appoint crooks and con-men to diplomatic positions for Grenada.
Sole Commissioner, Sir Richard expressed serious concerns over the manner in which two questionable characters, Eric Resteiner and Viktor Kozeny, known internationally as the Pirate of Prague managed to land diplomatic jobs with the Mitchell government.
In a scathing attack on the system in place, the Commissioner said the manner in which the Kozeny and Resteiner appointments took place clearly "reflected adversely on those concerned both at the political and administrative level".
Cheltenham was appointed by Governor-General, sir Daniel Williams to look into reports that Resteiner had paid Prime Minister Mitchell a bribe of US$500, 000 in June 2000 in Switzerland for his diplomatic job.
The Commissioner was amazed over the failure of those officials in Grenada who processed Resteiner's application to became suspicious of his dealings.
"Resteiner was behaving like the classic fraudster - yet no one either in the Ministry of Foreign Affairs or in the office of Grenada International Financial Services Authority or the Passport Office or in the Cabinet seemed to have picked it up", he said.
"What is clear, however, is that at the office of GIFSA, the Ministry of Foreign Affairs and the Cabinet there was displayed a level of naivete which was both stunning and suspicious.
As a public service, GRENADA TODAY has decided to highlights some of the interesting observations made by Sir Richard on the Resteiner appointment:
On the 8th of June, 1999 an application for economic citizenship was received from Eric Resteiner through his agent in London, Mr. Marshall Langer of an English firm of solicitors, Shutts Bowen, with offices in London and Miami.
Resteiner's application was on behalf of himself, his wife, Elizabeth, to whom he was married on April28th, 1982 and his son, Joshua. As is required by law, many documents were submitted in support of Mr. Resteiner's application for a Grenada passport.
They were as follows:
(1) Application for a Passport Form A
(2) Certificate of Registration as Citizens of Grenada GHC
138/99
(3) Certificate of Live Birth
(4) Government of Grenada Treasury Receipt
(5) Interpol Check List on Foreigners for Visa and
Business Passports
(6) Royal Bahamas Police Force Criminal Investigation
Department Certificate
(7) Set of Fingerprints
(8) Marriage License
(9) Certified Copy of Seychelles Passports
The documents submitted revealed that Resteiner's given names were Eric and Edward and that he was born on May 14th, 1959 in the State of Michigan, U.S.A.
It would appear that Resteiner renounced his American citizenship in 1995. His parents, Harold Edward Resteiner and Gloria Estrellado Resteiner were both Americans.
At the time of the application his address was Rainbow Road, Hyford Cay, Nassau, Bahamas. His profession or occupation was that of businessman. He was a national of the Seychelles.
According to the Treasury Receipt of the Government of Grenada, receipt No. 00179270, Resteiner paid Twenty thousand dollars US Currency (US$20,000.00) to the Accountant General.
Both his wife Elizabeth and his son Joshua each paid UD$20,000.00 and this was reflected in Treasury Receipts Nos. 00179268 and 00179269 - both of which were dated July 28th, 1989.
The passport which he had was issued by the Immigration Office of the Seychelles on 31st July, 1997. It was No. A057769. In applying for a Grenadian passport he indicated on the form that it was needed to travel on business and pleasure to all countries.
Evidence of Michael Creft
Whenever an application is made, it is a requirement that background checks be made on the applicant. It is also a requirement that the agent of the applicant should do a background check.
Michael Creft, both in his witness statement dated the 3rd of September, 2004 and taken by ASP (Michael) Francois, the detective attached to the Commission of Inquiry, and in his testimony before the Commission acknowledged that much reliance was placed on the fact that Shutts Bowen assured them that «the background check was done and nothing of a negative nature was found to deny the application".
It is of significance that Michael Langer was later to advise Creft that Resteiner had disappeared, owing the firm of Shutts Bowen and they were looking for him in Egypt. Creft testified that he checked on Resteiner with the Royal Bahamas Police Force. GIFSA along with the Passport Office would also have checked an Interpol Checklist on foreigners for visa and business purposes.
Creft impressed me as an evasive witness who was not disposed to speak frankly and fully in relation to the processing of the Resteiner's application for Economic Citizenship and the checks done.
He gave no straight answers about the criteria that had to be applied in relation to the checking of each applicant. At page 88 of the Transcripts, he identified the Citizenship Application, the passport, the birth and marriage certificates, medical clearance, financial reference letter, fingerprint card and police certificate as part of his checklist.
