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Suit: U.S. Firms’ Bribes Funded Iraq Militia Attacks on Americans
WASHINGTON — A group of American veterans filed a federal lawsuit Tuesday against U.S. and European drug companies and medical device makers, accusing them of supporting an Iran-backed Iraqi militia that killed and wounded hundreds of Americans.
The suit is filed under a law that allows Americans injured by terrorism overseas to seek civil damages. The more than 100 plaintiffs include injured U.S. Iraq war veterans and their families. The defendants are either parent companies or subsidiaries of AstraZeneca plc (AZN); Johnson & Johnson (JNJ); Pfizer Inc. (PFE); Roche Holding AG (RHHBY); and the General Electric Company (GE).
The 203-page lawsuit accuses the companies of paying bribes to officials of Iraq’s health ministry that benefited the Mahdi Army, an Iranian-backed militia that the suit says worked closely with Hezbollah, a Lebanese group that has been designated a terrorist organization by the U.S. government.
Iraqi Shiites of the Mahdi Army militia loyal to cleric Moqtada al-Sadr vow to fight ISIS in a show of strength in a military parade on June 21, 2014 in the Sadr City district of Baghdad, Iraq.Scott Peterson / Getty Images file
The companies sold Iraq’s government-run healthcare system millions of dollars worth of drugs and medical devices, and paid the bribes, the suit alleges, as a cost of doing business.
Related reading: By late 2006, at the height of sectarian violence, the Sadrists were a formidable military force. In the wake of the February 2006 bombing of the al-Askari Mosque in Samarra (one of the holiest Shi’a shrines) and frequent attacks by al Qaeda in Iraq, JAM positioned itself as a security guarantor for the Shi’a. However, the organization also spawned death squads responsible for sectarian cleansing.9 By mid-2006 these militias were engaged in a violent campaign of expansion into Sunni and mixed Sunni-Shi’a neighborhoods. JAM soon controlled large areas of Baghdad and they increasingly relied upon corruption, intimidation, and extortion to enhance their wealth and power. More here.
After the U.S. invasion, Iraq’s political factions divvied up government departments under a political spoils system, and the Mahdi Army’s political wing took control of the health ministry. The state-owned drug purchasing monopoly, Kimadia, demanded a 20 percent “religious tax” from the vendors on every contract, the lawsuit said.
“That policy required, as a general matter, companies doing business with Kimadia to pay commissions of at least 20 percent on every contract, the lawsuit says. “This was sometimes paid in the form of in-kind bribes but was often paid in cash as well. Such cash payments were typically called ‘commissions’ — the Iraqi euphemism for bribes. From 2004-2013, it was standard practice for companies dealing with (the Ministry of Health) to pay ‘commissions’ on every major sales contract.”
The in-kind bribes were in the form of what were known as “free goods,” including drugs and medical devices, that Iraqi officials would sell on the black market, says the lawsuit, which specifically accuses each defendant of paying such bribes.
The suit says the defendants paid the bribes even though they knew or should have known that the money was going to a dangerous armed faction.
Iraqi Shiite cleric Moqtada al-Sadr delivers a speech to his supporters following Friday prayers at the grand mosque of Kufa in the holy city of Najaf, on April 3, 2015.Haidar Hamdani / AFP/Getty Images file
“Defendants knew or recklessly disregarded that their transactions helped fund Jaysh al-Mahdi attacks on Americans,” the suit says, using an Arabic term for the Mahdi Army.
In a statement, Pfizer said it “categorically denies any wrongdoing.” Roche said it had not been served with the suit and could not comment. A GE spokesperson said the company became aware of the complaint Tuesday and is “thoroughly reviewing the allegations.” The other companies did not immediately respond to requests for comment.
The Mahdi Army, led by Muqtada al-Sadr, is an Iranian-backed militia that opposed the American invasion and occupation of Iraq. It was never designated a terrorist organization by the U.S., a fact that could pose a legal hurdle for the plaintiffs. The suit argues that it acted as a terrorist organization and worked closely with Hezbollah, a designated terrorist organization.
Sadr posed a problem for the American war effort from the start, when he allegedly stabbed to death a U.S.-backed political opponent in 2003. American authorities issued a warrant for his arrest on murder charges but never executed it, fearful of the backlash it might cause among his Shiite supporters.
