Category: Business

  • MIL-OSI USA: Attorney General Alan Wilson calls for action against counterfeit weight loss drug makersRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson today led a 37-state and territory bipartisan coalition requesting that the Food and Drug Administration take swift action against bad actors who are endangering consumers with counterfeit forms of the weight loss and diabetes drugs Mounjaro, Zepbound, Ozempic, and Wegovy (GLP-1 drugs).

    “The popularity of these drugs is growing at a rate that exceeds production by licensed manufacturers and has opened the door for copycat products from countries like China and India to flow through the U.S. supply chain that are seriously harming consumers,” said Attorney General Wilson.

    The letter states that “online retailers are illegally selling the active ingredients of GLP-1 drugs directly to consumers, without a prescription. These retailers claim that the active ingredients they sell are ’for research purposes only’ or ’not for human consumption’.[1] In reality, these companies advertise directly to consumers on social media, claiming that their products are an easier and more affordable way to obtain GLP-1 drugs.[2] Much like with counterfeit versions, these active ingredients come from unregulated, undisclosed sources and pose risks of contamination and inclusion of foreign substances.[3]

    Attorney General Wilson also recently sent out a consumer alert warning consumers to be cautious when purchasing compounded Tirzepatide and Semaglutide, specifically in unapproved forms such as pills (only available via Rybelsus), sublingual drops, lozenges, or films taken under the tongue, topical skin patches, and nasal sprays.

    Attorney General Wilson said, “Protecting consumers is of utmost priority to me and the lengths that these counterfeiters are going to take advantage of consumers and endanger their health must be stopped.”

    The letter declares that the Food and Drug Administration has the expertise and resources to stop the bad conduct and deceptive practices by counterfeit drug manufacturers and that they should increase enforcement actions against compounding pharmacies illegally participating in this market. It also encourages the FDA to partner with state pharmacy boards to ensure compounded GLP-1 drugs are produced safely and in sanitary environments. 

    South Carolina co-led this bipartisan letter with Colorado, Illinois, and Tennessee and was joined by Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virgin Islands, Virginia, West Virginia, and Wisconsin.

    You can read the full letter here.

    You can read the consumer alert here.

    [1]  See Jordyn Belcourt et al., Bypassing Prescribers and Pharmacists: Online Purchasing of Semaglutide and Tirzepatide “For Research Purposes,” Annals of Pharmacotherapy, p.1 (2024).

    [2] See https://www.wsj.com/health/healthcare/ozempic-mounjaro-no-prescription-websites-726b3928

    [3] https://www.nbcnews.com/health/health-news/ozempic-underworld-black-market-obesity-drugs-rcna174680

    MIL OSI USA News

  • MIL-OSI USA: Legislation considered under suspension of the Rules of the House of Representatives during the week of February 24, 2025

    Source: US Congressional Budget Office

    The Majority Leader of the House of Representatives announces bills that will be considered under suspension of the rules in that chamber. Under suspension, floor debate is limited, all floor amendments are prohibited, points of order against the bill are waived, and final passage requires a two-thirds majority vote.

    At the request of the Majority Leader and the House Committee on the Budget, CBO estimates the effects of those bills on direct spending and revenues. CBO has limited time to review the legislation before consideration. Although it is possible in most cases to determine whether the legislation would affect direct spending or revenues, time may be insufficient to estimate the magnitude of those effects. If CBO has prepared estimates for similar or identical legislation, a more detailed assessment of budgetary effects, including effects on spending subject to appropriation, may be included.

    CBO’s estimates of the bills that have been posted for possible consideration under suspension of the rules during the week of February 24, 2025, include:

    • H.R. 250, To direct the Joint Committee on the Library to procure a statue of Benjamin Franklin for placement in the Capitol
    • H.R. 469, Semiquincentennial Congressional Time Capsule Act
    • H.R. 695, Medal of Honor Act, as amended
    • H.R. 754, Investing in Main Street Act of 2025
    • H.R. 788, DOE and SBA Research Act
    • H.R. 804, Rural Small Business Resilience Act
    • H.R. 818, SPUR Act
    • H.R. 825, Assisting Small Businesses Not Fraudsters Act
    • H.R. 828, SERV Act
    • H.R. 832, Small Business Advocacy Improvements Act of 2025

    MIL OSI USA News

  • MIL-OSI Security: New Orleans Man Guilty of Commodity Exchange Act Violation

    Source: Office of United States Attorneys

    NEW ORLEANS, LA – Acting U.S. Attorney Michael M. Simpson announced today that MICHAEL BRIAN DEPETRILLO, (“DEPETRILLO”), age 43, from New Orleans, pled guilty on February 18, 2025 to violating the Commodity Exchange Act, in violation of Title 7, United States Code, Section 13(a). DEPETRILLO faces up to ten (10) years imprisonment, up to three (3) years of supervised release, up to a $1,000,000.00 fine, plus the amount of any proceeds, and a mandatory $100 special assessment fee.

    According to court documents, DEPETRILLO was not properly registered as a Commodity Pool Operator (“CPO”) or an Associated Person (“AP”) of a CPO with the United States Commodity Futures Trading Commission (“CFTC”). DEPETRILLO, through various companies including, Meteor, LLC; NOLA FX Capital Management, LLC; ELC Enterprise Solutions, LLC; and Argosapolis, LLC, acted as a CPO and AP of a CPO and embezzled client funds in violation of federal law.     DEPETRILLO, while acting as an AP of unregistered CPOs, represented to victim investors that their funds would be pooled and invested in the NOLA FX FUND, that, in turn, would be used to trade foreign currency pairs on a leveraged, margined, or financed basis (“retail forex”).

    DEPETRILLO told investors that pooling their funds would be beneficial to them.  DEPETRILLO further represented, to certain investors, that either METEOR or NOLA FX CAPITAL managed the NOLA FX FUND.  In at least one representation, however, DEPETRILLO identified “NOLA FX Capital,” not the NOLA FX FUND, as the pooled investment vehicle.  DEPETRILLO lured investors by claiming he was investing their funds by trading in the foreign currency exchange, gold futures options, stocks, and cryptocurrency.  Instead of trading as promised, DEPETRILLO misappropriated pool funds.  DEPETRILLO then used these misappropriated pool funds to pay approximately $3,700,000 in “returns” to prior investors; approximately $575,000 on his own personal investments; approximately $425,000 on rent; approximately $200,000 on private air travel; and approximately $300,000 on online gambling, among other personal expenses.  To conceal DEPETRILLO’s misappropriation, he created and issued fictitious account statements in the names NOLA FX FUND and NOLA FX CAPITAL.  The fictitious account statements purported to show that: (1) DEPETRILLO had traded forex using pool participant funds, and (2) the NOLA FX FUND and NOLA FX CAPITAL had achieved significant trading returns for pool participants because of his profitable forex trading.  In fact, DEPETRILLO never deposited pool participant funds into trading accounts belonging to NOLA FX FUND or NOLA FX CAPITAL, and he never achieved the trading returns represented on the false account statements.  DEPETRILLO also did not set up the forex pool in the manner required by the regulations, did not receive pool participant funds in the name of the forex pool, and commingled pool participant funds with his own funds.  DEPETRILLO took in approximately $9.2 million in investor funds from approximately 55 victim investors during a seven-year period.

    Sentencing in this matter is scheduled for May 25, 2025, before United States District Judge Jay C. Zainey.

    The case is being investigated by the Federal Bureau of Investigation (“FBI”).  The FBI is seeking information that may help identify potential victims of DEPETRILLO’s fraudulent scheme.  FBI encourages the public to report any information to http://fbi.gov/depetrillovictims.

    The prosecution of this case is being handled by Assistant United States Attorneys Kathryn McHugh of the Financial Crimes Unit and Brian M. Klebba, Chief of the Financial Crimes Unit.

    MIL Security OSI

  • MIL-OSI Africa: Community engagement in the fight against cholera in Angola: Mr Celestino Mbambali – “The Lifesaver”

    Source: Africa Press Organisation – English (2) – Report:

    BRAZZAVILLE, Congo (Republic of the), February 19, 2025/APO Group/ —

    For more than twenty-five years of volunteering in his community, 55-year-old Celestino Mbambali has witnessed countless health emergencies, including cholera outbreaks. A qualified nurse by profession, he was always concerned about the lack of a health center in his neighborhood and, driven by his commitment to his neighbors, decided to take action. In the improvised space he built next to his house, he assists his neighbors on a daily basis, ensuring that they have access to first aid without having to travel long distances.

    In front of the modest sheet metal structure he built with his own hands, Celestino says: “Here, neighbors are family. Taking care of my community is a duty and a pleasure. From malaria cases to diarrheal diseases, I’m always available to help.”

    A resident of the Ngueto Maka neighborhood, in the municipality of Cabiri, Icolo e Bengo province, Celestino has become a health reference for his neighbors and is affectionately referred to as the “life saver” of his neighborhood. When he heard about the cholera outbreak on the radio, Celestino began a tireless door-to-door awareness campaign with his patients, warning them about the importance of drinking treated water, hand hygiene and safe food handling. With 512 cases and 19 deaths recorded by February 17 in his province, Celestino has become an essential partner in epidemiological surveillance, promptly reporting suspected cases to the health authorities.

    “So far, I’ve assisted 16 suspected cases of cholera, 10 of which have been confirmed. Thanks to the support of the health authorities, all the patients have had prompt access to treatment and have returned home alive.”

    The efforts of Celestino and other community volunteers have been essential at a critical time for Angola, which is facing a cholera outbreak in ten provinces, with a total of 4,235 cases and 150 deaths. “With his quick action and proximity to the community, we’ve managed to greatly reduce the risk of cholera deaths. Whenever he notifies us of a suspected case, we immediately send the ambulance to ensure the patient is brought for the necessary treatment. Collaboration with community volunteers has been essential in saving lives, especially in places that are further away from health facilities.’’ Says Dr. Santos, Municipal Health Director of Catete.

    The fight against cholera is not an individual one, and Celestino also has the support of community development agents (ADECOs) who reinforce social mobilization. With the support of The World Health Organization (WHO), as part of the response to the outbreak, door-to-door awareness-raising activities, educational sessions and the distribution of information materials on the prevention of the disease have been promoted throughout the country, reinforcing families’ awareness of safe hygiene and sanitation practices.

    The WHO has played a key role in responding to the cholera outbreak in Angola, collaborating closely with the Ministry of Health (MINSA), Ministry of Water and Energy and the Provincial Health Office to contain the spread of the disease. ‘‘With a community-based approach, WHO has facilitated the implementation of the National Cholera Response Plan, mobilizing human and material resources to the affected provinces and reinforcing epidemiological monitoring, which is essential for containing the outbreak.’’ says Dr Zabulon Yoti, WHO Representative in Angola.

    In addition, community mobilizers have been trained in effective communication strategies on hygiene, sanitation and early case detection. Thanks to this coordination, rapid responses have enabled suspected cases to be identified, referred to and treated quickly. 

    Celestino Mbambali’s story demonstrates the impact an individual can have on protecting their community, but it also highlights the importance of the coordinated response between local authorities, international organizations and civil society. With collective work, solidarity and awareness, it is possible to save lives and defeat cholera.

    “I’m relieved to know that we have life saver in our neighborhood. When I started having symptoms, I was quickly helped by Mr. Celestino and transferred to the hospital. After two difficult weeks, I was finally able to return home, healthy and grateful for everything they did for me.’’ Fernando Alberto, one of the patients who successfully recovered, says with emotion.

    In the context of this public health emergency, the Ministry of Health, with the support of the WHO, the United Nations Children’s Fund (UNICEF) and the World Bank, carried out a reactive vaccination campaign from 3 to 7 February 2025 to immunize around 930,000 people aged one year and above in the provinces most affected by cholera, namely Luanda, Bengo and Icolo e Bengo. The oral cholera vaccine is being used to compliment other preventive measures including improving access to safe water, addressing sanitation and hygiene gaps.

    MIL OSI Africa

  • MIL-OSI Security: Detroit Man Sentenced To Over Four Years in Federal Prison For Participating In Multi-State Pandemic Unemployment Insurance Fraud Scheme

    Source: Office of United States Attorneys

    DETROIT – A man from Detroit, Michigan was sentenced today for his role in a multi-state, million-dollar unemployment insurance fraud scheme aimed at defrauding the U.S. government and the states of Michigan, Pennsylvania, and Maryland, of funds earmarked for unemployment assistance during the COVID-19 pandemic, announced Acting United States Attorney Julie A. Beck.

    Joining in the announcement were Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Special Agent in Charge Charles Miller, Internal Revenue Service-Criminal Investigation, and Megan Howell, Acting Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

    Tracey Dotson, 49, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence handed down by United States District Judge Matthew F. Leitman.

    According to court records, Dotson and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic. The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.

    Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024. Dotson and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent.   The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Dotson, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included high-end jewelry, designer fashion accessories by Gucci and Louis Vuitton, drugs, at least one vehicle, and at least one firearm.

    “Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time,” said Acting U.S. Attorney Julie Beck. “Our office is steadfast in its commitment to bringing those to justice who used a global health crisis as a means to illegally line their own pockets at the expense of taxpayers. “

    “This sentence underscores the FBI’s commitment to investigating complex financial crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice.”

    “Individuals who commit such blatant unemployment insurance fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation.  “Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic, exposed personal identity information of many, and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of pandemic fraud and identity theft, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”

    “Tracey Dotson and his co-conspirator defrauded multiple state workforce agencies by using stolen identities to obtain unemployment insurance (UI) benefits. As a result, he stole vital taxpayer resources intended for unemployed American workers in dire need of UI benefits. Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit this critical benefit program,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    This case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan. The investigation was conducted jointly by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and Department of Labor, Office of Inspector General.

    MIL Security OSI

  • MIL-OSI Security: Financial TV News Analyst-Turned-Fugitive Agrees to Plead Guilty to Federal Charge for Conning Investors Out of Millions of Dollars

    Source: Office of United States Attorneys

    LOS ANGELES – A former San Gabriel Valley resident – who was a frequent guest on financial television news programs then became a fugitive from justice after being accused of scamming investors – has agreed to plead guilty to defrauding his victims out of at least $2.7 million, the Justice Department announced today.

    James Arthur McDonald Jr., 53, formerly of Arcadia, has agreed to plead guilty to one count of securities fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.

    McDonald has been in federal custody since June 2024, when he was arrested in a residence in Port Orchard, Washington, after being a fugitive since November 2021, when he failed to appear before the United States Securities and Exchange Commission (SEC) to testify after allegations arose that he had defrauded investors. 

    According to his plea agreement, at McDonald’s Washington state hideout, law enforcement found, among other things, a fake Washington, D.C., driver’s license bearing McDonald’s photograph and the name “Brian Thomas.”

    McDonald was the CEO and chief investment officer of two companies headquartered in Los Angeles: Hercules Investments LLC and Index Strategy Advisors Inc. (ISA). He frequently appeared as an analyst on the CNBC financial television news network.

    In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts, according to court documents.

    In early 2021, McDonald solicited millions of dollars’ worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He misappropriated most of those funds in various ways, including spending $174,610 at a Porsche dealership and transferring $109,512 to the landlord of a home McDonald was renting in Arcadia.

    McDonald also defrauded clients of ISA, his other firm, using less than half of the approximately $3.6 million he raised for trading purposes. Instead, McDonald frequently commingled ISA client funds with funds from his personal bank account, which he used to purchase luxury cars and to pay rent on his home, personal credit card charges, and Hercules operating expenses and to make Ponzi-like payments to ISA clients — that is, paying some ISA clients using funds from other clients. 

    In total, McDonald caused losses of between approximately $2,745,892 and approximately $3,025,892, according to his plea agreement.

    The FBI and IRS Criminal Investigation are investigating this matter.

    In September 2022, the SEC filed a civil complaint charging McDonald and Hercules with violations of federal securities law. In April 2024, United States District Judge Percy Anderson found McDonald and Hercules liable and ordered that they pay several million dollars in disgorgement and civil penalties.

    Assistant United States Attorneys Alexander B. Schwab and Nisha Chandran of the Corporate and Securities Fraud Strike Force are prosecuting this case.

    MIL Security OSI

  • MIL-OSI USA: Cornyn Votes to Confirm Howard Lutnick for Commerce Secretary

    US Senate News:

    Source: United States Senator for Texas John Cornyn
    WASHINGTON – U.S. Senator John Cornyn (R-TX) released the following statement after Howard Lutnick was confirmed as Secretary of the U.S. Department of Commerce:
    “I have no doubt that Howard Lutnick has the experience and expertise to lead the Department of Commerce and help enact President Trump’s economic agenda. I was proud to support Howard’s nomination and look forward to working with him to promote economic competitiveness and bolster Texas’ booming economy.”

    MIL OSI USA News

  • MIL-OSI USA: McConnell Proud to Confirm Loeffler as Small Business Administrator

    US Senate News:

    Source: United States Senator for Kentucky Mitch McConnell
    Washington, D.C. – U.S. Senator Mitch McConnell (R-KY) issued the following statement today regarding the confirmation of Kelly Loeffler as U.S. Small Business Administrator:
    “Kelly Loeffler is another excellent addition to the President’s team. My former colleague in the Senate knows firsthand the challenges of owning and operating a business today, particularly the constant headache of regulatory red tape that too often stifles small businesses. I’m confident Senator Loeffler will be a champion for policies that empower our nation’s entrepreneurs and get bureaucrats out of the way.”

    MIL OSI USA News

  • MIL-OSI: “Is mediocrity good enough?” – ZimCal asks Medallion Financial stockholders

    Source: GlobeNewswire (MIL-OSI)

    • 4Q24 Medallion Bank earnings continue disturbing downward trend
    • Consolidated Medallion Financial Corp earnings have not yet been released
    • Due to lower Bank earnings, Medallion Financial may struggle to pay dividends, operating expenses and a possible SEC penalty with existing cash
    • Medallion Financial and Andrew Murstein face a looming SEC settlement
    • Despite predictable down-trending results, executives were paid record compensation in 2023
    • ZimCal believes that Medallion Financial Corp has huge upside with the right governance and leadership
    • ZimCal previously provided MFIN with versions of its “5 Steps to Improvement” plan that anticipated current risks and negative trends and urges management to take decisive, proactive action

    Full analysis with graphs can be accessed here.

    MINNEAPOLIS, Feb. 19, 2025 (GLOBE NEWSWIRE) —

    Medallion Bank (the “Bank”) recently released its 4Q24 earnings. Medallion Financial Corp (“MFIN” or the “Company”) will be releasing consolidated earnings shortly, along with important updates on a possible SEC settlement involving fraud and touting charges against Andrew Murstein, President and Board Member of MFIN, that has cost shareholders an estimated $8 million in legal fees to defend.

    The Bank represents approximately 95%i of MFIN’s consolidated revenues. On almost all metrics, financial performance is down. Frustratingly, MFIN has lagged in areas that ZimCal Asset Management LLC (“ZimCal”, “We”, “Our”) predicted almost 16 months ago.

    ZimCal remains one of MFIN’s largest investors and has been invested for 4 years. Had MFIN and its board listened to us in 2023 and taken proactive steps to mitigate risk, enhance its operations, resolve the SEC complaint and numerous other detailed suggestions ZimCal offered to increase enterprise value, we believe MFIN would be trading at a substantial premium to its current value.  

    Against the backdrop of healthy consumer data, and booming stock and credit markets, we ask MFIN stockholders – are you happy with such glaring underperformance or do you think the Company can do better? Are you satisfied with MFIN’s President being sued by the SEC for alleged fraud and yet earning tens of millions in compensation even as MFIN’s stock is down, and its unadjusted and core returns are at their worst in over 4 yearsii?  

    We will withhold our full analysis until MFIN’s earnings are released, but we note a few key points about the Bank’s earnings – divided into positives and negatives.

    Full analysis with graphs can be accessed here.

    POSITIVES IN 4Q24 MEDALLION BANK EARNINGS

    1. Asset growth is flat
    If this is driven by a reluctance on the Bank’s part to lower underwriting standards simply to increase growth this is positive. Chasing returns by recklessly opening the credit box would be a mistake. If this is driven by constraints on lending because the Bank’s capital ratio of 15.6% is just above the 15% mandatory minimum, then this is problematic. For similar reasons, we support a robust loan origination and sale or securitization strategy to augment interest income, but we think the 1Q25 loan sales are problematic if they are driven by an effort to juice near-term earnings and avoid breaching the Bank’s minimum leverage ratio.

    2. Allowance for credit losses (ACL) has been increased to cover future losses, driven by Recreation ACL
    ACL for Recreation loans specifically increased to 5.00% at 4Q24 from 4.31% at 4Q23. Since 2024, charge-offs have also increased, indicating an effort by the Bank to better recognize the threats of future charge-offs and provision accordingly. We felt that the Bank under-provisioned in the last crisis to artificially boost earnings; we are supportive of their decision to avoid doing so now.

    NEGATIVES IN 4Q24 MEDALLION BANK EARNINGS

    1. Consumer credit quality continues to decline, driven by Recreation
    Recreation loans made up ~65% of total loans at 4Q24. Subprime Recreation was an estimated 35% of Recreation loans or ~$550 million at 4Q24. This borrower demographic will be more stressed by higher for longer rates, inflation and a potentially softening labor market. Despite the Bank’s increased loss allowances, we remain concerned about quarterly consumer charge-offs, which are now at their highest since 2010 and well above the most recent peak in 2019 (Figure 1 below or here). We are concerned that this could get worse. We have beaten our head against the wall for 16 months urging MFIN to proactively mitigate these risks (see letter here from October 2023) but without success.

    2. Net Interest Margin (NIM) continues to be pressured by expensive funding costs
    Quarterly NIM declined to 8.28% at 4Q24 from 8.75% a year ago at 4Q23. This is the lowest quarterly NIM since 2019 when we started tracking this for the Bank. This was mainly driven by higher funding costs and an inability to materially raise loan yields. As predicted, the Bank’s cost of funds (almost entirely CD deposits) continued to trend higher and reached an estimated 3.95% at 4Q24iii. We have noted that a Bank CD portfolio with a 1.8 year weighted average maturity and 36% of CDs maturing in 2024 as of 12/31/23iv, would have rates that would lag benchmark rate increases on the way up (boosting NIM) but would also lag benchmarks on the way down (hurting NIM). We have tracked brokered CD rates through one of the largest platforms since September 2024 and note that while short-term CD (less than 1-year) rates are down, 1, 2 and 5-year CD rates are UP since 09/30/24 and 12/31/24. (See Figure 2 below or here). This shows that NIM pressure will persist.

    3. Earnings have declined YoY despite being boosted by a “noisy” allowance release
    Core net earnings available to common stockholders were $10.3 million in 4Q24 after eliminating $3.9 million in provision reversals and $900,000 in non-core Taxi Medallion recoveries (adjustment to earnings is after taxes). Unadjusted earnings were $14 million. If the Bank were a standalone entity, this would be mediocre but manageable. But when you pile on high holding company expenses and debt service, this is unsustainable. The Bank paid a dividend of $6MM to the holding company in 4Q24 leaving only $4.3MM in core earnings to boost capital levels and fund future loan growth. As we noted in our last earnings commentary, quarterly earnings for MFIN in 2024 are the lowest they have been on an unadjusted and adjusted basis since the last stages of the Taxi Medallion implosion in 2020. Bank ROAA and core ROAA (excluding non-core Taxi Medallion recoveries) we calculated at 2.50% and 1.65% respectively at 4Q24. This core ROAA is dangerously low for a consumer lender and leaves little room for error. Lowered earnings are one of the reasons the Bank’s parent company (MFIN) had to borrow $10 million in 2024 to pay $9.5 million in dividends and share buybacks through 3Q24. The Bank continues to “carry” the weight of its parent, which is reliant on the Bank for upstreamed dividends to fund its expenses and pay its expensive debt.

    We believe that Medallion Bank (and MFIN) have tremendous upside but only with the right Board and leadership. We encourage investors to review www.restoretheshine.com for details on the 2024 proxy contest to replace 2 incumbent directors, where, despite insider ownership that gave MFIN a 44% leadv, ZimCal still earned 22% of stockholder votes with over 1 in 4 stockholders voting against MFIN’s compensation plan. We believe that MFIN’s board of directors (the “Board”) has shown weak governance and is beholden to the Murstein family rather than to all stockholdersvi. We also believe that MFIN’s management team is overpaid and must be improvedvii. We believe that it is ludicrous to pay MFIN’s President $6.5 million or 19% of MFIN’s core earningsviii at FYE23, significantly higher than all but one of MFIN’s self-selected peersix and comparable to the highest paid Wall Street hedge fund managers. Until we see positive changes, we will work to hold MFIN’s Board and management team accountable and believe the potential for the Company is extraordinary.

    Visit www.restoretheshine.com for more information or read our 5 Steps to Improvement.
    ZimCal will issue ongoing press releases with updates and details on its plan to “Restore the Shine” to Medallion Financial Corp.

    About ZimCal Asset Management, LLC
    ZimCal Asset Management is an alternative investment firm focused primarily on niche, illiquid and complex credit investment opportunities.

    ZimCal Asset Management partners with both healthy and distressed borrowers or issuers and provides customized solutions that meet their unique needs and circumstances. Over the last 15 years, the founder of ZimCal Asset Management has developed a specialization investing in FDIC-insured institutions and has partnered with over 120 bank lenders through investments on both sides of the balance sheet.

    ZimCal usually works in collaboration with bank leadership teams if required, but on very rare occasions, must insert itself more forcefully if it believes that leadership is underwhelming and threatens to undermine stakeholder investments. ZimCal prides itself on performing extensive, rigorous financial analysis and research to fully understand the risks of any investment.

    Important Information and Disclaimer
    ZimCal Asset Management, LLC, and its affiliates BIMIZCI Fund, LLC, Warnke Investments LLC and Stephen Hodges (collectively, “ZimCal” or “we”), are, directly or indirectly, owners of securities of Medallion Financial Corp. (the “Company”). ZimCal currently has combined investment exposure of $15,604,000 million to the Company, comprised of $15 million par value of Trust Preferred Securities (backed by the Company’s issued debt), and 76,122 shares of the Company. We are not currently engaged in any solicitation of proxies from stockholders of the Company. ZimCal intends to monitor the performance and corporate governance of the Company, as well as the actions of the Company’s management and board. As ZimCal deems necessary, ZimCal will assert its stockholder rights.

    Except as otherwise set forth herein, the views expressed reflect ZimCal’s opinions and are based on publicly available information with respect to the Company. We recognize that there may be confidential information in the possession of the Company that could lead it or others to disagree with our conclusions. ZimCal reserves the right to change any of its opinions expressed herein at any time as it deems appropriate and disclaims any obligation to notify the market or any other party of any such change, except as required by law. We disclaim any obligation to update the information or opinions contained herein.

    The information herein is being provided merely as information and is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security.

    Some of the information herein may contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that depend on future events are forward-looking. The words “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. There can be no assurance that any forward-looking statements will prove to be accurate and therefore actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. In light of the significant uncertainties inherent in forward-looking statements, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such forward-looking statements will be achieved.


    i Source: MFIN 10K/Qs
    ii See www.restoretheshine.com and MFIN 10K/10Qs
    iii Source: Medallion Bank 4Q24 8K. This is based on the Bank’s annual average CD rate of 3.57% at 4Q24.
    iv Source; MFIN 2024 10K
    v Source: MFIN DEF14A. Insider ownership derived from recent disclosures by MFIN. Insiders owned ~7 million shares and total votes cast were 16 million. We have assumed that all insiders voted and voted against ZimCal. See here for full SEC filing on stockholder meeting voting results.
    vi See www.restoretheshine.com for why we believe the Board is not fulfilling its fiduciary responsibilities to stockholders. Also see Section 1 and Section 2 of the plan for further examples.
    vii See www.restoretheshine.com for why we believe Management, specifically Andrew Murstein, is overpaid relative to bank peers, proxy peers and in terms of absolute performance. Also see Section 1 of the plan for further examples.
    viii See www.restoretheshine.com for comparisons to larger, top performing banks and proxy peers selected by MFIN
    ix See viii above.

    The MIL Network

  • MIL-OSI: Nokia Corporation: Repurchase of own shares on 19.02.2025

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation
    Stock Exchange Release
    19 February 2025 at 22:30 EET

    Nokia Corporation: Repurchase of own shares on 19.02.2025

    Espoo, Finland – On 19 February 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

    Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*
    XHEL 1,396,657 4.74
    CEUX
    BATE
    AQEU
    TQEX
    Total 1,396,657 4.74

    * Rounded to two decimals

    On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 25 November 2024 and end by 31 December 2025 and target to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.

    Total cost of transactions executed on 19 February 2025 was EUR 6,621,272. After the disclosed transactions, Nokia Corporation holds 253,189,663 treasury shares.

    Details of transactions are included as an appendix to this announcement.

    On behalf of Nokia Corporation

    BofA Securities Europe SA

    About Nokia
    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs which is celebrating 100 years of innovation.

    With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia Investor Relations
    Phone: +358 931 580 507
    Email: investor.relations@nokia.com

    Attachment

    The MIL Network

  • MIL-OSI Global: Canada’s cuts to newcomer English language programs puts communities’ well-being at risk

    Source: The Conversation – Canada – By Natalia Balyasnikova, Assistant Professor of Adult Education, York University, Canada

    The impact of of Immigration Refugees and Citizenship Canada’s 2024-25 department plan, released about a year ago, are only now starting to become clear in cities across Canada.

    Whether it’s colleges in Vancouver, Lethbridge or Toronto, many federally funded English-language training programs are experiencing crushing funding cuts resulting in closures, layoffs and fewer classes available.




    Read more:
    To really narrow digital divides, Canada should consistently fund adult education programs


    At risk is the future of Language Instruction for Newcomers to Canada (LINC) — a federally funded program that has been running since 1992.

    Instead of further cutting funding to LINC, the government should expand the programming in recognition that learning a language is about much more than acquiring a discrete set of skills.

    Importance of language programs

    The LINC program has 60 assessment sites across the country and has served roughly 50,000-60,000 learners per year.

    Language learning programs expecting to receive the most significant cuts will be those focused on building employment skills and preparing learners for higher education.

    Rather than the reducing barriers to newcomers’ employment as promised, the changes will make it more difficult for newcomers to access the language learning programs needed for work and life.

    Immigration is central

    The IRCC states “immigration is central to our future” and that its sustainable development strategy remains committed to addressing the barriers to employment and social belonging that newcomers face.

    While not without critique, LINC classes have an important function beyond helping newcomers acquire language skills.

    Through these programs, newcomers build confidence to be able to advocate for themselves, develop a sense of citizenship, contribute to values of equality, respect and rights and access resources essential for life in Canada. All of these contribute to one’s sense of belonging.

    Addressing connection, community

    There is strong evidence that learning in groups reduces isolation, loneliness and feelings of unbelonging, and increases sense of community and connection for immigrants.

    Research shows that learning activities that have goals beyond developing practical language skills such as drama and poetry are opportunities to build a sense of community, empowerment and belonging to facilitate intercultural dialogue.

    They also contribute to the development of learners’ resilience and leadership.




    Read more:
    Theatre shows how the art of inclusion can help build a better Canada


    A vision for sustainability

    Canada is often portrayed as a tolerant and welcoming country, a stronghold of multiculturalism and multilingualism. Canada has made promises to build a nation that is economically, socially and culturally prosperous.

    To make this promise sustainable, it is essential to continue addressing the complex needs of newcomers, especially by ensuring access to inclusive and quality education throughout their lives.

    IRCC’s choice to cut funding is influenced by a short-term economic model that seems to forget that nearly 20 per cent of Canada’s population are new permanent residents.

    These residents should have access to learning offerings and intercultural socialization opportunities. These would ideally include offerings centred on critical conversations, discussions of shared experiences, visions for life in Canada and building allyships between new immigrants and long-time citizens. Such learning, socialization and relationship-building opportunities could be made accessible through LINC.

    Social stratification concerns

    By reducing funding available for English-language classes, the federal government is denying thousands of people their fundamental right to education. The current budget cuts will inevitably contribute to growing social stratification and increase the challenges faced by the already overwhelmed immigration and educational sectors.

    A recent statement by TESL Ontario, the certification body for educators who teach English as another language in Ontario, urges the Canadian government to consider impacts on language teachers who face precarious employment and low pay, a concern shared by unions across the public sector.

    Language learning programs are foundational to ensuring sustainable settlement in Canada. A truly sustainable development strategy would see the continued funding of English-language programs as essential to ensuring the continued economic and societal well-being of all people living in Canada.

    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. Canada’s cuts to newcomer English language programs puts communities’ well-being at risk – https://theconversation.com/canadas-cuts-to-newcomer-english-language-programs-puts-communities-well-being-at-risk-249103

    MIL OSI – Global Reports

  • MIL-OSI: Liberty Northwest Bancorp, Inc. Reports 2024 Fourth Quarter and Full Year Financial Results

    Source: GlobeNewswire (MIL-OSI)

    2024 Fourth Quarter Financial Highlights:

    • Total assets were $186.9 million at year end.
    • Net interest income of $1.00 million for the fourth quarter.
    • Net interest margin of 2.30% for the fourth quarter and 2.36% for the year.
    • Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million a year ago, with non-interest bearing demand deposits representing 25% of total deposits.
    • Net loans were $141.6 million at December 31, 2024, compared to $142.8 million a year ago.
    • Asset quality remains pristine.
    • Tangible book value per share increased to $7.80 at year end, compared to $7.58 a year ago.

    POULSBO, Wash., Feb. 19, 2025 (GLOBE NEWSWIRE) — Liberty Northwest Bancorp, Inc. (OTCQX: LBNW) (the “Company”) and its wholly-owned subsidiary Liberty Bank today announced a net loss of $43 thousand for the fourth quarter ended December 31, 2024. This compared to net income of $25 thousand for the third quarter ended September 30, 2024, and $1 thousand for the fourth quarter ended December 31, 2023. For the twelve months ended December 31, 2024, net income was $3 thousand, compared to $35 thousand the same period in 2023.

    Total assets were $186.9 million as of December 31, 2024, compared to $184.7 million at December 31, 2023. Net loans totaled $141.6 million as of December 31, 2024, a 1% increase compared to $140.0 million at September 30, 2024, and a 1% decrease compared to $142.8 million a year ago. Loan demand was muted during the quarter largely due to the elevated interest rate environment.

    Asset quality remained pristine during the fourth quarter. The allowance for credit losses totaled $1.16 million as of December 31, 2024, and was 0.81% of total loans outstanding. The Company recorded net loan recoveries of $31 thousand during the quarter. The Company has one non-performing loan of $235 thousand as of December 31, 2024.

    Due to strong credit quality metrics and muted loan growth, the Company recorded a $40 thousand reversal to its provision for credit losses in the fourth quarter of 2024. This compared to a $95 thousand reversal to its provision for credit losses in the third quarter of 2024 and a $60 thousand reversal to its provision for credit losses in the fourth quarter of 2023.

    Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million at December 31, 2023, and decreased modestly compared to $146.4 million three months earlier. Non-interest bearing demand accounts represented 25%, interest bearing demand represented 30%, money market and savings accounts comprised 18%, and certificates of deposit made up 27% of the total deposit portfolio at December 31, 2024.

    “The vibrant Pacific Northwest markets that we operate in continue to fuel our deposit base and loan pipeline,” said Rick Darrow, Liberty Northwest Bancorp, Inc. President and Chief Executive Officer. “During the fourth quarter, loan growth moderated, as we remain selective with the loans we are putting on the balance sheet. As we look to 2025, we anticipate an increase in growth opportunities, especially if interest rates continue to stabilize.

    “The challenging interest rate environment continues to impact net interest income growth with higher interest expense on deposits and borrowings, which affected our operating performance for the fourth quarter of 2024,” said Darrow. Net interest income, before the provision for loan losses, was $1.00 million for the fourth quarter of 2024, compared to $1.07 million in the fourth quarter of 2023. For the year, net interest income was $4.11 million, compared to $4.44 million for 2023.

    “While our yields on earning assets remained stable during the quarter, they were more than offset by the increase in cost of funds, resulting in net interest margin compression during the quarter,” said Darrow. The Company’s net interest margin was 2.30% for the fourth quarter of 2024, compared to 2.37% for the preceding quarter, and 2.48% for the fourth quarter of 2023. For the full year 2024, the net interest margin was 2.36%, compared to 2.59% for 2023.

    Total non-interest income increased 6% to $82 thousand for the fourth quarter of 2024, compared to $78 thousand for the fourth quarter a year ago. For the year, non-interest income was $308 thousand, compared to $449 thousand for 2023. The decrease in 2024 compared to the prior year was primarily due to higher referral fee income earned in 2023.

    Total noninterest expense was $1.18 million for the fourth quarter of 2024, a decrease of $43 thousand, or 3%, from the fourth quarter a year ago. Compensation and benefits costs decreased by $55 thousand, or 8%, over the year ago quarter, while occupancy costs decreased by $51 thousand, or 34% from the same quarter a year ago. For the year, total noninterest expense decreased $275 thousand, or 6%, to $4.68 million, over 2023.

    “We remain focused on enhancing revenue generation and driving cost efficiencies to improve our operational effectiveness,” said Darrow. “Our operating performance is expected to continue to improve, as we improve our margin, while keeping operating expenses in line. We are well positioned for continued growth in our core business operations and remain focused on creating value for all of our customers, employees and shareholders.”

    Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.81% at December 31, 2024, substantially above well-capitalized regulatory requirements. The tangible book value per share was $7.80 at year end, compared to $7.58 a year earlier.

    Near the end of the second quarter of 2024, the Company completed the issuance of $1.2 million of Preferred Stock. Under the terms of the transaction, the Preferred Stock will convert to Common Stock within a 2 year time period.

    “We are deploying the proceeds from this offering to further strengthen our capital position and to support continued loan growth in our vibrant Pacific Northwest markets,” said Darrow.

    About Liberty Northwest Bancorp, Inc.
    Liberty Northwest Bancorp, Inc. is the bank holding company for Liberty Bank, a commercial bank chartered in the State of Washington. The Bank began operations June 11, 2009, and operates a full-service branch in Poulsbo, WA. The Bank provides loan and deposit services to predominantly small and middle-sized businesses and individuals in and around Kitsap and King counties. The Bank is subject to regulation by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For more information, please visit www.libertybanknw.com. Liberty Northwest Bancorp, Inc. (OTCQX: LBNW), qualified to trade on the OTCQX® Best Market in June 2022. For information related to the trading of LBNW, please visit www.otcmarkets.com.

    For further discussion, please contact:
    Rick Darrow, Chief Executive Officer | 360-394-4750

    Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Liberty Northwest Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Liberty Northwest Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

    STATEMENTS OF INCOME (Unaudited)                                
    (Dollars in thousands)                                
          Quarter Ended Dec 31, 2024   Quarter Ended Sept 30, 2024   Three Month Change   Quarter Ended Dec 31, 2023   Quarter over Quarter – One Year Change   Year to Date Dec 31, 2024   Year to Date Dec 30, 2023   One Year Change
    Interest Income                                
      Loans   $ 1,932     $ 1,994     -3 %   $ 1,890     2 %   $ 7,807     $ 7,173     9 %
      Interest bearing deposits in banks     142       83     70 %     101     41 %     365       323     13 %
      Securities     108       114     -5 %     140     -23 %     461       483     -5 %
      Total interest income     2,182       2,192     -0 %     2,112     3 %     8,632       7,979     8 %
                                       
    Interest Expense                                
      Deposits     928       903     3 %     656     41 %     3,298       2,141     54 %
      Other Borrowings     252       283     -11 %     384     -34 %     1,226       1,396     -12 %
      Total interest expense     1,179       1,186     -1 %     1,040     13 %     4,524       3,537     28 %
                                       
    Net Interest Income     1,003       1,005     -0 %     1,072     -7 %     4,109       4,442     -8 %
      Provision for Loan Losses     (40 )     (95 )   -58 %     (60 )   -33 %     (265 )     (105 )   152 %
    Net interest income after provision for loan losses     1,043       1,100     -5 %     1,132     -8 %     4,374       4,547     -4 %
                                       
    Non-Interest Income                                
      Service charges on deposit accounts     28       28     -0 %     17     61 %     104       67     55 %
      Other non-interest income     55       46     19 %     61     -10 %     204       382     -47 %
      Total non-interest income     82       74     12 %     78     6 %     308       449     -31 %
                                       
    Non-Interest Expense                                
      Salaries and employee benefits     650       668     -3 %     705     -8 %     2,596       2,854     -9 %
      Occupancy and equipment expenses     100       88     14 %     151     -34 %     429       595     -28 %
      Other operating expenses     429       387     11 %     367     17 %     1,652       1,503     10 %
      Total non-interest expenses     1,180       1,143     3 %     1,223     -3 %     4,677       4,952     -6 %
                                       
    Net Income Before Income Tax     (55 )     31     -275 %     2     -3027 %     4       44     -90 %
    Provision for Income Tax     (12 )     7     -275 %     0     -3027 %     1       9     -90 %
    Net Income     (43 )   $ 25     -275 %   $ 1     -3027 %   $ 3     $ 35     -90 %
                                       
    BALANCE SHEETS (Unaudited)                    
    (Dollars in thousands)                    
          Dec 31, 2024   Sept 30, 2024   Three Month Change   Dec 31, 2023   One Year Change
    Assets                    
      Cash and due from Banks   $ 1,655     $ 2,408     -31 %   $ 1,817     -9 %
      Interest bearing deposits in banks     14,341       11,262     27 %     7,896     82 %
      Securities     20,586       21,225     -3 %     23,034     -11 %
                           
      Loans     142,720       141,206     1 %     143,913     -1 %
      Allowance for loan losses     (1,158 )     (1,167 )   -1 %     (1,150 )   1 %
      Net Loans     141,561       140,038     1 %     142,763     -1 %
                           
      Premises and fixed assets     6,101       6,161     -1 %     6,418     -5 %
      Accrued Interest receivable     681       668     2 %     765     -11 %
      Intangible assets     11       19     -43 %     39     -72 %
      Other assets     1,949       2,262     21 %     1,992     -2 %
                           
      Total Assets   $ 186,884     $ 183,678     2 %   $ 184,724     1 %
                           
                           
    Liabilities and Shareholders’ Equity                    
      Deposits                    
      Demand, non-interest bearing   $ 35,845     $ 39,669     -10 %   $ 42,803     -16 %
      Interest Bearing Demand     44,149       40,764     8 %     23,528     88 %
      Money Market and Savings     26,495       27,419     -3 %     26,667     -1 %
      Certificates of Deposit     39,345       38,507     2 %     49,200     -20 %
      Total Deposits     145,833       146,359     -0 %     142,198     3 %
                           
      Total Borrowing     26,461       22,454     18 %     29,430     -10 %
      Accrued interest payable     173       238     -27 %     335     -48 %
      Other liabilities     286       704     133 %     214     34 %
      Total Liabilities     172,753       169,756     2 %     172,177     0 %
                           
      Shareholders’ Equity                    
      Preferred Stock     1,242       1,242     0 %       ***
      Common Stock     1,656       1,650     0 %     1,650     0 %
      Additional paid in capital     13,149       13,138     0 %     13,108     0 %
      Retained Earnings     (1,490 )     (1,447 )   -3 %     (1,493 )   0 %
      Other Comprehensive Income     (426 )     (661 )   36 %     (718 )   41 %
      Total Shareholders’ Equity     14,131       13,922     1 %     12,547     13 %
      Total Liabilities and Shareholders’ Equity   $ 186,884     $ 183,678     2 %   $ 184,724     1 %
       
            Quarter Ended Dec 31, 2024   Quarter Ended Sept 30, 2024   Quarter Ended Dec 31, 2023   YTD 2024   YTD 2023  
    Financial Ratios                        
      Return on Average Assets     -0.09 %     0.06 %     0.00 %     0.00 %     0.02 %  
      Return on Average Equity     -1.23 %     0.70 %     0.03 %     0.03 %     0.28 %  
      Efficiency Ratio     108.7 %     105.9 %     106.4 %     105.9 %     101.2 %  
      Net Interest Margin     2.30 %     2.37 %     2.48 %     2.36 %     2.59 %  
      Loan to Deposits     97.9 %     96.5 %     101.2 %          
                               
      Tangible Book Value per Share $ 7.80     $ 7.67     $ 7.58            
      Book Value per Share   $ 7.81     $ 7.68     $ 7.60            
      Earnings per Share   $ (0.03 )   $ 0.01     $     $ 0.03     $ 0.02    
                               
      Asset Quality                        
      Net Loan Charge-offs (recoveries) $ (31 )   $ 4     $            
      Nonperforming Loans   $ 235     $ 235     $            
      Nonperforming Assets to Total Assets   0.13 %     0.13 %     0.00 %          
      Allowance for Loan Losses to Total Loans   0.81 %     0.83 %     0.80 %          
      Other Real Estate Owned                          
                               
      CAPITAL (Bank only)                      
      Tier 1 leverage ratio     9.98 %     10.23 %     9.56 %          
      Tier 1 risk-based capital ratio   14.87 %     15.00 %     14.16 %          
      Total risk based capital ratio   15.81 %     15.97 %     15.09 %          
                               

    The MIL Network

  • MIL-Evening Report: The desert among the snow: how Anmatyerr ceremony men came to create ground paintings in Switzerland

    Source: The Conversation (Au and NZ) – By Jason M. Gibson, DECRA Senior Research Fellow, Cultural Heritage and Museum Studies, Deakin University

    Cliffy Tommy working on the _rrpwamper_ (common brushtail possum) ground painting sculpture. Georges Petitjean, CC BY

    A ground painting is known in Anmatyerr as Ahelh Anety-irrem, meaning “broken” or perhaps even “transformed ground”. The name refers to the process of clearing an even surface on the red earth, building a sculpture and then deconstructing it.

    Anmatyerr people live in the desert community of Laramba, 200 kilometres northwest of Alice Springs. Now, the work of Anmatyerr artists has been shown in Switzerland for the first time.

    In December, four men from Laramba travelled to the Canton of Valais, just east of Geneva.

    Anmatyerr men Morris Wako, Martin Hagan, Cliffy Tommy and Michael Tommy with the ground paintings.
    Jason M. Gibson, CC BY

    Elder Michael Tommy, Morris Wako, Cliffy Tommy and Martin Mpetyan/Kemarr Hagan (one of the authors of this piece) were invited to create three ground paintings for the international exhibition Rien de Trop Beau pour les Dieux (Nothing Too Beautiful for The Gods).

    Working alongside artists from Cameroon, Tibet, Cuba and Aotearoa New Zealand, the Anmatyerr group represented a uniquely Australian culture.

    Creating the paintings

    Along with body and artefact designs, ground paintings were an important cultural source for the emergence of contemporary desert art in the early 1970s.

    During that decade, Anmatyerr, Warlpiri, Luritja and Pintupi men began experimenting with representing ceremonial designs and stories using acrylic paint.

    Drawing largely on designs and stories embedded in central Australian religious activities the men developed the style of “dot” painting now known across the world.

    Two of the ground paintings shown in Switzerland were principally made from a native daisy (Chrysocephalum apiculatum), or anteth mpay-mpay in the Anmatyerr language.

    The plant was harvested from Anmatyerr lands, chopped finely and coloured with red or white ochres before being shipped to Switzerland.

    A bunch of cockatoo feathers along with an alkwert (beanwood shield) and an atnartenty (ceremonial pole) made by Anmatyerr artist Wayne Scrutton also made the journey.

    Michael Tommy, a ceremonial expert amongst the Anmatyerr people, oversaw the making of the ceremonial designs.

    Each of the men possessed personal connections to different designs. Martin created the rrpwamper (common brushtail possum) ground sculpture belonging to his mother’s father.

    Martin Hagan and his possum ground painting.
    Jason Gibson., CC BY

    Morris painted the atwerneng (flying ant) and rrwerleng (honey grevillea) Dreamings of his father.

    Michael and Cliffy constructed their father and grandfather’s yerramp (honey-ant) ground painting.

    The works were created in the gallery over three days with artists from other parts of the globe regularly coming by to chat and share ideas.

    As the men worked, they sang the songs for each of the designs. These voices reverberated across the room and brought life to works that were steeped in old traditions but also very much part of the present.

    On opening night, the men painted their bodies with the correct designs and explained how their art stemmed from Anengekerr (Dreaming), Country and family inheritance. The exchange was translated into French for the local audience.

    Recording culture

    In 2023 the Laramba men began recording their ceremonial traditions, recognising these practices were vulnerable in a rapidly changing world.

    One of the writers of this piece, Jason Gibson, has worked closely with the community over the last 15 years on the repatriation of relevant recordings of ceremonies from the Strehlow and other collections. The Strehlow collection is made up of recordings of Aboriginal ceremony, ritual and song from central Australia collected by the anthropologist TGH Strehlow between 1932 and 1972. It is now held at the Strehlow Research Centre in Alice Springs.

    Museum collections like this were made by anthropologists over the last 130 years and hold important information about ceremonial practices, family histories and stories for Country. Having access to this material has enabled the community to think deeply about how art and museum collections might be used to their advantage.

    The men have now decided to build a collection of their own, serving their cultural future.

    Morris Wako, Jason Gibson and Cliffy Tommy with Morris Wako’s painting.
    Arthur Gibson (Kemarr), CC BY

    A part of this strategy has been to reach out to galleries and museums in search of collaborations.

    Through giving and showing, they are striving to establish better relationships and wider recognition.

    Aboriginal art in Europe

    Established in 2018, by collector Bérengère Primat, Fondation Opale is the sole contemporary art centre dedicated to the promotion of Australian Aboriginal art in Europe.

    The building’s architecture and décor showcase Australian Aboriginal themes. An Aboriginal flag flies from the rooftop and sculptures of boomerangs and shields adorn the grounds. This desert culture stands against a contrasting backdrop of alpine snow and ice.

    Fondation Opale in Lens, Switzerland.
    Isabelle dlC/Wikimedia Commons, CC BY

    Though unusual, the setting created a familiar and comforting place from which to work.

    The men were hand-picked because of their expertise in ceremony. Michael Tommy had made acrylic paintings alongside Clifford Possum and Tim Leura, founders of desert acrylic painting, but none of the men had invited or sought fame as painters. Their focus has been on the retention of song and ceremony.

    The knowledge encrypted in the works created by these men in Switzerland is known to only a small group of people in Laramba and nearby communities. The ground paintings are usually only made as a part of local ceremonial events.

    Only on a few other occasions have men from Anmatyerr and Warlpiri men created ground paintings for international audiences, notably at the Asia Society in New York in 1988, and the Magiciens de la Terre (Magicians of the Earth) exhibition in Paris in 1989.

    Magicians of the Earth, curated by Jean-Hubert Martin, was controversial for presenting non-Western artistic practice on an equal footing with the artistic traditions of Western Europe and North America. The show significantly influenced the way contemporary art is understood and presented on a global scale, and remains a touchstone for discussions about cultural representation and inclusion in the art world.

    Nothing Too Beautiful for the Gods was also curated by Martin, and shines a light on the relationship between culturally diverse forms of spirituality and artistic practices. It was the perfect context for the men to demonstrate how their art and religious practices are intertwined. It also showed how traditions rooted in place, can also be part of a contemporary, global conversation.

    The three works will now stay on permanent exhibition at Fondation Opale. Culture practiced and shared is culture sustained.

    Jason M. Gibson receives funding from the Australian Research Council.

    Martin Mpetyan Hagan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. The desert among the snow: how Anmatyerr ceremony men came to create ground paintings in Switzerland – https://theconversation.com/the-desert-among-the-snow-how-anmatyerr-ceremony-men-came-to-create-ground-paintings-in-switzerland-246985

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  • MIL-Evening Report: Collateral damage: how the war on ‘woke banking’ could backfire on New Zealand

    Source: The Conversation (Au and NZ) – By Martien Lubberink, Associate Professor of Accounting and Capital, Te Herenga Waka — Victoria University of Wellington

    Getty Images

    It would be hard to think of an industry less obviously “woke” than banking, but that’s how coalition partner NZ First has characterised certain practices within the finance sector.

    The party’s tortuously titled Financial Markets (Conduct of Institutions) Amendment (Duty to Provide) Amendment Bill – dubbed the “woke banking” bill – takes aim at efforts to build sustainability concepts into investment practices.

    Known as the “environmental, social and governance (ESG) framework”, such policies are designed to guide how a bank manages risks and opportunities beyond basic profit and loss.

    NZ First’s bill seeks to ensure no New Zealand business can be denied banking services unless the decision is grounded in law. Its proponents argue it will prevent ESG standards from perpetuating “woke ideology” in the banking sector, driven by what they describe as “unelected, globalist, climate radicals”.

    Prime Minister Christopher Luxon has supported the bill’s aims, recently calling it “utterly unacceptable” that petrol stations and mines were being denied banking services due to banks’ commitment to climate change goals.

    Coalition partner ACT similarly called for the end of “banking wokery”. And last week the Finance and Expenditure Committee announced an extension of its inquiry into banking competition to include, among other issues, the “debanking of legitimate sectors”.

    Risk management isn’t ‘woke’

    Much of this is largely politically performative, however. A broader international trend has for, some time now, seen financial institutions increasingly aligning their lending practices with ESG criteria.

    In Europe, for example, data from the European Banking Authority show banks have halved their exposures to mining firms since 2020, reflecting that global shift towards sustainability and risk management.

    This is about more than “woke” agendas and is unlikely to reverse, given current global efforts to decarbonise. Encouraging or forcing banks to invest in carbon-emitting industries introduces financial risk. If those assets lose value, it constitutes irresponsible lending.

    While the current US administration may be embracing fossil fuel industries, consumer and investor demand for sustainable policies is still strong. When banks such as the BNZ prepare for an orderly exit from declining industries, they are simply engaging in risk management.

    Banks also manage regulatory risk. While the current government may enact the bill and force banks to invest in carbon-emitting industries, a future government could reverse that policy. This undermines long-term investment strategies.

    Regulatory uncertainty

    There is also a danger New Zealand is perceived internationally as not being serious about business and investment. In particular, the prime minister’s pressure on bank lending policies cuts across his stated commitment to the Paris Agreement on climate change.

    The resulting regulatory uncertainty is counterproductive: it potentially deters international investors at a time when the government aims to attract foreign investment.

    Ultimately, if bank lending policies lead to poor outcomes, it is ordinary New Zealanders who will likely bear the costs through higher interest rates or even bank failures.

    In its eagerness to boost lending, the government is also encroaching on the Reserve Bank’s territory by directing it to prioritise competition, including reviewing risk weightings and capital thresholds (designed to build buffers against failure) for new entrants to the market.

    But history shows that before the 2007-2009 global financial crisis, similar bank-friendly initiatives – often labelled “principles-based” – led to bad debt accumulation and increased economic vulnerability.

    Institutional failure

    The shift towards what we might call populist banking policies is not confined to New Zealand. Globally, there is a declining political interest in financial stability and prudential regulation.

    For example, agreement on the “Basel III” reforms – developed in response to the global financial crisis and aimed at strengthening the regulation, supervision and risk management of banks – will likely be delayed by the Trump administration.

    This will have ripple effects in Europe, Britain and the rest of the world, signalling a softening of global capital requirements. As Erik Thedéen, chair of the Basel Committee on Banking Supervision, described this:

    Shaving off a few basis points of capital will not unlock a wave of new lending, but it will weaken your resilience. More generally, being well capitalised is a competitive advantage for banks and their shareholders. It ensures they can continue to grow and invest in profitable projects across the financial cycle.

    Politicians need to be very careful when interfering with bank supervision policies in general. They risk undermining the independence of crucial institutions, with real consequences.

    Last year’s Nobel Prize for economics went to Daron Acemoglu, Simon Johnson and James A. Robinson for their “studies of how institutions are formed and affect prosperity”. Their warning is that institutional failure can lead to the failure of nations.

    A resilient banking system

    While New Zealand isn’t in such imminent danger, political leaders need to be aware that populist appeals to certain voter segments can lead to policies that undermine the banking system and economic growth, and disproportionately affect the most vulnerable.

    As Stelios Haji-Ioannou, founder of low-cost airline EasyJet, once remarked: “if you think safety is expensive, try an accident”.

    New Zealand needs to focus on policies that promote long-term financial stability, enhance productivity and sustainable economic growth. Globally, there needs to be a recommitment to prudential regulation to ensure the lessons of the global financial crisis are not forgotten.

    Only by doing so can we build a resilient banking system that serves the interests of all, not just a privileged few.

    Martien Lubberink does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Collateral damage: how the war on ‘woke banking’ could backfire on New Zealand – https://theconversation.com/collateral-damage-how-the-war-on-woke-banking-could-backfire-on-new-zealand-249930

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  • MIL-Evening Report: Can you afford a private school? Average fees for Year 12 are at least $15,000

    Source: The Conversation (Au and NZ) – By Emma Rowe, Associate Professor in Education, Deakin University

    Monkey Business Images/ Shutterstock

    This week, updated figures once again showed an increasing number of Australian families are choosing to send their children to private schools.

    Just over 63% of Australian students are enrolled in government schools. Almost 20% are in Catholic schools and almost 17% go to independent schools, according to Australian Bureau of Statistics.

    How much is it costing parents?

    While headlines often focus on the most expensive schools, there is a huge range of private schools operating in Australia.

    In our new analysis, which is not peer-reviewed, we looked at private school fees in New South Wales and Victoria (the two most populous states).




    Read more:
    More Australian families are choosing private schools – we need to understand why


    Fees for Year 12

    We looked only at independent schools. The non-government school sector is made up of Catholic and independent schools, but Catholic private schools typically charge lower fees and this can skew the data on the sector.

    The tuition fees we refer to are based on what is publicly available through each school’s website.

    We collected all available data for Year 12 tuition fees in every independent school in NSW and Victoria in 2021 and 2024. We chose to focus on Year 12, as this is typically the most expensive year at school.

    • In NSW, we found fee information for 369 schools (77% of independent schools).

    • In Victoria we found fee information for 138 schools (92% of independent schools).

    Private school fees don’t necessarily include other expenses such as music or sport.
    DGLimages/Shutterstock



    Read more:
    Are public schools really ‘free’? Families can pay hundreds of dollars in voluntary fees


    What is the average tuition fee?

    In 2024, the average tuition fee for a Year 12 student in NSW was A$15,674 and in Victoria it was $20,923.

    This is in keeping with other analyses showing Victoria is the most expensive state for school fees in Australia.

    These figures suggest while many schools are far from the headlines of “$50,000 fees”, many families are still paying substantial amounts for a private education – particularly if they have more than one child.

    However, there were significant variations in tuition fees between schools. In NSW, 12% of schools in our sample charged under $5,000 per year per student. In Victoria, 9% charged less than $5,000.

    One alternative school in NSW charged just $100 per student per year. This is less than parents typically pay out of their own pocket at the average public school.

    This shows us there some cheaper options available, depending on where families live although they are certainly not the majority.

    At the other end of the sample, The Scots College in NSW and Geelong Grammar School in Victoria charged the highest tuition fees in their respective states for 2024. Geelong Grammar charged $49,720 for Year 12; Scots charged $46,920.



    There are other costs

    While we only looked at tuition fees, families might also have to pay levies for infrastructure or technology.

    There are also extra charges for activities such as camps, excursions and incursions, as well as fees for uniforms, school buses, and special subjects such as music and sport.

    For the majority of independent schools, parents are asked to pay to enrol or go on the waiting list. The average application fee in Victoria was $156 and in NSW was $197. These fees widely differed between schools, ranging from zero to $650.

    How much are fees growing?

    Fees keep climbing each year, and media reports tell us some school fees have already increased for 2025.

    Our analysis found in Victoria, tuition fees in independent schools increased by an average of 15% from 2021 to 2024 – roughly 3.75% each year. In NSW, fees increased by 13% from 2021 to 2024, or about 3.25% per year.

    In media coverage, individual schools have blamed fee increases on inflation, “operational costs”, rising staff costs, and a drop in federal funding.

    Will fees keep rising?

    In some OECD countries, if private schools receive government funding, there are conditions placed on what they can charge for tuition.

    This is not the case in Australia, where the system is unregulated and uncapped.

    Unless this policy approach changes, we can expect private schools to keep increasing fees, as long as there are families willing and able to pay them.

    Emma Rowe receives funding from the Australian Research Council.

    Diana Langmead does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Can you afford a private school? Average fees for Year 12 are at least $15,000 – https://theconversation.com/can-you-afford-a-private-school-average-fees-for-year-12-are-at-least-15-000-248769

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  • MIL-Evening Report: Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution

    Source: The Conversation (Au and NZ) – By Robert Hales, Director, Centre for Sustainable Enterprise, Griffith University

    Roman Samborskyi/Shutterstock

    The goal of science is to uncover truths and create new knowledge. But this is not always welcome. Increasingly, scientific findings are being attacked or downplayed. And scientists themselves face intimidation or harassment.

    In our global study of more than 2,000 scientists across six areas of science, two-fifths (41%) of respondents had, as a result of their work, been harassed or intimidated at least once over a five-year period.

    Intimidation efforts included online abuse, physical threats, and threats to budgets or employment. Harassment, while personal, could be meted out by superiors, colleagues or outsiders. Some scientists felt their leaders had thrown them under the bus to protect the institution’s reputation.

    Who’s doing the intimidation? Strikingly, a majority of cases of intimidation and harassment actually came from inside the institution for most fields. That is, it was perpetrated by senior colleagues or managers. But for climate scientists, most intimidation efforts came from outside.

    Intimidation of scientists doesn’t happen in a vacuum. In recent years, there has been a rise in populist leaders who pour scorn on “elites” and evidence. Scientific issues are increasingly politicised. Disinformation is rampant. This atmosphere adds to the pressure faced by scientists, especially those working in politically sensitive areas such as climate science or COVID.

    Harassment and intimidation can silence or isolate scientists.
    Hayk_Shalunts/Shutterstock

    What did we find?

    We used an online database of scientists to find and contact experts publishing in six fields: climate science, medical health, humanities and social science, food and plant science, astronomy, and other STEM areas.

    More than 2,000 responded to our survey on whether they had experienced various types of intimidation or harassment. We asked respondents for more detail on the perpetrators, what triggered the incident, and what effect it had on them.

    Many respondents had a clear view as to what the intimidation or harassment was meant to do. The motivations of perpetrators varied greatly. But the most common reasons were to damage their reputation, to stop them from publishing certain types of research, or to “put me in my place”.

    Specific fields of science were more prone to harassment and intimidation – in particular climate science, and humanities and social science.

    Among those scientists who had been intimidated, climate scientists reported online abuse three times more often than astronomers. Climate science is politically charged, because climate change is clearly linked to pollution from some of the world’s largest industries – oil, gas and coal. Astronomy is not. Half of the climate scientist respondents experiencing intimidation saw the bad behaviour as a way to discourage them from undertaking specific research and speaking about it.

    Researchers from humanities and social sciences faced similar levels of online abuse to climate scientists.

    When it came to personal harassment, there was a clear gender dimension. Among those who reported experiencing harassment, female scientists were more than four times more likely to report “unwelcome or inappropriate behaviour of a sexual nature” than their male counterparts. Women were affected almost twice as much as men by non-sexual forms of personal harassment.

    Our findings follow earlier research finding similar rates of intimidation. For instance, a 2021 survey of 321 scientists working on COVID-19 found 15% had received death threats and 22% received threats of sexual violence.

    Intimidation and harassment are damaging

    The consequences of intimidation are profound and far-reaching. Many scientists told us the experience had caused lasting damage, whether to wellbeing, career prospects or research activities.

    More than 40% of those affected said their career prospects had worsened following incidents of harassment. Just over a third (34%) reported a decline in their desire to work in science. Scientists who experienced intimidation often cut back their collaboration with colleagues (35%), leaving them more isolated.

    Many of our respondents described flow-on effects such as decreased access to funding (35% of respondents) and less public communication from their institution about their work (23%).

    Scientists targeted with multiple types of harassment reported very damaging effects, from difficulty finding their next job to poor mental health.

    Intimidation slows progress

    Intimidation and harassment have a chilling effect on science. This, in turn, could hinder progress on crucial issues such as climate change, public health and technological advancements.

    The disproportionate impact on women and researchers in politically sensitive fields threatens to undermine diversity and inclusivity in science.

    Without targeted interventions, women in science may continue to suffer disproportionate levels of harassment and intimidation. This will have long-term implications for gender diversity in scientific leadership and the direction of research in various fields.

    In the United States, the Trump administration’s withdrawals from the Paris climate agreement and the World Health Organization are likely to further embolden anti-science movements. Many American scientific institutions are engaged in anticipatory obedience of the Trump administration’s demands that diversity and anti-discrimination programs be abolished, or climate change stop being mentioned. Many even go beyond what is explicitly sought.

    Female scientists are targeted in different ways.
    PeopleImages.com – Yuri A/Shutterstock

    What can be done?

    Science and academia is often seen as a bastion of free inquiry and open discussion. One of our most surprising findings was how common intimidation was within scientific institutions.

    The key to beating intimidation is organisational support and clear strategies, not obedience. These include:

    • genuine commitment to institutional policies protecting scientists from both internal and external intimidation

    • formal, well-resourced support systems for researchers facing harassment or pressure (not the HR office)

    • programs to increase public understanding of the scientific process to build trust and resilience to misinformation

    • boosting international collaboration between scientists and policymakers to ensure resilience against country-specific efforts to undermine science

    • educating the public on the importance of scientific independence and of fostering respectful dialogue around contentious topics.

    As populist movements gain traction in many countries, scientists working on controversial issues will face heightened scrutiny – and potentially more intimidation.

    Climate science is likely to remain a particularly contested field. As the damage wrought by climate change becomes more and more apparent, it will get even more contentious.

    Over the last few centuries, science has produced breakthroughs in many areas. But the integrity of science is not guaranteed. Harassment and intimidation from both inside and outside institutions has a very real effect on scientists.

    The future of evidence-based decision-making and ability to tackle global challenges depends on fostering an environment where scientists can work free from fear and undue pressure.

    Robert Hale receives funding from the Australian Research Council.

    David Peetz undertook research over many years with occasional financial support from governments from both sides of politics, employers and unions. He has been and is involved in several Australian Research Council-funded projects, including this one.

    Ian Lowe was president of the Australian Conservation Foundation from 2004 to 2014.

    Carolyn Troup and Georgina Murray 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. Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution – https://theconversation.com/two-in-five-scientists-report-harassment-and-intimidation-often-the-perpetrators-are-inside-the-institution-248013

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  • MIL-Evening Report: More people are asking generative AI questions about their health. But the wrong answer can be risky

    Source: The Conversation (Au and NZ) – By Julie Ayre, Post Doctoral Research Fellow, Sydney Health Literacy Lab, University of Sydney

    Shvets Production/Pexels

    More people are turning to generative artificial intelligence (AI) to help them in their daily and professional lives. ChatGPT is one of the most well-known and widely available generative AI tools. It gives tailored, plausible answers to any question for free.

    There is so much potential for generative AI tools to help people learn about their health. But the answers are not always correct. Relying solely on ChatGPT for health advice can be risky and cause unnecessary concern.

    Generative AI is still a relatively new technology, and is constantly changing. Our new study provides the first Australian data about who is using ChatGPT to answer health questions, for what purposes.

    The results can help tell people how to use this new technology for their health, and the new skills needed to use it safely – in other words, to build “AI health literacy”.

    Who uses ChatGPT for health? What do they ask?

    In June 2024 we asked a nationally representative sample of more than 2,000 Australians if they had used ChatGPT to answer health questions.

    One in ten (9.9%) had asked ChatGPT a health question in the first half of 2024.

    On average they reported that they “somewhat” trusted ChatGPT (3.1 out of 5).

    We also found the proportion of people using ChatGPT for health was higher for people who had low health literacy, were born in a non-English speaking country, or spoke another language at home.

    This suggests ChatGPT may be supporting people who find it hard to engage with traditional forms of health information in Australia.

    One in ten Australians asked ChatGPT a health question in the first half of last year.
    Kampus Productions/Pexels

    The most common questions that people asked ChatGPT related to:

    • learning about a health condition (48%)
    • finding out what symptoms mean (37%)
    • asking about actions (36%)
    • or understanding medical terms (35%).

    More than half (61%) had asked at least one question that would usually require clinical advice. We classified these questions as “riskier”. Asking ChatGPT what your symptoms mean can give you a rough idea, but cannot substitute clinical advice.

    People who were born in a non-English speaking country or who spoke another language at home were more likely to ask these types of questions.

    Why does this matter?

    The number of people using generative AI for health information is likely to grow. In our study, 39% of people who had not yet used ChatGPT for health would consider doing so in the next six months.

    The overall number of people using generative AI tools for health information is even higher if we consider other tools such as Google Gemini, Microsoft Copilot, and Meta AI.

    Notably, in our study we saw that people from culturally and linguistically diverse communities may be more likely to use ChatGPT for health information.

    If they were asking ChatGPT to translate health information, this adds another layer of complexity. Generative AI tools are generally less accurate in other languages.

    We need investment in services (whether human or machine) to ensure speaking another language is not a barrier to high quality health information.

    What does ‘AI health literacy’ look like?

    Generative AI is here to stay, presenting both opportunities and risks to people who use it for health information.

    On the one hand, this technology appeals to people who already face significant barriers accessing health care and health information. One of its key benefits is its ability to instantly provide health information that is easy to understand.

    A recent review of studies showed generative AI tools are increasingly capable of answering general health questions using plain language, although they were less accurate for complex health topics.

    This has clear benefits as most health information is written at a level that is too complex for the general population, including during the pandemic.

    On the other hand, people are turning to general-purpose AI tools for health advice. This is riskier for questions that require clinical judgment and a broader understanding of the patient.

    There have already been case studies showing the dangers of using general purpose AI tools to decide whether to go to hospital or not.

    Where else can you go for this information?

    We need to help people think carefully about the kinds of questions they’re asking AI tools, and connect them with appropriate services that can answer these riskier questions.

    Organisations such as HealthDirect provide a national free helpline where you can speak with a registered nurse about whether to go to hospital or see a doctor. HealthDirect also provides an online SymptomChecker tool to help you figure out your next steps.

    While many Australian health agencies are developing AI policies, most are focused on how health services and staff engage with this technology.

    We urgently need to equip our community with AI health literacy skills. This need will grow as more people use AI tools for health, and it will also change as the AI tools evolve.

    Julie Ayre receives funding from the National Health and Medical Research Council (APP2017278). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sublicensed to Health Literacy Solutions PTY Ltd to enable wider public use. Julie Ayre (study author) is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Kirsten McCaffery receives funding from the National Health and Medical Research Council (APP2016719). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sub-licensed to Health Literacy Solutions PTY Ltd to enable wider public use. Kirsten McCaffery is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Erin Cvejic does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. More people are asking generative AI questions about their health. But the wrong answer can be risky – https://theconversation.com/more-people-are-asking-generative-ai-questions-about-their-health-but-the-wrong-answer-can-be-risky-249383

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  • MIL-Evening Report: The prime minister earns $607,000 a year. Why does his top public servant earn more than $1 million?

    Source: The Conversation (Au and NZ) – By Chris Wallace, Professor, School of Politics Economics & Society, Faculty of Business Government & Law, University of Canberra

    Tasmanian Senator Jacqui Lambie represents the lowest-income Australians, with median weekly earnings of $1,208 a week. In the Australian Capital Territory, where the nation’s highest median weekly earners live, including the brains trust of the Australian Public Service, it’s $1,688 a week – 40% higher.

    As a federal politician, Lambie shuttles between these two starkly different earnings worlds and is not happy about the disparity.

    Of course, Lambie herself is on a reasonable wicket. Parliamentarians’ base salaries are $233,660 a year, according to an Instagram post she made this month drawing attention to the issue.

    At a time of considerable financial stress for Australians hit by the combination of inflation, high interest rates and housing shortages, Lambie struck a nerve with her post, which listed a range of public roles drawing big six figure-plus annual salaries.

    In doing so, Lambie underlined the far higher salaries paid to senior public servants compared to the ministers to whom they’re responsible.

    Department of Prime Minister and Cabinet Secretary Glyn Davis earns $1,011,410 a year, 66% more than the man he serves, Prime Minister Anthony Albanese, who earns $607,516.

    Treasury Secretary Steven Kennedy’s salary is more than double that of Treasurer Jim Chalmers, who is paid $438,112. Another three departmental secretaries each earn $960,840.

    Lambie’s Instagram post drew hundreds of comments including:

    How does a public servant earn more than the prime minister? That’s wrong!!

    Politicians get flak about their salaries from belligerent constituents, but also keenly feel the injustice of earning far less than senior public servants.

    Higher pay for higher risk

    The salaries of both politicians and public servants have long and specific histories. Without an income, only the rich could afford to be politicians, so publicly paid allowances and salaries have historically been an important equity and inclusion measure. They remain so today.

    The original framers of the public service component of our Westminster system of government believed that to prevent conflicts of interest that drive corruption, the bureaucracy ought to be staffed by “permanent officers” with job security. In exchange for what, barring wrongdoing, was going to be a lifetime career, public service pay was historically adequate but not extravagant.

    This nexus was broken when, in exchange for higher pay, the Keating government introduced five-year contracts for departmental secretaries in March 1994. Three departmental secretaries refused contracts and continued as “permanent officers”. The rest took the money and the increased employment risk that went with it.

    Two years later, the Keating government lost office and incoming Prime Minister John Howard summarily fired nearly a third of departmental secretaries, fatally eroding the “frank and fearless” tradition of public service advice underpinned by security of employment.

    Compromised advice

    Contract employment for secretaries, who effectively can now be fired at will, not only created pressure for public servants to tell ministers what they wanted to hear, but also untethered their salaries from historical norms. Higher pay reflected that insecurity. The flow-on effect meant other salaries in the senior executive service also floated upwards.

    Contracts for secretaries have also been central to the revolving door that’s developed between the top of the public service and large consulting firms, creating conflicts of interest unknown in the traditional Westminster public service.

    The big four consulting firms are attractive alternative employers for highly paid and insecure departmental secretaries.

    Little wonder, then, that a quasi-privatisation of public service advice through consultancy contracts to those firms occurred, at vast expense to taxpayers – something Finance Minister Katy Gallagher has made strong efforts to reverse.

    Lambie’s push for answers

    Lambie has introduced the Remuneration Tribunal Amendment (There for the Public Service, Not Profit) Bill 2025 to cap senior APS pay at $430,000. It’s a bid to address remuneration which has raced far beyond ministerial salaries, and well beyond reasonable public expectations.

    The Lambie bill has been referred to a Senate committee, which presents an opportunity to evolve debate on the deeper reasons for what has gone awry in the public service and to devise a response that gets to the root of the problem.

    The precarity of contract employment for departmental secretaries, which is used to justify high salaries, is both unnecessary and harmful to the quality of public policy and administration in Australia.

    The intrinsic interest and challenge of working for the nation and the betterment of its citizens has always paid well in terms of a “psychic wage” on top of senior public servants’ actual salaries. If the complaint is that an executive could make much more in the private sector, they’re probably not the right person to work in the public service anyway.

    One reply to Lambie’s Insta post summed up the situation:

    It’s the pollies that made this mess.

    Politicians are the ones who are going to have to clean it up.

    It is neither likely nor plausible that highly paid public service leaders will cut their own salaries in return for an end to the five year contract system for secretaries.

    But that is what a return to good public service governance – and to frank and fearless advice in the national interest – now requires.

    Chris Wallace has received funding from the Australian Research Council.

    ref. The prime minister earns $607,000 a year. Why does his top public servant earn more than $1 million? – https://theconversation.com/the-prime-minister-earns-607-000-a-year-why-does-his-top-public-servant-earn-more-than-1-million-250045

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it

    Source: The Conversation (Au and NZ) – By David Rowe, Emeritus Professor of Cultural Research, Institute for Culture and Society, Western Sydney University

    Lukas Coch/AAP, Shutterstock, X.com, The Conversation

    As the next federal election came into view before the summer break, concern increased that Labor wouldn’t be honouring its commitment to introduce new restrictions on online (especially sport) gambling advertising during the current parliamentary sitting.

    Those fears were well-founded, despite pressure from many sides and broad bipartisan political support.

    The Greens made a last-ditch attempt to cooperate with the government to pass some reforms in the February 2025 sitting, but were rebuffed.

    Instead, Communications Minister Michelle Rowland blamed the delay on the complexity of advertising reform and the need to continue consultation.

    This is despite a House of Representatives inquiry into the harmful impacts of online gambling, led by the late Labor MP Peta Murphy, concluding in June 2023.

    In the meantime, much less well-researched but wider-ranging legislation banning children under 16 from using social media was introduced and passed in just eight days in November 2024.

    There are both deep historical and immediate political reasons why this legislation has been bogged down.

    A nation of sporting gamblers

    Professional sport in Australia has an inglorious history of promoting unhealthy goods and services, including cigarettes, sugary drinks, fast food, alcohol and gambling.

    Television and, later, online advertisements have been particularly effective vehicles for connecting sport gambling with potential consumers.

    This has prompted widespread objections to the health and social consequences and intrusiveness of gambling advertising.

    There is convincing evidence that Australia’s world-leading per capita expenditure on gambling and the integral role of sport gambling ads cause harm to a considerable number of people, families and communities.

    Such harm includes negative effects on relationships, health, psychological wellbeing, finances, work and study.

    The gamblification of sport

    Although sport comes third among the main areas of gambling in Australia, it is by far the most prominent, especially in homes.




    Read more:
    Pokies? Lotto? Sports betting? Which forms of problem gambling affect Australians the most?


    The so-called gamblification of sport, accelerated by digitisation, normalises the concept of betting odds among children and young people.

    Sport and media’s enthusiasm for gambling money has provoked strong pushback over its negative social consequences, with mounting public pressure for greater controls on gambling advertising.

    A recent poll found about 72% of those surveyed wanted to ban online gambling ads, while another of AFL fans reported 76% supported television and radio ad bans.

    The response of and to the Murphy Report

    The House of Representatives Standing Committee on Social Policy and Legal Affairs was charged with investigating online gambling and its impacts.

    It made 31 recommendations, with rare cross-party support, in its “you win some, you lose more” report (which was not only about sport).

    Contrary to most public debate and media reporting, it did not formally recommend a blanket ban on all gambling advertising. Its terms of reference only covered online gambling.

    But Murphy’s foreword – calling for a “phased, comprehensive ban on all gambling advertising on all media; broadcast and online, that leaves no room for circumvention” – caught the most attention.

    The main recommendation was for a three-year, four-phase ban on all forms of online gambling advertising. Dedicated racing channels and programming were exempted and small community radio broadcasters given extra time to comply.

    After further consultation lasting almost 18 months, it’s clear this calibrated proposal is not favoured by the government.

    Journalists were backgrounded about a watered down law capping ads for gambling at two per hour per TV channel before 10pm, and banning them for an hour either side of a live sport event. A blanket ban would apply only to betting ads on social media and other digital platforms.

    Yet even these more modest reforms did not proceed as anticipated.

    The reason, it has been widely reported, was heavy lobbying by the sport, media and gambling industries.

    High-stakes horse trading

    The privileged access to government gained by these sectional interests has had a powerful impact on gambling legislation.

    The Coalition of Major Professional and Participation Sports has continually resisted tightening regulations on sport sponsorship and gambling ads.

    It claims their reduction or loss would damage the financial viability of its members and their support for grassroots sport.

    However, Australia’s major sports leagues derive significant gambling revenue from direct sources (sponsorship, product fees) and indirectly from the value of media rights.

    The AFL and NRL generated cumulative revenues of $1.06 billion and $701 million respectively in 2023.

    So while sport leagues would have less capacity to monetise their media rights if gambling ads were reduced, it would neither threaten professional sport in general nor seriously jeopardise funding of junior participation.

    Follow the money

    An Australian Communications and Media Authority report discovered capital city free-to-air television featured 1,381 gambling spots per day between May 2022 and April 2023.

    Gambling companies spent $162 million on free-to-air television advertising during this period, not including further investment on subscription platforms.

    As free-to-air commercial TV is already losing advertising income to digital media platforms, restrictions on this lucrative advertiser category would not be as easily absorbed today as the tobacco advertising bans in the 1970s.

    This is why sports and their media and betting partners are fighting so hard against the legislation.

    And all this capital flowing to and through sport, gambling, and media has created the potential to inflict political harm on gambling reforming governments.

    Negotiations behind closed doors can easily break out into public campaigns, akin to the infamous “axe the (carbon) tax” agitation, if powerful organisations are not satisfied.

    Gambling and the young voter

    Sport gambling ads in Australia have especially targeted young men in a jocular larrikin style. But young women are now also being induced to gamble in greater numbers.




    Read more:
    9 out of 10 Australian sports bettors are men. Here’s why that might change


    Those who want curbs on sport gambling advertisements have been cast by some as “wowsers” and “puritans”.

    State intervention in the sport-media-gambling nexus may provoke a backlash that working-class men are under attack for engaging in their favourite pastimes.

    Like the latest reforms to sport TV anti-siphoning laws, new policies are the product of high-stakes horse trading between nervous governments and pressure groups with manifestly variable degrees of influence.

    As in the gambling world, evidence-based policy can confront very uneven odds.

    David Rowe has received funding from the Australian Research Council to support research relating to this article: Struggling for Possession: The Control and Use of Online Media Sport (with Brett Hutchins, DP0877777); ‘A Nation of “Good Sports”? Cultural Citizenship and Sport in Contemporary Australia’ (DP130104502), and ‘Australian Cultural Fields: National and Transnational Dynamics’ (with Tony Bennett et al, DP140101970).

    Hunter Fujak does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it – https://theconversation.com/will-the-governments-online-gambling-advertising-legislation-ever-eventuate-dont-bet-on-it-238084

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: #StopRansomware: Ghost (Cring) Ransomware

    News In Brief – Source: US Computer Emergency Readiness Team

    Summary

    Note: This joint Cybersecurity Advisory is part of an ongoing #StopRansomware effort to publish advisories for network defenders that detail various ransomware variants and ransomware threat actors. These #StopRansomware advisories include recently and historically observed tactics, techniques, and procedures (TTPs) and indicators of compromise (IOCs) to help organizations protect against ransomware. Visit stopransomware.gov to see all #StopRansomware advisories and to learn more about other ransomware threats and no-cost resources.

    The Federal Bureau of Investigation (FBI), Cybersecurity and Infrastructure Security Agency (CISA), and the Multi-State Information Sharing and Analysis Center (MS-ISAC) are releasing this joint advisory to disseminate known Ghost (Cring)—(“Ghost”)—ransomware IOCs and TTPs identified through FBI investigation as recently as January 2025.

    Beginning early 2021, Ghost actors began attacking victims whose internet facing services ran outdated versions of software and firmware. This indiscriminate targeting of networks containing vulnerabilities has led to the compromise of organizations across more than 70 countries, including organizations in China. Ghost actors, located in China, conduct these widespread attacks for financial gain. Affected victims include critical infrastructure, schools and universities, healthcare, government networks, religious institutions, technology and manufacturing companies, and numerous small- and medium-sized businesses.

    Ghost actors rotate their ransomware executable payloads, switch file extensions for encrypted files, modify ransom note text, and use numerous ransom email addresses, which has led to variable attribution of this group over time. Names associated with this group include Ghost, Cring, Crypt3r, Phantom, Strike, Hello, Wickrme, HsHarada, and Rapture. Samples of ransomware files Ghost used during attacks are: Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe.

    Ghost actors use publicly available code to exploit Common Vulnerabilities and Exposures (CVEs) and gain access to internet facing servers. Ghost actors exploit well known vulnerabilities and target networks where available patches have not been applied.

    The FBI, CISA, and MS-ISAC encourage organizations to implement the recommendations in the Mitigations section of this advisory to reduce the likelihood and impact of Ghost ransomware incidents.

    Download the PDF version of this report:

    For a downloadable copy of IOCs, see:

    Technical Details

    Note: This advisory uses the MITRE ATT&CK® Matrix for Enterprise framework, version 16.1. See the MITRE ATT&CK Tactics and Techniques section of this advisory for a table of the threat actors’ activity mapped to MITRE ATT&CK tactics and techniques.

    Initial Access

    The FBI has observed Ghost actors obtaining initial access to networks by exploiting public facing applications that are associated with multiple CVEs [T1190]. Their methodology includes leveraging vulnerabilities in Fortinet FortiOS appliances (CVE-2018-13379), servers running Adobe ColdFusion (CVE-2010-2861 and CVE-2009-3960), Microsoft SharePoint (CVE-2019-0604), and Microsoft Exchange (CVE-2021-34473, CVE-2021-34523, and CVE-2021-31207— commonly referred to as the ProxyShell attack chain).

    Execution

    Ghost actors have been observed uploading a web shell [T1505.003] to a compromised server and leveraging Windows Command Prompt [T1059.003] and/or PowerShell [T1059.001] to download and execute Cobalt Strike Beacon malware [T1105] that is then implanted on victim systems. Despite Ghost actors’ malicious implementation, Cobalt Strike is a commercially available adversary simulation tool often used for the purposes of testing an organization’s security controls.

    Persistence

    Persistence is not a major focus for Ghost actors, as they typically only spend a few days on victim networks. In multiple instances, they have been observed proceeding from initial compromise to the deployment of ransomware within the same day. However, Ghost actors sporadically create new local [T1136.001] and domain accounts [T1136.002] and change passwords for existing accounts [T1098]. In 2024, Ghost actors were observed deploying web shells [T1505.003] on victim web servers.

    Privilege Escalation

    Ghost actors often rely on built in Cobalt Strike functions to steal process tokens running under the SYSTEM user context to impersonate the SYSTEM user, often for the purpose of running Beacon a second time with elevated privileges [T1134.001].

    Ghost actors have been observed using multiple open-source tools in an attempt at privilege escalation through exploitation [T1068] such as “SharpZeroLogon,” “SharpGPPPass,” “BadPotato,” and “GodPotato.” These privilege escalation tools would not generally be used by individuals with legitimate access and credentials. 

    See Table 1 for a descriptive listing of tools.

    Credential Access

    Ghost actors use the built in Cobalt Strike function “hashdump” or Mimikatz [T1003] to collect passwords and/or password hashes to aid them with unauthorized logins and privilege escalation or to pivot to other victim devices.

