Hacking scam: Royals, Brown were victims

LONDON: The scandal engulfing Rupert Murdoch's media empire exploded in several directions on Monday, with fresh reports of phone hacking attacks against some of the nation's most powerful figures, including royals and former prime minister Gordon Brown.

Adding to the intrigue, Scotland Yard released an unusual statement accusing unidentified individuals of trying to sabotage its sprawling investigation. The police — themselves accused of accepting bribes from Murdoch's journalists — said somebody was deliberately planting distracting information in the press.

No one, it seems, had been safe from the prying eyes of corrupt journalists. Police officers betrayed members of the royal family to the News of The World, according to several reports. Other papers said Brown had his bank account broken into by a con man acting for Murdoch's Sunday Times.

The reports couldn't be confirmed, but they added to a sense of disbelief that has spread across Britain. “The events of last week shocked the nation,” Culture Secretary Jeremy Hunt told lawmakers Monday. He said Britain's proud press tradition had been “shaken by the revelation of what we now

know to have happened at the News of The World.”

The British press has been furiously reporting allegations that journalists at the News of the World tabloid may have hacked into phones of young murder victims, families of dead servicemen and terrorism victims. The widening scandal has prompted Murdoch's News Corp. to close the tabloid and withdraw its promise to spin off Sky News — a move that forced Hunt to refer its bid for British Sky Broadcasting to competition authorities. The decision will delay the bid, although it was not immediately clear whether Murdoch hoped to buy time with the ploy in the hope the scandal would die down, or whether it was an implicit acknowledgement that the bid was dead.

A failure to clinch the $19 billion takeover would represent a huge setback for Murdoch, but even as the mogul was in London to try to contain the damage, as allegations against his empire rushed in. Media reported that Brown was one of thousands targeted by News International, saying that his personal details — including his bank account and his son's medical records — had been targeted by people working for titles including the Sun and the Sunday Times.

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Hezbollah expects many indicted over Hariri killing

(Reuters) – The leader of Lebanon’s powerful Hezbollah group said Sunday he expected many members of his group would be indicted by a U.N. investigation into the killing of former prime minister Rafik al-Hariri.

Sayyed Hassan Nasrallah said the United Nations tribunal, which he has condemned as an “Israeli project,” was likely to issue several waves of indictments against Hezbollah, which has denied any involvement in Hariri’s 2005 assassination.

“We are the ones against whom the accusation is made, and it’s not three (members),” Nasrallah said.

“A few days ago Lebanese security officials said the first indictment would be three, then after a while five, then the third (group) 20 and the fourth 50,” he told a Hezbollah gathering by video link.

Indictment of Hezbollah members for Hariri’s killing would put severe strains on Lebanon’s unity government, which is led by Hariri’s son Saad and includes Hezbollah ministers.

Nasrallah’s criticism of the U.N. tribunal earlier this month led to heated exchanges between Hezbollah allies and supporters of Hariri, who have strongly supported the international investigation.

President Michel Suleiman held four days of talks last week with political leaders to try to calm tensions, which echoed the deep divisions which led the country to the brink of renewed civil war in 2008.

CHANGED TESTIMONY

In his latest attack on the U.N. tribunal, Nasrallah said investigators had not even tried to find out why several witnesses changed their testimony.

Evidence from one witness, Hosam Taher Hosam, initially implicated officials from Syria — a main backer of Hezbollah — but he later withdrew his testimony. The reliability of another, Syrian witness Mohammed Zuhair al-Siddiq, has been questioned.

Nasrallah said the fact that the U.N. investigation had not established why the witnesses changed their minds, or who might have been behind their original testimony, showed it was “not qualified to find the truth.”

“What do we suggest? Form a Lebanese commission, or parliamentary or judicial or ministerial or security commission to summon the witnesses … to ask them: Who led you? Who taught you? Who fabricated this for you?” Nasrallah said.

Last year the chief U.N. tribunal judge released four senior, pro-Syrian Lebanese officers after they had been held for four years without charge, saying that several witnesses had modified or retracted their original statements.

The U.N. investigation into Hariri’s killing first implicated Syrian and Lebanese officials, although it later held back from giving details of its findings.

Saad al-Hariri, who initially blamed Syria for his father’s death, has since tried to ease tensions with Syria and has made several trips to Damascus to meet President Bashar al-Assad. Syria has denied any involvement in Hariri’s killing.

Iraq parliament to meet Tuesday but impasse lingers

(Reuters) – Iraq’s new parliament will meet on Tuesday for just the second time since a March 7 parliamentary election that produced no clear winner, a representative of a political bloc said on Sunday.

But the decision to schedule a new session, made at a meeting of the political factions, did not signal a deal between squabbling coalitions on the formation of a new government, said Salim al-Jubouri, an official with the Tawafuq bloc.

The new session was intended to pick a new parliamentary speaker and two deputies, a necessary step in the process of forming a new government.

“In the absence of a political accord between the blocs in parliament … the solution is to vote (for a new speaker and deputies),” Jubouri said.

“The representatives of the blocs agreed to hold the session on Tuesday at 10 o’clock,” he said.

JOCKEYING FOR POSITION

Iraq’s Shi’ite, Sunni and Kurdish factions have been jockeying for position in the new government since an inconclusive parliamentary election four months ago that Iraqis had hoped would bring stable government after years of war.

U.S. troops are due to pull out by the end of next year.

The negotiations have snagged on the issue of who would hold the prime minister’s office. Shi’ite incumbent Nuri al-Maliki, whose State of Law bloc placed second in the election, wants another term.

Former prime minister Iyad Allawi, whose cross-sectarian Iraqiya coalition won two seats more than Maliki’s on March 7, also wants the premiership.

State of Law and Iraqiya objected to calling a new session of parliament for Tuesday and were likely to be absent, meaning there would not be enough members present for a quorum, several lawmakers said.

Together the two blocs hold 180 of parliament’s 325 seats.

The new parliament met for the first time on June 14 in a session that lasted barely 20 minutes. The session was left open and lawmakers have not reconvened since.

