Year in review: The 10 biggest spy-related stories of 2016, part II
January 2, 2017 Leave a comment
Since 2008, when we launched intelNews, it has been our end-of-the-year tradition to take a look back and highlight what we think were the most important intelligence-related stories of the past 12 months. In anticipation of what 2017 may bring in this highly volatile field, we present you with our selection of the top spy stories of 2016. They are listed below in reverse order of significance. This is part two in a two-part series; you can access part one here.
5. Turkey’s intelligence agency wins the 2016 ‘clueless’ award. It seems everyone predicted the July 15 coup in Turkey, except its spy agency. Unlike countless political analysts in Turkey and abroad, who have been warning about a possible coup as early as October 2015, Turkey’s National Intelligence Organization (MİT) was caught in the dark. So unprepared was the agency, that it was unable to defend its headquarters in Ankara from an attack on the morning of July 16 by military helicopters. Meanwhile, dozens of Turkish nationals with diplomatic passports have been applying for political asylum in Germany and elsewhere since the coup. How many of those are MİT personnel, one wonders?
4. Panama papers leak shows immense extent of global financial crime. This year saw the unauthorized release of the Panama Papers, 11.5 million leaked documents that represent history’s largest leak. The documents were leaked form the vaults of the secretive Panamanian law firm Mossack Fonseca, and reveal secret information relating to over 200,000 offshore entities. This website opined at the time that the Panama Papers reveal the enormous extent of tax evasion and money laundering on a worldwide scale, which now directly threatens the very survival of the postwar welfare state. National intelligence agencies must begin to view offshore tax evasion as an existential threat to the security of organized government and need to augment their economic role as part of their overall mission to protect and secure law-abiding citizens.
3. Nuclear power plant computers found to be infected with viruses. In April, the computers of Gundremmingen, a nuclear power plant in southern Germany, were found to be infected with computer viruses that are designed to steal files and provide attackers with remote control of the system. The power plant is located in Germany’s southern district of Günzburg, about 75 miles northwest of the city of Munich. It is owned and operated by RWE AG, Germany’s second-largest electricity producer. RWE AG insisted that the malware did not pose a threat to the nuclear power plant’s computer systems, because the facility is not connected to the Internet. But there was no explanation of how the viruses found their way into the nuclear power plant’s systems in the first place.
2. German intelligence accuses Russia of pretending to be ISIS online. In June, a German intelligence report alleged that the so-called ‘Cyber Caliphate’, the online hacker wing of the Islamic State, is in fact a Russian front, ingeniously conceived to permit Moscow to hack Western targets without retaliation. The Cyber Caliphate first appeared in early 2014, purporting to operate as the online wing of ISIS. Now, however, a German intelligence report claims that the Cyber Caliphate is in fact a project of APT28 (also known as ‘Pawn Storm’), a notorious Russian hacking collective with close ties to Russian intelligence. The findings of the German intelligence report echo previous assessments by French and American authorities.
1. Intelligence features heavily in domestic US politics. Many, including this website, saw last week’s expulsion of 35 Russian diplomats by US President Barack Obama as a move directed “more towoard domestic American politics than foreign policy”. The expulsion aimed to expose Moscow’s alleged campaign of interference in the 2016 US Presidential elections. But another of its goals was to force president-elect Donald Trump, seen widely as a Russo-file, to take sides. Russian President Vladimir Putin responded by saying Moscow “reserves the right” to retaliate, but would not do so at this point. The Russian response was unexpected and highly uncharacteristic, an important reminder of the uncharted waters that US politics –and US-Russian relations– have entered in 2016. Still, it is remarkable to see the president-elect of the US effectively side with the Kremlin and not with his own country’s Intelligence Community. If nothing more, 2017 promises to be exceedingly interesting from an intelligence point of view.
This is part two in a two-part series; you can access part I here.
