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Friday, July 21, 2006

Indonesia’s President, Susilo Bambang Yudhoyono, visited the area worst hit by the tsunami that struck the Indonesian island of Java Monday afternoon. Mr Yudhoyono toured the small town of Pangandaran meeting people who were staying in a temporary camp. Many of them are too scared to return home after the huge wave killed nearly 550 people. The tsunami was produced by an underwater earthquake with a magnitude of 7.7 on the Richter scale.

At the camp, Mr Yudhoyono told one woman to “be strong”. According to a relief worker, about 3,000 people have taken refuge at the site, but only about 500 of them have lost their homes. She said people are too scared to go home because they live on the coast, a sentiment shared by one woman who told AFP: “I did not lose my home, and my husband and child are safe, but we are still traumatised by the tsunami and are too afraid to return home in case another one comes.”

West Java Governor Danny Setiawan told journalists that officials are persuading people to return home, and he said a return to normality “could take five to six years”.

Aid workers are working to provide relief to the 15,500 people who have been left homeless as a result of the two-meter high wave. Yesterday, 15 tonnes of rice and 1,600 boxes of instant noodles were dropped, but some residents have said government assistance is necessary for them to regain their livelihoods. One woman told Reuters, “I don’t have anything, only 5,000 rupiah (£0.30, $0.55) in my wallet. The government should give us money to buy houses and a boat.”

It is estimated over 300 people are still missing, and the army and police are using helicopters, boats and mechanical diggers in the hope of recovering survivors. Lieutenant Colonel Tri Yuniarta has told his 350-strong rescue team in Pangandaran to finish collecting bodies trapped under debris by next Monday.

The Indonesian government has been criticised for failing to inform residents that a tsunami was looming. After the underwater earthquake was detected, US and Japanese agencies issued warning notices, but the government has admitted it was unable to transmit the bulletins to coastal areas. Speaking yesterday, Mr Yudhoyono vowed to hasten efforts to build an early warning system planned after the 2004 Asian tsunami. “We want to expedite efforts to get infrastructure for the tsunami warning system in place,” AP quoted him as saying. “I will work with parliament to get the budget”.

Survivors have described the tsunami, which struck a 200km stretch of Java‘s southern coast. A Belgian tourist said he was in a beach side bar when the wave hit. “I saw this big cloud of dark sea water coming up to me”.

Indonesia is situated on the Pacific Rim of Fire where 90% of the world’s earthquakes and 81% of the world’s largest earthquakes occur.

Wednesday, March 5, 2008

The implosion of a relationship between Wikipedia founder Jimmy Wales and journalist Rachel Marsden has resulted in controversy and international headlines. Associated Press and ABC News have also reported on questionable activity by Wales involving Wikimedia Foundation expenses. The Wikimedia Foundation is a donor-supported non-profit organization which runs Wikipedia.

Marsden had contacted Wales two years ago about concerns she had over the article about her on Wikipedia, and Wales determined the article was not compliant with Wikipedia’s standards. The tech blog Valleywag revealed Wales had a personal relationship with Marsden, and posted supposed transcripts of their instant message conversations on its site, www.valleywag.com. Wales and Marsden met in February, and The Times reported that “An apparent transcript of their conversations before that meeting suggests that, although Mr Wales had withdrawn from the editing process, he was still influencing the editors.” The Times quoted Wales from the chat logs as having stated to Marsden “The truth is of course a much worse conflict of interest than that; but that will do.” — in reference to his conflict of interest regarding Marsden’s article on Wikipedia.

Wales posted a public statement on Saturday on Wikipedia addressing the matter, and stated that his relationship with Marsden was over: “First, while I find it hard to imagine that anyone really cares about my sex life, the facts are: I am separated from my wife. I considered myself single at the time of my one meeting with Rachel Marsden on Feb. 9, 2008 … I am no longer involved with Rachel Marsden. Gossipy stories suggesting that I have been in a relationship with her ‘since last fall’ are completely false … I care deeply about the integrity of Wikipedia, and take very seriously my responsibilities as a member of the board and as a member of the Wikipedia community. I would never knowingly do anything to compromise that trust.” With regard to the conflict of interest in Marsden’s article, Wales had acknowledged to a team of Wikipedia editors in February 2008 that he and Marsden “became friends … and that we would be meeting about that,” and stated “I recused myself from any further official action with respect to her biography.”

