TGIF Edition 27 Feb 2009

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NZTONIGHT

ANALYSIS

WORLD

SPORT

Jobs in infrastructure

Peter Curson: changing faces

Obama’s big budget

Aussie wins Tour of NZ

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TGIFEDITION.TV

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Auckland

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Hamilton

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Wellington

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Christchurch

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Queenstown

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Dunedin

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ISSN 1172-4153 |  Volume 2  |  Issue 27  |

|  27 February 2009

Terrorist link confirmed

on the

INSIDE

But bankers didn’t know By Ian Wishart

The tax haven bank trying to sue TGIF Edition has now conceded one of its clients was indeed a company named in an international money laundering sting and reportedly funnelling money for drug lords and terrorist group al Qa’ida. However, in affidavits provided to the High Court this week,WSBC Bank of the Cook Islands also says it was unaware of the client’s involvement, and it has co-operated fully with authorities investigating the transactions since learning that inquiries are underway. It appears bank staff were taken by surprise when TGIF Edition broke the story two weeks ago, and didn’t realise how their Dubai-based client fitted into the 2007 sting operation by the FBI, DEA, and European and Arab law enforcement agencies. While initial media attention in India, and subsequently here, centred on Letters of Credit issued by the Wall Street Banking Corporation (now WSBC), and three Indian exporters snared in the moneygo-round, no one – including it appears WSBC – recognised that the “Naresh Jain” mentioned in international news reports as a money launderer assisting Osama bin Laden’s al Qa’ida, was in fact the owner of a company that had been a WSBC client since 2001. That company, Kumar Trading Co LLC, was named in US court records as we confirmed last week in a money laundering case. In our interview with WSBC’s Riaz Patel, he initially rejected our allegations that his bank had dodgy clients with terrorist connections, stating that the bank definitely knew its customers. “You mentioned Jet King [owned by Naresh Jain’s brother] and other people having links to Al Qa’ida, first of all I don’t believe that we were

VOLCANO GOLDMINE

Undersea treasure hunt   Page 4

MYSTERY CRASH

What happened?   Page 8 DEA and FBI agents seized US$5.6 million from US banks belonging to a drugs and terror money launderer whose company was also a long term client of WSBC Bank.

involved in any way shape or form directly with clients you are referring to. I’m saying that the person who has an account with us, that person is checked out and has been a long-standing client of the bank.” The problem, as Patel now admits in his affidavit in the High Court, is that Kumar Trading had initially been “checked out” in 2001 when no one realised it was a money laundering front, and had therefore been a trusted “long standing client of

Big storm rolling in Auckland, Feb 27 – The top half of the North Island has been warned to prepare for power cuts, gale-force winds and heavy rain this weekend as a deepening low moves south. Power company Vector said the heavy rain and strong gusty winds could bring power cuts to Wellsford,Warkworth and Whangaparaoa to the north of Auckland,Waiheke and Clevedon, South Auckland. Vector external communications manager Philippa White said extra field crews have been

rostered on over the weekend, and where power was cut by trees or debris falling on powerlines, power would be restored as soon as possible. She urged people to stay away from fallen power lines and treat them as live all the time. People who ventured out during a storm should watch for falling trees, which could bring down powerlines. People should also reduce the risk of damage to electrical appliances by turning them off at the

the bank” for six years until the FBI busted the operation in early 2007. TGIF Edition will also be presenting evidence if the case goes to trial that senior WSBC personnel met with the Kothari brothers in Dubai, whose company Supama was also named and convicted in the same organised crime money laundering court case from New York that’s sprung Naresh Jain and Kumar Trading. Additionally, the Serious Fraud Office section wall if the power went off so they were not damaged when power was restored. Auckland civil defence warned people in the top half of the North Island it could be a wild and wet weekend. People should have a torch and batteries handy and have at least one telephone which did not rely on mains power. They should also have an alternative cooking method such as a gas barbecue. Those relying on medical equipment which ran on power should be prepared for a power cut. If there was an immediate threat to life they should

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BIG MAC

Fleetwood reunites   Page 14 Continue reading

call their health provider or the 111 emergency service. Police also warned people to study the weather forecast before travelling. Heavy rain and wind gusts of up to 70kmh were expected in some areas around Auckland and Northland tonight and tomorrow as the low moved over the top of the North Island and headed south. The MetService said the low would develop into a “significant weather system”and bring widespread rain and gale force east to northeast winds to the North Island and to the north and east of the South Island. – NZPA


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