Thursday, April 15, 2021

Malaria mutations may be gaining a foothold in Africa, shows new data

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Reviewed by Emily Henderson, B.Sc.Apr 15 2021

New data provide the first clinical evidence that drug-resistant mutations in the malaria parasite Plasmodium falciparum may be gaining a foothold in Africa. The study, conducted in Rwanda, is published in The Lancet Infectious Diseases journal and finds for the first time that the mutations are associated with delayed parasite clearance, as was first shown in South-East Asia when artemisinin-resistance started to emerge.

The study also finds that the mutations are more prevalent than previous studies have reported, indicating likely transmission of the mutations, and raising concern about further geographical spread of resistance.

There are an estimated 229 million cases of malaria worldwide, and there were 409,000 deaths from malaria in 2019 - of which 274,000 (67%) were among children under 5 years. 94% of all malaria cases and deaths occur in Africa, and experts have long been concerned about the potential emergence of drug resistance across the continent.

While the efficacy of current therapies remains high, the authors call for more intensive surveillance in Rwanda as well as neighbouring countries to help monitor the spread of mutations and inform public health actions.

Mutations can emerge spontaneously, and previous studies have pointed to isolated cases of resistance. However, our new study shows that resistant isolates are starting to become more common and most importantly, are associated with clinical implications (delayed parasite clearance)."

Dr Aline Uwimana, Study Lead Author, Rwanda Biomedical Centre, Kigali, Rwanda

Co-author Dr Naomi Lucchi, CDC Resident Advisor for the U.S. President's Malaria Initiative adds: "our study showed that the treatment for malaria in Rwanda is still 94% effective, but new studies and ongoing monitoring are urgently needed."

Artemisinin-based combination therapies (ACTs), introduced in the early 2000s, are currently the most effective and widely used treatments for malaria caused by Plasmodium falciparum. ACTs combine an artemisinin component that clears most of the parasites from the patient's body within three days, and a long-acting partner drug that clears the remaining parasites.

Resistance to the artemisinin component of an ACT is suspected if the presence of the parasite remains after day three of treatment (called delayed parasite clearance). This drug resistance is associated with parasites carrying mutations in the Plasmodium falciparum kelch 13 gene (pfk13).

Currently, ten mutations in pfk13 have been confirmed as markers of artemisinin partial resistance (including R561H, P574L and C580Y), and several other mutations (referred to as candidate markers) have been identified as potentially associated with resistance.

Partial artemisinin resistance was first identified in Cambodia in 2008. It is now well-documented in many South East Asian countries, where the C580Y mutation is common. Evidence from the Mekong region has shown that once artemisinin resistance becomes prevalent, resistance to the partner drug often follows, resulting in ACT treatment failure.

In 2006, Rwanda introduced artemether-lumefantrine (an ACT, and the most widely used antimalarial) as the first-line treatment for malaria.

The World Health Organization recommends therapeutic efficacy studies at least every two years for monitoring the efficacy of ACTs and the tracking of resistance through molecular markers. When ACT efficacy is confirmed to be below 90%, replacement with an effective antimalarial is recommended.

One such study was performed in Rwanda among children aged 1-14 years in 2013-2015 in Ruhuha and Masaka. The R561H mutation was observed in 7.4% of P. falciparum parasites collected in Masaka, and a low prevalence of the P574L mutation was reported in isolates collected in Masaka and Ruhuha in 2013-2015 and in Huye in 2015.

However, the presence of these mutations was not found to be associated with delayed parasite clearance and the therapeutic efficacy of ACT was confirmed at over 97% in both sites.

In 2018, another therapeutic efficacy study was conducted, the results of which are reported in this new article. The pfk13 R561H and P574L mutations were present in 12.8% (28/218) and 0.9% (2/218) of pre-treatment samples, respectively.

For the first time, this study shows that the pfk13 R561H mutation was associated with delayed parasite clearance, although the efficacy of artemether-lumefantrine remained high. Genetic analysis of pfk13 R561H mutants indicated their common ancestry and local origin in Rwanda.

