The Mendacity of Ms Una Jagose, Spymaster

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Intro.

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Background.

15 September 2014

Despite being labelled a “fizzer” by some National-aligned critics, and a media expecting ‘fireworks’, the “Moment of Truth” event  presented information that raised the public’s awareness of state surveillance and data collection in this country;

…that the Government Communications Security Bureau was involved in the mass surveillance of New Zealand citizens, and that the National government and Prime Minister John Key were aware of it […] NSA leaker Edward Snowden accused Prime Minister John Key of misleading the public over the country’s spying activities…

One mass-surveillance system referred to was XKEYSCORE, which investigative-journalists on The Intercept described as;

The NSA’s XKEYSCORE program, first revealed by The Guardian, sweeps up countless people’s Internet searches, emails, documents, usernames and passwords, and other private communications. XKEYSCORE is fed a constant flow of Internet traffic from fiber optic cables that make up the backbone of the world’s communication network, among other sources, for processing. As of 2008, the surveillance system boasted approximately 150 field sites in the United States, Mexico, Brazil, United Kingdom, Spain, Russia, Nigeria, Somalia, Pakistan, Japan, Australia, as well as many other countries, consisting of over 700 servers.

These servers store “full-take data” at the collection sites — meaning that they captured all of the traffic collected — and, as of 2009, stored content for 3 to 5 days and metadata for 30 to 45 days. NSA documents indicate that tens of billions of records are stored in its database. “It is a fully distributed processing and query system that runs on machines around the world,” an NSA briefing on XKEYSCORE says. “At field sites, XKEYSCORE can run on multiple computers that gives it the ability to scale in both processing power and storage.”

Our esteemed Dear Leader, John Key, has consistently refused to confirm of deny whether or not the GCSB uses XKEYSCORE. Equally critically, Key refused to confirm or deny whether or not the spy bureau obtains information from the American NSA, which does employ XKEYSCORE.

15 March 2015

However, seven months ago, investigative journalists Nicky Hager and Ryan Gallagher, working with the Herald on Sunday, released a damning report which presented clear evidence that the New Zealand government was indeed collecting private information using XKEYSCORE;

For the first time, New Zealanders can learn about people their government has targeted as part of its role in Five Eyes, a surveillance alliance that includes New Zealand, the United States, the United Kingdom, Canada, and Australia.

The secret document, dated from January 2013, shows some of the names and other search terms that the Government Communications Security Bureau (GCSB) entered into the internet spying system XKeyscore . XKeyscore is run by the US National Security Agency and is used to analyse vast amounts of email, internet browsing sessions and online chats that are intercepted from some 150 different locations worldwide.

GCSB has gained access to XKeyscore through its partnership in Five Eyes, and contributes data to the system that is swept up in bulk from a surveillance base in Waihopai Valley.

John Key’s assurances that New Zealanders are not under mass surveillance, nor mass data-collection being used, is also questionable after a recent TV3 The Nation’s interview with the GCSB’s  acting director, Una Jagose.

As well as XKEYSCORE, there is another programme that Key confirmed was being used by the GCSB – “Cortex”;

“We’ve never undertaken mass surveillance, we have got a programme called Cortex running over specific entities providing cyber protection.”

However, there are indications that Cortex is not merely the benign “cyber protection system” as has been made out.

It may well be a cleverly  disguised ‘Trojan Horse’ – a possibility recently raised by fellow blogger, Martyn Bradbury and others.

The Present.

On 3 October, the GCSB’s  acting director, Una Jagose, was interviewed by Patrick Gower.

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Image acknowledgement: TV3 – The Nation

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Whether by clever persistance or sheer dumb luck, Gower managed to elicit some intriguing responses from Jagose on the ‘Cortex’ programme.

Gower first asked who is under attack by “cyber threats from overseas”. Jagose responded;

“We focus our attention on New Zealand companies that are holders of information, assets of importance to New Zealand, so nationally important infrastructure companies and some key government departments. So, yes, we’re definitely seeing attacks there.”

Gower then pointedly asked; “So what you’re talking about – banks, telecom companies, those kinds of things?”

At this point, Jagose became less than forthcoming;

“Well, those parts of the infrastructure, the nationally important, those sorts of things. We actually don’t talk about who they are or specifically what types of organisations they are, because revealing that also reveals to an adversary where we might have our best and richest sources of data that they might be interested.”

