Map From: U.S. State Department
FROM: U.S. STATE DEPARTMENT
Press Roundtable
Remarks
Philip H. Gordon
Assistant Secretary, Bureau of European and Eurasian Affairs
Bucharest, Romania
August 13, 2012
ASSISTANT SECRETARY GORDON: Let me just start by thanking you all for coming. It’s a good opportunity to share some views.
I want to say how pleased I am to be back in Bucharest. This is my first official visit as Assistant Secretary. I was actually just in Istanbul with Secretary Clinton and wanted to come here to see key leaders and share some messages from Washington and get a better understanding of the situation.
So I did have a chance to meet today with suspended President Basescu, acting President Antonescu and Prime Minister Ponta.
I came here, obviously, because we are following developments very closely. We care a lot about the partnership between the United States and Romania, and the people of Romania as indicated in our Joint Declaration on the Strategic Partnership for the 21st Century that we agreed last year, and it’s because of this care for Romania and its future and its democracy that we’re concerned about some of the recent developments regarding the conduct of the referendum and the process by which it is being reviewed, and I came here in part to share those concerns.
There have been, as everybody knows, credible allegations about widespread illegal voting in the referendum. There have been efforts to change voter lists that would affect the quorum threshold and apparently attempts to coerce the Constitutional Court regarding the validation of the referendum. All of these things, if confirmed, would raise questions about the legitimacy of whatever outcome were to emerge, and all of these steps would be counter to the values and principles that unite Europe and the United States, and it’s not something we would want to see in a NATO ally and a member of the European Union that is committed to democratic institutions.
I should add that these are not just concerns of the State Department or the United States, but I think they’ve been expressed by others, the European Commission, the Venice Commission, prominent NGOs, and other key NATO allies.
We, the United States, fully support the 11 points provided by the European Commission to help Romania on its democratic path. Ambassador Gitenstein has made our views known both publicly and privately, and I also came here to stress that he is absolutely speaking for Washington, for the Obama administration, when he makes those public and private comments.
I also want to make clear as I made clear to the leaders throughout the course of discussions today, we’re not taking sides and we’re not here to support one party or one leader over any other -- we’re here to support shared principles and democratic institutions and respect for democratic institutions.
Again, as the Ambassador has said, governments come and go in both Romania and in the United States, but what is important is the relationship between our countries and I would add what is important is respect for independent, democratic institutions and values.
So it was in that spirit of care about the relationship, the friendship, that I came here to express these concerns and views with the leadership of this country, to hear from them their perspectives, and to encourage absolute respect for democratic values and institutions and their independence in this process moving forward so that whatever the result might be, it emerges legitimately and allows us to continue to work together as partners.
With that, I’m open to your questions.
QUESTION: I’d like to know if you bring into discussion the strategic partnership agreement between Romania and the United States. If this partnership is in danger by events in Romania. This is my first question.
ASSISTANT SECRETARY GORDON: Well, no, I made clear, as I just expressed, the United States wants to see an enduring strategic partnership between our two countries. We agreed recently to formalize that partnership and we want to see that move forward.
But I also made clear that it’s hard to bring projects like that into fruition, or it would be hard if there were questions about the legitimacy of democratic processes here. We want a strategic partnership with a democratic NATO ally, and I made clear that when there are questions raised about the common practices and values on which that partnership is based, it’s more difficult to pursue it, so that’s why I hope and expect that leaders will respect these common values and principles so that we can move forward with the partnership.
QUESTION: A second question about the anti-missile shield from Deveselu, have you ever discussed a possibility to replace that elements from Romania if the situation will grow worse in Romania?
ASSISTANT SECRETARY GORDON: No, we haven’t discussed that. I didn’t discuss that today. It is our full intention to proceed with the plans as agreed. The leaders I met with today expressed the same view, and I don’t think anybody is questioning the importance of moving forward together with that project.
QUESTION: What do you expect concretely from the political leaders of Romania, and more exactly from Victor Ponta and Mr. Antonescu? Concretely, which steps are you expecting from them at this point?
ASSISTANT SECRETARY GORDON: I’m always careful to avoid specific prescriptions in other countries’ detailed constitutional processes. It’s not for me to say exactly how voter lists should be treated or what schedule the Constitutional Court should do its business on. What I asked of them is that they respect the rule of law in Romania and the independence of the institutions of Romania. That’s what we expect from them and all leaders in this country. As I said, we’re not taking sides. It’s not a message directed at any particular individual or individuals, it’s respected across the spectrum and we expect respect for the independent institutions; we expect credible allegations of fraud or interference to be investigated and pursued, and we expect them to support what will be perceived to be a legitimate democratic outcome, and I put it that way meaning it’s not for me to say precisely what that is in some cases or for others, but you often know it when you see it. And it’s their responsibility as leaders and elected leaders to pursue outcomes that would be widely judged by the people of Romania and by outside actors as legitimate and sometimes it helps to bring in a third party validator. We discussed the role that the Venice Commission might be able to play, because when things are partisan domestically and when they’re complicated, it’s sometimes useful to have an external validator put a stamp of approval and that could be useful in some circumstances here. But the bottom line is avoid any actions that Romania’s friends and the Romanian public would question as not fully legitimate.
QUESTION: Did you discuss with the President how he would deal with his opponents in case he returns?
ASSISTANT SECRETARY GORDON: Which President are you talking about?
QUESTION: Basescu.
ASSISTANT SECRETARY GORDON: I’ve met with several different presidents in the course of the day.
Yes. We envisaged a number of different scenarios, but I did discuss with him the scenario in which he might be returned if that’s what the rule of law and constitutional processes bring him back, and urged him to -- like I urged everybody -- respect the rule of law in the country and to the extent possible pragmatically work with the government. Nobody expects these political rivals to be best of friends and to be forming coalitions and happily doing business together, but we do expect them to work within the constitutional structures of the country and to work together in the interests of the people of the country and of our partnership.
There are a number of common projects, some of them have been mentioned already, that shouldn’t be partisan, and I would think leaders on all sides of the spectrum want to see the economy recover; want to see the NATO partnership with the United States and the missile shield go ahead; want to see energy security. So I reminded them that we in our country sometimes often have cohabitation where the leaders of the executive branch and the leaders of the legislative branch are not always the best of friends with the same agendas, but we work within our constitutional structures, and that’s what I encouraged him to do if he’s returned as president.
QUESTION: The ambassador said that governments come and go, and you were repeating this. Does this imply that presidents are not coming and going that easily? Do you have a vested interest in keeping as your main partner in this country, Basescu. We all know that the Brits say "you vote the devil you know." Probably you have a devil in Basescu and this is it.
ASSISTANT SECRETARY GORDON: Let me clarify. It’s a welcome question. Just to be clear, I could have easily said presidents come and go, administrations come and go. In a democratic process it’s the leadership -- we’re not trying to make a distinction between, as one does in Europe, between the presidency and the government. Leaderships in democracies come and go. And that of course applies to presidencies as well.
This president, like all presidents, will come and go. So don’t misunderstand that expression, and also, just to repeat, no, it’s not about wanting to see the government come and go and the president stay the same. It’s not up to us to decide who should be the president of Romania -- that’s up to the people of the country.
QUESTION: And another question. Do you read the recent political developments in this country in a broader map where the Russian Federation, the events going on in Syria, Turkey, Greece, are also playing their role? So do you see it place Romania on this broader Middle East map so that you could see in this country, given the recent developments, a weak link within the greater map?
ASSISTANT SECRETARY GORDON: Yes, we place Romania in a broader strategic context. Obviously we care about it because we care about the people in the country, but it’s a NATO ally, and NATO is an organization that plays a role all around the world in some of the cases you mentioned, and even further afield like Afghanistan where we appreciate the Romanian contribution.
So of course we care about the health of the democracy in a key NATO ally, not just for the sake of the people but for the sake of our partnership. It’s strategically located, there are a lot of energy issues going on in the region, environmental, trafficking, you mentioned some of the important neighbors -- Russia and Turkey, not too far from the Middle East, refugees --so of course we place it in a wider context and we want a healthy, strong, prosperous democratic partner to help us deal with the challenges we face all around the world.
QUESTION: Are you satisfied with the answers you received from the Romanian officials in your conversations today?
ASSISTANT SECRETARY GORDON: I think it’s fair to say that I heard the right things. I heard -- I shared with you what my message was about respect for democracy and institutions and legitimacy, and I think it’s fair to say that the leaders I spoke to expressed support for those same values and practices. Now obviously it’s what people do more than what they say, but all I can expect in an initial day’s meeting is that they acknowledge the importance of these issues and pledge to respect those principles -- but you’ll have to turn to them and they should tell you themselves where they stand.
QUESTION: Do you think Romania is capable to deal with the situation? Institutionally, does Romania have the institutions working for dealing democratically with this situation, do you think?
ASSISTANT SECRETARY GORDON: It certainly has the institutions, they just need to be used properly, and that’s what’s being tested now and it is being tested. Again, that’s why I’m here -- because we’re concerned about the trend and the potential outcome.
Institutions can be fragile. It obviously has the institutions and the constitution necessary to be a healthy democracy. But it can be challenged, it’s often challenged in tough times. This is not the first country to face a tricky political situation with questions about removal of a president or governments falling and pending elections and cohabitation. These are all -- these things stress the system, and there’s no question that it’s a challenge for Romania. We want to help Romania pass the test; it would not be in Romania’s interest to fail the test.
Certain leaders might emerge as the, at least nominal leadership, but if their legitimacy is challenged it will not be healthy for them or the country. Financial markets would be spooked, investors would find other places to go, allies would be less comfortable moving forward with common projects, so there are real consequences for actions that would challenge the legitimacy of the country, and I appealed to all of the leaders I saw today to keep that in mind for the sake of Romania’s national interest.
QUESTION: But what will happen if Romania doesn’t pass the test from U.S. point of view?
ASSISTANT SECRETARY GORDON: I think I just described some of the consequences that would emerge if its legitimacy – if these practices and institutions weren’t respected. It’s not a question of anything the United States or any other particular actor might do but no doubt there would be consequences.
QUESTION: You came here, so that means your concern grew after the referendum, because the concern of Washington was expressed at a meeting about the crisis. So how would you describe your concerns today? Actually they grew in intensity after the vote.
The second thing, you talked about the Venice Commission. How would you see it intervene? Did you go into details, how --
ASSISTANT SECRETARY GORDON: Not great details. That would be up to Romanians and the Venice Commission itself. I just noted that it can sometimes be helpful to have this sort of external validator.
Yeah, I think it’s fair to say that our concerns have grown. We expressed them initially in reaction to some ideas about changing the makeup of the court and about questioning the court’s decision that there should be a 50 percent plus one quorum necessary, so we had concerns all along and we expressed them. Sometimes they were taken into account which was a positive thing. But they grew with the questions about the Constitutional Court’s role in validating the referendum, and so when we heard allegations of interfering with the court, when we heard allegations about fraudulent votes, when we heard questions about recounts to change the quorum threshold, yes, we grew more concerned because any of those things could result in questioning the legitimacy of the outcome.
QUESTION: When you say recounts, you mean changing the --
ASSISTANT SECRETARY GORDON: The voter lists, that’s right. Certain electoral rolls were used for -- and then the question came up well maybe we should take a different look at electoral rolls, and that’s not the normal process to examine the electoral rolls after they’ve been used.
QUESTION: But this process of recounting the electoral list is ongoing. When you met Prime Minister Victor Ponta, this process was still ongoing. Did you ask him if he’s going to stop this process or it was not an issue?
ASSISTANT SECRETARY GORDON: As I said, I expressed our concern about a process that would put into question the electoral rolls that were used. It’s our understanding that the Constitutional Court asked for the original lists to be delivered, that’s what Mr. Barroso communicated in a letter which we support, and that’s the view that I expressed to Prime Minister Ponta and others here today. So that those initial voter rolls and lists can be examined as part of the validation process by the Constitutional Court. That’s what the court asked for and we said that that’s what should be delivered.
QUESTION: Do you have the impression that the acting president, and the prime minister, got your message in an appropriate way?
QUESTION: I will complete the question. Did they assume something to do in order to calm down Washington and the Western countries?
QUESTION: Because there was a kind of ambivalence during the last weeks between statements done by the acting president and especially by the prime minister abroad and inside the country?
ASSISTANT SECRETARY GORDON: You ask if they got my message. I can’t speak for them. I can say that I clearly delivered the message that I’ve been sharing with you now. I said earlier that they said the right things. They expressed an absolute commitment to rule of law and the independence of the institutions and a willingness to see that serious allegations of fraud or interference are addressed.
So yes, I can say that I heard the right things about these issues. I believe that my message was heard loud and clear. Now we’d like to see the results so that the outcome in Romania is the democratic legitimate one that will serve everybody.
QUESTION: But there was not anything concrete on this issue of the voters of the electoral rolls? To update them or not to update them. Because the government is clearly saying that they are updating them according to nine categories.
QUESTION: That’s a little bit unclear. I think he refers very clear that among the concerns is the recounting of the electoral lists --
QUESTION: The updating?
QUESTION: Updating, yeah, of the electoral lists.
ASSISTANT SECRETARY GORDON: That’s up to the court to say exactly what lists it wants to see and what it intends to do with them, and we’d like to see the court address that as quickly as possible and move forward. So it’s not for me to say exactly in what ways lists might be updated or not updated. My understanding is the court asked for the lists that were used. Those lists should be made available. No one should allow for any ambiguity about whether they want to see those lists turned over or not. I did make clear -- again, while the bottom line being it’s up to the court to decide what lists should be used -- that I think everybody needs to be careful about giving the impression that they’re looking for ways to make the numbers different from what they actually were. It is not the normal process to revisit electoral lists after the result and after votes have been counted. Maybe in exceptional circumstances there can be reasons to look at certain factors, but that will be judged, and so that’s what I say from the outside and that’s why I say it might be useful to have the Venice Commission or someone else look at this. If the result were one in which certain lists were used and then they were updated, changed, revised in such a way that changed the outcome, I believe that people would have real questions about that outcome.
QUESTION: In that case, the answer of the acting president, the interim president, the answer of – prime minister should be like this: Okay, we will stop revisiting lists or updating lists and so on. Did they say that?
ASSISTANT SECRETARY GORDON: I communicated the view that I just expressed to them and you can ask them where they stand on the issue.
QUESTION: What do you think about the double standard, the double language of the Romanian Prime Minister outside and inside.
ASSISTANT SECRETARY GORDON: Well, I’ll leave you to characterize his language. I described it.
QUESTION: Mr. Gordon knows only one standard: what he said today, the prime minister today. You didn’t witness him say the other way around. Probably, [inaudible] but only theoretically.
ASSISTANT SECRETARY GORDON: I know what he told me today and we’ll see how this process develops moving forward.
