UK
CRISIS CAPITALISM: OCTOPUS ENERGY


INVESTIGATION
28 November 2022

In the third installment of Heat the Rich – an investigative series on energy firms profiting from the cost of living crisis – Corporate Watch takes a critical look at the UK’s fourth-biggest energy supplier, Octopus Energy.
Image description: A remote-controlled light switch is operated on by a nearby smartphone.
Credit: Green energy futures/Flickr

Octopus Energy Ltd is the fourth biggest energy supplier in the UK currently controlling around 11% of the energy supply market. It is the newest supplier in the big six, trendy enough to be reviewed by Vogue and posed as a ‘solution’ to “a broken, inefficient market”.

Originally launched in the UK in 2016, Octopus Energy Group Ltd now operates in 13 other countries with 23 million customer accounts. Its model is supposedly a “cheap green energy system” funded by “high sums of investment”.

But the Octopus name is not limited to the energy market. In 2018, it was listed as managing over £7 billion in assets with over 50,000 investors, Since then, it’s continued to grow, Octopus now operates eight distinct businesses: Octopus Energy, Octopus Investments, Octopus Healthcare, Octopus Ventures, Octopus Real Estate, Octopus Moneycoach, Octopus Renewables, Seccl and Octopus Wealth.

According to co-founder Christopher Hulatt, the group takes a holistic approach: “by building companies with one purpose – the relentless pursuit of ‘better’.” But better for who? Better for the pockets of Hulatt and wealth investors or for energy customers…Suffice to say, this isn’t covered in the Octopus Energy Ltd podcast on the Energy Crisis.

HOW MANY UK ENERGY CUSTOMERS DOES OCTOPUS ENERGY HAVE?

Electricity (excluding pre-payment): 3.1 million

Gas (excluding pre-payment): 2.7 million

WHO OWNS IT?

Touted as an “independent supplier” by Forbes. Octopus Energy is in fact part of a group, that is ultimately owned by OE Holdco Ltd.

At the start of the tax year in April 2022, OE Holdco Ltd, a UK-based holding company, was owned by the co-founder of Octopus Energy, Christopher Hulatt. But mysteriously, since the end of September OE Holdco Ltd has no listed owner. Hulatt and Octopus co founder Simon Rogers remains two of the three directors of OE Holdco Ltd, the third directorship is held by Octopus Company Secretarial Services Ltd.

OE Holdco Ltd was formed back in March, at the same time as families around the UK were plunged further into the cost of living crisis. Already by September, it has become the ultimate parent company of the Octopus Group. It’s certainly one to keep eye on when annual accounts are due.

IS OCTOPUS ENERGY SUFFERING AS A RESULT OF THE COST OF LIVING CRISIS?

It doesn’t seem so, in fact, Octopus Energy appears to be going from strength to strength. According to the company’s accounts from 2021, it recorded record revenues of £1.9 billion in 2021 with profits at £25 million. Bouncing back from a loss of £47 million in 2020.

The Octopus Group, with its fingers in many pies, celebrated a revenue of £2 billion in 2021, £800 million more than in 2020, a 62% increase.


Whilst the ultimate parent company OE Holdco Ltd is too new to file accounts, the Octopus Capital Ltd’s accounts for 2021 show that energy supply is the key moneymaker for the group, accounting for 85% of the total turnover. The group is also expanding internationally through acquisitions in Japan and the USA. The cherry on the cake is that the Group paid dividends of £17.7 million in 2021 in comparison to £3 million in 2020 highlighting that right now business is booming for the Octopus Group, despite the ongoing cost of living crisis.

WHO RUNS IT?

Legend has it that Octopus was started in Chris Hulatt’s bedroom, when Hulatt, Simon Rogerson, and Guy Myles founded the company in 2000. Hulatt and Rogerson remain at the top, while Myles left in 2014 to set up a financial investment company.

Day to day, Hulatt specialises in two things: hunting for investments for Octopus worldwide and cosying up to the UK government through meetings with politicians and ministers. A Cambridge graduate, Hulatt owns over 75% shares of Octopus Group Holdings Ltd and is the director of 30 companies on Companies House including Octopus Energy Ltd. With no official position apart from ‘co-founder’ Hulatt’s salary from Octopus businesses is difficult to measure. But what remains certain, is that Hulatt is not feeling the bite from the energy crisis: with a net worth of £276 million. Outside of the Octopus business, Hulatt is the Chairperson of Enthuse, a digital donation tech company, and the non-executive director of ClearlySo an investment bank.

Simon Rogerson is the chairperson of Octopus Investments, the CEO of both the Octopus Group and OE Holdco Ltd. He is listed as the director of 26 companies and was educated at the University of St Andrews. Rogerson is likely to have taken home at least £663,000 in 2021 as the highest-paid director of Octopus Capital Ltd. But Rogerson’s pockets go a lot deeper than one remuneration. According to business information databases, Rogerson owns 11% of shares at his workplace, making him the biggest single shareholder of the Octopus Group. Rogerson’s net worth is as high as £229 million.

Greg Jackson is the CEO and founder of Octopus Energy Group. Jackson is likely to be earning a salary upward of £169,000 as the highest-paid director of Octopus Energy Group Ltd. Celebrated in iNews, Jackson was seen as a bit of an angel after he gave up £150,000 in autumn 2021 “when the energy crisis began to bite”. But despite a relatively low salary he’s well-placed to make such a “selfless act” because Jackson’s 6% stake in the renewables branch of Octopus means he’s estimated to be worth around $300 million (over £265m).

Aside from Octopus, Jackson is the chairperson of Consultant Connect UK, a private tech business profiting from NHS privatisation through referral management.

THE OCTOPUS ADD-ON? KRAKEN TECHNOLOGY

In addition to cashing in on supplying energy, the Octopus Energy Group has another trick up its sleeve: Kraken Technology – which is part of the Octopus Energy Group

Kraken Technology provides data services to manage energy usage. Kraken’s platform manages “billing, payments, meter data management, CRM, customer communications, digital self-service, contact centre telephony, industry and market connections (and more)”. It appears that through Kraken Technology services Octopus has made a name for itself in the playground of the Big Six, even convincing its competitors like EDF and e.on to buy up its license. Now, 40% of the British market is licensed to Kraken.

