Thursday, June 18, 2020

Karachi, Paris, Luxembourg : l’affaire Karachi des sous-marins français se conclue sans faire de vagues.


Le soleil se couche sur les sous-marins










Karachi, Paris, Luxembourg : l’affaire Karachi des sous-marins français se conclue sans faire de vagues.


La presse internationale me semble en plongée profonde. Alors que l’affaire Karachi atteint son point d’ébullition, elle ne dit mot. Pourtant, l’étau s’est fermé sur le cercle des initiateurs et initiés de ce monument de corruption. Cette semaine, six acteurs dont un ancien ministre ont été condamnés à des peines de prison. Et l’affaire reste à suivre comme un long feuilleton en dernière saison.

On aura vu un trafic, pardon, une vente d’armes : des sous-marins construits en France. Des politiciens maîtres des mots et leur consiglieri recevoir et payer des pots de vin pour financer leurs intrigues. Ajoutons des services secrets, beaucoup de blanchiment d’argent, de la fraude, un attentat tuant 11 ingénieurs français à Karachi, le financement occulte des campagnes politiques et des plats qui se mangent froid. Je regarderai le film qui sera peut-être financé par l’office luxembourgeois pour la production cinématographique ? Ou par les deux sociétés créées à Luxembourg par les conspirateurs, Heine et Eurolux, moteurs de la machine à laver.

Très visible et avec le recul, presque amusante est cette composante luxembourgeoise dans l’affaire Karachi. La place financière était un outil du crime, et on revisite 25 années d’itérations autour du secret bancaire luxembourgeois. Le business plan luxembourgeois était génialement simple : nous recréons le secret suisse à Luxembourg. L’image de marque sera le secret bancaire absolu. Vous venez cacher votre argent chez nous. On ne dira rien. Et, bien-sûr, vous n’allez jamais faire pression sur nous pour éliminer ce secret.

Surprise ! En 2010 la justice luxembourgeoise a donné suite à une commission rogatoire française. Le rapport de la Police luxembourgeoise dévoile l’existence de deux entités utilisées pour divertir des fonds, pour les blanchir et redistribuer. C’est sans doute une importante pièce à conviction. Adieu le secret bancaire et bon débarras. recul, presque amusante est cette composante luxembourgeoise dans l’affaire Karachi. La place financière était un outil du crime, et on revisite 25 années d’itérations autour du secret bancaire luxembourgeois. Le business plan luxembourgeois était génialement simple : nous recréons le secret suisse à Luxembourg. L’image de marque sera le secret bancaire absolu. Vous venez cacher votre argent chez nous. On ne dira rien. Et, bien-sûr, vous n’allez jamais faire pression sur nous pour éliminer ce secret.

C’était beau de voir la coopération franco-luxembourgeoise dans la lutte contre le crime financier. Au fait les deux systèmes judiciaires opèrent aussi à la même vitesse.









Monday, May 25, 2020

A French Template for a US Scandal: L’Affaire Dreyfus - Flynn.



Ile du Diable - Devil's Island, Photo ET 1988























A French Template for a US Scandal: L’Affaire Dreyfus Flynn.

