goldiron

Source: Cryptogon

Blackwater has probably been used for U.S. Government narcotics trafficking operations before, but it looks like that is going to be a major component of their business going forward.

Note the phrase “aviation support” in the story below. Aviation support is synonymous with narcotics trafficking. If you read, Compromised: Clinton, Bush and the CIA, this will all make much more sense.

Also note the mention of West Africa as a venue for increased Blackwater/Xe activity. In this context, see: Global Cocaine Trade Moves to Africa:

West Africa is an unlikely center for the international cocaine trade. It is not a producer of the drug nor is it a consumer, as the vast majority of its people are very poor.

Yet a startling 50 tons of cocaine is transported through West Africa each year, according to the latest United Nations estimates. The value of this illicit trade dwarfs entire economies and has the potential to corrupt the region’s fragile states, which are just pulling out of decades of bitter civil wars.

In the past Africa has been a treasure trove looted by covetous colonialists, voracious rebels and kleptocratic rulers — over the last 300 years think slaves, ivory, gold, diamonds, tin and coltan. Now it is a transit point and storeroom for the cocaine trade.

“Drug money is perverting the weak economies in the region,” says Antonio Maria Costa, executive director of the U.N. Office on Drugs and Crime. The wholesale value in European streets of cocaine passing through West Africa is $2 billion, he says.

South American cartels used to transport cocaine to the big U.S. market via the Caribbean. But dwindling American consumption, stricter control of the West Indies drugs route, growing cocaine use in Europe and weak law enforcement in West Africa have conspired to bring the drug to the region. It is the path of least resistance.

Grown and processed in South America, the refined cocaine is transported by boat or plane across the Atlantic: The shortest line of latitude brings the cargo straight to West Africa. From there the cartels move the drugs onwards to Europe, along the way paying off West African officials in order to be able to operate freely.

So, we have Blackwater/Xe increasing “aviation support” activities in two of the hottest narcotics trafficking hubs in the world. Coincidences.

Blackwater/Xe/ or whatever those crooks are calling themselves this week, are probably going to be performing the same role as Barry and the Boys did at Mena, Arkansas in the 1980s. Running contractors and cutouts, training drug pilots, retrofitting aircraft, and actually carrying out narcotics trafficking operations. Soup to nuts.

In other words, same shit, different decade.

Via: AP:

Blackwater Worldwide is still protecting U.S. diplomats in Iraq, but executives at the beleaguered security firm are taking their biggest step yet to put that work and the ugly reputation it earned the company behind them.

Blackwater said Friday it will no longer operate under the name that came to be known worldwide as a caustic moniker for private security, dropping the tarnished brand for a disarming and simple identity: Xe, which is pronounced like the letter “z.”

It’s a rare surrender for a company that cherished a brand name inspired by the dark-water swamps of northeastern North Carolina, one that survived another rebranding effort about a year ago, following a deadly shooting in Baghdad’s Nisoor Square. The decision to give it up underscores how badly the Moyock-based company’s brand was damaged by that incident and other security work in Iraq.

“They have established themselves as the bad guys,” said Katy Helvenston, who sued the company following her son’s death during a mission in Fallujah while working for Blackwater in 2004. “They’ve established such a horrible reputation. Why else would they change their name?”

Blackwater acknowledged last year in an interview with the The Associated Press the damage to its reputation had persuaded the company to focus on lines of business other than private security contracting.

The issue came to a head last month, when the State Department said it would not rehire Blackwater to protect its diplomats in Iraq after its current contract with the company expires in May. The company has one other major security contract, details of which are classified.

“It’s not a direct result of a loss of (that) contract, but certainly that is an aspect of our work that we feel we were defined by,” said spokeswoman Anne Tyrrell.

The company is also replacing its bear paw logo with a sleeker black-and-white graphic based on letters that make up the company’s new name. In a note to employees, president Gary Jackson said the name change reflects the company’s new focus, and he indicated Xe would not actively pursue new security business.

“This company will continue to provide personnel protective services for high-threat environments when needed by the U.S. government, but its primary mission will be operating our training facilities around the world,” Jackson said.

It has expanded other businesses such as aviation support, recently building a fleet of 76 aircraft that it has deployed to such hotspots as West Africa and Afghanistan. The company got its start in training and continues to build up that business. Last year, some 25,000 civilians, law enforcement and military personnel attended a Blackwater class.

The company’s changes aren’t entirely voluntary. The 2007 shooting in Nisoor Square involving Blackwater guards left at least a dozen Iraqi civilians dead, infuriated politicians in Baghdad and Washington, triggered congressional hearings and increased calls that the company be banned from Iraq.