DOES THE COMPANY AVOID PAYING TAXES?

Octopus Energy seems to be in the clear. But it’s one to look out for, as OE Holdco is yet to publish its first set of accounts, and has no publicly registered owner.

Moreover, the majority of companies owned by Octopus Investments Ltd are registered as LLPs, which fall under a different tax system in that the LLP itself is not taxable, untaxed profits are distributed to members who then pay tax through a self-assessment tax return.

The Octopus Group certainly doesn’t shy away from speaking about business tax to the government. In May 2022, Octopus Group attended a meeting on business taxation at the HM Treasury with Lucy Frazer MP alongside Uber and BP amongst others.

POLITICAL DONATIONS IN THE UK

In 2018 Octopus Investments Ltd donated £12,500 to the central Conservative party. Co-founder, Christopher Hulatt, donated a further £2,500 to the party’s local branch Hitchin & Harpenden (Hulatt’s home constituency) in 2019.

Hulatt’s donation fuelled controversy after Open Democracy revealed it had preceded former chancellor – and now Prime Minister – Rishi Sunak’s, selection of Octopus Investments to manage the government’s £100m “sustainable infrastructure fund”, the UK Infrastructure Bank (UKIB).

DOES THE COMPANY HAVE CLOSE RELATIONSHIPS WITH THE GOVERNMENT?

Yes. As Octopus co-founder Christopher Hulatt put it: “I spend most of my time focusing on…maintaining strong relationships with the UK government and MPs”.

In October 2020, Rishi Sunak alongside Boris Johnson appear to have done PR for Octopus Energy, promoting the company in an official 10 Downing Street video at the Octopus Energy HQ. Between 2020-2022 Octopus had four meetings with former UK prime minister Boris Johnson. This included one solo meeting to discuss energy technology and sustainability in October 2020 as well as a further 125 meetings with ministers to discuss energy: retail, innovation, efficiency and security.

In 2018, Hulatt spoke at the Conservative party conference as part of an event on ‘Boosting Consumer Capitalism’ organised by the right-wing Adam Smith Institute. Fellow speakers included Hulatt’s local Conservative MP, Bim Afolami, and Conservative MP John Penrose.

In 2020, Hulatt was part of the Unlock Britain Commission set up by the aforementioned Bim Afolami to produce a report for the Social Market Foundation to design “10 transformative policies for Britain after the Coronavirus crisis”. Other advisors included top figures from ASOS Plc and PwC.

In 2021, Hulatt led a training on “How to build a nation of entrepreneurs” with Conservative MP and Minister of State for Local Government and Building Safety, Paul Scully as part of The Entrepreneurs Network (TEN).

Last but by no means least, at the end of September when Octopus changed things up, Stuart Quickenden was brought on board as a director for the Octopus Group. Quickenden was a board member for the Department for Business, Energy and Industrial Strategy (BEIS) between 2017 to 2020. So no doubt he will have some useful contacts to make Octopus Energy’s relationship with government even cosier.

NEW INTERNATIONALIST

UK
Ghoul Penny Mordaunt renames foodbanks thinking it’ll fool people

Tory MP, failed leadership candidate, and current leader of the House of Commons Penny Mordaunt has caused uproar on social media. She tweeted a video of herself promoting a new initiative in her constituency city of Portsmouth: Mordaunt is opening a handful of foodbanks. However, the MP has decided to call them something else, in a bid to make her move slightly less awful than it actually is.
Mordaunt’s food ‘pantries’, not ‘foodbanks’

As the News reported, Mordaunt is paying for three food “pantries” (not ‘foodbanks’ – ‘pantries’) to open in Portsmouth. She’s funding it from the royalties of a book she wrote. The News said that these pantries are where:

people facing financial difficulties can buy heavily-discounted groceries.

Yes, we know. That’s a foodbank – right? Well, not if you’re Mordaunt. The News continued, implying that unlike foodbanks:

No referral is needed to access them.

Never mind the fact that people don’t need a referral from places like Citizens Advice to access many independent foodbanks, anyway. So, what is the difference between Mordaunt’s pantries and a foodbank? The News revealed that:

a typical weekly shop bought through them would cost as little as £4.

Right – so you have to pay for the food. Now it’s making sense. Essentially, Mordaunt admits people are too poor to afford food, so has set up a load of discount shops under the guise of helping her community – which are foodbanks in all but name (and the fact people have to pay). Her party’s governments have caused poverty to skyrocket. Yet Mordaunt is so proud of her pantries that she filmed a video telling us all about them.
“They’re NOT foodbanks”

Mordaunt said that:


Food pantries are a great scheme that can help families reduce their food bills by about £800 a year. They’re not foodbanks where you need to be referred in. They’re open to everyone, and for a few pounds a week you can get a decent shop.

Naturally, people on Twitter weren’t having Mordaunt’s nonsense. TV host professor Alice Roberts noted the foodbank overtones of Mordaunt’s pantries, while also highlighting her cynicism:

Someone else pointed out the gaslighting:

And as writer Will Black implied, rebranding foodbanks is pretty ghoulish:


Nothing says out of touch and dishonest as Tories talking about "opening" "food pantries"

Causing and exploiting for PR isn't the same as opening / running @PennyMordaunt

And no working class person who isn't a maid or butler has said pantry for 50 years https://t.co/GuP7OPh1ES

— Will Black (@WillBlackWriter) December 8, 2022

Ghoul

As Tribune Magazine wrote:

In 2010, 60,000 food bank packages were handed out in Britain. Last year, it was 2.5 million. This is the result of political choices – and the cost of living crisis will see millions more fall into food poverty.

The Tories have been in power all that time. So, Mordaunt would never admit that foodbanks were a scourge of successive governments – that would implicate her in the horror. Instead, this ghoul chooses to gaslight everyone who has to use them – by rebranding them and making our she has a charitable nature in the process. Mordaunt is supposed to be the palatable face of the Tories – yet here she is, running around trying to appeal to the ‘squeezed middle’ with this ‘food pantry’ dross. Beyond rancid.

 Biden announces $36B to aid union workers' pensions

(8 Dec 2022) President Joe Biden announces the infusion of nearly $36 billion to shore up a financially troubled union pension plan, preventing severe cuts to the retirement incomes of about 350,000 Teamster workers and retirees across the United States.

