FROM: FOOD AND DRUG ADMINISTRATION
The Division of Drug Information (DDI) is CDER's focal point for public inquiries. We serve the public by providing information on human drug products and drug product regulation by FDA.
On January 14, 2014, FDA is recommending health care professionals discontinue prescribing and dispensing prescription combination drug products that contain more than 325 milligrams (mg) of acetaminophen per tablet, capsule, or other dosage unit. There are no available data to show that taking more than 325 mg of acetaminophen per dosage unit provides additional benefit that outweighs the added risks for liver injury. Further, limiting the amount of acetaminophen per dosage unit will reduce the risk of severe liver injury from inadvertent acetaminophen overdose, which can lead to liver failure, liver transplant, and death.
We recommend that health care providers consider prescribing combination drug products that contain 325 mg or less of acetaminophen. We also recommend that when a pharmacist receives a prescription for a combination product with more than 325 mg of acetaminophen per dosage unit that they contact the prescriber to discuss a product with a lower dose of acetaminophen. A two tablet or two capsule dose may still be prescribed, if appropriate. In that case, the total dose of acetaminophen would be 650 mg (the amount in two 325 mg dosage units). When making individual dosing determinations, health care providers should always consider the amounts of both the acetaminophen and the opioid components in the prescription combination drug product.
In January 2011 we asked manufacturers of prescription combination drug products containing acetaminophen to limit the amount of acetaminophen to no more than 325 mg in each tablet or capsule by January 14, 2014. We requested this action to protect consumers from the risk of severe liver damage which can result from taking too much acetaminophen. This category of prescription drugs combines acetaminophen with another ingredient intended to treat pain (most often an opioid), and these products are commonly prescribed to consumers for pain, such as pain from acute injuries, post-operative pain, or pain following dental procedures.
Thursday, January 16, 2014
PRESS SECRETARY'S PRESS GAGGLE ABOARD AIR FORCE ONE
FROM: THE WHITE HOUSE
Press Gaggle by Press Secretary Jay Carney Aboard AF1 en route Raleigh, NC, 1/15/2014
Aboard Air Force One
En Route Raleigh, North Carolina
10:25 A.M. EST
MR. CARNEY: Good morning, ladies and gentlemen. Welcome aboard Air Force One for the first outing of the New Year. I hope you look forward to it as I do. I just wanted to say a couple of things about where we’re going and the event the President will participate in.
Today the President will visit Vacon, a company that manufactures AC drives, which are used to control the speed of electric motors to maximize energy efficiency. At 11:35 a.m. the President will tour the R&D facility, accompanied by Dan Isaksson, Vacon vice president, and Secretary Moniz. At 1:00 p.m. at North Carolina State University, the President will announce new steps with the private sector to strengthen the manufacturing sector, boost advanced manufacturing, and attract good jobs with good wages that a growing middle class requires.
The President will announce the selection of a North Carolina headquartered consortium of businesses and universities led by North Carolina State University to lead a manufacturing innovation institute for next generation power electronics.
President Obama has declared the year 2014 a “Year of Action.” And while he will continue to work with Congress on new measures to create jobs and grow the economy, he will also use his executive authority to get things done. After shedding jobs for a decade, our manufacturers have added 568,000 jobs over the past nearly four years, including 80,000 over the past five months. Manufacturing production has grown since the end of the recession at its fastest pace in over a decade. The President is committed to building on that progress.
With that, I’ll take your questions.
Q: Could you respond to some of the criticisms that Judge Bates made of recommendations regarding surveillance? He objects, for example, to the appointment of a special advocate to a rigorous procedure for national security letters, and so on.
MR. CARNEY: Mark, as you know, we are in the final stages of wrapping up the administration’s review of our signals intelligence programs. As we’ve been saying, we’re not going to discuss decisions and outcomes while the review is ongoing, and we wouldn’t discuss observations or assessments by others about recommendations that the President himself is considering as he makes final decisions prior to his remarks at the Justice Department on Friday.
Q: What about the New York Times story today that the NSA is using radio waves to tap into computers around the world and monitor them?
MR. CARNEY: As you know, I won’t discuss specific tools or processes. But the NSA operates under heavy oversight and is focused on discovering and developing intelligence about valid and foreign intelligence targets, such as terrorists, human traffickers, and drug smugglers. They are not interested in the personal information about ordinary Americans, nor do they use foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of, or give intelligence that we collect to U.S. companies to enhance their international competitiveness or increase their bottom line.
Q: Do you have anything to add to your statement last night about the unemployment insurance? Who is to blame for this?
MR. CARNEY: I think if you look at my statement, we’re very disappointed that Republicans blocked a common-sense, compromise solution that would have extended unemployment insurance benefits to the 1.3 million Americans and their families who have been cut off from this emergency assistance.
It’s very frustrating when, again, the previous President, a Republican, signed similar extensions five times without offsets. And Majority Leader Senator Reid has gone quite a distance to try to accommodate the concerns of Republicans who have shown a desire and an interest in extending these benefits when it comes to offsets and when it comes to offering amendments.
So we’re going to continue to work with congressional leaders, with Senate leaders to move this forward. The need is urgent. It should not be tied up in ideological or partisan debate. The Americans who need this assistance are Republicans, they're Democrats, they're independents, they're unaffiliated -- they're Americans. And Congress should act.
Q: Will the President address the vote or the lack of votes in the Senate in his remarks today?
MR. CARNEY: He might bring it up in his remarks, but it’s certainly not the focus of his remarks.
Q: Agenda for his meeting with Senate Democrats? What’s at the top of the agenda?
MR. CARNEY: Well, it’s basically to sync our watches on the policy agenda that the President has been putting forward and will add to in his State of the Union address. So there will be a broad array of topics, including -- as you heard him say yesterday at the Cabinet meeting -- efforts we’re undertaking to work with Congress legislatively to move the country forward and efforts that he can undertake using the unique authorities and powers that a President has to make advances on behalf of the middle class and the American economy. And today’s event in North Carolina is a perfect example of the President using that power and that authority.
Q: Jay, speaking of today’s event, these manufacturing institutes, as you know, were an initiative announced at the State of the Union last year, and here we are two weeks before this year’s State of the Union. Is there any frustration that it’s taken him close to a year to announce the establishment of the first one of what’s supposed to eventually be 45 of these institutes?
MR. CARNEY: Not at all. I mean, I think if we had announced everything in a week, you would have said it wasn’t serious, it wasn’t real, and the assessments made about where to launch these initiatives weren’t vigorous and substantive.
I think that we have seen extremely positive growth in our manufacturing sector. We’ve seen areas with huge potential for further growth, especially in advanced manufacturing, in technologies and businesses that the United States can dominate, and by doing so can create high-paying jobs that support middle-class families here at home.
This is something the President is very committed to, and he’s very excited about today’s event.
Q: “Year of Action” -- his economic issues can we see -- expect action on more health care actions, immigration, other issues on the President’s domestic agenda?
MR. CARNEY: The answer is, yes. I think the point that the President has been making and others have made on his behalf is that in many ways the American economy, as it has emerged from the recovery, has grown steadily and created 8.2 million jobs, is on a precipice of even greater strides forward. And we want to do everything we can, using our authorities, the President's authorities to take action through the executive and through the power of the pen and the power of the phone, as well as take action through and with Congress legislatively on immigration reform and so many other issues that we can work together on.
It bears notice that, despite all of our differences, despite our disappointment and frustration with the decision by Republicans to block UI benefits thus far, that there has also been steady progress on the omnibus legislation that is the product of a bipartisan compromise on a budget deal. And that omnibus legislation, that funding bill protects some of the President's key priorities, including in manufacturing, SelectUSA, including in early childhood education and others.
So there's a lot of positive things that can happen and are happening on behalf of the economy and the middle class and the American people, and we just need to keep moving forward. So the President is going to talk a lot about, in the days ahead and in the State of the Union address, ways that we can use all the tools available to us to grow the economy and create jobs that middle-class families can depend on.
Q: Can you talk about the significance of the phrase “Year of Action” compared to previous years, which seemed were also years of action? Why are you pointing out that this year is a year of action?
MR. CARNEY: Well, that’s a profound question, Zack. The fact of the matter is this President has throughout his time in office utilized the tools available to him. But we're going to reinvigorate that process. We're going to continue to look for creative and innovative ideas to do things like advance the cause of developing high-tech and other advanced manufacturing centers across the country; to expand access to early childhood education; to move forward with rebuilding our infrastructure.
One other positive outcome of the omnibus legislation that’s moving through the Congress now is that it provides significant funds for TIGER investments -- for TIGER grants. And that goes right to the infrastructure needs that we have in this country. And as you know, investment in infrastructure, as had been recognized by both Democrats and Republicans over the years, provide an immediate jolt to the economy, immediate job creation, as well as long-term positive benefits because of improved infrastructure.
Q: Jay, can I ask about Iran? As you know and have reacted to, Iran's foreign minister laid a wreath at the grave of a Hezbollah leader who was involved in a terrorist attack against Americans. And we spoke yesterday about these reports of a Russian-Iran oil-for-goods deal. You’ve made the case repeatedly of why you think Congress should wait and give diplomacy a chance. Are you concerned that events like these, which you can't control, could have a negative effect and sort of weaken the argument that you're making with folks on the Hill that, look, you need to give us a window of time to try to get a deal done?
MR. CARNEY: Well, I’d say a couple things. On the matter of the Iranian foreign minister honoring Imad Mugniyah, the United States condemns the decision taken by the Iranian foreign minister to place a wreath at the grave of a former leader of the Lebanese Hezbollah responsible for heinous acts of terrorism that killed hundreds of innocent people, including Americans. The inhumane violence that Mugniyah perpetrated and that Lebanese Hezbollah continues to perpetrate in a region with Iran’s financial and materiel support has had profoundly destabilizing and deadly effects for Lebanon and the region.
The decision to commemorate an individual who has participated in such vicious acts and whose organization continues to actively support terrorism worldwide sends the wrong message and will only exacerbate tensions in the region.
Now, I think this speaks to the fact that through the P5-plus-1 and the agreements that have been negotiated, and the process moving forward, we are addressing with our international partners the profound and important challenge of ensuring that Iran does not develop and obtain a nuclear weapon. There are a host of vital national security interests at stake here, as well as the national security interests of our allies and friends.
Even as we pursue that and do it in a way that demands transparency and verifiability from the Iranians, we do not let up in our views and our positions when it comes to other activities, including the support of terrorist organizations that Iran engages in.
On the matter of the reports about the oil-for-goods deal with Iran that Russia may be engaged in, we've been very clear that we're concerned about that. When we saw those reports, press reports, it was immediately raised at the highest levels by Secretary Kerry, with Foreign Minister Lavrov. And I can tell you that if that deal moves forward it would raise serious concerns as it would be inconsistent with the terms of the P5-plus-1 agreement with Iran and could potentially trigger U.S. sanctions against the entities and individuals involved in any such transactions.
So our disposition has not changed on these matters. And that's why it’s so important to be clear that the actions that Iran takes, the steps it takes to either comply with or not comply with commitments it makes are what we judge Iran by -- not by statements meant for a domestic audience or by promises rather than action. So we’re going to press forward.
When it comes to the need to implement the Joint Plan of Action and engage in negotiations through the P5-plus-1 with the Iranians, it is absolutely the right thing to do to test whether or not we can resolve the challenge posed by Iran’s nuclear program peacefully.
The President retains all options, including military options, to fulfill his policy goal. But it is absolutely preferable to him, to the American people, and to all those who demand that Iran forsake nuclear weapons that this be resolved peacefully.
Q: The Senate Intelligence Committee has released a declassified report on Benghazi that found that -- or concluded that the attacks there were preventable and based on known security shortfalls, and the explanations for what caused the attack were -- inaccurately referred to the protests without sufficient eyewitness accounts or intelligence to base that on. Is there any response to those findings today?
MR. CARNEY: Well, you know the administration has made extraordinary efforts to work with seven different congressional committees investigating what happened before, during, and after the Benghazi attacks, including testifying at 13 congressional hearings, participating in 50 staff briefings, and providing over 25,000 pages of documents.
Today’s report largely reaffirms the findings reached by the independent Benghazi Accountability Review Board, and a number of the recommendations are consistent with the work the State Department has taken to improve diplomatic security, including upgrading security cameras, improving fire-protective equipment, and increasing Marine security guard presence.
I’d refer you to the State Department for the status on implementing each of those recommendations. But as you know, the administration is focused on two pieces: bringing to justice those responsible for the deaths of four Americans; and making sure that we take the steps necessary to improve the security at vulnerable facilities so that our men and women serving overseas in diplomatic positions are -- rather, to improve their security, as I said.
So I think this reinforces what other investigations have found, which is that there was not enough security to protect the four Americans who lost their lives and that there are things that we must do and that we are doing to ensure that we do everything we can to protect the security of Americans serving overseas, often in difficult circumstances and dangerous circumstances.
Q: Jay, any details on the First Lady's 50th birthday party?
MR. CARNEY: No, I don’t have anything on that. I’d refer you to the East Wing.
Q: No Jay-Z, Beyoncé dance party? (Laughter.)
Q: Are you going?
MR. CARNEY: Again, I'd refer you to the East Wing.
Q: Have you been invited?
MR. CARNEY: I'd refer you to the East Wing. (Laughter.)
Q: Do you dance?
MR. CARNEY: I do. Anybody else?
Q: One other thing. Can you confirm that the President is going to nominate Maria Contreras-Sweet to head the SBA?
MR. CARNEY: I can. The President will do that this afternoon --
Q: In his remarks?
MR. CARNEY: No, upon return to the White House. And I think if you look at her remarkable career, you will see that she is an excellent candidate for this position. And the President is grateful that he will be able to nominate her today.
Q: One more for you. What do the lobbying efforts look like from the White House on the fast-track TPA bill?
MR. CARNEY: It’s a priority of the President’s, his entire trade agenda, and we’re working with Congress to move that forward.
Q: Thank you.
MR. CARNEY: Thanks.
END
Press Gaggle by Press Secretary Jay Carney Aboard AF1 en route Raleigh, NC, 1/15/2014
Aboard Air Force One
En Route Raleigh, North Carolina
10:25 A.M. EST
MR. CARNEY: Good morning, ladies and gentlemen. Welcome aboard Air Force One for the first outing of the New Year. I hope you look forward to it as I do. I just wanted to say a couple of things about where we’re going and the event the President will participate in.
Today the President will visit Vacon, a company that manufactures AC drives, which are used to control the speed of electric motors to maximize energy efficiency. At 11:35 a.m. the President will tour the R&D facility, accompanied by Dan Isaksson, Vacon vice president, and Secretary Moniz. At 1:00 p.m. at North Carolina State University, the President will announce new steps with the private sector to strengthen the manufacturing sector, boost advanced manufacturing, and attract good jobs with good wages that a growing middle class requires.
The President will announce the selection of a North Carolina headquartered consortium of businesses and universities led by North Carolina State University to lead a manufacturing innovation institute for next generation power electronics.
President Obama has declared the year 2014 a “Year of Action.” And while he will continue to work with Congress on new measures to create jobs and grow the economy, he will also use his executive authority to get things done. After shedding jobs for a decade, our manufacturers have added 568,000 jobs over the past nearly four years, including 80,000 over the past five months. Manufacturing production has grown since the end of the recession at its fastest pace in over a decade. The President is committed to building on that progress.
With that, I’ll take your questions.
Q: Could you respond to some of the criticisms that Judge Bates made of recommendations regarding surveillance? He objects, for example, to the appointment of a special advocate to a rigorous procedure for national security letters, and so on.
MR. CARNEY: Mark, as you know, we are in the final stages of wrapping up the administration’s review of our signals intelligence programs. As we’ve been saying, we’re not going to discuss decisions and outcomes while the review is ongoing, and we wouldn’t discuss observations or assessments by others about recommendations that the President himself is considering as he makes final decisions prior to his remarks at the Justice Department on Friday.
Q: What about the New York Times story today that the NSA is using radio waves to tap into computers around the world and monitor them?
