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A report parsing through what is currently known to be included in the Mossack Fonseca data leak about Russian corporations found that Podesta’s eponymous Podesta Group lobbying firm took on Sberbank as a client only a month ago. John Podesta’s brother Anthony, who bundles campaign donations for Clinton, is listed as the lobbyist for the Sberbank account.
According to the WashingtonFree Beacon report, the Podesta Group’s lobbying registration form lists three other entities affiliated with Sberbank: “Cayman Islands-based Troika Dialog Group Limited, Cyprus-based SBGB Cyprus Limited, and Luxembourg-based SB International.”
Both Sberbank and the Troika Dialog Group are linked with companies used by members of Russian president Vladimir Putin’s inner circle to shift government funds into personal offshore accounts, according to allegations leveled by the International Consortium of Investigative Journalists (ICIJ), the group managing the Panama Papers story – for example, leaked documents from Panamanian law firm Mossack Fonseca that showed Troika Dialog secretly signing away interest in a Russian truck manufacturer to an offshore company called Avto Holdings, owned by close Putin friend Sergei Roldugin.
This, and many similar transactions, are characterized by the Panama Papers journalists as examples of how “offshore companies affiliated with Putin’s friend had privileged rights to control large stakes in strategic Russian enterprises, to receive dividends, and to buy these stakes for laughable sums.” A must read of the rest here from Breitbart.
FreeBeacon: A major Clinton Foundation donor company that has been granted millions in U.S. federal loans has been linked to a corruption probe in Pakistan, according to reports.
The Abraaj Group, a Middle Eastern investment fund that contributed between $500,000 and $1 million to the Clinton Foundation, has not been charged in the case, but its name has surfaced in Pakistani media reports. Authorities in Sindh province have accused a prominent government official of providing illegal favors to K-Electric, a power company owned and managed by the Abraaj Group since 2009.
Former Pakistani oil minister Dr. Asim Hussain was arrested last year amid allegations that he helped harbor terrorists in a string of hospitals he owned and doled out illegal contracts to companies, including K-Electric. Both Hussain and K-Electric have denied the allegations.
The investigation has not impacted the U.S. government’s ongoing partnership with the Abraaj Group, which dates back to at least 2012. That year, the Overseas Private Investment Corporation—a federal agency that dispenses corporate loans under the guidance of the U.S. State Department—selected the Abraaj Group to manage its $150 million Middle East investment fund.
Two weeks later, the Abraaj Group co-sponsored the Clinton Global Initiative’s annual meeting.
Last October, the Overseas Private Investment Corporation again pledged up to $250 million to help fund the Abraaj Group’s K-Electric operations. The announcement came less than a month after the Sindh Rangers, a Pakistani law enforcement agency, reportedly issued a 12-page report accusing Hussain of passing illegal favors to K-Electric.
According to the Sindh Rangers, Hussain was “involved in various acts of corruption, corrupt practices and misuse of authority as public office holder.” The paramilitary group claimed he also embezzled money that was “subsequently used in terror financing and funding target killers.”
The Rangers’ report claimed that “Dr Asim [Hussain] gave favours and illegal gas connections to KESC [K-Electric], which was owned by Abraaj Group with links to [former Pakistani president] Asif Zardari and [Zardari’s sister] Faryal Talpur to the tune of Rs100 billion,” according to a summary by the International News.
A spokesperson for the Overseas Private Investment Corporation told the Washington Free Beacon that its board approved the project with the Abraaj Group and K-Electric before news of the investigation emerged.
“We are aware of the situation and are following up with the borrower,” OPIC press secretary Sandra Niedzwiecki said.
A spokesperson for the Abraaj Group referred the Free Beacon to an Oct. 2, 2015 statement on the K-Electric website, which strongly denied the charges.
“K-Electric has categorically refuted and denied the false and defamatory allegations that have been referenced in a few publications regarding undue favors taken by the company and/or the provision of illegal gas connections and supply,” the statement said. “K-Electric is a publicly listed company and operates in strict compliance with national laws and regulations and adheres to the highest standards of ethics and corporate governance.”
A spokesperson for the Abraaj Group said K-Electric “has not been contacted by any government or judicial agencies on this matter.”
Dr. Asim Hussain has pleaded not guilty to separate charges of aiding terrorists and corruption.