    Defense Evasion

    Ghost actors used their access through Cobalt Strike to display a list of running processes [T1057] to determine which antivirus software [T1518.001] is running so that it can be disabled [T1562.001]. Ghost frequently runs a command to disable Windows Defender on network connected devices. Options used in this command are: Set-MpPreference -DisableRealtimeMonitoring 1 -DisableIntrusionPreventionSystem 1 -DisableBehaviorMonitoring 1 -DisableScriptScanning 1 -DisableIOAVProtection 1 -EnableControlledFolderAccess Disabled -MAPSReporting Disabled -SubmitSamplesConsent NeverSend.

    Discovery

    Ghost actors have been observed using other built-in Cobalt Strike commands for domain account discovery [T1087.002], open-source tools such as “SharpShares” for network share discovery [T1135], and “Ladon 911” and “SharpNBTScan” for remote systems discovery [T1018]. Network administrators would be unlikely to use these tools for network share or remote systems discovery.

    Lateral Movement

    Ghost actors used elevated access and Windows Management Instrumentation Command-Line (WMIC) [T1047] to run PowerShell commands on additional systems on the victim network— often for the purpose of initiating additional Cobalt Strike Beacon infections. The associated encoded string is a base 64 PowerShell command that always begins with: powershell -nop -w hidden -encodedcommand JABzAD0ATgBlAHcALQBPAGIAagBlAGMAdAAgAEkATwAuAE0AZQBtAG8AcgB5AFMAdAByAGUAYQBtACgALABbAEMAbwBuAHYAZQByAHQAXQA6ADoARgByAG8AbQBCAGEAcwBlADYANABTAHQAcgBpAG4AZwAoACIA… [T1132.001][T1564.003].

    This string decodes to “$s=New-Object IO.MemoryStream(,[Convert]::FromBase64String(“” and is involved with the execution of Cobalt Strike in memory on the target machine.

    In cases where lateral movement attempts are unsuccessful, Ghost actors have been observed abandoning an attack on a victim.

    Exfiltration

    Ghost ransom notes often claim exfiltrated data will be sold if a ransom is not paid. However, Ghost actors do not frequently exfiltrate a significant amount of information or files, such as intellectual property or personally identifiable information (PII), that would cause significant harm to victims if leaked. The FBI has observed limited downloading of data to Cobalt Strike Team Servers [T1041]. Victims and other trusted third parties have reported limited uses of Mega.nz [T1567.002] and installed web shells for similar limited data exfiltration. Note: The typical data exfiltration is less than hundreds of gigabytes of data.

    Command and Control

    Ghost actors rely heavily on Cobalt Strike Beacon malware and Cobalt Strike Team Servers for command and control (C2) operations, which function using hypertext transfer protocol (HTTP) and hypertext transfer protocol secure (HTTPS) [T1071.001]. Ghost rarely registers domains associated with their C2 servers. Instead, connections made to a uniform resource identifier (URI) of a C2 server, for the purpose of downloading and executing Beacon malware, directly reference the C2 server’s IP address. For example, http://xxx.xxx.xxx.xxx:80/Google.com where xxx.xxx.xxx.xxx represents the C2 server’s IP address.

    For email communication with victims, Ghost actors use legitimate email services that include traffic encryption features. [T1573] Some examples of emails services that Ghost actors have been observed using are Tutanota, Skiff, ProtonMail, Onionmail, and Mailfence.

    Note: Table 2 contains a list of Ghost ransom email addresses.

    Impact and Encryption

    Ghost actors use Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe, which are all ransomware executables that share similar functionality. Ghost variants can be used to encrypt specific directories or the entire system’s storage [T1486]. The nature of executables’ operability is based on command line arguments used when executing the ransomware file. Various file extensions and system folders are excluded during the encryption process to avoid encrypting files that would render targeted devices inoperable.

    These ransomware payloads clear Windows Event Logs [T1070.001], disable the Volume Shadow Copy Service, and delete shadow copies to inhibit system recovery attempts [T1490]. Data encrypted with Ghost ransomware variants cannot be recovered without the decryption key. Ghost actors hold the encrypted data for ransom and typically demand anywhere from tens to hundreds of thousands of dollars in cryptocurrency in exchange for decryption software [T1486].

    The impact of Ghost ransomware activity varies widely on a victim-to-victim basis. Ghost actors tend to move to other targets when confronted with hardened systems, such as those where proper network segmentation prevents lateral moment to other devices.

    Indicators of Compromise (IOC)

    Table 1 lists several tools and applications Ghost actors have used for their operations. The use of these tools and applications on a network should be investigated further.

    Note: Authors of these tools generally state that they should not be used in illegal activity.

    Table 1: Tools Leveraged by Ghost Actors
    Name Description Source
    Cobalt Strike Cobalt Strike is penetration testing software. Ghost actors  use an unauthorized version of Cobalt Strike. N/A
    IOX Open-source proxy, used to establish a reverse proxy to a Ghost C2 server from an internal victim device. github[.]com/EddieIvan01/iox
    SharpShares.exe SharpShares.exe is used to enumerate accessible network shares in a domain. Ghost actors use this primarily for host discovery. github[.]com/mitchmoser/SharpShares
    SharpZeroLogon.exe SharpZeroLogon.exe attempts to exploit CVE-2020-1472 and is run against a target Domain Controller. github[.]com/leitosama/SharpZeroLogon
    SharpGPPPass.exe SharpGPPPass.exe attempts to exploit CVE-2014-1812 and targets XML files created through Group Policy Preferences that may contain passwords. N/A
    SpnDump.exe SpnDump.exe is used to list service principal name identifiers, which Ghost actors use for service and hostname enumeration. N/A
    NBT.exe A compiled version of SharpNBTScan, a NetBIOS scanner. Ghost actors use this tool for hostname and IP address enumeration. github[.]com/BronzeTicket/SharpNBTScan
    BadPotato.exe BadPotato.exe is an exploitation tool used for privilege escalation. github[.]com/BeichenDream/BadPotato
    God.exe God.exe is a compiled version of GodPotato and is used for privilege escalation. github[.]com/BeichenDream/GodPotato
    HFS (HTTP File Server) A portable web server program that Ghost actors use to host files for remote access and exfiltration. rejitto[.]com/hfs
    Ladon 911 A multifunctional scanning and exploitation tool, often used by Ghost actors with the MS17010 option to scan for SMB vulnerabilities associated with CVE-2017-0143 and CVE-2017-0144. github[.]com/k8gege/Ladon
    Web Shell A backdoor installed on a web server that allows for the execution of commands and facilitates persistent access. Slight variation of github[.]com/BeichenDream/Chunk-Proxy/blob/main/proxy.aspx
    Table 2: MD5 File Hashes Associated with Ghost Ransomware Activity
    File name MD5 File Hash
    Cring.exe c5d712f82d5d37bb284acd4468ab3533
    Ghost.exe

    34b3009590ec2d361f07cac320671410

    d9c019182d88290e5489cdf3b607f982

    ElysiumO.exe

    29e44e8994197bdb0c2be6fc5dfc15c2

    c9e35b5c1dc8856da25965b385a26ec4

    d1c5e7b8e937625891707f8b4b594314

    Locker.exe ef6a213f59f3fbee2894bd6734bbaed2
    iex.txt, pro.txt (IOX) ac58a214ce7deb3a578c10b97f93d9c3
    x86.log (IOX)

    c3b8f6d102393b4542e9f951c9435255

    0a5c4ad3ec240fbfd00bdc1d36bd54eb

    sp.txt (IOX) ff52fdf84448277b1bc121f592f753c5
    main.txt (IOX) a2fd181f57548c215ac6891d000ec6b9
    isx.txt (IOX) 625bd7275e1892eac50a22f8b4a6355d
    sock.txt (IOX) db38ef2e3d4d8cb785df48f458b35090

    Ransom Email Addresses

    Table 3 is a subset of ransom email addresses that have been included in Ghost ransom notes.

    Table 3: Ransom Email Addresses
    Email Addresses
    asauribe@tutanota.com ghostbackup@skiff.com rainbowforever@tutanota.com
    cringghost@skiff.com ghosts1337@skiff.com retryit1998@mailfence.com
    crptbackup@skiff.com ghosts1337@tuta.io retryit1998@tutamail.com
    d3crypt@onionmail.org ghostsbackup@skiff.com rsacrpthelp@skiff.com
    d3svc@tuta.io hsharada@skiff.com rsahelp@protonmail.com
    eternalnightmare@tutanota.com just4money@tutanota.com sdghost@onionmail.org
    evilcorp@skiff.com kellyreiff@tutanota.com shadowghost@skiff.com
    fileunlock@onionmail.org kev1npt@tuta.io shadowghosts@tutanota.com
    fortihooks@protonmail.com lockhelp1998@skiff.com summerkiller@mailfence.com
    genesis1337@tutanota.com r.heisler@skiff.com summerkiller@tutanota.com
    ghost1998@tutamail.com rainbowforever@skiff.com webroothooks@tutanota.com

    Ransom Notes

    Starting approximately in August 2024, Ghost actors began using TOX IDs in ransom notes as an alternative method for communicating with victims. For example: EFE31926F41889DBF6588F27A2EC3A2D7DEF7D2E9E0A1DEFD39B976A49C11F0E19E03998DBDA and E83CD54EAAB0F31040D855E1ED993E2AC92652FF8E8742D3901580339D135C6EBCD71002885B.

    MITRE ATT&CK Tactics and Techniques

    See Table 4 to Table 13 for all referenced threat actor tactics and techniques in this advisory. For assistance with mapping malicious cyber activity to the MITRE ATT&CK framework, version 16.1, see CISA and MITRE ATT&CK’s Best Practices for MITRE ATT&CK Mapping and CISA’s Decider Tool.

    Table 4: Initial Access
    Technique Title  ID Use
    Exploit Public-Facing Application T1190 Ghost actors exploit multiple vulnerabilities in public-facing systems to gain initial access to servers.
    Table 5: Execution
    Technique Title  ID Use
    Windows Management Instrumentation T1047 Ghost actors abuse WMI to run PowerShell scripts on other devices, resulting in their infection with Cobalt Strike Beacon malware.
    PowerShell T1059.001 Ghost actors use PowerShell for various functions including to deploy Cobalt Strike.
    Windows Command Shell T1059.003 Ghost actors use the Windows Command Shell to download malicious content on to victim servers.
    Table 6: Persistence
    Technique Title  ID Use
    Account Manipulation T1098 Ghost actors change passwords for already established accounts.
    Local Account T1136.001 Ghost actors create new accounts or makes modifications to local accounts.
    Domain Account T1136.002 Ghost actors create new accounts or makes modifications to domain accounts.
    Web Shell T1505.003 Ghost actors upload web shells to victim servers to gain access and for persistence.
    Table 7: Privilege Escalation
    Technique Title  ID Use
    Exploitation for Privilege Escalation T1068 Ghost actors use a suite of open source tools in an attempt to gain elevated privileges through exploitation of vulnerabilities.
    Token Impersonation/Theft T1134.001 Ghost actors use Cobalt Strike to steal process tokens of processes running at a higher privilege.
    Table 8: Defense Evasion
    Technique Title  ID Use
    Application Layer Protocol: Web Protocols T1071.001 Ghost actors use HTTP and HTTPS protocols while conducting C2 operations. 
    Impair Defenses: Disable or Modify Tools T1562.001 Ghost actors disable antivirus products.
    Hidden Window T1564.003 Ghost actors use PowerShell to conceal malicious content within legitimate appearing command windows.
    Table 9: Credential Access
    Technique Title  ID Use
    OS Credential Dumping T1003 Ghost actors use Mimikatz and the Cobalt Strike “hashdump” command to collect passwords and password hashes.
    Table 10: Discovery
    Technique Title  ID Use
    Remote System Discovery T1018 Ghost actors use tools like Ladon 911 and ShapNBTScan for remote systems discovery.
    Process Discovery T1057 Ghost actors run a ps command to list running processes on an infected device.
    Domain Account Discovery T1087.002 Ghost actors run commands such as net group “Domain Admins” /domain to discover a list of domain administrator accounts.
    Network Share Discovery T1135 Ghost actors use various tools for network share discovery for the purpose of host enumeration.
    Software Discovery T1518 Ghost actors use their access to determine which antivirus software is running.
    Security Software Discovery T1518.001 Ghost actors run Cobalt Strike to enumerate running antivirus software.
    Table 11: Exfiltration
    Technique Title  ID Use
    Exfiltration Over C2 Channel T1041 Ghost actors use both web shells and Cobalt Strike to exfiltrate limited data.
    Exfiltration to Cloud Storage T1567.002 Ghost actors sometimes use legitimate cloud storage providers such as Mega.nz for malicious exfiltration operations.
    Table 12: Command and Control
    Technique Title  ID Use
    Web Protocols T1071.001 Ghost actors use Cobalt Strike Beacon malware and Cobalt Strike Team Servers which communicate over HTTP and HTTPS.
    Ingress Tool Transfer T1105 Ghost actors use Cobalt Strike Beacon malware to deliver ransomware payloads to victim servers.
    Standard Encoding T1132.001 Ghost actors use PowerShell commands to encode network traffic which reduces their likelihood of being detected during lateral movement.
    Encrypted Channel T1573 Ghost actors use encrypted email platforms to facilitate communications. 
    Table 13: Impact
    Technique Title  ID Use
    Data Encrypted for Impact T1486 Ghost actors use ransomware variants Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe to encrypt victim files for ransom.
    Inhibit System Recovery T1490 Ghost actors delete volume shadow copies.

    Mitigations

    The FBI, CISA, and MS-ISAC recommend organizations reference their #StopRansomware Guide and implement the mitigations below to improve cybersecurity posture on the basis of the Ghost ransomware activity. These mitigations align with the Cross-Sector Cybersecurity Performance Goals (CPGs) developed by CISA and the National Institute of Standards and Technology (NIST). The CPGs provide a minimum set of practices and protections that CISA and NIST recommend all organizations implement. CISA and NIST based the CPGs on existing cybersecurity frameworks and guidance to protect against the most common and impactful threats, tactics, techniques, and procedures. Visit CISA’s CPGs webpage for more information on the CPGs, including additional recommended baseline protections.

    • Maintain regular system backups that are known-good and stored offline or are segmented from source systems [CPG 2.R]. Ghost ransomware victims whose backups were unaffected by the ransomware attack were often able to restore operations without needing to contact Ghost actors or pay a ransom.
    • Patch known vulnerabilities by applying timely security updates to operating systems, software, and firmware within a risk-informed timeframe [CPG 1.E].
    • Segment networks to restrict lateral movement from initial infected devices and other devices in the same organization [CPG 2.F].
    • Require Phishing-Resistant MFA for access to all privileged accounts and email services accounts.
    • Train users to recognize phishing attempts.
    • Monitor for unauthorized use of PowerShell. Ghost actors leverage PowerShell for malicious purposes, although it is often a helpful tool that is used by administrators and defenders to manage system resources. For more information, visit NSA and CISA’s joint guidance on PowerShell best practices.
      • Implement the principle of least privilege when granting permissions so that employees who require access to PowerShell are aligned with organizational business requirements.
    • Implement allowlisting for applications, scripts, and network traffic to prevent unauthorized execution and access [CPG 3.A].
    • Identify, alert on, and investigate abnormal network activity. Ransomware activity generates unusual network traffic across all phases of the attack chain. This includes running scans to discover other network connected devices, running commands to list, add, or alter administrator accounts, using PowerShell to download and execute remote programs, and running scripts not usually seen on a network. Organizations that can successfully identify and investigate this activity are better able to interrupt malicious activity before ransomware is executed [CPG 3.A].
      • Ghost actors run a significant number of commands, scripts, and programs that IT administrators would have no legitimate reason for running. Victims who have identified and responded to this unusual behavior have successfully prevented Ghost ransomware attacks.
    • Limit exposure of services by disabling unused ports such as, RDP 3398, FTP 21, and SMB 445, and restricting access to essential services through securely configured VPNs or firewalls.
    • Enhance email security by implementing advanced filtering, blocking malicious attachments, and enabling DMARC, DKIM, and SPF to prevent spoofing [CPG 2.M].

    Validate Security Controls

    In addition to applying mitigations, the FBI, CISA, and MS-ISAC recommend exercising, testing, and validating your organization’s security program against the threat behaviors mapped to the MITRE ATT&CK for Enterprise framework in this advisory.

    To get started:

    1. Select an ATT&CK technique described in this advisory (see Table 3 to Table 13).
    2. Align your security technologies against the technique.
    3. Test your technologies against the technique.
    4. Analyze your detection and prevention technologies’ performance.
    5. Repeat the process for all security technologies to obtain a set of comprehensive performance data.
    6. Tune your security program, including people, processes, and technologies, based on the data generated by this process.

    Reporting

    Your organization has no obligation to respond or provide information back to the FBI in response to this joint advisory. If, after reviewing the information provided, your organization decides to provide information to the FBI, reporting must be consistent with applicable state and federal laws.

    The FBI is interested in any information that can be shared, to include logs showing communication to and from foreign IP addresses, a sample ransom note, communications with threat actors, Bitcoin wallet information, and/or decryptor files.

    Additional details of interest include a targeted company point of contact, status and scope of infection, estimated loss, operational impact, date of infection, date detected, initial attack vector, and host and network-based indicators.

    The FBI, CISA, and MS-ISAC do not encourage paying ransom as payment does not guarantee victim files will be recovered. Furthermore, payment may also embolden adversaries to target additional organizations, encourage other criminal actors to engage in the distribution of ransomware, and/or fund illicit activities. Regardless of whether you or your organization have decided to pay the ransom, the FBI and CISA urge you to promptly report ransomware incidents to FBI’s Internet Crime Complain Center (IC3), a local FBI Field Office, or CISA via the agency’s Incident Reporting System or its 24/7 Operations Center (report@cisa.gov) or by calling 1-844-Say-CISA (1-844-729-2472).

    Disclaimer

    The information in this report is being provided “as is” for informational purposes only. The FBI, CISA, and MS-ISAC do not endorse any commercial entity, product, company, or service, including any entities, products, or services linked within this document. Any reference to specific commercial entities, products, processes, or services by service mark, trademark, manufacturer, or otherwise, does not constitute or imply endorsement, recommendation, or favoring by the FBI, CISA, and the MS-ISAC.

    Version History

    February 19, 2025: Initial version.

    MIL OSI USA News

  • MIL-OSI USA: Naturipe Value Added Fresh LLC Issues Allergy Alert On Undeclared Wheat & Eggs In “Berry Buddies, Berries & Pancakes” Lot # 1097901

    Source: US Food and Drug Administration

    Summary

    Company Announcement Date:
    FDA Publish Date:
    Product Type:
    Food & Beverages
    Allergens
    Reason for Announcement:

    Recall Reason Description

    Undeclared allergen (wheat, eggs)

    Company Name:
    Naturipe Value Added Fresh LLC
    Brand Name:

    Brand Name(s)

    Naturipe Snacks

    Product Description:

    Product Description

    Berry Buddies, Berries & Pancakes bento box snack packs


    Company Announcement

    Naturipe Value Added Fresh LLC. of Alma, GA, is recalling its 2.1 oz./60 gram packages of “Berry Buddies, Berries & Pancakes” bento box snack packs because they contain wheat and EGGS that were not declared on the label. People who have allergies to WHEAT and/or EGGS run the risk of serious allergic reactions if they consume these products

    There were 694 cases of the recalled “Berry Buddies, berries & pancakes, ” distributed at Kroger and Meijer retail stores in Arkansas, Michigan, Ohio, Tennessee, Virginia, Minnesota, Kentucky, Indiana, Illinois, Missouri, Mississippi, West Virginia, and Wisconsin. The product comes in 2.1 oz. / 60 grams, colored plastic package marked with lot #1097901 on the top with an expiration date of 2/25/2025. This product is usually found in the refrigerated section of the stores, in the produce or deli departments.

    No illnesses have been reported to date in connection with this problem.

    The recall was initiated after it was discovered that the incorrect back label was placed on the back of the package. Because of this, the allergens of WHEAT and EGGS were not listed on the label. Subsequent investigation indicates the problem was caused by a production label changeover failure which has since been corrected.

    Customers with a wheat or egg allergy or sensitivity who have purchased the affected product are urged not to consume the product and dispose of it or return it to their place of purchase for a full refund. The product is 2.1-oz / 60-gram package of “BERRY BUDDIES, berries & pancakes” with lot code # 1097901

    Consumers with any questions may contact the company at 1-239-598-6045 or info@naturipefarms.com.


    Company Contact Information


    Product Photos

    MIL OSI USA News

  • MIL-OSI USA: Governor Newsom proposes $125 million in mortgage relief to benefit victims of recent natural disasters

    Source: US State of California 2

    Feb 19, 2025

    Survivors of the Park Fire, Franklin Fire, and the recent Palisades and Eaton fires would be eligible for direct mortgage relief

    What you need to know: Governor Newsom is proposing an over $125 million package that includes disaster mortgage relief for homeowners whose homes have been damaged or destroyed by natural disasters since 2023 and are at risk of foreclosure, as well as mortgage counseling services.

    LOS ANGELES — Governor Newsom today announced a new proposal to create an over $125 million mortgage relief program to assist homeowners whose homes were destroyed or severely damaged by recent natural disasters, placing them at risk of foreclosure. The proposal also includes funding to extend an existing counseling services program which would help affected homeowners navigate their recovery. The package would utilize existing mortgage settlement funding, and would not impact the proposed 2025-2026 budget. 

    “As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds. This disaster mortgage relief program would help lift this burden and give families more time to focus on recovery.”

    Governor Gavin Newsom

    The package will be administered by the California Housing Finance Agency (CalFHA) and includes over $100 million in direct mortgage assistance, with an additional $25 million to extend an existing program that provides mortgage counseling and serves survivors by offering guidance on FEMA disaster assistance and other related needs. The program will provide mortgage relief for homeowners at risk of foreclosure and whose property was destroyed or substantially damaged as a result of declared emergencies since January 1, 2023. The proposal will be considered at CalHFA’s next meeting on February 20. Survivors of natural disasters since 2023, including those affected by the Park Fire, Franklin Fire, and the recent Palisades and Eaton Fires, would be eligible for mortgage assistance. Once approved, the direct assistance program and eligibility criteria will be developed and announced in more detail.

