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Magical Pills, Mysterious Deals

Magical Pills, Mysterious Deals, Mobsters and Our Money

by Craig Rowley and Richard Tonkin

Gerard Ryle, an award winning investigative journo currently working for the SMH, has been breaking a most intriguing story about the rise of a man with a magic mystery pill, how he and his little fuel booster firm, Firepower, shoots for the stars and the way Austrade doles out our money to the pill man's secretive firm.

The Austrade connection and the fact they had until today celebrated Firepower as a success story on their website is all the more interesting given the Firepower-AWB inquiry link. And there's more in the story to makes you wonder what Downer’s DFAT really does these days.

There are links to trouble with the Russian Mob and relationships with Grigory Luchansky - the man whom successfully sued The Times of London for calling him "the most dangerous non-convicted person in the world" when making allegations of his involvement in money laundering and trade in nuclear material amongst other crimes.

With all these elements we have to agree with Michael Pascoe writing for Crikey:

"…why does this seem to be such a non story to some media outlets? Here’s a dubious-looking outfit (it’s actually not a company in Australia in the usual meaning of the word) that’s become remarkably high-profile by emerging almost overnight as one of the nation’s biggest sponsors of sport, that’s enlisting various jocks to spruik its unproven products, that’s picked up nearly $400,000 from the tax payer, that claims the support of a state premier and a prime minister – and it’s largely unreported. "

So today we set out the basics of this story for all those Webdiary readers who want to play catch up and try to make some sense out of the machinations of the men with the magic mystery pill.

As far as we can make out the story begins in June 1999, when Perth businessman Tim Johnston, believing he has something to sell that will make him a big star of the business world, sends off the forms to ASIC to register a company – Bigstar Nominees Pty Ltd.

A couple of years and name changes later, Johnston’s companies are trading as TLC Engine Care System Pty Ltd and TPS Group Pty Ltd. Johnston jets off to one of the lands of big opportunity in 2001 and from an Indian industry news outlet we learn that what he had to sell was a magic pill - the PowerMax pill - described as being to your vehicle what Viagra is to mankind:

"PowerMax, the brown pill to enter the pollution control equipment market, enhances the performance of your engine and keeps the fuel going for many an extra mile. And like the blue wonderdrug that revolutionised male healthcare across the world, PowerMax promises a major breakthrough to a cheaper, cleaner transport system and thus a purer world. "

Mysteriously, given the claimed potency of the PowerMax product, Tim Johnston and his team don’t seem to make the most of their "major breakthrough" for the first few years of the naughties. You'd expect they would've, particularly given that PowerMax was, at least according to Tim Johnston and TLC, developed in Australia "with the assistance of the Shell Motoring Company". But you'll find there’s not much news out there about PowerMax bringing about a "purer world" as promised. No news, in fact.

However, fast forward a few years and we find TLC Engine Care System Pty Ltd has had a makeover. Tim Johnston's little Perth-based start-up has metamorphosed into Firepower Oceania Pty Ltd, just one part of the Virgin Islands registered Firepower Group.

The PowerMax pill is now the Firepower pill (though strangely the company in its current manifestation doesn't refer to PowerMax or the assistance from Shell in its development on its information-lite website) and in September 2005, Tim Johnston, as chairman and CEO of Firepower Group, turns up in Pakistan at a meeting with the Minister for Environment, Major (Ret) Tahir Iqbal. That meeting must have gone well. Iqbal announces that Firepower Group intends to invest US$35 million over a period of 5-7 years in a manufacturing and blending facility in Pakistan. Through this facility, a 'Petroleum additive' or 'Fuel Conditioner' which is being "successfully utilised in 53 countries worldwide" would be introduced in Pakistan as well, Iqbal said. [Whoever can find that Firepower funded facility in Pakistan first wins a prize, and while you’re searching for it please see if you can turn up OBL’s hidey hole 'cause that's worth a bit too.]

From the reports of Pakistani investment we learn that for some reason Firepower can sell a heap of its magical product (in 53 countries worldwide) but you can't find that product in most parts of our own. The magic pills are sold domestically in only a few dozen outlets in Western Australia and the Northern Territory, plus a marine supply shop in Hobart. It's peculiar that despite the Firepower logos worn by the Rabbitohs not one shop in NSW stocks their stuff. And Tonga's rugby squad will travel to England and (hopefully) France to compete in this year's Rugby World Cup emblazoned with the Firepower logo, but is there an outlet selling the magic pills in Tonga? Nup.

Actually, you have to wonder how much of Firepower's stuff is sold internationally at all. They proudly claim the handful of little Aussie distribution outlets, but list none in overseas locations. And when their CEO spoke to the media yesterday he said, "What you are failing to understand is that whilst Australia is an important market for us, 99 per cent of our business will be done overseas." Will be done? Does that mean it's more of a statement of intended future business than a description of the business they've been doing?

And if you think that's all a bit strange then consider another Firepower claim, relayed by the Pakistani Environment Minister, that the magic pill has "enormous benefits" including the ability to reduce harmful exhaust emission by up to 70 percent and that the magic pill "has already been extensively tested and is being by used by industry, power, railways, agriculture sector world wide and in the armed forces of Australia, New Zealand, Russia, Thailand and Indonesia". It’s a strange thing because the ADF and our Department of Defence deny ever buying the Firepower pill, but we’ll come back to this a little later.