QUESTION: There are some benefits being older, being older than you, with an important exception here. I was witnessing two equally important visits done by high officials of the State Department in the last [20] years. I’ve been here in this house in May ’90 when former State Secretary Eagleburger was here in order to convince Iliescu and his team to let the opposition parties taking part in the elections.
Then I’ve been here in April 2007 when they first dismissed Basescu and when the [Assistant] Secretary of State Daniel Fried came in in order to warn the opposition parties, especially the Liberals, not to withdraw, not to take advantage of this unsure period and to withdraw the Romanian military from Iraq.
Now you are here. Is your visit signaling the same level of concern as the two precedents?
ASSISTANT SECRETARY GORDON: It’s hard to compare levels of concern with very different circumstances so I’m not going to get into that comparison. I expressed at the beginning that I am concerned, we are concerned. I don’t -- as much as I’d love to visit Romania at any time, a mid-August trip during a constitutional challenge suggests some level of concern about developments rather than just a nice opportunity to have a visit with my friend the ambassador, or some of you.
So yes, I’m not hiding that it reflects a certain degree of concern about developments, but I also want to be clear, as I said, that I’m confident that the message was received. The leaders I saw said the right things, and I’m very hopeful that they’ll also do the right things because I think ultimately they care about the country, and they must agree that a result whose legitimacy is in question will not be good for them or for the country. So I do think it was a very worthwhile visit and I’m glad I had the chance to come, and we’ll look forward to working with what I hope will be a very positive result.
QUESTION: So you didn’t come just because you have been already in the corner in Turkey? That was not an around the corner visit.
ASSISTANT SECRETARY GORDON: No. I came for the reasons expressed. I would have come anyway. I have been following this closely and discussing with the ambassador the right time to come, because it was important to reinforce the message he’s been giving and convey a message from Secretary Clinton. I’m glad I had the opportunity to do so.
QUESTION: Just to be clear. So you would ask the government to stop updating the lists you think or not?
ASSISTANT SECRETARY GORDON: That’s not for --
QUESTION: I‘m sorry, because you said that it’s not up to you to exactly say what the court should get. But on the other hand you say that changing the list after the votes are -- Just to clarify what you -- Do you see the government is entitled to do this update or not?
ASSISTANT SECRETARY GORDON: I think that question has to be answered by the Constitutional Court. They need to say what lists they want to see and decide what to do with it. They need to be able to do that absolutely freely without any pressure from the outside. Those are the principles. It’s not for me to second guess. If they make decisions based on Romanian law and constitution, it’s not for me to second-guess that. I believe it would be reinforced by outside validators like the Venice Commission. So those are the principles that guide the way we’re thinking about this.
But I would repeat what I said, that if the result of this process were one in which the court’s opinions seem to have evolved, possibly under pressure, and that the original lists that were used were revisited and the numbers were changed and that changed the outcome of the vote, I think there would be serious questions from the outside about its legitimacy. That’s not the same as me dictating what it should be. I just note that as an outside observer. I think there would be questions if that’s -- That’s not the typical way of having a referendum, starting with a list, having a vote, having one outcome, looking at the list again and changing it and having a different outcome -- that would not be an ideal way forward.
QUESTION: But the lists are revisited at this moment as a fact.
QUESTION: The process is ongoing.
ASSISTANT SECRETARY GORDON: I think I’ve been clear.
QUESTION: Recently the Poles said that they would prefer to have their own segment, fragmented segment of the missile shield. That was two weeks ago. Do you think that this has something to do with Romanian, I don’t know, unbalanced perspective?
ASSISTANT SECRETARY GORDON: No. I don’t think so. I don’t think so -- Poland has its own interests in air and missile defense, but I would say about Poland what I said about Romania. We are absolutely clear about the President's intention to deploy all four phases of the Phased Adaptive Approach to European missile defense --
QUESTION: Integrated into NATO?
ASSISTANT SECRETARY GORDON: -- and integrated into NATO, and we’re going to move forward with that.
Thanks everybody.
A PUBLICATION OF RANDOM U.S.GOVERNMENT PRESS RELEASES AND ARTICLES
Thursday, August 16, 2012
AFHANISTAN NEWS: FROM ISAF AUGUST 16, 2012
FROM: U.S. DEPARTMENT OF DEFENSE
Combined Force Kills Taliban Leader, Detains Insurgents
From an International Security Assistance Force Joint Command News ReleaseKABUL, Afghanistan, Aug. 16, 2012 - In the Muqer district of Ghazni province today, a combined force searched for, engaged and killed Taliban leader Jihadmal, military officials reported.
Jihadmal had planned, coordinated and led multiple attacks in the region against Afghan and coalition forces, officials said.
The combined force also detained two suspected insurgents during the operation, officials said.
In other news today:
-- A combined force arrested two suspects during a search for a Taliban weapons distributer in the Washer district of Helmand province.
-- Afghan and coalition officials confirmed Taliban leader Ahmad Shah was killed Aug. 14 by a precision airstrike in the Panjwai district of Kandahar province. Shah provided heavy weapons and bomb-making materials to insurgents operating in the region. He also coordinated and directed insurgent attacks, frequently using improvised explosive devices to attack security forces.
In operations yesterday:
-- A combined force airstrike killed multiple insurgents in the Nizam-e Shahid district of Herat province. The deceased insurgents belonged to an insurgent cell controlled by Abdulla Akbari, and were planning a large-scale attack against Afghan government officials and Afghan security forces in Herat. Akbari is responsible for directing IED attacks throughout the province and rocket attacks against Herat Airfield.
-- A combined force airstrike killed multiple insurgents, including Mullah Anwar, a senior Islamic Movement of Uzbekistan leader, while the security force also detained two suspects and seized weapons and explosives in the Ishkamish district of Takhar province. Anwar was the senior IMU military leader in the Burkah district of Baghlan province, and was involved in the Aug. 13 assassination of the Ishkamish district mayor.
EXPORT-IMPORT BANK AND AIRCRAFT EXPORTS TO ETHIOPIA
MAP CREDIT: U.S. State Department
FROM: U.S. EXPORT-IMPORT BANK
First Ex-Im Bank-Supported 787 Aircraft Delivered to Ethiopian Airlines
Washington, D.C. – The delivery of the first Export-Import Bank of the United States-supported Boeing 787 Dreamliner to Ethiopian Airlines was celebrated at a ribbon-cutting ceremony in the main terminal of Washington Dulles International Airport here today.
Earlier in May, the Bank approved a loan guarantee of more than $1 billion to Ethiopian Airlines for the export of a new fleet of Boeing 787 Dreamliners. The transaction, which was co-financed by Nippon Export and Investment Insurance (NEXI), also supported the export of G.E. spare engines.
"This aircraft is an example of the kind of American innovation that sets us apart and will drive our export competitiveness in the manufacturing sector," said Patricia M. Loui, director of Ex-Im Bank. "These themes are central to the President's National Export Initiative."
The Boeing 787 aircraft is the first of its kind to be delivered to any airline outside of Japan, and it is the first one to be financed by Ex-Im Bank.
"At Ex-Im Bank," continued Loui, "we look for opportunities that will meet the objectives of President Obama’s Presidential Policy Directive on Africa, which includes stimulating economic growth, trade, and investment in Africa. Ex-Im Bank financing support for Ethiopian Airlines’ Boeing 787 aircraft is helping to achieve these important objectives."
Ex-Im Bank has worked with Ethiopian Airlines since 2002 to support its ongoing fleet renewal and expansion program.
"Ex-Im Bank's reliable and consistent support for Ethiopian Airlines' acquisition of state-of-the-art Boeing aircraft, including our first Boeing 787 Dreamliner, has been an important factor in the successful implementation of our growth strategy. Ethiopian Airlines is proud of being a good client of Ex-Im Bank, and we intend to maintain such a win-win partnership between our two organizations forever," said Kassim Geresu, chief financial officer of Ethiopian Airlines.
Ex-Im Bank authorized a record $1.4 billion to support U.S. export sales to buyers in Sub-Saharan Africa in FY 2011, and the Bank has already topped last year’s figures with $1.5 billion in the first three quarters of FY 2012.
FROM: U.S. EXPORT-IMPORT BANK
First Ex-Im Bank-Supported 787 Aircraft Delivered to Ethiopian Airlines
Washington, D.C. – The delivery of the first Export-Import Bank of the United States-supported Boeing 787 Dreamliner to Ethiopian Airlines was celebrated at a ribbon-cutting ceremony in the main terminal of Washington Dulles International Airport here today.
Earlier in May, the Bank approved a loan guarantee of more than $1 billion to Ethiopian Airlines for the export of a new fleet of Boeing 787 Dreamliners. The transaction, which was co-financed by Nippon Export and Investment Insurance (NEXI), also supported the export of G.E. spare engines.
"This aircraft is an example of the kind of American innovation that sets us apart and will drive our export competitiveness in the manufacturing sector," said Patricia M. Loui, director of Ex-Im Bank. "These themes are central to the President's National Export Initiative."
The Boeing 787 aircraft is the first of its kind to be delivered to any airline outside of Japan, and it is the first one to be financed by Ex-Im Bank.
"At Ex-Im Bank," continued Loui, "we look for opportunities that will meet the objectives of President Obama’s Presidential Policy Directive on Africa, which includes stimulating economic growth, trade, and investment in Africa. Ex-Im Bank financing support for Ethiopian Airlines’ Boeing 787 aircraft is helping to achieve these important objectives."
Ex-Im Bank has worked with Ethiopian Airlines since 2002 to support its ongoing fleet renewal and expansion program.
"Ex-Im Bank's reliable and consistent support for Ethiopian Airlines' acquisition of state-of-the-art Boeing aircraft, including our first Boeing 787 Dreamliner, has been an important factor in the successful implementation of our growth strategy. Ethiopian Airlines is proud of being a good client of Ex-Im Bank, and we intend to maintain such a win-win partnership between our two organizations forever," said Kassim Geresu, chief financial officer of Ethiopian Airlines.
Ex-Im Bank authorized a record $1.4 billion to support U.S. export sales to buyers in Sub-Saharan Africa in FY 2011, and the Bank has already topped last year’s figures with $1.5 billion in the first three quarters of FY 2012.
SEC CHARGES ORACLE CORPORATION WITH VIOLATING FOREIGN CORRUPT PRACTICES ACT IN INDIA
FROM: U.S. SECURITES AND EXCHANGE COMMISSION
Washington, D.C., Aug. 16, 2012 — The Securities and Exchange Commission today charged Oracle Corporation with violating the Foreign Corrupt Practices Act (FCPA) by failing to prevent a subsidiary from secretly setting aside money off the company's books that was eventually used to make unauthorized payments to phony vendors in India.
The SEC alleges that certain employees of the India subsidiary of the Redwood Shores, Calif.-based enterprise systems firm structured transactions with India's government on more than a dozen occasions in a way that enabled Oracle India's distributors to hold approximately $2.2 million of the proceeds in unauthorized side funds. Those Oracle India employees then directed the distributors to make payments out of these side funds to purported local vendors, several of which were merely storefronts that did not provide any services to Oracle. Oracle's subsidiary documented certain payments with fake invoices.
Oracle agreed to pay a $2 million penalty to settle the SEC's charges.
"Through its subsidiary's use of secret cash cushions, Oracle exposed itself to the risk that these hidden funds would be put to illegal use," said Marc J. Fagel, Director of the SEC's San Francisco Regional Office. "It is important for U.S. companies to proactively establish policies and procedures to minimize the potential for payments to foreign officials or other unauthorized uses of company funds."
According to the SEC's complaint filed in U.S. District Court for the Northern District of California, the misconduct at Oracle's India subsidiary - Oracle India Private Limited - occurred from 2005 to 2007. Oracle India sold software licenses and services to India's government through local distributors, and then had the distributors "park" excess funds from the sales outside Oracle India's books and records.
For example, according to the SEC's complaint, Oracle India secured a $3.9 million deal with India's Ministry of Information Technology and Communications in May 2006. As instructed by Oracle India's then-sales director, only $2.1 million was sent to Oracle to record as revenue on the transaction, and the distributor kept $151,000 for services rendered. Certain other Oracle India employees further instructed the distributor to park the remaining $1.7 million for "marketing development purposes." Two months later, one of those same Oracle India employees created and provided to the distributor eight invoices for payments to purported third-party vendors ranging from $110,000 to $396,000. In fact, none of these storefront-only third parties provided any services or were included on Oracle's approved vendor list. The third-party payments created the risk that the funds could be used for illicit purposes such as bribery or embezzlement.
The SEC's complaint alleges that Oracle violated the FCPA's books and records provisions and internal controls provisions by failing to accurately record the side funds that Oracle India maintained with its distributors. Oracle failed to devise and maintain a system of effective internal controls that would have prevented the improper use of company funds.
Without admitting or denying the SEC's allegations, Oracle consented to the entry of a final judgment ordering the company to pay the $2 million penalty and permanently enjoining it from future violations of these provisions. The settlement takes into account Oracle's voluntary disclosure of the conduct in India and its cooperation with the SEC's investigation, as well as remedial measures taken by the company, including firing the employees involved in the misconduct and making significant enhancements to its FCPA compliance program.
The SEC's investigation was conducted by staff attorney Elena Ro and Assistant Regional Director Jina Choi in the San Francisco Regional Office. The SEC acknowledges the assistance of the U.S. Department of Justice, Federal Bureau of Investigation, and Internal Revenue Service.
Washington, D.C., Aug. 16, 2012 — The Securities and Exchange Commission today charged Oracle Corporation with violating the Foreign Corrupt Practices Act (FCPA) by failing to prevent a subsidiary from secretly setting aside money off the company's books that was eventually used to make unauthorized payments to phony vendors in India.
The SEC alleges that certain employees of the India subsidiary of the Redwood Shores, Calif.-based enterprise systems firm structured transactions with India's government on more than a dozen occasions in a way that enabled Oracle India's distributors to hold approximately $2.2 million of the proceeds in unauthorized side funds. Those Oracle India employees then directed the distributors to make payments out of these side funds to purported local vendors, several of which were merely storefronts that did not provide any services to Oracle. Oracle's subsidiary documented certain payments with fake invoices.
Oracle agreed to pay a $2 million penalty to settle the SEC's charges.
"Through its subsidiary's use of secret cash cushions, Oracle exposed itself to the risk that these hidden funds would be put to illegal use," said Marc J. Fagel, Director of the SEC's San Francisco Regional Office. "It is important for U.S. companies to proactively establish policies and procedures to minimize the potential for payments to foreign officials or other unauthorized uses of company funds."
According to the SEC's complaint filed in U.S. District Court for the Northern District of California, the misconduct at Oracle's India subsidiary - Oracle India Private Limited - occurred from 2005 to 2007. Oracle India sold software licenses and services to India's government through local distributors, and then had the distributors "park" excess funds from the sales outside Oracle India's books and records.
