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Crown Prince Mohammed reform: Saudi Arabia attacks high level corruption

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Saudi Arabia, the birthplace as well as spiritual home of Islam, has been in news in recent years as it makes strenuous efforts to enhance its global profile as a leader of (Sunni) Islamic world. It managed the Arab Spring so well that though the phenomenon had struck entire Arab world, starting from Tunisia, just passed by that nation without making any real impact on the Saudi life and politics.

However, Saudi government and the king himself were in anxiety and despair until the “spring” died down.

The fact that Saudi Arabians and royal families are corrupt like other materialistic countries has shocked the world as they thought Saudi Arabia, the birthplace of holy Prophet of Islam, was free from bribery and corruption and Saudi kingdom is a nation of honest people.   

Corruption is rampant in Saudi Arabia and other Gulf states. The ruling classes and their allies, close relatives are engaged in wealth creation activities by engaging themselves in corrupt practices.

As the first ever Arab leader Saudi king Salman bins Abdulaziz Al Saud, through his son Crown Prince Mohammad, is now seen taking bold steps to cleanse the Saudi system off corruption and give Islamic laws due place in the system that would g a long way streamlining the Islamic governance in Islamic world beyond Arab nations.

All of a sudden Saudi government under Crown Prince Mohammad decided to check growth of corruption in the Islamic nation, found even many of the royal families within the government corrupt, arrested and put them in jail.  According to initial report, at least 11 princes, four current ministers and several former ministers had been detained in the anti-corruption probe.

Saudi Arabia’s Crown Prince Salman has dismissed a number of senior ministers and detained nearly a dozen princes in an investigation by a new anti-corruption committee on Saturday. Prince Alwaleed bin Talal, a billionaire businessman who owns investment firm Kingdom Holding, was among those held. The senior ministers who were sacked include Prince Mitaab bin Abdullah, the head of the National Guard.

Those involved in  the historic corruption scandal of Saudi kingdom include: Alwaleed bin Talal, owner of Kingdom Holding group; Prince Mitaab bin Abdullah, minister of the National Guard; Prince Turki bin Abdullah, former governor of Riyadh ; Prince Turki bin Nasser, former head of meteorology, environment; Waleed al-Ibrahim, chairman of MBC media group; Khaled al-Tuwaijri, former president of the Royal Court; Adel Faqih, minister of economy and planning; Amr al-Dabbagh, former president of the General Investment Authority; Saleh Abdullah Kamel, chairman of Dallah al Baraka Group; Saud al-Tobaishi, head of Royal ceremonies and protocols; Ibrahim al-Assaf, state minister and executive of Saudi Aramco; Bakr Binladin, owner of construction company Saudi Binladin Group; Saud al-Dawish, former CEO of Saudi Telecom Company; Khaled al-Mulhem, former director general of Saudi Arabian Airlines.

In a statement Salman alluded to the “exploitation by some of the weak souls” who have put their own interests above the public interest, in order to, illicitly, accrue money” for the creation of the anti-graft committee.

The detentions follow a crackdown in September on political opponents of Saudi Arabia’s rulers that saw some 30 clerics, intellectuals and activists detained. Prince Alwaleed, a flamboyant character, has sometimes used his prominence as an investor to aim barbs at the kingdom’s rulers. In December 2015, he called then-US presidential candidate Donald Trump a “disgrace to all America” and demanded on Twitter that he withdraw from the election.

The arrested officials are believed to be being housed in the five-star Ritz Carlton Hotel, which two weeks ago held a high-profile investment summit under the auspices of Prince Mohammed. The convention centre next door was used to receive Donald Trump in May, when the US president travelled to Saudi Arabia to reset relations with his country’s long-term ally, which had deteriorated under the Obama administration that had pivoted to Iran.

Saudis really are on the brink of dramatic changes.  In 2015, Mohammed bin Salman became minster of defence. Just a few months ago, he became the head of all the internal security forces because they got rid of the Mohammed bin Nayef, then crown prince. Now he’s taken control of the third most important security apparatus within the country, so he has defence, he is in control of interior and now he is in control of the guards.

Clearly he has the stage set. Clearly all the heads of all the major media networks, newspapers, and commentators were all already groomed, set in motion in order to defend the crown prince and his policies. There are already new songs for the crown prince and his glory, so internally they are definitely setting the stage in terms of the three security apparatuses, the media and so on.

President Trump has given his blessings and support to the crown prince Mohammad with the hundreds of billions of dollars of promised contracts, so he’s certainly supporting his various ambitions in the region, most importantly that of the confrontation with Iran in the region. This is something that Trump really wants as well as apparently a promised rapprochement with Israel.

Rise of Saudi Arabia

Saudi Arabia houses the holiest Mosques of Islam. As the motherland of Islam, Saudi Arabia was a poor nation until oil was discovered last century.  

Saudi Arabia is geographically the fifth-largest state in Asia and second-largest state in the Arab world after Algeria. Saudi Arabia is bordered by Jordan and Iraq to the north, Kuwait to the northeast, Qatar, Bahrain and the United Arab Emirates to the east, Oman to the southeast and Yemen to the south. It is separated from Israel and Egypt by the Gulf of Aqaba. It is the only nation with both a Red Sea coast and a Persian Gulf coast and most of its terrain consists of arid desert and mountains.

Discovery of oil greatly enhanced the economic and financial prowess of Saudi kingdom. Petroleum was discovered on 3 March 1938 and followed up by several other finds in the Eastern Province. Saudi Arabia has since become the world’s largest oil producer and exporter, controlling the world’s second largest oil reserves and the sixth largest gas reserves. The kingdom is categorized as a World Bank high-income economy with a high Human Development Index and is the only Arab country to be part of the G-20 major economies. However, the economy of Saudi Arabia is the least diversified in the Gulf Cooperation Council, lacking any significant service or production sector, apart from the extraction of resources.

