Chad president makes New Year peace plea to rebels.

AFP w/editing by WNJ
2 January 2010

Chad's President Idriss Deby Itno, called Friday on armed forces in the troubled central African nation to lay down their weapons, saying constant conflict was hindering the country's development.

"War is not the solution," the president in his New Year address.

"Today, conditions are more than ripe for everyone to satisfy their political ambitions through the ballot box."

In 2005, Deby pushed for a constitutional amendment that allowed him to run for a 3rd term. Following the amendment, numerous members of the Chadian army and opposition politicians defected and joined the ranks of armed groups opposed to the Chadian government.

The landlocked nation is rich in oil but has been blighted by violence and governmental instability and corruption.

In February last year, anti-Chadian rebels swept across the whole of southern Chad to N'Djamena in only a week and were only defeated with French military-backing.

But President Deby, who took power in a 1990 military coup and has since been re-elected, insisted Friday that the country's rebel movements had no future and accused them of acting as "a brake on the country's development".

"Stop, stop, stop plunging Chadian families into mourning and destroying our country," he urged in his latest message to anti-government forces.

He said there had been repeated efforts to end the fighting and help Chad go forward in harmony with its neighbours, in particular Sudan where several rebel groups have a rear base.

Sudan and Chad started a fresh bid last week to normalise relations.

Both sides agreed at high-level talks in Khartoum to meet again to take steps to stop cross-border attacks from each side, according to Sudanese presidential adviser Ghaze Salaheddin.

Improved ties between the two countries would also help bring peace to war-torn Darfur, where Chad has supported militias that oppose the Sudanese government and vice-versa.

Sudan Islamist Party (PCP) led by al-Turabi names presidential candidate

2 January 2010

Leading Islamist dissident Sheikh Hassan al-Turabi said on Saturday that his Popular Congress Party (PCP) has nominated its deputy chief Abdullah Deng Nhial, a Dinka southerner, to run for the Sudanese presidency in April's elections. Mr. Nhial was a professor in Juba University in 1985 then a minister of Guidance and Endowments following the 1989 coup; a minister for peace and reconstruction; the White Nile governor in 1994 before siding with Turabi in his 1999 major fallout with Bashir.

Mr. Nhial is the second candidate announced so far against President Omar al-Bashir, who has ruled Sudan since a 1989 coup as an ally of the National Islamic Front (NIF), which Mr. al-Turabi founded. Though he denies it, Mr. al-Turabi is accused of having ties to the JEM rebel group. Some have even accused the JEM of being the armed wing of the PCP. Mr. Khalil Ibrahim, the leader of the JEM, has historical ties to al-Turabi in the NIF and is said to be a PCP member.

Mr. Abdullah Ali Ibrahim, a university professor, has said he will also contest the elections as an independent.

Other candidates are expected to put themselves forward ahead of the January 22 registration deadline.

The Sudan People's Liberation Movement (SPLM), the current ruling party in South Sudan, has yet to officially confirm whether or not it will field a candidate, but is expected to do so this week.

Party leader Gen. Salva Kiir Mayardit, a Dinka southerner, who is currently the Sudanese Vice President and President of semi-autonomous South Sudan, has previously said he would run in the national presidential election.

African Elections in 2010.

Editor's Note: This is very much a work in progress.

Burkina Faso

November – Presidential


Burundi

21 May - Local

28 June – Presidential, 1st round

23 July – Parliamentary

26 July - Presidential runoff

28 July - Senatorial


Central African Republic

16 May - Parliamentary, local, Presidential 1st round


Egypt

May - Legislative

November – Parliamentary


Ethiopia

23 May - Parliamentary and regional assembly


Ghana

August - Local government


Guinea

27 June – Presidential 1st round

? - Parliamentary


Ivory Coast

? – Presidential


Lesotho

April - Local


Madagascar

20 March – Parliamentary

October – Presidential


Mauritania

November - Parliamentary and municipal elections


Mauritus

July – Parliamentary

October - Municipal

December -Village Council


Namibia

November – Regional, local and indirect Senate


Rwanda

9 August – Presidential


Sao Tome and Principe

July - Parliamentary, regional and municipal

August - Regional


Somaliland

January – Presidential

September - Parliament


Sudan

5 to 12 April –Presidential, parliamentary, gubernatorial and state assembly

July - Darfurian amalgamation referendum


Tanzania

October - Presidential, Parliamentary and local


Togo

28 February –Presidential


Tunisia

May - Municipal


Uganda

March - Local

Chevron Works On Joint Angola:Congo-Brazzaville Oil Zone For 2012 Output

Chevron Corp. (CVX) is currently working on a plan to produce from a field shared between Angola and the Republic of Congo in 2012, though start-up will depend on a revenue-sharing agreement between the two countries, a top company official said this month.

In an interview during a visit at the Chevron compound in Angola's Cabinda enclave, John Baltz, Chevron's Southern Africa production manager, said a project team from the U.S. major is "working on a development plan to start production in two years" from the Lianzi field.

The field is located in a joint-cooperative zone shared by Angola and the Republic of Congo, which is also called Congo-Brazzaville.

Front-end engineering and design started last year. But revenue sharing agreement is still in "negotiations [between the two countries]. It is the biggest challenge," Baltz said.

The news come after Angolan oil minister Jose Maria Botelho de Vasconcelos visited Brazzaville mid-December to discuss joint-exploration in the cooperation zone, according to state-news agency Angola Press.

U.K. independent oil company Soco International PLC (SIA.LN) said this summer it intends to benefit from exploration work undertaken by Chevron in a field shared by Angola and Congo.

By Benoit Faucon,
Dow Jones Newswires;
+44-20-7842-9266;
benoit.faucon@ dowjones.com

Sri Lanka averted US move to evacuate LTTE leadership.

The Island
30 December 2009
by Shamindra Ferdinando

About two months before the final battle with the LTTE on the banks of the Nanthikadal lagoon in May, the United States had offered to evacuate top LTTE leaders and their families.

The unprecedented proposal had been made by the then US Ambassador in Colombo Robert Blake after the Co-Chairs to the Sri Lankan peace process, spearheaded by the Norwegians agreed that the LTTE could no longer halt the army advance.

Although a section of the press in March 2009 speculated that the US was exploring the possibility of evacuating civilians trapped in the war zone, it can now be revealed that the actual move was to evacuate the LTTE leadership. Well informed sources told The Island that the US plan envisaged taking over 100 persons, including Velupillai Prabhakaran, Sea Tiger leader Soosai, Intelligence Wing leader Pottu Amman and their families.

Sources said that Ambassador Blake went to extent of calling US experts to Colombo to work out modalities regarding the deployment of US assets to evacuate the LTTE leadership discussed the possibility of deploying US vessels to carry out the evacuation.

