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Thursday 14th of April 2016 |
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Russia jets make 'simulated attack' passes near U.S. destroyer: U.S. @Reuters Law & Politics |
Two Russian warplanes flew simulated attack passes near a U.S. guided missile destroyer in the Baltic Sea on Tuesday, the U.S. military said, with one official describing them as one of the most aggressive interactions in recent memory.
The repeated flights by the Sukhoi SU-24 warplanes, which also flew near the ship a day earlier, were so close they created wake in the water, with 11 passes, the official said on Wednesday. The planes carried no visible weaponry, the official said.
A Russian KA-27 Helix helicopter also made seven passes around the USS Donald Cook, taking pictures. The nearest Russian territory was about 70 nautical miles away in its enclave of Kaliningrad, which sits between Lithuania and Poland.
"They tried to raise them (the Russian aircraft) on the radio but they did not answer," the official said, speaking on condition of anonymity, adding the U.S. ship was in international waters.
The events were reminiscent of the Cold War, when a series of close calls led to a bilateral agreement aimed at avoiding dangerous interactions at sea that was signed in 1972 by then-Secretary of the Navy John Warner and Soviet Admiral Sergei Gorshkov.
The agreement prohibited "simulated attacks against aircraft or ships, performing aerobatics over ships, or dropping hazardous objects near them." The accord can be seen here: www.state.gov/t/isn/4791.htm
The incident came as NATO plans its biggest build-up in eastern Europe since the Cold War to counter what the alliance, and in particular the three Baltic states and Poland, consider to be a more aggressive Russia.
The Baltic states, Estonia, Latvia and Lithuania, which joined both NATO and the European Union in 2004, have asked NATO for a permanent presence of battalion-sized deployments of allied troops in each of their territories. A NATO battalion typically consists of 300 to 800 troops.
Moscow denies any intention to attack the Baltic states.
"We cannot treat this as anything else than provocation, yet another example of aggressive intentions towards NATO, towards the United States, towards Poland," Poland's Defense Minister Antoni Macierewicz told private radio RMF.
The USS Donald Cook had just wrapped up a port visit in the Polish city of Gdynia on April 11 and proceeded out to sea with a Polish helicopter on board.
The first incident took place on April 11, when two SU-24 jets flew about 20 passes near the Donald Cook, coming within 1,000 yards (meters) of the ship, at about 100 feet (30 meters) in altitude.
That was followed by even closer passes by the SU-24s the following day and the passes by the Russian helicopter.
Conclusions
Russia remains very much on the Front Foot. They have reset Syria. Show-boated some spectacular military hard-ware gains. I think the real Challenge to the US comes from China and that because of a Bureaucracy that was brought up on the Cold War and the Big Bad Bear, the US is losing its focus on the Panda, by continuing in this Russia Groundhog type attitude.
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Carter to Visit Philippine Base Near Disputed Spratly Islands Law & Politics |
U.S. Secretary of Defense Ash Carter is in Manila amid tensions between the Philippines and China over Chinese militarization of features in the South China Sea.
Carter’s arrival Wednesday follows approval by the Philippines’ Supreme Court of a new agreement between Washington and Manila to allow U.S. rotational military forces on Filipino bases spread across the archipelago.
“I wanted to come here as soon as possible after that to signify the importance of that to us and the alliance,” Carter told reporters en route to Manila Wednesday.
Conclusions
I do not think 1 versus 2 is a serious idea at this moment. The US is currently triangulated between China and Russia.
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Singapore Surprise Policy Easing Spurs Asia-Wide Currency Rout @business World Currencies |
Singapore’s dollar slumped the most since August, dragging down other Asia-Pacific currencies, as surprise easing by the central bank fueled speculation other policy makers in the region will follow suit.
New Zealand’s dollar, Malaysia’s ringgit and Indonesia’s rupiah also weakened after the Monetary Authority of Singapore said it would seek a policy of zero appreciation against an undisclosed basket of currencies, returning to a neutral stance it adopted in the global financial crisis in 2008. Singapore’s central bank cited “a less favorable external environment” in its policy statement, adding to concern the outlook for global growth is worsening.
“Today’s decision by the Monetary Authority of Singapore has put downward pressure on currencies in the Asia-Pacific region," said Hirofumi Suzuki, an economist at the treasury department of Sumitomo Mitsui Banking Corp. in Singapore. “Some market participants fear a revival of a competitive currency devaluation."
Singapore’s dollar slid 1.2 percent to S$1.3667 to the U.S. currency as of 6:51 a.m. in London, the biggest drop since Aug. 11. New Zealand’s dollar tumbled 1.2 percent to 68.38 U.S. cents, the ringgit declined 0.9 percent to 3.9088 per dollar and Indonesia’s rupiah weakened 0.4 percent to 13,210.