(Writing by Jim Loney)

Thai PTT group not discussing merger this week

July 20 (Reuters) – A long-awaited consolidation of Thailand’s PTT (PTT.BK) group will not be on the agenda of board meetings to be held this week by its petrochemical and refinery affiliates, a senior official said on Tuesday.

The plan is widely expected to involve a merger between PTT Aromatics and Refining (PTTAR.BK) and IRPC (IRPC.BK) to create Asia’s eighth-largest oil refiner.

“The board will not consider the consolidation this week because management has to clarify some legal issues,” PTTAR Chief Executive Officer Chainoi Puankosom told Reuters.

A recent investigation by the national anti-graft agency on a case involving a rehabilitation plan for IRPC, formerly known as Thai Petrochemical Industry (TPI), was one issue the PTTAR board needed more time to consider, Chainoi said.

Last week, the National Anti-Corruption Commission voted that former Prime Minister Thaksin Shinawatra was wrong to endorse the Finance Ministry as an administrator for TPI’s rehabilitation plan in 2003.

TPI was Thailand’s largest corporate debt defaulter when it collapsed under a mountain of foreign debt during the 1997/1998 Asian economic crisis.

It was renamed IRPC in 2006 after the government had intervened in 2003 and PTT took control of it in late 2005 as part of the restructuring.

Last week, Chainoi said the PTTAR board would meet this week to consider legal issues related to the consolidation within the PTT group.

PTTAR, Thailand’s top integrated aromatics refinery, is nearly half owned by PTT, the country’s top energy firm. PTT owns 36 percent of IRPC.

PTT, PTTAR and IRPC held separate board meetings in late May, when the market had been expecting progress on the consolidation plan but was disappointed.

The consolidation of the petrochemical and refinery units — a move aimed at cutting costs and boosting efficiency — was originally supposed to take effect in November 2009 but was delayed by an environmental dispute at the huge Map Ta Phut industrial estate. [ID:nSGE617075]

At 0425 GMT, PTTAR shares were down 1.6 percent at 24.10 baht, while IRPC was unchanged. PTT rose 1.6 percent, while the main market .SETI was 0.7 percent higher. ($1 = 32.28 Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)

Afghan insurgent group denies selling out Taliban

(Reuters) – An Afghan insurgent group rejected on Saturday reports that it was providing intelligence on the Taliban to the government and foreign troops.

General Murad Ali Murad, commander of Afghan troops in the north, told Reuters that Hezb-i-Islami fighters had tipped-off government and U.S. forces, revealing locations of key Taliban figures there.

“This is part of the propaganda war by the government, foreign troops and those trying to create differences among us,” said Haroon Zarghoun, a spokesman for Hezb, which is led by former prime minister Gulbuddin Hekmatyar.

“Anyone doing such work is an apostate and is certainly not a Hezb member,” Zarghoun told Reuters by phone from an undisclosed location. Hekmatyar’s Hezb is one of three major insurgent groups fighting government and foreign forces in Afghanistan — mainly in the east and pockets of the north.

STRONGHOLDS

The other two, both seen by NATO as bigger threats, are the Taliban, with strongholds in the south, and the Haqqani network, based mainly in the southeast.

Ousted in a U.S.-led invasion in 2001 the Taliban have re-grouped in their traditional heartlands, but are also now spreading to parts of the north.

However the group has lost a number of commanders in the north in operations by Afghan and foreign troops in recent months which senior Afghan officials said were the result of Hezb fighters selling them out.

While Hezb shares some of the aims of the Taliban, it has led a largely separate insurgency. Earlier this year, Taliban fighters pushed into Hezb-i-Islami strongholds in the north, leading to clashes between the two groups.

Both groups later played down the clashes, but Murad said Hekmatyar’s men — who came off worse in the fighting — were now seeking revenge and were passing on information about their Taliban rivals.

Several Taliban commanders, including the deputy shadow governor of Kunduz and a shadow district governor, have been killed in the last three months, NATO has said, some by air strikes as they drove through a remote desert and others as they met in a field.

Under NATO rules of engagement, such air strikes would require troops to follow strict procedures for positively identifying the insurgents. This in turn would be heavily dependent on reliable intelligence and could suggest such information came from within the insurgency.

Increased localized squabbling could signal divisions in the insurgency after Hezb-i-Islami distanced itself from the Taliban earlier this year when it sent a delegation to Kabul to meet President Hamid Karzai.

While the talks ended without breakthrough, Hezb said it would consider negotiating with the government as long as foreign forces withdrew within a specified timeframe.

The Taliban have always insisted no talks can take place until all foreign troops leave.

(Reporting by Sayed Salahuddin; Editing by David Fox)

Ukraine’s Yanukovich fails in move to strengthen powers

(Reuters) – Allies of Ukrainian President Viktor Yanukovich failed on Saturday in a first attempt to push through changes to the constitution that could significantly boost his political powers in the ex-Soviet republic.

Parliament launched a debate on Friday on a proposal by Yanukovich’s Regions Party that would allow for a referendum to decide whether curbs on presidential powers, agreed in 2004, should be lifted.

Political commentators said allies of Yanukovich, who was elected last February after a bitter political campaign against former Prime Minister Yulia Tymoshenko, sought particularly to boost presidential authority over the government.

At the moment, the president can propose candidates only for foreign and defense ministers — and even they have to be accepted by parliament.

If the curbs were lifted, commentators said Yanukovich would effectively rule in a presidential system similar to that of many other former Soviet states, including Russia, with the right to name government ministers.

But when parliament met on Saturday in exceptional session several parties voiced opposition to agreeing on a referendum now. They included the Communists and the Lytvyn bloc which are part of the majority underpinning Yanukovich’s government.

Further debate on proposal was put off until September.

The present limits on presidential powers were imposed in 2004 when the pro-Western Viktor Yushchenko came to power after the “Orange Revolution” street demonstrations, and partly contributed to his downfall.