Hussain appeared in Karachi’s Accountability Court on Thursday, where he was expected to be indicted, according to reports. However, jail authorities brought him to the courthouse over an hour late, and the hearing was rescheduled for a later date.
Last month, Pakistan’s anti-corruption agency, the National Accountability Bureau, filed a corruption reference against Hussain. “In this case, the accused persons were alleged to have illegally fraudulently and with the connivance of officials of OGDCL [Oil and Gas Development Company, Limited] and SSGCL [Sui Southern Gas Company, Limited] awarded gas contracts,” the bureau’s executive board wrote in a March 2 statement.
K-Electric is not the only part of the Abraaj Group entangled in a corruption case. The CEO of PetroTiger, a Colombian petroleum company in the Abraaj Group’s portfolio, pleaded guilty to bribing a foreign official last June. He was sentenced to probation. PetroTiger reportedly cooperated in the case and the company was not charged.
In a recent interview by Bret Baier of three previous Secretaries of Defense a significant response by all three was that the White House does not listen to the military commanders at the Pentagon but rather interferes directly with selected field commanders for political military decisions bypassing the Pentagon completely.
We are seeing for sure this is an accurate description and Susan Rice has been given the responsibility of being the quasi commander in chief. She even went so far as to impose a gag order when it came to the matter of China.
NavyTimes: The U.S. military’s top commander in the Pacific is arguing behind closed doors for a more confrontational approach to counter and reverse China’s strategic gains in the South China Sea, appeals that have met resistance from the White House at nearly every turn.
Adm. Harry Harris is proposing a muscular U.S. response to China’s island-building that may include launching aircraft and conducting military operations within 12 miles of these man-made islands, as part of an effort to stop what he has called the “Great Wall of Sand” before it extends within 140 miles from the Philippines’ capital, sources say.
Harris and his U.S. Pacific Command have been waging a persistent campaign in public and in private over the past several months to raise the profile of China’s land grab, accusing China outright in February of militarizing the South China Sea.
But the Obama administration, with just nine months left in office, is looking to work with China on a host of other issues from nuclear non-proliferation to an ambitious trade agenda, experts say, and would prefer not to rock the South China Sea boat, even going so far as to muzzle Harris and other military leaders in the run-up to a security summit.
“They want to get out of office with a minimum of fuss and a maximum of cooperation with China,” said Jerry Hendrix, a retired Navy captain and defense strategy analyst with the Center for a New American Security.
The White House has sought to tamp down on rhetoric from Harris and other military leaders, who are warning that China is consolidating its gains to solidify sovereignty claims to most of the South China Sea.
National Security Adviser Susan Rice imposed a gag order on military leaders over the disputed South China Sea in the weeks running up to the last week’s high-level nuclear summit, according to two defense officials who asked for anonymity to discuss policy deliberations. China’s president, Xi Jinping, attended the summit, held in Washington, and met privately with President Obama.
The order was part of the notes from a March 18 National Security Council meeting and included a request from Rice to avoid public comments on China’s recent actions in the South China Sea, said a defense official familiar with the meeting readout.
In issuing the gag order, Rice intended to give Presidents Obama and Xi Jinping “maximum political maneuvering space” during their one-on-one meeting during the global Nuclear Summit held March 31 through April 1, the official said.
“Sometimes it’s OK to talk about the facts and point out what China is doing, and other times it’s not,” the official familiar with the memo said. “Meanwhile, the Chinese have been absolutely consistent in their messaging.”
The NSC dictum has had a “chilling effect” within the Pentagon that discouraged leaders from talking publicly about the South China Sea at all, even beyond the presidential summit, according to a second defense official familiar with operational planning. Push-back from the NSC has become normal in cases where it thinks leaders have crossed the line into baiting the Chinese into hard-line positions, sources said.
Military leaders interpreted this as an order to stay silent on China’s assertive moves to control most of the South China Sea, said both defense officials, prompting concern that the paltry U.S. response may embolden the Chinese and worry U.S. allies in the region, like Japan and the Philippines, who feel bullied.
China, which has been constructing islands and airstrips atop reefs and rocky outcroppings in the Spratly Islands, sees the South China Sea as Chinese territory. President Xi told Obama during their meeting at the nuclear summit that China would not accept any behavior in the disguise of freedom of navigation that violates its sovereignty, according to a Reuters report. The two world leaders did agree to work together on nuclear and cyber security issues.
