Category Archives: Middle East

Protests in Beirut over Possible Stolen Millions?

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238 people injured in Beirut protests » Breaking News ...

It is beginning to sound like some oligarch corruption out of Ukraine but read on.

Salamé became Governor of Lebanon’s central bank, on August 1, 1993. He was subsequently reappointed for four consecutive terms in 1999, 2005, 2011 and 2017. Salamé chairs the BDL Central Council, the Higher Banking Commission, the AML/CFT Special Investigation Commission and the Capital Markets Authority.

He is a member of the board of governors at the International Monetary Fund (IMF) and at the Arab Monetary Fund (AMF).

Le Commerce du Levant magazine économique libanais ...

In 2012, Salamé chaired the annual meetings of the International Monetary Fund (IMF) and the World Bank Group in Tokyo. So he is well connected and maybe a Middle East swamper,,,,but could something else be revealed?

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(Reuters) – Offshore companies linked to Lebanon’s central bank governor own assets worth nearly $100 million, a media group said in a report, as his role in Lebanon’s economic turmoil is under intense scrutiny.

The companies tied to Riad Salameh invested in real estate in Britain, Germany and Belgium over the past decade according to a report by a collective of European news outlets called the Organised Crime and Corruption Reporting Project (OCCRP), a nonprofit media organisation, and its Lebanese partner, Daraj.com.

The report by the Sarajevo-based OCCRP does not allege any wrongdoing by Salameh and Reuters has not reviewed any of the documents on which the report is based.

Responding to the report, Salemeh told Reuters he had declared during a TV interview in April his net worth prior to becoming a governor in 1993 and it was $23 million dollars.

“I have shown the supporting documents as a proof. This to eliminate doubts on the origin of my net worth and that it was prior to holding office,” he said.

He said he had previously stated that he asked professionals and trustees to manage his net worth. “The origin of my net worth is clear, this is the important matter,” he said.

Salameh, previously seen as a guarantor of financial stability in the country, has become a focus of anger for street protesters since Lebanon’s financial system collapsed earlier this year under the weight of one of the world’s biggest public debt burdens.

The report into his personal wealth comes at a sensitive time as Lebanon grapples with the aftermath of an enormous chemicals explosion that devastated the capital Beirut, fuelling public anger with the country’s leadership.

The OCCRP report also comes after central bank accounts seen by Reuters last month revealed that Lebanon’s central bank governor inflated the institution’s assets by over $6 billion in 2018, showing the extent of financial engineering used to help prop up the Lebanese economy.

The governor told Reuters last month that the central bank accounting was in line with policies approved by the board.

A Lebanese judge last month ordered a protective freeze on some assets held by the governor after ruling in favour of a complaint that he had allegedly undermined the financial standing of the state.

By the end of 2018, Salameh’s assets were worth more than $94 million, the report said, citing balance sheets of Luxembourg companies controlled by the governor.

Salameh said his declaration on his net worth demonstrated he was not trying to escape public scrutiny and was the proof he has “nothing to hide.” (Reporting by Davide Barbuscia and Laila Bassam; Editing by Tom Perry and Jon Boyle)

2 Deadly Explosions Rock Beirut

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President Trump along with officials at the Pentagon are calling this an attack.

Primer: Tensions in Lebanon are high for a number of reasons, one being that Hezbollah faces a United Nations tribunal verdict on Friday in relation to the 2005 assassination of former Prime Minister Rafic Hariri. The head of Lebanon’s domestic security service has ridiculed the notion that fireworks were involved. He told reporters that the incident is a result of highly explosive materials being stored in a port warehouse. Maj. Gen. Abbas Ibrahim refused to give further comment pending the outcome of the investigation. It should be noted here that while Ibrahim has good links to Western intelligence and counterterrorism units, his central interest rests in maintaining Lebanese political stability in avoidance of another civil war.

This is a hyper-relevant concern in the context of very significant political tensions over Lebanon’s growing economic crisis and an associated increase of pressure on the Lebanese Hezbollah. Identifying the explosives as the cause, while saying they had been stored over a period of time, allows Ibrahim to put Hezbollah on notice without directly confronting the group. But why those explosives would be stored in a highly traveled population center and not on a military base is unclear.

AFP/ Beirut: Two huge explosion rocked the Lebanese capital Beirut on Tuesday, wounding dozens of people, shaking buildings and sending huge plumes of smoke billowing into the sky.

Lebanese media carried images of people trapped under rubble, some bloodied, after the massive explosions, the cause of which was not immediately known.

