Category: Asia Pacific

  • MIL-OSI USA: Congressman Raja Krishnamoorthi Presents Veterans of the Vietnam War with Lapel Pins Honoring their Service as 50-Year Anniversary of War’s End Approaches

    Source: United States House of Representatives – Congressman Raja Krishnamoorthi (8th District of Illinois)

    St. Charles, IL – Today, Congressman Raja Krishnamoorthi (D-IL) presented veterans from the U.S. military with lapel pins honoring the upcoming 50-year anniversary of the end of American military involvement during the Vietnam War. The ceremony, which took place at Veterans of Foreign Wars (VFW) Post 5036 in St. Charles, was attended by veterans of several branches of the military and American Legion Post 342 Commander Joe Morgan. Earlier this year, Congressman Krishnamoorthi championed the passage of bipartisan legislation that renamed the town’s post office to the Veterans of the Vietnam War Memorial Post Office to honor those who served the country in Vietnam.

    “The debt of gratitude our country owes to those who have risked so much for our nation in uniform is immeasurable,” Congressman Krishnamoorthi said. “As the 50-year anniversary of the Vietnam War’s end approaches, now is a special time to honor the millions of Americans who served our country in uniform during the conflict. It was a privilege to meet and speak to so many of these heroes this morning, and an honor to recognize their service as we show them that our grateful nation will never forget their courage, commitment, and sacrifice.”

    MIL OSI USA News

  • MIL-OSI Security: Marion Man Sentenced to 262 Months in Prison

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    FORT WAYNE–James Darquan McCreary, 45 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to distribute cocaine and possessing a firearm as a convicted felon, announced United States Attorney Clifford D. Johnson.

    McCreary was sentenced to 262 months in prison followed by 8 years of supervised release. 

    According to documents in the case, in March 2020, McCreary possessed more than 500 grams of cocaine that was intended for distribution and illegally possessed firearms as a convicted felon.  McCreary was determined to be a career offender based on his prior felony battery and robbery convictions from Grant County, Indiana.  

    This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the J.E.A.N. (Joint Effort Against Narcotics) Team Drug Task Force, the Indiana State Police, the Marion Police Department, the Grant County Sheriff’s Department, the Grant County Prosecuting Attorney’s Office, the Cass County Sheriff’s Department, and the Wabash County Sheriff’s Department.  The case was prosecuted by Assistant United States Attorney Anthony W. Geller.

    MIL Security OSI

  • MIL-OSI Security: Convicted Murderer Found Guilty of Illegally Possessing Multiple Firearms Following Federal Jury Trial

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    INDIANAPOLIS— A federal jury has convicted Salam Abdul Ali, 57, of Indianapolis, of illegally possessing firearms as a previously convicted felon, following a one-day trial.

    According to court documents and evidence introduced at trial, on January 28, 2024, Indianapolis Metropolitan Police Department (IMPD) officers were dispatched to a home for a domestic disturbance call. Upon arrival, a woman who lived at the home with her children reported that her ex-boyfriend, Salam Abdul Ali, owned guns and made threats to kill her, her children, and her brother following an argument the previous night.

    On February 14, 2024, IMPD investigators conducted a court-authorized search at Ali’s residence. During the search, investigators located five firearms in his bedroom, along with ammunition and firearm accessories. Ali was present and admitted to law enforcement officers, “I got guns, I sure do,” which was captured on body worn camera.

    During the investigation, officers learned that Ali’s former name was Christopher Butler. Ali changed his name from Butler after he was convicted of murder in Marion County and sentenced to sentenced to 60 years in prison. He was released from state prison in approximately 2013. In 2019, Ali was convicted in federal court for his involvement in a drug trafficking conspiracy and sentenced to time served in federal prison. Ali was still on federal supervised release at the time of his most recent arrest. Ali is permanently prohibited from ever again legally possessing a firearm as a result of his felony convictions.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives and IMPD investigated this case. U.S. District Judge Matthew P. Brookman presided over the trial and will sentence the defendant at a future hearing. Ali faces up to 15 years in federal prison.

    U.S. Attorney Zachary A. Myers thanked Assistant U.S. Attorneys Pam Domash and Zachary Szilagyi, who prosecuted this case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    ###

    MIL Security OSI

  • MIL-OSI USA: Wyden, Merkley, Blumenauer, Hoyle: State of Oregon & Four Tribes Earn More Than $12 Million in Federal Funds for Grid Resilience

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)
    October 30, 2024
    Tribes with Oregon presence to receive federal investments are the Confederated Tribes of the Warm Springs, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute and Nez Perce
    Washington, D.C. – U.S. Sens. Ron Wyden and Jeff Merkley as well as U.S. Reps. Earl Blumenauer and Val Hoyle today announced that Oregon’s Energy Department has secured $10.9 million and four Tribes with members in Oregon have earned a combined $1.16 million in federal investment to modernize the electric grid and reduce the impacts of extreme weather while also ensuring power sector reliability.
    The four Tribes securing the federal funds are the Confederated Tribes of the Warm Springs, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute and Nez Perce.
    “Oregon families, small businesses, schools, hospitals and more rely on a dependable energy grid, said Wyden, who also has introduced the Grid Resilience Improvement through Dedicated (GRID) Assistance Act. “These fresh federal investments in grid resilience are incredibly timely after this year’s state record of nearly 2 million acres burned by wildfires. I’m gratified these resources are heading to these Tribes along with the state Energy Department, and will keep battling for similar funds for communities throughout the state.”
    “As devastating wildfires, droughts, and intense winter storms continue to grip Oregon, we must invest in strengthening our power grids to safeguard Oregon families and businesses,” Merkley said. “It is great news that these federal funds from the Bipartisan Infrastructure Law are heading to the Oregon Department of Energy and Tribes to make these critical improvements that will make all the difference for communities across Oregon when disasters strike.”
    “Our communities need an electric grid that can withstand the increasingly severe impacts of the climate crisis. Thanks to Democrats in Congress, Oregon and Tribal nations are receiving the investments necessary build this reality with a smarter, more resilient power grid,” said Blumenauer.
    “As this season’s record-breaking wildfire season showed, extreme weather, caused by the climate crisis, is becoming increasingly common across Oregon,” Hoyle said. “These funds will help to fortify our energy infrastructure against extreme weather and improve its dependability across the state and in Tribal communities. I’ll continue working with federal and state partners to ensure Oregon’s electric grid is safe and resilient.”
    The federal money for the state Energy Department and four Tribes is part of a combined total of $473.6 million nationally in fiscal year 2024 Grid Resilience State and Tribal Formula Grants from the U.S. Department of Energy. The resources will be distributed as follows:
    ·       Oregon Department of Energy, $10.9 million 
    ·       Confederated Tribes of the Warm Springs, $454,958
    ·       Nez Perce Tribe, $290,877
    ·       Cow Creek Band of Umpqua Tribes of Indians, $268,172
    ·       Burns Paiute Tribe, $148,901
    “The Confederated Tribes of the Warm Springs is thankful for the federal government’s financial investment in our ability to protect our communities from extreme weather situations,” said Jonathan W. Smith, Sr., Chairman, Tribal Council for the Confederated Tribes of the Warm Springs Reservation of Oregon. “These funds will allow us to develop community resilience centers on our reservation for our tribal members to seek refuge during unbearably hot and cold weather patterns.”
    “The Burns-Paiute tribe has identified energy security and resilience as a key priority,” said Tracy Kennedy, Chair of the Burns-Paiute Tribe. “We appreciate the support from Senator Wyden and Senator Merkley in helping us get funding to achieve our goals.” 
    “For the Cow Creek Band of Umpqua Tribe of Indians, we aim to use these generous funds to improve the reliability of delivering power, water and utility services provided by our own Umpqua Indian Utility Cooperative to the many Cow Creek Umpqua Tribally-owned properties, our Tribal citizens, and our community members in Canyonville,” said Carla Keene, Chairman of the Cow Creek Band of Umpqua Tribe of Indians. “This grant allows us to exercise our sovereign rights, strengthen the resilience of our system, and put us closer to achieving one of our long-term goals of energy independence.”– 
    “The Nez Perce Tribe is committed to helping the Northwest meet its energy needs in a cleaner and smarter way that will address the impacts of current energy demands on salmon restoration,” said Shannon F. Wheeler, Chairman, Nez Perce Tribal Executive Committee. “These funds are an important component of this collaborative work with energy utilities and other stakeholders in the Northwest and we are excited that these funds will allow us to continue to do this work.”  

    MIL OSI USA News

  • MIL-OSI: North American Construction Group Ltd. Announces Results for the Third Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    ACHESON, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG”) (TSX:NOA.TO/NYSE:NOA) today announced results for the third quarter ended September 30, 2024. Unless otherwise indicated, financial figures are expressed in Canadian dollars and compared to the prior period ended September 30, 2023.

    Third Quarter 2024 Highlights:

    • Combined revenue of $367.2 million compared favorably to $274.8 million in the same period last year, is a third quarter record, and reflected the best operational quarter to date from the Australian fleet of the MacKellar Group which was acquired on October 1, 2023.
    • Reported revenue of $286.9 million, compared to $196.9 million in the same period last year, was primarily driven by strong equipment utilization of 84% in Australia but was also supported by the Canadian heavy equipment fleet which posted an increase from 2024 Q2.
    • Our net share of revenue from equity consolidated joint ventures was $80.3 million in 2024 Q3 and compared to $77.9 million in the same period last year as the increases at the Fargo project in the current quarter were offset by gold mine project scopes in Northern Ontario completed in the prior quarter.
    • Adjusted EBITDA of $106.4 million and margin of 29.0% compared favorably to the prior period operating metrics of $59.4 million and 21.6%, respectively, as revenue increases resulted in higher gross EBITDA with margin improvements driven by effective operations in Australia and Canada.
    • Combined gross profit of $80.4 million and margin of 21.9% compares favorably to the 13.8% posted in the same period last year as both diversification efforts and effective operations during steady and consistent months contributed to improved margins in the quarter.
    • Cash flows generated from operating activities of $48.2 million was higher than the $37.5 million generated in the prior period as higher cash generation from the strong EBITDA was offset by the temporary impact of changes to working capital in the quarter.
    • Free cash flow generated in the quarter was $10.8 million. Free cash flow prior to working capital changes and increases in capital work in progress was over $55 million resulting from strong revenues and margins offset by our routine capital maintenance programs.
    • Net debt was $882.5 million at September 30, 2024, an increase of $159.1 million from December 31, 2023, as year-to-date free cash flow usage and growth asset purchases required debt financing. The cash-related interest rate was 6.5% driven by Bank of Canada posted rates and corresponding equipment financing rates.
    • On October 29, 2024, the Board of Directors declared a regular quarterly dividend of twelve cents which represents a 20% increase from the previous rate of ten cents per quarter.
    • Additional highlights include: i) in August, signed a $375 million five-year contract for fully maintained equipment fleet in Queensland; ii) in September, surpassed the 50% completion mark at the Fargo-Moorhead flood diversion project, iii) in October, completed delivery to site of twenty-five haul trucks from Canada to Australia; iv) commenced go-live activities for the Company’s ERP system in Australia phased integration ongoing through early November and iv) extended the credit facility agreement through to October 2027.

    Joe Lambert, President and CEO, stated, “I would like to thank our operations team for their safe and efficient performance this quarter. The quarterly records set in Australia demonstrate both growth and operational excellence. The recent five-year contract award and the 25 trucks delivered from Fort McMurray have pushed this region to higher than 50% of our overall business and are further indicators of what will be an exciting 2025. In the oil sands region, we are in discussions with producers and expect to secure meaningful contracts in the near term, reaffirming strong client relationships and supporting our targets for next year.”

    Consolidated Financial Highlights

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands, except per share amounts)   2024   2023(iv)   2024   2023(iv)
    Revenue   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Total combined revenue(i)     367,155       274,757       1,042,591       875,666  
                     
    Gross profit     65,098       26,518       168,057       89,213  
    Gross profit margin(i)     22.7 %     13.5 %     19.5 %     14.0 %
                     
    Combined gross profit(i)     80,415       38,004       205,229       130,181  
    Combined gross profit margin(i)(ii)     21.9 %     13.8 %     19.7 %     14.9 %
                     
    Operating income     53,805       14,344       130,786       50,386  
                     
    Adjusted EBITDA(i)(iii)     106,384       59,371       286,516       195,827  
    Adjusted EBITDA margin(i)(iii)     29.0 %     21.6 %     27.5 %     22.4 %
                     
    Net income     13,901       11,387       39,277       45,495  
    Adjusted net earnings(i)     31,253       14,295       72,961       52,060  
                     
    Cash provided by operating activities     48,184       37,512       119,063       109,521  
    Cash provided by operating activities prior to change in working capital(i)     79,838       41,666       222,641       134,646  
                     
    Free cash flow(i)     10,785       8,940       (32,518 )     (21,817 )
                     
    Purchase of PPE     61,812       39,295       203,772       114,210  
    Sustaining capital additions(i)     21,127       42,290       118,317       127,792  
    Growth capital additions(i)     21,437       1,727       60,987       4,475  
                     
    Basic net income per share   $ 0.52     $ 0.43     $ 1.47     $ 1.72  
    Adjusted EPS(i)   $ 1.17     $ 0.54     $ 2.73     $ 1.96  

    (i)See “Non-GAAP Financial Measures”.
    (ii)Combined gross profit margin is calculated using combined gross profit over total combined revenue.
    (iii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
    (iv)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)   2024   2023   2024   2023
    Consolidated Statements of Cash Flows                
    Cash provided by operating activities   $ 48,184     $ 37,512     $ 119,063     $ 109,521  
    Cash used in investing activities     (60,221 )     (26,970 )     (198,919 )     (107,123 )
    Effect of exchange rate on changes in cash     1,385       (1,100 )     508       (1,462 )
    Add back of growth and non-cash items included in the above figures:                
    Growth capital additions(i)(ii)     21,437       1,727       60,987       4,475  
    Capital additions financed by leases(i)           (2,229 )     (14,157 )     (27,228 )
    Free cash flow(i)   $ 10,785     $ 8,940     $ (32,518 )   $ (21,817 )

    (i)See “Non-GAAP Financial Measures”.
    (ii)Included above in Cash used in investing activities.

    Declaration of Quarterly Dividend

    On October 29, 2024, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on November 27, 2024. The Dividend will be paid on January 3, 2025, and is an eligible dividend for Canadian income tax purposes.

    Financial Results for the Three Months Ended September 30, 2024

    Revenue for 2024 Q3 of $286.9 million represented an increase of approximately $90.0 million (or 46%) from 2023 Q3. The increase is primarily due to the inclusion of results from the MacKellar Group (“MacKellar”) following our acquisition on October 1, 2023.

    The Heavy Equipment – Australia segment showed strong performance, driven by MacKellar’s Q3 results generated from stable operating conditions during the quarter. Equipment utilization of the MacKellar fleet for the quarter of 84% was similar to 2024 Q2 but generated higher revenue as growth assets commissioned late in the second quarter in Western Australia and Queensland provided full quarter contributions. The month of July was particularly strong with utilization being above the target of 85% while August and September averaged 82%. DGI Trading Pty Ltd. (“DGI”) posted lower revenue in the quarter due to timing of large component sales but continues to benefit from international demand for low-cost used components and major parts required by heavy equipment fleets in the mining industry.

    The Heavy Equipment – Canada segment posted a decline in revenue compared to the prior year as equipment utilization was 51% for the quarter in comparison to 56% in 2023 Q3. Quarter over quarter, the decrease in revenue represented a 23% decrease and was primarily driven by changes in work scopes at the Fort Hills and Syncrude mines offset by increases in operating hours at the Millennium mine. Additionally, the prior year’s quarter benefited from higher utilization rates from NACG assets being operated at the gold mine in northern Ontario, a project that concluded in 2023 Q3. When comparing to 2024 Q2, top-line revenue achieved in the quarter was 8% higher on consistent operating conditions from July to September as well as increased work scopes at the Millennium mine.

    Combined revenue of $367.2 million represented a $92.4 million (or 34%) increase from 2023 Q3. Our share of revenue generated in 2024 Q3 by joint ventures and affiliates was $80.3 million, compared to $77.9 million in 2023 Q3. The Fargo-Moorhead flood diversion project, which completed another strong operational quarter, posted a 32% increase from scopes completed in the prior quarter and surpassed the 50% completion mark during the quarter. Mostly offsetting this variance was the completion of the gold mine project in northern Ontario which occurred in 2023 Q3.

    Combined gross profit and margin of $80.4 million and 21.9% compares favorably to the $38.0 million and 13.8% posted in the prior quarter and was the compilation of strong operations across all business lines. In particular, consistent weather conditions in Australia resulted in productive operations and a 24.6% gross margin over the three months. In Canada, heavy equipment operations posted a 19.4% margin as operations stabilized from the first half of the year. The joint ventures posted a 19.1% margin, up from 14.7% in the prior quarter, as Nuna returned to profitable operations. The increases in margin were offset slightly within the Fargo joint ventures as additional costs were recognized in the quarter primarily related to project cost escalation.

    Adjusted EBITDA and the associated margin of $106.4 million and 29.0% exceeded our 2023 Q3 results of $59.4 million and 21.6%, respectively. As mentioned above and despite lower revenue in the oil sands region, effective and efficient operation of the heavy equipment fleets in Australia and Canada generated a strong EBITDA margin. EBITDA margin for this quarter was more consistent with the first quarter and is reflective of the underlying consistent business of our heavy equipment fleets.

    Depreciation of our Canadian and Australian heavy equipment fleets was 13.4% of revenue in the quarter. Depreciation as a percentage of revenue was 16.4% for the Heavy Equipment – Canada fleet which is higher than our historical average as increased customer demand for heavy equipment rentals has changed the revenue profile. The Heavy Equipment – Australia fleet, which averaged approximately 11.7% of revenue reflected both productive operations in the quarter as well as the depreciation of fair market values allocated upon purchase. On a combined basis, depreciation averaged 12.1% of combined revenue in the quarter as the lower capital intensity in Fargo and Nuna joint ventures modestly reduced the ratio.

    General and administrative expenses (excluding stock-based compensation) were $9.6 million, or 3.4% of revenue, compared to $6.9 million, or 3.5% of revenue in 2023 Q3. The increase in expenses reflects the acquisition of the MacKellar Group. Cash related interest expense for the quarter was $14.2 million at an average cost of debt of 6.5%, compared to $7.8 million at an average cost of debt of 7.1% in 2023 Q3, as rates posted by the Bank of Canada directly impact our Credit Facility and have a delayed impact on the rates for secured equipment-backed financing. Total interest expense was $15.0 million in the quarter, compared to $8.1 million in 2023 Q3 based on the debt financing incurred upon acquisition of the MacKellar Group on October 1, 2023.

    Adjusted earnings per share (“EPS”) of $1.17 on adjusted net earnings of $31.3 million was up 117% from the prior year figure of $0.54, consistent with the adjusted EBIT performance which was up 144% quarter over quarter. As mentioned above, the step-changes in interest from the MacKellar acquisition offset EBIT performance with the effective income tax rates being comparable for both quarters. Weighted-average common shares for the third quarters of 2024 and 2023 were relatively stable at 26,823,124 and 26,700,303, respectively, net of shares classified as treasury shares.

    For the quarter, free cash flow generation was $10.8 million, driven primarily by adjusted EBITDA of $106.4 million. After accounting for sustaining capital additions of $21.1 million, cash interest expense of $14.2 million, and cash taxes paid of $9.3 million, the positive cash flow generation reached $61.8 million. However, changes in working capital and increases in capital work in progress deferred approximately $45 million of cash flow to future quarters, and the accumulation of distributable profits in our joint ventures negatively impacted cash flow by $10 million. Sustaining capital expenditures were focused on routine maintenance of heavy equipment fleets in Australia and Canada, with Canadian expenditures being lower than previous periods due to reduced operating hours and a disciplined approach in preparation for winter work scopes.