Experts say administrations often direct military leaders to tone down their rhetoric ahead of major talks, but the current directive comes at a difficult juncture. U.S. leaders are struggling to find an effective approach to stopping the island-building without triggering a confrontation.
The NSC frequently takes top-down control to send a coherent message, said Bryan Clark a former senior aide to Adm. Jon Greenert, the recently retired chief of naval operations. While serving as Greenert’s aide, Clark said the NSC regularly vetted the former CNO’s statements on China and the South China Sea.
Critics say the administration’s wait-and-see approach to the South China Sea has failed, with the island-dredging continuing in full force.
“The White House’s aversion to risk has resulted in an indecisive policy that has failed to deter China’s pursuit of maritime hegemony while confusing and alarming our regional allies and partners,” said Sen. John McCain, R-Ariz., chairman of the Senate Armed Services Committee, in a statement to Navy Times. “China’s increasingly coercive challenge to the rules-based international order must be met with a determined response that demonstrates America’s resolve and reassures the region of our commitment.”
When presented with the findings of this article, Harris declined to comment through a spokesperson. A spokesman for the chief of naval operations had no comment when asked about Harris’ proposals and whether the CNO was supporting them.
An administration official said the Navy’s operations in the South China Sea are routine and that the administration often seeks to coordinate its message.
“While we’re not going to characterize the results of deliberative meetings, it’s no secret that we coordinate messaging across the inter-agency-on issues related to China as well as every other priority under the sun,” the official said.
The gag order has had at least one intended effect. The amphibious assault ship Boxer and the dock landing ship Harpers Ferry, both carrying the 13th Marine Expeditionary Unit, steamed through the South China Sea in late March to little fanfare.
‘The status quo has changed’
Meanwhile evidence is mounting that China aims to build another island atop the Scarborough Shoal, an atoll just 140 miles off the coast of the Philippines’ capital of Manila and well within the Philippines’ 200-mile economic exclusion zone, that would extend China’s claims. Chinese missile batteries and air-search radars there would put U.S. forces in the Philippines at risk in a crisis.
Harris and PACOM officials have been lobbying the National Security Council, Capitol Hill and Pentagon leaders to send a clear message that they won’t tolerate continued bullying of neighbors. Part of the approach includes more aggressive, frequent and close patrols of China’s artificial islands, Navy Times has learned.
“When it comes to the South China Sea, I think the largest military concern for [U.S.] Pacific Command is what operational situation will be left to the next commander or the commander after that,” said a Senate staffer familiar with the issues in the South China Sea. “The status quo is clearly being changed. Militarization at Scarborough Shoal would give [China’s People’s Liberation Army-Navy] the ability to hold Subic Bay, Manila Bay, and the Luzon Strait at risk with coastal defense cruise missiles or track aviation assets moving in or out of the northern Philippines.”
The administration is negotiating rotational force presence in the Philippines that would put the U.S. in a position to counter China’s moves in the region but the focus on the big picture isn’t changing the China’s gains in the here and now, the staffer said.
“Force posture agreements and presence operations are important, but the administration has yet to develop a deterrence package that actually convinced Beijing that going further on some of these strategic-level issues like Scarborough … is not worth the costs.”
Stepped-up patrols and of the South China Sea like the one conducted by the carrier John C. Stennis and her escorts in early March are part of the PACOM response to China, but actual freedom of navigation patrols in close proximity to China’s islands must be authorized by the White House.
The patrols to date have been confusing, critics argue, because they have been conducted under the right of innocent passage. For example, the destroyer Lassen’s October transit within 12 nautical miles of Chinese man-made islands in the disputed Spratly Islands chain, was conducted in accordance with innocent passage rights. Some officials saw that as tacit acknowledgment that China did in fact own the islands and were entitled to a 12-mile territorial sea around them.
During innocent passage, warships are not supposed to fly aircraft, light off anti-air systems or shoot guns — just proceed expeditiously from point “A” to point “B.” All those activities are fair game in international waters.
The lack of a more aggressive response has only encouraged continued expansion, critics say, including the new Scarborough Shoal project, which China seized from the Philippines in 2012.