Yushchenko’s five years in power were marked by constant confrontation with parliament and with Tymoshenko, his prime minister, and he crashed to a humiliating first-round defeat when he sought re-election this year.

Since he came to power with the financial backing of key business figures, Yanukovich has gradually tightened his grip in the country, appointed close allies to key positions in the power structure and tilted foreign policy back toward Ukraine’s old Soviet master, Russia.

But he said last month that the limits on the power of the presidency had produced a crisis of authority and he urged a change in the constitution.

(Reporting by Pavel Polityuk; Writing by Richard Balmforth; Editing by Maria Golovnina)

Afghan insurgent group denies selling out Taliban

(Reuters) – An Afghan insurgent group rejected on Saturday reports that it was providing intelligence on the Taliban to the government and foreign troops.

General Murad Ali Murad, commander of Afghan troops in the north, told Reuters that Hezb-i-Islami fighters had tipped-off government and U.S. forces, revealing locations of key Taliban figures there.

“This is part of the propaganda war by the government, foreign troops and those trying to create differences among us,” said Haroon Zarghoun, a spokesman for Hezb, which is led by former prime minister Gulbuddin Hekmatyar.

“Anyone doing such work is an apostate and is certainly not a Hezb member,” Zarghoun told Reuters by phone from an undisclosed location. Hekmatyar’s Hezb is one of three major insurgent groups fighting government and foreign forces in Afghanistan — mainly in the east and pockets of the north.

STRONGHOLDS

The other two, both seen by NATO as bigger threats, are the Taliban, with strongholds in the south, and the Haqqani network, based mainly in the southeast.

Ousted in a U.S.-led invasion in 2001 the Taliban have re-grouped in their traditional heartlands, but are also now spreading to parts of the north.

However the group has lost a number of commanders in the north in operations by Afghan and foreign troops in recent months which senior Afghan officials said were the result of Hezb fighters selling them out.

While Hezb shares some of the aims of the Taliban, it has led a largely separate insurgency. Earlier this year, Taliban fighters pushed into Hezb-i-Islami strongholds in the north, leading to clashes between the two groups.

Both groups later played down the clashes, but Murad said Hekmatyar’s men — who came off worse in the fighting — were now seeking revenge and were passing on information about their Taliban rivals.

Several Taliban commanders, including the deputy shadow governor of Kunduz and a shadow district governor, have been killed in the last three months, NATO has said, some by air strikes as they drove through a remote desert and others as they met in a field.

Under NATO rules of engagement, such air strikes would require troops to follow strict procedures for positively identifying the insurgents. This in turn would be heavily dependent on reliable intelligence and could suggest such information came from within the insurgency.

Increased localized squabbling could signal divisions in the insurgency after Hezb-i-Islami distanced itself from the Taliban earlier this year when it sent a delegation to Kabul to meet President Hamid Karzai.

While the talks ended without breakthrough, Hezb said it would consider negotiating with the government as long as foreign forces withdrew within a specified timeframe.

The Taliban have always insisted no talks can take place until all foreign troops leave.

(Reporting by Sayed Salahuddin; Editing by David Fox)

Afghan insurgent group denies selling out TalibanAfghan insurgent group denies selling out Taliban

July 10 (Reuters) – An Afghan insurgent group rejected on Saturday reports that it was providing intelligence on the Taliban to the government and foreign troops.

General Murad Ali Murad, commander of Afghan troops in the north, told Reuters that Hezb-i-Islami fighters had tipped-off government and U.S. forces, revealing locations of key Taliban figures there. [ID:nSGE66300D]

“This is part of the propaganda war by the government, foreign troops and those trying to create differences among us,” said Haroon Zarghoun, a spokesman for Hezb, which is led by former prime minister Gulbuddin Hekmatyar.

“Anyone doing such work is an apostate and is certainly not a Hezb member,” Zarghoun told Reuters by phone from an undisclosed location. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For more on Afghanistan click [ID:nAFPAK]

or see link.reuters.com/syx62d

Afghan blog: blogs.reuters.com/afghanistan/ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Hekmatyar’s Hezb is one of three major insurgent groups fighting government and foreign forces in Afghanistan — mainly in the east and pockets of the north.

STRONGHOLDS

The other two, both seen by NATO as bigger threats, are the Taliban, with strongholds in the south, and the Haqqani network, based mainly in the southeast.

Ousted in a U.S.-led invasion in 2001 the Taliban have re-grouped in their traditional heartlands, but are also now spreading to parts of the north.

However the group has lost a number of commanders in the north in operations by Afghan and foreign troops in recent months which senior Afghan officials said were the result of Hezb fighters selling them out.

While Hezb shares some of the aims of the Taliban, it has led a largely separate insurgency. Earlier this year, Taliban fighters pushed into Hezb-i-Islami strongholds in the north, leading to clashes between the two groups.

Both groups later played down the clashes, but Murad said Hekmatyar’s men — who came off worse in the fighting — were now seeking revenge and were passing on information about their Taliban rivals.

Several Taliban commanders, including the deputy shadow governor of Kunduz and a shadow district governor, have been killed in the last three months, NATO has said, some by air strikes as they drove through a remote desert and others as they met in a field.

Under NATO rules of engagement, such air strikes would require troops to follow strict procedures for positively identifying the insurgents. This in turn would be heavily dependent on reliable intelligence and could suggest such information came from within the insurgency.

Increased localised squabbling could signal divisions in the insurgency after Hezb-i-Islami distanced itself from the Taliban earlier this year when it sent a delegation to Kabul to meet President Hamid Karzai.

While the talks ended without breakthrough, Hezb said it would consider negotiating with the government as long as foreign forces withdrew within a specified timeframe. [ID:nSGE62U06H]

The Taliban have always insisted no talks can take place until all foreign troops leave. (Reporting by Sayed Salahuddin; Editing by David Fox) (sayed.salahuddin@thomsonreuters.com; Kabul newsroom: +93 799 335 285)) (If you have a query or comment about this story, send an e-mail to news.feedback.asia@thomsonreuters.com)

Q+A: PM Gillard changes Australian govt election hopes

(Reuters) – Australia’s ruling Labor party elected Julia Gillard as the nation’s first woman prime minister on Thursday after former prime minister Kevin Rudd quit on losing the support of his lawmakers.

