Thursday, August 25, 2022

CORPUS DELICTI***

Taliban say they've not found

body of al Qaeda leader

FILE PHOTO: A photo of Al Qaeda leader Ayman al-Zawahiri is seen in this
 still image taken from a video

KABUL (Reuters) - The Taliban have not found the body of Ayman al-Zawahiri and are continuing investigations, group spokesperson Zabihullah Mujahid said on Thursday, after the United States said they killed the al Qaeda leader in an airstrike in Kabul last month.

The United States killed Zawahiri with a missile fired from a drone while he stood on a balcony at his hideout in July, U.S. officials said, in the biggest blow to al Qaeda since U.S. Navy SEALS shot dead Osama bin Laden more than a decade ago.

The Many Lives of Ayman al-Zawahiri

 AUGUST 25, 2022

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Ayman al-Zawahiri is dead – or so we are told.  Al-Qaida’s chief and successor to the slain Osama bin Laden, he was deemed the chief ideologue and mastermind behind the audacious September 11, 2001 attacks on the United States.  On July 31, he was supposedly killed in a drone strike in Afghanistan’s capital, Kabul, while standing on his balcony.

Terrorism and security pundits, whose views are best considered from afar with stern scrutiny, are predictably speculating that the killing will have some effect on al-Qaida but are incapable of showing how.  Vanda Felbab-Brown at Brookings is convinced that “his death with have a negative strategic and demoralizing impact on al-Qaida” though gives no inkling of how this might be so.  Even by her own admission, Zawahiri was not “involved in daily tactical al-Qaida planning”.

The lack of US counter-terrorism capabilities, not to mention officially stationed personnel in Afghanistan, is no problem for Felbab-Brown.  She admires the US forces for still getting the job done, if it can be put as crudely as that. This killing was an “impressive show of the effectiveness and persistence of US counterterrorism efforts”.  Scorn is also reserved for the Taliban, who seemed to be playing host and continuing old habits of supping from the same bowl.

President Joe Biden also took pride in noting that such killings could be executed at a distance, and without the need for an ongoing US garrison.  “When I ended our military mission in Afghanistan almost a year ago, I made the decision that after 20 years of war, the United States no longer needed thousands of boots on the ground in Afghanistan to protect America from terrorists who seek to do us harm.”

In November 2020, another commentator from the Brookings stable, Daniel Byman, wrote something almost identical in flavour to that of Felbab-Brown.  Zawahiri had, on that occasion, had another one of his death flourishes, reportedlyexpiring in Afghanistan from “natural causes”.

Byman was keen to speculate.  “If Zawahri is dead, where will al-Qaida go next and what kind of movement will Zawahri’s successor inherit?”  With classroom authority, Byman opined that, “Leaders matter tremendously for terrorist groups, especially jihadi ones, which often rise and fall based on the fortunes of their emir.”

As things transpired, the leader in question was very much alive and kicking and reports of his death had been embarrassingly exaggerated.  He appeared in a video message celebrating the withdrawal of US forces from Afghanistan, released on September 11, 2021.

The al-Qaida leader certainly has form.  In August 2008, Zawahiri’s fate was of such interest to CBS News as to prompt a bold pronouncement.  He was said to be in “severe pain” and in need of urgent treatment for injuries sustained in a strike.  Lara Logan, the CBS News chief foreign affairs correspondent, had supposedly secured a letter written by local Taliban leader Baitullah Mehsud making that point.  The injuries were said to be so critical that the leader was “possibly dead”.  Logan acknowledged that there had been “false death rumours” floating around previously about the al-Qaida figure, but no denials had been issued from Pakistan, the US or al-Qaida websites.  Not exactly formidably deductive.

Zawahiri has encountered death yet again, this time at the end of a drone strike on a safe house in Kabul.  But things were far from clear.  Former head of the National Directorate of Security in Afghanistan, Rahmatullah Nabil, claimed it was “an American strike on IS-K” (Islamic State-Khorasan Province) that took place on July 31.  Not so, according to Amrullah Saleh, former Afghan vice-president, who attributed responsibility to the Pakistani Airforce.

The Taliban followed up, with spokesman Zabihullah Mujahid confirming that the strike had, in fact, been the work of a US drone.  “Such actions are a repetition of the failed experiences of the past 20 years and are against the interests of the US, Afghanistan and the region,” Mujahid added.

US President Joe Biden duly issued his video-briefing corroborating the attack.  Not that this necessarily clarified matters regarding Zawahiri.  John Kirby, National Security Council coordinator for strategic communications, admittedthat no DNA evidence had been obtained.  Cockily, he asserted that, “based on multiple sources and methods that we’ve gathered information from, we don’t need it.”

