Snowden exposes ‘unprecedented’ US intelligence budget details

Report coverBy JOSEPH FITSANAKIS | intelNews.org |
In what experts call an unprecedented move, The Washington Post has published excerpts from the classified United States intelligence budget, obtained from American defector Edward Snowden. Snowden, a former technical expert for the Central Intelligence Agency (CIA) and the National Security Agency (NSA), is currently in Russia, where he has been granted political asylum. He gave The Washington Post a top-secret document containing the 2012 budget summary for the US National Intelligence Program. A new version of this document is produced each year by the United States Intelligence Community (IC). It provides Congressional intelligence committees with a detailed justification for the funds requested by the IC, while highlighting the objectives, priorities, successes and failures of American intelligence agencies. The Post published several charts and tables from the document, which show that the US intelligence complex is currently sustained at a financial level that exceeds that reached at any point during the Cold War. Moreover, funding for the IC appears to have doubled since 2001 and is up by a quarter since 2006. Perhaps the most unexpected feature in the leaked document centers on the revelation that funding for the CIA is 50 percent higher than that of the NSA, which had long been seen by outsiders as the best-funded American intelligence agency. It appears, however, that the NSA, which specializes in communications interception, and is by far the largest American intelligence agency, received just over $10 billion last year, way below the $15 billion given to the CIA. The latter’s budget also exceeded that of the National Reconnaissance Office, a highly technical and very expensive government agency that maintains America’s spy satellites. In the words of The Post, the CIA’s requested budget “vastly exceeds outside estimates” and represents in excess of a quarter of the entire US intelligence budget. Another interesting revelation is that the US IC places Israel alongside Cuba, China, Russia and Iran, as a “priority target” when it comes to counterintelligence —meaning efforts to prevent these countries from spying on the US. Read more of this post

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CIA shuts down office that declassifies historical materials

CIA headquartersBy JOSEPH FITSANAKIS | intelNews.org |
The division of the United States Central Intelligence Agency that is responsible for weeding through and declassifying historical materials from the Agency’s archives is to close due to the sequester budget cuts. The CIA’s Historical Collections Division has been at the source of some of the most sensational declassification of American intelligence material in recent years, spanning several decades of postwar history. But it has now been disbanded due to budget cuts associated with so-called sequester. The widespread cuts were automatically imposed after the two political parties in Congress failed to compromise last year on the Federal budget. The sequester is an across-the-board budget reduction that affects every single agency or office operating under the US government. It is believed that the CIA dealt with the cuts by terminating an unknown number of agreements with outside contractors, some of whom were responsible for the declassification of historical documents. The Los Angeles Times, which reported on the story, quoted CIA spokesman Edward Price, who told journalists last week that the Historical Collections Division had been “moved into a larger unit” within the Agency in order to “create efficiencies”. He identified that unit as the CIA’s Office of the Chief Information Officer, whose Information Management Services handle all Freedom of Information Act requests from the public. Price assured reporters that the CIA remained faithful to declassifying historical material, which it described as part of its “public interest mission”. But The Times quoted several scholars who said that the disbandment of the CIA’s Historical Collections Division will almost certainly result in a reduced number of public disclosures. Read more of this post

News you may have missed #840

John KiriakouBy IAN ALLEN | intelNews.org |
►►S. Korea prosecutors might seek ex-spy chief’s arrest. Prosecutors said Monday they will decide sometime this week whether to seek an arrest warrant against Won Sei-hoon, who headed South Korea’s National Intelligence Service (NIS) for about four years until early this year. He is suspected of ordering agents to post a slew of politically sensitive comments on the Internet in order to sway public opinion in favor of the ruling party candidate prior to the December 19 national election. Won, who headed the NIS under former President Lee Myung-bak, has been barred from leaving the country pending investigation.
►►CIA self-described whistleblower writes about life in prison. In 2012, former CIA officer John Kiriakou pleaded guilty to violating the Intelligence Identities Protection Act. In January of this year, he was sentenced to 30 months in a low security prison in Loretto, Pennsylvania. In a letter released by his lawyer, Kiriakou describes his day-to-day life behind bars, from his own tiny cell to an almost anthropological study of the lunchroom and the relatively rare prison fights.
►►Comment: End the spy budget secrecy in Israel. Since the establishment of the Israeli state, the security establishment has enjoyed confidentiality with regard to the details of its budget, justified by the need to keep secrets from enemy intelligence services. This lack of transparency has impaired public scrutiny of security expenditure, which represents a large chunk of the Israeli economy. When the watchful eye is distant, the temptation is great to inflate job slots, exaggerate salary increments and hike up pension conditions.

