Hey Mr. Cameron, Who’s the Extremist?
By Finian Cunningham – Sputnik – 15.10.2015
When British Prime Minister David Cameron lambasted Labour Party leader Jeremy Corbyn for having a “terrorist-sympathising, Britain-hating ideology” the rightwing British media went into raptures over the bashing.
But amid the boorish braying, the question is: what about Cameron’s own extremist-supporting politics? And not just Cameron, but the whole British establishment.Cameron made his cheap shot at Corbyn while addressing his Conservative Party annual conference last week. With the fulsome help of British media, Corbyn’s views on the death of Al Qaeda leader Osama bin Laden, as well as on foreign policy issues, including Russia, Palestine, Hezbollah and Irish republicanism, have been wildly distorted. But the crude demonisation of Corbyn as national traitor is an easy job when you have a phalanx of willing media hatchet-wielders on your side.
How richly ironic it is then that a week after Cameron’s mud-slinging at Corbyn, news emerges of a British man who is facing a death sentence in Saudi Arabia.
Karl Andree, a 74-year-old British expatriate living in the oil-rich kingdom for the past 25 years is to receive 350 lashes under the archaic Saudi justice system. The man was caught last year reportedly in possession of homemade wine — in a country where alcohol is officially forbidden.
His family in Britain are making desperate appeals to British premier David Cameron to intervene in the case to save the pensioner’s life.
Suffering from cancer and asthma, the family of Karl Andree fear that he will die from the flogging, especially after having spent a year already in a Saudi jail. A son of the man told British media this week that Cameron’s government had done little to seek clemency from the Saudi rulers. Simon Andree “accused the Foreign Office of allowing business interests to get in the way of helping to free his father.”
Cameron may be obliged to finally intervene, such is the furore. But the mere fact that London has to be pushed into doing something to save the man’s life shows just how deeply entwined the British establishment is with the House of Saud.
The case is just one of many instances where the British government has steadfastly given the Saudi rulers political cover for their extremist practices. With an estimated 30,000 political prisoners languishing in Saudi jails and over 100 people executed by public beheadings every year, the kingdom has been described as one of the most despotic regimes on Earth. Some observers have noted that the House of Saud beheads as many people as the notorious terror group, Islamic State, which shares the same Wahhabi ideology as the Saudi rulers. Indeed probably bankrolled by the Saudi monarchs, as are other extremist jihadi groups, including Al Qaeda and Jabhat al Nusra.
Yet while Cameron and his government make high-profile calls for sanctions against Russia over alleged violations in Ukraine, London keeps silent when it comes to international appeals for human rights in Saudi Arabia.
Earlier this year it emerged from leaked cables that Cameron’s government was involved in “back-room deals” with the Saudis for the kingdom to be appointed to a chair on the United Nations Human Rights Council. This is while international campaigners have recently appealed in two particularly disturbing cases, one involving a Saudi blogger sentenced to receive a 1,000 lashes and the other of a pro-democracy activist, Ali Mohammed al-Nimr, who is due to be beheaded and crucified. Labour’s Jeremy Corbyn has personally entreated Cameron to intervene — but so far, Downing Street has declined to mediate.
Cameron has gone on the defensive about British-Saudi relations, telling media that Britain has a “special relationship” with the kingdom, and insisting that it must maintain “close ties”.
The British leader never fails to pontificate to international audiences about how Britain is “supporting democracy and human rights” around the world.
Cameron’s double-think fails, spectacularly, to acknowledge that his government and Downing Street predecessors have “close ties” with the Saudi regime, where elections are banned, women are prohibited from driving cars, and freedom of speech is exercised under the pain of death.
Even as Saudi Arabia carries out more than six months of slaughter in Yemen, the British government maintains a stony silence. Evidence of war crimes involving Saudi bombing of civilians in Yemen has not registered a pause by Britain in supplying the Saudis with Tornado and Typhoon fighter jets equipped with 500-pound Pave IV missiles.Thousands of women and children have been massacred in the onslaught, while Britain reportedly finds new reserves for ordnance to sustain the Saudi bombardment, along with deadly supplies from Washington of course.
In 1985, former Conservative Prime Minister Margaret Thatcher — a political heroine of Cameron — lent her personal intervention in signing the al Yamamah arms deal between Saudi Arabia and Britain.
That ongoing deal — worth an estimated £80 billion ($120 billion) — is the biggest weapons contract ever signed by Britain. A reputed 50,000 jobs depend on its fulfilment, mainly by Britain’s top weapons manufacturer, British Aerospace Engineering (BAE).
The contract is mired in corruption. Investigations have shown that some $1 billion in bribes were funnelled to key members of the House of Saud by BAE, including the former spy chief Bandar bin Sultan. In 2010, a US court found BAE guilty of corruption, for which the firm had to pay $400 million in fines.But Britain’s own legal probe into corruption over the Al Yamamah arms deal was dramatically blocked in 2006 by then Labour leader and Prime Minister Tony Blair. Blair, as with Cameron recently, simply invoked “national security interests” to close the prosecution. Once again, the supposed “special relationship” between Britain and Saudi Arabia trumped any concerns about criminality or the despotic nature of the House of Saud.
One factor in why Blair gave cover to Britain’s Saudi clients was the threat from the House of Saud that it would pull the plug on the whole Al Yamamah contract, and instead direct its business to France. The French-made Rafale fighter jets were dangled as an alternative to the British-made Typhoon.
Resonating with that, this week a French delegation led by Prime Minister Manuel Valls, Foreign Minister Laurent Fabius and Defence Minister Jean-Yves Le Drian was in Saudi Arabia where it signed $11 billion in contracts for various industrial and military products.
This is the same French government that cancelled the $1.3 billion Mistral helicopter ship contract with Russia over alleged — yet unproven — violations by Moscow in Ukraine.
As with the British, the French government’s high-minded claims of democracy, rule of law and human rights are nothing but cynical public relations when it comes to the altar of financial profits, no matter how “extremist” the customers are.
So, let’s re-run that clip again of David Cameron denouncing others for “extremist-sympathising ideology”. Whatever Jeremy Corbyn’s alleged views are, they are nothing, absolutely nothing, when compared with the extremist-supporting practices of David Cameron and a host of British governments in their courting of Saudi oil money.
France signs deals worth €10bn with Saudi
MEMO | October 14, 2015
France has signed deals worth €10 billion with Saudi Arabia, French Prime Minister Manuel Valls said yesterday.
Valls, who is visiting the gulf kingdom, announced the deal on his official Twitter account saying it aimed to “mobilise our companies and employment”.
