‘Asia Weekly’ Reports Edward Snowden’s Employer Funded by China

Edward Snowden, the former employee of a service contractor for the U.S. National Security Agency (NSA), has been holed up in Moscow since June 23. He has applied for political asylum in 21 countries. (See-ming Lee 李思明 SML.Flickr)
Edward Snowden, the former employee of a service contractor for the U.S. National Security Agency (NSA), has been holed up in Moscow since June 23. He has applied for political asylum in 21 countries. (See-ming Lee 李思明 SML.Flickr)

Edward Snowden, the former employee of a service contractor for the U.S. National Security Agency (NSA), has been holed up in Moscow since June 23. He has applied for political asylum in 21 countries.

Russian President Vladimir Putin said Snowden can only remain there if he stops leaking U.S. intelligence after President Obama demanded Snowden be returned to the U.S. on espionage charges. Among leaked information were U.S. plans to monitor the Internet.

Uncovered recently was the fact that Chinese money has been funding his former employer, potentially breaching U.S. intelligence on a larger scale. According to an investigative report in Asia Weekly, the founding capital of Snowden’s former employer, Booz Allen Hamilton Holding Corp., came from The Carlyle Group.

Ever since its establishment in 1987, The Carlyle Group has developed intimate ties with China’s political leaders and state-owned enterprises through business operations in China. The company was named the best private equity fund management organization of the year 2009 by China Venture Capital Association.

Clients of the Booz Allen Hamilton Holding Corp. include the U.S. Army, Air Force, Navy, Marines, NASA, Department of Homeland Security, Department of the Interior and a number of intelligence agencies, according to documents submitted by Booz Allen Hamilton Holding Corp. to the U.S. Securities and Exchange Commission.

The cooperation of the company, previously known as Booz Allen Hamilton Inc., with the U.S. Navy has lasted for more than 70 years, going back to the World War II era. In 2008, the company’s government consulting business was acquired by The Carlyle Group and since then has been operated as Booz Allen Hamilton Holding Corp.

The Asia Weekly investigation reveals a close relationship between The Carlyle Group and Chinese political executives. Among them is Liu Lefei, son of Liu Yushan, one of the seven Politburo Standing Committee members at the top of the Chinese Communist Party, and Jiang Zhicheng, the grandson of Jiang Zemin, former Chinese president and secretary general of the Chinese Communist Party.

edward snowden

The founding capital of Snowden’s former employer, Booz Allen Hamilton Holding Corp., came from The Carlyle Group, which has developed intimate ties with China’s political leaders and state-owned enterprises through business operations in China. (Screenshot)

The investigation also shows that the business connections between The Carlyle Group and their Chinese clients are through a Chinese company called China Cinda Asset Management Co., Ltd. Approved by China’s State Department and sponsored by the country’s Ministry of Finance, the company was established in 2010 with registered capital as high as 25.1 billion yuan (US$4.1 billion).

Two years later, China’s Social Security Fund, CITIC Capital Holdings Limited (a subsidiary of the CITIC Group Corporation) and two additional foreign companies joined the investor ranks, increasing the company’s registered capital to 30.1 billion yuan (US$4.9 billion).

In 2013, two additional companies were brought into the investor ranks. One was The Carlyle Group, and the other one was Boyu Investment Consulting Co., Ltd., founded by Jiang Zemin’s grandson, Jiang Zhicheng.

Born in the U.S. in 1986, Jiang Zhicheng is the son of Jiang Mianheng. In 2011, he established Boyu Investment Consulting Co., Ltd. in Hong Kong at the age of 25. The company intends to raise US$1 billion from the financial market for exploring merger and acquisition business in China.

 

Liu Lefei was born in 1973. He is the incumbent Chairman and CEO of the CITIC Private Equity Funds Management Co. Ltd. Liu is also a board member of CITIC Securities Co., Ltd.

The internal struggle between high-level Chinese political leaders has now extended to their offspring. Liu Lefei is the second generation and Jiang Zhichen belongs to the third generation.

The unraveling news from Western countries that the manipulator behind Snowden’s defection is linked to Liu and Jiang has hit a sensitive nerve among the Jiang Zemin faction in China. All web postings related to these allegations on Baidu, the most popular search engine in China, have been deleted.

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