Category: housing

  • MIL-OSI USA: Ernst Continues River to River Tour, Meets with Veterans, Students, Small Business Owners

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    RED OAK, Iowa – This October, U.S. Senator Joni Ernst (R-Iowa) made multiple stops on her annual River to River Tour as part of her ongoing commitment to hear from Iowans in every corner of the state. She recognized outstanding small businesses, hosted town hall meetings, led roundtable discussions, and more.
    Click HERE to download photos from Ernst’s visits.
    The Fort Dodge Messenger highlighted Ernst’s stop in Calhoun County, where she presented her Small Business of the Week award to the family-owned-and-operated excavation business, Hildreth Company, Inc.
    Ernst’s stop at Greene County High School was featured by Raccoon Valley Radio and Greene County News Online. She talked to students about her path from Montgomery County to the United States Senate and answered their questions about working in government.
     
    In Polk County, KCCI attended Ernst’s roundtable with Shopify where she heard firsthand from small business owners and shared more on her work to address the challenges they face.
    Ernst enjoyed a beautiful walking tour in Emmet County to see the City of Estherville’s newly expanded trail system. The visit wascovered by Estherville News.
    The Sigourney News-Review covered Ernst’s Small Business of the Week award presentation in Keokuk County where she honored Barn Wired, a thriving home decor and coffee shop on the town square.
    The Hawkeye spotlighted Ernst’s roundtable with the Burlington Chamber of Commerce at her stop in Des Moines County, where they discussed economic development.
    In Dickinson and Harrison Counties, Ernst hosted town hall meetings to talk about supporting our veterans, passing a new Farm Bill, and securing our border.

    MIL OSI USA News

  • MIL-OSI USA: Boozman Convenes 2024-2025 Arkansas Congressional Youth Cabinet

    US Senate News:

    Source: United States Senator for Arkansas – John Boozman
    LITTLE ROCK, Ark. –– U.S. Senator John Boozman (R-AR) launched the eighth year of his Congressional Youth Cabinet on Tuesday at the Old State House Museum in Little Rock. The meeting brought together 114 high school juniors who were selected from public, private, charter and homeschool students across the state for their involvement and leadership in their communities.
    “The Congressional Youth Cabinet benefits Arkansas students and families as well as their communities by promoting a healthy public policy dialogue and developing the next generation of leaders in our state. I am pleased to welcome this group of bright young people to contribute their ideas and experiences as we explore legislative solutions to the issues that interest them most,” Boozman said. “Their enthusiasm for enhancing their own understanding of civic engagement and helping shape the future of our state and country is inspiring.”

    Senator Boozman and Congressional Youth Cabinet participants in Little Rock.
    The Congressional Youth Cabinet is a non-partisan program that gives students insight and experience with the legislative process. The students will attend meetings throughout the year and work in teams to select and research national issues. In the spring, the students will present their policy recommendations to the senator.
    Click here for more photos from the CYC kick-off.
    The following students were selected to participate in the Congressional Youth Cabinet for the 2024-2025 school year:
    1st Congressional District

    Jack Coleman – Mountain Home
    Mark Gregory Green – Harrison
    Lindsay Dunsing – Alpena
    Luke Wilkins – Batesville
    Penelope Jackson – Melbourne
    Natalie Rodriguez – Cabot
    Ella Curry – Alpena
    Suraya Tennison – Alpena
    Sara Hinson – Bergman
    Kayla Thorndike – Cabot
    Adam Stanisor – Cabot
    Bryce Veasman – Cabot
    Kaitlyn Carmical – Cabot
    Jeremy Jason – Lake City
    Andrew Boots – Jonesboro
    Spencer May – Jonesboro
    Sam Vaught – Wynne

    Christian Boykin – Earle
    Ajiah Parker – Earle
    Aryanna Perry – Earle
    Jada Maples – Earle
    Lucas White – Manila
    Kera Fesperman – Marion
    Penelope Marie Salas – Marion
    Gabrielle Weathers – Lepanto
    Harlynn Robertson – Jonesboro
    Deven Isbell – Jonesboro
    William Crader – Jonesboro
    Bentley McCoy – Clarendon
    Sam Sabbatini – Hazen
    Hailey Nichols – Wynne
    Derek Lately Jr. – Earle
    Zavion Maples – Earle
    Kialynn Mitchell – Earle

    2nd Congressional District

    Claira Tittle – Searcy
    Landon Hillman – Jacksonville
    Eva Harrell – Maumelle
    Yusuf Taha Guven – Little Rock
    Jayden Branch – Jacksonville
    Garrett Fisher – Greenbrier
    Fatimah Jabbar – North Little Rock
    Zachary Tancinco – Searcy
    Canadee Mosley – Conway
    Jil Patel – Jacksonville

    Luis Denilso Calderon – Little Rock
    Katharine Wekly – Conway
    Savannah Shelley – Little Rock
    Gregory Lin – Searcy
    Grabiela Valadez-Rizo – Little Rock
    Lisandro Isai Salas – Little Rock
    Ashlynn Pecanty – Maumelle
    Damian Morales – Little Rock
    David Salinas – Bryant
    Ethan Bolton – Jacksonville
    Sophie Swiney – Bradford

    3rd Congressional District

    Schuyler Henehan – Fort Smith
    Robinson Skaggs – Bentonville
    Cole Kessman – Fayetteville
    Kyndall Richey – Bentonville
    Manvitha Narasimhan – Bentonville
    Evalyn Clark – Bentonville
    Lily Cate Caldwell – Bentonville
    Matthew Velasquez-Amaya – Fort Smith
    Preston Thai – Bentonville
    Khant Sin – Fayetteville
    Evangelina Hernandez – Fort Smith
    Grayson Proctor – Lavaca
    Adrian Gonzalez – Lavaca
    Sydney Turner – Fayetteville
    Lydia Parsley – Springdale
    Terri Michelle Turner – Fort Smith
    Alee Thongprachanh – Fort Smith
    Colt Hood – Greenland

    Caroline Sanders – Bentonville
    Sullivan Shepard – Rogers
    Oakley Allen – Fort Smith
    Weston Arnett – Greenwood
    Jadyn Patterson – Bentonville
    Saqib Memon – Fayetteville
    Sarah Amor – Fort Smith
    Clara Hibbard – Mountainburg
    Drake Norris – Fort Smith
    Madelyn Maxey – Fort Smith
    Aubree Stewart – Springdale
    Aneeka Srivastava – Bentonville
    Nidhi Nair – Bentonville
    Grace Dickinson – Tontitown
    Tatum Grace Loe – Fort Smith
    Nathan Barney – Bentonville
    Jude Alfaouri – Fayetteville
    Claire Hassler – Fort Smith
    Hannah Elliott – Greenwood

    4th Congressional District

    Dana Liu – Russellville
    Ian Warnick – Russellville
    Peyton Gustave Blasé – Ozark
    David Culver – Ozark
    Sydnie Herriage – Ozark
    Elizabeth Harrison – Russellville
    Mallory Cloud – Russellville
    Audrey Rogers – Russellville
    Tristan Marrufo – DeQueen
    Kyle Williamson – DeQueen
    Miley Byler – DeQueen

    Isabel Rivas – Russellville
    Hannah Grace Skinner – Texarkana
    Christian Hunter – Arkadelphia
    Yasmine Sakr – Hot Springs
    Mary Lopez-Furlong – Hot Springs
    Tucker Arnold – Hot Springs
    Heather Atchley – Sheridan
    Madilynn Stuffle – Hot Springs
    Alexandria Evans – White Hall
    Blake Levi Jimerson – Sheridan
    Carson Brody Lyons – Sheridan

    MIL OSI USA News

  • MIL-OSI United Nations: Experts of the Committee against Torture Welcome Namibia’s Commitment to the Mandela and Bangkok Rules, Ask about Harmful Traditional Practices and Lengthy Pretrial Detention Periods

    Source: United Nations – Geneva

    The Committee against Torture today concluded its consideration of the third periodic report of Namibia, with Committee Experts welcoming the State’s commitment to the Nelson Mandela and Bangkok Rules, international norms on the treatment of prisoners, and raising questions about harmful traditional practices and lengthy pretrial detention periods.

    Erdogan Iscan, Country Rapporteur and Committee Expert, welcomed the commitment of the State party to complying with the Nelson Mandela Rules and the Bangkok Rules.

    Mr. Iscan raised the issue of traditional practices that were harmful to women and girls, including the ritual of Olufuko, which involved child marriage and sexual initiation rites.  Had the State party made progress in terms of awareness-raising as well as eliminating such practices?  What further steps had been taken to prevent and criminalise the practice of forced sterilisation?

    Jorge Contesse, Country Rapporteur and Committee Expert, said pretrial detention seemed to routinely exceed legal limits, with above 50 per cent of the prison population awaiting trial.  The low usage of alternatives to detention and an unaffordable bail system seemed to be contributing to the large backlog of cases of pretrial detainees.  What measures had been adopted to address these challenges?

    Introducing the report, Yvonne Dausab, Minister of Justice of Namibia and head of the delegation, said the Namibian correctional service included human rights instruments, including the Nelson Mandela Rules, in the curriculum at its Training College.  The service had undertaken measures to renovate all the country’s correctional facilities with the aim of improving the living conditions of offenders.

    Ms. Dausab said the Government continued to conduct awareness campaigns targeting traditional and religious leaders on positive gender roles and the elimination of harmful cultural practices.  The Childcare and Protection Act 2015 had measures to protect children from harmful cultural and religious practices, strictly prohibiting child marriage in all setups.

    The delegation said Olufuko had taken on a more cultural image and profile, as opposed to a platform for sexual initiation and child marriage.  That may have been the case in the past, but this had changed over the past 10 to 15 years.  Namibia had taken steps to ensure that acts of enforced sterilisation of individuals were not carried out.

    Pretrial detention could run for any time between six to 12 months, the delegation said, and courts could decide to withdraw charges before the six-month period based on available evidence.  The State party was working to strengthen community courts and establish small claims courts to address overcrowding in prisons and holding cells. Since the report was sent, there had also been parole releases and the President had pardoned some persons.

    In closing remarks, Claude Heller, Committee Chair, said that the Committee understood that the political context in Namibia was difficult.  The Committee would make efforts to provide the State party with relevant and achievable recommendations within its concluding observations.  The Committee was interested in maintaining an open dialogue with the State party through its follow-up mechanism.

    In her concluding remarks, Ms. Dausab said Namibia was committed to addressing all forms of torture and other cruel, inhuman or degrading treatment.  More needed to be done to prevent torture, including the enactment of specific legislation criminalising it.  The Committee’s recommendations would help to enhance mechanisms to prevent torture.

    The delegation of Namibia consisted of representatives from the Ministry of Justice; Ministry of Home Affairs, Immigration, Safety and Security; Namibia Correctional Service; and the Permanent Mission of Namibia to the United Nations Office at Geneva.

    The Committee will issue concluding observations on the report of Namibia at the end of its eighty-first session on 22 November.  Those, and other documents relating to the Committee’s work, including reports submitted by States parties, will be available on the session’s webpage.  Summaries of the public meetings of the Committee can be found here, and webcasts of the public meetings can be found here.

    The Committee will next meet in public on Tuesday, 5 November at 10 a.m. to begin its examination of the second periodic report of Thailand (CAT/C/THA/2).

    Report

    The Committee has before it the third periodic report of Namibia (CAT/C/NAM/3).

    Presentation of Report

    YVONNE DAUSAB, Minister of Justice of Namibia and head of the delegation, said

    Namibia had suffered a great loss at the beginning of the year when the third President, Dr. Hage Gottfried Geingob, a strong champion of human rights, passed away on 4 February 2024.  He was greatly missed.  Additionally, Namibia was currently going through a devastating drought which had impacted food security and economic development; the Government was navigating this climate-related crisis with the assistance of developmental partners. Namibia offered a sincere apology for the non-submission of the written responses to the list of issues.

    The torture bill remained under consideration following deliberations in the National Assembly.  The Convention was directly applicable and enforceable in Namibia without the ‘domestic’ legislation.  Article 144 had been used by Namibian courts which had cited United Nations Conventions in their judgments, making their provisions applicable directly in Namibia. The Namibian Constitution prohibited torture as well cruel, inhuman or degrading treatment or punishment, and the Criminal Procedure Act of 1977 criminalised murder as well as assault, including assault with intent to cause grievous bodily harm. 

    Members of the police force, correctional service and defence force accused of using excessive force were investigated under internal complaints units and those found to have acted outside the scope of what was reasonable in the circumstances were subjected to prosecution.  The Government had also been ordered to pay damages to complainants and their families in civil matters brought due to allegations of assault or use of excessive force by law enforcement officers. 

    The Namibian Constitution prohibited arbitrary arrest or detention and required that an arrested person be brought before a court within 48 hours after the arrest.  All police officials were trained and required to inform an accused person upon arrest of their rights, reasons for their arrest, and charges against them.  The Directorate of Legal Aid within the Ministry of Justice had appointed 69 in-house lawyers across the country to represent members of society who could not afford legal representation. 

    The Government had enhanced the independence of the Ombudsman by reforming the current Ombudsman Act 1990 to make provision for the Ombudsman’s Office to be established as a separate agency in the public service, with its own budget and accounting officer.  The Office of the Ombudsman had launched a training manual against torture for law enforcement agencies, and visited and inspected places of detention, police holding cells, and correctional facilities to monitor human rights compliance.

    Namibia continued to be marred by incidents of gender-based and sexual violence, including online child sexual exploitation.  The Government had developed a national plan of action on gender-based violence 2019-2023 to address the root causes and provide a well-coordinated approach to the prevention, response, monitoring and evaluation of gender-based violence initiatives.  Additionally, Namibia had established special courts for gender-based violence offences country-wide to provide a victim-friendly environment. 

    The Government continued to conduct awareness campaigns targeting traditional and religious leaders on positive gender roles and the elimination of harmful cultural practices.  Namibia had developed and implemented a national plan of action to address violence against children.  The Childcare and Protection Act 2015 had measures to protect children from harmful cultural and religious practices, strictly prohibiting child marriage in all setups. 

    The Ombudsman had been instrumental in ensuring that the Namibian police force was adequately trained on the ‘prevention of torture training manual for police officers.’ The Namibian police force also conducted ongoing workshops to train police officers on human rights.  The Namibian correctional service included human rights instruments in its curriculum, including the Nelson Mandela Rules, at the Namibian Correctional Service Training College.  The service had undertaken measures to renovate all of the country’s correctional facilities with the aim of improving the living conditions of offenders.  The implementation of the Namibian correctional service’s health policy had brought about significant changes in managing communicable diseases such as tuberculosis, HIV and hepatitis, as well as mental health support. 

    All asylum seekers went through a refugee status determination process and those who met the criteria were granted refugee status.  If an application for refugee status was unsuccessful, the applicant was advised they could appeal the decision to the Namibian Refugee Appeal Board. Namibia was implementing the national action plan on statelessness, and a national committee had been established. The review of the legislative framework, which was a key milestone, had begun. 

    The Police Act allowed police officials to be investigated for misconduct and human right violations, inclusive of torture.  Officials found guilty of acting outside the scope of their duties were subject to laid down procedures, including arraignment before a competent court. In Namibia, the State was represented by the Prosecutor General in criminal cases; therefore, the prosecution of all allegations of torture lay with the State.  Ms. Dausab concluded by stating that the Namibian Government remained committed to protecting and promoting human rights in the country. 

    Questions by Committee Experts 

    ERDOGAN ISCAN, Committee Expert and Rapporteur, said the Committee expressed its condolences for the death of Namibia’s third President earlier this year.  The State party did not reply to the list of issues adopted by the Committee and chose to submit a report in May 2021 under the traditional reporting procedure.

    The dialogue with the State party would be conducted against this background.

    Mr. Iscan called on Namibia to continue to support the treaty body system. 

    Had measures been taken to improve prison conditions in conformity with the Nelson Mandela Rules? Research indicated that the total prison population was close to 9,000 inmates, of which 54 per cent were pretrial detainees in police custody.  Occupancy level in the prison system was 75 per cent.  Could the Committee be updated on the current situation?  Could details be provided about the health policy and practice developed by the Namibian correctional service? 

    How many individuals were currently in pretrial detention?  What was the average length of pretrial detention and steps taken to reduce its use?  Could statistical data be provided on deaths in custody; investigations carried out into these deaths; and the number of police or prison staff who had been subjected to criminal or disciplinary punishment in cases involving death in custody? Had there been cases of inter-prisoner violence, and what had been measures implemented in such incidents?

    The Committee noted that corporal punishment was prohibited in schools by the Basic Education Act of 2020, but it still lacked an explicit prohibition in the home. What was the current status of the Correctional Service Act 2012 with respect to explicitly prohibiting corporal punishment following the Supreme Court’s judgment of 5 April 1991?  What steps were being taken to totally prohibit corporal punishment in all settings and develop campaigns for awareness raising?

    Could data on all complaints received by the Ombudsman and the number of complaints received by the Internal Investigation Directorate be provided?  How many of these complaints were investigated and how many resulted in disciplinary sanctions?  Had the perpetrators been punished with appropriate penalties commensurate with the gravity of the crime?  How many complaints had been received concerning sexual abuse and the exploitation of refugees by public officials or non-governmental workers at the Osire refugee camp?  Had these complaints been investigated and prosecuted and had victims obtained redress? 

    The Caprivi high treason trial ended in September 2015 and the Committee noted that about 30 persons were found guilty and sentenced to various imprisonment terms; 79 persons were found not guilty and released from custody.  Could

    information on investigations into or prosecutions of members of the Namibian police force regarding alleged acts of torture of suspected participants in the secession attempt in the Caprivi region in 1999 be provided?  What steps had been taken by the authorities to investigate reports of enforced disappearances in the context of the liberation struggle, including the disappearance of former members of the Southwest Africa People’s Organization?  Had alleged victims and their families obtained redress?

    Was the legislation on excessive use of force compatible with the Convention, as well as the basic principles on the use of force and firearms by law enforcement officials?  Were the reports of excessive use of force by law enforcement officers investigated promptly, effectively and impartially?  Were the perpetrators prosecuted and, if convicted, punished with commensurate penalties?  Were victims of violations remedied adequately?  The Committee had received allegations that members of the police force detained and sexually abused sex workers.  What was the State party’s response to these reports? 

    The Committee took note of the Joint Communication by a group of Special Procedure mandate holders, who examined the document which evaluated the “Joint Declaration by the Federal Republic of Germany and the Republic of Namibia: United in remembrance of our colonial past, united in our will to reconcile, united in our vision of the future”, dated June 2021, and developed observations in connection with international human rights law.  It was understood that follow-up negotiations were ongoing between Namibia and Germany.

    With respect to traditional practices that were harmful to women and girls, including the ritual of Olufuko, which involved child marriage and sexual initiation rites, had the State party made progress in terms of awareness-raising as well as eliminating such practices?  What further steps had been taken to prevent and criminalise the practice of forced sterilisation?  What measures were in place to ensure that all acts of violence that targeted persons on the basis of their sexual orientation or gender identity were properly and promptly investigated and prosecuted? 

    It was reported that the Supreme Court issued a ruling last year recognising the right of spouses of Namibian citizens to regularise their immigration status based on same-sex marriages.  Later, parliament passed legislation banning same-sex marriages.  If enacted, it could nullify the Supreme Court ruling.  What was the current status of this legislation? The Committee had received information that the High Court issued a decision on 21 June 2024, which declared the common law offences of sodomy and unnatural sexual offences unconstitutional. It seemed that the State party continued to criminalise same-sex relationships and the Government had lodged an appeal against this decision which was currently pending before the Supreme Court.  What was the current situation? 

    Could the State party clarify its policy, legislation and practice with respect to prisons, hospitals, schools and institutions that engaged in the care of children, older persons or persons with disabilities?  What was the legal permissibility and use of the measures such as seclusion, physical and chemical restraints, and other restrictive practices? Were net beds and cage beds used in psychiatric and social welfare institutions?  Did the Office of the Ombudsman have unrestricted access to monitor these institutions?  Had any progress been achieved in regard to protecting the human rights of older persons?

    The Committee noted the commitment of the State party to complying with the Nelson Mandela Rules and the Bangkok Rules.  Could the State party clarify its policy, legislation and practice with respect to solitary confinement?  What was the incommunicado detention regime in Namibia?  If the State party maintained this practice, under what circumstances was incommunicado detention authorised and what was the competent organ to authorise incommunicado detention?  Would the State party consider abolishing incommunicado detention? 

    Could Namibia comment on the status of the recommendation to ratify the Optional Protocol to the Convention, and other international instruments to which it was not a party?  Was there any update in this regard? 

    JORGE CONTESSE, Committee Expert and Rapporteur, said torture was currently not a specific criminal offence in Namibia and Namibian law did not expressly criminalise any other forms of cruel, inhuman or degrading treatment or punishment.  Could information be received on the status of the draft prevention of torture bill?  What amendments to the bill sought to bring it further into line with the State party’s obligations under the Convention, as previously recommended by the Committee, including provisions that criminalised the acquiescence and complicity of State officials, or officials acting in an official capacity, to acts of torture?  Were acts amounting to torture subject to a statute of limitations?  Were there any cases where Namibia had invoked the Convention directly before domestic courts? 

    What initiatives had been taken by the State party to enshrine in its legislation fundamental legal safeguards, in particular the right to have access to a lawyer, including the right to access free and effective legal aid; the right to receive a medical examination by an independent physician; the right for individuals, at the time of arrest, to be informed of their rights; the right to be brought promptly before a judge; the right to notify a person of one’s choice of one’s deprivation of liberty; and the obligation of the authorities to maintain detention registers at places of detention?  Were there any cases in which the authorities had failed to comply with these safeguards?  How many such complaints had been registered and what was their outcomes? 

    Were there any cases in which disciplinary measures were taken against officials found responsible for violations?  What complaints mechanisms were available to report violations, and how did they function in practice?  Could the State party specify the circumstances in which a right to counsel could be waived?

    The 2022 annual report of the Ombudsman described visitation and inspection of places of detention in Namibia, noting that some of the most appalling facilities had been closed.  When this happened, where were the detainees who had been held there sent?  What was the timetable for the cleaning and renovation of these facilities?  Pretrial detention seemed to routinely exceed legal limits, with above 50 per cent of the prison population awaiting trial.  In addition, the reported shortcomings in the criminal justice system, such as the significant delays between arrest and trial, the low usage of alternatives to detention, and an inaccessible and unaffordable bail system, seemed to be the contributing factors to the large backlog of cases of pretrial detainees.  What measures had been adopted to address these shortcomings and challenges?

    It was understood that the child justice bill, which had not yet been adopted, endorsed 14 years of age to be considered criminally responsible and abolished the common law presumption.  What was the status and content of the bill?  What measures were adopted to ensure that children were not detained in detention centres for adults?  The Committee understood that no legal provision authorised the Ombudsman to make unannounced visits to places of detention; would the new legislation provide the Ombudsman with such power? 

    Violence against women, including rape, domestic violence, sexual exploitation and abuse of children, and violence against women from indigenous communities, continued to be extremely high, and the root causes of such violence had not been adequately addressed.  According to the national gender-based violence baseline study, “most drivers of gender-based violence were relationship factors that were deeply entrenched within socio–cultural norms and escalated to societal level factors.” What concrete measures had the State party adopted to address these issues, including policies and plans to address ongoing challenges; the number of complaints of gender-based, domestic, or sexual violence received by the authorities; the number of investigations and prosecutions undertaken regarding gender-based, domestic or sexual violence; and the protection and support services available to victims?

    The recommendation to remove the crime of sodomy as a ground for entry refusal into Namibia remained unaddressed.  What measures would the State party adopt to address this and other pending concerns? Could data be provided on the number of asylum applications received during the period under review, the number of successful applications, and the number of asylum seekers whose applications were accepted because they had been tortured or might be tortured if returned to their country of origin? 

    What were the existing appeals mechanisms and other mechanisms in place to identify individuals in need of international protection?  What was the procedure followed when a person invoked this right? Were individuals facing expulsion informed of their right to seek asylum and appeal a deportation decision?  How many stateless persons were living in the country?  What measures were being taken by the State party to mitigate the risk of torture or ill treatment faced by stateless persons. 

    How many law enforcement officials, prison staff, military officers, investigators, judicial personnel and border guards had attended educational programmes which included instruction on the provisions of the Convention against Torture?  How were officers were trained on investigating and handling forms of prohibited ill treatment, like cruel, inhuman or degrading treatment?  To what extent was the Ombudsman responsible for training other law enforcement agencies on investigating torture claims?  What specific initiatives were in place to train officials to prevent the traumatisation of victims of torture or ill treatment.  What steps had been taken to improve methods of investigation, including training programmes on non-coercive interrogation techniques?  Had any training programmes been developed for judges, prosecutors, forensic doctors and medical personnel dealing with detained persons on detecting and documenting the physical and psychological signs of torture?