The Lassen was the first U.S. warship to pass within 12 miles of China’s man-made islands in three years and was followed by the destroyer Curtis Wilbur’s patrol of the disputed Paracel Islands in January. But if the goal of those patrols was to stop China from constructing man-made islands, it has clearly failed, which was noted last month by the U.S. military’s top officer.
“In the South China Sea, Chinese activity is destabilizing and could pose a threat to commercial trade routes,” Marine Gen. Joe Dunford, the chairman of the Joint Chiefs, said at a March 29 speech at the Center for Strategic and International Studies. “And while our exercise of freedom of navigation provides some assurance to our allies and partners, it hasn’t stopped the Chinese from developing military capabilities in the South China Sea, to include on territories where there is a contested claim of sovereignty.”
Administration officials say they’ve been tough on China’s claims, supporting military patrols by U.S. Air Force bombers and Navy ships, as well as sending high-tech military assets to the region, including two more destroyers and the sophisticated X-band AN/TPY-2 missile defense radar system. The U.S. is also negotiating rotational presence for U.S. troops on bases in the Philippines, right on China’s doorstep.
“The idea that we are somehow inconsistent or that we are giving China a free pass just isn’t supported by the facts,” said a U.S. official who spoke on background to discuss internal deliberations.
‘Irreversible’ gains
Harris wants to double down on the close island patrols but conduct them on the assertion they are in international water, sources who spoke to Navy Times said.
Clark, now an analyst with the Center for Strategic and Budgetary Assessments who has followed Harris’s strategy, said he thinks Harris is lobbying for more assertive freedom of navigation patrols that include military operations such as helicopter flights and signals intelligence within 12 miles of Chinese-claimed features. Such patrols, Clark said, would make clear the Navy does not acknowledge Chinese claims and that the surrounding waters are international.
“He wants to do real [freedom of navigation operations],” Clark said. “He wants to drive through an area and do military operations.”
Harris is not the only Navy expert raising alarms. Capt. Sean Liedman, a naval flight officer serving as a fellow at the Council on Foreign Relations, called for the U.S. to take a hard line.
“Failing to prevent the destruction and Chinese occupation of Scarborough Shoal would generate further irreversible environmental damage in the South China Sea — and more importantly, further irreversible damage to the principles of international law,” Liedman wrote in a late March blog post. “It would further consolidate the Chinese annexation and occupation of the maritime features in the South China Sea, which would be essentially irreversible in any scenario short of a major regional conflict.”
Liedman said the Navy should consider taking military actions like disabling Chinese dredging boats to steps to impair the land-reclamation effort.
Failing to stop China’s expansion in the South China Sea into territory also claimed by its neighbors is only heightening the chance of getting into an armed confrontation, said Hendrix, the retired captain.
“The Obama administration has tended to take the least confrontational path but in doing so they created an environment where it’s going to take a major shock to reestablish the international norms in the South China Sea,” he said. “Ironically, they’ve made a situation where conflict is more instead of less likely.”
Reuters: The European Union executive is considering whether to make U.S. and Canadian citizens apply for visas before traveling to the bloc in a move that could raise tensions as Brussels negotiates a free trade pact with Washington.
The European Commission will debate the issue, prompted by U.S. and Canadian refusals to waive their visa requirements for holders of some EU member states’ passports, at a meeting next Tuesday. That is just over a week before U.S. President Barack Obama arrives in Europe on a visit that will include discussions on trade.
“A political debate and decision is obviously needed on such an important issue. But there is a real risk that the EU would move towards visas for the two,” an EU source said.
Washington and Ottawa both demand visas before traveling for Romanians and Bulgarians, whose states joined the EU in 2007. The United States also excludes Croatians, Cypriots and Poles from a visa waiver scheme offered to other EU citizens.
Europe’s Schengen area, comprising 26 states, most of which are in the 28-member EU, has a common visa system. Poland is a member of Schengen, and the other four states are due to join.
Trade negotiations between Brussels and Washington are at a crucial point since both sides believe their transatlantic agreement, known as TTIP, stands a better chance of passing before President Barack Obama leaves the White House in January.
Obama is due to visit Britain before meeting German Chancellor Angela Merkel at a trade fair in Hanover on April 24.