“L’affaire Dreyfus” is named after Alfred Dreyfus, a French Army Captain of Jewish descent. In 1894 Dreyfus was wrongfully accused of spying for the German Embassy in Paris.
The French counterintelligence who had planted a spy at the German Embassy intercepted a handwritten communication with secret arms information from an unknown French officer. The handwriting was falsely attributed to Artillery Captain Alfred Dreyfus.
Dreyfus was convicted of treason, publicly degraded, dishonored, his saber broken as the ultimate symbolic punishment. This very public and spectacular case split French public opinion along the fault lines of political preferences.
Captain Dreyfus who always claimed his innocence was handed a life sentence. He was brought to the terrible “Devil’s Island” off the coast of French Guyana, where he was the lone prisoner. Devil’s Island lies in shark infested waters and had been shuttered as a prison. It was reopened specially for Captain Dreyfus’ detention, a sign that this perfect isolation was meant to be vengeful and protect the biased prosecutors.
The passions were flowing when a new head of military intelligence, Lieutenant Colonel Georges Picquart discovered that the handwriting belonged to someone else, to Army Major Ferdinand Walsin Esterhazy.
Public opinion until there had been fueled largely by a partly antisemitic press obedient to the establishment. The French General Staff had willfully supported the demise of Captain Dreyfus as a welcome distraction from their own problems of the day. The new suspect, Esterhazy was indicted but hastily cleared from his accusations by a court at the orders of political interests. Picquart the whistleblower was even arrested, and later “promoted” to Northern Africa. The “Affaire” had become an “Affaire d’Etat” a State Affair. And it was handled accordingly for the sake of the “Raison d’Etat”. Raison d’Etat invokes purely political reasons for a government to act without transparency, justice, or honesty in the higher interest of the State. Some call this “Deep State” at work.
French intellectuals started expressing more and more concern about what they saw as a miscarriage of justice by a dysfunctional State. Public opinion split into “Dreyfusards” and “Anti-Dreyfusards”. In 1898 famed French writer Emile Zola wrote an open letter to the French President to protest the wrongdoings. The letter was published on the front page of a newspaper, “L’Aurore” under the headline “J’accuse”. Emile Zola denounced the conspiration and collusion at the highest levels of the State and he named names.
As expected, Zola was sued. He eventually fled into exile to London. Picquart was arrested again. The pressure for a retrial of Captain Dreyfus however was growing. Those opposed claimed “res judicata” that the matter had been adjudicated and cannot be brought again. In 1899 though the Supreme Court gave its agreement for a retrial. Dreyfus was brought back from Devil’s Island. The Martial Court however sentenced him again to 10 years in prison this time, though it conceded mitigating circumstances. He was offered a Presidential pardon, but in exchange had to plead guilty. Thus “Raison d’Etat” was given a way out of embarrassment and out of individual consequences for the conspirators.
Dreyfus was rehabilitated in 1906 and reintegrated the Army as a Major. In the meantime, Zola had written “Truth”. I visited Devil’s Island in 1988. It is a place of horror in Paradise under the palm trees.
Back to the US and three-star US General Michael Flynn. In 2017 Lt. Gen. Flynn became President Trump’s National Security Advisor. He has the credentials of a highly competent military leader. A registered Democrat, he was retired early in 2014 upon disagreement with military strategies in the Obama Administration. Caught in the “Russian collusion” epic, he was accused of dealing with the enemy, he was fired, pursued, ruined, disparaged.
Does this sound familiar? After seeing the plot as it developed in the “Affaire Dreyfus”, what looks similar? It is open to anyone to conclude based on these keywords in the Dreyfus story: spies intercept communications, they wrongfully accuse one individual, he is publicly shamed, the spies use forgeries, the individual is sentenced in a miscarriage of justice, he is ruined, he needs to plead guilty to obtain some mercy, authorities invoke “res judicata” to bar any reopening of the case. Devil’s Island in this case is symbolic for Flynn going through hell. As for the Raison d’Etat behind all of this, history will have the final word.
Are you now a Dreyfusard or an anti-Dreyfusard?
****
For readers outside the US, a bit of an encyclopedia about typical US practices, as they appear in judicial news about the Flynn case. These practices have always made me wonder:
  •        FISA Court, the Foreign Intelligence Surveillance Court, is a secret Court approving electronic surveillance and other means of investigation for foreign intelligence purposes. The targeted individuals don’t know that they are a Court case. Compare to the European Convention on Human Rights, article 6: “In the determination of his civil rights and obligations or of any criminal charge against him, everyone is entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal established by law.”
  •        Federal judges. They are appointed for a life term, which is a protection to keep them independent. Does it keep them honest?
  •        Plea deals: when the accused in a criminal case pleads guilty in exchange for reduced sentencing. In an extremely costly judicial system as is in the US, it is a questionable practice, as a guilty plea can be coerced out of an individual who just cannot afford to fight the accusations. It is even more of a danger in a system where law-enforcement can entrap a person into contradictions, or even lead someone willfully into criminal behavior and then make an arrest. It is called framing. But you already knew that from watching Hollywood movies.


Monday, April 6, 2020

Where are the Banks?



We already stop taking applications.
Your call is very important to us.






















Where are the Banks?