The U.S. thrice contemplated operations to kill Sadr but decided against doing so, a former CIA officer with personal knowledge told NBC News.
Sadr and his militia fought on and off for years against U.S. forces. In 2004, after the U.S. closed his newspaper, his forces seized control of Shiite areas around Iraq, leading to fighting that killed at least 19 Americans.
The lawsuit cites media and government reports asserting that the Mahdi Army worked closely with Hezbollah to attack American forces, including with sophisticated Iranian-build roadside bombs that penetrated U.S. armor.
Those bombs, known as explosively formed penetrators, or EFPs, killed 196 Americans and wounded 861 from 2005 to 2011, according to a U.S. military study cited in the lawsuit.
The suit was brought by the Washington, D.C.-based law firms of Sparacino & Andreson PLLC and Kellogg, Hansen, Todd, Figel & Frederick, PLLC.
One of the plaintiffs’ lawyers, David C. Frederick, represented NFL players in their suit against the NFL over brain injuries. That case resulted in a $765 million settlement fund for players.
Some of the defendants have been accused in the past of violating the U/S. law against bribing foreigners to secure business.
In 2010, GE paid $23.4 million to the federal government to settle allegations by the Securities and Exchange Commission that its subsidiaries had violated the Foreign Corrupt Practices Act in connection with alleged kickbacks paid in Iraq under the United Nations’ oil-for-food program. The GE subsidiaries were selling medical and water purification equipment to the Iraqi government.
The kickbacks were paid from 2000 to 2003 and consisted of cash, computer equipment, medical supplies, and services to the Iraqi Health Ministry or the Oil Ministry, the government said at the time.
In 2011, Johnson & Johnson agreed to pay a $21.4 million penalty to resolve criminal FCPA charges with the Justice Department, and another $48.6 million in disgorgement and prejudgment interest to settle the SEC’s civil charges, in a case alleging improper payments to doctors in Greece by J&J subsidiary DePuy Inc.
Last year, AstraZeneca PLC agreed to pay more than $5 million in penalties after the SEC accused it of violating the books and records and internal controls provisions of the Foreign Corrupt Practices Act in connection with allegedly illegal payments made by subsidiaries in China and Russia to boost drug sales. AstraZeneca settled the enforcement action without admitting or denying the SEC’s findings.
Based on where Congress takes this JCPOA with action and or clarity. the Iranian Supreme leader is turning once again to European leaders as he threatens to perhaps even shred it.
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ANKARA (Reuters) – Iranian Supreme Leader Ayatollah Ali Khamenei said on Wednesday Tehran would stick to its 2015 nuclear accord with world powers as long as the other signatories respected it, but would “shred” the deal if Washington pulled out, state TV reported.
Khamenei spoke five days after U.S. President Donald Trump adopted a harsh new approach to Iran by refusing to certify its compliance with the deal, reached under Trump’s predecessor Barack Obama, and saying he might ultimately terminate it.
“I don’t want to waste my time on answering the rants and whoppers of the brute (U.S.) president,” Khamenei said in a speech to students in Tehran quoted by state television.
“Trump’s stupidity should not distract us from America’s deceitfulness … If the U.S. tears up the deal, we will shred it … Everyone should know that once again America will receive a slap in its mouth and will be defeated by Iranians.”
Trump’s move put Washington at odds with other parties to the accord – Britain, France, Germany, Russia, China and the European Union – who say Washington cannot unilaterally cancel an international accord enshrined by a U.N. resolution.
Khamenei, who has the final say on Iran’s state matters, welcomed European support but said it was not sufficient.
“European states stressed their backing for the deal and condemned Trump … We welcomed this, but it is not enough to ask Trump not to rip up the agreement. Europe needs to stand against practical measures (taken) by America.”
Under the deal, Iran agreed to curb its disputed uranium enrichment program in return for relief from international sanctions that crippled its economy, and U.N. nuclear inspectors have repeatedly certified Tehran’s compliance with the terms.
Trump accuses Iran of supporting terrorism and says the 2015 deal does not do enough to block its path to acquiring nuclear weapons. Iran says it does not seek nuclear arms and in turn blames the growth of militant groups such as Islamic State on the policies of the United States and its regional allies.
