Day: June 16, 2018

Kenya’s President Mandates Lifestyle Audit for Public Servants

Kenya’s President Uhuru Kenyatta has intensified his war on graft by announcing that all public servants will undergo a compulsory lifestyle audit to account for their sources of wealth.

This latest announcement follows financial scandals that have rocked the country with revelations that millions of dollars were lost in various government agencies through corrupt deals that involved government officials.

Kenyatta offered himself to be the first leader to undergo the audit that seeks to identify corrupt public officials, saying the lifestyle audits would control the misuse of public funds. He said public servants would be required to explain their sources of wealth with an aim of weeding out those found to have plundered government funds.

“You have to tell us, this is the house you have, this is your salary, how were you able to afford it? This car that you bought, (don’t try to put it under your wife’s name or son’s name, we will still know it is yours), where did you get it? You must explain and I will be the first person to undergo the lifestyle audit,” he said.

Scandals uncovered

In the past month, various corruption scandals involving tenders and suppliers in government agencies have been unearthed. The corruption scandals as revealed have exposed the theft of hundreds of millions of shillings by state officials from several government bodies.

So far, more than 40 government officials, including businesspeople, have been arrested over the recent  scandals.

Kenyatta has continued to express his frustration about the graft, which seems to have spiraled out of control since he came into office in 2013.

“This issue of people stealing what belongs to Kenyans, I swear to God it has to come to an end in Kenya,” Kenyatta said.

Establishing accountability

The president said the lifestyle audit will be key among other measures also put in place by the government to curb the vice.

Earlier in the week, Kenyatta issued an executive order requiring all government entities and publicly owned institutions to publish full details of tenders and awards beginning July 1, 2018.

“For example, if this road is being built, we want to know: Who won the tender for the construction? How much was the tender? Who came in second and third? Why was the first person awarded instead of these two? All these reasons, we need to know. Kenyans need to know so that it is out there, that this company was awarded this tender, belongs to a certain person, these are the directors, these are the shareholders. There will be no more hiding,” he said.

On June 1, Kenyatta ordered that all heads of procurement and accounting units be vetted again. He said the vetting would include subjecting the officers to polygraph tests to determine integrity.

Kenya scored 28 points out of 100 on the 2017 Corruption Perceptions Index reported by Transparency International. The Corruption Index in Kenya averaged 22.62 points from 1996 until 2017.

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Fire Again Devastates Scotland’s Mackintosh Building

A major fire has torn through one of Scotland’s architectural gems, the Mackintosh building at the Glasgow School of Art, for the second time in four years.

More than 120 firefighters fought the blaze during the night as it gutted the 1909 building and spread to a theater and a nearby nightclub. No casualties were reported.

“The extent of the damage is very severe,” Peter Heath, deputy assistant chief officer of the Scottish Fire and Rescue Service, told reporters at the scene in Glasgow city center Saturday morning.

The fire “has reached from the ground floor right through to the roof,” he said.

By morning the fire was under control, but smoke was still rising from the building as firefighters sprayed it from tall ladders. Heath said the theater was still on fire and its roof had partly collapsed, but the blaze was no longer spreading.

The Mackintosh building had been scheduled to reopen next year after millions of pounds in restoration works following a fire in May 2014.

“My first thoughts tonight are for the safety of people, but my heart also breaks for Glasgow’s beloved School of Art,” Scottish First Minister Nicola Sturgeon said on Twitter.

The Mackintosh building is named after its architect, Charles Rennie Mackintosh, Scotland’s most influential designer.

The School of Art’s website says the building “heralded the birth of a new style in 20th century European architecture.”

Heath said fire crews were called about 20 minutes before midnight Friday, and by the time they arrived fire had spread to the whole building.

The area was quickly evacuated and cordoned off. It remained inaccessible to the public Saturday morning.

“This is a devastating loss for Glasgow, absolutely devastating,” Heath said.

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California Moves to Clear Coffee of Cancer-Risk Stigma

California officials, having concluded coffee drinking is not a risky pastime, are proposing a regulation that will essentially tell consumers of America’s favorite beverage they can drink up without fear.

The unprecedented action Friday by the Office of Environmental Health Hazard Assessment to propose a regulation to clear coffee of the stigma that it could pose a toxic risk followed a review of more than 1,000 studies published this week by the World Health Organization that found inadequate evidence that coffee causes cancer.

The state agency implements a law passed by voters in 1986 that requires warnings of chemicals known to cause cancer and birth defects. One of those chemicals is acrylamide, which is found in many things and is a byproduct of coffee roasting and brewing present in every cup of joe.

Win for coffee industry 

If the regulation is adopted, it would be a huge win for the coffee industry, which faces potentially massive civil penalties after recently losing an 8-year-old lawsuit in Los Angeles Superior Court that could require scary warnings on all coffee packaging sold in California.

Judge Elihu Berle found that Starbucks and other coffee roasters and retailers had failed to show that benefits from drinking coffee outweighed any cancer risks. He had previously ruled the companies hadn’t shown the threat from the chemical was insignificant.

The state’s action rejects that ruling.

“The proposed regulation would state that drinking coffee does not pose a significant cancer risk, despite the presence of chemicals created during the roasting and brewing process that are listed under Proposition 65 as known carcinogens,” the agency said in a statement. “The proposed regulation is based on extensive scientific evidence that drinking coffee has not been shown to increase the risk of cancer and may reduce the risk of some types of cancer.”

