Category Archives: corruption/Illegal markets

How to Profit from Chaos: the case for Libyan oil

The Scoglitti Restaurant blocked by the US Treasury.

On February 26, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today sanctioned six individuals, 24 entities, and seven vessels pursuant to Executive Order (E.O.) 13726 for threatening the peace, security, or stability of Libya through the illicit production, refining, brokering, sale, purchase, or export of Libyan oil or for being owned or controlled by designated persons.  Oil smuggling undermines Libya’s sovereignty, fuels the black market and contributes to further instability in the region while robbing the population of resources that are rightly theirs.  Illicit exploitation of Libyan oil is condemned by United Nations Security Council Resolutions (UNSCRs) 2146 (2014) as modified by 2362 (2017).  As a result of today’s actions, any property or interest in property of those designated by OFAC within U.S. jurisdiction is blocked.  Additionally, U.S. persons are generally prohibited from engaging in transactions with blocked persons, including entities owned or controlled by designated persons.

OFAC designated Darren Debono, Gordon Debono, Rodrick Grech, Fahmi Ben Khalifa, Ahmed Ibrahim Hassan Ahmed Arafa, and Terence Micallef pursuant to E.O. 13726 for their involvement in the smuggling of petroleum products from Libya to Europe.  In 2016, Maltese nationals Darren and Gordon Debono formed an unofficial consortium for illicit fuel smuggling from Zuwarah, Libya, to Malta and Italy in an operation that reportedly earned the group over 30 million eurosLibyan national Fahmi Ben Khalifa managed the Libya side of the fuel smuggling operation, and Maltese national Rodrick Grech transported the Libya-originated fuel to European ports where it was sold using falsified fuel certificates, reportedly forged by Egyptian-Maltese citizen Ahmed Ibrahim Hassan Arafa, to obfuscate the fuel’s origin.  Additionally, Maltese national Terence Micallef operated a Malta-based shell company to sell the smuggled petroleum products in Europe.

The February 26, 2018 Treasury action also targeted 21 companies for being owned or controlled by Darren and Gordon Debono and three additional companies for being involved in the illicit exploitation of crude oil or any other natural resources in Libya, including the illicit production, refining, brokering, sale, purchase, or export of Libyan oil.  [These included]….the Malta-based Scoglitti Restaurant, Marie De Lourdes Company Limited, World Water Fisheries Limited, and Andrea Martina Limited for being owned or controlled by Darren Debono.

Excerpts from Press Release, Treasury Sanctions International Network Smuggling Oil from Libya to Europe, Feb. 26, 2018

Slavery Never Dies

The African Union on Friday urged Mauritania to make a greater effort to eliminate slavery after the country handed out lenient sentences to a family of slave owners in a landmark conviction….In a statement published online, the African Union (AU)’s Committee of Experts on the Rights and Welfare of the Child said that…Mauritania should also “give due regard to the issue of slavery and make the elimination… one of its priorities,” the pan-African body said…

Mauritania was the last country in the world to abolish slavery in 1981, and has one of the highest rates of slavery in the world, with 1 in 100 people living as slaves, according to the 2016 Global Slavery Index.  Slavery is a historical practice in Mauritania, where dark-skinned ethnic groups make up the main “slave caste”, often working as domestic servants and cattle herders. A new anti-slavery law in 2015 doubled the prison term for perpetrators to 20 years, but in its second prosecution a year later Mauritania gave two slave owners only five-year sentences.

Exceprts from African Union urges Mauritania to crack down on slavery, Reuters, Jan. 26, 2018

 

The Hide and Seek with North Korea and Assists

North Kora cargo ship at Nampo

China, Russia and other countries are failing to rein in North Korea’s illicit financing and weapons proliferation activity, according to a new United Nations report…Their draft report, distributed late the week of Feb. 1, 2018 to a U.N. committee overseeing North Korea sanctions compliance before it heads to the Security Council, details the many ways that Pyongyang is sidestepping bans on trade, finance and weapon sales, according to people who have read the document. The report was also reviewed by The Wall Street Journal.,,,

The report also cites evidence from a member country that Myanmar is buying a ballistic-missile system and conventional weapons from North Korea, including rocket launchers and surface-to-air missiles. Intelligence provided to the investigators suggest Myanmar… is seeking items that are controlled by nuclear and other major weapon proliferation agreements.

