French spy who helped bomb Rainbow Warrior tracked down 32 years later

Christine CabonA French spy who infiltrated the environmentalist group Greenpeace and in 1985 helped bomb the organization’s flagship, the Rainbow Warrior, has spoken to the media for the first time. The British-based activist organization had purchased the trawler from the British government in 1977 and used it to carry out maritime research and other operations. In July 1985, the Rainbow Warrior, captained by the American environmental activist Peter Wilcox, was docked at the port of Auckland, New Zealand. It was being prepared to lead a flotilla of vessels to the French Polynesian atoll of Mororoa, in order to try to stop a planned nuclear test by the French military.

But on the night of July 10, 1985, two large explosions nearly split the ship in two, causing it to sink in less than five minutes. One of the Rainbow Warrior’s passengers, the Portuguese photographer Fernando Pereira, drowned after he boarded the sinking ship in order to retrieve his cameras and lenses. Greenpeace blamed the government of France for the attack on the ship, but Paris denied any involvement. It later emerged, however, that the blasts had been caused by two plastic-wrapped explosive devices that had been placed on the exterior of the Rainbow Warrior’s engine room and on its propeller blades. The explosive mechanisms had been placed there by two divers working for the Direction Generale de la Securite Exterieure (DGSE), France’s external intelligence service. Read more of this post

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Ex-CIA contractor says Pakistan’s leaders helped him escape murder charges

Raymond Allen DavisA former contractor for the United States Central Intelligence Agency, who was released from a Pakistani prison in 2011 despite being implicated in a double murder there, says he was freed with the help of senior Pakistani officials. Raymond Allen Davis was a CIA contractor posted in the US consulate in Pakistan’s Punjabi capital, Lahore, which is also the country’s second-largest city. It has been suggested that, for a while, Davis was the CIA’s acting station chief in Lahore, thus technically the most senior American intelligence officer in Punjab.

On January 27, 2011, while driving in downtown Lahore, Davis opened fire against two men riding on a motorcycle, killing them instantly. Soon after the incident, Davis appears to have contacted the US consulate in Lahore, which rapidly dispatched a consular vehicle to remove him from the scene of the shooting. However, the vehicle was unable to reach Davis, who was surrounded by an angry crowd. Unable to pick up Davis, the car then returned to the consulate after running down and killing a motorcyclist who was unconnected with the earlier incident. Eventually Davis was arrested and charged with double murder and illegal possession of a firearm. The Pakistani government dismissed Washington’s assertion that Davis was an accredited diplomat, and was thus not subject to Pakistan’s legal system because of his diplomatic immunity. With public opinion in Pakistan heavily against Davis, the case sparked a diplomatic crisis between Washington and Islamabad. Unexpectedly, however, Davis was released in March of the same year, after the families of the two men he killed appeared in court and said they forgave him and wanted him to be pardoned. It later emerged that the families of the murdered men had been given a total of $2.4 million as compensation for their deaths.

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German parliament report on NSA spying contains little consensus

Angela MerkelA lengthy parliamentary report on American intelligence activities in Germany was presented last week in Berlin, but was condemned by opposition parties as insufficient and incomplete, prompting calls for a new investigation. The parliamentary probe was initiated in 2013, following a series of revelations by Edward Snowden, a former employee of the United States Central Intelligence Agency and National Security Agency who defected to Russia. Snowden alleged that both agencies spied on Germany, with the NSA going so far as to eavesdrop on the personal telephone communications of German Chancellor Angela Merkel. The allegations shocked German public opinion, and resulted in the unprecedented expulsion of the CIA station chief in Berlin —the most senior US intelligence official in the country. However, the parliamentary probe soon broadened its scope to include subsequent allegations that German intelligence agencies collaborated with the NSA in spying against other Western countries.

Last Wednesday, after three years of work, the parliamentary committee, known officially as the “German Parliamentary Committee Investigating the NSA Spying Scandal”, presented its findings to the Bundestag. They consist of thousands of pages of technical details concerning interception methods and capabilities. However, the final report fails to draw concrete conclusions, and its concluding section does not reflect a consensus among the committee’s members. The section begins by noting that, “unfortunately, despite an initial shared conviction by all parliamentary groups about the need for the investigation, substantial disagreements emerged between the governing and opposition groups, concerning the methodology and goals of the committee’s work”. Read more of this post

Saudi Arabia’s recently deposed crown prince reportedly under house arrest

Prince Mohammed bin SalmanOne of Saudi Arabia’s most powerful men, who until last week was first in line to the throne, is reportedly under house arrest. If true, this development would reveal a deep and growing division within the ruling House of Saud. Until the early hours of June 21, Crown Prince Mohammed bin Nayef, 57, was the officially appointed successor to the Saudi ruler, King Salman. In addition to running the country’s feared security services, Prince Nayef was close to Washington, and is a trusted friend of numerous American intelligence officials. But on June 21, King Salman announced radical changes to the line of succession to the throne, stunning the Saudi establishment and international observers alike. The announcement, which came shortly after midnight, completely deposed Prince Nayef from the line of succession.