Which is interesting, as foreign cyber attackers would already be aware who their targets are in this country. Jagose would not be revealing anything that foreign cyber attackers would not already know.

The only people kept in the dark – us.

As Gower continued to interview Jagose, it soon became apparent why she was reticent in revealing who was being targetted by so-called “foreign cyber attacks”.

Gower followed up by asking a natural-enough question; “who is trying to get this information? Is it individual criminal organisations, or is it countries?”

Jagose replied;

“…At best it’s criminals. It’s often foreign-sourced sophisticated malware that we’re seeing…

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… it could be industrial espionage. It could be IP theft. It could be just having an in to important sovereign communications or discussions by government agencies, policies, positions governments might take, positions companies might take.”

Then, she made this startling admission;

“We don’t spend too much of our time trying to track down who did that, because, in fact, we want to use our time and our technology protecting networks and systems.”

Pardon?!

“We don’t spend too much of our time trying to track down who did that…”

Jagose repeated the statement in the next response she gave to Gower – though the TV3 reporter did not appear to comprehend the implications of her candid admission;

“Well, again, I say we don’t spend our energy looking at— attribution is really difficult. It is apparently a very technical and difficult thing to work out where did that come from, who’s doing it and why are they doing it? We spend our energy on defence.”

In effect, the GCSB’s “new role” has moved from intelligence gathering (ie, finding out who is supposedly – and I use that word deliberately – launching “cyber attacks” against us) – to one of being a State-funded-and-operated, quasi-Norton Anti-Virus agency?

Is this credible?

When did National decide to go into business to offer a rival service to MacAfee, AVG, Norton, et al?

That is not a rhetorical question, as National released two Cabinet Minutes related to “Project Cortex”. The first, labelled “1”, is dated 28 July 2014, the other (labelled “4”) is simply dated “2014” (though Key refers to the document as having been written in July 2014). Both outlined a business case for “Cortex”, including costings and assessment by Treasury – though all dollar figures had been redacted.

Cabinet Minute 4 takes great pains to point out;

2. The proposal takes into account the amended GCSB Act and necessary warranting procedures, and will in all cases operate with the consent of the participating entities.

In fact, Cabinet Minute 4 refers to “consent” from organisations and entities no less than eight times. Someone was at pains to make the point to whoever was going to read the document. Which would be  unusual, as normally Cabinet Minutes are almost never made public.

Cabinet Minute 4 also makes several curious statements;

27. There will be no ‘mass surveillance’, and data will be accessed by GCSB only with the  consent of owners of relevant networks or systems.

By coincidence, a press statement from John Key dated 15 September, 2014 – two months after Cabinet Minute 4 was supposedly written shortly after a Cabinet Meeting held that year – quoted Dear Leader as stating;

“I can assure New Zealanders that there is not, and never has been, mass surveillance by the GCSB.

“In stark contrast, the Bureau actually operates a sound, individually-based form of cyber protection only to entities which legally consent to it,” Mr Key says.

Paragraph 27 of that Cabinet Minute – supposedly written before the “Moment of Truth” on 15 September 2014 – sounds remarkably similar to Key’s 15 September 2015 press statement – a year after “Moment of Truth”.

It almost seems as if Cabinet Minute 4 was prepared at some later date, knowing that it would be eventually be released to the media and the public to counter the “Moment of Truth”. Which is ridiculous… the author(s) of that Minute could not have known – in advance – that the Minute would eventually be released by  National. That would mean that the document was written well after the Cabinet meeting, and was re-worded to take into account revelations by Edward Snowden on 15 September last year.

That would mean the document was a fraud.

Ridiculous… right?

Interestingly, Cabinet Minute 4 also makes this curious statement at two different points;

7. GCSB is not proposing to procure or develop bespoke systems. No material level of software development is required of GCSB or a second party. The proposal is to procure then integrate capability components already available and tested over several years [redacted],

41. GCSB is not proposing to procure or develop bespoke systems. No material level of software development is required of GCSB or a second party. The proposal is to procure then integrate capability components already available and tested, [redacted]. The hardware and software components range from widely available commercial-off-the-shelf (COTS) systems, through to single-source COTS, to systems only available through government-to-government agreement. All of the technology has been in use for some time, [redacted].

As The Intercept website asked,

The Cortex documents [Cabinet Minutes] refer to the use of technology that “has been in use for some time.” What technology is this?

What is the Cabinet Minute referring to when it states; “ components already available and tested over several years ” and “capability components already available and tested“?