Sources said that an aircraft from Hawaii carrying US experts touched down at the Bandaranaike International Airport following a dispute over formalities regarding landing rights. Sources said that the US embassy had alerted the government of the impending arrival of the aircraft only after it was airborne.

Responding to The Island queries, sources said that at one point the Sri Lankan government had suggested that Ambassador Blake should also consult New Delhi regarding the controversial evacuation plans.

While secret negotiations were taking place, the Army had advanced slowly but steadily into the remaining LTTE-held territory in the Mullaitivu district. By the second week of March, a multi-pronged ground offensive was eating into some 45 square km territory under LTTE control. At the beginning of the Sri Lankan offensive in September 2006, the LTTE had about 15,000 square km under its control.

Sources said that government forces could have finished off the Tigers earlier had the army carried out an all out attack regardless of civilian losses. In fact, UN Chief Ban-ki-moon had inquired why the government did not carry out an amphibious assault on the Mullaitivu beach to conclude the offensive as he flew over the Vanni battlefields.

Sources said that much talked about UN bid to save about 50 LTTE leaders and their families was made hot on heels of the failed US attempt. Sources said that had international operations to evacuate the LTTE leadership succeeded, Sri Lanka would have faced an extremely difficult situation and the so-called Eelam government in exile would not be a joke had they escaped.

The US and the UN had intervened on behalf of the influential Tamil Diaspora which continued to play a pivotal role even in the post-LTTE era. Sources said that those pushing US and western capitals were not only Sri Lankan Tamils but influential groups from South Africa and South East Asian countries.

After Sri Lanka had successfully thwarted international intervention, the LTTE on its own tried to use one of its vessels to evacuate Prabhakaran and his family, the sources revealed.

Navy Commander Vice Admiral Thisara Samarasinghe last Monday (Dec 21) said that a 90-metre ship seized by a special SLN team was believed to have been involved in a last ditch attempt to rescue Prabhakaran. He said that a light chopper launched from the ship could have picked Prabhakaran as the army advanced on the last LTTE stronghold.

Fearing an LTTE operation, the navy deployed the bulk of its assets on the north-eastern waters while the SLAF stationed a pair of jets at the China Bay air base to meet any eventuality.

Once the 55 and 59 Divisions linked-up on the Mullaitivu beach, it was only a matter of time before the Tigers collapsed on the Vanni front.

Chinese navy seeks to establish overseas base off Somalia in Gulf of Aden.

By Christopher Bodeen
Associated Press
Dec 30, 2009

Editor's Note: This base, coupled with the naval base being built on the southern tip of Sri Lanka, shows China's aggressive moves to secure its primary energy transport route for energy, particularly from its ally Iran.

China needs a permanent naval base overseas to resupply its ships contributing to the multinational anti-piracy flotilla in the Gulf of Aden off Somalia, a prominent Chinese naval researcher was quoted as saying Wednesday.

The suggestion marks a further step away from China’s avowed policy of not maintaining foreign military bases or alliances. Beijing says a more active naval presence abroad is necessary to protect sea lanes through which its vital foreign trade and natural resources travel.

The bases idea was floated in a state radio interview with Yin Zhuo, a frequent navy spokesman on matters involving interactions with foreign navies. Yin offered no suggestions on where a base would be located and said all such decisions will be made by top military leaders.

“However, I believe that a relatively stable, relatively solid base for resupply and repair would be appropriate,” said Yin, a rear admiral and director of the naval center on information research.

A transcript appeared on the Defense Ministry’s official Web site on Wednesday.

Such a base would provide a steady source of fresh fruit, vegetables and water, along with facilities for communications, ship repair, rest and recreation, and medical evacuation of injured personnel, Yin said.

China deployed its first three-ship squadron to patrol off the Somali coast last December in response to rising pirate attacks on civilian ships from China and other countries.

Yin said the first Chinese mission was at sea for four months without calling at any regional ports, but subsequent squadrons had visited them with increasing frequency. He said he anticipated future port calls in Djibouti on the horn of Africa, where both the U.S. and France have major naval bases.

While foreign observers have made little of the presence of the Chinese — who have seen little action against actual pirates — leaders in Beijing are highly sensitive to perceptions that China is becoming an expansionist power.

Yin said the Chinese presence had been welcomed by other members of the multinational force. He predicted there would be no opposition to establishing a permanent base.

“I believe that regional countries and countries taking part in the anti-piracy patrols would understand if China established a relatively permanent coastal supply base,” Yin said.

Lukoil, Statoil Sign Initial Pact for Iraq's West Qurna Phase 2.

by Hassan Hafidh
Dow Jones Newswires
12/29/2009
URL: http://www.rigzone.com/news/article.asp?a_id=84757

Russia's Lukoil Holdings and Norway's Statoil ASA Tuesday signed an initial deal to develop the Iraqi supergiant West Qurna Phase 2 oil field, 16 days after the closure of the country's second postwar licensing auction, Iraqi oil ministry officials said.

The two companies won the field by pledging to lift crude oil production to 1.8 million barrels a day for a fee of $1.15 a barrel. According to a separate statement from Statoil Tuesday, the companies have adjusted their shares in the field, with Statoil raising its stake to 25% of the field's development rights from 15% previously, and Lukoil's stake dropping to 75% from 85%.

The initial deal for West Qurna Phase 2 was signed in Baghdad by Iraq's deputy oil minister Abdul Kareem al-Luaby with executives from both companies.

The deal still needs the approval of the Iraqi cabinet before its final signature, the officials said. "We hope that the agreement will be ratified by the cabinet as soon as possible," Luaby said.

"This contract is a major step toward developing our joint activities in Iraq," Dmitry Timoshenko, vice president for business development at Lukoil told reporters in Baghdad, speaking through an Arabic interpreter. "We hope to start work in the field as soon as possible," he added.

Lukoil president Vagit Alekperov told a Russian television service this week that Lukoil aims to invest $4.5 billion in the West Qurna Phase 2 project in the next three to five years. He said he believed that the project would be profitable and would have a rate of return of 15%.

Iraq awarded this year 10 oil fields contracts to international oil companies in two postwar licensing auctions. If these contracts were implemented, they would quadruple Iraq's crude oil production to nearly 11 million barrels a day, which could match or even exceeds that of the world's largest oil exporter, Saudi Arabia.

Supergiant West Qurna Phase 2, discovered in 1973, holds some 12.8 billion barrels of proven crude oil reserves. It is located in the Basra governorate, some 65 kilometers northwest of the city of Basra in southern Iraq.

Lukoil, Russia's second largest oil company in terms of output, signed a contract to develop the field with the regime of Iraqi leader Saddam Hussein but the deal was annulled in 2002--a year before the U.S.-led invasion of Iraq.

Iraq oil contracts go to Angola's Sonangol.