British spy agency to scrap $140m IT system over security fears

DeloitteBy IAN ALLEN | intelNews.org |
Britain’s domestic intelligence agency, MI5, has decided to “accept defeat” and scrap a multimillion digital records management program over fears it could create a dangerous “intelligence vacuum”. The program, which has so far cost the British taxpayer over £90 million ($140 million) in payments to private consultants, was first conceived in the run-up to the London 2012 summer Olympic Games. While evaluating terrorist-related threats posed by the hosting of the Games in the United Kingdom, British security officials decided that the government-wide intelligence-sharing system in place was archaic and in need of serious overhaul. They hired a group of senior IT management consultants from Deloitte, one of the world’s largest professional services firm, headquartered in New York, NY. The pricey corporate experts were tasked with helping MI5 digitally collate intelligence data collected or produced by all departments of the British government. Deloitte’s planning team had projected that the multi-million dollar system would be in place and operational by the summer of 2012, before the Olympic Games were held in London. This, however, proved wildly optimistic; Deloitte barely managed to scrape together a watered-down version of the promised records management program in late 2012. When the program was tested by MI5’s intelligence collection managers, it was found to contain serious errors that, according to British newspaper The Independent, could leave the country’s intelligence agencies “vulnerable and struggling with an intelligence vacuum”. When initially questioned about the Deloitte debacle by British lawmakers, MI5’s (now retired) Director, Sir Jonathan Evans, told the frustrated members of the British House of Commons Intelligence and Security Committee not to worry. Read more of this post

News you may have missed #819 (UKUSA edition)

Charles E. AllenBy IAN ALLEN | intelNews.org |
►►Aussie spies’ exemption from Freedom of Information laws to end? Currently, all Australian intelligence agencies are exempt from the operation of federal Freedom of Information (FOI) legislation that allows the public and journalists to seek access to government records. But now Australian Information Commissioner John McMillan has called for the intelligence agencies to no longer be exempted from FOI laws. Professor McMillan and FOI Commissioner James Popple have made the recommendation in a 97-page submission to the review of FOI laws by former Defence Department secretary and diplomat Allan Hawke.
►►US spy agencies move towards single super-cloud. The US intelligence community is developing a single cloud computing network to allow all its analysts to access and rapidly sift through massive volumes of data. Now in its eighth month, the goal of the effort is to connect the Central Intelligence Agency’s existing cloud to a new cloud run by the National Security Agency. This NSA-run network consists of five other intelligence agencies and the FBI. Both of these clouds can interoperate, but the CIA has its own unique needs because it must work with human intelligence, which necessitates keeping its cloud slightly separate, according to Charles Allen, formerly Undersecretary of Homeland Security for intelligence and analysis.
►►Canadian Army struggles with intelligence-gathering. The Canadian Army is trying to hold on to its intelligence-gathering capability and its ability to disrupt spying in the face of budget strain, according to documents from the Canadian Department of National Defence. The Canadian Press, which obtained the documents, says the Army is “anxious to protect HUMINT network and to better resource its counterintelligence abilities”, but is worried that its shrinking budget in the post-Afghanistan War era will cause “degradation” in those disciplines.

US Senate blocks Pentagon plan to launch new CIA-style agency

The US Department of DefenseBy JOSEPH FITSANAKIS | intelNews.org |
Last week the United States Department of Defense flooded media outlets with press releases announcing the planned establishment of a new military intelligence organization that would rival the Central Intelligence Agency in both size and scope. Not so fast. The US Senate has just blocked the plan citing gross mismanagement of the Pentagon’s existing intelligence operations. The proposed Defense Clandestine Service centers on plans to build an extensive overseas intelligence network, run by the Pentagon’s Defense Intelligence Agency and based on the CIA model of stations located in large metropolitan centers. The DoD said that the new intelligence organization will help the US armed forces broaden their intelligence collection from the current concentration in Afghanistan and Iraq. But the Senate, which was asked to review and approve the plan’s financial requirements, submitted under the 2013 National Defense Authorization Act, has refused to do so. Moreover, it issued a written rationale, drafted by the Senate Armed Services Committee, in which it explicitly forbids the Pentagon using US taxpayers’ money to expand its overseas intelligence operations. According to The Washington Post, the reason for the plan’s rejection is two-fold. First, the Senate appears unhappy with the financial management of the DoD’s existing intelligence collection efforts. The Senate report cites serious concerns about the excessive financial cost and management failures associated with the Pentagon’s ongoing intelligence operations. It specifically mentions “poor or non-existent career management” for DoD intelligence operatives who are often transferred back to regular military units after undertaking “unproductive” assignments overseas, despite extensive intelligence training. The Senate Armed Services Committee’s report stipulates that, before it asks for more money to build the proposed new agency, the Pentagon must “demonstrate that it can improve the management of clandestine [human intelligence] before undertaking any further expansion”. Read more of this post

