Edward Snowden: the whistleblower behind the NSA surveillance revelations

The 29-year-old source behind the biggest intelligence leak in the NSA’s history explains his motives, his uncertain future and why he never intended on hiding in the shadows (from guardian.co.uk)

The individual responsible for one of the most significant leaks in US political history is Edward Snowden, a 29-year-old former technical assistant for the CIA and current employee of the defence contractor Booz Allen Hamilton. Snowden has been working at the National Security Agency for the last four years as an employee of various outside contractors, including Booz Allen ( ISIN: US0995021062 ) and Dell (ISIN: US24702R1014).

Booz Allen Chart after 20 May 2013

The Guardian, after several days of interviews, is revealing his identity at his request. From the moment he decided to disclose numerous top-secret documents to the public, he was determined not to opt for the protection of anonymity. “I have no intention of hiding who I am because I know I have done nothing wrong,” he said.

Snowden will go down in history as one of America’s most consequential whistleblowers, alongside Daniel Ellsberg and Bradley Manning. He is responsible for handing over material from one of the world’s most secretive organisations – the NSA.

In a note accompanying the first set of documents he provided, he wrote: “I understand that I will be made to suffer for my actions,” but “I will be satisfied if the federation of secret law, unequal pardon and irresistible executive powers that rule the world that I love are revealed even for an instant.”

Despite his determination to be publicly unveiled, he repeatedly insisted that he wants to avoid the media spotlight. “I don’t want public attention because I don’t want the story to be about me. I want it to be about what the US government is doing.”

He does not fear the consequences of going public, he said, only that doing so will distract attention from the issues raised by his disclosures. “I know the media likes to personalise political debates, and I know the government will demonise me.”

Despite these fears, he remained hopeful his outing will not divert attention from the substance of his disclosures. “I really want the focus to be on these documents and the debate which I hope this will trigger among citizens around the globe about what kind of world we want to live in.” He added: “My sole motive is to inform the public as to that which is done in their name and that which is done against them.”

He has had “a very comfortable life” that included a salary of roughly $200,000, a girlfriend with whom he shared a home in Hawaii, a stable career, and a family he loves. “I’m willing to sacrifice all of that because I can’t in good conscience allow the US government to destroy privacy, internet freedom and basic liberties for people around the world with this massive surveillance machine they’re secretly building.”

‘I am not afraid, because this is the choice I’ve made’

Three weeks ago, Snowden made final preparations that resulted in last week’s series of blockbuster news stories. At the NSA office in Hawaii where he was working, he copied the last set of documents he intended to disclose.

He then advised his NSA supervisor that he needed to be away from work for “a couple of weeks” in order to receive treatment for epilepsy, a condition he learned he suffers from after a series of seizures last year.

As he packed his bags, he told his girlfriend that he had to be away for a few weeks, though he said he was vague about the reason. “That is not an uncommon occurrence for someone who has spent the last decade working in the intelligence world.”

On May 20, he boarded a flight to Hong Kong, where he has remained ever since. He chose the city because “they have a spirited commitment to free speech and the right of political dissent”, and because he believed that it was one of the few places in the world that both could and would resist the dictates of the US government.

In the three weeks since he arrived, he has been ensconced in a hotel room. “I’ve left the room maybe a total of three times during my entire stay,” he said. It is a plush hotel and, what with eating meals in his room too, he has run up big bills.

He is deeply worried about being spied on. He lines the door of his hotel room with pillows to prevent eavesdropping. He puts a large red hood over his head and laptop when entering his passwords to prevent any hidden cameras from detecting them.

Though that may sound like paranoia to some, Snowden has good reason for such fears. He worked in the US intelligence world for almost a decade. He knows that the biggest and most secretive surveillance organisation in America, the NSA, along with the most powerful government on the planet, is looking for him.

Since the disclosures began to emerge, he has watched television and monitored the internet, hearing all the threats and vows of prosecution emanating from Washington.

And he knows only too well the sophisticated technology available to them and how easy it will be for them to find him. The NSA police and other law enforcement officers have twice visited his home in Hawaii and already contacted his girlfriend, though he believes that may have been prompted by his absence from work, and not because of suspicions of any connection to the leaks.

