$1bn fraud at Kabul Bank upsets UK pull-out from AF

03 Economy, 07 Other Atrocities, 08 Wild Cards, 09 Justice, 10 Transnational Crime, Civil Society, Commerce, Commercial Intelligence, Corruption, Government
DefDog Recommends....

Note buried within the report about classification of documents……..

$1bn fraud at Kabul Bank puts UK's Afghan pull-out in peril

IMF and Britain's foreign aid department both withhold money for reconstruction

By Jonathan Owen and Brian Brady

Sunday, 22 May 2011

EXTRACT:

The Department for International Development (DfID) confirmed last night that it had followed the lead of the International Monetary Fund (IMF) in withholding contributions to bankroll hundreds of “nation-building” projects in Afghanistan.

The move, to “protect taxpayers' money”, came as the full extent of the scandal at Kabul Bank – described as the biggest fraud in modern times – became clear. A secret US government report into the debacle “indicates that insiders at Kabul Bank used fraudulent loans to misappropriate $850m (£525m), representing 94 per cent of outstanding loans”.

. . . . . . .

And it notes that, in addition to oversights by Deloitte, which failed to spot and report warning signs of fraud, a team from PwC didn't identify any fraud at Kabul Bank and gave it “a clean bill of health” – something
that “may have acted to delay understanding of the gravity of Kabul Bank's true financial condition both among the examination staff and the international community”, according to the document.

Full Story….

Say What?: Iran Helped Plan 9/11, Train Attackers

05 Iran, Corruption, Government, IO Impotency
Lies Are US

Former Iranian Intelligence Officer Says Iran Helped Plan 9/11 Attacks

Julie Kent

Cleveland Leader, 05/20/2011

A former Iranian intelligence official who defected has claimed that Iran helped to plot the September 11 attacks, according to court papers filed on Thursday in a victims' lawsuit filed in Manhattan federal court against the Tehran government.

Phi Beta Iota: Prior information, yes.  Over 9 countries had prior information and warned the US via official channels prior to 9/11, but Dick Cheney had his information from the source (Pakistan) and used it to plan the counter-terrorism exercise that allowed him to let it happen as planned.  To suggest that Iran, a Shi'ite country at absolute war with Pakistan and Saudi Arabia (Sunni countries, one with the nuclear bomb thanks to Zbigniew Brzezinski), was behind the 9/11 attacks in any way is to raise the spectre of another 935 documented lies being formulated within the US Government to justify a direct attack on Iran. Isn't one three trillion dollar “liar's war” enough?

See Also:

CURVEBALL: The Interview + Integrity RECAP

Arab Spring, Turkish Summer?

07 Other Atrocities, Advanced Cyber/IO, Civil Society, Corruption, Cultural Intelligence, Ethics, Government, IO Multinational, Officers Call, Policies
Chuck Spinney Recommends....

As someone who spent the better part of 2008 and 2009 in Turkey, I find the attached analysis a very useful summary of Turkish developments.  To be sure, I am biased.  Turkey is one of my very favorite countries, I love the people, the culture, and food, and I have been fascinated by its ongoing political evolution.

Mr. Heydarian's cogent comparison of Turkey's evolution to the so-called Arab Spring* provides much food for thought, and I find it eyeopening.

* I prefer the term Arab Revolt to Arab Spring, because the forces of counterrevolution seem to be taking over, and like its predecessor in WWI, it might not lead anywhere.

Chuck Spinney
Saintes Maries de la Mer
France

A Decisive Shift

Arab Spring, Turkish Summer?

By RICHARD JAVAD HEYDARIAN, Counterpunch

May 20 – 22, 2011

Turkey is emerging as an attractive model for the new generation of democrats in the Middle East and North Africa. Turkey, as a bastion of Islamic moderation, economic dynamism, military might, and foreign policy creativity, has inspired many who envision a prosperous and free Arab world.

Read full article….

Phi Beta Iota: The USA is part of the autocratic corrupt system against which the Arabs are revolting.  It is neither a leader nor a model–it is an obstacle for the simple reason that the US Government lacks intelligence and integrity, and therefore has nothing to offer in the way of non-zero strategic analytics acceptable to Brazil, China, India, Indonesia, and everyone else.  The US Government is morally and intellectually bankrupt.

NIGHTWATCH: Pakistan Backlash Continues

02 Diplomacy, 07 Other Atrocities, 08 Wild Cards, 09 Justice, 10 Security, 11 Society, Corruption, Cultural Intelligence, Government, IO Impotency

20 May

China-Pakistan: Update. On the third day of Pakistani Prime Minister Gilani's visit to China – and the 60th anniversary of diplomatic relations, China warned that any attack on Pakistan would be tantamount to an attack on China, The News reported.

