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Showing posts with label government. Show all posts
Showing posts with label government. Show all posts
Thursday
Wednesday
Do You Know a Child In a Detention Center or Shelter Facility?
Help us find out the facts about immigrant children being held by the government.
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Monday
Offshore Trove Exposes Trump-Russia links and Piggy Banks of the Wealthiest 1 Percent
By ICIJ
A trove of 13.4 million records exposes ties between Russia and U.S. President Donald Trump’s billionaire commerce secretary, the secret dealings of the chief fundraiser for Canadian Prime Minister Justin Trudeau and the offshore interests of the queen of England and more than 120 politicians around the world.
The leaked documents, dubbed the Paradise Papers, show how deeply the offshore financial system is entangled with the overlapping worlds of political players, private wealth and corporate giants, including Apple, Nike, Uber and other global companies that avoid taxes through increasingly imaginative bookkeeping maneuvers.
One offshore web leads to Trump’s commerce secretary, private equity tycoon Wilbur Ross, who has a stake in a shipping company that has received more than $68 million in revenue since 2014 from a Russian energy company co-owned by the son-in-law of Russian President Vladimir Putin.
In all, the offshore ties of more than a dozen Trump advisers, Cabinet members and major donors appear in the leaked data.
The new files come from two offshore services firms as well as from 19 corporate registries maintained by governments in jurisdictions that serve as waystations in the global shadow economy. The leaks were obtained by German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists and a network of more than 380 journalists in 67 countries.
The offshore industry makes “the poor poorer” and is “deepening wealth inequality,” said Brooke Harrington, a certified wealth manager and Copenhagen Business School professor who is the author of ‘Capital without Borders: Wealth Managers and the One Percent.’
“There is this small group of people who are not equally subject to the laws as the rest of us, and that’s on purpose,” Harrington said. These people “live the dream” of enjoying “the benefits of society without being subject to any of its constraints.”
The records expand on the revelations from the leak of offshore documents that spawned the 2016 Panama Papers investigation by ICIJ and its media partners. The new files shine a light on a different cast of underexplored island havens, including some with cleaner reputations and higher price tags, such as the Cayman Islands and Bermuda.
The most detailed revelations emerge in decades of corporate records from the white-shoe offshore law firm Appleby and corporate services provider Estera, two businesses that operated together under the Appleby name until Estera became independent in 2016.
At least 31,000 of the individual and corporate clients included in Appleby’s records are U.S. citizens or have U.S. addresses, more than from any other country. Appleby also counted clients from the United Kingdom, China and Canada among its biggest sources of business.
Nearly 7 million records from Appleby and affiliates cover the period from 1950 to 2016 and include emails, billion-dollar loan agreements and bank statements involving at least 25,000 entities connected to people in 180 countries. Appleby is a member of the “Offshore Magic Circle,” an informal clique of the planet’s leading offshore law practices. The firm was founded Bermuda and has offices in Hong Kong, Shanghai, the British Virgin Islands, the Cayman Islands and other offshore centers.
Appleby has a well-guarded 100-year reputation and has avoided public scrapes through a mixture of discretion and expensive client monitoring.
In contrast to Appleby’s public image, the files reveal a company that has provided services to risky clients from Iran, Russia and Libya, failed government audits that identified gaps in anti-money-laundering procedures and been fined in secret by the Bermuda financial regulator. Appleby did not reply to ICIJ’s detailed questions but released an online statement saying it had investigated ICIJ’s questions and is “satisfied that there is no evidence of any wrongdoing.”
The firm said it is “subject to frequent regulatory checks, and we are committed to achieving the high standards set by our regulators.”
The leaked cache of documents includes more than half a million files from Asiaciti Trust, a family-run offshore specialist that is headquartered in Singapore and has satellite offices from Samoa in the South Pacific to Nevis in the Caribbean.
The leaked files also include documents from government business registries in some of the world’s most secretive corporate havens in the Caribbean, the Pacific and Europe, such as Antigua and Barbuda, the Cook Islands and Malta. One-fifth of the world’s busiest secrecy jurisdictions are represented in these databases.
Queen Elizabeth II has invested millions of dollars in medical and consumer loan companies, Appleby’s files show. While the Queen’s private estate, the Duchy of Lancaster, provides some details of its investments in U.K. property, such as commercial buildings scattered across southern England, it has never disclosed details of its offshore investments.
“Yes, the Duchy was aware that the Jubilee Absolute Return Fund was run offshore,” said Chris Addock, chief finance officer of the Duchy of Lancaster.
The records show that as of 2007, the queen’s private estate invested in a Cayman Islands fund that in turn invested in a private equity company that controlled BrightHouse, a U.K. rent-to-own firm criticized by consumer watchdogs and members of Parliament for selling household goods to cash-strapped Britons on payment plans with interest rates as high as 99.9 percent.
Other royals and politicians with newly disclosed offshore ties include Queen Noor of Jordan, who was listed as the beneficiary of two trusts on the island of Jersey, including one that held her sprawling British estate; Sam Kutesa, Uganda’s foreign minister and a former U.N. General Assembly president, who set up an offshore trust in the Seychelles to manage his personal wealth; Brazil’s finance minister, Henrique de Campos Meirelles, who created a foundation in Bermuda “for charitable purposes”; and Antanas Guoga, a Lithuanian member of the European Parliament and professional poker player, who held a stake in an Isle of Man company whose other shareholders included a gambling mogul who settled a fraud lawsuit in the United States.
Wesley Clark, a one-time Democratic presidential hopeful and a retired four-star U.S. Army general who served as NATO’s supreme commander in Europe , was a director of an online gambling company with offshore subsidiaries, the files show.
A spokesman for Queen Elizabeth II told ICIJ partner The Guardian that the Duchy has an ongoing investment in the Cayman Island fund and was not aware of the investment in BrightHouse. The Queen voluntarily pays tax on income from the Duchy and its investments, the spokesman said.
Queen Noor told ICIJ that “all the bequests made to her and to her children by [the late King Hussein] have always been administered according to the highest ethical, legal and regulatory standards.”
Brazil’s Meirelles said the foundation he created does not benefit him personally and will support education charities after his death.
Guoga said he declared his investment in the Isle of Man company to authorities and sold the last of his shares in 2014.
“I thought you could avoid, not evade, taxes but I found it was not practical,” Kutesa told ICIJ’s media partner The Daily Monitor. He said he did nothing with the company. “ I told Appleby to close it many years ago.”
Clark did not reply to requests for comment.
In addition to disclosures about politicians and corporations, the files reveal details about the financial lives of the rich and famous – and the unknown. They include Microsoft co-founder Paul Allen’s yacht and submarines, eBay founder Pierre Omidyar’s Cayman Island investment vehicle, and music star Madonna’s shares in a medical supplies company. Pop singer and social justice activist Bono – listed under his full name, Paul Hewson – owned shares in a company registered in Malta that invested in shopping center in Lithuania, company records show. Other clients listed their occupations as dog groomer, plumber and wakeboard instructor.
Madonna and Allen did not reply to requests for comment. Omidyar, whose Omidyar Network donates to ICIJ, discloses his investment to tax authorities, a spokeswoman said. Bono was a “passive, minority investor” in the Malta company that closed down in 2015, a spokeswoman said.
The files reveal that Stephen Bronfman, Canadian Prime Minister Trudeau’s adviser and close friend, teamed up with Liberal Party stalwart Leo Kolber and Kolber’s son to quietly move millions of dollars to a Cayman trust. The offshore maneuvers may have avoided taxes in Canada, the United States and Israel, according to experts who reviewed some of the 3,000-plus files detailing the trust’s activities.
As the offshore riches grew, lawyers for Bronfman, the Kolbers and other wealthy interests lobbied Canada’s Parliament to fight legislative proposals to tax income from offshore trusts.
Bronfman remains a key fundraiser for Trudeau, who has championed openness in government and promised a crackdown on offshore tax dodging. In September, Trudeau told the U.N. General Assembly: “Right now, we have a system that encourages wealthy Canadians to use private corporations to pay a lower tax rate than middle-class Canadians. That’s not fair and we’re going to fix it.”
Kolber’s lawyers said in a letter to ICIJ’s partner CBC that “none of the transactions or entities at issue were effected or established to evade or even avoid taxation.” They added that the trusts “were always in full conformity with all applicable laws and requirements,” and said that no further comment would be provided by Stephen Bronfman. Trudeau’s office declined to comment.
In the United States, the files reveal personal or corporate offshore ties of key Trump associates who are charged with helping to put “America First.”
The Appleby files show how Ross, Trump’s commerce secretary, has used a chain of Cayman Islands entities to maintain a financial stake in Navigator Holdings, a shipping company whose top clients include the Kremlin-linked energy firm Sibur. Among Sibur’s key owners are Kirill Shamalov, Putin’s son-in-law, and Gennady Timchenko, a billionaire the U.S. government sanctioned in 2014 because of his links to Putin. Sibur is a major customer of Navigator, paying the company more than $23 million in 2016.
When he joined Trump’s Cabinet, Ross divested his interests in 80 companies. But he kept stakes in nine companies, including the four that connect him to Navigator and its Russian clients.
These revelations come against a backdrop of growing concerns about hidden Russian involvement in U.S. political affairs.
Sibur is “a company with crony connections,” said Daniel Fried, a Russia expert who has served in senior State Department posts in Republican and Democratic administrations. “Why would any officer of the U.S. government have any relationship with a Putin crony?”
A spokesman for Ross said that the Commerce Secretary never met Putin’s son-in-law or Sibur’s other owners and that he was not on the board of Navigator when it initiated its relationship with Sibur.
Ross recuses himself from matters that relate to international shipping, his spokesman said, and “has been generally supportive of the administration’s sanctions” against Russian entities.
The leaked files also led to other discoveries about U.S.-Russian business ties.
A document in the new cache of records helped steer ICIJ and its media partners to public documents and Panama Papers files that illuminate links between a pair of Kremlin-owned financial firms and major investments in Twitter and Facebook.
In 2011, the investment fund run by tech mogul Yuri Milner received $191 million from one of the Russian government firms, VTB Bank, and quietly invested that money in Twitter. Documents also show that a financial subsidiary of the Kremlin-controlled energy giant Gazprom funded a shell company that invested in a Milner-affiliated company that held roughly $1 billion in Facebook shares shortly before the social network’s 2012 initial public offering.
More recently, Milner invested $850,000 in Cadre, a real estate firm co-founded by Trump’s son-in-law and White House adviser, Jared Kushner.
Milner is a Russian citizen who lives in Silicon Valley. His ties to Twitter, Facebook and Kushner’s firm have been previously disclosed. But his links to the Kremlin financial institutions weren’t known.
VTB confirmed that it had used Milner’s fund to make an investment in Twitter. Facebook and Twitter said they had properly reviewed Milner’s investments.
In an interview, Milner said he was unaware of any possible involvement by the Gazprom subsidiary in any of his deals and that none of his many investments have been related to politics. He said he used his own money in the Kushner investment.
On the other side of the U.S. political divide, Ross’ predecessor as secretary of commerce, Penny Pritzker, pledged to sell investments to avoid conflicts of interest after she assumed her post in Democratic President Barack Obama’s Cabinet. The files show that soon after she received Senate confirmation in June 2013, Pritzker transferred her interests in two Bermuda companies to a firm that used the same mailing address as her private investment firm in Chicago. The company was “owned by trusts that are for the benefit of Penny Pritzker’s children,” according to Appleby’s files. These transfers may have fallen short of federal ethics standards for divestment, according to ethics expert Lawrence Noble.