JOINT STATEMENT
Human Rights Organizations Call for Strengthening Democracy in Peru

8 December 2022.

Yesterday, Peru’s Congress voted to remove then-President Pedro Castillo after he declared the dissolution of Congress, the reorganization of the justice system, and the imposition of a state of exception, which clearly violated the country’s Constitution. Later that day, Congress swore in Vice President Dina Boluarte as President of the nation.

As international human rights organizations, CEJIL, DPLF, and WOLA have accompanied the efforts of Peruvians to construct a democracy based in the rule of law which respects the human rights of its people. It is because of this that we call on the international community to exhort Peruvian authorities and political actors to promote long-term solutions to strengthen democracy and restore the balance of power in their country. The crisis Peru faces reveals the continued and sustained institutional deterioration of different branches of government. Among these are Pedro Castillo’s failed attempt to dissolve Congress and the abusive use of multiple constitutional figures by the legislature. 

We hope that the President, as well as the Legislature, the Judiciary, and other state institutions, social groups, and civil society, will advance a common agenda that guarantees a democratic solution for Peru. In particular, political reforms are desperately needed in a country where no president has finished the normal five-year presidential mandate since 2016.

To this end, we ask the international community to help facilitate a broad and inclusive dialogue among the various state institutions. We hope that such a process will facilitate efforts to address the structural causes that generated the crisis, and that it will encourage democratic and lasting solutions for Peru.

Washington Office on Latin America (WOLA)

Due Process of Law Foundation (DPLF)

Center for Justice and International Law (CEJIL)

‘SELF-COUP’ BACKFIRES FOR PERU’S PEDRO CASTILLO


ANALYSIS
8 December 2022
Peru


Vanessa Baird explores an episode of political suicide and high drama, extraordinary even by Peru’s standards.

Then-president Pedro Castillo takes part in an official ceremony in July, 2021.
PresidenciaPeru/Flickr

It was quite a day for Peru and Pedro Castillo. Shortly after 11 am on Wednesday 7 December, the then president was announcing a coup d’état, a state of emergency and an immediate dissolution of the Congress that was due to vote, that day, on whether or not to impeach him for alleged corruption.

In a televised address, and with hands trembling, Castillo announced ‘we have decided to establish an exceptional government’ and ‘a new Congress with constituent powers to draw up a new constitution’ which would be convened ‘within no more than nine months’.

A few hours later he was in police custody, accused of ‘rebellion against constitutional order’ and his vice-president Dina Boluarte, having decried his shocking ‘self-coup’, was being sworn in as Peru’s first female president.

Even Castillo’s own (now ex-) lawyer Ben ji Espinoza was blindsided. He told the left-of-centre La Republica daily that when he had spoken with Castillo at 9 am that morning, he had no inkling of what was to happen two hours later.

Most likely Castillo would have survived this third attempt to impeach him as his enemies in the hostile right-wing dominated Congress did not have sufficient numbers to win the vote.
Castillo has responded to problems by changing ministers with a frequency with which most leaders might change their socks

But, said the lawyer, Castillo seemed to have gone behind his back and ‘followed the worst possible advice’. It was an act of ‘political suicide’, Espinoza added.

Most of Castillo’s ministers seemed to agree. One after another they resigned shortly after his address was televised. A handful of advisors waited until after he was impeached. That was to come speedily. An emergency session of Congress was called and 101 members voted to impeach Castillo (including members of his former party, Free Peru), 10 abstained and only 6 voted against. Never had Congress seemed so united.


UNDER CONSTANT ATTACK

Castillo, often described in international media as a ‘leftist’ president, had been under attack from the moment he beat right-winger Keiko Fujimori in a surprise electoral win in July 2021.

The former primary-school teacher, a political neophyte, gained popular support in the elections for not being part of the political elite represented by the front-runner Keiko Fujimori, daughter of the corrupt and imprisoned dictator, Alberto Fujimori.

Few of Castillo’s pro-equality political promises were to see the light of day. His rule has been characterized by chaos and internal division as well as external hostility. Criticism on his leadership came from all sides, politically; in the media it often took the form of classism and racism.

The ongoing conflict between the executive and Congress had a paralyzing effect on governance, making bad things worse. Peru suffered the worst death rate in the world from Covid-19. It is now one of the countries most afflicted by food insecurity and the global cost of living crisis.

Castillo has responded to problems by changing ministers with a frequency with which most leaders might change their socks. ‘All he does is hand out posts,’ commented Peruvian former advisor and academic Carlos Monge, in a recent web conference of the Peru Support Group, adding that it was impossible to engage the president on policy matters.

The poncho-wearing leader made much of his Indigenous roots, but the country’s Indigenous groups saw little in terms of action on territorial rights or defence of Indigenous people, with illegal logging and cattle ranching expanding under this watch.

One positive lesson to emerge from the drama is that the attempted coup was such an abject failure

However, Castillo’s ability to hold on to power, for 16 months, has been a real achievement by national standards – in 2020 Peru had three presidents in the course of just five days.

Corruption has been constant feature in Peruvian politics in recent decades, and it is no surprise that Castillo was facing serious allegations, which he denied and dismissed as an attempt to oust him from power.

‘NATIONAL UNITY’

Also unsurprising is that confronting corruption was top of the list of the country’s new president, Dina Boluarte, at her fast-tracked swearing-in on Wednesday.

In her speech, the 60-year-old lawyer, who was recently elected vice-president alongside Castillo, highlighted her humble background – similar in some ways to her former running mate’s. She was the youngest child of a poor family in rural Apurimac, who worked her way up to high positions in the legal profession.



She also called for a political truce and for ‘national unity’. Responding by tweet, her main political opponent, Keiko Fujimori, has welcomed the move, saying this is ‘not the time for left or right’ but for unity. This might suggest a thawing in the standoff between the executive and congress which has so paralyzed governance. It remains to be seen, however, if Boluarte avoids capture by the Right (a criticism levelled against Castillo) and can govern in such a way as to build unity. Just months after her election as vice-president, Boluarte was expelled from her party after she said in a newspaper interview she had never shared ‘the ideology of Free Peru’.