The study was conducted across three sites in Rwanda (Masaka, Rukara, and Bugarama). 224 children aged between 6 months and 5 years who had a P. falciparum infection were treated with a three-day course of artemether-lumefantrine and monitored for 28 days, with weekly blood collections. 8/51 (15.7%) participants in Masaka and 12/82 (14.6%) in Rukara had detectable parasites three days post treatment, according to WHO criteria for partial resistance. The therapeutic efficacy was estimated at 94-97%.

Writing in a linked Comment, Professor Philip Rosenthal, University of California, San Francisco, USA (who was not involved in the study), says: "Recent data suggest that we are on the verge of clinically meaningful artemisinin resistance in Africa, as emerged in Southeast Asia over a decade ago. With resistant genotypes emerging and continued heavy drug pressure, we may anticipate continued selection of resistance.

Loss of artemisinin activity will in turn threaten ACT partner drugs. Loss of efficacy of key ACTs, in particular artemether-lumefantrine, the most widely used antimalarial, may have dire consequences, as occurred when chloroquine resistance led to enormous increases in malaria deaths in the late twentieth century. Although it is impossible to predict the pace of progression of drug resistance in Africa, close surveillance for genotypic and phenotypic evidence of artemisinin and partner drug resistance, with prompt replacement of failing regimens, may save many lives."
Source:


The Lancet
Journal reference:


Uwimana, A., et al. (2021) Association of Plasmodium falciparum kelch13 R561H genotypes with delayed parasite clearance in Rwanda: an open-label, single-arm, multicentre, therapeutic efficacy study. The Lancet Infectious Diseases. doi.org/10.1016/S1473-3099(21)00142-0.

IRELAND
Afforestation target under climate plan ‘currently unachievable’


Charles O'Donnell
Latest Farming News - Farming In Ireland - Farm Ireland - Agriland
April 15, 2021


The 8,000ha annual target for afforestation under the Climate Action Plan and Ag Climatise is “currently unachievable” according to one TD.

Sinn Féin TD Martin Browne was speaking after a meeting of the Joint Oireachtas Committee on Agriculture, Food and the Marine yesterday (Wednesday, April 14), where he criticized the Department of Agriculture’s handling of the forestry licencing system.

The committee was hearing from Teagasc director Prof. Gerry Boyle at the time.

In the Climate Action Plan and Ag Climatise, the expansion of forests by 8,000ha per year is cited as one of the ambitions in sequestering or absorbing carbon dioxide from the atmosphere.

However, Browne warned that this target for afforestation is under threat due to the licencing system.

“This target is currently unachievable because of the dysfunctional forestry licencing process, and poor overall management by the department which puts off new entrants to the sector,” he said.

“At this week’s meeting of the agriculture committee, I raised the matter with Prof. Gerry Boyle of Teagasc who said that, in terms of carbon storage, we are fortunate right now to be benefitting from the high-level of plantation that was undertaken 30 years ago,” Browne noted.

Boyle said that we will continue to benefit from this up to 2030 but after that we will be relying on the amount of plantation taking place right now.

The current planting, Browne highlighted, is “way below the national target and way below the levels that are needed to replenish the forest in terms of carbon sequestration”.

He argued: “This is another example of how the abandonment of the important forestry sector not only has impacts now but will have consequences in the future.

“Not alone have our foresters been let down by the manner in which the department has been overseeing forestry, but our ambitions for climate action have also been made even more difficult,” he added.

Concluding his remarks, the Tipperary TD said: “Reform of the forestry sector must speed up and be purposeful, otherwise the sector will continue to suffer right now and our climate action ambitions will be put at a disadvantage in the future”.
Dog coronavirus swept through UK at start of human pandemic



Symptoms were reported across the country by worried pet owners

By Neil Shaw
Network Content Editor
 15 APR 2021

New research suggests a coronavirus swept through the UK infecting pet dogs at the same time as the human Covid pandemic broke out.

