‘Part of the discussion might be about the Quartet; part of it might be about making a relationship with the Faith Foundation; part of it might be about business, something for JP Morgan. I think Tony himself probably thinks, “Do you remember the very early quote, that everyone knows I’m a straight kind of guy?”’
– FORMER FINANCIAL ADVISER TO TONY BLAIR, SPEAKING TO AUTHORS.
When Tony Blair led a government, he had an army of diplomats, known as the Foreign Office, to keep him posted about the state of world events, about politicians who carried clout, about future trends and risks. Her Majesty’s diplomats are famous for their contacts and their analyses.
When Blair left government, he sought to build a global consultancy not unlike the government he had left. He turned himself into an international outsourcing company, doing at an international level something very similar to what companies such as Capita and Serco do at the domestic level. He looked to persuade governments that functions traditionally carried out by civil servants could with advantage be outsourced to him.
To do this, he sought the assistance of those in the private sector who could give him insight into the world. Just as Capita recruits former local-authority education administrators, many of these Blair thought he could use were former diplomats; and a surprising number worked, and indeed work, for one of two secretive consultancies. One is the private-investigative and due-diligence consultancy bearing the name Hakluyt. The second is the now defunct American agency called Monitor, a US financial consultancy founded by the management guru Michael Porter; its name crops up frequently in the Blair story. Those connected to these outfits are familiar with the murkier parts of Whitehall, the Pentagon or the State Department.
Former Blair employees now working for Hakluyt include Nick Banner, a former diplomat who worked for Tony Blair Associates; Varun Chandra, a financial expert who assisted Blair to set up his asset-management business, which was stillborn; and Jonathan Powell, Blair’s former chief of staff who is also described as a senior adviser to the spooks.
Cherie Blair and her law firm Omnia Strategy are also wedded to the private due-diligence sector for their international knowledge-gathering operations, and Tony Blair Associates has made much use of the US consultancy McKinsey.
Many international advisers to Blair have been sourced from Monitor, which collapsed amid financial mismanagement in 2012. These include Abdullah Al Asousi, a former TBA adviser in Kuwait; Naser Almutairi, who acts as Blair’s government consultant in Kuwait; and Khaled Jafar. The Monitor Group employed the retired British spy Sir Mark Allen, who had advised Blair on his dealings with Libya’s Muammar Gaddafi.
The reasons for Monitor’s failure are interesting to us, because they are an indication of the sort of business strategy the former Prime Minister admires. Forbes magazine explained its philosophy and why it fell:
In the theoretical landscape that Porter invented, all strategy worthy of the name involves avoiding competition and seeking out above-average profits protected by structural barriers. Strategy is all about figuring out how to secure excess profits without having to make a better product or deliver a better service.
It is a way of making more money than the merits of the product or service would suggest, or what those plain folks uncharitable to the ways of 20th Century business might see as something akin to cheating. However for several decades, many companies were ready to set aside ethical or social concerns and pay large consulting fees trying to find the safe and highly profitable havens that Porter’s theory promised …
[Porter’s] framework for the discipline of strategy isn’t just an epistemological black hole: in its essence, it’s antisocial, because it preserves excess profits, and it’s bad for business, because it doesn’t work. It accomplishes the unlikely feat of goading business leaders to do wrong both to their shareholders and to their fellow human beings …1
The importance to Blair of having his alumni in these agencies is that they serve as extensions of his network. Having worked for him, either in government or for TBA, they can be called on by him. They in turn will open to him a network of influential people.
When governments call on Blair, they want not only the man but his contacts. It works both ways, of course, so, when Hakluyt or any other consultancy needs a political door opened, it can call on Blair.
This partly explains the eye-watering amounts corporates and wealthy individuals will pay for Blair’s mystique, wrapped round, as it is, his promise of power and access. The fact that Blair does little more than pick up a phone to a contact he has acquired through a consultancy composed of warmed-up executives never reaches the ears of the deep-pocket who wants a call made or a back scratched.
