Notes and References

Prologue

    1 This account is drawn from Daniel Bergner, Soldiers of Light (London: Penguin Books, 2004); Lansana Gberie, A Dirty War in West Africa (London: Hurst & Company, 2005); and reports compiled by Human Rights Watch.

Introduction

    1 SIPRI Yearbook 2010 (Oxford: OUP, 2010); Sipri Updates; US Census Program, ‘World POPClock Projection’, figure for 1 January 2011, http://www.census.gov/ipc/www/popclockworld.html; and GDP based on CIA World Factbook, ‘World Economy’, GDP (purchasing power parity) of $74.48tn, https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html.

    2 ‘FY 2012 Base Defense Budget Represents a Turning Point’, Center for Strategic and Budgetary Assessments, 14 February 2011, http://www.csbaonline.org/publications/2011/02/fy-2012-base-defense-budget-represents-a-turning-point/.

    3 Joe Roeber, ‘Hard-Wired for Corruption’, Prospect, 28 August 2005.

    4 Quoted in Anthony Sampson, The Arms Bazaar (London: Hodder and Stoughton, 1977) and often ascribed to the American arms dealer Sam Cummings.

    5 Andrew Feinstein, After the Party (Jeppestown: Jonathan Ball, 2007; London: Verso, 2009); Andrew Feinstein, Paul Holden and Barnaby Pace, ‘Corruption and the Arms Trade: Sins of Commission’, in Sipri Yearbook 2011 (Oxford: OUP, 2011).

    6 Roeber, ‘Hard-Wired for Corruption’.

    7 Bloomberg, 21 April 2011, http://www.bloomberg.com/news/2011-04-21/lockheed-martin-f-35-operating-costs-may-reach-1-trillion.html. The quotation is from an interview the author conducted in May 2011 with a former Pentagon weapons analyst and designer, Pierre Sprey.

    8 C. Wright Mills, The Power Elite (Oxford: OUP, 1956).

    9 Farewell Address, 17 January 1961.

  10 Chalmers Johnson, The Sorrows of Empire (London: Verso, 2004); Nick Turse, The Complex (London: Faber and Faber, 2008).

  11 I will use the American spelling ‘defense’ when referring to the American Department and the British ‘defence’ in all other cases.

  12 Turse, Complex.

  13 David Bromwich, ‘The Co-President at Work’, New York Review of Books, 20 November 2008, Vol. LV, No. 18.

  14 Gary K. Busch, ‘The Chinese Military-Commercial Complex: The Globalisation of the Chinese Military Corporations’ (unpublished).

  15 Gary K. Busch, ‘A Spectre is Haunting Europe: Putin, the Siloviki and Vampire Communism’ (unpublished).

  16 See Chapter 19 for details.

  17 ‘EU Arms Exports to Libya: Who Armed Libya?’, dataset spreadsheet downloaded from www.guardian.co.uk.

  18 See, for instance, David Hambling, Weapons Grade: Revealing the Links between Modern Warfare and Our High-Tech World (London: Constable, 2005).

  19 Discussion with Professor James Stewart, former Appeals Counsel, Office of the Prosecutor, International Criminal Tribunal for the former Yugoslavia, and leading academic in the area of corporate responsibility for international crimes.

Section I: The Second-Oldest Profession

1. Sins of Commission

    1 George Bernard Shaw, Major Barbara (1907; Harmondsworth: Penguin Books, 1945, 1960).

    2 Ibid.

    3 Anthony Sampson, The Arms Bazaar (London: Hodder and Stoughton, 1977), pp. 51–2.

    4 This account of Zaharoff’s life and times is drawn from a wide range of sources, including Sampson, ibid; Donald McCormick, Pedlar of Death (London: MacDonald, 1965); Bernt Engelmann, The Weapons Merchants (London: Elek Books, 1968); Richard Lewinsohn, Sir Basil Zaharoff (London: Victor Gollancz, 1929); Robert Neumann, Zaharoff, the Armaments King (London: Allen & Unwin, 1938); H. C. Engelbrecht and F. C. Hanighen, Merchants of Death (New York: Dodd Mead & Company, 1934); Guilles Davenport, Zaharoff, High Priest of War (Boston: Lothrop Lee and Shepard Company, 1934); George Tallas, Peddler of Wars (AuthorHouse, 2007). For more information on Zaharoff’s life and times see www.theshadowworld.com.

    5 London Sunday Chronicle, 29 November 1936.

    6 Engelmann, Weapons Merchants, p. 182.

    7 Ibid., p. 184.

    8 Ibid., p. 183.

    9 Ibid.

  10 Ibid., pp. 183–4.

  11 Evidence given at an official inquiry, quoted in McCormick, Pedlar of Death, p. 74.

  12 McCormick, Pedlar of Death, pp. 77–9 and 88.

  13 Ibid., pp. 62–8.

  14 Quoted in Sampson, Arms Bazaar, p. 54.

  15 Ibid.

  16 Engelmann, Weapons Merchants, p. 185.

  17 Lewinsohn, Sir Basil Zaharoff, p. 102.

  18 McCormick, Pedlar of Death, p. 118.

  19 Ibid., p. 120.

  20 Ibid., p. 143.

  21 Quoted in Sampson, Arms Bazaar, p. 57.

  22 Engelmann, Weapons Merchants, p. 186.

  23 Ibid.

  24 Ibid.

  25 This section draws extensively on the authoritative account of Sampson, Arms Bazaar.

  26 Royal Commission 1935–6, Minutes, p. 544, Q3989.

  27 Quoted in Sampson, Arms Bazaar, p. 70.

  28 Summarized from the League of Nations’ Six Points, quoted in Sampson, Arms Bazaar, p. 71.

  29 J. D. Scott, Vickers: A History (London: Weidenfeld and Nicolson, 1962), p. 144.

  30 Sampson, Arms Bazaar, p. 76.

  31 Ibid., p. 77.

  32 Ibid.

  33 Chicago Daily News, 3–5 August 1933.

  34 Sampson, Arms Bazaar, p. 78.

  35 Quoted in ibid., p. 79.

  36 Sampson, Arms Bazaar, p. 79.

  37 Ibid., p. 83.

  38 Royal Commission 1935–6, Minutes, p. 536, B3866.

  39 Ibid., pp. 300–370, B3866.

  40 Drawn from Sampson, Arms Bazaar.

  41 This account of the post-Second World War arms trade draws on Sampson, Arms Bazaar, among others.

  42 J. L. Sutton and G. Kemp, Arms to Developing Countries 1945–65 (London: Institute for Strategic Studies, 1966), Graphs 1 and 2.

  43 Sampson, Arms Bazaar, p. 108.

  44 See Plowdon Report on the British Aircraft Industry (London: HMSO, 1965), Cmnd 2853.

  45 Robert L. Perry, A Dassault Dossier (Rand Corporation, 1973), from which this portrait is drawn.

  46 Charles Gardner, British Aircraft Corporation: A History (London: B. T. Batsford Ltd, 1981), p. 16, and from whom this analysis is drawn.

  47 Ibid., p. 278.

  48 ‘Rolls-Royce and BAE in secret plea to Downing Street’, Sunday Times, 16 March 2008, http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article3558484.ece.

  49 History section of Heckler and Koch website, http://www.heckler-koch.de/History.

  50 ‘Milestone for BAE as its trade with America outstrips MoD business’, The Times, 10 August 2007, http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article2231494.ece.

  51 Robert Lacey, Inside the Kingdom (London: Hutchinson, 2009).

  52 ‘Saudi Arabia’, US Energy Information Administration, Independent Statistics and Analysis, http://www.eia.doe.gov/cabs/Saudi_Arabia/Background.html. There is some doubt as to whether the levels are as high as claimed. See John Vidal, ‘How much oil does Saudi Arabia actually have?’, Guardian Environment Blog, 15 February 2011, http://www.guardian.co.uk/environment/blog/2011/feb/15/oil-saudi-arabia-reserves?INTCMP=SRCH, and Paul Mobbs, Energy Beyond Oil (Leicester: Matador Publishing, 2005).

  53 ‘Russia becomes leading oil producer, BP says’, BBC, 9 June 2011, http://www.bbc.co.uk/news/10275183.

  54 CIA World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html.

  55 Daniel Yergin, The Prize: The Epic Quest for Oil, Money and Power (New York: Simon & Schuster, 1992), p. 300.

  56 ‘Saudi Arabia’, in Amnesty International Report 2009, http://thereport.amnesty.org/en/regions/middle-east-north-africa/saudi-arabia.

  57 Sampson, Arms Bazaar, interview with Edwards, p. 158.

  58 John Stonehouse, Death of an Idealist (London: W. H. Allen, 1975), p. 50.

  59 Sampson, Arms Bazaar, p. 159, citing ‘Multinational Hearings, part 12, 693, 697’.

  60 Ibid., Chapter 11.

  61 ‘BAE in Saudi Arabia’, based upon a BAC document that can be found at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/28/ch05doc01.pdf.

  62 ‘How to Sell an Air Force’, II, World in Action, Granada TV, 26 January 1976.

  63 Quoted in Mark Phythian, The Politics of British Arms Sales since 1964 (Manchester: Manchester University Press, 2000), p. 87.

  64 Document published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/28/ch05doc01.pdf.

  65 According to the Guardian, the documents FCO 8/2346, FCO 8/2347 and FCO 8/2345 showing this dispute are being held secretly by the Foreign Office. ‘Officials claim that disclosure of the documents would damage relations between Britain and Saudi Arabia, “not least because of the competing claims between Mr Edwards and Prince [Abdul Rahman] but also they contain information about Saudi Arabia’s defence capacities”.’ According to the Foreign Office, ‘Prince Abdul Rahman’s claim was struck out for want of prosecution. Mr Edwards’s claim was withdrawn by agreement in 1975’, http://www.guardian.co.uk/world/2007/jun/08/bae32.

  66 Sampson, Arms Bazaar, p. 162.

  67 UK Foreign and Commonwealth Office, PRO: FO 371/185496, Jeddah to FO, 1 August 1966.

  68 Sampson, Arms Bazaar, p. 162.

  69 ‘BAE in Saudi Arabia’, Guardian, ‘The BAE Files’, http://www.guardian.co.uk/baefiles; and Phythian, Politics of British Arms Sales, p. 213.

  70 ‘BAE in Saudi Arabia’, letter from Douglas Henley to Frank Cooper on 12 January 1977, Guardian, ‘The BAE Files’, http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch05doc04.pdf.

  71 The government auditor, Sir Douglas Henley, found that ‘The transactions pass through the Ministry accounts.… The total consultants’ fees seem likely to exceed £30m.… The auditors examining [BAC’s] costs on the ministry’s behalf have stated they have no means of ascertaining the identity of the recipients. It seems to me that the ministry’s agreement to special provisions in regard to the vouching of BAC’s payments, coupled with their exercising a judgement on the level of commission acceptable as “admissible costs”, involves the ministry in these arrangements’, ibid.

  72 ‘The unlovable Saudis’, Willie Morris’s Valedictory Dispatch, Guardian, ‘The BAE Files’, http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch04doc01.pdf.

  73 ‘The unlovable Saudis’, letter from Willie Morris to H. J. L. Suffield, 11 February 1970, Guardian, ‘The BAE Files’, http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/28/ch04doc03.pdf.

  74 ‘The unlovable Saudis’, dispatch from the British embassy at Jeddah to David Owen, 3 May 1977, Guardian, ‘The BAE Files’, http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/28/ch04doc04.pdf.

  75 ‘The culture of bribery that became government policy’, Guardian, 8 June 2007, ‘The BAE Files’, http://www.guardian.co.uk/world/2007/jun/08/bae10; Cooper Directive at http://image.guardian.co.uk/sysfiles/Guardian/documents/2007/06/01/ch08doc09.

  76 In response to a Freedom of Information request on the subject, the following answer was received on 18 March 2010:

First, I can inform you that we have found no record of any further revisions of the Cooper Directive following the revision on 9th November 1994 which was issued by Sir Christopher France GCB, then Permanent Secretary of the Ministry of Defence, to the Head of the Defence Export Services Organisation (DESO). The changes made in 1994 reflected changes in the role of DESO, which differed in a number of respects from the Defence Sales Organisation, and which by then, neither engaged agents nor paid commissions.

  77 James Callaghan, quoted in ‘Britain blocks reform’, Guardian, 8 June 2007, ‘The BAE Files’, http://www.guardian.co.uk/baefiles/page/0,,2095820,00.html.

  78 Guardian, 23 October 1975; Sunday Telegraph, 26 October 1975.

  79 Financial Times, 16 September 1977.

  80 ‘BAE in Saudi Arabia’, minute from the Head of DSO (H. J. L. Suffield) to Frank Cooper, 23 June 1976, Guardian, ‘The BAE Files’, http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch05doc06.pdf.

  81 ‘BAE in Saudi Arabia’, Guardian, ‘The BAE Files’, http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch05doc06.pdf.

  82 Ibid., http://www.guardian.co.uk/baefiles/page/0,,2095814,00.html.

2. The Nazi Connection

    1 John R. Boker, ‘Report of Initial Contacts with General Gehlen’s Organization by John R. Boker Jr., 1 May 1952’, in C. Ruffner (ed.), Forging an Intelligence Partnership: CIA and the Origins of the BND, 1945–1949, produced for CIA History Staff, Center for the Study of Intelligence and European Division, Directorate of Operations (1999; released May 2002).

    2 ‘Statement of Gerhard Wessel on Development of the German Organisation’, undated, in Ruffner (ed.), Forging an Intelligence Partnership.

    3 Ibid.

    4 Boker, ‘Report of Initial Contacts’.

    5 Ibid.

    6 Neal Ascherson, ‘Our Man in Pullach’, New York Review of Books, 1 June 1972.

    7 ‘Eine “Zweite Entnazifizierung”’, Frankfurter Allgemeine, 18 March 2010.

    8 Ken Silverstein, Private Warriors (New York: Verso, 2000), p. 110.

    9 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  10 Ibid.; and ‘Veterans’ Attitude towards Rearmament’, 22 August 1951, Information Memorandum No. 84, Office of the United States High Commissioner for Germany: Office of Intelligence – Reports and Analysis Division.

  11 ‘Veterans’ Attitude towards Rearmament’ (see n. 10 above).

  12 Silverstein, Private Warriors, p. 111. After the SRP won a shock 11 per cent of the vote in Lower Saxony, German courts, fearful of its potential impact, banned it as a subversive organization.

  13 Ibid., p. 112.

  14 ‘A mini-Krupp in Kenwood’, Washington Post, 28 April 1968.

  15 Silverstein, Private Warriors, p. 118.

  16 George Thayer, The War Business: The International Trade in Armaments (New York: Simon & Schuster, 1970), Chapter 7. Available at http://alexanderhamiltoninstitute.org/lp/Hancock/CD-ROMS/GlobalFederation%5CWorld%20Trade%20Federation%20-%20105%20-%20The%20War%20Business.html.

  17 Silverstein, Private Warriors, p. 118.

  18 Ibid.

  19 In reality, Mertins ran a number of companies with slight variations on the name of Merex. The initial companies established in 1963 operated in the names of Merex AG (Bonn), which was controlled by Merex AG in Vevey, Switzerland. Another branch of Merex, Deutsche Merex GmbH, was also opened at a later stage. Merex Corp was the US incarnation of Merex. Over the next three decades Mertins shifted which companies were directly associated with different transactions, each company becoming the ‘main’ Merex company at various points. For ease of understanding, we refer to Mertins’s European presence as Merex and his US presence as Merex Corp. See Executive Sessions of the Senate Foreign Relations Committee, together with Joint Sessions with the Senate and Services Committee, Vol. XIX, 90th Congress, 1967, www.fas.org.

  20 ‘A mini-Krupp in Kenwood’, Washington Post, 28 April 1968.

  21 Anthony Sampson, The Arms Bazaar (London: Hodder and Stoughton, 1977), p. 57.

  22 ‘Samuel Cummings – Obituary’, The Economist, 9 May 1998; and ‘Samuel Cummings, 71, trader in weapons on a grand scale’, The New York Times, 5 May 1998.

  23 ‘Samuel Cummings, 71, trader in weapons’, The New York Times, 5 May 1998.

  24 Russell Warren Howe, Weapons: The International Game of Arms, Money and Diplomacy (New York: Doubleday, 1980) pp. 407–8.

  25 Tom Gervasi, Arsenal of Democracy II: American Military Power in the 1980s and the Origins of the Cold War with a Survey of American Weapons and Arms Exports (London: The Book Service, 1981), pp. 120–21.

  26 Thayer, War Business, Chapter 3.

  27 Silverstein, Private Warriors, p. 120; ‘Prozente für Pfadfinder’, Der Spiegel, 23 March 1987; ‘Fall Merex: Rechtsbruch durch Tarnung’, Der Spiegel, 22 December 1975.

  28 Thayer, War Business, Chapter 3; ‘Prozente für Pfadfinder’, Der Spiegel, 23 March 1987; Gervasi, Arsenal of Democracy II, pp. 50–51.

  29 ‘Prozente für Pfadfinder’, Der Spiegel, 23 March 1987.

  30 Thayer, War Business, Chapter 3; ‘Prozente für Pfadfinder’, Der Spiegel, 23 March 1987; Gervasi, Arsenal of Democracy II, pp. 50–51.

  31 Thayer, War Business, Chapter 3.

  32 ‘Prozente für Pfadfinder’, Der Spiegel, 23 March 1987.

  33 Thayer, War Business, Chapter 3.

  34 Silverstein, Private Warriors, p. 120; and ‘Fall Merex: Rechtsbruch durch Tarnung’, Der Spiegel, 22 December 1975.

  35 Silverstein, Private Warriors, pp. 123 and 130.

  36 ‘A mini-Krupp in Kenwood’, Washington Post, 28 April 1968.

  37 Ibid.

  38 Howe, Weapons, p. 409.

  39 Ibid.

  40 Silverstein, Private Warriors, pp. 121–2.

  41 ‘Lieber Christian Putsch’, Jungen Welt, 16 July 1998.

  42 See O. Abegunrin, Nigerian Foreign Policy under Military Rule, 1966–1999 (Westport: Praeger, 2003), pp. 50–53.

  43 K. J. Beattie, Egypt during the Sadat Years (London: Palgrave Macmillan, 2000), pp. 124–5.

  44 Silverstein, Private Warriors, pp. 125–7.

  45 See A. Delgado, Counterfeit Reich: Hitler’s Secret Swindle (Frederick, Md: PublishAmerica, 2006), p. 147.

  46 Hilton M. Linklater and Neal Ascherson, The Nazi Legacy: Klaus Barbie and the International Fascist Connection (London: Henry Holt & Co, 1985), p. 238.

  47 Silverstein, Private Warriors, pp. 125–6.

  48 ‘Special Article: Freikorps Deutschland’, US Army Intelligence Report, undated. Regraded as unclassified by USAINSCOM, 13 January 1997.

  49 Ibid.

  50 Silverstein, Private Warriors, p. 127.

  51 Ibid.

  52 Ibid., pp. 127–8.

  53 P. Levenda, Unholy Alliance: A History of the Nazi Involvement with the Occult (New York: Continuum, 2002), p. 319. Townley was later found guilty in the US of assassinating Orlando Letelier, a liberal economist and prominent political figure who had served as Salvadore Allende’s ambassador to the US.

  54 ‘Secrets of ex-Nazi’s Chilean fiefdom’, BBC News, 11 March 2005.

  55 ‘Fugitive Nazi cult leader arrested’, Guardian, 12 March 2005.

  56 Letter from G. Bausch (Merex Corp) to Tongsun Park, 8 December 1969, in Investigation into Korean–American Relations: Appendixes to the Report of the Subcommittee on International Organizations of the Committee on International Relations, US House of Representatives (Washington: Govt Printing Office, 1978), p. 343.

  57 ‘Park sentenced to 5 years in U.N. oil-for-food bribery scandal’, Washington Post, 23 February 2007.

  58 Howe, Weapons, p. 409.

  59 Silverstein, Private Warriors, p. 132.

  60 Howe, Weapons, p. 406.

  61 ‘Die Oktoberfest-Connection’, Jungle World, No. 48, 22 November 2000.

  62 ‘Waffenexporte unter SPD-Regie’, Die Tageszeitung, 22 December 1986.

  63 Silverstein, Private Warriors, pp. 133–4.

  64 Financial Statements: Merex AG, 1 January 1980.

  65 Silverstein, Private Warriors, p. 137; and interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  66 Evidence submitted in Merex AG. v. Fairchild Weston Systems Inc., United States Southern District of New York, 1992.

  67 ‘Prozente für Pfadfinder’, Der Spiegel, 23 March 1987.

  68 Letter from Gerhard Mertins to Zhao Fei (NORINCO), 10 January 1984, Merex v. Fairchild Weston Systems Inc., trial records.

  69 Silverstein, Private Warriors, pp. 134–5.

Section II: Nice Work If You Can Get It

3. The Saudi Connection

    1 Sunday Times, 20 August 2006.

    2 According to the Foreign Secretary in 1968, Michael Stewart, this had long been a tactic of the French: ‘the French … policy of support for the Arabs has been largely designed to enable them to profit in this way’. PRO: CAB 148/38/OPD(68)/66, ‘Sale of Chieftain Tanks to Israel’, note by the Secretary of State for Foreign and Commonwealth Affairs.

    3 Flight, 8 December 1984.

    4 Flight, 16 February 1985; Financial Times, 12 March 1985.

    5 Flight, 22 April 1985.

    6 Financial Times, 22 April 1985.

    7 Observer, 10 May 1992.

    8 David Ottaway, The King’s Messenger: Prince Bandar Bin Sultan and America’s Tangled Relationship with Saudi Arabia (New York: Walker & Company, 2008), p. 67, citing interview with Prince Bandar, 4 March 1996.

    9 Observer, 19 March 1989.

  10 The Times, 18 September 1985.

  11 Chrissie Hirst, The Arabian Connection: The UK Arms Trade to Saudi Arabia (London: CAAT, 2000).

  12 Tim Webb, Bribing for Britain, CAAT Goodwin Paper No. 5, October 2007, p. 13.

  13 Mark Phythian, British Arms Sales since 1964 (Manchester: Manchester University Press, 2000), p. 221.

  14 Ibid., p. 222.

  15 Jane’s Defence Weekly, 5 February 1994, p. 27.

  16 Guardian, 8 May 1986; and Hirst, Arabian Connection.

  17 Luke Harding, David Leigh and David Pallister, The Liar: The Fall of Jonathan Aitken (London: Penguin Books, 1997), p. 64.

  18 Financial Times, 27 November 1989; and Sunday Times, 10 December 1989.

  19 Anthony H. Cordesman, Saudi Arabia: Guarding the Desert Kingdom (Boulder, Colo., and London: Westview Press, 1997), p. 157.

  20 William Simpson, The Prince: The Secret Story of the World’s Most Intriguing Royal Prince, Bandar Bin Sultan (New York: HarperCollins, 2006), p. 147.

  21 Quoted in Mark Hollingsworth and Paul Halloran, Thatcher’s Fortunes: The Life and Times of Mark Thatcher (Edinburgh: Mainstream, 2005), pp. 199–200.

  22 Phythian, British Arms Sales, p. 225.

  23 Sunday Telegraph, 25 November 1990; Phythian, British Arms Sales, p. 226 and notes at p. 256.

  24 Jane’s Defence Weekly, 1 September 1990.

  25 Sunday Times, 30 September 1990.

  26 The Times, 25 October 1991.

  27 ‘Secrets of Al Yamamah’, in the Guardian, ‘The BAE Files’, http://www.guardian.co.uk/baefiles/page/0,,2095831,00.html.

  28 Jane’s Defence Weekly, 6 May 1995, p. 33.

  29 Independent, 16 November 1988; Sunday Times, 18 January 1990; BAE Quarterly, Autumn 1989.

  30 Terry Macalister, ‘Profile: Dick Evans’, Guardian, 5 February 2010, ‘The BAE Files’, http://www.guardian.co.uk/world/2010/feb/05/dick-evans-bae-arms-deal.

  31 Ibid.

  32 Ibid.

  33 Elsa Walsh, ‘The Prince’, The New Yorker, 24 March 2003. Also at http://www.saudi-us-relations.org/international-relations/prince-bandar.html.

  34 ‘King Abdul Aziz Al Saud’, The Saudi Network, http://www.the-saudi.net/al-saud/abdulaziz.html.

  35 Walsh, ‘The Prince’.

  36 Ibid.

  37 Ottaway, King’s Messenger, p. 25.

  38 Ibid., p. 26.

  39 Simpson, The Prince, citing interview with General Faisal Mifgai in Marrakech, Morocco, 26 June 2004, p. 15.

  40 Ottaway, King’s Messenger, p. 26, citing interview with Prince Bandar, 28 March 1996.

  41 Simpson, The Prince, p. 16.

  42 Ibid., p. 21, citing interview with Sgt Ken Adams in Leasington, Lincolnshire, 14 January 2004.

  43 Ibid., p. 26, citing interview with John Waterfall in Brighton, Sussex, 26 February 2006.

  44 Ibid., p. 27, citing Cranwell Course Report on Flight Cadet Sultan prepared by his flying instructor, Flight Lieutenant Tony Yule.

  45 Ibid., pp. 33–4.

  46 Ibid., p. 34.

  47 David Leigh, ‘Arms and the Man’, New Statesman, 28 June 2007, http://www.newstatesman.com/books/2007/06/prince-bandar-saudi-mandela.

  48 Simpson, The Prince, p. 34.

  49 Ibid., p. 378, citing William Gildea, ‘Saudi Prince Bandar has cowboy spirit’, Washington Post, 20 June 1994.

  50 Ibid., p. 41.

  51 Ottaway, King’s Messenger, p. 28, citing interview with Prince Bandar, 28 March 1996.

  52 Ibid., p. 23.

  53 Ibid., p. 24.

  54 Ibid., p. 24.

  55 Ibid., p. 25.

  56 Ibid., p. 29, citing ‘Memorandum: F-15s to Saudi Arabia – A Threat to Peace’.

  57 Ibid., p. 30.

  58 Ibid.

  59 For further reading on the enormous power of the Israel lobby and its impact on US foreign policy, including arms sales, see John J. Mearsheimer and Stephen M. Walt, The Israel Lobby and US Foreign Policy (New York: Farrar, Straus and Giroux, 2007).

  60 Ottaway, King’s Messenger, p. 31, citing Daily Diary, John C. West Papers, ‘Sunday, April 23, 1978’.

  61 Ottaway, King’s Messenger, p. 33, citing interview with Prince Bandar, 28 March 1996.

  62 Ibid.; Bandar went on to say that the Times printed the story the next day with the headline ‘Reagan supports Carter on F-15s to Saudi Arabia’. However, according to Ottaway, there is no record that the Los Angeles Times or any other major US paper ran any such story. There is also no mention of the event in John West’s daily diary.

  63 Ibid., p. 35, citing interview with Prince Bandar, 30 November 2001.

  64 Ibid., p. 31, citing letter from John C. West to Prince Fahd bin Abdul Aziz, 6 June 1978, John C. West Papers.

  65 Ibid., p. 39, citing interview with Prince Bandar, 28 March 1996.

  66 Ibid., p. 40, citing John C. West, Daily Diary, ‘Wednesday, April 19, 1978’.

  67 Ibid., citing ‘Memorandum for: Dean Robert Osgood, the Johns Hopkins University, School of Advanced International Studies. From: David E. Long, 18 May, 1979’, Box 10, John C. West Papers.

  68 Ibid., p. 41, citing John C. West, Daily Diary, ‘Monday, Sept 15, 1980’.

  69 State Department, ‘Saudi Regional Role’, briefing paper, May 1977, Box 36, Staff Offices Counsel, Lipshutz’s Files, Middle East: Saudi Arabia 10/77–6/78, [CF O/A 712] Jimmy Carter Library.

  70 Ottaway, King’s Messenger, p. 42.

  71 Ibid., citing ‘John C. West letter to President Carter’, 6 July 1979, Box 10, John C. West Papers.

  72 Ibid., p. 44, citing John C. West, Daily Diary, ‘Friday, December 14 1978’.

  73 Ibid., p. 45, John C. West, handwritten note, 8 June 1998, attached to ‘Draft. Letter to Crown Prince Fahd from President Carter’, 3 April 1980, Box 10, John C. West Papers.

  74 Harding, Leigh and Pallister, The Liar, p. 36.

  75 Ottaway, King’s Messenger, p. 47, citing John C. West, Daily Diary, ‘Sunday, Sept. 28, 1980’.

  76 Ibid., p. 47, ‘Saturday, October 4, 1980’.

  77 Ibid., p. 48, ‘Monday, Oct. 13, 1980’.

  78 Ibid., p. 50, citing interview with Prince Bandar, 28 March 1996.

  79 Ronald Reagan, An American Life (New York: Simon & Schuster, 1990), p. 410.

  80 Richard F. Grimmett, Executive-Legislative Consultation on U.S. Arms Sales, 1982, pp. 33–5.

  81 Ottaway, King’s Messenger, p. 52, citing Melinda Beck and John J. Lindsay, ‘Trying to Patch the AWACS Deal’, Newsweek, 5 October 1981.

  82 Ibid., p. 53, citing Associated Press, 25 September 1981, Adams, ‘Saudi Prince, Reagan, Senators discussing AWACS compromise’; United Press International, 25 September 1981.

  83 Ibid., pp. 50 and 57, citing interview with Prince Bandar, 28 March 1996.

  84 Ibid., p. 60.

  85 Israeli ambassador Moshe Arens, interviewed by Patrick Tyler, in A World of Trouble: America in the Middle East (London: Portobello Books, 2009), p. 304.

  86 Lawrence Walsh, Firewall: The Iran–Contra Conspiracy and Cover-Up (New York: W. W. Norton & Co, 1997), p. 19.

  87 Ibid., p. 390.

  88 Quoted in Steve Coll, The Bin Ladens: Oil, Money, Terrorism and the Secret Saudi World (London: Penguin Books, 2008), p. 10.

  89 Tyler, World of Trouble.

  90 Ibid., pp. 312–13.

  91 Walsh, Firewall, p. 390.

  92 Ibid., p. 391.

  93 Ibid., p. 392.

  94 Ottaway, King’s Messenger, p. 61.

  95 Leigh, ‘Arms and the Man’.

  96 Simpson, The Prince, pp. 119–20.

  97 Quoted in Ottaway, King’s Messenger, p. 77, citing Samantha Sparks, ‘Angola: Saudi aid to rebels may be “brother” of Irangate scandal’, IPS-Inter Press Service, 1 July 1987, from which this account is drawn.

  98 Bob Woodward, Veil: Secret Wars of the CIA, 1981–87 (New York: Simon & Schuster, 1987), p. 398.

  99 Ibid.

100 Ottaway, King’s Messenger, p. 63, citing interview with William Wilson, 4 January 2002.

101 Simpson, The Prince, p. 100.

102 Leigh, ‘Arms and the Man’.

103 Woodward, Veil, pp. 395–8.

104 Bill Moyers, ‘Target America’, Frontline, PBS, 4 October 2001.

105 Ottaway, King’s Messenger, p. 64, citing ‘Spotlight: Bandar Survives Casey Book, But Saudi Arms Battle Looms’, Mideast Markets, 12 October 1987.

106 Simpson, The Prince, p. 123.

107 Robert Lacey, Inside the Kingdom (London: Hutchinson, 2009), p. 194.

108 Ottaway, King’s Messenger, p. 79, citing interview with Prince Bandar, 30 November 2001.

109 Ibid., p. 81, citing interview with Prince Bandar, 4 March 1996.

110 Quoted in Hollingsworth and Halloran, Thatcher’s Fortunes, p. 212.

4. In Defence of Humanity

    1 This and many of the insights in this section were gleaned in a personal interview with der Hovsepian, Amman, Jordan, 14 May 2010.

    2 Merex records show that in 1980 der Hovsepian was listed as owing the company DM18,000. Financial Statements: Merex AG, 1 January 1980.

    3 Financial Statements: Deutsche Merex GmbH, 1 January 1980; and interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

    4 Statuten: Deutsche Merex GmbH, UR Nr. 1254/1990, dated 12 June 1990; Statuten: Deutsche Merex GmbH, UR Nr. 1022/1990, dated 15 May 1990; Amstgericht, Merex AG and Gut Buschoff Hotel und Sport Center AG, 9 April 1979–12 March 1996, retrieved from German Company Registries (Deutsche Handelsregister), 18 February 2010.

    5 Ibid.

    6 Company Register for Thomasberg und Sportanlagen Betriebs Gesellschaft, accessed 8 June 2010. Also see: ‘Kur Investor für eine Fünf-Sterne-Herberge in Thomasberg’, General-Anzeiger, 16 January 2004.

    7 Steve Coll, Ghost Wars: The Secret History of the CIA, Afghanistan, and Bin Laden, from the Soviet Invasion to September 10, 2001 (London: Penguin Books, 2004), pp. 71–3.

    8 Ibid., p. 79.

    9 BBC News, 20 July 2005; and ‘Prince Turki Al-Faisal resigns as Saudi Ambassador to US’, in Arab News, 13 December 2006.

  10 Coll, Ghost Wars, pp. 71–3.

  11 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  12 Ibid.

  13 Ibid.

  14 Interrogation of Lorenzo Mazzega, Tribunale Civile e Penale di Venezia, 3 February 1994.

  15 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995.

  16 Ibid.

  17 Interrogation of Lorenzo Mazzega, Tribunale Civile e Penale di Venezia, 3 February 1994; ‘Report on Angelos Scordas/Merex’, Bavarian State Office of Criminal Investigation, Düsseldorf, Case Ref.: Ausl 142/96, Vol. M-4581-96, 11 January 2005.

  18 C. Carr, The Security Implications of Microdisarmament, The Counterproliferation Papers Future Warfare Series No. 5 (USAF Counterproliferation Center (Air War College), 2000), p. 14. See also Commission of Inquiry into Alleged Arms Transactions between Armscor and One Eli Wazan and Other Related Matters (The ‘Cameron Commission’), 15 June 1995, Section 4.

  19 Commission of Inquiry into Alleged Arms Transactions (see n. 18 above).

  20 Ibid.

  21 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995.

  22 Arms transfers to all parties of the Yugoslav conflict were banned under the terms of UN Resolution 713. See S/RES/171/1991, available for download from www.un.org.

  23 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995. See also Beverly Overseas SA v. Privredna Banka Zagreb, 28 March 2001, Swiss Federal Court Case 4C.172/200. Available for download from www.bger.ch.

  24 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995.

  25 See ‘The woman who paid $2bn into foreign accounts’, Nacional (Croatia), 7 November 2006. The involvement of Martinovic was outlined by Terezija Barbaric, who had acted as the adviser to Martinovic while he was director of Privredna Bank and during his stint as Finance Minister. Barbaric recalled that roughly $2bn had been transferred to suspicious foreign bank accounts while she and Martinovic were in office.

  26 Commission of Inquiry into Alleged Arms Transactions (see n. 18 above).

  27 Ibid.

  28 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995; and interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  29 Promissory Note: Privredna Bank Zagreb, Bearer: Instersystems Inc, Signed Martin Katicic and Jozo Martinovic, 11 May 1992. Submitted in evidence in the matter of Beverly Overseas SA v. Privredna Banka Zagreb, 28 March 2001, Swiss Federal Court Case 4C.172/200. The document can be viewed at www.theshadowworld.com.

  30 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010, and Statement of Account: Intersystems Inc., addressed to H. E. Joso Martinovic, 4 August 1992, submitted as evidence in the matter of Beverly Overseas SA v. Privredna Banka Zagreb, 28 March 2001, Swiss Federal Court Case 4C.172/200. Available for download from www.bger.ch.

  31 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995.

  32 Ibid.

  33 Interrogation of Lorenzo Mazzega, Tribunale Civile e Penale di Venezia, 3 February 1994.

  34 Ibid. and interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  35 Interrogation of Lorenzo Mazzega, Tribunale Civile e Penale di Venezia, 3 February 1994.

  36 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  37 Ibid.

  38 He chose Switzerland as the original promissory note stated that it was governed by Swiss law.

  39 Beverly Overseas SA v. Privredna Banka Zagreb, 28 March 2001, Swiss Federal Court Case No. 4C.172/2000. Available for download from www.bger.ch. See also B. Oxman, J. Kokott and S. Patrick, ‘International Decisions – Beverly Overseas SA v. Privredna Banka Zagreb’, American Journal of International Law, Vol. 97 (2003), No. 1, pp. 177–8.

  40 Interrogation of Nicholas Oman, Campania Region of Carabinieri (Vico Equense Station), Cheque to Cheque Investigation, 7 November 1996.

  41 Ibid.

  42 Fax from Interpol Canberra to Interpol Vienna, subject: ‘Oman, Nicholas Born 28/10/1943’, Ref: IP/0167/92/2-42, 4 March 1994.

  43 ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998, pp. 455–6.

  44 B. A. Cook (ed.), Europe Since 1945: An Encyclopaedia, Vol. I (New York: Garland, 2001), p. 433.

  45 Ibid. See also P. Ginsborg, Italy and Its Discontents: Family, Civil Society, State, 1980–2001 (New York: Palgrave Macmillan, 2003), p. 144.

  46 Cook, Europe Since 1945, p. 433.

  47 Interrogation of Nicholas Oman, Campania Region of Carabinieri (Vico Equense Station), Cheque to Cheque Investigation, 7 November 1996.

  48 Ibid.

  49 Interrogation of Jornej (given as ‘Jerney’) Cepin, Interpol: Rome, 26 July 1996, in ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998.

  50 Interrogation of Nicholas Oman, Campania Region of Carabinieri (Vico Equense Station), Cheque to Cheque Investigation, 7 November 1996.

  51 Arrest order issued by Interpol Ljubljana, 10 February 1998. Ref: 0225-19-92IP-7456/96.

  52 Interrogation of Jornej (given as ‘Jerney’) Cepin, Interpol: Rome, 26 July 1996, in ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998. See also Republic of Liberia Truth and Reconciliation Commission: Volume III (Appendices), Economic Crimes and the Conflict: Exploitation and Abuse, 2009, para. 115.

  53 Interrogation of Nicholas Oman (Additional Explanatory Notes), Campania Region of Carabinieri (Vico Equense Station), Cheque to Cheque Investigation, 19 November 1996.

  54 Interrogation of Lorenzo Mazzega, Tribunale Civile e Penale di Venezia, 3 February 1994.

  55 Table 1: ‘List of individuals and corporate entities that the TRC holds responsible for economic crimes’, in Republic of Liberia Truth and Reconciliation Commission: Volume III (Appendices), Economic Crimes and the Conflict: Exploitation and Abuse, 2009.

  56 Interrogation of Nicholas Oman, Campania Region of Carabinieri (Vico Equense Station), Cheque to Cheque Investigation, 18 November 1996.

  57 Ibid.

  58 Ibid.

  59 This was a credible origin as NATO forces had made use of the Blowpipe, which had been manufactured in the UK and featured in that country’s war in the Falklands.

  60 Invoice Nr. 91716 from Orbal Marketing Services (Croatia) to the Ministry of Defence (Croatia), Att: Josip Vukina.

  61 Memorandum from Criminal Investigation Directorate, Ministvo zo Notransje Zadeve, Ljubljana Slovenia to Interpol Rome, Subject: ‘Oman, Nicholas – Trafficking with Weapons and Military Equipment – Transfer of Data’, 3 July 1996.

  62 Ibid. See also ‘War diplomacy – controversial armaments trade’, Aim (Slovenia), 29 April 1998.

  63 Interrogation of Fulvio Leonardi, 5 June 1996, in ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998.

  64 Nacional (Croatia), No. 352, 13 August 2002.

  65 ‘An old tale of swindle resurfaces in Bosnia’, The New York Times, 14 December 1997; and ‘Main news summary’ provided by the NATO Stabilization Force in Bosnia, 26 May 2004, available for download from www.nato.int.

  66 See ‘Serbs threaten to unleash deadly “secret weapon”’, Independent, 15 February 1994.

  67 ‘The world: here comes the clown. No joke’, The New York Times, 6 November 1994; Sunday Times, 16 June 1996; Delo (Ljubljana), 6 April 1996; Kurier, 6 December 1996; and Süddeutsche Zeitung, 12 June 1996.

  68 Nacional (Croatia), No. 352, 13 August 2002.

  69 ‘Verwicklung Schirinowskijs vermutet Material für Atomwaffen’, Süddeutsche Zeitung, 12 June 1996; ‘Die Kardinal und die Dealer’, Focus, 18 July 1996.

  70 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995.

  71 ‘An old tale of swindle resurfaces in Bosnia’, The New York Times, 14 December 1997.

  72 Interrogation of Franco Giorgi, Torre Annunziato Investigation: Cheque to Cheque, 25 June 1995; and Statement by Lainovic Branislav, 17 November 1995, in ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998.

  73 Ibid.

  74 Statement by Lainovic Branislav, 17 November 1995, in ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998.

  75 Nacional (Croatia), No. 352, 13 August 2002.

  76 Commission of Inquiry into Alleged Arms Transactions (see n. 18 above).

  77 Ibid.

  78 Ibid.

  79 Ibid.

  80 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  81 Commission of Inquiry into Alleged Arms Transactions (see n. 18 above).

  82 Ibid.

  83 Ibid.

  84 Ibid.

  85 Ibid.

  86 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

5. The Ultimate Deal or the Ultimate Crime?

    1 Fidelity National Financial, ‘Riggs Bank signs long-term agreement with Fidelity Information Services’, http://fnf.client.shareholder.com/releasedetail.cfm?releaseid=112302.

    2 George Washington University, ‘The PNC Riggs Collection’, http://www.gwu.edu/gelman/spec/exhibits/pnc_riggs/dc_community.html.

