Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Trump Approval Ratings at Around 30 Percent, President Says They’re Wrong

An array of surveys of voter approval ratings for U.S. President Donald Trump continue to be mired in the 30 percent range, but he contended Tuesday that an outlier poll with a higher mark proves the others are wrong.

The latest survey by Quinnipiac University showed American voters disapprove of Trump’s nearly 10-month White House tenure by a 58-to-35 percent margin, with 40 percent saying he is fit to serve as president and 57 percent he is not.

Other recent surveys showed similar results, with Gallup on Tuesday giving Trump a 57-38 disapproval rating. Last week, Reuters/Ipsos pegged his negative standing at 60-35, while The Washington Post-ABC News survey in early October showed a negative reading of 59-37, which it said was the lowest in seven decades at this point in the four-year terms of U.S. presidents.

However, Trump, in a Twitter comment, cited Monday’s result from the Republican-leaning Rasmussen Reports, which showed him at a 53-46 negative standing and attacked mainstream national news outlets for citing the polls with his approval ratings in the 30-percent range.

“One of the most accurate polls last time around,” Trump said of Rasmussen. “But #FakeNews likes to say we’re in the 30’s. They are wrong. Some people think numbers could be in the 50’s. Together, WE will MAKE AMERICA GREAT AGAIN!”

By Tuesday, the Rasmussen polling edged down for Trump, with a 54-44 negative reading.

Quinnipiac pollster Tim Malloy said, “President Donald Trump returns from his big Asia trip to find numbers frozen in the negative. Ominously, there is creeping slippage in (Trump’s political) base.”

Quinnipiac said that American voters by a 58-to-37-percent margin think that Trump is not honest, by 59-38 that he does not have good leadership skills, by 59-39 that he does not care about average Americans, by 65-30 that he is not level-headed and by 62-34 that he does not share their values.

On the plus side, Quinnipiac said by a 58-39 margin, voters think Trump is a strong person and by 55-41 that he is intelligent.

Study: Internet Freedom Worsens in Pakistan

A new independent study places Pakistan among the top four countries, including Brazil, Mexico and Syria, where people have been murdered in each of the last three years for writing about sensitive subjects online.

The annual “Freedom on the Net” report, released Tuesday by U.S.-based Freedom House, is based on an assessment of internet freedom in 65 countries, accounting for 87 percent of internet users worldwide. The latest study primarily focused on developments between June 2016 and May 2017.

The research declared Pakistan “not free” for a sixth consecutive year, noting internet freedom has deteriorated due to violence and intimidation related to social media activists.

“Internet shutdowns, a problematic cybercrime law, and cyberattacks against government critics contributed to the ongoing deterioration. Political speech online is vulnerable to restriction as Pakistan enters an election year in 2018,” the report noted.

The most frequent targets, it says, seem to be online journalists and bloggers covering politics, corruption and crime, as well as people who express religious views that may contrast with or challenge the views of the majority.

The study went on to conclude that perpetrators of the reprisal attacks remained unknown “but their actions often aligned with the interests of politically powerful individuals or entities.”

The report documented incidents of violence and intimidation during the research period. The government of Pakistan has not commented on the findings.

In June, a Pakistani court sentenced to death earlier this year an internet user, Taimoor Raza, for committing blasphemy on Facebook. In April, university student Mashal Khan was killed in the northwestern Khyber Pakhtunkhwa province by a mob who accused him of posting blasphemous content online.

Khan’s murder sparked widespread outrage across Pakistan. An anti-terrorism court is hearing the lynching case against 57 suspects indicated by the court.

“Such attacks often succeed in silencing more than just the victim, encouraging wider self-censorship on sensitive issues like religion. The state’s failure to punish perpetrators of reprisal attacks for online speech perpetuates a cycle of impunity,” according to the report.

The Pakistani government enacted the Prevention of Electronic Crimes Act in August 2016, introducing stronger censorship and surveillance powers with inadequate oversight, say critics.

Earlier this year, five bloggers known for criticizing the powerful military and religious militancy were abducted for few weeks. One of them later told media a government institution had detained and tortured him. Authorities had distanced themselves from the alleged abductions.

Tuesday’s report also criticized the government for the prolonged suspension of mobile internet services in parts of Pakistan, including the violence-plagued northwestern federally administered tribal areas, where security forces have been conducting anti-militancy operations.

About 15 Percent of US Federal Agencies Detected Kaspersky on Networks

About 15 percent of U.S. federal agencies have reported some trace of Moscow-based Kaspersky Lab software on their systems, a Department of Homeland Security (DHS) official told Congress on Tuesday.

Jeanette Manfra, assistant secretary for cybersecurity at DHS, told a U.S. House of Representatives panel that 94 percent of agencies had responded to a directive ordering them to survey their networks to identify any use of Kaspersky Lab products.

The Trump administration in September ordered civilian U.S. agencies to remove Kaspersky Lab from their networks, saying it was concerned the Moscow-based cybersecurity firm was vulnerable to Kremlin influence and that using its anti-virus software could jeopardize national security.

Kaspersky Lab has repeatedly denied the allegations.

Reporting by Dustin Volz; Editing by Chizu Nomiyama.

Silicon Valley Blasts US Senate Proposal to Tax Startup Options

A proposal by the U.S. Senate to change the way shares in startup companies are taxed incited panic and dread in Silicon Valley on Monday, with startup founders and investors warning of nothing less than the demise of their industry should the proposal become law.

The provision in the Senate’s tax reform plan, which appeared to catch the industry by surprise, involves the treatment of employee stock options. These options give the holder the right to purchase shares in the future at a set price and can be very valuable if a company does well and the share price increases.

Options are often a major portion of the compensation for startup employees and founders, who take lower salaries in anticipation of a big payout if their startup takes off. Options typically vest over a four-year period.

Senate Republicans have now proposed taxing those stock options as they vest and before startup employees have the opportunity to cash them in, resulting in annual tax bills that could easily climb into the tens of thousands of dollars, say startup founders and venture capitalists.

“If there were a single piece of legislation to adversely affect startups, it would be this,” said Venky Ganesan, managing director at venture capital firm Menlo Ventures. “Everyone is freaked out.”

Justin Field, vice president of government affairs at the National Venture Capital Association, said that the Senate’s proposed tax change would be “crippling” to the startup industry.

How far the provision gets remains to be seen. The National Venture Capital Association was successful in getting a similar proposal removed from the House tax bill, although it “didn’t fully appreciate” the Senate’s intention to add the tax provision, Field said.

The association also helped to steer lawmakers away from a proposal discussed late last year to tax venture capitalists’ profits on investments at a higher rate.

Republican Senator Rob Portman of Ohio, a member of the Senate Committee on Finance, has filed an amendment to repeal the provision in the tax bill, according to his spokesman.

A new proposal

Under current tax code, employees are taxed only when they exercise their options. Options are exercised when the price they were granted at–known as the strike price–is lower than the share price, and some shares can then be sold to pay the taxes.

But the Senate proposal would require startup employees to pay regular income tax on the value gain of their stock options even before they are exercised. These options are illiquid assets, and cannot be spent or saved.

“What this would mean is every month, when your equity compensation vests a little bit, you will owe taxes on it even though you can’t do anything with that equity compensation,” Fred Wilson, a venture capitalist with Union Square Ventures, wrote on his blog Monday.

