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How Kuwait Lobbied Hillary Clinton to Nix Criminal Probe of Defense Contractor

By Russell Mokhiber | CounterPunch | June 2, 2017

In 2009, Kuwait called on then Secretary of State Hillary Clinton to intervene with the Justice Department and help nix a criminal fraud case against a Kuwait defense contractor Agility Public Warehousing Company.

The case ended up settling just last week, with the company pleading guilty to theft of government property and paying $95 million for overcharging the Pentagon on food contracts.

In November 2009, the Justice Department criminally indicted Agility and joined a False Claims Act whistleblower lawsuit.

In a letter to Clinton dated December 5, 2009, then Kuwaiti Foreign Minister Mohammed Al-Sabah writes that “in consideration of the special relations between our two friendly countries, we ask that this dispute be settled amicably without having to resort to criminal adjudication.”

Kuwait has donated between $5 million and $10 million to the Clinton Foundation.

Foreign donations to the Clinton Foundation became a major issue in the Presidential campaign last year.

Agility was the prime vendor to feed U.S. and coalition troops in Iraq, Iran and Jordan from between 2003 and 2010, securing $8.5 billion worth of prime-vendor food contracts.

As part of the global settlement, Agility will pay $95 million to resolve civil fraud claims, forgo administrative claims against the United States seeking $249 million in additional payments under its military food contracts, and plead guilty to a criminal misdemeanor offense for theft of government funds.

The Pentagon’s Defense Logistics Agency will also release a claim of $27.9 million against Agility and lift its suspension of Agility, as the company has been suspended from federal government contracting for the last seven years after being indicted.

An administrative agreement entered between the Defense Logistic Agency and Agility requires oversight of an Agility entity by an independent corporate monitor and the maintenance of an ethics and compliance program with a number of detailed requirements.

The civil claims and criminal charges arise out of allegations originally raised in a civil whistleblower lawsuit against Agility and another Kuwaiti company, The Sultan Center Food Products Company.

Kamal Mustafa Al Sultan, a former vendor of Agility, filed the lawsuit under the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.

Al Sultan will receive a $38.85 million for his work in bringing the case to justice.

The government alleged that Agility and TSC knowingly overcharged the Department of Defense for locally available fresh fruits and vegetables that Agility purchased through The Sultan Center and falsely charged the full amount of Center’s invoices despite agreeing that Agility would pay 10 percent less than the amount billed.

The United States also alleged that Agility failed to disclose and pass through rebates and discounts it obtained from U.S.-based suppliers, as required by its contracts.

“This is one of the largest military procurement fraud cases in the history of the False Claims Act, passed by Abraham Lincoln to combat war profiteers and one of the largest whistleblower awards ever in a military-procurement fraud case,” said Raymond Moss, Al Sultan’s lawyer. “Mr. Al Sultan’s unrelenting perseverance to see justice done for U.S. taxpayers and the troops who bravely fought in the two Iraq Wars to protect Kuwait, is awe inspiring and a classic David vs. Goliath story. This case proves the power and efficacy of the False Claims Act to right wrongs and expose and deter fraud anywhere in the world.”

The filing of Al Sultan’s lawsuit in 2005 — and its resulting Justice Department investigation — resulted in sweeping governmental changes in prime food vendor contracts to reflect greater pricing transparency, prohibitions on kickbacks and rebates and prompt payment discounts, saving the U.S. government and taxpayers billions of dollars, Moss said.

Moss said that Al Sultan’s whistleblower lawsuit also spawned the initiation of other Department of Justice investigations, whistleblower lawsuits, prosecutions settlements and convictions against other prime vendors and their suppliers for similar conduct.

“Raymond Moss and his team at Moss & Gilmore were highly effective, skilled and tenacious advocates over this entire 13 year battle,” Al Sultan said. “They never took their foot off the gas and, with Department of Justice, went toe to toe against six of the largest and most powerful law firms in the country.”

“As the great ancient Roman politician and lawyer Cicero once said, ‘Any man can make a mistake, only a fool keeps making the same one,’” Al Sultan said.

The company was represented in the criminal case by Richard Marmaro of Skadden Arps, Kristin Tahler of Quinn Emanuel and Richard Deane Jr. of Jones Day,

Russell Mokhiber is the editor of the Corporate Crime Reporter..

June 2, 2017 Posted by | Corruption, Deception, Timeless or most popular | , , | Leave a comment

Missing the Real Noriega Story

Vice President George H.W. Bush meeting with Panamanian Gen. Manuel Noriega in the mid-1980s when Noriega was considered a key ally in helping the Nicaraguan Contras wage a brutal guerrilla war to overthrow the leftist Sandinista government.

By Jonathan Marshall | Consortium News | June 1, 2017

The death of former Panamanian strongman Manuel Noriega on May 29 elicited few if any tears. But it should have sparked more reflection in the United States on his ugly history of service to the CIA, the hypocrisy of Washington’s sudden discovery of his abuses once Noriega became an unreliable ally against the Nicaraguan Sandinistas, and the George H.W. Bush administration’s bloody and illegal invasion of Panama in December 1989.

In fairness, many progressives and mainstream journalists have called attention to this troublesome history over the years. But few have dared to question the nearly universal condemnation of Noriega as a protector of international drug traffickers. That incendiary claim — first broadcast loudly by the unlikely trio of right-wing Sen. Jesse Helms, R-North Carolina; liberal Sen. John Kerry, D-Massachusetts; and investigative journalist Seymour Hersh — galvanized the American public to support his ouster.

After the U.S. invasion, which killed hundreds of Panamanians and 23 U.S. soldiers, Noriega was arrested on Jan. 3, 1990 by armed U.S. drug agents.

President George H. W. Bush declared that Noriega’s “apprehension and return to the United States should send a clear signal that the United States is serious in its determination that those charged with promoting the distribution of drugs cannot escape the scrutiny of justice.” U.S. Ambassador Deane Hinton called the invasion “the biggest drug bust in history.”

Convicted in 1992 on eight felony counts following what officials called the “trial of the century,” Noriega was sentenced to 40 years in jail. Although released early from U.S. incarceration, he spent the rest of his life in French and Panamanian prisons.

The resulting publicity created lasting myths about Noriega and drugs. Journalists who should know better have described Noriega as “one of the world’s biggest drug kingpins,” to quote Time magazine. In fact, Louis Kellner, the U.S. attorney who oversaw his Miami indictment and trial admitted, “Noriega was never a major player in the drug war.”

Indeed, at worst, he was a small fry compared to the military rulers of Honduras, whose epic protection of the cocaine trade was tolerated by Washington in return for using that country as a staging base for Contra operations against the Sandinista-led government of Nicaragua in the 1980s.