After the US, China is emerging as the largest beneficiary from the death of bin Laden!

21 May

Pakistan: An improvised explosive device attack against a two-vehicle US government motorcade on 20 May in Peshawar, western Pakistan, killed one Pakistani and injured 10 others, the Islamabad government said. A suicide bomber executed the attack, according to the US Embassy. No Americans were injured, though a vehicle was damaged. The Tehrik-e-Taliban claimed responsibility.

Comment: This is one of several directions in which the Pakistani Taliban are moving to avenge the death of Usama bin Laden.

Pakistan-US: Pakistan's Punjab Province government has canceled 18 memoranda of understanding with the United States, The Nation reported 20 May, according to the province's law minister, Rana Sanaullah. Speaking on 19 May, he said the federal government should reject foreign aid, as the province has done, and adopt a policy of self-reliance. He said Punjab's ban on aid only applies to the United States and not China, Japan, Saudi Arabia, the United Arab Emirates, Iran and Turkey.

Comment: This is the first wave of a growing anti-American backlash. Pakistanis in the Army and civilians blame the US for driving bin Laden into Pakistan in the first place.

Americans in Pakistan must expect that Pakistani security forces will not protect them competently, will not respond in a timely fashion to requests for help and that emergency services will not arrive on time.

That is precisely the pattern of Pakistani official behavior when Pakistani rioters burned down the US Embassy in Islamabad after an Arab shooting crisis in Mecca, Saudi Arabia, that was blamed on the US. NightWatch was on duty that night in 1979. Pakistan Army troops are credited with having saved 100 US officials from the US Embassy, but that was after they and the police stood by and did nothing as the US Embassy burned and as a US Marine and another US official burned to death inside it. The British Embassy did more to rescue the 100 Americans than the Pakistanis.

The backlash against the “humiliation” of Pakistan is just beginning. The Tehrik-e-Taliban attack and the action of the Punjab provincial government are different manifestations of the same backlash, reminiscent of 1979. The American civilian community and US military personnel in Pakistan need to maintain special alert for the next few months. A drawdown of nonessential personnel – especially families with children — would be timely.

A period of re-evaluation and transition to a significantly modified and realigned Pakistani foreign policy is beginning. It will be much more hostile to the US.

NIGHTWATCH KGS Home

Obama Blows the Middle East Overture

02 Diplomacy, 08 Wild Cards, 10 Security, 11 Society, Corruption, Counter-Oppression/Counter-Dictatorship Practices, Cultural Intelligence, Government, History, InfoOps (IO), IO Impotency, Strategy, Threats

Obama's Middle East speech missed ‘historic opportunity,' say many Arabs

While those involved in Arab uprisings welcomed Obama's support, others were disappointed with his failure to apologize for US support for Middle East dictators

EXTRACT:

“Obama really had an opportunity to reshape and reframe the debate and … he gave it away,” says Shadi Hamid, director of research at the Brookings Doha Center, adding that there was nothing distinctive or imaginative about the address. “This speech was an opportunity to say to Arabs, ‘We as Americans made mistakes, we did not support democratic aspirations as much as we should have, but we’re going to do better.’ Obama didn’t say that.”

Read full article….

Phi Beta Iota: The USG has no strategic analytic model, no strategy, and no concept for how to achieve Whole of Government and multinational eight-tribe harmonized non-zero (win-win) outcomes….because to do so would stop the co-option of the USG on behalf of the few at the expense of the many.   Obama–and Clinton–confuse “strategic communication” with strategic intelligence, and they are bad at it.

See Also:

Russian TV Slam (Video): Map of Arab Rage: Imperialism in the making?

Review: Reconciliation–Islam, Democracy, and the West

Review: Leap of Faith–Memoirs of an Unexpected Life

Review: Faith-Based Diplomacy–Trumping Realpolitik

Review: Democracy Matters–Winning the Fight Against Imperialism (Hardcover)

Review: Palestine Inside Out–An Everyday Occupation

Review: Palestine–Peace Not Apartheid

Review: What Went Wrong? Western Impact and Middle Eastern Response

Review: Devil’s Game–How the United States Helped Unleash Fundamentalist Islam

Review: A Peace to End All Peace–The Fall of the Ottoman Empire and the Creation of the Modern Middle East

Review: Blood and Oil–The Dangers and Consequences of America’s Growing Dependency on Imported Petroleum

Review: Blood in the Sand–Imperial Fantasies, Right-Wing Ambitions, and the Erosion of American Democracy (Hardcover)

Worth a Look: Book Reviews on Empire as Cancer Including Betrayal & Deceit

Supreme Court Says Warrants, States’ Rights Unnecessary

07 Other Atrocities, 09 Justice, Civil Society, Corruption, Cultural Intelligence, Law Enforcement

Supreme Court Says Warrants, States' Rights Unnecessary

Thomas R. Eddlem, 18 May 2011

NewAmerican

States cannot grant their citizens wider freedoms from search and seizure than federal courts do, and police may manipulate events that allow them to avoid getting Fourth Amendment search warrants from judges for home searches, the U.S. Supreme Court ruled May 13 in the case of Kentucky v. King. The 8-1 decision included a stinging dissent from Justice Ruth Bader Ginsberg, one of the most liberal justices on the bench.