For example, according to the SEC's complaint, Oracle India secured a $3.9 million deal with India's Ministry of Information Technology and Communications in May 2006. As instructed by Oracle India's then-sales director, only $2.1 million was sent to Oracle to record as revenue on the transaction, and the distributor kept $151,000 for services rendered. Certain other Oracle India employees further instructed the distributor to park the remaining $1.7 million for "marketing development purposes." Two months later, one of those same Oracle India employees created and provided to the distributor eight invoices for payments to purported third-party vendors ranging from $110,000 to $396,000. In fact, none of these storefront-only third parties provided any services or were included on Oracle's approved vendor list. The third-party payments created the risk that the funds could be used for illicit purposes such as bribery or embezzlement.
The SEC's complaint alleges that Oracle violated the FCPA's books and records provisions and internal controls provisions by failing to accurately record the side funds that Oracle India maintained with its distributors. Oracle failed to devise and maintain a system of effective internal controls that would have prevented the improper use of company funds.
Without admitting or denying the SEC's allegations, Oracle consented to the entry of a final judgment ordering the company to pay the $2 million penalty and permanently enjoining it from future violations of these provisions. The settlement takes into account Oracle's voluntary disclosure of the conduct in India and its cooperation with the SEC's investigation, as well as remedial measures taken by the company, including firing the employees involved in the misconduct and making significant enhancements to its FCPA compliance program.
The SEC's investigation was conducted by staff attorney Elena Ro and Assistant Regional Director Jina Choi in the San Francisco Regional Office. The SEC acknowledges the assistance of the U.S. Department of Justice, Federal Bureau of Investigation, and Internal Revenue Service.
BRIEFING ON AFGHANISTAN ECONOMIC SELF-SUFFICIENCY
FROM: U.S. STATE DEPARTMENT
On-the-Record Briefing with International MediaPress Availability
Robert O. Blake, Jr.
Assistant Secretary, Bureau of South and Central Asian Affairs
Almaty, Kazakhstan
August 15, 2012
A/S Blake: I am in Kazakhstan for a few hours. Right after this I will be having a meeting with business community to talk a little bit about all our efforts to promote regional economic integration and help Afghanistan and so forth. I thought it would be useful to talk to each of you as well about Kazakhstan and some of our regional integration efforts. I will just make a few opening comments and I will be glad to take your questions.
We are on the record unless we say otherwise. Just to start with, I am really delighted to be back here in Almaty and particularly delighted to be here in the wake of Kazakhstan’s great Olympics success, which I gather got quite a lot of attention here and got a lot of attention in the U.S. A relatively small country like Kazakhstan getting six gold medals and ten medals overall was quite a bit, so congratulations.
Reuters: Seven medals.
Blake: Was it?
Reuters: Seven gold medals and twelfth ranking among the countries.
Blake: Right. In terms of our relations with Kazakhstan, I think they are deepest and broadest of all countries in Central Asia. That is reflected in our decision earlier this year to establish a strategic partnership dialogue with Kazakhstan because we are increasingly working not just bilaterally with Kazakhstan but increasingly multilaterally. Not only in terms of Kazakhstan’s efforts in regional organizations, such the Organization of Islamic Cooperation, but also increasingly Kazakhstan is looking to expand its own assistance programs, to play a larger role in the regional integration process and work a lot on some of the very important regional issues, such as non-proliferation and so on. All of these are very consistent with what we are trying to accomplish and again one of the reasons why we have a very good partnership with Kazakhstan.
Kazakhstan, and really Almaty in particular, is also important, I think, because it is a regional hub, not just for business, but also for a lot of the international organizations that we work with to try to promote this regional integration idea. Again it is a good opportunity for me to have a few hours to come here. Secretary Clinton has talked a lot about our goals helping Afghanistan to become a secure state and a prosperous country and a secure, stable, and prosperous country within a secure, stable, and prosperous region. There have been a tremendous number of efforts over the last few years to help that goal. You know about a number of international conferences that took place, including the NATO Summit in Lisbon in 2010, continuing with conferences in Istanbul and Bonn and recently the NATO summit in Chicago and the Tokyo Conference in early July. I think all of those, particularly the last two conferences, have sent a very strong message of the strong long-term commitment of the international community to Afghanistan’s future, and I want to say that we appreciate very much Kazakhstan’s role in all of this.
Kazakhstan sent a representative to the NATO Summit and was also strongly represented in all these conferences. It is also taking a leadership role and is helping to develop all these transport corridors. For example, a rail line going down through Turkmenistan to Afghanistan and also some other important efforts they are helping with, for example, training young Afghan students here in Kazakhstan. I think it is quite an important time and it is important that we have Kazakhstan working with us. In terms of our wider efforts, you have all heard Secretary Clinton talk about this New Silk Road vision. She has talked about how we want to help these three important transitions that are going to occur in Afghanistan. The security transition, you are all aware of, whereby all of the NATO troops will leave Afghanistan by the end of 2014. There will be a residual force that will remain and that remains to be negotiated, the exact composition of that.
In the meantime, we are all working to build up the Afghan national security forces so that they can take complete control over their own security. There is equally important political transition that will occur with the elections that will take place in 2014. And then last but not least, the economic transition as well, to help Afghanistan become more self-sufficient economically, to build up a private sector, and a very important part of that is the regional integration piece.
There are really two different parts to this. First is what we call the software, which is trade liberalization, reduction of non-tariff trade barriers, reducing delays on border clearances, and those kinds of obstacles to trade. The second is the equally important task of all the infrastructure – the web of roads, pipelines, electricity transmission lines and so forth that are really the nuts and bolts of regional economic connectivity. I think quite a lot of progress has been made on projects like the Turkmenistan-Afghanistan-Pakistan-India gas pipeline and a lot of these railroads that I talked about.
Again, we appreciate very much the role Kazakhstan played in that. In March of this year, many of you may have been at this conference in Tajikistan, the Regional Economic Cooperation Conference for Afghanistan, RECCA, which for the first time resulted in quite a good detailed blueprint that all of the region endorsed. It was developed by Afghanistan and endorsed by the whole region and included series of projects and also all these software projects that I talked about. So, there is a good clear regional consensus on the way forward. Progress has been made and again we do appreciate the support Kazakhstan has provided to that. With those opening remarks, let me turn it over to you. We have about 20 minutes and then I have to run off to another event. Thank you for your time and thanks for coming.
AP: On the software issue, I am interested about Uzbekistan in particular because they seem to be the country that creates a lot of problems, seems to me, in terms of the political situation and actually lately the investment situation is looking as grim as ever, latest problem over there, with one of the mobile service providers. Given how little progress we see in Uzbekistan, how realistic it is to talk about the software being in place for Uzbekistan’s role in the region.
Blake: You are right there are challenges now in the investment climate in Uzbekistan. I am going to Uzbekistan later today and we are bringing with us a fairly large delegation of American companies. So, there is still a lot of private sector interest. But I think there is still quite a lot Uzbekistan needs to do to improve its investment climate, such as the currency convertibility issue, and a lot of bureaucratic procedures that still make it difficult to do business in Uzbekistan. As to your wider question, I think, first of all, it is important to note that Uzbekistan has been quite an important leader in developing many of the kinds of things that I talked about. For example, Uzbekistan built a rail line south to Mazar-e-Sharif in cooperation with the Asian Development Bank.
That is now the main rail line that goes through Central Asia, and a lot of the equipment and supplies for our troops in Afghanistan go through that rail line. Secondly, Uzbekistan has provided a great deal of electricity to Afghanistan that helped light Kabul and many other parts of Afghanistan. That’s been a tremendous help. I think they are cooperating in a lot of these efforts that the ADB has on the way, for example the CAREC effort, where there is I think quite a lot of important work to get at these issues, like how do you reduce the border clearance and delays, how do you address corruption, how do you begin to harmonize customs and other types of regulations. I think Uzbekistan is cooperating. They have an interest in that. They are the most centrally located country. So, this is a work in progress. This is something very much on our agenda. This is something that we want to work on with our friends in Uzbekistan to try to make progress on.
Bloomberg: As I am from Bloomberg, a gas pipeline is what we are more interested more in. You mentioned TAPI. Taking into account that China has built a big pipeline. And Russia has a project for another pipeline from Turkmenistan. Do you think the project will be feasible and when it can be realized?
Blake: Do you mean feasible in terms of gas supplies?
Bloomberg: Yes.
Blake: I think there are sufficient gas supplies. We have always supported the development of multiple pipelines out of Turkmenistan and other countries as well to support their energy independence. But we see that the TAPI gas pipeline is particularly important because it’s going to join two of the most important end-points in this regional connectivity that we talk about, Turkmenistan and India. India, of course, has gigantic energy needs because of its fast-growing economy. They need lots of gas. I think that is what really helped drive this project. There is now a real market in India and they can afford to pay for the gas. Turkmenistan has sufficient gas to fuel this pipeline.
The pipeline would also provide significant transit revenues for both Afghanistan and Pakistan. That is also quite important to this vision that I talked earlier about for Afghanistan. So, in terms of the pipeline I think there has been good progress on what they call gas sale-purchase agreements between these countries. The next milestone is that there will be a road show that will take place sometime in September, at which they will begin to have concrete discussions about who is going to form and lead this consortium to actually build this pipeline. This is a crucial series of discussions that will take place.
Bloomberg: Are American companies going to be engaged?
Blake: Certainly. The road show will be going to the United States but also other countries as well. Many American companies are very interested in participating.
Bloomberg: Do you mean investors or contractors?
Blake: It depends on what’s on offer. There are a lot of risks to participating in such a pipeline. Part of their consideration will be what kind of incentives Turkmenistan will be prepared to offer international companies to get involved in that project. We will see when the road show takes place.
Reuters: Tajikistan - How do you assess the security situation given the recent events in Gorno-Badakhshan? What has the Tajikistan government asked for in terms of security assurances ahead of the drawdown role that the U.S. will play in Tajikistan?
Blake: First of all, I think the situation in Khorogh has stabilized somewhat. I think the curfew and so forth still remains there. We have been very active in helping to evacuate some of the American citizens that were in that part of the country. We continue to follow the situation very closely. This is something of significant concern to us. This is an area that has not always been under the control of the central government in Tajikistan. This is an area where a lot of drug smuggling takes place. So, it shows importance of some of the work that we and others have underway, to help the government provide border security, to be able to monitor what comes across that border, particularly in that region. It also reinforces the need for the government to continue to take its own measures to stop the drug trade, to stop a lot of these narco-criminal networks that are operating in that part of the country. So, we support them in their efforts to do so. We have various efforts underway to help the Tajik government. One of the important things that they must do is to address some of the corrupt activities of their own border guards and others who are helping to facilitate some of this trade. I think it is a two-way street, where the international community can help with border security and other things, and the Tajik government itself must take steps to address some of the corrupt activities.
As to the future, I think Tajikistan has been a very strong supporter of what we are trying to accomplish in Afghanistan. They hosted this very important RECCA conference. They have always been open to any way they can help Afghanistan. They, of course, are themselves very poor. But they strongly support these regional integration efforts that we are trying to promote. So, we see Tajikistan as an important partner and we want to try to work with them as much as possible to address some of the challenges that they face, particularly the narcotics trafficking and the border security issues. They have legitimate concerns about attempts from groups that are based either in Afghanistan or Pakistan trying to cross their borders, either to attack their own government or move up to Kyrgyzstan or potentially even Kazakhstan. It is very important for them to work not only with the international community, but also with Kyrgyzstan and other countries in the region to address these problems.
AP: Going back to Uzbekistan…Would you have a chance to talk to raise the issue of accreditation for foreign journalists, which has been an issue for number of years. There is that issue.
Blake: Accreditation to visit or to be based there?
AP: Actually, to visit. I have been here for four years and I have never been granted any kind of permission, even to attend a conference or something like that. And I tried.
Blake: In general, we do talk a lot about freedom of the press and freedom of the media. We have problems with some of the American human rights organizations, like Human Rights Watch and others. But I was not aware that there was that obstacle. I will be glad to talk about that.
AP: The only international agency that is allowed is AFP.
Blake: I know that CNN was recently granted access. They went and generated quite a lot of reports.
AP: They did, although it’s a long story... It is quite conditional given the content of their reports. Also in Uzbekistan, there have been some reports from Russian media recently suggesting the possibility that during the drawdown during 2014 that military equipment might be left along. What assurances can be made making certain that the wrong things do not end in the wrong hands, by which I mean weaponry.
Blake: First of all, the process of allocating Excess Defense Articles is only just beginning. We are beginning the consultations on that. It won’t be just for Uzbekistan but for all countries partnering on NDN. There will be quite detailed conversations with our military people based in embassies in each of these posts, with host nation counterparts on this thing. With respect to Uzbekistan, I do not think there will be any lethal weapons of any kind that will be offered. I think most of the kind of things that will be on offer will be military vehicles, Humvees, those kind of things. It is in our interests to provide those kinds of equipment. Uzbekistan has been a strong supporter of the NDN. That has in turn raised their profile with international terrorist organizations, who may want to target Uzbekistan in retribution. So, it is very much in our interest to help Uzbekistan defend itself against such attacks.
We are certainly prepared to think about how we can do that. I myself have been engaged over the last year in the U.S. Congress to get a waiver so that we can provide non-lethal military assistance to Uzbekistan, even though they have not met a lot of the human rights conditions that would allow for more regular military assistance. That waiver has been approved. We are providing non-lethal military assistance now and will continue to do so, and the EDA process will be one way that we could help.
AP: There have been concerns expressed that perhaps in an informal fashion that somehow things might end in the wrong hands. I am wondering how much forward thinking there have been to make sure that has not happened because it is one thing to say we do not anticipate this to happen and another is … I mean the area of material not covered by the waiver would end up with Uzbek soldiers…
Blake: I wouldn’t worry about that. We have a very detailed and a very careful process of vetting all these things. We follow where these things are going. In some cases there has to be end-use monitoring.
Reuters: On Kazakhstan -- I wonder how closely you have been following the situation with Vladimir Kozlov, the opposition leader who goes on trial on Thursday. To what extent has Kazakhstan as an important partner, how has Kazakhstan progressed in judicial reform and human rights record?
Blake: First of all, this is an important issue that we talk about a lot with our friends in Kazakhstan. We think that Kazakhstan as a former chair of OSCE has a particular responsibility to show that it is making progress on these issues. We will be following very closely the trial of Mr. Kozlov and we hope it is going to be conducted in a fair, impartial, and open way, that we and others will be able to monitor the trial. We also hope that the trial itself will not undermine some of the progress that Kazakhstan is making to develop a multi-party democracy. We are pleased that for the first time, as a result of the most recent elections, there are now three parties in the Parliament. We want to try to encourage these parties to take an active role. Again, we do not want to see this trial undermine that progress.
AP: Do you think it will?
Blake: I don’t want to speculate. We will see. Obviously that is why we are going to monitor it closely.
Bloomberg: Talking about Kazakhstan….There was a riot and a few terrorist attacks, attempts I mean. Are you more concerned about political stability here? What is your impression?