It’s also worth pointing out that among the population, Congress has been enjoying approval rates even lower than ex-president Castillo’s. ‘Que se vayan todos,’ the slogan made famous in Argentina and roughly translated as ‘to hell with the lot of them’, probably captures the mood.

One positive lesson to emerge from the drama is that the attempted coup was such an abject failure. It got no support from the country’s main institutions, including the combined armed forces and the police, the Catholic Church, or any political party. This was hailed by La Republica’s political commentators as a sign that Peruvian democracy might not be in such a parlous state as feared.

Boluarte’s presidency was swiftly recognized by other countries in the region, including the Organisation of American States. Most leaders had lamented Castillo’s coup attempt, including his closest ally, Mexican leader Andrés Manuel López Obrador, although he offered him political asylum in Mexico.

Boluarte indicated at her inauguration that she intends to rule until 2026, the date when Castillo’s presidency was due to end. But there are already some calls for earlier elections. Another space to watch.

Vanessa Baird

Vanessa Baird lived and worked as a journalist in Peru during the tumultuous mid-1980s, and she maintains a passionate interest in South America. She joined New Internationalist as a co-editor in 1986 and since then has written on everything from...

https://newint.org/

RIGHT WING CONGRESS

Protesters take to the streets in Lima after Peruvian president’s impeachment


Hundreds of demonstrators have taken to the streets of Peru's capital Lima on Wednesday after Congress approved the impeachment of Peruvian President Pedro Castillo, who has been detained at the Lima Prefecture headquarters.


Demonstrators in Peru (Archive) - CARLOS GARCIA GRANTHON / ZUMA PRESS / CONTACTOPHOT© Provided by News 360

With a strong police presence, dozens of demonstrators have gathered in front of the Congress on Abancay Avenue with Peruvian flags, banners and horns to celebrate the dismissal of Castillo in a march that was announced on Tuesday under the name "Toma de Lima" (Take over Lima).

Related video: Peru's President Impeached by Congress After He Announces Rule by Decree (Wibbitz - News)  Duration 1:30   View on Watch

Peru Congress vote to oust President Castillo after shut-down threatMetro



Peru's president faces third impeachment attempt

Before Congress approved a motion of censure against him with 101 votes in favor, Castillo announced his dissolution, as well as the formation of a government of exception and a curfew from 10 p.m. (local time) until 4 a.m. to avoid altercations.

The Spanish Embassy in Peru has recommended Spanish citizens to avoid going near the areas where rallies are taking place in Peru and to limit travel "to the minimum necessary".

Latin American governments express concern over the political situation in Peru

Different Latin American governments have expressed their concern on Wednesday about the serious political crisis in Peru after the Congress dismissed President Pedro Castillo, who has been detained at the Lima Prefecture headquarters.


Archive - Pedro Castillo, Peru's ousted president - PRESIDENCIA DE PERÚ© Provided by News 360

"Argentina regrets and expresses its deep concern over the political crisis that the sister Republic of Peru is going through, and calls on all political and social actors to safeguard democratic institutions, the rule of law and constitutional order," the Argentine Foreign Ministry said in a message on its Twitter profile.

Related video: Peruvian President to reshuffle cabinet following resignation of PM (WION)
Duration 2:39
View on Watch

In the same line, the Ecuadorian Foreign Ministry has expressed itself, which has also made an appeal on the aforementioned social network to political actors to maintain "the rule of law and democracy".

For its part, the Brazilian government has issued a statement in which it assures that it follows "with concern" the situation in the country and in which it stresses that the measures adopted by Castillo are "incompatible with the constitutional framework", and therefore represent "a violation of the validity of democracy and the rule of law".

The Chilean Government has also reacted, which through the Ministry of Foreign Affairs has sentenced in a communiqué that it trusts that the crisis affecting "a brother country" can be solved "through democratic mechanisms".

The Mexican Minister of Foreign Affairs, Marcelo Ebrard, has previously pronounced and announced that the Pacific Alliance summit is suspended. "Mexico regrets the latest events in Peru," he said.

Mexico is willing to grant asylum to Pedro Castillo

Mexico's Foreign Minister Marcelo Ebrard said on Wednesday that his country is willing to grant asylum to the hitherto president of Peru, Pedro Castillo.


Archive - Mexican Foreign Minister Marcelo Ebrard and Mexican President Andres Manuel Lopez Obrador - Marco González/NOTIMEX/dpa© Provided by News 360

"If Pedro Castillo asks for asylum in Mexico, we will give it to him, but he has not requested it," Ebrard explained in an interview for the program Atando Cabos of the radio station Radio Fórmula.

The head of Mexican diplomacy in 2019 offered political asylum to former Bolivian President Evo Morales. The former Bolivian president had formally presented the request to the Mexican government days before after allegations of electoral fraud. Two days after his departure from the country, Jeanine Áñez proclaimed herself president.

Ebrard, moreover, has shown himself to be "very concerned". "I am very attentive to the situation. The president (of Mexico, Andrés Manuel) López Obrador has asked me to inform him at all times," he said in statements to the aforementioned radio station.

After learning of Castillo's dismissal, the Mexican Foreign Ministry announced that the Pacific Alliance Summit, which was scheduled for next Wednesday in the Peruvian capital, has been postponed.

Dina Boluarte sworn in as Peru’s new president, the first in the country’s history

Dina Boluarte was sworn in on Wednesday as the new president of Peru, thus becoming the first in the country's history, since as vice-president, as required by the Constitution, she had to take office following the dismissal of Pedro Castillo by Congress.


The president of Peru, Dina Boluarte. - 

"I swear by God, by the homeland and by all Peruvians that I will faithfully exercise the office of President of the Republic, which I assume in accordance with the Constitution, from this moment until July 26, 2026", she said after receiving the presidential sash from the hands of the President of Congress, José Williams Zapata.

"I will defend national sovereignty, the physical and moral integrity of the republic and the independence of democratic institutions. I will comply with the Constitution and the laws of Peru, recognizing the freedom of worship and the moral formation of Peruvians", said Boluarte with his hand on the Bible.

"This difficult conjuncture puts all of us citizens on trial. Before being a politician, I am a citizen and a Peruvian mother who is fully aware of the responsibility that history places on my shoulders," she said later in her first speech as president of Peru.

