UPDATED

Police investigate Royal Post Office over potential fraud offences after wrongful prosecution of subpostmasters


Sky News
Updated Sat, 6 January 2024 

The Metropolitan Police is investigating the Post Office over potential fraud offences after the wrongful prosecution of subpostmasters.

The police confirmed on Friday that it is looking into the handling of the Horizon IT scandal - "such as the monies recovered from subpostmasters as a result of prosecutions or civil actions".

Detectives are also separately looking into "potential offences of perjury and perverting the course of justice" in an investigation that was launched in January 2020.

Two people have been interviewed under caution, but nobody has been arrested.

Read more: The true story behind drama on Horizon IT scandal

Former subpostmasters and subpostmistresses were held liable by the Post Office for financial discrepancies thrown up by its computerised accounting system Horizon.

Faulty Fujitsu software made it appear as though money was missing from their outlets.

The Post Office's pursuit led to more than 700 prosecutions, criminal convictions and, in some cases, prison sentences.

Many of those pursued were told to plead guilty to crimes or face jail, according to lawyers who have represented dozens of those impacted.

They were forced to pay the Post Office money it claimed had gone missing, which meant many lost their jobs, homes and life savings.

It has been described as the most widespread miscarriage of justice in UK history, and a public inquiry into it is ongoing.

Read more:
Explainer: What is the Post Office scandal?

Post Office 'massively contributed' to subpostmaster death - widow

Victims of Post Office Horizon scandal offered £600k compensation

More than half a million people have signed an online petition calling for the former Post Office boss to have her CBE taken away over the scandal.

Paula Vennells later said she was "truly sorry" for the "suffering" caused to subpostmasters who were wrongly convicted of offences.

After ITV aired a drama into the scandal, Mr Bates vs The Post Office starring actor Toby Jones, 50 new potential victims have approached lawyers, it has been said

Post Office scandal: Petition to strip Paula Vennells of CBE signed by 600,000 people

Sky News
Updated Sat, 6 January 2024

In this article:
Paula Vennells
British businesswoman and Anglican priest


More than half a million people have signed a petition calling for the former Post Office boss to have her CBE taken away over the Horizon scandal.

Paula Vennells oversaw the organisation while it routinely denied there were problems with its Horizon IT system.

Demands for her honour to be removed have reemerged after ITV aired a new drama into the scandal, Mr Bates vs The Post Office, which tells how former subpostmasters and subpostmistresses were held liable by the Post Office for financial discrepancies thrown up by its computerised accounting system.

Police investigate Post Office over potential fraud offences

Their pursuit led to more than 700 prosecutions, criminal convictions and, in some cases, prison sentences.

A public inquiry into the scandal is ongoing.

Ms Vennells later said she was "truly sorry" for the "suffering" caused to sub-postmasters who were wrongly convicted of offences.

From 1,000 signatures to 350,000 in days

The ITV show has led to a surge of sympathy for the victims of the scandal and a rapid rise in the number of people signing the online petition, which was set up in 2021.

On Monday, when the first part was aired, it had about 1,000 signatures. By the time the final episode was broadcast on Thursday, the total had leapt past 350,000. So far, more than 600,000 people have signed it.

38 Degrees, the campaign group behind the petition, said that "many signatories [were] saying they'd been inspired to join the call by watching the drama," which "brought the long-running scandal to the attention of millions of people".

Robin Priestley, the group's campaigns director, said in a statement: "Paula Vennells keeping her CBE while many victims of the Horizon Scandal are still waiting for justice flies in the face of the fairer country we all want to see.

"The huge surge of public support for this campaign in the aftermath of Mr Bates vs the Post Office makes that very clear."

Read more:
The true story behind the drama on Horizon IT scandal

What is the Post Office scandal?

The prime minister on Thursday declined to say whether she should lose her honour.

"There's an independent process for honours forfeiture, which is done by an independent committee, so that's a separate process from government," Rishi Sunak said.

"But, more generally, my job is to make sure that we're putting in place the compensation schemes and all those people who were awfully treated, suffered an appalling miscarriage of justice, get the justice that they deserve, and that's what we're delivering."

Sir Keir Starmer told ITV News: "Whether she [Ms Vennells] hands back her award is really a matter for her.

"But I do think there's a more important point in many senses here, compensation for these victims is overdue."

Ed Davey must be held to account for ‘wicked’ ministerial decisions about Post Office, says victim

Hayley Dixon
Sun, 7 January 2024 

In this article:
Ed Davey
Leader of the Liberal Democrats, MP for Kingston and Surbiton

Liberal Democrat leader Sir Ed Davey has tried to distance himself from the Horizon scandal - Andrew Matthews

Sir Ed Davey must be held to account for “wicked” Post Office decisions, a victim of the scandal has said.

The Lib Dem leader has tried to distance himself from the Horizon scandal, claiming he was “deeply misled” while serving as the postal affairs minister between 2010 and 2012.

But those falsely accused of wrongdoing are demanding that he is subject to a full interrogation over what he knew and when.
Ministerial decisions ‘wicked’

Ex-postmistress Sally Stringer has said that the root of the scandal “goes back to ministerial decisions” some of which were “wicked”.

In what has been described as one of the biggest miscarriages of justice in British history, more than 700 postmasters were prosecuted after faulty accounting software, called Horizon, made it appear money was missing from their stores.

Events surrounding the scandal are back in the spotlight following an ITV drama, Mr Bates vs The Post Office, which was screened last week.

It has since emerged that Sir Ed and other ministers were repeatedly warned about the accounting problems and issues with the software.

ITV drama Mr Bates vs The Post Office has brought the events back into the spotlight - ITV press centre

Campaigner Alan Bates ended up cutting contact with Sir Ed after he said in response to numerous complaints in 2010 that he had checked with the Post Office and it “continues to express full confidence in the integrity and robustness of the Horizon system”.

In a letter seen by the Sunday Times, Mr Bates responded in 2011 saying: “Having nailed your colours to the POL’s [Post Office Ltd] mast from the [Justice For Subpostmasters Alliance] standpoint there was little point in continuing a dialogue with you or your department at that point.”
‘Bitterly regrets’

A spokesman for Sir Ed has said that he “bitterly regrets” that the Post Office was not honest with him and “in hindsight” he wishes that he could have done more.

However, Mrs Stringer, who ran a post office in Beckford, Gloucs, for 20 years and faced audits, accusations and demands for repayment of money that was supposedly missing, believes that the responsibility for the scandal lies at the door of the Government.

“ I think the problems with Post Office Limited goes back to ministerial decisions taken during the coalition government of the Liberal Democrats and the Conservatives formed in 2010,” she said.

“The ministerial decisions range from incompetent to wicked.”
‘Interrogate’ Sir Ed

She has asked the ongoing public inquiry to “interrogate” Sir Ed as well as former business secretary Sir Vince Cable and Jo Swinson, who also held the position of postal affairs minister whilst prosecutions took place.

Giving evidence to the ongoing public inquiry, Mrs Stringer said the CEOs of the Post Office are “pawns” in the scandal as “they did as they were told by [the Department of Business]... They are all dysfunctional to the core, the whole lot, and they need to be accountable.”

