Australia continues to detain whistleblower who revealed espionage behind oil deal

Bernard CollaeryAustralia continues to deny freedom of movement to a former intelligence officer who revealed that Canberra bugged government offices in the small island nation of Timor-Leste, in an effort to secure a lucrative oil deal. The former intelligence officer, known only as “Witness K.”, is believed to be a former director of technical operations in the Australian Secret Intelligence Service (ASIS), Australia’s foreign-intelligence agency. In 2013, he publicly objected to an intelligence-collection operation that targeted the impoverished Pacific island nation of Timor-Leste, known also as East Timor.

According to Witness K., a group of ASIS officers disguised themselves as members of a renovation crew and planted numerous electronic surveillance devices in an East Timorese government complex. The inside information collected from those devices allegedly allowed the Australian government to gain the upper hand in a series of complex negotiations that led to the 2004 Certain Maritime Arrangements in the Timor Sea (CMATS) treaty. The treaty awards Australia a share from profits from oil exploration in the Greater Sunrise oil and gas field, which is claimed by both Australia and East Timor. But in 2013, the East Timorese government took Australia to the Permanent Court of Arbitration in The Hague, claiming that the CMATS treaty should be scrapped. The East Timorese claimed that during the sensitive negotiations that preceded the CMATS treaty, the Australian government was in possession of intelligence acquired through ASIS bugging.

The claim of the East Timorese government was supported by Witness K., who argued that ASIS’ espionage operation was both “immoral and wrong” because it was designed to benefit the interests of large energy conglomerates and had nothing to do with Australian national security. But as soon as the East Timorese told the Permanent Court of Arbitration that they would be questioning a witness from ASIS, officers from the Australian Security Intelligence Organisation (ASIO), the country’s domestic intelligence agency, raided the Canberra law offices of Bernard Collaery, East Timor’s lawyer in the case. The raiders took away documents that disclosed the identity of Witness K., and then proceeded to detain him for questioning. They also confiscated his passport, which prevented him from traveling to the Netherlands to testify in the case. Read more of this post

Espionage threat is greater now than in Cold War, Australian agency warns

ASIO AustraliaForeign intelligence collection and espionage threats against Australia are greater today than at any time during the Cold War, according to a senior Australian intelligence official. The claim was made on Wednesday by Peter Vickery, deputy director general of the Australian Security Intelligence Organisation (ASIO), the country’s primary counterintelligence agency. He was speaking before a parliamentary committee that is considering aspects of a proposed bill, which aims to combat foreign influence on Australian political and economic life. If enacted, the bill would require anyone who is professionally advocating or campaigning in favor of “foreign entities” to register with the government. Several opposition parties and groups, including the Catholic Church, have expressed concern, saying that the bill is too broad and could curtail the political and religious freedoms of Australians.

But ASIO has come out strongly in favor of the proposed bill. Speaking in parliament on Wednesday, Vickery warned that Australia is today facing more threats from espionage than during the Cold War. “Whilst [the Cold War] was obviously a very busy time” for ASIO, said Vickery, his agency’s assessment is that Cold War espionage was “not on the scale we are experiencing today” in Australia. During the Cold War, ASIO was cognizant and aware of the major adversaries, he added. But today, the espionage landscape features “a raft of unknown players”, many of whom operate on behalf of non-state actors, said Vickery. The phenomenon of globalization further-complicates counterintelligence efforts, he added, because foreign espionage can be conducted from afar with little effort. Vickery noted that espionage and foreign influence in Australia “is not something that we think might happen, or possibly could happen. It is happening now against Australian interests in Australia and Australian interests abroad”. He also warned that the public knows little about the extent of espionage and foreign-influence operations taking place “at a local, state and federal level” throughout the country.

Earlier this week, the Catholic Church of Australia came out in opposition to the proposed legislation, which it sees as too broad. The religious denomination, which represents approximately 20 percent of the country’s population, said that the bill was too broad and could force Australian Catholics to register as agents of a foreign power. Technically, the Catholic Church is headquartered at the Vatican, which would make the organization a foreign entity under the proposed bill, the Church said in a statement.

