Behind the Gulf scandal

The Shocking Trigger Behind Today's Gulf Scandal: Qatar Paid Al-Qaeda, Iran $1BN In Hostage Deal

Zero Hedge,

5 June, 2017

The FT has unveiled what its believes is the key trigger behind the shocking overnight collapse in diplomatic relations between Qatar and its Gulf neighbors. 

According to the FT, the catalyst that forced the Saudis and their allies to unveil the cut in diplomatic and economic ties, is that Qatar allegedly paid up to $1 billion to Iran and al-Qaeda affiliates "to release members of the Gulf state’s royal family who were kidnapped in Iraq while on a hunting trip, according to people involved in the hostage deal"; the secret deal was allegedly one of the triggers behind Gulf states’ dramatic decision to cut ties with Doha.

The details of the payoff: "around $700m was paid both to Iranian figures and the regional Shia militias they support, according to regional government officials. They added that $200m to $300m went to Islamist groups in Syria, most of that to Tahrir al-Sham, a group with links to al-Qaeda."

A regional Arab official said the total paid to jihadi groups was closer to $300m. “So, if you add that up to the other $700m they paid to Iran and its proxies, that means Qatar actually spent about a billion dollars on this crazy deal,” he said.

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The Iraqi Shia militia commanders in Iraq, all from hardline Iranian-backed groups, said that, to their knowledge, Iran had obtained around $400m after giving them a payment they would not disclose. They agreed to share some details because they were unhappy about their share of the payment.

 “They [the Iranians] took the lion’s share,” said a member of one of the Iranian-backed Shia militias in Iraq. “That’s caused some of us to be frustrated, because that was not the deal.”

The "ransom payments are the straw that broke the camel’s back,” said one Gulf observer.

Not to be confused with the Obama administration secretly airlifting crates full of $1.7 billion in cash to Tehran to release five US hostages held by Iran, the FT writes that commanders of militant groups and government officials in the region told the Financial Times that "Doha spent the money in a transaction that secured the release of 26 members of a Qatari hunting party in southern Iraq and about 50 militants captured by jihadis in Syria."

By their telling, Qatar paid off two of the most frequently blacklisted forces of the Middle East in one fell swoop: an al-Qaeda affiliate fighting in Syria and Iranian security officials.

If nothing else, at least Qatar got a better bang for the physical buck, at $38 million per hostage, compared to the $340 million the Obama administration paid for the five US hostages released by Tehran.

While there is no official evidence, the FT adds that the deal, which was concluded in April, heightened concerns among Qatar’s neighbours about the small gas-rich state’s role in a region plagued by conflict and bitter rivalries, which however is at least somewhat confusing: after all it was well-known since the Podesta emails that even the US state department had confirmed that both Saudi Arabia and Qatar were the two primary funders of the Islamic State and various Jihidaist groups in the region. Recall from our October 2016 post:

In a leaked email sent on August 17, 2014 by Hillary Clinton to her current campaign manager, John Podesta, who back then was counselor to Barack Obama, she admitted that Qatar and Saudi Arabia "are providing clandestine financial and logistic support to ISIL and other radical Sunni groups in the region."

The email, which was sent just days after the US launched it "temporary" air campaign in Syria, which has now extended over two years, represents an eight-point plan laying out ideas how to defeat ISIS in Iraq and Syria. Clinton’s email said that the United States should engage in "military operations against these very irregular but determined forces" by "making proper use of clandestine/special operations resources, in coordination with airpower, and established local allies" such as Kurdish forces.

Having confirmed the role of Qatar and Saudi Arabia, Hillary then states that "we need to use our diplomatic and more traditional intelligence assets to bring pressure on the governments of Qatar and Saudi Arabia" and recommends to step up US commitment to the Kurdish Regional Government or KRG. "The Qataris and Saudis will be put in a position of balancing policy between their ongoing competition to dominate the Sunni world and the consequences of serious U.S. pressure.  By the same token, the threat of similar, realistic U.S. operations will serve to assist moderate forces in Libya, Lebanon, and even Jordan, where insurgents are increasingly fascinated by the ISIL success in Iraq."

In any case, last year's revalation appears to have been "news" to Saudi Arabia - the other named source of funding to ISIS, and on Monday, Saudi Arabia, Egypt, the United Arab Emirates and Bahrain took the extraordinary step of cutting off diplomatic ties and transport links to Qatar, alleging the country fuels extremism and terrorism.“

The FT further notes that "Doha denies it backs terrorist groups and dismissed the blockade by its neighbours as “founded on allegations that have no basis in fact”. It said it could not immediately respond to a request for comment on the hostage deal. But a person close to the Qatari government acknowledged that “payments” were made. The person was unaware of the amounts or where the money went."

Doha has a history of reaching out to all kinds of controversial groups, from rebels in Sudan’s Darfur region to the Taliban in Afghanistan and Hamas in Gaza. Qatar touts itself as a neutral player that can act as an intermediary in regional conflicts. But its critics, notably Saudi Arabia and the UAE, allege it also uses such interventions to play both sides and fund radical Islamist groups, most recently in Libya and Syria. And to Doha’s critics, the hostage deal was further evidence of that role.

