Category: KB

  • MIL-OSI Security: South Florida Man Sentenced to 30 Years in Prison for Distribution of Fentanyl Resulting in Death of Baby and Possession of Firearms as a Convicted Felon

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

    MIAMI – Yesterday afternoon, Darnell Mendez, 36, was sentenced to 30 years in federal prison, followed by five years of supervised release, by U. S. District Judge Robin L. Rosenberg. Mendez and his girlfriend, Samantha Yi, previously pled guilty to federal offenses resulting from a long-term joint investigation by the Boynton Beach Police Department (BBPD), the Palm Beach County Sheriff’s Office (PBSO), and the Drug Enforcement Administration (DEA) following the death of a 10-month-old infant in Boynton Beach, Fla. who had ingested fentanyl. Yi is scheduled to be sentenced on Jan. 9, 2025, and faces a minimum mandatory sentence of at least twenty years in prison.

    On March 31, 2022, PBSO responded to a 911 call of an infant in distress. The infant was transported to Bethesda Hospital East in Boynton Beach with her mother. On April 1, 2022, the baby was transferred to Joe DiMaggio Children’s Hospital in Hollywood, Fla. On April 5, 2022, the baby died. An autopsy conducted by the Palm Beach County Medical Examiner determined that the baby’s death was caused by fentanyl intoxication and that her manner of death was a homicide.

    The BBPD conducted a homicide investigation during which law enforcement recovered fentanyl at the baby’s home. The investigation determined that the baby’s mother and father were addicts and had been abusing fentanyl regularly in the kitchen of their apartment. The investigation also determined that the baby was teething and ingested fentanyl on March 31, 2022, while in the care of her mother, and while her father was at work. The mother was arrested by the BBPD and charged with aggravated manslaughter of a child by culpable negligence.

    DEA joined the investigation to identify the drug dealers that were responsible for the distribution of the fentanyl that killed the baby. Through data and information retrieved from the mother’s cellphone, law enforcement was able to identify Yi as the drug dealer. The investigation uncovered months of electronic communications exchanged between Yi and the mother involving drug transactions in which the mother was the customer. The investigation further determined that Yi’s boyfriend, Mendez was also involved in the distribution of fentanyl. Investigators were able to determine that on March 30, 2022, the mother met with Yi in Boynton Beach to purchase fentanyl, and that fentanyl was ingested by the baby resulting in her death.

    As part of the joint investigation, DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), BBPD, and PBSO conducted an operation involving two undercover officers who purchased fentanyl from Yi and Mendez. The undercover operation culminated in the arrests of Yi and Mendez on March 6, at their residence in Lake Worth, where law enforcement discovered 14 firearms. As part of their pleas, Yi and Mendez admitted being felons unlawfully in possession of firearms.

    U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, Special Agent in Charge Christopher A. Robinson of the ATF, Miami Field Division, Chief Joe DeGiulio of BBPD, and Sheriff Ric Bradshaw of PBSO announced the sentencing.

    The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant U.S. Attorneys Adam McMichael and Shannon O’Shea Darsch are prosecuting the case.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-80041.

    ###

    MIL Security OSI

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

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

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

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

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

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

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

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

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

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    MIL Security OSI

  • MIL-OSI Security: Gore Resident Sentenced For Federal Firearm Charge

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

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kelly Don Girty, Jr., age 30, of Gore, Oklahoma, was sentenced to 46 months for illegally possessing a firearm. The Court ordered the federal sentence to run consecutive to state sentences Girty received in the District Court of Sequoyah County.

    The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

    On May 2, 2024, Girty pleaded guilty to one count of Felon in Possession of a Firearm.  According to investigators, on January 7, 2024, a Sequoyah County Sheriff’s deputy conducting a routine traffic stop discovered Girty in possession of a .22 caliber bolt action rifle.  At the time of the stop, Girty had been convicted of a crime punishable by imprisonment for a term exceeding one year and was prohibited from possessing firearms.

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

    The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee, Oklahoma.  Girty will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

    Assistant U.S. Attorney Jonathan E. Soverly represented the United States.

