Sunday, February 27, 2011

Secrets of Egypt / Israel Natural Gas Treaty ... An Insight Into the Art of Looting Egypt

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The Art of Looting Egypt

The official UAE  News Agency has reported that Hussein Salem, currently in Geneva Switzerland, had left Cairo on board of a private business jet headed first to   Dubai,  where he stopped to refuel on his way to Switzerland … This, however, does not make any sense.  A jet makes as much sense flying to Switzerland from Cairo via Dubai to refuel as a space shuttle flying to the moon by penetrating the Earth because the moon is on the other side of the planet.

The Dubai information, which was circulated in all the UAE Dailies,  explained that customs officials at Dubai airport searched the 24 seat private jet and discovered a huge Electronically controlled safe containing a large amount of foreign exchange valued at one and a half billion U.S. dollars.

They added that the safe that can only be opened with a voice acoustic-print contained US Treasury bills in the $100,000 denomination. Each bundle containing 100 certificates making the value of each bundle 30 million US dollars.

It is worth noting that US Treasury certificates, much like convertible Currency, are valid for circulation in all banks and financial institutions of the world and are negotiable upon demand and presentation. The certificates, much like currency are non-traceable because their serial numbers are not registered upon change of hands.

All US news sources ridiculed the instructions claimed to have been issued by the Government of the UAE civil aviation authorities at various national airports required the inspection of all aircrafts belonging to Egyptian and Tunisian prominent personalities, fearing for smuggling money or gold bars, as did the family of Tunisian deposed President Zine El Abidine Ben Ali.

All US news media, ABC, CBS, NBC and Fox noted that once Mr. Salem’s Private jet landed at the airport, a privately operated truck (Lorry) approached the airport runway in preparation for the transfer of the safe internally. It appears, Mr. Salem had intended to stay in Dubai, noting that he was politely requested to leave after negotiations with the UAE authorities and depositing a large portion of the cash in local banks under undeclared names.

Both US and UAE newspapers revealed that customs officers had notified the appropriate authorities in the UAE, of the discovery of the huge stash of money before aviation authorities permitted the plane to refuel and resume flight to any destination of Mr. Salem’s choice. The Jet headed for Switzerland. It appeared that after a telephone call between persons on the highest executive levels in both Egypt and UAE, an order was issued to allow Mr. Salem to leave for Switzerland after depositing a large portion of the cache in Dubai while the balance stayed in the safe aboard the executive jet.

Analysts of current affairs on NBC have described this action having been decided after high level communication with Egyptian executive offices and highest military and general intelligence officers. The analysts went as far as asserting that Mr. Salem was merely a carrier and the stash of money smuggled out of Egypt in this manner could not have been his alone. It is evident that someone at the highest possible executive level in Egypt was sending Mr. Salem to deposit the money in a Dubai Bank account and officers on the highest intelligence levels in Egypt were following closely with instructions to their UAE counterparts.

While ABC stopped at this point, CBS through their DC bureau chief said Egypt's military and General intelligence were all the way deep in this. CBS bureau chief further commented that sources in State, on condition of anonymity, had told him that the smuggled stash of money was allowed to be smuggled under Egypt's military intelligence care for a handsome largess paid in advance and arranged by one Larry Silverstein; a prominent US lawyer managing the Mubarak's family fortune abroad.

On a different note, the Dubai sources have learnt that Sheikh Sultan’s decision to deny prominent Egyptians fleeing to the emirates entry into the land was behind suspending the Cairo to Sharjah Air-Route which, the sources said, the Governor of Sharjah requested for tightening up the measures set forth to prevent any smuggling operations expected by corrupt officials and business men close to the regime of President Hosni Mubarak.

The sources expressed their surprise at the inexplicable modification that Egypt Air has made to its air route Cairo – Dubai where, now, their planes head first to land in Tripoli and Benghazi in Libya before taking off again to Dubai. Dubai sources have interpreted this change in the context that somebody in the highest national executive level has ordered Egypt airlines to operate unexplained flights to unknown destinations for not well understood reasons.