In Prince Nayef’s place, the King appointed his favorite son, Mohammed bin Salman, 31, who is now the new crown prince. Prince Salman was virtually unknown until 2015, when his father became monarch. He quickly appointed him to Secretary of Defense in the oil kingdom. Since that time, Prince Salman —the world’s youngest defense minister— has been tasked with overseeing Saudi Arabia’s oil monopoly, and finding ways to diversify the country’s economy. Additionally, he has raised eyebrows at home and abroad, by promoting an aggressive foreign policy in Yemen and Syria. He is also believed to have spearheaded Riyadh’s aggressive foreign-policy maneuvers in relation to Iran and Qatar.

Since the day of the surprise announcement, Prince Nayef has virtually disappeared from public life. It subsequently emerged that he was also fired from his post as Minister of Interior, and replaced by one of his nephews. According to The New York Times, the reason for the prince’s disappearance is that he has been virtually under house arrest. Citing “four current and former American officials” and an unspecified number of “Saudis close to the royal family”, The Times said on Wednesday that Prince Nayef has been “confined to his palace” in the coastal city of Jeddah. The paper alleged that, as soon as he went to his palace in the early hours of Wednesday, the prince found that his trusted security guards had been secretly dismissed and replaced with men who are loyal to Prince Salman.

Sources in the Saudi government, who are close to the king, have dismissed The Times’ report as “baseless and false”. However, no member of Prince Nayef’s inner circle has come forward to dismiss the allegations about his house arrest. If true, the reports would suggest that there is a deep split inside the Saudi royal family and that Prince Nayef, along with members of his immediate family, are being kept in isolation from their supporters.

Meanwhile, there have been no comments from Western governments on Prince Nayef’s surprise dismissal. Regular intelNews readers will recall a leaked German intelligence report from 2015, in which Prince Salman —who is now first in line to the throne— was described as spearheading an “impulsive policy of intervention”. The report, authored by the German Federal Intelligence Service, known as BND, warned that Prince Salman’s radical maneuvers were jeopardizing the Kingdom’s relationship with important regional allies and with Washington. Things have changed since then, however, with the ascent of Donald Trump to the White House. The new American president and his senior aides have repeatedly expressed strong support for King Salman and his son.

Author: Joseph Fitsanakis | Date: 30 June 2017 | Permalink

North Korea secretly imports Russian oil through Singapore, says defector

Ri Jong-hoThe government of North Korea uses intermediary firms in Singapore to import thousands of tons of Russian oil each year, according to a senior North Korean defector who has spoken publicly for the first time since his defection. Ri Jong-ho was a senior official in the Democratic People’s Republic of Korea under its previous leader, the late Kim Jong-il. He rose through the ranks of the Workers’ Party of Korea and was directly mentored by Kim, who personally appointed him to a post in Bureau 39. The powerful body is in charge of securing much-needed foreign currency for Pyongyang —often through illegal activities— and partly funds the personal accounts of the ruling Kim dynasty.

From the mid-1990s until his 2014 defection, Ri spent nearly three decades in senior positions inside the DPRK. These included the chairmanship of the board of the Korea Kumgang Group, a state-managed firm that oversees large-scale economic activity in North Korea, such as constructing energy networks and commissioning oil and natural-gas exploration. Between 1998 and 2004, Ri lived in the Chinese city of Dalian, where he headed the local branch of the Korea Daesong Trading Corporation. The Pyongyang-based company facilitates North Korea’s exports to China in exchange for Chinese goods and products.

But Ri’s mentor, Kim Jong-il, died in 2011. His son and successor, Kim Jong-un, engaged in a brutal campaign to remove his father’s advisers and replace them with his own people. During that time, said Ri, thousands of senior and mid-level officials were purged, some physically. Frightened and disillusioned, Ri defected with his family to South Korea in October 2014; fifteen months later, in March 2016, he arrived in the United States. On Tuesday, the Voice of America published Ri’s first public interview since his defection.

Among other things, the former Bureau 39 official said that the North Korean regime sustains itself with the help of oil it imports from nearby countries. One of the regime’s main sources of energy is Russia, which supplies Pyongyang with between 200,000 and 300,000 tons of oil every year. But the trade does not occur directly, said Ri. Moscow sells the oil to energy-trading companies in Singapore. These mediators then sell the oil to the DPRK through separately agreed contracts, so that Russia does not appear to be providing Pyongyang with desperately needed oil. The so-called “Singapore line” was established by North Korea in the 1990s, said Ri, and appears to still be active. In addition to Russian oil, the DPRK imports approximately 500,000 tons of oil per year from China, through pipelines, according to Ri.