“All my options are bad,” he said. The US could begin extradition proceedings against him, a potentially problematic, lengthy and unpredictable course for Washington. Or the Chinese government might whisk him away for questioning, viewing him as a useful source of information. Or he might end up being grabbed and bundled into a plane bound for US territory.

“Yes, I could be rendered by the CIA. I could have people come after me. Or any of the third-party partners. They work closely with a number of other nations. Or they could pay off the Triads. Any of their agents or assets,” he said.

“We have got a CIA station just up the road – the consulate here in Hong Kong – and I am sure they are going to be busy for the next week. And that is a concern I will live with for the rest of my life, however long that happens to be.”

Having watched the Obama administration prosecute whistleblowers at a historically unprecedented rate, he fully expects the US government to attempt to use all its weight to punish him. “I am not afraid,” he said calmly, “because this is the choice I’ve made.”

He predicts the government will launch an investigation and “say I have broken the Espionage Act and helped our enemies, but that can be used against anyone who points out how massive and invasive the system has become”.

The only time he became emotional during the many hours of interviews was when he pondered the impact his choices would have on his family, many of whom work for the US government. “The only thing I fear is the harmful effects on my family, who I won’t be able to help any more. That’s what keeps me up at night,” he said, his eyes welling up with tears.

‘You can’t wait around for someone else to act’

Snowden did not always believe the US government posed a threat to his political values. He was brought up originally in Elizabeth City, North Carolina. His family moved later to Maryland, near the NSA headquarters in Fort Meade.

By his own admission, he was not a stellar student. In order to get the credits necessary to obtain a high school diploma, he attended a community college in Maryland, studying computing, but never completed the coursework. (He later obtained his GED.)

In 2003, he enlisted in the US army and began a training program to join the Special Forces. Invoking the same principles that he now cites to justify his leaks, he said: “I wanted to fight in the Iraq war because I felt like I had an obligation as a human being to help free people from oppression”.

He recounted how his beliefs about the war’s purpose were quickly dispelled. “Most of the people training us seemed pumped up about killing Arabs, not helping anyone,” he said. After he broke both his legs in a training accident, he was discharged.

After that, he got his first job in an NSA facility, working as a security guard for one of the agency’s covert facilities at the University of Maryland. From there, he went to the CIA, where he worked on IT security. His understanding of the internet and his talent for computer programming enabled him to rise fairly quickly for someone who lacked even a high school diploma.

By 2007, the CIA stationed him with diplomatic cover in Geneva, Switzerland. His responsibility for maintaining computer network security meant he had clearance to access a wide array of classified documents.

That access, along with the almost three years he spent around CIA officers, led him to begin seriously questioning the rightness of what he saw.

He described as formative an incident in which he claimed CIA operatives were attempting to recruit a Swiss banker to obtain secret banking information. Snowden said they achieved this by purposely getting the banker drunk and encouraging him to drive home in his car. When the banker was arrested for drunk driving, the undercover agent seeking to befriend him offered to help, and a bond was formed that led to successful recruitment.

“Much of what I saw in Geneva really disillusioned me about how my government functions and what its impact is in the world,” he says. “I realised that I was part of something that was doing far more harm than good.”

He said it was during his CIA stint in Geneva that he thought for the first time about exposing government secrets. But, at the time, he chose not to for two reasons.

First, he said: “Most of the secrets the CIA has are about people, not machines and systems, so I didn’t feel comfortable with disclosures that I thought could endanger anyone”. Secondly, the election of Barack Obama in 2008 gave him hope that there would be real reforms, rendering disclosures unnecessary.

He left the CIA in 2009 in order to take his first job working for a private contractor that assigned him to a functioning NSA facility, stationed on a military base in Japan. It was then, he said, that he “watched as Obama advanced the very policies that I thought would be reined in”, and as a result, “I got hardened.”

The primary lesson from this experience was that “you can’t wait around for someone else to act. I had been looking for leaders, but I realised that leadership is about being the first to act.”