In decertifying the nuclear deal last week, Trump gave the U.S. Congress 60 days to decide whether to reimpose economic sanctions on Tehran that were lifted under the pact.
“DO NOT INTERFERE”
In a major shift in U.S. policy, Trump also said Washington will take a more confrontational approach to Iran over its ballistic missile program and its support for extremist groups in the Middle East.
Tehran has repeatedly pledged to continue what it calls a defensive missile capability in defiance of Western criticism. The United States has said Iran’s stance violates the 2015 deal in spirit as missiles could be tipped with nuclear weapons.
Tehran has said it seeks only civilian nuclear energy from its enrichment of uranium, and that the program has nothing to do with missile development efforts.
EU foreign ministers on Monday urged U.S. lawmakers not to reimpose sanctions on Tehran but also discussed Iran’s missile program, which they want to see dismantled.
“They must avoid interfering in our defense program … We do not accept that Europe sings along with America’s bullying and its unreasonable demands,” Khamenei said.
“They (Europeans) ask why does Iran have missiles? Why do you have missiles yourselves? Why do you have nuclear weapons?”
The Trump administration has imposed new unilateral sanctions targeting Iran’s missile activity. It has called on Tehran not to develop missiles capable of delivering nuclear bombs. Iran says it has no such plans.
FBI Announces Results of Operation Cross Country XI
Underage Sex Trafficking Crackdown Leads to Recovery of 84 Minors
The Federal Bureau of Investigation, along with the National Center for Missing & Exploited Children (NCMEC), announced today that 84 minors were recovered and 120 traffickers were arrested as part of Operation Cross Country XI, a nationwide effort focusing on underage human trafficking that ran from October 12-15, 2017.
This is the 11th iteration of the FBI-led Operation Cross Country (OCC), which took place this year in 55 FBI field offices and involved 78 state and local task forces, consisting of hundreds of law enforcement partners. This year’s coordinated operations took place with several international partners, including Canada (Operation Northern Spotlight), the United Kingdom (Aident 8), Thailand, Cambodia, and the Philippines.
“We at the FBI have no greater mission than to protect our nation’s children from harm. Unfortunately, the number of traffickers arrested—and the number of children recovered—reinforces why we need to continue to do this important work,” said FBI Director Christopher Wray. “This operation isn’t just about taking traffickers off the street. It’s about making sure we offer help and a way out to these young victims who find themselves caught in a vicious cycle of abuse.”
Story and Videos
Operation Cross Country XI
The 11th iteration of Operation Cross Country, the FBI’s annual law enforcement action focused on recovering underage victims of prostitution, concluded with the recovery of 84 sexually exploited juveniles.
As part of Operation Cross Country XI, FBI agents and task force officers staged operations in hotels, casinos, and truck stops, as well as on street corners and Internet websites. The youngest victim recovered during this year’s operation was 3 months old, and the average age of victims recovered during the operation was 15 years old. Minors recovered during Cross Country Operations are offered assistance from state protective services and the FBI’s Victim Services Division. Depending on the level of need, victims are offered medical and mental health counseling, as well as a number of other services.
“Child sex trafficking is happening in every community across America, and at the National Center for Missing & Exploited Children, we’re working to combat this problem every day,” said NCMEC President and CEO John Clark. “We’re proud to work with the FBI on Operation Cross Country to help find and recover child victims. We hope OCC generates more awareness about this crisis impacting our nation’s children.”
Operation Cross Country XI is part of the FBI’s Innocence Lost National Initiative, which began in 2003 and has yielded more than 6,500 child identifications and locations. For additional information on Operation Cross Country XI and the Innocence Lost initiative, please visit www.fbi.gov.
Examples of stories from various cities that took part in Operation Cross Country XI:
On October 13, FBI Denver recovered two minor girls—one 3-month-old and one five-year-old. The subject, a friend of the children’s family, offered an undercover officer access to the two children for sexual purposes in exchange for $600. The FBI is working with Child Protective Services to conduct a forensic interview and secure safe placement of the children. The subject was placed under arrest.
