CIA in Dutch Espionage Gaffe

Dutch newspaper "De Telegraaf" reported last week that the CIA has carried out covert operations in the country, resulting in a diplomatic tiff in which the CIA station chief has been sent packing. The conflict was kept carefully under-wraps. "Well informed sources" in The Hague say the discredited CIA station chief left the Netherlands in 2005.

Central to the covert operations was an investigation into the proliferation of nuclear technology to Pakistan. According to sources this led to a bizarre situation during a secret operation at the house of a businessman. At some point Dutch intelligence agents became aware of CIA spooks also entering the premises, and caught them on tape.

Since the departure of the CIA officer relations have markedly improved. The new American station chief is said to be more diplomatically correct than his predecessor.

- Caption: Hat Tip "The Atlantic" -

Underlying this innocent sounding anecdote is a much more sinister espionage story, which might have wider ramifications in the future.

In August 2005 former Dutch Prime Minister Ruud Lubbers confirmed that the Government at the time knew Pakistini nuclear scientist A.Q. Khan was stealing secret nuclear technology from the Physical Dynamics Research Laboratory (FDO) in Amsterdam where Khan worked from 1972 to 1976.

FDO was a URENCO subcontractor, the uranium enrichment facility which had been established by the U.K., West Germany and the Netherlands to produce enriched uranium for European reactors.

Lubbers went on record, affirming - upon the CIA's wishes, in order to monitor Khan's movements - to have let Khan proceed with his clandestine activities on at least two separate occasions.

In January 2004 Khan confessed to having been involved in a clandestine international mail order network of nuclear weapons technology from Pakistan to Libya, Iran and North Korea.

Khan, being somewhat of a national hero, was pardoned by President Musharraf after having served a period under house-arrest. The Pakistan President later confirmed Khan had supplied uranium hexafluoride, gas centrifuges and parts to North Korea.

Evidently this lethal spat hasn't got the tendency of becoming very fast a blast from the past.

Cash-for-Kim: Confidential UN Report Published

Elsevier: "Melkert's UNDP violated UN rules in North Korea," by Robbert de Witt (free translation)

Rotterdam newspaper NRC reports today on an as yet confidential UN report on violations in respect of relief efforts in North Korea. UN Development Program (UNDP), where former Dutch Labour leader Ad Melkert is second in command, violated internal UN regulations in providing aid to the North Koreans.

'Donor countries are justified in their concern for lack of transparency, accountability and proper use of their funds," concludes the 353-page report. The Netherlands is contributing well over 73 million Euros per year and is the largest UNDP donor.

Abuses
The investigation is meant to put an end to persistent stories about UNDP abuses; Melkert's responsibility at the UNDP is the implementation of policies.

According to the UN report UNDP staff are beyond reproach, but rules should have been better respected. Because of the "difficult situation" in North Korea it was sometimes unclear where expenditures went.

The allegations expressed by whistle-blower Shkurtaj "aren't considered entirely credible." Tonight during a press conference in New York Melkert will comment on the report's findings.

The 'cash-for-Kim' scandal
Artjon Shkurtaj, who led the UNDP mission in North Korea, said last year that millions of Euros in aid ended up with the North Korean regime, without the UNDP knowing how the money was spent.

Scandal
Melkert was harshly criticized for his role in the scandal: the former Dutch Labour leader allegedly did nothing to ensure relief money didn't disappear into the pockets of the North Korean dictator, Kim Jung Il.

Melkert has consistently rejected the allegations. (...) >>>

He last surfaced when grinding Paul Wolfowitz to gerbil mix at the World Bank. Here's what we reported on 19th April 2007 in "Of Rats and Inner Voices, Mainly":

"Dutch former Socialist Party leader and former World Bank Chairman of the Board’s Ethics Committee during mid-2005, who requested Paul Wolfowitz to act as he did, presently denies all knowledge. Those familiar with the Ad Melkert modus operandi, shouldn't be terribly surprised. Didn't I explain that's the sort of institutions where Socialists go to die after messing things up too much, even for Dutch hyper tolerant standards?

Deputy says 'quit', Here's the link to all 357 articles. Well, the whole Wolfowitz affair stands to reason ... he's a neocon, isn't he? As it's open season ..."

Keeping you posted on Melkert, the UN and 'cash-for-Kim.'

Updated:

This story seems DOA and it has disappeared from the media's radar screens ... only WaPo has it all, the obfuscation/moral inversion (?): "Report on U.N. Program Assails Whistle-Blower" >>>

- Filed on Articles in "Transnational Bankruptcy" -