BBC News
30 December 2009

The Angolan state-owned oil company, Sonangol, has signed two initial oilfield deals in Iraq.

The two, the Qayara and Najmah oilfields, are in Nineveh province, known as one of the most dangerous regions of the country.

There are frequent insurgencies there, as Sunni Islamic militants and al-Qaeda are both active.

Sonangol will be paid between $5 and $6 a barrel, one of the highest fees awarded in Iraq's oil deals.

The two fields combined contain an estimated 1.7 billion barrels of oil.

The deals were awarded in Iraq's second bidding round for oil contracts, held earlier this month. Contracts went to companies including Shell, CNPC and Lukoil.

Risky venture

The high fees for Sonangol reflect the risks and relatively low quality of oil at the two sites.

But they were well below what the company initially pitched for. The firm had proposed fees of between $8.50 and $12.50 a barrel.

Sonangol has said it will invest $2bn in Qayara and that several firms have shown an interest in forging joint exploration partnerships with it.

"There are at least five companies that have approached us and showed an interest to work with us to invest. We are still holding talks with them. The companies are European and American," said Paulino Jeronimo, exploration manager at Sonangol.

The deals must now be approved by Iraq's cabinet before they can be finalised.

Iraq is potentially a vastly rich oil country.

Its proven reserves now stand at 115bn barrels, below Iran's 137bn and Saudi Arabia's 264bn. But Iraq's data dates from the 1970s, before improvements in technology transformed the industry.

Angola is Africa's second most oil-rich nation after Nigeria.

Text of United States Congress Bill S. 2125 [109th]: Democratic Republic of the Congo Relief, Security, and Democracy Promotion Act of 2006.

One Hundred Ninth Congress of the United States of America.

AT THE SECOND SESSION

Begun and held in the City of Washington on Tuesday,
the third day of January, 2006.

An Act,

To promote relief, security, and democracy in the Democratic Republic of the Congo.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Democratic Republic of the
Congo Relief, Security, and Democracy Promotion Act of 2006’’.

TITLE I—BILATERAL ACTION ON ADDRESSING
URGENT NEEDS IN THE DEMOCRATIC REPUBLIC OF THE CONGO.

SEC. 101. FINDINGS.

Congress makes the following findings:

(1) The National Security Strategy of the United States,
dated September 17, 2002, concludes that ‘‘[i]n Africa, promise
and opportunity sit side-by-side with disease, war, and desperate
poverty. This threatens both a core value of the United
States preserving human dignity and our strategic priority
combating global terror. American interests and American principles,
therefore, lead in the same direction: we will work with
others for an African continent that lives in liberty, peace,
and growing prosperity.’’.

(2) On February 16, 2005, the Director of the Central
Intelligence Agency testified, ‘‘In Africa, chronic instability will
continue to hamper counterterrorism efforts and pose heavy
humanitarian and peacekeeping burdens.’’.

(3) According to the United States Agency for International
Development, ‘‘Given its size, population, and resources, the
Congo is an important player in Africa and of long-term interest
to the United States.’’.

(4) The Democratic Republic of the Congo is 2,345,410
square miles (approximately 1⁄4 the size of the United States),
lies at the heart of Africa, and touches every major region
of sub-Saharan Africa. Therefore, a secure, peaceful, and prosperous
Democratic Republic of the Congo would have a profound
impact on progress throughout Africa.

(5) The most recent war in the Democratic Republic of
the Congo, which erupted in 1998, spawned some of the world’s
worst human rights atrocities and drew in six neighboring
countries.

(6) Despite the conclusion of a peace agreement and subsequent
withdrawal of foreign forces in 2003, both the real and
perceived presence of armed groups hostile to the Governments
of Uganda, Rwanda, and Burundi continue to serve as a major
source of regional instability and an apparent pretext for continued
interference in the Democratic Republic of the Congo by
its neighbors.

(7) A mortality study completed in December 2004 by the
International Rescue Committee found that 31,000 people were
dying monthly and 3,800,000 people had died in the previous
six years because of the conflict in the Democratic Republic
of the Congo and resulting disintegration of the social service
infrastructure, making this one of the deadliest conflicts since
World War II.

(8) In 2004, Amnesty International estimated that at least
40,000 women and girls were systematically raped and tortured
in the Democratic Republic of the Congo since 1998, and nearly
two-thirds of ongoing abuses against women and girls are perpetrated
by members of the security forces, particularly the
Forces Armes de la Republique Democratique du Congo
(FARDC) and the Police Nationale Congolaise (PNC).

(9) According to the Department of State, ‘‘returning one
of Africa’s largest countries [the Democratic Republic of the
Congo] to full peace and stability will require significant United
States investments in support of national elections, the reintegration
of former combatants, the return and reintegration
of refugees and [internally displaced persons], establishment
of central government control over vast territories, and promotion
of national reconciliation and good governance’’.

SEC. 102. STATEMENT OF POLICY.

It is the policy of the United States—

(1) to help promote, reinvigorate, and support the political
process in the Democratic Republic of the Congo in order to
press all parties in the Transitional National Government and
the succeeding government to implement fully and to institutionalize
mechanisms, including national and international election
observers, fair and transparent voter registration procedures,
and a significant civic awareness and public education
campaign created for the July 30, 2006, elections and future
elections in the Democratic Republic of the Congo, to ensure
that elections are carried out in a fair and democratic manner;

(2) to urge the Government of the Democratic Republic
of the Congo to recognize and act upon its responsibilities
to immediately bring discipline to its security forces, hold those
individuals responsible for atrocities and other human rights
violations, particularly the rape of women and girls as an
act of war, accountable and bring such individuals to justice;

(3) to help ensure that, once a stable national government
is established in the Democratic Republic of the Congo, it
is committed to multiparty democracy, open and transparent
governance, respect for human rights and religious freedom,
ending the violence throughout the country, promoting peace
and stability with its neighbors, rehabilitating the national
judicial system and enhancing the rule of law, combating
corruption, instituting economic reforms to promote development,
and creating an environment to promote private investment;

(4) to assist the Government of the Democratic Republic
of the Congo as it seeks to meet the basic needs of its citizens,
including security, safety, and access to health care, education,
food, shelter, and clean drinking water;

(5) to support security sector reform by assisting the
Government of the Democratic Republic of the Congo to establish
a viable and professional national army and police force
that respects human rights and the rule of law, is under effective
civilian control, and possesses a viable presence throughout
the entire country, provided the Democratic Republic of the
Congo meets all requirements for United States military assistance
under existing law;

(6) to help expedite planning and implementation of programs
associated with the disarmament, demobilization, repatriation,
reintegration, and rehabilitation process in the Democratic
Republic of the Congo;

(7) to support efforts of the Government of the Democratic
Republic of the Congo, the United Nations Peacekeeping Mission
in the Democratic Republic of the Congo (MONUC), and
other entities, as appropriate, to disarm, demobilize, and repatriate
the Democratic Forces for the Liberation of Rwanda
and other illegally armed groups;