She added: “ There has to be a concerted effort to get the responsible individuals. It needs to be done as a block, otherwise those responsible will walk away nicely. I would like Vince Cable and Edward Davey to be cross examined about what they knew and did.”
‘Completely understands victims’ anger’

A Liberal Democrat spokesman said that Sir Ed did meet with postmasters and raise concerns whilst minister in charge of the Post Office.

They added: “Ed completely understands the victims’ anger at this appalling miscarriage of justice, and in hindsight he wishes he could have done more to help them. His focus is now on getting justice and compensation as quickly as possible to all those affected.

“Ed deeply regrets not realising that the Post Office was lying to him and other ministers on an industrial scale in what amounts to a conspiracy against the public. He will fully cooperate with the inquiry and is keen to give his evidence as soon as possible to help get to the bottom of this scandal.”

Liberal Democrat MP and former leader Tim Farron said: “Ed has said how much he regrets that the Post Office was lying to him, just like it was to everyone else. He’s experienced more than his fair share of tragedy in his life, I know he feels the pain of those affected by this scandal very deeply.”

What is Ed Davey's connection to the Post Office Horizon scandal?

Sir Ed Davey's role as postal affairs minister is coming back to haunt him as he faces accusations of 'fobbing off' victims of the Post Office Horizon scandal.

James Hockaday
Sun, 7 January 2024

Liberal Democrat leader Sir Ed Davey is facing questions over his former role as postal affairs minister. (Alamy)

Liberal Democrat leader Sir Ed Davey is in the hot seat over his handling of the Post Office Horizon scandal during his time as a government minister.

Correspondence published by The Sunday Times shows how sub-postmaster Alan Bates grew increasingly frustrated as he wrote to ministers from three successive governments over the issue.

This included Ed Davey, who served as postal affairs minister between May 2010 and February 2012 under the Lib Dem-Conservative coalition government. Bates said Davey's response to his concerns were not only "disappointing", but "offensive" too.


Campaigning over the scandal, which saw 700 Royal Mail staff members prosecuted between 2000 and 2014 based on incorrect information on the service's computer system, has been running for several years now.

However, ITV's recent drama Mr Bates vs The Post Office has thrust the issue back into the spotlight, with a petition to strip the postal service's former boss of her CBE passing 900,000.
Recommended reading

Ed Davey: I was misled by Post Office bosses over Horizon scandal (The Telegraph)


Government considers fast track appeals for wrongly convicted Post Office branch managers (The Independent)


Post Office scandal: Met Police launches investigation as petition to strip ex-boss of CBE passes 900,000 (Yahoo News)

With Ed Davey's record during the scandal also being brought into scrutiny, here's what we know about his role at the time.
Why is Ed Davey under pressure?

Ed Davey is facing questions over his role as postal affairs minister at a time when concerns were being raised over postmasters being wrongly incriminated due to errors by Horizon, a Post Office computer accounting system created by Fujitsu.

In a letter in May 2010, Bates urged Davey to intervene and push for an independent external investigation, The Sunday Times reported. He said: "The evidence is there to be found by anyone in a position of being able to unlock doors instead of placing barriers in the way of those pursuing the information."

Responding bluntly, Davey said the integrity of the Horizon system is a matter for Post Office Ltd and not the government. He added: "Whilst I do appreciate your concerns... I do not believe a meeting would serve any useful purpose."

Taken aback, Bates wrote back claiming that Davey's "arm's length" approach had enabled the Post Office to "carry on with impunity regardless of the human misery and suffering they inflict". He added: "You can meet with us and hear the real truth behind Horizon."

The Sunday Times reported that the pair met after this exchange, but when Bates subsequently wrote back to warn Davey of "yet another victim", the minister said he "made clear in the meeting" that neither he nor the Department for Business could step in before a legal judgement had been reached.
What backlash has Davey received?

Davey, and the Lib Dems in general, have been accused of "fobbing off the victims of Post Office miscarriages of justice" by SNP MP Joanna Cherry, who added: "With government comes responsibility."

She said that successive Conservative governments "shouldn't be off the hook", adding that it "falls on them to finally sort this out".

Speaking to GB News on Sunday, former BBC chief political correspondent John Sergeant suggested the Liberal Democrat leader's position was "crumbling" as a result of the scandal, adding: "I think it will come up time and time again, the role that he played."

The veteran journalist said that having attempted to palm the issue off as a Post Office matter, independent of any ministerial responsibility, Davey's position "completely crumbles" now that the government has conceded it has to pay compensation to victims.

Raising questions for Davey on Times Radio, Bates said: "I'd quite like to know how much briefing did Post Office executives do to him beforehand to steer him away from meeting with ourselves? What was said at that time? Why didn't he meet with us?"

Former Post Office chief executive Paula Vennells is facing calls to hand back her CBE. (PA)

How has Davey responded?

Responding to Bates's question, Ed Davey told Times Radio: "I regret not doing more. I feel, to be honest with you, I was deeply misled by Post Office executives. Alan is right to raise the point – they didn't come clean, and there were definitely attempts to stop me meeting them and I regret that we didn't do more, but we were clearly misled."

Asked about Post Office executives, Davey said: "Now they're dragging their feet, they're not bringing forward evidence to the inquiry and that is just outrageous given that there are postal masters getting older, some are even passing away sadly."

Davey said there were people "down the chain" from the chief executive who were "trying to prevent ministers and the wider public from knowing what was going on". He added: "I think they probably kept a lot of facts away from officials as well in the department."

A Liberal Democrat spokesperson said: "Ed's heart goes out to the families caught up in this scandal and his focus is on getting justice and compensation for those impacted. Not realising that the Post Office was lying on an industrial scale is a huge regret. Ed will fully cooperate with the inquiry to get to the bottom of what went wrong."

Mr Bates vs The Post Office: Sunak condemns 'appalling miscarriage of justice' of Horizon scandal

Sky News
Updated Sun, 7 January 2024



Rishi Sunak has condemned the Post Office Horizon scandal as an "appalling miscarriage of justice".

The prime minister also said ministers were examining whether to prevent the under-fire organisation from carrying out prosecutions or investigations in relation to the IT scandal.

The controversy has hit the headlines again following the airing of the TV drama, Mr Bates vs The Post Office.

Hundreds of people were held liable for financial discrepancies thrown up by faulty Fujitsu accounting software that made it appear as though money was missing from their branches.

This led to more than 700 convictions, criminal prosecutions and - in some cases - prison sentences. Dozens of victims died before they saw justice.

Speaking to broadcasters, the prime minister said: "This has been an appalling miscarriage of justice, an appalling treatment of all the people affected, and it's right that they get the redress that they deserve."

And Justice Secretary Alex Chalk is examining how to exonerate hundreds of subpostmasters and sub-postmistresses who were wrongfully convicted during the Horizon IT scandal - and whether further steps can be taken against the Post Office.

Speaking to the BBC on Sunday, Mr Sunak was asked whether the government would remove the Post Office's ability to investigate and prosecute.

Mr Sunak said: "The justice secretary is looking at the things that you've described, it wouldn't be right to pre-empt that process, obviously there's legal complexity in all of those things but he is looking at exactly those areas."

And he told broadcasters: "More broadly, the justice secretary is also looking at other options for how we can provide support for people.

"I can't pre-empt those findings, but we're keen to do everything we can because this was absolutely appalling.