Researchers at the University of Liverpool and the University of Lancaster say a wave of dog vomiting was likely to be strain of canine enteric coronavirus (CeCoV).

Clinical samples were taken from from 71 animals, Mail Online reports, revealing that the dogs had been infected with canine enteric coronavirus.

The outbreak lasted from December 2019 to March 2020 and peaked on February 2, according to the study.

Their main symptoms were a loss of appetite and vomiting lasting up to a week. Fewer than one per cent of the dogs died after contracting the virus.

The study, which was published in the Emerging Infectious Diseases journal, said: "In conclusion, this multidisciplinary approach enabled a rapid response to a newly described outbreak of canine gastroenteritis and identified a CeCoV as a potential cause.

"Previous CeCoV seasonality suggests further outbreaks may occur."


British Gas disgrace as workers are sacked over 'fire and rehire' pay deal

Hundreds of British Gas workers, some with decades of service, have been given their marching orders after a two week grace period to sign controversial new contacts ran out


Hundreds of British Gas engineers have lost their jobs (Image: Asadour Guzelian)

British Gas is under fire after sacking hundreds of engineers who refused new deals.

Former staff told of their fury at being axed over the firm’s “fire and rehire” contracts that cut workers’ pay.

Debbie Tinsley, an engineer for 30 years, said: “What have we done wrong? Absolutely nothing. 30 years of loyal service counts for nothing.”

One axed worker burned his contract.

Hundreds of workers, some with decades of service, have been axed after a two week grace period ran out.

Ms Tinsley posted photos of herself with her British Gas van now and 30 years ago when she joined.


Fellow engineer John Quelch said: “Today I handed my blue van after 19 years loyal service.

“It’s not how I wanted my time at British Gas to end, but because I won’t sign an inferior contract of employment I was given notice.”


David Griffith who today walked away from British Gas (Image: Supplied)

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British Gas engineer 'heartbroken' as he's fired after 17 years of frontline service

Devastated British Gas engineer 'bullied' into signing new contract at 11th hour

Another employee told The Mirror he was "heartbroken" after being told to leave despite 17 years of service.

David Griffith said he joined the company in 2004 as an apprentice and has "dedicated his life to British Gas".

“I have been with British Gas for 17 years,” he said.

“I have now officially been fired.

"To be seen as literally just a number when I have given so much more than that to a company which runs through my veins is heart-breaking," he added.

Another said he felt "bullied" into signing the deal: “All engineers were bullied into signing. The pressure just increased the longer you held out," the engineer told The Mirror.

“With each new deadline, more engineers signed up until we got to the very last deadline of 12noon yesterday.”

Yesterday’s deadline comes after months of wrangling over the “fire and rehire” deal.

Debbie Tinsley has lost her job after 30 years' service

Unions accused bosses of “bullying” British Gas’s 20,000 employees for telling them to accept reduced terms or risk the axe.

The row centres on changes to contracts that include pay cuts and increases to hours.

The GMB said the “mass sacking” coincided with British Gas suspending the sale of boiler insurance cover amid scenes of “van graveyards” from vehicles returned by the axed engineers.

Have you lost your job as a result of British Gas's restructuring? Get in touch: mirror.money.saving@mirror.co.uk

Debbie Tinsley when she started her job

Justin Bowden, GMB Regional Secretary said: “These sacked gas engineers are badly needed by customers to clear the huge backlog of missed planned annual service visits and repairs.

“There is sadly nothing in law to stop corporate bullying by companies of their own staff to sign terms they don’t accept and sacking those who don’t submit to this bullying.”


Labour leader Sir Kier Starmer said: “The whole labour movement stands in solidarity with British Gas workers.

“They’re defending themselves against the shameful practice of fire and rehire.

Debbie is among hundreds of engineers who have been sacked

“British Gas must abandon this practice.

“And the Government must outlaw it.”

Labour MP Bell Ribeiro-Addy said: “It should be illegal for companies to rip-up hard-won terms and conditions like this.”