First let’s look at how fantastic business was for Firepower last year, a very successful year for the firm according to (and thanks to) Austrade. Firepower did a big deal or two in Russia. First it signed a multimillion deal with the Russia's largest coal producer, Kuzbassrazrezugol. Then, as revealed at the Australia Week in Moscow trade show, it signed a joint venture with the aforementioned Grigory Luchansky.

Indeed business with Kuzbassrazrezugol, owned by the mega-rich Iskander Makhmudov and Andrei Bokarev, was so good for Firepower last year that Tim Johnston received death threats. These death threats, suspected of coming from one band of Bratva or other, may or may not have been motivated by anything to do with connections between Makhmudov, Bokarev and Boris Yeltsin’s "Family", but one thing we do know is that they motivated the Australian embassy in Moscow to organise four bodyguards from Russia's special forces unit to accompany Mr Johnston during the trade show.

Personal protection wasn’t the only help provided to Tim Johnston and his successful Firepower firm by Austrade. As reported by Gerard Ryle, one of the deals set up through Austrade was to have a Firepower product – a fuel system cleaning machine - manufactured in Romania under an arrangement with British arms dealer, BAE Systems. With respect to this deal Ryle writes that:

"The Herald understands that BAE Systems assisted in the manufacture of the machines to satisfy what is known as an ‘offset agreement’ with the Romanian Government. Offset agreements are common practice in large international arms deals. They require a supplier to direct some benefits - usually work or technology - back to the purchaser as a condition of the sale. While the Herald does not suggest that the deal involving Firepower's products was anything other than a normal business transaction, allegations concerning some of BAE Systems' dealings in Romania and four other countries are being investigated by the Serious Fraud Office in Britain. The company did not respond to a Herald request for comment. "

Given the description of these arrangements as normal business transactions you may wonder how many other ‘offset agreements’ Austrade assists, but that is just one of many things to ponder as the Firepower story unfolds.

Yesterday the man Firepower appointed as its new CEO (a nice coincidence that followed his timely departure from Austrade) could not produce any results proving the ‘enormous benefits’ other than mentioning how much more mileage he makes in his Maserati. As Michael West reports, John Finnin was "unable to furnish any proof of Firepower's technology, any scientific work or even put on show the revolutionary pill itself".

One of the most bizarre aspects of Finnin's response to questions about Firepower's remarkable product was his revealing that it hasn't been patented. Finnin says that the pill contains intellectual property rights "we are simply not willing to divulge." You have to wonder if Firepower is being a bit overcautious about chemical analysis. Finnin says the Firepower product is like Coca-Cola. Maybe it is Coca-Cola?

And Finnin has other, more interesting, questions to face. As Mark Hawthorne reports in The Age today: "No matter which way John Finnin turns, the former Austrade deputy consul-general is in the firing line." You see Finnin is named in a document provided to the Cole inquiry, which revealed that, in his role as Austrade's director for Europe, the Middle East and Africa, he met the owners of the ‘Jordanian’ (read Iraqi) trucking company Alia in September 2003.

But putting aside Finnin’s pre-Firepower activities a list of questions about this business compete for focus.

First, what's with this magic product? Why does it seem they sell it everywhere but here? Why is it not patented?

Where does Firepower really get its money from? We know it got nearly $400,000 in “export grants” from us, the taxpayers, but where does it get the millions it can pour into sports team sponsorships here and its various overseas projects like the $35 million Pakistani manufacturing plant? Is it all from the deal with one of Russia's richest?

Where does Firepower’s money go? We know it isn’t going into scientific testing to prove the power of its the magical pill and other products, we know some of it goes back to Austrade in sponsorship, and we know some of it is now being splashed around on sports teams, but what about the rest? Who are the investors?

And the biggest question of all: What does the future hold for Firepower, its magic pills and mysterious deals, and will our money be used again to support it?

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Firepower's testimonial written by an ad-man

I've just gotten around to Googling the address of the sole and anonymous testimonial provider and come up with this contract form.  It belongs to a Perth based company called Search World, one of those e-businesses that influences websearch rankings to optimise a company's internet appearance.

 It looks to me that somebody has goofed.  If the only person that Firepower could find as an endorsee is their internet ad-man, doesn't this make the testimonial a fallacy?

At any rate, the company's internet image has changed somewhat of late.

The added product data on the site seems to be mostly concerned with soot, sludge and smoke.  As far as I can see the pictric acid (explosive) and detergent composition of Firepower products, of which there are plenty of US patents, still holds as likely. 

Has Firepower not patented its products because ithey're patented already?  I'd take a guess that if the group applied for a patent they'd probably get knocked back.

From Romania to New Zealand, and back to S.A.

How, you wonder, was Austrade so negligent as to not know that their white kinght of carbon emission came to them with an already blackened reputation?  Ryle reports in today's SMH  that Johnston had made sworn statements in New Zealand containing false claims of Australian testing, and had tried to block the release of documentation that proved that his product-of-the-day was a placebo.  You'd think that DFAT, ASIO or the US Embassy (apparently interchangeable these days) would have sent a communique back to Canberra for Downer to deny reading.