The pattern of killings and assassinations gloried in, only to be revised or disproved later, is very much part of the counterterrorist manual.  US officials have indulged in this before, notably in the context of Osama bin Laden.  At a certain point in time, it became irrelevant whether he lived or otherwise.  The figure had died on so many occasions as to become a simulacrum, existing in an absurdist drama known as terrorism studies and “counter-terrorist operations”.  At best, the obsession with capturing and killing him provided the personal touch, an individual whose targeting gave reassurance that wrongs could somehow be righted by disposing of him in extrajudicial fashion.

Bin Laden’s slaying by the Navy Seals in May 2011 had a cinematic element and, in a rather fitting way, reconciled his dead-yet-not-dead existence to celluloid.   The White House Situation Room showed President Barack Obama and his officials glued to the screen as the events in Abbottabad, Pakistan unfolded.  Ghoulish reality television unfolded before an audience grimly transfixed, horrified and entertained.

Like his predecessor felled by US bullets, Zawahiri’s demise hardly changes the dynamic of the terrorist franchise he led.  Killing such a man is not quite the equivalent of doing away with the manager of a banking branch, but the principle has a similarity to it.  Such entities will continue to thrive, fed by the very forces that often claim to suppress them.  Adherents will always be found; the hangman will never be disappointed.

Binoy Kampmark was a Commonwealth Scholar at Selwyn College, Cambridge. He lectures at RMIT University, Melbourne. Email: bkampmark@gmail.com


The Assassination of Ayman al-Zawahri


 AUGUST 24, 2022

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While U.S. officials and their acolytes in the mainstream press have described the U.S. national-security establishment’s recent assassination of Ayman al-Zawahri as a great victory for President Biden and the U.S. “global war on terror,” it is important to keep in mind that the assassination was just plain murder on the part of America’s federal killing machine.

Federal officials and their mainstream press have justified al-Zawahri’s killing on two grounds: (1) by claiming that al-Zawahri participated in the 9/11 attacks and (2) by claiming that the killing was simply part of their “global war on terror.” 

Both justifications, however, are nothing more than rationalizations for a state-sponsored murder on the part of the U.S. national-security establishment.

Let’s keep in mind something important: terrorism is not an act of war. It is a federal criminal offense. That includes the 9/11 attacks. As acts of terrorism, the 9/11 attacks were federal criminal offenses. 

Consider all the federal prosecutions for terrorism that have taken place in U.S. district courts in New York, Virginia, Washington, D.C., and elsewhere for many years. There is a simple reason for those prosecutions: Terrorism is a federal criminal offense. If it were an act of war, there never would have been those criminal prosecutions. Instead, there would have simply been prisoner-of-war camps, like in regular wars. In regular wars, no soldier is criminally prosecuted for murder for killing an enemy soldier. That’s because in war, soldiers are legally entitled to kill the enemy.

In 1993, terrorists set off a bomb in the World Trade Center. The bombing didn’t bring down the towers but it did kill and injure multitudes of people. It was no different in principle from the later attacks on 9/11. When Ramzi Yousef, one of the people who committed the 1993 attack, was later taken into custody, he was not placed in a prisoner-of war-camp. Instead, he was prosecuted in federal district court. Again, that’s because terrorism is a federal criminal offense, not an act of war.

Because the magnitude of the death and damage was so much greater with the 9/11 attacks, the Pentagon and the CIA succeeded in perverting and warping America’s founding judicial system. After those attacks, they established a torture and prison camp in Cuba. Why Cuba? Their aim was to establish a Constitution-free zone where they could bring any suspected terrorist in the world and do whatever they wanted to him, without any judicial interference whatsoever. That included such things as torture, indefinite detention, and extra-judicial execution. 

The Supreme Court declared that it had jurisdiction over the Cuba center but then, in an act of extreme passivity, permitted the Pentagon and the CIA to establish a dual judicial system, one that would operate alongside the federal judicial system. The Pentagon and the CIA would have the omnipotent authority to decide whether to send terrorism suspects through the federal system or through their kangaroo military-tribunal system. 

The Gitmo system has always been flagrantly unconstitutional. But the federal judiciary has always been deferential to the Pentagon and the CIA. That’s why there are still prisoners at Gitmo who have been incarcerated and tortured for decades without even the semblance of a trial, in flagrant violation of the right to a speedy trial guaranteed by the Bill of Rights and the right not to be subjected to cruel and unusual punishments.