Republican and Democratic donors alike appear in offshore records, including Randal Quarles, a GOP-leaning donor and the new Wall Street watchdog at the Federal Reserve. Quarles was an officer of two Cayman Island companies, including one that was involved in a loan deal with a Bermudan bank, N.T. Butterfield & Son. Until recently, Quarles held an indirect interest in the bank, which is under investigation by U.S. authorities for possible tax evasion by its American account holders. Private equity funds controlled by Democratic mega-donor George Soros, a hedge fund billionaire, use Appleby to help manage a web of offshore entities, including an investment in one company engaged in reinsurance, or insurance for insurers. His charitable organization, the Open Society Foundations, is a donor to ICIJ.
A spokesperson at the Federal Reserve said Quarles divested his indirect interest in the Bermudan bank after he was confirmed for the government post. Soros declined to comment. Pritzker did not respond to requests for comment.
In addition to top-flight international banks such as Barclays, Goldman Sachs and BNP Paribas, other elite Appleby clients have included the founder of one of the Middle East’s largest construction conglomerates, the Saad Group, and the Japanese company operating the crippled nuclear power plant in Fukushima.
The files reveal that America’s most profitable company, Apple Inc., shopped around Europe and the Caribbean for a new island tax shelter after a U.S. Senate inquiry found that the tech giant had avoided tens of billions of dollars in taxes by shifting profits into Irish subsidiaries.
In one email exchange, Apple’s lawyers asked Appleby to confirm that a possible move to one of six offshore tax havens would allow an Irish subsidiary to “conduct management activities . . . without being subject to taxation in these jurisdictions.” Apple declined to comment on details of the corporate reorganization but told ICIJ that it explained the new arrangements to government authorities and that the changes did not reduce its tax payments.
The files also reveal how big corporations cut their taxes by creating offshore shell companies to hold intangible assets such as the design of
One of Appleby’s top corporate clients was Glencore PLC, the world’s largest commodity trader. The files contain decades of deals, emails and multimillion-dollar loans to bankroll ventures in Russia, Latin America, Africa and Australia.
Glencore was such an important client that it once had its own room within Appleby’s offices in Bermuda.
Company board meeting minutes document how Glencore representatives leaned on Daniel Gertler, an Israeli businessman with high-level friends in the Democratic Republic of the Congo, to help seal a deal for a valuable copper mine. Glencore lent millions to a company, widely believed to belong to Gertler, described in a U.S. Department of Justice inquiry as a conduit for bribes. Gertler and Glencore were not named in the case.
Glencore said its background checks on Gertler were “extensive and thorough.” The Justice Department investigation “does not constitute evidence of anything against Mr. Gertler,” his lawyers said, adding that he “rejects absolutely any allegations of wrongdoing or criminality by him.” No loans were used improperly or for inappropriate purposes, Gertler’s lawyers said.
Appleby, for example, is one link in a chain of offshore actors who helped sports stars, Russian oligarchs and government officials to purchase jets, yachts and other luxury items. The offshore experts helped Arkady and Boris Rotenberg, two Russian billionaires and childhood friends of President Putin, buy jets worth more than $20 million in 2013. U.S authorities blacklisted the Rotenbergs in 2014 for their support of “Putin’s pet projects” and for having banked “high price contracts” through the Russian government. Appleby cut its ties with the brothers but, in one case, received approval from the Isle of Man government nearly two years after sanctions were imposed to disburse fees to keep one of the brothers’ companies on the business register. The Rotenbergs did not reply to Süddeutsche Zeitung’s requests for comment.
Clients prize Appleby for its expertise, efficiency and global network of professionals. Its peers repeatedly crown it Offshore Law Firm of the Year.
But decades of private documents also show that even one of the offshore industry’s brightest stars has hidden shortcomings: accepting questionable clients and failing to monitor multimillion-dollar money flows.
Bermuda financial regulators fined the firm’s trust unit for breaching anti-money-laundering rules, according to a confidential 2015 deal struck by Appleby and the regulator. This year, Appleby reached a $12.7 million settlement in a lawsuit in Canada in which nurses, firefighters and police officers accused the firm of unquestioningly circulating money on behalf of a client who designed an alleged alleged tax-avoidance scheme. Appleby and the alleged mastermind did not admit wrongdoing.
Family-owned Asiaciti advertises itself as helping clients to accumulate and “preserve wealth from the ravages of litigation,” political upheavals and family breakups. It has attracted Chinese millionaires, family members of a Kazakh official convicted of corruption and a broad swath of Americans, including doctors, poker players and a Colorado alfalfa farmer.
Appleby said in its online statement that it is committed to meeting regulators’ standards. Appleby provides advice to clients “on legitimate and lawful ways to conduct their business,” the firm said, and it does not tolerate illegal behavior.
“It is true that we are not infallible,” Appleby said. “Where we find that mistakes have happened we act quickly to put things right.”
Asiaciti did not respond to requests for comment.
Adrian Alhassan, a former compliance manager at Appleby’s Bermuda office told ICIJ that if someone is “hellbent” on breaking the law, there’s only so much an offshore services provider can do. “It’s not the FBI,” he said. If the law firm spent years doing background research on clients, it wouldn’t “get any work done.”
“It’s like cleaning a beach,” Alhassan said in a telephone interview. “If you say that you’ve cleaned it up, at the end of the day, can you really say that you’ve picked up every piece of seaweed?”
The documents from corporate registries in 19 such jurisdictions reveal company names and details, directors and real owners of companies created in many of the world’s busiest offshore hideouts.
The documents come from high- and low-profile bastions of financial secrecy such as Marshall Islands, Lebanon and St. Kitts and Nevis, a low-lying Caribbean country recently hit by hurricanes. Some jurisdictions’ records are publicly available but impossible to search by an individual’s name. Others, such as the Cayman Islands’ registry, charge more than $30 for a one-page record that provides only basic information. Six registries do not make information available online.
The leaked files contain more than a thousand records from Antigua and Barbuda, a Caribbean country that provides no online corporate information and more than 600,000 documents from the online registry of Barbados, which does not list shareholders or directors.
Over the past decade or more, the European Union and other international organizations have pressured offshore havens to reform their laws and require that offshore go-betweens aggressively screen clients. Progress has been slow, experts say, both because of the challenges of changing practices across a global web of jurisdictions and because powerful people and big companies benefit from the offshore system.
They do so at the expense of the many – shifting the burden of taxation to middle-income taxpayers and giving multinational corporations an advantage over smaller competitors. Where it hurts most is in nations struggling to provide the basics for their populations.
In West Africa, Burkina Faso officials who monitor the tax payments of the largest companies doing business there work from cramped offices with broken air-conditioning units. Burkina Faso is among the poorest countries in the world. On average, a citizen there earns less annually than the owner of an offshore company in Bermuda pays in registration fees. The country’s tax office sought $29 million in unpaid taxes and penalties from Glencore, the world’s 16th-largest company and a major user of Appleby’s services. Glencore protested and the penalty was reduced to $1.5 million.
Helping the rich get richer through offshore maneuvers is not a “benign benefit,” said Harrington, the Copenhagen Business School professor. “When the rich get richer, the poor get poorer, because individual wealthy people are not paying their fair share of taxes.”
“It won’t be lost on wealth managers and those in the offshore industry,” she said, “that we are reaching sort of French Revolution levels of inequality and injustice.”
A trove of 13.4 million records exposes ties between Russia and U.S. President Donald Trump’s billionaire commerce secretary, the secret dealings of the chief fundraiser for Canadian Prime Minister Justin Trudeau and the offshore interests of the queen of England and more than 120 politicians around the world.
The leaked documents, dubbed the Paradise Papers, show how deeply the offshore financial system is entangled with the overlapping worlds of political players, private wealth and corporate giants, including Apple, Nike, Uber and other global companies that avoid taxes through increasingly imaginative bookkeeping maneuvers.
One offshore web leads to Trump’s commerce secretary, private equity tycoon Wilbur Ross, who has a stake in a shipping company that has received more than $68 million in revenue since 2014 from a Russian energy company co-owned by the son-in-law of Russian President Vladimir Putin.
In all, the offshore ties of more than a dozen Trump advisers, Cabinet members and major donors appear in the leaked data.
The new files come from two offshore services firms as well as from 19 corporate registries maintained by governments in jurisdictions that serve as waystations in the global shadow economy. The leaks were obtained by German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists and a network of more than 380 journalists in 67 countries.
The promise of tax havens is secrecy – offshore locales create and oversee companies that often are difficult, or impossible, to trace back to their owners. While having an offshore entity is often legal, the built-in secrecy attracts money launderers, drug traffickers, kleptocrats and others who want to operate in the shadows. Offshore companies, often “shells” with no employees or office space, are also used in complex tax-avoidance structures that drain billions from national treasuries.There is this small group of people who are not equally subject to the laws as the rest of us, and that’s on purposeBrooke Harrington
The offshore industry makes “the poor poorer” and is “deepening wealth inequality,” said Brooke Harrington, a certified wealth manager and Copenhagen Business School professor who is the author of ‘Capital without Borders: Wealth Managers and the One Percent.’
“There is this small group of people who are not equally subject to the laws as the rest of us, and that’s on purpose,” Harrington said. These people “live the dream” of enjoying “the benefits of society without being subject to any of its constraints.”
The records expand on the revelations from the leak of offshore documents that spawned the 2016 Panama Papers investigation by ICIJ and its media partners. The new files shine a light on a different cast of underexplored island havens, including some with cleaner reputations and higher price tags, such as the Cayman Islands and Bermuda.
The most detailed revelations emerge in decades of corporate records from the white-shoe offshore law firm Appleby and corporate services provider Estera, two businesses that operated together under the Appleby name until Estera became independent in 2016.
At least 31,000 of the individual and corporate clients included in Appleby’s records are U.S. citizens or have U.S. addresses, more than from any other country. Appleby also counted clients from the United Kingdom, China and Canada among its biggest sources of business.
Nearly 7 million records from Appleby and affiliates cover the period from 1950 to 2016 and include emails, billion-dollar loan agreements and bank statements involving at least 25,000 entities connected to people in 180 countries. Appleby is a member of the “Offshore Magic Circle,” an informal clique of the planet’s leading offshore law practices. The firm was founded Bermuda and has offices in Hong Kong, Shanghai, the British Virgin Islands, the Cayman Islands and other offshore centers.
Appleby has a well-guarded 100-year reputation and has avoided public scrapes through a mixture of discretion and expensive client monitoring.
In contrast to Appleby’s public image, the files reveal a company that has provided services to risky clients from Iran, Russia and Libya, failed government audits that identified gaps in anti-money-laundering procedures and been fined in secret by the Bermuda financial regulator. Appleby did not reply to ICIJ’s detailed questions but released an online statement saying it had investigated ICIJ’s questions and is “satisfied that there is no evidence of any wrongdoing.”
The firm said it is “subject to frequent regulatory checks, and we are committed to achieving the high standards set by our regulators.”
The leaked cache of documents includes more than half a million files from Asiaciti Trust, a family-run offshore specialist that is headquartered in Singapore and has satellite offices from Samoa in the South Pacific to Nevis in the Caribbean.
The leaked files also include documents from government business registries in some of the world’s most secretive corporate havens in the Caribbean, the Pacific and Europe, such as Antigua and Barbuda, the Cook Islands and Malta. One-fifth of the world’s busiest secrecy jurisdictions are represented in these databases.
Taken as a whole, the leaks reveal offshore traces of spy planes purchased by the United Arab Emirates, the Barbados explosives company of a Canadian engineer who tried to build a “super gun” for Iraqi dictator Saddam Hussein and the Bermuda company of the late Marcial Maciel Degollado, the influential Mexican priest who founded the Catholic religious order the Legionaries of Christ and whose legacy was marred by allegations of child sexual abuse.Yes, the Duchy was aware that the Jubilee Absolute Return Fund was run offshoreChris Addock
Queen Elizabeth II has invested millions of dollars in medical and consumer loan companies, Appleby’s files show. While the Queen’s private estate, the Duchy of Lancaster, provides some details of its investments in U.K. property, such as commercial buildings scattered across southern England, it has never disclosed details of its offshore investments.
