Feral Jundi

Monday, September 6, 2010

Afghanistan: Taliban Paid Bounties For Kills, Thanks To Iran And Others

The money is said to come from protection rackets, taxes imposed on opium farmers, donors in the Gulf states who channel money through Dubai and from the senior Taliban leadership in Pakistan. 

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The Iranian companies win contracts to supply materials and logistics to Afghans involved in reconstruction. The money often comes in the form of aid from foreign donors.

The profits are transferred through poorly regulated Afghan banks – including the Kabul Bank, which is partly owned by President Hamid Karzai’s brother, Mahmood – to Tehran and Dubai.

From these countries, the money returns to Afghanistan through the informal Islamic banking system known as hawala to be dispersed to the Taliban fighters.

“This means the companies involved in funding the insurgency can cover their tracks easily. It makes it harder for us to trace the cashflow,” a senior Afghan intelligence officer said.

He said the Iranian companies had been formed with the intention of winning contracts funded by foreign aid so the donors’ cash could be channelled into the insurgency. 

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    In the past I have talked about this market of force concept in which the enemy is able to attract combatants that are contracted for the killing of our troops.  The Taliban pay better and they offer incentives that give the possibility of even more pay. The incentive here is bounties, and the money comes from foreign donor sources or from drug sales and extortion rackets.  In other words, the enemy is creating an industry that profits off the death of our troops. A system of bounties also attracts those that are the most proficient or creative in their abilities to kill, both local and foreign.

    Below I posted three stories that all highlight exactly how this Taliban market of force works.  From assigning values to equipment being destroyed, to individuals being killed. I am also speculating that these foreign mercenary sniper teams were not only contracted, but also allowed to receive bounties for each kill.  It would make sense, just because they too would be rewarded for their deadly skills and inclined to stay in the fight to rack up kills.

    Also, other Taliban fighters will be drawn to the most target rich areas of the country with the greatest chance of getting away with their kills. They will also go for the easiest kills possible, which would be either IED’s or sniping. In those cases, they need witnesses or video via cellphone camera, etc. to confirm the kill and get payment.

     If they attacked in force in some kind of coordinated effort, I am sure the entire unit would be rewarded and they would split the prize. In that case, those fighters interested in more profit would probably be interested in joining the best teams with the highest kill ratios. Much like how the best privateer companies attracted investors during the American Revolutionary War, or how the best pirate companies in Somalia attract wannabe pirates seeking a chance to get wealthy.

    The other thing that is attractive about a system of bounties is that a Taliban commander can use their averages as a means of recruitment.  He can tell potential recruits that he pays $245 a month, but his guys also have the highest bounty collections rate in the area. Everyone loves to join a winning team in this high dollar hunting game.

     I wonder though how suicide bombers are viewed in this game? I am sure if they were part of the attack, then I would assume the Taliban commander and his team would collect some payment for the deaths that these human bombs created? With that said, I am sure there is some form of a prize court that these guys go through in order to work these issues out. –Matt

Taliban paid bounties for kills

Four mercenary snipers hired by the Taliban are zapped from the air by British soldiers in Afghanistan

Taliban win £1,600 bounty for each Nato soldier killed

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Taliban paid bounties for kills

Miles Amoore

September 06, 2010

IRANIAN companies in Kabul are using their offices to covertly finance Taliban fighters in Afghanistan.

They are paying bounties of $US1000 ($1090) for killing a US soldier and $US6000 for destroying a military vehicle, a treasurer for the insurgents says.

Afghan intelligence and Taliban sources said at least five front companies, set up in the past six months, provide cash for a network of district Taliban treasurers to pay battlefield expenses and bonuses for killing foreign troops and destroying their vehicles.

The Iranian companies win contracts to supply materials and logistics to Afghans involved in reconstruction. The money often comes in the form of aid from foreign donors.

The profits are transferred through poorly regulated Afghan banks – including the Kabul Bank, which is partly owned by President Hamid Karzai’s brother, Mahmood – to Tehran and Dubai.

From these countries, the money returns to Afghanistan through the informal Islamic banking system known as hawala to be dispersed to the Taliban fighters.

“This means the companies involved in funding the insurgency can cover their tracks easily. It makes it harder for us to trace the cashflow,” a senior Afghan intelligence officer said.

