:00:07. > :00:16.Self funded and generating $40 million a month, why the finances of
:00:17. > :00:19.ISIS make it such a powerful en After the death of James Foley, the
:00:20. > :00:31.rights and wrongs of paying a ransom. We talk to a host age negoti
:00:32. > :00:35.or. The Yazidi Swire who escaped ISIS bullets and the pit he was
:00:36. > :00:42.buried in but found his entire village had been massacred. And why
:00:43. > :00:51.would a football manager in this day and age have to say this? I am no
:00:52. > :01:03.racist. I am no sexist. I'm no home ophobe and no anti-Semitic. Good
:01:04. > :01:06.evening. ISIS terror tactics are well known. Their strategies brutal
:01:07. > :01:09.and publicity seeking. What is less understood is how this terrorist
:01:10. > :01:13.group grew into a working business virtually the size of a small state.
:01:14. > :01:16.They have a glossy annual report, a business plan, and generate a
:01:17. > :01:20.revenue of - conservatively - $40 million a month. Their money comes
:01:21. > :01:23.from oil and also from extortion and kidnap ransom. But what makes the
:01:24. > :01:26.group so terrifying is how contained they have become, insulated from
:01:27. > :01:30.sanctions as they are no longer dependent on foreign funds or
:01:31. > :01:33.governments. Our economics correspondent, Duncan Weldon, looks
:01:34. > :01:35.at where its money comes from and how the self
:01:36. > :01:43.at where its money comes from and it such a powerful enemy.
:01:44. > :01:47.at where its money comes from and State is an unusually well organised
:01:48. > :01:53.terrorist group. Everything from me till louse record keeping to slickly
:01:54. > :01:57.produced videos suggest it. Floss better illustration of the their
:01:58. > :02:03.approach than the annual publication of a report detailing their
:02:04. > :02:07.activities. Complete with graphics detailing their success on things
:02:08. > :02:13.like suicide bombings and kidnappings. They are the most well
:02:14. > :02:16.funded group of their ilk we've ever seen. Like most terror groups
:02:17. > :02:24.Islamic State first relied on donors. Since 2011 Islamic State's
:02:25. > :02:28.fighting in the Syrian civil war reportedly received donations from
:02:29. > :02:32.Saudi Arabia, Qatar and Kuwait. Much of this cash apparent ly flowed
:02:33. > :02:37.through Kuwait. One of the traditional ways the Governments
:02:38. > :02:40.seek to combat organisations like IS is through cutting off the flow of
:02:41. > :02:44.finance, identifying and sanctioning is through cutting off the flow of
:02:45. > :02:47.donors and related firms. But IS is is through cutting off the flow of
:02:48. > :02:48.no long er dependent is through cutting off the flow of
:02:49. > :02:55.funds. It raises is through cutting off the flow of
:02:56. > :02:55.firmly rooted into the local is through cutting off the flow of
:02:56. > :03:01.regional economies of is through cutting off the flow of
:03:02. > :03:06.Iraq. IS's biggest source of revenue is isle. There's been a large black
:03:07. > :03:10.market in oil in the Middle East in decades. It was used by Saddam
:03:11. > :03:14.Hussein in Iraq to get round sanction,s. And it has been
:03:15. > :03:18.exploited by the complots IS has controlled several fields in Syria
:03:19. > :03:22.since 2012 and this year added four small fields in Iraq. Some of this
:03:23. > :03:29.oil is transported to Turkey, Jordan and Iran and sold on the black
:03:30. > :03:33.market for $50 to $60 a barrel. Some of it is transported to refineries
:03:34. > :03:39.in northern Syria. As these pictures show, this is dangerous work. The
:03:40. > :03:43.refined fuel is used in IS's only vehicles and sold in petrol stations
:03:44. > :03:49.in areas under their control. Taken together, crude and refine. Oil
:03:50. > :03:54.sales are currently worth around $1 million to ?3 million per day to
:03:55. > :03:58.Islamic State. There's more to Islamic State's revenue an oil. It
:03:59. > :04:03.extorts cash from local businesses in areas it controls, behaving like
:04:04. > :04:05.a Mafia protection racket. Before the capture of Mosul extortion
:04:06. > :04:10.wassest mated the capture of Mosul extortion
:04:11. > :04:13.million a month. It has almost certainly increased significantly
:04:14. > :04:19.since then. There have been reports that IS is selling captured women
:04:20. > :04:28.and girls to people traffickers. The sale of hostages is another means of
