Blood From Stones : The Secret Financial Network of Terror

Rating:
Summary: Required reading
Review: Blood from Stones
By Douglas Farah

If the 9/11 Commission's report on intelligence shortfalls prior to 9/11 was hailed for its scope and completeness, it nonetheless failed to recognize the considerable role played by black market diamonds in al Qaeda's pre-attack strategic planning. Indeed, the report specifically downplays the activities of a small but clearly committed cadre of Qaeda operatives who bought millions of dollars worth of illegally mined diamonds from warlords in Liberia and Sierra Leone, saying reports of the group's use of African "conflict diamonds" lacked "persuasive evidence."

Given the secretive nature of the diamond business and the physical isolation and insecurity of Sierra Leone's and Liberia's interior (where most of the diamond deals were done), the commission's researchers might have been forgiven this omission, especially if other sources of information had not existed. But this was not the case. In fact, an exceptionally well researched record of al Qaeda's African diamond operations did exist. It was not buried in sensitive intelligence documents or stored on inaccessible government computers. It was all in the public record - specifically in the archives of The Washington Post, in two years' worth of articles by Douglas Farah that formed the backbone for his stunning book Blood from Stones.

That Farah's painstakingly researched portrait of al Qaeda's (indeed, many of the world's major terror groups') secret financial network was willfully dismissed by the commission is in large part a reflection of the powerful culture of denial in the American intelligence community - a culture the commission rightly detailed as partly responsible for pre-9/11 failures.

Fortunately for policy makers and readers interested in the shadowy regions of the global financial system, Farah's book offers an critical analysis of al Qaeda's strategic motives for buying diamonds, as well as the networks the group and its affiliates used to quickly and quietly move immense sums of cash around the world.

Farah's reporting is sharp, incisive and personal, informed by an impressive array of documents and interviews with American, European and other intelligence officials, as well as Farah's own on-the-ground reporting in Liberia, Sierra Leone, the Gulf, Pakistan, Europe and Washington.

Blood from Stones reads like a classical primer on investigative journalism. From Farah's serendipitous discovery of the link between al Qaeda and West Africa (a Liberian source recognized several al Qaeda operatives in a post-9/11 issue of Newsweek that Farah had brought to a meeting) to his journeys to Sierra Leone's diamond fields, the hushed diamond buying rooms of Antwerp and Brussels, and the bustling souks and markets of Pakistan and Dubai, Blood from Stones is written with a precision verging on scientific. But perhaps more impressive than the bibliography of documents and intelligence files are Farah's interviews with current and former government officials who had, in the years leading up to 9/11, picked up on al Qaeda's effort transfer its assets out of formal finance and banking systems - but whose warnings were mishandled, misdirected or simply ignored.

These interviews illustrate the challenge American investigators faced as they sought to track a shadowy and agile enemy. In a series of candid interviews with former Treasury Department officials, Farah describes the molasses pace (and reluctance) with which the American intelligence community shifted gears from tracking criminals through the formal international finance system to the hidden-in-plain-sight but maddeningly secretive networks of traditional hawala money traders.

It is not surprising then, that Farah's first reports of an unexpected and non-traditional link between Islamic fundamentalists and West African warlords were greeted with suspicion by American intelligence. As Farah points out in his book signing appearances, "The first reaction from the CIA and others in American intelligence was: `If we don't already know about it, it can't be true.'"

Bureaucratic blinders are not uncommon in Washington's eternal inter-agency turf wars. But the CIA's steadfast reluctance to accept Farah's reporting - even after much of it was validated by European intelligence services - went beyond what might be considered the standard brush-off tactics employed by the Agency against an inconvenient journalist. Farah documents in troubling detail efforts by the CIA to discredit him and his sources, including a terrifying account of the detention and intimidation of Farah's key African source by US intelligence operators.

That the CIA allocated significant resources to destroy the credibility of the man who had guided Farah through the labyrinthine relationship between al Qaeda, the Liberian warlord-turned-president Charles Taylor, and the brutal and bizarre Sierra Leonean rebel group the Revolutionary United Front, is an indication not only of the Agency's desperate desire to cover its own failures, but also of the US intelligence community's deeper disregard for Africa and its perennial crises.

To be fair, Blood from Stones gives credit to American officials who resisted the Agency's groupthink and valiantly tried to raise interest in Washington in the lawless areas of West Africa - regions where the terms "rebel group" and even "government" are often euphemisms for mafia-style criminal syndicates. In addition to the former Treasury Department officials who noted al Qaeda's move to protect its cash from international seizure Farah gives high marks to former US Ambassador to Sierra Leone Joe Melrose, and Representatives Frank Wolf (R-Virginia) and Tony Hall (D-Ohio).

The revelations Farah records in Blood from Stones may yet receive a stamp of approval from the American intelligence community. But even if public recognition doesn't come from the spooks, one hopes that bureaucratic pride hasn't prevented the CIA and other agencies from putting this book on the must-read list for every agent and analyst engaged in the global war on terror.

John Pitman, former Voice of America West Africa correspondent, 1998-2000.


