THE NEW "AIR FORCE NETWORK INTEGRATION CENTER"

FROM:  U.S. AIR FORCE SPACE COMMAND
The ‘New’ Air Force Network Integration Center is focused on the core services of Air Force Network integration, cyber simulation, and network standards, architecture and engineering. (U.S. Air Force graphic by Travis Nuckolls) 

'New AFNIC' offers cyber advantage 
by Katherine Kebisek
Air Force Network Integration Center
6/26/2012 - SCOTT AIR FORCE BASE, Ill. (AFNS) -- "Cyber Innovation. Mission Success." This is how the "New" Air Force Network Integration Center officials sum up what their organization provides to the Air Force and other mission partners.

It's a phrase representing a new direction for a not-so-new organization. AFNIC, established from what was formerly the Air Force Communications Agency, stood up in 2009 as a direct reporting unit to Air Force Space Command. The center's roots trace back even farther with the establishment of the Army Airways Communications Service in 1938.

The term "New AFNIC" emerged in the past several months as the center's personnel implemented a massive restructure of the organization based on recommendations from a 2011 Headquarters AFSPC study. AFNIC officials requested the study after being realigned to AFSPC.

"We had a very broad mission that included everything from standards and architecture, to writing Air Force policy, even doing some operations work," said Brad Ashley, AFNIC's technical director. The restructure aligned some command (i.e., organize, train and equip) functions to AFSPC, network operations and maintenance functions to 24th Air Force and network integration to AFNIC.

With the restructure complete, AFNIC officials are focused on providing cyber solutions for Air Force Network integration, cyber simulation and network standards, architecture and engineering. Through these core services, the center establishes what the Air Force network looks like and determines how to get cyber capabilities integrated into the network, helping Airmen achieve their mission with the "power of cyberspace."

"Almost everything we do in the Air Force today relies on the network," Ashley said. "If the combatant commander and the warfighter can't leverage the network for their unique mission set, then we're not getting the full power of cyberspace."

Knowing what the network looks like, and what it will look like in the future, is important. There have been instances where major information technology systems were built according to how the network was structured at the beginning of the project, but when it came time to connect to the Air Force network, sometimes years later, the systems didn't work as designed because the network architecture had evolved. AFNIC aims to prevent those situations.

"When we're engaged early in a project we can help identify potential issues and provide guidance to ensure systems and applications are developed compatibly with the AFNet," Ashley said. "The end result is a capability that works as intended, a secure network, and an empowered Airman ... that's the advantage we provide."

Fueling new AFNIC is a renewed emphasis on innovation, an ethos AFNIC's commander is passionate about.

"Innovation is the true fuel for our national economy and our nation's military prowess," said Col. Riz Ali, the AFNIC commander. "Innovation is more than just new technology; it's finding new ways to communicate, collaborate and do business. This mindset is very important to have and foster ... it's what drives progress."

As part of this effort, the center has made it a priority to be more transparent and improve communications. Personnel now regularly use tools like blogs, discussion forums and online working groups to connect and exchange ideas with mission partners around the world.

AFNIC also recently launched an internal program through which its personnel can submit and pursue ideas to improve center operations, the Air Force enterprise, or both.

"The ultimate goal is to introduce operationally viable, innovative cyber solutions to our Airmen," Ali said. "We are faced with serious challenges in cyberspace. The domain and the threats to it are constantly changing. We can't stay a step ahead unless we're thinking outside the box."

Innovation, combined with the decades of experience, technical expertise and commitment to customer service AFNIC personnel possess are what Ali said provide mission partners an advantage.

"Our cyber professionals have the knowledge, skills and innovative outlook to tackle even the most complex, demanding technical issues," Ali said. "We do what it takes to provide high-quality, decisive and secure cyber solutions ... an advantage that positions our partners for mission success."

OWNER OF RESEARCH FIRM CHARGED BY SEC WITH INSIDER TRADING

Photo Credit:  Wikimedia. 
FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., June 26, 2012 — The Securities and Exchange Commission today charged Tai Nguyen, the owner of the California-based equity research firm Insight Research, with insider trading. The charges stem from the SEC’s ongoing investigation of insider trading involving so-called “expert networks” that provide specialized information to investment firms.

The SEC alleges that from 2006 through 2009, Nguyen frequently traded in the securities of Abaxis, Inc. based on inside information he received from a close relative employed at Abaxis. Nguyen repeatedly traded for himself in advance of the company’s quarterly earnings announcements while in possession of key data in those announcements, reaping tens of thousands of dollars in illicit profits. Nguyen also passed that same information to hedge fund clients of Insight Research, who used the inside information to make millions of dollars in profits from trading Abaxis securities.

“Nguyen claimed expertise in researching and analyzing technology companies, but his special edge was his willingness to break the law,” said Sanjay Wadhwa, Associate Director of the SEC’s New York Regional Office and Deputy Chief of the Market Abuse Unit. “Like many other so-called ‘experts’ who trafficked in inside information, Nguyen now finds himself the subject of an enforcement action.”

The SEC has charged 23 defendants in enforcement actions arising out of its expert networks investigation, which has uncovered widespread insider trading at several hedge funds and other investment advisory firms. The insider trading alleged by the SEC has yielded illicit gains of more than $117 million, chiefly in shares of technology companies, including Apple, Dell, Fairchild Semiconductor, and Marvell Technology.

According to the SEC’s complaint, filed in federal court in Manhattan, Nguyen regularly obtained material nonpublic information about Abaxis Inc.’s quarterly earnings — including revenues, gross profit margins and earnings per share — from a relative who worked in Abaxis’s finance department. Nguyen used the information to trade Abaxis securities in his own account and reaped approximately $145,000 in illicit trading profits from 2006 through 2009.

In addition to trading in his own account, the SEC alleges that Nguyen passed the inside information to New York-based Barai Capital Management and Boston-based Sonar Capital Management, both of which were clients of Nguyen’s firm, Insight Research. The two hedge fund managers — who collectively were paying Insight Research tens of thousands of dollars each month — traded Abaxis securities based on the inside information that Nguyen provided and reaped more than $7.2 million in illicit gains for their hedge funds.

The SEC’s complaint charges Nguyen with violating the anti-fraud provisions of U.S. securities laws and seeks a final judgment ordering him to disgorge his ill-gotten gains, with interest, and pay financial penalties, and permanently barring him from future violations.

The SEC’s investigation is continuing. Daniel Marcus and Joseph Sansone, members of the SEC’s Market Abuse Unit in New York, conducted the investigation, along with Matthew Watkins, Neil Hendelman, Diego Brucculeri, and James D’Avino of the New York Regional Office. The SEC thanks the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation for their assistance in the matter.

VESTA ASTEROID CRATER CLOSEUP

FROM: NASA
This colorized image from NASA’s Dawn mission shows temperature variations at Tarpeia Crater, near the south pole of the giant asteroid Vesta. Obtained by the visible and infrared mapping spectrometer, data show the warmest areas in white, measuring about minus 10 degrees Fahrenheit (minus 23 degrees Celsius). The dark areas are the coldest, with temperatures at or below minus 150 degrees Fahrenheit (minus 100 degrees Celsius). The variations in the red shading indicate the intensity of the emitted light in the 5-micron wavelength, which is indicative of the surface temperature. The visible and infrared mapping spectrometer obtained the images during Dawn’s low-altitude mapping orbit (130 miles or 210 kilometers in altitude) on Feb. 5, 2012. Image Credit: NASA/JPL-Caltech/UCLA/INAF

WATCH OUT FOR THE SUN

FROM:  U.S. DEPARTMENT OF DEFENSE ARMED WITH SCIENCE
Senior Airman Erin O’Connell, a solar analyst, uses a white light board to observe the size of solar spots on the sun at the Holloman Air Force Base, N.M., solar observatory. (U.S. Air Force photo by Airman 1st Class Daniel E. Liddicoet/Released) 

Written on JUNE 20, 2012 AT 7:44 AM by JTOZER
Sunrise To Sunset: Observatory Looks To The Sky
The sun.
While it supplies life and energy for the people and plants that call the Earth home, also has the power to seriously disrupt humanity’s way of life.
Periodically, the sun releases massive quantities of solar matter and electromagnetic radiation into space, known as a coronal mass ejection, which can cause a geomagnetic storm that could potentially disrupt radio transmissions, damage satellites, and lead to long-lasting power outages.

To help Holloman AFB combat negative effectsCMEs could have on the base’s mission, the solar analysts of the Detachment 4, 2nd Weather Squadron Solar Observatory here monitor the sun and its activities daily.

“We analyze the sun for features that may affect communications systems, satellites, and aircraft that are flying in higher elevations,” said Senior Airman Erin O’Connell, Det. 4, 2nd WS solar analyst. “Right now, the sun is very active and has been since early last year.”

The sun is active, O’Connell said, because we are currently in the solar maximum or solar max, which is the period of greatest solar activity in the sun’s solar cycle. During the solar max, large numbers of sunspots appear because the sun’s magnetic field lines are the most distorted due to the magnetic field on the solar equator rotating at a slightly faster pace than at the solar poles.

