Month: September 2019

Have Retired Jack Ma, Alibaba Steered Away From China Communist Party’s Clutches?

The recent retirement of Jack Ma, former chairman of the Alibaba Group, has set a positive example in China for entrepreneurs to plan succession, ensuring the long-term sustainability of their businesses, according to some analysts.    

But others insist it is still too early to tell if the world’s largest e-commerce giant and its charismatic founder have since steered away from the clutches of the Communist Party, which seemingly views large private companies as a threat.

“They key thing here is not to be too confident about any outcome yet, because we’re simply too early in the cycle here. Jack can still retire and then find himself in a lot of problems later,” said Fraser Howie, co-author of three books on the Chinese financial system, including “Red Capitalism: The Fragile Financial Foundations of China’s Extraordinary Rise.”

On the heels of his official retirement last Tuesday, rife speculation remains that Ma was forced out because he had become “too powerful and influential” and posed a challenge to the authority of China’s top leadership. His tech empire remains under the government’s close scrutiny.

State pressure

It is believed that through his retirement, Ma has avoided being caught up in the Chinese government’s crackdown of big dealmakers in recent years, such as HNA Group’s Wang Jian, Anbang Insurance Group’s Wu Xiaohui, and movie star Fan Bingbing. The latter two “disappeared” for months at one point, according to observers.

FILE – The company sign of Alibaba Group Holding Ltd is seen outside its headquarters in Beijing, China, June 29, 2019.

“He’s getting an airlift before the hammer falls because he clearly would have been the most high-profile scalp within the private sector,” said Howie, adding that Ma’s case also fires a warning shot across the bow of the country’s rich and famous.

Additionally, the fact that some of the country’s tycoons, including Ma, have pledged to hand over control of their businesses to the Communist Party, if needed, epitomizes the lopsided relationship between the state and the private sector under the leadership of President Xi Jinping.

For example, shortly after Ma expressed his intention to step down, Alibaba’s online payment platform Alipay inked an agreement with state-owned UnionPay to cooperate on cardless and barcode payments — a development that led to much speculation that Alipay eventually would be nationalized.

Xi has good reason to view Ma as a threat because the tycoon’s popularity among the public has outshone that of any government officials in China, said Emmy Hu, former executive editor-in-chief of Global E-Businessmen, an online media platform under Alibaba.

“He is one of the most popular and iconic figures in China. Shall democratic and free elections be held, he would have won most votes across China if he’s up to,” Hu said.

Corporate rivalry

Ma is so popular in China that many fraudsters use the catchphrase “you’ll be the next Jack Ma” in an effort to entice victims, she noted.

It’s hard to imagine, therefore, that someone as hardworking, ambitious and successful as Ma would choose to step down at a young age of 55 if it weren’t for political pressure, according to Hu.

FILE – Jack Ma attends Alibaba’s 20th anniversary party at a stadium in Hangzhou, Zhejiang province, China, Sept. 10, 2019.

The journalist added that Ma’s success as a business leader, who has made a great contribution to the economy and provided a livelihood for more than 10 million vendors on Alibaba-owned online shopping site Taobao, made him an obvious target for the Communist Party as it tightened its grip on the private sector.    

“The pressure that the state has exerted on private enterprises is getting more and more evident. That includes policies requiring companies to set up (Communist) party committees or business executives to join the party” to name a few, Hu said.

Apart from the impact of the U.S.-China trade war, the business environment in China has become increasingly hostile toward private companies that state-owned companies see as rivals and hope to edge out to expand market shares, she said.

Succession model

Hu says from a purely business point of view, Ma set a marvelous example in Asia for businessmen to plan succession — an observation with which venture capitalist C.Y. Huang agrees.

“I think he is a role model who has completed a successful succession for peer mainland Chinese companies (to look up to). … In five years, he has groomed his successors … and proved that his company doesn’t necessarily rely on one person,” said Huang, a partner at FCC Partners, a Taipei-based investment bank.     

Daniel Zhang replaced Ma as Alibaba’s chief executive in 2015. Last week, he also took over Ma’s chairmanship.

Huang underscored that all too often, founding patriarchs of Asian companies have refused to hand over the reins, which then creates barriers for businesses to modernize. He pointed out that on a personal level, Ma sets an example for business people to enjoy their lives, and pursue dreams and goals outside of their businesses.

 

Nigeria’s Diesel-dependent Economy Braces for Clean-fuel Rules

Nigeria’s frenetic commercial capital, Lagos, is plunged into darkness several times a day.

Then its generators roar, and the lights flood back on.

Nigeria is one of the world’s largest economies where businesses rely so heavily on diesel-powered generators.

More than 70% of its firms own or share the units, while government data shows generators provide at least 14 gigawatts of power annually, dwarfing the 4 gigawatts supplied on average by the country’s electricity grid.

The machines guzzle cash and spew pollution, but they are reliable in a nation where nearly 80 million people – some 40% of the population – have no access to grid power. Now diesel costs could spike globally, and many businesses are not prepared.

Diesel prices are expected to surge as United Nations rules aimed at cleaning up international shipping come into effect on Jan. 1, with many ships expected to burn distillates instead of dirtier fuel oil.

Slowing economic growth and nascent trade wars could blunt a price spike, and as the shipping industry adapts to the rules, vessels will likely consume less diesel. But in the short term their impact could be profound.

Estimates vary widely, but observers warn that prices could surge by nearly 20%.

A diesel-run generator is on display at Mikano head office in Lagos, Nigeria, Sept. 9, 2019.

Higher costs for operating generators that power the machinery, computer servers and mobile phone towers that run Nigeria’s economy could impair growth in gross domestic product, already limping along at 1.92% at a time inflation is at 11%.

With the population growing at 2.6% each year, people are getting poorer.

“In an environment like this, where discretionary spending is very limited, this could have a big impact,” said Temi Popoola, West Africa chief executive for investment bank Renaissance Capital.

A 20% price rise could shave 0.2% off GDP growth, he said.

Generators Everywhere

Nigeria and German engineering group Siemens agreed in July to nearly triple the country’s “reliable” power supply to 11,000 megawatts by 2023. But previous such plans have failed.

While many Nigerian household and small business generators are powered by price-capped gasoline, the big generators for larger firms, apartment complexes and more substantial homes can only run on diesel.

“Businesses may struggle to survive, or in the best case scenario, would at least downsize,” said Tunde Leye, a Lagos-based analyst with SBM Intelligence. Diesel is the second or third biggest cost for many Nigerian firms, he said.

The oil industry, the Nigerian economy’s biggest driver, would not take a big hit as it does not rely on Nigerian consumers being willing to absorb extra costs it has to pass on.

As fuel producers in their own right, its firms can also recoup costs more easily.

But other heavyweight industries would feel pain. Bank branches rely on generators, with diesel often accounting for 20-30% of banks’ operating expenses, according to Popoola.

Telecommunications companies need them to run their mobile phone towers across the country. Telecoms giant MTN told local media in 2015 that it spends 8 billion naira ($26 million) annually on diesel.

Even bakeries need diesel. At Rehoboth Chops & Confectioneries Ltd., a bakery in the Ogba district of Lagos, giant diesel-powered ovens bake hundreds of loaves of bread. The factory runs 24 hours a day, six-and-a-half days a week.

The lights, mixers and fans that clear the heat are powered by two large diesel generators outside. The ovens run directly on diesel, so they never cut out.

Chief operating officer Abayomi Awe said they use cheaper grid power when they can but rely on generators for around 20 hours per day. Grid power can be down for days.

“It becomes difficult for us to expand if the price of diesel goes up,” he said as bakers scrambled to pull finished loaves from steaming ovens. “It might result in some companies, some bakeries like ours, shutting down.”

In Crisis, An Opportunity

Many businesses are already searching for solutions. The Lagos Chamber of Commerce wants electricity prices revised upwards so the grid can attract investment – a politically risky move domestically.

It has also lobbied the government to remove tariffs and taxes on imported solar panels, which stand at 10%.

Unity Bank and the Bank of Agriculture have already signed deals with solar firm Daystar Power, while mobile phone tower firm IHS Towers is trying to power more sites using solar panels.

Solar power provider Starsight Power Utility Ltd said it is working with 70% of Nigerian banks, but that cheap diesel has been one of the biggest hurdles for the development of solar.

“I think an increase in the diesel price would be most welcome for our business,” chief executive Tony Carr said.

“There is no market penetration because diesel is so cheap.”

($1 = 305.9000 naira)

 

Purdue Pharma to Stay in Business as Bankruptcy Unfolds

A judge cleared the way Tuesday for OxyContin maker Purdue Pharma to stay in business while it pursues bankruptcy protection and settlement of more than 2,600 lawsuits filed against it in a reckoning over the opioid crisis.

At the first court hearing since the Chapter 11 filing late Sunday, Purdue lawyers secured permission for the multibillion-dollar company based in Stamford, Connecticut, to maintain business as usual — paying employees and vendors, supplying pills to distributors, and keeping current on taxes and insurance.