After the 9/11 attacks, the national-security establishment also claimed that it had the authority to assassinate anyone it considered to be a terrorist. As I document in my new book An Encounter with Evil: The Abraham Zapruder Story, this power of assassination came into existence long before the 9/11 attacks, but by and large, it was kept under wraps and not publicized widely by the CIA and the Pentagon.

Not so after 9/11, however. At that point, assassination became a well-established, widely publicized power of the CIA and the Pentagon. From that point on, they didn’t have to bring suspected terrorists to justice, either in the federal court system or the tribunal system at Gitmo. They could just kill suspected terrorists on sight. That included American citizens.

There was always one great big legal problem, however, with their program of state-sponsored assassination: The Constitution, which not only does not delegate a power of assassination to federal officials but also, through the Fifth Amendment, expressly prohibits the federal taking of life without due process of law — i.e., without formal notice and a trial.

The Constitution, however, proved to be no obstacle to state-sponsored assassinations simply because the Supreme Court and the federal judiciary played their standard deferential and passive role by upholding this omnipotent, totalitarian, dark-side power. 

It is worth mentioning that there is no indication that al-Zawahri was participating in any anti-American terrorist operation at the time of his assassination. His killing appears to be nothing more than but an extrajudicial act of deadly vengeance in retaliation for the 9/11 attacks more than 20 years ago. It’s also worth mentioning that al-Zawahri was never convicted of participating in the 9/11 attacks. Indeed, as U.S. officials have slowly and reluctantly released their highly secret stash of evidence regarding 9/11 over the years, the great weight and preponderance of that evidence seems to point to the murderous regime of Saudi Arabia as the orchestrator of the 9/11 attacks. Of course, the Pentagon and the CIA would have every incentive to protect the murderous Saudi regime given that it provides much of the oil that funds their massive worldwide military  machine.

Our American ancestors brought into existence the greatest judicial system in history. It was a system that admittedly permitted some guilty people to go free, but with the aim of ensuring that innocent people were never punished, killed, tortured, or abused. That system worked well for some 150 years. Unfortunately, the Pentagon and the CIA have destroyed it, as we have most recently seen with their extrajudicial murder of accused terrorist Ayman al-Zawahri.

This first appeared on Jacob Hornberger’s Explore Freedom blog.

Jacob G. Hornberger is founder and president of The Future of Freedom Foundation.


Pinterest faces investigation by California civil rights agency


25 August 2022 - 
BY SARAH FRIER AND KURT WAGNER

An agency attorney on Tuesday emailed several former employees, including Ifeoma Ozoma, who went public in 2020 with allegations of underpayment and racial discrimination.
Image: Bloomberg

Pinterest Inc. is facing an investigation by the California Civil Rights Department, the company confirmed, after a number of employees brought forward discrimination claims in recent years.

An agency attorney on Tuesday emailed several former employees, including Ifeoma Ozoma, who went public in 2020 with allegations of underpayment and racial discrimination. “CCRD is conducting an investigation into Pinterest Inc. and you have been identified as a potential witness,” the email says, according to a copy viewed by Bloomberg.

Pinterest confirmed the inquiry, which was earlier reported by Protocol.

“The California Civil Rights Department (CCRD) is conducting investigations of a number of companies, and Pinterest is one of them,” the company said in a statement Wednesday. “Our discussions with the CCRD are ongoing and we remain committed to reviewing and evolving our people practices to best support our employees.”

In late 2020, Pinterest paid $20 million to settle a gender-discrimination case brought by former COO Francoise Brougher. She alleged she was paid less than her male peers, excluded from the company’s initial public offering process and eventually fired for speaking out about discrimination.

She came forward after the public statements by two Black women, Ozoma and Aerica Shimizu Banks, who said they were underpaid and that the company’s human resources department had dismissed their claims of discrimination. Pinterest has previously said it investigated those cases and found no wrongdoing.

The company added that it has been investing in policies to improve representation in the technology industry, and at Pinterest.

The CCRD, formerly known as the Department of Fair Employement and Housing, had no comment.
Vietnam War photographer Tim Page dies in Australia at 78

“One of his famous lines was, 'the only good war photograph is an anti-war photograph,'” 

Legendary Vietnam War photographer, writer and counter-culture documenter Tim Page has died Wednesday at his Australian home

ByROD McGUIRK 
Associated Press
August 25, 2022, 


CANBERRA, Australia -- Legendary Vietnam War photographer, writer and counter-culture documenter Tim Page died Wednesday at his Australian home. He was 78 years old.