“If you imagine a bell curve, we are ramping up to a solar max right now, so we’re seeing a lot of flares and not only are they increasing in frequency, but the intensity of the flares are also increasing,” said Master Sgt. Shane Siebert, Det. 4, 2nd WS detachment chief. “The solar max and solar min, or solar minimum, cycles through every 11 years. Our solar min was in 2010, so just to put it in perspective, from 2010 to 2011 we saw a 300 percent increase in solar activity. We can expect the sun to stay active for the next three years, and then slowly decline for the next eight leading back to the solar min.”
Because solar activity can cause navigation systems anomalies, targeting systems errors, and disrupt the base’s communication assets, the solar analysts monitor the sun from sunrise to sunset.

“We have a very complex telescope that views the sun and feeds information to all of our computer systems, which enables us to analyze the sun and look for the features that are important to military and civilian customers that are impacted by space,” Siebert said. “As soon as we see those features, we compose a warning and send it to the Space Weather Prediction Center and the Space Weather Operations Center, and they disseminate the information to the decision makers and customers.”

Because the effects of a solar flare can be felt on Earth in eight minutes, the solar analysts must send the warning out in two minutes.
“The telescope puts live images on the screen, and when an event-level flare (flare that is very intense and very large, that emits high energy particles into space) happens, the system sounds an alarm and that’s when the two-minute warning comes into effect,” O’Connell said. “The telescope images the sun in the light of Hydrogen-alpha. This wavelength allows us to really see the solar activity, basically as its happening. We also can image the sun in white light, which shows sunspots on the sun’s surface or photosphere.”
Even when they’re not responding to event-level solar flares, the analysts still must monitor the sun’s activity very closely.

“Over the course of the day, we issue messages to the space community every three hours to let them know what kind of activity is occurring on the sun,” Siebert said. “In addition to this, the solar analysts also perform a sun spot drawing every day and forward that information to the Space Weather Prediction Center, so the forecasters can predict the likelihood of large flares.”

Even in their own Air Force Specialty Code, the solar analysts have a very unique mission, Siebert said.

“We’re all weather forecasters and in our career field there are 3,000 enlisted people, but in the solar community doing this job here, there are only 25 of us,” he said. “This is a very unique mission because there are only five different Air Force sites across the world doing this mission. They’re set up geographically in Australia, Italy, Massachusetts, Hawaii, and here, and there are usually always two observatories monitoring the sun at any given time.”

With event-level flares occurring daily, the solar analysts’ margin of error is ever decreasing.

“If we fail our two-minute warning, we set everyone else back,” Siebert said. “A lot is riding on us to do the job correctly – $104 billion in DoD assets can be damaged. During the true solar max, which we’re ramping into, the events could be happening several times an hour, so we’ll get even lot busier.”

Even with the increase in work load, Siebert is confident in the analysts’ abilities.
“When I first got here, there wasn’t a whole lot of activity going on,” Siebert said. “There would be days when there weren’t any flares. Now, we could face 20 flares a day, but we’re ready to respond and provide that information so that the customers at Holloman and throughout the DoD can be aware of when there’s going to be operational impacts to their missions.”

By Airman 1st Class Siuta B. Ika
49th Wing Public Affairs

HALL OF HONOR MONUMENTAL MAUSOLEUM IN TURKEY

FROM:  U.S. NAVY
Chief of Naval Operations (CNO) Adm. Jonathan Greenert salutes a wreath he and Turkish navy honor guard sailors ceremoniously placed in the Hall of Honor at the Anitkabir, monumental mausoleum of Kemal Ataturk. Greenert took part in the wreath laying ceremony while in Turkey to talk with state and military leaders about current and future cooperative efforts. U.S. Navy photo by Mass Communication Specialist 1st Class Peter D. Lawlor (Released) 120620-N-WL435-114

CFTC ORDERS BARCLAYS TO PAY $200 MILLION FOR INTEREST RATE MANIPULATION SCHEME

FROM:  COMMODITY FUTURES TRADING COMMISSION
CFTC Orders Barclays to pay $200 Million Penalty for Attempted Manipulation of and False Reporting concerning LIBOR and Euribor Benchmark Interest Rates.

The Order finds that Barclays attempted to manipulate interest rates and made related false reports to benefit its derivatives trading positions. The Order also finds that Barclays made false LIBOR reports at the direction of members of senior management to protect its reputation during the global financial crisis.

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) issued an Order today filing and settling charges against Barclays PLC, Barclays Bank PLC (Barclays Bank) and Barclays Capital Inc.(Barclays Capital) (collectively Barclays or the Bank). The Order finds that Barclays attempted to manipulate and made false reports concerning two global benchmark interest rates, LIBOR and Euribor, on numerous occasions and sometimes on a daily basis over a four-year period, commencing as early as 2005.

According to the Order, Barclays, through its traders and employees responsible for determining the Bank’s LIBOR and Euribor submissions (submitters), attempted to manipulate and made false reports concerning both benchmark interest rates to benefit the Bank’s derivatives trading positions by either increasing its profits or minimizing its losses. This conduct occurred regularly and was pervasive. In addition, the attempts to manipulate included Barclays’ traders asking other banks to assist in manipulating Euribor, as well as Barclays aiding attempts by other banks to manipulate U.S. Dollar LIBOR and Euribor.

The Order also finds that throughout the global financial crisis in late August 2007 through early 2009, as a result of instructions from Barclays’ senior management, the Bank routinely made artificially low LIBOR submissions to protect Barclays’ reputation from negative market and media perceptions concerning Barclays’ financial condition.

The CFTC Order requires Barclays to pay a $200 million civil monetary penalty, cease and desist from further violations as charged, and take specified steps, such as making the determinations of benchmark submissions transaction-focused (as set forth in the Order), to ensure the integrity and reliability of its LIBOR and Euribor submissions and improve related internal controls.

“The American public and our markets rely upon the integrity of benchmark interest rates like LIBOR and Euribor because they form the basis for hundreds of trillions of dollars of transactions and affect nearly every corner of the global economy,” said David Meister, the CFTC’s Director of Enforcement. “Banks that contribute information to those benchmarks must do so honestly. When a bank acts in its own self-interest by attempting to manipulate these rates for profit, or by submitting false reports that result from senior management orders to lower submissions to guard the bank’s reputation, the integrity of benchmark interest rates is undermined. The CFTC launched this investigation to protect the markets and the public from such illegal conduct, and today’s action demonstrates that we will bring the full force of our authority to bear as we carry out that mission.”
LIBOR and Euribor

LIBOR – the London Interbank Offered Rate – is among the most important benchmark interest rates in the world’s economy, and is a key rate in the United States. LIBOR is based on rate submissions from a relatively small and select panel of major banks, including Barclays, and is calculated and published daily for several different currencies by the British Banker’s Association (BBA). Each panel bank’s submission is also made public, and the market can therefore see each bank’s independent assessment of its own borrowing costs. LIBOR is supposed to reflect the cost of borrowing unsecured funds in the London interbank market.

Euribor, which is calculated in a similar fashion by the European Banking Federation (EBF), is another globally important rate that measures the cost of borrowing in the Economic and Monetary Union of the European Union.

LIBOR impacts enormous volumes of swaps and futures contracts, commercial and personal consumer loans, home mortgages and other transactions. For example, U.S. Dollar LIBOR is the basis for the settlement of the three-month Eurodollar futures contract traded on the Chicago Mercantile Exchange (CME), which had a traded volume in 2011 with a notional value exceeding $564 trillion. In addition, according to the BBA, swaps with a notional value of approximately $350 trillion and loans amounting to $10 trillion are indexed to LIBOR. Euribor is also used internationally in derivatives contracts. In 2011, over-the-counter interest rate derivatives referenced to Euro rates had a notional value in excess of $220 trillion, according to the Bank for International Settlements. LIBOR and Euribor are relied upon by countless large and small businesses and individuals who trust that the rates are derived from candid and reliable submissions made by each of the banks on the panels.

Barclays’ Unlawful Conduct to Benefit Derivatives Trading Positions
As the Order shows, Barclays, in pursuit of its own self-interest, disregarded the fundamental principle that LIBOR and Euribor are supposed to reflect the costs of borrowing funds in certain markets. Barclays’ traders located at least in New York, London and Tokyo asked Barclays’ submitters to submit particular rates to benefit their derivatives trading positions, such as swaps or futures positions, which were priced on LIBOR and Euribor. Barclays’ traders made these unlawful requests routinely, and sometimes daily, from at least mid-2005 through at least the fall of 2007, and sporadically thereafter into 2009. The Order relates that, for example, one trader stated in an email to a submitter: “We have another big fixing tom[orrow] and with the market move I was hoping we could set [certain] Libors as high as possible.”

In addition, certain Barclays Euro swaps traders, led at the time by a senior trader, coordinated with and aided and abetted traders at other banks in each other’s attempts to manipulate Euribor, even scheming to impact Euribor on key standardized dates when many derivatives contracts are settled or reset.

The traders’ requests were frequently accepted by Barclays’ submitters, who emailed responses such as “always happy to help,” “for you, anything,” or “Done…for you big boy,” resulting in false submissions by Barclays to the BBA and EBF. The traders and submitters also engaged in similar conduct on fewer occasions with respect to Yen and Sterling LIBOR.