The continued viability of Purdue is a key component of the company’s settlement offer, which could be worth up to $12 billion over time.

Under the proposal, backed by about half the states, the Sackler family, which owns Purdue, would turn the company, its assets and more than $1 billion in cash reserves over to a trust controlled by the very entities suing it.

The Sacklers have also agreed to pay a minimum of $3 billion of their own money to the settlement over seven years, as well as up to $1.5 billion more in proceeds from the planned sale of their non-U.S. pharmaceutical companies.

“This is a highly unusual case in that the debtors have pledged to turn over their business to the claimants,” U.S. Bankruptcy Judge Robert Drain said. “All of the claimants, in essence, have the same interest in maximizing the value of the business and avoiding immediate and irreparable harm.”

Attorney Joe Rice, who represents a group of plaintiffs in the Purdue Pharma bankruptcy, speak to reporters in White Plains, N.Y., Sept. 17, 2019.

Joe Rice, a lawyer for some of the plaintiffs, estimated it could be more than a year before the bankruptcy and settlement are finalized.

“This is not a sprint. We’ve got a little bit of a marathon here,” he said after the three-hour hearing in New York City’s northern suburbs.

Purdue’s bankruptcy filing has effectively frozen all litigation against the company, which its lawyers said has been spending more than $250 million a year on legal and professional fees, but it has not stopped lawsuits against the Sacklers from moving forward.

New York Attorney General Letitia James, who is suing the Sacklers and opposes the proposed settlement, said last week that her office found that members of the family used Swiss and other accounts to transfer $1 billion to themselves.

Purdue lawyer Marshall Huebner said he hoped states that are opposed to the proposed settlement could be persuaded to change their positions.

“In essence, America itself that stands to benefit or lose from the success or failure of these reorganization proceedings,” Huebner said.

None of the Sacklers attended the hearing, but the family name did come up several times as Purdue lawyers declared that they wouldn’t benefit from any steps taken Tuesday to keep the company in business.

As the bankruptcy unfolds, Purdue will continue to pay its approximately 700 employees under preexisting salary structures.

No member of the Sackler family is an employee and none will receive payments, Purdue lawyer Eli Vonnegut said.

Because of commitments Purdue made before the bankruptcy filing, the company will pay sign-on bonuses to five employees and retention bonuses to about 100 employees. The company agreed to hold off on seeking to continue other bonus plans, such as incentive bonuses.

Drain, the judge, also allowed the company to continue covering legal fees for current and former employees, which Vonnegut estimated wouldn’t exceed $1.5 million per month. The company stopped covering legal fees for members of the family on March 1, he said.

“We swear up and down that no payments will go to the Sacklers,” Vonnegut said.

Purdue lawyers argued that the sign-on and retention bonuses were vital to attracting and keeping top talent in a tumultuous time for the company. Covering employee legal fees is important to morale and sends a strong signal that the company backs the people who work for it, the lawyers said.

Bankruptcy trustee Paul Schwartzberg objected, saying the bonuses went “way beyond” normal compensation and were padding the pockets of employees who already make upward of $300,000 a year.

 

ICC Judges Authorize Appeal Against Afghanistan Rejection

International Criminal Court judges said Tuesday that the court’s prosecutor can appeal against the rejection of her request to open an investigation into crimes linked to the long-running conflict in Afghanistan.

In April, a panel of judges rejected the proposed investigation, saying it would not be in the interests of justice because an investigation and prosecution were unlikely to be successful as those targeted — including the United States, Afghan authorities and the Taliban — are not expected to cooperate.

Seeking leave to appeal, Prosecutor Fatou Bensouda said that reasoning ran contrary to the court’s goal of prosecuting grave crimes when national authorities are unwilling or unable to do so.

Bensouda must now file a detailed appeal that will be considered by judges, a process likely to take months.

FILE – Public Prosecutor Fatou Bensouda attends the trial for Malian Islamist militant Al Hassan Ag Abdoul Aziz Ag Mohamed Ag Mahmoud at the International Criminal Court in the Hague, the Netherlands, July 8, 2019.

Her November 2017 request to open an investigation angered Washington because as well as alleging that crimes were committed by the Taliban and Afghan security forces, Bensouda said she had information that members of the U.S. military and intelligence agencies were involved in crimes.

Her request said they allegedly “committed acts of torture, cruel treatment, outrages upon personal dignity, rape and sexual violence against conflict-related detainees in Afghanistan and other locations, principally in the 2003-2004 period.”

Earlier this year, U.S. Secretary of State Mike Pompeo said Washington would revoke or deny visas to ICC staff seeking to investigate alleged war crimes and other abuses committed by U.S. forces in Afghanistan or elsewhere.

Bensouda said that the Taliban and other insurgents killed more than 17,000 civilians since 2009.

 

Chilean Former President Bachelet Denies Links to Brazil’s Car Wash Scandal

Michelle Bachelet, the U.N. human rights chief, has denied claims by a Brazilian businessman under investigation in Brazil’s massive Car Wash scandal that he paid $141,000 to cover debts incurred by her 2013 Chilean presidential campaign.

Leo Pinheiro is reported to have told prosecutors as part of a plea bargain that his engineering firm, OAS, paid the money at the suggestion of the former Brazilian President Luiz Inacio Lula da Silva.

FILE – Former Brazilian President Luiz Inacio Lula da Silva.

Lula is serving a 12-year prison sentence for taking bribes in connection with the scandal, which involved payoffs and political kickbacks on contracts with oil company Petrobras and other state-run companies.

Two other Brazilian presidents have been implicated in the scandal, along with two Peruvian presidents.

On Monday, Brazil’s Folha de Sao Paolo newspaper cited messages between prosecutors working on Pinheiro’s case in a report that claimed he told them OAS paid the money to Bachelet’s campaign to ensure a consortium it was involved in retained a contract to build a bridge to the Chilean island of Chiloe.

On Tuesday, Bachelet, a socialist who served from 2006 to 2010 and again from 2014 to 2018 and is the current United Nations High Commissioner for Human Rights, denied the claims.

“My truth is the same as always, I have never had links with OAS,” she told Chilean TV station 24 Horas in Geneva.

She highlighted the fact that Pinheiro had failed to mention his claims to tell a Chilean prosecutor investigating the potential involvement of Chilean businesses or politicians in the cross-continental scandal.

She also pointed to the fact that the Chiloe bridge contract was awarded by the government of Chile’s current president, Sebastian Pinera.

Pinheiro was sentenced to 16 years in prison for his role in the scandal but released after three years in custody last weekend after his plea bargain was ratified by Brazil’s Supreme Court.

Chile’s chief prosecutor, Jorge Abbott, said in a statement on Monday that he would await formal confirmation of Pinheiro’s claims from Brazilian prosecutors before taking any action.

“We will continue with our investigation to determine the veracity of this financing and to be able to advance any corresponding criminal complaints,” he said.

“Whoever is ultimately implicated in this testimony, no one is above the law.”

Representatives for OAS, Lula and Pinheiro did not reply to requests for comment. Bachelet’s spokesman at the U.N., Rupert Colville, said she would not comment further on the issue.

“Obviously, as this concerns her political career in Chile, it is not an issue for OHCHR itself to comment on,” he said.

How Will No-Deal Brexit Chaos Affect Developing Economies?

Developing economies could face disruption from the shock waves of Britain crashing out of the European Union with no deal, according to analysts.

Brexit will affect not only Britain’s relations with the European Union, but also with hundreds of other countries with which Britain currently trades on EU terms, as Brussels sets trade policy for the entire EU bloc.

London has negotiated new post-Brexit trade arrangements with several countries, including Central American nations, Switzerland and South Korea, among others. That leaves hundreds of states — from smaller economies to relative giants like Japan and Canada — with whom trade would revert to World Trade Organization terms after a no-deal Brexit.

Striking new trade deals won’t be easy, said professor Anand Menon at a “Changing Europe” program at Kings College London.

FILE – A fruit stall displays fruit at a market in London, Aug. 7, 2019. Among Kenya’s exports to Britain are fruits and vegetables.

“Many countries with whom we try and do trade deals will say to us, ‘Yes, that would be great. We’d quite like to know what your relationship with the European Union is going to be before we sign anything with you, though.’ So, all roads lead to Brussels,” Menon said.

Such uncertainty doesn’t help countries that sell goods to Britain. For example, Kenya exports cut flowers, fruits and vegetables, with total exports to Britain estimated at $400 million per year.

Bangladesh exports nearly $4 billion worth of goods to Britain, which are currently traded under the EU’s preferential rules of origin that allocate zero or low tariffs on goods from developing countries. A no-deal Brexit will likely mean disruption, said Max Mendez-Parra, a trade expert at the Overseas Development Institute.

“The problem is that that will erode the preference that some of these countries receive. So for example, the advantage that a country such as Bangladesh and Cambodia have on certain products because they have access with a lower tariff, that would be removed.”

Speaking last month, Akinwumi Adesina, head of the Africa Development Bank, warned that the combination of a no-deal Brexit and the U.S.-China trade war were hitting African economies.