    Responses by the Delegation 

    The delegation said any international instrument that Namibia ratified became part of their system. Namibia took the work of the treaty bodies very seriously.  Namibia’s prison capacity across the country was around 5,400.  The bed capacity was around 4,700.  Since the report was sent, there had been parole releases, persons had completed their sentences, and the President had pardoned some persons. Pretrial detention could run for any time between six to 12 months.  There was no deliberate attempt on the part of the State to keep people in pretrial detention; the authorities were trying to clear them as quickly as possible to decongest prison facilities. 

    Namibia did not have inter-prison violence in the form that was premeditated, organised, or gang related.  There were isolated incidents of inter-prison fights which were dealt with quickly.  In the rare instances when these incidents occurred, the prisoners would be separated from each other.  Namibia had made a proposal to improve community service orders. 

    It was agreed that the Ombudsman needed to be extricated from the Ministry of Justice. However, there was no evidence that there had been any interference in the work of the Ombudsman.  The Ombudsman bill was ready to go before the National Assembly for Legislative Consultation, which would help with establishing the Office of the Ombudsman.  Currently in Namibia, the Ombudsman was at the level of a judge.  Whether there should be a fixed-term or the security of tenure of the Ombudsman was currently under debate.  Since his appointment, the Ombudsman had been quite vocal about his findings and his displeasure at the conditions of prisons.  The Ombudsman had unfettered access to those facilities; however, unannounced visits could be impractical.  Namibia was doing enough to ensure those institutions which had the mandate to investigate violations of human rights were able to be supported in their work. 

    There had been no prosecutions for prostitution or sex work in Namibia.  There was some fairly outdated legislation, but these laws had not been activated because the State did not feel they were consistent with the spirit of the Namibian Constitution.  Namibia was constantly working on reforming legislation which offended the values of the Constitution.

    The Joint Declaration was the result of an open and frank conversation in Namibia’s National Assembly, reflecting the gravity of the first genocide which took place in Namibia during the twentieth century. 

    Olufuko had taken on a more cultural image and profile, as opposed to a platform for sexual initiation and child marriage.  That may have been the case in the past, but this had changed over the past 10 to 15 years.  Namibia had taken steps to ensure that acts of enforced sterilisation of individuals were not carried out.  The discussion around the reform of abortion and sterilisation was ongoing.  Namibia was concerned about the number of cases of persons who identified as persons of the lesbian, gay, bisexual, transgender and intersex community, who had lost their lives.  However, the State could not say that these crimes happened specifically due to their sexual orientation.  All of those incidents of people who had been killed over the past few months were being investigated and prosecutions would take place. 

    Homosexuality in Namibia was not a crime. 

    Namibia had an excellent proposal for child justice.  The State had engaged in extensive consultation with and received feedback from the United Nations Children’s Fund.  Early next year, the child justice bill would be considered in the Assembly.  Children were kept in facilities separate from adults, and were provided with significant social support.  Gender-based violence was a concern for Namibia.  Every year, the State commemorated the 16 days of violence against women.  There was increasing collaboration between the State and civil society organizations to increase visibility.  The text and the language of legislation combatting rape had been strengthened in 2022, as had the domestic violence legislation. 

    Questions by Committee Experts 

    ERDOGAN ISCAN, Committee Expert and Rapporteur, said the Committee appreciated the fact that they had a high-level delegation here, headed by the Minister in the lead-up to the country’s elections, and wished Namibia all the best in their democratic elections.  The Committee needed information on the reflection of policy and legislation in practice, which was why statistical information was important. 

    Could the State party inform the Committee on the policies, legislation and practices on counter-terrorism measures?  It was a fundamental obligation of States to fight terrorism, while still respecting human rights and the rule of law. 

    Could information be provided on the legislative and executive measures under the state of emergency?  Did they comply with the absolute and non-derogable prohibition of torture? 

    JORGE CONTESSE, Committee Expert and Rapporteur, said it was necessary to have a specific crime which defined the contours of torture.  What were the requirements that members of parliament had, which resulted in seven years of there being no torture bill?  It seemed that the child justice bill moved down the minimum age of criminal responsibility to 12 years; how was this consistent with human rights law? 

    Responses by the Delegation

    The delegation said Namibia’s President could declare a state of emergency in situations where there were natural disasters or threats to the State.  At no time had the declaration of a state of emergency suspended the prohibition of torture or the protection of fundamental rights and freedoms.

    Persons who engaged in terrorist activities against Namibia inside or outside of the State could face life imprisonment.  Law enforcement agencies recently attended training on counterterrorism, which reinforced the obligation to protect human rights and the rule of law.

    The anti-torture bill included definitions of torture and other cruel, inhuman or degrading treatment that were in line with the Convention.  The bill included punishments of imprisonment of varying lengths for acts of torture and other cruel, inhuman or degrading treatment.

    The child justice bill had been developed after broad consultation with international partners. It set the age of criminal responsibility at 12 years, considering the domestic context.

    International human rights instruments ratified by the State were applicable directly before the courts, and the International Covenant on Civil and Political Rights had been applied in one case.

    The Refugee Recognition and Control Act called for compliance with due process regarding detention and expulsions of asylum seekers.  Asylum seekers could be represented by legal practitioners in appeals to detention and expulsion procedures.  Namibia respected the principle of non-refoulement.

    The Government was working to regularise the status of stateless persons.  Under the birth outreach programme, teams had been deployed to rural areas to facilitate birth registration.  Bills promoting civil registration, regularisation and statelessness determination were being considered in Parliament.  Namibia was exerting efforts to eradicate statelessness.

    The Namibian police had conducted investigations into alleged cases of enforced disappearance conducted by two individuals with Angolan citizenship.  These cases had been finalised.  A bill had been developed on the training of police and military officers.  Training was aligned with the Istanbul Protocol and developed skills in investigating allegations of torture and helping victims to access redress. Police officers could not question suspects before informing them of their rights.

    The Constitution prohibited corporal punishment and State legislation prohibited such punishment in school settings.  Schools were mandated to create mechanisms that allowed learners to report incidents of corporal punishment.  In August 2024, a teacher was relieved of his duties following reports of him engaging in corporal punishment of learners.  Parents and guardians needed to respect children’s right to dignity.

    The State party had established an appeal committee and set up regulations to prevent the abuse of legal aid resources.  There had been an increase in applications for legal aid this year, with the number of applications for legal aid having increased to more than 10,000.  Measures were in place to respond to this increase in applications.

    The Mental Health Act of 1973 was outdated and used language that was not consistent with the Convention on the Rights of Persons with Disabilities.  A new bill dealing with mental health had been proposed, which set regulations regarding the limited use of seclusion, coercive methods, and restraint of persons with disabilities, and promoted de-escalation techniques.  The bill called for coercive methods to be removed within two hours at most.  There was a clear prohibition of forced sterilisation of women with mental disabilities in the bill.  It was expected to be finalised next year.

    Questions by Committee Experts 

    ERDOGAN ISCAN, Committee Expert and Country Rapporteur, said that the State’s Constitution and legislation determined that statements made as a result of torture were inadmissible in a court of law.  Were there examples of court cases in which courts had found that evidence was inadmissible because it was obtained through torture?  Had there been investigations into allegations that evidence used in the Caprivi trials was obtained through torture?

    The Committee welcomed that the State party had accepted the simplified reporting procedure, which provided for improved cooperation between the State party and the Committee.  However, the State party had submitted its last report under the traditional procedure. Mr. Iscan called on the State party to submit its next report under the simplified procedure.

    The State party had failed to respond to the Committee’s previous concluding observations and the report on follow-up to concluding observations.  The Committee hoped that the State party would respond to the next concluding observations within the given timeframe.

    JORGE CONTESSE, Committee Expert and Country Rapporteur, said that the torture bill had been pending for a number of years.  The definition of torture within the proposed legislation was very good; it was identical to that of the Convention.  Were there any persons who had been specifically convicted of the crime of torture using the Convention?  It was critical that the anti-torture bill addressed the issues of the statute of limitations and universal jurisdiction.  Article eight of the bill addressed extraterritorial jurisdiction, not universal jurisdiction.

    There was a discrepancy between international human rights law and the child justice bill. What was the domestic context that prevented Namibia from setting the age of criminal responsibility at 14? 

    There was another discrepancy between Namibia’s law on refugee control and international human rights law, which defined the prohibition of non-refoulement as absolute. Why was refoulement allowed in certain circumstances?

    There was a lack of information provided by the State party on allegations of sexual assault by police officers against asylum seekers.  Asylum seekers reportedly lived in settlements with poor conditions. Could the delegation comment on these issues?

    Trafficking in persons reportedly remained prevalent in Namibia.  The rate of reported cases seemed very low, and there was limited progress in investigations and convictions for these cases, with only two convictions between 2014 and 2019.  What progress had been made in tackling trafficking in persons?

    How would the State party address challenges that prevented the Ombudsperson from making unannounced visits to places of detention?

    Another Committee Expert said unannounced inspections of places of detention were an international standard.  The State party needed to reconsider its position on this issue.  Were there time limits for pretrial detention?  It was very impressive that it had been deemed unconstitutional to implement solitary confinement.

    Responses by the Delegation

    The delegation said the State party noted the Committee’s comments regarding the simplified reporting procedure.  There were court cases in which evidence obtained through torture was deemed inadmissible.  In such cases, additional investigations were undertaken into the identified acts of torture.

    The State party also noted the Committee’s concerns and suggestions regarding the anti-torture bill.  Namibia wished to comply with international best practices regarding non-refoulement. Legislation on deportations intended to protect Namibia from external threats while respecting the principle of non-refoulement.

    All allegations of trafficking in persons were taken very seriously.  The judicial system was independent and competent, but had limited resources, which was influencing the rate at which trafficking cases were processed. The State party was exerting efforts to prevent trafficking in persons.

    Any allegations of sexual assault and crimes against the refugee community were investigated. The State party was not aware of allegations of poor conditions in asylum shelters; it would investigate any such allegations if it received them.

    Pretrial detention could be implemented for six to 12 months, and courts could decide to withdraw charges before the six-month period based on available evidence.  The State party was working to strengthen community courts and establish small claims courts to address overcrowding in prisons and holding cells.

    The delegation had taken note of the Committee’s comments regarding unannounced visits to places of detention.  There were no cases in which attempted unannounced visits had been blocked.  The State party would continue conversations on the age of criminal responsibility.

    The Constitutional Court had decided that the implementation of solitary confinement at one prison had been unconstitutional, however, the judgement had not made the implementation of solitary confinement unconstitutional in all contexts.  The imposition of solitary confinement needed to respect legal safeguards and the fundamental freedoms of those subjected to it.

    Questions by a Committee Expert 

    JORGE CONTESSE, Committee Expert and Country Rapporteur, asked if there were examples in which refugees or asylum seekers had threatened national sovereignty. What was the Refugee Control Act trying to address in this regard?  What were the reasons behind setting the age of criminal responsibility at 12?  The possibility of unannounced visits was an effective way to prevent torture and ill treatment in places of detention. Mr. Contesse called for such visits to be conducted.

    Responses by the Delegation

    The delegation said Namibia’s law on refugee control anticipated potential crimes committed by refugees and asylum seekers.  There had been no incidents thus far in which a refugee had threatened national security, but there needed to be a law in place to address such an act.  The domestic court system was sufficiently able to analyse the constitutionality of the Refugee Control Act.

    Concerns had been raised that increasing the age of criminal responsibility would make young children more likely to engage in criminal acts.  The State party noted the Committee’s discomfort regarding this legislation.

    The Ombudsperson was independent and had the opportunity to propose unannounced visits to places of detention.  It and all State actors, as well as civil society, had access to prisons in Namibia. Representatives of the African Union had written extensive reports on prison conditions, which helped the State party to improve these conditions.  Civilians had also taken the State to court concerning prison conditions.

    There were no examples of court cases in which findings of torture had been made, but there were cases in which crimes against humanity had been recognised.  The State party took on board the Committee’s concerns regarding the torture bill.

    Concluding Remarks 

    CLAUDE HELLER, Committee Chair, said that the Committee understood that the political context in Namibia was difficult.  It would make efforts to provide the State party with relevant and achievable recommendations within its concluding observations.  The Committee was interested in maintaining an open dialogue with the State party through its follow-up mechanism.  The dialogue had been rich and was conducted in a constructive spirit.

    YVONNE DAUSAB, Minister of Justice of Namibia and head of the delegation, said the State party had provided information on the efforts it had made to implement the Convention.  The Committee’s recommendations would help to enhance mechanisms to prevent torture. Namibia was committed to addressing all forms of torture and other cruel, inhuman or degrading treatment. More needed to be done to prevent torture, including the enactment of specific legislation criminalising it. The State party was committed to protecting the rights of its people, in consideration of the domestic context. Ms. Dausab closed by thanking the Committee and all who had contributed to the dialogue.

     

    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.

     

    CAT24.020E

    MIL OSI United Nations News

  • MIL-OSI USA: Neal, Koziol Highlight Rail Investments Following Latest Federal Funding Announcement

    Source: United States House of Representatives – Congressman Richard Neal (D-MA)

    Today, Congressman Richard E. Neal joined Massachusetts Department of Transportation (MassDOT) West-East Rail Director Andy Koziol to highlight the substantial federal and state investments made in Compass Rail, including West-East Rail, following the latest $36.8 million CRISI grant awarded by the Federal Railroad Administration (FRA).

    This announcement comes one year after Congressman Neal joined Governor Healey to announce a $108 million CRISI grant to support West-East Rail, the third largest award in the nation for FY2022. This funding will facilitate two additional daily round trips between Springfield and Boston and support infrastructure improvements that will increase train speeds, allowing one trip to be completed in under two hours. The Bipartisan Infrastructure Law (BIL), which was drafted in the House Ways and Means Committee under Congressman Neal’s chairmanship, marked the nation’s largest investment in infrastructure in more than six decades and more than tripled the funding for the CRISI program.

    “Throughout my career, I was steadfast in my belief that Springfield Union Station would not meet the wrecking ball. Since its reopening, the investments that have been made in passenger rail have been extraordinary. Today, we celebrate another one of those investments, one that brings us one step closer to making West-East Rail a reality,” said Congressman Neal. “I take great satisfaction knowing that Massachusetts continues to be a great benefactor of the Bipartisan Infrastructure Law, much of which was drafted in the House Ways and Means Committee under my chairmanship. With the substantial progress that has been made with West-East Rail, the Commonwealth is well positioned to pursue additional funding for years to come.”

    Promising to rehabilitate and reopen Springfield Union Station during his campaign for City Council in 1977, Congressman Neal secured more than $75 million to support the $103 million redevelopment of Springfield Union Station. The station officially reopened on June 24, 2017, a milestone that reestablished Springfield as the crossroads of New England and positioned the Commonwealth to begin ramping up investments to improve and expand passenger rail. Since then, more than $200 million has been allocated towards West-East Rail, including:

    • $11 million from MassDOT for Platform C at Springfield Union Station
    • $1.75 million from the FRA CRISI program for the Springfield Track Reconfiguration Project, with a $1.75 million match from MassDOT
    • $108 million from the FRA CRISI program for the Inland Route, with an $18 million match from MassDOT
    • $4 million from MassDOT for Palmer Station Planning and Design
    • $8 million from MassDOT for Pittsfield Track Capacity
    • $36.8 million from the FRA CRISI program for the Springfield Track Reconfiguration Project, with a $9.2 million match from MassDOT

    This does not include the $75.7 million awarded under the American Recovery and Reinvestment Act High Speed and Intercity Passenger Rail Program in 2010 to restore the Vermonter. This funding, coupled with $20 million for the West Springfield flyover anticipated in the state’s Capital Investment Plan, along with the state of good repair work that has been completed along the Knowledge Corridor, brings the total investment in Compass Rail to nearly $300 million.

    “We are grateful to Congressman Neal, other members of our congressional delegation, legislators, and local officials for helping us expand and enhance passenger rail service in Massachusetts,” said West-East Director Andy Koziol. “The Healey-Driscoll administration has been and will continue to be persistent in pursuing federal grant opportunities to support capital projects which will create a state transportation system which is equitable, resilient, and meets the needs of all communities.”

    One of 122 projects funded by the FRA, the latest award from the CRISI program totals $36.8 million. Funding will support the Springfield Track Reconfiguration Project, which is designed to increase capacity to accommodate both freight and increased passenger rail service. The project will include building new crossovers and layover tracks, upgrading platforms around Springfield Union Station, and modernizing track and signal systems. The project is being advanced by MassDOT in coordination with the Springfield Redevelopment Authority, Amtrak, CSX, and other railroads that operate in Springfield.

    “I’m thrilled to celebrate our continued progress in advancing West-East Rail,” said Director of Federal Funds and Infrastructure Quentin Palfrey. “The Healey-Driscoll administration pulling out every stop to bring home more federal funding so we can continue to achieve our transit goals. Thank you to the Biden-Harris Administration, Secretary Buttigieg, and to our outstanding Congressional delegation for making today’s award possible.”

    Springfield Union Station saw more than 2 million visitors come through its doors during FY2023, much of which can be attributed to an increase in rail passengers. Amtrak witnessed a 24% increase in ridership nationwide during FY2023, with a 29% uptick in the northeast alone. Amtrak’s New Haven-Springfield route, which includes the Valley Flyer, saw 442,028 riders, a 36% increase from FY2022, while the Vermonter saw nearly 100,000 riders, a 14.5% increase.

    ###

    MIL OSI USA News

  • MIL-OSI: Alectra Completes Private Placement Offering of $300 Million Aggregate Principal Amount of 4.309% Series 2024-2 Senior Unsecured Debentures Due 2034

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION IN THE UNITED STATES

    MISSISSAUGA, Ontario, Oct. 31, 2024 (GLOBE NEWSWIRE) — Alectra Inc. (“Alectra” or the “Corporation”) announced today that it has closed its private placement offering of C$300 million aggregate principal amount of 4.309% Series 2024-2 senior unsecured debentures (the “Series 2024-2 Debentures”) due October 30, 2034. The net proceeds of the offering will be used to repay indebtedness and for general corporate purposes.

    The Series 2024-2 Debentures were offered in each of the provinces of Canada on a private placement basis through a syndicate of agents that was co-led by RBC Dominion Securities Inc., CIBC World Markets Inc and BMO Nesbitt Burns Inc.

    No securities regulatory authority has either approved or disapproved of the contents of this news release. The Series 2024-2 Debentures have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws.

    Accordingly, the Series 2024-2 Debentures may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Alectra in any jurisdiction in which such offer, solicitation or sale would be unlawful.

    About Alectra Inc.

    Serving more than one million homes and businesses in Ontario’s Greater Golden Horseshoe area, Alectra Utilities is now the largest municipally-owned electric utility in Canada, based on the total number of customers served. We contribute to the economic growth and vibrancy of the 17 communities we serve by investing in essential energy infrastructure, delivering a safe and reliable supply of electricity, and providing innovative energy solutions.

    Our mission is to be an energy ally, helping our customers and the communities we serve to discover the possibilities of tomorrow’s energy future.

    Forward-Looking Information

    Certain information in this press release may constitute forward-looking information under applicable securities laws. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.

    Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Alectra as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. The forward-looking statements contained in this press release are made as of the date of this press release, and Alectra expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

    Media Contact:

    Danielle Diaz – Executive Vice President and Chief Financial Officer, Alectra Inc.
    investorrelations@alectra.com 1.833.MEDIA-LN (1-833-633-4256)

    The MIL Network

  • MIL-OSI Economics: DDG Hill discusses Uzbekistan’s WTO accession path at high-level event in Washington D.C.

    Source: WTO

    Headline: DDG Hill discusses Uzbekistan’s WTO accession path at high-level event in Washington D.C.

    DDG Hill noted Uzbekistan’s accession process has accelerated in recent years, in great part due to the active political engagement of President Mirziyoyev. Recent presidential decrees have focused on integrating Uzbekistan more closely with its immediate region and more widely with the international community, she said, with important reforms being pursued in key areas, such as the role of state trading enterprises, export restrictions and subsidies, technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures, and trade facilitation.
    “Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform, in the strategic region of Central Asia, with WTO accession very high on the government’s agenda. Reforms associated with the accession process play an important role in the future growth of the acceding country,” said DDG Hill.
    She also cited the WTO’s World Trade Report 2024, which found that economies that reform their markets during the WTO accession process grew on average 1.5 percentage points more than economies that did not reform. Moreover, reforming economies continued to grow faster even after accession to the WTO, with greater diversification in their trade and stability in export growth. Other factors that boosted trade included the predictability of trade policy as a result of meeting WTO commitments, and good governance.  She thanked WTO members and development partners for the continuous support for Uzbekistan’s accession to the WTO. Her full remarks are available here.
    The high-level meeting was organized as a side event at the World Bank and IMF Annual Meetings and hosted by the World Bank. Vice President for Europe and Central Asia at the World Bank Antonella Bassani said that Uzbekistan’s actions and changes in policy were notable and pledged the Bank’s assistance in key reform areas in support of Uzbekistan’s accession to the WTO.
    Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev said that Uzbekistan’s reforms towards a market driven economy, guided by the overarching vision of Uzbekistan’s 2030 Strategy, have led to more efficient resource allocation and increased competitiveness, aligning with the broader agenda of Uzbekistan’s WTO accession.
    Following the adoption of Presidential Decree No. PD-85 of 3 June 2024, he said that “Uzbekistan is continuing to take bold and decisive actions to align its economic and legal frameworks with international standards as part of its path toward WTO accession.” He also noted that the capacity building assistance provided by the WTO, IMF and World Bank as well as international donors has been invaluable in preparing Uzbekistan to adopt best practices and to join the WTO by 2026.
    Uzbekistan’s Chief Negotiator Azizbek Urunov emphasized the renewed momentum in Uzbekistan’s accession since 2023, on both multilateral and bilateral negotiation tracks. On the bilateral front, he said that Uzbekistan has reached agreement on market access with 20 members, a significant achievement, considering no agreements had been negotiated at the beginning of 2023. He noted the importance of comprehensive legislative reform, underlining that a mechanism has been introduced for the mandatory examination of all legislative proposals to ensure compliance of all new legislation with international norms.
    “In the years ahead, we will continue to focus on building the institutions and infrastructure that will support Uzbekistan’s integration into the global economy. WTO membership is just the beginning; it is the foundation upon which we will build a more prosperous, diversified, and resilient economy,” he said.
    The event also featured H.E. Furqat Sidikov, Ambassador Extraordinary and Plenipotentiary of the Republic of Uzbekistan to the United States; Ms. Mona Haddad, Global Director of Trade, at the World Bank; Mr. Koba Gvenetadze, Resident Representative at the IMF; Ms. Zhanar Aitzhan, former Minister and Chief Negotiator of Kazakhstan; as well as representatives of the US Government and the private sector. The discussion was moderated by Mr. Antonio Nucifora, Practice Manager for Economic Policy Global Practice at the World Bank.

