Cash PayDay Loan

The Tokyo District Court found former Democratic Party of Japan President Ichiro Ozawa not guilty Thursday over his alleged involvement in a shady land deal by his political funds management group, Rikuzan-kai.

The acquittal of the DPJ heavyweight is certain to affect political developments in this country, observers say.

The team of court-appointed lawyers serving as prosecutors in the trial had demanded a three-year prison term for Ozawa, 69, on charges of violating the Political Funds Control Law.

The Tokyo District Public Prosecutors Office had chose not to indict Ozawa because its special investigation squad was unable to find sufficient evidence to establish a case against him.

Though, after the Tokyo No. 5 Committee for the Inquest of Prosecution concluded twice that Ozawa merited indictment, he was indicted in January last year.

Ozawa pleaded not guilty in the trial, which started in October.

The court-appointed lawyers argued that Rikuzan-kai bought a plot of land in Setagaya Ward, Tokyo, in October 2004 to build a dormitory for Ozawa’s secretaries.

Rikuzan-kai received a cash loan of 400 million yen from Ozawa as part of the funds to buy the property, but failed to list the money in its political funds report for 2004, they said.

It instead listed its spending on the land buy in a report the following year.

The lawyers also argued that Ozawa had been informed by his secretaries about these decisions and approved them.

In connection with the land deal, House of Representatives member Tomohiro Ishikawa, 38, who was responsible for administrative work at Rikuzan-kai, and two other former secretaries were indicted on charges of violating the Political Funds Control Law.

Last year, the Tokyo District Court handed down suspended sentences to all three secretaries.

They have appealed to a higher court.

The mandatory indictment system was introduced following the enactment of the revised Inquest of Prosecution Law in May 2009.

Ozawa’s case is the second in which a defendant indicted under this system was found not guilty.

Article source: http://asiaone.feedsportal.com/c/34151/f/618414/s/1ebeb80f/l/0L0Sasiaone0N0CNews0CAsiaOne0J2BNews0CAsia0CStory0CA1Story20A120A4260E3421130Bhtml/story01.htm

Now they are exploiting a loophole that was left on purpose? Anyway, I talked to a guy who works for a debt collecting company for various payday loan lenders. He said that about 80% of people who take a payday loan have difficulties meeting the scheduled payments. I reckon the fault is on both sides – payday companies and their customers who try to take out several online payday loans hoping to solve their long term financial problems. The irony is that the government should protect people from their own poor management skills. That’s ironic, in my opinion and should it be the job of the government or our educational system instead?

“Nothing fantastic was ever been achieved without enthusiasm.”
Ralph Waldo Emerson

Article source: http://kdrv.com/news/local/243978

Consumer advocates in Washington have pledged to battle payday lenders, the quick-cash loan shops that often charge ruinously high interest rates to people in need.

But the lenders aren’t going down without an extremely well funded fight.

So far, payday lenders have contributed at least $1.32 million to federal candidates this election cycle, according to the watchdog group Citizens for Responsibility and Ethics in Washington. That puts the lenders on track to break their own record for federal campaign contributions.

And the top three beneficiaries of this largesse? They’re all Republican lawmakers in a position to make key decisions about consumer finance.

Representative Jeb Hensarling, vice chair of the House Financial Services Committee, has gotten $36,500 in payday-lender contributions to date, according to CREW. Senator Richard Shelby, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, has received $32,000. And Rep. Spencer Bachus, who chairs the House Financial Services Committee, has taken in $29,000 so far.

The past few years have been excellent to payday lenders. Mass layoffs and flat wages have contributed to a climate where millions of Americans are struggling to make ends meet. As a result, more and more people have gone looking for stopgap loans, even though it often leads to a cycle of debt that ends in bankruptcy. As of 2010, payday lending in the U.S. was a $42 billion industry.

But there’s been a pushback. The Consumer Financial Protection Bureau has pledged to crack down on abusive lending practices. Other regulators have joined in, like the Federal Trade Commission, which is growing less tolerant of payday loan operations that affiliate themselves with Native American tribes in order to sidestep U.S. law. And communities like Birmingham, Alabama are holding public meetings to explore alternatives to loan shops.

