Clinton, General Electric, Algeria and Money

As Secretary of State, Hillary Clinton boast about being the most traveled of any U.S. diplomat, landing her plane in 112 countries. Hillary held 1700 meetings with world leaders and had 755 meetings at the White House. Her travels included dancing in none other than Columbia, Malawi and South Africa.

In October of 2012, Hillary traveled to Bosnia Herzegovina, Serbia, Kosovo, Albania, Croatia and Algeria. Perhaps it was quite telling as of this writing, interesting deals were made in Algeria, a country full of corruption led by President Bouteflika.

It should be noted that on October 19 of 2012, meetings were held in Washington DC where the topics were bilateral and regional concerns as well as economic and security cooperation under the title of U.S.-Algeria Strategic Dialogue. There was also a United Nations Security Council resolution authorizing West African States to perform a military intervention to remove the Islamist rebels from North Mali.

Two years earlier, The Clinton Foundation received $500,000 from Algeria without approval from the State Department ethic office or legal counsel. Algeria alleges the money was earmarked for the relief efforts in Haiti. At the same time, Hillary tells the public relations team her objectives with Algeria was to address human rights issues as well as to nurture the relationships between the United States and Algeria.

Of particular note, in 2010, Algeria also spent more than $400,000 in lobbying the U.S. government officials as specified by records under the Foreign Agents Registration Act, while sending representatives more than a dozen times to the United States to visit top political and diplomatic operatives.

Reports have been often published where the U.S. State Department have found that Algeria lacks any transparency, has a history of random killings and widespread corruption. Hillary even notes the facts of Algeria being a failed state in her book, “Hard Choices”.

Algerian security forces also benefit from U.S. cooperation programs. Obama Administration officials have stated a desire to deepen and broaden bilateral ties, including in the aftermath of a four-day terrorist hostage seizure at a natural gas compound in southeastern Algeria in January 2013, in which three Americans were killed. The attack highlighted the challenges the United States faces in advancing and protecting its interests in an increasingly volatile region.

The terrorist group that seized the hostages is a breakaway faction of Al Qaeda in the Islamic Maghreb (AQIM), a regional network and U.S.-designated Foreign Terrorist Organization with roots in Algeria’s 1990s civil conflict. Given Algeria’s large military and available financial resources, U.S. officials have expressed support for Algerian efforts to marshal a regional response to terrorist threats. Yet Algeria’s relations with neighboring states are complex and sometimes distrustful, at times hindering cooperation. Meanwhile, any U.S. unilateral action in response to regional security threats could present significant risks and opportunity costs. Algeria’s macroeconomic position is strong due to high global oil and gas prices, which have allowed it to amass large foreign reserves. Yet wealth has not necessarily trickled down, and the pressures of unemployment, high food prices, and housing shortages weigh on many families. Public unrest over political and economic grievances has at times been evident, though other factors may have dampened enthusiasm for dramatic political change.

Algeria’s foreign policy has often conflicted with that of the United States. Strains in ties with neighboring Morocco continue, due to the unresolved status of the Western Sahara and a rivalry for regional influence. The legacy of Algeria’s anti-colonial struggle contributes to Algerian leaders’ desire to prevent direct foreign intervention, their residual skepticism of French and NATO intentions, and their positions on regional affairs, including a non-interventionist stance toward the uprising in Syria and an ambivalent approach to external military intervention in neighboring Mali.

 

When it comes to Algeria’s economic status, both the International Monetary Fund and the World Trade Organization have assumed unusual positive forecasts on Algeria. The U.S, State Department in 2012 declared that Algeria has stabilized and all efforts were underway to enhanced the U.S./Algeria Trade Investment Framework Agreement (TIFA). This bring to light a company called Sonatrach, which exploits hydrocarbons for global consumption under research and development.

From the State Department’s website, Algeria concluded commercial agreements with several U.S. companies including Northrup Grumman and General Electric. The number of foreign trade missions to Algeria reportedly grew from 30 in 2010 to 60 in 2012, illustrating the increased focus and competition in the local market. In 2012, Algeria concluded commercial agreements with several Arab and European nations. U.S. firms, such as Northrop Grumman and General Electric won multi-million dollar tenders. President Abdelaziz Bouteflika appointed former Minister of Water Resources, Abdelmalek Sellal, as the new Prime Minister. Sellal is trusted by the political elite and viewed as a pragmatic politician who seeks new economic partnerships to tackle long-standing issues, such as housing shortages and unemployment. Algerian leadership remains focused on building domestic production capacity and reducing imports and seeks U.S. expertise and partnership. Minister of Commerce Mustapha Benbada visited the United States in December 2012 for discussions with the Office of the U.S. Trade Representative related to Algeria’s World Trade Organization (WTO) accession and cooperation under the U.S.-Algeria Trade and Investment Framework Agreement (TIFA).

 

General Electric continues to court Algeria in partnerships and joint ventures in 2015. Sonatrach is a company rocked by constant scandal including fraud suspicions and prison terms, in fact the country itself is ranked 105th out of 176 in fraud.  The national hydrocarbon group Sonatrach and the American company General Electric (GE) signed Thursday in Algiers a memorandum of understanding on the creation of a joint company for the manufacturing of equipment used in oil and gas industry. This new unit, of which Sonatrach will hold 51% stake through the oil services holding (SPP) while 49% will be held by GE, will be set up in the form of a joint stock company. This unit will manufacture and develop, among others, equipment of drilling and production, equipment for measurement and supervision as well as provision for services and trainings relating to oil fields.

General Electric CEO, Jeffrey Immelt stated on April 22, 2015, he refused to turn over emails between himself and Hillary Clinton or those exchanged with the State Department. Immelt was also brought into the Obama administration as the ‘Job Czar’ and tendered his support for Obamacare while transferring his GE X-ray division to China to avoid the Obamacare taxes applied to medical devices. Immelt does need to provide evidence of the collusion especially when he authorized GE to contribute up to $1.0 million dollars to the Clinton Health Access Initiative.

Numerous sources, including the Wall Street Journal and the New Yorker, have recently reported that, while Secretary of State, Hillary Clinton lobbied foreign governments on behalf of companies including General Electric at a time when those companies were making donations to the Clinton Foundation. In late 2012, for example, Clinton urged the Algerian government to award a power plant contract to GE. GE contributed to the Clinton Foundation. Then in 2013, Algeria awarded the power plant contract to GE.

By donating to the Clinton Foundation while receiving a huge favor from the Secretary of State, did we not expose our company to the risk of being charged with honest services fraud? I am not accusing the company of any wrongdoing. But you have to admit that the optics suggest a quid pro quo could have occurred, and a public official pushing a foreign government to buy a company’s products while that company makes a generous donation to that public official’s family- run foundation appears to fit even the more limited definitions.

Since Mrs. Clinton had control of her business emails during this time and has said she deleted many of them, GE presumably is the only entity with evidence that everything was above board. To prevent the company from being the focus of any media or public investigation, would you consider making public all the Company’s written communications with the State Department during the relevant period?

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Denise Simon