FILE – African Development president Akinwumi Adesina gives a press conference in Ouagadougou, Sept. 13, 2019.

“The industrial capacity has fallen significantly, and so the demand, even for products and raw materials from Africa, will only fall even further. So, the effect of that could have a ripple effect on African economies as the demand for their products weaken from China,” Adesina said.

Britain, meanwhile, is stepping up its search for new trade deals. International Trade Secretary Liz Truss is visiting New Zealand, Australia and Japan this week. Many of these nations’ companies have large investments in Britain and fear the chaotic fallout of a no-deal Brexit.

For smaller economies, the impact is likely to be less severe, Mendez-Parra said.

“African countries seem to be more relaxed, developing countries are more and more relaxed — except some specific countries that trade a lot with the U.K. — about the prospect of a no-deal [Brexit]. And this is because the U.K. has lost over many years the sort of importance as a destination of exports for many of these countries.”

A no-deal Brexit would hit the economies of many EU states like Ireland, Germany and the Netherlands. But it is in Britain where the impact will inevitably be hardest-felt.

Police Suspect Arson in Attack on Kyiv Home of Ex-National Bank Chief

This story originated in VOA’s Ukrainian Service.

Police have opened a criminal investigation in the apparent arson of a home belonging to the family of former National Bank of Ukraine (NBU) chief Valeria Gontareva, which was razed early Tuesday in Kyiv.

Gontarevа, who recently spoke with VOA’s Ukrainian Service from her home in London, has warned that a series of unfortunate events are evidence that her life and the lives of family members are being threatened as a result of financial reforms she oversaw during her tenure as NBU chief from 2014-2017.

FILE – Valeria Gontareva, former chair of the National Bank of Ukraine, speaks during an interview in London, Britain, Sept. 14, 2019.

Currently a senior policy fellow at the London School of Economics, Gontareva told VOA that she was hospitalized with broken bones after being struck by a car while walking through the streets of London on Aug. 26.

Ten days later, her daughter-in-law’s vehicle was set on fire in front of the family home in Kyiv, which was burned to the ground Tuesday. On Sept. 12, one week after the car was torched, Ukrainian police raided another of Gontareva’s Kyiv residential properties.

Gontarevа has told various news outlets that all of these events are tied to grievances held by banking tycoon Ihor Kolomoisky, the former owner Privatbank, the country’s largest lender, which was nationalized in 2016 as a part of Gontarevа-led reforms under former president Petro Poroshenko.

Gontarevа and her Ukrainian colleagues elected to nationalize Privatbank under Ukraine’s Finance Ministry after an audit revealed $5.5 billion in unaccounted funds. The move to nationalize was strongly supported by the International Monetary Fund, which saw nationalization of banks engaged in fraud as a key step to eradicating corruption.

An oligarch’s return

Kolomoisky, who returned to Kyiv after the April 2019 election of President Volodymyr Zelenskiy, had been living in Switzerland and Israel since Privatbank was nationalized.

He and Privatbank’s original investors have been closely watching a series of new reforms being undertaken by Zelenskiy to see whether the nationalization may be reversed.

FILE – Ukrainian business tycoon Ihor Kolomoisky speaks with journalists on the sidelines of the Yalta European Strategy annual meeting in Kyiv, Ukraine, Sept. 13, 2019.

“Kolomoisky wants the withdrawal of all Privatbank lawsuits against him all over the world, and the National Bank is hindering him,” Gontarevа told VOA, explaining that she has also been named as a key witness in various international fraud cases against Zelenskiy over his former ownership of Privatbank.

It was also reported that the search of Gontarevа’s home came 48 hours after Kolomoisky met privately with Zelenskiy.

On Tuesday, Ukrainian Prime Minister Oleksiy Honcharuk told the Financial Times that the president is seeking a settlement with Kolomoisky over Privatbank’s nationalization, which would contradict Zelenskiy’s vigorous reform agenda and possibly upset Western backers.

FILE – People walk past a branch of PrivatBank, the country’s biggest lender, in Kyiv, Ukraine, April 18, 2019.

According to the Financial Times, IMF officials have warned that a reversal of Privatbank’s nationalization would endanger nearly $4 billion in standby funding reserved to help Ukraine recover the $5.5 billion it lost recapitalizing Privatbank.

“Whatever solution we find, we have to find it together with the IMF,” Honcharuk was quoted as saying.

On Tuesday morning, Ukrainian Interior Minister Arsen Avakov took to Twitter to note that the fire coincides with a Kyiv visit by IMF officials.

Although Gontarevа said she has been criticized by some Ukrainians who say the alleged threats are part of an effort to bolster her asylum claims in the West, she told VOA the issues are much bigger than her life alone.

Old-school intimidation tactics

“Independence of the National Bank guarantees the independence of monetary policy, exchange rate policy, and the macro stability of the Ukrainian economy,” she said, apparently warning that Kolomoisky’s efforts to seek compensation for the loss of Privatbank represents a return to the old-school intimidation tactics of the oligarchic era.

Kolomoisky, who denied any involvement in the injuries or property damages sustained by Gontareva or her family, spoke with reporters on the sidelines of the Yalta European Strategy conference in Kyiv on Sept. 13.

Asked about the London hit-and-run that left Gontareva temporarily wheelchair-bound, Kolomoisky reportedly said with a smug grin: “I promised to send her a plane, not a car.”

London police said they were not treating the incident as suspicious.

Official statements

FILE – Ukrainian President Volodymyr Zelenskiy speaks during a meeting with law enforcement officers in Kyiv, Ukraine, July 23, 2019.

On Tuesday, Zelenskiy’s office issued a statement calling the fire at Gontarevа’s home “a brutal crime, the rapid investigation of which should be a priority in the work of the law enforcement agencies.”

“Everyone should feel protected in Ukraine, regardless of their past or current positions and political views,” he said.

On Sept. 5, NBU board members issued a statement supporting Gontarevа’s claims that the car and house fires and London car accident are part of an organized intimidation campaign.

“Kolomoisky wants the withdrawal of all Privatbank lawsuits against him all over the world,” the former chairman of the NBU says. “And the National Bank is hindering him.”

“We regard this as a real threat to the personal integrity of the regulators who have implemented and continue to reform the financial sector, and in this way endeavor to undermine the central bank’s ability to fulfil its purpose,” the statement said.

The U.S. Embassy in Ukraine has expressed support for Gontarevа, calling for “a prompt and impartial investigation into incidents involving former NBU chairman Gontareva and her family.”

Experts: Saudi Arabia’s Sophisticated Defense Vulnerable to Drone Strikes

The recent attacks on Saudi Arabia’s crude oil hub at the Abqaiq and Khurais production facilities reveal that even a nation with a sophisticated military and a massive defense budget is still vulnerable to drone strikes.

The United States says satellite images and intelligence information show Iranian weapons were used in the aerial attacks that have shut down half of the kingdom’s oil production. Security experts say this latest incident sparks growing concern over the rapid evolution of technologies expanding drones’ offensive capabilities.  

Unidentified U.S. officials have been telling Western media that more than a dozen attacks targeted the installations from a west-northwest direction and not from the southwest as claimed by Iranian-backed Houthi rebels in Yemen who said they carried out the coordinated assault.   

In July, the Houthis, who are fighting a Saudi-led coalition war in Yemen, showed off their Iranian-made weapons long-range cruise missiles, dubbed “Al-Quds”, and explosives-laden “Sammad 3” drones that reportedly can hit targets as far as 1,500 kilometers away.

No previous attack, since the Yemen conflict began four years ago, however, has interrupted oil supplies. But the assaults have taken 5.7 million barrels of oil a day off the world’s markets.  They have also exposed the vulnerability of the pumping heart of Saudi Arabia’s oil industry.

Defense analysts say the attacks have exposed structural problems in the kingdom’s defenses. They say the systems – albeit sophisticated – are designed to defend against traditional-style attacks – and not asymmetrical ones from the air by drones.

Smoke is seen following an apparent drone strike at an Aramco oil facility in the eastern city of Abqaiq, Saudi Arabia, Sept. 14, 2019.

‘Unprecedented’

Middle East analyst Theodore Karasik at Gulf State Analytics told VOA the incident’s security and military implications are huge.

“The gravity is really off the charts. This is literally the oil industry’s 9/11. The targeting of these two facilities was 100-percent successful in delivery of a swarm of cruise missiles and drones. This is the ultimate scenario for taking out energy infrastructure by use of this type of weaponry. The significance of the event itself and the damage done is unprecedented. We are dealing with a rapid escalation in terms of what the responses and counter responses will be,” he said.

Saudi authorities say their initial investigation shows Iranian devices were used in the attacks, but the location origin of the attacks was not clear and they were “working to determine the launch point.” Washington has urged Saudi Arabia to decide what the appropriate response to the attacks should be. Meanwhile, Saudi Arabia’s foreign ministry has called for an international investigation into the incident.

