The Pandora Papers are Exposing Corruption of World Leaders

A HUGE hat tip to the investigative journalists over the intensive and dedicated work on exposing tax evaders and money laundering across the globe.The Big Picture: Real estate in some of the world’s most coveted neighborhoods is owned by anonymous companies registered in notoriously secretive jurisdictions, like the British Virgin Islands (BVI).

Behind many of these offshore firms are political elites — including heads of state — who are often trying to avoid taxes or, in some cases, launder money.

?? Dictator’s Family in London: Family and close associates of Azerbaijan’s president — including his teenage children — secretly purchased $700 million worth of London real estate. Read more.

?? Czech PM in France: Czech Prime Minister Andrej Babiš set up a British Virgin Islands company in 2009 that secretly loaned €15 million to other shell companies he owned in the U.S. and Monaco. The money was eventually used to buy luxury French real estate. Read More.

?? Zelensky’s Offshore Network: Comedian Volodymyr Zelensky, who won Ukraine’s presidency on an anti-corruption platform, was co-owner of an offshore network. Even now, his family appears to still be able to profit from one of the companies. Read More.

?? Russian Money in Croatia: The family of a wealthy Croatian tycoon with ties to Vladimir Putin secretly took over a real estate developer. The family then funnelled suspicious funds from a Russian pipeline company to this real estate firm, using an opaque trust. Read More.

?? Kazakh Oligarchs and a ‘Tokal’: Two oligarchs are linked to $30 million worth of transfers to the alleged unofficial third wife (or tokal) of Kazakhstan’s former president, who remains arguably the most powerful man in the country. Read More.

?? Serbian PEP’s Properties: When our Serbian colleagues reported that Siniša Mali, then the mayor of Belgrade, had bought 24 properties on Bulgaria’s coast, he denied the allegations and offered a challenge: “If you determine I’m the owner of these apartments, they’re all yours…”

Well, the Pandora Papers prove he is the properties’ owner, without a shadow of doubt. We’re still waiting for the keys. Read More.

Other finds in the data: ?? A Slovenian cosmetics fraudster.

PANDORA PAPERS FROM PARTNERS

OCCRP was one of 150 media outlets to investigate leaked documents from 14 service providers. Here are some highlights from our colleagues outside of the OCCRP network. 

?? Tony Blair’s Taxes: Former U.K. Prime Minister Tony Blair and his wife saved hundreds of thousands of pounds in property taxes when acquiring a London office building from an offshore company. Read more in the Guardian.

?? Kenyan Dynasty: The family of Kenyan President Uhuru Kenyatta secretly owned a web of offshore companies in Panama and the BVI. Read more in Finance Uncovered. 

?? Pakistan PM’s Inner Circle: Pakistan’s Prime Minister Imran Khan has surrounded himself with people who have secret holdings hidden offshore. Read more in ICIJ. 

?? King of Jordan in the U.S. and U.K.: Jordan’s long-ruling monarch King Abdullah II has secretly owned 14 luxury homes in the U.K and the U.S., which he purchased through front companies registered in notorious tax havens. Read more in ICIJ.

? Latin American PEPs: One of Central America’s most prestigious law firms, Alcogal, set up offshore companies for 160 politicians and public officials — including some accused of looting their own countries. Read more at ICIJ.

IMPACT & RESPONSES

?? Pakistan: Prime Minister Khan welcomed the Pandora Papers in a tweet, vowing to investigate citizens named in the investigation.

?? Czech Republic: The Czech national police announced they will “act upon” the Pandora Papers’ revelations into the prime minister, who is up for reelection this week.

?? Sri Lanka: Sri Lanka’s anti-corruption commission will reportedly investigate the assets of any politician named in the Pandora Papers, which includes ex-minister Nirupama Rajapaksa.

Find more impact at ICIJ

The U.S. government has long condemned prominent offshore financial centers, where liberal rules and guarantees of discretion have drawn oligarchs, business tycoons and politicians.