(8) to make all efforts to ensure that the Government
of the Democratic Republic of the Congo—

(A) is committed to responsible and transparent
management of natural resources across the country; and

(B) takes active measures—

(i) to promote economic development;

(ii) to hold accountable individuals who illegally
exploit the country’s natural resources; and

(iii) to implement the Extractive Industries Transparency
Initiative by enacting laws requiring disclosure
and independent auditing of company payments and
government receipts for natural resource extraction;

(9) to promote a viable civil society and to enhance nongovernmental
organizations and institutions, including religious
organizations, the media, political parties, trade unions, and
trade and business associations, that can act as a stabilizing
force and effective check on the government;

(10) to help rebuild and enhance infrastructure, communications,
and other mechanisms that will increase the ability
of the central government to manage internal affairs, encourage
economic development, and facilitate relief efforts of humanitarian
organizations;

(11) to help halt the high prevalence of sexual abuse and
violence perpetrated against women and children in the Democratic
Republic of the Congo and mitigate the detrimental
effects from acts of this type of violence by undertaking a
number of health, education, and psycho-social support programs;

(12) to work aggressively on a bilateral basis to urge
governments of countries contributing troops to the United
Nations Peacekeeping Mission in the Democratic Republic of
the Congo (MONUC) to enact and enforce laws on trafficking
in persons and sexual abuse that meet international standards,
promote codes of conduct for troops serving as part of United
Nations peacekeeping missions, and immediately investigate
and punish citizens who are responsible for abuses in the
Democratic Republic of the Congo;

(13) to assist the Government of the Democratic Republic
of the Congo as undertakes steps to—

(A) protect internally displaced persons and refugees
in the Democratic Republic of the Congo and border regions
from all forms of violence, including gender-based violence
and other human rights abuses;

(B) address other basic needs of vulnerable populations
with the goal of allowing these conflict-affected individuals
to ultimately return to their homes; and

(C) assess the magnitude of the problem of orphans
from conflict and HIV/AIDS in the Democratic Republic
of the Congo, and work to establish a program of national
support;

(14) to engage with governments working to promote peace
and security throughout the Democratic Republic of the Congo
and hold accountable individuals, entities, and countries
working to destabilize the country; and

(15) to promote appropriate use of the forests of the Democratic
Republic of the Congo in a manner that benefits the
rural population in that country that depends on the forests
for their livelihoods and protects national and environmental
interests.

SEC. 103. BILATERAL ASSISTANCE TO THE DEMOCRATIC REPUBLIC
OF THE CONGO.

(a) FUNDING FOR FISCAL YEARS 2006 AND 2007.—Of the
amounts made available to carry out the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.), the Agricultural Trade Development
and Assistance Act of 1954 (68 Stat. 454, chapter 469), and the
Arms Export Control Act (22 U.S.C. 2751 et seq.) for fiscal year
2006 and 2007, at least $52,000,000 for each such fiscal year should
be allocated for bilateral assistance programs in the Democratic
Republic of the Congo.

(b) FUTURE YEAR FUNDING.—It is the sense of Congress that
the Department of State should submit budget requests in fiscal
years 2008 and 2009 that contain increases in bilateral assistance
for the Democratic Republic of the Congo that are appropriate
if progress is being made, particularly cooperation by the Government
of the Democratic Republic of the Congo, toward accomplishing
the policy objectives described in section 102.

(c) COORDINATION WITH OTHER DONOR NATIONS.—The United
States should work with other donor nations, on a bilateral and
multilateral basis, to increase international contributions to the
Democratic Republic of the Congo and accomplish the policy objectives
described in section 102.

SEC. 104. ACCOUNTABILITY FOR THE GOVERNMENT OF THE DEMOCRATIC
REPUBLIC OF THE CONGO.

(a) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) the Government of the Democratic Republic of the Congo
must be committed to achieving the policy objectives described
in section 102 if the efforts of the United States and other
members of the international community are to be effective
in bringing relief, security, and democracy to the country;

(2) the Government of the Democratic Republic of the Congo
should immediately exercise control over and discipline its
armed forces, stop the mass rapes at the hands of its armed
forces, and hold those responsible for these acts accountable
before an appropriate tribunal;

(3) the Government of the Democratic Republic of the
Congo, in collaboration with international aid agencies, should
establish expert teams to assess the needs of the victims of
rape and provide health, counseling, and social support services
that such victims need; and

(4) the international community, through the United
Nations peacekeeping mission, humanitarian and development
relief, and other forms of assistance, is providing a substantial
amount of funding that is giving the Government of the Democratic
Republic of the Congo an opportunity to make progress
towards accomplishing the policy objectives described in section
102, but this assistance cannot continue in perpetuity.

(b) TERMINATION OF ASSISTANCE.—It is the sense of Congress
that the Secretary of State should withhold assistance otherwise
available under this Act if the Secretary determines that the
Government of the Democratic Republic of the Congo is not making
sufficient progress towards accomplishing the policy objectives
described in section 102.

SEC. 105. WITHHOLDING OF ASSISTANCE.

The Secretary of State is authorized to withhold assistance
made available under the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.), other than humanitarian, peacekeeping, and
counterterrorism assistance, for a foreign country if the Secretary
determines that the government of the foreign country is taking
actions to destabilize the Democratic Republic of the Congo.

SEC. 106. REPORT ON PROGRESS TOWARD ACCOMPLISHING POLICY
OBJECTIVES.

(a) REPORT REQUIRED.—Not later than one year after the date
of the enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report on the progress made
toward accomplishing the policy objectives described in section 102.

(b) CONTENTS.—The report required under subsection (a) shall
include—

(1) a description of any major impediments that prevent
the accomplishment of the policy objectives described in section
102, including any destabilizing activities undertaken in the
Democratic Republic of Congo by governments of neighboring
countries;

(2) an evaluation of United States policies and foreign
assistance programs designed to accomplish such policy objectives;
and

(3) recommendations for—

(A) improving the policies and programs referred to
in paragraph (2); and

(B) any additional bilateral or multilateral actions necessary
to promote peace and prosperity in the Democratic
Republic of the Congo.

SEC. 107. SPECIAL ENVOY FOR THE GREAT LAKES REGION.

Not later than 60 days after the date of the enactment of
this Act, the President should appoint a Special Envoy for the
Great Lakes Region to help coordinate efforts to resolve the instability
and insecurity in Eastern Congo.

TITLE II—MULTILATERAL ACTIONS TO ADDRESS URGENT NEEDS IN THE
DEMOCRATIC REPUBLIC OF THE CONGO.

