Lifting Sanctions on Iran and Bypassing Iran Front Operations

Not only is the White House well aware of the front operations and hidden nefarious methods of the regime in Tehran, but aggressive sanctions and financial measures were taken by the U.S. Treasury to expose them with cooperation and approval by several intelligence agencies and Congress.

Now lifted…

So for the sake of the JPOA talks and signed agreements, several previous actions by the Obama administration have now been both overlooked and waived. This is key to understand the psychology of Barack Obama’s policy towards the Middle East and his presidential legacy, such that future aggressions and terror around the globe are assured.

 

Note the date as posted on the U.S. Treasury Department website.

Treasury Targets Assets of Iranian Leadership
6/4/2013

Action Identifies Massive Network of Front Companies Hiding Assets on Behalf of the Government of Iran’s Leadership
WASHINGTON –The U.S. Department of the Treasury is taking action today to expose a major network of front companies controlled by Iran’s leadership.  The Execution of Imam Khomeini’s Order (EIKO), through two main subsidiaries, oversees a labyrinth of 37 ostensibly private businesses, many of which are front companies.  The purpose of this network is to generate and control massive, off-the-books investments, shielded from the view of the Iranian people and international regulators.  EIKO and its subsidiaries – one that manages and controls EIKO’s international front companies, and another that manages billions of dollars in investments – work on behalf of the Iranian Government and operate in various sectors of the Iranian economy and around the world, generating billions of dollars in profits for the Iranian regime each year.  EIKO and the 37 companies identified today are subject to sanctions pursuant to Executive Order 13599, which blocks the property of the Government of Iran.
“Even as economic conditions in Iran deteriorate, senior Iranian leaders profit from a shadowy network of off-the-books front companies,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.  “While the Iranian government’s leadership works to hide billions of dollars in corporate profits earned at the expense of the Iranian people, Treasury will continue exposing and acting against the regime’s attempts to evade our sanctions and escape international isolation.”
EIKO has made tens of billions of dollars in profit for the Iranian regime each year through the exploitation of favorable loan rates from Iranian banks and the sale and management of real estate holdings, including selling property donated to EIKO.  EIKO has also confiscated properties in Iran that were owned by Iranians not living in Iran full-time.  In addition to generating revenue for the Iranian leadership, EIKO has been tasked with assisting the Iranian Government’s circumvention of U.S. and international sanctions.  Because of this unique mission, EIKO has received all of the funding it needs to facilitate transactions through its access to the Iranian leadership. The following companies are all part of this elaborate scheme:
Tosee Eqtesad Ayandehsazan Company (TEACO)
In June 2010, Tosee Eqtesad Ayandehsazan Company (TEACO) was created as part of the Iranian strategy to circumvent U.S. and international sanctions.  EIKO uses TEACO as the primary mechanism to transact, manage, and control all of the international companies under EIKO’s control.  To maintain the appearance of being a private company, TEACO is ostensibly owned by private Iranian businessmen and investors; however TEACO’s board members were all chosen by EIKO.  TEACO acts on behalf of EIKO.  As of September 2011, EIKO negotiated business deals using TEACO subsidiaries.  For example, EIKO used an Iranian subsidiary of TEACO to negotiate a deal with a European company to build a factory in Iran.  In these business deals, the TEACO subsidiary directly negotiated with the foreign company.  If the foreign company did not move forward with the deal due to sanctions issues, the TEACO subsidiary would have TEACO take over the negotiations, rather than EIKO, because TEACO was less visibly connected to the Government of Iran.
As of December 2010, EIKO transferred Iranian-owned companies located in Central Europe from the EIKO-controlled Iranian company Rey Investment Company to TEACO.  TEACO planned to use these central European companies to facilitate international transactions in Europe otherwise prohibited by U.S. and international sanctions.  The companies were officially owned by Iranian expatriates with dual Iranian-European citizenship to conceal ties to the Iranian Government, EIKO, TEACO, and Rey Investment Company.
Tadbir Economic Development Company (Tadbir Group)
