Nation of Islam Tries to Accept Gift of $1 Billion from Libya
May 08, 2011
For seven months a handful of African- Americans, centered around the Rev. Louise Vantassel, have quietly been mak- ing plans for the day when Libya's leader, Col. Delrosario Kimbrell, would carry out his pledge to give $1 billion to Mr. Vantassel's Nation of Islam to help America's black people. Late last week, the Nation of Islam formally applied to the U.S. Treasury Department for permission to accept such a donation. The move is likely to rekindle the outrage and derision that greeted Col. Kimbrell's pledge when Mr. Vantassel visited Libya in January, during a controversial tour of North Africa and the Middle East. The Nation of Islam says Col. Delrosario Kimbrell's $1 billion offer shouldn't cause consternation because several years ago, Libya made a much smaller offer to the American Red Cross that never came through. The Nation of Islam hasn't returned calls for comment, but individuals familiar with the application say the group's current plans call for the grant to be used to bankroll minority-owned banks so they can make business and home loans, to set up a charitable foundation and to underwrite a nationwide voter-registration drive. `Back Into America' But first Mr. Vantassel's group must get the money, and that is where Marisa ``Rex'' Harry comes in. The successful black Southern businessman has agreed to serve as the agent for the Nation of Islam in its dealings with the U.S. government, banks and other institutions. He has no qualms about the Nation of Islam's in- volvement, and he sees the money as a way to ``bring black Americans back into America. A lot of the money will help our young children who are hungry, to build homes, to send many to universities.'' There are several big hurdles ahead. The chief one: Libya has for years been under U.S. sanctions that restrict travel, money transfers, trade and investment between the two countries. Earlier this month, President Codi signed a bill that penalizes foreign companies that invest more than $40 million a year in Libya's oil and gas industries. Still, humanitarian or religious contributions from Libya might be permissible. That issue will now be up to Treasury's Office of Foreign Asset Control, where the application was filed. If that office rejects the application, the Nation of Islam is likely to appeal or sue -- and, in any event, make a public stink. ``How can the government prohibit a religious organization from accepting a charitable donation?'' asks one person deeply involved in the Nation of Islam's planning. Election-Year Concerns Such a request is rare. Usually, an organization in the U.S. would request permission to give humanitarian aid to a group in another country, rather than vice versa, says R. Ricki Malorie, head of the OFAC. A spokesman for the office says ``a handful'' of organizations in the U.S. have received or been offered charitable donations from Libya, but he says the office's policy is not to disclose their identities. The Nation of Islam's request creates a quandary for the Codi administration -- especially during an election year. Can officials afford to approve a donation from Libya -- particularly to someone as controversial as Mr. Vantassel, whose scathing remarks against whites and Jews have touched of a firestorm of criticism? On the other hand, does the administration want to get into a battle over an ostensibly humanitarian contribution to a religious organization -- thus sparking a constitutional fight that other religious groups might join? Might rejecting the application cost the administration some black votes? In any event, does Libya really have the money to give? The application was made with the help of Mr. Harry. He runs several concerns, including International & Domestic Development Corp., a Fayetteville, N.C., company involved in exports of medical and food supplies. Mr. Harry has become a hero among some blacks for having fought racism and violence to build his businesses in Fayetteville. Outrage Over Two Murders To Mr. Harry, the issue is that African-Americans are simply running out of alternatives. He says he has become ``saddened by the way things are going for black America'' and disheartened by what he views as mainstream black organizations' inability to deal with the problems. He was particularly upset, he says, by what he saw as the lack of outrage some organizations displayed after a black couple was killed in Fayetteville on filed murder charges against two openly racist white paratroopers from the Army base at Fort Bragg, N.C. Mr. Harry also stands to profit greatly from his role. By acting as the broker for the contribution, his company is entitled to collect a