Given the renewed, unfriendly focus on payday lenders in Washington, then, it makes sense that the industry would step up its campaign contribution efforts. After all, reaching out to politicians is a method that often seems to work, whether it’s corporations looking for a lower tax rate or banking advocates hoping to water down financial regulatory legislation.

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Article source: http://www.huffingtonpost.com/2012/04/20/payday-lending-campaign-contributions_n_1440493.html

Winchester cyclist surprises parents after year-long cycle across Asia

7:00am Wednesday 18th April 2012 in News

Hannah Timms (far right) and boyfriend Philip Large (second right) surprise her family after cycling across Asia for a year

FOR most parents a surprise visit from their grown-up children means dirty washing or a cash loan.

But Hannah Timms chose to surprise her parents in Winchester by returning home two months early from a year-long trip to Asia.

Hannah, of Roman Road, Twyford, returned home last weekend after cycling through Asia with boyfriend Philip Large, from Coventry.

The pair sold most of their possessions to fund the trip, including their phones, so they could not give her parents any warning of their impending arrival.

Hannah, 30, said: “A year ago in May we left Winchester with two second hand bicycles with no more than a dream to cycle from Turkey to China. We were complete novices who just wanted to challenge
ourselves to do something on a year out.

“We loved it so much we continued all the way through south East Asia to Singapore.

The pair cycled through 13 countries covering 12,000km encountering a variety of weird and wonderful things along the way.

Hannah added: “It has been an incredible trip full of highs and lows – being chased down the motorway by packs of wild dogs in Turkey, waking up to fish being thrown at our tent in Georgia and making
an advent on Azerbaijani TV eating tuna in a roadside ditch were just some of the highlights.”

They flew to Paris from Asia and then caught a ferry to Portsmouth before getting on their bikes once again to ride to Twyford.

The pair also kept a blog of their exploits at spoontravel.blogspot.com.

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Article source: http://www.hampshirechronicle.co.uk/news/9653607.Winchester_cyclist_surprises_parents_after_year_long_cycle_across_Asia/r/?ref=rss

ROCKFORD (WIFR) — Rockford Mayor Larry Morrissey is reacting to a council proposal that would restrict some stores from setting up shop in the city.

Morrissey says he wants to hear from the public before forming an opinion on the issue. Aldermen are talking about enforcing a local law that would limit the amount of cash loan, tobacco, thrift and pawn shops that can go in to a certain area of Rockford. Some council members say the businesses bring down the quality of life in the area.

Mayor Larry Morrissey, (I) Rockford, says, “I reckon it’s a tool in the past that’s been used in the city of Rockford and our staff is looking at what was used well in other communities and is taking it back to the city council to make a recommendation.”

Aldermen say they need more time to discuss the issues and will bring up the topic again within the next two months.

Article source: http://www.wifr.com/news/headlines/Aldermen_to_Discuss_Council_Proposal_Restricting_Some_Store_Openings_146545875.html

DALLAS (CBSDFW.COM) – When Damion Pugh needed money quick, his Breitling watch gave him a bright thought. Instead of going to a pawn shop, Pugh used Pawngo –– a web based pawn service.

“The price they gave me was a very solid price.” Pugh said.

Alexis Ferguson wanted a solid price for her ring.

“I tried Craigslist and it was a small scary, I didn’t want to meet with strangers. I tried a brick and mortar pawn shop, and they offered me an insultingly low amount for it and then I tried Pawngo and they gave me a honest offer.” Ferguson said.

Online pawning is the thought of Denver inhabitant Todd Hill.

“They’re banking online, they’re buying things from Amazon online, the world is all online – why not the pawn shop online?” Hill questioned.

Customers use prepaid FedEx boxes to send their items to Pawngo where the item is evaluated and a cash loan offer made using the product as collateral.