Ginsberg argued in her dissent: “The Court today arms the police with a way routinely to dishonor the Fourth Amendment’s warrant requirement in drug cases. In lieu of presenting their evidence to a neutral magistrate, police officers may now knock, listen, then break the door down, nevermind that they had ample time to obtain a warrant.”

Read rest of article….

Phi Beta Iota: We don't make this stuff up.  The USA is down the toilet at multiple levels.

Secrecy News: USG Out of Control on Classification

07 Other Atrocities, 09 Justice, 10 Security, 11 Society, Corruption, Cultural Intelligence, Government, Law Enforcement

GOVERNMENT INSISTS ON RIGHT TO CENSOR BOOK

Government attorneys this week asked a court to dismiss a lawsuit brought by author Anthony Shaffer who claimed that his freedom to publish a memoir of his military service in Afghanistan had been violated.  The government said that Mr. Shaffer's book, “Operation Dark Heart,” which appeared last September in censored form, contained properly classified information which the author has no right to publish.

What makes the case doubly strange is that uncensored review copies of the book are in circulation, along with the redacted version that has become a best seller.  As a result, the case provides a unique opportunity for the public to assess the quality of official classification practices in real time by comparing the two (pdf).

The government has “unlawfully imposed a prior restraint upon the plaintiff by obstructing and infringing on his right to publish unclassified information,” author Shaffer stated in his December 14, 2010 complaint (pdf) against the Department of Defense and the CIA.

Not so, said the Justice Department in its new motion to dismiss (pdf), dated May 16.  The book contains classified material and “Plaintiff has no First Amendment right to publish classified information.”

This week the government also told Mr. Shaffer's attorney, Mark S. Zaid, that several previously censored words or sentences in the book could now be disclosed.  “While classified eight months ago, [they] no longer remain classified.”  So, for example, the Justice Department said that this sentence was properly classified last September but is now unclassified and may be made public:

“Dawn was an awkward time of day when night-vision goggles were not effective, and it was hard to distinguish anything more than gray and purple shapes.”

A listing of other newly declassified words and sentences in the book was provided by the Justice Department on May 16.

A side-by-side presentation of several censored and uncensored pages from Mr. Shaffer's book, including some passages that have since been declassified and some that have not, may be found here (pdf).

See also “Behind the Censorship of Operation Dark Heart,” Secrecy News, September 29, 2010.

TRANSFORMING CLASSIFICATION, OR NOT

The Public Interest Declassification Board, a White House advisory body, was asked by President Obama to develop recommendations for a “fundamental transformation” of the national security classification system.  The Board developed several proposals of its own and solicited others from interested members of the public.  All of those, including one from the Federation of American Scientists, have now been posted online for public comment.

The Board will hold a public meeting on May 26 at the National Archives to discuss the proposals.

While well-intentioned, the process suffers from several limitations.  First, the President did not specify what manner of “transformation” he had in mind.  This is problematic because the path selected for transformation naturally depends on the desired goal.  Second, the Board has no particular influence or leverage that it can exert to advance its ultimate recommendations.  Even at the White House, most relevant national security personnel seem to be unaware of or uninterested in the Board's deliberations.  Finally, there is no internal incentive to drive transformation and no visible leadership to compel it.

In truth, the classification system is undergoing transformation at every moment, but mostly in undesirable ways.  Thus, during President Obama's first full year in office, the number of “original classification decisions,” or new secrets, grew by 22.6 percent, according to the latest annual report (pdf) from the Information Security Oversight Office.

Phi Beta Iota: In combination with the now documented and incredibly unconstitutional belief of the Department of Justice that it has the right to lie to the Court anytime it wishes to, and a Congress that abdicated its Article 1 responsibilities right after Newt Gingrich led the “revolution” that ended any form of bi-partisanship, it can safely be said that the US Government is out of control–not just on classification, but on everything else as well.  This is UGLY.

See Also:

Reference: US DOJ Tells Court It Has Authority to Lie UPDATED to include Amended Order of 27 April 2011

Secrecy News: Executive Privilege–Thomas Drake, Whistleblower, as a Political Prisoner in the USA…

The Criminal Insanity of Both US Parties–Borrow One Trillion a Year, Debate About Tax Increases