"It should never have happened, we don't want it to happen again."

These measures are on top of the existing compensation schemes.

Mr Chalk is trying to determine whether the Post Office can be removed from the appeals process - meaning the Crown Prosecution Service would take over, The Sunday Times reports.

Sky's political correspondent Rob Powell said: "Politically pressure and attention is rising... about what can be done to make things right and better and what can be done to find out who is responsible for what went wrong.

"What The Sunday Times is reporting is that the justice secretary, Alex Chalk, is essentially considering ways to expedite the process by which people wrongfully convicted of these crimes can be exonerated.

"Government sources have confirmed to us that that work is taking place and that it would be around looking at how to remove the Post Office from the appeals process by which those convictions get quashed. In the past, we have seen the Post Office standing in the way of appeals going through."

Although the government announced a new fixed sum payment last year for victims of the scandal, critics have claimed the compensation doesn't go far enough - and is taking too long to be distributed.

Mr Sunak said: "The government has paid out about £150m to thousands of people already. Of course we want to get the money to the people as quickly as possible, that's why there are interim payments of up to, I think, £600,000 that can be made."

Pressure is also mounting on Liberal Democrat leader Sir Ed Davey, who was postal affairs minister when issues with the Horizon system started to emerge.

The Sunday Times says former sub-postmaster Alan Bates wrote to Sir Ed 12 years ago - and had warned that the accounting scandal could leave taxpayers exposed to "astronomical" costs.

It has also been revealed a frustrated Mr Bates cut off correspondence with the politician because he had received assurances from the Post Office that its systems were robust.

Former Lib Dem leader Tim Farron has defended Sir Ed, posting on X: "Ed has said how much he regrets that the Post Office was lying to him, just like it was to everyone else.

"He's experienced more than his fair share of tragedy in his life, I know he feels the pain of those affected by this scandal very deeply."

The scandal is expected to be a focus for many MPs when they return from their parliamentary recess on Monday.

It's been reported that Conservative MP Sir David Davis will call for Post Office managers involved in Horizon to be named and prosecuted, and for Fujitsu to lose its government contracts.

On Friday, the Metropolitan Police confirmed that it is investigating the Post Office over potential offences including fraud, perjury and perverting the course of justice.

While two people have been interviewed under caution so far, no arrests have been made.

Separately, more than 910,000 people have signed a petition calling for Paula Vennells - the former Post Office chief executive depicted in the ITV mini-series - to lose her CBE.

Fujitsu must use its billions to compensate Post Office Horizon scandal victims, say campaigners


Dominic Penna
Sun, 7 January 2024 

Fujitsu must use its billions to compensate victims of the Post Office sub-postmaster Horizon scandal, campaign leaders have said.

Tory peer Lord Arbuthnot and Baron Falconer, who sits in the House of Lords for Labour, have both played prominent roles in seeking justice for the hundreds affected.

They were convicted between 1999 and 2015 because Horizon, a faulty accounting system that was designed by Fujitsu, made it seem as though money was missing from their businesses.


The Japanese multinational is worth about £58 billion and Britain is one of its key markets, with the firm representing around 7,000 jobs in the UK.

In a column for The Sunday Times, the peers said: “The inquiry needs to examine in detail the role of Fujitsu, which provided and managed the faulty software.

“Was Fujitsu completely unaware of the devastating effect of its actions? Should it not contribute to the compensation claims of hundreds of sub-postmasters?”

Baron Falconer - Heathcliff O'Malley

The Government has continued to work with Fujitsu in the wake of the scandal, awarding it public sector contracts worth £3 billion since 2013.

Last week, the Environment Agency announced that the firm had been given a £2 million contract extension to run the flood warnings system after reported delays in finding a replacement supplier.

Lord Arbuthnot and Baron Falconer called for a full statutory public inquiry “without the restrictions and limitations of the current one”.

They added: “There needs to be a fast-track procedure, within the inquiry, to calculate how each individual sub-postmaster should be compensated, for loss of money, for the trauma through which they have been forced and in many cases for the punishments they have wrongly been given.

“We should be ashamed of ourselves. But the value in shame is that it encourages one to do better. Provided we take the right steps, without further foot-dragging, we can begin to put things back in place. But for too many sub-postmasters, that can never happen.”

Lord Arbuthnot - Chris McAndrew/UK Parliament

Evidence from the faulty Horizon system secured the prosecutions of 700 sub-postmasters between 2000 and 2014, with the Post Office prosecuting them for false accounting, fraud and theft. Out of these, only 11 have been compensated in full.

On Sunday, Andrew Neil, the veteran broadcaster, described Fujitsu as “complicit” in the scandal and said those responsible for the Horizon scandal should be held to account.

He said: “They should have their day in court too. But it was the Post Office which put innocent people in jail.”

A spokesman for Fujitsu told The Telegraph: “The current Post Office Horizon IT statutory inquiry is examining complex events stretching back over 20 years to understand who knew what, when, and what they did with that knowledge. The Inquiry has reinforced the devastating impact on postmasters’ lives and that of their families, and Fujitsu has apologised for its role in their suffering.

“Fujitsu is fully committed to supporting the inquiry in order to understand what happened and to learn from it. Out of respect for the inquiry process, it would be inappropriate for Fujitsu to comment further at this time.”

Police probe Britain’s Post Office for accusing over 700 employees of theft

California mountain lion population is thousands fewer than previously estimated

Louis Sahagún
Sun, 7 January 2024 

A mountain lion sprints across San Vicente Boulevard, in Brentwood, in October 2022. (Wally Skalij / Los Angeles Times)

Scientists have completed the first comprehensive estimate of mountain lions in California, a vital statistic needed to shape puma-friendly land-use decisions and ensure that the predators can find room to roam, mate and find prey.

The total number of mountain lions is estimated to be between 3,200 and 4,500, which is thousands fewer than previously thought. The count was conducted by state and university scientists who used GPS collar data and genetic information from scat samples to model population densities across the Sierra Nevada Mountains, the Mojave Desert and Southern California’s patchwork of weedy, fire-stripped wilderness.

“The greatest density is in the coastal forests of Humboldt and Mendocino counties of Northwest California, and lowest is the high desert east of the Sierra Nevada range in Inyo County,” said Justin Dellinger, a large-carnivore biologist and leader of the California Mountain Lion Project effort. “The Central Valley and portions of the Mojave Desert have no mountain lions.”

Two orphaned mountain kittens huddle in a transport crate on their way to the Oakland Zoo in November 2023. (Oakland Zoo)


A report on the project’s findings will be reviewed by experts prior to publication in a scientific journal later this year.

“There’s never been a study of this scale and over such a large and diverse geographical area with such a variety of habitats,” said Winston Vickers, a co-author of the study and a veterinarian at the UC Davis Wildlife Health Center.

Read more: Why did California officials drop two mountain lions in the desert and leave them to die?

The California Department of Fish and Wildlife had for decades estimated that the state’s mountain lion population was roughly 6,000 — even despite relentless vehicle strikes, wildfires and encroachment by land-hungry humans throughout their range.

“That old figure was just a back-of-the-envelope calculation without much data to support it,” Dellinger said. “The new, more accurate information we collected will be used to conserve and manage mountain lions more appropriately.”