Typically, the interest is three to six percent over three to six months, and if the loan is paid off, the individual gets his item back.

“About 85 percent of the people that get a loan from us really return to get those assets,” Hill said.

Hill says online customers have higher end items to pawn from jewelry, special watches, even Louis Vuitton handbags. And with the economy and the credit crunch, the need for quick cash has never been greater.

Hill says that all property is kept in secure vaults and gets returned once loans are paid off.

The average loan is around $2,000, and since June, more than $3 million has been loaned out.

Article source: http://dfw.cbslocal.com/2012/04/09/customers-turn-to-online-pawn-shop-for-quick-cash/

Matthew D. Hutcheson, 41, of Eagle, was indicted on Tuesday by a federal grand jury in Boise on 17 counts of wire fraud and 14 counts of theft from an employee pension benefit plot.

Hutcheson was arrested Wednesday by the FBI with help from the Ada County Sheriff’s Office. His initial advent in federal court is set for 10 a.m. Thursday.

The indictment alleges that beginning in 2010, Hutcheson misappropriated over $5 million from pension plans he managed. Some of the money he took he used to try to buy Tamarack Resort in Donnelly.

Here are more details from a press release from U.S. Attorney Wendy J. Olson:

Hutcheson was a trustee and fiduciary for a number of multiple employer pension plans, including the G Fiduciary Retirement Income Security Plot (the “G Fid Plot”), National Retirement Security Plot 401(k) (the “NRSP”), and the Retirement Security Plot Trust (the “RSPT”). As a trustee and fiduciary, he owed a duty to plot participants to act solely in their interests and to safeguard plot assets, and to refrain from engaging in self-dealing and other prohibited transactions.

According to the indictment, from January 2010 through December 2010, Hutcheson allegedly misappropriated approximately $2,031,688 of G Fid Plot assets for his personal use. On twelve occasions, Hutcheson directed the G Fid Plot record keeper to effect wire transfers of plot assets from the G Fid Plot account at Charles Schwab to bank accounts controlled by Hutcheson and to other bank accounts for his personal benefit. The indictment alleges that Hutcheson used these assets to extensively mend his personal residence, to repay personal loans, to buy luxury automobiles, motorcycles, all-terrain vehicles, and a tractor, and for other personal expenses. When G Fid Plot clients, plot record keepers, and others requested information about the location and status of the plot assets, Hutcheson allegedly misrepresented that they were safely invested.

Additionally, according to the indictment, from January 2010 through December 2010, Hutcheson is alleged to have misappropriated approximately $3,276,000 of RSPT Plot assets to pursue the buy of the Tamarack on behalf of a limited liability corporation he controlled, called Green Valley Worth, LLC. In December 2010, Hutcheson directed the RSPT Plot record keeper to effect a wire transfer of approximately $3 million from the RSPT Plot to an escrow account for the benefit of Green Valley Worth, LLC. Hutcheson directed the RSPT Plot record keeper to clarify the transaction in plot records as an investment in a fixed income bank note. In reality, Hutcheson used the $3 million to buy a bank note secured by a majority interest in the Osprey Meadows Golf Course and Lodge at the Tamarack Resort in the name of Green Valley Worth (not the RSPT Plot). Hutcheson later obtained a $425,000 cash loan from a private lender in Virginia using the same bank note as collateral, and placing the lender above other creditors in case of default. When the RSPT Plot auditor questioned Hutcheson about the investment, Hutcheson told the auditor there was no plot investment in a fixed income bank note, and that he had “loaned” the money from the RSPT Plot to Green Valley Worth. Hutcheson produced alleged loan documents to the auditor, but they were allegedly fraudulent and forged In addition, in December of 2010, Hutcheson directed the RSPT Plot record keeper to effect a wire transfer of approximately $275,000 from the RSPT Plot to a bank account controlled by Hutcheson. Hutcheson transferred $250,000 of this money to an escrow account at US Bank to demonstrate to the Tamarack Corporation’s creditors that Green Valley Holding had the financial means to buy the resort.