SEC. 201. PROMOTION OF UNITED STATES POLICY TOWARD THE DEMOCRATIC
REPUBLIC OF THE CONGO IN THE UNITED NATIONS SECURITY COUNCIL.

The United States should use its voice and vote in the United
Nations Security Council—

(1) to address exploitation at the United Nations Peacekeeping
Mission in the Democratic Republic of the Congo (MONUC) by continuing to urge, when credible allegations exist, appropriate investigation of alleged perpetrators and,
as necessary, prosecution of United Nations personnel responsible
for sexual abuses in the Democratic Republic of the Congo;

(2) to conclude at the earliest possible date a Memorandum
of Understanding relating to binding codes of conduct and
programs for the prevention of sexual abuse and trafficking
in persons to be undertaken by the United Nations for all
countries that contribute troops to MONUC, to include the
assumption of personal liability for the provision of victims
assistance and child support, as appropriate, by those who
violate the codes of conduct;

(3) to strengthen the authority and capacity of MONUC
by—

(A) providing specific authority and obligation to prevent
and effectively counter imminent threats;

(B) clarifying and strengthening MONUC’s rules of
engagement to enhance the protection of vulnerable civilian
populations;

(C) enhancing the surveillance and intelligence-gathering
capabilities available to MONUC;

(D) where consistent with United States policy, making
available personnel, communications, and military assets
that improve the effectiveness of robust peacekeeping,
mobility, and command and control capabilities of MONUC;
and

(E) providing MONUC with the authority and
resources needed to effectively monitor arms trafficking
and natural resource exploitation at key border posts and
airfields in the eastern part of the Democratic Republic
of the Congo;

(4) to encourage regular visits of the United Nations Security
Council to monitor the situation in the Democratic Republic
of the Congo;

(5) to ensure that the practice of recruiting and arming
children in the Democratic Republic of the Congo is immediately
halted pursuant to Security Council Resolutions 1460 (2003)
and 1539 (2004);

(6) to strengthen the arms embargo imposed pursuant to
Security Council Resolution 1493 (2003) and ensure that violators
are held accountable through appropriate measures,
including the possible imposition of sanctions;

(7) to allow for the more effective protection and monitoring
of natural resources in the Democratic Republic of the Congo,
especially in the eastern part of the country, and for public
disclosure and independent auditing of natural resource revenues
to help ensure transparent and accountable management
of these revenues;

(8) to press countries in the Congo region to help facilitate
an end to the violence in the Democratic Republic of the Congo
and promote relief, security, and democracy throughout the
region; and

(9) to encourage the United Nations Secretary-General to
become more involved in completing the policy objectives
described in paragraphs (1) and (2) of section 102 and ensure
that recent fighting in North Kivu, which displaced over
150,000 people, as well as fighting in Ituri and other areas,
does not create widespread instability throughout the country.

SEC. 202. INCREASING CONTRIBUTIONS AND OTHER HUMANITARIAN
AND DEVELOPMENT ASSISTANCE THROUGH INTERNATIONAL ORGANIZATIONS.

(a) IN GENERAL.—The President should instruct the United
States permanent representative or executive director, as the case
may be, to the United Nations voluntary agencies, including the
World Food Program, the United Nations Development Program,
and the United Nations High Commissioner for Refugees, and other
appropriate international organizations to use the voice and vote
of the United States to support additional humanitarian and
development assistance for the Democratic Republic of the Congo
in order to accomplish the policy objectives described in section
102.

(b) SUPPORT CONTINGENT ON PROGRESS.—If the Secretary of
State determines that the Government of the Democratic Republic
of the Congo is not making sufficient progress towards accomplishing
the policy objectives described in section 102, the President
shall consider withdrawing United States support for the assistance
described in subsection (a) when future funding decisions are considered.

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.

Sponsored by Sen. Barack Obama (D-IL)
Introduced Dec 16, 2005
Reported by Committee May 23, 2006
Amendments (1 proposed)
Passed Senate Jun 29, 2006
Passed House Dec 6, 2006
Signed by President Bush Dec 22, 2006

Press Release from the Democratic Green Party of Rwanda.

DEMOCRATIC GREEN PARTY OF RWANDA
PRESS RELEASE No.3

The Democratic Green Party of Rwanda would like to inform the media, international community, representatives of foreign diplomatic missions, Embassies in Rwanda, and the general public that the government of Rwanda has continued to commit actions against democratic principles and human rights.

According to what happened on 30th October 2009 in Kigali at St Paul at our party Congress aimed at approving the party constitution, we faced extraordinary circumstances where our members were beaten by people who entered the conference room by force and clandestinely and started the chaos, shouting, “RPF Oyeee, RPF Oyeee!”. We would like to say something about what has been happening to us and our members since that time.

After the Congress, some of the people who caused the riot were caught by the police and taken for interrogation, but sadly, none of them stayed in police custody for more than an hour. They were immediately released and continued on with their normal life even though some of our members were wounded, hospitalized, and others lost their valuables.

Something else which is strange is that nobody summoned us-as Party representatives- to give explanations on the people who caused the chaos. We were again surprised to hear the explanations of the Police Spokesman on Radio Rwanda and Contact FM during the evening of that same day, confirming that what happened at St Paul was caused by Green Party members themselves.


We would like to emphasize the following three issues:

1. Our members have continued to be threatened and harassed by local government authorities.

2. Party members are oppressed by the National Police who deny us permission to hold a peaceful congress.

3. Newspaper articles in UMUVUGIZI Vol. 66 and UMUSESO No. 386, showing a list of people alleged to be Green Party members.


1. About our members who have continued to be threatened and harassed:

After the sabotaged Party Congress of 30th October 2009, many of our members have continued to be threatened and harassed in different ways. Below are some examples:

Ø After the Congress of 30th October 2009, a member, named Isaac KARANGWA, a resident of Nyagatovu cell, Kimironko Sector, was interrogated by village authorities (Umudugudu) and was advised not to join the Green Party when it is his right as a Rwandese to belong to any political party.

Ø On 2nd November 2009, Melisiyana NZAMUKOSHA, also from Nyagatovu, was threatened by her neighbor and when she went to village authorities, who refused to receive her complaint because she is in the Green Party.

Ø On 4th November 2009, Daphrose MUSABYIMANA was suddenly called to Kimironko Sector by Mr. HABIMANA Robert, the Executive Secretary, where she was asked why she became a Green party member;

Ø On 15th November 2009, BIHIBINDI, Gaston who is a former soldier in the R.D.F. (now demobilized) and resident of Nonko cell, Nyarugunga Sector, Kicukiro District, was kidnapped by unknown people and later imprisoned in the basement of the Ministry of Defense. He was detained for three days without food and asked why he joined the Green Party. He was also accused of recruiting fellow demobilized soldiers for the Green Party. He was severely beaten and threatened not to tell anyone what happened to him.