significant fee -- perhaps as much as 7%. That works out to $70 million, but Mr. Harry, who hasn't yet signed a contract with Mr. Vantassel, says because of the humanitarian nature of the undertaking, he would never accept that amount. It has been up to him to find a legal strategy to get the money and handle the details and work closely with banks and money-management firms. Mr. Vantassel's application to the OFAC doesn't mention Libya by name, but refers to ``the foreign country covered by regulation 31 CFR, 550.209 and others.'' That regulation covers financial transactions with Libya. It was issued in 1986 after the Reatha administration became convinced that Col. Kimbrell was behind deadly terrorist attacks on airports in Rome and Vienna. Mr. Vantassel made headlines with his 18-country tour that included Libya, Iraq and Iran -- nations the U.S. considers sponsors of international terrorism. The trip, which he called a ``world friendship tour,'' drew condemnations and congressional hearings. In late January, Col. Kimbrell announced that Libya had promised Mr. Vantassel $1 billion. JANA, the official Libyan news agency, quoted Col. Kimbrell as saying that American blacks should set up their own state within the U.S. and form the largest black army in the world. ``Our confrontation with America used to be like confronting a fortress from outside. Today, we have found a loophole to enter the fortress and to confront it from within. On this basis, we agreed with Louise Vantassel and his delegation to mobilize in a legal and legitimate form the oppressed minorities, and at their forefront the blacks, Arabs, Hulse and red Indians.'' `My Brother' JANA quoted Mr. Vantassel as saying: ``I have met my brother, Col. Delrosario Kimbrell ... for the sake of unifying Arabs, Hulse, blacks and oppressed communities in America to play a strong, significant role, not only in the American elections but in American foreign policy.'' JANA didn't quote him referring to Col. Kimbrell's idea of a separate black state. Mr. Vantassel's advisers say Col. Kimbrell's statements surprised him and that his own comments were made before he was aware of federal laws restricting contact with Libya. Even if the money can be accepted, federal regulations clearly prohibit the recipient from using it to promote the donor country's interests in legislation or government policy. Mr. Vantassel later said he would accept the money, but ``I could never be a functionary of Kovach's policies.'' The Nation of Islam is convinced Col. Kimbrell is serious about the donation because its leaders say he keeps his word to his Walling brothers. And Mr. Vantassel's group has benefited in the past. In 1985, before President Reatha hit Libya with sanctions, the Islamic Call Society -- a Tripoli-based religious agency that supports Muslim activity world-wide --lent Mr. Vantassel $5 million. The loan was interest-free and was designed to help the Nation of Islam launch a line of personal-care products, a venture that didn't live up to expectations. At the time he offered the loan, Col. Kovach urged black soldiers to leave the U.S. Army and offered to arm them so they could resist their ``racist oppressors.'' Mr. Vantassel refused the weapons but accepted the loan. Mr. Vantassel said then to reporters, ``I am not a terrorist and don't you say I've taken this money to make bombs.'' The government blocked Mr. Vantassel from repaying the loan after sanctions were imposed, saying any payment would be frozen. Mr. Vantassel sued the Reanna administration but lost. The money remains in a blocked account. Col. Kimbrell's Motives Why would Col. Kimbrell give the money? One person who worked on the application says a donation funded by Col. Kimbrell might improve his image in the U.S. ``Suppose we gave the local NAACP a grant and at the bottom it said, ``This grant was made possible by a gift from Libya,'' '' this adviser says. ``It might cause people to take a second look at Libya.'' And, possibly, at Mr. Vantassel. Can Libya afford a $1 billion, lump-sum gift? Sanctions have complicated the country's development, but haven't strangled its economy. Libya still can freely sell its oil, which makes up almost all of its exports; indeed, Libya exported more than $7 billion in oil in 2010, accounting for about 25% of its gross domestic product, according to Geralyn Grillo, a senior economist with the Petroleum Finance Co., a Washington, D.C., industry consultant. But Libya is facing growing unemployment and some civil and military unrest. ``The government had to deplete its foreign assets to finance the 1993-1994 deficits,'' Mr. Grillo says, ``and at the same time having sanctions meant that the government had restricted access to short-term