    3 Ibid.

    4 Professional Risk Managers’ International Association, ‘Riggs Bank Summary’, www.google.co.uk/url?sa=t&source=web&cd=8&sqi=2&ved=0CE4QFjAH&url=http%3A%2F%2Fprmia.org%2Fpdf%2FCase_Studies%2FRiggs_Bank_Short_version_April_2009.pdf&rct=j&q=riggs%20bank%20us%20embassies&ei=x9h0bKiM4PBtAb4sZiEDg&usg=AFQjCNFh9qJza3KIbusrlpYvpdNMBDmR7A&cad=rja.

    5 David Montgomery, ‘The Bank of Dad’, in the Washington Post, 23 April 2004, http://www.washingtonpost.com/wp-dyn/articles/A62544-2004Jun22.html.

    6 Kathleen Day, ‘Web site cites Bush–Riggs link’, in the Washington Post, 15 May 2004, http://www.washingtonpost.com/wp-dyn/articles/A28396-2004May14.html.

    7 Newsweek, 2 December 2002.

    8 ‘Riggs Bank fined $25M for Saudi transactions’, USA Today, 14 May 2004, http://www.usatoday.com/money/industries/banking/2004-05-14-riggs-fine_x.htm; and Timothy L. O’Brian, ‘At Riggs Bank, a tangled path led to scandal’, The New York Times, 19 July 2004, http://query.nytimes.com/gst/fullpage.html?res=9507E4DC133AF93AA25754C0A9629C8B63&pagewanted=1.

    9 The 9/11 Commission Report, 22 July 2004, p. 498, http://govinfo.library.unt.edu/911/report/911Report_Notes.pdf.

  10 Professional Risk Managers’ International Association, ‘Riggs Bank Summary’ (see n. 4 above).

  11 ‘The CIA and Riggs Bank’, Slate, 7 January 2005.

  12 O’Brian, ‘At Riggs Bank, a tangled path led to scandal’ (see n. 8 above).

  13 ‘Black Money’, http://www.pbs.org/wgbh/pages/frontline/blackmoney/view/, PBS, transcript available at http://www.pbs.org/wgbh/pages/frontline/blackmoney/etc/script.html. Documents pertaining to this transaction are available at www.theshadowworld.com.

  14 ‘Secrets of Al Yamamah’, Guardian, http://www.guardian.co.uk/baefiles/page/0,,2095831,00.html.

  15 Panorama, BBC, 11 June 2007; Guardian, 7–12 June 2007; and copies of selected Riggs Bank accounts of the Saudi Embassy and Prince Bandar.

  16 ‘Secrets of Al Yamamah’ (see n. 14 above).

  17 David Leigh and Rob Evans, ‘BAE accused of secretly paying £1bn to Saudi prince’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/07/bae1.

  18 M. Hollingsworth and P. Halloran, Thatcher’s Fortunes: The Life and Times of Mark Thatcher (Edinburgh: Mainstream, 2005).

  19 This is drawn from Tim Webb, ‘Bribing for Britain’, CAAT Goodwin Paper No. 5, October 2007, p. 12, referencing the author’s interview with Said Aburish, a Saudi specialist, for his book The Armour Plated Ostrich (West Wickham: Comerford & Miller, 1998), p. 101.

  20 Christopher Hope, ‘Twenty years of smokescreen over Saudi deal’, Daily Telegraph, 21 June 2006, http://www.telegraph.co.uk/finance/2941537/Twenty-years-of-smokescreen-over-Saudi-deal.html.

  21 Guardian, 21 October 1985.

  22 Ibid.

  23 Letter of 10 October 1985 from P. F. Ricketts, Private Secretary at FCO to Charles Powell (10 Downing Street) and Richard Mottram (MoD), published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/06/01/ch07doc05.pdf.

  24 Hansard, 18 October 1994, Column 235, http://www.publications.parliament.uk/cgi-bin/newhtml_hl?DB=semukparl&STEMMER=en&WORDS=saudi%20arabia%20agent&ALL=Saudi%20Arabia%20agents&ANY=&PHRASE=&CATEGORIES=&SIMPLE=&SPEAKER=&COLOUR=red&STYLE=s&ANCHOR=Debate-8_spnew9&URL=/pa/cm199394/cmhansrd/1994-10-18/Debate-8.html#Debate-8_spnew9.

  25 David Leigh and Rob Evans, ‘Subcontractor corruption’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/07/bae16.

  26 David Pallister, Richard Norton-Taylor and Owen Bowcott, ‘Rolls-Royce in firing line on Saudi deal’, Guardian, 7 February 1998, http://www.guardian.co.uk/world/1998/feb/07/bae; and Leigh and Evans, ‘Subcontractor corruption’ (see n. 25 above).

  27 Hansard, 24 January 1996, Column 455, http://www.publications.parliament.uk/pa/cm199596/cmhansrd/vo960124/debtext/60124-51.htm.

  28 Ibid.; Gerald James, In the Public Interest (London: Little Brown and Company, 1995), pp. 119–20; http://www2.warwick.ac.uk/fac/soc/law/pg/prospective/iel/modules/intl/mat/corruption_roleprivatesector.doc; The Statement of Facts for 786 F.Supp. 65 (1992) Thomas F. DOOLEY, Plaintiff, v. UNITED TECHNOLOGIES CORP., et al., Defendants.Civ. A. No. 91-2499. United States District Court, District of Columbia, 10 March, 1992; http://scholar.google.co.uk/scholar_case?case=494935081094814999&hl=en&as_sdt=2&as_vis=1&oi=scholarr.

  29 Richard Norton-Taylor and David Pallister, ‘Millions in secret commissions paid out for Saudi arms deal’, Guardian, 4 March 1999, http://www.guardian.co.uk/politics/1999/mar/04/uk.davidpallister1.

  30 Ibid.

  31 Luke Harding, David Leigh and David Pallister, The Liar: The Fall of Jonathan Aitken (London: Guardian Books, 1999), p. 166.

  32 ‘We did it their way’, Daily Telegraph, 10 June 2007, http://www.telegraph.co.uk/news/uknews/1554076/We-did-it-their-way.html.

  33 Ibid.

  34 This account is drawn from a number of meetings with David Leigh and Rob Evans, culminating in a formal interview on 26 April 2010.

  35 Quoted in Harding, Leigh and Pallister, The Liar, p. xiii.

  36 PRO: WO 32/21301. Minute of meeting between Lord Shackleton and Sir Donald Stokes, 7 July 1965.

  37 The National Archives: AVIA 65/1670 Minutes of Permanent Secretary’s meeting, 14 July 1965.

  38 The National Archives: AVIA 65/1670 Stokes Report.

  39 Nicola Stanbridge, ‘Arms deal fraud allegations’, Today, BBC Radio 4, 12 November 2003, http://www.bbc.co.uk/radio4/today/reports/politics/bae_20031112.shtml.

  40 Ibid.

  41 Ibid.

  42 David Leigh and Rob Evans, ‘Diplomat linked to BAE slush fund claims’, Guardian, 13 September 2003, http://www.guardian.co.uk/uk/2003/sep/13/saudiarabia.armstrade.

  43 David Leigh and Rob Evans, ‘Homes for executive’s mistress bought from BAE fund’, Guardian, 15 September 2003, http://www.guardian.co.uk/uk/2003/sep/15/freedomofinformation.saudiarabia.

  44 A solicitor’s letter written to Winship in 1993 stated: ‘You have instructed me that the purpose of the transaction is that British Aerospace charter the boat for Mr Nasser.’ However, there was no evidence that Prince Turki was aware of the transaction, and the Guardian assumed that his name was used without his knowledge. Ibid.

  45 Letter from SFO to Kevin Tebbit (MoD), 8 March 2001, published by the Guardian at http://docs.google.com/viewer?a=v&q=cache:eSt1Q2DKs5oJ:image.guardian.co.uk/sys-files/Guardian/documents/2003/09/11/wright1.pdf+kevin+tebbit+bae&hl=en&gl=uk&pid=bl&srcid=ADGEESjK6Eu7Z-milphQhvMi10VLa4D_vs9X_pDaC_N0NWydmgPgdtvjTRBZq-KmSZz3quJoiDvt1cYdtagKRGdC5vGMkEyI0Ljz8AkhLOdasz8QGcxM92hnifEp0ahZmuJaGYiCR4LX&sig=AHIEtbQ--7DSCLbCfoHmEF5JjKUek2gBiA.

  46 Letter from Kevin Tebbit to Robert Wardle of 12 September 2003, ‘Robert Lee International Ltd – British Aerospace’, published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2003/10/10/doc_12sept2003.pdf.

  47 Stanbridge, ‘Arms deal fraud allegations’ (see n. 39 above). An attempt by the BBC to find other points at which BAE corruption was raised with Tebbit revealed that he was approached by the US authorities regarding BAE deals for Gripens in the Czech Republic, but took it to be an attack on British interests. It appears that Tebbit again accepted Dick Evans’s assurances that any allegations were baseless. He related the US concerns in a meeting with Michael Lester, the Group Legal Adviser of BAE Systems, the Acting Head of Defence Export Services and another official of the Defence Export Services Organisation, Miss A. L. Tourle, regional marketing director. (Response to BBC FOI from the MoD, 4 January 2007, published at http://docs.google.com/viewer?a=v&q=cache:2BeNfPKedXgJ:www.bbc.co.uk/blogs/opensecrets/TebbitWayne.pdf+kevin+tebbit+bae&hl=en&gl=uk&pid=bl&srcid=ADGEESjnuZrv8h8kq9kuQr9ET37gSqDLMmObghi6-yfoKwnhaxnjwsX0nFj33aXxZAh9aTCzkJiitzcEcZ15Rhw4upTGm6XWylmUQRCp8VvGwp8VaBntnp1dv9DsrDaxVahO9vyu3Pkr&sig=AHIEtbQGzvxfbymSKq-6yqekriKGjcHFnA.)

  48 Stanbridge, ‘Arms deal fraud allegations’ (see n. 39 above).

  49 David Leigh and Rob Evans, ‘Arms firm’s £60m slush fund’, Guardian, 4 May 2004, http://www.guardian.co.uk/uk/2004/may/04/politics.saudiarabia.

  50 ‘Prince Turki, the RAF Wing Commander, a secret £60m BAE slush fund … and me’, Daily Mail, 7 April 2007.

  51 Leigh and Evans, ‘Arms firm’s £60m slush fund’ (see n. 49 above).

  52 Ibid.

  53 Ibid.

  54 David Leppard, ‘BAE paid for luxury Saudi honeymoon’, Sunday Times, 17 June 2007, http://www.timesonline.co.uk/tol/news/uk/article1942914.ece.

  55 Trail of the Dove, video, Al Jazeera, 13 May 2007, http://www.youtube.com/watch?v=lnPrbCUrHEU.

  56 ‘Black Money’ (see n. 13 above); David Leigh and Rob Evans, ‘BAE chairman named in “slush fund” files’, Guardian, 5 May 2004, http://www.guardian.co.uk/uk/2004/may/05/armstrade.politics; ‘BAE chief linked to slush fund’, Guardian, 5 October 2004, http://www.guardian.co.uk/uk/2004/oct/05/saudiarabia.armstrade; and Michael Robinson, ‘BBC lifts the lid on secret BAE slush fund’, BBC News, 5 October 2004, http://news.bbc.co.uk/1/hi/business/3712770.stm.

  57 Leigh and Evans, ‘Homes for executive’s mistress’.

  58 Leigh and Evans, ‘Arms firm’s £60m slush fund’ (see n. 49 above).

  59 David Leigh and Rob Evans, ‘Dismay at BAE as fraud office comes calling’, Guardian, 4 November 2004, http://www.guardian.co.uk/business/2004/nov/04/themilitary.freedomofinformation.

  60 David Leigh and Rob Evans, ‘MoD official took BAE gifts’, Guardian, 6 April 2004, http://www.guardian.co.uk/uk/2004/apr/06/politics.military.

  61 ‘Black Money’ (see n. 13 above).

  62 Interview with David Leigh and Rob Evans, London, 26 April 2010; and ibid.

  63 CIA World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/vi.html.

  64 Letter to Rob Evans (Guardian) from BVI Financial Services Commission giving details of Red Diamond Trading Ltd, published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch08doc05.pdf.

  65 Redacted documents showing a money transfer from Red Diamond account at Lloyds in London to Red Diamond Account at UBS in Zurich, published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch08doc06.pdf.

  66 G. Murphy, British Serious Fraud Office, Affidavit submitted as Annexure JDP-SW12 in the High Court of South Africa (Transvaal Provincial Division) in the matter of Ex Parte the National Director of Public Prosecutions (applicant) re: an application for issue of search warrants in terms of Section 29(5) and 29(6) of the National Prosecuting Authority Act, No. 32 of 1998, as amended (2008), Annexure B.

  67 Novelmight Limited, Directors Report and Financial Statements, 31 December 1996, published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch08doc02.pdf.

  68 Letter to Rob Evans (Guardian) from BVI Financial Services Commission giving details of Novelmight Limited, published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch08doc04.pdf.

  69 ‘BAE’s secret money machine’, Guardian, ‘The BAE Files’, http://www.guardian.co.uk/baefiles/page/0,,2095840,00.html; and David Leigh and Rob Evans, ‘BAE accused of hiding cash paid to win deals’, Guardian, 5 December 2003.

  70 Ibid.

  71 Ibid.

  72 Ibid.

  73 ‘BAE’s secret money machine’ (see n. 69 above).

  74 Leigh and Evans, ‘BAE accused of hiding cash’, Guardian, 5 December 2003.

  75 Ibid.

  76 Letter of 24 January 2006 to Rob Evans (Guardian) from BVI Financial Services Commission regarding Poseidon Trading Investments Ltd, published by the Guardian at http://image.guardian.co.uk/sys-files/Guardian/documents/2007/05/29/ch08doc07.pdf; ‘BAE’s secret money machine’ (see n. 69 above).

  77 Leigh and Evans, ‘BAE accused of hiding cash’, Guardian, 5 December 2003.

  78 ‘BAE’s secret money machine’ (see n. 69 above).

  79 Nicholas Gilby, an amateur researcher with the pressure group Campaign against the Arms Trade (CAAT), unearthed documents in the British Archives that revealed the price of the Tornado jets had been artificially inflated by 32 per cent to allow for an original £600m in commission payments. An attempt to sell Tornadoes to the kingdom was first undertaken in 1984 by James Blyth, the head of DSO at the time. It was proposed that the UK would buy back the Lightning aircraft previously sold to Saudi Arabia for £1.5m each and sell twenty Tornadoes for £16.3m each and twenty-four Hawk jet trainers at £4m each. (Confidential record of meeting of January 1986 regarding negotiations for Al Yamamah deal, published by the Guardian at http://image.guardian.co.uk/sys-files/Politics/documents/2006/10/27/J5_40RiyadhreportconclusionJan86.pdf.) The price reflected a notable, but not unreasonable, mark-up on the £13.2m price that the RAF was paying. But by the time the Al Yamamah deal was signed the Tornado aircraft would cost £21.5m each and the other fifty-two Tornadoes £25.3m per plane. (Ibid.; and David Leigh and Rob Evans, ‘Kew’s al-Yamamah files’, Guardian, 7 July 2007, http://www.guardian.co.uk/world/2007/jun/07/bae.nationalarchives.)

  80 Ibid.

  81 ‘Nobbling the police’, Guardian, ‘The BAE Files’, http://www.guardian.co.uk/baefiles/page/0,,2098531,00.html; ‘Black Money’ (see n. 13 above).

  82 Sunday Times Rich List 2009, http://business.timesonline.co.uk/tol/business/specials/rich_list/rich_list_search/.

  83 Andrew Alderson, ‘“Do I deserve to be labelled a Syrian terrorist?”’, in the Daily Telegraph, 18 March 2001, http://www.telegraph.co.uk/news/uknews/1326942/Do-I-deserve-to-be-labelled-a-Syrian-terrorist.html.

  84 Giles Worsley, ‘The English country house rises once more’, Daily Telegraph, 2 November 2004, http://www.telegraph.co.uk/news/uknews/1475634/The-English-country-house-rises-once-more.html.

  85 David Hellier, ‘The Mark Thatcher Affair: Saudi contact named as key player: David Hellier profiles the alleged middle-man who became a friend of the Thatcher family’, Independent, 10 October 1994, http://www.independent.co.uk/news/uk/the-mark-thatcher-affair-saudi-contact-named-as-key-player-david-hellier-profiles-the-alleged-middleman-who-became-a-friend-of-the-thatcher-family-1441988.html?cmp=ilc-n.

  86 Alderson, ‘“Do I deserve to be labelled a Syrian terrorist?”’ (see n. 83 above).

  87 David Leigh and Rob Evans, ‘Wafic Said’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/07/bae17.

  88 ‘Mr Wafic Rida Saïd gives £25 million to Oxford’, Campaign for Oxford University, 28 May 2008, http://www.campaign.ox.ac.uk/news/news/wafic_rida_sad.html.

  89 John Arlidge, ‘The secretive billionaire who began in a kebab shop’, Evening Standard, 1 December 2006.

  90 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 204.

  91 James, In the Public Interest, p. 107.

  92 Alderson, ‘“Do I deserve to be labelled a Syrian terrorist?”’ (see n. 83 above).

  93 Ibid.

  94 Valerie Grove, ‘My battle with the dons’, The Times, 13 November 1996.

  95 James, In the Public Interest, pp. 62 and 106–7, referencing the Sunday Times, 9 October 1994, and Gary Murray, Enemies of the State (London: Simon & Schuster, 1993).

  96 Wafic Said, Guardian, 7 June 2007.

  97 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 207.

  98 Tim Kelsey and Peter Koenig, ‘Scott seeks Iraq link to Al-Yamamah: Inquiry to ask for details of arms shipments’, Independent, 12 October 1994, http://www.independent.co.uk/news/uk/scott-seeks-iraq-link-to-alyamamah-inquiry-to-ask-for-details-of-arms-shipments-tim-kelsey-and-peter-koenig-report-1442401.html?cmp=ilc-n.

  99 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 216.

100 Marie Colvin and Adrian Levy, ‘“An opportunist on a gravy train” – how Thatcher made his millions’, Sunday Times, 9 October 1994.

101 Stephen Castle, Paul Routledge and Brian Cathcart, ‘Mark Thatcher accused: sources say he got 12m pounds from arms deal signed by his mother’, Independent, 9 October 1994, http://www.independent.co.uk/news/mark-thatcher-accused-sources-say-he-got-12m-pounds-from-arms-deal-signed-by-his-mother-1441851.html.

102 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 215.

103 Sunday Times, 9 October 1994.

104 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 208.

105 Colvin and Levy, ‘“An opportunist on a gravy train”’, Sunday Times, 9 October 1994.

106 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 208.

107 James, In the Public Interest, pp. 105–6.

108 Hollingsworth, and Halloran, Thatcher’s Fortunes, p. 220.

109 James, In the Public Interest, p. 120. I have been unable to find corroborating evidence for this claim.

110 ‘Profile: Mark Thatcher’, BBC News, 26 August 2004, http://news.bbc.co.uk/1/hi/uk_politics/3597196.stm.

111 Kevin Maguire and Michael White, ‘Scratcher, the millionaire fixer’, Guardian, 26 August 2004, http://www.guardian.co.uk/politics/2004/aug/26/uk.southafrica.

112 Ibid.

113 David Pallister, ‘Thatcher was integral to coup plot, Mann tells court’, Guardian, 18 June 2008, http://www.guardian.co.uk/world/2008/jun/18/equatorialguinea.southafrica.

114 Ibid. In the same interview Mann also claimed that the South African President, Thabo Mbeki, had supported the planned coup, as had the South African and Spanish governments. He further claimed that the Pentagon, CIA and major US oil companies had given implicit support to the coup in the oil-rich state run by the Obiang family. The main backer for the coup, according to Mann, was Ely Calil, a Lebanese businessman and property developer living in London, who he says offered him $15m to organize the coup.

115 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 209; and Leigh and Evans, ‘Wafic Said’. It is unclear whether Thatcher purchased the flat through the company or whether the company made the purchase and gave it to Thatcher, who certainly occupied it for two years before selling up.

116 Hollingsworth and Halloran, Thatcher’s Fortunes, p. 213.

117 Webb, Armour-Plated Ostrich, p. 99.

118 Deirdre Hipwell, ‘Investors cash in on Libya’s post-sanction era’, PropertyWeek.com, 5 April 2007, http://www.propertyweek.com/story.asp?storycode=3084341.

119 Holly Watt and Robert Winnett, ‘Company with links to Tony Blair adviser in Libya tourism deal’, Daily Telegraph, 7 November 2009, http://www.telegraph.co.uk/news/newstopics/politics/6515524/Company-with-links-to-Tony-Blair-adviser-in-Libya-tourism-deal.html.

120 Wafic Said website, ‘Said Foundation’, http://www.waficsaid.com/Said_foundation.htm.

121 FAME company searches.

122 Said Business School website, ‘Our Benefactors’, http://www.sbs.ox.ac.uk/about/Pages/benefactors.aspx.

123 Wafic Said website, ‘Said Business School’, http://www.waficsaid.com/said_business_school.htm.

124 Rachel Sylvester, ‘The fixer who keeps a foot in both camps’, Daily Telegraph, 17 March 2001, http://www.telegraph.co.uk/news/uknews/1326784/The-fixer-who-keeps-a-foot-in-both-camps.html.

125 Charlie Bain, ‘Oxford dons vote against business school project’, Independent, 6 November 1996, http://www.independent.co.uk/news/oxford-dons-vote-against-business-school-project-1350919.html?cmp=ilc-n.

126 ‘Climber cleared of trespass offence’, Oxford Mail, 20 February 2002, http://archive.oxfordmail.net/2002/2/20/44121.html.

127 Centre for Lebanese Studies website, ‘People’, http://www.lebanesestudies.com/7/About%20the%20Centre%20%3E%20Who%20we%20are.html.

128 Wafic Said website, ‘Profile’, http://www.waficsaid.com/profile.htm.

129 UNESCO website, http://www.unesco.org/confgen/participants/lists/saint_vincent_et_grenadines.html; Wafic Said website, ‘Profile’, http://www.waficsaid.com/profile.htm.

130 Alderson, ‘“Do I deserve to be labelled a Syrian terrorist?”’ (see n. 83 above).

131 Robert Winnett and Jonathan Calvert, ‘Cameron took £100,000 from Saudi arms dealer’, Sunday Times, 26 March 2006.

132 Rasha Said, his daughter and at the time a nineteen-year-old student, and his wife, Rosemary, reportedly donated to the Conservative Party four times in 2005. According to her father, Rasha’s assets at the time amounted to £200. Robert Winnett, ‘Tories face investigation into donations from Syrian millionaire’s family’, Daily Telegraph, 31 March 2009, http://www.telegraph.co.uk/news/newstopics/politics/conservative/5084166/Tories-face-investigation-into-donations-from-Syrian-millionaires-family.html; David Hencke and agencies, ‘Labour MP asks Electoral Commission to investigate Tory donor’, Guardian, 18 November 2009, http://www.guardian.co.uk/politics/2008/nov/18/conservatives-bae; the Conservative Party was forced to admit that ‘In 2005 a number of donations from Rosemary were incorrectly registered with the Electoral Commission as coming from her daughter Rasha. This was an administrative error for which we take full responsibility. It occurred because of a misreading of the electoral roll during compliance checks.’ Despite these claims of a clerical error, a Labour MP has asked that a £47,000 donation from Rasha Said be investigated by the Electoral Commission.

133 Chris Blackhurst, ‘Whitehall alarm over Mandelson’s meetings in Syria’, Independent, 16 February 2001, http://www.independent.co.uk/news/uk/politics/whitehall-alarm-over-mandelsons-meetings-in-syria-692007.html?cmp=ilc-n.

134 Ibid.

135 David Leigh, Rob Evans and Ewen MacAskill, ‘Lebanese billionaire is drawn into BAE arms deal inquiry as “second middleman for Saudis”’, Guardian, 2 December 2006, http://www.guardian.co.uk/world/2006/dec/02/bae.armstrade.

136 Mohammad Safadi website, translated into English using google translate, biography page at http://translate.google.co.uk/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fwww.mohammad-safadi.com%2Fwhy.php&sl=auto&tl=en.

137 David Leigh and Rob Evans, ‘Mohammed Safadi’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/07/bae6.

138 ‘Lebanon’s unity government’, Al Jazeera, 9 November 2009, http://english.aljazeera.net/news/middleeast/2009/11/2009119194612926893.html; ‘Safadi urges boycott of Israeli goods in Arab markets’, Daily Star (Lebanon), 28 April 2010, http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=3&article_id=114295#axzz0u7qnaQfs.

139 Leigh, Evans and MacAskill, ‘Lebanese billionaire is drawn into BAE arms deal inquiry’ (see n. 135 above).

140 Leigh and Evans, ‘Mohammed Safadi’ (see n. 137 above).

141 TAG Aviation website, http://www.tagaviation.com/TagFarnboroughAirport/tabid/84/Default.aspx; Fame entry for ‘TAG AVIATION HOLDING SA’.

142 Leigh and Rob Evans, ‘Mohammed Safadi’ (see n. 137 above).

143 Ibid.

144 Fame entry for ‘BRITISH MEDITERRANEAN AIRWAYS LTD’.

145 Leigh and Evans, ‘Wafic Said’ (see n. 87 above).

146 Quoted in William Simpson, The Prince: The Secret Story of the World’s Most Intriguing Royal Prince, Bandar Bin Sultan (New York: HarperCollins, 2006), p. 149.

147 Declassified State Department Cable, 7 May 2004, published at http://www.pbs.org/frontlineworld/stories/bribe/images/pdf/helicopter.pdf.

148 Ibid.

149 Ibid.

150 ‘Black Money’ (see n. 13 above).

151 Ibid.

6. Diamonds and Arms

    1 Bavarian State Office of Criminal Investigation, Report on the Greek Citizen Angelos Scordas/Merex, Case Ref: 142/96, Volume M-4581-96, Düsseldorf, 11 January 2005.

    2 S. Ellis, The Mask of Anarchy (New York: New York University Press, 2006), p. 67.

    3 ‘Charles Taylor: Africa’s monster’, Independent, 1 April 2006.

    4 Ellis, Mask of Anarchy, p. 67.

    5 Ibid.

    6 ‘Charles Taylor: Africa’s monster’, Independent, 1 April 2006.

    7 Ellis, Mask of Anarchy, p. 67.

    8 ‘Charles Taylor claims US helped spring him from Plymouth Jail’, Boston Globe, 16 July 2009.

    9 Ibid.

  10 ‘Ex-leader of Liberia cites CIA in jailbreak’, The New York Times, 17 July 2009.

  11 Ibid.; and ‘How Taylor escaped US prison’, Inquirer (Liberia), July 2009.

  12 ‘Ex-leader of Liberia cites CIA in jailbreak’, The New York Times, 17 July 2009.

  13 Ellis, Mask of Anarchy, pp. 67–9.

  14 ‘Charles Taylor and the assassination of Sankara’, Pambazuka News, 19 June 2008, Issue 382.

  15 ‘Ghaddaffi, Compaore named external actors in Liberian conflict’, Daily Observer (Liberia), 14 December 2009; D. Farah, Blood From Stones: The Secret Financial Network of Terror (New York: Broadway Books, 2004), p. 10.

  16 Farah, Blood From Stones, p. 24.

  17 Ibid.

  18 Ibid.

  19 Ellis, Mask of Anarchy, p. 78.

  20 ‘Troubled past of Africa’s first republic’, BBC News, 12 August 1999.

  21 ‘A bad man in Africa’, Daily Telegraph, 29 June 2003.

  22 ‘Liberia: the politics of brute force’, Perspective, 17 July 2000.

  23 ‘Liberia: TRC’s most notorious’, New Democrat, 6 July 2009.

  24 Republic of Liberia Truth and Reconciliation Commission: Final Report, Volume II, 2009, pp. 127–8, available for download from www.trcofliberia.org.

  25 Ibid., p. 128.

  26 Ellis, Mask of Anarchy, pp. 90–91.

  27 A. Adebajo, Liberia’s Civil War: Nigeria, Ecomog and Regional Security in West Africa (Boulder, Colo.: L. Rienner Publications, 2002), p. 90.

  28 G. Campbell, Blood Diamonds (Cambridge, Mass.: Basics Books, 2004), p. 72.

  29 For a chilling account of the life of a diamond and weapons mule, see Blood Diamonds.

  30 Ibid., p. 23.

  31 Ibid., p. 42.

  32 United Nations Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1343 (2001), Paragraph 19, Concerning Liberia, S/2001/1015, 17 October 2001, para. 153, p. 35.

  33 According to information posted via the Australian Government Information Service, www.info.dfat.gov.au. Accessed 25 May 2005.

  34 Company Register: Orbal Marketing Services, Australian Securities and Investment Commission. Accessed 16 June 2010.

  35 United Nations Security Council, ‘Firm offers Liberian diamonds despite ban’, Rapaport, 14 January 2003; and Report of the Panel of Experts Appointed Pursuant to Paragraph 4 of Security Council Resolution 1458 (2003), Concerning Liberia, S/2003/498, 24 April 2003, p. 36.

  36 Interrogation of Roger D’Onofrio, Regione Carabinieri Campania: Stazione di Vico Equense, 6 December 1995.

  37 ‘Taylor, Ghadafi, ex-CIA agent organized arms, diamonds smuggling company’, Truth and Reconciliation Commission of Liberia, press release, 18 February 2009, available for download from www.trcofliberia.org.; and ‘Appendix A: Chronology of Nuclear Smuggling Incidents’ in The Continuing Threat from Weapons of Mass Destruction, timeline/briefing document presented during 1996 Congressional Hearings on Intelligence and Security, Central Intelligence Agency (CIA), undated, available for download from www.cia.gov.

  38 Interrogation of Roger D’Onofrio, Regione Carabinieri Campania: Stazione di Vico Equense, 6 December 1995.

  39 P. Jenkins, ‘Whose Terrorists? Libya and State Criminality’, Contemporary Crises 1988, Vol. 12, p. 14.

  40 ‘In Italy: a subtle mixture of intimidation and seduction’, Le Monde, 22–23 April 1984, p. 4.

  41 Ibid.; and ‘The Burden of Billy’, Time, 4 August 1980.

  42 ‘In Italy: A Subtle Mixture of Intimidation and Seduction’, Le Monde, 22–23 April 1984, p. 4.

  43 ‘The Burden of Billy’, Time, 4 August 1980.

  44 Ibid.; and V. Pisano, ‘Libya’s Foothold in Italy’, The Washington Quarterly, Vol. 5 (1982), No. 2, pp. 179–80.

  45 ‘Billy Carter dies of cancer at 51; troubled brother of a president’, The New York Times, 26 September 1980.

  46 Interrogation of Roger D’Onofrio, Regione Carabinieri Campania: Stazione di Vico Equense, 6 December 1995.

  47 Ibid.

  48 Ibid.

  49 Ibid.

  50 Ibid. See also Republic of Liberia Truth and Reconciliation Commission: Volume III (Appendices), Economic Crimes and the Conflict: Exploitation and Abuse, 2009, paras. 113–15.

  51 Republic of Liberia Truth and Reconciliation Commission: Volume III (see n. 50 above).

  52 Bavarian State Office of Criminal Investigation, Report on the Greek Citizen Angelos Scordas/Merex, Case Ref: 142/96, Volume M-4581-96, Düsseldorf, 11 January 2005.

  53 ‘Agreement No. 002A between Swift International Business Services Canada Inc. (Montreal), Battisto Elmo (Milan) and IBC International Business Consult (Monrovia)’, undated; ‘Agreement No. 002A between Swift International Business Services Canada Inc. (Montreal), Battisto Elmo (Milan) and IBC International Business Consult (Monrovia)’, 25 February 1994 (signed Dennis Moorby, Battisto Elmo and Dr Rudolf Meroni); ‘Agreement No. 001A between Swift International Business Services Canada Inc. (Montreal), Battisto Elmo (Milan) and IBC International Business Consult (Monrovia)’, 2 March 1994, Signed Dennis Moorby, Battisto Elmo, Dr Rudolf Meroni and Carlo Galeazzi. Documents gathered and collated by Italian police under auspices of the ‘Cheque to Cheque’ investigation.

  54 ‘Informative di Reato Relativa all’operazione “Cheque to Cheque”’, Regione Carabinieri Campania: Stazione di Vico Equense, 30 June 1998, p. 308.

  55 Memo conferring power of attorney to Francesco Elmo, Swift International Business Services Canada Inc., Signed Dennis Moorby, Zurich, 8 April 1994. Documents gathered and collated by Italian police under auspices of the ‘Cheque to Cheque’ investigation.

  56 Interrogation of Roger D’Onofrio, Regione Carabinieri Campania: Stazione di Vico Equense, 6 December 1995. See also Republic of Liberia Truth and Reconciliation Commission: Volume III (see n. 50 above), para. 113.

  57 M. Hibbs, ‘Plutonium, Politics and Panic’, Bulletin of Atomic Scientists, November/December 2004, p. 25.

  58 ‘A master plan drawn in blood’, The New York Times, 2 April 2006.

  59 Ellis, Mask of Anarchy, p. 109.

  60 Jimmy Johnson, ‘Israelis and Hezbollah haven’t always been enemies’, 11 September 2006, http://www.williambowles.info/syria_lebanon/israel_hezbollah.html.

  61 Statement of Fernando Robleda, 6 June 2000, Central Examining Court: Madrid and Interrogation of Vadim Semov, 25 April 2002, Central Examining Court: Madrid and Interrogation of Leonid Minin, 8 July 2001, Monza Public Prosecutor’s Office.

  62 ‘Minin Leonid Efimovic’, Anneso ‘1’, Commando Generale dell’Arma dei Carabinieri, Ufficio Criminalita Organizzata, Roma, 17 March 1996 (Cheque to Cheque documents).

  63 ‘Mafia Ucraina/Ukrainian Organized Crime’, Servizio Centrale Operativo Della Polizia di Stato, Report of Symposium held in Rome, 7–8 October 1998.

  64 Ibid.

  65 Ibid.

  66 Ibid.

  67 Ibid. Note that this is also variously spelt as Naftna Mafija.

  68 Ibid.

  69 Ibid.

  70 Ibid.

  71 Interrogation of Leonid Minin, Busto Arsizio Prison, 7 July 2001.

  72 Statement of Fernando Robleda, 6 June 2000 (see n. 61 above).

  73 ‘Articles of Incorporation of Exotic Tropical Timber Enterprises’, Monrovia, Liberia, 25 February 1997.

  74 ‘Plantation Harvesting Rights and Investment Incentive Contract between the Government of the Republic of Liberia and Exotic Tropical Timber Enterprises’, signed Mary Mamie Howe, Monrovia, Liberia, 15 May 1997.

  75 Letter from Fernando Robleda to the Resident Representative, European Commission (Aid Coordination Office in Liberia), 15 January 1998, and attached ‘Aide Memoire’.

  76 Ibid.

  77 Statement of Fernando Robleda, 6 June 2000 (see n. 61 above).

  78 Interrogation of Leonid Minin, 8 July 2001, Monza Public Prosecutor’s Office.

  79 Minutes of the Meeting of the Board of Directors of Exotic Tropical Timber Enterprises, 10 December 1998, Hotel Africa.

  80 ‘Forest Products Utilization Contract between the Government of the Republic of Liberia and Exotic Tropical Timber Enterprises’, 14 December 1998.

  81 United Nations Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1306 (2000), Paragraph 19, in Relation to Sierra Leone, S/2000/1195, December 2001, para. 211, p. 35; Interrogation of Leonid Minin, 10 September 2001, Monza Public Prosecutor’s Office. Minin denied any role in the deal despite the extensive records linking him to it.

  82 Gberie, Dirty War in West Africa, p. 129; and reports compiled by Human Rights Watch.

  83 Gberie, Dirty War in West Africa, p. 127.

  84 ‘Anatomy of two arms dealers’, Asia Times, 19 June 2004.

  85 Amnesty International and TransArms, Dead on Time – Arms Transportation, Brokering and the Threat to Human Rights, ACT 30/007/2006, 9 May 2006.

  86 UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1306 (see n. 81 above), pp. 35–6. See also UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1343 (see n. 32 above), para. 212, p. 47.

  87 ‘War crimes trial resumes for former leader of Liberia’, The New York Times, 8 January 2008.

  88 ‘The Tammivuori family has long advanced Finnish exports’, Helsingin Sanomat, 2 July 2002.

  89 Interrogation of Leonid Minin, 8 July 2001, Monza Public Prosecutor’s Office.

  90 Fax from Erkki Tammivuori to Leonid Minin, 20 March 1999, Minin Archives/Docs.

  91 Interrogation of Leonid Minin, 8 July 2001, Monza Public Prosecutor’s Office.

  92 Fax from Erkki Tammivuori to Leonid Minin (Limad AG – Zug), Ref: Consulting Agreement Structure’, 24 June 1999.

  93 Fax from Erkki Tammivuori addressed to ‘Dear Leo’, undated, headed: ‘Summary Report on the Meetings with a Checklist for Items Expected from the Liberian Side’.

  94 ‘Minin Esame Documenti Sequestri’, Italian translation and summary of documents seized from Leonid Minin by Italian police in August 2000, 23 May 2001.

  95 Fax from Erkki Tammivuori to Leonid Minin, Ref.: ‘Konkurs’ Missiles Procurement, 23 March 1999, Minin Archives/Docs.

  96 Ibid.

  97 Fax from Erkki Tammivuori (Met A.S.) to Leonid Minin, 27 July 1999, Minin Archives/Papers.

  98 ‘Finnish businessman implicated in weapons smuggling from Europe to Liberia’, Helsingin Sanomat, 2 July 2002.

  99 UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1343 (see n. 32 above), para. 218.

100 Amnesty International, Dead on Time.

101 Ken Silverstein, ‘Comrades in Arms’, Washington Monthly, January/February 2002.

102 ‘Sierra Leone: Gunrunners’, transcript of PBS arms-dealing special, May 2002, www.stimson.org. Accessed 9 August 2010.

103 ‘From factory to firing line: the story of one bullet’, Sunday Herald Online, 9 October 2005.

104 Silverstein, ‘Comrades in Arms’.

105 Interrogation of Leonid Minin, 8 July 2001, Monza Public Prosecutor’s Office.

106 Ibid.

107 Fax from Fernando Robleda to Vadim Semov, 19 March 1999, Minin Italian Case Legal Docs.

108 Greenpeace, Logs of War: The Relationship between the Timber Sector, Arms Trafficking and the Destruction of the Forests in Liberia, March 2001, pp. 17–18.

109 ‘Buyer beware: the stamps that fooled a nation’, Independent, 13 May 2006.

110 Interview with source.

111 ‘The deadly convenience of Viktor Bout’, ISN ETH Zurich, 24 June 2008.

112 ‘Times Topics: Viktor Bout’, The New York Times, 11 August 2009.

113 ‘The deadly convenience of Viktor Bout’, ISN ETH Zurich, 24 June 2008. This claim was described as rubbish by Bout’s wife, Alla, who attacked ‘hysterical’ articles making the link: ‘this is complete nonsense – my father was just an ordinary school teacher, not a KGB general!’

114 ‘Background: the life of Viktor Bout’, Guardian, 6 March 2009.

115 Doug Farah and Stephen Braun, Merchant of Death (London: John Wiley & Sons, 2007), pp. 32–3.

116 Ibid., pp. 132–6.

117 Coalition for International Justice, Following Taylor’s Money: A Path of War and Destruction, Washington DC, May 2005, pp. 16–22.

118 Ibid., pp. 45–9.

119 Doug Farah, and Stephen Braun, ‘The Merchant of Death’, Foreign Policy, 10 October, 2006. It should be noted that the British intelligence agency, MI5, estimated the trade to be worth slightly over half of this amount at $30m. See ‘A merchant of death or decent businessman?’, Moscow Komsomolskaya Pravda, 27 February 2002.

120 Farah and Braun, ‘Merchant of Death’, Foreign Policy, 10 October 2006.

121 Farah and Braun, Merchant of Death, pp. 49–51.

122 Ibid.

123 Ibid., pp. 81–2.

124 ‘Victor Bout: Africa’s merchant of death’, Guardian, 23 December 2000. See also United Nations Security Council, Final Report of the Monitoring Mechanism on Angola Sanctions, S/2000/1225, 21 December 2000.

125 Farah and Braun, Merchant of Death, p. 41. The Liberian aircraft registry was located in London for many years and none of the flight plans or their documents were ever properly evaluated.

126 UN Security Council, Report of the Panel of Experts Appointed Pursuant to Security Council Resolution 1306 (see n. 81), para. 224.

127 Centre for Public Integrity, South Africa: The Merchant of Death, 20 November 2000, available for download from www.allafrica.com. Ruprah has denied any link with Executive Outcomes.

128 ‘Private Military Companies: Soldiers Inc.’, Jane’s Defence Weekly, 22 May 2002.

129 UN Security Council, Report of the Panel of Experts Appointed Pursuant to Security Council Resolution 1306 (see n. 81 above), para. 225.

130 UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1343 (see n. 32 above), paras. 59–61.

131 Ibid.

132 UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1306 (see n. 81 above), para. 232.

133 Ibid., para. 234.

134 Ibid., para 233.

135 ‘The international dealers in death’, Guardian, 9 July 2001.

136 Farah and Braun, ‘Merchant of Death’, Foreign Policy.

137 Coalition for International Justice, Following Taylor’s Money, p. 26.

138 Republic of Liberia Truth and Reconciliation Commission: Volume III (see n. 50 above), para. 94.

139 Farah, Blood From Stones, p. 5.

140 Ibid., pp. 6 and 113–16.

141 Global Witness, For a Few Dollars More: How al Qaeda moved into the Diamond Trade, April 2003, p. 41.

142 Farah, Blood From Stones, p. 56.

143 Ibid., pp. 53–9.

144 Wanted poster for Abdullah Ahmed Abdullah, Rewards for Justice Program, US Department of State.

145 Global Witness, For a Few Dollars More, p. 41.

146 Ibid.

147 Ibid.

148 ‘Al Qaeda’s growing sanctuary’, Washington Post, 14 July 2004.