"There has been an attempted coup d'état, an imprint promoted by Mr. Pedro Castillo, which has not found an echo in the institutions of democracy and the street. This Congress, in accordance with the constitutional mandate, has made a decision and it is my duty to act accordingly", she stressed.

In her first speech before Congress as president, Boluarte called for "the unity of all Peruvians", earning applause from the floor. "It is up to us to talk, to dialogue, to reach an agreement, something so simple, but so impracticable in recent months," she lamented.

"I call for a broad process of dialogue among all the political forces represented or not in Congress", said Boluarte, who asked for a "political truce to install a government of national unity" and "the support of the Public Prosecutor's Office to enter into the structures corrupted by the mafias".

Although during the last months Boluarte said that in case Castillo was dismissed by the Congress, she would go with him, the last actions of the already ex-president have made her change her mind and from the first moment she has been categorically against what she has defined as "a coup d'état".

Boluarte had combined her position as Vice President of Peru with that of Minister of Social Development until November of this year when Betssy Chávez was elected as the new Prime Minister.

Now she will have to deal with a Congress in which she does not have a bench and hardly any parliamentary allies to support her, after she recently left Peru Libre, and which for two decades has shown itself to be an ungovernable and hostile space towards all presidents.

Peru's president ousted by Congress in political crisis

Yesterday 

LIMA, Peru (AP) — The president of Peru was ousted by Congress and arrested on a charge of rebellion Wednesday after he sought to dissolve the legislative body and take unilateral control of the government, triggering a grave constitutional crisis.


Peru's president ousted by Congress in political crisis© Provided by The Canadian Press

Vice President Dina Boluarte replaced Pedro Castillo and became the first female leader in the history of the republic after hours of wrangling between the legislature and the president, who had tried to prevent an impeachment vote.

Boluarte, a 60--year-old lawyer, called for a political truce and the installation of a national unity government.

“What I ask for is a space, a time to rescue the country,” she said.

Lawmakers voted 101-6 with 10 abstentions to remove Castillo from office for reasons of “permanent moral incapacity.”

He left the presidential palace in an automobile that carried him through Lima’s historic downtown. He entered a police station and hours later federal prosecutors announced that Castillo had been arrested on the rebellion charge for allegedly violating constitutional order. Witnesses saw some small-scale clashing between police and some protesters who had gathered near the station.

“We condemn the violation of constitutional order,” federal prosecutors said in a statement. “Peru's political constitution enshrines the separation of powers and establishes that Peru is a democratic and sovereign Republic ... No authority can put itself above the Constitution and must comply with constitutional mandates.”

Fluent in Spanish and Quechua, Boluarte was elected as vice president on the presidential ticket that brought Castillo to power July 28, 2021. During Castillo’s brief administration, Boluarte was minister of development and social inclusion.

Shortly before the impeachment vote, Castillo announced that he was installing a new emergency government and would rule by decree. He ordered a nightly curfew starting Wednesday night. The head of Peru's army then resigned, along with four ministers, including those over foreign affairs and the economy.

The Ombudsman's Office, an autonomous government institution, said before the congressional vote that Castillo should turn himself in to judicial authorities

After years of democracy, Peru is in the midst of a constitutional collapse “that can't be called anything but a coup,” the statement said.

International reaction was at times outpaced by events.

United States Amb. Lisa Kenna called on Castillo via Twitter to reverse his decree to dissolve Congress, saying the U.S. government rejected any “extra-constitutional” actions by the president to interfere with Congress.

A short time later the Congress voted to remove Castillo.

Mexico Foreign Affairs Secretary Marcelo Ebrard said via Twitter that given recent events in Peru, Mexico had decided to postpone the Pacific Alliance summit scheduled for Dec. 14 in Lima. He said he regretted the recent developments and called for democracy and human rights to be respected.

The administration of Chilean President Gabriel Boric lamented the political situation in Peru and trusted that the crisis would be resolved through democratic mechanisms. Spain's government strongly condemned the break in constitutional order and congratulated the country on righting itself democratically.

Castillo had said in an unusual midnight address on state television ahead of the vote that he would never stain “the good name of my honest and exemplary parents, who like millions of Peruvians, work every day to build honestly a future for their families.”

The peasant-turned-president said he’s paying for mistakes made due to inexperience. But he said a certain sector of Congress “has as its only agenda item removing me from office because they never accepted the results of an election that you, my dear Peruvians, determined with your votes.”

Castillo has denied allegations of corruption against him, saying they’re based on “hearsay statements by people who, seeking to lighten their own punishments for supposed crimes by abusing my confidence, are trying to involve me without evidence.”

Federal prosecutors are investigating six cases against Castillo, most of them for alleged corruption, under the theory that he had used his power to profit from public works.

The power struggle in Perú’s capital has continued as the Andes and its thousands of small farms struggle to survive the worst drought in a half-century. Without rain, farmers can’t plant potatoes, and the dying grass can no longer sustain herds of sheep, alpacas, vicuñas and llamas. Making matters worse, avian flu has killed at least 18,000 sea birds and infected at least one poultry producer, endangering the chicken and turkeys raised for traditional holiday meals.

The government also confirmed that in the past week, the country has suffered a fifth wave of COVID-19 infections. Since the beginning of the pandemic, 4.3 million Peruvians have been infected, and 217,000 of them have died.

The first president to come from a poor farming community in the nation’s history, Castillo arrived in the presidential palace last year without any political experience. He changed his cabinet five times during his year and a half in office, running through 60 different cabinet officials, leaving various government agencies paralyzed.

Although Castillo is the first president to be investigated while still in office, the probes are no surprise in a country where nearly every former president in the last 40 years have been charged with corruption linked to multinational corporations, such as the Brazilian construction firm Odebrecht.

Since 2016, Perú has been entrenched in political crises, with congresses and presidents trying to eliminate each other in turn. President Martín Vizcarra (2018-2020) dissolved Congress in 2019 and ordered new elections. That new legislature removed Vizcarra the next year. Then came President Manuel Merino, who lasted less than a week before a crackdown killed two protesters and injured 200 more. His successor, Francisco Sagasti, lasted nine months before Castillo took over.

Franklin Briceño, The Associated Press

What is the Reichsbürger movement accused of trying to overthrow the German government?