Saudi King Salman Bin Abdulaziz met Valls in his palace in Riyadh yesterday.
The Saudi Press Agency said the two leaders discussed bilateral relations and ways of enhancing them as well as the latest developments in the region.
Meanwhile, French Defence Minister Jean-Yves Le Drian announced during a press conference in Riyadh that the kingdom intends to purchase 30 French naval corvettes before the end of this year. France’s foreign ministry said in a statement that the deal includes the start of negotiations to provide Saudi Arabia with its own communication and observation satellites.
Valls arrived in Saudi Arabia on Monday after a regional tour that included visiting Egypt and Jordan.
Putin and the Press: The Demonology School of Journalism
By James Petras | October 11, 2015
The major influential western print media are engaged in a prolonged, large-scale effort to demonize Russian President Putin, his politics and persona. There is an article (or several articles) every day in which he is personally stigmatized as a dictator, authoritarian, czar, ‘former KGB operative’ and Soviet-style ruler; anything but the repeatedly elected President of Russia.
He is accused of hijacking Russia from the ‘road to democracy’, as pursued by his grotesquely corrupt predecessor Boris Yeltsin; of directing the bloody repression of the ‘freedom loving Chechens’; of jailing innocent, independent, and critical oligarchs and robber barons; of fomenting an uprising in the ‘democratic, newly pro-Western’ Ukraine and seizing control of Crimea; of backing a ‘bloody tyrant’ in Syria (elected President Bashar Assad) in a civil war against ISIS terrorists; of running the Russian economy into the ground; and of militarily threatening the Baltic and Eastern European NATO member countries.
In a word, the media have propagated an image of an ‘out-of-control autocrat’, who makes a mockery of ‘democratic’ norms and ‘Western values’, and who seeks to revive the ‘Soviet (aka Evil) Empire’.
The corollary is that ‘Western powers’, despite their peace-loving propensities and fraternal attempts to bring Russia into the democratic ‘fold’, have been ‘forced’ to now surround Russia with NATO military bases and missiles; to finance a violent coup in the Ukraine (on Russia’s frontier) and arm the Ukrainian putsch government and neo-fascist militias to ‘restore democracy’ and violently suppress ethnic Russian ‘separatists’ in Eastern Ukraine. We are told that US and EU sanctions against Russia were carefully crafted ‘diplomatic’ measures designed to punish the Moscow ‘aggressor’.
In reality, the Western media has relentlessly demonized Vladimir Putin in a campaign to further NATO military expansion and undermine the Russian economy and its national security. The goal is ultimately to force a ‘regime change’, restoring the neo-liberal elites who had pillaged Russia’s economy during the 1990s and whose brutal economic policies led to the premature death of over 6 million Russians due to deprivation and the collapse of the healthcare system.
Putin: Demon or Realist, Autocrat or Democrat, Vassal or Independent Leader?
The Western media has backed every oligarch, gangster, and fraudster who has gone on trial and been convicted during Putin’s term in office. The propagandists tell us the reason for this affinity between the Western media and the gangster-oligarchs is that these convicted felons, who claim to be ‘political dissidents’ and critics of Putin’s rule, have been dispossessed, and jailed for upholding ‘Western values’.
The Western media conveniently ignore the well-documented studies on the source of the gangster-oligarchs’ wealth: The violent and illegal seizure of multi-billion dollars-worth of natural resources (aluminum, oil and gas), banks, factories, pension funds and real estate. During the Yeltsin period the oligarchs controlled thousands of armed gangsters and engaged in internal warfare during which thousands were killed, including top government regulators, police officials and journalists who dared to oppose or expose their pillage and property grabs.
Putin’s prosecution of a mere fraction of the most notorious oligarch-gangsters has won the support of the vast majority of Russian citizens because it represents a return to law and order and the return of stolen public wealth.
Only the Western media has dared to refer to these convicted felons as ‘political victims and reformers’. They did so because the oligarchs had become the most loyal and submissive assets in the US and EU governments’ efforts to convert Russia into an irreversibly weak vassal state.
The Western media constantly refer to President Putin as the ‘authoritarian ruler’, despite the fact that he has been repeatedly elected by large majorities in competitive elections against Western backed and funded candidates. His popularity is attested to by opinion polls conducted by Western agencies.
In 2015, President Putin’s support soared to over 85%. The pro-Western Russian neo-liberal politicians scored in the low single digits according to the same independent polls.
Clearly the Russian public does not want to return to the poverty and chaos of the Western-backed gangster politics of the 1990s.
Whatever reservations working and middle class Russians have over President Putin’s style of decision-making, they clearly value his crackdown on gangster-controlled elections, Chechen terrorism, and his restoration of Russian military defense of its frontiers, including the annexation of Crimea, following the US-engineered coup in Ukraine.
Every day, the Western media recycle reports of the ‘decline and demise’ of the Russian economy, blaming ‘statist’ mismanagement of the economy by Putin. They claim ‘declining living standards’, the ‘negative growth’ of the economy and the ‘growing isolation’ of an ‘expansionist’ Russia in the face of Western sanctions.
These media claims are laughable. Readily available data demonstrate that living standards of the vast majority of Russian citizens have significantly increased under President Putin’s administration, especially after the utter collapse under the free marketers of the 1990s. Russian workers receive their pay, pensioners their pensions, enterprises their loans – on time. During the ‘free market’ days of Boris Yeltsin, workers went up to a year without pay, pensioners were selling their heirlooms in the street to survive and enterprises paid extortionate interest rates to oligarch-gangster controlled banks! Comparative data, easily obtained, are deliberately ignored by the mass media because it doesn’t fit the demonological narrative.
The mass media present the neo-liberal ‘opposition’ and ‘liberal critics’ as Russian democrats defending ‘Western values’. They forget to mention that these ‘liberal critics’ have been directly funded by Western foundations (National Endowment for Democracy, Soros Foundation, etc.) and Russian non-governmental organizations (NGO’s) with longstanding ties to US and EU governments, intelligence agencies and exiled Russian billionaires. The so-called ‘Russian’ democratic opposition revealed their abject servility to Western interests when they openly supported the Ukrainian coup and Kiev’s bloody assault on ethnic Russian-Ukrainians in the eastern ‘Donbas’ regions of Donetsk, Luhansk and Odessa. Whatever shreds of respectability and credibility the ‘democratic opposition’ retained with the Russian public, up to that point, was lost. They were seen for what they are: propaganda arms of Western imperialism and mouth-pieces for neo-fascists.