“Maybe the Saudis want to buy some time here before they respond in any kind of way,” said analyst Karasik. “It puts the Saudis in a tough spot about what they want to do next. But clearly there has to be a response from the West or else Iran will continue to run roughshod over everybody else.  The issue here is that Iran has shown all of its cards when it comes to missiles and drones. So, now in the response, if there is a military response it will target command and control nodes and the oil industry.  The thinking here is that any attack on Iran must set back Iran’s military ability 10 to 15 years.”

This satellite overview handout image obtained Sept. 16, 2019, courtesy of Planet Labs Inc., shows damage to oil infrastructure from weekend drone attacks at Abqaig, Sept. 14, 2019, in Saudi Arabia.

‘Game-changer’

Jeffrey Price, a security consultant and an aviation management professor at Metropolitan State University of Denver, told VOA the drone and missile attacks on Saudi Arabia are a “game-changer,” and he sees the drone strike as the “next front of a new war.”

“That’s the challenge. When you have so much territory to protect and protect it all evenly and equally it’s very difficult to defend, particularly with missiles and drones. They move much faster, particularly the missiles can move much faster than the manned aircraft can. Both of them have a much lower radar signature than a standard aircraft would, so it’s really about stepping up all of those defenses to detect these new threats,” he said.

It used to be that only governments had air forces, but drones have democratized violence from the sky,” says another analyst, Bernard Hudson, a fellow on Persian Gulf security issues at Harvard University, quoted in the Washington Post newspaper.

He says the Houthis, with Iran’s help and advice, have perfected the practice to a level no one else has done.  Jeffrey Price expects a change in how insurgents invest in weapons.

“What drones have done is really handed everybody the capability of a standoff strike autonomously and anonymously without any sort of accountability.  It’s going to be much harder to find out who is operating these,” Price said.

Price and others worry the current offensive capability of drones is many times ahead of the defensive capabilities that governments are now trying to develop.

 

 

Vegetarian Diets not Always the Most Climate-friendly, Researchers Say

It may be possible to help tackle climate change while still munching on the occasional bacon sandwich or slurping a few oysters, a new study suggested on Tuesday.

Scientists found that diets in which meat, fish or dairy products were consumed only once a day would leave less of a footprint on climate change and water supplies than a vegetarian diet including milk and eggs, in 95% of countries they analysed.

That is partly because raising dairy cows for milk, butter and cheese requires large amounts of energy and land, as well as fertilisers and pesticides to grow fodder, emitting greenhouse gases that are heating up the planet, the study said.

Diets that contain insects, small fish and molluscs, meanwhile, have as similarly small an environmental impact as plant-based vegan diets but are generally more nutritious, said researchers at the Johns Hopkins Center for a Livable Future.

They calculated greenhouse gas emissions and freshwater use for nine different diets – ranging from one meatless day a week and no red meat, to pescatarian and vegan – in 140 countries.

Many climate activists and scientists have called for a shift to plant-based diets to keep climate change in check and reduce deforestation, since producing red meat requires a lot of land for grazing and growing feed.

Agriculture, forestry and other land use activities accounted for nearly a quarter of man-made greenhouse gas emissions from 2007-2016, the U.N. climate science panel said in a flagship report last month.

But there is no one-size-fits-all solution, said Keeve Nachman, assistant professor at the Baltimore-based Johns Hopkins Bloomberg School of Public Health, who led the study on diets.

In low- and middle-income countries such as Indonesia, citizens on average need to eat more animal protein for adequate nutrition, he told the Thomson Reuters Foundation.

That means diet-related heat-trapping emissions and water use in poorer countries would need to rise to reduce hunger and malnutrition, while high-income countries should reduce their consumption of meat, dairy and eggs, the study said.

On average, producing a serving of beef emits 316 times more greenhouse gases – including methane – than pulses, 115 times more than nuts, and 40 times more than soy, it added.

According to the World Resources Institute, a U.S.-based think-tank, diners in North and South America, Europe and the former Soviet Union make up only a quarter of the global population but ate more than half of the world’s meat from ruminants – such as cattle, sheep and goats – in 2010.

The latest study also found that producing a pound of beef in Paraguay contributes nearly 17 times more greenhouse gases than in Denmark, partly because in Latin America, it often involves cutting down forests to clear land for cattle grazing.

A typical diet in Niger has the highest water footprint, researchers noted, mainly due to millet production and crop residues that cannot be consumed.

Ghani Escapes Election Violence That Killed 24

Afghanistan’s President Ashraf Ghani escaped an attack on his campaign rally in Parwan province that killed 24 people and wounded more than 30 others Tuesday.

The president was about to address the rally when a suicide bomber on a motorcycle detonated his explosives near the military facility where the gathering was held. Nasrat Rahimi, a spokesman for Afghan Ministry of Interior, tweeted that no one inside the building was harmed and the rally continued after the incident.

Qasim Sangeen, the head of Parwan provincial hospital told VOA bodies of the dead and wounded had been taken to a provincial hospital.

This is the first security incident since July 28, the official beginning of the election campaign in Afghanistan.  

The Afghan Taliban have taken responsibility for the attack, warning people to stay away from rallies and election related gatherings, promising to carry out further attacks on election activity.

“If despite the warnings they go to such meetings and get harmed, it is their responsibility,” a message from Taliban spokesman Zabiullah Mujahid said.

Afghan security forces work at the site of a suicide attack near the U.S. Embassy in Kabul, Afghanistan, Sept. 17, 2019.

Afghans are expecting a higher level of violence in the run up to the September 28 election due to a breakdown in peace talks between the United States and Taliban earlier this month.

The insurgent group has intensified its regional outreach, taking a trip first to Moscow and more recently to Iran.

“The main purpose was to explain our position on the recent developments in the peace process and the agreement that has already been completed,” said Taliban spokesman Suhail Shaheen, referring to an agreement between the insurgents and a U.S. team led by Special Representative on Afghanistan Reconciliation Zalmay Khalilzad.

Khalilzad had indicated that the two sides had agreed “in principle” to a deal and that he was waiting for his boss, President Donald Trump, to approve it. As both sides waited for a date to be announced for the formalization of the agreement, President Trump unexpectedly tweeted that the talks were over because of a Taliban attack that had killed a U.S. soldier.

The peace talks had continued after previous U.S. solider deaths in Afghanistan.

Shaheen, the Taliban spokesman, said the group had little idea why the U.S. backed out, saying that they contacted Khalilzad’s team after the Tweet.

“We wanted them to tell us why they finalized everything and agreed to sign it within a week, and quite unexpectedly backed out,” he said, adding that they did not receive an answer.

Still, he added that his side was willing to sign the already negotiated deal if the U.S. changed its mind but would continue to fight if the U.S. wanted to continue the war.  

He also confirmed that they were in touch with other countries as well, like China and European and Central Asian countries, and would visit them if invited

“Regional countries want to know what happened, and why?” he said.

Cambodian Government’s Request for ‘Meetings’ Seen as Intimidation

The Cambodian government summoned three human rights organizations to meetings in Phnom Penh to examine research they published and comments one of them gave to the media, a move the NGOs described as attempts at intimidation. 

The organizations are Sahmakum Teang Tnaut (STT),  Licadho and Transparency International (TI).   

TI director Preap Kol was summoned separately for separate comments.

In their report Collateral Damage: Land Loss and Abuses in Cambodia’s Microfinance Sector, Licadho and STT highlight cases of Cambodians having lost their land when their land titles were used as collateral for taking up a loan. The report tells of Cambodian citizens being left deep in debt. 

Following the publication of the report, Licadho and STT were asked to meet Council of Ministers spokesman Phay Siphan on September 4. 

Licadho director Naly Pilorge said that most of the meeting was spent on pushing both organizations to sign a pre-written statement that implied that the results found in their research were not accurate. “Of course, Licadho and STT refused to sign this joint statement,” she said. “So most of the meeting was to push, to coerce, to threaten both organizations to sign on.”

She said she assumed that they were called to meet because the report concentrated upon the issue of debt and raised issues that investors should be wary of. 

The government has repeatedly stressed that Cambodia’s economy was growing at a steady rate.

The two organizations were called in for a second meeting, an invitation both organizations declined. 

Government spokesman Phay Siphan said he had called the meeting with the two organizations because he said the “fake report is biased” and was “misrepresenting the reality.”

Chak Sopheap, executive director of the Cambodian Center for Human Rights, condemned the move by the Council of Ministers. “The questioning of STT, Licadho and TI representatives sends a clear message to other human rights defenders and government critics that dissent is not tolerated in Cambodia,” she said in an email to VOA. “The intimidation of these NGOs formulates part of a wider, systemic attack on free speech and peaceful dissent. …. The severe curtailment of the abilities of citizens to exercise their fundamental freedoms has caused a chilling rise in self-censorship, illustrating that Cambodian’s feel unable or are unwilling to speak freely.”

Spokesman Siphan rejected that criticism. “I don’t condemn them… I invite them,” he said, rejecting allegations that he had pressured them. “I do not put pressure on them.”