Saudi Arabia is heavily dependent on oil for income and has been suffering since oil prices crashed from more than $100 a barrel in 2014. The kingdom has been desperately trying to diversify its economy away from the commodity, but is still focused on trying to raise oil values and restore its main income source. Saudi Arabia’s risky plot to raise oil prices to save its economy has failed sending the country into crisis. The kingdom tried to manipulate prices by slashing output to increase demand, but the plan backfired as US shale producers continued to pump more oil. Prices have fallen as low as $43 a barrel and remained well below $50 since the end of May when OPEC announced its plans to tackle oversupply. OPEC members Libya and Nigeria were previously exempt from the cap announced in May, but desperate OPEC and Saudi could now pressure the two countries to comply in the hope of denting supply. Russia has already called on OPEC to cap output from Nigeria and Libya in the near future and it will be interesting to see if any new agreements are proposed for both nations to join the oil production cut agreement. 

Among the challenges to Saudi economy include halting or reversing the decline in per capita income, improving education to prepare youth for the workforce and providing them with employment, diversifying the economy, stimulating the private sector and housing construction, diminishing corruption and inequality.

In addition to petroleum and gas, Saudi also has a small gold mining sector in the Mahd adh Dhahab region and other mineral industries, an agricultural sector, especially in the southwest, based on dates and livestock, and large number of temporary jobs created by the roughly two million annual Hajj pilgrims. Virtually all Saudi citizens are Muslim (officially, all are), and almost all Saudi residents are Muslim. Estimates of the Sunni population of Saudi Arabia range between 75% and 90%, with the remaining 10–25% being Shia Muslim. The official and dominant form of Sunni Islam in Saudi Arabia is commonly known as Wahhabism.

According to estimates there are about 1,500,000 Christians in Saudi Arabia, almost all foreign workers. Saudi Arabia allows Christians to enter the country as foreign workers for temporary work. Americans enjoy special status in Saudi as they are not punished there for their crimes and there could be some CIA agents too among them. In 1980, Saudi Arabia bought out the American interests in Aramco.

Saudi Arabia’s command economy is petroleum-based; roughly 75% of budget revenues and 90% of export earnings come from the oil industry. Saudi Arabia officially has about 260 billion barrels of oil reserves, comprising about one-fifth of the world’s proven total petroleum reserves It is strongly dependent on foreign workers with about 80% of those employed in the private sector being non-Saudi.

Saudi Arabia is called in the West as a monarchical autocracy.  Saudi Arabia is considered a regional and middle power.  Saudi Arabia was the world’s second largest arms importer in 2010–2014. By 1976, Saudi Arabia had become the largest oil producer in the world. King Khalid’s reign saw economic and social development progress at an extremely rapid rate, transforming the infrastructure and educational system of the country; in foreign policy, close ties with the USA were developed.

In 1979, two events occurred which greatly concerned the government, and had a long-term influence on Saudi foreign and domestic policy. The first was the Iranian Islamic Revolution. It was feared that the country’s Shi’ite minority in the Eastern Province which is also the location of the oil fields might rebel under the influence of their Iranian co-religionists. There were several anti-government uprisings in the region such as the 1979 Qatif Uprising. The second event was the Grand Mosque Seizure in Mecca by Islamist extremists. The militants involved were in part angered by what they considered to be the corruption and un-Islamic nature of the Saudi government. The government regained control of the mosque after 10 days and those captured were executed. Part of the response of the royal family was to enforce a much stricter observance of traditional religious and social norms in the country (for example, the closure of cinemas) and to give the Ulema a greater role in government. Neither entirely succeeded as Islamism continued to grow in strength. 

This partly explains why Saudi kingdom is touchy of Sunni branch of Islam and opposes Iran, accusing it of fomenting troubles in Sunni nations. .

King Khalid died of a heart attack in June 1982. He was succeeded by his brother, King Fahd, who added the title “Custodian of the Two Holy Mosques” to his name in 1986 in response to considerable fundamentalist pressure to avoid use of “majesty” in association with anything except God. Fahd continued to develop close relations with the USA and increased the purchase of American and British military equipment. Saudi used a good part of its income from oil sales on terror goods from USA, UK and other western countries.

As the USA began pushing its own religious and capitalist agenda in the nation of Islam, many Saudis opposed Washington and Saudi Arabia’s relations with the West began to cause growing concern among some of the ulema and students of sharia law and was one of the issues that led to an increase in Islamist terrorism in Saudi Arabia, as well as Islamist terrorist attacks in Western countries

The vast wealth generated by oil revenues was beginning to have an even greater impact on Saudi society. It led to rapid technological modernisation, urbanization, mass public education and the creation of new media. This and the presence of increasingly large numbers of foreign workers greatly affected traditional Saudi norms and values. Although there was dramatic change in the social and economic life of the country, political power continued to be monopolized by the royal family leading to discontent among many Saudis who began to look for wider participation in government

In the 1980s, Saudi Arabia spent $25 billion in support of Saddam Hussein in the Iran–Iraq War. However, Saudi Arabia condemned the Iraqi invasion of Kuwait in 1990 and asked the US to intervene.[55] King Fahd allowed American and coalition troops to be stationed in Saudi Arabia.

Hidden economy and rampant corruption

Oil made many poor Arabs rich and billionaires in a few years and they also began looting the nation’s resources by all possible means. In fact, Saudi is  no difference from other corrupt nations like India, Pakistan or USA or UK.

