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This month, the Pentagon and the Iraqi government are finally closing the books on the program that handled funding for reconstruction in postwar Iraq. But despite years of investigations, US defence officials still cannot say what happened to $US6.6 billion ($6.3 billion) of the cash. Federal auditors are now suggesting that some or all of the cash may have been stolen, not just mislaid in an accounting error. After the US-led invasion in March 2003, the Bush administration flooded Iraq with so much cash that a new unit of measurement was born. Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $US2.4 billion in shrink-wrapped bricks of $US100 bills. They sent an initial full planeload of cash followed by 20 other flights by May 2004 in a $US12 billion haul that US officials believe to be the biggest ever international cash airlift. Stuart Bowen, special inspector-general for Iraq reconstruction, said the missing $US6.6 billion might be ''the largest theft of funds in national history''. Iraqi officials are threatening to go to court to reclaim the money, which came from Iraqi oil sales, seized Iraqi assets and surplus funds from the United Nations' oil-for-food program. Pentagon officials have contended for the past six years that they could account for the money if given enough time to track down the records. But repeated attempts to find the documentation, or better yet the cash, were fruitless.

Note: For key reports from major media sources on government corruption, click here.

The former head of Israel's spy service has launched an unprecedented attack on the country's current government, describing it as "irresponsible and reckless", and has praised Arab attempts to reach an Israeli-Palestinian peace agreement. Meir Dagan stepped down as the head of Mossad six months ago but has gone on the offensive in a series of briefings with journalists and public appearances because he feels that Israel's security is being mismanaged by Binyamin Netanyahu, the prime minister, and Ehud Barak, the defence minister. Upon leaving his post, Dagan publicly warned against Israel attacking Iran to stop it from acquiring nuclear weapons. In his latest comments, he said that if Israel attacks Iran, it will find itself at the centre of a regional war that would endanger the state's existence. Dagan's intervention is dangerous for Netanyahu because it comes from the right wing of Israeli opinion rather than the left, where the prime minister would expect criticism. [Dagan] also criticised Israel's failure to offer any initiative to resolve the conflict with the Palestinians. Dagan also endorsed Saudi Arabia's peace plan which offered Israel normal relations with all Arab countries if it reaches a peace agreement with the Palestinians.

U.S. officials set up a human-intelligence laboratory at Guantánamo that used interrogation and detention practices they largely made up as they went along. The secret summaries, which were obtained via WikiLeaks, help explain why in May 2009 President Obama, after ordering his own review of wartime intelligence, called ... Guantánamo "quite simply a mess." The documents ... show an intelligence operation that was tremendously dependent on informants — both prison-camp snitches repeating what they'd heard from fellow captives, and self-described, at times self-aggrandizing, former al-Qaida insiders turned government witnesses who Pentagon records show have since been released. Intelligence analysts are at odds with each other over which informants to trust, at times drawing inferences from prisoner exercise habits. They ordered DNA tests, tethered Taliban suspects to polygraphs and strung together tidbits in ways that seemed to defy common sense. The documents also show that in the earliest years of the prison camp's operation, the Pentagon permitted Chinese and Russian interrogators into the camps — information from those sessions are included in some captives' assessments — something American defense lawyers working free for the foreign prisoners have alleged and protested for years.

Note: For key reports from reliable sources on the prison at Guantanamo and other black sites where torture and false allegations are the norm, click here.

New rules allow investigators to hold domestic-terror suspects longer than others without giving them a Miranda warning, significantly expanding exceptions to the instructions that have governed the handling of criminal suspects for more than four decades. The move is one of the Obama administration's most significant revisions to rules governing the investigation of terror suspects in the U.S. The new rules give interrogators more latitude and flexibility to define what counts as an appropriate circumstance to waive Miranda rights. The Justice Department believes it has the authority to tinker with Miranda procedures. Making the change administratively rather than through legislation in Congress, however, presents legal risks. Before becoming president, Mr. Obama had criticized the Bush administration for going outside traditional criminal procedures to deal with terror suspects, and for bypassing Congress in making rules to handle detainees after 9/11. He has since embraced many of the same policies while devising additional ones—to the disappointment of civil-liberties groups that championed his election.

