News you may have missed #840

John KiriakouBy IAN ALLEN | intelNews.org |
►►S. Korea prosecutors might seek ex-spy chief’s arrest. Prosecutors said Monday they will decide sometime this week whether to seek an arrest warrant against Won Sei-hoon, who headed South Korea’s National Intelligence Service (NIS) for about four years until early this year. He is suspected of ordering agents to post a slew of politically sensitive comments on the Internet in order to sway public opinion in favor of the ruling party candidate prior to the December 19 national election. Won, who headed the NIS under former President Lee Myung-bak, has been barred from leaving the country pending investigation.
►►CIA self-described whistleblower writes about life in prison. In 2012, former CIA officer John Kiriakou pleaded guilty to violating the Intelligence Identities Protection Act. In January of this year, he was sentenced to 30 months in a low security prison in Loretto, Pennsylvania. In a letter released by his lawyer, Kiriakou describes his day-to-day life behind bars, from his own tiny cell to an almost anthropological study of the lunchroom and the relatively rare prison fights.
►►Comment: End the spy budget secrecy in Israel. Since the establishment of the Israeli state, the security establishment has enjoyed confidentiality with regard to the details of its budget, justified by the need to keep secrets from enemy intelligence services. This lack of transparency has impaired public scrutiny of security expenditure, which represents a large chunk of the Israeli economy. When the watchful eye is distant, the temptation is great to inflate job slots, exaggerate salary increments and hike up pension conditions.

British spy agency to scrap $140m IT system over security fears

DeloitteBy IAN ALLEN | intelNews.org |
Britain’s domestic intelligence agency, MI5, has decided to “accept defeat” and scrap a multimillion digital records management program over fears it could create a dangerous “intelligence vacuum”. The program, which has so far cost the British taxpayer over £90 million ($140 million) in payments to private consultants, was first conceived in the run-up to the London 2012 summer Olympic Games. While evaluating terrorist-related threats posed by the hosting of the Games in the United Kingdom, British security officials decided that the government-wide intelligence-sharing system in place was archaic and in need of serious overhaul. They hired a group of senior IT management consultants from Deloitte, one of the world’s largest professional services firm, headquartered in New York, NY. The pricey corporate experts were tasked with helping MI5 digitally collate intelligence data collected or produced by all departments of the British government. Deloitte’s planning team had projected that the multi-million dollar system would be in place and operational by the summer of 2012, before the Olympic Games were held in London. This, however, proved wildly optimistic; Deloitte barely managed to scrape together a watered-down version of the promised records management program in late 2012. When the program was tested by MI5’s intelligence collection managers, it was found to contain serious errors that, according to British newspaper The Independent, could leave the country’s intelligence agencies “vulnerable and struggling with an intelligence vacuum”. When initially questioned about the Deloitte debacle by British lawmakers, MI5’s (now retired) Director, Sir Jonathan Evans, told the frustrated members of the British House of Commons Intelligence and Security Committee not to worry. Read more of this post

News you may have missed #819 (UKUSA edition)

Charles E. AllenBy IAN ALLEN | intelNews.org |
►►Aussie spies’ exemption from Freedom of Information laws to end? Currently, all Australian intelligence agencies are exempt from the operation of federal Freedom of Information (FOI) legislation that allows the public and journalists to seek access to government records. But now Australian Information Commissioner John McMillan has called for the intelligence agencies to no longer be exempted from FOI laws. Professor McMillan and FOI Commissioner James Popple have made the recommendation in a 97-page submission to the review of FOI laws by former Defence Department secretary and diplomat Allan Hawke.
►►US spy agencies move towards single super-cloud. The US intelligence community is developing a single cloud computing network to allow all its analysts to access and rapidly sift through massive volumes of data. Now in its eighth month, the goal of the effort is to connect the Central Intelligence Agency’s existing cloud to a new cloud run by the National Security Agency. This NSA-run network consists of five other intelligence agencies and the FBI. Both of these clouds can interoperate, but the CIA has its own unique needs because it must work with human intelligence, which necessitates keeping its cloud slightly separate, according to Charles Allen, formerly Undersecretary of Homeland Security for intelligence and analysis.
►►Canadian Army struggles with intelligence-gathering. The Canadian Army is trying to hold on to its intelligence-gathering capability and its ability to disrupt spying in the face of budget strain, according to documents from the Canadian Department of National Defence. The Canadian Press, which obtained the documents, says the Army is “anxious to protect HUMINT network and to better resource its counterintelligence abilities”, but is worried that its shrinking budget in the post-Afghanistan War era will cause “degradation” in those disciplines.