News you may have missed #807

Noor Inayat KhanBy IAN ALLEN | intelNews.org |
►►Britain to unveil statue of female SOE spy of Indian origin. Born in Moscow to an Indian father and an American mother, Noor Inayat Khan was in Paris when it fell to Nazi occupation. She immediately returned to London to volunteer for the war effort, joined the Women’s Auxiliary Air Force and was recruited by the Special Operations Executive (SOE). She was sent into France on a secret mission in June 1943, but was betrayed and captured a few months later. She was shot by the Nazis in Dachau in September 1944, aged 30, and was posthumously awarded the George Cross as well as the Croix de Guerre by France. She was one of only three women in the SOE to be awarded the George Cross.
►►US intelligence spending falls or second year in a row. The US government’s total spending on intelligence activities fell in 2012, the second year in a row of declining numbers after years of soaring security spending since the September 11 attacks in 2001. The Office of Director of National Intelligence, the top US intelligence authority, announced on Tuesday that total funding appropriated for the National Intelligence Program, covering activities of the CIA and high-tech spy agencies such as the National Reconnaissance Office, was $53.9 billion in Fiscal Year 2012, which ended on September 30. That was down from the $54.6 billion appropriated during Fiscal Year 2011, according to government officials and figures published by the private Federation of American Scientists.
►►Russia wants to park spy planes on French base. France has been asked by Moscow to allow two Russian spy planes to be deployed at a French base in Djibouti to help track down pirates. Russian Defense Minister Anatoly Serdyukov said last week that the Ilyushin Il-38 naval reconnaissance planes would improve Russia’s ability to spot pirates plaguing waters off the coast of Somalia. Djibouti is at the juncture of the Red Sea and the Gulf of Aden. The French base is home to several thousand French service members and a number of military aircraft.

South African intel officials faked threats to increase spy budget

ANC centenary celebrationsBy JOSEPH FITSANAKIS | intelNews.org |
The tendency of some spy agencies to overstate security threats in order to secure governmental funds is hardly novel. But officials in the South African Secret Service appear to have gone a step further: they allegedly paid some of their informants to make bogus threats against the government, in order to prompt an increase in counterterrorist funding. According to Pretoria News, which is owned by The Independent, South Africa’s largest newspaper consortium, the bogus threats were aimed at creating “a false impression of imminent, unprecedented attacks on black people and African National Congress (ANC) members”. The ultimate goal of the perpetrators, says the paper, was to benefit personally from an increase in counterterrorist funding, which is said to run at around R600 million (US$72 million) per year. The plan was carefully designed to coincide with the run-up to the ANC’s centennial celebrations, which took place in January of this year. In one case, an informant was paid by Secret Service officials to record a video message threatening an uprising by whites against the country’s black-majority government, unless the latter put an end to the occupation of white-owned farmland by landless peasants. One video, which made “chilling threats” against black Africans and members of the ANC, was made publicly available on YouTube, causing widespread concern and prompting the government to beef up security measures around ANC facilities in several areas of the country. The threats also led to an extensive government investigation. Read more of this post

