SATURN SPECIAL REPORT
"Findings and Conclusions on the connections between Bin Mahfouz, Khalid & family of Saudi Arabia, Muwaffaq, Osama bin Laden, and Al Qaeda"

Al Qaeda, Osama Bin Laden and his sponsors, promoters, financiers, aiders, and abetters in the September 11, 2001 terrorist acts are fundamentally rooted in an evil plot to annihilate and demoralize the American people and the country's values.  Al Qaeda is also bent on destroying symbols of free enterprise the world over: Untold killings in the Indian controlled section of Kashmir have been at least partially funded  by al-Qaeda because of its intense hatred of Hindus.  The charitable organizational network called the "Muwaffaq" (Blessed Relief) is one of the world terrorist organizations responsible for the death and injuries of September 11, 2001.  This organization and its founder and other officials who aided, abetted, sponsored, conspired to sponsor, financed or otherwise provided material support to Osama Bin Laden and Al Qaeda must be held accountable.

The actions of certain members of the Bin Mahfouz, Khalid and family are directly at issue in this report.  Osama Bin Laden is a naturalized Saudi citizen and has a close relationship, along with "financial ties,"  to Sheik Khalid Bin Mahfouz,  the elder of the clan.  In addition, he is also the brother-in-law of Osama bin Laden!

Khalid bin Mahfouz set up various  charity organizations around the world since 1991.   Every one of these foundations has ties to al Qaeda and the financing of Osama bin Laden's operations.

A SHORT HISTORY OF AL QAEDA

In or around 1989, Osama bin Laden formed al Qaeda, which means "the Base" or "the Vanguard" in Arabic, into an international terrorist group with the aim of opposing non Islamic governments and violence.   One major goal of al Qaeda was to drive the American forces out of the Saudi Arabian peninsula.  The al Qaeda organization brought together a large number of Arab fighters that had fought in Afghanistan against the Soviet Union.

Osama bin Laden initially turned his attention to Sudan where a Muslim fundamentalist regime has taken over in 1989.   He executed a lot of projects in Sudan to build a strong relationship with the Sudanese regime.  Osama bin Laden lived in Khartoum under the protection of Sudanese government and carried out massive terrorist training activities and recruitment.  In 1996, the Sudanese government bowed to the pressures of the US Government and requested that Osama bin Laden leave the country.  He moved back to Afghanistan as an honored guest of the Taliban.  For the next five years, with the funding, sponsorship, aiding, and abetting of Muwaffaq and several other Islamic charity organizations, Osama bin Laden continued to expand the terrorist training camps that filled the ranks of al Qaeda,  and served as bases from which to plan new attacks against America and the world.

Soon after 1989,  al Qaeda members began to plan terrorist attacks against America and planting cells in the Pakistan controlled area of Kashmir.  The first attack was against US soldiers in Somalia on October 3 and 4 of 1993, in which 18 American servicemen were killed and seventy-eight wounded.  These terrorists used the military techniques learned in training camps of al Qaeda.  Osama bin Laden and al Qaeda also plotted the first terrorist attacks against the World Trade Center in 1993 and a plan in 1995 (code named Project Bojinka) to blow up twelve American airliners simultaneously.  The back up plan for Project Bojinka was to hijack planes and use them as missiles against prominent American landmarks such as the World Trade Center, the White House, and the CIA headquarters.  Al Qaeda was also behind the Khobar towers bombing in Riyadh, Saudi Arabia,  American landmarks such as the World Trade Center, the White House, and the CIA headquarters.   

Al Qaeda was also behind the endless killings in the Indian controlled sections of Kashmir.   Al-Qaeda funded  the numerous Muslims militant groups in Kashmir, launching grenade attacks  on civilians, almost all of them Hindus.   Mujahidins trained in militant camps in Afghanistan (comprising Saudis and other nationalities) to the Pakistan controlled section of Kashmir to launch the attacks.