Over the next three years, he learned just how all-consuming the NSA’s surveillance activities were, claiming “they are intent on making every conversation and every form of behaviour in the world known to them”.

He described how he once viewed the internet as “the most important invention in all of human history”. As an adolescent, he spent days at a time “speaking to people with all sorts of views that I would never have encountered on my own”.

But he believed that the value of the internet, along with basic privacy, is being rapidly destroyed by ubiquitous surveillance. “I don’t see myself as a hero,” he said, “because what I’m doing is self-interested: I don’t want to live in a world where there’s no privacy and therefore no room for intellectual exploration and creativity.”

Once he reached the conclusion that the NSA’s surveillance net would soon be irrevocable, he said it was just a matter of time before he chose to act. “What they’re doing” poses “an existential threat to democracy”, he said.

A matter of principle

As strong as those beliefs are, there still remains the question: why did he do it? Giving up his freedom and a privileged lifestyle? “There are more important things than money. If I were motivated by money, I could have sold these documents to any number of countries and gotten very rich.”

For him, it is a matter of principle. “The government has granted itself power it is not entitled to. There is no public oversight. The result is people like myself have the latitude to go further than they are allowed to,” he said.

His allegiance to internet freedom is reflected in the stickers on his laptop: “I support Online Rights: Electronic Frontier Foundation,” reads one. Another hails the online organisation offering anonymity, the Tor Project.

Asked by reporters to establish his authenticity to ensure he is not some fantasist, he laid bare, without hesitation, his personal details, from his social security number to his CIA ID and his expired diplomatic passport. There is no shiftiness. Ask him about anything in his personal life and he will answer.

He is quiet, smart, easy-going and self-effacing. A master on computers, he seemed happiest when talking about the technical side of surveillance, at a level of detail comprehensible probably only to fellow communication specialists. But he showed intense passion when talking about the value of privacy and how he felt it was being steadily eroded by the behaviour of the intelligence services.

His manner was calm and relaxed but he has been understandably twitchy since he went into hiding, waiting for the knock on the hotel door. A fire alarm goes off. “That has not happened before,” he said, betraying anxiety wondering if was real, a test or a CIA ploy to get him out onto the street.

Strewn about the side of his bed are his suitcase, a plate with the remains of room-service breakfast, and a copy of Angler, the biography of former vice-president Dick Cheney.

Ever since last week’s news stories began to appear in the Guardian, Snowden has vigilantly watched TV and read the internet to see the effects of his choices. He seemed satisfied that the debate he longed to provoke was finally taking place.

He lay, propped up against pillows, watching CNN’s Wolf Blitzer ask a discussion panel about government intrusion if they had any idea who the leaker was. From 8,000 miles away, the leaker looked on impassively, not even indulging in a wry smile.

Snowden said that he admires both Ellsberg and Manning, but argues that there is one important distinction between himself and the army private, whose trial coincidentally began the week Snowden’s leaks began to make news.

“I carefully evaluated every single document I disclosed to ensure that each was legitimately in the public interest,” he said. “There are all sorts of documents that would have made a big impact that I didn’t turn over, because harming people isn’t my goal. Transparency is.”

He purposely chose, he said, to give the documents to journalists whose judgment he trusted about what should be public and what should remain concealed.

As for his future, he is vague. He hoped the publicity the leaks have generated will offer him some protection, making it “harder for them to get dirty”.

He views his best hope as the possibility of asylum, with Iceland – with its reputation of a champion of internet freedom – at the top of his list. He knows that may prove a wish unfulfilled.

But after the intense political controversy he has already created with just the first week’s haul of stories, “I feel satisfied that this was all worth it. I have no regrets.”


