The Center for Grassroots Oversight

This page can be viewed at http://www.historycommons.org/context.jsp?item=a1296alfadlbusinesses


Context of 'December 1996-January 1997: Former Al-Qaeda Financial Officer Completely Exposes Al-Qaeda Financial Network, but US Takes No Action'

This is a scalable context timeline. It contains events related to the event December 1996-January 1997: Former Al-Qaeda Financial Officer Completely Exposes Al-Qaeda Financial Network, but US Takes No Action. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.

Jamal al-Fadl testifying in a courtroom. Because his identity has been kept secret, his face has been blocked out.Jamal al-Fadl testifying in a courtroom. Because his identity has been kept secret, his face has been blocked out. [Source: CNN]Jamal al-Fadl, an al-Qaeda operative from al-Qaeda’s first meeting in the late 1980s until 1995, tells the US everything he knows about al-Qaeda. Before al-Fadl’s debriefings, US intelligence had amassed thick files on bin Laden and his associates and contacts. However, they had had no idea how the many pieces fit together. But an official says. “After al-Fadl, everything fell into place.” (Miller, Stone, and Mitchell 2002, pp. 154-65) The New Yorker will later call al-Fadl “arguably the United States’ most valuable informant on al-Qaeda.” FBI agent Dan Coleman will later say on al-Fadl, “He’s been very, very important to us. When it comes to understanding al-Qaeda, he’s the Rosetta Stone.” FBI agent Mike Anticev will similarly say, “He spoke to us in great detail, and everything that he told us panned out.” CIA officials debrief al-Fadl for a month and a half. Then the CIA hands him, and transcripts of all their interviews with him, over to the FBI. (Mayer 9/11/2006) Coleman and US prosecutor Patrick Fitzgerald interrogate al-Fadl at a US military base in Germany for months. (Lance 2006, pp. 261) Roughly between November 1996 and April 1997, al-Fadl tells the FBI about:
bullet The historical background of al-Qaeda. Al-Fadl was one of al-Qaeda’s founding members (see August 11-20, 1988).
bullet The structure of al-Qaeda and its leadership composition.
bullet Al-Qaeda’s objectives and direction.
bullet Its financial infrastructure and networks. Al-Fadl has extensive knowledge of this because he worked as an al-Qaeda financial officer (see December 1996-January 1997).
bullet Its connections and collaboration with other terrorist groups and supporters.
bullet Its activities against US soldiers in Somalia (see October 3-4, 1993).
bullet Its activities in Bosnia. Al-Fadl was sent there on several missions (see Autumn 1992 and Autumn 1992).
bullet The Al-Kifah Refugee Center, al-Qaeda’s most important charity front in the US. Al-Fadl worked there in the 1980s (see 1986-1993).
bullet Bin Laden’s efforts to acquire weapons of mass destruction. Al-Fadl was personally involved in an effort to buy uranium for al-Qaeda (see Late 1993). (9/11 Commission 7/24/2004, pp. 479)
bullet Bin Laden’s plans to attack either inside the US or US embassies (see Late 1996).
Al-Fadl continues to help US intelligence until current day. For instance, in 2000, he will help US officials capture his brother-in-law, Mohammed Suliman al-Nalfi, who is said to be close to Ayman al-Zawahiri. Al-Nalfi will eventually be sentenced to ten years in prison in the US. Al-Fadl will have no knowledge of the 9/11 plot, but he will continue to identify captured al-Qaeda operatives after 9/11. (Mayer 9/11/2006) Interestingly, al-Fadl, a Sudanese citizen, will later claim that he worked with the Sudanese intelligence agency with the direct approval of bin Laden. (Day 2. United States of America v. Usama bin Laden, et al. 2/6/2001)

The State Department issues a fact sheet on bin Laden, calling him “one of the most significant financial sponsors of Islamic extremist activities in the world today.” The text ties bin Laden to funding specific attacks, such as the attempt to kill dozens of US soldiers in Yemen in 1992 (see December 29, 1992). The fact sheet is also mentions the term “al-Qaeda,” leading to the first media reports using that term the next day (see August 14, 1996). The fact sheet also contains details about bin Laden’s finances, such as the allegation that he co-founded the Al-Shamal Islamic Bank in Sudan in 1990 with a group of wealthy Sudanese and capitalized it with $50 million of his fortune. (US Department of State 8/14/1996; Gerth and Miller 8/14/1996) Much of this information appears to come from al-Qaeda defector Jamal al-Fadl. The CIA had just finished debriefing him weeks before (see June 1996-April 1997).

