Standard Chartered sees $330 million settlement on Iran












HONG KONG (Reuters) – Standard Chartered expects to pay $ 330 million to settle a case with U.S. regulators who accused the Asia-focused bank of failing to comply with sanctions against Iran, further denting profit growth this year.


The settlement will be on top of the $ 340 million it paid to New York’s Department of Financial Services in the third quarter, which pushed its before-tax profit growth in 2012 to a mid-single-digit percentage from more than 10 percent, StanChart said in a statement on Thursday.












Any earnings growth would mean a 10th straight year of record profits, as StanChart has ridden on Asia‘s rise through much of the last decade, allowing it to continue hiring and increasing earnings when much of the industry is shrinking.


“It ain’t broke, so they’re not fixing it,” said Jim Antos, an analyst at Mizuho Securities in Hong Kong. “The thing they are doing is trying to add new businesses, but there isn’t a compelling story and that’s why their shares haven’t moved.”


Standard Chartered said it expected talks with U.S. Federal regulators to conclude shortly, confirming a Reuters report in early November.


Despite its regulatory woes, the bank is one of the few still hiring in the industry, saying in August it intended to add at least 1,500 more staff in the second half of this year. By contrast, most rivals have been cutting, with Citi saying on Wednesday it was cutting 11,000 jobs.


“We continue to see significant opportunities across our markets in Asia, Africa and the Middle East,” Chief Executive Peter Sands wrote in a statement released on Thursday.


KEEPING LID ON COSTS


A rise in the number of out-of-work bankers meant Standard Chartered was able to maintain a lid on costs, with revenue growing faster than costs — a phenomenon known in financial industry jargon as “positive jaws”.


For much of 2010, StanChart was hit by ever-rising costs as an increasing number of banks and brokerages tried to expand in Asia. Since then, various minor players including Samsung Securities and KBW have begun pulling out.


The bank does not release specific numbers in its trading updates, which it keeps for its annual report that is typically released in late February. It singled out Malaysia, China and Indonesia as regions where income grew by at least 10 percent.


In Hong Kong, its biggest market, income grew at a high single-digit percentage, the bank said.


StanChart’s Hong Kong-listed shares are up 9 percent year-to-date, lagging the 20 percent rise on the Hang Seng Index.


Asset quality remained good, the bank said, with loan impairments within the wholesale bank expected to be below the levels seen in the first half of this year. For the consumer bank, loan impairment is expected to increase by at least 10 percent from the first half.


However, StanChart pointed to India and the Middle East as two markets where it was watchful for asset quality. Slowing growth in some emerging markets has raised concern that StanChart could be hit by a rise in bad loans.


The bank appointed a new global head of loan syndication in late November, naming Cristian Jonsson to replace Philip Cracknell, who is retiring in March.


To diversify away from its traditional lending business, the bank has been looking to expand to areas such as commodities, where it aims to double revenue in the next four years, it said on Tuesday.


(Editing by Alex Richardson)


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South Africa military plane crashes in mountains












JOHANNESBURG (AP) — A South African military aircraft on an unknown mission to an area near the village where former President Nelson Mandela lives crashed in a mountain range, officials said Thursday. It was unclear whether there were any survivors.


The Douglas DC-3 Dakota, a twin-propeller aircraft, had taken off from Pretoria’s Waterkloof Air Force Base on Wednesday night, said Brig. Gen. Xolani Mabanga, a military spokesman. On Thursday morning, soldiers found the wreckage of the airplane in the Drakensberg mountains near Ladysmith in KwaZulu-Natal province, some 340 kilometers (210 miles) southeast of the air base, Mabanga said.












Mabanga said soldiers had been sent to the scene to look for survivors. Mabanga said he did not know what the mission of the aircraft was, though it had planned to land in Mthatha in the country’s Eastern Cape. Siphiwe Dlamini, a Defense Ministry spokesman, declined to immediately comment Thursday morning.