The U.N. investigators criticized China, Russia, Malaysia and other countries for failing to do enough to curb illicit finance and trade being conducted in their countries. Roughly $200 million in North Korean coal and other commodities was exported in violation of U.N. bans, the panel said.

Much of North Korea’s coal and fuel shipments went through Chinese, Malaysian, Vietnamese or Russian ports. More than 30 representatives of North Korean financial institutions have been operating abroad, including in China and Russia, the investigators say.

U.N. investigators, citing member-country intelligence, said North Korean ballistic-missile technicians visited Syria several times in 2016 and continue to operate at three sites in the country. They also cited evidence that Syria had received valves and special acid-resistant tiles that are known to be used in chemical-weapons programs.There were enough tiles, according to the U.N. panel’s inspection of interdicted cargo, for a large-scale, high-temperature industrial project. According to one member state, the tiles could be used to build the interior walls of a chemical factory. Two shipments interdicted in late 2016, according to the report, contained enough valves, pipes and cables to build a large-scale industrial project.

 

U.N. Report Faults China, Russia for Subverting North Korea Sanctions, WSJ, Feb. 3, 2018

Fish Poachers in Africa

trawler. image from wikipedia

In Sierra Leone nearly half the population does not have enough to eat, and fish make up most of what little protein people get. But the country’s once-plentiful shoals, combined with its weak government, have lured a flotilla of unscrupulous foreign trawlers to its waters. Most of the trawlers fly Chinese flags, though dozens also sail from South Korea, Italy, Guinea and Russia. Their combined catch is pushing Sierra Leone’s fisheries to the brink of collapse.

Sierra Leone is not alone in facing this crisis. According to the UN’s Food and Agriculture Organisation, 90% of the world’s fisheries are dangerously overexploited. The Africa Centre for Strategic Studies, a think-tank funded by America’s defence department, reckons that about a quarter of fish caught off Africa’s shores are taken illegally.

Excerpt from Poachers afloat: Why Sierra Leone is running out of fish, Economist, Dec. 16, 2017

Empathy and Understanding-Exporting Apes Alive

Daniel Stiles, a self-styled ape trafficking detective in Kenya, had been scouring Instagram, Facebook and WhatsApp for weeks, looking for pictures of gorillas, chimps or orangutans. He was hoping to chip away at an illicit global trade that has captured or killed tens of thousands of apes and pushed some endangered species to the brink of extinction.

Malnourished and terrified apes have been seized across the world, in undercover busts or at border checkpoints, in countries as varied as France, Nepal, Thailand, the Democratic Republic of Congo and Kuwait. Two years ago, at Cairo’s international airport, the Egyptian authorities discovered a baby chimp curled up into a ball and stashed in a piece of hand luggage. Just this summer, the authorities in Cameroon stopped a smuggler at a roadblock who was trying to move 100 pounds of pangolin scales and a tiny chimp, not even a month old, hidden in a plastic sack…

Wildlife researchers say that a secret ape pipeline runs from the lush forests of central Africa and Southeast Asia, through loosely policed ports in the developing world, terminating in wealthy homes and unscrupulous zoos thousands of miles away. The pipeline, documents show, is lubricated by corrupt officials (several have been arrested for falsifying export permits) and run by transnational criminal gangs that have recently drawn the attention of Interpol, the international law enforcement network.

Apes are big business — a gorilla baby can cost as much as $250,000 — but who exactly is buying these animals is often as opaque as the traffickers’ identity.