The Western mass media charge Putin’s government with the same crimes that their own governments commit. After the US State Department’s Victoria Nuland admitted to channeling $5 billion to fund the 2014 coup in Ukraine and after the Polish regime boasted of training far right street fighters, whose mob violence served as a pretext for the coup, and after neo-fascist coalition partners in Odessa of burned alive four dozen ethnic Russian-Ukrainian citizens opposed to the coup, the Western mass media accused Putin of ‘intervening’ in Ukraine. This was because Russia had convoked a referendum in Crimea, in which over 80% of the electorate voted to secede from the illegitimate Ukrainian coup regime and rejoin Russia.
In truth, the Putin government is a victim of the Western power grab in the Ukraine, with Russia having to absorb hundreds of thousands of ethnic Russian refugees driven out of the Donbas, yet the Western media portray Putin as the executioner. Meanwhile the Western coup-makers and their far-right allies are depicted as victims… forced to bomb and decimate the Donbas region.
The charade continued. The Western media portray the subsequent punitive, economic sanctions imposed by the expansionist US and EU on Russia as a result of Putin’s ‘aggression’, referring to Russia’s defense of Crimea’s self-determination and the rights of the millions of bilingual ethnic Russian citizens of Ukraine.
The absurdity and convoluted nature of Western demonological propaganda has reached new even more bizarre heights with their hysteria against Russia’s military support of the secular Syrian government against ISIS and other jihadi terrorists.
The Western mass media have launched a global campaign charging that the Russian air force bombs ‘non-ISIS military bases’, presumably the bases of Western-backed ‘friendly’ jihadi terrorists. This ridiculous ‘reportage’ and its accompanying ‘photos’ were published before the Russian air strikes even took place!!
Apparently timing doesn’t matter in Washington’s ‘alternative universe of lies’!
NATO passed its political line to the media that Russian support for the legitimate regime of President Assad must be discredited; that the Russian presence is ‘provocative’ and responsible for ‘creating tensions’ in the region – after years of Western-sponsored jihadi terrorism against Syria!
Obedient to its masters, the Western media breathlessly ‘reported’ that the Russians were ‘really’ engaged in Syria in order destroy the pro-Western ‘fighters’, leaving ISIS alone.
No credible evidence for this propaganda was ever presented. They trotted out aerial photos of wreckage, which had likely been lifted from previous US bombings.
The media’s clumsy execution of the Pentagon’s line managed to embarrass even the US Secretary of Defense, Ashton Carter, who backed off of such claims and called for an explanation from Russia. Even Secretary Kerry, who now seeks to secure Putin’s military support for the US against ISIS while withdrawing Russia’s political backing of President Assad, has cautioned the media to modify its line, now that the US favors ‘greater coordination’ with Russia — but under US leadership. The media has recently conformed to this line, although it has not managed to explain how Washington could now work with the demonic President Putin.
Conclusion
Western media is engaged in an intense long-term propaganda campaign to demonize President Putin. Its role is to convince world public opinion and world leaders to blindly follow the US and EU, as well as their ‘allies’ and vassal states, in a campaign to degrade and undermine Russia, and consolidate a unipolar empire under US tutelage.
The Western mass media is important; but it must be remembered that the media is an instrument of imperial state power. Its lies and fabrications, its demonization of leaders, like President Putin, are one part of a global military offensive to establish dominance and to destroy adversaries.
The more intense the imperial campaign, the riskier the power grab, the greater the need to demonize the victims.
This explains how the escalation of the rabid anti-Putin propaganda campaign coincides with the single biggest Western power grab — the Ukraine coup (‘regime change’) — since West Germany annexed East Germany, and NATO and the EU incorporated the Baltic States, Eastern Europe and the Balkans into the West’s strategic alliance. The West’s bloody break-up of the Yugoslav federation was part of this strategic program.
The problem with the Western demonization of adversaries, whether it is Russia, Iran and China today, or earlier Cuba, Libya and Yemen in the past, is that Washington and the EU face severe economic crises at home and military defeats abroad by armed Islamic and nationalist resistance movements.
The US had invested hundreds of billions of dollars to prop up a shaky puppet regime in US-occupied Iraq, yet the US-trained and supplied Iraqi Army fled as the Baathist-Islamist ‘ISIS’ quickly over-ran half the country.
US troops have occupied Afghanistan for fourteen years, losing tens of thousands of lives and limbs and yet the nationalist-Islamist Taliban can easily take over Afghanistan’s third largest city, Kunduz (population 300,000), and occupies three quarters of the rest of the countryside.
Libya and Somalia are a disaster. And still Washington allocates a half billion dollars to train pro-Western mercenaries to overthrow Syria’s President Assad – mercenaries who give up their arms or join ISIS the moment they cross the border from Jordan or Turkey. The US trained mercenaries have handed over untold millions of dollars worth of heavy and light weapons and armored carriers to ISIS and Al Qaeda. The EU and the US face the dismal reality that Libya, Somalia and Syria are over-run by anti-Western Islamic fighters.
In Asia, China is demonized in the Western media, portrayed as being on the verge of collapse, facing a hard landing, even as China grows at 7%. The Western media wring their collective hands over the crisis in China while Beijing finances two new international development banks for $100 billion, raises its contribution to the IMF and brings 50 countries, including most of the EU but minus the US and Japan, into a new infrastructure lending institution.
Two big questions face the US and EU:
Why do the Western media launch a campaign of demonization that doesn’t correspond to reality? What is the goal of such demonization, which objectively undermines the possibility of forming tactical alliances to end the US’ military losses, political defeats and diplomatic isolation? The US needs Russia to defeat ISIS.
For Moscow, the fight against ISIS is crucial to Russian national security: thousands of Chechen terrorists (some trained by the US) are fighting with ISIS and threaten to return to the Caucuses and terrorize Russia. Unlike the US public’s opposition to Washington’s role in forcing ‘regime change’ in Syria, the Russian public supports Moscow’s military support for the Syrian government because the Chechens’ campaign of terror within Russia, especially the 2004 massacre of hundreds of school children, teachers, and parents in Beslan, is seared into their memory – a fact conveniently ignored by Western media when it ‘sympathizes’ with Chechen ‘freedom fighters’.
In reality, Washington should have a common interest to ally with Russia in the fight against ISIS in Syria and Iraq. However Obama is committed to ousting Assad (Russia’s ally) to expand US dominance in the Middle East in partnership with Israel and Saudi Arabia. Clearly there are insurmountable contradictions between short-term military objectives (fighting ISIS) and strategic imperial political imperatives (consolidating US-Israeli hegemony over the Middle East and Iran).
