Thursday, April 19, 2012
PHARMA COMPANY SENTENCED TO PAY $322 MILLION FOR UNLAWFUL PROMOTION OF VIOX
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, April 19, 2012
U.S. Pharmaceutical Company Merck Sharp & Dohme Sentenced in Connection with Unlawful Promotion of Vioxx. Judge Imposes Nearly $322 Million Fine For Illegal Marketing
American pharmaceutical company Merck, Sharp & Dohme was sentenced by U.S. District Court Judge Patti B. Saris in Boston to pay a criminal fine in the amount of $321,636,000 in connection with its guilty plea related to its promotion and marketing of the painkiller Vioxx (rofecoxib), the Justice Department announced today. In December 2011, Merck pleaded guilty to violating the Food, Drug and Cosmetic Act (FDCA) for introducing a misbranded drug, Vioxx, into interstate commerce.
Merck’s guilty plea was part of a global resolution involving its illegal promotional activity. In November 2011, Merck entered into a civil settlement agreement under which it will pay $628,364,000 to resolve additional allegations regarding off-label marketing of Vioxx and false statements about the drug’s cardiovascular safety. Of the total civil settlement, $426,389,000 will be recovered by the United States, and the remaining share of $201,975,000 will be distributed to the participating Medicaid states. The settlement and today’s sentencing conclude a long-running investigation of Merck’s promotion of Vioxx, which was withdrawn from the marketplace in September 2004.
Merck’s criminal plea related to the misbranding of Vioxx by promoting the drug for treating rheumatoid arthritis, before that use was approved by the Food and Drug Administration (FDA). Under the provisions of the FDCA, a company is required to specify the intended uses of a product in its new drug application to FDA. Once approved, the drug may not be marketed or promoted for so-called “off-label” uses – any use not specified in an application and approved by FDA – unless the company applies to the FDA for approval of the additional use. The FDA approved Vioxx for three indications in May 1999, but did not approve its use for rheumatoid arthritis until April 2002. In the interim, for nearly three years, Merck promoted Vioxx for rheumatoid arthritis, conduct for which it was admonished in an FDA warning letter issued in September 2001.
At today’s sentencing, Judge Saris said in substance that off label promotion has been a big problem, she has seen a barrage of off-label marketing cases, and that she hoped that the size of today’s settlement and the fact that the government continues to press these cases will send a signal to the industry that this is not acceptable conduct.
The parallel civil settlement covered a broader range of allegedly illegal conduct by Merck. The settlement resolved allegations that Merck representatives made inaccurate, unsupported, or misleading statements about Vioxx’s cardiovascular safety in order to increase sales of the drug, resulting in payments by the federal government. It also resolved allegations that Merck made false statements to state Medicaid agencies about the cardiovascular safety of Vioxx, and that those agencies relied on Merck’s false claims in making payment decisions about the drug. Finally, like the criminal plea, the civil settlement also recovered damages for allegedly false claims caused by Merck’s unlawful promotion of Vioxx for rheumatoid arthritis.
"The United States will not tolerate unlawful conduct by pharmaceutical companies," said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department's Civil Division. "As the court's sentence makes clear, those who put profits before patient safety by promoting their products for unapproved uses will be prosecuted and held accountable."
“We are pleased to see this case brought to a conclusion with the recovery of over three hundred million dollars in criminal fines, and a total of almost a billion dollars in combined civil and criminal penalties. The severity of these criminal and civil sanctions should serve as a reminder of this Office, and this department’s unwavering commitment to holding drug companies fully accountable for failures to comply with their public safety and marketing obligations, and to recovering taxpayer funds that have gone towards the purchase of illegally marketed products,” announced Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “Any marketing activity that ignores the importance of FDA approval, or that makes unsupported safety claims about a drug is unacceptable, and will be pursued vigorously in both the criminal and civil arena.”
As part of the settlement, Merck also agreed to enter into an expansive corporate integrity agreement with the Office of Inspector General of the Department of Health and
Human Services (HHS-OIG), which will strengthen the system of reviews and oversight procedures imposed on the company. Although Vioxx is no longer on the market, this ongoing monitoring of Merck’s conduct is aimed to deter and detect similar conduct in the future.
“If all pharmaceutical manufacturers complied with the law, there would be no need for law enforcement actions,” said Susan Waddell, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “But until they stop abusing the health care system and putting profits ahead of patient safety, OIG will continue to vigorously pursue corporations that flout the law.”
“Today’s announcement demonstrates the commitment of FDA's Office of Criminal Investigations to pursue investigations of companies that disregard their regulatory obligations and place profits over the public’s health,” said Mark Dragonetti, Special Agent in Charge for the New York Field Office. “We commend the hard work of the U.S. Attorney's Office and our law enforcement counterparts in bringing about this result.”
“In 2004, the FBI began participating in a seven year investigation that led to Merck's decision to plead guilty to a criminal violation of federal law related to its promotion and marketing of Vioxx and to pay nearly a billion dollars in a criminal fine and civil damages,” said Richard DesLauriers, Special Agent in Charge of the FBI in Boston. “Merck now knows that no corporation is immune from being held accountable for criminal and civil violations of law and also knows why the FBI, its federal law enforcement partners, and the U.S. Attorney's Office have earned a national reputation for leading the government’s effort to detect, deter and prevent health care fraud.”
This case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts. The investigation was conducted by Office of Inspector General of the Deapartment of Health and Human Services, the FBI, the Office of Criminal Investigations for the FDA, the Veterans Administration’s Office of Criminal Investigations, the Office of the Inspector General for the Office of Personnel Management, the National Association of Medicaid Fraud Control Units, and the offices of various state attorneys general.
SECRETARY OF DEFENSE PANETTA SPEAKS BEFORE HOUSE ARMED SERVICES COMMITTEE
Statement on Syria before the House Armed Services Committee
As Delivered by Secretary of Defense Leon E. Panetta, Washington D.C., Thursday, April 19, 2012
Chairman McKeon and Representative Smith, thank you for the opportunity to discuss the tense and fluid situation in Syria.
Widespread demands for political change in Syria started more than a year ago. Rather than meeting these legitimate demands, the regime of Bashar al-Assad turned instead to violence against its own people. That violence has been brutal and devastating. It has put the Syrian people in a desperate and difficult situation. It has outraged the conscience of all good people. And it has threatened stability in a very important part of the world.
The United States has made clear that the Assad regime has lost its legitimacy and that this crisis has no effective solution without Assad's departure. As the President has stated, Assad must go.
Recent days are testing whether the Assad regime will live up to all of its responsibilities to the Syrian people and to the international community. Restoring calm to cities and towns across Syria is just one test for Assad in the days ahead. Assad is responsible for fully abiding by the transition plan outlined by Joint Special Envoy Kofi Annan. He also faces deep skepticism about his motives, a skepticism based on a long train of Assad's deceitful actions to date, including broken promises to his own people and to the international community.
The United States is committed to holding the Syrian regime to these obligations. We are leading international efforts to help stop the violence and support a peaceful political transition in Syria.
We know achieving that end is a tough task. From every angle the situation in Syria is enormously complex. There is no silver bullet. At the same time, the situation is of grave consequence to the Syrian people. There are many others who are affected by what happens in Syria, including Syria's neighbors – Turkey, Lebanon, Iraq, Israel, and Jordan – and all nations with a vital interest in the Middle East. Meanwhile, Iran is Syria's only ally in the region. No other country stands to lose more than Iran from the eventual fall of the Assad regime, which is why Iran is supporting the regime with material, financial and technical assistance.
We also know that the complex problems in Syria cannot all be solved through the unilateral actions of the United States or any other country. They demand a coordinated international response that is uniquely tailored to the situation.
There are, however, certain principles that have guided the Administration's response to unrest across the Middle East. These basic principles have shaped our responses in Tunisia, Egypt, Libya, and now Syria: first, we oppose the use of violence and repression by regimes against their own people; second, we support the exercise of universal human rights; and third, we support political and economic reforms that can meet the legitimate aspirations of ordinary people throughout the region.
Our policy toward Syria is clear: we support a political and democratic transition that fulfills the Syrian people's aspirations. To support that objective, the United States is leading international efforts along five tracks:
First, we are supporting efforts to maintain international pressure and advance transition in Syria. We join with our partners in the United Nations Security Council, including Russia and China, in calling for the urgent, comprehensive, and immediate implementation of all aspects of the Annan plan.
