Dirtier than Watergate

The Reagan-era espionage system that has managed to stay under the radar.

It was described as dirtier than Watergate, and involved US government dealings with Iraq, Libya, Korea and even the late British publishing tycoon Robert Maxwell. The story is deep, dark and complex; a web of strange dealings and dubious characters, it implicates wealthy arms dealers, Israeli intelligence services, the Soviet KGB, MI5 and the CIA. But unlike Watergate, this scandal, from a particularly dark chapter in American history, has appeared in no Hollywood film and is yet to reach a satisfying conclusion.

It began in the late 1970s, when the Washington-based software developer Inslaw pioneered people-tracking technology, designed to be used by prosecutors to monitor case records. Known as the Prosecutor's Management Information System (PROMIS), the software was developed under grants from the US department of justice. The US government, as it helped fund the creation of PROMIS, had been licensed to use the software on condition that it did not modify, distribute or create derivative versions of it. The government, however, did not stick to this agreement.

Under the Ronald Reagan administration's covert intelligence initiative known as "'Follow the Money", the US National Security Agency (NSA) misappropriated PROMIS for sale to banks in 1982. The version of PROMIS sold by the NSA had been "espionage-enabled" through a back door in the programme, allowing the agency to covertly conduct real-time electronic surveillance of the flow of money to suspected terrorists and other perceived threats to US national interests.

A letter from the US department of justice in 1985, later obtained by Inslaw, documented more plans for the covert sale and distribution of the espionage-enabled version of PROMIS, this time to governments in the Middle East (which would surreptitiously allow the US to spy on foreign intelligence agencies). The letter outlined how sales of the software were to be facilitated by the late Saudi billionaire Khalid bin Mahfouz and the arms dealers Adnan Khashoggi and Manucher Ghorbanifar. PROMIS should be delivered without "paperwork, customs, or delay", it stated, and all of the transactions paid for through a Swiss bank account.

In the years that followed, friends of then attorney general Edwin Meese, including a Reagan associate, Dr Earl Brian of the government consultancy firm Hadron, Inc, were reportedly allowed to sell and distribute pirated versions of PROMIS domestically and overseas. As a House judiciary committee report found in 1992, these individuals were apparently permitted to do so "for their personal financial gain and in support of the intelligence and foreign policy objectives of the United States".

Brian, who was later jailed for four years on an unrelated fraud charge in 1998, has since denied any association with the Inslaw case. According to the former arms broker and CIA "contract operative" Richard Babayan, however, he was instrumental in selling PROMIS to the governments of Iraq, Libya and Korea. When Brian was unable to market PROMIS further, it is claimed that, with the help of Rafi Eitan, a high-ranking Israeli intelligence officer, the British publisher Robert Maxwell was recruited to assist.

In a sworn affidavit, the investigative author Gordon Thomas recounts how Eitan told him Maxwell alone sold over $500m worth of espionage-enabled versions of PROMIS – including licences to the UK, Australia, South Korea, Canada and the Soviet KGB. The British counter-intelligence agency MI5, according to Eitan (who himself was an adviser to the UK secret service MI6), used PROMIS to track members of the Irish Republican Army (IRA), as well as Irish republican political leaders including Gerry Adams.

Inslaw alleges the US government, by selling PROMIS to other governments around the world, engaged in what equates to "multibillion-dollar theft". This claim was supported by two separate courts in 1988, which ruled that it "took, converted, stole" PROMIS from Inslaw "through trickery, fraud and deceit". Three years later, however, a court of appeal overturned both rulings on a "jurisdictional technicality" after pressure from the federal justice department.

Now more than two decades since he pioneered PROMIS, the Inslaw president Bill Hamilton today believes the story illustrates an enduring, fundamental problem at the heart of the US justice system. "[It] chronicles the continued inability of the US government to enforce federal criminal laws in cases involving national security issues, or even to render ordinary civil justice," he says. "National security appears to suspend the checks and balances built into the system of government in the United States, to the detriment of the citizens."

Some, including the US government, have tried to dismiss the Inslaw saga as conspiracy. But a message relayed to Bill Hamilton and his wife from the former chief investigator of the Senate judiciary committee, Ronald LeGrand, seems to confirm that the strange PROMIS affair – which remains unresolved – is much more than just a case of chronic paranoia.

"What Mr and Mrs Hamilton think happened, did happen," LeGrand wrote, conveying information he had received from a trusted government source. "The Inslaw case is a lot dirtier for the Department of Justice than Watergate was, in both breadth and depth. The Department of Justice has been compromised in the Inslaw case at every level. "

Ryan Gallagher is a freelance journalist based in London, currently working for the Frontline Club. His website is here.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com