Leak ruined spying effort, company says

WASHINGTON — A small private intelligence company that monitors Islamic terrorist groups obtained a new Osama bin Laden video ahead of its official release last month, and midmorning Sept. 7, it notified the Bush administration of its secret acquisition. It gave two senior officials access on the condition that the officials not reveal they had it until the al-Qaida release.

Within 20 minutes, a range of intelligence agencies had begun downloading it from the company’s Web site. By midafternoon, the video and a transcript of its audio track had been leaked from within the Bush administration to cable television news and broadcast worldwide.

The founder of the company, the SITE Intelligence Group, says this premature disclosure tipped al-Qaida to a security breach and destroyed a years-long surveillance operation that the company has used to intercept and pass along secret messages, videos and advance warnings of suicide bombings from the terrorist group’s communications network.

“Techniques that took years to develop are now ineffective and worthless,” said Rita Katz, the firm’s 44-year-old founder, who has garnered wide attention by publicizing statements and videos from extremist chat rooms and Web sites, while attracting controversy over the secrecy of SITE’s methodology.

Her firm provides intelligence about terrorist groups to a wide range of paying clients, including private firms and military and intelligence agencies from the United States and several other countries.

The precise source of the leak remains unknown. Government officials declined to be interviewed about the circumstances on the record, but they did not challenge Katz’s version of events. They also said the incident had no effect on U.S. intelligence-gathering efforts and did not diminish the government’s ability to anticipate attacks.

While acknowledging that SITE had achieved success, the officials said U.S. agencies have their own sophisticated means of watching al-Qaida on the Web. “We have individuals in the right places dealing with all these issues, across all 16 intelligence agencies,” said Ross Feinstein, spokesman for the Office of the Director of National Intelligence.

But privately, some intelligence officials called the incident regrettable, and one official said SITE had been “tremendously helpful” in ferreting out al-Qaida secrets over time.

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