Second, we are further isolating the Assad regime. We are encouraging other countries to join the United States, the European Union, and the Arab League in imposing strong sanctions against it. These sanctions are putting Assad under greater pressure than ever before;
Third, we are strengthening and unifying the non-violent political opposition in Syria. The United States is in the process of providing direct non-lethal support, including communications and medical equipment, to the civilian-led opposition. We are taking these actions in concert with similar steps taken by the Friends of Syria and other international partners to assist the opposition;
Fourth, we are providing emergency humanitarian assistance to the Syrian people, and we are working to broaden our efforts at relief, with a total commitment so far of $25 million; and
Fifth, we are reviewing and planning for a range of additional measures that may be necessary to protect the Syrian people.
By acting along these lines, we are increasing pressure on the Assad regime every day. Make no mistake – one way or another, this regime ultimately will meet its end.
There are legitimate questions about what steps are necessary to achieve this end, with some arguing for an approach similar to the one we took in Libya.
The fact is that our recent experience in Libya is helping to inform the approach of the United States to Syria:
First, our efforts are strengthened by multi-lateral, international consensus;
Second, we should maintain clear regional support from the Arab world;
Third, we should offer substantial U.S. contributions where we can bring unique resources to bear;
Fourth, we should have a clear legal basis for our approach;
Fifth, and finally, our approach must keep all options on the table, while recognizing the limitations of military force.
But the situation in Syria is different from the one in Libya in important ways:
In Libya, there was widespread international support in the Arab world and elsewhere, and clear Security Council authorization, for military intervention. No such consensus currently exists regarding Syria;
The opposition is not as well organized and does not control territory;
We must also be mindful, as Secretary Clinton has noted, of the possibility that outside military intervention will make a volatile situation even worse, and place even more innocent civilians at risk.
The United States has made clear that we are on the side of the Syrian people. They must know that the international community has not underestimated either their suffering or their impatience. The Defense Department has reviewed and is continuing to plan for a variety of possible scenarios should the President determine that further steps are necessary. In the meantime, our only clear path is to keep moving diplomatically in a resolute and deliberate manner with the international community to find a way to return Syria to the Syrian people.
Thank you.
U.S.-AZERBAIJAN ECONOMIC PARTNERSHIP
FROM: U.S. STATE DEPARTMENT
U.S.-Azerbaijan Economic Partnership Commission
Media Note Office of the Spokesperson Washington, DC
April 19, 2012
The U.S. Department of State welcomed the Minister of Finance Samir Sharifov of Azerbaijan and his delegation for the third meeting of the U.S.-Azerbaijan Economic Partnership Commission (EPC), which met yesterday in Washington. Participating U.S. Government agencies included the Departments of State, Energy, Justice, and Treasury; Office of the United States Trade Representative; United States Agency for International Development (USAID); Export-Import Bank of the United States; and United States Trade and Development Agency.
This strategic dialogue, co-chaired by Under Secretary of State for Economic Growth, Energy, and the Environment Robert D. Hormats and Minister Sharifov, explored opportunities for further economic and commercial cooperation between the United States and Azerbaijan. This high-level meeting included sessions led by Assistant Secretary of State for Economic and Business Affairs Jose W. Fernandez, USAID Assistant Administrator for Europe and Eurasia Paige Alexander, Assistant Secretary of State for South and Central Asian Affairs Robert Blake, Assistant Secretary of Energy for Electricity Delivery and Energy Reliability Patricia A. Hoffman, and Special Envoy for Eurasian Energy Ambassador Richard Morningstar. The delegations discussed economic diversification, financial services, energy, trade and investment, and new, cooperative initiatives. Participants also discussed expanding the agreement under which the Government of Azerbaijan co-finances development projects implemented by USAID in Azerbaijan.
U.S. GOVERNMENT OFFICIALS URGE CONGRESS TO REMOVE SOME SATELLITE TECH FROM EXPORT CONTROLS
FROM: AMERICAN FORCES PRESS SERVICE
Report Urges Lifting Some Satellite Export Controls
By Cheryl Pellerin
American Forces Press Service
American Forces Press Service
WASHINGTON, April 18, 2012 - Officials from the Defense and State departments released a report today that urges Congress to move communications and some remote-sensing satellites off the tightly controlled U.S. Munitions List and into the commercial enterprise.
The report, conducted in accordance with section 1248 of the National Defense Authorization Act for fiscal 2010, was prepared by technical and space policy experts from DOD and State, with support from the intelligence community and NASA.
In a briefing today from the National Space Symposium in Colorado Springs, Colo., Gregory L. Schulte, deputy assistant secretary defense for space policy, said the report "reflects a very thorough review ... that looked item by item, technology by technology, to assess the risk in moving specific items from the U.S. Munitions List to the Commerce Control List."
Schulte was joined by Lou Ann McFadden, chief of the Defense Technology Security Administration's strategic issues division.
The report summarizes a risk assessment of U.S. space export control policy, concluding that most commercial communications and remote sensing satellites and their components can be moved from the USML to the CCL without harming national security. The items include communications satellites that contain no classified components, and remote-sensing satellites with performance parameters below certain thresholds.
The satellites and their associated systems, subsystems, parts and components make up what Schulte described as "hundreds of thousands of items" that already are being sold commercially by companies around the world.
U.S. companies couldn't sell the same satellites and components because of restrictions imposed by the items' listing on the USML or control under the International Traffic in Arms Regulations, called ITAR, administered by the State Department.
"We believe that, if Congress is willing, the approach laid out in this report does two things," Schulte said.
"It can strengthen our national security by energizing the industrial base that is so important to us," he added, "and by allowing our industry to compete on the global market for satellites."
In a March 8 hearing before the House Armed Services Committee, Schulte called the approach one of "higher fences around fewer items," and noted that no such changes could be made without legislation.
According to the report, in the interests of national and economic security, the president, and not Congress, should have the authority to determine the export-control status of satellites and space-related items.
As part of that recommendation, the report said DOD should have the authority to apply appropriate monitoring and other export-control measures to individual cases to most effectively reduce national security risks.
A fact sheet released by the White House today noted that the recommended items are controlled on the [USML] by statute, based on the requirements of the National Defense Authorization Act for fiscal 1999.
This makes them "the sole USML items for which the president does not have the legal authority to appropriately adjust the controls to ensure they meet current and anticipated U.S. national security requirements," the fact sheet said, "and to ensure they do not unintentionally harm the U.S. satellite industry and its supplier base."
Congress and the Obama administration "recognize the importance of this critical sector to the nation's national and economic security," the fact sheet said.
"This in-depth report shows that the United States can safely modify the export controls placed on satellites and related component technology that are widely available, while maintaining firm control on systems and technologies deemed truly critical to national security," Jim Miller, acting undersecretary of defense for policy, said today in a statement.
The report confirmed the need for some space-related items to remain on the list -- those that contain critical components, technologies and implicit expertise that give the nation a military or intelligence advantage in space.
The items include satellites that perform purely military or intelligence missions, high-performance remote-sensing satellites, services in support of foreign launch operations for USML- and CCL-designated satellites, and others.
"Implementing the recommendations in this report will facilitate cooperation with U.S. allies and export-control-regime partners," Miller said.
USS LYNDON B. JOHNSON WILL BE THE NAVY'S NEXT DESTROYER
FROM: U.S. NAVY
ATTORNEY GENERAL HOLDER'S SPEECH AT POLICE CHIEF MICHAEL MALONEY HAMPTON'S MEMORIAL SERVICE
FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Memorial Service for Police Chief Michael Maloney Hampton, N.H. ~ Thursday, April 19, 2012
I am honored to be with you today. And I am grateful for the opportunity to pay tribute – on behalf of our nation’s Department of Justice, and America’s law enforcement community – to the enduring contributions, and extraordinary courage, that defined and distinguished the life of Chief Michael Maloney.
I want to thank the entire Maloney family, especially Chief Maloney’s wife, Peg – and his children, parents, and stepparents – for affording me the privilege of standing with you, and with the members of the Greenland Police Department – including Chief Tara Laurent, whose steady leadership has been a comfort to us all during this difficult time. It’s also a special honor to salute four outstanding members of the New Hampshire Attorney General’s Drug Task Force, whose actions in the face of grave danger – and whose ongoing recoveries – are an inspiration to us all. Detectives Turner, Kulberg, Kukesh, and Murphy, I know how hard each of you has worked to be here today – and we’re so very grateful that you’re with us. Please know that you, and your families, will remain in our thoughts and prayers as you continue to heal – and to mourn this heartbreaking, and tragic, loss. You four are true heroes.
Here at Michael Maloney’s beloved alma mater, on the field where he once played football, and among his closest colleagues and oldest friends – we bid farewell to a proud native son, a dedicated public servant, a loving husband, father, and grandfather – and also a hero in every sense of the word.