UK
High status Roman villa discovered near Scarborough hailed as first of its kind found anywhere in world

Features central circular room and bath house - but experts puzzled why something of such grandeur would have been built in such a remote part of empire

Colin Drury
Yorkshire@colin__drury
15/4/2021

A Roman villa discovered near Scarborough, North Yorkshire
(Historic England)

The remains of a high-status Roman villa and bath house, which may be the first of its kind ever discovered in the world, have been unearthed on a building site near Scarborough in North Yorkshire.

The astonishing find was made during archaeological excavations ahead of the construction of a housing development in the small town of Eastfield.

Archaeologists say the villa’s sheer size and complexity – it features a circular central room with other rooms leading off it – almost certainly indicate a stately home or some kind of religious sanctuary.

But they remain puzzled as to why something of such grandeur would have been built at what was one of the empire’s remotest outposts.

“This type of building layout has never been seen before in Britain and could even be the first of its kind to be discovered within the whole former Roman Empire,” said Keith Emerick, inspector of ancient monuments at Historic England.

And he added: “We've spoken to a number of leading Roman academics about it and we're all trying to find a comparable site and we are struggling. So in that sense it is really significant. It's really exciting as well".


Such is its importance that the layout of the new housing estate has now been redesigned by Keepmoat Homes to preserve the remains.

Karl Battersby, corporate director of business and environmental services at North Yorkshire County Council, said: “This is a remarkable discovery…

“Work by North Yorkshire archaeologists has already established the buildings were designed by the highest-quality architects in Northern Europe in the era and constructed by the finest craftsmen.

“There will be further work on the finds and environmental samples to try to establish exactly what this enigmatic site was and why it was created so far from other Roman centres.
Republicans turn to the socialism playbook on Biden's infrastructure bill, labeling anything other than roads and bridges as 'Soviet'

© Alex Wroblewski/Getty Images House Republicans including Reps. Steve Scalise, Jim Jordan, and Matt Gaetz address reporters during a news conference. Alex Wroblewski/Getty Images  
GYM JORDAN POSING ALL HE NEEDS IS HIS SUPERHERO CAPE

While the parties disagree on infrastructure, the GOP is making false statements and calling the other side "socialist."

GOP leadership insists less than 6% of Biden's plan goes to roads and bridges, ignoring EV investments.

House Minority Whip Steve Scalise on Wednesday dismissed the bill as "Soviet-style infrastructure."


SCALISE SUFFERS DEMENTIA FROM LEAD POISONING


Amid arguments over the definition of infrastructure, Republicans are making false statements about President Joe Biden's $2 trillion infrastructure bill and labeling the Democratic effort as "socialist."

The GOP's longstanding strategy of attaching the socialism label to any Democratic policy proposal is not new. It's been the go-to move for the party ever since the rise of the Tea Party in the 2010 midterms, and became integral to former President Donald Trump's losing campaign in 2020.

However, many of the recent socialism critiques of the Biden plan are misleading, particularly in how Republicans have been quibbling over what constitutes infrastructure.

House Minority Whip Steve Scalise of Louisiana during a Wednesday news conference compared the American Jobs Plan to the Soviet Union.




"Frankly, when you look at the socialist agenda being pushed Speaker Pelosi and President Biden, people are turning away from it," Scalise said. "They're talking about an infrastructure bill. It's Soviet-style infrastructure, what they're talking about.

"Over 90% of the bill they're proposing has nothing to do with roads and bridges," he continued. "People would expect, if you're gonna have a $2 trillion bill, that it would be all about roads and bridges. Theirs is not. It's a lot of Green New Deal, expanding the role of the federal government."

Scalise's office did not respond to Insider's request for comment about what he meant by invoking the USSR, which fell in 1991.





A recent Morning Consult/Politico poll shows most Republican voters actually like several parts of the Biden infrastructure plan, including parts that are not traditionally defined as strictly infrastructure, such as the expanded child tax credit and increased low-income housing.

But both Mitch McConnell and Kevin McCarthy, the Senate and House minority leaders, respectively, have criticized the plan for earmarking less than 6% of its spending to roads and bridges.