For instance, if a startup employee receives stock options at a dollar per share, and the shares increase in value by $1 every year during the four-year vesting period, the employee would have to pay income tax on $1 per share after the first year, pay again on the $1 increase in value after the second year, and so on.

When that employee owns hundreds of thousands and even millions of shares, that is a hefty bill to pay. And there is always the risk the startup will eventually fail.

“This reform will force the average employee to pay taxes on that bet well before they even know if it’s a winning ticket,” said Amanda Kahlow, founder and executive chairman of marketing data startup 6sense.

For startup founders in particular, such a tax bill could be ruinous.

“It would mean that I would have to sell the company,” said Shoaib Makani, founder and chief executive of long-haul trucking startup KeepTruckin. “I have zero net worth aside from the common stock I hold in the company. It would be impossible. I would be in default.”

Some executives in the startup industry, however, have pushed for companies to move toward bigger salaries so employees are not so dependent on options to buy a house or pay for other large expenses. And when startups suffer valuation cuts, employees can end up with worthless options.

The Senate’s proposal came as a revenue-generating measure to help offset tax breaks in the bill. A spokesman for Senator Orrin Hatch, a Republican and chairman of the Senate Committee on Finance, did not respond to requests for comment and other Republicans on the committee were not immediately available.

A spokeswoman for Senator Ron Wyden, the committee’s ranking member and a Democrat, said he was aware of concerns that the provision would limit startups’ ability to attract talent.

New Russia Probe Details Likely to Dominate Sessions Hearing

Attorney General Jeff Sessions returns to Capitol Hill this week amid growing evidence of contacts between Russians and associates of President Donald Trump, bracing for an onslaught of lawmaker questions about how much he knew of that outreach during last year’s White House campaign.

The appearance before the House Judiciary Committee on Tuesday follows a guilty plea from one Trump campaign aide who served on a foreign policy council that Sessions chaired, as well as statements from another adviser who said he’d advised the then-GOP Alabama senator about an upcoming trip to Russia.

Those details complicate Sessions’ effort to downplay knowledge of the campaign’s foreign contacts, and Democratic lawmakers who already contended the attorney general had not been forthcoming with them have signaled that questions about the new revelations are likely to dominate what could otherwise have been a routine oversight hearing.

“These facts appear to contradict your sworn testimony on several occasions,” Democrats from the committee said in a letter to Sessions last week.

Republicans, for their part, are likely to press Sessions on their demands for investigations into the Clinton Foundation and an Obama-era purchase of American uranium mines by a Russian-backed company.

In a letter to the House Judiciary Committee, the Justice Department said Sessions had directed “senior federal prosecutors” to “evaluate certain issues” raised in letters sent by Republican lawmakers, and to determine whether investigations – or the possible appointment of a special counsel – were warranted. 

Sessions, an early Trump backer who led a foreign policy advisory council during the campaign, has been shadowed for months by questions about his own communications with Russians and by contacts of others in the Trump orbit. That issue has been at the forefront of each of his congressional hearings even as Sessions has labored to promote the Justice Department’s work and priorities, and Tuesday’s appearance is unlikely to be an exception.

Earlier in the year

At his January confirmation hearing, Sessions told Sen. Al Franken, D-Minn., that “I did not have communications” with the Russians during the campaign and said he was “unaware” of contacts between others in the campaign and Russia. Yet he recused himself in March from overseeing the Justice Department’s investigation into potential coordination between the Trump campaign and the Kremlin after acknowledging two previously undisclosed encounters with Russian ambassador Sergey Kislyak.

He struck a similar note before the Senate Judiciary Committee last month, when he denied knowledge of communications between Russians and Trump campaign officials.

“I did not and I’m not aware of anyone else that did, and I don’t believe it happened,” Sessions said under questioning, again from Franken.

But that narrative has been challenged by a pair of recent events, most notably a guilty plea from George Papadopoulos, who last month admitted in court to lying to the FBI about his own foreign contacts. He was part of a foreign policy council that Sessions chaired, and the two are among the men in a March 2016 photograph that Trump posted on social media. Charging documents in that case indicate that Papadopoulos told the council “that he had connections that could help arrange a meeting between then-candidate Trump” and Russian President Vladimir Putin.

One of the attendees at that meeting, J.D. Gordon, recalled that Sessions quickly “shut him down and said, ‘We’re not going to do that.”’

Gordon has also said that Papadopoulos went around him and Sessions and that they did not know he had continued to try to arrange such a meeting.

Democratic members of the House Judiciary Committee advised Sessions in a letter last week that they intended to press him on what they said were “inconsistencies” between the attorney general’s past statements and the new revelations.

“If, as recent reports suggest, you rejected Mr. Papadopoulos’s suggestion that President Trump meet with Vladimir Putin at that March 31 meeting – a fact you appear to have remembered only after Mr. Papadopoulos’s account was made public – it seems likely that you were ‘aware’ of communications between the Russian government and surrogates of the Trump campaign,” the letter states.

Justice Department spokeswoman Sarah Isgur Flores declined to comment Monday.

Adding to the questions for Sessions was the release by the House Intelligence Committee last week of a transcript of a private interview with Carter Page, a former foreign policy adviser to the campaign who acknowledged that he had contact with a high-level Russian official while on a trip to Russia last year.

Page told the panel he had informed some members of the Trump campaign about the trip, including Sessions. He said he mentioned in passing to Sessions that he was preparing to visit Russia and Sessions “had no reaction whatsoever.”

Shrinking GE Rattles Investors, Shares Hit 5-year Low

General Electric’s new Chief Executive John Flannery on Monday outlined steps that will turn the biggest U.S. industrial conglomerate into a smaller, more focused company, surprising some investors who sold the company’s shares to a five-year low.

Flannery’s plan to shrink GE’s multi-industry array of businesses was a reversal of the deal-driven empire building of his predecessors, Jeff Immelt and Jack Welch, and potentially a milestone in the decline of the conglomerate as a business strategy.

Other companies that once emulated the GE model of spreading bets among diverse industries are now unwinding their portfolios as well, something Immelt also did throughout his 16 years as CEO, even as he made acquisitions.

Flannery said he will pare GE down to three core businesses: power, aviation and healthcare. He will keep Immelt’s strategy of building software to complement GE’s machinery, albeit with a narrower focus and reduced budget.

For investors, Flannery’s decision to cut both the dividend and the 2018 earnings forecast by half added up to a whole that was less than they judged GE be worth last week.

GE shares fell to their lowest level in more than five years as investors worried the years-long overhaul would not pare down enough expenses or generate as much cash as they hoped. They closed off the day’s lows, down 7.2 percent to $19.02.

“They need to cut more cost,” said Scott Davis, an analyst at Melius Research. “GE is still a bloated company with duplicate costs up and down the organization.”

GE stock has effectively been dead money since September 2001, when Immelt took over, posting a negative total return even after reinvesting its juicy dividends. Once the most valuable U.S. publicly traded company, GE now has a market value of $168 billion, less than a fifth of Apple.

“You have pessimism around its portfolio of businesses mixed with a pretty harsh cut in the dividend,” said John Augustine, chief investment officer at Huntington Private Bank. “It took them years to get into this mess and it will take them several years to right the ship and get back into a stronger position.”

‘Soul of the Company’

Flannery, who took over as CEO on Aug. 1, said he was “looking for the soul of the company again” and would focus on “restoring the oxygen of cash and earnings to the company.”