DHS: The Visa Waiver Program (VWP), administered by the Department of Homeland Security (DHS) in consultation with the State Department, permits citizens of 38 countries[1] to travel to the United States for business or tourism for stays of up to 90 days without a visa. In return, those 38 countries must permit U.S. citizens and nationals to travel to their countries for a similar length of time without a visa for business or tourism purposes. Since its inception in 1986, the VWP has evolved into a comprehensive security partnership with many of America’s closest allies. The VWP utilizes a risk-based, multi-layered approach to detect and prevent terrorists, serious criminals, and other mala fide actors from traveling to the United States. This approach incorporates regular, national-level risk assessments concerning the impact of each program country’s participation in the VWP on U.S. national security and law enforcement interests. It also includes comprehensive vetting of individual VWP travelers prior to their departure for the United States, upon arrival at U.S. ports of entry, and during any subsequent air travel within the United States.
A strong and vibrant economy is essential to our national security. The United States welcomed approximately 20 million VWP travelers in FY 2014 who, according to the Department of Commerce, spent approximately $84 billion on goods and services. VWP travelers injected nearly $231 million a day into local economies across the country.
Initial and Continuing Designation Requirements
The eligibility requirements for a country’s designation in the VWP are defined in Section 217 of the Immigration and Nationality Act as amended by the Secure Travel and Counterterrorism Partnership Act of 2007. Pursuant to existing statute, the Secretary of Homeland Security, in consultation with the Secretary of State, may designate into the VWP a country that:
Has an annual nonimmigrant visitor visa (i.e., B visa) refusal rate of less than three percent, or a lower average percentage over the previous two fiscal years;
Accepts the repatriation of its citizens, former citizens, and nationals ordered removed from the United States within three weeks of the final order of removal;
Enters into an agreement to report lost and stolen passport information to the United States via INTERPOL or other means designated by the Secretary;
Enters into an agreement with the United States to share terrorism and serious criminal information;
Issues electronic, machine-readable passports with biometric identifiers;
Undergoes a DHS-led evaluation of the effects of the country’s VWP designation on the security, law enforcement, and immigration enforcement interests of the United States; and
Undergoes, in conjunction with the DHS-led evaluation, an independent intelligence assessment produced by the DHS Office of Intelligence and Analysis (on behalf of the Director of National Intelligence).
Jeffrey/CNS: Does the president of the United States have the power to unilaterally tell millions of individuals who are violating federal law that he will not enforce that law against them now, that they may continue to violate that law in the future and that he will take action that makes them eligible for federal benefit programs for which they are not currently eligible due to their unlawful status?
Through Solicitor General Donald Verrilli, President Barack Obama is telling the Supreme Court exactly this right now.
The solicitor general calls what Obama is doing “prosecutorial discretion.”
He argues that under this particular type of “prosecutorial discretion,” the executive can make millions of people in this country illegally eligible for Social Security, disability and Medicare.
On April 18, the Supreme Court will hear arguments in the case. Entitled United States v. Texas, it pits President Obama against not only the Lone Star State, but also a majority of the states, which have joined in the litigation against the administration.
At issue is the policy the administration calls Deferred Action for Parents of Americans and Lawful Permanent Residents, which would allow aliens in this country illegally who are parents of citizens or lawful permanent residents to stay in the United States.
“The Executive Branch unilaterally created a program — known as DAPA — that contravenes Congress’s complex statutory framework for determining when an alien may lawfully enter, remain in, and work in the country,” the attorney general and solicitor general of Texas explained in a brief submitted to the Supreme Court on behalf of the states seeking to block the policy.
“DAPA would deem over four million unlawfully present aliens as ‘lawfully present’ and eligible for work authorization,” says the Texas brief. “And ‘lawful presence’ is an immigration classification established by Congress that is necessary for valuable benefits, such as Medicare and Social Security.”
In the administration’s brief, the solicitor general admits that the president’s DAPA program does not convert people illegally in the United States into legal immigrants. He further asserts that the administration at any time can decide to go ahead and remove these aliens from the country.
“Deferred action does not confer lawful immigration status or provide any defense to removal,” he says. “An alien with deferred action remains removable at any time and DHS has absolute discretion to revoke deferred action unilaterally, without notice or process.”
Despite this, he argues, the administration can authorize aliens here illegally on “deferred action” to legally work in the United States.