Jamal al-Fadl, a highly-trusted informant who recently defected from al-Qaeda to the US (see June 1996-April 1997), is debriefed by FBI officials about al-Qaeda’s finances. (9/11 Commission 7/24/2004, pp. 497) According to the New Yorker, al-Fadl “provided a surprisingly full picture of al-Qaeda, depicting it as an international criminal network intent on attacking the United States. Al-Fadl said that he had handled many of al-Qaeda’s financial transactions after bin Laden left Afghanistan and moved the hub of his operations to [Sudan], in 1992. In this role, al-Fadl had access to bin Laden’s payroll and knew the details of al-Qaeda’s global banking networks, its secret membership lists, and its paramilitary training camps in Afghanistan, one of which he had attended, in the late eighties.” (Mayer 9/11/2006) For instance, al-Fadl reveals that bin Laden co-founded the Al-Shamal Islamic Bank in Sudan and capitalized it with $50 million. The US will make this allegation public shortly after al-Fadl is debriefed by the CIA (see August 14, 1996). Al-Fadl will further reveal that he and several other al-Qaeda operatives had accounts at the Al-Shamal Bank to finance their militant activities. (Crewdson 11/3/2001) Al-Fadl also reveals that bin Laden owns a number of businesses in Sudan, including:
bullet The El-Hijra Construction and Development company, which builds a new airport at Port Sudan and a long highway linking Port Sudan to capital of Khartoum.
bullet The Taba Investment Company, which deals in global stock markets and currency trading.
bullet The Wadi al-Aqiq import/export company, which serves as the parent body for most of the other companies.
bullet The Ladin International import-export company. In 1995, the FBI discovered links between this company and the Bojinka plot in the Philippines (see May 23, 1999).
bullet And other businesses, including several farms, a tannery, and a trucking company. Al-Fadl reveals that some of the farms double as training camps.
Furthermore, he gives details of various bin Laden-linked bank accounts in Britain, Austria, Sudan, Malaysia, Hong Kong, and the United Arab Emirates. Even though bin Laden leaves Sudan in 1996, most of his businesses there will continue to operate under his ownership. The US will not take any action against these businesses before 9/11 (see March 16, 2000). (Moor 9/26/2001; Callinan 10/7/2001)

It has been widely assumed in media reports that US intelligence did not connect al-Qaeda leader Hambali to the Bojinka plot (see January 6, 1995) before 9/11. However, the 9/11 Commission will mention in a footnote, “Hambali also was one of the founders of Konsonjaya, a Malaysian company run by close associate of Wali Khan [Amin Shah]. FBI report, Manila air investigation, May 23, 1999.” (9/11 Commission 7/24/2004, pp. 489) The Christian Science Monitor will later note, “Konsonjaya was not just supplying money. It also coordinating the Bojinka plotters” (see June 1994). (Murphy 2/14/2002) In the spring of 1995, Philippine Colonel Rodolfo Mendoza gave the US a chart he made of the Bojinka plotters, and Konsonjaya was centrally featured in it (see Spring 1995). He later said, “It was sort of their nerve center.” (Murphy 2/14/2002) Shortly after Ramzi Yousef’s Manila apartment was broken into, documents found there connected Konsonjaya with the “Ladin International” company in Sudan, an obvious bin Laden front. An FBI memo at the time noted the connection. (Lance 2003, pp. 303) Hambali’s photograph was also found on Yousef’s computer. (Pereira 2/2/2002) In 1996, the company’s records were introduced as evidence in a public trial of some Bojinka plotters, and in 1998, Khalid Shaikh Mohammed was nearly caught in Brazil while using Konsonjaya as his business cover (see June 1998). So it’s not clear why it took the FBI four years to learn about Hambali, but that still means they were aware of who he was prior to the January 2000 al-Qaeda summit in Malaysia attended by Hambali and two 9/11 hijackers (see January 5-8, 2000). But apparently the connection will not be made.

Intelligence Newsletter reports that a number of Osama bin Laden-owed businesses in Sudan are still operating and still controlled by bin Laden. The report specifically mentions Wadi al-Aqiq, El-Hijra Construction and Development, Taba Investment Company, and the Al-Shamal Islamic Bank. Bin Laden’s control of all these businesses were revealed in detail to US intelligence by al-Qaeda informant Jamal al-Fadl several years earlier (see December 1996-January 1997). The report notes that both Mahfouz Walad Al-Walid and his cousin-in-law Mohamedou Ould Slahi, both known al-Qaeda leaders, were reportedly employed in recent years by the El-Hijra company. The report further notes that money for bin Laden “pours into accounts at branch offices of Al Taqwa [Bank] in Malta,” Switzerland, and the Bahamas. Businesses and charities supporting bin Laden “are thriving around the world without any real curb on their operations” because “some US and European agencies hunting him seem to lack zeal” in stopping him. “To be sure, if journalists can track down bin Laden’s friends without too much trouble it can be imagined that law enforcement and intelligence agencies have long found the same connections. Recent anti-terrorism history has shown that when the authorities really want to crack down on an organization they cut off its financial and logistic roots. So why are bin Laden’s backers prospering when the world’s most powerful anti-terrorist organizations are chasing him?” (Intelligence Newsletter 3/16/2000)

In September 2002, the Washington Post reports that European, US, and Pakistani investigators believe that al-Qaeda and the Taliban have secretly shipped large quantities of gold from Pakistan to Sudan in recent weeks and months. Disguised boxes of gold are taken by small boat from Karachi, Pakistan, to Dubai, United Arab Emirates, or Iran, and then flown to Khartoum, Sudan. European officials claim that some of the chartered planes used to fly the gold and other commodities are linked to Victor Bout, the world’s largest illegal arms dealer. (Farah 9/3/2002) Bout worked extensively with the Taliban before 9/11 (see October 1996-Late 2001), but reportedly began working with the US after 9/11 (see Shortly After September 11, 2001). So if these various allegations against Bout are true, it means he would be working with the US and the Taliban and al-Qaeda at the same time. European and US intelligence sources say Sudan may have been chosen because Osama bin Laden used to live there and still retains business contacts there. The Taliban kept most of their money in gold when they ruled Afghanistan. Large amounts of gold were also apparently shipped out of Afghanistan shortly before the Taliban were driven from power there in late 2001. (Farah 9/3/2002) The US learned of bin Laden’s extensive financial network in Sudan several years before 9/11, but apparently never shut it down, even after 9/11 (see December 1996-January 1997 and March 16, 2000).


Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike