Australian spies use paid informants abroad to stop human smuggling

ASISAustralian law enforcement and intelligence agencies routinely use paid informants in Indonesia and Pakistan as part of a decade-old covert war against human traffickers in the Indian Ocean. This information has been revealed by The Australian newspaper in response to reports 1 last week that Australian authorities paid traffickers to turn around a boat transporting asylum-seekers to the country. After the reports came out, many members of the opposition Australian Labor Party blasted the government for bribing human traffickers, and calling the practice “disgraceful” and “unsustainable”. But new information published on Monday shows that, when the Labor Party was in government, it instructed the country’s law enforcement and intelligence agencies to recruit and pay informants from within the human-trafficking networks abroad.

According 2 to The Australian, the use of paid informants is part of a wider secret war between the Australian intelligence and security agencies and the trafficking networks, which began in 2001. This “covert war”, said the paper, is meant to identify the structure and operations of human-trafficking syndicates and stop the constant flow of tens of thousands of asylum-seekers to Australia. According to the paper, the Australian Secret Intelligence Service (ASIS) was the first Australian government agency to begin the practice. It was followed in 2005 by the Australian Federal Police, which also began stationing officers abroad and tasking them with running networks of informants. In 2009, ASIS received $21 million (US$16.5 million) from the Australian government to develop networks of agents in several countries where large human-smuggling cartels are known to operate. The agency used the funds to station officers in several Indonesian cities, as well as in Pakistani capital Islamabad, where it operates in coordination with the Federal Investigations Agency of Pakistan’s Ministry of the Interior.

The Australian quoted an unnamed Australian intelligence official who had access to the intelligence reports from the ASIS anti-smuggling operations. He told the paper that the use of informants who are members of smuggling gangs was the only effective way of eventually “collapsing these networks”. Meanwhile, the government of Australia has refused comment on the allegations of bribing human smugglers.

Author: Joseph Fitsanakis | Date: 17 June 2015 | Permalink: http://intelnews.org/2015/06/17/01-1716/


  1. B. LAGAN “Australia accused of bribing smugglers to take refugees away” The Times [13jun2015] 
  2. C. STEWART “Spies, police have paid Indonesian informers for years” The Australian [16jun2015] 

KGB officer who handled Aussie double spy is now Putin crony

Lev KoshlyakovBy JOSEPH FITSANAKIS | intelNews.org
A KGB intelligence officer, who handled an Australian double spy during the closing stages of the Cold War, now holds several prestigious corporate posts in Moscow and is believed to be close to Russian President Vladimir Putin. Lev Koshlyakov, 69, is director of corporate communications for two Russian airline companies, including the state carrier, Aeroflot, and a member of the prestigious Moscow-based Council for Foreign and Defense Policy. But from 1977 until 1984, Koshlyakov served as the press and information officer for the Russian embassy in Australian capital Canberra. Intelligence sources, however, told The Weekend Australian last week that Koshlyakov’s diplomatic status was in fact a cover for his real job, which was station chief for the Soviet KGB. During his stint in Canberra, Koshlyakov is believed to have handled an especially damaging mole inside the Australian Security Intelligence Organisation (ASIO), who was allegedly recruited by his predecessor, KGB station chief Geronty Lazovik. Canberra was alerted to the existence of the mole in 1992, when the United States Central Intelligence Agency (CIA), along with Britain’s’ Secret Intelligence Service (MI6), briefed Australian officials on information acquired from Russian defectors. Soon afterwards, a government-commissioned report produced by Australian former diplomat Michael Cook described Koshlyakov as “one of the most dangerous KGB officers ever posted” to Australia. Eventually, Koshlyakov was assigned to a desk job by the KGB, after his cover was blown in Norway, where he was also serving as KGB chief of station. The Norwegians expelled Koshlyakov in 1991 after accusing him of espionage activities that were incompatible with his official diplomatic status. Since his retirement, however, Koshlyakov has done well for himself, having been appointed to senior corporate positions —some say with the personal backing of Russia’s President Vladimir Putin. As for the ASIO mole he allegedly handled in the 1980s, The Australian reports that he was forced to retire in 1992, after he was identified by the CIA and MI6. There was insufficient evidence to try him, however, so he “lived out his retirement in Australia” looking nervously over his shoulder, says the paper.