Author: Joseph Fitsanakis | Date: 01 February 2018 | Permalink

Australian spy agency says it is facing ‘unprecedented’ espionage threat

ASIO AustraliaThe primary intelligence agency of Australia says its resources are overextended as the country faces “espionage and foreign interference [of an] unprecedented” scale. In its annual report to the Australian houses of parliament, which was produced on Tuesday, the Australian Security Intelligence Organisation (ASIO) says it lacks resources to counter “harmful espionage” and “malicious activity” against the country. The unclassified report is published every year as a summary of a much longer classified report, which is shared with senior government officials and senior civil servants. It is endorsed by ASIO Director Duncan Lewis, who serves as Australia’s Director-General of Security.

In its report for 2016-2017, the ASIO said its officers identified “a number of states and other actors” that were “conducting espionage and foreign interference against Australia”. Many of these were “foreign intelligence services”, which used a variety of intelligence-collection methods of seeking “access to privileged and/or classified information on Australia’s alliances and partnerships”. Foreign intelligence services also spied for information on Canberra’s position on various economic, diplomatic and military issues, and sought information on the country’s energy policy and the volume of its energy and mineral resources. Additionally, espionage was detected against Australian scientific and technical research centers, says the report.

The report goes on to describe the ASIO’s counterterrorism investigations and operations as being of “high volume and tempo”, and states that its services were sought “in higher levels” than ever by “many across both government and industry”. Combined with the “unprecedented scale” of espionage and foreign interference against Australia that it is called to combat, these demands meant that ASIO’s resources would “remain overextended” in the new year, according to the report.

In the past year, the agency says it was able to identify “foreign powers” that secretly sought to influence Australian public opinion, and shape the views of Australian media professionals, industry and government officials, and others, on matters that advanced the interests of other countries, says the report. There was also espionage by foreign powers against members of ethnic communities in Australia, as well as harassment and other covert influence operations that sought to minimize criticism of foreign governments by members of those ethic communities.

The unclassified ASIO report does not identify the “foreign powers” that allegedly sponsored espionage operations against Australia, nor does it specify whether any foreign agents were apprehended, jailed or expelled from the country for carrying out espionage.

Author: Ian Allen | Date: 18 October 2017 | Permalink

Australia rejected CIA request to open embassy in North Korea

PyongyangAustralia rejected a secret request by the United States Central Intelligence Agency to open an embassy in North Korea, which the Americans hoped to use as a base from where to collect intelligence on the communist state. According to The Australian newspaper, Washington approached the Australian government because it is one of the few pro-Western governments that continue to maintain cordial diplomatic relations with Pyongyang. Up until 1975, Australia was a rare example of a country that hosted embassies of both South Korea and North Korea on its soil. But when Canberra took South Korea’s side in a United Nations vote, the North Koreans objected by shutting down their embassy in Australia. A quarter of a century later, in 2000, Pyongyang reopened its embassy in the Australian capital, only to close it down again in 2008, due to financial constraints.

Throughout that time, Australia has maintained relatively smooth diplomatic relations with North Korea, but has refrained from opening a residential mission in the communist country. Instead, employees of Australia’s embassy in South Korea occasionally travel to the North to perform diplomatic tasks. But in 2014, the US Department of State reached out to Canberra to request that the Australian government consider the possibility of establishing a permanent residential mission in Pyongyang. According to The Australian, the request came from the CIA, which hoped to use the Australian embassy as a base from where to collect intelligence on the isolated country. The US, which lacks an embassy in North Korea, has always found it difficult to collect intelligence there.

The American request was promptly communicated to the then-Prime Minister Tonny Abbott and his Minister of Foreign Affairs, Julie Bishop. Both appeared willing to consider Washington’s proposal. But the civil servants of the Department of Foreign Affairs and Trade, who were tasked with putting together a cost-benefit analysis of the request, came back with a negative response. They allegedly contacted their colleagues working in other countries who maintain permanent residential diplomatic missions in Pyongyang. They told them that their consular employees are kept in complete isolation from North Korean society and government. Additionally, they are subjected to constant surveillance by the North Koreans, who are extremely suspicious of all foreign diplomats. Moreover, Canberra was worried that opening an embassy in Pyongyang would inevitably be seen by the North Koreans as an invitation to reopen their embassy in Australia. It would require significant effort and resources to monitor the activities of North Korean diplomats, who are notorious for abusing their diplomatic status by engaging in illicit activities of all kinds.