Mthatha is about 30 kilometers (17 miles) north of Qunu, the village where Mandela now lives after retiring from public life. South Africa‘s military remains largely responsible for the former president’s medical care. However, military officials declined to say whether those on board had any part in caring for Mandela.


In November, another South African military flight crash landed at Mthatha, sending several people to the hospital with injuries. However, at that time, the military denied that those on board had anything to do with Mandela’s care.


Mandela, 94, was imprisoned for nearly three decades for his fight against apartheid before becoming the nation’s president in the country’s first fully democratic vote in 1994.


___


Jon Gambrell can be reached at www.twitter.com/jongambrellAP .


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Guatemala detains McAfee, to expel him to Belize












GUATEMALA CITY (Reuters) – Guatemalan police arrested U.S. software guru John McAfee on Wednesday for illegally entering the country and said it would seek to expel him to neighboring Belize, which he fled after being sought for questioning over his neighbor’s murder.


McAfee, who had been in hiding for three weeks, crossed into Guatemala with his 20-year-old girlfriend to evade authorities in Belize who wanted to quiz him as “a person of interest” about the killing of fellow American Gregory Faull.












“He entered the country illegally and we are going to seek his expulsion for this crime,” Interior Minister Mauricio Lopez Bonilla said. McAfee was detained by Guatemalan police and a member of Interpol at the upscale Intercontinental hotel in Guatemala City.


One of Silicon Valley’s first entrepreneurs to build an Internet fortune, the 67-year-old made millions of dollars through the antivirus software that now carries his name.


McAfee’s behavior has been increasingly erratic in recent years but there is no international arrest warrant for him. Police in Belize say he is not a prime suspect.


Government spokesman Francisco Cuevas said the entrepreneur would be expelled to Belize and he expected the process to be completed by early Thursday morning.


Fernando Lucero, spokesman for Guatemala’s immigration department, saidimmediate deportation had been ruled out. McAfee’s lawyer Telesforo Guerra was seeking an injunction to have him released and the American said on his blog www.whoismcafee.com that he would not now be returned to the Belize border until a higher judge reviewed the case.


McAfee was taken to a residence belonging to the immigration department guarded by a small group of police.


He had been seeking political asylum in Guatemala, which has been embroiled in a long-running territorial dispute with Belize. .


Residents and neighbors on the Caribbean island of Ambergris Caye, where McAfee has lived in Belize for about four years, say he is eccentric, impulsive, volatile and at times unstable, citing his love of guns and young women.


McAfee has said he believes authorities in Belize will kill him if he turns himself in for questioning. Belize’s prime minister has denied this and called him paranoid and “bonkers.”


“It’s a wild, wild country,” McAfee told Reuters in an interview in his hotel room just hours before his detention.


“Everyone sees one part of Belize,” he said. “They think it’s a wonderful, peaceful, lovely place, blue waters, so McAfee has got to be crazy. Maybe I am crazy. If I were, I wouldn’t know.”


In Belize, he was often seen with armed bodyguards dressed in camouflage, pistols tucked into his belt. McAfee’s slain neighbor had complained about the loud barking of dogs that guarded his exclusive beachside compound.


His run-in with authorities in Belize is a world away from a successful life in the United States, where the former Lockheed systems consultant started McAfee Associates in the late 1980s. McAfee has no relationship now with the company, which was sold to Intel Corp.


NO REGRETS


There was already a case against McAfee in Belize for possession of illegal firearms, and police had previously raided his property on suspicion he was running a lab to make illegal synthetic narcotics.


He says he has not taken drugs since 1983.


“(Before then) I took drugs constantly, 24 hours of the day, I took them for years and years. I was the worst drug abuser on the planet,” McAfee said. “Then I finally went to Alcoholics Anonymous, and that was the end of it.”


But he has no regrets about the path his life has taken, or the loss of the lion’s share of his fortune over the years and says he is happier now that he cares less for material things.


