Developments in Africa’s intelligence sphere the last month gave rise to this separate edition of the SA Intelligencer. The Ugandan bombings impacted on the country’s intelligence service as it highlighted the unpreparedness of most countries to deal with the non-linear threats of the 21st century.

Here in South Africa, the proposed Protection of Information Bill gave rise to an unprecedented debate on our hard-earned human rights of access to information and freedom of speech. The media and civil society are urging the government to reconsider certain sections of the bill that defines “national security” and the process of classification that are most probably unconstitutional. This debate reverberates in democracies all over the world and highlights the difficulties in balancing human rights with the state’s mandate to defend the country.

Dalene Duvenage

Uganda: ripple effect of Al Qaeda attack on intelligence community

Editor integrated various sources

A month after the 11 July 2010 bombings in Kampala, pres Museveni replaced Dr Amos Mukumbi, head of the Internal Security Organisation (ISO) with his deputy Lieutenant Ronnie Barya. Security sources said that the ISO didn't adequately monitor and share intelligence information with sister agencies prior to the July 11 attacks. Dr Mukumbi, after five years as a top spy chief, is now a senior presidential adviser on special assignments.

(Continued on page 2)

Reports from August 2010

East Africa Page 1 Uganda: ripple effect of Al Qaeda attack on intelligence community Burundi, Uganda top region’s most corrupt list Sudan: Agents of fear: the National Security Service CIA training Sudan’s spies as Obama officials fight over policy Southern Africa Page 6 Botswana Security ministry under fire Former Botswana Security Minister rin court over corruption Botswana spy agency boss denies snooping Botswana: DIS slush fund claims rock BDP Botswana: DIS a smelling rat South Africa: Intelligence link in row on Lonmin mine rights South Africa: laws to give financial regulator more power Other African intel news Page 11 Nigeria Terrorism-money laundering Bill - Jonathan expresses concern over delay Libya and South Korea in conflict over rare espionage case Group promotes Egypt’s spy chief for president Upcoming events Page 13

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The Africa edition

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(Continued from page 1)

The Monitor reports on rumours of further reshuffling in the intelligence community ahead of the 2011 elections. Since the attacks, the Ugandan government has put in place a number of measures aimed at improving security, including the passing of the Regulation of Interception Bill 2007 into law on 19 July 2010.

Interception to improve intelligence gathering Government is to set up a Communication Monitoring Centre with access to all service providers' systems AllAfrica.com reports. Failure by providers to make their systems technically capable of supporting interception will lead to revocation of their licenses. Phone users will be registered. A minister or a judge of the High Court will issue warrants of interception and a higher court will arbitrate in petitions and appeals filed by those aggrieved by the interception.

Political power plays The Monitor says that the July 11 terror attacks which saw the President publicly castigate the intelligence community for failing to detect the threat, were just the perfect excuse to push a man who had refused to jump and was the handiwork of politics, intrigue and suspicion within the intelligence community and between national politicians. Inside Politics’ sources who did not want to be quoted because intelligence issues are not to be discussed openly in the media, say Dr Mukumbi’s fall from grace could be linked to the power play among senior ruling party cadres and top military chiefs.

Monitor lists various reasons why Mukumbi was replaced as ISO Chief:

• Failure to listen to his superiors – a sin in the shadowy world of security work -- especially the coordinator of Intelligence Services Gen. David Tinyefuza, Dr Mukumbi’s sacking became a matter of when, not if.

• Accusations of nursing political interests in the new district of Kyankwanzi.

• But even if Dr Mukumbi didn’t have political ambitions, our sources say that some politicians feared that Dr Mukumbi was in a position to unsettle their own political prospects using the ISO network that has tentacles reaching as far as the parish level.

• The President was faced with a country increasingly distraught about the authorities’ inability to come to grips with the horrifying crime. It was not good for his politics. ISO took the flack for the spate of human sacrifice crimes. Questions were asked as to why ISO, despite its wide network, appeared operationally impotent. Comparisons were drawn between ISO

Sacked ISO chief: Dr Mukumbi Minister of Security Mbabazi

(The Monitor)

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and the more settled state of affairs at the sister External Security Organisation despite being run on a meaner budget.