Barclays’ Unlawful Conduct at the Direction of Senior Management
The CFTC Order also finds that Barclays, acting at the direction of senior management, engaged in other serious unlawful conduct concerning LIBOR. In late 2007, Barclays was the subject of negative press reports raising questions such as, “So what the hell is happening at Barclays and its Barclays Capital securities unit that is prompting its peers to charge it premium interest in the money market?” Such negative media speculation caused significant concern within Barclays and was discussed among high levels of management within Barclays Bank. As a result, certain senior managers within Barclays instructed the U.S. Dollar LIBOR submitters and their supervisor to lower Barclays’ LIBOR submissions to be closer to the rates submitted by other banks and not so high as to attract media attention.

According to the Order, senior managers even coined the phrase “head above the parapet” to describe high LIBOR submissions relative to other banks. Barclays’ LIBOR submitters were told not to submit at levels where Barclays was “sticking its head above the parapet.” The directive was intended to fend off negative public perceptions about Barclays’ financial condition arising from its high LIBOR submissions relative to the submissions of other panel banks, which Barclays believed were too low given the market conditions.
Despite concerns being raised by the submitters that Barclays and other banks were, for example, “being dishonest by definition” and that they were submitting “patently false” rates, the submitters followed the directive and submitted artificially lower rates. The senior management directive for low U.S. Dollar LIBOR submissions occurred on a regular basis during the global financial crisis from August 2007 through early 2009, and, at limited times, for Yen and Sterling LIBOR during the same period. As the U.S. Dollar senior submitter said in October 2008 to his supervisor at the time, “following on from my conversation with you I will reluctantly, gradually and artificially get my libors in line with the rest of the contributors as requested. I disagree with this approach as you are well aware. I will be contributing rates which are nowhere near the clearing rates for unsecured cash and therefore will not be posting honest prices.”

Barclays’ Obligations to Ensure Integrity and Reliability of Benchmark Interest Rates
In addition to the $200 million penalty, the CFTC Order requires Barclays to implement measures to ensure that its submissions are transaction-focused, based upon a rigorous and honest assessment of information and not influenced by conflicts of interest. See pages 31-44 of the CFTC’s Order. Among other things, the Order requires Barclays to:
Make its submissions based on certain specified factors, with Barclays’ transactions being given the greatest weight, subject to certain specified adjustments and considerations;
Implement firewalls to prevent improper communications including between traders and submitters;
Prepare and retain certain documents concerning submissions, and retain relevant communications;
Implement auditing, monitoring and training measures concerning its submissions and related processes;
Make regular reports to the CFTC concerning compliance with the terms of the Order;
Use best efforts to encourage the development of rigorous standards for benchmark interest rates; and
Continue to cooperate with the CFTC.
* * * *
The Order recognizes Barclays’ significant cooperation with the CFTC during the investigation of this matter.
In a related matter, as part of an agreement with the Fraud Section of the U.S. Justice Department’s Criminal Division, Barclays agreed to pay a $160 million penalty and to continue to cooperate with the Department. Furthermore, the United Kingdom’s Financial Services Authority (FSA) issued a Final Notice regarding its enforcement action against Barclays Bank PLC, and has imposed a penalty of £59.5 million against the Bank.

The CFTC thanks the FSA, the U.S. Department of Justice, the Washington Field Office of the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission for their assistance in the CFTC’s investigation.

CFTC Division of Enforcement staff members responsible for this case are Anne M. Termine, Stephen T. Tsai, Maura M. Viehmeyer, Brian G. Mulherin, Gretchen L. Lowe and Vincent A. McGonagle, with assistance from Philip P. Tumminio, Rishi K. Gupta, Russell Battaglia, Jeremy Cusimano, Elizabeth Padgett, Terry Mayo, Jason T. Wright, Aimée Latimer-Zayets, Timothy M. Kirby, Jonathan K. Huth, Susan A. Berkowitz and staff from the Division of Market Oversight and Office of the Chief Economist.

ESA Portal - Italy - L’Emilia Romagna

ESA Portal - Italy - L’Emilia Romagna

U.S. EDUCATION SECRETARY DUNCAN WANTS COLLEGES TO BE MORE TRANSPARENT REGARDING COST

FROM:  U.S. DEPARTMENT OF EDUCATION
Education Secretary Duncan Calls on Colleges to be More Transparent about Cost of College, Empower Families to Make Smart Investments

U.S. Secretary of Education Arne Duncan called on colleges and universities across the country today to provide families with the information they need to make a smart investment in higher education. This call to action follows the commitment that 10 institutional leaders made during a White House meeting with Vice President Biden and Secretary Duncan earlier this month to provide key financial information to incoming students starting next year.

Secretary Duncan’s remarks were part of a national convocation hosted by the Association of Public and Land Grant Universities. In addition to calling for greater transparency, he challenged institutions to control costs and better support students in order to keep prices down and help boost college completion rates.

“Today, I want to challenge every college and university in the country to hold themselves accountable to higher standards of transparency as one step toward our collective goal of meeting the President’s 2020 goal and producing the highest percentage of college graduates in the world,” Secretary Duncan said. “Having easy-to-understand information will help students and families make smarter decisions about higher education. We don’t want students and families taking on more debt than they need. We don’t want them defaulting. Worst of all, we don’t want them deciding they cannot afford college.”
During his remarks, Secretary Duncan asked colleges and universities to commit to providing students and their families with the clear, useful information they need to make the best decisions about where to enroll and what kind of financial commitment to make for their long-term investment in higher education. These institutions would join the previous 10 colleges and universities in providing the following information to all incoming students as part of their financial aid package, beginning with those applying for the 2013-2014 school year:
How much one year of college will cost;
Financial aid options to pay this cost, with a clear differentiation between grants and scholarships, which do not have to be repaid, and loans, which do;
Net costs after grants and scholarships are taken into account;
Estimated monthly payments for the federal student loans the student would likely owe after graduation; and
Vital information about student results, including comparative information about the rates at which students enroll from one year to the next, graduate, and repay their loans without defaulting on their obligations.
A key piece of President Obama’s plan to make college more affordable is improved transparency of college costs and value. Too often, students and families face confusion when evaluating financial aid packages, some of which do not clearly differentiate loans from grants, nor distinguish private versus federal loans, making it difficult to compare aid offers.

To make it easier for institutions to provide transparent information to students, the U.S. Department of Education, in partnership with the Consumer Financial Protection Bureau, gathered input from students, families, and the higher education community to develop a Financial Aid Shopping Sheet, which colleges and universities are encouraged to adopt in order to provide students with clear information about the type and amount of aid they qualify for and allow students to easily compare aid packages offered by different institutions. This Shopping Sheet – a model of what a good financial aid award letter would look like – will be available in the coming weeks. Institutions that are interested in finding out how they can adopt the Shopping Sheet and improve their transparency efforts can get more information by emailingHigherEducation@who.eop.gov.

ARMY SERGEANT AND ASSOCIATE CONVICTED FOR PARTS IN BRIBERY/MONEY LAUNDERING SCHEME REGARDING DEFENSE CONTRACTS

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, June 26, 2012
Army Sergeant and Associate Convicted on All Counts for Roles in Bribery and Money Laundering Scheme Related to Defense Contracts to Support Iraq WarTo Date, 19 Individuals Have Pleaded Guilty or Been Convicted at Trial in Ongoing Corruption Investigation

WASHINGTON – A federal jury in Elkins, W. Va., convicted Richard Evick, a U.S. Army Sergeant First Class and Non-Commissioned Officer in charge of contracting at a U.S. military base in Kuwait, and his associate, Crystal Martin, of all counts with which they were charged in connection with a bribery and money laundering scheme related to defense contracts awarded in support of Operation Iraqi Freedom, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II for the Northern District of West Virginia.

Evick was found guilty yesterday of one count of bribery conspiracy, two counts of bribery, one count of money laundering conspiracy, six counts of money laundering and one count of obstructing an agency proceeding.  Martin was found guilty of one count of bribery conspiracy, one count of money laundering conspiracy and four counts of money laundering.

“As the highest ranking enlisted officer in the U.S. Army’s contracting office at Camp Arifjan in Kuwait, Mr. Evick had a special duty to strike deals in the best interests of the American people,” said Assistant Attorney General Breuer.  “Instead, he steered business to dirty contractors in exchange for tens of thousands of dollars in cash and other items.  Mr. Evick, Ms. Martin and their co-conspirators defrauded the government they had sworn to serve.  To date, our investigation has led to the convictions of 19 individuals, and we will continue aggressively to pursue corruption and procurement fraud wherever we find it.”

“The investigation and prosecution of public corruption cases continues to be a top priority for the Department of Justice in West Virginia and throughout the country,” said U.S. Attorney Ihlenfeld.  “Fortunately the vast majority of our public officials are honest and trustworthy, but those who are not will be held accountable.”

Evick served as the U.S. Army’s Non-Commission Officer in charge of contracting at Camp Arifjan between 2005 and 2006.  In that capacity, Evick had the authority to arrange for the award of valuable contracts to supply the U.S. military with bottled water and catering services, maintain Army barracks and install security barriers, among other things.