He said the Iranian companies had been formed with the intention of winning contracts funded by foreign aid so the donors’ cash could be channelled into the insurgency.

Western officials believe the network may have been set up by the al-Quds force, an elite branch of Iran’s elite Revolutionary Guard.

(more…)

Sunday, September 5, 2010

PMC 2.0: Paying Your Local Guard Force With ‘Mobile Cash’

     This is an excellent article that discusses a very unique solution to a problem that we are dealing with in the war zones and other places throughout the world.  When companies subcontract with local guard companies for security, you often hear about how the managers screw over their guard force by skimming off the top of their pay.  They do all sorts crappy things to their people, and it can do a lot of damage to the morale of the guard force.

     The idea of mobile cash is about how the customer that pays for this guard service, can ensure that their contracted guard force is getting paid on time and in full via cell phone/text messaging.(read the article below for details) This is especially pertinent in war zones where telecom might be up and running, but not much else. Africa, Afghanistan and Iraq all have thriving telecom markets, and everyone has cell phones, and this is one more way to tap into this technology for the good of the company and mission.

     In order to maintain the edge in this market of force, and not lose folks to the enemy or a competitor, you need to make sure every last penny you are spending on these guard contracts is accounted for.  It also makes it very hard for your subcontracted field managers to take from the guards, which will also help in your market of force optimization. Anything you can do to minimize the potential for corruptive activities is a good thing.

     Now on to some ideas with this ‘mobile cash’ concept that the authors could have expanded on.  I have talked before about COIN and SMS, and this kind of cell phone payment system will make it easier to crowd source and spread messages. Some of the ideas I was thinking of is to offer bounties through the same system for any individuals that can locate wanted enemies or provide information. You could also provide bonuses to guards that participate in surveys.  How about an english learning program, which would make it a game for guards to learn english?  There are a ton of things you could ask the guards to do in order to get ‘feedback gold’ before they could collect their paycheck. I guess the point is, is just offering payment through this convenient service will be reward enough for anything you need them to do.

     The other thing that you could do with this concept for government related services, is to constantly ask police, military, and government folks to identify issues that need to be addressed within their organizations–before they collect their paycheck via phone. You don’t want to piss them off by making them go through too many hoops, but you could definitely tap into all of these ‘human sensors’ throughout the organizations, and get a feel for what is going on and collect data.

     I really like the commerce angle on this.  If this mobile cash concept makes transactions more transparent with better record keeping, then that will make banks more accountable. Especially when you have dorks like Karzai’s family in charge of the Kabul Bank, and because they keep playing games and writing checks to all their friends, that now you have a bank in trouble. (and I will pull my hair out if the US bails out this bank…pfffft) Hell, if there was a way to bypass corrupt local banks and maybe use international banks or even try a telecom bank type system?  Who knows, but either way the cell phone transaction will only add more record keeping to the whole thing.

     Now for the future.  I believe in several years, the smart phone market will catch up in these war zones.  People might joke, but locals in the cities will purchase these things because they are status symbols. The car, motorcycle, satellite dish, cellphone, and the soon to become a hit ‘smart phone’ are all status symbols that locals in these countries want to have. These devices will also be within their reach just because there will be such a large supply of them throughout the world.  The telecom industries in these countries will also do their best to keep up with this latest trend.  That is just my thoughts on the future of this stuff.

     Now imagine a local Afghan businessman with basically a computer in his pocket?  The apps, the online payment systems of international banks, the social networking, all of it, will be available to these folks in developing countries. It will be wise for us to take advantage of this new reality, and develop strategic communications plan that utilizes these devices as a means to reach out. Good article and a big hat tip to the guys at Small Wars Journal for putting it out there. –Matt

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One Cell Phone at a Time: Countering Corruption in Afghanistan

by Dan Rice and Guy Filippelli

September 2, 2010

Download the full article: One Cell Phone at a Time

American commanders are preparing for a major offensive in Afghanistan to attack one of the most formidable enemies we face in country: corruption. Despite sincere efforts to promote governance and accountability initiatives, Afghanistan has slipped from 112th to158th place on Transparency International’s global corruption index. One reason the international community has been unable to effectively tackle corruption in Afghanistan is that our own reconstruction efforts perpetuate the problem. As Secretary of State Hillary Rodham Clinton recently acknowledged, “Corruption, frankly… is not all an Afghan problem.” Money appropriated to secure and stabilize the country is too easily siphoned and redirected as it changes hands, inevitably making its way to local powerbrokers, insurgent networks, and offshore bank accounts, rather than the individuals who need it most. One solution to this problem lies in the palm of our hands: the mighty cell phone.