Author: Joseph Fitsanakis | Date: 29 June 2017 | Permalink

Ukrainian military intelligence commander killed in Kiev car explosion

Colonel Maksim ShapovalA senior military intelligence officer, who commanded a Ukrainian special-forces unit that fought against the Russians in eastern Ukraine, was killed on Monday when his car exploded in broad daylight in Kiev. Initially, the Ukrainian government sources simply said that the dead driver of the car was a member of the Ministry of Defense’s Main Directorate of Intelligence. Later, the casualty was identified as Colonel Maksim Shapoval, a senior commander of the Main Directorate of Intelligence, who led an elite special-forces unit. Subsequent media reports said that Colonel Shapoval’s unit had fought against Russian-backed guerillas in eastern Ukraine in the past year.

A police report said that Colonel Shapoval died instantly when his car exploded at an intersection in central Kiev. The explosion took place at 8:15 a.m. local time on Monday, and was reportedly caused by a powerful bomb that had been attached to the outer floor of the vehicle, right below the driver’s seat. A video taken at the scene of the explosion showed the charred frame of a silver-colored sedan in the middle of a city street, surrounded by debris.

A Ukrainian government spokesman said on Tuesday afternoon that Kiev was treating the incident as an act of terrorism. When asked about possible suspects, the spokesman said that Colonel Shapoval’s killing appeared to be the work of professionals. He added that investigators were looking for possible evidence of Russian state involvement in the attack. Authorities in Ukraine have repeatedly accused Russia of involvement in the extrajudicial killings of Ukrainian leaders or Russian dissidents since 2014, when Moscow illegally annexed the Ukrainian province of Crimea. Since then, the Kremlin is believed to be secretly supporting pro-Russian rebels who have taken over several regions of southeastern Ukraine. Ukraine’s Chief Military Prosecutor alleged on Tuesday that the killings of Colonel Shapoval and others were perpetrated by Russian intelligence operatives. He added that his office would launch a detailed investigation into Colonel Shapoval’s killing.

Author: Joseph Fitsanakis | Date: 28 June 2017 | Permalink

American spies use US Federal Reserve to monitor foreign banks

Federal Reserve Bank of New YorkAmerican intelligence services have made use of a little-known confidentiality exception to spy on the financial activities of foreign banks who have accounts with the United States Federal Reserve, according to Reuters. Established in 1913, the Federal Reserve System is the central banking structure of the US. It oversees and regulates the nation’s financial institutions, and is tasked with —among other things— maintaining the stability of the American financial system. Additionally, however, the Federal Reserve offers a host of financial services to official (government-owned or sanctioned) foreign institutions. Thus, over 250 foreign banks (typically central banks) from dozens of countries have deposited nearly $3.3 trillion in assets at the Federal Reserve Bank of New York, one of 12 Federal Reserve Banks in the US. Depositing assets at a US Federal Reserve Bank, allows these foreign ‘depository institutions’ to use the US Federal Reserve as a ‘custodial institution’. Through it, they get direct and immediate access to American debt markets, where they can trade directly in dollars — the reserve currency of the global economy.

As one would expect, the ‘custodial services’ provided to foreign state banks by the US Federal Reserve are subject to strict confidentiality rules. However, according to a report published yesterday by Reuters, US intelligence agencies have found ways to circumvent these rules and monitor the activities of foreign banks who use the US Federal Reserve’s services. The news agency said it interviewed “more than a dozen current and former senior [Federal Reserve] and [US] Treasury [Department] officials”, including executives and division heads. It concludes that the US Intelligence Community has “leveraged the [US Federal Reserve’s] position at the center of global finance” to gain insights into the financial activities of foreign governments.

Specifically, the report alleges that American spies have made regular use of a little-known “need to know” exception clause to the US Federal Reserve’s confidentiality rules, and have been able to monitor the financial activities of selected foreign governments. These include Libya, Yemen, Iraq, China, Russia and Turkey, among others, says Reuters. In its report, the news agency says that the exception clause has been used at least seven times in the past 15 years. In some of these instances, the intelligence gathered led to “specific US responses” in relation to the financing of terrorism, or large-scale money-laundering. In other cases, the intelligence gathered helped Washington closely monitor market activity in areas of interest around the world, says Reuters.

The news agency contacted the New York Federal Reserve Bank, and was told by a spokesperson that the exception to the Federal Reserve’s confidentiality rules “has been used on rare occasions and on a limited basis”. These instances related to “issues as compliance with sanctions requirements and anti-money laundering principles”, said the spokesperson. The US government did not respond to calls for comments.

Author: Joseph Fitsanakis | Date: 27 June 2017 | Permalink