Washington has moved to end its isolation in Latin America by re-establishing diplomatic relations with Cuba. Meanwhile, Washington retains the economic blockade of Cuba and its huge US military base in Guantanamo. Cuba is seen as a tactical political ally in ‘moderating’ the leftist government of Venezuela and pressuring the Colombian FARC to disarm, even as Washington deepens its military presence in the continent.
Obama signed off on a nuclear agreement with Iran (but the crippling sanctions and blockade remain in place) in order to secure Tehran’s support for the war against ISIS in Iraq and the Taliban in Afghanistan. Temporarily, the Western mass media has ‘toned-down’ its demonological reporting on Iran and Cuba, for tactical purposes.
The Obama regime has adopted a ‘good cop/bad cop’ (or schizophrenic) posture with Russia on Syria – Secretary of State John Kerry speaks of joint co-operation with Moscow while Secretary of Defense Ashton Carter proposes to militarily confront ‘Russian aggression’. The media hasn’t made the switch because they don’t know which orders to obey or which line to ‘parrot’.
In the meantime, the domestic economic crisis deepens, ISIS advances, the Taliban approaches Kabul, the Russians are arming and defending President Assad and millions of refugees, fleeing the war zones, have over- run Europe. European border wars are raging. And Obama wrings his hands in impotence. Demonology offers no allies, no solutions and no positive path to peace and co-existence.
US Hedge Fund Threatens Peru over Military Regime’s Debt
teleSUR | October 10, 2015
A U.S. hedge fund is threatening to sue Peru for payment of US$5.1 billion in unpaid bonds issued by the country’s former military government.
The fund, Gramercy, purchased the defaulted debt in 2008 for pennies on the dollar and is now demanding full repayment.
The tactic is similar to one employed by another U.S. hedge fund, Elliot Management, which has tried to use the U.S. legal system to compel the government of Argentina to repay the full amount of its own defaulted bonds.
“It’s ironic that this threat is coming amidst global meetings in Peru that continue to try and stop this kind of predatory behavior,” said Jubilee USA executive director Eric LeCompte, referring to the annual meetings of the World Bank and International Monetary Fund currently taking place in Lima.
Firms that try to collect defaulted debt in this manner are disparagingly referred to as “vulture funds.”
Gramercy is specifically threatening to sue Peru through a tribunal system known as the Investor State Dispute Settlement mechanism, or ISDS.
Peru’s finance minister, Alonso Segura, said on Friday that the government would oppose any legal action outside its borders. “That’s not going to happen,” he said. “This issue will be dealt with by Peruvian laws.”
The ISDS is comprised of special legal tribunals, often established through “free trade” agreements, that allow corporations in one country to collect on debts in another. Critics argue the system prevents country’s from overcoming crippling debts—in Peru’s case, debts incurred by an unelected military regime.
An ISDS-style trade tribunal is reportedly part of the recently signed Trans-Pacific Partnership, which includes Peru and 11 other Pacific Rim nations.
As an alternative to the ISDS, the Union of South American Nations is currently reviewing a proposal to establish a regional Arbitration Center, which would analyze and propose mechanisms to reform arbitration proceedings that could take into account the broader needs of the society and continent as a whole.
Ukrainian Finance Minister: $40 Bln in Assistance Not Enough
Sputnik – 11.10.2015
Finance Minister Natalia Yaresko considers a $40 billion assistance program from the IMF not enough to guarantee Ukraine’s economic stability in the long-term.
In an interview with the Financial Times, Yaresko called for the United States, the EU and other loaners to double financial assistance to the conflict-torn state in 2016.
“Ukraine did everything possible to show its international partners that we do our best and that we are able to live up to our promises,” she explained. “I think it means that international partners should unanimously support us.”
Kiev’s government has won praise from the IMF and sponsors such as the US for making significant progress in implementing economic reforms, although the fund still expects the Ukrainian economy to contract 11 percent this year.
Still, Yaresko said the government needs more financial aid from the international community “to help finance infrastructure and other investment and demonstrate progress to its own citizens.”
Yaresko also announced that Kiev is not going to offer any special conditions to Russia over a $3 billion debt expected to be repaid by December 2015. The Finance Minister insisted on restructuring the debt under the terms of an agreement reached with other creditors in summer.
A four-year $17.5-billion assistance package to Ukraine was approved by the IMF on March 11 in an effort to put the country’s ailing economy on the path of recovery. The overall external financial aid package to Kiev amounts to about $40 billion, to be administered over the next four years and comprising loans from the International Monetary Fund, the United States and the European Union among others.
This year Ukraine already received $6,7 billion from 10 billion allocated for 2015.
TPP: Big Pharma’s Big Deal
By Joyce Nelson | CounterPunch | October 7, 2015
We still don’t know all the details of the Trans-Pacific Partnership (TPP) trade deal tentatively agreed to on Oct. 5 by negotiators from 12 Pacific Rim countries, but already critics are slamming it for many reasons, including its generous concessions to the pharmaceutical industry.
Doctors Without Borders claims the TPP will “go down in history as the worst trade agreement for access to medicines in developing countries.” [1] That’s because the TPP will extend patent protection for brand-name drugs, thereby preventing similar generic drugs (which are far less costly) from entering the market. This will drive up the prices.
Judit Rius Sanjuan, legal policy adviser for Doctors Without Borders, told vox.com that TPP creates patent-related obligations in countries that never had them before. People in “Peru, Vietnam, Malaysia, and Mexico” will be especially affected, she said. “They’ll face higher prices for longer periods of time.” [2]
Ruth Lopert, a professor at George Washington University, told Bloomberg News that provisions in the TPP agreement will affect health-care budgets and drug access in all signatory countries, but especially the poorest. “She said as many as 40,000 people in Vietnam, the poorest country in the agreement, could stop getting drugs to fight HIV because of provisions that will boost the price of [pharmaceutical] therapy.” [3]
Other countries like Canada will also be hit with higher costs. The Council of Canadians says that if the TPP is ratified, “[p]harmaceutical patents will be extended, delaying the release of more affordable generic drugs and adding $2 billion to our annual public health care bill.” [4] In the U.S., many people already cannot afford to pay for the expensive medicines that could save their lives, and they try to access generics available elsewhere.
Extending patent rights for life-saving drugs is an obvious gift to Big Pharma. Conor J. Lynch at opendemocracy.net has called it “a clear corporate handout that would greatly affect international access and most definitely cause preventable deaths. The clear objective here is to increase industry profits, plain and simple. This is not surprising, that’s what private industry does, but there is a serious moral dilemma here.” [5] That moral dilemma is made even more apparent by recent findings.