(more…)

Thursday, December 17, 2009

Somalia: A Pirate’s Life Is Good In Somalia

Filed under: Somalia — Tags: , , , , , — Matt @ 10:33 AM

   Amazing.  If you read this, it matches exactly how the US privateers impacted the local colonies back in our early history.  The question I have, is what direction will this go?  Will Al Shabaab demand a cut or participate in these ventures to make money for jihad?  If the local religious leaders keep scorning the capitalist activities of these newly rich pirates, then maybe religious extremists will attach the whole piracy thing to jihad, in order to keep the activity going strong and take advantage of the skills of these guys?

    It is an excellent money maker, and if Al Qaeda is not doing too well in the donations department, then I could see them going down this path.  I could also see them going down the drug smuggling path, just as long as they can somehow tie it into jihad. If they can justify suicide bombers and killing innocents in jihad, they can justify privateering and drug smuggling.

   Despite the direction it goes, these guys will continue to get more loot.  They have a taste of that good life, and they will not let go of that anytime soon. Piracy is king in Somalia, and all the kids are doing it.

    I say break out the LoM and lets make a pirate’s life miserable and poor. Turn the eradication of pirates, into a full blown industry and take back the high seas. –Matt

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A pirate’s life is good in Somalia

Thursday, December 17, 2009

Mohamed Olad Hassan

BOSSASO, Somalia

A parcel of land here that sold for $12,000 two years ago now costs more than $20,000. The price of a nice pair of men’s shoes has gone up from $20 to $50. The reason: pirates. The influx of millions of dollars in ransoms has changed life in this coastal Muslim community, driving prices up and creating a schism between the pirate haves and have-nots. As piracy ramps up again with the end of the monsoon season, the lifestyle of the pirates – big houses, fast cars and easy drugs – is decried by both religious leaders and ordinary villagers.

“The use of drugs such as cannabis and the drinking of alcohol, sex and other obnoxious misconduct are now becoming common within the pirates, causing social problems,” said Sheik Ahmed, a mosque leader in the town of Galkayo. “That is what is worrying us, a lot more than the risk they pose to the foreign ships and crew.”

(more…)

Monday, March 31, 2008

Industry Talk: Just How Overpaid are We?

Filed under: Industry Talk,Publications — Tags: , , , , — Matt @ 1:39 PM

First off, I wanted to give a big thumbs up to a really cool magazine called Serviam.  I highly suggest getting a subscription, or just reading through the website every once in awhile.  The articles are great stuff to chew on, for the industry.  

As far as this discussion goes, I think it is important to talk about our value as a whole, and what we are really worth out there.  And because this industry has evolved so quickly, your ammunition for evaluating contracts and future employment, starts with a basic knowledge of what you are worth.   Cheers and happy job hunting out there. -Head Jundi

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Just How Overpaid are Private Security Contractors?

By Ann Jocelyn

A base pay of $165,000 per year is a lot of money for most people, especially to a soldier. It’s no wonder that some military professionals aspire to become highly paid private security contractors (PSCs), and that others will simply resent them for earning these high wages.

Compared with the basic pay of an active duty E-6 staff sergeant with 10 years of service, the cash compensation of a top-end PSC is a small fortune. Some critics are outraged that a high-end contractor is paid nearly five times as much as that of an E-6. The contracting system, they say, is unfair to the troops and is a rip-off of the taxpayer. For every one contractor, the reasoning goes, the U.S. could pay for five staff sergeants.

That might make sense if the compensation systems were similar. But they aren’t. Serviam spoke with some of the highest-paid PSCs in Iraq to learn exactly what they earn in salary and benefits, and what they return to the government in taxes. We then looked at official U.S. military compensation charts. When comparing net cash and noncash compensation, we found that the E-6 sergeant can take home more pay and benefits than the security contractor. (more…)

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