149 Global Witness, For a Few Dollars More, p. 47.

150 Ibid.

151 H. Anders, and A. Vines, ‘Sanction and Enforcement’, in Developing a Mechanism to Prevent Illicit Brokering in Small Arms and Light Weapons – Scope and Implications (Geneva: United Nations Institute for Disarmament Research (UNIDIR), 2007), p. 131.

152 Global Witness, For a Few Dollars More, pp. 53–9; Yelenik is sometimes spelled Yelnik.

153 Ibid.

154 Ibid.

155 Farah, Blood From Stones.

156 There is some dispute as to whether Kouwenhoven, whose first name is sometimes also spelled Guus, was born in Rotterdam or Den Bosch. Different accounts and court records do not agree.

157 ‘Crimes against humanity: anatomy of an arms dealer’, Independent, 19 May 2006.

158 Ibid.

159 ‘Profile: Guus Kouwenhoven’, BBC News Online, 10 March 2008.

160 ‘Crimes against humanity’, Independent, 19 May 2006.

161 Ibid.

162 Ibid.

163 UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1343 (see n. 32 above), para. 333.

164 Ibid., para. 334.

165 Africa South of the Sahara 2004 (London: Europa Publications, 2004), pp. 614–15.

166 Global Witness, The Usual Suspects: Liberia’s Weapons and Mercenaries in Côte d’Ivoire and Sierra Leone, March 2003, p. 24.

167 UN Security Council, Report of the Panel of Experts Pursuant to Security Council Resolution 1343 (see n. 32 above), paras. 334–5.

168 Judgment in the Matter of Public Prosecutors Office (Holland) vs Gus Kouwenhoven, District Court of The Hague (Criminal Law Section), LJN: AY5160/ 09/750001-05, 7 June 2006.

169 Ibid.

170 Ibid.

171 Ibid.

172 Ibid.

173 Ibid.

174 United Nations Security Council, Security Council Committee on Liberia Updates Assets Freeze List, SC/8570, 30 November 2005.

175 ‘Back to the Brink: War Crimes by Liberian Government and Rebels, Section III: Lurd Forces’, Human Rights Watch, Vol. 14, No. 4(a), May 2002; and Stephen Ellis, email communication, 19 June 2011.

176 International Crisis Group, Côte d’Ivoire: The War is Not Yet Over, Africa Report No. 72, 28 November 2003; and Stephen Ellis, email communication, 19 June 2011.

177 Africa South of the Sahara 2004, pp. 607–9.

178 The Liberian Truth and Reconciliation Commission published its Final Report in December 2009. It can be downloaded from www.trcofliberia.org. The Final Report also clarifies the origins of the Liberian Truth and Reconciliation Commission and the legal framework in which it operated.

179 ‘Nigeria will end asylum for warlord’, The New York Times, 25 March 2006.

180 ‘Taylor’s new Nigerian home’, BBC News, 11 August 2003; and ‘Taylor’s Nigerian gilded cage’, BBC News, 28 March 2006.

181 Coalition for International Justice, Following Taylor’s Money, pp. 16–22.

182 Ibid.

183 Ibid., pp. 6–7.

184 ‘Nigerian to hand over Liberian ex-leader’, Los Angeles Times, 26 March 2006.

185 ‘Ex-Liberian warlord behind bars’, CBS News, 29 March 2006; and ‘Charles Taylor caught in Nigeria’, BBC News, 29 March 2006.

186 ‘Charles Taylor “duped” by Nigeria’, BBC News, 10 November 2009.

187 Exact figures for the number of dead in the Liberian conflict are hard to come by. This figure is drawn from Ellis, Mask of Anarchy, ‘Annex A: Casualties of the Liberian War, 1989–1997’, pp. 315–16.

7. Buckling to Bandar

    1 ‘Romania’, Guardian, ‘The BAE Files’.

    2 In addition to the sources cited, this chapter is drawn from conversations with a variety of people with knowledge of the investigation.

    3 Christopher Hope, ‘Twenty years of smokescreen over Saudi deal’, Daily Telegraph, 21 June 2006, http://www.telegraph.co.uk/finance/2941537/Twenty-years-of-smokescreen-over-Saudi-deal.html.

    4 Ibid.

    5 FOIA Centre, ‘Government falsely claimed that NAO report cleared “Al Yamamah” of bribery allegations’, 21 June 2006, http://www.foiacentre.com/news-al-yamamah-060621.html.

    6 Christopher Hope and James Kirkup, ‘Extravagance uncovered during Saudi arms probe’, Daily Telegraph, 10 April 2008, http://www.telegraph.co.uk/news/uknews/1584599/Extravagance-uncovered-during-Saudi-arms-probe.html.

    7 James, In the Public Interest (London: Little, Brown and Company, 1995), p. 56. Bourne eventually resigned from his position, not because his credibility was fatally undermined on Al Yamamah but as a consequence of an expenses claim of £365,000 over three years on travel alone and £27,000 on food. It was also discovered that he was not averse to accepting hospitality from those he was auditing, including as a guest of BAe at the British Grand Prix (Robert Winnett, ‘How unsackable Sir John Bourn sealed his fate’, Daily Telegraph, 26 October 2007, http://www.telegraph.co.uk/news/uknews/1567357/How-unsackable-Sir-John-Bourn-sealed-his-fate.html).

    8 David Leigh and Rob Evans, ‘Nobbling the police’, Guardian, ‘The BAE Files’, http://www.guardian.co.uk/baefiles/page/0,,2098531,00.html.

    9 Robert Wardle, witness statement of 17 December 2007 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/WardleWitState.pdf, 14 April 2010.

  10 Document 3 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, letter of 7 November 2005 from Michael Lester to Lord Goldsmith QC, attaching a memorandum, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf.

  11 Ibid.

  12 Ibid.

  13 Ibid.

  14 Ibid.

  15 Ibid.

  16 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, Adopted by the Negotiating Conference on 21 November 1997, http://www.oecd.org/dataoecd/4/18/38028044.pdf.

  17 Document 3 in High Court case between CAAT, Corner House and the Director of the SFO (see n. 10 above).

  18 Document 2 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, letter of 10 November 2005 from Jonathan Jones to Michael Lester, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  19 Document 4 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, letter of 11 November 2005 from Michael Lester to Jonathan Jones, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  20 Document 6 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, letter of 15 November 2005 from Matthew Cowie to Jonathan Hitchin, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  21 Robert Wardle, witness statement of 17 December 2009 in High Court case between CAAT, Corner House and the Director of the SFO (see n. 9 above).

  22 Document 1 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW2, letter from Jonathan Jones to Gus O’Donnell and others, 6 December 2005, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/RedactedDocsRW2.pdf.

  23 Robert Wardle, witness statement of 17 December 2009 in High Court case between CAAT, Corner House and the Director of the SFO (see n. 9 above).

  24 Document 2 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW2, letter from Gus O’Donnell to Jonathan Jones, 16 December 2005, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/RedactedDocsRW2.pdf.

  25 Ibid.

  26 Ibid.

  27 Document 7 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, file note written by Robert Wardle dated 22 December 2005 recording conversation on 7 December 2005 with Michael Lester, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  28 Document 8 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, email from Jonathan Hitchin to Matthew Cowie of 8 December 2005, attaching a memorandum for the Director of the Serious Fraud Office, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  29 Ibid.

  30 Ibid.

  31 Document 9 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, Director Brief written by Matthew Cowie, 19 December 2005, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  32 Drawn from Document 10 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, note of meeting on 11 January 2006, attended by the Law Officers and the Director of the SFO, and others, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  33 Robert Wardle, witness statement of 17 December 2009 in High Court case between CAAT, Corner House and the Director of the SFO (see n. 9 above).

  34 Leigh and Evans, ‘Nobbling the police’ (see n. 8 above).

  35 Freedom of Information response from the Attorney General, 4 April 2007, to the Guardian, p. 5, published at http://web.archive.org/web/20080407230917/http://www.attorneygeneral.gov.uk/attachments/Sample+SFO+&+bae+reply.pdf. (Link on the Guardian files, http://www.guardian.co.uk/baefiles/page/0,,2098531,00.html, is no longer active; link above is using the WebArchive website retrieving the document posted active in 2008.)

  36 Document 1 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW2, letter from Gus O’Donnell to Jonathan Jones, 29 September 2006, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/RedactedDocsRW2.pdf.

  37 Document 11 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, letter from Helen Garlick, Assistant Director of the SFO, to Jonathan Jones, Legal Secretary to the Law Officers, 27 October 2006, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  38 Ibid.

  39 Ibid.

  40 Freedom of Information response from the Attorney General, 4 April 2007, to the Guardian, p. 6 (see n. 35 above), referencing the Attorney General’s answer to a parliamentary question from Lord Avebury on 22 January 2007.

  41 Ibid.

  42 Ibid.

  43 Leigh and Evans, ‘Nobbling the police’ (see n. 8 above).

  44 David Leppard, ‘Blair hit by Saudi “bribery” threat’, Sunday Times, 19 November 2006, http://www.timesonline.co.uk/tol/news/uk/article641360.ece.

  45 Benedict Brogan, ‘50,000 British jobs at risk if vital defence deal is lost’, Daily Mail, 24 November 2006, http://www.dailymail.co.uk/news/article-418481/50-000-British-jobs-risk-vital-defence-deal-lost.html.

  46 David Leigh and Rob Evans, ‘Brutal politics lesson for corruption investigators’, Guardian, 16 December 2006, http://www.guardian.co.uk/uk/2006/dec/16/armstrade.saudiarabia2.

  47 Ibid.

  48 Christopher Hope, ‘Halt inquiry or we cancel Eurofighters’, Daily Telegraph, 1 December 2006, http://www.telegraph.co.uk/news/uknews/1535683/Halt-inquiry-or-we-cancel-Eurofighters.html.

  49 Isabel Oakeshott, ‘MPs demand Blair save Saudi weapons deal’, Sunday Times, 3 December 2006, http://www.timesonline.co.uk/tol/news/uk/article658378.ece.

  50 Christopher Hope, ‘Pressure grows to resolve fraud inquiry into Saudi arms deals’, Daily Telegraph, 4 December 2006, http://www.telegraph.co.uk/finance/2951813/Pressure-grows-to-resolve-fraud-inquiry-into-Saudi-arms-deals.html.

  51 James, In the Public Interest, p. 104.

  52 Ibid., p. 115; and ‘Pergau dam affair: “sweeteners” row sparked trade ban’, Independent, 8 September 1994.

  53 ‘Black Money’, Frontline, PBS, http://www.pbs.org/wgbh/pages/frontline/blackmoney/view/, transcript available at http://www.pbs.org/wgbh/pages/frontline/blackmoney/etc/script.html.

  54 Ibid.

  55 Leigh and Evans, ‘Brutal politics lesson for corruption investigators’ (see n. 46 above).

  56 Document 2 in High Court case between CAAT, Corner House and the Director of the SFO (see n. 24 above).

  57 Leigh and Evans, ‘Brutal politics lesson for corruption investigators’, (see n. 46 above).

  58 Ibid.

  59 Ewen MacAskill and Rob Evans, ‘Britain “agreed in secret” to expel Saudis during £40bn arms talks’, Guardian, 28 September 2005, http://www.guardian.co.uk/uk/2005/sep/28/saudiarabia.armstrade.

  60 Richard Norton-Taylor, ‘Britain and the Saudis finally sign £4.43bn Eurofighter deal’, Guardian, 18 September 2007, http://www.guardian.co.uk/uk/2007/sep/18/saudiarabia.armstrade.

  61 CAAT, Control BAE website, http://www.caat.org.uk/campaigns/controlBAE/.

  62 Ian Davis and Emma Mayhew, What Happens When a White Elephant Meets a Paper Tiger?: The Prospective Sale of Eurofighter Typhoon Aircraft to Saudi Arabia and the EU Code of Conduct on Arms Exports, BASIC Papers, Occasional Papers on International Security Policy, No. 49, December 2005, http://kms1.isn.ethz.ch/serviceengine/Files/ISN/17188/ipublicationdocument_singledocument/ceba82f1-3083-4138-a0ee-83f6ba56e3d7/en/BASIC+PAPERS.pdf.

  63 ‘The impact of the large cost overruns and delays’, in Select Committee on Public Accounts Forty-Third Report, Chapter One, 2004, http://www.publications.parliament.uk/pa/cm200304/cmselect/cmpubacc/383/38305.htm#note12.

  64 Hansard, 9 March 1989, Column 1055, http://www.publications.parliament.uk/pa/cm198889/cmhansrd/1989-03-09/Debate-2.html.

  65 Davis and Mayhew, What Happens When a White Elephant Meets a Paper Tiger? (see n. 62 above).

  66 Hansard, 9 July 1997, Column 855, http://www.publications.parliament.uk/pa/cm199798/cmhansrd/vo970709/debtext/70709-02.htm#70709-02_spnew0.

  67 Sylvia Pfeifer, ‘Oman in talks to buy Eurofighter Typhoons’, Financial Times, 3 April 2010, http://www.ft.com/cms/s/0/9616ce7a-3eb8-11df-a706-00144feabdc0.html; and UPI, 5 April 2010; and ‘Sources: Oman to buy 24 Eurofighters’, http://www.upi.com/Business_News/Security-Industry/2010/04/05/Sources-Oman-to-buy-24-Eurofighters/UPI-28171270484630/.

  68 Davis and Mayhew, What Happens When a White Elephant Meets a Paper Tiger? (see n. 62 above), quoting US Department of State, World Military Expenditures and Arms Transfers, table III, 1999–2000.

  69 ‘BAE steps up Saudi effort’, Flight International, 21 June 2005, http://www.flightglobal.com/articles/2005/06/21/199774/bae-steps-up-saudi-effort.html.

  70 Davis and Mayhew, What Happens When a White Elephant Meets a Paper Tiger? (see n. 62 above).

  71 Leigh and Evans, ‘Brutal politics lesson for corruption investigators’ (see n. 46 above).

  72 Witness statement of Dr John Jenkins (FCO) in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, published at http://image.guardian.co.uk/sys-files/Politics/documents/2008/07/09/JenkinsStatement.pdf.

  73 Sunday Times, 10 June 2007.

  74 David Leigh and Rob Evans, ‘BAE: secret papers reveal threats from Saudi prince’, Guardian, 15 February 2008, http://www.guardian.co.uk/world/2008/feb/15/bae.armstrade.

  75 Michael Settle, ‘French connection to axed inquiry. Fears Paris could snatch a new deal lay behind the U-turn, finds Michael Settle’, Herald Scotland, 16 December 2006, http://www.heraldscotland.com/sport/spl/aberdeen/french-connection-to-axed-inquiry-fears-paris-could-snatch-a-new-deal-lay-behind-the-u-turn-finds-michael-settle-1.1971.

  76 Corner House, ‘Documents reveal that Blair urged end to BAE–Saudi corruption investigation’, 21 December 2007, http://www.thecornerhouse.org.uk/item.shtml?x=559591. The minute can be viewed at www.theshadowworld.com.

  77 Document 7 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW2, first attachment to the Prime Minister’s minute: letter and note from Sir Richard Mottram, Permanent Secretary Intelligence, Security and Resilience, 23 November 2006, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/RedactedDocsRW2.pdf.

  78 Document 8 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW2, second attachment to the Prime Minister’s minute: letter from Sir Peter Ricketts to Oliver Robbins Esq., Principal Private Secretary, 10 Downing Street, 24 November 2006, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/RedactedDocsRW2.pdf.

  79 Leigh and Evans, ‘Nobbling the police’ (see n. 8 above).

  80 Corner House, ‘Documents reveal that Blair urged end to BAE–Saudi corruption investigation’ (see n. 76 above).

  81 Document 9 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW2, letter from Sir Oliver Robbins to Jonathan Jones, 12 December 2006 published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/RedactedDocsRW2.pdf.

  82 Document 12 in High Court case between CAAT, Corner House and the Director of the SFO with BAE Systems PLC as an interested party. CO/1567/07, Exhibit RW4, note, dated 14 December 2006, of meeting on 13 December 2006, attended by the Law Officers and the Director, and others, published at http://www.thecornerhouse.org.uk/sites/thecornerhouse.org.uk/files/SecondRedactDocsRW4.pdf, 23 November 2009.

  83 Ibid.

  84 Freedom of Information response from the Attorney General, 4 April 2007, to the Guardian, p. 7 (see n. 35 above), referencing the Solicitor General’s answer to a written Parliamentary Question from Susan Kramer MP on 19 January 2007.

  85 Gleaned from sources interviewed regularly from 2004 to 2010. The author requested a response from Lord Goldsmith but received no reply to a series of email messages.

  86 Freedom of Information response from the Attorney General, 4 April 2007, to the Guardian, p. 7 (see n. 35 above).

  87 Ibid., p. 8.

  88 Hansard, 14 December 2006, column 1712, and Hansard, 14 December 2006, Column 1119.

  89 Mark Milner, ‘City shrugs off investigation into bribery allegations at BAE as earnings soar to £1.2bn’, Guardian, 23 February 2007, http://www.guardian.co.uk/business/2007/feb/23/politics.freedomofinformation.

  90 ‘Arms and the man’, Guardian, 15 December 2006, http://www.guardian.co.uk/commentisfree/2006/dec/15/labour.partyfunding.

  91 ‘MI6 and Blair at odds over Saudi deals’, Guardian, 16 January 2007.

  92 ‘Blair: I pushed for end to Saudi arms enquiry’, The Times, 15 December 2006.

  93 Guardian, 13 March 2007 and 14 March 2007.

  94 Guardian, 24 April 2007.

  95 Guardian, 11 June 2007.

  96 Guardian, 7 June 2007.

  97 ‘Police hunt arms trail in Downing Street’, The Times, 20 May 2007.

  98 The letter can be seen at www.theshadowworld.com.

  99 ‘Hermes enters BAE probe fray’, Financial Times, 22 December 2006.

100 ‘F&C express concern over dropping of BAE case’, Guardian, 22 December 2006.

101 Case No: CO/1567/2007, The Queen on the Application of Corner House Research and Campaign against Arms Trade and The Director of the Serious Fraud Office and BAE Systems PLC, Approved Judgment, 10 April 2008, published at http://www.thecornerhouse.org.uk/pdf/document/JR-Judgment.pdf.

102 Ibid.

103 Ibid.

104 Leigh and Evans, ‘BAE: secret papers reveal threats from Saudi prince’ (see n. 74 above).

105 Guardian, 10 April 2008.

106 Ibid.

107 A. C. Grayling, ‘The law triumphant’, Guardian, 15 April 2008, http://www.guardian.co.uk/commentisfree/2008/apr/15/thelawtriumphant.

108 ‘Can we stop grovelling to the Saudis?’, Daily Mail, 11 June 2007, http://www.dailymail.co.uk/debate/columnists/article-461108/Can-stop-grovelling-Saudis.html.

109 ‘Keeper of the Saudi secrets’, The New York Times, 14 June 2007, http://www.nytimes.com/2007/06/14/opinion/14thu3.html?_r=2.

110 David Howarth, ‘Mystery of the Saudi “threat”’, Guardian, 1 August 2008, http://www.guardian.co.uk/commentisfree/2008/aug/01/bae.saudiarabia.

111 R. Cook, Point of Departure (London: Simon & Schuster, 2003).

112 David Leigh, ‘Woolf commands fact-free zone with aplomb’, Guardian, 6 May 2008, http://www.guardian.co.uk/world/2008/may/06/bae.baesystemsbusiness1.

113 Ibid.

114 http://ir.baesystems.com/investors/storage/woolf_report_2008.pdf; Eveline Lubbers and Wil van der Schans, ‘The Threat Response Spy Files’, November 2004, http://www.evel.nl/spinwatch/TRFrontpage.htm; and CAAT, ‘2005 CAAT Steering Committee statement on spying’, http://www.caat.org.uk/about/spying.php.

115 Leigh, ‘Woolf commands fact-free zone with aplomb’ (see n. 112 above).

116 Ibid.

117 David Leigh, ‘The unanswered questions’, Guardian, 7 May 2008, http://www.guardian.co.uk/world/2008/may/07/bae.armstrade.

118 My personal notes taken at the BAE AGM, Queen Elizabeth Conference Centre, 7 May 2008.

119 David Robertson and Matt Spence, ‘BAE pleads guilty to US criminal charge’, The Times, 1 March 2010, http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7046011.ece.

120 ‘BAE announces surprise departure of former chief Sir Dick Evans’, The Times, 30 March 2010.

121 ‘BAE goes big on “green” weapons’, BBC News, 26 October 2006, http://news.bbc.co.uk/1/hi/technology/6081486.stm.

122 Ibid.

123 Ibid.

124 Mark Townsend, ‘BAE drops plans to make “green bullets”’, Guardian, 24 August 2008, http://www.guardian.co.uk/business/2008/aug/24/baesystems.military.

125 David Leigh and Terry Macalister, ‘New BAE investigation doomed to failure, claims chairman’, Guardian, 8 May 2008, http://www.guardian.co.uk/business/2008/may/08/BAesystemsbusiness; there was a similar reaction in 2009 to claims of its being an ethical company: Terry Macalister, ‘Critics attack BAE Systems over attempt to become “ethical” arms firm’, Guardian, 6 May 2009, http://www.guardian.co.uk/business/2009/may/06/baesystems-arms-trade.

126 David Leigh, ‘New head of Serious Fraud Office defies talk of crisis’, Guardian, 18 April 2008, http://www.guardian.co.uk/world/2008/apr/18/bae.foreignpolicy.

127 Simon Bowers, ‘Senior SFO prosecutors quit as new director changes priorities’, Guardian, 10 June 2008, http://www.guardian.co.uk/business/2008/jun/10/3.

128 David Leigh, ‘Law lords: fraud office right to end bribery investigation in BAE case’, Guardian, 31 July 2008, http://www.guardian.co.uk/world/2008/jul/31/bae.armstrade.

129 Ibid.

130 Ibid.

131 ‘Not the last word’, Guardian, 31 July 2008, http://www.guardian.co.uk/commentisfree/2008/jul/31/baesystemsbusiness.saudiarabia.

132 Leigh, ‘Law lords: fraud office right to end bribery investigation in BAE case’ (see n. 128 above).

133 Ibid.

134 ‘Black Money’, Frontline, PBS (see n. 53 above).

135 Drawn from conversations with a number of attendees at the event and also Trevor Maggs, ‘Has staff morale collapsed at the SFO?’, trevormaggs.com, 31 March 2010.

8. And Justice for None?

    1 For an excellent discussion of the burden of evidence in relation to arms-dealing trials, see L. van den Herik, ‘The Difficulties of Exercising Extraterritorial Criminal Jurisdiction: The Acquittal of a Dutch Businessman for Crimes Committed in Liberia’, International Criminal Law Review, Vol. 9 (2009), pp. 211–26.

    2 Doug Farah and Stephen Braun, Merchant of Death (London: John Wiley & Sons, 2007), pp. 192–203.

    3 Ibid.

    4 Ibid., pp. 202–3.

    5 Ibid.

    6 Ibid., p. 203.

    7 D. Farah and S. Braun, ‘The Merchant of Death’, Foreign Policy, 1 November 2006.

    8 ‘Viktor Bout’s Last Deal’, Mother Jones, 18 March 2008.

    9 Farah and Braun, Merchant of Death, Chapter 14; ‘Flying Anything to Anybody’, The Economist, 18 December 2008; and ‘Merchant of Death denies arming terror’, Guardian, 15 March 2009.

  10 ‘W Sieci Terroru’, Tygodnik Nasza Polska, nr 42 (663), 2008.

  11 ‘Monzer Al Kassar: The Prince of Marbella – Arms to All Sides’, Frontline World, PBS, May 2002, www.pbs.org/frontlineworld/stories/sierraleone/alkassar.html; and DEA Public Affairs, ‘DEA investigation nets international arms dealer with ties to terrorist organizations’, press statement, 8 June 2007, www.justice.gov/dea/pubs/states/newsrel/nyc060807.html.

  12 ‘Meet the “Prince of Marbella” – is he really supporting Iraq’s insurgency?’, Observer, 1 October 2006.

  13 An excellent account of the sting operation that led to Al Kassar’s arrest can be found in P. R. Keefe, ‘The Trafficker’, The New Yorker, 8 February 2010.

  14 US Attorney’s Office, ‘International arms trafficker Monzer Al Kassar and associate sentenced on terrorism charges’, press release, 24 February 2009.

  15 Ibid.

  16 ‘Taking Down Arms Dealer Viktor Bout’, Men’s Journal, 12 December 2008.

  17 ‘Mystery Briton is key witness in “Merchant of Death” arms sting’, Sunday Times, 8 February 2009.

  18 Sealed Complaint: Violations of Title 18, United States Code, Sections 2339B and 3238, United States of America v. Viktor Bout (and aliases), Southern District of New York, 27 February 2008, para. 5.

  19 Ibid.

  20 Ibid.

  21 Ibid., para. 7.

  22 Ibid., para. 8.

  23 ‘Missile System Designed to Destroy Aircraft’, US Code Part I, Chapter 113B, § 2332g. Available from www.law.cornell.edu.

  24 Sealed Complaint: United States of America v. Viktor Bout (see n. 18 above), paras. 12–13.

  25 Ibid., para. 16.

  26 Ibid., para. 19.

  27 Ibid., paras. 22 and 24.

  28 C. Hanley, Affidavit in Support of Request for Extradition in the Matter of United States of America v. Viktor Bout (and aliases), Case No. 08, Cr. 365, United States District Court Southern District of New York, 28 April 2008, para. 24.

  29 Ibid., para. 28.

  30 ‘Taking Down Arms Dealer Viktor Bout’, Men’s Journal, 12 December 2008.

  31 ‘Smulian, accused partner of Viktor Bout, is held’, Bloomberg, 11 March 2008.

  32 ‘Mystery Briton is key witness in “Merchant of Death” arms sting’, Sunday Times, 8 February 2009.

  33 J. Milione, Rebuttal Affidavit Concerning Request for Extradition in the Matter of United States of America v. Viktor Bout (and aliases), Case No. 08, Cr. 365, United States District Court Southern District of New York, 17 February 2008.

  34 Judgment: Offense against Act on Extradition in the Matter between the Public Prosecutor (Thailand) and Mr. Viktor Bout, Bangkok Criminal Court, 11 August 2009, Black Case No. 3/2551.

  35 Ibid.

  36 Quoted on ABC World News, 24 October 2009.

  37 ‘Viktor Bout wonders why the US wants him so badly’, Bangkok Post, 16 August 2009.

  38 Judgment: Offense against Act on Extradition (see n. 34 above)

  39 ‘The notorious Mr. Bout’, Washington Post, 13 August 2009.

  40 E. Royce, et al., ‘Letter to Attorney General [Eric] Holder and Secretary of State Clinton re: Viktor Bout’, 11 February 2009.

  41 ‘Alleged arms dealer protected by Russia’, Christian Science Monitor, 24 October 2009.

  42 ‘Why the “Merchant of Death” might not stand trial’, Foreign Policy, 11 August 2009.

  43 Ibid.

  44 Ibid.

  45 Judgment: Offense against Act on Extradition (see n. 34 above).

  46 ‘“Merchant of Death” could face new charges’, Taipei Times, 19 February 2010.

  47 Sealed Complaint: United States of America v. Viktor Bout (and aliases) and Richard Chichakli (and aliases), Southern District of New York, S1 09 Cr. 1002, March 2010.

  48 ‘Suspected Russian arms dealer Viktor Bout to be extradited to US’, Guardian, 20 August 2010.

  49 Ibid.

  50 ‘Arms suspect vows to win case in U.S. after extradition order’, The New York Times, 20 August 2010.

  51 See ‘Viktor Bout has a chance to be back to Russia’, The Voice of Russia, 13 November 2010.

  52 ‘Viktor Bout, suspected Russian arms dealer, extradited to New York’, Guardian, 16 November 2010.

  53 Based on confidential interviews with sources in the Department of Justice and the Department of State, conducted in November 2008 and February 2010.

  54 ‘U.S., Russia face off over alleged arms trafficker’, Washington Post, 23 August 2010.

  55 ‘The inner circle of the Taylor regime’, The Perspective, 1 January 2001.

  56 For a full account of investigations into Kouwenhoven by Global Witness, The Perspective and the UN, see Amnesty International and TransArms, Dead on Time – Arms Transportation, Brokering and the Threat to Human Rights, ACT 30/007/2006, 9 May 2006.

  57 Judgment in the Matter of Public Prosecutors Office (Holland) vs Gus Kouwenhoven, District Court of The Hague (Criminal Law Section), LJN: AY5160/09/750001-05, 7 June 2006.

  58 Ibid., section 2.

  59 Ibid.

  60 Ibid., section 6.

  61 Ibid., section 7.

  62 Ibid.

  63 Ibid.

  64 Ibid., Section 8.

  65 Judgment passed in Appeal Pronounced by the District Court in The Hague on 7 June 2006 in the Criminal Case against Gus Kouwenhoven, 10 March 2008, LJN: BC7373, 09-750001-05.

  66 Van der Herik, ‘The Difficulties of Exercising Extraterritorial Criminal Jurisdiction’, International Criminal Law Review, pp. 218–19.

  67 Ibid., pp. 219–20.

  68 Campagne tegen Wapenhandel, ‘Tussenhandel in wapens onvoldoende aangepakt’, press release, 13 May 2009.

  69 Judgment on Further Appeal of the Court of The Hague on 10 March 2008, Number 22/004337-06 in Criminal Proceedings against Gus Kouwenhoven, Supreme Court, S. No. 08/01322, 20 April 2010.

  70 ‘Anatomy of two arms dealers’, Asia Times, 19 June 2004.

  71 W. Mapelli, ‘Request for the Enforcement of an Order for Pre-Trial Detention – Article 272 et seq. of the Italian Criminal Procedure Code’, Public Prosecutor: Tribunal of Monza, Criminal Records Bureau Number 8644/00/Form 21, 11 June 2011.

  72 Ibid.

  73 Ibid.

  74 Email interview with Walter Mapelli, August 2010.

  75 Ken Silverstein, ‘Comrades in Arms’, Washington Monthly, January/February 2002.

  76 Email interview with Walter Mapelli, August 2010.

  77 Amnesty International and TransArms, Dead on Time, pp. 60–63.

  78 Ibid.

  79 B. Wood, ‘The Prevention of Illicit Brokering of Small Arms and Light Weapons: Framing the Issue’, in Developing a Mechanism to Prevent Illicit Brokering in Small Arms and Light Weapons (Geneva: United Nations Institute for Disarmament Research (UNIDIR), 2007), pp. 4–6.

  80 Interview with source close to the investigation interviewed in Italy, December 2009; and email interview with Walter Mapelli, August 2010.

  81 M. Brunwasser, ‘Leonid Efimovich Minin: From Ukraine, a New Kind of Arms Trafficker’, PBS/Frontline World Investigative Series: ‘Sierra Leone Gun Runners’, May 2002, www.pbs.org/frontlineworld/stories/sierraleone/minin.html.

  82 Email interview with Walter Mapelli, August 2010.

  83 Interview with source close to the investigation interviewed in Italy, December 2009.

Section III: Business as Usual

9. Things Fall Apart – with Help from BAE

    1 This figure, as calculated by the authors, is based on the stated rand cost of the deal until 2008 (which are the only figures given) plus the amount that had been budgeted for the remaining payments until 2011. Interest payments will continue to be made until 2018. To this figure was added an estimate of the ‘hidden’ costs as calculated from data in the South African Treasury’s Affordability Report and from the South African Auditor General. (2008 Estimates of National Expenditure, Vote 19: Defence, p. 379. Available at: www.treasury.gov.za.)

    2 The detail of this deal, and the claims made here, are contained in my books After the Party: A Personal and Political Journey inside the ANC (Jeppestown: Jonathan Ball, 2007) and After the Party: Corruption, the ANC and South Africa’s Uncertain Future (London: Verso, 2009); Paul Holden’s The Arms Deal in your Pocket (Jeppestown: Jonathan Ball, 2008) confirms and expands on these claims. Holden was the principal researcher on this book. For an academic account of the deal and its consequences see A. Feinstein, P. Holden and B. Pace, ‘Corruption and the Arms Trade: Sins of Commission’, in SIPRI Yearbook 2011 (Oxford: OUP, 2011).

    3 ‘Navy fires first salvo in push to keep afloat’, Sunday Times, 8 May 1994.

    4 ‘Guns vs. butter? Corvettes decision looms for new SA’, Weekend Argus, 26 February 1995.

    5 ‘BAE and the Arms Deal: Part 1’, Moneyweb, 14 August 2007, www.moneyweb.co.za.

    6 Ibid.

    7 ‘Strategic Defence Packages: Draft Report of the Auditor-General’, Chapter 5: ‘Advanced Light Fighter Aircraft (ALFA) and Lead-In Fighter Trainer (LIFT)’, undated, Richard Young/C2I2 personal archive (PAIA requests). Used with kind permission of Richard Young.

    8 Ibid.

    9 ‘Strategic Defence Packages: Joint Report’, Chapter 4, 2001, www.info.gov.za; and ‘BAE and the Arms Deal: Part 1’, Moneyweb, 14 August 2007, www.moneyweb.gov.za.

  10 ‘Strategic Defence Packages: Joint Report’, Chapter 4, paragraph 4.3.6.3, www.info.gov.za.

  11 Ibid.

  12 ‘BAE and the Arms Deal: Part 1’, Moneyweb, 14 August 2007, www.moneyweb.co.za.

  13 ‘Strategic Defence Packages: Joint Report, 2001’, Chapter 4, para. 4.51.10, www.info.gov.za.

  14 Ibid., paras 4.5.3.6 and 4.5.5.3.

  15 For an eye-opening study of the role of the use of offsets in the defence trade see J. Brauer and J. P. Dunne (eds.), Arms Trade and Economic Development: Theory, Policy and Cases in Arms Trade Offsets (London: Routledge, 2004).

  16 ‘DA wants review of arms deal offsets’, Pretoria News, 14 September 2010.

  17 ‘South African unions threaten to escalate strike’, BBC News, 26 August 2010.

  18 P. Holden, and H. Van Vuuren, The Devil in the Detail (Jeppestown: Jonathan Ball, forthcoming).

  19 Hansard, ‘National Assembly: Questions and Replies’, Wednesday, 10 October 2001, Vol. 43A, p. 4103.

  20 Draft of introductory chapter, ‘Methodology Employed’, undated, Dr Richard Young personal archive (PAIA requests). Used with kind permission of Dr Richard Young.

  21 ‘PE set to become Viking Mecca’, Eastern Province Herald, 2001; and ‘Local firms line up for foreign gain in arms deal’, Business Report, 6 November 2002.

  22 Y. Jonson and N. Resare, ‘Tourists pay for Jas/Gripen fighter jets’, 6 February 2007. Kindly translated from the original Swedish by Fredrik Sperling.

  23 Ibid.

  24 ‘BAE and the Arms Deal’, Moneyweb, 14 August 2007, www.moneyweb.co.za.

  25 S. Sole and E. Groenink, ‘Pierre Steyn speaks out about the arms deal’, Mail & Guardian, 2 February 2007.

  26 ‘MK boss was bought’, Noseweek, No. 52 (December 2003); P. Kirk, ‘Three foresightful architects’, Citizen, 16 December 2003; and E. Groenink and S. Sole, ‘The musketeers who bought the jets’, Mail & Guardian, 2 February 2007.

  27 South African Government Information Service, ‘National Industrial Participation (NIP) – Defence Summary: Project Description’, September 1999, http://www.info.gov.za/issues/procurement/background/nip.htm.

  28 ‘MK boss was bought’, Noseweek, No. 52 (December 2003); Kirk, ‘Three foresightful architects’; and Groenink and Sole, ‘The musketeers who bought the jets’, Citizen, 16 December 2003, Mail & Guardian, 2 Febuary 2007.

  29 ‘Soldiering ahead in business’, Saturday Star, 6 November 1999; and ‘How Modise wrangled SA’s jet fighter deal’, Mail & Guardian, 3 November 2001.

  30 Feinstein, After the Party (2007), p. 176.

  31 Ibid., p. 177.

  32 G. Murphy, British Serious Fraud Office, Affidavit submitted as Annexure JDP-SW12 in the High Court of South Africa (Transvaal Provincial Division) in the matter of Ex Parte the National Director of Public Prosecutions (applicant) re: an application for issue of search warrants in terms of Section 29(5) and 29(6) of the National Prosecuting Authority Act, No. 32 of 1998, as amended (2008).

  33 Ibid.

  34 Ibid.

  35 Ibid.

  36 Ibid.

  37 ‘The arms dealer who could bring down Zuma’, Independent, 27 November 2008; ‘Millionaire accused of propping up Mugabe’, Guardian, 27 November 2008; and ‘Smoke, sex and the arms deal’, Mail & Guardian, 28 October 2008.

  38 ‘Treasury Designates Mugabe Regime Cronies’, statement issued by the United States Department of the Treasury, 25 November 2008; and Council Decision 2011/101/CFSP of 15 February 2011 concerning restrictive measures against Zimbabwe, in the Official Journal of the European Union, 16 February 2011; and the Department of the Treasury, Office of Foreign Assets Control, ‘Specially Designated Nationals and Blocked Persons’, 21 June 2011, http://www.treasury.gov/ofac/downloads/t11sdn.pdf.

  39 G. Murphy, British Serious Fraud Office, Affidavit (see n. 32 above).

  40 Ibid.

  41 Ibid.

  42 Stefaans Brümmer and Sam Sole, ‘The house the arms deal bought’, Mail & Guardian, 3 December 2010.

  43 Ibid.

  44 Holden, Arms Deal in Your Pocket.

  45 Feinstein, After the Party; and www.theshadowworld.com for ‘Memorandum from ThyssenKrupp Executive Confirming Bribe to “Chippy” Shaik, Head of Procurement in the South African National Defence Force’.

  46 Judgment in the Constitutional Court of South Africa, Case CCT 86/06 [2008] ZACC7, Schabir Shaik (and his companies) versus the State, decided on 29 May 2008.

  47 ‘Ruling was not Mpshe’s to make’, Cape Argus, 8 May 2009.

  48 ‘Action against Schabir Shaik welcomed’, Mail & Guardian, 14 March 2011.

  49 Pride Chigwedere, George Seage III, Sofia Gruskin, Tun-Hou Lee and Max Essex, ‘Estimating the Lost Benefits of Antiretroviral Drug Use in South Africa’, JAIDS Online, 16 October 2008.

  50 Holden and Van Vuuren, Devil in the Detail; and ‘R70 000 000 000’, City Press, 10 April 2011.

  51 Ibid.

  52 Ibid.

  53 Ibid.

  54 Ibid.

  55 ‘SA groaning under the weight of patronage and corruption’, Business Day, 22 June 2009.

  56 Mail & Guardian editorial, 12 January 2007.

  57 ‘Funds pinch may ground SA’s R10bn Gripen fleet’, Business Day, 26 October 2010.

  58 ‘Air force boss slams poor state of affairs’, The Times, 4 April 2010.

  59 Ibid.

  60 Extrapolated from contracts LGS/S2010/4406 and ELGS/2006/193 (including yearly extensions). Available for download from www.armscor.co.za.

  61 ‘The dud sub’, The Times, 3 August 2008.

  62 At the time of the deal Tanzania was 151st on the UN’s Human Development Index, out of 173 countries.

  63 ‘BAE in new corruption probe as Tanzanian minister resigns’, Daily Mail, 21 April 2008, http://www.dailymail.co.uk/news/article-561000/bae-new-corruption-probe-Tanzanian-minister-resigns-500-000-bribery-claim.html.

  64 ‘Military radar probe: The key suspects … And the case against them’, This Day, 15 February 2010, http://www.thisday.co.tz/?l=10648.

  65 ‘Tanzania’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/07/bae9.

  66 The predecesor to the Department for International Development.

  67 Clare Short, ‘BAE’s government-backed rip-off’, Guardian, ‘Comment is Free’, 1 October 2009, http://www.guardian.co.uk/commentisfree/2009/oct/01/bae-deal-blair-sfo.

  68 ‘BAE: the Tanzanian connection’, Today, BBC Radio 4, 1 October 2009, http://news.bbc.co.uk/today/hi/today/newsid_8284000/8284510.stm.

  69 Rob Evans and Paul Lewis, ‘BAE deal with Tanzania: military air traffic control – for country with no airforce’, Guardian, 6 February 2010, http://www.guardian.co.uk/world/2010/feb/06/bae-tanzania-arms-deal.

  70 ‘Tanzania’, Guardian (see n. 65 above).

  71 ‘Tanzania radar sale “waste of cash”’, BBC News, 14 June 2002, http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm.

  72 ‘BAE: the Tanzanian connection’, Today (see n. 68 above)

  73 ‘Tanzania radar sale “waste of cash”’, BBC News (see n. 71 above).

  74 ‘Tanzania “needs costly radar system”’, BBC News, 21 December 2001, http://news.bbc.co.uk/1/hi/uk_politics/1723728.stm.

  75 ‘Tanzania radar sale “waste of cash”’, BBC News (see n. 71 above).

  76 ‘BAE: the Tanzanian connection’, Today (see n. 68 above).

  77 Ibid.

  78 ‘Tanzania’, Guardian (see n. 65 above).

  79 ‘BAE: the Tanzanian connection’, Today (see n. 68 above).

  80 David Hencke, Charlotte Denny and Larry Elliot, ‘Tanzania aviation deal “a waste of money”’, Guardian, 14 June 2002, http://www.guardian.co.uk/uk/2002/jun/14/politics.tanzania.

