Rogue Planet

Allegations Lead Army to Review Arms Policy

By C. J. CHIVERS

MOSCOW — The United States Army has begun a broad review of procedures used to supply security forces in Afghanistan and Iraq with foreign arms, prompted by an allegation of fraud and questions about the competence of the main private supplier of ammunition to Afghanistan.

The company, AEY Inc. of Miami Beach, was suspended last month after Army investigators accused it of shipping aged Chinese rifle cartridges and claiming they were Hungarian.

The Army decided to review its contracting procedures as several arms-industry officials said that long before the suspension, it was clear the Army had erred by not recognizing risk factors in AEY’s history and activities, and by being lured by a very low bid.

Problems with the contract, they said, were evident again early this year when AEY’s president was seen shopping for foreign munitions, including shoulder-fired rockets, at an American gun show. The money he was offering, the officials said, was too little to buy quality ammunition.

Lt. Gen. William E. Mortensen, deputy commanding general of the Army Materiel Command, and Jeffrey P. Parsons, executive director of the Army Contracting Command, said last week that based on questions about AEY’s performance and initial inquiries into the contract’s history, the Army had undertaken an extensive review of its arms-contracting standards and procedures and planned to overhaul several.

The contract has drawn the attention of three Congressional committees, which are expected to hold hearings in the next few weeks.

Exiled leader arrested in Spain over arms trafficking

After Simon Mann and a band of South African mercenaries couldn't overthrow the government, Moto takes things in his own hands and tries to stage his own coup, using weapons in his car. Great country, that Equatorial Guinea place...

Exiled leader arrested in Spain over arms trafficking

By Madrid Bureau Chief Al Goodman
For CNN
MADRID, Spain (CNN) -- Spanish police have arrested Equatorial Guinea opposition leader Severo Moto on suspicion of links to arms trafficking, a National Court spokeswoman told CNN on Tuesday.

Moto, 64, has been living in exile in Spain, the former colonial power in Equatorial Guinea.

He was arrested in Toledo province, south of Madrid, for alleged links to weapons found in a car in the port of Sagunto, in southeastern Spain. The car was allegedly to be shipped to Equatorial Guinea, said the court spokeswoman, who asked not to be identified.

Moto is due to appear before a judge at the National Court, probably on Wednesday, the spokeswoman said.

Last month, Spain's Supreme Court upheld a request to grant political refugee status to Moto.

He had enjoyed refugee status since the Spanish government granted it in 1986. But the government revoked the status in January 2006, leading Moto to launch a series of appeals which ultimately took him to the Supreme Court.

The U.S. State Department says courts in Equatorial Guinea have convicted Moto several times in absentia for attempting to overthrow the government.

He leads a banned opposition party called the Progress Party of Equatorial Guinea, according to Amnesty International, which has monitored his trials at home and has called them unfair.

[cnn.com]

Arms trader also bought from Slovakia

14 Apr 2008 Tom Nicholson Politics & Society

AN ARMS trading company under investigation by the United States Congress for supplying worthless ammunition to Afghani forces recently bought weapons in Slovakia, The Slovak Spectator has learned.
AEY, Inc. of Miami Beach was awarded a $298 million contract in January 2007 by the US military to act as the main weapons procurer for native Afghani police and armed forces. However, the company lost that deal at the end of March after The New York Times reported that it had bought sub-standard, decades-old Chinese ammunition and weapons from Albania and then sold them to Afghani troops, claiming they were of Hungarian manufacture.

The firm also bought guns and ammunition for its Afghan contract in former Communist countries like Bulgaria, Romania, the Czech Republic and Slovakia, according to the Times. Afghani troops are equipped mainly with old Soviet-made weapons, and thus cannot be supplied from surplus Western stock.
AEY was listed as the "foreign contractual partner" on an export license for over 1.6 million rounds that it had obtained from the Slovak companies Petina International and ZVS Holding. The license was issued by the Economy Ministry on March 18.