Tax Cheats
In an ironic coincidence, the TPP agreement was reached on the same day that a damning report on corporate tax-avoidance – Offshore Shell Games 2015 – was released by Citizens for Tax Justice and the US Public-Interest Research Group Education Fund. The report reveals the extent to which top U.S. companies use tax havens like Bermuda, Luxembourg, Cayman Islands, and the Netherlands to set up “tax haven subsidiaries” that are usually little more than a post-office box.
Of the top 30 Fortune 500 companies with the most money held in offshore tax-havens, nine are pharmaceutical companies: Pfizer ($74 billion held offshore), Merck ($60 billion), Johnson & Johnson ($53.4 billion), Proctor & Gamble ($45 billion), Amgen ($29.3 billion), Eli Lilly ($25.7 billion), Bristol Myers Squibb ($24 billion), AbbeVie Inc. ($23 billion), and Abbott Laboratories ($23 billion). [6]
Concerning Pfizer, the world’s largest drug maker (declared profits of $22 billion in 2013), the report states: “The company made more than 41 percent of its sales in the U.S. between 2008 and 2014, but managed to report no federal taxable income for seven years in a row. This is because Pfizer uses accounting techniques to shift the location of its taxable profits offshore. For example, the company can transfer patents for its drugs to a subsidiary in a low- or no-tax country. Then when the U.S. branch of Pfizer sells the drug in the U.S., it ‘pays’ its own offshore subsidiary high licensing fees that turn domestic profits into on-the-books losses and shifts profit overseas.”
Overall, the study found that the 500 largest U.S. companies hold more than US$2.1 trillion in accumulated profits offshore. “For many companies, increasing profits held offshore does not mean building factories abroad, selling more products to foreign customers, or doing any additional real business activity in other countries,” but simply establishing a PO box.
Some companies use the money supposedly “trapped” offshore as “implied collateral” in order to borrow funds at negligible rates for investing in U.S. assets, paying dividends to shareholders, or repurchasing stock.
Of course, as the report makes clear, “Congress, by failing to take action to end this tax avoidance, forces ordinary Americans to make up the difference. Every dollar in taxes that corporations avoid by using tax havens must be balanced by higher taxes on individuals, cuts to public investments and public services, or increased federal debt.”
The report finds that, through a variety of tax-avoidance measures, an estimated US$620 billion in U.S. taxes is collectively owed by the 500 largest companies with headquarters in the U.S.
Corporate Coup
Now the TransPacific Partnership – which is being called “NAFTA on steroids” – would award Big Pharma and other multinationals even more corporate “rights” in more countries, including the controversial investor-state dispute settlement (ISDS) mechanism by which they can sue signatory governments for regulatory changes that affect their profits.
As the Canadian website rabble.ca notes: “The Canadian government is currently being sued through NAFTA by Eli Lilly, an American pharmaceutical company, for invalidating the firm’s patent extensions on two mental health drugs. A Canadian Federal Court decided in 2010 that the patent extensions had not delivered the promised benefits and the drugs should therefore be opened up to generic competition. Generic drugs significantly reduce the cost for end users, but Eli Lilly cried foul and launched an ISDS claim against the government, demanding US$500 million in compensation for lost profits. The case is still in progress, but regardless of the outcome we can expect the TPP to lead to similar ISDS disputes. Powerful multinational pharmaceutical companies will use any available means to cling to over-priced drug monopolies. Greater intellectual property protections in the TPP will give these companies an even stronger quasi-legal basis to sue governments and crowd out generic [drug] competition.” [7]
The final text of the TransPacific Partnership agreement won’t be available for at least a month, likely weeks after the Canadian federal election on October 19. The details will undoubtedly reveal more generous concessions to the multinationals. It will be up to the elected legislators in all twelve countries to approve or reject the TPP. In Canada, NDP leader Tom Mulcair has pledged to scrap the deal if elected as Prime Minister, explaining that the Stephen Harper government had no mandate to sign it during an election campaign when it is merely a “caretaker” government.
The U.S. website zerohedge.com calls the Trans-Pacific Partnership “a Trojan horse” and “a coup by multinational corporations who want global subservience to their agenda.” In no uncertain terms, it adds: “Buyer beware. Citizens beware.” [8]
Footnotes/Links:
[2] Julia Belluz, “How the Trans-Pacific Partnership could drive up the cost of medicine worldwide,” Vox, October 5, 2015.
http://www.vox.com/2015/10/5/9454511/tpp-cost-medicine
[3] “Pacific Deal Rewrites Rules on Trade in Autos, Patented Drugs,” Bloomberg News, October 5, 2015.
http://www.bloomberg.com/news/articles/2015-10-05/pacific-deal-rewrites-rules-on-trade-in-autos-patented
[4] Council of Canadians, “Tell party leaders: Reject the TPP,” October 6, 2015.
[5] Conor J. Lynch, “Trans-Pacific Partnership’s Big Pharma giveaway,” Open Democracy, February 14, 2015.
http://www.opendemocracy.net/conor-j-lynch/transpacific-partnership%E2/80%/99s-big-pharma-giveaway
[6] http://ctj.org/ctjreports/2015/10/orrshore_shell_games_2015.php//executive
[7] Hadrian Mertins-Kirkwood, “Trans-Pacific Partnership a big win for corporate interests,” Rabble.ca, October 6, 2015.
[8] Tyler Durden, “Trans-Pacific Partnership Deal Struck As ‘Corporate Secrecy’ Wins Again,” Zero Hedge, October 5, 2015.
http://www.zerohedge.com
US Tax Dollars and Ukraine’s Finance Minister
By Robert Parry | Consortium News | October 3, 2015
The U.S. government is missing – or withholding – audit documents about the finances and possible accounting irregularities at a $150 million U.S.-taxpayer-financed investment fund when it was run by Ukraine’s Finance Minister Natalie Jaresko, who has become the face of “reform” for the U.S.-backed regime in Kiev and who now oversees billions of dollars in Western financial aid.
Before taking Ukrainian citizenship and becoming Finance Minister in December 2014, Jaresko was a former U.S. diplomat who served as chief executive officer of the Western NIS Enterprise Fund (WNISEF), which was created by Congress in the 1990s with $150 million and placed under the U.S. Agency for International Development (USAID) to help jumpstart an investment economy in Ukraine.