    2024 Strategic Focus Areas

    • Safety – now on an international basis, maintain our uncompromising commitment to health and safety while elevating the standard of excellence in the field;
    • Execution – enhance equipment availability in Canada and Australia through in-house fleet maintenance, reliability programs, technical improvements, and management systems;
    • Operational excellence – with a specific focus on Nuna Group of Companies, put into action practical and experienced-based protocols to ensure predictable high-quality project execution;
    • Integration – implement ERP and best practices at MacKellar, including identification of opportunities to better utilize our capital and equipment in Australia;
    • Diversification – pursue diversification of customers and resources through strategic partnerships, industry expertise and investment in Indigenous joint ventures; and
    • Sustainability – further develop and deliver into our environmental, social, and governance targets as disclosed and committed to in our annual reporting.

    Liquidity

    Our current liquidity positions us well moving forward to fund organic growth and the required correlated working capital investments. Including equipment financing availability and factoring in the amended Credit Facility agreement, total available capital liquidity of $173.1 million includes total liquidity of $135.7 million and $20.0 million of unused finance lease borrowing availability as at September 30, 2024. Liquidity is primarily provided by the terms of our $485.7 million credit facility which allows for funds availability based on a trailing twelve-month EBITDA as defined in the agreement.

        September 30,
    2024
      December 31,
    2023
    Cash   $ 77,670     $ 88,614  
    Credit Facility borrowing limit     485,700       478,022  
    Credit Facility drawn     (395,700 )     (317,488 )
    Letters of credit outstanding     (32,011 )     (31,272 )
    Cash liquidity(i)   $ 135,659     $ 217,876  
    Finance lease borrowing limit     350,000       350,000  
    Other debt borrowing limit     20,000       20,000  
    Equipment financing drawn     (267,544 )     (220,466 )
    Guarantees provided to joint ventures     (65,008 )     (74,831 )
    Total capital liquidity(i)   $ 173,107     $ 292,579  

    (i)See “Non-GAAP Financial Measures”.


    NACG’s Outlook for 2024

    The following table provides projected key measures for 2024. These measures are predicated on contracts currently in place, including expected renewals, and the heavy equipment fleet that we own and operate.

    Key measures   2024
    Combined revenue(i)   $1.4 – $1.5B
    Adjusted EBITDA(i)   $395 – $415M
    Sustaining capital(i)   $150 – $170M
    Adjusted EPS(i)   $3.95 – $4.15
    Free cash flow(i)   $100 – $120M
         
    Capital allocation    
    Growth spending(i)   $85 – $95M
    Net debt leverage(i)   Targeting 2.1x

    (i)See “Non-GAAP Financial Measures”.


    Conference Call and Webcast

    Management will hold a conference call and webcast to discuss our financial results for the quarter ended September 30, 2024, tomorrow, Thursday, October 31, 2024, at 7:00 am Mountain Time (9:00 am Eastern Time).

    The call can be accessed by dialing:
              Toll free: 1-800-717-1738
              Conference ID: 86919

    A replay will be available through November 29, 2024, by dialing:
              Toll Free: 1-888-660-6264
              Conference ID: 86919
              Playback Passcode: 86919

    The 2024 Q3 earnings presentation for the webcast will be available for download on the company’s website at www.nacg.ca/presentations/

    The live presentation and webcast can be accessed at:

    https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=71BDBAD7-6AC1-4CF9-9CFF-5BBCBBDEF924

    A replay will be available until November 29, 2024, using the link provided.

    Basis of Presentation

    We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis (“MD&A”) for the quarter ended September 30, 2024, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2024 Q3 Results Presentation for more information on our results and projections which can be found on our website under Investors – Presentations.

    Change in significant accounting policy – Basis of presentation

    During the first quarter of 2024, we changed our accounting policy for the elimination of our proportionate share of profit from downstream sales to affiliates and joint ventures to record through equity earnings in affiliates and joint ventures on the Consolidated Statements of Operations and Comprehensive Income. Prior to this change, we eliminated our proportionate share of profit on downstream sales to affiliates and joint ventures through revenue and cost of sales. The change in accounting policy simplifies the presentation for downstream profit eliminations and has no cumulative impact on retained earnings. We have accounted for the change retrospectively in accordance with the requirements of US GAAP Accounting Standards Codification (“ASC”) 250 by restating the comparative period. For details of retrospective changes, refer to note 16 in the Financial Statements.

    Forward-Looking Information

    The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “anticipate”, “believe”, “expect”, “should” or similar expressions and include all information provided under the above heading “NACG’s Outlook”.

    The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and nine months ended September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.

    Non-GAAP Financial Measures

    This press release presents certain non-GAAP financial measures because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity. The non-GAAP financial measures we present include “adjusted EBIT”, “adjusted EBITDA”, “adjusted EBITDA margin”, “adjusted EPS”, “adjusted net earnings”, “capital additions”, “capital work in progress”, “cash provided by operating activities prior to change in working capital”, “combined gross profit”, “combined gross profit margin”, “equity investment EBIT”, “free cash flow”, “general and administrative expenses (excluding stock-based compensation)”, “gross profit margin”, “growth capital”, “margin”, “net debt”, “sustaining capital”, “total capital liquidity”, “total combined revenue”, and “total debt”. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer’s historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each non-GAAP financial measure used in this press release is defined and reconciled to its most directly comparable GAAP measure in the “Non-GAAP Financial Measures” section of our Management’s Discussion and Analysis filed concurrently with this press release.

    Reconciliation of total reported revenue to total combined revenue

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024   2023(ii)     2024   2023(ii)
    Revenue from wholly-owned entities per financial statements   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Share of revenue from investments in affiliates and joint ventures     144,574       168,667       382,789       516,637  
    Elimination of joint venture subcontract revenue     (64,276 )     (90,791 )     (200,395 )     (277,369 )
    Total combined revenue(i)   $ 367,155     $ 274,757     $ 1,042,591     $ 875,666  

    (i)See “Non-GAAP Financial Measures”.
    (ii)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.


    Reconciliation of reported gross profit to combined gross profit

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024
      2023(ii)     2024
      2023(ii)
    Gross profit from wholly-owned entities per financial statements   $ 65,098     $ 26,518     $ 168,057     $ 89,213  
    Share of gross profit from investments in affiliates and joint ventures     15,317       11,486       37,172       40,968  
    Combined gross profit(i)   $ 80,415     $ 38,004     $ 205,229     $ 130,181  

    (i)See “Non-GAAP Financial Measures”.
    (ii)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.


    Reconciliation of net income to adjusted net earnings, adjusted EBIT, and adjusted EBITDA

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024     2023     2024     2023
    Net income   $ 13,901     $ 11,387     $ 39,277     $ 45,495  
    Adjustments:                
    Loss (gain) on disposal of property, plant and equipment     348       (311 )     641       189  
    Write-down on assets held for sale                 4,181        
    Stock-based compensation (benefit) expense     1,332       5,583       3,081       16,324  
    Change in fair value of contingent obligation from adjustments to estimates     17,727             26,585        
    Restructuring costs                 4,517        
    Acquisition costs           1,161             1,161  
    Loss on equity investment customer bankruptcy claim settlement                       759  
    Loss (gain) on derivative financial instruments     572       (2,618 )     845       (6,979 )
    Net unrealized loss (gain) on derivative financial instruments included in equity earnings in affiliates and joint ventures     1,836       572       2,806       (649 )
    Tax effect of the above items     (4,463 )     (1,479 )     (8,972 )     (4,240 )
    Adjusted net earnings(i)     31,253       14,295       72,961       52,060  
    Adjustments:                
    Tax effect of the above items     4,463       1,479       8,972       4,240  
    Increase in fair value of contingent obligation from interest accretion expense     4,262             12,360        
    Interest expense, net     15,003       8,119       44,939       22,941  
    Income tax expense     6,768       1,733       16,325       11,892  
    Equity earnings in affiliates and joint ventures(iii)     (4,428 )     (4,277 )     (9,545 )     (22,963 )
    Equity investment EBIT(i)(iii)     4,365       3,983       7,152       23,307  
    Adjusted EBIT(i)     61,686       25,332       153,164       91,477  
    Adjustments:                
    Depreciation and amortization     38,662       28,884       122,844       90,239  
    Write-down on assets held for sale                 (4,181 )      
    Equity investment depreciation and amortization(i)     6,036       5,155       14,689       14,111  
    Adjusted EBITDA(i)   $ 106,384     $ 59,371     $ 286,516     $ 195,827  
    Adjusted EBITDA margin(i)(ii)     29.0 %     21.6 %     27.5 %     22.4 %

    (i)See “Non-GAAP Financial Measures”.
    (ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
    (iii)The prior year amounts are adjusted to reflect a change in presentation. See “Accounting Estimates, Pronouncements and Measures”.


    Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024   2023(ii)     2024   2023(ii)
    Equity earnings in affiliates and joint ventures   $ 4,428     $ 4,277     $ 9,545     $ 22,963  
    Adjustments:                
    Interest (income) expense, net     (618 )     (742 )     (1,337 )     (915 )
    Income tax expense     738       448       (698 )     1,294  
    Loss (gain) on disposal of property, plant and equipment     (183 )           (358 )     (35 )
    Equity investment EBIT(i)   $ 4,365     $ 3,983     $ 7,152     $ 23,307  

    (i)See “Non-GAAP Financial Measures”.
    (ii)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.


    About the Company

    North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Canada, the U.S. and Australia. For 70 years, NACG has provided services to the mining, resource and infrastructure construction markets.

    For further information contact:

    Jason Veenstra
    Chief Financial Officer
    North American Construction Group Ltd.
    (780) 960-7171
    IR@nacg.ca
    www.nacg.ca

    Interim Consolidated Balance Sheets

    (Expressed in thousands of Canadian Dollars)
    (Unaudited) 

        September 30,
    2024
      December 31,
    2023
    Assets        
    Current assets        
    Cash   $ 77,670     $ 88,614  
    Accounts receivable     158,179       97,855  
    Contract assets     16,128       35,027  
    Inventories     77,150       64,962  
    Prepaid expenses and deposits     8,477       7,402  
    Assets held for sale     7,355       1,340  
          344,959       295,200  
    Property, plant and equipment, net of accumulated depreciation of $474,655 (December 31, 2023 – $423,345)     1,235,447       1,142,946  
    Operating lease right-of-use assets     13,404       12,782  
    Investments in affiliates and joint ventures     85,192       81,435  
    Other assets     5,082       7,144  
    Intangible assets     10,052       6,971  
    Total assets   $ 1,694,136     $ 1,546,478  
    Liabilities and shareholders’ equity        
    Current liabilities        
    Accounts payable   $ 123,110     $ 146,190  
    Accrued liabilities     47,724       72,225  
    Contract liabilities     300       59  
    Current portion of long-term debt     94,485       81,306  
    Current portion of contingent obligations     37,601       22,501  
    Current portion of operating lease liabilities     1,852       1,742  
          305,072       324,023  
    Long-term debt     723,487       611,313  
    Contingent obligations     101,752       93,356  
    Operating lease liabilities     12,010       11,307  
    Other long-term obligations     41,768       41,001  
    Deferred tax liabilities     118,133       108,824  
          1,302,222       1,189,824  
    Shareholders’ equity        
    Common shares (authorized – unlimited number of voting common shares; issued and outstanding – September 30, 2024 – 27,827,282 (December 31, 2023 – 27,827,282))     229,455       229,455  
    Treasury shares (September 30, 2024 – 996,435 (December 31, 2023 – 1,090,187))     (15,809 )     (16,165 )
    Additional paid-in capital     22,524       20,739  
    Retained earnings     154,398       123,032  
    Accumulated other comprehensive income (loss)     1,346       (407 )
    Shareholders’ equity     391,914       356,654  
    Total liabilities and shareholders’ equity   $ 1,694,136     $ 1,546,478  

    Interim Consolidated Statements of Operations and
    Comprehensive Income

    (Expressed in thousands of Canadian Dollars, except per share amounts)
    (Unaudited) 

        Three months ended   Nine months ended
        September 30,   September 30,
          2024   2023(i)     2024   2023(i)
    Revenue   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Cost of sales     183,405       141,771       570,222       457,856  
    Depreciation     38,354       28,592       121,918       89,329  
    Gross profit     65,098       26,518       168,057       89,213  
    General and administrative expenses     10,945       12,485       36,630       38,638  
    Loss (gain) on disposal of property, plant and equipment     348       (311 )     641       189  
    Operating income     53,805       14,344       130,786       50,386  
    Equity earnings in affiliates and joint ventures     (4,428 )     (4,277 )     (9,545 )     (22,963 )
    Interest expense, net     15,003       8,119       44,939       22,941  
    Change in fair value of contingent obligations     21,989             38,945        
    Loss (gain) on derivative financial instruments     572       (2,618 )     845       (6,979 )
    Income before income taxes     20,669       13,120       55,602       57,387  
    Current income tax expense     2,238       1,495       5,003       3,198  
    Deferred income tax expense     4,530       238       11,322       8,694  
    Net income   $ 13,901     $ 11,387     $ 39,277     $ 45,495  
    Other comprehensive income                
    Unrealized foreign currency translation (gain) loss     (1,115 )     1,100       (1,753 )     1,462  
    Comprehensive income   $ 15,016     $ 10,287     $ 41,030     $ 44,033  
    Per share information                
    Basic net income per share   $ 0.52     $ 0.43     $ 1.47     $ 1.72  
    Diluted net income per share   $ 0.47     $ 0.39     $ 1.32     $ 1.51  

    (i)The prior year amounts are adjusted to reflect a change in accounting policy. See “Accounting Estimates, Pronouncements and Measures”.

    The MIL Network

  • MIL-OSI: North American Construction Group Ltd. Announces Normal Course Issuer Bid

    Source: GlobeNewswire (MIL-OSI)

    ACHESON, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA/NYSE:NOA) today announced that it intends to commence a normal course issuer bid (the “NCIB”) to purchase, for cancellation, up to 2,087,577 common shares in the capital of the Company (“Common Shares”), which represents approximately 10% of the public float (as defined in the TSX Company Manual) and approximately 7.5% of the issued and outstanding Common Shares as of October 24, 2024. As at October 24, 2024, the Company had 27,827,282 Common Shares issued and outstanding.

    Purchases of Common Shares under the NCIB may be made through the facilities of the Toronto Stock Exchange (“TSX”), the New York Stock Exchange (“NYSE”) and alternative trading systems in Canada and the United States by means of open market transactions or by such other means as may be permitted under applicable securities laws. Under the NCIB, and in order to comply with applicable securities laws, the Company will purchase a maximum of 1,391,364 Common Shares (or approximately 5% of the issued and outstanding voting common shares) on the NYSE and alternative trading systems.

    The Company believes that the current market price of its Common Shares does not fully reflect their underlying value and that current market conditions provide opportunities for the Company to acquire Common Shares at attractive prices. In the Company’s view, a repurchase of Common Shares would be an effective use of its cash resources and would be in the best interests of the Company and its shareholders. The Company believes that it would both enhance liquidity for shareholders seeking to sell and provide an increase in the proportionate interests of shareholders wishing to maintain their positions.

    The NCIB is expected to commence on or about November 4, 2024 and will terminate no later than November 3, 2025. All purchases of Common Shares will be made in compliance with applicable TSX and NYSE rules. The average daily trading volume of the Common Shares on the TSX for the six calendar months preceding October 1, 2024 is 62,910 Common Shares. In accordance with the TSX rules and subject to the exemption for block purchases, a maximum daily repurchase of 25% of this average may be made, representing 15,727 Common Shares. The price per Common Share will be based on the market price of such shares at the time of purchase in accordance with regulatory requirements.

    About NACG
    NACG is one of Canada and Australia’s largest providers of heavy construction and mining services. For over 70 years, NACG has provided services to mining, resource, and infrastructure construction markets.  

    Jason Veenstra, CPA, CA
    Chief Financial Officer
    P: 780.960.7171
    E: ir@nacg.ca

    The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “expected”, “estimated” or similar expressions, including the anticipated revenues and backlog to be generated by the contract. The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject are highlighted in the Company’s MD&A for the year ended December 31, 2023 and quarter ending September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.

    The MIL Network

  • MIL-OSI New Zealand: Understanding Policing Delivery phase two research published

    Source: New Zealand Police (National News)

    Today Police and the Understanding Policing Delivery (UPD) Independent Panel have released a report, Kia Tika Ai, Kia Tōkeke Ai: Make Fair and Just Decisions, which summarises the phase two research of UPD.

    Police Commissioner Andrew Coster says he is pleased to have been able to see this important work through from the beginning to the end.

    “A number of recommendations have come out of this report and the earlier one (released in August).

    “Police has already accepted a number from the first report.

    “Whilst this new report will be for the incoming Commissioner and Executive to consider, the recommendations are broadly in line with work already underway in Police across a range of different work programmes.

    “I want to thank our staff and communities for taking part and sharing their honest and vulnerable experiences.

    “We know our staff are dealing with individuals every day who may have their own struggles, issues, addictions, or complex needs.

    “I know our people work very hard to provide the best response in every circumstance.

    “This research has shown the value in pursuing a deeper understanding of ourselves and all the communities we serve.” 

    The Panel identified the following themes across the phase two UPD research:

    • Authentic and collaborative community and policing innovations are making a difference

    • Systems, processes and cumulative experiences are getting in the way of fair and equitable policing for all communities

    • Some incidents of unprofessional conduct were reported

    • Being under-served, seen as undeserving, or being treated unfairly by police, is harmful.

    “This is not a barometer of policing in New Zealand but an in-depth look at what works, and what is not working.

    “We wanted to see policing from some of the perspectives and experiences of people in marginalised communities.”

    Tā Kim Workman, Pou Ārahi and the first chair of the UPD Independent Panel says if there is one thing that stands out for him, it is the way the Police engaged in this research.

    “The remarkable foresight and courage of Commissioner Coster in initiating this work will mark him out historically.

    “What was even more remarkable was the preparedness of frontline staff to engage in the fairness and equity conversation.

    “No other police jurisdiction has managed to get that level of Police staff cooperation.

    “This was not research about the Police – it was research with the Police.

    “That preparedness to have ‘difficult conversations’ explains why we arguably have the most progressive Police service in the world.”

    The phase one research gave an indication of what the inequities were and who experienced them through an analysis of existing Police data.

    In phase two, the qualitative approach provided insights into how these inequities are experienced by different communities and Police, including their impacts and what would make the difference.

    This includes tangible ways forward towards fairer and more equitable policing and examples of where this is already happening.

    The phase two research included engagement with tāngata whaikaha, D/deaf and disabled people, wāhine Māori who experience family harm, people who have experienced significant mental distress, Takatāpui and members of the rainbow community, gang whānau and some Police sites of innovation.

    A deliberate focus was on gathering voices not typically heard.

    UPD Independent Panel Chairperson Professor Khylee Quince says our researchers deliberately sought to hear the good and the bad of policing.

    “Some of the experiences shared by community members in encounters with Police will be confronting to hear, and we thank them for their courage in coming forward.

    “The researchers also heard of good Police practice across various sites of innovation around Aotearoa.

    “Together these insights support our recommendations – that Police do more of what leads to fair and equitable policing, and less of what does not align with Police values, the upholding of human rights and their obligations under Te Tiriti o Waitangi.

    “The Panel looks forward to the acceptance of this research by Police and the implementation and oversight of its recommendations under the incoming Police leadership team.”

