Category Archives: power elite

Fleas in the Barn, they are- for Joseph Kabila et al.

Lake Mai Ndombe, image from wikipedia

Inongo is the provincial capital of the Mai-Ndombe Province, a 13-million-hectare area located some 650 km northeast of Kinshasa, Demoractic Republic of Conglo, DRC.

The forests of Mai-Ndombe… are rich in rare and precious woods (red wood, black wood, blue wood, tola, kambala, lifake, among others). It is also home to about 7,500 bonobos, an endangered primate…The forests constitute a vital platform providing livelihoods for some 73,000 indigenous individuals, mostly Batwa (Pygmies), who live here alongside the province’s 1.8 million population, many of whom with no secure land rights.  Recent studies also have revealed that the province – and indeed the forests – boasts significant reserves of diamond of precious metals nickel, copper, oil and coal, and vast quantities of uranium lying deep inside the Lake Mai-Ndombe.

In an effort to save these precious forests, the World Bank in 2016 approved DRC’s REDD+ programmes aimed at reducing greenhouse gas emissions and fight forest’s deforestation and degradation, which it would fund to the tune of 90 million dollars annually.  The projects, which are currently estimated at 20, have since transformed the Mai-Ndombe Province into a testing ground for international climate schemes. And as part of the projects, indigenous and other local people caring for the forests and depending on them for their livelihoods were supposed to be rewarded for their efforts.

However, Marine Gauthier, a Paris-based expert who authored a report on the sorry state of the Mai-Ndombe forest, seems to have found serious flaws in these ambitious programmes.  The report, released a few days before the International Day of Forests on March 21, 2018 by the Rights and Resources’ Initiative (RRI)), cited weak recognition of communities’ land rights, and recommended that key prerequisites should be addressed before any other REDD+ funds are invested.  In the interim, it said, REDD+ investments should be put on hold…..

Under the DRC’s 2014 Forest Code, indigenous people and local communities have the legal right to own forest covering an area of up to 50,000 hectares.Thirteen communities in the territories of Mushie and Bolobo in the Mai-Ndombe province have since asked for formal title of a total of 65,308 hectares of land, reports said, adding that only 300 hectares have been legally recognised for each community – a total of only 3,900 hectares.

Pretoria-based Donnenfeld added: “My guess is that the government is more interested in selling these resources to multinationals than it in seeing it benefit the community….Gauthier pointed out that…“REDD+ opens the door to more land-grabbing by external stakeholders appealed…. Local communities’ land rights should be recognised through existing legal possibilities such as local community forest concessions so that they can keep protecting the forest, hence achieving REDD+ objectives.”

Excerpts from Issa Sikiti da SilvaReprint, DR Congo’s Mai-Ndombe Forest ‘Savaged’ As Landless Communities Struggle,  IPS, Apr. 17, 2018

In the meantime the country is ravaged by internal violence

Returning Stolen Money: the Nigerian Saga (2002-2018)

Nigeria and Switzerland signed a memorandum of understanding on March 26, 2018 to pave the way for the return of illegally acquired assets…Switzerland said in December 2017 that it would return to Nigeria around $321 million in assets seized from the family of former military ruler Sani Abacha via a deal signed with the World Bank…[T]he memorandum of understanding was ratified between Nigeria, Switzerland and the International Development Association, (IDA), the World Bank’s fund for the world’s poorest countries.

Excerpt from Nigeria and Switzerland sign agreement to return stolen assets, Reuters, Mar. 26, 2018

How to Play the Game

A SpaceX Falcon rocket lifted off from the Kennedy Space Center in Florida on May , 2017 to boost a classified spy satellite into orbit for the U.S. military, then turned around and touched down at a nearby landing pad.

It was the 34th mission for SpaceX, but its first flight for the Department of Defense, a customer long-pursued by company founder Elon Musk. The privately owned SpaceX once sued the Air Force over its exclusive launch services contract with United Launch Alliance (ULA), a partnership of Lockheed-Martin and Boeing.)  The liftoff of a classified satellite for the National Reconnaissance Office (NRO) officially broke ULA’s 10-year monopoly on launching U.S. military and national security satellites.

In addition to the NRO’s business, SpaceX has won two Air Force contracts to launch Global Positioning System satellites in 2018 and 2019.  For now, the military’s business is a fraction of more than 70 missions, worth more than $10 billion, slated to fly on SpaceX rockets. But with up to 13 more military satellite launches open for competitive bidding in the next few years and ULA’s lucrative sole-source contract due to end in 2019, SpaceX is angling to become a majo launch service provider to the Department of Defense.

