Saturday, May 18, 2013

Syria and the empowering of the Islamists. Obama has unleashed them


Al-Qaeda's Syrian wing takes over the oilfields once belonging to Assad

Al-Qaeda's Syrian wing is helping to finance its activities by selling the product of oilfields that once helped to prop up the regime of Bashar al-Assad.


Up to 380,000 barrels of crude oil were previously produced by wells around the city of Raqqa and in the desert region to its east that are now in rebel hands - in particular Jabhat al-Nusra, the al-Qaeda off-shoot which is the strongest faction in this part of the country.
Now the violently anti-Western jihadist group, which has been steadily extending its control in the region, is selling the crude oil to local entrepreneurs, who use home-made refineries to produce low-grade petrol and other fuels for Syrians facing acute shortages.
The ability of Jabhat al-Nusra to profit from the oil locally, despite international sanctions which have hindered its sale abroad, will be particularly worrying to the European Union, which has voted to ease the embargo but at the same time wants to marginalise the extremist group within the opposition.
In the battle for the future of the rebel cause, the oil-fields may begin to play an increasingly strategic role. All are in the three provinces closest to Iraq - Hasakeh, Deir al-Zour, and Raqqa, while the Iraqi border regions are the homeland of the Islamic State of Iraq, as al-Qaeda's branch in the country calls itself.
It was fighters from Islamic State of Iraq, both Iraqi and Syrian, who are thought to have founded Jabhat al-Nusra as the protests against the rule of President Assad turned into civil war.
Because of sanctions, Jabhat's oil is largely shipped to thousands of home-built mini-refineries that have sprung up across the north of the country. The crude is distilled in hand-welded vats dug into the ground and heated with burning oil residue.
The Jabhat Al Nusra, a proscribed islamic militant group control the oil fields and cannot export due to sanctions, so this provides some cash flow to the rebel cause as well as much needed fuel for Northern Syria
It is not clear how much money is being channelled back to the group. But all those buying the raw product were aware that Jabhat was profiting.
"Jabhat do not ask for taxes or charges for this trade," said one of them, Omar Mahmoud, from Raqqa province. "But we are buying the oil from them so they do not need to."
Syria's oil output, never as great as that of some of Syria's Arab neighbours, fell to about 130,000 barrels a day after the outbreak of the revolution against the Assad regime.
However, Jabhat al-Nusra are now putting that to good use. The homes refineries are turning out poor quality but usable – and much-needed - petrol and kerosene for cooking and home stoves.
Their product might not meet the quality, and certainly the health and safety standards, demanded by Shell or ExxonMobil, but it provides a living to thousands of blackened figures willing to risk the business's inherent dangers.
In parts of north-east Syria, the stills are set up by every road-side, the produce sold like fruit from lay-bys to drivers as they pass. But the unquestioned centre of the industry is the desert outside the small town of Mansoura, a few miles west of Raqqa city and on the other side of the Euphrates River.
Here, the entire horizon is a blighted scene of billowing clouds out of which dark figures occasionally emerge on foot or roaring motor-bikes. Near the road sit oil tankers carrying the raw product.
"I make 3000 Syrian pounds (about £15) a day," said Adel Hantoush, 19, his legs dripping with crude, a filthy headscarf wrapped around his face. A building site casual labourer in better times, he helps support his father, mother and nine brothers and sisters.