Somebody really needs to ask Firepower CEO Finnin what he was talking to Saddam's co-owners of Alia about.

Paul Walter, on the day that the PM visited the Murray Mouth for a photo-op, it was timely to read that piece.  I found these lines eye-catching

 

Separating water from land is just the first move in a number of legal rewritings which we can expect to see in coming years.

If you think Howard’s move on saving the Murray Darling Basin is important, look closer, read the small print, look out for separations. They are markers of far worse things to come.

 Howard was very close today to the tract of water in which Premier Rann was advocating a Public Private Partnership, the Twin Lakes project I keep harping on about.  Are the "public" component of such plans on the Murray about to move under Howard's control?  By the way the fact that Howard has just announced spending all this money affirming the freshwater nature of the Coorong makes it highly unlikely that Turnbull is going to bung a weir across and turn it all back to a saltwater based environment.   The  most likely water control now would be the Halliburton partnership, which promises to save each year the water volume that the PM has magnanimously condescended to send down.   If he now has control over such projects then he can more than easily afford to do so.

It looks to me that the instigations of the previous Sate Liberal Government have just been stolen back by Liberal at a Federal level.

As Howard was being chauffeured to the Murray Mouth, he might have been reading this in yesterday's Advertiser:

[extract]

MORE than $1 billion worth of infrastructure works are in progress in the Port Adelaide region ahead of a defence and housing boom.

Freight links in the city's north-west are being upgraded, with bipartisan support, as the Port is about to be transformed by the $1.5 billion Newport Quays inner harbour redevelopment and the $6 billion air warfare destroyer contract.

Long-awaited $178 million opening road and rail bridges over the Port River are expected to be finished this year.

The road bridge, which connects the $90 million Port River Expressway with Victoria Rd, will achieve the longstanding ambition of diverting trucks from the Port Centre.

Both bridges will open for shipping with the road span expected to be finished by the end of the year and the rail link by the middle of the year.

The rail bridge connects with the Le Fevre Peninsula rail corridor, which is being upgraded to dual track as part of a $24 million program.

This will link with the container terminal and $100 million Outer Harbor grain terminal, operated by ABB Grain, which is expected to be finished by the end of the year.

A dredging of Outer Harbor's channel was finished last year, extending it from 9km to 11.7km and deepening the channel by 2m to 14.2m. The $45 million project was jointly funded by the State Government and Flinders Ports.

A $24 million marina is being built at Largs North, which will house the Port Adelaide Sailing Club - relocated from the inner harbour.

The joint state / federal Northern Expressway, expected to cost $550 million, will link with the Port River Expressway via Port Wakefield Rd.

The air warfare destroyer construction, based at Osborne's ASC, is an important driver of the freight link upgrades. As part of the deal to secure the contract, the State Government will spend $243 million on a defence precinct for subcontractors and others involved in the destroyer construction

Toto, I don't think we're in Romania any more.  Anyway as Paul Starick's piece was being posted I was finishing a Halliburton Australia recap which I recommend you read

-------------------------------------------------------------------------------------------------- 

The style of approach being used here is quite similar to the one applied in Romania. 

up the creek without a paddle

Richard, thanks for link to YourDemocracy- an idea touted a couple of years ago I had forgotten about, that is bearing fruit.

The thing that came to mind reading about Twin Lakes was the "Hindmarsh Island"  kerfuffle of the nineties . Do you remember the acrimonious brawling  and political dung hurled about  smearing  all manner of  academic, political and ethnic bystanders?

Yet  Rann sounded right on TV concerning water, with his central plank of a beefed-up authority at arms remove from the  federal government sounding eminently sensible to some one who believes that the main inputs should from CSIRO and other educated sources, not the usual collection of motley vested interests and carpetbaggers who have been ruining the Murray  Darling so assiduously.

Kerry O' Brien seemed a pale shadow of the man who once took on Jonathon  Shier and a stack of politicians for breakfast and spat them out by smoko with hardly a burp. Rann got very close to drawing an equivalency between his purported  Murray- Darling  commission and the ABC, back in the days when the board was still independent of the government and acted in the broadcaster's and viewers interests rather than in the government's against the former.  So,  the  PM's petulant responses about mandated federal control this morning , were totally predictable. The  last thing Howard wants is an organisation of educated people with the Murray- Darling's interests at heart, standing between him and control of the asset.

But the Murray Darling is an asset. If the Reserve  Bank can be an arms-length body, why not any organisation responsible for the informed management of the Murray-Darling?

And do we want the same that happened with industrial relations or Iraq happening with the Murray  Darling? Caprice and secrecy replace fairness and objectivity.

Of course the comments by  Rann, including his trenchant criticism of that inflammatory perversity Cubbie  Station, demonstrate why Howard is really involved with water policy just now- it is a potent wedge to  encourage brawling between the states, as well as an assett for him to "capture".

He will try to play some off by bribing others, as occurred with  Tasmania in 2004, in the meantime facilitating his objective of accumulating a critical mass of powers that will strangle all alternatives.