Evidence presented at trial demonstrated that Evick and his co-conspirators manipulated the contracting process in several ways, including disclosing confidential information about the U.S. military’s plans to procure goods and services and accepting fake bids.  In this manner, Evick and two of his fellow contacting officials, former Army Majors James Momon and Chris Murray, steered nearly $24 million worth of contracting business to certain contractors.  In exchange, these contractors paid Evick more than $170,000 in bribes, a free New Year’s Eve trip to Dubai and parties.

Among the persons who paid Evick these bribes was Wajdi Birjas, a civilian U.S. government employee at Camp Arifjan who had a secret interest in a military contractor operating in Kuwait.  Birjas testified that he provided phony bids to Evick from purportedly independent contractors who were, in reality, controlled by the same individuals.  The evidence showed that Evick used these bids to create the false impression that the contracts were awarded according to Army contracting rules providing for a competitive bidding process.  Birjas also testified that he had a hidden safe at his villa where Momon stored more than $800,000 in bribe money and which Evick used to exchange a large amount of Kuwaiti currency for U.S. dollars.

According to the evidence, Evick gave much of his bribe money to Martin, who had a concession from the Army and Air force Exchange Service to sell merchandise at Camp Arifjan, which was primarily a cash business.  Evick and Martin then transferred tens of thousands of dollars worth of Evick’s bribe money to the U.S. into the hands of Evick’s wife and his girlfriend.  The evidence showed that, in order to conceal the fact that this was bribe money, Evick and Martin converted the money into Western Union wires, money orders, cashiers checks and personal checks.  Evick and Martin also smuggled cash into the U.S. on their persons, Martin often taking military transport flights to avoid customs screening.  Evick used his bribe money, among other things, to purchase and construct a residence on three and one half acres in Parsons, W. Va., and to buy a pickup truck.

The evidence showed that Evick and Martin also participated in a scheme to smuggle $250,000 of bribe money belonging to Momon into the U.S.  Momon testified about a summer 2006 meeting at Kuwait international airport with Evick and Martin, at which Martin described how she was laundering Evick’s bribe money and offered to provide the same service for Momon.  According to evidence presented at trial, Evick offered to bury Momon’s money on Evick’s West Virginia property.  When law enforcement agents interviewed Evick several months later about corruption at Camp Arifjan, Evick falsely stated that he did not know the contractor from whom evidence showed he had received a $150,000 bribe, among other things.

“Contingency contracting provides an opportunity for honest contractors to excel but still runs the inherent risk of fraudulent activity that plagues all government contracting,” said Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service.  “While our service members and defense civilians expect the best from their supporting contracts, we root out the worst and, working alongside our law enforcement partners, continue to aggressively bring those who defraud our nation’s warfighters to justice.”
“We are very pleased with the guilty verdicts in this case,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.  “It is a warning to anyone, in or out of uniform, who attempts to defraud the Army or the government that we will investigate credible allegations and bring those responsible to justice.  Our agents have done a remarkable job investigating this case along with our fellow law enforcement partners and the DOJ.”

“The fact that a jury convicted these two individuals on all 11 counts stands as a powerful reminder that  those who break the public trust to engage in bribery and money laundering with funds meant for the reconstruction of Iraq will face the full force of the law,” said Stuart W. Bowen, Special Inspector General for Iraq Reconstruction (SIGIR).  “SIGIR and those who work with us will continue work on those cases still open against those involved in illegal acts.”

Evick and Martin face a maximum sentence of five years in prison for bribery conspiracy, 20 years in prison for money laundering conspiracy and 20 years in prison for each count of money laundering.  Evick also faces a maximum of 15 years in prison for each count of bribery, five years for obstructing an agency proceeding and the forfeiture of the proceeds of his bribe scheme, which includes his West Virginia residence.  They also face maximum fines of $250,000 per count.  They will be sentenced by Chief U.S. District Judge John Preston Bailey.  Their sentencing date has not yet been scheduled.

The case against Evick and Martin arose from a corruption probe focusing on the contracting office at Camp Arifjan, a U.S. military base in Kuwait.  As a result of this investigation, 19 individuals, including Evick and Martin, have pleaded guilty or been found guilty at trial for their roles in the scheme.  Momon pleaded guilty in August 2009 to receiving approximately $1.6 million in bribes and agreed to pay $5.7 million in restitution, and he is awaiting sentencing.  Murray pleaded guilty in January 2009 for his role in the scheme and was sentenced in December 2009 to 57 months in prison.  Birjas pleaded guilty in September 2010 and he is awaiting sentencing.

The case is being prosecuted by Trial Attorneys Peter C. Sprung and Eric G. Olshan of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Andrew R. Cogar of the U.S. Attorney’s Office for the Northern District of West Virginia.  The case is being investigated by special agents of the Defense Criminal Investigative Service, the Army Criminal Investigation Command Division, Internal Revenue Service-Criminal Investigation, the FBI and SIGIR.

WISCONSIN LIVESTOCK COMPANY SETTLES COMPLAINT REGARDING IMPROPER MEDICATION PRACTICES

Photo Credit:  Wikimedia/USDA
FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, June 26, 2012
US Settles Complaint Against Wisconsin Livestock Company for Improper Medication Practices Government Asserts That Adulterated Food Was Introduced into Interstate Commerce
The United States has filed suit in the U.S. District Court for the Eastern District of Wisconsin against Dan Nolan Livestock LLC. and its owner Daniel W. Nolan to block them from violating the Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food.  The Justice Department filed the suit on behalf of the Food and Drug Administration (FDA).

The defendants have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the FDCA.   The proposed consent decree has been filed with the court and is awaiting judicial approval.

The government’s action results from a series of inspections of the Bonduel, Wis.-based livestock company, which revealed, according to the FDA, that the defendants failed to maintain treatment and sales records for their animals and that, in the previous year, they sold an animal for slaughter containing excessive and illegal antibiotic drug residues in its edible tissues.   The complaint also alleges that the defendants have dispensed prescription new animal drugs on more than one occasion without a lawful order from a veterinarian.

The complaint states that excess drug residues in animal tissues can harm consumers by causing allergic reactions and by contributing to the spread of antibiotic-resistant bacteria.   Both FDA and the U.S. Department of Agriculture (USDA) have warned the defendants that their conduct violates the FDCA.   Nonetheless, according to the complaint, the most recent FDA inspection, concluded in November 2011, documented the continuing nature of the defendants’ violations, and established their responsibility for the illegal drug residues found in edible tissue sampled by the USDA in January 2011.

The government’s complaint asserts that the defendants have introduced adulterated food into interstate commerce, caused new animal drugs to become misbranded and adulterated while held for sale after shipment in interstate commerce, and failed to comply with statutory and regulatory requirements concerning the extra-label use of new animal drugs.   The consent decree, to which the defendants agreed, requires that Dan Nolan Livestock cease operations and be allowed to resume its business only after it has documented to the FDA’s satisfaction that it has corrected all of the problems observed by the agency’s inspections and has instituted procedures to ensure that there will be no recurrence of those or any other violations that could present a threat to the consuming public.

“When farms fail to maintain appropriate controls concerning the medication of food-producing animals, they jeopardize the public health,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.   “Today’s filing is intended to make certain that Dan Nolan Livestock will put in place the procedures and documentation necessary to help ensure that consumers receive safe foods for their family table.”

Mr. Delery thanked the FDA for referring the case to the Department of Justice.   Andrew Clark, of the Consumer Protection Branch, prosecuted the case together with Sonia Nath of FDA’s Office of the General Counsel.   The U.S. Attorney’s Office for the Eastern District of Wisconsin joined in the prosecution of the matter.

INTERNATIONAL SECURITY ASSISTANCE FORCE JOINT COMMAND NEWS

Photo Credit:  U.S. Air Force
FROM:  AMERICAN FORCES PRESS SERVICE
Combined Force Seizes Explosives, Weapons Caches
Compiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, June 26, 2012 – An Afghan-led, coalition-supported force seized two caches containing chemicals, weapons and improvised explosive device-making components in the Ab Band district of Ghazni province yesterday, military officials reported.

The first cache contained more than 3,300 pounds of chemicals used in the production of homemade explosives, officials said.

The second cache, officials said, contained 120 IED electronic control devices, 30 anti-personnel mines, and five IEDs. All of the materials were destroyed.

In other Afghanistan operations yesterday:
-- A combined force detained several suspected insurgents during a search for a senior Taliban leader in the Kajaki district of Helmand province. The wanted insurgent leader plans, directs and executes attacks against Afghan and coalition forces.

-- A combined force-requested airstrike killed the insurgent leader, Musa -- also known as Baitullah and Qalam -- in the Waygal district of Nuristan province. Musa was associated with both al-Qaida and Taliban forces operating in the Waygal district.

-- A combined force detained one suspect carrying IED-making material in Ghazni province’s Andar district.

-- A combined force detained one suspect in Khowst province’s Khowst district.
-- A combined force detained three suspects in Logar province’s Muhammad Aghah district.

-- A combined force killed four insurgents during a firefight in the Giyan district of Paktika province.

-- Coalition forces killed one insurgent during a firefight engagement in Paktika province’s Bermal district.

-- A combined force discovered a cache containing small-arms ammunition in the Gardez district of Paktika province.

-- A combined force detained one insurgent in Paktika province’s Gardez district.
-- A combined force killed two insurgents during a firefight in Wardak province’s Sayyidabad district.