Deeply Flawed Trial

A few close observers of the long, expensive, and controversial trial believe it failed to prove Noriega’s guilt at all.

David Adams, who covered it extensively for the London Independent, said the government’s case was “marred by incompetent witnesses, false testimony, and poor presentation.”

Newsday’s Peter Eisner quoted Judge William Hoeveler, who presided over the trial, as saying “the outcome could have been different” if Noriega had been better represented.

Although the government put more than two dozen people on the stand, their testimony was not always relevant or credible.

Paul Rothstein, Georgetown University law professor and former chairman of the American Bar Association’s criminal evidence committee, said of the government’s witnesses, “What promised to be the trumpeting of elephants turned out to be the whimperings of mice.”

Big-time drug bosses enjoyed great rewards for telling the jury what the government wanted. Observed reporter Glenn Garvin, “To convict Noriega, the strike force had to make a flurry of deals with other accused narcotraffickers, bargaining a collective 1,435 years in prison down to 81.”

The fierce Noriega critic R. M. Kostner declared, “The prosecution was shameless in its bribery of witnesses. What co-defendants got for flipping made me sometimes wish that I had been indicted. The proceedings were almost totally politicized. It was clear long before they opened that, regardless of evidence, Noriega could not possibly be acquitted – a very sad thing for the United States.”

Other witnesses who never took the stand contradicted the government’s case years later. Retired Medellin cocaine lord Juan David Ochoa claimed in an interview with Frontline that “at no moment did [Noriega] protect us. . . . As far as I know he had nothing to do with the drug trade.”

Greg Passic, former head of financial operations for the DEA, said, “The Colombians I talked to in the drug transportation business said they didn’t deal with Noriega at all. To deal with him you would just have to pay him more money. They didn’t need it. It would be expensive.”

In fact, DEA officials repeatedly lauded Noriega’s cooperation with their anti-drug investigations, both in public letters of support and in private. Recalled Duane Clarridge, former head of Latin America operations for the CIA, “The DEA had told us that they were getting great support in Panama, and from Noriega in particular, in interdicting drugs.”

More than a year after the U.S. invasion, when it was absolutely impolitic to voice such sentiments, one “federal drug enforcement source” told a reporter, “Noriega was helping us, not ten percent, not twenty percent of the time, but in every instance we asked him to do so, one-hundred percent of the time. . . . These were key operations . . . that struck at both the Cali and Medellin cartels.”

Even the U.S. ambassador to Panama in the final years of Noriega’s rule, Arthur H. Davis Jr., said in an oral history interview, “all I know is that, all the time I was there, Noriega . . . cooperated one hundred percent with our people. Anytime we had a ship that we wanted to be interdicted on the high seas and we asked permission, they gave permission. . . . Anytime there was some prominent drug man coming up and we knew about it, Noriega would help us with it. And when we found out about things, the [Panamanian Defense Forces] would go over there and round them up and turn them over to us.”

Turning Against Noriega

One of the high points of Noriega’s cooperation was Operation Pisces, a three-year undercover probe that culminated in 1987. Attorney General Edwin Meese called it “nothing less than the largest and most successful undercover investigation in federal drug law enforcement history.”

Among those indicted were Medellin Cartel kingpins Pablo Escobar and Fabio Ochoa. Panama made 40 arrests and seized $12 million from accounts in 18 local banks. Said one U.S. prosecutor who helped direct the case, “The Panamanian officials we were dealing with were sincerely cooperative. . . . They could have breached security, and they didn’t.”

The operation may have pleased the DEA, but it angered the country’s financial elite, who directly profited from money laundering. One local banker warned, “this could end the Panamanian banking system, because people will no longer believe they can count on bank secrecy.”

Within two months, spooked investors withdrew up to $4 billion of the country’s $39 billion in bank deposits, triggering the most serious banking crisis in Panama’s history.

A Western diplomat said of Noriega, “The bankers can bring him down. They are complaining in Washington and they’ve got a lot of clout.” The demonstrations organized that summer by Panama’s business elite — and Noriega’s heavy-handed response to them — triggered his eventual slide from power

The bankers were joined by angry cartel leaders, who viewed Noriega as an “obstacle to the functioning” of their money laundering operations in Panama, in the words of drug policy expert Rensellaer Lee.

A lawyer for the bosses of the Cali Cartel complained that his clients were “frustrated by the problems” Noriega created for them in Panama.

Cali leaders later got their revenge when they paid $1.25 million to bribe a drug trafficker to become a key witness against Noriega in his Miami trial. In exchange for the testimony, eager U.S. prosecutors agreed to cut nine years off the sentence of an unrelated Cali trafficker — brother of one of that cartel’s senior leaders.

When Noriega’s defense team cried foul, a federal appeals court declined to order a new trial, but criticized the government for appearing “to have treaded close to the line of willful blindness” in its eagerness to win a conviction.

Medellin leaders were just as unhappy with Noriega as those in Cali. A pilot for one of the biggest Medellin smugglers described Pablo Escobar’s reaction after Noriega approved a raid on one of his cocaine labs in May 1984: “He was just really out of whack with Noriega. He was like, ‘This guy is dead. No matter what, he is dead.”’

It would be foolish to assert that Noriega, alone among all leaders in Central America, kept his hands clean of drugs. But much of his personal fortune is easily accounted for from other sources, such as the sale of Panamanian passports on the black market.

Whatever Noriega’s involvement with drug traffickers, as I have shown elsewhere, the Bush administration displayed unbelievable cynicism when, even before his capture, it swore in a new president of Panama who had sat on the board of one of the most notorious drug-money-laundering banks in the country. His attorney general, who unfroze the bank accounts of Cali traffickers, later became legal counsel for the Cali Cartel’s top smuggler in Panama.

Following Noriega’s ouster, not surprisingly, cocaine trafficking began surging in the country. A year and a half after his arrest, unnamed “U.S. experts” told Time magazine that “the unexpected result . . . is that the rival Cali cartel established a base in Panama and has since inundated the country, along with Mexico, Guatemala and the Caribbean, with vast quantities of cocaine destined for the U.S. and Europe.”

Today, though, all that is forgotten, along with the questionable course of justice during Noriega’s trial. Noriega, even in death, deserves no eulogies, but he does deserve a more balanced judgment of history.

June 1, 2017 Posted by | Corruption, Deception, Illegal Occupation, Timeless or most popular, War Crimes | , , , | Leave a comment

Secretive Bilderberg Group to talk Russia, Trump & ‘war on information’

RT | May 31, 2017

Many of the world’s most powerful people are gathering for the annual meeting of the mysterious Bilderberg Group this week. Russia, the Trump administration and ‘The war on information’ are among key topics up for discussion.