No evidence, yet again

I'm off to the Murray mouth for a few days.  Hopefully when I get back I'll have a piece on the people that Howard flew over going to and from his twenty minute media session at Goolwa.

There's a Stop The Weir meeting at Milang tomorrow and I'm having tea with a couple of the local elders tonight.  Taking my camera and tape recorder.

Back to Firepower..Phillip King reports in today's Oz  that the Australian Automobile Association approached the company for supportive data last year, and still hasn't been given any proof that the product actually works.

How's this for a line from a Firepower spokesman: "In some cars and some situations it will have a benefit on miles per gallon; on other cars it will benefit emissions."   Perhaps it might relate to which proportions of chemicals are in the sludge on pill-making day?  The spokesman also said that results from overseas test didn't apply here.  What does this mean?  Firepower's website uses the overseas "research" as vindication.  If the OS work is irelevant (and what there is is pretty shonky) then one or both of the following apply.  (a)  What's being sold abroad has a different chemical composition (b0  There is no good reason to believe that the Firepower products sold in Australia are of any benefit to an engine.

I wonder how long it's going to take until this issue truly hits the fan?

foreplay

Richard Tonkin: "...a stageplay underway... The name ...Cheney comes to mind...sabotage of the gas pipeline to Romania...now apparently an opening move in a Halliburton-partnered national take over...a blatant move by Cheney  manipulating local resources to increase his profits. Would such a code of ethics have been  applied to  Australia.  Perhaps someone should ask  Cheney when he comes to Australia in a couple of weeks".

Well, all this talk of  Halliburton, pipelines and privatisation had me re-reading  Dr. Susan Hawthorne's article, "Unbundling water from land", in "Online  opinion",15/1/07 ( yes, I know I said  I wouldn't post  again, but this is a different thread,  Richard has my respect and I can hope Kingston allows me a fair go since she appears to be "back", so here we are).

The Hawthorne article has much to say on privatisation of water, "concessions", the  AUSFTA and asociated possible legal changes favourable to Bechtel/Halliburton/KBR at the expense of other international water-giants and much to say on the legal mumbo-jumbo that ruins previous rules of access to and control of water, that protected Australians and their environment. 

Given the recent noises involving water policy, perhaps Tricky Dicky Cheney has another item on his agenda; another reason for visiting our fair shores at this time of times? 

The Inner Circle

Crikey's Michael Pascoe has had a look at Firepower's substantiative documentation and found it, shall we say, lacking a little.

Instead of the stack of documents 30 centimetres thick indicated by CEO John Finnin, it was a much thinner file and most of it was irrelevant.

The promised tests by DEKRA and San Antonio’s Southwest Research Institute weren’t about fuel efficiency and emissions, just showing Firepower’s additives didn’t change the fuel’s ratings, i.e. fuel with the additive still met engine specifications.

Which left three making fuel efficiency claims. Firepower would only allow the documents to be sighted, not copied or taken away. (Apparently Firepower is concerned that its competitors would copy the documents and change the name to their own – that’s the sort of business this magic fuel pill is.)

 Meanwhile, over at the SMH Gerard Ryle has, apart from finding out the same stuff as Crikey, been doing some digging into that George Teleman bloke I mentioned two weeks back.  It turns out that Teleman did more than act on Equest's behalf to set up Firepower's Romanian deals.  He was, in fact, the 90% owner of Firepower Romania,  the other 10% owned from Australia.  He was also, Ryle learned from the Romanian Centre for Investigative Journalism, a close relative of a couple of Ceaucescus.

Teleman also was a financial consultant to Regal, the company headed by the German Halliburton (now Firepower) chiefl  Regal, Halliburton and Timmin's (the bloke who was putting Australian money into Regal) Canadian company failed to get control of the privatisation of Romanian petroleum.

Given the level of nepotism at play here you have to wonder at how high a level this activity is being co-ordinated.  It now appears likely that the Halliburton chief was also acting as a "front".  If so Note could be acting for other powers than the Russian mob.  So could Tinnis.  The fact that after such chessmanship these gentlemen became the head honchos of Firepower suggests to me that there has been a stageplay under way.

The name Dick Cheney springs to mind.  

If,as  the Russians thought, Regal was funding the sabotage of the the gas pipeline to Romania, now apparently an opening move in a Halliburton-partnered national takeover, then you're probably  looking at a blatant example of Cheney manipulating local resources to maximise his profits.

Would such a code of ethics have been applied to Australia?  Perhaps somebody should ask Cheney when he comes to Australia in a couple of weeks to discuss Asian security and the War On Terror.

Firepower and The World's Fastest Indian

I've finally watched the World's Fastest Indian.   Anthony Hopkins plays a crusty old New Zealand enginesmith who drops a nitroglycerine tablet in his bike engine just before his record-breaking ride at Bonneville. This  review extract sums up what caught my eye:

Before he starts a speed run, he takes two pills out of the bottle. He sticks one under his tongue to ward off a heart attack. He drops the other one into the gas tank to give the motorcycle an extra burst of power.