The British-born, self-taught photographer died of liver cancer with friends at his bedside at his rural home at Fernmount in New South Wales state, friends posted on social media.

Ben Bohane, an Australian friend and fellow photojournalist, described Page as one of the world’s great war photographers as well as a “real humanist.”

“He always said that it was more important to be a decent human being than a great photographer. So his humanism, through his photojournalism, really shone through,” Bohane told Australian Broadcasting Corp. on Thursday.

“One of his famous lines was, 'the only good war photograph is an anti-war photograph,'” Bohane added.

Page was wounded four times as a war reporter covering conflicts in Vietnam, Laos and Cambodia during the 1960s and ’70s.

He stood out for his flamboyance and extravagant personality as well as his talent and commitment as a photographer. He inspired the drug-addled photojournalist played by Dennis Hopper in the Francis Coppola-directed, Oscar-winning 1979 Vietnam War movie “Apocalypse Now.”

Page embraced and documented the drug culture since the 1960s in Indochina and the United States.

He worked as a freelance photographer from the late 1960s for music magazines including Rolling Stone and Crawdaddy, sharing assignments with some of the most significant writers of the era such as Hunter S. Thompson. Page embraced his “Gonzo photographer” reputation.

He was arrested along with Jim Morrison when with Doors frontman was famously dragged by police from a stage in New Haven, Connecticut, in 1967. Morrison was arrested for inciting a riot, indecency and public obscenity. Page was arrested obstructing police. Both spent the night in police cells before charges were dropped.

As well as the Indochina wars, Page also covered conflicts in Afghanistan, Solomon Islands, Israel, Bosnia and East Timor.

Page wrote a dozen books about his war experiences and music.

He was born in Tunbridge Wells in England on May 25, 1944. He was raised by a foster family after his merchant navy sailor father died in a submarine attack in the North Atlantic.

He left Britain in 1962, traveling through Europe, the Middle East and then Asia where he began photographing a civil war in Laos.

He created iconic images of the Vietnam War while working for news organizations including the AP, UPI, Time-Life and Paris Match.

He moved to Australia in 2002 to be with his longtime Australian partner Marianne Harris and became an adjunct professor of photojournalism at Griffith University at Brisbane in Queensland state.

He is survived by Harris and Kit Clifford, his son from a previous relationship with Clare Clifford.

Russian patriarch cancels event where he was to meet pope

25 August 2022, 

Russia Ukraine War Vatican
Russia Ukraine War Vatican. Picture: PA

Kirill has justified the invasion of Ukraine on spiritual and ideological grounds, calling it a ‘metaphysical’ battle with the West.

The head of the Russian Orthodox Church has cancelled his planned attendance at an interfaith meeting in Kazakhstan next month where he was expected to meet with Pope Francis, a top Orthodox official said.

The move is seen as a sign of further deterioration in relations over Russia’s war in Ukraine.

Metropolitan Anthony of Volokolamsk, head of foreign relations for the Moscow Patriarchate, was quoted by the Ria Novosti news agency as saying that Kirill would not be attending the September 13-15 meeting and that therefore any meeting with Francis was off.

Kirill has justified the invasion of Ukraine on spiritual and ideological grounds, calling it a “metaphysical” battle with the West.

He has blessed Russian soldiers going into battle and invoked the idea that Russians and Ukrainians are one people.

Francis had confirmed as recently as last month that he would meet with Kirill at the Kazakh meeting in what would have been the second-ever encounter between a pope and a Russian patriarch.

The first was in 2016 and their second had been planned for June but was postponed over the diplomatic fallout of the war.

Francis has denounced the war in Ukraine but has tried to keep a door open to dialogue with Moscow, refraining from condemning Russia, President Vladimir Putin or Kirill by name.

His balanced approach has angered Kyiv, which this week condemned his comments lamenting that innocents on both sides were paying the price of war.

Francis made those comments on Wednesday as he marked six months of war and referred to the weekend car bomb slaying in Moscow of Darya Dugina, a nationalist Russian TV commentator and daughter of the right-wing Russian political theorist, Alexander Dugin, who ardently supports the war.

Francis listed the “poor girl” killed by a car bomb in Moscow, as well as orphans in Ukraine and Russia, among the “innocents” who have been victimised by the “insanity of war.”

Ukraine’s ambassador to the Holy See, Andrii Yurash, said Francis’ words were “disappointing” by seemingly equating “aggressor & victim, rapist and raped”.