Note: For key reports from major media sources on government threats to civil liberties, click here.

The United States continues to spend hundreds of millions of dollars on "good governance" initiatives [in Afghanistan]. This $760 million program, to strengthen government agencies, was America's single largest nonmilitary expense in Afghanistan over the past year. All of it was money thrown away. Last year, the U.S. Agency for International Development began promoting what it calls "Afghanization of aid." Well, in Afghanistan, government leaders have only one use for foreign aid. They stuff the cash into suitcases and fly it to secret bank accounts in Dubai. Afghanistan remains the world's largest grower of opium poppies. It supplies 90 percent of the world's heroin. Many thousands of its citizens are addicts. Earlier this month, the United Nations put out its annual "Afghanistan Opium Survey" and found that, even after the United States has spent more than $2 billion on drug enforcement there, "the total area under cultivation" during 2010 "and the number of families growing opium poppy, remained the same as in 2009" - but for one thing. The U.N. found "an alarming increase of 97 percent" in opium-poppy cultivation among northeastern provinces that are not traditional poppy-growing areas.

Note: For shocking stories by two award-winning journalists suggesting direct involvement by government agencies in the drug trade, click here. And for key reports from reliable sources on government corruption, click here.

A mock city roughly the size of downtown San Diego has risen in a remote Southern California desert to train military forces to fight in urban environments. The $170 million urban training center was unveiled [on January 25] at the Twentynine Palms military base, 170 miles northeast of San Diego. The 1,560-building facility will allow troops to practice and refine skills that can be used around the world, the Marine Corps said. The military has been opening a slew of mock Afghan villages at bases across the country to prepare troops for battle before they are deployed. The new training center is one of the largest and most elaborate. Seven separate mock city districts spread across 274 acres of desert. The facility has almost 1,900 feet of underground tunnels, a manmade riverbed and dozens of courtyards and compounds. More than 15,000 Marines and sailors can train simultaneously in the massive simulator to experience the difficulties they will face during deployments. The new center expanded a similar training program called Mojave Viper that launched in 2005 to prepare troops for the Iraq war. In November, the Marine Corps unveiled a $30 million expansion of its mock Afghan village at Camp Pendleton that nearly quadrupled its size. Similar immersion training facilities are slated to open this year at Marine Corps bases in North Carolina, Hawaii and Okinawa.

Note: With the US national debt spiraling out of control and education and welfare being cut, why is the military spending $170 million on this?

Anwar Al-Awlaki may be the first American on the CIA's kill or capture list, but he was also a lunch guest of military brass at the Pentagon within months of the Sept. 11, 2001, terror attacks. Documents exclusively obtained by Fox News ... state that Awlaki was taken to the Pentagon ... in the immediate aftermath of the attacks. A current Defense Department employee ... came forward and told investigators she helped arrange the meeting after she saw Awlaki speak in Alexandria, Va. The employee "attended this talk and ... she recalls being impressed by this imam. He condemned Al Qaeda and the terrorist attacks," reads one document. "After her vetting, Aulaqi (Awlaki) was invited to and attended a luncheon at the Pentagon in the secretary of the Army's Office of Government Counsel." Awlaki, a Yemeni-American who was born in Las Cruces, N.M., was interviewed at least four times by the FBI in the first week after the attacks because of his ties to the three [alleged] hijackers Nawaf al-Hazmi, Khalid al-Mihdhar and Hani Hanjour. The three ... were all onboard Flight 77 that [allegedly] slammed into the Pentagon.

Note: This article certainly raises suspicions that the amazing connections of Awlaki to so many recent terror incidents may not be unrelated to his now-established connections to the Pentagon shortly after 9/11.