• The fact that ESO was able to build its own three-storeyed office block in Nakasero, Kampala without asking for additional funds while ISO operatives perpetually cried of miserable facilitation may have been used as the other nail to seal Dr Mukumbi’s fate.

Intelligence community in-fighting The Observer reports on 15 August 2010 that the Police boss, Maj Gen Kale Kayihura called a press conference on 12 August 2010 at Uganda Media Centre. As if to prove some validation of his speech, the General summoned some of his trusted lieutenants and the investigators who have been picking up the clues on the July 11 bombers at the media centre.

The purpose of this high powered press briefing was to update the country on the status of their investigations. The bespectacled General told the press that the investigations were complete but not closed. Therefore, he appealed to the press’ sense of responsibility not to publish the photographs of these captured suspects. In his view, publishing the suspects’ pictures would jeopardize the investigations and probably endanger the informers. In fact the press and the General left with a tacit pact that neither party would violate it.

But the General did not know that his colleague, the head of the Chieftaincy of Military Intelligence (CMI) Brigadier James Mugira had totally different ideas up his sleeve. As the General was

wheedling the media, the Brigadier was parading the suspects in the full glare of TV cameras!

The suspects made full public confessions, some rolled tears down their cheeks. They apologised and blamed their acts on religious extremism. Not many people are convinced by these confessions. So, the public is still seesawing between the information given by the General and the one by the Brigadier. Mugira sounded like he had an inkling that Ugandans were in no mood to give him a benefit of the doubt. So, he needed to redeem his image. And he had to do it with a bang.

He said that he had told Ugandans after the 7/11 bombing that they would hunt down the culprits and since he had them in his custody, he felt

Ugandans had a right to know, the restraint and responsibility requested by the Police boss not withstanding. Since 1986, the Police have always complained that the military are either pampered or are preferred by the President to do their (Police) work. Their fears are even compounded by the fact that the President has twice appointed military men to lead them.

It was also thought that putting a military man at the helm of a Police force, would neutralize these latent rivalries between the two security agencies. This doesn’t seem to have worked either.

Burundi, Uganda Top Region's Most Corrupt List Dennis Kawuma All Africa.com 24 July 2010 (Ed: excerpted)

Burundi has been named the most corrupt country in the region, according to the 2010 East African Bribery Index which was launched by Transparency International in Nairobi on Thursday. The index, which was previously confined to Kenya, Uganda and Tanzania, has expanded to include Rwanda and Burundi this year.

CMI Head Brig Mugira (New Vision)

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Burundi takes the top position with a corruption prevalence of 36.7 per cent. Uganda comes second with a corruption prevalence of 33 per cent, while Kenya takes the third position after registering an improvement, by moving from a prevalence rate of 45 per cent in 2009 to 31.9 per cent this year. Tanzania is fourth with a prevalence of 28.6 per cent while Rwanda is the least corrupt country in the region with a corruption prevalence of 6.6 per cent.

The East African Bribery Index is a governance tool developed to measure bribery levels in the private and public sectors in the region. The survey was conducted among 10,505 respondents selected through random household sampling across all the administrative provinces in the five countries between January and March 2010.

VOA reports that Rwanda can be an example for the rest because when cases of bribery are reported, swift action is taken against the perpetrators. There are issues

where even the big people – senior agriculture ministers, senior civil servants – have been prosecuted for involving themselves in corruption. That doesn’t come out very clearly in these other countries. So what they [Rwanda’s officials] are doing is taking the fight against corruption more seriously than the other countries in the region.

Sudan: Agents of fear: the National Security Service Sudanese National Intelligence and Security Service (NISS) is carrying out "a brutal campaign of arbitrary detentions, torture and mental and physical intimidation against opponents and critics of the government", Amnesty International said in a report released in July 2010.

The 2010 National Security Act was passed by the National Assembly in December 2009 and came into force in February 2010. However, the new Act does nothing to ensure that detainees held by the NISS are not deprived of judicial review and other human rights guarantees. It maintains the extensive powers of arrest and detention that were given to the NISS under the 1999 National Security Forces Act. It also maintains the immunity from prosecution and disciplinary action that was granted to NISS members under the earlier law.

The 2010 National Security Act fails to introduce the necessary guarantees to prevent arbitrary detentions, torture and other ill-treatment, and maintains the culture of impunity for these violations. It remains faithful to the government’s vision of the national security force as a body whose function is to maintain it in power, including by repressing the legitimate exercise of freedom of expression.