Here’s how it could work. A government wants to sell a product to a NATO power, is looking for contacts in that country’s government and calls Blair. Blair in turn contacts Nick Banner at Hakluyt. Banner (an old Foreign Office hand who has advised Blair on foreign affairs) in turn picks up the phone to Javier Solana, a former secretary general at NATO. Solana happens to sit on the advisory board of Pelorus Research, part of Hakluyt. Solana knows someone in the relevant country’s defence ministry and advises the minister that the CEO of the company with the product will give him or her a call.
The Pelorus board is stuffed with former executives from India, Turkey, Japan, the US and the UK, each with their wealth of connections. If the deal goes through, each party in the chain receives a fee, depending on the time it puts in and the level of authority it holds. If it does not go through, parties remember who helped and how, for the next time they are needed.
Hakluyt makes secrecy its virtue. Its website contains no more than the four addresses of its offices in London, Singapore, New York and Tokyo. The London office is predictably in the West End, at 34 Upper Brook Street, W1K 7QS. The respectability of Hakluyt is little more than paper-thin. Details of its activities that leak out give the lie to the blue-chip consultancy, for the firm has been found spying on Greenpeace (Shell and BP have both admitted they hired the firm) and they worked for Enron, the fraudulent energy company.
These connections make Tony Blair more valuable than just any old run-of-the-mill former prime minister. The government of Kuwait values him highly. In January 2009, when Blair was in Kuwait as Middle East envoy for the Quartet, he met with the Emir and his advisers. But the former PM did not have anyone with him from the Quartet secretariat. Instead, he was accompanied by the new senior adviser at Tony Blair Associates, Jonathan Powell, although Blair was there on behalf of the Quartet and Powell, as we saw in Chapter 1, does not work for the Quartet but for Blair’s consultancy.
Shortly afterwards, TBA won a contract with the Kuwaiti regime to undertake an analysis of the Kuwaiti economy. It helped, certainly, that in Kuwait he was dealing with an old friend. Blair has enjoyed a longstanding relationship with the Emir of Kuwait. As Prime Minister, he held talks with Sheikh al-Sabah in May 2003, just weeks after Saddam Hussein was deposed in Iraq. Sheikh al-Sabah is eternally grateful for Blair’s role in bringing about the Iraq War and Saddam’s downfall.
Political analyst and economist Nasser Al Abolly, a leading Kuwaiti campaigner for democratic reform, spoke to Peter Oborne for a Channel 4 documentary – a risky thing to do in a country like Kuwait, where criticising the autocratic Emir is illegal. Al Abolly said he had heard from good sources that Blair had been paid 12 million dinars – about £27 million. Oborne asked, ‘How do you know he got paid that money?’ Al Abolly replied, ‘There is always talk about any money spent through the secret funds, circulating in Kuwait through people who are close to the Emir or through those who are involved in confidential transactions.’
Blair’s office said that the figure agreed ‘at that time’ was very significantly less than £27 million, but declined to disclose the lifetime value of the contract. That lifetime value may, of course, be significantly more than was paid for the report itself – as we will see, Blair has staff embedded in the Kuwaiti government.
Oborne asked, ‘Would £27 million have been good value for TBA’s report?’ Al Abolly replied, ‘Of course not.’
Whether the report really was worth £27 million or not is hard to judge, because nobody’s allowed to see it. But Al Abolly not only considers it exorbitant: he also told Oborne that much of Blair’s eventual report was not original and it had come up with many of the same recommendations as earlier reports on the future of Kuwait – an observation echoed by other Kuwaiti politicians.
Kuwait is thought to have commissioned an earlier report on much the same subject from the consultants McKinsey. It is not known whether Blair’s team had access to that report.
According to Peter Oborne, writing in the Daily Telegraph on 23 September 2011,
Mr Blair’s visit to the Emir of Kuwait, part of a wider Middle Eastern tour, was made on January 26, 2009. He was introduced to the Emir – who is said to feel a profound sense of gratitude to the former British Prime Minister because of his role in deposing Kuwait’s greatest enemy, Saddam Hussein.