In an amusing twist, one FT source - a Syrian opposition figure who has worked with an al-Qaeda mediator on hostage swaps in Syria. - adds that "if you want to know how Qatar funds jihadis, look no further than the hostage deal.... And this isn’t the first — it is one of a series since the beginning of the war."

Those who spoke to the FT said the deal highlighted how Qatar has allegedly used hostage payments to bankroll jihadis in Syria. But to its Gulf neighbours, the biggest issue is likely to be the fact that Doha could have paid off their main regional rival, Iran, which they accuse of fuelling conflicts in the Arab world.

This particular saga began when an Iranian-backed Iraqi Shia militia, known as Kata’eb Hizbollah, kidnapped the Qataris in December 2015. Three Iraqi militia leaders say the hostages were held in Iran.

Kata’eb Hizbollah is an Iraqi group but it is seen as having links with Iran’s main regional proxy, Hizbollah, the Lebanese militant group. The latter is helping Iran back Bashar al-Assad, the Syrian president, in his country’s six-year conflict.

It gets better: the hostage transaction was also linked to a separate agreement, signed in March 2017, to facilitate the evacuation of four mutually besieged towns in Syria — two surrounded by jihadi forces and two besieged by Shia militias — according to the FT's sources: "Syrian rebels and diplomats." One western diplomat said the arrangement provided Qatar the “cover” to finance the hostage deal.

“Iran and Qatar had long been looking for a cover to do this [hostage] deal, and they finally found it,” he said.

According to two opposition figures with close contact with the groups paid, Qatar used the evacuation arrangement to pay $120-$140m to Tahrir al-Sham. Another $80m, they said, went to the Islamist group Ahrar al-Sham. “The Qataris pay anyone and everyone, to what end? They have only brought about our ruin,” said a Syrian rebel commander, who gave details about the payments but asked not to be identified.

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Going back to our analogy of Obama dumping crates of cash - anywhere between $400 million and $1.7 billion - in Iran, it appears this time was not that different:

Another confusing chapter of the deal is that Haidar al-Abadi, Iraqi prime minister, said in April his government had seized hundreds of millions of dollars, which Iraqi officials said arrived on Qatari planes “illegally”. It is not clear if this is money is part of the sums mentioned above, or an additional amount.

The punchline: “The money all came in suitcases, can you imagine this?” said one senior official.

And while Qatar has now been scapegoated for funding Al-Qaeda and ISIS, something most have known for years, a question emerges: does this mean that Saudi Arabia - another chronic supporter of terrorism in the region and around the globe - is now off the hook. That would be problematic in light of Saudi Arabia's own on the record admission that it itself created Daesh, or ISIS, which however it allegedly did only in response to Obama's disastrous policy in the region. From the Financial Times:

After the Iraqi city of Mosul fell to a lightning Isis offensive in 2014, even the late Prince Saud al-Faisal, the respected Saudi foreign minister, remonstrated with John Kerry, US secretary of state, that “Daesh [Isis] is our [Sunni] response to your support for the Da’wa” — the Tehran-aligned Shia Islamist ruling party of Iraq.

Diplomatic Spat: Several Gulf States cut ties with Qatar for allegedly ‘supporting terrorism’

RT

The Middle East has descended into a huge diplomatic row. Four Gulf countries: Saudi Arabia, Egypt, Bahrain and the UAE have severed diplomatic ties with Qatar. While Saudi Arabia and Bahrain have also closed their borders with the country. They accuse Doha of supporting terrorism and interfering in the internal affairs of Arab states.

GCC rift: Five nations cut diplomatic ties with Qatar

al-Jazeera

The Qatari government says it regrets the unjustified decision by four countries to cut diplomatic ties.

Bahrain, Egypt, Saudi Arabia and the UAE are also imposing an air, sea, and land embargo.

The Saudis accuse Qatar of supporting extremism and radicalism as well as media incitement, which Qatar denies.

Al Jazeera's Hashem Ahelbarra explains.

Qataris rush to stock up on food ahead of price hike as only land border shut

Residents of Qatar have rushed local supermarkets to stock up on food after Saudi Arabia closed the only land border with the emirate, Doha News reports.

Since early morning residents were cramming shopping carts with milk, water, rice, eggs and other essential goods at Qatari grocery stores.

“I’ve never seen anything like it – people have trolleys full of food and water,”said one of the customers in Villaggio mall, as quoted by the media.

The rush followed the earlier announcement by Riyadh that the border between Saudi Arabia and Qatar – the only ground link for Qatari imports - was closed. Nearly 40 percent of Qatar's food comes via this land route.

As a desert state, Qatar produces less than ten percent of the food consumed by its people, according to research last year. In 2012, the country imported 99.5 percent of cereals, 83.4 percent of vegetables, 86 percent of fruit, 93.6 percent of meats, 95 percent of beans, and 100 percent of edible oil.