    Notes to media

    This report makes eleven recommendations that build on the forty recommendations from the first phase research. The phase two recommendations are summarised below:

    1. Value relational ways of working with communities and police-experienced whānau to provide more effective solutions

    2. Amplify Māori and community-led local collaborations, where the Police play a supporting, enabling and resourcing role

    3. Introduce a practising certificate for all police officers, supported by ongoing professional development

    4. Further enhance Police training on de-escalation, history, Māori and other cultural responses and disability rights and disability justice to empower Police Officers

    5. Embed an organisational learning approach across the Police and lead out from the top

    6. Commit to regular analysis and public reporting on levels of service delivery and equity for Māori and marginalised communities

    7. Build on the Police Disability Roadmap to embed disability and mental health responsive policing model as standard

    8. Introduce independent governance and monitoring for all uses of TASER on people with existing health and disability conditions, children under 18, older people, and those in secure units, to ensure safe practice

    9. Work with disabled people and whānau to record relevant individual information as a flag in NIA to support positive and effective engagement

    10. Monitor and evaluate local and national innovative programmes and collaborations with iwi, communities and other agencies to scale what works

    11. Build on the existing Āwhi programme to ensure Police Officers can, and do, act as a conduit to community and specialist supports and services.

    The report can be viewed here.

    ENDS

    Issued by Police Media Centre

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Affordable housing project supporting home ownership

    Source: New Zealand Government

    Up to 300 affordable, healthy, community-tailored homes helping to support home ownership are set to be built in eastern Porirua, supported by Government funding for Our Whare Our Fale through the Building Homes for Pacific in Porirua initiative, Minister for Pacific Peoples Dr Shane Reti and Associate Housing Minister Tama Potaka say. 

    The blessing of the whenua and the groundbreaking ceremony took place today in Cannons Creek, with attendees from Pasefika communities, government, and members of local iwi Ngāti Toa Rangatira and Central Pacific Collective (CPC).

    “This is a fantastic initiative that is helping address housing needs in our communities,” Dr Reti says.

    “I am pleased that it’s achieving this in a way that transcends just providing housing, through designs that will strengthen communities and an initiative that will help people to purchase homes,” adds Mr Potaka.

    The project, led in partnership by Central Pacific Collective and Ngāti Toa Rangatira, was allocated $114.611 million in government funding in 2022, managed by the Ministry for Pacific Peoples. 

    The housing and the spaces, inspired by Pacific villages and cultures, are intended to promote connection and belonging through community support and collective living.

    The builds focus on promoting better health outcomes among Pacific peoples and factor in environmental sustainability.

    Affordability is being ensured through several features:

    • The land in eastern Porirua is being leased into perpetuity from Ngāti Toa, removing land costs from the purchase price. 
    • CPC is the developer, with houses built at cost and margins not passed on to the buyers.
    • The project benefits from scale, minimising costs from suppliers, and keeping costs down through innovation and partnerships.
    • CPC offers a shared equity scheme making it easier for households to raise a deposit and service housing costs.

    Building for the first 18 homes will commence tomorrow on 1 November, following the turning of the first sod, and construction is expected to be completed in 2025.

    Resource consent for the following two sites is underway.

    “I want to acknowledge Central Pacific Collective, Te Rūnanga o Toa Rangatira, Ministry for Pacific Peoples and Kāinga Ora in coming together to support better housing outcomes in our communities,” says Dr Reti.

    “This is an exciting development that ultimately will improve the lives of families, ease the cost of living, and improve outcomes in communities while we continue to help rebuild the economy, build more houses, and grow the economy for the benefit of New Zealanders.”

    MIL OSI New Zealand News

  • MIL-OSI USA: Kishida’s legacy: Scandals and compromise at home, global respect for security and diplomacy – AP

    Source: United States Institute of Peace

    TOKYO (AP) — Japanese Prime Minister Fumio Kishida will step down Tuesday, handing over leadership to his successor Shigeru Ishiba,…

    TOKYO (AP) — Japanese Prime Minister Fumio Kishida will step down Tuesday, handing over leadership to his successor Shigeru Ishiba, who is expected to formally take office later in the day. He says he plans to call a snap election for Oct. 27.

    Kishida’s popularity ratings were precarious during most of his three-year term due to damaging corruption scandals that eventually led him to bow out.

    At home, Kishida was seen as a leader without a vision who compromised with powerful conservative nationalists within the ruling Liberal Democratic Party to stay in power. But he has won respect outside Japan, especially from the United States, for pushing bold changes in Japanese defense and security policies and for standing tougher against Russia and China.

    Here is a lookback at Kishida’s leadership and his legacy:

    Distress at home

    After taking office in October 2021, Kishida made a number of major decisions, such as reversing Japan’s nuclear energy phase-out and pursuing a rapid military buildup. But he avoided controversial social issues related to gender and sexual diversity. As head of a smaller faction in the ruling party, his top priority appeared to be keeping a stable grip on power by avoiding clashes with members of the Liberal Democrats’ powerful conservative group, led by the late Prime Minister Shinzo Abe.

    Abe’s assassination in July 2022 and subsequent major corruption scandals linked to Abe’s faction members left constantly in damage control mode, as his support ratings tumbled. Kishida himself narrowly escaped an explosives attack during a speech at a fishing port in western Japan’s Wakayama in April, 2023.

    Investigations into Abe’s assassination led to revelations of the Liberal Democrats’ decades-long links to South Korea’s Unification Church. That was followed by a more damaging corruption scandal involving more than 80 LDP lawmakers, again mostly in Abe’s faction, involving illegal slush funds.

    Several lawmakers, their aides and accountants were indicted in that scandal.

    Kishida led internal probes and moved to reform and tighten political funding laws, but opposition lawmakers and voters viewed the measures as inadequate.

    Public outrage over the slush funds scandal has caused the LDP to lose a few local elections this year and lawmakers within the party called for a fresh face to shake off the scandals in order to win the next national election.

    Kishida ends his term as a kingmaker who could remain influential behind the scenes after he helped lift Ishiba to a come-from-behind victory in the party’s vote on Friday against staunch conservative Sanae Takaichi.

    Stronger defense

    Kishida, who long served as foreign minister under Abe, has won respect for his national security and foreign policies that significantly deepened ties with the United States and other partners such as Australia, the U.K., South Korea and the Philippines, while elevating the country’s international profile.

    In December 2022, Kishida’s government adopted a security and defense strategy involving a rapid buildup of Japan’s military power to acquire a “counter-strike” capability with long-range cruise missiles, a major break from Japan’s post-World War II self-defense-only principle.

    Kishida’s government set a five-year goal to double Japan’s military spending to nearly 2% of GDP, eventually to about 10 trillion yen ($70 billion), making it the world’s third biggest spender after the United States and China. But it’s unclear how Japan will fund that spending and balance it against other urgent needs such as coping with the country’s shrinking population.

    In December, Kishida substantially eased Japan’s weapons export rules, allowing licensing of Japanese-made PAC-3 missile interceptors to the United States and future foreign sales of fighter jets that Japan is developing with the U.K. and Italy.

    Kishida quickly joined other G7 countries in sanctioning Russia and supporting Ukraine. He has repeatedly said “Ukraine today may be East Asia tomorrow,” comparing the Russian invasion of Ukraine to China’s growing assertiveness in the Asia-Pacific region. He has worked on strengthening economic and security cooperation in the region.

    “Although Kishida’s successes on foreign affairs were overshadowed by domestic political scandals involving his Liberal Democratic Party, as well as lackluster economic growth, he oversaw increases in Japan’s reputation and popularity in the region and globally, as well as the institutionalization of related partnership gains,” Mirna Galic, a senior policy analyst at the U.S. Institute of Peace, wrote in a recent article.

    Better ties with South Korea

    One of Kishida’s diplomatic successes was Japan’s improved ties with South Korea, especially in regional security and in ties with their mutual ally, the United Sates, due to shared concerns about China and North Korea.

    Kishida, under pressure from Washington and with support from South Korean President Yoon Suk Yeol, helped mend ties between the two Asian neighbors that have suffered over Japan’s colonial-era legacy of colonialism and atrocities. Stable relations are key to the U.S.-led united front in the Pacific.

    In April, Kishida made a state visit to Washington and spoke to Congress, stressing Japan’s determination to stand by America as a global partner. In 2023, President Joe Biden invited him to a trilateral summit at Camp David with Yoon where they agreed to strengthen their trilateral security framework.

    When Kishida announced in August his plans to step down, Biden lauded Kishida’s leadership, saying he had helped take the U.S.-Japan alliance “to new heights.”

    “Guided by unflinching courage and moral clarity, Prime Minister Kishida has transformed Japan’s role in the world,” Biden said in a statement. Kishida’s “courageous leadership will be remembered on both sides of the Pacific for decades to come,” he said.

    Kishida also recently helped work out a deal with Beijing to lift a Chinese ban on imports of Japanese seafood that Beijing imposed due to Japan’s release of treated radioactive wastewater into the Pacific from its wrecked Fukushima Daiichi nuclear power plant. Tensions over China’s military activity near Japanese water and airspace persist.

    He also deepened ties with Southeast Asian countries, the Pacific Island nations as well as so-called Global South developing countries.

    G7 Hiroshima and nuclear disarmament

    Kishida represents a constituency in Hiroshima and hosting a summit of the Group of Seven wealthy nations in the city in May 2023 was a highlight of his time in office aligned with his career goal of working toward a world free of nuclear weapons.

    However, the G7 summit statement on nuclear disarmament defended the possession of nuclear weapons as a deterrence, disappointing and angering survivors of the U.S. 1945 atomic bomb attack.

    Kishida says he adheres to Japan’s principles of not developing, possessing or allowing the deployment of nuclear weapons in its territory. Ishiba, a former defense minister, has advocated deepening a discussion among regional partners about the U.S. nuclear deterrence strategy.

    “New Capitalism” never took off

    Kishida espoused a “new capitalism” economic strategy calling for more equitable distribution of national wealth, an alternative to Abe’s heavy government spending and hyper-easy monetary policy. Neither policy has managed to get flagging growth back on track.

    Kishida’s defense and childcare policies would require big spending and the wage hikes he supported failed to keep pace with price increases.

    Government moves to try to reverse Japan’s falling birth rate involved mostly childcare allowances for married couples and didn’t address the problems of the growing number of young Japanese reluctant to marry and start families due to bleak job prospects, the high cost of living and a corporate culture that is unfriendly to working mothers.

    Copyright © 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

    MIL OSI USA News

  • MIL-OSI USA: The Evolving Threat of ISKP – Caspian Tides Podcast

    Source: United States Institute of Peace

    Welcome to Caspian Tides, the Caspian Policy Center’s new monthly podcast unpacking the major issues facing the South Caucasus and Central Asia.

    On our inaugural episode, we delve into Islamic State – Khorasan Province, the Afghanistan-based offshoot of the Islamic State. In recent months, ISKP has grabbed major headlines not only for attacks conducted within Afghanistan, but also for major attacks in Iran, Russia, and Europe. What distinguishes ISKP from other terror groups and how does it interact with Central Asia? To answer these questions and more, we welcome our expert guests, Dr. Tricia Bacon of American University and Dr. Gavin Helf of the United States Institute of Peace.

    MIL OSI USA News

  • MIL-OSI USA: The Pig Butchering Invasion Has Begun – Wired

    Source: United States Institute of Peace

    Scam compounds have also been broken up in Peru and Sri Lanka. And there has even been alleged trafficking in truly unexpected places like the Isle of Man, a British territory where almost 100 people were working between 2022 and 2023 as part of a pig butchering operation, according to a BBC investigation from August.

    “The People’s Republic of China–origin criminal groups that are behind these sophisticated forms of scamming are looking to build networks and hubs all around the globe simply because this is so lucrative,” says Jason Tower, the country director for Burma and a long-time security analyst covering China and Southeast Asia at the United States Institute of Peace.

    Pig butchering scam centers rely upon multiple layers of criminality to operate, encompassing the recruitment of trafficked people, running scam centers on a day-to-day basis, the development of technology to scam thousands of people, and the sophisticated money laundering required to process billions of dollars. As Chinese authorities have cracked down on Chinese-speaking criminal organizations operating scam centers across Southeast Asia, the groups have likely continued to spread their operations, albeit at a smaller scale.

    “I would say it was an intentional hedging strategy, seemingly to diversify the geographic basis of operation and ultimately ensure business continuity,” says John Wojcik, an organized crime analyst at the United Nations Office on Drugs and Crime. “But at the same time, I think it’s also an immediate reaction to mounting law enforcement pressure and regulatory tightening in this region.”

    In addition to the geographic spread of pig butchering operations, researchers note that there has also been a shift in the people targeted by traffickers to “work” in scam compounds. “Over the past two years, the countries targeted for recruitment have gradually shifted westward,” says Eric Heintz, a global analyst at human rights organization International Justice Mission.

    Many trafficking victims within the early years of pig butchering were based in Southeast Asian countries, but this soon shifted to South Asian nations such as India and Nepal, Heintz says. “We have since seen recruitment posts targeting East African nations like Kenya and Uganda, and then West African countries like Morocco, and then, most recently, we have seen posts targeting El Salvador.”

    As always, the spread and evolution of pig butchering is driven by how profitable it can be. Researchers say that another alarming trend involves people from around the world choosing to go work in scam centers or even being liberated from forced labor and returning to keep working voluntarily. As long as the money keeps coming in, pig butchering will keep spreading around the world.

    “Fraud is not being seen as a serious crime—not like drugs, not like terrorism,” Humanity Research Consultancy’s Chiang says. “Globally, we need to start shifting that idea, because it creates the same kind of damage, and maybe even more because the amount of money we’re talking about is so huge. We are racing against time.”

    MIL OSI USA News

  • MIL-OSI New Zealand: Louise Upston cherry-picks data to punch down on the poor

    Source: Green Party

    The Government has very conveniently cherry-picked data from the latest MSD projections to justify its cruel agenda and punch-down policy when it comes to people living in poverty. 

    “Poverty is a political choice this Government is choosing for our communities,” says the Green Party’s social development spokesperson, Ricardo Menéndez March.

    “We can choose to look after each other and ensure everyone has enough to get by and that nobody gets left behind. The solutions exist and they are right at our fingertips, all that is missing is the political will. 

    “The Government has failed to show any interest in ending poverty and has instead made excuses to make it worse. Today, Minister Upston has conveniently omitted that the latest projections by MSD show that people who have been hospitalised, been in prison, suffered from poor mental health, or have previously experienced housing insecurity are more likely to need a benefit for longer.

    “The Government has turned its back on people living in poverty as well as the overwhelming evidence that shows punching down on people with benefit sanctions will fail to get them into work and only push them deeper and deeper into poverty. 

    “Instead of working to address the underlying drivers of the insecurities that push people towards needing the benefit, Minister Upston has instead chosen to belittle those in need with benefit sanctions. This is tried, tested and failed policy proven to not help people into work but instead trap them in poverty. 

    “Cruelty is the point here, not supporting people into employment. The data the Minister is leaning on does not justify or support the use of sanctions. The data is clear that the current economic conditions, coupled with young people not having their basic needs met are a big factor for people experiencing barriers to employment. 

    “This is why the Greens will end poverty by introducing a guaranteed minimum income, paid for by a fairer tax system, instead of doubling down on policies that do not support young people’s aspirations.

    “Instead of cherry-picking data, the Government should step up and actually support our communities, rather than find excuses to tear them down,” says Ricardo Menéndez March.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: 31 October 2024 Christchurch customers connect over kai Fried rice and pita bread pizzas were just some of the culinary delights on the menu when tenants at a Kāinga Ora complex in Christchurch took part in a free course that offers tips on how to cook on a budget.

    Source: New Zealand Government Kainga Ora

    Alex, who shared his story earlier this year about living in the complex, has been working with Kāinga Ora Community Development Manager Amanda to look at ways of bringing tenants together in the community room downstairs.

    As part of this, Amanda, with Alex’s help, organised for charitable organisation Kingdom Resources to run its Christchurch-based ‘Money and Kai’ programme, which focuses on things such as menu planning and easy meal preparation.

    Christchurch tenant Colin, with Jacinta from Kingdom Resources, whips up a pita bread pizza.

    Tenants got together in the community room every Wednesday for four weeks, making the most of the chance to learn about making affordable, tasty meals from scratch before sharing the kai they had made with each other. At one of the sessions, Alex also shared with other residents how he shops and eats on a budget.

    Alex says he’s enjoying helping Amanda to bring everyone together and the “Money and Kai’ course has given him, and the other tenants, a real boost.

    “Having this home and the sense of purpose of working with Amanda to support and encourage my neighbours to get involved has helped me too, saved my life really.  The course has been very educational and everyone seems uplifted from learning together. It’s increased their mana.

    “I’ve also been able to share the budget learnings and recipes with my friends and family, which is nice,” Alex says.

    Jacinta from Kingdom Resources says it was great to see Kāinga Ora tenants enjoying each other’s company and sharing ideas on how to eat well within a budget. “That’s what this course is all about. People saying, ‘I have knowledge, and you have knowledge and how can we make it easier for each other,” she says.

    Page updated: 31 October 2024

    MIL OSI New Zealand News

  • MIL-OSI USA: Heliostat Consortium Delivers New Tools To Ensure Quality of Precision Mirrors and Support the Concentrating Solar Industry

    Source: US National Renewable Energy Laboratory

    HelioCon’s 2024 Annual Report Details Its Advancement of a Technique To Improve Heliostat Accuracy and the Launch of an Open-Source CSP Platform


    Maintenance workers drive between the heliostats at the Ivanpah concentrating solar energy plant, where mirrors track the sun and reflect sunlight to boiler receivers on power towers. When the concentrated sunlight strikes the boiler pipes, it heats the water to create superheated steam. Photo by Dennis Schroeder, NREL

    Large mirrors that track the sun to concentrate and capture thermal energy—heliostats—are a core component of every power-tower concentrating solar power (CSP) plant around the world. But the sheer variety of shapes, sizes, and configurations of these giant mirrors has created the need for new, adaptable testing and calibration methods, both on the assembly line and in the field, to maximize the potential output of these precision devices.

    The newly released HelioCon 2024 Annual Report highlights a host of new advances toward improving the cost and performance of heliostats, including a universally adaptable heliostat quality-control tool developed at the National Renewable Energy Laboratory (NREL) and an open-source platform developed at Sandia National Laboratories to share data, code, and workforce educational tools for the global CSP community.

    “HelioCon has made tremendous progress on developing, maturing, and validating third-party evaluation and testing capabilities to make them ready for industry,” said Guangdong Zhu, HelioCon executive director and a senior researcher at NREL. “This is exactly what the industry needs right now.”

    The U.S. Department of Energy Solar Energy Technologies Office (SETO) funds the Heliostat Consortium for CSP (HelioCon), which is coled by NREL and Sandia, along with core members at the Australian Solar Thermal Research Institute (ASTRI). HelioCon was founded in 2021 with a mission to develop and promote heliostat-based CSP technologies in the United States and advance the techno-economic performance of heliostats. Lowering the cost of producing, operating, and maintaining heliostats would ultimately lower the overall costs for CSP systems, which can provide clean long-duration energy storage and low-cost thermal energy for dispatchable electricity generation and high-heat industrial processes that have been difficult to decarbonize.

    “Concentrating solar has a unique role to play in our clean energy future,” said Matthew Bauer, SETO’s CSP program manager. “Not only can CSP complement other clean energy sources by providing long-duration energy storage, but it can also supply the high temperatures that tough-to-electrify industrial processes require. Heliostats are a key to lowering the overall costs of all of these applications, so improving heliostats can boost a range of decarbonization strategies.”

    Heliostats and a solar power tower operate at the Ivanpah CSP plant in California. Photo by Dennis Schroeder, NREL

    The consortium’s online and in-person engagement efforts at seminars, events, and an annual workshop led to a growth spurt in 2024. HelioCon now includes 16 member institutions and more than 100 researchers, and it has developed partnerships with universities to prepare college students for work in the CSP field. HelioCon also awarded six new projects that are focused on workforce development, heliostat controls, and deployment, for a total of $3 million in its second-round funding request.