Rating:
Summary: Breakdown in Understanding Financing of Terrorists
Review: Disturbing is an understatement when I try to come to grips with the American intelligence community's failure to understand the complex financial workings of al Qaeda pre and post 9/11.

Award-wining investigative reporter for the Washington Post as well as other publications, David Farah delivers an outstanding exposé in his book Blood From Stones of just how extensive this financial network spreads itself throughout the world, something akin to an octopus with its multitude tentacles.

In 2000' Farah was named as the Post's West African chief. It is little wonder that he had to flee for his life from the Ivory Coast, where he had been stationed, if the information he uncovered and revealed in Blood For Stones is any indication of his findings.

Prior to 9/11, tracking down the financial networks of terrorist groups was given very low priority within the western intelligence agencies. In fact, when it finally began to show up on their radar screens indicating how vital financing was to the lifeblood of these groups, many in the intelligence community were caught in a state of disarray.
It also depicted just how uncreative these intelligence agencies were when its members failed to understand the mentality and culture of these various groups.

Farah's findings divide itself into nine chapters, each of which deals with different aspects of the intricate architecture of the financing of terrorists organizations. Using historical narrative peppered with hard investigative facts, the author effectively succeeds in divulging just how far and deep the system has extended.

Beginning with the terrorists' forays into the diamond fields of Liberia and Sierra Leone, and how money is exchanged for diamonds in order to escape the conventional banking system, readers are subsequently apprised of other avenues of creative terrorist financing.

We learn how charitable organizations, individuals, and businesses funnel millions of dollars to the coffers of al Qaeda as well as other terrorist organizations as Hamas, Hezbollah and the Muslim Brotherhood, who incidentally, contrary to some wide held belief, do in fact collaborate with one another.
How small-time scams and petty crimes committed by terrorist sympathizers in the United States help their cause. These crimes include skimming the profits from drug sales, stealing and reselling baby formula, illegally redeeming large quantities of grocery coupons, stealing credit card numbers, and many more.

Farah also explains to the reader that one of the vital ingredients of the system of financing of terrorists is the 'hawala." One built on trust, family relationships and regional affiliations - a concept foreign and little known to the intelligence community. According to the author, "hawala" means to change or transform, and also carries a connotation of trust. The money that flows through it often actually does not move at all.

The author's superb investigative skills do not shy away from the difficult realities exposing the incompetence of the American intelligence services, although he does attribute part of the blame for the extensive cutbacks that had occurred after the end of the cold war.
No doubt, had the intelligence services followed up on the many leads presented to it from various sources including the author, a different picture and understanding of al Qaeda and its collaborators would have emerged.
In part, it may be that pre 9/11's principal focus was on stamping out illegal drugs, rather than bothering about the smuggling activities in West African countries or the petty crimes in the USA.
There was also a general philosophy within the intelligence services that "thinking out of the box" or creativity on the part of their personnel was unacceptable. In fact, there was a kind of self-denial that such an intricate financial system would be possible.

Farah gets top marks for his crisp and intelligent writing avoiding quick generalizations, and many of his findings are corroborated with concrete evidence found in the "notes" section at the end of the book.
Definitely, this is a must read for anyone wishing to know more about the intricate workings of these terrorist groups.

Norm Goldman Editor of Bookpleasures.com

Rating:
Summary: Breakdown in Understanding Financing of Terrorists
Review: Disturbing is an understatement when I try to come to grips with the American intelligence community?s failure to understand the complex financial workings of al Qaeda pre and post 9/11.

Award-wining investigative reporter for the Washington Post as well as other publications, David Farah delivers an outstanding expos? in his book Blood From Stones of just how extensive this financial network spreads itself throughout the world, something akin to an octopus with its multitude tentacles.

In 2000? Farah was named as the Post?s West African chief. It is little wonder that he had to flee for his life from the Ivory Coast, where he had been stationed, if the information he uncovered and revealed in Blood For Stones is any indication of his findings.

Prior to 9/11, tracking down the financial networks of terrorist groups was given very low priority within the western intelligence agencies. In fact, when it finally began to show up on their radar screens indicating how vital financing was to the lifeblood of these groups, many in the intelligence community were caught in a state of disarray.
It also depicted just how uncreative these intelligence agencies were when its members failed to understand the mentality and culture of these various groups.

Farah?s findings divide itself into nine chapters, each of which deals with different aspects of the intricate architecture of the financing of terrorists organizations. Using historical narrative peppered with hard investigative facts, the author effectively succeeds in divulging just how far and deep the system has extended.

Beginning with the terrorists? forays into the diamond fields of Liberia and Sierra Leone, and how money is exchanged for diamonds in order to escape the conventional banking system, readers are subsequently apprised of other avenues of creative terrorist financing.

We learn how charitable organizations, individuals, and businesses funnel millions of dollars to the coffers of al Qaeda as well as other terrorist organizations as Hamas, Hezbollah and the Muslim Brotherhood, who incidentally, contrary to some wide held belief, do in fact collaborate with one another.
How small-time scams and petty crimes committed by terrorist sympathizers in the United States help their cause. These crimes include skimming the profits from drug sales, stealing and reselling baby formula, illegally redeeming large quantities of grocery coupons, stealing credit card numbers, and many more.