The US Central Intelligence Agency is running and paying for a secret 3,000-strong army of Afghan paramilitaries whose main aim is assassinating Taliban and al-Qa'ida operatives not just in Afghanistan but across the border in neighbouring Pakistan's tribal areas. Although the CIA has long been known to run clandestine militias in Afghanistan, including one from a base it rents from the Afghan president Hamid Karzai's half-brother in the southern province of Kandahar, the sheer number of militiamen directly under its control have never been publicly revealed. [Bob] Woodward's [new] book, Obama's Wars, describes these forces as elite, well-trained units that conduct highly sensitive covert operations into Pakistan as part of a stepped-up campaign against al-Qa'ida and Afghan Taliban havens there. The secret army is split into "Counterterrorism Pursuit Teams", and is thought to be responsible for the deaths of many Pakistani Taliban fighters who have crossed the border into Afghanistan to fight Nato and Afghan government forces there. There are ever-increasing numbers of "kill-or-capture" missions undertaken by US Special Forces against Afghan Taliban and foreign fighters, who hope to drive rank-and-file Taliban towards the Afghan government's peace process by eliminating their leaders.

Note: For commentary on this report of the CIA's army of assassins, click here. For key reports on the realities of the "global war on terror," click here.

A $40 million prison sits in the desert north of Baghdad, empty. A $165 million children's hospital goes unused in the south. A $100 million wastewater treatment system in Fallujah has cost three times more than projected, yet sewage still runs through the streets. As the U.S. draws down in Iraq, it is leaving behind hundreds of abandoned or incomplete projects. More than $5 billion in U.S. taxpayer funds has been wasted on these projects - more than 10 percent of the $53.7 billion the US has spent on reconstruction in Iraq, according to audits from a U.S. watchdog agency. That amount is likely an underestimate, based on an analysis of more than 300 reports by auditors with the special inspector general for Iraq reconstruction. And it does not take into account security costs, which have run almost 17 percent for some projects. Even completed projects for the most part fell far short of original goals, according to an Associated Press review of hundreds of audits and investigations and visits to several sites. The reconstruction program in Iraq has been troubled since its birth shortly after the U.S.-led invasion in 2003. The U.S. was forced to scale back many projects even as they spiked in cost, sometimes to more than double or triple initial projections.

Note: For key reports on the corruption and profiteering that are the real fuels for war, click here.

Israel's Army Radio reported on [July 7] that the United States has sent Israel a secret document committing to nuclear cooperation between the two countries. The U.S. has reportedly pledged to sell Israel materials used to produce electricity, as well as nuclear technology and other supplies, despite the fact that Israel is not a signatory of the Nuclear Non-Proliferation Treaty. Other countries have refused to cooperate with Israel on nuclear matters because it has not signed the NPT, and there has been increasing international pressure for Israel to be more transparent about its nuclear arsenal. Army Radio's diplomatic correspondent said the reported offer could put Israel on a par with India, another NPT holdout which is openly nuclear-armed but in 2008 secured a U.S.-led deal granting it civilian nuclear imports. Israel neither confirms nor denies having nuclear weapons under an "ambiguity" strategy billed as warding off foes while avoiding public provocations that can spark regional arms races. The official reticence, and its toleration in Washington, has long aggrieved many Arabs and Iranians - especially given U.S.-led pressure on Tehran to rein in its nuclear program.

Note: For many key reports on the government secrecy from reliable sources, click here.

A short but growing list of criminal indictments and disciplinary actions stemming from Israel's offensive in the Gaza Strip 18 months ago [supports] the conclusion last year by [a] United Nations-appointed panel that Israel committed war crimes, targeted civilians and used disproportionate force. The facts and findings were dismissed by the government as deeply flawed, and [UN] panel chairman Richard Goldstone, a Jewish jurist from South Africa, was reviled in Israel as a traitor and even anti-Semitic. But the military's own investigations during the last six months have now verified some of the panel's findings. In seven cases disclosed so far, the military found that a sniper "deliberately targeted" civilians; soldiers used Palestinians, including a 9-year-old boy, as human shields; and commanders authorized at least three separate bomb attacks that killed and injured several dozen civilians who were taking refuge in a family home, a U.N. compound and a mosque. "The military is finding out that some of what Goldstone said is true, even though no one wants to admit it," said Gershon Baskin, a political consultant and former Labor Party advisor. "This should indicate that there needs to be deeper investigation."