It set me wondering whether Firepower's fuel additive was something so simple, or almost.  On my first search I came up with this US patent application, an new process to make a fuel additive.  It notes:

Numerous patents have been granted for processes which utilize picric acid, some form of iron, and a solvent to produce an additive for hydrocarbon fuels which increases the efficiency of the combustion of such fuels, resulting in better mileage, reduced deposits within the engine, and a smaller quantity of pollutants in the exhaust.

 

Picric acid was used commonly as an military explosive before TNT

The ingredient that appears often in the process under application here , hydroquinone, is a bleaching agent used in beauty products.   Apparently it has a stabilising effect in the process. Could it also be used to "whitewash" black smoke.?   If somebody's thought this much about putting it in engines. bet that it does.  Unfortunately it appears to be toxic if taken internally, so I guess you wouldn't want to much of it in the air. 

What relationship has all this  to the Romanian Rosia Montana mine's cyanide sludge?l.  A "solution" for the problem, perhaps?   There was scientific work going on in Romania in the '60s.

[extract]

An improved spectrophotometric assay of hydrocyanic acid and cyanide ions with picric acid and resorcinol is described. Cyanides at low concentrations in water (0-10 μg mL[-][1] CN-) and hydrocyanic acid collected in dilutesodium hydroxide solution react with a solution of 2% sodium carbonate containing 210 μg mL[-][1] of picric acid and 100 μg mL[-][1] of resorcinol to form a novel indophenol compound,

 One such compound, dichlorophenolindophenol, or DCPI,  can be used as an oxidation-reduction indicator that undergoes a definite colour change at a specific electrode potential.  Something like this is bound to make your factory and engine smoke whiter.

Come to think of it, is the Rosia Montana one big Firepower Factory, a "natural" combiner of the "energy pill" ingredients?

It's ironic, isn't it, that the World's Fastest Indian's additive (nitroglycerine to methanol being another thing altogether ?) and Firepower are probably two of the best known fuel additive stories in the wold today,  and yet the geographical corellation ()Firepower having originally been PowerMax from New Zealand) goes unmentioned in the blurbs.  You'd think it would be a publicists' "gold mine."

I know I'm not quite there yet, but this feels closer.

Found in translation

Firepower's website is webmastered from Dubai. Suspicions?  Does this mean that any false claims that might be made therin aren't prosecutable under Australian law?  I picked up this info from a motorsport forum on which the some of  petrolheads have made the assumption that the name is some kind of inside joke for activities involving arms deals laundering.  One bright spark has pointed out that USSR-favourable deals in third world countries were carried out by front companies on behalf of the KGB.

 I begin to wonder, reading this convolutedly Google-translated report.  if Firepowers products have been more successful in Russia because of what is/was going into Russian engines.

[extract]

For sulphur engine is both useful and harmful. Reducing its concentration in the summer without compensation dramatically increases the speed of wear .Incidentally, it was mud and water in the fuel, the main causes of failure for numerous brand service stations. On the other hand, a surplus of sulphur in the fuel significantly accelerates corrosion work surfaces capacity and the pace of ageing engine oil. .... The composition of the fuel should be made to European standards : there regulate and cetane number, and sulphur content, as well as low temperature properties, etc. But the essential thing is sulphur and diesel.


 I notice that Firepower is no longer  a success story on Austrade's Russian website

There is another Firepower site than the one from Dubai with the Russian translation.  If you put firepowergroup.ru through the Google translator you get a clean job, and a much more comprehensive website than the one we've been looking at.  The translation may be a bit dodgy where Firepower claims to be the owner of the technology's patents.  Especially when Mr Finnen says that the tecnology is patent free.  Anybody out there who can read Russian?

From the Russian site  it looks like the stuff takes out the water in the air in engines.  Whether or not this does more that deny the black stuff in smoke something to cling to remains to be seen. 

When you go back to "our" Firepower site, it's  obvious that provision of information is much more  important in Russia than here.  In Australia it's only important that the group looks big. We don't have so much mud in our fuel.

But wait, there's more !

Firepower are investing in Romania under their own steam, through The Isle Of Man based Balkan subsidiary of London investment advisors  Equest.   They're the ones who set up the Firepower/BAE partnership, I don't yet know what else was in the portfolio Equest's George Teleman developed for Firepower.  besides the $34.5 million Euro shopping mall 

I do know the same Romanian legal firm looking after the shopping mall deal over the last two years handled

A US$850 million investment related to a mining project following the joint venture between Gabriel Resources Ltd [Aussie  Tinnis' ]., a Canadian mining group, and the Romanian state-owned company Minvest, for the purpose of exploration and exploitation of the biggest gold and silver mining site in Europe, Rosia Montana

Do you wonder how much of this $US 850 million ends up in the hands of Halliburton?  And what's the chance of a chunk of the cash being Saddam's ?

Now I'm wondering how much Australian sport sponsorship money is tax deductible.

Hang on, I've just found this Romanian Daily report on the total 100 million Euros that Equest has invested in Romania

Equest Balkan expects 9-10 percent yearly yield for their investment and the first acquisitions target properties are in Bucharest and Iasi (north-east; 406 km from Bucharest).