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.@Nestle Sales Beat Estimates on Nescafe, Nespresso Coffee @business International Trade |
Nestle SA, the world’s biggest food company, reported first-quarter sales that beat analysts’ estimates, as Nescafe and Nespresso were boosted by marketing to ward off competitors in coffee.
Sales rose 3.9 percent on an organic basis, the Vevey, Switzerland-based maker of KitKat bars and Perrier water said in a statement Thursday. Analysts had expected 3.6 percent, according to the median estimate in a Bloomberg survey. Nestle expects “further momentum” in the second half, Chief Financial Officer Francois-Xavier Roger said on a call with analysts.
Nestle’s world-leading coffee business faces a fresh challenge from JAB Holding Co., which has spent more than $30 billion acquiring assets like Keurig Green Mountain Inc., the maker of the U.S.’s most popular single-serve coffee system. Nestle’s revenue from powdered and liquid beverages -- predominantly the coffee business -- rose 6.3 percent. That was boosted by advertising and promotions, according to Jon Cox, an analyst at Kepler Cheuvreux in Zurich.
“Nestle invested money into marketing in the fourth quarter, which actually dampened group margin in 2015, but is now paying off,” Cox said. “It’s taking advantage of the uncertain situation among competitors in coffee amid JAB’s rapid acquisitions of multiple businesses.”
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South Sudan: Rebel Deputy Returns to Capital As Part of a Peace Deal DW Africa |
The deputy chief of South Sudan's rebels has returned to the capital, Juba, as part of a peace deal. The main opposition leader, Riek Machar, is also expected to return to the capital to work out a unity government.
South Sudan's rebel deputy chief returned to Juba as part of the peace deal signed in August 2015, despite repeated ceasefire violations by both sides.
Alfred Ladu Gore, a former general and minister, spoke about peace upon arrival, saying he: "came here to proclaim peace and I have come to reaffirm that peace will not be reversed."
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How liberators turn into oppressors - a study of southern African states Henning Melber Africa |
Since coming to political power, the anticolonial movements of Angola, Mozambique, Zimbabwe, Namibia and South Africa have remained in control of the former settler colonies’ societies.
At best their track record of running the countries they helped liberate is mixed. From the “oiligarchy” in Angola under José Eduardo dos Santos and his family clan and the autocratic “Zanufication” under Zimbabwean President Robert Mugabe to the presidential successions in Mozambique, Namibia and South Africa, all movements embarked on what could be termed “state capture”.
This is true of all five: the People’s Movement for the Liberation of Angola (MPLA), the Mozambique Liberation Front (Frelimo), the Zimbabwe African National Union (ZANU PF), Namibia’s South West Africa People’s Organisation (SWAPO) and the African National Congress (ANC) in South Africa.
During the years of organised resistance, activists in the liberation movements often internalised a “we-they” divide that categorised people as comrades or enemies. This was true in exile politics and armed struggle, as well as militant internal underground mobilisation.
The repressive regimes the liberation movements opposed were based on human rights violations as an integral component of minority rule. To have a chance of success against them, the struggle mainly operated along the lines of command and obedience. Operating in exile or for a banned organisation at home left no room for complacency. Suspicion was required for survival. It is normal for resistance movements to adopt rough survival strategies and techniques while fighting an oppressive regime.
Unfortunately that culture takes root and is permanently nurtured.
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Angola Should Ease Forex Law to Help Oil Sector, TGI Says Africa |
Angola should lift restrictions on foreign-currency transactions to help ease the struggles of oil companies that have been hit by the sharp drop in crude prices, according to Alex Thomson-Payan, founder of investment company TGI Group.
A law from 2012 requires companies in Angola to pay suppliers and salaries in the local kwanza currency, while last year the central bank ordered businesses and citizens to cut foreign-exchange use by 50 percent amid a dollar shortage.
The oil-price slump has hammered Angola, Africa’s largest crude producer after Nigeria, which relies on the fuel to generate about 70 percent of revenue and 95 percent of export income. The kwanza has lost 19 percent against the dollar this year, while Standard & Poor’s cut the southern African nation’s credit rating by one notch to B, five levels below investment grade, in February.
When foreign-currency controls were announced, the government wanted “to boost the local market, making the kwanza more valuable, diversifying the economy,” Thomson-Payan said in an interview in the capital, Luanda. “But now there is an oil crisis and the law is hampering the only sector generating foreign currency.”
Economic growth in Angola will probably slow to 2.5 percent this year, from 3 percent in 2015, the International Monetary Fund says in its World Economic Outlook on Tuesday. The economy is forecast to expand 2.7 percent in 2017.