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    MIL OSI Economics

  • MIL-OSI Economics: The 2024 Annual Meetings of the World Bank Group and the International Monetary Fund — Uzbekistan’s path to WTO accession: Navigating reforms and global integration

    Source: WTO

    Headline: The 2024 Annual Meetings of the World Bank Group and the International Monetary Fund — Uzbekistan’s path to WTO accession: Navigating reforms and global integration

    Your Excellencies,Deputy Prime Minister Khodjaev,Vice-President Bassani,Ambassador Tai, (TBC)Distinguished participants,
    Let me start by first thanking you for organizing this meeting and for inviting the WTO to address the status of Uzbekistan’s accession to the WTO. Accession to the WTO is a subject close to the Director General’s heart. She has at numerous occasions indicated her strong support for Uzbekistan’s accession to the WTO, and so I am particularly pleased to be speaking to you today on this issue.
    Although Uzbekistan’s Working Party on Accession to the WTO was established as far back as in 1994, there was a gap of about 15 years before negotiations were resumed recently in 2020. Since then, the process has accelerated, both bilaterally and on the multilateral front.
    This is in great part due to the active political engagement of President Mirziyoyev who has taken a keen interest in ensuring that recent economic reforms have focused both on integrating Uzbekistan more closely with its immediate region and more widely with the international community.
    Among these, a key piece of legislation, which no doubt will be discussed further today, is Presidential Decree 85 of 3 June this year. The Decree, in one fell swoop, addressed several issues of concern to WTO Members such as State trading enterprises and enterprises with exclusive rights, export restrictions and export subsidies. PD-85 has provided the momentum to continue and even accelerate economic reforms in areas such as export restrictions and the harmonization of excise duties. Uzbekistan, under the very able guidance of Deputy Prime Minister Khodjaev and Chief Negotiator Mr Urunov, also continues to undertake reforms in other key areas, notably to update procedures related to technical barriers to trade (TBT) and sanitary and phytosanitary measures (SPS), another area of concern for WTO Members. Reforms on trade facilitation had also been brought forward with most objectives in Uzbekistan’s Trade Facilitation Action Plan being implemented ahead of time. With regard to agriculture, good progress was also made during an informal meeting on agricultural support in Geneva just last month. It is good to see that technical work to update regulations and procedures is keeping up with economic and political ambitions.
    Bilaterally also, Uzbekistan has stepped up its engagement with WTO Members and concluded a number of bilateral agreements over the last few years. Earlier this year Uzbekistan signed a couple of bilateral agreements at the WTO and my understanding is a further 4-5 may be signed before the end of the year, with the goal being to reduce the number of outstanding bilateral negotiations to under 10 WTO Members by next year.
    Since the resumption of the accession process, successive cycles of Working Party meetings have shown continued engagement with WTO Members. Going forward, we will hold the 9th meeting of the Working Party in December for which documents have already been circulated to WTO Members.
    From the Secretariat’s perspective, Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform, in the strategic region of Central Asia, with WTO accession very high on the government’s agenda. Reforms associated with the accession process play an important role in the future growth of the acceding country. Recent research by the WTO in the World Trade Report for 2024 found that economies that reform their markets during the WTO accession process grew on average 1.5 percentage points more than economies that did not reform; reforming economies moreover continued to grow faster after accession to the WTO, with greater diversification in their trade and stability in export growth. Other factors that have boosted trade include the predictability of trade policy which comes with meeting WTO commitments, and good governance.
    As Ambassador Aitzhan from Kazakhstan and Mr Dang from Viet Nam are both here with us today, it would be remiss of me to not note the special role played by recently acceded WTO Members in supporting accessions. From a regional perspective especially, Kazakhstan has shared its accession experience with other acceding countries in the region, most recently at a training course on market access in goods for acceding Governments in Geneva. We, at the WTO, are very grateful to recently acceded Members for showing leadership and sharing lessons learned with other acceding governments.
    Finally, let me also take this opportunity to thank the many other partners present today – the United States, the European Union, the IMF and the World Bank – who have been instrumental in advising and supporting Uzbekistan in its journey to WTO accession. The role you play is so important in helping Uzbekistan advance its economic reforms and once again I would like to thank you for your support.
    Thank you for listening. I look forward to an excellent discussion this morning and continued momentum in Uzbekistan’s accession to the WTO.

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    MIL OSI Economics

  • MIL-OSI Economics: A stable euro in a strong Europe | Karl Otto Pöhl Lecture to the Frankfurt Society for Trade, Industry and Science

    Source: Bundesbank

    Check against delivery.

    1 Introduction

    Ladies and gentlemen,

    Thank you very much for inviting me. It gives me great pleasure to be here with you today, and I am very honoured to be delivering the Karl Otto Pöhl Lecture.

    My congratulations on this series of lectures. Nine years ago, it premiered at the Bundesbank’s Regional Office in Hesse at the Taunusanlage in Frankfurt. Since then, various prominent people have presented their views of monetary union. Two of them will come up later on in my talk.

    But let’s stay for now with the lecture’s namesake: Karl Otto Pöhl. On 30 May 1990, he addressed the Frankfurt Society for Trade, Industry and Science as President of the Bundesbank, perhaps even standing right here at this lectern.[1]

    Times were turbulent back then: German monetary union had just been decided and needed to be implemented within the space of just a few weeks. At the same time, the Delors Report had outlined the transition to a European Economic and Monetary Union. Its first stage entered into force on 1 July 1990. Germany’s “Frankfurter Allgemeine Zeitung” newspaper wrote back then that the Bundesbank was facing two unprecedented historical challenges.

    As was his nature, Karl Otto Pöhl shied away from neither challenges nor plain speaking. He explained in no uncertain terms where the difficulties and pitfalls of the two monetary unions lay. At the same time, he left no doubt that he would strive tirelessly to ensure that they were a success. He concluded his speech back then with the words: “I am also confident that we will succeed.” This combination of plain speaking, drive and optimism were characteristic of Karl Otto Pöhl – and we could do with more of that today as we strive to overcome the current challenges.

    Karl Otto Pöhl would have turned 95 this year. We owe him a great deal. His work in the Delors Commission resonates to this day: It was under Mr Pöhl’s chairmanship that the Committee of Central Bank Governors drafted the Statute of the European Central Bank. Thus, the European Central Bank was modelled on the Bundesbank and created as an independent central bank that pursues price stability as its primary objective.

    However, Mr Pöhl was also well aware that these institutional pillars alone are not sufficient to permanently uphold a stable currency for Europe. A firm foundation is needed for the pillars to stand upon. This foundation consists of sound public finances, integrated markets and public confidence in the central bank. Then as now, it is important to strengthen this foundation so that the euro can withstand even a storm. I would now like to talk about what this means specifically in the here and now.

    2 Sound public finances in the euro area

    Let’s start with public finances – and a question: Why should they matter to us in the first place? The Eurosystem has the task of shaping monetary policy for the euro area. Fiscal policy is the Member States’ responsibility. Why then do central bankers talk so often about budget deficits, debt ratios and fiscal rules?[2]

    Our mandate provides the answer: Unsound public finances are a threat to price stability. If the debt burden grows steadily in size, people might lose confidence that the government can continue to shoulder this burden without “inflating it away”. Inflation expectations, and therefore inflation itself, could rise. And monetary policy would have to push back more vigorously to keep inflation under control. This, in turn, would come at a greater cost to the economy as a whole.

    That is why we must nip in the bud any impression that central banks are under pressure to set key interest rates lower or maintain higher bond holdings than actually warranted by monetary policy out of consideration for public finances. And that is exactly why we are such outspoken advocates of effective fiscal rules. They are intended as guardrails for sound public finances. Then monetary policy can safeguard price stability, and do so with as little cost to the aggregate economy as possible.

    Fiscal rules were included in the design of European monetary union from the outset. This was thanks, in part, to Karl Otto Pöhl. Even back in the days of the Delors Commission, he was already advocating binding budgetary rules. Mr Pöhl is also said to have been the first to introduce the idea of a 3% deficit rule.

    Since then, the rules have been amended on several occasions. The latest reform entered into force in April 2024. On paper, the earlier rules were not bad at all. In practice, however, they didn’t have the desired effect. One reason was that numerous exceptions and discretionary powers were used to excuse the many instances in which targets were missed. As a result, the majority of euro area countries have debt exceeding the reference value of 60% of GDP, with a few even well above the 100% mark.

    Against this background, the rules were redrawn. In the reform, a great deal of emphasis was placed on national ownership, the intention being to make Member States feel more bound to the thresholds. If this overhaul does indeed lead to the rules having more binding force, that would be very welcome.

    At the same time, however, the commitments must also be ambitious enough to significantly bring down high deficit and debt ratios. Given a number of vulnerabilities in the new framework, this is not a matter of course. For example, the country-specific limits are based on many assumptions, some of which extend far into the future. The spending limits are ultimately a matter of negotiation. And in practice, response times to undesirable developments will be very long.

    The first acid test is imminent. Spending limits for the first planning period are currently being agreed upon. The plans should stake out a path for high deficit and debt ratios to come down reliably. Responsibility for agreeing such plans lies with the Commission and the Council. In my opinion, Germany should act as a role model in this process. That means leading by example and committing to a path on which the rules are applied rigorously.

    Given high levels of debt in the euro area, it is important that the reformed rules work better than the old ones. As I said earlier, sound Member State finances are part of the foundation of a stable economic and monetary union.

    3 Integrated capital markets in Europe

    But they alone are not enough. In his speech back then to the Frankfurt Society for Trade, Industry and Science, Karl Otto Pöhl explained that the emerging economic and monetary union meant, first, an integration of the markets. That was the most important thing of all, he said.[3] In particular, he pointed to the increasing integration of money and capital markets following the lifting of many restrictions on the free movement of capital.

    There were, and still are, a number of reasons why it is important that European financial markets should be as integrated as possible. First, this helps ensure that monetary policy impulses have equal effect throughout the euro area. Second, in the event of an economic shock in one Member State, it makes sure that downstream costs are cushioned across the currency area. This contributes to the stability of the economy as a whole and the financial system. And third, in a deep, liquid capital market with a broad range of products, it is easier for enterprises to find the financing that suits them best. This is particularly true of start-ups and growth companies. They need access to a developed venture capital market. More private capital is also important to boost investment in the green and digital transformation of the European economy. This investment is urgently needed to strengthen the EU’s productivity and competitiveness.

    So you see, everything points to the benefits of a genuine pan-European capital market. And the EU set itself the goal of creating a capital markets union a decade ago. Unfortunately, the reality is still very different.

    Overall, progress on financial integration in the euro area is disappointing. This was the conclusion recently reached in a report by the European Central Bank. It states that “[b]oth price-based and quantity-based financial integration indicators have declined substantially over the past two years, with no sizeable increase since the inception of Economic and Monetary Union. Despite significant legislative efforts over the last decade, cross-border financial market activities and risk sharing have not grown …”.[4]

    This finding demonstrates just how big the task is. But there is also good news: We know fairly exactly where the pain points lie and can start there. Areas for action include, for example, a more vibrant securitisation market, integrated structures in financial supervision, harmonised securities legislation, and better-coordinated national insolvency and accounting rules.

    The new Commission now needs to place the pursuit of a European capital market at the very top of its list of priorities. We must make more rapid progress on this issue than we have done so far. Policymakers have mostly been united behind the abstract objectives. However, they have then too rarely found the strength to agree on concrete measures. A whole host of measures is needed to achieve the objectives. In some cases, they encroach deeply on national law. If real progress is to be made, all parties will have to pull together, i.e. the Commission, the Parliament and the Member States.

    Happily, the topic has gained fresh momentum this year. Be it the statements by the Eurogroup and the ECB Governing Council or the reports by Enrico Letta and Mario Draghi – they are all providing tailwinds. Now is the time to use them!

    The Eurosystem itself is also contributing to success in this area, particularly in terms of financial market infrastructure. For example, we are advocating for new technologies to make it easier to issue, trade and settle financial instruments. In my view, digitalisation opens up fresh opportunities to strengthen the efficiency of European financial markets, while also breaking down boundaries between national financial markets. We have far from exhausted the potential here!

    4 Public confidence in the central bank

    A Europe with integrated markets and sound public finances is a stronger Europe. It is a Europe with stronger resilience in the face of crises, even during turbulent times; a Europe that allows us to shape our future with self-assurance and on the back of our own efforts. Achieving this goes beyond the monetary policy foundation; it also involves the basis of citizens’ trust in the EU.

    The general public should be able to have as much confidence in the EU in future as they do now.[5] We, as the Eurosystem central banks, are also particularly dependent on the confidence and support of the general public.

    We act independently of politics. This independence has been deliberately granted to us for monetary policy so that we can fulfil our mandate free from political influence. We cannot simply take the public’s trust as a given. Only if the people have confidence in us will they accept the independence granted to us. This trust must be earned time and time again – by acting in accordance with our mandate and communicating transparently and comprehensibly with the public. In short: Our deeds and our words should go hand in hand.

    If people have confidence in central banks and their promise of stability, this also helps to anchor inflation expectations.[6] Well-anchored inflation expectations make it easier for the central bank to actually achieve its target. And meeting the inflation target, in turn, reinforces people’s confidence in the central bank. In this way, a virtuous circle is created – a cycle of positive events.

    The Eurosystem has repeatedly demonstrated that its promise of stability was not merely empty words. Perhaps you remember when the then ECB chief economist, Peter Praet, gave his Karl Otto Pöhl Lecture in 2017. At that time, the Eurosystem was struggling with an inflation rate that remained stubbornly below target. Mr Praet explained what the Governing Council had done to counter deflation risks that had emerged since 2014.

    Alternatively, think back to the economic environment back when Christine Lagarde spoke with you two years ago. In autumn 2022, euro area inflation had peaked, even reaching double digits for a time. Against this backdrop, the ECB President underscored the Governing Council’s determination to push inflation down to its 2% target.

    Here, too, words and deeds were aligned: by September 2023, we had raised key interest rates by a total of 450 basis points in ten steps – a move that bore fruit. The inflation rate has since fallen significantly. In September of this year, it was below 2% in the euro area – and that for the first time in over three years. Tomorrow we will get the first estimate for October. Inflation is also likely to have risen slightly again due to base effects in energy.

    Looking beyond the monthly ups and downs, it can be seen that price stability is no longer far off, but the last mile of the journey still needs to be traversed. In particular, services inflation, which has been relatively sluggish in past experience, remains high, standing at 3.9% at last count.

    The ECB Governing Council lowered key interest rates in October for the third time since June. This was appropriate in view of the somewhat more favourable inflation outlook shown by the data. Our data-dependent approach has proven its worth, particularly in view of the prevailing uncertainty. A new forecast will be available to the Governing Council in December, and that will show us whether we are still on track in terms of inflation developments. I advise you to remain cautious and not to rush into anything.

    Monetary policy needs to ensure that the inflation rate stabilises at 2% over the medium term. Adhering to our promise of stability is absolutely crucial if we are to maintain the confidence that the general public have in us, particularly in light of their inflation experiences in recent years. Accessible communication helps with this.[7]

    Karl Otto Pöhl had already come to this realisation, back in a time when central banks were, in some cases, famous (and infamous) for their secrecy. In an interview in 1988, he said: “I am thoroughly convinced that one of my main tasks is to clarify, to explain.”[8]

    Studies also suggest that people with a good financial education tend to trust central banks.[9] We therefore have a strong vested interest in improving the public’s understanding of money, currency and central banks. This is where the Bundesbank’s educational resources, such as lectures at schools, training courses for teachers, teaching materials, explanatory films and the Money Museum, come into play.

    The effects of financial education could extend even further: researchers from the European Central Bank have investigated how people with differing degrees of financial knowledge responded to the interest rate reversal in 2022 and 2023.[10] People with basic and advanced financial knowledge were surveyed over several months. It transpired that both groups expected significantly higher interest rates. However, there were differences between whether the surveyed groups deemed it better to take out loans or to make savings: those with higher financial literacy adjusted their assessments more quickly and to a considerably greater degree. The impact of the course of monetary policy on people’s behaviour therefore also depends on their financial knowledge. As a result, then, greater emphasis on financial literacy could help monetary policy measures to be translated into action on the part of the individual.

    A good general understanding of economics and finance has yet more advantages. For instance, such knowledge enables people to make better decisions about how to spend, save and invest their money. Studies show that financial knowledge has a positive impact on households’ return on investment.[11] Furthermore, it is more likely to prevent them from making expensive mistakes or falling victim to fraud.

    Financial education also affords opportunities for social advancement. It is therefore important to promote the acquisition of such knowledge in society at large. If knowledge about planning for retirement and wealth accumulation is only gleaned from one’s parental home, it is primarily those who are already in positions of privilege who will benefit. This can entrench and even exacerbate societal inequalities.[12]

    It is all the more worrying that, according to a survey carried out within the EU, an average of just over one in two individuals possesses basic financial knowledge.[13] Although Germany’s performance is above average, we still have plenty of room for improvement. The German government’s initiative aimed at strengthening financial education therefore comes as a welcome development. One component of this initiative, a national strategy for financial literacy, is currently under development. The OECD has provided valuable analyses and recommendations that create a sound basis for policy.[14]

    In any case, there is no lack of interest, especially among young people. According to an OECD study, 81% of 14 to 24-year-olds would like to learn more in school about options for retirement provision, 87% about how to handle their money and 73% about investment opportunities.[15] In addition, 78% of young people in Germany want economics to play a greater role in school.[16] A stronger focus on economic and financial topics in the school curriculum would fall on fertile ground, then.

    5 Conclusion

    The Eurosystem is well equipped to maintain stable prices in the euro area through independence and a clear mandate. But in stormy times especially, we need to be firmly anchored upon a strong foundation, comprising elements such as sound public finances, integrated markets and confidence in the central bank. This foundation must be maintained, and, where necessary, re-laid.

    First and foremost, we are, of course, required to say what we are doing and to do what we are saying. Central bankers would be well advised to adhere to this guiding principle. However, what is also clear is that we cannot guarantee the strength of the euro as a currency by acting alone; rather, politicians and society as a whole have their own parts to play. Pöhl’s contemporary Helmut Schlesinger, who recently turned 100 years old, coined the term “stability culture”.[17]

    I would like to close by citing a quote of Karl Otto Pöhl’s that holds as true today as it originally did over 40 years ago: “There is no law of nature stating that we are entitled to live on an “island of stability”. Such a privilege has to be earned through applying a durable stability policy.”[18] Indeed, this is what we in the Eurosystem are working towards on a day-to-day basis, and I am confident that we will succeed.

    Footnotes

    1. Pöhl, K. O., Rede zur deutschen und europäischen Währungsunion vor der Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft, 30 May 1990. 
    2. Allard, J., M. Catenaro, J. Vidal and G. Wolswijk (2013), Central bank communication on fiscal policy, European Journal of Political Economy, Vol. 30.
    3. Pöhl, K. O., Rede zur deutschen und europäischen Währungsunion vor der Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft, 30 May 1990.
    4. European Central Bank, Financial Integration and Structure in the Euro Area, June 2024.
    5. European Commission (2024), Standard Eurobarometer 101 – Spring 2024.
    6. Christelis, D., D. Georgarakos, T. Jappelli and M. van Rooij (2020), Trust in the Central Bank and Inflation Expectations, International Journal of Central Banking, Vol. 16, No 6; Mellina, S. and T. Schmidt (2018), The role of central bank knowledge and trust for the public’s inflation expectations, Deutsche Bundesbank Discussion Paper No 32/2018; Bursian, D. and E. Faia (2018), Trust in the monetary authority, Journal of Monetary Economics, Vol. 98. 
    7. Eickmeier, S. and L. Petersen (2024), Toward a holistic approach to central bank trust, Deutsche Bundesbank Discussion Paper No 27/2024.
    8. Die Macht des Wortes, interview with manager magazin on 1 June 1988.
    9. Niţoi, M. and M. Pochea (2024), Trust in the central bank, financial literacy, and personal beliefs, Journal of International Money and Finance, Vol. 143.
    10. Charalambakis, E., O. Kouvavas and P. Neves (2024), Rate hikes: How financial knowledge affects people’s reactions, The ECB Blog, 15 August 2024. 
    11. Kaiser, T. and A. Lusardi (2024), Financial literacy and financial education: An overview, CEPR Discussion Paper No 19185; Deuflhard, F., D. Georgarakos and R. Inderst (2019), Financial literacy and savings account returns, Journal of the European Economic Association, Vol. 17, No 1.
    12. Lusardi, A., P.-C. Michaud and O. S. Mitchell (2017): Optimal Financial Knowledge and Wealth Inequality, Journal of Political Economy, Vol. 125(2).
    13. Demertzis, M., L. L. Moffat, A. Lusardi and J. M. López (2024), The state of financial knowledge in the European Union, Policy Brief 04/2024, Bruegel.
    14. OECD (2024), Strengthening Financial Literacy in Germany: Proposal for a National Financial Literacy Strategy, OECD Publishing, Paris, https://doi.org/10.1787/81e95597-en.
    15. OECD (2024), Financial literacy in Germany: Supporting financial resilience and well-being, OECD Business and Finance Policy Papers, https://www.oecd.org/en/publications/financial-literacy-in-germany_c7a28393-en.html.
    16. Bertelsmann Stiftung (2024), Factsheet: Wirtschaftspolitische Interessen junger Menschen in Deutschland.
    17. Schlesinger, H., Eine europäische Währung muß genauso stabil sein wie die D-Mark, Handelsblatt, 31 December 1991.
    18. Welt am Sonntag, 12 April 1981.

    MIL OSI Economics

  • MIL-OSI Economics: Per Jacobsson Lecture 2024 — Ngozi Okonjo-Iweala: “Delivering on new global challenges: How can we keep multilateral coherence whilst re-imagining the multilateral trading system?”

    Source: WTO

    Headline: Per Jacobsson Lecture 2024 — Ngozi Okonjo-Iweala: “Delivering on new global challenges: How can we keep multilateral coherence whilst re-imagining the multilateral trading system?”

