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Crooked Bank May Be Tie Between Prince Bandar, Big Defense Contractor
Accusations continue to swarm about a British defense corporation's alleged kickbacks over 20 years to Prince Bandar, the former Saudi ambassador to the United States.
Last week, the BBC and the Guardian reported that BAE Systems, the world's fourth-largest defense company, paid approximately $2 billion to an Saudi account in the now-defunct Riggs Bank controlled by Bandar as part of Britain's largest-ever defense deal. That purchase, known as al-Yamamah, brought Britain over $80 billion in Saudi money in return for BAE-manufactured aircrat in 1985, and has been a fruitful target for UK scandal-watchers ever since. Tony Blair personally scotched an investigation by his government's Serious Fraud Office into the alleged kickbacks in December, and he reaffirmed that decision last week when the Bandar allegations broke, saying, "I don't believe the investigation would have led to anywhere except to the complete wreckage of a vital interest to our country."
Both Bandar and BAE strongly maintain their innocence. BAE claims that paying the money into the Saudis' Riggs accounts was an above-board investment in "local advice, capabilities and guidance" in order to ensure the purchase went smoothly. Bandar's lawyers released a statement saying that the prince was an "authorized signatory" to the accounts, which were controlled by the Saudi Arabian Ministry of Defense and Aviation (MODA), and any withdrawals were used "exclusively for purposes approved by MODA." Bandar's father, Prince Sultan, is the Saudi defense minister.
Following lengthy investigations by the Treasury Department and the Senate, in 2005, Riggs Bank, once one of the most prestigious banks in the U.S., admitted its guilt in numerous money laundering schemes involving, among others the Saudi Embassy to Washington (which Bandar helmed), former Chilean dictator Augusto Pinochet, and the government of Equitorial Guinea. According to this week's Newsweek, Riggs's documentation of its Saudi accounts may contain clues about what Bandar in fact received from BAE:
The Riggs Bank records show the use of those funds raised concerns among bank officials and U.S. regulators. In November 2003, Riggs filed a "suspicious activity report" with the Treasury Department disclosing that over a four-month period, $17.4 million from the Saudi Defense account had been disbursed to a single individual in Saudi Arabia. When Riggs officials asked the Saudis who the person was and why he was receiving the funds, they were told the individual "coordinates home improvement/construction projects for Prince Bandar in Saudi Arabia," and the payments were for a "new Saudi palace," one document shows.In another instance, Bandar wired $400,000 from a Riggs account to a luxury-car dealer overseas. "It was impossible to distinguish between government funds and what would normally be considered personal purposes," said David Caruso, who served as Riggs's compliance officer at the time. Caruso also confirmed to NEWSWEEK that the Saudi Defense account was regularly replenished with $30 million each quarter from an account in London. But the bank never knew the source of the funds. The bank was so concerned about the withdrawals that it cut off all business with the Saudis. In May 2005, the U.S. Treasury fined Riggs $25 million for failing to monitor "extensive and frequent suspicious" activity in Saudi and other accounts. (Asked about the Riggs records, Bandar's lawyer said the palace in question was "Prince Bandar's official residence" in Saudi Arabia and that audits by the Saudi Finance Ministry found "no irregularities" in the Saudi accounts while Bandar was ambassador.)
Look for more to come out of the Riggs collapse involving Bandar in the near future.
Josh
Zachary
A few years ago, I read that Bandar and his father had $60 million invested in the Carlyle Group. I wonder if any of the Saudi money in the Riggs account was wired to Carlyle.
June 12, 2007 6:13 PM | Reply | Permalink
I want to know if BAE makes those big machine guns the sunnis in Iraq were using to shoot down helicopters?????
June 12, 2007 6:43 PM | Reply | Permalink
I want to know if BAE makes those big machine guns the sunnis in Iraq were using to shoot down helicopters???
June 12, 2007 6:45 PM | Reply | Permalink
Anyone remember Lowell Bergman's "Frontline" interview with Bandar Bush? Bless their hearts, a transcript remains posted there. The prince's philosophy on bribery goes something as follows:
http://www.pbs.org/wgbh/pages/frontline/shows/terrorism/interviews/bandar.html
Bergman: But we have talked to intellectuals, doctors, dissidents who are not in the country who say that to do business in Saudi Arabia, you must have a partner in the royal family. You must have an "in," in the country. It's not an open system. It's a corrupt system. ...