This report illustrates the serious human rights violations that continue to be committed by the NISS in Sudan, and the extensive powers as well as immunities NISS agents enjoy. It calls on the government of Sudan to amend its laws to guarantee the human rights of detainees and to repeal the 2010 National Security Act. This report calls on the government to reduce the powers of the

Top 10 most corrupt institutions in East Africa:

1. Burundi Revenue Authority/Customs

2. Burundi Police Force 3. Kenyan Police 4. Uganda Revenue

Authority 5. Tanzania Police 6. Uganda Police 7. Kenyan Ministry of State

for Defence 8. Nairobi City Council 9. Judiciary in Kenya 10. Judiciary in Tanzania

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NISS to information gathering, analysis and advice, to put an end to the continuing practice of human rights violations, to make sure that perpetrators are brought to justice, and to provide redress and reparations to victims and their families.

CIA training Sudan's spies as Obama officials fight over policy Washington Post/ Jeff Stein/ August 30, 2010 (Ed: Excerpted)

American officials may be at odds over U.S. policy toward Sudan, but the CIA is soldiering on there.

The East African regime is not just an international pariah for its genocidal track record in the western region of Darfur, it’s officially been branded by Washington as a terrorist state, in part for its past harboring of Islamist radicals, including Osama bin Laden in the 1990s. Despite that, the CIA is continuing to train and equip Sudan’s intelligence service in the name of fighting terrorism.

“The U.S. government is training the Sudanese intelligence services and conducting bilateral operations with them -- all in the name of the long war,” said a former intelligence officer who served in Sudan. “We also refer to the Sudanese as a state sponsor of terror, have called their activities in Darfur genocide, and supported the issuance of arrest warrants for the Sudanese president for genocide, war crimes and crimes against humanity, as defined by the International Criminal Court.” “Certainly," the former intelligence officer added, "the CIA is providing training to the National Intelligence and Security Service,” known as the NISS. “I suspect it was begun … in the very early days after September 11.”

Others say it began in the 1990s. In the beginning, the CIA-NISS relationship was very close-hold, he said, even shielded from other CIA personnel in the embassy because of concerns over Sudan’s grievous human rights record. Training sessions were probably done outside the country, he guessed. “There has also been transfers of equipment” to the NISS, he said, “computers, etcetera.”

Another knowledgeable former U.S. intelligence official said the CIA-NISS partnership began even earlier, in the Clinton administration, and called it "incredibly valuable." "We have had a long term relationship with the Sudanese, even when they closed the embassy for a short period in the late 90s," the official said on condition of anonymity because the topic is so sensitive. "We do not do much training with the Sudanese, except in the field of counterterrorism, and they have been an exceptional partner in helping us against the terrorist target."

The CIA's curriculum with the NISS "is pretty much the same as regular humint/CO [human intelligence/case officer] training, with a focus on targeting the terrorist, i.e., setting up meetings in secure places with surveillance and countersurveillance, knowing what info to look for, keeping all pocket litter, not allowing them to erase cell phones or computers," the former official said. "It also involves 'take downs' of

terrorists or their organizations ..."

In 2005, Bush administration CIA director Porter Goss nurtured the connection. “The CIA flew Salah Gosh, head of the NISS, here to the U.S. in one of their jets during 2005,” the former intelligence officer who served in Sudan said. "He is up to his butt in the genocide in Darfur."

CIA spokesman George Little declined to comment on the agency's relationship with the NISS, saying, “This agency does not, as a rule, comment on reports of relationships with foreign intelligence services.”

NISS Head Salah Gosh

(Abbey Media)

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Likewise at the White House, National Security Council spokesman Mike Hammer said, "We are not going to speak about our ongoing counter-terrorism and intelligence programs with any specific country other than to say that we face significant terrorism related challenges in East Africa, and it is essential that we be able to work in partnership with the countries of the region to identify and disrupt potential terrorist networks."

Some U.S. officials with intimate knowledge of the CIA's program contend that the spy agency's relationship with the NISS actually fosters human rights.