MR. CARNEY: As you know, I won’t discuss specific tools or processes. But the NSA operates under heavy oversight and is focused on discovering and developing intelligence about valid and foreign intelligence targets, such as terrorists, human traffickers, and drug smugglers. They are not interested in the personal information about ordinary Americans, nor do they use foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of, or give intelligence that we collect to U.S. companies to enhance their international competitiveness or increase their bottom line.
Q: Do you have anything to add to your statement last night about the unemployment insurance? Who is to blame for this?
MR. CARNEY: I think if you look at my statement, we’re very disappointed that Republicans blocked a common-sense, compromise solution that would have extended unemployment insurance benefits to the 1.3 million Americans and their families who have been cut off from this emergency assistance.
It’s very frustrating when, again, the previous President, a Republican, signed similar extensions five times without offsets. And Majority Leader Senator Reid has gone quite a distance to try to accommodate the concerns of Republicans who have shown a desire and an interest in extending these benefits when it comes to offsets and when it comes to offering amendments.
So we’re going to continue to work with congressional leaders, with Senate leaders to move this forward. The need is urgent. It should not be tied up in ideological or partisan debate. The Americans who need this assistance are Republicans, they're Democrats, they're independents, they're unaffiliated -- they're Americans. And Congress should act.
Q: Will the President address the vote or the lack of votes in the Senate in his remarks today?
MR. CARNEY: He might bring it up in his remarks, but it’s certainly not the focus of his remarks.
Q: Agenda for his meeting with Senate Democrats? What’s at the top of the agenda?
MR. CARNEY: Well, it’s basically to sync our watches on the policy agenda that the President has been putting forward and will add to in his State of the Union address. So there will be a broad array of topics, including -- as you heard him say yesterday at the Cabinet meeting -- efforts we’re undertaking to work with Congress legislatively to move the country forward and efforts that he can undertake using the unique authorities and powers that a President has to make advances on behalf of the middle class and the American economy. And today’s event in North Carolina is a perfect example of the President using that power and that authority.
Q: Jay, speaking of today’s event, these manufacturing institutes, as you know, were an initiative announced at the State of the Union last year, and here we are two weeks before this year’s State of the Union. Is there any frustration that it’s taken him close to a year to announce the establishment of the first one of what’s supposed to eventually be 45 of these institutes?
MR. CARNEY: Not at all. I mean, I think if we had announced everything in a week, you would have said it wasn’t serious, it wasn’t real, and the assessments made about where to launch these initiatives weren’t vigorous and substantive.
I think that we have seen extremely positive growth in our manufacturing sector. We’ve seen areas with huge potential for further growth, especially in advanced manufacturing, in technologies and businesses that the United States can dominate, and by doing so can create high-paying jobs that support middle-class families here at home.
This is something the President is very committed to, and he’s very excited about today’s event.
Q: “Year of Action” -- his economic issues can we see -- expect action on more health care actions, immigration, other issues on the President’s domestic agenda?
MR. CARNEY: The answer is, yes. I think the point that the President has been making and others have made on his behalf is that in many ways the American economy, as it has emerged from the recovery, has grown steadily and created 8.2 million jobs, is on a precipice of even greater strides forward. And we want to do everything we can, using our authorities, the President's authorities to take action through the executive and through the power of the pen and the power of the phone, as well as take action through and with Congress legislatively on immigration reform and so many other issues that we can work together on.
It bears notice that, despite all of our differences, despite our disappointment and frustration with the decision by Republicans to block UI benefits thus far, that there has also been steady progress on the omnibus legislation that is the product of a bipartisan compromise on a budget deal. And that omnibus legislation, that funding bill protects some of the President's key priorities, including in manufacturing, SelectUSA, including in early childhood education and others.
So there's a lot of positive things that can happen and are happening on behalf of the economy and the middle class and the American people, and we just need to keep moving forward. So the President is going to talk a lot about, in the days ahead and in the State of the Union address, ways that we can use all the tools available to us to grow the economy and create jobs that middle-class families can depend on.
Q: Can you talk about the significance of the phrase “Year of Action” compared to previous years, which seemed were also years of action? Why are you pointing out that this year is a year of action?
MR. CARNEY: Well, that’s a profound question, Zack. The fact of the matter is this President has throughout his time in office utilized the tools available to him. But we're going to reinvigorate that process. We're going to continue to look for creative and innovative ideas to do things like advance the cause of developing high-tech and other advanced manufacturing centers across the country; to expand access to early childhood education; to move forward with rebuilding our infrastructure.
One other positive outcome of the omnibus legislation that’s moving through the Congress now is that it provides significant funds for TIGER investments -- for TIGER grants. And that goes right to the infrastructure needs that we have in this country. And as you know, investment in infrastructure, as had been recognized by both Democrats and Republicans over the years, provide an immediate jolt to the economy, immediate job creation, as well as long-term positive benefits because of improved infrastructure.
Q: Jay, can I ask about Iran? As you know and have reacted to, Iran's foreign minister laid a wreath at the grave of a Hezbollah leader who was involved in a terrorist attack against Americans. And we spoke yesterday about these reports of a Russian-Iran oil-for-goods deal. You’ve made the case repeatedly of why you think Congress should wait and give diplomacy a chance. Are you concerned that events like these, which you can't control, could have a negative effect and sort of weaken the argument that you're making with folks on the Hill that, look, you need to give us a window of time to try to get a deal done?
MR. CARNEY: Well, I’d say a couple things. On the matter of the Iranian foreign minister honoring Imad Mugniyah, the United States condemns the decision taken by the Iranian foreign minister to place a wreath at the grave of a former leader of the Lebanese Hezbollah responsible for heinous acts of terrorism that killed hundreds of innocent people, including Americans. The inhumane violence that Mugniyah perpetrated and that Lebanese Hezbollah continues to perpetrate in a region with Iran’s financial and materiel support has had profoundly destabilizing and deadly effects for Lebanon and the region.
The decision to commemorate an individual who has participated in such vicious acts and whose organization continues to actively support terrorism worldwide sends the wrong message and will only exacerbate tensions in the region.
Now, I think this speaks to the fact that through the P5-plus-1 and the agreements that have been negotiated, and the process moving forward, we are addressing with our international partners the profound and important challenge of ensuring that Iran does not develop and obtain a nuclear weapon. There are a host of vital national security interests at stake here, as well as the national security interests of our allies and friends.
Even as we pursue that and do it in a way that demands transparency and verifiability from the Iranians, we do not let up in our views and our positions when it comes to other activities, including the support of terrorist organizations that Iran engages in.
On the matter of the reports about the oil-for-goods deal with Iran that Russia may be engaged in, we've been very clear that we're concerned about that. When we saw those reports, press reports, it was immediately raised at the highest levels by Secretary Kerry, with Foreign Minister Lavrov. And I can tell you that if that deal moves forward it would raise serious concerns as it would be inconsistent with the terms of the P5-plus-1 agreement with Iran and could potentially trigger U.S. sanctions against the entities and individuals involved in any such transactions.
So our disposition has not changed on these matters. And that's why it’s so important to be clear that the actions that Iran takes, the steps it takes to either comply with or not comply with commitments it makes are what we judge Iran by -- not by statements meant for a domestic audience or by promises rather than action. So we’re going to press forward.
When it comes to the need to implement the Joint Plan of Action and engage in negotiations through the P5-plus-1 with the Iranians, it is absolutely the right thing to do to test whether or not we can resolve the challenge posed by Iran’s nuclear program peacefully.
The President retains all options, including military options, to fulfill his policy goal. But it is absolutely preferable to him, to the American people, and to all those who demand that Iran forsake nuclear weapons that this be resolved peacefully.
Q: The Senate Intelligence Committee has released a declassified report on Benghazi that found that -- or concluded that the attacks there were preventable and based on known security shortfalls, and the explanations for what caused the attack were -- inaccurately referred to the protests without sufficient eyewitness accounts or intelligence to base that on. Is there any response to those findings today?
MR. CARNEY: Well, you know the administration has made extraordinary efforts to work with seven different congressional committees investigating what happened before, during, and after the Benghazi attacks, including testifying at 13 congressional hearings, participating in 50 staff briefings, and providing over 25,000 pages of documents.
Today’s report largely reaffirms the findings reached by the independent Benghazi Accountability Review Board, and a number of the recommendations are consistent with the work the State Department has taken to improve diplomatic security, including upgrading security cameras, improving fire-protective equipment, and increasing Marine security guard presence.
I’d refer you to the State Department for the status on implementing each of those recommendations. But as you know, the administration is focused on two pieces: bringing to justice those responsible for the deaths of four Americans; and making sure that we take the steps necessary to improve the security at vulnerable facilities so that our men and women serving overseas in diplomatic positions are -- rather, to improve their security, as I said.
So I think this reinforces what other investigations have found, which is that there was not enough security to protect the four Americans who lost their lives and that there are things that we must do and that we are doing to ensure that we do everything we can to protect the security of Americans serving overseas, often in difficult circumstances and dangerous circumstances.
Q: Jay, any details on the First Lady's 50th birthday party?
MR. CARNEY: No, I don’t have anything on that. I’d refer you to the East Wing.
Q: No Jay-Z, Beyoncé dance party? (Laughter.)
Q: Are you going?
MR. CARNEY: Again, I'd refer you to the East Wing.
Q: Have you been invited?
MR. CARNEY: I'd refer you to the East Wing. (Laughter.)
Q: Do you dance?
MR. CARNEY: I do. Anybody else?
Q: One other thing. Can you confirm that the President is going to nominate Maria Contreras-Sweet to head the SBA?
MR. CARNEY: I can. The President will do that this afternoon --
Q: In his remarks?
MR. CARNEY: No, upon return to the White House. And I think if you look at her remarkable career, you will see that she is an excellent candidate for this position. And the President is grateful that he will be able to nominate her today.
Q: One more for you. What do the lobbying efforts look like from the White House on the fast-track TPA bill?
MR. CARNEY: It’s a priority of the President’s, his entire trade agenda, and we’re working with Congress to move that forward.
Q: Thank you.
MR. CARNEY: Thanks.
END
PHONY MORTGAGE RELIEF SCAM GETS DEFENDANTS BANNED FROM BUSINESS
FROM: FEDERAL TRADE COMMISSION
Defendants in Phony Mortgage Relief Scheme to Pay Nearly $3.6 Million; Orders Ban Them from Mortgage Relief Business
The South Florida-based defendants in an alleged mortgage relief scam will surrender their assets and be banned permanently from providing mortgage relief and debt relief services to consumers under a settlement with the Federal Trade Commission. This settlement represents the FTC’s largest judgment to date against a purported mortgage assistance relief provider.
In 2012, as part of the Distressed Homeowner Initiative, a multi-agency federal enforcement crackdown, the FTC charged 11 companies and five individuals with running an illegal mortgage relief scheme, which operated under various names, including Prime Legal Plans. Using Reaching U Network, a sham non-profit front, and a maze of other companies, the scheme reeled in consumers with false promises that enrollment would save their homes from foreclosure or result in lower mortgage payments. The FTC obtained a court order shutting down the operation and freezing the defendants’ corporate and personal assets pending settlement of the case.
“Rather than make good on their promise to offer people relief from mortgage trouble, these schemers put their targets even further behind financially,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “They broke the law by taking money upfront and making false promises.”
The FTC charged that the defendants promised consumers that they would prevent foreclosure or significantly lower their mortgage payments by conducting audits of consumers’ loans and providing access to full-service, expert legal representation to fight their lenders. The defendants, who marketed their programs in English and Spanish through a national outbound telemarketing campaign, allegedly told consumers that “80 percent of mortgages contain some fraud” and, in some cases, that even a small error in their loan documents could nullify the mortgage. The defendants also allegedly told consumers that they would be assigned an expert mortgage foreclosure defense attorney in their state who would “halt the foreclosure process” and save their homes. But instead of helping consumers, the defendants charged them illegal advance fees ranging from $595 to $750 per month, while delivering little or no help and driving them deeper into debt. In addition to alleging that the defendants deceived consumers, the FTC charged that the scheme violated the Mortgage Assistance Relief Services Rule’s ban on advance fees for mortgage relief. The FTC also asserted that the Defendants placed numerous calls to numbers listed on the national Do Not Call Registry.
Under the settlements announced today, the defendants are banned from participating in the mortgage relief and debt relief industries, and are prohibited from misrepresenting various features of any product or service or making advertising claims that are unsupported by competent and reliable evidence. They also are prohibited from placing unsolicited calls both to numbers listed on the Do Not Call Registry and to any number in an area code for which they have not paid the fee to access the list of numbers on the Do Not Call Registry.
The settlements require the Defendants to pay nearly $3.6 million to redress consumer victims. Under the terms of the settlements:
A $25.1 million judgment, reflecting the total amount of fees taken in by the scheme, is imposed on Derek Radzikowski, Jason Desmond, Prime Legal Plans LLC, and five other corporate defendants. The judgment will be suspended when they surrender their assets – an estimated $3.5 million. The order also resolves allegations against Desmond’s wife, relief defendant Shelie Desmond, by requiring her to turn over an estimated $110,000 in unearned ill-gotten gains that she received from the scheme.
$1,428,658 judgments are imposed on Andrew Primavera and Lazaro Dinh and four corporate defendants. The judgments, entered August 22, 3013, reflect these defendants’ ill-gotten gains, and were suspended after they surrendered their assets: about $20,0000 from Dinh and $1,600 from Primavera. The Dinh order also resolved allegations against two relief defendants: the San Lazaro Irrevocable Life Insurance and its trustee, Dinh’s sister Maria Soltura. The $336,929 judgment against Soltura and the Trust was suspended when the FTC received the $1,575 that was frozen in the trust’s bank account when the FTC shut down the operation last year.
A $392,215 judgment was imposed against Christopher N. Edwards and Reaching U Network, Inc., and a $102,417 judgment was imposed upon Kim E. Landolfi. The judgments, entered May 22, 2013, reflect these defendants’ ill-gotten gains and were suspended when they surrendered frozen assets to the FTC: approximately $950 from Edwards and Reaching U Network, Inc. and $40,000 from Landolfi.
If it is later determined that a defendant provided false financial information to the FTC, the full amount of the judgment against that defendant will become due.
Under federal law, foreclosure rescue and loan modification service providers are banned from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable. For consumer information about avoiding mortgage and foreclosure rescue scams, see this FTC material.
The Commission vote approving the consent decree for Radzikowski, Desmond, Prime Legal Plans LLC; Freedom Legal Plans, LLC; Frontier Legal Plans, LLC; American Hardship, LLC; Legal Servicing and Billing Partners LLC; and Back Office Support Systems LLC was 4-0. The consent decree was filed in the U.S. District Court for the Southern District of Florida and entered by the court on December 27, 2013.
NOTE: Consent decrees have the force of law when approved and signed by the District Court judge.
Defendants in Phony Mortgage Relief Scheme to Pay Nearly $3.6 Million; Orders Ban Them from Mortgage Relief Business
The South Florida-based defendants in an alleged mortgage relief scam will surrender their assets and be banned permanently from providing mortgage relief and debt relief services to consumers under a settlement with the Federal Trade Commission. This settlement represents the FTC’s largest judgment to date against a purported mortgage assistance relief provider.
In 2012, as part of the Distressed Homeowner Initiative, a multi-agency federal enforcement crackdown, the FTC charged 11 companies and five individuals with running an illegal mortgage relief scheme, which operated under various names, including Prime Legal Plans. Using Reaching U Network, a sham non-profit front, and a maze of other companies, the scheme reeled in consumers with false promises that enrollment would save their homes from foreclosure or result in lower mortgage payments. The FTC obtained a court order shutting down the operation and freezing the defendants’ corporate and personal assets pending settlement of the case.
“Rather than make good on their promise to offer people relief from mortgage trouble, these schemers put their targets even further behind financially,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “They broke the law by taking money upfront and making false promises.”