Police lead Heinrich XIII Prince Reuss away from a house in Hessen, Frankfurt after a raid on December 7. Alamy/dpa picture alliance

THE CONVERSATION
Published: December 8, 2022 

Police have arrested 25 people accused of planning to overthrow the German government in a series of raids across the country.

The group is accused of trying to instate Heinrich XIII – a descendant of German royalty – as their leader. Among those arrested were members of the Reichsbürger (which translates as citizens of the Reich), a disparate movement of groups and individuals, including some with extreme-right views.

Reichsbürger adherents have been stopped from attempting violent action before, but this latest incident and its alleged members have caused greater concern.

A former member of the German parliament, who was also a judge until shortly after her arrest, was among the group. Birgit Malsack-Winkemann was a parliamentary deputy for the far-right Alternative für Deutschland (AfD), but left the party in 2021.

Several former soldiers were also arrested in connection with the coup plot. This is a cause for great concern for law enforcement, as such ties give possibly dangerous extremists access to weapons and trained individuals.

Earlier in 2022, Heinrich XIII was reported in the German press as being close to the Reichsbürger scene and a believer of conspiracy theories, prompting his family, the House of Reuss, to publicly distance themselves from him.

He does not, however, have a high profile, apart from a 2019 speech at the WorldWebForum conference in Switzerland, which contained an antisemitic and historical revisionist message. The involvement of an aristocrat speaks to the monarchist motivations of some Reichsbürger, who wish to reinstate a Kaiser as head of state.

What do the Reichsbürger believe?

The Reichsbürger do not have a centralised structure but are estimated to have at least 21,000 supporters. Their key belief is that the current German state (the Bundesrepublik or Federal Republic), its institutions and democratically elected representatives are not legitimate.

Supporters of the movement refuse to adhere to state authority, such as by paying taxes. They became notorious in the early years of the pandemic for refusing to comply with COVID-19 restrictions.

Some adherents to the movement consider that official German passports and ID cards are illegitimate. While some prefer to use an official certificate of citizenship (called a gelber Schein or yellow certificate), others manufacture their own illegal passports and driver’s licenses. These will often include former German states as places of birth, such as the kingdoms of Bavaria or Prussia. In 2021, a German civil servant was removed from office after he applied for a passport with the Kingdom of Bavaria listed as his birth state.

Members of the group generally believe that some previous version of the German state is in fact the legitimate form – though there is some inconsistency as to which.

Some supporters believe Germany’s true form existed between 1871 and 1918, when the German Reich was established following unification and before the first world war. Others cite the constitution of the interwar Weimar Republic as that of the true Germany. And others still focus on 1937 to demonstrate what they perceive as the legitimate boundaries of German territory, which then included the former Kingdom of Prussia, now Poland and Russia, but not Austria, which was annexed in 1938.

One vision of the ‘true’ Germany amongst this extremist group dates back to before the first world war. Wikipedia, CC BY-SA

A uniting belief among the Reichsbürger is that the current German state lacks sovereignty. They think the western allies (France, the UK and US) supposedly retained control after their occupation of West Germany ended in 1955. Therefore, some believe that the current German state is a puppet regime which does not support the interests of the German people.

They sometimes refer to it as Deutschland GmbH (Limited), implying it has no power over itself and exists only to enrich its controllers. The name BRD GmbH is also used, referring to the abbreviated name for post-war West Germany.

Revisionist history and antisemitism

The focus on historical revisionism and erasure of German sovereignty can encourage a conception of Germany as a blameless country with uncomplicated pride. By focusing on pre-war borders and overlooking post-war history, the Reichsbürger can ignore Germany’s defeat in the second world war, as well as its process of coming to terms with its Nazi and colonial past, notably the Holocaust and the 1904 Herero and Nama genocide in Namibia. The removal of these dark moments in German history enables the movement’s supporters to focus on their own perceived victimisation as subjects of a German state which they do not recognise.

A similar revisionism is common in the wider German far right, notably some members of the populist AfD party. Repudiation of the Holocaust’s importance and an emphasis on “positive” moments in German history encourages Holocaust relativisation and antisemitism.

However, unlike the AfD, which has adapted its rhetoric to fit into the political mainstream, some Reichsbürger followers entirely disregard current German laws banning Holocaust denial and the dissemination of Nazi propaganda. The group is linked to overt antisemitism and the spread of antisemitic conspiracy theories about the power of “high finance” as well as outright Holocaust denial. In March 2020, German police seized neo-Nazi propaganda during raids on the homes of some Reichsbürger members.

However, the historical revisionism can confuse the picture. Although many of its adherents are antisemitic and glorify the colonial past, the Reichsbürger is not specifically defined as a group of right-wing extremists. In truth, only a small portion of the movement can be defined as such.

Birgit Malsack-Winkemann, pictured in court after a prior arrest in October 2022. Alamy/dpa picture alliance.

At its core, right-wing extremism is largely defined as anti-democratic. While many Reichsbürger refuse to endorse the legitimacy of Germany’s current democratic state, the lack of unified vision within the movement makes it unclear which system would be preferable, the constitutional monarchy of Kaiser Wilhelm II, the democratic experiment of Weimar Germany or the dictatorship of Nazi Germany. However, in the case of the most recent plot, the key role of Heinrich XIII implies that the goal was the restitution of a constitutional monarchy in the style of Kaiser Wilhelm II’s regime.
Growing threat?

Some Reichsbürger followers are evidently beginning to engage in political violence. The latest arrests follow multiple other incidents. In 2016, a police officer was killed during a raid on a member of the movement’s illegal collection of weapons. In August 2020, members of the Reichsbürger attempted to enter the German parliament as part of a protest against COVID-19 restrictions.

The presence of former military figures and a former parliamentarian among the most recently arrested group suggest the Reichsbürger are not without potential influence. The AfD has long denied any links to the movement, but has been shifting further and further to the right in recent years. In 2019, the German interior ministry reported that it had identified some isolated connections between the Reichsbürger and the AfD.

The Reichsbürger could be viewed as a fringe group but their ideas clearly appeal to some enough to convince them a coup is a worthwhile undertaking. And links to more influential organisations would make them more dangerous – which is why this matter has been taken so seriously by the authorities.