:04:29. > :04:31.cash. It asked for goods 250 million for the release of James Foley. The
:04:32. > :04:34.average price paid for the release of James Foley. The
:04:35. > :04:41.to 5 million. What are they spending all of this cash on? IS's revenues
:04:42. > :04:45.are in the region of at least $40 million a month and possibly much
:04:46. > :04:50.higher. Manchester of it goes on fighting their enemies, but not all
:04:51. > :04:56.of it. In areas they control, IS is subsidising food and water,
:04:57. > :04:59.providing basic public services and dolling out charity. This attempt to
:05:00. > :05:04.win over hearts and minds is a crucial part of their strategy. They
:05:05. > :05:09.are by far and away the best funded group of their ilk we've seen. With
:05:10. > :05:13.the funds they've got they are in a cycle that allows them to attract
:05:14. > :05:16.fighters, to buy weapons, to take more territory and more financially
:05:17. > :05:20.attractive assets. That's a psyche hall the West needs to try and
:05:21. > :05:25.break. Through conquest, extortion and oil trading IS have managed to
:05:26. > :05:31.make themselves financially self sufficient. It is increasingly
:05:32. > :05:39.looking less like a financed terror group and more Plaid Cymru a poor
:05:40. > :05:43.state. The brother of murdered hostage James Foley said today he
:05:44. > :05:52.believed the US Government could have done more to help his brother.
:05:53. > :06:00.His ransom, the unimaginable sum of $132 million, never seemed remotely
:06:01. > :06:08.realistic. I spoke to a hostage negotiator. He goes by the name of
:06:09. > :06:14.Jan. He wishes to remain anonymous. We work for anybody who has been
:06:15. > :06:19.kidnap ed. Whether that's a family, an individual or a company, a
:06:20. > :06:26.corporation, an aid agency for instance as well. How often is a
:06:27. > :06:32.ransom part of the ultimate negotiation? Quite often. It depends
:06:33. > :06:38.on the country and the area and the profile of the victim and the
:06:39. > :06:43.kidnappers. What we would always do is do our utmost not to pay a
:06:44. > :06:47.ransom, if there is another way of getting somebody released by
:06:48. > :06:53.providing some sort of concession for instance, which is not money. We
:06:54. > :07:00.would have a go at that. Quite often with aid agencies in south Asia
:07:01. > :07:04.particularly, then the aid agencies are sufficiently well liked by the
:07:05. > :07:11.local communities that if one of them is kidnapped, they can use that
:07:12. > :07:16.community leverage in order to pressure the kidnappers or persuade
:07:17. > :07:20.them to release them for no money. Ostensibly there's a real
:07:21. > :07:25.discrepancy between the way, say, British and US Governments deal with
:07:26. > :07:29.ransoms with hostages and the way the French Government deals with
:07:30. > :07:34.them. The French is more likely to pay money. Is that a good thing?
:07:35. > :07:38.Governments, particularly the Europeans, have got a very bad
:07:39. > :07:48.record now for paying far too much and far too quickly and feeding the
:07:49. > :07:53.kidnappers, the terrorists, with money. Governments are poor
:07:54. > :07:59.generally at countering kid naps, because they are seen by the
:08:00. > :08:05.kidnappers to be a bottomless pit of money. And they are also seen as
:08:06. > :08:11.being very subject to political, domestic political precious, so they
:08:12. > :08:14.pay very fast and quickly, which is exactly what kidnappers like. But
:08:15. > :08:18.essentially you're saying if the Government says we are not paying,
:08:19. > :08:23.but here's a negotiator who will work it out for you, you are still
:08:24. > :08:28.paying the ransom. You are still increasing the likelihood that more
:08:29. > :08:32.hostages will be taken. I think it is right that you try to save
:08:33. > :08:38.people's lives, innocent people who've been caught up with let's say
:08:39. > :08:44.aid agency workers on journalists who just somebody who is travelling
:08:45. > :08:48.and is kidnapped. The UK and US Governments tell us they don't pay
:08:49. > :08:53.ransoms. Is the that true? I think it is true that the US and the UK
:08:54. > :08:57.don't. I think the Europeans or some European governments have been for
:08:58. > :09:04.fairly sure. But I think what the US and UK are doing now is trying to
:09:05. > :09:08.stop people, families and corporate or companies from paying rans Oms.