A security source confirmed that two explosions shook the port area of the city, Lebanon’s largest urban area, leaving dozens wounded.

An AFP correspondent at the scene said every shop in the Hamra commercial district had sustained damage, with entire shopfronts destroyed, windows shattered and many cars wrecked.

 

Injured people were walking in the street, while outside the Clemenceau Medical Centre, dozens of wounded people, many covered in blood, were rushing to be admitted to the centre including children.

Destroyed cars had been abandoned in the street with their airbags inflated.

A huge cloud of black smoke was engulfing the entire port area, the AFP correspondent said.

The loud blasts in Beirut’s port area were felt across the city and beyond and some districts lost electricity.

“Buildings are shaking,” tweeted one resident, while another wrote: “An enormous, deafening explosion just engulfed Beirut. Heard it from miles away.”

Online footage from a Lebanese newspaper office showed blown out windows, scattered furniture and demolished interior panelling.

The explosions came at a time when Lebanon is suffering its worst economic crisis in decades, which has left nearly half of the population in poverty.

Lebanon’s economy has collapsed in recent months, with the local currency plummeting against the dollar, businesses closing en masse and poverty soaring at the same alarming rate as unemployment.

The explosions also come as Lebanon awaits the verdict on Friday on the 2005 murder of former Lebanese premier Rafic Hariri, killed in a huge truck bomb attack.

Four alleged members of the Shiite Muslim fundamentalist group Hezbollah are on trial in absentia at the court in the Netherlands over the huge Beirut suicide bombing that killed Sunni billionaire Hariri and 21 other people.

A woman in the city centre told AFP: “It felt like an earthquake … I felt it was bigger than the explosion in the assassination of Rafic Hariri in 2005”.

Italian Police Seize $1 Billion of ISIS Amphetamines

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The Guardia di Finanza said that markings on the drugs were consistent with those used by Islamic State (IS). Though the amphetamine has been linked to IS in the past, some experts doubted that IS had the capacity to produce drugs in such quantities, and stated that Syrian pro-regime entities were more likely responsible.

Police just made history's biggest drug seizure: 15 tons ...

IN: Police in Italy have announced the seizure of the largest shipment of amphetamines in counter-narcotics history, containing drugs believed to have been manufactured by the Islamic State in Syria. The drugs shipment was intercepted at the port of Salerno, located south of Naples in southwestern Italy.

 

Italian police announced on Wednesday that it had made “the largest seizure of amphetamines in the world”, both in terms of quantity and street value. The latter is estimated at approximately $1 billion. Drug traffickers are rarely known to transport such large volumes of drugs in a single shipment, due to the risk of capture by the authorities. However, the lack of supply in Europe due to the coronavirus pandemic has prompted suppliers to take unusual risks, according to experts.

The amphetamines —approximately 84 million tablets— were found hidden inside three containers filled with paper cylinders. More pills had been placed inside the hollow parts of agricultural machinery products, according to police. The confiscated tablets are marked with the logo for the drug Captagon, which is better known by its genetic name, Fenethylline. Captagon was a popular drug in the Middle East in the 1990s, and today amphetamines produced by the Islamic State bear its logo, according to the United States Drug Enforcement Administration.

The drug is regularly given to Islamic State volunteers prior to battles and terrorist attacks, in order to help reduce their inhibitions, including susceptibility to fear, and to prevent them from feeling physical pain. Security agencies in the Middle East refer to the substance as “the jihad drug”. It is particularly prevalent in Syria, which has become the global leader in the production of illicit amphetamines in the past decade.

Italian police said the shipment was most likely intended for distribution by “a consortium of criminal groups”, who would then traffic the substance to illicit markets across Europe. It would be unthinkable for a single distributor to be able to afford a $1 billion single purchase, according to officials. The largest buyer among these distributors was probably the Camorra —the organized crime syndicate based in the region of Naples. The Camorra has international links through which it can channel the illicit drugs in much larger volumes than other crime syndicates, according to experts.

Asked about the clues that led to the seizure of the amphetamines, a spokesman for the Italian police said the force knew the when the shipment was coming in, due to “ongoing investigations we have with the Camorra”. He added, “we intercepted phone calls and members, so we knew what to expect”.

Pensacola NAS Shooter Tied to AQAP

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Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, May 18, 2020

Attorney General William P. Barr and FBI Director Christopher Wray Announce Significant Developments in the Investigation of the Naval Air Station Pensacola Shooting

Saudi gunman and at least 3 victims reported dead at NAS ... photo

Today, Attorney General William P. Barr and FBI Director Christopher Wray announced significant developments in the FBI’s investigation of the December 6, 2019 shooting at Naval Air Station Pensacola that killed three U.S. sailors and severely wounded eight other Americans.  On January 13, 2020, Attorney General Barr announced that the shooting was an act of terrorism and publicly asked Apple to help the FBI access the locked contents of two iPhones belonging to the deceased terrorist Mohammed Saeed Alshamrani.  The company declined to do so.