But that was not to carry the checking process beyond the documents required by law to be submitted for a passport. Creft claimed to have contacted Interpol and the Bahamas Police Force. Interestingly, he did not recall asking the Seychelles for a background check although his passport is from the Seychelles of which he was a national.
His explanation for not doing so is unsatisfactory. Creft contradicted himself in successive answers in which he said he contacted the FBI and suggested that the FBI "would normally call us". Yet when it was put to him that it was usual for the FBI to do its business in writing, he agreed and added that he thought that that was the procedure followed in Resteiner's case.
Although there was a shared vetting responsibility of applicants between the Passport Office and Creft's office, there was no evidence of the Passport Office sharing its checks with the Grenada Financial Services Authority on each applicant.
Creft appeared before the Commission without the file on Resteiner. He claimed that he checked for the file the day before Testifying and could not find it.
The Commission never saw the report from the FBI, Interpol or the Bahamas Police Force on Resteiner. In response to questions from Prime Minister Mitchell's counsel, Creft as page 81 of the Transcripts of the Oral Hearings, said that 'he did run' Resteiner's name to the International Chamber of Commerce security branch in London. No report from that organisation was seen.
The normal time to process an application for Economic Citizenship was two and one half months or about ten (10) weeks. In Resteiner's case, the application was processed in six (6) weeks well below the norm. I do not accept the testimony of Creft that the investigative checks into Resteiner's background were carried out adequately or at all, and I regard that as the genesis of much of what was to follow in relation to Resteiner.
He was accepted as a genuine and suitable applicant when he was in truth and in fact, quite the contrary. Resulting from the absence of a thorough and adequate check into Resteiner's background, he was given a certificate of registration as an Economic Citizen of Grenada dated the 14th of July, 1999.
He was registered under section 5 (8) of the Amendment Act, 31 of 1966. Passports were subsequently issued to him and his family. As soon as Resteiner got his citizenship, he was in touch with Creft on the telephone. He said he had a lot of business contacts in Europe and that he wanted to help Grenada to attract business.
Resteiner also told Creft that he would like to see the Prime Minister and he asked Creft to arrange it. Resteiner further told Creft that he would like to meet the Prime Minister in Europe. Creft communicated to Resteiner that the Prime Minister would be travelling to Europe and Resteiner told Creft he would like to have the Prime Minister contacted about his wish to have him break his itinerary in Europe and come to see him in Switzerland.
Resteiner also conveyed to the Prime Minister through Creft that he "would want to take care of all the Prime Minister's expenses all the way to the Kuwait trip".
The further testimony of Creft was that the Prime Minister said that "he doesn't mind the paying of the trip, but he was going to pay, make sure that he is going to use his credit card and pay his trip, that when he gets up there Mr. Resteiner will then pay him back the money".
Creft says he conveyed that to Resteiner and the understanding was that he Resteiner was "going to reimburse the Prime Minister" Creft later in his testimony quotes Resteiner as saying that "he would gladly reimburse the Prime Minister, yes for his expenses...".
The further testimony of Creft is that when Resteiner was advised that the Prime Minister would be travelling with security officers, he said that "he had no problem in reimbursing for the security persons too". Michael Creft at the insistence of Resteiner put him in touch with the Prime Minister after he became an economic citizen. The Prime Minister had many subject responsibilities including the Ministry of Foreign Affairs.
On the 16th of August, 1999 the Cabinet appointed Dr. Eric E. Resteiner, Ambassador-at-large, Conclusion No. 1343. Mrs. Meryl Forsyth who was then the Cabinet Secretary testified at the Commission hearings and read into the record the following:-
Cabinet considered this submission by the Minister of Foreign Affairs, and gave approval for Dr. Eric E. Resteiner, a citizen of Seychelles to be appointed Ambassador-at- Large. Cabinet noted that Dr. Resteiner has major investments and interests In Switzerland and the Bahamas".
Mrs. Forsyth seemed to recall that the submission in support of Resteiner's appointment was a written one and that it may have been supported by a Curriculum Vitae of Resteiner. What is beyond dispute is that the Permanent Secretary in the Ministry of Foreign Affairs sent a Memorandum to the Charge d'Affaires, Grenada Mission, Brussels, dated February 29th, 2000.