Ø On 21st November 2009, in a meeting that took place after public activities commonly known as “umuganda”, Innocent BAYITO, the President of GOBOKA Coperative in collaboration with the Executive Secretary of Kimironko Sector, and General RUTATINA questioned the husband of Daphrose MUSABYIMANA (Green Party member). He was accused of having a Green Party member as his wife.

We have so many other cases from different provinces where people have been threatened by local authorities for being party members. We have always advised them to be patient, remain calm, and inform us so that we can make a peaceful follow up.

Ø The Green Party 1st Vice-President, Mr. RWISEREKA André, resident of Huye District in South province, has been threatened by different and unknown people claiming his commercial activities in the NEW SOMBORERO CLUB are going to be stopped without any reason apart from being in the Party's administration.

2. Oppression from the Rwanda National Police

On 5th November 2009, we respectfully wrote to the mayor of Gasabo District, requesting her permission to hold another congress. This was the fifth time we were trying to hold a congress in the process of registering our Party. We recieved the response within two days. In this response, we started being accused -in writing- of having caused the chaos in our own congress held at St Paul.

The Mayor requested us to look for the clearance certificate from the National Police certifying that what happened at St. Paul will not happen again in Gasabo District and also showing how the ‘so-called conflicts’ were resolved by the police.

On 11th November 2009, we wrote to the Commissioner General of Police requesting the certificate. We informed him that the people who caused chaos in our meeting were caught by the National Police and are not our members. We reminded him that, if they were our members, the police would have called us to give some clarifications and nobody called us. Unfortunately, all those who were in police custody were released in only an hour.

The Commissioner General responded to us after twelve days. He said that he couldn’t give us the requested permission because the police are not yet sure what caused the chaos/conflicts was resolved. He informed us that they are still carrying out investigations and requested us to provide any information about the people who caused the chaos.

What was surprising is that the National police requested us to make investigations when it is one of their responsibilities and yet they released those they caught in action on short notice.

The same day we received that response, 23 November 2009, we wrote another letter to the Commissioner General of the National Police. In that letter we presented him two names: KAYISIRE Emmanuel, resident of Kimironko Sector, Gasabo District who works as a business broker at Gicement, in Remera, and KIMENYI, Jean-Claude, a resident of Nyamirambo who works as money changer in Kigali.

From that time we wrote the letter naming those two people, none of them have been arrested because they have been seen doing their business as usual. We have patiently waited for a response.

On 22nd December 2009, we phoned the secretariat of National Police headquarters in order to see if there was any response. They recommended us to be patient because the response was not yet ready. A whole month has passed and still no reply.

There appears to be no other purpose than delaying to complicate our situation.

3. Newspaper articles in UMUVUGIZI Vol. 66 and UMUSESO No. 386, showing a list of people alleged to be party members.

UMUSESO Newspaper, No. 386 of 14th to 21st December 2009, pg.2 has an article saying that there exists an intelligence report written by Gen. Jack NZIZA (Permanent Secretary of the Ministry of Defense) showing that Colonel and Senator Joseph KAREMERA and Patrick MAZIMPAKA are behind the Democratic Green Party of Rwanda, a Party still seeking legal registration. UMUSESO says that the report is aimed at ‘chopping off the heads’ of both Col. Joseph KAREMERA and Patrick MAZIMPAKA.

UMUVUGIZI Newspaper, Vol.66 of December 18th – 27th. 2009, also writes on the existence of the Report and it claims that RPF-Inkotanyi historicals have the sole objective of overthrowing H.E. President Paul Kagame’s regime. It is alleged that these historical/senior members are the ones behind the new political parties being born in Rwanda. It goes on to say that the report has linked all of them to be behind the Democratic Green Party of Rwanda (DGPR).

Details of those mentioned:

1. MAZIMPAKA Patrick (Former vice-chairman of the African Union Commission, and former Minister)

2. Ambassador RWAMASIRABO (former Rwandan Ambassador to Japan, and former Rector of National University of Rwanda)

3. Senator Joseph Karemera (former ambassador and minister)

4. Colonel Mudenge (current Director General of Rwandan Regulatory Agency)

5. Sam NKUSI (Former Minister of state for Energy in MINIFRA).

6. Commissioner General of Police Brigadier General Emmanuel Gasana (current Police Chief)

7. Commissioner General RWIGAMBA Andrew (former Police chief)

8. Ambassador NGOGA Pascal (former Rwandan ambassador to Ethiopia)

9. Dr. Maj. Ben KARENZI (Former permanent secretary in the Ministry of Health)

10. General and Ambassador FAUSTIN KAYUMBA NYAMWASA (former Rwandan Army Chief of staff, now Ambassador to India)

11. Senator INYUMBA Aloysie (former minister and Treasurer of the RPF party)

12. Brigadier General Richard RUTATINA (Presidential Advisor on security)

13. Colonel Zigira (who was a commissioner in the commission for the demobilization of soldiers.)

14. Dr. BIHOZAGARA (former Rwandan Ambassador to Brussells, former minister as well)

15. NKONGORI John (former Director General of Civil Aviation Authority)

We would like to respond to these articles. The Democratic Green Party of Rwanda seriously refutes all the allegations stated in these newspapers. There is nobody in the Democratic Green Party of Rwanda who wants to overthrow the RPF government.

UMUVUGIZI newspaper says that the report contains the names of people whose objective is to overthrow H.E. President Paul Kagame’s government. The Democratic Green Party of Rwanda has absolutely no intentions of destroying and overthrowing the Rwandan government.

UMUVUGIZI newspaper continues on to say that in the leaked intelligence report some of those people mentioned in connection to the allegations stated in the above paragraph have close relational ties with, or are friends to, KABANDA, Charles and HABINEZA, Frank two of the eleven people in the Executive Committee that governs the Democratic Green Party of Rwanda.

The leadership of the Democratic Green Party of Rwanda, wishes to inform all people living in and outside of Rwanda that those people listed in the report do not belong to our party. Those people allegedly mentioned to be hiding behind the Green Party, cannot do so, because our party members do not hide behind anyone or anything else.

Our party members are very well-known, attend party meetings regularly and make contributions openly. If someone wishes to join our party, the door is open. The Democratic Green Party of Rwanda has a clear strategy and program to welcome all Rwandans, both inside and outside of the country, to join the Green Party.

Writing a report of this nature, which contains lies, such as claiming we plan on overthrowing a government, is something we condemn vigorously. We are making it categorically clear, in no unmistakable terms, that these actions (such as overthrowing the government) are in stark contrast to Green Party principles all over the world.

We know very well that the people mentioned in the report are high-profile personalities, experienced and not cowards. If they belonged to the Green Party, we would say it openly without fear. Nobody should be allowed to make them say something they are not. We would like to confirm they are not members of our party.

