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Manuel Ferreira
09-03-2008, 11:42
'Merchant of Death's' secret SA connections
9 March 2008, 11:26

By Chiara Carter

An arrest at a luxury Thailand hotel has sent shockwaves rippling through various governmental, aviation and murky arms-trade, diamond-dealing and money-laundering circles from Johannesburg and Polokwane through to Kabul, Kinshasa, Ostend and Washington.

Former Johannesburg resident Viktor Bout, the man dubbed the Merchant of Death and said to have inspired the blockbuster movie The Lord of War, was arrested on Thursday in a sting operation following a trans-continental probe invol-ving six countries. With an associate, Andrew Smulian, Bout faces extradition to the US.

But Bout's role as a "postman" for the powerful, as one Gauteng-based friend describes him, might mean many of his activities remain shrouded in secrecy.

Bout's tale is a saga of the amoral world of post Cold-War conflict zones. For years, international bodies, intelligence agencies and investigative journalists have claimed that Bout's sprawling aviation empire was steeped in blood, built from the ashes of the Soviet empire on the covert shipment of arms to conflict zones around the globe, including Afghanistan, Liberia, Angola and the Congo.

Yet, planes linked to the Russian-born Bout, who sports a dozen aliases and holds several passports, were but a few years ago flying missions for the Americans in Iraq.

This despite claims he had flown weapons to all sides in the Afghan war, including the Taliban.

Now, US drug enforcement agents have effected the arrest of Bout in Thailand, taking the gap to act after the international arms trafficker went a step too far and cocked a snook at the US by allegedly plotting to transport sophisticated weapons to Colombian leftist rebels on the US's doorstep.

Bout is a larger-than-life figure on the African stage, where he has for close on two decades been a well-known figure in Africa's hotspots and at one stage lived in Sandhurst, Johannesburg.

His airlines were regular visitors to South African airports, notably the more porous Lanseria and Polokwane airports.

An airline linked to Bout's business empire made news when it was revealed it had arrived in the dead of night at the Waterkloof military base and whisked away Khalid Rashid, the Pakistani whose controversial "deportation" resembling a rendition rocked the South African government.

Bout has known a variety of African heads of state and rebel leaders across the continent and the world.

These include the Afghan northern forces leader Ahmed Shah Massoud; former Zairean dictator Mobutu Sese Seko, whom Bout claims to have whisked to safety; now deceased Angolan Unita leader Jonas Savimbi; the notorious Charles Taylor of Liberia; Congolese opposition leaders; and, closer to home, the Swazi royal house.

He admitted in a rare interview his clients included two notorious arms dealers, Alexander Islamov and Leonid Minin.

But Bout has also flown UN peacekeepers to East Timor and Somalia and claims he flew in French troops during the Rwandan genocide.

Bout was reliably reported to have been flying to Iraq for both private contractors and the US military.

The extremely private Bout, a linguist fluent in half a dozen languages, was university-educated in Moscow but as part of the Soviet air force found himself in Mozambique during the dying days of the Soviet empire.

His aviation empire then began with the purchase of a few ageing Antonovs, allegedly funded by illicit sales of abandoned Soviet weaponry.

Arms traffickers inherited the Soviet Cold War weapons supply along with clandestine routes of transport and finance, which Bout is said to have used to good effect.

The trade involves falsified end-user certificates, bribes, swapped cargos, ever-changing tail numbers on planes and big, big rewards whether in cash or diamonds.

Bout soon set up an aviation base in Sharjah, an airport of convenience in the United Arab Emirates, where he paired up with the founder of Sharjah's free-trade zone, Richard Chichakli, said to be a nephew of top Syrian politicians of yesteryear.

Sharjah, which stands at the crossroads of Europe, the Middle East and Africa, has continued to be the centre of Bout's empire, albeit via a bewildering network of companies and airline outfits run by alleged surrogates.

When he came under scrutiny from Belgian authorities in 1996, Bout moved from that country to South Africa where he lived in style for a few years.

Bout's Liberian-registered company, Air Cess, moved from Belgium and then entered a joint venture with a South African freight company called Norse Air.

A new company called Pietersburg Aviation Services and Systems (Pty) Ltd was set up in 1997 and operated under the name Air Pass.

One of the directors was Valerii Naido, who after leaving South Africa ended up being listed by the US along with Chichakli for his alleged Bout connections.

Although Bout stopped operating directly in South Africa at the end of the 1990s, the US-based Centre for Public Integrity's International Consortium of Investigative Journalists claimed he continued to operate in southern Africa via surrogates who included smaller Russian operators.

However, South African authorities closed in on Bout and accused him of breaching civil aviation law as well as busting UN sanctions by sending supplies to Unita in Angola.