World

Gillard, 48, has promised a more consensus-driven government to help her party reconnect with disgruntled voters after months of poor opinion polls and with an election expected around October.

Here are some questions and answers on how Gillard’s appointment changes the political outlook in Australia. IS

LABOR MORE LIKELY TO WIN THE NEXT ELECTION?

Gillard’s election should help Labor re-build voter support ahead of the election, and should give the party a stronger chance of victory. Opinion polls regularly find Gillard to be more popular than Rudd, and betting agencies have already reported Labor is now the firm favorite to win the election.

Gillard has long been one of the government’s best performers in parliament with her ability to sell policies and deflect political attacks. Her promise of a consensus style of government is also in stark contrast to Rudd’s sometimes autocratic style.

Gillard also has wide voter appeal to both men and women, compared to conservative opposition leader Tony Abbott, a former Catholic seminarian who regularly polls poorly with women voters.

She is also likely to now enjoy a political honeymoon period, and every action of the first woman to lead the country is likely to be closely reported by media early in her time in charge.

DOES THIS CHANGE THE ELECTION TIMING?

Gillard’s appointment is unlikely to change the timing of the next election, which is due by the end of the year. She is likely to spend the coming months traveling the country, and making sure Australian voters know who she is and where she comes from.

She has also called a truce in the government’s damaging fight with miners over a proposed 40 percent profits tax. She is likely to need time to broker a deal ahead of the election.

An early poll in August would be risky for a new leader, still getting used to the wider responsibilities of the job. Gillard’s home state of Victoria also has elections set for late November. Both point to an election in early to mid October.

WHAT POLICIES MAY CHANGE?

Gillard has already signaled a more consultative approach on the mining tax and has indicated a stronger focus on the postponed emissions trading scheme if she wins the next election

But Gillard could also make changes to controversial asylum seeker policies. More boatpeople arrivals in recent years has been a simmering issue on talkback radio, and Labor has been vulnerable to opposition attacks blaming Rudd’s policies for the arrivals. At her first media conference, Gillard signaled a firmer stance after stressing she understood why Australians were disturbed about refugee boats arriving in Australian waters.

HOW WILL THE ELECTION BATTLE SHAPE UP?

Gillard’s elevation changes the political battle with opposition leader Tony Abbott.

Abbott is a blunt speaking conservative who grabs headlines with his combative style. Gillard can be a sharp-witted debater, but also retains a calm and composed demeanor when under attack.

Abbott may need to take care in his attacks on Gillard, to ensure the election does not become about personalities, particularly as Gillard’s election adds a gender issue to the political debate.

Gillard, in her first news conference as prime minister, has already made it clear she will focus her political attacks on Abbott’s views on workplace laws, and on health and education. Abbott has stressed that while Gillard is a new face for Labor, she supports the same policies as Rudd.

(Editing by Ed Davies and Miral Fahmy)

Fortescue chief cheers move to negotiate on mine tax

June 24 (Reuters) – Australian iron ore miner Andrew “Twiggy” Forrest on Thursday welcomed overtures by Australia’s new prime minister Julia Gillard to negotiate over a proposed new mining tax.

Basic Materials

Forrest, chief executive of Fortescue Metals Group (FMG.AX), has been at the centre of attacks on a tax that he described as a veiled act of nationalisation of Australia’s mining sector by former Prime Minister Kevin Rudd.

“Ms Gillard and her new government have realised that government policy is best effected through open and honest consultations with the Australian people and industry,” Forrest said in a statement. (Reporting by James Regan; Editing by Ed Davies)

Iraq’s new parliament to sit, government weeks away

(Reuters) – Iraq’s parliament sits on Monday for the first time since inconclusive March elections but it could be weeks before a government is formed that can tackle worsening insurgent violence.

World

Iraqis hoped the March 7 election would bring stability as the United States prepares to end combat operations in August ahead of a full troop pullout by the end of 2011.

Instead, weeks of sniping and challenges to the result have exposed the growing pains of Iraq’s nascent democracy, with the chief factions at loggerheads over who gets to lead the government.

Overall violence has dropped sharply since the height of sectarian warfare in 2006-07 but there has been a steady rise in casualties in the past two months, as insurgents try to exploit the political deadlock.

The 325-seat parliament will hold its inaugural session under increased security after gunmen attacked the Iraqi central bank on Sunday, killing at least 15 people.

“Such national occasions definitely will a target for enemies of the democratic process in Iraq,” Baghdad security spokesman Major General Qassim al-Moussawi told reporters.

Emerging from decades of war, sanctions and isolation, Iraq desperately needs stability to restore basic services and foster economic growth on the back of multibillion dollar oil deals. Much-needed legislation, including laws on the oil sector, has been languishing in draft form for years.

Former Prime Minister Iyad Allawi led his cross-sectarian Iraqiya alliance to a narrow victory in the election, with strong support from Iraq’s once-dominant Sunni minority.

But he fell short of an outright majority and faces being sidelined by a tie-up between the main Shi’ite blocs — State of Law led by incumbent Prime Minister Nuri al-Maliki and the Iraqi National Alliance (INA), which includes Sadr.

Allawi says sidelining the Sunni minority completely could fuel the insurgency that still grips Iraq seven years after a U.S.-led invasion toppled Sunni dictator Saddam Hussein.

The rival Shi’ite bloc, which is itself four seats short of a majority, has yet to agree who will lead the bloc or be prime minister and Maliki is resisting INA pressure to step aside.

The Shi’ite bloc is meanwhile seeking to draw away Sunni deputies from Iraqiya to give it a majority in parliament.

Allawi has threatened to mount a legal challenge to the Shi’ite coalition if it attempts to form a government before his bigger non-sectarian group is given the chance.