The news in Umuseso and Umuvugizi indicate that the report lists names of relatives and friends who have connections to HABINEZA, Frank and KABANDA, Charles.

Being a relative or friend of someone does not make them share the same political opinions or be a member in the same political party. Even if they were in the same political party this would not mean that it results from a friendship or close relationship. It could just as easily be agreement with the good political program of the party.

Our political party does not harbor any nepotistic tendencies. Anyone who would like to know more about us should come and examine the composition of our members in the current Executive Committee.

The newspaper UMUVUGIZI states that the report says there is a connection between the Democratic Green Party of Rwanda and Mr. John NAGENDA, a Senior Advisor to President Yoweri MUSEVENI of Uganda. This is a lie.

The Democratic Green Party of Rwanda does not have any intentions of destroying or overthrowing the present government. Our party has a peaceful political program which will represent all Rwandans. It will be up to the Rwandan people to choose for themselves what type of political program they want through democratic means.

All such things are being done in order to make people hate us. These tactics are well known to the Rwandan people and we shall continue to speak the truth.

The Democratic Green Party of Rwanda, would like to request international organizations promoting human rights and democracy, the international community, representatives of foreign diplomatic missions and embassies in Rwanda and member states of the Commonwealth to closely follow our problems and carry out an investigation on the violence unleashed against us on 30th October 2009 at St.Paul.

We would like to request the friendly nations/countries of Rwanda to make an appeal to H.E. President KAGAME and the ruling RPF party to let the Democratic Green Party of Rwanda be accorded legal status in Rwanda.

We also would like to conclude by requesting all religious leaders in Rwanda and all over the world, to request H.E President Kagame and the ruling RPF party to accept the Democratic Green Party of Rwanda and let democracy take root in Rwanda.


CONCLUSION

After all this, and other things that may be planned against us, we shall continue to project the truth, among the Democratic Green Party Principles, we have that of non – violence, we shall continue to use it as one of the main pillars guiding us.

We have the faith that RPF will come to a point, when it will realize the truth, and stop basing on false reports; we shall continue expressing our grievances and the call to address our plight, be it in Rwanda and among the international community.

Having different views/ideas from that of the current Government does not automatically turn one into an enemy of the country.

Our objective is to build a country free from oppression of any kind, nepotism, corruption, and all other evils, so that our children will live in a good country, where everyone will have an equal say and can exercise his/her democratic rights freely.



Done in Kigali on 24th December 2009



Frank HABINEZA
President, Democratic Green Party of Rwanda



Frank HABINEZA,

Founding President, Democratic Green Party of Rwanda/
President, African Greens Movement ( AfGM)/
Co-Africa Representative to Global Greens Coordination (GGC)

Mob: + 250 78 85 630 39
Email: fhabineza@africangreens.org
http://www.rwandagreendemocrats.org

http://www.africangreens.org

http://www.globalgreens.org

UK firm gets oil refinery construction deal.

The New Vision
27 December 2009
By Ibrahim Kasita

Foster Wheeler Energy Ltd, a UK-based firm, has secured a contract to carryout a feasibility study for the construction and development of oil refinery in Uganda.

The refinery development programme will go through five stages; feasibility study, project promotion and attracting developers, and the front-end engineering design. Other stages are engineering procurement and construction and commission and operation of the refinery.

Kabagambe-Kaliisa, the energy permanent secretary, disclosed last week that the refinery feasibility study, which is expected to last six month, will commence on January 2 and be completed in mid-2010.

“The objectives of the feasibility studies are to recommend the size, configuration, location, cost and financing options of the refinery and the attendant infrastructure and markets for the refined products, preliminary environmental assessment of the possible impact of refinery development,” he said.

The study will also recommend possible areas for private sector participation.

He said Foster Wheeler Energy was selected in accordance with the international procurement process which started in August 2009.

“This process attracted 35 companies which expressed interest in undertaking the study.” Kaliisa explained.

“Out of these, six were contacted to submit their proposals and the proposal of Foster Wheeler Energy Ltd was considered the best.”

Foster Wheeler is a global engineering and construction contractor.

Omukama of Bunyoro Kingdom Refutes Allegations.

Sunday Monitor
By Francis Mugerwa & Felix Basime
December 27 2009

The Omukama of Bunyoro Kingdom, Dr Solomon Gafabusa Iguru, on Christmas Day stunned his subjects with the claim that top district officials have implicated him in a planned armed rebellion.

“The Hoima district chairman (George Bagonza) and RDC Martha Asiimwe have written to the President claiming that I am training rebels. That is false of course. They have caused me a lot of problems,” Iguru told Christians who attended Christmas Day prayers at St. Peters Cathedral (COU) at Duhaga in Hoima town.

“Let the government come and find out and kill them (rebels) if at all they exist. But am not aware about all this” Iguru added. He said the officials are linking him in a ploy to destabilise oil prospecting activities in Lake Albert through insurgency. Iguru’s claim comes at a time when the central government led by President Museveni is doing its best to court Bunyoro, a sub-region where the huge oil deposits have recently been confirmed.

Demanding royalties

The kingdom has so far demanded that it gets paid substantial royalties once commercial exploitation of the oil starts. This is the first time the cultural leader of the Banyoro was commenting on such a sensitive security matter to his subjects.

Iguru is also chairperson of Uganda cultural leaders’ forum which brings together 13 cultural leaders of Uganda. But the district chairman distanced himself from the accusation.

“I have been told that he mentioned me in his address to Christians. But I think my king is just idle,” Mr Bagonza said in an interview adding, “Let him show the public the letter I wrote to the President.”

Letter talk

He added that he has never written to President Museveni since he became district chairman in 2001. Mr Bagonza protested that he is “too small to write to the President”. “Telling such a lie would be contempt of the highest order,” he said. “The king has lost focus”.

Mr Bagonza is a well known critic of the Bunyoro Kingdom institution and is widely suspected to have engineered the arrest of two of the king’s guards early this year but he denies such allegations. RDC Asiimwe has since contacted Sunday Monitor to express her disappointment at the king.

“These are wild allegations from the cultural leader,” Ms Asiimwe said.

Africa Oil and Puntland State of Somalia Amend Production Sharing Agreements.

Africa Oil
Press Release
27 December 2009

Africa Oil Corp. (TSX VENTURE:AOI) ("Africa Oil" or "the Company") and the Puntland State of Somalia are pleased to announce that they have entered into amending agreements modifying the terms of the existing January 17, 2007 Production Sharing Agreements made in respect of the Dharoor Valley Exploration Area and the Nugaal Valley Exploration Area. The revised agreements were signed by the parties in Garowe on December 8, 2009 and the amending agreements were ratified by the parliament of the Puntland State of Somalia on December 23, 2009.