But a burgeoning American trust industry is increasingly sheltering the assets of international millionaires and billionaires by promising levels of protection and secrecy that rival or surpass those offered in overseas tax havens. That shield, which is near-absolute, has insulated the industry from meaningful oversight and allowed it to forge new footholds in U.S. states.

Explore the latest stories in our groundbreaking Pandora Papers investigation:

Border Walls and Pipelines, Unacceptable with Exceptions

So, the most immediate Executive Order signed by President Biden was to shutter the Keystone XL pipeline project. It has devastated the energy industry and the true costs to Americans are still growing outside the scope of higher prices of gasoline and the loss of jobs. The effects include revenues to states that provide funding the public education, tax increases, alterations in foreign policy and relations, slowing economic recovery across many industry sectors and destabilizing power sources for businesses and homes. For some finer points and financial context, go here. 

But, did you know the United States is actually funding a pipeline across Turkmenistan, Afghanistan, Pakistan and India? Yes, in all the peace talks with the Taliban, we have for decades been providing financial aid, the amount is too convoluted to determine but this goes back to collaboration between the United States and the Taliban and even Russia.

A Taliban delegation has paid a surprise visit to Turkmenistan to pledge support for a planned natural gas pipeline across Afghanistan, providing welcome reassurance for a project whose viability has long been rendered doubtful by security concerns.

Signs point to the trip having been brokered by the U.S. government, which has long championed what is known as TAPI, named after the four countries the pipeline would cross: Turkmenistan, Afghanistan, Pakistan and India.

Other projects alluded to by the Taliban spokesman are the Turkmenistan-Afghanistan-Pakistan high-voltage power transmission lines, or TAP, and railways from Turkmenistan to Afghanistan.

Should such reassurances hold, the main hurdle facing TAPI’s developers would be raising the necessary funds. Estimated costs for the project have been placed at anywhere up to $10 billion, although the chief executive of the TAPI Pipeline company, Muhammetmyrat Amanov, stated in 2018 that he was forecasting outlays closer to $7 billion.

Global energy majors have latterly shown no enthusiasm for TAPI, but that was not always the way. In 1997, a consortium comprised of six companies and the government of Turkmenistan was formed with the goal of building a 1,271-kilometer pipeline to Pakistan. India was not yet part of the plan. The largest share in that consortium, 54 percent, was held by California-based Unocal Corporation. In 1997, the American company even arranged travel to Texas for a senior Taliban delegation for negotiations. Deadly terrorist attacks in 1998 against U.S. embassies in Tanzania and Kenya organized by Al-Qaeda, whose leader Osama bin Laden had been provided safe haven by the Taliban, put paid to all that.

The Taliban was not entirely deterred, though. In 1999, the militant group, which had by then extended its control to almost all of Afghanistan, entered into talks on the route with Turkmenistan and Pakistan. Lack of cash and the rapidly evolving geopolitical landscape made it all pointless. By the end of that year, Turkmenistan had reached an agreement with Russia’s Gazprom on the delivery of 20 billion cubic meters of gas in 2000.Geofinancial: Turkmenistan Pushing TAPI, the Original ... source

Breakthroughs on the Afghan and Caspian fronts come at an extremely propitious time for Turkmenistan, which has struggled to find viable buyers for its vast gas reserves.

Turkmenistan is currently almost entirely reliant on China. Russia buys paltry amounts of gas.

Since the launch of the Central Asia-China pipeline in 2009, Turkmenistan has pumped 290 billion cubic meters of gas to China. But whereas it was once predicted that the Beijing-funded pipeline would be carrying 65 billion cubic meters of Turkmen gas annually by 2020, the entire route still only has capacity for 55 billion cubic meters per annum, and both Kazakhstan and Uzbekistan also use the pipeline.

Considering Turkmenistan has the fourth-largest reserves of natural gas in the world – an estimated 19.5 trillion cubic meters, nearly 10 percent of the world’s total – current export figures nowhere near reflect its potential. source

Crazy huh?

But hold on…there is the matter of Biden cancelling the border wall construction between the United States and Mexico.