In a collaborative effort involving the California Department of Fish and Wildlife, UC Davis, UC Santa Cruz, the nonprofit Institute for Wildlife Studies and the nonprofit Audubon Canyon Ranch, Dellinger and others traipsed through mountain forests, canyons and desert badlands in search of tracks. They also set trail cameras and traps, tranquilized lions, took biological samples and fitted animals with tracking collars.

Dellinger said the group spent roughly $2.45 million in state funds over seven years to produce three population estimates: One suggests there are 4,511 cougars living in California, and the other two suggest the number is roughly 3,200.

Read more: In a remote corner of California, roaming dog packs leave a trail of blood and terror

Deciding which figure is most precise will be challenging for biologists tasked with reviewing the census report.

They already agree on one thing: Humans are the greatest threat to mountain lions. In California, close to 40 million people live within, or adjacent to, cougar habitat.

Mountain lions as a species are not listed as endangered. But in Southern California, vehicle strikes, rat poison, inbreeding, wildfires, poaching, urban encroachment and freeway systems are all contributing to what scientists call an “extinction vortex.”

There’s an almost 1 in 4 chance that the charismatic cats could be extinct in the Santa Monica and Santa Ana Mountains within 50 years.

The state Fish and Game Commission has granted cougars in six regions — from Santa Cruz to the U.S.-Mexico border — extra protection under "candidate status" to be listed as threatened.

The action came in response to a petition co-sponsored by the Center for Biological Diversity and the nonprofit Mountain Lion Foundation. It argues that six isolated and genetically distinct cougar clans within those areas comprise a sub-population that is threatened with extinction.

The commission is expected to make a final decision later this year.

“We look forward to getting mountain lions the protection that is clearly warranted and desperately needed,” said Brendan Cummings, the Center for Biological Diversity’s conservation director.

Read more: Venomous snakebites kill thousands every year. A California doctor may have a solution

The effect of the designation would be far-reaching.

If the state Fish and Game Commission agrees, the state Department of Transportation would not be allowed to build or expand highways in core mountain lion habitat without implementing adequate measures to ensure linkages and safe passage over them.

In addition, large-scale residential and commercial development could be prohibited or limited in mountain lion habitats within a region covering roughly a third of the state.

The new mountain lion population assessment comes at a time of ongoing efforts by the state Department of Fish and Wildlife to identify and prioritize wildlife movement barriers across the state. It also comes at a time of growing support for wildlife crossings.

A view of the Wallis Annenberg Wildlife Crossing construction site on the 101 Freeway. The structure on the right holds a time-lapse camera to document the project. (Ricardo DeAratanha / Los Angeles Times)

One such bridge is the $87-million Wallis Annenberg Wildlife Crossing, currently being constructed over a 10-lane stretch of the 101 Freeway near Liberty Canyon in Agoura Hills.

In the meantime, officials are preparing new census campaigns to help guide development choices in areas where conflicts with other big predators over territory are testing public fortitude.

“The state is trying to get a black bear census off the ground,” Dellinger said. “Having as much data as possible is always best for managing species like that, especially in places where wilderness is overcrowded with people.”

This story originally appeared in Los Angeles Times.

NRA chief executive Wayne LaPierre announces resignation


Fri, 5 January 2024

Wayne LaPierre - Evelyn Hockstein/File Photo/Reuters

The longtime head of the National Rifle Association said Friday he is resigning, just days before the start of a civil trial over his spending of millions of dollars’ worth of travel, security and other perks at the powerful gun rights organsation’s expense.

Wayne LaPierre, the executive vice president and chief executive officer, said his departure is effective January 31. The trial in New York Attorney General Letitia James’ lawsuit against him, the NRA and others who have served as organisation executives is scheduled to start on Monday. LaPierre and ex-NRA President Oliver North are among the witnesses expected to testify.

LaPierre, 74, has led the NRA’s day-to-day operations since 1991, acting as the face and vehement voice of its gun rights agenda. He once warned of “jack-booted government thugs” seizing guns, called for armed guards in every school after a spate of shootings, and condemned foes backing gun control measures as “opportunists” who “exploit tragedy for gain”.


In recent years though, the NRA has been beset by dwindling membership and financial troubles, along with lingering questions about LaPierre’s leadership and spending. One of LaPierre’s top lieutenants, Andrew Arulanandam, will assume his roles on an interim basis, the organisation said.

“With pride in all that we have accomplished, I am announcing my resignation from the NRA,” LaPierre said in a statement released by the organisation. “I’ve been a card-carrying member of this organisation for most of my adult life, and I will never stop supporting the NRA and its fight to defend Second Amendment freedom. My passion for our cause burns as deeply as ever.”

Former US President Donald Trump greets Wayne LaPierre during the NRA's annual convention in 2022 - Brandon Bell/Getty Images North America

James, a Democrat, accuses LaPierre and other executives of illegally diverting tens of millions of dollars from the NRA and spending organisation funds on personal trips, no-show contracts and other questionable expenditures. LaPierre is accused in the lawsuit of spending millions on private jet flights and personal security and accepting expensive gifts — such as African safaris and use of a 107-foot (32-metre) yacht — from vendors.

He is also accused of setting himself up with a $17 million contract with the NRA if he were to exit the organisation, spending NRA money on travel consultants, luxury car services, and private jet flights for himself and his family — including more than $500,000 on eight trips to the Bahamas over a three-year span.

James is seeking to ban LaPierre and the other executives from serving in leadership positions of any not-for-profit or charitable organisation conducting business in New York, which would effectively remove them from any involvement with the NRA.

Some of the NRA’s excess spending was kept secret, the lawsuit said, under an arrangement with the organisation’s former advertising agency, Ackerman McQueen. The advertising firm would pick up the tab for expenses for LaPierre and other NRA executives and then send a lump sum bill to the organisation for “out-of-pocket expenses”, the lawsuit said.

LaPierre has defended himself, saying in previous testimony that cruising the Bahamas on a yacht was a “security retreat” because he was facing threats after mass shootings. He conceded not reporting the trips on conflict-of-interest forms, testifying: “It’s one of the mistakes I’ve made.”

UK
Exclusive: Police secretly conducting facial recognition searches of passport database

Chris Philp
Mark Wilding
Fri, 5 January 2024

It has emerged that forces searched the UK passport database using facial recognition technology more than 300 times in the first nine months of 2023 - iStock Editorial /Akabei

Police forces have been secretly conducting hundreds of facial recognition searches using the UK’s database of 46 million British passport holders, it can be revealed.

Chris Philp, the policing minister, raised the prospect last year of officers accessing the database of passport holders so they could use facial recognition to identify suspects in all burglaries, thefts and shoplifting.

An investigation by The Telegraph and Liberty Investigates, however, has found that the practice has been taking place since at least 2019 – with searches ramping up in the months before Mr Philp’s speech on the plans at October’s Tory party conference.


Data obtained from the Home Office through a Freedom of Information (FOI) Request shows forces searched the UK passport database – which contains the images of all 46 million British passport holders – using facial recognition technology more than 300 times in the first nine months of 2023. Forces have also carried out searches of the UK immigration database, which holds information on foreign nationals.