Farah also explains to the reader that one of the vital ingredients of the system of financing of terrorists is the ?hawala.? One built on trust, family relationships and regional affiliations - a concept foreign and little known to the intelligence community. According to the author, ?hawala? means to change or transform, and also carries a connotation of trust. The money that flows through it often actually does not move at all.

The author?s superb investigative skills do not shy away from the difficult realities exposing the incompetence of the American intelligence services, although he does attribute part of the blame for the extensive cutbacks that had occurred after the end of the cold war.
No doubt, had the intelligence services followed up on the many leads presented to it from various sources including the author, a different picture and understanding of al Qaeda and its collaborators would have emerged.
In part, it may be that pre 9/11?s principal focus was on stamping out illegal drugs, rather than bothering about the smuggling activities in West African countries or the petty crimes in the USA.
There was also a general philosophy within the intelligence services that ?thinking out of the box? or creativity on the part of their personnel was unacceptable. In fact, there was a kind of self-denial that such an intricate financial system would be possible.

Farah gets top marks for his crisp and intelligent writing avoiding quick generalizations, and many of his findings are corroborated with concrete evidence found in the ?notes? section at the end of the book.
Definitely, this is a must read for anyone wishing to know more about the intricate workings of these terrorist groups.

Norm Goldman Editor of Bookpleasures.com

Rating:
Summary: A Must Read
Review: Farah's expose of Al Qaeda buying blood diamonds in West Africa is as important as it is frightening. Farah tells us how the CIA tried to discredit the story because they didn't discover it themselves, in spite of several attempts on the part of potential informants to give them information. But the book is much broader than that. From blood diamonds in Africa to gold in Dubai to the hawala system in Pakistan to Muslim charities in the US, Farah provides us with the most complete explication of how terrorist finances really work and why we have had so little success in cutting off the flow of terrorist money. This book is a must read, especially now that the CIA has been forced to back track and acknowledge that Farah was right.

Rating:
Summary: Spun from whole cloth
Review: The author is a liberal "journalist" on an ego trip, attempting to make us believe he was leaps and bounds ahead of the entire national security apparatus in his knowledge of the funding sources for Islamic terrorism. He treats the CIA, FBI and other U.S. security agencies as bureaucratic dupes just not quite up to his level of savvy. The book reads like fiction and in light of the 9/11 commission's report and the Sandy Berger document thefts in which Berger tried to absolve himself of his piece of the responsibility for letting terrorism fester, parts of this book are proven now to be fiction. Further, the author uses other liberal "journalists" as sources for conversations and events that are probably embellished as well. Another technique of the author is to bash Bush on terror and use passive voice and other slight of hand writing techniques to give Clinton a pass, even though it is well documented that Clinton let the terror threat grow largely without response. The book is not believeable and the best I can say is that it should have been written as a historical novel.

Rating:
Summary: the good, the bad and the slightly irrelevant
Review: The intial parts of the book which focus on the diamond trade in collapsed west african states was fascinating and a breeze to read due to it's succinct writing style. However , I was disappointed that the end of the book seems to lose focus and clearly strays from the book's very title. The last few chapters regard not Al Qaida and diamond smuggling, but fund raising for militant Palestinian groups from within the US using various scams in Brooklyn and elsewhere.I feel that defining Hamas as threat to the United States is highly inaccurate and also unbalanced with out al least a mention of Jewish diamond merchants and their support of militant, armed settlers.

Overall, a good read but, disappointing in the end with references to people like Steven Emerson, which takes away a bit of the credibility of an otherwise interesting work.

Rating:
Summary: Blood From Stones (my review)
Review: The reason Blood From Stones is one of the most readable books on terrorism is due to Farah's straightfoward writing. Unlike other authors, Farah is concise, and wastes no time with personal emotions. Instead he presents cold, hard, solid facts, like a journalist is supposed to do.

Blood From Stones is a should-read for everyone skeptical of American intelligence and for anyone skeptical of the US's ability to win the War on Terror

Rating:
Summary: Great, Informative Book
Review: This is a fantastic book for everyone interested in Africa, the diamond trade, or the money trail fueling global terrorist activity. The author takes the reader through the many webs of terrorist financing, including key personalities involved in the trade of diamonds and other precious stones. In addition, the author covers several civil wars in Sierra Leone, Liberia, and Congo, which provides a great background to those conflicts. The author traveled extensively throughout Africa and the Middle East to follow the money trail. Farah is an excellent writer who writes in a clear and concise manner. This is an impossible book to put down. Academics and as well as lay people will find this book valuable. In fact, the American people should rush out and buy this book.

Rating:
Summary: A true 5-star performance
Review: This is an amazing piece of work from a man who has risked it all to get the facts that weave together this masterful story. It's style makes it an enjoyable and hard to put down, though its content is not that of the usual quick-and-easy read. It is the perfect book for those interested in the facts behind terrorism.