Tadbir Group, an investment company subordinate to EIKO, manages billions of dollars in investments, including on behalf of Iranian leadership figures.  Tadbir Group is one of the main holding companies belonging to EIKO.  Its subsidiaries include Tadbir Investment Company, Modaber (Tadbir Industrial Holding Company), Tadbir Construction Development Company and Tadbir Energy Development Group.  The Tadbir Group has used its subsidiaries to make significant investments in the Iranian economy, including an investment of over $100 million in Amin Investment Bank, and controls the Pardis Investment Company and Mellat Insurance Company in Iran.
Rey Investment Company
As of late December 2010, Rey Investment Company was worth approximately $40 billion. Rey Investment Company was formerly run by Ayatollah Mohammad Mohammadi Reyshahri, who previously served as the Iranian Minister of Intelligence and Security.  Rey Investment Company collected and invested donations obtained from Iranian Shi’a shrines.  However, amidst allegations of mismanagement and embezzlement of shrine donations from the company, the Iranian Government cut off its funding to the point of nearly bankrupting the company.  In mid-to-late 2010, Reyshahri was removed and control of Rey Investment Company was transferred to EIKO and its director.  EIKO subsequently appointed a new Managing Director of Rey Investment Company.
Reyco GmbH
Reyco was a German subsidiary of Rey Investment Company, although there were no public ties between Reyco and Rey Investment Company, TEACO, or the Iranian Government.  Reyco owned MCS Engineering and MCS International.  Reyco had the appearance of being a purely German company to circumvent sanctions restricting an Iranian Government-controlled entity’s ability to do business in Europe.  Reyco was eventually transferred to the control of TEACO from Rey Investment Company, and TEACO planned to use Reyco to purchase a bank for Iran in Germany.
MCS International GmbH (Mannesman Cylinder Systems)
Reyco subsidiary MCS International is a German company ostensibly owned by German nationals or Iranian expatriates with dual Iranian-European citizenship to conceal its ties to the Iranian Government, EIKO, TEACO, and Rey Investment Company.  MCS International was audited by TEACO in October 2010 and determined to be in poor financial standing.  However, EIKO management rescued MCS International from bankruptcy and insisted on keeping the company open because it viewed MCS International as key to facilitating business in Europe.  EIKO management viewed MCS International as being too important to EIKO’s international plans to allow it to go bankrupt and believed that it would be easier to rescue MCS International from bankruptcy than to create or acquire new foreign companies on behalf of EIKO due to U.S. and international sanctions.  EIKO subsequently ordered that responsibility for MCS International be transferred from EIKO-controlled TEACO to Iranian businessmen, who were sent to oversee the company.  Following this transfer, the two individuals owned the shares for MCS International, but answered directly to EIKO.
MCS Engineering (Efficient Provider Services GmbH)
Reyco and MCS International subsidiary MCS Engineering is a German company ostensibly owned by German nationals or Iranian expatriates with dual Iranian-European citizenship to conceal ties to the Iranian Government, EIKO, TEACO, and Rey Investment Company.  EIKO required that Iranians be used for management positions, preferably dual Iranian-European citizens, who could conceal the relationship between the company and the Iranian Government.
Golden Resources Trading Company L.L.C. (GRTC)
GRTC, a Dubai-based Iranian company, has been controlled by EIKO and used in early 2011 to inject 7.5 million Euros from EIKO into MCS International.  EIKO sent money through GRTC in Dubai for deposit into an account with a bank in Germany.  The Iranian Government has used GRTC to transfer money internationally to circumvent U.S. and international sanctions.  GRTC was responsible for the transfer of funds to Europe and Africa by EIKO, and its subsidiary, the Tadbir Group.  EIKO relied on GRTC to transfer money and secure letters of credit on behalf of Iranian-controlled companies in Europe and South Africa.  As of December 2010, control over GRTC was transferred from Rey Investment Company to TEACO by EIKO.  GRTC has represented a number of Iranian companies with affiliations to the Islamic Revolutionary Guard Corps. (IRGC) and has been used by the IRGC to procure needed equipment and supplies.
Cylinder System Ltd. (Cilinder Sistem DDO) 
Cylinder System Ltd. is a Croatia-based company that has been controlled by EIKO.  In October 2010, TEACO determined that Cylinder System Ltd. was poorly run, and EIKO ordered new management.  Cylinder System Ltd. was subsequently transferred under the control of TEACO from Rey Investment Company.  EIKO was also interested in procuring a bank in Central Europe and considered using Cylinder System Ltd. to facilitate this transaction.
One Vision Investments 5 (Pty) Ltd.