:09:09. > :09:15.They are trying to ban the payment of rans Oms to terrorists. I think
:09:16. > :09:20.that is wrong. That is wrong to take out of the hands of people their own
:09:21. > :09:25.way to get their loved ones back. You can see why they are doing it,
:09:26. > :09:30.because they want to cut down on the incidence of kidnap-taking. You can
:09:31. > :09:33.and I sympathise with that entirely but I think there are more direct
:09:34. > :09:39.ways of bringing security to these areas. Again I just think it is
:09:40. > :09:46.wrong. I think legally it is very dubious to be trying to ban people
:09:47. > :09:58.from trying to save their loved ones. Jan, thank you. Joining us now
:09:59. > :10:03.is a research fellow from RUSI, the think-tank. He said it is legally
:10:04. > :10:07.dodgy ground for the Government to stop people. His explanation is
:10:08. > :10:11.dubious. He says bring security instead. That's effectively a call
:10:12. > :10:18.for world peace. We would all like to see Iraq, Syria stabilise, but
:10:19. > :10:24.that isn't going to happen. His points about not incentivising
:10:25. > :10:31.further kidnappings or funding terrorist groups, which they can use
:10:32. > :10:35.to grow. Whoever pays the ranges, pays the ransom, it makes no
:10:36. > :10:40.difference to the long-term effect of the market for hostages. You
:10:41. > :10:45.can't say if no ransom were ever paid there would be no host age
:10:46. > :10:50.taking. No, if you go back to Al-Qaeda in Iraq, they murdered many
:10:51. > :10:53.hostages brutally for pure propaganda purposes alone, so we can
:10:54. > :10:59.concede there'll certainly be hostage taking for political
:11:00. > :11:04.reasons, propaganda purposes and blew bloodshed, which is barbaric
:11:05. > :11:09.group like ISIS desires. We are not talking a bit of spare change or
:11:10. > :11:14.bonus money, but the core funding for Al-Qaeda over recent years and a
:11:15. > :11:17.significant source of the growth of this plague, the Islamic State. And
:11:18. > :11:22.yet you could say, and you could never quantify a human life in terms
:11:23. > :11:29.of money or money paid, but you could say that the response to the
:11:30. > :11:33.killing of James Foley may now be war. May now be military
:11:34. > :11:37.intervention, maybe a hardening of public opinion which is clearly
:11:38. > :11:42.going to be way more costly than paying for his release. That's an
:11:43. > :11:46.interesting argument but we know the structural conditions in Iraq and
:11:47. > :11:50.Syria point in that direction anyway. The growth of Islamic State,
:11:51. > :11:54.there are over 500 British fighters with the Islamic State, all of this
:11:55. > :12:00.means a form of confrontation with the ITV, military or otherwise, was
:12:01. > :12:04.coming. So you are saying the beheading of this hostage had very
:12:05. > :12:09.little bearing on American policy now? I think American policy has
:12:10. > :12:17.been gearing up slowly. I think it would have made a difference to
:12:18. > :12:24.Chuck Hagel's sweeping statement about ISIS being a luge threat yet,
:12:25. > :12:29.but it is inevitable they will expand air strikes. Before Foley. I
:12:30. > :12:31.think after Foley that's how it is. Clearly this is something the
:12:32. > :12:36.Americans haven't stated is explicitly, but we know our Foreign
:12:37. > :12:42.Secretary said, we will not go into business with Assad. Air strikes on
:12:43. > :12:49.Syria are presumably going to do Assad's work for him? Assad will be
:12:50. > :12:53.the beneficiary but so will those fighting Assad or the Islamic State.
