Tag Archives: spying

Latest Developments, June 18

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In the latest news and analysis…

G8 promises
The Associated Press reports on the somewhat vague declarations made at the conclusion of the G8 summit in Northern Ireland:

“G-8 leaders also published sweeping goals for tightening the tax rules on globe-trotting corporations that long have exploited loopholes to shift profits into foreign shelters that charge little tax or none. But that initiative, aimed at forcing the Googles and Apples of the world to pay higher taxes, contained only aspirations, no binding commitments.
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And Britain itself stands accused of being one of the world’s main links in the tax-avoidance chain. Several of Britain’s own island territories — including Jersey, Guernsey and the British Virgin Islands — serve as shelters and funnel billions each week through the City of London.”

House cleaning
The Scotsman reports that skepticism remains after UK tax havens promised to “produce action plans” on increasing the transparency of corporations’ true owners:

“[British Prime Minister David] Cameron stepped back from making the new registry of company interests public, amid fears that if Britain acted alone, it would put UK companies at a massive disadvantage to foreign competitors.
Meanwhile, leading tax evasion campaigner Richard Murphy warned of the workload.
He said: ‘The UK’s law on companies filing information – with the register of Companies House and [Her Majesty’s Revenue and Customs] – is simply not enforced now. So why on earth do we think this new law will be enforced unless the resources are put into ensuring that it is?’
There were also concerns that the deal with overseas territories would not cover ‘trusts’, which could still be used by firms to hide details.”

Tax-haven school
While the G8 was talking tough about offshore secrecy, the International Monetary Fund announced that it had opened its Africa Training Institute in a tax haven:

“ ‘Today, we are opening a new chapter in capacity-building in sub-Saharan Africa, thanks to the generous financial contribution and logistical support of the Mauritius government—the host country–as well as financial support pledges from the Australian Agency for International Development and the Chinese authorities,’ IMF representative Vitaliy Kramarenko said at the opening session. The Africa Training Institute’s key objective is to contribute to improved macroeconomic and financial policies through high-quality training, which would ultimately support sustainable economic growth and poverty reduction in sub-Saharan Africa.”

Joint spying operations
The Washington Post reports that the UK government appears not to have been the only one involved in spying on G20 officials during 2009 meetings in London:

“At least some of the documents posted on the Guardian’s Web site contained the logos of the [National Security Agency] as well as Canada’s security agency, suggesting that a portion of the activities were part of joint or shared operations. The documents also indicated that the British were passed information from the NSA, which reportedly was conducting an eavesdropping operation on then-Russian President Dmitry Medvedev.”

Fleecing a continent
The Guardian reports that the African Development Bank’s president, Donald Kaberuka, has said his continent is “being ripped off big time”:

“Kaberuka was addressing the perennial question of foreign corporations extracting Africa’s mineral resources at huge profit for shareholders with scant reward for local populations.
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Africa loses an estimated $62.2bn (£40bn) in illegal outflows and price manipulation every year, much of it exported by multinationals. The Africa Progress Panel under former UN secretary general Kofi Annan recently highlighted how the Democratic Republic of the Congo lost at least $1.36bn in potential revenues between 2010 and 2012 due to knock-down sales of mining assets to offshore companies.”

Justice delayed
The Age reports that Australian police made the “inexplicable” decision not to investigate allegations that Melbourne-based mining giant BHP Billiton had bribed officials in Cambodia, China and Australia:

“Confidential documents reveal how the [Australian Federal Police] and [the Australian Securities & Investments Commission], with the knowledge of federal officials, mishandled one of the nation’s highest-profile corporate graft cases after US officials referred it to their Australian counterparts in May 2010.
US anti-corruption investigators have been probing BHP Billiton since 2009 – an inquiry that is likely to result in the company receiving a massive fine. But they had told the federal police the bribery allegations were ‘’a matter for Australian authorities’.
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It was only recently that a self-initiated internal review led the AFP to reopen the bribery file and initiate a formal investigation.”

Executive wrongdoing
The Standard reports that the vice president of Austria’s central bank has been charged with “overseas graft and money-laundering”:

“Wolfgang Duchatczek, as well as top officials from the Austrian Mint and the central bank’s money-printing subsidiary OeBS, were accused of paying bribes to Azerbaijani and Syrian officials bribes to secure contracts between 2005 and 2011. The bribes amounted to 14-20 percent of the value of the contracts. In total, some 14 million euros made their way to Baku and Damascus via offshore accounts, prosecutors said.”

Offshore database
The International Consortium of Investigative Journalists has announced the launch of a new searchable database containing information from “a cache of 2.5 million leaked offshore files”:

“ICIJ’s Offshore Leaks Database reveals the names behind more than 100,000 secret companies and trusts created by two offshore services firms: Singapore-based Portcullis TrustNet and BVI-based Commonwealth Trust Limited (CTL). TrustNet and CTL’s clients are spread over more than 170 countries and territories.
The Offshore Leaks web app allows readers to explore the relationships between clients, offshore entities and the lawyers, accountants, banks and other intermediaries who help keep these arrangements secret.”

Haiti’s gold
Oxfam’s Keith Slack argues that a looming mining rush could make Haiti’s already considerable problems “even worse”:

“As I’ve written previously, Haiti could take some steps now that could help it avoid some of the worst impacts of the ‘resource curse.’ It must be said, though, that past efforts to build government capacity at the same time a new extractive industry develops, as was the case in Chad, don’t inspire much confidence. If Haiti’s economic development is the primary goal here, and given the country’s multiple governance and environmental challenges (severe water contamination, deforestation, vulnerability to earthquakes and hurricanes among them), there’s a heretical notion to some that should seriously be considered.
Leaving the gold in the ground is an option.”