“Yes, the Duchy was aware that the Jubilee Absolute Return Fund was run offshore,” said Chris Addock, chief finance officer of the Duchy of Lancaster.
The records show that as of 2007, the queen’s private estate invested in a Cayman Islands fund that in turn invested in a private equity company that controlled BrightHouse, a U.K. rent-to-own firm criticized by consumer watchdogs and members of Parliament for selling household goods to cash-strapped Britons on payment plans with interest rates as high as 99.9 percent.
Other royals and politicians with newly disclosed offshore ties include Queen Noor of Jordan, who was listed as the beneficiary of two trusts on the island of Jersey, including one that held her sprawling British estate; Sam Kutesa, Uganda’s foreign minister and a former U.N. General Assembly president, who set up an offshore trust in the Seychelles to manage his personal wealth; Brazil’s finance minister, Henrique de Campos Meirelles, who created a foundation in Bermuda “for charitable purposes”; and Antanas Guoga, a Lithuanian member of the European Parliament and professional poker player, who held a stake in an Isle of Man company whose other shareholders included a gambling mogul who settled a fraud lawsuit in the United States.
Wesley Clark, a one-time Democratic presidential hopeful and a retired four-star U.S. Army general who served as NATO’s supreme commander in Europe , was a director of an online gambling company with offshore subsidiaries, the files show.
A spokesman for Queen Elizabeth II told ICIJ partner The Guardian that the Duchy has an ongoing investment in the Cayman Island fund and was not aware of the investment in BrightHouse. The Queen voluntarily pays tax on income from the Duchy and its investments, the spokesman said.
Queen Noor told ICIJ that “all the bequests made to her and to her children by [the late King Hussein] have always been administered according to the highest ethical, legal and regulatory standards.”
Brazil’s Meirelles said the foundation he created does not benefit him personally and will support education charities after his death.
Guoga said he declared his investment in the Isle of Man company to authorities and sold the last of his shares in 2014.
“I thought you could avoid, not evade, taxes but I found it was not practical,” Kutesa told ICIJ’s media partner The Daily Monitor. He said he did nothing with the company. “ I told Appleby to close it many years ago.”
Clark did not reply to requests for comment.
In addition to disclosures about politicians and corporations, the files reveal details about the financial lives of the rich and famous – and the unknown. They include Microsoft co-founder Paul Allen’s yacht and submarines, eBay founder Pierre Omidyar’s Cayman Island investment vehicle, and music star Madonna’s shares in a medical supplies company. Pop singer and social justice activist Bono – listed under his full name, Paul Hewson – owned shares in a company registered in Malta that invested in shopping center in Lithuania, company records show. Other clients listed their occupations as dog groomer, plumber and wakeboard instructor.
Madonna and Allen did not reply to requests for comment. Omidyar, whose Omidyar Network donates to ICIJ, discloses his investment to tax authorities, a spokeswoman said. Bono was a “passive, minority investor” in the Malta company that closed down in 2015, a spokeswoman said.
Justin Trudeau and Donald Trump
Wealthy people across the political spectrum use the offshore system.The files reveal that Stephen Bronfman, Canadian Prime Minister Trudeau’s adviser and close friend, teamed up with Liberal Party stalwart Leo Kolber and Kolber’s son to quietly move millions of dollars to a Cayman trust. The offshore maneuvers may have avoided taxes in Canada, the United States and Israel, according to experts who reviewed some of the 3,000-plus files detailing the trust’s activities.
As the offshore riches grew, lawyers for Bronfman, the Kolbers and other wealthy interests lobbied Canada’s Parliament to fight legislative proposals to tax income from offshore trusts.
Bronfman remains a key fundraiser for Trudeau, who has championed openness in government and promised a crackdown on offshore tax dodging. In September, Trudeau told the U.N. General Assembly: “Right now, we have a system that encourages wealthy Canadians to use private corporations to pay a lower tax rate than middle-class Canadians. That’s not fair and we’re going to fix it.”
Kolber’s lawyers said in a letter to ICIJ’s partner CBC that “none of the transactions or entities at issue were effected or established to evade or even avoid taxation.” They added that the trusts “were always in full conformity with all applicable laws and requirements,” and said that no further comment would be provided by Stephen Bronfman. Trudeau’s office declined to comment.
In the United States, the files reveal personal or corporate offshore ties of key Trump associates who are charged with helping to put “America First.”
The Appleby files show how Ross, Trump’s commerce secretary, has used a chain of Cayman Islands entities to maintain a financial stake in Navigator Holdings, a shipping company whose top clients include the Kremlin-linked energy firm Sibur. Among Sibur’s key owners are Kirill Shamalov, Putin’s son-in-law, and Gennady Timchenko, a billionaire the U.S. government sanctioned in 2014 because of his links to Putin. Sibur is a major customer of Navigator, paying the company more than $23 million in 2016.
When he joined Trump’s Cabinet, Ross divested his interests in 80 companies. But he kept stakes in nine companies, including the four that connect him to Navigator and its Russian clients.
These revelations come against a backdrop of growing concerns about hidden Russian involvement in U.S. political affairs.
Sibur is “a company with crony connections,” said Daniel Fried, a Russia expert who has served in senior State Department posts in Republican and Democratic administrations. “Why would any officer of the U.S. government have any relationship with a Putin crony?”
A spokesman for Ross said that the Commerce Secretary never met Putin’s son-in-law or Sibur’s other owners and that he was not on the board of Navigator when it initiated its relationship with Sibur.
Ross recuses himself from matters that relate to international shipping, his spokesman said, and “has been generally supportive of the administration’s sanctions” against Russian entities.
The leaked files also led to other discoveries about U.S.-Russian business ties.
A document in the new cache of records helped steer ICIJ and its media partners to public documents and Panama Papers files that illuminate links between a pair of Kremlin-owned financial firms and major investments in Twitter and Facebook.
In 2011, the investment fund run by tech mogul Yuri Milner received $191 million from one of the Russian government firms, VTB Bank, and quietly invested that money in Twitter. Documents also show that a financial subsidiary of the Kremlin-controlled energy giant Gazprom funded a shell company that invested in a Milner-affiliated company that held roughly $1 billion in Facebook shares shortly before the social network’s 2012 initial public offering.
More recently, Milner invested $850,000 in Cadre, a real estate firm co-founded by Trump’s son-in-law and White House adviser, Jared Kushner.
Milner is a Russian citizen who lives in Silicon Valley. His ties to Twitter, Facebook and Kushner’s firm have been previously disclosed. But his links to the Kremlin financial institutions weren’t known.
VTB confirmed that it had used Milner’s fund to make an investment in Twitter. Facebook and Twitter said they had properly reviewed Milner’s investments.
In an interview, Milner said he was unaware of any possible involvement by the Gazprom subsidiary in any of his deals and that none of his many investments have been related to politics. He said he used his own money in the Kushner investment.
On the other side of the U.S. political divide, Ross’ predecessor as secretary of commerce, Penny Pritzker, pledged to sell investments to avoid conflicts of interest after she assumed her post in Democratic President Barack Obama’s Cabinet. The files show that soon after she received Senate confirmation in June 2013, Pritzker transferred her interests in two Bermuda companies to a firm that used the same mailing address as her private investment firm in Chicago. The company was “owned by trusts that are for the benefit of Penny Pritzker’s children,” according to Appleby’s files. These transfers may have fallen short of federal ethics standards for divestment, according to ethics expert Lawrence Noble.
Republican and Democratic donors alike appear in offshore records, including Randal Quarles, a GOP-leaning donor and the new Wall Street watchdog at the Federal Reserve. Quarles was an officer of two Cayman Island companies, including one that was involved in a loan deal with a Bermudan bank, N.T. Butterfield & Son. Until recently, Quarles held an indirect interest in the bank, which is under investigation by U.S. authorities for possible tax evasion by its American account holders. Private equity funds controlled by Democratic mega-donor George Soros, a hedge fund billionaire, use Appleby to help manage a web of offshore entities, including an investment in one company engaged in reinsurance, or insurance for insurers. His charitable organization, the Open Society Foundations, is a donor to ICIJ.
A spokesperson at the Federal Reserve said Quarles divested his indirect interest in the Bermudan bank after he was confirmed for the government post. Soros declined to comment. Pritzker did not respond to requests for comment.
Boardroom secrets
When Appleby is not serving the interests of some of the world’s wealthiest individuals, it provides nuts-and-bolts legal help to corporations that seek to reduce their taxes in the countries where they do business. Appleby is not a tax adviser, but the firm plays a role in tax programs used by companies across the world.In addition to top-flight international banks such as Barclays, Goldman Sachs and BNP Paribas, other elite Appleby clients have included the founder of one of the Middle East’s largest construction conglomerates, the Saad Group, and the Japanese company operating the crippled nuclear power plant in Fukushima.
The files reveal that America’s most profitable company, Apple Inc., shopped around Europe and the Caribbean for a new island tax shelter after a U.S. Senate inquiry found that the tech giant had avoided tens of billions of dollars in taxes by shifting profits into Irish subsidiaries.
In one email exchange, Apple’s lawyers asked Appleby to confirm that a possible move to one of six offshore tax havens would allow an Irish subsidiary to “conduct management activities . . . without being subject to taxation in these jurisdictions.” Apple declined to comment on details of the corporate reorganization but told ICIJ that it explained the new arrangements to government authorities and that the changes did not reduce its tax payments.
The files also reveal how big corporations cut their taxes by creating offshore shell companies to hold intangible assets such as the design of
One of Appleby’s top corporate clients was Glencore PLC, the world’s largest commodity trader. The files contain decades of deals, emails and multimillion-dollar loans to bankroll ventures in Russia, Latin America, Africa and Australia.
Glencore was such an important client that it once had its own room within Appleby’s offices in Bermuda.
Company board meeting minutes document how Glencore representatives leaned on Daniel Gertler, an Israeli businessman with high-level friends in the Democratic Republic of the Congo, to help seal a deal for a valuable copper mine. Glencore lent millions to a company, widely believed to belong to Gertler, described in a U.S. Department of Justice inquiry as a conduit for bribes. Gertler and Glencore were not named in the case.
Glencore said its background checks on Gertler were “extensive and thorough.” The Justice Department investigation “does not constitute evidence of anything against Mr. Gertler,” his lawyers said, adding that he “rejects absolutely any allegations of wrongdoing or criminality by him.” No loans were used improperly or for inappropriate purposes, Gertler’s lawyers said.
Offshore operatives
The offshore industry is a globe-circling labyrinth of accountants, bankers, money managers, lawyers and middlemen who get paid to serve the interests of the rich and well-connected.Appleby, for example, is one link in a chain of offshore actors who helped sports stars, Russian oligarchs and government officials to purchase jets, yachts and other luxury items. The offshore experts helped Arkady and Boris Rotenberg, two Russian billionaires and childhood friends of President Putin, buy jets worth more than $20 million in 2013. U.S authorities blacklisted the Rotenbergs in 2014 for their support of “Putin’s pet projects” and for having banked “high price contracts” through the Russian government. Appleby cut its ties with the brothers but, in one case, received approval from the Isle of Man government nearly two years after sanctions were imposed to disburse fees to keep one of the brothers’ companies on the business register. The Rotenbergs did not reply to Süddeutsche Zeitung’s requests for comment.
Clients prize Appleby for its expertise, efficiency and global network of professionals. Its peers repeatedly crown it Offshore Law Firm of the Year.
But decades of private documents also show that even one of the offshore industry’s brightest stars has hidden shortcomings: accepting questionable clients and failing to monitor multimillion-dollar money flows.