Note: For many key reports on the horrific realities of the wars in the Middle East and Central Asia, click here.

After five years of investigation, the Justice Department has released its findings regarding the government lawyers who authorized waterboarding and other forms of torture during the interrogation of suspected terrorists at Guantánamo Bay and elsewhere. In contrast, the government doctors and psychologists who participated in and authorized the torture of detainees have escaped discipline, accountability or even internal investigation. It is hardly news that medical staff at the C.I.A. and the Pentagon played a critical role in developing and carrying out torture procedures. Psychologists and at least one doctor designed or recommended coercive interrogation methods including sleep deprivation, stress positions, isolation and waterboarding. The military’s Behavioral Science Consultation Teams evaluated detainees, consulted their medical records to ascertain vulnerabilities and advised interrogators when to push harder for intelligence information. Psychologists designed a program for new arrivals at Guantánamo that kept them in isolation to “enhance and exploit” their “disorientation and disorganization.”

Note: To learn about top doctors and psychiatrists who abused their positions to forward secret government mind control programs, click here.

Private security guards from Blackwater Worldwide participated in some of the C.I.A.’s most sensitive activities — clandestine raids with agency officers against people suspected of being insurgents in Iraq and Afghanistan and the transporting of detainees, according to former company employees and intelligence officials. The raids against suspects occurred on an almost nightly basis during the height of the Iraqi insurgency from 2004 to 2006, with Blackwater personnel playing central roles in what company insiders called “snatch and grab” operations. Several former Blackwater guards said that their involvement in the operations became so routine that the lines supposedly dividing the Central Intelligence Agency, the military and Blackwater became blurred. Instead of simply providing security for C.I.A. officers, they say, Blackwater personnel at times became partners in missions to capture or kill militants in Iraq and Afghanistan, a practice that raises questions about the use of guns for hire on the battlefield. The secret missions illuminate a far deeper relationship between the spy agency and the private security company than government officials had acknowledged. Blackwater’s ties to the C.I.A. have emerged in recent months, beginning with disclosures in The New York Times that the agency had hired the company as part of a program to assassinate leaders of Al Qaeda and to assist in the C.I.A.’s Predator drone program in Afghanistan and Pakistan.

Note: After this report was published, the CIA announced it had terminated contracts with Blackwater. The reality is that many of Blackwater's services are provided under classified contracts, with both the CIA and the Joint Special Operations Command, so the denial of "contracts" with Blackwater may be deceptive.

The United States is massively building up its potential for nuclear and non-nuclear strikes in Latin America and the Caribbean by acquiring unprecedented freedom of action in seven new military, naval and air bases in Colombia. The new US push is part of an effort to counter the loss of influence it has suffered recently at the hands of a new generation of Latin American leaders no longer willing to accept Washington's political and economic tutelage. President Rafael Correa, for instance, has refused to prolong the US armed presence in Ecuador, and US forces have to quit their base at the port of Manta by the end of next month. So Washington turned to Colombia. The country has received military aid worth $4.6bn (Ł2.8bn) from the US since 2000, despite its poor human rights record. Colombian forces regularly kill the country's indigenous people and other civilians, and last year raided the territory of its southern neighbour, Ecuador, causing at least 17 deaths. This being US foreign policy, a tell-tale trail of oil is evident. The fact that the US gets half its oil from Latin America was one of the reasons the US Fourth Fleet was re-established in the region's waters in 2008. The fleet's vessels can include Polaris nuclear-armed submarines – a deployment seen by some experts as a violation of the 1967 Tlatelolco Treaty, which bans nuclear weapons from the continent. With or without nuclear weapons, the bilateral agreement on the seven Colombian bases, signed on 30 October in Bogota, risks a costly new arms race in a region.