Blake: I wouldn’t say we are concerned about political stability. I would say we share the concern of the local authorities about these attacks. It underlines again the importance of the counter-terrorism cooperation that we have with our friends in Kazakhstan. But it also underlines the importance of the authorities’ doing everything they can to respond to the needs and grievances of Kazakhstani citizens and not allowing these grievances to go unaddressed and perhaps give rise to terrorism or violent confrontation as opposed to peaceful means of resolving disputes. These are all part of our dialogue with our friends in the government and an important part of what we talk about all the time. We will have another session at the UN General Assembly in September. We strongly support what Kazakhstan is trying to achieve here. We are working with them. But we do believe they need to take further steps on things like religious freedom. You all have heard us talk about our concerns on the new religion law, which requires many groups now to re-register. Those kinds of things, if not properly handled, can give rise to greater grievances against the government and indirectly fuel the kinds of incidents that we have seen. It is important for the government to take steps not only on the counter-terrorism front but also on a wider democracy front.
Reuters: In these negotiations, how receptive are the authorities to these recommendations?
Blake: I think they are receptive. We always hear that they want to proceed in a measured but steady way to make progress on those things. We want to see that. Again, it is in their interests to do that. I think, candidly, many Kazakhstanis that we have spoken to have said that they understand that a lot of attacks that we have seen from groups like Jund al-Khalifa are not from international terrorist networks. These are due to grievances that are locally based, and therefore it underlines the importance of the government’s taking actions to address those grievances. Thank you for your time.
On-the-Record Briefing with International MediaPress Availability
Robert O. Blake, Jr.
Assistant Secretary, Bureau of South and Central Asian Affairs
Almaty, Kazakhstan
August 15, 2012
A/S Blake: I am in Kazakhstan for a few hours. Right after this I will be having a meeting with business community to talk a little bit about all our efforts to promote regional economic integration and help Afghanistan and so forth. I thought it would be useful to talk to each of you as well about Kazakhstan and some of our regional integration efforts. I will just make a few opening comments and I will be glad to take your questions.
We are on the record unless we say otherwise. Just to start with, I am really delighted to be back here in Almaty and particularly delighted to be here in the wake of Kazakhstan’s great Olympics success, which I gather got quite a lot of attention here and got a lot of attention in the U.S. A relatively small country like Kazakhstan getting six gold medals and ten medals overall was quite a bit, so congratulations.
Reuters: Seven medals.
Blake: Was it?
Reuters: Seven gold medals and twelfth ranking among the countries.
Blake: Right. In terms of our relations with Kazakhstan, I think they are deepest and broadest of all countries in Central Asia. That is reflected in our decision earlier this year to establish a strategic partnership dialogue with Kazakhstan because we are increasingly working not just bilaterally with Kazakhstan but increasingly multilaterally. Not only in terms of Kazakhstan’s efforts in regional organizations, such the Organization of Islamic Cooperation, but also increasingly Kazakhstan is looking to expand its own assistance programs, to play a larger role in the regional integration process and work a lot on some of the very important regional issues, such as non-proliferation and so on. All of these are very consistent with what we are trying to accomplish and again one of the reasons why we have a very good partnership with Kazakhstan.
Kazakhstan, and really Almaty in particular, is also important, I think, because it is a regional hub, not just for business, but also for a lot of the international organizations that we work with to try to promote this regional integration idea. Again it is a good opportunity for me to have a few hours to come here. Secretary Clinton has talked a lot about our goals helping Afghanistan to become a secure state and a prosperous country and a secure, stable, and prosperous country within a secure, stable, and prosperous region. There have been a tremendous number of efforts over the last few years to help that goal. You know about a number of international conferences that took place, including the NATO Summit in Lisbon in 2010, continuing with conferences in Istanbul and Bonn and recently the NATO summit in Chicago and the Tokyo Conference in early July. I think all of those, particularly the last two conferences, have sent a very strong message of the strong long-term commitment of the international community to Afghanistan’s future, and I want to say that we appreciate very much Kazakhstan’s role in all of this.
Kazakhstan sent a representative to the NATO Summit and was also strongly represented in all these conferences. It is also taking a leadership role and is helping to develop all these transport corridors. For example, a rail line going down through Turkmenistan to Afghanistan and also some other important efforts they are helping with, for example, training young Afghan students here in Kazakhstan. I think it is quite an important time and it is important that we have Kazakhstan working with us. In terms of our wider efforts, you have all heard Secretary Clinton talk about this New Silk Road vision. She has talked about how we want to help these three important transitions that are going to occur in Afghanistan. The security transition, you are all aware of, whereby all of the NATO troops will leave Afghanistan by the end of 2014. There will be a residual force that will remain and that remains to be negotiated, the exact composition of that.
In the meantime, we are all working to build up the Afghan national security forces so that they can take complete control over their own security. There is equally important political transition that will occur with the elections that will take place in 2014. And then last but not least, the economic transition as well, to help Afghanistan become more self-sufficient economically, to build up a private sector, and a very important part of that is the regional integration piece.
There are really two different parts to this. First is what we call the software, which is trade liberalization, reduction of non-tariff trade barriers, reducing delays on border clearances, and those kinds of obstacles to trade. The second is the equally important task of all the infrastructure – the web of roads, pipelines, electricity transmission lines and so forth that are really the nuts and bolts of regional economic connectivity. I think quite a lot of progress has been made on projects like the Turkmenistan-Afghanistan-Pakistan-India gas pipeline and a lot of these railroads that I talked about.
Again, we appreciate very much the role Kazakhstan played in that. In March of this year, many of you may have been at this conference in Tajikistan, the Regional Economic Cooperation Conference for Afghanistan, RECCA, which for the first time resulted in quite a good detailed blueprint that all of the region endorsed. It was developed by Afghanistan and endorsed by the whole region and included series of projects and also all these software projects that I talked about. So, there is a good clear regional consensus on the way forward. Progress has been made and again we do appreciate the support Kazakhstan has provided to that. With those opening remarks, let me turn it over to you. We have about 20 minutes and then I have to run off to another event. Thank you for your time and thanks for coming.
AP: On the software issue, I am interested about Uzbekistan in particular because they seem to be the country that creates a lot of problems, seems to me, in terms of the political situation and actually lately the investment situation is looking as grim as ever, latest problem over there, with one of the mobile service providers. Given how little progress we see in Uzbekistan, how realistic it is to talk about the software being in place for Uzbekistan’s role in the region.
Blake: You are right there are challenges now in the investment climate in Uzbekistan. I am going to Uzbekistan later today and we are bringing with us a fairly large delegation of American companies. So, there is still a lot of private sector interest. But I think there is still quite a lot Uzbekistan needs to do to improve its investment climate, such as the currency convertibility issue, and a lot of bureaucratic procedures that still make it difficult to do business in Uzbekistan. As to your wider question, I think, first of all, it is important to note that Uzbekistan has been quite an important leader in developing many of the kinds of things that I talked about. For example, Uzbekistan built a rail line south to Mazar-e-Sharif in cooperation with the Asian Development Bank.
That is now the main rail line that goes through Central Asia, and a lot of the equipment and supplies for our troops in Afghanistan go through that rail line. Secondly, Uzbekistan has provided a great deal of electricity to Afghanistan that helped light Kabul and many other parts of Afghanistan. That’s been a tremendous help. I think they are cooperating in a lot of these efforts that the ADB has on the way, for example the CAREC effort, where there is I think quite a lot of important work to get at these issues, like how do you reduce the border clearance and delays, how do you address corruption, how do you begin to harmonize customs and other types of regulations. I think Uzbekistan is cooperating. They have an interest in that. They are the most centrally located country. So, this is a work in progress. This is something very much on our agenda. This is something that we want to work on with our friends in Uzbekistan to try to make progress on.
Bloomberg: As I am from Bloomberg, a gas pipeline is what we are more interested more in. You mentioned TAPI. Taking into account that China has built a big pipeline. And Russia has a project for another pipeline from Turkmenistan. Do you think the project will be feasible and when it can be realized?
Blake: Do you mean feasible in terms of gas supplies?
Bloomberg: Yes.
Blake: I think there are sufficient gas supplies. We have always supported the development of multiple pipelines out of Turkmenistan and other countries as well to support their energy independence. But we see that the TAPI gas pipeline is particularly important because it’s going to join two of the most important end-points in this regional connectivity that we talk about, Turkmenistan and India. India, of course, has gigantic energy needs because of its fast-growing economy. They need lots of gas. I think that is what really helped drive this project. There is now a real market in India and they can afford to pay for the gas. Turkmenistan has sufficient gas to fuel this pipeline.
The pipeline would also provide significant transit revenues for both Afghanistan and Pakistan. That is also quite important to this vision that I talked earlier about for Afghanistan. So, in terms of the pipeline I think there has been good progress on what they call gas sale-purchase agreements between these countries. The next milestone is that there will be a road show that will take place sometime in September, at which they will begin to have concrete discussions about who is going to form and lead this consortium to actually build this pipeline. This is a crucial series of discussions that will take place.
Bloomberg: Are American companies going to be engaged?
Blake: Certainly. The road show will be going to the United States but also other countries as well. Many American companies are very interested in participating.
Bloomberg: Do you mean investors or contractors?
Blake: It depends on what’s on offer. There are a lot of risks to participating in such a pipeline. Part of their consideration will be what kind of incentives Turkmenistan will be prepared to offer international companies to get involved in that project. We will see when the road show takes place.
Reuters: Tajikistan - How do you assess the security situation given the recent events in Gorno-Badakhshan? What has the Tajikistan government asked for in terms of security assurances ahead of the drawdown role that the U.S. will play in Tajikistan?
Blake: First of all, I think the situation in Khorogh has stabilized somewhat. I think the curfew and so forth still remains there. We have been very active in helping to evacuate some of the American citizens that were in that part of the country. We continue to follow the situation very closely. This is something of significant concern to us. This is an area that has not always been under the control of the central government in Tajikistan. This is an area where a lot of drug smuggling takes place. So, it shows importance of some of the work that we and others have underway, to help the government provide border security, to be able to monitor what comes across that border, particularly in that region. It also reinforces the need for the government to continue to take its own measures to stop the drug trade, to stop a lot of these narco-criminal networks that are operating in that part of the country. So, we support them in their efforts to do so. We have various efforts underway to help the Tajik government. One of the important things that they must do is to address some of the corrupt activities of their own border guards and others who are helping to facilitate some of this trade. I think it is a two-way street, where the international community can help with border security and other things, and the Tajik government itself must take steps to address some of the corrupt activities.
As to the future, I think Tajikistan has been a very strong supporter of what we are trying to accomplish in Afghanistan. They hosted this very important RECCA conference. They have always been open to any way they can help Afghanistan. They, of course, are themselves very poor. But they strongly support these regional integration efforts that we are trying to promote. So, we see Tajikistan as an important partner and we want to try to work with them as much as possible to address some of the challenges that they face, particularly the narcotics trafficking and the border security issues. They have legitimate concerns about attempts from groups that are based either in Afghanistan or Pakistan trying to cross their borders, either to attack their own government or move up to Kyrgyzstan or potentially even Kazakhstan. It is very important for them to work not only with the international community, but also with Kyrgyzstan and other countries in the region to address these problems.
AP: Going back to Uzbekistan…Would you have a chance to talk to raise the issue of accreditation for foreign journalists, which has been an issue for number of years. There is that issue.
Blake: Accreditation to visit or to be based there?
AP: Actually, to visit. I have been here for four years and I have never been granted any kind of permission, even to attend a conference or something like that. And I tried.
Blake: In general, we do talk a lot about freedom of the press and freedom of the media. We have problems with some of the American human rights organizations, like Human Rights Watch and others. But I was not aware that there was that obstacle. I will be glad to talk about that.
AP: The only international agency that is allowed is AFP.
Blake: I know that CNN was recently granted access. They went and generated quite a lot of reports.
AP: They did, although it’s a long story... It is quite conditional given the content of their reports. Also in Uzbekistan, there have been some reports from Russian media recently suggesting the possibility that during the drawdown during 2014 that military equipment might be left along. What assurances can be made making certain that the wrong things do not end in the wrong hands, by which I mean weaponry.
Blake: First of all, the process of allocating Excess Defense Articles is only just beginning. We are beginning the consultations on that. It won’t be just for Uzbekistan but for all countries partnering on NDN. There will be quite detailed conversations with our military people based in embassies in each of these posts, with host nation counterparts on this thing. With respect to Uzbekistan, I do not think there will be any lethal weapons of any kind that will be offered. I think most of the kind of things that will be on offer will be military vehicles, Humvees, those kind of things. It is in our interests to provide those kinds of equipment. Uzbekistan has been a strong supporter of the NDN. That has in turn raised their profile with international terrorist organizations, who may want to target Uzbekistan in retribution. So, it is very much in our interest to help Uzbekistan defend itself against such attacks.
We are certainly prepared to think about how we can do that. I myself have been engaged over the last year in the U.S. Congress to get a waiver so that we can provide non-lethal military assistance to Uzbekistan, even though they have not met a lot of the human rights conditions that would allow for more regular military assistance. That waiver has been approved. We are providing non-lethal military assistance now and will continue to do so, and the EDA process will be one way that we could help.
AP: There have been concerns expressed that perhaps in an informal fashion that somehow things might end in the wrong hands. I am wondering how much forward thinking there have been to make sure that has not happened because it is one thing to say we do not anticipate this to happen and another is … I mean the area of material not covered by the waiver would end up with Uzbek soldiers…
Blake: I wouldn’t worry about that. We have a very detailed and a very careful process of vetting all these things. We follow where these things are going. In some cases there has to be end-use monitoring.
Reuters: On Kazakhstan -- I wonder how closely you have been following the situation with Vladimir Kozlov, the opposition leader who goes on trial on Thursday. To what extent has Kazakhstan as an important partner, how has Kazakhstan progressed in judicial reform and human rights record?
Blake: First of all, this is an important issue that we talk about a lot with our friends in Kazakhstan. We think that Kazakhstan as a former chair of OSCE has a particular responsibility to show that it is making progress on these issues. We will be following very closely the trial of Mr. Kozlov and we hope it is going to be conducted in a fair, impartial, and open way, that we and others will be able to monitor the trial. We also hope that the trial itself will not undermine some of the progress that Kazakhstan is making to develop a multi-party democracy. We are pleased that for the first time, as a result of the most recent elections, there are now three parties in the Parliament. We want to try to encourage these parties to take an active role. Again, we do not want to see this trial undermine that progress.
AP: Do you think it will?
Blake: I don’t want to speculate. We will see. Obviously that is why we are going to monitor it closely.
Bloomberg: Talking about Kazakhstan….There was a riot and a few terrorist attacks, attempts I mean. Are you more concerned about political stability here? What is your impression?