He had meanwhile registered a number of aircraft in neighbouring Swaziland and registered more airlines in other African countries.

These listed companies include three Bout outfits that were targeted by South African authorities in the late 1990s - the apparently defunct Pietersburg Aviation Services and Systems (Pty) Ltd, Cess Air and Air Pass.


This article was originally published on page 10 of The Cape Argus on March 09, 2008

Manuel Ferreira
10-03-2008, 09:45
SA crime sent ‘Lord of War’ packing

Chantelle Benjamin

Chief Reporter

ALLEGED international arms dealer Viktor Bout, who was arrested in Thailand last week, sold his home in SA after he and his family were held up in 1998 and robbed by masked men who took more than $6m in cash.

Considered the most notorious gunrunner of the post-Cold War period, Bout evaded arrest for many years because of a lack of solid evidence linking him to the supply of arms to a number of rebel groups, in Africa and Afghanistan in particular.

Despite Bout’s dangerous business, the authors of a book about him say the attack in SA was one of his worst experiences.

Bout was arrested on Thursday in a sting operation by US and Thai police after he allegedly agreed to supply weapons to Colombian rebels.

This was just five days after the Colombian government found the computer of a leader of the Armed Revolutionary Forces of Colombia, Raul Reyes, in a camp-site in Ecuador.

Bout’s nicknames, “Embargo Buster” and “Merchant of Death”, were coined by former British foreign office minister Peter Hain.

After reading a 2003 United Nations (UN) report on Bout’s activities, Hain said: “Bout is the leading merchant of death who is the principal conduit for planes and supply routes that take arms, including heavy military equipment, from east Europe, principally Bulgaria, Moldova and Ukraine, to Liberia and Angola.

“The UN has exposed Bout as the centre of a spider’s web of shady arms dealers, diamond brokers and other operatives, sustaining the wars.”

The 2005 film, Lord of War, starring Nicolas Cage as Yuri Orlov, was partly based on Bout.

Last year, Stephen Braun and Douglas Farah published a book about him titled Merchant of Death: Money, Guns, Planes, and the Man Who Makes War Possible.

Bout started out in the arms trade after his air force regiment was disbanded during the break-up of the Soviet Union. The end of the Cold War resulted in huge quantities of arms and ammunition being dumped on the private market. Bout owned and operated 60 aircraft and had the capacity to deliver small arms and big weapons systems anywhere in the world.

He moved to Johannesburg in 1997 and formed a joint venture with a South African cargo company, Pietersburg Aviation Services and Systems. One of his aircraft was involved in the rendition of Pakistani Khalid Rashid, who was flown out of SA from the Waterkloof air force base in the middle of the night.

In March 1998, Bout and his wife were playing tennis across the road from his home in Sandhurst when armed men burst into his heavily guarded home using hand grenades to blast open the gate. They knocked Bout’s mother-in-law unconscious when she tried to resist, and roughed her up Bout when he rushed across to confront them. The robbers fled with the money, but left behind paintings and other expensive items.

Soon afterwards, one of his employees was assaulted and robbed on a Johannesburg street and Bout was shot at while travelling in a car. A few months later Bout sold his house, estimated at the time to be worth $3m.

The Russian believed the robbery was a warning by organised criminal groups that they could get to him any time they wanted.

No one was arrested for the attack. Farah and Braun said at the time the South African police promised a “speedy and prompt investigation, but of course nothing happened”.

At the time of the robbery, Bout was operating a company known as AirPass, which had already attracted the attention of the US and South African governments. SA accused Bout’s company of breaking UN sanctions by sending trucks and other supplies to Unita-held areas of Angola — accusations Bout denied.

Before charges could be brought, however, Bout shifted his operation to Swaziland, but aircraft belonging to AirPass and another company linked to Bout were grounded in 1998 because of incorrect documentation.

Authorities believe that between 1997 and 1998, Bout smuggled weapons worth $14m into Africa alone. Bout seemed to reduce his activities in southern Africa after his attacks in SA, but US authorities believe he simply changed his tactics, making use of a number of subcontractors .

US and Belgian officials had targeted Bout’s companies in a wide-ranging money-laundering investigation when he moved to this country. SA refused to prosecute Bout, for lack of evidence.

He made it on to the US high priority list after the September 11 2001 attacks, when it emerged that he had allegedly supplied weapons to the Taliban.

In 2002, the Belgian government finally issued an international arrest warrant for Bout, charging him with money- laundering involving more than $300m. But by then, Bout had fled to Russia, which does not allow the extradition of its citizens.

Yesterday, South African authorities were not able to confirm whether SA was taking part in the US-led investigation against Bout .