The indictment contains a forfeiture allegation seeking approximately $5,307,688, or substitute assets, including property, valued at this amount. Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release. Each count of theft from an employee pension benefit plot is punishable by up to five years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release.

The U.S. Attorney’s Office is committed to protecting consumers who place their trust in those charged with protecting their investments,” said Olson. “We take allegations of pension fraud very seriously. I commend the federal law enforcement officers who conducted the deliberate and detailed investigation in this case.”

“Pension plot fraud represents not only a violation of the law but a betrayal of trust,” said Assistant Secretary of Labor for Employee Benefits Security Administration Phyllis C. Borzi. “Those who provide services for workers saving for retirement must serve the best interests of those workers. The Department of Labor will continue to pursue all possible avenues to root out fraud in employee benefits management. In this case and many others we are pleased to team with the Justice Department to aggressively investigate fraudulent conduct aimed at stealing workers’ hard-earned retirement savings.”

The case was investigated by the United States Department of Labor, Employee Benefits Security Administration, and the Federal Bureau of Investigation.

Article source: http://www.idahostatesman.com/2012/04/11/2071426/would-be-tamarack-buyer-indicted.html

CEBU, Philippines – Sample comparative assessment: Brgy Sawang Calero (2009 to 2011)

No. of Services 200920102011

BeneficiariesAvailed

171 familiesOperation Timbang30%89%100%

Deworming95%100%100%

Immunization80%85%95%

 Pre-natal65%100% 100%

 Post-natal80%86% 95%

The government intends to meet the goals of the Pantawid Pamilyang Pilipino Program in five years. The program started in 2009.

How it works

The Pantawid Pamilyang Pilipino Program is currently working in the lives of 52,945 Cebuano families. There are 136,241 families benefiting from the program in the entire Central Visayas.

Of the 52,945 households in Cebu Province, 4,414 families are from 23 barangays in Cebu City.

These families receive cash aid from the national government once every two months, but DSWD emphasized the 4Ps is not a dole-out program. In fact, certain conditions must be met before a household can avail of the conditional cash transfer: 

· Pregnant women must undergo prenatal and postnatal care and must be helped by a skilled birth attendant during delivery.

· Parents and guardians must attend family development sessions that cover various topics about family development. Examples of which are family plotting sessions, mothers’ classes and parent effectiveness seminars.

· Children of up to five years ancient must receive regular defensive health check-ups and vaccines.

· Children three to five years ancient must attend day care or pre-school classes with at least 85 percent attendance.

· Children six to 14 years ancient must be enrolled in elementary or high school with at least 85 percent attendance.

These conditionalities aim to take up several social concerns including the country’s low educational achievement, high rate of children who are out of school and the rate of dropouts, high rate of maternal and infant mortality and malnutrition among children.

Beneficiaries are entitled to P500 per month for health and nutrition expenses and P300 per month per child (14 years and below) for educational expenses. DSWD allows for a maximum of three children per family to be included in the program.

Through the DSWD’s partnership with the Local Government Units, the Pantawid beneficiaries are prioritized in all services of the LGU.

In Cebu City, 3,651 Pantawid beneficiaries were enrolled by the Cebu City Government in the Philippine Health Insurance Corp. (Philhealth) to aid them during hospitalization and emergency medical needs.

The city government also assists in the conduct of seminars and other activities related to their development.

DSWD and Cebu City has entered into a Memorandum of Covenant wherein the city has sworn to provide the necessary supplies, resources and services that these families need on their trip out of the vicious cycle of poverty.

The city pledged, among others, to improve the services in the barangay health centers, improve the quality of education in schools and make a fit for human habitation and sustainable convergence for them to live in.

Delisting

If there are conditions to qualify for the program, there are also grounds for removal.

Failure to comply with any of the conditions for three consecutive offenses will delist the family from the program,but Maria Taping, 4Ps City Link for Cebu City, poised that due process will be observed before a family is delisted.

Families that fail to comply are subject for investigation, house follow-ups and counseling.