Arabs make huge sums and wealth, both legitimate and illegal. The line between public funds and royal money is not always clear in Saudi Arabia, an absolute monarchy ruled by an Islamic system in which most law is not systematically codified and no elected parliament exists. WikiLeaks cables have detailed the huge monthly stipends that every Saudi royal receives as well as various money-making schemes some have used to finance lavish lifestyles.

Most of rich Arabs keep their wealth in USA and UK. Trump responded in typically combative terms accusing the prince of wanting to control “our politicians with daddy’s money”. Trump tweeted: “Dopey Prince Alwaleed_ Talal wants to control our US politicians with daddy’s money. His father, Prince Talal, is considered one of the most vocal supporters of reform in the ruling Al Saud family, having pressed for a constitutional monarchy decades ago”. Al-Waleed had in fact recently promised to donate all his wealth to charity – although he had years earlier purchased a yacht from Trump, and according to Forbes’s profiles, shares the president’s predilection for mocked-up Time magazine covers apparently featuring his exploits.

Prince Al-Waleed a grandson of Saudi’s first ruler and son of a Saudi finance minister, has an estimated net worth of $17bn (£13bn), although he has used them for underestimating his own wealth. He came to prominence internationally as a major backer of Citigroup in the 1990s, and more so when continuing to back the firm as its value evaporated during the financial crisis. His investments extended into major media groups, with substantial stakes in Rupert Murdoch’s NewsCorp, Apple, Time Warner, Twitter, and owning Rotana, whose TV channels broadcast widely across the Arab-speaking world.  He has reduced his share in NewsCorp, but his clout was such that an intervention in 2011 in the wake of the phone-hacking scandal was seen as the coup de grace for News International’s Rebekah Brooks, telling the Murdochs from his superyacht in Cannes that “she has to go”.

The investment group he set up in 1980, rebranded as the Kingdom Holding Company in 1996, also owns several global luxury hotel chains, as well as landmark properties such as London’s Savoy Hotel and the George V in Paris. More recently it has backed Uber’s rival ride-hailing firm Lyft. On Twitter in 2015 he called Donald Trump a “disgrace to America” after the Republican candidate floated the idea of a ban on Muslims, and he urged Trump to quit the campaign.

Prince Al-Waleed was an early advocate of women’s employment in Saudi Arabia – hiring a female pilot for his jets, at a time when there was no prospect of women driving on the ground, and speaking out against the driving ban before the regime agreed this year to lift it. His wife, Ameera, who he divorced in 2013, usually appeared unveiled.

Al-Waleed’s international profile was extraordinary – frequently seen with top politicians, Wall Street executives and British royals. But he was an unofficial public face of the Saudi kingdom rather than a key part of the ruling elite – a status underlined by his arrest in King Salman’s crackdown.

In a 2013 court case in London, a judge said that Prince Al-Waleed’s evidence in the witness box was “confusing and too unreliable” as he was forced to pay out in a business dispute. And while the prince already owns a Boeing 747 for his personal use, complete with throne, his ambition to have the world’s biggest superjumbo, the A380, refitted with a concert hall, Turkish baths, luxury suites and a parking bay for his Rolls Royce, remains unfulfilled. Despite placing an order with manufacturer Airbus in 2007 at the Dubai airshow, the plane remains on the tarmac in Toulouse to this day.

Hidden economies promote corruption more than the open ones. Transparency deficit automatically causes corruption on a large scale as it had happened in Russia and now happening in China, India, Pakistan, Bangladesh, Nepal, Bhutan etc are ordinary third world countries without any definition of good governance and so corruption is the order of the system in these countries. 

The regime and system promote and encourage corruption as a state policy.  

Now Arab government seriously considers multi-pronged approach to diversify its economy from oil into other fields of economy, including industries, agriculture, services, military equipment production, modernization, etc.

The highest profile arrest in Saudi Arabia’s anti-corruption purge is Prince Al-Waleed bin Talal, a multibillionaire with huge investments in western firms.  Prince Al-Waleed, 62 and one of the world’s richest men, has become one of the most familiar – and progressive – faces of Saudi in western media. While he has the lifestyle, jets, yacht and palace of a stereotypical Saudi billionaire, he has burnished a different image with interventions such as backing rights for Saudi women and denouncing President Trump on Twitter.

Arab leaders do not distinguish between their wealth and state wealth as they loot national resources  for private use.

Anti-corruption probe and purge for accelerated change

Earlier, former British PM Tony Blaire had to resign for serious charges, including ones related to bribery scandals involving top Saudi officals and ministers. But the issue was never raised in Saudi Arabia or Arab world. Saudi government and king himself were keen not to publicize the corruption sandals of their ministers or officals because that would bring bad name for the nation with Holy sites. But the king or government did  not purse anti-corruption drive to cleanse the system and  present a positive image of  Saudi Arabia. 

Now for the first time in modern Arabian history a King, namely Salman has ventured to contain corruption prevalent in Saudi life by his launch of the anti-corruption drive and catching the top culprits in the royal dynasty itself red handed. Well done.

Saudi Arabia’s King Salman has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom’s most prominent businessmen. Prince Alwaleed, a nephew of the king and owner of investment firm Kingdom Holding, invests in firms such as Citigroup and Twitter. He was among 11 princes, four ministers and tens of former ministers detained.

The purge against the kingdom’s political and business elite also targeted the head of the National Guard Prince Miteb bin Abdullah who was detained and replaced as minister of the powerful National Guard by Prince Khaled bin Ayyaf. News of the purge came after King Salman decreed the creation of an anti-corruption committee chaired by Crown Prince Mohammed bin Salman, his 32-year-old favourite son who has amassed power since rising from obscurity three years ago.