In 1998, Osama binLaden and al Qaeda orchestrated an attack on the United States Embassies in the East African countries of Kenya and Tanzania.  These explosions resulted in two-hundred ninety-one deaths and over five-thousand injuries.  The attack on the U.S.S. Cole in Yemen in October of 2000 then followed, with the brutal attacks on September 11, 01 thereafter. On December13, 2001, the shocking attack on Indian Parliament took place.   Osama Bin Laden and al Qaeda has publicly and proudly proclaimed responsibility for these multiple atrocities.

LAND MARK DEVELOPMENT: MUWAFFAQ (BLESSED RELIEF) NAMED A FRONT FOR AL QAEDA BY THE US GOVERNMENT (October 2001).

A REPORT BY THE US TREASURY STATES:

• Muwaffaq is an al Qaeda front that receives funding from wealthy Saudi businessmen (. . . ). Saudi businessmen have been transferring millions of dollars to bin Laden through Blessed Relief.

Muwaffaq was founded by Sheikh Khalid bin Mahfouz in 1992 in the Channel Islands.  In May 1992, Muwaffaq described itself in documents with a new structure as the Muwaffaq Foundation based in Jersey.  Jersey does not have a charities commission, as the U.K. Mainland does,  requiring charities to register and submit accounts.  Jersey is a self governing offshore island.   It does not maintain any public record of the Muwaffaq Foundation.  Officials there say that it was structured as a financial trust,   and did not require any type of registration.

The same year Muwaffaq was set up,  Muwaffaq Foundation (Blessed Relief) was set up in Sudan with Saudi Arabian businessman Yassin al Qadi as the chairperson. Muwaffaq Foundation acted as a financial support for Osama bin Laden operations in Sudan and elsewhere.

Abdulrahman Bin Khalid Bin Mahfouz, son of Khalid Bin Mahfouz, was a long term trustee of the Muwaffaq Foundation.  Abdulrahman bin Mahfouz has acknowledged to FORBES GLOBAL that the foundation was the brainchild of his father, who founded it with as much as $30 million.

Mr. Patrick Smith, the Editor-in-Chief of Africa Confidential (his paper was sued by Muwaffaq Foundation, with Sheikh Khalid Bin Mahfouz and Sheikh Abdulrahman bin Mahfouz as Trustees,  for libel in 1995 and won) when questioned by SCG about his knowledge of evidence linking Muwaffaq to terrorism, said: "We have a lot of information.  We have no doubt that Abdulrahman was involved with Muwaffaq."

SHEIKH KHALID BIN MAHFOUZ, HIS BACKGROUND, AND HISTORY OF PROVIDING MATERIAL SUPPORT TO Al QAEDA AND OSAMA BIN LADEN

In 1999,  there was a forced nationalization of the Bin Mahfouz bank,  Saudi Arabia's biggest. This followed by the eight years of collapse of Sheikh Khalid's investment bank, Bank of Credit & Commerce International (BCCI), amid worldwide scandal.  Sheikh Khalid was handed over the management of the National Commercial Bank of Saudi Arabia in 1980's.   Khalid soon got embroiled in one of the biggest banking scandals in history, much to the dismay of Saudi bank regulators.  The royal family ran interference for him but not save Khalid from getting NCB in the BCCI infamy.  Khalid bought up to 30% of BCCI in the mid-1980's and became director of the bank,  which later became notorious for ripping of depositors  and laundering money, often for terrorists.  A New York State grand jury indicted Khalid for fraud, and the US Federal Reserve alleged that he breached banking regulations.  After leaving NCB in infamy,  he returned to run the bank again in 1996.

Under Khalid Bin Salim Bin Mahfouz, the BCCI was also implicated in supporting terrorism, as reported by the United States Senate.

In the course of targeting BCCI for laundering drug money, the CIA learned of BCCI's involvement in manipulating certain financial markets, in arms trafficking, and in supporting international terrorism, including handling the finance of Sabri al Bannah or Abu Nidal, and his terrorist organization.