Attorney General Barr announced that the FBI recently succeeded in unlocking the phones of Alshamrani, who had attempted to destroy them while launching his attack.  The phones contained important, previously-unknown information that definitively established Alshamrani’s significant ties to Al Qaeda in the Arabian Peninsula (AQAP), not only before the attack, but before he even arrived in the United States.  The FBI now has a clearer understanding of Alshamrani’s associations and activities in the years, months, and days leading up to the attack.

“Thanks to the great work of the FBI – and no thanks to Apple – we were able to unlock Alshamrani’s phones,” said Attorney General Barr.  “The trove of information found on these phones has proven to be invaluable to this ongoing investigation and critical to the security of the American people.  However, if not for our FBI’s ingenuity, some luck, and hours upon hours of time and resources, this information would have remained undiscovered.  The bottom line: our national security cannot remain in the hands of big corporations who put dollars over lawful access and public safety.  The time has come for a legislative solution.”

“I could not be prouder of the relentless dedication of the men and women at the FBI who worked for months under difficult conditions to access these devices,” said Director Wray.  “Their skill and persistence, and the sustained investigative efforts by FBI Jacksonville, the FBI’s Counterterrorism Division, and our many other federal, state, and local partners, have been nothing short of extraordinary in this case.  As we continue to seek answers around the December 6th terrorist attack that killed three American service members and wounded others, I want their families, and all Americans, to know that protecting the United States from those who seek to do us harm remains the FBI’s foremost priority.  Our work against the threat of terrorism never rests.”

Investigators sought and received court authorization to search the contents of Alshamrani’s iPhones within one day of the December 6, 2019 terrorist attack.  Unable to unlock the phones because of their security features, and having exhausted all readily available options, the FBI approached Apple for its assistance in early January 2020.  The company declined to assist.  FBI technical experts succeeded in accessing the phones’ contents over four months after the attack, revealing highly-significant evidence, including:

  • Alshamrani and his AQAP associates communicated using end-to-end encrypted apps, with warrant-proof encryption, deliberately in order to evade law enforcement.
  • Alshamrani’s preparations for terror began years ago.  He had been radicalized by 2015, and having connected and associated with AQAP operatives, joined the Royal Saudi Air Force in order to carry out a “special operation.”
  • In the months before the December 6, 2019 attack, while in the United States, Alshamrani had specific conversations with overseas AQAP associates about plans and tactics.  In fact, he was communicating with AQAP right up until the attack, and conferred with his associates until the night before he undertook the murders.

The evidence derived from Alshamrani’s unlocked phones has already proven useful in protecting the American people.  In particular, a counterterrorism operation targeting AQAP operative Abdullah al-Maliki, one of Alshamrani’s overseas associates, was recently conducted in Yemen.

Exhibit 1

Exhibit 2

Exhibit 3

Response by DoD Secretary Esper:

Today, the Department of Justice and the Federal Bureau of Investigation announced additional findings about the shooting on Dec. 6, 2019 at Naval Air Station Pensacola. This was a tragic day for our military and our deepest condolences are still with the friends and families of Ensign Joshua Watson, Airman Mohammed Haitham, Airman Cameron Walters, and with the eight others wounded in this terrorist attack.

The new information provided by Director Wray and Attorney General Barr underscores the threats to our nation posed by al-Qa’ida and its affiliates and highlights the necessity of the security measures we take every day to protect the American people, our interests and our friends – as well as those that defend our nation.

”The Department of Defense is incredibly grateful for the diligent work by the FBI team investigating this horrific attack that took the lives of three American patriots,” said Secretary of Defense Dr. Mark. Esper. ”Based on the FBI findings, and in addition to already executed protective measures, the Department will take further prudent and effective measures to safeguard our people.”