The FTC charged that the defendants promised consumers that they would prevent foreclosure or significantly lower their mortgage payments by conducting audits of consumers’ loans and providing access to full-service, expert legal representation to fight their lenders. The defendants, who marketed their programs in English and Spanish through a national outbound telemarketing campaign, allegedly told consumers that “80 percent of mortgages contain some fraud” and, in some cases, that even a small error in their loan documents could nullify the mortgage. The defendants also allegedly told consumers that they would be assigned an expert mortgage foreclosure defense attorney in their state who would “halt the foreclosure process” and save their homes. But instead of helping consumers, the defendants charged them illegal advance fees ranging from $595 to $750 per month, while delivering little or no help and driving them deeper into debt. In addition to alleging that the defendants deceived consumers, the FTC charged that the scheme violated the Mortgage Assistance Relief Services Rule’s ban on advance fees for mortgage relief. The FTC also asserted that the Defendants placed numerous calls to numbers listed on the national Do Not Call Registry.
Under the settlements announced today, the defendants are banned from participating in the mortgage relief and debt relief industries, and are prohibited from misrepresenting various features of any product or service or making advertising claims that are unsupported by competent and reliable evidence. They also are prohibited from placing unsolicited calls both to numbers listed on the Do Not Call Registry and to any number in an area code for which they have not paid the fee to access the list of numbers on the Do Not Call Registry.
The settlements require the Defendants to pay nearly $3.6 million to redress consumer victims. Under the terms of the settlements:
A $25.1 million judgment, reflecting the total amount of fees taken in by the scheme, is imposed on Derek Radzikowski, Jason Desmond, Prime Legal Plans LLC, and five other corporate defendants. The judgment will be suspended when they surrender their assets – an estimated $3.5 million. The order also resolves allegations against Desmond’s wife, relief defendant Shelie Desmond, by requiring her to turn over an estimated $110,000 in unearned ill-gotten gains that she received from the scheme.
$1,428,658 judgments are imposed on Andrew Primavera and Lazaro Dinh and four corporate defendants. The judgments, entered August 22, 3013, reflect these defendants’ ill-gotten gains, and were suspended after they surrendered their assets: about $20,0000 from Dinh and $1,600 from Primavera. The Dinh order also resolved allegations against two relief defendants: the San Lazaro Irrevocable Life Insurance and its trustee, Dinh’s sister Maria Soltura. The $336,929 judgment against Soltura and the Trust was suspended when the FTC received the $1,575 that was frozen in the trust’s bank account when the FTC shut down the operation last year.
A $392,215 judgment was imposed against Christopher N. Edwards and Reaching U Network, Inc., and a $102,417 judgment was imposed upon Kim E. Landolfi. The judgments, entered May 22, 2013, reflect these defendants’ ill-gotten gains and were suspended when they surrendered frozen assets to the FTC: approximately $950 from Edwards and Reaching U Network, Inc. and $40,000 from Landolfi.
If it is later determined that a defendant provided false financial information to the FTC, the full amount of the judgment against that defendant will become due.
Under federal law, foreclosure rescue and loan modification service providers are banned from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable. For consumer information about avoiding mortgage and foreclosure rescue scams, see this FTC material.
The Commission vote approving the consent decree for Radzikowski, Desmond, Prime Legal Plans LLC; Freedom Legal Plans, LLC; Frontier Legal Plans, LLC; American Hardship, LLC; Legal Servicing and Billing Partners LLC; and Back Office Support Systems LLC was 4-0. The consent decree was filed in the U.S. District Court for the Southern District of Florida and entered by the court on December 27, 2013.
NOTE: Consent decrees have the force of law when approved and signed by the District Court judge.
Wednesday, January 15, 2014
NLRB ISSUES COMPLAINT AGAINST WALMART REGARDING WORKER PROTESTERS
FROM: NATIONAL LABOR RELATIONS BOARD
Office of Public Affairs 202-273-1991 publicinfo@nlrb.gov www.nlrb.gov NLRB Office of the General Counsel Issues Complaint against Walmart January 15, 2014 The National Labor Relations Board (NLRB) Office of the General Counsel has issued a consolidated complaint against Walmart alleging that the company violated the rights of its employees as a result of activities surrounding employee protests in 14 states. The Office of the General Counsel informed Walmart that complaints were authorized in November of 2013, but withheld issuing the complaints to allow time for settlement discussions. The discussions have not been successful and a consolidated complaint has issued regarding some of the alleged violations of federal law. More than 60 Walmart supervisors and one corporate officer are named in the complaint. Cases were consolidated to avoid unnecessary costs or delay. Walmart must respond to the complaint by January 28, 2014. No hearing date has been set. The Office of General Counsel has authorized or issued complaints in other Walmart cases and additional charges remain under investigation.
The National Labor Relations Act guarantees the right of private sector employees to act together to try to improve their wages and working conditions with or without a union. The consolidated complaint involves more than 60 employees, 19 of whom were discharged allegedly as a result of their participation in activities protected by the National Labor Relations Act. The Office of the General Counsel alleges that Walmart violated the Act when: During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests; At stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington, Walmart unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests; At stores in California, Florida, Missouri and Texas, Walmart unlawfully threatened, surveilled, disciplined, and/or terminated employees in anticipation of or in response to employees’ other protected concerted activities. #
Office of Public Affairs 202-273-1991 publicinfo@nlrb.gov www.nlrb.gov NLRB Office of the General Counsel Issues Complaint against Walmart January 15, 2014 The National Labor Relations Board (NLRB) Office of the General Counsel has issued a consolidated complaint against Walmart alleging that the company violated the rights of its employees as a result of activities surrounding employee protests in 14 states. The Office of the General Counsel informed Walmart that complaints were authorized in November of 2013, but withheld issuing the complaints to allow time for settlement discussions. The discussions have not been successful and a consolidated complaint has issued regarding some of the alleged violations of federal law. More than 60 Walmart supervisors and one corporate officer are named in the complaint. Cases were consolidated to avoid unnecessary costs or delay. Walmart must respond to the complaint by January 28, 2014. No hearing date has been set. The Office of General Counsel has authorized or issued complaints in other Walmart cases and additional charges remain under investigation.
The National Labor Relations Act guarantees the right of private sector employees to act together to try to improve their wages and working conditions with or without a union. The consolidated complaint involves more than 60 employees, 19 of whom were discharged allegedly as a result of their participation in activities protected by the National Labor Relations Act. The Office of the General Counsel alleges that Walmart violated the Act when: During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests; At stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington, Walmart unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests; At stores in California, Florida, Missouri and Texas, Walmart unlawfully threatened, surveilled, disciplined, and/or terminated employees in anticipation of or in response to employees’ other protected concerted activities. #
U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 15, 2014
FROM: DEFENSE DEPARTMENT
CONTRACTS
DEFENSE LOGISTICS AGENCY
Bluewater Defense Inc., San Lorenzo, Puerto Rico, has been awarded a maximum $108,083,360 modification (P00013) exercising the first option year on a one-year base contract (SPM1C1-13-D-1020) with four one-year option periods for various types of permethrin uniform trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico with a Jan. 17, 2015 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Intercomp Co.*, Medina, Minn., has been awarded a maximum $60,000,000 modification (P00102) exercising the fourth option year on a one-year base contract (SPM8EF-10-D-0001) with four one-year option periods for various weight set commercial scales. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Minnesota with a Feb. 15, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
KPMG LLP, McLean, Va., has been awarded a maximum $10,730,426 firm-fixed-price contract to all necessary management services, personnel and documentation required to support DLA’s financial audit. This contract is a competitive acquisition, and there were six offers received. Location of performance is Virginia with a Jan. 15, 2015 performance completion date. Using services are federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Contracting Services, Richmond, Va., (SP4703-11-A-0017-0038).
AIR FORCE
Northrop Grumman Systems Corp., Northrop Grumman Information Systems, Herndon, Va., has been awarded a $52,298,661 firm-fixed-price cost-reimbursement modification (P00013) to exercise option contract line items on an existing contract (FA8726-13-C-0001) to continue performance of comprehensive tasks and provide personnel, facilities, aircraft subsystems and support equipment for the Battlefield Airborne Communications Node E-11A platform. Work will be performed at Kandahar Air Base, Afghanistan, as well as Wichita, Kan., and is expected to be completed by Jan. 23, 2015. Fiscal 2014 operations and maintenance funds in the amount of $31,778,000 are being obligated at time of award. Air Force Life Cycle Management Center/HNAK, Hanscom Air Force Base, Mass., is the contracting activity.
NAVY
Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded $26,682,561 for cost-plus-fixed-fee, cost reimbursable delivery order 0067 against a previously issued basic ordering agreement (N00019-12-G-0006) in support of the V-22 aircraft. This order provides for on-site flight test management, flight test engineering, design engineering, and related efforts for the Naval Rotary Wing Aircraft Test Squadron. Work will be performed at Patuxent River Naval Air Station, Patuxent River, Md. (53 percent); Philadelphia, Pa. (32 percent); and Fort Worth, Texas (15 percent), and is expected to be completed in December 2014. Fiscal 2013 aircraft procurement and fiscal 2014 research, development, test and evaluation, Navy funds in the amount of $26,682,561 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Raytheon Co., Integrated Defense Systems, Tewksbury, Mass., is being awarded a $25,485,600 modification to a previously awarded contract (N00024-10-C-5126) for fiscal 2014 class services engineering efforts in support of DDG 1000 Zumwalt Class Destroyer Program. These efforts include class engineering, integration and production, and training and life cycle support services. Work will be performed in Portsmouth, R.I. (29 percent); Tewksbury, Mass. (26 percent); Sudbury, Mass. (26 percent); Moorestown, N.J. (10 percent); Marlboro, Mass. (6 percent); Herndon, Va. (1 percent); Houston, Texas (1 percent); Leesburg, Va. (0.5 percent), and Minneapolis, Minn. (0.5 percent), and is expected to be completed by December 2014. Fiscal 2014 research, development, test and evaluation; fiscal 2014 operations and maintenance, Navy, fiscal 2008 and 2014 shipbuilding and conversion, Navy funding in the amount of $10,829,922 will be obligated at time of award. Contract funds in the amount of $200,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $13,556,862 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) to provide 17,226 engine flight hours in support of the MV-22 aircraft. Work will be performed in Oakland, Calif. (70 percent) and Indianapolis, Ind. (30 percent), and is expected to be completed in November 2013. Fiscal 2014 operations and maintenance, Navy funds in the amount of $13,556,862 are being obligated on this award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
*Small Business
CONTRACTS
DEFENSE LOGISTICS AGENCY
Bluewater Defense Inc., San Lorenzo, Puerto Rico, has been awarded a maximum $108,083,360 modification (P00013) exercising the first option year on a one-year base contract (SPM1C1-13-D-1020) with four one-year option periods for various types of permethrin uniform trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico with a Jan. 17, 2015 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Intercomp Co.*, Medina, Minn., has been awarded a maximum $60,000,000 modification (P00102) exercising the fourth option year on a one-year base contract (SPM8EF-10-D-0001) with four one-year option periods for various weight set commercial scales. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Minnesota with a Feb. 15, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
KPMG LLP, McLean, Va., has been awarded a maximum $10,730,426 firm-fixed-price contract to all necessary management services, personnel and documentation required to support DLA’s financial audit. This contract is a competitive acquisition, and there were six offers received. Location of performance is Virginia with a Jan. 15, 2015 performance completion date. Using services are federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Contracting Services, Richmond, Va., (SP4703-11-A-0017-0038).
AIR FORCE
Northrop Grumman Systems Corp., Northrop Grumman Information Systems, Herndon, Va., has been awarded a $52,298,661 firm-fixed-price cost-reimbursement modification (P00013) to exercise option contract line items on an existing contract (FA8726-13-C-0001) to continue performance of comprehensive tasks and provide personnel, facilities, aircraft subsystems and support equipment for the Battlefield Airborne Communications Node E-11A platform. Work will be performed at Kandahar Air Base, Afghanistan, as well as Wichita, Kan., and is expected to be completed by Jan. 23, 2015. Fiscal 2014 operations and maintenance funds in the amount of $31,778,000 are being obligated at time of award. Air Force Life Cycle Management Center/HNAK, Hanscom Air Force Base, Mass., is the contracting activity.
NAVY
Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded $26,682,561 for cost-plus-fixed-fee, cost reimbursable delivery order 0067 against a previously issued basic ordering agreement (N00019-12-G-0006) in support of the V-22 aircraft. This order provides for on-site flight test management, flight test engineering, design engineering, and related efforts for the Naval Rotary Wing Aircraft Test Squadron. Work will be performed at Patuxent River Naval Air Station, Patuxent River, Md. (53 percent); Philadelphia, Pa. (32 percent); and Fort Worth, Texas (15 percent), and is expected to be completed in December 2014. Fiscal 2013 aircraft procurement and fiscal 2014 research, development, test and evaluation, Navy funds in the amount of $26,682,561 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
Raytheon Co., Integrated Defense Systems, Tewksbury, Mass., is being awarded a $25,485,600 modification to a previously awarded contract (N00024-10-C-5126) for fiscal 2014 class services engineering efforts in support of DDG 1000 Zumwalt Class Destroyer Program. These efforts include class engineering, integration and production, and training and life cycle support services. Work will be performed in Portsmouth, R.I. (29 percent); Tewksbury, Mass. (26 percent); Sudbury, Mass. (26 percent); Moorestown, N.J. (10 percent); Marlboro, Mass. (6 percent); Herndon, Va. (1 percent); Houston, Texas (1 percent); Leesburg, Va. (0.5 percent), and Minneapolis, Minn. (0.5 percent), and is expected to be completed by December 2014. Fiscal 2014 research, development, test and evaluation; fiscal 2014 operations and maintenance, Navy, fiscal 2008 and 2014 shipbuilding and conversion, Navy funding in the amount of $10,829,922 will be obligated at time of award. Contract funds in the amount of $200,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $13,556,862 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) to provide 17,226 engine flight hours in support of the MV-22 aircraft. Work will be performed in Oakland, Calif. (70 percent) and Indianapolis, Ind. (30 percent), and is expected to be completed in November 2013. Fiscal 2014 operations and maintenance, Navy funds in the amount of $13,556,862 are being obligated on this award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
*Small Business
SYRIA DONOR'S CONFERENCE REMARKS BY SECRETARY OF STATE KERRY
FROM: STATE DEPARTMENT
Press Availability at the Syria Donors' Conference
Press Availability
John Kerry
Secretary of State
Bayan Palace
Kuwait City, Kuwait
January 15, 2014
SECRETARY KERRY: Well, good afternoon. Thanks for being patient and waiting to have a chance to share some thoughts about both today and other issues that may be on your minds.
It was really heartening to take part in this conference here today and see the level of concern, but also the growing level of support for what has to be done in Syria. And I think that it's very key for all of us to maintain a united resolve, a shared resolve in the days to come, both in providing humanitarian relief, but also in pressing for the political solution. As I said earlier today, there is just no joy in a repeated conference to continue to be forced in conscience to support a growing number of refugees, when we really need to undo the underlying cause of the creation of those refugees. And so, it is critical for all of us to be laser beam-focused on finding that political solution and ending the violence all together, once and for all.
We are very grateful to Secretary General Ban Ki-moon for convening this today, and for his direction of significant focus, as well as resources, into this. And I want to thank again his Highness Sheikh Sabah Al Ahmed Al Jaber Al Sabah, for bringing everybody together and providing these extraordinary facilities for people to be able to act.
The human toll of this crisis is really clear for everybody to see now, almost to the point where the repetition of the numbers -- when you say 130,000 lives have been lost, there is a numbness that sets in, and it's hard for people to relate to what that really means on a daily basis, in terms of violence on the ground, disrupted families, loss of life. And you begin to get a better sense of that when you see it graphically, as we did in pictures and film today. What I saw, personally, at the Za’atari camp in Jordan really left an imprint on me in terms of not only the frustration and even anger that people there felt, because they don't see their lives changing and they don't see the crisis ending, but also the frustration that I felt with the global power gridlock on trying to do something that really meets the level of the challenge. And in the faces of those refugees, as well as in their numbers, there is a level of pain and a level of suffering that everybody in the world ought to share in some way, but which really demands a much greater response than has been provided yet by the community of nations.
So, I am proud that the United States of America is leading the charge, not only with respect to a response to the refugees, but also to try to end the creation of the refugees. And we today provided an additional -- through the grace of the American people -- another $380 million that brings our total to about 1.7 billion that we have provided -- the leading nation in the effort to try to deal with this crisis.