    Excellencies, Dear Raghu, Minouche, Maury, ladies and gentlemen, friends,
    Thank you. What an honor to follow in the footsteps of previous Per Jacobsson lecturers – all the more so in this 80th anniversary year of the Bretton Woods Conference.
    We are living in troubled times – something Per Jacobsson knew well. So far as trade is concerned, the times are not only troubled, they are tense. Trade is sometimes blamed and scapegoated for poor outcomes that really derive from macroeconomic, technology, or social policy, for which trade is not responsible.
    Trade policies and tools are being deployed not just to solve trade-related problems, but also to try to address security and geopolitical concerns.
    As unilateral measures or threats thereof become increasingly widespread, trade policy has been getting more restrictive. In recent months, the US, the EU, Turkey, and Canada have introduced new tariffs and countervailing duties on Chinese electric vehicles and other products, including steel. China has countered with WTO disputes and measures against EU products such as dairy, pork, and brandy. 
    These are among the over 130 new trade-restricting measures recorded by the WTO Secretariat since the start of this year. This number represents an 8% increase to the stockpile of over 1600 restrictive measures introduced between 2009 and 2023, which as of last year were already affecting over 10% of world goods trade. In addition, WTO members initiated 210 trade remedy investigations in the first half of 2024 – nearly as many as in all of 2023. While not all will culminate in the imposition of duties, investigations have a well-documented chilling effect on trade. And I haven’t even mentioned subsidies yet. 
    Frictions are manifesting as trade disputes. Six of the eight WTO disputes initiated this year deal with green technologies, particularly electric vehicles.
    I hope we are not on a path that leads back to the sort of economic disorder that came before Bretton Woods – disorder that was followed by political extremism and war.
    It was precisely to avoid a repeat of such circumstances that the multilateral economic institutions were created. My concern today is that we have forgotten this lesson – that we have forgotten the good these institutions have done.
    Walking away from the legacy of Bretton Woods, including the trading system, would diminish the world’s ability – collectively and at the national level – to respond to problems affecting people’s lives and opportunities.
    I will argue that there is a better path forward: re-imagining the global trading system and the rest of the multilateral economic architecture to help us meet the technological, environmental, social and geopolitical challenges of our time. To succeed, its various components must work in concert – an idea we have come to call ‘coherence’.
    In the 1940s, the overall thrust of coherence was that trade, reconstruction financing, and monetary policymaking need to be in harmony with each other, and anchored in institutions and rules across countries, to promote growth, prosperity, and peace.
    Today, delivering lasting improvements to people’s lives and livelihoods requires us to solve problems of the global commons.
    The notion of coherence across different policy areas would have made sense to Per Jacobsson. His convictions about sound money, and its importance for durable growth and recovery, were shaped by his own experiences. As a young man he saw the collapse of global economic integration amid the First World War. From his position at the League of Nations in the 1920s, he witnessed the failed attempts by leading economies to establish effective international coordination on global finance and trade – a memory that echoes uncomfortably today.
    We know what happened when the downturn came at the end of the decade. Vicious circles emerged: of falling output, deflation, banking and financial crises, trade protectionism and retaliation, and exchange rate chaos. Countries retreated into increasingly isolated economic blocs.
    The experience of those years was seared into the consciousness of the officials who gathered in Bretton Woods in July 1944. US Treasury Secretary Henry Morgenthau opened the conference by looking back at what he called “the great economic tragedy of our time.” I quote “We saw currency disorders develop and spread from land to land, destroying the basis for international trade and international investment and even international faith. In their wake, we saw unemployment and wretchedness — idle tools, wasted wealth. We saw their victims fall prey, in places, to demagogues and dictators. We saw bewilderment and bitterness become the breeders of fascism and, finally, of war.”
    What Bretton Woods delivered
    The genius of Bretton Woods was that it turned the vicious circles of the 1930s into virtuous ones, by recognizing that macro-financial stability, reconstruction and development, and trade went hand-in-hand.
    Instead of beggar-thy-neighbor policies, countries would treat trade, monetary issues, and even domestic macro-economic policies as matters of common interest.
    Instead of excessively rigid or chaotically fluctuating currencies, there would be orderly, rules-based management of exchange rates and balance of payments problems.
    Instead of underinvestment, there would be long-term financing for reconstruction and expanding productive capacity.
    Instead of quantitative restrictions, prohibitive tariffs, and bilateral clearing, there would be a coordinated lowering of trade barriers, and freedom to undertake international payments and current account transactions.
    The idea of coherence across policy fields, with trade as a unifying theme, was baked into the system from day one. Promoting the “balanced growth of international trade” is written into the founding mandates of both the IMF and the World Bank – not as an end in itself, but as a means to higher employment, productivity, and incomes.
    The trade leg of the stool, alongside the Bank and the IMF, was supposed to be the International Trade Organization, but it ran aground in the US Congress. A parallel negotiating process in 1947 produced the General Agreement on Tariffs and Trade, which was nominally temporary and did not require Congressional ratification. Successive rounds of GATT negotiations substantially reduced barriers to trade. The growing number of “contracting parties” used the GATT to resolve and avoid trade disputes. By the 1960s, global trade was growing faster than output.
    The decades that followed Bretton Woods and the Marshall Plan delivered a breathtaking recovery from the devastation of the Second World War.
    Strong growth in the 1950s and 1960s saw per capita incomes in Western Europe and Japan begin to converge with those in the United States.
    Major European currencies achieved full convertibility in 1958, when Per Jacobsson was leading the IMF.
    These gains, however, were largely confined to industrialized countries.
    Most newly independent developing countries continued to lose ground in relative terms, as they struggled with declining terms of trade for their commodities.
    But a handful of poor economies in East Asia started trying to use increasingly open external markets to pursue export-led development.
    Discordance and reinvention: the 1970s and 1980s
    Coherence gave way to discordance in the 1970s, with the oil shocks, stagflation, the advent of floating exchange rates, and a wave of emerging market debt crises.
    By the mid-1980s, the success of the so-called Asian tigers had become a compelling example, inspiring many developing country governments to pivot from inward-oriented to export-oriented development strategies.
    At the international level, growing frustration with ad hoc protectionism and “à la carte” approaches to GATT strictures created demand for more rules-based trade cooperation.
    The Uruguay Round negotiations from 1986 to 1994 broadened the reach of multilateral trade rules to cover services and intellectual property, filled longstanding gaps with respect to agriculture and textiles, and unwound much of the protectionism that had emerged in the preceding years.
    The nominally provisional GATT was transformed into the World Trade Organization, with a binding dispute resolution mechanism that enhanced the predictability offered by its expanded rulebook.
    The preamble to the Marrakesh Agreement establishing the WTO opened up new vistas for the organization, defining its purpose as using trade not just to raise living standards and create jobs but to advance sustainable development – thus introducing environmental concerns that were absent in the 1940s.
    1990 to 2020: A “golden period of economic development”, but clouds on the horizon
    The Uruguay Round and the end of the Cold War would mark a second era of coherence and virtuous circles across the trading system, the World Bank, and the IMF. And this time, the benefits were spread much more widely across countries and people.
    The WTO became an anchor for outward-oriented economic reforms in many emerging markets and developing economies.
    Increasingly open and predictable trade became a stronger driver of development, productivity, specialization and scale.
    Better macro-financial policies bolstered growth – and trade performance – in many emerging markets and developing countries. So did improved human capital and physical infrastructure.
    Trade and modern supply chains became powerful sources of disinflationary pressures.
    Market-oriented reforms in China, Eastern Europe, India and other developing economies brought them into the increasingly global division of labor. Trade boomed, incomes rose, and poverty plummeted.
    Between 1995 and 2022, as low- and middle-income economies nearly doubled their share in global exports from 16 to 32%, the share of their populations subsisting on less than US$2.15 per day fell from 40% to under 11%. Over 1.5 billion people were lifted out of extreme poverty.
    Since 1995, per capita incomes in low- and middle-income countries have nearly tripled, and global per capita income increased by approximately 65 percent.
    For the first time since the industrial revolution two centuries earlier, per capita incomes in rich and poor countries began to converge.
    Gains for poor countries did not come at the expense of rich ones. Examining the United States since 1950, researchers at the Peterson Institute for International Economics (PIIE) have shown that international trade boosted the economy by the equivalent of $2.6 trillion in 2022, or about 10% of GDP. The gains from trade would be even larger for small, open advanced economies.
    In a Foreign Affairs piece this year, Dev Patel, Justin Sandefur, and Arvind Subramanian called the years between 1990 and the start of COVID-19 pandemic in 2020, I quote, “history’s most golden period of economic development”.   They argue that the rapid increase in trading opportunities was “perhaps the most important enabler” of convergence.
    Research from our new World Trade Report backs them up: the pace of income convergence of low- and middle-income economies is strikingly correlated with their participation in global trade, as measured by a size-adjusted ratio of trade to GDP. Our simulations suggest falling trade costs account for as much as one-third of the convergence.
    To be clear, the period was not golden for everyone. Developing countries with lower trade participation or greater commodity-dependence – mostly in Africa, Latin America and the Caribbean, and the Middle East – lagged on convergence. And in some rich countries, many people felt left behind, and their frustration started to fuel a political backlash against trade.
    Multilateral rule-making on trade began to falter, with the failure of the Doha Round of WTO negotiations.
    Nevertheless, in 2008 and 2009, when the world economy faced its worst financial crisis since the 1930s, the system worked.
    International markets stayed broadly open. The rules and norms of the multilateral trading system helped governments contain protectionist pressures.
    Alongside fiscal and monetary support, trade was a powerful shock absorber. Crisis-hit countries could rely on predictable market access elsewhere to absorb their excess supply, preventing growth and development from getting derailed.
    The WTO, the World Bank, and the IMF also worked together productively on the macro-micro policy nexus.
    For instance, when trade finance dried up during the credit crunch, despite being extremely low-risk, the three institutions joined hands to encourage G20 members and international financial institutions to step in with a $250 billion support package.
    Since the financial crisis, the multilateral trading system, with the WTO at its core, has continued to deliver economic benefits, despite rising geopolitical tensions and tariffs between the US and China, the disabling of the Appellate Body, and the failure to reach agreements in long-running negotiations such as those on agriculture. Global trade kept reaching new highs through the 2010s, and over 75% of global goods trade continued – and continues today – to operate on core WTO tariff terms.
    When COVID-19 hit in 2020, the norms and rules of the multilateral trading system mostly did their job again. Trust in trade was damaged by initial missteps, as governments enacted export restrictions on medical supplies and vaccines. But governments generally refrained from widespread protectionism, allowing food and other essentials to flow across borders to where they were needed. Goods trade rebounded strongly from the lockdowns and was soon setting new records. Cross-border supply chains churned out products needed to fight the pandemic, from face masks to vaccines. Trade in digitally-delivered services boomed, propelled by the same technologies that allowed so many of us to work from home.
    Goods and especially services trade are now well above pre-COVID levels.  Last year, global trade was worth a near-record $30.5 trillion, in a $105-trillion world economy.
    Re-imagining the Multilateral Trading System with coherence
    As we saw at the outset, however, these successes did not forestall the challenges we now face in global trade. While trade has been largely resilient, signs of fragmentation are now visible.
    So it’s not difficult to imagine a return of vicious circles – trade restrictions, efficiency losses, slower growth, higher prices, costs imposed by extreme weather and food insecurity, and public frustration and anger.
    Allowing the vicious circles to take hold and the world to fragment into isolated trading blocs would be costly. The WTO has estimated longer term global GDP losses in the order of 5% were the world to fragment into two like-minded trading blocs. IMF estimates are in the order 7%. We cannot afford this!
    And that is why we need to re-imagine the multilateral trading system to solve modern challenges and address modern vulnerabilities.
    This means re-imagining coherence as well. Trade alone was insufficient in 1944, and trade alone is insufficient to build the more secure, sustainable, and inclusive world we want today.  The way forward for trade will increasingly be about “WTO and” – trade in tandem with other issues, and policies that support the original vision of coherence and do not misuse trade tools, for coercion, as a weapon, or to undermine competition.
    Our unfinished business from 1944 was elegantly illustrated by a recent blog post from IMF chief economist Pierre-Olivier Gourinchas and his team.
    They showed that China’s growing and contentious trade surplus, and the US’s widening trade deficit, are the result of domestic macro-economic forces, rather than the product of trade and industrial policies.
    “Homegrown surpluses and deficits call for homegrown solutions,” they argued, suggesting demand-boosting measures in China and fiscal consolidation in the US.
    As for concerns over industrial policy, they said the right response was to strengthen WTO rules, not to restrict trade.
    They cited the WTO’s recent China Trade Policy Review which showed new data of billions of dollars in subsidies going to manufacturing. Urging China to be more transparent about its subsidies.
    The blog shows the coherence mandate in action but it also illustrates how even today, the global trading system is paying a price for shortcomings of macro-economic policy.
    As Sylvia Ostry, one of my predecessors at this podium, said in 1987, “Trade policy is no substitute for macro policy.”
    Let’s now turn to the new trade agenda, and look at three areas where future prospects for people and the planet require trade to be re-imagined, and complemented by other policy levers pulling in the same direction.
    First, the environmental agenda, above all climate change and getting to net zero by mid-century.
    Trade is indispensable to deploy low-carbon technologies globally. Trade lets countries share the burden of developing new green tech. Scale economies and competitive pressures associated with trade help drive down unit costs, making it possible for renewables to undercut fossil fuel energy.
    Trade also allows us to leverage ‘green comparative advantage’, a concept that our chief economist, Ralph Ossa, has done much to advance. The idea is straightforward: just as individuals and countries can reap economic gains by specializing in what they are relatively good at, the world can reap environmental gains if countries specialize in what they are relatively green at.
    If countries with abundant clean energy can produce more energy-intensive goods and services, while importing energy-light products from places where clean energy is scarce, and vice versa, global emissions fall much more than they would have absent that trade. And in fact research from the University of Zurich  suggests that as much as one-third of global emissions reductions could come from this kind of specialization linked to green comparative advantage.
    As Ricardo Hausmann at Harvard has observed, fossil fuels are cheap to transport, but wind and solar energy are not. This makes parts of Africa, Central Asia, and Latin America with high green energy potential attractive destinations for investment in energy-intensive industries, including the production of green hydrogen.
    Global cooperation on internalizing carbon costs would incentivize greener sourcing everywhere. Nevertheless, we are already seeing moves in the right direction as in Kenya, which has attracted a billion-dollar investment to build a geothermal-powered low-carbon data center.
    Parenthetically, a similar dynamic exists for water, provided it is valued correctly. A recent report of the Global Commission on the Economics of Water, which I co-chair, shows that with trade one can also promote the notion of a hydrological comparative advantage. Trade can help mitigate water scarcity by allowing countries with abundant hydrological resources to specialize in producing water-intensive products for export to water-scarce nations.  Such virtual water trade offers agricultural export opportunities, for example, to those regions including countries in Africa with under-utilized ground water resources and land.
    But just as environmental policy coordination could accelerate climate action, policy fragmentation could weaken it.  There is a genuine risk that trade frictions associated with carbon pricing, green subsidies, and other climate policies will escalate into trade restrictions and retaliation, harming emissions reduction as well as trade.
    We should seek to pre-empt such frictions and disputes by establishing shared frameworks for trade and climate policy. The goal would be to maximize emissions reduction and green innovation, while minimizing negative spillovers, trade tensions, and wasted public resources on subsidy races that most countries may not even afford to participate in.
    To this end, the WTO Secretariat is coordinating a carbon pricing task force comprised of the IMF, World Bank, OECD, UNCTAD, and UNFCCC, where we are working to develop shared carbon metrics and ultimately a global carbon pricing framework against which we can benchmark national policies to aid interoperability of approaches. We have also joined hands with the IMF, the OECD, and the World Bank to explore approaches to enhance greater transparency with respect to subsidies. And we are working with the steel industry to help them promote interoperability in decarbonization standards, reducing transaction costs and facilitating trade and investment in green steel.
    Reforming the over $1.2 trillion in direct global annual fossil fuel subsidies, the $630 billion in trade-distorting agricultural support, and the $22 billion in harmful fisheries subsidies (which the WTO Fisheries Subsidies Agreement is delivering) should be a no-brainer. Some of the resources freed up could be repurposed to support green innovation and a just transition for poor countries.
    The second set of opportunities for the Multilateral Trading System deals with diversifying and decentralizing supply chains – and doing so in a manner that brings in countries and communities that remain on the margins of the global division of labor.
    More diversified global production networks would enhance supply security in an increasingly shock-prone world, while extending the benefits of trade to places and people that have not shared adequately in them. Greater diversification would also help lower the geopolitical temperature around supply chain relationships, by making them harder for any single country to weaponize.
    As the pandemic and the war in Ukraine made abundantly clear, overconcentration makes supply chains vulnerable in a crisis.
    The advent of COVID-19, concentrated minds on the fact that 80% of world vaccine exports came from only ten countries. This meant export restrictions in a few of them severely disrupted global access to vaccines – especially to Africa, which relied on imports for 99% of its jabs.
    Decentralizing value chains and building up pharmaceutical production capacity in Africa and other developing country regions for instance would make the global supply base more resilient in the event of future pandemics, whilst more closely integrating these regions in to world trade, and making them part of a more prosperous and healthy world.
    Critical minerals is another sector where there are major opportunities to mitigate concerns about overconcentration in mining and especially processing, while stimulating growth in developing countries. 
    Exports of minerals critical for the low-carbon transition, like lithium, cobalt, nickel, and rare earths, have grown rapidly to reach USD 320 billion in value in 2022, and are set to increase much more in the years ahead. Africa, for example, represents 40% of estimated global reserves of cobalt, manganese, and platinum; and 12% of world exports of critical minerals, but only 3.8% of exports of processed minerals.
    By investing in processing these minerals within the regions including in Central Asia and Latin America where they are found, we can promote value addition and job creation while removing supply bottlenecks that currently threaten to hold back the low-carbon transition.
    Furthermore, to the extent that this process is powered by green hydrogen and other kinds of clean energy, it would harness the green comparative advantage I mentioned earlier and thereby help the developing regions increase their share in world trade.
    It would be green growth and green trade – the ‘re-globalization’ we want.
    Finally, there are areas where cross-border commerce is flourishing, but where new rules are necessary to foster predictability and lower barriers to entry for smaller businesses and developing economies.
    The fastest growing segment of international trade is in services delivered across borders via computer networks. Trade in digitally-delivered services – everything from streaming video to remote consulting – has quadrupled since 2005, reaching $4.25 trillion in value last year. These services have become an increasingly important driver of growth and job creation.
    The commercialization of artificial intelligence promises to further accelerate digital trade. A forthcoming WTO report describes how AI could reduce trade and transaction costs, improve supply chain logistics, and shift countries’ comparative advantages.
    I always say the future of trade is digital, but the future of protectionism could be as well. Imports of digital services could become as contentious as manufactured imports have, or more so – inviting digital barriers that are even simpler to put in place than their counterparts for trade in physical goods.
    Putting in place some basic rules for digital trade would reduce the risks of such reversals. The 90-odd members participating in plurilateral e-commerce negotiations at the WTO are now looking to conclude a first phase agreement on a series of practical measures to facilitate digital trade, from common rules for e-signatures and payments, to paperless trading, and consumer protection. Tougher issues like cross-border data flows – a critical element in AI – will be dealt with in a second phase of negotiations.
    Delivering on this agenda for the future will involve strengthening all of the WTO’s functions: monitoring and transparency, negotiations, and dispute settlement.
    With respect to our dispute settlement system, we are working to reform it. The reform process has wide buy-in, and talks are advancing, including on issues like appeal review and accessibility to ensure that developing countries can use the system. There are delicate issues here around how national security exceptions will be handled – it is going to take work!
    We will need to negotiate and implement new rules in important areas like the environment. Some members are showing the way: New Zealand, Costa Rica, Switzerland, and Iceland recently agreed to liberalize trade in a list of hundreds of environmental goods, and they are trying to get others to join.
    We are working on getting an Agreement on Investment Facilitation for Development, negotiated by three-quarters of our membership, into the WTO rulebook. This agreement will help developing economies attract FDI by simplifying investment-related procedures and sweeping away red tape.
    We will also need to review existing rules to make them fit for purpose. Instead of members doing an end run around our Agreement on Subsidies and Countervailing Measures to introduce industrial policies, it would be better to update that agreement. It actually dates back to 1994 – seven years before China joined the WTO,  [a time when climate concerns were barely on the radar screen, and the conventional wisdom was that state-owned enterprises were a fading relic of a bygone era]. Members could decide to create space for subsidizing the green transition. Shared ground rules would help minimize negative spillovers and related trade tensions, while maximizing efficiency in the use of public resources. 
    Excellencies, ladies, and gentlemen. Let me now conclude.
    As I said at the start, these are tense times for trade. There are political dynamics outside our control. But we can treat the challenges we face as opportunities to re-imagine the global trading system.
    We can build global resilience whilst making the system more supportive of inclusive growth and environmental sustainability.
    We can make existing trade rules more fit for purpose rather than go around or against them and we can make new rules fit for the time.
    We can help developing countries left behind by the recent wave of global economic integration.
    We can have interdependence without overdependence.
    While nothing is ever easy at the WTO, we are moving in the right direction. We will manage what we can manage. Control what we can control. But we will need your help.
    Over the past eight decades, the multilateral economic architecture, including the trading system, has delivered a great deal for the world. We have reinvented it before. We can do so again, for people and planet.
    Nelson Mandela once wrote that “after climbing a great hill, one only finds that there are many more hills to climb.” I ask you, let’s climb these hills together.
    Thank you.

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    MIL OSI Economics

  • MIL-Evening Report: 5 things you can do to end the biodiversity crisis as the world talks about it at COP16

    Source: The Conversation (Au and NZ) – By Jim Radford, Associate Professor, Ecology and Environment, La Trobe University

    The world is charging towards tipping points for species extinctions, ecosystem collapse and loss of genetic diversity. Crossing these tipping points will be devastating for nature and human existence alike.

    Avoiding this catastrophe of humanity’s making is the purpose of the 16th Conference of the Parties to the United Nations Convention on Biological Diversity (COP16) in Cali, Colombia. COP16 has been reviewing progress on implementing the Global Biodiversity Framework adopted at COP15 in Montreal, Canada, in 2022. Progress has been incremental at best.

    These pledges, plans and goals, while necessary and commendable, are also far removed and often intangible for everyday citizens. Collective global action is inherently political. It moves at glacial pace when urgent action is needed.

    The issues can seem so colossal and complex that individuals often feel powerless. This may mean they do nothing or, worse, add to the problem. But, in fact, there are five steps individuals can take to help end the biodiversity crisis.

    So why isn’t government action enough?

    COP16 wraps up on November 1, but has so far failed to live up to expectations. The COP16 chair claims it has put biodiversity “on an equal footing” with climate. However, solid commitments have yet to emerge.

    For example, before COP16, governments had pledged only US$250 million (A380 million) of the estimated $200 billion per year required by 2030 for the Global Biodiversity Framework Fund. Pledges of another $163 million this week take the total number of contributors to a mere 12.

    Only 15% of countries (including Australia) met the deadline to submit their plans to meet the goals set at COP15. These include protecting at least 30% of the world’s land and water and restoring 30% of degraded ecosystems by 2030.

    And plans do not guarantee action. Indeed, the world has never achieved a single global nature target set by such initiatives.

    Our everyday decisions can’t be divorced from nature

    “Natural capital” is a buzzword in global initiatives, government policies, marketing slogans and sustainability frameworks worldwide. Natural capital refers to all living and non-living natural resources that provide products and services of value to society. In essence, it’s what we commonly call “nature”.

    Understanding and managing natural capital is crucial for conserving biodiversity, addressing climate change and ensuring future generations’ wellbeing by not exceeding our planetary boundaries. It’s why we’ve recently created the Natural Capital Primer. It’s a website that explains how our everyday lives, businesses and economies depend on nature.

    By understanding our connection to nature, we can all reduce our impact on nature. Here are five ways you can make a difference, starting today.

    The Natural Capital Primer explains the concept, aiming to shift attitudes toward nature and promote global conservation.

    1. Cut consumption when you can

    Do you really need to update your mobile phone, your summer wardrobe or your flat-screen TV? What we buy reverberates around the globe.

    Our demand for new products affects resource extraction (leading to habitat loss), carbon emissions (propelling climate change) and pollution (degrading habitat). These impacts are often far from where we make our purchases. From the lithium in our phones to the plastics in our clothes and the metals in our vehicles, our consumption drives demand, which almost inevitably harms biodiversity.

    If you do need to replace something, consider buying second-hand or products made from recycled materials.

    2. Watch what you eat

    Agriculture is the single greatest driver of changes in land use and biodiversity loss. We all need to eat, of course, but where possible buy local and sustainably produced foods.

    Reducing processed foods in your shopping trolley is a good start. Cutting your intake of over-fished, wild-caught seafood, red meat and palm oil-based products will also help. This issue is not straightforward because these products are available as a confusing mix of unsustainable and sustainable options.

    A further complication, made worse by the rise of greenwashing, is that it can be hard to work out exactly what is in certain foods or where they came from. Sustainability certification and apps (GoodFish Australia, for example) can help consumers make better choices.

    3. Choose renewable energy

    The climate and biodiversity crises are inseparable. Neither can be resolved in isolation. For example, nature-based solutions, such as protecting forests as carbon sinks, will help with both the climate crisis and biodiversity.

    With greenhouse gas emissions driving climate change, which threatens many species, a whole range of our choices determine the impacts of our energy use. From your mode of transport to powering your home, choose renewable energy sources.

    Tech giants such as Google and Amazon are turning to nuclear energy to power their generative AI and cloud storage in an effort to reduce their climate impact. However, 100% renewable energy is realistic if consumers demand it from their power companies and governments.

    4. Get your hands dirty

    You can take direct action to protect and increase biodiversity. Volunteer or donate to environmental projects in your neighbourhood. Not only will this make you feel good, but revegetation and habitat restoration do improve local biodiversity.

    Many grass-roots, community-driven projects are making a difference on the ground. They range from urban restoration work, such as the Merri Creek restoration in Melbourne, to forest stewardship projects, such as Tarwin River Forest in Gippsland, Victoria. Get local and get involved!

    5. Adjust expectations and accept responsibility

    People in wealthy countries (such as Australia) have both the biggest environmental footprints and the most capacity to adapt. They must lead change.

    The process starts with increasing awareness of the issues and taking responsibility for change. That includes adjusting our expectations about how and where we live.

    Small changes are magnified when repeated by millions of people. We should never doubt the power of cumulative impact. After all, it’s what got us into this mess in the first place.

    So while governments and corporations haggle, posture and delay over global targets and policies, we can all start right now to make a difference through smarter decisions and sustainable choices.

    Jim Radford receives funding from Australian Department of Climate Change, Energy, Environment and Water, the National Environmental Science Program Resilient Landscapes Hub, Transport for NSW, SmartSat CRC, Macdoch Foundation and Australian Wool Innovation. He is a member of Standards Australia Biodiversity Committee and North Central CMA Science Advisory Panel.

    ref. 5 things you can do to end the biodiversity crisis as the world talks about it at COP16 – https://theconversation.com/5-things-you-can-do-to-end-the-biodiversity-crisis-as-the-world-talks-about-it-at-cop16-242205

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Canada: Federal government reinforces our defence capacity and creates good-paying jobs for Canadians

    Source: Government of Canada News

    News release

    October 31, 2024  –  Gatineau, Quebec –  Public Services and Procurement Canada

    The federal government is committed to ensuring members of the Royal Canadian Navy (RCN) have the equipment they need to complete their missions and assert Canada’s sovereignty.

    Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, on behalf of the Honourable Bill Blair, Minister of National Defence, announced that the federal government has awarded a contract valued at up to $1.85 billion (including taxes) to Lockheed Martin Canada (LMC) for the renewal of combat system integration in-service support (CSI ISS) for the Halifax-class frigates.

    The renewal of this contract will ensure continued CSI service support until the end-of-life expectancy is reached for the Halifax-class frigates, coinciding with the gradual arrival of the new fleet of River-class destroyer ships. This contract is estimated to contribute $76 million annually to Canada’s gross domestic product and to support up to 680 good-paying jobs annually across the Canadian economy.

    The Halifax-class patrol frigates are the backbone of Canada’s maritime operational capability. The investments announced today will keep Canada’s sovereignty resolute by monitoring Canadian waters and airspace, facilitating large-scale search and rescue activities, providing emergency assistance and supporting global peace and security operations.

    Quotes

    “This contract with Lockheed Martin Canada underscores the federal government’s commitment to supporting the Royal Canadian Navy and ensuring it has the equipment it needs to assert Canada’s sovereignty and protect Canadians. The contract will ensure continued combat system integration services to the Halifax-class frigates, which remain the foundation of the Royal Canadian Navy until the gradual arrival of the River-class destroyers.”

