Category Archives: Trump Administration

Do the Russians have the Voting Machines Source Codes?

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On February 28th, the Senate asks what NSA and Cyber Command are doing about Russian election interference. Admiral Rogers’s answer, in brief, is that his organizations lack the authorities to do much (that he can openly discuss, that is).

US senator grills CEO over the myth of the hacker-proof voting machine
Nation’s biggest voting machine maker reportedly relies on remote-access software.

WASHINGTON (Reuters) – Two Democratic senators on Wednesday asked major vendors of U.S. voting equipment whether they have allowed Russian entities to scrutinize their software, saying the practice could allow Moscow to hack into American elections infrastructure.

The letter from Senators Amy Klobuchar and Jeanne Shaheen followed a series of Reuters reports saying that several major global technology providers have allowed Russian authorities to hunt for vulnerabilities in software deeply embedded across the U.S. government.

The senators requested that the three largest election equipment vendors – Election Systems & Software, Dominion Voting Systems and Hart Intercivic – answer whether they have shared source code, or inner workings, or other sensitive data about their technology with any Russian entity.

They also asked whether any software on those companies’ products had been shared with Russia and for the vendors to explain what steps they have taken to improve the security of those products against cyber threats to the election.

The vendors could not immediately be reached for comment. It was not immediately clear whether any of the vendors had made sales in Russia, where votes are submitted via written ballots and usually counted by hand.

“According to voting machine testing and certification from the Election Assistance Commission, most voting machines contain software from firms which were alleged to have shared their source code with Russian entities,” the senators wrote. “We are deeply concerned that such reviews may have presented an opportunity for Russian intelligence agents looking to attack or hack the United States’ elections infrastructure.”

U.S. voters in November will go to the polls in midterm elections, which American intelligence officials have warned could be targeted by Russia or others seeking to disrupt the process.

There is intense scrutiny of the security of U.S. election systems after a 2016 presidential race in which Russia interfered, according to American intelligence agencies, to try to help Donald Trump win with presidency. Trump in the past has been publicly skeptical about Russian election meddling, and Russia has denied the allegations.

Twenty-one states experienced probing of their systems by Russian hackers during the 2016 election, according to U.S. officials.

Though a small number of networks were compromised, voting machines were not directly affected and there remains no evidence any vote was altered, according to U.S. officials and security experts.

Related reading:

Top intel official says US hasn’t deterred Russian meddling (Fifth Domain) “I believe that President (Vladimir) Putin has clearly come to the conclusion that there’s little price to pay and that therefore, ‘I can continue this activity,‘” Adm. Mike Rogers, director of both the U.S. Cyber Command and the National Security Agency, told Congress.

Senators: Cyber Command should disrupt Russian influence campaigns (Fifth Domain) Senators pressed Cyber Command on how they can use their national mission force to combat Russian cyber intrusions.

Rogers: CyberCom lacks authority, resources to defend all of cyberspace (FCW) The outgoing NSA and U.S. Cyber Command chief told lawmakers CyberCom is not sitting on its hands when it comes to potential Russian cyber interference, but it lacks the authority to do more absent additional presidential direction.

NSA: Trump’s Lukewarm Response on Russia Will Embolden Putin (Infosecurity Magazine) NSA: Trump’s Lukewarm Response on Russia Will Embolden Putin. Expect more election interference, Cyber Command boss warns

Decoding NSA director Mike Rogers’ comments on countering Russian cyberattacks (Washington Examiner) It’s not as simple as ‘I’m not authorized to do anything.’

*** Footnotes:

Electronic Systems and Software:

1. In 2014, ES&S claimed that “in the past decade alone,” it had installed more than 260,000 voting systems, more than 15,000 electronic poll books, provided services to more than 75,000 elections. The company has installed statewide voting systems in Alabama, Arkansas, Georgia, Idaho, Iowa, Maine, Maryland, Minnesota, Mississippi, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, and West Virginia. ES&S claims a U.S. market share of more than 60 percent in customer voting system installations.

The company maintains 10 facilities in the United States, two field offices in Canada (Pickering, Ontario; and Vancouver, British Columbia) and a warehouse in Jackson, Mississippi.

2. Dominion Voting Systems is a global provider of end-to-end election tabulation solutions and services. The company’s international headquarters are in Toronto, Canada, and its U.S. headquarters are in Denver, Colorado. Dominion Voting also maintains a number of additional offices and facilities in the U.S. and Europe.