SECRETARY OF STATE CLINTON AT CLIMATE CLEAN AIR COALITION AND GREEN EMBASSY EVENT

FROM:  U.S. STATE DEPARTMENT
Remarks at the Climate Clean Air Coalition and Green Embassy Event
Remarks Hillary Rodham Clinton
Secretary of State Helsinki, Finland
June 27, 2012
Thank you so much. I am absolutely delighted to be back in Helsinki and to have some time to visit about the issues that we are working on together, the challenges we are facing together, and I’m grateful to the Ambassador for his leadership. I personally want to thank Bruce and Cody for their enthusiastic expression of American interests and American values and their outreach to Fins everywhere. Because it’s not just about government-to-government, it is about people-to-people, and I’m extremely impressed by what they have done. And Bruce, this innovation building behind us is a perfect example of economic statecraft, of partnership, of innovation, and I’m excited about what you’re going to be able to accomplish there.

I want to thank the ministers for being here. Of course, I have had the chance to work with Alex before when he served in a different capacity. And I’ve heard that really terrible southern accent before, but the good spirit with which it is delivered has never failed to bring a smile to my face. And it has been very important to follow through on a lot of the good work that sustains itself between our two countries regardless of what government, what party, what individuals hold positions.

And I am so pleased to meet you, Minister. I have not had the chance to work with you before now, but I’m very grateful, because I know that you have been a good friend to the Embassy community here as we look for more ways to work together on the environment. And I greatly appreciated everything that you said, and I look forward to continuing this partnership with you. And since we’re on a first-named basis, Ville, I will look forward to hearing your southern British accent – (laughter) – on a future occasion.

This is an important announcement because, I think, as you heard, we have to continue to be creative as to how we move toward a sustainable environment and a sustainable economy. And I could not agree more with the ministers that they go hand in hand, and that’s really the message that the Ambassador has also been delivering. We’re looking for real solutions to real problems. And it’s absolutely true that we have to continue to work within the international community, the UN framework, because we have to bring the entire world with us. But it’s also true that on a national basis, and increasingly, on a regional and multilateral basis, we have to help lead the way for the world as well.

And that’s why it gives me great pleasure to officially welcome Finland as the newest partner of the Climate and Clean Air Coalition. This partnership was launched in February to reduce those short-lived climate pollutants, including the methane, black carbon, hydrofluorocarbons that are responsible for more than 30 percent of current global warming and have a disproportionate impact on the Arctic for a variety of reasons, but in particular because of the hastening of the melting of the ice.

Now because these pollutants are harmful to health and to agriculture, we can actually save and improve millions of lives and avoid the loss of millions of tons of crops by acting now. When I started this coalition back in February, it was both developed countries and developing, along with the United Nations’ UNEP, which has done some of the groundbreaking research about why these short-lived pollutants are so important in our fight against global warming. In just the last four months, it has tripled in size. We’ve increased our funding. We’re creating an advisory panel to ensure that coalition efforts are guided by cutting-edge science. And last week, at the sustainability conference, Rio+20, the coalition launched a new initiative to reduce methane and other pollutants from landfills. We have encouraged and enlisted mayors from several major world cities. We also have the World Bank on board, and other countries are joining. In fact, all of the G-8 countries recently signed up to the coalition at the last meeting.

But we’re not stopping there, because we formed this coalition for the purpose of taking action, and demonstrating globally that we can actually do things, that we can translate our concerns and our words into actions and results. In partnership with the UN Environment and Development Programs, the European Commission, and key private sector companies, we are co-hosting a conference in Bangkok this July to showcase new technologies that can drastically reduce the need for HFCs in refrigeration and air conditioning.

Here is a perfect example of the problem: As you have a growing middle class in countries like India and China, where the climate can often get very, very hot, you have an increasing demand for air conditioning. The increasing demand for air conditioning in turn puts more HFCs into the air, thereby creating more of a problem from the short-lived pollutants. So what we want to do is try to get ahead of this, not to tell people – certainly, we in the United States are in no position to tell people, “Look, you’ve lived without air conditioning for thousands of years; you can keep doing it for the sake of the climate.”
No, instead we want to say, “Look, as you have developed, as your incomes have risen, we know that you want to take advantage of air conditioning, but let’s see if we can find a way to do that that is more climate-friendly.” And that is part of the mission that we have in this new coalition.

We’re also working with countries and companies to reduce methane emissions from oil and gas production and black carbon from diesel emissions. I was recently in Norway, which also has just joined the coalition, and their state oil company, Statoil, has done research which shows that the leaking of gas from Russian pipelines is equivalent – the lost gas is equivalent to Norway’s entire production.

Now, you would think there would be both an economic reason, an energy reason, and a climate reason to try to become more efficient in the production of oil and gas, and we’re going to look for ways to do that.

Finland is such a leader in clean technology, including clean diesel, that we think Finland, in particular, has a great economic opportunity coming out of this coalition. Now let me be clear, the coalition on short-lived pollutants does not replace the crucial work we have to do on the broader range of climate change. We have to continue to look for ways to take on carbon dioxide emissions – and I guess I’ll keep talking until the rain goes. (Laughter.) Can we get everybody in back there who looks like they are trying to stay out of the weather, please? I mean, I think there’s room on the sides here. This is like coming late to church; you have to find room for everybody. (Laughter.)

So we do –Ville, we do have to stay focused on the next UN conference in Doha, and keep working toward and international agreement on carbon dioxide. Now for our part, the United States has not waited on either our own legislation or international agreements. We’ve already adopted fuel efficiency standards that will be among the most aggressive in the world, effectively doubling the miles per gallon of gas for cars in the U.S. by 2025. We’re reducing the government’s carbon footprint, and this innovation center is a perfect example of what our government is trying to do – I think this is a blessing. This is such a model of energy efficiency that we are working to achieve LEED platinum status. And we’ve even installed micro-wind turbines to provide electricity, and we’re using the highly efficient Finnish-designed heating and cooling system. And we’ve got Embassy vehicles that operate using diesel that are being upgraded to run on locally produced bio-diesel which will further reduce emissions by up to 50 percent. We’re switching the Embassy generators to bio-diesel as well, and all of our lighting will be converted to LEDs, which produce better light and use 80 percent less energy. So we’re reducing emissions and we’re also reducing costs.

We’re trying to do this around the world, and under Bruce’s leadership, the League of Green Embassies based right here in Helsinki is sort of spreading the word and spreading the best practices. So we’re doing a lot, and we have a lot to do, and I think it’s fair to say that having Finland as a partner really enhances the effectiveness of the coalition. And Finland’s leadership in sustainable development is a real model and I think, as Alex said, a great economic opportunity, because part of what we have to do is to continue to innovate, to create value-added products in order to retain a competitive edge in the global marketplace. And so Finland is demonstrating how we can make progress, improve lives, and fulfill our obligations to the planet.

So I’m excited to welcome you into this coalition, looking forward to working closely with you, and I think it’s fair to say that we see clean energy, clean tech as the future not only for Finland and for the United States, but really the future for the kind of world we’re trying to create.

So with that, I’m going to turn it back to you, Bruce, and maybe you could tell us about some of these light bulbs – (laughter) – while we stay out of the rain. (Applause.)

PRESIDENT OBAMA ALLOWS EXPORT-IMPORT BANK TO LOAN VIETNAM $125.8 MILLION

Photo:  Secretary of Defense Panetta Visits Vietnam.  Credit:  U.S. Navy.  
FROM:  U.S. EXPORT-IMPORT BANK
President Obama Signs Waiver Allowing Ex-Im Bank to
Move Forward with Export Financing for Vietnam Communications Satellite
Washington, D.C. --- The White House on Monday issued a Presidential Determination on Vietnam by President Barack Obama. The president’s action clears the way for the Export-Import Bank of the United States (Ex-Im Bank) board of directors to move forward with a $125.8 million direct loan to Vietnam to support their purchase of a U.S.-manufactured telecommunications and television satellite.

The purchaser is the Vietnam Post and Telecommunications Group, a wholly state-owned company.
The president's action is required by a provision in the Ex-Im Bank Charter that mandates a determination by him that it is in the national interest for Ex-Im Bank to extend a loan of $50 million or more to a Marxist-Leninist country.

“I’m pleased that President Obama has given the board the authority to advance this loan application from Vietnam, which is one of the nine countries Ex-Im has identified as offering U.S. exporters the greatest sales opportunities,” said Fred P. Hochberg, chairman and president of Ex-Im. “We hope to support more U.S. companies’ exports to Vietnam, which in turn will support more American jobs.”

Ex-Im Bank transactions have been eligible for such presidential determinations since President Clinton determined on March 8, 1998 that it was in the national interest for Ex-Im Bank to do business with the Socialist Republic of Vietnam.

With the President Obama’s determination, the board will soon vote whether to refer the transaction to Congress for review and comment. After the expiration of a 35-day comment period the board would schedule a second and final vote. (Congress is notified of all Ex-Im transactions of $100 million or more so that Members may provide the Bank with comments for the Board to consider prior to a final vote.)