    The HelioCon 2024 Annual Report details members’ advances in preparing metrology, measurement, and heliostat control tools for commercial readiness. These advances include a solar field closed-loop wireless control system, Non-Intrusive Optical (NIO) characterization tools, the Solar Optical Fringe Alignment Slope Technique (SOFAST), and composite mirror facets assessment. The report also announced that two major HelioCon projects are now being tested by industry partners:

    ReTNA: An Adaptable Commercial Quality-Control Tool for Heliostat Manufacturers

    An employee runs diagnostics on heliostats at the Crescent Dunes Solar Energy Project CSP facility. Photo by Dennis Schroeder, NREL

    To tackle the question of how manufacturers can check the optics of heliostats before they are deployed in the field, NREL researchers used an existing tool they developed for testing heliostats outdoors—NIO measurement—as a starting point for developing a new measurement method for indoor use. The team, led by NREL researcher Devon Kesseli, set specifications to make the new optical measurement tool useful to industry: Regardless of the size and shape of the heliostats, the tool should be low cost, require minimal setup, measure a heliostat in less than a minute, and use the available lighting along the production line in a warehouse or laboratory.

    Reflected Target Non-Intrusive Assessment (ReTNA) measures slope and canting in heliostats by deflectometry, or deflected reflection, with a commercially available camera. The camera captures images of a printed target panel that can be mounted to a wall or even the ceiling, and computer vision stitches together multiple reflected images of the patterned target to create a precision measurement of each mirror. Because ReTNA is so easily adaptable, the tool can measure the surface slope and facet canting of heliostats of various sizes and in any orientation along an assembly line.

    Development of ReTNA under HelioCon began in 2022, and in 2024 it completed its proof-of-concept phase. ReTNA is now undergoing further testing by the consortium’s commercial partners.

    OpenCSP: An Open-Source Platform for Code and Data Sharing and Workforce Development

    Workers monitor system operations at Ivanpah’s control room. Photo by Dennis Schroeder, NREL

    At the 2024 SolarPACES conference in October, HelioCon researcher Randy Brost, who leads the Optics Lab team at Sandia National Laboratories, announced the public launch of OpenCSP, an open-source platform that will serve as a collaborative environment where the CSP community can share code, data, and computer-aided design models, as well as tools for workforce education.

    Designed to grow as a repository of information, OpenCSP launched with a number of tools and datasets already in place, including optical targets for heliostat metrology testing and Sandia’s SOFAST 2.0 code in Python. SOFAST is an adaptable, low-cost tool that can be used across the industry to create high-fidelity slope maps of concentrating solar mirrors.

    Read the full HelioCon 2024 Annual Report.

    Learn more about HelioCon’s research and outreach efforts and visit the NREL CSP and Sandia CSP sites.

    MIL OSI USA News

  • MIL-OSI Global: What the Thai cave rescue can teach us about unconventional leadership

    Source: The Conversation – Canada – By Amélie Cloutier, Professor of Strategy and Innovation, Université du Québec à Montréal (UQAM)

    Leadership can emerge from unexpected places, especially during times of crisis. One such example occurred during the 2018 rescue of a group of 12 young soccer players and their coach, who were trapped in a cave in northern Thailand after heavy rains blocked their exit route.

    The 17-day rescue operation involved a co-ordinated response from thousands of people, including 2,000 soldiers, 200 divers and personnel from 100 government agencies. The success of the operation was largely due to an unconventional group of leaders: an international group of cave divers whose unique expertise was vital to the rescue effort.

    Our recent research on the rescue aimed to explore how leadership can emerge outside of the traditional chain of command. To do this, we analyzed a documentary and news coverage about the rescue, along with scientific literature and online searches, including LinkedIn profiles.

    We wanted to better understand development of leaders who don’t adhere to the stereotypical image of heroic or charismatic leaders. These atypical leaders challenge our conventional ideas about what a leader should look like, or how they should act.

    From advisers to leaders

    Tham Luang Nang Non is a cave located beneath Doi Nang Non, a mountain range on the border between Thailand and Myanmar. On June 23, 2018, a group of 12 boys from a local soccer team and their assistant coach became trapped in the cave after heavy rainfall blocked their way out.

    On June 25, Royal Thai Navy SEAL divers arrived and began searching the cave for the team, but the flooding made it impossible to locate them. Initially, civilian cave divers were brought in as advisers to the Navy SEALs. However, when the SEAL divers failed to locate the trapped team, the cave divers took the lead.

    On July 2, two divers from the British Cave Rescue Council found the group alive, and their roles shifted from being advisers to active participants in the rescue operation.

    Following the discovery, the Thai Navy SEAL divers attempted to reclaim their roles as primary rescuers, believing they had the ability to complete the mission. However, their overconfidence and underestimation of the challenges ahead led to a critical setback: those who reached the children were unable to return with them due to a lack of oxygen.

    With the situation worsening, the cave divers successfully persuaded the conventional leaders in place — Governor Narongsak Osatanakorn, Lt. Gen. Bancha Duriyapunt, Rear-Admiral Apakorn Youkongkaew and Capt. Anan Surawan — to allow them to take over the mission.

    The cave divers assembled a new team of expert cave divers from around the world. The extraction began on July 8, and by July 10, everyone had been rescued.

    The ‘Rudolph Effect’

    The rescue operation demonstrates how individuals with specialized skills and social capital can step up to lead effectively, even in the most challenging situations.

    Before the rescue, many viewed cave diving as odd, and even abnormal. In the documentary The Rescue, cave diver Josh Bratchley acknowledged that being in a pitch-black cave underwater is “probably some people’s worst nightmares.” But for cave diver Jim Warny, “once I get underground, that all disappears.”

    For these self-described unconventional individuals, their love for cave diving and exploration serves as a form of escape and empowerment, while accepting that they stand apart from the norm.

    However, their knowledge of navigating cold and dark waters underground, combined with their capital within the cave diving community, made the cave divers effective leaders. This case study demonstrates how leadership can emerge unexpectedly, and how atypical skills like cave diving, if valued and encouraged, can lead to innovative solutions.

    In our study, we coined the term the “Rudolph Effect” to describe how outcasts and unconventional individuals can become key leaders when given opportunities. Like Rudolph the Red-Nosed Reindeer, the term’s namesake, these leaders can guide their teams through extreme situations effectively, using skills and perspectives that traditional leaders might not possess.

    Unconventional and trustworthy helpers can transform into leaders, leveraging their unique skills, knowledge and social capital to manage extreme situations. But this transformation is only possible if they have the chance to demonstrate their abilities.

    Cultivating unconventional leaders

    The need for these unique leaders isn’t limited to extreme situations. By highlighting an extreme example, we aim to show that managers should create more opportunities for unconventional thinkers to contribute, even in day-to-day situations.

    Managers should identify and nurture leadership potential in individuals from diverse backgrounds and experiences. By doing this, organizations can not only improve their ability to handle crises, but also widen their pool of potential leaders. This diversity strengthens companies, making them more resilient and adaptable when facing unexpected challenges.

    This case study serves as a reminder for managers to constantly reassess and adjust their resources to achieve their goals. In tough situations, it can be beneficial to bring in leaders who think outside the box.

    Managers should be aware of the unique skills and connections within their teams to identify these unconventional leaders during their risk planning. They should also have backup plans ready in case initial solutions prove ineffective.

    Amélie Cloutier receives funding from FRQSC.

    Andrew Webb receives funding from SSHRC and le Secrétaire du Conseil du Trésor du Québec.

    ref. What the Thai cave rescue can teach us about unconventional leadership – https://theconversation.com/what-the-thai-cave-rescue-can-teach-us-about-unconventional-leadership-233538

    MIL OSI – Global Reports

  • MIL-OSI New Zealand: Rooted in Education

    Source: Auckland Council

    Thanks to a generous $10,000 boost from the Howick Local Board, seven schools and early childcare centres in the area, are now thriving as active Garden To Table schools.

    Garden To Table is a school-based food and gardening programme and as a registered charity, they support schools and kura across Aotearoa, New Zealand, to take the learning out of the classroom and into the māra kai (garden) and the kīhini (kitchen).

    Across East Auckland, being a Garden To Table school gives students the opportunity to dig into hands-on activities, unleash their creativity, and grow lifelong skills – all while learning how cutting food waste can help them cultivate healthier, locally sourced food.

    Pakuranga Faith Baptist Kindergarten. L: tamariki harvesting vegetables from their garden to make kai. R: trolley made from rescued ‘waste’ materials, this is used for their Garden to Table ‘Harvest Table’ and equipment.

    Board chair Damian Light explains, “We’re proud to support this programme which delivers on a number of our strategic priorities, including promoting healthy living and sustainable lifestyles, reducing waste to landfill, and allowing people to connect with nature.”

    Funding was allocated for essential kitchen utensils and equipment, Garden To Table curriculum staff training and introductory sessions for programme champions, kitchen and garden specialists, as well as child-friendly aprons crafted by Sustainable Papakura volunteers.

    Howick Primary School: During a Garden to Table session, making pizza scrolls with lots of herbs from their garden.

    Ormiston Primary School teacher and programme champion Jenny Moon shares, “Our Garden To Table program has been a hit with the students. We’ve purchased kitchen equipment and composting bins. It’s wonderful to see them engage in planting, caring for the plants, and harvesting ingredients!”

    Students participating in Garden to Table Programmes:

    Name of School / ECE

    Number of students participating in Garden to Table

    Cockle Bay Primary School

    112

    Howick Primary

    311

    New Shoots Pakuranga

    40

    Ormiston Primary School

    50

    Mission Heights Primary School

    380

    Pakuranga Heights Primary School

    84

    Baptist Kindergarten Pakuranga

    15

    Total Students Participating

    992

    Cockle Bay School: flourishing edible garden.

    Stay connected

    Sign up to receive our Howick Local Board monthly e-newsletters.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Privacy News – October 2024

    Source: Privacy Commissioner

    October’s issue of Privacy News features a joint statement on data scraping fromOPC and several global privacy counterparts, new guidance about handling privacy complaints and conciliation, and an article by the Commissioner about employee browsing. You can also read about our popular camera concerned AskUs questions, and updated e-learning resources. Read the October issue.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Te Māori Manaaki Taonga Trust Board strengthened

    Source: New Zealand Government

    He toi whakairo, he mana tangata.

    The reappointment of one trustee and the appointment of four new trustees to the Te Māori Manaaki Taonga Trust Board will enable the legacy of Te Māori to be carried forward into the future, Māori Development Minister Tama Potaka and Arts Minister Paul Goldsmith have announced.

    Mr Arapata Hakiwai (Rongowhakaata, Ngāti Kahungunu, Ngāti Porou, Ngāi Tahu) has been reappointed. Mr Hakiwai is currently the kaihautū Māori co-leader at the Museum of New Zealand Te Papa Tongarewa, where he provides bicultural leadership and works to develop strong relationships with iwi. 

    The four new appointments are:

    Tā Selwyn Parata (Ngāti Porou). Tā Selwyn is a champion of the utilisation and revitalisation of te reo Māori, tikanga, waiata and kapa haka. Under his leadership, Te Matatini has grown significantly in viewership and kapa haka participation across the country. 

    Ms Puamiria Parata-Goodall (Ngāi Tahu, Ngāti Māmoe, Waitaha and Ngāti Kahungunu). Ms Parata-Goodall has over 30 years’ experience in the arts, culture and heritage sectors. She is current a member of the Ngāi Tahu Fund, Te Pae Kōrako Ngāi Tahu Archives, Canterbury Museum Trust Board and the Arts Council of New Zealand. 

    Mr Ngataiharuru Taepa (Te Arawa, Te Āti Awa). Mr Taepa is one of New Zealand’s most significant and innovative contemporary Māori artists and is the present Chair of Te Atinga, Contemporary Visual Arts Committee of Toi Māori Aotearoa.

    Ms Evie O’Brien (Ngāti Awa, Ngāti Ranginui and Ngāti Pikiao). Ms O’Brien has built a career working in executive leadership in higher education. She was previously the inaugural Program Director at the Atlantic Institute based at Rhodes Trust, Oxford, in the United Kingdom.

    These appointments come as we have just marked the 40th anniversary of Te Māori, Arts Minister Paul Goldsmith says.

    “Te Māori stands as one of Aotearoa New Zealand’s most significant cultural achievements, a transformative event that brought Māori taonga to the world, showcasing the identity, mana, and the richness of Māori culture.”

    Established by founding trustees Tā Hirini Moko Mead, Wiremu Cooper and Te Aue Davis, the Trust sought to ensure that Māori were afforded the skills needed to care for their taonga, Māori Development Minister Tama Potaka says.

    The Trust was relaunched in 2015 by Piri Sciascia, Arapata Hakiwai and Garry Nicholas, with a broader focus including leading and supporting information exchange, knowledge transfer, and increasing awareness and understanding of taonga Māori.

    “I believe there is potential for a reimagined Te Māori, where our culture and taonga amplify international trade and tourism opportunities.  

    “To quote Tā Hirini Moko Mead, ‘Te Māori raised our self-esteem, it gave us more space in the world, it defined clearly our identity as Māori and as New Zealanders, it ennobled us and lifted our morale – illuminated by a new glow of internationalism’.

    “Te Māori is as relevant today as it was 40 years ago, and our collective challenge is to enable its impact to continue.

    “I want to acknowledge and thank Garry Nicholas, for his commitment to reviving and strengthening the Trust.”

    Kua whakapakarihia te Poari o Te Māori Manaaki Taonga Trust

    He toi whakairo, he mana tangata.

    I te whakatūnga i tētahi kaitiaki, me te whakatūnga anō i tētahi tokowhā kaitiaki hōu ki te Poari o Te Māori Manaaki Taonga Trust ka whai mana tonu Te Māori haere ake nei, e ai ki tā te Minita Whanaketanga Māori Tama Potaka rāua ko te Minita Toi Paul Goldsmith tauākī.

    Kua whakatūngia anō a Mr Arapata Hakiwai (Rongowhakaata, Ngāti Kahungunu, Ngāti Porou, Ngāi Tahu). Ko Mr Hakiwai te kaihautū Māori takirua i Te Papa Tongarewa, te tukuna ai e ia ngā aratakinga ā-ahurea, te whakapau kaha ai hoki e kino ai te painga o ngā hononga ki ngā iwi.

    Koia ēnei ko ngā whakatūnga hōu e whā:

    Tā Selwyn Parata (Ngāti Porou). He kaihapahapai a Tā Selwyn i te karawhiua me te whakarauoratia o te reo Māori, te tikanga, te waiata, me te haka. I te urungitanga āna, kua mātotoru te tupuranga o tō Te Matatini hunga mātakitaki, waihoki, kua pēnā hoki te nōhanga mai a te tini makiu ki ngā kapa haka puta noa i te motu.

    Ms Puamiria Parata-Goodall (Ngāi Tahu, Ngāti Māmoe, Waitaha, Ngāti Kahungunu). Kua koni atu i te 30 tau a Ms Parata-Goodall e noho nei ki te ururuatanga o ngā rāngai mō te toi, te ahurea me te tiaki taonga. He mema ia i te Tahua Ngāi Tahu, Te Pae Kōrako Ngāi Tahu Archives, Canterbury Museum Trust Board me Toi Aotearoa.

    Mr Ngataiharuru Taepa (Te Arawa, Te Āti Awa). Ko Mr Taepa tētahi o ngā tino i te ao toi hōu Māori i Aotearoa, ā, ko ia hoki te Upoko o Te Atinga, te Komiti Toi Ataata Hōu o Toi Māori Aotearoa.

    Ms Evie O’Brien (Ngāti Awa, Ngāti Ranginui, Ngāti Pikiao). Kua poipoi a Ms O’Brien i tōna anō umanga i āna mahinga i te hunga kaihautū i te ao mātauranga tiketike. I ōna wā, ko ia te Kaihautū Kaupapa tuatahi i te Atlantic Institute i te Rhodes Trust, i Oxford, i Peretānia.

    He huanga ēnei whakatūnga i tā mātou whakanui i te huringa tau 40 o Te Māori, hei tā te Minita Toi Paul Goldsmith.

    “Mātāmua ko Te Māori e tū ana hei angitutanga ā-ahurea nā Aotearoa, arā, he huinga whakaumu i kitea ai ngā taonga Māori e te ao, i whakaaturia ai te tuakiri, te mana, me te iho o te ahurea Māori.”

    He mea whakatū e ngā kaitiaki, e Tā Hirini Moko Mead rātou ko Wiremu Cooper, ko Te Aue Davis, me te aha anō, ko te kōingotanga o te Tiakitanga kia whāia e te Māori ngā pūkenga e tiakina ai ā rātou taonga, hei tā te Minita Whanaketanga Māori Tama Potaka.

    I whakarewaina anō te Tiakitanga i te 2015 e Piri Sciascia rātou ko Arapata Hakiwai, ko Garry Nicholas, me te whāinga whānui e tae rā anō ana ki te aratakinga me te tautokonga i te whakawhitia o te mōhiohio, te mātauranga, me te whakatairanga i ngā mōhiotanga me ngā māramatanga ki ngā taonga Māori.

    “Hei tāku, he pito mata e pohewatia anō ai Te Māori, e whakanuia ai te tauhokohoko ā-ao me ngā whai wāhitanga ā-tāpoi e tō tātou ahurea me ā tātou taonga.

    “Arā te kōrero a Tā Hirini Moko Mead, ‘Nā Te Māori i hiki ai te wairua, i whai wāhi ai tātou ki te ao hurihuri, nāna tō tātou tuakiri i āta whakatauria mai hei Māori, hei ngāi Aotearoa hoki, nāna tātou i rangatira ai, i mana ai – ā, i miramiratia e te kura o te ao’.

    “E pērā tonu ana te hāngai o Te Māori i ēnei rā, tērā i ngā tau e 40 ki muri, ka mutu, ko tā mātou wero he para i te huarahi e whai pānga tonu ai ia.

    “E tika ana rā hoki kia mihia a Garry Nicholas i tāna ūnga ki te whakaoranga ake me te whakapakarihia o te Tiakitanga.”

    MIL OSI New Zealand News

  • MIL-OSI Economics: Mozambique: African Development Bank approves $54 million loan for Mozambique’s first wind energy project

    Source: African Development Bank Group

    The Board of Directors of the African Development Bank has approved a loan of $54 million for a 120 MW onshore wind farm that will help position Mozambique as a regional energy hub.

    The Bank’s loan, which includes $12 million from the Sustainable Energy Fund for Africa (SEFA), is in addition to financing expected from International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and the Private Infrastructure Development Group’s Technical Assistance. The total project cost is estimated at $224.5 million.

    Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, located 50 km west of Maputo, under a 25-year power purchase agreement.

    The wind farm will be Mozambique’s first utility-scale wind power project. It is expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique’s energy mix, and improving access to electricity. It will also position the country as a regional energy hub, capitalizing on increased energy trade through the Southern African Power Pool (SAPP).

    With Mozambique’s energy sources currently dominated by hydropower and gas, the Namaacha wind farm project will help reduce annual CO₂ emissions by approximately 71,816 tons, contributing to the country’s commitments under the Paris climate agreement.

    The project will support economic growth, job creation, and improved living standards. During construction it will create 600 jobs, of which its targeting about 120 will be for women, and 300 for youth. Once operational, 20 permanent jobs will be created, with a focus on gender and youth inclusion.

    Commenting on the project, Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said, “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”

    Wale Shonibare, Director of the Energy Financial Solutions, Policy, and Regulations Department at the African Development Bank stressed the technological impact of this milestone project. “As the first large-scale wind energy initiative in Mozambique, this project showcases the transformative potential of renewable technologies to drive sustainable growth. By leveraging Mozambique’s natural resources, we are creating pathways toward a diversified and resilient energy sector that not only meets current demands but is future-proofed to support an evolving economy,” he said.