Dominion’s technology is currently used in 33 U.S. states, including more than 2,000 customer jurisdictions. The company also has 100+ municipal customers in Canada.

3. Hart InterCivic Inc. is a privately held United States company that provides elections, and print solutions to jurisdictions nationwide. While headquartered in Austin, Texas, Hart products are used by hundreds of jurisdictions nationwide, including counties in Texas, the entire states of Hawaii and Oklahoma, half of Washington and Colorado, and certain counties in Ohio, California, Idaho, Illinois, Indiana, Kentucky, Oregon, Pennsylvania, and Virginia.

Hart entered the elections industry in 1912, printing ballots for Texas counties. (Side note: As Republican and Democratic state legislators hustle to pass a law moving Georgia toward paper ballot voting technology, election integrity advocates said they’re concerned a bill that already cleared the state Senate could lead to a new vulnerability in Georgia’s next voting system, if it becomes law.

One way a new system might work is through a touchscreen computer similar to those currently used in Georgia. It would print a paper ballot with a visual representation of a voter’s choices so they themselves can check for accuracy.

In some systems, counting the votes means scanning an entire image of the ballot that may include a timestamp and precinct information.

In other systems, barcodes or QR codes on a ballot would correspond with the voter’s choices, which can make counting easier and faster for election officials, said Peter Lichtenheld, vice president of operations with Hart Intercivic, one of several election technology companies that hired lobbyists at the statehouse this year.)

*** The text of the letter to the three vendors is below:

The full text of the senators’ letter is below:

Dear Mr. Braithwaite, Mr. Burt, and Mr. Poulos:

Recent reports of U.S. IT and software companies submitting to source code reviews in order to access foreign markets have raised concern in Congress given the sensitivity of the information requested by countries like China and the Russian Federation. As such, we write to inquire about the security of the voting machines you manufacture and whether your company has been asked to share the source code or other sensitive or proprietary details associated with your voting machines with the Russian Federation.

The U.S. intelligence community has confirmed that Russia interfered with the 2016 presidential elections. As a part of a multi-pronged effort, Russian actors attempted to hack a U.S. voting software company and at least 21 states’ election systems. According to the Chicago Board of Elections, information on thousands of American voters was exposed after an attack on their voter registration system.

Foreign access to critical source code information and sensitive data continues to be an often overlooked vulnerability. The U.S. government and Congress have recently taken steps to address some cyber vulnerabilities, including by banning the use Kaspersky Lab, a Moscow-based cybersecurity firm that has maintained a relationship with Russia’s military and intelligence sectors, from all U.S. government computers. Now, we must also ensure the security of our voting machines and associated software.

Recent reports indicate that U.S. based firms operating on U.S. government platforms gave Russian authorities access to their software. In order to sell their software within Russia, these companies allowed Russian authorities to review their source code for flaws that could be exploited. While some companies maintain this practice is necessary to find defects in software code, experts have warned that it could jeopardize the security of U.S. government computers if these reviews are conducted by hostile actors or nations. U.S. tech companies, the Pentagon, former U.S. security officials, and a former U.S. Department of Commerce official with knowledge of the source code review process have expressed concerns with this practice.

In addition, Russia’s requests for source code reviews have increased. According to eight current and former U.S. officials, four company executives, three U.S. trade attorneys, and Russian regulatory documents, between 1996 and 2013 Russia conducted reviews for 13 technology products from Western companies, but has conducted 28 such reviews in the past three years alone.

As the three largest election equipment vendors, your companies provide voting machines and software used by ninety-two percent of the eligible voting population in the U.S. According to voting machine testing and certification from the Election Assistance Commission, most voting machines contain software from firms which were alleged to have shared their source code with Russian entities. We are deeply concerned that such reviews may have presented an opportunity for Russian intelligence agents looking to attack or hack the United States’ elections infrastructure.  Further, if such vulnerabilities are not quickly examined and mitigated, future elections will also remain vulnerable to attack.

In order to help the security and integrity of our systems and to understand the scope of any potential access points into our elections infrastructure, we respectfully request answers to the following questions:

  1. Have you shared your source code or any other sensitive data related to your voting machines or other products with any Russian entity?
  2. To your knowledge, has any of the software that runs on your products been shared with any Russian entity?
  3. What steps have you taken or will you take in order to upgrade existing technologies in light of the increased threat against our elections?