News you may have missed #883

Oleg KaluginBy IAN ALLEN | intelNews.org
►►Indonesia, Australia renew intelligence ties. Australia and Indonesia have signed a pledge not to use intelligence to harm each other, signaling a resumption in cooperation, which had been suspended after last year’s spy scandal. Australian Foreign Minister Julie Bishop and her Indonesian counterpart, Marty Natalegawa, signed the “joint understanding of a code of conduct” in Nusa Dua, Bali, on Thursday.
►►Ex-KGB general says Russia has already won in Ukraine. Russia has already won “the real victory”​ in Ukraine, according to former KGB general Oleg Kalugin, who is now living in the United States. The “southeast of Ukraine, that’s part of the general battle between the Russians and Ukrainians, but it’s not as crucial as the real victory and pride of Russia —the Crimea, I mean”, he said on Thursday. Kalugin reiterated that he does not believe Russian president Vladimir Putin wants annex another region of the country. “It’s not in the interest of Putin”, Kalugin said. “His position as of today is fairly strong in the country, in his own country, so why put it at risk by moving further?”
►►China says Canadian couple were spies disguised as ordinary citizens. Kevin and Julia Garratt have been accused of stealing Chinese military and national defense research secrets. They were detained on August 4, 2014, but not formally arrested, and China has offered little information on what they are accused of doing. The couple ran a coffee shop near the border with North Korea, worked with Christian groups to bring humanitarian aid into North Korea, and worked to train North Korean Christians inside China. Their detention by China’s State Security Bureau has been seen by Canadian authorities as reprisal for the arrest of Su Bin, a Chinese immigrant to Canada suspected of masterminding the electronic theft of US fighter jet secrets.

Australia, Indonesia to end rift by signing joint spy agreement

 Abbott and YudhoyonoBy IAN ALLEN | intelNews.org
Australia and Indonesia are to end months of diplomatic friction by signing a joint agreement aimed at curbing their intelligence activities against each other. IntelNews readers will recall that Indonesia withdrew its ambassador from Canberra and terminated all military and intelligence cooperation with Australia late last year, after it emerged that Australian spies had targeted the communications of Indonesian President Susilo Bambang Yudhoyono and other senior Indonesian officials, while they were attending the 2009 G20 conference in London. Relations between the two countries worsened considerably in February of this year, when documents leaked by American defector Edward Snowden revealed that Australian intelligence spied on American law firm representing the government of Indonesia in a trade dispute with Washington. The documents, from February 2003, showed that the Australian Signals Directorate (ASD) purposely targeted the law firm because it represented the commercial interests of the Indonesian state. To make things worse, the leaked information showed that the ASD, which is responsible for signals intelligence and information security, offered to share the intelligence collected from the operation with its American counterpart, the National Security Agency. Following the revelation, the Australian and Indonesian governments were reportedly not on talking terms. But it has now emerged that Australia and Indonesia are to sign a mutually binding agreement titled “Joint Understanding of a Code of Conduct”, which, among other things, will prohibit Australia from using its intelligence agencies to harm Indonesian national interests. Australian Minister of Foreign Affairs Julie Bishop told Australia’s ABC network that the agreement would “make it quite clear” that “Australia would not use its […] intelligence resources to the detriment of […] Indonesia”. Read more of this post