  81 Charlotte Denny, ‘Backlash over costly hi-tech for Tanzania’, Guardian, 21 December 2001, http://www.guardian.co.uk/world/2001/dec/21/tanzania.politics.

  82 ‘Radar sale threatens aid to Tanzania’, BBC News, 20 March 2002, http://news.bbc.co.uk/1/hi/uk_politics/1882651.stm.

  83 ‘Tanzania “needs costly radar system”’, BBC News (see n. 74 above).

  84 Ibid.

  85 Patrick Wintour and Charlotte Denny, ‘Overruled: Short loses in aid row’, Guardian, 20 December 2001, http://www.guardian.co.uk/politics/2001/dec/20/uk.Whitehall.

  86 David Hencke, ‘Ministers at odds over £28m deal’, Guardian, 20 March 2002, http://www.guardian.co.uk/politics/2002/mar/20/armstrade.foreignpolicy.

  87 ‘Tanzania responds to air traffic furore’, BBC News, 29 January 2002, http://news.bbc.co.uk/1/hi/world/africa/1788922.stm; ‘Backlash over costly hi-tech for Tanzania’, Guardian, 21 December 2001, http://www.guardian.co.uk/world/2001/dec/21/tanzania.politics; and ‘Overruled: Short loses in aid row’, Guardian, 20 December 2001, http://www.guardian.co.uk/politics/2001/dec/20/uk.Whitehall.

  88 ‘Overruled: Short loses in aid row’, Guardian, 20 December 2001, http://www.guardian.co.uk/politics/2001/dec/20/uk.Whitehall.

  89 ‘Tanzania radar sale “waste of cash”’, BBC News (see n. 71 above).

  90 Clare Short, ‘BAE’s government-backed rip-off’ (see n. 67 above).

  91 Ibid.

  92 ‘Radar sale threatens aid to Tanzania’, BBC News (see n. 82 above). As the scandal intensified the House of Lords attempted to amend a new Act before Parliament, by adding a test for whether an arms export deal is compatible with sustainable development, as contained in the EU Common Position. Patricia Hewitt and Geoff Hoon attempted to have the amendment excised, arguing again that British jobs should trump any other consideration. They also pointed out that the Tanzanian export licence would be revoked if the amendment was successful. The legislative outcome, as so often, was a fudge.

  93 ‘Short to visit Tanzania as fraud claims fly’, Guardian, 26 June 2002, http://www.guardian.co.uk/politics/2002/jun/26/tanzania.foreignpolicy.

  94 David Leigh, ‘The arms deal, the agent and the Swiss bank account’, Guardian, 15 January 2007, http://www.guardian.co.uk/world/2007/jan/15/bae.freedomofinformation.

  95 Ibid.

  96 ‘10 questions that Tanil Somaiya should answer’, This Day, http://www.jamiiforums.com/jukwaa-la-siasa/28304-tanil-somaiya-kukutana-na-waandishi-5.html.

  97 Leigh, ‘The arms deal, the agent and the Swiss bank account’ (see n. 94 above).

  98 ‘10 questions that Tanil Somaiya should answer’, This Day (see n. 96 above).

  99 ‘Military radar probe’, This Day (see n. 64 above).

100 ‘Tories launch challenge over corruption claims in $40m radar sale to Tanzania’, Guardian, 30 January 2007, http://www.guardian.co.uk/politics/2007/jan/30/conservatives.foreignpolicy.

101 ‘Military radar probe’, This Day (see n. 64 above).

102 Ibid.

103 Leigh, ‘The arms deal, the agent and the Swiss bank account’ (see n. 94 above).

104 Ibid.

105 ‘Tories launch challenge over corruption claims in $40m radar sale to Tanzania’, Guardian (see n. 100 above).

106 ‘10 questions that Tanil Somaiya should answer’, This Day (see n. 96 above).

107 ‘Military radar probe’, This Day (see n. 64 above).

108 ‘10 questions that Tanil Somaiya should answer’, This Day (see n. 96 above).

109 ‘93bn military trucks deal’, This Day, http://www.jamiiforums.com/jukwaa-la-siasa/2740-93bn-military-trucks-deal-2.html.

110 Ibid.

111 ‘10 questions that Tanil Somaiya should answer’, This Day (see n. 96 above).

112 ‘Tanzania’, Guardian (see n. 65 above).

113 ‘Military radar probe’, This Day (see n. 64 above); and ‘Tanzanian minister quits over BAE investigation’, Guardian, 22 April 2008, http://www.guardian.co.uk/politics/2008/apr/22/defence.bae.

114 ‘Military radar probe’ (see n. 64 above).

115 Account Number: 59662999; Bank Code Number: 204505.

116 ‘Dr Edward Hosea corners SFO’, Guardian, 14 February 2010, http://www.jamiiforums.com/habari-na-hoja-mchanganyiko/52982-dr-edward-hosea-corners-sfo.html.

117 ‘Military radar probe’, This Day (see n. 64 above).

118 Ibid.

119 J. Lewis Madorsky of Cleveland, Ohio, in the US, and Goodman Derrick LLP of the UK.

120 ‘Military radar probe’, This Day (see n. 64 above).

121 Ibid.

122 ‘Your office may have been bugged by BAE, investigators told MP’, Daily Mail, 3 October 2009, http://www.dailymail.co.uk/news/article-1217919/Your-office-bugged-bae-investigators-told-MP.html.

123 ‘BAE Systems: “Liberal Democrat Norman Lamb’s bugging claim is preposterous”’, Daily Telegraph, 4 October 2009, http://www.telegraph.co.uk/finance/newsbysector/industry/6259700/BAE-Systems-Liberal-Democrat-Norman-Lambs-bugging-claim-is-preposterous.html. Retrieved 8 August 2010.

124 ‘Your office may have been bugged by BAE, investigators told MP’, Daily Mail (see n. 122 above).

125 ‘Tories launch challenge over corruption claims in $40m radar sale to Tanzania’, Guardian (see n. 100 above).

126 ‘BAE’s Dick Olver rejects Government’s UK trade post’, Daily Telegraph, 16 July 2010, http://www.telegraph.co.uk/finance/newsbysector/epic/badot/7893149/BAEs-Dick-Olver-rejects-Governments-UK-trade-post.html.

127 ‘US embassy cables: BAE’s “dirty deal” to sell radar to Tanzania revealed’, Guardian, 19 December 2010, http://www.guardian.co.uk/world/us-embassy-cables-documents/116436.

10. After the Wall: Capitalism BAE-Style

    1 Interview with Alfons Mensdorff-Pouilly, Vienna, 3 September 2010.

    2 ‘Austrian count claims small underpants breached his human rights’, Daily Telegraph, 12 February 2010, http://www.telegraph.co.uk/news/worldnews/europe/austria/7222007/Austrian-count-claims-small-underpants-breached-his-human-rights.html.

    3 ‘BAE “bribery” lobbyist faces new investigations’, Austrian Times, 24 March 2010, http://www.austriantimes.at/news/Business/2010-03-24/21888/BAE_%27bribery%27_lobbyist_faces_new_investigations.

    4 Interview with the author John Besant on Uppdrag Granskning and Dagens Eko; ‘Brigadier Timothy Landon: the extraordinary life of the white sultan’, Independent, 12 July 2007, http://www.independent.co.uk/news/world/middle-east/brigadier-timothy-landon-the-extraordinary-life-of-the-white-sultan-456942.html; ‘Brigadier Tim Landon’, Daily Telegraph, 12 July 2007, http://www.telegraph.co.uk/news/obituaries/1557161/Brigadier-Tim-Landon.html; and ‘Brigadier Tim Landon’, The Times, 20 July 2007.

    5 Interview with Alfons Mensdorff-Pouilly, Vienna, 3 September 2010.

    6 BAE Sentencing Memorandum, CRIMINAL NO.: 1:10-cr-035 (JDB), US Department of Justice, http://www.justice.gov/criminal/pr/documents/03-01-10%20bae-sentencing-memo.pdf.

    7 Sam Sole, ‘BAE’s global bribing campaign’, Mail & Guardian, 12 February 2010, http://www.mg.co.za/article/2010-02-12-baes-global-bribing-campaign.

    8 David Leigh and Rob Evans, ‘BAE chiefs “linked to bribes conspiracy”’, Observer, 7 February 2010, http://www.guardian.co.uk/world/2010/feb/07/bae-chiefs-linked-bribes-conspiracy.

    9 Ibid.

  10 Ibid.

  11 Vaclav Havel, The Art of the Impossible: Politics as Morality in Practice (New York: Knopf, 1997).

  12 Sven Bergman, Joachim Dyfvermark and Fredrik Laurin, ‘Gripen – the secret agreements’, Uppdrag Granskning, 20 February 2007, transcript at http://svt.se/content/1/c8/01/44/71/73/The%20Secret%20Agreement.pdf.

  13 Rob Evans and Ian Traynor, ‘US accuses British over arms deal bribery bid’, Guardian, 12 June 2003, http://www.guardian.co.uk/uk/2003/jun/12/politics.military.

  14 Mark Milner, ‘BAE contract swept away by Czech floods’, Guardian, 20 August 2002, http://www.guardian.co.uk/business/2002/aug/20/naturaldisasters.weather.

  15 Magnus Bennett, ‘UK may give air force free fighter planes’, Prague Post, 15 May 2003, http://www.praguepost.com/archivescontent/37288-uk-may-give-air-force-free-fighter-planes.html.

  16 David Leigh and Rob Evans, ‘Czech Republic’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/07/bae23.

  17 Magnus Bennett, ‘Jet deal criticized for lack of tender’, Prague Post, 24 April 2003, http://www.praguepost.com/archivescontent/37153-jet-deal-criticized-for-lack-of-tender.html.

  18 United States Department of State, Briefing Memorandum, ‘To: EB – E. Anthony Wayne, From: EB/IFD – Janice F. Bay, Subject: Your Meeting with UK MOD Permanent Under Secretary Kevin Tebbit, Friday July 19, 10 a.m. (15 minutes)’, http://image.guardian.co.uk/sys-files/Guardian/documents/2010/04/23/BAETebbitWayne.pdf.

  19 Ibid.

  20 Ibid.

  21 Ibid.

  22 Ibid.

  23 Nelson D. Schwartz and Lowell Bergman, ‘Payload: taking aim at corporate bribery’, The New York Times, 25 November 2007, http://www.nytimes.com/2007/11/25/business/25bae.html?pagewanted=3&_r=2.

  24 Evans and Traynor, ‘US accuses British over arms deal bribery bid’ (see n. 13 above).

  25 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  26 Ibid.

  27 Ibid.

  28 Ben Schiller, ‘Agency investigates Senate Gripen vote’, Prague Post, 20 November 2002, http://www.praguepost.com/archivescontent/36226-agency-investigates-senate-gripen-vote.html.

  29 ‘Postview’, Prague Post, 23 December 2003, http://www.praguepost.com/archivescontent/38465-postview.html.

  30 František Bouc, ‘Dark Clouds’, Prague Post, 5 May 2005, http://www.praguepost.com/archivescontent/40980---dark-%3Cbr%3E%3Cbr%3Eclouds.html. In addition, some 20 per cent of indirect offset investments would go into environmental projects, 16 per cent to electronic firms, 11 per cent to the transport sector and 10 per cent to the iron and steel sector. The Industry and Trade Minister, Milan Urban, then said that around half of the projects would boost exports of Czech industrial products abroad, while 40 per cent of the projects featured investment in the country and 10 per cent would be invested in research and development.

  31 Ibid.

  32 Ibid.

  33 Ibid.

  34 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  35 Ibid.

  36 Ibid.

  37 Ibid.

  38 Ibid.

  39 This is a mock-up of the agreement based on the information provided to me by Fredrik Laurin.

  40 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  41 Ibid.

  42 Ibid.

  43 David Leigh and Rob Evans, ‘Count named in BAE corruption inquiry’, Guardian, 21 February 2007, http://www.guardian.co.uk/business/2007/feb/21/arms.uknews.

  44 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  45 Ben Schiller, ‘BAE confirms Omnipol purchase’, Prague Post, 8 May 2003, http://www.praguepost.com/archivescontent/37257-bae-confirms-omnipol-purchase.html.

  46 This is a mock-up of the agreement based on the information provided to me by Fredrik Laurin.

  47 Leigh and Evans, ‘Czech Republic’ (see n. 16 above).

  48 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  49 Ibid.

  50 Ibid.

  51 This company was used in a fraud scheme unrelated to Jelinek. See Indictment United States against Frank Dolney, Nick Pirgousis, Quentin Quintana, Joseph Ferragamom, John Donadio, Rocco J. Donadio, William G. Brown, Gary Todd, Mario Casias, Vladimir Ziskind, Vlad Goldenberg, CR no. 04-159, http://www.justice.gov/usao/nye/vw/PendingCases/CR-04-159_Indictment_US_v_FRANK_DOLNEY.pdf.

  52 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  53 Leigh and Evans, ‘Count named in BAE corruption inquiry’ (see n. 43 above).

  54 This is a mock-up of the lease agreement based on the information provided to me by Fredrik Laurin.

  55 ‘Brigadier Timothy Landon’, Independent (see n. 4 above); and Ulla Schmid and Martin Staudinger, ‘Die einfachen Geschäftsverbindungen des kleinen Bauern Alfons M.’, Profil, 15 February 2010.

  56 Schmid and Staudinger, ‘Die einfachen Geschäftsverbindungen’.

  57 Ibid.

  58 David Leigh and Rob Evans, ‘Austria set to prosecute over BAE arms sales’, Guardian, 19 June 2009, http://www.guardian.co.uk/world/2009/jun/19/austria-bae-arms-sales.

  59 Schmid and Staudinger, ‘Die einfachen Geschäftsverbindungen’.

  60 Ulla Schmid, ‘Der Fall Mensdorff-Pouilly: Neue Spuren führen nach Liechtenstein’, Profil, 24 January 2011, http://www.profil.at/articles/1104/560/287153/der-fall-mensdorff-pouilly-neue-spuren-liechtenstein.

  61 Ibid.

  62 Schmid and Staudinger, ‘Die einfachen Geschäftsverbindungen’; and ‘Tote reden nicht’, Profil, 9 March 2009. Hamsa died in his early forties of a heart attack in 2007.

  63 Schmid and Staudinger, ‘Die einfachen Geschäftsverbindungen’; ‘Tote reden nicht’, Profil, 9 March 2009; and G. Murphy, British Serious Fraud Office, Affidavit submitted as Annexure JDP-SW12 in the High Court of South Africa (Transvaal Provincial Division) in the matter of Ex Parte the National Director of Public Prosecutions (applicant) re: an application for issue of search warrants in terms of Section 29(5) and 29(6) of the National Prosecuting Authority Act, No. 32 of 1998, as amended (2008), Annexure B, p. 8.

  64 Derived from Schmid and Staudinger, ‘Die einfachen Geschäftsverbindungen’.

  65 Sven Bergman, Joachim Dyfvermark and Fredrik Laurin, ‘Gripen – under cover’, Uppdrag Granskning, 27 February 2007, http://svt.se/content/1/c8/01/44/71/73/Transcript%20Jan%20Kavan.pdf.

  66 Ibid.

  67 Ibid.

  68 ‘Case of Kavan’s safe shelved – press’, CTK Daily News, 11 February 2003; ‘The trials and more trials of Jan Kavan’, Prague Post, 22 July 1998, http://www.praguepost.com/archivescontent/28792-the-trials-trials-and-more-trials-of-jan-kavan.html; and ‘Murky case of the hitman and her leaves Czechs shaken’, Scotsman, 13 August 2002.

  69 Bergman et al., ‘Gripen – under cover’ (see n. 65 above).

  70 Ibid.

  71 Ibid.

  72 Ibid.

  73 Ibid.

  74 Ibid.

  75 Ibid.

  76 Kavan in a letter and oral communication to SVT – Swedish Public Broadcasting – 19 February 2007.

  77 Bergman et al., ‘Gripen – under cover’ (see n. 65 above).

  78 Ibid.

  79 ‘Bribery rumours’, letter, Guardian, 16 March 2007, http://www.guardian.co.uk/politics/2007/mar/16/freedomofinformation.uk; and František Bouc, ‘Gripen corruption probe deepens’, Prague Post, 7 March 2007, http://www.praguepost.com/archivescontent/3169-gripen-corruption-probe-deepens.html.

  80 Bergman et al., ‘Gripen – the secret agreements’ (see n. 12 above).

  81 Ibid.

  82 Ibid.

  83 Ibid.

  84 Ibid.

  85 Sven Bergman, Joachim Dyfvermark and Fredrik Laurin, ‘Gripen – the Hungarian deal’, Uppdrag Granskning, 5 June 2007, http://svt.se/content/1/c8/01/44/71/73/Gripen%20Hungary.pdf.

  86 Sven Bergman, Joachim Dyfvermark and Fredrik Laurin, ‘The Gripen–Valurex International’, script, Uppdrag Granskning, 27 February 2007, http://svt.se/content/1/c8/01/44/71/73/Valurex.pdf.

  87 Ibid.

  88 Ibid.

  89 ‘Fraud complaint against Mensdorff-Pouilly in Eurofighter case’, Austrian Times, 22 December 2008.

  90 Ibid.; and William Green, ‘Mensdorff-Pouilly family grave vandalised’, Austrian Times, 3 September 2009, http://www.austriantimes.at/news/General_News/2009-09-03/16082/Mensdorff-Pouilly_family_grave_vandalised.

  91 ‘Fraud complaint against Mensdorff-Pouilly in Eurofighter case’, Austrian Times, 22 December 2008.

  92 ‘BAE bribery Count’s jail time extended’, Austrian Times, 16 March 2009, http://www.austriantimes.at/news/Business/2009-03-16/11827/BAE_bribery_Count%B4s_jail_time_extended.

  93 ‘New investigation calls as BAE lobbyist walks free’, Austrian Times, 8 February 2010, http://www.austriantimes.at/news/Business/2010-02-08/20407/New_investigation_calls_as_BAE_lobbyist_walks_free.

  94 Interview with Alfons Mensdorff-Pouilly, Vienna, 3 September 2010.

  95 Response to question by Vince Cable MP, Hansard, 23 January 2007, Column 1666W.

  96 Rob Evans, ‘Fraud investigators raid BAE agent’s Austria home’, Guardian, 30 September 2008, http://www.guardian.co.uk/world/2008/sep/30/BAE.

  97 ‘BAE Systems lobbyist held on bribery charges’, Bloomberg, 28 February 2009, http://gulfnews.com/business/general/bae-systems-lobbyist-held-on-bribery-charges-1.55459.

  98 ‘Former BAE agent charged with corruption’, SFO press release, 29 January 2010, http://www.sfo.gov.uk/press-room/latest-press-releases/press-releases-2010/former-bae-agent-charged-with-corruption.aspx.

  99 Rob Evans and David Leigh, ‘Gummer backs count’s plea for bail in BAE case’, Guardian, 4 February 2010, http://www.guardian.co.uk/business/2010/feb/04/bae-austrian-bribes-gummer-mensdorff.

100 Leigh and Evans, ‘Austria set to prosecute over BAE arms sales’ (see n. 58 above); and interview with Austrian prosecutor, Vienna, 3 September 2010.

101 ‘FBI to probe Gripen scam’, Czech News, 25 November 2009, http://aktualne.centrum.cz/czechnews/clanek.phtml?id=653955.

102 Klára Jirˇicˇná, ‘Gripen inquiry ordered reopened’, Prague Post, 5 May 2010, http://www.praguepost.com/news/4332-gripen-inquiry-ordered-reopened.html.

103 David Leigh and Rob Evans, ‘Meeting of prosecutors increases BAE pressure’, Guardian, 3 May 2007, http://www.guardian.co.uk/world/2007/may/03/bae.armstrade.

104 ‘JAS Gripen – inquiry is dropped’, Uppdrag Granskning, 17 June 2009, http://svt.se/2.101059/1.1597705/jas_gripen_–_inquiry_is_dropped.

105 Ibid.

106 Ibid.

107 Ibid.

108 Ibid.

109 Email communication with the office of Vaclav Havel, 17 September 2010.

110 Nelson D. Schwartz and Lowell Bergman, ‘Payload: taking aim at corporate bribery’, The New York Times, 25 November 2007, http://www.nytimes.com/2007/11/25/business/25bae.html?pagewanted=3&_r=2.

111 Népszabadság, 2 March 2009.

112 Ibid.

113 ‘New York Times alleges bribery in Hungarian Gripen purchases’, Politics.Hu, 27 November 2007, http://www.politics.hu/20071127/new-york-times-alleges-bribery-in-hungarian-gripen-purchases.

114 ‘Hungary inks Gripen lease MoU’, Defence Daily, 27 November 2001, http://findarticles.com/p/articles/mi_6712/is_38_212/ai_n28875765/.

115 Leigh and Evans, ‘Austria set to prosecute over BAE arms sales’ (see n. 58 above).

116 Bergman et al., ‘Gripen – the Hungarian deal’ (see n. 85 above).

117 Ibid.

118 Ibid.

119 Ibid.

120 AFP, ‘Hungary to probe Gripen deal’, The Local, 18 June 2007, http://www.thelocal.se/7643/20070618/.

121 ‘New York Times alleges bribery’, Politics.Hu (see n. 113 above); and http://www.budapesttimes.hu/index.php?option=com_content&task=view&id=2326&Itemid=134.

122 Interview with Alfons Mensdorff-Pouilly, Vienna, 3 September 2010.

123 Ibid.

124 Ibid.

125 Ibid.

126 Drawn from Anthony Sampson, The Arms Bazaar (London: Hodder and Stoughton, 1977).

127 SIPRI Military Expenditure Database, http://milexdata.sipri.org. Accessed 31 July 2011. In 2010, Sweden was the seventh-largest arms supplier in the world.

128 Quoted in The New York Times, 11 April 2008.

129 ‘India rejects Saab Gripen fighter bid’, The Local, 28 April 2011.

130 Swedish Peace and Arbitration Society, As the Carousel Spins Weapons: A Report on the Swedish Military-Industrial Complex and 10 of Its Most Powerful Players, September 2010; and The New York Times,17 May 1987.

131 This account is drawn from Forbes magazine, 30 July 1997, Merinews, 5 March 2007, The Times of India, various dates, The New York Times, 1 March 1997, and conversations with an investigative reporter involved in breaking the story.

132 Quoted in ‘Bofors has risen again’, The Hindu, 6 January 2011.

133 ‘Bofors: BJP wants PM to apologise’, The Hindu, 5 January 2011.

134 Quoted in ‘Bofors has risen again’, The Hindu, 6 January 2011.

135 ‘Cong unfazed; BJP wants SIT probe into Bofors kickbacks’, Indian Express, 4 January 2011.

136 ‘No political pressure on Bofors gun: army chief’, Indo-Asian News Service, 26 September 2001.

137 Pranay Gupte and Rahul Singh, ‘Money! Guns! Corruption!’, Forbes, 7 July 1997, http://www.forbes.com/forbes/1997/0707/6001112a.html.

138 Interview with Thomas Tjäder at ISP in Stockholm, 25 November 2010.

139 Celsius was owned by the state, before being bought by Saab.

140 Swedish Peace and Arbitration Society, As the Carousel Spins Weapons.

11. The Ultimate Cop-Out

    1 ‘BAE Systems plc’, SFO press release, 5 February 2010, http://www.sfo.gov.uk/press-room/latest-press-releases/press-releases-2010/bae-systems-plc.aspx.

    2 Director of the Serious Fraud Office Summary Grounds for Contesting the Claim, para. 18, http://www.caat.org.uk/issues/BAe/jr/SFO_Grounds_2010-3-10.pdf.

    3 Gleaned from sources close to the investigation.

    4 BAE Sentencing Memo, CRIMINAL NO.: 1:10-cr-035 (JDB), http://www.justice.gov/criminal/pr/documents/03-01-10%20bae-sentencing-memo.pdf.

    5 Quoted in ‘BAE admits guilt over corrupt arms deals’, Guardian, 6 February 2010.

    6 Ibid.

    7 Ibid.

    8 ‘Attorney General’s Guidelines on Plea Discussions in cases of Serious or Complex Fraud’, 18 March 2009, http://www.attorneygeneral.gov.uk/Publications/Documents/AG%27s%20Guidelines%20on%20Plea%20Discussions%20in%20Cases%20of%20Serious%20or%20Complex%20Fraud.pdf. On p. 6: ‘In deciding whether or not to accept an offer by the defendant to plead guilty, the prosecutor will follow sections 7 and 10 of the Code relating to the selection of charges and the acceptance of guilty pleas. The prosecutor should ensure that: The investigating officer is fully apprised of developments in the plea discussions and his or her views are taken into account.’

    9 This comment is from a senior lawyer in the private sector who was close to the SFO investigation.

  10 ‘Courts could tear up BAE plea bargain’, Daily Mail, 8 May 2010; and Susan Hawley, ‘Innospec ruling forces major change to SFO approach to dealing with overseas corruption’, Corruption Watch, 19 April 2010, http://corruptionwatch-uk.org/2010/04/19/first-uk-executive-jailed-for-bribery/.

  11 ‘Note for Opening’, Regina v. BAE Systems PLC, Southwark Crown Court, 20 December 2010, http://www.sfo.gov.uk/media/133543/bae%20opening%20statement%2020.12.10.pdf; ‘Judgement’, Regina v. BAE Systems PLC, Southwark Crown Court, 21 December 2010, http://www.judiciary.gov.uk/media/judgments/2010/r-v-bae-systems-plc; and notes taken in court by Barnaby Pace.

  12 Ibid.

  13 Notes taken in court by Barnaby Pace.

  14 ‘Judgement’, Regina v. BAE Systems PLC, Southwark Crown Court, 21 December 2010 (see n. 11 above); and notes taken in court by Barnaby Pace.

  15 ‘Note for Opening’, Regina v. BAE Systems PLC, Southwark Crown Court, 20 December 2010 (see n. 11 above); ‘Judgement’, Regina v. BAE Systems PLC, Southwark Crown Court, 21 December 2010 (see n. 11 above); and notes taken in court by Barnaby Pace.

  16 Ibid.

  17 Quoted in ‘Arms deal details consigned to dark’, Business Day, 8 February 2010.

  18 Ibid.

  19 Andrew Feinstein, After the Party: Corruption, the ANC and South Africa’s Uncertain Future (London: Verso, 2010), pp. 260–63.

  20 Ibid., p. 282.

  21 Ibid., p. 285.

  22 Ibid., p. 284.

  23 Ibid.; and ‘Why I let Fana Hlongwane off the hook – Simelane’, Politcsweb, 21 March 2010. Also see ‘Hlongwane order dropped’, News24, 19 March 2010.

  24 This document can be viewed at www.theshadowworld.com.

  25 ‘Result of Saab’s ongoing internal investigation regarding South African consultant contract’, press statement issued by Saab Group, 20 May 2011, www.saabgroup.com. Downloaded 20 May 2011.

  26 ‘Saab completes internal investigation regarding consultant contract in South Africa’, press statement issued by Saab Group, 16 June 2011, www.saabgroup.com. Downloaded 16 June 2011.

  27 Ibid.

  28 Ibid.

  29 D. Maynier, ‘The Fana Hlongwane documents – David Maynier’, Politicsweb, 23 June 2011, www.politicsweb.co.za.

  30 The document can be viewed at www.theshadowworld.com.

  31 Abduel Elinanza, ‘Dar to probe radar scandal despite $46m payout’, AllAfrica, 15 February 2010, http://allafrica.com/stories/201002150075.html. Retrieved 8 August 2010.

  32 ‘Dr Edward Hosea corners SFO’, Guardian on Sunday, 14 February 2010, http://www.jamiiforums.com/habari-na-hoja-mchanganyiko/52982-dr-edward-hosea-corners-sfo.html. Retrieved 8 August 2010.

  33 ‘Confirmed: Radar billions destined to local charities’, Guardian on Sunday, 14 March 2010, http://www.ippmedia.com/frontend/index.php?l=14439. Retrieved 8 August 2010.

  34 ‘Chenge gets clean bill on radar scam’, The Citizen, 9 November 2010; Chenge was not elected Speaker.

  35 ‘Chenge case not yet closed, says UK’, The Citizen, 11 November 2010.

  36 Thomas Hochwarter, ‘MPs’ anger over Mensdorff-Pouilly’, Wiener Zeitung, 8 February 2010, http://www.wienerzeitung.at/DesktopDefault.aspx?TabID=4082&Alias=wzo&cob=470621; the Schengen area comprises the twenty-five European countries who have entered into the Schengen Agreement.

  37 Michael Peel, ‘BAE deal saw count’s bribes case dropped’, Financial Times, 21 April 2010.

  38 Ibid.

  39 Campaign against the Arms Trade, Corner House v. Director of the Serious Fraud Office, BAE Systems and Count Alfons Mensdorff Pouilly, ‘Reply to defendants and first interested party’s summary grounds’, High Court, 17 March 2010, http://www.caat.org.uk/issues/BAe/jr/Reply_2010-03-17.pdf.

  40 ‘Money! Guns! Corruption!’, Forbes, 7 July 1997.

Section IV: The Arms Superpower

12. Legal Bribery

    1 Quoted in Eugene Jarecki, The American Way of War (New York: Free Press, 2008), p. 52, from whom for this section is drawn.

    2 Eugene Jarecki, Why We Fight, Sony Pictures Classics, 2005.

    3 Quoted in Jarecki, American Way of War, p. 53.

    4 Jarecki, American Way of War, pp. 53–5 and 57–61; and Garry Wills, Bomb Power: The Modern Presidency and the National Security State (New York: Penguin Books, 2010).

    5 Jarecki, American Way of War, pp. 53–5 and 57–61.

    6 Calculated in constant inflation-adjusted 2005 dollars from the Pentagon’s National Defense Budget Estimates, http://comptroller.defense.gov/defbudget/fy2011/FY11_Green_Book.pdf.

    7 Jarecki, American Way of War, pp. 77–8.

    8 Ibid., pp. 85–9 and 96.

    9 Ibid., p. 140.

  10 Ibid., p. 145.

  11 Ibid., pp. 144–6.

  12 Ibid., pp. 149–51.

  13 Ibid., pp. 151–4.

  14 Ibid., pp. 154 and 159.

  15 Calculated in constant inflation-adjusted 2005 dollars from the Pentagon’s National Defense Budget Estimates, http://comptroller.defense.gov/defbudget/fy2011/FY11_Green_Book.pdf.

  16 Quoted in Jarecki, American Way of War, pp. 191–2.

  17 Ibid.; and James Ledbetter, Unwarranted Influence: Dwight D. Eisenhower and the Military-Industrial Complex, Yale University Press, 2010.

  18 ‘Unindicted and Misunderstood’, Slate, 9 February 2010.

  19 Murtha’s earmarks keep airport aloft’, Washington Post, 19 April 2009.

  20 ‘John Murtha dies’, Washington Post, 9 February 2010.

  21 ‘Unindicted and Misunderstood’, Slate, 9 February 2010.

  22 ‘The Murtha Method’, Center for Public Integrity, 8 September 2009.

  23 ‘PMA lobbyist pleads guilty’, Center for Public Integrity, 27 September 2010.

  24 ‘Murtha’s nephew got defense contracts’, Washington Post, 5 May 2009.

  25 Ibid.

  26 ‘Nephew mentioned Rep. Murtha in dealings as contractor’, Washington Post, 12 May 2009.

  27 Ibid.

  28 ‘Bribery plea in firm with Murtha ties’, Washington Post, 8 July 2010.

  29 ‘John Murtha dies’, Washington Post, 9 February 2010.

  30 ‘Murtha defends earmarks to his District’, Washington Post, 30 May 2009.

  31 ‘Critics claim John Murtha is capitalizing on a corrupt system, but he’s not apologizing’, Pittsburgh Post-Gazette, 29 September 2010.

  32 Murtha’s earmarks keep airport aloft’, Washington Post, 19 April 2009.

  33 ‘Rep. Murtha’s earmarks lead to fewer jobs than promised’, Washington Post, 31 December 2009.

  34 Drawn from ‘John Murtha: the Old Soldier who said “Bring the troops home”’, The Nation, 8 February 2010.

  35 http://tpmlivewire.talkingpointsmemo.com/2010/02/lockheed-martin-takes-out-full-page-ad-memorializing-murtha.php.

  36 Silverstein, Ken, Turkmeniscam: How Washington Lobbyists Fought to Flack for a Stalinist Dictatorship (London: Random House, 2008), p. xviii.

  37 George Crile, Charlie Wilson’s War (London: Atlantic Books, 2007), p. 82.

  38 Ibid.

  39 ‘Murtha and the FBI: The Director’s Cut’, The American Spectator, 29 September 2006. The same article claims that Murtha was less than truthful about his involvement in the scam, that he was keen to enter into a long-term deal with the fake sheikh, whom he met subsequently, and that he helped the sheikhs enter the US rather than report them to the FBI or the ethics committee, of which he was a member.

  40 Crile, Charlie Wilson’s War, p. 22.

  41 Ibid.; and ‘Charlie Wilson’, The Economist, 18 February 2010.

  42 Quoted in Crile, Charlie Wilson’s War, p. 20.

  43 Crile, Charlie Wilson’s War, p. 19.

  44 Ibid., p. 10.

  45 Ibid., pp. 165 and 238.

  46 Ibid., p. 11.

  47 ‘Charlie Wilson’, The Economist, 18 February 2010.

  48 Crile, Charlie Wilson’s War, p. 5.

  49 Ibid.

  50 Quoted in ibid., p. 10.

  51 Steve Coll, Ghost Wars: The Secret History of the CIA, Afghanistan, and Bin Laden, from the Soviet Invasion to September 10, 2001 (London: Penguin Books, 2004), p. 91.

  52 Chalmers Johnson, Dismantling the Empire: America’s Last Best Hope (New York: Metropolitan Books, 2010), p. 85.

  53 Crile, Charlie Wilson’s War, Epilogue.

  54 Ibid.

  55 Ibid.

  56 Ibid.

  57 Johnson, Dismantling the Empire, p. 87.

  58 Quoted in Crile, Charlie Wilson’s War, p. 508.

  59 Ibid., p. 521.

  60 Ibid., p. 523.

  61 Johnson, Dismantling the Empire, p. 89.

  62 ‘Charlie Wilson and the political uses of being a “character”’, Crosscut.com, 11 February 2010.

  63 ‘John Murtha dies’, Washington Post, 9 February 2010.

  64 R. Grimmett, Conventional Arms Transfers to Developing Nations 2002–2009, Congressional Research Service, 10 September 2010, CRS-71, http://www.fas.org/sgp/crs/weapons/R41403.pdf.

  65 Dr Sam Perlo-Freeman, Head of the SIPRI Military Expenditure Project, http://www.sipri.org/media/pressreleases/milex.

  66 Interview with senior Capitol Hill aide who has worked on arms trade issues for many years, Washington DC, November 2008.

  67 A. Bacevich, The New American Militarism (London: OUP, 2005), Introduction; and interview with the author, Boston, Mass., 14 November 2008.

  68 President Dwight D. Eisenhower, in a televised farewell address to the nation, 17 January 1961.

  69 Various examples presented in Anthony Sampson, The Arms Bazaar (London: Hodder and Stoughton, 1977), and Johnson, Dismantling the Empire.

  70 Sampson, Arms Bazaar, Chapter 10.

  71 William Hartung, Prophets of War (New York: Nation Books, 2011), Chapter 2, from which this section is drawn. See Hartung for more detail on Lockheed’s early history.

  72 Ibid., p. 40.

  73 Ibid., p. 53.

  74 The story of the C-5A Galaxy is drawn primarily from Hartung, Prophets of War, chapter 5.

  75 Hartung, Prophets of War, p. 72.

  76 Fitzgerald’s consultant successor was a partner at Arthur Young and Company – Lockheed’s chief accounting firm – who had participated in the cover-up of the cost overruns on the C-5A. After a Congressional outcry, in which the appointment was likened to ‘sending a bulldog to guard a hamburger’, it was rescinded. (Ibid., pp. 79–80.)

  77 Quoted in Hartung, Prophets of War, pp. 80–81.

  78 Ibid., p. 87.

  79 Ibid., p. 91.

  80 Ibid., p. 93.

  81 Ibid., p. 97.

  82 Ibid., pp. 102–3.

  83 Ibid., p. 103.

  84 Ibid., p. 107.

  85 Ibid., p. 110.

  86 This idea is drawn from Jarecki, American Way of War, p. 193.

  87 This account is drawn from a lengthy conversation with Spinney, Alexandria, 1 March 2010, and subsequent communication by email. It also draws on Jarecki, American Way of War, Chapter 5.

  88 Interview with Chuck Spinney, Alexandria, 1 March 2010.

  89 Drawn from Jarecki, American Way of War, Chapter 6.

  90 Quoted in Jarecki, American Way of War, p. 206.

  91 Interview with Chuck Spinney, Alexandria, 1 March 2010.

13. In the Name of Uncle Sam

    1 Chalmers Johnson, ‘Death Spiral at the Pentagon’, TomDispatch.com, 2 February 2009.

    2 Naomi Klein, The Shock Doctrine (London: Penguin Books, 2007), p. 157.

    3 Ibid., p. 330.

    4 This example is drawn from Anthony Sampson, The Arms Bazaar (London: Hodder and Stoughton, 1977), Chapter 13.

    5 William Hartung, Prophets of War (New York: Nation Books, 2011), pp. 115–16.

    6 Sampson, Arms Bazaar, p. 224.

    7 Hartung, Prophets of War, p. 117.

    8 Sampson, Arms Bazaar, Chapter 13 and pp. 275–6.

    9 Quoting hearings before the Senate Committee on Banking, Housing, and Urban Affairs on ‘Lockheed Bribery’, 25 August 1975, pp. 29–30, in Hartung, Prophets of War, p. 118.

  10 Hartung, Prophets of War, p. 120; and an anonymous source in Germany.

  11 Sampson, Arms Bazaar, pp. 122–3 and 128–9.

  12 Ibid., pp. 138–9.

  13 Ibid., pp. 134–6.

  14 Memo from marketing executive, DD Stone, quoted in Hartung, Prophets of War, pp. 123–5, from which this account is drawn.

  15 Memos between Dobbins, Cleland and Mitchell, quoted in Hartung, Prophets of War, p. 125.

  16 Drawn from Sampson, Arms Bazaar, p. 192.

  17 Quoted in Hartung, Prophets of War, p. 126, from which this account is drawn.

  18 Ibid.

  19 Church Committee evidence quoted in ibid., p. 127.

  20 Ibid.

  21 Drawn from Sampson, Arms Bazaar, pp. 192–3.

  22 David Leigh and Rob Evans, ‘Adnan Khashoggi’, Guardian, 7 June 2007, http://www.guardian.co.uk/world/2007/jun/08/bae52.

  23 Quoted in Sampson, Arms Bazaar, p. 197.

  24 Drawn from Sampson, Arms Bazaar, Chapter 16.

  25 Ibid.

  26 Quoted in Hartung, Prophets of War, pp. 129–30, from which this account is drawn.

  27 Hartung, Prophets of War, p. 130.

  28 Ibid.

  29 Drawn from Hartung, Prophets of War, p. 131; and Sampson, Arms Bazaar, p. 274.

  30 Hartung, Prophets of War, p. 131.

  31 Claimed in Sampson, Arms Bazaar, p. 279.

  32 Quoted in Hartung, Prophets of War, pp. 131–2, from which this account is drawn.

  33 Ibid.

  34 See for instance, SEC Release 34-15570, 15/2/1979, http://content.lawyerlinks.com/default.htm#http://content.lawyerlinks.com/library/sec/sec_releases/34-15570.htm; and ‘Again, Political Slush Funds’, Time, 24 March 1975, http://www.time.com/time/magazine/article/0,9171,946547,00.html.

  35 Henry H. Rossbacher and Tracy W. Young, ‘The Foreign Corrupt Practices Act within the American Response to Domestic Corruption’, 15 Dickinson Journal of International Law (1997), pp. 509, 518.

  36 House Report, 1977, Unlawful Corporate Payments Act, No. 114, 95th Congress, 1st Sess., http://www.justice.gov/criminal/fraud/fcpa/history/1977/houseprt-95-640.pdf. Retrieved 7 October 2010.

  37 United States Department of Justice website, ‘Lay-Person’s Guide to FCPA’, http://www.justice.gov/criminal/fraud/fcpa/docs/lay-persons-guide.pdf. Retrieved 2 September 2009.

  38 Ben R. Rich and Leo Janos, Skunk Works: A Personal Memoir of My Years at Lockheed (New York: Little, Brown & Co., 1994).

  39 Miriam F. Weismann, ‘The Foreign Corrupt Practices Act: The Failure of the Self-Regulatory Model of Corporate Governance in the Global Business Environment’, Journal of Business Ethics, 2009, pp. 615–61.

  40 Ibid.

  41 FCPA Blog, ‘There are moral problems’, 23 August 2007, http://fcpablog.squarespace.com/blog/2007/8/23/there-are-moral-problems.html. Retrieved 11 September 2010.

  42 Alvaro Cuervo-Cazurra, ‘The Effectiveness of Laws against Bribery Abroad’, Journal of International Business Studies, Vol. 39 (2008), No. 4, pp. 634–51.