Neither ZVS director Miroslav Solava nor business director Vladimír Ďuriš, both of whom signed the licence request, responded to repeated requests for comment. From its own stock, ZVS provided one million 7,62mm rounds, which fit machine guns of the kind used in former Warsaw Pact countries.

Petina, meanwhile, provided 636,435 rounds of [12.7 x] 108mm ammunition, which fits anti-aircraft machine guns. The company originally acquired the ammunition in 2002 from the Defence Ministry. "There must be some kind of mistake," said Petina boss Peter Peniaška. "We have nothing to do with them [AEY]."

John Kerry boards bandwagon, writes letters

Finally, John Kerry and hard working, legitimate arms dealers have something in common...

Kerry Investigates Contracts Awarded to Firm That Supplied Faulty Arms to Troops

U.S. Senate Committee on Small Business & Entrepreneurship

WASHINGTON, April 10 -- A small business recently under fire for delivering faulty munitions to Afghan security forces may have fraudulently obtained as many as 50 contracts with the Defense and State Departments by claiming to be a Small Disadvantaged Business. Senator John Kerry (D-Mass.) today called on the Departments of Defense and State to explain how Miami-based AEY Inc. was erroneously labeled as a Small Disadvantaged Business, which helps companies access the federal contracting arena, and if this mistaken designation helped the company secure $298 million in defense contracts in 2007.
"Faulty contracting procedures and deficient safeguards are no excuse for putting troops in Afghanistan and Iraq in greater danger," said Senator Kerry, Chairman of the Committee on Small Business and Entrepreneurship. "The Bush Administration needs to explain how and why this mistake occurred not once, but 50 times, and what steps they are taking to make sure that it never happens again."

Senator Kerry called for greater oversight of the contracting process by the Defense Department, State Department, and Small Business Administration. Under contracting guidelines, federal agencies receive credit for meeting Congressionally mandated small business goals when they contract with a Small Disadvantaged Business.

According to a recent news article, AEY was reportedly designated as a Small Disadvantaged Business on June 8, 2006 by the State Department, despite the fact that they had never filed an application or been designated as a Small Disadvantaged Business by the Small Business Administration. AEY went on to obtain 49 additional contracts despite not being designated as a Small Disadvantaged Business in the Central Contractor Registry, a database that lists firms eligible for contracts and their designation status.

Night Vision Manufacturer Charged for Fraud

Canadian Night Vision Goggles Manufacturer and Two Executives Charged in Scheme to Defraud U.S. Military Procurement Unit for Iraq

An indictment by a federal grand jury in San Francisco was unsealed yesterday against a Canadian night vision goggles manufacturing firm and two of its executives for their role in a scheme to defraud the U.S. military in the supply of equipment for the Iraqi army, the Department of Justice announced.

The indictment, returned on Dec. 4, 2007, was unsealed today in U.S. District Court in San Francisco. The indictment charges Michael Beker (also known as Mendel Beker), president and chief executive of Newcon Optik Ltd., Arie Prilik, the former senior vice president of Newcon Optik, and the company itself with two counts each of wire fraud and one count each of conspiracy to commit wire fraud. Beker and Newcon Optik were also each charged with one count of money laundering. Beker was arrested on April 11, 2008 and Prilik was arrested on April 18, 2008. Both arrests were made by the York Regional Police in Toronto, Canada. Beker, Prilik and Newcon Optik Ltd. are charged with attempting to defraud the U.S. Army’s Tank-Automotive and Armaments Command (TACOM), a military unit tasked with equipping and training the Iraqi Army.

The alleged scheme could have resulted in an overcharge to the U.S. military of approximately $11 million. According to the indictment, Beker, Prilik and Newcon Optik agreed to pay a competitor to withdraw from supplying TACOM with night vision goggles. They then envisioned stepping in and supplying TACOM with night vision goggles at a substantially inflated price, the Department said. Beker, Prilik and Newcon Optik made an initial $50,000 payment to a competitor as part of the scheme.