On Sunday, The Canadian Press reported that Marsden had posted photos of herself on Ebay, and was selling items that Wales had left at her New York City apartment. In her Ebay posting, Marsden stated: “Hi, my name is Rachel and my (now ex-) boyfriend, Wikipedia founder Jimmy Wales, just broke up with me via an announcement on Wikipedia … It was such a classy move that I was inspired to do something equally classy myself, so I’m selling a couple of items of clothing he left behind, here in my NYC apartment, on eBay. Jimbo was supposed to come visit me in a couple of weeks and pick up some of his stuff, but obviously that won’t be happening now.” Marsden told The Canadian Press “It didn’t really help matters that Jimmy chose to announce the breakup to the entire world via Wikipedia (which apparently now is an online encyclopedia that doubles as a personal soapbox?) rather than to me directly (which he did much later, in an instant message discussion).”

Marsden placed a t-shirt and sweater which she said were left at her apartment by Wales up on Ebay, and started the bidding for each at ninety-nine cents, with the auctions set to end on March 12. By Monday, bidding on the t-shirt had reached US$300, and by Tuesday the highest bid had reached $12,200. In an email to The Globe and Mail, Marsden stated “My only focus right now, to be really honest, is on my career and finding a way to get back into print, TV, or radio here in NYC,” she wrote. “All of this other personal stuff is just an unfortunate distraction.”

Jay Walsh, the Wikimedia Foundation’s head of communications, told the San Jose Mercury News that Wales’ actions in relaying Marsden’s concerns about her Wikipedia article to a team of trusted editors was within his “routine” role. When asked by the San Jose Mercury News if Wales’ actions regarding the Marsden article could compromise his role with the Wikimedia Foundation and Wikipedia, Walsh responded “No, absolutely not.”

On Tuesday, ABC News carried a story by Wired News reporter Megan McCarthy regarding allegations of “excessive spending” by Wales, and Associated Press also reported on questions involving Wikimedia Foundation expenses. McCarthy reported that former Wikimedia executive Danny Wool, who had left the foundation last year, criticized Wales’ use of Wikimedia Foundation expenses in a blog post. Wool stated that Wales had tried to expense $300 bottles of wine, a $1,300 dinner for four at a Florida steakhouse, and visits to Moscow massage parlors to the foundation, and that the foundation rescinded Wales’ corporate credit card in 2006. Wool also stated that Wales paid the foundation $7,000, after being short $30,000 on receipts for expenses.

Wool told EPICENTER that “There were occasions where he used [the Wikimedia Foundation] for personal advancement under the guide [sic] of the mission. And, as someone who was in there for the mission part of it, I found that rather distressful.” Wool commented in an interview with the San Francisco Chronicle: “Originally, it was carelessness … But as things developed, it became more apparent and obvious that he was taking advantage of the foundation credit card. It was almost like his personal piggy bank.”

In an instant message exchange with Associated Press, Wales denied that the Wikimedia Foundation had taken away his corporate credit card, and asserted that he had made the decision to stop expensing business travel for the foundation. Wales highlighted a statement by the foundation’s executive director Sue Gardner: “Jimmy has never used Wikimedia money to subsidize his personal expenditures. Indeed, he has consistently put the foundation’s interests ahead of his own.” In an email to Associated Press, Brad Patrick, a former attorney for the Wikimedia Foundation, stated “Danny seems interested in blogging his way straight to a lawsuit”.

Florence Devouard, who chairs the Wikimedia Foundation, told Associated Press that Wales had been “slow in submitting receipts,” and that the foundation had rejected Wales’ expense at the Florida steakhouse. Devouard told fellow foundation board members in a private email that she had convinced Associated Press that “the money story was a no story,” and told Wales “I find (it) tiring to see how you are constantly trying to rewrite the past. Get a grip!” Wales told Associated Press: “The board, the current executive director, the previous executive director, and independent auditors have reviewed our books and publicly agree that all of my expenses were appropriate and fully accounted for.”

Media reports speculated on how the controversy would end up being represented in Wikipedia itself. On Wednesday, the St. Petersburg Times wrote: “Wales’ Wikipedia page said only this about Marsden: ‘Wales had a brief relationship with Canadian journalist Rachel Marsden.'” An article in The Australian surmised: “History will decide whether Mr Wales broke his own principles, but before that happens there may well be a Wikipedia page devoted to the controversy.”

Saturday, April 17, 2010

US bank Goldman Sachs has been accused of fraud by the American regulator Securities and Exchange Commission (SEC).