In a tweet on Wednesday, he asked how it was possible for Francis to cite an “ideologist of imperialism as innocent victim?”

By Press Association

Rolando Cubela, the Cuban Commander who Conspired to Kill Fidel Castro, Dies in Miami

Faure Chomón, Fidel Castro and Rolando Cubela after the triumph of the 1959 Revolution. (El rastro del invasor)

14ymedio bigger14ymedio, Havana, 24 August 24, 2022 — Commander, former political prisoner and doctor Rolando Cubela died at the age of 90 on Tuesday morning in the Miami hospital where he had been admitted for several weeks, according to family sources. A member of the Rebel Army, the guerrilla leader was part of a conspiracy to kill Fidel Castro in the 1960s.

Born in 1932 in the city of Cienfuegos, Cubela studied medicine and was a leader of the University Student Federation (FEU). After Fulgencio Batista’s military coup, on March 10, 1952, he joined the Revolutionary Directorate, a group founded by José Antonio Echeverría and Fructuoso Rodríguez.

Cubela was part of the clandestine cell that murdered Colonel Antonio Blanco Rico, head of the Military Intelligence Service, in Havana on October 27, 1956. After that action, he went into exile in Miami, where he was when his colleagues from the Directorate raided the Presidential Palace, on March 13, 1957, and failed to kill Batista.

Upon his return to Cuba, he established himself with other members of the Revolutionary Directorate in the guerrilla struggle in the Escambray mountains, where in 1958 he signed the Pact of El Pedrero with Ernesto Guevara and Camilo Cienfuegos, an alliance with the July 26 Movement that allowed the capture of the city of Santa Clara, in which Cubela was injured.

After Fidel Castro came to power, he was promoted to the rank of commander of the Armed Forces, and in 1959 he was elected president of the FEU over the other candidate, Pedro Luis Boitel, who in 1972 died on a hunger strike in prison. From the first years, Cubela began to have profound differences with the communist course of the revolutionary process.

In November 1963, a CIA agent met Cubela in Paris, who then held the position of military attaché of the Cuban embassy in Madrid. There he was given a feather, with poison in the quill, to puncture Castro when he was near him. But Cubela never used the device, since he preferred to use a rifle with a telescopic sight and silencer so as not to be so close to the target.

The delivery of the rifle was delayed, and the Cuban intelligence services ended up encircling Cubela, who was arrested in February 1966 and sentenced to death, although, due to Castro’s direct intervention, his sentence was commuted to 25 years, of which he served 12. In 1979, he went into exile in Madrid, where he worked as a doctor, and in 1988 he obtained Spanish nationality.

His profile in Madrid was very discreet due to the danger of being killed by Castro. In 2007, he participated in two public events organized by the Democracia Ya Platform, one of them in front of the Cuban Embassy in Madrid. Unlike other exiled commanders, such as Huber Matos and Eloy Gutiérrez Menoyo, Cubela did not found an anti-Castro organization during his time off the island.

After retiring from his job as a doctor, he settled in Miami, where he also maintained a low profile. The man who could have killed Fidel Castro survived him by at least six years.

Translated by Regina Anavy

S. Korean trade minister meets with biz leaders on disadvantageous provisions in new U.S. trade laws

Updated: 2022-08-25 

South Korean government officials met with business leaders today to talk about ways to deal with new laws in the U.S. that could put Korean companies at a disadvantage.
Those new laws seek to discourage the purchase of products with materials or components made in China.
Responses could include meeting with U.S. officials directly, changing Korea's production processes and/or sourcing materials from countries other than China.
Shin Ha-young reports.

The Biden administration's Inflation Reduction Act is a concern for South Korea's electric vehicle manufacturers as it only allows tax credits for cars that are assembled in North America.
Then there's the CHIPS and Science Act, which offers semiconductor manufacturers billions of dollars to build new fabrication plants in the U.S. with the condition that they will not make new investments in China.
South Korean companies would get those benefits too, but with strings attached known as "guardrails."

In response, South Korea's Minister of Trade, Industry, and Energy held a meeting with business leaders on Thursday to go over the impacts and to discuss ways to respond such as room for flexibility and possible exemptions.

"We need to prepare shields and spears; shields to deal with the challenges we're now facing under the new laws and sharp spears to take this situation as an opportunity to dominate the market."