  43 Mary Jacoby, ‘Forbes’ Unbalanced Look at FCPA Enforcement’, Main Justice, 10 May 2010, http://www.mainjustice.com/2010/05/10/commentary-forbess-unbalanced-look-at-fcpa-enforcement/; Nathan Vardi, ‘How Federal Crackdown on Bribery Hurts Business and Enriches Insiders’, Forbes, 24 May 2010, http://www.forbes.com/forbes/2010/0524/business-weatherford-kbr-corruption-bribery-racket_print.html. There is a revolving door in Washington, albeit much slower for FCPA prosecutors than many others. An extreme case was Billy Jacobson, a Criminal Fraud Division Prosecutor who, while enforcing the FCPA, had the oil services firm Weatherford International self-report itself to the Department of Justice (DOJ) over bribes paid in Europe. He left the DOJ to join Fulbright and Jaworski LLP as a senior partner, the same law firm hired by Weatherford International. Jacobson worked on Weatherford’s compliance plan for Fulbright before leaving to join the company itself, earning a reported $4m a year. (Jacoby, ‘Forbes’ Unbalanced Look at FCPA Enforcement’.)

  44 See 15 U.S.C. §§78dd-1 (b) and (f) (3) [section 30A of the Securities and Exchange Act of 1934]. The law lists a number of examples for this routine governmental action: (i) obtaining permits, licences, or other official documents to qualify a person to do business in a foreign country; (ii) processing governmental papers, such as visas and work orders; (iii) providing police protection, mail pick-up and delivery, or scheduling inspections associated with contract performance or inspections related to transit of goods across country; (iv) providing phone service, power and water supply, loading and unloading cargo, or protecting perishable products or commodities from deterioration; or (v) actions of a similar nature. Essential actions that should be done as part of normal governmental business. Actions that would require the subordination of an official’s duty is not part of an action ordinarily or commonly performed by a governmental official and therefore illegal, not fitting into the exception. This translates as US companies being able to pay off border guards to stamp their documents as and when they should but it would be illegal to pay them to have them stamped before their turn or to reduce the customs fees.

  45 See 15 U.S.C. §§78c(a)(8), 78dd-1(a).

  46 See § 78dd-3(a), (f)(1).

  47 OECD, United States: Phase 2, Report on Application of the Convention on Combating Bribery of Foreign Public Officials in International Business Actions and the 1997 Recommendation on Combating Bribery in International Business Transactions, 2002, www.oecd.org/dataoecd/52/19/1962084.pdf, retrieved 9 October 2010; and Weismann, ‘The Foreign Corrupt Practices Act’, Journal of Business Ethics.

  48 House Report, 1977, Unlawful Corporate Payments Act, No. 114 (see n. 36 above).

  49 Hearings before the Subcommittee on Telecommunications, Consumer Protection, and Finance of the Committee on Energy and Commerce, House of Representatives, 97th Cong., 1982, p. 256.

  50 Ibid., p. 265.

14. Taking the Mickey, the Toilet Seat and the Hammer …

    1 Drawn from William Hartung, Prophets of War (New York: Nation Books, 2011), pp. 133–5.

    2 Figures quoted in ibid., p. 135.

    3 Drawn from ibid., pp. 136–7.

    4 Quoted in ibid., p. 137, from which this account is drawn.

    5 Ibid.

    6 Hartung, Prophets of War, pp. 138.

    7 Ibid., pp. 138–40.

    8 Ibid., p. 144.

    9 Ibid., p. 145.

  10 Ibid., p. 149.

  11 Ibid., pp. 150–51.

  12 Ibid., pp. 152–3.

  13 Ibid., pp. 153.

  14 Ibid., pp. 153–4.

  15 Quoted in ibid., p. 154.

  16 Hartung, Prophets of War, pp. 154–5.

  17 Ibid., p. 155.

  18 Quoted in Hartung, Prophets of War, pp. 155–7, from which this account is drawn.

  19 Steven R. Salbu, ‘Bribery in the Global Market: A Critical Analysis of the Foreign Corrupt Practices Act’, Washington and Lee Law Review, Winter 1997, pp. 229–87.

  20 Jack G. Kaikati et al., ‘The Price of International Business Morality: Twenty Years under the Foreign Corrupt Practices Act’, Journal of Business Ethics, 26 (April 2000), pp. 213–22.

  21 ‘Corruption: U.S. Firms Handicapped’, Intelligence Newsletter, 21 March 1996, p. 7.

  22 W. Cragg and W. Woof, ‘The U.S. Foreign Corrupt Practices Act: A Study of Its Effectiveness’, Business and Society Review, 107 (1) (2002), pp. 98–144.

  23 Walsh, interview.

  24 Drawn from interview with Chuck Spinney, Alexandria, 1 March 2010, and subsequent communication by email; and Eugene Jarecki, The American Way of War (New York: Free Press, 2008), pp. 199–200.

  25 Interview with Chuck Spinney, Alexandria, 1 March 2010.

  26 The work was published as Defense Facts of Life: The Plans/Reality Mismatch (Boulder, Colo., and London: Westview Press, 1985).

  27 Chalmers Johnson, ‘Death Spiral at the Pentagon’, TomDispatch.com, 2 Febuary 2009, p. 56.

  28 Kevin Phillips, American Dynasty (London: Allen Lane, 2004), pp. 151–2 and 179–84.

  29 Ibid., pp. 182–99.

  30 See Craig Unger, House of Bush, House of Saud (London: Gibson Square, 2007), Appendix C.

  31 Ibid., p. 101.

  32 Larry Gurwin and Adam Zagorin, ‘All That Glitters’, Time, 6 November 1995, http://www.time.com/time/magazine/article/0,9171,983662-7,00.html.

  33 All these statistics sourced from Carlyle Group website, ‘Firm Profile’, http://www.carlyle.com/company/item1676.html.

  34 Melanie Warner, ‘What Do George Bush, Arthur Levitt, Jim Baker, Dick Darman, and John Major Have in Common? (They All Work for the Carlyle Group.) What exactly Does It Do? To Find Out, We Peeked down the Rabbit Hole’, Fortune, 18 March 2002, http://money.cnn.com/magazines/fortune/fortune_archive/2002/03/18/319881/index.htm.

  35 Tim Shorrock, ‘The Carlyle Group – Crony Capitalism Goes Global’, The Nation, 26 March 2002, http://www.rense.com/general21/gf.htm.

  36 Oliver Burkeman and Julian Borger, ‘The ex-presidents’ club’, Guardian, 31 October 2001, http://www.guardian.co.uk/world/2001/oct/31/september11.usa4.

  37 Steve Lohr, ‘Gerstner to be Chairman of Carlyle Group’, The New York Times, 22 November 2002, http://www.nytimes.com/2002/11/22/business/gerstner-to-be-chairman-of-carlyle-group.html.

  38 Carlyle Group website, ‘Arthur Levitt, Senior Advisor’, http://www.carlyle.com/team/item5771.html.

  39 Dan Briody, The Iron Triangle: Inside the Secret World of the Carlyle Group (New York: John Wiley & Sons, 2003), p. xiii; Jason Lewis, ‘REVEALED: How protection teams claim thousands of pounds of taxpayers’ money to guard former Prime Ministers’, Daily Mail, 4 July 2010, http://www.dailymail.co.uk/news/article-1291838/White-water-rafting-Sir-John-Major.html.

  40 ‘Three former leaders leave posts at Carlyle Group’, The New York Times, 6 August 2004, http://www.nytimes.com/2004/08/06/business/company-news-three-former-leaders-leave-posts-at-carlyle-group.html?ref=fidel_v_ramos.

  41 Tim Shorrock, ‘Carlyle’s tentacles embrace Asia’, Asia Times, 20 March 2002, http://www.atimes.com/china/DC20Ad02.html.

  42 Carlyle Group website, ‘Thomas F. (Mack) McLarty, Senior Advisor’, http://www.carlyle.com/team/item5871.html.

  43 Ibid., ‘Randal K. Quarles, Managing Director’, http://www.carlyle.com/team/item9821.html.

  44 BAE Systems website, US Board of Directors, http://www.baesystems.com/WorldwideLocations/UnitedStates/AboutBAESystemsUnitedStates/USBoardofDirectors/index.htm.

  45 Laura Peterson, ‘United Defence Industries L.P.’, Center for Public Integrity, http://projects.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=60.

  46 Briody, Iron Triangle, extract available online at http://www.fahrenheit911.com/library/book/carlyle/index.php.

  47 Eric Leser, ‘Carlyle empire’, Le Monde, 29 April 2004, http://www.culturechange.org/CarlyleEmpire.html.

  48 Shorrock, ‘The Carlyle Group – Crony Capitalism Goes Global’ (see n. 35 above).

  49 National Audit Office, ‘The Privatisation of QinetiQ’, 23 November 2007.

  50 Kenneth N. Gilpin, ‘Military Contractor Sold to Buyout Firm’, The New York Times, 27 August 1997, http://www.nytimes.com/1997/08/27/business/military-contractor-sold-to-buyout-firm.html.

  51 ‘UNITED DEFENSE IN DEAL FOR BOFORS WEAPON SYSTEMS’, The New York Times, 16 June 2000, http://www.nytimes.com/2000/06/16/business/company-news-united-defense-in-deal-for-bofors-weapon-systems.html.

  52 Global Security website, ‘United Defense Industries’, http://www.globalsecurity.org/military/industry/udi.htm.

  53 Andrea Rothman and Edmond Lococo, ‘BAE buys United Defense to tap U.S. military sales (Update10)’, Bloomberg, 7 March 2005, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBEULP6oGE.Y&refer=uk.

  54 Bob Cox, ‘Pennsylvania company buys Vought for $1.4 billion’, Star Telegram, 23 March 2010.

  55 Triumph Group Inc., ‘Military Programs: Triumph Aerostructures – Vought Aircraft Division’, http://www.triumphgroup.com/companies/triumph-aerostructures-vought-aircraft-division/about-us/military-programs.

  56 Shorrock, ‘The Carlyle Group – Crony Capitalism Goes Global’ (see n. 35 above).

  57 Tim Shorrock, ‘US–Taiwan: the guiding hand of Frank Carlucci’, Asia Times, 19 March 2002, http://www.atimes.com/china/DC19Ad02.html.

  58 David Ottaway, The King’s Messenger: Prince Bandar Bin Sultan and America’s Tangled Relationship with Saudi Arabia (New York: Walker & Company, 2008), p. 164.

  59 Robert G. Kaiser, ‘Enormous wealth spilled into American coffers’, Washington Post, 11 February 2002, http://www.library.cornell.edu/colldev/mideast/enormss.htm.

  60 Laura Peterson, ‘Privatizing Combat, the New World Order’, Center for Public Integrity, 28 October 2002, http://projects.publicintegrity.org/bow/report.aspx?aid=148.

  61 Global Security, ‘Office of the Program Manager Saudi Arabian National Guard Modernization Program’, http://www.globalsecurity.org/military/agency/dod/opm-sang.htm.

  62 Leser, ‘Carlyle empire’ (see n. 47 above).

  63 Center for Public Integrity, ‘Windfalls of War: Campaign Contributions of Post-War Contractors’, http://projects.publicintegrity.org/wow/resources.aspx?act=contrib.

  64 Spelling varies; for example, Said Aburish spells his name Walid bin Tallal and Briody refers to him as Prince Alwaleed bin Talal.

  65 Said Aburish, The Rise, Corruption and Coming Fall of the House of Saud (London: Bloomsbury, 2005), p. 82; and Briody, Iron Triangle, p. 51.

  66 Time/CNN, ‘2001 Global Influentials: 18. Prince Al-Waleed’.

  67 Shorrock, ‘The Carlyle Group – Crony Capitalism Goes Global’ (see n. 35 above).

  68 Briody, Iron Triangle, pp. 51–9.

  69 Ibid.

  70 Kaiser, ‘Enormous wealth spilled into American coffers’ (see n. 59 above).

  71 Ibid.

  72 Briody, Iron Triangle, pp. 145–6; and Burkeman and Borger, ‘The ex-presidents’ club’ (see n. 36 above).

  73 Steve Coll, The Bin Ladens: Oil, Money, Terrorism and the Secret Saudi World (London: Penguin Books, 2008), pp. 424–6.

  74 Ibid., p. 520.

  75 Quoted in Hartung, Prophets of War, pp. 166–7, from which this section is drawn.

  76 Hartung, Prophets of War, pp. 168 and 181–6.

  77 Ibid., p. 168, from which this section is drawn.

  78 Ibid., p. 169.

  79 Ibid., p. 170.

  80 Drawn from ibid.

  81 Quoted in ibid.

  82 After a Congressman branded the scheme ‘payoffs for layoffs’ Augustine agreed to donate the taxpayer portion of his windfall to charity.

  83 Quoted in Hartung, Prophets of War, p. 173, from which this section is drawn.

  84 Hartung, Prophets of War, p. 188.

  85 Ibid., p. 191.

  86 William D. Hartung, How Much are You Making on the War, Daddy? (New York: Nation Books, 2003), p. 40.

  87 Hartung, Prophets of War, p. 193.

  88 Figures quoted in ibid., p. 197.

  89 Farmus was acquitted on charges of corruption but the court deemed he had revealed a confidential document to bidding companies, though not in return for money (PolenForum, 29 January 2007). Szeremietiew was subsequently dismissed from the government. After a series of trials he was eventually acquitted on all charges in November 2010 (wyborcza.pl, 9 November 2010).

  90 Barre R. Seguin, ‘Why did Poland Choose the F-16’, George C. Marshall European Center for Security Studies, No.11, June 2007, http://www.marshallcenter.org/mcpublicweb/MCDocs/files/College/F_Publications/occPapers/occ-paper_11-en.pdf; Clare McManus-Czubinska, William L. Miller, Radoslaw Markowski and Jacek Wasilewski, 2004, ‘Why is Corruption in Poland “a serious cause for concern”?’, Crime, Law and Social Change, 41(2), pp. 107–32; Newsline, Radio Free Europe, 26 August 2002, http://www.rferl.org/content/article/1142745.html; Gregory Filipowicz, ‘An Existentialist Shift: The F-16 Reaching into Iraq’, Dedefensa.org, 11 June 2005; and Ahmedullah, ‘Arms Sales: The U.S.–French Tug of War’, Bulletin of the Atomic Scientists, Vol. 59, No. 5, September/October 2003.

  91 ‘Emergency landing of Polish F-16s’, Polish News, 2/10/2007.

  92 Calculated from Johnson, ‘Death Spiral at the Pentagon’, and Nick Turse, The Complex (London: Faber and Faber, 2008).

  93 C. Johnson, The Sorrows of Empire (London: Verso, 2006), pp. 62–3.

  94 Quoted in Hartung, Prophets of War, pp. 192–3.

  95 Hartung, Prophets of War, p. 193.

  96 The Economist, 14 July 2011, http://www.economist.com/node/18958487?story_id=18958487&fsrc=rss.

  97 Johnson, Sorrows of Empire, p. 63.

  98 Conversation with Hartung, New York, December 2008. This had happened on a smaller scale after the Clinton administration, with the Defense Secretary, Bill Perry, and one of his Deputies, John Deutch, who also served as CIA Director, taking seats on a host of defence company boards.

  99 Quoted from P. Wolfowitz, Defense Planning Guidance for the 1994–1999 Fiscal Years among others.

100 Jarecki, American Way of War, p. 12.

101 Ibid.

102 Project for the New American Century, Rebuilding America’s Defenses: Strategy, Forces and Resources for a New Century, Washington DC, September 2000, http://www.newamericancentury.org/RebuildingAmericasDefenses.pdf.

103 As seen in the 2002 policy document entitled ‘The National Security Strategy of the USA’ and explicated in Bush’s ‘Axis of Evil’ State of the Union speech, 2003.

104 Hartung, Prophets of War, p. 209.

105 Jarecki, American Way of War, pp. 25–8.

106 Project for the New American Century, Rebuilding America’s Defenses, p. 51.

107 Jarecki, American Way of War.

108 Interview with Andrew Bacevich, Boston, Mass., 14 November 2008.

109 The New York Times, 4 February 2007.

110 Quoted in Naomi Klein, The Shock Doctrine (London: Penguin Books, 2004), p. 300, from whom some ideas in this section are drawn.

111 Klein, Shock Doctrine, pp. 300–301.

112 These figures and those in the following paragraphs are calculated from a variety of sources, including Naomi Klein, Eugene Jarecki, Travis Sharp and conversations the author has had with a range of sources in government and the defence industry.

113 Travis Sharp, ‘Fiscal Year 2010 Pentagon Defense Spending Request: February “Topline”’, Center for Arms Control and Non-proliferation, 26 February 2009.

114 Turse, The Complex.

115 Ibid.

116 William D. Hartung and Michelle Ciarrocca, The Ties That Bind: Arms Industry Influence in the Bush Administration and Beyond, World Policy Institute, October 2004.

117 Klein, Shock Doctrine.

118 KBR was a subsidiary of Halliburton until April 2007 when a series of adverse judicial findings caused Halliburton to sell its stake in KBR.

119 Pratap Chatterjee, Halliburton’s Army (New York: Nation Books, 2009).

120 Klein, Shock Doctrine.

121 David Bromwich, ‘The Co-President at Work’, New York Review of Books, 20 November 2008.

122 L. Dubose and J. Bernstein, Vice: Dick Cheney and the Hijacking of the American Presidency (New York: Random House, 2006); and Turse, The Complex.

123 This is based on a conversation with Chuck Lewis, founder of the Center for Public Integrity.

124 Klein, Shock Doctrine.

125 Quoted in ibid.

126 Klein, Shock Doctrine, and conversations with sources.

127 Nixon referring to Rumsfeld, 1971.

128 Klein, Shock Doctrine.

129 See, for instance, William Hartung, ‘Reagan Redux: The Enduring Myth of Star Wars’, World Policy Journal, Vol. 15 (1998).

130 Figures from Hartung, Prophets of War.

131 Quoted in Jarecki, American Way of War.

132 Ibid.

133 Ibid.

134 Rachel Monahan and Elena Herrero Beaumont, ‘Big Time Security’, Forbes, 8 March 2006, http://www.forbes.com/2006/08/02/homeland-security-contracts-cx_rm_0803homeland.html.

135 Interview with Chuck Spinney, Alexandria, 1 March 2010.

136 Drawn from Jarecki, American Way of War.

137 Quoted in ibid.

138 For more on this notion see the writings of Bacevich, Engelhardt and Johnson, Sorrows of Empire.

139 See Garry Wills, Bomb Power: The Modern Presidency and the National Security State (New York: Penguin Books, 2010), for an excellent description of how executive power has been increased since the Second World War, to reach its zenith in the current era.

140 ‘U.S. stocks rise, erasing losses on London bombings; gap rises’, Bloomberg, 7 July 2005.

141 Klein, Shock Doctrine, p. 302; and Monahan and Herrero Beaumont, ‘Big Time Security’ (see n. 134 above).

142 ‘TIMELINE: NBC, Universal through the 20th century and beyond’, Reuters, 3 December 2009.

143 Klein, Shock Doctrine.

144 Hartung, How Much are You Making on the War, Daddy? Perle stated in his resignation letter that he ‘did not want to distract from the urgent challenge … as I cannot quell criticism of me based on errors of fact’ (Newsmax.com, 24 March 2003).

145 Hartung, How Much are You Making on the War, Daddy?

146 Quoted in Klein, Shock Doctrine.

15. Illegal Bribery

    1 Project on Government Oversight, ‘Fill ’Er Up: Back-Door Deal for Boeing Will Leave the Taxpayer on Empty’, 7 May 2002, http://www.pogo.org/pogo-files/reports/national-security/back-door-deal-for-boeing/ns-btld-back-door-deal-for-boeing.html.

    2 Leslie Wayne, ‘Documents show extent of lobbying by Boeing’, The New York Times, 3 September 2003, http://www.nytimes.com/2003/09/03/business/documents-show-extent-of-lobbying-by-boeing.html; and William D. Hartung, How Much are You Making on the War, Daddy? (New York: Nation Books, 2003), p. 126.

    3 Known as the KC-135 ‘R’.

    4 General Accounting Office, Briefing for Senate Armed Service Committee, ‘Preliminary Information on Air Force Tanker Leasing Issues’, May 2002, http://www.pogoarchives.org/m/cp/cp-boeing767c.pdf.

    5 FY 2002 Air Force Unfunded Priority List, submitted by General John P. Jumper, Air Force Chief of Staff, 22 October 2001, http://www.pogoarchives.org/m/cp/cp-boeing767e.pdf.

    6 Memo to Senator John McCain from Mitchell E. Daniels, Jr, Director of Office of Management and Budget, 3 May 2002, http://www.pogoarchives.org/m/cp/cp-boeing767b.pdf.

    7 General Accounting Office, ‘Preliminary Information on Air Force Tanker Leasing Issues’ (see n. 4 above).

    8 Memo to Senator John McCain from Mitchell E. Daniels, Jr, Director of Office of Management and Budget, 18 December 2001, http://www.pogoarchives.org/m/cp/cp-boeing767a.pdf.

    9 Ibid.

  10 Ibid.

  11 Memo to Senator Kent Conrad from Mitchell E. Daniels, Jr, Director of Office of Management and Budget, 2 November 2001, http://www.pogoarchives.org/m/cp/cp-boeing767d.pdf.

  12 Hartung, How Much are You Making on the War, Daddy?, p. 126.

  13 Project on Government Oversight, ‘Fill ’Er Up’ (see n. 1 above).

  14 Letter and report to Senator John McCain from Department of Defense Inspector General Joseph E. Schmitz, 3 May 2002, http://www.pogoarchives.org/m/cp/cp-boeing767f.pdf.

  15 R. Jeffrey Smith and Renae Merle, ‘Rules circumvented on huge Boeing defense contract’, Washington Post, 27 October 2003, http://www.washingtonpost.com/ac2/wp-dyn/A21584-2003Oct26?language=printe.

  16 Wayne, ‘Documents show extent of lobbying by Boeing’ (see n. 2 above); for McCain’s own account of receiving the documents, see his press release at http://mccain.senate.gov/public/index.cfm?FuseAction=PressOffice.Articles&ContentRecord_id=dfd71eae-28c5-41ff-99b4-a362135d276f&Region_id=&Issue_id=1bd7f3a7-a52b-4ad0-a338-646c6a780d65.

  17 Smith and Merle, ‘Rules circumvented on huge Boeing defense contract’ (see n. 15 above).

  18 Center for Security Policy, Precision-Guided Ideas: 2002 Annual Report, http://web.archive.org/web/20030630032717/www.centerforsecuritypolicy.org/Center2002AR.pdf.

  19 Smith and Merle, ‘Rules circumvented on huge Boeing defense contract’ (see n. 15 above).

  20 Hartung, How Much are You Making on the War, Daddy?, p. 129.

  21 Smith and Merle, ‘Rules circumvented on huge Boeing defense contract’ (see n. 15 above).

  22 Ibid.

  23 Caroline Daniel, James Harding, Joshua Chaffin and Marianne Brun-Rovet, ‘A cosy relationship: Boeing’s Pentagon deal bears testament to its skilful lobbying efforts’, Financial Times, 8 December 2003.

  24 Dan Cook, ‘Boeing Given Nod on Tanker Lease’, Military Aerospace Technology, Vol. 1 (2), 1 May 2002, http://web.archive.org/web/20071114184441; http://www.military-aerospace-technology.com/article.cfm?DocID=335.

  25 John Tirpak, ‘Tanker Twilight Zone’, Air Force Magazine, February 2004, http://www.airforce-magazine.com/MagazineArchive/Pages/2004/February%202004/0204tanker.aspx.

  26 Kimberley Palmer, ‘Former Air Force acquisition official released from jail’, Government Executive.com, 3 October 2005, http://www.govexec.com/dailyfed/1005/100305k2.htm.

  27 Rebecca Leung, ‘Cashing in for profit?’, 60 Minutes, CBS, 5 January 2005, http://www.cbsnews.com/stories/2005/01/04/60II/main664652.shtml; and Wayne, ‘Documents show extent of lobbying by Boeing’ (see n. 2 above).

  28 Wayne, ‘Documents show extent of lobbying by Boeing’ (see n. 2 above).

  29 Smith and Merle, ‘Rules circumvented on huge Boeing defense contract’ (see n. 15 above).

  30 Ibid.

  31 Wayne, ‘Documents show extent of lobbying by Boeing’ (see n. 2 above).

  32 Ibid.

  33 Ibid.

  34 Smith and Merle, ‘Rules circumvented on huge Boeing defense contract’ (see n. 15 above).

  35 Ibid.

  36 Ibid.

  37 Ibid.

  38 Ibid.

  39 Ibid.

  40 Ibid.

  41 Renae Merle, ‘Lockheed adds Director fresh from the Pentagon’, Washington Post, 27 June 2003.

  42 National Corruption Index, ‘Edward Aldridge’, 19 May 2008, http://www.nationalcorruptionindex.org/pages/profile.php?category=cat&selectcats=52&catidorcorp=Individual&checkview=1&profile_id=532.

  43 Leung, ‘Cashing in for profit?’ (see n. 27 above).

  44 Ibid.

  45 Palmer, ‘Former Air Force acquisition official released from jail’ (see n. 26 above).

  46 Leung, ‘Cashing in for profit?’ (see n. 27 above).

  47 Ibid.

  48 Renae Merle, ‘Pentagon’s Druyun thrust herself into role of power’, Washington Post, 21 November 2004.

  49 Alan Bjerga, ‘Ex-Boeing CFO pleads guilty in tanker deal scandal’, Seattle Times, 16 November 2004, http://seattletimes.nwsource.com/html/businesstechnology/2002091816_webboeing16.html.

  50 ‘An anxious time for Boeing as a fired worker starts to talk’, The New York Times, 16 June 2004.

  51 George Cahlink, ‘Ex-Pentagon procurement executive gets jail time’, Government Executive.com, 1 October 2004, http://www.govexec.com/dailyfed/1004/100104g1.htm.

  52 ‘Ex-official goes to prison’, The New York Times, 5 January 2005, http://query.nytimes.com/gst/fullpage.html?res=9B04EEDB1339F936A35752C0A9639C8B63.

  53 Cahlink, ‘Ex-Pentagon procurement executive gets jail time’ (see n. 51 above).

  54 Palmer, ‘Former Air Force acquisition official released from jail’ (see n. 26 above).

  55 Cahlink, ‘Ex-Pentagon procurement executive gets jail time’ (see n. 51 above).

  56 Palmer, ‘Former Air Force acquisition official released from jail’ (see n. 26 above).

  57 Ibid.

  58 Leung, ‘Cashing in for profit?’ (see n. 27 above).

  59 R. Jeffrey Smith, ‘Roche cited for 2 ethics violations’, Washington Post, 10 February 2005, http://www.washingtonpost.com/ac2/wp-dyn/A12344-2005Feb9?language=printer.

  60 ‘Profile: James Roche’, Right Web, 1 August 2009, http://www.rightweb.irc-online.org/profile/Roche_James#_edn10.

  61 Office of Senator John McCain, ‘McCain deplores Boeing tanker scheme’, press release, 23 May 2003, http://www.globalsecurity.org/military/library/news/2003/05/mil-030523-dod0.htm.

  62 ‘Profile: James Roche’, Right Web (see n. 60 above).

  63 Orbital, ‘Orbital names Dr. James G. Roche to Board Of Directors’, press release, 25 May 2005, http://www.orbital.com/NewsInfo/release.asp?prid=508.

  64 ‘Dr. James G. Roche joins CompuDyne’s Board of Directors’, Businesswire, 9 September 2008, http://www.allbusiness.com/government/government-bodies-offices-government/11553368-1.html.

  65 George Cahlink, ‘Two top Air Force officials to resign’, GovernmentExecutive.com, 17 November 2004, http://www.govexec.com/dailyfed/1104/111704g2.htm.

  66 Peter Pae, ‘US: Boeing to pay fine of $615 million’, Los Angeles Times, 16 May 2006, http://www.corpwatch.org/article.php?id=13582.

  67 Mike Allen, ‘Details on Boeing deal sought: Senators raise questions about White House involvement’, Washington Post, 8 June 2005, http://www.washingtonpost.com/wp-dyn/content/article/2005/06/07/AR2005060701751.html.

  68 Project on Government Oversight, 25 May 2006, ‘Defense Inspector General originally hid Boeing role in scandal report: White House and Congress’ Roles in tanker lease deal still unclear’, http://www.pogo.org/pogo-files/alerts/government-secrecy/gs-foia-20060525.htm.

  69 ‘Holes in the tanker story’, Washington Post, 20 June 2005, http://www.washingtonpost.com/wp-dyn/content/article/2005/06/19/AR2005061900705.html.

  70 Allen, ‘Details on Boeing deal sought’ (see n. 67 above).

  71 ‘Holes in the tanker story’, Washington Post (see n. 69 above)

  72 Project on Government Oversight, ‘Defense Inspector General originally hid Boeing role in scandal report’ (see n. 68 above).

  73 Hearing of the Senate Armed Services Committee, 7 June 2005.

  74 Jeremy Scahill, Blackwater: The Rise of the World’s Most Powerful Mercenary Army (London: Serpent’s Tail, 2008), p. 387.

  75 Cam Simpson, ‘Commander: Contractors violating U.S. trafficking laws’, Chicago Tribune, 23 April 2006, http://www.corpwatch.org/article.php?id=13513; Scahill, Blackwater, p. 384.

  76 Scahill, Blackwater, p. 388.

  77 ‘Boeing protests U.S. Air Force tanker contract award’, Boeing press release, 11 March 2008, http://boeing.com/news/releases/2008/q1/080311b_nr.html.

  78 Government Accountability Office, ‘Statement regarding the bid protest decision resolving the aerial refueling tanker protest by the Boeing Company’, 18 June 2008, http://web.archive.org/web/20080625201918; http://www.king5.com/sharedcontent/northwest/pdf/gao_boeing.pdf.

  79 Dana Hedgpeth, ‘Pentagon postpones tanker competition’, Washington Post, 11 September 2008, http://www.washingtonpost.com/wp-dyn/content/article/2008/09/10/AR2008091000986.html?hpid=sec-business.

  80 Jon Ostrower, ‘Northrop Grumman declines to bid on latest KC-X RFP’, Flight International, 9 March 2010, http://www.flightglobal.com/articles/2010/03/09/339205/northrop-grumman-declines-to-bid-on-latest-kc-x-rfp.html.

  81 A surprise third bidder, US Aerospace, coupled with the Ukrainian manufacturer Antonov, also entered the fray. However, its bid was excluded after it submitted its proposal five minutes after the deadline. US Aerospace protested at this exclusion but the GAO upheld it in October 2010.

  82 Andrea Shalal-Esa, ‘EADS backer charges politics in tanker’, Reuters, 21 September 2010, http://www.reuters.com/article/idUSTRE68J54R20100921.

  83 A fighter ace is defined as any pilot who has made five kills.

  84 Marcus Stern, Jerry Kammer, Dean Calbreath and George Condon, The Wrong Stuff (New York: Public Affairs, 2007), pp. 25 and 289.

  85 Jerry Ethell and Alfred Price, One Day in a Long War (New York: Random House, 1989), p. 110; and Stern et al., Wrong Stuff, p. 33.

  86 Stern et al., Wrong Stuff, p. 50.

  87 Ibid.

  88 Ibid., p. 58.

  89 Ibid., p. 6.

  90 Ibid., p. 241.

  91 Kitty Kelley, ‘Ace in the Hole: Duke Cunningham’s Wife Tells All’, New Republic Online, 17 August 2006.

  92 Bates was ultimately rebuked by the House Ethics Committee and warned as to his future conduct. (‘Ethics panel gives Rep. Bates light penalty in sexual harassment case: Congress: woman who brought charges against San Diego lawmaker is “disgusted”’, Los Angeles Times, 19 October 1989.)

  93 Stern et al., Wrong Stuff, p. 65.

  94 Ibid., p. 68.

  95 Ibid., p. 74.

  96 Dana Wilkie, ‘Cunningham version of weekend confrontation disputed’, Copley News Service, 8 September 1998.

  97 ‘Cunningham exchanges angry words with constituent’, Associated Press, 6 August 1998.

  98 Stern et al., Wrong Stuff, p. 80.

  99 Ibid., p. 215.

100 Ibid.

101 Ibid.

102 Ibid., pp. 213–23.

103 Marcus Stern and Joe Cantlupe, ‘Ties between contractor, Congressman questioned’, Copley News Service, 17 June 2005.

104 Stern et al., Wrong Stuff, pp. 253–61; Kelley, ‘Ace in the Hole’, New Republic Online, 17 August 2006.

105 Associated Press, ‘Cunningham moving to Arizona prison’, Washington Post, 5 January 2007, http://www.washingtonpost.com/wp-dyn/content/article/2007/01/05/AR2007010501858.html.

106 Seth Hettena, ‘Mitch Wade’s sentence’, 15 December 2008.

107 Stern et al., Wrong Stuff, p. 165.

108 Ibid., p. 44.

109 Ibid., p. 47.

110 Judy Bachrach, ‘Washington Babylon’, Vanity Fair, August 2006, http://www.vanityfair.com/politics/features/2006/08/washington200608?currentPage=all.

111 Stern et al., pp. 101–27.

112 Ibid., pp. 129–42

113 Ibid., p. 166.

114 Ibid., p. 170.

115 Ibid., p. 177.

116 Ibid., p. 169.

117 Ibid., p. 181–95.

118 Ibid., p. 3.

119 Associated Press, ‘Defense contractor pleads guilty to bribery’, MSNBC, 24 February 2006, http://www.msnbc.msn.com/id/11535676/.

120 Teri Figueroa, ‘Congressman’s briber finally makes bail’, North County Times, 6 January 2009, http://www.nctimes.com/news/local/sdcounty/article_8e6aefcc-0508-58d8-a455-2ed227c78143.html; Rachel Slajda, ‘Duke Cunningham briber rakes in $10k at poker tourney’, Talking Points Memo Muckraker, 28 July 2010, http://tpmmuckraker.talkingpointsmemo.com/brent_wilkes/.

121 David Johnston, ‘Ex-CIA official admits corruption’, The New York Times, 29 September 2008, http://www.nytimes.com/2008/09/30/washington/30inquire.html?_r=2&adxnnl=1&ref=randy_cunningham&adxnnlx=1287518428-T1GiMk3n9QiVUOhq/QwkmQ.

122 Bachrach, ‘Washington Babylon’ (see n. 110 above).

123 Zachary Roth, ‘Foggo sentenced to over three years in prison’, Talking Points Memo Muckraker, 26 February 2009, http://tpmmuckraker.talkingpointsmemo.com/2009/02/foggo_sentenced_to_over_three_years_in_prison.php.

124 Zachary Roth, ‘Cunningham crony charged in $92 million mortgage fraud’, Talking Points Memo Muckraker, 4 June 2009, http://tpmmuckraker.talkingpointsmemo.com/2009/06/cunningham_crony_charged_in_92_million_mortgage_fr.php.

125 ‘Cash pours in for Murtha’s top aide in Pa. race for seat’, Washington Post, 26 April 2010; and ‘Anti-government? Not in Rep Murtha’s old district’, Washington Post, 20 May 2010.

126 ‘Cash pours in for Murtha’s top aide in Pa. race for seat’, Washington Post, 26 April 2010. There is no suggestion that these contributions were illegal in terms of US law or that Representative Critz has engaged in any illegality.

127 ‘Murtha’s earmarking not unusual among subcommittee members’, Washington Post, 9 November 2009.

128 ‘Value of congressional earmarks increased in fiscal 2010’, Washington Post, 18 February 2010.

129 Taxpayers for Common Sense, earmark database for HR 3, final version as signed by the President on 10 August 2005; and Stern et al., Wrong Stuff, p. 85.

130 Office of Management and Budget, ‘FY 2009 Earmarks by Appropriations Subcommittee’, http://earmarks.omb.gov/earmarks-public/2009-appropriations-by-spendcom/summary.html.

131 Stern et al., Wrong Stuff, p. 87.

132 Govtrack.us, S. 3335: Earmark Transparency Act, 111th Congress, 2009–10, http://www.govtrack.us/congress/bill.xpd?bill=s111-3335.

16. Beyond Utopia, Hope?

    1 On Pentagon spending, see Rebecca Williams, ‘House Appropriations Releases FY12 Spending Caps’, The Will and the Wallet (website), Washington DC, Stimson Center, 12 May 2011, available at http://thewillandthewallet.squarespace.com/blog/2011/5/12/house-appropriations-releases-fy12-spending-caps.html; on war costs, see Amy Belasco, The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations since 9/11, Congressional Research Service, 29 March 2011, Table 2, p. 8.

    2 Frida Berrigan, ‘How Shovel-Ready is the Pentagon?’ TomDispatch.com 12 March 2009.

    3 ‘FY 2012 Base Defense Budget Represents a Turning Point’, Center for Strategic and Budgetary Assessments, 14 February 2011, http://www.csbaonline.org/publications/2011/02/fy-2012-base-defense-budget-represents-a-turning-point/.

    4 Berrigan, ‘How Shovel-Ready is the Pentagon?’

    5 Chalmers Johnson, ‘Death Spiral at the Pentagon’, TomDispatch.com, 2 February 2009.

    6 William Hartung, Prophets of War (New York: Nation Books, 2011), from which this section is derived.

    7 Ibid., p. 3.

    8 Berrigan, ‘How Shovel-Ready is the Pentagon?’

    9 Hartung, Prophets of War, p. 4.

  10 Quoted in Sydney J. Freedberg, Jr, ‘On the Sea and in the Air, Military Bills Come Due’, GovernmentExecutive.com, 20 March 2008.

  11 Hartung, Prophets of War, p. 1.

  12 Ibid., p. 5.

  13 Ibid., pp. 4–5.

  14 Drawn from ibid., pp. 5–6.

  15 Interview with Chuck Spinney.

  16 Hartung, Prophets of War, p. 6.

  17 Harry Stonechipher interviewed in the Wall Street Journal, quoted in ibid., p. 7.

  18 Information gleaned from Reuters and AboveTopSecret.com, 2 June 2009.

  19 Defence Talk, 22 June 2009.

  20 Hartung, Prophets of War, p. 10.

  21 Ibid., p. 11.

  22 Ibid., p. 16.

  23 Ibid., p. 17.

  24 T. Capaccio, ‘Lockheed F-35 program faces $1 billion cut in U.S. Senate spending measure’, Bloomberg News, 16 December 2010.

  25 Johnson, ‘Death Spiral at the Pentagon’.

  26 Quoted in Hartung, Prophets of War, pp. 18–19.

  27 Bloomberg, 21 April 2011, http://www.bloomberg.com/news/2011-04-21/lockheed-martin-f-35-operating-costs-may-reach-1-trillion.html.

  28 Ibid.

  29 Interview with Pierre Sprey, Washington DC, May 2011.

  30 The Congressional Research Service, quoted in Hartung, Prophets of War, p. 230, from which this section is drawn.

  31 Federation of American Scientists, Arms Sales Monitoring Project.

  32 Derived from ‘US Weapons at War 2008’, New America Foundation, December 2008, http://www.newamerica.net/publications/policy/u_s_weapons_war_2008_0.

  33 Hartung, Prophets of War, p. 179.

  34 Ibid., pp. 179–80.

  35 Drawn from Johnson, ‘Death Spiral at the Pentagon’, p. 279.

  36 Ibid., pp. 279–80.

  37 Ibid.

  38 Hartung, Prophets of War, pp. 230–31.

  39 Ibid.

  40 Ibid.

  41 Ibid., p. 232.

  42 Ibid., pp. 235–6.

  43 Ibid., p. 239.

  44 Ibid., p. 240.

  45 Ibid., pp. 242–3.

  46 ‘LCS Contracts Awarded to Lockheed Martin, Austal USA’, DefenseNews, 29 December 2010, http://www.defensenews.com/story.php?i=5339223.

  47 ‘Lockheed, Austal’s littoral ships to cost at least $37 billion’, Bloomberg, 19 April 2011, http://www.bloomberg.com/news/2011-04-19/lockheed-austal-s-littoral-ships-to-cost-at-least-37-billion.html.

  48 Hartung, Prophets of War, pp. 243–6.

  49 Ibid., pp. 248–9.

  50 All figures are from ibid., pp. 29–30. The top three defence contractors combined received $75bn and the top ten $152bn in 2008.

  51 Kelly Patricia O’Meara, ‘Rumsfeld inherits financial mess’, Insight on the News, 3 September 2001, http://findarticles.com/p/articles/mi_m1571/is_33_17/ai_78127727/.

  52 ‘Building affordability’, DefenseNews, 26 July 2010; ‘Pentagon says it’s moving toward being “audit-ready”’, CNN, 25 February 2011.

  53 ‘Senators call for an audit of the Pentagon’, RT, 16 May 2011.

  54 ‘GAO blasts weapons budget’, Washington Post, 1 April 2008.

  55 ‘U.S.–U.K.–Australian trade treaties finally pass committee’, DefenseNews, 21 September 2010.

  56 See ‘Missing Iraq reconstruction billions’, Independent, 16 February 2009.

  57 Ibid.

  58 Guy Lawson, ‘Arms and the Dudes’, Rolling Stone, 31 March 2011.

  59 TPM, ‘AEY Inc’, July 2008.

  60 A. Tilghman, ‘Army awarded AEY contract after “recommendation” from firm’s financial backer’, Talking Points Memo (TPM) Muckraker, 24 June 2008, http://tpmmuckraker.talkingpointsmemo.com/2008/06/aey_contract_after_recomendation_from_firms_financial_backer.php.

  61 ‘Supplier under scrutiny on arms for Afghans’, The New York Times, 27 March 2008.

  62 Ardian Klosi, The Gerdec Disaster: Its Causes, Culprits and Victims (Tirana: K&B, 2010).

  63 Ibid.

  64 Ibid.

  65 Ibid.

  66 Ibid.

  67 Ibid.

  68 Ibid.

  69 Ibid.

  70 Ibid.

  71 ‘Supplier under scrutiny on arms for Afghans’, The New York Times, 27 March 2008.

  72 Klosi, Gerdec Disaster.

  73 Interview with Hugh Griffiths, Stockholm, November 2010.

  74 Lawson, ‘Arms and the Dudes’, Rolling Stone, 31 March 2011.

  75 Interview with Hugh Griffiths, Stockholm, November 2010; and ‘Supplier under scrutiny on arms for Afghans’, The New York Times, 27 March 2008.