A month ago, SpaceX for the first time launched one of its previously flown rockets to send an SES communications satellite into orbit, a key step in Musk’s quest to demonstrate reusability and slash launch costs.

Excertps, SpaceX Launches US Spy Satellite on Secret Mission, Nails Rocket Landing, Space.com, May 1, 2017

Who is Team Telecom: internet cables and US security

A real-estate magnate is financing Google’s and Facebook Inc.’s new trans-Pacific internet cable, the first such project that will be majority-owned by a single Chinese company.  Wei Junkang, 56, is the main financier of the cable between Los Angeles and Hong Kong, a reflection of growing interest from China’s investors in high-tech industries.   It will be the world’s highest-capacity internet link between Asia and the U.S.

For Alphabet Inc.’s Google and Facebook, the undersea cable provides a new data highway to the booming market in Southeast Asia. Google and Facebook, which are blocked in China but seeking ways back in, declined to comment on market possibilities in China. Google said the project, called the Pacific Light Cable Network, will be its sixth cable investment and will help it provide faster service to Asian customers…

Backers hope to have Pacific Light operating in late 2018. The elder Mr. Wei’s company, Pacific Light Data Communication Co., will own 60%, Eric Wei said, and Google and Facebook will each own 20%. The project cost is estimated at $500 million, and the Chinese company hired U.S. contractor TE SubCom to manufacture and lay the 17-millimeter wide, 7,954-mile long cable…

The cable project requires U.S. government approval, including a landing license from the Federal Communications Commission and a review by Team Telecom, a committee of officials from the departments of defense, homeland security and justice….

Pacific Light will likely face higher scrutiny from Team Telecom due to the controlling interest by a foreign investor, said Bruce McConnell, global vice president of the EastWest Institute and a former senior cybersecurity official with the Department of Homeland Security.

Team Telecom rarely rejects a landing license application, Mr. McConnell said, but cable operators must agree to security terms.“The agreement is usually heavily conditioned to ensure that (U.S.) security concerns are met,” he said.

The terms often require an American operator of the cable to assist U.S. authorities in legal electronic surveillance, including alerting regulators if foreign governments are believed to have accessed domestic data, according to copies of agreements filed with the FCC. The U.S. landing party usually must also be able to cut off U.S. data from the international network if asked…

More than 99% of the world’s internet and phone communications rely on fiber-optic cables crisscrossing continents and ocean floors. That makes these cables critical infrastructure to governments and a target for espionage.

One of the Eric Wei’s businesses is a Chinese alternative to the QR code called a D9 code, which the company promotes as a “safe” alternative to foreign technology.

Excerpts from  China Firm Backs Asia-US Cable, Wall Street Journal, Mar. 16, 2017

Regulating the Cockpit: Investor-State Disputes

emile_claus_-_hanengevecht_in_vlaanderen

Investor-state dispute settlement (ISDS)cases+are decided by extrajudicial tribunals composed of three corporate lawyers. Although ISDS has existed for decades, its scope and impact has grown sharply in the last decade. As ISDS has been written into over 3,000 Bilateral Investment Treaties (BITs) and numerous Free Trade Agreements (FTAs), the opportunities for ISDS claims are huge and growing.

Originally justified as necessary to protect foreign corporate investments abroad from nationalization or expropriation by governments controlling national judiciaries, [it is claimed that] foreign corporations have used ISDS to change sovereign laws and undermine national regulations...Already, India, Indonesia and Ecuador have advised their treaty partners that they are considering ending their BITs because of ISDS. To reduce abuses, investors could be required to first prove discrimination in national courts before being allowed to proceed to ISDS arbitration. Alternatively, national courts could exercise judicial review over ISDS awards. Also, arbitrators could be required to be independent of the ISDS process, with set salaries, security of tenure and no financial ties to litigants while investor status for ISDS claims could be defined more strictly.

Excerpts from Jomo Kwame Sundaram ISDS Corporate Rule of Law, IPS, Dec. 1, 2016

+While ISDS is often associated with international arbitration under the rules of ICSID (the International Centre for Settlement of Investment Disputes of the World Bank), it often takes place under the auspices of international arbitral tribunals governed by different rules or institutions, such as the London Court of International Arbitration, the International Chamber of Commerce, the Hong Kong International Arbitration Centre or the UNCITRAL Arbitration Rules. ISDS has been criticized because the United States has never lost any of its ISDS cases, and that the system is biased to favor American companies and American trade over other Western countries, and Western countries over the rest of the world (wikipedia)

A Way of Life: Blowing Up Pipelines

image from http://www.nigerdeltaavengers.org/

Leaders from Nigeria’s Niger Delta called on President Muhammadu Buhari to pull the army out from the oil hub, order oil firms to move headquarters there and spend more on development to end militancy in the region.  Buhari met leaders from the southern swampland for the first time since militants started a wave of attacks on oil pipelines in January 2016 to push for a greater share of oil revenues.