    The Governor last month announced that five major lenders (Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo) and recently announced that there are now 420 state-chartered banks, credit unions, and mortgage lenders who have committed to offering impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief.

    Funding for the mortgage relief program comes from settlement funds California secured from big banks resolving allegations of misconduct during the mortgage crisis.

    This adds to the Governor’s work to provide tax and mortgage relief to those impacted by the Los Angeles area firestorms. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Additionally, the state extended the January 31, 2025, sales and use tax filing deadline for Los Angeles County taxpayers until April 30 — providing critical tax relief for businesses. Governor Newsom suspended penalties and interest on late property tax payments for a year, effectively extending the state property tax deadline. The Governor also worked with state– and federally-chartered banks that have committed to providing mortgage relief for survivors in certain zip codes.

    Historic recovery and rebuilding efforts — faster than ever before 

    As the Los Angeles community recovers from the firestorm disaster, Governor Newsom is removing barriers and helping survivors quickly by: 

    • Cutting red tape to help rebuild Los Angeles faster and stronger. Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses destroyed — suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act. The Governor also issued an executive order further cutting red tape by reiterating that permitting requirements under the California Coastal Act are suspended for rebuilding efforts and directing the Coastal Commission not to issue guidance or take any action that interferes with or conflicts with the Governor’s executive orders. The Governor also issued an executive order removing bureaucratic barriers, extending deadlines, and providing critical regulatory relief to help fire survivors rebuild, access essential services, and recover more quickly.
    • Fast-tracking temporary housing and protecting tenants. To help provide necessary shelter for those immediately impacted by the firestorms, the Governor issued an executive order to make it easier to streamline construction of accessory dwelling units, allow for more temporary trailers and other housing, and suspend fees for mobile home parks. Governor Newsom also issued an executive order that prohibits landlords in Los Angeles County from evicting tenants for sharing their rental with survivors displaced by the Los Angeles-area firestorms.
    • Mobilizing debris removal and cleanup. With an eye toward recovery, the Governor directed fast action on debris removal work and mitigating the potential for mudslides and flooding in areas burned. He also signed an executive order to allow expert federal hazmat crews to start cleaning up properties as a key step in getting people back to their properties safely. The Governor also issued an executive order to help mitigate risk of mudslides and flooding and protect communities by hastening efforts to remove debris, bolster flood defenses, and stabilize hillsides in affected areas. 

    • Safeguarding survivors from price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. Report violations to the Office of the Attorney General here.

    • Directing immediate state relief. The Governor signed legislation providing over $2.5 billion to immediately support ongoing emergency response efforts and to jumpstart recovery efforts for Los Angeles. California quickly launched CA.gov/LAfires as a single hub of information and resources to support those impacted and bolsters in-person Disaster Recovery Centers. The Governor also launched LA Rises, a unified recovery initiative that brings together private sector leaders to support rebuilding efforts. Governor Newsom announced that individuals and families directly impacted by the recent fires living in certain zip codes may be eligible to receive Disaster CalFresh food benefits.

    • Getting kids back in the classroom. Governor Newsom signed an executive order to quickly assist displaced students in the Los Angeles area and bolster schools affected by the firestorms.

    • Protecting survivors from real estate speculators. The Governor issued an executive order to protect firestorm survivors from predatory land speculators making aggressive and unsolicited cash offers to purchase their property.

    • Helping businesses and workers get back on their feet. The Governor issued an executive order to support small businesses and workers, by providing relief to help businesses recover quickly by deferring annual licensing fees and waiving other requirements that may impose barriers to recovery.

    •  

    Press Releases, Recent News

    Recent news

    News State continues raising awareness of dangerous drug  What you need to know: California is using a multifaceted approach to tackle illicit fentanyl, including seizing nearly $300 million of illicit fentanyl since 2023 and increasing public education in schools…

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services. Stone has been Deputy Director of the Disability Insurance Branch at…

    News What you need to know: California’s work to pre-deploy resources ahead of this week’s major storms paid off with successful rescue efforts and no major damage reported. SACRAMENTO — Governor Gavin Newsom today praised the proactive emergency response efforts that…

    Feb 19, 2025

    What you need to know: The passage of Proposition 1 by California voters adds rocket fuel to Governor Gavin Newsom’s transformational overhaul of the state’s behavioral health system. These reforms refocus existing funds to prioritize Californians with the most serious mental health and substance use issues, who are too often experiencing homelessness. They also fund more than 11,150 new behavioral health beds and supportive housing units and 26,700 outpatient treatment slots.

    Los Angeles, California – California took a major step forward in correcting the damage from 50 years of neglect to the state’s mental health system with the passage of Proposition 1. This historic measure — a signature priority of Governor Gavin Newsom — adds rocket fuel to California’s overhaul of the state’s behavioral health systems. It provides a full range of mental health and substance abuse care, with new accountability metrics to ensure local governments deliver for their communities.

    This is the biggest reform of the California mental health system in decades and will finally equip partners to deliver the results all Californians need and deserve. Treatment centers will prioritize mental health and substance use support in the community like never before. Now, it’s time to roll up our sleeves and begin implementing this critical reform – working closely with city and county leaders to ensure we see results.

    Governor Gavin Newsom

    newsom-news-template
    IMG_3682-min
    contact-governor-landing
    workers-FxAJ5fkakAAtVI3
    priorities-and-progress-image
    economy-F-isBKpbsAAxdab
    gun-violence-San Diego Guns Package 2.18.22_2

    What they’re saying: 

    • Sacramento Mayor Darrell Steinberg, original author of the Mental Health Services Act: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health. Now, with the passage of Proposition 1. California is delivering on decades old promises to help people living with brain-based illnesses, to live better lives, to live independently and to live with dignity in our communities. This is a historic moment and the hard work is ahead of us.“
    • Senator Susan Eggman (D-Stockton), author of Senate Bill 326: “Today marks a day of hope for thousands of Californians who are struggling with mental illness – many of whom are living unhoused. I am tremendously grateful to my fellow Californian’s for passing this important measure.  And I am very appreciative of this Governor’s leadership to transform our behavioral health care system!”
    • Assemblymember Jacqui Irwin (D-Thousand Oaks), author of Assembly Bill 531: “This started as an audacious proposal to address the root cause of homelessness and today, Californians can be proud to know that they did the right thing by passing Proposition 1. Now, it’s time for all of us to get to work, and make sure these reforms are implemented and that we see results.”

    Bigger picture: Transforming the Mental Health Services Act into the Behavioral Health Services Act and building more community mental health treatment sites and supportive housing is the last main pillar of Governor Newsom’s Mental Health Movement – pulling together significant recent reforms like 988 crisis line, CalHOPE, CARE Court, conservatorship reform, CalAIM behavioral health expansion (including mobile crisis care and telehealth), Medi-Cal expansion to all low-income Californians, Children and Youth Behavioral Health Initiative (including expanding services in schools and on-line), Older Adult Behavioral Health Initiative, Veterans Mental Health Initiative, Behavioral Health Community Infrastructure Program, Behavioral Health Bridge Housing, Health Care Workforce for All and more.

    More details on next step here

    Press Releases, Recent News

    Recent news

    News State continues raising awareness of dangerous drug  What you need to know: California is using a multifaceted approach to tackle illicit fentanyl, including seizing nearly $300 million of illicit fentanyl since 2023 and increasing public education in schools…

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services. Stone has been Deputy Director of the Disability Insurance Branch at…

    News What you need to know: California’s work to pre-deploy resources ahead of this week’s major storms paid off with successful rescue efforts and no major damage reported. SACRAMENTO — Governor Gavin Newsom today praised the proactive emergency response efforts that…

    Feb 19, 2025

    What you need to know: The passage of Proposition 1 by California voters adds rocket fuel to Governor Gavin Newsom’s transformational overhaul of the state’s behavioral health system. These reforms refocus existing funds to prioritize Californians with the most serious mental health and substance use issues, who are too often experiencing homelessness. They also fund more than 11,150 new behavioral health beds and supportive housing units and 26,700 outpatient treatment slots.

    Los Angeles, California – California took a major step forward in correcting the damage from 50 years of neglect to the state’s mental health system with the passage of Proposition 1. This historic measure — a signature priority of Governor Gavin Newsom — adds rocket fuel to California’s overhaul of the state’s behavioral health systems. It provides a full range of mental health and substance abuse care, with new accountability metrics to ensure local governments deliver for their communities.

    This is the biggest reform of the California mental health system in decades and will finally equip partners to deliver the results all Californians need and deserve. Treatment centers will prioritize mental health and substance use support in the community like never before. Now, it’s time to roll up our sleeves and begin implementing this critical reform – working closely with city and county leaders to ensure we see results.

    Governor Gavin Newsom

    newsom-news-template
    IMG_3682-min
    contact-governor-landing
    workers-FxAJ5fkakAAtVI3
    priorities-and-progress-image
    economy-F-isBKpbsAAxdab
    gun-violence-San Diego Guns Package 2.18.22_2

    What they’re saying: 

    • Sacramento Mayor Darrell Steinberg, original author of the Mental Health Services Act: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health. Now, with the passage of Proposition 1. California is delivering on decades old promises to help people living with brain-based illnesses, to live better lives, to live independently and to live with dignity in our communities. This is a historic moment and the hard work is ahead of us.“
    • Senator Susan Eggman (D-Stockton), author of Senate Bill 326: “Today marks a day of hope for thousands of Californians who are struggling with mental illness – many of whom are living unhoused. I am tremendously grateful to my fellow Californian’s for passing this important measure.  And I am very appreciative of this Governor’s leadership to transform our behavioral health care system!”
    • Assemblymember Jacqui Irwin (D-Thousand Oaks), author of Assembly Bill 531: “This started as an audacious proposal to address the root cause of homelessness and today, Californians can be proud to know that they did the right thing by passing Proposition 1. Now, it’s time for all of us to get to work, and make sure these reforms are implemented and that we see results.”

    Bigger picture: Transforming the Mental Health Services Act into the Behavioral Health Services Act and building more community mental health treatment sites and supportive housing is the last main pillar of Governor Newsom’s Mental Health Movement – pulling together significant recent reforms like 988 crisis line, CalHOPE, CARE Court, conservatorship reform, CalAIM behavioral health expansion (including mobile crisis care and telehealth), Medi-Cal expansion to all low-income Californians, Children and Youth Behavioral Health Initiative (including expanding services in schools and on-line), Older Adult Behavioral Health Initiative, Veterans Mental Health Initiative, Behavioral Health Community Infrastructure Program, Behavioral Health Bridge Housing, Health Care Workforce for All and more.

    More details on next step here

    Press Releases, Recent News

    Recent news

    News State continues raising awareness of dangerous drug  What you need to know: California is using a multifaceted approach to tackle illicit fentanyl, including seizing nearly $300 million of illicit fentanyl since 2023 and increasing public education in schools…

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services. Stone has been Deputy Director of the Disability Insurance Branch at…

    News What you need to know: California’s work to pre-deploy resources ahead of this week’s major storms paid off with successful rescue efforts and no major damage reported. SACRAMENTO — Governor Gavin Newsom today praised the proactive emergency response efforts that…

    MIL OSI USA News

  • MIL-OSI Economics: DG Okonjo-Iweala to members: Use the WTO as a platform to engage

    Source: World Trade Organization

    “It is imperative that we continue to strengthen the multilateral trading system, ensuring that it remains a source of stability and opportunity for all members,” DG Okonjo-Iweala said. “The WTO was created precisely to manage times like these — to provide a space for dialogue, prevent conflicts from spiralling, and support an open, predictable trading environment.”

    “Let us make full use of this platform to engage with one another in good faith, address concerns constructively and calmly, and explore cooperative solutions that uphold and enhance the balance of global trade relations.”

    A total of 32 members took the floor following the Director-General’s remarks. Overall, members emphasized the importance of the WTO in fostering global economic growth and development, particularly for developing and least developed countries. Many who took the floor called for restraint in actions that could undermine the system and stressed the importance of upholding the WTO’s principles and rules.

    DG Okonjo-Iweala said she has been meeting with WTO members to discuss the broader geopolitical landscape and explore how the organization can approach the situation. “The key message I have shared is that amid the current uncertainties, we must maintain cool heads and remain open to dialogue,” she said.

    She informed members that Secretariat staff is upgrading the WTO’s Tariff Analysis Online database based on member feedback. The new database, to be called WTO Tariff And Trade Data, will be launched in the WTO’s Committee On Market Access on 4 March.

    “This will be a much more user-friendly system that will facilitate tariff and trade analysis,” she said. As you consider today’s emerging tariff issues, the Secretariat is there to assist any member requiring assistance in analysing the tariff situation.”

    In her intervention, DG Okonjo-Iweala underlined the importance of using the current situation to push ahead with reform of the WTO.

    “I encourage all of you to view this moment as an inflection point — an opportunity to think more strategically and purposefully about what we want from this organization and how we can make it more results-driven,” she added.

    DG Okonjo-Iweala said leaders, ministers and stakeholders she has met with in recent weeks “expect the WTO to address longstanding issues and respond to today’s global trade landscape … it’s time to return to the negotiating table in earnest.”

    This means making substantial progress in the agriculture negotiations a top priority. It also means members should use early 2025 to ensure the entry into force of the Agreement on Fisheries Subsidies; make a concerted effort to wrap up the second wave of the fisheries subsidies negotiations; reach a mutually agreeable solution regarding the incorporation of the plurilateral Investment Facilitation for Development Agreement (IFDA) and the Agreement on Electronic Commerce into the WTO legal framework; continue progress on dispute settlement reform; and move ahead on development issues, DG Okonjo-Iweala said.

    “The world has changed,” DG Okonjo-Iweala said. “We cannot come here to continue doing the same things we’ve been doing.”

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    MIL OSI Economics

  • MIL-OSI Economics: Somalia successfully kick-starts its WTO accession process

    Source: WTO

    Headline: Somalia successfully kick-starts its WTO accession process

    Somalia’s Deputy Prime Minister Salah Ahmed Jama led the high-level delegation in Geneva. Several government officials from a wide range of ministries and agencies joined virtually from Mogadishu. Mr Jama said that Somalia’s first Working Party meeting marks “a historic moment in the country’s journey toward economic recovery, integration into the global trading system, and the realization of the nation’s aspirations for sustainable development and prosperity.
    “Somalia today is a nation on the rise, one that departed with the challenges of the past and has keenly focused on a prosperous future. Our government, under the leadership of His Excellency President Hassan Sheikh Mahamoud, has indeed embarked on very transformational changes,” he said.
    “For Somalia, WTO membership is not merely an end goal but a vital mechanism to achieve sustainable economic growth, attract investment, and create meaningful opportunities for our people. We are dedicated to aligning our trade policies with global standards, enhancing institutional capacity, and ensuring that our economic transformation is inclusive and equitable, benefiting all segments of society,” he added.
    Sadiq Abdikarim Haji Ibrahim, WTO Chief Trade Negotiator, recognized WTO accession as a rigorous process requiring transparency, policy coherence, and sustained engagement. He said that Somalia approaches this process with openness and a constructive spirit. “We are ready to work closely with WTO members to address concerns, provide necessary clarifications, and reaffirm our commitment to a rules-based trading system,” he stated.
    WTO Deputy Director-General Xiangchen Zhang highlighted Somalia’s strong political will and commitment to moving the accession process forward. “Today is a historical moment for Somalia, but it is just the beginning of a journey where I am sure Somalia will make its own history, as Comoros and Timor-Leste did recently. They are both least developed countries and fragile and conflict-affected states, who can serve as a good model and inspiration for Somalia.” His statement is available here.
    The Chair of the Working Party on the Accession of Somalia, Ambassador Nina Tornberg of Sweden, stated that Somalia has advanced technical work and stepped up its political engagement in the past few years, recalling her meeting with President Hassan Sheikh Mohamud in June 2024.
    She added that the Working Party noted Somalia’s strong commitment to economic integration, both at the multilateral and regional level. “As Somalia joined the East African Community (EAC) in 2024, it is crucial to ensure coordination at all levels between EAC membership and WTO accession, to enable Somalia to focus on priority reforms and reinforce its economic resilience,” she said.
    Members welcomed Somalia’s renewed commitment to joining the WTO, emphasizing the importance of the accession for the country’s integration into global trade and for its stability. Delegations acknowledged Somalia’s constraints as an LDC and committed to supporting Somalia’s accession process. Members said they are looking forward to discussing Somalia’s efforts to align its regulations with WTO rules, while providing support and guidance throughout the accession process.
    Moving forward, Ambassador Tornberg invited the WTO Secretariat to prepare a Factual Summary of Points Raised based on the exchanges held, which will guide the continued examination of Somalia’s trade regime. Somalia was requested to submit a comprehensive set of negotiating inputs before the next Working Party meeting. The Chair said that, given Somalia’s interest in advancing its accession process, the aim would be for the next meeting to take place towards the end of the year, subject to the availability of the required inputs.
    The Working Party meeting took place immediately before the 4th edition of the Trade for Peace Week, which has featured several sessions focused on Somalia and has discussed the private sector’s role for sustainable peace and stability.  
    The Working Party meeting was followed on 18 February by a Round Table on Technical Assistance for Somalia’s WTO Accession. The round table was attended by several members and developing partners, including the East African Community Secretariat, the European Investment Fund (EIF), the International Trade Centre (ITC), UN Trade and Development (UNCTAD) and the World Bank, which provide capacity-building support to Somalia. The discussions aimed at presenting Somalia’s accession-related needs in terms of technical assistance and capacity building and coordinating available and future support.
    Background
    Somalia has the longest coastline on the African continent and a population of approximately 18 million. With an economy highly dependent on livestock production, the government has committed itself over recent years to developing key sectors of the Somali economy, with special emphasis on economic enablers such as energy, transportation and financial markets.
    Somalia submitted its application for WTO accession, signed by President Hassan Sheikh Mohamud, in December 2015 during the 10th Ministerial Conference (MC10) in Nairobi, Kenya. The General Council established the Working Party on 7 December 2016. Somalia was a central part of the g7+ WTO Accessions Group launch during the 11th Ministerial Conference in Buenos Aires in 2017, inspiring the vision for the creation of the Trade for Peace Programme.
    More information on this accession is available here.

    Share

    MIL OSI Economics

  • MIL-OSI United Nations: Experts of the Committee on Economic, Social and Cultural Rights Welcome the Philippines’ Human Rights Commitments , Ask about Attacks on Human Rights Defenders, Indigenous Land Rights and Drug Use Policies

    Source: United Nations – Geneva

    The Committee on Economic, Social and Cultural Rights today concluded its review of the seventh periodic report of the Philippines, with Committee Experts welcoming the State’s human rights plans and commitments, and asking about attacks on human rights defenders, indigenous land rights and drug use policies.

    Asraf Ally Caunhye, Committee Expert and Leader of the Taskforce for the Philippines, in opening remarks, welcomed the State party’s human rights plans and commitments.

    Hesaid, however, that there had been 305 killings of human rights defenders in the Philippines since the last review. The Philippines ranked third globally for killings of human rights defenders. What measures were in place to ensure that those responsible for these crimes were prosecuted and sanctioned?

    Mr. Caunhye said indigenous peoples continued to face violations of their economic, social and cultural rights through the destruction of ancestral lands by extractive industries approved by the State. How would the State party protect the rights of indigenous peoples?

    Ludovic Hennebel, Committee Vice-Chair and Member of the Taskforce for the Philippines, asked about plans to decriminalise drugs for personal use and implement alternatives to imprisonment for drug users. What measures were in place to put an end to the “war on drugs” and to provide reparations to victims?

    Rosemarie G. Edillon, Undersecretary, Policy and Planning Group, National Economic and Development Authority of the Philippines and head of the delegation, introducing the report, said economic development, resilience building, and poverty reduction were central to the Government’s human rights agenda. From 2015 to 2023, the poverty rate dropped from 23.5 to 15.5 per cent of the population. The State was providing social protection to the most vulnerable and disadvantaged.

    There was no State policy to attack human rights defenders, the delegation said. There were remedies to address violations of the right to life, and freedom of association and assembly.

    On indigenous land rights, the delegation said the Indigenous Peoples’ Rights Act protected designated ancestral grounds and cultural heritage as “no-go zones” for development projects and emphasised free, prior and informed consent for all such projects. The Government was mapping and registering indigenous cultural assets to protect them.

    Regarding drug policies, the delegation said the Government was adopting a humanitarian approach to drug use and rehabilitation. Many drug users were treated in communities rather than in rehabilitation centres. Persons who participated in rehabilitation programmes were removed from criminal offender lists.

    In concluding remarks, Mr. Caunhye said discussions had brought to light issues that needed to be addressed to strengthen the implementation of economic, social and cultural rights in the Philippines. This information would inform the Committee’s concluding observations.

    Ms. Edillon, in her concluding remarks, said the State party was united in its goal of advancing economic, social and cultural rights. It would continue with actions that would create change and realise the economic, social and cultural rights of all citizens.

    In her concluding remarks, Laura-Maria Craciunean-Tatu, Committee Chair, thanked the delegation for participating in the dialogue and for providing comprehensive answers.

    The delegation of the Philippines was comprised of representatives from the National Security Council; the National Commission on Muslim Filipinos; the National Commission on Indigenous Peoples; the National Council on Disability Affairs; the Philippine National Police; the Department of Health; the Presidential Human Rights Committee Secretariat; the Dangerous Drugs Board; the Department of Justice; the Department of Health; the National Economic and Development Authority; the Philippine Drug Enforcement Agency; the Department of Education; the Department of Labour and Employment; the Department of Social Welfare and Development; the Department of Foreign Affairs; and the Permanent Mission of the Philippines to the United Nations Office at Geneva.