The revelation has sparked concern among MPs and watchdogs. After being told about the use of passport data, a spokesman for John Edwards, the information commissioner, said they would be raising the disclosure and its implications for data protection with the Home Office.

The spokesman said: “The Information Commissioner’s Office is engaged with the Home Office on a number of issues related to facial recognition technology to better ensure its use in line with data protection principles. We are now engaging on the issue of the passport database in light of this additional information.”
‘Importance of transparency’

David Davis, the former cabinet minister, said there was “no explicit legislative basis” for using facial recognition technology in the UK.

“The data on both the UK passport database and the immigration database was not provided for these purposes,” he said. “For the police to act like this undermines the data relationship between the citizen and the state. At the very least, the House of Commons should be informed precisely who authorised this and who carried it out.”

Tony Porter, the former surveillance camera commissioner, said it was “problematic” that passport holders’ data was being searched by police without their prior knowledge or consent that it was to be used for such a purpose.

“The other thing that is problematic is that the Government has extolled the importance of transparency. They should be putting this out there about how and why it’s legitimate otherwise they risk losing the trust and confidence of the public,” said Mr Porter, a former assistant chief constable.

Facial recognition technology allows the police to use images taken from sources such as CCTV or mobile phone footage – even those that are blurred or partially obscured – and search for matches in a database of potential suspects.

Use of the technology has sharply increased in recent years, and forces already conduct thousands of searches annually using the Police National Database, which holds around 16 million images of people who have been arrested including hundreds of thousands who were never charged or were cleared of an offence. Mr Philp is urging police forces to adopt facial recognition for its crime-fighting capabilities.

In December it emerged that police would also soon be able to search a database of Britain’s 50 million driving licence holders, under a new law making its way through Parliament.
‘It’s deeply concerning’

Madeleine Stone, senior advocacy officer at campaign group Big Brother Watch, said its extension to passports was “deeply concerning.” “There is no clear legal basis for this intrusive technology. We urgently need a democratic, lawful approach to the role of facial biometrics in Britain,” she said.

The FOI request shows police forces conducted 391 facial recognition searches of the passport database over the past five years – most of them in 2023, when more than two-thirds of territorial forces across England, Wales and Scotland conducted at least one search. Eleven searches of the immigration database were also conducted last year. The Home Office said they were targeted on the most serious offences.

The Metropolitan Police was responsible for almost one in three passport searches in the first nine months of 2023. A spokesman for the force said: “Retrospective facial recognition is used after a crime has taken place as part of an investigation to try and identify who a person is. This technology significantly helped progress numerous investigations including those for murder, rape and assault. We use a number of methods to try to identify suspects, in a small number of cases we will work with other organisations who may be able to assist us.”

A Home Office spokesman said: “The Government is committed to making sure the police have the tools and technology they need to solve and prevent crimes, bring offenders to justice, and keep people safe.

“Technology such as facial recognition helps the police quickly and accurately identify those wanted for serious crimes, as well as missing or vulnerable people. It also frees up police time and resources, meaning more officers can be out on the beat, engaging with communities and carrying out complex investigations.”

Bill Ackman and Elon Musk called DEI 'racist' but companies need it to succeed, experts say

Tim Paradis,Josée Rose
Sat, 6 January 2024 

Bill Ackman and Elon Musk.David A. Grogan, Slaven Vlasic/Getty Images

Billionaires and business leaders are arguing over whether DEI efforts should exist.


Investor Bill Ackman and Elon Musk say diversity, equity, and inclusion programs are "racist."


Corporate DEI efforts might evolve, experts told BI, but they're not likely to go away.

It's the abbreviation that has some billionaire bigwigs pretty worked up — and it's not AI.

The talk about DEI — diversity, equity, and inclusion — isn't about how to jumpstart efforts that once seemed almost universally lauded. It's about what's next for these programs following attacks on DEI by several high-wattage names in business.

Billionaire investor Bill Ackman, who became a vocal critic of how Harvard handled antisemitic rhetoric on campus, is now targeting DEI. In a post on X this week following the resignation of Harvard President Claudine Gay, Ackman said he believes DEI is "the root cause of antisemitism at Harvard," his alma mater.

The debate didn't end there. Elon Musk went after fellow billionaire Mark Cuban for his support of DEI efforts. Cuban, in a post on X, wrote that "there are people of various races, ethnicities, orientation, etc that are regularly excluded from hiring consideration." Musk replied that DEI was "just another word for racism."

The billionaire brawls over DEI signal that a focus on diversity — from academia to the corporate world — will further shift gears in 2024: Many of the efforts will stick around though some might evolve, experts told Business Insider.

"I don't think the work is going to stop," Joelle Emerson, cofounder and CEO of the DEI advisory firm Paradigm, told BI. "When I'm talking with boards and C-suite teams, I'm not hearing conversations around 'Oh, should we/shouldn't we.' I'm hearing conversations around how do we navigate the distraction that is this external kind of conversation?"

Part of the reason DEI efforts might change is practical. There are fewer people to carry out the work following layoffs in DEI departments over the past year or so. More than one in three people who started a role related to diversity following the 2020 killing of George Floyd, which touched off widespread social-justice protests and drew attention to DEI work, have left the field, according to research by data provider Live Data Technologies.

Another reason why changes to companies' DEI programs are likely is because the business world goes through cycles of enthusiasm for various topics, Jeffrey Sonnenfeld, senior associate dean for leadership studies at Yale School of Management, told BI. The current focus is artificial intelligence, so it's little surprise, he said, that there's less attention on DEI at many companies.

And, in the case of the attacks on Harvard, Sonnenfeld said communication failures by the university's governing board left an opening for critics of Gay to make the issue about DEI rather than her testimony before Congress over hate speech on campus and on subsequent accusations of plagiarism in some of her work.

"They left a vacuum there for people to fill with this stuff — with this DEI explanation. And what does that do?" Sonnenfeld said. "It horribly discredits some of the finest educators this country has."
DEI backlash grew after the Supreme Court's ruling

The latest attacks on DEI follow the Supreme Court's decision in June that effectively struck down the use of affirmative action in college admissions. Some schools had relied on affirmative action to consider race when deciding whom to admit.

That decision, which appeared to embolden conservative critics of the practice, also left some in the corporate world undeterred when it comes to diversity. In a survey of 400 C-suite and HR leaders in the weeks after the court's decision, the executive search firm Bridge Partners found that 96% of business leaders described DEI programs as being "very or somewhat important" to their organization.

Sonnenfeld, who's also the founder of Yale's Chief Executive Leadership Institute, said companies have been implementing DEI programs because they believe they're good for the bottom line. Research from McKinsey, for example, shows diverse and inclusive companies tend to be more profitable. They also file more patents and show greater innovation, research has shown.

"Having a better representation in your leadership of your workforce, and having a better representation of your owners, your customers, and your communities in your leadership is seen as a huge plus by 95% of corporate America," Sonnenfeld said.
DEI can be good for business

Sonnenfeld said it's unlikely CEOs will retreat from their efforts around diversity even if some of the work becomes the target of critics. "I don't know of any CEOs that are shrinking for fear of being called out," he said.

Kedra Newsom Reeves, a managing director and partner at Boston Consulting Group, told BI that equity and inclusion efforts can drive tangible results for a business. These include boosting innovation, increasing access to customer markets, and improving employee performance.