The 2018 election season is upon us. Primaries have already begun and time is of the essence to ensure any security vulnerabilities are addressed before 2018 and 2020.

Thank you for your attention to this matter, and we look forward to working with you to secure our elections.

Sincerely,

 

Susan Rice Unmasked the Names in the Seychelles Meeting

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Who is George Nader? 

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A Lebanese-American businessman, Nader currently serves as an adviser to Emirati Crown Prince Mohammed bin Zayed Al-Nahyan, who has developed a close relationship with Jared Kushner. For years, Nader has been a well-known, if somewhat off-the-radar, figure in certain political circles. According to the Times, Nader worked with the Bill Clinton administration in its attempt to broker a peace deal between Syria and Israel, convincing the White House that he could leverage his influential contacts with the Syrian government. After the 2003 invasion of Iraq, Nader worked with Prince’s private security company, Blackwater—which is now known as Academi—as a “business-development consultant,” according to a 2010 deposition. At the time of the 2016 election, he was serving as an adviser to Prince Mohammed, and was a frequent visitor to the White House during the early months of the Trump administration, where he met with Kushner and former chief strategist Steve Bannon.

***

George Nader, a Middle East expert connected to several associates of President Donald Trump, is now cooperating with the special counsel Robert Mueller and has testified before a grand jury in the Russia investigation, The New York Times reported Tuesday.

FBI investigators approached Nader when he landed at Washington Dulles International Airport in January and served him with search warrants and a grand jury subpoena, the report said. At the time, Nader was en route to Mar-a-Lago to meet with President Donald Trump and his associates to celebrate the anniversary of Trump’s first year in office.

The meeting was said to have raised red flags within the US intelligence community because the government was not notified of Crown Prince Mohammed’s visit. The Obama administration felt misled by the UAE as a result, which prompted then-national security adviser Susan Rice to request that Trump associates’ names be unmasked in intelligence reports detailing the meeting.

A senior Middle East official acknowledged to CNN last year that the UAE did not inform the US of the crown prince’s visit in advance but denied that the UAE had misled the Obama administration. The official said that the December Trump Tower meeting was merely part of an effort to build a relationship with the incoming administration.

Mueller’s prosecutors have repeatedly questioned Nader about the meeting, as well as his meetings in the White House with Kushner and Bannon following Trump’s inauguration.

That same month, Kushner met with Sergei Kislyak, then Russia’s ambassador to the US, and reportedly proposed setting up a secure back-channel of communication between Trump and Moscow using Russian facilities.

Shortly after, Kushner had a separate meeting with Sergei Gorkov, the CEO of the sanctioned Russian state-owned bank Vnesheconombank, which was reportedly orchestrated by Kislyak. The interaction piqued investigators’ scrutiny as the FBI began examining whether Russian officials suggested to Kushner that Russian banks could finance Trump associates’ business ventures if US sanctions were lifted or relaxed.

Kushner’s meeting with Gorkov came as he was looking for investors to shore up financing for a building on Fifth Avenue in New York that his family’s real-estate company had purchased.

Prince told the House Intelligence Committee last year that he knew Kirill Dmitriev was a Russian fund manager but did not know it was a sanctioned fund that was controlled by the Russian government.

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After the Seychelles meeting, Dmitriev also met with Anthony Scaramucci, who would later become the White House communications director, at the World Economic Forum in Davos, Switzerland.

Russian state media quoted Scaramucci as saying, after his meeting with Dmitriev, that the Obama administration’s new sanctions on Russia — which were imposed that month to penalize it for interfering in the 2016 election — were ineffective and detrimental to the US-Russia relationship.

Dmitriev’s company, the Russian Direct Investment Fund, was included on the list of Russian economic entities that were penalized as part of that decision.

An RDIF spokesperson reached out to Business Insider to clarify that the fund was included on the US sanctions list because of its status as a former subsidiary of Vnesheconombank. More here.

When it comes to the Russian Direct Investment Fund, Americans and people with ties to the U.S. have held some of the top spots at RDIF. For years, a deputy CEO at the fund was Sean Glodek, a Stanford alum and Wharton MBA graduate who previously worked at Deutsche Bank and Lehman Brothers. The current deputy co-director for RDIF’s Russia-China investment fund is Oleg Chizh, a Brandeis and Columbia graduate. Other Americans have served in top investor relations and advisory roles.