"The intelligence channel has been one tool our government has used to try to influence the Sudanese in terms of human rights and the rule of law,” said one such official. “That was a deliberate policy decision, made with inter-agency support, and—while everyone has their eyes wide open to everything that still needs to happen—the dialogue has had its benefits."

Another, a senior administration official, said, "We're not blind" to the reality of Sudan. "Everybody understands what's going on there." "If the Sudanese go outside the box," he maintained, "we can pull the plug."

Such explanations evoke the darkest days of the Cold War, when successive U.S. administrations used the same rationales for allowing the CIA to have close relations with the security services of some of the world’s worst human rights violators, from South Africa to Argentina, Guatemala and Chile, saying they were necessary for the shadowy fight against Soviet-backed communism.

And as during that time, Obama administration officials have barely concealed their sharp differences over what to do about Sudan.

http://blog.washingtonpost.com/spy-talk/2010/08/cia_training_sudans_spies_as_o.html?wprss=spy-talk

Botswana Security Ministry under fire Ed: Transparency International regard Botswana as the least corrupt country in Africa, but it is facing uncertain times as dissatisfaction with Pres Ian Khama increases ahead of elections in 2014. The latest developments also put the intelligence community under strain. Former Botswana Security Minister in court over corruption By Southern Times Writer 03-09-2010

Botswana's former Minister of Defence, Security and Justice, Ramadeluka (Dikgakgamatso) Seretse, has been charged with corruption by the Directorate of Public Prosecutions on 1 September 2010 after he tendered his resignation from cabinet on 30 August 2010. (Ed: Seretse is also the cousin of Pres Khama)

According to the charge sheet, Seretse is said to have acted in contravention of Section 31 (1) as read with Section 36 of the Corruption and Economic Crime Act. The particulars of the offence are that 'between June 17 and 18, 2008 in Gaborone, whilst he was a member of the cabinet

of the Republic of Botswana, wherein he served as the Minister of Defence, Justice and Security, and as such responsible for the Botswana Police Service, Minister Seretse is alleged to have entered into a contract with the Botswana Police.'

The charge sheet also states that Seretse had a direct interest as shareholder and director in a company called RFT Botswana (PTY) Ltd, a company with which the Botswana Police Service, a department under his ministry, proposed to enter into a contract for the supply, delivery and

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commissioning of Aviation Ground Support Equipment per tender No. PR 2/4/2/08 (XLII), and knowingly failed to disclose, at the material time, to the President of the Republic of Botswana, Ian Khama, as the head of the said public body, that the said company in which he had direct interest as shareholder and director, was involved in the tendering as aforesaid'.

Court date has been set for 6 October 2010.

Botswana Spy agency boss denies snooping Gale Ngakane Correspondent Thursday, 26 August 2010

FRANCISTOWN: The Director General of the Directorate of Intelligence Services (DIS), Isaac Kgosi, allayed fears of Francistown councillors that "no one is spying on them, as the DIS has no capacity

to do so".

On allegations that the agency was implicated in a number of extra-judicial killings, including the shooting of John Kalafatis, Kgosi dared anyone with concrete evidence to come forward and show him the evidence.

"I will duly resign my post and hand myself to the police for justice to take its course. The DIS has never been involved in the killing of anyone. Instead, we have been adhering to our mandate of making sure citizens of this country are safe and secure in their homes," he said.

Kgosi also said it was not true that the High Court is inundated with citizen complaints of the DIS listening into

their cellphones. Kgosi said the work of the DIS is to safeguard the security of the country. Kgosi said the DIS collects and analyses information and then advises the government on what to do. He said the agency wants to keep the country in a state of preparedness against any element of surprise, which he added, was any country's worst enemy.

Zeroing on Francistown, Kgosi said the city was the epicentre of unscrupulous business dealings so the city is within the radar of DIS. He said they have been able to flush out elements that were using the city to try and destabilise the governments of their countries of origin.