Note: American dependence on foreign oil fuels not only US wars in the Middle East and Central Asia but an ever escalating global militarization. For many promising reports from reliable sources on alternatives to oil for many purposes, click here.

[Four] former top executives at Blackwater Worldwide say the U.S. security contractor sent about $1 million to its Iraq office with the intention of paying off officials in the country who were angry about the fatal shootings of 17 civilians by Blackwater employees. Iraqis had long complained about ground operations by the North Carolina-based company, now known as Xe Corp. Then the shooting by Blackwater guards in Baghdad's Nisoor Square in September 2007 left 17 civilians dead, further strained relations between Baghdad and Washington and led U.S. prosecutors to bring charges against the Blackwater contractors involved. The State Department has since turned to DynCorp and another private security firm, Triple Canopy, to handle diplomatic protective services in the country. But Xe continues to provide security for diplomats in other nations, most notably in Afghanistan. The former executives told the [New York Times] that the payments were approved by the company's then-president, Gary Jackson. They did not know if he came up with the idea. Any payments would have been illegal under the U.S. Foreign Corrupt Practices Act, which bans bribes to foreign officials. Two of the former executives said they were directly involved in discussions about paying Iraqi officials, and the other two said they were told about the discussions by others at Blackwater.

Note: For lots more from reliable sources on corporate corruption, click here.

A federal appeals court granted the Obama administration's request ... to rehear a case over a Bay Area company's alleged participation in CIA torture flights, setting the stage for a critical test of government claims of secrecy and national security. The Ninth U.S. Circuit Court of Appeals in San Francisco had reinstated a suit in April by five men who accused the company, Jeppesen Dataplan of San Jose, of taking part in the CIA's extraordinary rendition program that led to their imprisonment and torture. The 3-0 ruling rejected arguments by the Bush and Obama administrations that the case concerned secrets too sensitive to disclose in court. The full appeals court set aside that ruling. President Obama criticized the practice [of extraordinary rendition] but refused to disavow it, promising only that no prisoners would be tortured. Ben Wizner, an ACLU attorney, said ... that he was "disappointed that the Obama administration continues to stand in the way of torture victims having their day in court. This case is not about secrecy. It's about immunity from accountability," Wizner said. In the April ruling reinstating the lawsuit, the three-judge appeals court panel said the government and Jeppesen could take steps to protect national secrets as the case proceeded. The panel said the administration's argument, if accepted, would "cordon off all secret government actions from judicial scrutiny, immunizing the CIA and its contractors from the demands and limits of the law."

Note: For many reports from major media sources of growing government threats to civil liberties, click here.

The United States has long suspected that [many] of the billions of dollars it has sent Pakistan to battle militants has been diverted to the domestic economy and other causes, such as fighting India. Now the scope and longevity of the misuse is becoming clear: Between 2002 and 2008 ... only $500 million of the $6.6 billion in American aid actually made it to the Pakistani military, two army generals said. At the time of the siphoning, Pervez Musharraf, a Washington ally, served as chief of staff and president, making it easier to divert money intended for the military to bolster his image at home through economic subsidies. "The army itself got very little,'' said Mahmud Durrani, a retired general who was Pakistan's ambassador to the United States under Musharraf. "It went to things like subsidies, which is why everything looked hunky-dory." Generals and ministers say the diversion of the money hurt the military in several ways. Helicopters critical to the battle in rugged border regions were not available. At one point in 2007, more than 200 soldiers were trapped by insurgents in the tribal regions without a helicopter lift to rescue them. Equipment was broken, and training was lacking. The details on misuse of American aid come as Washington again promises Pakistan money. Legislation to triple general aid to Pakistan cleared Congress last week. "We don't have a mechanism for tracking the money after we have given it to them,'' said Lieutenant Colonel Mark Wright, a Pentagon spokesman.