One Vision Investments 5 (Pty) Ltd. is a South Africa-based company that was owned by Rey Investment Company, but was subsequently transferred to TEACO’s control in order to avoid being linked to the Iranian Government.  EIKO managed One Vision Investments 5 (Pty) Ltd. and used the company to transfer funds from Iran internationally and to facilitate financial transactions through South Africa to circumvent U.S. and international sanctions.
One Class Properties (Pty) Ltd.
EIKO planned to use South Africa-based One Class Properties (Pty) Ltd. to purchase a bank and an insurance company.  EIKO managed One Class Properties (Pty) Ltd. through TEACO in order to avoid being linked to the Iranian Government.  The Iranian Government used One Class Properties (Pty) Ltd. to transfer money internationally and to facilitate financial transactions in circumvention of U.S. and international sanctions.  One Vision Investments 5 (Pty) Ltd. owned 49 percent of One Class Properties (Pty) Ltd., while the Government of Iran owned 51 percent.
Treasury is also imposing sanctions on additional companies in Iran that are owned or controlled by the Tadbir Group, Rey Investment Company, or their subsidiaries.  These companies are: Iran & Shargh Company, Iran & Shargh Leasing Company, Tadbir Brokerage Company, Rafsanjan Cement Company, Rishmak Productive & Exports Company, Omid Rey Civil & Construction Company, Behsaz Kashane Tehran Construction Co., Royal Arya Company, Hormuz Oil Refining Company, Ghaeed Bassir Petrochemical Products Company, Persia Oil & Gas Industry Development Co., Pars Oil Co., Commercial Pars Oil Co., Marjan Petrochemical Company, Ghadir Investment Company, Sadaf Petrochemical Assaluyeh Company, Polynar Company, Pars MCS, Arman Pajouh Sabzevaran Mining Company, Oil Industry Investment Company, and Rey Niru Engineering Company.
U.S. persons are generally prohibited from engaging in any transactions with the entities listed today, and any assets those entities may have subject to U.S. jurisdiction are frozen.
Identifying Information
Entity: Amin Investment Bank
AKA: AMINIB
Location: No. 51 Ghobadiyan Street, Valiasr Street, Tehran  1968917173, Iran
Website: http://www.aminib.com
Entity: Behsaz Kashane Tehran Construction Co.
AKA: Behsaz Kashaneh Co.
Location: No. 40, East Street Journal, North Shiraz Street, Sadra Avenue, Tehran, Iran
Website: http://www.behsazco.ir
Entity: Commercial Pars Oil Co.
Location: 9th Floor, No. 346, Mirdamad Avenue, Tehran, Iran
Entity: Cylinder System L.T.D.
AKA: Cilinder Sistem D.O.O.
AKA: Cilinder Sistem D.O.O. Za Proizvodnju I Usluge
Location: Dr. Mile Budaka 1, Slavonski Brod  35000, Croatia
Alt. Location: 1 Mile Budaka, Slavonski Brod  35000, Croatia
Website: http://www.csc-sb.hr
Registration ID: 050038884 (Croatia)
Tax ID No.: 27694384517 (Croatia)
Entity: Execution Of Imam Khomeini’s Order
AKA: EIKO
AKA: SETAD
AKA: Setad Ejraei Emam
AKA: Setad-E Ejraei-E Farman-E Hazrat-E Emam
AKA: Setad-E Farman-Ejraei-Ye Emam
Location: Khaled Stamboli St., Tehran, Iran
Entity: Ghadir Investment Company
Location: 341 West Mirdamad Boulevard, Tehran, Iran
Alt. Location: P.O. Box 19696, Tehran, Iran
Website: http://www.ghadir-invest.com
Entity: Ghaed Bassir Petrochemical Products Company
AKA: Ghaed Bassir
Location: No. 15, Palizvani (7th) Street, Gandhi (South) Avenue, Tehran  1517655711, Iran
Alt. Location: Km 10 of Khomayen Road, Golpayegan, Iran
Website: http://www.gbpc.net
Entity: Golden Resources Trading Company L.L.C.
AKA: GRTC
Location: 9th Floor, Office No. 905, Khalid Al Attar Tower 1, Sheikh Zayed Road, After Crown Plaza Hotel, Al Wasl Area, Dubai, United Arab Emirates
Alt. Location: Postal Box 34489, Dubai, United Arab Emirates
Alt. Location: Postal Box 14358, Dubai, United Arab Emirates
Entity: Hormoz Oil Refining Company
Location: Next To The Current Bandar Abbas Refinery, Bandar Abbas City, Iran
Entity: Iran & Shargh Company
AKA: Iran And East Company
AKA: Iran And Shargh Company
AKA: Iranoshargh Company
AKA: Sherkat-E Iran Va Shargh
Location: 827, North Of Seyedkhandan Bridge, Shariati Street, P.O. Box 13185-1445, Tehran  16616, Iran
Alt. Location: No. 41, Next To 23rd Alley, South Gandi St., Vanak Square, Tehran  15179, Iran
Website: http://www.iranoshargh.com
Entity: Iran & Shargh Leasing Company
AKA: Iran And East Leasing Company
AKA: Iran And Shargh Leasing Company
AKA: Sherkat-E Lizing-E Iran Va Shargh
Location: 1st Floor, No. 33, Shahid Atefi Alley, Opposite Mellat Park, Vali-E-Asr Street, Tehran  1967933759, Iran
Website: http://www.isleasingco.com
Entity: Marjan Petrochemical Company
AKA: Marjan Methanol Company
Location: Ground Floor, No. 39, Meftah/Garmsar West Alley, Shiraz (South) Street, Molla Sadra Avenue, Tehran, Iran
Alt. Location: Post Office Box 19935-561, Tehran, Iran
Entity: MCS Engineering
AKA: Efficient Provider Services Gmbh
Location: Karlstrasse 21, Dinslaken, Nordrhein-Westfalen  46535, Germany
Entity: MCS International Gmbh
AKA: Mannesman Cylinder Systems
AKA: MCS Technologies Gmbh
Location: Karlstrasse 23-25, Dinslaken, Nordrhein-Westfalen  46535, Germany
Website: http://www.mcs-tch.vom
Entity: Mellat Insurance Company