“Available” where?

“Tested” by whom?

“In use for some time” by who?

The document throws up more questions than answers. Unfortunately, despite Key’s claims to the contrary, this is not an open and transparent government that readily shares information.

So which “consenting organisations” will use Cortex? And will clients and staff be made aware that their electronic communications may be intercepted by the GCSB?

Cabinet Minute 4 states;

18. The foundation of the preferred option is a malware detection service delivered to [redacted] consenting organisations. [redacted] of the [redacted] organisations will be government agencies. The other [redacted] will be drawn from a list of approximately [redacted] organisations of national importance developed by DPMC’s National Cyber Policy Office (NCPO) and approved by ODESC on 7 June 2013. The list includes key economic generators, niche exporters, research institutions and operators of critical national infrastructure.

However, we do not know who those “consenting organisations” are. It is a secret. Remember Jagose’s first response to Gower during the 3 October interview;

“We actually don’t talk about who they are or specifically what types of organisations they are, because revealing that also reveals to an adversary where we might have our best and richest sources of data that they might be interested.”

Note that Paragraph 18 above refers to the “National Cyber Policy Office” (NCPO). The NCPO is an arm of the Security and Intelligence Group. That Group, in turn, is part of  the Department of the Prime Minister and Cabinet (DPMC);

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Note the address of the “National Cyber Policy Office“: Pipitea House, 1-15 Pipitea Street, Thorndon (arrow 1). Which happens to be the same building housing the GCSB.

Then note something called “Connect Smart” (arrow 2), which is described as;

Connect Smart is a new Government-led initiative, delivered in partnership with the private and NGO sectors, to raise awareness of cyber security issues and promote ways to protect yourself, your business and others online.

“Connect Smart” sounds remarkably like the supposedly top-secret list described by Cabinet Minute 4 as, “organisations of national importance developed by DPMC’s National Cyber Policy Office (NCPO) and  … The list includes key economic generators, niche exporters, research institutions and operators of critical national infrastructure”.

“Connect Smart” was launched on 16 June 2014 (just prior to Cabinet Minute 1   supposedly written on 28 July 2014), by Communications and Information Technology Minister, Amy Adams.

Adams warned about;

“The common thread that unites cyber threats is their capacity to cause damage; ranging in scale from the distress experienced by an individual who has had their identity hacked, to the economic damage that sustained industrial cyber espionage can cause to a country.”

She further stated;

“A range of departments are involved – from those at the front end, such as Police, Department of Internal Affairs, and the National Cyber Security Centre, through to those grappling with the policy implications of cyber security, led by the National Cyber Policy Office. 

This year, the NCPO will be working on a number of major policy initiatives:

• A refreshed and comprehensive national Cyber Security Strategy to make sure we are coordinated and resourced across government to address this challenge;

• A targeted inter-agency cybercrime plan;

• An assessment of the economic balance of cyberspace for New Zealand;

• Testing the Government’s response to a significant cyber incident; and

• Consideration of the options for a national cyber mechanism to improve the coordination, effectiveness and efficiency of the Government’s response to cyber incidents. “

It sounds as if Adams is referring to… Cortex?

So who are the  “Connect Smart” Partners? They are;