Author 

Claire Burchett
PhD candidate in European Politics, King's College London
Disclosure statement
Claire Burchett receives funding from the London Arts & Humanities Partnership.
Partner

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https://plawiuk.blogspot.com/2022/12/conspiracies-are-right-wing-dozens.html

AMERIKANS MAKE IT ALL ABOUT THEM

QAnon-inspired group accused of plotting violent German coup

Story by Anna Noryskiewicz •

Germany arrests dozens as group accused of plotting to overthrow government

Duration 1:20

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Berlin — Police have arrested at least 25 people tied to an alleged right-wing extremist plot to overthrow Germany's government. The group targeted in about 130 raids across Germany was described by prosecutors as being influenced by QAnon conspiracy theories and espousing a doctrine similar to that of far-right groups in the U.S. and across Europe.

Germany's Federal Prosecutor General is now investigating the suspected right-wing terror group, which calls itself Reichsbürger, for allegedly planning an attack on the Bundestag, Germany's parliament, as part of a violent coup to overthrow the government.

The investigators' trail leads to a member of a former Germany royal family as the purported figurehead, a former parliamentarian from the far-right AfD political party, and of particularly concern to the investigators, to former members of the German military's special forces.


Masked police officers escort Heinrich Reuss, also known as Prince Heinrich XIII, after his arrest and a raid of his home in Frankfurt, Germany, December 7, 2022. The Federal Prosecutor's Office has conducted raids targeting a terror group known as Reichsburger, which Reuss is accused of heading, for an alleged plot to overthrow the Germany government. / Credit: Boris Roessler/picture alliance/Getty© Provided by CBS News

Current members of Germany's special security services struck in the early hours of Wednesday morning, in what was a potentially dangerous series of raids.

Forces stormed apartments across the country, executing 25 arrest warrants and launching extensive searches.

While only 25 people were detained, the Federal Prosecutor's Office has accused around 50 men and women of forming a terrorist organization with the intent of eliminating the constitutional order of the Federal Republic of Germany and establishing a new state modeled on the German Reich of 1871.

The group stands accused of planning to storm the Reichstag, or parliament building, as part of a wave of attacks aimed at precipitating civil war-like conditions in Germany. It also allegedly planned to attack the national power grid and to depose the federal government and take power by force.

The prosecutor's office said the group had already selected members to fill important ministerial posts in the new regime, from the moment of the "takeover."



A police officer works during a raid in Berlin, Germany, December 7, 2022. Twenty-five suspects were arrested after coordinated raids in 11 federal states, including Thuringia, Hesse and Lower Saxony, the Federal Prosecutor's Office said in a statement. 

/ Credit: Abdulhamid Hosbas/Anadolu Agency/Getty© Provided by CBS News

Investigators have described the operation against the group as unprecedented in Germany: "Beyond all dimensions in terms of scope."

Because a significant number of the group's alleged members are former soldiers of the Germany armed forces, including special forces, it has been treated as a particularly dangerous organization. Investigators had indications before the raids that the suspects were armed with a variety of weapons, some of which were legally owned.

Given the security concerns, in addition to task forces from the Federal Police's antiterrorism unit GSG 9, officers from several special forces (SEK) of the German states were also deployed to carry out the arrests and ensure security during searches. A total of about 3,000 security forces carried out the raids.

The central figure of the group is Heinrich Reuss, who calls himself Prince Heinrich XIII. He's the scion of a long-established but minor German royal household from what is now Thuringia, in eastern Germany. The 71-year-old has publicly advocated his "Reichsbürger" theses for several years, which suggests the modern German state is illegitimate and that the old royal lineage from the 19th century must be restored to power.



During a raid against the so-called© Provided by CBS News

In 2019, for example, he declared at a forum in Switzerland that the Federal Republic was not a sovereign state, but still controlled by the Western allies from World War II. In another video still circulating online, he refers to the German state and the country's judiciary branch as "companies."

Reuss was earmarked by the Reichsbürger terror group targeted in Wednesday's raids to become the new state regent after its takeover of the country, investigators said. Reuss works as an independent financial adviser in Frankfurt and owns a hunting lodge in Thuringia. Members of the group are reported to have met at the lodge several times over the course of this year.

A kind of "shadow cabinet" is said to have been formed, with Reuss at the helm.

Particularly explosive was the allegation that the group intended to install as the head of a new national justice department the former AfD member of the Bundestag, Birgit Malsack-Winkemann. She has worked as a judge in Berlin since leaving the Bundestag last year. Previous attempts by the Berlin regional senate to have her removed as a judge, due to anti-democratic and other political statements she has made from the bench, have failed.



One of the leading suspects swept up in the raids was Rüdiger von P., who commanded a German paratrooper battalion in the early 1990s until it was absorbed into the then-newly-founded national commando special forces (KSK). He was dismissed from the Bundeswehr at the time after being found to have stolen weapons from the military's stocks.

Some suspected members of the group had already made public appearances as agitators at recent protests against Germany's anti-coronavirus measures. For example, a former military colonel and member of the special forces named by prosecutors as Maximilian E. publicly advocated at one protest to send Germany's special forces to "clean up the mess" in the national government.

Due to the large number of suspects and the large number of arrest warrants executed on Wednesday, the raids will pose a considerable logistical challenge for the judiciary and law enforcement authorities involved. All those arrested must now be brought before an investigating judge by the end of the following day, Thursday, under German law. It will be up to those judges to decide whether the individuals can be held in pre-trial detention.

Germany foils bizarre coup plot by far-right group

Story by AFP • Yesterday 

A prince, an ex-MP and former soldiers were arrested Wednesday in raids led by the German police against members of a far-right "terror group" that allegedly planned to attack parliament and overthrow the government.


German police staged nationwide raids and arrested 25 people suspected of belonging to a far-right 'terror cell'© Fricke


Germany busts far-right cell plotting to 'overthrow state'© Provided by AFP

The group had organised a "council" to take charge after the putsch, as well as a "military arm that would build a new German army", chief federal prosecutor Peter Frank told journalists.

"Some members of the terrorist organisation also considered using force to enter the German Bundestag (parliament)," Frank said.

He later told the ARD broadcaster that the group's preparations were "already at an advanced stage", though no concrete date had been set.

"We are sure that it would have come to a strike," he said.