Latest Developments, June 17

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In the latest news and analysis…

War plans
The Telegraph reports on increasing American willingness to get involved in Syria’s civil war, while some US allies remain skeptical:

Reports from The Times on Friday night claimed that 300 US Marines have already been deployed to northern Jordan, along with a Patriot anti-aircraft missile, ahead of plans to arm the rebels.
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Sweden opposed the US move to provide greater military support. Carl Bildt, the foreign minister, warned that the US decision could set off an arms race with Russia, which is already considering whether to supply its advanced S300 air defence systems. ‘I don’t think the way forward is to get an arms race going in Syria,’ he said, ‘There’s a risk that that would undermine the conditions for a political process.’
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The option of enforcing a limited no-fly zone to protect rebel training bases in Jordan, is also being considered, according to US officials. However, the French government indicated that it would be almost impossible to secure the necessary international agreements.

Diplomatic spying
The Guardian reports that British intelligence agencies monitored the computer and phone communications of foreign officials during G20 summit meetings in London in 2009:

“The disclosure raises new questions about the boundaries of surveillance by [Government Communications Headquarters] and its American sister organisation, the National Security Agency, whose access to phone records and internet data has been defended as necessary in the fight against terrorism and serious crime. The G20 spying appears to have been organised for the more mundane purpose of securing an advantage in meetings. Named targets include long-standing allies such as South Africa and Turkey.
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The documents suggest that the operation was sanctioned in principle at a senior level in the government of the then prime minister, Gordon Brown, and that intelligence, including briefings for visiting delegates, was passed to British ministers.”

UK tax havens
Christian Aid and the IF campaign have released a new report underlining the importance of UK-controlled territories to a global financial system that “encourages crime, corruption and aggressive tax avoidance” in poor countries:

“The report reveals that the British Virgin Islands (BVI), Cayman Islands, Bermuda, Gibraltar, Anguilla and Turks and Caicos – all British Overseas Territories – together with the Crown Dependencies of the Isle of Man, Jersey and Guernsey are now the largest source of Foreign Direct Investment in developing countries.”

Making amends
The University of London’s Lutz Oette highlights the importance of the UK’s recent agreement to compensate Kenyan victims of colonial-era torture but calls on the government, which refused to apologize, to make “much more fundamental changes”:

“Given the historical context, this reparation is a small price to pay for a country that greatly benefited from colonialism. Rather than oppose or undermine such claims, the UK – both the government and the public at large – should welcome these developments. They provide an overdue opportunity to confront Britain’s past, to live up to the rule of law and notions of justice, and to show that it respects victims and their suffering. This includes addressing lingering colonial power imbalances.
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The UK government should therefore take immediate steps to make publicly available all records about abuses committed in all former British territories and to cooperate with any interested parties, including survivors’ organisations. Where sufficient evidence is available, the UK should provide adequate reparation to the victims, which should also comprise a full apology.”

Presidential plea
Guinean President Alpha Condé calls on rich countries to do their bit in the global fight against corruption:

“What we need now is the support of developed countries in building a global business climate that permits those who play by the rules to prosper and locks out those who do not. Too many of the world’s finance centres enable the predators who rely on offshore corporate vehicles to mask their identities; loop their finances through offshore jurisdictions; and use prestigious law firms, accountants, financial advisers and public relations firms to give their destructive behaviour a false veneer of respectability.”

Cosmetic CSR
The News Agency of Nigeria reports that an Edo state government official has said that so-called corporate social responsibility projects by oil companies often do little or no good:

“[Orobosa Omo-Ojo, the Commissioner for Special Duties, Oil and Gas] said such actions by oil firms amounted to insulting the sensibilities of their host communities.
‘Most of the CSR projects by oil companies have not amounted to anything tangible to the host communities.
‘Apart from digging one bore-hole here, a three-classroom block there and a cottage hospital somewhere, the host communities have never benefited enough from oil companies.
‘Yet, they extract crude oil from the host communities for over 15 to 20 years and when the oil wells dry up, they move on leaving the community more impoverished than they met them.’ ”

What would Hippocrates do?
The Overseas Development Institute’s Yurendra Basnett calls on G8 countries to prioritize the duty to do no harm when drawing up international trade agreements:

“In the murky and complex areas of standards and technical requirements, there is a thin line between expanding and restricting trade. Most developing countries lacking capacities are likely to find themselves facing costs not benefits. The World Trade Organization ministerial conference follows the G8 later this year and needs to consider updating the rules that govern such agreements. Perhaps the notion that some benefit – but that others are not left worse-off – needs to be established as a minimum when advanced economies enter into such agreements, with the burden of proof placed on members of the exclusive arrangement. At the very least we need to keep an eye on how this plays out for developing economies that are not a part of these agreements.”

First UN war
The Economist wonders whether the United Nations really knows what it is getting itself into with its first ever combat mission in the Democratic Republic of Congo:

“This is the first time that the UN will send its own troops into battle. In the past the Security Council has authorised the use of ‘all necessary force’ but has delegated the fighting to posses from willing nations. In the Korean war the Americans were in command. In Afghanistan and Libya NATO took charge. In Congo, however, the UN itself will be responsible for artillery fire, helicopter gunships—and the inevitable casualties. Should the UN really be doing this?”