News you may have missed #738

Gareth WilliamsBy IAN ALLEN | intelNews.org |
►►Pathologist says MI6 spy may have died alone. Leading British pathologist Richard Shepherd has told the BBC there is “credible evidence” that MI6 officer Gareth Williams died alone. Williams, a mathematician in the employment of Britain’s signals intelligence agency, GCHQ, was found dead in a padlocked sports bag at his home in Pimlico, London, in 2010. According to Dr. Shepherd, bags identical to the one Williams was found in, can be locked by someone inside the bag.
►►Turkey may indict Israeli officers Over Gaza flotilla raid. A prosecutor in Turkey has prepared indictments and recommended life sentences for four senior Israeli officers over the killing of nine activists aboard a Gaza-bound aid flotilla forcibly intercepted in international waters by Israeli commandos two years ago. The indictments, which have not been formally approved by the Turkish judiciary, could further strain relations between Turkey and Israel, which were once close but which deteriorated badly after the flotilla raid on May 31, 2010.
►►Czech secret services alarmed by drastic drop in funding. The BIS, Czech Republic’s counterintelligence service, is used to operating on Kč 1.149 billion (around US$60 million). According to the Finance Ministry’s plan, the agency’s budget will be reduced to Kč 911 million (US$45 million) in 2013. The news has prompted former interior minister and current member of parliament František Bublan to accuse the government of effectively leading to the spy service’s “liquidation”. But Finance Minister Miroslav Kalousek argues that all state institutions must cut back in order to help achieve a balanced budget by 2016.

News you may have missed #727

Jeffrey Paul DelisleBy IAN ALLEN | intelNews.org |
►►US government-authorized wiretaps increased in 2011. The US Justice Department sought 1,745 secret wiretapping warrants in 2011, an increase of 239 over 2010, according to correspondence sent to Congressional leaders and oversight committees. The secret warrants are governed under the Foreign Intelligence Surveillance Act (FISA) and are used in terrorist and espionage investigations by the FBI. The letter, dated April 30, 2012, also notes that the FBI issued 16,511 National Security Letters (NSLs) to obtain certain records and information in investigations. It further asserts that the requests were for investigations relating to 7,201 different US persons. The number of NSLs declined dramatically from 2010 when the FBI had sought 24,287.
►►Australia axes spy agency funding. Large budget cuts by the Australian Labour government, which is trying to engineer a federal budget surplus, are expected to affect funding for the country’s intelligence agencies. The six agencies of the Australian intelligence community have been given a collective budget of $81 million over four years, a figure that is $20.4 million lower than previous budgets. The government said that savings will be “redirected to support other national intelligence priorities”.
►►Canada spy case adjourned until June. The case of Jeffrey Delisle, a Halifax naval intelligence officer accused of espionage, has been adjourned until next month because his lawyer has not yet received all of the files in the case. Delisle is charged with communicating information to a foreign entity –probably Russia– that could harm national interests. Until 2010, Delisle worked for both Canada’s Chief of Defence Intelligence and at the Strategic Joint Staff, which oversees virtually every major aspect of the military’s domestic and international plans and operations.

News you may have missed #672

Janne KristiansenBy IAN ALLEN | intelNews.org |
►►Russian military intelligence to ‘change tactics’. Russian military intelligence is adjusting its work methods in response to the “worsening international situation”, Igor Sergun, the head of GRU —the country’s largest espionage agency— has told President Dmitry Medvedev. Currently, the GRU’s main focus is on “hot spots where terrorist and extremist groups are acting, regions with crisis situations, and also the sources and possible routes of illegal proliferation of nuclear materials and the components of weapons of mass destruction”, Sergun told Medvedev.
►►Norway spy chief quits in secrecy gaffe. Norway’s head of intelligence Janne Kristiansen has handed in her resignation because she said too much during a parliamentary hearing. According to a transcript, Ms Kristiansen, who until now headed the country’s Police Security Service (PST), told the hearing that Norway had agents working in Pakistan. According to reports Pakistan has asked the government of Norway to explain Kristiansen’s remarks.
►►Review of Australia’s spy community released. Public findings of the first independent review of Australia’s intelligence community in eight years were released on January 25. The 2011 Independent Review of the Intelligence Community acknowledges and justifies the Australian spy agencies’ unprecedented growth since September 11, which saw some agencies increasing their funding almost 500 per cent in a decade. Meanwhile, David Irvine, Director of the Australian Security Intelligence Organization, said in a rare public talk that future Australian spies would be recruited “from within our newly arrived migrant communities”.