US Senate blocks Pentagon plan to launch new CIA-style agency

The US Department of DefenseBy JOSEPH FITSANAKIS | intelNews.org |
Last week the United States Department of Defense flooded media outlets with press releases announcing the planned establishment of a new military intelligence organization that would rival the Central Intelligence Agency in both size and scope. Not so fast. The US Senate has just blocked the plan citing gross mismanagement of the Pentagon’s existing intelligence operations. The proposed Defense Clandestine Service centers on plans to build an extensive overseas intelligence network, run by the Pentagon’s Defense Intelligence Agency and based on the CIA model of stations located in large metropolitan centers. The DoD said that the new intelligence organization will help the US armed forces broaden their intelligence collection from the current concentration in Afghanistan and Iraq. But the Senate, which was asked to review and approve the plan’s financial requirements, submitted under the 2013 National Defense Authorization Act, has refused to do so. Moreover, it issued a written rationale, drafted by the Senate Armed Services Committee, in which it explicitly forbids the Pentagon using US taxpayers’ money to expand its overseas intelligence operations. According to The Washington Post, the reason for the plan’s rejection is two-fold. First, the Senate appears unhappy with the financial management of the DoD’s existing intelligence collection efforts. The Senate report cites serious concerns about the excessive financial cost and management failures associated with the Pentagon’s ongoing intelligence operations. It specifically mentions “poor or non-existent career management” for DoD intelligence operatives who are often transferred back to regular military units after undertaking “unproductive” assignments overseas, despite extensive intelligence training. The Senate Armed Services Committee’s report stipulates that, before it asks for more money to build the proposed new agency, the Pentagon must “demonstrate that it can improve the management of clandestine [human intelligence] before undertaking any further expansion”. Read more of this post

News you may have missed #807

Noor Inayat KhanBy IAN ALLEN | intelNews.org |
►►Britain to unveil statue of female SOE spy of Indian origin. Born in Moscow to an Indian father and an American mother, Noor Inayat Khan was in Paris when it fell to Nazi occupation. She immediately returned to London to volunteer for the war effort, joined the Women’s Auxiliary Air Force and was recruited by the Special Operations Executive (SOE). She was sent into France on a secret mission in June 1943, but was betrayed and captured a few months later. She was shot by the Nazis in Dachau in September 1944, aged 30, and was posthumously awarded the George Cross as well as the Croix de Guerre by France. She was one of only three women in the SOE to be awarded the George Cross.
►►US intelligence spending falls or second year in a row. The US government’s total spending on intelligence activities fell in 2012, the second year in a row of declining numbers after years of soaring security spending since the September 11 attacks in 2001. The Office of Director of National Intelligence, the top US intelligence authority, announced on Tuesday that total funding appropriated for the National Intelligence Program, covering activities of the CIA and high-tech spy agencies such as the National Reconnaissance Office, was $53.9 billion in Fiscal Year 2012, which ended on September 30. That was down from the $54.6 billion appropriated during Fiscal Year 2011, according to government officials and figures published by the private Federation of American Scientists.
►►Russia wants to park spy planes on French base. France has been asked by Moscow to allow two Russian spy planes to be deployed at a French base in Djibouti to help track down pirates. Russian Defense Minister Anatoly Serdyukov said last week that the Ilyushin Il-38 naval reconnaissance planes would improve Russia’s ability to spot pirates plaguing waters off the coast of Somalia. Djibouti is at the juncture of the Red Sea and the Gulf of Aden. The French base is home to several thousand French service members and a number of military aircraft.

South African intel officials faked threats to increase spy budget

ANC centenary celebrationsBy JOSEPH FITSANAKIS | intelNews.org |
The tendency of some spy agencies to overstate security threats in order to secure governmental funds is hardly novel. But officials in the South African Secret Service appear to have gone a step further: they allegedly paid some of their informants to make bogus threats against the government, in order to prompt an increase in counterterrorist funding. According to Pretoria News, which is owned by The Independent, South Africa’s largest newspaper consortium, the bogus threats were aimed at creating “a false impression of imminent, unprecedented attacks on black people and African National Congress (ANC) members”. The ultimate goal of the perpetrators, says the paper, was to benefit personally from an increase in counterterrorist funding, which is said to run at around R600 million (US$72 million) per year. The plan was carefully designed to coincide with the run-up to the ANC’s centennial celebrations, which took place in January of this year. In one case, an informant was paid by Secret Service officials to record a video message threatening an uprising by whites against the country’s black-majority government, unless the latter put an end to the occupation of white-owned farmland by landless peasants. One video, which made “chilling threats” against black Africans and members of the ANC, was made publicly available on YouTube, causing widespread concern and prompting the government to beef up security measures around ANC facilities in several areas of the country. The threats also led to an extensive government investigation. Read more of this post

News you may have missed #738

Gareth WilliamsBy IAN ALLEN | intelNews.org |
►►Pathologist says MI6 spy may have died alone. Leading British pathologist Richard Shepherd has told the BBC there is “credible evidence” that MI6 officer Gareth Williams died alone. Williams, a mathematician in the employment of Britain’s signals intelligence agency, GCHQ, was found dead in a padlocked sports bag at his home in Pimlico, London, in 2010. According to Dr. Shepherd, bags identical to the one Williams was found in, can be locked by someone inside the bag.
►►Turkey may indict Israeli officers Over Gaza flotilla raid. A prosecutor in Turkey has prepared indictments and recommended life sentences for four senior Israeli officers over the killing of nine activists aboard a Gaza-bound aid flotilla forcibly intercepted in international waters by Israeli commandos two years ago. The indictments, which have not been formally approved by the Turkish judiciary, could further strain relations between Turkey and Israel, which were once close but which deteriorated badly after the flotilla raid on May 31, 2010.
►►Czech secret services alarmed by drastic drop in funding. The BIS, Czech Republic’s counterintelligence service, is used to operating on Kč 1.149 billion (around US$60 million). According to the Finance Ministry’s plan, the agency’s budget will be reduced to Kč 911 million (US$45 million) in 2013. The news has prompted former interior minister and current member of parliament František Bublan to accuse the government of effectively leading to the spy service’s “liquidation”. But Finance Minister Miroslav Kalousek argues that all state institutions must cut back in order to help achieve a balanced budget by 2016.