From the time he walked this gridiron, Michael Maloney was a leader. Shortly after he graduated from high school, he discovered a passion for public service that came to shape his life – and improved so many others. Although he could have chosen an easier path – or a safer one – he wanted to use his skills and many talents to help people and communities in need. He wanted to make a difference. And, by any measure, he succeeded.
There’s no question that the pain we feel – and the shock and sorrow that have gripped this community – are all the more acute because this was supposed to be a time of celebration. After a distinguished law enforcement career spanning more than a quarter century – including several years as Chief of the North Hampton Police Department and a dozen as Greenland’s Police Chief – Michael Maloney was just days away from a well-deserved retirement. He was looking forward to new opportunities, and was eager to spend more time with his beloved family – especially its newest addition, his grandson “MJ.”
But just as surely as Chief Maloney was devoted to his family, he also was deeply committed to the citizens he served – and deeply proud to be a part of this community.
Over the past week, Chief Maloney has been hailed, throughout our great country, as a “true patriot,” a “cop’s cop,” and a “working police chief” – who would never ask anything of his fellow officers that he wouldn’t do himself. To those who served with Chief Maloney – and for his law enforcement colleagues nationwide – he is a role model. And his fearlessness, selflessness, and willingness to put his own life on the line to protect those around him will never be forgotten.
Throughout his career, these qualities were evident – but perhaps never more so than on his last day of service.
That evening, not far from here – in the jurisdiction Chief Maloney had sworn to protect – he and his colleagues were preparing to confront a dangerous criminal with a history of violence. Despite the risks, Chief Maloney chose not only to be involved – but to help lead this operation. Tragically, when he and his team moved in, these five brave officers were met with gunfire.
But even when his comrades were wounded, Chief Maloney did not fall back. He stood his ground and stayed with his team – working to help the others to safety.
This act of valor – this ultimate sacrifice, made so that others might survive – exemplified the life that Michael Maloney led, and the career of service that he built. Today, let us remember not only how he died but, more importantly, how he lived.
Although we can never hope to repay the debt that we owe him – or to understand his senseless murder – let it never be said that he died in vain.
In the efforts of every law enforcement officer in – and far beyond – this crowd, Chief Maloney’s work will go on. In the thanks of a grateful nation – and the embrace of the community he gave his life to protect – his legacy will live on. And in each one of us – and all those who have been inspired by his example – his work to make a difference, and to help those in need, will continue.
So this afternoon, and in the days ahead, let us honor his memory – and profound sacrifice – with our own deeds. Let us rally around the family he loved so dearly – as well as the department, and community, he served so well. And let us take comfort in the fact that – although Michael Maloney left this world far too suddenly and far too soon – there can never be any doubt that – through all he contributed, achieved, and inspired in his life – he left it a better place.
GSA'S ACTING HEAD ADMINISTRATOR ADDRESSES "GSA'S CULTURE OF WASTEFUL SPENDING"
FROM: GENERAL SERVICES ADMINISTRATION
Hearing on “Addressing GSA's Culture of Wasteful Spending”
DANIEL TANGHERLINI
ACTING ADMINISTRATOR
U.S. GENERAL SERVICES ADMINISTRATION
BEFORE THE COMMITTEE ON
OVERSIGHT AND GOVERNMENT REFORM
"ADDRESSING GSA'S CULTURE OF WASTEFUL SPENDING"
April 16, 2012
Good afternoon Chairman Issa, Ranking Member Cummings, and Members of the Committee. My name is Daniel Tangherlini, and I am the Acting Administrator of the U.S. General Services Administration (GSA).
I appreciate the opportunity to come before the committee today. First and foremost, I want to state my agreement with the President that the waste and abuse outlined in the Inspector General’s (IG) report is an outrage and completely antithetical to the goals and directives of this Administration. We have taken strong action against those officials who are responsible and will continue to do so where appropriate. We are taking steps to improve internal controls and oversight to ensure this never happens again. I look forward to working in partnership with this Committee to ensure there is full accountability for these activities so that we can begin to restore the trust of the American people.
At the same time I am committed to renewing GSA’s focus on its core mission: saving taxpayers’ money by efficiently procuring supplies, services, and real estate, and effectively disposing of unneeded government property. There is a powerful value proposition to a single agency dedicated to this work, especially in these fiscal times, and we need to ensure we get back to basics and conduct this work better than ever.
Promoting Efficiency and Reducing Costs –
The shocking activities and violations outlined in the IG report run counter to every goal of this Administration. The Administration makes cutting costs and improving the efficiency of the Federal government a top priority. On June 13, 2011, the President issued Executive Order (E.O.) 13576, “Delivering an Efficient, Effective, and Accountable Government.” This EO emphasized the importance of eliminating waste and improving efficiency, establishing the Government Accountability and Transparency Board to enhance transparency of Federal spending and advance efforts to detect and remediate fraud, waste, and abuse.
The President further established the goals of this Administration in E.O. 13589, “Promoting Efficient Spending,” which set clear reduction targets for travel, employee information technology devices, printing, executive fleets, promotional items, and other areas. The President’s FY 2013 budget request for GSA would achieve $49 million in savings under this EO, including $9.7 million in travel.
Holding Officials Responsible –
It is important that those responsible for the abuses outlined in the IG’s report be held accountable. We are taking aggressive action to address this issue and to ensure that such egregious actions will never occur again. We have taken a series of personnel actions, including the removal of two senior political appointees. We have also placed ten career employees on administrative leave, including five senior officials.
I intend to uphold the highest ethical standards at this agency and take any action that is necessary and appropriate. If we find any irregularities, I will immediately engage the Inspector General. As I indicated in my joint letter with GSA’s Inspector General, I intend to set a standard that complacency will not be tolerated, and waste, fraud, or abuse must be reported.
I believe this commitment is critical, not only because we owe it to the American taxpayers, but also because we owe it to the many GSA employees who conform to the highest ethical standards and deserve to be proud of the agency for which they work.
Taking Action –
I have taken a number of steps since I began my tenure on April 3, 2012 to ensure this never happens again. GSA has consolidated conference oversight in the new Office of
Administrative Services, which is now responsible for:
Oversight of contracting for conference space, related activities, and amenities;
Review and approval of proposed conferences for relation to GSA mission;
Review and approval of any awards ceremonies where food is provided by the Federal government;
Review and approval of conference budgets as well as changes to those budgets;
Oversight and coordination with GSA conference/event planners and contracting officers on conference planning;
Review of travel and accommodations related to conference planning and execution;
Handling of procurement for all internal GSA conferences; and
Development of mandatory annual training for all employees regarding conference planning and attendance.
Additionally, we have cancelled the 2012 Western Regions Conference as well as a number of other conferences that only or primarily involved internal staff. To date, I have cancelled 35 conferences,1 saving taxpayers $995,686. As we put in place greater controls and oversight, we are reviewing each event to make sure that any travel is justified by a mission requirement.
We have also begun review of employee relocations at government expense, and will require all future relocations to be approved centrally by both the Chief People Officer and the Chief Financial Officer.
To strengthen internal controls, we are bringing in all Public Buildings Service regional budgets under the direct authority of GSA’s Chief Financial Officer. The autonomy of regional budget allocations is, in part, what led to this gross misuse of taxpayer funds on both the regional conference and the employee rewards program known as “Hats Off.” The additional approvals and centralized oversight are intended to mitigate the risk of these problems.
In response to concerns over spending on employee rewards programs, I have eliminated the “Hats Off” store that was operating in the Pacific Rim Region, as well as all similar GSA programs.
I am moving aggressively to recapture wasted taxpayer funds. As a first step, on April 13th, I directed that letters be sent to Bob Peck, Jeff Neely, and Robert Shepard demanding reimbursement for private, in-room receptions at the Western Regions Conference. I will pursue other fund recovery opportunities.
I am engaged in a top to bottom review of this agency. I will continue to pursue every initiative necessary to ensure this never happens again and to restore the trust of American taxpayers.
Conclusion –
The unacceptable and inappropriate activities at the Western Regions Conference stand in direct contradiction to the express goals of this agency and the Administration, and I am committed to ensuring that we take whatever steps are necessary to hold those responsible accountable and to make sure that this never happens again. At the same time, I believe that the need for a high quality GSA is more acute today than in any time in its history. We need to refocus this agency and get back to the basics: streamlining the administrative work of the Federal government to save taxpayers money.
I look forward to working with this Committee moving forward and I welcome the opportunity to answer any questions. Thank you.
