Moving money from Gibraltar to Santiago and to Washington via the Bahamas

PANORAMA has acquired a copy of the US Senate Report on the secret web of bank accounts held by Chilean dictator Augusto Pinochet. "He moved funds quickly and quietly over three continents," says the Report. Including Gibraltar. The Report names Spanish-owned Banco Atlantico as the Gibraltar connection in what is described as "a sad and sordid" story.

Gibraltar is featured in nine pages of the report, including the Table of Contents: "Moving money from Gibraltar to Washington to Santiago" and "Moving money from New York, the Bahamas and Gibraltar to Washington."

"THE MILITARY OFFICER"

Extracts from the Report: "On September 25, 1995, the military officer account accepted a $417,000 wire transfer from a Banco Atlantico Gibraltar account

"On February 22, 1996 the military officer account accepted a $225,985 wire transfer from a Banco Atlantico Gibraltar account.

transferred substantial sums of money to Pinochet accounts at Riggs Bank in the United States, totalling in excess of $5.8 million," it says.

In addition, it adds, records related to Banco Atlantico Gibraltar Ltd. were unavailable because, in November 2004, Banco Atlantico sold its Gibraltar branch to the European Financial Group (EFG) of Switzerland, and transferred all of its Gibraltar records to EFG. Banco Atlantico indicated that all of its Gibraltar staff switched employment to EFG as well, which meant that none of Banco Atlantico's current staff had personal knowledge of the Pinochet accounts in Gibraltar.

SECRECY LAWS

The US Senate Report goes on to say that Banco Atlantico and Banco de Sabadell fully cooperated with Subcommittee requests for documents and related information, providing all requested US. documentation. Citing bank secrecy laws, however, neither bank supplied any records from Banco Atlantico's overseas affiliates in Gibraltar, Madrid, and Zurich. Information about transactions involving these foreign affiliates were reconstructed from Banco Atlantico wire transfer records and from records produced by other financial institutions. In addition, the Subcommittee obtained information suggesting that the Banco Atlantico affiliate in Gibraltar may have had a single account opened in the name of Mr. Pinochet and his son, Marco Pinochet.

While limited documentation prevents a complete analysis of the Pinochet transactions involving Banco Atlantico, the evidence available to the Subcommittee indicates that, between 1981 and 2000, more than $5.8 million was transferred from Banco Atlantico's overseas affiliates to Pinochet-related accounts at Riggs Bank through 13 wire transfers and one cheque.

MOD in breach of TUPE, says Union

The TGWU says that after taking legal advice it is its view that the MOD has breached the law of Transfer of Undertaking Directive (TUPE) applicable to Gibraltar, following its contractorisation move.

The union is actively considering taking proceedings for an injunction to ensure that the MOD complies with the law. However, Gibraltar has colonial legislation that is hampering what it can do, as the British Government cannot be sued in the Gibraltar courts. The union is considering taking proceedings in the English courts and if appropriate in the Court of Human Rights.

The union remains opposed to contractorisation and will take legal and industrial action, They want the MOD to climb down from their high horse and negotiate with the union on the basis of the in-house proposals that were being considered in the recent past. They cannot have cheap labour, says the union.

IT seminar: ‘bringing Govt closer to the citizen’

An Information Technology seminar for Government officers is being held today at the John Mackintosh Hall. The seminar, entitled ‘Bringing Government Closer to the Citizen’, is being organised by the Ministry for Trade, Industry and Communications and the IT and Logistics Department.

The seminar will be officially opened by the Minister for Trade, Industry and Communications, Joe Holliday.

A series of presentations will be delivered at the seminar to provide an insight into the developments that are taking place in the field of Information Technology within the Government Service.

An outline will be given of the developments being put in place and of the services that will be provided.

These developments will allow Government to replace the existing manner of effecting a large tranche of Government business.

This plan will see various exciting and interesting innovations during the next three years.

A secure fibre-optic intranet is being created, which will provide a variety of services within Government departments.

A number of on-line “public counters” will be introduced where citizens or companies will be able to download Government forms and eventually access their records on-line.

Simultaneously, the Government of Gibraltar website will be given a facelift and improved to make it more user-friendly and to make navigation within the website easier.

Mr Holliday, said: “The Government is pursuing a twin-track strategy aimed at upgrading its approach to Information and Communications Technology and improving service to the public.

The two areas being targeted are E-Government and the Government website.