Eventually, therefore, the US request was rejected by Australia’s Department of Foreign Affairs and Trade. The latter concluded that Canberra should not proceed with opening a new embassy in Pyongyang, despite the allegedly “strong suggestion” of the CIA. The matter, said The Australian, never reach the cabinet and Washington never brought it up again.

Author: Joseph Fitsanakis | Date: 20 September 2017 | Permalink

Australian parliament reviews use of Chinese-made cell phones

ZTE CorporationThe Parliament of Australia is reportedly reviewing the use of cell phones built by a Chinese manufacturer, after an Australian news agency expressed concerns about the manufacturer’s links with the Chinese military. The cell phone in question is the popular Telstra Tough T55 handset. It is made available to Australian parliamentarians though the Information, Communications and Technology (ICT) unit of the Department of Parliamentary Services (DST). Any parliamentarian or worker in Australia’s Parliament House can order the device through the Parliament’s ICT website. According to data provided by the DST, 90 Telstra Tough T55 cell phones have been ordered through the ICT in the current financial year.

The handset is manufactured by ZTE Corporation, a leading Chinese telecommunications equipment and systems company that is headquartered in the city of Shenzhen in China’s Guangdong province. On Monday, the News Corp Australia Network, a major Australian news agency, said it had contacted the parliament with information that ZTE Corporation’s links to the Chinese military may be of concern. News Corp said it informed the DST that members of the United States Congress and the House of Representatives’ intelligence committee, have expressed serious concerns about the Chinese telecommunications manufacturer in recent years.

As intelNews reported in 2010, three American senators told the US Federal Communications Commission that the ZTE was “effectively controlled by China’s civilian and military intelligence establishment”. The senators were trying to prevent a proposed collaboration between American wireless telecommunications manufacturers and two Chinese companies, including ZTE Corporation. In 2012, the intelligence committee of the US House of Representatives investigated similar concerns. It concluded that telephone handsets manufactured by ZTE should not be used by US government employees due to the company’s strong links with the Chinese state. And in 2016, US-based security firm Kryptowire warned that some ZTE cell phone handsets contained a suspicious backdoor feature that could potentially allow their users’ private data to be shared with remote servers at regular intervals.

A DST spokesman told the News Corp Australia Network that the ZTE-manufactured cell phones had been selected for use by Australian parliamentarians based on “technical and support requirements, [DST] customers’ feedback and cost”. The spokesman added that the DST “is currently reviewing the ongoing suitability” of the T55 handsets, following reports about ZTE’s links with China’s security establishment.

Author: Ian Allen | Date: 05 September 2017 | Permalink

Australia concerned about Chinese firm’s involvement in undersea cable project

Sogavare and TurnbullAustralia has expressed concern about a plan by a Chinese telecommunications company to provide high-speed Internet to the Solomon Islands, a small Pacific island nation with which Australia shares Internet resources. The company, Huawei Technologies, a private Chinese venture, is one of the world’s leading telecommunications hardware manufacturers. In recent years, however, it has come under scrutiny by Western intelligence agencies, who view it as being too close to the Communist Party of China.

One of Huawei’s most recent large-scale projects involves the Solomon Islands, a former British overseas territory that became independent in 1978 and is today a sovereign nation. The Pacific country consist of a complex of nearly 1,000 islands of different sizes, scattered over a distance of 11,000 square miles. It lies northeast of Australia and directly east of Papua New Guinea. In 2014, the government of the Solomon Islands began an ambitious project to connect its Internet servers to those of Australia via a 2,700-mile undersea fiber optic cable. The ultimate goal of the project is to provide Solomon Islands inhabitants with reliable high-speed Internet. The project was approved by Canberra (Australian government) and Sydney (Australian private sector) and given the green light by the Asian Development Bank, which promised to fund it. But in 2016 the Solomon Islands government suddenly named Huawei Marine as the project’s main contractor. Huawei Marine, a subsidiary of Huawei Technologies, is a joint venture between the Chinese firm and Global Marine Systems, a British-headquartered company that installs undersea telecommunications cables.