:12:54. > :12:56.The Free Syrian Army or whatever we wish to call them, they've been
:12:57. > :13:00.under the Islamic State cosh. They will benefit and the question is not
:13:01. > :13:05.just does Assad benefit or not, parents by being seen to overtly
:13:06. > :13:09.work with Assad, what effect does that have on the tens of millions of
:13:10. > :13:13.disenfranchised Sunnis who support we need to ultimately defeat the
:13:14. > :13:18.Islamic State? That's a bigger issue. Not does Assad benefit but is
:13:19. > :13:24.this going to help us peel Sunnis away from the Islamic State? I think
:13:25. > :13:31.overt active co-operation with Assad doesn't fulfil that objective. Thank
:13:32. > :13:34.you. What about those who survive ISIS but find themselves narrators
:13:35. > :13:40.of the terrible events they've witnessed with. One Yazidi man from
:13:41. > :13:45.northern Iraq tells Newsnight of the day his vic near Sinjar was
:13:46. > :13:51.surrounded by ISIS militants. They rounded up the men, shot them and
:13:52. > :13:56.buried them en masse. Rafid Said Amu fled but a thousand of his fellow
:13:57. > :14:03.villagers disappeared. He told his story. Hospitals in northern Iraq
:14:04. > :14:06.are struggling to cope with the influx of both wounded
:14:07. > :14:09.are struggling to cope with the military personnel, as Kurdish
:14:10. > :14:14.are struggling to cope with the Iraqi soldiers tried to push back
:14:15. > :14:17.against the IS offensive here. There are daily skirmishes. We are in the
:14:18. > :14:21.largest hospital in Dahuk, where many of the wounded are brought.
:14:22. > :14:22.This is the emergency room. I've seen a number
:14:23. > :14:28.This is the emergency room. I've being treated. This is also where
:14:29. > :14:32.they brought victims of a recent massacre.
:14:33. > :14:38.they brought victims of a recent five times during the massacre of
:14:39. > :14:42.non-Muslims by ISIS militants in a village near Sinjar. At least 80 men
:14:43. > :14:45.each the minorityies sect were rounded up and shot dead. Women and
:14:46. > :15:47.children were abducted. When they were surrounding you in
:15:48. > :17:21.your village, what was happening, what were they telling you?
:17:22. > :18:11.He told me he walked for about 12 hours, finally reaching Mount Sinjar
:18:12. > :18:14.in the dead of night. He says between 40 and 50 of the villagers
:18:15. > :18:17.rounded up with him died in the massacre. Where are the rest of the
:18:18. > :18:31.family? Do you know what happened to your
:18:32. > :18:39.wife and your children? Yalda Hakim speaking to the sole
:18:40. > :19:05.survivor. To give Malky Mackay credit,
:19:06. > :19:08.his text messages suggest he was indiscriminate
:19:09. > :19:10.in his discrimination. His racist, sexist, homophobic,
:19:11. > :19:12.anti-Semitic comments suggest he Today came a full-scale apology
:19:13. > :19:17.and a reminder that anyone who had their personal texts scrutinised
:19:18. > :19:19.would probably be in But it was the phrase that followed
:19:20. > :19:23.the texts, a plea to dismiss them as friendly banter, which some
:19:24. > :19:31.found most offensive of all. A new term has been added to the
:19:32. > :19:42.offensive language Mexican and that word may just be banter -- the
:19:43. > :19:49.offensive language lexicon. The text stream was between Malky Mackay and
:19:50. > :19:52.Iain Moody. Markey Mackay apparently covers the full gamut of offence,
:19:53. > :20:11.racist, anti-Semitic and sexist. It was something that was
:20:12. > :20:16.unacceptable, but as far as I am concerned, I have been in a
:20:17. > :20:24.multicultural football environment for 20 years. I love British
:20:25. > :20:32.football. I am no racist, I am no sexist, I am no homophobe, I am no
:20:33. > :20:38.anti-Semitic. The text messages have been condemned but a lone figure let
:20:39. > :20:44.to his defence. Show me someone who has never made a mistake and I will
:20:45. > :20:48.show you a liar. He has not murdered anyone, he is not a rapist, he is
:20:49. > :20:52.not a paedophile. He has made a mistake, a big mistake, but it
:20:53. > :21:00.should not finish his football career. The LMA has apologised for
:21:01. > :21:03.its wording and accepted it is beyond argument that it was
:21:04. > :21:08.discriminatory, a window has been opened onto the part of footballing
:21:09. > :21:14.world that they have tried so hard to shut. Have things changed or has
:21:15. > :21:18.the beautiful game managed to bury its beautiful side?