Location: No. 48, Haghani Street, Vanak Square, Before Jahan-Kodak Cross, Tehran  1517973913, Iran
Alt. Location: No. 40, Shahid Haghani Express Way, Vanak Square, Tehran, Iran
Alt. Location: No. 9, Niloofar Street, Sharabyani Avenue, Taavon Boulevard, Shahr-E-Ziba, Tehran, Iran
Alt. Location: 72 Hillview Court, Woking, Surrey  Gu22 7qw, United Kingdom
Alt. Location: No. 697 Saeeidi Alley, Crossroads College, Enghelab St., Tehran, Iran
Website: http://www.mellatinsurance.com
Entity: Modaber
AKA: Modaber (A.K.A. Modaber Investment Company
AKA: Tadbir Industrial Holding Company
Entity: Oil Industry Investment Company
AKA: O.I.I.C.
Location: No. 83, Sepahbod Gharani Street, Tehran, Iran
Website: http://www.oiic-ir.com
Entity: Omid Rey Civil & Construction Company
AKA: Omid Development And Construction
AKA: Omid Rey Civil And Construction Company
AKA: Omid Rey Renovation And Development Co.
Website: http://www.omidrey.com
Entity: One Class Properties (Pty) Ltd.
AKA: One Class Incorporated
Location: Cape Town, South Africa
Entity: One Vision Investments 5 (Pty) Ltd.
AKA: One Vision 5
Location: 3rd Floor, Tygervalley Chambers, Bellville, Cape Town  7530, South Africa
Alt. Location: Canal Walk, P.O. Box 17, Century City, Milnerton  7446, South Africa
Registration ID: 2002/022757/07 (South Africa)
Entity: Pardis Investment Company
AKA: Sherkat-E Sarmayegozari-E Pardis
Location: Unit D4 and C4, 4th Floor, Building 29 Africa, Corner of 25th Street, Africa Boulevard, Tehran, Iran
Entity: Pars MCS
AKA: Pars MCS Co
AKA: Pars MCS Company
Location: 2nd Floor, No. 4, Sasan Dead End, Afriqa Avenue, After Esfandiar, Crossroads, Tehran, Iran
Alt. Location: No. 5 Sasan Alley, Atefi Sharghi St., Afrigha Boulevard, Tehran, Iran
Alt. Location: Oshtorjan Industrial Zone, Zob-E Ahan Highway, Isafahan, Iran
Website: http://www.parsmcs.com
Entity: Pars Oil Co.
AKA: Pars Oil
AKA: Sherkat Naft Pars Sahami Aam
Location: No. 346, Pars Oil Company Building, Modarres Highway, East Mirdamad Boulevard, Tehran  1549944511, Iran
Alt. Location: Postal Box 14155-1473, Tehran  159944511, Iran
Website: http://www.parsoilco.com
Entity: Persia Oil & Gas Industry Development Co.
AKA: Persia Oil And Gas Industry Development Co.
AKA: Tose Sanat-E Naft Va Gas Persia
Location: 7th Floor, No. 346, Mirdamad Avenue, Tehran, Iran
Alt. Location: Ground Floor, No. 14, Saba Street, Africa Boulevard, Tehran, Iran
Website: http://www.pogidc.com
Entity: Polynar Company
Location: Polynar Company, No. 58, St. 14, Qanbarzadeh Avenue, Resalat Highway, Tehran, Iran
Website: http://www.polynar.com
Entity: Rey Investment Company
Location: 2nd And 3rd Floors, No. 14, Saba Boulevard, After Esfandiar Crossroad, Africa Boulevard, Tehran  1918973657, Iran
Website: http://www.rey-co.com
Entity: Rey Niru Engineering Company
AKA: Rey Niroo Engineering Company
Website: http://www.reyniroo.com
Entity: Reyco Gmbh
AKA: Reyco Gmbh Germany
Location: Karlstrasse 19, Dinslaken, Nordrhein-Westfalen  46535, Germany
Entity: Rishmak Productive & Exports Company
AKA: Rishmak Company
AKA: Rishmak Export And Manufacturing P.J.S.
AKA: Rishmak Production And Export Company
AKA: Rishmak Productive And Exports Company
AKA: Sherkat-E Tolid Va Saderat-E Rishmak
Location: Rishmak Cross Rd., 3rd Km. Of Amir Kabir Road, Shiraz  71365, Iran
Entity: Royal Arya Co.
AKA: Aria Royal Construction Company
Location: Iran
Entity: Sadaf Petrochemical Assaluyeh Company
AKA: Sadaf Asaluyeh Co.
AKA: Sadaf Chemical Asaluyeh Company
AKA: Sadaf Petrochemical Assaluyeh Investment Service
Location: Assaluyeh, South Pars Special Economy/Energy Zone, Iran
Entity: Tadbir Brokerage Company
AKA: Sherkat-E Kargozari-E Tadbirgaran-E Farda
AKA: Tadbirgaran Farda Brokerage Company
AKA: Tadbirgaran-E Farda Brokerage Company
AKA: Tadbirgarane Farda Mercantile Exchange Co.
Location: Unit C2, 2nd Floor, Building No. 29, Corner Of 25th Street, After Jahan Koudak, Cross Road Africa Street, Tehran  15179, Iran
Website: http://www.tadbirbroker.com
Entity: Tadbir Construction Development Company
AKA: Goruh-E Tose-E Sakhteman-E Tadbir
AKA: Tadbir Building Expansion Group
AKA: Tadbir Housing Development Group
Location: Block 1, Mehr Passage, 4th Street, Iran Zamin Boulevard,  Shahrak Qods, Tehran, Iran
Entity: Tadbir Economic Development Group
AKA: Tadbir Group
Location: 16 Avenue Bucharest, Tehran, Iran
Entity: Tadbir Energy Development Group Co.
Location: 6th Floor, Mirdamad Avenue, No. 346, Tehran, Iran
Website: http://www.tadbirenergy.com
Entity: Tadbir Investment Company
Location: Tehran, Iran
Entity: Tosee Eqtesad Ayandehsazan Company
AKA: Teaco
AKA: Tosee Eghtesad Ayandehsazan Company
Location: 39 Gandhi Avenue, Tehran  1517883115, Iran
Entity: Zarin Rafsanjan Cement Company
AKA: Rafsanjan Cement Company
AKA: Zarrin Rafsanjan Cement Company
Location: 2nd Floor, No. 67, North Sindokht Street, West Dr. Fatemi Avenue, Tehran  1411953943, Iran
Website: http://www.zarrincement.com
To see a chart of Imam Khomeini’s international financial network, click this link