    The Committee’s seventy-seventh session is being held until 28 February 2025. All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage . Webcasts of the meetings of the session can be found here , and meetings summaries can be found here .

    The Committee will next meet in public at 5:30 p.m. on Friday, 28 February, to close its seventy-seventh session.

    Report.

    The Committee has before it the seventh periodic report of the Philippines (E/C.12/PHL/7).

    Presentation of Report

    ROSEMARIE G. EDILLON, Undersecretary, Policy and Planning Group, National Economic and Development Authority of the Philippines and head of the delegation, said that through the Philippine Development Plan, which she led, the Government aimed to enable and empower every Philippine citizen to achieve a comfortable lifestyle and a secure future. The 1987 Constitution served as a firm foundation for the protection and promotion of economic, social and cultural rights. This foundation was reinforced by laws, policies and programmes that supported workers, promoted equitable economic participation, and provided social protection.

    The Government had put in place a plan for economic and social transformation that accelerated economic and social recovery from the COVID-19 pandemic toward a prosperous, inclusive and resilient society and achievement of the Sustainable Development Goals. Economic development, resilience building, and poverty reduction were central to the Government’s human rights agenda. From 2015 to 2023, the poverty rate dropped from 23.5 per cent to 15.5 per cent of the population. The State had been employing a multi-dimensional strategy to reduce poverty, expanding the economic pie, facilitating access by the poor to the drivers of economic growth, and providing social protection to the most vulnerable and disadvantaged. It had broad-based programmes like the conditional cash transfer programme, which benefitted over 4.4 million households. Beneficiaries were also covered by other social development programmes.

    The labour market had made a strong recovery after the pandemic. Employment figures were favourable, but there was much volatility and uncertainty in domestic and external fronts. For this reason, Congress had passed legislation that mandated a 10-year labour market development plan, which promoted a dynamic, efficient and inclusive labour market environment.

    Legislative measures had been enacted to institutionalise and expand social protection. In healthcare, the universal health care law ensured automatic PhilHealth coverage for all citizens. Family planning initiatives had prevented an estimated 774,000 unsafe abortions and 1,400 maternal deaths annually. The Mental Health Act expanded services to ensure informed consent in treatment, prohibit shackling, and provide culturally sensitive care. Ongoing efforts focused on breaking barriers such as attitudinal biases, inadequate modifications in public spaces, and employment challenges faced by persons with disabilities.

    Following disruptions caused by the pandemic, the Department of Education launched the basic education development plan 2030 and the learning recovery continuity plan to reverse learning loss. Enrolment had rebounded to 28.5 million learners in the 2022–2023 school year, surpassing pre-pandemic levels. The Government was also strengthening access to special education through policies like Department of Education order no. 44, which provided clear guidance for implementing programmes tailored for learners with disabilities.

    Free, prior and informed consent was a cornerstone of the State’s indigenous peoples’ rights. Although challenges persisted in its effective enforcement, the Philippines continued to collaborate with key stakeholders and communities to ensure that indigenous rights and sustainable development initiatives were effectively upheld. It continued to promote and safeguard the cultural integrity of indigenous peoples by conducting initiatives that highlighted traditional knowledge, practices and crafts.

    Building on these initiatives, the Government, in collaboration with civil society, had launched the fourth Philippine human rights plan, a comprehensive roadmap for protecting and promoting human rights. Its second thematic chapter focused on the country’s commitment to the Covenant, integrating human rights into national development efforts and prioritising marginalised communities. The plan was aligned with the Philippine Development Plan 2023-2028 and the Sustainable Development Goals.

    The Philippines reaffirmed its unwavering commitment to the Covenant and its principles. The dialogue with the Committee was an opportunity for introspection and growth. The Committee’s feedback and recommendations would serve as a valuable guide as the State strived to build a society where every citizen could progressively realise their economic, social and cultural rights; and no one was left behind.

    Questions by Committee Experts

    ASRAF ALLY CAUNHYE, Committee Expert and Country Rapporteur, asked about measures taken to incorporate the Covenant into the domestic legal system and to ensure the primacy of Covenant rights. In which court cases had Covenant rights been invoked? The Committee welcomed the State party’s human rights plans and commitments. What steps had been taken to ratify the Optional Protocol? 

    What system was in place to ensure that the judiciary was free from political influence? There had been 305 killings of human rights defenders since the last review. The Philippines ranked third globally for killings of human rights defenders. The existing legal institution was reportedly unable to prevent the red-tagging and killing of human rights defenders, including persons from indigenous communities and minority groups. What measures were in place to ensure that those responsible for these crimes were prosecuted and sanctioned?

    How did the Government prevent the abusive use of the Anti-Terrorism Act to restrict the activities of human rights defenders? What had barred the enactment of the bills on human rights defenders and the Human Rights Charter? How would the national human rights institution be enabled to function independently in accordance with the Paris Principles?

    Indigenous peoples continued to face violations of their economic, social and cultural rights through the destruction of ancestral lands. They were being deprived of their land management and food systems by extractive industries approved by the State. How would the State party protect the rights of indigenous peoples? What measures were in place to ensure that the National Commission on Indigenous Peoples expedited the issuance of land titles?

    What steps had been taken to ensure that free, prior and informed consent was obtained for extractive projects? What progress had been made in developing a national action plan on business and human rights? How did the State ensure that enterprises exercised due diligence when carrying out extractive activities and provided reparations for indigenous peoples affected by such activities?

    What measures were in place to implement the State’s commitments under the Paris Agreement? What resources had been allocated to addressing climate change? How was the State party addressing environmental pollution caused by extractive and logging activities?

    Despite a decline in poverty levels, 18 per cent of the population lived below the poverty line. Prevailing inequality in wealth remained high. The top 10 per cent of the population earned 45 per cent of gross national income, while the bottom 50 per cent earned only around four per cent. What measures would the State party take to eradicate poverty and support households living in poverty, rationalise fiscal policy, and introduce a progressive tax base that increased taxes for the wealthiest?

    Corruption was reportedly rampant in the police, the judiciary and other State institutions. What measures were in place to combat corruption? Were there cases in which politicians had been sentenced for corruption offences? Were there measures to allow citizens to access information held by Government bodies? Would the State party set up an anti-corruption commission or court?

    There was no anti-discrimination law in the Philippines. What steps had been taken to adopt an anti-discrimination bill? How would the State party protect vulnerable persons from discrimination? What measures had the State party taken to increase the representation of women in politics and decision-making positions, and in high income sectors of the economy? How was the State party providing childcare services to empower women to take part in the workforce?

    Responses by the Delegation 

    The delegation said the judiciary was independent and the Judicial Bar Council nominated judges independently. Justice programmes had been included in Government fiscal programmes to ensure that they were appropriately funded.

    The conditional cash transfer programme benefitted the poorest households with family members who were still in school. The poverty rate was at 15.5 per cent as of 2023. This rate had decreased thanks to State support programmes. The State party was investing in physical and digital connectivity for island provinces, which facilitated poor households’ access to growth centres.

    The Philippines was vulnerable to natural disasters. The Government was investing in disaster risk reduction and mitigation. Concerning the Paris Agreement, the State’s goals were to reduce emissions by 75 per cent, reduce dependence on fossil fuels, and increase the use of renewable energy. The Electric Vehicle Industry Development Act reduced tariffs on electric vehicles to encourage their import and use.

    The State party had specific laws on anti-discrimination in different fields. It did not have a bill on sexual orientation and gender identity, but had issued an executive order that concerned discrimination on the basis of gender preferences.

    The State party’s justice system, including the Supreme Court, and its national human rights institution, the Commission on Human Rights, effectively addressed complaints of human rights violations. There was thus no need to ratify the Optional Protocol.

    There were many non-governmental organizations in the Philippines that had expressed opposition to the current bill on human rights defenders. The State party had engaged with civil society organizations on the revision of the bill. The bill called for human rights defenders to not advocate for the violent overthrow of the Government.

    The State party was supporting the participation of women in the labour force. It had advocated for policies and legislation that allowed for nighttime work for women, safe spaces in workplaces, lengthened maternity and paternity leave and telework, and was conducting studies on inclusive work arrangements for women, youth and persons with disabilities.

    The Philippines’ Anti-Terrorism Act supported the country’s response to terrorism and safeguarded the rights of those accused of the crime. The State had issued guidelines on detentions and surveillance that ensured that persons’ rights were not violated. The Philippines’ rank in the Global Terrorism Indexhad fallen thanks to implementation of the Act. Investigations had been launched into all claims of misuse, and arrest warrants had been issued for officers who had misused the law. Enforcement of the Act was carried out with the highest level of responsibility. The State party ensured that its actions adhered to due process and the rule of law.

    The Philippines was a State party to the United Nations Convention against Corruption and had implement a national corruption prevention programme. Recently, it had hosted a regional conference on open governance and enacted a revision to the Government Procurement Act, which closed loopholes. An electronic procurement service had been launched to increase transparency. Many Government processes had been digitised, lessening opportunities for corruption.

    The Indigenous Peoples’ Rights Act protected designated ancestral grounds and cultural heritage as “no-go zones” for development projects and emphasised free, prior and informed consent for all such projects. The Government was mapping and registering indigenous cultural assets to protect them.

    The State had an indirect taxation system, as many families relied on overseas remittances for their income, which were not being taxed. The tax system punished undesirable behaviours such as the consumption of alcohol and cigarettes. Revenues from these taxes were being allocated to the health sector.

    Follow-Up Questions by Committee Experts 

    Committee Experts asked follow-up questions on measures to ensure that internally displaced persons had access to adequate food, basic housing, healthcare, education and social protection services; the status of the bill on the protection of internally displaced persons; measures other than the tax system to reduce disparities in wealth and income; steps to ensure gender parity in Government bodies; whether the State party had an implementation mechanism for recommendations issued to it by international bodies; how the State party linked climate adaptation policies with the land registration system to compensate people affected by natural disasters; how the State party could receive income from major emitters to fund climate adaptation plans; the ramifications of tax policies on economic, social and cultural rights; projects to strengthen anti-corruption bodies; and whether the State party trained judges and prosecutors on the Covenant.

    Responses by the Delegation

    The delegation said the National Commission on Indigenous Peoples was revising guidelines on the Indigenous Peoples’ Rights Act. The Commission had issued 272 approved ancestral domain titles to indigenous peoples.

    The national disaster risk reduction management framework addressed preparedness, rescue, response, recovery and rehabilitation. The State party conducted post-disaster needs assessments and tried to compensate for economic loss. A “digital locker” was being developed to allow citizens to store land titles, which would support reparation claims in cases of disasters.

    Discussions on the national action plan on business and human rights were in advanced stages. The State party sought to develop business and human rights policies that addressed specific issues related to children, indigenous peoples and environmental protection.

    The Government was interested in generating revenues from major emitters. It had developed a law that allocated resources to measuring loss and damage from climate change, which would help in this regard. The State party hosted the Loss and Damage Fund, and there were many international investments in environmental, social and governance projects in the Philippines.

    The Philippines had been recognised by the United Nations for its national recommendations tracking database. Judges were provided with training on the Covenant.

    Women parliamentary members had pushed for policies promoting women’s rights and inclusive governance. Community consultations and education programmes were in place to promote women’s participation in politics.

    The State party had proposed bills to amend taxes on passive income. It provided tax incentives to businesses that chose to operate outside of Manila.

    Questions by a Committee Expert

    SEREE NONTHASOOT, Committee Expert and Member of the Taskforce for the Philippines , expressed concerns about high levels of unemployment and informal employment in the Philippines. The informal sector provided livelihoods for about 60 per cent of the population, the majority of whom were female. What measures were in place to regularise the informal sector? The Committee was concerned about the quality of employment provided to persons with disabilities.

    What measures were in place to inspect sweatshops and to issue sanctions to employers who violated workers’ rights? What measures were in place to address workplace harassment and gender-based violence. Who was excluded from the social security system? It reportedly did not cover persons in street situations.

    There was significant variation between minimum wages in the capital and other regions. How did the State party support adequate living and working standards outside the capital? Did workers who were not paid minimum wages have access to a complaints mechanism? There had been a significant increase in child labour in the State party. How was this being addressed?

    The Committee was concerned by reports of red-tagging and killing of trade union workers. How was the Government promoting freedom of association? What was the role of relevant agencies in protecting trade union rights and the right to strike?

    Responses by the Delegation

    The delegation said the unemployment rate for 2023-2024 was 4.3 per cent. The rate quickly recovered after the pandemic. The State party had determined that less than 40 per cent of workers were in the informal sector. It was developing policy recommendations related to protecting the rights of informal sector workers and revising occupational safety and health standards to protect against accidents. The State was expanding opportunities for skills training and upskilling to help citizens increase their employability. There was a policy and regulatory framework in place to protect the rights of workers in the “gig economy”.

    The Government was encouraging investment outside of the capital. It conducted consultations and examined trends in real wages before setting regional minimum wages. Setting a standard minimum wage for the entire State would discourage businesses from investing in remote provinces.

    There was no State policy to attack human rights defenders. There were remedies to address violations of the right to life, and freedom of association and assembly. The Government rejected the word red-tagging due to the absence of such a policy.

    The “Reach Out” programme aimed to reach out to families in street situations, welcoming them in temporary shelters. Abandoned children were placed in foster families. Over 2,000 individuals had benefitted from the programme in 2023.

    The National Commission against Child Labour had inspected over 10,000 establishments in 2020, identifying violations of child labour laws. Many children identified as labourers were provided with educational materials and support. Family cash transfer programmes included seminars for parents which discouraged child labour. Parents who engaged their children in child labour could be taken off the programme.

    The Government was providing training for persons with disabilities to help them pass eligibility requirements for public sector jobs. It also conducted skills matching to help persons with disabilities access work in the private sector.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on whether regional minimum wages were indexed and reviewed regularly; the role of the Government in protecting Filipino national migrant workers overseas; the number of labour inspections conducted annually; whether the Commission on Human Rights received complaints from workers; whether the State party would adopt policies mandating businesses to adopt diversity and inclusion regulations; plans to revise the Labour Code to remove barriers to forming and joining trade unions; and disaggregated data collected on persons not in employment, education or training.

    Responses by the Delegation

    The delegation said the Government considered regional poverty lines when setting provincial minimum wages. This was a starting wage, and the Government was supporting workers to receive higher wages.

    The State party had created a Department of Migrant Workers, which protected the rights of national migrant workers overseas. The Department was forming bilateral agreements with other countries to protect migrant workers from abuse. Several thousands of workers had been repatriated during the pandemic, many of whom had received assistance. Their children were provided with scholarships.

    Collecting data on persons not in employment, education or training was a goal of the Philippine Development Plan. There were special employment programmes for students and alternative learning systems in place to reduce the number of such persons.

    The State party had intensified efforts to identify and prevent child labour. More than 50,000 child labourers had been provided with necessary services and more than 30,000 child labourers had been removed from labour.

    The Philippines had several thousands of trade unions and workers’ associations with over four million members in total. The State engaged in dialogue with the International Labour Organization regarding incidents in which workers were killed or disappeared, and had adopted measures to prevent such incidents in the future. A committee had been formed to investigate these cases, and investigations into several cases had been concluded.

    In 2023, the State party had inspected more than 400,000 establishments to ensure they complied with health and safety standards.

    Questions by a Committee Expert

    LUDOVIC HENNEBEL, Committee Vice-Chair and Member of the Taskforce for the Philippines , asked about progress made in implementing recommendations from other treaty bodies on polygamy. What measures were in place to reform divorce procedures? 

    Had the State party received complaints regarding the violation of children’s rights during conflict or on the recruitment and use of children in armed conflict? What sanctions were imposed for persons who forced children to work? How was the State party preventing sexual and online exploitation of children, and supporting birth registration for children from indigenous and Muslim communities? What measures were in place to protect victims of rape and to repeal laws allowing perpetrators to avoid punishment by marrying victims?

    How did the State party promote equal access to civil unions for members of the lesbian, gay, bisexual, transgender and intersex community and protect the bodily integrity of intersex persons?

    How were people in the informal sector supported to access housing? What measures were in place to prevent evictions? How did the State party promote access to health for vulnerable groups, to mental health care in rural areas, and to emergency contraception and post-abortion care? How did it promote education on sexual and reproductive health for rural and young people?

    Was the State party planning to decriminalise drugs for personal use and implement alternatives to imprisonment for drug users? What protection was in place to prevent stigmatisation and criminalisation of persons receiving treatment for drug addiction? What measures were in place to put an end to the “war on drugs” and to provide reparations to victims of the war?

    Responses by the Delegation

    The delegation said the Philippines recognised several types of contractual employment, including for work performed outside the employer’s facilities and independent contractors. These workers were able to file complaints with the Government in cases of violations of labour rights.

    A law on agrarian emancipation had freed 6,000 farmers from debt. The State was also implementing agricultural support programmes. The area under the Verde Island Passage would be declared as a protected area, and the State would allocate resources to protecting the area. The State’s Blue Economy Bill would mandate policies for managing marine and coastal resources. The State party had also enacted a law on seafarers’ rights.

    The natural disaster risk reduction and management act regulated support for persons displaced by natural disasters. Such persons could access State-funded shelters. The Government continued to provide support to persons displaced by the 2017 Marawi siege. The Marawi Compensation Board ensured tax-free compensation for housing and property lost during the siege. The State also provided livelihoods, healthcare and educational support for victims.

    The Executive Branch had been advocating for a law on freedom of information, which would be passed soon. A freedom of information programme had been established to grant public access to official, non-confidential documents of public concern. A witness protection programme was also in place. The Anti-Red Tape Authority promoted transparency in Government operations, while the Ombudsman acted on confidential complaints of corruption. Punitive actions for corruption offences were severe.

    In State law, polygamy was illegal, and bigamy was a criminal offence. However, Muslim men with financial ability and their wives’ permission could marry multiple wives under traditional law, which also mandated divorces.

    The Philippines advocated for the protection of children in armed conflict. It had ratified the Optional Protocol to the Convention on the Rights of the Child on the involvement of children in armed conflict. Members of the Armed Forces under the age of 18 did not take part in combat. When violations occurred, investigations were carried out. However, the New People’s Army continued to recruit children. There were over 500 documented cases of this terrorist group’s use of children. The Government continued to exert efforts to ensure that schools were not used to exploit children.

    The State was strengthening efforts to address adolescent pregnancy through the implementation of comprehensive sexuality education and referral networks to reproductive health facilities. Over 100 schools were implementing the education programme, and over 1.1 million leaners had participated. Behavioural change materials had also been developed for schools and health facilities.

    The Philippines remained a prime target for online sexual abuse of children. Legislation had been implemented in 2022 to penalise all forms of online abuse of children. State agencies were cooperating to identify perpetrators.

    The Government was collecting data on malnutrition and stunting. Stunting in children under five had decreased from 33 per cent in 2018 to 23 per cent in 2024.

    Housing had been declared as a national concern by the current Government. The national housing programme had provided an average of 35,000 social housing units per year in recent years. Around 75,000 housing units had been provided to persons living in areas vulnerable to natural disasters and to indigenous peoples.

    The Government was adopting a humanitarian approach to drug use and rehabilitation. The drug clearing project sought to take away drugs from the people and discourage people from using drugs. Rehabilitation support was provided to drug users. Over 60 per cent of regions had been declared “drug cleared”, and over 40 per cent “drug-free”.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on the passage of the extrajudicial killing bill and its relationship with the State drug policy; whether police were prohibited from reporting drug-related deaths to the media; whether detentions of drug users were voluntary; how the State supported people with drug-use records, who were criminalised, to access the work market; issues with the coverage of social security and nutrition programmes; measures to expedite agrarian reform to address high levels of poverty among farmers; measures to protect small-scale fishers from large-scale fishing businesses; indicators to assess multi-dimensional poverty and inform policies to tackle poverty; measures to support and protect the children of overseas workers from domestic abuse; how the energy market was regulated to make access to energy affordable; the impact of the prohibition of abortion on maternal mortality rates and measures implemented to respond to treaty bodies’ recommendations on increasing access to pre- and post-natal care services; and measures to legalise abortion in cases where there was risk to the health of the mother.

    Responses by the Delegation

    The delegation said there were several programmes supporting children in their first 1,000 days of life, including conditional cash transfers. Health workers were provided with training on caring for newborns and there were pre- and post-natal care programmes in place.

    The Philippines was an early adopter of a multidimensional poverty index, which helped to identify areas in which increased support was needed. A community-based monitoring system had been set up to collect data on multidimensional poverty.

    The State party had observed that for families with mothers who migrated overseas, grandparents typically cared for children and family circles also provided support. The Government had instructed teachers on identifying evidence of domestic abuse. Migrant workers were required to develop financial plans before leaving the country. The reintegration programme was being strengthened to help returning migrant workers.

    The State had reached 100 per cent electrification of rural regions, and was now working to address pockets of households that did not have electricity, supporting their access to renewable energy.

    Maternal deaths had been steadily decreasing in recent years. The Government was continuing to strengthen maternal and newborn care programmes, including by upskilling birthing nurses and reducing unsafe abortions.

    The State party prevented commercial fishers from fishing in waters reserved for municipal fishers and spawning grounds. The Clean and Healthy Oceans Programme aimed to reduce illegal and unregulated fishing by improving compliance with regulations. Programmes were in place to develop aquatic parks to support small-scale fishers, who could also access support for livelihoods and fishing tools.

    Questions by a Committee Expert

    LAURA-MARIA CRACIUNEAN-TATU, Committee Chair and Member of the Taskforce for the Philippines , commended the State party on the constant increase in the budget allocated to education, which had reached 3.2 per cent of gross domestic product. However, this was well below the United Nations’ recommendation of at least four per cent of gross domestic product. Were there further plans to increase the education budget? The Philippines’ global ranking in terms of quality of education was in the bottom 25 of 172 nations, the lowest score in Asia. What measures were envisioned to increase access to quality education for all?