The expectation is that in the short to medium term more effective computerisation, more modern methods and more dynamic internal functions within the Government Service will deliver a more user-friendly interaction with the public and a simpler, faster and more efficient service to the public”.

Caruana upset that Spain blames Gibraltar for everything

The chief minister Peter Caruana has spoken of the inordinate desire in Spain to keep feeding wrong information about Gibraltar to Spanish public opinion.

And he said so during peak listening time on RNE radio yesterday.

The EU has not said that Gibraltar does not cooperate in the fight against money laundering. The image you paint of Gibraltar is false, he said, in the same way that the statement made in Spain that Gibraltar does not cooperate in the fight against money laundering is also false.

I would prefer it if, before making such false accusations, the Spanish government should limit itself to provide us with proof and with evidence.

All requests from Spain have been attended to, and right now there is only one being considered.

That is why Mr Caruana could not understand why a senior representative of the Spanish government (the attorney-general) should say that the situation in Gibraltar is worrying because it does not cooperate in he fight against money laundering.

There could be companies in Gibraltar connected with the Marbella development, but from the information appearing in the Spanish press the majority are Spanish and of other nationalities. But if there are any in Gibraltar it would have to be determined if what they do are offences or not.

And if there are any, he added, I am sure that Spain will request legal assistance through the normal channels.

UPSET

Mr Caruana was upset that with hundreds and hundreds of companies involved, all that was projected centred on the possibility of those from Gibraltar.

Gibraltar was blamed for everything!

The 'White Whale' operation concerns banks, lawyers, companies etc which are Spanish and from elsewhere - but it is the possible implication of Gibraltar that is the day's news.

Spain should cease using Gibraltar as an excuse to cover up the reality of the situation that exists in Spain today. After all, such operations are in Spain, not in Gibraltar, Turkey or Russia!

Meeting with Hoon today

The chief minister left Gibraltar last night for a meeting with defence secretary Geoff Hoon this morning.

The meeting is at Mr Caruana's request to cover the proposed MOD cuts and related matters.

He is accompanied by chief secretary Ernest Montado. They return this evening.

TUPE rules apply to transfer of MOD jobs?

The question answered by MOD Minister Adam Ingram in the House of Commons regarding whether TUPE rules apply to the transfer of jobs planned by the Ministry of Defence in Gibraltar is not the issue as far as the Opposition is concerned.

They say: From the beginning the MOD have been arguing that under EU law bringing in a contractor to replace MOD workers requires that contractor to offer the existing workers their existing jobs on their existing pay and conditions. Nobody has ever suggested that it would be otherwise.

"Of course, the MOD has made quite clear from the beginning that any contractor giving employment to their workers on existing pay and conditions would waste no time in

taking steps to reduce the number and worsen the conditions in order to be able to provide a cheaper service for the MOD.

Therefore the terms that apply at the point of the transfer are totally irrelevant," says the Opposition.

They add: Moreover, the MOD made clear in its original briefing that the nationality both of the contractor and of future occupants of those jobs was a totally open question. For his part, Mr Caruana said in the House of Assembly that the Government was taking legal advice as to whether transferring employees and their jobs only, but not the assets or the premises where they work, meets the criteria to constitute a transfer of undertakings. As far as the Opposition is aware, in the United Kingdom there have been many such transfers and nobody has suggested that it does not meet the definition of a transfer of undertakings.

However, the Opposition wishes to make clear that all these other issues cally peripheral, since even if they were put right, the fundamental issue would remain. The plain fact is that the only way that the MOD is going to provide secure employment on civil service pay and conditions, based on parity with the UK and with 90% of the workforce being Gibraltarian is if the work continues to be done by direct employment and not by contractors or sub-contractors.

Whether the way they want to do it is the same as UK or different does not alter the question of principle at the heart of this issue one way or the other. For the Opposition the principle at stake is a simple and straightforward question. If the Ministry of Defence want to remain in Gibraltar they have to provide reasonably paid jobs with civil service pay and conditions for Gibraltarians, "otherwise we are perfectly entitled to question why we want them here in the first place," they say.

Companies on verge of criminality take refuge in Gibraltar, says Spain

by PANORAMA reporter

The Spanish attorney-general Candido Conde-Pumpido has confirmed that he did say that Gibraltar does not cooperate on criminal matters. In fact he thinks that companies on the verge of criminality take refuge in the Rock.

At about 7pm on Tuesday, the Gibraltar Government issued a press release saying that if Sr Pumpido had made such a statement about the lack of cooperation, it was false.