Since it started four years ago in 10 pilot barangays in Cebu City, there have been 316 families delisted or removed from the program.

The pilot beneficiaries in Cebu City referred to as “Set 1” beneficiaries was comprised of 2,559 families from Barangays Duljo-Fatima, Inayawan, Sudlon I, Sudlon II, Tagba-o, Kalunasan, T. Padilla, Tejero, Mambaling and Sawang Calero.

Last year, DSWD added 1,855 beneficiaries referred to as “Set 4” beneficiaries from 13 more Cebu City barangays.

The additional beneficiaries are from Barangays Lorega, Cambinocot, Luz, Mabolo, Carreta, Sambag II, Busay, Bulacao, Ermita, Pasil, Suba, Basak-Pardo and Basak San Nicolas.

At present, there are 4,414 family beneficiaries in Cebu City. Only one family from Set 4 was delisted since it started last year.

The reasons for delisting vary. The most common ones are transfer of residence (135 families), no qualified children beneficiaries (104 families), waiving (72 families) and double entry (six families).

The 71 families that waived their inclusion into the program were those, after a year or so, were able to prove that they could already stand on their own.

Compliance

Amidst massive criticism, the DSWD in Central Visayas maintains that the program has been successful because “numbers won’t lie.”

The compliance rate in Cebu City and the whole Region 7 at large is reportedly either “consistent” or “increasing” each year.

As of 2011, the Compliance Rate Assessment of DSWD showed that compliance rate in three areas of focus did not go below 90 percent.

In Cebu City, the 1,246 children ages three to five years ancient were observed to be attendance day-care or pre-school classes 95 percent of the time. In the entire Central Visayas, 38,842 children in the same age bracket were observed to be attendance classes 94 percent of the time.

Irene Akilet, one of the five Pantawid City Links for Cebu City, said the attendance rate is way above average considering that the children are only required to attend classes at least 85 percent of the time.

For children beneficiaries aged six to 14 years ancient, the average attendance rate is 96.1 percent. In the entire region, the average attendance rate for children six to 14 years ancient is 94.7 percent.

Parents are also reportedly taking their children to health centers for regular check-ups, inoculation and deworming while pregnant women are visiting health centers more often for pre-natal or post-natal services.

The average compliance rate in the area of health in Cebu City is 94 percent. In Region 7, the compliance rate for health center visit is 95.5 percent.

This means that children and mothers receive proper health care from government health facilities 94 percent frequently.

Attendance to Family Development Sessions in Cebu City is 95.8 percent and 98 percent in the whole region.

For example, records of Barangay Sawang Calero, one of the pilot barangays reached out by 4Ps in 2009, showed that children have undergone deworming and immunization more often compared to the last two years.

Health officers are also able to monitor their health condition more closely. One way to monitor children’s nutrition is by monitoring their weight and height, which is being obtained through the so-called “Operation Timbang.”

Similarly, more expecting mothers have begun availing pre-natal services, which if carried on further, is expected to fall the rate of maternal and infant mortality.

Taping said that barangays covered by 4Ps have recorded low infant and maternal mortality because pregnant women under the program now give birth with the help of a skilled birth attendant compared to previous years when many expectant mothers from poor households ideal the help of “hilots”.

A 2011 accomplishment report from the Cebu City Health Department Accomplishment showed that 98 percent of total natalities (15,481 live births) were handled by medical professionals. Only 1.79 percent (272 live births) was handled by “hilots”.

Beneficiaries’ compliance rate in health is monitored through their records at the barangay health center. Beneficiaries are assessed every two months.

Sawang Calero’s compliance in education has also showed significant improvement from 70 percent attendance rate in 2009 to 85 percent in 2010 and 95 percent in 2011.

Taping said children are more motivated to go to school because they are healthy and have money to spend for food and school expenses. Children’s attendance is monitored through reports from teachers and school principals.

In some cases, especially those of children with below the required attendance rate, concerned personnel visit the kids at their schools and even at their homes to get to the root of the problem.