    Globeleq is one of the project developers. Its CEO Jonathan Hoffman said: “The Namaacha Wind Farm is a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. We are proud to partner with EDM and Source Energia in contributing to the government’s ambitious ‘Energy for All by 2030’ program, which is rapidly transforming into a reality for countless Mozambicans. This project reflects our commitment to supporting Mozambique’s clean energy goals and bringing reliable power to the communities we serve.”

    Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the project underscores Mozambique’s dedication to renewable energy development and supports its goal of achieving universal access to electricity by 2030.

    The project complements the Bank’s earlier energy sector initiatives in Mozambique, including the Songo Matambo transmission line and the Mozambique Energy for All program.

    MIL OSI Economics

  • MIL-Evening Report: Not the time to share: NZ needs to rethink multi-bed hospital rooms

    Source: The Conversation (Au and NZ) – By Cindy Towns, Senior Lecturer, University of Otago Wellington, University of Otago

    As New Zealand agonises over its hospitals – where they are, how they should be staffed and how they should be funded – a key element in the debate is being missed: the need for single rooms in all public hospitals.

    It’s currently normal for patients to stay in shared rooms with up to five other people. In some hospitals this includes accommodating men and women in the same room, despite serious safety and ethical concerns.

    But it shouldn’t be this way. For a number of reasons, including infection control, privacy and cost, new hospitals and renovations need to be based on single occupancy rooms.

    Our new research brings together both the clinical and ethical arguments for single rooms for all patients as the most basic standard of care.

    Infection control

    Many may view shared rooms as a cost saving. But one of the key arguments for individual rooms in hospitals is the cost and harm of infections and bacterial resistance.

    Single rooms reduce risks by eliminating exposure to shared infection sources such as touched surfaces, unfiltered air, toilets and water systems.

    They also reduce the need for room transfers within the hospital which increase the risk for infection transmission between patients.

    There is strong evidence single occupancy rooms result in reduced infections in intensive care units. And further research has also found single occupancy reduces hospital transmission of COVID-19.

    In New Zealand, single rooms are prioritised for patients known to be infectious. But the key word here is known. This policy fails to recognise that a large proportion of transmissible infections are unknown at the time of ward placement.

    However, even when infection is known, our hospitals cannot meet basic guidelines due to the lack of single rooms. Only 30% of Wellington and Hutt hospital rooms are single occupancy, for example.

    Without single occupancy as the standard in hospitals, infection control will remain compromised.

    Delirium and dementia

    Individual rooms are also required for older adults. New Zealand’s population is ageing; as a result, patients with delirium and dementia needing hospitalisation will increase.

    Delirium affects about 25% of patients in hospital and is associated with a longer stay, more complications and an increased risk for death.

    Delirium prevention and management requires a low-stimulus environment, undisrupted sleep, and control of light and noise which cannot be achieved in shared hospital rooms.

    Research has shown a reduction in delirium with single rooms.

    The behavioural and psychological symptoms of dementia also pose significant challenges in hospital. Symptoms include hallucinations, delusions, sleep disturbance, depression, inappropriate sexual behaviour and aggression.

    These can be highly distressing for the patient and those around them and – like delirium – cannot be managed to a basic standard of care within a shared room.

    Dementia prevalence will more than double by 2050. And yet New Zealand hospitals are ill-prepared to accommodate this rise in demand.

    The right to security, privacy and dignity

    Shared rooms in hospitals clearly undermine clinical care, but they also violate human and patient rights.

    One of the most fundamental human rights is “security of person”. Nobody should have to share rooms with patients who are agitated, aggressive or sexually inappropriate due to delirium or dementia.

    Unfortunately, patients frequently share with those who are unable to manage their own behaviour. While the risks to women have been highlighted, no patient should be endangered or frightened by another patient’s behaviour.

    Dignity and privacy are also a fundamental patient rights, with privacy covered by by both the Health Information Privacy Code and the Health and Disability patient Code of Rights.

    Hospital patients often need assistance with dressing, showering and toileting. Many admissions involve vomiting, diarrhoea or incontinence. And design that relies on curtains to maintain privacy renders this right farcical.

    Research and complaints clearly show patients do not believe their privacy is adequately protected in shared spaces.

    Some may argue for multi-bed rooms on the basis that some patients prefer company. However patient surveys on privacy and confidentiality are overwhelmingly in favour of single occupancy.

    Factoring in cost

    While there is an increase in up-front costs when building single rooms due to the larger hospital footprint, research has found there is no convincing economic evidence in favour of multi-bed rooms.

    The potential savings for future pandemics – in mortality, patient transfers and disease transmission – should not be underestimated. Improved management of delirium and dementia, will also decrease length of stay and cost.

    The argument for single occupancy hospital rooms on clinical, ethical and legal grounds is collectively unequivocal.

    New Zealand needs to follow international best practice and introduce single occupancy rooms as a basic standard for new hospital builds and upgrades.

    Not doing so would ignore the lessons learnt in the COVID-19 pandemic, fail to account for the needs of an ageing population and continue to render New Zealand’s code of patient rights a fairy tale.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Not the time to share: NZ needs to rethink multi-bed hospital rooms – https://theconversation.com/not-the-time-to-share-nz-needs-to-rethink-multi-bed-hospital-rooms-241573

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI New Zealand: Why the Cornish Pasty Struggles to Make Its Mark in New Zealand

    Source: Press Release Service – Press Release/Statement:

    Headline: Why the Cornish Pasty Struggles to Make Its Mark in New Zealand

    Chef Adam Rickett, known for his work at Euro and Culpeper in Auckland, shares his mission to popularize the Cornish pasty in New Zealand.

    The post Why the Cornish Pasty Struggles to Make Its Mark in New Zealand first appeared on PR.co.nz.

    – –

    MIL OSI New Zealand News

  • MIL-OSI Asia-Pac: FS continues to explore business opportunities for Hong Kong in Riyadh, Saudi Arabia (with photos)

    Source: Hong Kong Government special administrative region

         The Financial Secretary, Mr Paul Chan, together with a delegation, had their second day of visit in Riyadh, Saudi Arabia, yesterday (October 30, Riyadh time).     In the morning, Mr Chan attended the listing ceremony for the first exchange-traded fund (ETF) in Saudi Arabia that invests in Hong Kong stocks at the Saudi Exchange. This product is the result of collaboration between Albilad Bank of Saudi Arabia and Hong Kong’s CSOP Asset Management Limited.     Mr Chan highlighted that as the largest ETF in the Middle East, it will attract more regional investors and broaden funding sources for the Hong Kong market, while diversifying the investment product offerings in the Saudi market, fostering the development of its ETF market, creating a win-win situation.     He also noted that after the first ETF investing in the Saudi market was listed in Hong Kong last November, this marks the Saudi Arabia’s first ETF investing in Hong Kong stocks. He believes that more diversified products will emerge in the future, providing investors from the Middle East with convenient channels to invest in Hong Kong and Mainland China, and enhancing the two-way flow of capital between Hong Kong and Saudi Arabia, and fostering greater connectivity and more vibrant development of the capital markets in both regions.     Mr Chan and some delegation members also attended a breakfast meeting hosted by Hong Kong Exchanges and Clearing Limited (HKEX) to discuss capital market connectivity between Asia and the Middle East.     During his keynote speech at the breakfast meeting, Mr Chan elaborated on Hong Kong’s significant role and function in the global capital market. He pointed out that Saudi Arabia’s Vision 2030 has brought major reforms and opportunities, promoting capital investment from Asian markets. With its unique advantage of “one country, two systems”, Hong Kong has become the premier international financial centre connecting the Middle East with the Chinese market, particularly in three key areas: a deep and broad fund-raising market, asset and wealth management, and green and sustainable finance.  They provide diverse investment offerings for investors and enterprises in the Middle East, and providing financial support to regional economic development and green transformation.     The breakfast meeting included a discussion session moderated by HKEX’s Chief Executive Officer (CEO), Ms Bonnie Chan, featuring remarks from CEO of the Saudi Exchange, Mr Mohammed Al-Rumaih; Deputy Chief Executive of the Hong Kong Monetary Authority, Mr Darryl Chan, and CEO of Standard Chartered Group, Mr Bill Winters.     At noon, Mr Chan called on the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Kingdom of Saudi Arabia, Mr Chang Hua, to brief him on Hong Kong’s latest economic developments and exchange views on China-Saudi co-operation and economic relations.     In the afternoon, Mr Chan co-hosted a capital markets roundtable with Chairman of the Saudi Capital Market Authority, Mr Mohammed bin Abdullah Elkuwaiz. Representatives from regulatory bodies and a number of asset management institutions attended to discuss the latest developments in the financial markets of both regions and to explore further co-operation opportunities.     Later, Mr Chan met with Governor of the Saudi Central Bank, Mr Ayman Alsayari, to discuss advancing connectivity in investment and financial markets between Hong Kong and Saudi Arabia and the Middle East, as well as co-operation in digital finance.     In the evening, the Hong Kong Science and Technology Parks Corporation held the “Hong Kong Tech Disrupt” event, featuring over 20 startups in green technology, biotechnology, artificial intelligence and robotics, etc. They showcased their research products and sought to connect with investors and business partners.     Yesterday, a number of delegation members also attended the “Future Investment Initiative” event and delivered speeches, continuing to tell the good story of China and Hong Kong.     ???     Mr Chan and the delegation will continue their final day of visit in Riyadh today (October 31, Riyadh time).

    MIL OSI Asia Pacific News

  • MIL-OSI USA: Defense Secretary Lloyd J. Austin III and South Korean Defense Minister Kim Yong Hyun Hold Joint Media Availability

    Source: United States Department of Defense

    PENTAGON PRESS SECRETARY MAJOR GENERAL PAT RYDER: Well, good afternoon and thank you for being here today. Ladies and gentlemen, it is my pleasure to introduce Secretary of Defense Lloyd J. Austin and Republic of Korea Minister of National Defense Kim Yong Hyun. The secretary and the minister will deliver opening remarks and then we’ll have time to take a few questions.

    Please note that I will moderate and call on journalists. And with that, Secretary Austin, over to you sir. SECRETARY OF DEFENSE LLOYD AUSTIN: Thanks, Pat. Good afternoon, everybody and thanks for being here. Minister Kim, let me again welcome you and your team to the Pentagon. It’s our honor to host our allies in the Republic of Korea for our 56th Security Consultative Meeting. The SCM is the annual capstone event for the US-ROK Alliance. It brings our defense leaders together to tackle shared challenges and to deepen our friendship.

    For more than 70 years, our alliance has been the foundation of peace and stability on the Korean Peninsula. Our two proud democracies share a vision of a free and open Indo-Pacific and we stand shoulder to shoulder against those who would upend the status quo. Now we’re closely tracking the unprecedented level of direct military cooperation between Russia and the DPRK. In our meetings today, we shared our deep concerns about the deployment of DPRK troops to Russia.

    We also discussed how we’re going to work together with our allies and partners to respond to this dangerous and destabilizing escalation. The evidence now suggests that North Korea has sent around 10,000 soldiers to train in eastern Russia and some of these DPRK troops have already moved closer to Ukraine.

    And we’re seeing them outfitted with Russian uniforms and provided with Russian equipment. And I am increasingly concerned that the Kremlin plans to use these North Korean soldiers to support Russia’s combat operations in Russia’s Kursk region near the border with Ukraine. And let me remind you that Russia signed on to the UN Security Council resolutions agreeing not to provide military assistance to North Korea.

    Of course, we know that Putin has gone tin cupping to get weapons from the DPRK and Iran. Turning to a pariah state like North Korea for troops just underscores how much trouble he is in. And we take this very seriously. We urge the Kremlin to change course and we fully understand the security implications for both Europe and the Indo-Pacific.

    Putin will not prevail in Ukraine even with more help from North Korea, but these deeply concerning developments only underscore the importance of our alliance with the ROK and other allies and partners committed to shared security and prosperity. Now, Minister Kim and I had an outstanding meeting today.

    Our discussions move the ball forward to modernize and deepen our alliance that will help protect the security of the Korean Peninsula and shape the future of the Indo-Pacific. It was with a sense of urgency we’ve delivered on a shared security objectives that we set forth just a year ago in a defense vision of the US-ROK Alliance.

    The US Department of Defense and the ROK Ministry of National Defense signed the Nuclear Consultative Group guidelines in July and later that month I traveled to Japan to join an historic trilateral ministerial meeting with the ROK and Japan. It was held in Tokyo for the first time as envisioned by the 2023 Camp David Summit.

    Now I assured Minister Kim today that the United States remains fully committed to the defense of the ROK and our extended deterrence commitment remains ironclad. That commitment is backed by the full range of America’s conventional missile defense, nuclear and advanced non-nuclear capabilities. We’ve also returned to large scale exercises with our ROK allies and that strengthening our combined readiness and our interoperability.

    We’re also working together to tackle shared security challenges across the Indo-Pacific. So today Minister Kim and I endorsed a framework to expand our cooperation throughout the region based on our shared values and common interests. We also discussed the important role of the United Nations Command, which reflects the international community’s long-standing commitment to peace on the peninsula.

    And earlier this year with support from the ROK, we accepted Germany as the 18th member state of the UNC. Moving forward, we’ll build on our momentum and will expand the scope and scale of our cooperation. We’ll use our strategic advantages and innovation in our defense industrial bases to bring cutting edge tech to our warfighters.

    Now our alliance has always been rooted in our shared commitment to act together in the interests that brought us together seven decades ago have continued to grow stronger. Today’s discussion again underscored our shared vision for this alliance’s future. So, Minister Kim, thanks for your leadership and your commitment to this proud alliance.

    We got a lot done today and I look forward to doing even more tomorrow in the US-ROK 2+2 with Secretary Blinken and Minister Cho and thanks very much and now let me turn it over to Minister Kim. SOUTH KOREAN DEFENSE MINISTER KIM YONG-HYUN: (Via interpreter) Good afternoon. This is the Minister of National Defense of the Republic of Korea, Kim Yong-hyun. I find it highly meaningful to conduct my first overseas defense diplomatic engagements after my inauguration here at the Pentagon, the heart of safeguarding liberal democracy. Today at the SCM, Secretary Austin and I reviewed the work of implementing the defense vision of the ROK-US alliance over the last year.

    In addition, we reaffirmed that the ROK-US alliance remains more robust than ever, even amid complex international security crisis. While asserting its theory of hostile two nations. North Korea continues to escalate tensions on the Korean Peninsula through detonation of sections of inter-Korean roads. In order to deter and respond to DPRK, provocations and

    threats, Secretary Austin and I agreed to maintain an overwhelming combined defense posture and engage in close coordination and responses.

    In particular, we made it clear that DPRK’s ongoing practice of sending filth and trash balloons constitutes a violation of the armistice agreement and called for an immediate cessation of this activity with one voice. Furthermore, we condemned in the strongest terms with a unified voice, the unlawful military cooperation between North Korea and Russia, which directly violates the rules-based order through the deployment of North Korean forces to Russia and arms trade and pledged to closely work with the international community.

    This July, the defense authorities of Korea and the United States completed the NCG Joint Guidelines through the Nuclear Consultative Group, thereby elevating the ROK-US alliance to an unequivocal nuclear based alliance. Building on these guidelines, Secretary Austin and I will diligently pursue the NCG tasks in a substantive manner to enhance the execution capabilities of extended deterrence of ROK and US equal partners.

    Throughout this process, the ROK Strategic Command will be a key unit in the execution of the ROK-US conventional nuclear integration, CNI, operations. Secretary Austin reaffirmed the United States’ unwavering commitment to providing extended deterrence to the Republic of Korea by utilizing the full range of its military capabilities.

    In addition, as tangible evidence of the US commitment to the defense of the ROK, Secretary Austin reiterated that the frequency and intensity of US strategic asset deployment would be increased and made regularized in accordance with President Biden’s commitment in the Washington Declaration. The ROK and the United States will further enhance their — continue to further enhance the Alliance’s capabilities and posture in response to nuclear and missile threats through implementing combined exercises that reflect the North Korean nuclear threats.

    Secretary Austin and I agreed to strengthen security cooperation in the region based on the respective Indo-Pacific strategies of our two countries. The nuclear and missile threat from North Korea is now an existential threat, not only to the ROK, but also to the Indo-Pacific region. We had a shared understanding that the ROK-US-Japan Trilateral Security Cooperation Framework signed this July represents a historic milestone in trilateral security cooperation.

    We will continue to further enhance it. In particular, we highly appreciated the achievements of freedom to exercise the first multi-domain training and have decided to conduct a second training in the near future. In today’s meeting, Secretary Austin and I approved the regional cooperation framework for ROK-US Alliance contributions to security in the Indo-Pacific, demonstrating our commitment to cooperation both domestically and internationally.

    Based on the framework, we will expand substantive cooperation with ASEAN and Pacific Island nations, enhancing the level and broadening the scope of the ROK-US Alliance.

    Secretary Austin and I pledge to strengthen cooperation in science and technology and defense industry based on the defense vision of the alliance.

    We plan to establish a vice minister level defense Science and Technology executive committee within this year to explore the application of cutting-edge science and technology in the defense sector as well as cooperation on all cause Pillar 2. Furthermore, we acknowledge the significance of securing supply chain resilience and modernizing alliance capabilities and pledge to engage in active cooperation in the defense industry sector.

    In this regard, Secretary Austin welcomed ROK’s participation in the US MRO pilot project and underscored the efforts to expand cooperation between our two countries. For more than 70 years, the ROK-US Alliance has overcome countless challenges establishing itself as one of the world’s most premier and exemplary alliances.

    Through the 56th Security Consultative Meeting, Secretary Austin and I reaffirmed our resolve to leap forward as a stronger alliance in response to uncertain future challenges. As the minister of National Defense, I will work closely with Secretary Austin so that the ROK-US Alliance serves as a linchpin of peace and stability in the world extending beyond the Korean Peninsula.

    I deeply appreciate Secretary Austin’s active support for the successful meeting we had today. We go together, [untranslated]. Thank you. MAJ. GEN. RYDER: Thank you very much, gentlemen. Our first question will go to Phil Stewart, Reuters. Q: To Secretary Austin, how soon do you believe that North Korean soldiers may enter the fight against Ukrainian forces in Kursk? Are we talking days or weeks? And do you believe there’s anything the international community can still do to stop that deployment? And to Mr. Kim, does this deployment increase the risk of war on the Korean Peninsula?

    And does this change South Korea’s willingness to provide lethal direct aid to Ukraine? If not, why not? SEC. AUSTIN: Well, Phil, as you heard me say in my opener (pause for translation)— Phil, as you heard me say in my opener, we believe that the DPRK has sent some 10,000 troops into eastern Ukraine and there they’ve been drawing equipment and conducting some training. And some of those troops have begun to make their way towards the border of Ukraine in the Kursk region.

    Whether or not they’ll be employed in the fight, is left to be seen yet. But certainly, if they are employed, then that’s very disturbing. And so, we remain concerned that they’re going to use these troops in combat. I won’t speculate on the timing of employment. Again, this is something we’re going to continue to watch and we’re going to continue to work with allies and partners to discourage Russia from employing these troops in combat.

    Again, this is a violation of the UN security agreement. So, this is pretty serious. Again, we’re going to continue to watch it and continue to work with our allies and partners to discourage it, so (pause for translation) Phil, to be clear, violation of UN sanctions. Q: Do you mean eastern Ukraine? SEC. AUSTIN: I’m sorry? Q: I thought you said deployed to eastern Ukraine. Yeah? Q: Did you mean eastern Ukraine or Eastern Russia that they had deployed to? SEC. AUSTIN: They had deployed to Eastern Russia and then they’re making their way west towards the Ukrainian border, sorry about that. DEFENSE MINISTER KIM YONG-HYUN: (Via interpreter) I’d like to answer the question regarding the increase in the possibility of war breaking out on the Korean Peninsula following the North Korean’s troops deployment to Russia. I do not necessarily believe that the North Korean troops deployment to Russia results in the changes in the possibility of war breaking out on the Korean Peninsula.