After Jaresko’s appointment as Finance Minister — and her resignation from WNISEF — I reviewed WNISEF’s available public records and detected a pattern of insider dealings and enrichment benefiting Jaresko and various colleagues. That prompted me in February to file a Freedom of Information Act request for USAID’s audits of the investment fund.
Though the relevant records were identified by June, USAID dragged its feet on releasing the 34 pages to me until Aug. 28 when the agency claimed nothing was being withheld, saying “all 34 pages are releasable in their entirety.”
However, when I examined the documents, it became clear that a number of pages were missing from the financial records, including a total of three years of “expense analysis” – in three-, six- and nine-month gaps – since 2007. Perhaps even more significant was a missing paragraph that apparently would have addressed an accounting irregularity found by KPMG auditors.
KPMG’s “Independent Auditors’ Report” for 2013 and 2014 states that “except as discussed in the third paragraph below, we conducted our audits in accordance with auditing standards generally accepted in the United States of America,” accountant-speak that suggests that “the third paragraph below” would reveal some WNISEF activity that did not comply with generally accepted accounting principles (or GAAP).
But three paragraphs below was only white space and there was no next page in what USAID released.
Based on the one page that was released for 2013-14, this most recent audit also lacked the approval language used in previous audits, in which KPMG wrote: “In our opinion, the consolidated financial statements … present fairly, in all material respects, the consolidated financial position of Western NIS Enterprise Fund and subsidiaries.” That language was not in the 2013-14 analysis, as released by USAID.
The KPMG report for 2013-14 does note that “The [audit] procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. … An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.”
That page then ends, “We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.” But the opinion is not there.
After I brought these discrepancies to the attention of USAID on Aug. 31, I was told on Sept. 15 that “we are in the process of locating documents to address your concern. We expect a response from the bureau and/or mission by Monday, September 28, 2015.”
After the Sept. 28 deadline passed, I contacted USAID again and was told on Oct. 2 that officials were “still working with the respective mission to obtain the missing documents.”
Yet, whether USAID’s failure to include the missing documents was just a bureaucratic foul-up or a willful attempt to shield Jaresko from criticism, the curious gaps add to the impression that the management of WNISEF fell short of the highest standards for efficiency and ethics.
A previous effort by Jaresko’s ex-husband Ihor Figlus to blow the whistle on what he considered improper business practices related to WNISEF was met by disinterest inside USAID, according to Figlus, and then led to Jaresko suing him in a Delaware court in 2012, using a confidentiality clause to silence Figlus and getting a court order to redact references to the abuses he was trying to expose.
Feeding at the Taxpayer Trough
Other public documents indicate that Jaresko and fellow WNISEF insiders enriched themselves through their association with the U.S.-taxpayer-financed investment fund. For instance, though Jaresko was limited to making $150,000 a year at WNISEF under the USAID grant agreement, she managed to earn more than that amount, reporting in 2004 that she was paid $383,259 along with $67,415 in expenses, according to WNISEF’s filing with the Internal Revenue Service.
Among the audit documents that I received under FOIA, the “Expense Analysis” for 2004 shows $1,282,782 being paid out as “Exit-based incentive expense-equity incentive plan” and another $478,195 being paid for “Exit-based incentive expense-financial participation rights.” That would suggest that Jaresko more than doubled her $150,000 salary by claiming bonuses from WNISEF’s investments (bought with U.S. taxpayers’ money) and sold during 2004.
Jaresko’s compensation for her work with WNISEF was removed from public disclosure altogether after she co-founded two related entities in 2006: Horizon Capital Associates (HCA) to manage WNISEF’s investments (and collect around $1 million a year in fees) and Emerging Europe Growth Fund (EEGF), a private entity to collaborate with WNISEF on investment deals.
Jaresko formed HCA and EEGF with two other WNISEF officers, Mark Iwashko and Lenna Koszarny. They also started a third firm, Horizon Capital Advisors, which “serves as a sub-advisor to the Investment Manager, HCA,” according to WNISEF’s IRS filing for 2006.
According to the FOIA-released expense analyses for 2004-06, the taxpayer-financed WNISEF spent $1,049,987 to establish EEGF as a privately owned investment fund for Jaresko and her colleagues. USAID apparently found nothing suspicious about these tangled business relationships despite the potential conflicts of interest involving Jaresko, the other WNISEF officers and their affiliated companies.
For instance, WNISEF’s 2012 annual report devoted two pages to “related party transactions,” including the management fees to Jaresko’s Horizon Capital ($1,037,603 in 2011 and $1,023,689 in 2012) and WNISEF’s co-investments in projects with the EEGF, where Jaresko was founding partner and chief executive officer. Jaresko’s Horizon Capital managed the investments of both WNISEF and EEGF.
From 2007 to 2011, WNISEF co-invested $4.25 million with EEGF in Kerameya LLC, a Ukrainian brick manufacturer, and WNISEF sold EEGF 15.63 percent of Moldova’s Fincombank for $5 million, the report said. It also listed extensive exchanges of personnel and equipment between WNISEF and Horizon Capital. But it’s difficult for an outsider to ascertain the relative merits of these insider deals — and the transactions apparently raised no red flags for USAID officials, nor during that time for KPMG auditors.
Bonuses, Bonuses
Regarding compensation, WNISEF’s 2013 filing with the IRS noted that the fund’s officers collected millions of dollars in more bonuses for closing out some investments at a profit even as the overall fund was losing money. According to the filing, WNISEF’s $150 million nest egg had shrunk by more than one-third to $94.5 million and likely has declined much more during the economic chaos that followed the U.S.-backed coup in February 2014.
But prior to the coup and the resulting civil war, Jaresko’s WNISEF was generously spreading money around to various insiders. For instance, the 2013 IRS filing reported that the taxpayer-financed fund paid out as “expenses” $7.7 million under a bonus program, including $4.6 million to “current officers,” without identifying who received the money although Jaresko was one of the “current officers.”
WNISEF’s filing made the point that the “long-term equity incentive plan” was “not compensation from Government Grant funds but a separately USAID-approved incentive plan funded from investment sales proceeds” – although those proceeds presumably would have gone into the depleted WNISEF pool if they had not been paid out as bonuses.
The filing also said the bonuses were paid regardless of whether the overall fund was making money, noting that this “compensation was not contingent on revenues or net earnings, but rather on a profitable exit of a portfolio company that exceeds the baseline value set by the board of directors and approved by USAID” – with Jaresko also serving as a director on the board responsible for setting those baseline values.
Another WNISEF director was Jeffrey C. Neal, former chairman of Merrill Lynch’s global investment banking and a co-founder of Horizon Capital, further suggesting how potentially incestuous these relationships may have become.