Black smoke blew past his head as colleagues poured fuel into the burning pit under their tank. "The last thing I think about is my health," he said. "If I don't do this, my family will die."
The amateur production process is quite simple, and easily explained in school text books.
The oil is heated slowly, with the different grades of product evaporating at different temperatures. The vapour is fed through pipes channelled through pits filled with water to recondense it as a liquid, which runs out into containers at the other end.
Near Raqqa, they pay 4000 Syrian pounds (£20) a barrel, with the price rising for smaller quantities and as the distance increases. A single refining vat can take six barrels at a time, producing maybe 30 litres of petrol, similar quantities of cooking fuel and higher amounts of diesel.
Abdulwahad Abdullah, a wheat farmer from north of Raqqa who runs a single still through two five-hour cycles a day, says he can make 20,000 pound profit (£100) on a good day.
It is a Mad Max scene, indicative of the chaos the war has unleashed in Syria, creating a landscape ideal for the methods of dominance al-Qaeda learned in post-war Iraq.
General Selim Idriss, the head of the western-backed opposition Military Council, has appealed for Western help specifically to seize the fields from Jabhat, but the forces required - he put it at 30,000 men - make that a pipe dream. Even pro-Western rebel militias in the area admit that the level of support received from the council is at present minimal.
They have promised to take on Jabhat al-Nusra once the fighting is over, but they are split and fighting among themselves, with their lack of money forcing some to turn to looting and extortion to fund themselves, further alienating the local population.
Jabhat have used their greater proficiency at fighting, honed by jihad in Iraq and elsewhere, to take a leading role at the battlefront. "They are more disciplined," Abu Hamza, a fighter with a rival Islamist rebel brigade in Aleppo admitted. "When they attack, they make a plan first, and then stick to it."
Their battlefield supremacy has enabled them to seize the economic as well as the military high-ground.
In Raqqa, they also control flour production, earning money from selling to bakeries, some of which they own as well. "Jabhat now own everything here," one disillusioned secular activist said.
In other places they sell the flour at a loss, further endearing them to the local population.
Until now it has been a virtuous circle. Well-funded anyway from foreign contributions, they are able to avoid levying the fees – some say bribes – to pay their men and for supplies that have made other brigades increasingly unpopular. That in turn has been a major boon to recruitment, with thousands defecting to them.
Jabhat al-Nusra's rule has not been easy. It has had to fight opposed local brigades, and has begun to face protests over its hardline policies – most recently last week after their public execution of three captured soldiers in Raqqa's town square. The group said this was revenge for a massacre of civilians by pro-Assad forces in the coastal town of Baniyas.
Ominously, this was done in the name of "Islamic State of Iraq and Syria", suggesting that Jabhat al-Nusra at least in the east is now fully under the control of the murderous Iraqi mother group.
Few are concerned about the downsides, though one man showed huge weals that had grown under his arm which he blamed on his days inhaling the dense black smoke.
One Mansoura man, Mahmoud Ismail, a computer technician who had come to the desert site to visit friends and was watching them pour petrol into barrels to take away, said he had tried the work for a single day. But he then gave it up when he thought about what he was inhaling.
"I came, did it, and then packed up and stopped," he said. "It just wasn't worth it."
With that, he flicked his cigarette on to the ground, and stamped it out.