    However, I believe this can result in the escalation of the security threats on the Korean Peninsula. This is because there is a high possibility that North Korea, in exchange for their troops deployment, would ask for cutting edge technology transfer. There is a high chance that they would, in exchange for their deployment, North Korea is very likely to ask for technology transfers in diverse areas, including the technologies relating to tactical nuclear weapons technologies related to their advancement of ICBM, also those regarding reconnaissance satellite and those regarding SSBNs as well.

    There is also a high chance that they will try to replace their equipment that have been taken a lot of time, so therefore old technologies or equipment. I believe such changes in the technological situation of North Korea can pose an increase in the escalation of security threats on the Korean Peninsula.

    However, one thing to consider is that as we have witnessed in the Russia-Ukraine war, the conventional weapon capabilities of Russia is not as formidable as we expected it to be. Therefore, even with the possibility of Russia’s cutting-edge technology flowing into North Korea and thereby resulting in the advancement of North Korea’s military technology, I believe it is possible for us to overcome such challenges based on our robust ROK-US alliance and ROK-US-Japan trilateral security cooperation.

    And through these cooperation, I believe we can secure enough and sufficient capability in order to overcome such security challenges. In short, I would rather see the results or impacts of the deployment as an increase that can result. I believe the deployment can result in the security threats on the Korean Peninsula and it could also have a destabilizing impact on the security of the Korean Peninsula, but I don’t believe it is going to be any changes in the possibility of war breaking out on the Korean Peninsula.

    MR. RYDER: Thank you both. Our next question will go to Ji Hun Kim, Yonhap News Agency. Q: (Via interpreter) This is Reporter Kim from Yonhap Agency, and first I have a question to direct it to Minister Kim. Last year’s munition deal between Korea’s corporation and the United States is an exemplary case where Korea was able to provide support toward United States in accordance with the mutual defense treaty. And do you have any additional plans to give indirect support to Ukraine by supplying munitions to the United States in an indirect way?

    And also, there’s another question about the trash and filth balloons. Korea has been showing consistently the kind of response — Korea has been showing response such as collecting the trash balloons after they were dropped on the territory of Korean Peninsula, or they have consistently asked North Korea to cease the release of trash balloons.

    Do you have any additional measures in order to respond to such release of trash or filth balloons from North Korea? And this question, the last question is directed to both Minister Kim and Secretary Austin. North Korea has consistently shown their anti-humanitarian provocations. Do you have any messages in mind that you can deliver to Kim Jong Un and North Korea? DEFENSE MINISTER KIM YONG-HYUN: (Via interpreter) So the first question about munitions supply to United States, I have to give you an answer that at the current moment, nothing is determined. And for your second question about Korea’s response to North Korea’s release of trash and filth balloons, in today’s meeting, Secretary Austin and I have confirmed that the deployment of trash and filth balloons are a violation of armistice agreement. And as the release of trash and filth balloons is a provocation that poses a safety threat to our people, we have been using the response of first identifying and then tracking and then after we found out the location of the dropping. And then we checked if there is any biological or chemical weapons in it after we have gone through all the tests, then we collected those balloons.

    These measures were taken under our assessment that this is the best and most optimal way of guaranteeing and confirming the safety of our people and that this is the way to protect our people in our best way. However, North Korea is crossing the line with various methods of provocations and we are open to all alternatives when it comes to the risk — when it comes to our response to North Korea’s provocation.

    On your third question, I recall it was if I have any message toward — that I have to Kim Jong Un. I believe the essence of North Korean troop deployment is the possibility of expansion of the war. And this results from the intervention of the third party, which is North Korea. And such possibility is resulting in grave concerns of European countries, including Ukraine.

    And the deployment is — North Korea is joining the collusion of Russia’s illegal aggression and invasion, and therefore I see that the deployment is Kim Jong Un’s attempt to maintain

    its dictatorship and Kim Jong Un didn’t hesitate to sell out its young people and troops as cannon fodder mercenaries. I believe such activities is a war crime that is not only anti-humanitarian but also anti-peaceful.

    Therefore, I would like to strongly condemn the activity of Kim Jong Un and I believe all responsibility from the results of the deployment belong to Kim Jong Un. We call for Kim Jong Un’s immediate withdrawal of his troops in our strongest terms. Thank you.

    SEC. AUSTIN: Thank you for the question. I don’t have any messages for the leadership of DPRK. I call upon them to cease their potentially destabilizing behavior in both the Indo-Pacific region and now in the European theater as well. And like my colleague here, Minister Kim, I call upon them to withdraw their troops out of Russia.

    It does have the potential of lengthening the conflict or broadening the conflict if that continues. MR. RYDER: Our next question will go to Courtney Kube, NBC. Q: Thank you. Mr. Secretary, you told Phil that you — the US will continue to watch this deployment and work with allies to discourage it. But how specifically can the US or the international community actually stop? Is there anything the US can do? And you just said that that this does have the potential for broadening the conflict.

    Does that mean that you see the possibility that if in fact Russian troops are fighting alongside North Korean troops that that means other countries could send troops perhaps even to fight alongside the Ukrainians in an advisory level or fighting or anything? And then just one more, this is my real question. Those were follow ups.

    My real question is just what happens when North Korean troops are killed by US provided weapons? And then Minister Kim, do you see any signs that North Korea plans to interfere in the US elections? We — your DIA said today that DPRK may be ready to launch an ICBM, perhaps a nuclear weapon.

    Is there any indication that that could be or other actions that they may be taking could be specifically to interfere with the US election? Thank you. You only get one. SEC. AUSTIN: So Courtney, the first of your 20 questions here was whether or not we can stop the DPRK from sending troops. We certainly can work with others to discourage this — this kind of behavior. But I didn’t mean to imply that we can stop that. But certainly, their actions have consequences as all actions have consequences.

    And we need to be mindful of that. In terms of what could happen, you mentioned my reference to potentially broadening this conflict. Yes, it could encourage others to take action, different kinds of action, but I won’t speculate on what could exactly happen. But we — there are a number of things that could happen.

    And what happens when DPRK soldiers are killed with US provided weapons? Well, if the DPRK soldiers are fighting alongside Russian soldiers in this conflict and attacking Ukrainian soldiers, Ukrainian soldiers have the right to defend themselves and they will do that with the weapons that we provided and others have provided.

    That’s to be expected. But if they are fighting alongside of — of Russian soldiers, they are co-belligerents and you have every reason to believe that those kinds of things will happen, that they will be killed and wounded as a result of battle. DEFENSE MINISTER KIM YONG-HYUN: (Via interpreter) Thank you for giving 20 questions to Secretary Austin, but only one for me. I’m so happy. So on your question about the possibility that North Korea attempts to interfere with US presidential election, my short answer is that the possibility is not high. I believe there isn’t a high chance of them attempting to interfere with the election.

    However, I believe there is a high chance that they would want to exaggerate their existence around the season of US presidential election before and after the election. The expected courses of action that North Korea could take in their attempt to provoke could be either their launch of ICBM or their seventh nuclear tests. MR. RYDER: Thank you. Our final question will go to Ji-ho Yang, Chosun. Q: (Via interpreter) This is Reporter Yang from Chosun Daily. First, I have a question to Minister Kim. The main opposition party of Republic of Korea has expressed their opposition to North Korea’s dispatch of analysis team and Korean delegation to Ukraine. So from your perspective, Minister Kim, what do you think is the role that Korean military can play in Ukraine?

    And I have another — I have a question to Secretary Austin. So it is my understanding that the current assessment of the United States DOD is that North Korea did deploy troops to Ukraine — to Russia, however, they were not involved in any combats at the moment. So however, some are claiming that North Korean troops that are — are already being deployed are being — are already being in engagement.

    So like, what would be your standard to determine whether the participation of these North Korean troops will be deployment or actual participation in combat operations? And also you have — US DOD has also made a statement that the North Korean troops who are in Russia will also be classified as enemies that can be attacked by — by US weapons that are supplied to Ukraine.

    So could you give a little more elaboration on this statement? This concludes my question. DEFENSE MINISTER KIM YONG-HYUN: So I recall the question was about our observers and monitoring teams of Korea that are — that are and could be sent to Ukraine. So throughout the history in many different wars, including the Iraq war, there have been many

    cases where we have sent monitoring teams or lesson learned analysis team to the countries that are currently — that were in war.

    The role of such observers or analysis team play in the war is mainly analysis of the trends of the modern warfare or different aspects of modern welfare. And especially as we have confirmed North Korean troops were deployed to Russia, I believe it could serve as a great opportunity for our analysis team or observer to learn the movements or trends of the North Korean troops.

    In many wars there — we have witnessed many new and diverse weapon systems continuously popping up and also we were able to witness many different modern tactics in the war. I believe if we can collect such information diligently and then utilize it for our future safety of — and stability of our country, I believe it can serve as an opportunity for us to provide better protection to our — the people of Republic of Korea.

    I believe it is an obvious task that our military should play to send observers and analysis team to the Russia-Ukraine war. And I — I would even say that if we don’t send our observers or analysis team, it would mean that we are not faithfully doing our jobs. SEC. AUSTIN: So thank you for your question. As I understand it, the first question was what was our — what is our standard for determining whether or not the DPRK troops are actually fighting or in the fight. And the second question was whether or not they can be engaged with US weapons. So I think standards are pretty easy.

    If they’re fighting, if they’re attacking Ukrainian soldiers and they are co-belligerents, they’re a part of this fight, that’s fairly easy to determine. And it’s not certain that they will be introduced into this fight. But clearly 10,000 soldiers, and some of them are moving west towards the Ukrainian border, then there’s a good likelihood that they will be employed, but we’ll see.

    We won’t speculate. We’ll collect evidence. They’re doing this because Putin has lost a lot of troops, a lot of troops. And you know, he has a choice of either getting other people to help him or he can mobilize. And he doesn’t want to mobilize because then the people in Russia will begin to understand the extent of his losses of their losses.

    So there’s a good likelihood that these troops will be introduced into combat, not certain, but I think the likelihood is pretty high. But this is not a sign of strength. It’s a sign of weakness. Putin has not achieved one strategic objective in two and a half years against a force that was far inferior to his force. That’s a sign of weakness. Again, he’s gone to other countries for weapons and munitions and now he’s going to other countries for people. And as I said earlier, if they are fighting and they’re co-belligerents, they’re attacking Ukrainian troops and the Ukrainian troops have the right to defend themselves, and we have every expectation that they will.

    They’ll use their own weapons. They’ll use the weapons that they’ve been provided, and that won’t be a surprise to anyone. But this doesn’t have to happen. Putin can end this war

    today. It was his choice to launch this war. He’s not achieved his objectives. He can end this war and he should end this war.

    Otherwise, we’ll see a lot more losses on both sides and that’s really highly unnecessary. But I think in terms of our standards for determining whether or not they’re fighting, they’re in the fight, I think it’ll be pretty easy to determine that. OK. MAJ. GEN. RYDER: Secretary Austin, Minister Kim, thank you both, gentlemen. Ladies and gentlemen, that’s all the time we have available today. This concludes our press briefing. Thank you.

    MIL OSI USA News

  • MIL-OSI USA: Disaster Recovery Center Opening in York County

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center Opening in York County

    Disaster Recovery Center Opening in York County

    A Disaster Recovery Center will open in York County to provide in-person assistance to South Carolinians affected by Hurricane Helene.  York CountyYork County Library 138 E. Black St.Rock Hill, SC 29730Open Oct. 31, 9:30 a.m.-7 p.m.; Nov 1-2, 9:30 a.m.-6 p.m.; Nov. 4-6, 9:30 a.m.-7 p.m.; closed on Nov. 3Additional Disaster Recovery Centers are scheduled to open in other South Carolina counties. Click here to find centers that are already open in South Carolina. You can visit any open center to meet with representatives of FEMA, the state of South Carolina and the U.S. Small Business Administration. No appointment is needed. To find all other center locations, including those in other states, go to fema.gov/drc or text “DRC” and a Zip Code to 43362. Homeowners and renters in Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Hampton, Jasper, Kershaw, Laurens, Lexington, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Union and York counties and the Catawba Indian Nation can apply for federal assistance.The quickest way to apply is to go online to DisasterAssistance.gov. You can also apply using the FEMA App for mobile devices or calling toll-free 800-621-3362. The telephone line is open every day and help is available in many languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service. For a video with American Sign Language, voiceover and open captions about how to apply for FEMA assistance, select this link.FEMA programs are accessible to survivors with disabilities and others with access and functional needs. 
    dalton.kramer
    Wed, 10/30/2024 – 22:02

    MIL OSI USA News

  • MIL-OSI Security: West Lafayette Man Sentenced to 27 Months in Prison

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    HAMMOND- Markith Williams, age 39, of West Lafayette, Indiana, was sentenced by United States District Court Judge Philip P. Simon after a jury found him guilty of being a convicted felon in possession of a firearm following a two-day jury trial, announced United States Attorney Clifford D. Johnson.

    Williams was sentenced to 27 months in prison followed by 2 years of supervised release.

     According to documents in the case, on January 13, 2022, a traffic stop of Williams’ vehicle in Jasper County, Indiana, led to the recovery of a loaded semi-automatic pistol. Williams’ criminal history revealed that he had 3 prior Illinois felony convictions which included being a felon in possession of a firearm, aggravated unlawful use of a weapon, and delivery of cocaine, any one of which prohibited him from possessing the firearm in this case. 

    This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hammond Police Department, and the Jasper County Sheriff’s Department.  The case was prosecuted by Special Assistant United States Attorney Patrick D. Grindlay and Assistant United States Attorney Kristian R. Mukoski.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI

  • MIL-OSI Australia: Interview with Warwick Lang, Victorian Country Hour, ABC Radio

    Source: Australian Treasurer

    WARWICK LONG:

    Let’s talk competition in farming in Australia. A member of the federal government has identified farming as an area in dire need of competition reform in Australia. Andrew Leigh is the Assistant Minister for Competition in the Labor government. He says this country’s small‑scale farmers are getting hammered at both ends by concentrated markets and at numerous points along the agricultural supply chain. I had a chat to him about improving the improving the competition playing field for farmers after he made a speech on such a topic to ABARES in Canberra.

    ANDREW LEIGH:

    Well, farmers are the meat in the sandwich when it comes to problems of competition in the Australian economy. We see too many farmers buying seed and fertiliser from concentrated markets and then getting squeezed by having to sell into concentrated markets for processors or in freight. And the effect is that farmers aren’t getting a fair deal. I’m talking about a lot of what we’re doing in the competition space through the lens of farming. Farming is a critical industry to the Australian economy, but it also illustrates some of the big competition problems that the Australian economy faces right now.

    LONG:

    Why is farming such an easy example to grasp about the lack of competition and what it does to markets?

    LEIGH:

    Compared to many industries, small‑scale farming is pretty easy to enter. It is not as easy to set up a tractor manufacturing business or to set up a freight distribution network. The result is that you get a lot of competition in farming across many commodities but not so much upstream and downstream. So if you’re looking at fertiliser, the big 4 fertiliser manufacturers in Australia have 62 per cent of the market between them. And then if you’re looking downstream, fruit and vegie processing, the big 4 have 34 per cent of the market. Meat processing, the big 4 have 44 per cent of the market. So there’s these really concentrated markets, and that’s before we’ve even gotten to the supermarkets where the supermarket duopoly does have the effect of squeezing farmers. Which, of course, is why, Warwick, we’re moving to make the Food and Grocery Code of Conduct a mandatory code.

    LONG:

    What has failed in the past? So the meat industry is one of those that you’re using, particularly you cite its effect on small‑scale beef producers, for example, because there’s such market concentration. Now, I’ve been around for quite a long time, Assistant Minister, and I remember when the ACCC didn’t oppose JBS’s taking over of Primo, for example, because even though it meant a highly concentrated market in areas like New South Wales and Queensland. So what’s gone wrong in the past to lead us down this road of concentration now?

    LEIGH:

    Our merger law system just hasn’t been up to what it needs for a modern economy. Australia’s competition watchdog doesn’t get to see about 3 out of every 4 mergers because there’s no requirement on big firms to notify them. You can’t block what you can’t see. So the merger reforms we’ve got in parliament right now are the biggest merger shake‑up in half a century. We’d hope they’d get support right across the parliament. And they’ll have 2 results, Warwick, one will be that low‑risk mergers get approved quicker, and the other is that high‑risk mergers can have the scrutiny that they deserve applied to them by the competition watchdog.

    LONG:

    What other rules and changes are you proposing?

    LEIGH:

    We’ve got the banning of unfair contract terms. We did that as soon as we came into office. And that’s mattered for areas such as fertiliser contracts and potato processing where those unfair contract terms have been used. For consumers we’ve got the CHOICE quarterly price monitoring to make sure that consumers are seeing where they can get their best deal across the grocery sector. And we’re giving the competition watchdog more resources in order to check up on unit pricing, make sure that the prices on the supermarket shelf really are a fair reflection of what Australians will pay.

    LONG:

    You’ve also cited in your speech today about the right to repair laws affecting the motor vehicle industry. You and I spoke a lot in the past about trying to extend that to tractor and machinery sales. Why hasn’t that happened yet?

    LEIGH:

    Well, we’re encouraging parties to first look at a voluntary agreement here which can often have a more tailored approach. But we recognise that there’s a squeeze on and it can particularly affect farmers where you’re working off short timeframes. You’ve got to get a crop harvested. Your machine breaks down and you just can’t afford to take a week for the authorised dealer to fix it. So we understand the squeeze. We understand that the farm machinery industry is heavily concentrated. This one is not as straightforward as what we did for the motor vehicle scheme –

    LONG:

    Why not?

    LEIGH:

    Well, because in motor vehicles you’ve got a greater diversity of independent repairers. There’s some 20,000 independent repairers across the country. You just don’t have that network of independent repairers in the area of farm machinery. Most of the repair is being done at the moment by the big firms. And what we’re looking at is a discussion where people say we could have a vibrant independent repair industry if only there was a right to repair laws for farm machinery.

    LONG:

    Yeah, so as opposed to what you had to do in the motor vehicle sector where there was already an existing network there effectively you need to look if your law changes for the farm machinery sector would effectively almost create a new category of business?

    LEIGH:

    Yes, that’s right. Whereas independent mechanics, we were seeing them being crushed by a lack of access to data. But data is a big thing. John Deere has got more software development engineers than mechanical design engineers. Farm machines are becoming increasingly computerised, and that means that access to the data is fundamental to allowing a third‑party repairer to fix a fault.

    LONG:

    This is your passion, isn’t it? Competition and how markets work.

    LEIGH:

    I’m glad you detected that passion, Warwick. Absolutely. For economists this goes back to Adam Smith in 1776. There’s really good work about the benefits of competition for consumers, for workers and just for innovation. More competitive markets see higher productivity growth. And so this is one of the key things we need to do if we’re going to kickstart more growth in the Australian economy.

    LONG:

    And obviously more competition, more buyers for products is important. Your government is restricting that in the world of agriculture, particularly for the WA sheep industry right now with the phase out of live sheep exports. Have you looked at what that will do to the market there?

    LEIGH:

    Look, we’re providing support to the industry – over $100 million there – and also encouraging the boxed meat industry. And as you well know, Warwick, the volume of live sheep exports has been steadily declining. We’re very keen to see that local processing industry increasing, the value‑adding, and also working hard to open up new markets. So if you look at the resumption of the rock lobster trade with China, with the trade deal with the United Arab Emirates, all of that opening up of the international markets gives more options to our farmers. It means that they’re not as constrained at just selling to a couple of local processors.