    The State party had put in place a five-year development plan for children with disabilities, which ended in 2019. What results were achieved by the plan and what measures were in place to address limited access to education for children with disabilities and indigenous children? In one region, 56 per cent of children were not attending school. What measures were in place to address this issue? What measures were in place to address the impact of COVID-19 lockdowns on access to education? How was the national policy framework on schools as zones for peace implemented? Legislation had been implemented that discontinued mother tongue education for minority groups. What was the rationale behind the adoption of this law?

    There was increasing disparity in access to the internet across different regions. What measures were in place to improve access to the internet for poor households and regions?

    Responses by the Delegation 

    The delegation said that the Constitution mandated that education needed to be given priority in the budget. Overall spending on education amounted for around 5.5 per cent of gross domestic product. The State party had made kindergarten education compulsory and extended compulsory education by two years, and the curriculum had been revised recently to improve education quality. The Government was working to address the inadequate supply of textbooks and computers in schools through decentralisation. The Philippines had over 100 languages and it was difficult to develop learning materials in each of these languages. The State thus decided to discontinue mother tongue language instruction and standardise English as a medium of instruction from grade five.

    The State party was also working to address the impact of the COVID-19 pandemic on learning outcomes. Recently, legislation had been passed on remedial education. During the pandemic, the Government adopted learning continuity plans to support access to education through online and broadcast education.

    The Government had implemented many measures to manage culturally sensitive education in Muslim and indigenous communities. Education on peace and conflict resolution was being promoted, and the State party was working to repair schools damaged by conflicts. The Government promoted the concept of schools as zones of peace in conflict-affected areas such as Mindanao. Local governments and security forces contributed to protecting schools in peace zones from being used in military activities through measures such as school escorts. The Government continued to provide psychosocial support for children affected by armed conflict.

    The indigenous education programme promoted quality, culturally relevant education for indigenous peoples. It had been implemented in over 3,000 schools. Over 75 indigenous languages were used in instruction, and an additional 4,000 teachers, 95 per cent of whom were indigenous, had recently been hired to provide education to indigenous children.

    The Government was working to improve access to education and healthcare for children with disabilities. Legislation mandating inclusive education for children with disabilities had been adopted and disability support officers had been established in educational institutions.

    The State party had improved the policy and regulatory framework on internet access. The national fibre-optic cable network was being expanded to southern regions. The State party was collaborating with Starlink to allow southern provinces to access the internet via satellites. Telecommunications companies were provided with incentives to operate in the Philippines, and wi-fi access points were being set up in schools and public places.

    The State’s campaign against illegal drugs was now geared towards rehabilitation and reintegration of drug users. The House of Representatives had investigated extrajudicial killings occurring in the context of the war on drugs and the Government had decided to amend the Penal Code to increase penalties for extrajudicial killings.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on how the State party promoted education in Spanish and Arabic; the results of the education programme on Islamic values; how the State party protected the expression of indigenous culture and indigenous cultural sites; whether indigenous leaders participated in creating policies impacting their communities; legal and administrative provisions to protect indigenous languages; the number of legal cases invoking economic, social and cultural rights in which reparations had been granted for violations; the role of the Commission of Human Rights in investigating complaints from workers and places of detention; how the State party would protect fishing zones for small-scale fishers; measures for reducing threats and attacks against human rights defenders; plans to decriminalise abortion; and measures to protect the lesbian, gay, bisexual, transgender and intersex community.

    Responses by the Delegation

    The delegation said there were schools in Mindanao that provided Arabic and Islamic education. Education in Spanish and Arabic was an option in mainstream schools. Four-year courses on Arabic teaching were provided in local universities.

    There was no legal framework on cultural misappropriation, but the Government was working to protect intellectual property rights by registering the cultural assets and expressions of indigenous peoples. Indigenous communities needed to be consulted regarding all projects and policies affecting them. Indigenous leaders were included in local development councils.

    Courts had cited the Covenant in decisions upholding standards of living and access to economic, social and cultural rights, including in cases in which remedies were granted for environmental harm caused by mining operations. There needed to be a new Charter governing the mandate of the Commission on Human Rights, which had traditionally focused on civil and political rights but was recently working to promote economic, social and cultural rights.

    Court cases were underway into violations of regulations on fishing zones by commercial fishers. The Government protected the rights of legitimate environmental defenders. Protection of the environment was included as a pillar of the national security policy.

    The State party had pivoted to a community-based approach to illegal drugs. Many drug users were treated in communities rather than in rehabilitation centres. Persons who participated in rehabilitation programmes were removed from criminal offender lists, but not drug user lists.

    The State party had not yet developed a comprehensive bill on the rights of internally displaced persons. Persons affected by the Marawi siege had been provided with access to water and electricity, and reconstruction efforts were ongoing in affected areas.

    The State had created a committee on lesbian, gay, bisexual, transgender and intersex affairs, which was developing policies and programmes to promote equality and inclusion of the community. The Constitution and various State legislation prohibited discrimination based on sexual orientation and gender identity. The police had formulated a gender sensitivity programme to ensure protection of this community.

    Pre-natal checkups were provided free of charge in primary health facilities, and mobile clinics provided maternal health services in isolated areas. The Government, while maintaining the prohibition of abortion, had taken measures to ensure quality post-abortion care was provided without stigmatisation.

    Closing Remarks

    ASRAF ALLY CAUNHYE, Committee Expert and Country Rapporteur for the Philippines , said the dialogue had been fruitful and constructive, addressing a range of issues confronting the Philippines. Discussions had brought to light issues that needed to be addressed to strengthen the implementation of economic, social and cultural rights, and would inform the Committee’s concluding observations. Mr. Caunhye expressed thanks to all persons who had contributed to the dialogue.

    ROSEMARIE G. EDILLON, Undersecretary, Policy and Planning Group, National Economic and Development Authority of the Philippines and head of the delegation, thanked the Committee for the dialogue. The State party was united in its goal of advancing economic, social and cultural rights. The President had a clear vision for national development that focused on improving access to all economic, social and cultural rights. The State party would continue with actions that would create change and realise the economic, social and cultural rights of all citizens.

    LAURA-MARIA CRACIUNEAN-TATU, Committee Chair , thanked the delegation for participating in the dialogue and for providing comprehensive answers. In some instances, additional data would have been appreciated. Human rights mechanisms were not mutually exclusive; they all served to enhance protections of rights holders. The Committee thanked civil society organizations for submitting information to the Committee and called for further cooperation between civil society and the Government.

    __________

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CESCR25.006E

    MIL OSI United Nations News

  • MIL-OSI United Nations: New UN Mediator for Libya — Tenth in 14 Years — Must Avoid Past Failures, Delegate Warns Security Council

    Source: United Nations General Assembly and Security Council

    UN Political Chief Says Libyans’ Dream Unfulfilled after February Revolution 14 Years Ago

    Libya’s leaders and security actors are prioritizing political and personal gain over national interests, the United Nations’ top political official told the Security Council today, as the country’s delegate blamed proxy wars for its instability.

    Fourteen years on since the 17 February 2011 Revolution in Libya, “the dream of a civil, democratic and prosperous Libya remains unfulfilled” due to “entrenched divisions, economic mismanagement, continued human rights violations and competing domestic and external interests”, said Rosemary DiCarlo, Under-Secretary-General for Political and Peacebuilding Affairs.  Highlighting efforts by the United Nations Support Mission in Libya (UNSMIL) to revive the political process, she noted the establishment of an Advisory Committee comprising legal and constitutional experts to provide proposals supporting efforts towards holding national elections.

    Pointing to the lack of progress on a unified budget or an agreed spending framework, as well as disagreement over the leadership of the Libyan Audit Bureau, she said it is critical to support the Central Bank’s efforts to stabilize the financial situation.  The dispute over the position of President of the High Council of State remains unresolved.  “Politicization and political divisions are also hindering progress on national reconciliation,” she said, noting that amendments to a draft law on that topic have raised concerns over the independence of a future National Reconciliation Commission.

    Following successful local elections in 56 municipalities in November 2024, the High National Elections Commission is preparing for the next 63 elections.  “Funding from the Government is crucial to enable the High National Elections Commission to implement this next phase of municipal council elections,” she stressed.  On the security front, the activities of non-State and quasi-State armed actors continue to pose a threat to Libya’s fragile stability, she said, noting that the 2020 Ceasefire Agreement has only been partially implemented.

    She also expressed concern about the continuing trend of arbitrary arrests and enforced disappearances across Libya.  Drawing attention to “the alarming and tragic discovery of mass graves” earlier this month in north-east and south-east Libya, she said:  “This is yet another reminder of the urgent need to protect migrants and combat human trafficking.”  Calling for support to the 2025 Libyan chapter of the Sudan Refugee Regional Response Plan, which requires $106 million, she urged Council members to support the newly appointed Special Representative Hanna Tetteh, who will be taking up her functions in Tripoli on 20 February.

    In December 2024, a senior UN official announced a new UN-mediated process aimed at breaking the political deadlock — marked by the presence of rival Governments — and facilitating elections.  (See Press Release SC/15938.)

    Libya Battleground for Proxy Wars

    Libya’s delegate, who spoke at the end of today’s meeting, pointed out that Ms. Tetteh will be the tenth Special Representative of the Secretary-General assigned to his country in 14 years, calling this “a record”.  The Council must reflect on whether this indicates a “problem” with the imposition of solutions, UN mechanisms or the officials themselves.  He added:  “We hope that she will harness the lessons from the past and will not repeat the same misgivings by trying the same things and expecting different results.”  He also raised several concerns about the Advisory Committee established by UNSMIL, including whether it was expected to put forward a single proposal or numerous proposals, and how exactly political stakeholders would contribute to this process.

    “My country has become a ground for the settlement of disputes” in proxy wars, he said, adding that it is influenced by instability in the region, including “political and security-based changes”.  However, he pointed out, the recent holding of municipal elections around the country is a good example of Libya’s ability to ensure electoral processes where there is support and political will.  Any reconciliation must be based “on transitional justice, on accountability, on truth and on redress and compensation”, he stressed, while reiterating a request for the removal of individuals on the Sanctions List for humanitarian reasons or if their “listing was erroneous, or because their file was used to further political friction”.

    Many Council members welcomed the establishment of the Advisory Committee and the appointment of the new Special Representative as positive steps towards relaunching the political process.

    The representative of the United States said Ms. Tetteh’s prior experience in Sudan and South Sudan can inform her approach in Libya.  A political solution is the path to long-term stability, and time is of the essence, she said, noting “destabilizing activities from external actors” and the need for “east-west security integration”. Recalling the visit of a delegation from her country to Libya, she urged all parties to reach agreement on a unified budget to end persistent conflicts over revenue-sharing.

    The Russian Federation’s delegate expressed hope that the new Special Representative will adopt an impartial approach, informed by a sober assessment of the political climate.  Ms. Tetteh will have the difficult task of redressing imbalance and revitalizing UN mediation efforts, he said.  This month marks the fourteenth anniversary since the “egregious Western intervention and the virtual destruction of Libyan Statehood”, he observed, adding:  “The collapse of the country took place and is ongoing to this date.”

    Updating Sanctions Regime

    The United Kingdom’s delegate welcomed the recent adoption of new designation criteria for the UN sanctions regime to hold those exploiting Libyan crude oil and petroleum accountable and help to safeguard its resources.  “Until a unifying political agreement is achieved in Libya, it will be impossible to unlock its great potential,” she added.  (See Press Release SC/15967.)  Along similar lines, France’s delegate said:  “Libyan money needs to benefit the Libyan people”, adding that a unified budget and a unified Government go hand in hand.  Such a Government, capable of organizing presidential and legislative elections as soon as possible, is crucial.

    “Good-faith engagement and demonstrating compromise” will be essential in overcoming all outstanding, contentious issues, Slovenia’s speaker advised, adding that the political process must include Libyans from all walks of life, with women and young people.  Denmark’s delegate added:  “No woman should fear reprisals as a consequence of political engagement — neither online, nor offline.”  Further, organizations promoting women’s rights should be able to operate freely.

    The representative of Panama acknowledged the enormous political challenges in Libya, where “the crisis has fragmented the social fabric and institutions in the country”, as he expressed support for efforts to hold elections representing different factions of Libyan society.  Greece’s delegate pointed out that stability in Libya remains key for the region, and even more so for immediate neighbours like his own country which are impacted by the significant increase of irregular migration flows.

    Communications between East-West Security Institutions

    On security, the representative of Pakistan highlighted the reported agreement between Eastern and Western security institutions to establish a joint centre for communication and information exchange.  Noting that these are preliminary steps, he added:  “This will need a well-defined comprehensive peacebuilding and reconciliation strategy”.  Also welcoming the establishment of the joint centre for border security, the representative of the Republic of Korea noted that efforts to unify military institutions will be essential for strengthening Libya’s security.  Calling on “foreign Powers” to refrain from providing arms to Tripoli “for their narrow geopolitical interests”, he said that those weapons destabilize the broader region and bolster terrorism.

    Several speakers echoed the need to avoid external interference and respect the leadership of the Libyan people.  The representative of Guyana, also speaking for Algeria, Sierra Leone and Somalia, said the Advisory Committee’s proposals are meant to foster further consultations between UNSMIL and the relevant Libyan decision makers and stakeholders.  She called for “careful attention to how this work is undertaken, so that it “avoids creating any additional challenges”.  She also expressed concern about the lack of progress in convening national elections.

    The representative of China, Council President for February, speaking in his national capacity, stressed the need to avoid undue external interference, while Libya is on the path to elections and national reconciliation.  UNSMIL must strengthen its communication with Libyan parties and put forward practical proposals, he said, hoping that the Special Representative will advance the political process.  The Mission should monitor the ceasefire, he said, noting that improving the security situation and fighting the crime trajectory are imperative.

    MIL OSI United Nations News

  • MIL-OSI Security: Sacramento County Man Sentenced to 33 Months in Prison for Fraud in Connection with Medical Device Sales

    Source: Office of United States Attorneys

    SACRAMENTO, Calif. — Michael Andrew Scott, 38, of Fair Oaks, was sentenced Tuesday by Senior U.S. District Judge Kimberly J. Mueller to 33 months in prison for fraud in connection with a medical device sales scheme, Acting U.S. Attorney Michele Beckwith announced. In addition, Scott was ordered to pay $376,044 in restitution to his victims.

    According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from health care providers for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk.

    In reality, Scott’s representations to these prospective investors were false because Scott did not have purchase orders from health care providers. To some of his victims, Scott sent purchase orders that he had doctored or fabricated in order to convince them to lend money. The health care providers listed on these purported purchase orders confirmed that the orders were fake altogether or altered to reflect inflated amounts or other false information. Trusted Medical Partnership was not a legitimate business — while incorporated in the State of California, it conducted no legitimate business transactions, paid no taxes, submitted no wage or employment-related records, and was suspended in December 2021 before Scott solicited investments on its behalf from some of his victims.

    Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, but received little to no returns on their investments. Instead, Scott spent the money on gambling at several local casinos (sometimes the same day he received the victims’ money), personal expenses, or payments to other, prior investors in order to keep the scheme running. Collectively, Scott defrauded at least 16 victims of almost $470,000.

    This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma prosecuted the case.

    MIL Security OSI

  • MIL-OSI Security: Floridian Sentenced for Role in Money Laundering Operation

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A resident of Ocala, Florida, has been sentenced to time served, to be followed by three years of supervised release, on his conviction for money laundering conspiracy, Acting United States Attorney Troy Rivetti announced today.

    Senior United States District Judge Nora Barry Fischer imposed the sentence on Charles Wilson Stout, 66, who had served approximately six months of imprisonment for his crime.

    According to information presented to the Court, Stout engaged in a money laundering conspiracy from in and around April 2022 until in and around June 2022. The Court was advised that a Washington, D.C.-based university was the victim of a business email compromise that resulted in the fraudulent transfer of more than $603,000 from a bank account located in the Western District of Pennsylvania into a separate bank account owned by Stout.

    To obfuscate the source of the fraudulent funds, Stout and his co-defendant, David Kakra Mensah, created a shell company and transferred portions of the fraudulently obtained proceeds into a cryptocurrency account that Mensah owned. In addition to participating in the business e-mail compromise, Mensah was also involved in a romance fraud scheme in which he obtained and moved money through individual victims living in Pennsylvania, Oregon, and elsewhere. Mensah previously pleaded guilty and was sentenced to 24 months of imprisonment.

    Assistant United States Attorneys Mark V. Gurzo and Kelly M. Locher prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Stout.

    MIL Security OSI

  • MIL-OSI Video: Secretary-General Travel, Deputy Secretary-General & other topics – Daily Press Briefing

    Source: United Nations (Video News)

    Noon Briefing by Stéphane Dujarric, Spokesperson for the Secretary-General.

    – Secretary-General Travel
    – Deputy Secretary-General
    – Occupied Palestinian Territory
    – Democratic Republic of the Congo
    – Children in Eastern and Southern Africa
    – Sudan
    – Libya
    – Myanmar
    – Central America
    – Ukraine
    – Guest Tomorrow
    – Financial Contribution

    SECRETARY-GENERAL TRAVEL
    The Secretary-General traveled to Bridgetown, Barbados today where, this evening, he will speak at the opening ceremony of the 48th Regular Meeting of the Conference of the Heads of Government of the Caribbean Community, also known as CARICOM. 
    In his remarks, he is expected to highlight three key areas where, together, we must drive progress – peace and security, the climate crisis and sustainable development.
    Also today, the Secretary-General will hold a bilateral meeting with Prime Minister Mia Mottley of Barbados.
    Tomorrow, the Secretary-General will have a closed session with CARICOM Heads of Government, to exchange views on pressing issues in the region, such as Haiti. 
    He is expected back in New York later tomorrow.

    DEPUTY SECRETARY-GENERAL
    The Deputy Secretary-General, Amina Mohammed, arrived in Johannesburg, South Africa today to attend the G20 Foreign Ministers meeting on behalf of the Secretary-General. Ms. Mohammed will underline support for multilateral cooperation and the South African G20 Presidency and reinforce the case for dialogue and joint action to address common challenges, including trade, tax, debt, and financing climate action. On the margins of the meeting, she is expected to meet with senior government officials from G20 members and guest countries.
    From Johannesburg, Ms. Mohammed will proceed to Nairobi, Kenya, to hold meetings with a wide range of stakeholders and UN entities in preparation of the second UN Food System Summit Stocktaking and to meet with senior government officials.
    On 26 February, Ms. Mohammed will return to South Africa – this time to Cape Town to attend the G20 Finance Ministers and Central Bank Governors Meeting and open the Finance in Common Summit 2025 on behalf of the Secretary-General.
    The Deputy Secretary-General will return to New York on 27 February.

    OCCUPIED PALESTINIAN TERRITORY
    The World Health Organization and UNICEF say that the emergency polio outbreak response in the Gaza Strip is continuing, with a mass vaccination campaign scheduled to begin on Saturday and continue until 26 February. The novel oral polio vaccine type 2 will be administered to more than 591,000 children under 10 years of age to protect them from polio. The campaign aims to reach all children under 10 – including those previously missed – to close immunity gaps and end the outbreak.
    Meanwhile, partners supporting water, sanitation and hygiene services are working to increase the production and distribution of water for drinking and domestic purposes to improve living conditions in the Strip and minimize public health risks.
    There are now more than 1,780 operational water points across Gaza. Over 85 per cent of them are used to support water trucking activities by UN partners. 
    The Office for the Coordination of Humanitarian Affairs reports that UN partners are also training and deploying mobile teams and volunteers at aid distribution points to ensure that vulnerable groups – including people with disabilities – have safe and dignified access to humanitarian assistance. More than 100 such teams are operating at nearly 70 aid distribution points throughout Gaza.
    Turning to the West Bank, OCHA says that Israeli forces’ operations in northern areas continue, causing further destruction and displacement among Palestinian residents.
    Yesterday, in Tulkarm refugee camp, Israeli forces demolished at least five homes, with several others also slated for demolition.

    Full Highlights: https://www.un.org/sg/en/content/ossg/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=19+February+2025

    https://www.youtube.com/watch?v=A0iEq-V8ZyE

    MIL OSI Video

  • MIL-OSI Europe: Written question – Addressing obstacles to the effective cross-border provision of insurance – E-000442/2025

    Source: European Parliament

    Question for written answer  E-000442/2025/rev.1
    to the Commission
    Rule 144
    Luděk Niedermayer (PPE)

    For most personal insurance and some property insurance policies, the Solvency II Directive defines the country where the financial service is provided as the country where the policyholder is habitually resident, which is not the case with other financial services. However, this arrangement has in practice created obstacles to the effective cross-border provision of insurance, compounded by the CJEU judgment in Case C-243/11.

    If the policyholder subsequently changes their habitual residence to another state during the course of the insurance policy, the insurer is compelled to have a tax specialist in the tax law of all EU states in order to be able to function properly in such a dynamic landscape.

    The cross-border provision of insurance is further hampered by the fact that, in states that do not allow choice of jurisdiction and leave only the basic EU rule on determining jurisdiction in force, insurance companies cannot provide an insurance product intended for one state in another state, even on a cross-border basis, without establishing a branch.

    Will the Commission help to address these obstacles to the cross-border provision of insurance:

    • 1.By proposing a uniform system for defining the taxpayer, so that an insurance undertaking which has its registered office or branch in the policyholder’s state of habitual residence would be considered the taxpayer, while in other cases the policyholder would be considered the taxpayer?
    • 2.By proposing an amendment to the current arrangements, so that the choice of applicable jurisdiction would be introduced first in insurance contracts, while the law of the policyholder’s state of habitual residence would only apply in cases where there is no choice of jurisdiction?

    Submitted: 3.2.2025

    Last updated: 19 February 2025

    MIL OSI Europe News