Also on October 13, a 16-year old female victim was recovered by FBI El Paso after an undercover agent called an online advertisement for entertainment. Shortly thereafter, the agent met with a 21-year-old female, who offered a fee of $200 to engage in sexual intercourse with her and another female, the 16-year-old victim. Further investigations revealed that a second adult female drove the minor and the 21-year-old to the undercover agent’s location. Both female subjects have been arrested on federal charges.
Note to Editors: B-Roll and interviews associated with Operation Cross Country can be downloaded at www.fbi.gov.
Russian journalists publish massive investigation into St. Petersburg troll factory’s U.S. operations
A day after Dozhd television published an interview with a former member of Russia’s infamous Internet Research Agency, the magazine RBC released a new detailed report on the same organization’s efforts to meddle in U.S. domestic politics. Meduza summarizes RBC’s new report here.
The Internet Research Agency, Russia’s infamous “troll farm,” reportedly devoted up to a third of its entire staff to meddling in U.S. politics during the 2016 presidential election. At the peak of the campaign, as many as 90 people were working for the IRA’s U.S. desk, sources told RBC, revealing that the entire agency employs upwards of 250 people. Salaries for staff working in the U.S. department apparently range from 80,000 to 120,000 rubles ($1,400 to $2,100) per month.
The head of the IRA’s U.S. desk is apparently a man originally from Azerbaijan named Dzheikhun Aslanov (though he denies any involvement with the troll factory).
In August and September this year, Facebook, Instagram, and Twitter suspended 118 communities and accounts run by the St. Petersburg “troll factory,” disabling a network capable of reaching 6 million subscribers. In 2016, at the height of the U.S. presidential campaign, this network reportedly produced content that reached 30 million people each week.
A source also told RBC that the Internet Research Agency spent almost $80,000 over two years, hiring roughly 100 local American activists to stage about 40 rallies in different cities across the United States. The activists were hired over the Internet, communicating in English, without their knowledge that they were accepting money or organizing support from a Russian organization. According to RBC, internal records from the IRA verify its role in these activities.
The main activity in the troll factory’s U.S. desk was to incite racial animosity (playing both sides of the issue), and promoting the secession of Texas, objections to illegal immigration, and gun rights.
RBC estimates that the Internet Research Agency’s total salary expenses approach $1 million per year, with another $200,000 allocated to buying ads on social media and hiring local activists in the U.S.
According to RBC, the IRA still has a U.S. desk, though its staff has apparently dropped to 50 employees.
Note: Formally, the Internet Research Agency ceased to exist roughly two years ago, rebranding itself under different names, but sources say the organization continues to operate as before.
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One part of the factory had a particularly intriguing name and mission: a “Department of Provocations” dedicated to sowing fake news and social divisions in the West, according to internal company documents obtained by CNN.
Prigozhin is one of the Kremlin’s inner circle. His company is believed to be a main backer of the St. Petersburg-based “Internet Research Agency” (IRA), a secretive technology firm, according to US officials and the documents reviewed by CNN. Prigozhin was sanctioned by the US Treasury Department in December of 2016 for providing financial support for Russia’s military occupation of Ukraine. Two of his companies, including his catering business, were also sanctioned by Treasury this year.
CNN has examined scores of documents leaked from Prigozhin’s companies that show further evidence of his links to the troll factory.
One contract provided IRA with ways to monitor social media and a “system of automized promotion in search engines.”
Prigozhin has a colorful past. He spent nine years in prison in the 1980s for fraud and robbery, according to Russian media reports. After his release, he went into the catering business — renovating a boat and opening New Island, one of a half-dozen upscale restaurants he owns in St. Petersburg. Putin turned to him to cater his birthday parties as well as dinners with visiting leaders, including President Bush and Jacques Chirac of France. A headline in The Moscow Times referred to Prigozhin as Putin’s “Personal Chef.”
Prigozhin subsequently won lucrative catering contracts for schools and Russia’s armed forces. He escorted Putin around his new food-processing factory in 2010. By then he was very much a Kremlin insider with a growing commercial empire. More here.
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Trolling NATO? Yuppers
Seventy percent of Russian-language tweets targeting NATO military activities in Eastern Europe are generated by automated Russian trolls, according to a survey done by the military alliance.
“Two in three Twitter users who write in Russian about the NATO presence in Eastern Europe are robotic or ‘bot’ accounts,” the NATO Strategic Communications Centre of Excellence stated in a report made public this week.
