Unprecedented German tax scandal has intelligence connection

Heinrich Kieber

Heinrich Kieber

By JOSEPH FITSANAKIS | intelNews.org |
Klaus Zumwinkel was until recently the CEO of Deutsche Post, Germany’s now-privatized postal company, which is said to be the world’s largest logistics corporation. Early yesterday morning, Zumwinkel was given a two-year suspended sentence and fined €1 million for systematically evading taxes “with criminal energy”, as the presiding judge put it. The disgraced former CEO is thus far the highest-profile offender in what has become the largest financial crime scandal in German history. The affair involves nearly 1,000 names of wealthy investors, celebrities, and business executives, linked to illegal fund deposits at LLB and LGT Group, two “no-questions-asked” banks owned by the Royal family of the tiny alpine tax haven of Liechtenstein. What is perhaps less known is that the investigation, which now incorporates thousands of individuals in at least a dozen countries, began through a tip received by Germany’s foreign intelligence service. Read more of this post

Estonian sleeper agent may have been double spy, say Germans

Herman Simm

Herman Simm

Last month, Estonian counterintelligence agents arrested Herman Simm, a high-level official at the Estonian defense ministry, on charges that he spied on behalf of Russian intelligence for nearly 30 years. At the time, Western counterintelligence officials said Simm, who was in charge of handling all of Estonia’s “classified and top secret material on NATO”, was at the center of “the most serious case of espionage against NATO since the end of the Cold War”. But the complexity of this espionage affair has now increased, with German weekly magazine Der Spiegel reporting that Simm was also a paid informant of the Bundesnachrichtendienst (BND), Germany’s foreign intelligence service. Read more of this post

German intelligence spied on relief group in Afghanistan

It appears that the Bundesnachrichtendienst (BND), Germany’s foreign intelligence service, is finding it impossible to stay out of the news headlines. In November, three deep-cover agents working for the BND were arrested and summarily expelled from the newly independent Balkan nation of Kosovo. Now Der Spiegel magazine reports that the spy agency has admitted conducting covert surveillance on the communications of ANSO, a German relief project active in Afghanistan. Read more of this post

Joint German/French spy satellite now deployed

The German military has deployed its first radar-based spy satellite system, as of today. The satellite project, codenamed SARLUPE, is meant to complement France’s HELIOS II military satellite system. The French system is far stronger than the German system. However, as it is not radar-based, it cannot spy during nighttime or in overcast weather conditions. This problem is now solved by the German satellite, which “will be able to take radar pictures of any place at about 10 hours’ notice”, according to a DPA report. Read more of this post

Further details on German spy arrests in Kosovo

Further detailed information has seen the light of day in relation to the recent arrest of three German intelligence agents in Kosovo. The three spies, which were arrested while investigating the scene of an explosion at the EU offices in Pristina, were part of a constant presence in the Kosovar capital of the Bundesnachrichtendienst, or BND, Germany’s foreign intelligence service. Their cover was being employed by a BND front company called LCAS (Logistics-Coordination & Assessment Service), which was registered in Munich in April of 2007, and has “offices” in Pristina. The operation was so secret that “the official BND attaché stationed at the German Embassy in Pristina knew nothing of it. The German ambassador was likewise in the dark”, according to a new report by Der Spiegel. This would also explain (though not necessarily justify) why it was these agents, and not the BND resident at the German Embassy, who were sent to investigate the explosion at the EU building on November 14. The Kosovar government is now expected to use the information it gained from the arrest of the three agents, as well as from raiding the LCAS office in Pristina, to uncover the “extensive network of informants among high-ranking functionaries of the KLA and the Kosovar administration […] which is more extensive in Kosovo than in most countries around the world” and which the BND has maintained since the early 1990s in this former region of Serbia. Specifically, the Spiegel article further states that “the Kosovo government may now arrest large numbers of informants who have provided the BND with valuable information”. [JF]

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Analysis: German intelligence in Kosovo

The epicenter of the latest round of intelligence positioning in the Balkans is the tiny Albanian-dominated region of Kosovo, which declared its independence from Serbia in February 2008. In the early hours of November 14, Kosovo Police arrested three individuals suspected of detonating an explosive device at the International Civilian Office, an urban landmark in capital Pristina that houses the office of the European Union’s (EU) special envoy to Kosovo. The three turned out to be German Federal Intelligence Service agents, employees of Bundesnachrichtendienst, or BND, Germany’s foreign intelligence service. What is more, all of them appeared to be working in deep cover (“in private capacity”, as the Kosovo Police spokesperson put it), having no affiliation with the German Embassy in Pristina, no diplomatic passports and no diplomatic immunity. Would the BND really instruct its agents to place a bomb at the EU mission in Pristina? And what is the BND doing in Kosovo anyway? Joseph Fitsanakis explains. [JF]

 

REFERENCES CITED IN THIS REPORT:

Fitsanakis, J. (2008) “German Intelligence Active in Kosovo”, intelNews, November 29

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