Border walls around the world is a sign of the times and the Unites States also provides some foreign funding for walls far away. Someone ask Joe, Jen or Kamala about this…

Going back to 2016, Donald Trump promoted the construction of the border wall while the rest of the critics attacked the whole mission. The Atlantic in part included some of the top complaints. Clinton is suggesting that walls are useless against today’s borderless threats. Obama is suggesting that the world is marching toward ever-more interconnectedness, trampling the walls in its way. Both seem to present walls as a thing of the past. In fact, though, border walls and fences are currently going up around the world at the fastest rate since the Cold War

Ramo, a former journalist and the co-CEO and vice chairman of the consulting firm Kissinger Associates, applies network theory to international affairs. The fall of the Berlin Wall and the end of the Cold War helped usher in unfettered globalization, he argues, but now a backlash is underway. Globalization has gradually produced a desire in certain parts of the world for separation—particularly after a series of traumas, including the 9/11 attacks and the global financial crisis, exposed the hazards of freewheeling integration. And separation is increasingly being achieved through physical barriers.

The statistic Ramo cites about the spread of walls comes from a study by the political scientists Ron Hassner and Jason Wittenberg: Of the 51 fortified boundaries built between countries since the end of World War II, around half were constructed between 2000 and 2014. Hassner and Wittenberg found that such boundaries—structures like the existing U.S.-Mexico border fence, the Israel-West Bank barrier, and the Saudi Arabia-Yemen border fence—tend to be constructed by wealthy countries seeking to keep out the citizens of poorer countries, and that many of these fortifications have been built between states in the Muslim world.

“The walls, fences, and trenches of the modern world seem to be getting longer, more ambitious, and better defended with each passing year,” Ramo writes. “The creation of gates is … the corollary of connection.”

Recently, many of those fences have been appearing in Europe, as countries there struggle to process an influx of migrants and refugees. (The chart above doesn’t account for all of these new barriers, a number of which have been constructed since 2014.) The Economist observed in January that, as a result of the refugee crisis and the conflict in Ukraine, “Europe will soon have more physical barriers on its national borders than it did during the Cold War.” New border controls and barriers, including Austria’s proposed fence along the border with Italy, are threatening the viability of the European Union’s passport-free Schengen zone.

“Talking about walls or no walls is not the right discussion,” Ramo added. He would rather the discussion be about how gatekeeping should work, including questions like “what kind of immigration do we want to encourage and how do we want to structure that process.”

One of the reasons these trends are important is that they reframe the 2016 election from a contest between the past and the future, as Bill Clinton and Barack Obama imply, to one between two plausible futures. Ramo might call it a divide over the relative wisdom of more open versus more closed networks.

For an interactive migrant map for recent years go here. 

Hypocrisy right? The Daily Mail of the UK did a piece in 2015 of 65 countries that have erected walls and fences. 

Europe Refuses to Admit Iran is a Terror State with Tangible Evidence

When the United States collaborates with counterparts in Europe, it must be quite frustrating when European officials ignore evidence. Perhaps this is all driven by German Chancellor Merkel as she appears to only concentrate on stopping Brexit. But read on…

In Part: British intelligence in 2015 caught an alleged Hezbollah terrorist stockpiling more than three tons of ammonium nitrate, a common ingredient in homemade bombs, on the outskirts of London, but never divulged the plot, The Daily Telegraph reported Sunday.

The report said the arrest came just months after the UK joined the US and other world powers in signing the Iran nuclear deal and speculated that it was hushed up to avoid derailing the agreement with Tehran, which is the main supporter of the Lebanese Hezbollah group.

Acting on a tip from a foreign intelligence agency, MI5 and the Metropolitan Police raided four properties in North West London, discovering thousands of disposable ice packs containing ammonium nitrate, the Telegraph said.

According to the report, the plot was part of a wider Hezbollah plan to lay the groundwork for future attacks and noted foiled Hezbollah operations in Thailand, Cyprus and New York. All those plots were made public and were believed to have targeted Israeli interests around the world.