​Unprecedented move

Attorney Raphael Metzger, who won the court case on behalf of The Council for Education and Research on Toxics, said he was shocked the agency would move to nullify the court decision and undermine its own report more than a decade ago that drinking even small amounts of coffee resulted in a significant cancer risk.

“The takeaway is that the state is proposing a rule contrary to its own scientific conclusion. That’s unprecedented and bad,” Metzger said. “The whole thing stinks to high hell.”

The National Coffee Association had no comment on the proposed change. In the past, the organization has said coffee has health benefits and that the lawsuit made a mockery of the state law intended to protect people from toxics.

Scientific evidence on coffee has gone back and forth over many years, but concerns have eased recently about possible dangers, with some studies finding health benefits.

Big Coffee didn’t deny that acrylamide was found in the coffee, but argued it was only found at low levels and was outweighed by other benefits such as antioxidants that reduce cancer risk.

Congress

The state agency’s action comes about a week after bipartisan bills were introduced in both houses of Congress to require science-based criteria for labels on food and other products. One of the sponsors, Rep. Kurt Schrader, D-Oregon, alluded to the California coffee lawsuit as an example of misleading warnings.

“When we have mandatory cancer warnings on a cup of coffee, something has gone seriously wrong with the process,” Schrader said in a news release. “We now have so many warnings unrelated to the actual health risk posed to consumers, that most people just ignore them.”

The lawsuit against Starbucks and 90 companies was brought by the tiny nonprofit under a law that allows private citizens, advocacy groups and attorneys to sue on behalf of the state and collect a portion of civil penalties for failure to provide warnings.

The Safe Drinking Water and Toxic Enforcement Act, better known as Proposition 65, requires warning labels for about 900 chemicals known to cause cancer or birth defects.

The law has been credited with reducing cancer-causing chemicals, but it has been criticized for leading to quick settlement shakedowns and vague warnings that are often ignored.

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Technology Makes Soccer Training More Efficient

Among the millions of fans watching the World Cup are amateur football players who have dreams of being as good as their heroes, Now, they have a new way to compare their performance to the best professionals in the game, so they can build their skills. The help comes from a new wearable device that uses GPS and other sensors to track their movements. Faiza Elmasry has the story. Faith Lapidus narrates.

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Russia Hopes to Present ‘Fresh Face’ for World Cup Amid Global Isolation

The phrase ‘don’t mix politics and sport’ is often heard in Moscow these days. But it’s difficult to escape the unique circumstances of this year’s World Cup. As the tournament gets underway in Russia, the country remains subject to a range of international sanctions over its annexation of Crimea and invasion of Ukraine. As Henry Ridgwell reports from Moscow, Russian President Vladimir Putin sees the World Cup as an opportunity to break that isolation and present a different image of Russia.

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World Bank: Remittance Flows Rising After Years of Decline

After two consecutive years of decline, remittances, the money migrant workers send home, increased in 2017 according to figures released by the World Bank. Remittances are a significant financial contribution to the well-being of families of migrant workers and to the sustainable development of their countries of origin. The U.N. recognizes their importance every year on June 16, designated International Day of Family Remittances. VOA’s Cristina Caicedo Smit reports on this vital lifeline.

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Theranos CEO: Wunderkind to Federal Indictment

Federal prosecutors have indicted Elizabeth Holmes on criminal fraud charges for allegedly defrauding investors, doctors and the public as the head of the once-heralded blood-testing startup Theranos. Federal prosecutors also brought charges against the company’s former second-in-command.

Holmes, who was once considered a wunderkind of Silicon Valley, and her former Chief Operating Officer Ramesh Balwani, are charged with two counts conspiracy to commit wire fraud and nine counts of wire fraud, the U.S. Attorney’s Office for the Northern District of California said late Friday. If convicted, they could face prison sentences that would keep them behind bars for the rest of their lives, and total fines of $2.75 million each.

Technology a fraud

Prosecutors allege that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos’ blood-testing technologies. Holmes, 34, founded Theranos in Palo Alto, California, in 2003, pitching its technology as a cheaper way to run dozens of blood tests. Once considered the nation’s youngest female billionaire, Holmes said she was inspired to start the company in response to her fear of needles.

But an investigation by The Wall Street Journal two years ago found that Theranos’ technology was a fraud, and that the company was using routine blood-testing equipment for the vast majority of its tests. The story raised concerns about the accuracy of Theranos’ blood testing technology, which put patients at risk of having conditions either misdiagnosed or ignored.

“CEO Elizabeth Holmes and COO Sunny Balwani not only defrauded investors, but also consumers who trusted and relied upon their allegedly-revolutionary blood-testing technology,” Acting U.S. Attorney Alex Tse said in a statement.

SEC charges

The Securities and Exchange Commission brought civil fraud charges against Holmes and Balwani three months ago. Holmes settled with the SEC, agreeing to pay $500,000 in fines and penalties. Balwani, 53, is fighting the charges.

As the charges were announced Friday, Theranos said Holmes would step down as CEO of the company and its general counsel, David Taylor, would become the company’s next CEO. Theranos laid off most of its staff earlier this year and is widely expected to file for bankruptcy. Holmes remains the company’s chairman.

The company did not immediately respond to a message seeking comment on Friday’s indictments.

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