"Francistown is in a precarious location which is vulnerable to such incidences. You would have realised that we have borders with Zimbabwe and also we have a refugee camp not far from here," he said without elaborating. In response to a question on human trafficking, which is said to be prevalent in Botswana, Kgosi appealed to the councillors to try and come up with laws against such acts because presently there are none.

http://www.mmegi.bw/index.php?sid=1&aid=4386&dir=2010/August/Thursday26

Botswana: DIS slush funds claims rock BDP OLIVER MODISE/Sunday Standard/8 August 2010 (Ed: excerpted)

The ruling Botswana Democratic Party is being suspected of building a slush fund from the Directorate of Intelligence and Security Services unaccounted money to buy opposition politicians as part of its strategy to stem the tide of resignations. This comes in the wake of complaints by the Botswana Movement for Democracy (BMD), Botswana Congress Party (BCP) and Botswana National Front (BNF) leaders that the BDP has been trying to lure its MPs with promises of money and cabinet positions.

DIS DG Isaac Kgosi

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Opposition leaders suspect that the BDP is using unaccounted Directorate of Intelligence Services (DIS) money as a slush fund to buy opponents. BDP parliamentarians last week stopped investigations into possible abuse of public funds by the Office of the President and the Directorate of Intelligence and Security Services (DIS). The Majority BDP MPs forced parliament to suspend debate on the adoption of the Public Accounts Committee report which recommended an investigation into how P26 million, which was siphoned off the National Disaster Relief Fund to the Directorate of Intelligence Service, was used saying it has come to the conclusion that, “there must have been some element of abuse of funds”.

The speculations are not helped by suspicions that in the past, Khama has used the DIS to investigate cases of BDP internal dissent. The line minister in charge of the DIS, Dikgakgamatso Seretse, dismissed the whole claim as false.

http://www.sundaystandard.info/article.php?NewsID=8492&GroupID=1

Botswana: DIS a smelling rat Sunday Standard /26 July 2010 (Ed: excerpted)

At the top floor of the imposing Office of the President office block, Isaac Kgosi joined the Minister of Defence, Justice and Security Phandu Skelemani for a brief meeting. Vice President Ian Khama’s Senior Private Secretary brought with him a one page-text, allegedly written on the advice of the Director in the Ministry of Finance.

Kgosi was pressed for time. He had to have the Directorate of Intelligence and Security Services (DIS) up and running in five months, in time for when Khama seized the helm. While most Cabinet Ministers were still weighing their chances, he was already populating a prospective Khama administration. Minister Skelemani pulled his pen, scrawled a few comments and signed off the document giving it the power of command. In a few minutes Kgosi’s request had become an order. P13 million was to be siphoned off from the Disaster Relief Fund to help set up DIS.

There was, however, one small problem: Both the Minister of Defence, Justice and Security and the Director in the Ministry of Finance had no authority to approve the expenditure. The episode provides a peep show into how millions of pula were “diverted from the Disaster Relief Fund without authority of the Accounting Officer of the Fund or that of the Minister of Finance and Development Planning”.

In the course of the financial year 2007/08 the Ministry of State President established DIS. There, however was no budgetary provision for the spy outfit, so Kgosi, who was tasked with setting it up, had to scout for funds elsewhere. He wrote to Skelemani asking for money. In his request he indicated that the Director, Ministry of Finance, had advised that P13 million could be drawn from the National Disaster Relief Fund. On the strength of the recommendation, Skelemani authorized the diversion of P13 million from the Disaster Relief Fund to DIS. The newly established DIS used up the money in three months.

Kgosi wrote to Skelemani again in February 2008 asking for an additional P 3 million from the National Disaster Relief Fund, and authority was granted. Indications are that Kgosi, who would later be appointed director of DIS, apparently approached the levers of power obliquely, skirting

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orderly lines of authority and finding ready patrons in the Office of the President. Over the next few months, Kgosi would divert more than P 26 million from the Disaster Relief Fund to the DIS. The money would be spent without leaving a paper trail for the parliament watch-dog committee to follow.

Across the board, Kgosi’s office goes to unusual lengths to avoid transparency. He declines to disclose how he spends the millions of pula appropriated to the DIS. His general counsel has asserted that the DIS is a unique office that is exempt from rules governing tendering and disclosure. According to the PAC report, the Accounting Officer from the Office of the President indicated that the National Disaster Relief Fund money which was diverted to DISS was used on housing, offices, transport, equipment and training. “In order to satisfy itself that the funds had been used as alleged, the PAC requested the Accounting Officer to provide documentary evidence in the form of Public Procurement and Asset Disposal Authority, payment vouchers, suppliers’ invoices etc.