The Lockheed Martin Corporation is supplying U.S. equipment and services for the Vinasat II project. Ex-Im’s loan, if approved by the board of directors, will be secured by the full faith and credit sovereign guarantee of the Socialist Republic of Vietnam.
The proposed loan of $125.8 million will finance the export of goods and services valued at about $215 million.

U.S.-CUBA RELATIONS

Map Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With Cuba
Bureau of Western Hemisphere Affairs
Fact Sheet
June 21, 2012
PROFILE
Cuba's authoritarian regime assumed power by force in 1959 and has severely restricted fundamental freedoms, repressed political opponents, and violated human rights. The United States imposed an embargo on Cuba in 1960 and broke diplomatic relations in 1961, following the Cuban Government's expropriation of U.S. properties and its move toward adoption of a one-party communist system.

U.S. policy toward Cuba is focused on encouraging democratic and economic reforms and increased respect for human rights on the part of the Cuban Government. The U.S. Government has taken steps to reach out to the Cuban people in support of their desire to freely determine their country’s future. Although Cuba is subject to U.S. trade sanctions, the United States remains Cuba’s second largest supplier of food. The United States is committed to supporting safe, orderly, and legal migration from Cuba through the effective implementation of the 1994-95 U.S.-Cuba Migration Accords.

U.S. Assistance to Cuba
U.S. programs in Cuba include humanitarian support to political prisoners and their families, human rights and democracy promotion, and facilitating the free flow of information to, from and within the island.

Bilateral Economic Relations
Remittances play an important role in Cuba's state-controlled economy, with much of that funding coming from families in the United States. In 2009, the United States announced the lifting of restrictions on family travel and remittances to Cuba, expanded the list of items eligible for humanitarian export to Cuba, and announced new regulations for U.S. telecommunications companies to expand the flow of information to Cuba. In 2011, the United States announced regulatory changes that increase purposeful travel including religious, cultural, educational, and people-to-people travel; expand the individuals and groups eligible to send and receive remittances; and allow all U.S. international airports to apply to provide charter services to Cuba (previously only three airports were authorized).

Travel to Cuba is restricted by U.S. regulations to licensed travelers engaged in a set of specified activities. All U.S. travel to Cuba must be licensed by the Department of Treasury's Office of Foreign Assets Control (OFAC), and must fall into one of 12 categories. Further information on the licensing process can be obtained from OFAC or at its website. Those contemplating a visit to Cuba should consult the consular information page about the country.

All exports to Cuba must be licensed by the Commerce Department's Bureau of Industry and Security (BIS). Further information on exports to Cuba can be found at the BIS website.

Cuba's Membership in International Organizations
Cuba has an activist foreign policy and aims to find new sources of trade, aid, foreign investment, and political support, as well as to promote opposition to U.S. policy toward Cuba, in particular U.S. trade sanctions. Cuba and the United States belong to a number of the same international organizations, including the United Nations and the World Trade Organization. Cuba was readmitted to the Organization of American States in 2009 after having been expelled in 1962, but the country has refused to rejoin.

Geography
Area: 110,860 sq. km. (44,200 sq. mi.); slightly smaller than Pennsylvania.
Cities: Capital--Havana (pop. 2 million). Other major cities--Santiago de Cuba, Camaguey, Santa Clara, Holguin, Guantanamo, Matanzas, Cienfuegos, Pinar del Rio.
Terrain: Flat or gently rolling plains, hills; mountains up to 2,000 meters (6,000 ft.) in the southeast.
Climate: Tropical, moderated by trade winds; hurricane season (August-November); dry season (November-April); rainy season (May-October).

People
Population (official 2010 statistics): 11.2 million; 76% urban, 24% rural.
Ethnic groups (official 2002 Cuba census): 65% white, 25% mixed, 10% black.
Language: Spanish. Literacy (25 years and older; Cuban Government sources)--99.8%.
Work force (5.07 million): Services (including education, health and social services)--42%; agriculture--19%; commerce and tourism--12%; industry--11%; transport, storage, and communications--6%; construction--5%; mining, electricity, gas and water--2%.

Government
Type: Totalitarian communist state; current government assumed power by force on January 1, 1959.
Independence: May 20, 1902.
Political party: Cuban Communist Party (PCC); only one party allowed.
Administrative subdivisions: 16 provinces, including the city of Havana, and one special municipality (Isle of Youth).

Economy
GDP (official 2010 statistics, based on constant 1997 prices): $51.01 billion.
Real annual growth rate: 3.2% (2001); 1.4% (2002); 3.8% (2003); 5.8% (2004); 11.2% (2005); 12.1% (2006); 7.3% (2007); 4.1% (2008); 1.4% (2009); 2.1% (2010).
GDP per capita income (2010 est., based on constant 1997 prices): $4,545.
Average monthly salary: $20.

Natural resources: Nickel, cobalt, iron ore, copper, manganese, salt, timber, oil, natural gas.
Agriculture: Products--sugar, citrus and tropical fruits, tobacco, coffee, rice, beans, meat, vegetables.
Industry: Types--sugar and food processing, oil refining, cement, electric power, light consumer and industrial products, pharmaceutical and biotech products.

Trade: Exports (2009)--$2.88 billion f.o.b.: nickel/cobalt, oil and oil derivatives, pharmaceutical and biotech products, sugar and its byproducts, tobacco, seafood, citrus, tropical fruits, coffee. Major export markets (2009)--Venezuela $533 million (19%); China $517 million (18%); Canada $434 million (15%); Netherlands $237 million (8%); Spain $155 million (5%); Russia $88 million (3%); Brazil $69 million (2%); Netherlands Antilles $59 million (2%); France $45 million (2%); others $742 million (26%). Imports (2009)--$8.91 billion f.o.b.: petroleum, food, machinery, chemicals.Major import suppliers (2009)--Venezuela $2.6 billion (29%); China $1.17 billion (13%); Spain $753 billion (8%); United States $675 million (8%); Brazil $509 million (6%); Italy $324 million (4%); Mexico $303 million (3%); Canada $292 million (3%); Vietnam $276 million (3%); Germany $275 million (3%); others $1.7 billion (19%).
Cuba has two currencies in circulation: the peso (CUP), and the convertible peso (CUC), both of which are fixed by the government. The CUC is fixed at 1:1 with the U.S. dollar, and 24:1 with the Cuban peso (CUP). State enterprises, however, must exchange CUP and CUC at a 1:1 ratio, an artificial rate that hinders domestic fiscal accounting. The Cuban Government levies a penalty of 10% on CUC-U.S. dollar transactions.

Official statistics are available from the Cuban Office of National Statistics. For alternative statistics, see the Economist Intelligence Unit.

PEOPLE AND RELIGION
Cuba is a multiracial society with a population of mainly Spanish and African origins. Cuba was officially an atheist state from 1959 until a constitutional change in 1992 abolished atheism as the state creed and provided for the separation of church and state. At that time, the Communist Party also lifted its ban on members with religious beliefs. The largest organized religion is the Roman Catholic Church, but evangelical protestant denominations continue to grow rapidly. Baptists, Methodists, Jehovah’s Witnesses, and Pentecostal churches are some of the largest Protestant denominations. Afro-Cuban religions, a blend of native African religions and Roman Catholicism, are widely practiced. There are also small groups of Jews and Muslims. See the Department's report on international religious freedom for further information regarding religion in Cuba.

HISTORY
Spanish settlers established the raising of cattle, sugarcane, and tobacco as Cuba's primary economic pursuits. As the native Indian population died out, African slaves were imported to work the ranches and plantations. Slavery was abolished in 1886.

Cuba was the last major Spanish colony to gain independence, following a lengthy struggle begun in 1868. Jose Marti, Cuba's national hero, helped initiate the final push for independence in 1895. In 1898, the United States entered the conflict after the USS Maine sank in Havana Harbor on February 15 due to an explosion of undetermined origin. In December of that year, Spain relinquished control of Cuba to the United States with the Treaty of Paris. On May 20, 1902, the United States granted Cuba its independence but retained the right to intervene to preserve Cuban independence and stability in accordance with the Platt Amendment. In 1934, the Platt Amendment was repealed. The United States and Cuba concluded a Treaty of Relations in 1934 which, among other things, continued the 1903 agreements that leased the Guantanamo Bay naval base to the United States.

Independent Cuba was often ruled by authoritarian political and military figures who either obtained or remained in power by force. Fulgencio Batista, an army sergeant, organized a non-commissioned officer revolt in September 1933 and wielded significant power behind the scenes until he was elected president in 1940. Batista was voted out of office in 1944 and did not run in 1948. Both those elections were won by civilian political figures with the support of party organizations. Running for president again in 1952, Batista seized power in a bloodless coup 3 months before the election was to take place, suspended the balloting, and began ruling by decree. Many political figures and movements that wanted a return to the government according to the constitution of 1940 disputed Batista's undemocratic rule.

On July 26, 1953, Fidel Castro, who had been involved in increasingly violent political activity before Batista's coup, led a failed attack on the Moncada army barracks in Santiago de Cuba in which more than 100 died. After defending himself in a trial open to national and international media, he was convicted and jailed, and subsequently was freed in an act of clemency, before going into exile in Mexico. There he organized the "26th of July Movement" with the goal of overthrowing Batista, and the group sailed to Cuba on board the yacht Granma, landing in the eastern part of the island in December 1956.