At the meeting in the presidential villa in Abuja, Niger Delta leaders, joined by representatives of militant groups, gave Buhari a list of 16 demands to pacify the impoverished region where many say they do not benefit from the oil wealth…

The delegation leader said oil firms should move headquarters to the region so unemployed youths – who often work for militants – could get more jobs. Foreign firms active in Nigeria are often based in the commercial capital Lagos.  The Niger Delta leaders also asked for more funds for the development and an amnesty plan for former fighters which Buhari had planned to cut.

The attacks, which put four key export streams under force majeure, had led production to plunge to 1.37 million barrels per day in May, the lowest level since July 1988, according to the International Energy Agency (IEA), from 2.2 million barrels in January 2016.

Nigeria agreed on a ceasefire with major militant groups in 2009 to end an earlier insurgency. But previously unknown groups have since taken up arms after authorities tried to arrest a former militant leader on corruption charges.  Under a 2009 amnesty, fighters who lay down arms receive training and employment. However, of the $300 million annual funding set aside for this, much ends up in the pockets of “generals” or officials, analysts say – an endemic problem in a country famous for graft.

Any ceasefire would be difficult to enforce as militants are splintered into small groups of angry, young unemployed men even their leaders struggle to control.

A major group, the Niger Delta Avengers, had initially declared a ceasefire in August 2016 but then claimed another attack in October 2016 .

Excerpts from Niger Delta leaders want army out, Reuters, Nov. 2, 2016

Why the Rich Love Swiss Military Bunkers

camouflaged bunker Sufers, Switzerland. image from wikipedia

Deep in the Swiss Alps, next to an old airstrip suitable for landing Gulfstream and Falcon jets, is a vast bunker that holds what may be one of the world’s largest stashes of gold. The entrance, protected by a guard in a bulletproof vest, is a small metal door set into a granite mountain face at the end of a narrow country lane. Behind two farther doors sits a 3.5-ton metal portal that opens only after a code is entered and an iris scan and a facial-recognition screen are performed. A maze of tunnels once used by Swiss armed forces lies within.

The owner of this gold vault wants to remain anonymous for fear of compromising security, and he worries that even disclosing the name of his company might lead thieves his way…

Demand for gold storage has risen since the 2008 financial crisis. Many of the wealthy see owning gold as a hedge against the insecurity of banks and a reasonable investment at a time when markets are volatile and bank accounts and low-risk bonds pay almost no yield. It may also be a way to avoid the increasing scrutiny of tax authorities. In high-profile cases, U.S., French, and German prosecutors have gone after citizens of those countries with undeclared Swiss bank accounts.

Swiss storage operations such as these don’t have the same obligation that Swiss banks do to report suspicious transactions to federal regulators. Americans aren’t required under the U.S. Foreign Account Tax Compliance Act to declare gold stored outside financial institutions.
Of the roughly 1,000 former military bunkers still in existence across Switzerland, a few hundred have been sold in recent years, and about 10 are now storage sites holding gold as well as computer data, according to the Swiss defense department.

Few match the opulence of the airstrip setup, whose owner claims to run the largest store of gold for private clients—and the seventh-largest gold vault in the world. Near the runway sits the VIP lounge and a pair of luxurious apartments for clients. The walls of the apartments are lined with aged wood from Polish barns. South African quartzite was chosen for the floors to match the faded gray timber, and the amenities—bathroom mirror, TV screens—can retract into the ceiling, counter, or wall. The owner offers a place for clients to sleep and eat, because “many do not want to leave a paper trail of credit card receipts and passports” at hotels and restaurants…

Some miles away, Dolf Wipfli, the founder and chief executive officer of a different company, Swiss Data Safe, is one of the few operators willing to be interviewed about his business. The gold Swiss Data Safe stores for clients is kept in a mountainside bunker outside the hamlet of Amsteg.

Excerpts from Secret Alpine Gold Vaults Are the New Swiss Bank Accounts, Bloomberg, Sept. 30, 2016