AQAP New Threat Against America

An al-Qaeda operative freed in a prison assault in Yemen has exploited chaos caused by fighting in the country to take a touristic tour of government buildings and posted photos of the visit online.

Khalid Batarfi, a high-ranking member of the jihadi group’s powerful Yemeni branch al-Qaeda in the Arabian Peninsula (AQAP), is seen posing with a smile inside the local provincial governor palace in the southern port of al-Mukalla, in pictures circulated on social media.

Al Qaeda branch calls for new attacks against United States

(CNN)Al Qaeda’s branch in Yemen, which officials have called the terror group’s most dangerous affiliate, has issued two threatening new communiques praising recent lone-wolf style attacks against the West and calling for more of them.

“We urge you to strike America in its own home and beyond,” says a letter attributed to Ibrahim al-Asiri, the master bomb-maker with al Qaeda in the Arabian Peninsula.

The letter, according to a translation by SITE Intelligence Group, states, “America is first.”

CNN is unable to independently verify that Asiri himself wrote it, but the letter has drawn the attention of terror trackers such as MEMRI, Flashpoint and SITE.

A U.S. counterterrorism official described the letter as “consistent with rhetoric the new leader stated upon taking over al Qaeda’s most active affiliate that is known to threaten Western interests.”

A big bounty

Asiri has a $5 million bounty on his head, and analysts say if he did write the letter, he may have been putting himself at risk.

“The concern for Asiri would be that somehow the message would be traceable back to him — whether by courier, or some digital stamp inside of the message,” said Katherine Zimmerman of the American Enterprise Institute. “We have seen U.S. drone strikes kill a series of top al Qaeda leaders in Yemen over the past few months.”

But if the letter is genuine, it would indicate that Asiri, who rarely makes public statements, is still alive.

Intelligence officials say Asiri was a key player in the 2009 Christmas Day bomb attempt in which a passenger from Africa almost managed to detonate a bomb aboard a Detroit-bound plane that he’d hidden in his underwear. Asiri was also behind the placing of bombs in printer cartridges aboard planes headed for the United States that were intercepted before they reached their targets.

He even designed a bomb to be carried on the body of his own brother, Abdullah al-Asiri, in attempt to kill Saudi Arabia’s counterterrorism chief in 2009. The bomb killed his brother, but the Saudi minister survived.

A dangerous foe

“He’s without question the most dangerous terrorist operative that the United States faces today,” said CNN terrorism analyst Paul Cruickshank. “Intelligence suggests that he is developing a new generation of explosive devices including a new generation of underwear and shoe bomb devices.”

Zimmerman says Asiri is believed to have taught his skills to a cadre of bomb-makers.

“He has trained a series of individuals who are able to do what he does, which is bring imagination and innovation to an explosive device that could make it through U.S. or Western security,” she said.

The video embedding code has been disabled but can be played here.

Another senior AQAP leader, Khalid Batarfi, is featured in a second threatening video.

He praises the July attack in Chattanooga, Tennessee, in which a gunman killed five American servicemen at a military installation, as “a blessed Jihadi operation.” And he also praises two gunmen who tried to mount an attack in Garland, Texas, in May for their “sacrifice and heroism.”

“Blood for blood,” Batarfi says in a speech posted online.