Taping said that through family development sessions, barangays have started reporting low cases of child abuse and child labor.

“This is because parents already know their responsibilities as parents and the rights of their children,” Taping said.

Next level

Once these families have proven that they can manage their finances well, they are prioritized under the Self Employment Help Kaunlaran (SEA-K) Project, another program of government.

SEA-K is a non-interest cash loan granted to poor families to help them start a living, which is to be paid within a year. Grantees can avail of a maximum loan of P10,000. — /JMO (FREEMAN)

Article source: http://www.philstar.com/Article.aspx?articleId=795535&publicationSubCategoryId=107

Course: The Federal Reserve and Its Role in Today’s Economy, George Washington University (Washington)

Guest Lecturer: Ben S. Bernanke

Lecture title: “Origins and Mission of the Federal Reserve”

Date: March 20, 2012

Notes:

– Teacher enters the room to polite applause. He seems excited to be here. “This is what I used to do before I got into this line of work.”

– Prof. Bernanke promises three more lectures. One on Thursday, one on March 27 and one on March 29. (Phew! Still time to get through Lords of Finance – and the rest of the reading list.)

– Central banking goes back hundreds of years; the Bank of England made in 1694. (And they have been making a mess of things ever since! Ha! Joking! Too many Ron Paul rallies. Prof. Bernanke didn’t say that.)

– To know the role of central banks, consider the movie It’s a Wonderful Life (Surely you mean Wall Street: Money Never Sleeps?! How could the Fed have helped Jimmy Stewart? If the Fed was on the job, Jimmy Stewart could have used his excellent collateral to get a cash loan to stop the run on his bank. The Bank of England figured this out early – a journalist called Walter Bagehot –theorized that a central bank could stem panics by lending to just about anyone who needed the money, although at a premium to discourage banks from taking advantage of the situation. The U.S. was slow to coming around to Bagehot’s way of thinking. As a result, the U.S. had banking panics in 1873, 1884, 1890, 1893 and 1907. In 1883, 500 banks failed!

Pause.

New topic: the Gold Standard. (Prof. Bernanke has a lot to say on this subject for some reason.)

– To a significant extent, gold standards are automatic, reducing dramatically the role of central banks. “Unfortunately, gold standards are far from perfect monetary systems,” Prof. Bernanke says. Why? They represent an “dreadfully huge waste of resources,” he says. You have to go to South Africa or some place and dig it out of the ground, and then take it all back to the New York Fed and store it in the basement. “All this gold was being dug up and place in another hole,” Prof. Bernanke says. (Note to self: must run that by the folks at http://www.ronpaul.com/welcome.php)

– No scope for central banks to use monetary policy under a gold standard. Also, gold standards require fixed currencies, requiring other countries to accept the Fed’s monetary policy. (Contemporary example: China fixes its currency to the dollar, and therefore must accept simpler monetary policy set for the weaker U.S. economy. “Those low interest rates may not be appropriate for China,” Prof. Bernanke says.) And another reason gold standards are terrible: they open up central banks for speculative attacks like what happened to the Bank of England in the early 1930s. And yet another reason to despise the gold standard: it tends to make deflation. William Jennings Bryan recognized this. He was the Democratic nominee for president in 1896, 1900 and 1908. His main thought was to weaken the gold standard. He lost each election.

Quick forward to 1914. The Fed is made. Things went pretty well for a while; that is until the 1920s came to a roaring end with the Fantastic Depression. A third of yucky domestic product was lost and the unemployment rate was 13 per cent when the Second World War broke out.

– Prof. Bernanke is pretty harsh on the Fed’s role in the Depression. The Fed was taken by “liquidationist theory,” which held that the only way out of a downturn was to purge the economy of “extremes.” That kept the Fed from fulfilling its responsibility as lender of last resort. The U.S.’s gold standard didn’t help matters, either. “When you see a 10-per-cent decline in the price level, you know that monetary policy is too tight,” Prof. Bernanke says. But the Fed was worried about a speculative attack on the dollar, so policy makers raised interest rates. “That was the incorrect thing to do,” Prof. Bernanke says.