This year’s gathering takes place in Chantilly, Virginia, less than 30 miles from the White House, and goings on in the Oval Office are top of the agenda for the 131 people who’ve confirmed they’re attending.

Many top White House figures will be at the four-day event, including the Secretary of Commerce Wilbur Ross, National Security Advisor HR McMaster and Assistant to the President Christopher Liddell.

Other topics up for discussion include ‘Russia in the international order,’ China, ‘The Trans-Atlantic defence alliance: bullets, bytes and bucks,’ ‘The war on information,’ ‘Direction of the EU’ and ‘Why is populism growing?’

This year’s event marks the 65th meeting of the infamously-secretive group which has met every year since 1954. Denis Healey, Joseph Retinger, David Rockefeller and Prince Bernhard of the Netherlands were the group’s founders.

The group says the conference is “designed to foster dialogue between Europe and North America.” Each year it’s attended by people from the fields of politics, industry, finance, media and academia. About two thirds of the participants come from Europe and the rest from North America.

As well of some of Trump’s top brass, other attendees this year include Secretary General of NATO, Jens Stoltenberg, Republican senators Tom Cotton and Lindsey Graham, and Chinese Ambassador to the US Cui Tiankai.

Editors, and chief commentators, from several world famous publications including Bloomberg, The Economist, The Financial Times, The Wall Street Journal,  Italian newspaper Corriere della Sera and the London Evening Standard will also be in attendance.

Notorious for the lack of information about what happens during the discussions, meetings are closed to the public and to reporting journalists. All of the the meetings are held under the Chatham House Rule, which means that participants are free to use the information received, but neither the identity nor the affiliation of the speakers can be revealed. Also, no minutes are taken and no report is written.

Nobody can buy their way into the meetings, rather they have to be invited. The invited guests are not allowed to bring their partners and the group reportedly never visits the same hotel twice.

Among the most famous past attendees are Henry Kissinger (who is going again this year), Bill Gates, numerous members of European royal families, Bill Clinton, and Margaret Thatcher, who both attended before they rose to power.

June 1, 2017 Posted by | Corruption, Deception, Timeless or most popular | | Leave a comment

Once Again, Mainstream Media Does Pharma’s Bidding

By Martha Rosenberg | CounterPunch | May 30, 2017

As CounterPunch has told you, taxpayers are stuck paying for the opioid crisis created by Big Pharma to make more money. Late last year, the Senate approved $1 billion of our money for “opioid prevention and treatment programs” as part of the 21st Century Cures Act.

What’s wrong with this picture?

When Big Tobacco was busted for causing millions of deaths by lying to consumers that its products were neither addictive or deadly it was forced to pay $206 billion in the 1998 Tobacco Master Settlement Agreement. [executives are pictured before Congress in 1994) Provisions include paying states, in perpetuity, for some of the medical costs of people with smoking-related illnesses. Why are taxpayers paying for the similar, Pharma-caused scourge?

This week the New York Times ran another opioid crisis piece that ignores where the crisis came from–– Pharma’s deliberate machinations. The opioid crisis “just happened” say mainstream media (and lawmakers) so taxpayers have to pay.

In naming a new mental health czar, Dr. McCance-Katz, says the Times, the central rift and disagreement is “the medical model of psychiatry, which emphasizes drug and hospital treatment and which Dr. McCance-Katz has promoted, and the so-called psychosocial, which puts more emphasis on community care and support from family and peers.”

No, Times, the rift is actually about nothing but money and the financial role the drug industry plays in recovery. “Addiction medicine,” –treating opioid addiction with more opioid drugs (buprenorphine/Suboxone)–– is big business and surfaced when the opioid/heroin overdoses and deaths could no longer be ignored. It literally makes money off the people Pharma hooked. Ka-ching.

Bain Capital, for example, paid $720 million for CRC Health in 2006 and resold it for $1.18 billion in 2014. The National Alliance of Advocates for Buprenorphine Treatment unashamedly admits it is industry funded to “Educate the public about the disease of opioid addiction and the buprenorphine treatment option; [and] help reduce the stigma and discrimination associated with patients with addiction disorders.”

Insurance companies seldom reimburse rehab facilities anymore unless an expensive drug is used in the addiction treatment. Peers, patients advocates and former addicts, on the other hand, realize that more drugs is not the answer to drugs and the medical model is just a money making scheme. Peer support such as Twelve Step programs, on the other hand, is 100 percent free.

It is not hard to see why mainstream media give Big Pharma a shameless pass. Drug ads are estimated to account for as much as 72 percent of commercials and almost all media companies allow drug company representatives to serve as board members.

The Times cites Dr. McCance-Katz’s support from the the American Psychiatric Association (APA) and the National Alliance on Mental Illness (NAMI) as proof of her appropriateness for office. Both the APA and NAMI were investigated by Congress for Big Pharma financial conflicts of interest.

May 31, 2017 Posted by | Corruption, Deception, Mainstream Media, Warmongering | | Leave a comment

Things that Saudis can’t buy off

By M K Bhadrakumar | Indian Punchline | May 29, 2017

There is something obscene about anyone who held high positions in the government – for example, an Ambassador or an Army Chief – taking up a post-retirement job as employee of a foreign government. Pakistan’s former army chief General Raheel Sharif should not have accepted the offer made by Saudi king Salman to appoint him as the head of a newly-formed Islamic Military Alliance.

It is common sense that the assignment would effectively make the Pakistani general a vassal of the House of Saud. What was the need for it? A Pakistani general is almost certainly a very wealthy man who really doesn’t need more money. And if Gen. Sharif had an insatiable itch to continue to fight terrorism till the end of his life, Pakistan itself provided ample opportunities.

Why Saudi Arabia? The only plausible answer is — avarice. The Saudis’ capacity to lure foreign elites is a legion. According to reports, Salman gave away to US President Donald Trump personal gifts alone worth $1.2 billion. One heavy sword made of pure gold and studded with diamond stones weighing 25 kilograms alone was worth $200 million. Then, there is this 125 meter long yacht, which is apparently the world’s tallest personal yacht, with 80 rooms with 20 royal suites.

Maybe, the yacht is useful for Trump’s escapades, but what will he do with a 25 kg sword? Obviously, Salman was bribing Trump. As quid pro quo, Salman probably expects Trump to close the file on the 9/11 attacks and drop the idea of seeking compensation for the victims’ families under the US legislation known as Justice Against Sponsors of Terrorism Act.