Wildlife officials said that a handful of Western businessmen had also been arrested. But the majority of recent busts, they added, have been in Africa or Southeast Asia, usually of low-level traffickers or poorly paid underlings, not the bosses who control underground exports and travel abroad to make deals…

“They have consciousness, empathy and understanding,” said Jef Dupain, an ape specialist for the African Wildlife Foundation. “One day we will wonder how did we ever come up with the idea to keep them in cages.”…

But a baby was different, he said. There was a specific market for infant apes, so he would sell them alive, for at least $10 each, to local traders who would then smuggle them to Kinshasa and sell them to foreigners for many times that amount…

In Boende, a small town up another tributary of the Congo River, three hunters were recently caught with bonobo carcasses and sentenced to several years in a stifling colonial-era prison. The men said they were simply trying to feed their families by selling bonobo meat. But poaching an ape is a serious crime in Congo, and nonprofit wildlife groups have been assisting the Congolese authorities in prosecuting offenders.“There is a culture here to eat meat, meat from the forest,” said the town’s prosecutor, Willy Ndjoko Kesidi. “Me, I like fish.”  Mr. Kesidi expressed some sympathy for the hunters he had just jailed, saying that the prison where they were housed was a horrible place where many prisoners had died…

Many illegal wildlife transactions start online, specifically through Instagram or WhatsApp. Mr. Stiles has made several trips to the United Arab Emirates, which he considers a new hub for the illegal online wildlife business. Dealers in the Middle East have posted many pictures of apes for sale, sometimes advertising them as friendly pets for children…

Several years ago, the Indonesian police rescued a female orangutan who had been shaved and was being used as a prostitute at a brothel.

Excerpts from JEFFREY GETTLEMAN, Smuggled, Beaten and Drugged:
The Illicit Global Ape Trade, NY Times, Nov. 4, 2017

See also Stolen Apes (pdf)

The Flourishing Jihadists and their Support Systems

Ansar Dine jihadists. Ansar Dine seeks to impose strict Sharia law across Mali. Image from wikipedia

U.S. special forces who accompanied Niger’s military at a meeting of village leaders in Tongo Tongo on Oct. 4, 2017were working in the country’s treacherous western borderlands, a region of shifting tribal allegiances, opaque motives and ethnic grudges going back decades, all feeding into a growing jihadi problem.  Four Americans and five Nigerien troops died after leaving Tongo Tongo and being ambushed and heavily outgunned by fighters armed with automatic weapons and rocket-propelled grenades. The militants are believed to be from a Malian-led militia, Islamic State in the Greater Sahel, which declared allegiance to the overall militant organization in 2015.

One error appears to have been downplaying the danger. The Tillaberi and Tahoua regions in western Niger have been under a state of emergency since March 2017, as Niger has confronted the Islamic State offshoot, led by Malian extremist Abu Walid Sahrawi. U.S. forces have been present in the region to advise and assist Nigerien forces.

The United Nations has cataloged 46 attacks by extremists in western Niger since February 2016, including a February 2017 attack that killed 15 Nigerien soldiers and one a year ago that killed 22 Nigerien forces at a refugee camp.,,

Niger’s interior minister, Mohamed Bazoum, said intelligence failures were to blame for the nine deaths. He said Islamic State in the Greater Sahel is more entrenched in local communities than are government forces.

Adam Sandor, an analyst on violent extremism in the Sahel at the University of Ottawa, said….“Essentially, the attackers are believed to have been scoping out and planning the attack and must have a knowledge of local communities in the area. Local communities most likely shared with them the information regarding the Nigerien Armed Forces operating with foreigners or military advisors in this space,” he said.  Leaders of Tongo Tongo village have been arrested, amid suspicions they were delaying the departure of the Nigerien and U.S. forces to pave the way for the attackers.

America has 6,000 troops in 50 countries across the continent, according to the Department of Defense, although many of the missions are charged with guarding U.S. embassies. The counter-terrorism deployments include an estimated 1,000 special operations forces, many posted in high-risk locations such as Somalia, Mali and Nigeria. An estimated 800 troops are in Niger.  The U.S. also operates a string of drone bases throughout Africa, including one in Niger.