    The Honourable Jean-Yves Duclos
    Minister of Public Services and Procurement and Quebec Lieutenant

    “This contract is not only an investment in our Navy, it is also an investment in Canadian industry and workers. The Royal Canadian Navy’s fleet of Halifax-class frigates are the backbone of maritime operations at home and abroad. This in-service support contract will ensure our frigates remain operationally effective until the arrival of our future fleet of River-class destroyers.”

    The Honourable Bill Blair
    Minister of National Defence

    “Our government is making a crucial investment to ensure that Canada’s naval capabilities remain strong. The combat management system 330 is an export success story, as this Canadian-made solution has been adopted by several allied navies. Through the support announced today, the government is helping the Royal Canadian Navy maintain the highest standards of operational readiness and is contributing to jobs, innovation and economic growth across the country.”

    The Honourable François-Philippe Champagne
    Minister of Innovation, Science and Industry

    Quick facts

    • The initial CSI ISS contract was awarded through a competitive procurement process to LMC in November 2008. The contract included 2 additional 3-year option periods, which have both been exercised. 

    • The initial CSI ISS contract will ensure ongoing maintenance and updates to the combat management system (CMS) 330 until November 6, 2024. 

    • The new CSI ISS contract provides ongoing maintenance, updates and other specialized supports for the CMS 330 onboard the RCN’s 12 Halifax-class frigates. The services also include support for associated shore-based engineering, training and testing.

    • This service support will be from November 2024 to March 2034. The contract includes 13 additional 1‑year option periods, which could extend the contract up to March 2047. 

    • The CMS 330 is the central component of the integrated combat system fitted on the Halifax-class ships. It’s a system designed to integrate and control the various sensors, weapons and information sources of the ships to optimize situational awareness and decision-making.

    • As the original manufacturer of the CMS 330, LMC holds the intellectual property rights necessary to make modifications and add new capabilities and functionalities to this software. LMC has also not licensed or authorized other parties to perform updates to this software. For these reasons, LMC is the only provider capable of meeting all the requirements of the CSI ISS contract, ensuring the RCN can continue to pursue its national and security operations. 

    • These in-service support activities are performed in Halifax, Nova Scotia, Esquimalt, British Columbia, and at various locations in the National Capital Region.

    • Canada’s Industrial and Technological Benefits Policy applies to this project. This requires that LMC provide business activities into the Canadian economy equal to the value of its contract with Canada. 

    Associated links

    Contacts

    Mathis Denis
    Press Secretary and Senior Communications Advisor
    Office of the Honourable Jean-Yves Duclos
    343-573-1846
    mathis.denis@tpsgc-pwgsc.gc.ca

    Media Relations
    Public Services and Procurement Canada
    819-420-5501
    media@pwgsc-tpsgc.gc.ca

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    MIL OSI Canada News

  • MIL-OSI: Bimini Capital Management Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    VERO BEACH, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) — Bimini Capital Management, Inc. (OTCQB: BMNM), (“Bimini Capital,” “Bimini,” or the “Company”), today announced results of operations for the three-month period ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income of $0.3 million, or $0.03 per common share
    • Book value per share of $0.83
    • Company to discuss results on Friday, November 1, 2024, at 10:00 AM ET

    Management Commentary

    Commenting on the third quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The long-awaited impacts of tight monetary policy orchestrated by the Federal Reserve appear to have finally had the desired impacts on inflation and the imbalances in the labor market. Inflation is closing in on the Fed’s 2% target and hiring and wage growth are slowing while the unemployment rate has steadily risen. In contrast, growth in the economy and consumer spending have remained robust throughout. In late September the Fed reduced the overnight funding rate by 50 basis points, and the market anticipated it was the first of many such cuts.  Unfortunately, the non-farm payroll report for September 2024, released in early October, as well as the latest readings on inflation and consumer spending, imply the economy may not be weakening so much after-all. If this proves to be the case the magnitude and urgency of additional rate cuts by the Fed may differ with those market expectations mentioned above.

    “Orchid Island Capital reported net income for the third quarter 2024 of $17.3 million and its shareholders equity increased from $555.9 million to $656.0 million. As a result, Bimini’s advisory service revenues of approximately $3.3 million represented a 4% increase over the second quarter. The growth in Orchid’s capital base during the third quarter would translate into higher quarterly revenues – all else equal – for a full quarter. As mentioned above, if the Fed’s easing cycle proves to be brief and the economy remains resilient, capital raising opportunities for Orchid may not materialize in the near term.

    “The investment portfolio generated net interest income of $0.3 million inclusive of dividends on our shares of Orchid Island. Mark to market gains and losses on our MBS portfolio, hedge positions and shares of Orchid netted to income of $0.4 million. The Company – inclusive of both the advisory services segment and the investment portfolio segment, recorded net income before taxes for the quarter of $0.8 million versus a net loss before taxes of $0.2 million for the second quarter of 2024.”

    Details of Third Quarter 2024 Results of Operations

    The Company reported net income of $0.3 million for the three-month period ended September 30, 2024. Advisory service revenue for the quarter was $3.3 million. We recorded interest and dividend income of $1.7 million and interest expense on repurchase agreements of $1.4 million and on long-term debt of $0.6 million. We recorded an unrealized $0.1 million mark to market loss on our shares of Orchid common stock, net unrealized gains of $2.5 million on our MBS portfolio and net losses of $2.0 million on our derivative holdings. The results for the quarter also included operating expenses of $2.6 million and an income tax provision of $0.5 million.

    Management of Orchid Island Capital, Inc.

    Orchid is managed and advised by Bimini. As Manager, Bimini is responsible for administering Orchid’s business activities and day-to-day operations. Pursuant to the terms of the management agreement, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended September 30, 2024, Bimini’s statement of operations included a fair value adjustment of $(0.1) million and dividends of $0.2 million from its investment in Orchid’s common stock. Also, during the three months ended September 30, 2024, Bimini recorded $3.3 million in advisory services revenue for managing Orchid’s portfolio consisting of $2.4 million of management fees, $0.6 million in overhead reimbursement and $0.2 million in repurchase, clearing and administrative fees.

    Book Value Per Share

    The Company’s Book Value Per Share on September 30, 2024 was $0.83. The Company computes Book Value Per Share by dividing total stockholders’ equity by the total number of shares outstanding of the Company’s Class A Common Stock. At September 30, 2024, the Company’s stockholders’ equity was $8.3 million, with 10,005,457 Class A Common shares outstanding.

    Capital Allocation and Return on Invested Capital

    The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio (“PT MBS”) and the structured MBS portfolio, consisting of interest only (“IO”) and inverse interest-only (“IIO”) securities. The table below details the changes to the respective sub-portfolios during the quarter.

       
    Portfolio Activity for the Quarter
                Structured Security Portfolio        
                    Inverse                
        Pass   Interest   Interest                
        Through   Only   Only                
        Portfolio   Securities   Securities   Sub-total   Total
    Market Value – June 30, 2024   $ 83,960,741     $ 2,450,477     $ 3,501     $ 2,453,978     $ 86,414,719  
    Securities purchased     31,715,015                         31,715,015  
    Return of investment     n/a       (84,011 )     (162 )     (84,173 )     (84,173 )
    Pay-downs     (2,097,231 )     n/a       n/a       n/a       (2,097,231 )
    Discount accreted due to pay-downs     16,953       n/a       n/a       n/a       16,953  
    Mark to market gains     2,453,793       4,468       5,106       9,574       2,463,367  
    Market Value – September 30, 2024   $ 116,049,271     $ 2,370,934     $ 8,445     $ 2,379,379     $ 118,428,650  
                                             

    The tables below present the allocation of capital between the respective portfolios at September 30, 2024 and June 30, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended September 30, 2024. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.

       
    Capital Allocation
                Structured Security Portfolio        
                    Inverse                
        Pass   Interest   Interest                
        Through   Only   Only                
        Portfolio   Securities   Securities   Sub-total   Total
    September 30, 2024                                        
    Market value   $ 116,049,271     $ 2,370,934     $ 8,445     $ 2,379,379     $ 118,428,650  
    Cash equivalents and restricted cash     5,706,502                         5,706,502  
    Repurchase agreement obligations     (113,022,999 )                       (113,022,999 )
    Total(1)   $ 8,732,774     $ 2,370,934     $ 8,445     $ 2,379,379     $ 11,112,153  
    % of Total     78.6 %     21.3 %     0.1 %     21.4 %     100.0 %
    June 30, 2024                                        
    Market value   $ 83,960,741     $ 2,450,477     $ 3,501     $ 2,453,978     $ 86,414,719  
    Cash equivalents and restricted cash     6,223,538                         6,223,538  
    Repurchase agreement obligations     (82,875,999 )                       (82,875,999 )
    Total(1)   $ 7,308,280     $ 2,450,477     $ 3,501     $ 2,453,978     $ 9,762,258  
    % of Total     74.9 %     25.1 %     0.0 %     25.1 %     100.0 %
                                             

    The returns on invested capital in the PT MBS and structured MBS portfolios were approximately 7.5% and 2.1%, respectively, for the three months ended September 30, 2024. The combined portfolio generated a return on invested capital of approximately 6.2%.

       
    Returns for the Quarter Ended September 30, 2024
                Structured Security Portfolio        
                    Inverse                
        Pass   Interest   Interest                
        Through   Only   Only                
        Portfolio   Securities   Securities   Sub-total   Total
    Interest income (expense) (net of repo cost)   $ 71,254     $ 40,897     $ (15 )   $ 40,882     $ 112,136  
    Realized and unrealized gains     2,470,746       4,468       5,106       9,574       2,480,320  
    Hedge losses     (1,991,315 )     n/a       n/a       n/a       (1,991,315 )
    Total Return   $ 550,685     $ 45,365     $ 5,091     $ 50,456     $ 601,141  
    Beginning capital allocation   $ 7,308,280     $ 2,450,477     $ 3,501     $ 2,453,978     $ 9,762,258  
    Return on invested capital for the quarter(1)     7.5 %     1.9 %     145.4 %     2.1 %     6.2 %
    (1)   Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage.
         

    Prepayments

    For the third quarter of 2024, the Company received approximately $2.2 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 6.3% for the third quarter of 2024. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

                 
        PT   Structured    
        MBS Sub-   MBS Sub-   Total
    Three Months Ended   Portfolio   Portfolio   Portfolio
    September 30, 2024   6.3   6.7   6.3
    June 30, 2024   10.9   5.5   10.0
    March 31, 2024   18.0   9.2   16.5
    December 31, 2023   8.9   4.6   8.0
    September 30, 2023   4.3   6.6   4.8
    June 30, 2023   8.0   13.0   9.6
    March 31, 2023   2.4   10.3   5.0
                 

    Portfolio

    The following tables summarize the MBS portfolio as of September 30, 2024 and December 31, 2023:

    ($ in thousands)                                    
                                Weighted    
                Percentage           Average    
                of   Weighted   Maturity    
        Fair   Entire   Average   in   Longest
    Asset Category   Value   Portfolio   Coupon   Months   Maturity
    September 30, 2024                                    
    Fixed Rate MBS   $ 116,050       98.0 %     5.61 %     342     1-Apr-54
    Structured MBS     2,379       2.0 %     2.85 %     283     15-May-51
    Total MBS Portfolio   $ 118,429       100.0 %     5.24 %     341     1-Apr-54
    December 31, 2023                                    
    Fixed Rate MBS   $ 90,181       97.3 %     6.00 %     343     1-Nov-53
    Structured MBS     2,550       2.7 %     2.84 %     290     15-May-51
    Total MBS Portfolio   $ 92,731       100.0 %     5.44 %     341     1-Nov-53
    ($ in thousands)                                
        September 30, 2024   December 31, 2023
                Percentage of           Percentage of
    Agency   Fair Value   Entire Portfolio   Fair Value   Entire Portfolio
    Fannie Mae   $ 35,338       29.8 %   $ 38,204       41.2 %
    Freddie Mac     83,091       70.2 %     54,527       58.8 %
    Total Portfolio   $ 118,429       100.0 %   $ 92,731       100.0 %
        September 30, 2024   December 31, 2023
    Weighted Average Pass Through Purchase Price   $ 102.99     $ 104.43  
    Weighted Average Structured Purchase Price   $ 4.48     $ 4.48  
    Weighted Average Pass Through Current Price   $ 102.06     $ 101.55  
    Weighted Average Structured Current Price   $ 13.68     $ 13.46  
    Effective Duration(1)     2.627       2.508  
    (1)   Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 2.627 indicates that an interest rate increase of 1.0% would be expected to cause a 2.627% decrease in the value of the MBS in the Company’s investment portfolio at September 30, 2024. An effective duration of 2.508 indicates that an interest rate increase of 1.0% would be expected to cause a 2.508% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2023. These figures include the structured securities in the portfolio but not the effect of the Company’s hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.
         

    Financing and Liquidity

    As of September 30, 2024, the Company had outstanding repurchase obligations of approximately $113.0 million with a net weighted average borrowing rate of 5.20%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $118.8 million. At September 30, 2024, the Company’s liquidity was approximately $4.7 million, consisting of unpledged MBS and cash and cash equivalents.

    We may pledge more of our structured MBS as part of a repurchase agreement funding but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at September 30, 2024.

    ($ in thousands)                                
    Repurchase Agreement Obligations
                        Weighted   Weighted
        Total           Average   Average
        Outstanding   % of   Borrowing   Maturity
    Counterparty   Balances   Total   Rate   (in Days)
    Marex Capital Markets Inc.   $ 26,185       23.2 %     5.21 %     17  
    Mirae Asset Securities (USA) Inc.     20,016       17.7 %     5.25 %     18  
    DV Securities, LLC Repo     19,930       17.6 %     5.06 %     28  
    Clear Street LLC     17,894       15.8 %     5.31 %     33  
    South Street Securities, LLC     17,126       15.2 %     5.03 %     24  
    Mitsubishi UFJ Securities, Inc.     11,872       10.5 %     5.37 %     25  
        $ 113,023       100.0 %     5.20 %     24  
    (1)   Equal to the fair value of securities sold (including accrued interest receivable) and cash posted as collateral, if any, minus the sum of repurchase agreement liabilities, accrued interest payable and securities posted by the counterparty (if any).
         

    Summarized Consolidated Financial Statements

    The following is a summarized presentation of the unaudited consolidated balance sheets as of September 30, 2024, and December 31, 2023, and the unaudited consolidated statements of operations for the nine and three months ended September 30, 2024 and 2023. Amounts presented are subject to change.

     
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED BALANCE SHEETS
    (Unaudited – Amounts Subject to Change)
                 
        September 30, 2024   December 31, 2023
    ASSETS                
    Mortgage-backed securities   $ 118,428,650     $ 92,730,852  
    Cash equivalents and restricted cash     5,706,502       4,470,286  
    Orchid Island Capital, Inc. common stock, at fair value     4,677,763       4,797,269  
    Accrued interest receivable     572,506       488,660  
    Deferred tax assets, net     17,995,449       19,047,680  
    Other assets     4,251,713       4,063,267  
    Total Assets   $ 151,632,583     $ 125,598,014  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Repurchase agreements   $ 113,022,999     $ 86,906,999  
    Long-term debt     27,373,739       27,394,417  
    Other liabilities     2,912,616       3,168,857  
    Total Liabilities     143,309,354       117,470,273  
    Stockholders’ equity     8,323,229       8,127,741  
    Total Liabilities and Stockholders’ Equity   $ 151,632,583     $ 125,598,014  
    Class A Common Shares outstanding     10,005,457       10,005,457  
    Book value per share   $ 0.83     $ 0.81  
                     
     
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited – Amounts Subject to Change)
                 
        Nine Months Ended September 30,   Three Months Ended September 30,
        2024   2023   2024   2023
    Advisory services   $ 9,396,828     $ 10,518,862     $ 3,300,512     $ 3,620,002  
    Interest and dividend income     4,781,408       2,781,763       1,690,252       1,111,659  
    Interest expense     (5,558,657 )     (3,624,861 )     (1,980,863 )     (1,441,371 )
    Net revenues     8,619,579       9,675,764       3,009,901       3,290,290  
    Other income (expense)     1,067,454       (2,466,795 )     420,726       (2,360,590 )
    Expenses     8,439,314       6,657,293       2,627,343       2,105,424  
    Net income (loss) before income tax provision (benefit)     1,247,719       551,676       803,284       (1,175,724 )
    Income tax provision (benefit)     1,052,231       (320,596 )     547,059       (757,016 )
    Net income (loss)   $ 195,488     $ 872,272     $ 256,225     $ (418,708 )
                                     
    Basic and Diluted Net (Loss) Income Per Share of:                                
    CLASS A COMMON STOCK   $ 0.02     $ 0.09     $ 0.03     $ (0.04 )
    CLASS B COMMON STOCK   $ 0.02     $ 0.09     $ 0.03     $ (0.04 )
        Three Months Ended September 30,
    Key Balance Sheet Metrics   2024   2023
    Average MBS(1)   $ 102,421,681     $ 74,315,815  
    Average repurchase agreements(1)     97,949,499       71,055,794  
    Average stockholders’ equity(1)     8,195,116       13,199,138  
                     
    Key Performance Metrics                
    Average yield on MBS(2)     5.80 %     4.51 %
    Average cost of funds(2)     5.61 %     4.68 %
    Average economic cost of funds(3)     5.75 %     4.74 %
    Average interest rate spread(4)     0.19 %     (0.17 )%
    Average economic interest rate spread(5)     0.05 %     (0.23 )%
    (1)   Average MBS, repurchase agreements and stockholders’ equity balances are calculated using two data points, the beginning and ending balances.
    (2)   Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/repurchase agreement balances and are annualized for the quarterly periods presented.
    (3)   Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average repurchase agreements.
    (4)   Average interest rate spread is calculated by subtracting average cost of funds from average yield on MBS.
    (5)   Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on MBS.
         

    About Bimini Capital Management, Inc.

    Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.

    Forward Looking Statements

    Statements herein relating to matters that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.’s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements.

    Earnings Conference Call Details

    An earnings conference call and live audio webcast will be hosted Friday, November 1, 2024, at 10:00 AM ET. Participants can register and receive dial-in information at https://register.vevent.com/register/BI909b06944b334b3e8e769108f5807eab. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/qzvibaf6 or via the investor relations section of the Company’s website at https://ir.biminicapital.com. An audio archive of the webcast will be available for 30 days after the call.

    The MIL Network

  • MIL-OSI USA: U.S. Rep Angie Craig Announces $330,750 to Increase Domestic Biofuels in Lakeville

    Source: United States House of Representatives – Congresswoman Angie Craig (MN-02)

    Lakeville, MN – Today, U.S. Representative Angie Craig announced $330,750 in federal grant funding for the Mega Stop Inc., a truck stop in Lakeville, to help expand their access to homegrown biofuels.

    This funding comes as a Higher Blends Infrastructure Incentives Program grant, which is part of a $239 million investment, made in the Inflation Reduction Act, to increase the availability of domestic biofuels in 18 states and give Americans cleaner, more affordable fuel options. 

    “Bolstering domestic biofuel production supports Minnesota’s family farmers and lowers prices at the pump for working Minnesotans – it’s a win-win for everybody,” said Rep. Craig. “I was proud to work to pass the Inflation Reduction Act and I’ll keep working to invest in the all-of-the-above energy approach we need to lower energy costs and combat climate change.”

    The Inflation Reduction Act, which passed in 2022 with Rep. Craig’s support, made the largest investment ever in homegrown biofuels infrastructure.

    ###

    MIL OSI USA News

  • MIL-OSI New Zealand: Trade Deals – Gulf State trade deal to grow economy – BusinessNZ

    Source: BusinessNZ

    BusinessNZ welcomes the opportunity for New Zealand business to access new markets and grow our economy through a Free Trade Agreement (FTA) with the Gulf States.
    Chief Executive Katherine Rich says the new high-quality FTA between New Zealand and the Gulf Cooperation Council will be welcome news to those looking to grow their business overseas.
    “New Zealand has a strong reputation for exports which are sought after in the Gulf States – things like high-quality agriculture, food and beverage, as well as other goods. This FTA gives preferential access for our primary sector exporters and streamlined customs processes.
    “This deal will help meet the ambitious target set by this Government to double export value by 2034. The Gulf States are home to some 54 million people who have good incomes and sophisticated tastes, so there are plenty of opportunities for Kiwi exporters to expand into the region.
    “This FTA also sends an important global signal at a time of increasing protectionism, that some countries are still embracing open economies and free trade – which is for the mutual benefit of their consumers and citizens.
    “BusinessNZ acknowledges the hard work our negotiators have put into making this deal a reality and look forward to further growing our economy through overseas trade.
    The Gulf Cooperation Council Nations include: Bahrain, Kuwait , Oman, Qatar, Saudi Arabia, UAE
    The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Save the Children – World more dangerous than ever for children with crimes in conflict at highest ever in 2023

    Source: Save the Children

    The number of grave violations committed against children in war rose 15% in 2023 to the highest level since reporting started in 2005 with the biggest increases in Sudan and the occupied Palestinian territory, according to new report by Save the Children [1].
    The report Stop the War on Children – Pathways to Peace  analysed the number of verified grave violations against children in conflict since such records began, with the crimes including killing, maiming and abduction, sexual violence, recruitment into armed groups, attacks on schools and hospitals, and denial of humanitarian access to children.
    The report found 31,721 documented cases of grave violations against children [2] in conflict took place in 2023, which equated to an average of 86 crimes against children per day, eclipsing the previous record set in 2022.
    The largest total number of crimes were committed in the occupied Palestinian territory where 8,434 grave violations were verified – a quarter of the total number – and a 170% jump on the year before. This was followed by the Democratic Republic of Congo (with 3,805 verified cases, up from 2,420 cases in 2022) and Somalia (with 2,290 verified cases, slightly down from 2,783 cases in 2022).
    The biggest relative increase in grave violations was recorded in Sudan, where cases increased fivefold since 2022 from 317 cases to 1,759 cases.
    An horrific 11,338 cases of killing and maiming of children in conflict were documented around the world in 2023, representing a 31% rise compared to the previous year. This was the equivalent to an average of 31 children per day – an entire classroom – losing their life or being maimed. More than a third were Palestinian children.
    Incidents of denial of humanitarian access – another grave violation against children in conflict – also reached an historic high with 5,158 incidents in 2023, compared to 3,931 the previous year – and more than 11 times higher than a decade ago. The occupied Palestinian territory recorded 3,250 incidents of denial of humanitarian access in 2023, the highest number ever recorded in any conflict setting.
    The report also revealed that the last three decades have witnessed a staggering increase in the number of children living under the weight of war, with the number reaching 473 million children – or 19% of the world’s child population – in 2023 [3]. This share has nearly doubled from around 10% of the world’s child population in the mid-1990s, as children’s right to protection in conflict continued to be obliterated [4]
    The report analysed global military spending and found it rose to $2.4 trillion in 2023 – or more than the entire GDP of Italy – while investments in peace and conflict prevention dwindled. The economic impact of violence, including the costs of prevention, containment, and addressing its consequences, has steadily risen, reaching $19.1 trillion in purchasing power parity (PPP) terms in 2023.
    Sharmarke-, a 12-year-old boy living in Puntland, Somalia, lost his brother in the ongoing conflict in his homeland and yearns for peace. He said:
    “If I had one wish, it would be for peace in Somalia. Peace is something that we have been without for so long that many of us don’t even know what it feels like. I wish for a country where families like mine don’t have to run from their homes in fear, where children can go to school without being afraid. Somalia has been broken by war, and it’s time for us to heal.”
    Inger Ashing, CEO of Save the Children International, said:
    “This report is devastating and leaves no doubt that the world is getting more dangerous for children. For so much of humanity we have seen progress on children’s rights and their protection, but in countries at war, the situation is sharply declining.
    “We are seeing global military spending continuing to climb, while investments in conflict prevention are on the decline. The consequences of this misplaced focus are devastating. Ongoing conflicts in the DRC, occupied Palestinian territory, Sudan, and Ukraine, and so many other countries, have witnessed a horrific escalation in attacks against children, schools, and hospitals.
    “These violations have ignited a global outcry and yet we haven’t seen any real and meaningful pledges for peace.
    “States must take action. They need to uphold standards of conduct in conflict. They must hold perpetrators to account. They must protect humanitarian access. They need long term plans for peace. And they need to support children’s resilience and recovery. The future of millions of children depends on immediate and decisive global action.”
    Gudrun Østby, Research Professor at the Peace Research Institute Oslo, said:
    “The documented cases of crimes against children in conflict zones are horrific, yet these figures likely only scratch the surface. With an estimated 473 million children-or 19% globally -living in conflict areas, each of these children has a unique story and conflict experience.”
    “Over the past few decades, the number of children living in conflict settings has risen steadily. The global share of children at risk due to conflict has nearly doubled since the 1990s. Now, more than ever, the need to protect the millions of children in conflict zones is both critical and urgent.”
    Save the Children’s analysis also uncovered an alarming number of UN member states have signed onto less than half of the international legal and political instruments that provide protection children in conflict. As many as 43 UN members, or more than 20%, many of which are involved in armed conflict, have failed to sign or endorse more than six of the twelve instruments, showing a large gap in commitment to child protection. At the same time, arms sales continue to fuel conflicts, with weapons being transferred to actors notorious for violating children’s rights [5].
    Peaceful childhoods are a critical part of building peaceful societies. As government leaders and civil society, including activists, survivors, and young people, prepare to meet at the inaugural Global Ministerial Conference on Violence Against Children in Colombia next month, this report highlights the urgent need for intensified global action to combat violence against children in conflict and build a safer future for children worldwide. Despite the degradation of the rules-based order, there are reasons for optimism, including advancements in accountability, effective implementation practices, and growing popular mobilization for peace and safety for children.
    NOTES:
    • [1] Analysis by Save the Children of the 2024 United Nations annual report of the Secretary-General on children and armed conflict, based on data reported and verified in 2023. The analysis also draws on previous Save the Children mapping of the number of grave violations in the reports on children and armed conflict from 2005-23. Unlike the annual UN reports on children and conflict, we have included verified incidents of military use of hospitals and schools under the grave violation attacks on schools and hospitals when we add up the grave violations in each conflict setting.
    • [2] The six grave violations against children: the UN Security Council has identified six grave violations against children in situations of armed conflict: killing and maiming of children; recruitment or use of children in armed forces and groups; rape and other forms of sexual violence against children; abduction of children; attacks against schools and hospitals; and denial of humanitarian access to children. These grave violations were defined on the basis of their egregious nature and their severe impact on children’s wellbeing. In addition to the six violations, the annual UN has verified cases of detention of children since 2012 and presented them in the report.
    • [3] Updated data on the number of children living in conflict zones conducted by the Peace Research Institute (PRIO), Oslo based on Uppsala Conflict Data Program’s Georeferenced Event Dataset (UCDP GED) cross-referenced with population data from Gridded Population of the World (GPW) and from the UN (2023).
    • [4] Figure 2, page 5. The share was 9,7% in 1995.
    • [5] Including the Safe Schools Declaration, Paris Commitments and the Explosive Weapons in Populated Areas (EWIPA) declaration.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Environment – Coral pulled up by NZ trawler “environmental vandalism” says Greenpeace