Now, some of our support will help Syrians immediately as they cope with one of the cruelest winters on record. And with our contributions today, we are providing, specifically, fuel for heating and cooking, we are providing thermal blankets and other critical winter supplies for tens of thousands of people.
In addition, we are also investing and meeting the longer-term needs of Syria's neighbors. After providing generous support for refugees for three years, to Lebanon, Turkey, and Jordan, who are all now under strain that I talked about earlier today, we also want to make sure that these nations are able to keep their hospitals and their schools up and running, and their economies growing, as they witness these enormous numbers of people, and particularly young children, coming into their societies. So that's why we contributed an additional $78 million in assistance for refugees living in Lebanon today, and we are delivering support to UN agencies and partners so that children will be able to see a doctor or go to school. You saw photos of kids in school. We are also trying to provide assistance so that parents will be able to pay rent and put a roof over their heads. Otherwise, we run the risk that abject poverty is going to become another threat to Lebanon’s sovereignty and stability.
We are also providing an additional $61 million in assistance to refugees in Jordan, where we see too many Syrian boys and girls who are now working at jobs in their teens -- low teens, some of them -- rather than being in school, learning and growing. Contributions from the United States have already helped to place 80 percent of Syrian refugee children in classrooms across Jordan. That's an extraordinary accomplishment, and something that Americans ought to be very proud of. But it also means there are still 30,000 children who are not in school. So our support today will ensure that many of these boys and girls are no longer going to be denied their childhood right to an education.
Now, some of the more than $30 million that we committed to refugees in Turkey today will also fund schooling and support children who are traumatized by war. We obviously are not able to wipe away the horror of some of the things these kids have seen and lived through, but what we can do is help to provide them with a future brighter than the life they live today, and we can do that with funding for things like teacher training, educational materials, and quality medical care, all of which is designated in the funding that we are providing.
All of the additional support that the United States announced today, whether in Syria, Turkey, Lebanon, or Jordan, in the wider region, is vital to security now, and it's absolutely essential for the region's next generation.
For many of the six-and-a-half million men and women who are displaced within Syria, some
of the contributions made on their behalf today will obviously not matter if it can’t reach them. So, access is critical. And the refusal of humanitarian access by both the regime and elements of the opposition is an outrage. We believe firmly that this is an affront to human dignity, and we are going to continue to find ways to raise the profile of this issue, so people understand it. Access is critical. And the Assad regime needs to provide that access.
In Paris this weekend, Foreign Minister Lavrov and I discussed what we can do, working with the International Committee of the Red Cross and others, to deliver humanitarian aid to besieged areas. And earlier this morning in the general gathering, I had a chance to meet with the president and director of the Red Cross, International Red Cross, who had just come back from Damascus, where they are engaged in discussions, and they told me firsthand how they get an agreement from one agency, and then they go to the other to have that agreement carried out, and the other agency takes it away. So they have told me personally stories of how they will have an agreed-upon access set up, and then the day comes along where the convoy is going to deliver the goods, and they say, "No, it's too insecure today, and you can't go," and they shut it down. And so, this excuse, this process, is a calculated, designed process by the Assad regime to deny people, as a matter of a weapon of war, the access that they have a right to for the delivery of these goods. And one of the things that I am determined to do coming out of here, is make certain that we hold them accountable. And this will clearly be a subject of discussion going into the Geneva meetings.
We also need to see a more positive climate for these talks. And my hopes are that in the next days, with a visit of Foreign Minister Muallem to Moscow, and with other efforts, that we will be able to secure from the Assad regime the steps necessary for a ceasefire in whatever number of places that might be able to be achieved. And we will continue to press for that. I will be talking with Foreign Minister Lavrov later today on the return trip home in order to see what progress we can make there.
So, a lot of nations, including the United States, made generous contributions today, or pledges for those contributions. But the greatest single pledge that our nations can make is to work together and commit to the hard work of diplomacy, in order to bring an end to this endless cycle of creating of refugees and of loss of life. And to put a stopper to the suffering and to end this crisis once and for all, we need to find a political solution. And we will remain committed to that effort.
I would be happy to take any questions at this point.
MODERATOR: The first question will be from (inaudible) of Reuters.
QUESTION: Thank you very much. Mr. Secretary, you just talked about holding Assad accountable concerning humanitarian access, and you talked earlier today (inaudible) about the need for them to stop (inaudible) other atrocities. But what are the specific consequences for Assad if he doesn't do this? Given President Obama's decision not to use force or to support outside force in Syria, how seriously do you think he takes your threats?
And a quick follow-up question. There is a report in the BBC today quoting Syria's deputy foreign minister saying some Western security officials have actually been in touch with the Damascus government to coordinate or talk about the threat of Islamic extremism. Is there any truth to that?
SECRETARY KERRY: I don't know anything about that. Certainly not under my auspices have there been any outreach or contact with that respect -- with that regard.
With respect to the issue of consequences, as I said previously, we are reviewing, in the State Department, a whole set of different options with respect to how to have a greater impact with respect to the humanitarian crisis, so that we're not simply standing up like this and talking about it. But those options are not yet ready for prime time. Our team is working on them, we're looking at how we might be able to have a greater impact directly on this issue of direct humanitarian access.
And with respect to the consequences, there are a number of different options. But, obviously, paramount among them is the fact that in London the London 11 nations committed in the communique to hold anybody who violates international laws with respect to the conduct of war or conflict accountable. And there are plenty of international organizations that are available through which to move to do that. And there are nations ready and willing to begin to bring those kinds of actions and complaints, should it be necessary.
So, I think President Assad needs to understand, and the people around him need to understand, that accountability goes on for some period of time. And there are people today paying the price in the Hague and elsewhere for their choices. So we are not without options, but we are working on some more immediate, and we will see where we are with respect to those choices when the time is right.
MODERATOR: The last question will be from (inaudible):
QUESTION: Thank you very much, Mr. Secretary. My question is really on Israel. Mr. Secretary, were you pleasantly shocked or upset by the comments made by the Israeli Defense Minister in this serious diplomatic role between Israel and the United States? Is it not a sign of a lack of confidence between the two allies? And is it not a sign of serious disagreements for the security plan and framework agreement you are working on?
And finally, on Egypt, could we have your position on the referendum which could lead to presidential (inaudible) by General al-Sisi.
SECRETARY KERRY: What was that last part, again?
QUESTION: Sorry, the --
SECRETARY KERRY: On Egypt.
QUESTION: The referendum could lead to presidential bid by General al-Sisi.
SECRETARY KERRY: Oh. Well, I'm -- let me take the second part, first. I'm not going to comment on the outcome with respect to Egypt yet, or what may or may not happen politically, because they're in the midst of this process even today. And our hope is that it will be a process that is transparent and accountable, and one that can give confidence to people that they are going to move down the road that has been promised.
But we don't know yet. It's too early, and we're going to watch very, very closely, and make judgments as we go forward. And we remain hopeful -- though not yet certain -- that the right steps will be taken. And the proof will be in the actions that are taken not just today, in the referendum, but in the days ahead. And we intend to watch very, very closely.
With respect to Israel, Prime Minister Netanyahu and I talk regularly, and we are both very committed to moving the process forward. And we just can't let one set of comments undermine that effort, and I don't intend to. Yesterday, when I was in Rome, meeting with the Foreign Secretary of the Holy See, and preparing for the Donors' Conference here today, we kept focused on what we're trying to do to move forward. Everywhere I go, even here today, everybody I talk to expressed gratitude for the efforts the United States is making for President Obama's commitment to try to make peace between Palestinians and Israelis. And we all know the very, very difficult choice in trying to deal with that. The process is hard. And we've always known that, as we approach the time for these difficult choices, it's going to be difficult. I mean there are hard choices to be made.
So, we're going to work with both sides. I will work with the willing participants who are committed to peace, and committed to this process. And after five months of negotiations, I believe strongly in the prospects for peace, and I know that the status quo is not sustainable. So we will continue to work, and I will work undeterred.
Thank you all very much. Appreciate it.
Press Availability at the Syria Donors' Conference
Press Availability
John Kerry
Secretary of State
Bayan Palace
Kuwait City, Kuwait
January 15, 2014
SECRETARY KERRY: Well, good afternoon. Thanks for being patient and waiting to have a chance to share some thoughts about both today and other issues that may be on your minds.
It was really heartening to take part in this conference here today and see the level of concern, but also the growing level of support for what has to be done in Syria. And I think that it's very key for all of us to maintain a united resolve, a shared resolve in the days to come, both in providing humanitarian relief, but also in pressing for the political solution. As I said earlier today, there is just no joy in a repeated conference to continue to be forced in conscience to support a growing number of refugees, when we really need to undo the underlying cause of the creation of those refugees. And so, it is critical for all of us to be laser beam-focused on finding that political solution and ending the violence all together, once and for all.
We are very grateful to Secretary General Ban Ki-moon for convening this today, and for his direction of significant focus, as well as resources, into this. And I want to thank again his Highness Sheikh Sabah Al Ahmed Al Jaber Al Sabah, for bringing everybody together and providing these extraordinary facilities for people to be able to act.
The human toll of this crisis is really clear for everybody to see now, almost to the point where the repetition of the numbers -- when you say 130,000 lives have been lost, there is a numbness that sets in, and it's hard for people to relate to what that really means on a daily basis, in terms of violence on the ground, disrupted families, loss of life. And you begin to get a better sense of that when you see it graphically, as we did in pictures and film today. What I saw, personally, at the Za’atari camp in Jordan really left an imprint on me in terms of not only the frustration and even anger that people there felt, because they don't see their lives changing and they don't see the crisis ending, but also the frustration that I felt with the global power gridlock on trying to do something that really meets the level of the challenge. And in the faces of those refugees, as well as in their numbers, there is a level of pain and a level of suffering that everybody in the world ought to share in some way, but which really demands a much greater response than has been provided yet by the community of nations.
So, I am proud that the United States of America is leading the charge, not only with respect to a response to the refugees, but also to try to end the creation of the refugees. And we today provided an additional -- through the grace of the American people -- another $380 million that brings our total to about 1.7 billion that we have provided -- the leading nation in the effort to try to deal with this crisis.
Now, some of our support will help Syrians immediately as they cope with one of the cruelest winters on record. And with our contributions today, we are providing, specifically, fuel for heating and cooking, we are providing thermal blankets and other critical winter supplies for tens of thousands of people.
In addition, we are also investing and meeting the longer-term needs of Syria's neighbors. After providing generous support for refugees for three years, to Lebanon, Turkey, and Jordan, who are all now under strain that I talked about earlier today, we also want to make sure that these nations are able to keep their hospitals and their schools up and running, and their economies growing, as they witness these enormous numbers of people, and particularly young children, coming into their societies. So that's why we contributed an additional $78 million in assistance for refugees living in Lebanon today, and we are delivering support to UN agencies and partners so that children will be able to see a doctor or go to school. You saw photos of kids in school. We are also trying to provide assistance so that parents will be able to pay rent and put a roof over their heads. Otherwise, we run the risk that abject poverty is going to become another threat to Lebanon’s sovereignty and stability.
We are also providing an additional $61 million in assistance to refugees in Jordan, where we see too many Syrian boys and girls who are now working at jobs in their teens -- low teens, some of them -- rather than being in school, learning and growing. Contributions from the United States have already helped to place 80 percent of Syrian refugee children in classrooms across Jordan. That's an extraordinary accomplishment, and something that Americans ought to be very proud of. But it also means there are still 30,000 children who are not in school. So our support today will ensure that many of these boys and girls are no longer going to be denied their childhood right to an education.
Now, some of the more than $30 million that we committed to refugees in Turkey today will also fund schooling and support children who are traumatized by war. We obviously are not able to wipe away the horror of some of the things these kids have seen and lived through, but what we can do is help to provide them with a future brighter than the life they live today, and we can do that with funding for things like teacher training, educational materials, and quality medical care, all of which is designated in the funding that we are providing.
All of the additional support that the United States announced today, whether in Syria, Turkey, Lebanon, or Jordan, in the wider region, is vital to security now, and it's absolutely essential for the region's next generation.
For many of the six-and-a-half million men and women who are displaced within Syria, some
of the contributions made on their behalf today will obviously not matter if it can’t reach them. So, access is critical. And the refusal of humanitarian access by both the regime and elements of the opposition is an outrage. We believe firmly that this is an affront to human dignity, and we are going to continue to find ways to raise the profile of this issue, so people understand it. Access is critical. And the Assad regime needs to provide that access.
In Paris this weekend, Foreign Minister Lavrov and I discussed what we can do, working with the International Committee of the Red Cross and others, to deliver humanitarian aid to besieged areas. And earlier this morning in the general gathering, I had a chance to meet with the president and director of the Red Cross, International Red Cross, who had just come back from Damascus, where they are engaged in discussions, and they told me firsthand how they get an agreement from one agency, and then they go to the other to have that agreement carried out, and the other agency takes it away. So they have told me personally stories of how they will have an agreed-upon access set up, and then the day comes along where the convoy is going to deliver the goods, and they say, "No, it's too insecure today, and you can't go," and they shut it down. And so, this excuse, this process, is a calculated, designed process by the Assad regime to deny people, as a matter of a weapon of war, the access that they have a right to for the delivery of these goods. And one of the things that I am determined to do coming out of here, is make certain that we hold them accountable. And this will clearly be a subject of discussion going into the Geneva meetings.
We also need to see a more positive climate for these talks. And my hopes are that in the next days, with a visit of Foreign Minister Muallem to Moscow, and with other efforts, that we will be able to secure from the Assad regime the steps necessary for a ceasefire in whatever number of places that might be able to be achieved. And we will continue to press for that. I will be talking with Foreign Minister Lavrov later today on the return trip home in order to see what progress we can make there.
So, a lot of nations, including the United States, made generous contributions today, or pledges for those contributions. But the greatest single pledge that our nations can make is to work together and commit to the hard work of diplomacy, in order to bring an end to this endless cycle of creating of refugees and of loss of life. And to put a stopper to the suffering and to end this crisis once and for all, we need to find a political solution. And we will remain committed to that effort.
I would be happy to take any questions at this point.
MODERATOR: The first question will be from (inaudible) of Reuters.
QUESTION: Thank you very much. Mr. Secretary, you just talked about holding Assad accountable concerning humanitarian access, and you talked earlier today (inaudible) about the need for them to stop (inaudible) other atrocities. But what are the specific consequences for Assad if he doesn't do this? Given President Obama's decision not to use force or to support outside force in Syria, how seriously do you think he takes your threats?
And a quick follow-up question. There is a report in the BBC today quoting Syria's deputy foreign minister saying some Western security officials have actually been in touch with the Damascus government to coordinate or talk about the threat of Islamic extremism. Is there any truth to that?
SECRETARY KERRY: I don't know anything about that. Certainly not under my auspices have there been any outreach or contact with that respect -- with that regard.
With respect to the issue of consequences, as I said previously, we are reviewing, in the State Department, a whole set of different options with respect to how to have a greater impact with respect to the humanitarian crisis, so that we're not simply standing up like this and talking about it. But those options are not yet ready for prime time. Our team is working on them, we're looking at how we might be able to have a greater impact directly on this issue of direct humanitarian access.
And with respect to the consequences, there are a number of different options. But, obviously, paramount among them is the fact that in London the London 11 nations committed in the communique to hold anybody who violates international laws with respect to the conduct of war or conflict accountable. And there are plenty of international organizations that are available through which to move to do that. And there are nations ready and willing to begin to bring those kinds of actions and complaints, should it be necessary.
So, I think President Assad needs to understand, and the people around him need to understand, that accountability goes on for some period of time. And there are people today paying the price in the Hague and elsewhere for their choices. So we are not without options, but we are working on some more immediate, and we will see where we are with respect to those choices when the time is right.
MODERATOR: The last question will be from (inaudible):
QUESTION: Thank you very much, Mr. Secretary. My question is really on Israel. Mr. Secretary, were you pleasantly shocked or upset by the comments made by the Israeli Defense Minister in this serious diplomatic role between Israel and the United States? Is it not a sign of a lack of confidence between the two allies? And is it not a sign of serious disagreements for the security plan and framework agreement you are working on?
And finally, on Egypt, could we have your position on the referendum which could lead to presidential (inaudible) by General al-Sisi.