_______________________________________
FUNDING OF INTERNATIONAL PROGRAMS ON INTELLECTUAL PROPERTY TRAINING
FROM: U.S. STATE DEPARTMENT
Intellectual Property Training Programs Funded
Media Note Office of the Spokesperson Washington, DC
April 19, 2012
As part of U.S. efforts to combat transnational crime and promote the protection of intellectual property rights (IPR) worldwide, the U.S. Department of State has approved twelve projects totaling $2.6 million in Fiscal Year 2011 anticrime funds. These projects will enable U.S. law enforcement agencies and diplomatic missions to collaborate on the delivery of IPR protection criminal enforcement training and technical assistance programs for foreign law enforcement partners.
Training and technical assistance in the investigation and prosecution of IPR crime will be provided to foreign law enforcement partners in nations across the Pacific Rim, Latin America, and sub-Saharan Africa. The Bureau of International Narcotics and Law Enforcement Affairs and the Bureau of Economic and Business Affairs selected the projects after considering input from the U.S. Intellectual Property Enforcement Coordinator, other federal agencies, our overseas missions, Congress, and industry representatives.
The twelve projects are:
1) Africa - Western Regional Workshops $182,000
Training for West African customs authorities on methods to identify and seize infringing goods.
2) Africa - Sub-Saharan Regional Workshops $525,920
Workshops for Sub-Saharan African law enforcement partners focusing on border enforcement, following the money trail, organized crime involvement in trafficking of counterfeit medicines, and gathering electronic evidence.
3) Africa - East Central Regional Workshops $255,936
Regional training for East African law enforcement authorities in combating counterfeit medicines which threaten human health and safety.
4) ASEAN $242,329
A series of workshops for Association of Southeast Asian Nation (ASEAN) member state judges and prosecutors focused on judicial and prosecutorial management of IPR cases, especially those that involve transnational organized crime.
5) Brazil $150,644
Training seminars through the U.S. Embassy partnership with the Brazilian Government focusing on “notorious markets” identified in the United States Trade Representative (USTR) Special 301 Out-Of-Cycle reviews.
6) Chile $100,000
Training for Chilean judges on handling IPR crimes cases, including development of a judicial bench book and follow up monitoring by the U.S. Mission.
7) Colombia $70,000
Training for the Colombia National Police on combating IPR crime.
8) South Asia Regional $210,185
Joint workshops with Indian, People’s Republic of China, and ASEAN IPR enforcement officials to strengthen and build stronger cross-border partnerships.
9) Mexico $438,814
Training for Mexican enforcement partners on following the money trail, digital evidence in online piracy cases, and border and customs enforcement.
(10) Philippines $175,171
Seminars for Philippine judges and prosecutors on courtroom and case management procedures in IPR cases.
(11) Thailand $184,000
Training for Thai judges, customs officials, and prosecutors to strengthen skills needed to carry out Thai IPR reforms.
(12) Turkey $106,375
Training for Turkish judges and law enforcement officials involved in new special IPR courts.
STATE DEPARTMENT ON USE OF SANCTIONS
FROM: U.S. STATE DEPARTMENT
Remarks to the ACIEP Sanctions Subcommittee
Remarks Jose W. Fernandez
Assistant Secretary, Bureau of Economic and Business Affairs Washington, DC
April 11, 2012
INTRODUCTION
You know, I spend a lot of time doing very positive work in a number of areas at the State Department. One area we focus on in the Bureau of Economic and Business affairs is economic sanctions, which I know can sometimes be viewed as “the dark side” of our work. We have many carrots at our disposal, but sanctions work is our big stick. But the message that I want all of you to walk away with today is that sanctions regimes can be an effective way to promote some very positive changes around the world.
I will begin my remarks with a brief description of some of the goals and work of our sanctions team, some of whom are here to help answer your more difficult questions, before I present you with a few case studies on sanctions, and I will conclude with how we see our work going forward.
However, I am particularly interested in hearing from you. I’d like to hear your thoughts on the role you envision for U.S. sanctions regimes in our overall economic tradecraft and our message to the business community, so I encourage you to present any ideas or questions you may have at the end of my comments.
THE WORK OF THE SANCTIONS TEAM AT STATE
Sanctions are a foreign policy tool somewhere between hard and soft power, which can play a significant role in encouraging bad actors to change their behavior. Under the Obama Administration, sanctions have proven to be one of our most effective means of increasing pressure on rogue actors and regimes without resorting to force.
Secretary Clinton has noted that one of our country’s great challenges is advancing our global leadership at a time when power is often measured and exercised in economic terms. Our sanctions regimes are a critical part of our economic outreach, and we envision an economic foreign policy in which promotion of business development meshes seamlessly with sanctions that simultaneously encourage our global partners to focus on responsible, innovative markets and isolate the world’s worst human rights abusers and weapons proliferators.
Additionally, the Department has been ramping up its focus on making our sanctions regimes as strong and effective as possible. Given the horrific events occurring in Iran and Syria over the past couple years, these improvements to our sanctions protocol are timely, and in sync with the Administration’s commitment to using sanctions in the most effective manner possible.
In light of this new focus, we have been expanding our sanctions team, adding six more people and bringing in a new Deputy assistant Secretary to focus wholly on our sanctions programs. We are aiming for a re-vamped sanctions Deputate by mid-summer.
Already, our economic sanctions experts are in constant contact with others at the State Department who also play a key role in sanctions policy, including our colleagues focused on non-proliferation, counter-terrorism, and human rights, and those on our country desks who coordinate our overall relationship with a country. Through this interaction, we ensure that our sanctions policies are focused in the right way so as to maximize their impact.
We hope that these changes will allow the State Department to coordinate more effectively with other agencies to wield targeted sanctions and other economic pressure against our adversaries.
Wherever possible, we have attempted to target our sanctions on individuals and entities within a country directly engaged in the activities that we seek to change. These targeted sanctions are sometimes referred to as “smart sanctions.” In doing so, we seek to make it clear that we are not targeting the population of a country but rather those in control who can stop the bad behavior of a particular regime.
CASE STUDY: LIBYA
Libya is an example of when sanctions can be most effective: in environments of international cooperation. When the international community cooperates on sanctions, targeted entities have a harder time avoiding them and the likelihood of success in effecting desired changes increases. These sanctions, in combination with an effective military pressure and support for Libyan rebel forces provided by the international coalition, helped isolate the Qadhafi regime, resulting in the regime’s ultimate downfall.
I will be traveling to Libya in a week’s time, and I will get a better sense of lessons learned from our sanctions regime while I am there.
As you all know, both the Administration and the international community have now passed measures that significantly ease sanctions on Libya. Though final winding down of the Libyan sanctions programs may take some additional time, this is a good example of how sanctions regimes can change over time based on the goals of each sanctions program and the situation on the ground.
CASE STUDY: BURMA
Although challenges remain, the Burmese Government has taken some positive steps toward democratization and civic openness since Than Sein became President in 2011. During her trip to Burma in December 2011, Secretary Clinton announced an “action-for-action” strategy to encourage reformers to take further steps.
As a result of Burma’s successful by-elections on April 1, Secretary Clinton announced on April 4 a series of steps that the United States is prepared to take as part of our action-for-action strategy.
Among steps on the sanctions front, these include a broad exemption from our Burma sanctions for a wide spectrum of non-profit activities. This will make it much easier for U.S
. entities and individuals to build schools, clinics, libraries, and other institutions in Burma. U.S. citizens will also be authorized to set up university exchange programs, public health initiatives, conservation projects and a host of other activities that will benefit the Burmese people.
This step is in line with the Secretary’s commitment during her visit to Burma to increase exchanges with the people, civil society organizations, and government.
We will also begin the process of a targeted easing of our ban on the export of U.S. financial services and investment, as part of a broader effort to help accelerate economic and political reform.
Our aim will be to recognize the reforms underway and take actions that assist the country's development and reform process. We will work closely with our allies and counterparts, including within our own government, to coordinate these changes.
CASE STUDY: SYRIA
Syria presents another example of international coordination. As it became clear that President Assad was not going to lead a democratic transition, and as the violence against the Syrian people increased, we felt it necessary to coordinate a strong international response.
We have worked systematically to increase our own pressures, including tough targeted sanctions against the Assad regime. At the same time, in literally hundreds of meetings and conversations, President Obama, Secretary Clinton, senior officials, our ambassadors, and others have steadily and systematically worked to build concerted international pressure.
Our aim was to build a strong international effort in support of the universal rights of the Syrian people, and to condemn and isolate the Assad regime. We recognized from the start that American leadership was crucial to this effort, but to have maximum impact in Syria, we wanted to lead the chorus of voices and pressures, not just make this a solo act.