Bermuda financial regulators fined the firm’s trust unit for breaching anti-money-laundering rules, according to a confidential 2015 deal struck by Appleby and the regulator. This year, Appleby reached a $12.7 million settlement in a lawsuit in Canada in which nurses, firefighters and police officers accused the firm of unquestioningly circulating money on behalf of a client who designed an alleged alleged tax-avoidance scheme. Appleby and the alleged mastermind did not admit wrongdoing.
Family-owned Asiaciti advertises itself as helping clients to accumulate and “preserve wealth from the ravages of litigation,” political upheavals and family breakups. It has attracted Chinese millionaires, family members of a Kazakh official convicted of corruption and a broad swath of Americans, including doctors, poker players and a Colorado alfalfa farmer.
The leaked files from Asiaciti reveal how the firm set up trusts in the Cook Islands for Kevin Trudeau, a U.S. infomercial frontman who sold millions of copies of self-help books such as “The Weight-Loss Cure ‘They’ Don’t Want You to Know About.” In 2014, a Chicago judge sentenced Trudeau to 10 years in federal prison for criminal contempt, calling him a shameless fraudster who was “deceitful to the core” and once even used his mother’s Social Security number in one of his scams.If you say that you’ve cleaned it up, at the end of the day, can you really say that you’ve picked up every piece of seaweed?Adrian Alhassan
Appleby said in its online statement that it is committed to meeting regulators’ standards. Appleby provides advice to clients “on legitimate and lawful ways to conduct their business,” the firm said, and it does not tolerate illegal behavior.
“It is true that we are not infallible,” Appleby said. “Where we find that mistakes have happened we act quickly to put things right.”
Asiaciti did not respond to requests for comment.
Adrian Alhassan, a former compliance manager at Appleby’s Bermuda office told ICIJ that if someone is “hellbent” on breaking the law, there’s only so much an offshore services provider can do. “It’s not the FBI,” he said. If the law firm spent years doing background research on clients, it wouldn’t “get any work done.”
“It’s like cleaning a beach,” Alhassan said in a telephone interview. “If you say that you’ve cleaned it up, at the end of the day, can you really say that you’ve picked up every piece of seaweed?”
Deepening inequality
Tax havens’ secrecy laws entice those who wish to place their wealth and dealings beyond the reach of regulators, investigators and the tax collectors.The documents from corporate registries in 19 such jurisdictions reveal company names and details, directors and real owners of companies created in many of the world’s busiest offshore hideouts.
The documents come from high- and low-profile bastions of financial secrecy such as Marshall Islands, Lebanon and St. Kitts and Nevis, a low-lying Caribbean country recently hit by hurricanes. Some jurisdictions’ records are publicly available but impossible to search by an individual’s name. Others, such as the Cayman Islands’ registry, charge more than $30 for a one-page record that provides only basic information. Six registries do not make information available online.
The leaked files contain more than a thousand records from Antigua and Barbuda, a Caribbean country that provides no online corporate information and more than 600,000 documents from the online registry of Barbados, which does not list shareholders or directors.
Over the past decade or more, the European Union and other international organizations have pressured offshore havens to reform their laws and require that offshore go-betweens aggressively screen clients. Progress has been slow, experts say, both because of the challenges of changing practices across a global web of jurisdictions and because powerful people and big companies benefit from the offshore system.
They do so at the expense of the many – shifting the burden of taxation to middle-income taxpayers and giving multinational corporations an advantage over smaller competitors. Where it hurts most is in nations struggling to provide the basics for their populations.
In West Africa, Burkina Faso officials who monitor the tax payments of the largest companies doing business there work from cramped offices with broken air-conditioning units. Burkina Faso is among the poorest countries in the world. On average, a citizen there earns less annually than the owner of an offshore company in Bermuda pays in registration fees. The country’s tax office sought $29 million in unpaid taxes and penalties from Glencore, the world’s 16th-largest company and a major user of Appleby’s services. Glencore protested and the penalty was reduced to $1.5 million.
Helping the rich get richer through offshore maneuvers is not a “benign benefit,” said Harrington, the Copenhagen Business School professor. “When the rich get richer, the poor get poorer, because individual wealthy people are not paying their fair share of taxes.”
“It won’t be lost on wealth managers and those in the offshore industry,” she said, “that we are reaching sort of French Revolution levels of inequality and injustice.”
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Friday
Stop being afraid of more government. It’s exactly what we need.
By Fareed Zakaria
Seeing the devastating effects of Hurricanes
Harvey and Irma and of wildfires out West, one cannot help but think
about the crucial role that government plays in our lives. But while we
accept, even celebrate, the role of government in the wake of such
disasters, we are largely blind to the need for government to mitigate
these kinds of crises in the first place.
Ever
since President Ronald Reagan, much of the United States has embraced
an ideological framework claiming that government is the source of our
problems. Reagan famously quipped, “The nine most terrifying words in the English language are: I’m from the government, and I’m here to help.”
Reagan
argued for a retreat from the vision of an activist state and advocated
instead a strictly limited role for government, one dedicated to core
functions such as national defense. Outside of these realms, he
believed, government should simply encourage the private sector and
market forces.
Reagan’s worldview grew out of the 1970s — a period marked by fiscal
mismanagement, government overreach and slowing growth. It might have
been the right attitude for its time.
But it has stayed in place for
decades as a rigid ideology, even though we have entered a new age in
which America has faced a very different set of challenges, often
desperately requiring an activist government. This has been a bipartisan
abdication of responsibility.
For decades now, we have watched as stagnant
wage growth for 90 percent of Americans has been coupled with
supercharged growth for the richest few, leading to widening inequality
on a scale not seen since the Gilded Age. It has been assumed that the
federal government could do nothing about this expanding gap, despite
much evidence to the contrary.
We
have watched China enter the global trade system and take advantage of
its access to Western markets and capital, while still maintaining a
massively controlled internal economy and pursuing predatory trade
practices. And we have assumed that the U.S. government can’t do
anything about it, because any action would be protectionist.
We
watched as financial institutions took on more and more risk, with
other people’s money, effectively gambling in a heads-I-win,
tails-you-lose system. Any talk of regulation was seen as socialist.
Even after the system blew up, causing the worst economic crisis since
the Great Depression, the calls soon came to deregulate the financial
sector once again because, after all, government regulation is obviously
bad.
In this same period, technology companies have
grown in size and scale, often using first-mover advantage to establish
quasi-monopolies and quash competition. The digital economy was supposed
to empower the individual entrepreneur, but it has instead become one
in which four or five companies utterly dominate the global landscape. A
new technology company today aspires simply to be bought by Google or
Facebook. And we assume that the federal government should have had no
role in shaping this vast new economy. That would be activist and bad.
Better for government to simply observe the process, like a passive
spectator watching a new Netflix drama.
And
then there is climate. These hurricanes have not been caused by global
warming, but their frequency and intensity have likely been magnified by
climate change. Particularly calamitous hurricanes have their names
retired, and in the last 20 years there have been about as many names retired as in the preceding 40 years. California has had more than 6,400 wildfires this year. The 17 hottest years on record have all taken place in the past two decades.
And
yet, we have been wary of too much government activism. This is true
not just in tackling climate change but in other areas that have
contributed to the storms’ destructive power.
Houston chose
not to have any kind of zoning that limited development, even in
flood-prone areas, paving over thousands of acres of wetlands that used
to absorb rainwater and curb flooding. The chemical industry has been
able to persuade Washington to exercise a light regulatory touch, so
there is limited protection against fires and contamination, something
that was made abundantly clear
in the past couple of weeks. And now, of course, low-tax and
low-regulation Texas has come to the federal government, hat in hand,
asking for more than $150 billion to rebuild its devastated state.
We are living in an age of revolutions, natural and human, that are
buffeting individuals and communities. We need government to be more
than a passive observer of these trends and forces. It needs to actively
shape and manage them. Otherwise, the ordinary individual will be
powerless. I imagine that this week, most people in Texas, Florida and
Puerto Rico would be delighted to hear the words “I’m from the
government, and I’m here to help.”
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Wednesday
Nixon Forces Firing of Cox; Richardson, Ruckelshaus Quit
President Abolishes Prosecutor's Office; FBI Seals Records
By Carroll Kilpatrick
Washington Post Staff Writer
Sunday, October 21, 1973; Page A01
In the most traumatic government upheaval of the Watergate crisis, President Nixon yesterday discharged Special Prosecutor Archibald Cox and accepted the resignations of Attorney General Elliot L. Richardson and Deputy Attorney General William D. Ruckelshaus.
The President also abolished the office of the special prosecutor and turned over to the Justice Department the entire responsibility for further investigation and prosecution of suspects and defendants in Watergate and related cases.
Shortly after the White House announcement, FBI agents sealed off the offices of Richardson and Ruckelshaus in the Justice Department and at Cox's headquarters in an office building on K Street NW.
An FBI spokesman said the agents moved in "at the request of the White House."
Agents told staff members in Cox's office they would be allowed to take out only personal papers. A Justice Department official said the FBI agents and building guards at Richardson's and Ruckelshaus' offices were there "to be sure that nothing was taken out."
Richardson resigned when Mr. Nixon instructed him to fire Cox and Richardson refused. When the President then asked Ruckelshaus to dismiss Cox, he refused, White House spokesman Ronald L. Ziegler said, and he was fired. Ruckelshaus said he resigned.
Finally, the President turned to Solicitor General Robert H. Bork, who by law becomes acting Attorney General when the Attorney General and deputy attorney general are absent, and he carried out the President's order to fire Cox. The letter from the President to Bork also said Ruckelshaus resigned.
These dramatic developments were announced at the White House at 8:25 p.m. after Cox had refused to accept or comply with the terms of an agreement worked out by the President and the Senate Watergate committee under which summarized material from the White House Watergate tapes would be turned over to Cox and the Senate committee.
In announcing the plan Friday night, the President ordered Cox to make no further effort to obtain tapes or other presidential documents.
Cox responded that he could not comply with the President's instructions and elaborated on his refusal and vowed to pursue the tape recordings at a televised news conference yesterday.
That set in motion the chain of events that resulted in the departure of Cox and the two top officials of the Justice Department and immediately raised prospects that the President himself might be impeached or forced to resign.
In a statement last night, Cox said: "Whether ours shall continue to be a government of laws and not of men is now for Congress and ultimately the American people."
The action raised new questions as to whether Congress would proceed to confirm House Minority Leader Gerald R. Ford of Michigan to be Vice President or leave Speaker of the House Carl Albert (D-Okla.) next in line of succession to the highest office in the land.
Richardson met at the White House in the late afternoon with Mr. Nixon and at 8:25 p.m. Ziegler appeared in the White House press room to read a statement outlining the President's decisions.
The President discharged Cox because he "refused to comply with instructions" the President gave him Friday night through the Attorney General, Ziegler said.
Furthermore, Ziegler said, the office of special prosecutor was abolished and its functions have been turned over to the Department of Justice.
The department will carry out the functions of the prosecutor's office "with thoroughness and vigor," Ziegler said.
Mr. Nixon sought to avoid a constitutional confrontation by the action he announced Friday, the press secretary said, to give the courts the information from the tapes which the President had considered privileged.
That action was accepted by "responsible leaders in the Congress and in the country," Ziegler commented, but the special prosecutor "defied" the President's instructions "at a time of serious world crisis" and made it "necessary" for the President to discharge him.
Before taking action, Ziegler said, the President met with Richardson to instruct him to dismiss Cox, but Richardson felt he could not do so because it conflicted with the promise he had made to the Senate, Ziegler said.
After Richardson submitted his resignation, the President directed Ruckelshaus to dismiss Cox. When Ruckelshaus refused to carry out the President's directive, he also was "discharged," Ziegler said. The President's letter to Bork said Ruckelshaus resigned.
Mr. Nixon then directed Bork to carry out the instruction. Bork did so in a two-paragraph letter to Cox, in which he said that at the instruction of the President he was "discharging you, effective at once, from your position as special prosecutor, Watergate special prosecution force."
