Tony Blair’s dirty money

Tom Bower is an English investigative journalist who for more than three decades has been winning plaudits for his eye-opening books about such figures as war criminal Klaus Barbie, newspaper baron Robert Maxwell, business tycoon Richard Branson, and Labour MP Geoffrey Robinson. In 2003, he won the William Hill Sports Book of the Year Award for an exposé of corruption in English soccer.

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Tony Blair

Now (speaking of corruption) he’s published Broken Vows – Tony Blair: The Tragedy of Power, which tears back the curtain on the former British prime minister. Several excerpts from Bower’s book have been serialized in the Daily Mail, and they’re all of immense interest, probing Blair’s incompetent moves on education, health, and immigration, his missteps on Afghanistan and Iraq, his bellicose relationship with Gordon Brown, and much else. But three excerpts contained revelations about Blair the post-Downing Street wheeler-dealer – the useful stooge par excellence – that will be of special interest to readers of this website.

Bower takes us back to 2007, when Blair resigned from the top post and took up the role of Middle East envoy for the U.N., E.U., U.S., and Russia. Unfortunately, that position – however prestigious – was unpaid, and Blair, after living on a prime minister’s modest salary for a decade, was ready to be rich.

Very, very rich. 

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Bernard Arnault

He mentioned this desire to his former chief of staff, Jonathan Powell. Powell then spoke with a headhunter, Martin Armstrong. He, in turn, had a meeting with the CEO of J.P. Morgan, Jamie Dimon, who, meeting with Blair, offered him $100,000 to sit on the bank’s board. But Blair was insulted. $100,000? For an ex-PM? Hewanted more. Lots more. Forty times more. Specifically, he wanted “at least £3 million a year, a five-year contract as an adviser and a percentage of every contract he initiated.”

He got it. For whatever reason, Morgan agreed to give him pretty much everything he wanted. And that was just the start. He also got a £180,000-a-year stint as climate-change advisor to a Swiss insurance firm. Plus another “advisory” gig on the payroll of Bernard Arnault, the richest man in France. And yet another job “representing” – whatever that means – “a wealth fund based in Abu Dhabi.”

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Tarek El Aissami

While busying lining up these income-generating activities, Blair did something else: he set up (and hey, which one of us hasn’t, at one time or another?) a complex maze of limited-partnership shell companies through which to collect and channel cash from these and other paymasters – and to hide from authorities the true dimensions of the wealth he was now beginning to accumulate. This network of phony firms was, and is, no different from those set up by various crooks in places like Venezuela and Argentina whose hijinks we’ve recounted on this site over the past few months.

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Wilmer Ruperti

We’re talking about people like Tarek El Aissami, the thuggish governor of the Venezuelan state of Aragua, who, it will be remembered, lifts massive amounts of money from his state’s treasury and launders it through a vast network of shell companies, the chart of which, as we’ve noted, “looks more complex than the organization of the U.S. government itself.” And then there’s shipping magnate Wilmer Ruperti, who, in order to fool a Russian ship-rental enterprise into thinking it was chartering oil tankers to PDVSA, the Venezuelan national petroleum firm, set up a web of shell companies, to one of which he gave a name similar to PDVSA. Leasing a fleet of tankers from the Russian outfit, Ruperti then rented them to PDVSA at a profit. (And what does your dad do for a living?)

These are the kind of lowlife scum whose shabby stratagems Tony Blair, the former prime minister of the United Kingdom, has plainly studied up and imitated. Following their example, he’s lined his pockets magnificently.

But as we’ll see tomorrow, his similarity to these useful stooges goes beyond the mere setting-up of fake front companies. Tune in. 

Rogues’ gallery

Last time around we offered an overview of that species known as the bolifunctionario – the small-time, big-ticket racketeers with whom Hugo Chávez and his successor, Nicolás Maduro, have surrounded themselves, and who have become billionaires at the expense of Venezuelan voters. Now, let’s look at a few of these hooligans individually.

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Alejandro Andrade

Alejandro Andrade is an old pal of Chávez for whom an injury in a game of “chapitas” (a variation on baseball) turned into riches. In the game, Chávez threw a soda or beer cap which Andrade was supposed to hit with a broomstick; instead, the cap struck Andrade in the eye, half-blinding him for life. Chávez paid Andrade back by putting him in charge, in turn, of various public funds and, eventually, the National Treasury; while in these jobs, according to investigations by the FBI, DEA, SEC, and State Department, Andrade stole billions of dollars, which he spent on (among other things) a Florida mansion, a South Carolina farm, a Lear jet, some 150 thoroughbred horses, and a majority stake in a major TV channel.

To read through the list of Andrade’s ploys is to admire his ingenuity and versatility. For example, while head of the country’s Social Development Bank (a.k.a. Bandes), he made at least $66 million in kickbacks by selling Venezuelan bonds to a New York broker and buying them back at inflated prices. Andrade also put together a system that managed to provide funds for the ruling PSUV party while also enriching him and his confederates in the scheme. He’s so good at sponging up cash, indeed, that Chávez, just before his death, paid him the ultimate compliment – he wrote a letter placing his daughters’ future economic security in Andrade’s hands.

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Alejandro Betancourt, Pedro Trebbau López

Pedro Trebbau López and Alejandro Betancourt are the quintessential bolichicos – co-founders of Derwick Associates, a company that materialized out of thin air in 2007 and almost immediately began winning government contracts to build power plants, an activity in which neither Trebbau nor Betancourt had any expertise whatsoever. The firm is accused of having overbilled the government by some $3 billion and of paying at least $50 million in bribes, and together or separately its two principals own a Falcon plane, a Bell helicopter, a home in Miami, an office on Park Avenue, and a farm in Spain.