  76 ‘Supplier under scrutiny on arms for Afghans’, The New York Times, 27 March 2008.

  77 Klosi, Gerdec Disaster.

  78 Ibid.; and ‘American envoy is linked to arms deal cover-up’, The New York Times, 24 June 2008.

  79 ‘U.S. ambassador to Albania cleared in ammo cover-up’, Los Angeles Times, 19 March 2009.

  80 ‘Miami gun runner gets 4 years’, Talking Points Memo (TPM) Muckraker, 4 January 2011, http://tpmmuckraker.talkingpointsmemo.com/2011/01/miami_gun_runner_gets_4_years_says_good_times_werent_worth_it.php#more.

  81 This account is drawn from an interview with Feruzan Durdaj, Gerdec, 26 May 2010; and Klosi, Gerdec Disaster.

  82 This account is drawn from an interview with Feruzan Durdaj, Gerdec, 26 May 2010; and Klosi, Gerdec Disaster.

  83 Klosi, Gerdec Disaster.

  84 Ibid.

  85 Miriam F. Weismann, ‘The Foreign Corrupt Practices Act: The Failure of the Self-Regulatory Model of Corporate Governance in the Global Business Environment’, Journal of Business Ethics, 2009, pp. 615–61.

  86 OECD, United States: Phase 2, Report on Application of the Convention on Combating Bribery of Foreign Public Officials in International Business Actions and the 1997 Recommendation on Combating Bribery in International Business Transactions, www.oecd.org/dataoecd/52/19/1962084.pdf.

  87 Nelson D. Schwartz and Lowell Bergmann, ‘Payload: taking aim at corporate bribery’, The New York Times, 25 November 2007, http://www.nytimes.com/2007/11/25/business/25bae.html.

  88 Jeffrey Cramer, ‘The FCPA Game Has Changed: Trends in Enforcement’, Main Justice, 23 April 2010, http://www.mainjustice.com/2010/04/23/commentary-the-fcpa-game-has-changed-trends-in-enforcement/.

  89 Shearer & Sterling LLP, FCPA Digest of Cases and Review Releases Relating to Bribes to Foreign Officials under the Foreign Corrupt Practices Act of 1977 (as of February 13, 2008), Danforth Newcomb & Philip Urofsky Partners, Shearman & Sterling LLP (New York, New York).

  90 Brandon L. Garrett, Structural Reform Prosecution, 93 Va. L. Rev. 853, 860, 886, 890 (2007).

  91 Richard L. Cassin, Bribery Everywhere: Chronicles from the Foreign Corrupt Practices Act (lulu.com, 2009), p. 10.

  92 OECD, United States: Phase 2, Report on Application of the Convention on Combating Bribery of Foreign Public Officials in International Business Actions and the 1997 Recommendation on Combating Bribery in International Business Transactions (2002), p. 23, www.oecd.org/dataoecd/52/19/1962084.pdf.

  93 Ibid., p. 16. Retrieved 9 October 2010.

  94 OECD, United States: Phase 2, Follow up report on the implementation of the Phase 2 Recommendations on the Application of the Convention on Combating Bribery of Foreign Public Officials in International Business Actions and the 1997 Recommendation on Combating Bribery in International Business Transactions (2005), www.oecd.org/dataoecd/7/35/35109576.pdf.

  95 Shearman & Sterling LLP, US v. Lockheed Corporation, http://fcpa.shearman.com/?s=matter&mode=form&id=38.

  96 Cassin, Bribery Everywhere, p. 10.

  97 Tom Mcghie and Jenny Little, ‘BAE pension windfall wipes out £285m fine’, Daily Mail, 13 February 2010, http://www.dailymail.co.uk/money/article-1250840/BAE-pension-windfall-wipes-285m-fine.html.

  98 Dan Margolies, ‘Cocktails and wiretaps signal new anti-bribery era’, Reuters, 5 April 2010, http://www.reuters.com/article/idUSTRE6342MO20100405?pageNumber=2.

  99 ‘New rules on US airport laptop searches’, Reuters, 28 August 2009, http://www.pcpro.co.uk/news/enterprise/351172/new-rules-on-us-airport-laptop-searches.

100 Cassin, Bribery Everywhere, p. 54.

101 McKenna Long & Aldridge, ‘Financial reform bill includes FCPA whistleblower provision’, Lexology, 26 July 2010, http://www.lexology.com/library/detail.aspx?g=b41be68e-996f-499f-9d1e-392bbcaba3b6.

102 Cassin, Bribery Everywhere, p. 141.

103 Stefaans Brümmer and Sam Sole, ‘How arms-deal “bribes” were paid’, Mail & Guardian, 5 December 2008, http://www.mg.co.za/article/2008-12-05-how-arms-deal-bribes-were-paid.

104 KBR used its joint venture with Technip and Snamprogetti Netherlands BV (a subsidiary of Saipem SpA of Italy) and JGC of Japan to operate through three shell companies in Madeira, Portugal, which held consulting contracts with agents who passed bribes to Nigerian officials. Ownership was hidden by being held indirectly through KBR’s UK company, M. W. Kellogg Ltd. The three companies were named Madeira Company 1, 2 and 3. The boards of 1 and 2 included US citizens, but the third, through which the consultancy contracts were held, did not have any US citizens in the company as ‘a further part of KBR’s intentional effort to insulate itself from FCPA liability’. (Cassin, Bribery Everywhere, p. 37.)

105 Steptoe & Johnson LLP, ‘French companies prepare to pay hundreds of millions to U.S. authorities in foreign corruption matters’, Lexology, 15 July 2010, http://www.lexology.com/library/detail.aspx?g=c81d5e07-c77d-413c-9147-4a82c59cfe56.

106 Tara Patel, ‘Technip poised to win contracts as shares top CAC (Update2)’, Bloomberg, 31 December 2009, http://www.businessweek.com/news/2009-12-31/technip-poised-to-win-contracts-as-shares-top-cac-update2-.html.

107 Fiona Phillip, ‘7-year prison term for engineering executive illustrates new reach of anti-bribery law’, Main Justice, 30 April 2010, http://www.mainjustice.com/2010/04/30/commentary-7-year-prison-term-for-engineering-executive-illustrates-new-reach-of-anti-bribery-law/.

108 ‘Debarment for BAE’, FCPA Blog, 4 March 2010, http://www.fcpablog.com/blog/2010/3/4/debarment-for-bae.html.

109 Cassin, Bribery Everywhere, p. 23.

110 Leah Nylen, ‘FCPA debarment bill introduced in house’, Main Justice, 25 May 2010,

111 For a detailed account of the sting on Ardebili see the eight-part report starting with John Shiffman, ‘Shadow war: hunting Iranian arms brokers’, Philadelphia Inquirer, 17 September 2010, http://www.philly.com/philly/news/20100917_YARDLEY__APRIL_2004_To_capture_a_global_arms_smuggler.html?viewAll=y..

112 This account is summarized from ibid., from which the quotations are taken.

113 Dan Margolies, ‘Cocktails and wiretaps signal new anti-bribery era’, Reuters, 5 April 2010, http://www.reuters.com/article/idUSTRE6342MO20100405.

114 ‘FBI’s anti-corruption unit to expand’, Main Justice, 24 June 2010, http://www.mainjustice.com/2010/06/24/fbis-anti-corruption-unit-to-expand/.

115 Bruce Carton, ‘FCPA enforcement in 2010: prepare for blastoff’, Securities Docket, 10 March 2010, http://www.securitiesdocket.com/2010/03/10/fcpa-enforcement-in-2010-prepare-for-blastoff/.

116 Dan Margolies and Jeremy Pelofsky, ‘UPDATE 2 – U.S. charges 22 with bribery involving arms sales’, Reuters, 19 January 2010, http://www.reuters.com/article/idUSN1920007620100119?pageNumber=1.

117 Margolies, ‘Cocktails and wiretaps signal new anti-bribery era’ (see n. 113 above).

118 Neal Keeling, ‘Millionaire businessman held by FBI in arms “sting”’, Manchester Evening News, 3 February 2010, http://menmedia.co.uk/manchestereveningnews/news/s/1191265_millionaire_businessman_held_by_fbi_in_arms_sting.

119 Margolies and Pelofsky, ‘UPDATE 2’ (see n. 116 above).

120 Dan Margolies, ‘US request to detain arms sting defendant denied’, Reuters, 22 January 2010, http://www.reuters.com/article/idUSN2214138020100122.

121 Ken Stier, ‘U.S. cashes in on corporate corruption overseas’, Time, 7 April 2010, http://www.time.com/time/business/article/0,8599,1977526,00.html.

122 Project on Government Oversight, ‘The sting, part II: foreign bribery investigation claims another contractor scalp’, 27 January 2010, http://pogoblog.typepad.com/pogo/2010/01/the-sting-part-ii-foreign-bribery-investigation-claims-another-contractor-scalp.html.

123 Stier, ‘U.S. cashes in on corporate corruption overseas’, (see n. 121 above).

124 Carton, ‘FCPA enforcement in 2010’ (see n. 115 above).

125 Ibid.

126 ‘Defense wants information on informant in dramatic FCPA white-collar sting case’, Crime in the Suites, 16 July 2010, http://crimeinthesuites.com/defense-wants-information-on-informant-in-dramatic-fcpa-white-collar-sting-case/.

127 Peter J. Henning, ‘Going undercover for a white-collar sting’, The New York Times, 21 January 2010, http://dealbook.blogs.nytimes.com/2010/01/21/going-undercover-for-a-white-collar-sting/.

128 Warren Richey, ‘FBI sting nets 22 executives charged with paying bribes abroad’, Christian Science Monitor, 19 January 2010, http://www.csmonitor.com/USA/Justice/2010/0119/FBI-sting-nets-22-executives-charged-with-paying-bribes-abroad.

129 ‘Defense wants information on informant’, Crime in the Suites (see n. 126 above).

130 ‘Africa sting updates’, FCPA Professor Blog, 7 April 2010, http://fcpaprofessor.blogspot.com/search/label/Gabon.

131 Dan Margolies, ‘Defendant to plead guilty in arms sting case’, Reuters, 5 March 2010, http://www.reuters.com/article/idUSTRE62503D20100306.

132 Richey, ‘FBI sting nets 22 executives’ (see n. 128 above).

133 ‘Defendants attack cooperator’s drug addiction in huge foreign bribery case’, Main Justice, 7 June 2011.

134 Africa sting updates’, FCPA Professor Blog (see n. 130 above).

135 Margolies and Pelofsky, ‘UPDATE 2’ (see n. 116 above).

136 ‘FBI’s anti-corruption unit to expand’, Main Justice (see n. 114 above).

137 Stier, ‘U.S. cashes in on corporate corruption overseas’ (see n. 121 above).

138 Robert Reich, Locked in the Cabinet (New York: Vintage Books, 1997), pp. 30 and 41.

139 R. Pollin and H. Garrett-Peltier, The US Employment Effects of Military and Domestic Spending Priorities: An Updated Analysis, Political Economy Research Institute, University of Massachusetts, Amherst, October 2009.

140 Ibid.

141 The ideas in this section are drawn from Frida Berrigan, ‘How Shovel-Ready is the Pentagon?’, TomDispatch.com, 12 March 2009, and conversations with other leading analysts of the defence sector.

142 Ibid.

143 All figures from ibid.

144 Ibid.

145 Barron’s, 2 March 2009.

146 Berrigan, ‘How Shovel-Ready is the Pentagon?’

147 Cited in ibid.

148 ‘Remembering soldiers and defense lobbying, T-Paw’s Mideast slipup and more in capital eye opener: May 30’, Center for Reponsive Politics, Opensecrets.org, 30 May 2011, http://www.opensecrets.org/news/2011/05/ceo-5-30-2011.html.

149 Conversation with Chuck Lewis, December 2008; and investigations by Center for Public Integrity: ‘Outsourcing the Pentagon’, http://projects.publicintegrity.org/pns/report.aspx?aid=385.

150 Conversation with Andrew Cockburn, December 2008, Washington DC.

151 Conversation with Chuck Lewis, Washington DC, December 2008.

152 Interview with Chuck Spinney, 1 March 2010.

153 Ibid.

154 Interview with Bill Hartung, 28 July 2010.

155 Ibid.

156 See, for instance, ‘Karzai issues decree disbanding private security firms’, CNN, 17 October 2010.

157 ‘Obama announces framework for cutting deficit by $4 trillion over 12 years’, Washington Post, 13 April 2011.

158 Email communication from Winslow Wheeler, 14 April 2011.

159 See, for instance, ‘Panetta comes armed with background in budget fights’, The New York Times, 27 April 2011.

160 ‘Defense Buck Does Not Stop with This Debt Deal,’ Straus Military Reform Project, 2 August 2011.

161 ‘Lowering America’s war ceiling?’ TomDispatch.com, 2 August 2011, www.tomdispatch.com/blog/175425/tomgram%3A_engelhardt%2C_two-faced_washington/.

162 Frank James, ‘Obama lobbying ban hits DC reality’, Chicago Tribune, 22 January 2009, http://www.swamppolitics.com/news/politics/blog/2009/01/obama_lobbying_ban_hits_realit.html.

163 USA Today, 16 April 2008.

164 Quoted in Hartung, Prophets of War, from which this paragraph is drawn.

165 Interview with Chuck Spinney, 2 December 2010.

166 Quoted in W. T. Wheeler (ed.), The Pentagon Labyrinth (Washington: Center for Defense Information, World Security Institute, 2011).

167 Ibid.

17. America’s Shop Window

    1 R. Bergman, ‘The Secret War with Iran’, OneWorld, 2008. The US Marine Corps expressed a similar view in 1990: Major Cozy E. Bailey, ‘U.S. Policy towards Israel: The Special Relationship’, CSC,1990, http://www.globalsecurity.org/military/library/report/1990/BCE.htm.

    2 This excludes homeland security contracts, government-to-government/police-to-police training or military services contracts.

    3 SIPRI Yearbook 2010 (Oxford: OUP, 2010), pp. 286 and 320–21.

    4 OECD, OECD Reviews of Labour Market and Social Policies (Paris: OECD Publishing, January 2010), p. 18.

    5 From an interview with the economist and military analyst Shir Hever, Jerusalem, May 2010.

    6 Ibid.

    7 This historical survey is derived from ibid. and email conversations with and information from the defence analyst and activist Jimmy Johnson.

    8 From an interview with Shir Hever, Jerusalem, May 2010.

    9 Ibid.

  10 Neve Gordon, ‘Israel – Homeland Security Capital’, in Lyo Zureik and Abu-Laban (eds.), Surveillance and Control in Israel/Palestine: Population, Territory and Power (London: Routledge, 2011), p. 163.

  11 From an interview with Shir Hever, Jerusalem, May 2010.

  12 Naomi Klein, The Shock Doctrine (London: Penguin Books, 2007), p. 435.

  13 Ibid., pp. 436 and 439.

  14 Ibid., p. 440.

  15 Interview with Shir Hever, Jerusalem, May 2010.

  16 Quoted by Shir Hever in interview.

  17 Frida Berrigan, ‘Made in the USA: American Military Aid to Israel’, Journal of Palestine Studies, Vol. XXXVIII, No. 3 (Spring 2009), pp. 6–21.

  18 ‘Arms unto the Nations’, Globes Online, 29 April 2003.

  19 ‘US and Israel in $30bn arms deal’, BBC News, 16 August 2007, http://news.bbc.co.uk/1/hi/6948981.stm.

  20 Amnesty International, Israel/OPT: Fuelling Conflict: Foreign Arms Supplies to Israel/Gaza, MDE 15/012/2009, 23 February 2009.

  21 New Statesman, 26 January 2009.

  22 Berrigan, ‘Made in the USA’.

  23 Although many of the AMCs are domestically procured and not with FMF funds.

  24 Berrigan, ‘Made in the USA’.

  25 Bergman, ‘The Secret War with Iran’

  26 Ibid.

  27 Ibid.

  28 What follows is drawn from ibid. with additional information from my sources.

  29 For documents on Israel’s role in Iran–Contra see http://www.negedneshek.org/2011/03/operation-tipped-kettle/.

  30 Drawn from Bergman, ‘The Secret War with Iran’, with additional information from my sources.

  31 Quoted in ibid.

  32 Drawn from Bergman, ‘The Secret War with Iran’, with additional information from my sources.

  33 Ibid.

  34 Ibid.

  35 Interview with Ronen Bergman, Tel Aviv, May 2010.

  36 Drawn from Bergman, ‘The Secret War with Iran’.

  37 Quoted in ibid.

  38 Drawn from Bergman, ‘The Secret War with Iran’.

  39 Ibid.

  40 Quoted in Bergman, ‘The Secret War with Iran’.

  41 Ibid.

  42 Ibid.

  43 Ibid.

  44 ‘Fear of Russia ends Israeli support for Georgia’, Israel Today, 11 August 2008.

  45 See A. Egozi, ‘War in Georgia: the Israeli connection’, YNet News, 10 August 2008.

  46 Quoted in ibid.

  47 Ibid.; and ‘Israel’s military on display in Georgia’, Forward, 11 September 2008. In mid-2011, Ziv’s firm, Global CST, solicited business from the Georgian breakaway republic of Abkhazia. Should a contract emerge, Global CST will have trained both the Georgian forces and those of the Abkhazian breakway republic in the next war. Israeli access to Abkhazia comes, not coincidentally, as military relations with Russia continue to warm. Abkhazia has Russian patronage and would have been inaccessible to Israelis previously. (See also n. 51 below.)

  48 From an interview with Shir Hever, Jerusalem, May 2010.

  49 Interview with an Israeli journalist, Yossi Melman, May 2010.

  50 Ibid.

  51 ‘Why does Israel have links to a breakaway state supported by Hamas?’, Haaretz, 5 May 2011; and ‘Israeli security firm executives in Abkhazia’, Georgian Daily, 15 April 2011.

  52 See brochure at www.theshadowworld.com.

  53 Berrigan, ‘Made in the USA’.

  54 Ibid.

  55 ‘Sources: Israeli businesswoman brokering E. Guinea arms sales’, Haaretz, 12 November 2008.

  56 ‘Arms unto the Nations’ Globes Online, 29 April 2003.

  57 J. Johnson, ‘Israelis and Hezbollah haven’t always been enemies’, 11 September 2006, http://www.williambowles.info/syria_lebanon/israel_hezbollah.html.

  58 Sasha Polakow-Suransky, The Unspoken Alliance: Israel’s Secret Relationship with Apartheid South Africa (New York: Pantheon Books, 2010).

  59 The right of return gives any Jew the right to live in Israel and acquire Israeli citizenship, which can be very useful in terms of access to travel and banking facilities in Europe.

  60 ‘Olmert’s corruption indictment latest in host of Israeli cases’, Bloomberg, 30 August 2009.

  61 See for, instance, the use of stolen UK identities in the assassination of a Hamas official in Dubai in January 2010.

  62 As Jimmy Johnson points out, this is also because the Israeli economy has no place for many of them to pursue a civilian life.

  63 From an interview with Shir Hever, Jerusalem, May 2010.

  64 From an interview with Yossi Melman, Jerusalem, May 2010.

  65 Ibid.

  66 Interview with former arms salesman who wishes to remain anonymous, Jerusalem, May 2010.

  67 J. Mearsheimer and S. Walt, The Israel Lobby and US Foreign Policy (New York: Farrar, Straus and Giroux, 2008).

  68 This is drawn from William Hartung, Prophets of War (New York: Nation Books, 2011), p. 232.

  69 Berrigan, ‘Made in the USA’.

  70 Quoted in ibid.

  71 Figures from Hartung, Prophets of War, p. 233.

  72 Berrigan, ‘Made in the USA’.

  73 Ibid.

  74 Quoted in Hartung, Prophets of War, pp. 233–4.

  75 Berrigan ‘Made in the USA’.

  76 Figures from Hartung, Prophets of War, p. 234.

  77 Ibid.

  78 Quoted in Berrigan, ‘Made in the USA’.

  79 Ibid.

  80 Ibid.

  81 The ban was in place from 2007 to 2010. See ‘State Department lifts ban on exports of night-vision goggles’, Washington Times, 24 February 2010.

  82 The interview with this source was conducted in May 2010.

  83 Ibid.

  84 Berrigan, ‘Made in the USA’.

  85 ‘Despite row, U.S. and Israel sign massive arms deal’, Haaretz, 25 March 2010.

  86 ‘US–Saudi arms deal ripples from Iran to Israel’, Miami Herald, 21 October 2010, http://www.miamiherald.com/2010/10/21/1883887/us-saudi-arms-deal-ripples-from.html#ixzz13gn2ZR1l; and ‘Israel’s Barak approves US F-35 fighters purchase’, Reuters, 15 October 2010.

  87 Interview with Shir Hever, Jerusalem, May 2010.

18. Making a Killing: Iraq and Afghanistan

    1 Quoted in William Hartung, Prophets of War (New York: Nation Books, 2011), p. 197.

    2 Ibid., p. 208.

    3 Ibid., pp. 210–11.

    4 Ibid., pp. 211–12.

    5 Quoted in Eugene Jarecki, The American Way of War (New York: Free Press, 2008), p. 217.

    6 Hartung, Prophets of War, p. 213; Naomi Klein, The Shock Doctrine (London: Penguin Books, 2007), p. 425.

    7 Human Rights Watch, Genocide in Iraq: The Anfal Campaign against the Kurds (1993), http://www.hrw.org/legacy/reports/1993/iraqanfal/.

    8 Roger Hardy, ‘The Iran–Iraq war: 25 years on’, BBC News, 22 September 2005, http://news.bbc.co.uk/1/hi/4260420.stm.

    9 Derek Hopwood, ‘British Relations with Iraq’, BBC, 2 October 2003, http://www.bbc.co.uk/history/recent/iraq/britain_iraq_01.shtml.

  10 ‘Iran–Iraq War’, Twentieth Century Atlas, http://users.erols.com/mwhite28/warstat2.htm#Iran-Iraq. Number of lives lost seems to range between 377,000 and 1.2 million with most giving the figure as over 500,000 deaths.

  11 ‘The Spider’s Web: The Secret History of How the White House Illegally Armed Iraq’, Foreign Affairs, March/April 1994.

  12 ‘Gonzales’s Iraq expose – Hill chairman details US prewar courtship’, Washington Post, 22 March 1992.

  13 William Hartung, And Weapons for All (New York: Harper Perennial, 1995), p. 224.

  14 Ibid.

  15 See A. Sampson, The Arms Bazaar in the Nineties: From Krupp to Saddam (Dunton Green: Coronet, 2008), Afterword.

  16 Hartung, And Weapons for All, p. 240.

  17 ‘The Arsenal: Who Armed Baghdad’, Time, 11 February 1990.

  18 ‘Rumsfeld’s Account Book: Who Armed Saddam?’, Counterpunch, 24 February 2003.

  19 Ibid.

  20 Sampson, Arms Bazaar in the Nineties, pp. 367–8.

  21 ‘Sarkis Soghanalian’, PBS/Frontline World, May 2002, as part of PBS/Frontline World Special: ‘Gallery of International Arms Dealers’, www.pbs.org.

  22 Ibid.

  23 Sampson, Arms Bazaar in the Nineties, pp. 363–4.

  24 See R. Scott, Report of the Inquiry into the Export of Dual-Use Goods to Iraq and Related Prosecutions, Vol. 3 (1996).

  25 Ibid. and ‘Arms-to-Iraq pair welcome payout’, BBC News, 9 November 2001.

  26 Ibid.

  27 ‘The Arsenal: Who Armed Baghdad’, Time, 11 February 1990.

  28 Ibid.

  29 Sampson, Arms Bazaar in the Nineties, pp. 367–8.

  30 Stockholm International Peace Research Institute, Database of Weapons Transfers, www.sipri.org/contents/armstrade/at_data.html.

  31 Ibid., p. 369.

  32 Project for the New American Century, ‘Statement of Principles’, 3 June 1997. Available for download from www.newamericancentury.org.

  33 Ibid.

  34 Project for the New American Century, Rebuilding America’s Defenses, September 2000, p. i. Available for download from www.newamericancentury.org.

  35 Open Letter from the Project for the New American Century to the Honourable William J. Clinton, 26 January 1998, available for download from www.newamericancentury.org.

  36 Klein, Shock Doctrine, Chapter 15.

  37 ‘President Bush announces major combat operations in Iraq have ended’, remarks by the President from the USS Abraham Lincoln, 1 May 2003. Available for download from http://georgewbush-whitehouse.archives.gov.

  38 S. Bowen, Hard Lessons: The Iraq Reconstruction Experience. A Report from the Special Inspector General for Iraq Reconstruction (SIGIR), Chapter 27, p. 8. Available for download from www.nytimes.com.

  39 See D. Trautner, ‘A Personal Account and Perspective of the US Army Logistics Civil Augmentation Programme (LOGCAP)’, paper presented at Conference of Army Historians, 15 July 2004; and T. Christian Miller, Blood Money (New York: Back Bay Books, 2007), p. 75.

  40 M. Schwartz, Department of Defense Contractors in Iraq and Afghanistan: Background and Analysis, Congressional Research Service, R40764, 2010, p. 5. Available for download from www.crs.gov.

  41 Ibid., p. 8.

  42 Contractor’s Support of US Operations in Iraq, Congressional Budget Office, August 2008, pp. 1–3.

  43 Contingency Contracting: DoD, State and USAID Continues to Face Challenges Tracking Contractor Personnel and Contracts in Iraq and Afghanistan, United States Government Accountability Office, GA0-10-1, October 2009, p. 19. Available for download from www.gao.gov.

  44 At What Cost? Contingency Contracting in Iraq and Afghanistan, Interim Report by the Commission on Wartime Contracting, June 2009, p. 44.

  45 See, for example, ‘Kellogg, Brown and Root (KBR) to pay $8m to settle allegations of fraud’, US Department of Justice press release, 29 November 2006, available for download from www.usdoj.gov; P. Chatterjee, Halliburton’s Army (New York: Nation Books, 2009), pp. 63–5; and Halliburton’s Questioned and Unsupported Costs in Iraq Exceed $1.4 Billion, Joint Report prepared for Rep. Henry A. Waxman and Sen. Byron L. Dorgan, United States House of Representatives: Committee on Government Reform (Minority Staff), 27 June 2005, p. 15, available for download from http://dpc.senate.gov.

  46 J. Mayer, ‘Contract Sport’, The New Yorker, 16 February 2004.

  47 ‘Halliburton’s Boss from Hell’, Salon, 21 July 2004.

  48 ‘Cheney is still paid by Pentagon contractor’, Guardian, 12 March 2003.

  49 Chatterjee, Halliburton’s Army, p. 72.

  50 J. Stiglitz and L. Bilmes, The Three Trillion Dollar War (London: Penguin Books, 2009), p. 15.

  51 Halliburton’s Gasoline Overcharges, Report prepared for Reps. Henry A. Waxman and John D. Dingell, United States House of Representatives: Committee on Government Reform (Minority Staff), 21 July 2004. Available for download from http://dpc.senate.gov.

  52 Quoted in D. Rasor and R. Bauman, Betraying Our Troops: The Destructive Results of Privatizing War (New York: Palgrave Macmillan, 2008), pp. 59–67; and Miller, Blood Money, pp. 142–8.

  53 At What Cost?, Interim Report by the Commission on Wartime Contracting, pp. 10–11.

  54 Ibid., p. 13.

  55 Testimony of April Stephenson, Director: Defense Contract Audit Agency before the Commission on Wartime Contracting, 4 May 2009. Available for download from www.wartimecontracting.gov.

  56 Ibid.

  57 Bowen, Hard Lessons, p. 17 (see n. 39 above).

  58 See Jeremy Scahill, Blackwater: The Rise of the World’s Most Powerful Mercenary Army (London: Serpent’s Tail, 2007), pp. 145–66.

  59 Ibid., p. 155.

  60 ‘This year, contractor deaths exceed military ones in Iraq and Afghanistan’, Propublica, 23 September 2010, www.propublica.org.

  61 Miller, Blood Money, p. 76.

  62 ‘Hired guns from SA are flooding Iraq’, Cape Times, 4 February 2004.

  63 ‘Balkans soldiers find fortune in Baghdad’, IPSNews, 12 May 2004.

  64 ‘The enforcer’, Guardian, 20 May 2006.

  65 D. Campbell, ‘Marketing the new dogs of war’, Center for Public Integrity, 30 October 2002. Available for download from www.publicintegrity.org.

  66 Ibid.

  67 Ibid.

  68 ‘Tim Spicer’s world’, The Nation, 29 December 2004.

  69 ‘The Rule of Order 17’, Newsweek, 28 June 2006.

  70 Coalition Provisional Authority Order Number 17, CPA/ORD/27 June 2004/17, Section 4, para. 3. Available for download from www.iraqcoalition.org/regulations.

  71 ‘Lawyers, guns and money’, United Press International, 4 April 2008.

  72 ‘The Rule of Order 17’, Newsweek, 28 June 2006.

  73 ‘Red, White and Mercenary in Iraq’, Salon, 4 October 2007.

  74 Ibid.

  75 See Scahill, Blackwater, pp. 145–66.

  76 ‘The Bush Administration’s Ties to Blackwater’, Salon, 2 October 2007.

  77 Ibid.

  78 ‘POGO joins bi-partisan group of Senators in demanding Obama oust the SIGAR’, 23 September 2010, http://www.pogo.org/pogo-files/alerts/government-oversight/go-igi-20100923.html.

  79 ‘Blackwater “set up $1m hush fund after Iraq shootings”’, Sunday Times, 12 November 2009.

  80 Ibid.; ‘3 Blackwater guards called Baghdad shootings unjustified’, The New York Times, 16 January 2010; and ‘Blackwater in Baghdad: “It was a Horror Movie”’, Salon, 14 December 2007.

  81 Settlement Summary: Xe Services LLC (Xe) (Formerly Blackwater Worldwide), United States Department of State, Consent Agreement (CA), 18 August 2010 and Consent Order in the Matter of the United States Department of State Bureau of Political and Military Affairs and Xe Services LLC, 8/13 August 2010. Both available for download from www.pmddtc.state.gov.

  82 Ibid.

  83 Letter from Edolphus Towns, Chairman of US Congress Committee on Oversight and Government Reform, to the Hon. Hilary R. Clinton, Secretary of State, 26 August 2010. Available for download from www.oversight.house.gov.

  84 At What Cost?, Interim Report by the Commission on Wartime Contracting.

  85 Replacing and Repairing Equipment Used in Iraq and Afghanistan: The Army’s Reset Programme, Report by the Congressional Budget Office, September 2007, p. x. Available for download from www.cbo.gov.

  86 Ibid.

  87 Ibid., pp. 18–22.

  88 ‘Afghanistan withdrawal: Barack Obama says 33,000 troops will leave next year’, Guardian, 23 June 2011.

  89 Tom Engelhardt, ‘Details of secret pact emerge’, AlertNet, 23 August 2011.

  90 Replacing and Repairing Equipment Used in Iraq and Afghanistan (see n. 86 above), p. xii.

  91 Ibid., p. 14.

  92 A. Belasco, The Cost of Iraq, Afghanistan and Other Global War on Terror Operations since 9/11, Paper for the Congressional Research Service, 2 September 2010, Table 7, p. 30. Available for download from www.crs.gov.

  93 Ibid., p. 24.

  94 Ibid.

  95 C. Schumer and C. Maloney, War at Any Price: The Total Economic Costs of the War beyond the Federal Budget, Report by the Joint Economic Committee, 13 November 2007. Available for download from www.cfr.org.

  96 Stiglitz and Bilmes, Three Trillion Dollar War, pp. 15–16.

  97 Replacing and Repairing Equipment Used in Iraq and Afghanistan, p. ix (see n. 86 above). Available for download from www.cbo.gov. See also Belasco, Cost of Iraq, Afghanistan and Other Global War on Terror Operations(see n. 93 above).

  98 Stiglitz and Bilmes, Three Trillion Dollar War, p. 16.

  99 ‘Pentagon redefines “emergency”’, Wall Street Journal, 3 January 2007.

100 Ibid.

101 ‘Estimated Costs of US Operations in Iraq and Afghanistan and Other Activities Related to the War on Terrorism’, Statement of Robert A. Sunshine, Assistant Director for Budget Analysis: Congressional Budget Office before the Committee on the Budget, US House of Representatives, 31 July 2007. Available for download from www.budget.house.gov.

102 T. Sharp, ‘Problems with Using Supplemental Budget Process to Fund Ongoing Military Operations in Iraq and Afghanistan’, Center for Arms Control and Non-Proliferation, March 2008. Available for download from http://armscontrolcenter.org.

103 DoD Needs to Take Action to Encourage Fiscal Discipline and Optimize the Use of Tools Intended to Improve GWOT Cost Reporting, Report to Congressional Committees, Government Accountability Office, GA0-08-68, November 2007, p. 33. Available for download from www.gao.gov.

104 Hartung, Prophets of War, p. 213.

105 Ibid.

106 Ibid.

107 P. Chatterjee, ‘Meet the new interrogators: Lockheed Martin’, CorpWatch, 4 November 2005, www.corpwatch.org.

108 Hartung, Prophets of War, pp. 214–19.

109 Tim Shorock, Spies for Hire: The Secret World of Intelligence Outsourcing (New York: Simon & Schuster, 2008), p. 12.

110 ‘BAE Systems benefits from Iraq, Afghanistan armoured vehicles’, Daily Telegraph, 15 October 2008.

111 ‘BAE Systems completes acquisition of Armor Holdings, Inc.’, press release ref. 204/2007, 31 July 2007, www.baesystems.com.

112 ‘Drone Wars’, Forbes, 6 January 2009.

113 Share prices calculated using online tools available from the NYSE and FTSE websites.

114 Ibid.

115 Belasco, Cost of Iraq, Afghanistan and Other Global War on Terror Operations, p. 30 (see n. 93 above).

116 Share prices calculated using online tools available from the NYSE and FTSE websites.

117 Ibid.

118 Belasco, Cost of Iraq, Afghanistan and Other Global War on Terror Operations, p. 30 (see n. 93 above).

119 D. Farah and S. Braun, Merchant of Death (Hoboken, NJ: John Wiley & Sons, 2007), pp. 214–17.

120 Ibid., p. 225.

121 Ibid., p. 226.

122 Ibid., p. 221.

123 Ibid., p. 232.

124 Ibid., p. 249.

125 Amnesty International, Blood at the Crossroads: Making the Case for a Global Arms Treaty, ACT 30/011/2008, September 2008, p. 45.

126 Ibid.

127 Ibid.

128 See www.agilitylogistics.com.

129 ‘Taos industries team wins Logcap IV task order in Afghanistan’, Business Wire, 13 July 2009.

130 See www.agilitylogistics.com.

131 Amnesty International, Dead on Time – Arms Transportation, Brokering and the Threat to Human Right, ACT 30/008/2006, p. 104.

132 Amnesty International, Blood at the Crossroads, p. 46; and B. Wood, ‘International Initiatives to Prevent Illicit Brokering of Arms and Other Related Materials’, in Disarmament Forum, No. 3 (2009), p. 10.

133 Report of the Panel of Experts Appointed Pursuant to Paragraph 4 of Security Council Resolution 1458 (2003) Concerning Liberia, S/2003/498, 24 April 2003, pp. 19–21.

134 ‘British businessman to testify against “Merchant of Death”’, Independent, 27 July 2008; and Farah and Braun, Merchant of Death.

135 ‘Case Studies: Aerocom’, Stockholm International Peace Research Institute, undated, www.sipri.org.

136 Amnesty International, Blood at the Crossroads, Chapter 7.

137 Ibid.; and ‘UK guns in al-Qaeda hands’, Guardian, 19 March 2006.

138 ‘UK guns in al-Qaeda hands’, Guardian, 19 March 2006.

139 Ibid.

140 Ibid.

141 Ibid.

142 Stabilizing Iraq: DoD Cannot Ensure That US-Funded Equipment Has Reached Iraqi Security Forces, Report to Congressional Committees, Government Accountability Office, GAO-07-711, July 2007, p. 8. Available for download from www.gao.gov. The body responsible for the programme was the Multinational Security Transition Command-Iraq, or MSTC-I.

143 Ibid., p. 11.

144 ‘Missing US arms probe goes global’, Asia Times, 17 August 2007.

145 ‘Chevron joins the US–Ukraine Business Council’, press release, 5 August 2009, US–Ukraine Business Council. Available for download from www.usubc.org.

146 www.sasi-corp.com/forsales.html.

147 Ibid.

148 ‘US probes company’s covert operations’, Washington Post, 30 December 1998.

149 Ibid.

150 All contract information accessed via the Federal Procurement Data System, www.fdps.gov. The contract was made up of a number of separate, smaller orders, the largest order a touch under $28m, signed on 22 February 2007. See contract number/Referenced IDV: W91CRB04D0024.

151 Aram Roston, ‘The Unquiet American’, Washington Monthly, 5 June, 2005.

152 Ibid.

153 Miller, Blood Money, p. 230.

154 Dale Stoffel’s CV, exhibit 1 from seized hard drive posted online on 26 April 2005 by the ‘Political Committee Mujahideen Central Command’, www.albasrah.net.

155 Human Rights Watch, Bulgaria: Money Talks – Arms Dealing with Human Rights Abusers, 1 April 1999, D1104, available from www.unhcr.org. Accessed 4 April 2010.

156 Ibid.

157 Ibid.; Roston, ‘Unquiet American’; and Miller, Blood Money, p. 231.

158 Roston, ‘Unquiet American’.

159 R. Perucci and E. Wysong, The New Class Society: Goodbye American Dream? (Lanham, Md: Rowman & Littlefield, 2003), p. 124.

160 ‘Iran used Chalabi to dupe US, says report’, Seattle Times, 22 May 2004.

161 Aram Roston, The Man Who Pushed America to War (New York: Nation Books, 2008), p. 248.

162 Ibid.

163 Congressional Record: Proceedings and Debates of the 108 Congress, Second Session (Washington DC: US Government Printing Office, 2 June 2004), p. 11322.

164 Roston, ‘Unquiet American’.

165 According to company registers filed with the Panamanian central company registrar.

166 Wye Oak Technology Inc. v. Republic of Iraq, in the United States District Court for the Eastern District of Virginia, Submission by John Quinn and David Stoffel, Filed 20 July 2009, Civil Case No. 1:09CV793, paras. 10–14.

167 ‘Iraq: corruption, missing millions and two dead contractors’, Associated Press, 28 January 2006.

168 Complaint Exhibit 2 submitted as attachment to Wye Oak Technology Inc. v. Republic of Iraq (see n. 167 above).

169 ‘U.S. Army failed to investigate warnings of corruption’, Los Angeles Times, 14 March 2005.

170 Wye Oak Technology Inc. v. Republic of Iraq (see n. 167 above), para. 18.

171 ‘Salameh: government cannot force return of Iraqi money’, Daily Star (Lebanon), 6 February 2004.

172 ‘U.S. Army failed to investigate warnings of corruption’, Los Angeles Times, 14 March 2005; and ‘Contractor accused of fraud in Iraq’, Seattle Times, 9 October 2004.

173 Wye Oak Technology Inc. v. Republic of Iraq (see n. 167 above), para. 27.

174 Roston, ‘Unquiet American’.

175 Ibid.

176 ‘Memorandum of Understanding’, 20 June 2004 (unsigned), from seized hard drive posted online on 26 April 2005 by the ‘Political Committee Mujahideen Central Command’, www.albasrah.net. Also available at www.theshadowworld.com.

177 Ibid.

178 It’s assumed Newco was just a place-holder.

179 Memorandum of Understanding’ (see n. 177 above).

180 Ibid.

181 msnbc, 12 November 2004.

182 Wye Oak Technology Inc. v. Republic of Iraq (see n. 167 above), para. 29.

183 ‘Inquiry on graft in Iraq focuses on US officers’, The New York Times, 14 February 2009.

184 Wye Oak Technology Inc. v. Republic of Iraq (see n. 167 above), para. 29.

185 ‘Inquiry on Graft in Iraq Focuses on US Officers’, The New York Times, 14 February 2009.

186 ‘Response to Motion for Order Pursuant to Customer Challenge Provisions of Right to Financial Privacy Act’ in the Matter of Anthony B. Bell (Movant) v. Special Inspector General for Iraq Reconstruction (Respondent) in the United States District Court, Northern District of Georgia, Civil Action No. 3:09-mi-00003 and 3:09-mi-00002, 2 March 2009.

187 ‘Declaration of Special Agent James J. Crowley’ submitted as supporting evidence in ‘Response to Motion for Order Pursuant to Customer Challenge Provisions of Right to Financial Privacy Act’ in the Matter of Anthony B. Bell (Movant) v. Special Inspector General for Iraq Reconstruction (Respondent) in the United States District Court, Northern District of Georgia, Civil Action No. 3:09-mi-00003 and 3:09-mi-00002, 2 March 2009.

188 ‘Afghanistan withdrawal: Barack Obama says 33,000 troops will leave next year’, Guardian, 23 June 2011.

189 Ibid.

190 ‘US troops may stay in Afghanistan until 2024’, Daily Telegraph, 19 August 2011.

191 Belasco, Cost of Iraq, Afghanistan and Other Global War on Terror Operations (see n. 93 above). The total cost for the three projects examined – wars in Iraq and Afghanistan and enhanced security at US bases in the region – was $1.121tn.

192 Ibid.

193 Ibid.

194 Ibid.

195 ‘Economic Cost Summary: Costs of War’, www.costsofwar.org. Downloaded 2 July 2011.

196 ‘The true cost of the Iraq War: $3 trillion and beyond’, Washington Post, 5 September 2010.