Bork signed his letter as "acting Attorney General."
Richardson told the President in his letter that he was resigning with "deep regret." He explained that when named Attorney General "you gave me the authority to name a special prosecutor."
"At many points throughout the nomination hearings, I reaffirmed my intention to assure the independence of the special prosecutor," Richardson said.
He said he promised that Cox would not be dismissed except for "extraordinary improprieties."
"While I fully respect the reasons that have led you to conclude that the special prosecutor must be discharged, I trust that you understand that I could not in the light of these firm and repeated commitments carry out your direction that this be done," Richardson said.
Richardson expressed "lasting gratitude" to the President, under whom he also served as under secretary of state, Secretary of Health, Education and Welfare and Secretary of Defense. He became Attorney General in May after the resignation of Richard G. Kleindienst, who explained that because of his close association with former Attorney General John N. Mitchell and others involved in Watergate he did not believe he should stay in the post and carry out their prosecution.
"It has been a privilege to share in your efforts to make the structure of world peace more stable and the structure of our own government more responsive," Richardson wrote Mr. Nixon.
"I believe profoundly in the rightness and importance of those efforts, and I trust that they will meet with increasing success in the remaining years of your presidency."
The President replied with a one-sentence letter, addressed "Dear Elliott." It said: "It is with the deepest regret and with an understanding of the circumstances which brought you to your decision that I accept your resignation."
The White House did not release an exchange of letters between Ruckelshaus and the President. But Ruckelshaus wrote a resignation letter and released it.
In a letter to Bork, the President, noting that by law he was acting Attorney General, said that Cox had "made it apparent that he will not comply with the instructions I issued to him."
"Clearly the government of the United States cannot function if employees of the executive branch are free to ignore in this fashion the instructions of the President," Mr. Nixon wrote.
"Accordingly, in your capacity of acting Attorney General, I direct you to discharge Mr. Cox immediately and to take all steps necessary to return to the Department of Justice the functions now being performed by the Watergate Special Prosecution Force.
"It is my expectation that the Department of Justice will continue with full vigor the investigations and prosecutions that had been entrusted to the Watergate special prosecution force."
At the Justice Department, where there were repeated requests by newsmen to interview Richardson and Ruckelshaus, department spokesman John W. Hushen said they had "no desire to come out and talk to newsmen."
Hushen quoted Bork: "All I will say is that I carried out the President's directive."
Hushen said that Richardson would hold a news conference "within a few days." Beginning about 8 p.m., Richardson spent an hour or so calling "relatives, friends and associates," Hushen said.
White House aides, visibly shocked by the developments, argued that when direct quotations from the presidential tapes are released they will restore confidence in the President.
Sen. John Stennis (D-Miss.), picked by Mr. Nixon to listen to all the tapes, will have "unlimited" access to the pertinent recordings and can decide what should or should not be disclosed.
Stennis is expected to begin listening to them soon, possibly early this week. Those requested by the special prosecutor run 10 hours and one minute. Stennis may decide to listen to all or parts of them more than once. He will be the only one to do so. The President's statement on the tapes and excerpts from them will be delivered to the U.S. District Court here and to the Senate Watergate committee at the same time, officials said.
By Carroll Kilpatrick
Washington Post Staff Writer
Sunday, October 21, 1973; Page A01
In the most traumatic government upheaval of the Watergate crisis, President Nixon yesterday discharged Special Prosecutor Archibald Cox and accepted the resignations of Attorney General Elliot L. Richardson and Deputy Attorney General William D. Ruckelshaus.
The President also abolished the office of the special prosecutor and turned over to the Justice Department the entire responsibility for further investigation and prosecution of suspects and defendants in Watergate and related cases.
Shortly after the White House announcement, FBI agents sealed off the offices of Richardson and Ruckelshaus in the Justice Department and at Cox's headquarters in an office building on K Street NW.
An FBI spokesman said the agents moved in "at the request of the White House."
Agents told staff members in Cox's office they would be allowed to take out only personal papers. A Justice Department official said the FBI agents and building guards at Richardson's and Ruckelshaus' offices were there "to be sure that nothing was taken out."
Richardson resigned when Mr. Nixon instructed him to fire Cox and Richardson refused. When the President then asked Ruckelshaus to dismiss Cox, he refused, White House spokesman Ronald L. Ziegler said, and he was fired. Ruckelshaus said he resigned.
Finally, the President turned to Solicitor General Robert H. Bork, who by law becomes acting Attorney General when the Attorney General and deputy attorney general are absent, and he carried out the President's order to fire Cox. The letter from the President to Bork also said Ruckelshaus resigned.
These dramatic developments were announced at the White House at 8:25 p.m. after Cox had refused to accept or comply with the terms of an agreement worked out by the President and the Senate Watergate committee under which summarized material from the White House Watergate tapes would be turned over to Cox and the Senate committee.
In announcing the plan Friday night, the President ordered Cox to make no further effort to obtain tapes or other presidential documents.
Cox responded that he could not comply with the President's instructions and elaborated on his refusal and vowed to pursue the tape recordings at a televised news conference yesterday.
That set in motion the chain of events that resulted in the departure of Cox and the two top officials of the Justice Department and immediately raised prospects that the President himself might be impeached or forced to resign.
In a statement last night, Cox said: "Whether ours shall continue to be a government of laws and not of men is now for Congress and ultimately the American people."
The action raised new questions as to whether Congress would proceed to confirm House Minority Leader Gerald R. Ford of Michigan to be Vice President or leave Speaker of the House Carl Albert (D-Okla.) next in line of succession to the highest office in the land.
Richardson met at the White House in the late afternoon with Mr. Nixon and at 8:25 p.m. Ziegler appeared in the White House press room to read a statement outlining the President's decisions.
The President discharged Cox because he "refused to comply with instructions" the President gave him Friday night through the Attorney General, Ziegler said.
Furthermore, Ziegler said, the office of special prosecutor was abolished and its functions have been turned over to the Department of Justice.
The department will carry out the functions of the prosecutor's office "with thoroughness and vigor," Ziegler said.
Mr. Nixon sought to avoid a constitutional confrontation by the action he announced Friday, the press secretary said, to give the courts the information from the tapes which the President had considered privileged.
That action was accepted by "responsible leaders in the Congress and in the country," Ziegler commented, but the special prosecutor "defied" the President's instructions "at a time of serious world crisis" and made it "necessary" for the President to discharge him.
Before taking action, Ziegler said, the President met with Richardson to instruct him to dismiss Cox, but Richardson felt he could not do so because it conflicted with the promise he had made to the Senate, Ziegler said.
After Richardson submitted his resignation, the President directed Ruckelshaus to dismiss Cox. When Ruckelshaus refused to carry out the President's directive, he also was "discharged," Ziegler said. The President's letter to Bork said Ruckelshaus resigned.
Mr. Nixon then directed Bork to carry out the instruction. Bork did so in a two-paragraph letter to Cox, in which he said that at the instruction of the President he was "discharging you, effective at once, from your position as special prosecutor, Watergate special prosecution force."
Bork signed his letter as "acting Attorney General."
Richardson told the President in his letter that he was resigning with "deep regret." He explained that when named Attorney General "you gave me the authority to name a special prosecutor."
"At many points throughout the nomination hearings, I reaffirmed my intention to assure the independence of the special prosecutor," Richardson said.
He said he promised that Cox would not be dismissed except for "extraordinary improprieties."
"While I fully respect the reasons that have led you to conclude that the special prosecutor must be discharged, I trust that you understand that I could not in the light of these firm and repeated commitments carry out your direction that this be done," Richardson said.
Richardson expressed "lasting gratitude" to the President, under whom he also served as under secretary of state, Secretary of Health, Education and Welfare and Secretary of Defense. He became Attorney General in May after the resignation of Richard G. Kleindienst, who explained that because of his close association with former Attorney General John N. Mitchell and others involved in Watergate he did not believe he should stay in the post and carry out their prosecution.
"It has been a privilege to share in your efforts to make the structure of world peace more stable and the structure of our own government more responsive," Richardson wrote Mr. Nixon.
"I believe profoundly in the rightness and importance of those efforts, and I trust that they will meet with increasing success in the remaining years of your presidency."
The President replied with a one-sentence letter, addressed "Dear Elliott." It said: "It is with the deepest regret and with an understanding of the circumstances which brought you to your decision that I accept your resignation."
The White House did not release an exchange of letters between Ruckelshaus and the President. But Ruckelshaus wrote a resignation letter and released it.
In a letter to Bork, the President, noting that by law he was acting Attorney General, said that Cox had "made it apparent that he will not comply with the instructions I issued to him."
"Clearly the government of the United States cannot function if employees of the executive branch are free to ignore in this fashion the instructions of the President," Mr. Nixon wrote.
"Accordingly, in your capacity of acting Attorney General, I direct you to discharge Mr. Cox immediately and to take all steps necessary to return to the Department of Justice the functions now being performed by the Watergate Special Prosecution Force.
"It is my expectation that the Department of Justice will continue with full vigor the investigations and prosecutions that had been entrusted to the Watergate special prosecution force."
At the Justice Department, where there were repeated requests by newsmen to interview Richardson and Ruckelshaus, department spokesman John W. Hushen said they had "no desire to come out and talk to newsmen."
Hushen quoted Bork: "All I will say is that I carried out the President's directive."
Hushen said that Richardson would hold a news conference "within a few days." Beginning about 8 p.m., Richardson spent an hour or so calling "relatives, friends and associates," Hushen said.
White House aides, visibly shocked by the developments, argued that when direct quotations from the presidential tapes are released they will restore confidence in the President.
Sen. John Stennis (D-Miss.), picked by Mr. Nixon to listen to all the tapes, will have "unlimited" access to the pertinent recordings and can decide what should or should not be disclosed.
Stennis is expected to begin listening to them soon, possibly early this week. Those requested by the special prosecutor run 10 hours and one minute. Stennis may decide to listen to all or parts of them more than once. He will be the only one to do so. The President's statement on the tapes and excerpts from them will be delivered to the U.S. District Court here and to the Senate Watergate committee at the same time, officials said.
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Sunday
President Barack Obama Weekly Address May 28, 2016 (Video/Transcript)
President Barack Obama
Weekly Address
The White House
May 28, 2016
Hi, everybody. Right now, there are American troops serving in harm’s
way and standing sentry around the world. There are veterans who’ve
served honorably in times of war and peace, and often came home bearing
the invisible and visible wounds of war. They may not speak the loudest
about their patriotism – they let their actions do that. And the right
time to think of these men and women, and thank them for their service
and sacrifice, is every day of the year.The White House
May 28, 2016
Memorial Day, which we’ll observe Monday, is different. It’s the day we remember those who never made it home; those who never had the chance to take off the uniform and be honored as a veteran. It’s the day we stop to reflect with gratitude on the sacrifice of generations who made us more prosperous and free, and to think of the loved ones they left behind.
Remembering them – searing their stories and their contributions into our collective memory – that’s an awesome responsibility. It’s one that all of us share as citizens.
As Commander-in-Chief, I have no more solemn obligation than leading our men and women in uniform. Making sure they have what they need to succeed. Making sure we only send them into harm’s way when it’s absolutely necessary. And if they make the ultimate sacrifice – if they give their very lives – we have to do more than honor their memory.
We have to be there for their families. Over the years, Michelle and I have spent quiet moments with the families of the fallen – husbands and wives, mothers and fathers, sons and daughters. They’ve shared their pain – but also their pride in the sacrifices their loved ones made under our proud flag.
It’s up to the rest of us to live our lives in a way that’s worthy of these sacrifices.
The idea to set aside a Memorial Day each year didn’t come from our government – it came from ordinary citizens who acknowledged that while we can’t build monuments to every heroic act of every warrior we lost in battle, we can keep their memories alive by taking one day out of the year to decorate the places where they’re buried.