Ynetnews News - Hezbollah member jailed in Cyprus bomb ... photo

The Telegraph said the Cyprus case was strikingly similar to the one in London. In 2015 in Cyprus, confessed Hezbollah agent Hussein Bassam Abdallah was sentenced to six years in jail after he was found with 8.2 tons of ammonia nitrate in his home. He had reportedly planned to attack Israeli targets. (by the way, this Abdallah cat has dual citizenship of Lebanon and Canada.)

The Telegraph said its information came after a three-month investigation in which more than 30 current and former officials in Britain, America and Cyprus were approached and court documents were obtained. More here.

But hold on there is more. John Kerry and Barack Obama promised inspections and validations of the Iranian nuclear program, remember that? Well…..

For the first time since the signing of the 2015 Iran nuclear deal, the UN’s nuclear watchdog on Monday did not explicitly report that Iran was implementing its nuclear-related commitments and said that its rate of uranium enrichment was increasing.

In each of the previous reports since the agreement, International Atomic Energy Agency director general Yukiya Amano wrote that “Iran is implementing its nuclear-related commitments,” text that was notably absent from Monday’s report.

Iran announced May 8 that it no longer considered itself bound to keep to the limits of stocks of heavy water and enriched uranium that it agreed to as part of the 2015 Joint Comprehensive Plan of Action (JCPOA),which lifted crippling economic sanctions against it. Tehran’s move came a year after US President Donald Trump pulled out of the deal. Washington has also reinforced economic sanctions against the Islamic Republic.

The latest IAEA report noted that “technical discussions… are ongoing” with Iran in relation to its installation of up to 33 advanced IR-6 centrifuges. But it did not specify the content of those discussions.

Iran has also said that if the other parties to the JCPOA do not speed up work on mitigating the effects of US sanctions, by early July it may stop abiding by restrictions on the level to which it can enrich uranium and on modifications to its Arak heavy water reactor.

Two weeks ago, the latest inspections report by the IAEA said that while stocks of uranium and heavy water had increased, they were still within the limits set by the JCPOA.

In Tehran on Monday, Iran’s Foreign Minister Mohammad Javad Zarif warned that those waging “economic war” against his country through US sanctions could not expect to “remain safe.” Read more here.

Tommy Robinson is Free, but Hold on….

Daniel Pipes posted:

But Robinson still has to go to court again for another hearing, where he could still be found guilty of contempt of court, which would be in breach of his suspended sentence that still stands, for doing the same thing previously.

Manchester far-right protestors tussle with police | Daily ...

Tommy Robinson has been freed from prison on bail after judges quashed findings that he committed contempt of court in Leeds.

But the Court of Appeal dismissed the far-right figure’s case against another incident in Canterbury and ordered him to attend a new hearing where he could be jailed again.

The Lord Chief Justice took little over a minute to read out the judgment to a packed courtroom, silencing Robinson’s supporters as they started applauding.

Lord Burnett said the court was allowing his appeal only “in respect of the committal for contempt at Leeds Crown Court” and granted Robinson bail ahead of a hearing to take place at the Old Bailey in London.

Supporters who had gathered outside the Royal Courts of Justice cheered as news of the judgment came through, as counter-demonstrators shouted “Nazi scum, off our streets” through a megaphone.

Robinson, whose real name is Stephen Yaxley-Lennon, was released from HMP Onley later on Wednesday.

“I have a lot to say, but not to you,” he told journalists while flanked by two men carrying his luggage, before being driven away.

High-profile backers including the Ukip leader Gerard Batten, Dutch opposition leader Geert Wilders and the former Breitbart London editor Raheem Kassam hailed the verdict as a victory for “freedom of speech”.

But judges did not say Robinson had not committed contempt of court, and accused him of delaying the appeals “for tactical reasons and collateral advantage”.

They dismissed calls to quash findings that he committed contempt at Canterbury Crown Court in May 2017, saying criticism by Robinson’s legal team “had no substance”.