He will cut its board to 12 from 18 members, and bring on three new directors early next year.

GE said it already has shed 25 percent of its corporate staff, meaning 1,500 jobs around the world, including some at its Boston headquarters. It is aiming to reduce overhead cost by $2 billion next year, half of that at its troubled power unit that sells electrical generation equipment.

The transition includes GE getting rid of at least $20 billion of assets through sales, spin-offs or other means.

GE will jettison businesses with “a very dispassionate eye,” Flannery said, keeping only units that offer growth, a leading market position and a large installed base.

GE said it would exit its lighting, transportation, industrial solutions and electrical grid businesses, all of which were widely expected, closing factories around the globe.

But it was vague about other disposals.

It plans to get rid of its 62.5-percent stake in oilfield services company Baker Hughes, only months after making the multi-billion dollar investment. Baker Hughes shares lost 3.2 percent.

Flannery offered no quick fixes for investors. He said power, one of the businesses GE would focus on, was “challenged,” but could be turned around in one to two years.

GE’s Digital unit, on which Immelt bet billions of dollars, would focus on selling apps to customers in its core businesses, Flannery said. He confirmed that the shift meant sales staff were being let go, as Reuters reported last week.

GE also will cut spending on the digital unit to $1.1 billion in 2018 from $1.5 billion in 2017. GE had previously said it would invest $2.1 billion in its digital unit in 2017, but that tally included money not tied to Predix, GE’s industrial-internet platform, GE said.

Flannery said there is “no retreat on the idea” of GE providing both applications and the Predix platform to connect industrial equipment to computers that can make machines run better. However, getting one of its key applications to run on Predix could take two more years.

Flannery added that some of its healthcare IT business, such as software for imaging and hospital staff scheduling, were still critical to the company and not likely to be divested.

Dividend Cut

The dividend cut, to 48 cents from 96 cents next year, is only the third in the company’s 125-year history and the first not during a broader financial crisis. It is expected to save about $4 billion in cash annually.

“This dividend cut will be a major disappointment to GE’s (roughly 40 percent) retail shareholder base,” said RBC Capital Markets analyst Deane Dray.

The cut will be the eighth-biggest dividend cut in history among S&P 500 companies, according to Howard Silverblatt, senior index analyst of S&P Dow Jones Indices. GE also had the biggest cut when it slashed its dividend by $8.87 billion in 2009, Silverblatt said.

GE forecast 2018 adjusted earnings of $1 to $1.07 a share, compared with its earlier estimate of $2 per share. Wall Street was expecting $1.16, according to Thomson Reuters I/B/E/S.

Industrial free cash flow will total just $6 billion to $7 billion next year, up from an estimated $3 billion in 2017, but far below earlier targets of $12 billion for 2017.

GE said the weak power business had largely prompted the dividend cut and lowered earnings forecast. Demand for new power plants will remain slow through 2019, Flannery predicted.

But GE also was to blame, he said.

“We did not manage the (power) business well,” he said. “That’s a fundamental change we need to make and that’s going to take some time. This is not a magic wand.”

North Korea Says US Carrier Groups Raise Nuclear War Threat

North Korea warned Monday that the unprecedented deployment of three U.S. aircraft carrier groups “taking up a strike posture” around the Korean peninsula is making it impossible to predict when nuclear war will break out.

North Korea’s U.N. ambassador, Ja Song Nam, said in a letter to Secretary-General Antonio Gutteres that the joint military exercises with South Korea are creating “the worst ever situation prevailing in and around the Korean peninsula.”

Along with the three carrier groups, he said, the U.S. has reactivated round-the-clock sorties with nuclear-capable B-52 strategic bombers “which existed during the Cold War times.”

He also said the U.S. is maintaining “a surprise strike posture with frequent flights of B-1B and B-2 formations to the airspace of South Korea.”

“The large-scale nuclear war exercises and blackmails, which the U.S. staged for a whole year without a break in collaboration with its followers to stifle our republic, make one conclude that the option we have taken was the right one and we should go along the way to the last,” Ja said.

He didn’t elaborate on what “the last” might be, but North Korea has launched ballistic missiles that have the potential to strike the U.S. mainland, and it recently conducted its largest-ever underground nuclear explosion. It has also threatened to explode another nuclear bomb above the Pacific Ocean.

The four-day joint naval exercises by the U.S. and South Korea, which began Saturday in waters off the South’s eastern coast, were described by military officials as a clear warning to North Korea. They involve the carrier battle groups of the USS Ronald Reagan, Theodore Roosevelt and Nimitz, which include 11 U.S. Aegis ships that can track missiles, and seven South Korean naval vessels.

Seoul’s military said in a statement that the exercises aim to enhance the combined U.S. and South Korean operational and aerial strike capabilities and to display “strong will and firm military readiness to defeat any provocation by North Korea with dominant force in the event of crisis.”

According to the U.S. Navy’s 7th Fleet, it is the first time since a 2007 exercise near Guam that three U.S. carrier strike groups have operated together in the western Pacific.

U.S. Defense Secretary Jim Mattis insisted on Monday that the carrier maneuvers are not extraordinary.

“There’s no big message” intended for North Korea or anyone else, he told reporters in an impromptu exchange in a Pentagon hallway. “This is what we normally do with allies.”

Reminded that it had been 10 years since the last three-carrier exercise, Mattis noted that the Navy has a limited number of carriers and can’t often put three in the same place.

“It’s just a normal operation,” he said.

The military drills come amid U.S. President Donald Trump’s visit to Asia, which has been dominated by discussions over the North Korean nuclear threat.

Ja accused the U.N. Security Council in Monday’s letter of repeatedly “turning a blind eye to the nuclear war exercises of the United States, who is hell bent on bringing a catastrophic disaster to humanity.” He said the exercises raise serious concern about “the double standard” of the U.N.’s most powerful body.

He also referenced Trump’s September speech to the U.N. General Assembly in which the president said that if the U.S. is “forced to defend itself or its allies, we will have no choice but to totally destroy North Korea.”

Trump tweeted soon after making the speech that Korea’s leadership “won’t be around much longer” if it continued its provocations, a declaration that led the North’s foreign minister to assert that Trump had “declared war on our country.”

Ja said Monday the U.S. “is now running amok for war exercises by introducing nuclear war equipment in and around the Korean peninsula, thereby proving that the U.S. itself is the major offender of the escalation of tension and undermining of the peace.”’

Ja asked Guterres to circulate the letter to the Security Council and the General Assembly, and also asked him to use his power under Article 99 of the U.N. Charter to bring to the Security Council’s attention “the danger being posed by the U.S. nuclear war exercises which are clearly threats to international peace and security.”

Mexico Readying Economic Response if US Exits NAFTA

Mexico’s government is preparing a macroeconomic response in case U.S. President Donald Trump makes good on threats to quit the North American Free Trade Agreement (NAFTA), an event which could wreak havoc on the Mexican economy and hurt the peso.

Mexico’s Foreign Minister Luis Videgaray said on Monday the government and central bank were preparing a plan to address the possibility of a future without NAFTA, but gave few details.

The government has said it is examining how it could adjust Mexican legislation to give investors certainty about their investments if the almost 24-year-old NAFTA collapses.

Underpinning some $1.3 trillion in annual trade between the United States, Canada and Mexico, NAFTA has been a central pillar of recent Mexican economic development. Nearly 80 percent of Mexican exports are shipped to the United States.

Trade negotiators from the United States, Mexico and Canada meet in Mexico City this week to continue talks on overhauling the accord, and Videgaray reiterated the government’s position that the expectation was that talks would ultimately succeed.

Mexico would continue to work on diversifying trade, protect foreign investment, review possible changes to tariff barriers, and prepare a macro-economic response from the finance ministry and the central bank, Videgaray added.

“These are the four lines a plan B must include,” he told Mexican radio. “We have to be prepared for all the scenarios and one of the scenarios is that the United States leaves the treaty, and as we have said, that is not the end of the world, the Mexican economy is much bigger than NAFTA.”

Separately, the International Monetary Fund said in a report on Monday that ending NAFTA would bring back World Trade Organization “most-favored nation” tariffs, which would disrupt Mexican-U.S. trade, and could crimp economic growth, dampen capital inflows and raise risk premia.

The IMF suggested that among various policy responses at Mexico’s disposal, “temporary foreign exchange interventions and liquidity provision could help smooth extreme volatility.”

Concerns that Trump could follow through on his threats to dump NAFTA have battered the Mexican peso in recent weeks.

Additionally, Mexico should continue to implement its structural reforms and boost efforts to diversify trading relationships, which would increase competitiveness and help economic growth over the medium-term, the IMF said.

The IMF sees Mexico’s economy growing 1.9 percent next year after projected expansion of 2.1 percent in 2017.

Bipartisan Analysis: Senate Bill Would Hike Taxes for 13.8 Million

Promoted as needed relief for the middle class, the Senate Republican tax overhaul would increase taxes for some 13.8 million moderate-income American households, a bipartisan analysis showed Monday.

The assessment by Congress’ nonpartisan Joint Committee on Taxation emerged as the Senate’s tax-writing committee began wading through the measure, working toward the first major revamp of the tax system in some 30 years.

Barging into the carefully calibrated work that House and Senate Republicans have done, President Donald Trump called for a steeper tax cut for wealthy Americans and pressed GOP leaders to add a contentious health care change to the already complex mix.

Trump’s latest tweet injected a dose of uncertainty into the process as the Republicans try to deliver on his top legislative priority. He commended GOP leaders for getting the tax legislation closer to passage in recent weeks and then said, “Cut top rate to 35% w/all of the rest going to middle income cuts?”

That puts him at odds with the House legislation that leaves the top rate at 39.6 percent and the Senate bill as written, with the top rate at 38.5 percent.

Trump also said, “Now how about ending the unfair & highly unpopular individual mandate in (Obama)care and reducing taxes even further?”

Overall, the legislation would deeply cut corporate taxes, double the standard deduction used by most Americans, and limit or repeal completely the federal deduction for state and local property, income and sales taxes. It carries high political stakes for Trump and Republican leaders in Congress, who view passage of tax cuts as critical to the GOP preserving its majorities at the polls next year.

With few votes to spare, Republicans leaders hope to finalize a tax overhaul by Christmas and send the legislation to Trump for his signature.

The key House leader on the effort, Rep. Kevin Brady, said he’s “very confident” that Republicans “do and will have the votes to pass” the measure this week.

Brady, chairman of the House Ways and Means Committee, said he doesn’t expect major changes to the bill as it moves to a final vote in the House. Still, he said Trump’s call for removing the requirement to have health insurance as part of the tax agreement “remains under consideration.”

Trump and the Republicans have promoted the legislation as a boon to the middle class, bringing tax relief to people with moderate incomes and boosting the economy to create new jobs.

“This bill is not a massive tax cut for the wealthy. … This is not a big giveaway to corporations,” Sen. Orrin Hatch, R-Utah, chairman of the Senate Finance Committee, insisted as the panel had its first day of debate on the Senate measure.

Hatch also downplayed the analysis by congressional tax experts showing a tax increase for several million U.S. households under the Senate proposal. Hatch said “a relatively small minority of taxpayers could see a slight increase in their taxes.”

The committee’s senior Democrat, Sen. Ron Wyden of Oregon, said the legislation has become “a massive handout to multinational corporations and a bonanza for tax cheats and powerful political donors.”

Tax increase for some

The analysis found that the Senate measure would increase taxes in 2019 for 13.8 million households earning less than $200,000 a year. That group, about 10 percent of all taxpayers, would face tax increases of $100 to $500 in 2019. There also would be increases greater than $500 for a number of taxpayers, especially those with incomes between $75,000 and $200,000. By 2025, 21.4 million households would have steeper tax bills.

The analysts previously found a similar magnitude of tax increases under the House bill.

A group of more than 400 millionaires and billionaires, including prominent figures such as Ben and Jerry’s founders Ben Cohen and Jerry Greenfield, designer Eileen Fisher and financier George Soros, asked Congress to reject the GOP tax plan and not give cuts to the super-wealthy like themselves.

“We urge you to oppose any legislation that further exacerbates inequality,” they said in a letter made public Monday.

Neither bill includes a repeal of the so-called individual mandate of Barack Obama’s Affordable Care Act, the requirement that Americans get health insurance or face a penalty. Several top Republicans have warned that including the provision would draw opposition and make passage tougher.

Among the biggest differences in the two bills that have emerged: The House bill allows homeowners to deduct up to $10,000 in property taxes while the Senate proposal unveiled by GOP leaders last week eliminates the entire deduction. Both versions would eliminate deductions for state and local income taxes and sales taxes.

Senate Majority Leader Mitch McConnell, R-Ky., asked whether the Senate’s proposed repeal of the property tax deduction could bring higher taxes for some middle-class Americans, acknowledged there would be some taxpayers who end up with higher tax bills.

“Any way you cut it, there is a possibility that some taxpayers would get a higher rate,” McConnell told reporters after a forum in Louisville, Kentucky, with local business owners and employees. “You can’t craft any tax bill that guarantees that every single taxpayer in America gets a tax break. What I’m telling you is the overall majority of taxpayers in every bracket would get relief.”

Biden Says he Wouldn’t Have Stepped in for Hillary Clinton

Former Vice President Joe Biden says he wouldn’t have agreed to replace Hillary Clinton as the Democratic presidential nominee under any circumstances.

Biden tells NBC’s “Today” show he had decided not to run last year, and says, “I would have never done that.”

He was asked about former Democratic National Committee chair Donna Brazile’s book, which says she considered replacing Clinton with Biden because of health concerns. Biden says, “I wouldn’t have taken” Clinton’s place as the party’s standard-bearer.

 

Biden says he was for Clinton, but that he worried about her prospects. He says not long before the election, “It hit me like a ton of bricks, there was no discussion of Issues” in her campaign.

 

Biden also said once again that he hasn’t decided about running in 2020.

 

 

 

EU Approves Economic Sanctions, Arms Embargo Against Venezuela

The European Union has approved economic sanctions, including an arms embargo on Venezuela.

EU foreign ministers meeting in Brussels announced the measures on Monday in response to regional elections last month, which they say worsened the country’s crisis.

The weapons ban is intended to prevent the government of President Nicolas Maduro from purchasing military equipment that could be used for repression or surveillance.

The sanctions also include setting up a system for asset freezes and travel restriction on some past and present Venezuelan officials close to Maduro.

Spain has long pushed for sanctions on those close to Maduro, but the EU has been divided over whom to target.

In Monday’s statement, ministers said they would focus on security forces, government ministers and institutions accused of human rights violations, and the disrespect of democratic principles or the rule of law.

Last Thursday, the U.S. imposed financial sanctions on 10 current and former Venezuelan officials because of corruption and abuse of power allegations related to Maduro’s crackdown on the opposition.

The EU also stressed that it would not recognize Venezuela’s pro-Maduro Constituent Assembly, whose 545 members took office in August and sidelined the opposition-led National Assembly. The EU said its creation has only served to “further erode democratic and independent institutions.”

Biden on 2020: ‘Not Sure It’s the Appropriate Thing’ to Do

Former Vice President Joe Biden said he is uncertain about a run for president in 2020, but indicated he’s looking for fresh blood to lead the Democratic Party back to the White House.

“I’ve done it a long time,” said Biden, who previously ran for president in 1988 and 2008, “and I’m just not sure it’s the appropriate thing for me to do.”

His comments came in an interview with Snapchat’s “Good Luck America” set to be released Tuesday morning, in one of Biden’s first on-camera interviews since leaving office in January. The Associated Press was provided with an exclusive preview of the interview.

Biden suggested that if “no one steps up,” he’d be open to giving it another try. 

“I’m not doing anything to run,” he said. “I’m not taking names, I’m not raising money, I’m not talking to anybody, but something’s got to happen.”

Democratic roster

Biden has launched a handful of outside political and policy organizations since leaving the Obama administration, including the Biden Foundation, formed to advocate for his domestic priorities.

The roster of Democrats considering a White House run has swelled well into the double-digits, with potential candidates emboldened by President Donald Trump’s historically low poll numbers.

Biden was interviewed alongside Ohio Gov. John Kasich, a Republican, at the University of Delaware last month.

“We’re both hoping that both our parties generate some real energetic people who have the depth and the capacity to do it,” Biden said of the pair.

Biden, 74, considered a run for the Oval Office in 2016, but decided against it, later citing the trauma of his son Beau’s death to cancer in May 2015 for keeping him from the race. The painful subject forms the story of his new memoir, Promise Me, Dad, set for release this week. Biden is launching a month-long tour to promote the book’s publication. He’s become a vocal critic of Trump’s administration in public appearances in recent months.

“We gotta turn this ship around,” Biden said of the country. “And I’d much prefer to be helping someone turn it around than being the guy trying to turn it around.”

Right decision in 2016

In an interview with Oprah Winfrey released Sunday, Biden said he regrets not being in the White House, but not his decision to stay on the sidelines last year. 

“I don’t regret the decision I made because it’s the right decision for my family,” he said.

Kasich, who has been an outspoken opponent of Trump’s since he challenged him for the Republican nomination in 2016, declined to address his own 2020 plans. “You hold the pen and the Lord will write the sentence,” he said.

Sexual Allegations Roil US Senate Race

Allegations of sexual misconduct against a Republican Senate candidate have thrown the party into chaos at a critical time – as Republicans make a major push to overhaul America’s tax code and as President Donald Trump concludes a marathon Asia trip. VOA’s Michael Bowman reports, many Republican lawmakers are denouncing or distancing themselves from firebrand Christian conservative Roy Moore, who, until last week, had been heavily favored to win next month’s special election for a Senate seat in Republican-leaning Alabama.

Venezuela Sets Foreign Debt Meeting for Monday Afternoon

Venezuela’s foreign debt renegotiation committee will meet with creditors at 2 p.m. (1800 GMT) on Monday at the government’s “White Palace” in downtown Caracas, the finance minister said on Saturday.

“Once again, we invite investors to register their participation in this meeting,” Simon Zerpa, who is also the finance boss of state oil company PDVSA but is on a U.S. sanctions list for alleged corruption, said in a Tweet.

Foreign investor sources had said Zerpa and committee head Tareck El Aissami, who is Venezuela’s vice president but also on a U.S. blacklist for alleged drug traffickers, would probably sit out the meeting to allay any fears about meeting them.

But Saturday’s exhortation by Zerpa, and the location of the meeting right opposite the Miraflores presidential palace, appear to indicate the meeting will not be a low-profile affair.

Socialist leader Nicolas Maduro’s move a week ago to summon bondholders for talks about “restructuring” and “refinancing” some $60 billion in bonds has spooked markets worried Venezuela is heading for a default amid U.S. financial sanctions.

President Donald Trump’s measures against the Maduro administration, which it accuses of being a “dictatorship” that has impoverished Venezuela’s 30 million people through corruption and incompetence, effectively bar U.S. banks from rolling over the country’s debt into new bonds.

Venezuela did, however, appear to be honoring its most recent debt payment: a $1.2 billion payment due on a bond from state oil company PDVSA. Two investors told Reuters they had finally received payment, albeit delayed.

It is unclear how widespread investor participation in Monday’s meeting in Caracas will be. U.S.-based creditors are not prohibited from attending the meeting, but are barred from dealings with officials like Zerpa and El Aissami.

Chairman: House Won’t Agree to Nix Property Tax Deduction

The chairman of the House’s tax-writing committee said Sunday that he’s confident that chamber won’t go along with the Senate’s proposal to eliminate the deduction for property taxes, setting up a major flashpoint as Republicans in the House and Senate aim to put a tax cut bill on President Donald Trump’s desk before Christmas.

 

The GOP is moving urgently to push forward on the first rewrite of the U.S. tax code in three decades, but key differences promise to complicate the effort.

 

Among the biggest differences in the two bills that have emerged: the House bill allows homeowners to deduct up to $10,000 in property taxes while the Senate proposal unveiled by GOP leaders last week eliminates the entire deduction.

 

The deduction is particularly important to residents in states with high property values or tax rates, such as New Jersey, Illinois, California and New York. Congressman Kevin Brady, chairman of the House Ways and Means Committee, said he worked with lawmakers in those states to ensure the House bill “delivers this relief,” and he was committed to ensuring it stays in the final package.

 

“It’s important to make sure that people keep more of what they learn, even in these high-tax states,” Brady, R-Texas, said during an appearance on “Fox News Sunday.”

 

Both the House and Senate bill would eliminate deductions for state and local income taxes and sales taxes paid. Sen. Chuck Schumer, D-N.Y., said Republicans should fully restore what is referred to as the SALT deduction, or millions of middle-class families would end up paying higher federal income taxes, not less.

 

“The House’s so-called ‘compromise’ would be saying to the middle class we’ll only chop off four of your fingers instead of all five,” Schumer said in a statement.

 

 

In Florida, All Eyes on Puerto Rican Voters After Maria

The arrival of more than than 130,000 Puerto Ricans in Florida since Hurricane Maria has some officials anticipating a political shakeup in a battleground state dominated by the Republican party.

 

Both parties are actively courting new arrivals to Florida, which President Donald Trump won last year by 112,000 votes out of 9.6 million cast.

 

Many Puerto Ricans have expressed outrage over Trump’s handling of the storm but have applauded efforts by Republican Gov. Rick Scott to welcome them.

 

As U.S. citizens, Puerto Ricans can vote in federal elections when they move to the mainland. Newcomers must register as voters by next July 30 to vote in primaries ahead of the 2018 general election of a new governor to replace term-limited Scott and choose Florida’s congressional delegation.

 

Javier Gonzalez has joined a human tide of more than 130,000 U.S. citizens arriving in Florida since Hurricane Maria wrecked Puerto Rico, grateful for a place to start over but resenting how their island has been treated since the disaster.

 

More than a million Puerto Ricans — about 5 percent of Florida’s population — already call the state home, and given the outrage many feel over President Donald Trump’s handling of the storm, political observers say this voting bloc could loosen the Republican Party’s hold on this battleground state.

 

Gonzalez, 38, saw the storm destroy the restaurant he opened with his father five years ago. Without power or reliable water, he became violently ill from food poisoning for three weeks. Finally, he packed his bags, determined to make his future in Miami instead.

 

“There is resentment, and we feel abandoned compared to Texas and Florida,” Gonzalez said. “We were desperate for help.”

 

Like any Puerto Rican, Gonzalez can vote in all elections now that he’s moved to the mainland. He doesn’t plan to register for any party, but he follows the news and understands their platforms. He’s aware of Trump’s tweets.

 

“It’s not right that we’ve fought from World War I, to Vietnam and Afghanistan and that the first thing the president says is: ‘You have a large debt, big problems and have cost us millions,'” Gonzalez added.

 

Puerto Ricans are not the gift to the Republican Party that the anti-Castro Cuban diaspora has been historically. They’ve tended to favor Democrats, given their support for public education and social services. Around 70 percent of Florida’s non-Cuban Latinos voted for Hillary Clinton.

 

Both parties are courting the new arrivals to Florida, which Trump won last year by just 112,000 votes out of 9.6 million cast.

 

“There is an intent to grab those who are coming,” said Rep. Robert Asencio, a Democrat of Puerto Rican descent who represents Miami in the Florida House and leads the Miami-Dade Committee for Hurricane Maria Relief.

 

“A lot of my colleagues say they are not politicizing this, but there is an effort to bring people either to the Democratic or the Republican side,” Asencio said.

 

Newcomers must register by next July 30 to vote in 2018 for a new governor to replace term-limited Republican Gov. Rick Scott and choose Florida’s congressional delegation, now 11 Democrats and 16 Republicans. Democratic U.S. Senator Bill Nelson also defends his seat next year, and Scott, who has been applauded for helping evacuees, is expected to challenge him in what could be a close race.

 

Scott set up three disaster relief centers to help arrivals with driver’s licenses, job searches, and disaster aid applications. Scott also asked education officials to waive public school enrollment rules for evacuated islanders, and to give college-bound evacuees the same tuition breaks state residents get.

 

Asencio calls Scott’s actions “damage control,” given the multimillionaire governor’s close relationship with Trump, who offended Puerto Ricans by tweeting they wanted “everything to be done for them” rather than taking responsibility for their own recovery. They also resent Trump’s rating of his own disaster response as a “10 out of 10,” blaming his administration for delays that exposed their families to illness and misery.

 

The island still faces a lengthy and painful recovery after the storm took down the entire electrical grid, leaving hospitals in the dark and closing schools for several weeks. Initial projections that 95 percent of the people will have power restored by year’s end now look optimistic.

 

Maria’s evacuees are following waves of people frustrated by Puerto Rico’s unemployment and debt crisis who settled in Central Florida, shifting from New York, the favored destination of previous generations. Of the more than 140,000 islanders estimated to have left since the storm, more than 130,000 went to Florida, where Puerto Ricans may soon displace Cubans as the largest Latino group.

 

State Rep. Rene Plasencia, a Republican from Orlando, predicts that Scott’s warm welcome will leave a bigger impression on the newcomers than any Trump tweets.

 

“For whatever people think of the president, you have to take into consideration the actions of Governor Scott,” said Plasencia, whose mother and wife are from Puerto Rico. “People aren’t making decisions out of a sequence of tweets… It makes good news, but it doesn’t make political shifts.”

 

Billionaires Charles and David Koch also are involved, funding the Libre Initiative, which welcomed hundreds of evacuees on the first cruise ship to arrive from San Juan.

 

Cesar Grajales, who lobbies for Libre, says they’re helping evacuees learn English and connect with community and business leaders.

 

Democrats hope Colombian-American Annette Taddeo’s recent underdog state Senate victory against a well-funded Republican in South Florida shows her anti-Trump message will keep resonating.

 

“It is a strong indication that voters are paying attention, and they are angry,” said Cristobal Alex, president of the Latino Victory Project. “We wouldn’t have the devastation and abandonment of Puerto Rico without Donald Trump. People will look at that.”

 

On the island, Puerto Rico’s lack of statehood means they can’t vote in general presidential elections, and can only send a non-voting representative to Congress. On the mainland, they’ll have more power.

 

“I know for a fact that we are well educated and we are going to come here to work,” Gonzalez said. “And yes, we are going to make a voice. We are going to make a bigger voice than before.”

 

 

Emirates Airlines Orders 40 Boeing 787s in $15B Deal

Emirates Airlines agreed to buy 40 Boeing 787-10s in a deal worth more than $15 billion.

The purchase was announced Sunday at the Dubai Air Show by the largest airline in the Middle East.

Deliveries of the wide-body, twin-engine planes are set to begin in 2022.

Boeing’s website says the aircraft typically carries 330 passengers with a range of 11,900 kilometers.  

The manufacturer says the 787 is 25 percent more fuel-efficient than the aircraft it replaces.

Also, Azerbaijan Airlines announced a $1.9 billion deal for more 787s, five to carry passengers and two more to haul freight.

West Virginia Mine Sites Touted for Agriculture Potential

West Virginia could produce profitable niche crops grown on reclaimed mine sites.

At least that’s what Nathan Hall, president of Reclaim Appalachia envisions.

Hall spoke about uses for reclaimed sites at the West Virginia Good Jobs Conference last Tuesday at Tamarack. The goal of the conference is to bring together entrepreneurs, funders, local community leaders and government agencies to trade ideas, provide mentorship and support entrepreneurs in southern West Virginia.

Reclaim’s first operational site is next to the Buck Harless Wood Products Industrial Park in Holden, a property owned by the Mingo County Redevelopment Authority.

Former miners

Reclaim and Refresh Appalachia have partnered to develop an active commercial agroforestry site, which is on about 50 acres of land that was mined and reclaimed in the late 1990s, managing crops including blackberries, hazelnuts, lavender and pawpaws. The site also has animals including chickens, hogs, goats and honeybees, which are managed with “rotational grazing techniques.”

Hall said he first started work on the Mingo County site early last year. The business has five full time crew members and one crew chief. Of those six employees, four are former coal miners.

According to Reclaim’s website, the organization intends to replicate the model on more mined properties and on a larger scale.

“With any post surface mine landscape, this model works well,” Hall said. “It’s especially suited to areas where it’s not feasible to turn into a big shopping center or a golf course.”

Long-term approach

Hall said the model is designed to be long term and said sites like these may not see profit until a few years down the road.

“This approach is never profitable in year one or even year two,” he said. “It’s more of a three-five year horizon to get into the black. A lot of agricultural investments like this are longer term.

“With animals, you have to establish a breeding stock. It takes some time before you’re able to send animals to slaughter,” Hall said. “And with perennial plants, it takes a year of establishment to get fruit, sometimes three to four years. We are looking at this as a longer-term investment but this is a pretty common way to invest in projects you see on the West Coast and the Northeast. A lot of investors know this is not a quick turnaround.”

However, down the road, Hall said he envisions West Virginia as being primary producers of niche produce on the East Coast.

“If we produce enough at a low cost and upgrade to high value products, move it six to nine hours away, there is a huge amount of ways to use these lands in ways that we’ve barely started to scratch the surface,” he said.

Crops, animals for rocky soil

Hall mentioned the possibility of products including lavender or grapes — plants that can thrive in the rocky soil.

“You could even have things like goat meat, which is something you don’t think about as something to eat in this area,” Hall said. “There are huge markets for it, maybe not here but the conditions are great for these sites.”

Hall spoke about some of the struggles with using these sites including the rocky terrain itself.

“You think about nice farmland where there is this loose, fluffy, brown soil you can almost scoop your hand into,” he said. “This soil, you can’t get a shovel to go more than 2 inches. The only thing that can survive is something with a shallow breeding system.”

Controlling invasive species

Another issue is invasive species of plants that were planted for reclamation. However, Hall said animals including goats and hogs can eat the shrubby plants while also adding nutrients to the soil.

“I’m a fan of high-intensity rotational grazing,” he said. “You have people out there tending fences and maintaining the animals and the site regularly. It has a more diversified income. And there is a benefit to the land through manure and reducing unwanted vegetation. You can eventually replant to better quality pastures if you do rotational.”

He said stacking systems including orchards and animals have been efficient in maintaining the land along with adding a larger labor force.

“You have the animals in between the orchard growth keeping the areas maintained,” he said. “It’s benefiting the roots and the trees. You’re also able to sell the meat and eggs while harvesting fruit and berries.”

Not the first attempt

Hall isn’t the first or the only person to grow crops on reclaimed mine sites. Hall mentioned one in particular back in the 1990s in Kentucky where there was a hog farm on a former mine site.

“There are a lot of activity in these spaces,” he said. “We are more focused on stacking systems and having this multifaceted approach. Other folks want one piece. It’s an interesting time to be involved. We can learn from each other and grow a new sector of the economy.”

ANYmal Has Four Legs, Good Balance, and Batteries Included

Prepare to be amazed … and possibly terrified. Engineers in Zurich have created a four-legged robot that may one day do labor that is dangerous for humans. It’s also equipped with thermal cameras, which means the “ANYmal” may one day keep an eye on you. Arash Arabasadi reports.

Lawmakers: Did CIA Watchdog Nominee Mislead Congress?

Two former CIA employees are accusing the Trump administration’s choice for CIA chief watchdog of being less than candid when he told Congress he didn’t know about any active whistleblower complaints against him.

Members of the Senate Intelligence Committee asked Christopher Sharpley, the current acting inspector general who’s in line for the permanent job, about complaints that he and other managers participated in retaliation against CIA workers who alerted congressional committees and other authorities about alleged misconduct.

“I’m unaware of any open investigations on me, the details of any complaints about me,” Sharpley testified at his confirmation hearing last month.

He said he might not know because there is a process providing confidentiality to anyone who wants to file a complaint against government officials, who often are individually named in cases against management.

“No action or conclusions of wrongdoing have been made about my career or anything that I’ve done,” Sharpley added.

The committee is still considering Sharpley’s nomination.

​Senators skeptical

Sens. Chuck Grassley, chairman of the Senate Judiciary Committee, and Ron Wyden say they find it hard to believe Sharpley didn’t know about the complaints when he testified. They said one of the open cases is being investigated by the Department of Homeland Security’s internal watchdog.

They say the inspector general’s office, which is looking into the CIA matter to avoid a conflict of interest, asked Sharpley in January for documents. The office asked to interview Sharpley on Oct. 12. Sharpley’s office said he wouldn’t be available until after Oct. 17, the day he testified to senators.

“How is it possible that he could have been unaware of any open investigations against him at the time he testified?” Grassley, R-Iowa, and Wyden, D-Ore., asked in a letter they wrote to Senate intelligence committee leaders.

​Committee vote delayed

GOP Sen. Richard Burr of North Carolina, the Senate Intelligence Committee chairman, had planned a vote on Sharpley’s nomination last month. It has been delayed while the committee holds discussions about the whistleblower cases, according to someone familiar with the matter. The person wasn’t authorized to discuss the issue and spoke to The Associated Press on condition of anonymity.

CIA spokesman Ryan Trapani defended Sharpley’s five-year tenure at the agency as deputy and then acting inspector general. He said Sharpley has 36 years of investigative and law enforcement experience and created two inspectors general offices from scratch within the federal government.

“Whether there are any complaints or investigations regarding Mr. Sharpley is not something we could confirm or comment on,” Trapani said. “What we can say is that Mr. Sharpley has had a sterling five-year career at CIA and there have never been any findings of wrongdoing or misconduct of any sort by Mr. Sharpley during his tenure here.”

Testimony challenged

Documents provided to the AP by attorneys representing two former CIA employees challenge Sharpley’s testimony.

They point to discord over several years within the CIA’s inspector general’s office, an independent unit created in 1989 to oversee the spy agency. It’s charged with stopping waste, fraud and mismanagement and promoting accountability through audits, inspections, investigations and reviews of CIA programs and operations — overt and covert.

John Tye, executive director of Whistleblower Aid, who is representing two of the complainants alleging retaliation by Sharpley and other senior managers, said some discord in the office stemmed from a case several years ago involving kickbacks from contractors.

The Justice Department announced in 2013 that three CIA contractors had agreed to pay the United States $3 million to settle allegations that they provided meals, entertainment, gifts and tickets to sporting events to CIA employees and outside consultants to help get business steered their way.

The criminal case fell apart after intelligence employees discovered that evidence in the case was being fabricated and witness statements were being altered. These employees secretly went around Sharpley and then CIA Inspector General David Buckley and contacted the U.S. attorney’s office. Tye said that after learning about the falsified evidence, a guilty plea in the case, which had been accepted by a judge, was voided at the request of the U.S. attorney.

Afterward, leaders at the CIA inspector’s office asked auditors across town at the Federal Housing Finance Agency to look into their in-house matter. It’s unclear why that agency — a place where Sharpley previously worked — was chosen to handle the matter. Results of that investigation haven’t been revealed.

In an Oct. 30 letter to the Senate Intelligence Committee, Tye said that during the FHFA probe, Sharpley improperly “interrupted witness interviews, walking in special designated conference rooms to learn the names of the whistleblowers within his staff” who reported evidence tampering to outside oversight bodies. Tye said no one within the CIA inspector general’s office was prosecuted or disciplined for evidence tampering.

“Sharpley successfully identified some, but not all, of the whistleblowers,” Tye said. He said retaliation involved forcing administrative leave, security clearance decisions and other harassment.

Complainants’ stories

One complainant is Jonathan Kaplan, 59, a former special agent and investigator in the CIA’s inspector general’s office who spent 33 years at the agency. He claims that before he went to talk to staff at the House Intelligence Committee about the contactors case, he queried a computer in his office to refresh his memory on the details.

He later received a formal letter of warning for searching the computer system. That ultimately prevented him from renewing his security clearance, effectively ending his government career. He contacted an inspector general overseeing all 17 U.S. intelligence agencies and received a letter earlier this year acknowledging that office was handling the case.

A second complainant is Andrew Bakaj, 35, who worked in the CIA inspector general’s office as a special agent from 2012 to 2015. He was instrumental indeveloping agency regulations governing whistleblower reprisal investigations.

When some of his colleagues came to him to allege misconduct in the office, he referred them to the same inspector general Kaplan went to. It was an office Bakaj and his colleagues had been told not to cooperate with.

He, too, searched on the office computer on a matter he was questioned about and had worked on as part of an investigation conducted by the inspector general that oversees all U.S. intelligence agencies. Two weeks later, superiors summoned him and put him on paid leave that lasted 15 months. He then resigned.

Cambodian Netizens Face New Risks as Government Tightens Online Controls

In Cambodia, one of Asia’s poorest countries, the rapid improvement in internet connectivity and availability of affordable smartphones has been a great leveler.

Many of its roughly 15 million urban and rural inhabitants have gained, in a short time, access to mobile internet and social media, which provide relatively free communication and independent, nongovernment sources of information.

Some tech-savvy Cambodian activists, like Ngeth Moses, began to harness the internet to foster social change years ago.

Ngeth Moses, head of the Media/ICT Unit with the Center for Alliance of Labor and Human Rights in Phnom Penh, has campaigned online through social media platforms for political freedom and human rights causes.

Ngeth Moses has also trained dozens of members of NGOs and youth organizations on how to use online campaigning and online expression platforms, such as Open Cyber Talk.

In the past year or so, however, the optimism among activists about the positive impact of greater internet access has given way to growing fears as the Cambodian government stepped up efforts to curtail online freedom of expression and political opposition.

“I’m more cautious now before posting or commenting [on] anything political online,” Ngeth Moses said, because of the growing state scrutiny of online content and the increase in reprimands or arrests of netizens.

At the same time, however, Prime Minister Hun Sen and the ruling Cambodian People’s Party (CPP) have actively raised their online profile ahead of the national elections next year in an attempt to reach millions of new social media users.

Tightening online control

In early 2016, a new law increased the government’s authority over the telecommunications industry to include “overbroad surveillance powers” that pose “a threat to the privacy of individual users,” according to the U.S. think tank Freedom House.

The law includes punishments for several offensives, among them a prison term of seven to 15 years for threatening “national security,” a charge that the local human rights group Licadho said is vague and open to political abuse.

A pending cybercrime law is also raising concerns about legal limits on what users are allowed to post on the internet.

In 2016, the court used an older law to punish online dissent when it sentenced university student Kong Raiya to 18 months in prison for incitement over a Facebook post that criticized the CPP.

The opposition Cambodia National Rescue Party (CNRP) has been increasingly targeted over online statements.

Senator Hong Sok Hour was sentenced to seven years in prison for allegedly posting false documents on Facebook in 2016. On October 25, King Norodom Sihamoni pardoned him at Hun Sen’s request.

Last month, a 20-year-old fruit vendor was arrested in western Cambodia and reportedly charged with incitement and public insult for Facebook posts said to defame Hun Sen and the Queen Mother Norodom Monineath Sihanouk.

“The situation of internet freedom in Cambodia is of increasing concern,” said Ramana Sorn, who coordinates the Protecting Fundamental Freedoms Project of the Cambodian Center for Human Rights, adding that the government’s technological ability to collect the communications and social media data from individual users has expanded exponentially.

“In the current political climate, social media users must be keenly aware of the risks related to what they are posting and sharing on Facebook and other web platforms,” Ramana Sorn said.

Nop Vy, media director of the Cambodian Center for Independent Media, echoed these concerns, saying, “Human rights and social workers who are using the social media platforms feel insecure in communicating and publishing their information.”

​Government plays down concerns

Government spokesmen told VOA Khmer that the activists’ criticism was overblown and that prosecutions over online content concerned only those who defamed others or posed genuine threats.

“We need those multiple opinions, but we do not want those insulting or organizing any subversive campaigns against other people’s reputations — they will face legal consequences,” said Phay Siphan, spokesman for the Council of Ministers.

“Only those having a hidden agenda are concerned about it,” CPP spokesman Sok Eysan said. “Those who have nothing to hide, they need not worry about being surveilled or monitored.”

The rising online repression comes, however, amid a nationwide crackdown on political opposition and independent media ahead of the July 2018 national elections.

On September 3, CNRP Chairman Kem Sokha was arrested and charged with treason.

Hun Sen announced the CNRP would be dissolved, and many party members, including deputy party leader Mu Sochua, have fled Cambodia since the first week of October, fearing arrest.

Also in September:

The 24-year-old independent English-language newspaper The Cambodia Daily closed after receiving a $6 million tax bill;
The Phnom Penh office of U.S.-funded Radio Free Asia Khmer-language news broadcaster was closed;
Local FM radio stations were ordered to stop carrying the Khmer news broadcasts by RFA and the Voice of America; some independent FM stations were shut down;
And the U.S.-funded National Democratic Institute was expelled after years of operation. 

This crackdown, seen as the worst in 20 years, prompted widespread international condemnation and threats of action from the European Union and the United States, but Cambodia, which relies on China’s political support and largesse, appears unmoved.

​Greater access to information

Despite the broad crackdown, millions of Cambodians are now on Facebook and connected through digital communications apps, sometimes encrypted.

Experts said any repressive government will find it hard to check the spread of independent information that can inform the public of politically sensitive issues.

In 2015, internet/Facebook became the main information channel for Cambodians, with 30 percent of netizens using it to access information, surpassing the more state-controlled TV (29 percent) and radio (15 percent), according to an Asia Foundation report.

The improved access to online information “often wakes people up and makes [them] more likely to be critical of the government,” said Mike Godwin, an internet freedom expert and a senior fellow with the U.S.-based R Street Institute.

“In fact, efforts to suppress [online] dissent probably will not work as well as they had hoped because they may have the effect of awaking citizens to their unhappiness,” he said.

When popular political analyst Kem Ley was assassinated last year, his funeral march in the capital, Phnom Penh, drew hundreds of thousands of people, many of whom reportedly learned of the event through online messages and posts that quickly went viral.

Cambodia’s capacity and effort to control online content, however, are still less than those of its mainland Southeast Asian neighbors, according to Freedom House, which ranked the country on its 2016 Freedom on the Internet Index as “partly free.”

​Strongman seeks ‘likes’

Amid the tightening government control on online dissent, Hun Sen and his CPP have sought to expand their social media use to reach out to the public ahead of the national elections next year. In 2013 elections, the CPP narrowly beat the CNRP in a disputed result.

The 65-year-old strongman has urged officials to use Facebook, and he has presented a warm, revitalized image on his Facebook page, which he began in 2015 and has 8.5 million followers. Some photos show him driving passenger cars, attending family outings and frequently exercising.

Some researchers have said that the Cambodian government has formed a nationwide program with “cyberunits” run at local levels, which spread countless pro-CPP messages, denounce the opposition and attack government criticism on social media.

Ngeth Moses, the tech-using activist, said the CPP’s recent embrace of social media only belied the worsening freedom of expression in Cambodia, as could be seen in the controls exercised over pro-CPP Facebook pages. 

“Commenters on the prime minister’s [Facebook] page have been followed and if these comments contained inappropriate words, there were people who got the commenters to apologize,” he said. “On the surface, the internet freedom in Cambodia looks better than in some other countries in ASEAN [the Association of Southeast Asian Nations], but in practice it is not.”