:21:19. > :21:20.I am joined now by former footballer turned pundit,
:21:21. > :21:26.Mark Bright, and the award-winning sports writer, Matthew Syed. Malky
:21:27. > :21:36.When you have a manager saying, I am not anti-Semitic, I am not a
:21:37. > :21:43.homophobe, it is a strange state of affairs. This is about far more than
:21:44. > :21:49.Markey Mackay and Iain Moody. There are no black managers. No women
:21:50. > :21:54.managers. No women working in youth team football. No openly gay
:21:55. > :21:58.footballers. That is what the situation is in football. It hints
:21:59. > :22:03.at a culture going way beyond one man, these two men. That is the
:22:04. > :22:11.issue football has to address. It is deeper and wider. You were pretty
:22:12. > :22:16.shocked. We talked on the phone. How wide do you think this goes?
:22:17. > :22:23.Everyone in football condemns what they have said. No one can put up a
:22:24. > :22:28.case with them. I have been in Iain Moody's company since he joined the
:22:29. > :22:32.club, in the boardroom, travelling, he has never said anything untoward
:22:33. > :22:38.to me. There have always been rumours and when it came out, the
:22:39. > :22:42.content of the texts, I was shocked. I did not think in 2014 anyone is
:22:43. > :22:47.going to write it down never mind think it. You said write it down,
:22:48. > :22:50.the defence Harry Redknapp tried to put up was
:22:51. > :22:53.the defence Harry Redknapp tried to away looking good if their text
:22:54. > :22:57.messages were scrutinised. Any of us. I don't know. Would you be
:22:58. > :23:02.comfortable someone going us. I don't know. Would you be
:23:03. > :23:08.phone? Does he have a point? Depends what it says. Has
:23:09. > :23:12.phone? Does he have a point? Depends their friends about their boss? That
:23:13. > :23:20.goes on. But that is discrimination. It is wrong. Every box ticked. And
:23:21. > :23:27.yet every time you go and watch a game, there are adverts and the
:23:28. > :23:36.thing about combating racism and homophobia, is that just the surface
:23:37. > :23:41.question might the reality is a disaster. The spin is good. Better
:23:42. > :23:49.than it was. -- is that just the surface? Football lags behind. Why?
:23:50. > :23:53.If you work at a big corporate institution, you are told by the
:23:54. > :24:01.very very strenuous page our department that it is unacceptable
:24:02. > :24:07.to use racist, sexist, homophobic terminology as banter. In football
:24:08. > :24:13.clubs, on the training pitch, homophobic epithets used as terms of
:24:14. > :24:18.abuse. It is just a group of young guys, a bit of banter. Let me
:24:19. > :24:23.finish, if I made? This is a place of work. If there is a gay person
:24:24. > :24:27.not out of the closet... They are not going to say, it is out of
:24:28. > :24:32.order. They might not want to be identified. Think of the attritional
:24:33. > :24:36.affected that will have. They do not understand that this is not just
:24:37. > :24:41.banter, it is not just a group of guys having a kick around, it is a
:24:42. > :24:48.place of work. They need to have the same rules as big companies. I have
:24:49. > :24:53.heard players told the manager to F off on the training ground. Anywhere
:24:54. > :24:58.else, you lose your job. In football, you don't. You can't down
:24:59. > :25:04.on the manager comes down and you say sorry and move on. -- you calm
:25:05. > :25:10.down. What is your point, it is not going to change? It is not banter.
:25:11. > :25:13.It is an exchange on the pitch against each other and the manager
:25:14. > :25:20.and the player, when you are in training... I mean, we were talking
:25:21. > :25:26.before and I said, Jeremy Clarkson has come out with a couple of
:25:27. > :25:29.things, close to the knuckle, he is still employed. You talk about
:25:30. > :25:36.football having a problem... Really interesting. Thank you very much.