She explained BCG advises companies to think about using "an equitable, inclusive strategy to drive your own competitive advantage and performance in a way that's beneficial to you as an organization because you do have a fiduciary duty to your shareholders and beneficial from a social perspective as well," she said.

That idea of fiduciary duty is one some critics of DEI efforts are exploring as they make the case that companies' considerations of workers' backgrounds have meant talented workers were excluded. That, they argue, could sideline the best and therefore put shareholders at risk.

And there are signs that some companies are pulling back from their work around diversity, in some cases because there are indicators it's not been all that effective.

Emerson said some of the corporate conversations around DEI early on were performative because leaders didn't want to be called out for not addressing the issues. Having separate teams of DEI experts might not have been as effective when other teams were left to make decisions around things like hiring. Instead, she said, the work of ensuring various voices are included needs to be handled across teams.

"I hope we're going to move away from the trend of this being sort of a flashy topic that sits on its own as sort of a check-the-box," Emerson said.

Newsom Reeves said BCG encourages its clients to think less about organizational diversity targets and focus on outcomes.

Despite the rhetorical heat on DEI, she said, many companies that are still pursuing their diversity initiatives are looking at metrics like how to boost employee retention and drive revenue. "It is not simply DEI for DEI's sake," Newsom Reeves said. "It's really about how do we drive impact as companies."

The debates about DEI following the fights at Harvard are regrettable, Sonnenfeld said, because they miss the point over why Gay was forced to resign — the handling of her Congressional testimony and the allegations of plagiarism.

"Making her a poster child of DEI issues — that's exploiting her. This poor person, this professional who had some tragic missteps, should not become an ideological political football for people on different sides of the political spectrum. That wasn't the issue here," he said.

Royal Navy advertises on LinkedIn to hire nuclear Rear-Admiral


Danielle Sheridan
Fri, 5 January 2024 

Defence sources told The Telegraph they hoped to attract a retired officer who commanded a submarine during their naval career - DFID/Alamy Stock Photo

The Royal Navy has been forced to use LinkedIn to advertise for a Rear-Admiral to be responsible for the nation’s nuclear deterrent amid a growing recruitment crisis.

No serving sailors are suitable to replace Rear-Admiral Simon Asquith, the current Director of Submarines, and the Navy has turned to the professional networking site to find his successor.

Defence sources told The Telegraph they hoped to attract a retired officer who commanded a submarine during their naval career to the £150,000-a-year, two-star position.


The advertisement says candidates must be a member of the reserves or have previously served in the regular forces and, if chosen, will be responsible for “highly classified stealth, elite operations and Trident, our nuclear deterrent”.

It comes a day after The Telegraph revealed that the Navy has so few sailors that it has to decommission two warships to man its its new class of frigates.

HMS Westminster and HMS Argyll will be decommissioned this year so crews can be transferred to new Type 26 frigates expected to come into service from 2028.

Grant Shapps, the Defence Secretary, has also put forward plans to scale back the use of two amphibious assault ships, HMS Albion and HMS Bulwark, so that they remain at a state of extended readiness. The Telegraph understands that neither assault ship will be decommissioned and that crew will remain on board.

While it is not unusual for the Navy to recruit through Linkedin, the role is its highest ranking position to have been advertised on the platform.

The Rear-Admiral position is the sixth promotion an officer can reach – two away from being made Admiral, the highest rank in the Navy.

“It’s an initiative we are introducing across all ranks,” a source said of the advert, which was first reported by The Times. “It gives people the flexibility and allows us to take advantage of skills acquired in the civilian sector.”

Last year, Rishi Sunak announced plans to make it easier for military personnel to “zigzag” between the Armed Forces and the Civil Service in order to retain top talent.

It comes as the Armed Forces experience a significant recruitment crisis, with the Navy having suffered a collapse in the flow of new recruits into the service.

In the 12 months to March, MoD figures showed that the Navy, which has 29,000 full-time recruits, performed the worst out of the three services for recruitment.

Tom Sharpe, a former Navy commander, said: “In an ideal world, the Royal Navy would select from within – but we’re not in one, so throwing the net a little wider for this role makes some sense to me.”

A Royal Navy spokesman said: “It would be inappropriate to comment ahead of any appointment being made.”

Asked about plans to mothball HMS Albion and HMS Bulwark, a Royal Navy spokesman said: “The Ministry of Defence is committed to ensuring that the Navy has the capabilities it needs to meet current and future operational requirements.”

Calling all guitar heroes, The Smashing Pumpkins are hiring

AFP
Fri, 5 January 2024 

Billy Corgan and James Iha of The Smashing Pumpkins perform at Irving Plaza in September 2022 in New York (Theo Wargo)

Could you be the next member of The Smashing Pumpkins?

The influential alt rockers who achieved 1990s fame with hits including "Cherub Rock" and "Tonight, Tonight" are seeking an additional guitarist -- and welcoming resumes.

"The application process is open to anyone who might be interested," the band wrote on X Friday, inviting potential candidates to send their CVs and "related material."


Jeff Schroeder had played with the band's most recent iteration from 2007 until 2023, when he announced his departure.

Originally formed in the late 1980s in Chicago, The Smashing Pumpkins gained acclaim for their brand of metal fused with dreamier pop sounds, catapulting to commercial success and becoming a Gen X touchstone band until their breakup in 2000.

Founding member, primary songwriter and front man Billy Corgan rebooted the band in 2006.

Along with Corgan two of the original members, guitarist James Iha and drummer Jimmy Chamberlin, rejoined over the past decade.

And now, with the departure of Schroeder, the rockers are looking to round out their sound with a fourth ahead of a European tour with Weezer set to launch June 7 in Birmingham, England.

Later in the summer they -- and you? -- will join the Saviors stadium tour with Green Day, Rancid and Linda Lindas, which is slated to begin July 29.

mdo/bfm

UK

Fresh by-election nightmare for Rishi Sunak as Tory MP vows to quit over oil drilling law

Jacob Phillips
Fri, 5 January 2024 

Former energy minister Chris Skidmore (PA Archive)

Rishi Sunak’s Government was plunged into fresh crisis on Friday as a Tory MP vowed to stand down "as soon as possible" over new legislation he argues “clearly promotes the production of new oil and gas”.

As the Prime Minister tried to kick start a Tory New Year recovery, he was hit by a bombshell announcement from former energy minister Chris Skidmore.

It means the Tories will have to defend two seats which could easily swing to Labour in upcoming by-elections.

Mr Skidmore, who said he will resign the Conservative whip, launched a scathing attack on Mr Sunak’s green credentials which have already been heavily criticised by former environment minister Lord Goldsmith.

A by-election will be held in his Kingswood constituency in Gloucestershire, providing another headache for Rishi Sunak.

The Tories are already gearing up for a by-election in Wellingborough after disgraced MP Peter Bone was unseated by voters in a recall petition.

Mr Skidmore, who led a Government review of net zero, said the "future will judge harshly" anyone who backs the Offshore Petroleum Licensing Bill due before the Commons on Monday.

In a lengthy statement posted on X, formerly Twitter, he said the bill "would in effect allow more frequent new oil and gas licences and the increased production of new fossil fuels in the North Sea".

The politician has previously opposed the bill and said he did not vote in the King's Speech debate to protest it being in the Government's legislative programme.