Against this background, Monday’s parliamentary session will be largely protocol, and could drag on for weeks as the factions haggle over the posts of president, prime minister and speaker of parliament, as well as more than 30 cabinet posts.

“Tomorrow’s session will be protocol, swearing in, and I think the head of the session will keep it open until a political understanding identifies a deal,” said Qusay al-Suhail, a senior official of a Shi’ite bloc led by firebrand anti-U.S. cleric Moqtada al-Sadr.

“I expect that the session will remain open for a month until a degree of understanding is reached,” he told Reuters.

(Additional reporting by Ahmed Rasheed; Writing by Matt Robinson; Editing by Jon Boyle)

Iraq’s new parliament to sit, government weeks away

BAGHDAD, June 13 (Reuters) – Iraq’s parliament sits on Monday for the first time since inconclusive March elections but it could be weeks before a government is formed that can tackle worsening insurgent violence.

Iraqis hoped the March 7 election would bring stability as the United States prepares to end combat operations in August ahead of a full troop pullout by the end of 2011.

Instead, weeks of sniping and challenges to the result have exposed the growing pains of Iraq’s nascent democracy, with the chief factions at loggerheads over who gets to lead the government.

Overall violence has dropped sharply since the height of sectarian warfare in 2006-07 but there has been a steady rise in casualties in the past two months, as insurgents try to exploit the political deadlock.

The 325-seat parliament will hold its inaugural session under increased security after gunmen attacked the Iraqi central bank on Sunday, killing at least 15 people.

“Such national occasions definitely will a target for enemies of the democratic process in Iraq,” Baghdad security spokesman Major General Qassim al-Moussawi told reporters.

Emerging from decades of war, sanctions and isolation, Iraq desperately needs stability to restore basic services and foster economic growth on the back of multibillion dollar oil deals. Much-needed legislation, including laws on the oil sector, has been languishing in draft form for years.

Former Prime Minister Iyad Allawi led his cross-sectarian Iraqiya alliance to a narrow victory in the election, with strong support from Iraq’s once-dominant Sunni minority.

But he fell short of an outright majority and faces being sidelined by a tie-up between the main Shi’ite blocs — State of Law led by incumbent Prime Minister Nuri al-Maliki and the Iraqi National Alliance (INA), which includes Sadr.

Allawi says sidelining the Sunni minority completely could fuel the insurgency that still grips Iraq seven years after a U.S.-led invasion toppled Sunni dictator Saddam Hussein.

The rival Shi’ite bloc, which is itself four seats short of a majority, has yet to agree who will lead the bloc or be prime minister and Maliki is resisting INA pressure to step aside.

The Shi’ite bloc is meanwhile seeking to draw away Sunni deputies from Iraqiya to give it a majority in parliament.

Allawi has threatened to mount a legal challenge to the Shi’ite coalition if it attempts to form a government before his bigger non-sectarian group is given the chance.

Against this background, Monday’s parliamentary session will be largely protocol, and could drag on for weeks as the factions haggle over the posts of president, prime minister and speaker of parliament, as well as more than 30 cabinet posts.

“Tomorrow’s session will be protocol, swearing in, and I think the head of the session will keep it open until a political understanding identifies a deal,” said Qusay al-Suhail, a senior official of a Shi’ite bloc led by firebrand anti-U.S. cleric Moqtada al-Sadr.

“I expect that the session will remain open for a month until a degree of understanding is reached,” he told Reuters. (Additional reporting by Ahmed Rasheed; Writing by Matt Robinson; Editing by Jon Boyle)

Thai consumer confidence up in May after unrest ends

BANGKOK, June 10 (Reuters) – Consumer confidence in Thailand rose in May as tension eased after the end of disruptive political protests in the capital, with strong GDP data released during the month also providing a boost.

The consumer confidence index from the University of the Thai Chamber of Commerce rose to 67.6 in May after plunging a record 2.6 points to 67.2 in April because of political violence. April’s reading was the lowest since July 2009.

“Confidence rose for the first time in four months as the political situation eased. It is really because of the story of hope,” university economist Thanavath Phonvichai told a news conference on Thursday.

The government has announced a reconciliation plan and Prime Minister Abhisit Vejjajiva is due to unveil details later on Thursday.

The protesters were mainly poorer Thais, supporters of former Prime Minister Thaksin Shinawatra who was ousted in a military coup in 2006.

The survey was conducted after the May 19 crackdown by the military that ended nine weeks of unrest. In contrast, the April poll was conducted after deadly clashes between troops and protesters on April 10, after which tension escalated.

Confidence in May was also boosted by strong economic growth in the first quarter of 2010. Data on May 24 showed GDP grew 3.8 percent from the previous quarter and 12 percent from a year before, when Thailand was going through a brief recession.

However, the unrest has hit tourism and consumption, and some economists said the economy could contract in April-June from the first quarter. [ID:nSGE657032]

DEAD AND INJURED

Confidence hit a 21-month high of 71.9 in January as the economy recovered but then slipped as political tension built up. More than 89 people were killed during the anti-government protests from mid-March and nearly 2,000 injured.

Sentiment should improve as long as the political situation remains calm, the university said, adding an index that projects confidence over the next six months also rose for the first time in four months in May, reaching 74.1 after 73.0 in April.

“The higher index shows that consumers are feeling better now the protest is over,” said Thammarat Kittisiripat, an economist at Tisco Securities.

“That should help boost spending. Although the outlook for the political problem is not clear yet, I still believe that our economic fundamentals remain strong,” he added.

Life in the capital is back to normal three weeks after the crackdown, and the government has announced relief measures to help firms and small operators hit by the violence.

Several countries, including Britain and Australia, have eased their travel warnings for Thailand, which should help bring back tourists over time. Tourism accounts for 6 percent of GDP and employs at least 15 percent of the workforce.

Prime Minister Abhisit Vejjajiva remains optimistic that economic growth could be close to 6 percent this year. [ID:nSGE65501I]. The state planning agency, the NESDB, which compiles GDP data, forecasts 3.5 to 4.5 percent. ($32.62 Baht) (Additional reporting by Arada Kultawanich; Editing by Alan Raybould)

Suicide bomber kills four police in Iraqi capital

A suicide bomber drove a car packed with explosives into a crowd of police officers at shift change outside a police station in Baghdad on Sunday, killing four and wounding 12, a source in Iraq’s Interior Ministry said.