That’s something that so many of our fellow Americans are doing this weekend. Remembering. Remembering the soldiers, sailors, airmen, Marines, and Coast Guardsmen who died in our defense. Remembering those who remain missing. Remembering that they were our fellow citizens and churchgoers, classmates and children, and more often than not, the best of us.
So this Memorial weekend, I hope you’ll join me in acts of remembrance. Lay a flower or plant a flag at a fallen hero’s final resting place. Reach out to a Gold Star Family in your community, and listen to the story they have to tell. Send a care package to our troops overseas, volunteer to make a wounded warrior’s day a little easier, or hire a veteran who is ready and willing to serve at home just as they did abroad.
Or just pause, take a moment, and offer a silent word of prayer or a public word of thanks.
The debt we owe our fallen heroes is one we can never truly repay. But our responsibility to remember is something we can live up to every day of the year.
Thanks. May God watch over our fallen heroes and their families, and may God continue to bless the United States of America.
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President Barack Obama Weekly Address April 2, 2016 (Video/Transcript)
Barack Obama
Weekly Address
The White House
April 2, 2016
The White House
April 2, 2016
Hi, everybody. This week, I’m speaking to you from our Nuclear Security Summit. I welcomed more than 50 leaders from around the world to make sure we’re working together to meet one of the greatest threats to global security—terrorists getting their hands on a weapon of mass destruction, like a nuclear weapon.
Fortunately, because of our efforts so far, no terrorist group has yet succeeded in obtaining a nuclear device or producing a dirty bomb using radioactive materials. But we know that al Qaeda has tried. ISIL has already used chemical weapons in Syria and Iraq. And if they ever got hold of a nuclear weapon or nuclear material, we have no doubt they’d use it.
That’s why we’ve been leading a global effort to secure the world’s nuclear materials. And with summits like this, we’ve made important progress. Working with other nations, we have removed or secured enough nuclear material for more than 150 nuclear weapons—material that will now never fall into the hands of terrorists.
All of South America is now free of these deadly materials. Central Europe and Southeast Asia are on track to be free of them later this year. That means that as terrorists and criminal gangs look around for the deadly ingredients for a nuclear device, vast regions of the world are now off limits. This is a remarkable achievement. And at this summit, we pledged to keep up our efforts to prevent the world’s most deadly networks from obtaining the world’s most deadly weapons.
Our summit was also another opportunity to make sure the world remains united and focused on destroying ISIL. A majority of the nations who came here are part of our global coalition against ISIL. A number of our countries have been targeted by ISIL. Just about all our nations have seen citizens travel to join ISIL in Syria and Iraq.
In Syria and Iraq, ISIL continues to lose ground. Our coalition continues to take out its leaders, including those planning terrorist attacks against our countries. They’re losing their oil infrastructure and revenues. Their morale is suffering.
As ISIL is squeezed in Syria and Iraq, it’s lashing out elsewhere, as we’ve seen most recently— and tragically—from Turkey to Brussels. During our summit, we focused on ways to step up our efforts to disrupt terrorist attacks. It requires even more cooperation to prevent the flow of foreign terrorist fighters and sharing even more information and intelligence. That’s why I invited all the nations represented at this summit to join us in a broader discussion among our intelligence and security services on how we can improve information sharing to prevent terrorist attacks
This continues to be a difficult fight. But every day, our dedicated professionals—military, diplomatic, intelligence, counterterrorism, homeland security, law enforcement, nuclear experts—are working to protect us. Because of the progress we made this week, and over recent years, more of the world’s nuclear material is secure. It’s harder for terrorists to get it. And as Commander in Chief, I want you to know that we’re going to keep doing everything in our power to keep our nation safe and strong and free.
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Thursday
President Announcing Judge Merrick Garland as his Nominee to the Supreme Court (Video?Transcript)
Of the many powers and responsibilities that the Constitution vests in the presidency, few are more consequential than appointing a Supreme Court justice -- particularly one to succeed Justice Scalia, one of the most influential jurists of our time.
The men and women who sit on the Supreme Court are the final arbiters of American law. They safeguard our rights. They ensure that our system is one of laws and not men. They’re charged with the essential task of applying principles put to paper more than two centuries ago to some of the most challenging questions of our time.
So this is not a responsibility that I take lightly. It’s a decision that requires me to set aside short-term expediency and narrow politics, so as to maintain faith with our founders and, perhaps more importantly, with future generations. That’s why, over the past several weeks, I’ve done my best to set up a rigorous and comprehensive process. I’ve sought the advice of Republican and Democratic members of Congress. We’ve reached out to every member of the Senate Judiciary Committee, to constitutional scholars, to advocacy groups, to bar associations, representing an array of interests and opinions from all across the spectrum.
And today, after completing this exhaustive process, I’ve made my decision. I’ve selected a nominee who is widely recognized not only as one of America’s sharpest legal minds, but someone who brings to his work a spirit of decency, modesty, integrity, even-handedness, and excellence. These qualities, and his long commitment to public service, have earned him the respect and admiration of leaders from both sides of the aisle. He will ultimately bring that same character to bear on the Supreme Court, an institution in which he is uniquely prepared to serve immediately.
Today, I am nominating Chief Judge Merrick Brian Garland to join the Supreme Court. (Applause.)
Now, in law enforcement circles, and the in the legal community at large, Judge Garland needs no introduction. But I’d like to take a minute to introduce Merrick to the American people, whom he already so ably serves.
He was born and raised in the Land of Lincoln -- in my hometown of Chicago, in my home state of Illinois. His mother volunteered in the community; his father ran a small business out of their home. Inheriting that work ethic, Merrick became valedictorian of his public high school. He earned a scholarship to Harvard, where he graduated summa cum laude. And he put himself through Harvard Law School by working as a tutor, by stocking shoes in a shoe store, and, in what is always a painful moment for any young man, by selling his comic book collection. (Laughter.) It's tough. Been there. (Laughter.)
Merrick graduated magna cum laude from Harvard Law, and the early years of his legal career bear all the traditional marks of excellence. He clerked for two of President Eisenhower’s judicial appointees -- first for a legendary judge on the Second Circuit, Judge Henry Friendly, and then for Supreme Court Justice William Brennan. Following his clerkships, Merrick joined a highly regarded law firm, with a practice focused on litigation and pro bono representation of disadvantaged Americans. Within four years, he earned a partnership -- the dream of most lawyers. But in 1989, just months after that achievement, Merrick made a highly unusual career decision. He walked away from a comfortable and lucrative law practice to return to public service.
Merrick accepted a low-level job as a federal prosecutor in President George H.W. Bush’s administration. He took a 50-percent pay cut, traded in his elegant partner’s office for a windowless closet that smelled of stale cigarette smoke. This was a time when crime here in Washington had reached epidemic proportions, and he wanted to help. And he quickly made a name for himself, going after corrupt politicians and violent criminals.
His sterling record as a prosecutor led him to the Justice Department, where he oversaw some of the most significant prosecutions in the 1990s -- including overseeing every aspect of the federal response to the Oklahoma City bombing. In the aftermath of that act of terror, when 168 people, many of them small children, were murdered, Merrick had one evening to say goodbye to his own young daughters before he boarded a plane to Oklahoma City. And he would remain there for weeks. He worked side-by-side with first responders, rescue workers, local and federal law enforcement. He led the investigation and supervised the prosecution that brought Timothy McVeigh to justice.
But perhaps most important is the way he did it. Throughout the process, Merrick took pains to do everything by the book. When people offered to turn over evidence voluntarily, he refused, taking the harder route of obtaining the proper subpoenas instead, because Merrick would take no chances that someone who murdered innocent Americans might go free on a technicality.
Merrick also made a concerted effort to reach out to the victims and their families, updating them frequently on the case’s progress. Everywhere he went, he carried with him in his briefcase the program from the memorial service with each of the victims’ names inside –- a constant, searing reminder of why he had to succeed.
Judge Garland has often referred to his work on the Oklahoma City case as, and I quote, “the most important thing I have ever done in my life.” And through it all, he never lost touch with that community that he served.
It’s no surprise then, that soon after his work in Oklahoma City, Merrick was nominated to what’s often called the second highest court in the land -- the D.C. Circuit Court. During that process, during that confirmation process, he earned overwhelming bipartisan praise from senators and legal experts alike. Republican Senator Orrin Hatch, who was then chairman of the Senate Judiciary Committee, supported his nomination. Back then, he said, “In all honesty, I would like to see one person come to this floor and say one reason why Merrick Garland does not deserve this position.” He actually accused fellow Senate Republicans trying to obstruct Merrick’s confirmation of “playing politics with judges.” And he has since said that Judge Garland would be a “consensus nominee” for the Supreme Court who “would be very well supported by all sides,” and there would be “no question” Merrick would be confirmed with bipartisan support.
Ultimately, Merrick was confirmed to the D.C. Circuit, the second highest court in the land, with votes from a majority of Democrats and a majority of Republicans. Three years ago, he was elevated to Chief Judge. And in his 19 years on the D.C. Circuit, Judge Garland has brought his trademark diligence, compassion, and unwavering regard for the rule of law to his work.
On a circuit court known for strong-minded judges on both ends of the spectrum, Judge Garland has earned a track record of building consensus as a thoughtful, fair-minded judge who follows the law. He’s shown a rare ability to bring together odd couples, assemble unlikely coalitions, persuade colleagues with wide-ranging judicial philosophies to sign on to his opinions.
And this record on the bench speaks, I believe, to Judge Garland’s fundamental temperament -- his insistence that all views deserve a respectful hearing. His habit, to borrow a phrase from former Justice John Paul Stevens, “of understanding before disagreeing,” and then disagreeing without being disagreeable. It speaks to his ability to persuade, to respond to the concerns of others with sound arguments and airtight logic. As his former colleague on the D.C. Circuit, and our current Chief Justice of the Supreme Court, John Roberts, once said, “Any time Judge Garland disagrees, you know you’re in a difficult area.”
At the same time, Chief Judge Garland is more than just a brilliant legal mind. He’s someone who has a keen understanding that justice is about more than abstract legal theory; more than some footnote in a dusty casebook. His life experience –- his experience in places like Oklahoma City –- informs his view that the law is more than an intellectual exercise. He understands the way law affects the daily reality of people’s lives in a big, complicated democracy, and in rapidly-changing times. And throughout his jurisprudence runs a common thread -– a dedication to protecting the basic rights of every American; a conviction that in a democracy, powerful voices must not be allowed to drown out the voices of everyday Americans.
To find someone with such a long career of public service, marked by complex and sensitive issues; to find someone who just about everyone not only respects, but genuinely likes –- that is rare. And it speaks to who Merrick Garland is -- not just as a lawyer, but as a man.
People respect the way he treats others -- his genuine courtesy and respect for his colleagues and those who come before his court. They admire his civic-mindedness -- mentoring his clerks throughout their careers, urging them to use their legal training to serve their communities, setting his own example by tutoring a young student at a Northeast D.C. elementary school each year for the past 18 years. They’re moved by his deep devotion to his family -- Lynn, his wife of nearly 30 years, and their two daughters, Becky and Jessie. As a family, they indulge their love of hiking and skiing and canoeing, and their love of America by visiting our national parks.
People respect Merrick’s deep and abiding passion for protecting our most basic constitutional rights. It’s a passion, I’m told, that manifested itself at an early age. And one story is indicative of this, is notable. As valedictorian of his high school class, he had to deliver a commencement address. The other student speaker that day spoke first and unleashed a fiery critique of the Vietnam War. Fearing the controversy that might result, several parents decided to unplug the sound system, and the rest of the student’s speech was muffled.
And Merrick didn’t necessarily agree with the tone of his classmate’s remarks, nor his choice of topic for that day. But stirred by the sight of a fellow student’s voice being silenced, he tossed aside his prepared remarks and delivered instead, on the spot, a passionate, impromptu defense of our First Amendment rights.