Scalise too, with his "over 90%" comment, omitted the $174 billion dedicated to expanding the availability of electric vehicles, which use roads and bridges. Much of the spending in the bill is also left to the discretion of states and local authorities, which does not constitute "expanding the role of the federal government" to the extent Scalise indicated.



McCarthy - who was not in attendance at Wednesday's House GOP leadership press conference - recently dismissed the bill as a "kitchen sink of wasteful progressive demands" while ignoring major items with bipartisan support, such as subsidizing broadband internet access for rural communities.

Outside of the beltway, South Dakota Gov. Kristi Noem was mocked online for her comments on Fox News, where she wondered aloud why items like "housing and pipes and different initiatives" were included in the bill despite falling well within a general definition of infrastructure.

These claims have taken over the GOP messaging in place of a more viable negotiating posture, which began to emerge on Wednesday when Republican Sen. Shelly Moore Capito of West Virginia floated the idea of cutting the bill by more than half to settle around a "sweet spot" figure of $600 billion to $800 billion.

To counter the GOP talking points, the White House released its "infrastructure report cards" on Tuesday to highlight and quantify areas of disrepair state by state.

The home states of Scalise, McCarthy, and Noem received a D-plus and two C-minuses, respectively.






CRIMINAL CAPITALI$M
CANADA
Courier giant DHL padded own pockets with 'hidden fees,' class action alleges

Erica Johnson 
CBC
4/15/2021

© Wolfgang Rattay/Reuters A DHL worker delivers packages in Bonn, Germany, in December 2020. A proposed class-action lawsuit filed in a B.C. court alleges the courier giant requires some customers to pay extra fees by making 'false, misleading and…

A Vancouver law firm is going to court against DHL, alleging the courier giant profited by misrepresenting some of the fees it charges customers.

According to a proposed class action filed in B.C. Supreme Court last week, the North American operations for DHL's express courier delivery service have been requiring customers to pay extra fees to receive their parcels by making claims that are "false, misleading and deceptive."

Court documents claim that DHL leads customers to believe that fees they must pay once a parcel arrives from out of the country are government import and tax fees — when a large portion of them are actually going to DHL as a "processing fee."

"I don't think anybody has any difficulty paying for taxes and duty that's properly owing and payable," said the Vancouver lawyer behind the class action, Scott Stanley.

"It's when there's additional fees that aren't clear where people get their backs up."

The lead plaintiff in the case is Gayle Vallance — a retired school teacher from Fernie, B.C. Court documents say Vallance ordered two books on fabric weaving from the U.K. in February — paying DHL $98 for shipping.

Nine days later, she was advised by DHL that her shipment had arrived in Canada, but she had to pay $33.16 in "duties and taxes" before it would be delivered.

"At all material times prior to payment, DHL represented to the Plaintiff that the fee being charged on her shipment was for duties and taxes," say court documents.

The claim says Vallance only learned "after numerous inquiries to DHL" that $17 of that fee went to the courier company as a processing fee.
Hidden fees?

At issue in the proposed class action is how transparent the company is about the fees it charges customers.

Court documents say that DHL usually sends an email to customers with the subject line "IMPORT DUTY/TAX PAYMENT," advising them to pay up or risk losing their parcel.

The case says people paid the fees, believing them to be for duties and taxes. "In reality," says the claim, the fees charged "included a DHL processing or brokerage fee."

"This was a hidden fee."


Stanley says customers are "already paying DHL to deliver these packages — they're not doing this for free. And this seems to be an extra charge that we say isn't clearly described for the consumer."

The proposed lawsuit says DHL conducted an "unlawful scheme" that breaches a section of the federal Competition Act and "constituted an unfair business practice contrary to consumer protection legislation" across Canada.

"DHL was unjustly enriched by its conduct," says the civil claim.

Go Public recently reported the story of a Calgary woman who — like Vallance — was surprised to learn that a chunk of the "duty and taxes" she believed she owed the government for importing a soccer jersey for her son was actually going to DHL as a processing fee.