Beker and Prilik each face up to 20 years in prison for the wire fraud counts, and up to five years in prison and a $250,000 fine each if convicted on the conspiracy count. Beker faces imprisonment for up to 20 years and a fine of up to $500,000 if convicted of the money laundering charge. The United States also plans, upon the conviction of Beker, Prilik and Newcon Optik, to seek criminal forfeiture of the $50,000 payment made in the case.

British dealers supply arms to Iran

Investigators have identified a number of British arms dealers trading with Tehran, triggering alarm among government officials who fear Iran's nuclear programme may be receiving significant support from UK sources.

The probe by customs officers suggests that at least seven Britons have been defying sanctions by supplying the Iranian air force, its elite Revolutionary Guard Corps, and even the country's controversial nuclear ambitions.

Officials say they are perturbed by the number of British dealers who appear to be trading with Tehran, despite a third round of restrictions being recently imposed by the United Nations on exporting arms and components to Iran. However, investigators argue that it is the generous riches being offered by Iran, not any shared ideology, that is seducing the dealers.

Among the examples uncovered is the case of a UK businessman caught smuggling components for use in guided missiles through a front company that proved to be the Iranian Ministry of Defence. Another case involves a group that included several Britons which, investigators alleged, attempted to export components intended to enhance the performance of Iranian aircraft.

Other examples involve a British millionaire arms dealer caught trading machine-guns used by the SAS and capable of firing 800 rounds a minute with a Tehran-based weapons supplier.

Customs offers are also working on a number of 'active investigations' which include several Britons and breach sanctions aimed at curbing Iran's military strength.

Businessman faces charges in an illegal helicopter deal

BY JAY WEAVER

A Hallandale Beach businessman has been arrested on charges that he tried to sell 10 Russian military helicopters equipped with guns, rockets and bombs to an undercover federal informant who told the dealer they were destined for Zimbabwe.

Peter Spitz, 70, arrested last week, has a bond hearing set for Tuesday in federal court in Fort Lauderdale.

Military exports to the African country are banned.

Spitz, owner of Russian Aircraft Services LLC, was first contacted in March about a potential helicopter purchase by the informant for Immigration and Customs Enforcement.

According to a criminal affidavit, the informant told Spitz he was interested in buying seven MI-24 Russian attack helicopters and three MI-8T Russian military transport helicopters.

Spitz said the price for each would be $750,000, the ICE affidavit said.

The broker and the informant negotiated the deal this spring, discussing issues such as the potential buyer, required documents and aircraft training.

On March 25, the ICE informant told Spitz that he was arranging the sale to a ''commercial entity set up by a cabinet member of the [Zimbabwe] government,'' the affidavit said.

Spitz reportedly asked for $1 million in five installments to secure the deal.

He allegedly instructed the informant to make two initial ''test'' deposits of $11,000 each for Russian Aircraft Services LLC in separate accounts at Colonial and Wachovia banks. Those April 3 transactions established Spitz's intent to sell the helicopters to the informant, in violation of federal law.

ICE special agent Joseph Skidmore said Spitz ''engaged in illegal brokering activities'' because he had not obtained a defense export license from the U.S. government. He also noted that in April 2002, the government suspended all export licenses for military hardware to Zimbabwe.

[miamiherald.com]

Afghan Troops Told To Lay Down Trusty AK47s

Following Iraq's lead, it looks like the U.S. intends to outfit the Afghan security forces with M16s. While the maintenance of the weapon may be a challenge to the Afghans, the move allows for more streamlined acquisition of weapons via the FMS/Excess Defense Article system, as well as logistics support for spares - not to mention the boost to the U.S. industrial base.

Michael Evans in Helmand

For a country with a fighting history such as Afghanistan, where invading forces have so often been humbled, there could be no greater indignity than to be told to hand over your guns and fight with the weapon of the infidel.

Yet the new recruits to the Afghan National Army (ANA) are being asked to swap their beloved Kalashnikov AK47, probably the most famous weapon in the world, for the American M16.

To judge from the bewildered and disapproving faces of the Afghan soldiers yesterday at Camp Tombstone, the training facility in the middle of Helmand province where the Americans and British train the ANA, the decision to scrap the AK47s for the M16 was not going down too well.

The reason for this dramatic change in the fighting culture of the average Afghan soldier is not to boost the coffers of the American manufacturer of the M16 —- although it undoubtedly will.

Rather, it is designed to improve the efficiency of the ANA and teach its soldiers how to preserve ammunition to ensure that, when a battle is fought, the enemy is defeated before the bullets run out.

Traditionally, the Afghan will fire his Kalashnikov from the hip as he advances, spraying the enemy in all directions on automatic mode until every bullet has been expended.

But that is not the way of the British or American soldier who uses his ammunition stocks with greater husbandry and fires to kill, rather than to deluge the enemy with a wall of bullets.

Afghan inventor develops remote controlled AK security system, makes Afghanistan a safer place

Afghan Engineer Has Kalashnikov, Will Invent
by Soraya Sarhaddi Nelson

Afghanistan has a real-life version of Doc Brown, the kinetically hyperactive and clever inventor in the Back to the Future movies.

Like his fictitious counterpart, Afghan inventor Hanif Molavizadeh isn't widely lauded for his odd creations. But supporters believe his inventions could help fight growing crime in Afghanistan.

Take, for instance, his homemade burglar alarm.

With its urgent ticking, the alarm in a wooden box almost seems to dare someone to try and break into Molavizadeh's one-room home, which doubles as his workshop.

A simple wave of the hand outside the window triggers the alarm's motion detectors and sets off a song-like warning. An automated voice warns there is an intruder.

The contraption then calls Molavizadeh's cell phone. He says he can receive the automated warning from up to four miles away.

He shouts "Hello, who are you?" into his phone, and the sound of his voice is transmitted and broadcast through the alarm box.

If that's not enough to stop a would-be burglar, he says, then remote-firing the Kalashnikov attached to the wooden box should do the trick.

Iraq increases security equipment spending

BAGHDAD, April 3 (UPI) -- Iraqi government officials say they have invested more than $181 million to supply newly minted security forces in the country with equipment and munitions.

The Iraq Ministry of Interior says it has invested more than $181 million in the Foreign Military Sales Program operated by the U.S. Defense Security Cooperation Agency. The program is designed to provide purchasing power for the Iraqi government to sustain and supply Iraqi security forces with quality weaponry, ammunition and vehicles. Officials say investment in the program is expected to grow to more than $590 million as more contracts are approved.

"Officials in the Iraqi Ministry of Interior are serious about getting the best quality products from the Foreign Military Sales Program," said U.S. Lt. Col. Dan Gilewitch, program manager for the Foreign Military Sales program.

"Both MG Abdulameer (Iraqi assistant deputy ministry for infrastructure) and MG Jassim, (head of the Ministry Of Interior Contracting Directorate) are adamant about receiving timely deliveries of quality Foreign Military Sales equipment so they can issue it to the Provincial Police forces throughout Iraq. They are constantly asking us questions and forcing the issue when it comes to Foreign Military Sales deliveries and pricing."

Foreign Military Sales orders over the past year from the Iraqi Ministry of Interior have included 2,600 police vehicles and thousands of AK-47 rifles and other weapons. Officials say there are currently nine Foreign Military Sales approved cases pending that total $272.4 million supporting border enforcement and police initiatives. Between the Iraqi Ministry of the Interior and Ministry of Defense there are more than $1.3 billion worth of Foreign Military Sales purchases on order.

[upi.com]