The bomber struck in the mainly Shi’ite Amil district in the southwestern area of the Iraqi capital, the source said.

Tensions have been running high since a parliamentary election nearly three months ago that produced no clear winner, forcing potentially divisive negotiations between Iraq’s Shi’ite, Sunni and Kurdish political factions to agree a new government.

Overall violence has tumbled since the worst of Iraq’s sectarian warfare in 2006-07, when tens of thousands of people were killed.

But civilian deaths have climbed since the March 7 election. Iraqi authorities said 275 civilians were killed in bomb blasts and other attacks in May and 274 in April, up from 216 in March and 211 in February.

A cross-sectarian electoral coalition led by secularist former Prime Minister Iyad Allawi rode strong support from Iraq’s minority Sunnis to a two-seat victory over a largely Shi’ite bloc headed by Prime Minister Nuri al-Maliki.

But Maliki’s State of Law group has announced a tentative alliance with the third-place finisher, the Shi’ite Iraqi National Alliance, to form a single bloc in parliament.

Allawi has warned that any attempt by the Shi’ite groups to form a government that excludes his Sunni-backed Iraqiya coalition could spark renewed violence.

On Saturday, gunmen killed an Iraqiya candidate who did not win a seat in parliament. Faras al-Jubouri was shot to death in his home near the troubled northern city of Mosul.

He was the second Iraqiya candidate to be killed since the election.

(Writing by Jim Loney; Editing by Michael Roddy)

Didigiri Rules

India, June 5 — The lane leading to 30 B, Harish Chatterjee Street, close to the Kalighat temple in south Kolkata, is crowded on most days. But for the past three days, a fresh fervour appears to have gripped its residents. “Didi, didi, this way”, goes the chorus, as the lady emerges from the tiled house. Some dive at her feet, others attempt to garland her. Her neighbours in the dingy lane have closely witnessed the dizzy rise of Mamata Banerjee. From a student leader at the Jogmaya Devi College to the firebrand minister who is close to dislodging the 33-year-old communist government in West Bengal, she has come a long way. Banerjee’s political career is divided into three phases. First, as a young Congress worker, she trounced CPI(M) heavyweights such as Somnath Chatterjee in the 1984 Lok Sabha polls. In the second phase, between 1991-1997, she ran an almost parallel Congress organisation in Bengal that would later evolve into the Trinamool Congress. In the third phase, between 2006 and 2010, she spearheaded the Singur and Nandigram agitations, trouncing the Left in most elections held since. Most of her life as Congress member was spent trying to convince the party leadership about her credentials as the only leader who could give the Left Front a run for its money. Banerjee’s spunk impressed former prime minister Rajiv Gandhi. After his death, she got a ministerial berth in the P.V. Narasimha Rao Government. The same minister sat on a dharna against the government over the Terrorists and Disruptive Activities (Prevention) Act and fought the Pradesh Congress Committee elections against party satrap Somen Mitra. She lost and realised that the manner in which state leaders perceived the Congress should function and the way she saw it were different. In 1997, her relationship with the Congress leadership reached a nadir, when, during an AICC session in Kolkata, she launched the Trinamool Congress. Her flirtation with the BJP began and she fought the 1998 Lok Sabha elections with the saffron party. After a repeat performance in 1999 she became Railway Minister. Banerjee soon began to grow uncomfortable as her BJP connection was alienating her Muslim voters. A stir over kickbacks for the purchase of coffins for the army gave her the opportunity to wriggle out. In a hurriedly cooked alliance with the Congress, Banerjee fought the 2001 assembly polls and lost. She could not counter Buddhadeb Bhattacharya’s popularity and the simultaneous backstabbing by a section of Congress leaders. The National Democratic Alliance led by the BJP was a natural choice once again. But the Godhra riots further alienated her Muslim supporters and the 2004 Lok Sabha elections saw her party win just one parliamentary seat from Bengal: Banerjee herself. In the 2006 assembly elections too, her party fared badly. In almost three-decade long political career, Banerjee has remained an enigma. Her now-legendary mood swings have baffled even those close to her. She has often behaved rudely inside the Parliament and was even spotted hurling the “resignation letter” at the speaker. One of the lowest points of Banerjee’s career came in 1989 when she lost in the Jadavpur Lok Sabha polls to Malini Bhattacharya. More than the defeat, she became an object of ridicule for using “Dr” in her posters during campaigning. She defended her “degree”, but nobody could trace the East Georgia University that had conferred her the honour. In 1996, she attempted “suicide” by threatening to hang herself with a shawl accusing the Congress leadership of doling out assembly tickets to “criminals”. Banerjee’s split personality has evoked veneration and wrath from admirers and rivals respectively. Says senior journalist Manojit Mitra: “She is strange mixture. It is difficult to understand her appeal with our urban educated sensibilities. But she attracts the masses like a magnet.” “She talks something in the morning and the opposite in the evening”, says West Bengal CPI (M) secretary Biman Bose. After hours, didi, as she is popularly known, loves humming Tagore songs and playing the synthesiser. She also paints, mostly flowers and Lord Ganesha. She is on the treadmill at least once a day. Before and after her workouts, Banerjee works on her books – at last count she had written 17. Histrionics aside, Banerjee is one of the few Indian leaders who reach out to the common man in his own language. She often travels to remote villages to comfort grieving relatives of a party man. Reporters recall villagers leaving their meals and rushing out to have a glimpse of her motorcade. The agitation over Singur and Nandigram, which began in September 2006, revived Banerjee’s sagging political career. Her protests against land acquisition made her the darling of the rural masses, Left loyalists for long. The Communists gave in meekly and the Nandigram project was scrapped. Banerjee reaped rich dividends in the panchayat polls of 2008. In the 2009 Lok Sabha elections, the one-MP-party bagged 19 seats. There has been no looking back since. Whether it was the assembly by-elections or the school committee polls, the Trinamool Congress emerged as a formidable force in Bengal.