He then encourages further lone-wolf attacks against America and the West. “To the warriors of Lone Jihad: may Allah bless and guide your efforts,” he says.

A U.S. intelligence official said this video is believed to be genuine.

“Batarfi has become a main AQAP media figure since his escape from a Yemeni prison this spring,” the official said.

While a number of AQAP leaders have been targeted by strikes this year, the fighting in Yemen between warring factions has deprived the United States of a partner on the ground to work with on tracking and targeting militants.

James Clapper, the director of national intelligence, recently told a conference in Aspen, Colorado, that “in terms of proximate threat, I would view … AQAP — even though they’re kind of consumed right now with what’s going on in Yemen with the Houthis — as probably our most concerning al Qaeda element in terms of threat to the homeland.”

Inside the Iran Deal, Killers Go Free

Breitbart: The Iranian regime has filed a complaint with the International Atomic Energy Agency, alleging that the United States has already broken the Iran deal.

The complaint cites remarks by White House press secretary Josh Earnest about the possible use of military force in the long run, and the use of nuclear inspections to gain intelligence about Iran’s nuclear facilities in the meantime. These are frequent talking points that the White House uses to reassure legislators like Rep. Adam Schiff (D-CA).
Iran calls them a “material breach” of the nuclear deal itself.

According to the text of the Iran deal itself (page 20), any of the parties can treat “significant nonperformance” of the agreement “as grounds
to cease performing its commitments under this JCPOA.” More here.

Then, the Washington Times notes that Senator Barbara Boxer (D-CA) has come out early in full support of the Iran deal. One wonders if she has read the whole document much less the annex agreements.

The real terrifying part of the agreement

Forgotten flaw in Iran nuclear deal: It lets killers go free

Reuters: President Barack Obama has in good faith negotiated an agreement with Iran that would end a broad range of economic sanctions on Iran, in return for Iran’s promise to scale back its efforts to build a nuclear bomb. I believe that Congress’s support of the agreement would be a very serious mistake.

I find persuasive the arguments of many analysts that the proposal fails because it lifts sanctions before Iran has over time proven that it is committed to abandoning its nuclear weapons program.

Perhaps even more importantly, I oppose the agreement because it does not require Iran to stop its funding of Hezbollah and other extremist hoodlums around the world.

But more fundamentally, I oppose the proposal because, while addressing strategic issues, the deal ignores a moral issue, among the most profound of our time.

Put simply: Iran sponsors terrorism. I am convinced I could prove that proposition in a court of law, and indeed some Americans have done so. Survivors of terrorist attacks have sued the Iranian government in American courts, and won significant judgments.

But the Iranian government has refused to pay those judgments, and the proposed agreement does nothing to challenge that intransigence. In fact, the agreement would release up to 150 billion dollars of frozen assets to Iran, without requiring that a dime go to paying off the survivors of Iran-sponsored terror.

I understand that sometimes strategic interests require us to negotiate with enemies; and I do not underestimate the imminence of Iran’s development of a nuclear bomb capability. And as a veteran of war, I favor peace, when peaceful means can be found to deter aggression.

But the world has within its grasp those peaceful means, in international sanctions, and those sanctions should be strengthened, not abandoned, so long as Iran sponsors terror against civilian populations and foments unrest among its neighbors. Some of those individuals and entities who will be removed from the sanctions list are associated with terrorism in addition to nuclear proliferation.

I have had the good fortune to have lived through a good deal of history, enough to know that history most often favors principled actions over short-term pragmatism.

One of the most significant regimens of international sanctions ever imposed was the Comprehensive Anti-Apartheid Act of 1986. In response to a humanitarian crisis in South Africa, that law imposed economic sanctions against South Africa, sanctions would not be lifted until South Africa met specified conditions, granting basic human rights to its own people.

When President Ronald Reagan vetoed that bill, Nobel Prize winner Bishop Desmond Tutu predicted that the veto would be “judged harshly by history.” Congress overrode the President’s veto, kept the sanctions in place – and five years later, minority white rule ended.

Historians still debate the role that those sanctions played in ending apartheid. But I don’t think anyone can doubt that Congress would be “judged harshly by history” had it given up, or had it agreed to end sanctions in return for a mere temporary suspension of apartheid rule. Congress met the most important moral issue of its time the way moral issues must be met – with principle.

And so must Congress act today in the face of Iranian terror and aggression.

The proposed agreement contains a very long list of individuals and institutions – previously identified as supporting attacks against the West or Iran’s nuclear bomb project – whose names are on international sanctions lists but who, should the agreement be approved, will soon be off. The roll call should make anyone shudder.

For example, among those who would be freed from European sanctions is Ahmad Vahidi, the former commander of Iran’s Quds Force of the Islamic Republic’s Revolutionary Guard and a suspect in the 1994 bombing of a Jewish Community Center in Buenos Aires. Eighty-five people died in that bombing, and hundreds were injured, making it the deadliest bombing in the history of Argentina.