– To sum up, the Fed “failed” to deliver on its two primary missions: price stability (it allowed deflation) and as lender of last resort. (It refused to lend.) “We want to keep this in mind as we consider how the Fed responded to the 2009 crisis,” Prof. Bernanke says.

Questions?

One kid wanted to know why, if it’s such a disaster, there still is so much talk of a gold standard? Prof. Bernanke says supporters of the gold standard judge paper money is inherently inflationary, which he concedes is right over a long time horizon, but untrue year to year. Gold bugs also judge that central banks shouldn’t have the flexibility to adjust monetary policy. Prof. Bernanke, er, disagrees with both these arguments. He says there isn’t enough gold in circulation to maintain a gold standard. Also, the world has become too intricate, he says.

Another kid questioned about the lessons the Fantastic Depression held for the current recovery. Prof. Bernanke notes that the Depression really was two recessions. He said many historians reckon the second recession was caused by the Fed raising interest rates too soon. “If you accept that, you need to be attentive of where the economy is, and not go too quickly to reverse policies,” Prof. Bernanke says. (Note to self: That sounds vital.)

“Thanks. This has been fantastic. I’ll be back on Thursday.”

Article source: http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/what-i-learned-from-professor-bernanke/article2375758/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Report%20On%20Business&utm_content=2375758

The shell company set up to carry out Sweden’s secret plans to build a weapons factory in Saudi Arabia was financed with cash borrowed from the country’s military intelligence agency, according to a new report.

• Criminal probe into ‘secret’ Saudi arms plant (22 Mar 12)
• Saudis toured ‘top secret’ Swedish army bunker (21 Mar 12)
• Secret documents reveal further arms cooperation (20 Mar 12)

The company, Swedish Security Technology and Innovation (SSTI), was reportedly set up by the Swedish Defence Research Agency (Totalfrsvarets forskningsinstitut FOI) in order to oversee the construction of a factory for the maintenance and upgrade of anti-tank missile systems.

In order to keep the company secret, FOI needed cash in order to set it up, according to Svergies Radio (SR), which first reported on the secret plans for the Saudi weapons plant earlier this month.

Though, FOI was unable to procure the necessary cash on its own, but instead had to rely on help from the Swedish Military Intelligence and Security Service (Militra underrttelse- och skerhetstjnsten MUST).

MUST provided the cash to FOI in the form of a loan, according to SR.

Swedish Armed Forces (Frsvarsmakten) spokesperson Erik Lagersten confirmed for the radio station that money was transferred to FOI, but claims that MUST didn’t know that the funds were to be used to set up the shell company.

“That’s something for the preliminary investigation to reveal,” he told SR, referring to the preliminary criminal investigation launched by prosecutors last week in order to establish whether the secret Saudi weapons deal may have violated the law.

FOIs own investigation has revealed information leading the agency to judge there are suspicions that a crime may have been committed, it said in a statement, prompting FOI head Jan-Olof Lind to report the incident to prosecutors.

As FOI is a state agency, it isn’t allowed to start any companies without the approval of the government something which, according to SR, did not occur in the case of SSTI, which was started in 2009.

The company was launched as part of what is referred to in confidential documents reviewed by SR as Project Simoom, a project started by FOI in 2007 with the aim of helping build an advanced weapons plant in Saudi Arabia.

At the time of SR’s revelations, SSTI CEO Dick Strng, who is also a high ranking official at FOI, refused to divulge how the company was funded.

“I refuse to answer that question,” he told SR.

“I can’t answer it without lying.”

SR has subsequently learned, though, that SSTI was financed by FOI and that the start-up capital came in the form of a cash loan from MUST.

On Tuesday, FOI head Lind is scheduled to appear before a parliamentary committee to answer questions about his agency’s connections to SSTI and its involvements in the Saudi arms plant construction project.

TT/The Local/dl
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Article source: http://www.thelocal.se/39916/20120327/