SECRETARY KERRY: What was that last part, again?
QUESTION: Sorry, the --
SECRETARY KERRY: On Egypt.
QUESTION: The referendum could lead to presidential bid by General al-Sisi.
SECRETARY KERRY: Oh. Well, I'm -- let me take the second part, first. I'm not going to comment on the outcome with respect to Egypt yet, or what may or may not happen politically, because they're in the midst of this process even today. And our hope is that it will be a process that is transparent and accountable, and one that can give confidence to people that they are going to move down the road that has been promised.
But we don't know yet. It's too early, and we're going to watch very, very closely, and make judgments as we go forward. And we remain hopeful -- though not yet certain -- that the right steps will be taken. And the proof will be in the actions that are taken not just today, in the referendum, but in the days ahead. And we intend to watch very, very closely.
With respect to Israel, Prime Minister Netanyahu and I talk regularly, and we are both very committed to moving the process forward. And we just can't let one set of comments undermine that effort, and I don't intend to. Yesterday, when I was in Rome, meeting with the Foreign Secretary of the Holy See, and preparing for the Donors' Conference here today, we kept focused on what we're trying to do to move forward. Everywhere I go, even here today, everybody I talk to expressed gratitude for the efforts the United States is making for President Obama's commitment to try to make peace between Palestinians and Israelis. And we all know the very, very difficult choice in trying to deal with that. The process is hard. And we've always known that, as we approach the time for these difficult choices, it's going to be difficult. I mean there are hard choices to be made.
So, we're going to work with both sides. I will work with the willing participants who are committed to peace, and committed to this process. And after five months of negotiations, I believe strongly in the prospects for peace, and I know that the status quo is not sustainable. So we will continue to work, and I will work undeterred.
Thank you all very much. Appreciate it.
GSA ADMINISTRATOR TESTIFIES ON GOVERNMENT TRAVEL AND CONFERENCE SPENDING
FROM: GENERAL SERVICES ADMINISTRATION
Examining Conference and Travel Spending Across the Federal Government
Senate Committee on Homeland Security and Governmental Affairs
“Examining Conference and Travel Spending Across the Federal Government”
January 14, 2014
Good morning Chairman Carper, Doctor Coburn, and Members of the Committee. My name is Dan Tangherlini, and I am the Administrator of the U.S. General Services Administration (GSA).
GSA’s mission is to deliver the best value in real estate, acquisition, and technology services to Government and the American people. GSA’s travel policies reflect this mission. GSA instituted internal travel and conference policies that reduce costs, provide strong oversight, and ensure that travel only occurs when necessary. Additionally, as part of GSA’s mission to serve our Federal partners and reduce costs, we are providing tools that assist agencies to better manage their travel and conference spending.
GSA’s Policies –
GSA has rigorous controls and oversight mechanisms to ensure that all proposed travel and conference expenses are cost-effective, serve legitimate mission needs, and have appropriate levels of review.
Travel can only be approved when all other alternatives, including video-conferencing, teleconferencing, and webinars have been considered. Additionally, travel must be for work related to GSA’s essential mission, such as building inspections. To ensure all travel requests received appropriate review, GSA has instituted policies that limit the use of blanket authorizations and require that travel is authorized in advance on a trip-by-trip basis.
Conferences require submission of a detailed justification, a proposed budget, and review and approval from multiple divisions. At a minimum, this means any conference, no matter the proposed cost, is reviewed both by the head of the relevant division and GSA’s Chief Administrative Services Officer (CASO). In line with Administration policies, when the proposed cost of a conference is more than $100,000, the Deputy Administrator must approve it. Conferences over $500,000 are prohibited unless I approve them and document the justification for why they must be held. Even attendance at a conference requires multiple layers of approval. Employees must submit for approval a justification for their attendance and an estimate of their expenses.
GSA requires online training regarding conference attendance for GSA employees. This training highlights GSA’s important policy of considering cost-effective alternatives like teleconferencing, and ensures every employee understands the difference between appropriate and inappropriate expenses. Employees receive training regarding the Federal Travel Regulation, ensuring better compliance. GSA has also presented the conference training to other agencies to either incorporate into their own training courses or to use our web capability for their own agency use.
In line with the Administration’s policies, GSA also has improved transparency into conference expenses. We post all approved, agency-sponsored conferences with a cost of over $100,000 on a publicly available website that includes the budget and a justification for why the conference was held. In Fiscal Year (FY) 2013, GSA held no conference above that amount.
All told, these policies have dramatically reduced costs, improved oversight, and made certain that travel and conference expenses are fully justified and mission-related. In Fiscal Years 2012 and 2013, GSA saved in total more than $68 million in nonessential travel and transportation costs.1
Government-Wide Efforts –
This Administration has been clear about the need to cut wasteful spending and increase efficiency. Executive Order 13589, “Promoting Efficient Spending,” directs agencies to cut waste in Federal Government spending and identify opportunities to promote efficient and effective spending, including a reduction in conference and travel costs. OMB Memorandum M-12-12, “Promoting Efficient Spending to Support Agency Operations,” implements the executive order, and provides policies and practices to achieve these efficiencies. Among other items, this Memorandum directs agencies to require the approval of senior officials for conferences with expenses over $100,000, prohibit conferences with expenses of more than $500,000 (unless the agency’s head provides a waiver finding that exceptional circumstances exist whereby spending in excess of $500,000 on a single conference is the most cost-effective option to achieve a mission goal), and increase transparency by reporting these costs publicly.
To further these efforts Government-wide, GSA has identified ways we can assist agencies by providing tools to help them better manage their travel and conference costs. For example, to help agencies prioritize use of Federally-owned space, GSA has created an online tool known as “Federal Meeting Facilities,”2 which identifies Federal agencies that have conference and meeting space for agencies’ use. Conducting 1 Compared to an FY 2010 baseline.
2 “Federal Meeting Facilities.” U.S. General Services Administration. February 2013. U.S. General Services Administration. February 2013. http://fedmeetingspace.cfo.gov. business and hosting conferences in space controlled by the Federal Government is one way to reduce travel and related costs. The tool allows agencies to search and sort through a variety of different offerings, with contact information for the agency point of contact to work with to secure the space.
Additionally, GSA’s E-Gov Travel Service 2 (ETS2) will further consolidate online travel booking services, driving additional cost-savings and efficiencies, while delivering improved accountability and reducing waste. ETS2 will adhere to regulations and support policy for conference travel spending reporting and other travel related activities, in order to both meet the requirements of OMB and provide greater transparency for customer agencies.
GSA is also utilizing data to allow agencies to make more informed decisions about where to host conferences, when they are determined to be necessary to their mission. GSA’s Conference Planning Tool compares potential destinations by major cost drivers, such as contract airfare and per diem rates, enabling agencies to make data-backed decisions on where conferences should be held. GSA is training administrative officers in over 20 Federal agencies on how to identify low cost destinations and venues for conferences and meetings.
Additionally, GSA eliminated what was known as the conference lodging allowance. Previously, this permitted travelers attending a conference to exceed the maximum lodging per diem rate by up to 25 percent, if staying at the site of the conference, when authorized.
Finally, GSA is interested in finding ways to further reduce the Government’s travel costs long-term. In FY 2012, GSA formed the Government-Wide Travel Advisory Committee (GTAC). The GTAC’s purpose is to review existing travel policies, processes, and procedures to determine ways agencies can achieve their mission-related travel needs in an effective and efficient manner at the lowest possible cost. To ensure we received input from all relevant stakeholders, the Committee’s members were chosen from the travel industry, Federal, State and local governments, travel and convention bureaus, and representatives from corporations. The GTAC has been providing advice and recommendations for improvements to increase travel efficiency and effectiveness, reduce costs, and incorporate industry best practices. To ensure transparency on how recommendations have been formulated, Committee business is posted publicly, in line with the rules for Federal Advisory Committees. The GTAC worked in partnership with industry to formally review and endorse GSA’s methodology for determining Federal per diem rates, which we used to adjust FY 2014 rates.
In sum, GSA believes that these Government-wide efforts will result in significant savings for the Federal government and the American people.
Conclusion –
The Administration is focused on improving the effectiveness and efficiency of Government, including reducing travel and conference costs. GSA is committed to helping with those efforts. GSA has rigorous internal policies, provides tools to other agencies to help them make more informed travel and conference spending decisions, and is working on broader reforms and programs that would result in greater savings long-term.
Examining Conference and Travel Spending Across the Federal Government
Senate Committee on Homeland Security and Governmental Affairs
“Examining Conference and Travel Spending Across the Federal Government”
January 14, 2014
Good morning Chairman Carper, Doctor Coburn, and Members of the Committee. My name is Dan Tangherlini, and I am the Administrator of the U.S. General Services Administration (GSA).
GSA’s mission is to deliver the best value in real estate, acquisition, and technology services to Government and the American people. GSA’s travel policies reflect this mission. GSA instituted internal travel and conference policies that reduce costs, provide strong oversight, and ensure that travel only occurs when necessary. Additionally, as part of GSA’s mission to serve our Federal partners and reduce costs, we are providing tools that assist agencies to better manage their travel and conference spending.
GSA’s Policies –
GSA has rigorous controls and oversight mechanisms to ensure that all proposed travel and conference expenses are cost-effective, serve legitimate mission needs, and have appropriate levels of review.
Travel can only be approved when all other alternatives, including video-conferencing, teleconferencing, and webinars have been considered. Additionally, travel must be for work related to GSA’s essential mission, such as building inspections. To ensure all travel requests received appropriate review, GSA has instituted policies that limit the use of blanket authorizations and require that travel is authorized in advance on a trip-by-trip basis.
Conferences require submission of a detailed justification, a proposed budget, and review and approval from multiple divisions. At a minimum, this means any conference, no matter the proposed cost, is reviewed both by the head of the relevant division and GSA’s Chief Administrative Services Officer (CASO). In line with Administration policies, when the proposed cost of a conference is more than $100,000, the Deputy Administrator must approve it. Conferences over $500,000 are prohibited unless I approve them and document the justification for why they must be held. Even attendance at a conference requires multiple layers of approval. Employees must submit for approval a justification for their attendance and an estimate of their expenses.
GSA requires online training regarding conference attendance for GSA employees. This training highlights GSA’s important policy of considering cost-effective alternatives like teleconferencing, and ensures every employee understands the difference between appropriate and inappropriate expenses. Employees receive training regarding the Federal Travel Regulation, ensuring better compliance. GSA has also presented the conference training to other agencies to either incorporate into their own training courses or to use our web capability for their own agency use.
In line with the Administration’s policies, GSA also has improved transparency into conference expenses. We post all approved, agency-sponsored conferences with a cost of over $100,000 on a publicly available website that includes the budget and a justification for why the conference was held. In Fiscal Year (FY) 2013, GSA held no conference above that amount.
All told, these policies have dramatically reduced costs, improved oversight, and made certain that travel and conference expenses are fully justified and mission-related. In Fiscal Years 2012 and 2013, GSA saved in total more than $68 million in nonessential travel and transportation costs.1
Government-Wide Efforts –
This Administration has been clear about the need to cut wasteful spending and increase efficiency. Executive Order 13589, “Promoting Efficient Spending,” directs agencies to cut waste in Federal Government spending and identify opportunities to promote efficient and effective spending, including a reduction in conference and travel costs. OMB Memorandum M-12-12, “Promoting Efficient Spending to Support Agency Operations,” implements the executive order, and provides policies and practices to achieve these efficiencies. Among other items, this Memorandum directs agencies to require the approval of senior officials for conferences with expenses over $100,000, prohibit conferences with expenses of more than $500,000 (unless the agency’s head provides a waiver finding that exceptional circumstances exist whereby spending in excess of $500,000 on a single conference is the most cost-effective option to achieve a mission goal), and increase transparency by reporting these costs publicly.
To further these efforts Government-wide, GSA has identified ways we can assist agencies by providing tools to help them better manage their travel and conference costs. For example, to help agencies prioritize use of Federally-owned space, GSA has created an online tool known as “Federal Meeting Facilities,”2 which identifies Federal agencies that have conference and meeting space for agencies’ use. Conducting 1 Compared to an FY 2010 baseline.
2 “Federal Meeting Facilities.” U.S. General Services Administration. February 2013. U.S. General Services Administration. February 2013. http://fedmeetingspace.cfo.gov. business and hosting conferences in space controlled by the Federal Government is one way to reduce travel and related costs. The tool allows agencies to search and sort through a variety of different offerings, with contact information for the agency point of contact to work with to secure the space.
Additionally, GSA’s E-Gov Travel Service 2 (ETS2) will further consolidate online travel booking services, driving additional cost-savings and efficiencies, while delivering improved accountability and reducing waste. ETS2 will adhere to regulations and support policy for conference travel spending reporting and other travel related activities, in order to both meet the requirements of OMB and provide greater transparency for customer agencies.
GSA is also utilizing data to allow agencies to make more informed decisions about where to host conferences, when they are determined to be necessary to their mission. GSA’s Conference Planning Tool compares potential destinations by major cost drivers, such as contract airfare and per diem rates, enabling agencies to make data-backed decisions on where conferences should be held. GSA is training administrative officers in over 20 Federal agencies on how to identify low cost destinations and venues for conferences and meetings.
Additionally, GSA eliminated what was known as the conference lodging allowance. Previously, this permitted travelers attending a conference to exceed the maximum lodging per diem rate by up to 25 percent, if staying at the site of the conference, when authorized.
Finally, GSA is interested in finding ways to further reduce the Government’s travel costs long-term. In FY 2012, GSA formed the Government-Wide Travel Advisory Committee (GTAC). The GTAC’s purpose is to review existing travel policies, processes, and procedures to determine ways agencies can achieve their mission-related travel needs in an effective and efficient manner at the lowest possible cost. To ensure we received input from all relevant stakeholders, the Committee’s members were chosen from the travel industry, Federal, State and local governments, travel and convention bureaus, and representatives from corporations. The GTAC has been providing advice and recommendations for improvements to increase travel efficiency and effectiveness, reduce costs, and incorporate industry best practices. To ensure transparency on how recommendations have been formulated, Committee business is posted publicly, in line with the rules for Federal Advisory Committees. The GTAC worked in partnership with industry to formally review and endorse GSA’s methodology for determining Federal per diem rates, which we used to adjust FY 2014 rates.
In sum, GSA believes that these Government-wide efforts will result in significant savings for the Federal government and the American people.
Conclusion –
The Administration is focused on improving the effectiveness and efficiency of Government, including reducing travel and conference costs. GSA is committed to helping with those efforts. GSA has rigorous internal policies, provides tools to other agencies to help them make more informed travel and conference spending decisions, and is working on broader reforms and programs that would result in greater savings long-term.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 14, 2014
FROM: DEFENSE DEPARTMENT
DEFENSE LOGISTICS AGENCY
Pacsgear, Inc.,* Pleasanton, Calif., has been awarded a maximum $30,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for radiology systems, subsystems, accessories, service, manual, and repair/spare parts. This contract is a competitive acquisition, and there were fifty offers received. This is a one-year base contract with four one-year option periods. Location of performance is California with a Jan. 13, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D1-14-D-0003).
Robin Industries, Inc., Independence, Ohio, has been awarded a maximum $10,694,880 firm-fixed-price contract for vehicle track shoe assemblies. This contract is a competitive acquisition and there were two offers received. This is a one-year base contract with one option period. Locations of performance are Ohio and Texas with a Nov. 14, 2014 performance completion date. Using military service is Army. Type of appropriation is fiscal year 2014 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Mich., (SPRDL1-14-C-0027).
Esaote North America, Inc., Indianapolis, Ind., has been awarded a maximum $7,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for radiology systems, subsystems, accessories, services, manual, and repair parts. This contract is a competitive acquisition and there were fifty offers received. This is a one-year base contract with four one-year option periods. Location of performance is Indiana with a Jan. 13, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D1-14-D-0002).
ARMY
Stanley Consultants, Inc., Muscatine, Iowa was awarded a $60,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity foreign military sales contract for general and design architect-engineer services for U.S. Central Command. Funds and work performance location will be determined with each order. Estimated completion date is Jan 13, 2019. Bids were solicited via the Internet with twenty received. Army Corps of Engineers, Winchester, Va., is the contracting activity (W912ER-14-D-0001).