• Hewlett Packard
• Spark NZ (formerly Telecom)
• ASB
• Facebook
• ANZ
• Datacom
• Microsoft
• Dimension Data
• Marsh
• International Underwriting Agencies Ltd
• Internal Affairs
• Department of the Prime Minister and Cabinet
• Vodaphone
• Aura Information
• Mako Networks
• Ministry for Primary Industries
• RSA
• Symantec
• NZ Post
• Inland Revenue
• EQC
• Nga Pu Waea
• NCSC
• North Harbour Business Association
• RealMe
• Mastercard
• NZ Police
• Transpower
• University of Auckland
• Yahoo NZ
• ZX Security
• Google
• IPENZ Engineers NZ
• ACC
• Air New Zealand
• British High Commission
• Consumer
• Financial Markets Authority
• Institute of IT Professionals
• Internet NZ
• Kiwibank
• KPMG
• Massey University
• Privacy Commissioner
• PWC
• Senior Net
• VISA
• Dept of Conservation
• Xero
• 1st Tuesday
• Journey Church
• Duo
• Digital Journey
• Institute of Directors
• University of Waikato
• Unitech
• Scots College
• Greater East Tamaki Business Association
• Commission for Financial Literacy
• Delta Insurance
• Neighbourhood Support
• Westpac
• Ministry of Education
• BNZ
• Waikator District Health Board
• NZ Foreign Affairs & Trade
• Waitemata District Health Board
• Business NZ
• Crimestoppers
• MPA
• Longitude 174
• University of Canterbury
• VMWare
• Trademe
• Insurance Council of NZ
• Weta Digital
• High Tech Youth Network
• AJ Park
• Noel Leeming
• Our School
• NZ Transport Agency
• NZ Bankers Association
• University of Otago
• Gallagher
• Chartered Accountants
• AIG
• ARC Solutions
• Secure Safe
• Safestack
• Paymark
• Quantum Security
• NZ Customs Service
• Room 9
• NZ Trade & Enterprise
• SSS IT Security Specialists
• Statistics NZ
• NZ Health IT
• Crombie Lockwood
• Snap
• Lock It
• Connect
• Computercare
• Meredith Connell
• Network Box
• TUANZ
• Stay Smart Online
• Sovereign
• NZ Security Intelligence Service (SIS)
• Eagle Technology
• Plan B
• Naki Cloud
• Pentech
• Liverton Technology Group
• Price Me
• Mila XAG
• Need A Nerd
• KD Consult
• Senate SHJ

(I have listed all companies, in case the website suddenly disappears, or that particular page is taken down.)

“The list includes key economic generators, niche exporters, research institutions and operators of critical national infrastructure” – the DPMC’s National Cyber Policy Office’s description of their supposedly secret list of clients.

The “Connect Smart” list certainly meets that criteria – including the Security Intelligence Service. And Amy Adams’ 16 June speech appears to confirm it.

So do the staff and clients of these companies, organisations, and government departments know that they are most likely part of the Cortex programme run by the GCSB?

Are they aware that their electronic communications may be collected and stored by the GCSB?

Are they aware their communications could be read, as Jagose confirmed to Patrick Gower;

Gower: What does the analyst do if there’s a personal email there?

Jagose: Well, the analyst is looking at it not for its content but for what the email and the traffic tells us about the fingerprint or the adverse attack that is occurring. So that’s what they do with it.

Gower: But the analyst can see the content if they want to?

Jagose: Yes.

Gower then asked the all-important question;

Gower: Yeah, but I would be told, would I, by the company that they’ve now put Cortex on?

Jagose: You’ll be told that your communications will be screened or may be screened for cyber defence purposes.

Gower: Right. How do you get told that?

Jagose: In terms and conditions of use, for example.

I scrutinised the Terms and Conditions of Spark NZ – one of the country’s largest companies that deals with thousands of employees, contractors, and customers. Is there any reference to Cortex with Spark’s Terms and Conditions?

Answer: no.

There is, however, this brief reference to handing over information to the government;

The Operator and Spark Digital reserve the right to disclose end user information that it believes, in good faith, is appropriate or necessary to take precautions against liability; to protect the Operator and Spark Digital and others from fraudulent, abusive, predatory, or unlawful uses or activity; to investigate and defend against any third party claims or allegations; to assist government enforcement agencies; or to protect the security or integrity of the Platform.

That paragraph is at the end of the Terms and Conditions statement, at the bottom of the page. How many people will have waded through the entire document to spot it? Who even bothers to read Terms and Conditions?

And by itself, just how informative is the brief statement, “to assist government enforcement agencies“?

It is a meaningless statement.

One cannot escape the conclusion that Una Jagose has attempted a ‘snow job’ of New Zealanders. If so, it remains to be seen how effective she has been.

Meanwhile,  it is unclear what the true purpose of the  ‘Cortex’ programme really is. Can we trust anything that we are told about it by National?

Answer: no.

There is much more to this than meets the eye.

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Addendum1

Def: “Bespoke”

Of goods, especially clothing) made to order.

(of a computer program) written or adapted for a specific user or purpose.

Addendum 2

Questions posed by The Intercept on XKEYSCORE and Cortex;

We are currently researching a number of other stories related to GCSB, and I expect we are going to shine more light on the agency’s activities in this sphere in the near future. In the meantime, Key and the GCSB face a mounting number of important questions that they have until now managed to dodge.

Here’s a few for starters:

• Why did you inform the public that the GCSB Amendment Bill would not lead to an expansion of powers when at the same time you were planning the Speargun mass surveillance initiative?

