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Cover Story

Welcome to Hotel "Congo-fornia"

by Judi McLeod, Editor,
Saturday, april 9, 2005

BNP Paribas, the bank associated with the Oil-for-Food scandal, is doing brisk business in Governor arnold Schwarzenegger's golden state.

according to its website, "BNP Paribas acts as the sole agent for the State of California's economic recovery bonds, the largest municipal bond sale in the United States."

active in the municipal bond market for over 10 years, BNP is providing credit enhancement and liquidity support for the State of California's sale of $2.97 billion of variable-rate Economic Recovery Bonds ("ERB's").

The bank also boasts that it will be a proud partner of San Francisco in financing the rebuilding of the city's famous bridge.

San Francisco's Presidio is also home to former Soviet leader Mikhail Gorbachev and his Green Cross International.

Word has it that Gorbachev covets and has the backing of Governor Schwarzenegger to establish a $50 billion (U.S.) solar energy fund in California.

While the Golden State seems to have capitulated to PNB Paribas, the bank is being shown the gate in other states.

Impervious to the charm and means of the financial giant is the "Show Me" State of Missouri. The Missouri legislature confirmed it had pink-slipped Paribas Capital as an approved broker-dealer for its $2.9 billion pension fund because of its French parent's role in the Iraq oil-for-food scandal.

Missouri's state treasurer investment committee voted 5-0 on Feb. 4 to remove Paribas capital as one of nine primary dealers through which the state placed short-term investments. BNP's unit was the state's largest broker-dealer for short-term investments with $185 million in open accounts in December.

BNP, described by detractors as "Saddam's favourite bank" is still under investigation in Washington and New York.

Since the oil-for-food scandal hit headlines, much has been written about BNP Paribas being under the control of the Montreal-based Power Corporation.

But while Power Corp. headquarters may be in Montreal, the company is, in fact, run from Brussels, home of the crystal palace of the European Union.

Thus, arnie's California is now a Pacific coast version of the Congo.

How did the power end up in Brussels?

Meet Baron alfred Frere of Belgium.

"The reclusive capitalist. The Belgium billionaire, albert Frere, considers himself a pioneer of Europe's cross-border deals," write David Owen and Neil Buckley." (Careers from the Financial Times, 12 July, 1999).

…"Just months after Mr. Frere merged PetroFina, the Belgian oil company he controlled, with France's Total, the new group TotalFina–of which he is the biggest shareholder–is bidding $43bn for Elf aquitane.

"Mr. Frere is already the biggest shareholder in another large French corporation, the utilities group Suez Lyonnaise des Eaux, and his sprawling empire owns half of CLT-Ufa, Europe's biggest commercial broadcaster.

"He has owned half the Belgian steel industry and a stake in Drexel Burnham Lambert, the ill-fated Wall Street investment bank. He has held, and sold, large chunks of half a dozen Belgian flagships–PetroFina, Banque Bruxelles Lambert, the number three bank, Royale Belge, the number two insurer, Tractebel, the energy group. and he is the only Belgian in Forbes magazine's list of billionaires–estimated wealth: $1.6 billion.

.."Mr. Frere is gifted at buying and selling, and turning a profit--as he has ever since realizing the Korean War would create demand for steel. He is also exceptionally good at finding loyal, like-minded partners and backers. He ploughed the proceeds of his 1950s steel trading into a string of steelmakers--backed by French bank Paribas, still a partner. When the Belgian state nationalized them, Mr. Frere used his handsome profit, in 1982, to take control of Groupe Bruxelles Lambert, the holding company second only to the mighty Societe Generale de Belgique. With that came the corporate stakes he has traded in recent years for his Suez and Total interests.

"In his assault on Groupe Bruxelles Lambert, his partner was Paul Desmarais, the francophone Canadian head of Power Corporation, whom Mr. Frere had befriended on the board of Paribas. Mr. Desmarais remains his bosom ally and jointly controls much of his empire."

Frere was awarded the title Baron when knighted by King albert in 1994.

So in essence, California is an estate of His Highness the King of Belgium and his royal retinue that worships what it seeks, total power.

Indeed, a Google search of Groupe Bruxelles Lambert finds a plethora of barons and counts, a veritable Who's Who of Franco-Belgian nobility--the European wing of power.

Meanwhile, did The Terminator, a Hollywood good guy, let the bad guys into `Congo-fornia'?


Canada Free Press founding editor Most recent by Judi McLeod is an award-winning journalist with 30 years experience in the print media. Her work has appeared on Newsmax.com, Drudge Report, Foxnews.com, Glenn Beck. Judi can be reached at: judi@canadafreepress.com


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