The company is already operating on the real estate market in Bulgaria, with the latest project in which it was involved being a major shopping complex.

Equest Balkan also focuses on the real estate markets in Albania, Bosnia and Herzegovina, Croatia, Fyrom, Serbia and Montenegro, and Turkey.

The capital of the company raised through an issue of shares in the London Stock Exchange that was oversubscribed.

You realise, of course, that this money chain makes it look much worse that Austrade/Firepower's Finnin was having a cuppa with Alia?

That's all for tonight. 

PS Bet your bottom dollar that Russell Crowe knew none of this when he announced the Firepower sponsorship on  Jay Leno's show. 

Australian Druggie and Halliburtion partners in Romanian takeove

From Alexander's Oil and Gas Connections, March 2004:

Last autumn, the British operator even tried to enter the race for the takeover of SNP (National Oil Company) Petrom, Romania's biggest company and submitted a joint letter of intent together with US-based Halliburton and Romanian company Tender.
However, the Romanian authorities rejected the bid of the three companies, arguing they failed to meet the criteria included in the privatisation announcement.

Halliburton, Firepower and the attack on Romanian energy


I found a bit more on the Halliburton connection Ryle reports in the SMH today on the website of the Romanian Centre For Investigative Journalism:

 

The name of the “REGAL Petroleum” company is mentioned in a letter addressed in 1999 by the Russian giant company GAZPROM to the then Romanian prime minister, Mugur Isarescu. GAZPROM says in the letter that “REGAL Petroleum” works together with the Ukrainian organized crime groups that steal gas from GAZPROM pipelines and sell it afterwards to Romania.
At this very moment, Regal has activities in Ukraine and Romania where its partner is the “Prospectiuni SA” company that belongs to Ovidiu Tender .

Ovidiu Tender told us in an interview that he met Guenter Nolte, the general manager of Halliburton Germany, in 2000 but he denies that Nolte facilitated his alliance with the Halliburton group for the privatization of PETROM. He said we should talk to Frank Timis.
A very important fact in this context is that the branch of Halliburton in Romania is the “Halliburton Energy Services Romania SRL” which has as sole representative the Dutch citizen Tako Jan Kremer. Kremer is in the meantime a director of Halliburton Germany where until March he was a colleague of Guenter Nolte. Ovidiu Tender told us that he doesn’t know any Tako Jan Kremer the representative of Halliburton in Romania. Besides representing Halliburton in Romania, Kremer is a director in the following companies, all tied to the Halliburton group: “Halliburton Company Austria Gmbh”, “Baroid Gmbh” from Germany and “Kellog Brown & Root Gmbh”(KBR)

Ryle quotes The Independent as reporting that Regal was initially funded by a group of  private Australian investors.  who, it would seem, bailed out after the initial float, but not before the ex-Halliburton chief resigned from Regal to represent Firepower.

The question is whether Nolte was so close to mob money before or after his tenure at Regal.

Aside: Isn't it funny how this has all happened just after the Romanians privatised their energy?  I hope Hugo Chavez is taking notes.

Actually, following it through you've appear to have group of Australians financing the infrastructure for local crime lords to comprise the  Romanian energy system.  I wonder who's funding that of ours?

I also wonder what blueprints for Romania were on file at Halliburton's  Global Infrastructure Headquarters in Adelaide? 

 Oddly my mind turns back to the hazelnut farm that KBR has just constructed on the banks of the Murray to attract overseas investors.  It seemed odd enough already, what  with the water crisis and the same engineer who did the Twin Lakes water reclamation plan.

Hell, if they can do it to the Romanians....

At any rate, the links from Firepower to drug money have just become much more substantial.


 

Mr Tinnis

Mr T is involved in some very big business.  Some of it appears to involve giving Romanian gold deposits an "additive"

[extract from Gold Petrol, Tender Talpes and Tinnes by Cornel Ivancovic, March 2005

As a reward for the services rendered to Timis, Mihail Ianas will be appointed, by Timis, as Regal Petroleum's Romanian representative. These services mean exploitation concessions for gold for Timis' companies in the Golden Quadrilateral in the Apuseni Mountains . European Goldfields Ltd., where Timis holds 24% of the shares, leased initially an area of 150 square kilometers in the Baita Craciunesti, Certej and Zlatna perimeters. Afterwards, the surface reached 2,500 square kilometers. The data on the documents was erased with correction fluid; corrected and hidden so well that they were declared as having vanished. The current government is not by far unaware of this.

The same thing also happened in Rosia Montana which was leased to Gabriel Resources Ltd. From an original surface of some hundred square kilometers, after the corrections, the leased surface reached thousands of kilometers. Officially Frank Timis has resigned as Gabriel Resources' president.

The president and executive director of Gabriel Resources now is the Norwegian lawyer Oyvind Hushovd. The company is financed by the Bank of Montreal, Canada.

Rosia Montana ' gold will be exploited by Rosia Montana Gold Corporation and is scheduled to commence in 2007. Gabriel Resources holds 80% of Rosia Montana Gold Corporation and the state owned company Minvest Deva, has 19.3 %. The gold reserves in Rosia Montana are estimated at 10.6 million ounces and silver reserves at 52.3 million ounces.