    LONG:

    A sheep farmer can hardly jump into the world of rock lobster farming, though, can they?

    LEIGH:

    No, that’s right. I’m just giving you an illustration of what we’re doing across the markets, recognising the importance of international trade to Australian farmers.

    LONG:

    I suppose you and I are talking about the same thing here, right, aren’t we, Andrew Leigh? We’re talking about how government decisions or actions, whether it be the closure of key international markets or whether it be phase‑outs of industry, that does affect markets and it’s on government to pull the levers to decide the future of these industries, isn’t it?

    LEIGH:

    The government plays a significant role. And what you’re talking about with live sheep really is an issue of animal welfare, which I think is broadly supported across the Australian community. But what we’ve been doing in opening up international markets really is very much in the traditions of the Whitlam, Hawke and Keating governments – that international engagement often led by farmers because we export the vast majority of our agricultural produce in Australia to the benefit of farmers and the broader economy.

    LONG:

    So, this is part of your discussion with ABARES. Do you have a plan to sort of update on whether your levers and work in competition areas will be working in, say, 12 months’ time?

    LEIGH:

    Yeah, it’s a great question, and one of the things we haven’t done very well in government is evaluating what we do. And so we’re now just thinking through the best ways of evaluating the impact of the competition reforms, making sure that as we move to a mandatory code of conduct for food and grocery that we are seeing those better deals coming through for farmers, ensuring that as we go into the new merger regime that we see better competition across Australian industries. So, tracking performance is absolutely the best practice in government. That’s what I want to do more of.

    LONG:

    That’s the Assistant Minister for Competition, Andrew Leigh, speaking there about improving competition rules, the playing field essentially for farmers.

    MIL OSI News

  • MIL-OSI Australia: Latest harassment allegations at workplaces, private colleges concerning

    Source: Australian Human Rights Commission

    The Sex Discrimination Commissioner, Dr Anna Cody, has spoken out on the crucial role employers and institutions hold to end the normalisation of harmful behaviour and improve women’s safety, amid an influx of allegations of workplace sexual harassment and of dangerous hazing at private colleges.

    Following a 2018 investigation into Sydney University’s St Paul’s College, led by former Sex Discrimination Commissioner Elizabeth Broderick, disturbing allegations have emerged this week claiming ‘humiliation-type behaviours’ among a group of male students. Separately, hospitality giant Merivale has faced claims of sexual harassment, exploitation and drug use at its high-profile Sydney venues. 

    Dr Cody credited last year’s introduction of a positive duty on Australian workplaces as a critical step forward towards eliminating harmful behaviours, but she believes far more work needs to be done to ensure widespread compliance.  

    “The recent allegations of sexual harassment and discrimination in Australia’s hospitality industry are deeply troubling and highlight how important it is that Australian workplaces implement the positive duty in a way that works for them,” Dr Cody said. 

    “Senior leaders play a vital role in creating a culture of respect, accountability, and inclusion. When leaders visibly uphold these values, they set an example that resonates throughout their organisations.

    “These recent reports serve as a powerful reminder to employers across industries that workplace safety and respect must be actively championed from the top down.”

    “It is also essential we have men and women in leadership and people from a range of race and cultural backgrounds so that new, respectful work and study cultures can be created.

    “We all have a role in this effort to create a safer, more respectful Australia where everyone can live free from violence and discrimination, with respect and dignity.”

    ENDS | Media contact: media@humanrights.gov.au or 0457 281 897

    MIL OSI News

  • MIL-OSI Australia: Optus in court for alleged unconscionable sales and debt collection

    Source: Australian Competition and Consumer Commission

    The ACCC has commenced proceedings in the Federal Court alleging that Optus Mobile Pty Ltd (Optus) engaged in unconscionable conduct in contravention of the Australian Consumer Law when selling telecommunications goods and services to hundreds of consumers, that they often did not want or need, and in some cases then pursuing consumers for debts resulting from these sales.

    Many of these consumers were experiencing vulnerability and/or disadvantage, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, or having limited financial and legal literacy.

    Many of the impacted consumers were First Nations Australians from regional and remote areas or people from culturally and linguistically diverse backgrounds.

    “We allege Optus’ conduct disproportionately impacted consumers experiencing vulnerability and/or disadvantage, and that these practices were incentivised by the commission-based remuneration for sales staff. In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers,” ACCC Chair Gina Cass-Gottlieb said.

    “This case concerns allegations of very serious conduct, as our case is that Optus sold goods to consumers experiencing vulnerability which they did not need, did not want and could not afford.”

    “We also allege that Optus’ unconscionable conduct continued after management became aware of deficiencies in its systems that were being exploited by sales staff, and despite this, failed to implement fixes,” Ms Cass Gottlieb said.

    Alleged conduct

    The ACCC’s case against Optus involves allegations that Optus acted unconscionably in its dealings with about 429 consumers by engaging in inappropriate sales conduct and/or pursuing consumers for debts, including when it knew contracts were created fraudulently.

    The conduct included Optus allegedly putting undue pressure on some of these consumers to purchase a large number of products, including expensive phones and accessories, and not undertaking coverage checks to inform the consumer whether they would have Optus coverage where they lived.

    It is alleged that Optus engaged debt collectors to pursue many of these consumers, despite knowing that they were subject to inappropriate or fraudulent sales conduct.

    The alleged conduct involves 363 consumers from two Optus Darwin stores, 42 consumers from the Optus Mount Isa store and 24 individual consumers from store locations across Australia.

    “We are taking this action against Optus and seeking consumer redress in relation to the hundreds of consumers affected by this alleged unconscionable conduct,” Ms Cass-Gottlieb said.

    The ACCC began its investigation after receiving a referral from the Telecommunications Industry Ombudsman about concerns regarding Optus’ sales practices to consumers experiencing vulnerability and/or disadvantage.

    The ACCC is seeking declarations and orders for penalties, non-party consumer redress, publication orders, a compliance program, and costs.

    Optus’ Darwin stores conduct

    The ACCC alleges unconscionable conduct at Optus’ two licensee-operated stores in Darwin, where nearly all staff allegedly engaged in inappropriate sales conduct, encouraged by senior store management, during a two-year period to June 2023. The conduct included not carrying out coverage checks, despite some of the 363 impacted consumers being First Nations Australians from regional, remote and very remote parts of the Northern Territory where there was no Optus coverage available.

    The ACCC’s allegations include that Optus staff manipulated credit checks, oversold and overpriced accessories, and sold consumers phones and plans they could not afford at the Darwin stores.

    Optus’ Mount Isa store conduct

    The ACCC also alleges Optus acted unconscionably by pursuing debts for at least 42 consumers from Mount Isa and remote areas of the Northern Territory, despite some senior executives knowing that those debts related to contracts for goods and services which were fraudulently created by a staff member at a licensee-operated Optus store in Mount Isa, without the knowledge of the affected consumers.

    Optus’ conduct to individual consumers

    The ACCC alleges Optus acted unconscionably in its dealings with 24 individual consumers by engaging in inappropriate sales conduct. This included by applying undue pressure and inducing the consumers to purchase a large number of goods and services.

    The alleged conduct includes claims that sales staff manipulated credit check results without the consumers’ knowledge to sell goods and services that they could not afford, while failing to explain the terms and conditions of contracts in an understandable manner. Despite knowing about this alleged conduct, Optus pursued debt collection activities in many cases, and referred and sold the consumers’ debts to third party debt collection agencies.

    In relation to four of these consumers, the ACCC also claims that Optus made false, misleading or deceptive representations that particular goods were ‘free’ when that was not in fact the case.

    “Many consumers suffered financial harm, incurring thousands of dollars of debt and non-financial harm, such as shame, fear, and emotional distress about the debts or being pursued by debt collectors,” Ms Cass-Gottlieb said.

    “Thankfully many consumers were supported by financial counsellors, carers and other advocates who gave their time and effort to support consumers to eventually seek resolution of Optus’ conduct.”

    “We will take appropriate enforcement action against breaches of the Australian Consumer Law, and we pay particular attention to conduct that disproportionately impacts consumers who are experiencing vulnerability or disadvantage.”

    An example of the alleged conduct includes a person living with an intellectual disability which impacts their ability to speak and understand financial matters went into an Optus store and was sold an expensive phone, a business phone contract under a false ABN, a new NBN internet plan and accessories, though their disability was evident to Optus staff. The person did not want or need the majority of these items, and was upset and embarrassed about the unwanted and expensive items they were sold. When the person’s representative went to the store to return the items, the Optus staff refused to cancel the contracts and it was only through the intervention of a financial counsellor that Optus cancelled the contracts.

    Background

    Optus is Australia’s second largest telecommunications provider. It is a wholly-owned subsidiary of Singtel Optus Pty Ltd, a foreign owned private company.

    In Australia, Optus’ stores are either:

    • owned and operated directly by Optus RetailCo Pty Ltd; or
    • owned and operated through third party licensees, through Retail License Agreements. For example, all Optus stores in the Adelaide region are owned and operated by Mavaya Pty Ltd, and all Optus stores in the Northern Territory, as well as several in regional Queensland, are owned and operated by Suntel Communications Pty Ltd.

     Statement of claim

    ACCC v Optus Mobile Pty Ltd – Introduction to Statement of Claim ( PDF 67.78 KB )

    The ACCC has commenced this proceeding with a Statement of Claim. The document available via the link contains the introduction section of the ACCC’s Statement of Claim in relation to this matter, which contains a summary of the ACCC’s case. We will not be uploading further documents.

    MIL OSI News

  • MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 third quarter and year-to-date ended September 30, 2024.

    2024 Third Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

    • 86 consecutive quarters of profitability
    • Net income increased 36.4% to $6.5 million, or $0.48 per basic and diluted share, from $4.8 million, or $0.35 per basic and diluted share, and net income expanded 14.7% from the 2024 second quarter
    • Net interest margin increased 12 basis points to 2.71%
    • Efficiency ratio improved to 67.98%, compared to 73.07% for the same period a year ago, and 69.03% for the 2024 second quarter
    • Total net loans remain stable at $2.54 billion at September 30, 2024
    • Total assets increased 4.8% to a record $3.39 billion
    • Deposits increased 4.3% to a record $2.68 billion
    • Stockholders’ equity increased 10.6% to a record $335.4 million
    • Asset quality remains at historically strong levels with nonperforming loans of only $2.9 million at September 30, 2024, compared to $22.4 million at September 30, 2023
    • Allowance for credit losses was 879.37% of nonperforming loans
    • F&M ended the quarter with excellent liquidity levels, and over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%
    • According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets

    Lars B. Eller, President and Chief Executive Officer, stated, “F&M produced excellent earnings growth on a year-over-year and sequential basis, driven by higher net interest income, historically strong asset quality, and prudent expense management. Most importantly, our third quarter results reflect the talent of our associates, as we continue to work hard to drive operating improvements at F&M, serve our local Ohio, Indiana, and Michigan communities, and position F&M for long-term success. In addition, I am pleased to report that F&M was the third largest bank out of 58 financial institutions within the markets we compete, according to the FDIC, reflecting the leading value we provide to our local communities. In fact, F&M is the number one bank, based on deposits, in almost half of the communities in which we operate.”  

    Income Statement
    Net income for the 2024 third quarter ended September 30, 2024, was $6.5 million, compared to $4.8 million for the same period last year. Net income per basic and diluted share for the 2024 third quarter was $0.48, compared to $0.35 for the same period last year. Net income for the 2024 nine months ended September 30, 2024, was $17.6 million, compared to $17.2 million for the same period last year. Net income per basic and diluted share for the 2024 nine months was $1.28, compared to $1.26 for the same period last year.

    Mr. Eller continued, “Our 2024 third quarter and year-to-date performance demonstrate the success of the near-term strategies we are pursuing to navigate a complex operating environment and improve earnings. Most importantly, while the demand for loans is high across our markets, our approach to risk and pricing remains conservative. This near-term strategy has contributed to excellent asset quality. In addition, we continue to focus on strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we have added over 5,600 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended the quarter with a loan-to-deposit ratio of 93.6%, compared to 97.2% at September 30, 2023, and 96.0% at June 30, 2024. Our third quarter of 2024 loan-to-deposit ratio was the lowest quarterly value in two years. The final near-term strategy we are pursuing is focused on controlling expenses, and I am encouraged by the continued year-over-year and sequential improvement in our efficiency ratio. This reflects the opportunities we are pursuing to manage operating costs and expand productivity.”

    Deposits
    At September 30, 2024, total deposits were $2.68 billion, an increase of 4.3% from September 30, 2023. The Company’s cost of interest-bearing liabilities was 3.2% for the quarter ended September 30, 2024, compared to 2.82% for the quarter ended September 30, 2023, and 3.02% for the 2023 fourth quarter ended December 31, 2023.

    Loan Portfolio and Asset Quality
    “F&M’s teams continue to do an excellent job managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the quarter ended December 31, 2023, our yield on earning assets has increased by 34 basis points, compared to a 19 basis point increase in our cost of interest bearing liabilities – representing the third consecutive quarter our yield on earning assets has outpaced our cost of interest bearing liabilities. We expect this trend will continue as more of our loan portfolio reprices in 2024,” continued Mr. Eller.

    Total loans, net at September 30, 2024, increased 0.3%, or by $8.7 million to $2.54 billion, compared to $2.53 billion at September 30, 2023. The year-over-year growth was driven by higher consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower commercial real estate, agricultural real estate, and consumer loans.

    F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $2.9 million, or 0.11% of total loans at September 30, 2024, compared to $22.4 million, or 0.89% of total loans at September 30, 2023, and $22.4 million, or 0.87% at December 31, 2023.

    F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at September 30, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.3% of the Company’s total loan portfolio at September 30, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $880,000.

    F&M’s CRE portfolio included the following categories at September 30, 2024:

    CRE Category   Dollar
    Balance
      Percent of CRE Portfolio(*)   Percent of Total Loan Portfolio(*)
                 
    Industrial   $ 274,953   21.1 %   10.8 %
    Retail   $ 237,622   18.2 %   9.4 %
    Multi-family   $ 223,926   17.2 %   8.8 %
    Hotels   $ 141,642   10.9 %   5.6 %
    Office   $ 134,973   10.4 %   5.3 %
    Gas Stations   $ 62,028   4.8 %   2.5 %
    Food Service   $ 46,526   3.6 %   1.8 %
    Development   $ 30,999   2.4 %   1.2 %
    Senior Living   $ 29,866   2.3 %   1.2 %
    Auto Dealers   $ 25,068   1.9 %   1.0 %
    Other   $ 93,557   7.2 %   3.7 %
    Total CRE   $ 1,301,160   100.0 %   51.3 %

             * Numbers have been rounded

    At September 30, 2024, the Company’s allowance for credit losses to nonperforming loans was 879.37%, compared to 112.61% at September 30, 2023, and 111.95% at December 31, 2023. The allowance to total loans was 1.01% at September 30, 2024, compared to 1.00% at September 30, 2023. Including accretable yield adjustments, associated with the Company’s recent acquisitions, F&M’s allowance for credit losses to total loans was 1.10% at September 30, 2024, compared to 1.18% at September 30, 2023.

    Mr. Eller concluded, “With two months remaining in 2024, I am encouraged by F&M’s strong financial and operating performance to date. F&M ended the quarter with record stockholders’ equity, historically strong asset quality, record deposits, and excellent liquidity levels with over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%. We remain focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. As a result, F&M’s financial and operating performance continues to strengthen and I believe the Company is well positioned to create lasting value for our communities, customers, team members, and shareholders.”

    Stockholders’ Equity and Dividends
    Total stockholders’ equity increased 10.6% to $335.4 million, or $24.48 per share at September 30, 2024, from $303.2 million, or $22.19 per share at September 30, 2023. The Company’s Tier 1 leverage ratio of 8.04%, remained stable compared to September 30, 2023.

    Tangible stockholders’ equity increased to $242.8 million at September 30, 2024, compared to $208.8 million at September 30, 2023. On a per share basis, tangible stockholders’ equity at September 30, 2024, was $17.72 per share, compared to $15.28 per share at September 30, 2023.

    For the nine months ended September 30, 2024, the Company has declared cash dividends of $0.66125 per share, which is a 5.0% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the nine months ended September 30, 2024, the dividend payout ratio was 50.99% compared to 49.50% for the same period last year.

    About Farmers & Merchants State Bank:
    Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

    Safe Harbor Statement
    Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

    Non-GAAP Financial Measures
    This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

     
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
    (Unaudited) (in thousands of dollars, except per share data)
             
          Three Months Ended   Nine Months Ended
          September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
    Interest Income                              
    Loans, including fees     $ 36,873     $ 36,593     $ 35,200     $ 34,493   $ 33,783     $ 108,666     $ 94,851  
    Debt securities:                              
    U.S. Treasury and government agencies       1,467       1,148       1,045       987     1,005       3,660       3,103  
    Municipalities       387       389       394       397     392       1,170       1,201  
    Dividends       334       327       333       365     246       994       517  
    Federal funds sold       7       7       7       8     6       21       36  
    Other       2,833       2,702       1,675       2,020     927       7,210       1,830  
    Total interest income       41,901       41,166       38,654       38,270     36,359       121,721       101,538  
    Interest Expense                              
    Deposits       16,947       16,488       15,279       15,015     13,323       48,714       31,908  
    Federal funds purchased and securities sold under agreements to repurchase       277       276       284       293     349       837       1,181  
    Borrowed funds       2,804       2,742       2,689       2,742     2,741       8,235       6,134  
    Subordinated notes       284       285       284       285     284       853       853  
    Total interest expense       20,312       19,791       18,536       18,335     16,697       58,639       40,076  
    Net Interest Income – Before Provision for Credit Losses     21,589       21,375       20,118       19,935     19,662       63,082       61,462  
    Provision for Credit Losses – Loans       282       605       (289 )     278     460       598       1,420  
    Provision for Credit Losses – Off Balance Sheet Credit Exposures   (267 )     (18 )     (266 )     189     (76 )     (551 )     (143 )
    Net Interest Income After Provision for Credit Losses       21,574       20,788       20,673       19,468     19,278       63,035       60,185  
    Noninterest Income                              
    Customer service fees       300       189       598       415     248       1,087       917  
    Other service charges and fees       1,155       1,085       1,057       1,090     1,133       3,297       3,253  
    Interchange income       1,315       1,330       1,429       1,310     1,266       4,074       4,008  
    Loan servicing income       710       513       539       666     502       1,762       3,739  
    Net gain on sale of loans       215       314       107       230     294       636       469  
    Increase in cash surrender value of bank owned life insurance       265       236       216       216     221       717       618  
    Net loss on sale of available-for-sale securities                                         (891 )
    Total noninterest income       3,960       3,667       3,946       3,927     3,664       11,573       12,113  
    Noninterest Expense                              
    Salaries and wages       7,713       7,589       7,846       6,981     6,777       23,148       19,934  
    Employee benefits       2,112       2,112       2,171       1,218     2,066       6,395       6,302  
    Net occupancy expense       1,054       999       1,027       1,187     950       3,080       2,646  
    Furniture and equipment       1,472       1,407       1,353       1,370     1,189       4,232       3,652  
    Data processing       339       448       500       785     840       1,287       2,362  
    Franchise taxes       410       265       555       308     434       1,230       1,179  
    ATM expense       472       397       473       665     640       1,342       1,946  
    Advertising       597       519       530       397     865       1,646       2,209  
    Net (gain) loss on sale of other assets owned             (49 )           86     49       (49 )     49  
    FDIC assessment       516       507       580       594     586       1,603       1,388  
    Servicing rights amortization – net       219       187       168       182     106       574       429  
    Loan expense       244       251       229       246     241       724       809  
    Consulting fees       251       198       186       192     179       635       640  
    Professional fees       453       527       445       331     358       1,425       1,099  
    Intangible asset amortization       445       444       445       446     445       1,334       1,334  
    Other general and administrative       1,128       1,495       1,333       1,532     1,319       3,956       4,841  
    Total noninterest expense       17,425       17,296       17,841       16,520     17,044       52,562       50,819  
    Income Before Income Taxes       8,109       7,159       6,778       6,875     5,898       22,046       21,479  
    Income Taxes       1,593       1,477       1,419       1,332     1,121       4,489       4,235  
    Net Income       6,516       5,682       5,359       5,543     4,777       17,557       17,244  
    Other Comprehensive Income (Loss) (Net of Tax):                              
    Net unrealized gain (loss) on available-for-sale securities     11,664       2,531       (1,995 )     13,261     (4,514 )     12,200       (2,480 )
    Reclassification adjustment for realized loss on sale of available-for-sale securities                                         891  
    Net unrealized gain (loss) on available-for-sale securities     11,664       2,531       (1,995 )     13,261     (4,514 )     12,200       (1,589 )
    Tax expense (benefit)       2,449       531       (418 )     2,784     (947 )     2,562       (333 )
    Other comprehensive income (loss)       9,215       2,000       (1,577 )     10,477     (3,567 )     9,638       (1,256 )
    Comprehensive Income     $ 15,731     $ 7,682     $ 3,782     $ 16,020   $ 1,210     $ 27,195     $ 15,988  
    Basic Earnings Per Share     $ 0.48     $ 0.42     $ 0.39     $ 0.41   $ 0.35     $ 1.28     $ 1.26  
    Diluted Earnings Per Share     $ 0.48     $ 0.42     $ 0.39     $ 0.41   $ 0.35     $ 1.28     $ 1.26  
    Dividends Declared     $ 0.22125     $ 0.22     $ 0.22     $ 0.22   $ 0.21     $ 0.66125     $ 0.63  
                                   