The 1992 Senate investigative Report (The Hearings were chaired by Senator John Kerry) detailed the initial involvement of BCCI in financing terrorism:

"BCCI's support of terrorism and arms trafficking developed out of several facts.  First, as a principal financial institution for a number of Gulf sheikdoms, with branches all over the world, it was a logical choice for terrorist organizations, who received payment at BCCI London and other branches from Gulf-state patrons, and transferred these funds wherever they wished without apparent scrutiny.   Secondly, BCCI's flexibility regarding falsification of documentation was helpful for such activities.  Finally, to the extent that pragmatic considerations were not sufficient of themselves to recommend BCCI, the bank's pan-third world and pro-Islam ideology would have recommended it to the terrorists."

A bank audit of the National Commercial Bank of Saudi Arabia conducted in 1998, with Sheikh Khalid Bin Mahfouz as Chairman, and Sheikh Abdulrahman Bin Mahfouz as one of the directors, stressed various irregularities to "unreported expenses and loans.".  It states that "without knowledge of the Zakat Committee, NCB Directors (with Khalid bin Mahfouz and Abdulrahman bin Mahfouz on the Board)  established over the years credits and loan facilities for several charitable organizations, along with banking facilities that were not viewed by the Committee."   Direct donations were "received through those facilities to the Red Crescent Saudi Committee, International Islamic Relief Organization, and Muwaffaq Foundation."  

The NCB audit report points out a $3 million dollars transfer to Blessed Relief Foundation (Muwaffaq), a supporter of Osama Bin Laden founded by Khalid Bin Salim Bin Mahfouz.   Khalid bin Salim bin Mahfouz was dismissed as Chairman from the NCB in 1999 soon after the release of the bank's audit report and placed under House arrest in Taif, Saudi Arabia.

Saudi royal family restricted Sheikh Khalid Bin Mahfouz's travel in 2000 after US officials shared financial evidence gained from investigations following the 1993 World Trade Center bombing,  and subsequent terrorist attacks against the USS Cole,  U.S. Military barrack attacks in Riyadh, and the African embassies, a failed 1996 plot to bomb 12 airliners over the pacific, and failed plot to bomb U.S. Consular offices in India.   The confidential information  made available to SCG reveals  that these travel restrictions were lifted in September 2001.

Sheikh Khalid bin Mahfouz,  his son Sheikh Abdulrahman bin Mahfouz, and the Bin Mahfouz legal advisor Dr. Cherif Sedky are defendants in at least two federal lawsuits initiated by the families of September 11.

US Congress passed the USA Patriot Act of 2001 to help families of September 11  attacks deal with the pain of severe losses by strengthening their rights to pursue justice and punishment against the perpetrators  of terror.

Executive Order 132224 of September 23, 2001 (signed by President Bush): "Blocking property and prohibiting transactions with persons who commit, or support terrorism."

One US Court recently stated, " the only way to imperil the flow of money and discourage the financing of terrorists is to impose liability on those who knowingly and intentionally supply the funds to those who commit the violent acts."  Boim V. Quaranic Literacy Institute, et al., 291F.3d 1000 (7th.Cir.2001)

"There is no difference between those who carry out terrorist attacks and those who finance terrorist attacks." US Attorney General John Ashcroft (October 9, 02).

In the wake of September 11 , The United Nations Security Council,  by Resolution 1373 (2001),  unanimously held that all Nations should act to prevent and suppress the financing of terrorism, as well as criminalize the willful provision or collection of funds for such acts.  The United Nations resolved that the funds, financial assets, and economic resources of those  who commit or attempt to commit terrorist acts, or participate in or facilitated the commission of terrorist acts, and of persons,  and entities acting on behalf of terrorists should also be frozen without delay.  UN Security Council Resolution 1373 (2001).