Baker-AECOM (joint venture), Moon Township, Pa. was awarded a $60,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity foreign military sales contract for general and design architect-engineer services for U.S. Central Command. Funds and work performance location will be determined with each order. Estimated completion date is Jan 13, 2019. Bids were solicited via the Internet with twenty received. Army Corps of Engineers, Winchester, Va. is the contracting activity (W912ER-14-D-0002).
Alutiiq Diversified Services, LLC, Anchorage, Alaska was awarded a $6,989,861 firm-fixed-price bridge contract for Redstone Information Technology Services to maintain operational continuity until the selection board has evaluated contractor proposals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $25,774 were obligated at the time of the award. Work will be performed in Huntsville, Ala. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity (W9124P-14-C-0023).
NAVY
Bechtel Plant Machinery Inc., Monroeville, Pa., is being awarded a $593,104,854 cost-plus-fixed-fee contract for naval nuclear propulsion components. Work will be performed in Monroeville, Pa. (66 percent), and Schenectady, N.Y. (34 percent). No completion date or additional information is provided on naval nuclear propulsion program contracts. Fiscal 2014 shipbuilding and conversion, Navy contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-14-C-2101).
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $15,000,000 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4308) to provide non-nuclear submarine repair work on Groton-based submarines under the New England Maintenance Manpower Initiative (NEMMI). Under the terms of the contract, Electric Boat will provide NEMMI tasks in support of non-nuclear maintenance, modernization and repair of operational nuclear powered submarines, floating dry docks, support and service craft and plant equipment assigned to the Naval Submarine Support Facility, New London, Conn. Work will be performed in New London, Conn., and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $15,000,000 will be obligated at time of award, and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-13-C-4308).
Lockheed Martin Mission Systems and Training, Manassas, Va., is being awarded an $8,863,977 cost-plus-incentive-fee modification to previously awarded contract (N00024-09-C-6247) for the production of Technical Insertion 14 (TI-14) Integrated Submarine Imaging Systems (ISIS) and spares. The ISIS provides mission critical, all weather, visual, and electronic search, digital image management, indication, warning, and platform architecture interface capabilities. Work will be performed in Johnstown, Pa. (46 percent), Manassas, Va. (26 percent), Northampton, Mass. (17 percent), and Chantilly, Va. (11 percent), and is expected to be completed by March 2017. Fiscal 2013 and 2014 shipbuilding and conversion, Navy and Fiscal 2014 other procurement, Navy contract funds in the amount of $8,863,977 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
DEFENSE ADVANCED RESEARCH PROJECTS AGENCY
Agentase LLC, Pittsburgh, Pa., has been awarded an $11,206,720 cost contract. The work will support the DARPA’s In Vivo Nanoplatforms program (IVN). IVN seeks to develop new classes of adaptable nanoparticles for persistent, distributed, unobtrusive physiologic and environmental sensing as well as the treatment of physiologic abnormalities, illness and infectious disease. Work will be performed in Pittsburgh, Pa., (44.59 percent); Cambridge, Mass., (8.04 percent); Davis, Calif., (40.92 percent) and College Station, Texas, (6.45 percent). The estimated completion date is April 14, 2015. Fiscal 2013 research and development funds are being obligated at time of award. The contracting activity is DARPA, Arlington, Va., (HR0011-14-C-0030).
*Small Business
DEFENSE LOGISTICS AGENCY
Pacsgear, Inc.,* Pleasanton, Calif., has been awarded a maximum $30,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for radiology systems, subsystems, accessories, service, manual, and repair/spare parts. This contract is a competitive acquisition, and there were fifty offers received. This is a one-year base contract with four one-year option periods. Location of performance is California with a Jan. 13, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D1-14-D-0003).
Robin Industries, Inc., Independence, Ohio, has been awarded a maximum $10,694,880 firm-fixed-price contract for vehicle track shoe assemblies. This contract is a competitive acquisition and there were two offers received. This is a one-year base contract with one option period. Locations of performance are Ohio and Texas with a Nov. 14, 2014 performance completion date. Using military service is Army. Type of appropriation is fiscal year 2014 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Mich., (SPRDL1-14-C-0027).
Esaote North America, Inc., Indianapolis, Ind., has been awarded a maximum $7,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for radiology systems, subsystems, accessories, services, manual, and repair parts. This contract is a competitive acquisition and there were fifty offers received. This is a one-year base contract with four one-year option periods. Location of performance is Indiana with a Jan. 13, 2015 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE2D1-14-D-0002).
ARMY
Stanley Consultants, Inc., Muscatine, Iowa was awarded a $60,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity foreign military sales contract for general and design architect-engineer services for U.S. Central Command. Funds and work performance location will be determined with each order. Estimated completion date is Jan 13, 2019. Bids were solicited via the Internet with twenty received. Army Corps of Engineers, Winchester, Va., is the contracting activity (W912ER-14-D-0001).
Baker-AECOM (joint venture), Moon Township, Pa. was awarded a $60,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity foreign military sales contract for general and design architect-engineer services for U.S. Central Command. Funds and work performance location will be determined with each order. Estimated completion date is Jan 13, 2019. Bids were solicited via the Internet with twenty received. Army Corps of Engineers, Winchester, Va. is the contracting activity (W912ER-14-D-0002).
Alutiiq Diversified Services, LLC, Anchorage, Alaska was awarded a $6,989,861 firm-fixed-price bridge contract for Redstone Information Technology Services to maintain operational continuity until the selection board has evaluated contractor proposals. Fiscal 2014 operations and maintenance (Army) funds in the amount of $25,774 were obligated at the time of the award. Work will be performed in Huntsville, Ala. Army Contracting Command, Redstone Arsenal, Ala. is the contracting activity (W9124P-14-C-0023).
NAVY
Bechtel Plant Machinery Inc., Monroeville, Pa., is being awarded a $593,104,854 cost-plus-fixed-fee contract for naval nuclear propulsion components. Work will be performed in Monroeville, Pa. (66 percent), and Schenectady, N.Y. (34 percent). No completion date or additional information is provided on naval nuclear propulsion program contracts. Fiscal 2014 shipbuilding and conversion, Navy contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-14-C-2101).
General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $15,000,000 cost-plus-fixed-fee modification to previously awarded contract (N00024-13-C-4308) to provide non-nuclear submarine repair work on Groton-based submarines under the New England Maintenance Manpower Initiative (NEMMI). Under the terms of the contract, Electric Boat will provide NEMMI tasks in support of non-nuclear maintenance, modernization and repair of operational nuclear powered submarines, floating dry docks, support and service craft and plant equipment assigned to the Naval Submarine Support Facility, New London, Conn. Work will be performed in New London, Conn., and is expected to be completed by December 2014. Fiscal 2014 operations and maintenance, Navy contract funds in the amount of $15,000,000 will be obligated at time of award, and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-13-C-4308).
Lockheed Martin Mission Systems and Training, Manassas, Va., is being awarded an $8,863,977 cost-plus-incentive-fee modification to previously awarded contract (N00024-09-C-6247) for the production of Technical Insertion 14 (TI-14) Integrated Submarine Imaging Systems (ISIS) and spares. The ISIS provides mission critical, all weather, visual, and electronic search, digital image management, indication, warning, and platform architecture interface capabilities. Work will be performed in Johnstown, Pa. (46 percent), Manassas, Va. (26 percent), Northampton, Mass. (17 percent), and Chantilly, Va. (11 percent), and is expected to be completed by March 2017. Fiscal 2013 and 2014 shipbuilding and conversion, Navy and Fiscal 2014 other procurement, Navy contract funds in the amount of $8,863,977 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
DEFENSE ADVANCED RESEARCH PROJECTS AGENCY
Agentase LLC, Pittsburgh, Pa., has been awarded an $11,206,720 cost contract. The work will support the DARPA’s In Vivo Nanoplatforms program (IVN). IVN seeks to develop new classes of adaptable nanoparticles for persistent, distributed, unobtrusive physiologic and environmental sensing as well as the treatment of physiologic abnormalities, illness and infectious disease. Work will be performed in Pittsburgh, Pa., (44.59 percent); Cambridge, Mass., (8.04 percent); Davis, Calif., (40.92 percent) and College Station, Texas, (6.45 percent). The estimated completion date is April 14, 2015. Fiscal 2013 research and development funds are being obligated at time of award. The contracting activity is DARPA, Arlington, Va., (HR0011-14-C-0030).
*Small Business
REMARKS BY SECRETARY KERRY, LEBANESE PRIME MINISTER MIKATI
FROM STATE DEPARTMENT
Remarks With Lebanese Prime Minister Mikati Before Their Meeting
Remarks
John Kerry
Secretary of State
Bayan Palace
Kuwait City, Kuwait
January 15, 2014
SECRETARY KERRY: I just want to say what a pleasure it is to meet with the Prime Minister. And I want to make it clear that President Obama and the United States stand very firmly behind our friends in Lebanon. The challenge of Lebanon is enormous; they have 870,000 refugees, and they are really feeling the spillover effects of the violence in Syria.
So, today, the United States will be providing an additional $76 million, which is the largest amount we have put in directly into Lebanon for the refugee challenge. In addition to that, we will continue to work very directly with the Lebanese armed forces and their ability to be able to stand up against the sectarian violence that is ripping apart Lebanon yet again. This is not new. So, we admire the efforts to put together a government, but we are very clear that that government needs to not provide an opportunity for legitimization of any terrorist organization or violence within Lebanon. We know it's very difficult, nothing is easy there.
But, Mr. Prime Minister, we are very much sympathetic to the challenges you are facing, and very sorry for the violence that stole a very good man, Mohamad Chatah. So we are here to help.
PRIME MINISTER MIKATI: Thank you.
SECRETARY KERRY: And I look forward to our conversation.
PRIME MINISTER MIKATI: (Inaudible) for the financial support for the Syrian refugees in Lebanon, and because I know the full support of Mr. Obama Administration to Lebanon since I've been in power, always supporting, recognizing what we are doing. And now yourself, Mr. Secretary, what you are doing for the whole peace process in the Middle East is very important, either about Iranian issue or about the Palestinian-Israeli issue, which we put and we press on your hand to proceed and to have it as soon as possible.
SECRETARY KERRY: Thank you.
PRIME MINISTER MIKATI: Thank you.
SECRETARY KERRY: Thank you very much.
Remarks With Lebanese Prime Minister Mikati Before Their Meeting
Remarks
John Kerry
Secretary of State
Bayan Palace
Kuwait City, Kuwait
January 15, 2014
SECRETARY KERRY: I just want to say what a pleasure it is to meet with the Prime Minister. And I want to make it clear that President Obama and the United States stand very firmly behind our friends in Lebanon. The challenge of Lebanon is enormous; they have 870,000 refugees, and they are really feeling the spillover effects of the violence in Syria.
So, today, the United States will be providing an additional $76 million, which is the largest amount we have put in directly into Lebanon for the refugee challenge. In addition to that, we will continue to work very directly with the Lebanese armed forces and their ability to be able to stand up against the sectarian violence that is ripping apart Lebanon yet again. This is not new. So, we admire the efforts to put together a government, but we are very clear that that government needs to not provide an opportunity for legitimization of any terrorist organization or violence within Lebanon. We know it's very difficult, nothing is easy there.
But, Mr. Prime Minister, we are very much sympathetic to the challenges you are facing, and very sorry for the violence that stole a very good man, Mohamad Chatah. So we are here to help.
PRIME MINISTER MIKATI: Thank you.
SECRETARY KERRY: And I look forward to our conversation.
PRIME MINISTER MIKATI: (Inaudible) for the financial support for the Syrian refugees in Lebanon, and because I know the full support of Mr. Obama Administration to Lebanon since I've been in power, always supporting, recognizing what we are doing. And now yourself, Mr. Secretary, what you are doing for the whole peace process in the Middle East is very important, either about Iranian issue or about the Palestinian-Israeli issue, which we put and we press on your hand to proceed and to have it as soon as possible.
SECRETARY KERRY: Thank you.
PRIME MINISTER MIKATI: Thank you.
SECRETARY KERRY: Thank you very much.
WHITE HOUSE STATEMENT REGARDING IRANIAN HONORS TO HEZBOLLAH OFFICIAL
FROM: THE WHITE HOUSE
Statement by NSC Spokesperson Caitlin Hayden on Iranian Foreign Minister Zarif Honoring Lebanese Hezbollah Official
The United States condemns the decision taken by Iranian Foreign Minister Mohammad Javad Zarif Khonsari to place a wreath at the grave of Imad Mugniyah, a former leader of Lebanese Hezbollah responsible for heinous acts of terrorism that killed hundreds of innocent people, including Americans. The inhumane violence that Mugniyah perpetrated – and that Lebanese Hezbollah continues to perpetrate in the region with Iran's financial and material support -- has had profoundly destabilizing and deadly effects for Lebanon and the region.
The decision to commemorate an individual who has participated in such vicious acts, and whose organization continues to actively support terrorism worldwide, sends the wrong message and will only exacerbate tensions in the region.
Statement by NSC Spokesperson Caitlin Hayden on Iranian Foreign Minister Zarif Honoring Lebanese Hezbollah Official
The United States condemns the decision taken by Iranian Foreign Minister Mohammad Javad Zarif Khonsari to place a wreath at the grave of Imad Mugniyah, a former leader of Lebanese Hezbollah responsible for heinous acts of terrorism that killed hundreds of innocent people, including Americans. The inhumane violence that Mugniyah perpetrated – and that Lebanese Hezbollah continues to perpetrate in the region with Iran's financial and material support -- has had profoundly destabilizing and deadly effects for Lebanon and the region.
The decision to commemorate an individual who has participated in such vicious acts, and whose organization continues to actively support terrorism worldwide, sends the wrong message and will only exacerbate tensions in the region.
THE MISSOURI RIVER AS SEEN FROM SPACE
The Missouri River rises in the Rocky Mountains of western Montana, and flows generally to the southeast for 3,767 kilometers (2,341 miles) to its confluence with the Mississippi River north of St. Louis, Missouri. It is the longest river in North America. The river does not follow a straight southeasterly course along this distance, but includes many meander bends such as the one in this astronaut photograph from the International Space Station. This particular bend is occupied by Lake Sharpe, an approximately 130 kilometer (80 mile) long reservoir formed behind the Big Bend Dam on the Missouri River near Lower Brule, South Dakota. The lake surface is frozen and covered with snow, presenting a uniform white appearance. As meander bends develop, they tend to assume a distinctive U shape. Over time, the river channel can continue to cut into the ends of the “U,” eventually bringing them so close together that the river then cuts across the gap to achieve a shorter flow path and cut off the meander bend. When this happens and the meander ceases to be part of the active river channel, it may become an oxbow lake. The distance across the narrow neck of land (image lower right) associated with this meander is approximately 1 kilometer (0.62 miles). However, the river flow is controlled by the Big Bend Dam downstream, so the natural process of meander cutoff has been significantly slowed. Snow cover also highlights circular agricultural fields on the small peninsula within the meander bend.
This type of field indicates center-pivot irrigation, where water is distributed from a central point radially outwards using sprinklers to cover the field area. Crops grown here include corn and soybeans, according to data from the U.S. Department of Agriculture’s CropScape database. Astronaut photograph ISS038-E-23651 was acquired on Dec. 26, 2013, with a Nikon D3X digital camera using a 1000 millimeter lens, and is provided by the ISS Crew Earth Observations experiment and Image Science & Analysis Laboratory, Johnson Space Center. The image was taken by the Expedition 38 crew. It has been cropped and enhanced to improve contrast, and lens artifacts have been removed. > View annotated image Image Credit: NASA Caption-William L. Stefanov, Jacobs, NASA-JSC.
BOSTON MARATHON BOMBING VICTIM SUPPORT ORGANIZATIONS TO RECEIVE OVER $8.3 MILLION
FROM: JUSTICE DEPARTMENT
Monday, January 13, 2014
Attorney General Announces $8.3 Million to Support Victims of Boston Marathon Bombings
The U.S. Department of Justice’s Office for Victims of Crime (OVC) today announced a $8,355,648 grant to organizations providing direct support to assist the victims, witnesses and first responders involved in the events surrounding the Boston Marathon bombings in April 2013.