• Why was phase one of the Speargun project completed if it was, as Prime Minister Key has claimed, something that never made it past the “business case”?

• Why were New Zealanders not informed about the Cortex project until the government’s hand was forced by disclosures based on documents from Snowden?

• How much data is collected on a daily basis by GCSB under the Cortex project, and how does the agency ensure this data does not “incidentally” include the content or metadata of citizens’ communications?

• The Cortex documents refer to the use of technology that “has been in use for some time.” What technology is this?

• Is any information collected by GCSB under Cortex — or any other program that accesses internet data — shared with the NSA and/or other Five Eyes agencies through systems such as XKEYSCORE?

• Does GCSB have access to XKEYSCORE and, if so, for how long has this been the case?

• Does GCSB use its access to internet data streams — under initiatives like Cortex or similar — to launch active/offensive cyber operations that involve hacking computer systems to collect information?

• When will you declassify documents detailing the Speargun project and showing that it was not completed?

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References

Radio NZ: ‘Moment of Truth’ on world stage

The Intercept: Xkeyscore – NSA’s Google for the World’s private communications

Radio NZ: Key silent on spy programme

NZ Herald on Sunday: Revealed – The names NZ targeted using NSA’s XKeyscore system

TV3 The Nation: Interview – GCSB Acting Director Una Jagose

TV3 The Nation: Interview – GCSB Acting Director Una Jagose (transcript)

Beehive: Cabinet Minute 1

Beehive: Cabinet Minute 4

Beehive: PM responds to incorrect surveillance claims

Department of the Prime Minister and Cabinet: National Cyber Policy Office

Connect Smart: Partners

Spark NZ: Terms and Conditions

Other bloggers

No Right Turn: The GCSB’s PR campaign

Public Address: Crowdsourcing Project Cortex

The Daily Blog: Martyn Bradbury – GCSB begin marketing campaign to con NZers

The Daily Blog: Chris Trotter – Revolution In Pipitea Street: The Listener celebrates the Baby-Boomer takeover of the SIS and the GCSB

Previous related blogposts

An Open Message to the GCSB, SIS, NSA, and Uncle Tom Cobbly

Letter to the Editor: John Campbell expose on Key and GCSB

Campbell Live on the GCSB – latest revelations – TV3 – 20 May 2014

The Mendacities of Mr Key #1: The GCSB Bill

One Dunedinite’s response to the passing of the GCSB Bill

The “man ban”; animal testing; GCSB Bill; and compulsory miltary training

Nigella Lawson, GCSB, Christchurch re-build, and Malcolm Burgess on Campbell Live

The real reason for the GCSB Bill

The Fletcher Affair – a warning for Labour

TV3 – Campbell Live’s GCSB Public Vote

The GCSB Act – Tracy Watkins gets it right

The GCSB Act – some history

The GCSB – when plain english simply won’t do

The GCSB law – vague or crystal clear?

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This blogpost was first published on The Daily Blog on 4 October 2015.

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An Open Message to the GCSB, SIS, NSA, and Uncle Tom Cobbly…

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Just to let any spooks who may be monitoring my blogging activities;

1. I don’t know who “Anonymous NZ” is – but they have my 101% support.
2. Expect public resistance to state surveillance to grow.
3. I encourage all GCSB and SIS operatives here in NZ (and abroad) to take Edward Snowden’s lead and to disclose information to the media.

All around the world, people are waking up to the growth of secret surveillance and other State power. And they don’t like it. Not one bit.

So, Mr and Ms X from the GCSB, SIS, NZ Defence Force, Police, etc – whose side will you be on?

It seems that someone within the NZ Defence Force has had their conscience pricked. They can no longer stomach the deceit and threat to democracy that is going on within our military;

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Source: NZ Herald – Ex-Defence boss: Journalists not the ‘enemy‘

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Whoever leaked the NZDF Security Manual is nothing less than a hero of the people. This person – whoever she or he is – has an allegiance and loyalty far greater than to a state organisation – Mr/Ms X is loyal to their fellow New Zealanders.

Heroes like Bradley Manning and  Edward Snowden.

I implore workers at our spy agencies, and NZDF; draw aside the curtains of secrecy. The sunlight of public attention, as they say, is the best disinfectant of all. Let that leak become a torrent of information.

If history has demonstrated anything, it is that State power is fleeting and cannot withstand the will of the people. Whether it is the dismantling of the apartheid regime in South Africa; the fall of repressive dictatorships in Algeria, Tunisia, and Libya; or the collapse of the USSR – state power cannot endure where it does not have the respect of the people.