Supreme Court rules that human genes can’t be patented

A ruling by the Supreme Court that human genes can’t be patented is expected to increase access and drop the cost for tests for gene mutations that greatly raise the risk of developing breast or ovarian cancer.(from news.yahoo.com)

In a bit of a mixed message, the court unanimously decided that certain types of gene tests may still be protected by patents, yet it struck down patents that a company has long held for BRCA genes. The company makes the only test for two of those breast cancer genes, BRCA1 and BRCA2. “It appears that it will allow the market to open up so that other laboratories can offer the test,” said Rebecca Nagy, a genetics counselor at Ohio State University and president of the National Society of Genetic Counselors. And that should make the tests cheaper and available to more women, she said. Hours after the ruling, one company — DNATraits, part of Houston-based Gene By Gene, Ltd. — said it would offer BRCA gene testing in the United States for $995 — less than a third of the current price.

Use the link to read the Supreme Court decision (pdf).
supreme_court_decision_on_human_genome_patents

Drone warfare: Niger becomes latest frontline in US war on terror

Obama administration reliance on drones to fight al-Qaida and Islamic militants sees drones spread to Africa (from guardian.co.uk)

The newest outpost in the US government’s empire of drone bases sits behind a razor-wire-topped wall outside Niamey, blasted by 40C heat and the occasional sandstorm blowing from the Sahara.

The US air force began flying a handful of unarmed Predator drones from here last month. The grey, mosquito-shaped aircraft emerge sporadically from a borrowed hangar and soar north in search of al-Qaida fighters and guerrillas from other groups hiding in the region’s deserts and hills.

The harsh terrain of north and west Africa is rapidly emerging as yet another front in the long-running US war against terrorist networks, a conflict that has fuelled a revolution in drone warfare.

Since taking office in 2009, President Barack Obama has relied heavily on drones for operations, both declared and covert, in Afghanistan, Iraq, Pakistan, Yemen, Libya and Somalia. US drones also fly from allied bases in Turkey, Italy, Saudi Arabia, Qatar, the United Arab Emirates and the Philippines.

Now they are becoming a fixture in Africa. The US military has built a major drone hub in Djibouti, on the Horn of Africa, and flies unarmed Reaper drones from Ethiopia. Until recently, it conducted reconnaissance flights over east Africa from the island nation of Seychelles.

The Predator drones in Niger, a landlocked and dirt-poor country, give the Pentagon a strategic foothold in west Africa. Niger shares a long border with Mali, where an al-Qaida affiliate and other Islamist groups have taken root. Niger also borders Libya and Nigeria, which are also struggling to contain armed extremist movements.

Like other US drone bases, the Predator operations in Niger are shrouded in secrecy. The White House announced in February that Obama had deployed about 100 military personnel to Niger on an “intelligence collection” mission, but it did not make any explicit reference to drones. Since then, the defence department has publicly acknowledged the presence of drones here but has revealed little else. The Africa Command, which oversees US military missions on the continent, denied requests from a Washington Post reporter to interview American troops in Niger or to tour the military airfield where the drones are based, near Niamey’s international airport.

Government officials in Niger, a former French colony, were slightly more forthcoming. President Issoufou Mahamadou said his government invited Washington to send surveillance drones because he was worried that the country might not be able to defend its borders from Islamist fighters based in Mali, Libya or Nigeria.

“We welcome the drones,” Mahamadou said in an interview at the presidential palace in Niamey. Citing the “feeble capability” of many west African militaries, he said Niger and its neighbours desperately needed foreign help to track the movements of guerrillas across the Sahara and Sahel, an arid territorial belt that covers much of the region.

“Our countries are like the blind leading the blind,” he said. “We rely on countries like France and the United States. We need co-operation to ensure our security.”

The Predator drones in Niger are unarmed, US officials said, though they have not ruled out equipping the aircraft with Hellfire missiles in the future. For now, the drones are conducting surveillance over Mali and Niger.

US officials said they share video footage and other intelligence collected by the unmanned aircraft with French forces and African troops – including 670 soldiers from Niger – who are fighting the Islamist insurgency in Mali. Liaison officers from Niger, France and Chad work alongside US air force personnel who launch and land the drones from the base in Niamey.

Most of the surveillance missions are designed to track broad patterns of human activity and are not aimed at hunting individuals, said a senior US official, who spoke on the condition of anonymity to discuss military operations. Although French and African troops are engaged in combat in Mali, the Obama administration has not given the US military the same authorisation.