“My life has not declined,” he said. “My life has been on the increase ever since I decided that stuff – houses, money – doesn’t mean much. I had more money than I could spend in million lifetimes. Why would I care?”


McAfee says he has been persecuted by Belize’s ruling party because he wouldn’t pay out some $ 2 million to it.


“The misunderstanding of the severity of their request for money was my big mistake,” McAfee said. “Had I known that, I would maybe have said $ 2 million is way too much. Let’s negotiate something, just don’t rape me for the next seven months. Writing a check would have been a lot easier.”


The party has denied soliciting money from him.


McAfee has been living in the tiny Central American nation for about four years, and wants to return to live there eventually. But he says he is being framed, and denies any involvement in his neighbor’s killing.


“We had one disagreement about a dog. I had disagreements with all my neighbors about my dogs. I had a disagreement with myself about my dogs. They were noisy,” he said.


“Why would I leave behind the body and all the evidence?” he asked. “I’m not stupid.”


(Additional reporting by Gabriel Stargardter; Writing by Simon Gardner; Editing by Philip Barbara, Lisa Shumaker and Patrick Graham)


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Male artists lead 2013 Grammy nominations












NASHVILLE, Tennessee (Reuters) – Male artists led the nominations announced on Wednesday for the 2013 Grammys, as fun., Frank Ocean, Mumford & Sons, Jay-Z, Kanye West and Dan Auerbach from The Black Keys landed six nods each for music’s biggest awards.


The nominations for New York-based indie-pop band fun. – made up of Nate Ruess, Andrew Dost and Jack Antonoff – included the four main categories for record, song and album of the year, and best new artist.












fun., which also performed at the Grammy nominations concert with Janelle Monae, said it felt good to be recognized and “took pride” in its live performances.


“Tonight, all I wanted to do was get up and really give it our all … receiving the nomination is amazing and a culmination of hard work the three of us have put into this band,” lead singer Ruess told reporters backstage.


The group scored a huge hit with its first single, “We Are Young,” and then followed that up with its successful album “Some Nights” and single of the same name.


Joining it in the album, record of the year and best new artist categories was hip hop artist Ocean.


The 25-year-old rapper-singer made waves earlier this year after revealing his first love was a man, a groundbreaking move in the hip hop industry, which has faced criticism in the past for being hostile toward gays.


His debut album, “Channel Orange” was a critical and commercial success, debuting at No. 2 on the Billboard 200 album chart in July.


Ocean and fun. will be competing with blues-rock group Alabama Shakes, country singer Hunter Hayes and folk-rockers The Lumineers for the coveted best new artist title.


While young male artists made up a large portion of nominees in key categories, noticeably absent was 18-year-old Canadian singer Justin Bieber, one of 2012′s biggest pop music stars with chart-topping album “Believe” and singles such as “Boyfriend.”


The winners will be announced at the televised awards show in Los Angeles on February 10.


AFTER ADELE, MALE ARTISTS LEAD


After British singer Adele dominated the previous Grammy Awards with her juggernaut album “21,” male artists took the lead in the album of the year category, where Ocean and fun. are competing with The Black Keys, Mumford & Sons and Jack White.


British folk band Mumford & Sons, which scored six nominations both in 2011 and 2012 for its debut album, “Sigh No More,” landed six more nominations on Wednesday for its chart-topping sophomore album, “Babel,” which is the second biggest-selling album in the United States this year.


Ohio rock duo The Black Keys, formed by frontman Auerbach and drummer Patrick Carney, landed five nominations, while Auerbach also notched a non-classical producer of the year nomination for his work on four albums.


Blues-rocker Jack White, the former frontman of The White Stripes, picked up three nods for his chart-topping debut solo album “Blunderbuss.”


Rappers Jay-Z and Kanye West continued to pick up nods for their 2011 album, “Watch The Throne,” including best rap performance for “N****s in Paris.” Jay-Z also landed nods for collaborating on songs with Young Jeezy and Rihanna, while West scored multiple nominations for his song “Mercy.”


