CIA whistleblower complains of seven-year inaction by Agency’s inspector general

CIAA contractor for the United States Central Intelligence Agency has complained in an interview that no action has been taken in the seven years since he revealed a “billion-dollar fraud” and “catastrophic intelligence failure” within the Agency’s ranks. John Reidy argues that his case illustrates the unreasonable delay that impedes investigations by whistleblowers like him inside the CIA. Individuals like him, he argues, are forced to seek justice through leaks to the media, something which could be avoided if the CIA’s Office of the Inspector General addressed concerns more promptly.

Reidy, 46, from Worcester in the US state of Massachusetts, joined the CIA in 2003, after graduating with a law degree from the University of San Francisco. But he left the agency soon after joining, initially to work for a security contractor before setting up his own company, Form III Defense Solutions. He continued to work with the CIA by subcontracting his services, focusing on Iran. Reidy’s company developed an intelligence study guide for Iran and advised the CIA on the use of human intelligence (known as HUMINT) in the Islamic Republic.

In 2010, Reidy submitted two complaints to the CIA’s Office of the Inspector General, the Agency’s internal watchdog that is tasked with investigating whistleblower allegations. The first issue related to what Reidy describes as large-scale “fraud between elements within the CIA and contractors”. The second issue involved a “massive [and] catastrophic” intelligence failure “due to a bungled foreign operation”. When he filed his concerns with the OIG, Reidy was hoping that attention would be given to his claims right away. However, seven years later, his case is still “gathering dust” at a CIA office, he says. When he realized that no progress had taken place in several years, a frustrated Reidy forwarded his case —which includes copies of 80 emails and nearly 60 other documents— to Senator Chuck Grassley, chairman of the US Senate Committee on the Judiciary. He also reached out to the McClatchy news service with his concerns.

The secrecy rules that apply to those who work for the US Intelligence Community prevent Reidy from disclosing details of the alleged fraud and intelligence failure, or from specifying the country in which these incidents took place —though it seems from his intelligence résumé  that they probably involve Iran. But in an interview with McClatchy news service, the intelligence contractor voiced grave concerns about the internal investigation process in the CIA. “I played by the rules [and] they are broken”, he said. “The public has to realize that whistleblowers [like me] can follow all the rules and nothing gets done”, added Reidy. He went on to warn that if the CIA does not improve its internal investigation system, leaks to the media “may grow worse”.

McClatchy contacted the CIA about Reidy’s concerns and was told by a spokesperson, Heather Fritz Horniak, that, “as a general matter, [the CIA does] not comment on ongoing litigation”.

Author: Joseph Fitsanakis | Date: 14 July 2017 | Permalink

Russian aid center in Serbia rejects claims that it is an intelligence base

Russian-Serbian Humanitarian CenterStaff at a Russian disaster relief center in southern Serbia have rejected claims by American officials that the facility operates as an espionage arm of Moscow’s foreign policy in the Balkans. The Russian-Serbian Humanitarian Center was built in 2012, at a cost of nearly $40 million, following an agreement between Belgrade and Moscow. Its stated mission is to “provide humanitarian emergency response in Serbia and other Balkan states” through the provision of humanitarian assistance to those in need and training local emergency response crews. The center is located in the outskirts of Serbia’s fourth largest city of Niš, not far from the country’s border with Kosovo, a former Serbian province that unilaterally declared independence in 2008. Serbia refuses to recognize Kosovo’s independence, a decision that is strongly backed by Russia. It is also close to the headquarters of the North Atlantic Treaty Organization’s peacekeeping force stationed in Kosovo, which houses 4,000 international troops, including 600 Americans.

Western officials have raised concerns that the disaster relief center is in reality an intelligence base, from which Russia conducts some of its espionage operations in the Western Balkans. It has also been suggested that the center could operate as a military base in a potential Russian military operation in the former communist state. In June, the United States Deputy Assistant Secretary of State for European and Eurasian Affairs, Hoyt Brian Yee, publicly described the compound as “the so-called humanitarian center” in Serbia. Speaking during a US Senate hearing on southeastern European politics, Yee said the Department of State was concerned about the center’s unofficial use. He also expressed reservations about Moscow’s request that the Serbian government grants the center diplomatic immunity, similar to that which covers the activities of the Russian embassy in Belgrade.

Moscow responded to American allegations of espionage by inviting local and international media representatives to the center on Wednesday. The center’s co-director, Viacheslav Vlasenko, told reporters that the center was “very open”, adding that its staff consisted of 15 Serbs and five Russians who were dispatched to Serbia from Russia’s Ministry of Emergency Situations, known as EMERCOM. Vlasenko said that Moscow’s request for diplomatic immunity for the center was solely aimed at reducing the annual taxes that the facility had to pay.