Of course, Saudis do not have to give away such lavish gifts to the elites in Pakistan (or India.) A Mont Blanc ballpoint pen, Rolex wrist watch, an odd job for the nephew or son-in-law – that generally does the trick. To be sure, by Pakistani standards, Gen. Sharif must be getting a fat salary.

However, the amazing part is that the Pakistani government gave him an exceptional ‘No Objection Certificate’ to take up such an assignment. The Pakistani leadership would have known that the Saudis had a certain agenda in creating the Islamic Military Alliance. The Saudi intention is to rally Sunni Muslim countries and create a phalanx against Shi’ite Iran. No matter the gloss put on the IMA being an anti-terror enterprise, the alliance’s Iran orientation was crystal clear.

The Pakistani press reported that Iran’s ambassador in Islamabad Mehdi Honardoost called on army chief General Qamar Javed Bajwa in Rawalpindi twice during the month of April alone to convey Tehran’s disquiet over Sharif’s appointment. But the government remained impassive.

The birds are now coming to roost. One outcome of Trump’s visit to Riyadh last week is that the Islamic Military Alliance now stands pretty naked as a Sunni Muslim alliance to fight Iran. Not only that, the alliance will fight Iran in secret collaboration with Israel. The Saudi Deputy Crown Prince Mohammad bin Salman has bragged in a media interview, “We will not wait for the war to be waged on Saudi soil. We will make sure that the war is waged in Iran and not in Saudi Arabia.”

Now, this is all spinning out of control. Imagine Gen. Sharif landing the IMA troops in Badar-e Bushehr and leading the charge of the light brigade to Shiraz and Esfahan and on to Tehran to overthrow the Iranian regime.  Therefore, it is not at all surprising that Gen. Sharif is reportedly developing cold feet and is contemplating to resign from his job and return to Pakistan.

Even if that is not the case, Pakistani leadership should order him to return home. It will be extremely damaging to Pakistan’s interests any which way one looks at it, if it gets entangled in the Saudi-Iranian tensions. As the African proverb says, ‘When elephants fight, it is the grass that gets hurt’.

The really bizarre part of it is that Trump’s rhetoric about Iran is all baloney. Trump is a bluff master. He will now walk away laughing with the sword and the yacht. Read a report in the New York Times – As Iran and U.S. Leaders Trade Barbs, Big Deals Proceed.

May 30, 2017 Posted by | Corruption, Militarism | , , , , | Leave a comment

Alleged Russia-Taliban Arms Link Disputed

By Jonathan Marshall | Consortium News | May 29, 2017

A tiny article from Reuters in late May quoted the director of the U.S. Defense Intelligence Agency as telling a Senate hearing, “I have not seen real physical evidence of weapons or money being transferred.” Marine Lt. Gen. Vincent Stewart was addressing widespread claims by top Pentagon officials of Russian arms flowing to the Taliban in Afghanistan.

By conceding the reports have no real substance, Stewart quietly called the bluff of military hardliners who are invoking the Russian menace to justify prolonging and escalating the longest and second-most-costly war in U.S. history. Stories of Russian military shipments to Afghanistan began last December, with a typical headline from the Washington Post: “Russia begins supplying weapons to Afghanistan, sides with Taliban.”

Down in the body of the story, however, it emerged that Moscow had agreed to ship 10,000 assault rifles not to the Taliban but to the Afghan government’s police force in Kabul. A Russian Foreign Ministry official said, “Russia has been consistently pursuing the policy of providing comprehensive assistance to Afghanistan in the establishment of a peaceful, independent, stable and self-sufficient state, free from terrorism and drugs.” Russia previously supplied helicopters and pilot training to Afghan forces, under a contract with the U.S. Department of Defense, which continued thanks to a special U.S. waiver on economic sanctions.

As to the Taliban, the Russian official said only that his government stood ready, in the interests of Afghanistan’s national reconciliation, to support “the possible weakening of the sanctions regime . . . against the Taliban, if it is not contrary to the national interests of Afghanistan.” He added that Russia shared the Taliban’s interest in defeating ISIS in Afghanistan.

Scapegoating the Russians

Starting in March, coincident with urgent requests by the U.S. commander in Afghanistan for thousands more troops to stem the Taliban’s military advances, senior Pentagon officers began blaming Russia for setbacks on the battlefield.

“I think it is fair to assume they may be providing some sort of support to [the Taliban] in terms of weapons or other things that may be there,” General Joseph Votel, chief of U.S. Central Command, told members of Congress.

Defense Secretary James Mattis chimed in with claims, paraphrased by NPR correspondent Tom Bowman, that “the Russians are providing some support, including maybe weapons to the Taliban.” Noting that the details were “murky,” Bowman added, “the commander in Afghanistan, General John Nicholson, thinks this is a way for the Russians just to undermine the U.S. and NATO.”

Staying on message, a spokesman for the NATO coalition in Afghanistan told the Los Angeles Times days later, “We know that actions by Russia in Afghanistan are meant to undermine the work of the United States and NATO to support the Afghan government.” The reporters then stated as fact, “It . . . represents another effort by [Russian President Vladimir] Putin to exert power globally while weakening the U.S.”

In late April, a “senior U.S. military official,” speaking on background, asserted that the Russians had “increased their supply of equipment and small arms to the Taliban over the past 18 months.” He said “the Russians have been sending weapons, including medium and heavy machine guns, to the Taliban under the guise that the materiel would be used to fight the Islamic State in eastern Afghanistan.”

Secretary Mattis, quoted in the same article, said menacingly, “we’re going to have to confront Russia where what they’re doing is contrary to international law or denying the sovereignty of other countries.”

Russian Denials

Russia, increasingly considered a “hostile power” by many Americans, won few converts by denying what it called “irresponsible accusations” based on “rumors and conjectures.” Its special envoy to Afghanistan branded the allegations of its arms transfers to the Taliban insurgents “absolute lies . . . aimed at justifying the failure of the U.S. military and politicians.”

But Russia’s credibility – even after months of strident and varied accusations from Western officials – could hardly have been lower than the Afghan sources quoted in U.S. news accounts to bolster the Pentagon’s claims. One notable example was the police chief of Uruzgan province, who spoke of Russian agents, “dressed in doctor’s uniforms,” infiltrating his region and “enticing people against the government, providing training and teaching how to assemble land mines.”

The rotten corruption of the Uruzgan provincial police has been attested to by no less than the commander of the Afghan army in that province. Police there abandoned the provincial capital last year, allowing Taliban forces to walk in unopposed — not because of Russian weapons but because senior officials had pocketed police pay for months at a time.

Similar claims against Russia came from the governor of Kunduz province, whose capital was overrun by Taliban forces last fall in what reporters described as a “seemingly easy re-entry” into the city after a similar Taliban incursion in 2015 was repelled by U.S. Special Forces. Other Afghan officials, and independent reporters, ascribed the Taliban’s easy victories to the local population’s grievances against the “mafia-like” elite who run the province.