Shortly afterwards, the Emir handed Tony Blair Associates a lucrative consultancy deal to provide advice on the future of the Kuwaiti economy. Nobody knows how much this deal – which was kept secret for two years – is worth. Because the TBA contract was handled by the Emir’s personal office, it is exempt from scrutiny by Kuwait’s normally rigorous financial regulatory body.2
The five-year plan is part of the government’s ‘Vision Kuwait 2035’. The report proposes reforms to the oil, trade and finance sectors, business environment, and health and education systems. Sheikh Nasser Sabah Al-Ahmad has said the report prepared by Blair’s team ‘analyses the major issues facing the country and presents detailed proposals’ for addressing them.
What came out of the Blair report? We don’t, of course, know, because we don’t know what was in the Blair report. But 798 construction projects worth 4.8 billion dinars were subsequently planned. The five-year plan was based on 330 policies that would be supported by 45 new laws. Five public sectors – housing, electricity, ports, warehouses and health insurance – would be privatised. The new plan will pump billions into prestige megaprojects such as the $77 billion City of Silk Bridge.
The City of Silk is a proposed urban area on the other side of Kuwait Bay from Kuwait City, designed to include a duty-free area beside a new airport, a large business centre, conference areas, environmental areas, athletic areas and areas that concentrate on media, health, education and industry, as well as tourist attractions, hotels, spas and public gardens.
The oil sector will also benefit from projects such as a new $14.5 billion oil refinery that was previously held up in parliament. There will also be a massive skyscraper, planned to top out at 1,001 metres in order to reflect the Arabian folk tale collection One Thousand and One Nights. The complex will be linked to Kuwait City by a 23.5-kilometre bridge across Kuwait Bay.
As a result of the contract, TBA has staff permanently based inside the office of the Kuwaiti Prime Minister. One of these has been Haneen Al-Ghabra, a Kuwaiti woman who was the Prime Minister’s communications manager. She was recruited by TBA in 2010. ‘I am responsible for ensuring message consistency at both a governmental level and for the Prime Minister himself,’ Al-Ghabra said. ‘Our department is responsible for branding, media relations, public perception and strategic communications.’3
After receiving her BA in communication in 2003 and her MA in public communication in 2004 from Washington University’s School of Communication – a course that included internships at the World Bank and the Middle East Institute – she worked in strategic communications. Al-Ghabra was recruited and trained for this position by the Office of Tony Blair. She told her alumnae bulletin that communication is a vital industry in society, particularly in her native Kuwait.
‘It’s an important facet of the world because it tells a certain public or culture what to think and what to perceive,’ she said. ‘It is a very powerful tool and unfortunately used in the wrong way in the Arab World.’
Al-Ghabra said the struggle she faced between the independence she felt and her return to the traditional values in Kuwait was difficult, and that her education inspired her to pursue a PhD in communication. Although there has been progress for women in the Arab world, such as women gaining the right to vote or serve in Parliament in Kuwait, she said there was still a long way to go.
‘We still lag behind, and women here face a vast glass ceiling like no other society,’ she said. ‘I think women need to be empowered through communication.’ Al-Ghabra has since omitted her employment at the Office of Tony Blair from her LinkedIn profile. Quite how helping the autocratic Emir with his PR will help to empower Kuwaiti women is not clear to us. Discrimination against women in the judicial and education sectors is still legally sanctioned, though the Kuwaiti courts seem to be taking a stand against it.
What has not come out of the Blair report is any improvement in the country’s lamentable record on democracy and human rights. We have no means of knowing whether the subject was covered in the report.
Blair’s old friend the Emir is not, of course, a democrat. This does not seem to trouble Blair – as we shall see in a later chapter, he has an idiosyncratic opinion about democracy.