Kelly Clarkson was one of the few leading female nominees, picking up three nominations, including record of the year and best pop vocal album.


R&B singer Rihanna also landed three nods, including best solo pop performance for “Where Have You Been.”


Record of the year nominees saw an assortment of rock, pop and hip hop nominees, with Clarkson’s “Stronger” competing with The Black Keys‘ “Lonely Boy,” fun.’s “We Are Young,” Australian artist Gotye’s heartbreak hit “Somebody That I Used To Know,” Ocean’s “Thinkin Bout You,” and Taylor Swift’s “We Are Never Ever Getting Back Together.”


To be eligible for nominations this year, artists had to release their music between October 1, 2011, and September 30, 2012.


Adele, who swept the awards in February with six accolades including the top three, landed only one nomination this year for best pop solo performance, as she did not release any music in the eligibility time frame.


The nominations for the top awards and main categories were announced during an hour-long televised concert in Nashville for the first time, co-hosted by country-pop artist Swift and veteran Grammy host, rapper-actor LL Cool J.


Adding a twist to the announcements, Hayes sang the nominees for best pop album, a tight contest between Maroon 5, Clarkson, Pink, fun. and Florence and the Machine. Hayes picked up two nods for best new artist and best country vocal performance.


British rock legends The Who will receive the Grammy Lifetime Achievement Award in February.


(Writing by Piya Sinha-Roy; Editing by Peter Cooney and Lisa Shumaker)


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Celebrations planned as Wash. legalizes marijuana












SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.


Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington‘s law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.












Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle‘s Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.


“This is a big day because all our lives we’ve been living under the iron curtain of prohibition,” said Hempfest director Vivian McPeak. “The whole world sees that prohibition just took a body blow.”


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors’ offices. Those offices in King County, the state’s largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: “Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502.”


Thanks to a 2003 law, marijuana enforcement remains the department’s lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn’t prosecute people for having small amounts of marijuana.


Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. “The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a ‘Lord of the Rings’ marathon in the privacy of your own home, if you want to.”


Washington’s new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it’s banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


“The department’s responsibility to enforce the Controlled Substances Act remains unchanged,” said a statement issued Wednesday by the Seattle U.S. attorney’s office. “Neither states nor the executive branch can nullify a statute passed by Congress” — a non-issue, since the measures passed in Washington and Colorado don’t “nullify” federal law, which federal agents remain free to enforce.


The legal question is whether the establishment of a regulated marijuana market would “frustrate the purpose” of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Colorado’s measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state’s regulatory scheme is due to be up and running by October 2013.


___(equals)


Johnson can be reached at https://twitter.com/GeneAPseattle


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Fracking in the U.K.: Britain Looks to Boost Shale Gas












Could a European shale-gas revolution start in Britain? While efforts to drill gas from shale deposits have stalled on the Continent, the British government could soon give the go-ahead to drilling and provide tax breaks to encourage it.


Chancellor of the Exchequer George Osborne, scheduled to unveil a new government energy plan on Dec. 5, has said he wants to ensure that “Britain is not left behind” the U.S., where a shale-gas boom has dramatically lowered prices and ended the country’s dependence on imported gas.












Energy Secretary Ed Davey wants to lift a moratorium on hydraulic fracturing, the controversial drilling method known as fracking, that was imposed last year after drilling by Britain’s Cuadrilla Resources caused two minor earthquakes in northwestern England. Cuadrilla’s chief executive, Francis Egan, told London’s Telegraph newspaper on Dec. 1 that he was ready to “press on quickly” if the ban were ended.


The enthusiasm in Britain contrasts sharply with France, the only other Western European country with significant shale-gas reserves. French President François Hollande, elected in May, has promised to maintain a ban on fracking during his 5-year term. Poland also has shale-gas reserves, but early exploration has yielded disappointing results.