Part of its mission is to make outsiders more comfortable investing in Russia by pairing their capital with RDIF funds. It was formerly part of VEB, the bank that doubles as Russian President Vladimir Putin’s “private slush fund,” according to Atlantic Council fellow Anders Aslund. More here.

Qatar Foundation Buying American Education/Teachers

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Remember when the Obama regime traded out the top Taliban commanders from Gitmo to Qatar for Bowe Bergdahl? Remember when the Obama regime was working to normalize relations with the Taliban by funding an embassy for them in Qatar?

In 2017, Defense Secretary Jim Mattis placed the blame for the current mess in Afghanistan squarely on the Obama administration, telling Congress Wednesday that by cutting support for the Afghan forces prematurely, President Obama allowed the Taliban to regroup and recover.

“I believe that we pulled out forces at a time, as you know, when the violence was lower, but we pulled them out on a timeline rather than consistent with the maturation of the government and the security forces,” Mattis told a Senate subcommittee Wednesday.

“The result was that as security declined, all the other stresses have come to bear, to include heavy casualties on the part of the Afghan forces, other nations pulled their forces out as well, and the Taliban was emboldened.”

Or remember when Eric Holder traveled to Qatar in 2009 to deliver a speech on financial corruption? Did he know that the Qatari Fund was buying American teachers and spreading hate against Israel and promoting Islam in the American education system? uh huh….

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The emirate’s educational foundation spreads anti-Israel and anti-American propaganda in U.S. schools.

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NR: On January 27, Qatar Foundation International (QFI) sponsored a continuing-education event titled “Middle East 101” for public-school teachers in Phoenix, Ariz. It was hosted by the Arizona Department of Education — which is not surprising, given that QFI has donated over $450,000 to Arizona public schools (and over $30 million to public schools across the country). Unfortunately, while there was a good deal of interesting material, teachers also got a large helping of Islamist propaganda, designed to influence American schoolchildren and ultimately to advance Qatari foreign policy.

QFI program officer Craig Cangemi introduced QFI as an American member organization of the Qatar Foundation (QF), which he blandly described as “a private, education-focused foundation in Doha, Qatar.” In fact, QF is a massive apparatus directly managed by Qatar’s ruling Al-Thani family, which conducts a tremendous range of state-development activities ranging from technology research to higher education. This includes “Education City,” a district in Doha that hosts Qatari branches of American universities, including Texas A&M, Northwestern, Georgetown, and others, which QF funds to the tune of more than $400 million annually. Georgetown alone received nearly $300 million in grants from QF between 2011 and 2016.

However, while the American universities are able to preserve some freedom of thought, other QF-backed schools in Doha enforce a rigid ideological program. QF schools and mosques often host the most virulently radical Islamist preachers, including one who referred to the 9/11 attacks as a “comedy film,” another who said that Jews bake Passover matzoh with human blood (“believing that this brings them close to their false god”), and a third who accused the Shia of “poisoning” and “sorcery.”

A featured lecturer of the QF-backed Qatar Faculty of Islamic Studies was Mohamed El-Moctar El-Shinqiti, currently a professor at the QF’s flagship Hamad bin Khalifa University. El-Shinqiti was once an imam at a West Texas mosque, where he openly encouraged young people to engage in terror attacks against Israel and Egypt. The dean of the QF’s College of Islamic Studies (CIS) is Emad al-Din Shahin, a member of the Egyptian Muslim Brotherhood whose prominence led Egypt’s military regime to sentence him to death in absentia. Other CIS faculty are connected to the International Institute for Islamic Thought (IIIT), the Muslim Brotherhood’s American think tank that is the nexus of a terror-finance network named the SAAR Network. These CIS faculty include Louay Safi, former IIIT executive director and research director, and Jasser Auda, also an IIIT lecturer. Other faculty seem closely aligned with the IIIT’s long-term goal of the “Islamization of knowledge,” including one professor working under Auda who has written about “Revelation as a source of engineering sciences.”

An American educator who worked at a QF educational institution in Doha told the Middle East Forum that faculty were not allowed to purchase maps showing the state of Israel, the entire territory of which was instead labeled “Palestine.” Even tangentially mentioning the existence of Israel or the Holocaust in class would provoke severe reprisals from the Qatari Ministry of Education. The official government policy was “Israel doesn’t exist.”