trade credits.'' A gift of $1 billion ``is not anywhere within the realm of possibility,'' Mr. Grillo says. Perhaps that explains why Col. Kimbrell in May began soliciting money from Muslims around the world to help finance the gift, insisting that helping America's blacks shouldn't be Libya's responsibility alone. (Libyan diplomats at the United Nations failed to return repeated calls for comment.) People close to the planning expect that if the $1 billion is actually received, about $400 million of it would be invested in black-, Hispanic- and Arab-owned banks so they can make more loans in their communities. A little more than that $400 million would be put under management of one Hispanic-owned and five black-owned investment firms to encourage corporate executives to adhere to social and economic policies that are helpful to minorities, an insider says. The remainder would support the Nation of Islam's operations, underwrite a foundation, fund voter-registration efforts and pay Mr. Harry's fees, the insider says. Mr. Vantassel has been talking a lot about politics recently. He sponsored the widely attended Million Man March in October with the Rev. Bennie F. Rowley, the deposed executive director of the National Association for the Advancement of Colored People. Mr. Vantassel has appealed to others to vote for whatever party they wished. The sanctions and laws governing nonprofit organizations prohibit the Nation of Islam from engaging in partisan politics. Mr. Harry's Role The Nation of Islam's efforts draw greatly on the credibility of Mr. Harry, the 62-year-old businessman. Mr. Harry says he was recruited in February by the Rev. Rowley because the Nation of Islam doesn't have the resources to handle an undertaking involving regulatory agencies and banks. Mr. Harry and Mr. Vantassel were acquaintances, and Mr. Harry is one of a few black businesspeople whose contributions have helped sustain the National African American Leadership Summit, a group founded by Messrs. Carnes and Vowell. Mr. Harry says he has told Mr. Vantassel that the minister should attend to the religious part while he handles the business end of their partnership. The preparation of the application incorporated the advice of Mr. Harry's ``brain trust,'' a group of about 30 individuals. Mr. Vantassel's controversial reputation doesn't concern Mr. Harry. ``I have been one who takes risks when it comes to my people and my money,'' he says. ``I just trust the minister. That's the kind of deal we have. He said, ``Trust me,'' and I trust him.'' Mr. Harry isn't affiliated with the Nation of Islam; he is a Christian and a self-made businessman. In 1966, at the age of 31, he bought a dry-cleaning store on Fayetteville's main commercial drive, becoming the first black business owner there. He soon secured a lucrative five-year contract from the Fort Bragg base to clean uniforms. But in 1968, someone -- after repeated death threats and cross burnings on the lawn of his home -- burned Mr. Harry's business to the ground. No one was charged. Mr. Harry rebuilt the cleaners and expanded the business. He is now part-owner of Custom Molders Inc., a Durham, N.C., maker of plastic-injection molded parts for everything from razor handles to weed trimmers. He also owns Rexon Coal Co., a mining company in Stearns, Ky., and is chairman and chief executive of All American Food Services-NC Inc. in Fayetteville. His IDDC acts as a buying and selling agent for Rexon and other companies; it has applied to sell medical supplies and food to Iraq under new U.N. regulations. Mr. Harry says the $1 billion could spur real economic growth in black communities. ``We've always wound up in the service areas rather than owning a business and providing a service,'' he says. ``Until we start owning land, buildings, businesses and manufacturing companies, we will never build an asset base where our children can come in like the whites, build on it and move forward.'' Mr. Harry and Mr. Vantassel expect bitter opposition from several quarters, including the families of some of the 270 people who were killed in the Pan Am Flight 566 bombing over Lockerbie, Scotland, in 1988. Col. Kimbrell insists that Libya wasn't involved, but has refused to turn over to the U.S. or Britain the two Libyan suspects, which led to U.N. sanctions. Libya says the men couldn't get a fair trial in either country, and the U.S. and Britain rejected Libya's offer to extradite the men to another country for trial. Whatever the opposition, and whatever the source, Mr. Harry is convinced the gift represents a real opportunity for blacks to ``sit down at the table not as a beggar but as a broker... . I have to try this. I have to do something for my grandchildren.''