The former minister said: "As the former energy minister who signed the UK's net zero commitment by 2050 into law, I cannot vote for a Bill that clearly promotes the production of new oil and gas."

He went on: "To fail to act, rather than merely speak out, is to tolerate a status quo that cannot be sustained. I am therefore resigning my party whip and instead intend to be free from any party-political allegiance."

Mr Skidmore added that his decision to resign the whip meant his constituents "deserve the right to elect a new Member of Parliament".

He said: "I therefore will be standing down from Parliament as soon as possible."

He confirmed to the PA news agency that he would quit "next week when Parliament is back", with the Commons still on its Christmas recess until Monday.



Responding to Mr Skidmore's post Lord Goldsmith wrote on X: "Well said Chris Skidmore the party will need to regroup after Sunak has crashed it against the rocks.

"Those who see themselves as part of that future should think very carefully about backing this nonsense policy."

Reacting to the news about Mr Skidmore's resignation Green Party co-leader Carla Denyer said: "As the world burns, the Tories turn in on themselves.

"The Government's green credentials are truly in tatters. The climate crisis is here and now and being experienced by people across the country, but the Prime Minister can't hold on to anyone who has any good intentions toward the environment."

Tory MP Chris Skidmore to quit over bill 'that promotes production of new oil and gas'

Sky News
Updated Fri, 5 January 2024


A former energy minister has said he will quit as a Conservative MP over new legislation "that promotes the production of new oil and gas".

Chris Skidmore has said he will resign when parliament returns next week over the Offshore Petroleum Licensing Bill.

The senior Tory had already announced his intention to stand down at the next general election, but bringing this forward will trigger a by-election in his Kingswood constituency in Gloucestershire.

That seat is being abolished at the election in constituency boundary changes, meaning whoever takes his place could be an MP only for a matter of months, with Rishi Sunak expected to go to the polls in the second half of this year.

Announcing his decision on social media, Mr Skidmore said: "The bill would in effect allow more frequent new oil and gas licences and the increased production of new fossil fuels in the North Sea.

"I can no longer stand by. The climate crisis that we face is too important to politicise or to ignore."

The Offshore Petroleum Licensing Bill will allow oil and gas companies to bid for new licences to drill for fossil fuels every year.

The government argues it is important for domestic energy production but it has been widely criticised by climate groups.

Mr Skidmore, who has been critical of his party's green record before, warned MPs who vote for the legislation that the future will judge them "harshly".

He said: "It is a tragedy that the UK has been allowed to lose its climate leadership, at a time when our businesses, industries, universities and civil society organisations are providing first-class leadership and expertise to so many across the world, inspiring change for the better.

"I cannot vote for the bill next week. The future will judge harshly those that do.

Read More:
When could the next general election be - and what factors will influence Rishi Sunak's decision?

"At a time when we should be committing to more climate action, we simply do not have any more time to waste promoting the future production of fossil fuels that is the ultimate cause of the environmental crisis that we are facing."

Mr Skidmore said he would resign the Conservative whip to make him an independent and quit as an MP "as soon as possible".

He confirmed to the PA news agency that he would quit "next week when Parliament is back", with the Commons still on its Christmas recess until Monday.

By-election headache

Mr Skidmore has been an MP since the Conservatives came to power in 2010. He has been a leading voice in the Tory party on climate issues and as energy minister under Boris Johnson, led the government's review into Net Zero.

He has held Kingswood since 2010, beating second-placed Labour by 11,220 votes at the last general election.

That margin is far smaller than in the last two by-election upsets Labour handed to the Tories, when a 24,664-vote majority was overturned in Mid Bedfordshire and 19,634 in Tamworth.

Sunak faces new by-election nightmare as senior Tory MP Chris Skidmore quits in net zero row


Adam Forrest
Fri, 5 January 2024

Rishi Sunak has been hit with another by-election as a senior Tory MP quits the party and his seat in protest over the PM’s climate failures.

Chris Skidmore – the former net zero tsar and former energy minister – has said he will resign the Conservative whip and stand down as an MP next week.

In a scathing exit statement he said he could no longer continue as a Tory or “condone” the government because the PM’s environmental stance is “wrong and will cause future harm”.

The MP for Kingswood, in Gloucestershire, said resigning the whip meant his constituents “deserve the right” to elect a new MP in a by-election. “I therefore will be standing down from parliament as soon as possible.”

Despite a Tory majority of 11,000, the struggle to hold off Labour will be a potentially demoralising struggle for Mr Sunak, as he seeks to build some momentum ahead of the 2024 general election.

Mr Skidmore later said that he would quit when the Commons returns from Christmas recess on Monday – setting up a contest in the blue wall seat in February or March.

While the area has been fertile ground for the Lib Dems, Labour came second in the seat in 2019 – so it would seem to provide Sir Keir Starmer’s party with an ideal opportunity to deliver a fresh blow to Mr Sunak.

The Conservatives lost a string of by-elections in 2023, with Labour overturning big majorities in Mid-Bedfordshire, Tamworth and Selby and Ainsty.

And the battle for Mr Skidmore’s seat is one of three by-elections the Tory party could lose in the early months of 2024.

Peter Bone’s Wellingborough seat will soon see a contest after the Tory MP was removed in a recall petition following his suspension for upheld sexual misconduct claims.

And Scott Benton’s Blackpool South seat could also be up for grabs after his 35-day suspension over a sting which exposed him offering to lobby for gambling investors.

Mr Sunak’s proposed energy bill – to be introduced in the Commons next week – will allow new fossil fuel extraction licences in the North Sea.

The bill would mandate that licences for oil and gas projects in the North Sea are awarded annually, and was seen as a challenge to Labour, which said it would ban new exploration licences to focus on renewables.

In a statement posted on X Mr Skidmore said: “As the former energy minister who signed the UK’s net zero commitment by 2050 into law, I cannot vote for a bill that clearly promotes the production of new oil and gas.

“To fail to act, rather than merely speak out, is to tolerate a status quo that cannot be sustained. I am therefore resigning my party whip and instead intend to be free from any party-political allegiance.”

Labour’s campaign leader Pat McFadden said Mr Skidmore’s exit showed that Mr Sunak was “too weak” to lead his party or the country for much longer. The Lib Dems called his exit an “embarrassing mess” which showed a government in chaos.

Rishi Sunak with King Charles at the Cop28 summit in Dubai (PA)

The PM was heavily criticised by campaigners, opponents and green Tories over his July announcement of around 100 new oil and gas licences. Mr Skidmore said the move was the “wrong decision at precisely the wrong time”.

Mr Sunak also faced a backlash from Tory environmentalists after backtracking on more key government climate pledges to reach net zero in September.

In the wake of a surprise by-election victory in Uxbridge over the London mayor’s Ulez charging scheme, the Tory leader also attacked climate “zealots” and said he was on the side of motorists.

The PM then announced that the 2030 ban on the sale of petrol and diesel cars – and gas boilers – would be pushed back to 2035.

Former minister Zac Goldsmith – who quit in June with a swipe at Mr Sunak’s “apathy” toward climate change – said the moves were reprehensible and had “destroyed UK credibility on climate change”.