QF is a committed supporter of Islamist extremism, particularly at its Al-Qaradawi Center for Islamic Moderation and Renewal — named in honor of Sheikh Yousef Al-Qaradawi, spiritual leader of the Muslim Brotherhood, who chaired the committee that established the Center’s faculty. (Al-Qaradawi has repeatedly endorsed suicide bombings, terrorist attacks against the United States, and the total extermination of the Jews. He is barred from entering the U.S. because of terrorism concerns.) And in 2012, QF hosted Hamas leader Ismail Haniyeh (who was just designated as a terrorist by the federal government) and gave him a “victory shield” featuring the Dome of the Rock.

Meanwhile, during the “Middle East 101” event, Cangemi insisted that QFI (the American branch of QF) sets its own policies, saying, “We are an autonomous organization. . . . We do not have any ties with Qatar: the government, the state, or really [the] Qatar Foundation.” This is patently false. The CEO and nominal founder of QFI is Sheikha Hind bint Hamad Al-Thani, the daughter of Qatar’s former emir. The chairman of the board of QFI is Sheikh Jassim bin Abdulaziz Al-Thani, another member of the royal family. As of 2012 (the most recent year for which public records are available), the treasurer of QFI was Khalid Al Kuwari, a senior Qatari government official and a scion of the powerful Al-Kuwari clan. QFI is in fact a key instrument of Qatari state policy.

Evidence of this is found in the teaching materials that Cangemi recommended to his schoolteacher audience. Al Masdar, for instance, is QFI’s flagship curriculum project. It offers lesson plans and resources about countries all over the Middle East. Unsurprisingly, the most flattering collection is about Qatar. One resource offered is even titled: “Express Your Loyalty to Qatar.” No lesson plan appears particularly critical of Qatar, whereas other countries discussed in Al Masdar’s resources are subject to much more varied discussion.

Other lesson plans contain anti-Semitic and anti-American material, particularly several lessons produced by the Zinn Education Project, which claims to promote a revisionist “people’s history.” These include “Greed as a Weapon: Teaching the Other Iraq War,” which examines the “greed” of the corporations ostensibly responsible for the Iraq war in order to “feast on Iraq’s economy,” and “Whose ‘Terrorism’?”, which questions the definition of terrorism, creating scenarios for students to discuss — for example, if “Israeli soldiers taunting and shooting children in Palestinian refugee camps, with the assistance of U.S. military aid” should be considered an example of terrorism.

The main speaker at the “Middle East 101” event was Barbara Petzen, a senior staff member at the Center for Strategic and International Studies who once worked for the Saudi-funded Middle East Policy Council (MEPC). Petzen has been longaccused of anti-Israel bias in educational fora. During her presentation, she repeatedly argued that religion or ideology had no relationship with Islamic terrorism, which she claimed was more immediately rooted in Muslim political grievances against the West for its support of Israel and the wars in Iraq and Afghanistan. (Petzen hit similar themes in a 2015 presentation for QFI.)

Petzen particularly whitewashed the role of Islamism, a religious-political ideology with roots in 20th-century totalitarianism that demands political supremacy as a religious value, and thus leads inevitably to political violence. She argued that Islamism, as represented by Saudi Arabia and the Egyptian Muslim Brotherhood, is focused on governing society (albeit in a religiously severe fashion), and is therefore opposed to extremism, since “extremism, by definition, turns things over — is destabilizing. . . . If you’re in power, you don’t want extremism because it destabilizes your control.” (By this faulty definition, no ruling ideology can be “extremist.” Indeed, ISIS would not be considered “extremist” once it set up its government.)

Similarly, when commenting on the June 2017 decision by Saudi Arabia, Egypt, and seven other Muslim countries to sever ties with Qatar, Petzen downplayed the importance of the Qatari regime’s deep, systematic support for Islamism and terrorism. Instead, she claimed the diplomatic crisis was motivated mainly by Qatar’s close economic relations with Iran, a geostrategic competitor of Saudi Arabia. This ignores the fact that Qatar’s neighbors fear destabilization by the Muslim Brotherhood and its supporters and have abruptly reversed their own prior support of the Brotherhood in response.