Blake: I wouldn’t say we are concerned about political stability. I would say we share the concern of the local authorities about these attacks. It underlines again the importance of the counter-terrorism cooperation that we have with our friends in Kazakhstan. But it also underlines the importance of the authorities’ doing everything they can to respond to the needs and grievances of Kazakhstani citizens and not allowing these grievances to go unaddressed and perhaps give rise to terrorism or violent confrontation as opposed to peaceful means of resolving disputes. These are all part of our dialogue with our friends in the government and an important part of what we talk about all the time. We will have another session at the UN General Assembly in September. We strongly support what Kazakhstan is trying to achieve here. We are working with them. But we do believe they need to take further steps on things like religious freedom. You all have heard us talk about our concerns on the new religion law, which requires many groups now to re-register. Those kinds of things, if not properly handled, can give rise to greater grievances against the government and indirectly fuel the kinds of incidents that we have seen. It is important for the government to take steps not only on the counter-terrorism front but also on a wider democracy front.
Reuters: In these negotiations, how receptive are the authorities to these recommendations?
Blake: I think they are receptive. We always hear that they want to proceed in a measured but steady way to make progress on those things. We want to see that. Again, it is in their interests to do that. I think, candidly, many Kazakhstanis that we have spoken to have said that they understand that a lot of attacks that we have seen from groups like Jund al-Khalifa are not from international terrorist networks. These are due to grievances that are locally based, and therefore it underlines the importance of the government’s taking actions to address those grievances. Thank you for your time.
ISAF REPORTS 11 KILLED IN HELICOPTER CRASH IN AFGHANISTAN
FROM: U.S. DEPARTMENT OF DEFENSE, ISAF
Helicopter Crash in Afghanistan Kills 11
From an International Security Assistance Force News ReleaseKABUL, Afghanistan, Aug. 16, 2012 - Eleven people were killed today when their International Security Assistance Force helicopter crashed in southern Afghanistan, ISAF officials reported.
The crash killed four ISAF service members, three U.S. Afghanistan service members, three members of the Afghan national security forces and an Afghan civilian interpreter, officials said.
The cause of the crash is under investigation, and ISAF policy defers casualty identification procedures to the relevant national authorities.
VA INSTALLS NEW ENVIRONMENTAL MANAGEMENT SYSTEM AT CENTRAL OFFICE
FROM: U.S. DEPARTMENT OF VETERANS AFFAIRS
WASHINGTON – The Department of Veterans Affairs recently completed the installation of a sophisticated Environmental Management System (EMS) at its central office, which will provide an estimated $3.5 million in savings over the next five years.
"At VA, we strive to be a leader in promoting energy conservation and reducing our environmental footprint," said Secretary of Veterans Affairs Eric K. Shinseki. "It is part of fulfilling our financial responsibilities, and it’s the right thing to do."
In 2009, the White House issued executive orders to set sustainability goals for federal agencies to improve their environmental, energy and economic performance. In support, VA established an initiative for using emerging technologies to understand energy demands and help manage complex energy data for day-to-day and strategic goals.
"EMS provides us an opportunity to reduce our energy use, save taxpayer money, and create a model for energy management across disparate facilities in the Federal government," said Assistant Secretary for the Office of Information and Technology Roger Baker. "Information technology can play a valuable role in adapting performance data to simple, actionable visualizations for short-term and long-term change in energy management."
The EMS installation at VA’s central office is illustrative of a larger initiative to enhance energy management across the National Capital Region. The system collects and reports 3,000 energy data points every 10 seconds, including main electrical and water services, lighting, plug loads, air conditioning, cooling towers, motors and chillers. The system analyzes these data in real-time to identify usage patterns, and allow for credible forecasting of potential cost-savings scenarios.
"In a fiscally-constrained environment, the need to closely monitor energy consumption is not only a good idea, it’s a business imperative," said Assistant Secretary for the Office of Human Resources and Administration (HRA) John U. Sepúlveda. "The initiative has afforded VA central office the opportunity to be the forerunners in process improvements as we identify areas to cut waste and reduce energy consumption. Great strides have already been made in this area, but more can be done."
EMS is a partnership between two offices within the VA - Information and Technology and HRA - and the General Services Administration (GSA).
The VA EMS is easily adaptable for use by other government agencies, especially those with large building portfolios such as GSA and the Department of Defense. In particular, VA’s 94-year-old central office location is a case study on how information technology and building facilities can work together to reduce energy consumption and maintenance cost in older government buildings.
U.S. AIR FORCE SPACE COMMAND'S CHANGE IN MISSION 2001
The Jan. 1, 2001 release of the Congressionally-chartered Space Commission report set the stage for significant organizational and mission changes for AFSPC. (Courtesy of Department of Defense/dod.gov)
FROM: U.S. DEPARTMENT OF DEFENSE
AFSPC Milestone: Space commission report released
8/15/2012 - Peterson AFB, Colo. -- As Air Force Space Command approaches its 30th Anniversary on 1 Sep, here is a significant milestone from the command's history...
On 11 January 2001, the release of the Congressionally-chartered Space Commission report set the stage for significant organizational and mission changes for AFSPC.
Recommendations from the report led to AFSPC becoming a four-star Air Force command and its commander no longer triple-hatted with U.S. Space Command and NORAD, allowing AFSPC commanders the ability to focus their time and energy on organizing, training, and equipping U.S. Air Force space forces. In addition, the Space and Missile Systems Center was transferred from AFMC to AFSPC, bringing to the command responsibility for the development and acquisition of space and missile systems, thus merging operations and acquisitions functions within a single organization.
FROM: U.S. DEPARTMENT OF DEFENSE
AFSPC Milestone: Space commission report released
8/15/2012 - Peterson AFB, Colo. -- As Air Force Space Command approaches its 30th Anniversary on 1 Sep, here is a significant milestone from the command's history...
On 11 January 2001, the release of the Congressionally-chartered Space Commission report set the stage for significant organizational and mission changes for AFSPC.
Recommendations from the report led to AFSPC becoming a four-star Air Force command and its commander no longer triple-hatted with U.S. Space Command and NORAD, allowing AFSPC commanders the ability to focus their time and energy on organizing, training, and equipping U.S. Air Force space forces. In addition, the Space and Missile Systems Center was transferred from AFMC to AFSPC, bringing to the command responsibility for the development and acquisition of space and missile systems, thus merging operations and acquisitions functions within a single organization.
U.S. DOD SAYS U.S.-BOTSWANA WORKING TOGETHER
Assistant Adjutant General - Army, Tennessee National Guard
Brigadier General Isaac G. Osborne, Jr. is the Assistant Adjutant General - Army, Tennessee National Guard. He was appointed on 11 January 2010. He is the principal advisor to the Adjutant General on matters pertaining to the Tennessee Army National Guard, and is responsible for coordinating policies, programs, and plans affecting the Soldiers of the Tennessee Army National Guard. He is also dual-hatted as Deputy Commander and Army Reserve Component Integration Advisor, United States Army Southern European Task Force, United States Africa Command. General Osborne served in various assignments as a full-time Tennessee National Guardsmen in the Federal Civil Service until his retirement in February 2009.
General Osborne was commissioned a 2nd Lieutenant, Signal Corps, through the Reserve Officer Training Corps program at East Tennessee State University on 7 June 1974 and served on Active Duty from 1974 -1978. He was appointed in the Tennessee Army National Guard 1 October 1978 from the United States Army Reserve Control Group.
FROM: U.S. DEPARTMENT OF DEFENSE
U.S., Botswana Forces Build Capability, Partnership
By Donna Miles
American Forces Press Service
THEBEPHATSHWA AIR BASE, Botswana, Aug. 14, 2012 - An exercise under way here between the U.S. military and the Botswana Defense Force is building capability in a growing African partner and helping to set conditions for long-term peace, stability and security on the African continent, the exercise director told American Forces Press Service.
Southern Accord 12 kicked off Aug. 1 and continues through this week, bringing together more than 600 U.S. soldiers, airmen, Marines and sailors and more than 700 of their Botswana Defense Force counterparts.
The exercise, led by U.S. Army Africa, includes joint training activities designed to enhance the capabilities of both militaries, Army Brig. Gen. Isaac G. Osborne Jr., the exercise director and assistant adjutant general for the Tennessee National Guard, told American Forces Press Service.
It includes classroom and field exercises focused on a variety of areas, including humanitarian assistance and disaster relief, anti-poaching, peacekeeping and convoy operations and aeromedical evacuation.
Also during the exercise, the Botswana Defense Force and U.S. troops are conducting outreach programs in several rural areas. These activities include dental and medical examinations, veterinary assistance and support for Botswana's national safe male circumcision program, part of its effort to fight the spread of HIV.
These efforts, Osborne said, reflect the U.S. Army Africa and U.S. Africa Command focus on helping African nations address African problems and challenges. "The concept is to promote security and stability and peace in the continent and be able to train a nation to take care of itself or to conduct peacekeeping operations in other nations," he said.
The 50,000-member Botswana Defense Force has made great strides since it was stood up in 1977, 11 years after Botswana gained independence. It has served in Operation Restore Hope in Somalia, as observers in the U.N. peacekeeping mission in Rwanda, in the U.N. peacekeeping mission in Mozambique, and in the South African Development Community intervention in Lesotho, as well as in U.N. peacekeeping operations in Somalia and the Darfur region of Sudan. Botswana Defense Force members also serve on an African Union Liaison Mission in Ethiopia/Eritrea, and Botswana has military observers in Darfur.
said he's been impressed with the Botswana Defense Force's capabilities and the interest they have in building on them.
"They have made a lot of progress, and they are open to new ideas and training," he said. "Their people are very interested in the training that we are giving. They want to learn everything they can about us and the U.S. military."
But the general emphasized that the learning is taking place on both sides, with the U.S. troops learning as the Botswana Defense Force shares its own tactics, techniques and procedures and insights into its culture.
In the process, Osborne said, his soldiers have gained a new appreciation of their African counterparts.
"We have had a lot of cases where our officers and [noncommissioned officers] have said they would take these [Botswana] soldiers side by side with them any day," he said.
After almost three years with U.S. Army Africa, Osborne said, he's optimistic about the growing receptiveness of many African nations to increasing their military-to-military engagements with the United States.
"As they learn more about what we are doing, many are deciding that they want to be involved with U.S. Army Africa's training," he said.
Brigadier General Isaac G. Osborne, Jr. is the Assistant Adjutant General - Army, Tennessee National Guard. He was appointed on 11 January 2010. He is the principal advisor to the Adjutant General on matters pertaining to the Tennessee Army National Guard, and is responsible for coordinating policies, programs, and plans affecting the Soldiers of the Tennessee Army National Guard. He is also dual-hatted as Deputy Commander and Army Reserve Component Integration Advisor, United States Army Southern European Task Force, United States Africa Command. General Osborne served in various assignments as a full-time Tennessee National Guardsmen in the Federal Civil Service until his retirement in February 2009.
General Osborne was commissioned a 2nd Lieutenant, Signal Corps, through the Reserve Officer Training Corps program at East Tennessee State University on 7 June 1974 and served on Active Duty from 1974 -1978. He was appointed in the Tennessee Army National Guard 1 October 1978 from the United States Army Reserve Control Group.
FROM: U.S. DEPARTMENT OF DEFENSE
U.S., Botswana Forces Build Capability, Partnership
By Donna Miles
American Forces Press Service
THEBEPHATSHWA AIR BASE, Botswana, Aug. 14, 2012 - An exercise under way here between the U.S. military and the Botswana Defense Force is building capability in a growing African partner and helping to set conditions for long-term peace, stability and security on the African continent, the exercise director told American Forces Press Service.
Southern Accord 12 kicked off Aug. 1 and continues through this week, bringing together more than 600 U.S. soldiers, airmen, Marines and sailors and more than 700 of their Botswana Defense Force counterparts.
The exercise, led by U.S. Army Africa, includes joint training activities designed to enhance the capabilities of both militaries, Army Brig. Gen. Isaac G. Osborne Jr., the exercise director and assistant adjutant general for the Tennessee National Guard, told American Forces Press Service.
It includes classroom and field exercises focused on a variety of areas, including humanitarian assistance and disaster relief, anti-poaching, peacekeeping and convoy operations and aeromedical evacuation.
Also during the exercise, the Botswana Defense Force and U.S. troops are conducting outreach programs in several rural areas. These activities include dental and medical examinations, veterinary assistance and support for Botswana's national safe male circumcision program, part of its effort to fight the spread of HIV.
These efforts, Osborne said, reflect the U.S. Army Africa and U.S. Africa Command focus on helping African nations address African problems and challenges. "The concept is to promote security and stability and peace in the continent and be able to train a nation to take care of itself or to conduct peacekeeping operations in other nations," he said.
The 50,000-member Botswana Defense Force has made great strides since it was stood up in 1977, 11 years after Botswana gained independence. It has served in Operation Restore Hope in Somalia, as observers in the U.N. peacekeeping mission in Rwanda, in the U.N. peacekeeping mission in Mozambique, and in the South African Development Community intervention in Lesotho, as well as in U.N. peacekeeping operations in Somalia and the Darfur region of Sudan. Botswana Defense Force members also serve on an African Union Liaison Mission in Ethiopia/Eritrea, and Botswana has military observers in Darfur.
said he's been impressed with the Botswana Defense Force's capabilities and the interest they have in building on them.
"They have made a lot of progress, and they are open to new ideas and training," he said. "Their people are very interested in the training that we are giving. They want to learn everything they can about us and the U.S. military."
But the general emphasized that the learning is taking place on both sides, with the U.S. troops learning as the Botswana Defense Force shares its own tactics, techniques and procedures and insights into its culture.
In the process, Osborne said, his soldiers have gained a new appreciation of their African counterparts.
"We have had a lot of cases where our officers and [noncommissioned officers] have said they would take these [Botswana] soldiers side by side with them any day," he said.
After almost three years with U.S. Army Africa, Osborne said, he's optimistic about the growing receptiveness of many African nations to increasing their military-to-military engagements with the United States.
"As they learn more about what we are doing, many are deciding that they want to be involved with U.S. Army Africa's training," he said.