“Without the ability to work lawfully, individuals with deferred action would have no way to lawfully make ends meet while present here,” says the administration’s brief.
Nonetheless, the solicitor general stresses that “deferred action” does not make an illegal immigrant eligible for federal welfare.
“In general,” he says, “only ‘qualified’ aliens are eligible to participate in federal public benefit programs, and deferred action does not make an alien ‘qualified.’… Aliens with deferred action thus cannot receive food stamps, Supplemental Security Income, temporary aid for needy families, and many other federal benefits.”
But, he says, aliens here illegally with deferred action will be eligible for “earned-benefit programs.”
“A non-qualified alien is not categorically barred, however, from participating in certain federal earned-benefit programs associated with lawfully working in the United States — the Social Security retirement and disability, Medicare, and railroad-worker programs — so long as the alien is ‘lawfully present in the United States as determined by the (Secretary),'” says the solicitor general.
The “secretary” here is the secretary of Homeland Security.
“An alien with deferred action is considered ‘lawfully present’ for these purposes,” says the solicitor general.
So, as explained to the Supreme Court by Obama’s solicitor general, when DHS grants an alien here illegally “deferred action” under the president’s DAPA policy, that alien is not given “lawful immigration status” and can be removed from the country “at any time.” However, according to the solicitor general, that alien will be authorized to work in the United States and will be “considered ‘lawfully present'” for purposes of being eligible for “the Social Security retirement and disability, Medicare, and railroad-worker programs.”
The U.S. Constitution imposes this straightforward mandate on the president: “(H)e shall take care that the laws be faithfully executed.”
When the Supreme Court agreed in January to hear U.S. v. Texas, it made a telling request. It asked the parties to argue whether Obama’s DAPA policy “violates the Take Care Clause of the Constitution.”
The Obama administration has taken care of just one thing here: It has constructed a convoluted — and unconvincing argument — it hopes will provide the activists on the Supreme Court with a cover story to explain why this president need not faithfully execute the nation’s immigration laws.
In the report released Wednesday, the GAO outlines how 121 different government programs doled out a record amount of improper payments, according to 22 different agencies.
The report further notes that only three programs accounted for three-fourths of the improper payments:
“While these 121 programs span various agencies across the federal government, improper payment estimates for Medicare, Medicaid, and the Earned Income Tax Credit accounted for more than 76 percent of the governmentwide estimate…”
According to the GAO, $32.3 billion, or 23.6 percent, of the improper payments were from other government programs.
This is just the latest report of improper payments, which remains an increasing problem. Since 2003, the GAO has reported the cumulative increases, which have risen more than $100 billion in the past 13 years.
The GAO wants to curb the massive streak of improper payments. Their report included specific suggestions:
“[The GAO has] identified various strategies and recommendations that could help to reduce improper payments in these key programs, including requiring states to conduct audits of payments to and by Medicaid managed care organizations.”
The report also claims that efforts are under way to address the various problems, but there is still a long way to go.
“Until the federal government has implemented effective processes to determine the full extent to which improper payments occur and has taken appropriate actions across entities and programs to effectively reduce improper payments, it will not have reasonable assurance that the use of federal funds is adequately safeguarded,” the report noted.
A report was produced in 2014 where millions were paid to federal employees to stay home and not work.
Examiner: The federal government has shelled out more than $700 million in paid leave to more than 57,000 employees who were home from work for time periods stretching from one month to three years, a Government Accountability Office report has found.
In a 62-page report published Monday, the GAO analyzed why so many federal employees were home and getting paid for such long periods of time and they discovered a variety of reasons.
In many cases, employees were home awaiting the outcome of investigations into alleged misconduct and criminal actions. Some racked up paid leave for “physical fitness activities,” and others were away from work seeking professional development. Employees also took paid leave for “recuperation” from overseas work.
Hundreds of federal employees remained at home, collecting a paycheck, for years.
If you are so inclined to go deeper, how about this well researched summary noting the collusion and blurred lines of federal employees working on official time versus union time. Thanks to Capital Research for this one.
Summary:Few Americans are aware that, through their tax dollars, they finance labor unions through a practice known as “official time” or “release time.” The cost to taxpayers is skyrocketing, while—thanks to Obama administration stonewalling—accountability is declining. Fortunately, reformers are working to rein in this costly, corrupt practice.