Robinson was handed a three-month suspended sentence for trying to film defendants inside the court during jury deliberations, after being told to stop and warned filming was against the law.

But Lord Burnett, Mr Justice Turner and Mrs Justice McGowan found that procedural failings by a judge who later jailed Robinson for 13 months at Leeds Crown Court “gave rise to unfairness” and meant proceedings were “fundamentally flawed”.

Robinson was arrested on 25 May after broadcasting a Facebook Live video that broke a blanket reporting restriction on an ongoing set of trials, and jailed hours later.

The Court of Appeal previously heard that footage of Robinson discussing the ongoing case caused jury deliberations to be paused, sparking an attempt by defence lawyers to have the case dismissed.

Judges found that while Geoffrey Marson QC was right to bring Robinson before him to have the video deleted and protect jury deliberations, the case was dealt with too fast and did not follow criminal procedure rules.

“There was no clarity about what parts of the video were relied upon as amounting to contempt, what parts the appellant accepted through his counsel amounted to contempt and for what conduct he was sentenced,” the judgment said.

“Whilst the judge was entitled to deal with the contempt himself, the urgency went out of the matter when the appellant agreed to take down the video from Facebook. There should have been an adjournment to enable the particulars of contempt to be properly formulated and for a hearing at a more measured pace, as had happened in Canterbury.”

They ordered the matter to be heard again at the Old Bailey “as soon as reasonably possible”, and bailed Robinson on the condition he attends the new hearing and does not go within 400m of Leeds Crown Court. More here.

Trump Takes on Germany/Europe at NATO Summit

Toplines from Trump at the NATO summit:

  1. Trump accused Germany of being “totally controlled” by Russia in comments about their proposed Nord Stream 2 gas pipeline.
  2. German Chancellor Angela Merkel replied that she’d already “experienced the Soviet occupation … it is good that we are independent today.”
  3. Trump called on NATO members to double their defense spending commitment to 4%. (The U.S. is at 3.5%). Only five nations (if you include Poland at 1.99%) currently meet the 2% target for 2024.

Axios’ Jonathan Swan asked NATO Secretary General Jens Stoltenberg a pair of questions in Brussels.

  • Swan 1: Did President Trump assure you he wouldn’t make any concessions in his meeting with Vladimir Putin — for example on Crimea?
  • Stoltenberg 1: “Action speaks louder than words. And I’m absolutely confident about the U.S. commitment to European security.” Stoltenberg noted that all allies, including the U.S., signed a declaration today saying they don’t recognize Russia’s illegal annexation of Crimea. (But he dodged the question about what assurances he sought and received.)
  • Swan 2: Has President Trump, in any of his conversations with you, suggested he thinks the United States has too many troops in Europe?
  • Stoltenberg 2: “This is the unified position of all allies… The illegal annexation of Crimea is one of the main reasons why NATO has implemented the biggest reinforcement of collective defense since the end of the Cold War.” (Again, separating Trump’s words from the Trump administration’s deeds.)

Swan’s thought bubble: Stoltenberg has a point about Trump’s words versus his administration’s deeds (so far). Trump has not done anything to reduce U.S. military support for NATO and has actually increased military investments in Europe.

  • But at the same time Trump has done what no recent U.S. president has done — publicly questioned the value of NATO for the U.S. and in the process made some of America’s closest allies privately question whether they can still rely on American protection.

Macron and Trump France’s President Emmanuel Macron jokes with President Trump. Photo by Tatyana Zenkovich/AFP/Getty Images.

So, what about NATO?

Former defense minister of Georgia stands to ask if NATO regrets not giving full them membership, because “it was seen as an invitation for Russia” to invade. And asks when will there be appetite for NATO expansion. Germany’s Defense Minister Ursula von der Leyen: “I have been to a lot of NATO meetings… this summit has the most substance that I have seen”
President Trump asserts that Germany is ‘captive to Russia’ over pipeline project in testy exchange with NATO chief. That was at the breakfast meeting.