Preap Kol, country director of Transparency International, had also been called for a meeting with Phay Siphan for comments he gave to the Southeast Asia Globe. 

“Cambodia applies ‘free market economy’ ideology and, as far as I know, does not yet have a policy that ensures an equitable share of profit to local people,” Kol told the Southeast Asia Globe. “Therefore, the majority of Cambodian people, especially those who are poor or disadvantaged, are not ideally benefiting from the impressive economic growth.”

Kol excused himself, saying that he was out of the country currently. 

Siphan said he would keep inviting Kol to meet. 

Kol said the move to call him in for a meeting was unusual and a first-off. “I have never been invited to a meeting of this nature to clarify my comments in the media,” he said in a message to Voice of America from Sweden. “This appears to make people feel intimidated to speak to the media but this would not stop me from continuing to speak the truth… I am open to meet and discuss with any concerned  as necessary, preferably in an environment that is free of intimidation and oppression.”

Gates Foundation Says Billions ‘Mired in Inequality’

Living conditions have improved greatly since 2000 even for the world’s poorest people, but billions remain mired in “layers of inequality.”

That is the assessment from the Bill & Melinda Gates Foundation’s third annual report on progress toward U.N. Sustainable Development Goals – 17 measures that most countries have pledged to try to reach by 2030. Those efforts are falling short, says Bill Gates.

“As much progress as we’re making, a child in many countries still over 10% are dying before the age of five. And in richer countries it is less than 1%. So the idea that any place in the world is still 10%, some almost 15%, that’s outrageous, and it should galvanize us to do a better job,” Gates told VOA.

The 63-year-old Microsoft co-founder and philanthropist sat down with VOA at the foundation’s offices in advance of the report, which was released to coincide with the opening of the United Nations General Assembly.

This year’s report uses geography and gender as lenses for examining progress, particularly in terms of health and education.

It finds “an increasing concentration of high mortality and low educational attainment levels” in Africa’s Sahel region as well as in parts of Pakistan, Afghanistan and northern India. People in those regions experience “multiple deprivations, including some of the highest fertility rates in the world, high levels of stunting and low vaccine coverage,” the report says.

Disadvantages fall more heavily on women than on men. Girls generally get less formal education than boys; those in sub-Saharan Africa average two fewer years of education. And even when girls obtain a good education, they’re less likely to parlay it into paid work. 

“Globally, there is a 26 percentage point gap between men’s and women’s labor force participation,” according to the report.

Monitoring progress on these fronts aligns with the Gates Foundation’s commitments, which include improving global health and aiding development in low-income countries. Since its start in 2000, the foundation has spent billions on efforts such as improving vaccines and nutrition, combatting malaria and other diseases, supporting innovative toilet designs to improve sanitation, and ensuring good data collection to identify problems.

As the news site Vox has pointed out, the Gates Foundation each year outspends the World Health Organization and most individual countries on global health. It has built the world’s largest trust — $46.8 billion as of December, according to its website.

That has led some to question philanthropy’s role in development.

“The billions of dollars available to Gates, Rockefeller and Wellcome might be spent with benevolent intent, but they confer extensive power. A power without much accountability,” Wellcome communications director Mark Henderson wrote last week in Inside Philanthropy, announcing that the London-based health charity – second in spending after Gates – would increase its transparency.

Netanyahu Faces Tough Re-Election Fight Against Rival Gantz

Israelis are voting Tuesday in general elections as Prime Minister Benjamin Netanyahu faces a challenge from former military chief Benny Gantz.

Polls show Tuesday’s contest too close to call, with Netanyahu’s right-wing Likud party tied with Gantz’s centrist Blue and White party, with neither predicted to win a majority of seats in the 120-member Knesset, Israel’s parliament. Ten parties could win seats in the legislature.

That could possibly leave Avigdor Lieberman, a former defense minister and one-time Netanyahu ally but now a rival, as the kingmaker to form a coalition government. Lieberman, the head of the Israel Beitenu party, could double his seats in parliament from five to 10. His campaign slogan is to “make Israel normal again,” a motto aimed at combating what he says is the undue influence of Israel’s ultra-Orthodox parties on political life in the country.

Netanyahu made a last-day nationalist campaign pitch Monday saying if he wins re-election, he would annex all the Jewish settlements in the West Bank over the protests of Palestinian leaders.

He told Israeli Army Radio, “I intend to extend sovereignty on all the settlements and the (settlement) blocs,” including “sites that have security importance or are important to Israel’s heritage.”  

Netanyahu, Israel’s longest-serving leader, is facing his toughest political fight to win a record fifth term to stay in power even as he is confronting possible corruption charges. Israel is staging its second national vote in less than six months, with Netanyahu unable to cobble together a parliamentary majority to form a government after the April vote.

A man hangs up an Israeli flag at a polling station as Israelis begin to vote in a parliamentary election in Rosh Ha’ayin, Israel September 17, 2019.

Gantz has presented himself as an honorable alternative to Netanyahu.

“Blue and White under my leadership will change the direction of the ship of state of Israeli democracy,” he wrote in the Maariv newspaper. “No more instigating rifts in an attempt to divide and conquer, but rather quick action to form a unity government.”

In the run-up to the election, Netanyahu has tried to bolster his nationalist support, along with an assist from his long-time friend, U.S. President Donald Trump, who last weekend floated the possibility of a mutual defense pact between the decades-long allies.

Trump said such a treaty “would further anchor the tremendous alliance between our two countries.”

The U.S. also has another link to the Israeli election, with the Trump administration expected to release its long-delayed Israeli-Palestinian peace plan soon after the vote. The U.S. in June unveiled a $50 billion plan to boost Palestinian economic fortunes, but neither the Palestinians nor Israelis attended the announcement in Bahrain.

Netanyahu has made several campaign pledges in an attempt to win over nationalist voters. He vowed to annex the Jordan Valley, an area Palestinians consider as key farmland in any future Palestinian state. In protest, the Palestinian Authority held a cabinet meeting in the Jordan Valley village of Fasayil on Monday, a day after Israel’s Cabinet met elsewhere in the valley.

“The Jordan Valley is part of Palestinian lands and any settlement or annexation is illegal,” Palestinian Prime Minister Mohammed Shtayyeh said at the start of the meeting. “We will sue Israel in international courts for exploiting our land and we will continue our struggle against the occupation on the ground and in international forums.”

No new Measles Cases Reported in Fading US Outbreak

The nation’s worst measles epidemic in 27 years could be in its final stages as a week went by with no new reported cases.

“To get to zero is tremendously encouraging,” said Jason Schwartz, a Yale University expert on vaccination policy.

The current epidemic emerged about a year ago and took off earlier this year, with most of the cases reported in Orthodox Jewish communities in and around New York City. It started with travelers who had become infected overseas but spread quickly among unvaccinated people.

In the spring, 70 or more new cases were being reported every week. Not long ago, the nation that saw that many measles cases in a whole year.

So far this year, 1,241 cases have been confirmed — a number that didn’t rise last week, the Centers for Disease Control and Prevention reported Monday. The last time the CDC reported no new measles cases was 11 months ago.

New York officials responded to the explosion of measles cases with a wave of measures, including education campaigns to counter misinformation about vaccine safety and fines for people who didn’t get vaccinated.

The epidemic has threatened the Unites States’ nearly 2-decade-old status as a nation that has eliminated measles. The status could come to an end if the disease spreads among Americans for a year or more. Other countries, including Greece and the United Kingdom, recently lost their elimination status amid a global surge in the disease.

Measles outbreaks are typically declared over when 42 days pass without a new infection. If no new cases crop up, the national outbreak would likely end on or about Sept. 30 — just before officials might have to decide on the U.S. elimination status.

The loss of elimination status in the U.S. could take the steam out of measles vaccination campaigns in other countries, said Dr. William Schaffner, a Vanderbilt University vaccine expert.

Health ministers around the world might say, “Why should we strive for elimination? We’ll just do the best we can to control measles, but we won’t go the extra several miles to get to zero,” Schaffner said.

Global Nuclear Threat ‘Highest Since Cuban Missile Crisis’

World leaders meeting at the United Nations General Assembly, which begins Tuesday in New York, must make nuclear arms control a priority, according to a group of over 100 political, military and diplomatic figures. They have issued a statement warning that the risks of nuclear accident, misjudgment or miscalculation have not been higher since the Cuban Missile Crisis. Henry Ridgwell reports from London.

IS Says it Releases News Audio of Leader Abu Bakr al-Baghdadi

The Islamic State terror group has issued a new audio recording , claiming to show the group’s reclusive leader Abu Bakr al-Baghdadi encouraging his supporters and fighters to conduct more military operations and engage in more propaganda.

The recording, posted to the internet Monday by IS’s al-Furqan media division, also calls on IS supporters not to forget about Muslims being held in prisons and refugee camps.

U.S. officials have yet to comment on the purported recording.

Earlier this year, the terror group released a video of the man it claimed was Abu Bakr al-Baghdadi seeking revenge for the fall of the terror group’s self-declared caliphate In Iraq and Syria.