Though compensation for Jaresko and other officers was shifted outside public view after 2006 – as their pay was moved to the affiliated entities – the 2006 IRS filing says: “It should be noted that as long as HCA earns a management fee from WNISEF, HCA and HCAD [the two Horizon Capital entities] must ensure that a salary cap of $150,000 is adhered to for the proportion of salary attributable to WNISEF funds managed relative to aggregate funds under management.”
But that language would seem to permit compensation well above $150,000 if it could be tied to other managed funds, including EEGF, or come from the bonus incentive program. Such compensation for Jaresko and the other top officers was not reported on later IRS forms despite a line for earnings from “related organizations.” Apparently, Horizon Capital and EEGF were regarded as “unrelated organizations” for the purposes of reporting compensation.
The KPMG auditors also took a narrow view of compensation only confirming that no “salary” exceeded $150,000, apparently not looking at bonuses and other forms of compensation.
Neither AID officials nor Jaresko responded to specific questions about WNISEF’s possible conflicts of interest, how much money Jaresko made from her involvement with WNISEF and its connected companies, and whether she had fully complied with IRS reporting requirements.
Gagging an Ex-Husband
In 2012, when Jaresko’s ex-husband Figlus began talking about what he saw as improper loans that Jaresko had taken from Horizon Capital Associates to buy and expand her stake in EEGF, the privately held follow-on fund to WNISEF, Jaresko sent her lawyers to court to silence him and, according to his lawyer, bankrupt him.
The filings in Delaware’s Chancery Court are remarkable not only because Jaresko succeeded in getting the Court to gag her ex-husband through enforcement of a non-disclosure agreement but the Court agreed to redact nearly all the business details, even the confidentiality language at the center of the case.
Since Figlus had given some of his information to a Ukrainian journalist, Jaresko’s complaint also had the look of a leak investigation, tracking down Figlus’s contacts with the journalist and then using that evidence to secure the restraining order, which Figlus said not only prevented him from discussing business secrets but even talking about his more general concerns about Jaresko’s insider dealings.
The heavy redactions make it hard to fully understand Figlus’s concerns or to assess the size of Jaresko’s borrowing as she expanded her holdings in EEGF, but Figlus did assert that he saw his role as whistle-blowing about improper actions by Jaresko.
In a Oct. 31, 2012, filing, Figlus’s attorney wrote that “At all relevant times, Defendant [Figlus] acted in good faith and with justification, on matters of public interest, and particularly the inequitable conduct set forth herein where such inequitable conduct adversely affects … at least one other limited partner which is REDACTED, and specifically the inequitable conduct included, in addition to the other conduct cited herein, REDACTED.”
The defendant’s filing argued: “The Plaintiffs’ [Jaresko’s and her EEGF partners’] claims are barred, in whole or in part, by public policy, and particularly that a court in equity should not enjoin ‘whistle-blowing’ activities on matters of public interest, and particularly the inequitable conduct set forth herein.” But the details of that conduct were all redacted.
In a defense brief dated Dec. 17, 2012 [see Part One and Part Two], Figlus expanded on his argument that Jaresko’s attempts to have the court gag him amounted to a violation of his constitutional right of free speech:
“The obvious problem with the scope of their Motion is that Plaintiffs are asking the Court to enter an Order that prohibits Defendant Figlus from exercising his freedom of speech without even attempting to provide the Court with any Constitutional support or underpinning for such impairment of Figlus’ rights.
“Plaintiffs cannot do so, because such silencing of speech is Constitutionally impermissible, and would constitute a denial of basic principles of the Bill of Rights in both the United States and Delaware Constitutions. There can be no question that Plaintiffs are seeking a temporary injunction, which constitutes a prior restraint on speech. …
“The Court cannot, consistent with the Federal and State Constitutional guarantees of free speech, enjoin speech except in the most exceptional circumstances, and certainly not when Plaintiffs are seeking to prevent speech that is not even covered by the very contractual provision upon which they are relying. Moreover, the Court cannot prevent speech where the matter has at least some public interest REDACTED, except as limited to the very specific and exact language of the speaker’s contractual obligation.”
A Redacted Narrative
Figlus also provided a narrative of events as he saw them as a limited partner in EEGF, saying he initially “believed everything she [Jaresko] was doing, you know, was proper.” Later, however, Figlus “learned that Jaresko began borrowing money from HCA REDACTED, but again relied on his spouse, and did not pay attention to the actual financial transactions…
“In early 2010, after Jaresko separated from Figlus, she presented Figlus with, and requested that he execute, a ‘Security Agreement,’ pledging the couple’s partnership interest to the repayment of the loans from HCA. This was Figlus first realization of the amount of loans that Jaresko had taken, and that the partnership interest was being funded through this means. … By late 2011, Jaresko had borrowed approximately REDACTED from HCA to both fund the partnership interest REDACTED. The loans were collateralized only by the EEFG partnership interest. …
“Figlus became increasingly concerned about the partnership and the loans that had been and continued to be given to the insiders to pay for their partnership interests, while excluding other limited partners. Although Figlus was not sophisticated in these matters, he considered that it was inappropriate that HCA was giving loans to insiders to fund their partnership interests, but to no other partners. …
“He talked to an individual at U.S. Agency for International Development (USAID) in Washington D.C., because the agency was effectively involved as a limited partner because of the agency’s funding and supervision over WNISEF, but the agency employee did not appear interested in pursuing the question.”
In the court proceedings, Jaresko’s lawyers mocked Figlus’s claims that he was acting as a whistle-blower, claiming that he was actually motivated by a desire “to harm his ex-wife” and had violated the terms of his non-disclosure agreement, which the lawyers convinced the court to exclude from the public record.
The plaintiffs’ brief [see Part One and Part Two] traced Figlus’s contacts with the Ukrainian reporter whose name is also redacted: “Figlus, having previously received an audit from the General Partner, provided it to REDACTED [the Ukrainian reporter] with full knowledge that the audit was non-public. Also on or about October 2, 2012, REDACTED [the reporter] contacted multiple Limited Partners, informed them that he possessed ‘documented proof’ of alleged impropriety by the General Partner and requested interviews concerning that alleged impropriety.”
The filing noted that on Oct. 3, 2012, the reporter told Figlus that Jaresko “called two REDACTED [his newspaper’s] editors last night crying, not me, for some reason.” (The Ukrainian story was never published.)
After the competing filings, Jaresko’s lawyers successfully secured a restraining order against Figlus from the Delaware Chancery Court and continued to pursue the case against him though his lawyer has asserted that his client would make no further effort to expose these financial dealings and was essentially broke.
