Ankara, Baghdad and Riyadh ask: Are US air strikes working?

October 11, 2014

Oct 11: The ISIS, plaguing many countries in West Asia, made a symbolic assertion during Haj too. At the ritual stoning of the devil at Mina, five kilometres to the East of Mecca, fluttered a black banner of the Islamic State (IS). The police said nothing.

US Air Strike
Recently, The Independent in London published an article giving a clue to ordinary Saudi reaction to IS. Patrick Cockburn, the writer, has cited a study done by Fouad Khadem of the Centre of Academic Shia Studies in London.

Public discussions on sensitive issues are not permitted in Saudi Arabia. Tweeting therefore has become a common vehicle to sustain debates.

The messages Saudis have been sharing on the Islamic State are fascinating.

When IS swept through northern Iraq and eastern Syria, Mania bin Nasir al-Mani was pleased. "The great land of Allah belongs neither to Kings nor nations. Those who deserve the Caliphate are those who implement the Sharia of Allah on earth and on people. Apostates and traitors deserve nothing but the sword." Later, al Mani joined the IS in Syria.

One Azfar Minfard declared: "No need for IS to enter - our country is full of them (IS)." Fata al Arab was more emphatic: "IS is on the Saudi borders, and its supporters inside Saudi Arabia are more than its organized members and armed fighters."

A revealing tweet came from Adil al-Kalbany, a Wahabi Shaikh, who has for years led prayers as an Imam of the Holy Shrine in Mecca. "IS is a Salafi (fundamentalist) offshoot - a reality we should confront with transparency."

As soon as President Barack Obama announced the coalition of the willing to wage war against IS, Saudi Arabia, Bahrain, Kuwait, Qatar, the UAE and Jordan instantly signed up. The next country had to seek permission from parliament before it joined - Great Britain, but only to bomb IS in Iraq. Strange, isn't it?

The tardiness with which the coalition of willing nations is being erected contrasts sharply with the speed with which non-state actors have come together as ISIS - a hodge-podge of Islamists, ex-Baathists

turned-deeply religious in their marginalized distress, Naqshbandi Sufis, Muslim Brothers, Salafists, Al Qaeda, Jabat al Nusra, everyone without exception opposed to Islamic monarchies.

One would have thought that Morocco is not prominent in the coalition of the willing because Rabat considers itself remote from the IS theatre. The monarchy woke up with a start the other morning when its security forces, in a coordinated action with Spain, busted an IS recruitment cell.

While the cumulative power of all the elements in the IS are focussed on monarchies, principally Saudi Arabia, elements in the IS have independent scores to settle with regimes in Baghdad, Ankara and sub-groups fighting the central authority in these states.

The IS, which mutated from the civil war in Syria, first identified groups seething with local anger. The famous occupation of Mosul, which boosted the prestige of the IS as a formidable force, would not have been possible without painstaking groundwork.

Abu Bakr al Baghdadi was able to find an ally at the highest echelons of the Nineveh province. Mosul is its capital. The Governor, Atheel Nujaifi, handed over the keys of Mosul to al Baghdadi, an act of splendid treachery. He arranged for a most orderly takeover of Mosul by the Caliphate.

Nujaifi had longstanding grievances. He had for years been trying to carve out Mosul as a Sunni dominated city surrounded by Kurds including 350,000 of a minority tribe called the Yazidis.

Mosul and Erbil happen to be just a little north of the 36th parallel beyond which Western Forces had established a security zone after the first Gulf war to encourage Kurdish refugees to return to Iraq.

This exactly is what Nujaifi was seething with rage about. He handed over the battle to the IS. This one move created turbulence in the Kurdish north of Iraq which the Americans had tranquilized with a No Fly Zone during Saddam's rule.

The alacrity with which Obama announced air strikes against the IS was to protect assets in Kurdish Iraq where Israelis, Turks and Americans have been doing reasonable business in recent decades. The swiftness with which the Gulf Sheikhs lined up dictated the next American priority.

Saudi Arabia had to be protected. Without a strong Saudi Arabia in the region, Israel would be a lonesome presence. That is why the US is talking of "decades" long presence in the region. Whatever else the IS may do they must not lurch towards Saudi Arabia. The US will stand at the gate like supreme bouncers. But an extended US stay will create the inevitable political backlash - exponential anti-Americanism.

Shias from Mosul clambered on to their cars and trucks and drove 450 km to Karbala and Najaf. Between these two pilgrim centres, the 120-km route is lined by big halls as halting stations for pilgrims. These are tearing at the seams with Shia refugees who do not know where to turn for help since there is very little government on view in Baghdad. The "all inclusive" government of Haider al Abadi is, on the face of it, not governing.

Meanwhile, Prime Minister Tayyip Erdogan of Turkey is scripting his own tragedy of indecision, rather like the Prince of Denmark. Everyone in the region, without exception, is keeping one's fingers crossed.

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News Network
April 11,2024

vietnamfraud.jpg

Real estate tycoon Truong My Lan was sentenced Thursday to death by a court in Ho Chi Minh city in southern Vietnam in the country's largest financial fraud case ever, state media Thanh Nien said.

It's a rare verdict - she is one of very few women in Vietnam to be sentenced to death for a white collar crime, i.e. looting one of the country's largest banks over a period of 11 years.

The decision is a reflection of the dizzying scale of the fraud. Truong My Lan was convicted of taking out $44bn (£35bn) in loans from the Saigon Commercial Bank. The verdict requires her to return $27bn, a sum prosecutors said may never be recovered. Some believe the death penalty is the court's way of trying to encourage her to return some of the missing billions.