The subject was «Requested Information on Dr. Baron Eric Resteiner. The Curriculum Vitae of Resteiner about which Mrs. Forsyth was questioned revealed that Resteiner was friendly with "very many important people in the world", for example, Newt Grenrigh, former Senate majority leader; Marion Berry, former Mayor of Washington, D.C.; Robert Dole; industrialist T. Boon Pickens; Margaret Thatcher and the President of Moldavia as well as continuing friendships with many other government officials worldwide,especially Ministers of Finance.
He was described as "an innovative businessman" and the Curriculum Vitae disclosed that he had his own jet, a twin jet helicopter and his own yacht - a one hundred and twenty-seven feet ocean going motor yacht - "The Apocalypse".
The Curriculum Vitae further disclosed that in his spare time he was said to socialise with Knights and Diplomats who were described as "his friends". Among the various social and diplomatic functions he attended was President Reagan's birthday party and he was recently invited to spend a weekend in Washington, D.C. with President Clinton.
The Curriculum Vitae still further disclosed that Resteiner regularly travels to St. Moritz, Switzerland, where he owns a large chalet, in his own private jet.
It revealed that Resteiner is the Managing Director of a Bahamian Corporation called, OSAKA International. He was said to have founded the company and increased its volume to nine (9) figures.
This Bahamian company was said to hold "vast assets of real estate around the world. Some examples are St. Johns, Antigua; Nassau, Bahamas; Hamilton, Bermuda; St. Kitts, West Indies; London, England; Victoria, Seychelles; St. Moritz, Switzerland; United States".
In previous years Resteiner, according to his Curriculum Vitae, was Director of Geo-Capital Corporation, operating within Florida, Michigan and Massachusetts, in oil and gas exploration. Also, he was said to be President of the United States Petroleum Company, which forms syndicates to purchase oil and gas rights, and which controlled over thirty thousand acres.
On the last page of the Curriculum Vitae, it said that Resteiner has his own Insurance Firm, Securities Company Limited. It claimed it was fully licensed and had operations in St. Kitts and Costa Rica. It acted as a holding company for some of his business assets, and had audited financials in the nine (9) figure range with no liabilities.
Resteiner was also described in the Curriculum Vitae as "an investor for a major Wall Street Hedge Fund, ran by one of the most successful fund managers in the history of the street".
As for his education, Resteiner was said to have attended the Palm Beach Theological Seminary College, Palm Beach, Florida. This was described as "a prestigious highly selected institution" from which he got an honorary doctorate. He was also said to have been a Business Administration major, Central Michigan University, Mount Pleasant, Michigan.
It needs to be said at this stage, that evidence was provided the Commission that the Palm Beach Theological Seminary does not exist and never did. Further, it was pointed out at the Inquiry that to have been a Business Administration Major speaks to a subject area of specialty pursued in one's study. It is not a diploma or degree.
There is no evidence that a background check was made on Resteiner before he was appointed Ambassador-at-Large. The same flawed checking that was allegedly done in relation to Resteiner acquiring economic citizenship was relied upon as sufficient to justify his appointment as Ambassador-at-Large.
It seemed clear from the evidence presented that Resteiner both proposed and recommended himself for the appointment. And the position of Ambassador-at-Law had for Resteiner an obvious benefit as the status of Ambassador-at-Law (does not require accreditation by any particular country ... ".)
Resteiner was not interviewed for the appointment of Ambassador-at-Large. He both proposed himself and provided himself with a grossly exaggerated and self serving Curriculum Vitae based on a tissue of lies. To any alert administrator not informed by naivete, there was much about the Resteiner matter that should have raised suspicion. For example, he moved within a matter of a few months from being Mr. Resteiner to Dr. Resteiner to Baron Resteiner. These were red flags which should have suggested that something was suspicious, if not downright fraudulent about Resteiner.
Resteiner in his Curriculum Vitae name-dropped on an alarming scale. Besides his multiple addresses and telephone numbers, his claim to have a 120 foot yacht, a twin jet plane and helicopter, houses in Switzerland and Bahamas - all called for concern and investigation.
Resteiner was behaving like the classic fraudster - yet no one either in the Ministry of Foreign Affairs or in the office of Grenada International Financial Services Authority or the Passport Office or in the Cabinet seemed to have picked it up.
Having said that, it is clear that Resteiner won over Michael Creft who was "anxious to sort of facilitate the trip or meeting with the Prime Minister'".