197 Ibid.

198 Ibid.

199 ‘Potential Jobs’, www.costsofwar.org. Downloaded 2 July 2011.

200 ‘Costs of War Summary’, www.costsofwar.org. Downloaded 2 July 2011.

201 Amnesty International, Blood at the Crossroads, Section 7; ‘Afghanistan: Arms Proliferation Fuels Further Abuse’, Amnesty International public briefing, 2008, www.amnesty.org; M. Bhatia, ‘Small Arms Flows into and within Afghanistan’, in M. Bhatia, and M. Sedra, Afghanistan, Arms and Conflict (Abingdon: Routledge & Small Arms Survey, 2008), p. 38.

202 P. Cockburn, The Occupation: War and Resistance in Iraq (London: Verso, 2007), p. xxii.

203 Ibid.

204 For an excellent account of corruption scandals facing the Al-Karzai government, see P. Chatterjee, ‘Paying Off the Warlords: Anatomy of a Culture of Corruption’, in N. Turse (ed.), The Case for Withdrawal from Afghanistan (London: Verso, 2010), pp. 81–6.

205 ‘Woman said to have been used as human shield for bin Laden’, Washington Post, 2 May 2011.

206 Cockburn, The Occupation, p. xxii.

207 Stiglitz and Bilmes, Three Trillion Dollar War, p. 15.

Section V: The Killing Fields

19. Cry, the Beloved Continent

    1 ‘President Bush Creates a Department of Defense Unified Command for Africa’, White House statement, 6 February 2007, http://georgewbush-whitehouse.archives.gov. Africom was fully operational by late 2008.

    2 Richard H. Robbins, Global Problems and the Culture of Capitalism (Boston, Mass.: Allyn and Bacon, 2002).

    3 D. Fruchart, ‘Case Study: Rwanda, 1994–Present’, in United Nations Arms Embargoes: Their Impact on Arms Flow and Target Behaviour, Report by the Stockholm International Peace Research Institute (SIPRI), 2007, pp. 2–5.

    4 Human Rights Watch, Arming Rwanda – The Arms Trade and Human Rights Abuses in the Rwandan War, 1 January 1994, A601, available at http://www.unhcr.org/refworld/docid/3ae6a7fc8.html.

    5 Ibid.

    6 For an excellent analysis of the relationship between the Rwandan genocide and the economic crisis caused by declining coffee prices, see P. Verwimp, ‘The Political Economy of Coffee, Dictatorship and Genocide’, European Journal of Political Economy, Vol. 19, Issue 2, June 2003, pp. 161–81.

    7 Fruchart, ‘Case Study: Rwanda, 1994–Present’, pp. 2–5.

    8 Human Rights Watch, Arming Rwanda (see n. 4 above).

    9 Ibid.

  10 ‘Profile: Agatha Habyarimana, the power behind the Hutu presidency’, Guardian, 2 March 2010.

  11 L. Melvern, Conspiracy to Murder: The Rwandan Genocide (London: Verso, 2006), p. 50.

  12 Ibid.

  13 Ibid., pp. 55–6.

  14 Ibid., pp. 21–32.

  15 Ibid., p. 21.

  16 P. Mangarella, ‘Explaining Rwanda’s 1994 Genocide’, Human Rights and Human Welfare, Vol. 2, Issue 1, Winter 2002.

  17 N. McNulty, ‘French Arms, War and Genocide’, Crime, Law & Social Change, Vol. 33 (2000), p. 107.

  18 Fruchart, ‘Case Study: Rwanda, 1994–Present’, pp. 5–10.

  19 N. Alusala, ‘The Arming of Rwanda and the Genocide’, African Security Review, Vol. 12 (2004), No. 2, p. 138.

  20 Ibid.

  21 Human Rights Watch, Arming Rwanda (see n. 4 above).

  22 Ibid.

  23 Ibid.

  24 Fruchart, ‘Case Study: Rwanda, 1994–Present’, pp. 5–10.

  25 Melvern, Conspiracy to Murder, pp. 57–8.

  26 Ibid.

  27 McNulty, ‘French Arms, War and Genocide’, p. 109.

  28 ‘France’s shame?’, Guardian, 11 January 2007; and Stephen Ellis, email communication, 19 June 2011.

  29 McNulty, ‘French Arms, War and Genocide’, p. 110.

  30 Ibid.

  31 Ibid., pp. 110–11.

  32 Fruchart, ‘Case Study: Rwanda, 1994–Present’, pp. 6–7.

  33 Ibid.

  34 Ibid., p. 6.

  35 ‘Rwanda’s mystery that won’t go away’, BBC News, 29 November 2006. See also ‘Habyarimana killed by his own forces’, The New York Times, 12 January 2010; and ‘Habyarimana killed by his own army – UK experts’, The East African, 10 January 2010.

  36 Committee of Experts Investigation of the April 6, 1994 Crash of President Habyarimana’s Dassault Falcon-50 Aircraft, Media Guide, Republic of Rwanda, January 2010, pp. 5–6. Available for download from http://mutsinzireport.com.

  37 Zach Dubinsky. ‘The Lessons of Genocide’, in Essex Human Rights Review, Vol. 2 (2005), No. 1, p. 112; and ‘Rwanda leader defiant on killing claim’, BBC News, 30 January 2007.

  38 ‘Bloody trade that fuels Rwanda’s war’, Independent, 23 November 1996.

  39 M. Phythian, ‘The Illicit Arms Trade: Cold War and Post-Cold War’, in M. Phythian (ed.), Under the Counter and over the Border: Aspects of the Contemporary Trade in Illicit Arms (Dordrecht, Netherlands: Kluwer Academic Publishers, 2000), pp. 21–4.

  40 ‘Arming Africa: who is the second largest supplier of weapons on the world? China? France? Russia? No, it’s Britain’, Independent, 19 November 1996.

  41 Ibid.; and Fruchart, ‘Case Study: Rwanda, 1994–Present’, p. 17.

  42 Fruchart, ‘Case Study: Rwanda, 1994–Present’, p. 17.

  43 Phythian, ‘The Illicit Arms Trade’ pp. 21–4.

  44 ‘Rwanda: how the genocide happened’, BBC News, 18 December 2008; and ‘OAU sets inquiry into Rwandan genocide’, Africa Recovery, Vol. 12, No. 1, August 1998.

  45 Ibid.

  46 Estimate calculated from the figure of 800,000 killed.

  47 ‘Sex Violence: A Tool of War’, Lessons from Rwanda: The United Nations and the Prevention of Genocide, www.un.org/preventgenocide.

  48 Ibid.

  49 See P. Verwimp, ‘Machetes and Firearms: The Organization of Massacres in Rwanda’, Journal of Peace Research, Vol. 43 (2006), No. 1.

  50 Ibid.

  51 For a detailed and eviscerating account of colonial rule in the Congo, see Adam Hochschild, King Leopold’s Ghost (London: Pan Macmillan, 2006).

  52 For a detailed biography of Lumumba, see R. McKown, Lumumba: A Biography (London: Doubleday, 1969), L. De Witte, The Assassination of Lumumba (London: Verso, 2001), and L. Zeilig, Lumumba: Africa’s Lost Leader (London: Haus, 2008).

  53 R. Fredland, Understanding Africa: A Political Economy Perspective (Lanham, Md: Rowman & Littlefield, 2001), p. 128.

  54 Country Profile: The Democratic Republic of Congo, Action for Southern Africa Report, www.actsa.org.

  55 ‘Who killed Lumumba?’, BBC News, 21 October 2000.

  56 See De Witte, Assassination of Lumumba, and ‘US Role in Lumumba Murder Revealed’, AllAfrica and Washington Post, 22 July 2002. The latter article, by Dr Stephen Weissman, an African expert once employed by the US House of Representatives, suggests that the assassination of Lumumba took place at exactly the same time as the CIA was running Project Arrow, a campaign to fund opponents to Lumumba, which, tellingly, made payments to the generals who eventually murdered Lumumba. A one-page memo, released by the Agency in 2007 among a cache of documents, described a ‘project involving the assassination of Patrice Lumumba, then premier of the Republic of Congo.… Poison was said to have been the vehicle.’ (‘CIA releases files on past misdeeds’, Washington Post, 27 June 2007.) In 2002, forty-one years after the murder, Belgium officially apologized for its role in Lumumba’s death (‘Lumumba apology: Congo’s mixed feelings’, BBC News, 6 February 2002).

  57 N. McNulty, ‘The Collapse of Zaire: Implosion, Revolution or External Sabotage?’, Journal of Modern African Studies, Vol. 37 (1999), No. 1, p. 59

  58 His new name in full was Mobutu Sese Seko Nkuku Ngbendu Wa Za Banga, which means ‘The all-powerful warrior who, because of his endurance and inflexible will to win, will go from conquest to conquest, leaving fire in his wake.’

  59 H. Weiss, ‘War and Peace in the Democratic Republic of the Congo’, Current African Issues, No. 22 (2000).

  60 ‘Mobutu Sese Seko, 66, longtime dictator of Zaire’, The New York Times, 8 September 1997.

  61 See McNulty, ‘Collapse of Zaire’, p. 59.

  62 Joe Bavier, ‘Congo’s New Mobutu’, Foreign Policy, 29 June 2010.

  63 M. Wrong, ‘The Emperor Mobutu’, Transition, No. 81/82 (2000), p. 99–102.

  64 Weiss, ‘War and Peace’.

  65 See, for example, Howard French, ‘Kagame’s Hidden War in the Congo’, New York Review of Books, 24 September 2009.

  66 ‘Leaked UN report accuses Rwanda of possible genocide in the Congo’, Guardian, 26 August 2010. See also ‘UN discovers possible DRC genocide’, News24, 26 August 2010.

  67 ‘UN revises DRC “genocide” report’, Al-Jazeera, 1 October 2010.

  68 Weiss, ‘War and Peace’.

  69 Ibid.

  70 Ibid.

  71 D. Fruchart, ‘Case Study: Democratic Republic of Congo, 2003–2006’, in United Nations Arms Embargoes: Their Impact on Arms Flows and Target Behaviour (Stockholm: Stockholm International Peace Research Institute (SIPRI), 2007), pp. 2–3.

  72 A. Hochschild, ‘Heart of Sadness: Congo’, Amnesty Magazine, www.amnestyusa.org.

  73 Amnesty International, Democratic Republic of Congo: Children at War, September 2003, AFR 62/034/2003, p. 4, footnote 8.

  74 J. Murison, ‘The Politics of Refugees and Internally Displaced Persons in the Congo War’, in J. Clark (ed.), The African Stakes of the Congo War (New York: Palgrave Macmillan, 2002), p. 228.

  75 Amnesty International, Democratic Republic of Congo: Children at War, p. 1.

  76 ‘DR Congo’s women in the frontline’, BBC News, 6 November 2002.

  77 Ibid.

  78 See Amnesty International, Democratic Republic of Congo: Children at War, p. 1.

  79 Hochschild, ‘Heart of Sadness: Congo’.

  80 Fruchart, ‘Case Study: Democratic Republic of Congo, 2003–2006’, pp. 2–3.

  81 Ibid., p. 3.

  82 Final Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth in the Democratic Republic of Congo, 16 October 2002, S/2002/1146, paras. 12–24.

  83 Ibid., para. 39.

  84 Ibid.

  85 Ibid., para. 40.

  86 Ibid.

  87 Ibid.

  88 ‘The arms dealer who could bring down Zuma’, Independent, 27 November 2008; ‘Millionaire accused of propping up Mugabe’, Guardian, 27 November 2008.

  89 ‘Smoke, sex and the arms deal’, Mail & Guardian, 28 October 2008.

  90 Ibid. See Chapter 9 for Bredenkamp’s denial of a major role with BAE and his closeness to Mugabe.

  91 Final Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth in the Democratic Republic of Congo, 16 October 2002, S/2002/1146, para. 56.

  92 Ibid.

  93 Ibid.

  94 Ibid., Annex II, Category II.

  95 Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of Congo, 23 October 2003, S/2003/1027, paras. 22–9.

  96 Ibid., para. 23.

  97 The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States: www.ustreas.gov/offices/enforcement/ofac.

  98 ‘Treasury Designates Mugabe Regime Cronies’, statement issued by the United States Department of the Treasury, 25 November 2008.

  99 See Council Decision 2011/101/CFSP of 15 February 2011 concerning restrictive measures against Zimbabwe, in the Official Journal of the European Union, 16 February 2011, and Department of the Treasury, Office of Foreign Assets Control, ‘Specially Designated Nationals and Blocked Persons’, 21 June 2011, http://www.treasury.gov/ofac/downloads/t11sdn.pdf.

100 Amnesty International, Democratic Republic of Congo: Arming the East, AFR 62/006/2005, July 2005, pp.. 53–4.

101 Final Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth in the Democratic Republic of Congo, 16 October 2002, S/2002/1146, para. 107.

102 Ibid., para. 72.

103 Amnesty International, Democratic Republic of Congo: Arming the East, pp. 53–4.

104 Ibid.

105 Ibid.

106 Fruchart, ‘Case Study: Democratic Republic of Congo, 2003–2006’, p. 5.

107 B. Johnson-Thomas and P. Danssaert, Zimbabwe – Arms and Corruption: Fuelling Human Rights Abuses, International Peace Information Service, July 2009, www.ipisresearch.be.

108 Ibid.

109 Tom Cooper and Pit Weinert, ‘Zaire/DRC since 1980’, ACIG.org, http://www.acig.org/artman/publish/printer_190.shtml; and Ryan Dilley, ‘The “trainer” jet the UK loves to Hawk’, BBC News, 29 May 2002, http://news.bbc.co.uk/1/hi/uk/2012743.stm.

110 ‘Zimbabwe–China relations: who benefits?’, a speech by Wilf Mabanga delivered at the University of the Witwatersrand, 8 April 2011.

111 See ‘Global and Inclusive Agreement on Transition in the Democratic Republic of the Congo: Inter-Congolese Dialogue’, signed in Pretoria on 16 December 2002, available for download from www.reliefweb.int.

112 Ibid.

113 See Peter Danssaert and Brian Johnson-Thomas, Greed and Guns: Uganda’s Role in the Rape of the Congo, International Peace Information Service, 2005. Available for download from www.ipisresearch.be.

114 Conflict Minerals and the Democratic Republic of Congo, Report by Business for Social Responsibility, 2010, p. 1. For a detailed history of mining in the DRC from the colonial era to the present, and its impact on conflict, see The Role of the Exploitation of Natural Resources in Fuelling and Prolonging Crises in the Eastern DRC, International Alert, 2009.

115 Conflict Minerals and the Democratic Republic of Congo, Report by Business for Social Responsibility, 2010, p. 1.

116 Report of the Security Council Mission to the Democratic Republic of the Congo, S/2010/288, 30 June 2010, paras. 3–6.

117 Ibid., para. 8.

118 ‘UN: DRC mass rapes defy belief’, Mail & Guardian, 24 September 2010.

119 Resolution 1493 (2003) Adopted by the Security Council at Its 4797th Meeting, 28 July 2003, S/RES/1493 (2003).

120 Fruchart, ‘Case Study: Democratic Republic of Congo, 2003–2006’, pp. 9–11.

121 Resolution 1596 (2005) Adopted by the Security Council at Its 5163rd Meeting, 18 April 2005, S/RES/1596 (2005); and Resolution 1807 (2008) Adopted by the Security Council at Its 5861st Meeting, 31 March 2008, S/RES/1807 (2008).

122 Amnesty International, Democratic Republic of Congo: Arming the East, pp. 66–70.

123 Joe Bavier, ‘Congo’s New Mobutu’, Foreign Policy, 29 June 2010.

124 Human Rights Watch, Transparency and Accountability in Angola: An Update, New York, 2010, p. 1.

125 Ibid.

126 Ibid., p. 2.

127 ‘Human Development Report 2009 – HDI Rankings’, http://hdr.undp.org/en/statistics.

128 Human Development Indicators –Angola (Rank 143), 2009, http://hdr.undp.org .

129 For an excellent and brief summary of Angola’s colonial heritage, see M. Newitt, ‘Angola in Historical Context’, in P. Chabal and N. Vidal (eds.), Angola: The Weight of History (New York: Columbia University Press, 2008). Pages 28–33 are particularly useful for a discussion of the slave trade. For a more detailed account of the slave trade in Angola, see Joseph C. Miller’s mammoth Way of Death (Madison: University of Wisconsin Press, 1997).

130 ‘Angola Profile: Timeline’, BBC News Africa, 19 July 2011.

131 T. Hodges, Angola: From Afro-Stalinism to Petro-Diamond Capitalism (Norway and Indiana: International African Institute and James Currey, 2001), pp. 6–8.

132 Ibid.

133 Human Rights Watch Arms Project and Human Rights Watch/Africa, Angola: Arms Trade and Violations of the Laws of War since the 1992 Elections, 1994, p. 8. See also see W. Minter, Apartheid’s Contras (Johannesburg: Witwatersrand University Press, 1994).

134 ‘Jonas Savimbi – Obituary’, Independent, 25 February 2002.

135 ‘Jonas Savimbi’, The Economist, 28 February 2002.

136 A. Mazrui, The Warrior Tradition in Modern Africa (Leiden: Brill, 1977), p. 227.

137 Human Rights Watch Arms Project and Human Rights Watch/Africa, Angola: Arms Trade and Violations of the Laws of War, p. 9; and D. Herbstein and D. Evenson, The Devils are among Us: The War for Namibia (New York: Zed Books, 1989), p. 175.

138 C. Legum, Africa Contemporary Record: Annual Survey and Documents, Vol. 18 (Teaneck, NJ: Holmes & Meier, 1987), p. A-33.

139 Christopher Andrew, For the President’s Eyes Only (London: HarperCollins, 1995), p. 412; R. Immerman and A. Theoharis, The Central Intelligence Agency: Security Under Scrutiny (Westport, Conn.: Greenwood Press, 2006), p. 412.

140 A. Vines, Angola Unravels: The Rise and Fall of the Lusaka Peace Process (New York and London: Human Rights Watch, 1999), p. 7.

141 For a detailed study of US covert support in Angola, see J. Stockwell, In Search of Enemies: A CIA Story (New York: W. W. Norton & Company, 1997).

142 J. Potgieter, ‘Taking Aid from the Devil Himself: Unita’s Support Structures’, in J. Cilliers and C. Dietrich (eds.), Angola’s War Economy (Pretoria and Cape Town: Institute for Security Studies, 2000), p. 260.

143 Truth and Reconciliation Commission of South Africa Report, Vol. 2, 1998, Chapter 2, paras. 50–73.

144 Ibid.

145 A. Vines, ‘Angola: Forty Years of War’, in P. Batchelor, K. Kingama and G. Lamb (eds.), Demilitarisation and Peace-Building in Southern Africa (Aldershot and Burlington: Ashgate Publishing, 2004) p. 78.

146 Ibid.

147 Resolution 864 (1993) Adopted by the Security Council at Its 3277th Meeting, 15 September 1993, S/RES/864 (1993).

148 Vines, ‘Angola: Forty Years of War’, p. 78.

149 Ibid., pp. 79–80.

150 Ibid.

151 Ibid.

152 S. Roberts and J. Williams, After the Guns Fall Silent: The Enduring Legacy of Landmines (Washington: Vietnam Veterans’ Association of America and Oxfam, 1995), p. 109.

153 See Report of the Panel of Experts on Violations of Security Council Sanctions against Unita, 10 March 2000, S/2000/203.

154 Ibid., para 49.

155 C. Dietrich, ‘UNITA’s Diamond Mining and Exporting Capacity’, in Cilliers and Dietrich (eds.), Angola’s War Economy, p. 274.

156 Ibid., p. 278.

157 Ibid.

158 J. Sherman, ‘Profit vs Peace: The Clandestine Diamond Economy of Angola’, Journal of International Affairs, 1 April 2001, pp. 2–3.

159 Vines, Angola Unravels, Chapter IX.

160 See Report of the Panel of Experts on Violations of Security Council Sanctions against Unita, 10 March 2000, S/2000/203, paras. 16–17.

161 Ibid.

162 Global Witness, All the Presidents’ Men, March 2002, p. 11.

163 Ibid.

164 Ibid.

165 K. Silverstein, ‘The Arms Dealer Next Door’, In These Times, 22 December 2001.

166 Global Witness, All the Presidents’ Men, March 2002, p. 11.

167 Ibid., p. 12.

168 Ibid.

169 E. Allen and N. Intalan, ‘Anatomy of a Scandal’, World Policy Journal, Vol. 27 (2010), No. 1, pp. 14–15.

170 Ibid.

171 Ibid.; and Global Witness, All the Presidents’ Men, March 2002, p. 11.

172 ‘Profile of Arcadi Gaydamak’, BBC News, 13 July 2007.

173 Judgment, Tribunal de Grande Instance de Paris, 11ème Chambre: 3ème Section, République Française, Au Nom du Peuple Français, No. 0019292016, p. 206.

174 Silverstein, ‘Arms Dealer Next Door’.

175 Judgment, Tribunal de Grande Instance de Paris, 11ème Chambre: 3ème Section, République Française, Au Nom du Peuple Français, No. 0019292016, pp. 170–71.

176 Resolution 864 (1993), United Nations Security Council, 15 September 1993, S/RES/864, para. 19.

177 Judgment, Tribunal de Grande Instance de Paris, 11ème Chambre: 3ème Section, République Française, Au Nom du Peuple Francais, No. 0019292016, pp. 170–71.

178 Global Witness, All the Presidents’ Men, March 2002, p. 11.

179 Mitterrand: ‘French establishment players convicted over arms to Angola scandal’, Sunday Times, 28 October 2009. Pasqua: ‘French power brokers convicted over arms to Angola’, Reuters, 27 October 2009; ‘France ex-minister Pasqua acquitted over Angola arms’, BBC News, 24 April 2011.

180 Silverstein, ‘The Arms Dealer Next Door’. The GOP returned the contributions following Falcone’s detention.

181 Allen and Intalan, ‘Anatomy of a Scandal’, pp. 14–15.

182 Ibid.

183 Ibid.

184 Ibid.

185 Quoted in Counterpunch, 26 February 2008, and Dominique Manotti, Affairs of State (London: Arcadia Books, 2009), Epigraph.

186 Vines, Angola Unravels p. 7.

187 D. Farah and S. Braun, Merchant of Death (Hoboken, NJ: John Wiley & Sons, 2007), pp. 80–84.

188 Ibid.

189 Belarus, Brazil, Bulgaria, Canada, the Czech Republic, Hungary, Kazakhstan, Moldova, Peru, Poland, Russia, Slovakia, South Africa, Spain and Ukraine. (Information generated via the SIPRI customizable arms trade database: http://armstrade.sipri.org.)

190 Ibid.

191 Report of the Panel of Experts on Violations of Security Council Sanctions against Unita, 10 March 2000, S/2000/203, paras. 18–20.

192 Ibid.

193 Ibid.

194 Ibid.

195 Global Witness, For a Few Dollars More, April 2003, pp. 21–3.

196 ‘Revealed: ex-Soviet officer turns sanction buster’, Financial Times,10 July 2000.

197 Report of the Panel of Experts on Violations of Security Council Sanctions against Unita, 10 March 2000, S/2000/203, paras. 28–31.

198 Global Witness, For a Few Dollars More, April 2003, p. 23.

199 Ibid.

200 ‘Africa’s gems: warfare’s best friend’, The New York Times, 6 April 2000.

201 Report of the Panel of Experts on Violations of Security Council Sanctions against Unita, 10 March 2000, S/2000/203, paras. 28–31.

202 Ibid.

203 Report of the Panel of Experts on Violations of Security Council Sanctions against Unita, April 2000, S/2002/486, paras. 17–18.

204 ‘Jonas Savimbi: Obituary’, Guardian, 25 February 2002.

205 Africa South of the Sahara 2004 (London: Europa Publications, 2004), p. 45.

206 Ibid.

207 ‘Angola rebel leader’s death confirmed’, BBC News, 24 February 2002.

208 Angola’s Wealth: Stories of War and Neglect, September 2001, Oxfam Briefing Paper, p. 6; and ‘Digging up Angola’s deadly litter’, Christian Science Monitor, 27 July 2001.

209 V. Britain, ‘Angola: What Kind of Peace after Decades of War?’, Conflict, Security & Development, Vol. 2 (2002), No. 2.

210 K. Menkhaus, ‘Governance without Government in Somalia’, International Security, Vol. 31, No. 3 (Winter 2006/2007), p. 74.

211 For a detailed examination of the role of clan-based networks in the politics of Somalia, see H. Adam, ‘Militarism, Warlordism or Democracy?’, Review of African Political Economy, No. 54, July 1992.

212 Ismail I. Ahmed and R. H. Green, ‘The Heritage of War and State Collapse in Somalia and Somaliland: Local-Level Effects, External Interventions and Reconstruction’, Third World Quarterly, Vol. 20 (1999), No. 1, pp. 115–16.

213 Ibid.

214 Report of the Panel of Experts on Somalia Pursuant to Security Council Resolution 1425 (2002), S/2003/223, p. 13.

215 Ibid.

216 Ibid.

217 K. Medani, ‘Financing Terrorism or Survival?: Informal Finance and State Collapse in Somalia and the US War on Terrorism’, Middle East Report, No. 223, Summer 2002, p. 7.

218 Ahmed and Green, ‘The Heritage of War and State Collapse in Somalia and Somaliland’, pp. 116–17.

219 Ibid., pp. 116–20.

220 Medani, ‘Financing Terrorism or Survival’, pp. 6–10.

221 Ahmed and Green, ‘The Heritage of War and State Collapse in Somali and Somaliland’, p. 116.

222 Menkhaus, ‘Governance without Government in Somalia’, p. 80.

223 See Report of the Panel of Experts on Somalia Pursuant to Security Council Resolution 1425 (2002), S/2003/223.

224 Ahmed and Green, ‘The Heritage of War and State Collapse in Somalia and Somaliland’, p. 119.

225 Ibid.

226 Ibid.

227 Ibid., pp. 119–120.

228 Ibid.

229 L. Cliffe, Armed Violence and Poverty in Somalia, Centre for International Cooperation and Security/University of Bradford: Department for Peace Studies, March 2005, p. 7.

230 ‘Somalia: in the market for war’, Guardian, 7 June 2010.

231 ‘Arms dealers revel in Somali war business’, Reuters, 9 June 2009.

232 Ibid.

233 Cliffe, Armed Violence and Poverty in Somalia, pp. 8–9.

234 Report of the Panel of Experts on Somalia Pursuant to Security Council Resolution 1425 (2002), S/2003/223, paras. 118–37.

235 Cliffe, Armed Violence and Poverty in Somalia, pp. 8–9.

236 ‘Arms dealers revel in Somali war business’, Reuters, 9 June 2009.

237 ‘Peacekeepers sell arms to Somalis’, BBC News, 23 May 2000.

238 Report of the Panel of Experts on Somalia Pursuant to Security Council Resolution 1425 (2002), S/2003/223, para. 21.

239 Ibid., para. 41.

240 Ibid., para. 42.

241 Ibid., para. 43.

242 Ibid.

243 Ibid., paras. 43–7.

244 Ibid.

245 Somalia: Continuation of War by Other Means?, Report No. 88, International Crisis Group/Crisis Group Africa, 2004, p. 7.

246 Report of the Panel of Experts on Somalia Pursuant to Security Council Resolution 1425 (2002), S/2003/223, para. 48; it should be noted that Munye denies any connection to arms dealing.

247 ‘Israeli, American indicted for gun running to Somalia’, 28 June 2010, www.politico.com.

248 ‘Inside Intel: a man, a plan, a near kidnapping, Panama’, Haaretz, 15 July 2010.

249 Indictment in the matter of United States of America v. Joseph O’Toole and Chanoch Miller, United States District Court, Southern District of Florida, Case No: CR-COHN, 17 June 2010.

250 Ibid.

251 Ibid.

252 Ibid.

253 Ibid.

254 Judgment in a Criminal Case, USA v. Joseph O’Toole, United States District Court: Fort Lauderdale, Case No. 0:10CR60177-COHN-1, 14 December 2010.

255 Judgment in a Criminal Case, USA v. Chanoch Miller, United States District Court: Fort Lauderdale, Case No. 0:10CR60177-COHN-1, 14 December 2010.

256 R. De Wijk, ‘The New Piracy: The Global Context’, Survival, Vol. 52, No. 1, February–March 2010, p. 40.

257 Ibid., pp. 40–42.

258 Ibid.

259 ‘Somali pirates living the high life’, BBC News, 28 October 2008.

260 ‘Somali pirates capture Ukrainian cargo ship loaded with military hardware’, Guardian, 27 September 2008.

261 ‘Somali pirates “free arms ship”’, BBC News, 5 February 2009.

262 Ibid.

263 Anderson, ‘The New Piracy: The Local Context’.

264 De Wijk, ‘The New Piracy: The Global Context’, p. 42.

265 Ibid.

266 ‘Somali pirates living the high life’, BBC News, 28 October 2008.

267 See ‘Al-Shabaab’, US Counter-Terrorism Calendar 2010, www.nctc.gov/site/groups/al_shabaab.html, and ‘Al-Shabaab: Backgrounder’, Council on Foreign Relations, 28 July 2010, www.cfr.org.

268 Human Rights Watch, Harsh War, Harsh Peace: Abuses by al-Shabaab, the Transitional Federal Government and ANISOM in Somalia, 2010, p. 2.

269 ‘Somalia’s Al Shabaab rebels push towards palace’, Reuters, 25 August 2010.

270 ‘Letter from Somalia’, The New Yorker, 14 December 2009.

271 ‘UN Report: Eritrea delivering arms to Al-Shabaab to overthrow government in Puntland’, Associated Press, 19 August 2010.

272 Ibid.

273 ‘Who are Al-Shabaab?’, The New Vision (Uganda), 17 July 2010.

274 See Human Rights Watch, Harsh War, Harsh Peace, pp. 27–32.

275 Ibid., p. 17.

276 Ibid., pp. 17–18.

277 Ibid.

278 ‘MI5 chief warns of terror threat from Britons trained in Somalia’, Guardian, 17 September 2010.

279 Ibid.

280 ‘Somalia: famine, Al-Shabaab complicate U.S. food delivery in face of severe malnutrition’, Huffington Post, 21 July 2011.

281 The official, who asked to remain anonymous, was interviewed in early 2010 in Washington DC.

282 For an excellent study of identity politics and the contests over resources in modern Sudan and Darfur, see A. De Waal and J. Flint, Darfur: A New History of a Long War (London: Zed Books, 2008).

283 Ibid.

284 J. Flint, Beyond ‘Janjaweed’: Understanding the Militias of Darfur (Geneva: Small Arms Survey, 2009), pp. 11–12.

285 A. Vines, ‘Counter-Insurgency on the Cheap’, Review of African Political Economy, Vol. 31 (2004), No. 2, p. 720.

286 I. Gambari, Situation in Sudan. Report presented at the United Nations Association of the United States of America Model United Nations Conference, New York, 2005. Available for download from www.un.org.

287 Human Rights Watch, Sudan, Oil and Human Rights, 2003..

288 ‘Aid groups warn of Sudan civil war risk’, BBC News, 7 January 2010.

289 ‘Millions dead in Sudan civil war’, BBC News, 11 December 1998; and ‘Sudan: Nearly 2 Million Dead as a Result of the World’s Longest Running Civil War’, US Committee for Refugees, 2001.

290 ‘Background Note: Sudan’, Bureau of African Affairs: US Department of State, 29 June 2010, www.state.gov.

291 Flint, Beyond ‘Janjaweed’, p. 16.

292 Ibid.

293 Gambari, Situation in Sudan, pp. 3–4 (see n. 286 above). This is obviously a simplified account of complex ethnic and identity constructs.

294 Ibid.

295 Vines, ‘Counter-Insurgency on the Cheap’, pp. 720–21.

296 Ibid.

297 De Waal and Flint, Darfur, p. 47.

298 Ibid., p. 50.

299 Ibid., pp. 50–52.

300 T. Dagne and B. Everett, Sudan: The Darfur Crisis and the Status of North–South Negotiations, Report prepared for the US Congress by the Congressional Research Service/Library of Congress, 2004, p. 2.

301 P. Wezeman, ‘Case Study: Darfur, Sudan, 2004–2006’, in United Nations Arms Embargoes, pp. 2–3.

302 Ibid., pp. 3–4.

303 Flint, Beyond ‘Janjaweed’, pp. 18–19.

304 Dagne and Everett, Sudan, pp. 2–3. Note that Janjaweed is also variably spelt Janjawid and Janjawiid.

305 Gambari, Situation in Sudan, pp. 4–5 (see n. 286 above).

306 ‘Q & A: Sudan’s Darfur conflict’, BBC News, 23 February 2010.

307 Ibid.

308 Ibid.

309 Human Rights First, Investing in Tragedy: China’s Money, Arms and Politics in Sudan, March 2008, pp. 3–5, www.humanrightsfirst.org.

310 Ibid.

311 Ibid.

312 Ibid., p. 13.

313 Ibid., pp. 3–13.

314 Human Rights First, Investing in Tragedy, p. ii (see n. 309 above).

315 ‘A Deadly Love Triangle’, Weekly Standard, 6 August 2008, and ‘The Islamic Republic of Sudan?’, Foreign Policy, 10 June 2010.

316 ‘A Deadly Love Triangle’, Weekly Standard, 6 August 2008.

317 Human Rights First, ‘Arms Sales to Sudan’, www.stoparmstosudan.org.

318 ‘Sudan, Iran sign military cooperation agreement’, Sudan Tribune, 8 March 2008.

319 ‘The Islamic Republic of Sudan?’, Foreign Policy, 10 June 2010.

320 Ibid.

321 ‘Iran President hails “strategic ties” with Sudan’, Sudan Tribune, 16 September 2010.

322 Information generated via the SIPRI Customizable Arms Trade Database: http://armstrade.sipri.org.

323 Ibid.

324 Amnesty International, Blood at the Crossroads: Making the Case for a Global Arms Trade Treaty, ACT 30/011/2008, September 2008, pp. 88–9 . See also Wezeman, ‘Case Study: Darfur, Sudan, 2004–2006’.

325 Amnesty International, Blood at the Crossroads, pp. 88–9.

326 Ibid.

327 Ibid., p. 94.

328 Ibid., pp. 94–5.

329 Ibid.

330 See, for example, Report of the Panel of Experts Established Pursuant to Resolution 1591 (2005) Concerning Sudan, UN Security Council, S/2009/562, 29 October 2009, p. 32–52.

331 Human Rights First, Investing in Tragedy, pp. 3–5.

332 Ibid.

333 Report of the Panel of Experts Established Pursuant to Resolution 1591 (2005) Concerning Sudan, UN Security Council, S/2009/562, 29 October 2009, p. 3.

334 ‘Genocide too’, The Economist, 13 July 2010; ‘African nations divided over Bashir genocide charge’, Reuters, 25 July 2010; and ‘Sudanese President Bashir faces fresh genocide charges’, AFP/France24, 13 July 2010.

335 ‘Court worry at Omar al-Bashir’s Kenya trip’, BBC News, 28 August 2010.

336 ‘Over 99 percent of South Sudan vote to separate’, Mail & Guardian, 30 January 2011.

337 ‘Tunisia suicide protestor Mohammed Bouazizi dies’, BBC News, 5 January 2011.

338 ‘Tunisia: President Zine al-Abidine Bel Ali forced out’, BBC News, 15 January 2011.

339 ‘Egypt protests: three killed in day of revolt’, BBC News, 26 January 2011.

340 ‘Egypt’s Last Pharaoh? The Rise and Fall of Hosni Mubarak’, Time, 12 February 2011.

341 Ibid.

342 A. Shatz, ‘Mubarak’s Last Breath’, London Review of Books, Vol. 32, No. 10, 1 May 2010.

343 R. Bush, ‘Politics, Power and Poverty: Twenty Years of Agricultural Reform and Market Liberalisation in Egypt’, Third World Quarterly, Vol. 28 (2007), No. 8, p. 1601.

344 Shatz, ‘Mubarak’s Last Breath’.

345 Bush, ‘Politics, Power and Poverty’.

346 Ibid.

347 Shatz, ‘Mubarak’s Last Breath’.

348 Ibid.

349 ‘Where’s Hosni Mubarak’s money? Ask front man Hussein Salem’, ABC News Radio, 2 March 2011.

350 Ibid.

351 ‘Hussein Salem caught in Dubai with $500m’, Globes, 31 January 2011.

352 ‘Hosni Mubarak detained over corruption allegations’, Guardian, 13 April 2010.

353 ‘Egypt asks Interpol to arrest businessman Hussein Salem’, Egypt News, 22 March 2010; ‘Fate of the ousted president inches further along’, Ahram Online, 24 May 2011, http://english.ahram.org.eg/NewsContent/1/64/12862/Egypt/Politics-/Fate-of-the-ousted-president-inches-further-along.aspx.

354 ‘Egypt’s arms industry depends on U.S.’, Aol News, 15 February 2011.

355 J. Sharp, Egypt: The January 25 Revolution and Implications for U.S. Foreign Policy, Congressional Research Service, RL33003, 2011, www.crs.gov.

356 Ibid.

357 Ibid.

358 Ibid., p. 24.

359 Ibid.

360 SIPRI Military Expenditure Database, www.sipri.org.

361 SIPRI Arms Transfer Database, www.sipri.org/contents/armstrad/output_types_tiv.html.

362 Ibid.

363 Ibid.

364 Ibid.

365 Ibid.

366 P. Chatterjee, ‘Egypt’s military-industrial complex’, Guardian, 4 February 2011.

367 Ibid.

368 Ibid.

369 ‘Egyptian police using U.S.-made tear gas against demonstrators’, ABC News, 28 January 2011.

370 Chatterjee, ‘Egypt’s military-industrial complex’, Guardian, 4 February 2011.

371 ‘Egypt protest pictures highlight the arms trade’s unintended consequences’, 29 January 2011, www.warisbusiness.com.

372 ‘Controversial tear gas canisters made in the USA’, CNN, 28 January 2011.

373 ‘Arms export deals: MPs criticise UK’s stance’, BBC News, 5 April 2011.

374 ‘David Cameron visits Egypt with arms industry group to help civilian “Transition”’, Scotsman, 22 February 2011.

375 Ibid.

376 ‘Cameron attacked for Egypt visit with defence sales team in tow’, Independent, 22 February 2011.

377 ‘Qaddafi forces fire cluster bombs into civilian areas’ The New York Times, 15 April, 2011; and ‘Nato must send in troops to save Misrata, say rebels’, Guardian, 16 April 2011.

378 ‘Rebels overrun Gaddafi compound’, BBC News Africa, 23 August 2011.

379 ‘Qaddafi’s Great Arms Bazaar’, Foreign Policy, 8 April 2011.

380 ‘McCain: The War isn’t Over until We Secure Qaddafi’s 10 Tons of Mustard Gas’, Business Insider, 23 August 2011.

381 ‘After the fall, U.S. concerned about Libya weapons’, Reuters, 22 August 2011.

382 M. Eljahmi, ‘Libya and the US: Gaddafi unrepentant’, Middle East Quarterly, 2006 (Winter), pp. 11–14.

383 Human Rights Watch, Libya: Words to Deeds, 24 January 2006, www.hrw.org/en/node/11480/section/11.

384 ‘Sudan’s shadowy Arab militia’, BBC News, 10 April 2004.

385 A. Cordesman, A Tragedy of Arms: Military and Security Developments in the Mahgreb (Westport: Praeger, 2002), p. 206.

386 According to the SIPRI Arms Trade Database, www.sipri.org.

387 Ibid.

388 Ibid.

389 Cordesman, Tragedy of Arms, p. 208.

390 Ibid.

391 A. Cordesman and A. Nerguizian, The North African Military Balance: Force Developments and Regional Changes, Center for Strategic & International Studies (CSIS), 2010, p. 34, www.csis.org.

392 Cordesman, Tragedy of Arms, pp. 185–6.

393 Ibid.

394 Ibid.

395 According to the SIPRI Arms Trade Database, www.sipri.org.

396 W. Kegö, A. Molcean and G. Nizhikau, ‘Belarus Arms Trade’, Policy Brief No. 60, Institute for Security & Development Policy, 14 March 2011.

397 ‘Belarus Defence Industry’, Global Security, 2005, www.globalsecurity.org; ‘Lukashenko: the dictator in the dock’, Independent, 9 March 2011; and ‘Libyan cash finds use in Belarusian arms’, RT, 1 March 2011, http://rt.com/news/cash-arms-gaddafi-belarus/.

398 ‘The Tyrant of Belarus: Gaddafi’s Friend Far, Far to the North?’, Time, 2 March 2011.

399 R. Takeyh, ‘The Rogue Who Came in from the Cold’, Foreign Affairs, Vol. 80 (2001), No. 3, p. 64.

400 Ibid.

401 Ibid., p. 66.

402 SIPRI, Arms Embargo Database, ‘EU arms embargo on Libya’, www.sipri.org.

403 ‘EU lifts weapons embargo on Libya’, BBC News, 11 October 2004.

404 ‘Lockerbie bomber Megrahi living in luxury villa six months after being at death’s door’, Daily Telegraph, 20 February 2010.

405 ‘Secret letters reveal Labour’s Libyan deal’, Sunday Times, 30 August 2009.

406 Transcript obtained by CAAT in FOI request.

407 ‘Political help behind Libya’s arms trade, says official’, The Times, 5 September 2009.

408 ‘Libya, Russia agree $1.8bn arms deal: Putin’, Reuters, 30 January 2010.

409 Ibid.

410 ‘EU arms exports to Libya: who armed Libya?’, dataset spreadsheet downloaded from www.guardian.co.uk. Author’s own calculations.

411 Ibid.

412 ‘Libyan Arms Deals Come Back to Haunt Europe’, Der Spiegel Online, 24 February 2011.

413 ‘EU arms exports to Libya’ (see n. 410 above).