The news was greeted with concern in Canberra. The Australian intelligence community has previously warned that Huawei operates as an arm of the Chinese spy services. Intelligence agencies in the United Kingdom and the United States have issued similar warnings. In 2011, a report by a research unit of the US Office of the Director of National Intelligence concluded that Huawei Technologies relied on a series of formal and informal contacts with the Chinese People’s Liberation Army and the Ministry of State Security. But a subsequent 18-month review commissioned by the White House found no evidence that Huawei spied for the Chinese government.

Canberra is concerned that, by constructing the Solomon Islands undersea cable, Huawei would be “plugging into Australia’s telecommunications infrastructure backbone”, something that, according to some intelligence officials, “presents a fundamental security issue”. To further-complicate things, opposition officials in the Solomon Islands allege that the country’s government contracted the services of Huawei after the Chinese company promised to make a multi-million dollar donation to the ruling political party. Last June, the director of the Australian Secret Intelligence Service (ASIS), Nick Warner, visited the Solomon Islands and tried to convince the country’s Prime Minister, Manasseh Sogavare, to drop Huawei from the project. The topic was also discussed in a meeting between Mr. Sogavare and his Australian counterpart, Malcolm Turnbull, in Canberra last week. Following the meeting, the Solomon Islands leader said that his government would “continue to have discussions with the Australian government to see how we can solve that […] security issue”.

Author: Ian Allen | Date: 21 August 2017 | Permalink

Indonesia halts joint military training with Australia ‘over espionage fears’

Indonesia AustraliaThe Indonesian military has halted all forms of cooperation with the armed forces of Australia, with some media reports suggesting that the decision was prompted by fears of espionage. Indonesia and Australia have held joined military training sessions for many decades. In recent weeks, members of the Kopassus, the elite special forces of the Indonesian military, were training on a base in Perth, Australia, with their counterparts in the Australian Special Air Service. On Wednesday, however, the Indonesian government said that it was suspending all military cooperation with Canberra, effective immediately.

The unexpected announcement was made by a spokesman of the Indonesian National Armed Forces, who said that “all forms of cooperation with the Australian military, including joint training” would be “temporarily withheld”. When asked about the reasons behind the sudden move, the spokesman said it was “due to multiple reasons”, but refused to give specifics. Later on Wednesday, Indonesian officials said some print material had been found at the training center in Perth, which offended the Indonesian people. But Australian media suggested that the Indonesian government had decided to terminate the joint military training program because it feared that its special forces troops would be recruited as spies by the Australians. Some reports brought up some relevant comments made in November of last year by a senior Indonesian military official, General Gatot Nurmantyo. The general said he had ended military cooperation between troops under his command and their Australian colleagues due to fears that his troops may be compromised by the Australians during training.

But Australia’s Minister of Defense, Marise Payne, rejected that Australian espionage activities were behind Jakarta’s surprise decision. Speaking on ABC Radio on Wednesday, Payne said it was “not the case” that Australian intelligence officers had tried to recruit Indonesian soldiers. That “is something which we would not countenance”, she said. In 2013, Indonesia withdrew its ambassador from Canberra and terminated all military and intelligence cooperation with Australia, after it emerged that Australian spies had targeted the communications of the Indonesian President and other senior officials. But tensions subsided in August of 2014, when the two countries signed a joint agreement aimed at curbing their intelligence activities against each other. The last time Australia and Indonesia halted military cooperation was in 1999, when it was revealed that Kopassus troops had taken part in human rights abuses in East Timor. But the joint training was resumed in 2002, after the Bali bombings, which killed 202 people, many of them Australian tourists.