Drilling in Britain won’t start immediately. In his Dec. 5 presentation, Osborne is expected to call for consultations on what he has described previously as “a generous new tax regime” to encourage shale-gas development. He also will suggest creating an agency called the Office of Unconventional Gas to allow industry, consumer groups, and environmentalists to settle disputes and to regulate the sector, people familiar with the plan told Bloomberg News. Energy Secretary Davey has said that questions about regulatory oversight and the involvement of local communities should be addressed before drilling resumes.


Still, it’s clear the government has put shale gas on a fast track. Britain’s North Sea gas reserves are being depleted; they’re expected to decline from 40 percent of the current gas supply to only 20 percent by 2030, according to Bloomberg New Energy Finance. That will force the country to rely increasingly on imports from Africa and the Middle East. And British natural-gas customers are paying almost three times as much as their counterparts in the U.S., where a flood of shale-gas has sent prices plunging.


Cuadrilla estimates that the area it is exploring in Lancashire, in northwestern England, could contain 200 trillion cubic feet of gas—more gas than all of Iraq. “We can supply a quarter of the U.K.’s gas demand,” CEO Egan told the Telegraph. The company, whose chairman is former BP (BP) CEO John Browne, voluntarily suspended exploration in Lancashire after earthquakes there in April and May 2011 were linked to its drilling. The company and government officials have subsequently said they believe fracking can be carried out safely.


Opponents are already mobilizing. Hundreds of anti-fracking demonstrators protested in London and other cities on Dec. 1. Besides worrying about potential earthquakes and groundwater contamination, environmental activists say that shale-gas development will undermine efforts to develop nonpolluting renewable energy sources.


Advocates who expect to replicate the U.S. shale-gas boom are likely to be disappointed, though. More-stringent British environmental regulations and mineral-rights rules will add to development costs, says John Williams, an energy analyst at Pöyry Management Consulting in Oxford. In a recent study, Williams and two colleagues estimated that the planned development in Lancashire would lower British gas prices no more than 4 percent. “We’re not going to see anything like the price crash in the U.S.,” Williams says.


The Pöyry study, based on a review of data provided by Cuadrilla, estimated that Lancashire shale could supply 21 percent of Britain’s gas by 2030. That won’t harm the country’s efforts to reduce carbon emissions, Williams says, because it could reduce the need to burn coal. Gas “is the obvious backup fuel” when wind and solar power aren’t available because of weather conditions, he says. “If you are going to need gas, shale can be a source.”


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Facebook just realized it made a horrible mistake












Facebook (FB) announced on Tuesday that it will begin opening Facebook Messenger to consumers who do not have a Facebook account, starting in countries like India and South Africa, and later rolling out the service in the United States and Europe. This is a belated acknowledgement of a staggering strategic mistake Facebook made two years ago. That is when the messaging app competition was still wide open and giants like Facebook or Google (GOOG) could have entered the competition. WhatsApp, the leading messaging app firm, had just 1 million users as late as December 2009. By the end of 2010, that number had grown to 10 million. Right now, it likely tops 200 million, though there is no current official number on the matter.


SMS usage started peaking in countries like Netherlands in 2010. Companies like Facebook, Twitter and Google were being offered a giant new market on a silver platter with more than 3 billion consumers worldwide use texting on their phones and many of them started drifting away from basic SMS towards IP-based alternatives a few years ago. None of the behemoths saw or understood the opportunity.












They allowed the mobile messaging market to turn into a free-for-all between tiny start-ups like KakaoTalk, Kik, Viber, WhatsApp, etc. And with astonishing speed, the global market picked a winner and rallied around it. Back in early 2011, there was serious debate about the relative merits of different messaging apps and which one might ultimately edge ahead.