Batista's dictatorial rule fueled increasing popular discontent and the rise of many active urban and rural resistance groups, a fertile political environment for Castro's 26th of July Movement. Faced with a corrupt and ineffective military--itself dispirited by a U.S. Government embargo on weapons sales to Cuba--and public indignation and revulsion at his brutality toward opponents, Batista fled on January 1, 1959. Although he had promised a return to constitutional rule and democratic elections along with social reforms, Castro used his control of the military to consolidate his power by repressing all dissent from his decisions, marginalizing other resistance figures, and imprisoning or executing thousands of opponents. An estimated 3,200 people were executed by the Cuban Government between 1959 and 1962 alone. As the revolution became more radical, hundreds of thousands of Cubans fled the island.

Castro declared Cuba a socialist state on April 16, 1961. For the next 30 years, Castro pursued close relations with the Soviet Union and worked to advance the geopolitical goals of the Soviet Union, funding and fomenting violent subversive and insurrectional activities and participating in foreign interventions until the demise of the U.S.S.R. in 1991.

Relations between the United States and Cuba deteriorated rapidly as the Cuban Government expropriated U.S. properties and moved toward adoption of a one-party communist system. In response, the United States imposed an embargo on Cuba in October 1960, and, in response to Castro's provocations, broke diplomatic relations on January 3, 1961. Tensions between the two governments peaked during the October 1962 missile crisis.

GOVERNMENT AND POLITICAL CONDITIONS
Cuba is a totalitarian communist state headed by General Raul Castro and a cadre of party loyalists. Castro replaced his brother Fidel Castro as chief of state, president of Cuba, and commander-in-chief of the armed forces on February 24, 2008. The first Communist Party Congress (CPC) since 1997 was held in April 2011, where Raul Castro was officially named first secretary of the Communist Party. He announced that 80-year-old Jose Ramon Machado Ventura would remain second-in-charge and Vice President Ramiro Valdes would remain as number three. The CPC also marked Fidel Castro’s formal resignation from official responsibilities within the party, although he will likely remain an important symbolic figure. Also proposed at the congress were two 5-year term limits for top party and government positions, but the party will not take up the issues of succession and its role in government again until January 2012, when it will hold a smaller party conference. The Cuban Government seeks to control most aspects of Cuban life through the Communist Party and its affiliated mass organizations, the government bureaucracy, and the state security apparatus. The Ministry of Interior is the principal organ of state security and control.

According to the Soviet-inspired Cuban constitution of 1976, the National Assembly and its Council of State have supreme authority. Since the National Assembly meets only twice a year for a few days each time, the 31-member Council of State wields power. A Council of Ministers, through its nine-member executive committee, handles the administration of the economy, which is state-controlled except for a small private market sector. Raul Castro is President of the Council of State and Council of Ministers, and Jose Ramon Machado Ventura serves as First Vice President of both bodies. In total, there are five Vice Presidents in the Council of State and seven in the Council of Ministers.

Although the constitution theoretically provides for independent courts, it explicitly subordinates them to the National Assembly and to the Council of State. The Supreme Court is the highest judicial body. Due process is routinely denied to Cuban citizens, particularly in cases involving political offenses. The constitution states that all legally recognized civil liberties can be denied to anyone who opposes the "decision of the Cuban people to build socialism."

The Communist Party is constitutionally recognized as Cuba's only legal political party. The party monopolizes all government positions, including the Council of State and judicial offices. Though not a formal requirement, party membership is a de facto prerequisite for high-level official positions and professional advancement in most areas. A small number of non-party members have been permitted by the controlling Communist authorities to serve in the National Assembly. The Communist Party through its front organizations approves candidates for all elected offices. Citizens do not have the right to change the government.

Human Rights
Cuba is a signatory to the Universal Declaration of Human Rights (UDHR) and sits on the UN Human Rights Council. In February 2008, Cuba signed the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights, but has yet to ratify either document. In spite of this, Cuba places severe restrictions on many of the rights described in the UDHR and continues to engage in harassment, surveillance, arbitrary detention, and imprisonment of peaceful human rights activists and political opponents.

In 2010 and 2011, Cuba freed dozens of political prisoners, including those arrested during a crackdown in 2003 known as the “Black Spring.” Most of the releases were conditioned on the immediate departure of the prisoners for third countries, although a few have been allowed to remain in Cuba. Since the government does not allow international monitoring of its prisons and does not release information about the prison population, it is difficult to accurately count the number of political prisoners in Cuba. Estimates from human rights groups range from as low as 30 to more than 100. In addition, human rights groups have noted that while the number of political prisoners has decreased, the number of short-term detentions (typically aimed at disrupting planned civil society activities) increased significantly in 2010 and 2011.

The law subordinates freedom of speech, freedom of the press, and freedom of assembly to the aim of building a “socialist society.” Criticism of national leaders can lead to imprisonment. The government maintains complete control over all forms of mass media, including newspapers, radio and television. The Communist Party, enshrined in the constitution as “the superior leading force of society and of the state,” determines content and editorial tone, resulting in almost complete uniformity across all broadcasts and publications. Independent journalists face censorship as well as detention and harassment by state security. Similarly, the government limits access to the Internet to a small number of professionals and party faithful and employs monitoring and blocking technologies to further restrict freedom. Cuba estimates that 14% of its population has access to the Internet; international estimates are lower, making Cuba among the least-wired countries in the world.

Authorities have used surveillance, short-term detentions, and state-organized mobs to interfere with unauthorized meetings and public demonstrations. Civil society groups have reported dozens of cases in which state security and police prevented or broke up meetings using house arrests, short-term detentions, and checkpoints around planned meeting sites. The government also continues to regularly employ organized mobs to humiliate opponents and interfere with peaceful assemblies. Although the government characterizes counter-demonstrations as spontaneous, participants arrive in government buses and openly coordinate with state security officials.

The government also restricts freedom of movement, both domestically and internationally. Cubans must obtain permission to change their place of residence and can be forcibly returned to their home province if they are illegally resident. This law is most commonly employed in the capital, where thousands of people reside illegally and at least dozens are returned to the provinces on a weekly basis.

For international travel to all destinations, Cubans must receive an exit permit. The Cuban Government routinely denies exit permits to political opponents and human rights activists. In addition to political opponents, the government will not grant an exit visa to some types of professionals (e.g., doctors, nurses, etc.) until they have worked in Cuba for a certain number of years after completing their education. In 2011, President Castro announced that travel restrictions would be loosened in the near future, but that restrictions would remain in place to prevent educated professionals and others from leaving the country.

The Cuban Government routinely violates international labor standards. The law does not allow workers to form and join independent unions of their choice. All unions must be recognized and affiliated with the Central de Trabajadores de Cuba (CTC), or the Workers’ Central Union of Cuba, whose leaders are chosen by the Communist Party. The CTC's principal responsibility is to ensure that government production goals are met. It does not bargain collectively, promote worker rights, or protect the right to strike. The government harasses, detains, and has imprisoned leaders of unauthorized labor movements.

For additional information, see also the Department's Country Report on Human Rights Practices for Cuba.

NATIONAL SECURITY
With the loss of Soviet-era subsidies in the early 1990s, Cuba's armed forces have shrunk considerably, both in terms of numbers and assets. Combined active duty troop strength for all three services is estimated at 50,000 to 55,000 personnel (compared to some 235,000 on active duty 10 years ago) and much of Cuba's weaponry appears to be in storage. Cuba's air force, once considered among the best equipped in Latin America, no longer merits that distinction, though it still possesses advanced aircraft and weapons systems; the navy has become primarily a coastal defense force with no blue water capability. The Cuban army is still one of the region's more formidable, but it also is much reduced and no longer has the considerable resources necessary to project power abroad. Exchanges and visits with foreign military allies like Russia, China, and Venezuela have become common over the past few years.

The military plays a dominant role in the economy, particularly in tourism, civil aviation, foreign trade, and retail operations. Cuba’s National Civil Defense, responsible for preparing for and responding to natural disasters and oil spills, is also under the Ministry of Armed Forces. The country's two paramilitary organizations, the Territorial Militia Troops and the Youth Labor Army, have a reduced training capability. Cuba also adopted a "war of the people" strategy that highlights the defensive nature of its capabilities. In this respect, and despite the drain on the country’s resources, the government has continued to hold national military drills in preparation for hypothetical military aggression from the United States. The government continues to maintain a large state security apparatus under the Ministry of Interior to repress dissent within Cuba.

ECONOMY
GDP Growth
Real gross domestic product (GDP) grew by 2.1% in 2010, according to official statistics. However, Cuba uses a unique “social” method for calculating GDP which makes its figures impossible to compare with any other country in the world. The reported growth reflected a slight improvement on the 1.4% growth in 2009 and 1.9% growth the Cuban Government had forecast for 2010.

Economic Structure
The Cuban Government continues to adhere to socialist principles in organizing its state-controlled economy. Most of the means of production are owned and run by the government and, according to Cuban Government statistics, about 83% of the labor force is employed by the state. An additional 5% of the labor force is employed by cooperatives closely connected with the state. Only 12% of the labor force works in the private sector, including private farmers, artists, and 142,000 self-employed ("cuentapropistas"), representing less than 3% of the entire workforce. More than 60% of the workforce is employed in non-productive sectors.