Growth in Angola and other crude exporters will slow “as the negative impact of lower oil prices is compounded by disruptions to private-sector activity through exchange-rate restrictions,” the IMF said.
Angola-based TGI Group’s investment portfolio includes oil, mining, telecommunications, real estate and financial services, and it helps international companies starting operations in the country. “If the law is changed, I think the level of investment will be incredible,” said Thomson-Payan.
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Deafening Silence from Ethiopia FPIF Africa |
Since November, state security forces have killed hundreds of protesters and arrested thousands in Oromia, Ethiopia’s largest region. It’s the biggest political crisis to hit the country since the 2005 election but has barely registered internationally. And with the protests now in their fifth month, there is an almost complete information blackout.
A teacher arrested in December told me, “In Oromia the world doesn’t know what happens for months, years or ever. No one ever comes to speak to us, and we don’t know where to find those who will listen to our stories.”
Part of the problem is the government’s draconian restrictions on news reporting, human rights monitoring, and access to information imposed over the past decade. But restrictions have worsened in the last month. Some social media sites have been blocked, and in early March security officials detained two international journalists overnight while they were trying to report on the protests. As one foreign diplomat told me, “It’s like a black hole, we have no idea what is happening. We get very little credible information.”
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Taiwanese deported from Kenya 'suspected of fraud in China' Kenyan Economy |
A group of Taiwanese deported from Kenya to China after being acquitted of cyber crime are wanted for suspected fraud in China, the Chinese government said on Wednesday.
In a case that has enraged Taiwan, which has accused Beijing of kidnap, the Kenyan government said the people were in Kenya illegally and were being sent back to where they had come from.
Kenya does not have official relations with democratic Taiwan and considers the island part of "one China", in line with the position of Communist Party leaders in Beijing.
Only 22 countries recognize Taiwan as the Republic of China, with most, including Kenya, having diplomatic relations with the People's Republic of China, with its leaders in Beijing.
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ICC failure 'spells doom' Raila Odinga @AFP via Times LIVE Kenyan Economy |
The ICC's failure to try top Kenyan leaders for crimes against humanity in the country's worst violence since independence spells "doom" for global efforts to fight impunity, former Kenyan leader Raila Odinga said.
Despite this setback, African countries must not quit the International Criminal Court as the continent is "the biggest violator currently of human rights", the ex-prime minister said.
War crimes judges dropped cases against Kenyan President Uhuru Kenyatta at the end of 2014, and against Deputy President William Ruto last week.
More than 1300 people died and about 600000 others were left homeless after disputed elections in 2007 in Kenya's worst wave of violence since independence from Britain in 1963.
But the ICC said it was forced to declare the defendants had no case to answer because of a "relentless" campaign of witness intimidation as well as Nairobi's refusal to co-operate, a charge that Kenya denies.
"This decision spells doom for the international justice system and fight against impunity," Odinga - who was declared the runner-up in the 2007 vote - said during a visit to Paris.
Now, he regretted: "No African head of state needs to fear being tried by the ICC because you can destroy the evidence, you can kill witnesses''
"The ICC allowed itself to be blackmailed by Kenya," said Odinga, 71.
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From Business Daily How Deloitte's Islamic assets audit row caused a run on Chase Bank Kenyanwallstreet Kenyan Economy |
Sharp differences between senior managers of Chase Bank and auditing firm Deloitte on how to handle assets in the lender’s possession under the Islamic banking window triggered a rapid-fire series of events that led to the bank’s collapse. The Business Daily has reliably learned that the outcome of the two-week audit row is what pushed the SME-focused bank over the cliff, leading to its closure on April 7. Chase Bank found itself in a tight position after the Central Bank of Kenya (CBK) directed it to restate its financial results to show the significant changes in its insider lending position that arose from the differences over the method of accounting for the lender’s Islamic banking assets. Chase Bank’s restated figures showed it had under-reported insider loans by a whopping Sh8 billion, casting doubts over the financial health of the lender, which also reported a surprise Sh743 million loss. The bank’s former group managing director, Duncan Kabui, last week told criminal investigators that Deloitte was yet to complete its audit of the bank and submit a report to the board as is standard practice when the restated financial results were published on April 6. “The final audit report does not exist and has not been completed. The bank’s auditors have not submitted the audit report to the board’s audit and risk committee for discussion and approval and to the full board as is practice,” Mr Kabui told investigators — raising questions as to the basis of the CBK’s action against the bank. The CBK moved in to take charge of Chase Bank last