The habitually secretive communist authorities were uncharacteristically forthright about this case, going into minute detail for the media. They said 2,700 people were summoned to testify, while 10 state prosecutors and around 200 lawyers were involved.

The evidence was in 104 boxes weighing a total of six tonnes. Eighty-five defendants were tried with Truong My Lan, who denied the charges.

"There has never been a show trial like this, I think, in the communist era," says David Brown, a retired US state department official with long experience in Vietnam. "There has certainly been nothing on this scale."

The trial was the most dramatic chapter so far in the "Blazing Furnaces" anti-corruption campaign led by the Communist Party Secretary-General, Nguyen Phu Trong.

A conservative ideologue steeped in Marxist theory, Nguyen Phu Trong believes that popular anger over untamed corruption poses an existential threat to the Communist Party's monopoly on power. He began the campaign in earnest in 2016 after out-manoeuvring the then pro-business prime minister to retain the top job in the party.

 The campaign has seen two presidents and two deputy prime ministers forced to resign, and hundreds of officials disciplined or jailed. Now one of the country's richest women has joined their ranks.

Truong My Lan comes from a Sino-Vietnamese family in Ho Chi Minh City, formerly Saigon. It has long been the commercial engine of the Vietnamese economy, dating well back to its days as the anti-communist capital of South Vietnam, with a large, ethnic Chinese community.

She started as a market stall vendor, selling cosmetics with her mother, but began buying land and property after the Communist Party ushered in a period of economic reform, known as Doi Moi, in 1986. By the 1990s, she owned a large portfolio of hotels and restaurants.

Although Vietnam is best known outside the country for its fast-growing manufacturing sector, as an alternative supply chain to China, most wealthy Vietnamese made their money developing and speculating in property.

All land is officially state-owned. Getting access to it often relies on personal relationships with state officials. Corruption escalated as the economy grew, and became endemic.

By 2011, Truong My Lan was a well-known business figure in Ho Chi Minh City, and she was allowed to arrange the merger of three smaller, cash-strapped banks into a larger entity: Saigon Commercial Bank.

Vietnamese law prohibits any individual from holding more than 5% of the shares in any bank. But prosecutors say that through hundreds of shell companies and people acting as her proxies, Truong My Lan actually owned more than 90% of Saigon Commercial.

They accused her of using that power to appoint her own people as managers, and then ordering them to approve hundreds of loans to the network of shell companies she controlled.

The amounts taken out are staggering. Her loans made up 93% of all the bank's lending.

According to prosecutors, over a period of three years from February 2019, she ordered her driver to withdraw 108 trillion Vietnamese dong, more than $4bn (£2.3bn) in cash from the bank, and store it in her basement.

That much cash, even if all of it was in Vietnam's largest denomination banknotes, would weigh two tonnes.

She was also accused of bribing generously to ensure her loans were never scrutinised. One of those who was tried used to be a chief inspector at the central bank, who was accused of accepting a $5m bribe.

The mass of officially sanctioned publicity about the case channelled public anger over corruption against Truong My Lan, whose fatigued, unmade-up appearance in court was in stark contrast to the glamorous publicity photos people had seen of her in the past.

But questions are also being asked about why she was able to keep on with the alleged fraud for so long.

"I am puzzled," says Le Hong Hiep who runs the Vietnam Studies Programme at the ISEAS - Yusof Ishak Institute in Singapore.

"Because it wasn't a secret. It was well known in the market that Truong My Lan and her Van Thinh Phat group were using SCB as their own piggy bank to fund the mass acquisition of real estate in the most prime locations.

"It was obvious that she had to get the money from somewhere. But then it is such a common practice. SCB is not the only bank that is used like this. So perhaps the government lost sight because there are so many similar cases in the market."

David Brown believes she was protected by powerful figures who have dominated business and politics in Ho Chi Minh City for decades. And he sees a bigger factor in play in the way this trial is being run: a bid to reassert the authority of the Communist Party over the free-wheeling business culture of the south.

"What Nguyen Phu Trong and his allies in the party are trying to do is to regain control of Saigon, or at least stop it from slipping away.

"Up until 2016 the party in Hanoi pretty much let this Sino-Vietnamese mafia run the place. They would make all the right noises that local communist leaders are supposed to make, but at the same time they were milking the city for a substantial cut of the money that was being made down there."

At 79 years old, party chief Nguyen Phu Trong is in shaky health, and will almost certainly have to retire at the next Communist Party Congress in 2026, when new leaders will be chosen.

He has been one of the longest-serving and most consequential secretary-generals, restoring the authority of the party's conservative wing to a level not seen since the reforms of the 1980s. He clearly does not want to risk permitting enough openness to undermine the party's hold on political power.

But he is trapped in a contradiction. Under his leadership the party has set an ambitious goal of reaching rich country status by 2045, with a technology and knowledge-based economy. This is what is driving the ever-closer partnership with the United States.

Yet faster growth in Vietnam almost inevitably means more corruption. Fight corruption too much, and you risk extinguishing a lot of economic activity. Already there are complaints that bureaucracy has slowed down, as officials shy away from decisions which might implicate them in a corruption case.

"That's the paradox," says Le Hong Hiep. "Their growth model has been reliant on corrupt practices for so long. Corruption has been the grease that that kept the machinery working. If they stop the grease, things may not work any more."

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