On May 14, 2014, Figlus filed a complaint with the court claiming that he was being denied distributions from his joint interest in EEGF and saying he was told that it was because the holding was pledged as security against the loans taken out by Jaresko. But, on the same day, Jaresko’s lawyer, Richard P. Rollo, contradicted that assertion, saying information about Figlus’s distributions was being withheld because EEGF and Horizon Capital “faced significant business interruptions and difficulties given the political crisis in Ukraine.”
The filing suggested that the interlocking investments between EEGF and the U.S.-taxpayer-funded WNISEF were experiencing further trouble from the political instability and civil war sweeping across Ukraine.
A Face of Reform
By December 2014, Jaresko had resigned from her WNISEF-related positions, taken Ukrainian citizenship and started her new job as Ukraine’s Finance Minister. In an article about Jaresko’s appointment, John Helmer, a longtime foreign correspondent in Russia, disclosed the outlines of the court dispute with Figlus and identified the Ukrainian reporter as Mark Rachkevych of the Kyiv Post.
“It hasn’t been rare for American spouses to go into the asset management business in the former Soviet Union, and make profits underwritten by the US Government with information supplied from their US Government positions or contacts,” Helmer wrote. “It is exceptional for them to fall out over the loot.”
When I contacted George Pazuniak, Figlus’s lawyer, about Jaresko’s aggressive enforcement of the non-disclosure agreement, he told me that “at this point, it’s very difficult for me to say very much without having a detrimental effect on my client.” Pazuniak did say, however, that all the redactions were demanded by Jaresko’s lawyers.
I also sent detailed questions to USAID and to Jaresko via several of her associates. Those questions included how much of the $150 million in U.S. taxpayers’ money remained, why Jaresko reported no compensation from “related organizations,” whether she received any of the $4.6 million to WNISEF’s officers in bonuses in 2013, how much money she made in total from her association with WNISEF, what AID officials did in response to Figlus’s whistle-blower complaint, and whether Jaresko’s legal campaign to silence her ex-husband was appropriate given her current position and Ukraine’s history of secretive financial dealings.
USAID press officer Annette Y. Aulton got back to me with a response that was unresponsive to my specific questions. Rather than answering about the performance of WNISEF and Jaresko’s compensation, the response commented on the relative success of 10 “Enterprise Funds” that AID has sponsored in Eastern Europe and added:
“There is a twenty year history of oversight of WNISEF operations. Enterprise funds must undergo an annual independent financial audit, submit annual reports to USAID and the IRS, and USAID staff conduct field visits and semi-annual reviews. At the time Horizon Capital assumed management of WNISEF, USAID received disclosures from Natalie Jaresko regarding the change in management structure and at the time USAID found no impropriety during its review.”
One Jaresko associate, Tanya Bega, Horizon Capital’s investor relations manager, said she forwarded my questions to Jaresko, but Jaresko did not respond.
Despite questions about whether Jaresko improperly enriched herself at the expense of U.S. taxpayers and then used a Delaware court to prevent disclosure of possible abuses, Jaresko has been hailed by the U.S. mainstream media as the face of reform in the U.S.-backed Ukrainian regime that seized power in February 2014 after a violent coup overthrew democratically elected President Viktor Yanukovych.
For instance, last January, New York Times columnist Thomas L. Friedman cited Jaresko as an exemplar of the new Ukrainian leaders who “share our values” and deserve unqualified American support. Friedman uncritically quoted Jaresko’s speech to international financial leaders at Davos, Switzerland, in which she castigated Russian President Vladimir Putin:
“Putin fears a Ukraine that demands to live and wants to live and insists on living on European values — with a robust civil society and freedom of speech and religion [and] with a system of values the Ukrainian people have chosen and laid down their lives for.”
However, from the opaqueness of the WNISEF records and the gagging of her ex-husband, Jaresko has shown little regard for transparency or other democratic values. Similarly, USAID seems more intent on protecting Jaresko and the image of the Kiev regime than in protecting America tax dollars and ensuring that WNISEF’s investments were dedicated to improving the lot of Ukrainian citizens.
Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s. You can buy his latest book, America’s Stolen Narrative, either in print here or as an e-book (from Amazon and barnesandnoble.com).
Secret Service Sought to Defame Congressman Who Was Probing Agency
Sputnik – 01.10.2015
A government watchdog report released on Wednesday contains information suggesting that an assistant director of the Secret Service wanted “embarrassing” information leaked about a congressman who was critical of the agency.
“Some information that he might find embarrassing needs to get out,” Assistant Director Edward Lowery wrote in an email to another director regarding Representative Jason Chaffetz. “Just to be fair.”
The email was sent on March 31, and two days later media outlets reported that Chaffetz had applied to be a Secret Service agent in 2003, and was rejected.
The Agency’s anger followed a House hearing on March 24 during which Chaffetz scolded Lowery as well as the Agency for their record of security lapses and misconduct.
Following the hearing, 45 Secret Service agents looked into Chaffetz’ file that was contained in a restricted database. Some of them shared the information amongst themselves.
Chaffetz’ personnel file was restricted and required to be kept private by law.
Lowery maintained during an inspector general’s probe that he was simply venting in the email and did not tell anyone to leak the private information.
Immediately following the revelation, Chaffetz released a statement condemning the agency’s actions.
“Certain lines should never be crossed,” he wrote. “The unauthorized access and distribution of my personal information crossed that line. It was a tactic designed to intimidate and embarrass me and frankly, it is intimidating. It’s scary to think about all the possible dangers in having your personal information exposed. The work of the committee, however, will continue. I remain undeterred in conducting proper and rigorous oversight.”
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From the Archives
Politicians lie
By Mazin Qumsiyeh | Popular Resistance | August 18, 2013
There is no way to say this truth nicely: Politicians lie. That includes Japanese, American, Egyptian, Israeli, and Palestinian politicians! Is there something more common sense than that? Yet, so many citizens around the world believe their own politicians or wistfully acknowledge lies but think it is part of the job needed to run things. They believe even when politicians contradict themselves blatantly. This phenomenon is rather remarkable. It is a dissonance and disconnect from reality that many seem oblivious to. It is very dangerous because it can lead to accepting rationales for going to war. These can be deadly wars that lead to millions of lives lost as happened in what was called World War 1 and WW2. Even when incredible and declassified evidence abound, politicians continue to lie and old mythologies refuse to die. Here are just a few of the countless lies told to us over the past few decades… continue
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