414 ‘BAE Systems to share £200 million arms deal with Libya’, Daily Mail, 3 August 2007, http://www.dailymail.co.uk/news/article-472958/BAE-Systems-share-200-million-arms-deal-Libya.html#ixzz1JXPeQYEQ.

415 ‘Libyan rebels receiving anti-tank weapons from Qatar’, Guardian, 14 April 2011, http://www.guardian.co.uk/world/2011/apr/14/libya-rebels-weapons-qatar.

416 ‘Libyan Arms Deals Come Back to Haunt Europe’, Der Spiegel Online, 24 February 2011.

417 ‘EU arms exports to Libya’ (see n. 410 above).

418 ‘SA sold R70m in arms to Libya’, The Times (South Africa), 10 April 2011.

419 ‘Libya army transport deal frozen after US approval’, Daily Herald, 12 March 2011, http://www.dailyherald.com/article/20110312/news/703129979/#ixzz1LDMvusfR; and ‘Uprising puts an abrupt end to recent surge in U.S. military exports to Libya’, WorldTribune.com, 8 March 2011, http://www.worldtribune.com/worldtribune/WTARC/2011/ss_military0247_03_08.asp.

420 ‘Ivory Coast: Laurent Gbagbo captured by French Special Forces, rival claims’, Daily Telegraph, 11 April 2011.

421 B. Klaas, ‘From Miracle to Nightmare: An Institutional Analysis of Development Failures in Côte d’Ivoire’, Africa Today, Vol. 55 (2008), No. 1.

422 Ibid., p. 113.

423 Ibid.

424 Ibid., p. 114.

425 D. Balint-Kurti, ‘Ready for Peace, Ready for War’, The World Today, Vol. 63, No. 5, May 2007, p. 25.

426 Ibid.

427 Ibid.

428 ‘Robert Gué ï: deposed ruler’, BBC News, 20 October 2000; and A. Vines, ‘Peace on a Precipice’, The World Today, Vol. 61, No. 1, January 2005, p. 23.

429 Vines, ‘Peace on a Precipice’, The World Today, Vol. 61, No. 1, January 2005, p. 23.

430 ‘Ivory Coast: Gbagbo held after assault on residence’, BBC News Africa, 11 April 2011.

431 Balint-Kurti, ‘Ready for Peace, Ready for War’, p. 25.

432 Ibid.

433 Vines, ‘Peace on a Precipice’, p. 23.

434 See Human Rights Watch, Côte d’Ivoire: The Human Rights Cost of the Political Impasse, 21 December 2005, www.hrw.org.

435 ‘Refugees fleeing Côte d’Ivoire tell their stories’, UN World Food Programme News, 5 April 2011, www.wfp.org.

436 See Global Witness, Hot Chocolate: How Cocoa Fuelled the Conflict in Côte d’Ivoire, www.globalwitness.org.

437 See Global Witness, Making It Work, 2005, pp. 8–15, www.globalwitness.org.

438 UN Security Council Resolution 1572, November 2004, available from www.sipri.org.

439 Report of the Chairman of the Security Council Committee Established Pursuant to Resolution 1572 (2004) Concerning Côte d’Ivoire on His Mission to Côte d’Ivoire, S/2005/790, para. 68, www.un.org.

440 Amnesty International, Blood at the Crossroads, pp. 28–32.

441 Report of the Group of Experts Submitted Pursuant to Paragraph 7 of the Security Council Resolution 1584 (2005) Concerning Côte d’Ivoire,S/2005/699, 2005, para. 11.

442 Amnesty International, Blood at the Crossroads, pp. 28–32.

443 Ibid.

444 Report of the Group of Experts Submitted Pursuant to Paragraph 7 of the Security Council Resolution 1584 (2005) Concerning Côte d’Ivoire,S/2005/699, 2005, paras. 85–6.

445 ‘UN investigates Zimbabwe–Ivory Coast arms trade claims’, Guardian, 4 March 2011.

446 Ibid.

447 ‘Belarus breaks Ivory Coast arms embargo – UN chief’, BBC News, 28 February 2011.

Section VI: End Game

20. Bringing Peace to the World

    1 A. Sampson, The Arms Bazaar in the Nineties: From Krupp to Saddam (Dunton Green: Coronet, 2008).

    2 ‘Khashoggi’s Fall: A Crash in the Limo Lane’, Vanity Fair, September 1989.

    3 Ibid.; and ‘Swiss extradite Khashoggi to US’, The New York Times, 20 July 1989.

    4 Seymour Hersh, ‘Lunch with the Chairman’, The New Yorker, 17 March 2003.

    5 Securities and Exchange Commission v. Ramy Y. El-Batrawi, GenesisIntermedia, Inc., Ultimate Holdings, Ltd., Adnan M. Khashoggi, Richard J. Evangelista, Wayne Breedon, and Douglas E. Jacobson, Civil Action No. CV-06-2247 (MRP) (C.D. Ca.), Targeted News Service, 2 April 2010; and ‘Saudi financier Adnan Khashoggi settles SEC lawsuit’, Bloomberg, 31 March 2010.

    6 Quoted in ‘Khashoggi’s Fall’, Vanity Fair, September 1989.

    7 Hersh, ‘Lunch with the Chairman’, The New Yorker, 17 March 2003.

    8 ‘An arms dealer returns, now selling an image’, The New York Times, 14 November 2009.

    9 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

  10 Patrick Radden Keefe, ‘The Trafficker’, The New Yorker, 8 February 2010.

  11 This account of the operation is drawn from ibid., and other sources.

  12 Ibid.

  13 Quoted in ibid.

  14 ‘Child sex abuse guilt’, Herald Sun, 21 November 2006.

  15 ‘Slovenia to ask Australia for extradition of Nicholas Oman’, Slovenian Press Agency, 23 November 2006.

  16 Guardian, 5 and 9 August 2010. It was established that Campbell had handed the diamonds over to the chief executive at the time of the Mandela Children’s Foundation, who still had them in his possession at the time of the trial.

  17 ‘The televangelist and the warlord’, The Nation, 11 August 2010.

  18 ‘Prosecutors hint Russian suspect sought arms deal in Libya as judge clears path for trial’, Washington Post, 2 August 2011, http://www.washingtonpost.com/politics/courts-law/prosecutors-hint-russian-suspect-sought-arms-deal-in-libya-as-judge-clears-path-for-trial/2011/08/02/gIQAOxHypI_story.html.

  19 Some of these ideas were developed in conversation with Peter Danssaert, but the final opinions expressed are mine alone.

  20 ‘Mensdorff-Pouilly paid £372,000 compensation by UK for imprisonment’, Croatian Times, 27 May 2011, http://www.croatiantimes.com/news/Around_the_World/2011-05-27/19592/Undie_Payments; ‘Mensdorff wins £400,000 in damages from UK taxpayer’, Daily Telegraph, 27 May 2011, http://www.telegraph.co.uk/news/uknews/law-and-order/8542570/Austrian-count-who-complained-over-prison-underpants-wins-damages-sayslawyer.html.

  21 Bill Lehane, ‘U.S. help sought in Gripen probe’, Prague Post, 18 August 2010, http://www.praguepost.com/news/5432-u-s-help-sought-in-gripen-probe.html.

  22 ‘Czech corruption busting promise tested’, Wall Street Journal, 12 November 2010.

  23 Based on conversations with sources close to all these investigations.

  24 ‘Proposed Charging Letter re: Investigation of BAE Systems plc Regarding Violations of the Arms Export Control Act and the International Traffic in Arms Regulations’, May 2011, available from www.pmddtc.state.gov/compliance/consent_agreements/baes.html.

  25 Ibid.

  26 Ibid.

  27 Ibid.

  28 Ibid.

  29 Ibid.

  30 Ibid.

  31 ‘Statement of Offence’ in the matter of the United States of America v. BAE Systems plc, Violation: Title 18, United States Code, Section 371 (conspiracy), United States District Court for the District of Columbia, paras. 18–29.

  32 Ibid.

  33 US Department of State Bureau of Political-Military Affairs, 17 May 2011, ‘Proposed Charging Letter’, http://www.pmddtc.state.gov/compliance/consent_agreements/pdf/BAES_PCL.pdf.

  34 ‘Chrimial [sic] charges filed against defense firm Saab’, The Swedish Wire, 9 September 2010,. The book is N. Resare, Bribery, Power and Aid – Jas and the South Africa Affair (Stockholm: Natur & Kultur, 2010).

  35 Numerous press articles following the publication of the information referred to the payments baldly as bribes. See, for example, ‘Saab admits bribes paid in SA arms deal’, News24/SAPA, 6 June 2011, www.news24.co.za. Downloaded 6 June 2011.

  36 ‘Ferrostaal: Final Report, Compliance Investigation’, Devoise & Plimpton LLP, 13 April 2011, pp. 58–67.

  37 ‘Submarine cash revealed’, Kathimerini, 12 April 2010, http://archive.ekathimerini.com/4dcgi/_w_articles_politics_0_12April2010_116293.

  38 C. Rhodes, ‘The submarine deals that helped sink Greece’, Wall Street Journal, 10 July 2010; ‘Probe into German–Greek arms deals reveals murky side of defence sales’, 12 August 2010, http:www.defense-aerospace.com; and J. Schmitt, ‘How German Companies Bribed Their Way to Greek Deals’, Der Spiegel, 11 May 2010, http://www.spiegel.de/international/europe/0,1518,693973,00.html.

  39 ‘Algarve businessman embroiled in international scandal’, Algarve Resident, 9 April 2010, http://www.algarveresident.com/story.asp?XID=35767.

  40 J. Schmitt, ‘Germany’s Ferrostaal Suspected of Organizing Bribes for Other Firms’, Der Spiegel, 30 March 2010,http://www.spiegel.de/international/business/0,1518,686513,00.html.

  41 Ibid.

  42 ‘Submarine scandal continues’, Algarve Resident, 29 April 2010, http://www.algarveresident.com/story.asp?ID=36752.

  43 A. Khalip and A. Palment, ‘Portugal accuses 10 of fraud in submarines case’, Reuters, 2 October 2009, http://www.reuters.com/article/2009/10/02/portugal-submarines-idUSL257190620091002.

  44 ‘Taiwan wins arms suit’, Straits Times, 5 May 2010. (DCNS was called DCN prior to 2007.)

  45 ‘Defence scandals: Taiwan wins, Malaysia waits’, Malaysian Mirror, 6 May 2010.

  46 DCNS, ‘Second Scorpene SSK arrives in Malaysia’, Defence Talk, 13 July 2010, http://www.defencetalk.com/second-scorpene-ssk-arrives-in-malaysia-27458/; and S. M. Kamal, ‘Government says spent RM6.7bn on Scorpene submarines’, Malaysia Insider, 22 June 2010, http://www.themalaysianinsider.com/malaysia/article/government-says-spent-rm6.7b-on-scorpene-submarines/.

  47 J Manthorpe, ‘The prime minister, the private investigator, the murder of a Mongolian model, and 114 million euros’, Vancouver Sun, 15 November 2010; J. Manthorpe, ‘Ghost of Mongolian model continues to haunt Malaysian Government’, Vancouver Sun, 5 July 2010; and A. Miller, ‘Casualties of warfare’, Southeast Asia Globe, 7 July 2010.

  48 ‘Malaysia’s submarine deal surfaces in France’, Asia Sentinel, 16 April 2010, http://www.asiasentinel.com/index.php?option=com_content&task=view&id=2406&Itemid=178.

  49 Manthorpe, ‘The prime minister, the private investigator’, Vancouver Sun, 15 November 2010; Manthorpe ‘Ghost of Mongolian model’, Vancouver Sun, 5 July 2010; and Miller, ‘Casualties of warfare’, Southeast Asia Globe, 7 July 2010.

  50 ‘Saudi Prince Bandar, Standing and Role’, Tactical Report, 29 September 2010.

  51 ‘Bandar lawsuit dismissed, appealed’, Aspen Daily News, 22 January 2009, http://www.aspendailynews.com/section/home/131860.

  52 ‘UK training Saudi forces used to crush Arab spring’, Guardian, 28 May 2011, www.guardian.co.uk/world/2011/may/28/uk-training-saudi-troops.

  53 ‘Bandar’s Return’, Foreign Policy, 22 April 2011, http://shadow.foreignpolicy.com/posts/2011/04/22/bandars_return.

  54 ‘Saudi Arabia uses UK-made armoured vehicles in Bahrain crackdown on democracy protesters’, CAAT press release, 16 March 2011, http://www.caat.org.uk/press/archive.php?url=20110316prs; ‘UK government challenged over failure to revoke arms exports to Saudi Arabia’, CAAT press release, 24 June 2011, http://www.caat.org.uk/press/archive.php?url=20110624prs.

  55 ‘Freed mercenary calls for Mark Thatcher to “face justice”’, Independent, 4 November 2009.

  56 SIPRI Yearbook 2010 (Oxford: OUP, 2010).

  57 AADB Communication, http://www.frc.org.uk/aadb/press/pub2407.html.

  58 ‘SFO probes EADS defence contract with Saudi Arabia’, Daily Telegraph, 29 May 2011, http://www.telegraph.co.uk/finance/financial-crime/8545282/SFO-probes-EADS-defence-contract-with-Saudi-Arabia.html.

  59 ‘Exports warning as bribery law is delayed’, Financial Times, 31 January 2011.

  60 ‘Kenneth Clarke denies weakening new anti-bribery law’, Guardian, 30 March 2011, http://www.guardian.co.uk/law/2011/mar/30/clarke-denies-weakening-bribery-law?CMP=twt_gu.

  61 ‘Corruption Perception Index 2010 Results’, Transparency International, 26 October 2010, http://transparency.org/policy_research/surveys_indices/cpi/2010/results.

  62 ‘Ex-BAE chairman is recruited by Kazakhstan’, Guardian, 4 December 2006.

  63 ‘Corruption Perception Index 2010 Results’, Transparency International, 26 October 2010, http://transparency.org/policy_research/surveys_indices/cpi/2010/results.

  64 Daily Telegraph, 10 June 2010.

  65 BAE Systems news release, 1 September 2008, http://www.baesystems.com/Newsroom/NewsReleases/autoGen_10881105125.html#Before.

  66 Gleaned from a response to a question at the BAE AGM, May 2011.

  67 Mike Koehler, ‘Is BAE’s monitor independent?’, ‘FCPA Professor’, Corporate Compliance Insights, 2 September 2010.

  68 www.carlyle.com, various.

  69 Greenberg Quinlan Rosner Research, UK Post-Election Frequency Questionnaire, 7–9 May 2010, http://www.greenbergresearch.com/articles/2445/5674_ukeu050910fq.uk.pdf.

  70 ‘Tony Blair: “I’m basically a public service guy”’, Daily Telegraph, 6 September 2010.

  71 ‘Lectures see Tony Blair earnings jump over £12m’, The Times, 29 October 2008.

  72 ‘Tony Blair to boost earnings as paid speaker for Mayfair hedge fund’, Guardian, 25 January 2010.

  73 ‘Tony Blair: “I’m basically a public service guy”’, Daily Telegraph, 6 September 2010.

  74 ‘Tony Blair’s new “bank” for super-rich’, The Australian, 22 August 2010.

  75 Ibid.

  76 ‘BAE Systems hires Britain’s former envoy to Saudi Arabia’, Guardian, 8 February 2011.

  77 Washington Post, 16 July 2004.

  78 ‘DOJ notables crowd courtroom as FCPA sting trial begins’, Main Justice, 18 May 2011, http://www.mainjustice.com/2011/05/18/doj-notables-crowd-courtroom-as-fcpa-sting-trial-begins/.

  79 ‘The Chamber of Commerce, the FCPA and Rupert Murdoch’, Main Justice, 14 July 2011, www.mainjustice.com/justanticorruption/2011/07/14/the-chamber-of-commerce-the-fcpa-and-rupert-murdoch/.

  80 ‘Blackwater founder moves to Abu Dhabi, records say’, The New York Times, 17 August 2010.

  81 ‘Xe, formerly Blackwater, announces new chief”, CNN, 1 June 2011, http://edition.cnn.com/2011/US/06/01/xe.blackwater.chief/.

  82 ‘Blackwater’s new ethics chief’, Wired.com, 4 May 2011, www.wired.com/dangerroom/2011/05/blackwaters-new-ethics-chief-john-ashcroft/.

  83 ‘Ashcroft finds private-sector niche’, Washington Post, 12 August, 2006.

  84 Loren Thompson, ‘How Boeing Won the Tanker War’, Forbes, 28 February 2011, http://blogs.forbes.com/beltway/2011/02/28/how-boeing-won-the-tanker-war/.

  85 ‘US–Saudi arms plan grows to record size’, Wall Street Journal, 14 August 2010; ‘US confirms $60bn plan to sell Saudi Arabia arms’, BBC News, 20 October 2010, http://www.bbc.co.uk/news/world-us-canada-11587348.

  86 ‘US to sell $60bn in advanced arms to Saudi Arabia’, Daily Telegraph, 20 October 2010.

  87 This figure only includes DOD-brokered deals, so privately negotiated deals would be in addition to this figure. ‘Proposed US arms sales reach new heights’, Arms Control Today, March 2011, www.armscontrol.org/act/2011_03/US_Arms_Sales.

  88 ‘Boeing may earn $24 billion from Saudi aircraft and helicopter orders’, Defpro.daily, 21 October 2010, http://defpro.com/daily/details/676/; ‘US signs $60bn Saudi arms deal as Iran’s influence grows’, Belfast Telegraph, 22 October 2010. See also news releases dated 20 October 2010 from http://www.dsca.mil/sc_news/archive-2010.htm#November.

  89 ‘ $60 billion arms sale to Saudi Arabia a needed boost for defence firms’, The Hill, 24 October 2010.

  90 Project on Government Oversight, ‘Despite getting ripped off, army rallies to defense of Boeing’, 7 July 2011, pogoblog.typepad.com/pogo/2011/07/despite-getting-ripped-off-army-rallies-to-defense-of-boeing.html.

  91 Ibid.

  92 ‘US signs $60bn Saudi arms deal as Iran’s influence grows’, Belfast Telegraph, 22 October 2010.

  93 ‘US Congress notified over $60bn arms sale to Saudi Arabia’, Guardian, 21 October 2010.

  94 ‘Barack Obama throws full US support behind Middle East uprisings’, Guardian, 20 May 2011.

  95 ‘In Saudi Arabia royal funds buy peace for now’, The New York Times, 8 June 2011.

  96 ‘Why Mitch McConnell is worse than Charles Rangel’, Salon.com, 16 November 2010.

  97 ‘I’d definitely defend Mugabe at the Hague – Charles Taylor’s lawyer’, Sunday Telegraph, 26 September 2010.

  98 See Chapters 9 and 19 for Bredenkamp’s denial of the allegations made against him.

  99 ‘The memo that sank the arms probe’, Mail & Guardian, 3 June 2011.

100 ‘France ex-minister Pasqua acquitted over Angola arms’, BBC News, 24 April 2011.

101 ‘Op-ed: Charles Pasqua, the politician no one dares to send to jail’, Digital Journal, 24 July 2010.

102 ‘Angolagate: Pasqua acquitted on appeal’, AFP, 24 April 2011.

103 Ibid.

104 ‘French ex-minister acquitted in “Angolagate” trial’, SAPA/Business Report, 29 April 2011.

105 Ibid.

106 ‘Head of State, Pierre Falcone discusses Angolagate outcome’, Angola Press, 18 May 2011.

107 This account is drawn from ‘Sarkozy urged to testify to inquiry into Pakistan arms sale kickbacks’, Guardian, 18 November 2010; ‘Pakistan, Chirac a bien bloqué les com’ des intermédiaires balladuriens’, Bakchich, 19 June 2009; and French source.

108 Ibid.

109 Ibid.

110 Ibid.

111 ‘UK hails “new epoch” in relations with regime accused of war crimes’, Independent, 1 October 2010.

112 Information provided by Tanzanian investigative journalist, Erick Kabendera, November 2010.

113 ‘BAE criticised by UK MPs over Tanzania corruption’, BBC News, 19 July 2011, http://www.bbc.co.uk/news/world-africa-14204115; Uncorrected Transcript of Oral Evidence, 19 July 2011, International Development Committee, HC 847-i, http://www.publications.parliament.uk/pa/cm201012/cmselect/cmintdev/uc847-i/uc84701.htm.

114 ‘Experts fear looted Libyan arms may find way to terrorists’, The New York Times, 3 March 2011; ‘Antiaircraft missiles on the loose in Libya’, The New York Times, 14 July 2011.

115 Jeffrey Sachs, ‘The Horn of Africa crisis is a warning to the world’, Guardian, 28 July 2011, www.guardian.co.uk/global-development/poverty-matters/2011/jul/28/horn-africa-drought-warning.

116 Ardian Klosi, The Gerdec Disaster: Its Causes, Culprits and Victims (Tirana: K&B, 2010).

117 Guy Lawson, ‘Arms and the Dudes’, Rolling Stone, 31 March 2011.

118 ‘Armed again’, Miami New Times, 5 February 2009.

119 ‘Arms dealer faces new charges’, The New York Times, 23 August 2010.

120 ‘Enfant terrible of arms dealing in prison after sting operation’, Independent, 25 August 2010.

121 Project on Government Oversight, ‘“Stoner arms dealer” gets 14-year ban from federal contracting’, 2 June 2011, http://pogoblog.typepad.com/pogo/2011/06/stoner-arms-dealer-gets-14-year-ban-from-federal-contracting.html.

122 Lawson, ‘Arms and the Dudes’.

123 ‘Munitions supplier sentenced on defense procurement fraud and lying to Army on government munitions contract’, press release, United States Attorney’s Office, Southern District of Florida, 23 March 2011.

21. Future Imperfect

    1 If one considers all spending related to defence and national security, the US alone spends over a trillion dollars a year, with the rest of the world spending about the same again. See N. Turse (ed.), The Case for Withdrawal from Afghanistan (London: Verso, 2010).

    2 For the initial, minimal effects of the global crisis on defence spending, see ‘Report: Global military spending so far unaffected by economic downturn but expected to slow’, San Francisco Examiner, 30 March 2010, and the SIPRI Yearbook 2010 (Oxford: OUP, 2010), especially the Introduction to Chapter 5. While general state spending in the US is anticipated to increase by a meagre 3 per cent in 2010/11, defence spending is expected to rise by 4.2 per cent according to ‘Obama’s 2011 Budget’, Guardian Data Blog. In the UK spending will be cut by 14 per cent, while defence spending will be cut by 8 per cent: ‘Spending Review 2010: Q&A’, Daily Telegraph, 20 October 2010. France will cut overall public spending by 5 per cent in 2011 and 10 per cent in 2011–13, while defence spending will fall by less than 4 per cent: ‘French premier outlines spending cuts’, Wall Street Journal, 6 May 2010, and ‘France to slash defense spending’, Defense News, 1 July 2010. In Germany defence spending will be cut by 3 per cent while overall spending will be cut by 3.8 per cent: ‘Changes coming as Bundeswehr faces budget cuts’, Defense News, 27 May 2010.

    3 See, for example, M. Glenny, McMafia, (London: The Bodley Head, 2008), and http://www.fbi.gov/about-us/investigate/organizedcrime.

    4 Interview with Joe der Hovsepian, Amman, Jordan, 14 May 2010.

    5 Ibid.

    6 Statistics on Chinese defence activities are hard to come by, but the country reports that it spent $100bn on its military in 2009, which experts believe is a significant underestimate (Chinese Ministry of Finance, Report on the Implementation of the Central and Local Budgets for 2008 and on the Draft Central and Local Budgets for 2009, 5 March 2009). SIPRI estimates that China’s military expenditure in 2010 was $119bn (SIPRI Military Expenditure Database, http://www.sipri.org/research/armaments/milex/resultoutput/milex_15). Its arms exports between 2005 and 2010 are calculated at $4.338bn (constant 1990 US dollars), making it the world’s seventh-largest exporter, but again this is likely to be an underestimate (SIPRI Arms Transfers Database, 2010 figure, http://armstrade.sipri.org/armstrade/html/export_toplist.php).

    7 Richard Bitzinger, ‘The Return of the King: China’s Re-emergence as an Arms Dealer’, Jamestown China Brief, 7 September 2009.

    8 ‘Sri Lanka forces committed war crimes, says UN’, Independent, 17 April 2011.

    9 Jon Lee Anderson, ‘Death of the Tiger: Sri Lanka’s Brutal Victory over Its Tamil Insurgents’, The New Yorker, 17 January 2011. Russia and Pakistan supplied small arms and artillery shells.

  10 M. Gurtov, ‘Swords into Market-Shares: China’s Conversion of Military Industry to Civilian Production’, The China Quarterly, No. 134 (June 1993), p. 216.

  11 See E. Medeiros, R. Cliff, K. Crane and J. Culverson, A New Direction for China’s Defence Industry, RAND Report for Project Air Force, 2005. Available from www.rand.org.

  12 ‘China stealth fighter a “masterpiece” of homegrown technology’, Daily Telegraph, 25 January 2011; and ‘China stealth fighter “copied from parts from downed US jet”’, BBC News, 24 January 2011.

  13 Ibid.

  14 Gary K. Busch, ‘The Chinese Military-Commercial Complex: The Globalisation of the Chinese Military Corporations’, unpublished.

  15 For more detail on the history and current status of the Chinese weapons trade see www.theshadowworld.com.

  16 This summary has been compiled from a conversation with Adam Isaacson at the Washington Office on Latin America, July 2010, and the SIPRI Yearbook 2010.

  17 Sarah Fort, ‘Billions in Aid, with No Accountability’, Center for Public Integrity, 31 May 2007, http://projects.publicintegrity.org/MilitaryAid//report.aspx?aid=877.

  18 For more detail on the history and current status of the arms trade and Pakistan, see www.theshadowworld.com.

  19 ‘India tops weapons purchase table’, BBC News, 31 August 2005, http://news.bbc.co.uk/1/hi/world/south_asia/4200812.stm.

  20 ‘Indian defence deals worth $42 billion up for grabs’, Times of India, 27 February 2011, http://articles.timesofindia.indiatimes.com/2011-02-27/india/28638182_1_indian-defence-defence-deals-defence-ministry.

  21 ‘India takes a NAM-style route on $11bn fighter contract’, Independent, 28 April 2011.

  22 Discussion with Professor James Stewart, former Appeals Counsel, Office of the Prosecutor, International Criminal Tribunal for the former Yugoslavia, and leading academic in the area of corporate responsibility for international crimes.

  23 See A. Feinstein, P. Holden and B. Pace, ‘Corruption and the Arms Trade: Sins of Commission’, in SIPRI Yearbook 2011 (Oxford: Oxford, 2011).

  24 Milton Leitenberg, Deaths in Wars and Conflicts in the 20th Century, Cornell University Peace Studies Program, Occasional Paper #29, 3rd edn, 2006, http://www.google.co.uk/url?sa=t&source=web&cd=6&sqi=2&ved=0CEAQFjAF&url=http%3A%2F%2Fwww.clingendael.nl%2Fpublications%2F2006%2F20060800_cdsp_occ_leitenberg.pdf&rct=j&q=Deaths%20in%20Wars%20and%20Conflicts%20in%20the%2020th%20Century&ei=YH--TePrINKHhQfehMnaBQ&usg=AFQjCNEjijwFGsDhKLoztO2QtsKaRoJhKQ&cad=rja. The study of deaths due to armed violence or conflict is obviously difficult as there are numerous ways of estimating the casualties of war. Leitenberg’s figure attempts to include not only the deaths of soldiers on the battlefield but the known ‘indirect deaths’ suffered largely by civilians due to conflict, though clear information on this number is scant and it is therefore almost always underestimated according to Keith Krause, Robert Muggah and Achim Wennmann, Global Burden of Armed Violence, Geneva Declaration Secretariat, September 2008, http://www.genevadeclaration.org/fileadmin/docs/Global-Burden-of-Armed-Violence-full-report.pdf. On average in recent conflicts the ratio of indirect deaths to direct deaths caused by conflict is conservatively estimated as four to one. The figure also takes into account the millions killed by ‘human decision’, which includes such non-wartime, politically caused deaths as those in the Soviet gulags or in the Chinese ‘rectification campaigns’. It can be argued that the arms trade, in its modern form as described in this book, started in the late nineteenth and early twentieth centuries and has played a role in providing the tools of this destruction.

Afterword to the Picador Edition

    1 ‘World military spending levels out after 13 years of increases, says SIPRI’, SIPRI, 17 April 2012, http://www.sipri.org/media/pressreleases/17-april-2012-world-military-spending-levels-out-after-13-years-of-increases-says-sipri.

    2 Paul Holtom, Mark Bromley, Pieter D. Wezeman and Siemon T Wezeman, ‘Trends in international arms transfers’, SIPRI, March 2012, http://books.sipri.org/product_info?c_product_id=443.

    3 ‘Greek military spending criticized’ Al Jazeera English, 13 May 2010.

    4 ‘Corruption case hits hard in a tough time for Greece’, New York Times, 2 May 2012

    5 Samuel Rubenfeld, ‘Ferrostaal shareholders approve EUR149 million fine in bribery case’, Wall Street Journal, 14 October 2011.

    6 Karin Matussek, ‘Ferrostaal fined $183 million by court at ex-managers’ trial’. Bloomberg, 20 December 2011.

    7 ‘Ferrostaal: Final Report, Compliance Investigation’, Devoise & Plimpton LLP, 13 April 2011. A partial copy of this internal report can be downloaded from http://www.wikigreeks.org/sites/default/files/pdfs/Ferrostal.pdf.

    8 Ibid.

    9 Ibid.

  10 Daniel Msangya, ‘BoT receives more than Sh72bn BAE settlement’, The Citizen, 12 April 2012.

  11 Marc Nkwame, ‘Tanzania: “No local was involved in BAE radar scandal,” says official’, All Africa, 31 March 2012, http://allafrica.com/stories/201204010038.html.

  12 Boris Groendahl, ‘Ex-Bae lobbyist charged with money laundering In Austria’, Bloomberg, 22 June 2012.

  13 Simon Henderson, ‘The prince and the revolution’, Foreign Policy, 24 July 2012.

  14 Steve Coll, Ghost Wars (London: Penguin Books, 2004), p. 399.

  15 Trevor Mostyn, ‘Crown Prince Sultan bin Abdul-Aziz obituary’, Guardian, 23 October 2011.

  16 Angus McDowall, ‘Saudi appoints Prince Salman as crown prince’, Reuters, 18 June 2012.

  17 Frederika Whitehead, ‘Block on SFO Saudi “arms” probe tarnished UK’, Exaro News, 24 April 2012.

  18 Frederika Whitehead, Mark Watts, Guy Eaton and Susan Cooke, ‘MoD knew of Cayman payments in Saudi defence deal’, Exaro News, 18 May 2012.

  19 Frederika Whitehead, ‘How MoD approved “agency fees” in Sangcom deal’, Exaro News, 26 June 2012.

  20 Frederika Whitehead, ‘Auditors “failed to stop £14.5m bribes in Sangcom project”’, Exaro News, 30 May 2012; and conversations with Ian Foxley.

  21 Frederika Whitehead, ‘SFO faces pressure over £2bn UK–Saudi defence deal’, Exaro News, 30 May 2012.

  22 House of Commons, Business, Innovation and Skills, Defence, Foreign Affairs and International Development Committees, ‘Scrutiny of arms export controls 2012’, 13 July 2012, pp. 148–50, http://www.publications.parliament.uk/pa/cm201213/cmselect/cmquad/419/419ii.pdf.

  23 ‘EU cuts Zimbabwe targeted sanctions by one-third’, Associated Press/Boston.com, 17 February 2012.

  24 Press release: ‘Council of the European Union removes John Bredenkamp and his companies from sanctions list’, Carter-Ruck Solicitors, 17 February 2012, http://www.carter-ruck.com/Documents//Press_Release-John_Bredenkamp-170212.pdf.

  25 ‘Specially designated nationals and blocked persons’, Office of Foreign Assets Control, 24 July 2012, http://www.treasury.gov/ofac/downloads/t11sdn.pdf.

  26 T. Crawford-Browne, Affidavit in the Matter of Terry Crawford-Browne and the President of the Republic of South Africa and the Government of the Republic of South Africa in the Constitutional Court of South Africa, http://www.politicsweb.co.za/politicsweb/view/politicsweb/en/page71639?oid=293835&sn=Detail&pid=71639.

  27 ‘Zuma appoints inquiry into arms deal’, Times Live, 15 September 2011.

  28 ‘Youth want arms deal probe to resume’, Business Day, 25 August 2011.

  29 Judgment in the matter of the Democratic Alliance and others and The Action National Director of Public Prosecutions and others in the Supreme Court of South Africa, Case Number 288/11, 20 March 2012.

  30 ‘DA seeks to punish NPA for Zuma’s corruption documents’, Mail & Guardian, 18 July 2012, and ‘“Spy Tapes” debacle heads back to court’, Times Live, 19 July 2012

  31 ‘The arms deal: secrecy clause invoked’, Financial Mail, 11 June 2012.

  32 ‘Information bill threatens arms deal probe’, The Star, 11 May 2012. The official name of the ‘Secrecy Bill’, so dubbed for its potentially chilling impact on investigative reporting and transparency, is the Protection of State Information Bill.

  33 ‘Inside South Africa’s illegal helicopter smuggling operation’, Sunday Times, 11 March 2012.

  34 ‘Iran arms embargo query for SA firm’, Business Day, 28 March 2012.

  35 ‘Inside South Africa’s illegal helicopter smuggling operation’, Sunday Times, 11 March 2012.

  36 ‘The spy who came in from the cold’, Sunday Times, 11 March 2012.

  37 ‘Sunday Times transcript of recording of meeting held on 17 February 2011 between Barry Oberholzer, Raisaka Masebelanga, Jo Mboweni and Prudence “Gugu” Mtshali’, www.fraudabc.com.

  38 ‘Iran helicopter stink grows’, Sunday Times, 5 August 2012.

  39 Ibid.

  40 Complaint in the Demand for Jury Trial, Turkcell Ileti Im Hizmetleri A.S. vs. MTN Group Ltd, United States District Court of Columbia, No. 12CV00479, 28 March 2012.

  41 ‘MTN’s cash, weapons and diplomatic ties in Iran’, Mail & Guardian, 30 March 2012; Complaint in the Demand for Jury Trial, Turkcell Ileti Im Hizmetleri A.S. vs. MTN Group Ltd, United States District Court of Columbia, No. 12CV00479, 28 March 2012.

  42 ‘Sarkis G. Soghanalian, arms dealer dubbed “merchant of death,” dies at 82’, Washington Post, 11 October 2011.

  43 ‘Charles Taylor sentenced to 50 years in prison for war crimes’, Guardian, 30 May 2012.

  44 ‘The charges against Charles Taylor’, BBC News Africa, 8 February 2011; the judgment is available, in full, from the Special Court for Sierra Leone website. See: Judgment in the matter of Prosecutor v. Charles Ghankay Taylor, Case No: SCSL-03-01-T, Special Court for Sierra Leone, 18 May 2012, http://www.sc-sl.org/LinkClick.aspx?fileticket=k%2b03KREEPCQ%3d&tabid=107.

  45 Sentencing Judgment in the matter of Prosecutor v. Charles Ghankay Taylor, Case No: SCL-03-01-T, Special Court for Sierra Leone, 30 May 2012, Para 70, http://www.sc-sl.org/LinkClick.aspx?fileticket=U6xCITNg4tY%3d&tabid=107.

  46 ‘Liberia ex-leader Charles Taylor gets 50 years in jail’, BBC News Africa, 30 May 2012.

  47 ‘Liberia’s Taylor to be called witness in arms case’, Reuters, 1 February 2011.

  48 ‘Disarming Viktor Bout’, The New Yorker, 5 March 2012.

  49 Judgment in a Criminal Case, United States of America v. Viktor Bout, United States District Court: Southern District of New York, Case 1:08-cr-000365-SAS (document 94), p. 1.

  50 ‘Viktor Bout sentenced to 25 years in prison’, Guardian, 5 April 2012.

  51 ‘Viktor Bout partner Smulian gets five years for arms deal’, Bloomberg, 5 May 2012.

  52 ‘Viktor Bout’s legal battle takes Bangkok bounce’, RT, 23 July 2012.

  53 ‘Viktor Bout: closer to home’, The Voice of Russia, 6 July 2012.

  54 ‘Russia condemns US sentence for arms dealer Viktor Bout’, Guardian, 6 April 2012.

  55 ‘Kremlin to Viktor Bout: game not over’, Voice of America, 25 April 2012.

  56 ‘Rwanda military aiding DRC mutiny, report says’, BBC News Africa, 4 June 2012.

  57 ‘Rwanda and the DRC: why Washington lost patience’, Guardian, 1 August 2012. See also ‘Guilt blinds some to faults of Rwanda’, Irish Times, 4 August 2012.

  58 ‘Sudan and South Sudan end oil dispute’, Financial Times, 4 August 2012.

  59 ‘Govt authorities must end its crackdown on demonstrators and activists – Amnesty International’, Amnesty International press release, 4 August 2012. See also ‘Sudan protestors killed with automatic rifle ammunition – Amnesty’, Reuters, 3 August 2012.

  60 ‘Recent violence in Darfur reminder that conflict is not over’, The International, 29 July 2012.

  61 ‘The Libyan elections were another step towards stability’, Guardian, 11 July 2012.

  62 ‘Looted Libyan arms flooding into Gaza’, Daily Telegraph, 23 August 2011.

  63 ‘Alarm over smuggled Libyan arms’, Wall Street Journal, 12 November 2011.

  64 ‘Libya weapons aid Tuareg rebellion in Mali’, Los Angeles Times, 12 June 2012.

  65 ‘Libya’s abandoned weapons serious threat to civilians’, Middle East Online, 2 August 2012.

  66 Colin Freeman, ‘How Britain courted, armed and trained a Libyan monster’, Daily Telegraph, 25 September 2011.

  67 Colin Freeman and Patrick Sawer, ‘UK promoted sale of sniper rifles to Gaddafi just weeks before uprising began’, Daily Telegraph, 10 September 2011.

  68 Jerome Taylor, ‘British delegation will visit Libya in effort to kick-start arms deals’, Independent, 5 November 2011.

  69 ‘Egypt’s military ruler orders Parliament dissolved’, Reuters, 16 June 2012.

  70 ‘Syria Profile’, BBC News, 30 July 2012; ‘“Defected Syria security agent” speaks out’, Al Jazeera, 8 June 2011.

  71 Margaret Coker and Joe Lauria, ‘U.N. condemns Syria’s campaign’, Wall Street Journal, 3 August 2012,; Louis Charbonneau, ‘U.N. alarmed at rising death toll in Syria, Homs situation’, Reuters, 19 June 2012.

  72 ‘Iran “sending arms to Syria despite ban”’, Al Jazeera, 17 May 2012.

  73 Jo Adetunji, ‘Russian arms dealer sends missile defence systems to Syria’, Guardian, 16 June 2012.

  74 Ian Black and Severin Carrell, ‘Russian arms shipment bound for Syria foiled by Britain’s insurers’, Guardian, 19 June 2012.

  75 Eric Schmitt, ‘C.I.A. said to aid in steering arms to Syrian opposition’, The New York Times, 21 June 2012.

  76 The following account of the Angolan–Russian debt deal is taken from A. Feinstein and P. Holden, The Den of Thieves: The Corrupt Russian–Angolan Debt Deal (Corruption Watch: forthcoming). As of February 2013, a detailed, referenced report can be found at http://www.corruptionwatch-uk.org/about/.

  77 Founding Affidavit in the Claim of Vitaly Malkin and Pierre Falcone Against Arkadi Gaydamak, Global Alpha Star Fund, Premium Fund, Doxa Fund and the Mathanel Fund, Regional Court of Jerusalem, Case No: 11C81857, para. 105.

  78 ‘Sarko facing money laundering charges’, IOL News, 15 May 2012.

  79 Jonathan Manthorpe, ‘French judges begin bribery probe’, Vancouver Sun, 7 May 2012.

  80 BBC News, 12/3/2012, ‘Albania jails officials over Gerdec arms-dump blast’, BBC News, 12 March 2012; Bernet Koleka, ‘Albanian court jails 18 over deadly explosion’, Reuters, 12 March 2012.

  81 ‘Fla. arms dealer seeks new trial in fraud case’, CBS Tampa, 21 January 2012.

  82 U.S. v Merrill, Case No. 11-11432 (C.A. 11, Jun. 27, 2012), http://judicialview.com/index.php?m_menu=199&curpost=558122&type=2.

  83 C. M. Matthews, ‘Government drops high-profile FCPA sting case’, Wall Street Journal, 21 February 2012; ‘A guest post from the Africa sting jury foreman’, FCPA Professor, 6 February 2012.

  84 C. M. Matthews, ‘Cooperator gets 18 months in complicated bribery case’, Wall Street Journal, 31 July 2012.

  85 Mattea Kramer, ‘Spinning ourselves into a deficit panic’ Tomgram, 17 July 2012.

  86 Winslow Wheeler, ‘The jet that ate the Pentagon’, Foreign Policy, 27 April 2012.

  87 Anna Meier and Suzanne Dershowitz, ‘Road show with senators, brought to you by Pentagon contractors’, POGO, 31 July 2012.

  88 ‘Ex Lockheed lobbyist now in key defense oversight role’, POGO, 26 July 2012.

  89 ‘No US troops, but an army of contractors in Iraq’, NPR, 27 December 2011, and ‘The US departure from Iraq is an illusion’, Guardian, 25 October 2011.

  90 According to the National Priorities ‘Cost of War’ Project, www.costofwar.com.

  91 ‘Obama admin helps undermine U.N. arms treaty ta

  cord-high weapons sales abroad’, Democracy Now, 2 August 2012.