REPORTER: GINNY STEIN

The town of Balakot in Pakistan's North-West Frontier province was hardest hit by last year's earthquake. 90% of all buildings were destroyed. This mountain of rubble was once the old city.

TAJ MOHAMMED (Translation): Before the earthquake, it was a city full of life. Driving through here at night, you could see a lot of activity. There were so many lights, like stars in the sky. Looking at the city now, I feel like crying. I can't believe that this is our same old city.

To the people of Balakot, Taj Mohammed is a hero. After the earthquake struck on October 8, killing more than 80,000, he rescued scores of people trapped in the ruins of their homes. A deeply religious man, he's asked that his face not be shown on television.

TAJ MOHAMMED (Translation): When I came out I was scared. I thought that only the three of us survived. I was standing here for a minute when I heard a woman crying in that house. First I said Allah's name. Then with trembling hands I pulled her from the rubble.

But while he's a saviour to many, to others he's tainted by the company he keeps as a loyal member of Jamaat-ud Dawa, a militant religious group accused of waging jihad at home and abroad.

SAMINA AHMED, INTERNATIONAL CRISIS GROUP: What do they preach, to begin with? They are preaching a certain type of militant Islam. Should they be allowed to do that? No, they shouldn't. What do they do? They go beyond preaching militant Islam to training jihadis. They are jihadi organisations. They fight domestic jihads, they fight regional jihads. These are terror organisations for a reason. They resort to the use of force, to forward their political goals. That is the danger. That is the threat.

Prior to the deadly earthquake, the covert training of young militants in the hills around Balakot was one of Pakistan's worst kept secrets. When the earthquake struck, the bearded militants came out of hiding. They were amongst the first to begin work here, digging people out of the rubble and providing food, medicine and shelter to survivors.

MAN IN DISPENSARY: This is Advil, Ecotrin. And Endomycin. This is Panadol.

Up until now, the Jamaat-ud-Dawa has not allowed anyone to film its relief activities. But Dateline was granted exclusive access to film at this camp just days after the organisation was added to the US Government's terror list. The International Crisis Group says that Jamaat-ud-Dawa is one of at least 17 groups involved in relief work here that are considered to have terrorist links. The al-Rasheed Trust is another of the terrorist-listed organisations dispensing medical care and providing shelter. Abu Zargham is Jamaat-ud-Dawa's head of relief work for the Balakot valley. He's also asked for his face to be concealed, citing religious reasons.

ABU ZARGHAM, BALAKOT RELIEF CHIEF (Translation): Jamaat-ud-Dawa actively participated in the relief work. The international media and the whole world praised them. The Government of Pakistan also praised them and congratulated them. If they were not here - I hate to say it, but things happen according to Allah's will - the death toll would have been much higher.

Jamaat-ud-Dawa was not always known by this name. It was formerly called Lashkar-e-Taiba - the Army of the Pure and Righteous - a hardline jihadi group with international connections, which Pakistan declared to be a terrorist organisation in 2002. Canberra followed suit a year later. Lashkar-e-Taiba is widely known for its fundraising and recruitment of Islamic militants who cross into India to fight in the disputed region of Kashmir. Samina Ahmed, a political analyst with the International Crisis Group, says Jamaat-ud-Dawa has the same leader, the same headquarters and the same philosophy as Lashkar-e-Taiba.

SAMINA AHMED: They haven't even tried to change the organisation, all they have done is changed the name.

REPORTER: But what is its position now - because it has reformed, it has renamed itself? Does the US consider it to be one and the same organisation?

SAMINA AHMED: Absolutely. On 28 April, the US put Jamaat-ud-Dawa on its terror list on that ground, that it is just a renamed Lashkar-e-Taiba.

Even the founder of Lashkar-e-Taiba, Hafiz Mohammed Saeed, has publicly admitted that Jamaat-ud-Dawa is the same organisation and he continues to lead it.

JOURNALIST: Do you accept that Jamaat-ud Dawa is a name change of Laskhar-e-Taiba?

SENATOR MUHAMMAD ALI DURRANI, INFORMATION MINISTER: This is just a statement. There is no name change, we have changed...they have changed. There was no such evidence, there is no such evidence of their involvement in any such If there is any evidence about anybody, that he or she, or anybody is involved in any such activity which is not in line with the law and the constitution of Pakistan, we will go straight and we'll take action, and the government has taken action.

Almost eight months after the earthquake these charitable hospitals based in demountable buildings continue to provide free health care across the earthquake zone. The International Crisis Group says that support for the jihadis has never been strong here but by allowing groups like Jamaat-ud-Dawa to operate in the open, Pakistan is helping Islamic radicals to raise their profile with the local community.