“The whole issue is lethality,” the senior official said. “We don’t want to abet a lethal action.”

But the rules of engagement are blurry. Intelligence gathered by the Predators could indirectly help the French fix targets for airstrikes or prompt Nigerien security forces to take action on their territory.

Moreover, US officials have acknowledged that they could use lethal force under certain circumstances. Last month, army general Martin Dempsey, the chairman of the Joint Chiefs of Staff, told Congress that the US military had designated “a handful of high-value individuals” in north Africa for their suspected connections to al-Qaida, making them potential targets for capture or killing.

The Pentagon declined to say exactly how many Predator aircraft it has sent to Niger or how long it intends to keep them there. But there are signs that the US military wants to establish a long-term presence in west Africa.

After years of negotiations, the Obama administration signed an agreement with Niger in January that provides judicial protection and other safeguards for US troops in the country.

Two US defence officials, speaking on the condition of anonymity to discuss internal planning, said the Pentagon ultimately wants to move the Predators to the Saharan city of Agadez, in northern Niger.

Agadez is closer to parts of southern Algeria and southern Libya where fighters and arms traffickers allied with al-Qaida have taken refuge. The airfield in Agadez, however, is rudimentary and needs improvements before it can host drones, officials said.

The US military has used Agadez since last year as a refuelling stop for U-28 spy planes – small, piloted aircraft flown by private contractors. US officials have hesitated to send those surveillance aircraft across the border into Mali because of fears that the crews could be taken hostage if the planes crash or are shot down.

Government officials in Niger declined to say whether they viewed the US drones as a short-term fix or a permanent addition. “I can’t tell you how long they will be here,” said Mahamadou, the president. “How long it will take to stabilise Mali is one factor. The stabilisation of Libya is another.”

At the same time, he said Niger cannot rely on French and US military forces forever and needs to ensure its own security. To that end, the US government has agreed to give Niger two Cessna Grand Caravan aircraft to transport troops and conduct surveillance.

“The intelligence is crucial for us,” said Colonel Mamane Souley, director of exterior relations for the Nigerien armed forces. “We have a vast territory, and in that sense aircraft are fundamentally important.”

The presence of hi-tech Predator drones in Niger’s skies contrasts jarringly with life on the ground. There are only a handful of paved roads in the capital. Many people live in mud-brick shanties. Goats and camels are a common sight in the city centre.

US and Nigerien officials had worried that the drones might spur a popular backlash in Niger, where about 90 % of the population is Muslim. Extra security barriers were raised outside the US and French embassies as a precaution. So far, however, reaction has been muted, and many people seem to favour anything that the US and French militaries can do to prevent a spillover of violence from Mali.

“Of course, we might have some narrow-minded Nigeriens,” said Marou Amadou, who serves as justice minister and chief government spokesman. “But people understand that the presence of these drones is very, very helpful … What is happening in Mali could happen in Niger also.”

Nonetheless, US troops have kept a low profile. Americans with short haircuts and a military bearing occasionally surface at a couple of Niamey hotels to eat barbecue or drink beer, but most confine themselves to the base.

The Africa Command did not respond to questions about how many US troops are in Niger, but one US official said the number of air force personnel had increased beyond the 100 troops Obama said last month he had deployed.

“We just know there are drones; we don’t know what they are doing exactly,” said Djibril Abarchi, chairman of the Nigerien Association for the Defence of Human Rights, an independent watchdog group. “Nothing is visible. There is no transparency in our country with military questions. No one can tell you what’s going on.”

Most Nigeriens are strongly opposed to al-Qaida in the Islamic Maghreb, the terrorist network’s affiliate, and recognise that their country is vulnerable without foreign military help, said Boureima Abdou Daouda, an imam in Niamey who leads a regional council of religious leaders that advises governments on countering extremism.

At the same time, as in many African countries, the presence of foreign troops is a sensitive issue given the history of colonialism in Niger. Daouda warned that the government could face trouble if it doesn’t shore up popular support and do a better job of publicly explaining why the American drones are necessary.

“Someone with bad intentions could say, ‘They are here to cause strife with Muslims’,” he said. “People might demonstrate. They might riot. Big flames begin with little flames.”