ALASKA STATE MEDICAID AGENCY TO PAY U.S. HHS $1.7 MILLION TO SETTLE ALLEGED HIPAA PRIVACY VIOLATIONS

Map Credit:  Wikimedia.
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Alaska Medicaid settles HIPAA security case for $1,700,000
The Alaska Department of Health and Social Services (DHSS), the state Medicaid agency, has agreed to pay the U.S. Department of Health and Human Services’ (HHS) $1,700,000 to settle possible violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Security Rule.  Alaska DHSS has also agreed to take corrective action to properly safeguard the electronic protected health information (ePHI) of their Medicaid beneficiaries.

The HHS Office for Civil Rights (OCR) began its investigation following a breach report submitted by Alaska DHSS as required by the Health Information Technology for Economic and Clinical Health (HITECH) Act.  The report indicated that a portable electronic storage device (USB hard drive) possibly containing ePHI was stolen from the vehicle of a DHSS employee.  Over the course of the investigation, OCR found evidence that DHSS did not have adequate policies and procedures in place to safeguard ePHI.  Further, the evidence indicated that DHSS had not completed a risk analysis, implemented sufficient risk management measures, completed security training for its workforce members, implemented device and media controls, or addressed device and media encryption as required by the HIPAA Security Rule.

In addition to the $1,700,000 settlement, the agreement includes a corrective action plan that requires Alaska DHSS to review, revise, and maintain policies and procedures to ensure compliance with the HIPAA Security Rule.  A monitor will report back to OCR regularly on the state’s ongoing compliance efforts.

“Covered entities must perform a full and comprehensive risk assessment and have in place meaningful access controls to safeguard hardware and portable devices,” said OCR Director Leon Rodriguez.  “This is OCR’s first HIPAA enforcement action against a state agency and we expect organizations to comply with their obligations under these rules regardless of whether they are private or public entities.”

OCR enforces the HIPAA Privacy and Security Rules. The Privacy Rule gives individuals rights over their protected health information and sets rules and limits on who can look at and receive that health information. The Security Rule protects health information in electronic form by requiring entities covered by HIPAA to use physical, technical, and administrative safeguards to ensure that electronic protected health information remains private and secure.

The HITECH Breach Notification Rule requires covered entities to report an impermissible use or disclosure of protected health information, or a “breach,” of 500 individuals or more to the HHS Secretary Sebelius and the media.  Smaller breaches affecting less than 500 individuals must be reported to the secretary on an annual basis.

Individuals who believe that a covered entity has violated their (or someone else’s) health information privacy rights or committed another violation of the HIPAA Privacy or Security Rule may file a complaint with OCR at: http://www.hhs.gov/ocr/privacy/hipaa/complaints/index.html.

U.S. SOLDIERS WILL BE HEADING TO LONDON OLYMPICS

Photo:  Buckingham Palace, London, England.  Credit:  Wikimedia.
FROM:  AMERICAN FORCES PRESS SERVICE
Team USA loaded With Soldiers for London Olympic Games
By Tim Hipps
Army Installation Management Command
EUGENE, Ore., June 25, 2012 - The U.S. Army World Class Athlete Program will send what it describes as its strongest contingent of athletes and coaches ever to the 2012 Olympic Games in London.

Eleven WCAP coaches and athletes have already qualified to participate. Several more are competing for spots on Team USA at the 2012 U.S. Olympic Track and Field Team trials here, which began June 21 and conclude July 1.

WCAP provides soldier-athletes the support and training needed to successfully compete in Olympic sports on the national and international levels, including the winter and summer Olympics, Pan American Games, world championships and Conseil International du Sport Militaire's Military World Games.

The soldier-athletes serve as ambassadors for the Army by promoting it to the world and assisting with recruiting and retention efforts. Since 1948, more than 600 soldiers have represented the United States as Olympic athletes and coaches. They have collected more than 140 medals in a variety of sports, including boxing, wrestling, rowing, shooting, bobsled and track and field.

WCAP wrestling head coach Shon Lewis, a retired staff sergeant who has led the Army to 11 national team titles in Greco-Roman wrestling, will lead three of his wrestlers to London as an assistant coach for Team USA.

As a WCAP athlete, Lewis, 45, of Oakland, Calif., is a 12-time armed forces champion and a 10-time national team member. He was named Greco-Roman Coach of the Year five times by USA Wrestling, the governing body for wrestling in the United States.
Two-time Olympian Sgt. 1st Class Dremiel Byers, 37, of Kings Mountain, N.C., will wrestle in the 120-kilogram/264.5-pound Greco-Roman division. A world champion in 2002, Byers, a 10-time national champion, is the only U.S. wrestler who has won gold, silver and bronze medals at the world championships. He also is the only American wrestler to win gold at both the open and military world championships.

Spc. Justin Lester is a strong medal contender in the 66-kilogram/145.5 pound Greco-Roman division. Lester, 28, a native of Akron, Ohio, heads to England as USA Wrestling's reigning Greco-Roman Wrestler of the Year. A two-time bronze medalist at the world championships, Lester has more than ample motivation to succeed in London. "I've had two bronze medals, and they're all right, but I need an Olympic gold medal," he said. "That's eating at me more than anything, that I don't have that gold medal."
Two-time Olympian Sgt. Spenser Mango, 25, of St. Louis, will compete in the 55-kilogram/121-pound Greco-Roman class. A four-time national champion, Mango is eager to return to the Olympics. "The first time, I'll admit, I was surprised myself," Mango recalled of his Olympic debut in Beijing. "I knew I could do it, but I hadn't done it yet. This time, it's all business – need to bring home some medals. I've wrestled almost all the top guys in the world in my weight class. I know what I need to do – just get out there and really get after it."

Four-time Olympian Sgt. 1st Class Daryl Szarenski, 44, of Saginaw, Mich., will compete in both the 50-meter free pistol and 10-meter air pistol. He struck gold with the air pistol and silver with the free pistol at the 2011 Pan American Games in Guadalajara, Mexico.  Szarenski finished 13th at the Olympics in Athens, Greece, in 2004 and 13th in Beijing in 2008. He's aiming for a shot at the podium in London."I'm hoping to keep wearing them down and get in there and get a medal out of it," Szarenski said. "I think the training regimen that I have now is a lot better than what it was in the past. I've changed a couple technical issues and I think I'm heading in the right direction. I feel that I'm shooting the best now that I've ever shot."

Two-time Olympian Sgt. 1st Class Keith Sanderson, 37, of San Antonio, will compete in the 25-meter rapid-fire pistol event. He set an Olympic record during the qualification rounds in Beijing but left China without a medal. He hopes to improve upon that fifth-place result in London.  "I remember the excitement," Sanderson said. "That was more than I was ready for. It's faded a little bit, but I remember it was awesome. It was more than I could control. I'm looking forward to feeling that again. ... It was something that words can't describe, and to this day, words can't describe it. I didn't sleep for two or three days after I competed – not a wink – from all of the adrenalin."
Four-time Olympian Maj. David Johnson, 48, of Hampton, Va., has coached three athletes to Olympic medals and led shooters to 25 medals in World Cup events. He will again coach Team USA's rifle shooters in London.

Two-time Olympian Staff Sgt. John Nunn, 34, of Evansville, Ind., already qualified for the 50-meter race walk and might attempt to qualify in the 20-kilometer race walk on June 30 at the U.S. Olympic Track and Field Team Trials in Eugene, Ore.   Nunn competed in the 20-kilometer event at the 2004 Olympics in Athens but did not make Team USA for the 2008 Beijing Games. His personal best in the 20K race walk is 1 hour, 22 minutes, 31 seconds.

Spc. Dennis Bowsher, 29, of Dallas, will compete in modern pentathlon, a five-sport event that includes fencing, swimming, equestrian show jumping, cross country and laser pistol shooting all in the same day. Bowsher finished fourth in both the 2011 Military World Games in Rio de Janeiro, Brazil, and the 2011 Pan American Games in Guadalajara, where he secured an Olympic berth.

Staff Sgt. Charles Leverette, 39, of Brent, Ala., will serve as Team USA's assistant boxing coach in London. A former WCAP heavyweight boxer, Leverette was a bronze medalist at the 2004 U.S. Olympic Boxing Team Trials.

Staff Sgt. Joe Guzman, 32, of Eloy, Ariz., will serve as the trainer and help work the corners for Team USA's boxers in London. As a WCAP boxer, Guzman was a three-time armed forces champion.

Four-time Olympian Basheer Abdullah, a retired staff sergeant and head coach of the WCAP boxing team from St. Louis, will serve as Team USA's head boxing coach in London. He also led the U.S. boxing team in the 2004 Athens Games and served as a technical advisor for Team USA at the Olympics in 2000 and 2008.
Several other WCAP soldiers are vying for Olympic berths at the 2012 U.S. Olympic Track and Field Team trials here.

WCAP also features a Paralympic program for wounded warriors and expects to qualify at least one soldier for the London Paralympic Games. Sights are set on qualifying several more for the 2014 Paralympic Games in Sochi, Russia, and the 2016 Summer Paralympics in Rio de Janeiro, Brazil.