In terms of the CHIPS Act, the ministry is planning to express the country's stance through existing channels it has with the U.S. Commerce Department.
Thursday's meeting was joined by officials from major companies including Samsung Electronics, SK hynix, and Hyundai Motor Group, which are expected to suffer under the new laws.
They discussed ways to deal with Inflation Reduction Act, such as by getting automakers to review their production plans and quickly beginning factory construction in the U.S.
For battery makers, it'll be about gradually switching mining investment to other countries like Australia and Chile.
Currently, Korea depends on China for the mining of the raw materials used to make batteries.
Minister Lee Chang-yang added that South Korea's response has been the fastest among other countries that're expected to feel the effects of the new U.S. laws.

"As part of the efforts, a ministry official will visit the U.S. for high-level consultation on the laws with Washington before the end of August, while the Trade Minister is planning to visit in September. Shin Ha-young, Arirang News."
Reporter : hyshin@arirang.com
Korea to seek joint response with EU over
Biden’s bill

Industry Ministry says WTO complaint over anti-inflation act is last resort

By Kim Yon-se
Published : Aug 25, 2022 -

Industry Minister Lee Chang-yang (right) speaks during a meeting with business leaders to take countermeasures against the US move to take a protective trade stance over some industrial sectors, such as semiconductors and electric vehicles, in Seoul on Thursday. 
(Yonhap)

SEJONG -- The South Korean government is to seek a joint response with the EU to deal with the US Inflation Reduction Act that slashes subsidies to electric vehicles not made on American soil, rather than seeking dispute settlement within the bilateral trade agreement frame the two forged years ago.

Seoul would continue to raise arguments that the US law goes against the Korea-US Free Trade Agreement, but a joint response scenario with other countries seems more feasible to press Washington than filing the case straight to the World Trade Organization, Industry Minister Lee Chang-yang said, adding he would visit the US next month.

Calling the a complaint “a last resort,” Chung Dae-jin, deputy trade minister, said the government will initiate consultations next month with the US and EU nations who also face damages.

According to the Ministry of Trade, Industry and Energy on Thursday, the move comes amid a situation where the US is set to prevent global chipmakers -- which are offered incentives and tax benefits in the US market -- from newly investing in the Chinese market for the next decade.

For the automobiles sector, the US is moving to offer a variety of benefits to only carmakers that produce electric vehicles at factories in the North American market.

The US has also specified that the electric vehicles should be powered by batteries produced in North America to satisfy the requirement of state subsidies.

These regulations are based on the Inflation Reduction Act and the Chips Act, both of which have passed through the US Congress.

The Industry Ministry held an emergency meeting with business leaders from the three industrial segments in Seoul on the day, saying the Korean government would not spare any effort to map out measures in close collaboration with the private sector.

Participants included executives from Samsung Electronics, SK hynix, Hyundai Motor, LG Energy Solution, Samsung SDI, SK On and business lobbies for semiconductors, automobiles and batteries.

The ministry said it would continue to hold talks with the US Department of Commerce in a bid to garner exemptions from the list of chipmakers that would be banned from investing in China and some other markets for 10 years in return for enjoying the coming incentives between 2022 and 2026 and tax deductions of 25 percent in the US.

The ministry said it “would bolster partnerships, which have already been fostered with the Commerce Department, if necessary, and actively utilize communication channels on bilateral supply chains” in an effort to minimize damages on the local semiconductor industry.

In the automobiles sector, the Industry Ministry forecasts that electric vehicles shipped to the US from Korea, Japan, Germany and Sweden will be excluded from the list of subsidy targets, as the US specified that it would apply the subsidy requirement of EVs, finally assembled in the US, starting from later this year.

Further, the EVs should meet the requirement of using batteries produced in the US.

Korea, which exported 32,000 EVs in 2021, may possibly take a joint action with the European Union, saying that few global EV producers could satisfy the strict requirements.

By Kim Yon-se (kys@heraldcorp.com)

‘Inflation law may disrupt Korean exports of 

100,000 plus EVs’

By Kim Da-sol
Published : Aug 25, 2022 - 



Manufacturing line for Ioniq 5 inside Hyundai Motor Group’s Ulsan production plant.
 (Hyundai Motor Group)

South Korean carmakers on Thursday said at least 100,000 electric vehicles built here would face disruption in export sales annually under the new US law, which excludes battery-powered vehicles made outside of the US from tax credits. They also urged the South Korean government to revise the current subsidy law and map out temporary measures for local carmakers, such as tax credits.

According to the Korea Automobile Manufacturers Association, of which Hyundai Motor and Kia are members, the new US law would hit hard not only Korean carmakers, but also some 13,000 subcontracted auto parts makers here who are already going through hard times due to a dramatic shift from combustion engine cars to electrified models.