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Diosdado Cabello

Chávez crony Diosdado Cabello is President of the National Assembly, which he runs like a thug – silencing, intimidating, and even, on one occasion, ordering the beating of opposition legislators right there in the chamber. Known unaffectionately as “The Godfather,” he owns a slew of banks and insurance firms and also supposedly has his hand in some shady companies that run the Caracas ports. At last count, he was the defendant in at least 17 corruption cases, one of which accuses him of having received at least $50 million in bribes from Derwick Associates.

Also worth a mention is Cabello’s brother José David Cabello, who has served as head of the international airport in Caracas, Minister of Infrastructure, and President of the National Customs and Tax Administration (Seniat), without having a background in any of these fields.

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Rafael Ramírez

Rafael Ramírez held several high-level energy posts before serving briefly last year as Foreign Minister; he’s now UN ambassador. While head of the state oil firm, PDVSA, he ordered employees “to vote for Chávez or else.” With three cronies, he rearranged the processing of Venezuela’s oil income to make it utterly lacking in transparency, resulting in a system that one industry source called “rotten to the core” and that ultimately achieved the impossible: bankrupting the state oil firm of one of the world’s leading oil powers.

Then there’s Ramírez’s cousin Diego Salazar, who – thanks to a multimillion-dollar insurance policy Ramírez took out on PDVSA – went in a trice from being a lowly insurance salesman to being one of the richest men in the country, owning a private plane, a private orchestra of some 100 musicians, “almost all the apartments” in a Caracas luxury complex, and much else. He’s been investigated by the U.S. Senate for corruption – but it would take more than that to cramp his style.

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Tarek El Aissami

We’ve already mentioned Tarek El Aissami, governor of the state of Aragua and head of the ruling PSUV party. The American Enterprise Institute has called him “thuggish,” but this seems like a polite understatement. It may sound like a joke, but Aissami’s dad actually ran the Venezuelan branch of Saddam Hussein’s Baath Party, and Aissami himself – who was a college friend of Chávez’s brother – came to be known as Chávez’s personal link to Hezbollah, Hamas, and Islamic Jihad.

Aissami has funneled cash to these groups, and when he was head of the agency that produces national ID cards, he provided Venezuelan cover identities to some of their members. As if that weren’t impressive enough, he also recruited young PSUV members to train in Lebanon for guerrilla war against the U.S.

But aiding and abetting terrorism is just a sideline for Aissami, whose main activity, it seems, has been sponging up taxpayer money and laundering it through his “multilayered and vast network of shell companies,” the chart of which looks more complex than the organization of the U.S. government itself.

(Bonus factoid: Aissami’s brother Firaz is involved with drug trafficking and has over $21 million in a Swiss bank.)

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Wilmer Ruperti

Shipping magnate Wilmer Ruperti, who thanks to “illegal deals with corrupt thugs” became “the go-to guy for nearly all PDVSA-shipping needs,” provides a fine example of the cartoonish extent to which Venezuelan self-enrichment schemes can go: in order to fool a Russian firm into thinking it was chartering oil tankers to PDVSA, Ruperti set up “an elaborate network of shell companies,” giving one of them a name very close to that of PDVSA, and leased tankers from the Russian firm, then rented them to PDVSA at a hefty profit. Alas for him, U.S. and U.K. authorities got wind of his dodge and took him to court; in the U.K. case, he had to pay $59 million in damages. But he’s not suffering: he owns a bulletproof BMW, a jet, a veritable palace in Caracas, and a Miami Beach mansion that, on paper, is owned by (of all people) Gloria Estefan’s husband.

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Victor Vargas

Victor Vargas, who runs several banks and companies around the world, has long been known as the “Chávez Banker.” Translation: he’s said to have “made a backroom deal with Chávez’s government to handle some of the revolution’s murkier financial transactions.” As we’ve noted, Vargas may or may not own Cadena Capriles, Venezuela’s largest media conglomerate, which was purchased through a proxy on the island of Curaçao; if he does own it, moreover, he’s probably a front for the government, which has an interest in controlling as much of the nation’s media as possible. Vargas owns a major polo team, a stable of 60 ponies, a private fleet of jets, two yachts, a helicopter, homes in Europe, a huge estate in Venezuela, and mansions in Santo Domingo and Palm Beach.

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Luisa Ortega Díaz

Luisa Ortega Díaz is Venezuela’s General Prosecutor, a position she’s used to undermine media rights and to imprison journalists and politicians (notably opposition leader Leopoldo López). In 2009 she proposed a Media Crimes Law to curb “the irrational use of power by the media” and “regulate freedom of expression.” While ignoring the embezzlement by officials of truckloads of cars, motorcycles, computers, cameras, and other government-owned items, she’s used forged evidence to prosecute opposition legislators; and while threatening to “severely punish” so-called “hoarders” of basic foodstuffs – a widespread and thoroughly understandable phenomenon in Venezuela, where things are so screwed-up that you can’t be sure you’ll be able to buy bread, butter, or milk any time in the next few weeks – she’s been photographed shopping at high-end boutiques on the Rue Saint-Honoré in Paris.

All this, note well, is just a small sampling of the sleazy operators who make up the Maduro regime.

[NOTE: Corrected on December 22, 2015, to reflect the fact that Rafael Ramírez, at the time this post went up, was UN ambassador, not Minister of Finance.]