Regular readers of intelNews will recall allegations made last October by authorities in Serbia’s neighboring state of Montenegro —later repeated by Britain— that nationalists from Russia and Serbia were behind a failed plot to kill the country’s then-Prime Minister Milo Dukanović and spark a pro-Russian coup in the country. The allegations surfaced after 20 Serbians and Montenegrins were arrested by police in Montenegro on election day, October 16, as Montenegrins were voting across the Balkan country of 650,000 people. In response to allegations that the coup had been hatched in neighboring Serbia, Serbian Prime Minister Aleksandar Vučić said that he would not allow Serbia to “act as the puppet of world powers”, a comment that was clearly directed at Moscow. Russia has vehemently denied the allegations.

Author: Joseph Fitsanakis | Date: 13 July 2017 | Permalink

Russia allegedly planning to expel 30 American diplomats in a few weeks

US embassy in MoscowRussia is planning to expel approximately 30 American diplomats from its territory, and seize buildings and property belonging to the United States Department of State, according to Russian media reports. The expulsions will be in response to the expulsion last December of 35 Russian diplomats stationed in the US by the administration of President Barack Obama. In addition to expelling the diplomats, Washington also reclaimed two “recreational facilities” (in reality intelligence outposts) that were used by the Russians in New York and Maryland. The White House said that the expulsions were ordered in response to alleged efforts by Russia to interfere in the 2016 US presidential election.

Observers, including the present author, were confident at the time that the Kremlin would respond in kind. In a surprising move, however, the Russian President Vladimir Putin said he would not respond to Mr. Obama’s move, in the hope that US-Russian relations would improve with the arrival of the new president in the White House. He added that Russia reserved the right to retaliate at a later time. Moscow’s response was met with praise by the then-president-elect Donald Trump and his transition team.

But Russia’s hopes for warmer relations with the US under Mr. Trump’s leadership do not seem to be materializing. A recent article in the daily Russian newspaper Izvestia reported that the Kremlin thought it was “outrageous” that the Trump White House had not yet returned the two seized compounds to the Russian Ministry of Foreign Affairs and not rescinded the expulsions of the 35 diplomats and their families. It also claimed that President Putin raised the issue with his US counterpart during their July 7 meeting in the German city of Hamburg. The Moscow-based newspaper quoted unnamed senior Russian officials, who said that Russia was preparing to expel dozens of American diplomats and seize US diplomatic facilities soon.

It appears that Russia will wait until the upcoming meeting between the US Undersecretary of State Thomas Shannon and the Russian Deputy Foreign Minister Sergei Ryabkov, which has been scheduled for later this month in St. Petersburg. If no US assurances for the return of the compounds and diplomats are made at that time, Moscow will proceed with its tit-for-tat plan. When asked about Izvestia’s article, the Russian Minster of Foreign Affairs, Sergei Lavrov, replied that the Kremlin was “weighing specific measures” in response to last December’s expulsions of Russian diplomats from the US. However, Mr. Lavrov said he did not want to elaborate at the present time, while also refusing to deny the newspaper’s allegations.

Author: Joseph Fitsanakis | Date: 12 July 2017 | Permalink

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

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.

Read more of this post

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

Yuri Drozdov, handler of Soviet undercover spies during Cold War, dies at 91

Yuri DrozdovGeneral Yuri Ivanovich Drozdov, who held senior positions in the Soviet KGB for 35 years, and handled a global network of Soviet undercover officers from 1979 until 1991, has died at the age of 91. Drozdov was born in Minsk, Soviet Belarus, in 1925. His father, Ivan Dmitrievich Drozdov, was an officer in the tsarist army who sided with the communists in the 1917 Bolshevik Revolution. After serving in World War II, Yuri Drozdov joined the KGB in 1956. Following his training, he was appointed liaison officer between the KGB and East Germany’s Ministry of State Security, commonly known as the Stasi.

His knowledge of East German intelligence affairs prompted his involvement in the famous 1962 spy-swap between the United States and the Soviet Union. The Soviets surrendered the American pilot Francis Gary Powers, who had been captured in May 1960, when the U-2 spy plane he was piloting was shot down over Soviet airspace. In return, they received Rudolf Abel (real name Vilyam Fisher) a Soviet undercover spy who was captured in New York in 1957, posing as an American citizen. From 1964 until 1968, Drozdov was stationed in Beijing, China, where he served as the KGB rezident, effectively the agency’s chief of station. He returned to Moscow and in 1975 was posted under diplomatic cover in the United States, where he commanded the KGB’s station in New York until 1979.