The new anti-corruption body was given broad powers to investigate cases, issue arrest warrants and travel restrictions, and seize assets. “The homeland will not exist unless corruption is uprooted and the corrupt are held accountable,” the royal decree said.

King Salman issued a statement saying that the committee shall “identify offences, crimes and persons and entities involved in cases of public corruption”. The committee has the power to issue arrest warrants, travel bans, disclose and freeze accounts and portfolios, track funds and assets, and “prevent their remittance or transfer by persons and entities, whatever they might be”, according to the statement.

The shake-up of the Saudi government comes just months after King Salman replaced his nephew Mohammed bin Nayef with his son Mohammed bin Salman as the kingdom’s crown prince. Mohammed bin Salman has been responsible for pushing through a number of changes both at home and abroad since he became first in line to the Saudi crown. Ian Black of the London School of Economics said the move fit a “pattern of accelerated change” since Mohammed bin Salman became heir. “We’ve seen since June this year, very far-reaching changes,” he said, adding: “That was when Mohammed bin Salman, the son of King Salman, was appointed crown prince.”Since Mohammed bin Salman became the crown prince in June, we’ve seen a lot of upheaval. We’ve seen the announcement of this very ambitious Saudi plan to transform the country the Saudi economy, Vision 2030.”

The dismissal of Mitaab bin Abdullah as National Guard minister came shortly after a missile attack by Yemen’s Houthi rebels on Riyadh’s King Khaled International Airport. However, Black said the two were probably not related as the sacking came bundled with changes to other ministerial portfolios.

In recent weeks, Saudi Arabia has announced an end to its long-standing ban on allowing women to drive, and Mohammed bin Salman has also promised to return the country to a “moderate” form of Islam. Since 2015 Saudi Arabia has been at war against Houthi rebels, who control much of northern Yemen on the kingdom’s southern border.

It is not clear if the Trump visit emboldened the kingdom, which has been locked in a decades-long tussle with Iran for power and influence across the region. Since then, a swath of economic policies has been launched, along with cultural reforms unprecedented in Saudi history. By mid next year, women are expected to be allowed to drive, to enter sports stadiums and travel abroad without the endorsement of their male guardians.

It is also said the arrests were another pre-emptive measure by the crown prince to remove powerful figures as he exerts control over the world’s leading oil exporter. The round-up recalls the palace coup in June through which he ousted his elder cousin, Mohammed bin Nayef, as heir to the throne and interior minister. MbS, as he is known, was expected to follow at least by removing Prince Miteb from leadership of the National Guard, a pivotal power-base rooted in the kingdom’s tribes. Over the past year MbS has become the ultimate decision-maker for the kingdom’s military, foreign, economic and social policies, causing resentment among parts of the Al Saud dynasty frustrated by his meteoric rise.

Saudi Arabia’s stock index was dragged down briefly but recovered to close higher as some investors bet the crackdown could bolster reforms in the long run. The royal decree said the arrests were in response to “exploitation by some of the weak souls who have put their own interests above the public interest, in order to, illicitly, accrue money.”

Many ordinary Saudis praised the crackdown as long-awaited.

Reforms

King Salman’s purge should be seen as a part of his reform policy.

In September, the king announced that a ban on women driving would be lifted, while Prince Mohammed is trying to break decades of conservative tradition by promoting public entertainment and visits by foreign tourists.

The crown prince has also slashed state spending in some areas and plans a big sale of state assets, including floating part of state oil giant Saudi Aramco on international markets. Prince Mohammed also led Saudi Arabia into a two-year-old war in Yemen, where the government says it is fighting Iran-aligned militants, and a row with neighbouring Qatar, which it accuses of backing terrorists, a charge Doha denies. Detractors of the crown prince say both moves are dangerous adventurism.

The most recent crackdown breaks with the tradition of consensus within the ruling family. Prince Mohammed, rather than forging alliances as the usual strategy, is extending his iron grip to the ruling family, the military, and the National Guard to counter what appears to be more widespread opposition within the family as well as the military to his reforms and the Yemen war.

In September, Prince Mohammed authorised the detention of some of the country’s most powerful clerics, fearing they may not be loyal to his agenda and supportive of his boycott of Qatar, which Saudi leaders accuse of destablising the region. The state moves on the home front followed a striking foreign policy stance earlier in the day that appeared to put the kingdom on a political collision course with Iran. Under Saudi pressure, the Lebanese prime minister, Saad al-Hariri, unexpectedly quit his job, citing Iranian interference across the Middle East. Hariri made his statement in Riyadh after twice being summoned to the Saudi capital during the week.

The attorney general, Saud al-Mojeb, said the newly mandated corruption commission had started multiple investigations. The decree establishing the commission said: “The homeland will not exist unless corruption is uprooted and the corrupt are held accountable.”  “The suspects are being granted the same rights and treatment as any other Saudi citizen,” he said. “During the investigation, all parties retain full legal privileges relating to their personal and private property, including funds.”

Prince Mohammed will oversee the corruption commission, adding to his already formidable list of responsibilities, including his role as defence minister and champion of the economic transformation, dubbed Vision 2030, that aims to revolutionize most aspects of Saudi life within 12 years. Prince Mohammed told the Guardian last month that the kingdom had been “not normal” for the past 30 years and pledged to return Saudi Arabia to moderate Islam.

According to Al Arabiya, the new committee, which is headed by Crown Prince Mohammed bin Salman, is looking into the 2009 floods that devastated parts of Jeddah, as well as the government’s response to the Middle East Respiratory Syndrome (MERS) virus outbreak.