To the workers at the GCSB, SIS, et al,  – tear down this “house of cards”;  show the people whose side you are on. Will you prop up a  self-serving government of manipulative liars that fears and distrusts the people?

Or will you let your conscience guide you to do the decent thing.

Otherwise – why did we bother to fight nazism all those many years ago? What was the point of many sacrifices made to preserve our freedoms from the power of the State?

Why indeed.

Our grandparents fought oppression with guns, bombs, and bullets.

Today, we must rely on something else, even more powerful. Our consciences.

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Westpac, Peter Dunne, & Edward Snowden…

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Acknowledgement: Huffington Post –  Edward Snowden Charged With Espionage Over NSA Leaks

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Are we  witnessing the first green buds of the Earth Spring?  All over the world, the winds of change are blowing harder and harder.

The Arab Spring was first, and people rose up against dictators in Algeria, Egypt, and Libya. In Syria, a similar popular uprising  turned into a bloody sectarian war, claiming nearly a hundred thousand lives. Dictator Assad will not give up power easily.

In the West, the Occupation movement flowered for a brief moment, but has become dormant again… for a while.

In Turkey and Brazil, people have come out onto the streets to oppose their  governments. Even democratically elected governments are feeling the brunt of popular discontent.

In the US, even as a once great symbol of freedom devolves into a police surveillance state, individuals are risking personal safety and rebelling.

Bradley Manning and Edward Snowden are two such men.

Manning was arrested in May 2010, and is currently facing a military trial (and we know how that will turn out).

Now, Edward Snowden is the latest whistleblower to be charged by an American system that is becoming more and more despotic.

When a government fears it’s own people, it is well past it’s Use By date.

Bradley and Snowden: history books will be kinder to them than the politicians who persecuted them.

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Acknowledgement: Radio NZ –  Dunne hasn’t made up mind about GCSB bill

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Edward Snowden made public information that revealed that US intelligence agencies were spying on citizens in countries around the world. He revealed that no one’s privacy  was safe.

Meanwhile, here in New Zealand, the National led government is rushing a Bill through Parliament that would permit the GCSB to do precisely that; spy on New Zealanders.

We have moved from a nation that barely tolerated the State from prying into our lives – to one that is surveilling us; storing vast quantities of data on us; and now wants more power to spy on us.

There is barely a murmur in response.

Even the Right Wing – the political spectrum that is  (supposedly) the most intolerant and suspicious of  the growth of  State power – seems to be practically comatose. Though in reality that may be because National is proposing the law-change, and not Labour. If it were a Labour government…

Peter Dunne, fresh from  resigning his ministerial portfolios for allegely leaking the Kitteridge Report (or, more accurately, breaking an embargo, since it was one week away from being released anyway), has yesterday  announced that he might not support National’s  Government Communications Security Bureau and Related Legislation Amendment Bill.

Whilst I’m not about to look a gift-moa in the mouth and happily support Dunne on this – it does raise a few questions.

Questions like… why?!?! Up till now he has been  the obedient lap-cat of the National Party, so why all of a sudden has the Coiffured One grown a pair, and practically thrown his lot in with the Snowdens and Mannings of this world?

Martyn Bradbury on The Daily Blog has been speculating on Dunne’s motivations in his part of the GCSB Affair in a series called The Dunne & Vance Theory.

Whatever is going on – I hope Dunne votes against the Bill. We don’t need to empower our spy agencies any more than they are already. We need to remember that the State is our servant – not the other way around.

We don’t need to be constantly surveilled, in case one of us happens to nick a pen or spray-paints ‘Key Sucks’ on the footpaths outside Parliament.

Up until the 21st century, the State pursued crooks after they committed wrong-doing. Now, the State seems intent on watching us all – in case someone, somewhere, is naughty.

Isn’t that… Big Brother?

I support Dunne on this dire issue. It is time to call a halt to the rise of the Surveillance State.

Dunne may well be the man to do it.

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Acknowledgement: Radio NZ – Govt move to tender banking gets Green approval

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I’ve always wondered…

Why have successive governments (Labour as well as National)  used Australian-owned Westpac Bank to hold government accounts – known as the ‘Master Banking Contract’?   The Master Banking Contract has been held by  Westpac for 23 years despite never  being tendered out.  It covers all government departments (except  Crown entities and  SOEs).

