How Lakshar -E-Toiba generates money?

by Rajeev Sharma*

(February 01, New Delhi, Sri Lanka Guardian) It is becoming clear that the US and other Western nations have failed to rein in one of the most resourceful and powerful terrorist group in the world, Lashkar-e-Toiba (LeT). The group has not only remained intact after the Mumbai attack of November 2008 but has grown manifold in the years since then, if the secret documents from the US State Department made public recently were to be read carefully.

According to the US State Department documents, the terrorist groups spends over $ 5 million every year to recruit, train and launch terrorists not only against India but also against the US and other western nations. This money was spent by Zaki-ur Rahman Lakhvi, the jailed LeT operations commander ``to purchase all materials required for LeT operations other than weapons and ammunition``.

The terrorist group generates this huge amount of money from private donations, NGOs, madrasas and business spread throughout South Asia, the Middle East and Europe. Substantial part of the funding comes from Saudi Arabia and Kuwati where LeT has considerable support not only among the Pakistani diaspora but also among muslims from other countries. Besides, the terrorist group also enjoys the patronage of the royal families and other higher ups in both these countries allowing it to solicit funds for terrorist activities quite openly.

The group, however, draws maximum from Pakistan where businessmen, industry leaders, farmers and others donate freely for the terrorist cause. These donations are collected throughout the year, across Pakistan, sometimes in the name of religion and often, openly, for `jihad`.

The documents said while parts of the funds were used for charitable purposes, large portions were diverted to strengthen its terrorist infrastructure. One report showed how LeT’s charity front, Idara Khidmat-e-Khalq, in December 2005 was issuing Jamaat-ud Dawa receipts for donations collected in Saudi Arabia. Jamaat is the parent body of LeT. The group operated through a ``front company in Saudi Arabia where an LeT finance official may have been closely associated with the general manager possibly acting as a front for moving LeT funds`` Another memo confirms that "Saudi Arabia remains a critical financial support base for al-Qa'ida, the Taliban, LeT and other terrorist groups, including Hamas, which probably raise millions of dollars annually from Saudi sources, often during Hajj and Ramadan."

Although Saeed himself do not travel abroad, fearing arrest or murder, it is his brother in law and second-in command of the terrorist group, Abdur Rahman Makki, who travels frequently to to Saudi Arabia and other Middle East countries to generate funds for the terrorist cause. He would often seek donations in the name of building a new school or upgrading madrasas in Pakistan. Highly inflated cost of constructions was projected to potential donors at a madrasa, enabling the group to siphon off the `charity` funds to terrorist activities.

Another method, revealed by the leaked cables, is to siphon off the money given to the group by Haj pilgrims. One memo said LeT leadership used the annual Haj pilgrimage for laundering money and cash from pilgrims. This, the memo says, was also used to finance the Mumbai terror attack. This finds confirmation in another memo which details how Saeed and Lakhvi had ``planned, directed, and executed LeT attacks throughout South Asia and likely have used some funds collected in the name of JuD’s charitable activities to support multiple LeT terrorist operations, including the November Mumbai attacks.``

Ironically, LeT is perhaps the only terrorist group in the world which gets grants from the government. Last year, the Punjab government gave a grant of close to $ 1 million to LeT’s parent body, JuD, banned by the UN and US, besides India and several other countries around the world, to run its chain of schools and welfare organisations.

Since it is clear that Pakistan, despite the international pressure, will not do anything to weaken its `strategic asset`, the international community must step up its pressure and activities to stem the financial flow to the terrorist group. This must be done urgently and on a global level to starve the terrorist group of funds without which it will die a natural death.

*The writer is a New Delhi-based strategic analyst and a senior journalist who has authored five books on foreign policy, strategic issues and terrorism.