Bandar: You know what? I would be offended if I thought we had a monopoly on corruption. I think--
Bergman: You know the image, though. You know what I'm talking about.
Bandar: Yeah, I know the image. But you don't know your image either in my country, in my world. In other words, the image of the West is not any better. What I'm saying is, if you have house of glass, don't throw stones.
But the way I answer the corruption charges is this. In the last 30 years, we have implemented a development program that was approximately ... close to $400 billion worth, OK? Now, look at the whole country, where it was, where it is now. And I am confident after you look at it, you could not have done all of that for less than, let's say, $350 billion.
If you tell me that building this whole country, and spending $350 billion out of $400 billion, that we misused or got corrupted with $50 billion, I'll tell you, "Yes." But I'll take that any time. There are so many countries in the Third World that have oil that are still 30 years behind. But, more important, more important -- who are you to tell me this? ... What I'm trying to tell you is, so what? We did not invent corruption, nor did those dissidents, who are so genius, discover it. This happened since Adam and Eve. ... I mean, this is human nature. But we are not as bad as you think. ...
June 12, 2007 6:46 PM | Reply | Permalink
"audits by the Saudi Finance Ministry..."
Now that is funny.
June 12, 2007 6:46 PM | Reply | Permalink
Anyone remember Lowell Bergman's "Frontline" interview with Bandar Bush? Bless their hearts, a transcript remains posted there. The prince's philosophy on bribery goes something as follows:
http://www.pbs.org/wgbh/pages/frontline/shows/terrorism/interviews/bandar.html
Bergman: But we have talked to intellectuals, doctors, dissidents who are not in the country who say that to do business in Saudi Arabia, you must have a partner in the royal family. You must have an "in," in the country. It's not an open system. It's a corrupt system. ...
Bandar: You know what? I would be offended if I thought we had a monopoly on corruption. I think--
Bergman: You know the image, though. You know what I'm talking about.
Bandar: Yeah, I know the image. But you don't know your image either in my country, in my world. In other words, the image of the West is not any better. What I'm saying is, if you have house of glass, don't throw stones.
But the way I answer the corruption charges is this. In the last 30 years, we have implemented a development program that was approximately ... close to $400 billion worth, OK? Now, look at the whole country, where it was, where it is now. And I am confident after you look at it, you could not have done all of that for less than, let's say, $350 billion.
If you tell me that building this whole country, and spending $350 billion out of $400 billion, that we misused or got corrupted with $50 billion, I'll tell you, "Yes." But I'll take that any time. There are so many countries in the Third World that have oil that are still 30 years behind. But, more important, more important -- who are you to tell me this? ... What I'm trying to tell you is, so what? We did not invent corruption, nor did those dissidents, who are so genius, discover it. This happened since Adam and Eve. ... I mean, this is human nature. But we are not as bad as you think. ...
June 12, 2007 6:48 PM | Reply | Permalink
Scratch a scandal and it bleeds bush.
http://www.washingtonpost.com/wp-dyn/articles/A28396-2004May14.html
"A political Web site written by a Democratic operative drew attention yesterday to the fact that (p)resident bush's uncle, Jonathan J. Bush, is a top executive at Riggs Bank, which this week agreed to pay a record $25 million in civil fines for violations of law intended to thwart money laundering."
More at link.
June 12, 2007 6:48 PM | Reply | Permalink
Interesting that this story comes to the surface at the same time that Bush has hired 9 new lawyers... what's the worry?
I think I need 9 lawyers myself to keep track of all their corruptions.
June 12, 2007 6:58 PM | Reply | Permalink
I'm not sure ole Norm Coleman's going to be able to reopen his Riggs investigation--which, like all of the other Riggs shows was shut down to protect our National Security, ya know, when it started to get hot--because I think when PNC bought Riggs there was some issue about what to with the paperwork and, well, I think they decided that it just wasn't worth keeping around and so they warehoused it and then it was unclear who was going to pay for the warehousing and then...
I could be wrong about that, there are just bits and pieces of the story in google but it shouldn't be too hard to figure out.
And, hey, it's pretty amazing that Norm and the Senate looked so closely at the Princess's payments to the 9/11 hijackers (only a fraction of that paper has been release but it's interesting) and just happened to miss a billion or so in deposits to the Prince. Dang. Also, wasn't Jonathan Bush's company folded into Riggs so that he could manage the accounts of various oil barons? In fact, it seems likely that he directly handled Bandar's accounts and that's why the Senate paperwork is still impounded.