As Hyundai and Kia make all their flagship EV models at domestic plants, they fear losing market competitiveness over the axed subsidies for foreign EV makers.

KAMA emphasized that Korean carmakers have hired over 100,000 US nationals through more than $13 billion in investments there over the past three decades. Korea has also subsidized EVs imported from the US in accordance with the US-Korea Free Trade Agreement.

In May, Hyundai Motor Group signed a $5.5 billion plan to build EV and battery manufacturing facilities in the US state of Georgia –- the first of its kind outside Korea.

“The US Inflation Reduction Act will constrict the South Korean production of EVs, and even negatively impact the country’s future mobility competitiveness and workforce in the EV sector,” said KAMA Chairman Chung Man-ki, adding that the South Korean government should review the current EV subsidy law and reexamine the system to soften the damage to local carmakers.

By Kim Da-sol (ddd@heraldcorp.com)

BlackRock 401(k) Suits Pressure Labor Department to Act 

Aug. 25, 2022,

 Glide path strategies a key point of legal contention

A surge in new lawsuits challenging workplace retirement plans over the set-it-and-forget-it funds they default investors into is renewing calls from industry critics who say the US Labor Department should be doing more to protect 401(k) savers.

At least 11 companies, including Booz Allen Hamilton Inc.Citigroup Inc., and Microsoft Corp., have been named in a spate of almost identical lawsuits going after a target-date index suite operated by BlackRock Inc.

Retirement plan participants at those firms claim their current or former employers mismanaged the plans by choosing BlackRock funds over better-performing market options. Retirement plan sponsors who are held to a strict fiduciary standard of prudence under the law failed to adequately track those investments over time, which resulted in a loss of savings potential, the lawsuits claim.

Target-date funds are the most common investment vehicle marketed to participants at work, but the one-stop-shop darlings of the retirement investment industry are confronting an unexpected set of challenges this year that cast a shadow over more than $1.8 trillion in savings. The litigation, new research suggesting most employers don’t use TDFs effectively, and lawmakers’ calls to investigate the way they’re managed are putting pressure on regulators to weigh in.

“The Department of Labor is supposed to be the regulator of fiduciary responsibility law in the United States; it’s their job,” said Daniel Aronowitz, managing principal and owner of Euclid Fiduciary. “I feel like they’ve abdicated their responsibility in this particular context, allowing plaintiff lawyers to serve as the regulator of fiduciary law.”

‘To’ vs. ‘Through’

A key component of the lawsuits targeting BlackRock’s index suite is the low-cost “to-retirement” glide path the company’s money managers use to balance underlying investments.

To-retirement TDFs stop trading once the target retirement date has been reached, but “through retirement” funds assume investors will keep their savings in the plan post-retirement. They keep trading, and have a different risk portfolio than to-retirement plans at different savings stages.

The Labor Department issued guidance for plan sponsors on “to” and “through” plan comparisons in 2013, and at least twice proposed and then delayed a set of specific disclosures sponsors would provide participants about the risks associated with funds before abandoning the rulemaking effort entirely in 2017.

“The department needs to resurrect the notion of putting some risk disclosures in plans, because these are inherently risky products,” said Ron Surz, president and CEO of PPCA Inc. and its division, Target Date Solutions.

Surz has spent years calling on the agency to do more to protect participants from TDF money mangers who he says have a financial interest in stacking plans with riskier investments near the target date. In July, he wrote an open letter to the Employee Benefits Security Administration in which he said fiduciaries should be forced to make an “explicit choice” between “safe” and “risky” target-date investment strategies.

No Action

Surz isn’t alone.

Morningstar Inc. published research in July recommending that the Labor Department issue more guidance clarifying the role sponsors need to play in the review and evaluation of target-date glide paths, and even amending the default investment rules to make customizable target-date options more appealing.

“This is an area that we haven’t seen guidance from the department since 2013,” said Lia Mitchell, a Morningstar retirement policy analyst. “I do think there’s a contingent of plan sponsors who are misunderstanding these products, and we’ve seen the industry change a great deal recently.”

Plan sponsors overwhelmingly default their investors in “through-retirement” glide paths, even though a minority of plan participants keep their savings in the plan after retirement, the Morningstar research shows.

Sen. Patty Murray (D-Wash.) and Rep. Bobby Scott (D-Va.) called for a government watchdog review of target-date funds last year. The pair asked the Government Accountability Office to examine the predominance of TDFs in the market, investment selection, marketing, and recommendations for future legislation or regulation.