Late last year, prosecutors charged five of the company’s contractors — but not Blackwater itself — with manslaughter and weapons violations. In January, Iraqi officials said they would not give the company a license to operate. The State Department responded by informing Blackwater it would not renew a contract that comprises a third of the company’s nearly $1 billion in annual revenue.

“It would hurt us,” company CEO Erik Prince said in an interview before losing the State Department deal. “It would not be a mortal blow, but it would hurt us.”

Blackwater has rebranded before, introducing a new name — Blackwater Worldwide — and slight changes to its logo about a year ago. But Friday’s announcement cuts ties entirely with a name created in 1997 when Prince and some of his former Navy SEAL colleagues launched the company.

Xe will cover the parent brand for the two-dozen subsidiaries, and none of those subsidiaries will retain the word “Blackwater” in their names.

Illinois Rep. Jan Schakowsky, chair of the Intelligence Subcommittee on Oversight and Investigations and a longtime Blackwater critic, said the new name won’t change the fact that its actions have resulted in the deaths of innocent civilians.

“Blackwater’s notorious reputation will outlast its name,” she said.

Fitch Goes Negative on California Toll Roads
Record low traffic levels call into question the financial viability of Orange County, California toll road projects.

A major credit rating agency sees grim times ahead for toll road operators in Orange County, California. Earlier this month Fitch Ratings downgraded to “negative” its assessment of one of tolling projects operated by the publicly run Transportation Corridor Agencies (TCA). In reaching this conclusion, Fitch considered the performance of the Foothill/Eastern Corridor (F/ETCA) toll roads — Routes 241, 161 and 133 –which stretch twenty-four miles from Yorba Linda to Rancho Santa Margarita and Irvine.

“The Negative Outlook reflects the significant economic weakening of the F/ETCA’s service area and resulting declines in traffic and revenue,” the ratings report explained. “If weak economic conditions are prolonged, the lower base of traffic could make the F/ETCA much more dependent upon frequent toll increases at or above inflation to meet growing debt service obligations…. Debt service obligations on the facility are scheduled to increase by over 11 percent between fiscal 2009 and 2010, and by 47 percent from fiscal 2009-2015.”

Orange County has been harder hit by the economic downturn than most other parts of California. The county’s 1.8 percent loss in employment and and a 30 percent drop in housing prices both far exceed statewide averages. That hardship has translated into fewer motorists willing to pay to use the TCA’s toll roads.

Traffic dropped 4.2 percent on the 241/161/133 corridor during fiscal 2008. The first half of fiscal 2009 saw an additional 7.9 percent decrease. Fewer paying customers meant a 3.8 percent revenue loss in fiscal 2008, a gap which widened 8.3 percent in the first half of fiscal 2009. Although average annual toll hikes on the corridor have been kept to just 2.1 percent, that amount is planned to jump to 7.6 percent between now and 2016. The fear of revenue loss has also created a financial incentive for public officials to ensure congestion is maintained on the nearby Interstate 5 freeway.

“The rating also incorporates the significant leverage on the project with… the need for continued traffic and revenue growth, and the vulnerability of the facility to prolonged adverse developments or capacity enhancements on competing free facilities such as I-5,” Fitch noted.

The other project maintained by TCA is already rated at “BB” or junk bond status for $226 million in senior lien toll road revenue bonds covering the San Joaquin Hills Toll Road. This road, known as Route 73, stretches 17 miles from Costa Mesa to Mission Viejo. Fitch gave Route 73 a stable outlook because of the TCA’s willingness to overlook the needs of the motoring public.

“The ‘BB’ rating reflects the strength of the SJHTCA’s service area, an established base of traffic, and management’s demonstrated willingness to raise rates and act in the interest of bondholders,” the report stated. “In addition, the rating reflects the future financial challenges faced by the SJHTCA which are evidenced by high leverage and a continually increasing debt service schedule with a $15 million or 16 percent increase in debt service obligations in 2012, and similar increases every three to four years until 2033. Additionally, the SJHTCA will need to remain at its revenue maximization point for the foreseeable future to prevent a default, thus limiting its ability to deal with short-to-medium term disruptions from economic cycles between now and the final maturity of the debt in 2036.”

The TCA toll hikes hit Route 73 travelers ten times for an average annual toll boost of 6.7 percent — well in excess of inflation. Orange County tolls are already among the most expensive per-mile of any Fitch-rated roads. Despite the higher charge, a 10.2 percent drop in traffic revenue brought revenue down 5.3 percent in fiscal 2009. A continued economic downturn could increase the likelihood of future default.

“In Fitch’s base case scenario … traffic could be expected to continue to grow moderately over time and may very well provide the SJHTCA with enough revenue to prevent a default,” Fitch stated. “Even under Fitch’s stress case scenario which assumes much lower traffic and revenue growth, a payment default would be forestalled to 2025-2030, with liquidity draws beginning in the next few years.”