After her story was published, Go Public heard from dozens of other customers who felt they, too, were misled by notifications from DHL that suggested all the additional fees — on top of the shipping already paid — were government charges.

According to the company's website, DHL is the biggest international courier company in the world, headquartered in Germany. With more than 380,000 employees, it serves more than 220 countries and territories and delivers almost 1.6 billion parcels a year.

DHL has yet to file a statement of defence, and the class action has not been certified — which determines whether it moves forward.

When contacted for a response, DHL spokesperson Daniel McGrath said the company does not comment "on active legal matters." When contacted about our previous Go Public story about alleged hidden fees, DHL spokesperson Hazel Valencia said information about the company's processing fee "is available on the DHL website."
Who is included in proposed class action?

Although filed in B.C., the proposed class action represents all residents of Canada who have paid DHL fees.

It seeks compensation for people who "sustained loss and damage" by paying DHL's processing or brokerage fees.

It also seeks payment for the "stress and anxiety" caused by spending time investigating the fees charged by DHL, communicating with DHL and reporting the company's "unlawful conduct" to the Better Business Bureau and other consumer protection organizations.

The proposed class action is similar to one filed on behalf of Ontario residents against United Parcel Service in 2007. It, too, centred on brokerage fees that were charged to customers — allegedly without their knowledge. The case was settled in 2018.


Go Public is an investigative news segment on CBC-TV, radio and the web.

We tell your stories, shed light on wrongdoing and hold the powers that be accountable.

If you have a story in the public interest, or if you're an insider with information, contact GoPublic@cbc.ca with your name, contact information and a brief summary. All emails are confidential until you decide to Go Public.

Read more stories by Go Public.
Biden going ahead with big Trump 
fighter-jet sale to UAE

MEET THE NEW BOSS, 
SAME AS THE OLD BOSS



The Biden administration says it will go ahead with a big Trump administration sale of jet fighters and advanced armed drones to the United Arab Emirates, over objections from Democrats and some others that the Gulf country is fueling conflicts around the Middle East.

The administration initially had paused some Trump-era arms sales to Gulf countries for review, including a $23 billion transfer of F-35 combat aircraft, M-Q9 drones and related weapons to the United Arab Emirates.


U.S. officials argue that the nation benefits from having strong strategic partners with interoperable defence systems. The sales also benefit American arms manufacturers. The United States remains the world's top arms exporter, with half of its sales between 2015 and 2019 going to the Middle East, according to the Stockholm International Peace Research Institute.



A State Department official, speaking Wednesday on condition of anonymity to discuss the sale, said the U.S. would be working with the UAE in the years leading up to delivery to try to make sure the arms are used in accordance with human rights standards and the laws of war.

Opponents to the UAE arms deal accuse the Gulf nation of harmful interference in conflicts in the Middle East, including rights abuses as a combatant in the war in Yemen, and diverting weapons to militias in Yemen and Libya.

Senate Democrats had tried and failed to muster support in the Senate for blocking the deal, announced by the Trump administration in its final months. Some arms-trade experts, including William Hartung of the Center for International Policy, had urged the Biden administration not to go ahead with the deal, saying it contradicted Biden’s pledge of a foreign policy in line with human rights and American values.

Ellen Knickmeyer, 
The Associated Press
4/14/2021



Amazon claims social network Parler trying to conceal owners


SEATTLE — Amazon has accused Parler, the social network known as a conservative alternative to Twitter, of trying to conceal its ownership amid a legal dispute between Amazon and Parler stemming from the U.S. Capitol riots.

Angelo Calfo, an attorney representing Parler, disputed Amazon's claim and argued that the burden was on Amazon to prove who owns Parler, The Seattle Times reported Tuesday.

“This is a ginned-up effort to try to throw mud at Parler, when Parler has been completely clear about its ownership,” Calfo said.

The legal dispute began in January after Amazon Web Services, the Seattle company's cloud-computing division, stopped working with Parler, temporarily wiping the platform off the internet. Amazon said Parler was unable to moderate a rise in violent content before, during and after the January insurrection.