It was somewhat of a disappointment that the accounting Officer responded to the Committee’s request by stating that she could not provide the Committee with such details due to the sensitivity of matters handled by DIS. The Committee found this explanation unacceptable because they did not see anything sensitive about renting or buying houses and/or offices, purchasing vehicles, and training personnel.” Under cross examination by the Public Accounts Committee, the Director, Ministry of Finance, denied ever advising Kgosi that funds as requested for DIS could be availed from the National Disaster Relief Fund.

In 2008/09, even though the DIS had a full budget (both recurrent and development), it went on to draw P10 967 531 from the National Disaster Relief Fund to which the Auditor General expressed his concerns as follows: “I have not been able to appreciate why those expenditures, involving substantial amounts of money as they did, were met from the Fund under which no funds had been provided, instead of from the appropriate expenditure vote for the year 2008/2009. The PAC, on the other hand, states: “While wrong authority was used to spend the funds from the National Disaster Relief Fund for unauthorized purposes in 2007/2008, the committee is at a loss to understand how the Department continued to use the funds in 2008/09. It is not at all clear what circumstances led to the use of the funds, under what authority and for what purpose. The situation is exacerbated by the failure of the Accounting Officer to account for these funds and this leaves the committee with no option but to conclude that there must have been some element of abuse of funds.” The committee has recommended that “law enforcement agents should conduct further investigations into the usage of the funds from the National Disaster Relief Fund.” http://www.sundaystandard.info/article.php?NewsID=8354&GroupID=4

South Africa: Intelligence Link in Row on Lonmin Mine Rights Allan Seccombe/All Africa.com/10 August 2010 (Ed: excerpted)

Johannesburg — TWO women with strong links to national intelligence have emerged as directors of the company that has shocked SA's mining sector and set off alarm bells in the international community that finances its mining operations.

The company set to benefit from Lonmin having been ordered to stop selling associated metals from its operations is Keysha Investments 220, a group that counts the chairwoman of the Department of State Security's Intelligence Services Council as one of its two directors.

The development has again raised disquiet about the possible role of political connections in the award of mining rights in SA. The move also threatens to undermine investor confidence in the

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sector at a time when mineral prices are showing a strong recovery, and raises fears SA will again miss out on booming commodity prices.

Imara SP Reid told clients on Friday: "Unless the situation is corrected soon, foreign investors will be forgiven for assuming not only that acquiring South African mineral rights is a fraught process, but in any event not worth the trouble if they can be rescinded arbitrarily and awarded to politically connected entities."

The controversy follows Kumba Iron Ore's appeal against the grant of a prospecting right over part of its Sishen iron-ore mine to Imperial Crown Trading 289. Imperial applied for a prospecting right over a 21,4% stake in Sishen after it reverted to the state when steel maker ArcelorMittal SA did not convert that stake to a new-order mining right within the prescribed time.

Lonmin stock fell the most of companies listed on the FTSE 100 on Friday after the group said it had received a letter demanding it stop sales of metals other than platinum group metals.

Old mining laws gave mining groups the right to sell associated minerals for their own benefit. The 2002 Mineral Resources and Petroleum Development Act "is silent" on this, Lonmin said.

The group is taking urgent legal steps against the department. Lonmin filed an application last year to the department to explicitly give it the right to sell these minerals, but the application did not cover all associated minerals as a prospecting right had been granted over a "small portion" of Lonmin's property.

Keysha Investments 220 applied for the prospecting rights for associated minerals in March last year. The rights were granted on May 12 this year. Keysha Investments 220 is a member of the HolGoun Group - a family-owned investment holding company set up by Sivi Gounden and his wife Vanessa, who are chairman and CEO of HolGoun respectively.

Mr Gounden served on the Lonmin board until October. He was director-general of the Department of Public Enterprises for five years until 2004. A company search shows that Keysha's directors are Ms Gounden and Miriam Sekati. Ms Sekati chairs the Intelligence Services Council, the human resources arm of SA's Department of State Security. Ms Gounden, at one point, was head of human resources for the National Intelligence Agency before leaving in 2002 - details confirmed by HolGoun.