The interests of the Al Saud would remain protected. Both King Salman and heir apparent Mohammed bin Salman are fully committed to them. What they wish to instill, and seem determined to execute, is to modernize the ruling establishment, not just for the 2030 horizon but beyond it too.

Observation: A step in the right direction

Corruption is alien to Islam. The action against corruption shocked the world- not just the Arab nations or Islamic world alone. The world is under the impression, rather illusion that as the Islamic nation Saudi Arabia would not at all allow corruption in any meaner and that Saudis as the decedents of the first ever Muslims of the world would care for projecting a positive way of thinking and living.

The evil of corruption is deep in Saudi Arabia but without any state efforts to contain and reduce corruption the malice has become large scale corrupt practices. The kingdom’s top council of clerics tweeted that anti-corruption efforts were “as important as the fight against terrorism”, essentially giving religious backing to the crackdown.

The state attack on Saudi corrupt machinery at the top level is a well thought out step to root out corruption from the land of birth of Islam and of Holy Prophet of Islam and His infallible companions.

Nearly six months into his tenure as crown prince, which will eventually see him succeed his father as monarch, Prince Mohammed has launched a dizzying series of reforms designed to transform the kingdom’s moribund economy and put the relationship between the state and its citizens on a new footing.

Saudi arrests show crown prince Mohammed bin Salman is a risk-taker with a zeal for reform but the move would enormously strengthen his place in the governance. The move strengthens Prince Mohammed’s control of the kingdom’s security institutions, which had long been headed by separate powerful branches of the ruling family.

Crown Prince is raising the leverage of power in Saudi Arabia. He certainly has the blessings of his father King Salman and he’s determined to make all kinds of changes in Saudi Arabia itself and in Saudi foreign policy, which led to the war in Yemen and the Gulf crisis. But on domestic front, this is new. Not only do we have a new chapter opening up in Saudi Arabia, we have a whole new book: it’s still all done in secrecy. Why those 11 princes, why those four standing ministers? Is it really just to consolidate power or is there more to it?

In the tradition of Saudi Arabia, revolting against the royals is not a good idea. It’s never been recommended. But does it all end with this or will it lead to more?  There have been signs over the last two and a half years that more of this is coming.

Corruption has been rampant in recent generations in Saudi Arabia and Prince Mohammed had vowed to make business dealings more transparent. The spectacle of royal family members being arrested would add weight to claims of a crackdown on graft. However, such is the manner in which business is done in the kingdom, there would be few senior figures not connected to contract deals that would be considered corrupt in many other parts of the world.

Saudi Arabia’s leadership has pulled off its boldest move yet to consolidate power around its young crown prince, Mohammed bin Salman, arresting 11 senior princes, one of the country’s richest men and scores of former ministers in what it billed as a corruption purge. The move aimed to reshape public behavior in a kingdom where patronage networks often determine business deals and prominent families secure substantial cuts from lucrative contracts.

However, some in the Saudi capital describe the move as a naked attempt to weed out dissent, and political rivals, as the ambitious heir to the throne continues to stamp his authority across most aspects of public life in Saudi Arabia.

The purge aimed to go beyond corruption and aimed to remove potential opposition to Prince Mohammed’s ambitious reform agenda which is widely popular with Saudi Arabia’s burgeoning youth population but faces resistance from some of the old guard more comfortable with the kingdom’s traditions of incremental change and rule by consensus.

Saudi Arabia, if it becomes a totally corruption free, can positively influence not only Arab world or Islamic world but even entire world of capitalism and imperialism to change for the better providing  genuine scope for redistribution of nation’s wealth on a possible perfect  principle without corruption and inflation.

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The bitter truth for mullahs’ regime in Iran

Reza Shafiee

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Ali Khamenei, Iranian regime’s supreme leader finally broke his silence and spoke on August 13th on a number of hot political issues facing the nation. He was awfully quite these days. Yet the country is boiling in dissent. Listening to his speech leaves no doubt that he is desperate. He talked about problems his regime has no clue how to tackle. On the top of the list was the recent protests in cities like Tehran, Karaj, Shiraz, Esfahan, Mashhad, Ghahdarijan, and many other cities with such slogans as “Death to Khamenei” and “Death to Dictator.” He was off balance since people in the streets had him in their crosshair.

Khamenei wasted no time and took the bull by the horns. He called his cronies “cowards” and not trustworthy at hard times. Considering the recent unrests as the extension of January protests, Khamenei once again branded the protesters as agents of foreign powers such as the United States, Israel and Saudi Arabia. He said that “they had planned for years to disrupt the country’s security in January this year, but the people came out with admirable awareness, and stopped the enemies’ years-long plans.”

He added: “The enemies then set their hearts on this (Persian) year, with some US officials saying that there’ll be some news from Iran in the next six months. They were clearly pointing to the events earlier this month which turned out to be so limited despite the enemies’ huge financial and political investments.”

Iranian citizens have pushed the regime to the edge before. The difference this time is that the regime has gone too far in putting pressure on all citizens. The gap between rich and poor is at its highest level in 40 years. It is a recipe for disaster and the top officials of the regime publicly confirmed it.

He used his admission of the guilt as a temporary band aid and admits that he made a “mistake” in the nuclear deal.  “With regard to the nuclear deal, what I did was wrong, allowing some officials’ insistence to give a shot at nuclear talks, in which our red lines were not respected,” said Khamenei, according to regime’s official news agency.

He made it clear to his power base: the Revolutionary Guards and Bassij Forces that he has no intentions of taking the risk of going to war with the US. The mullahs’ supreme leader said: “There’ll definitely be no war. In Short, I have to inform the Iranian people that there’ll be no war and we will not negotiate, either.”