BACHT NAWAZ SCHOOLTEACHER (Translation): Actually it should have been done in the month of November and now I am doing this work.

Bacht Nawaz is a schoolteacher who lost everything when the earthquake struck. His wife and twin babies were lucky to survive.

BACHT NAWAZ: My wife and our two twins, two twins were in her lap and she was sitting on the chair, she was playing with them. At the moment the earthquake occurred, the roof of this house, just came up to two feet. She just lay down on the ground, along with the two twins and she crawled from that side and got outside of the house. She was very lucky. She was very lucky. The two twins are playing there.

He owes his temporary home to Jamaat-ud-Dawa.

BACHT NAWAZ (Translation): The first people who came to help, they were the people from Jamaat-ud-Dawa. And they came to recover injured peoples to the hospitals on their backs. And they gave us the shelters also. They have been providing us food for near about a complete whole month as we...lost all this food, etc.

Bacht Nawaz is under no illusion about the role that Jamaat-ud-Dawa and other militant religious groups play in the long-running conflict with India over ownership of Kashmir.

REPORTER: The American Government says they should be banned? And that they say that they're… What do you say about that?

BACHT NAWAZ: Ah, I should say that these people - about Jamaat-ud-Dawa, the people who have been working for us - they are so polite, they are so humble, they are so honest, they are so nice, that it will be injustice if the America asks for the ban on them, Jamaat-ud-Dawa. They are very humble, they don't harm the people, who are innocent people. If they are fighting for the freedom, for the people who are under oppression, then it is OK.

Prior to the earthquake jihadis trained in the hills around here, but thanks to their humanitarian work they are now visible on the streets - and not just by their beards. Militants wear military boots if they can afford them or running shoes if they can't. Jamaat-ud-Dawa is settling in for the long haul.

At this tent school inside one of the Jamaat-ud-Dawa's camps, children are schooled for free.

YOUNG BOY (Translation) I am a soldier of Khalif Farouq-e-Azam and Siddique-e-Akbar. Allah is great. Allah is great. Allah is great. Allah is great. We are the Suns of Truth, the Stars of Greatness. Our hearts are speaking the Koran. We are the awakening destiny of the world.

But this schooling comes at a price.

TEACHER: Die...for...Allah. (Children repeat) Die...for...Allah.

School principal Abdul Hadi is teaching poetry in English.

ABDUL HADI, SCHOOL PRINCIPAL: Do for Allah.

CHILDREN REPEAT: Do for Allah. Do for Allah. Do for Allah. Do for Allah. Do for Allah. Do...for...Allah. Do...for...Allah. Die...for...Allah. Die...for...Allah. Die for Allah. Die for Allah. Give for Allah. Die for Allah. Obey for Allah. Give for Allah. Pray for Allah.

SAMINA AHMED: He's preaching the jihad to the children. I mean, jihad is a concept that's looked at very differently in religious terms. It can be to purify yourself, it can be to seek the true path - which is the larger jihad - and then you have the lesser jihad, which is the use of armed force. These organisations resort to that use of the word 'jihad'. Little children being taught that jihad is what they should be aspiring for is not helpful.

Human rights organisations have accused jihadi groups of taking orphans from the streets and putting them into training camps. And Jamaat-ud-Dawa has openly called for orphans to be given an Islamic education. But Abdul Hadi maintains there are no orphans here, just children being offered a free education.

ABDUL HADI (Translation): We are teaching the syllabus implemented by the government, that includes the English, Urdu and Arabic languages, mathematics, science and we are starting electronics to teach them technical skills.

He does not believe Pakistan will follow the United States' lead in declaring Jamaat-ud-Dawa a terrorist group for one key reason.

ABDUL HADI (Translation): Pakistan is a Muslim country and won't take any action against religious groups.

With confusion on the ground about what is and is not a terrorist group, the government seems to have ensured that it won't have to act. For some, including the head of Pakistan's relief and reconstruction agency, keeping up with the changes is proving difficult.

ALTAF SALEEM, EARTHQUAKE RELIEF AGENCY: My position is that there is no banned group that is working and operating in that area.

REPORTER: You don't see Jamaat-ud-Dawa as a banned group?

ALTAF SALEEM: I am not a judge on who's banned or not banned, you know, there is a list, which says which group is banned and which is not banned. So are they banned I don't sit on that judgment.

Are they banned as far as you know?