According to the SEC, Goldman Sachs failed to inform investors of a conflict of interest in the banks’ marketing of sub-prime mortgage investments, which were being sold at a time of uncertainty in the US housing market. The SEC says that a Goldman subsidiary, Paulson & Co., had been involved in the selection of securities included in the mortgage investments. It had not been disclosed to investors that Paulson had bet that the value of the investments would fall, benefiting Paulson but not those who bought the investments.

The securities, which were combined into a package called Abacus that was sold to investors, lost over $1 billion during the collapse of the US housing industry. According to the SEC, Goldman, Paulson, and the creator of Abacus, a vice-president of Goldman Sachs named Fabrice Tourre, all knew that the housing market was going to collapse, but continued to sell Abacus despite the risks.

Tourre had been in command of selecting the investments within Abacus, and then was the person responsible for selling it to investors. He had told those who invested in Abacus that its components had been selected by an independent party, ACA Management.

In all, 99% of the investments within Abacus were downgraded, and investors lost upwards of a billion US dollars.

The SEC alleged that “Goldman Sachs arranged a transaction at Paulson’s request in which Paulson heavily influenced the selection of the portfolio to suit its economic interests.” In a short response from Goldman, the bank said that “The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.”

Sunday, December 12, 2010

In diplomatic cables released by the whistle blowing website Wikileaks on Friday, it is revealed that the United States embassy in Rangoon suspects the North Korean and Burmese military are participating in “covert military or military-industrial” activities. In the cables dating back as early as January 2004, the embassy reports the military activities could include the construction of a nuclear reactor in or near Minbu, along with “SAM missiles” and an underground facility with as many as 300 North Korean military personnel assisting the Burmese military in the construction. Burma is primarily controlled by its military.

In the January 2004 cable, a businessman reportedly told the U.S. embassy in Rangoon that “massive” barges were bringing in large pieces of equipment to Minbu from the Irawaddy River. He suggested that “the quantities involved as well as the diameter of the rebar suggested a project larger than ‘factories.'” In the same cable, the U.S. acknowledges that rumors of a nuclear reactor being constructed in the area date back to 2002, with suspected Russian involvement. “Rumors of ongoing construction of a nuclear reactor are surprisingly consistent and observations of activity such as that described [sic] appear to be increasing,” said Martinez, the reported cable author. According to a news report in March, The Irrawaddy claims Burma was close to completing at least three nuclear reactors. The country’s leadership claims the nuclear research that is taking place is to be used for peaceful purposes.

In August of the same year, the U.S embassy receives more information that North Korea military is assisting in the construction of “SAM missiles (surface to air missiles) of unknown origin” and an “underground, concrete reinforced” facility in Minbu. The construction allegedly includes buildings which would house at least “20 Burmese army battalions that will be posted near the site.” The correspondent again says that the report “tracks with other information Embassy Rangoon and others have reported in various channels.”

“This account is perhaps best considered alongside other information of various origins indicating the Burmese and North Koreans are up to something. Something of a covert military or military-industrial nature. Exactly what, and on what scale, remains to be determined,” said McMullen, the reported cable author. He also admits that the number of North Koreans thought to be assisting the Burmese military “is much higher than our best estimates of North Koreans in Burma.” According to the Agence France-Presse in 2002, citing an unnamed U.S State Department official, the U.S. warned Burma not to pursue a nuclear program saying that it expects Burma “to live up to its obligations [under the non-proliferation treaty] and to not pursue production of weapons grade fissile material.” However a 2008 cable says that Burma may already be in possession of weapons grade uranium. The cable reports that a civilian tried to sell 2,000 kilograms of uranium-238 which “could be dug up” from the ground at a site in Kayah State. Uranium-238 could be used in the construction of nuclear weapons.

“A Burmese civilian met with members of USDAO [United States Defense Attaché Office] Rangoon and offered to sell Uranium-238. The individual had initially contacted the USDAO eight days prior with the offer. The individual provided a small bottle half-filled with metallic powder and a photocopied certificate of testing from a Chinese university dated 1992 as verification of the radioactive nature of the powder,” said the cable. “The individual claimed to be able to provide up to 2000 kg of uranium-bearing rock from a location in Kayah State, and further stated if the U.S. was not interested in purchasing the uranium, he and his associates would try to sell it to other countries, beginning with Thailand,” it added. The cable adds that the Burmese government was unaware that such a transaction was taking place and that they “would likely seize any additional samples or stocks of the material if aware of their existence.” However, a cable in January of 2007 says that the Burmese military may have received a shipment of uranium at the end of that month. The “sensitive shipment” was said to have come from Singapore via shipping freighter.