With the conclusion of the negotiations and the execution of the amending agreements, the Production Sharing Agreements, as amended, now provide for initial exploration periods in respect of both blocks that have been extended from 36 months to 48 months with a revised expiry of January 17, 2011. In addition, the terms of the exploration programs have been amended so that Africa Oil can, at its option, drill one exploratory well in each of the Nugaal and Dharoor Valley Exploration Areas, or two exploratory wells in the Dharoor Valley.

In consideration of the extension of the exploration period, Africa Oil agreed to voluntarily relinquish twenty-five percent of the original agreement area on or before January 17, 2010 and has agreed to pay a US$1 million bonus within 30 days of a commercial discovery in each of the production blocks. Africa Oil also agreed to certain enhanced abandonment and environmental safety measures and to make a one time US$ 1,050,000 payment to the Puntland government for development of infrastructure.

Africa Oil President and CEO, Keith Hill, commented, "We are very pleased that we have been able to come to a mutually beneficial agreement which will allow us to recommence operations in our Puntland, Somalia blocks. Our plan is to immediately commence operations with an intent to spud the first exploration well by mid-2010. We consider these blocks to have world class exploration potential and to be a continuation of the prolific Yemen rift system."

Africa Oil is an exploration focused company based in Canada with ongoing operations in Kenya, Ethiopia and Somalia. The Company is currently drilling an exploration well in Block 9 in Kenya and has recently completed a seismic acquisition program in the Adigala Block in Ethiopia. The rift basins of East Africa on which the company has acquired over 200,000 square kilometers of gross acreage are highly under-explored and analogous to recent major discoveries in the Albert Graben in Uganda. The Company plans an aggressive exploration seismic and drilling program to evaluate this potential in the next two years.

ON BEHALF OF THE BOARD

"Keith Hill", President and CEO

All Hail The Grand Poobah; Congress Gives Blank Checks For Fannie Mae and Freddie Mac.

Mish's Global Economic Trend Analysis
by Mike "Mish" Shedlock
26 December 2009

Editor's Note: They snuck this one by on Christmas Eve, when, amidst the backdrop of the concomitant Senate healthcare bill, they thought nobody would notice. Hush money?

Losses continue to mount at Fannie and Freddie where Obama has virtually declared no loss is too big for taxpayers to pay.

Please consider U.S. Move to Cover Fannie, Freddie Losses Stirs Controversy.

The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.

The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.

Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.

"The timing of this executive order giving Fannie and Freddie a blank check is no coincidence," said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed "to prevent the general public from taking note."

In exchange for the funding, the Treasury has received preferred stock in the companies paying 10% dividends. The Treasury also has warrants to acquire nearly 80% of the common shares in each firm.

The companies on Thursday disclosed new packages that will pay Fannie Chief Executive Officer Michael Williams and Freddie CEO Charles Haldeman Jr. as much as $6 million a year, including bonuses. The packages were approved by the Treasury and the Federal Housing Finance Agency, or FHFA, which regulates the companies.

At Freddie, annual compensation will total as much as $4.5 million for Bruce Witherell, chief operating officer; $3.5 million for Ross Kari, chief financial officer; $2.8 million for Robert Bostrom, general counsel; and $2.7 million for Paul George, head of human resources.

Excuse me for asking the obvious question but how in the hell can the head of human resources for a company that is losing hundreds of billions of dollars a year be worth anything, let alone $2.7 million.

This is precisely the problem with regulation. Fannie and Freddie should not exist at all, it was an act of regulation that created them, it is an act of regulation that keeps them in business, and it is regulation that defends its policies that lose taxpayer money to the tune of hundreds of billions of dollars, and it is regulators that are approving ridiculous salaries for a company that should not even be in business.

The only thing that makes any sense is to shut down Fannie and Freddie totally, yet regulation and regulators have not taken step one in that direction. Yet, people scream for more and more regulation.

The latest proposal is to create a regulator of regulators, some sort of systemic risk all knowing wizard who supposedly would have prevented this crisis.

Never mind that thousands of people knew Fannie and Freddie would blow sky high, including some Fed governors. Ironically, we cannot even get rid of the GSEs after they have blown sky high and losses continue to mount.

Never mind that regulators continually get into bed with those they are supposed to regulate.

All Hail The Grand Poobah

Instead we can look forward to the creation of the post Grand Poobah of regulators.

Grand Poobah is a term derived from the name of the haughty character Pooh-Bah in Gilbert and Sullivan's The Mikado (1885). In this comic opera, Pooh-Bah holds numerous exalted offices, including "First Lord of the Treasury, Lord Chief Justice, Commander-in-Chief, Lord High Admiral... Archbishop of Titipu, and Lord Mayor" and Lord High Everything Else. The name has come to be used as a mocking title for someone self-important or high-ranking and who either exhibits an inflated self-regard or who has limited authority while taking impressive titles.

The term "Grand Poobah" was used on the television show The Flintstones as the name of a high ranking elected position in a men's club. Fred Flintstone and his friend Barney Rubble were members of the Loyal Order of Water Buffaloes Lodge No. 26. The lodge is a spoof of men's clubs like the Freemasons, the Shriners, the Elks Club and the Moose Lodge.

The only regulation we need is a sound currency, no fractional reserve lending, and a balanced budget amendment. Instead we can look forward to the the creation of some sort of regulatory Grand Poobah, an idiotic waste of time and money.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

India all but shelves IPI gas pipeline project.

Daily Times
27 December 2009
By Iftikhar Gilani

NEW DELHI: India has almost shelved the tri-nation Iran-Pakistan-India (IPI) gas pipeline project, linking its lack of progress to the political problems with Islamabad.

“The main hurdle is Pakistan. All other issues are minor which can be resolved very easily,” The Asian Age newspaper quoted government sources as saying on Saturday.

Experts say any substantial progress on the pipeline project now looks bleak unless political issues with Pakistan are resolved.

Earlier this month, the Iranian deputy oil minister, Seifollah Jashnsaz, said India would soon specify dates for resuming the dialogue between the three nations. But the government was quoted by the newspaper as saying that India was reluctant to go ahead with the project until political differences with Pakistan were resolved.

However, India is unlikely to officially pull out of the pipeline project.

“If they want us to talk on the pipeline, we will talk. If they come to meet us, we will meet them but the progress ahead looks difficult,” added the sources.

Iranian Foreign Minister Manouchehr Mottaki had warned that Iran would not wait indefinitely for India to join the project.

Iran and Pakistan signed a bilateral agreement this year to sell gas from the giant South Pars field in the Persian Gulf through a pipeline. India last attended a trilateral ministerial meeting on the project in 2007. Iran has started work on the laying down of the pipeline.

Iran, Pakistan and India had targeted the flow of gas from the proposed IPI pipeline by 2011. IPI pipeline project is proposed to supply 60 million cubic metres a day (mmscmd) of gas in phase-I to be shared equally between India and Pakistan.