The leader of theocratic regime in Iran admits the deadly state of the country’s economy. But he makes sure to leave out his own massive financial conglomerate feeding off Iran’s poor economy. There is a rough estimate that Khamenei is sitting on top of a 95 billion dollars trust found. He is not the only one; there are other sharks in the tank related to his powerhouse that are taking their lion’s share of dying Iranian market.

Khamenei in his speech pictured himself as the champion of fighting corruption. A claim hardly anyone in his right-mind would take it seriously. He said: “The main cause of such problems is not sanctions, but domestic policies. This is what many officials and experts alike have confirmed. That however doesn’t mean that the sanctions have nothing to do with this situation. Of course they do, but the main factor is rooted in our performance. Among the measures that must definitely be taken into account is fighting against corruption. This was also reflected in the letter that the reverend head of judiciary wrote to me two days ago, in response to which I underlined that the proposed measures are an important and positive step toward fighting against corruption and punishing those who are involved.”

Fighting crime has never been a priority for the regime because the top criminals are well connected individuals with strong ties to Khamenei. To make it somewhat believable the security forces targeted some small-time currency dealers in the midst of currency crisis driven by a sharp decline in the value of Rial (the official currency). Khamenei and top Revolutionary Guards know better that Iranian citizens will not easily fall for their theatrics anymore and some heads needed to roll. The first to be sacked was the head of Iran’s Central Bank, Valiollah Seif.

Alarmed by public frustration with the way economy is run in Iran, Khamenei tried in his address to pour some cold water on the matter. He promised swift actions against fat cats. But people know full well that he is not willing to clip former Revolutionary Guards turned businessmen. They are running the country in a mafia style gang.

The bitter truth for the theocratic regime in Iran is plain and simple; the people are fed up with the mullahs and the regime is no longer able to force itself on them. This is the story of all dictators toward the end and Iran is no exception.

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Trump to Netanyahu: Palestinians Must Be Completely Conquered

Eric Zuesse

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The Washington correspondent of Israel’s Haaretz newspaper, Amir Tibon, headlined on the night of Tuesday, August 14, “Trump Administration Wants to See a Gaza Cease-fire ‘With or Without the Palestinian Authority’,” and he reported that, “The Trump administration wants to see a long-term cease-fire in Gaza, with or without the support of the Palestinian Authority, a spokesperson for the White House’s National Security Council told Haaretz on Monday.”

In other words: U.S. President Donald Trump is not angling for Palestinians to become ruled by the more moderate of the two political entities that are contesting for control over Palestine — he’s not favoring The Palestinain Authority, Mahmoud Abbas, over Hamas, Ismail Haniya. He is, instead, aiming for Jews inside Israel to conquer completely the non-Jews, not only inside Israel, but also in the adjoining areas, Palestine.

Trump has now officially placed the United States on the side of Israel’s Jews, for them to conquer and subdue Palestine, for Jews to rule over Palestinians, and for the residents in Palestine not to be allowed to participate in Israel’s elections.

This will be very good for American firms such as Lockheed Martin, Northrop Grumman, Boeing, and General Dynamics, which depend wholly or primarily upon sales to the U.S. Government and to its allied governments, including Israel, for their profits and their net worths, their stock-market valuations. More war is essential for these firms, which sell only to these governments — governments which seek to control more land, regardless of what the residents there want, and which need to buy more weapons in order to do it.

Trump’s foreign policies have been very effective.

Trump’s biggest success, thus far into his Presidency, has been his sale of $400 billion (originally $350 billion) of U.S.-made weapons to the Saudi Arabian Government, which is owned by its royal family, after whom that nation is named. This sale alone is big enough to be called Trump’s “jobs plan” for Americans. It is also the biggest weapons-sale in all of history. It’s 400 billion dollars, not 400 million dollars; it is gigantic, and, by far, unprecedented in world-history. Consequently, anyone who would allege that he has been anything other than an extraordinary success for his constituency, the people who will be funding his 2020 re-election campaign, would be wrong. America is controlled by dollars, not by people; everything is geared to maximizing the return on investment, for the people who have invested in Trump. Increasing their net worths is his goal, and he has been stunningly successful at achieving it.

The individuals who control those corporations are also in control of those governments, via political corruption, such as the “revolving doors” between ‘government service’ and the private sector. If they can’t control those governments, then they can’t control their own finances. But if they do control those governments — and especially their own Government, the U.S. Government — then they control the very source of their own wealth. They are totally dependent upon the U.S. Government. Trump has, regarding U.S. military and diplomatic policies — the Pentagon and the State Department, and the intelligence agencies — been just as effective as the neoconservatives, the people who actually run both Parties on behalf of those firms, for those firms’ owners, could have hoped. This does not mean that they won’t in 2020 back an opponent of Trump, but only that Trump is issuing as many IOUs to these people as he can, and as fast as he can, and that he has been remarkably successful (unprecedented, actually) at doing that. Whereas Democrats such as Joe Biden and Eric Swalwell might contest against him for their support, no one can reasonably say that Trump has been a disappointment to the proponents of American conquest and control over the entire world — the people commonly called “neoconservatives,” and all other agents of what Dwight Eisenhower called “the military-industrial complex.” While those people might criticize him in order to push him even farther to the right on foreign affairs than he has been, he has been very effective for them, and he clearly is hoping that, at least regarding military policies, in America’s militarized economy, those people will be satisfied for him to remain in power. That’s his hope. That’s his goal. It’s shown by his actions, not by his mere words.

America’s alliance with Israel is almost as important as America’s alliance with the owners of Saudi Arabia, the Saud family. Both of those allies want the Palestinians to be conquered. And so does Trump. And, of course, so too do the people who are rotating constantly through those revolving doors, the other agents for America’s rulers.