(This article appeared in the Guardian Weekly, which incorporates material from the Washington Post)

Offshore-Leaks

Offshore financial industry leak exposes identities of 1,000s of holders of anonymous wealth from around the world. The names have been unearthed in a novel project by the Washington-based International Consortium of Investigative Journalists [ICIJ], in collaboration with the Guardian and other international media. (from homment.com)
Many Greek-owned offshore companies in the files appear to operate under the radar of taxman
Thaksin Shinawatra’s former wife among Thai names in offshoreleaks files
Canadian senator’s husband shifted money into offshore
via ICIJ
  • Government officials and their families and associates in Azerbaijan, Russia, Canada, Pakistan, the Philippines, Thailand, Canada, Mongolia and other countries have embraced the use of covert companies and bank accounts.
  • The mega-rich use complex offshore structures to own mansions, yachts, art masterpieces and other assets, gaining tax advantages and anonymity not available to average people.
  • Many of the world’s top’s banks – including UBS, Clariden and Deutsche Bank – have aggressively worked to provide their customers with secrecy-cloaked companies in the British Virgin Islands and other offshore hideaways.
  • A well-paid industry of accountants, middlemen and other operatives has helped offshore patrons shroud their identities and business interests, providing shelter in many cases to money laundering or other misconduct.
  • Ponzi schemers and other large-scale fraudsters routinely use offshore havens to pull off their shell games and move their ill-gotten gains.

 

Millions of internal records have leaked from Britain’s offshore financial industry, exposing for the first time the identities of thousands of holders of anonymous wealth from around the world, from presidents to plutocrats, the daughter of a notorious dictator and a British millionaire accused of concealing assets from his ex-wife.

Sample offshore owners named in the leaked files include:

• Jean-Jacques Augier, François Hollande’s 2012 election campaign co-treasurer, launched a Caymans-based distributor in China with a 25% partner in a BVI company. Augier says his partner was Xi Shu, a Chinese businessman.

• Mongolia’s former finance minister. Bayartsogt Sangajav set up “Legend Plus Capital Ltd” with a Swiss bank account, while he served as finance minister of the impoverished state from 2008 to 2012. He says it was “a mistake” not to declare it, and says “I probably should consider resigning from my position”.

• The president of Azerbaijan and his family. A local construction magnate, Hassan Gozal, controls entities set up in the names of President Ilham Aliyev’s two daughters.

• The wife of Russia’s deputy prime minister. Olga Shuvalova’s husband, businessman and politician Igor Shuvalov, has denied allegations of wrongdoing about her offshore interests.

•A senator’s husband in Canada. Lawyer Tony Merchant deposited more than US$800,000 into an offshore trust.

He paid fees in cash and ordered written communication to be “kept to a minimum”.

• A dictator’s child in the Philippines: Maria Imelda Marcos Manotoc, a provincial governor, is the eldest daughter of former President Ferdinand Marcos, notorious for corruption.

• Spain’s wealthiest art collector, Baroness Carmen Thyssen-Bornemisza, a former beauty queen and widow of a Thyssen steel billionaire, who uses offshore entities to buy pictures.

• US: Offshore clients include Denise Rich, ex-wife of notorious oil trader Marc Rich, who was controversially pardoned by President Clinton on tax evasion charges. She put $144m into the Dry Trust, set up in the Cook Islands.

It is estimated that more than $20tn acquired by wealthy individuals could lie in offshore accounts. The UK-controlled BVI has been the most successful among the mushrooming secrecy havens that cater for them.

The Caribbean micro-state has incorporated more than a million such offshore entities since it began marketing itself worldwide in the 1980s. Owners’ true identities are never revealed.

Even the island’s official financial regulators normally have no idea who is behind them.

The British Foreign Office depends on the BVI’s company licensing revenueto subsidise this residual outpost of empire, while lawyers and accountants in the City of London benefit from a lucrative trade as intermediaries.

They claim the tax-free offshore companies provide legitimate privacy. Neil Smith, the financial secretary of the autonomous local administration in the BVI’s capital Tortola, told the Guardian it was very inaccurate to claim the island “harbours the ethically challenged”.