“The millions of families who trust their financial futures to target-date funds need to know these programs are working as advertised and providing the retirement security promised,” the lawmakers wrote.

BlackRock isn’t named in any of the lawsuits, because the money manager doesn’t serve as a fiduciary to the plans whose investors access its funds. The company said it is deeply committed to retirement investment research and has a long history of working closely with plans and their consultants.

“Our investment process takes into account multiple factors, including return objectives, market cycles, time horizon, and risk management,” a company spokesperson told Bloomberg Law. “As a result, BlackRock’s LifePath Index funds are highly regarded by many fiduciary decision-makers and independent evaluators of investment products for delivering consistently strong outcomes for plan participants over time.”

Labor Department Responds

DOL officials this week said they have worked closely with the Securities and Exchange Commission to help clear up confusion about different target-date options in the market.

In May, the SEC proposed a names rule (RIN 3235-AM72) that would force companies to reevaluate not only the names but the underlying investment strategies they use to market target-date products, among others.

“I think it’s very confusing for individuals,” said Ali Khawar, acting assistant secretary for employee benefits. “We’re paying attention to this. I don’t have a promise of guidance, but I don’t have a promise of not guidance either.”

Khawar said he and the Solicitor’s Office have been monitoring the spike in cases targeting BlackRock funds to identify areas of general confusion where the department’s amicus guidance would be helpful.

“One of the questions we’re asking ourselves and talking to the Justice Department about is whether or not there’s an interest in the government participating in some way,” Khawar said.

Khawar stressed, however, that it’s exceedingly rare for the department to weigh in on cases at the district court level.

 DACA Rule Release Aims to Bolster


 Program for ‘ Dreamers’ 

Aug. 24, 2022, \

Administration aims to fortify program’s legal standing

Fifth Circuit considering arguments on policy’s legality

The Biden administration on Wednesday released the final version of regulations intended to fortify the Deferred Action for Childhood Arrivals program against legal challenges.

The program, launched in a 2012 memo by the Obama administration, offers protection from deportation and the ability to work legally to some 600,000 undocumented young people who came to the US as children. The regulation replaces the Obama-era memo and takes effect Oct. 31.

The Biden administration crafted the regulation in response to legal challenges that have plagued DACA since its inception. The rule doesn’t make the program bulletproof, however, as some litigants and judges question whether the Department of Homeland Security has authority to issue broad deportation protections at all.

“Today, we are taking another step to do everything in our power to preserve and fortify DACA, an extraordinary program that has transformed the lives of so many Dreamers,” Homeland Security Secretary Alejandro Mayorkas said in a statement.

Mayorkas called on Congress to pass legislation to create a pathway to citizenship for DACA recipients, often known as Dreamers. Many lawmakers quickly echoed that sentiment, pushing the Senate to take up House-passed legislation (H.R. 6) protecting Dreamers and other undocumented immigrants.

“This step forward does not take away from the urgency for 10 Senate Republicans to join all Democrats to pass the House-passed bipartisan Dream and Promise Act and provide certainty and a pathway to citizenship for our hardworking Dreamers across the country,” Congressional Hispanic Caucus Chair Raul Ruiz (D-Calif.) said in a statement.

The legislation would need the support of 10 Republicans and all Democrats to meet the Senate’s 60-vote threshold—an uphill battle amid increasing Capitol Hill polarization on immigration policy ahead of midterm elections.

Inside the Rule

The DHS’s final regulation maintains existing criteria for DACA status and the process for seeking work authorization. The rule will apply only to DACA renewal requests, not to new applications, while a federal court order remains in place barring DHS from granting new requests for status.

DACA has faced challenges in court from Republican-led states even after a Trump administration effort to rescind the program was overturned by the US Supreme Court in 2020.

Last year, Houston-based US District Judge Andrew Hanen ruled the program was unlawful because it was created through a secretarial memo and not a formal rulemaking process. The US Court of Appeals for the Fifth Circuit heard arguments in an appeal of that ruling in July.

“DHS has carefully and respectfully considered all aspects of the analysis in that decision, including that decision’s conclusions about DACA’s substantive legality,” the agency said in the final regulation Wednesday, adding that it “respectfully disagrees.”

The Department of Homeland Security received more than 16,000 comments in response to a draft rule released in September. The proposed rule largely codified the 2012 memo that created the program.

However, the draft regulations allowed recipients to apply for deferred action and work eligibility separately, to the chagrin of immigration advocates and business groups who feared that could ultimately undermine employment authorization. The final version retains the existing process.

(Updated with additional reporting throughout.)