This coordination led to similar actions by our partners and allies around the world, such as the EU and Canada, to isolate the Government of Syria from the international financial system and deprive it access to significant revenue streams that are generated by its petroleum sector.
Syria continues to pose challenges, and we continue to look at ways in coordination with our international partners to increase pressure on the Syrian regime. Again, this dire situation requires a chorus, not a solo.
CASE STUDY: IRAN
Iran remains one of our greatest foreign policy challenges, and our Iran sanctions regimes are one of our greatest tools in pressuring Iran to comply with its international obligations.
The United States and our international partners are determined to prevent Iran from acquiring a nuclear weapon. We remain committed to a dual-track policy that combines the use of pressure with engagement.
In response to Iran’s actions, which point to an Iranian nuclear weapons program, as well as to last fall’s Iranian plot to assassinate the Saudi ambassador to the United States, the United States and its international partners have continued a steady drumbeat of new sanctions measures. Let me review a few of the most recent developments.
First is Executive Order (E.O.) 13590, which President Obama issued in November. This Order targets the provision of goods and services to Iran’s upstream oil and gas industry and to Iran’s petrochemical sector. This order expands on existing sanctions, and authorizes sanctions on persons who knowingly support Iran in a way that could directly and significantly contribute to Iran’s ability to develop its petroleum and petrochemical sector.
These new measures will make it more difficult for Iran to circumvent existing sanctions by obtaining foreign expertise to assist in the development of its petroleum resources or dual-use items to refine petroleum in its petrochemical facilities. They will also help accelerate the decline of Iran’s already-deteriorating crude oil production.
In December, President Obama signed into law the National Defense authorization act (NDAA) for fiscal year 2012. This law provides for sanctions on foreign financial institutions for significant transactions, both petroleum and non-petroleum related, with the Central Bank of Iran (CBI) and designated Iranian financial institutions. These new sanctions are designed to target both the CBI and Iran’s crude oil revenues, while avoiding disruptions to international oil markets. We are reaching out to oil-consuming countries to help them respond to the new legislation and find alternatives to energy supplies from Iran.
These efforts have been successful. Most recently, the Secretary announced that 11 countries have qualified for an exception under the NDAA because they significantly reduced their imports of Iranian crude oil. These actions will reduce demand for Iranian crude and the revenues it needs to continue pursuing its nuclear aspirations.
In January, the European Union followed our lead and imposed strong sanctions of its own, imposing an embargo on Iranian crude and sanctioning the CBI. This multilateral approach has brought an unprecedented amount of pressure on Iran.
We also continue to enforce existing laws. For example, in January we imposed sanctions under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) on three companies for conducting business with Iran’s energy sector, specifically the provision of refined petroleum products to Iran. The firms are Zhuhai Zhenrong Corporation (China), Kuo Oil Pte. Ltd. (Singapore), and Fal Oil Company Ltd (UAE). These firms were among the biggest remaining suppliers of refined petroleum to Iran.
Ironically, though, we have been most effective when we haven’t imposed sanctions under these laws. In many cases, we have used the law as leverage to convince firms to discontinue their business with Iran. The Department does extensive outreach to foreign companies at risk of violating these regulations, and works with them and their governments to deter sanctionable activity in Iran. In this manner, we have prevented many companies across the world from doing business in Iran’s energy sector, and have cut off billions of dollars in potential investments in Iran.
These efforts, combined with our demonstrated resolve to impose sanctions when necessary, sends a clear message to our international partners in the business community: Although we are eager and enthusiastic to work with you to find alternate sources of energy, businesses that continue to support Iran’s energy sector and help facilitate Iran’s continued unwillingness to comply with its international nuclear obligations will face serious consequences.
We are committed to engagement, and we are hopeful that Iran's recent willingness to meet in the P5+1 Framework will lead to serious negotiations about its nuclear program. We believe that the united international front and increasing global pressure have been critical in getting Iran to return to the negotiating table. For that reason, we must continue to impose pressure through sanctions and other means until Iran addresses the international community's concerns over its nuclear program.
LOOKING FORWARD
We and others in the Administration and in Congress are always looking at new ways to further increase pressure on the worst regimes. We are especially focused now on additional measures to take against Iran and Syria. In any deliberations, we look to leverage the best possible outcome in line with U.S. foreign policy goals.
Our multifaceted approach to Economic Statecraft presents many opportunities for businesses around the world to grow and prosper working with the United States, while simultaneously staking a strong position, along with our global partners, that it cannot be business-as-usual with states that ignore the international community, flaunt illicit nuclear development, and commit terrible abuses on their own people. On sanctions, the United States is dedicated to a leadership role in developing a responsible and innovative global economic policy.
I welcome any questions or comments you may have, and my team is here to assist when things get very technical.
ISAF KILLED 13 INSURGENTS AND CAPTURED SIX SUSPECTS IN EASTERN AFGHANISTAN
FROM: AMERICAN FORCES PRESS SERVICE
Afghan, Coalition Forces Kill 13 Insurgents, Detain 6 Others
From an International Security Assistance Force Joint Command News Release
BAGRAM, Afghanistan, April 19, 2012 - Afghan and coalition forces killed 13 insurgents and captured six suspects during operations in eastern Afghanistan yesterday, military officials reported.
-- A coalition airstrike killed 10 armed insurgents posing an immediate threat to nearby ground troops in the Sherzad district of Nangarhar province.
-- Another coalition airstrike killed three insurgents after ground troops received small-arms fire in Nangarhar province's Khugyani district.
-- Afghan soldiers detained six suspected insurgents in Dand Patan.
TWO FORMER EXECUTIVES PLEAD GUILTY IN BRIBERY CONSPIRACY INVOLVING AT LEAST 30 COUNTRIES
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, April 17, 2012
Two Former Executives of California Valve Company Plead Guilty to Foreign Bribery Offenses
WASHINGTON – Stuart Carson, the former president of Rancho Santa Margarita, Calif.-based valve company Control Components Inc. (CCI), and Hong “Rose” Carson, the former CCI director of sales for China and Taiwan, have pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA), announced the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Central District of California.
The Carsons, who are married and reside in San Clemente, Calif., each pleaded guilty late yesterday before U.S. District Judge James V. Selna in Santa Ana, Calif., to separate one-count superseding informations charging them with making a corrupt payment to a foreign government official in violation of the FCPA. According to court documents, CCI designed and manufactured service control valves for use in the nuclear, oil and gas, and power generation industries worldwide. At sentencing, Stuart Carson, 73, faces up to 10 months in prison. Rose Carson, 48, faces a sentence of three years probation, which may include up to six months of home confinement. Sentencing is scheduled for Oct. 15, 2012.
On Apr. 8, 2009, the Carsons and four other former executives of CCI were charged in a 16-count indictment for their roles in the foreign bribery scheme. The four former CCI executives charged include Paul Cosgrove, CCI’s former director of worldwide sales; David Edmonds, CCI’s former vice president of worldwide customer service; Flavio Ricotti, the former CCI vice president of sales for Europe, Africa and the Middle East; and Han Yong Kim, the former president of CCI’s Korean office. On Apr. 28, 2011, Ricotti pleaded guilty to one count of conspiracy to violate the FCPA. The trial of Cosgrove and Edmonds is scheduled for Jun. 5, 2012. The charges against Kim are pending as well. An indictment merely contains allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In related cases, two defendants previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on behalf of CCI. On Jan. 8, 2009, Mario Covino, the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA. On Feb. 3, 2009, Richard Morlok, the former CCI finance director, also pleaded guilty to one count of conspiracy to violate the FCPA. Covino, Morlok and Ricotti are scheduled to be sentenced in November and December 2012.
On July 31, 2009, CCI pleaded guilty to a three-count criminal information charging the company with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA. CCI was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years. CCI admitted that from 2003 through 2007, it made corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.
The case is being prosecuted by Deputy Chief Charles G. La Bella and Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Douglas McCormick and Gregory Staples of the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI’s Washington Field Office, and its team of special agents dedicated to the investigation of foreign bribery cases.
Tuesday, April 17, 2012
Two Former Executives of California Valve Company Plead Guilty to Foreign Bribery Offenses
WASHINGTON – Stuart Carson, the former president of Rancho Santa Margarita, Calif.-based valve company Control Components Inc. (CCI), and Hong “Rose” Carson, the former CCI director of sales for China and Taiwan, have pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA), announced the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Central District of California.