    Source: Greenpeace

    Revelations that a New Zealand trawler has destroyed kilograms of deep sea corals in a region of the South Pacific earmarked for protection, illustrates exactly why New Zealand must stop bottom trawling these international waters, says Greenpeace Aotearoa.
    A New Zealand trawler, The Tasman Viking which is owned by Westfleet, pulled up several species of deep sea coral while trawling in international waters of the Tasman Sea last month.
    The coral ‘encounter’ happened on Lord Howe Rise, a region renowned for diverse marine life including corals, sponges, whales and seabirds, triggering an international fishing rule that will see the area temporarily closed to trawling and countries with a fisheries interest in the area notified.
    Greenpeace campaigner Ellie Hooper says this latest coral destruction by a New Zealand trawler is an embarrassment, calling it yet another example of how destructive bottom trawling is and why it must be banned.
    “It’s reckless environmental vandalism to bulldoze coral, an essential building block for ocean life, especially in the middle of a biodiversity crisis”, says Hooper.
    “New Zealand trawlers are the last, and only boats still bottom trawling the South Pacific high seas. As a country, we’re an outlier on this issue, flying in the face of the New Zealand public, who want bottom trawling banned from vulnerable areas, and the opinion of our international neighbours.
    “If we want a healthy planet, and marine life to thrive, New Zealand must stop bottom trawling seamounts and other vulnerable areas in the South Pacific.”
    Last year Westfleet, which is partly owned by Sealord, was fined over $52,000 and The Tasman Viking convicted following an incident where rare bamboo coral, pulled up in trawl nets, was illegally released overboard before a fisheries observer had a chance to properly document it.
    The incident also happened in the Lord Howe Rise region, and despite the conviction, The Tasman Viking, was given a new high seas trawling permit in June 2024
    The waters around Lord Howe Rise are rich and abundant, and include a chain of seamounts or underwater mountains that are home to a variety of marine life from coral to whales and seabirds including the antipodean albatross.
    Greenpeace and allies are calling for one of the world’s first global ocean sanctuaries to be created in this region, with the Australian government taking a step forward towards this goal in announcing a science symposium on the site for 2025.
    “While other nations are progressing with protecting the high seas from harm, New Zealand is dragging behind, still permitting bottom trawling in these precious areas, despite other countries pushing for them to be closed,” says Hooper.
    “To give the ocean a chance to recover and thrive, the New Zealand government must end the countries’ bottom trawling operation in the South Pacific high seas, and get with the programme on protection.”Scientists agree that to help stave off the worst of the climate crisis at least 30% of the world’s oceans must be protected from industrial harms by 2030. Creating global ocean sanctuaries in international waters, those areas outside of any one country’s jurisdiction, will play a crucial role in achieving this 30×30 goal. A recent report released by Greenpeace International shows that urgent action is needed to create marine protected areas. At the current rate of protection it would take till 2107 to reach the 30×30 goal.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Celebrating a Golden History – Ōkārito population quintuples to celebrate Tohu Whenua status

    Source: Tohu Whenua

    This week, 150 people gathered in Ōkārito (population = 30) for the area’s official Tohu Whenua launch – a recognition acknowledging Ōkārito as one of Aotearoa New Zealand’s must-dos. The Ōkārito Community Association, Ngāti Māhaki and Te Rūnanga o Makaawhio gathered for the official launch with representatives from Tohu Whenua, Heritage New Zealand Pouhere Taonga, Department of Conservation Te Papa Atawhai, Manatū Taonga Ministry for Culture and Heritage and Minister for Arts, Culture and Heritage; Hon Paul Goldsmith.
     

    With school students from Franz Josef Glacier School, Whataroa School and Hokitika Primary School in attendance, the launch celebrated the diverse history of a place of harvest, conservation and goldrush that now offers unique opportunities for visitors to connect with history and wildlife.  
     
    What is Tohu Whenua?

    Tohu Whenua is a free itinerary of places to visit and explore history where it happened. Other Tohu Whenua sites in the Te Tai Poutini region include the Hokitika Port, Commercial and Government Centre, Historic Reefton, Te Kopikopiko o te Waka and Denniston, Waiuta and Brunner Mine. Home to Te Tai Poutini West Coast’s oldest known building and the ancient Ōkārito lagoon, Tohu Whenua is thrilled to welcome Ōkārito into its growing itinerary.

    “Tohu Whenua sites provide unique opportunities to encounter and interact with the history that has created Aotearoa New Zealand’s story. Ōkārito has layers of fascinating history and we are thrilled to welcome it into our growing network.” Andrew Coleman, Manahautū/Chief Executive of Heritage New Zealand Pouhere Taonga and Chair of the Tohu Whenua Governance Group.

    A recent survey commissioned by Tohu Whenua revealed that 78% of New Zealanders surveyed want to learn more about NZ history and many indicated a specific interest in Māori heritage. There are already many information panels around Ōkārito that tell the goldrush and conservation stories of the area, which inspired Tohu Whenua to work alongside Te Rūnanga o Makaawhio to install a new information panel that tells the mana whenua story of the area.

    “Ōkārito holds a special place in the history of Ngai Tahu and also our earlier whakapapa of Ngati Wairangi, Patea and Waitaha, and so Ngati Mahaki are thrilled to be part of this,” Te Runanga o Makaawhio chairman Paul Madgwick says.”Tohu Whenua is fitting recognition for the mana of this place. Several pā and kāinga here testify to centuries of occupation — and war — plus Ōkārito was renowned far and wide for its whare wananga for learning the traditions and lore of Te Tai Poutini.”
    There are a number of ways to experience Ōkārito including beautiful walks featuring rimu, rata and silver pine forests and the popular 4.3km Ōkārito Trig walk. The Ōkārito Lagoon can be explored via walk, boat or kayak – giving you a breathtakingly close experience with over 70 species of birds, including the rare kōtuku/white heron, along with panoramic views of the Southern Alps. Tohu Whenua will also encourage visitors to visit the iconic Donovan’s Store, Ōkārito Wharf and boatshed and bookable accommodation including the Ōkārito Community Campground and the Ōkārito Schoolhouse – which is managed as a historic asset by the Department of Conservation Te Papa Atawhai.  

    “The rich human history combined with the stunning natural environment at Ōkārito make it one of the feature spots of Te Wāhipounamu. Today – with the area being part of Predator Free South Westland – the mauri of the natural environment is being restored, making it a “must do” place for New Zealanders to visit and connect with both nature and our history.” Wayne Costello, Operations Manager, South Westland District, Department of Conservation Te Papa Atawhai

    To learn more about visiting Ōkārito and other sites on the Tohu Whenua itinerary, visit www.tohuwhenua.nz

    Tohu Whenua background information:

    Tohu Whenua is a partnership between Heritage New Zealand Pouhere Taonga, Department of Conservation Te Papa Atawhai and Manatū Taonga Ministry for Culture and Heritage.

    MIL OSI New Zealand News

  • MIL-OSI USA: Disaster Recovery Center Opens in Polk County

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center Opens in Polk County

    Disaster Recovery Center Opens in Polk County

    RALEIGH, N.C. –  A Disaster Recovery Center (DRC) will open Friday, Nov. 1 in Mill Spring (Polk County) to assist North Carolina survivors who experienced loss from Tropical Storm Helene.  The Polk County DRC is located at:  Polk County Recreation Complex (Parking Lot)235 Wolverine TrailMill Spring, NC 28756Open: 8 a.m. – 7 p.m., Monday through SundayA DRC is a one-stop shop where survivors can meet face-to-face with FEMA representatives, apply for FEMA assistance, receive referrals to local assistance in their area, apply with the U.S. Small Business Administration (SBA) for low-interest disaster loans and much more.  FEMA financial assistance may include money for basic home repairs, personal property losses or other uninsured, disaster-related needs, such as childcare, transportation, medical needs, funeral or dental expenses. To find additional DRC locations, go to fema.gov/drc or text “DRC” and a zip code to 43362. Additional recovery centers will open soon. All centers are accessible to people with disabilities or access and functional needs and are equipped with assistive technology.   Homeowners and renters in 39 North Carolina counties and tribal members of the Eastern Band of Cherokee Indians can visit any open center, including locations in other states. No appointment is needed.  It is not necessary to go to a center to apply for FEMA assistance. The fastest way to apply is online at DisasterAssistance.gov or via the FEMA app. You may also call 800-621-3362. If you use a relay service, such as video relay, captioned telephone or other service, give FEMA your number for that service. 
    barbara.murien…
    Thu, 10/31/2024 – 19:29

    MIL OSI USA News

  • MIL-OSI USA: Casey Trees Workers Vote to Unionize and Prepare for First Contract Negotiations

    Source: US GOIAM Union

    Casey Trees Workers in Washington, D.C. voted in August to unionize with the IAM in a 22-6 vote. Casey Trees was started in 2001 with the goal of restoring, enhancing, and protecting the Capitol’s canopy. In addition to beautifying the District, a robust tree canopy helps lower temperatures on streets and surrounding buildings in the summer, can reduce flooding after storms, and absorbs pollution year round.

    With negotiations coming up soon, workers are collectively deciding their bargaining priorities. The unit includes the public facing Tree Operations department as well as Admin, Education, Communications & Development, and Policy & Land Conservation departments that make the work possible before a shovel ever hits the ground.

    Urban Forester and Tree Planter, Shaveen Roberts, hopes for better pay amidst rising housing costs and more days off during severe inclement weather. Like his coworkers, he enjoys landscaping and working outside. Too often, management takes the love workers have for their professions for granted, excluding them from the decisions that affect them most or making them feel unappreciated. By becoming union members, Casey Trees workers have gained the voice they were seeking, while remaining fulfilled in their work.

    Jonathan Carney, Urban Forester at Casey Trees, helps determine appropriate places to plant trees in DC. In addition to positive environmental and health impacts, adding trees, he says, can add a “sense of place” to otherwise unremarkable pockets of the city. Carney likes his work and wanted a union to codify the aspects of the jobs he enjoys. “Being in a union is for the betterment of all working people.” 

    Michael Carter, Crew Member of three years and DC native, enjoys the ability to plant trees where he’s grown up. Carter was elected to the negotiation committee, where he helps relay concerns from all teams to management. “We’re in the planning stage where we’re trying to get our ideas together, and decide the things we want and are entitled to.”

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    MIL OSI USA News

  • MIL-OSI Submissions: GAZA – Detention of MSF Dr Mohammed Obeid and several medical staff from Kamal Adwan Hospital, North Gaza – MSF

    Source: Médecins Sans Frontières/Doctors Without Borders (MSF)

    1st November, 2024. Médecins Sans Frontières/Doctors Without Borders (MSF) has received confirmation that Dr Mohammed Obeid, an MSF orthopedic surgeon, has been detained by Israeli forces along with several medical staff from Kamal Adwan hospital in north Gaza during a military operation at the hospital on 26 October. We are extremely alarmed by the detention of our colleague.

    Dr Obeid has been working tirelessly since the beginning of the war, offering his support as a doctor to multiple hospitals in Gaza. His work has saved countless lives. 

    Our last contact with Dr Obeid was on the afternoon of 25 October. He had been sheltering and offering his support as a surgeon at Kamal Adwan hospital when it was besieged by Israeli forces. 
    We have officially requested information from the Israeli authorities on Dr Obeid’s detention status, his current location, and any information regarding his physical and mental well-being.

    Prior to his detention Dr Obeid shared this testimony describing the situation in the hospital:

    “There is death in all types and forms in Kamal Adwan hospital and north Gaza. The bombardment does not stop. The artillery does not stop. The planes do not stop. There is heavy shelling, and the hospital is targeted too. It just looks like a movie; it does not seem real.

    About five days ago, my house was hit. They completely blew up the roof and water tanks, but we were at the ground floor and only one person got injured, thank God. We left a few times, moving to different areas, my family and neighbors were terrified. I sheltered in Kamal Adwan hospital with my wife and children, and I am now working here, where I can treat numerous patients.

    There are no words to describe the situation in Kamal Adwan hospital: it is disastrous. The hospital is completely overwhelmed. There are injured people everywhere, outside and inside the hospital, and we do not have medical and surgical equipment to treat them.

    Ambulances cannot move. We cannot reach the bodies of the people killed and cannot save the injured ones who lie in the streets. Many of them died before reaching the hospital, and others died inside the hospital as we could not treat their wounds.

    We have 30 people dead inside the hospital, and around 130 injured patients who need urgent medical care. Medical staff are exhausted, and many are injured as well. We feel hopeless. I just don’t have words.

    We call on all the countries in the world to consider north Gaza, and to lift the blockade that has led to the death of so many people.”

    MSF calls for the safety and the protection of our colleague, and for all medical staff in Gaza who work under impossible conditions and are facing horrific violence as they try to provide care.

    MSF Australia was established in 1995 and is one of 24 international MSF sections committed to delivering medical humanitarian assistance to people in crisis. In 2022, more than 120 project staff from Australia and New Zealand worked with MSF on assignment overseas. 

    MSF delivers medical care based on need alone and operates independently of government, religion or economic influence and irrespective of race, religion or gender. For more information visit msf.org.au  

    MIL OSI – Submitted News

  • MIL-OSI USA: Hageman Files Amicus Brief in Support of Fourth Amendment Rights

    Source: United States House of Representatives – Wyoming Congresswoman Harriet Hageman

    Washington, DC – Today, Congresswoman Harriet Hageman, joined by Senators Cynthia Lummis, R-WY, Rand Paul, R-KY, and Ron Wyden, D-OR, and Representatives Dan Bishop, R-NC, Thomas Massie, R-KY, and Nikema Williams, D-GA, filed an amicus brief in the case of Martin v United States, a Federal Tort Claims Act (FTCA) challenge against the U.S. due to a wrongful raid conducted by the FBI. 

    Representative Hageman stated, “When the government infringes upon a citizen’s Constitutional rights there must be methods of redress for those who were wronged. The FBI clearly violated the Fourth Amendment rights of Ms. Martin and her family, and it is critically important that they have legal redress. Congress has provided Americans with an avenue to protect their individual natural, including those and victims of wrongful federal law enforcement raids. Courts have no right to ignore those protections in order to arbitrarily grant immunity to the FBI, and in doing so in this case the appellate judges have blatantly subverted the laws enacted by Congress. The FBI must be held accountable for the physical and emotional damages it inflicted by wrongfully raiding Curtrina Martin’s home.”

    Background: 

    • In 2017, as part of an anti-gang operation, FBI agents executed a warrant for a specific gang member, raiding the wrong home of Curtrina Martin. Martin, her child, and boyfriend were awoken when agents detonated a flash grenade and ripped the door off its hinges. Her boyfriend was handcuffed, and Martin held at gunpoint. After the FBI noticed it was at the wrong address, the agents ended the raid without explanation. 
    • Congress enacted the FTCA in 1946 to allow U.S. persons to sue the federal government for torts, including harms that result in legal liability, committed by persons acting on behalf of the government. Congress expanded this accountability measure in the 1970s to address federal law enforcement actions in response to a series of wrongful drug raids on innocent persons.  
    • Ms. Martin filed for redress against the United States under the FTCA, alleging violation of Fourth Amendment rights. The 11th circuit dismissed her claims on a faulty application of the Constitution’s Supremacy Clause. If allowed to stand, this decision would effectively gut the FTCA, and the accountability it provides, for not just Curtrina Martin, but all Americans, and would deal a serious blow to the separation of powers that underpins our Constitutional republic. 

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    Contact: Chris Berardi, Sr. Advisor/Communications Director

    MIL OSI USA News

  • MIL-OSI USA: Bergman Leads on Call for Election Integrity in Michigan

    Source: United States House of Representatives – Congressman Jack Bergman (MI-1)

    Today, Representative Jack Bergman led Michigan Republican Members of Congress in sending a letter to Michigan Secretary of State Jocelyn Benson demanding answers on Michigan’s elections and urging her to protect election integrity.

    Following reports of a Chinese national University of Michigan student – who is not a U.S. citizen – casting a ballot for the upcoming Presidential election, Rep. Jack Bergman, joined by Reps. John Moolenaar, Bill Huizenga, Tim Walberg, John James, and Lisa McClain, wrote a letter to Secretary Jocelyn Benson outlining their concerns and demanding answers on this issue.

    You can read the letter here or below:

    Secretary Benson:

    As you know, the State of Michigan will play a pivotal role in next week’s election, potentially deciding who will become the 47th President of the United States and which party will control the United States Congress.

    On October 22, 2024, you made the following statement: “Let me be clear: We have secure elections in Michigan.” Furthermore, you testified before the Committee on House Administration on September 11, 2024, stating there is “no evidence non-citizens are voting.” And yet, according to a recent report by The Detroit News, a University of Michigan student who is a Chinese national – and not a U.S. citizen – allegedly cast a ballot for the upcoming presidential election. The report goes on to note that his ballot will be counted.

    Only U.S. citizens are legally permitted to vote in federal elections. You acknowledged this fact during a recent interview on CNN, noting that “Only US citizens can vote in our elections, and secure processes are in place in every state to ensure and reinforce that.” Clearly, this acknowledgement is at odds with the aforementioned report.

    Having instances of non-citizens voting, however isolated they may be, puts doubt into the minds of the millions of Michiganders who entrust you with ensuring our elections are secure, free, and fair, and that the results are valid.

    With this in mind, we would like you to answer the following questions:

    1. What steps is your office taking to verify the citizenship and residency of individuals registering to vote in Michigan to ensure only eligible voters participate in the upcoming election?

    2. Will you commit to prosecuting ineligible voters, like the Chinese University of Michigan student, to the fullest extent of the law?

    3. How is the Michigan Secretary of State’s office addressing potential risks related to ineligible individuals voting, and what security measures are in place to protect the integrity of the voter rolls?

    4. What avenues of recourse are available to ensure improper ballots are not counted? And will you pursue them?

    Please respond no later Friday, November 1, 2025, at 5 p.m.

    MIL OSI USA News

  • MIL-OSI USA: Ahead of Winter, Congresswoman Lee Announces $15 Million in Federal Investments to Lower Energy Costs in Nevada

    Source: United States House of Representatives – Congresswoman Susie Lee (NV-03)

    WASHINGTON – Today, Congresswoman Susie Lee (NV-03) announced that the Department of Health & Human Services (HHS) is delivering $15 million in Low Income Home Energy Assistance Program (LIHEAP) investments to help lower energy costs for low-income families ahead of the winter season.

    For more than 40 years, the LIHEAP program has provided federal assistance for families to protect their homes against hot summers and cold winters. LIHEAP helps prevent energy shutoffs, restore services, make minor energy-related home repairs, and weatherize homes to make them more energy efficient.

    The investment comes in part through the Bipartisan Infrastructure Law, which Lee helped negotiate and pass.

    “Lowering energy costs are top of mind for southern Nevadans, especially as temperatures start to drop this winter,”said Congresswoman Susie Lee. “Federal investments like this can give working families a little bit more breathing room. I’m glad that I could help play a part in delivering these investments through the Bipartisan Infrastructure Law.” 

     

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    MIL OSI USA News

  • MIL-OSI Security: Two sent to prison for roles in cartel-linked human smuggling scheme

    Source: Office of United States Attorneys

    LAREDO, Texas – Two individuals have been sentenced to prison for their roles in an extensive human smuggling conspiracy involving Cartel del Noreste (CDN), announced U.S. Attorney Alamdar S. Hamdani. 

    Laredo resident Francisco Suarez, 20, and Luis Daniel Segura Guzman, 26, a Mexican citizen residing in Laredo. Suarez pleaded guilty Dec. 20, 2023, and Jan. 18, respectively.    

    U.S. District Judge Diana Saldaña has now imposed a 33-month term of imprisonment for Suarez, while Segura received 30 months. Both must serve three years of supervised release following their sentences. Not a U.S. citizen, Guzman is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Suarez and Segura were a part of Los Fantasmas, a gang and alien smuggling organization who works hand-in-hand with Mexican cartels. Judge Saldaña imposed sentencing enhancements that held each responsible for smuggling at least 100 aliens or more. The court commented that both were “committed to this lifestyle” and noted the importance of imposing a sentence that would deter them from becoming involved in this conduct in the future.  

    Another co-conspirator Bernardo Aniceto Garza, 27, Laredo, also pleaded guilty and is set for sentencing Nov. 4.  

    “Cartel del Noreste, a Mexican cartel, is known for engaging in ruthless acts of violence and extortion to support its drug trafficking operations, and in recent years it has added human smuggling to its list of illicit money-making operations, with Facebook and social media becoming invaluable tools to facilitate its new venture,” said Hamdani. “CDN uses these platforms to recruit, coordinate and expand its criminal operations, reaching broader audiences, while putting countless lives at risk. For years, Suarez and Guzman used Facebook to exploit and profit from vulnerable individuals while also evading detection, but thanks to the efforts of my office, those days are now over.”

    On Aug. 23, 2023, authorities discovered a Facebook post that appeared to be advertising transportation services for undocumented aliens via sleeper cabs of tractor trailers. The investigation revealed Segura coordinated the transportation of three undocumented aliens for approximately $8,000 and arranged for a Garza to make the pickup in Laredo that afternoon.

    Authorities were able to apprehend Garza and found two women and a 15-year-old minor inside a parked tractor. All were citizens of Mexico and El Salvador and illegally present in the United States. Law enforcement also discovered a firearm inside the vehicle Garza was driving.   

    On Sept. 16, 2023, authorities encountered Segura in Laredo. He admitted the CDN had recruited him in Mexico to smuggle aliens and that he worked with Suarez to do so. Law enforcement located a cell phone in Segura’s possession that was still logged into the Facebook account used to advertise and coordinate the August smuggling event.  

    Suarez was acting as a scout in a separate smuggling attempt Sept. 19, 2023, when law enforcement arrested him. He admitted he worked for Garza and had provided him with the three migrants authorities caught Garza transporting. The investigation also identified Suarez as a stash house operator responsible for harboring undocumented individuals. 

    An analysis of Segura’s phone revealed his involvement in the smuggling of at least 133 undocumented individuals. Historical data and messages traced Segura’s smuggling activities back to May 2020. The phone also contained detailed information, including photographs and identifying information of suspected migrants, screenshots of smuggling routes and deposit receipts for payments tied to smuggling services. 