SHEIKH YASSIN AL QADI:
Yassin Al Qadi,  who ran Muwaffaq, from 1992 until 1997,  has been designated by the United States Government as foreign terrorist entity.  Yassin al Qadi incorporated in the United States a branch of the charitable organization Blessed Relief (Muwaffaq) in Delaware, 1992.   Blessed Relief was an al Qaeda front.   Millions of dollars have been transferred to Osama bin Laden through Blessed Relief.  United States Treasury citation about Mr. Al Qadi read in part:
" He heads the Saudi-based Muwaffaq Foundation.  Muwaffaq is an Al Qeda front receives funding from wealthy Saudi businessmen." It goes on to say that the business community has been transferring millions of dollars to Mr. Bin Laden though the charity.  Mr. Qadi's assets have been frozen by the US government.  

THE INTERNATIONAL DEVELOPMENT FOUNDATION (IDF)
IDF was founded by members of the bin Mahfouz family.   It is now under investigation by the U.K. Charity Commission.  According to reports filed with the Charity Commission last year, the directors of the IDF include Abdellah, Saleh, Mohammed and Ahmed bin Mahfouz the brothers of Sheikh Khalid bin Mahfouz.  The charity was named publicly in a French parliamentary report as having "points of contact" with the bin Laden organizations.  The report also stated that IDF was "suspected by the US of having made donations to Osama bin Laden."    IDF is a subsidiary of SEDCO (Saudi Arabian Economic Development Organization).   Some members of the family involved in Sedco say they are no longer connected to Khalid bin Mahfouz and do not in any way support Bin Laden.   However, SCG has exclusive and confidential information to show that the Abdellah, Saleh, Mohammed and Ahmed bin Mahfouz are still very close to their brother, Khalid.   One close associate of Sheikh Khalid has told SCG: "They speak every day."

YEMEN,  SINGAPORE,  MAHFOUZ CONNECTION
Mahfouz Group  has been a 40% shareholder in Aden Terminal Project,  in Yemen.  60% shareholder  has been the Government of Singapore,  through PSA Corporation,  a subsidiary of Temesak Holdings.   The military  government of Yemen has been providing strong support to the Mahfouz family.  Bin Mahfouz and Bin Laden clans (both from Yemen) are highly admired in Yemen.  Both, as the the native sons of Yemen,  hold a large following.

THE INDIA CONNECTION

SCG's detailed and longstanding research into the operations of Muwaffaq (and perhaps the SAAR Foundation) reveal that part of the funds went to finance terrorism attacks against innocent people in the Indian controlled section of Kashmir-Especially Jaish-e-Muhammed and Lashkar-e-Taiba.  A key source in the inner circle of Sheikh Khalid bin Mahfouz revealed this explosive information.  Also, the prestigious American think-tank,  Council on Foreign Relations, has extensively documented the facts regarding these issues.  An Indian national, working in the National Commercial Bank of Saudi Arabia, has also confirmed this piece of information.  Much of the funds was transferred through Sheikh Khalid's bank in Pakistan.

Both Jaish-e-Muhammed and Lashkar-e-Taiba have attracted Pakistani members as well as Afghan and Arab Veterans who fought in the 1980's Soviet occupation of nearby Afghanistan (US COUNCIL ON FOREIGN RELATIONS).

US COUNCIL ON FOREIGN RELATIONS REPORT

€  Laskhar-e-Taiba ("Army of the Pure"):  Active since 1993, is the military wing of the well-funded Pakistani Islamist organization Markaz-ad-Dawa-wal-Irshad, which recruited volunteers to fight alongside the Taliban.

RECOMMENDATIONS

€  The tragedy of September 11 2001,  in which thousands of American lives perished,  is a direct result  of the terrorist attacks by Al Qaeda,  and Osama bin Laden.  It is also a direct result of the terrorism financing provided by many Saudi charity organizations and groups.    The Mahfouz family, in numerous ways, aided and abetted terrorism through  Muwaffaq and other organizations, and should be held accountable.

€  The endless killings of innocent civilians in the Indian side of Kashmir is largely due to the gorilla attacks by militant organizations supported, financially and arms wise by the extremist terrorist groups, most prominently al-qaeda.  In October 13, 2001, US Government declared "Muwaffaq" (Blessed Relief in English) as a front for al-Qaeda.   Muwaffaq was founded and financed by Sheikh Khalid bin Mahfouz, according to the admission by his own son, Sheikh Abdulrahman bin Mahfouz.  Sheikh Abdulrahman, along with another member of the bin Mahfouz family, was a director of Muwaffaq for many years.