In addition, he used Creft as a link to the Prime Minister whom he also seemed to have overwhelmed with himself. If the correspondence dated the 9th of August, 2000 coming from Shutts Bowen and addressed to Michael Creft is to be believed, it would appear that the Prime Minister promised Resteiner two (2) appointments even before the matters reached Cabinet, namely, Ambassador-at-Large and Consul General to the Commonwealth of the Bahamas.
But the letter to Creft under discussion revealed much more. It spoke to Creft playing a larger role in the Resteiner affair than that to which he admitted in his testimony before the Commission.
Besides, it revealed that Resteiner was dictating his appointment to the diplomatic service of Grenada, the countries to which he wanted to be accredited and the timing. He knew why he wanted to be an Ambassador-at-Large and he wanted the processing of those appointments to be done with despatch. Clearly, Resteiner was pursuing his own agenda and not that of the country. He had an interest of his own to serve.
Was the memorandum of August 9th, 2000 from Shutts Bowen to Creft drawn to the attention of the Ministry of Foreign Affairs and to the Prime Minister?
If so, why did the Minister of Foreign Affairs and the Cabinet proceed with the appointment of Resteiner on the 16th of August? And if it was not drawn to the attention of the Ministry of Foreign Affairs and the Prime Minister - why not?
And why was Shutts Bowen writing Creft about Resteiner's diplomatic appointments which concerned the Ministry of Foreign Affairs? Unfortunately, we do not have definitive answers to these questions and no judgment can properly be expressed thereon.
What is clear, however, is that at the office of GIFSA, the Ministry of Foreign Affairs and the Cabinet there was displayed a level of naivete which was both stunning and suspicious. This section of the Report cannot be concluded without mentioning an extra-ordinary series of events concerning Resteiner and the attempts made by the Government of Grenada to have him accepted by several countries in honorary diplomatic positions.
In a Diplomatic Note No. 672/99 dated November 4th, 1999, the Government of Grenada indicated its desire to appoint Baron, Dr. Eric Resteiner as Honorary Consul to the Commonwealth of Bahamas.
In a response dated December 21st, 1999, Note No. 1251, the Ministry of Foreign Affairs of the Bahamas reminded Grenada that by Note No. 1081 dated the November 3rd, 1997 Mr. Viktor Kozeny was recognized by the Government of the Bahamas as Honorary Consul of Grenada in the Bahamas.
In the said note Grenada was advised "that Mr. Viktor Kozeny has proven unsuitable in the furtherance of good relations between our two countries", and that the Government of Bahamas had intended to advise Grenada that with immediate effect it had withdrawn its recommendation as Honorary Consul.
In Note No.1 of January 5th, 2000 the Ministry of Foreign Affairs of the Bahamas wrote Grenada advising that the agreement of the Bahamas to Resteiner as Honorary Consul of Grenada to the Commonwealth of the Bahamas to replace Kozeny who had been recalled was receiving full attention.
Nothing further was disclosed of this attempt to place Resteiner in the Bahamas. In a letter dated August 9th, 2000 the Ministry of Foreign Affairs of Grenada invited Resteiner to participate fully in a conference being convened for the week of October 23rd - 27th in St. George's involving Heads of Missions and Honorary Appointees.
The theme was "Strengthening And Re-Energizing Our International Presence To Achieve Effective Representation Of Grenada In the Global Environment". It was not clear whether or not Resteiner attended.
By Diplomatic Note No. 490 of 2000 the Government of Grenada sought the agreement of the Arab Republic of Egypt to appoint Resteiner as Consul General. The Government of Egypt had agreed to the appointment but on March 8th, 2001 the recommendation for the appointment was withdrawn in a Third Person Note from the Grenada Ministry of Foreign Affairs. No reason was given for the withdrawal.
Mr. Adrian Hayes, a former Permanent Secretary in the Ministry of Foreign Affairs remembered that a request was made to the Government of Germany to agree to Resteiner as Honorary Consul.
Germany sought clarification of the jurisdiction for which he would have been responsible as there was another Honorary Grenadian Consul already in Germany, namely, Mr. Rolf Hess.
As far as Switzerland was concerned, Resteiner was proposed, but he was not accredited. In Marchi April of 2001 Resteiner's appointment as Ambassador-at-Large was revoked. The foregoing recital makes sorry reading indeed. It exposes in dramatic fashion the multiple weaknesses of the so-called system in place for the appointment of non-Grenadians to honorary diplomatic positions.
In addition to the discredit which the Kozeny and the Resteiner affairs brought to the image of the country, it reflected adversely on those concerned both at the political and administrative level.