:25:37. > :25:38.The Budleigh is the perky and hold of butterflies who seek out
:25:39. > :25:42.The Budleigh is the perky and hold nectar but to government officials
:25:43. > :25:47.and Network Rail it is a scourge smothering native plants and
:25:48. > :25:53.damaging infrastructure with its restless pen draws. It has been
:25:54. > :25:57.branded a non-native invader. In the late summer zenith, it is
:25:58. > :26:11.unbelievably common. Here is Steven Smith. What could be more restful?
:26:12. > :26:16.Yet we need to be on our guard against a threat on our very
:26:17. > :26:21.doorstep. On the white Cliffs of Dover themselves. They comes in the
:26:22. > :26:30.deceptively innocuous guys of a foreign invader. The buddleia. Is it
:26:31. > :26:36.a case of us and then with the buddleia? You have to admire these
:26:37. > :26:41.plants, but they are causing a lot of damage to wildlife. I think it is
:26:42. > :26:49.wonderful and vibrant and colourful. Let buddleias rule. You may have
:26:50. > :26:55.admired it from a railway carriage. In fact, you can hardly have missed
:26:56. > :27:05.it. It flourishes where other plants shrivel. Dry soil, cracks in mortar.
:27:06. > :27:10.It is a supreme opportunist, on the front, park rangers like this man
:27:11. > :27:16.keeping watch under the famous chalky sentinels, the home guard. It
:27:17. > :27:22.is a nature reserve that is protected for its very rare wild
:27:23. > :27:26.flowers and particularly its very rare assemblage of insects. Hundreds
:27:27. > :27:30.of insects that have been recorded here which are often not recorded
:27:31. > :27:38.anywhere else in Britain. It is very dense. You could not force your way
:27:39. > :27:41.through. This is what buddleia does. The shade kills off everything
:27:42. > :27:47.growing underneath. All of the wild flowers, grass, the insects and
:27:48. > :27:55.butterflies depend on them and they are not there any more. This is part
:27:56. > :28:02.of the buddleia? The Jan has eliminated almost everything. -- the
:28:03. > :28:09.buddleia. At garden centres like this one, customers are wild for
:28:10. > :28:12.buddleia though it can smother some plants. Paradoxically it is also
:28:13. > :28:20.known as a haunt of mature butterflies. We are up 20% on year
:28:21. > :28:26.to date. People are passionate about wildlife because of the decline of
:28:27. > :28:31.butterflies and ladybirds, they want to encourage these into their
:28:32. > :28:36.gardens again. This is the perfect thing. It flowers all summer until
:28:37. > :28:41.autumn and it is really pretty. Whitehall officials describe
:28:42. > :28:49.buddleia as invasive and purge gardeners to deadhead the plants
:28:50. > :28:55.before they can seed -- and they purge gardeners. The garden
:28:56. > :29:01.centre's star employee spruces the place up in honour of gardening
:29:02. > :29:08.royalty. Very nice to see you again. I hope you like the set we have
:29:09. > :29:13.bowled for you. What about these plants, the name of which I have
:29:14. > :29:16.momentarily forgotten, but I know you know what they are and they are
:29:17. > :29:23.running riot all over the country at the moment. Buddleias. When you
:29:24. > :29:33.think of a British garden, you think of buddleias and butterflies, maybe
:29:34. > :29:39.an Edwardian wall space, what harm does the buddleia of suburbia do?
:29:40. > :29:46.Genius! I see a range of gardening accessories. This could be huge. A
:29:47. > :29:50.garden is a melting pot so many different cultures, so many
:29:51. > :29:54.different places. Look how it combines beautifully and that is
:29:55. > :30:02.what this country has always been good at. Towards the end of August,
:30:03. > :30:09.do you have any gardening tips? Should they be deadheading anything?
:30:10. > :30:17.Hydrangeas. Fine when I last checked them out. On a clear day, you can
:30:18. > :30:21.look out to France across The Channel, the source of so many
:30:22. > :30:26.earlier threats to this green and pleasant land. Meanwhile the French
:30:27. > :30:32.can look back at us and see our buddleia. We leave you with a treat.
:30:33. > :30:37.As part of Newsnight's Proms preview, we enter night with the
:30:38. > :30:42.principal cellist with the London Symphony at playing the haunting
:30:43. > :30:48.Linguae Ignis, or Tongues of Fire, by Peter Maxwell Davies. Good night.