On August 9th, as reported by Amjad Jaghi of 972 Magazine, “the Israeli Air Force bombed Al-Meshal, one of the Gaza Strip’s most important cultural facilities. They claim that the building — which comprises two theaters, three large halls, and a department serving the Egyptian community living in the Strip — was being used by Hamas.”

On August 14th, Reuters headlined “Israeli minister confirms Netanyahu met Sisi over Gaza” and reported that “The two leaders discussed the easing of an Israeli-Egyptian blockade of Gaza, rehabilitation of its infrastructure and terms for a ceasefire.” Israel said that “everything that will happen in Gaza will be done with Egyptian mediation and involvement.” This means that the setting-up of Israel’s control over Gaza will “be done with Egyptian mediation and involvement,” but the operation of Israel’s control over Gaza won’t be — it’ll be 100% Israeli.

For example, Sisi might be able to get Netanyahu to agree to increase the current, 85 truckloads of food daily into Gaza so as to raise Gazans’ food-intake above its current “subsistence” level. Although he might try, Israel’s record of violating its international agreements is even stronger than America’s record for that is. But to serve PR purposes, Sisi might try. Ever since 2007, when Israel was allowing into Gaza 106 truckloads daily, that number was reduced down to this “subsistence” level.

On 1 January 2008, was secretly issued from Israel’s Ministry of Defense, a document “Food Consumption in the Gaza Strip – Red Lines”, in which the Ministry of Health informed them that the then-current 106 trucks daily was too much for “subsistence”:

“The Ministry of Health is conducting work for calculating the minimal subsistence basket based on the Arab sector in Israel. The ‘minimum basket’ allows nutrition that is sufficient for subsistence without the development of malnutrition.”

“The Ministry of Health estimates that the new basket will be 20% lower than the current basket [85 trucks instead of 106].”

And so it was, until 2010, when “Israel has not imposed any restrictions on the entrance of food to the Gaza Strip.” And, after that, as of at least 2012, “the current policy remains shrouded in secrecy.” However, (as shown at that link, where is printed a “Table 1. Entrance of trucks into Gaza”), the actual count of trucks, during the second half of 2010, was around 150 per day.

A U.N. publication “Gaza Ten Years Later”, issued in July 2017, reported that: Import of goods to Gaza also dropped significantly with the imposition of the blockade in mid-2007. By 2008, the monthly average of truckloads entering Gaza had decreased by 75%17. The amount of imports slowly increased as import restrictions were gradually relaxed, with the number of trucks entering in 2015 and 2016 reaching levels similar to those prior to 2007. It is difficult to draw a parallel between 2015/2016 and 2007 however, given that due to the vast needs for post-hostilities reconstruction as well as recovery of Gaza’s deteriorating infrastructure, coupled with rapid population growth, demand for import into Gaza was much higher in 2015/16 than it was prior to 2007.

The needs today are even higher than that.

Sisi might be able to win some voters if he can brag to them that he has gotten Israel to increase that number above whatever it currently has been, but it will be only for show, anyway.

Egypt is heavily committed both to the Saudi regime and to the American regime. To say that the fate of the Gazans is in the hands of Israel and of Egypt, would be to say that it’s in the hands of the rulers of America and of the rulers of Saudi Arabia (the Saud family, who own that country). The rulers of Israel won’t have any international backing, at all, if they don’t have America’s rulers supporting them. For Donald Trump to tell Benjamin Netanyahu that not only will Israel be allowed to ignore Hamas but it will even be allowed to ignore the Palestinian Authority, means that Netanyahu now has America’s support no matter what Israel might do to the Gazans — and to the non-Jewish inhabitants of the West Bank.

This is excellent news for the holders of U.S. ‘Defense’ stocks. The more that America’s ‘enemies’ suffer, the better it is for America’s owners. This is how capitalism actually functions. Inequality is natural. That’s true not only between nations, but within nations. In the natural world, losers get eaten. Justice doesn’t naturally occur anywhere. To the extent that it exists anywhere, it is imposed, by the public, against the aristocracy. Within nations, justice is almost non-existent. Between nations, it is entirely non-existent. For examples: were George W. Bush and Tony Blair executed for invading and destroying Iraq in 2003? Of course not. Neither of them was even imprisoned. Nor were Obama and Sarkozy and Cameron executed for invading and destroying Libya in 2011. Those are only examples, of the basic reality.

This news-report is written so as to place a news-event into its actual context, not divorced from that, as is normal. In other words: it’s news instead of propaganda (the latter of which, avoids the relevant context behind the reported event).

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Middle East

Amid ethnic protests, Iran warns of foreign meddling

Dr. James M. Dorsey

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on

Iran has raised the spectre of a US-Saudi effort to destabilize the country by exploiting economic grievances against the backdrop of circumstantial evidence that Washington and Riyadh are playing with scenarios for stirring unrest among the Islamic republic’s ethnic minorities.

Iran witnessed this weekend minority Azeri and Iranian Arab protests in soccer stadiums while the country’s Revolutionary Guards Corps reported clashes with Iraq-based Iranian Kurdish insurgents.

State-run television warned in a primetime broadcast that foreign agents could turn legitimate protests stemming from domestic anger at the government’s mismanagement of the economy and corruption into “incendiary calls for regime change” by inciting violence that would provoke a crackdown by security forces and give the United States fodder to tackle Iran.

“The ordinary protesting worker would be hapless in the face of such schemes, uncertain how to stop his protest from spiralling into something bigger, more radical, that he wasn’t calling for,” journalist Azadeh Moaveni quoted in a series of tweets the broadcast as saying.