RECENT NAVY PHOTOS
FROM: U.S. NAVY
British Royal navy destroyer HMS Diamond (D 34) maneuvers alongside the aircraft carrier USS Enterprise (CVN 65). Enterprise is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. U.S. Navy photo by Mass Communication Specialist 3rd Class Randy J. Savarese (Released) 120808-N-JV638-041
A Sailor assigned to the Cyclone-class Coastal patrol ship USS Hurricane (PC 3) throws a heaving line as the ship pulls into Chicago for the Navy's commemoration of the Bicentennial of the War of 1812. The commemoration coincides with Chicago Navy Week, one of 15 signature events planned across America in 2012. Service members from the U.S. Navy, Marine Corps, Coast Guard and Royal Canadian navy will participate in the weeklong event, which culminates with performances by the U.S. Navy's flight demonstration team, the Blue Angels, at the 2012 Chicago Air and Water Show. U.S. Navy photo by Mass Communication Specialist 1st Class Davis Anderson (Released) 120814-N-HZ247-033
Vice Chief of Naval Operations visits USS Ponce Vice Chief of Naval Operations (VCNO) Adm. Mark Ferguson speaks with Sailors assigned to the Afloat Forward Staging Base (Interim) USS Ponce (AFSB 15) in the combat direction center. Ponce, formerly designated as an amphibious transport dock (LPD), was converted and reclassified as an AFSB(I) in April to fulfill a long-standing U.S. Central Command request for an AFSB to be located in its area of responsibility. Ferguson is visiting deployed Sailors and leadership in the U.S. 5th Fleet area of operations to thank Navy personnel and to demonstrate the continued commitment to regional partners. U.S. Navy photo by Mass Communications Specialist 2nd Class John Callahan (Released) 120814-N-AZ513-018
U.S. STATE DEPARTMENT: PROFILE OF PORTUGAL
Map From: U.S. State Department
FROM: U.S. STATE DEPARTMENT
Geography
Area: 92,391 sq. km.; includes continental Portugal, the Azores (2,333 sq. km.) and Madeira Islands (828 sq. km.); slightly smaller than the State of Indiana; located in Europe's southwest corner bordered by Spain (North and East, 1,214 km.) and the Atlantic Ocean (West and South, 1,793 km.).
Major cities: Lisbon (capital, metropolitan area pop. 2.1 million); Porto (metropolitan area pop. 1.9 million).
Terrain: Mountainous in the north; rolling plains in the central and southern regions.
Climate: Maritime temperate (Atlantic-Mediterranean); average annual temperature is 61°F. Temperatures may drop into the low 30s (°F) at night during the coldest months, with daytime highs in the 50s and 60s. The remainder of the year is normally sunny with minimal rainfall. Days are pleasant, with temperatures seldom exceeding 95°F, except in the southern interior of the country; afternoons and evenings are breezy, with nighttime temperatures in the 60s and low 70s; May-October (dry and warm), November-April (cool with rain and wind in the north, mild in the south).
People
Nationality: Noun and adjective--Portuguese (singular and plural).
Population (2011 est.): 10.6 million. Ages 0 to 14 years--1.6 million (male 830,611; female 789,194). Ages 15 to 24 years--1.2 million (male 609,177; female 585,072). Ages 25 to 64 years--5.9 million (male 2,917,633; female 3,013,120). Ages 65 years and over--1.9 million (male 787,967; female 1,099,715).
Population density: 114 per sq. km. (44 per sq. mi.).
Annual population growth rate (2008 est.): 0.8%.
Ethnic groups: Homogeneous Mediterranean stock with small minority groups from Africa (Angola, Cape Verde, Mozambique), South America (Brazil), and Eastern Europe (Ukraine, Romania).
Religion: Roman Catholic 92%, Protestant 4%, atheists 3%, others 1%.
Language: Portuguese.
Education: Years compulsory--12. Literacy (2008)--94.9%.
Health (2010): Birth rate--9.5/1,000 (1.07 male/female). Death rate--10.0/1,000. Infant mortality rate--2.5/1,000. Life expectancy--79.2 years.
Work force (2010): 5.57 million. Government and services (59.8%); industry and manufacturing (28.5%); agriculture and fishing (11.7%).
Government
Type: Republic.
Constitution: Effective April 25, 1976; revised 1982, 1989, 1992, 1997, 2001, 2004, and 2005.
Branches: Executive--president (head of state), Council of State (presidential advisory body), prime minister (head of government), Council of Ministers. Legislative--unicameral Assembly of the Republic (230 deputies): PS=74, PSD=108, PCP=14, CDS/PP=24, BE=8, PEV=2. Judicial--Supreme Court, District Courts, Appeals Courts, Constitutional Tribunal.
Major political parties: Socialist Party (PS); Social Democratic Party (PSD); Portuguese Communist Party (PCP); Popular Party (CDS/PP); Left Bloc (BE); Green Party (PEV).
Administrative subdivisions: 18 districts (Lisbon, Leiria, Santarem, Setubal, Beja, Faro, Evora, Portalegre, Castelo Branco, Guarda, Coimbra, Aveiro, Viseu, Braganca, Vila Real, Porto, Braga, Viana do Castelo); 2 autonomous island regions (the Azores and Madeira).
Economy
GDP (2010 est.): €160.3 billion (approx. $208 billion).
Annual growth rate (2010 est.): 0.91%.
Per capita GDP (2010 est.): €18,453 (approx. $23,965).
Avg. inflation rate (2010 est.): 1.2%.
Services (75.4% gross value added): Wholesale and retail trade; hotels and tourism; restaurants; transport, storage and communication; real estate; banking and finance; repair; government, civil, and public sectors.
Industry (22.3% gross value added): Textiles, clothing, footwear, wood and cork, paper, chemicals, auto-parts manufacturing, base metals, dairy products, wine and other foods, porcelain and ceramics; glassware, technology; telecommunications.
Agriculture (2.3% gross value added): Livestock, crops, fish.
Trade (2010): Exports--€36.8 billion (approx. $28.3 billion): machinery and tools 14.9%; textile materials, clothing and footwear 13.7%; vehicles and other transport materials 12.4%; wood, cork, paper and wood pulp 9.2%; other 49.8%. Imports--€55 billion (approx. $42.3 billion): machinery and tools 16.3%; oil products 14.7%; vehicles and other transport material 14.1%; chemical products 10%; agricultural products 9.5%; other 35%. Export partners--Spain (26.6%); Germany (13.9%); France (11.8%); United Kingdom (5.5%); Angola (5.2%); Netherlands (3.8%); Italy (3.8%); United States (3.6%); Belgium (2.9%); Brazil (1.2%); other (22%). EU 27 (74%). Import partners--Spain (31.2%); Germany (13.9%); France (7.3%); Italy (5.7%); Netherlands (5.1%); United Kingdom (3.8%); Belgium (2.9%); China (2.8%); Nigeria (2.4%); Brazil (1.8%); other (23.1%). EU 27 (75.6%).
U.S. trade with Portugal (2010): Exports--$1 billion: transportation equipment (21.9%); computer and electronic products (15.2%); agricultural products (7.7%); machinery (7.5%); all others (47.7%). Imports--$2.1 billion: mineral fuels, oils (28.5%); transportation equipment (10.2%); wood products (7.9%); paper (6.6%); all others (46.8%).
Foreign direct investment (FDI, 2010): Incoming FDI by industry--wholesale and retail 39.3%; manufacturing 24.4%; financial and insurance activities 18.2%; information and communication activities 5.6%; consultancy, scientific, and technical activities 3.1%; real estate 1.2%; construction 1%; electricity, gas, water 0.6%; other 6.6%. Incoming FDI by country in euros (total €35 billion; approx. $26.9 billion)--Germany 18.3%; France 16.7%; United Kingdom 13.8%; Spain 13.6%; Netherlands 10.3%; Luxembourg 7%; Brazil 5.5%; Switzerland 5.2%; Belgium 2.4%; Ireland 1.8%; other 5.4%. Portuguese FDI abroad by country in euros (total €6.8 billion; approx. $5.2 billion)--Luxembourg 18.5%; Brazil 17.1%; Spain 13.5%; Netherlands 12.1%; Angola 3.3%; Poland 3.2%; United States 2.7%; United Kingdom 1.9%; Romania 1.5%; France 1.3%; other 24.9%.
Exchange rate: (2009) U.S. $1 = 0.74 EUR (€); (2010) U.S. $1 =0.77 EUR.
HISTORY
Portugal is one of the oldest states in Europe. It traces its modern history to A.D. 1140 when, following a 9-year rebellion against the King of Leon-Castile, Afonso Henriques, the Count of Portugal, became the country's first king, Afonso I. Afonso and his successors expanded their territory southward, capturing Lisbon from the Moors in 1147. The approximate present-day boundaries were secured in 1249 by Afonso III.
By 1337, Portuguese explorers had reached the Canary Islands. Inspired by Prince Henry the Navigator (1394-1460), explorers such as Vasco da Gama, Bartolomeu Dias, and Pedro Alvares Cabral made explorations from Brazil to India and Japan. Portugal eventually became a massive colonial empire with vast territories in Africa (Angola, Mozambique, Cape Verde, Guinea Bissau, Sao Tome) and Latin America (Brazil), and outposts in the Far East (East Timor, Macau, Goa).
Dynastic disputes led in 1580 to the succession of Philip II of Spain to the Portuguese throne. A revolt ended Spanish hegemony in 1640, and the House of Braganca was established as Portugal's ruling family, lasting until the establishment of the Portuguese Republic in 1910.
During the next 16 years, intense political rivalries and economic instability undermined newly established democratic institutions. Responding to pressing economic problems, a military government, which had taken power in 1926, named a prominent university economist, Antonio Salazar, as finance minister in 1928 and prime minister in 1932. For the next 42 years, Salazar and his successor, Marcelo Caetano (appointed prime minister in 1968), ruled Portugal as an authoritarian "corporate" state. Unlike most other European countries, Portugal remained neutral in World War II. It was a charter member of NATO, joining in 1949.
In the early 1960s, wars against independence movements in Portugal's African territories began to drain labor and wealth from Portugal. Professional dissatisfaction within the military, coupled with a growing sense of the futility of the African conflicts, led to the formation of the clandestine "Armed Forces Movement" in 1973.
The downfall of the Portuguese corporate state came on April 25, 1974, when the Armed Forces Movement seized power in a nearly bloodless coup and established a provisional military government.
GOVERNMENT AND POLITICAL CONDITIONS
Portugal moved from authoritarian rule to parliamentary democracy following the 1974 military coup against Marcelo Caetano, whose rule embodied a continuation of the long-running dictatorship of Antonio Salazar. After a period of instability and communist agitation, Portugal ratified a new constitution in 1976. Subsequent revisions of the constitution placed the military under strict civilian control; trimmed the powers of the president; and laid the groundwork for a stable, pluralistic liberal democracy, as well as privatization of nationalized firms and the government-owned media. Portugal joined the European Union (EU) in 1986 and has moved toward greater political and economic integration with Europe ever since.
The four main branches of the national government are the presidency, the prime minister and Council of Ministers (the government), the Assembly of the Republic (the parliament), and the judiciary. The president, elected to a 5-year term by direct, universal suffrage, also is commander in chief of the armed forces. Presidential powers include confirming the prime minister and Council of Ministers; dismissing the prime minister; dissolving the assembly to call early elections; vetoing legislation, which may be overridden by the assembly; and declaring a state of war or siege. The Council of State, a presidential advisory body, is composed of six senior civilian officers, former presidents elected under the 1976 constitution, five members chosen by the assembly, and five selected by the president.
The government is headed by the prime minister, who is nominated by the assembly for confirmation by the president. The prime minister then names the Council of Ministers. A new government is required to present its governing platform to the assembly for approval.
The Assembly of the Republic is a unicameral body composed of 230 deputies. Elected by universal suffrage according to a system of proportional representation, deputies serve terms of office of 4 years, unless the president dissolves the assembly and calls for new elections. The national Supreme Court is the court of last appeal. Military, administrative, and fiscal courts are designated as separate court categories. A nine-member Constitutional Tribunal reviews the constitutionality of legislation.
The Azores and Madeira Islands have constitutionally mandated autonomous status. A regional autonomy statute promulgated in 1980 established the Government of the Autonomous Region of the Azores; the Government of the Autonomous Region of Madeira operates under a provisional autonomy statute in effect since 1976. Continental Portugal is divided into 18 districts, each headed by a governor appointed by the Minister of Internal Administration.
Current Administration
Socialist Party (PS) Prime Minister Jose Socrates resigned in March 2011 after his minority government’s austerity plan was rejected by the parliament. Rising unemployment and unsustainable public sector deficits led his caretaker government to seek a May 2011 EU/International Monetary Fund bailout agreement. Social Democratic Party (PSD) Prime Minister Pedro Passos Coelho’s government took office following June 5, 2011 parliamentary elections. Since then, the new government has been largely preoccupied with the implementation of broad austerity measures pursuant to the agreement.
Social Democrat Anibal Cavaco Silva, a center-right candidate and former prime minister (1985-1995), won the Portuguese presidential election on January 22, 2006 with 50.6% of the vote, becoming Portugal’s first center-right head of state in 3 decades. He was re-elected on January 23, 2011 with 53% of the vote and was sworn in on March 9, 2011.
FROM: U.S. STATE DEPARTMENT
Geography
Area: 92,391 sq. km.; includes continental Portugal, the Azores (2,333 sq. km.) and Madeira Islands (828 sq. km.); slightly smaller than the State of Indiana; located in Europe's southwest corner bordered by Spain (North and East, 1,214 km.) and the Atlantic Ocean (West and South, 1,793 km.).
Major cities: Lisbon (capital, metropolitan area pop. 2.1 million); Porto (metropolitan area pop. 1.9 million).
Terrain: Mountainous in the north; rolling plains in the central and southern regions.
Climate: Maritime temperate (Atlantic-Mediterranean); average annual temperature is 61°F. Temperatures may drop into the low 30s (°F) at night during the coldest months, with daytime highs in the 50s and 60s. The remainder of the year is normally sunny with minimal rainfall. Days are pleasant, with temperatures seldom exceeding 95°F, except in the southern interior of the country; afternoons and evenings are breezy, with nighttime temperatures in the 60s and low 70s; May-October (dry and warm), November-April (cool with rain and wind in the north, mild in the south).
People
Nationality: Noun and adjective--Portuguese (singular and plural).
Population (2011 est.): 10.6 million. Ages 0 to 14 years--1.6 million (male 830,611; female 789,194). Ages 15 to 24 years--1.2 million (male 609,177; female 585,072). Ages 25 to 64 years--5.9 million (male 2,917,633; female 3,013,120). Ages 65 years and over--1.9 million (male 787,967; female 1,099,715).
Population density: 114 per sq. km. (44 per sq. mi.).
Annual population growth rate (2008 est.): 0.8%.
Ethnic groups: Homogeneous Mediterranean stock with small minority groups from Africa (Angola, Cape Verde, Mozambique), South America (Brazil), and Eastern Europe (Ukraine, Romania).
Religion: Roman Catholic 92%, Protestant 4%, atheists 3%, others 1%.
Language: Portuguese.
Education: Years compulsory--12. Literacy (2008)--94.9%.
Health (2010): Birth rate--9.5/1,000 (1.07 male/female). Death rate--10.0/1,000. Infant mortality rate--2.5/1,000. Life expectancy--79.2 years.
Work force (2010): 5.57 million. Government and services (59.8%); industry and manufacturing (28.5%); agriculture and fishing (11.7%).
Government
Type: Republic.
Constitution: Effective April 25, 1976; revised 1982, 1989, 1992, 1997, 2001, 2004, and 2005.