He said: “Our legislation provides a more hostile environment for illegality than most jurisdictions”.

Smith added that in “rare instances …where the BVI was implicated in illegal activity by association or otherwise, we responded swiftly and decisively”.

The Guardian and ICIJ’s Offshore Secrets series last year exposed how UK property empires have been built up by, among others, Russian oligarchs, fraudsters and tax avoiders, using BVI companies behind a screen of sham directors.

Such so-called “nominees”, Britons giving far-flung addresses on Nevis in the Caribbean, Dubai or the Seychelles, are simply renting out their names for the real owners to hide behind.

The whistleblowing group WikiLeaks caused a storm of controversy in 2010 when it was able to download almost two gigabytes of leaked US military and diplomatic files.

The new BVI data, by contrast, contains more than 200 gigabytes, covering more than a decade of financial information about the global transactions of BVI private incorporation agencies. It also includes data on their offshoots in Singapore, Hong Kong and the Cook Islands in the Pacific.

Alhaji Aliko Dangote to build $8bn oil refinery in Nigeria

Africa’s richest man, Alhaji Aliko Dangote, plans to invest up to $8bn to build a Nigerian oil refinery with a capacity of around 400,000 barrels a day by late 2016, the tycoon told Reuters on Tuesday. (from onlinenigeria.com)

This will almost double Nigeria’s current refining capacity.

“This will really help not only Nigeria but sub-Saharan Africa. There has not been a new refinery for a long time in sub-Saharan Africa,” Dangote said in a telephone interview.

The country currently has the capacity to produce some 445,000 barrels per day among four refineries, but they operate well below that owing to decades of mismanagement and corruption in Africa’s leading energy producer.

Nigeria, the continent’s second-biggest economy, relies on subsidised imports for 80 per cent of its fuel needs.

A surge in domestic capacity would be welcomed by investors in Nigeria, but it would cut into profits made by European refiners and oil traders who would lose part of that lucrative market.

Dangote said the country’s ability to import fuel would soon be challenged.

“In five years, when our population is over 200 million, we won’t have the infrastructure to receive the amount of fuel we use. It has to be done,” he said.

Past efforts to build refineries have often been delayed or cancelled, but analysts have said Dangote should be able to build a profitable Nigerian refinery, owing to his past successes in industry and his strong government connections.

The Dangote Group’s cement manufacturing, basic food processing and other industries have helped lift his personal fortune to $16.1bn from $2.1bn in 2010, according to the latest Forbes estimate.

Nigeria has two refineries in its main Port Harcourt oil hub, one in the Niger Delta town of Warri, and one in Kaduna in the North that serve 170 million people. Not one of them functions at full capacity.

Analysts have said previous attempts to get the refineries going have been held back by vested interests such as fuel importers profiting from the status quo. Dangote said this concerned him.

“The people who were supposed to invest in refineries, who understand the market, are benefiting from there being no refineries because of the fuel import business,” he said. “Some … are going to try to … interfere.”

Nigeria’s government subsidises fuel imports to keep pump prices well below the market rate at a cost of billions of dollars a year. Fuel subsidies are the single biggest item on the country’s budget.

Dangote said making a new refinery run at a profit would work even if the government failed to scrap the subsidised fuel price that has deterred others from investing.

“We’ve done our numbers and the numbers are okay,” he said.

April 30th E-Cat Delivery Day

Today has been identified as the day that E-Cats are supposed to be delivered to Andrea Rossi’s US partner. I thought I’d put up a new thread to discuss any news relating to the event. (from e-catworld.com)

There’s not much to say about the delivery at this point since very little has been revealed. Rossi says that the shipping time of the 3 different plants from Italy to the US destination is about 20 days, unless the shipment is going to the west coast of the US and therefore has gone through the Panama Canal.

Rossi has said there will be pictures released, but whether that will be today or later remains to be seen. Anyway, if you’re driving around the US today and you see a big blue container on the back of a truck — be sure to follow it and tell us where it ends up!