Freedoms of speech and the press are protected under Articles 36 and 37 of the constitution, but only ‘in accordance with the conditions and in the circumstances defined by law.’ Under 2006 amendments to the press law, press offences are no longer criminal in nature; offenders now face steep fines instead. However, Kuwaiti law prohibits, and continues to demand jail for, the publication of material that insults God, the Prophet or Islam. The law also forbids criticism of the Emir, as well as disclosing secret or private information, and calling for the regime’s overthrow. Any citizen may press criminal charges against an author suspected of violating these bans.4
Human Rights Watch (HRW) notes that the elections held on 1 December 2012 were boycotted by Islamists, liberals and nationalists, and that Kuwait continues to exclude thousands of stateless people, known as Bidun, from full citizenship, despite their longstanding roots in Kuwaiti territory. ‘Authorities criminally prosecuted individuals for expressing nonviolent political opinions, including web commentary,’ says HRW.
On 28 October 2013, the Kuwaiti Court of Appeals upheld a ten-year prison sentence for a local blogger’s comments on Twitter. Hamad al-Naqi was sentenced for insulting the Prophet Mohammed and the kings of Saudi Arabia and Bahrain, among other charges.
Whether Mr Blair ever mentions these matters to his friend and client the Emir, we have no means of knowing.
By the normal standards of British public life, Blair would not have been allowed to accept this contract and keep his position as Quartet Representative. It would be seen as a conflict of interest. He is promoting peace in the region on the one hand, and making millions from an autocratic regime in the region on the other. This may be why the deal was kept private for as long as possible. The appointment did not come to light until 2010. It had been declared to the UK’s Advisory Committee on Business Appointments (ACOBA) but the committee agreed to keep it quiet at Kuwait’s request.
Meanwhile, Blair was setting up his Faith Foundation, and looking for a Muslim to sit on its advisory board to provide a semblance of balance, since other faiths were well represented. He was hampered by the fact that his many statements condemning Islam have made Islamic theologians wary of him.
It was the Kuwaiti government that provided the solution, by giving him Dr Ismail Khudr Al-Shatti, a prominent Kuwaiti politician. He is head of the Kuwaiti premier’s advisory committee at the time of writing, is the former Deputy Prime Minister of Kuwait and a former minister at the Ministry of Communications. Al-Shatti is also an expert in future studies, or trying to predict what the future holds.
He is not a cleric, or a theologian, or in any sense a prominent religious figure, even though, according to the Global Muslim Brotherhood Daily Watch, he is a prominent member of the Islamic Constitutional Movement (ICM), the Kuwaiti branch of the Muslim Brotherhood. This carried a story on 16 February 2009 which stated, ‘According to his resume, Ismail Khudr Al-Shatti has been a leader in the Islamic Constitutional Movement, the Kuwaiti branch of the Muslim Brotherhood. Mustafa Ceric is tied to the global Muslim Brotherhood through his membership in the European Council for Fatwa and Research (ECFR), headed by Brotherhood leader Youssef Qaradawi and by his participation in the UK-based “Radical Middle Way”, consisting of a wide range of associated scholars representing the global Muslim Brotherhood.’
The invasion of Iraq was the most controversial act of Blair’s premiership but it was excellent news for Kuwait. Blair enjoys much prestige in the country as a result, and he regularly visits it and receives a huge amount of money in fees from it for work that seems, to put it mildly, intangible. No doubt the decision to go to war was made from the highest motives, but it has certainly served, incidentally, to help enrich the man who drove through the decision with a level of energy, single-mindedness, ruthlessness and deception that surprised everyone at the time.
Critics of the Iraq War say the conflict was over access to oil rather than weapons of mass destruction. Blair has denied that he has any direct business interest in Iraq oil. In one sense, this is true, but it rather depends what you mean by ‘direct’. His relationship with the repressive monarchy of Abu Dhabi certainly brings him into close contact with Iraqi oil.
Abu Dhabi is the capital of the United Arab Emirates and the largest of its seven member principalities. Blair regularly visits Abu Dhabi for the Quartet, where he meets the Crown Prince, Sheikh Mohammed bin Zayed Al Nahyan, who succeeded his father in the job in 2004. Al Nahyan is also deputy supreme commander of the UAE armed forces, as well as being a member of the Supreme Petroleum Council and special adviser to the President of the UAE, who is his older brother, Khalifa bin Zayed Al Nahyan. He is also the head of the Mubadala Development Company, the main investment vehicle for the government of Abu Dhabi. And he is a director of the Abu Dhabi Investment Authority – the sovereign wealth fund of Abu Dhabi – head of the UAE offsets programme and head of the Abu Dhabi Education Council.