Of note, the discovery of the secret addendum to the natural Gas treaty has confirmed what had always been suspected. There was an undisclosed deal to  legitimize  profiteering off of vital export which touches people's bread and butter.  The deposed dictator and his  corrupt inner circle of thieving cronies dipped their hands in the pockets of every man, woman and child in Egypt.

The addendum, now a public document, revealed that the ousted dictator had ordered his close crony Samih Fahhmy;  minister of oil, to preclude any public sector operative from  Egypt's natural gas export, and establish a privately owned holding company (EGAS) to be the exclusive trader in Egyptian Natural Gas internally and externally.

Salem, an old crony of the Mubaraks with criminal records both in the United States and France was handed the sweetheart deal as Principle Owner/CEO of an Export holding company to buy Egypt's Natural Gas from EGAS and resell it to Israel.  

With a 68% ownership, he became the sole charge' and agent for exporting natural gas to Israel. The treaty also named him sole Egyptian agent to oversee the transactions of deliveries and payments of all export operations with Israel.... The Details have revealed that this was a conspiracy to legalize the Loot in the form of obscene commissions)

Salem took in an Israeli partner, a former MOSSAD agent by the name of Yusuf Maiman whose company, Merhaf, was agent for the Israeli government; ostensibly, corruption was on both sides of the borders, which, is not surprising given the enormous and obscene opportunity for  criminal profiteering through skimming off the top.

The treaty, though signed by Samih Fahhmy in the presence of Prime Minister Nazhif; another serpent head for corruption, representing the Egyptian government, is empowering and granting permits for the franchise of exporting Egypt's Natural Gas to Salem's holding company and an Israeli import company represented by Salem's Partner. The treaty does not name the sales price to Mr. Salem's  and regulates the actual export transaction prices at a markup that had been kept secret.

The treaty defines the price using BTU as cost per million. The price is fixed for 30 years at $1.5 per Million BTU (1.5 Dollars US.) The treaty has many formidable clauses prohibiting the Egyptian Government from effecting any changes in terms, prices, details or conditions of all transactions under any circumstances for its entire duration of 30 years (15 years subject to renewal for 15 more by the buyer at buyer's discretion and at the same terms and conditions.) However, it allows for periodic reviews of the resale prices by the Salem / Maiman Company to Israel, thereby guaranteeing future exorbitant profiteering at Egypt's expenses.

The Million BTU cost per, had been determined based on a previous formula for the Egypt/Spain Natural Gas Export treaty, which had since been cancelled for reasons both technical and economic. The prices for the defunct Spanish Treaty, however, had been determined on FOB basis at a time where natural Gas prices were less than one fifth of the market prices at the time of signing the treaty with Israel.

It is crucial to remember that the treaty spells out the cost at which Mr. Salem and his Israeli Partner sell the gas to Israel, and does not touch in any manner whatsoever the price at which, they purchase it from Egypt. A fact that had been kept secret until the documents were made public.  The Charlatan partners purchase the product from Egypt for 70 cents ($0.7 US)

This translates into the fact that Mr. Salem purchases the commodity from the Egyptian Government at a very low price (Less than one fifth of Market prices at the time of signing the treaty) then resells it to Israel at more than 100% markup but still way below world market prices so that his partner makes a profit too on commission from the Israeli government.

This 100% markup makes for obscene profiteering. In 2008, the Salem / Maiman holding company exercised its price review prerogative and raised the selling price to Israel two fold to $3.00 per million BTU.

This cannot have any definition other than Looting the bread of the people. Israel admits that the treaty saves its treasury over $10 Billion US Dollars  as a result of the extremely favorable terms.  Egyptian treasury, on the other hand, looses $4 billion  after all illegal commissions and theft have been deducted out of the $10 Billion  price difference losses. 

This amount of loss is based  on current price difference ratio, but can go as high as anyone can imagine, depending on how high Oil prices will increase. The markup however raises the Specter of inconceivable degree of corruption and criminal profiteering at the highest executive level in Egypt.