Parler asked a federal judge in Seattle to force Amazon to reinstate it on the web. That effort failed. Parler then filed a new complaint over the same argument against Amazon in King County Superior Court.

Amazon immediately dragged the case back into federal court, where it was assigned the same judge who had ruled against Parler. Parler objected to the move, arguing the court has no jurisdiction over the case since both Amazon and Parler are incorporated in Delaware.

Amazon was originally incorporated in Seattle but reincorporated in Delaware in 1996, the Times reported.

Amazon said Parler has not shown it is a Delaware-based company, in part because it has not disclosed its owner.

Parler did share information about its corporate structure with Amazon at the start of its lawsuit, Calfo said. But the documents were sealed to protect the identities of the parties due to threats of violence.

Republican political donor Rebekah Mercer has confirmed she helped bankroll the site and has emerged in recent months as the network's shadow executive after its founder John Matze was ousted as CEO in February. But it remains unclear if she controls the social network. If so, the case against Amazon will likely be heard in front of a Seattle judge.

Parler is now online again, hosted by SkySilk, a Los Angeles-based cloud-computing company.

The Associated Press

Toshiba's CEO has stepped down but board members planned to oust him before the controversy over a $20 billion buyout bid, sources say


insider@insider.com (Reuters,Kate Duffy) 
4/14/2021
REUTERS/Issei Kato Toshiba Corp chief executive Nobuaki Kurumatani. 

REUTERS/Issei Kato

Toshiba board members planned to replace Nobuaki Kurumatani before the buyout bid, sources said.
Kurumatani resigned from Toshiba on Wednesday. Chairman Satoshi Tsunakawa will replace him.
The board chairman Osamu Nagayama went to a meeting "to fire" him, one of the sources told Reuters.

Toshiba board members planned to oust CEO Nobuaki Kurumatani before CVC Capital Partners launched a $20 billion buyout bid last week, sources told Reuters.

Kurumatani on Wednesday resigned from Toshiba. Chairman Satoshi Tsunakawa, who led the company beforehand, will replace him.

The board told Kurumatani the day before the offer was announced that they would replace him, sources who didn't want to be identified because of the sensitivity of the issue told Reuters.

On the subject of Kurumatani stepping down, Toshiba told Insider: "It is a resignation in the middle of the CEO's term of office, which is unusual, but the resignation is decided by Mr. Kurumatani himself and should be respected."

Two members of Toshiba Corp's nomination committee, including board chairman Osamu Nagayama, met Kurumatani, himself a former CVC executive, before the buyout bid and told him they were looking for a new CEO, sources told Reuters.

Although the board hadn't formally started the process of replacing Kurumatani, the plan was already in motion, Reuters reported. Nagayama, who also heads the nomination committee, went to the meeting "to fire" him, one of the sources said.

Reuters reported that Kurumatani then informed them of the European private equity firm's plan to take Toshiba private. A day later, the Japanese conglomerate announced it had received the offer, two sources added.

The events of the meeting show how Kurumatani's tenure was undone by his flagging popularity even before the offer was announced. It marked the culmination of deepening discord between Kurumatani and activist shareholders, who had raised concern over what they said were governance issues.

The plan to remove him appears to have accelerated after the meeting on April 6 at Toshiba's headquarters in Tokyo. Toshiba on Wednesday said Kurumatani was stepping down after some three years as CEO.

Support for him both within the company and among investors had eroded, a person briefed on the matter said.

"A survey of managers at Toshiba showed low support for Kurumatani," the person who was briefed said. There was "deep distrust" of him among shareholders, they added.

Toshiba said Kurumatani was stepping down to "recharge" after achieving his plan to revive the conglomerate that had been weakened by an accounting scandal.

Reuters was not immediately able to reach Kurumatani for comment about plans to have him replaced. Toshiba said it couldn't comment on speculation. Nagayama declined to comment. A representative for CVC Japan declined to comment.
Read the original article on Business Insider