Lonmin says the associated minerals occur in the platinum reefs and cannot economically be mined in isolation. It intends selling 700 000oz of platinum this year and has said that associated minerals contributed about 80m to its revenue last year. However, HalGoun is determined to press its rights. "HolGoun will prospect in order to determine viability of the project. If viable, HolGoun will apply for conversion of its prospecting right into a mining right. It will then proceed to beneficiation of the minerals," HolGoun said.

http://allafrica.com/stories/201008100598.html

South Africa: Laws to Give Financial Regulator More Power Sanchia Temkin/20 August 2010 (Ed: excerpted)

Vanessa Gounden

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Johannesburg — NEW financial laws will give more teeth to the Financial Intelligence Centre by widening and strengthening its enforcement and regulatory powers. Under these laws the centre will be given far-reaching powers to carry out inspections at businesses , to request firms to produce documentation, and to interview directors and other employees to ensure compliance with the new law.

"It is a new way of doing business," Christopher Malan, head of compliance and prevention at the Financial Intelligence Centre, said yesterday. "It is more of an invasion to a business if it should fall foul of the provisions (of the Financial Intelligence Centre Act 2008)."

Financial services institutions, including banks and insurance firms, will from December 1 face hefty fines for failure to comply with the act, which is largely aimed at curbing money laundering. The amendments to the Financial Intelligence Act are intended to increase the penalties under the legislation, said Mr Malan. There was no enforcement under the current legislation other than by way of criminal sanctions, he said.

Under the amendments, administrative sanctions would be imposed on an accountable institution such as a bank or other financial institution, reporting institution or person responsible for noncompliance. Penalties for noncompliance were a maximum of R10m in respect of individuals and R50m for businesses.

The amendment act is expected to come into effect on December 1.

http://allafrica.com/stories/201008200612.html

Nigeria Terrorism-Money Laundering Bill - Jonathan Expresses Concern Over Delay Uchenna Awom/ 10 August 2010

Abuja — President Goodluck Jonathan yesterday expressed anger and concern over the failure of the National Assembly to pass the Anti-Terrorism and Anti-Money Laundering (Amendment) bills despite his appeals both in writing and physical contact with the Leadership of the upper chamber.

In the president's letter of August 6, which was read on the floor by the Senate President, Senator David Mark, he drew the attention of the Senators to the fact that the commitment to the Financial Action Task Force (FATF) that the two bills would be passed into law on or before June

30, 2010 was not met.

The letter titled "Re: Urgent passage of Anti-Terrorism bill and the Anti-Money laundering (Amendment) bill" read in part; "Please recall my letter to you on the above subject wherein I requested the Senate to kindly consider the quick passage of the Anti-Terrorism and the Anti-Money Laundering (Prohibition) Amendment Bills, which were presented to the Senate of the Federal Republic in 2009, to enable Nigeria fulfill its commitment to the FATF and the International community.

"Mr. Senate President will also recall my meeting with the leadership of the National Assembly, during which I stressed the importance of the letter and urgency to pass the bills.

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"I understand the two bills are still being worked on by relevant Committees in both Houses, which have raised certain concerns on some provisions of the bills, these, perhaps, may have been responsible for reduced momentum in the process.

"Mr. Senate president may wish to note that every provision in the draft bills presented to the National Assembly is consistent and in compliance with global instruments, which Nigeria has signed and ratified. International standards require all member-states to model their domestic legislation in consonance with global best practices. It is therefore important that the two bills, when passed into law, should meet basic global standards, failing which Nigeria will continue to be adjudged as a non-cooperating jurisdiction.

"You may also wish to be informed that the global financial watchdog is scheduled to meet again with the Presidential inter Ministerial/Agency Committee in September 2010 to review the progress made by Nigeria. It would be a huge plus for the country if the country has a positive report regarding the two pending bills.

Jonathan in the letter noted that the delay in passage of the bills "will frustrate and hamper legitimate international transactions flowing from Nigeria, some countries will not honour international financial instruments emanating from Nigeria; including letter of credit," the President said while listing some of the sanction hanging on the country.