June 12, 2007 7:03 PM | Reply | Permalink
Wasn't one of W's Uncles on the Board of Riggs Bank? IIRC he oversaw their international operations.
June 12, 2007 7:05 PM | Reply | Permalink
I am shocked to hear of corruption at the Riggs Bank. Play it again Bandar.
June 12, 2007 7:31 PM | Reply | Permalink
Please don't be shy about mentioning the role that Joe Allbritton, who owns The Politico. played in this cesspool. That connection needs to be pointed out every time you link to it.
June 12, 2007 7:40 PM | Reply | Permalink
Please don't be shy about mentioning the role that Joe Allbritton, who owns The Politico. played in this cesspool. That connection needs to be pointed out every time you link to it.
June 12, 2007 7:45 PM | Reply | Permalink
Riggs is CIA:
http://www.slate.com/id/2112015/
June 12, 2007 7:46 PM | Reply | Permalink
I love the fact that when you search for 'Bandar Bush' @ The Google, THIS is your top hit...
http://www.whitehouse.org/ask/bandar.asp
June 12, 2007 7:46 PM | Reply | Permalink
Four letters: B-C-C-I. The same type of crimes are continuing. Please, Mr. Ackerman -- keep digging. I hope the Brits do, too.
June 12, 2007 7:54 PM | Reply | Permalink
Four letters: B-C-C-I. The same type of crimes are continuing. Please, Mr. Ackerman -- keep digging. I hope the Brits do, too.
June 12, 2007 7:57 PM | Reply | Permalink
Four letters: B-C-C-I. The same type of crimes are continuing. Please, Mr. Ackerman -- keep digging. I hope the Brits do, too.
June 12, 2007 7:58 PM | Reply | Permalink
David Caruso was Riggs's compliance officer? Wow, he was hard up between "NYPD Blue" and "CSI: Miami." And it shows you what kind of "cop" they wanted running their compliance department.
June 12, 2007 8:10 PM | Reply | Permalink
Um - but I thought that one of the biggest things Bush did in the GWoT was to freeze all the terror financer's assets and accounts, and stop all the money laundering and dirty dealing!
June 12, 2007 8:10 PM | Reply | Permalink
I see my SC is 'waste', and I'm tempted to expand on the relevance to this story...but the adjectives 'absolutely corrupt' were missing from the SC, so I'll just let the one word say it all..
and go don the barf bag.
June 12, 2007 8:12 PM | Reply | Permalink
I see my SC is 'waste', and I'm tempted to expand on the relevance to this story...but the adjectives 'absolutely corrupt' were missing from the SC, so I'll just let the one word say it all..
and go don the barf bag.
June 12, 2007 8:13 PM | Reply | Permalink
Didn't Kerry delve into the BCCI swamp back in the '80s, around the time of Iran-Contra? I just hope that people are playing their hands close to the vest, so that when shit hits fan, it is a coordinated/synchronized attack intended to disarm BushCo.
Can you imagine the international sigh of relief?!?!
June 12, 2007 8:31 PM | Reply | Permalink
No wonder Whore-for-hay wasted the mandate he won in 2008 on the Prince rather than a right Reich religous type. All that scampering, hand holding and coy kissing at Camp David comes into high relief now.
June 12, 2007 8:55 PM | Reply | Permalink
Bush money? Saudi money? Carlyle Group money?
There is no difference.
June 12, 2007 8:59 PM | Reply | Permalink
What a surprise!!! I stated that when the story first broke! British and American are one of the same.
Now, the questions NEED to be ask about the who's and whys and what and how...
This IS a BIG REALLY BIG story, but the media and congress needs to ask hard tough questions to those who had their hands in the "cookie jar."
June 12, 2007 9:34 PM | Reply | Permalink
Get the emails! Rove I am sure is in on this deal!
June 12, 2007 9:35 PM | Reply | Permalink
http://websrvr80il.audiovideoweb.com/il80web20037/ThinkProgress/2007/OAG%201773-1818.pdf
The link above are new emails with Rove and AG!
Check them out!
June 12, 2007 9:47 PM | Reply | Permalink
What else are they buying?
"The Saudis, working through their embassies, have helped bankroll mosques throughout the country, including those run by the Nation of Islam. In exchange for this money, the Saudis have installed militant Wahabbi imams and education at religious centers around the world, including here in North America."