► Author: Joseph Fitsanakis and Ian Allen | Date: 30 December 2016 | Permalink
There had been rumors for some time about a possible expulsion of Russian diplomats from the United States, in response to alleged Russian interference in the 2016 US Presidential election. The White House confirmed the rumors on Thursday morning, by 
Since 2008, when we launched intelNews, it has been our end-of-the-year tradition to take a look back and highlight what we think were the most important intelligence-related stories of the past 12 months. In anticipation of what 2017 may bring in this highly volatile field, we present you with our selection of the top spy stories of 2016. They are listed below in reverse order of significance. This is part one in a two-part series; part two is 
United States President Barack Obama has signed a new law that designates $160 million to set up a government center for “countering foreign propaganda and disinformation”. The law authorizes the US departments of State and Defense to work with other federal agencies in establishing the new body. Its precise tasks are not yet known, nor is the role in it —if any— of intelligence agencies, though the Director of National Intelligence is mentioned in the 
On Saturday, Nigerian President Muhammadu Buhari made a 
Students who have pledged allegiance to North Korea are being taught advanced courses in nuclear physics and control engineering in Japan, which violates United Nations sanctions, according to human rights campaigners. The students take classes at Korea University, a higher-education institution located in in Kodaira, a western suburb of the Japanese capital Tokyo. The University is funded directly by the government of North Korea through Chongryon, a pro-Pyongyang organization otherwise known as the General Association of Korean Residents in Japan. The group represents tens of thousands of ethnic Koreans living in Japan, who are ideologically affiliated with Pyongyang.
The central suspect in the Berlin Christmas market attack had been on the radar of German security agencies since January of this year, because he had links with radical Islamists and sought to buy guns for a terrorist attack. Anis Amiri, 23, left his native Tunisia in 2011, soon after the outbreak of the so-called Arab Spring there. He lived in Italy for three years before arriving in Germany in July 2015. In April of this year, he applied for an asylum in Germany. According to German authorities, Amiri was arrested multiple times in Tunisia for drug-related offenses. He is also believed to have used at least six different aliases since moving to Europe, and to have claimed to be a citizen of Lebanon and Egypt at different times.
Despite persistent silence from Tel Aviv, commentators there seem increasingly convinced that Israeli spies were behind last week’s killing of an aviation engineer who worked for the Palestinian militant group Hamas. The man, Mohamed Zaouari, 49, was a Tunisian national who had spent over a decade creating an innovative aerial drone program for the Palestinian group that controls the Gaza Strip. He was 
A senior aviation engineer who headed the unmanned aerial vehicle program of the Palestinian militant group Hamas, has been shot dead outside his home in Tunisia by a group of assailants using gun silencers. Mohamed Zaouari, 49, was a Tunisian national who had spent over a decade creating an innovative aerial drone program for Hamas, the Palestinian group that today controls the Gaza Strip. He had lived outside of Tunisia for much of his life, most recently in Syria, where he is believed to have worked as an engineer in a private firm, while also consulting with the Palestinian group. He had returned to Tunisia in 2011, following the upheaval in the country that sparked the so-called Arab Spring.
A reported discord between British and German intelligence services, which began in 2014, allegedly persists and now constitutes the “biggest rift between [the] secret services” of the two countries “since World War II”. According to British newspaper The Daily Mail, the Germans accuse Britain of working with the United States to spy on Berlin, while the British government says German intelligence agencies cannot be trusted to safeguard classified information. In an 
Western military and intelligence agencies are deploying extra analysts to comb through unprecedented amounts of digital data collected from Iraqi regions that have recently been recaptured from the Islamic State. The information is contained in thousands of laptops, hard drives, flash drives and cell phones left behind by retreating Islamic State forces in and around the northern Iraqi city of Mosul.