President Frank-Walter Steinmeier told public radio MDR he was "deeply concerned" by the alleged plot, describing it as a "new level".

Around 3,000 officers including elite anti-terror units took part in the early morning raids searching more than 130 properties, in what German media described as one of the country's largest-ever police actions against extremists.

The raids targeted alleged members of the "Citizens of the Reich" (Reichsbuerger) movement, federal prosecutors said in a statement.

Prosecutors in Karlsruhe, southern Germany, said they had arrested 25 people, including one in Austria and another in Italy, and identified a further 27 people as suspected members or supporters of the network.



Germany considers far-right terrorism the biggest threat to its security following a spate of attacks in recent years© Tobias SCHWARZ

- Prince and politician -

Those arrested are accused of having formed a group that "had set itself the goal of overcoming the existing state order in Germany and replacing it with their own kind of state", they said.

"The accused are united by a deep rejection of state institutions and the free, democratic basic order of the Federal Republic of Germany," they said.

The suspects were aware that their plan "could only be realised by using military means and violence against state representatives", prosecutors said.

They allegedly planned to appoint one of the arrested suspects, identified by local media as aristocrat and businessman Prince Heinrich XIII Reuss, as Germany's new leader after the coup.

Heinrich XIII had already sought to make contact with Russian officials to discuss Germany's "new state order" after the coup, prosecutors said.

There was however "no indication that the contact persons responded positively to his request", they said.

A Russian woman named only as Vitalia B., who was among those arrested on Wednesday, is suspected of having facilitated those contacts, prosecutors added.

Birgit Malsack-Winkemann, a former member of parliament for the far-right AfD party and Berlin judge, was also arrested.

The ex-MP had been tapped by the group to take over as justice minister after the planned coup, chief prosecutor Frank said.

- 'Into the abyss' -

Other suspected members include current and former members of the German army in the "low single digits", a spokesman for the defence ministry said at a regular press conference.

One of those arrested was an active soldier in the KSK special forces, who worked in a "support" role, the spokesman said.

"A former officer of the special units of the German army" was likewise held near Perugia, Italy, the local police said in a statement.

The Reichsbuerger movement includes far-right extremists, conspiracy theorists and gun enthusiasts who reject the legitimacy of the modern German republic.

Its followers generally believe in the continued existence of the pre-World War I German Reich, or empire, under a monarchy and several groups have declared their own states.

Long dismissed as malcontents and oddballs, the Reichsbuerger have become increasingly radicalised in recent years and are seen as a growing security threat.

The investigation gave "a look into the abyss" of far-right terror from the movement, Interior Minister Nancy Faeser said in a statement.

According to prosecutors, the terror cell suspects believe in Reichsbuerger and QAnon conspiracy theories and are "strongly convinced" that Germany is run by a "deep state" that needs to be toppled.

As part of the preparations for the coup, members of the alleged terror cell acquired weapons, organised shooting practice and tried to recruit new followers, particularly among the military and police, according to prosecutors.

Germany considers far-right terrorism the biggest threat to its security following a spate of attacks in recent years.

In April, police foiled a plot by a far-right group to kidnap the health minister.

Far-right prince at centre of German coup plot


By AFP
Published December 8, 2022

A German prince was arrested, along with other alleged plotters, in a massive operation by German security forces Wednesday - Copyright AFP/File Ed JONES

Sam REEVES

A German prince, known for his desire to revive the country’s monarchy and rejected by his own family as a “mad old man”, has emerged as a central figure in an alleged coup plot.

Prince Heinrich XIII Reuss, descendant of a noble family with a history dating back over eight centuries, was supposed to be installed as Germany’s new leader if the bizarre plan had succeeded, officials say.

But he was arrested, along with other alleged plotters including a right-wing ex-MP and former soldiers, in a massive nationwide operation by thousands of German security forces Wednesday.

The group are alleged members of the “Citizens of the Reich” (“Reichsbuerger”), an ideological movement grouping far-right extremists and conspiracy enthusiasts.

The suspected seditionists are said to have planned to storm parliament and had sketched out details of their new government.

Heinrich XIII, a real estate businessman, was arrested at his residence in Frankfurt and led out by police wearing masks.

At the same time, his castle in Bad Lobenstein in the eastern region of Thuringia — where his aristocratic family had once ruled over a swathe of land — was also searched.

It was at this grand residence where the prince allegedly plotted with others to overthrow the government.

The 71-year-old had made little attempt to hide his extreme views, which chimed with the “Reichsbuerger” movement’s belief in the continued existence of the pre-World War I German Reich, or empire, under a monarchy.

In a rambling speech to a conference in Zurich in 2019, he lamented the abdication of the German emperor in 1918, and insisted the modern-day German republic was illegitimate.

He referred to the “so-called Federal Republic of Germany” and said the country was “being controlled based on administrative structures installed by the Allies after World War II”, who had also written the constitution.

– ‘Black sheep’ –

Other descendants of the noble family have starkly different views however, and have long been trying to distance themselves from him.

The prince is “unfortunately a mad old man,” the family’s current head, Prince Heinrich XIV Reuss, told AFP, adding they had cut ties with him 14 years earlier.

“There is no contact with this black sheep of the family.”

The head of the house, who is based in Austria, said he was “very shocked” to hear of his relative’s alleged involvement in the plan to overthrow the government.

“It is very bad for the family’s reputation, no question,” he added.

On Thursday, federal police chief Holger Muench said the far-right group behind the plan was heavily armed and posed a real threat.

Those arrested included “a dangerous mix of people with irrational convictions, some with a lot of money and others in possession of weapons”, he told the ARD broadcaster.

Weapons including crossbows, rifles and ammunitions were uncovered during Wednesday’s raids, he said. Twenty-five were arrested in the raids while more are under investigation for their links to the group.

Still, views differed as to how serious the plot really was.

A comment piece in the Sueddeutsche Zeitung daily warned it would be naive to dismiss the group as “loonies”.

It noted the plotters included “teachers, doctors, business people… They are people who should actually be pillars of democracy”.

The Frankfurter Allgemeine Zeitung daily, however, cautioned against “getting too carried away”, as nothing suggested the plot would have succeeded.

SEE

https://plawiuk.blogspot.com/2022/12/conspiracies-are-right-wing-dozens.html