In December 2012, the competitive landscape is stark. Kik is not a Top 5 app in any country in the world. Viber is a Top 5 app in 21 countries, but they are countries like Barbados, Nepal and Tajikistan. WhatsApp is a Top 5 app in 141 countries, including the U.S,, U.K., Germany, Brazil and India. The only real weakness of WhatsApp lies in China, Japan and South Korea, where local champions still lead. But those local apps have zero chance of breaking out of their home markets.


The mobile messaging app competition is over. It turned into a red rout sometime during late 2011 and WhatsApp has emerged as the sole beneficiary of a textbook case of the network effect.


Facebook, Google and Twitter threw away their golden chance to create an SMS killer and grab hold of a billion users globally. It would have been so easy and cheap to develop a simple texting app in 2009, leverage the current user base of any of the IT giants and then watch the app soar to global prominence.


And it is so very, very hard to do now. Dislodging WhatsApp now would mean neutralizing a smartphone market penetration advantage that is hitting 80% in some markets. People often ask me why I’m so fixated on WhatsApp and the answer is simple: it’s the most popular and important mobile app in the world. And it beat Facebook, Twitter, Google and other major companies before they even realized there was an important war being waged.


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Ex-”Malcolm in the Middle” star Muniz, 26, suffers mini-stroke












LOS ANGELES (Reuters) – Former “Malcolm in the Middle” child star Frankie Muniz said on Tuesday he had suffered a mini-stroke, at the age of 26.


“I was in the hospital last Friday. I suffered a ‘Mini Stroke‘, which was not fun at all. Have to start taking care of my body! Getting old!,” Muniz said on Twitter.












Muniz put his acting career on hold six years ago to race cars for a living, and earlier this year he joined a rock band.


According to celebrity website TMZ.com, Muniz was taken ill in Arizona last Friday when friends noticed he was having trouble speaking and understanding.


Mini-strokes usually affect those over the age of 55. They are temporary interruptions of blood flow to part of the brain but do not kill brain tissue, according to the Mayo Clinic.


Muniz’s agent did not return calls for comment.


Muniz played the title role in the hit TV comedy “Malcolm in the Middle” for six years, and appeared in teen movies “Big Fat Liar” and “Agent Cody Banks.”


When the TV show ended its run in 2006, Muniz said he was stepping away from acting to pursue a full-time career as a race-car driver. Earlier his year he joined Pennsylvania-based indie band Kingsfoil as a drummer.


Muniz is due to turn 27 on Wednesday.


(Reporting by Jill Serjeant; editing by Matthew Lewis)


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Trafficked maids to order: The darker side of richer India












NEW DELHI, Dec 4 (TrustLaw) – Inside the crumbling housing estates of Shivaji Enclave, amid the boys playing cricket and housewives chatting from their balconies, winding staircases lead to places where lies a darker side to India‘s economic boom.


Three months ago, police rescued Theresa Kerketa from one of these tiny two-roomed flats. For four years, she was kept here by a placement agency for domestic maids, in between stints as a virtual slave to Delhi‘s middle-class homes.












“They sent me many places – I don’t even know the names of the areas,” said Kerketa, 45, from a village in Chhattisgarh state in central India. “Fifteen days here, one month there. The placement agent kept making excuses and kept me working. She took all my salary.”


Often beaten and locked in the homes she was sent to, Kerketa was forced to work long hours and denied contact with her family. She was not informed when her father and husband died. The police eventually found her when a concerned relative went to a local charity, which traced the agency and rescued her together with the police.


Abuse of migrant maids from Africa and Asia in the Middle East and parts of Southeast Asia is commonly reported.


But the story of Kerketa is the story of many maids and nannies in India, where a surging demand for domestic help is fuelling a business that, in large part, thrives on human trafficking by unregulated placement agencies.


As long as there are no laws to regulate the placement agencies or even define the rights of India’s unofficially estimated 90 million domestic workers, both traffickers and employers may act with impunity, say child and women’s rights activists and government officials.


Activists say the offences are on the rise and link it directly to the country’s economic boom over the last two decades.