Experts also blamed aid from Pakistan — not Russia — to the Taliban. Echoing their complaint, former U.S. Ambassador Zalmay Khalilzad said last year, “The issue of the U.S. inability to deal effectively with Pakistan, and the [Taliban] sanctuary problem in Pakistan, has been the mother of all problems for U.S.-Afghan relations and of Afghanistan to some degree since 9/11.”

Another big supplier of the Taliban is Saudi Arabia. An exposé by Carlotta Gall in the New York Times revealed that as a longtime ally of Pakistan, “Saudi Arabia has backed Islamabad’s promotion of the Taliban. Over the years, wealthy Saudi sheikhs and rich philanthropists have also stoked the war by privately financing the insurgents.”

How US Arms Taliban

Perhaps the biggest arms supplier of all to the Taliban is the U.S. taxpayer. The Taliban rake off hundreds of millions of dollars from extortion of U.S.-funded projects in the country. They also fill their armories with U.S.-made weapons. A Taliban commander told Bloomberg News that when he needs more weapons and fuel, he simply buys or steals them from his foe. “It’s simple and cheaper,” he said.

As journalist and book author Douglas Wissing observed recently, “U.S-enabled corruption lost the Afghan War. . . Corruption funds the enemy, with hundreds of millions of dollars skimmed from U.S. logistics and aid money. . . . Empowered and financed by this corruption, Taliban strength has grown at double-digit rates annually since 2005. Insurgents now control about 40 percent of the countryside, and are pressuring government centers across country, including increasingly besieged Kabul.”

In the past, Donald Trump was correct when he tweeted that the war in Afghanistan was a “total disaster” – although as President, he is reportedly considering a Pentagon plan to escalate the U.S. role, again.

Blaming the Russians for the war’s latest reversals may let our Afghan allies and our own military off the hook for losing this long war in slow motion, but it won’t change the outcome.

May 29, 2017 Posted by | Corruption, Fake News, Mainstream Media, Warmongering | , , | Leave a comment

Brazil Mainstream Media Admits Spreading Fake News About Lula

teleSUR | May 23, 2017

The mainstream media channel has long claimed that both former leftist presidents were involved in the massive corruption scandal.

Brazil’s largest television channel, Globo, has admitted that is has divulged false information about former Brazilian presidents Luiz Inacio “Lula” da Silva and Dilma Rousseff.

Globo journalist William Waak acknowledged on television Tuesday that previous reports about Lula and Rousseff, allegedly owning offshore accounts, were inaccurate.

The mainstream media channel has long claimed that both former leftist presidents were involved in the massive corruption scandal involving Joesley Batista, owner of JBS, Brazil’s largest meat packing company.

“We said that Joesley Batista had claimed in the awarding statement that he deposited fines on two current accounts abroad, in the name of the ex-Presidents Lula and Dilma Rousseff,” Waak said.

“In reality, however, Batista said that the account is in his name, but that money was going to be allocated to Lula and Dilma’s campaigns.”

The correction did not repair damage caused to Lula and Rousseff’s image, since many international agencies and foreign newspapers have since echoed Globo’s false claim, failing to correct them.

Last Friday, Batista confessed that de-facto President Michel Temer had requested and received bribes from his company since 2010.

Batista, the protagonist of a wiretapping scandal incriminating the unelected Brazilian leader, exposed the arrangement to the Brazilian attorney general’s office. He claims he paid Temer roughly US$1 million in 2010 alone. Another US$921,000 was requested by the embattled president in 2012 to support Gabriel Chalita’s bid to become mayor of Sao Paulo.

Batista also claimed that during the impeachment process against ousted former President Dilma Rousseff, Temer requested a payment of more than US$85,000 dollars for online political marketing expenditure.

Temer has repeated that he has no intention of resigning. Contrarily, he’s considering a lawsuit against the owner of JBS in order to strengthen his defense.

May 24, 2017 Posted by | Corruption, Deception, Fake News, Mainstream Media, Warmongering | , , | Leave a comment

President Emmanuel Macron: Reversing Five Decades of Working-Class Power

By James Petras :: 05.21.2017 

Introduction

Whatever has been written about President Emmanuel Macron by the yellow or the respectable press has been mere trivia or total falsehood. Media lies have a purpose that goes beyond Macron’s election. Throughout Europe and North America, bankers and manufacturers, NATO, militarists and EU oligarchs, media moguls and verbal assassins, academics and journalists, all characterized the election victory of Macron as a ‘defeat of fascism’ and the ‘triumph of the French people’.

Macron and ‘What People’?

First of all, Macron received only 46% of the actual vote. Over 54% of eligible French voters either abstained, spoiled their ballots or voted for Marine Le Pen, the nationalist populist. In other words, 26 million voters rejected or ignored Macron’s candidacy versus 20.6 million voters who endorsed him. This was despite an unremitting push for Macron from the entire French and European mass media, all of the major political parties and the vast majority of academics, journalists, publishers, undertakers and doormen.

In a word: Emmanuel Macron is a minority President, unpopular to most of the French electorate.

There are some very sound political and socio-economic reasons why Macron’s candidacy would be rejected by most of the French people, while receiving full support from the ruling class.

Secondly, there was a phony image of Macron as the ‘novice, untainted by old-line corrupt politics’. The financial and business press busily painted an image of the virgin Manny Macron bravely prepared to introduce ’sweeping reforms’ and rescue France – a sort of banker-Joan of Arc against the veteran ‘fascist’ Marine Le Pen and her ‘deplorable’ supporters.

The reality is that Macron has always been a highly experienced member of the most elite financial-political networks in France. He served as a senior executive in the notorious Rothschild banking conglomerate. In a few short years ‘Saint Manny’ had accumulated millions of euros in commissions from fixing corporate deals.

Macron’s financial colleagues encouraged him to accept the post of Economic Minister under the decrepit regime of President Francois Hollande. Banker Macron helped the ‘Socialist’ President Hollande shed any of his party’s pro-labor pretensions and embrace a radical anti-worker agenda. As Economic Minister Macron implemented a 40 billion euro tax cut for businesses and proposed far-right legislation designed to weaken workers collective bargaining rights.

The Hollande-Macron proposals faced massive opposition in the streets and parliament. With the government’s popular support falling to the single digits, the anti-labor legislation was withdrawn or diluted … temporarily. This experience inspired Macron to re-invent (or re-virginize) himself: From hard-assed rightwing hack, he emerged the novice politico claiming to be ‘neither right nor left’.