Upon his return to the USSR, Drozdov was promoted to chief of the KGB’s Directorate S, which handled the agency’s worldwide network of so-called illegals —intelligence officers serving abroad without official cover or formal connection to the Soviet Union. Shortly after his return to Moscow, Drozdov also headed Operation STORM-333, a daring attack on the presidential palace in Afghanistan, during which Soviet special forces killed Afghan President Hafizullah Amin and essentially fired the opening shots of the decade-long Soviet-Afghan war. The experience prompted Drozdov to recommend to his superiors the establishment of a new KGB special-forces unit. It was created in 1981 under the name Vympel (Pennant) and headed by Drozdov himself. He commanded several Vympel missions in and out of the USSR before resigning from the KGB in 1991.

Little is known about the specifics of Drozdov’s death. It is believed that he died on June 21, surrounded by his family. The Russian Foreign Intelligence Service (SVR), a successor agency of the KGB, issued a brief statement commemorating Drozdov’s service. It was followed by a statement issued by the office of the Russian President Vladimir Putin, which praised Drozdov as “a legendary spy, outstanding professional […], incredible person and true patriot”.

Author: Joseph Fitsanakis | Date: 26 June 2017 | Permalink

German intelligence agency spied on thousands of targets in the United States

BND GermanyThe foreign intelligence service of Germany spied on at least 4,000 targets in the United States from 1998 until 2006, according to a leaked document published yesterday by leading German newsmagazine Der Spiegel. The German investigative weekly said that the surveillance was carried out by the German Federal Intelligence Service, known as BND. The Hamburg-based magazine claimed to have in its possession a list of approximately 4,000 “selector keywords”, unique distinguishing terms, addresses or numbers that identify individual targets for surveillance. The list allegedly includes names, telephone or fax numbers, and email addresses of people that the BND had identified as worthy of individual attention between 1998 and 2006.

According to Der Spiegel, the list of targets in the United States includes officials in the White House, the Department of the Treasury and the Department of State. Their work and private phone numbers, and often emails, are listed in the BND document. The latter also focuses on the American military sector, paying particular attention to the US Air Force and the Marine Coprs. Other targets include the National Aeronautics and Space Administration and the Defense Intelligence Agency, the US Pentagon’s intelligence organization. In addition to US government targets, the BND exercised surveillance on American companies with ties to the state, such as Lockheed Martin, as well as state-owned universities. The leaked list also includes targets in international organizations that have an institutional presence in the US, such as the International Monetary Fund and the Arab League, which has an office in Washington. Hundreds of foreign embassies and consulates in the US were also targeted, said Der Spiegel.

German-American relations suffered a major setback in 2013, when it was revealed that Washington had spied on the personal cell phone of German Chancellor Angela Merkel. In response to the revelations, Germany expelled the Central Intelligence Agency’s station chief in Berlin —the most senior American intelligence officer in the country. It remains to be seen whether Thursday’s revelations will affect the current relations between the two transatlantic allies. Neither the BND nor the US embassy in Berlin responded to questions about Der Spiegel‘s report.

Author: Joseph Fitsanakis | Date: 23 June 2017 | Permalink

Israeli spy agency to launch anonymous technology investment fund

MossadThe Mossad, Israel’s primary intelligence agency, is preparing to launch a technology investment fund that will support Israeli-based hi-tech startups, with an eye to utilizing cutting-edge technologies in its spy operations. Israeli spy services are known internationally for their advanced use of technology in intelligence collection and special operations. But the planned investment fund is expected to systematize the Mossad’s use of cutting-edge technological solutions to intelligence challenges. It is interpreted by some commentators as “mark[ing] a new and surprising turn” in the spy agency’s approach to technology.

On Wednesday, Israeli newspaper Ha’aretz said it spoke to several unnamed Israeli bankers, who confirmed that the Mossad was “putting the finishing touches” on the anonymous technology investment fund. The bankers also told the newspaper that the fund would be officially launched “at the end of this month”. Once launched, the fund will invest in Israeli-owned technology startups, using money from the Mossad’s budget, without any outside capital. But instead of getting its share of the financial profit, the Mossad will ask instead to own the rights to the startup companies’ end-products and to be able to use them in intelligence-related work, said Ha’aretz.

According to the Israeli newspaper, the move by the Mossad is partly modeled after In-Q-Tel, a not-for-profit venture capital firm that operates as the technology investment firm of the United States Central Intelligence Agency. Based in Arlington, Virginia, In-Q-Tel invests in hi-tech technology startups focusing on new technologies that may be of use to the US Intelligence Community. Ha’aretz said it contacted the office of the Israeli prime minister for information about the Mossad’s alleged investment fund, and was told that the prime minster was looking into the matter.