Note: For lots more on government corruption from reliable sources, click here.

Security contractors at the giant US Embassy in Kabul were accused yesterday of fostering a “Lord of the Flies environment” built on abuse and humiliating initiation rituals. The allegations, made by the independent Project On Government Oversight, are contained in a report submitted to Hillary Clinton, the US Secretary of State. The report is based on e-mails, some of which describe the alleged abuse of Afghan nationals. Among those implicated are Britons employed by ArmorGroup North America, the contractor providing security at the embassy, where nearly 1,000 diplomats and support staff work. The report quotes an e-mail from a guard currently working for the contractor, describing scenes of guards and supervisors “peeing on people, eating potato chips out of [buttock] cracks” and drinking “vodka shots out of [buttock] cracks”. In another incident, a male Afghan caterer complained last month of being grabbed by a supervisor and told: “You are very good for f***ing.” The supervisor, who was in only his underwear, also brandished bottles of alcohol. The allegations at the Kabul embassy come in the wake of scandals surrounding Blackwater, another security contractor, in Afghanistan and Iraq, where it has been accused of fraud, abuse and involvement in civilian deaths.

Note: For lots more on the illegal activities of military contractors in Afghanistan and Iraq, click here.

Paranoid, competitive and fuelled by guns, alcohol and steroids. That is how one senior contractor in Baghdad describes the private security industry operating in the city's Green Zone. It was the world to which Danny Fitzsimons, a 29-year-old former soldier suffering from post-traumatic stress disorder and paranoia, and with an extensive criminal past, returned three weeks ago. Despite rules against alcohol, his ArmorGroup colleagues welcomed him with a drinking session. A fight broke out and he shot and killed two of them – a Briton, Paul McGuigan, and an Australian, Darren Hoare – then wounded an Iraqi, Arkhan Mahdi. He faces a premeditated murder charge and execution if found guilty. Mr Fitzsimons's family is determined to save him and say he was suffering from severe psychiatric problems after a brutal career in the Army and in the security industry. But those on the ground hold little hope. They are already resigned to Mr Fitzsimons's execution and say that he is a tiny pawn in a huge, expensive and vicious game of chess. They say the private security business in Iraq is in a vice-like crush. The gold rush that began with the conflict in 2003 is drying up. Contracts are not as lucrative, the trend is towards employing Iraqis instead of Westerners and, crucially, the Iraqi authorities ... are clamping down. "We are loathed out here. We are the single most hated entity in Iraq," said Ethan Madison, a security contractor who has worked in Baghdad for five years.

Note: For lots more on the illegal activities of US military contractors in Iraq and Afghanistan, click here.

When the CIA revived a plan to kill or capture [alleged] terrorists in 2004, the agency turned to the well-connected security company then known as Blackwater USA. With Blackwater's lucrative government security work and contacts arrayed in hot spots around the world, company officials offered the services of foreigners supposedly skilled at tracking [people] in lawless regions and countries where the CIA had no working relationships with the government. But the CIA's use of the private contractor as part of its now-abandoned plan to dispatch death squads skirted concerns now re-emerging with recent disclosures about Blackwater's role. Blackwater's later hiring of several senior CIA officials who were involved in or aware of the secret program, including one of the men who ran the operation, showed the blurred lines of using a private contractor for such a highly classified and dangerous project. The 2004 decision by CIA officials to entrust the North Carolina-based company with such a sensitive overseas operation struck some former agency officials as highly unusual. "The question remains: Why do we need Blackwater?" said Charles Faddis, a former department chief at the CIA's Counterterrorism Center who retired in 2008 and was not involved in the secret program. "I remain mystified. This is quintessential CIA work. You wonder what it means that the CIA has to rely on Blackwater? Why are we still funding the CIA?" The former senior CIA official who had knowledge of the program explained that "you wouldn't want to have American fingerprints on it."

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