The Saudi link to Wahhabi extremism is covered extensively at http://wahaudi.blogspot.com
June 12, 2007 9:55 PM | Reply | Permalink
Below is one of the emails from the current dump that refers to Harriet about the fireings of the US attorneys. (AG 1797 - file number)
June 12, 2007 9:59 PM | Reply | Permalink
You guys are playing with tiddly-winks here. If you want to explore the real trouble with the Saudis, check out:
www.asecondlookatthesaudis.com
These guys have been getting away with murder for well over a decade now.
June 12, 2007 10:20 PM | Reply | Permalink
I haven't gotten over the 1995 BMW that Prince Bandar gave to retiring Sec of State Colin Powell as a gift days after the announcement of Powells departure. The Prince just happened to remember that Mrs Powell had bemoaned their sale of the original 95 BMW to the solicitous prince yrs before (can you hear their dinner conversations?)and voila he shows up at the powell's door with a replacement. Hands across the waters kinda corruption, the prince knows whereof he speaks. State dept "ethics" people (ridiculous concept in the bushco era, I know) let the Powells keep the car; which despite Mrs Powell's sentimental attachment to the 1995 vintage they subsequently sold. What a den of the thieves, " a parcel of rogues in a nation" as the scottish lament used to say. When will Timmeh ask this ethically challenged windbag of a mediocre general about that deal? Never.
Keep your mouth shut about reasons for unjust illegal immoral war and get a BMW! Guess the pro=ice was right for the Powells.
Barack, don't listen to this traitor one minute more.
Tonyjoe from Baltimore
June 12, 2007 10:36 PM | Reply | Permalink
Every rock turned over, new bugs crawling out. 20 years later there will still be Bush bugs discovered. W's legacy: monumental corruption. Step aside Wrren Harding. Teapot dome was about oil too, but W's gotcha beat.
June 12, 2007 10:54 PM | Reply | Permalink
...Joe Allbritton, who owns The Politico. played in this cesspool...
And, you should add, "Joe Albritton, the most generous campaign contributor to George W. Bush." And, perhaps, "Jonathan Bush, who organized the Bush Pioneers on Wall Street." The Pinochet stuff is also nice. As far as I know, the Albrittons are the only American family sentenced to personally pay restitution to the families of torture and murder vicitm in Chile.
I'd love to see, say, Grover Norquist's reaction to "What I'm saying is, if you have house of glass, don't throw stones." Since GWB handled the Saudi accounts for the CIA during the OPEC crisis, it certainly seems likely that the Saudi's made a contribution here and there to help their US friends.
June 12, 2007 10:54 PM | Reply | Permalink
Every rock turned over, new bugs crawling out. 20 years later there will still be Bush bugs discovered. W's legacy: monumental corruption. Step aside Warren Harding. Teapot dome was about oil too, but W's gotcha beat.
June 12, 2007 10:55 PM | Reply | Permalink
this is very illuminating...
http://www.americanprogress.org/issues/2004/06/b99415.html#3
corruption runs very deep in the Bush family.
June 13, 2007 1:53 AM | Reply | Permalink
That American Progress piece on Saudi-US relations is nice.
At a glance, the Saudis put a lot of money into US lobbying/politics/institutions. How much did Bandar pay for his special relationship with America?
June 13, 2007 3:11 AM | Reply | Permalink
Bank owned by CIA. Named "Rig". Funny ha-ha.
June 13, 2007 7:59 AM | Reply | Permalink
I grew up in Washington and I remember when Riggs was THE conservative (in the real sense) trustworthy Washington bank. Of course, that was before a Bush was affiliated with it.
June 13, 2007 8:28 AM | Reply | Permalink
Anybody want to bet that Riggs funneled bags of untraceable cash to Bush's campaigns? The Saudis bought themselves a U.S. president, financed a massive terrorist attack to give him unlimited power and then sat back and watched him bring America to its knees with Vietnam II and the shredding of our Constitution. But will anybody investigate those connections? Nah, they're just tin hat conspiracy theories, right?
June 13, 2007 9:28 AM | Reply | Permalink
As this bigger cabal of oil and weapons begin to circle their wagons watch out for their inevitible knee jerked reaction. That will likely be the bombing of Iran when in fact it probably should be Saudi Arabia.
June 13, 2007 3:07 PM | Reply | Permalink
We can't know more then a fraction of all the corruption going on, what with so much private wealth invested in non-public holding companies with no reporting requirements.
A secret oligarchy. Who woulda thunk it could happen here?
June 13, 2007 4:59 PM | Reply | Permalink