If recent poll results are any indication, Banerjee is inching closer to the red building at Dalhousie Square. For the past three days, she has remained huddled with top Trinamool leaders. “There is no governance in Bengal right now. I want early elections,” she said on Thursday.

Need to weed out sycophancy, says Gadkari at BJP meet

Seeking to discourage what he described as the “Congress political culture” like touching the feet of leaders, BJP national president Nitin Gadkari on Saturday said his party represented a “different political culture” and needed to weed out sycophancy.

Addressing the national convention on good governance ‘Surajya Sankalpa’, attended by chief ministers and ministers of BJP-ruled states and senior party functionaries at Rambhau Mhalgi Prabhodhini near Bhayender on Saturday, Gadkari said he had seen BJP activists trying to touch his feet after he become the party president and had advised them against doing so.

He said sycophancy that had crept into the party needed to be stopped and the “Congress political culture” needed to be kept outside the BJP.

Citing his own political career, he said he rarely displayed any cut-outs of leaders. He said that he remembered purchasing garlands for two persons only, namely singer Lata Mangeshkar and former Prime Minister Atal Bihari Vajpayee. “We represent a different political culture. We are a party with a difference,” he added.

He stressed the need for moving beyond caste, language and region in politics and noted how he was appalled at a meeting of the party parliamentary board to hear talk mentioning caste of leaders.

He asked whether Gujarat Chief Minister Narendra Modi, the keynote speaker at the conclave, could be bracketed only as a leader of the backwards. “A man does not rise because of caste but because of his work,” he added.

Gadkari said BJP-led state governments were doing good work and could communicate their ideas to one other. He said the BJP objective was to ensure antyodaya (welfare of the downtrodden) through sushasan (good governance).

Madonna casts James D”arcy as King Edward VIII for upcoming flick

London, June 4 (ANI): Queen of Pop Madonna has cast actor James D”arcy as King Edward VIII in her upcoming royal biopic W.E.

The singer is set to direct the film, based on the story of the former monarch, who abdicated the throne after falling in love with American divorcee Wallis Simpson.

Actress Andrea Riseborough, best known for her TV portrayal of former Prime Minister Margaret Thatcher, will play the woman who rocked the royal family, while Aussie beauty Abbie Cornish will star as a modern wife who compares herself to Wallis.

And now, Madonna has picked D”Arcy to take on the role of King Edward.

“We”ve found the right cast for this picture. The addition of James is wonderful as he”s got such charisma and possesses a regal quality that he can capture. There was a real chemistry between him and Andrea,” the Daily Express quoted producer Colin Vaines as saying. (ANI)

Thai opposition challenge PM over deadly crackdown

(Reuters) – Thailand’s parliamentary opposition accused Prime Minister Abhisit Vejjajiva of human rights abuses Monday in a no-confidence motion centered on the use of violence during a crackdown on anti-government protests.

Thailand

The two-day debate aims to focus attention on tough measures used to break up the “red shirt” protests which ended on May 19, and could force Abhisit to defend the firing of live ammunition by troops during a six-week period in which 88 people were killed and nearly 2,000 wounded.

The opposition have also accused Abhisit and five cabinet ministers of corruption and economic mismanagement.

The no-confidence motion is led by the Puea Thai Party backed by ousted former Prime Minister Thaksin Shinawatra. Puea Thai, popular in rural north and northeastern provinces, is widely expected to win the most seats in the next election.

But Abhisit is expected to survive the motion during a vote Wednesday with strong support from his six-party coalition.

“I’m here to ask for justice for the victims of the clashes. There has to be a proper investigation instead of the government blaming terrorists for everything,” Jatuporn Prompan, a red-shirt leader and Puea Thai lawmaker, told reporters before the debate.

Puea Thai speakers, broadcast live on television, said excessive and illegal measures, such as night-time operations and the use of live ammunition, were used by troops in attempts to surround two protest sites and disperse demonstrators.

Abhisit defended the actions, saying Monday shadowy militants lurking among peaceful demonstrators triggered the bloodshed, which he said was aimed at trying to discredit and topple his government.

“The government and the security forces had no intention to hurt civilians but what happened followed an armed group’s attack on troops and civilians which led to clashes,” Abhisit said.

CIVILIAN DEATHS IN SPOTLIGHT

The mostly rural and urban poor protesters, broadly allied with Thaksin, their spiritual leader and assumed financier, have demanded a snap election, claiming Abhisit came to power illegitimately in December 2008 through parliamentary backroom dealing with the help of the military.

Puea Thai was formed after the pro-Thaksin ruling People’s Power Party was dissolved for electoral fraud. It’s previous incarnation, Thai Rak Thai, was disbanded after the 2006 coup that removed Thaksin, who lives in self-imposed exile to avoid a jail term for graft and new charges of terrorism.

The violence has taken a heavy toll on Thailand’s economy. Figures released Monday showed Thai consumption fell in April from March, when the protest first began, meaning the central bank is unlikely to raise rates this week.

The debate will also focus public attention on the deaths of six civilians, including a volunteer nurse, at a Buddhist temple within the sprawling protest encampment in downtown Bangkok that was supposed to be a safe house and a no-weapons zone.

Opposition parliamentarian Anudith Nakornthap showed a photograph of marksmen in army uniform pointing rifles in the direction of the temple from an elevated train track, saying that troops shot at unarmed protesters within.

But Deputy Prime Minister Suthep Thaugsuban said the photo may have been taken the day after troops had secured the area.

Abhisit Saturday said autopsies showed that four of the six people found dead at the temple were shot on level ground and not from a higher trajectory.

The preliminary investigations also showed the victims were shot in the back, chest and arms, in some cases as many as three times. The government has claimed that the unknown gunmen may have been firing from the back of the temple.