€  Two Pakistani terrorism groups,  Lashkar -e-Taiba and Jaish-e-Muhammed have been identified as the perpetrators of the horrible suicide attacks on the Indian Parliament-the beacon of world's largest democracy.  These two groups have been funded largely by al Qaeda,  with Sheikh Khalid bin Mahfouz's Muwaffaq as a front.  These attacks were a wake up call for India,  United States,  and other world communities who have all been the victims of terrorism.

€   The Government of Singapore has proclaimed strong support to the US efforts and international efforts to root out terrorism.  And  yet,  it has been in partnership with the Mahfouz Group,  investing millions of dollars in the Aden Terminal project.  Perhaps Singapore should reassess its priorities and take necessary steps to avoid the perception of supporting terrorism groups.

€   Singapore Airlines (SIA) has a number of flights to the following key cities in India:  Chennai,  Cochin,  Hyderabad, Mumbai, New Delhi, and  Bangalore.

€    Bharti Telecom is 32% owned by Singapore Telecommunications (SingTel).  SingTel itself has at least four offices in  India.

€   In December 2003, Temasek  purchased a 5.2% stake in India's second largest bank, ICICI BANK.

€    PSA Corporation has a major partnership with Tuticorin Port Trust.

€    Temasek has a 13.9% stake in Matrix Laboratories  of Secunderabad.

Even under pressure from Saturn Consultants Group,   behind the scenes urging by the political leaders with whom the organization has worked with,   and under the shadow of the Karnataka High Court (India) litigation,  Temasek Holdings. has not taken any known steps to dissociate from terrorism financing connections.  Under these circumstances, the Government of India should seek an explanation from  the Government of Singapore,  try to hold it accountable for the partnership with the Saudi terrorism financing group,   and seek compensation for the families of victims of the Parliament attack,  Jamu & Kashmir Legislature attacks,  The 2003 Mumbai attacks,  and the Marad Massacre in Kerala State.

PSA SICAL (INDIA) PRIVATE LIMITED
PSA SICAL operates the Tuticorin Container Terminal in Tuticorin, Tamil Nadu.  The company is 51.5% owned by PSA Corporation (Singapore) and 38% owned by SICAL (India) Private Limited. The company has been operating with immunity although PSA (Yemen) has been in partnership with Yeminvest,  owned by the terrorism financier Sheikh Khalid bin Mahfouz.

THE FRENCH PARLIAMENTARY REPORT
According to a 70-page annex, The Economic Environment of Osama bin Laden, attached to the French report, the structure of Bin Laden's financial network bears a striking similarity to that used by the collapsed BCCI bank for its fraudulent operations in the 1980's.  Sheikh Khalid bin Mahfouz was indicted by the New York Grand Jury for fraud in connection with the collapse of BCCI (1991).  The Sheikh owned about a quarter of BCCI.  The name of Sheikh Khalid bin Mahfouz recurs throughout the annex and is directly linked to Bin Laden through banks, holding companies, foundations, and charities, one of which, 'Muwaffaq', was named by the US Treasury as a front.  The bin Laden study appears an appendix to a French Parliamentarians' report that blames outdated legislation and inadequate enforcement, and lack of political will to challenge powerful commercial interests.

SCG  wishes to express thanks to the following sources  and contacts:

•       USA Today   
•       New York Times
•       Washington Post
•       Guardian (U.K.)
•       Africa Confidential (U.K.)
•       Dawn (Pakistan)
•       Boston Herald  
•       Forbes
•       US Intelligence
•       Saudi- Intelligence
•       Federal Court papers
•       The London Times (U.K.)
•       The Telegraph (U.K.)
•       The Ottawa Citizen
•       Newsweek    
•       Time
•       Reuters
•       The Hindu
•       rediff.com
•       Irish Times