The best case scenario, however, does not reflect the $120 million in developer fee revenue that must be repaid unless a planned southern extension of the 241 toll road begins construction by 2016. The extension was recently thwarted by anti-road activists who succeeded in convincing the right people that building the new toll road would ruin surfing in the area. Even if environmentalist factions could be satisfied by an alternate route, Fitch questioned the ultimate ability of the toll road agency to fund the new road’s construction without massive toll increases well beyond the inflation rate on existing roads.

Myrtle Beach Asks Atlantic Beach for Biker Ban

Atlantic Beach, SC - (AP) — Officials from Myrtle Beach want their counterparts in nearby Atlantic Beach to join them in getting rid of motorcycle rallies.

The Sun News of Myrtle Beach reports that leaders in Atlantic Beach say the annual rally that attracts black motorcyclists makes money for the town.

Councilman Donnell Thompson says he would consider banning the rally if Myrtle Beach helped his town with its financial problems.

Myrtle Beach passed 15 laws last year designed to get rid of two May motorcycle rallies — the Harley-Davidson spring rally that attracts mostly white riders, and the Atlantic Beach Bikefest.

Myrtle Beach City Manager Tom Leath detailed the new laws at the meeting, and said it is time to regain control of the Grand Strand.

S.C. becomes focal point to track funds for gangs, narcotics

South Carolina’s political and military leaders fear that U.S. street gangs are conspiring with international terrorists, an alarming scenario they said highlights the need for a specialized unit that targets major drug runners and their bankrollers.

And they want the South Carolina National Guard to run the federally-funded pilot program.

U.S. Reps. Joe Wilson and Henry Brown, both Republicans, have asked U.S. Secretary of Defense Robert Gates to back the creation of a military unit that would bridge a perceived security gap between the international drug trade and the war on terror.

“The National Guard has the capacity and the authority to play a unique role in our nation’s counter-narcotics mission,” Wilson told The Post and Courier. “The counter-narcotics pilot program would specifically target the illicit finance generated by the narcotics industry here at home and abroad which is used to fund terrorist operations around the world.”

Proponents said a successful program in South Carolina could serve as a national model and that several factors make the state a strategic location to set up shop:

–The state boasts an abundance of major military installations and resources that already serve key national security roles, including Charleston Air Force Base and its fleet of C-17s, Charleston’s port and the Navy brig, which has housed terrorism suspects.

–Organized gangs with international ties already are operating in the state. One of these organizations, the notorious Mara Salvatrucha-13 (MS-13), has possible links to hostile groups in Afghanistan and the Middle East, according to Wilson and Brown.

–Wilson cites a new report by the Congressional Research Service on the emerging international threat posed by the MS-13 and 18th Street gangs. The report states that “alarms have been sounded in some circles that international terrorist organizations such as al-Qaeda could exploit alien and narcotics smuggling networks controlled by these gangs to infiltrate the United States.”

–The state National Guard already is working in some counter-narcotics programs, and its citizen soldiers are accustomed to collaborating in drug investigations with state and local law enforcement.

But questions remain. Among them: How strong is the evidence linking terrorists, gangs and drug-trafficking? How would this new program square with existing federal, state and local drug enforcement efforts? And is South Carolina the best place for this mission?

The gang connection

Gang activity in South Carolina has increased steadily over the past decade as these criminal organizations have spilled from urban centers into rural and suburban nooks across the nation in search of new territory and customers.

In 2004, the state Law Enforcement Division had identified 84 groups in South Carolina that fit a general definition of a gang: an organized group of five or more people who adopt a common name and engage in crime. By 2007, that figure had ballooned to 325 identified gangs, authorities said.

The number of crimes attributed to gangs has mushroomed as well. In 2007, gangs were linked to more than 950 crimes in South Carolina, including drug trafficking. By comparison, 370 gang-related crimes were reported statewide in 2001, according to SLED.

Many of these groups are what police describe as “hybrid gangs,” small, independent groups connected by turf or friendship. But highly organized gangs with cross-border connections also are present — gangs such as MS-13, Surenos, 18th Street and the Mexican Mafia.

“The number of Hispanic gangs is drastically growing,” said Special Agent Nicole Bryan, SLED’s coordinator on gangs in the Midlands. “As the Hispanic community has grown, Hispanic gangs have increased as part of that growth.”

Across the country, MS-13 and other gangs increasingly have become involved in narcotic trafficking at the wholesale level. They’ve cultivated connections with Mexican drug cartels and other power criminal organizations to gain access to international suppliers and large- volume shipments, according to the National Drug Intelligence Center. These affiliations have increased the availability of illegal drugs and the profits flowing out of the country.