Boris Johnson also condemned his successor – warning that Mr Sunak was in danger of losing “ambition for this country”, and arguing that businesses were desperate for clear net zero commitments.

Mr Sunak was also accused of “shrinking and retreating” on the climate crisis at the Cop28 summit, as he was condemned for spending more time flying to Dubai than at the conference itself.

The PM insisted that the UK government can still “stand tall” and remain a leader on climate change – despite his own rollback of net zero ambitions at home.

Buyers Shun Argentina Reconstruction Bonds for Second-Straight Week

Ignacio Olivera Doll and Kevin Simauchi
Thu, January 4, 2024 


(Bloomberg) -- The Argentine Central Bank’s second auction to pay down importers’ debts owed to suppliers abroad saw another batch of disappointing results on Thursday.

The bank said it sold just $57 million out of a maximum of $750 million of notes available. The fresh setback for the government of Javier Milei — reported by Bloomberg earlier on Thursday — follows a similar flop last week, when the auction saw sales of just $68 million of the $750 million offered.

The bonds — which importers can buy and resell in the secondary market to other investors in exchange for US dollars — are key to helping importers settle some $30 billion owed to suppliers abroad and improving the central bank’s balance sheet. The sales are also meant to help Milei wrestle a chronic dollar shortage and strict capital controls, both of which have bottlenecked trade.

Since taking office in December, Milei has announced a swath of measures to pull Argentina’s economy back from the brink of its sixth recession in a decade. The “shock therapy” package included devaluing the peso by more than 50%, along with massive cuts to government spending.

The sales — which are seen as key for Argentina to eventually unify its different exchange rates — also come as the government has about $1 billion in interest payments to bondholders due next week.

The dollar-denominated importer notes are called “Bopreal” — which stands for “bonds for the reconstruction of a free Argentina” — and offer a 5% annual interest rate. They can be bought in local currency, which in turn would help the central bank absorb some pesos in the economy in a bid to ease annual inflation expected to exceed 220% in December.

 Bloomberg Businessweek

WORKERS CAPITAL

Calstrs Seeks to Borrow More Than $30 Billion to Manage Cash

Eliyahu Kamisher
Thu, January 4, 2024 



(Bloomberg) -- The California State Teachers’ Retirement System, the country’s second-largest pension fund, may borrow more than $30 billion to help it maintain liquidity without having to sell assets at fire-sale prices, according to a new policy its investment committee will consider this month

If approved, the policy will allow staff to borrow as much as 10% of the roughly $318 billion portfolio. The proposal calls for leverage to be used “on a temporary basis to fulfill cash flow needs in circumstances when it is disadvantageous to sell assets,” a Calstrs policy document said.

Calstrs board members will review a first draft of the policy at its Jan. 11 meeting. A representative for the pension declined to comment.

The California Public Employees’ Retirement System board approved adding 5% leverage in 2021, adopting an investment strategy that could enhance returns but potentially increases the risk of losses during market downturns.

Meketa Investment Group, a Calstrs consultant, said increased leverage poses minimal risk to the fund. Calstrs already leverages 4% of its portfolio, and the new policy would not create a new asset allocation policy. Instead leverage would be used to smooth cash flow and as an “intermittent tool” to manage the portfolio, Meketa said in a board document.

Calstrs is also planning to open a satellite investment office in San Francisco to help attract and retain talent outside of its West Sacramento headquarters. The 5,000-square-foot office will initially house 12 members of the investment team and could accommodate as many as 35 people over the next five years.

“A San Francisco office will not only help to recruit new talent, but it will also help retain current talent by shortening long commute times for staff residing in the greater Bay Area,” Calstrs said.

The pension fund has an annualized return of 7.2% over the past five years, exceeding its 7% return target. In the 2022-2023 fiscal year Calstrs posted a 6.3% net return.

Most Read from Bloomberg Businessweek

Distressed Builder Puts Korea on Edge Again as Risk Mounts

Finbarr Flynn, Heejin Kim and Whanwoong Choi
Fri, January 5, 2024 

(Bloomberg) -- South Korea is again in damage control mode, seeking to contain fallout from a construction firm’s debt woes that risk replicating replicating a recent credit crunch.

In the cross-hairs this time is Taeyoung Engineering & Construction, which shocked markets late last month with a request to reschedule payment terms for project financing loans. These securities were also the source of two earlier episodes of stress, including one triggered by the default of the developer of the Legoland theme park in 2022 that snowballed into the worst meltdown in the country’s credit market since the global financial crisis.

The proposal of Taeyoung, whose projects include a baseball stadium, amusement parks and buildings in Seoul, caused a selloff in bank and developer stocks. Its won-denominated bond due in July plunged to about 62% of its par value from 97% on Dec. 26, according to Bloomberg-compiled data.

Investors’ unease came even as Korean officials pledged to step up a $66 billion program to stabilize markets if needed, with the country’s finance minister vowing authorities “will make every effort” to limit the spillover. On Friday, Taeyoung’s creditors expressed disappointment after a meeting to discuss its restructuring request and characterized its leverage as excessive.

Taeyoung’s payment struggle is the latest example of the side effects of global central banks’ aggressive monetary tightening that has worsened a housing slump in countries including Korea. It’s also a reminder of the risk from some local lenders’ undue reliance on property-related loans as a source of profit.

Founded in 1973, Taeyoung secured 400 billion won ($304 million) of fresh funds when its holding company sold bonds in a deal with KKR & Co. last year and then in December, it said it would sell a stake in Pocheon Power Co. for 42 billion won to secure liquidity. A spokesperson for KKR declined to comment.

The construction firm is more exposed than others in the sector to project financing liabilities. With the company in the throes of a liquidity crisis, the 90-year-old founder Yoon Se-Young has returned to try to save the company, meeting with creditors earlier this week.

Taeyoung should submit a self-rescue plan this week and creditors will decide by Jan. 11 whether to begin restructuring procedures, Lee Bokhyun, governor of the Financial Supervisory Service, a market watchdog, said at a briefing Thursday. The FSS has a contingency plan to stabilize financial markets, if needed, he said.

“The incident will dent market sentiment in the short-term capital market and the real-estate financing market,” Lee Kyoung-rok, an analyst at Shinyoung Securities Co., wrote in a note. While the worst-case scenario would be the “spreading of a crisis in Taeyoung into other builders and causing a liquidity risk at banks,” Lee expects regulators to stop that from occurring.

Taeyoung’s top creditor Korea Development Bank has urged the builder to present a way forward so as to win enough support for rescheduling its debt. As the construction firm applies for a debt workout, all of its liabilities will be frozen, KDB said in a statement. Once the restructuring begins, creditors should negotiate with each other on how individual loans should be handled, it added.

The construction firm’s debt woes are reminiscent of the financial stress caused by a theme-park developer’s default in late 2022 on the same type of short-term loan, which later snowballed into the worst meltdown in the country’s credit market since the global financial crisis. The chaos at that time forced the government to unleash an array of rescue measures to calm markets.

Policymakers had to step in again last year when the branch of one of Korea’s biggest credit unions was shut after reporting a 60 billion won loss on such loans, prompting authorities to set aside more than $100 billion worth of rescue funds.

--With assistance from Daedo Kim, Shinhye Kang and Abhishek Vishnoi.

Bloomberg Businessweek