“This grant funding will provide critical support to many who were affected by last year’s terrorist attack on the Boston Marathon,” said Attorney General Eric Holder. “We will never forget the courage of the first responders, marathon participants, and bystanders who rushed to save lives on that terrible day, nor the heartbreak and pain of those who suffered injuries or lost friends and loved ones. With this grant, we reaffirm the Justice Department’s firm commitment to standing with the victims of this heinous crime – and all of the community leaders and service providers who continue to heal this remarkable and resilient city.”
On April 15, 2013, two pressure cooker bombs were detonated 13 seconds apart near the finish line of the Boston Marathon, killing three spectators and injuring hundreds more. On April 18, 2013, the suspects allegedly shot and killed an officer of the Massachusetts Institute of Technology Police Department. Subsequently, the two suspects allegedly carjacked a vehicle and took the vehicle’s owner hostage; he later escaped. On April 19, 2013, a Watertown, Mass., police officer identified the suspects and a gunfight ensued between the suspects and police in a Watertown neighborhood. This incident resulted in one suspect’s death when he was struck by a vehicle as the other suspect fled the scene. Later that day, police apprehended the remaining suspect in a different Watertown neighborhood. Victims affected include those in the vicinity of the bombings as well as the residents of neighborhoods in which subsequent events unfolded. An estimated 1,000 victims will require crisis and/or longer-term recovery services.
OVC provided the Antiterrorism and Emergency Assistance Program (AEAP) grant to the Massachusetts Office for Victim Assistance (MOVA).
“MOVA has worked diligently with OVC and our federal, state and local partners to serve those impacted by the Boston Marathon bombings, while planning a longer term solution to meet their evolving needs in the years to come,” said MOVA Executive Director Liam Lowney. “We are grateful to OVC for its continued support in developing a response that is tailored to specifically address the physical and emotional injuries caused to so many individuals, their families and our community as a whole by this tragedy.”
This award will include costs, both incurred and anticipated, for organizations providing crisis intervention services and trauma-informed care, continuum of care, socioeconomic support, wrap-around legal services and other victim assistance.
“OVC is committed to promoting healing and justice for all victims of crime,” said OVC Director Joye Frost. “We acknowledge the hardships that all victims of crime face and recognize the enormous physical, emotional and financial toll of the Boston bombings on victims and their loved ones. Many of these bombing victims face serious and protracted medical problems as well as long-term financial loss and emotional upheaval. This award will ensure that Boston and the state of Massachusetts can provide critical support to victims and their families as they work to restore a sense of normalcy to their lives.”
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an AEAP grant award for crisis response, criminal justice support, crime victim compensation and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the shootings in Newtown, Conn. (2012); Oak Creek, Wis. (2012); Aurora, Colo. (2012); Tucson, Ariz. (2011); Binghamton, N.Y. (2009); and at the Virginia Polytechnic Institute and State University (2007).
Monday, January 13, 2014
Attorney General Announces $8.3 Million to Support Victims of Boston Marathon Bombings
The U.S. Department of Justice’s Office for Victims of Crime (OVC) today announced a $8,355,648 grant to organizations providing direct support to assist the victims, witnesses and first responders involved in the events surrounding the Boston Marathon bombings in April 2013.
“This grant funding will provide critical support to many who were affected by last year’s terrorist attack on the Boston Marathon,” said Attorney General Eric Holder. “We will never forget the courage of the first responders, marathon participants, and bystanders who rushed to save lives on that terrible day, nor the heartbreak and pain of those who suffered injuries or lost friends and loved ones. With this grant, we reaffirm the Justice Department’s firm commitment to standing with the victims of this heinous crime – and all of the community leaders and service providers who continue to heal this remarkable and resilient city.”
On April 15, 2013, two pressure cooker bombs were detonated 13 seconds apart near the finish line of the Boston Marathon, killing three spectators and injuring hundreds more. On April 18, 2013, the suspects allegedly shot and killed an officer of the Massachusetts Institute of Technology Police Department. Subsequently, the two suspects allegedly carjacked a vehicle and took the vehicle’s owner hostage; he later escaped. On April 19, 2013, a Watertown, Mass., police officer identified the suspects and a gunfight ensued between the suspects and police in a Watertown neighborhood. This incident resulted in one suspect’s death when he was struck by a vehicle as the other suspect fled the scene. Later that day, police apprehended the remaining suspect in a different Watertown neighborhood. Victims affected include those in the vicinity of the bombings as well as the residents of neighborhoods in which subsequent events unfolded. An estimated 1,000 victims will require crisis and/or longer-term recovery services.
OVC provided the Antiterrorism and Emergency Assistance Program (AEAP) grant to the Massachusetts Office for Victim Assistance (MOVA).
“MOVA has worked diligently with OVC and our federal, state and local partners to serve those impacted by the Boston Marathon bombings, while planning a longer term solution to meet their evolving needs in the years to come,” said MOVA Executive Director Liam Lowney. “We are grateful to OVC for its continued support in developing a response that is tailored to specifically address the physical and emotional injuries caused to so many individuals, their families and our community as a whole by this tragedy.”
This award will include costs, both incurred and anticipated, for organizations providing crisis intervention services and trauma-informed care, continuum of care, socioeconomic support, wrap-around legal services and other victim assistance.
“OVC is committed to promoting healing and justice for all victims of crime,” said OVC Director Joye Frost. “We acknowledge the hardships that all victims of crime face and recognize the enormous physical, emotional and financial toll of the Boston bombings on victims and their loved ones. Many of these bombing victims face serious and protracted medical problems as well as long-term financial loss and emotional upheaval. This award will ensure that Boston and the state of Massachusetts can provide critical support to victims and their families as they work to restore a sense of normalcy to their lives.”
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an AEAP grant award for crisis response, criminal justice support, crime victim compensation and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the shootings in Newtown, Conn. (2012); Oak Creek, Wis. (2012); Aurora, Colo. (2012); Tucson, Ariz. (2011); Binghamton, N.Y. (2009); and at the Virginia Polytechnic Institute and State University (2007).
DEFENSE SECRETARY HAGEL, ITALY'S DEFENSE MINSTER DISCUSS ISSUES
 |
| Defense Secretary Chuck Hagel escorts Italian Defense Minister Mario Mauro through an honor cordon at the Pentagon, Jan. 13, 2014. Hagel and Mauro met to discuss global security and cooperative efforts such as the joint strike fighter program. DOD photo by Erin A. Kirk-Cuomo |
Hagel Discusses Variety of Issues With Italy’s Defense Minister
American Forces Press Service
WASHINGTON, Jan. 14, 2014 – Afghanistan, Syria, Mediterranean security and cooperative efforts such as the joint strike fighter program highlighted a meeting at the Pentagon yesterday between Defense Secretary Chuck Hagel and Italian Defense Minister of Defense Mario Mauro, Pentagon Press Secretary Navy Rear Adm. John Kirby said.
n a statement summarizing the meeting, Kirby noted that Italy is a key NATO ally and an important leader in addressing global challenges in Afghanistan, Lebanon, the Balkans and North Africa.
"Secretary Hagel praised Italy's contributions to capacity building in emerging democracies in the Middle East and North Africa,” the admiral said. Italy recently began providing security training to Libyan general purpose forces, and will help to stabilize Afghanistan as a framework nation in Afghanistan's western region after the current NATO mission concludes at the end of the year, he added.
Hagel also lauded Italy's role in the international community's mission to eliminate Syria's chemical weapons stockpile, Kirby said. Italy has offered to provide a port to transfer the materials from Danish and Norwegian vessels to the Cape Ray, a U.S. ship that has been specially configured to neutralize the chemical weapons materials at sea.
"Secretary Hagel is thankful for the hospitality Italy provides to the approximately 33,000 U.S. service members, civilians and families who live and work there,” the press secretary said, and looks forward to seeing Mauro in September at NATO’s summit in Wales.
THE BIOMASS BIG PICTURE
FROM: NATIONAL SCIENCE FOUNDATION
There's more to biofuel production than yield
Focusing solely on yield comes at a high price
When it comes to biofuels, corn leads the all-important category of biomass yield. However, focusing solely on yield comes at a high price, scientists say.
In this week's issue of the journal Proceedings of the National Academy of Sciences (PNAS), the researchers show that looking at the big picture allows other biofuel crops, such as native perennial grasses, to score higher as viable alternatives.
"We believe our findings have major implications for bioenergy research and policy," said Doug Landis, a biologist at Michigan State University (MSU) and one of the paper's lead authors.
"Biomass yield is obviously a key goal, but it appears to come at the expense of many other environmental benefits that society may desire from rural landscapes."
Landis and a team of researchers from the Great Lakes Bioenergy Research Center and the National Science Foundation (NSF) Kellogg Biological Station Long-Term Ecological Research (LTER) site compared three potential biofuel crops: corn, switchgrass and mixes of native prairie grasses and flowering plants.
Kellogg Biological Station is one of 26 such NSF LTER sites in ecosystems from grasslands to coral reefs, deserts to mountains around the world.
"Sustainability, food security, biodiversity, biofuel production--all are important to an increasing human population," says Saran Twombly, program director in NSF's Division of Environmental Biology, which funded the research through the LTER Program. "This is a superb example of how fundamental ecological research can assist human well-being."
The scientists measured the diversity of plants, pests and beneficial insects, birds and microbes that consume methane, a greenhouse gas that contributes to climate change.
Methane consumption, pest suppression, pollination and bird populations were higher in perennial grasslands.
In addition, the team found that the grass crops' ability to harbor such increased biodiversity is strongly linked to the fields' location relative to other habitats.
For example, pest suppression, which is already higher in perennial grass crops, increased by an additional 30 percent when fields were located near other perennial grass habitats.
That suggests that to enhance pest suppression and other critical ecosystem services, coordinated land use should play a key role in agricultural policy and planning, Landis said.
"With supportive policies, we envision the ability to design agricultural landscapes to maximize multiple benefits," he said.
However, rising corn and other commodity prices tempt farmers to till and plant as much of their available land as possible.
"Corn prices are currently attractive to farmers, but with the exception of biomass yield, all other services were greater in the perennial grass crops," Landis said.
"If high commodity prices continue to drive conversion of these marginal lands to annual crop production, it will reduce the flexibility we have in the future to promote other critical services like pollination, pest suppression and reduction of greenhouse gases."
Additional MSU researchers involved in the study include Ben Werling, Timothy Dickson, Rufus Isaacs, Katherine Gross, Carolyn Malmstrom, Leilei Ruan, Philip Robertson, Thomas Schmidt, Tracy Teal and Julianna Wilson.
Scientists from the University of Wisconsin, University of Nebraska, Bard College and Trinity Christian College were part of the research.
The work was also funded by the U.S. Department of Energy and MSU AgBioResearch.
-NSF-
There's more to biofuel production than yield
Focusing solely on yield comes at a high price
When it comes to biofuels, corn leads the all-important category of biomass yield. However, focusing solely on yield comes at a high price, scientists say.
In this week's issue of the journal Proceedings of the National Academy of Sciences (PNAS), the researchers show that looking at the big picture allows other biofuel crops, such as native perennial grasses, to score higher as viable alternatives.
"We believe our findings have major implications for bioenergy research and policy," said Doug Landis, a biologist at Michigan State University (MSU) and one of the paper's lead authors.
"Biomass yield is obviously a key goal, but it appears to come at the expense of many other environmental benefits that society may desire from rural landscapes."
Landis and a team of researchers from the Great Lakes Bioenergy Research Center and the National Science Foundation (NSF) Kellogg Biological Station Long-Term Ecological Research (LTER) site compared three potential biofuel crops: corn, switchgrass and mixes of native prairie grasses and flowering plants.
Kellogg Biological Station is one of 26 such NSF LTER sites in ecosystems from grasslands to coral reefs, deserts to mountains around the world.
"Sustainability, food security, biodiversity, biofuel production--all are important to an increasing human population," says Saran Twombly, program director in NSF's Division of Environmental Biology, which funded the research through the LTER Program. "This is a superb example of how fundamental ecological research can assist human well-being."
The scientists measured the diversity of plants, pests and beneficial insects, birds and microbes that consume methane, a greenhouse gas that contributes to climate change.
Methane consumption, pest suppression, pollination and bird populations were higher in perennial grasslands.
In addition, the team found that the grass crops' ability to harbor such increased biodiversity is strongly linked to the fields' location relative to other habitats.
For example, pest suppression, which is already higher in perennial grass crops, increased by an additional 30 percent when fields were located near other perennial grass habitats.
That suggests that to enhance pest suppression and other critical ecosystem services, coordinated land use should play a key role in agricultural policy and planning, Landis said.
"With supportive policies, we envision the ability to design agricultural landscapes to maximize multiple benefits," he said.
However, rising corn and other commodity prices tempt farmers to till and plant as much of their available land as possible.
"Corn prices are currently attractive to farmers, but with the exception of biomass yield, all other services were greater in the perennial grass crops," Landis said.
"If high commodity prices continue to drive conversion of these marginal lands to annual crop production, it will reduce the flexibility we have in the future to promote other critical services like pollination, pest suppression and reduction of greenhouse gases."
Additional MSU researchers involved in the study include Ben Werling, Timothy Dickson, Rufus Isaacs, Katherine Gross, Carolyn Malmstrom, Leilei Ruan, Philip Robertson, Thomas Schmidt, Tracy Teal and Julianna Wilson.
Scientists from the University of Wisconsin, University of Nebraska, Bard College and Trinity Christian College were part of the research.
The work was also funded by the U.S. Department of Energy and MSU AgBioResearch.
-NSF-
Tuesday, January 14, 2014
SECRETARY OF STATE KERRY'S REMARKS AFTER MEETING WITH SECRETARY OF STATE OF HOLY SEE
FROM: STATE DEPARTMENT
Remarks After Meeting With Secretary of State of the Holy See Pietro Parolin
Remarks
John Kerry
Secretary of State
Villa Richardson
Rome, Italy
January 14, 2014
Well, let me just say that it was a privilege for me as the first Catholic Secretary of State in about 32 or 33 years to have the privilege of going to the Vatican today to talk with the new secretary of state there about the broad array of issues that we face together across the world. And on a personal level, it was a thrill for me to be able to do that, as an altar boy, as a young kid, I would never have imagined that I would have been crossing the threshold of the Vatican to meet, as Secretary of State, with the Secretary of State of the Holy See.
And it was a very comprehensive, very, very interesting conversation. We touched on just about every major issue that we are both working on, that are issues of concern to all of us. First of all, we talked at great length about Syria, and I was particularly appreciative for the Archbishop’s raising this issue, and equally grateful for the Holy Father’s comments – the Pope’s comments yesterday regarding his support for the Geneva II process. We welcome that support. It is very important to have broad support, and I know that the Pope is particularly concerned about the massive numbers of displaced human beings and the violence that has taken over 130,000 lives.
In addition, the Secretary – Archbishop Parolin asked me for a solid briefing with respect to the Middle East peace process. Pope Francis will be going to Israel and the Palestinian territories and to Jordan in May, and so we agreed, after I gave a briefing, that we would stay in touch in order to keep him abreast of what we’re doing and then what progress there may be in the peace process. But obviously, there are issues of enormous concern to the Holy See, not just about peace, but also about the freedom of access for religious worship in Jerusalem for all religions and appropriate resolution with respect to Jerusalem that respects that going forward.
We also talked about Africa, the challenge of Sudan, where there are particular interests. There is a large Catholic population in South Sudan. President Kiir, himself, is Catholic, and I think that our efforts over the last days could be augmented by the efforts of the Holy See with respect to trying to end the violence and bring about a peaceful resolution. I think the Secretary of State of the Holy See was very interested in what he and they could do in order to try to assist in that process.
We talked also about Cuba and the need for respect for freedom of religion and freedom of – and respect for human rights. I raised the issue of Alan Gross and his captivity, and we hope very much that there might be able to be assistance with respect to that issue. And similarly, the Holy Father yesterday in his speech raised the responsibility that we all have for the climate, for responsibility for planet Earth, which is our common home, as he said. And we share the responsibilities with respect to that.