This is an astounding revelation! A Nation with one fifth of its total population is estimated to live below poverty line. The same nation has a criminal, almost subhuman, president living a life that the Russian Czar could not have dreamt. His entourage is comprised of characters out of a Bolshevik Tatar tales of highway men and robbers sucking the treasury dry in broad day light, and protected by custom made laws that provided total immunity from public lynching given the magnitude of the crimes they committed.

Out of the markup, Salem gets 10% of the Total Sales, Which boils down to approximately (30% of the Total Profits.) Gamal Mubarak Gets 5% of the Total Sales, and Alaa Mubarak gets 2.5% of the Total sales. The remainder can be easily speculated to be shared  by unnamed  Mubarak's family members and Minister of Petroleum Samih Fahhmy.

While  reliable State Security wire tappings confirm all this almost verbatim, the mathematics do not add up, and the wire tapping is cleansed of any mention of the Mubarak the father and the mother. 

Note that the commissions are based on Total transactions amounts not price mark up, and are skimmed off the hidden markup in the selling price. The body of the treaty is silent on this issue, but the commissions were explained in the  addendum and deducted from receipts before going to the treasury.

Ostensibly, their legal experts advised this method of theft for the  percentages diverted to the crooks to be defined as revenues deducted from the Total Sales and is  covered by the obscene 100%  (400% After 2008) markup. While the addendum refers only to guaranteed prices to Israel.  Other terms and conditions, clearly defined, had to be entered into the document with the agreement of the Israeli government.

The question now is not who the main beneficiary of this sweetheart deal is? We know who the main beneficiary is because all the evidences that have been revealed point out only to three persons at the highest echelon of the Egyptian president's family. 

Undoubtedly the Mubarak’s family was making a large portion of its Loot of Egypt out of this treaty by splitting the obscene profits between active and passive mafia members. 

Mubarak the Mother is also linked to another  great theft of Egypt's treasures. This time, it is ancient antiquities. Charges are being investigated for her theft of $2 Billion US Dollars of ancient artifacts sold to an Arab Bedouin Shaikh.

The fact that only the two Mubarak's sons + Hussein Salem are the only beneficiaries mentioned in the Addendum should not preclude Mubarak the Father and the Mother, as well as Minister of Petroleum Samih Fahhmy. They must have also been recipients of the unnamed remainder of the Loot ... Mathematics do not lie!

Mr. Salem is known to have accumulated Billions of Dollars out of this grand theft and racketeering on only 30% of the profits. The two younger Mubarak's also receive 7.5% between them (25% of the profits). It does not take rocket-science caliber of brain power to figure out that the two elder Mubaraks along with Samih Fahhmy were sharing (45% of the profits.)

It is worth noting that Mr. Salem, by presidential decree, had  no government oversight over his operations and reported only to both Mr. Mubarak the father and the son.

Sensing something in the air, Hussein Salem sold his interest in the company to a Thailand concern for an untold price.  Auspiciously, the Israeli partner, following Mr. Salem's  elope with the Loot, sold all his interest in his company to the Israeli government. Nobody knows his whereabouts now.

Most surprising is the silence with which the Military Supreme Council has dealt with this revelation. Obviously there are experienced lawyers who have reviewed the treaty and its addendum for legal advice. It would not be problematic for Egypt, now that the extent of conspiracy has seen day light, to put an end to the corruption and cancel the treaty. But more likely, modifying prices to match world market prices appear to be a better legal option for Egypt.

But no matter what the outcome will be, the Israelis cannot count on getting the Egyptian natural gas, if resumed, any cheaper than market prices. Given Egypt's increasing needs of the commodity, it is doubtful that the Israelis would be given priority over local needs. The Surplus would be the only portion subject to export to the Zionist Entity.

Meanwhile, The Deposed dictator's thieving family who is believed to have made at least $40 Billion US Dollars  over the past 30 years out of Looting Egyptian Children's bread, including  the natural gas racket, may have smuggled every penny of their Loot out of Egypt.

Only time will tell whether Egypt the Revolution will be able to recover the Looted Bread  that the Old Crone, Her Mummified Husband and their Two Diapered Nannooses have snatched out of the mouths of Egypt's Hungry Children.