Branches: Executive--president (head of state), Council of State (presidential advisory body), prime minister (head of government), Council of Ministers. Legislative--unicameral Assembly of the Republic (230 deputies): PS=74, PSD=108, PCP=14, CDS/PP=24, BE=8, PEV=2. Judicial--Supreme Court, District Courts, Appeals Courts, Constitutional Tribunal.
Major political parties: Socialist Party (PS); Social Democratic Party (PSD); Portuguese Communist Party (PCP); Popular Party (CDS/PP); Left Bloc (BE); Green Party (PEV).
Administrative subdivisions: 18 districts (Lisbon, Leiria, Santarem, Setubal, Beja, Faro, Evora, Portalegre, Castelo Branco, Guarda, Coimbra, Aveiro, Viseu, Braganca, Vila Real, Porto, Braga, Viana do Castelo); 2 autonomous island regions (the Azores and Madeira).
Economy
GDP (2010 est.): €160.3 billion (approx. $208 billion).
Annual growth rate (2010 est.): 0.91%.
Per capita GDP (2010 est.): €18,453 (approx. $23,965).
Avg. inflation rate (2010 est.): 1.2%.
Services (75.4% gross value added): Wholesale and retail trade; hotels and tourism; restaurants; transport, storage and communication; real estate; banking and finance; repair; government, civil, and public sectors.
Industry (22.3% gross value added): Textiles, clothing, footwear, wood and cork, paper, chemicals, auto-parts manufacturing, base metals, dairy products, wine and other foods, porcelain and ceramics; glassware, technology; telecommunications.
Agriculture (2.3% gross value added): Livestock, crops, fish.
Trade (2010): Exports--€36.8 billion (approx. $28.3 billion): machinery and tools 14.9%; textile materials, clothing and footwear 13.7%; vehicles and other transport materials 12.4%; wood, cork, paper and wood pulp 9.2%; other 49.8%. Imports--€55 billion (approx. $42.3 billion): machinery and tools 16.3%; oil products 14.7%; vehicles and other transport material 14.1%; chemical products 10%; agricultural products 9.5%; other 35%. Export partners--Spain (26.6%); Germany (13.9%); France (11.8%); United Kingdom (5.5%); Angola (5.2%); Netherlands (3.8%); Italy (3.8%); United States (3.6%); Belgium (2.9%); Brazil (1.2%); other (22%). EU 27 (74%). Import partners--Spain (31.2%); Germany (13.9%); France (7.3%); Italy (5.7%); Netherlands (5.1%); United Kingdom (3.8%); Belgium (2.9%); China (2.8%); Nigeria (2.4%); Brazil (1.8%); other (23.1%). EU 27 (75.6%).
U.S. trade with Portugal (2010): Exports--$1 billion: transportation equipment (21.9%); computer and electronic products (15.2%); agricultural products (7.7%); machinery (7.5%); all others (47.7%). Imports--$2.1 billion: mineral fuels, oils (28.5%); transportation equipment (10.2%); wood products (7.9%); paper (6.6%); all others (46.8%).
Foreign direct investment (FDI, 2010): Incoming FDI by industry--wholesale and retail 39.3%; manufacturing 24.4%; financial and insurance activities 18.2%; information and communication activities 5.6%; consultancy, scientific, and technical activities 3.1%; real estate 1.2%; construction 1%; electricity, gas, water 0.6%; other 6.6%. Incoming FDI by country in euros (total €35 billion; approx. $26.9 billion)--Germany 18.3%; France 16.7%; United Kingdom 13.8%; Spain 13.6%; Netherlands 10.3%; Luxembourg 7%; Brazil 5.5%; Switzerland 5.2%; Belgium 2.4%; Ireland 1.8%; other 5.4%. Portuguese FDI abroad by country in euros (total €6.8 billion; approx. $5.2 billion)--Luxembourg 18.5%; Brazil 17.1%; Spain 13.5%; Netherlands 12.1%; Angola 3.3%; Poland 3.2%; United States 2.7%; United Kingdom 1.9%; Romania 1.5%; France 1.3%; other 24.9%.
Exchange rate: (2009) U.S. $1 = 0.74 EUR (€); (2010) U.S. $1 =0.77 EUR.
HISTORY
Portugal is one of the oldest states in Europe. It traces its modern history to A.D. 1140 when, following a 9-year rebellion against the King of Leon-Castile, Afonso Henriques, the Count of Portugal, became the country's first king, Afonso I. Afonso and his successors expanded their territory southward, capturing Lisbon from the Moors in 1147. The approximate present-day boundaries were secured in 1249 by Afonso III.
By 1337, Portuguese explorers had reached the Canary Islands. Inspired by Prince Henry the Navigator (1394-1460), explorers such as Vasco da Gama, Bartolomeu Dias, and Pedro Alvares Cabral made explorations from Brazil to India and Japan. Portugal eventually became a massive colonial empire with vast territories in Africa (Angola, Mozambique, Cape Verde, Guinea Bissau, Sao Tome) and Latin America (Brazil), and outposts in the Far East (East Timor, Macau, Goa).
Dynastic disputes led in 1580 to the succession of Philip II of Spain to the Portuguese throne. A revolt ended Spanish hegemony in 1640, and the House of Braganca was established as Portugal's ruling family, lasting until the establishment of the Portuguese Republic in 1910.
During the next 16 years, intense political rivalries and economic instability undermined newly established democratic institutions. Responding to pressing economic problems, a military government, which had taken power in 1926, named a prominent university economist, Antonio Salazar, as finance minister in 1928 and prime minister in 1932. For the next 42 years, Salazar and his successor, Marcelo Caetano (appointed prime minister in 1968), ruled Portugal as an authoritarian "corporate" state. Unlike most other European countries, Portugal remained neutral in World War II. It was a charter member of NATO, joining in 1949.
In the early 1960s, wars against independence movements in Portugal's African territories began to drain labor and wealth from Portugal. Professional dissatisfaction within the military, coupled with a growing sense of the futility of the African conflicts, led to the formation of the clandestine "Armed Forces Movement" in 1973.
The downfall of the Portuguese corporate state came on April 25, 1974, when the Armed Forces Movement seized power in a nearly bloodless coup and established a provisional military government.
GOVERNMENT AND POLITICAL CONDITIONS
Portugal moved from authoritarian rule to parliamentary democracy following the 1974 military coup against Marcelo Caetano, whose rule embodied a continuation of the long-running dictatorship of Antonio Salazar. After a period of instability and communist agitation, Portugal ratified a new constitution in 1976. Subsequent revisions of the constitution placed the military under strict civilian control; trimmed the powers of the president; and laid the groundwork for a stable, pluralistic liberal democracy, as well as privatization of nationalized firms and the government-owned media. Portugal joined the European Union (EU) in 1986 and has moved toward greater political and economic integration with Europe ever since.
The four main branches of the national government are the presidency, the prime minister and Council of Ministers (the government), the Assembly of the Republic (the parliament), and the judiciary. The president, elected to a 5-year term by direct, universal suffrage, also is commander in chief of the armed forces. Presidential powers include confirming the prime minister and Council of Ministers; dismissing the prime minister; dissolving the assembly to call early elections; vetoing legislation, which may be overridden by the assembly; and declaring a state of war or siege. The Council of State, a presidential advisory body, is composed of six senior civilian officers, former presidents elected under the 1976 constitution, five members chosen by the assembly, and five selected by the president.
The government is headed by the prime minister, who is nominated by the assembly for confirmation by the president. The prime minister then names the Council of Ministers. A new government is required to present its governing platform to the assembly for approval.
The Assembly of the Republic is a unicameral body composed of 230 deputies. Elected by universal suffrage according to a system of proportional representation, deputies serve terms of office of 4 years, unless the president dissolves the assembly and calls for new elections. The national Supreme Court is the court of last appeal. Military, administrative, and fiscal courts are designated as separate court categories. A nine-member Constitutional Tribunal reviews the constitutionality of legislation.
The Azores and Madeira Islands have constitutionally mandated autonomous status. A regional autonomy statute promulgated in 1980 established the Government of the Autonomous Region of the Azores; the Government of the Autonomous Region of Madeira operates under a provisional autonomy statute in effect since 1976. Continental Portugal is divided into 18 districts, each headed by a governor appointed by the Minister of Internal Administration.
Current Administration
Socialist Party (PS) Prime Minister Jose Socrates resigned in March 2011 after his minority government’s austerity plan was rejected by the parliament. Rising unemployment and unsustainable public sector deficits led his caretaker government to seek a May 2011 EU/International Monetary Fund bailout agreement. Social Democratic Party (PSD) Prime Minister Pedro Passos Coelho’s government took office following June 5, 2011 parliamentary elections. Since then, the new government has been largely preoccupied with the implementation of broad austerity measures pursuant to the agreement.
Social Democrat Anibal Cavaco Silva, a center-right candidate and former prime minister (1985-1995), won the Portuguese presidential election on January 22, 2006 with 50.6% of the vote, becoming Portugal’s first center-right head of state in 3 decades. He was re-elected on January 23, 2011 with 53% of the vote and was sworn in on March 9, 2011.
U.S. DEPARTMENT OF LABOR ON INDEPENDENT CONTRACTOR CLASSIFICATION
FROM: U.S. DEPARTMENT OF LABOR
Employee Misclassification as Independent Contractors
The misclassification of employees as something other than employees, such as independent contractors, presents a serious problem for affected employees, employers, and to the entire economy. Misclassified employees are often denied access to critical benefits and protections – such as family and medical leave, overtime, minimum wage and unemployment insurance – to which they are entitled. Employee misclassification also generates substantial losses to the Treasury and the Social Security and Medicare funds, as well as to state unemployment insurance and workers compensation funds.
The Department’s Misclassification Initiative, launched under the auspices of Vice President Biden’s Middle Class Task Force, is making great strides in combating this pervasive issue and to restoring these rights to those denied them. In September 2011, Secretary of Labor Hilda L. Solis announced a major step forward with the signing of a Memorandum of Understanding (MOU) between the Department and the Internal Revenue Service (IRS). Under this agreement, the agencies will work together and share information to reduce the incidence of misclassification of employees, to help reduce the tax gap, and to improve compliance with federal labor laws.
Additionally, labor commissioners and other agency leaders representing thirteen states have signed MOUs with the Department’s Wage and Hour Division, and in some cases, with its Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA), Office of Federal Contract Compliance Programs (OFCCP), and the Office of the Solicitor. (See interactive map of participating states). The Department is actively pursuing MOUs with additional states as well.
These MOUs will enable the Department to share information and to coordinate enforcement efforts with participating states in order to level the playing field for law-abiding employers and to ensure that employees receive the protections to which they are entitled under federal and state law. Employers that misclassify their employees may not be paying the proper overtime compensation, FICA and Unemployment Insurances taxes, or workers' compensation premiums.
Select agencies from the 'In Focus' box to learn more about the role of each in this critical initiative. Select a state from the interactive map to view state information.
Employee Misclassification as Independent Contractors
The misclassification of employees as something other than employees, such as independent contractors, presents a serious problem for affected employees, employers, and to the entire economy. Misclassified employees are often denied access to critical benefits and protections – such as family and medical leave, overtime, minimum wage and unemployment insurance – to which they are entitled. Employee misclassification also generates substantial losses to the Treasury and the Social Security and Medicare funds, as well as to state unemployment insurance and workers compensation funds.
The Department’s Misclassification Initiative, launched under the auspices of Vice President Biden’s Middle Class Task Force, is making great strides in combating this pervasive issue and to restoring these rights to those denied them. In September 2011, Secretary of Labor Hilda L. Solis announced a major step forward with the signing of a Memorandum of Understanding (MOU) between the Department and the Internal Revenue Service (IRS). Under this agreement, the agencies will work together and share information to reduce the incidence of misclassification of employees, to help reduce the tax gap, and to improve compliance with federal labor laws.
Additionally, labor commissioners and other agency leaders representing thirteen states have signed MOUs with the Department’s Wage and Hour Division, and in some cases, with its Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA), Office of Federal Contract Compliance Programs (OFCCP), and the Office of the Solicitor. (See interactive map of participating states). The Department is actively pursuing MOUs with additional states as well.
These MOUs will enable the Department to share information and to coordinate enforcement efforts with participating states in order to level the playing field for law-abiding employers and to ensure that employees receive the protections to which they are entitled under federal and state law. Employers that misclassify their employees may not be paying the proper overtime compensation, FICA and Unemployment Insurances taxes, or workers' compensation premiums.
Select agencies from the 'In Focus' box to learn more about the role of each in this critical initiative. Select a state from the interactive map to view state information.
AIRMAN HERO SAVES DROWING GIRL
Air Force Staff Sgt. Robert Proffitt recently pulled a young girl from the ocean after a riptide pulled her out too far at Sullivan's Island, S.C. Proffitt faced another life-saving moment when he saved a co-worker who was choking on a turkey sandwich. U.S. Air Force photo by Airman 1st Class Tom Brading
FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Airman Saves Little Girl at Beach
By Air Force Airman 1st Class Tom Brading
Joint Base Charleston Public Affairs Office
JOINT BASE CHARLESTON, S.C., Aug. 15, 2012 - Air Force Staff Sgt. Robert Proffitt reacted quickly at the beach to save the life of a drowning little girl.
It started out as a beautiful weekend summer day on the ocean at Sullivan's Island, S.C.
Desperate cries for help were echoing faintly over the rolling ocean waves. The pleas were from a 7-year-old girl, pulled out past the breakers by a violent riptide and with every scream her weakened body gave in a little more to the powerful ocean current.
Proffitt, who's assigned to the 373rd Training Squadron here, was nearby enjoying a day at the beach with his wife and children. He was wading far out in the water and heard the girl's cries for help.
"I could see her more than 100 yards from the beach," Proffitt said. "I didn't have time to think about it. I just reacted."
Proffitt swam out to the girl. By the time he reached her, all he could see was her hair swaying effortlessly with the tide. Her body had slipped beneath the water. He pulled her head above water and she took a deep breath, but she had no energy to move.
"Had I arrived shortly after the moment I did, I would have never seen her," Proffitt said.
After grabbing the girl, he looked back toward the beach -- he had never been this far from shore. He couldn't feel the ocean bottom and the girl was clutching to his back as he slowly began paddling toward the beach.
"Every movement was a struggle," Proffitt said. "I had already used so much energy. Just keeping my head above water seemed to be a challenge. However, I kept thinking to myself: 'Do not let her die,' and so I kept fighting."
Proffitt continued fighting until he reached the shore. Once he felt the sand under his feet, he knew he was close enough to yell for help. A group of people brought both Proffitt and the girl safely back onto the beach.
The moment Proffitt was on dry land, he fell to his knees and stared up into the sky.
"It was a miracle," he said.
The little girl was safely returned to her parents.
However, this wasn't the first time Proffitt was challenged with the task of saving someone's life.