Author: Joseph Fitsanakis | Date: 15 June 2017 | Permalink

Former head of Qatar spy agency sides with Saudis in diplomatic quarrel

Qatar’s Emir Sheikh Tamim Bin Hamad Al-Thani with US President Donald Trump A former director of Qatar’s intelligence agency broke ranks with the government of Qatar and accused Doha of supporting terrorism. He also warned that the United States, which has a base in Qatar, would not allow the presence of foreign troops there.

Tensions between Qatar and other predominantly Muslim countries rose dangerously in recent weeks. The crisis erupted soon after Qatar’s state-controlled news agency published an interview with the country’s ruler, Emir Sheikh Tamim Bin Hamad Al-Thani, in which he appeared to praise Iran and Israel, Saudi Arabia’s primary regional adversaries. Despite protestations by the Saudi government, the Qatari emir then contacted Iran’s President Hassan Rouhani, to congratulate him on his reelection, a move that was interpreted as adversarial by Riyadh. Saudi Arabia also feels threatened by Al Jazeera, a Qatari-based television network with worldwide reach, which is often critical of the Gulf’s oil monarchies other than Qatar.

Last week, Saudi Arabia and 16 other predominantly Muslim countries, including Egypt, Bahrain and the United Arab Emirates, announced a series of diplomatic, commercial and military sanctions on Qatar. The sanctions are ostensibly designed to curtail the country’s alleged support for international terrorism. Riyadh and its allies accuse Doha of secretly supporting militant groups like the Muslim Brotherhood, Islamic Hamas and the Taliban, among others. Currently all sea, air and land connections between these 16 countries and Qatar have been suspended, while no diplomatic relations exist between them. The tense situation has prompted some analysts to describe the diplomatic crisis as the worst in the Gulf region since the 1991 Gulf War.

In response to the diplomatic boycott, the government of Qatar said last week that it would invite military personnel from three of its allies, Iran, Pakistan and Turkey, to protect its territory. But the former director of Qatar’s intelligence service said in an interview on Monday that Qatar’s threat would not materialize. Read more of this post

Emiratis, Saudis, secretly assisting Libyan rebels with air power, says UN

Khalifa HaftarSecret military assistance from the United Arab Emirates and Saudi Arabia, which violates United Nations sanctions, is helping Libya’s eastern-based rebels prevail in the civil war there, according to a new report. Libya has remained in a state of anarchy since 2011, when a popular uprising backed by the West and its allies led to the demise of the country’s dictator, Muammar Gaddafi. Currently the strongest faction in the post-2011 Libyan Civil War is the eastern-based Tobruk-led Government, which is affiliated with the Libyan National Army (LNA). The commander of the LNA is Field Marshal Khalifa Haftar, an old adversary of Colonel Gaddafi, who lived in the US under Washington’s protection for several decades before returning to Libya in 2011.

The Tobruk-led Government is ostensibly supported by the United States, but has also received Russian assistance. The status of the group is further-complicated by the fact that, in recent years, its military wing, led by Haftar, operates semi-autonomously. Some believe that Haftar has now stopped taking orders from Tobruk and has aspirations to lead his own armed faction in Libya.

In February of 2011, shortly after the popular uprising erupted in Libya, the UN Security Council adopted Resolution 1970, which —among other things— forbids the export of war materiel to Libya. The resolution was further-strengthened in 2014 and today remains in place. But the UN embargo did not appear to stop the military domination of Haftar’s LNA. In the past few months, the armed group has managed to extend its control over dozens of urban centers, oil installations and military bases and outposts throughout eastern and central Libya. Today, the LNA is seen as the dominant military authority in the war-torn country.

Now a new report published by the UN suggests that the main reason for the LNA’s military prowess lies in the secret support it receives from the United Arab Emirates and Saudi Arabia. The report was published on Friday by the “Security Council Committee established pursuant to resolution 1970”, a panel of experts appointed by the UN to oversee the implementation of the arms embargo. In its annual report, the panel asserts that Haftar’s forces received significant military assistance from the UAE in both ground and aerial support. Specifically, the LNA received nearly 650 armored and non-armored vehicles in April of 2016 alone, as well as helicopters and unmanned drones. The latter are now stationed the Al-Khadim air base, which was built by the LNA specifically in order to house the UAE-supplied aircraft. It is believed that the UAE operates the Al-Khadim air base, which is located approximately 60 miles east of Benghazi, Libya’s second most populous urban center.

The UN report goes on to state that much of the war materiel reaches Libya through ships that sail from Saudi Arabia, and that some Belarus-based companies are also involved in the illicit transfer of helicopters, non-armored vehicles and other items to Libya. It concludes that the materiel assistance provided by the UAE has “significantly increased the air support available to the LNA”, which in turn explains the group’s impressive military performance in the past year. The report’s authors noted that they contacted the government of the UAE in regards to the report’s findings, but received no response.

Author: Joseph Fitsanakis | Date: 12 June 2017 | Permalink