I hear from small businesses the good and the bad news.
The good news is that the Coronavirus Aid, Relief and Economic Security Act, or CARES, Act with its Paycheck Protection Program was conceived to immediately help small employers to keep employees and bridge 8 weeks of confinement.
The bad news is the small business needs to apply through a bank. The larger the bank however, the more resistance to the program there seems to be. They say they need clarification about their liability. They were closed over the weekend. There was no sense of urgency.
Back to 2008, when everyone including small businesses saved the banks. Every taxpayer, every small business shouldered part of the mess created by toxic bank products. Action was needed over the weekend. There was a sense of urgency. Immediate action was taken back in 2008.
Banks sit on the results of an economy that was still booming a month ago. For years the Federal Reserve and the public has provided banks with almost zero cost funds. But they don’t seem to be too excited to send the elevator back to those who saved them. Again, it is that individual taxpayer that backs and complements the indispensable relief action intended by the government. The average citizen multiplies initiatives to volunteer and support neighbors, the elderly, and even hospitals. But the banks have problems with urgent loans that are guaranteed by SBA and are essentially forgivable?
An update: Wells Fargo shows its hand:

Wednesday, April 1, 2020

Luxleaks now even more user-friendly: ICIJ unleashes Datashare

My Orchids: Dendobrium "Datashare"




















Luxleaks now even more user-friendly: ICIJ unleashes Datashare

Soline Ledésert from the International Consortium of Investigative Journalists ICIJ reports: “Datashare, ICIJ’s open-source document analysis tool, is now available online via a web browser, complete with more than 1,000 files from the Luxembourg Leaks investigation.”  

Read more at: 

Explore company secrets in Lux Leaks using Datashare.




Monday, March 9, 2020

LuXXXembourg Nation Branding: Porn Sites R Us.



This is not it!

























LuXXXembourg Nation Branding: Porn Sites R Us.

Luxembourg has a national program to promote the image of the country, through an agency in charge of “Nation-Branding”. “Let’s Make it Happen” slogan summarizes the ambition of Luxembourg’s Nation Branding. It happened 42,000,0000,000 last year.

That’s 42 billion visits last year to Pornhub owned by Mindgeek, headquartered at 32 Boulevard Royal, L-2449 Luxembourg. Trust this but want to verify? That number is +352 208880 900. With that bleeding edge porn company Luxembourg can boast to be the home of the “industry-leading exclusive technologies driving unparalleled performance”. See, Luxembourg makes it happen!

Or in other terms, Luxembourg makes it happen daily for 115 million Pornhub visitors! Which is good enough for them to claim, “high volume of traffic and market penetration”. Interested to join the team? “Explore openings” and “check out our latest positions available at Mindgeek”.

Interrupting that bright business model according to TheGuardian, is a petition started by a US group called Exodus Cry, accusing Pornhub to protect rape and revenge porn. Mindgeek denies and assures that it has solid procedures in place to remove illegal content.

There are no known reactions from Luxembourg authorities yet. But given Luxembourg’s harsh treatment of hateful language on social media (people got jail terms), it will be a challenge to upset one of the standard bearers of Nation Branding with similar harshness.






Wednesday, March 4, 2020

Happy 50th Birthday Cargolux
















Happy 50th Birthday Cargolux

Fifty years ago, some intrepid founders got together to get Cargolux off the ground. I remember the visionary founder Johannes Einarsson and the group Salen which later played the role of the inspiration for the Luxembourg Shipping Register. I need to write that story.

When Cargolux was still a teenager, I had the unique experience to fly on Cargolux flights to the Far East accompanying then Crown Prince Henri on missions of the Luxembourg Board of Economic Development. Then we were mindful of cost-cutting solutions. Most flights had 16 seats on the upper floor. On one occasion there were live animals below.

Cargolux provided for many adventures. The landing rights across the world were a continuous source of excitement for the company. Then there were the less glorious moments, such as the incredible Qatar Airways story, discussed in this blog at the time. Cargolux has survived all the storms. Which is quite an achievement in a cut-throat market.







Saturday, August 31, 2019

Why has the European Commission not investigated Lux Leaks tax deals?




My Orchids "Transparency"








































By:

Simon Bowers
Britain

Simon Bowers, Great Britain, is an ICIJ reporter and Europe partnership coordinator.

The  article goes back to February 2019. No, six months later nothing has disturbed the comfortable silence about this story. Though there are still some related legal actions. 

One noticeable one is a court case brought by the Luxembourg government before the European Court of Justice against the European Commission, still headed by a Luxembourg politician, Jean-Claude Juncker, former decades long Prime Minister of the Grand Duchy of Luxembourg. At issue is the determination that Amazon, establishing operations in Luxembourg, owed the Luxembourg State 250 million in taxes after the company took advantage of a legendary Luxembourg tax break. The Luxembourg government rather went to Court than taking the money.

European tax rulings are still competing towards a de facto zero tax for international corporations.