The Russian bots sent 84 percent of all Russian language messages. English language tweets against the alliance also were found to be automated, with some 46 percent generated by automated Twitter accounts.
The report criticized the global social media platform for not doing enough to counter Russian bot activities on Twitter. “Our impression is that Twitter in Russian is policed less effectively than it is in English,” the report said.
A Twitter spokesman could not be reached for comment. Colin Crowell, Twitter’s vice president for public policy, stated in a recent post on the company website that “we strictly prohibit the use of bots and other networks of manipulation to undermine the core functionality of our service.” Read more here.
Can the U.S. and allies counter the Chinese program of armed drones or Iran’s?
Beijing has developed an arsenal of unmanned aerial systems ranging from stealthy combat drones to networked-drone swarms. While the U.S. military still remains superior in technology and in number of drones – with the U.S. military reportedly operating some 7,000 and Chinese military operating at least 1,300 – China is quickly gaining traction.
China’s CH-3 and Ch-4 are broadly modeled off variations of the U.S. Predator and Reaper drones. The next iteration, the CH-5, with a 4400-mile flight range over 60 hours – soon to be 12,000 miles over 120 hours – and payload of over one ton of weapons and sensors, including modules designed for electronic warfare and early warning radar to detect enemy aircraft, is the country’s most advanced drone to date. It can even communicate with other combat drones such as earlier CH-3 and CH-4 models to conduct joint missions. Similarly, the smaller CH-805 Stealth Target Drone, which can fly at near supersonic speeds to mimic Chinese fighters on air defense systems, would likely be used operationally as a wingman for manned aircraft.
Notably, however, China must tailor its military doctrine to engage a conventionally superior foe in the United States, who has prioritized expensive and highly advanced drone hardware such as the Global Hawk. For this reason China has sought to foster drones that will enable it an asymmetric capability – an inexpensive attack force operating together and capable of quick yet not decisive attacks. For this reason, Beijing has sought swarms of small, low-tech, possibly 3-D printable drones linked together through high-tech artificial intelligence to create a cognitive hive mind, or swarm.
For example, China’s SW-6 is a small “marsupial” drone with folding wings that can be dropped en mass from cargo chutes or helicopters to conduct persistent surveillance, jam enemy communications, or even relay friendly communications in contested airspace. While the drone is unarmed, it could network with other SW-6s to hunt, swarm, and even dive-bomb enemy targets. This would allow Beijing to project power within its sphere of influence with a lower probability of outright military confrontation – the presence of unarmed drones do not trigger escalation in the same way that fighter jets or aircraft carriers do.
“Should a U.S. warship all of sudden get swarmed by hundreds if not a thousand small unarmed drones, it could have disruptive and distracting effects – impacting electronics and target acquisition for U.S. weapons systems by blinding them,” says Doug Wise, former Deputy Director of the U.S. Defense Intelligence Agency. “By having the nonlethal drone military capability, it also gives the Chinese a non-kinetic way to conduct military operations in the prosecution of the sovereign Chinese seas – expedite control of a disputed island or interdict maritime traffic to control the waters.”
Part of the reason the Chinese military has likely kept its drones near the mainland could be a lack of space-based communications for over-the-horizon flight control where there is not a direct line of sight between the Chinese-based ground control and the drone. But China has already displayed an ability to do conduct such operations in a limited fashion, and as Beijing’s constellation of satellites grows, so will its ability to conduct remote operations in far off places where it has national interests, such as Africa and the Middle East, where drones could be launched from its new military base strategically positioned in Djibouti.
While drones might play a narrow asymmetric roll in Chinese military doctrine at the moment, the prominence of Chinese drone technology in defense trade shows suggests Beijing is also seeking to incorporate the technology into its broader foreign policy. Besides the United States, who has sold armed drones to the British and Italian militaries, China is the only other exporter of lethal drones, providing them to governments with questionable human rights records, such as Pakistan, Iraq, Nigeria, Saudi Arabia, Egypt, the United Arab Emirates, and possibly even the Somali military. China is even building factories for its drones outside of its borders, in places like Saudi Arabia, Pakistan, and Myanmar, essentially bypassing plausible export restrictions all together.