Petzen’s claim echoes the line taken by QFI itself. In July 2017, QFI and Al Jazeera jointly produced a propaganda video condemning the so-called blockade of Qatar. In November, QFI organized a panel discussion claiming that the Gulf states’ isolation of Qatar was due to “fake news,” a claim that QFI’s executive director, Maggie Salem, explicitly endorsed on Twitter. For QFI to belittle the very real alarm that other Muslim states feel about Qatar’s support for extremism is telling, and it calls into question QFI’s claims of independence from the Qatari state.

Qatar Foundation International presents itself as a beneficent charity, merely working to spread knowledge of different cultures. In fact, it is an agent of Qatari foreign policy, with the aim of influencing American schoolchildren to support the Qatari agenda. No matter how attractive Qatari money may be, American educators must reject QFI.

Sessions DoJ Sues California

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California, Gov. Jerry Brown and state Attorney General Xavier Becerra as co-defendants in the DoJ lawsuit.

Attorney General Jeff Sessions on Wednesday attacked the mayor of Oakland, California for warning residents about impending immigration raids, one day after filing a lawsuit against the state alleging it obstructs federal immigration enforcement.
“How dare you needlessly endanger the lives of law enforcement just to promote your radical open borders agenda,” Sessions said of Oakland Mayor Libby Schaaf.

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***

In his remarks, Sessions noted “worrisome” trends as violent crime increased in 2014 and 2015, particularly a surge in homicide and drug availability. He said that a lawful immigration system was part of tackling such trends.

Sessions said that while America admits the highest number of legal immigrants in the world, the American people deserve a legal, rational immigration system that protects the nation and preserves the national interest.

“It cannot be the policy of a great nation to reward those who unlawfully enter its country with legal status, Social Security, welfare, food stamps, and work permits and so forth. How can this be a sound policy?” he asked.

“Meanwhile, those who engage in this process lawfully and patiently and wait their turn are discriminated against, it seems, at every turn.”

Turning to California, he described “open borders” policies that refuse to apprehend and deport illegal immigrants as a “radical, irrational idea that cannot be accepted” and rejected the right of states to obstruct federal immigration law.

“There is no nullification. There is no secession,” he said. “Federal law is the supreme law of the land. I would invite any doubters to go to Gettysburg, or to the tombstones of John C. Calhoun and Abraham Lincoln.”

He then tore into Oakland Mayor Libby Schaaf, who tipped off the public to an immigration raid in the San Francisco Bay Area last week — a move he said led to as many 800 illegal immigrants evading capture and put both residents and law enforcement at risk. More here.

The 18 page complaint is here.

The lawsuit, filed in federal court in the state capital of Sacramento, challenges three specific laws:

— SB 54, which restricts law enforcement officials from notifying federal immigration agents about the release dates for prisoners in their custody who have been convicted and therefore face deportation. It also prohibits local officials from transferring those prisoners to federal custody.

As a result, the Justice Department says, immigration agents face greater danger in re-arresting the former prisoners once they’re back on the streets.

— AB 450, which forbids private employers from cooperating with immigration agents who conduct worksite enforcement operations. The law also requires employers to tell their workers when federal agents are coming to conduct inspections.

The Justice Department said a committee of the state legislature described the law as an effort to frustrate “an expected increase in federal immigration enforcement actions.”

— And AB 103, which requires the state to inspect detention facilities where federal authorities are holding immigrants who face deportation.

 

CFIUS, what is Worse than Uranium One?

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When Douglas Campbell, the FBI informant and Uranium One whistle-blower says that Obama himself approved the deal, he was right. Campbell has delivered in February, written testimony annexed with full evidence to three congressional committees. Further, he was provided an monetary award/reward for his remarkable work as an informant. For the full summary and details, go here.

Campbell’s lawyer of record, Victoria Toensing has sent a letter to Attorney General Jeff Sessions to further investigate the matter and the media smearing of Campbell himself including committee leaks. That letter is found here.

AG Sessions has not responded at the time of this post.

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Related reading: Cfius, Powerful and Unseen, Is a Gatekeeper on Major Deals

Meanwhile, looking deeper into Obama and CFIUS….

By law, CFIUS, Committee on Foreign Investment in the United States, does not publicly disclose information provided to CFIUS by parties to a transaction, nor does it reveal the fact that the parties have submitted the transaction for review. If CFIUS determines that the transaction poses national security concerns that cannot be resolved, it will refer the transaction to the President which the President has 15 days after completion of CFIUS’s investigation to decide. The President must publicly announce his decision.