Author: Ian Allen | Date: 06 January | Permalink

Chinese diplomat who defected to Australia breaks silence to warn of spies

Chen YonglinA Chinese diplomat, who made international news headlines in 2005 when he defected to Australia, has ended a decade of silence to warn about an alleged increase in Chinese espionage operations against his adopted country. Chen Yonglin was a seasoned member of the Chinese diplomatic corps in 2001, when he was posted as a political affairs consul at the Chinese consulate in Sydney, Australia. His job was to keep tabs on the Chinese expatriate community in Australia, with an emphasis on individuals and organizations deemed subversive by Beijing. He later revealed that his main preoccupation was targeting members of the Falun Gong spiritual movement, which is illegal in China. He also targeted supporters of Taiwanese independence, as well as Tibetan and East Turkestan nationalists who were active on Australian soil.

But in 2005, Chen contacted the Australian government and said that he wanted to defect, along with his spouse and six-year-old daughter. He was eventually granted political asylum by Canberra, making his the highest-profile defection of a Chinese government employee to Australia in over half a century. During a subsequent testimony given to the Parliament of Australia, Chen said that he was in contact with Australian intelligence and was giving them information about alleged Chinese espionage activities. He said at the time that China operated a network of over 1,000 “secret agents and informants” in Australia. Chen distinguished agents and informants from Chinese intelligence officers, most of whom were stationed in Chinese diplomatic facilities.

Chen, who now works as a businessman, disappeared from the public limelight after his defection. But last weekend, he reappeared after a decade of obscurity and gave an interview to ABC, Australia’s national broadcaster. The ABC journalist reminded Chen that in 2005 he had estimated the number of Chinese agents and informants operating in Australia at 1,000, and asked him how many he thought were active today. Chen responded that an increase in the number is certain, given that “China is now the wealthiest government in the world”. That meant, said Chen, that Beijing has the funds that are necessary to maintain “a huge number of spies” in Australia. However, the former diplomat said that most Chinese agents are “casual informants”, not trained spies, and that they are dormant for long periods of time in between operations.

Author: Joseph Fitsanakis | Date: 24 November 2016 | Permalink

Is Chinese salvage ship searching for flight MH370 spying on Australia?

DONG HAI JIU 101The Chinese embassy in Canberra has strongly denied accusations that a Chinese government ship involved in the international effort to find the missing Malaysia Airlines Flight MH370 is spying on the Royal Australian Navy. The ship, the Dong Hai Jiu 101, is a salvage and rescue vessel built in Shanghai in 2012 and currently sailing under the Chinese flag. In April, the Chinese government contracted the Dong Hai Jiu 101 to join the international search effort for the wreckage of Flight MH370. The Boeing 777 aircraft disappeared over the South China Sea on March 8, 2014, while flying from Kuala Lumpur International Airport in Malaysia, to the Beijing Capital International Airport in China.

Only a few pieces of debris, purportedly belonging to the plane, have been found, despite the most extensive and costly search in aviation history. The coordinated international search began off the coast of Thailand last year and is currently focused on the seabed off the city of Perth in Western Australia. The Dong Hai Jiu 101 has been sailing in the area since April of this year, along with three other search and rescue vessels. Last week, however, The Australian newspaper published interviews with several security experts who expressed the opinion that the Dong Hai Jiu 101 may be collecting intelligence on Australia for the Chinese government. The alleged intelligence collection is probably of maritime nature and probably involves hydrophonic instrumentation to track submarine movements, said the experts.

But the Chinese government responded quickly, issuing a strong denial through its embassy in Canberra. An embassy spokesman reminded The Australian that 154 of 239 passengers and crew on Flight MH370 were Chinese, and therefore Beijing has a “strong obligation” to participate in the international search effort. Additionally, said the statement, the Chinese vessel is sailing off the Australian coast with the consent of the Australian government, and in coordination with the Australian Transport Safety Bureau, using underwater search equipment supplied by an American-based company. The Australian government has not made a statement on the matter.

Author: Ian Allen | Date: 27 September 2016 | Permalink

Australia, Indonesia exchange intelligence personnel to combat ISIS

2016 Jakarta attacksAn ambitious new personnel exchange program between intelligence agencies in Australia and Indonesia aims to combat the unprecedented rise of militant Islamism in Southeast Asia, which is fueled by the Islamic State. The program, which is already underway, aims to strengthen intelligence cooperation between two traditionally adversarial regional powers. According to The Australian newspaper, the scheme owes its existence to the growing recognition that the security environment in the region is rapidly deteriorating due to the popularity of the Islamic State. The militant group appears to have replaced al-Qaeda in the minds of many radical Islamists in Indonesia, Malaysia, the Philippines and elsewhere, and is fueling the resurgence of smaller Islamist sects that have laid largely dormant for years.