It was the beginning of a lifelong career -- as a lawyer, and a prosecutor, and as a judge -- devoted to protecting the rights of others. And he has done that work with decency and humanity and common sense, and a common touch. And I’m proud that he’ll continue that work on our nation’s highest court.
I said I would take this process seriously -- and I did. I chose a serious man and an exemplary judge, Merrick Garland. Over my seven years as President, in all my conversations with senators from both parties in which I asked their views on qualified Supreme Court nominees -- this includes the previous two seats that I had to fill -- the one name that has come up repeatedly, from Republicans and Democrats alike, is Merrick Garland.
Now, I recognize that we have entered the political season -- or perhaps, these days it never ends -- a political season that is even noisier and more volatile than usual. I know that Republicans will point to Democrats who’ve made it hard for Republican Presidents to get their nominees confirmed. And they’re not wrong about that. There’s been politics involved in nominations in the past. Although it should be pointed out that, in each of those instances, Democrats ultimately confirmed a nominee put forward by a Republican President.
I also know that because of Justice Scalia’s outsized role on the Court and in American law, and the fact that Americans are closely divided on a number of issues before the Court, it is tempting to make this confirmation process simply an extension of our divided politics -- the squabbling that’s going on in the news every day. But to go down that path would be wrong. It would be a betrayal of our best traditions, and a betrayal of the vision of our founding documents.
At a time when our politics are so polarized, at a time when norms and customs of political rhetoric and courtesy and comity are so often treated like they’re disposable -- this is precisely the time when we should play it straight, and treat the process of appointing a Supreme Court justice with the seriousness and care it deserves. Because our Supreme Court really is unique. It’s supposed to be above politics. It has to be. And it should stay that way.
To suggest that someone as qualified and respected as Merrick Garland doesn’t even deserve a hearing, let alone an up or down vote, to join an institution as important as our Supreme Court, when two-thirds of Americans believe otherwise -- that would be unprecedented.
To suggest that someone who has served his country with honor and dignity, with a distinguished track record of delivering justice for the American people, might be treated, as one Republican leader stated, as a political “piñata” -- that can’t be right.
Tomorrow, Judge Garland will travel to the Hill to begin meeting with senators, one-on-one. I simply ask Republicans in the Senate to give him a fair hearing, and then an up or down vote. If you don’t, then it will not only be an abdication of the Senate’s constitutional duty, it will indicate a process for nominating and confirming judges that is beyond repair. It will mean everything is subject to the most partisan of politics -- everything. It will provoke an endless cycle of more tit-for-tat, and make it increasingly impossible for any President, Democrat or Republican, to carry out their constitutional function. The reputation of the Supreme Court will inevitably suffer. Faith in our justice system will inevitably suffer. Our democracy will ultimately suffer, as well.
I have fulfilled my constitutional duty. Now it’s time for the Senate to do theirs. Presidents do not stop working in the final year of their term. Neither should a senator.
I know that tomorrow the Senate will take a break and leave town on recess for two weeks. My earnest hope is that senators take that time to reflect on the importance of this process to our democracy -- not what’s expedient, not what’s happening at the moment, what does this mean for our institutions, for our common life -- the stakes, the consequences, the seriousness of the job we all swore an oath to do.
And when they return, I hope that they’ll act in a bipartisan fashion. I hope they’re fair. That’s all. I hope they are fair. As they did when they confirmed Merrick Garland to the D.C. Circuit, I ask that they confirm Merrick Garland now to the Supreme Court, so that he can take his seat in time to fully participate in its work for the American people this fall. He is the right man for the job. He deserves to be confirmed. I could not be prouder of the work that he has already done on behalf of the American people. He deserves our thanks and he deserves a fair hearing.
And with that, I’d like to invite Judge Garland to say a few words. (Applause.)
JUDGE GARLAND: Thank you, Mr. President. This is the greatest honor of my life -- other than Lynn agreeing to marry me 28 years ago. It’s also the greatest gift I’ve ever received except -- and there’s another caveat -- the birth of our daughters, Jessie and Becky.
As my parents taught me by both words and deeds, a life of public service is as much a gift to the person who serves as it is to those he is serving. And for me, there could be no higher public service than serving as a member of the United States Supreme Court.
My family deserves much of the credit for the path that led me here. My grandparents left the Pale of Settlement at the border of Western Russian and Eastern Europe in the early 1900s, fleeing anti-Semitism, and hoping to make a better life for their children in America. They settled in the Midwest, eventually making their way to Chicago.
There, my father, who ran the smallest of small businesses from a room in our basement, took me with him as he made the rounds to his customers, always impressing upon me the importance of hard work and fair dealing. There, my mother headed the local PTA and school board and directed a volunteer services agency, all the while instilling in my sister and me the understanding that service to the community is a responsibility above all others. Even now, my sisters honor that example by serving the children of their communities.
I know that my mother is watching this on television and crying her eyes out. (Laughter.) So are my sisters, who have supported me in every step I have ever taken. I only wish that my father were here to see this today. I also wish that we hadn’t taught my older daughter to be so adventurous that she would be hiking in the mountains, out of cell service range -- (laughter) -- when the President called. (Laughter.)
It was the sense of responsibility to serve a community, instilled by my parents, that led me to leave my law firm to become a line prosecutor in 1989. There, one of my first assignments was to assist in the prosecution of a violent gang that had come down to the District from New York, took over a public housing project and terrorized the residents. The hardest job we faced was persuading mothers and grandmothers that if they testified, we would be able to keep them safe and convict the gang members. We succeeded only by convincing witnesses and victims that they could trust that the rule of law would prevail.
Years later, when I went to Oklahoma City to investigate the bombing of the Federal Building, I saw up close the devastation that can happen when someone abandons the justice system as a way of resolving grievances, and instead takes matters into his own hands. Once again, I saw the importance of assuring victims and families that the justice system could work. We promised that we would find the perpetrators, that we would bring them to justice, and that we would do it in a way that honored the Constitution. The people of Oklahoma City gave us their trust, and we did everything we could to live up to it.
Trust that justice will be done in our courts without prejudice or partisanship is what, in a large part, distinguishes this country from others. People must be confident that a judge’s decisions are determined by the law, and only the law. For a judge to be worthy of such trust, he or she must be faithful to the Constitution and to the statutes passed by the Congress. He or she must put aside his personal views or preferences, and follow the law -- not make it.
Fidelity to the Constitution and the law has been the cornerstone of my professional life, and it’s the hallmark of the kind of judge I have tried to be for the past 18 years. If the Senate sees fit to confirm me to the position for which I have been nominated today, I promise to continue on that course.
Mr. President, it’s a great privilege to be nominated by a fellow Chicagoan. I am grateful beyond words for the honor you have bestowed upon me. (Applause.)
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Wednesday
Trump Leads GOP Charge Embracing Torture: "I'd Bring Back a Hell of a Lot Worse Than Waterboarding
AMY GOODMAN: In the final debate before Tuesday’s primary in New Hampshire, Republican presidential contenders battled it out Saturday night at Saint Anselm College in Manchester, New Hampshire. Taking part in the debate were New Jersey Governor Chris Christie, Dr. Ben Carson, Senator Ted Cruz of Texas, Donald Trump, Florida Senator Marco Rubio, former Florida Governor Jeb Bush and Ohio Governor John Kasich. ABC News excluded former Hewlett-Packard CEO Carly Fiorina from the debate despite protests from many Republicans.
Much of the post-debate coverage has focused on Marco Rubio for repeatedly reciting the same talking points about President Obama, even after he was called out by Governor Christie.
SEN. MARCO RUBIO: And let’s dispel once and for all with this fiction that Barack Obama doesn’t know what he’s doing. He knows exactly what he’s doing. ... But I would add this: Let’s dispel with this fiction that Barack Obama doesn’t know what he’s doing. He knows exactly what he’s doing. ... Here’s the bottom line: This notion that Barack Obama doesn’t know what he’s doing is just not true.
GOV. CHRIS CHRISTIE: There it is.
SEN. MARCO RUBIO: He knows exactly what he’s doing.
GOV. CHRIS CHRISTIE: There it is, the memorized 25-second speech.
SEN. MARCO RUBIO: He’s—well, that’s the—
GOV. CHRIS CHRISTIE: There it is, everybody.
SEN. MARCO RUBIO: That’s the reason why this campaign is so important, because I think this notion—I think this is an important point. We have to understand what we’re going through here. We are not facing a president that doesn’t know what he’s doing. He knows what he is doing. ... I think anyone who believes that Barack Obama isn’t doing what he’s doing on purpose doesn’t understand what we’re dealing with here. OK? This is a president—this is a president who’s trying to change this country.AMY GOODMAN: While headlines about "Robot Rubio" and "MarcoBot" dominated much of the discussion after the debate, a number of other issues did come up during Saturday’s debate, including torture, North Korea, police brutality and eminent domain. We’re going to look at all four of these issues and how the candidates responded on today’s show. We’ll begin with the issue of torture, raised by debate moderator David Muir of ABC News.
DAVID MUIR: We’re going to stay on ISIS here and the war on terror, because, as you know, there’s been a debate in this country about how to deal with the enemy and about enhanced interrogation techniques ever since 9/11. So, Senator Cruz, you have said, quote, "Torture is wrong, unambiguously, period. Civilized nations do not engage in torture." Some of the other candidates say they don’t think waterboarding is torture. Mr. Trump has said, "I would bring it back." Senator Cruz, is waterboarding torture?
SEN. TED CRUZ: Well, under the definition of torture, no, it’s not. Under the law, torture is excruciating pain that is equivalent to losing—losing organs and systems. So, under the definition of torture, it is not. It is enhanced interrogation, it is vigorous interrogation, but it does not meet the generally recognized definition of torture.
DAVID MUIR: If elected president, would you bring it back?
SEN. TED CRUZ: I would not bring it back in any sort of widespread use. And indeed, I’d join with Senator McCain in legislation that would prohibit line officers from employing it, because I think bad things happen when enhanced interrogation is employed at lower levels. But when it comes to keeping this country safe, the commander-in-chief has inherent constitutional authority to keep this country safe. And so, if it were necessary to, say, prevent a city from facing an imminent terrorist attack, you can rest assured that, as commander-in-chief, I would use whatever enhanced interrogation methods we could to keep this country safe.
DAVID MUIR: Senator Cruz, thank you. Mr. Trump, you said not only does it work, but that you’d bring it back.
DONALD TRUMP: Well, I’ll tell you what. In the Middle East, we have people chopping the heads off Christians. We have people chopping the heads off many other people. We have things that we have never seen before—as a group, we have never seen before what’s happening right now. The medieval times—I mean, we studied medieval times. Not since medieval times have people seen what’s going on. I would bring back waterboarding, and I’d bring back a hell of a lot worse than waterboarding.
DAVID MUIR: Mr. Trump, thank you. Governor Bush, you have said that you won’t rule waterboarding out. Congress has passed laws banning the use of waterboarding by the military and the CIA, as you know. Would you want Congress to change that, if you’re elected president?
JEB BUSH: No. No, I wouldn’t. No, I wouldn’t. And it was used sparingly. Congress has changed the laws, and I think where we stand is the appropriate place. But what we need to do is to make sure that we expand our intelligence capabilities. The idea that we’re going to solve this fight with Predator drones, killing people, somehow is a—is more acceptable than capturing them, securing the information—this is why closing Guantánamo is a complete disaster. What we need to do is make sure that we are kept safe by having intelligence capabilities, both human and technological intelligence capabilities, far superior than what we have today. That’s how you get a more safe place, is by making sure that we’re fully engaged. And right now this administration doesn’t do that.
DAVID MUIR: Governor Bush, thank you. Senator Rubio, I do want to ask you, you have said that you do not want to telegraph to the enemy what you would do as commander-in-chief, but for the American people watching tonight who want to know where the next president will stand, do you believe waterboarding is torture?