    Authorities found similar information on Suarez’s cell phone which included photos of approximately 300 unique individuals illegally smuggled across the border, including children, dating back to September 2022. 

    The men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. 

    Homeland Security Investigations, Laredo Police Department and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation with the assistance of Customs and Border Protection Air and Marine Operations and the Texas Department of Public Safety. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. 

    This sentencing is also the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border including the Southern District of California, districts of Arizona and New Mexico and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Adminstration and other partners. To date, JTFA’s work has resulted in over 325 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling, more than 270 U.S. convictions, more than 210 significant jail sentences imposed and forfeitures of substantial assets.

    Assistant U.S. Attorney and JTFA detailee Jennifer Day prosecuted this case.

    MIL Security OSI

  • MIL-OSI Security: Camden County Man Convicted at Trial of Conspiring to Commit Arson of a Bucks County Warehouse

    Source: Office of United States Attorneys

    PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ramiz Duka, 61, of Cherry Hill, New Jersey, was convicted today at trial of conspiracy to commit arson.

    The facts at trial established that Duka recruited two men into a conspiracy to set fire to a warehouse located at 1388 Bridgewater Road in Bensalem, Pa., paying them $15,000 to do so. Over the course of several weeks, the three co-conspirators met and planned the arson.

    On December 10, 2022, one of the men recruited to the conspiracy by Duka set fire to the building. During fire suppression operations, one firefighter was seriously injured when a ladder collapsed. Damages from the fire totaled nearly $6 million.

    At sentencing, the defendant faces a mandatory minimum of five years of imprisonment, and a maximum possible sentence of 20 years in prison.

    The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bensalem Police Department, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz. Special thanks to the Bensalem Township Fire Rescue and the volunteer firefighter companies in and around Bensalem who responded to the fire.

    MIL Security OSI

  • MIL-OSI USA: Attorney General Bonta and Governor Newsom Issue Statements on Appellate Victory Against Huntington Beach’s Federal Challenge to State Housing Laws

    Source: US State of California

    Wednesday, October 30, 2024

    Contact: (916) 210-6000, agpressoffice@doj.ca.gov

    OAKLAND  California Attorney General Rob Bonta and Governor Gavin Newsom today issued the following statements in response to the unanimous decision by a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit affirming the district court’s dismissal of the City of Huntington Beach’s federal lawsuit challenging the constitutionality of state housing laws: 

    “I am pleased that yet another court has emphatically rejected Huntington Beach’s attempt to exempt itself from state housing laws,” said Attorney General Bonta. “While the City has been wasting the public’s time and money pursuing this meritless lawsuit, its neighboring communities — along with every Californian struggling to keep a roof over their heads or wondering where they’re going to sleep tonight — need Huntington Beach to step up and adopt a housing plan without further delay. My office will continue pursuing all remedies in the state case against the City, where the court has already determined the City violated the state’s Housing Element Law.”   

    “Today, yet another court has slapped down Huntington Beach’s cynical attempt to prevent the state from enforcing our housing laws,” said Governor Newsom. “Huntington Beach officials’ continued efforts to advance plainly unlawful NIMBY policies are failing their own citizens — by wasting time and taxpayer dollars that could be used to create much-needed housing. No more excuses — every city must follow state law and do its part to build more housing.”

    A copy of the decision can be found here.

    # # #

    MIL OSI USA News

  • MIL-OSI: Sound Financial Bancorp, Inc. Q3 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Oct. 30, 2024 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended September 30, 2024, or $0.45 diluted earnings per share, as compared to net income of $795 thousand, or $0.31 diluted earnings per share, for the quarter ended June 30, 2024, and $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2023. The Company also announced today that its Board of Directors declared a cash dividend on common stock of $0.19 per share, payable on November 26, 2024 to stockholders of record as of the close of business on November 12, 2024.

    Comments from the President and Chief Executive Officer

    “For the first time in our history, loans surpassed $900 million, and we continued to grow deposits. These production improvements came as we held operating expenses steady, demonstrating our ability to grow the Bank efficiently,” remarked Laurie Stewart, President and Chief Executive Officer. “We also completed a major upgrade to our online banking services and have received positive feedback on this from our clients,” concluded Ms. Stewart.

    “Net income increased 45% from the prior quarter primarily due to the improvement in our net interest margin, which was driven by the repricing and origination of new loans at higher market rates. At the same time, funding costs increased at a slower pace, as the majority of our deposits had already been repriced. We also made progress in transitioning time deposits to savings and money market accounts, which typically carry lower rates and provide more flexibility for future repricing,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “As always, we remain focused on maintaining strong asset quality. Non-performing loans decreased from the prior quarter-end and we are actively utilizing available remedies to address the remaining problem loans.”

    Q3 2024 Financial Performance
    Total assets increased $26.1 million or 2.4% to $1.10 billion at September 30, 2024, from $1.07 billion at June 30, 2024, and increased $70.8 million or 6.9% from $1.03 billion at September 30, 2023.     Net interest income increased $425 thousand or 5.7% to $7.9 million for the quarter ended September 30, 2024, from $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand or 3.6% from $8.2 million for the quarter ended September 30, 2023.
       
        Net interest margin (“NIM”), annualized, was 2.98% for the quarter ended September 30, 2024, compared to 2.92% for the quarter ended June 30, 2024 and 3.38% for the quarter ended September 30, 2023.
    Loans held-for-portfolio increased $12.5 million or 1.4% to $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024, and increased $26.3 million or 3.0% from $875.4 million at September 30, 2023.    
        An $8 thousand provision for credit losses was recorded for the quarter ended September 30, 2024, compared to a $109 thousand and a $75 thousand release of provision for credit losses for the quarters ended June 30, 2024 and September 30, 2023, respectively. At September 30, 2024, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.96% at both June 30, 2024 and September 30, 2023.
    Total deposits increased $23.4 million or 2.6% to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024, and increased $69.3 million or 8.1% from $860.9 million at September 30, 2023. Noninterest-bearing deposits increased $4.8 million or 3.8% to $129.7 million at September 30, 2024 compared to $124.9 million at June 30, 2024, and decreased $24.2 million or 15.7% compared to $153.9 million at September 30, 2023.    
        Total noninterest income increased $73 thousand or 6.3% to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand or 14.2% compared to the quarter ended September 30, 2023.
    The loans-to-deposits ratio was 97% at September 30, 2024, compared to 98% at June 30, 2024 and 102% at September 30, 2023.    
        Total noninterest expense decreased $58 thousand or 0.7% to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand or 0.4% from compared to the quarter ended September 30, 2023.
    Total nonperforming loans decreased $420 thousand or 4.7% to $8.5 million at September 30, 2024, from $8.9 million at June 30, 2024, and increased $6.7 million or 381.8% from $1.8 million at September 30, 2023. Nonperforming loans to total loans was 0.94% and the allowance for credit losses on loans to total nonperforming loans was 101.13% at September 30, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at September 30, 2024.
           
             

    Operating Results

    Net interest income increased $425 thousand, or 5.7%, to $7.9 million for the quarter ended September 30, 2024, compared to $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand, or 3.6%, from $8.2 million for the quarter ended September 30, 2023.The increase from the prior quarter was primarily due to a higher average yield on interest-earning assets, particularly loans receivable, and an increase in the average balances of both loans receivable and interest-earning cash. This was partially offset by a more modest rise in the cost of funds, as higher cost earnings interest-bearing deposits decreased by the end of the third quarter of 2024, limiting the growth in funding costs compared to the prior quarter. The decrease in net interest income compared to the same quarter one year ago was primarily due to higher funding costs, specifically, increased rates on and balances of money market and certificate accounts, partially offset by an increase in the average yield earned on interest-earning assets.

    Interest income increased $799 thousand, or 5.7%, to $14.8 million for the quarter ended September 30, 2024, compared to $14.0 million for the quarter ended June 30, 2024, and increased $2.2 million, or 17.0%, from $12.7 million for the quarter ended September 30, 2023. The increase from the prior quarter was primarily due to a higher average balance of loans and interest-bearing cash, along with a 14 basis point increase in the average loan yield, reflecting higher rates on newly originated loans and upward adjustments to rates on existing variable rate loans. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 41 basis point increase in the average yield on loans, a 20 basis point increase in the average yield on interest-bearing cash, and a seven basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments.

    Interest income on loans increased $556 thousand, or 4.5%, to $12.9 million for the quarter ended September 30, 2024, compared to $12.3 million for the quarter ended June 30, 2024, and increased $1.4 million, or 11.9%, from $11.5 million for the quarter ended September 30, 2023. The average balance of total loans was $898.6 million for the quarter ended September 30, 2024, up from $891.9 million for the quarter ended June 30, 2024 and $862.4 million for the quarter ended September 30, 2023. The average yield on total loans was 5.70% for the quarter ended September 30, 2024, up from 5.56% for the quarter ended June 30, 2024 and 5.29% for the quarter ended September 30, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the third quarter of 2023, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the third quarter of 2023. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and consumer loans, with the growth in consumer loans coming primarily from floating home loans. This was partially offset by a decline in construction and land loans. The average balances for commercial business loans and one-to-four family loans remained relatively flat from the second quarter of 2024. The increase in the average balance of loans during the current quarter compared to the third quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, and commercial business loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for the quarter ended September 30, 2024, compared to $133 thousand for the quarter ended June 30, 2024, and $139 thousand for the quarter ended September 30, 2023. Interest income on interest-bearing cash increased $244 thousand to $1.8 million for the quarter ended September 30, 2024, compared to $1.6 million for the quarter ended June 30, 2024, and increased $788 thousand from $1.0 million for the quarter ended September 30, 2023. These increases were due to higher average balances of interest-bearing cash, with the increase from the same quarter in the prior year also resulting from a higher average yield.

    Interest expense increased $374 thousand, or 5.7%, to $7.0 million for the quarter ended September 30, 2024, from $6.6 million for the quarter ended June 30, 2024, and increased $2.4 million, or 54.2%, from $4.5 million for the quarter ended September 30, 2023. The increase in interest expense during the current quarter from the prior quarter was primarily the result of a $38.8 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on these accounts, partially offset by a $13.9 million decrease in the average balance of certificate accounts. The increase in interest expense during the current quarter from the comparable period a year ago was primarily the result of a $9.8 million increase in the average balance of certificate accounts and a $148.1 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on all interest-bearing deposits. This was partially offset by a $46.3 million decrease in the average balance of demand and NOW accounts and a $2.8 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.74% for the quarter ended September 30, 2024, up from 2.67% for the quarter ended June 30, 2024 and 1.85% for the quarter ended September 30, 2023. The average cost of FHLB advances was 4.32% for both the quarters ended September 30, 2024 and June 30, 2024, and down from 4.38% for the quarter ended September 30, 2023.

    NIM (annualized) was 2.98% for the quarter ended September 30, 2024, up from 2.92% for the quarter ended June 30, 2024 and down from 3.38% for the quarter ended September 30, 2023. The increase in NIM from the prior quarter was result of an increase in interest income on interest-earning assets, partially offset by an increase in the cost of funding. The decrease in NIM from the quarter one year ago was primarily due to the cost of funding increasing at a faster pace than the yield earned on interest-earning assets, driven by the higher average balance of higher costing money market and certificate accounts.

    A provision for credit losses of $8 thousand was recorded for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand. This compared to a release of provision for credit losses of $109 thousand for the quarter ended June 30, 2024, consisting of a release of provision for credit losses on loans of $88 thousand and a release of provision for credit losses on unfunded loan commitments of $21 thousand, and a provision for credit losses of $75 thousand for the quarter ended September 30, 2023, consisting of a provision for credit losses on loans of $224 thousand and a release of the provision for credit losses on unfunded loan commitments of$149 thousand. The increase in the provision for credit losses for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 resulted primarily from growth in the loan portfolio and higher quantitative loss rates, which were influenced by a forecast of higher unemployment, and enhancements to the loss model, including an additional qualitative adjustment related to loan review. These adjustments were partially offset by decline in the balance of the construction loan portfolio, which typically has higher loss rates, and a decrease in the qualitative risk adjustment for construction loans as projects were completed and market conditions improved. Expected loss estimates consider various factors, such as market conditions, borrower -specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income increased $73 thousand, or 6.3%, to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand, or 14.2%, compared to the quarter ended September 30, 2023. The increase from the prior quarter was primarily related to a $217 thousand upward adjustment in fair value of mortgage servicing rights and a $52 thousand increase in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These gains were partially offset by a $133 thousand decrease in service charges and fee income, which was elevated in the prior quarter due to the recovery of potential future lost fee income due to vendor error. Additionally, there was a $34 thousand decrease in net gain on sale of loans, due to lower sales volume, and a $30 thousand decrease in gain on disposal of assets due to insurance claims on the loss of fully depreciated assets in second quarter of 2024. The increase in noninterest income from the comparable period in 2023 was primarily due to an $98 thousand increase in earnings on BOLI due to market rate fluctuations, and an $179 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate. These increases were partially offset by a $72 thousand decrease in service charges and fee income primarily due to a volume incentive paid by Mastercard in 2023, a $36 thousand decrease in net gain on sale of loans for reason similar to those noted above, and a decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Additionally, mortgage servicing income decreased by $15 thousand compared to the third quarter of 2023. Loans sold during the quarter ended September 30, 2024, totaled $2.4 million, compared to $4.0 million and $4.4 million of loans sold during the quarters ended June 30, 2024 and September 30, 2023, respectively.

    Noninterest expense decreased $58 thousand, or 0.7%, to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand, or 0.4%, from the quarter ended September 30, 2023. The decrease from the quarter ended June 30, 2024 was primarily a result of lower a $189 thousand decrease in salaries and benefits, primarily due to lower incentive compensation accruals. This was partially offset by an $157 thousand increase in data processing expenses, largely due to a vendor reimbursement received in the previous quarter for software implementation costs. Additionally, regulatory assessments declined $31 thousand due to a lower accrual for exam costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations, data processing, and occupancy expenses, which were partially offset by a $321 thousand increase in salaries and benefits. Operations expenses decreased due to reduction in loan originations costs, office expenses, marketing costs, legal fees, and charitable contributions, partially offset by an operational loss from a fraudulently obtained loan charged off in the third quarter of 2024. Data processing expenses decreased due to one-time costs related to new technology implemented in 2023, while occupancy expenses decreased primarily due fully amortized leasehold improvements. The increase in salaries and benefits compared to the third quarter of 2023 reflected higher incentive compensation, medical expenses, retirement plan costs, and directors’ fees (due to the addition of a new director), partially offset by lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at September 30, 2024 totaled $1.10 billion, an increase from $1.07 billion at June 30, 2024 and $1.03 billion at September 30, 2023. The increase in total assets from June 30, 2024 and one year ago was primarily due to an increase in cash and cash equivalents and in loans held-for-portfolio.

    Cash and cash equivalents increased $13.8 million, or 10.2%, to $148.9 million at September 30, 2024, compared to $135.1 million at June 30, 2024, and increased $47.0 million, or 46.2%, from $101.9 million at September 30, 2023. The increase from the prior quarter and from one year ago was primarily due to the increase in deposits exceeding the increase in loans held-for-portfolio.

    Investment securities increased $28 thousand, or 0.3%, to $10.2 million at September 30, 2024, compared to $10.1 million at June 30, 2024, and increased $17 thousand, or 0.2%, from $10.2 million at September 30, 2023. Held-to-maturity securities totaled $2.1 million at both September 30, 2024 and June 30, 2024, and totaled $2.2 million at September 30, 2023. Available-for-sale securities totaled $8.0 million at September 30, 2024, June 30, 2024 and September 30, 2023.

    Loans held-for-portfolio were $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024 and $875.4 million at September 30, 2023. The increase from to June 30, 2024, primarily resulted from growth in one-to-four family home loans, commercial and multifamily loans, as well as manufactured home and floating home loans, partially offset by decreases in construction and land loans and home equity loans. The increase in one-to-four family home loans was primarily due to new originations exceeding prepayments during the quarter, while the increase in commercial and multifamily loans primarily resulted from conversion of construction projects to permanent financing. The increase in manufactured home loans and floating home loans relates to continued strong demand for this type of financing in our market. The decrease in construction and land loans was primarily due to project completions and reduced demand caused by higher interest rates, which limited new financing opportunities. The decrease in home equity loans reflected normal payment fluctuations. Compared to September 30, 2024, the overall increase in loans held-for-portfolio was due to sustained strong loan demand and slower prepayment activity, with increases primarily related to commercial and multifamily loans, home equity loans, manufactured home loans and floating home loans.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $420 thousand, or 4.7%, to $8.6 million at September 30, 2024, from $9.0 million at June 30, 2024 and increased $6.3 million, or 268.2%, from $2.3 million at September 30, 2023. The decrease in NPAs from June 30, 2024 was primarily due to the payoff of three loans totaling $175 thousand and one loan totaling $421 thousand returning to accrual status, partially offset by the addition of eight loans totaling $260 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $7.7 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, a $2.4 million floating home loan, and a $985 thousand commercial real estate loan, all of which are well secured, and one manufactured home loan of $115 thousand that was repossessed in the first quarter of 2024. These additions were partially offset by the payoff of seven loans totaling $877 thousand, and normal payment amortization.

    NPAs to total assets were 0.78%, 0.84% and 0.23% at September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at September 30, 2024, compared to 0.96% at both June 30, 2024 and September 30, 2023. Net loan charge-offs for the third quarter of 2024 totaled $14 thousand, compared to $17 thousand for the second quarter of 2023, and $3 thousand for the third quarter of 2023.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 745     $ 822     $ 835     $ 1,108     $ 1,137  
    Home equity loans   338       342       83       84       86  
    Commercial and multifamily   4,719       5,161       4,747             306  
    Construction and land   25       28       29             78  
    Manufactured homes   230       136       166       228       151  
    Floating homes   2,377       2,417       3,192              
    Commercial business   23                   2,135        
    Other consumer   32       3       1       1       4  
    Total nonperforming loans   8,489       8,909       9,053       3,556       1,762  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily               575       575       575  
    Manufactured homes   115       115       115              
    Total OREO and repossessed assets   115       115       690       575       575  
    Total NPAs $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   8.7 %     9.1 %     8.5 %     26.9 %     48.7 %
    Home equity loans   3.9       3.8       0.9       2.0       3.7  
    Commercial and multifamily   54.8       57.2       48.7             13.1  
    Construction and land   0.3       0.3       0.3             3.3  
    Manufactured homes   2.7       1.5       1.7       5.5       6.4  
    Floating homes   27.6       26.8       32.8              
    Commercial business   0.3                   51.7        
    Other consumer   0.4                         0.2  
    Total nonperforming loans   98.7       98.7       92.9       86.1       75.4  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily               5.9       13.9       24.6  
    Manufactured homes   1.3       1.3       1.2              
    Total OREO and repossessed assets   1.3       1.3       7.1       13.9       24.6  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,493     $ 8,598     $ 8,760     $ 8,438     $ 8,217  
    (Release of) Provision for credit losses during the period   106       (88 )     (106 )     337       224  
    Net charge-offs during the period   (14 )     (17 )     (56 )     (15 )     (3 )
    Balance at end of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 245     $ 266     $ 193     $ 557     $ 706  
    (Release of) Provision for credit   (98 )     (21 )     73       (364 )     (149 )
    Balance at end of period   147       245       266       193       557  
    Allowance for Credit Losses $ 8,732     $ 8,738     $ 8,864     $ 8,953     $ 8,995  
    Allowance for credit losses on loans to total loans   0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses to total loans   0.97 %     0.98 %     0.99 %     1.00 %     1.03 %
    Allowance for credit losses on loans to total nonperforming loans   101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Allowance for credit losses to total nonperforming loans   102.86 %     98.08 %     97.91 %     251.77 %     510.50 %
     

    Deposits increased $23.4 million, or 2.6%, to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024 and increased $69.3 million, or 8.1%, from $860.9 million at September 30, 2023. The increase in deposits compared to the prior quarter-end was primarily a result of an increase of $17.0 million related to one new depositor relationship, as well as a $5.3 million increase in related party money market deposits. Compared to a year ago, the increase was primarily a result of an increase in certificate accounts and money market accounts, including $50.2 million of related party deposits, which helped fund organic loan growth. These increases were partially offset by decreases in noninterest-bearing and interest-bearing demand accounts and savings accounts, as interest rate sensitive clients shifted funds from lower-cost deposits, such as noninterest-bearing deposits, into higher rate money market and time deposits. Noninterest-bearing deposits increased $4.8 million, or 3.8%, to $129.7 million at September 30, 2024, compared to $124.9 million at June 30, 2024 and decreased $24.2 million, or 15.7%, from $153.9 million at September 30, 2023. Noninterest-bearing deposits represented 14.0%, 13.8% and 17.9% of total deposits at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    FHLB advances totaled $40.0 million at each of September 30, 2024, June 30, 2024, and September 30, 2023. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at September 30, 2024 had maturities ranging from late 2024 through early 2028. Subordinated notes, net totaled $11.7 million at each of September 30, 2024, June 30, 2024 and September 30, 2023.

    Stockholders’ equity totaled $102.2 million at September 30, 2024, an increase of $892 thousand, or 0.9%, from $101.3 million at June 30, 2024, and an increase of $2.0 million, or 2.0%, from $100.2 million at September 30, 2023. The increase in stockholders’ equity from June 30, 2024 was primarily the result of $1.2 million of net income earned during the current quarter and a $127 thousand decrease in accumulated other comprehensive loss, net of tax, partially offset by the payment of $487 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans; expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.


    CONSOLIDATED INCOME STATEMENTS

    (Dollars in thousands, unaudited)

        For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Interest income   $ 14,838   $ 14,039     $ 13,760     $ 13,337     $ 12,686  
    Interest expense     6,965     6,591       6,300       5,770       4,518  
    Net interest income     7,873     7,448       7,460       7,567       8,168  
    Provision for (release of) credit losses     8     (109 )     (33 )     (27 )     75  
    Net interest income after provision for (release of) credit losses     7,865     7,557       7,493       7,594       8,093  
    Noninterest income:                    
    Service charges and fee income     628     761       612       576       700  
    Earnings on bank-owned life insurance     186     134       177       222       88  
    Mortgage servicing income     280     279       282       288       295  
    Fair value adjustment on mortgage servicing rights     101     (116 )     (65 )     (96 )     (78 )
    Net gain on sale of loans     40     74       90       76       76  
    Other income         30                    
    Total noninterest income     1,235     1,162       1,096       1,066       1,081  
    Noninterest expense:                    
    Salaries and benefits     4,469     4,658       4,543       3,802       4,148  
    Operations     1,540     1,569       1,457       1,537       1,625  
    Regulatory assessments     189     220       189       198       183  
    Occupancy     414     397       444       458       458  
    Data processing     1,067     910       1,017       1,311       1,296  
    Net (gain) loss on OREO and repossessed assets         (17 )     6              
    Total noninterest expense     7,679     7,737       7,656       7,306       7,710  
    Income before provision for income taxes     1,421     982       933       1,354       1,464  
    Provision for income taxes     267     187       163       143       295  
    Net income   $ 1,154   $ 795     $ 770     $ 1,211     $ 1,169  
     

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Nine Months Ended September 30
          2024       2023  
    Interest income   $ 42,638     $ 37,273  
    Interest expense     19,856       10,990  
    Net interest income     22,782       26,283  
    (Release of) provision for credit losses     (134 )     (246 )
    Net interest income after (release of) provision for credit losses     22,916       26,529  
    Noninterest income:        
    Service charges and fee income     2,001       1,951  
    Earnings on bank-owned life insurance     498       957  
    Mortgage servicing income     841       891  
    Fair value adjustment on mortgage servicing rights     (81 )     (123 )
    Net gain on sale of loans     205       264  
    Other income     30        
    Total noninterest income     3,494       3,940  
    Noninterest expense:        
    Salaries and benefits     13,670       13,333  
    Operations     4,566       4,557  
    Regulatory assessments     598       490  
    Occupancy     1,255       1,352  
    Data processing     2,995       3,077  
    Net (gain) loss on OREO and repossessed assets     (10 )     13  
    Total noninterest expense     23,074       22,822  
    Income before provision for income taxes     3,336       7,647  
    Provision for income taxes     617       1,419  
    Net income   $ 2,719     $ 6,228  
     

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 148,930     $ 135,111     $ 137,977     $ 49,690     $ 101,890  
    Available-for-sale securities, at fair value     8,032       7,996       8,115       8,287       7,980  
    Held-to-maturity securities, at amortized cost     2,139       2,147       2,157       2,166       2,174  
    Loans held-for-sale     65       257       351       603       1,153  
    Loans held-for-portfolio     901,733       889,274       897,877       894,478       875,434  
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net     893,148       880,781       889,279       885,718       866,996  
    Accrued interest receivable     3,705       3,413       3,617       3,452       3,415  
    Bank-owned life insurance, net     22,363       22,172       22,037       21,860       21,638  
    Other real estate owned (“OREO”) and other repossessed assets, net     115       115       690       575       575  
    Mortgage servicing rights, at fair value     4,665       4,540       4,612       4,632       4,681  
    Federal Home Loan Bank (“FHLB”) stock, at cost     2,405       2,406       2,406       2,396       2,783  
    Premises and equipment, net     4,807       4,906       6,685       5,240       5,204  
    Right-of-use assets     3,779       4,020       4,259       4,496       4,732  
    Other assets     6,777       6,995       4,500       6,106       6,955  
    TOTAL ASSETS   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
    LIABILITIES                    
    Interest-bearing deposits   $ 800,480     $ 781,854     $ 788,217     $ 699,813     $ 706,954  
    Noninterest-bearing deposits     129,717       124,915       128,666       126,726       153,921  
    Total deposits     930,197       906,769       916,883       826,539       860,875  
    Borrowings     40,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     908       760       719       817       588  
    Lease liabilities     4,079       4,328       4,576       4,821       5,065  
    Other liabilities     9,711       9,105       9,578       9,563       9,794  
    Advance payments from borrowers for taxes and insurance     2,047       812       2,209       1,110       1,909  
    Subordinated notes, net     11,749       11,738       11,728       11,717       11,707  
    TOTAL LIABILITIES     998,691       973,512       985,693       894,567       929,938  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,296       28,198       28,110       27,990       28,112  
    Retained earnings     74,840       74,173       73,907       73,627       73,438  
    Accumulated other comprehensive loss, net of tax     (922 )     (1,049 )     (1,050 )     (988 )     (1,337 )
    TOTAL STOCKHOLDERS’ EQUITY     102,239       101,347       100,992       100,654       100,238  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
     

    KEY FINANCIAL RATIOS
    (unaudited)

        For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Annualized return on average assets     0.42 %     0.30 %     0.29 %     0.46 %     0.46 %
    Annualized return on average equity     4.50 %     3.17 %     3.06 %     4.78 %     4.60 %
    Annualized net interest margin(1)     2.98 %     2.92 %     2.95 %     3.04 %     3.38 %
    Annualized efficiency ratio(2)     84.31 %     89.86 %     89.48 %     84.63 %     83.36 %
    (1)   Net interest income divided by average interest earning assets.
    (2)   Noninterest expense divided by total revenue (net interest income and noninterest income).
     