More tax cheat friends of Obama


Google insider exposes ‘immoral’ tax scam

A FORMER Google executive has blown the whistle on a massive and “immoral” tax avoidance scheme that has “cheated” British taxpayers out of hundreds of millions of pounds over the past decade.
Barney Jones, 34, who worked for the internet search giant between 2002 and 2006, has lifted the lid on an elaborate structure which diverts British profits through Ireland to the Bermuda tax haven.
Although Google’s London sales staff would negotiate and sign contracts with British customers, and cash was paid into a UK bank account, deals were technically booked through its Dublin office to minimise its liabilities here. Jones, a devout Christian and father of four, is ready to hand over a cache of more than 100,000 emails and documents to HM Revenue & Customs (HMRC), detailing the “concocted scheme”.
He has already provided testimony to the Commons public accounts committee (PAC) which led to the combative questioning of Matt Brittin, a Google vice-president, last week.
“The real victims are ordinary taxpayers in Britain who are being cheated by Google,” said Jones. “They don’t have the means to hire accountants to pretend they make their money in Ireland, Bermuda or the British Virgin Islands. What Google is doing is immoral.”
The evidence that Jones has shown to The Sunday Times will add fuel to the political firestorm engulfing Google, and threatens to overshadow a meeting between David Cameron and Google’s executive chairman, Eric Schmidt, on Monday.
Last week the Silicon Valley giant was branded “evil”, “devious” and “unethical” by Margaret Hodge, chairwoman of the PAC, over its aggressive accounting tactics.
The row revolves around Google’s use of its European headquarters in Dublin to all but eliminate its tax bill in Britain. Between 2006 and 2011, Google notched up revenues of $18bn (£11.9bn) in Britain, according to American stock market filings. However, by booking all UK sales through Ireland, it handed HMRC only about £10m in corporation tax over the period. It is able to record the revenues in Ireland because the UK company is deemed to drum up new business, with sales staff in Dublin executing all deals.
Jones, who marketed Google’s services to prospective clients, told The Sunday Times that this was not the case. He has decided to blow the whistle on his former employer after hearing what he views as misleading testimony from Brittin, Google’s northern Europe head, to parliament.
Brittin told the PAC last year that “nobody” in Google’s UK office was selling advertising on its website. When he asked to give further evidence last week, he admitted “a lot of the aspects of selling” did take place in London but the deals were “closed” by staff of Google’s Irish subsidiary.
The distinction is crucial because if deals were finalised by London-based staff, Google could be deemed to have made profits on the contracts which would be taxable in Britain, rather than low-tax Ireland. “It uses a concocted scheme to avoid tax. It’s a smoke-screen to distort where the substance of its economic activity is really taking place,” Jones told The Sunday Times.
He said he attended meetings where Google’s London sales staff closed deals, including winning contracts from eBay, the online auction site, Kelkoo, a price comparison website, and Lloyds TSB. He showed The Sunday Times contracts, invoices and correspondence between Google and its customers in Britain. One 2004 contract had the address of Google’s London headquarters next to the heading. Clients would be sold deals by Google staff in London, who were in charge of sending out contracts and receiving signed documents back from clients. In addition, British clients paid money into British bank accounts for Google services.
According to Google’s US accounts, the firm generated sales in Britain of $400m (now £266m) in 2004 and $878m (£579m) in 2005. Yet, Google UK Ltd reported revenues of just £11.1m and £27.1m. “We were making tons of money,” said Jones, who estimates that many of Google’s London sales staff were paid £100,000 a year, mostly in bonuses for landing new contracts.
In 2011, the internet search provider paid just £6m in corporation tax despite its US accounts revealing that its UK turnover was £2.7bn. That year Google’s profit margin was 26%, which, if applied to its British revenue, would produce profits of £676m and a corporation tax bill of more than £180m. Like Google, Apple and Facebook have also based their European headquarters in Ireland, where the corporation tax rate is 12.5%, significantly lower than the UK, currently 23%. However, Google, whose corporate motto is “Don’t be evil”, pays much less by paying massive royalty fees through its overseas subsidiaries to the Bermuda tax haven.
Cameron has vowed to close loopholes and crack down on tax abuses, but he is under growing pressure to axe Schmidt from his panel of senior business advisers which meets at No 10 tomorrow.
Peter Barron, Google’s director of external relations, said: “As we said in front of the public accounts committee, it is difficult to respond fully to documents we have not seen. These questions relate to Google’s business in the UK going back a decade or more. None of the allegations put to us change the fact that Google pays the corporate tax due on its UK activities and complies fully with UK law.”

Anyone else tired of being lectured to by a woman who lives and eats lavishly at the WH.