FILE -  This image made from video posted on a militant website July 5, 2014, purports to show the leader of the Islamic State group, Abu Bakr al-Baghdadi, delivering a sermon at a mosque in Iraq.
IS Claims Video Shows Reclusive Leader, Calls for Revenge
The Islamic State issued a new video Monday claiming to show its reclusive leader delivering a message to his followers, urging them to seek revenge for the fall of the terror group’s self-declared caliphate In Iraq and Syria.

The more than 18-minute-long video posted to the internet by IS’s al-Furqan media division shows a man, allegedly Abu Bakr al-Baghdadi, sitting cross-legged against a white backdrop with a machine gun and a couple of pillows by his side. 

The man is seen speaking with other IS members, whose faces are blurred or covered with masks, acknowledging the recent fall of the

Before that, the 48-year-old Baghdadi had not been seen since he gave a sermon at the al-Nuri Mosque in Mosul, Iraq, in July 2014.

The lack of public appearances and the sporadic messages attributed to him had led to speculation about his whereabouts, while also sparking numerous rumors of his death. But U.S. military and intelligence officials have long believed Baghdadi is alive and hiding in remote areas of Syria or Iraq where IS remains entrenched, possibly with local support.

Since 2016, the United States has offered a reward of up to $25 million for information that helps bring Baghdadi to justice. Only one other person, al-Qaida leader Ayman al-Zawahiri, has a reward that high.

VOA’s Jeff Seldin contributed to this report.

 

Israeli PM Vows to Annex ‘All The Settlements’ in West Bank

Israeli Prime Minister Benjamin Netanyahu vowed Monday to annex “all the settlements” in the West Bank, including an enclave deep in the heart of the largest Palestinian city, in a last-ditch move that appeared aimed at shoring up nationalist support the day before a do-over election.

Locked in a razor tight race and with legal woes hanging over him, Netanyahu is fighting for his political survival. In the final weeks of his campaign he has been doling out hard-line promises meant to draw more voters to his Likud party and re-elect him in Tuesday’s unprecedented repeat vote.

“I intend to extend sovereignty on all the settlements and the [settlement] blocs,” including “sites that have security importance or are important to Israel’s heritage,” Netanyahu said in an interview with Israeli Army Radio, part of an eleventh-hour media blitz.

Asked if that included the hundreds of Jews who live under heavy military guard amid tens of thousands of Palestinians in the volatile city of Hebron, Netanyahu responded “of course.”

Israelis head to the polls Tuesday in the second election this year, after Netanyahu failed to cobble together a coalition following April’s vote, sparking the dissolution of parliament.

Netanyahu has made a series of ambitious pledges in a bid to whip up support, including a promise to annex the Jordan Valley, an area even moderate Israelis view as strategic but which the Palestinians consider the breadbasket of any future state.

To protest that announcement, the Palestinian Authority held a Cabinet meeting in the Jordan Valley village of Fasayil on Monday, a day after Israel’s Cabinet met elsewhere in the valley.

“The Jordan Valley is part of Palestinian lands and any settlement or annexation is illegal,” Prime Minister Mohammed Shtayyeh said at the start of the meeting. “We will sue Israel in international courts for exploiting our land and we will continue our struggle against the occupation on the ground and in international forums.”

Critics contend that Netanyahu’s pledges, if carried out, would enflame the Middle East and eliminate any remaining Palestinian hope of establishing a separate state. His political rivals have dismissed his talk of annexation as an election ploy noting that he has refrained from annexing any territory during his more than a decade in power.   

Israel captured the West Bank and east Jerusalem from Jordan in the 1967 war.

Over 2.5 million Palestinians now live in occupied territories, in addition to nearly 700,000 Jewish settlers. Israel already has annexed east Jerusalem in a move that is not internationally recognized. The international community, along with the Palestinians, overwhelmingly considers Israeli settlements in the West Bank and east Jerusalem illegal.

Tuesday’s vote will largely be a referendum on Netanyahu, who this year surpassed Israel’s founding prime minister as the country’s longest-serving leader.
 
He has cast himself as the only candidate capable of facing Israel’s myriad challenges. But his opponents say his legal troubles — including a recommendation by the attorney general to indict him on bribery, fraud and breach of trust charges loom too large for him to carry on.

Outsiders Surge in Tunisia Presidential Polls

Two candidates who claim they will win through to Tunisia’s presidential runoff — a conservative law expert and an imprisoned media mogul —
could hardly be more different, but both bill themselves as political outsiders.

Nabil Karoui, behind bars since August 23 on charges of money laundering, is a populist showman whose political colors changed with the times, culminating in the launch of his Qalb Tounes (Heart of Tunisia) party just months ago.

Maverick Kais Saied, meanwhile, is an academic committed to social conservatism who has ploughed his own furrow.  

Nicknamed “Robocop” due to his abrupt, staccato speech and rigid posture, the impeccably dressed Saied shunned political parties, avoided mass rallies and campaigned door-to-door.

Hours after polling booths closed in the country’s second free presidential polls since the 2011 Arab Spring, he declared he was in pole position.

“I am first in the first round and if I am elected president I will apply my program,” he told AFP in a spartan apartment in central Tunis.

On the campaign trail, he advocated a rigorous overhaul of the constitution and voting system, to decentralize power “so that the will of the people penetrates into central government and puts an end to corruption”.

With a quarter votes counted Monday, Tunisia’s electoral commission (ISIE) put Saied in the lead with 19 percent of the vote.

Often surrounded by young acolytes, he has pushed social conservatism, defending the death penalty, criminalisation of homosexuality and a sexual assault law that punishes unmarried couples who engage in public displays of affection.

Tunisia’s ‘would-be Berlusconi’

While Saied came from the sidelines with his unique approach to courting Tunisia’s voters — and did so with barely any money behind him — media magnate Nabil Karoui’s story is more flamboyant.

He has long maintained a high profile, using his Nessma TV channel to launch high-profile charity campaigns, often appearing in designer suits even while meeting some of the country’s poorest citizens in marginalized regions.

These charitable endeavors, including doling out food aid, “helped me to get closer to people and realize the huge social problems facing the country,” he once told AFP. “I have been touched by it.”

Unlike Saied, he previously threw his lot in with an established political party, officially joining Beji Caid Essebsi’s Nidaa Tounes in 2016, after actively supporting the late president in his successful campaign two years earlier.

He formally stepped down from Nessma’s management after being criticized by international observers for his channel’s partisan conduct in 2014.

But he subsequently made no secret of continuing to pull the strings at the channel, while honing his political profile.    

His supporters claim his arrest was politically motivated, but detractors cast him as a would-be Silvio Berlusconi, the former Italian premier who they allege partly owns his channel.

The arrest of the controversial Tunisian businessman in August followed his indictment the previous month in an investigation that dates back to 2017 and the submission by anti-corruption watchdog I-Watch of a dossier accusing him of tax fraud.

The 56-year-old was still given the green light to run and hit the campaign trail by proxy, deploying his wife and activists from his Heart of Tunisia party to woo voters.

“Nabil Karoui is in the second round,” an official from the mogul’s party told AFP late Sunday, as the businessman sat in prison outside the capital Tunis.

Partial results from ISIE on Monday put him in the second spot.

Observers say that if Karoui does make it to the second round, it will be hard for authorities to justify keeping him behind bars without a trial.

Saied, meanwhile, has not been immune from discomforting scrutiny.

Confronted late last week in a broadcast debate with a photo showing him meeting an ex-member of a banned Salafi group, he asked: “Do I have to ask permission to meet someone?”

But in a sign of voters’ antipathy towards the overall field, the ISIE put turnout at 45 percent, down substantially from the 64 percent recorded for the country’s first democratic polls in 2014.

The date of a second and final round between the top two candidates has not been announced, but it must be held by October 23 at the latest and may even take place on the same day as legislative polls set for October 6.

 

 

 

Johnson, Juncker Hold Brexit Talks; No Visible Breakthrough

British Prime Minister Boris Johnson and European Commission President Jean-Claude Juncker held their first face-to-face talks Monday, without any visible signs of a breakthrough on an elusive Brexit deal.

The two men talked over a two-hour lunch of snails and salmon in Juncker’s native Luxembourg, amid claims from the U.K. — though not the EU — that a deal is in sight.
 
The European Commission said after the meeting that Britain had yet to offer any “legally operational” solutions to the issue of the Irish border, the main roadblock to a deal.
 
“President Juncker underlined the Commission’s continued willingness and openness to examine whether such proposals meet the objectives of the backstop”— a border provision rejected by Britain.
 
 “Such proposals have not yet been made,” the European Commission said in a statement, adding that officials “will remain available to work 24/7.”
 
Johnson says the U.K. will leave the EU on the scheduled Oct. 31 date, with or without a withdrawal agreement. But he insists he can strike a revised divorce deal with the bloc in time for an orderly departure. The agreement made by his predecessor, Theresa May, was rejected three times by Britain’s Parliament.
 