(Writing by Ambika Ahuja; Editing by Martin Petty and Miral Fahmy)

Thai opposition challenge PM over deadly crackdown

BANGKOK, May 31 (Reuters) – Thailand’s parliamentary opposition accused Prime Minister Abhisit Vejjajiva of human rights abuses on Monday in a no-confidence motion centred on the use of violence during a crackdown on anti-government protests.

The two-day debate aims to focus attention on tough measures used to break up the “red shirt” protests which ended on May 19, and could force Abhisit to defend the firing of live ammunition by troops during a six-week period in which 88 people were killed and nearly 2,000 wounded.

The opposition have also accused Abhisit and five cabinet ministers of corruption and economic mismanagement.

The no-confidence motion is led by the Puea Thai Party backed by ousted former Prime Minister Thaksin Shinawatra. Puea Thai, popular in rural north and northeastern provinces, is widely expected to win the most seats in the next election.

But Abhisit is expected to survive the motion during a vote on Wednesday with strong support from his six-party coalition.

“I’m here to ask for justice for the victims of the clashes. There has to be a proper investigation instead of the government blaming terrorists for everything,” Jatuporn Prompan, a red-shirt leader and Puea Thai lawmaker, told reporters before the debate.

Puea Thai speakers, broadcast live on television, said excessive and illegal measures, such as night-time operations and the use of live ammunition, were used by troops in attempts to surround two protest sites and disperse demonstrators.

Abhisit defended the actions, saying on Monday shadowy militants lurking among peaceful demonstrators triggered the bloodshed, which he said was aimed at trying to discredit and topple his government.

“The government and the security forces had no intention to hurt civilians but what happened followed an armed group’s attack on troops and civilians which led to clashes,” Abhisit said.

CIVILIAN DEATHS IN SPOTLIGHT

The mostly rural and urban poor protesters, broadly allied with Thaksin, their spiritual leader and assumed financier, have demanded a snap election, claiming Abhisit came to power illegitimately in December 2008 through parliamentary backroom dealing with the help of the military.

Puea Thai was formed after the pro-Thaksin ruling People’s Power Party was dissolved for electoral fraud. It’s previous incarnation, Thai Rak Thai, was disbanded after the 2006 coup that removed Thaksin, who lives in self-imposed exile to avoid a jail term for graft and new charges of terrorism.

The violence has taken a heavy toll on Thailand’s economy. Figures released on Monday showed Thai consumption fell in April from March, when the protest first began, meaning the central bank is unlikely to raise rates this week.

The debate will also focus public attention on the deaths of six civilians, including a volunteer nurse, at a Buddhist temple within the sprawling protest encampment in downtown Bangkok that was supposed to be a safe house and a no-weapons zone.

Opposition parliamentarian Anudith Nakornthap showed a photograph of marksmen in army uniform pointing rifles in the direction of the temple from an elevated train track, saying that troops shot at unarmed protesters within.

But Deputy Prime Minister Suthep Thaugsuban said the photo may have been taken the day after troops had secured the area.

Abhisit on Saturday said autopsies showed that four of the six people found dead at the temple were shot on level ground and not from a higher trajectory.

The preliminary investigations also showed the victims were shot in the back, chest and arms, in some cases as many as three times. The government has claimed that the unknown gunmen may have been firing from the back of the temple. (Writing by Ambika Ahuja; Editing by Martin Petty and Miral Fahmy)

Thai political battle moves from streets to courts

Bangkok, May 27 (DPA) The battle between the Thai government and supporters of coup-ousted former prime minister Thaksin Shinawatra has moved off the streets and into the courts, officials said Thursday.

A week after Thai troops and armoured vehicles broke up a two-month demonstration by Thaksin supporters in the heart of Bangkok, the government has initiated a multi-pronged legal offensive against the former premier and his backers.

‘In fact, it’s a good sign to have legal battles instead of street battles,’ government spokesman Panithan Wattanayankorn said Thursday. ‘It shows the system is functioning again.’

Thai police were expected to formally seek the help of Interpol next week to arrest and extradite Thaksin to face a charge of terrorism for his alleged role in financing and organising the protests. Unrest surrounding the demonstrations resulted in 88 deaths and 1,885 injuries.

Thaksin’s lawyers filed an appeal Wednesday, seeking to revoke an arrest warrant issued against him on terrorism charges the day before.

In his first published reaction to the terrorism charge, Thaksin said in an interview with the Australian public broadcaster ABC Thursday that he did not bankroll the so-called red-shirt rebellion and Interpol should ignore the warrant for his arrest.

‘We never, we never, engage in violence,’ Thaksin said. ‘This (charge) is clearly politically motivated, and there is no ground. …Interpol always found out that the information that the Thai government give is unreliable and is politically motivated.’

Thaksin denied that protesters had set the fires that gutted several major buildings in Bangkok May 19, saying they did not have the technical capabilities to do so.

Thaksin was removed from office in 2006 by a bloodless army coup and jumped bail after he was charged and later convicted of abuse of power by a Thai court. He is currently living in self-imposed exile in the tiny European country of Montenegro.

Panithan admitted the government of Prime Minister Abhisit Vejjajiva faces an uphill battle in restoring public confidence after the violence in Bangkok.

He said an independent panel would be convened to investigate the upheaval.

In addition, Panithan said legal cases were due to be submitted next month against anti-Thaksin ‘yellow shirt’ protesters who closed down Bangkok’s two international airports in late 2008.

Failure to prosecute those protesters, who support Abhisit’s government, was one of the main criticisms made by the pro-Thaksin red shirts, who argued that a double standard was being applied.

Panithan said the government was working hard to counter rumours that have proliferated in the bitterness that has followed the Bangkok street battles.

He said reports that nine bodies had been found last week in the basement of the gutted Central World shopping centre were false.

The spokesman also denied rumours that Arisman Phongruangrong, a key leader of the anti-government protest who disappeared last week, had been killed by security forces.

‘Arisman is still at large,’ Panithan said. ‘We can’t confirm his whereabouts. We are worried about his safety too. If something happened to him, then the blame would come to us.’