Feral Jundi

Wednesday, December 22, 2010

Iraq: Oil News–Local Security Firms Running A ‘Mafia’ To Artificially Inflate Prices

     This is a great little article that gives a snap shot of the current oil security business in Iraq. It also mentions the Chinese security teams operating there and some of the issues they have faced. For a quick primer on this, I posted some stuff about China’s plans in Iraq.

     Basra is also really bad for this kind of thing. It is to be expected that these Iraqi companies would try to inflate prices and jerk around the oil companies.  Haliburton and others should not be surprised that these local companies would be like this. –Matt

WikiLeaks cables: Iraq security firms operate ‘mafia’ to inflate prices

Halliburton executive’s comments reveal tensions between security firms, oil companies and the Baghdad government

By Rajeev Syal

Tuesday 21 December 2010

Halliburton’s senior executive in Iraq accused private security companies of operating a “mafia” to artifically inflate their “outrageous prices”, according to a US cable.

Written by a senior diplomat in the US’s Basra office, the confidential document discloses the tensions between private security firms, oil companies and the Iraqi government as coalition forces withdraw from protecting foreign business interests.

John Naland, head of the provincial reconstruction team in Basra, wrote in January this year that several oil company representatives complained of “unwarranted high prices” given an improving security situation since 2008.

“Halliburton Iraq country manager decried a ‘mafia’ of these companies and their ‘outrageous’ prices, and said that they also exaggerate the security threat.

“Apart from the high costs for routine trips, he claimed that Halliburton often receives what he says are ‘questionable’ reports of vulnerability of employees to kidnapping and ransom. He said that he recently saw an internal memo from their security company which tasked its employees to emphasize the persistent danger faced by IOCs [international oil companies].” Naland wrote.

(more…)

Monday, November 29, 2010

Technology: China Used Cyber Privateers In Attack Against Google

     The hack was part of a computer sabotage campaign carried out by government operatives, private security experts and Internet outlaws recruited by the Chinese government. This has been going on since at least 2002, the cable said.

     I read this and the first thing that popped out at me was that China was contracting with private industry to attack an enemy in cyber space (the commons).  In this case, that enemy was Google.

     Also, just look at the list of folks they contracted with, and you wonder how is this not cyber privateering?  Perhaps the Chinese understand the concept of ‘creating an industry out of destroying your enemies’, much better than the west. It is also the Chinese who are doing this, and not some poor third world country.

     So this is the next thought that came to mind.  If China is doing this, then why couldn’t the US use the same tool of cyber warfare against the Chinese, or even against a group like Wikileaks?  Hell, we can even be open about it and issue Letters of Marque and Reprisal to individuals and companies in order to make this happen. Just a thought, and hey, China is doing it. lol –Matt

Chinese Government Ordered Hack on Google Servers: Wikileaks

By Clint Boulton2010-11-29

Wikileaks gave the New York Times a diplomatic cable that shows the Chinese government was responsible for the hack on Google’s Gmail system.

China’s government was indeed behind the hack on Google’s Gmail system earlier this year according to a cable captured by the controversial Wikileaks organization.

Wikileaks, which butters its bread collecting secret documents and seeding them in media outlets, snagged 250,000 American diplomatic cables dating back three years and released some of them to the New York Times and other media outlets.

The Times cited one of the cables as proof that “China’s Politburo directed the intrusion into Google’s computer systems in that country, a Chinese contact told the American Embassy in Beijing in January.”

The hack was part of a computer sabotage campaign carried out by government operatives, private security experts and Internet outlaws recruited by the Chinese government. This has been going on since at least 2002, the cable said.

A Google spokesperson told eWEEK: “We aren’t going to be able to comment. As you know, since we revealed this incident in January, we haven’t been speculating as to the parties responsible.”

(more…)

Wednesday, September 22, 2010

Executive Protection: The Explosive Growth Of The Close Protection Industry In China

When Zhe, a national-level kung fu coach and former government security agent, started his company eight years ago, aiming to serve a high-end, wealthy clientele, he recalls there were few if any competitors in the game. By the end of last year, according to the Ministry of Public Security, the private security business had grown into a $1.2 billion industry with about 2,767 companies employing more than two million security guards. 

*****

    Wow, I had no idea it was this big?  And what is really interesting about this, is how this will translate into China’s presence throughout the world?  If the rich in China are reaching out to the close protection industry, then I would imagine that some of this relationship would spill overseas into some of the places overseas.  Especially in the war zones or in countries that China’s executives and businessmen might have some concerns in.

    I have to think that out of those 2,767 companies providing over two million security guards, that there are a few who have interests in overseas work.  I wouldn’t be surprised that a few of them might even consider themselves a PMC and are seeking to enter into this area of contracting in order to support China’s policy goals throughout the world. That’s if they have been watching how the US uses companies.

    Finally, it looks like they are going through a period of regulation concerns over how their industry is monitored and kept in check.  Nothing new there, and this is a problem world wide.  Some countries do better than others. Still, there will always be issues and especially when governments are involved with the process. lol –Matt

As China’s wealthy grow in numbers, so do their protectors

Bodyguard services are big hit

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As China’s wealthy grow in numbers, so do their protectors

By Keith B. RichburgSunday, September 19, 2010

BEIJING – Perhaps the most visible sign of the explosion of private wealth in China tries hard not to be visible at all – the private bodyguard.

They work as drivers or nannies, or blend into a businessman’s coterie looking like a secretary, a briefcase carrier or a toady. Unlike bodyguards in the United States, they are generally not tall and imposing; in fact, many are women, on the theory that females in the retinue attract less attention.

And also unlike in the United States, they are never armed, since private citizens in China are largely prohibited from owning firearms. Rather, Chinese bodyguards are martial arts experts, trained to disarm or subdue an attacker with a few quick thrusts, jabs and hand chops.