The totally discredited ‘Socialist’ Hollande, following the example of France’s financial elite, supported presidential candidate Macron. Of course, whenever Macron spoke of representing ‘all France’, he meant ‘all’ bankers, manufacturers and rentier oligarchs – the entire capitalist sector.

In the first round of presidential voting, Macron’s candidacy divided the elites: Bankers were split between Macron and Fillon, while many social democrats, trade union officials and ‘identitarian’-single issue sectarians would end up voting Macron.

Macron won by default: Fillon, his far right bourgeois rival was snared in a political- swindle involving ‘family’ and his finicky supporters switched to Macron. The Socialists defected from their discredited Hollande to the ‘reconstructed choirboy’ Macron. Meanwhile, the ‘left’ had rediscovered ‘anti-fascism’: They opposed the national-populist Le Pen and slithered under the bankers’ backdoor to vote for Macron.

Almost one-third of the French electorate abstained or showed their contempt by spoiling their ballots.

Throughout the election theatrics, the media breathlessly reported every frivolous ‘news’ item to polish the halo of their ‘novice’ Macron. They swooned over the ‘novelty’ of Macron’s teen age ‘love affair’ and subsequent marriage to his former schoolteacher. The media played-up the charmingly ‘amateurish’ nature of his campaign staff, which included upwardly mobile professionals, downwardly mobile social democrat politicos and ‘off the street’ volunteers. The mass media downplayed one critical aspect: Macro’s historic ties to the big bankers!

Behind the carefully crafted image of a ‘political outsider’, the steely eyed Macron was never influenced by the swooning media propaganda: He remained deeply committed to reversing fifty years of working class advances in France in favor of the financial class.

Macron’s Power Grab : En Marche to Defeat the Working Class

Immediately upon his election, Macron presented his first major piece of legislation: The ‘liberalization’ (reversal) of France’s progressive and socially protective labor laws.

President Macron promised to eliminate industry-wide labor-capital negotiations, in favor of factory-by-factory negotiations. Undermining industry-wide collective power means that each monopoly or conglomerate can dominate and isolate workers in their work place. Macron envisions a complete shift of power into the hands of capital in order to slash wages, increase work hours and reduce regulations on workplace safety and worker health. The proposed anti-labor laws represent a return of capitalist power to the golden age of the late 19th and early 20th centuries – precisely why the financial elite anointed Macron as ‘President of all France’.

Even more important, by destroying a unified, labor movement and the power of workers’ solidarity, Macron will be free to radically restructure the entire socio-economic system in favor of capital!

Concentrating all power and profits in the hands of the capitalist class, Macron’s legislative agenda will free him to fire over 150,000 public employees, drastically reduce public spending and investment and privatize critical public financial, energy and industrial sectors.

Macron will shift the balance of power further away from labor in order to increase profits, reduce middle and working class social, health and educational services and to decrease corporate taxes from 33.3% to 25%.

Macron’s plan will strengthen the role of the French financial elite within the European Union’s oligarchical structure and allow the bankers to impose harsh ‘austerity’ policies throughout Europe.

In the sphere of foreign and military affairs, Macron fervently supports NATO. His regime will back the aggressive US military policies toward Russia and the Middle East – especially the violent breakup of Syria.

President Macron’s reactionary, ‘liberalizing’ agenda will require his party and allies to gain a majority in next month’s parliamentary elections (June 2017). His strategy will consist of ‘diversity in appearance and hard, single-minded reactionary policies in content’.

The ‘diverse’ groups and individuals, allied with Macron, are largely composed of fragmented collections of opportunists and discredited politicos mainly in search of office. Under Macron, the parliament will include everything from old-line rightwing social democrats, as well as single-issue environment and gender opportunists, allied with conservatives looking for a chance to finally savage France’s labor laws.

If successful in the coming elections, Macron’s parliament will legitimize the policies of his far right Prime Minister and Cabinet. If Macron fails to secure an outright majority, he is sure to patch together a coalition with veteran right-wing politicos, which, of course, will be ‘balanced’ with 50% women. Macron’s coalition of dinosaurs and ‘women’ will eagerly smash the rights and living standards of all workers – regardless of gender!

Macron hopes to win sufficient parliamentary votes to negotiate alliances with the traditional conservative parties and the rump of the Socialist Party to consolidate the rule of the Troika: the bankers, the EU and NATO.

President Macron: By the Ballot or the Bullet

There is no doubt that the French working class, the salaried public and private employees, the unemployed youth, students and public health workers will take to the streets, with the backing of 60% or more of the public, including the 33% who voted for Marine Le Pen.

Strikes, general and partial, of long and short duration, will confront the Macron regime and its far right, self-styled ‘transformative’ agenda.

Rothschild’s errand boy, Manny Macron cannot mobilize supporters in the streets and will have to rely on the police. Many parliamentary backers are fearful of both the problem (strikes) and the solution (police repression).

The Corporate Elite: President Macron Adopts Napoleonic Decrees

In 2016 when Macron was the Economic Minister in the President Francois Hollande’s regime, he introduced a new regressive labor policy dubbed the ‘El Khomri’ law (named after the reactionary Labor Minister Myriam El Khormi). This led to massive street demonstrations forcing Hollande to withdraw the legislation. Now as President, Macron proposes a far more rigid and destructive labor law, which his corporate colleagues insist he implement by the ‘ballot’ if possible or the ‘billy club’ if necessary. In other words, if he cannot win the support of the National Assembly, he will implement the labor law by presidential decree.

The President of MEDEF (Mouvement des Entreprises de France), the employers’ federation, Pierre Gattaz, has demanded immediate implementation of policies to crush labor. Macron will outlaw labor protests via presidential decree and cut parliamentary debate in order to transform the elite’s ‘El Dorado’ of all (labor) reforms (sic) into reality.

The entire leadership of the capitalist class and financial press backs Macron’s bid to govern by decree as a ‘good idea in the circumstances’, (Financial Times, 5/10/17, pg. 2). Macron’s ‘Napoleonic’ pretentions will inevitably deepen class polarization and strengthen ties between the militant trade unions and Le Pen’s industrial working class supporters.

We face an approaching time of open and declared class war in France.

Conclusion

Reality has quickly cut through the lies about the origin of Emmanuel Macron’s electoral victory. Brutal police truncheons, wielded in defense of Macron’s election triumph, will further reveal the real faces of French ‘fascism’ better than any editorial by the French ‘left’. The fascists are not to be found among Le Pen’s working class voters!

The fools within the French academia, who backed the Rothschild candidate in the name of ‘fighting fascism at all cost’, will soon find themselves wandering among the workers’ street barricade, dodging the clouds of teargas, on the way to their cafes and computers.