    PER COMMON SHARE DATA
    (unaudited)

        At or For the Quarter Ended
        September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Basic earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Diluted earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Weighted-average basic shares outstanding     2,544,233       2,540,538       2,539,213       2,542,175       2,553,773  
    Weighted-average diluted shares outstanding     2,569,368       2,559,015       2,556,958       2,560,656       2,571,808  
    Common shares outstanding at period-end     2,564,095       2,557,284       2,558,546       2,549,427       2,568,054  
    Book value per share   $ 39.87     $ 39.63     $ 39.47     $ 39.48     $ 39.03  
     

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following tables present, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance
      Interest
    Earned/
    Paid
      Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid
      Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid
      Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 898,570     $ 12,876   5.70 %   $ 891,863     $ 12,320   5.56 %   $ 862,397     $ 11,505   5.29 %
    Interest-earning cash   138,240       1,830   5.27 %     120,804       1,586   5.28 %     81,616       1,042   5.07 %
    Investments   13,806       132   3.80 %     13,935       133   3.84 %     14,793       139   3.73 %
    Total interest-earning assets $ 1,050,616       14,838   5.62 %     1,026,602     $ 14,039   5.50 %   $ 958,806       12,686   5.25 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 340,281       2,688   3.14 %   $ 301,454       2,115   2.82 %   $ 192,214       720   1.49 %
    Demand and NOW accounts   148,252       151   0.41 %     153,739       148   0.39 %     194,561       173   0.35 %
    Certificate accounts   303,632       3,524   4.62 %     317,496       3,731   4.73 %     293,820       2,984   4.03 %
    Subordinated notes   11,745       168   5.69 %     11,735       168   5.76 %     11,703       168   5.70 %
    Borrowings   40,000       434   4.32 %     40,000       429   4.31 %     42,815       473   4.38 %
    Total interest-bearing liabilities $ 843,910       6,965   3.28 %   $ 824,424       6,591   3.22 %   $ 735,113       4,518   2.44 %
    Net interest income/spread     $ 7,873   2.34 %       $ 7,448   2.28 %       $ 8,168   2.81 %
    Net interest margin         2.98 %           2.92 %           3.38 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   124 %             125 %             130 %        
    Noninterest-bearing deposits $ 132,762             $ 128,878             $ 151,298          
    Total deposits   924,927     $ 6,363   2.74 %     901,567     $ 5,994   2.67 %     831,893     $ 3,877   1.85 %
    Total funding (1)   976,672       6,965   2.84 %     953,302       6,591   2.78 %     886,411       4,518   2.02 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     
      Nine Months Ended
      September 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance
      Interest
    Earned/
    Paid
      Yield/Rate   Average
    Outstanding
    Balance
      Interest
    Earned/
    Paid
      Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 895,300     $ 37,429   5.58 %   $ 865,357     $ 34,437   5.32 %
    Interest-earning cash   122,194       4,832   5.28 %     70,094       2,447   4.67 %
    Investments   12,607       377   3.99 %     13,962       389   3.73 %
    Total interest-earning assets $ 1,030,101       42,638   5.53 %   $ 949,413       37,273   5.25 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 308,845       6,669   2.88 %   $ 173,319       1,197   0.92 %
    Demand and NOW accounts   153,897       440   0.38 %     216,753       587   0.36 %
    Certificate accounts   312,176       10,950   4.69 %     273,564       7,182   3.51 %
    Subordinated notes   11,735       504   5.74 %     11,693       504   5.76 %
    Borrowings   40,000       1,293   4.32 %     45,280       1,520   4.49 %
    Total interest-bearing liabilities $ 826,653       19,856   3.21 %   $ 720,609       10,990   2.04 %
    Net interest income/spread     $ 22,782   2.32 %       $ 26,283   3.21 %
    Net interest margin         2.95 %           3.70 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             132 %        
    Noninterest-bearing deposits $ 131,365             $ 161,051          
    Total deposits   906,283     $ 18,059   2.66 %     824,687     $ 8,966   1.45 %
    Total funding (1)   958,018       19,856   2.77 %     881,660       10,990   1.67 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     

    LOANS
    (Dollars in thousands, unaudited)

        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Real estate loans:                    
    One-to-four family   $ 271,702     $ 268,488     $ 279,213     $ 279,448     $ 280,556  
    Home equity     25,199       26,185       24,380       23,073       21,313  
    Commercial and multifamily     358,587       342,632       324,483       315,280       304,252  
    Construction and land     85,724       96,962       111,726       126,758       118,619  
    Total real estate loans     741,212       734,267       739,802       744,559       724,740  
    Consumer Loans:                    
    Manufactured homes     40,371       38,953       37,583       36,193       34,652  
    Floating homes     86,155       81,622       84,237       75,108       73,716  
    Other consumer     18,266       18,422       18,847       19,612       18,710  
    Total consumer loans     144,792       138,997       140,667       130,913       127,078  
    Commercial business loans     17,481       17,860       19,075       20,688       25,033  
    Total loans     903,485       891,124       899,544       896,160       876,851  
    Less:                    
    Premiums     736       754       808       829       850  
    Deferred fees, net     (2,488 )     (2,604 )     (2,475 )     (2,511 )     (2,267 )
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net   $ 893,148     $ 880,781     $ 889,279     $ 885,718     $ 866,996  
     

    DEPOSITS
    (Dollars in thousands, unaudited)

        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Noninterest-bearing demand   $ 129,717     $ 124,915     $ 128,666     $ 126,726     $ 153,921  
    Interest-bearing demand     148,740       152,829       159,178       168,346       185,441  
    Savings     61,455       63,368       65,723       69,461       76,729  
    Money market(1)     285,655       253,873       241,976       154,044       143,558  
    Certificates     304,630       311,784       321,340       307,962       301,226  
    Total deposits   $ 930,197     $ 906,769     $ 916,883     $ 826,539     $ 860,875  
    (1)   Includes $5.0 million of brokered deposits at December 31, 2023.
     

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Total nonperforming loans   $ 8,489     $ 8,909     $ 9,053     $ 3,556     $ 1,762  
    OREO and other repossessed assets     115       115       690       575       575  
    Total nonperforming assets   $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
    Net charge-offs during the quarter   $ (14 )   $ (17 )   $ (56 )   $ (15 )   $ (3 )
    Provision for (release of) credit losses during the quarter     8       (109 )     (33 )     (27 )     75  
    Allowance for credit losses – loans     8,585       8,493       8,598       8,760       8,438  
    Allowance for credit losses – loans to total loans     0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses – loans to total nonperforming loans     101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Nonperforming loans to total loans     0.94 %     1.00 %     1.01 %     0.40 %     0.20 %
    Nonperforming assets to total assets     0.78 %     0.84 %     0.90 %     0.42 %     0.23 %
     

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
                         
    Total loans to total deposits     97.13 %     98.27 %     98.11 %     108.42 %     101.86 %
    Noninterest-bearing deposits to total deposits     13.95 %     13.78 %     14.03 %     15.33 %     17.88 %
                         
    Average total assets for the quarter   $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985     $ 1,005,223  
    Average total equity for the quarter   $ 102,059     $ 100,961     $ 101,292     $ 100,612     $ 100,927  
                                             

    Contact

    Financial:      
    Wes Ochs
    Executive Vice President/CFO
    (206) 436-8587
     
    Media:      
    Laurie Stewart
    President/CEO
    (206) 436-1495

    The MIL Network

  • MIL-OSI USA: Merkley, Wyden Announce $46 Million to Boost the Klamath Basin

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    October 30, 2024

    Federal funding will help restore the Klamath River’s habitat following historic dam removal and further protect endangered C’waam, Koptu, and salmon

    Washington, D.C. – Oregon’s U.S. Senators Jeff Merkley and Ron Wyden today announced the U.S. Fish and Wildlife Service (USFWS) is investing a total of $46,191,133 in Bipartisan Infrastructure Law funding to boost ecosystem restoration and enhance water quality and reliability through 24 projects throughout the Klamath Basin—12 of which are taking place in Oregon.

    This latest federal funding wave from the landmark law will largely fuel the Klamath River’s recovery and habitat restoration efforts following the removal of the four lower Klamath Dams in 2024—the largest dam removal effort in U.S. history.

    “A key to restoring the Klamath Basin is major federal investments that will support collaborative ecosystem restoration and water improvement efforts. This funding will continue ongoing efforts I helped energize alongside the Klamath Tribes and other stakeholders to save the C’waam and Koptu, and restore the aquatic habitat and ecosystems of the Klamath River following the historic removal of the four lower Klamath Dams,” said Merkley, who visited Northern California earlier in October to tour a former dam site and celebrate removal alongside Tribes and other key partners. “Since the dams came out, we’ve seen the salmon returning home for the first time in generations. This federal investment champions projects that help ensure the C’waam, Koptu, and salmon all have an ecosystem to thrive in, while also prioritizing efforts that help this unique region’s water go farther for the Tribes, farmers, fish, and vital ecosystems that rely on it.”

    “Restoration of the Klamath Basin requires significant resources just like these to catalyze the work that’s needed locally to build a stronger ecosystem and improve water quality,” Wyden said. “This fresh federal investment in the region and the big gains it will generate for jobs, recreation, and habitat will work to ensure the area’s farmers, Tribes and communities can grow and thrive for generations to come.”

    As Chairman of the Senate Interior Appropriations Subcommittee, Merkley secured a historic $162 million over five years through the Bipartisan Infrastructure Law specifically dedicated to restoring ecosystems and enhancing drought resiliency work in the Klamath Basin. Today’s $46 million funding announcement from the U.S. Department of the Interior’s USFWS marks the third year of investments from this landmark law, as it follows $26 million provided in 2022 and $15 million in 2023. Merkley also convened the “Sucker Summit ” in 2018, which brought people from across the Basin together and helped lay the groundwork for these significant investments to protect the C’waam and the Koptu.

    In February of this year, Merkley and Wyden announced $72 million in new federal funding for critical ecosystem restoration projects and agricultural infrastructure modernization in the Basin, as well as a historic agreement with the Klamath Tribes, Yurok Tribe, Karuk Tribe, and Klamath Water Users Association (KWUA). This Memorandum of Understanding (MOU) cemented their commitment to working together to drive long-term solutions to the Basin’s water challenges. That includes collective efforts to restore the region’s ecosystem and improve water supply and reliability for the Klamath Project. 

    The 12 restoration projects in Oregon—some of which are being developed by Klamath MOU group partners, as well as other Tribes and other conservation partners—are as follows:

    • $13,000,000 for the Wetland Restoration on Upper Klamath Basin National Wildlife Refuge Agency Lake Units project. This will complete restoration of the Agency-Barnes wetland units of Upper Klamath National Wildlife Refuge and provide fish habitat access in Fourmile and Sevenmile creeks. Covering 14,356 acres, the restored wetland will create vital habitat for waterfowl, federally endangered Lost River and shortnose suckers (C’waam and Koptu sucker fish), and other species, making it one of the largest wetland restoration initiatives in America. MOU group partners – Ducks Unlimited and Klamath Tribes
    • $3,500,000 for the Upper Williamson River Restoration Phase 2 project. This will provide fish passage to over 26 miles of the upper Williamson River and reconnect several thousand acres of adjacent wetlands and riparian habitats within the Klamath Marsh National Wildlife Refuge project area. MOU group partners – Ducks Unlimited and Klamath Tribes
    • $3,179,400 for the Climate Change Resiliency Stream Restoration and Post Bootleg Fire Stream Stabilization and Restoration project. This effort includes placing approximately 400 Beaver Dam Analog, Post Assisted Log Structures, and other types of instream structures to help restore several streams in the Sprague River and Williamson River watersheds. MOU partner – Klamath Tribes
    • $3,000,000 for the Lake Ewauna Restoration for the Benefit of People, Fish and Wildlife project. This funding will be used to develop and restore wetlands and shoreline around Lake Ewauna in downtown Klamath Falls for the benefit of native fish and wildlife species and to tell the story of the local Tribes, farmers, and communities in the Klamath Basin. Restorative improvements to habitat in Link River and instream habitat improvements within Lake Ewauna will benefit C’waam and Koptu suckers, native trout, migratory waterfowl, and other species. With the recently removed Klamath dams, salmon and steelhead will also be migrating through Lake Ewauna for the first time in over a century. Partners – The Klamath Watershed Partnership, City of Klamath Falls, and Klamath County Economic Development Agency
    • $2,540,000 million for the Tule Lake Flow Through Infrastructure Improvement project. This encompasses a suite of infrastructure improvements and operational changes to provide natural ecosystem services with respect to water quality in the Klamath Basin. Water used for farmland irrigation would then flow through wetlands before returning to the Klamath River. In addition to water quality benefits for the Klamath River, this project will provide habitat for threatened and endangered fish, support migratory wildlife, recharge groundwater, and provide other ecosystem benefits. MOU group partners – KWUA and Tulelake Irrigation District
    • $2,027,799 for the SONAR and Radio Telemetry and Spawning Surveys for Klamath Salmon project. This will be used to obtain abundance estimates of salmon and steelhead entering the reach previously blocked by the four lower Klamath dams and track salmon migrations to their spawning grounds. These metrics will provide a foundation for assessment of stock status and trends while guiding future restoration efforts in the newly accessible habitats, developing a toolset to support prioritization of future restoration and monitoring in the Klamath River. It will also provide much needed capacity for three of the six tribes on the Klamath River, allowing them to track the return of these culturally significant species. MOU group partners – Karuk Tribe, California Trout, Klamath Tribes, Yurok Tribe, Cal Poly Humboldt, and the California Department of Fish and Wildlife
    • $1,253,000 for the Klamath Basin Fisheries Collaborative: Passive Integrated Transponder (PIT) Tag Monitoring and Database project. This will be used to continue to build the infrastructure required to provide Klamath Basin fisheries managers with consistent and reliable data on movements of fish using PIT tags. Work funded by this proposal includes continuing to improve on existing fish monitoring efforts by coordinating activities and collaborating on tasks, as well as advancing data exchange by refining the user interface and providing technical support to data providers. Partner – Pacific States Marine Fisheries Commission
    • $500,000 for the Implementation of Integrated Fisheries Restoration and Monitoring Plan (IFRMP) project. This will fund a USFWS initiative to support Klamath Basin stakeholders in tracking, coordinating, and integrating monitoring and data collection efforts across the Basin.
    • $500,000 for the Klamath Basin Stakeholder Engagement and Facilitation project. This will fund a USFWS initiative to provide greater continuity and work toward local governance for the MOU parties, which are interested in utilizing a neutral facilitator to help identify additional ways to promote collaboration and reduce conflict over natural resources. This effort could include expanding the MOU group to include other interested parties and to develop proposals related to a governance structure for making important decisions on restoration and monitoring in the Klamath Basin. These funds would support the hiring of a facilitator selected by the parties and support up to three to five years of facilitation support.
    • $300,000 for the Post Dam Removal Data Collection on Salmon Migration and Movement project. This funding will be used by project partners to use otolith microchemistry tools to 1) understand how Klamath Dam removal affects the early life history diversity of Chinook salmon, 2) determine the natal origin and migration histories of returning fish, pre- and post-dam removal, 3) determine which tributaries are and are not producing Chinook salmon, and 4) quantify how Chinook production varies between different tributaries before and after dam removal. The information is critical to adaptively managing the Klamath Basin, post dam removal, and has important implications for restoration of key tributaries. Partner – UC Davis
    • $295,000 for the Surface Water Management and Efficiency Enhancement project. This encompasses necessary infrastructure improvements to allow safe, reliable, and integrated management of water within the Klamath Project. MOU group partners – KWUA, Klamath Irrigation District, and Klamath Drainage District
    • $200,000 for the FWS Post Dam Removal Science Symposia project. This will fund an USFWS initiative to sponsor a Klamath science symposium in 2025. Planning for this symposium will start in November 2024. The goal is to bring together stakeholders/experts to discuss the state of the Basin post dam removal, progress on restoration and monitoring, and next-step strategies to continue the momentum on restoration progress in the years ahead.

    For a complete list and full descriptions of all the 24 projects awarded funding in the Klamath Basin, click HERE.

    MIL OSI USA News

  • MIL-OSI United Kingdom: What the Great Gale of 1824 taught us about extreme weather

    Source: United Kingdom – Government Statements

    November is the 200th anniversary of the Great Gale of 1824. It killed nearly 100 people and destroyed villages along the south coast of England.

    There is a free public exhibition about the impacts of the Great Gale on the Dorset coast.

    The Environment Agency, Dorset Coast Forum and Bournemouth, Christchurch and Poole (BCP) Council are raising awareness of extreme weather and flooding as they mark the 200th anniversary of the 1824 Great Gale.

    On the night of 22 November 1824, a devastating storm struck England’s south coast and raged for two days. Winds reached hurricane force, with gusts exceeding 100 mph, causing widespread damage. Houses were severely flooded, whole villages destroyed, ships lost at sea and nearly 100 people were tragically killed.

    Trail of destruction

    The Dorset coast was hardest hit, but the storm’s impact stretched from Land’s End to Dover. Inland communities did not escape devastation from wind damage and it took many years for affected communities to recover.

    At Plymouth, the storm sunk 22 vessels and swept away over 200,000 tons of stone from the city’s new breakwater which was under construction. While, at Abbotsbury, seawater surged over Chesil Beach, reaching astonishing depths of up to 6.9 metres.

    Watch our animation about the Great Gale’s trail of destruction Great Gale of 1824.

    Rare combination created Dorset’s worst storm

    The Great Gale, considered the most destructive storm ever to strike the Dorset coastline, was caused by a rare combination of factors. Hurricane force winds, spring high tides, extreme low pressure and towering waves created unprecedented conditions for the storm. Its severity was so extreme it is estimated to have a 1 in 10,000 chance of recurring each year.

    Recent events like Storm Boris in Europe, Typhoon Yagi in Asia and Hurricanes Helene and Milton in North America highlight the ongoing threat of severe weather – and, as climate change increases the energy driving these storms, the importance of being prepared.

    How to prepare for extreme weather

    This post is nearly 7m high and shows the 1824 storm’s high water mark which reached 22ft 8in at the Swannery, Abbotsbury, Dorset.

    Know the simple steps to take in advance to protect yourself from flooding.

    Andrea Summers, Environment Agency flood and coastal risk manager for Wessex, said:

    As we remember those who tragically lost their lives 200 years ago, this anniversary serves as a stark reminder of the destructive power of nature and the devastating impact flooding can have on communities.

    Needless to say, we are much more resilient now than we were then, with major innovations in forecasting, warning and defence systems. But our climate is changing, sea levels are rising and extreme weather events are becoming more frequent.

    While the events of November 1824 represent a worst-case scenario, they highlight the importance of being prepared. You should know your flood risk, sign up for flood warnings and make sure your homes and businesses are resilient to flooding.

    What is being done to better protect people

    The Environment Agency is investing to better protect people from flooding and extreme weather. The £200m Flood and Coastal Innovation Programmes is working in partnership with local authorities nationwide to develop, test and implement innovative ways of improving resilience and adapting to the impacts of flooding, coastal erosion and climate change. 

    Additionally, the new Floods Resilience Taskforce is driving government efforts to accelerate the development of flood defences and bolster the nation’s resilience to extreme weather events.

    How to see The Great Gale of 1824 exhibition

    As part of the bicentenary commemorations, the Environment Agency has worked with Dorset Coast Forum and BCP Council to bring together a free public exhibition to explore the impacts the Great Gale left on the Dorset Coast.  For more information, including dates and venues, please visit the Dorset Coast Forum website.

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Government ends miners’ pension injustice

    Source: United Kingdom – Government Statements

    Historic injustice reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions.

    • Historic injustice reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions by 32% 

    • Government delivers longstanding campaign ask from ex-pit workers, alongside new review to also ensure mineworkers receive a fair pension for years to come 

    • Energy Secretary pays tribute to the “mineworkers who powered our country” and the campaigners who fought for justice over many years 

    Over 100,000 former mineworkers will receive £1.5 billion of money that was kept from their pensions, overturning an historic injustice and ensuring fair payouts for years to come. 

    Following the announcement in yesterday’s budget, Energy Secretary Ed Miliband confirmed that the move will mean a 32% boost to the annual pensions of 112,000 former mineworkers – an average increase of £29 per week for each member. 

    The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit. This money was due to be returned to government in 2029.  

    Former mineworkers and their families have fought for justice for many years. In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.  

    When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation. 

    The scheme has continued to produce strong returns and the government has never paid any funds into it. Therefore, the government is also delivering on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months. 

    Energy Secretary Ed Miliband said: 

    We owe the mining communities who powered this country a debt of gratitude.  

    For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families. 

    Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice- today is their victory.

    Minister for Industry Sarah Jones said: 

    Miners powered our industries and our homes for decades. That’s why we have to right the wrong that has denied them the decent pension they deserved. 

    We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most. This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay – an increase of 32%.

    Gary Saunders, Chair of the Trustees of the Mineworker’ Pension Scheme, said: 

    As a Trustee board we are delighted we will be able to put more money in our members’ pockets. We are also grateful to the many members and MPs who have shown support of the Scheme on this matter over the years.

    Allen Young, Pensioner Representative Trustee for the North East of England and Overseas members, said: 

    The government’s decision to make good on this part of its manifesto commitment in respect of the Scheme is a very positive development for our members. The Trustees will use the Investment Reserve to increase our members’ pensions and we will be writing to all members with the good news very shortly.

    The trustees are responsible for deciding how the £1.5 billion fund is distributed amongst their 112,000 members and are now working at speed to deliver the bonus into pension pay packets from November this year. 

    This announcement follows urgent action already taken toward the government’s clean energy superpower mission, helping to boost energy independence and create jobs. In just three months this includes lifting the ban on onshore wind, setting up Great British Energy and announcing a partnership with The Crown Estate to accelerate offshore wind projects, approving four major solar farms, launching the Clean Energy Mission Control centre led by Chris Stark, securing a record pipeline of renewable projects in the latest auction and launching the UK’s first carbon capture sites. 

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom