Friday, 16 May 2014

Man gets 20 years for role in cybercrime syndicate


A Phoenix man has been sentenced to 20 years in federal prison for his role in what authorities say is an unprecedented criminal case involving an international cybercrime syndicate with hundreds of thousands of U.S. victims.


A federal judge in Las Vegas imposed the sentence Thursday on David Camez, 22, who already is serving a seven-year term in Arizona for similar crimes.


Camez, who was convicted of racketeering charges late last year, is the first of 55 members of the Las Vegas-based "Carder.su" syndicate to go to trial. They were charged in four separate indictments in 2012.


About 20 defendants have pleaded guilty. Of the handful who have been sentenced so far, all have drawn only two years in prison. Two dozen defendants, including the group's Russian leaders Roman Zolotarev and Konstantin Lopatin, are still at large, authorities said.


The case marks the first time the Justice Department has used federal racketeering statutes to go after a cybercrime syndicate, the Las Vegas Review-Journal reported (http://bit.ly/1nWWtxR ).


"As shown in this case, cybercrime has grown into an industry and is rapidly overtaking traditional crime, such as bank robbery," Nevada U.S. Attorney Daniel Bogden said. "Cybercrime was once viewed as the crime wave of the future, but in reality that threat is here now."


The syndicate is accused of victimizing hundreds of thousands of Americans and several financial institutions, and of committing more than $50 million worth of financial fraud.


Prosecutors say its scheme revolved largely around the buying and selling of pilfered debit and credit card information on an Internet site called Carder.su. The secretive criminal organization had more than 7,800 members worldwide.


Camez became involved at the age of 17.


"Camez was a member of a vast criminal organization that facilitated rampant cyberfraud throughout the world," said David O'Neil, acting assistant attorney general of the Justice Department's Criminal Division. "This organization is the new face of organized crime — a highly structured cyber network operated like a business to commit fraud on a global scale."


Michael Adams, a Secret Service agent who infiltrated the crime ring, testified Thursday that federal agents recovered 210,000 stolen credit and debit account numbers in raids.


Camez, whose online nicknames were "Bad Man" and "Doctorsex," had nearly 2,000 compromised account numbers in his possession, Adams said.


He also was ordered to share in restitution of nearly $51 million.


During sentencing, U.S. District Judge Andrew Gordon said he had sympathy for the victims because he also has experienced identity theft.


"You appear to be a pretty smart guy," Gordon told Camez. "It's a shame you used your talents in a bad way. Your history tells me I need to protect the public from you."



Commemorating the 60th Anniversary of Brown v. Board of Education and Continuing the March Toward Justice

Ed. note: This is cross-posted on the U.S. Department of Justice blog. See the original post here.


On Saturday, May 17, 2014 at 10:00 a.m. ET, Attorney General Eric Holder will deliver remarks of reflection at the Morgan State University commencement ceremony where he will commemorate the 60th anniversary of Brown v. Board of Education. The address will be live streamed at www.morgan.edu/live.


Decades ago, nearly 200 plaintiffs from across the country joined together in a class-action lawsuit to challenge the doctrine of “separate but equal,” striving to bring the issue of racial segregation before the highest court in the land. Their dangerous, long, and grueling march culminated exactly 60 years ago tomorrow – on May 17, 1954 – at the United States Supreme Court.


On that extraordinary day, a unanimous Court, led by Chief Justice Earl Warren, declared that separate was inherently unequal, effectively outlawing racial segregation in schools and other public accommodations throughout America. This marked a major victory for the cause of equal justice under law, an inflection point in American history, and a spark that in many ways ignited the modern Civil Rights Movement.


Yet our nation did not automatically translate the words of Brown into substantive change. The integration of our schools was a process that was halting, confrontational, and at times even bloody. And, for all the progress our nation has seen over the last six decades, this is a process that continues, and a promise that has yet to be fully realized, even today.


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Turkish firm, govt deny negligence in mine fire


Government and company officials denied Friday that negligence caused Turkey's worst mining disaster, as opposition lawmakers raised questions about oversight and a survivor said safety inspectors never visited the lower reaches of the mine.


Anger continued to surge in the wake of the coal mine inferno in the western town of Soma that has killed at least 298 miners. On Friday, police used tear gas and water cannon to disperse rock-throwing protesters in Soma, where about 1,500 demonstrators urged Prime Minister Recep Tayyip Erdogan's government to resign.


In Istanbul, police forcefully broke up a crowd of about 150 people who lit candles and lined up mining helmets on the ground to honor the victims of the disaster, the DHA news agency reported.


Energy Minister Taner Yildiz said at least 298 people died in Tuesday's tragedy. Another two or three people are believed to be missing underground while 485 miners escaped or were rescued.


Protesting workers have described the disaster as murder, not an accident, because of what they call flawed safety conditions at that mine and others in the country.


Erdal Bicak, 24, said he had just ended his shift Tuesday and was making his way to the surface when mine managers ordered him back down because of a problem.


"The company is guilty," Bicak said, adding that managers had machines that measure methane gas levels. "The new gas levels had gotten too high and they didn't tell us in time."


The government has asked for a parliamentary inquiry into the disaster to find out what happened and why — but it appeared that officials had already made up their minds Friday.


"There's no negligence with respect to this incident," insisted Huseyin Celik, a deputy leader of the ruling party. He said the mine in Soma "was inspected vigorously 11 times since 2009."


"Let's learn from this pain and rectify our mistakes," he said. "(But) this is not the time to look for a scapegoat."


Bicak, however, said the last inspection at the Soma mine was six months before the disaster. He said the inspectors only visit the top 100 meters (yards) of the mine and the managers knew that. So, the managers would clean up the top part of the mine and the inspectors never saw what was below, he said.


The miner said the pathways are really narrow and steep down below, and the ceilings are so low miners can't stand up, he said, adding that's why it was so hard to get out and that was what the inspectors weren't seeing.


But Akin Celik, the Soma mining company's operations manager, echoed the government's argument.


"There's no negligence with respect to this incident. We all worked with all our heart and soul. I have not seen anything like this in 20 years," he told reporters.


The question remains, however, of how the mine could have been checked so often and still have such a deadly fire.


Ibrahim Ali Hasdan, a Soma resident, said he was astonished by claims there was no negligence.


"This statement hurts people's hearts ... even a young child wouldn't be convinced by this statement," he said.


The chief prosecutor in the nearby city of Akhisar said prosecutors had begun interviewing some of the injured miners and other witnesses.


Ozgur Ozel, an opposition lawmaker from the Soma region, petitioned parliament in October to hold an inquiry into mine safety but the proposal was voted down. Ozel says there's a mine accident every three or four months in the Soma region and eleven workers have died in the last three years.


Mine inspections do take place but the owners are tipped off up to a week before, Ozel alleged.


"The main suspicion about it is that there is a relationship between the government and those running this mine and the mine was not being properly supervised" for health and safety issues due to those ties, Ozel told The Associated Press in an interview Friday.


Ozel's party has criticized the government for not adopting the International Labor Organization's convention on mine safety, widely regarded as the industry standard.


Joe Drexler of the Global Union Federation visited Turkey several times between 2008 and 2010 to urge government officials to ratify the ILO convention and improve health and safety in the country's mines.


"I have no doubt that this disaster could have been averted if this convention had been accepted," Drexler told the AP in a telephone interview from Canada.


Funeral prayers were said in mosques throughout Turkey for the victims and soccer fans draped their team's scarves Friday over some of the graves in Soma.


Erdogan attended one such ceremony in Istanbul. The disaster could hurt his political ambitions — Erdogan has made no secret of his desire to run for president in the country's August election after serving as prime minister for the last 11 years.


President Barack Obama called Turkish President Abdullah Gul to convey condolences and offer assistance, a White House statement said.


Celik, the mining official, said thick smoke from the underground fire killed miners who had no gas masks.


Bicak, the surviving miner, said he ended up in an area about a kilometer underground with 150 people when he heard an explosion. He said they were given old oxygen masks that he thought hadn't been checked in many years.


Bicak and a close friend tried to make it to an exit, but there was a lot of smoke, and it was very narrow and steep. He said he and his friend took turns slapping each other to stay conscious.


"I told my friend 'I can't go on,'" Bicak said. "'Leave me here. I'm going to die.'" But his friend said to him, "'No, we're getting out of here.'"


Bicak eventually made it out of the mine with his friend — by then in a dream-like state, lapsing in and out of consciousness. He said he lost many friends, and that out of the group of 150 in the area, only 15 made it out alive.


Bicak, whose leg was badly injured and in a cast, recounted his story while in a town square with other miners who were holding candles in Savastepe, about 30 kilometers (20 miles) from Soma.


The tragedy spelled the end of his mining career, he said.


"I'm not going to be a miner anymore. God gave me a chance and now I'm done."


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Suzan Fraser reported from Ankara.



Nebraska jobless rate drops to 3.6 percent


Nebraska's preliminary unemployment rate dropped two-tenths of point to hit 3.6 percent in April, the third-lowest rate in the nation, according to a report released Friday.


The Nebraska Labor Department said the March rate was revised to 3.8 percent from the preliminary figure of 3.7 percent and that the April figure was four-tenths of a point below the 4 percent reported a year ago.


"This is the second month this year that Nebraska's unemployment rate has been at 3.6 percent," said Commissioner of Labor Catherine Lang. "Not only has the unemployment rate dropped from March to April, but the labor force has also grown and employment is up over the month."


Nebraska's rate trailed only Vermont's 3.3 percent and North Dakota's 2.6 percent. All three marks are well below the preliminary national figure of 6.3 percent in April, a drop of four-tenths of a point from March.


There were 1,028,189 people in the state labor force last month, the report said, compared with 1,027,490 in March. The number of unemployed dropped to 37,489 from 38,620 in March.


In Omaha the preliminary unemployment rate fell to 3.7 percent last month, compared with 4.5 percent in March. The new rate is four-tenths of point under the 4.1 percent of April 2013. Lincoln's April rate also fell, to 2.9 percent from 3.5 percent in March. The April 2013 mark was 3.4 percent.


The unemployment rates for Lincoln and Omaha are not seasonally adjusted, so they cannot be directly compared with the state unemployment rate.


The rate in the Grand Island market, which includes Hall, Howard and Merrick counties, returned to the statewide range in April, hitting 3.1 percent. It had jumped well out of the state's range in March to reach 6.7 percent, compared with 3.9 percent in February. Lang said March's increase came mostly in the manufacturing sector and did not involve plant closures. But she said she could not provide more details because of federal confidentiality regulations.


Here are all preliminary area labor market unemployment rates for April, followed by the revised March rates:


—Beatrice: 3.4, 4.4


—Columbus: 2.8, 3.3


—Fremont: 3.6, 4.2


—Grand Island: 3.1, 6.7


—Hastings: 3.3, 4.4


—Kearney: 2.6, 3.2


—Lexington: 3.7, 4.5


—Norfolk: 2.9, 3.8


—North Platte: 2.9, 3.5


—Red Willow: 2.6, 3.1


—Scotts Bluff: 3.8, 4.4


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Online:


Nebraska Department of Labor: http://1.usa.gov/1k0jf5X



Grain lower, beef higher and pork lower


Grain futures were lower Friday on the Chicago Board of Trade.


Wheat for July delivery fell 4 cents to $6.7425 a bushel; July corn was .75 cent lower at 4.8350 a bushel; July oats were 13.50 cents lower at $3.37 a bushel; while July soybeans fell 5.25 cents to $14.65 a bushel.


Beef was higher and pork was lower on the Chicago Mercantile Exchange.


June live cattle rose .50 cent to $1.3790 a pound; August feeder cattle was .90 cent higher at $1.9332 a pound; while June lean hogs fell .50 cents to $1.1892 a pound.



Machinists union strikes at Stennis over pensions


Dozens of Lockheed Martin employees at the Stennis Space Center near Bay St. Louis are on strike.


WLOX TV reports (http://bit.ly/1lHzaHt ) picket lines were set up early Friday morning.


The employees who are a part of the International Association of Machinists and Aerospace Workers union say they are fighting to save their retirement.


The striking workers say having a pension is a perk all Stennis employees enjoy, and they will not be the only ones forced to take a gamble with their retirement.


Until the strike is over, plant officials says other Lockheed Martin employees who work at Stennis have the option to go through an alternate gate so they will not have to cross the picket lines.



Labor force in northeast Neb., Iowa, SD detailed


Officials say there is a sizeable workforce in northeast Nebraska, northwest Iowa and southeast South Dakota interested in new jobs.


The Nebraska Departments of Labor and Economic Development released the report on Thursday. Officials say the information could help attract new businesses to the area.


The report says 116,500 people in the area say they might be interested in a new job if it was a good fit with their skills and met their salary and schedule expectations. That figure includes some people who already have jobs.


The study focused on Columbus, Fremont, Norfolk, South Sioux City, Wayne, and West Point, as well as northwestern Iowa and southern South Dakota. It included 428,094 adults in the area.



Mississippi job market improves slightly in April


Mississippi's unemployment rate fell to 7.5 percent in April, as more people found jobs despite a falling labor force. A separate survey showed employers added 5,000 people to their payrolls in April, reversing four months of declines.


Both sets of figures — adjusted to cancel out seasonal changes — were released Friday by the U.S. Labor Department.


Mississippi's unemployment rate was 7.6 percent in March and 8.8 percent in April 2013.


Though April's performance was better than the anemic figures posted earlier this year, Mississippi retains the sixth-highest unemployment rate among the states.


The national unemployment rate fell to 6.3 percent in April from 6.7 percent in March. The rate in April 2013 was 7.5 percent.


The Labor Department said 95,400 Mississippians were unemployed in April, down about 1,000 from March and down from 114,500 in April 2013.


Mississippi's nonfarm payrolls rose by almost 5,000 to 1.12 million after falling four months in a row. April's strong growth means payrolls were 10,000 higher than in April 2013. But the state still has 3.7 percent fewer workers than the all-time high recorded in February 2008.


Employment rose in Mississippi in sectors including trade, transportation and utilities; professional and business services; leisure and hospitality; construction and manufacturing. Employment was flat in education and health services, financial activities and government.


The broadest measure of those who are unemployed averaged 13.9 percent in Mississippi from April 2013 through March 2014, the most recent figures available. That number includes people who are looking for work only sporadically, have given up looking or are working part time because they can't find a full-time job.


Nationwide, that broad measure averaged 13.4 percent during the same time.


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Online: State employment report: http://1.usa.gov/104hKGL



Ex-UGA coach Donnan not guilty in investment case


A jury on Friday found former University of Georgia football coach Jim Donnan not guilty on all 41 charges related to an investment fraud scheme.


Donnan faced charges including conspiracy, mail fraud, wire fraud and money laundering. Donnan's lawyers maintained he was duped and thought he was sharing an opportunity with friends.


Prosecutors said the 69-year-old and Gregory Crabtree of Proctorville, Ohio, ran a fraudulent investment scheme from September 2007 to December 2010 through GLC Limited, a West Virginia-based company dealing in wholesale and closeout merchandise. The pair promised high rates of return but paid investors with other investor money, according to the prosecution.


Prosecutors argued that Crabtree ran the day-to-day operations of the scheme and that Donnan used relationships of trust within his extensive network of personal and professional contacts to lure investors.


Prosecution witnesses included business leaders, former football players and high-profile college coaches who invested — including North Carolina State University basketball coach Mark Gottfried, Texas State football coach Dennis Franchione, Cincinnati football coach and former Texas Tech coach Tommy Tuberville, and former Texas Tech men's basketball coach Billy Gillispie.


Most of the investors testified that their trust in Donnan and his assurances that they wouldn't lose their initial investment money played heavily in their decisions to invest. Many received high payouts initially, prompting them to turn around and invest more money. Almost all of them lost money.


The prosecution argued that Donnan falsely told investors that they were putting their money in "presold deals" — merchandise they would purchase for which Crabtree already had a committed buyer — when in fact they were buying merchandise and then looking to sell it. But the company wasn't generating enough profits and money from new investors was continually needed to pay the company's expenses and other investors, prosecutors said.


Donnan's attorneys maintained that he was also a victim in Crabtree's scheme, that he thought he'd found a great investment and wanted to share his good fortune with others.


Crabtree pleaded guilty last month to a single conspiracy charge and faces up to five years in prison.



'Halo' TV series, 'Halo 5' game launching in 2015

The Associated Press



Master Chief is returning to the battlefield next year.


Microsoft announced plans Friday to release the video game sequel "Halo 5: Guardians" for the Xbox One and a "Halo" television series to be produced by Steven Spielberg in fall 2015. The next entry in the sci-fi shooter series starring super-soldier Master Chief will runs at 60 frames per second on a new engine created by "Halo" developer 343 Studios.


"'Halo 5: Guardians' is obviously a big deal for us," said Frank O'Connor, franchise development director at 343. "It's the next chapter in the Master Chief saga. It's also a big deal for us because of the transition to the Xbox One platform. All of the 'Halo' games — more or less — have added something to the Xbox ecosystem.


Bonnie Ross, general manager at 343 Studios, noted that additional plans this year for the "Halo" franchise would be announced June 9 at Microsoft's presentation at the Electronic Entertainment Expo, the largest annual gathering of the gaming industry. At last year's E3, Microsoft showed footage featuring a cloaked figure revealed to be Master Chief encountering a bird-like robot in a desert with the words "2014: Your Journey Begins on Xbox One."


"Halo 4," which was released in 2012 for the Xbox 360, smashed entertainment industry records by making $300 million in its opening week. A live-action digital series, "Forward Unto Dawn," was released alongside "Halo 4." Microsoft previously announced Ridley Scott was executive producing a similar multi-part "Halo" film.


The Xbox One could use a boost from Master Chief. Microsoft Corp. said last month that sales of its latest console had slowed to 1.2 million in the quarter through March, compared to the 3.9 million it sold during the holiday season. The total of 5.1 million was behind the 7 million in sales of the PlayStation 4 by rival Sony Corp.


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Online:


http://bit.ly/1jlndIU



Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://bit.ly/M4KQ9i.


Company ends challenge of tribal casino provision


A developer seeking to build a resort casino in New Bedford has ended its legal challenge to a portion of the state's casino gambling law that gave initial preference to a federally recognized Indian tribe in southeastern Massachusetts.


The 1st U.S. Circuit Court of Appeals said in court documents Friday that an appeal by KG Urban Enterprises had been voluntarily dismissed.


The company filed a federal lawsuit against the state immediately after passage of the 2011 law that allowed for up to three regional resort casinos in Massachusetts, along with one slots parlor. The suit challenged the constitutionality of a provision that had the effect of giving the Mashpee Wampanoag tribe temporary exclusivity in the southeast region, saying that discriminated against potential commercial developers.


The Massachusetts Gaming Commission voted in 2013 to begin accepting casino applications from commercial developers in the region, while continuing to monitor the tribe's efforts to win federal approval for its proposed resort casino in Taunton. Lawyers for the state argued that the panel's vote made the lawsuit moot because KG Urban and other developers were no longer barred from applying for casino licenses.


KG Urban disagreed, noting that the commission had still not guaranteed that commercial applicants in the southeast would be given the same consideration as those in the two other regions designated under the law.


U.S. District Court Judge Nathaniel Gorton threw out the lawsuit in January, but the company appealed.


A spokesman for KG Urban said the decision to end the legal challenge stemmed from ongoing conversations with the gambling commission and negotiations with New Bedford Mayor Jon Mitchell over a potential host community agreement for the proposed casino at the site of a former power plant on the city's waterfront.



Worry settles over Wall Street as stocks stall


Wall Street has caught a case of the jitters.


Employers are hiring at their fastest pace in 2 ½ years, the economy is expected to expand by a robust 3.5 percent this quarter and corporate earnings have hit a record. But you wouldn't know it from the way many investors are acting.


They're pouring money into U.S. Treasury bonds, considered the world's safest asset. They're loading up on dull, but reliable utility stocks. They're dumping holdings that would get hurt most from a stalled recovery, like stocks of retailers and risky small companies.


Just a few months ago, investors thought the economy would grow rapidly this year. Now they're not so sure and shifting money around in surprising ways, a sign that confidence remains fragile five years into a recovery.


"It doesn't take much — an itsy-bitsy sell-off — and suddenly everyone is conservative," says Jim Paulsen, chief investment strategist at Wells Capital Management. "We've climbed a wall of worry throughout this recovery and we're still doing that."


Many experts had expected a recovery that finally felt like one this year. More companies would be hiring, consumers would spend more, and businesses that had slashed expenses to generate profits would now earn them by selling more. Investors would unload safe government bonds, forcing their prices down and their yields, which move in the opposite direction, up.


But the year is unfolding somewhat off script.


Small-company stocks that are often good bets in an accelerating economy are teetering on a "correction," Wall Street parlance for a drop of 10 percent from a high. Many Internet stocks, the ultimate optimistic bet, passed that level weeks ago — and are still dropping. Meanwhile, utilities — unsexy, but stable — have soared 10 percent so far this year, more than double the gain of any of the other nine sectors in the Standard & Poor's 500 index.


Most surprising is the new ardor for U.S. government bonds. Instead of fleeing them as they had late last year, investors can't seem to buy enough. On Friday, the yield on U.S. Treasury notes maturing in 10 years stood at 2.52 percent, half a percentage point lower that it was just five months. That is a big move for bonds.


There's plenty of reason for caution — a stalled housing recovery, for instance, disappointing first-quarter economic growth in the U.S. and Europe, a possible civil war in Ukraine and a cooling Chinese economy. The flood of money into U.S. government bonds may reflect frustration as much as fear. Investors seeking income may be turning to the U.S. because they're unhappy with the paltry payouts on bonds of other rich countries, such as those of Japan and Germany, where yields are even lower.


But something not as easy to pinpoint, more ephemeral, may also be prompting investors to play it safer: Many Americans, still haunted by the financial crisis, don't trust the recovery.


"They're not willing to take risks," says Matt Lloyd, chief investment strategist of Advisors Asset Management. He points to bankers still too scared to lend, CEOs playing it safe by using cash to buy back stocks instead of expanding operations, and consumers not "buying that fifth TV."


Jeff Klingelhofer, an associate bond portfolio manager at Thornburg Investment Management, says investors are second-guessing the health of the economy.


"We've seen these fits and starts of positive economic (news) only to see a few months later disappointing data," he says. So investors are taking a wait-and-see approach.


Many economists suspect the U.S. economy shrank in the first three months of the year, but attribute that to harsh winter weather. They are confident of a big expansion in the current quarter.


A raft of recent reports suggests they might be right. Employers added 288,000 jobs in April, the most in 2 ½ years. Americans have stepped up their spending. And on Thursday, the Labor Department reported that the consumer price index rose a healthy 2 percent in April compared with a year earlier.


Higher inflation can be a sign of economic strength because it usually reflects more spending by shoppers and businesses. But it also is bad for bond investors. The money returned to them when their bond matures will buy less.


But instead of selling U.S. Treasurys, investors bought on the inflation news, pushing the 10-year yield to its lowest in 10 months.


This year's nervousness follows an exuberant 2013, when the S&P 500-stock index surged nearly 30 percent, not including dividends. By some measures, that has left stocks at dangerous highs compared to earnings, another reason for today's skittishness.


This year, the S&P 500 has hit ten new highs, two this week alone. But they have been on tiny gains, and the index itself is only 1.6 percent higher than it was at the start of the year. On Friday, after waffling between small gains and losses, the index ended slightly higher.


If this is the top of the market, it feels different from previous peaks.


In 2000, the stock market's surge was accompanied by books such as "Dow 36,000" which offered tips to profit from a continued climb. The run-up in stocks that ended in 2007 was marked by heavy borrowing by consumers, investors and businesses, with little inkling of the danger ahead.


Today, the mood is sober.


"We don't sense any excitement," says Jim Russell, a regional investment director at US Bank. Instead, he says investors are filled with worry "waiting for the next shoe to drop."



Moody's upgrades Ireland's debt rating 2 notches


Moody's Investors Services says it has upgraded Ireland's credit rating by two notches.


The ratings service says Ireland's economy has picked up momentum in the past few months and should grow considerably faster than the average among countries using the euro currency. It says Ireland's improving real estate market has also significantly reduced the government's contingent liabilities.


It raised Ireland's rating further into investment grade to Baa1 from Baa3 late Friday.


Ireland had to be rescued by an international bailout after it faced economic ruin in 2010, when the cost of a bank-rescue program destroyed its ability to borrow at affordable rates. But it has since regained its financial independence and repaired its fiscal reputation by exceeding a series of deficit-cutting targets and avoiding both labor unrest and protracted recession.



German official mulls breaking up Google


A senior German official has warned that Google may have such a dominant market position that a breakup of the company "must be seriously considered."


Such a move — which would be difficult to enforce because Google is based in the United States — could be a last resort for countries seeking to prevent the Internet search giant from systematically crowding out competitors, said Sigmar Gabriel, who is Germany's economy minister and vice chancellor.


"A breakup, of the kind that has been carried out for electricity and gas grids, must be seriously considered here," Gabriel wrote in an op-ed published Friday by German daily Frankfurter Allgemeine Zeitung. "But it can only be a last resort. That's why we are focusing on anti-trust style regulation of Internet platforms."


Google has for years faced criticism over its dominant position in Europe, where no serious local rival has emerged to challenge its search business. But Gabriel's comments reflect a new sense of urgency among European governments and businesses that the continent's home-grown Internet industry risks being smothered by American rivals.


On Thursday, some 400 companies — including major German and French publishers — announced they were submitting a new anti-trust complaint against Google. The grouping, calling itself Open Internet Project, alleges that Google promotes its own products in search results at the expense of rivals.


Gabriel's spokesman Stefan Rouenhoff said Friday that the Economy Ministry was examining various aspects of Google's business, including also its compliance with privacy rules and its use of legal tax-reduction measures that have irked European governments.


He stressed that a breakup of Google and other Internet companies, while legally possible, would be difficult.


"With a breakup of Google the global dimension would naturally raise questions of enforceability," Rouenhoff told reporters in Berlin. "Such a procedure would take a certain amount of time."


Rouenhoff indicated that instead of breaking up a company Germany seek to introduce new rules at the level of EU anti-trust regulation requiring companies like Google to guarantee that rivals feature in search results.


The head of Germany's anti-trust office said there was traditionally a high threshold for proving that a company was exploiting its market position.


"If one wants to proceed with Google and other companies, legislative measures may need to be considered," Andreas Mundt said.


In his op-ed, Gabriel's painted an alarming picture of the threat posed to society by Internet companies.


"It's about nothing less than the future of democracy in the digital age, and therefore also about the freedom, emancipation, participation and self-determination of 500 million people in Europe," he wrote.


Google dismissed Gabriel's claim.


"We are surprised by the opinion of the minister of economics that companies like Google would harm users, economy and society," Philipp Justus, managing director of Google Germany, said in a statement sent to The Associated Press.


"We have been and are always open for conversations about how to make the most of digitization both for the economy and for consumers," he added.



GM is fined $35 million over deadly defect


Federal safety regulators slapped General Motors with a record $35 million fine Friday for taking more than a decade to disclose an ignition-switch defect in millions of cars that has been linked to at least 13 deaths.


Under an agreement with the Transportation Department, GM admitted it was slow to inform regulators, promised to report problems faster and submitted to more in-depth government oversight of its safety operations.


The fine was the maximum the department can impose.


"Literally, silence can kill," Transportation Secretary Anthony Foxx said, adding: "GM did not act and did not alert us in a timely manner. What GM did was break the law."


Safety advocates said the fine, which is less than a day's revenue for GM, is too small to deter bad behavior by automakers.


Clarence Ditlow, executive director of the nonprofit Center for Auto Safety, said the Justice Department — which is conducting a parallel criminal investigation — should fine the company $1 billion or more and bring charges against GM engineers and their superiors.


"That's the only way you're going to change GM's behavior," he said.


Congress is also investigating GM, and the automaker faces hundreds of lawsuits over deaths and injuries attributed to the ignition switch.


The company has acknowledged knowing that the switches in its small cars had problems since at least 2001. But it was not until February that it began recalling 2.6 million of the cars, mainly Chevrolet Cobalts and Saturn Ions.


Automakers are required by federal law to report safety defects to the government within five days of discovering them.


When jostled, the ignition switches can slip out of the "run" position and shut off the engine. That cuts off the power steering and brakes, potentially causing drivers to lose control. It also disables the air bags.


GM says at least 13 people have died in crashes linked to the problem. Lawyers suing the company say the death toll is at least 53.


The Transportation Department's National Highway Traffic Safety Administration, which has been criticized for failing to take action on the switches despite thousands of complaints from car owners, used a news conference to turn the tables on GM, detailing some of the most damning evidence against the automaker.


Acting NHTSA Administrator David Friedman said a 2009 memo from a parts supplier to GM stated that the switch problem could disable the cars' air bags. Had the government been told that at the time, it would have sought a recall, Friedman said.


Friedman said it was clear many GM employees knew about the bad switch years ago, from engineers to executives. But he said the agency has no records to contradict CEO Mary Barra's claim that she found out about it only recently.


He portrayed the scandal as part of a larger problem with the safety culture at GM, saying the automaker's training materials discouraged employees from using words like "defect" or "dangerous" when reporting trouble up the chain of command.


"The fact that GM took so long to report this defect says there was something very wrong with the company's values," Friedman said.


GM received a $49.5 billion bailout from Washington during its 2009 bankruptcy, and the government was once the automaker's majority shareholder, but it sold off the last of its GM stock in December.


GM stock closed Friday down just 36 cents, or 1 percent, at $34.


GM is already making changes. It has named a new safety chief and has begun checking records for problems that could lead to recalls. So far this year the automaker has issued 24 recalls totaling 11.2 million cars and trucks.


"We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety," Barra said.


Earlier this year, after a four-year criminal investigation, the Justice Department made Toyota pay $1.2 billion for concealing unintended acceleration problems from NHTSA. No individuals were charged with a crime.


While the maximum fine that the Transportation Department can impose was doubled to $35 million this year, Foxx urged Congress on Friday to raise it to $300 million.


Even though GM's bankruptcy shields it from some past liability, the company has hired lawyer and compensation expert Kenneth Feinberg to negotiate settlements.


Carl Tobias, a law professor at the University of Richmond, said the government's action Friday "makes GM's exposure to liability greater, or the damages for which families ultimately settle larger."


Under the agreement, GM has to give NHTSA full access to the results of an internal investigation being done for the company by a former federal prosecutor. It will probably be finished in about two weeks.



Auto Writer Dee-Ann Durbin contributed. She and Krisher reported from Detroit.


The changing role at the top


Used to be that CEOs were hired for their knowledge of the industry, years of experience and the ability to lead with a tight fist. But the role of the top job has changed dramatically over the last several years.


CEOs increasingly are being pressured to cut costs, while growing their business. They're being prodded by investors to push for global expansion, while being asked by customers to be more socially responsible. And at a time when having strategies for social media and data security are becoming integral to doing business, CEOs are expected to keep up with the frantic pace of technology.


The new skill sets that are required for the job mean that corporations are more likely to hire from outside of the organization — and the industry — than they were in years past. It also can mean that the corner office is less forgiving than it used to be: security software maker Symantec, for instance, ousted its CEO Steve Bennett in March, the second time it has pushed out its leader in less than two years.


In fact, in the first four months of the year, 11 CEOS were forced out or fired, says a survey of private and public U.S. companies by Challenger, Gray and Christmas. That's up from 9 CEO terminations in the same period last year. And that doesn't count those who said they resigned, retired or stepped down, but who were actually pushed out.


Moreover, the average tenure for a CEO last year was 7.9 years down from 9.4 years in 2007, the start of the recession, according to Challenger.


"We are in an unprecedented era of challenge at leadership levels," said Mark Cohen, a former CEO of Sears Canada and a professor at Columbia University's Business School. "There's less patience with CEOs now."


The changing priorities have created a challenge for company's boards of directors, which must filter through a slate of candidates. They want to fill to role as quickly as possible to assure investors and customers. But the new requirements and skill sets mean the search is a lot more difficult than it has been in years past.


Here's how the search has gone for a few big companies:


TARGET


Target's announcement last week that it's searching for a new CEO sheds light on a major shift.


Target's CEO search follows the abrupt departure of Gregg Steinhafel in the wake of a massive data breach and a botched up expansion plan in Canada. The nation's third largest retailer said it will search outside the company — and the industry.


If Target hires from outside, though, it would mark the first time in its 112-year-history that its leader wasn't homebred.


"It's a difficult search for a company of our magnitude," said John Mulligan, Target's chief financial officer who is interim CEO, in a recent interview with The Associated Press. But he added: "We will find the right person."


Mulligan said Target is looking for someone with the right skill sets but that understands the culture of Target. Elaine Hughes, founder and CEO of E.A. Hughes, an executive search firm that specializes in retailing, said Target needs to look outside the clothing industry and can't just use the "same Rolodex" as the retail industry keeps using.


MICROSOFT


In February, when Microsoft picked Satya Nadella, a company veteran since the early 1990s, some worried it would reinforce perceptions it wasn't a risk taker as it competes with younger rivals like Google.


Nadella's style of leadership is already winning praises because he is collegial and humble. Among recent moves; the unveiling of Office for iPad, which was well received by the stock market.


That's in sharp contrast to his predecessor Steve Ballmer, who uses the blustery, rally-the troops approach and is known for his larger-than-life displays of emotion


"He's more deliberative and more thoughtful," says Suresh Kotha, a professor at the University of Washington's Foster School of Business in Seattle.


J.C. PENNEY


Penney decided in 2011 to hire Ron Johnson, a former Apple executive, to run the department-store chain.


Johnson vowed to transform the beleaguered company with trendy merchandise and break shoppers' addiction to sales by rolling out everyday low prices.


But the rapid-fire changes alienated Penney's customers, resulting in nearly a billion loss and a 25 percent sales drop in the first year of Johnson's plan.


The board fired Johnson after 17 months and Penney rehired his predecessor, Mike Ullman, who is stabilizing sales as the company searches for a permanent replacement.


Penney declined to comment on the search for its new CEO. New York-based retail consultant Walter Loeb speculates Penney could hire an industry insider: Roger Farah, who announced earlier in the month that he was retiring from Ralph Lauren after 14 years. Farah was most recently executive vice chairman.


FORD


In 2006, Ford hired Alan Mulally away from Boeing. At the time, the automaker passed over internal candidates, including Mark Fields, who takes over the reins on July 1 when Mulally retires.


The decision to hire an outsider proved to be wise. When Mulally was hired, Ford was on its way to a $12.6 billion annual loss and management was widely seen as dysfunctional.


Mulally gained superstar status by ending the infighting between executives and regions that had long plagued the company. He developed a plan to get Ford back to profitability, dismissed executives who wouldn't follow the plan or work together and borrowed billions to keep the company out of bankruptcy.


Taking over for Mulally, Fields, who was instrumental in that turnaround, will inherit a healthy company. But he will have to push the company for bigger growth.


------


Tom Krisher and Dee-Ann Durbin in Detroit and Ryan Nakashima in Los Angeles contributed to this report.



Australians divided on tough budget medicine


Australia's robust economy, triple-A credit rating and low debt has been the envy of other developed nations that have struggled to recover since the global recession. So when the government earlier this week announced a debt crisis requiring drastic spending cuts, Australians could be forgiven a certain amount of disbelief.


The government's austerity budget was so contentious it has raised the possibility of fresh elections because Prime Minister Tony Abbott's conservative coalition faces stiff resistance in the Senate to its harshest measures.


Abbott blamed out of control debt on Tuesday when his government announced plans to slash welfare, cut public service jobs and raise taxes to reduce a deficit forecast to reach 49.9 billion Australian dollars ($46.7 billion) in the current fiscal year ending June 30.


While the budget gap is the ugliest in recent memory for Australia, the government's debt is a mere 20.5 percent of gross domestic product, far less than the U.S. at more than 100 percent of GDP and Japan, where public debt is approaching 250 percent of the economy. Australia is one of only eight countries that have a triple-A credit rating with a stable outlook from all three major rating agencies.


Those credentials make it difficult to convince Australians there is a crisis, but the government insists that without big changes the country is on a slippery slope to financial oblivion.


"Using some language like the government has been using might serve a purpose in focusing minds on rebalancing of the budget, but in reality, there's no crisis to see, no emergency to see," Australian National University economist Paul Burke said Friday.


Australia does face some challenges in balancing the books. The mining boom that buoyed Australia's economy for the past decade and paid for a series of personal income tax cuts has fizzled in the past two years, wiping billions of dollars from the government's tax revenue. The government had reduced net debt to zero before the 2008 financial crisis. Since then, it has taken just a few years for debt to reach its current 20 percent of GDP level.


The government's measures will fix the "debt and deficit disaster" created by the previous Labor Party-led government, Abbott told reporters Friday.


Those plans include cutting more than 16,000 government workers and freezing welfare payments for two years, and then indexing them to rise with inflation instead of the faster-growing measure of average male earnings


The government also plans to strip AU$80 billion from hospitals and schools over a decade, shifting the costs to the states to pick up and raising the prospect of an increase in Australia's 10 percent consumption tax. Australians on high salaries will face a temporary extra tax on their incomes.


The austerity is projected to reduce the deficit to AU$29.8 billion next year and AU$2.8 billion in 2017-18. It would be in surplus from 2018-19.


The government says it would have been tougher but slowing economic growth meant it had to temper its cuts.


Abbott's government needs the support of Labor, the left-wing Greens party or the right-wing Palmer United Party to get its measures through the Senate. All three parties have said they will reject various measures. They accuse the government of confecting a crisis to further an ideological agenda of reducing welfare.


Senate rejection of budget bills could result in fresh elections, although most observers say the passage of the budget measures in amended form was a more likely outcome.


"If you want an election, try us," opposition leader Bill Shorten warned Abbott in Parliament on Thursday.


Quentin Grafton, an economist at Australian National University, also believes there's no crisis. But he said it could be "misleading" to argue there's no need for action on the basis that Australia's situation isn't as bad as debt-mired Europe.


"We could end up that way quite easily and certainly the numbers were putting us in that direction," he said. "I think it's an impending crisis rather than an immediate crisis."



West Wing Week 05/16/14 or, “Go Solar!”

This week, the President praised the power of solar, honored this year's TOP COPS, awarded the Medal of Honor and traveled to New York for the opening of the National September 11 Memorial & Museum.


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Hospitals reach out to attract affluent immigrants


The menu includes pork or chicken dumplings, fried rice or chicken congee soup with jasmine rice and ginger. It's an enviable repast that diners take in bed — hospital beds.


When it comes to ordering meals at Houston's Memorial Hermann Southwest Hospital, immigrant patients can choose from dishes similar to what they might eat at home: dumplings or noodles for Asian palates, curry to accommodate Indian tastes.


These and other choices at medical facilities nationwide reflect intense competition to attract one of health care's most desirable demographics — affluent, foreign-born patients with generous insurance coverage or cash to pay out of pocket.


The menu is just part of the outreach. The Houston hospital also has redecorated patient rooms, subscribed to foreign-language TV channels and even changed the color of hospital paperwork to reflect cultural preferences.


Hospitals "are recognizing that they have to begin to gear their services and products toward more minority populations," said Rick DeFilippi, chairman of the board for the Institute for Diversity in Health Management, a subsidiary of the American Hospital Association.


The effort to cater to minority and immigrant groups began decades ago in inner-city hospitals, but it's now becoming crucial to private institutions' quest for paying customers. Immigrants from China, Vietnam and India have median household incomes above the national average of about $51,300 — with immigrants from India earning more than double, according to the U.S. Census Bureau.


Memorial Hermann began its initiative in 2009 by reaching out to Vietnamese and Chinese patients, for whom language was a major barrier.


The program was so successful it was expanded to include South Asian patients, many from India and Pakistan. A new menu includes four types of curry, and the hospital now allows for the kind of large family gatherings many U.S. hospitals frown on.


In California, the El Camino Hospital developed a South Asian Heart Center and a Chinese Health Initiative, emphasizing cultural sensitivity and prevention tailored to a community's specific ailments, such as high blood pressure, hepatitis B and certain cancers.


The American Hospital Association believes such programs are key. It has set three goals for 2020 that include pushing hospitals nationwide to hold cultural sensitivity training for all employees and collecting data on illness and ethnicity to tailor medical care. The group also wants to ensure hospital administrations and boards better reflect populations they serve, DeFilippi said.


Dr. Jianwei Feng, a senior cardiologist at Memorial Hermann Southwest, remembers a Chinese immigrant who came to see him a few years ago complaining of chest pains. The patient, whose English was poor, put his palm between his chest and abdomen to indicate where it hurt. Doctors ran a series of abdominal tests and sent him home. He returned days later with a full-blown heart attack.


Incidents like that inspired Feng and hospital administrators to build the Asian program.


First, they hired interpreters, who now number about 80 hospital-wide. Then, they hired a physician liaison to work with doctors on referring patients from Houston's nearby Chinatown, who Feng said now feel more comfortable referring their patients.


The changes mean that Tan Nguyen, a 60-year-old Houston man originally from Saigon, can recover from heart surgery while watching a Vietnamese news channel. He eyes the menu of dumplings and fried rice, and exclaims "I love it."


"I feel very comfortable," Nguyen said. "It seems like home."


When patients are comfortable and eat well, they heal better, Feng said.


At first, Memorial Hermann concentrated its efforts in one elderly ward. It had red walls, bamboo floors, large refrigerators for food brought by visitors and Chinese and Vietnamese TV channels.


Even the patient-information folders had to be right — white, associated with death in Asian culture, was out. Red, the color of happiness, was in.


Water had to be room or tea temperature because Asians don't drink cold water like Americans, said Bruce Luu, the patient liaison.


Managers soon expanded the services to the entire hospital, said Carla Kuaiwa, the administrator for Asian services.


When they decided to expand the program to include South Asians, they discovered different issues, she said.


Although many South Asians speak English, they have a cultural gap with Americans. Families want large visits. And the eldest son — not necessarily the patient — is often the decision-maker. Women sometimes don't want a male doctor entering the room without permission or a female escort.


As an overture to the community, the hospital hosted a South Asian fair last summer, Kuaiwa said. Now they want to dedicate a corridor to the art, history and culture of these countries.


"We want to bring the culture to them here at the hospital," she said.



Judge: Marijuana licensing process can proceed


A state judge has rejected efforts to temporarily halt Massachusetts' process for licensing medical marijuana dispensaries.


Suffolk Superior Court Judge Mary K. Ames denied requests by 1 Releaf Inc., Apex Compassion & Wellness Center and the Striar Center for Compassionate Care to prevent the state from completing the marijuana dispensary licensing process until their cases are adjudicated, according to recent documents filed in the cases.


The three companies had been among 100 applicants, but were not among the 20 chosen by the state Department of Public Health to earn a provisional license in January.


The state faces court challenges from at least two other companies that did not earn a provisional license. Those cases are also pending. The court challenges follow questions over how winning applicants were scored and vetted.



Montana miner inks sales contract with UK company


Montana's largest mining company says it has reached a five-year contract with a maker of pollution control equipment to purchase all of its mined palladium and a significant share of its platinum.


Stillwater Mining Co. of Billings on Friday announced the agreement with Johnson Matthey PLC, a United Kingdom-based chemicals company.


Matthey refines precious metals and manufactures catalytic converters used to control pollution from motor vehicles. Platinum and palladium are used in the converters.


Stillwater is the only U.S.-based producer of the metals. It has two mines in the Beartooth Mountains in south-central Montana, and a recycling plant and smelter in Columbus.


The company's share price was up over 3 percent at $16.17 in mid-day trading Friday.



JC Penney and RadioShack are big market movers


Stocks that moved substantially or traded heavily Friday on the New York Stock Exchange and the Nasdaq Stock Market:


NYSE


J.C. Penney Co., up $1.36 to $9.73


A key sales figure rose during the department store operator's first quarter, an encouraging sign for the troubled company.


Darden Restaurants Inc., down $2.20 to $48.49


The restaurant operator, which owns Olive Garden, said it will sell its Red Lobster chain to an investment firm for $2.1 billion.


Nordstrom Inc., up $9.06 to $70.55


The upscale department store operator reported a strong first quarter thanks to better sales.


World Wrestling Entertainment Inc., down $8.66 to $11.27


Shares of the entertainment company fell as investors worried about its new TV deal and prospects for its monthly subscription service.


Verizon Communications Inc., up $1.11 to $49.07


Warren Buffett's company Berkshire Hathaway disclosed a new investment of 11 million shares in the communications company.


RadioShack Corp., down 11 cents to $1.22


Ratings agency Fitch cut its rating on the electronics retailer, saying it may not have enough cash flow to make it through the year.


Nasdaq


Digital Cinema Destinations Corp., up 45 cents to $5.40


The movie theater company said that it has agreed to sell itself to its larger rival Carmike Cinemas Inc.


Autodesk Inc., up $3.85 to $51.67


The maker of design software used by engineers, architects and digital artists, posted strong results for its first quarter.



Rai’s Jerusalem trip will have negative effects: Hezbollah


BEIRUT: Hezbollah said Friday that a controversial visit that Maronite Patriarch Beshara Rai plans to make to occupied Jerusalem later this month would have negative consequences for Lebanon, adding that it hoped Rai would take the party’s opinion into consideration.


A Hezbollah delegation expressed its stance on the upcoming trip during a meeting with Rai at the seat of the Maronite Patriarchate in Bkirki.


“We spoke about the perils and the negative consequences of the visit on the Lebanese level and on [its results regarding the] Zionist entity [Israel] and the region,” Sayyed Ibrahim Amin Sayyed, head of Hezbollah’s political council, said after the visit.


“We hope that our position will be taken into account,” added Sayyed, who headed the Hezbollah delegation that visited Rai.


“We are used to discuss things directly with the patriarch, and we explained to him our opinion on the visit to the Holy Land,” Sayyed said.


He said that Rai had cited religious considerations for his visit, particularly in terms of the significance of Jerusalem for Christians, aside from the political fallout.


Sayyed said that his party was not suspicious of the goals Rai aimed to fulfill with his visit.


Later in the day, Hezbollah Deputy Secretary-General Sheikh Naim Qassem described Rai’s visit as a “problem” in a television interview.


It is the first time Hezbollah has commented on Rai’s trip, which sparked a controversy in the country when announced in early May.


The delegation included Ghaleb Abu Zainab, a member of Hezbollah’s political council, and politburo member Mustafa al-Hajj Ali.


Rai has said he would join Pope Francis during a tour of the Holy Land on May 24-26, a visit that would make Rai the first Maronite patriarch to travel to Israel since it was founded in 1948.


Many in Lebanon said the visit would effectively represent a normalization of ties with Israel, which is in a state of war with Lebanon.


But Rai has defended his trip, saying its main aim was to stress the Arab identity of occupied Jerusalem and to encourage Palestinian Christians to retain their land.


The Vatican last week said Rai’s visit was a personal initiative and that he was not part of the official delegation touring the Holy Land.


Palestinian President Mahmoud Abbas telephoned Rai earlier this month and praised his planned visit, saying it contributed to solidifying the Arab identity of Palestine and occupied Jerusalem and bolstered Muslim-Christian brotherhood. The Palestinian leader denied that Rai’s step represented a normalization of ties with Israel.



Lebanon gets first taste of innovative Raspberry Pi technology


DHOUR CHOUEIR, Lebanon: In the hallway of Dhour Choueir High School, perched high up in the craggy hills of Mount Lebanon, teenagers cluster around a fist-sized computer chip with wires protruding from various sides.


On the attached screen, a monkey walks from side to side catching bananas that fall from the sky, with a speech bubble that says “yummy” appearing every time he succeeds.


In the middle of the crowd, a 17-year-old explains how it works. But he’s not talking about how to play the game, he’s talking about how to make it.


This is Raspberry Pi, an innovative new education tool that can teach children as young as 5 how to create computer code and program, which lets them create anything from video games to music. The device costs $25 – way less than a computer, laptop or tablet – and all you need to plug in is a screen (for example, a TV), a keyboard, a mouse and some power.


Created in Britain by a group of men who feared the younger generation was losing the ability to control the technology mushrooming around it, Raspberry Pi has snowballed from an idea in 2006 into a movement that is taking the world by storm.


With the help of UNICEF, the International Education Association, the Education Ministry and the Muna Bustros Foundation, Raspberry Pi was officially launched on Friday in the Middle East as part of the Pi For Learning program.


“This is the future,” said 17-year-old Ryan Loukih, a student at Dhour Choueir High School. “The whole world is going toward coding and programming, and Raspberry Pi simplifies it so that everyone can use it. There are endless possibilities.”


The pilot project in the Lebanese public school in Dhour Choueir teaches students how to use a visual programming language called Scratch, and the older students that have been experimenting with it over the last few months were eager to show off the fruit of their work.


“This game is like a basic version of pong,” explained Ian Saba, 17, pointing to a screen where a ball was bouncing between two horizontal lines – essentially a game of ping pong seen from above.


“With coding, we can control the rules and bend them to our will, so if he is winning,” Saba smiled and gestured to his work partner, “I can press a button and change the direction of the ball with no warning.”


For IT teacher Viana Mansour, the introduction of the devices to her computer lab has been revolutionary.


“They thought that computers were all about social media sites like Facebook and so on, now they know that they can make their own games, animations, music – anything.”


“Children are way more excited to come to IT now.”


As well as being a stimulating change for Dhour Choueir High School’s students, the introduction of Raspberry Pi to the institution is also breaking new ground in the country and the wider region.


“Everyone in the world is looking at this experiment,” Candace Johnson, an American angel investor and high-profile telecommunications entrepreneur, said to those gathered at the launch. “I built my own transistor radio when I was 6, and it put me in a place where I was able to build the world’s largest satellite system.”


“If we give young people the ability to code, they will build things in the future that we can’t even imagine now.”


This message was echoed by UNICEF’s new innovation specialist, James Cranwell-Ward, a key driver behind the agency’s plan to bring Raspberry Pis to schools in neglected parts of Lebanon.


“You could potentially give birth to and establish a whole generation of technologists who could go on to build the next Facebook,” he told The Daily Star.


UNICEF is particularly hoping to target school-aged Syrian refugees, some 300,000 of whom are receiving no education at all because of the lack of capacity, resources and funds.


“There needs to be some sort of out-of-the-box solution to fill that need,” Cranwell-Ward said.


Using Raspberry Pi, he added, is both cheaper and more engaging than school textbooks.


“We will be using the RP as a vehicle to teach basic numeracy, Arabic and science,” he said. “The cost of an RP kit is low [around $100] and includes a screen, keyboard and mouse, everything you need for a learning terminal. The cost of that is far less than printing, shipping and transporting a textbook.


“You also don’t need the Internet ... it’s all set up to be done offline.”


When it comes to education, for both Lebanese and refugees, it seems innovation has become the name of game.



Lebanon must free itself from regional yoke


When considering regional politics, optimism must be tempered with a hearty dose of realism. While many have speculated about how a Saudi-Iranian rapprochement – signs of which have emerged recently – would accelerate holding Lebanon’s presidential election, any detente between the nations is bound to be protracted.


Moreover, Lebanese authorities must find the will to make autonomous decisions for their nation without pandering to the policies of patron countries.


Amid the looming possibility of a presidential vacuum in Lebanon, as Tehran-backed March 8 groups and the Riyadh-supported March 14 alliance fail to come to an agreement on one candidate, many observers rejoiced when Iran this week welcomed an official invitation by Saudi Arabia to discuss a host of disputed issues. They expect the thaw in ties to have a direct impact on the election.


But Lebanese politicians are likely to fall unconscious if they hold their breath while waiting for these regional rivals to shed their enmity, say well-informed sources.


“Let’s not get ahead of ourselves ... I don’t think a rapprochement is in progress [between Saudi Arabia and Iran] that will fix Lebanon’s problems,” one source told The Daily Star. “I think that a rapprochement is going to commence, but it will be a very difficult dialogue. ... It will take time.”


Paris for its part, hopes Lebanon will work to divorce itself from the convoluted web of regional politics.


France believes that Lebanon has the capacity to make its own choices with a great degree of independence, if it wanted to. But unfortunately, that’s not the case,” the source said.


Still, international observers were encouraged by the formation of a government last February and hope that a similar accord between the March 8 and March 14 camps can be reached to elect a president.


“There was no international decision to impose anyone or block them [from joining the Cabinet],” the source said.


“The current government was formed by a Lebanese equation.”


Traditionally, France has had an influence on Lebanese politics as the country was under French mandate for over two decades. But the Elysee has no candidate in this election, the source stressed.


“ France is not for any candidate, nor is is against any candidate,” the source said. “ France is only concerned that [Lebanese] institutions function properly for the people.”


Presidential candidate Samir Geagea, who is backed by the March 14 coalition, and potential contender Michel Aoun both have storied ties to the Hexagon.


Geagea met with former French President Jacques Chirac in the Elysee Palace in 2007 and is currently on an international “working trip” that will include a stop in Paris and Riyadh.


For his part, Aoun spent around 15 years in exile in France before returning to Lebanon in May 2005.


During an unsuccessful Parliament session to elect a president on April 23, Geagea garnered 48 votes only, well below the 86 votes required for a presidential hopeful to win in the first round of elections.


For his part, Henry Helou, who is backed by Walid Jumblatt’s bloc, got only 16 votes. Aoun has yet to officially announce his candidacy.



Bou Saab: Official exams to be held on time


BEIRUT: Official exams for Grade 9 and 12 will be held on time, Education Minister Elias Bou Saab announced Friday, seeking to quash speculation that they may be delayed due to possible public sector strikes over the pay hike issue.


“We have agreed to extend the academic year, complete the academic curriculum and hold the official exams on time,” Bou Saab said following a meeting with a delegation from the Union Coordination Committee, a coalition of teachers and public sector employees.


He said a final decision would be made after the Cabinet meeting, which is set for May 27.


Bou Saab assured students as well as parents that there would be “no more [union] strikes until the end of the school year.”


“If we are not able to hold official exams, students won’t be able to enroll in universities,” he warned.


The minister thanked the teachers for agreeing to the decision and stressed the rights of its members, “especially since all political parties have acknowledged the premise [of the wage hike], but they raise the issue of how to finance [it].”


No political party has said it is against the adoption of the salary increase, he added, the disagreement is over how to fund it.


“But they [political factions] have to find a solution between now and May 27,” he said.


Speaker Nabih Berri Wednesday adjourned discussions on the public salary scale until May 27 after MPs failed to agree on how to finance it, as thousands of public school teachers and civil servants rallied to urge lawmakers to pass the bill.


Nehme Mahfoud, head of the Private Schools Teachers Association, assured students that the UCC supported them.


“UCC is keen on the students’ rights more than anyone,” he said at the joint news conference.


UCC head Hanna Gharib, who also attended the news conference, said the union would “be a rescue ship for the country in order to give both students and teachers their rights.”


Additionally, Bou Saab confirmed the need to conduct exams for part-time teachers before they become full-time employees.


“We support ending the farce that is part-time work, and we hope to conduct these exams through the Civil Service Council and make them full-timers,” he said.


Bou Saab also stressed the need for the election of a president by the May 25 deadline in order to avoid a vacuum, which he said would have a negative impact on the whole country.


He called for politicians to “respect the constitutional elections and elect a president before May 25 so we can give hope to the students and the future that lies ahead.”



ISF targets road safety with new action plan


BEIRUT: Lebanon’s Internal Security Forces launched a pilot road-safety project Friday to begin monitoring and enforcing traffic laws on a stretch of the coastal highway.


The project, “We got together so that no road separates us,” will begin at the end of May and will involve collecting various types of traffic data on the stretch of highway between Jbeil and Antelias, where the highest number of accidents in the country are reported, according to figures provided by the Red Cross.


The action plan for the project says the ISF will start to enforce traffic laws related to speeding and drunk driving, which are penalized according to the new traffic law.


The ISF will also prepare a road-safety curriculum, raise awareness about the dangers of speeding and driving under the influence of alcohol, improve the delivery of first aid to accident victims and upgrade road-safety infrastructure.


The project brings together a number of ministries and organizations from the public and private sector as well as from civil society.


“It’s the first time all these groups have sat together at the same table,” the regional director of the Global Road Safety Partnership, Samar Abou Raad, said at a news conference at the ISF headquarters in Ashrafieh.


The Global Road Safety Partnership is overseeing the project, which is part of the EU-funded EuroMed Road Safety Program. Abou Raad added that the project would be supported over an extended period and “would not just stop after one week.”


Marcello Mori, head of infrastructure and local development for the EU’s delegation to Lebanon, said that road safety was linked to socioeconomic development and good governance.


The project has also designated roles various community components can play to emphasize safety.


The public sector has been asked to “act as a role model for the citizen ... pushing for continuous improvement in road safety,” among other responsibilities.


The private sector was tasked with helping by “sharing road safety good practices and initiatives” with family and friends and by “providing technical expertise to partners from different sectors.”


Civil society, on the other hand, should advocate “for change and improvement” in legislation by building campaigns based on scientific evidence, and by “offering constructive criticism.”


According to a press release for the event, recent studies concerning road safety in Lebanon have shown that the data collection process in the country “needs improvement in terms of accuracy and reliability,” something that influenced the ISF’s Advisory Board decision to implement the pilot project.



National Museum’s basement rises from the dead


BEIRUT: Descending into the National Museum’s basement, one is instantly struck by the dimness, the low ceiling and the large empty space – a striking contrast to the bright lights, high ceiling and rows of unique exhibits just one level up.


Plans to rehabilitate the museum’s underground rooms have been on hold since Lebanon’s 1975-90 Civil War. When the war was over, refurbishment initiatives for the basement were impeded primarily by a lack of funding. That was until Friday, when a project was launched to rehabilitate all 700 square meters of the basement.


“It will all become just like the museum you see here,” Anne-Marie Abeishe, curator of the museum, told The Daily Star as she gestured to the art on the ground floor.


The Italian Development Cooperation, a government organization, is providing 1.2 million euros (about $1.6 million) of funding for the project, with work scheduled to begin next month and finish in a year and a half.


The pieces to be put on show, some of which have never been seen before, are all funerary art – anything associated with the dead and burial rites.


“All of the funerary art will ... begin in 3,000 B.C., maybe even the prehistoric period until the Mamluk period,” Abeishe said. “It will be funerary art through the centuries.”


The pieces already belong to the museum, so the donation will cover the cost of exhibition tags, lighting, visiting paths and podiums. It will also fund the documentation, presentation and promotion of the funerary collection, which will in turn allow for the recruitment of young Lebanese professionals in the field.


The exhibits will include the biggest collection in the world of sarcophagi anthropoid – a sarcophagus featuring the relief of the entombed person’s head – and the colorful Roman frescoes of the Tomb of Tyre.


“The collections there remained hidden from the eyes of the public for a long time,” Culture Minister Raymond Areiji said during the tour Friday.


Following the rehabilitation, he said, the floor would “proudly expose the vestiges of our millennia-old civilization.”


“It is a wonderful museum,” Italian Ambassador to Lebanon Giuseppe Morabito said, likening its style to that of Italian modern art and noting the cultural history shared between the Romans and the Phoenicians.


“Culture is a good investment for Italy and for Lebanon to bring more people [to the country], to create positive change and jobs,” he added.


The ambassador said the museum’s physical reconstruction testified to the “strenuous capacity of this country to face conflicts and social friction without losing track of its valuable origins, history and pride.”


Director General of the Italian Development Cooperation Giampaolo Cantini added that Lebanon’s cultural heritage was of great scale and value, saying the famed museum “discloses with elegance the various civilizations that populated this land and that enabled the creation, along the ages, of the incredibly diverse culture characterizing Lebanon till now.”



China, Russia on verge of gas deal


China plans to sign a multibillion-dollar deal to buy Russian gas during a visit by President Vladimir Putin next week despite U.S. pressure to avoid undermining sanctions on Moscow over the Ukraine crisis.


Washington has appealed to Beijing to avoid making business deals with Russia, though American officials acknowledge the pressing energy needs of China, the world's second-largest economy.


Negotiations that began more than a decade ago had stalled over price. But analysts say Moscow, isolated over its role in Ukraine, faces pressure to make concessions in exchange for an economic and political boost.


"We are still exchanging views with Moscow and we will try our best to ensure that this contract can be signed and witnessed by the two presidents during President Putin's visit to China," a deputy Chinese foreign minister, Cheng Guoping, told reporters on Thursday.


Putin's visit to China is also likely to highlight the diverging fortunes of the two powers. China is on track to overtake the U.S. as the world's biggest economy in the next decade and is increasingly assertive in political relations with its neighbors. Russia's economy is reeling from its dispute with the West over Ukraine's tilt toward the European Union, a shift that inflamed Moscow's insecurities about declining influence.


Putin is due to meet Chinese President Xi Jinping during a two-day conference on Asian security that starts Tuesday in Shanghai. Cheng noted they reached a preliminary agreement on gas sales when Xi attended the Winter Olympics in Sochi, Russia.


Companies from the two sides "have already reached an agreement on the majority of the contents of their cooperation," said Cheng. "The main difference between them still lingers on the price of natural gas."


Beijing has to weigh the economic benefits against possible strained ties with Washington and the European Union, but analysts say Chinese leaders are leaning toward a deal. China faces chronic gas shortages and talks on the proposed 30-year contract between Russia's government-controlled Gazprom and state-owned China National Petroleum Corp. began long before the Ukraine crisis. Chinese leaders are also eager to get Russian gas to help curb pollution by reducing reliance on coal.


A tentative agreement signed in March 2013 calls for Gazprom to deliver 38 billion cubic meters of gas per year beginning in 2018, with an option to increase that to 60 billion cubic meters. Plans call for building a pipeline to link China's northeast to a line that carries gas from western Siberia to the Pacific port of Vladivostok.


"It's not something that can be switched off because the U.S. is upset about a more recent development," said analyst Rachel Calvert of consultancy IHS.


Analysts Leslie Palti-Guzman and Emily Stromquist of Eurasia Group put the likelihood of a gas deal finally being concluded this month at 80 percent.


The deal would be an "important strategic gain" at a time when the Ukraine crisis is fraying Russia's political and economic tie with the West, they said in a report.


During a visit last week to Beijing, U.S. Treasury Secretary Jacob Lew told Chinese leaders that Washington doesn't want to see anyone undermine sanctions by making trade or investment deals with Russia.


"We discussed, as we do with many nations, the impact our sanctions are having and the importance that they are not offset by others coming in," Lew said in a statement sent to reporters by his office.


China rejects the sanctions imposed by the United States and European Union on Russia during the Ukraine crisis.


"The U.S. side overemphasizes the use of sanctions," a deputy Chinese finance minister, Zhu Guangyao, said after Lew's meetings.


Washington and the EU have imposed asset freezes and visa bans on 61 people and several companies linked to Putin's inner circle in connection with the unrest in Ukraine.


The sanctions add to economic problems for Russia, which faces slowing growth and capital flight as companies and individuals pull money out of the country.


The Russian finance ministry said $51 billion flowed out of the country in the first quarter of the year. The president of the European Central Bank, Mario Draghi, last week cited estimates that as much as 160 billion euros ($220 billion) had left the country since the Ukraine crisis began. Ratings agency Standard & Poor's has cut its rating on Russian government debt to one notch above junk status.


Russia may make a "big concession" on the price it charges China, said Li Xin, a foreign affairs specialist at the Shanghai Institute of Foreign Studies. He said Moscow has been looking east for new customers while the sanctions encourage Europe to reduce reliance on Russian gas.


"Energy cooperation is a long-term strategy for both China and Russia," he said, "and it's not related at all to the Ukraine situation."



AP researcher Yu Bing contributed.