Months prior to the beach incident, Proffitt happened to be at the right place at the right time during the lunch hour at work. Air Force Staff Sgt. Michael Semmerling was eating a turkey sandwich when the unthinkable happened.
"I was eating turkey because it's supposed to be healthy," Semmerling said. "But, after I took a bite, I began choking. I couldn't breathe."
Semmerling attempted to cough the turkey up by pounding his chest with his fist, but nothing seemed to work. He ran down the hall, his face turning from red to blue, when he stumbled into Proffitt's office.
"When he came in to my office, I had no idea what was wrong," Proffitt said. "But when I looked at his face, it was shades of blue, red and purple. I knew I had to react."
Without hesitation, Proffitt jumped from his desk and spun Semmerling, a 220-pound man, 180 degrees with ease and began doing the Heimlich maneuver. Proffitt continued monitoring the condition of his friend, and after a few thrusts, the turkey that was stuck in Semmerling's throat shot across the room.
"If it wasn't for Sgt. Proffitt, I wouldn't be here today," Semmerling said. "He is a hero."
Proffitt insists that he isn't a hero.
"I'm no hero," Proffitt said. "I've just been put into situations that required me to react. The Air Force has taught me lifesaving skills, and the importance of reacting quickly."
FROM: U.S. DEPARTMENT OF DEFENSE
Face of Defense: Airman Saves Little Girl at Beach
By Air Force Airman 1st Class Tom Brading
Joint Base Charleston Public Affairs Office
JOINT BASE CHARLESTON, S.C., Aug. 15, 2012 - Air Force Staff Sgt. Robert Proffitt reacted quickly at the beach to save the life of a drowning little girl.
It started out as a beautiful weekend summer day on the ocean at Sullivan's Island, S.C.
Desperate cries for help were echoing faintly over the rolling ocean waves. The pleas were from a 7-year-old girl, pulled out past the breakers by a violent riptide and with every scream her weakened body gave in a little more to the powerful ocean current.
Proffitt, who's assigned to the 373rd Training Squadron here, was nearby enjoying a day at the beach with his wife and children. He was wading far out in the water and heard the girl's cries for help.
"I could see her more than 100 yards from the beach," Proffitt said. "I didn't have time to think about it. I just reacted."
Proffitt swam out to the girl. By the time he reached her, all he could see was her hair swaying effortlessly with the tide. Her body had slipped beneath the water. He pulled her head above water and she took a deep breath, but she had no energy to move.
"Had I arrived shortly after the moment I did, I would have never seen her," Proffitt said.
After grabbing the girl, he looked back toward the beach -- he had never been this far from shore. He couldn't feel the ocean bottom and the girl was clutching to his back as he slowly began paddling toward the beach.
"Every movement was a struggle," Proffitt said. "I had already used so much energy. Just keeping my head above water seemed to be a challenge. However, I kept thinking to myself: 'Do not let her die,' and so I kept fighting."
Proffitt continued fighting until he reached the shore. Once he felt the sand under his feet, he knew he was close enough to yell for help. A group of people brought both Proffitt and the girl safely back onto the beach.
The moment Proffitt was on dry land, he fell to his knees and stared up into the sky.
"It was a miracle," he said.
The little girl was safely returned to her parents.
However, this wasn't the first time Proffitt was challenged with the task of saving someone's life.
Months prior to the beach incident, Proffitt happened to be at the right place at the right time during the lunch hour at work. Air Force Staff Sgt. Michael Semmerling was eating a turkey sandwich when the unthinkable happened.
"I was eating turkey because it's supposed to be healthy," Semmerling said. "But, after I took a bite, I began choking. I couldn't breathe."
Semmerling attempted to cough the turkey up by pounding his chest with his fist, but nothing seemed to work. He ran down the hall, his face turning from red to blue, when he stumbled into Proffitt's office.
"When he came in to my office, I had no idea what was wrong," Proffitt said. "But when I looked at his face, it was shades of blue, red and purple. I knew I had to react."
Without hesitation, Proffitt jumped from his desk and spun Semmerling, a 220-pound man, 180 degrees with ease and began doing the Heimlich maneuver. Proffitt continued monitoring the condition of his friend, and after a few thrusts, the turkey that was stuck in Semmerling's throat shot across the room.
"If it wasn't for Sgt. Proffitt, I wouldn't be here today," Semmerling said. "He is a hero."
Proffitt insists that he isn't a hero.
"I'm no hero," Proffitt said. "I've just been put into situations that required me to react. The Air Force has taught me lifesaving skills, and the importance of reacting quickly."
Wednesday, August 15, 2012
U.S. DEPARTMENT OF DEFENSE AND EARTHQUAKES
Photo Credit: NOAA/Wikikmedia
FROM: U.S. DEPARTMENT OF DEFENSE
Defense Has Vital Role in Catastrophe Planning, Official SaysBy Claudette Roulo
American Forces Press Service
WASHINGTON, Aug. 14, 2012 - The Defense Department makes valuable contributions in U.S. disaster preparedness planning, a senior defense official said today.
At a panel discussion sponsored by the Heritage Foundation, Paul N. Stockton, assistant secretary of defense for homeland defense and Americas' security, addressed the role the Pentagon plays in disaster planning and response.
Thanks to the Federal Emergency Management Agency, Stockton said, he got "a big wake-up call" during a 2011 national exercise that simulated the events surrounding a magnitude 7.7 earthquake in the New Madrid Seismic Zone, which touches on the states of Tennessee, Illinois, Missouri, Arkansas, and Kentucky.
"That scenario would have produced destruction on a scale that would differ from Hurricane Katrina in two important dimensions," he explained. "First of all, on a quantitative scale, we would have had many, many more casualties over a much wider geographic area.
"There's a second dimension that I believe is even more important," he continued. "A seismic event of that scale would produce a long-term loss of power -- a loss of electric power for weeks to months over a multistate region." Such a power loss would result in the cascading failure of critical infrastructure, he said.
Gas stations would be closed, Stockton said. Water would be in short supply, because electric pumps are needed to draw water from aquifers hundreds of feet underground, and urban wildfires would rage through cities, he added.
The Defense Department's challenge is how to better position itself to support civil authorities during disaster response activities, Stockton said. Building resilience against cascading failures of critical infrastructure -- even, as in the case of the electric grid, when it is owned by the private sector -- is essential to mission assurance, he said.
"Our responsibility to the Department of Defense is to ensure that we can still execute the core missions of the department that the president assigns to us, even if critical infrastructure goes down," Stockton said.
It's not a question of if a complex catastrophe will strike, he said, but when.
"We need to continue to improve our ... capacity to provide support to civil authorities when the call comes," Stockton said.
To that end, Stockton pointed to a new complex catastrophe initiative signed by Defense Secretary Leon E. Panetta that would enable DOD to bring all of its capabilities, from all components, to bear in support of civil authorities. The initiative will make defense support of civil authorities faster and more effective in delivering life-saving and life-sustaining requirements, Stockton said.
In addition to the DOD initiative, a presidential policy directive requires revision and addition of national response and recovery plans, Stockton said, noting that the initiatives are intended to streamline disaster planning and disaster recovery.
"It's enormously helpful to us that the administration has led the integration of all of these lines of effort, including recovery, that we knew were important, [and] that we knew where DOD could make important contributions, but we lacked an overarching policy framework," he said.
"It's great when you're in support to be given the framework within which you're going to be able to operate and be able to serve," he added, "and that's what we have today."
FROM: U.S. DEPARTMENT OF DEFENSE
Defense Has Vital Role in Catastrophe Planning, Official SaysBy Claudette Roulo
American Forces Press Service
WASHINGTON, Aug. 14, 2012 - The Defense Department makes valuable contributions in U.S. disaster preparedness planning, a senior defense official said today.
At a panel discussion sponsored by the Heritage Foundation, Paul N. Stockton, assistant secretary of defense for homeland defense and Americas' security, addressed the role the Pentagon plays in disaster planning and response.
Thanks to the Federal Emergency Management Agency, Stockton said, he got "a big wake-up call" during a 2011 national exercise that simulated the events surrounding a magnitude 7.7 earthquake in the New Madrid Seismic Zone, which touches on the states of Tennessee, Illinois, Missouri, Arkansas, and Kentucky.
"That scenario would have produced destruction on a scale that would differ from Hurricane Katrina in two important dimensions," he explained. "First of all, on a quantitative scale, we would have had many, many more casualties over a much wider geographic area.
"There's a second dimension that I believe is even more important," he continued. "A seismic event of that scale would produce a long-term loss of power -- a loss of electric power for weeks to months over a multistate region." Such a power loss would result in the cascading failure of critical infrastructure, he said.
Gas stations would be closed, Stockton said. Water would be in short supply, because electric pumps are needed to draw water from aquifers hundreds of feet underground, and urban wildfires would rage through cities, he added.
The Defense Department's challenge is how to better position itself to support civil authorities during disaster response activities, Stockton said. Building resilience against cascading failures of critical infrastructure -- even, as in the case of the electric grid, when it is owned by the private sector -- is essential to mission assurance, he said.
"Our responsibility to the Department of Defense is to ensure that we can still execute the core missions of the department that the president assigns to us, even if critical infrastructure goes down," Stockton said.
It's not a question of if a complex catastrophe will strike, he said, but when.
"We need to continue to improve our ... capacity to provide support to civil authorities when the call comes," Stockton said.
To that end, Stockton pointed to a new complex catastrophe initiative signed by Defense Secretary Leon E. Panetta that would enable DOD to bring all of its capabilities, from all components, to bear in support of civil authorities. The initiative will make defense support of civil authorities faster and more effective in delivering life-saving and life-sustaining requirements, Stockton said.
In addition to the DOD initiative, a presidential policy directive requires revision and addition of national response and recovery plans, Stockton said, noting that the initiatives are intended to streamline disaster planning and disaster recovery.
"It's enormously helpful to us that the administration has led the integration of all of these lines of effort, including recovery, that we knew were important, [and] that we knew where DOD could make important contributions, but we lacked an overarching policy framework," he said.
"It's great when you're in support to be given the framework within which you're going to be able to operate and be able to serve," he added, "and that's what we have today."
U.S. MILITARY WORKS TO PREVENT AIDS IN BOTSWANA
FROM: U.S. DEPARTMENT OF STATE
U.S. Medics Support Botswana HIV Prevention EffortsBy Donna Miles
American Forces Press Service
THEBEPHATSHWA AIR BASE, Botswana, Aug. 14, 2012 - A U.S. military medical team here for the Southern Accord 12 exercise is helping the Botswana Defense Force confront its country's most pressing health crisis one circumcision surgery at a time.
The U.S. team is working side by side with its military hosts to promote Botswana's national program of education, HIV screening and male circumcision surgeries to stem what's become a national epidemic, explained Army Col. (Dr.) Michael Kelly, an Army Reserve surgeon deployed here from the Army Reserve Medical Command in Washington.
The Botswana Ministry of Health's goal, Kelly said, is to bring the number of new HIV diagnoses to zero by 2016. That's an ambitious plan, in light of an HIV rate that has skyrocketed since the first case of AIDS was diagnosed in Botswana in 1985.
Today, 17.6 percent of the general population is infected with HIV, and the rate continues to climb by 2.2 percent per year, Maj. Mooketsi Ditsela, the Botswana Defense Force's HIV coordinator, told American Forces Press Service. Men ages 30 to 45 suffer the highest infection rates, topping 40 percent, according to Health Ministry statistics.
As the Botswana government adopted an aggressive national prevention strategy, it teamed the Health Ministry with the Botswana Defense Force, which was showing signs of progress in reducing infections within its ranks.
In addition to education about the risks of unprotected sex and multiple partners and the importance of proper condom use, the national program includes a "safe male circumcision" strategy, Ditsela said. Unlike in the United States, circumcision is not a cultural norm in Botswana, Kelly explained. Yet research shows that the simple procedure can reduce HIV infections among males by as much as 60 percent.
So in meetings to plan humanitarian civic assistance projects for Southern Accord 12, Air Force Capt. Francis Obuseh wasn't completely surprised by the Botswanans' request for help in conducting male circumcisions.
Working with a partner-nation military to conduct male circumcisions during those clinics would be a first for the U.S. military, Obuseh said. Few U.S. medical doctors are experienced in the procedure. Kelly, for example, said he hadn't performed one in about 30 years, when he was undergoing his surgery residency.
But as an epidemiologist who grew up in Nigeria and has studied HIV around the African continent, Obuseh welcomed the opportunity to teach U.S. medics new skills, strengthen the partnership between the two militaries' medical teams and to make a valuable contribution to the Botswanan people.
"This is excellent way for them to partner together in an area of great importance that can make a lasting difference," he said.
Obuseh emphasized that the circumcisions were just one part of a comprehensive HIV program for the local villagers, funded in part by the U.S. President's Emergency Plan for AIDS Relief, or PEPFAR, program.
Members of the Botswana Defense Force provide HIV counseling, screening and education about the safe male circumcision procedure. Meanwhile, the U.S. medical personnel are working side by side with them, performing the surgeries. To prepare the U.S. surgeons, nurses and surgical technicians who arrived here earlier this month for Southern Accord 12, Botswana Defense Force medical personnel conducted two days of classes to teach them the techniques.
They put them to practice yesterday for the third medical clinic since they arrived, performing circumcisions on 28 men ranging in age from 14 to 49 not far from the base in the tiny village of Monwane.
Army Spc. Chris Kepler, a medic with the 396th Combat Support Hospital, said he "begged and pleaded" for the chance to serve as circulating nurse for the clinic. He scurried among five operating areas sectioned off within a generator-powered tent, preparing rooms, drawing medications and applying dressings once the surgeries were completed.
"This is a lot of work, but it's exciting to be a part of a humanitarian mission like this," Kepler said. "I feel that we are serving a bigger purpose and getting a chance to give back. ... I wouldn't trade this experience for the world."
Army Spc. Christina Shoemaker, a 396th CSH surgical technician, acknowledged the challenges of working in an austere environment with limited instruments and a steady flow of patients. But just as she knows she is helping to change their lives, she said, her experience here is changing her own.
"This has been a really big influence on me that I will take home," she said, expressing interest in working with HIV-positive patients at a local veterans hospital as a volunteer. "It's a great feeling knowing that we have helped these people," she said.
Army Capt. Julie Karpinski, a registered nurse with the 396th CSH, said she enjoyed learning a new skill while making a contribution she knows will benefit the people of Botswana long after Southern Accord 12 ends.
"If you can't change the fact that HIV is here, at least this procedure is minimizing the transmission rate. And that is huge," she said. "Being a part of it is wonderful."
Southern Accord is a joint, combined training exercise led by U.S. Army Africa to expand capabilities between the U.S. military and Botswana Defense Force and enhance their interoperability. In addition to training activities relevant to peace support operations, it includes engineering projects and four medical and dental clinics in local communities.
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