A study carried out by SNC Lavalin Engineers & Contractors estimates a production of 559.000 ounces of gold per year, with costs of 128$ per ounce. An ounce is equal to an average of 30 grams. Calculate the quantity of gold in tones, but bear in mind that we are talking about 24 k gold; native gold.

Ovidiu Tender obviously became a director of Gabriel Resources. Canadian Stephen G. Roman retired from the management of the company. The economic manager of European Goldfields is an Irishman called Cristopher David Granell, appointed in August 2003. He is also Regal Petroleum's audit expert.

Last year, the daily newspaper “Jurnalul National” discovered Grannell amongst the directors of Balkan Petroleum. It also discovered that Grannell is a shareholder in a British company; this together with Stephen G. Roman.  

There exist indicators that Ovidiu Tender deceived former shareholders of Gabriel Resources; in the sense that he convinced them to sell their shares; this after laboratory analysis indicated a low gold concentration per tone of ore. Later, after the shareholders sold their shares, the analysis was repeated and a much higher concentration was discovered.  

If this is confirmed, then Tender can expect an investigation from the FBI and Canadian information services. Cheating shareholders is a severe offence in the United States .   What we surely know is that within the so-called Bucium Project, initiated by Gabriel Resources, resource estimates for the Frasin perimeter are at 508.000 ounces, containing 1, 91 grams per tone of ore, and those for the Rodu perimeter reach 813.000 ounces. Several more samples of gold ore were taken and analyzed in the laboratory at Gura Rosiei.   In parallel these tests were repeated at the ALS-Chemex Ltd. laboratory in Vancouver , Canada and Perth , Australia. These sources claim that the samples of gold ore taken from Frasin and Rodu were mixed with ore from South-Africa. Each deposit has clear particularities and unique fingerprints. 

The way the minerals are due to be exploited this year is to use cyanide to separate tiny particles of gold and silver from rock. 

Elisabeth Rosenthal reported in the IHT that

Those opposing the company say that pollution from a big mine would destroy the village, the environment and archeological sites. A valley, now filled with houses and four churches, will be dammed and converted to a storage pond for the cyanide sludge produced by the processing.

The IHT piece includes this choice quote from Anamaria Bogdan, director of Greenpeace Romania.  She said that "They are confident because in Romania it has been very easy to get what you want with money — maybe not quite bribes,"

Public opinion and accountability?

All these articles do is show us that, in spite of the brainwashings we're consistently subjected to telling us that living in our democracy means living in an open society where both public opinion and accountability matter , we are far away from that.

How can we change that?

Not Easy

F Kendall, the only way you're going to change it is to convince the mainstrean population that they are considered inconsequential, erase the current political machine and start again from scratch, Minus the lawyers. IMHO of course.

Fiona: Don’t forget, Richard, I too am a lawyer…

Poll Defying

There's a lot of good people in the political system as well as the legal system Fiona, that doesn't mean the system is good. You, Malcolm and Margo have many talents.

F Kendall has hit it on the button: this society is now governed by people who don't care what it thinks. 

When Howard said at that Rupert Murdoch dinner a while back that engaging in the Iraq conflict was the most "poll-defying" act of his political career, it was obvious that we were in trouble.  For such a phrase to be in the internal lexicon of the Prime Minister of a supposed democracy belies the detachment with which our leaders are viewing us, and implies that the rising damp is getting out of control.

Buttoned Down

Richard, you made the comment: "F Kendall has hit it on the button: this society is now governed by people who don't care what it thinks." 

Was it ever any different, a Golden Age of the caring power elite?

Touche Roger

Touche Roger.  but a government strongly linked to people and money profiting from manipulating a country's energy resources, who'da thunk it?

And I'm only talking about Romania.

Johnston seems to understand simplification.. that's why he's using sport as a foot-in-the-door to conduct his business.  That someone can so simply bypass political protocols (how many others have done so?) and establish such amazing diplomatic connections shows how stuffed the system presently is.

Come on, somebody tell us who's going to buy the patents.  Given the displayed connections to the company, Halliburton's the best guess.

If you'll pardon the metaphor, we're getting screwed.

Australian Weeks

Can anyone tell me how I could find out how much money Firepower gave Austrade as a major sponsor to 2005's Australia Week in Moscow?  I can't work out this financial looping in which Austrade gives Firepower money, iand then Firepower reciprocate.  When Austrade says that Firepower paid for the bodyguards that Austrade hired for Johnston, with such a set of interchangeable funds how could they tell?

Inadvertently my mind has flipped across to Australia Week in the USA., and I'm now wondering if Austrade might be pulling a similar scam there.  There'd be a lot more roublesi involved if they were.   For starters, there's now a shadow over f DFAT's employment  of Firepower's Rabbitohs co-owner..

(Crowe's Rabbitohs partner is WA businessman Peter Holmes a Courte.)

Hypothetically it's possible that Downer is hosting an event funded by Australian Government laundered Russian mob money.  I wonder what Russell would think of this?  You'd also think that Mr Holmes a Court would 've done  more homework on a  business from his home patch before he took their money.