Relations between militant Islamist sects in Indonesia —the world’s most populous Muslim nation— have traditionally been factional in nature. But some experts fear that the unprecedented growth of the Islamic State is galvanizing and uniting Islamist factions throughout Southeast Asia. Chief among them is the Jemaah Islamiyah, an al-Qaeda-linked terrorist group operating across the region, which was behind the 2002 Bali bombings that killed over 200 people, 88 of them Australians. In January of this year, Jemaah Islamiyah praised a series of attacks in the Indonesian capital Jakarta, which were perpetrated by militants connected to the Islamic State. The attacks killed four people, far fewer than their perpetrators had hoped to harm. But they lasted for several hours and shocked many due to the ease with which the heavily armed terrorists were able to evade security measures. Similar attacks were recently prevented in their planning stages by security agencies in Malaysia and the Philippines.

These developments prompted the rapprochement that is currently taking place between two traditionally rival intelligence agencies, the Australian Security Intelligence Organisation (ASIO) and Indonesia’s State Intelligence Agency, commonly referred to as BIN. The two agencies have reportedly begun posting officers to each other’s headquarters on multi-month assignments. The purpose of these exchanges is to gain a detailed understanding of each other’s counterterrorist planning and operations, and devise areas of actionable cooperation. The plan can be characterized as ambitious, given that relations between ASIO and BIN were severely disrupted in late 2013 and are still damaged, according to some observers. The break in relations was prompted by revelations, made by the American defector Edward Snowden, that Australian intelligence spied on senior Indonesian politicians and their family members, including the wife of the country’s president. Indonesia responded by withdrawing its ambassador from Canberra and terminating all military and intelligence cooperation with Australia. Nine months later, the two countries signed a joint agreement promising to curb their intelligence activities against each other. Some observers suggest that it will take years for Indonesian and Australian intelligence to fully reestablish intelligence cooperation. However, the rapidly deteriorating security situation in Southeast Asia could be significantly accelerating this process.

Author: Joseph Fitsanakis | Date: 13 July 2016 | Permalink

Australian spy agency reviews gun policy after ‘drunken episode’ in Afghanistan

Australian Special Air Service RegimentThe use of firearms by Australian intelligence and security personnel stationed abroad is being reviewed following an incident in which an intoxicated special forces soldier pulled a gun on a spy in Afghanistan. According to reports in the Australian media, the review was conducted by the Inspector General of Intelligence and Security, a government-appointed office that monitors the conduct of Australian intelligence and security agencies.

It is believed that the Inspector General’s office began the investigation in 2014, shortly after it was made aware of the alleged incident in Afghanistan. According to unconfirmed reports, the incident involved two members of a “defence support team” who were stationed in Kabul. Defence support teams are highly secretive outfits that operate abroad and bring together members of Australia’s Special Air Service Regiment (SASR) with officers of the Australian Secret Intelligence Service (ASIS) —the country’s primary external intelligence agency. Some reports suggest that a group of SAS soldiers had been drinking heavily at the embassy of Australia in the Afghan capital, and that one of them, who was heavily intoxicated, pointed a loaded handgun at a female ASIS officer, while verbally threatening her.

Cooler heads prevailed and the incident ended quickly. But it allegedly shook everybody who witnessed it, and it was quickly reported to the Inspector General. The watchdog promptly carried out an audit “to make sure guns were only being issued to foreign posts that really needed them”. Its written recommendations were circulated within ASIS earlier this week. However, the agency says it will not reveal the precise content of the Inspector General’s recommendations, because it could “prejudice [Australia’s] security relations with other counties” and place spies at risk.

Author: Ian Allen | Date: 21 October 2015 | Permalink

Australian spies use paid informants abroad to stop human smuggling

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

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

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

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


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

KGB officer who handled Aussie double spy is now Putin crony

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

News you may have missed #883

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

Australia, Indonesia to end rift by signing joint spy agreement

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

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