The government went on to explain how Gibraltar adheres to its international obligations, such as responding positively "to each and every request from Spain" for judicial or police assistance that complies with the relevant international treaty.

The Gibraltar statement added: "As all of this must be well known to the Spanish attorney-general, the Gibraltar government assumes that the Spanish attorney-general did not make the statement attributed to him. If the opposite were confirmed, the Gibraltar government will lodge a protest with the Spanish government."

Three hours later, Sr Pumpido was being interviewed on Spanish radio when he was told that he had presumably heard that the Gibraltar government had announced that they were going to protest about the non-cooperation statement he had made.

As attorney-general I limit myself to the information supplied to me by my subordinates, by those specialised in such matters, such as the anti-corruption department who have underlined the difficulties that are encountered when we come up against a fiscal paradise, with an area where the ordinary systems of cooperation that exist in other parts of the EU "do not function."

He referred to banking secrecy.

The Spanish attorney-general added that he had been responding to a question asked about cooperation.

The police, when fighting crime in Malaga, the Costa del Sol, southern Spain, well know that Gibraltar has a specific system.

In great measure, companies that are on the verge of criminality take refuge in Gibraltar, he added.

We have to think that this special situation has to come to an end, he told Onda Cero.

Estrella was more interested in having his photo taken than hearing what we had to say, says group

Last Friday, the VOGG held a vigil outside 6 Convent Place during Rafael Estrella's call on the Chief Minister.

Shortly after his arrival (through the back-door), The VOGG was advised that the Spanish MP wished to meet. This was most welcome.

When de did, unfortunately and with hindsight, it turned out to be merely an opportunity for a PR photo-shoot, with no interest whatsoever in hearing what The Group had to say.

Notwithstanding, he was told: 'we are glad you have come and thank you for it. After all, you are the most prominent Spanish politician to visit The Rock since Moran. However, it is fine you hear and listen to what the 'llanitos' have to say, but it is high time you and others like you got to grips with and understood the realities of Gibraltar and its People."

HASTY GETAWAY

Without comment and observing a placard, which read "si Caruana no tiene 'veto', este pueblo sí que tiene el veto', he made a hasty and polite getaway.

The VOGG adds in a statement: There was a comment in Europa Sur that The VOGG was inopportune in choosing 11-M for a protest. By the same criteria, was Sr. Estrella wise' in picking such a day?

When The VOGG was advised of Snr. Estrella's intention in meeting its members, they enquired when and where the minute's silence would be observed, so they could join in. Whilst promised to be informed, this did not materialise and it was only, upon his departure, that they found out that it had taken place on the balcony above.

Whilst fully aware of the sensitivity of 11-M, thus The VOGG's willingness to partake in the ceremony, it is a bit 'fresh' on the part of the Spanish media to talk about sensitivities. The VOGG reserves its right to demonstrate peacefully and with dignity when it deems appropriate, noisily on occasions and with decorum on others, as was the case on Friday. Many will recall that it was The VOGG with The GWA that organised a remembrance ceremony in the aftermath of the fatal day, they say.

MATURE

Once again, The VOGG says it wants to remind Sr. Estrella that Gibraltar is a mature society and his 'talante' will not convince the majority of Gibraltarians to go down his 'path'. A Spanish Gibraltar 'a las buenas' is no different to one 'a las malas'. His underlying aspirations are an affront to most here, irrespective how 'sweetened' his message, said Paul TUNBRIDGE and Julio PONS, spokesmen for THE VOICE OF GIBRALTAR GROUP.

Danger of Drugs

The Crime Prevention & Reduction Unit from the Royal Gibraltar Police yesterday delivered a talk to all Year 7 pupils at St. Anne's Middle School on the Dangers of Drug. This is the third middle school this year, which has had a similar talk delivered after Bishop Fitzgerald and St Joseph's Schools.

This initiative commenced last summer and forms part of the Government's 5 Year Strategic Plan under 'Education'. The talk was delivered by Sergeant Goodman and was also attended by the Government's Drug Co-ordinator Mr. J. Montegriffo who also addressed the pupils.

After the talk, the pupils participated in a question and answer session on their concerns on the dangers of drugs and its repercussions and problems encountered later in life.

Drug samples and literature was displayed. Pupils also had the opportunity to view the display of numerous samples of drugs and collect literature with a view to promote awareness and enhance their knowledge on the 'Dangers of Drugs'. The message delivered was... 'It is an individual decision'.