“[An unnamed witness] claimed that metals are usually exported in blocks, whereas the bags in this shipment were filled with loose earth and mud. The source of the mixed ore, Maw Chi, is also a source for uranium, they claimed. Security was tighter than usual, surveillance was heavier, and officials paid closer attention to the movement of the shipment and activity at the port,” said the cable. The cable author, ‘Villarosa,’ later states that the embassy in Rangoon was given allegedly detailed information on the shipping methods, weight and cost. No further cables have yet to be released on the matter.

Tuesday, October 14, 2008

The San Diego, California suburb of Chula Vista has responded to the recent housing crisis with an aggressive blight control ordinance that compels lenders to maintain the appearance of vacant homes. As foreclosures increase both locally and throughout the United States, the one year old ordinance has become a model for other cities overwhelmed by the problem of abandoned homes that decay into neighborhood eyesores.

Chula Vista city code enforcement manager Doug Leeper told the San Diego Union Tribune that over 300 jurisdictions have contacted his office during the past year with inquiries about the city’s tough local ordinance. Coral Springs, Florida, and California towns Stockton, Santee, Riverside County, and Murietta have all modeled recently enacted anti-blight measures after Chula Vista’s. On Wednesday, 8 October, the Escondido City Council also voted to tighten local measures making lenders more accountable for maintenance of empty homes.

Under the Chula Vista ordinance lenders become legally responsible for upkeep as soon as a notice of mortgage default gets filed on a vacant dwelling, before actual ownership of the dwelling returns to the lender. Leeper regards that as “the cutting-edge part of our ordinance”. Chula Vista also requires prompt registration of vacant homes and applies stiff fines as high as US$1000 per day for failure to maintain a property. Since foreclosed properties are subject to frequent resale between mortgage brokers, city officials enforce the fines by sending notices to every name on title documents and placing a lien on the property, which prevents further resale until outstanding fines have been paid. In the year since the ordinance went into effect the city has applied $850,000 in fines and penalties, of which it has collected $200,000 to date. The city has collected an additional $77,000 in registration fees on vacant homes.

Jolie Houston, an attorney in San Jose, believes “Lenders will respond when it costs them less to maintain the property than to ignore local agency requirements.” Traditionally, local governments have resorted to addressing blight problems on abandoned properties with public funds, mowing overgrown lawns and performing other vital functions, then seeking repayment afterward. Chula Vista has moved that responsibility to an upfront obligation upon lenders.

As one of the fastest growing cities in the United States during recent years, Chula Vista saw 22.6% growth between 2000 and 2006, which brought the city’s population from 173,556 in the 2000 census to an estimated 212,756, according to the U.S. Census Bureau. Chula Vista placed among the nation’s 20 fastest growing cities in 2004. A large proportion of local homes were purchased during the recent housing boom using creative financing options that purchasers did not understand were beyond their means. Average home prices in San Diego County declined by 25% in the last year, which is the steepest drop on record. Many homeowners in the region currently owe more than their homes are worth and confront rising balloon payment mortgages that they had expected to afford by refinancing new equity that either vanished or never materialized. In August 2008, Chula Vista’s eastern 91913 zip code had the highest home mortgage default rate in the county with 154 filings and 94 foreclosures, an increase of 154% over one year previously. Regionally, the county saw 1,979 foreclosures in August.

Professionals from the real estate and mortgage industries object to Chula Vista’s response to the crisis for the additional burdens it places on their struggling finances. Said San Diego real estate agent Marc Carpenter, “that kind of measure will add additional costs to banks that have been hit really hard already and ultimately the cost will be transferred down to consumers and investors.” Yet city councils in many communities have been under pressure to do something about increasing numbers of vacant properties. Concentrations of abandoned and neglected homes can attract vandals who hasten the decline of struggling neighborhoods. Jolie Houston explained that city officials “can’t fix the lending problem, but they can try to prevent neighborhoods from becoming blighted.”

CEO Robert Klein of Safeguard, a property management firm, told the Union Tribune that his industry is having difficulty adapting to the rapidly changing local ordinances. “Every day we discover a new ordinance coming out of somewhere”, he complained. Dustin Hobbs, a spokesman from the California Association of Mortgage Bankers agreed that uneven local ordinances are likely to increase the costs of lending. Hobbs advised that local legislation is unnecessary due to California State Senate Bill 1137, which was recently approved to address blight. Yet according to Houston, the statewide measure falls short because it fails to address upkeep needs during the months between the time when foreclosure begins and when the lender takes title.

Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.