The Carsons, who are married and reside in San Clemente, Calif., each pleaded guilty late yesterday before U.S. District Judge James V. Selna in Santa Ana, Calif., to separate one-count superseding informations charging them with making a corrupt payment to a foreign government official in violation of the FCPA. According to court documents, CCI designed and manufactured service control valves for use in the nuclear, oil and gas, and power generation industries worldwide. At sentencing, Stuart Carson, 73, faces up to 10 months in prison. Rose Carson, 48, faces a sentence of three years probation, which may include up to six months of home confinement. Sentencing is scheduled for Oct. 15, 2012.
On Apr. 8, 2009, the Carsons and four other former executives of CCI were charged in a 16-count indictment for their roles in the foreign bribery scheme. The four former CCI executives charged include Paul Cosgrove, CCI’s former director of worldwide sales; David Edmonds, CCI’s former vice president of worldwide customer service; Flavio Ricotti, the former CCI vice president of sales for Europe, Africa and the Middle East; and Han Yong Kim, the former president of CCI’s Korean office. On Apr. 28, 2011, Ricotti pleaded guilty to one count of conspiracy to violate the FCPA. The trial of Cosgrove and Edmonds is scheduled for Jun. 5, 2012. The charges against Kim are pending as well. An indictment merely contains allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In related cases, two defendants previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on behalf of CCI. On Jan. 8, 2009, Mario Covino, the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA. On Feb. 3, 2009, Richard Morlok, the former CCI finance director, also pleaded guilty to one count of conspiracy to violate the FCPA. Covino, Morlok and Ricotti are scheduled to be sentenced in November and December 2012.
On July 31, 2009, CCI pleaded guilty to a three-count criminal information charging the company with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA. CCI was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years. CCI admitted that from 2003 through 2007, it made corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.
The case is being prosecuted by Deputy Chief Charles G. La Bella and Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Douglas McCormick and Gregory Staples of the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI’s Washington Field Office, and its team of special agents dedicated to the investigation of foreign bribery cases.
HHS AND HEALTHCARE COMPANY SETTLE OVER PATIENT INFORMATION SAFEGUARDS
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
HHS settles case with Phoenix Cardiac Surgery for lack of HIPAA safeguards
Phoenix Cardiac Surgery, P.C., of Phoenix and Prescott, Arizona, has agreed to pay the U.S. Department of Health and Human Services (HHS) a $100,000 settlement and take corrective action to implement policies and procedures to safeguard the protected health information of its patients.
The settlement with the physician practice follows an extensive investigation by the HHS Office for Civil Rights (OCR) for potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy and Security Rules.
The incident giving rise to OCR’s investigation was a report that the physician practice was posting clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible. On further investigation, OCR found that Phoenix Cardiac Surgery had implemented few policies and procedures to comply with the HIPAA Privacy and Security Rules, and had limited safeguards in place to protect patients’ electronic protected health information (ePHI).
“This case is significant because it highlights a multi-year, continuing failure on the part of this provider to comply with the requirements of the Privacy and Security Rules,” said Leon Rodriguez, director of OCR. “We hope that health care providers pay careful attention to this resolution agreement and understand that the HIPAA Privacy and Security Rules have been in place for many years, and OCR expects full compliance no matter the size of a covered entity.”
OCR’s investigation also revealed the following issues:
- Phoenix Cardiac Surgery failed to implement adequate policies and procedures to appropriately safeguard patient information;
- Phoenix Cardiac Surgery failed to document that it trained any employees on its policies and procedures on the Privacy and Security Rules;
- Phoenix Cardiac Surgery failed to identify a security official and conduct a risk analysis; and
- Phoenix Cardiac Surgery failed to obtain business associate agreements with Internet-based email and calendar services where the provision of the service included storage of and access to its ePHI.
Under the HHS resolution agreement, Phoenix Cardiac Surgery has agreed to pay a $100,000 settlement amount and a corrective action plan that includes a review of recently developed policies and other actions taken to come into full compliance with the Privacy and Security Rules.
FIRST SECRETARY-GENERAL APPOINTED BY COMMUNITY OF DEMOCRACIES
FROM: U.S. STATE DEPARTMENT
Community of Democracies Appoints First Secretary-General
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
April 17, 2012
I was pleased to learn that the Governing Council of the Community of Democracies (CD) unanimously selected Sweden’s Ambassador-at-Large for Democracy, Maria Leissner, as the CD’s first Secretary-General-Designate. Her appointment marks a major step in the Community’s transformation from a forum for democracies to convene, into an operational hub for democracy assistance and promotion. As chair of the CD’s reform working group and a key leader of the intergovernmental coalition’s revitalization over the last two years, Ambassador Leissner has brought together a diverse array of partners to provide concrete support for democracies in transition. I send my deepest congratulations to Ambassador Leissner, and I look forward to working with her as we support emerging democracies and civil society around the world.
PRESIDENT OBAMA AND NASCAR CHAMPION
President Barack Obama looks at the NASCAR Sprint Cup Series Championship trophy as he approaches Tony Stewart's car during an event on the South Lawn of the White House, April 17, 2012. NASCAR Sprint Cup Series drivers Tony Stewart, center, Kyle Busch, and Ryan Newman, right, watch nearby. (Official White House Photo by Chuck Kennedy)
EPA FINALIZED STANDARDS TO REDUCE AIR POLLUTION ASSOCIATED WITH NATURAL GAS AND OIL
FROM: EPA
Statements on EPA's Updated, Achievable Air Pollution Standards for Oil and Natural Gas
In response to a court deadline, the U.S. Environmental Protection Agency (EPA) has finalized standards to reduce harmful air pollution associated with oil and natural gas production. The updated standards, required by the Clean Air Act, were informed by the important feedback from a range of stakeholders including the public, public health groups, states and industry. As a result, the final standards reduce implementation costs while also ensuring they are achievable and can be met by relying on proven, cost-effective technologies as well as processes already in use at approximately half of the fractured natural gas wells in the United States. These technologies will not only reduce 95 percent of the harmful emissions from these wells that contribute to smog and lead to health impacts, they will also enable companies to collect additional natural gas that can be sold. Here’s what people across the country are saying about EPA’s updated, achievable air pollution standards for oil and natural gas:
Albert A. Rizzo, M.D., Chair, Board of Directors of the American Lung Association:
“…The cleanup of air pollution from oil and natural gas wells is essential to protect public health and growing in importance as the industry expands. We applaud EPA’s response to this rapidly expanding source of air pollution…”
Howard Feldman, American Petroleum Institute (API) Director of Regulatory and Scientific Affairs:
“The industry has led efforts to reduce emissions by developing new technologies that were adopted in the rule. EPA has made some improvements in the rules that allow our companies to continue reducing emissions while producing the oil and natural gas our country needs. This is a large and complicated rulemaking for an industry so critical to the economy, and we need to thoroughly review the final rule to fully understand its impacts.”
Lynn Thorp, Clean Water Action National Campaigns Director:
“Our members in Pennsylvania, Texas, and Colorado have suffered because state regulators haven’t acted to control oil and gas operations, so these standards are a win-win-win. They protect people from air pollution, help curb climate change and save the industry money. People expect the federal government to use their authority to protect their health, their drinking water and the air they breathe and this is a good first step.”
Trip Van Noppen, Earthjustice President:
“Left to its own devices, the oil and gas industry has turned the clear skies over Wyoming as smoggy as the car-choked highways of Los Angeles. For decades, industry had a free pollution pass. Thanks to a court victory, that changes today. There is more work to be done to protect Americans living near oil and gas fields from cancer and other unacceptable health threats, but this rule from EPA is an important first step.”
John Rumpler, senior attorney for Environment America:
“From Colorado to Pennsylvania, the gas industry is making a killing from drilling, and at the very least they should cut dirty and dangerous air pollution that threatens our families’ health. EPA’s action today is a breath of fresh air for every man, woman, and child living in the shadow of the gas drilling boom.”
Michael Brune, Executive Director of the Sierra Club:
“EPA Administrator Lisa Jackson is taking an important first step in closing loopholes for the natural gas industry and addressing dangerous air quality levels in and near frack-fields across the country. The natural gas industry dumps massive amounts of air pollutants into our air every day, sickening families and children. An industry that touts its ability to efficiently drill thousands of wells thousands of feet into the earth is crying wolf when it claims it can’t build enough tanks to capture wellhead pollution. It’s time we clean up the natural gas industry’s dirty and reckless practices.”
Albert A. Rizzo, M.D., Chair, Board of Directors of the American Lung Association:
“…The cleanup of air pollution from oil and natural gas wells is essential to protect public health and growing in importance as the industry expands. We applaud EPA’s response to this rapidly expanding source of air pollution…”
Howard Feldman, American Petroleum Institute (API) Director of Regulatory and Scientific Affairs:
“The industry has led efforts to reduce emissions by developing new technologies that were adopted in the rule. EPA has made some improvements in the rules that allow our companies to continue reducing emissions while producing the oil and natural gas our country needs. This is a large and complicated rulemaking for an industry so critical to the economy, and we need to thoroughly review the final rule to fully understand its impacts.”