Spanish Govt attacks Gibraltar for ‘not cooperating’ on money-laundering

The Spanish government has mounted an attack against Gibraltar for allegedly not cooperating with matters concerning money laundering.

The accusations came from none other than the Spanish attorney-general Candido Conde-Pumpido, with the interior minister Jose Antonio Alonso backing him.

This is a top level attack from Spain, to which can be added the accusations made last week by the Spanish minister of justice about Gibraltar's alleged illicit activities.

It shows that in the upper echelons of Spain's three principal departments involved in criminal matters there is unanimity about Gibraltar.

WORRYING

Conde-Pumpido has described the Gibraltar situation as "worrying" because "it does not cooperate in the fight against money laundering."

He stressed the need to act politically to bring offshore centres to an end.

The Spanish attorney-general was referring to the crackdown on money-laundering in Marbella, which has made headline news. What has so far happened is "the tip of the iceberg," he said.

He was asked about the offshore companies in Gibraltar related to the Marbella investigation and if the ministry had enough resources to get to those behind behind these companies.

He said there were difficulties.

He said there was no sense that offshore enclaves should end being a platform for money laundering.

Information released to the Spanish media claims that when investigating those who are behind some of the companies from Gibraltar allegedly involved in the Marbella scandal, 'nominee' companies emerge.

Meanwhile, interior minister Alonso backed the remarks made by the Spanish attorney-general. Candido-Pumpido is well informed, given his responsibilities, said his colleague.

Money laundering is the basis of organized crime, he said, and one had to fight it.

He added that Britain and Spain and the rest of the EU should cooperate in a decided manner to face this great social and political problem.

Alonso was speaking in Granada were a number of EU internior ministers have been in conference.

He said that he had offered all the information available about the Marbella investigation to the UK home secretary Clarke.

When asked, Clarke limited himself to congratulating Spain and its police for the Marbella operation, and would carefully consider what the attorney-general had said to see how they could cooperate.

GIBRALTAR MEETING

Sources quoted by Spanish reports add that Alonso and Clarke met separately to talk about the Marbella operation and the implication of Gibraltar as an offshore centre, what the Spaniards describe as "a fiscal paradise."

NO REQUESTS

In Gibraltar, the RGP said that no official requests whatsoever had been received from Spain.

Gibraltar Government expresses surprise

Last night the Gibraltar Government issued the following press relase.

‘The Gibraltar Government notes with surprise the statement attributed to the Spanish Attorney General that Gibraltar does not co-operate in the fight against money laundering. If that statement has been made, it is false.

Gibraltar’s anti-money laundering legislation (in addition to being much stricter than Spain’s) complies with all European and international agreements, as do our judicial, police and administrative procedures for enforcing it.

It is also the case that Gibraltar responds positively to each and every request from Spain for judicial or police assistance that complies with the relevant international treaty.

As all of this must be well known to the Spanish Attorney General, the Gibraltar Government assumes that the Spanish Attorney General did not make the statement attributed to him. If the opposite were confirmed, the Gibraltar Government will lodge a protest with the Spanish Government.’

Man suffering from four strokes caught in hospital beds shortage

A man who has suffered a total of four strokes found himself caught in the continuing shortage of beds at the new hospital.

With the medical side saying one thing and the administration another, his son said he would 'not move an inch' until his father was admitted to hospital.

He later approached the Opposition to highlight the case.

Mr Charles Reyes' elderly father is a resident of the Jewish Home and has been awaiting a move to Mount Alvernia.

His father had already suffered three strokes in the past.

On Monday the doctor was called to the Jewish Home following a deterioration in his condition which was diagnosed as a stroke.

He was referred to the hospital, on the basis that he could no longer be properly looked after at the home.

Mr Reyes arrived at the Europort hospital before the ambulance at 9pm.

A statement says:

* Mr Reyes was first told that it was preferable not to admit his father as he could contract an infection in the hospital.

* An hour later, at about 10pm, he was told that the doctor at Accidents and Emergency wanted to speak to him.

The doctor told Mr Reyes that if it were up to him he would admit his father but the administration had said that his father could not stay because there were no beds.

* Mr Reyes then had a lengthy argument with the administration in order to persuade them to admit his father into the hospital.

He maintained that his father needed medical treatment and he was not moving one inch.

* After a further two hour wait, at about midnight, Mr Reyes' father was finally admitted to a private room in the Accidents and Emergency department itself.