A new director, with considerable experience in counterterrorism, has been appointed to lead Pakistan’s Inter-Services Intelligence (ISI), believed by some to be one of the most powerful spy agencies in the world. Pakistan’s Ministry of Defense announced on Sunday that Lt. Gen. Naveed Mukhtar will be replacing Lt. Gen. Rizwan Akhtar, who has led the ISI since November of 2014. The 
No person familiar with the theory and practice of intelligence will be shocked by allegations that Russia interfered in the recent American presidential election. On the contrary, the claim will strike experienced observers as a textbook case of covert operation —an intelligence activity designed to influence foreign political, military or economic developments. Far from being physically violent, most covert operations involve actions like secretly funding political parties, planting misinformation or propaganda in foreign media outlets and —in more extreme cases— bribing or extorting key political actors. During the Cold War, hardly a national election took place without attracting the 
in last month’s US election. Indeed, the opposite would be strange.
candidates. This was about the reputation of the American electoral process. In fact, the primary goal of Russia’s involvement in the US election —which, again, must be presumed— was not to empower a particular candidate, but to weaken the reputation of American political institutions as a whole. Those who claim that the Kremlin tried to promote Trump because the Republican candidate appears to be more favorably disposed toward Russia are wrong. They misunderstand the complex nature of Russian-American relations and underestimate Russian strategy. Moscow understands that its bilateral relationship with Washington rests on a set of longstanding geopolitical variables and does not depend on ephemeral personal relations between individual leaders. Furthermore, the Kremlin views Trump as an inherently unpredictable actor that is not to be trusted. The Russian plan, therefore, was not to help elect Trump. Rather, it was to sow mistrust between American –and by extension Western– civil society and its political institutions. Given the challenges currently being faced by European and American democracy, that is not a far-fetched goal.
A German retiree living in Greece, who admitted in court that he was part of a network of German and other Western European residents of Greece recruited as spies by Turkish intelligence, has been jailed for 14 years. The 65-year-old man, who has not been named, was arrested two years ago in the southeastern Aegean island of Kos. He was born in Cold-War-era East Germany and worked as a locksmith before serving for 15 years in the East German National People’s Army. From 2009 to 2012, he lived in Turkey before moving permanently to Greece.
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Accused Chinese nuclear spy ‘to plead guilty’ in US court this week
January 4, 2017 by Ian Allen 4 Comments
The investigation began when the Tennessee Valley Authority (TVA) contacted the FBI with concerns about Ching Huey, a TVA senior manager. When the FBI questioned the TVA executive, he admitted that Allen Ho had paid him in exchange for information about nuclear power production. He also said that he had traveled to China for that purpose, and that the Chinese government had covered his travel expenses. A few months later, the FBI arrested Ho in Atlanta, Georgia, and charged him with espionage. The FBI also claims that Ho’s US business firm, Energy Technology International, gave secrets to China General Nuclear Power, a Chinese company that supplies nuclear energy technology to the Chinese government. According to Ho’s indictment, he used his technical expertise and business acumen to give Beijing US government information that could help China’s civilian and military nuclear program.
Government prosecutors argued successfully that Ho, who has close family in China, including a son from a former marriage, could flee there if freed. Prosecutors also claim that Ho has access to several million US dollars abroad. For the past months, Ho’s defense denied the espionage accusations against him. But on Tuesday, a newspaper in Knoxville, Tennessee, where Ho has been charged, said that the jailed engineer is preparing to plead guilty in court on Friday. Observers believe that this move by Ho’s legal team means that he has decided to cooperate with the FBI. He could therefore provide US authorities with information about Chinese nuclear espionage in the US, and secrets on “the inner workings of China’s nuclear program”, said the newspaper.
► Author: Ian Allen | Date: 4 January 2017 | Permalink
Filed under Expert news and commentary on intelligence, espionage, spies and spying Tagged with Allen Ho, China, China General Nuclear Power, Chinese nuclear program, Ching Huey, Energy Technology International, espionage, News, nuclear espionage, Szuhsiung Ho, Tennessee Valley Authority