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited) (in thousands of dollars, except per share data)
     
          September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
          (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)
    Assets                    
    Cash and due from banks   $ 244,572     $ 191,785     $ 186,541     $ 140,917     $ 151,711  
    Federal funds sold     932       1,283       1,241       1,284       1,471  
      Total cash and cash equivalents     245,504       193,068       187,782       142,201       153,182  
                           
    Interest-bearing time deposits     2,727       3,221       2,735       2,740       2,989  
    Securities – available-for-sale     404,881       365,209       347,516       358,478       348,255  
    Other securities, at cost     15,028       14,721       14,744       17,138       16,995  
    Loans held for sale     1,706       1,628       2,410       1,576       1,039  
    Loans, net of allowance for credit losses of $25,484 9/30/24 and $25,024 12/31/23     2,512,852       2,534,468       2,516,687       2,556,167       2,504,329  
    Premises and equipment     33,779       34,507       35,007       35,790       31,723  
    Construction in progress     35       38       9       8       3,044  
    Goodwill     86,358       86,358       86,358       86,358       86,358  
    Loan servicing rights     5,644       5,504       5,555       5,648       5,687  
    Bank owned life insurance     34,624       34,359       34,123       33,907       33,691  
    Other assets     46,047       49,552       54,628       43,218       47,388  
                           
    Total Assets   $ 3,389,185     $ 3,322,633     $ 3,287,554     $ 3,283,229     $ 3,234,680  
                           
      Liabilities and Stockholders’ Equity                    
    Liabilities                    
    Deposits                    
      Noninterest-bearing   $ 481,444     $ 479,069     $ 510,731     $ 528,465     $ 505,358  
      Interest-bearing                    
      NOW accounts     865,617       821,145       829,236       816,790       778,133  
      Savings     661,565       673,284       635,430       599,191       591,344  
      Time     676,187       667,592       645,985       663,017       700,445  
      Total deposits     2,684,813       2,641,090       2,621,382       2,607,463       2,575,280  
                           
    Federal funds purchased and securities sold under agreements to repurchase     27,292       27,218       28,218       28,218       30,527  
    Federal Home Loan Bank (FHLB) advances     263,081       266,102       256,628       265,750       266,286  
    Subordinated notes, net of unamortized issuance costs     34,789       34,759       34,731       34,702       34,673  
    Dividend payable     2,998       2,975       2,975       2,974       2,838  
    Accrued expenses and other liabilities     40,832       27,825       25,930       27,579       21,892  
      Total liabilities     3,053,805       2,999,969       2,969,864       2,966,686       2,931,496  
                           
    Commitments and Contingencies                    
                           
    Stockholders’ Equity                    
    Common stock – No par value 20,000,000 shares authorized; issued                    
    14,564,425 shares 9/30/24 and 12/31/23; outstanding 13,702,593     135,193       135,829       135,482       135,515       135,171  
    shares 9/30/24 and 13,664,641 shares 12/31/23                    
    Treasury stock – 861,832 shares 9/30/24 and 899,784 shares 12/31/23     (10,904 )     (11,006 )     (10,851 )     (11,040 )     (11,008 )
    Retained earnings     230,465       226,430       223,648       221,080       218,510  
    Accumulated other comprehensive loss     (19,374 )     (28,589 )     (30,589 )     (29,012 )     (39,489 )
      Total stockholders’ equity     335,380       322,664       317,690       316,543       303,184  
                           
    Total Liabilities and Stockholders’ Equity   $ 3,389,185     $ 3,322,633     $ 3,287,554     $ 3,283,229     $ 3,234,680  
                           
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    SELECT FINANCIAL DATA
                                               
        For the Three Months Ended   For the Nine Months Ended
    Selected financial data   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
    Return on average assets     0.78 %     0.69 %     0.66 %     0.67 %     0.59 %     0.71 %     0.73 %
    Return on average equity     7.93 %     7.13 %     6.76 %     7.27 %     6.26 %     7.28 %     7.52 %
    Yield on earning assets     5.27 %     5.22 %     5.00 %     4.93 %     4.79 %     5.17 %     4.57 %
    Cost of interest bearing liabilities     3.21 %     3.18 %     3.06 %     3.02 %     2.82 %     3.16 %     2.35 %
    Net interest spread     2.06 %     2.04 %     1.94 %     1.91 %     1.97 %     2.01 %     2.22 %
    Net interest margin     2.71 %     2.71 %     2.60 %     2.57 %     2.59 %     2.68 %     2.77 %
    Efficiency     67.98 %     69.03 %     74.08 %     69.23 %     73.07 %     70.36 %     68.24 %
    Dividend payout ratio     45.99 %     52.35 %     55.52 %     54.23 %     60.07 %     50.99 %     49.50 %
    Tangible book value per share   $ 17.72     $ 16.79     $ 16.39     $ 16.29     $ 15.28              
    Tier 1 leverage ratio     8.04 %     8.02 %     8.40 %     8.20 %     8.02 %            
    Average shares outstanding     13,687,119       13,681,501       13,671,166       13,665,773       13,650,823       13,679,955       13,633,101  
                                               
    Loans   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023            
    (Dollar amounts in thousands)                                          
    Commercial real estate   $ 1,301,160     $ 1,303,598     $ 1,304,400     $ 1,337,766     $ 1,304,118              
    Agricultural real estate     220,328       222,558       227,455       223,791       225,672              
    Consumer real estate     524,055       525,902       525,178       521,895       512,973              
    Commercial and industrial     260,732       268,426       256,051       254,935       250,891              
    Agricultural     137,252       142,909       127,670       132,560       123,735              
    Consumer     67,394       70,918       74,819       79,591       83,024              
    Other     25,916       26,449       26,776       30,136       31,083              
    Less: Net deferred loan fees, costs and other (1)     1,499       (1,022 )     (982 )     517       (1,890 )            
    Total loans, net   $ 2,538,336     $ 2,559,738     $ 2,541,367     $ 2,581,191     $ 2,529,606              
                                               
                                               
    Asset quality data   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023            
    (Dollar amounts in thousands)                                          
    Nonaccrual loans   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
    90 day past due and accruing   $     $     $     $     $              
    Nonperforming loans   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
    Other real estate owned   $     $     $     $     $              
    Nonperforming assets   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
                                               
                                               
    Allowance for credit losses   $ 25,484     $ 25,270     $ 24,680     $ 25,024     $ 25,277              
    Allowance for unfunded     1,661       1,928       1,946       2,212       2,023              
    Total Allowance for Credit Losses   $ 27,145     $ 27,198     $ 26,626     $ 27,236     $ 27,300              
    Allowance for credit losses/total loans     1.01 %     0.99 %     0.97 %     0.97 %     1.00 %            
    Adjusted credit losses with accretable yield/total loans     1.10 %     1.10 %     1.11 %     1.13 %     1.18 %            
    Net charge-offs:                                          
    Quarter-to-date   $ 68     $ 15     $ 55     $ 531     $ 93              
    Year-to-date   $ 138     $ 70     $ 55     $ 551     $ 20              
    Net charge-offs to average loans                                          
    Quarter-to-date     0.00 %     0.00 %     0.00 %     0.02 %     0.00 %            
    Year-to-date     0.01 %     0.00 %     0.00 %     0.02 %     0.00 %            
    Nonperforming loans/total loans     0.11 %     0.10 %     0.76 %     0.87 %     0.89 %            
    Allowance for credit losses/nonperforming loans     879.37 %     1016.08 %     127.28 %     111.95 %     112.61 %            
    NPA coverage ratio     879.37 %     1016.08 %     127.28 %     111.95 %     112.61 %            
                                               
    (1) Includes carrying value adjustments of $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans            
     
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
                             
        For the Three Months Ended   For the Three Months Ended
        September 30, 2024   September 30, 2023
    Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate
    Loans   $ 2,551,899   $ 36,873   5.78 %   $ 2,536,885   $ 33,783   5.33 %
    Taxable investment securities     415,943     2,107   2.03 %     393,910     1,559   1.58 %
    Tax-exempt investment securities     19,661     81   2.09 %     23,986     84   1.77 %
    Fed funds sold & other     197,258     2,840   5.76 %     85,515     933   4.36 %
    Total Interest Earning Assets     3,184,761   $ 41,901   5.27 %     3,040,296   $ 36,359   4.79 %
                             
    Nonearning Assets     168,055             180,193        
                             
    Total Assets   $ 3,352,816           $ 3,220,489        
                             
    Interest Bearing Liabilities:                        
    Savings deposits   $ 1,538,387   $ 10,691   2.78 %   $ 1,367,168   $ 7,673   2.24 %
    Other time deposits     667,224     6,256   3.75 %     667,880     5,650   3.38 %
    Other borrowed money     264,539     2,804   4.24 %     266,467     2,741   4.11 %
    Fed funds purchased & securities sold under agreement to repurchase     27,481     277   4.03 %     34,128     349   4.09 %
    Subordinated notes     34,769     284   3.27 %     34,654     284   3.28 %
    Total Interest Bearing Liabilities   $ 2,532,400   $ 20,312   3.21 %   $ 2,370,297   $ 16,697   2.82 %
                             
    Noninterest Bearing Liabilities     491,851             544,801        
                             
    Stockholders’ Equity   $ 328,565           $ 305,391        
                             
    Net Interest Income and Interest Rate Spread       $ 21,589   2.06 %       $ 19,662   1.97 %
                             
    Net Interest Margin           2.71 %           2.59 %
                             
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
                             
                             
        For the Nine Months Ended   For the Nine Months Ended
        September 30, 2024   September 30, 2023
    Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate
    Loans   $ 2,561,774   $ 108,666   5.66 %   $ 2,470,770   $ 94,851   5.12 %
    Taxable investment securities     397,466     5,575   1.87 %     396,917     4,544   1.53 %
    Tax-exempt investment securities     20,684     249   2.03 %     24,865     277   1.88 %
    Fed funds sold & other     165,227     7,231   5.84 %     67,869     1,866   3.67 %
    Total Interest Earning Assets     3,145,151   $ 121,721   5.17 %     2,960,421   $ 101,538   4.57 %
                             
    Nonearning Assets     161,113             176,568        
                             
    Total Assets   $ 3,306,264           $ 3,136,989        
                             
    Interest Bearing Liabilities:                        
    Savings deposits   $ 1,487,809   $ 30,291   2.71 %   $ 1,373,110   $ 18,854   1.83 %
    Other time deposits     662,129     18,423   3.71 %     620,071     13,054   2.81 %
    Other borrowed money     264,310     8,235   4.15 %     204,927     6,134   3.99 %
    Fed funds purchased & securities sold under agreement to repurchase     27,887     837   4.00 %     37,649     1,181   4.18 %
    Subordinated notes     34,741     853   3.27 %     34,625     853   3.28 %
    Total Interest Bearing Liabilities   $ 2,476,876   $ 58,639   3.16 %   $ 2,270,382   $ 40,076   2.35 %
                             
    Noninterest Bearing Liabilities     507,843             561,001        
                             
    Stockholders’ Equity   $ 321,545           $ 305,606        
                             
    Net Interest Income and Interest Rate Spread       $ 63,082   2.01 %       $ 61,462   2.22 %
                             
    Net Interest Margin           2.68 %           2.77 %
                             
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
                             
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
     
                                         
      For the Three Months Ended September 30, 2024   For the Three Months Ended September 30, 2023  
      As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference  
      $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield  
    Interest Earning Assets:                                    
    Loans $ 36,873 5.78 %   $ 36,149 5.67 %   $ 724   0.11 %   $ 33,783 5.33 %   $ 32,631 5.15 %   $ 1,152   0.18 %  
    Taxable investment securities   2,107 2.03 %     2,107 2.03 %       0.00 %     1,559 1.58 %     1,559 1.58 %       0.00 %  
    Tax-exempt investment securities   81 2.09 %     81 2.09 %       0.00 %     84 1.77 %     84 1.77 %       0.00 %  
    Fed funds sold & other   2,840 5.76 %     2,840 5.76 %       0.00 %     933 4.36 %     933 4.36 %       0.00 %  
    Total Interest Earning Assets   41,901 5.27 %     41,177 5.17 %     724   0.10 %     36,359 4.79 %     35,207 4.64 %     1,152   0.15 %  
                                         
    Interest Bearing Liabilities:                                    
    Savings deposits $ 10,691 2.78 %   $ 10,691 2.78 %   $   0.00 %   $ 7,673 2.24 %   $ 7,673 2.24 %   $   0.00 %  
    Other time deposits   6,256 3.75 %     6,256 3.75 %       0.00 %     5,650 3.38 %     5,500 3.29 %     150   0.09 %  
    Other borrowed money   2,804 4.24 %     2,800 4.23 %     4   0.01 %     2,741 4.11 %     2,759 4.14 %     (18 ) -0.03 %  
    Federal funds purchased and securities sold under agreement to repurchase   277 4.03 %     277 4.03 %       0.00 %     349 4.09 %     349 4.09 %       0.00 %  
    Subordinated notes   284 3.27 %     284 3.27 %       0.00 %     284 3.28 %     284 3.28 %       0.00 %  
    Total Interest Bearing Liabilities   20,312 3.21 %     20,308 3.21 %     4   0.00 %     16,697 2.82 %     16,565 2.80 %     132   0.02 %  
                                         
    Interest/Dividend income/yield   41,901 5.27 %     41,177 5.17 %     724   0.10 %     36,359 4.79 %     35,207 4.64 %     1,152   0.15 %  
    Interest Expense / yield   20,312 3.21 %     20,308 3.21 %     4   0.00 %     16,697 2.82 %     16,565 2.80 %     132   0.02 %  
    Net Interest Spread   21,589 2.06 %     20,869 1.96 %     720   0.10 %     19,662 1.97 %     18,642 1.84 %     1,020   0.13 %  
    Net Interest Margin   2.71 %     2.62 %     0.09 %     2.59 %     2.46 %     0.13 %  
                                         
                                         
      For the Nine Months Ended September 30, 2024   For the Nine Months Ended September 30, 2023  
      As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference  
      $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield  
    Interest Earning Assets:                                    
    Loans $ 108,666 5.66 %   $ 106,588 5.55 %   $ 2,078   0.11 %   $ 94,851 5.12 %   $ 92,364 4.99 %   $ 2,487   0.13 %  
    Taxable investment securities   5,575 1.87 %     5,575 1.87 %       0.00 %     4,544 1.53 %     4,544 1.53 %       0.00 %  
    Tax-exempt investment securities   249 2.03 %     249 2.03 %       0.00 %     277 1.88 %     277 1.88 %       0.00 %  
    Fed funds sold & other   7,231 5.84 %     7,231 5.84 %       0.00 %     1,866 3.67 %     1,866 3.67 %       0.00 %  
     Total Interest Earning Assets   121,721 5.17 %     119,643 5.08 %     2,078   0.09 %     101,538 4.57 %     99,051 4.47 %     2,487   0.10 %  
                                         
    Interest Bearing Liabilities:                                    
    Savings deposits $ 30,291 2.71 %   $ 30,291 2.71 %   $   0.00 %   $ 18,854 1.83 %   $ 18,854 1.83 %   $   0.00 %  
    Other time deposits   18,423 3.71 %     18,423 3.71 %       0.00 %     13,054 2.81 %     13,458 2.89 %     (404 ) -0.08 %  
    Other borrowed money   8,235 4.15 %     8,254 4.16 %     (19 ) -0.01 %     6,134 3.99 %     6,187 4.03 %     (53 ) -0.04 %  
    Federal funds purchased and securities sold under agreement to repurchase   837 4.00 %     837 4.00 %       0.00 %     1,181 4.18 %     1,181 4.18 %       0.00 %  
    Subordinated notes   853 3.27 %     853 3.27 %       0.00 %     853 3.28 %     853 3.28 %       0.00 %  
    Total Interest Bearing Liabilities   58,639 3.16 %     58,658 3.16 %     (19 ) 0.00 %     40,076 2.35 %     40,533 2.38 %     (457 ) -0.03 %  
                                         
    Interest/Dividend income/yield   121,721 5.17 %     119,643 5.08 %     2,078   0.09 %     101,538 4.57 %     99,051 4.47 %     2,487   0.10 %  
    Interest Expense / yield   58,639 3.16 %     58,658 3.16 %     (19 ) 0.00 %     40,076 2.35 %     40,533 2.38 %     (457 ) -0.03 %  
    Net Interest Spread   63,082 2.01 %     60,985 1.92 %     2,097   0.09 %     61,462 2.22 %     58,518 2.09 %     2,944   0.13 %  
    Net Interest Margin   2.68 %     2.59 %     0.09 %     2.77 %     2.64 %     0.13 %  
                                         
    Company Contact: Investor and Media Contact:
    Lars B. Eller
    President and Chief Executive Officer Farmers & Merchants Bancorp, Inc.
    (419) 446-2501
    leller@fm.bank
    Andrew M. Berger
    Managing Director
    SM Berger & Company, Inc.
    (216) 464-6400
    andrew@smberger.com

    The MIL Network

  • MIL-OSI China: China publishes world’s first international standard for stem cell data

    Source: People’s Republic of China – State Council News

    BEIJING, Oct. 30 — The world’s first international standard for stem cell data, ISO8472-1, has been officially released, the Institute of Zoology of the Chinese Academy of Sciences said Wednesday.

    This standard is expected to enhance global stem cell data management and make contributions to the advancement of stem cell research and applications, according to the institute.

    As biotechnology advances rapidly worldwide, stem cell data is proliferating. However, the lack of international standards for stem cell data has resulted in issues such as unregulated data management and low efficiency in data sharing and application.

    ISO8472-1, co-formulated by experts from China, Japan, the Republic of Korea, Germany, the United Kingdom, the United States, France, and other countries, stipulates a framework for the interoperability of stem cell data. It is applicable to related databases, data management systems, web interfaces, and more in the field of stem cell research.

    The release of ISO8472-1 will provide standard and guidance for data management in the field of stem cells and offer a systematic framework for the development of subsequent international standards for stem cell data, said Qiao Gexia, director of the Institute of Zoology.

    MIL OSI China News