SEN. MARCO RUBIO: Well, when people talk about interrogating terrorists, they’re acting like this is some sort of law enforcement function. Law enforcement is about gathering evidence to take someone to trial and convict them. Antiterrorism is about finding out information to prevent a future attack. So the same tactics do not apply. And it is true: We should not be discussing wide—in a widespread way, the exact tactics that we’re going to use, because that allows terrorists and others to practice how to evade us. But here’s the bigger part—problem with all this: We’re not interrogating anybody right now. Guantánamo is being emptied by this president. We should be putting people into Guantánamo, not emptying it out. And we shouldn’t be releasing these killers, who are rejoining the battlefield against the United States.AMY GOODMAN: Senator Marco Rubio at Saturday’s Republican debate in New Hampshire, the eighth debate, the final one before the New Hampshire primary on Tuesday.
Joining us now is Pardiss Kebriaei, senior staff attorney with Center for Constitutional Rights representing current and former Guantánamo prisoners.
Welcome to Democracy Now!
PARDISS KEBRIAEI: Thanks, Amy.
AMY GOODMAN: So, quite a discussion here—
PARDISS KEBRIAEI: Yeah.
AMY GOODMAN: —both around the issue of waterboarding and of expanding Guantánamo.
PARDISS KEBRIAEI: Right. You know, there’s a lot to say, hard to know where to begin. To this—to just the basic point about the fact that we are still debating whether things like waterboarding constitute torture and you have candidates able to say, "No, waterboarding is not torture," and to sort of redefine those terms, I mean, that is not—redefine the term of "torture," that’s something that’s not unique to the issue of torture, it’s not unique to a political party. You know, we’ve heard many times administrations and officials say, "We don’t torture, we don’t engage in indefinite detention, we don’t do targeted assassinations"—all of this by sort of unilaterally redefining and gutting terms of their plain meaning under international law. So, it’s not new or unique.
As to whether things like waterboarding constitute torture, clearly, under widely accepted understandings and standards and definitions under international law, it is torture. The U.N. CAT committee, Committee Against Torture, has said it. The—
AMY GOODMAN: Senator Cruz said it wasn’t.
PARDISS KEBRIAEI: Senator Cruz said it wasn’t. The International Committee of the Red Cross, which is an authority on the laws of war and international humanitarian law, has said specifically waterboarding is torture. U.S. courts have said it. U.S.—the United States has prosecuted U.S. and foreign soldiers for engaging in waterboarding. There have been prosecutions domestically for waterboarding domestically. So the idea that this is arguable is just not supported. It is clearly illegal.
I think the troubling thing is the fact that it has been made arguable or is able to be debated, still has in part to do with the fact that there has been zero accountability for torture under the Bush administration. And that’s been something that has been—you know that falls on the Obama administration, I think.
AMY GOODMAN: What could be Obama administration do?
PARDISS KEBRIAEI: Well, there have been no—there have been calls for a special prosecutor to investigate clear allegations of crimes committed at least by the CIA, as evidenced by the Senate report on the CIA torture program. I mean, there’s volumes of documented information about at least one piece of torture under the Bush administration. There should at least be an investigation domestically. Politically, you know, that seems very difficult, if not impossible. Those investigations have not been pursued.
We at CCR have—as a result, because of the lack of complete accountability domestically, we’ve turned to foreign courts and have supported or been involved or brought a request for prosecution or accountability in the courts of Spain. We’ve brought—we’re supporting an action in France. There have been actions in Canada or before the CAT committee. So, I mean, we’re trying, at least internationally through universal jurisdiction in foreign courts, to bring to bear some kind of accounting for what’s happened.
But I think the fact that there hasn’t been anything domestically, and the message is sort of "we need to look forward and not backward" by the Obama administration, is part of what has allowed this sort of gray zone and for things like torture and waterboarding, which is sort of the—one the most overt forms of it, to remain arguable and debatable, and cheered on national television—by Republican donors, but, you know, nonetheless.
AMY GOODMAN: The issue of expanding Guantánamo and the mutual outrage of the candidates that it was not being—not just closed, but expanded?
PARDISS KEBRIAEI: Yeah.
AMY GOODMAN: Talk about the prisoners that you represent inside Guantánamo.
PARDISS KEBRIAEI: Well, just one—I mean, there’s a lot to unpack there. You know, when Rubio says that we need to be putting more people back into Guantánamo and the basic problem is we’re not—we’re not interrogating anyone anymore, it is false to suggest that Guantánamo was the only place where the United States or is the only place where the United States is interrogating terrorist suspects. In recent years, for example, there have been operations reported in the media, that we know about, where the United States has snatched suspects off the streets in suburban areas in their own homes. One example is of Abu Anas al-Libi in 2013, snatched in front of his home in a suburb of Tripoli by U.S. military forces, held and interrogated aboard a U.S. Navy ship without counsel, effectively incommunicado, and then appears in federal court in the United States to face charges and trial. And that entire period of extrajudicial holding, treatment, interrogation is effectively erased once that happens, because of the challenges of—because of the difficulty of challenging that treatment in federal court. But that is one sort of hybrid way the U.S. is relying on wartime authorities—problematic ones—to sort of pick people up far from recognized war zones, hold and interrogate them without charge, without counsel, you know, effectively secretly, and then—and then bring prosecution. So we know that those things are happening. And so the suggestion that we’re not interrogating anymore is just false.
As to, you know, expanding Guantánamo and, you know, what is happening with the prison now, there is a certain momentum in terms of transfers of people. We need to be very clear about who is being transferred. Those are people who U.S. intelligence and defense officials themselves have said do not need to be at Guantánamo.
AMY GOODMAN: We’re talking not only Obama administration officials—
PARDISS KEBRIAEI: Bush administration.
AMY GOODMAN: —but Bush administration officials.
PARDISS KEBRIAEI: We have said this 'til we're red in the face. I mean, it’s just—it’s just a complete distortion to suggest.
AMY GOODMAN: Many of these prisoners held for well over 10 years, cleared for years to be released.
PARDISS KEBRIAEI: The first group of people under the Obama administration were approved for transfer in 2009 and '10. Many of them are sitting in Guantánamo today, including some of our clients—Tariq Ba Odah, nine-year hunger striker, still at Guantánamo; Mohammed al-Hamiri, cleared for release in 2009, sitting in Guantánamo, perhaps even watching this broadcast now. There's another group of men who have been cleared under more recent administrative reviews, under what’s known as the Periodic Review Board. Those are reviews that were set up and meant to start in 2011, didn’t—nothing happened until 2013. That’s entirely on the Obama administration. That’s something entirely within executive control. There was an executive order that said these reviews need to start in 2011, they need to be done by 2012. Nothing happened until—
AMY GOODMAN: So it’s four years later.
PARDISS KEBRIAEI: Four years later. Nothing happened after—until after a mass hunger strike at the prison in 2013. I mean, Guantánamo had really sort of fallen off the administration’s agenda as a priority until after the hunger strike. Slowly, since then, the reviews have started. But there are still dozens of people who are waiting for their first review. One of my clients—two of my clients, Zahir Hamdoun, just went through his review, was approved for transfer; another, Ghaleb al-Bihani—both Yemenis—approved for transfer last year, still waiting for transfer. So, those men, cleared men by the administration itself, remain sitting in Guantánamo.
There is another problem in terms of the way people are being transferred from Guantánamo. That’s an issue that’s gotten far less attention. But in terms of what they face, particularly for those people not going home, which means a lot of the Yemenis, and they’re not going home not because they don’t want to go home or they can’t go home, but because it is U.S. policy not to send them back to Yemen because of conflicts that have nothing to do with some of their individual circumstances or their families or their facts, so, as a result, is needing to find third countries for them. You know, it’s just the experience of people who have been held for 14 years without charge, arbitrarily, tortured, getting on another—getting on a plane and then landing in an entirely alien environment, without family, without community, with very little support. And—
AMY GOODMAN: Are the Democrats different in their approach to Guantánamo? I mean, Hillary Clinton was secretary of state during a number of these years.
PARDISS KEBRIAEI: No, I mean, these transfers—dozens of them, over 70, 80, 90 of them—have happened under the Obama administration. And certainly, transfers need to keep happening. Bottom line, the men in Guantánamo need to be out. But how they are being transferred, the support they have, what their experience on re-entry is like, that’s important to pay attention to, as well. But separate from these issues, I think—
AMY GOODMAN: We have 30 seconds.
PARDISS KEBRIAEI: —we need to be clear about: The Obama administration’s own plan for closing Guantánamo envisions maintaining the policy of indefinite detention. So part of the danger of that is that it allows for things. It allows for the policy and legal justifications to remain open, and would allow for a place, whether in Cuba or in a U.S. prison, for future administrations to send additional detainees to. So that’s part of the danger of the administration’s own close—so-called close Guantánamo plan.
AMY GOODMAN: Well, I want to thank you, Pardiss Kebriaei, senior staff attorney with the Center for Constitutional Rights representing current and former Guantánamo prisoners.
We’re going to go on with this debate on the issue of eminent domain, preemptive strikes against North Korea, and about the issue of police brutality. Then we’ll look at the Super Bowl, the protests, the concussions, and we’ll look at Beyoncé, the song she released and the one she performed at halftime. Stay with us.
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President Barack Obama Weekly Address January 1, 2016 (Video/Transcript)
President Barack Obama
Weekly Address
The White House
January 1, 2016
Happy New Year, everybody. I am fired up for the year that stretches
out before us. That’s because of what we’ve accomplished together over
the past seven.Weekly Address
The White House
January 1, 2016
Seven years ago, our businesses were losing 800,000 jobs a month. They’ve now created jobs for 69 straight months, driving the unemployment rate from a high of 10% down to 5%.
Seven years ago, too many Americans went without health insurance. We’ve now covered more than 17 million people, dropping the rate of the uninsured below 10% for the very first time.
Seven years ago, we were addicted to foreign oil. Now our oil imports have plummeted, our clean energy industry is booming, and America is a global leader in the fight against climate change.
Seven years ago, there were only two states in America with marriage equality. And now there are 50.
All of this progress is because of you. And we’ve got so much more to do. So my New Year’s resolution is to move forward on our unfinished business as much as I can. And I’ll be more frequently asking for your help. That’s what this American project is all about.
That's especially true for one piece of unfinished business, that’s our epidemic of gun violence.
Last month, we remembered the third anniversary of Newtown. This Friday, I’ll be thinking about my friend Gabby Giffords, five years into her recovery from the shooting in Tucson. And all across America, survivors of gun violence and those who lost a child, a parent, a spouse to gun violence are forced to mark such awful anniversaries every single day.
And yet Congress still hasn’t done anything to prevent what happened to them from happening to other families. Three years ago, a bipartisan, commonsense bill would have required background checks for virtually everyone who buys a gun. Keep in mind, this policy was supported by some 90% of the American people. It was supported by a majority of NRA households. But the gun lobby mobilized against it. And the Senate blocked it.
Since then, tens of thousands of our fellow Americans have been mowed down by gun violence. Tens of thousands. Each time, we’re told that commonsense reforms like background checks might not have stopped the last massacre, or the one before that, so we shouldn’t do anything.
We know that we can’t stop every act of violence. But what if we tried to stop even one? What if Congress did something – anything – to protect our kids from gun violence?
A few months ago, I directed my team at the White House to look into any new actions I can take to help reduce gun violence. And on Monday, I’ll meet with our Attorney General, Loretta Lynch, to discuss our options. Because I get too many letters from parents, and teachers, and kids, to sit around and do nothing. I get letters from responsible gun owners who grieve with us every time these tragedies happen; who share my belief that the Second Amendment guarantees a right to bear arms; and who share my belief we can protect that right while keeping an irresponsible, dangerous few from inflicting harm on a massive scale.
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