The ruling class chose Macron because they know he will not back down in the face of street demonstrations or even a general strike!

The intellectuals who backed Macron as ‘the lesser evil’ are now discovering that he is the greater evil. They are not too late to be . . . irrelevant.

Macron’s grandiose vision is to introduce his hyper-capitalist ideology throughout Europe and beyond. He proposes to transform the EU into a ‘competitive capitalist paradise under French leadership’.

Given the historic role of the French worker, it is more likely that Macron will not succeed in implementing his ‘labor reforms’. His decrees will surely provoke powerful resistance from the streets and the public institutions. When he falters, his parliamentary supporters will fracture into little warring clans. Factory owners will bemoan the workers who occupy their plants and bankers will complain that the farmers’ tractors are blocking the roads to their country villas.

The Germans and British elite will urge their ‘little Napoleon’ to hold firm, for fear the ‘French contagion’ might spread to their somnolent workers.

On the one hand, Macron’s successful decree can open the way for a transformation of capital-labor relations into a modern 21st century corporate state.

On the other, a successful general strike can open the door to a Europe-wide revolt. Macron’s enigmatic (and meaningless) slogan ‘neither right nor left’ is now exposed: He is the “Bonaparte of the Bourse”!

May 21, 2017 Posted by | Corruption, Deception, Economics | , , , | Leave a comment

Corporate Democrats Use Public Option to Derail Push for Single Payer

Single Payer Action | May 2, 2017

The corporate Democrats are using the public option to derail the newly energized movement to single payer.

The single payer movement is halfway to passing single payer in the House of Representatives.

One hundred and nine members of the House, out of a total of 218 needed for passage, have signed on the HR 676, the House single payer bill.

And single payer remains the hot topic at Congressional town halls meetings.

But the dominant corporate wing of the Democratic Party wants nothing to do with it.

That was made clear once again last week when a number of Democrats took to the microphones to savage President Trump and his repeal and replace push.

Attending the press conference were Senators Ron Wyden (Oregon), Patty Murray (Washington), Chris Murphy (Connecticut), and House members Bobby Scott (Virginia), Cheri Bustos (Illinois), Frank Pallone (New Jersey) and Richard Neal (Massachusetts).

It was typical Democratic rhetoric – totally ignoring the 109 Democrats in the House who had signed onto single payer.

Toward the end of the press conference, the Democrats were asked whether any of them supported single payer and whether any of them would join their 109 colleagues in the House who had signed on.

None of the Democrats at the press conference came up to the microphone to support single payer, although one of them, Bobby Scott, is a co-sponsor of HR 676.

Senator Murphy, the Senator from Connecticut, home to the private health insurance industry, was the first to pull out the public option deflection.

“I understand there is another conversation happening for an ultimate replacement for the existing health care system,” Murphy said. “But we are focused on stopping this (Republican) legislation because it is a real, current threat to our constituents.”

“Speaking for myself, I’m a supporter of the public option,” Murphy said. “Giving consumers the choice to join a Medicare system or stay with private insurance is the best way to go. That’s my preference. And let people choose.”

Wyden said that “any state that wants to set up their own public option using (Obamacare section 1332) has the legal authority to do it.”

When asked whether he was opposed to single payer, Wyden said that “a number of states are trying to do single payer as well through 1332.”

“Right now, I want to get on to the business at hand, particularly to hold down prescription drug costs and hold down insurance bills,” Wyden said. “And in places where there is only one insurance choice – and there are some of those – a state could set up a public option and they could move right away to do it.”

Single payer activists weren’t buying the public option.

“I call the public option what it really is, the profiteer’s option, because it is a relief valve for the private insurers,” said Dr. Margaret Flowers of Health Over Profit. “They will keep the healthiest enrollees and the public option will attract people who need health care.”

“We can’t delay the solution to our healthcare crisis,” Flowers said. “If Democrats want public support, they need to get more active in advocating for single payer. Those who don’t will show the public that they are on the wrong side of this issue.”

Kevin Zeese of Health Over Profit said that “the Democratic Party leadership is out of touch with the majority of Democrats in the House who have signed on to HR 676 and with the super majority of their voters who support National Improved Medicare for All.”

“It’s not a surprise that Senator Wyden is representing the medical industry and not the people by introducing a public option,” Zeese said. “Senator Wyden is the ranking member of the Senate Finance Committee, the most corrupt committee in the Senate.”

May 2, 2017 Posted by | Corruption, Economics | , | Leave a comment

Trump’s Adviser and Son-in-Law Fails to Report Dealings With Soros, Goldman Sachs

Sputnik – May 2, 2017

US President Donald Trump’s senior adviser and son-in-law Jared Kushner did not disclose existing business connections with the investment firm Goldman Sachs Group Inc. and billionaires George Soros and Peter Thiel, media reported on Tuesday.

Kushner holds shares of a New York-based real-estate financial firm Cadre that works on a number of project with Goldman Sachs and prominent investors, including Soros, The Wall Street Journal reported citing securities filings.

Trump’s son-in-law also failed to report nearly $1 billion in loans from more than 20 lenders to his corporations and properties, according to the filings. Kushner’s lawyer Jamie Gorelick said his client disclosed his ownership of BFPS Ventures LLC, which is a housing company for Cadre.

Since Trump took office in January, US media and lawmakers have detailed a number of his and his family’s business dealings and possible conflicts of interest. In April, Senator Michael Bennet suggested foreign individuals, entities and governments may patronize Trump businesses to influence the White House policies.

Kushner is a former real estate developer who began advising Trump and meeting foreign leaders after the November election. He was named to an official White House position on January 9, the same day he announced he would step down as CEO of the Kushner Companies.

May 2, 2017 Posted by | Corruption, Deception | , , , | Leave a comment

Brazil’s Odebrecht Gave Argentina’s Macri US$500k For Presidential Run

teleSUR | April 30, 2017

Argentina’s President Mauricio Macri received US$500,000 from Brazil’s Odebrecht construction firm for his 2015 electoral campaign, Argentine daily La Nacion revealed on Sunday.

The donation was processed through Odebrecht’s Braksem SA branch, and appeared in Macri’s party 2015 balance record. The company defended the move as “totally legal,” saying the sum of money was for the purchase of cutlery for a fundraising dinner that Macri’s Cambiemos coalition organized in March of that year.

“Braksem belongs to Odebrecht, it’s dedicated to the petrochemical market, with a branch in Argentina,” said the paper. “The Brazilian giant’s strategy was to have this lower-profile branch’s name appear in order to avoid public exposure.”