Johnson said in a Daily Telegraph column Monday that he believes “passionately” that a deal can be agreed and approved at a summit of EU leaders on Oct. 17-18.
 
While the EU says it is still waiting for firm proposals from the U.K., Johnson spokesman James Slack said Britain had “put forward workable solutions in a number of areas.”
 
He declined to provide details, saying it was unhelpful to negotiate in public.
 
The key sticking point is the “backstop,” an insurance policy in May’s agreement intended to guarantee an open border between EU member Ireland and the U.K.’s Northern Ireland. That is vital both to the local economy and to Northern Ireland’s peace process.
 
British Brexit supporters oppose the backstop because it keeps the U.K. bound to EU trade rules, limiting its ability to forge new free trade agreements around the world after Brexit.
 
Britain has suggested the backstop could be replaced by “alternative arrangements,” but the EU says it has yet to hear any workable suggestions.
 
Neither side expects a breakthrough Monday, but much still rests on Johnson’s encounter with Juncker, who like other EU officials is tired of the long-running Brexit drama, and wary of Johnson’s populist rhetoric.
 
The British leader has vowed to leave the bloc “do or die” and compared himself to angry green superhero the Incredible Hulk, telling the Mail on Sunday newspaper: “The madder Hulk gets, the stronger Hulk gets, and he always escapes … and that is the case for this country.”
 
European Parliament Brexit chief Guy Verhofstadt branded the comparison “infantile,” and it also earned a rebuke from “Hulk” star Mark Ruffalo.
 
Ruffalo tweeted: “Boris Johnson forgets that the Hulk only fights for the good of the whole. Mad and strong can also be dense and destructive.”
 
Monday’s meeting marks the start a tumultuous week, with the Brexit deadline just 45 days away.
 
On Tuesday, Britain’s Supreme Court will consider whether Johnson’s decision to prorogue — or suspend — the British Parliament for five weeks was lawful, after conflicting judgments in lower courts.
 
Johnson sent lawmakers home until Oct. 14, a drastic move that gives him a respite from rebellious lawmakers determined to thwart his Brexit plan.
 
Last week, Scotland’s highest civil court ruled the prorogation illegal because it had the intention of stymieing Parliament. The High Court in London, however, said it was not a matter for the courts.
 
If the Supreme Court overturns the suspension, lawmakers could be called back to Parliament as early as next week.
 
Many lawmakers fear a no-deal Brexit would be economically devastating, and are determined to stop the U.K. from crashing out of the bloc on Oct. 31.
 
Just before the suspension, Parliament passed a law that orders the government to seek a three-month delay to Brexit if no agreement has been reached by late October.
 
Johnson insists he will not seek a delay under any circumstances, though it’s not clear how he can avoid it.
 
Foreign Secretary Dominic Raab said Monday that the government would obey the law, but suggested it would try to find loopholes.
 
  “I think the precise implications of the legislation need to be looked at very carefully,” he told the BBC. “We are doing that.”
    

Democratic Presidential Candidates Call for Kavanaugh’s Impeachment

Several Democratic presidential candidates on Sunday lined up to call for the impeachment of Supreme Court Justice Brett Kavanaugh in the face of a new, uninvestigated, allegation of sexual impropriety when he was in college.

Kavanaugh was confirmed last October after emotional hearings in the Senate over a sexual assault allegation from his high school years. The New York Times now reports that Kavanaugh faced a separate allegation from his time at Yale University and that the FBI did not investigate the claim. The latest claim mirrors one offered during his confirmation process by Deborah Ramirez, a Yale classmate who claimed Kavanaugh exposed himself to her during a drunken party.

When he testified before the Senate Judiciary Committee last year, Kavanaugh denied all allegations of impropriety .

Sen. Kamala Harris, D-Calif., said after the new report that “Brett Kavanaugh lied to the U.S. Senate and most importantly to the American people.” She tweeted: “He must be impeached.”

A 2020 rival, Massachusetts Sen. Elizabeth Warren, tweeted that “Confirmation is not exoneration, and these newest revelations are disturbing. Like the man who appointed him, Kavanaugh should be impeached.”

Former Texas Rep. Beto O’Rourke asserted in a tweeted, “We know he lied under oath. He should be impeached.” He accused the GOP-run Senate of forcing the FBI “to rush its investigation to save his nomination.”

Their comments followed similar ones from Julian Castro, a former U.S. housing secretary, on Saturday night. “It’s more clear than ever that Brett Kavanaugh lied under oath,” he tweeted. “He should be impeached and Congress should review the failure of the Department of Justice to properly investigate the matter.”

Sen. Bernie Sanders of Vermont didn’t refer to impeachment by name in a tweet Sunday, but said he would “support any appropriate constitutional mechanism” to hold Kavanaugh “accountable.”

Later Sunday, Sen. Cory Booker tweeted: “This new allegation and additional corroborating evidence adds to a long list of reasons why Brett Kavanaugh should not be a Supreme Court justice. I stand with survivors and countless other Americans in calling for impeachment proceedings to begin.”

Democrats control the House, which holds the power of impeachment. If the House took that route, a trial would take place in the Senate, where Republicans now have a majority, making it unlikely that Kavanaugh would be removed from office.

Trump, who fiercely defended Kavanaugh during his contentious confirmation process, dismissed the latest allegation as “lies.”

In a tweet Sunday, Trump said Kavanaugh “should start suing people for libel, or the Justice Department should come to his rescue.” It wasn’t immediately clear how the Justice Department could come to the justice’s defense.

Trump added that they were “False Accusations without recrimination,” and claimed his accusers were seeking to influence Kavanaugh’s opinions on the bench.

Biden on Racism: Whites ‘Can Never Fully Understand’

Visiting a black church bombed by the Ku Klux Klan in the civil rights era, Democratic presidential candidate Joe Biden said Sunday the country hasn’t “relegated racism and white supremacy to the pages of history” as he framed current tensions in the context of the movement’s historic struggle for equality.

He spoke to parishioners at 16th Street Baptist Church in downtown Birmingham as they commemorated the 56th anniversary of the bombing that killed four black girls in 1963. “It’s in the wake of these before-and-after moments when the choice between good and evil is starkest,” he said.

The former vice president called out the names of the victims — Addie Mae Collins, Denise McNair, Carole Robertson and Cynthia Wesley. He drew nods of affirmation as he warned that “the same poisonous ideology that lit the fuse on 16th street” has yielded more recent tragedies including in 2015 at a black church in South Carolina, in 2018 at a Jewish synagogue in Pittsburgh and in August at an El Paso, Texas , Wal-Mart frequented by Latino immigrants.

He condemned institutional racism as the direct legacy of slavery and lamented that the nation has “never lived up to” the ideals of equality written into its founding documents. But then he added a more personal note. “Those who are white try,” Biden said, “but we can never fully understand.”

Biden praised the congregation for offering an example of “rebirth and renewal” to those communities and to a nation he said must recommit itself to “giving hate no safe harbor — demonizing no one, not the poor, the powerless, the immigrant or the ‘other.’”

Biden’s appearance in Birmingham comes at a political inflection point for the Democrats’ 2020 polling leader. He is trying to capitalize on his strength among older black voters even as some African American and other nonwhite leaders, particularly younger ones, view Biden more skeptically.

From his long time in government, as a senator and vice president, the 76-year-old Biden has deep ties in the black community. Though Biden didn’t mention President Donald Trump in his remarks, he has made withering critiques of the president’s rhetoric and policies on race and immigration a central feature of his candidacy.

Yet Biden also draws critical, even caustic appraisals from younger nonwhite activists who take issue with his record. That includes his references to working productively alongside segregationist senators in the 1970s to distrust over his lead role in a 1994 crime law that critics frame as partially responsible for mass incarceration, especially black men.

The dynamics flared up again Thursday after Biden, during a Democratic debate, offered a sometimes incoherent answer when asked how the nation should confront the legacy of slavery. At one point, Biden suggested nonwhite parents use a play a record player to help their children with verbal and cognitive development. That led to a social media firestorm and commentary that Biden takes a paternalistic view of black and brown America even as he hammers Trump for emboldening more obvious forms of racism.

Author Anand Giridharadas called Biden’s answer “appalling — and disqualifying” for “implying that black parents don’t know how to raise their own children.”

Biden gave only slightest of nods to some of those critiques Sunday.

Biden’s audience seemed to reflect his relative popularity with black voters more than the fierceness of his critics.

Parishioners wielded their cellphones when he arrived with Alabama Sen. Doug Jones, a white politician beloved in the church for his role as the lead prosecutor who secured convictions in the bombing case decades after it occurred. The congregation gave Biden a standing ovation as he concluded his 20-minute remarks.

Alvin Lewis, a 67-year-old usher at 16th Street Baptist, said the welcome doesn’t necessarily translate to votes. But as Lewis and other congregants offered their assessment of race relations in the United States under Trump, they tracked almost flawlessly the arguments Biden has used to anchor his campaign.