But while China is becoming a true competitor of the U.S. in the provision of key weapons systems such as drones, it is also replacing Russia as the cheaper and less restricted alternative supplier. For example, a Chinese CH-4 drone costs a mere $4 million on the global market, while the MQ-1 Predator and ground station costs a reported $20 million. More here.
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On Oct. 5, 2017, Maghreb Confidentiel — a professional journal covering Africa’s intelligence services — revealed that the Libyan National Army has obtained Iranian-made Mohajer-2 drones.
War Is Boring’s own sources in Libya confirmed the claim. A photo provided by LNA militants shows one of the Iranian UAVs at an unspecified air base.
The Libyan engineer in the picture – his face obscured for security reasons – works with the LNA. But the provenance of the drone is unclear.
There are two sources plausible sources. Iran and Sudan.
The Mohajer-2 is powered by a 25-horsepower WAE-342 twin-cylinder piston engine. Generally unarmed, the Mohajer-2 is optimized for reconnaissance missions. It boasts a 50-kilometer range and a maximum speed of 200 kilometers per hour. Its ceiling around 3,350 meter. Its endurance — 90 minutes or so.
Iran, Sudan and Venezuela all use the Mohajer-2.
The first possibility is that Iran itself supplied the drones to the Tobruk-based Libyan regime, possibly via an intermediary such as Russia, which has also transferred MiG-23s and spare parts to the LNA.
The transfer could have occurred via the air cargo companies that regularly visit LNA bases, including Moldovan firms Sky Prim Air and Oscar Jet.
All that said, some of the LNA’s strongest backers are Sunnia-Arab countries — major opponents of Iran. In accepting drones from Tehran, even indirectly, Tobruk could risk alienating its most important backers.
That leaves Sudan. Khartoum has, in general, supported militants in Misrata and the Libyan Government of National Accord — a rival of the LNA. Sudan has provided ammunition, spare parts and technical maintenance and Sudanese crews for the pro-GNA Libya Dawn Air Force.
But there are indications that Khartoum has occasionally aided the LNA.
The Justice and Equality Movement and the Sudan Liberation Movement are Sudanese Islamist opposition groups, most of whose members are Darfuris. They are part of the Sudanese Revolutionary Front, an alliance of Sudanese factions opposed to the government of Pres. Omar Al Bashir.
Rebels from these two armed groups regularly enter Libyan territory, notably the Kufra region. In February 2016, JEM and SLM fighters attacked the city of Kufra, which was then under the control of the Tobruk-based House of Representative.
Since October 2015, the main armed group in the area has been the Subol Al Salam brigade – a Salafist militia – which is said to be operating in alliance with the LNA’s leader Khalifa Haftar.
In October 2016, this militia reportedly killed 13 JEM militants and destroyed two vehicles near the oasis town of Jaghboub. Despite this, Sudan regularly complains that Libya — that is to say, the Tobruk government — does nothing to prevent the various Darfuri rebel groups from crossing into Libya.
Lacking infrastructure in the south of Libya, the LNA can only use light armed-reconnaissance aircraft – SIAI Marchetti SF.260s – to monitor the Sudanese-Libyan border. One of these Italian-made small planes crashed south of Kufra in May 2017, killing the two crew members.
Khartoum has operated Iranian-made UAVs since 2008, as Africa Confidential reported. That year, the Sudan Liberation Movement-Unity Commanda shot down a Ghods Ababil-3 over Darfur. According to Africa Confidential editor Patrick Smith, the drone was probably controlled by Iranian technicians in Sudan.
The Sudanese air force has used many types of UAVs and lost at least six in combat – most of them shot down by rebels.
Despite past tensions between Tobruk and Khartoum due to Sudan’s support of the regime in Tripoli, an agreement between the Libyans and Sudanese may have facilitated Sudan’s supply of Mohajer-2s to Tobruk and the training of operators, all in order to monitor and prevent the crossing of the Libyan border by JEM and SLM militants.
Of course, it’s also possible that the LNA captured the drones from the GNA when the former seized Al Jufra air base in June 2017. The LNA could have grabbed Mohajer-2s along with the ex-Libya Dawn MiG-23UB fighter that LNA fighters found at the base.