First Lady Expands Anti-Obesity Campaign to Museums


Michelle Obama has expanded her anti-obesity campaign to museums, enlisting them to offer “healthy food options,” and change their menus.
Mrs. Obama’s “Let’s Move!” initiativeis now calling for museums, zoos, gardens, science and technology centers to “join the call to action,” to decrease obesity among children.
The first lady is recruiting these institutions to join the “Let’s Move! Museums and Gardens” project because of their power to “influence real and sustained behavior change” on the eating habits of kids.
“With their impressive reach and great potential for impact, museums and gardens can launch community efforts to create a healthier generation using interactive exhibits, outdoor spaces, gardens and programs that encourage families to eat healthy foods and increase physical activity,” the program said.
So far, 624 institutions across the country have signed up.
One of the goals of the program is that 90 percent of the museums and centers that offer food service will “already offer or will change their menu to offer food options that reflect healthy choices.”
Let’s Move! wants the museums to abide by the Center for Disease Control’s (CDC) nutrition standards, which include limiting “deep-fried entrĂ©e options to no more than one choice per day” and offering fruit or a “non-fried” vegetable as side dishes “instead of chips or a cookie.”
Other goals of Mrs. Obama’s initiative include recruiting 2,000 institutions in the first year and securing 200 million visits per year to the participating organizations.
The project also placed an emphasis on physical activity, hoping that the museums and zoos will offer afterschool and summer programs.
“Museums and gardens are core community institutions,” Let’s Move! said. “They are trusted in their communities and have the capacity to influence real and sustained behavior change.”
“This initiative is intended to capture what is happening in museums and gardens and also to encourage new activity,” it says.
When awarding the winners of the 2013 National Medal for Museum and Library Service last month, Mrs. Obama noted that three of the five recipients are enrolled in her museums campaign.
“There are some of you who are even members of our Let's Move Museums and Gardens initiative – yes, indeed,” the first lady said. “And you know that I greatly appreciate that work, everything that you all are doing to make it fun and creative for kids to develop lifelong health habits. Thank you for that work.”
Does she look like someone that takes her own advice?


Tax insanity. Animal Farm come to life


Taxes on some wealthy French top 100 pct of income: paper

Related Topics

PARIS | Sat May 18, 2013 1:16pm EDT
(Reuters) - More than 8,000 French households' tax bills topped 100 percent of their income last year, the business newspaper Les Echos reported on Saturday, citing Finance Ministry data.
The newspaper said that the exceptionally high level of taxation was due to a one-off levy last year on 2011 incomes for households with assets of more than 1.3 million euros ($1.67 million).
President Francois Hollande's Socialist government imposed the tax surcharge last year, shortly after taking office, to offset the impact of a rebate scheme created by its conservative predecessor to cap an individual's overall taxation at 50 percent of income.
The government has been forced to redraft a proposed bill to levy a temporary 75 percent tax on earnings over 1 million euros, which had been one of Hollande's campaign pledges.
The Constitutional Council has judged such a high rate of taxation to be unfair, leaving the government to rehash it to hit companies rather than individuals.
Since then, a top administrative court has determined that a marginal tax rate higher than 66.66 percent on a single household risked being considered as confiscatory by the council.
Les Echos reported that nearly 12,000 households paid taxes last year worth more than 75 percent of their 2011 revenues due to the exceptional levy. ($1 = 0.7798 euros)

Even among liberals lights are turning on


There Was No Surge in IRS Tax-Exempt Applications in 2010

Fewer groups sought recognition as 501(c)(4) social welfare organizations that year than in 2009, according to the Treasury Department.
Screen Shot 2013-05-17 at 12.46.35 PM.png
Treasury Inspector General for Tax Administration
A number of people have sought to explain the IRS targeting of Tea Party, patriot, and 9/12 group applications -- as well as those from other conservative groups -- for "specialist team" treatment (mainly delays and excessive and inappropriate questions) in 2010 by pointing to the Citizens United decision that year allowing for unlimited, undisclosed fundraising by such groups. That's the explanation IRS official Lois Lerner gave a week ago when she first revealed that the agency had improperly handled a slew of applications -- the political shorthand was a mistaken attempt to deal with a surge in applications.

"[W]e saw a big increase in these kind of applications, many of which indicated that they were going to be involved in advocacy work," Lerner said.

But Todd Young, a Republican congressman from Indiana, pointed out atFriday's House Ways and Means Committee hearing with former acting IRS commissioner Steve Miller and Treasury Inspector General J. Russell George that this was not the case, according to the very data the IRS provided to the Treasury IG's office. 

There were, he noted, actually fewer applications for tax-exempt status by groups seeking to be recognized as social-welfare organizations that year than the previous one, according to this IRS data. The real surge in applications did not come until 2012 -- the year the IRS stopped the practice of treating the Tea Party class of groups differently from others.

