Iraq Study Group Members Profit from Secret UK Defense Lab

Approximately a third of this new creation, QuinetiQ, was purchased by the Carlyle Group, chaired by Frank Carlucci. Their investment of £42m is now worth more than £400m.
James Baker is an investor, and an employee of the group. Baker and Carlucci were also sat on the Iraq study group, which has recommended the privatization of Iraq's oil reserves.

It was too late to complain when the Guardian reported on September 15, 2002:

The government plans to sell a stake in its top secret defence laboratories - responsible for inventing the sort of hardware that would make 007's Q green with envy - to a shadowy American organisation that boasts ex-Presidents and Prime Ministers as special advisers and has invested millions of dollars for the bin Laden family and Saudi royalty.
...The government's plans to privatise the defence laboratories drew fierce criticism when they were announced four years ago."

That means the plans were announced in 1998. On the QuinetiQ website, notice the history of Director George Tenet, fresh from his post as US Director of Central Intelligence:

"George Tenet was sworn in as the 18th director of Central Intelligence in July 1997, and under presidents Bill Clinton and George W. Bush led efforts to rebuild and modernise the CIA’s capacity to acquire, analyse and disseminate critical intelligence information."

In spite of the flap about Iraq intelligence that resulted in his firing (ok, so technically he resigned), also providing an excuse for Bush to "re-organize" US agencies (again), we are reminded:

"Tenet was awarded the Presidential Medal of Freedom, the United States’ highest civilian honour, in December 2004. He has received numerous foreign decorations, being the first American to receive the Egyptian Order of Merit (First Class)..."

The Guardian story continued:

"... the government is accused of sacrificing the crown jewels of the UK defence industry..."
"Few were surprised when the Carlyle Group emerged at the head of the stampede to acquire the QinetiQ stake...
Chaired by former US Defense Secretary Frank Carlucci, the group's tentacles spread far and wide.
John Major, George Bush Sr and his former Secretary of State, James Baker, are on its payroll. Arthur Levitt, former chairman of the US Securities and Exchange Commission, and ex-Bundesbank president Karl Otto Pohl..."

The origin of QuinetiQ was discussed in The Hutton Inquiry on August 20, 2003.
(see http://www.the-hutton-inquiry.org.uk/content/transcripts/hearing-trans14.htm )

1 Wednesday, 20th August 2003
2 (10.30 am)
3 LORD HUTTON: Good morning, ladies and gentlemen.
4 Yes, Mr Dingemans.
5 SIR KEVIN REGINALD TEBBIT (called)
6 Examined by MR DINGEMANS
13 Q. And the DSTL's relationship with the Ministry of
14 Defence; perhaps you can explain it very shortly for us
15 all.
16 A. It is an agency of the Ministry of Defence.
17 Q. What does that mean?
18 A. The Defence Scientific and Technical Laboratory. That
19 means it has a large degree of devolved responsibility
20 for the management of its staff. It has a greater
21 degree of devolved responsibility than most parts of the
22 department. It was formed recently when the old Defence
23 Evaluation and Research Agency, which had been a trading
24 fund, that is to say it charged for its services, which
25 puts it at further arm's length from the main


(page) 13

1 department, was divided into two. One part, the major
2 part, was privatised and is now called QinetiQ, with
3 a Q, and the smaller part was kept within the department
4 but still, as it were, on a self-contained basis, called
5 DSTL.

The timeline of QuinetiQ continues in written answers from the UK government to members of Parliament. Here are 2 important items, from February 20, 2003 and from March 17, 2006

http://www.theyworkforyou.com/wrans/?id=2003-02-20a.194.6&s=section%3Awrans+s peaker%3A12875#g194.7

on Feb. 20, 2003 Earl Atlee of the House of Lords asked: Earl Attlee (Conservative) Hansard source

asked Her Majesty's Government:

What has been the expenditure on information technology systems for each of the past six years for the De fence Evaluation and Research Agency, the Defence Scientific and Technical Laboratory and QinetiQ.

Lord Bach (Parliamentary Under-Secretary, Ministry of Defence) Hansard source

In the period from financial year 1997-98 to financial year 2000–01, the De fence Evaluation and Research Agency (DERA) spent the following amounts on corporate information technology systems:

FY 1997–98 £45.7 million

FY 1998–99 £64.7 million

FY 1999–2000 £66.8 million

FY 2000–01 £55.6 million

On 1 July 2001, DERA was split into QinetiQ and the Defence Science and Technology Laboratory (Dstl). At this point, around 75 per cent of DERA's staff and assets transferred into QinetiQ.

In financial year 2001-02 and financial year 2002-03 QinetiQ and Dstl spent the following amounts on corporate information technology systems:

QinetiQ	Dstl
FY 2001–02 £36.9 million	£15.4 million
FY 2002–03 £32.3 million	£16.4 million	(estimates to year end)

The amounts above include capital expenditure and the costs of provision of corporate network services (including telephones), but exclude any IT costs incurred as a direct result of the separation of DERA into QinetiQ and Dstl.

The split of DERA occurred part way through financial year 2001–02. In order to allow for a comparison between financial years, DERA's IT costs for the period 1 April to 30 June 2001 have been apportioned between QinetiQ and Dstl in line with the The House of Commons votes by dividing. Those voting Aye (yes) to any...division of DERA's staff and assets between the two organisations. This apportionment has been used to produce the whole year figures for each organisation for financial year 2001–02 above.

http://www.theyworkforyou.com/wrans/?id=2006-03-17a.58891.h&s=section%3Awrans +speaker%3A10240#g58891.q0

March 17, 2006 James Gray, conservative MP inquired about: the disposal value was of Fort Halstead near Sevenoaks, Kent when it was sold to QinetiQ; what priceQinetiQ obtained for Fort Halstead; and what consideration he has given to renting Fort Halstead from its owners to accommodate the Defence Scientific and Technical Laboratory.
Adam Ingram (Minister of State (Armed Forces), Ministry of Defence) | Hansard source

holding answer 16 March 2006

The overall agreement for the privatisation of the former De fence Evaluation and Research Agency included £38 million to cover the value of Fort Halstead.

This figure was based on advice from independent valuers. The site forms part of a sale and leaseback arrangement with QinetiQ, which allows the Defence Science and Technology Laboratory (DSTL) to remain at Fort Halstead for the time being. However, the lease structure allows QinetiQ to rationalise its land holdings at Fort Halstead and provide funding for the eventual re-provision of facilities for DSTL.

The price obtained by QinetiQ for land at Fort Halstead is a matter for them as a private company; any questions should be referred to the Chief Executive at the following address:

Graham Love

Chief Executive

QinetiQ Ltd.

Cody Technology Park

Building A1

Ively Road

Farnborough

Hampshire GU140LX

This is a work in progress, and more evidence will be presented

David Roknich,
Editor

DOGSPOT

ALL RIGHTS RESERVED 2006