The revenue stream is huge, with traffickers employing myriad of methods to launder and smuggle drug money to foreign destinations. The drug intelligence center estimates that Mexican and Colombian drug traffickers generate and launder as much as $39 billion in wholesale profits annually, much of which is smuggled out of the United States along the Mexican border.

Over the years, South Carolina has emerged as a key distribution point in this narcotics pipeline, serving as a smuggling route for drugs from California, Florida, Georgia, New York, Texas and Mexico. South Carolina’s location along Interstates 95 and 85, between New York and Florida, makes it ideal for drug runners shipping marijuana, cocaine, methamphetamine and heroin along the Eastern Seaboard, according to the U.S. Drug Enforcement Administration.

“Project 9496″

The pilot program would target this stealthy underworld of drugs and money. The new unit is shrouded in secrecy, with scant details of its origin, funding and status. The Pentagon refers to the program as “Project 9496.”

Col. Pete Brooks, director of public affairs for the S.C. National Guard, said it’s too early to talk about the effort in detail. “We are not even out of the blocks yet. This whole new mission is at the ‘good idea’ stage and is not funded.”

But a Jan. 14 letter from Deputy Assistant Secretary of Defense Richard J. Douglas to the National Guard Bureau indicates the pilot program already is approved. The letter states that the South Carolina Counter Narco-Terrorism Pilot Program is to be run and funded separately from an existing network of states’ National Guard counter-drug units.

Brooks said the pilot program would expand the South Carolina Guard’s anti-drug unit, which employs 40 full-time employees and hires about a dozen temporary workers each summer to help destroy marijuana crops.

The program receives about $1.6 million in federal money each year in support of the drug eradication efforts of SLED and local police agencies. How the two agencies would partner under the pilot program is unclear because SLED considers it only “an idea at this point,” according to a statement the agency issued in response to questions from the newspaper. Exactly how much the program would cost also remains unclear.

The letters of support from Brown and Wilson suggest that Gov. Mark Sanford also is pushing for the new mission. But Sanford’s press secretary, Joel Sawyer, said the governor was unaware of the proposal until The Post and Courier inquired about it.

After discussing the plans with state Guard officials, however, Sanford thinks the program is “an intriguing idea,” Sawyer said.

Still, the program’s status and future remains unclear. The National Guard Bureau said federal seed money was set aside only to study the program’s feasibility. The agency couldn’t provide a figure.

Tracking the money

Efforts to choke off terrorist financing began in earnest after the Sept. 11, 2001, attacks, with then President George W. Bush announcing two weeks later a “major thrust of our war on terrorism … a strike on the financial foundation of the global terror network.”

Within months, the U.S. government froze the assets of dozens of alleged terrorists, banks and nonprofit groups.

Investigators learned that al-Qaida financiers used everything from electronic transfers to camels to move money and fund their operations. Making matters even more challenging was the existence of the hawala system, a centuries-old money loan and transfer system that is based on the honor system among brokers across the world.

Unlike traditional banking systems, which leave trails of paper and records, hawalas typically don’t keep records of individual transactions.

But financing experts and government officials have said tracking down terrorism financiers has suffered in recent years. A report last year by the Paris-based Financial Action Task Force said international efforts have had limited success and that the United States and other countries need to create new counter-terrorism techniques.

Reports by the Government Accountability Office in the past two years have said the nation needs an “integrated strategy to coordinate the delivery of counter-terrorism financing training.” A Pentagon report in 2007 called for “one over-arching organization” devoted to international terrorism financing.

John Cassara, a former CIA officer and U.S. Treasury Department agent, said the military in recent years has become more focused on narco-terrorists and their paymasters. He said that this emphasis is a natural outgrowth of the military’s efforts in Afghanistan, where most of the world’s opium is produced.

“We’ve seen over the years how the Taliban has used it to bankroll their operations,” said Cassara, author of “Hide & Seek - Intelligence, Law Enforcement and the Stalled War on Terror Finance.” “The classic line is that if you take away the money, there’s no terrorism. The military realizes this.”

But Cassara said he hasn’t seen any solid evidence showing connections between Latin American gangs and Central Asian and Middle Eastern terrorism. “Could it happen? Absolutely. Does it happen? Frankly I don’t know,” he said, adding that organized criminal gangs are “opportunists, and they will naturally reach out to organizations that can facilitate their operations.”

A recent assessment from the National Drug Intelligence Center reached a similar conclusion, saying such connections are possible but not supported by evidence. The report identified U.S. prison gangs that have spread outside the bars as having the most potential for relationships with terrorists.

While government officials know of no concrete connection between gangs selling drugs in the United States and Middle East terrorist groups, authorities have long known that terrorist organizations in South America, especially in Colombia, fuel much of their activity with drug money. And authorities say they have watched with growing concern as Nigerian criminal groups increasingly have brought drugs, some of it from the Middle East, into this country, including the Southeast.