Then is Europe threatened by Russia, hence the reason for NATO? Yes, an example –>

A group of Russian special operations forces parachuted onto the island of Gogland in a Russian-controlled portion of the Gulf of Finland. They hid their parachutes, journeyed deep into the interior, and destroyed a series of mock communications stations, radars and ASM batteries. They then prepped a landing site for a helicopter escape — despite the fact that the island already has a helipad.

The troops jumped from a Mi-8AMTSH helicopter at an altitude of 2,500 meters, and used satellite navigation equipment to guide them to their landing site, notes a July 10 press release on the drill from the Russian Ministry of Defense. The soldiers that took part in the exercise had “not less than a hundred jumps with parachutes of various types,” it said.

Aki Heikkinen, who curates Russianmilitarywatch.com, pointed out that Gogland, seized by Russia in 1944, is just 24 miles from the Finnish city of Kotka. More here.

So, as these encounters went on today at the NATO Summit, Trump went so far as to suggest 4% of GDP payments to NATO members.

Meanwhile: NATO existed below the creation of the European Union, and…

President Trump has consistently railed against other members of the NATO security alliance for freeloading off the United States and not doing enough to manage their own defense.

“NATO has not treated us fairly,” he told reporters before leaving for a NATO summit meeting this week in Brussels. “We pay far too much and they pay far too little.”

As with many Trump crusades, there’s truth to his claims—but more to the story. Trump will press for more European defense spending at this week’s meeting, which is likely to be contentious. Other NATO members are already pushing back, arguing that their commitment to defense is rising and they back US priorities in other important ways. But the basic numbers support Trump.

The United States has been the biggest contributor to NATO since Western nations founded the alliance in 1949 to help prevent any more world wars and shield Europe from the Soviet Union. Underpayments by European nations have been contentious since long before Trump started complaining about the problem–especially following the fall of the Berlin Wall in 1989, when many nations began to slash defense spending.

In 2014, NATO agreed that each member country should spend a minimum of 2% of GDP on defense within a decade. So far, only five countries meet that threshold: the United States, the United Kingdom, Greece, Estonia and Latvia. The United States spends 3.5% of GDP on defense, the most of any NATO member. Among other big NATO members, France spends 1.8% of GDP on defense, Germany 1.2%, Italy 1.2%, and Spain 0.9%.

NATO has 29 member countries. Here’s how they measure up:

Graphic by David Foster

NATO said earlier this year that eight members will meet the 2% threshold in 2018, with Poland, Romania, and Lithuania joining the club. The alliance also said 15 nations would hit the target by 2024, though it hasn’t identified the other seven. That would still leave 14 members falling short of NATO’s own spending target. And that’s if there’s no recession by then, which could force governments to cut spending, not raise it, as tax revenue declines.

European leaders seem to realize they have a weak argument when Trump blasts them for subpar defense spending. Donald Tusk, president of the European Council, argued in a statement prior to Trump’s visit that Europe spends more on defense than China and Russia, and he urged Trump to “appreciate your allies.” But he also acknowledged that Trump is right on spending, saying “dear Europe, spend more on your defence, because everyone respects an ally that is well-prepared and equipped.”

While Trump is right about the spending numbers, some analysts worry he’s overly fixated on one metric that doesn’t fully capture the way various NATO members contribute to real-world security operations. Also important, for instance, are troop and equipment contributions to NATO missions. By those metrics, some of the deadbeat members look much more involved.

NATO members other than the United States have taken on steadily more of the NATO mission in Afghanistan since the US first invaded in 2001, for instance. Seven nations—the Czech Republic, Romania, Montenegro, Albania, Denmark, Croatia and Germany—contributed more troops to Afghanistan operations, as a percentage of their total military force, than the United States did between 2015 and 2017, according to analysis by the Center for Strategic and International Studies.

By the same metric, nine NATO members, led by Canada, Norway and Denmark, contributed a larger portion of their military force to operations against ISIS than the US did in 2016. And the US ranks 18th in refugees taken in due to Mideast instability as a percentage of total population, with Turkey, Sweden and Norway accepting the most.