Mr Reyes has already made an official complaint to the hospital administration.

SERIOUS

The Opposition says it considers that the case of Mr Reyes raises a number of serious issues. "Medical staff should take medical decisions based on the medical needs of their patients, and not on administrative constraints which are imposed upon them by the administration," they say.

And add: Moreover, it is a disgrace that the shortage of beds should continue to plague the Europort hospital so soon after it has opened.

Gibraltar linked to Marbella money-laundering scandal

Property investment seen by police as money-laundering vehicle

Gibraltar has been linked to a major money-laundering crackdown in Marbella. Reports speak of a complex web of over a thousand companies, many of which registered in Gibraltar.

Under the codename of 'Ballena Blanca' (White Whale), Spanish police have already arrested 41 persons in the Costa del Sol, seized 251 properties and 42 luxury cars as well as two aircraft at Malaga airport. Bank accounts have been blocked affecting 30 million euros. A yacht was seized in Puerto Banus.

Two complete housing complexes, one of which is currently being sold and promoted, have also been mentioned. Reports said one of them is in La Linea.

Arrests have taken place at a leading Marbella lawyer's office, where many of the companies are said to have been registered. Most of their clients are British.

Those arrested include Spaniards, Moroccans, French, Russian, Ukrainian and Finnish.

A Russian oil company has also been mentioned, but they have denied any involvement.

Police action took place throughout the Malaga province, with swoops in Almeria and Cadiz provinces. Sotogrande has been named.

A Spanish police source said this was the tip of the iceberg, and more developments are expected.

Among countries taking a special interest in the matter are Britain, France, Holland and Russia.

The operation was mounted after a French request for information about businesses carried out by a drug dealer in Spain; this was in September 2003. And Spanish police, who are going through all the information now obtained, including 22 computer hard disks, say the investigations could last a year.

At least 9 gangs are said to be involved in the money-laundering operations, which exceed 250 million euros at a conservative police estimate. Spanish police claim that those implicated were involved in money laundering, prostitution, arms deals etc.

A web of companies had been created at the service of these organizations, says a statement from Spanish police.

Companies owned other companies to prevent easy identification of ownership, with many ending in nominee companies. When searching ownership, many 'disappeared' in Gibraltar.

Some of those arrested in Spain are said to be representatives of organized crime syndicates internationally.

At the centre of it all was the money-laundering operations principally through the properly market, which is described as being an ideal and easy method for illegal transactions.

In Marbella: Europe's biggest money-laundering scandal

The Spanish are recognising that the biggest money-laundering scandal has surfaced in Marbella and other parts of the Costa del Sol, popularly dubbed the Costa del Crime.

Interpol points at over 500 organized gangs operating in the Marbella area, which has raised eyebrows in Spain. Special police units have been set up, resulting in the action that has taken place over the weekend.

The finger is quickly pointed at Gibraltar. Official Spanish policy is that the nearness of an offshore centre like Gibraltar and a hashish-producing country Iike Morocco facilitate the development of Marbella as an area for illicit operations.

Spanish commentators over the weekend have given the impression that the Rock is the root of all evil.

A radio discussion on Monday said there were 80,000 companies in Gibraltar, as if every company in Gibraltar was involved in wrong-doing. A lot of nonsense indeed.

Further, they mix everything and do not distinguish between local companies and offshore companies.

They should know by now that Gibraltarians are not allowed to own offshore companies in Gibraltar, and that such companies do not trade in Gibraltar itself.

Certainly, there is a widespread concern in Gibraltar, not about laxity for local companies, but of over-regulation. And not just as regards companies, but in many other areas of business which unfairly affect the time businesses

Have available to promote their businesses, without having to waste so much time in a mountain of bureaucracy.

The secret is out!

So, the secret is out! Former GSD hopeful Peter Montegriffo is the secretary of an association in La Linea which promotes the activities of the Spanish political party PSOE.

Mr Montegriffo is known to have been active in the 'Mar del Sur' association which is the conduit for sending PSOE politicians to the Rock, as was the case last week of Rafael Estrella.

Indeed Sr Estrella is 'socio de honor' of the said association and was at a La Linea restaurant during his visit. So was Mr Montegriffo as the picture shows.

And other PSOE stalwarts included Senator Jose Carracao, Campo MP Salvador de la Encina and Miguel Tornay, the PSOE secretary-general in La Linea.

At the end of the dinner Mr Montegriffo made a presentation to Sr Estrella.

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