Thursday — a day after Mr Kabui and Zafrullah Khan, the bank’s chairman, were forced out following revelations of massive irregular insider lending that precipitated a run on the bank. The CBK said Chase Bank had experienced liquidity difficulties that rendered it incapable of meeting its financial obligations on April 6. Mr Kabui says in his statement to the police that the so-called insider loans were assets held in Chase Iman’s joint ventures financed under Musharakah – a sharia-compliant investment platform where partners are entitled to a share of profits in a ratio that is mutually agreed. Mr Kibui says it was Deloitte’s aboutturn on how to treat those assets that led to their classification as insider loans that caused panic in the market and led to massive withdrawal of deposits that ultimately sunk the bank An exchange of emails between Chase Bank executives and Deloitte shows that sharp differences emerged over the classification of assets from Chase Bank’s Islamic window. “During the course of the audit and inexplicably the auditor changed his interpretation of these assets to loans to related parties. The auditor claimed lack of technical capacity to understand Islamic contracts yet it had been handling the bank for more than 18 years,” said Mr Kabui. An earlier draft of Chase Bank’s financials prepared by Deloitte shows that the disputed Sh7.9 billion was classified as ‘other assets and interest receivable’ in the balance sheet only to emerge in the restated financial statement as loans advanced to an unnamed director and associated companies. The exchange of emails show that Fredrick Aloo, an audit partner at Deloitte in charge of Chase Bank’s account, surprised the bank’s executives with his demand that the Islamic assets held in special purpose vehicles (SPVs) be charged for purposes of proper accounting. Chase Bank, responding through its head of legal, Sevastone Makanda, warned of the danger of charging the assets, saying the action would turn them into loans that would then have to be provided for. Mr Makanda further warned that registering a charge on the properties and turning into loans would run afoul of Islamic financing. “The bank will become a lender and the special purpose vehicles (SPVs) borrowers obligated to make monthly repayments plus interest which will be in breach of the existing obligations, ownership,” Mr Makanda said in an email dated March 14, 2016. Mr Aloo rejected Mr Makanda’s proposals through an email dated March 24, 2016, insisting that he had sought independent counsel from a lawyer and a banker and that he had come to the conclusion that the proposed trust deed for the SPVs would not suffice. Mr Makanda had proposed that Chase Bank creates long-term leases over the properties receiving sharia-compliant financing as a strategy to register the bank’s interests. The list of assets held under the SPVs included a business park in Karen, a threeacre parking lot in Nairobi, some 240 acres of land on Mombasa Road, a three-acre plot next to the German Embassy in Riverside Drive and various properties in Dubai. Mr Kibui told the police that he did not understand the auditor’s sudden demand for a change in treatment of the Islamic assets insisting that they were fully charged to the bank. “Even in this auditor’s midway change of accounting treatment, the properties were either fully charged to the bank or pending charging where the new titles were being processed,” he said. Deloitte’s statement of account, dated March 16, 2016, shows the auditors had suppressed Chase Bank’s loan loss provisions at Sh527 million, resulting in a net profit of Sh2.6 billion. But after the change in treat ment of the Islamic assets, Chase Bank was forced to increase its loan impairment costs nearly threefold to Sh2.09 billion from Sh757 million in 2014, a move that wiped out the lender’s earnings. Deloitte did not respond to questions on its audit actions citing customer confidentiality rules and that the responses may prejudice ongoing investigations. “The matter is under investigation and therefore we cannot comment on this. We are bound by client confidentiality and therefore we cannot respond to this,” said Sammy Onyango, the chief executive at Deloitte East Africa. Mr Kabui disclosed that the SPVs, where he is a director, were formed to capture the letter and spirit of Musharakah and that he only held the position in trust for the bank. “It is not true that I advanced to myself the said loans as these were mere auditor-induced adjustments from previous years when they treated the properties correctly as investments,” he said. Dr Njoroge last week said the Sh7.9 billion associated with the Islamic assets were irregularly lent to an unnamed Chase Bank director, raising questions as to the regulator’s dealings with commercial banks that are licensed to offer Islamic products. It was the disagreement over the treatment of Islamic assets that saw Deloitte make a U-turn to issue Chase Bank a qualified audit opinion and a surprise full-year loss from an earlier unqualified position where the lender was in the profit zone. The restatement of the financial results was done in response to the CBK directive that set in motion a chain reaction that finally resulted in a run on the bank. “The errors noted were there was no mention of a bank’s auditors and whether the auditors issued a qualified or unqualified opinion,” said CBK director of bank supervision Gerald Nyaoma in a leaked letter dated April 4, 2016. “The purpose of this letter therefore is to direct the institution (Chase Bank) to republish its audited financial statements and disclosures as at December 31, 2015.”
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