We talked about the common interest of Pope Francis and President Obama in addressing poverty and extreme poverty on a global basis. The United States of America is deeply involved in efforts in Africa and in other parts of the world – in Asia, South Central Asia – to address this poverty, as is the Catholic Church. And so we have a huge common interest in dealing with this issue of poverty, which in many cases is the root cause of terrorism or even the root cause of the disenfranchisement of millions of people on this planet.
So this was as comprehensive a conversation as I’ve had with any secretary of state or foreign minister in the course of my tenure, and I think, happily, we agreed on an enormous amount of things that we can cooperate on. That’s what’s important. We need to find all of the voices that are prepared to fight for anti-poverty or peace or for reconciliation among peoples, to bring religions together, to bring people together, and to make peace. I am very mindful of the fact that in his first Urbi et Orbi speech or address, the Holy Father did speak about the importance of peace and the importance of all people on Earth being peacemakers.
So I’m grateful for the conversation we had today. I know that the Holy Father is anticipating the visit of President Obama here, and the President is looking forward to coming here to meet with him. So much was agreed on as a mutual agenda this morning, and I’m particularly pleased to know that the Holy Father and the Secretary of State in the Holy See will continue to speak out about peace in the Middle East, continue to try to bring the parties together, continue to help address some of the most pressing concerns that are challenging failed states and failing states in too many parts of the world.
It is good to know that we will have this common enterprise together, and I was very grateful to the archbishop who I had the pleasure of congratulating on his elevation to cardinal, which will take place in February. So it was an all-in-all very helpful meeting, and I’m confident that the groundwork and agreement that we reached with respect to the peace process, as well as a number of other urgent priorities, will help us as we go forward in the next days and months.
Thank you very much.
Remarks After Meeting With Secretary of State of the Holy See Pietro Parolin
Remarks
John Kerry
Secretary of State
Villa Richardson
Rome, Italy
January 14, 2014
Well, let me just say that it was a privilege for me as the first Catholic Secretary of State in about 32 or 33 years to have the privilege of going to the Vatican today to talk with the new secretary of state there about the broad array of issues that we face together across the world. And on a personal level, it was a thrill for me to be able to do that, as an altar boy, as a young kid, I would never have imagined that I would have been crossing the threshold of the Vatican to meet, as Secretary of State, with the Secretary of State of the Holy See.
And it was a very comprehensive, very, very interesting conversation. We touched on just about every major issue that we are both working on, that are issues of concern to all of us. First of all, we talked at great length about Syria, and I was particularly appreciative for the Archbishop’s raising this issue, and equally grateful for the Holy Father’s comments – the Pope’s comments yesterday regarding his support for the Geneva II process. We welcome that support. It is very important to have broad support, and I know that the Pope is particularly concerned about the massive numbers of displaced human beings and the violence that has taken over 130,000 lives.
In addition, the Secretary – Archbishop Parolin asked me for a solid briefing with respect to the Middle East peace process. Pope Francis will be going to Israel and the Palestinian territories and to Jordan in May, and so we agreed, after I gave a briefing, that we would stay in touch in order to keep him abreast of what we’re doing and then what progress there may be in the peace process. But obviously, there are issues of enormous concern to the Holy See, not just about peace, but also about the freedom of access for religious worship in Jerusalem for all religions and appropriate resolution with respect to Jerusalem that respects that going forward.
We also talked about Africa, the challenge of Sudan, where there are particular interests. There is a large Catholic population in South Sudan. President Kiir, himself, is Catholic, and I think that our efforts over the last days could be augmented by the efforts of the Holy See with respect to trying to end the violence and bring about a peaceful resolution. I think the Secretary of State of the Holy See was very interested in what he and they could do in order to try to assist in that process.
We talked also about Cuba and the need for respect for freedom of religion and freedom of – and respect for human rights. I raised the issue of Alan Gross and his captivity, and we hope very much that there might be able to be assistance with respect to that issue. And similarly, the Holy Father yesterday in his speech raised the responsibility that we all have for the climate, for responsibility for planet Earth, which is our common home, as he said. And we share the responsibilities with respect to that.
We talked about the common interest of Pope Francis and President Obama in addressing poverty and extreme poverty on a global basis. The United States of America is deeply involved in efforts in Africa and in other parts of the world – in Asia, South Central Asia – to address this poverty, as is the Catholic Church. And so we have a huge common interest in dealing with this issue of poverty, which in many cases is the root cause of terrorism or even the root cause of the disenfranchisement of millions of people on this planet.
So this was as comprehensive a conversation as I’ve had with any secretary of state or foreign minister in the course of my tenure, and I think, happily, we agreed on an enormous amount of things that we can cooperate on. That’s what’s important. We need to find all of the voices that are prepared to fight for anti-poverty or peace or for reconciliation among peoples, to bring religions together, to bring people together, and to make peace. I am very mindful of the fact that in his first Urbi et Orbi speech or address, the Holy Father did speak about the importance of peace and the importance of all people on Earth being peacemakers.
So I’m grateful for the conversation we had today. I know that the Holy Father is anticipating the visit of President Obama here, and the President is looking forward to coming here to meet with him. So much was agreed on as a mutual agenda this morning, and I’m particularly pleased to know that the Holy Father and the Secretary of State in the Holy See will continue to speak out about peace in the Middle East, continue to try to bring the parties together, continue to help address some of the most pressing concerns that are challenging failed states and failing states in too many parts of the world.
It is good to know that we will have this common enterprise together, and I was very grateful to the archbishop who I had the pleasure of congratulating on his elevation to cardinal, which will take place in February. So it was an all-in-all very helpful meeting, and I’m confident that the groundwork and agreement that we reached with respect to the peace process, as well as a number of other urgent priorities, will help us as we go forward in the next days and months.
Thank you very much.
3 CHARGED FOR ROLES IN YEN LIBOR MANIPULATION CASE
FROM: JUSTICE DEPARTMENT
Monday, January 13, 2014
Three Former Rabobank Traders Charged with Manipulating Yen Libor
Two former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives traders and the trader responsible for setting Rabobank’s Yen London InterBank Offered Rate (LIBOR) were charged as part of the ongoing criminal investigation into the manipulation of LIBOR.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Earlier today, a U.S. Magistrate Judge sitting in the Southern District of New York signed a criminal complaint charging Paul Robson of the United Kingdom, Paul Thompson of Australia, and Tetsuya Motomura of Japan with conspiracy to commit wire fraud and bank fraud as well as substantive counts of wire fraud. All are former employees of Rabobank, which on Oct. 29, 2013, entered into a deferred prosecution agreement with the Department of Justice as part of the department’s LIBOR investigation and agreed to pay a $325 million penalty. Each defendant faces up to 30 years in prison for each count upon conviction.
“Today, less than three months after Rabobank admitted its involvement in the manipulation of LIBOR, we have charged three of its senior traders with participating in this global fraud scheme,” said Acting Assistant Attorney General Raman. “As alleged, these three traders – working from Japan, Singapore and the U.K. – deliberately submitted what they called ‘obscenely high’ or ‘silly low’ LIBOR rates in order to benefit their own trading positions. The illegal manipulation of this cornerstone benchmark rate undermines the integrity of the markets; it harms those who are relying on what they expect to be an honest benchmark; and it has ripple effects that extend far beyond the trading at issue here. The Justice Department has now charged eight individuals and reached resolutions with four multi-national banks as part of our ongoing and industry-wide LIBOR probe and, alongside our law enforcement and regulatory partners both here and abroad, we remain committed to continuing to root out this misconduct.”
“The conspirators charged today conspired to rig the interest rates used by derivative products throughout the financial industry to benefit their own trading books,” said Deputy Assistant Attorney General Snyder. “Today’s charges demonstrate the department’s commitment to hold individuals accountable for schemes that undermine the integrity of markets that rely on competition to flourish.”
“Manipulation of benchmark rates that are routinely referenced by financial products around the world erodes the integrity of our financial markets,” said Assistant Director in Charge Parlave. “The charges against these individuals represent another step in our ongoing efforts to find and stop those who hide behind complex corporate and securities fraud schemes. I commend the Special Agents, forensic accountants and analysts as well as the prosecutors for the significant time and resources they committed to investigating this case.”
According to the complaint, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the criminal complaint, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
According to allegations in the complaint, all three defendants traded in derivative products that referenced Yen LIBOR. Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; and Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders employed at Rabobank’s Tokyo desk. In addition to trading derivative products that referenced Yen LIBOR, Robson also served as Rabobank’s primary submitter of Yen LIBOR to the BBA.
Robson, Thompson and Motomura each entered into derivatives contracts containing Yen LIBOR as a price component . The profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
The complaint alleges that from about May 2006 to at least January 2011, Robson, Thompson, Motomura and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of their trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant and consistent with the co-defendant’s trading positions. Other times, Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant and consistent with the co-defendant’s trading positions. On those occasions, Robson’s manipulated Yen LIBOR submissions were to the detriment of, among others, Rabobank’s counterparties to derivative contracts.
In addition to allegedly manipulating Rabobank’s Yen LIBOR submissions, Robson, on occasion and on behalf of one or more co-defendants, coordinated his Yen LIBOR submission with the trader responsible for making Yen LIBOR submissions at another Yen LIBOR panel bank. At times, Robson allegedly submitted Yen LIBOR at a level requested by the other trader, and, at other times, that trader submitted Yen LIBOR at a level requested by Robson.
As alleged in the complaint, Thompson, Motomura and another Rabobank trader described in the complaint as Trader-R made requests of Robson for Yen LIBOR submissions through electronic chats and email exchanges. For example, on May 19, 2006, after Thompson informed Robson that his net exposure for his 3-month fixes was 125 billion Yen, he requested by email that Robson “sneak your 3m libor down a cheeky 1 or 2 bp” because “it will make a bit of diff for me.” On or about May 19, 2006, Robson responded: “No prob mate I mark it low.”
On Sept. 21, 2007, Trader-R asked Robson by email, “wehre do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Trader-R replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Trader-R asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”
As another example, on Aug. 4, 2008, in a Bloomberg chat, Motomura asked Robson, “Please set today’s 6mth LIBOR at 0.96 I have chunky fixing.” To this, Robson responded, “no worries mate.”
The complaint alleges that Robson accommodated the requests of his co-defendants. For example, on Sept. 21, 2007, after Robson received a request from Trader-R for a high 1 month Yen LIBOR, Rabobank submitted a 1-month Yen LIBOR rate of 0.90, which was 7 basis points higher than the previous day and 5 basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.
According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Trial Attorneys Carol L. Sipperly, Brian Young and Alexander H. Berlin of the Criminal Division’s Fraud Section, and Trial Attorneys Ludovic C. Ghesquiere and Michael T. Koenig of the Antitrust Division. Former Deputy Chief Glenn Leon and Senior Counsel Rebecca Rohr of the Criminal Division’s Fraud Section, along with Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division, have also provided valuable assistance. The Criminal Division’s Office of International Affairs has provided assistance in this matter as well.
The broader investigation relating to LIBOR and other benchmark rates has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Monday, January 13, 2014
Three Former Rabobank Traders Charged with Manipulating Yen Libor
Two former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives traders and the trader responsible for setting Rabobank’s Yen London InterBank Offered Rate (LIBOR) were charged as part of the ongoing criminal investigation into the manipulation of LIBOR.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Earlier today, a U.S. Magistrate Judge sitting in the Southern District of New York signed a criminal complaint charging Paul Robson of the United Kingdom, Paul Thompson of Australia, and Tetsuya Motomura of Japan with conspiracy to commit wire fraud and bank fraud as well as substantive counts of wire fraud. All are former employees of Rabobank, which on Oct. 29, 2013, entered into a deferred prosecution agreement with the Department of Justice as part of the department’s LIBOR investigation and agreed to pay a $325 million penalty. Each defendant faces up to 30 years in prison for each count upon conviction.
“Today, less than three months after Rabobank admitted its involvement in the manipulation of LIBOR, we have charged three of its senior traders with participating in this global fraud scheme,” said Acting Assistant Attorney General Raman. “As alleged, these three traders – working from Japan, Singapore and the U.K. – deliberately submitted what they called ‘obscenely high’ or ‘silly low’ LIBOR rates in order to benefit their own trading positions. The illegal manipulation of this cornerstone benchmark rate undermines the integrity of the markets; it harms those who are relying on what they expect to be an honest benchmark; and it has ripple effects that extend far beyond the trading at issue here. The Justice Department has now charged eight individuals and reached resolutions with four multi-national banks as part of our ongoing and industry-wide LIBOR probe and, alongside our law enforcement and regulatory partners both here and abroad, we remain committed to continuing to root out this misconduct.”
“The conspirators charged today conspired to rig the interest rates used by derivative products throughout the financial industry to benefit their own trading books,” said Deputy Assistant Attorney General Snyder. “Today’s charges demonstrate the department’s commitment to hold individuals accountable for schemes that undermine the integrity of markets that rely on competition to flourish.”
“Manipulation of benchmark rates that are routinely referenced by financial products around the world erodes the integrity of our financial markets,” said Assistant Director in Charge Parlave. “The charges against these individuals represent another step in our ongoing efforts to find and stop those who hide behind complex corporate and securities fraud schemes. I commend the Special Agents, forensic accountants and analysts as well as the prosecutors for the significant time and resources they committed to investigating this case.”
According to the complaint, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the criminal complaint, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
According to allegations in the complaint, all three defendants traded in derivative products that referenced Yen LIBOR. Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; and Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders employed at Rabobank’s Tokyo desk. In addition to trading derivative products that referenced Yen LIBOR, Robson also served as Rabobank’s primary submitter of Yen LIBOR to the BBA.
Robson, Thompson and Motomura each entered into derivatives contracts containing Yen LIBOR as a price component . The profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
The complaint alleges that from about May 2006 to at least January 2011, Robson, Thompson, Motomura and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of their trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant and consistent with the co-defendant’s trading positions. Other times, Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant and consistent with the co-defendant’s trading positions. On those occasions, Robson’s manipulated Yen LIBOR submissions were to the detriment of, among others, Rabobank’s counterparties to derivative contracts.
In addition to allegedly manipulating Rabobank’s Yen LIBOR submissions, Robson, on occasion and on behalf of one or more co-defendants, coordinated his Yen LIBOR submission with the trader responsible for making Yen LIBOR submissions at another Yen LIBOR panel bank. At times, Robson allegedly submitted Yen LIBOR at a level requested by the other trader, and, at other times, that trader submitted Yen LIBOR at a level requested by Robson.
As alleged in the complaint, Thompson, Motomura and another Rabobank trader described in the complaint as Trader-R made requests of Robson for Yen LIBOR submissions through electronic chats and email exchanges. For example, on May 19, 2006, after Thompson informed Robson that his net exposure for his 3-month fixes was 125 billion Yen, he requested by email that Robson “sneak your 3m libor down a cheeky 1 or 2 bp” because “it will make a bit of diff for me.” On or about May 19, 2006, Robson responded: “No prob mate I mark it low.”
On Sept. 21, 2007, Trader-R asked Robson by email, “wehre do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Trader-R replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Trader-R asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”
As another example, on Aug. 4, 2008, in a Bloomberg chat, Motomura asked Robson, “Please set today’s 6mth LIBOR at 0.96 I have chunky fixing.” To this, Robson responded, “no worries mate.”
The complaint alleges that Robson accommodated the requests of his co-defendants. For example, on Sept. 21, 2007, after Robson received a request from Trader-R for a high 1 month Yen LIBOR, Rabobank submitted a 1-month Yen LIBOR rate of 0.90, which was 7 basis points higher than the previous day and 5 basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.
According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Trial Attorneys Carol L. Sipperly, Brian Young and Alexander H. Berlin of the Criminal Division’s Fraud Section, and Trial Attorneys Ludovic C. Ghesquiere and Michael T. Koenig of the Antitrust Division. Former Deputy Chief Glenn Leon and Senior Counsel Rebecca Rohr of the Criminal Division’s Fraud Section, along with Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division, have also provided valuable assistance. The Criminal Division’s Office of International Affairs has provided assistance in this matter as well.
The broader investigation relating to LIBOR and other benchmark rates has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
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