According to Alex Tarrant,

• In the late 1980s, Treasury undertook an open tender to select one bank to provide the Crown’s domestic banking services. Westpac was selected to provide these services and a deed entered into in January 1989.
• A new master agreement was signed in November 2004 and, since 2005, the Crown has negotiated ongoing contractual price reductions for contract services.
• The contract covers only the core banking services associated with operating Government departments’ bank accounts for processing domestic receipt and payment transaction banking business in New Zealand.
• An increasing array of banking services have developed over time that are not covered by the master banking agreement with Westpac. Banking services that are not covered by the contract are regularly tendered by the departments concerned.
• The contract applies only to Government departments, not Crown Entities or SOEs.
• The Treasury regularly consults with key departments over pricing and service levels relating to the contract, including the possibility of conducting a future tender of the Crown’s banking arrangements.
• The contract has not been re-tendered to date because the costs of doing so outweigh the expected benefits given the complexity of arrangements with departments and the price reductions negotiated under the existing contract.  Departments do, however, tender for a range of supplementary banking services not covered by the master banking agreement with Westpac.
• The fee arrangements between the Crown and Westpac are commercially sensitive and are not made public.

Acknowledgement: Interest.co.nz – Government considers future of Westpac’s key 21 year-old banking deal

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Here are two further points to consider,

1. Last year Westpac NZ  reported   $707 million in after-tax profit  –  a 22 %  increase from 2011. (See: Westpac profit rises 22pc to $707m )
2. In October 2009, the IRD won a lawsuit against Westpac which had been  taken to Court for tax avoidance. Not only did Westpace lose, but it ended up owing $961 million in back taxes and accrued interest. (See: Westpac loses massive tax case on all counts)

So, Mr Key or Mr English – just remind us again why the NZ Government still has a Master Contract for State banking, with a convicted tax avoider, that actively conspired to scam the tax-payer for nearly one billion dollars?!

How is that being a Good Corporate Citizen?

Perhaps we should just let the Russian Mafia tender for our banking services – the result would be the same.

So not only is Westpace making huge profits – $707 in 2012 alone – but they’re screwing us by not paying their share of tax, as the law demands.

Have I left anything out?

Screw the tender process.

Just give the Master Contract to Kiwi Bank. The benefits would be obvious to all but the most strident, dogmatic  right winger;

1. No more tax avoidance – the Crown-appointed Board  (with Ministerial over-sight) would see to that,
2. Kiwibank would make bigger profits and therefore pay a bigger dividend to the government,
3. All profits remain in New Zealand and not shipped of overseas (to Australia in Westpac’s case)
4. Less profits remitted overseas will help of balance of payments

Win/win/win/win.

I’m just gobsmacked that no politician – whether Labour or National – has ever seen the blindingly obvious nature of this commercial cock-up.

And strangely enough, it’s left-wing parties – Mana and the Greens – thay have to point this out to the more capitalist-minded Nats?!

Though the reasons why the Nats have stayed ‘sweet’ with Westpac seem to be less than commercially sensible and more to do with a good night out…

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Acknowledgement: Interest.co.nz – Greens say govt must tender master banking contract with Westpac after Ministers reveal corporate hospitality accepted from the bank

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Just to remind folks: New Zealand is the “least corrupt nation” on Earth. And government ministers are not corrupt, nor easily bought off by corporate parasites.

I can’t say otherwise.

Otherwise I’d be sued for telling the truth.

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Government Communications Security Bureau and Related Legislation Amendment Bill. – See more at: http://thedailyblog.co.nz/2013/06/21/surveillance-laws-strikebreaking-subversive-groups/#sthash.ky4ZiKiZ.dpuf

For Edward Snowden…

… send a message to President Obama!

As State power increases around the world, more and more citizens are going to stand up and say “No more! This far, but no more! I’m not going to be part of this shit any longer!”

We can each do a little bit to help the Bradley Mannings and Edward Snowdens who are making a stand on our behalf!

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Join the global movement – help put pressure on President Obama to do the right thing with Edward Snowden.

Sign the petition

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> Click here <

Note to GCSB, SIS, NSA, and any other “intelligence security” agency reading this,

1. This is not a “terrorist” blogsite
2. Be a good chap and sign the petition for Edward Snowden
3. When will you join Bradley and Edward and become a whistleblower? Join the people. It’s time to reclaim our privacy and roll back the Surveillance State!

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