News you may have missed #879

Mossad sealBy IAN ALLEN | intelNews.org
►►Israeli spy budget close to $2 billion. According to reports in the Israeli media, the 2014 budget for Israel’s secret services is 6.88 billion shekels, which amounts to US$1.97 billion). This figure represents an approximate increase of 4 percent compared to last year. The funds cover the operations of the Shin Bet, Israel’s domestic security service, and the Mossad, which is the country’s external covert-action agency.
►►Australia and France sign intelligence accord. Australia has struck a second intelligence-sharing agreement in less than a week, this time with France, as fears rise about the Syrian civil war becoming a hub for home-grown terrorism. The two countries have agreed, among other things, to share intelligence on their respective citizens who have gone to Syria to fight in that country’s civil war. A week earlier, Canberra had signed a similar intelligence-sharing agreement with the government of Indonesia.
►►Nazi spy could have changed course of D-Day. Days before the Normandy landings, the Lisbon-based Nazi spy Paul Fidrmuc got wind of the final details of Operation Overlord and sent an urgent message to Berlin. The Allies were not planning to land in Calais, as the Nazis thought and where they had massed 200,000 soldiers. Instead, he wrote, “the preferred plan is around La Manche”. But his dispatch was ignored by his Berlin handlers.

IRA ‘tried to kill Queen’s husband’ during Australia visit

Prince Philip and Queen Elizabeth in 1973By JOSEPH FITSANAKIS | intelNews.org
The Provisional Irish Republican Army tried to assassinate Prince Philip, the Duke of Edinburgh and husband of Queen Elizabeth II, during an official Royal visit to Australia in the early 1970s, according to a new book. The claim is detailed in the book Shadow of a Spy, written by Warner Russell, a veteran Australian reporter and retired military intelligence officer. The alleged assassination attempt was uncovered in Sydney on March 15, 1973, during the Prince’s two-day visit to Australia. While there, the Queen’s husband attended a conservation meeting and led an official opening ceremony of a Royal Australian Air Force war memorial in capital city Canberra. According to Russell, two “crude explosive devices” were discovered in Sydney at locations that had been scheduled to be visited by the British Royal entourage. The first device was detected in a trash can in Dowling Street, in Sydney’s downtown Potts Point neighborhood. The second device was found inside a luggage locker at Sydney’s Central Station, a few miles away from the location of the first bomb. The book claims that the two other “suspicious packages” were found, one in a local government building located across the street from an officer’s club that the Prince was due to visit, and another in a trash can at Taylor Square, less than a mile from Central Station. Eventually, the two “suspicious packages” were determined to be “decoys”, says Russell. But the other two devices contained explosive material and were defused by an Australian Army bomb disposal team before being secretly taken to a forensic laboratory for examination. Russell claims that the bombs were defused just minutes before Prince Philip’s group arrived at the two Sydney locations, and Australian authorities were so nervous that they ordered the Prince’s motorcycle escort and protection team to “take evasive action” as they approached Dowling Street. Read more of this post

Australia spied on US law firm representing Indonesia in trade talks

Australian Signals DirectorateBy JOSEPH FITSANAKIS | intelNews.org
Australian intelligence spied on an American law firm representing the government of Indonesia in a trade dispute with the United States, according to leaked documents. The documents, from February 2003, show that the Australian Signals Directorate (ASD) specifically targeted the law firm because it represented the commercial interests of the Indonesian state. The ASD is Australia’s intelligence organization responsible for signals intelligence and information security. The leaked documents also show that that the Australian spy agency offered to share the intelligence collected from the operation with its American counterpart, the National Security Agency (NSA). The New York Times, which published the leaked information, said the operation appeared to have been aimed strictly at subverting the Indonesian government’s international commercial interests and had nothing to do with national security. The paper said it acquired the documents from Edward Snowden, an American intelligence defector currently living in Russia, who used to work for the NSA and the Central Intelligence Agency. The leaked papers do not specify the precise trade negotiations between Washington and Jakarta, which appear to have been targeted by the ASD. Nor do they identify the American law firm spied on by the Australians. But the paper suggested that Mayer Brown, one of the world’s largest law firms, with offices in over 22 cities around the globe, was acting as the Indonesian government’s legal consultant at the time the leaked documents were drafted. A memorandum included in the leaked documents notes that the ASD had “been able to continue to cover the [trade] talks [between the US and Indonesia], providing highly useful intelligence for interested US customers”. Read more of this post

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