“Demand for maids is increasing because of the rising incomes of families who now have money to pay for people to cook, clean and look after their children,” says Bhuwan Ribhu from Bachpan Bachao Andolan (Save the Childhood Movement), the charity that helped rescue Kerketa.


Economic reforms that began in the early 1990s have transformed the lifestyles of many Indian families. Now almost 30 percent of India’s 1.2 billion people are middle class and this is expected to surge to 45 percent by 2020.


Yet as people get wealthier, more women go out to work and more and more families live on their own without relatives to help them, the voracious demand for maids has outstripped supply.


BEHIND CLOSED DOORS


There are no reliable figures for how many people are trafficked for domestic servitude. The Indian government says 126,321 trafficked children were rescued from domestic work in 2011/12, a rise of almost 27 percent from the previous year. Activists say if you include women over 18 years, the figure could run into the hundreds of thousands.


The abuse is difficult to detect as it is hidden within average houses and apartments, and under-reported, because victims are often too fearful to go to the police. There were 3,517 incidents relating to human trafficking in India in 2011, says the National Crime Records Bureau, compared to 3,422 the previous year.


Conviction rates for typical offences related to trafficking – bonded labor, sexual exploitation, child labor and illegal confinement – are also low at around 20 percent. Cases can take up to two years to come to trial, by which time victims have returned home and cannot afford to return to come to court. Police investigations can be shoddy due to a lack of training and awareness about the seriousness of the crime.


Under pressure from civil society groups as well as media reports of cases of women and children trafficked not just to be maids, but also for prostitution and industrial labor, authorities have paid more attention in recent years.


In 2011, the government began setting up specialized anti-human trafficking units in police stations throughout the country.


There are now 225 units and another 110 due next year whose job it is to collect intelligence, maintain a database of offenders, investigate reports of missing persons and partner with charities in raids to rescue victims.


Parveen Kumari, director in charge of anti-trafficking at the ministry of home affairs, says so far, around 1,500 victims have been rescued from brick kilns, carpet weaving and embroidery factories, brothels, placement agencies and houses.


“We realize trafficking is a bigger issue now with greater demand for labor in the cities and these teams will help,” said Kumari. “The placement agencies are certainly under the radar.”


NATIONAL HEADLINES


The media is full of reports of minors and women lured from their villages by promises of a good life as maids in the cities. They are often sent by agencies to work in homes in Delhi, and its satellite towns such as Noida and Gurgaon, where they face a myriad of abuses.


In April, a 13-year-old maid heard crying for help from the balcony of a second floor flat in a residential complex in Delhi’s Dwarka area became a national cause célèbre.


The girl, from Jharkhand state, had been locked in for six days while her employers went holidaying in Thailand. She was starving and had bruises all over her body.


The child, who had been sold by a placement agency, is now in a government boarding school as her parents are too poor to look after her. The employers deny maltreatment, and the case is under investigation, said Shakti Vahini, the Delhi-based child rights charity which helped rescue her.


In October, the media reported the plight of a 16-year-old girl from Assam, who was also rescued by police and Shakti Vahini from a house in Delhi’s affluent Punjabi Bagh area. She had been kept inside the home for four years by her employer, a doctor. She said he would rape her and then give her emergency contraceptive pills. The doctor has disappeared.


ONE ON EVERY BLOCK


Groups like Save the Children and ActionAid estimate there are 2,300 placement agencies in Delhi alone, and less than one-sixth are legitimate.


“There are so many agencies and we hear so many stories, but we are not like that. We don’t keep the maids’ salaries and all are over 18,” said Purno Chander Das, owner of Das Nurse Bureau, which provides nurses and maids in Delhi’s Tughlakabad village.


The Das Nurse Bureau is registered with authorities – unlike many agencies operating from rented rooms or flats in slums or poorer neighborhoods like Shivaji Enclave in west Delhi. It is often to these places that maids are brought until a job is found.


