Al-Qa'ida 'alive and well' says UN report

The global campaign against terrorism has pushed the al-Qa'ida network underground but has not stopped the flow of money and fresh recruits to carry out new terrorist attacks, according to a United Nations report.

Nearly a year after al-Qa'ida supporters attacked the United States on 11 September, the terrorist network has established cells in at least 40 countries and is well entrenched in Europe, the Middle East, North Africa, and many parts of Asia, according to the report.

It has developed operational links with militant Islamic groups in these areas, gained new recruits, and found new ways to channel millions of dollars and a wide variety of weapons to its supporters, it said.

"Al-Qa'ida, despite the successful inroads made against it over recent months is, by all accounts 'alive and well' and poised to strike again how, when and where it chooses," the report said.

The draft report was prepared by an expert group authorized by the UN Security Council to monitor UN sanctions. Under a council resolution adopted unanimously in January, all nations are required to freeze the finances and impose arms embargoes and travel bans on individuals and groups associated with Osama bin Laden, al-Qaida, and the Taliban — wherever they are in the world.

The draft report, which will be presented next week to the Security Council committee monitoring sanctions, said sanctions and other measures adopted by the international community have had "a marked impact" on al-Qa'ida, causing it to go underground, "to reposition its assets and resources, and to seek new recruits."

But the terrorist network continues "to pose a significant international threat," in part because of its loose worldwide structure, its ability to work with — and within — Islamic groups in militant countries, its backing from extremists inspired by Osama bin Laden, and its continuing financial and logistical, it said.

Despite initial successes after 11 September in locating and freezing some $112 million in assets belonging to al-Qaida and its associates, the report said only about $10m has been frozen since January.

The USTreasury Department countered that the amount of money seized was "the narrowest measure of success" and what counts is destroying the financial infrastructure of terrorism which the United States and other countries are trying to do.

"We are pleased with the success of the terrorist financing efforts," the Treasury said in a statement.

UN experts said al-Qa'ida is continuing to receive financial support from bin Laden's personal inheritance and investments, from its own members and supporters, and from contributions from charitable organizations.

Estimates of the value of the portfolio managed on behalf of bin Laden and al-Qa'ida by unidentified intermediaries range from $30m-$300m, including investments in Mauritius, Singapore, Malaysia, the Philippines and Panana, the report said. But it provided no sources or details.

"Private donations to Al-Qa'ida from wealthy supporters, estimated at up to $16m per year, are believed to also continue, largely unabated. Al-Qaida also is believed to extort money sometimes using threats to businesses or individuals," it said.

"The funds collected and disbursed by a number of Islamic based charities is proving particularly difficult for governments to monitor and regulate," the report said, calling on states to exercise greater surveillance over the operation of charities.