"International investors will be scared to invest in Nigeria and those willing to do so will request for the most stringent conditions, and Nigeria's international image will be highly dented as a country without the political will to cooperate in the global war on terror." http://allafrica.com/stories/201008110099.html

Libya and South Korea in conflict over rare espionage case: source By Yoo Jee-ho/ Seoul/July 27 (Yonhap)

A South Korean intelligence official was recently deported from Libya on charges of illicit espionage, leading to the arrests of other South Korean residents there and further deteriorating the countries' bilateral ties, a diplomatic source here said Tuesday. According to the source, an official of the Seoul-based National Intelligence Service (NIS) was expelled from Libya on June 18 for allegedly trying to collect information on the country's leader, Muammar al-Qaddafi, his family and key Libyan bureaucrats.

The official, whose identity was withheld, was working out of the South Korean Embassy in Libya. "Libyan authorities shadowed him for three

months before arresting him last month," the source said. "He was interrogated for six days before getting deported as a persona non grata." The source explained the expelled official had never before been posted overseas and that he might have been too eager to please. "In Libya, any information related to al-Qaddafi and his family is sensitive, and going after it is quite dangerous," the source said.

A Libyan official told the London-based Arabic newspaper Asharq Al- Awsat that the authorities were trying to establish whether the South Korean was working for the South's intelligence agency or for a multinational one. The paper also reported that a Libyan employee at the South Korean Embassy had been arrested under suspicions of illegal spying but provided no further details. When Seoul raised issue with the deportation, the source said Libya grew equally upset and on June 23 decided to close its economic cooperation bureau in Seoul, which had served as a de facto

Seal of South Korea’s NIS

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Editor: Dalene Duvenage Click on hyperlinks to open documents dalene@4knowledge.co.za

embassy. Consular operations, including visa issuance, remain suspended. The diplomatic source said the Libyan authorities "went on a sort of a witch hunt" targeting suspicious South Koreans, and nabbed a missionary named Koo on June 15 and then a farmer named Jeon on July 17, on charges of violating the Muslim nation's religious law. The foreign ministry here said Libya has denied South Korea consular access to the detainees. Another diplomatic source said Lee Sang-deuk, a ruling party lawmaker and brother of President Lee Myung-bak, traveled to Libya earlier this month as a special envoy. His assignment, the official said, was "to try to clear any misunderstanding" stemming from the deportation and "to clarify the situation" to the Libyan government. When Lee's visit failed to produce any breakthrough, NIS representatives went to Libya last Tuesday for discussions with their Libyan counterparts, the source added. According to a senior ministry official, the first round of meetings ended last week and Seoul was still awaiting Libya's response. "The government is trying to ensure that this incident doesn't have any adverse effect on our bilateral relations and that it's resolved as quickly and smoothly as possible," he said. This year marks the 30th anniversary of the two countries' diplomatic ties. Libya is one of South Korea's largest construction markets, with more than US$3 billion in construction contracts last year.

http://english.yonhapnews.co.kr/national/2010/07/27/36/0301000000AEN20100727007200315F.HTML

Group promotes Egypt's spy chief for president AP 2 September 2010

CAIRO — A group of activists have hung up posters around Egypt's capital supporting the country's intelligence chief as a possible candidate in next year's presidential elections.

Launched Thursday, the campaign for Omar Suleiman is the latest stab against a possible father-son succession in which President Hosni Mubarak, Egypt's leader of nearly 30 years, passes power to his son, banker-turned-politician Gamal. Mubarak, 82, and his son deny such a plan exists, but Gamal Mubarak's political influence has been growing since 2000.

Opposition has been vocal against such a succession, floating names of alternative candidates like Suleiman and former U.N.

nuclear agency chief Mohammed ElBaradei. The posters call Suleiman a "real alternative.

Go to http://4knowledge-za.blogspot.com/ for Intelligence related events around the world and copies of previous SA Intelligencers.

• September 10: Netherlands Intelligence Studies Association: Ethics & Effectivity of Intelligence in the times of Counter terrorism

• September 28-30: Geospatial Defence and Intelligence Asia, Kuala Lumpur, Malaysia • September 28-30: Geospatial Intelligence Summit, Vienna Austria • October 14-15: CASIS International conference, Ottawa, Canada • May 2011: Future of Intelligence and Counter Intelligence: Threats, Challenges,

Opportunities, Amsterdam, Netherlands

Egyptian intelligence chief Omar Suleiman

3 September 2010 SA Intelligencer Number 82

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Editor: Dalene Duvenage Click on hyperlinks to open documents dalene@4knowledge.co.za

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