There are no signboards, but neighbors point out the apartments that house the agencies and talk of the comings and goings of girls who stay for one or two days before being taken away.


“There is at least one agency in every block,” says Rohit, a man in his twenties, who lives in one of scores of dilapidated government-built apartment blocks in Shivaji Enclave.


With a commission fee of up to 30,000 rupees ($ 550) and a maids’ monthly salary of up to 5,000 rupees ($ 90), an agency can make more than $ 1,500 annually for each girl, say anti-trafficking groups.


A ledger recovered after one police raid, shown by the charity Bachpan Bachao Andolan to Thomson Reuters Foundation, had the names, passport pictures and addresses of 111 girls from villages in far-away states like West Bengal, Jharkhand, Assam and Chhattisgarh, most of them minors.


The Delhi state government has written a draft bill to help regulate and monitor placement agencies and has invited civil society groups to provide feedback.


But anti-trafficking groups say what is really needed a country-wide law for these agencies, which are not just mushrooming in cities like Delhi but also Mumbai and other towns and cities.


The legislation would specify minimum wages, proper living and working conditions and a mechanism for financial redress for unpaid salaries. It would also specify that placement agencies keep updated record of all domestic workers which would subject to routine inspection by the labor department.


In the meantime, victims like Theresa Kerketa just want to warn others.


“The agencies and their brokers tell you lies. They trap you in the city where you have no money and know no one,” said Kerketa, now staying with a relative in a slum on the outskirts of south Delhi as she awaits compensation.


“I will go back and tell others. It is better to stay in your village, be beaten by your husband and live as a poor person, than come to the city and suffer at the hands of the rich.”


(TrustLaw is a global news service covering human rights and governance issues and run by the Thomson Reuters Foundation, the charitable arm of Thomson Reuters)


(Editing by Sonya Hepinstall)


Health News Headlines – Yahoo! News


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Does Rupert Murdoch Know Something Tina Brown Doesn’t?












On Monday morning, News Corp. (NWS) executives announced they were pulling the plug on The Daily, Rupert Murdoch’s ambitious foray into tablet-only newsgathering, which launched amid lofty expectations in February 2011. The Daily will stop publishing on Dec. 15.


“From its launch, The Daily was a bold experiment in digital publishing and an amazing vehicle for innovation,” Murdoch said in a press release today. “Unfortunately, our experience was that we could not find a large enough audience quickly enough to convince us the business model was sustainable in the long term.”












But in the helter-skelter media world of 2012, one mogul’s unsustainable business model is another’s salvation. Exit Murdoch. Enter Barry Diller.


On Dec. 31, two weeks after the Daily drops out of tablet-only publishing, Diller’s Newsweek will publish its last print edition in favor of going digital only.


One of the keys to Newsweek’s future sustainability, Editor-in-Chief Tina Brown explained back in October, is to take advantage of the rise of tablet readers.


“Tablet-use has grown rapidly among our readers and with it the opportunity to sustain editorial excellence through swift, easy digital distribution—a superb global platform for our award-winning journalism,” wrote Brown. “By year’s end, tablet users in the United States alone are expected to exceed 70 million, up from 13 million just two years ago.”


No doubt, Murdoch wishes her well.


In the end, both visions (tablet journalism as a failure; tablet journalism as a savior) could be wrong. As tablets continue to proliferate among consumers, it’s likely the devices will serve as just one of the many outlets where publishers will need to reach digital readers.


The Daily missed the whole point of digital publication, which is that you can reach a vast, worldwide audience across a wide array of platforms without having to design entirely separate products for each one,” writes Will Oremus at Slate. “It’s one thing for general-interest magazines like Slate, Salon, Buzzfeed, or the Huffington Post to do away with the huge costs and constraints of a print product. Once you’ve done that, narrowing your focus to a single device limits your audience far more sharply than it limits your expenses.”


Businessweek.com — Top News


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