The Shabab is the deadliest of Africa’s terrorist groups and is believed to be responsible for the country’s worst terrorist attack: At least 358 people were killed Oct. 14, 2017 and 56 are still missing. The attack came weeks after a U.S. drone strike killed 10 civilians, including three children, in Bariire, west of Mogadishu.  The U.S. has carried out at least 60 drone strikes in Somalia since January 2017, according to the Bureau of Investigative Journalism, killing up to 510 people, including at least 38 civilians. The Shabab has killed 2,745 people in 2017, carrying out 987 of the continent’s 1,827 incidents of violent extremism in the first nine months of the year, according to the analytical group African Center for Strategic Studies.

The Shabab also has a presence in Kenya, where it launches regular attacks, including the 2013 Westgate shopping mall massacre that killed at least 67 people, and the 2015 Garissa University College attack, where 147 people — mainly university students — were killed. The terrorist group is believed to have a presence across East Africa.

Boko Haram, operating in Nigeria, Cameroon, Chad and southeastern Niger, was responsible for 2,232 deaths in the first nine months of the year, according to the Bureau of Investigative Journalism.

In Mali, myriad armed extremists operate, including Islamic State in the Greater Sahel and its rival the Group for the Support of Islam and Muslims, formed in March 2017 from several Al Qaeda-linked extremist groups, including Al Qaeda in the Islamic Maghreb. In 2012, Islamist militias took over half of the country before the French military drove them out of major cities.

The militias range freely across rural areas, crossing borders at will, launching operations in Mauritania, Ivory Coast and Burkina Faso, including attacks on hotels and resorts popular with foreigners.   In the Democratic Republic of Congo, where myriad rebel groups vie for control over mineral resources, a new organization emerged recently declaring fealty to Islamic State.  By comparison, Niger is one of the more stable countries in the region, making it the U.S. choice for a drone base being built outside Agadez, in central Niger, that will launch strikes across the region.

The Tongo Tongo attack has focused attention on Sahel leader Sahrawi…. He has a history of swapping sides and financing his operations through kidnappings.  He has recruited fighters from among the Fulani nomads in western Niger, exploiting ethnic rivalries with the Daoussahak people in the region, some of whom have formed a militia called the National Movement for the Liberation of Azawad. Both Niger and France have used the group as a proxy force to fight Islamic State in the Great Sahel, deepening ethnic animosities.

Excerpts from After Niger attack, a look at clandestine jihadis posing a growing danger to U.S. forces in Africa, L.A. Times, Oct. 21, 2017

Policing the Amazon Jungle

Transamazon Highway, image from wikipedia

The small town of Apui sits at the new frontline of Brazil’s fight against advancing deforestation…  The home of 21,000 people in southern Amazonas state was long protected by its remote location from illegal loggers, ranchers and farmers who clear the forest.  Now those who would destroy the jungle are moving in from bordering states, following the Transamazon Highway, which is little more than a red-dirt track in this part of the rainforest.

First come the loggers, who illegally extract valued lumber sold in far-off cities. The cattle ranchers follow, burning the forest to clear land and plant green pasture that rapidly grows in the tropical heat and rain. After the pasture is worn out, soy farmers arrive, planting grain on immense tracts of land…

Roughly 7,989 square kilometres (3,085 square miles) of forest were destroyed in 2016, a 29 percent increase from the previous year and up from a low of 4,571 square kilometers in 2012, according to the PRODES satellite monitoring system.

Then there are the fires.  Apui ranked first in the country for forest fires in the first week of August 2017, according to the ministry.

At their best the environmental agents can slow but not stop the destruction. They raid illegal logging camps, levy large fines that are rarely collected and confiscate chainsaws to temporarily impede the cutting.  Costa acknowledges that the roughly 1,300 environmental field agents who police a jungle area the size of western Europe have a difficult task, at the very least.

Excerpt from Brazil’s agents of the Amazon fighting loggers, fires to stop deforestation, Reuters, Aug. 20, 2017