All of which raises, once again, the question financial journalist David Cay Johnson asked in a column today: "Why is Lois G. Lerner still on the taxpayer's payroll?"

NB: The Chronicle of Philanthropy was on this story two days ago.

More Islamist terror


Credit: Idaho State Police
Fazliddin Kurbanov
KTVB.COM
Posted on May 17, 2013 at 7:49 AM
Updated yesterday at 5:39 PM

Terrorist arrested in Boise
BOISE -- An Uzbekistan national arrested in Boise has pleaded not guilty in federal court to charges he conspired with a terrorist group on a scheme to use a weapon of mass destruction.
Fazliddin Kurbanov, 30, appeared before a federal judge at 8:30 a.m. He used an interpreter over the phone to communicate his not-guilty plea.
Kurbanov's trial is now set for July 2, 2013 at 9:30 a.m.
The 30-year-old Uzbekistani also faces a detention hearing on Tuesday to determine whether he'll stay in custody until his trial.  KTVB has obtained documents that show prosecutors believe Kurbanov is a serious flight risk if he is not in jail.
KTVB's Jamie Grey was in federal court during Friday's proceedings. She said Kurbanov sat quietly and didn't appear to have any family in court.
On Friday, we also learned that Kurbanov is employed locally as some sort of truck driver.
U.S. ATTORNEY SPEAKS 
U.S. Attorney Wendy Olson cautioned the public not to stereotype Boise's Muslim community because of the arrest.
"Some of the online commenting was starting to make critical comments about Islam and Muslims," Olson told KTVB. "I would like to say that the fact that this individual was arrested and the terrorist organization identified reflects not at all on the broader Muslim community here in Idaho."
Olson went on to say her office and the Department of Justice are focused on the conduct of one individual, not an ethnic or religious group.
"We have outstanding partnerships with the Muslim community with them in a number of different areas, and this shouldn't be seen in any way as a reflection on that community," Olson continued. "This is about the specific conduct of an individual."
FBI AGENTS RAID APARTMENT
FBI agents and police raided Kurbanov's apartment on Cassia Street in Boise on Thursday after a grand jury issued a three-count indictment accusing him of federal terrorism charges.
Court documents show those charges are based on evidence Kurbanov conspired with a foreign terrorist organization in Uzbekistan, possessed an unregistered explosive device, made shopping trips for bomb-making materials, conspired with others on how to make bombs, and showed instructional videos on the topic.
Kurbanov's neighbors at the Glenbrook apartment complex told KTVB they noticed about six black SUVs arrive around 10:30 a.m.
Authorities say Kurbanov was arrested in connection with the raid, but have not detailed how he was arrested.
A KTVB photojournalist on scene captured video and images of FBI agents searching his apartment and car. 
FEDERAL CHARGES IN IDAHO
According to U.S. district court documents, Kurbanov both conspired with individual terrorists to carry out illegal activities and conspired with the Islamic Movement of Uzbekistan, a known terrorist organization. The charges state the Kurbanov also provided material support and resources to the organization, including computer software and money.
The indictment out of Idaho also states that Kurbanov possessed a hollow hand grenade stuffed with a hobby fuse, aluminum powder, potassium nitrate and sulfur on or about the time of Nov. 15, 2012.
FEDERAL CHARGES IN UTAH
A separate federal grand jury in Utah also returned an indictment charging Kurbanov with distributing information about explosives, bombs and weapons of mass destruction.
David Barlow, the U.S. attorney in Utah, said the grand jury alleges that Kurbanov provided written recipes for how to make improvised explosive devices and went on instructional shopping trips in Utah showing what items are necessary to buy to make the devices. He said Kurbanov also showed Internet videos on the topic.
The prosecutor declined to say whom Kurbanov took on the shopping trips in Utah but said that information will come out as the case moves through the courts.
Federal authorities tell KTVB Kurbanov will likely face the Idaho charges and any resulting trial period here in Boise before he faces the charges out of Utah.