No one has ever been held accountable for those murdered, a denial of justice that led human rights leaders, among them Pope Francis, to sign a petition in protest. Justice moved slowly, but in 2007, the Argentine judicial authorities identified Ahmad Vahidi as one of those responsible for the bombing, INTERPOL listed him as wanted for “aggravated murder.” Incredibly, part of the deal with Iran would remove him from Europe’s sanctions list, before he ever faces the bar of justice.

Peruse the agreement some more, and you will find the name of Javad Al Yasin, the head of something called the “Research Centre for Explosion and Impact.” Al Yasin was on the sanctions list for his work in developing Iran’s nuclear bomb. Not only does the Iranian agreement take Al Yasin off the sanctions list, it even removes sanctions from the Research Centre for Explosion and Impact.

International sanctions against Iran were effective because they created an economic incentive for Iran to come to the bargaining table. But they were effective as well because they prevented funds from reaching named militants and organizations sponsoring attacks against the West. It would be a mistake of historic proportions to remove the sanctions without evidence that Iran has ceased its sponsorship of such attacks, and without a permanent end to their ambitions to build a nuclear weapon.

And so, our negotiators must insist on an agreement in which Tehran agrees to permanent, not temporary, limitations on its abilities to prepare weapons-grade fissionable materials and ballistic missiles.

The sanctions must remain in place until Tehran renounces terrorism, stops funding Hezbollah, and honors judgments awarding compensation to those whose loved ones have been killed in past attacks.

Can we get such a deal? In urging the nation to support the end of sanctions, the president has said that the deal he presented to Congress is the best one that could be negotiated. Others disagree. But whoever is right, one thing is certain: no agreement is worth supporting if it undermines the most basic principles that must govern relations among civilized nations.

Shortly before his death, President John Kennedy delivered a speech in which he told Americans of the peace he hoped to bring to the world. He called it “genuine peace … not merely peace for Americans but peace for all men and women, not merely peace in our time, but peace in all time.”

The proposed Iran agreement does just the opposite: faced with an international crisis, it just kicks the can down the road. It provides for temporary restrictions on nuclear aggression, while largely ignoring the broader threats of militant attacks and proxy war.

It asks the next generation to solve a problem that this generation refused to address squarely.

We owe it to our progeny to leave a record not of avoidance but of principled action. Congress should reject the proposed agreement.

 

Stimulus Money Fraud in Maryland

TheHill.com:

House Majority Leader Steny Hoyer (D-Md.) wants the White House to look at unspent money from the 2009 stimulus package instead of asking Congress for a new fiscal package.

President Barack Obama on Saturday night wrote to congressional leaders urging them to pass legislation extending tax cuts and add new spending to prevent “hundreds of thousands” teacher layoffs, among other cuts. Obama said that without such measures the economy could “slide backwards.”

Hoyer said on ABC’s “This Week” on Sunday that there is “spending fatigue” across the country and that he is encouraging the administration to look at last year’s $787 billion stimulus package to see if some money can be redirected.

“I have asked the White House to look at the package we already passed,” Hoyer said. “I personally believe if we have dollars not yet expended in the recovery act we could apply to this immediate need.”

***

Has one wondering now, does it not?

IG Finds Extensive Abuse of Stimulus Energy Efficiency Funds

Maryland contractors’ directors used grant funds to renovate home, donate to child’s school, hike executive pay

 

FreeBeacon: Officials at a pair of government contractors routinely overbilled the Energy Department and used government funds for personal expenses such as home renovation and donations to an executive’s child’s school, according to federal watchdogs.

Those were just a few of the numerous improper expenditures of grant funds under a DOE weatherization program funded by federal taxpayers and administered by the Maryland Department of Housing and Community Development (DHCD).

“Weak fiscal controls over subgrantees, combined with deficiencies in subgrantee accounting systems, have led to the Program funding improper payments to local agencies rather than furthering the Program’s goals of installing energy efficiency retrofits for low-income families,” DOE’s inspector general said in a report released on Tuesday.

The report accuses the contractors, C&O Conservation and Maryland Energy Conservation (MEC), of “unethical accounting practices” and warns, “in the absence of immediate improvements in financial controls, the risk of fraud, waste, and abuse is increased.”

The two contractors together received more than $15 million in taxpayer funds through the weatherization program. In addition to illicit financial practices, the report raises concerns about the two contractors’ “less-than-arm’s-length business arrangements.”

According to the report, M&O routinely overbilled DHCD for services related to DOE weatherization grants partly funded by the 2009 stimulus bill, which set aside $5 billion for weatherization grants to state agencies.

The IG examined just 80 of C&O’s 1,135 federally funded weatherization projects. It identified 57 examples of the company charging excessive fees for its services or inflating the hourly rates for which it billed the DHCD.

The report also identified a host of unallowable billings under the program, including maintenance of a C&O director’s personal vehicle, a $4,000 donation to a director’s child’s school, and “about $8,000 in bad debt expenses related to reimbursement claims that C&O had written off and then charged to the Program.”