In response to this terrorist attack, the Department of Defense took immediate action, ordering a stop to all International Military Student operational training at U.S. installations and directing a review of all vetting and security procedures. In January Secretary Esper went to Pensacola and met with Navy leadership, and with flight training students and first responders to hear first-hand the accounts of those on the scene. Within two weeks of the tragedy, the Secretary approved an extensive list of findings and recommendations and directed immediate implementation across all the military Services. These include additional measures for background checks and new physical security procedures, specifically:

  • New restrictions on IMS possession and use of firearms and ammunition.
  • New control measures for limiting IMS access to military installations and U.S. government facilities.
  • New standards for training and education on detecting and reporting insider threats.
  • Establishment of new vetting procedures that include capabilities for continuous monitoring of IMS while enrolled in U.S.-based training programs.
  • Acknowledgement of willingness to abide by these standards, committing to full compliance with all U.S. laws on-and off-duty.

We continue to work with the FBI as they uncover more information pertaining to the terrorist, his links with al-Qa’ida, and the methods he used to conceal this from us. At the same time, we continue to review our procedures to identify any additional vetting and security measures we can adopt.

Despite this tragic event, our military partnerships and the international military student program remain strong and are a vital component of our National Defense. Security cooperation directly contributes to U.S. national security and foreign policy objectives by helping allies and partners improve their defense capabilities and enhance their ability to participate in missions alongside U.S. forces. We will continue to work closely with them to counter the threats of international terrorism and protect our freedom.

Lebanon is Tail-Spinning into Default

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BEIRUT (Reuters) – Lebanon announced it cannot meet its debt payments and halted a March 9 bond payment of $1.2 billion on Saturday, setting the heavily indebted state on course for a sovereign default as it grapples with a major financial crisis.

In a televised address to the nation, Prime Minister Hassan Diab said foreign currency reserves had hit a “critical and dangerous” level and were needed to meet basic needs. He called for “fair” negotiations with lenders to restructure the debt.

Lebanon to default on debt payments amid financial crisis ... source

The default will mark a new phase in a crisis that has hammered the economy since October, slicing around 40% off the value of the local currency, denying savers free access to their deposits and fuelling unemployment and unrest.

The crisis is seen as the biggest risk to Lebanon’s stability since the end of the 1975-90 civil war.

“How can we pay creditors abroad when the Lebanese cannot get their money from their bank accounts?” Diab said. “Our debt has become greater than Lebanon can bear, and greater than the ability of the Lebanese to meet interest payments.”

The long-brewing crisis came to a head last year as capital inflows slowed and protests erupted over decades of state corruption and bad governance.

“We are paying the price for the mistakes of the past years. Must we bequeath them to our children?” Diab said.

The Lebanese had “lived a dream that was a delusion as though things were just fine, while Lebanon was drowning in more debt”, he said.

There has been no sign of a bailout from foreign states that aided Lebanon in the past. Western governments insist Beirut first enact long-delayed reforms to fight waste and corruption.

Diab was appointed in January with backing from the Iran-backed group Hezbollah and its allies. Former prime minister Saad al-Hariri, a traditional ally of the West and Gulf Arab states, stayed out of the government.

NOT PRODUCTIVE ENOUGH

Diab, a little-known academic when he became prime minister, said corruption had drained the state while also criticizing economic policies adopted since the war. Lebanon was importing 80% of its needs and was not productive enough, he said.

Lebanon: near the Central Bank, new demonstrations against ...

He took aim at a banking system that drew capital to the country with dollar interest rates five to 10 times greater than those offered abroad.

“We do not need a banking sector four times the size of our economy. We will have to come up with a plan to restructure the banking sector,” he said.

The gross public debt has reached around 170% of gross domestic product, meaning Lebanon is close to being the world’s most heavily indebted state, he added.

Citing the World Bank, Diab said more than 40% of people could soon find themselves under the poverty line. Lebanon has a population of around 6 million, including about 1 million Syrian refugees.

Lebanon has a total of some $31 billion in dollar bonds that sources told Reuters on Friday the government would seek to restructure.

A set of Lebanon’s bond holders are to step up efforts to form a creditor group in the coming days, one of the members of the group said.

“From what we understand the government wants to be reasonable and so do most creditors. They understand the country is in a difficult situation,” the member said.

Lebanon’s public debt is worth about $89.5 billion, with around 37% of that in foreign currency.

Lebanon has sought technical but not financial assistance from the IMF, though many analysts believe that the only way for the country to secure financial support would be through an IMF program.

“Watch now if bondholders can block any deal,” said Nick Eisinger, principal, fixed income emerging markets at Vanguard, which holds some Lebanese debt but has been underweight in the market for a long time.

“It’s unclear how quick they can go down the restructuring route or get a deal because they need reforms first or at the same time,” he said.

Banks began restricting cash withdrawals and transfers abroad four months ago. Diab indicated the controls could soon be standardized, saying a draft law would “regulate the relationship between the banks and their customers, for it to become more fair and just”.