“In China, we don’t need people who know guns,” said Michael Zhe, president of Beijing VSS Security Consulting Ltd, which started in 2002 and counts itself as the country’s oldest private security firm. “Bodyguards can use one or two blows to stop an attacker.”

(more…)

Thursday, September 2, 2010

Aviation: Iceland’s Keflavik Airbase To Become Privatized ‘Top Gun’ School

SU-27s are an important part of Russian and Chinese air power but Mr ten Cate insists that ECA is not aiming to imitate either. “Russian fighter jets have been sold around the world so they are widely used,” he says. “We’re a generic enemy.”

A recruitment drive is under way for up to 45 qualified fighter pilots, as well as maintenance technicians. An advertisement was placed in an aviation trade publication last month offering pilots a salary of €160,000 a year – more than all but the most senior commercial airline pilots.

*****

     Pretty cool, and check out the salary the pilots of these things will get? But what is really interesting is that this company will have a very unique capability.  By constantly wargaming and learning the limitations and capabilities of these aircraft, they will be able to learn the best way to use them.  That information will definitely be used in future planning and training, along with the incredible war gaming these folks will be able to offer.

     The other interesting angle is that the only articles that I have found about this, is the FT ones I posted below, and a Russian Times article that bashed the hell out of the idea.  Of course they called this company a ‘private army’ and mercenary and whatever ‘evil’ western name they could use to fire up any criticism of the deal. A little miffed maybe? lol No commentary from China yet.

     Interesting move, and the jobs it will produce locally will be great for Iceland. It will also help them strategically, by setting up a school that will help their air force, and friendly air forces throughout the world who wish to gain a jet fighting capability for defeating Chinese and Russian aircraft. Not a bad gig for ECA Program Ltd. –Matt

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Sukhoi Su-27 Fighter

ECA has agreed to buy up to 33 Sukhoi Su-27 fighters. 

Cold war base to be private ‘Top Gun’ school

By Andrew Ward in Stockholm

August 30 2010

Iceland’s Keflavik airbase, a bulwark of western security during the cold war, would be home to two squadrons of Russian-made fighter jets under plans being considered by Reykjavik.

The Icelandic government is in talks about renting the airbase to a private company that says it is buying up to €1.2bn ($1.5bn) of Sukhoi warplanes from Belarus for use as a mock enemy in military training exercises.

ECA Program says it has already signed up five air forces keen to test their pilots and jets against an aircraft most commonly flown by the Russian and Chinese militaries.

(more…)

Wednesday, August 11, 2010

Kidnap And Ransom: Chinese Seek Anti-Terrorism Training For Work Abroad

     More and more Chinese workers head to places like Iraq, Nigeria and Pakistan to work in mining, oil-drilling and the sale of all things “Made in China.” But there is an underbelly to this economic growth.

     Increasingly, Chinese workers abroad are being confronted with the security risks in these turbulent countries. Chinese topped the list of kidnapped foreign nationals in 2008, followed by French and Germans, according to Special Contingency Risks, a British kidnap insurance firm. 

*****

     The quote up top really caught my eye for several reasons.  The Chinese are everywhere out there, and they are sending folks into some dangerous places.  I have talked about their ventures into Iraq, Afghanistan, and Africa in the past, and I am always on the look out for any information about their PSC or PMC related activities.

     Although with this story, it looks to me like these Chinese companies are dependent upon foreign training companies to increase their worker’s survivability out there. But as demand increase, so will the amount of companies able to provide such services.  More than likely, it will be Chinese companies who will continue to grow and probably with the assistance of foreign advisors.  At least until Chinese folks get their own industry expertise, and go it alone.

     But what intrigues me is that once a training industry takes hold, it usually evolves. Will the next step for these companies be actually providing security services?  Much like how the US market evolved with some of it’s training companies (Xe started as a training company for example).

     The other question is would the Chinese even allow a training company to evolve to that level? I think the answers to those questions will be how wars and regional instability will impact all of these really risky ventures they have taken on out there.  The Chinese are not immune to the ‘foreigner’ label, and a Somali pirate or a jihadist will find value in attacking them, just like they do with all other countries and their private ventures. The article made this point pretty clearly with the statistics presented.

    The article also mentioned the oil giant CNPC.  I would be very curious to read a briefing on any security issues they have come across.  According to the report below, they have operations in ’19 high risk regions’. I have to think that out of all of those operations, they must have some sort of Chinese security firm tasked with force protection? And yet we hear nothing about this security? Maybe they are using all local military forces or local national PSC companies? Who knows, and that is the kind of stuff I would like to read more about. –Matt

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Chinese seek anti-terrorism training for work abroad

By Coco Liu

August 10, 2010

SHANGHAI, China — Hired by Chinese businesses, Adi Talmor robs, kidnaps and does his general best to make thousands of workers suffer.

But Talmor isn’t a criminal; he’s a consultant. The 38-year-old former Israeli paratrooper instructs Chinese workers in what he calls personal security training. It’s a field that has recently emerged across China, mirroring the country’s expansion into some of the world’s more perilous markets.

In accordance with Beijing’s “go-global” strategy, state-owned enterprises have signed multibillion-dollar deals in Africa, Latin America and the Middle East. Meanwhile, trade has flourished. In 2008, China bypassed the United States to become Africa’s top trade partner.

More and more Chinese workers head to places like Iraq, Nigeria and Pakistan to work in mining, oil-drilling and the sale of all things “Made in China.” But there is an underbelly to this economic growth.

Increasingly, Chinese workers abroad are being confronted with the security risks in these turbulent countries. Chinese topped the list of kidnapped foreign nationals in 2008, followed by French and Germans, according to Special Contingency Risks, a British kidnap insurance firm.

(more…)

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