BAHRAIN OIL DEAL

IN EARLY 2000, WE DECIDED TO BUILD A HOUSE IN KERALA. IT came about in an unlikely fashion. We had become regular attendees of the FOKANA bi-annual conventions ever since we attended the fourth such meet in 1990. It was during the 8th FOKANA convention in Rochester, New York in 1998 that we came to hear of a unique gated residential community for NRIs being developed in Kerala.
Once we started making further enquiries we were pleasantly surprised that Kusumam's family friend Alexander was the developer of this gated community in Trivandrum called Aswathy Gardens. Over the next few months, we purchased land in the community and signed a contract with the developer to build a house for us as per our specifications.
He had already had nearly two dozen US Malayalis as his clients and he happily agreed to build our house. Over the next couple

of years, we got to know Alexander quite well. He was the kind of consummate deal-maker who knew government officials in high places in the Gulf countries, especially in Bahrain, where he used to work and still had an apartment.
One day he told me during one of our regular telephone calls that he had talked to many about my business in the US. He could not hide his excitement when he told me how he had received word from a certain Sheikh Mohammed who was said to be close to the royal family and a cousin of Bahrain ruler Hamad bin Isa Al Khalifa.
I was a bit cautious at first, as is my nature, when confronted with such too-good-to-be-true stories. However, Alexander convinced me that this was a genuine case. I agreed to meet with Sheikh Muhammad at a mutually convenient time.
I did my due diligence and found out that there was one such person who was among the wealthiest people in Bahrain. He was also close to the government. During my next trip to India, I agreed to meet with Sheikh Muhammad and Alexander wanted to get on with it without any delay.
I had not brought any suits with me to India because I hardly had to wear one, as my visits were limited to family and friends. So I had to go buy a suit from one of the few stores in Trivandrum that sold suits those days. I bought one from the limited choices they offered. The next day I left Trivandrum for Bahrain with Alexander. I remember we traveled business class, befitting the occasion.
When we landed there, two gentlemen came on board and escorted us out of the aircraft, totally bypassing the due immigration process. It was a message that we were being given VIP treatment. We were escorted to a limousine waiting inside the airport premises.
They dropped both of us at Alexander's apartment and told us to be ready in a short while. They promised to come as soon as we were ready to be taken to the meeting. We were ready in an hour and sure enough car was there to pick us up. Both of us got in the car and we were on our way to Sheikh Mohammed's palace.
In less than half an hour, we left the main road and entered a long-winding private road. Soon, we got a view of this huge palace looming large on the horizon. As we approached the palace gates, the elaborate security waved us in. When we arrived at the main entrance of the palace half a dozen people were waiting for us.
They opened the car doors and escorted us into the palace. For a moment I forgot I was just a common man from Kumbanad, settled in the US, who ran an aircraft repair station to make a living. Because, at that moment, I was made to feel like royalty.
There were more men along the way. Once we entered this gigantic hall with chairs all against the walls, I could see two people sitting in isolation at the far end of the hall.
We were escorted towards them. They both stood up to greet us.
One was the Sheikh himself and the other was his son. The Sheikh had asked me where I was from. I told him "Seattle, Washington". It was clear that he was not comfortable speaking English. But he told me he had friends in Oregon, the neighboring state of Washington. It was clear that he was familiar with the lay of the land in the US.
To make conversation, I asked him whether he had many friends. He nodded in the affirmative and said, "Yes. Some good friends some not so good." His son who was educated outside the country spoke good English, so when I made a presentation about my business, I kept looking at his son to make sure he was on the same page. But it was the Sheikh I addressed to say that I was looking forward to a long-term association with him in the aviation business.
And waited for him to tell me what his proposition was.
He immediately corrected me and said that he had a business proposal for me but it was not in the aviation sector. I told him that I was keen to hear his proposal. Imagine my utter surprise when he said he would like to sell me crude oil at less than 50 per cent of the prevailing market price for crude. He was gesticulating expansively and his face was wreathed in smiles when he declared that I was free to sell at whatever rate I wished in the US, the profit was all mine.
I struggled to keep up a calm face, as I immediately suspected it was not an above-the-board proposal that we were discussing. I remember nodding my head a lot, as if agreeing it was a great proposal, all the while deliberating over what my response should be.
I chose my words with great care as I told him that I would need the US State Department's permission to import crude in large volumes and hence wanted to contact them before I could commit.
All of a sudden, he categorically said, "No state department." It was abrupt, with a sense of finality, conveying the message unambig-uously that the deal would have to work around the US government regulations. Immediately I realized that they were talking about selling embargoed Iraq oil, though it was not said openly.
This could end in jail time. I needed to come up with an excuse, without hurting their feelings. I told the Sheikh that I would present the case to the board of directors of my company immediately on my return to the US and would get back to him soon after.
All I could think of was how to get out of there as soon as I could without triggering an incident. As soon as the Sheikh signaled the end of the meeting, we shook hands and were escorted out to the entrance where the car was waiting to drop us back.
By the time we reached Alexander's apartment, I was shaking, as I rewound the entire episode in my mind. The seriousness of such an illegal business proposal and its potential fall-out made me shudder.

The very next day I returned to the US, directly from Bahrain. I did not bother to say anything to Alexander but he could sense that I was far from pleased about placing me in such a difficult situation. In a week or so, the Sheikh's office contacted me to follow up on my decision. My response was very polite. I said that my company's board of directors had rejected the proposal, as we could not work outside the law.

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