Lynn Thorp, Clean Water Action National Campaigns Director:
“Our members in Pennsylvania, Texas, and Colorado have suffered because state regulators haven’t acted to control oil and gas operations, so these standards are a win-win-win. They protect people from air pollution, help curb climate change and save the industry money. People expect the federal government to use their authority to protect their health, their drinking water and the air they breathe and this is a good first step.”
Trip Van Noppen, Earthjustice President:
“Left to its own devices, the oil and gas industry has turned the clear skies over Wyoming as smoggy as the car-choked highways of Los Angeles. For decades, industry had a free pollution pass. Thanks to a court victory, that changes today. There is more work to be done to protect Americans living near oil and gas fields from cancer and other unacceptable health threats, but this rule from EPA is an important first step.”
John Rumpler, senior attorney for Environment America:
“From Colorado to Pennsylvania, the gas industry is making a killing from drilling, and at the very least they should cut dirty and dangerous air pollution that threatens our families’ health. EPA’s action today is a breath of fresh air for every man, woman, and child living in the shadow of the gas drilling boom.”
Michael Brune, Executive Director of the Sierra Club:
“EPA Administrator Lisa Jackson is taking an important first step in closing loopholes for the natural gas industry and addressing dangerous air quality levels in and near frack-fields across the country. The natural gas industry dumps massive amounts of air pollutants into our air every day, sickening families and children. An industry that touts its ability to efficiently drill thousands of wells thousands of feet into the earth is crying wolf when it claims it can’t build enough tanks to capture wellhead pollution. It’s time we clean up the natural gas industry’s dirty and reckless practices.”
STATE DEPARTMENT SAYS DIPLOMACY SUPPORTS U.S SMALL BUSINESS ABROAD
FROM: U.S. STATE DEPARTMENT
U.S. Diplomatic Support for Small Business Abroad
Remarks Reta Jo Lewis
Special Representative for Global Intergovernmental Affairs Washington Forum 2012; The Liaison Capitol Hill Hotel
State International Development Organizations
Washington, DC
April 12, 2012
Good afternoon and thank you Manny for that very kind introduction.
I am delighted to have the opportunity to meet with SIDO as you devote two days to engaging in rich and substantive dialogue on ways to expand trade and investment opportunities for your states.
I was enthused when I learned that SIDO requested that I discuss how U.S. diplomacy supports American small businesses abroad. This topic is particularly timely in light of Secretary Clinton’s doctrine of “economic statecraft,” which places economics at the center of our foreign policy agenda.
Secretary Clinton firmly believes that America’s foreign policy can champion U.S. businesses abroad and drive recovery here at home, and also help provide a strong foundation and effective economic tools that can strengthen and sustain America’s global leadership.
Given the Department of State’s far-reaching work overseas, she asked the Department leadership to identify ways to use our platforms and relationships abroad to strengthen the connection between diplomacy and economics. In other words, she asked the Department of State to answer the question of what we can do for business.
In furtherance of this agenda, Secretary Clinton hosted the first-ever Global Business Conference at the Department of State in February. Over 200 private sector representatives from more than 120 countries met with senior U.S. Government officials to focus on regional issues and how we can move forward together to seize opportunities, grow the global economy, and create American jobs.
These issues have not always been a traditional focus for the State Department. So why, you might ask, is the Secretary of State now spending as much time thinking about market swings as missile silos?
Well, to put it very plainly, Americans need jobs. And every $1 billion of goods we export supports more than 5,000 jobs here at home – even more in industries like telecommunications and aerospace. That is why President Obama announced the National Export Initiative in his 2010 State of the Union address and set the ambitious goal of doubling America’s exports by the end of 2014. And, we are very proud that we now expect to hit that target ahead of schedule.
We also understand that America’s economic strength and our global leadership are a package deal. You’re not going to have one without the other. Our power in the 21st century depends not just on the size of our military but also on what we grow, how well we innovate, what we make, and how effectively we sell.
Finally, we fundamentally believe that increasing trade and growing prosperity will benefit not just our own people, but people everywhere. Our economies are interdependent as never before. America’s economic renewal depends to a large degree on the strength of the global economy, and the global economy depends on the strength of America.
Secretary Clinton has made “Jobs Diplomacy” a priority mission at the State Department, with the clear goal of being the most effective diplomatic champions for prosperity and growth.
To achieve these goals, Secretary Clinton has developed a plan which begins with good people and good partners.
So, the Department of State is improving training for diplomats in economics, finance, and markets, and working more closely with colleagues across government to leverage the best possible skills and resources. Secretary Clinton has directed all of our senior diplomats to conduct business outreach and advocacy when they travel overseas. In addition, the Secretary created a new, unified under secretariat for economic growth, energy, and the environment.
Effective Jobs Diplomacy also requires partners on the ground with deep knowledge and extensive networks – and that is why American chambers of commerce and other bilateral trade associations are at the heart of our effort.
So we train our people, we find our partners, but the real questions is: Can Jobs Diplomacy deliver results that make a difference to Americans throughout the country, to the bottom line of companies and to the daily lives of U.S. citizens?
We are pursuing three lines of action to do just that: first, promoting U.S. businesses; second, attracting investment back to the United States; and third, leveling the playing field for fair competition.
Let’s start with how we advocate for U.S. companies trying to win contracts and make sales. This is not about picking winners and losers. It’s about helping all American companies put the best foot forward overseas to get a fair shot in every market.
The State Department is the face of the United States in over 190 countries and at 274 posts around the world. We fight for the rights of the business community. Over the past 60 years, we have helped establish the rules and institutions to safeguard healthy economic competition and spur unprecedented global growth.
For decades, our diplomats, trade negotiators, agriculture experts, and commercial service officers have worked hard to advocate for U.S. businesses. We have over 1,000 State Department economic officers around the world who strive to help American companies, large and small, compete, connect, and win.
We support American businesses overseas by providing commercial information and identifying market opportunities for American firms, advocating on their behalf and encouraging corporate responsibility. We answer questions from the business community and provide information on important issues such as corruption and bribery in overseas markets, export controls on sensitive equipment and technologies, and business-related visas for employees, partners, and clients of U.S. firms. The State Department Business Visa Center in Washington, D.C. assists businesses located in the United States by providing information about the application process for business visitor visa travel to the United States.
Jobs Diplomacy is not just about the giants of business. We are just as committed to helping small and medium-sized businesses. After all, that is where most of the jobs are in the United States. For example, when Iceland began looking for help converting its vehicles to electric power, our embassy championed a dynamic startup from Loveland, Ohio that does this work as well as anyone in the world. And in the end, the Ohio company won a contract worth $500 million and sold 1,000 electric SUVs.
The second focus of Jobs Diplomacy is helping to attract foreign direct investment – we call it “Global Investment” – into American communities. In order to make attracting and retaining foreign investment in the United States a priority across our government, President Obama launched last summer SelectUSA, a federal initiative to attract and retain foreign investment. The Departments of State and Commerce are working hand-in-hand on this program and we are already seeing results. Together we are looking for foreign companies and investors in the top 25 overseas markets to come to your states to make investments.
Several of our embassies have hosted programs for U.S. governors, and have supported promotional agendas for many states, cities and regions from across the United States. For example, the U.S. Commercial Service in Spain has developed the ServiceSolutionsUSA initiative which promotes business links between Spanish investors and American service providers, including lawyers, accountants and consultants. ServiceSolutionsUSA introduces Spanish investors to U.S. service providers as well as to state economic development offices from all 50 states. Many American service providers have already successfully supported Spanish investors in the United States, and this service is now being replicated at other U.S. Embassies.
In furtherance of the Secretary’s vision, the Office of Global Intergovernmental Affairs has leveraged U.S. state and local officials in our economic strategy in China and India, among other nations.
My office supported the establishment of the U.S. China Governors Forum in 2011 which brought together American and Chinese governors to discuss trade and investment, energy, the environment, agriculture, and education issues. And not long afterwards, one of the largest heavy equipment manufacturers in China announced a $60 million investment in Peachtree City, Georgia, with plans to add an additional $25 million across the state and hire 300 engineers in the next five years.
The U.S. Embassy and five Consulates in China work with our office, in cooperation with the Foreign Commercial Service and Foreign Agricultural Service, to provide tailored programs and services to U.S. governors visiting China. At the same time, Ambassador Gary Locke has made promoting U.S. exports and facilitating bilateral investment a top priority. In addition, the U.S. Mission to China works hard to counter the mistaken impression in China that the United States discriminates against Chinese investment.