“Racism has reared its head in a way that’s frightening for those of us who lived through it before,” Lewis said, who said he was at home, about “20 blocks from here” when the Klan bomb went off at 10:22 a.m. on Sept. 15, 1963. “No matter what anyone says, what comes out of the president of the United States’ mouth means more than anything,” Lewis added, saying Trump “has brought out some nastier times in this country’s history.”

Antoinette Plump, a 60-year-old who took in the service alongside lifelong member Doris Coke, 92, said racism “was on the back burner” until Trump “brought out all the people who are so angry.”

Coke, who was at the church on that Sunday in 1963, said, “We’ve come a long way.” But she nodded her head as Plump denounced Trump.

Nearby sat Fay Gaines, a Birmingham resident who was in elementary school in 1963 — just a few years younger than the girls who died.

Gaines said she’s heard and read criticisms about Biden. Asked whether she’d seen his “record players” answer in the debate, she laughed and said she did. But he remains on her “short list” of preferred candidates.

“I think there may just be a generational divide,” she said of the reaction. “People who lived through all these struggles maybe can understand how to deal with the current situation a little better.”

That means, she said, recognizing a politician’s core values.

“I trust Joe Biden,” she said. “History matters. His history matters.”

Union Votes to Strike at General Motors’ US Plants

Roughly 49,000 workers at General Motors plants in the U.S. plan to go on strike just before midnight Sunday, but talks between the United Auto Workers and the automaker will resume.

About 200 plant-level union leaders voted unanimously in favor of a walkout during a meeting Sunday morning in Detroit. Union leaders said the sides were still far apart on several major issues and they apparently weren’t swayed by a GM offer to make new products at or near two of the four plants it had been planning to close, according to someone briefed on the matter.

“We stood up for General Motors when they needed us most,” union Vice President Terry Dittes said in a statement, referring to union concessions that helped GM survive bankruptcy protection in 2009. “Now we are standing together in unity and solidarity for our members.”

UAW spokesman Brian Rothenberg said Sunday evening that contract talks would resume at 10 a.m. Monday, but the strike was still expected to go ahead.

GM on Friday offered to build a new all-electric pickup truck at a factory in Detroit that is slated to close next year, according someone who spoke to The Associated Press on the condition of anonymity because that person wasn’t authorized to disclose details of the negotiations, which hadn’t been released to the public. The automaker also offered to open an electric vehicle battery plant in Lordstown, Ohio, where it has a plant that has already stopped making cars. The new factory would be in addition to a proposal to make electric vehicles for a company called Workhorse, the person said.

It’s unclear how many workers the two plants would employ. The closures, especially of the Ohio plant, have become issues in the 2020 presidential campaign. President Donald Trump has consistently criticized the company and demanded that Lordstown be reopened.

The UAW’s Rothenberg said the company made general statements about why it is planning to strike, but he would not comment further on GM’s offer. The union said it would strike for fair wages, affordable health care, profit sharing, job security and a path to permanent employment for temporary workers.

In a statement, GM also said the offer made to the union on Saturday included more than $7 billion in U.S. factory investments and the creation of 5,400 new positions, a minority of which would be filled by existing employees. GM would not give a precise number. The investments would be made at factories in four states, two of which were not identified.

The statement also said the company offered “best in class wages and benefits,” improved profit sharing and a payment of $8,000 to each worker upon ratification. The offer included wage or lump sum increases in all four years of the deal, plus “nationally leading” health benefits.

The announcement came hours after the union let its contract with GM expire Saturday night.

If there is a strike, picketers would shut down a total of 53 GM facilities, including 33 manufacturing sites and 22 parts distribution warehouses. GM has factories in Michigan, Ohio, New York, Kentucky, Tennessee, Texas, Missouri, Indiana and Kansas.

On Saturday, Dittes, the union’s chief bargainer, said in a letter to GM members that after months of bargaining, both the union and GM were far apart on issues such as wages, health care, temporary employees, job security and profit-sharing. The letter to members and another one to GM were aimed at turning up the pressure on GM negotiators.

A strike would bring to a halt GM’s U.S. production, and would likely stop the company from making vehicles in Canada and Mexico as well. That would mean fewer vehicles for consumers to choose from on dealer lots, and it would make it impossible to build specially ordered cars and trucks.

The strike would be the union’s first since a two-day work stoppage at GM in 2007.

On Friday, union leaders extended contracts with Ford and Fiat Chrysler indefinitely, but the pact with General Motors was still set to expire Saturday night.

The union picked GM, which is more profitable than Ford and Fiat Chrysler, as the target company, meaning it’s the focus of bargaining and would be the first company to face a walkout.

Talks between the union and GM were tense from the start, largely because GM plans to close four U.S. factories, including the one on the Detroit border with the enclave of Hamtramck, and Lordstown. The union has promised to fight the closures.

Here are the main areas of disagreement:

— GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don’t want higher fixed costs.

— The union also wants new products for the four factories GM wants to close. The factory plans have irked some workers, although most of those who were laid off will get jobs at other GM factories. GM currently has too much U.S. factory capacity.

— The companies want to close the labor cost gap with workers at plants run by foreign automakers. GM pays $63 per hour in wages and benefits compared with $50 at the foreign-owned factories. GM’s gap is the largest at $13 per hour, followed by Ford at $11 and Fiat Chrysler at $5, according to figures from the Center for Automotive Research.

— Union members have great health insurance plans and workers pay about 4% of the cost. Employees at large firms nationwide pay about 34%, according to the Kaiser Family Foundation. The automakers would like to cut costs.

 

Economy, Honesty Key Concerns as Tunisians Choose Their President

Tunisians voted Sunday to select their next president among some two dozen candidates. More than seven million people were eligible to cast their ballot in what is only the North African country’s second free presidential election, eight years after its so-called Jasmine Revolution.

A steady stream of people filed into this primary school in the working class Tunis suburb of Ariana, lining up under posters offering instructions on how to vote. Nineteen-year-old college student Yomna El-Benna is excited to be voting for the first time.

“I’m going to vote for Mourou… for many reasons…. when I was deciding, I eliminated the persons who I’m not convinced with… they cannot lead Tunisia,” said El-Benna.

That’s Abdelfattah Mourou from the moderate Islamist Ennahdha party, running to replace 92-year-old president Beji Caid Essebsi who died in July. Mourou’s part of a dizzying lineup of presidential hopefuls, including two women. Among them: government ministers, far left politicians and jailed media tycoon Nabil Karoui. A runoff vote is expected, following next month’s legislative elections.

Zohra Goummid voted for Prime Minister Youssef Chahed. “He’s got experience, he’s young,’ she says. ‘We Tunisians know him well. The other candidates are just upstarts,” she said.

But with Tunisia’s economy sputtering and unemployment high, others are looking for new faces, outside the political establishment.

Retired professor Mohammed Sami Neffati voted for a friend of his: 61-year-old law expert Kais Saied, who opted for door-to-door campaigning instead of large rallies. He isn’t eloquent, Neffati says, but he’s got a chance, because he’s honest.

But other Tunisians stayed home, disappointed about the state of their country — and skeptical that any of the candidates can turn things around.

 

Somalia: Al-Shabab Attacks Kill 17

The al-Shabab militant group launched a series of attacks since Saturday that led to the death of at least 17 people in Somalia.

Lower Shabelle region officials told VOA Somali that the militants attacked the town of Qoryoley late Saturday using rocket propelled grenades and heavy machine guns, killing nine people.

The town’s Mayor Sayid Ali Ibrajim told VOA that an RPG fired by the militants caused most of the casualties.

Somali government forces with support from African Union forces, who are based outside the town, repelled the attack, according to officials.

Some of the residents in Qoryoley alleged that heavy weapons fired by AU troops caused some of the civilians casualties.

The Governor of the region Ibrahim Adan Najah told VOA Somali that they are investigating the allegations. AMISOM forces did not immediately respond to the allegations.

Also in Lower Shabelle region on Saturday, two civilians were killed after al-Shabab militants fired mortars on the ancient port town of Marka during a visit by the Prime Minister of Somalia Hassan Ai Khaire.

Al-Shabab claimed they were targeting the prime minister but the Governor Najah told VOA Somali that the incident took place outside the town. Residents and security sources said one of the mortars landed in a residential area killing two women. The prime minister was unharmed and has returned to Mogadishu safely.

Governor Najah himself was attacked on Sunday after his convoy was targeted with a remote-controlled explosion while travelling in an agricultural area near the town of Shalanbod, about 20 kilometers south of Qoryoley town. According to security sources, two bodyguards were killed and four others were injured including two junior regional officials.

In the neighboring Middle Shabelle region, al-Shabab carried out a roadside explosion that killed four regional officials and injured six others on Saturday. Among the dead was Abdullahi Shitawe, deputy governor for finances, Sabrie Osman a former regional deputy minister for business, and businessman Hassan Baldos. A fourth person said to be a bodyguard was also killed. They were travelling on a road in the north of the agricultural town of Bal’ad, about 40 kilometers north of Mogadishu.