The leak comes after Odebrecht admitted it funded the electoral campaigns of other Latin American presidents, including Colombia’s current President Juan Manuel Santos and Peru’s former President Ollanta Humala.

Macri was also one of the main figures involved in the Panama Papers scandal after a leak from a company revealed how world leaders had thousands of offshore companies in tax havens to avoid paying taxes.

For 2015, Macri declared his fortune as being worth US$110 million to Argentina’s Anti-Corruption Office, an increase of 100 percent from the US$52 million he reported for the 2014 fiscal year. Following the Panama Papers leak, Macri admitted to having over US$18 million in tax havens.

Macri’s government has proposed a tax amnesty bill, which has been approved by the country’s congress. This controversial law is aimed to shield tax evaders who have undeclared holdings and assets while offering them lower taxes in order for them to bring assets to the country.

At Macri’s request, the law excluded any relatives of officials who have engaged in money laundering or have undeclared assets abroad from legal responsibilities, a caveat that critics say is a clear wink at his own father and siblings.

Earlier this month, polls found that Macri’s approval rate dropped to 24 percent, with 54 percent of Argentines polled saying they did not trust him.

May 2, 2017 Posted by | Corruption, Deception | , , , | Leave a comment

Confirmed: the crucial role of Chilean media mogul on US plan to overthrow Allende

Failed Evolution | April 30, 2017

Media mogul Agustin Edwards Eastman, who was widely regarded as the Rupert Murdoch of Chile, died on April 24, at age 89, leaving a legacy of close collaboration with Henry Kissinger and the CIA in instigating and supporting the September 11, 1973, military coup. Edwards was the only Chilean—civilian or military—known to meet face-to-face with CIA Director Richard Helms in September 1970 in connection with plans to instigate regime change against Socialist leader Salvador Allende, who had just been elected president.

Declassified CIA and White House documents posted today by the National Security Archive at The George Washington University show conclusively what Edwards repeatedly denied – that he and his newspaper, El Mercurio, became a critical part of U.S. plans to foment a military coup against President Allende.

National Security Archive

Key points:

  • Edwards’ extraordinary influence on U.S. policy and CIA intervention in Chile did not stop there. When CIA covert action—which included the assassination of Gen. Rene Schneider—failed to block Salvador Allende’s inauguration, the Edwards media empire became the leading clandestine collaborator in fomenting a military coup d’etat. President Nixon personally authorized covert CIA funding to sustain El Mercurio so that it could become a media megaphone of opposition, agitation and misinformation against the Allende government. In the aftermath of Allende’s overthrow, the CIA explicitly credited its media propaganda project in Chile for playing “a significant role in setting the stage for the military coup of 11 September 1973,” and continued to secretly funnel money to the Edwards group so that El Mercurio could “present the Junta in the most positive light for the Chilean public.
  • During his lengthy conversation with CIA Director Helms and one of his top aides, Kenneth Millian, Edwards not only pushed for a U.S.-backed, preemptive, coup to block the inauguration of the duly elected next president of Chile, Salvador Allende; he also provided detailed intelligence on potential coup plotters in the Chilean armed forces and discussed “timing for possible military action.” According to the CIA memorandum of conversation with Edwards, titled “Discussion of Chilean Political Situation,” they systematically reviewed the strength and coup potential of each branch of the military.
  • After the meeting with the CIA director, Edwards stayed in Washington for a number of days to continue to share more detailed information with agency officials as the CIA mobilized to implement President Nixon’s orders to orchestrate a coup. On September 18, Helms reported to Kissinger that “Further conversations and a more exhaustive debriefing are going on with Mr. Edwards right now.
  • Henry Kissinger, according to declassified transcripts of his telephone calls, attempted to arranged an ultra-secret meeting between Edwards and President Nixon. On the evening of September 14, 1970, Kissinger called Nixon’s scheduler, Stephen Bull, and requested that Edwards quietly be ushered into the Oval Office before a meeting Nixon had scheduled the next morning with the deputy chairman of the German Christian Democratic Union party, Gerhard Schroeder. “Does Edwards need more than 15 minutes?” Bull asked. “Absolutely not,” Kissinger replied. “We will schedule you from 9:15 to 10:00,” Bull stated. “In that 45 min[ute] period we will do Edwards at the beginning and then bring in Schroeder.” Kissinger asked for the Schroeder meeting to start at 9:45. To keep the Nixon-Edwards meeting secret, Kissinger then instructed Bull: “don’t let [Edwards and Schroeder] meet. Get Edwards out.
  • President Nixon personally authorized over $1 million dollars in September 1971 “to keep the paper [El Mercurio ] going.” (The initial funding amounted to the considerable sum of 67 million escudos.) CIA and White House documents show that the Edwards media group received almost $2 million in covert CIA funds between the fall 1971 and May 1972. The money was used to pay El Mercurio’s bills and debts, and cover the “monthly operating deficits” in order to assist opposition forces—El Mercurio “does help give heart to the opposition forces,” states a memo to Henry Kissinger—and to provide positive media coverage for the anti-Allende candidates in the March 1973 Congressional elections. In addition, CIA records reveal that the Edwards Group received secret funds from the ITT corporation in $100,000 increments through a Swiss bank account.
  • In May 1973, the CIA Station in Santiago identified “the El Mercurio chain of newspapers” as among “the most militant parts of the opposition” which “have set as their objective the creation of conflict and confrontation which will lead to some sort of military intervention.” The secret CIA cable continued: “Each [militant part] in its own way is trying to coordinate its efforts with members of the armed forces known to them who share this objective.” The CIA credited its “propaganda project” in which El Mercurio and the Edwards media outlets were the key actors, as having “played a significant role in setting the stage for the military coup of 11 September 1973.” According to a secret CIA post-coup report, “Prior to the coup the project’s media outlets maintained a steady barrage of anti-government criticism, exploiting every possible point of friction between the government and the democratic opposition, and emphasizing the problems and conflicts which were developing between the government and the armed forces.”
  • After the coup, El Mercurio continued to receive covert CIA funding until June 1974. The CIA determined the funds were needed to assist the newspaper’s effort to help the Pinochet regime consolidate its power. “Since the coup, these media outlets have supported the new military government. They have tried to present the Junta in the most positive light for the Chilean public,” according to a CIA request for continuing covert monies for El Mercurio. “The project is essential in enabling the [CIA] Station to help mold Chilean public opinion in support of the new government…”

Full report, documents:

http://nsarchive.gwu.edu/NSAEBB/NSAEBB587-Agustin-Edwards-left-legacy-of-collaboration-with-CIA-in-Chile-Coup/

May 2, 2017 Posted by | Corruption, Deception, Mainstream Media, Warmongering, Timeless or most popular | , , , | Leave a comment