News you may have missed #639

GCHQ

GCHQ

►►GCHQ will sell cyberdefense tech to private firms. The GCHQ, Britain’s signals intelligence agency, is to market some of its security technologies to companies in the private sector, in an attempt to bolster defenses against the foreboding threat of cyberwarfare. The UK government’s “cyber security strategy”, which was unveiled this month, has earmarked £650 million in public funding to set up a four-year National Cyber Security Program, a percentage of which will be used to collaborate with private companies. Click here for an excellent analysis on the public-private cybersecurity collaboration in Britain.
►►Was there a coup attempt in Trinidad? Many in Trinidad and Tobago were expressing skepticism yesterday about an alleged assassination plot, which Prime Minister Kamla Persad-Bissessar said had been uncovered against her and several of her ministers. Police said nearly a dozen people had been arrested, including members of the army and police, but authorities have not given more details, citing the need to maintain security in operations to dismantle the plot.
►►US Senators resist $7 Billion in spending cuts for spy satellites. The Obama Administration wants to stop incessant spending by Defense Department contractors, especially those who have wasted billions of US taxpayers’ money in failed spy satellite projects. But the contractors’ friends in Congress, including lawmakers on the US Senate Intelligence Committee, are trying to stop the White House from cutting a $7 billion commercial satellite program being developed by GeoEye Inc. and DigitalGlobe Inc. What else is new?

News you may have missed #627

Omar Suleiman

Omar Suleiman

►►Egyptian ex-spy chief appointed security adviser to Saudi Crown Prince. Saudi Arabia’s Crown Prince Nayef bin Abdul Aziz has appointed Egypt’s former Director of General Intelligence, Omar Suleiman, as his security advisor. From 1986 until his forced resignation in spring this year, Suleiman had been the main conduit between Washington, Tel Aviv and the government of Hosni Mubarak.
►►Russia’s spy chief in rare interview. It is very rare that the men that run Russia’s powerful intelligence services give detailed interviews. But that’s just what Alexander Shlyakhturov, the head of military intelligence service, known as the GRU, did earlier this month with the Russian newspaper Rossiyskaya Gazeta.
►►US intel agencies brace for budget cuts. After seeing spending double over a decade, US intelligence agencies are bracing for about $25 billion in budget cuts over the next 10 years. “We’re going to have less capability in 10 years than we have today”, said Director of National Intelligence James Clapper, who sits atop the 16 departments, agencies and offices that comprise the US intelligence community and spend a combined $80 billion a year.

News you may have missed #621

Pakistan

Pakistan

►►Pakistan denies spying on German forces in Afghanistan. Pakistani officials have rejected a German newspaper report that the country’s secret service spied on German security forces in Afghanistan. Without citing its sources, mass-selling weekly Bild am Sonntag reported on Sunday that Germany’s BND foreign intelligence agency warned its interior ministry that Pakistan had spied on 180 German police officers deployed in Afghanistan to train locals.
►►CIA expert says US government lacks security operating system. Industry is not providing the US government with the basic tools it needs to build a secure information infrastructure, according to Robert Bigman, chief of the CIA’s Information Assurance Group. “What we need is a secure operating system”, he said during a panel discussion at the Security Innovation Network showcase in Washington last month. “We gave up some time ago on the battle to build a secure operating system, and we don’t have one”.
►►US increased spy spending in 2011. The US Congress appropriated $54.6 billion for intelligence programs in the 2011 fiscal year, the Office of the Director of National Intelligence disclosed last week. The amount, which does not include what was spent on military intelligence, is a slight increase from the year before but could be the end of the upward trend, says CNN’s Security Clearance blog.

News you may have missed #614

James Clapper

James Clapper

►►US spy chief proposes double-digit budget cuts. Director of National Intelligence James Clapper on Monday said he has proposed double-digit budget cuts in intelligence programs to the White House because “we’re all going to have to give at the office”. Clapper, in a speech at the GEOINT conference in Texas, said his office had “handed in our homework assignment” to the Office of Management and Budget, “and it calls for cuts in the double-digit range, with a B (for billion), over 10 years”.
►►French spy chief charged with snooping on reporter. France’s opposition on Tuesday called for the resignation of Bernard Squarcini, head of the country’s domestic intelligence agency, the DCRI, after he was charged over spying on a journalist with the daily Le Monde.
►►Researcher forecasts new virus similar to Stuxnet. The discovery of an espionage computer virus in Europe similar to the virus that attacked Iran’s nuclear plants last year suggests that a new, similar cyberattack is about to launch, computer virus researcher Mikko Hypponen says. The new virus, Duqu, was first reported by security company Symantec on its blog Tuesday. Its code is very similar to that of Stuxnet, the virus detected last year that was designed to sabotage equipment at Iranian nuclear plants.

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