CFIUS provides an annual report to Congress, but the last report was dated 2015. This report is in accordance with section 721(m) of the Defense Production Act of 1950 and the amended section of the Foreign Investment and National Security Act of 2007.

The Process  

During the review period, CFIUS members examine the transaction in order to identify and address, as appropriate, any national security concerns that arise as a result of the transaction. CFIUS concludes action on the preponderant majority of transactions during or at the end of the initial 30-day review period.  In certain circumstances defined in section 721 and at § 800.503 of the regulations, CFIUS may initiate a subsequent investigation, which must be completed within 45 days.  In certain circumstances described at section 6(c) of Executive Order 11858, as amended, and § 800.506 of the regulations, CFIUS may also refer a transaction to the President for decision.  In such case, section 721 requires the President to announce a decision with respect to a transaction within 15 days of CFIUS’s completion of the investigation. If CFIUS finds that a covered transaction presents national security risks and that other provisions of law do not provide adequate authority to address the risks, then CFIUS may enter into an agreement with, or impose conditions on, parties to mitigate such risks or may refer the case to the President for action.

Where CFIUS has completed all action with respect to a covered transaction or the President has announced a decision not to exercise his authority under section 721 with respect to the covered transaction, then the parties receive a “safe harbor” with respect to that transaction, as described in § 800.601 of the regulations and section 7(f) of Executive Order 11858, as amended.

Rejection

During the entire term of President, he only got one referral that he rejected. President Obama blocked a privately owned Chinese company from building wind turbines close to a Navy military site in Oregon due to national security concerns, and the company said it would challenge the action in court.

Ralls Corp, which had been installing wind turbine generators made in China by Sany Group, has four wind farm projects that are within or in the vicinity of restricted air space at a naval weapons systems training facility, according to the Obama administration.

“There is credible evidence that leads me to believe” that Ralls Corp, Sany Group and the two Sany Group executives who own Ralls “might take action that threatens to impair the national security of the United States,” Obama said in issuing his decision.

Industry Sectors

From 2009-2015, 75% of the foreign transactions included finance, information, mining, utilities and transportation. From 2013-2015, China was the largest country with transactions by far with manufacturing being the majority of the transactions. If there are concerns with any part of the transaction, CFIUS will work on mitigation measures as they relate to national security such that CFIUS earnestly wants the transaction(s) to occur. CFIUS offers onsite compliance, assigns additional staff and offers tracking systems as well as instructions and procedures from in-house expertise to meet stipulations and standards where on other issues, waivers can be designated if compliance is too difficult or adverse to national security standards and law.

Review Concerns

Expanded conditions for national security considerations include vulnerabilities, cyber, sabotage and exploitation. Further, if any transaction leads to complications to critical infrastructure or energy production or would affect the U.S. financial system and would in some conditions have access to sensitive government information, classified material or in any manner threaten a government employee, involve activities related to weapons, munitions, aerospace, satellite or radar system(s), these items would impair the approval process or under the CFIUS review, mitigation procedures would be applied.

Little is of consequence when a foreign company that under cover is actually controlled by a foreign government which is a terrifying condition. A 2011 Office of the National Counterintelligence Executive report to Congress stated that the pace of foreign economic collection and industrial espionage activities against major U.S corporations and U.S. government agencies is accelerating.

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Are we sure we want China, Russia or any Middle Eastern country investing in any form or part in the United States when we have the likes of Warren Buffet or Bill Gates and those billions?

Sens. Tom Cotton (R-Ark.) and Marco Rubio (R-Fla.) introduced legislation on Wednesday to prevent the U.S. government from using products from certain Chinese telecommunications firms.

The impetus for Cotton and Rubio’s legislation is concern over the Chinese government using hypothetical backdoors in ZTE and Huawei phones to spy on U.S. government officials.

“Huawei is effectively an arm of the Chinese government, and it’s more than capable of stealing information from U.S. officials by hacking its devices,” Cotton said in a statement. “There are plenty of other companies that can meet our technology needs, and we shouldn’t make it any easier for China to spy on us.”

Uranium One violated all conditions set forth in the CFIUS law. China is yet a larger security issue and all agency members of CFIUS are aware of this and the history of both Russia and China.

The risks and violations of law are well known in Congress and legislation has been introduced to address major concerns, yet still the United States is and has sold out to at least 2 rogue countries and no security assessments have been published.