“C&O used Program funds for the personal benefit of inside directors,” the IG wrote. “Of great concern, we found that construction on a C&O inside director’s home was funded in part with Program funds.”

C&O and MEC employees took part in insulation and drywall installation “training,” they told the IG. That training entailed renovating the home of a C&O director and charging related expenses to the weatherization program.

The relationship between the two contractors is also of concern, the IG found. “C&O and MEC’s boards of directors included employees and multiple related family members,” the report found.

“Given this lack of independence on the boards, family members and executive employees had the ability to substantially influence the actions of their respective organizations, such as approving their own compensation or conducting business with inside directors and related parties.”

Due in part to those apparent conflicts, excessive compensation was a particular issue of concern for the contractors. One C&O director who also served as an “executive employee” received a 79 percent raise in 2012, which the IG deemed “unreasonable under OMB cost principles.”

It also questioned compensation for an MEC director’s spouse, who received “an hourly rate more than 50 percent higher than that of the nearest counterpart in the organization” while performing administrative work from home.

MEC declined to comment on the report. C&O did not return a request for comment by press time.

UK Feeling Same U.S. Pain on Immigration

LONDON (AFP) – 

The disruption to freight between Britain and mainland Europe caused by strikes and illegal immigration is starting to hurt British businesses, from luxury English car manufacturers to Scottish seafood exporters.

Industrial action and delays caused by migrants massed at the French port of Calais are taking a toll on the other side of the Channel, with thousands of trucks queueing up at England’s southeastern tip for ferry and freight shuttle rail services.

“While clearly hampering holidaymakers, the disruption at Calais also has an economic impact as exporters are being delayed getting their goods to market,” said Katja Hall, deputy director-general of the Confederation of British Industry, the nation’s biggest employers’ body.

The disruption is costing the British economy £250 million ($390 million, 355 million euros) a day in lost trade, according to the Freight Transport Association trade body.

UK funds 100 extra Channel tunnel guards as migrant standoff continues

Philip Hammond claims government has ‘got a grip’ on the Calais migrant crisis, with UK Border Force officials now stationed in Eurotunnel control room

Britain is to fund an extra 100 border guards at the Channel tunnel terminal on the French side, the foreign secretary Philip Hammond has announced, as he said the government has “got a grip” on the Calais migrant crisis.

As Eurotunnel reported that there were a further 700 attempts on Sunday night to board Channel tunnel trains, Hammond said that officials from the UK Border Force would start working inside the Eurotunnel control room in Coquelles.

Hammond made the announcement after chairing a 90-minute meeting of the government’s emergency Cobra committee in Whitehall.

David Cameron was absent from the meeting, after embarking on the first stage of his summer holiday in the UK. The prime minister will return to London later this week before resuming his holiday.

Hammond said: “I think we have got a grip on the crisis. We saw a peak last week, since when the number of illegal migrants has tailed off. We have taken a number of measures in collaboration with the French authorities and Eurotunnel which are already having an effect and over the next day or two I would expect to have an even greater effect.”

The foreign secretary said that ministers and officials had agreed at the Cobra meeting that Britain would fund an extra 100 guards, taking the total number to 300, at the terminal at Coquelles. The guards will be recruited by the French authorities but will be funded by the UK.

Hammond said: “I’m pleased to say we have seen a much improved level of cooperation and collaboration with Eurotunnel over the past 48 hours, with trains being cancelled where appropriate and in some cases trains being reversed back into Coquelles where there is a danger of illegal migrants being on board.

“From this evening, UK Border Force and French police will have a presence in the Eurotunnel control room at Coquelles and that will greatly enhance the practical collaborative working at the site. I also understand this evening the company has accepted our offer of additional guards and we expect up to 100 additional guards to be deployed into the terminal area.”

Hammond announced that the strengthening of the perimeter fence around the entrance to the Channel tunnel in France will be completed by Friday. Ministers hope that the pressure on hauliers will be relieved by opening up military bases to take lorries delayed by the disruption in the tunnel.

He said: “On this side of the Channel we are in the final stages of procuring some additional facilities to support the (Operation) Stack lorry-holding operations so that when it is switched on again later this week the disruption on the motorways will be less.”

Hammond also announced that Britain and France would redouble their efforts for a “more robust approach” by the European Union to return migrants to their countries of origin. The two countries will also attempt to discourage migrants from travelling to Europe in the first place, by making clear that neither has “streets paved with gold” – reiterating the claim made by home secretary Theresa May over the weekend.

On Monday ministers announced that the requirement for landlords to check on the immigration status of potential tenants is to be toughened and rolled out across the country – even before an official evaluation of the West Midlands pilot scheme has been completed.

It has emerged that the pilot scheme, which started in December, has already led to British citizens without passports being turned away as tenants.

James Brokenshire, the immigration minister, told landlords on 7 July that the six-month pilot had raised concerns about some British citizens with limited documentation who appeared to find it harder to get access to rented accommodation.