The Crown Prince is also a client of Tony Blair Associates. TBA provides ‘global strategic advice’ to Mubadala, which invests Abu Dhabi’s oil profits. Blair’s ‘government consultant’ covering Dubai and Abu Dhabi is Khaled Jafar, who worked for Monitor Consulting until it went bankrupt, and who was first assigned to Blair by Monitor.
Abu Dhabi is just along the Gulf coast from Iraq. The sovereign wealth fund gets most of its income from oil and gas and Blair was signed up while the fund was in talks to help develop a massive oilfield – not in Abu Dhabi, but in Iraq.
About the time Blair was signed up to advise Mubadala, Trade Arabia was reporting on 23 October 2009:
Occidental Petroleum Corporation (Oxy) is in negotiations with Abu Dhabi about its government investment fund, Mubadala, sharing in the US oil company’s stake in Iraq’s massive Zubair field, a top official said. ‘We’re going to share part of our share probably with Abu Dhabi and there may be others coming along,’ chief executive Ray Irani told analysts on a conference call to discuss Occidental’s third-quarter earnings.5
Oil and gas, aerospace and infrastructure are the three biggest revenue contributors. In 2010, as portfolio diversification continued, oil and gas contributed 38 per cent of the revenue, compared with 81 per cent in 2008. But oil and gas is still the largest revenue contributor of Mubadala.
On 3 January 2010 the Sunday Times reported that Mubadala was in negotiations to join a consortium of Western oil companies developing the Zubair oilfield in southern Iraq. More than £6 billion of investment was required for the project.6
Mubadala’s CEO is Khaldoon Al Mubarak, Emirati businessman and chairman of Manchester City FC.7 TBA receives a reported £1 million a year8 for this contract. Critics say it is incompatible with Blair’s position as the international peace envoy to the Middle East. Mubadala’s interests also include oil exploration contracts in Libya, where, as we shall see, Blair’s involvement is close and longstanding.
Blair also drops by Abu Dhabi regularly, apparently to discuss religious affairs and climate change as well as Middle East peace.Those, at any rate, are the only subjects for discussion that are mentioned in his public announcements of his engagements. These do not give any indication of any discussions on business conducted with the Crown Prince on behalf of TBA. However, surely the Crown Prince expects some face time for his £1 million a year. When does he get it, if not when Blair is visiting ostensibly to discuss peace or religion?
He went to Abu Dhabi towards the end of July 2007, meeting the Crown Prince ‘as part of a tour of the region.’ The Crown Prince hosted a dinner in Blair’s honour. Gulf News in its announcement gives the Crown Prince his full title: ‘His Highness General Sheikh Mohamed bin Zayed Al Nahyan is the Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council.’9
The Crown Prince was trained at the elite British military academy Sandhurst before commanding his country’s air force and advising his father, the late Sheikh, on security matters. According to Human Rights Watch, the human-rights situation in the country has worsened under his rule: ‘Authorities arbitrarily detain civil society activists, holding them in secret, and harassing and intimidating their lawyers. An independent monitor found significant problems in the treatment of migrant workers on the high-profile Saadiyat Island project in Abu Dhabi, identifying the payment of illegal recruitment fees as a key concern.’
Whether this matter is ever mentioned in Blair’s meetings with the Crown Prince, we do not, of course, know. But he’s had plenty of chances to mention them. We find him back there four months later, to meet the Crown Prince again ‘as part of his regional tour in quest for peace in the region,’ reports Gulf News.10
Towards the end of March 2009 we find him in Abu Dhabi telling an invited audience that now is the moment when the international community must act decisively on the Palestine–Israel conflict.11 A couple of weeks later, in mid-April, there he was again, urging investors to donate money to the Palestinian economy and saying that the West Bank is ready for business, as well as holding private talks with the Crown Prince.12
Then we find him visiting the place not as Quartet envoy but as patron of the Tony Blair Faith Foundation. The TBFF website reports:
In an historic event, former British Prime Minister, the Right Honourable Tony Blair, gave a speech at Abu Dhabi Men’s College today about the ground-breaking multi-faith work the Tony Blair Faith Foundation is undertaking around the world.