There were no doubt other places than the US in which the Russian mob were interested in doing their laundry. There's no reason to presume that WA isn't one of them.

Things go better with coke...

I should use the ilk of Coca- Cola as fuel for my car (if I owned one)?

Although, I remember a lad we knew back in the old days who had made enemies having his car shagged after someone put some sugar in its petrol tank. So much to ponder, so will stick to a couple of obvious simple issues.

Firstly, can I applaud the obviously systematic and thorough rigour with which the Trade folk assess candidates for dollops of largesse? Wish someone would hand ME a fat sum like $400,000, simply for the way I held my face. In this most just of countries, of course.

Pascoe was right when he said the country remains "asleep" and it seems the malignant tsetse-tsetse may be rife at Austrade. I share Richard Tonkin's alarm. If this can get up, how many other lurks are being bled out this sector alone, let alone the rest of the system, this very same economy that we're told monotonously can't afford hospitals, universities and schools, or conservation, to name but a few of many goods.

I recall a conservative contributor here, Jay White alluding obliquely somewhere recently to the old and majestic Bottom of the Harbour rorts of the early 'eighties. It's always fascinating to watch how the system morphs rather than reforms.

$400,000!

On the outrageous criteria demonstrated, by example at the press conference and websites, including nil documentation, verification of product detail, let alone corporate structure and bookwork or relevant accreditation.

Why are more of the press not demanding some sort of enquiry into the way the Department runs its affairs on behalf of that already egregiously abused source, the financially outraged and intellectually insulted Australian public?

Where are the politicians responsible, at this time when reassurance is needed?

... and your money comes out nice and shiny

Paul, you've left some old coins in a glass of the stuff overnight?

No old coins

But I don t have any old coins, Richard. I would if I were a lawyer, say,or even a poor but honest publican.

 But then I'd need a swiming pool rather than a glass in the lawyer example.

Then yet again, if I were a lawyer I'd be shoving in notes rather than coins, wouldn't I (the pool, that is )?

Here's to brown trousers

The number of hits the last few days must have someone in Austrade cacking 'em. When s/he learns that a Google cache can still be seen, well ... there's likely to be a big stink ... know what I mean.

I wonder what was on that webpage that they are worried about. Was it this bit?

"Firepower Group has signed a three-year contract with Astana Oil (Kazakhstan), which plans to use Firepower technology to improve fuel quality and to prevent diesel fuel from freezing during the cold winters of Central Asia, where temperatures can drop as low as 40° C below zero."

Were they worried about this because it may be the same Astana Oil appearing on the bankrupt list last year?

PM "touching cloth"?

If Mr Howard had read this part of one of the Ryle pieces he probably needed to send for a tailor.

[extract] 

One document shows an invitation by Mr Howard for Mr Johnston to join him for a lunch in the Great Hall of Parliament House in honour of the President of Pakistan, Pervez Musharraf.

The Firepower documents claim the company was selected in 2004 by the European office of Austrade to be "one of only 10 rising global businesses".

"Firepower's activities within Austrade will be co-ordinated by John Finnin, deputy consul-general and [Austrade's] regional director - Europe, Middle East and Africa," a document states.

"This is a very significant development as it gives the company access to foreign governments at a government-to-government level and the extensive network of multinational corporations with whom Austrade has an existing relationship."

 The last line piques my curiousity.  For how many other companies did Firepower attempt to use Austrade as a "foot in the door" ?  How many times was the paperwork connecting Mr Howard to the business used?  Did using the PM get Firepower a gig in Pakistan?

Austrade running scared ?

Further ruminations: 

The combination of the quick-smart calling of Finnin's media conference and the rapid removal of Firepower from the Austrade site is a beauty of a "coincidence".   All it took was the mention of the words Alia and Austrade in the same SMH piece and abracadbra!

Who gave the order - Howard, Downer or Vaile?  To get everyone jumping through hoops so quickly would require a magician of particular prestidigitatory prowess.  If not these three, then some very senior 'helpers" at least.

My suspicion is that there's much more to the Alia connection,  especially when you consider that Finnin's chat with the honchos was six months after the invasion, and after (if not at) the time when the CPA became aware of what AWB were doing.

I keep on coming back to a difficulty in believing, if such a senior representative of Austrade was aware of Alia so far before the Volcker Inquiry, that his superiors did not.  Finnin, operating at his level, wouldn't have had a hell of a lot of superiors.

Which leads to my next question: as the most senior Austrade representative in the region, for how long had Finnin been aware of Alia, and how much did he know?  Was he aware of the US embassy gossip that had been around for years?  Supplementary question: why was he talking to Alia ?

Finnin's departure from Austrade to Firepower occurred roughly around the end of the Volcker Inquiry.  Might this have been the "circuit breaker" that allowed Messers H, D and V to swear on the Bible that they didn't know anything about the AWB kickbacks?   I'd bet that the departure from public service of such a person could be the stuff of potential political salvation, and worthy of a considerable price, in barter if not banknotes.

It's not a good look when someone with strong links to money launderers is talking to people with dirty money,  when that someone is the Australian Government's most important local sales rep.

This could be a bumper year for brown trousers sales in Canberra, I reckon.

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