ALTAF SALEEM: The list is with the Ministry of Interior. It keeps changing, you know, they add to the list, so, you know, it's the job of the Ministry of Interior. And right now, in fact, in the reconstruction activity, you know, in the relief field, there were many organisations there. Now there are not.

But it's not just the Pakistan Government that has aided militants' relief efforts, the international community has also lent a helping hand. At this camp, UNICEF initially provided the tents for the Jamaat-ud-Dawa to open and run this school. Australia channelled much of its multimillion-dollar aid effort for the Kashmir quake through UNICEF and other UN agencies.

ABDUL HADI (Translation): UNICEF erected tents here earlier but then removed them.

UNICEF country director Omar Abdi is today taking part in the opening of a water pumping station. Omar Abdi says UNICEF follows strict United Nations guidelines when it comes to dealing with banned terrorist organisations. He says UNICEF didn't directly deal with Jamaat-ud-Dawa but worked at arm's length through local agencies.

OMAR ABDI, UNICEF COUNTRY DIRECTOR: We gave to an NGO, a local NGO that is our implementing partner - for example one of them is BEST, another one is National Human Development Commission.

REPORTER: And so they set the school up inside the camp?

OMAR ABDI: They set the school in the camps, yeah.

It's a fine line isn't it?

OMAR ABDI: No, it is not fine line. The camp is…you know, there are so many banners. If you go to any of those camps, you've seen anybody can put banners. But inside the camp there are kids that have lost their schools, that have lost their families. They happen to be there by chance. They didn't select which camp to go, or where to be at the height of the crisis. And they have a right to be educated. So here is another...an NGO, that is providing that education to them. We can not deny to give them supplies to those kids.

Also at the ceremony, General Nadeem Ahmed, the deputy head of Pakistan's earthquake reconstruction agency. He acknowledges that the disaster was fertile ground for many groups trying to win friends and wield influence.

LT-GENERAL NADEEM AHMED, EARTHQUAKE RELIEF AGENCY: You must understand that in times of adversity anybody who stands by you will stand to gain. And I think that kind of a sentiment is present across the board, irrespective of whether this was done by A, B, C or D.

REPORTER: But they have won haven't they? They have got an increased level of support due to the role that they took?

LT-GENERAL NADEEM AHMED: I think it is slightly premature to say that. If they've got, let's say, increased kind of a support from the local population, then how will it manifest - that is what is more important. Will it manifest in some physical way? I have my very, very serious doubts that's going to make a difference.

Despite his prominent position he is vague about the role Jamaat-ud-Dawa plays here.

REPORTER: What's your view of Jamaat-ud-Dawa?

LT-GENERAL NADEEM AHMED: Frankly speaking, I have no idea what they do or what they don't. And I've just, you know, heard about these people that they were into...into, kind of, financing or supporting some kind of a terrorist organisation. Frankly speaking, I have no concrete examples to really support that contention or say otherwise, so probably I will keep my comments to myself.

Pakistan has backed moves by countries such as the United States and Australia to crack down on terrorist groups, but now it is wavering.

REPORTER: Why is Pakistan so reluctant to move on Jamaat-ud-Dawa? They've moved before, in the past.

SENATOR MUHAMMAD ALI DURRANI: What do you think? How? What type of movement do you expect from the Pakistan Government? What action do you expect without any evidence? Can you take any action against your…

The evidence is there, that it is the same leadership, that it's the same headquarters, that it's the same party structure.

SENATOR MUHAMMAD ALI DURRANI: We have not received, we have not received. Headquarters - can a building be executed for anything?

In the Balakot valley, the militants' message is broadcast for all to hear.

PA SYSTEM (Translation): By the grace of Allah we are monitoring and watching. We are watching the tactics of the infidels.

The latest target of their anger - international aid agencies which have come to help.

PA SYSTEM (Translation): Many great people came here. What is their aim? We know what they want to do in Muslim societies and states, what nefarious acts they will commit.

The International Crisis Group says the government's reluctance to take action against the jihadis is based on two factors - such a move would be unpopular, and they also serve a purpose.

SAMINA AHMED: The belief that a proxy war is maybe useful at some stage, maybe not now but in the future, I think is one of the problems here. The Lashkar is an organisation that has been involved in regional jihads, mainly in Kashmir, and that continued link, I think, is a disturbing one.

REPORTER: The government wants them as a ready force for the future - they may just come in handy?

SAMINA AHMED: Well, it's a card that's still there on the table - in other words, has a decision been taken to abandon the card? No, I don't think it has.

Reporter/Camera: Ginny Stein
Editor: Nick O'Brien
Subtitling/Translation: Kausar Jamal
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