Mr Blair announced that the Higher Colleges of Technology is the first associate university partner from the Middle East to join the Tony Blair Faith Foundation’s Faith and Globalisation Initiative.13
Which Tony Blair keeps visiting Abu Dhabi? The patron of the TBFF? The Middle East peace envoy? Or the principal of Tony Blair Associates? It generally seems to be the last-named who benefits most from his visits.
But it would be unfair to end this chapter without quoting, albeit anonymously, from the only former senior member of the staff of Tony Blair Associates who talked to us about these matters, albeit under conditions of strict anonymity, and defended Blair’s role as Quartet Envoy.
This person, whose background is financial, said, ‘He wants to be relevant politically more than he wants money. And the Quartet role is very important to him. What people say is, “How can you be doing business with Arab governments, around the Gulf and at the same time do your job in the Quartet?” Now, the way I rationalise that is actually quite simple: his role in the Quartet is an economic development role more than anything else. And the Gulf Arabs have never been particularly fond of the Palestinians, and certainly they have not given them that much money. And it wasn’t helped by Arafat making this disastrous call of the First Gulf War by supporting Saddam – do you remember? The Gulf rulers absolutely adore Tony.
‘And, you know, he’s a very endearing and charming chap, so they’re particularly fond of him. Now, his contribution to the development of the economy of the West Bank is he has got Gulf money coming to the West Bank which wasn’t there before. Whereas some people might say it’s a conflict of interest that you have someone who has business relationships with Gulf rulers as well as having a political role in the Middle East, in practical terms it’s been helpful …
‘And part of the discussion might be about the Quartet; part of it might be about making a relationship with the Faith Foundation; part of it might be about business, something for JP Morgan. I think Tony himself probably thinks, “Do you remember the very early quote, that everyone knows I’m a straight kind of guy?”’
1 Forbes, 20 November 2012: http://www.forbes.com/sites/stevedenning
/2012/11/20/what-killed-michael-porters-monitor-
group-the-one-force-that-really-matters/3/
2 Daily Telegraph, 23 September 2011: http://www.telegraph.co.uk/
news/politics/tony-blair/8784596/On-the-desert-
trail-of-Tony-Blairs-millions.html
3 http://www.american.edu/soc/success/
haneen-communication.cfm
4 http://www.freedomhouse.org/template.
cfm?page=251&year=2010
5 Trade Arabia, 23 October 2009: http://beta.tradearabia.net/news/OGN_169308.html
6 The Sunday Times, 3 January 2010: http://www.timesonline.co.uk/tol/
news/world/iraq/article6973974.ece
7 http://en.wikipedia.org/wiki/Khaldoon_Al_Mubarak (as of 1 February 2015)
8 The Sunday Times, 3 January 2010: http://www.timesonline.co.uk/tol/
news/world/iraq/article6973974.ece
9 Gulf News, 26 July 2007: http://gulfnews.com/news/gulf/
uae/government/mohammad-bin-zayed-
makes-short-visit-to-qatar-1.191313
10 Gulf News, 23 November 2007: http://gulfnews.com/news/gulf/
uae/government/abdullah-stresses-
joint-efforts-for-peace-1.213572
11 Gulf News, 21 March 2009: http://gulfnews.com/only-two-state-
solution-to-middle-east-issue-says-blair-1.58709
12 Gulf News, 15 April 2008: http://gulfnews.com/news/gulf/
uae/government/uae-s-shaikh-abdullah-receives-
middle-east-special-envoy-tony-blair-1.98099
13 http://www.tonyblairfaithfoundation.org/newsroom/entry/hct-links-arms-with-tony-blair-faith-foundation-to-develop-new-multi-f/ [page since removed]