We also collaborated with Maryland Governor Martin O’Malley on his historic trade mission to India in 2011. In preparation for the mission, our office, the U.S. Mission to India, including the U.S. Foreign Commercial Service, worked closely with Governor O’Malley’s Office, the Maryland Secretary of State’s Office, and Signe Pringle, Program Director of the Maryland Department of Business and Economic Development, who is here with us today. The mission opened new doors between the State of Maryland and India to strengthen trade and investment.
Two Indian companies plan investments in Maryland and eight Maryland businesses signed deals with Indian partners, with a combined total of nearly $60 million in business deals for the state and several additional deals worth millions still on the horizon.
We continue to work with city and state leaders to help them replicate these successes.
The third focus of Jobs Diplomacy is leveling the playing field for all, so American companies can compete and succeed everywhere. The United States is committed to a global economic system that is open, free, transparent, and fair. And we’re working to institutionalize those norms in regional and global trade agreements and institutions. We’re pushing for reforms that allow more people in more places to participate in the formal economy – especially women.
We stand up for entire industries. For instance, our team in Australia helped beat back unwarranted legal actions against American pork producers, leading to a significant increase in exports last year.
And, we stand up for small companies, like the bedding producer in Washington State that faced a crisis when Canadian regulators hit its products with a higher tariff. After the State Department, working closely with the Canadian Embassy, intervened, the Canadian regulators realized they had made a mistake and reversed their decision.
Big or small, we’re standing up for an economic system that benefits everyone. The State Department is here to help. So when businesses confront unfair regulations, when they need help cutting through red tape, of if they just want advice on local customs, they can come to the State Department.
To make this even easier, in key markets across the world, our ambassadors are now holding monthly conference calls with the U.S. business community.
We’re standardizing commercial information on all of our embassy websites so U.S. companies can find the answers they need in one place. This will complement the newly launched BusinessUSA website, a virtual one-stop for the services and information companies need to help them grow, hire, and export.
In addition, the State Department has established the Direct Line program which provides a unique opportunity for American businesses, particularly small- and medium-sized enterprises, to engage directly via teleconference with U.S. ambassadors overseas. The program is open to American companies which are already in the country where the ambassador serves or which are interested in expanding their businesses into those countries.
So, these are all the ways in which Jobs Diplomacy is helping deliver results. And in the days and months ahead, we’re going to push even harder. We will not rest until the U.S. Government is the most effective champion of business and trade anywhere.
We look forward to working with you on your international needs.
VIETNAM WAR HERO WILL RECEIVE POSTHUMOUS MEDAL OF HONOR
Army Spc. 4 Leslie H. Sabo Jr., who served with Company B, 3rd Battalion, 506th Infantry, 101st Airborne Division. Sabo will receive the Medal of Honor posthumously in a May 16, 2012, White House ceremony for his valor in the Vietnam War. Photo courtesy of George Sabo
Vietnam War Hero to Receive Posthumous Medal of Honor
Army News Service
WASHINGTON, April 17, 2012 - Army Spc. 4 Leslie H. Sabo Jr., a rifleman with the 101st Airborne Division during the Vietnam War, will posthumously receive the Medal of Honor in a May 16 ceremony, White House officials announced yesterday.
Sabo is credited with saving the lives of several of his comrades in Company B, 3rd Battalion, 506th Infantry, when his platoon was ambushed near the Se San River in eastern Cambodia on May 10, 1970. Sabo shielded a comrade from an enemy grenade and silenced a machine-gun bunker before he was killed.
Sabo's widow, Rose Mary Sabo-Brown, and his brother, George Sabo, have been invited to the White House for the ceremony. President Barack Obama recently telephoned Sabo-Brown to inform her that her late husband would receive the nation's highest award for valor.
"It was a very emotional day -- a very, very emotional day," she said. I couldn't even sleep that night. And ... when I did fall asleep finally and I woke up the next morning, I went, 'Now wait a minute, did I dream this? Is it really real?' I couldn't be more proud of him.
In her home near New Castle, Pa., Sabo-Brown has set up a museum of sorts in tribute to her late husband and his comrades who were killed in Cambodia.
When his platoon was ambushed from all sides by a large enemy force, Sabo charged the enemy position, killing several enemy soldiers. He then assaulted an enemy flanking force, successfully drawing their fire away from friendly soldiers and ultimately forcing the enemy to retreat. While the platoon was securing a re-supply of ammunition, an enemy grenade landed nearby. Sabo picked it up, threw it, and shielded a wounded comrade with his own body -- absorbing the brunt of the blast and saving his comrade's life.
Although wounded by the grenade blast, Sabo continued to charge the enemy's bunker. After receiving several serious wounds from automatic weapons fire, he crawled toward the enemy emplacement and, when in position, threw a grenade into the bunker. The resulting explosion silenced the enemy fire, but also ended Sabo's life.
Sabo's unit nominated him for the Medal of Honor, but the paperwork was lost until Tony Mabb, a Vietnam veteran of the 101st Airborne Division and a writer for the Screaming Eagle Association magazine, came across a thick file on Sabo while on a research trip to the National Archives military repository in College Park, Md.
Mabb contacted his congresswoman, who recommended that the Defense Department reconsider a medal of valor for Sabo. Mabb also made contact with Sabo's widow.
"The Leslie I know would give his life to anybody," she said. "He would. He would give you the shirt off his back. That's the kind of man he was."
(From a White House news release, with additional reporting by Elizabeth M. Collins of Soldiers magazine.)
2013 DEFENSE DEPARTMENT BUDGET "ALIGNS SCIENCE WITH STRATEGY"
FROM: AMERICAN FORCES PRESS SERVICE
Budget Request Aligns Science With Strategy, Official Says
By Lisa Daniel
WASHINGTON, April 18, 2012 - The Defense Department's fiscal 2013 budget request maintains science and technology spending in accordance with President Barack Obama's strategic guidance for a smaller, leaner, more flexible and agile military, the Pentagon's head of research and engineering told a Senate subcommittee yesterday.
The department's fiscal 2013 request of $11.9 billion, down from $12.2 billion this year, maintains $2.1 billion for basic research; $2.8 billion to the Defense Advanced Research Projects Agency to develop strategic concepts; $1 billion for countering weapons of mass destruction; and maintains science and technology funding in each of the military departments at about $2 billion, Zachary J. Lemnios, assistant secretary of defense for research and engineering, told the Senate Armed Services Committee's emerging threats and capabilities subcommittee.
"I can assure this committee that we are all mindful of the budget pressures facing our nation," Lemnios said in a prepared statement. "We have made a collective commitment to ensure that the taxpayers' dollars provided to the department's [science and technology] enterprise are invested wisely with a laser-like focus on needed capabilities for our national security."
The budget request adds $700 million to enhance the services' ability to operate jointly across all domains, Lemnios said. The funding would initiate an Air Force hypersonic cruise missile capability demonstration, accelerate the development of advanced electronic warfare concepts, accelerate technology development for the long range anti-ship missile program, and launch technology development efforts in anti-jam precision-guided munitions, he said.
Adjustments were made to increase funding in the priority areas of cyber, electronic warfare, robotics and advanced manufacturing by realigning funding in lower-priority areas, Lemnios said. The request also would increase investments in a next-generation, high-efficiency turbine engine, the Adaptive Versatile Engine Technology, he said.
Lemnios and representatives from each of the services also spoke of the importance of maintaining a highly capable workforce in DOD and service laboratories. "Most critical to the success of the laboratories and their ability to support the department's mission is the workforce," he said.
Of the tens of thousands of lab employees – military, civilian, and contracted – 9 percent hold doctorate degrees and 26 percent hold a master's degree, Lemnios said. Special hiring authorities have allowed the department to maintain the high standard, he said, as well as build tomorrow's workforce with the SMART internship program and support for students pursuing science, technology, engineering and math degrees.
Marilyn Freeman, deputy assistant secretary of the Army for research and technology, said that by maintaining the Army's 22 labs and their 19,000-plus employees, the service can ensure it can address the specific challenges of soldiers.
"I hear often from the soldiers themselves that technology saved their lives and was critical to their remarkable accomplishments," Freeman said. Such feedback motivates Army scientists and engineers to research, develop and add maturity to everything from armor to combat casualty care to air and ground vehicles to food and uniforms, she added.
"They apply their accumulated knowledge and expertise, experimental data, and innovative products to solve problems, enhance performance, provide new desired capabilities, and forecast what capabilities are within the realm of the possible for our Army," she said.
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