The warning stroked with the Trump administration’s strategy to escalate the protests that have been continuing for months and generate the kind of domestic pressure that would force Iran to concede by squeezing it economically with the imposition of harsh sanctions.

US officials, including President Donald J. Trump’s national security advisor John Bolton, a long-time proponent of Iranian regime change, have shied away from declaring that they were seeking a change of government, but have indicated that they hoped sanctions would fuel economic discontent.

The Trump administration, after withdrawing in May from the 2015 international agreement that curbed Iran’s nuclear program, this month targeted Iranian access to US dollars, trade in gold and other precious metals, and the sale to Iran of auto parts, commercial passenger aircraft, and related parts and services. A second round of sanctions in November is scheduled to restrict oil and petrochemical products.

“The pressure on the Iranian economy is significant… We continue to see demonstrations and riots in cities and towns all around Iran showing the dissatisfaction the people feel because of the strained economy.” Mr. Bolton said as the first round of sanctions took effect.

Mr. Bolton insisted that US policy was to put “unprecedented pressure” on Iran to change its behaviour”, not change the regime.

The implication of his remarks resembled Israeli attitudes three decades ago when officials argued that if the Palestine Liberation Organization were to recognize Israel it would no longer be the PLO but the PPLO, Part of the Palestine Liberation Organization.

In other words, the kind of policy changes the Trump administration is demanding, including an end to its ballistic program and support for regional proxies, by implication would have to involve regime change.

A string of recent, possibly unrelated incidents involving Iran’s ethnic minorities coupled with various other events could suggest that the United States and Saudi Arabia covertly are also playing with separate plans developed in Washington and Riyadh to destabilize Iran by stirring unrest among non-Persian segments of the Islamic republic’s population.

Mr. Bolton last year before assuming office drafted at the request of Mr. Trump’s then strategic advisor, Steve Bannon, a plan that envisioned US support “for the democratic Iranian opposition,” “Kurdish national aspirations in Iran, Iraq and Syria,” and assistance for Baloch in the Pakistani province of Balochistan and Iran’s neighbouring Sistan and Balochistan province as well as Iranian Arabs in the oil-rich Iranian province of Khuzestan.

A Saudi think tank, believed to be backed by Crown Prince Mohammed bin Salman, called in 2017 in a study for Saudi support for a low-level Baloch insurgency in Iran. Prince Mohammed vowed around the same time that “we will work so that the battle is for them in Iran, not in Saudi Arabia.”

Pakistani militants have claimed that Saudi Arabia has stepped up funding of militant madrassas or religious seminaries in Balochistan that allegedly serve as havens for anti-Iranian fighters.

The head of the State Department’s Office of Iranian Affairs met in Washington in June with Mustafa Hijri, head of the Kurdistan Democratic Party of Iran (KDPI), before assuming his new post as counsel general in Erbil in Iraqi Kurdistan.

Iran’s Revolutionary Guards said last weekend that they had killed ten militants near the Iranian border with Iraq. “A well-equipped terrorist group … intending to infiltrate the country from the border area of Oshnavieh to foment insecurity and carry out acts of sabotage was ambushed and at least 10 terrorists were killed in a heavy clash,” the Guards said.

The KDPI has recently stepped up its attacks in Iranian Kurdistan, killing nine people weeks before Mr. Hijri’s meeting with Mr. Fagin. Other Kurdish groups have reported similar attacks. Several Iranian Kurdish groups are discussing ways to coordinate efforts to confront the Iranian regime.

Similarly, this weekend’s ethnic soccer protests are rooted in a history of football unrest in the Iranian provinces of East Azerbaijan and Khuzestan that reflect long-standing economic and environmental grievances but also at times at least in oil-rich Khuzestan potentially had Saudi fingerprints on them.

Video clips of Azeri supporters of Tabriz-based Traktor Sazi FC chanting ‘Death to the Dictator” in Tehran’s Azadi stadium during a match against Esteghlal FC went viral on social media after a live broadcast on state television was muted to drown the protest out. A sports commentator blamed the loss of sound on a network disruption.

A day earlier, Iranian Arab fans clashed with security forces in a stadium in the Khuzestan capital of Ahwaz during a match between local team Foolad Khuzestan FC and Tehran’s Persepolis FC. The fans reportedly shouted slogans reaffirming their Arab identity.

Saudi Arabia and other Gulf Arabs have a long history of encouraging Iranian Arab opposition and troubling the minority’s relations with the government.

Iranian distrust of the country’s Arab minority has been further fuelled by the fact that the People’s Mujahedin Organization of Iran or Mujahedin-e-Khalq (MeK), a controversial exiled opposition group that enjoys the support of prominent serving and former Western officials, including some in the Trump administration, has taken credit for a number of the protests in Khuzestan. The group advocates the violent overthrow of the regime in Tehran.

Two of Mr. Trump’s closest associates, Rudy Giuliani, his personal lawyer, and former House speaker New Gingrich, attended in June a gathering in Paris of the Mujahedin-e-Khalq.

In past years, US participants, including Mr. Bolton, were joined by Saudi Prince Turki al-Faisal, the former head of the kingdom’s intelligence service and past ambassador to Britain and the United States, who is believed to often echo views that Crown Prince Mohammed bin Salman prefers not to voice himself.

“The mullahs must go, the ayatollah must go, and they must be replaced by a democratic government which Madam Rajavi represents. Freedom is right around the corner … Next year I want to have this convention in Tehran,” Mr. Giuliani told this year’s rally, referring to Maryam Rajavi, the leader of the Mujahedeen who is a cult figure to the group.

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