    MIL Security OSI

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

    US Senate News:

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

    MIL OSI USA News

  • MIL-OSI: NVIDIA Sets Conference Call for Third-Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) — NVIDIA will host a conference call on Wednesday, November 20, at 2 p.m. PT (5 p.m. ET) to discuss its financial results for the third quarter of fiscal year 2025, which ended October 27, 2024.

    The call will be webcast live (in listen-only mode) on investor.nvidia.com. The company’s prepared remarks will be followed by a question-and-answer session, which will be limited to questions from financial analysts and institutional investors.

    Ahead of the call, NVIDIA will provide written commentary on its third-quarter results from its chief financial officer, Colette Kress. This material will be posted to investor.nvidia.com immediately after the company’s results are publicly announced at approximately 1:20 p.m. PT.

    The webcast will be recorded and available for replay until the company’s conference call to discuss financial results for its fourth quarter and fiscal year 2025.

    About NVIDIA
    NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.

    For further information, contact:  
    Investor Relations Corporate Communications
    NVIDIA Corporation NVIDIA Corporation
    ir@nvidia.com press@nvidia.com
       

    © 2024 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries.

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

    Third Quarter 2024 Highlights:

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

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

    Consolidated Financial Highlights

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

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

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

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

    Declaration of Quarterly Dividend

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

    Financial Results for the Three Months Ended September 30, 2024

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

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

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

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

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

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

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

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

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

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

    2024 Strategic Focus Areas

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

    Liquidity

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

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

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


    NACG’s Outlook for 2024

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

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

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


    Conference Call and Webcast

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

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

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

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

    The live presentation and webcast can be accessed at:

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

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

    Basis of Presentation

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

    Change in significant accounting policy – Basis of presentation

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

    Forward-Looking Information

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

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

    Non-GAAP Financial Measures

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

    Reconciliation of total reported revenue to total combined revenue

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

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


    Reconciliation of reported gross profit to combined gross profit

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

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


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

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

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


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

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

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


    About the Company

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

    For further information contact:

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

    Interim Consolidated Balance Sheets

    (Expressed in thousands of Canadian Dollars)
    (Unaudited) 

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

    Interim Consolidated Statements of Operations and
    Comprehensive Income

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

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

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI Economics: IMF Executive Board Concludes the Seventh and Eighth Reviews under the Extended Fund Facility and Extended Credit Facility and Review under the Resilience and Sustainability Facility Arrangement with Kenya

    Source: International Monetary Fund

    October 30, 2024

    • The Executive Board’s decision to complete the reviews enables a combined disbursement of around US$606 million to support the authorities’ efforts to rebuild fiscal and external buffers, including to enhance resilience to climate shocks.
    • Resolution of the exceptional external financing pressure earlier this year has revived market confidence, aided stabilization of the shilling, and enabled a faster buildup of foreign exchange reserves. However, large revenue shortfalls in FY2023/24 and pushback against revenue measures owing to governance concerns pose a challenge to the ongoing fiscal consolidation efforts.
    • The Kenyan authorities face a difficult balancing act of boosting domestic revenues to protect critical spending in priority areas while meeting heavy debt service obligations. Delivering on this would call for improving governance and transparency to restore public trust in the effective use of public resources.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the seventh and the eighth reviews under the extended arrangement under the Extended Fund Facility (EFF) and the arrangement under the Extended Credit Facility (ECF), approved in April 2021, and a review under the Resilience and Sustainability Facility (RSF) arrangement, approved in July 2023, with Kenya.

    The EFF/ECF arrangements aim to support Kenya’s program to address debt vulnerabilities while safeguarding resources for priority social and developmental needs; build resilience to shocks; improve governance and transparency; and support broader economic reforms to realize the country’s medium-term potential. The RSF arrangement aims to reinforce Kenya’s strong efforts to address climate-related challenges and catalyze further private climate finance.

    The Executive Board’s decision allows for the immediate disbursements of SDR365.28 million (about US$485.8 million) under the EFF/ECF arrangements and SDR90.47 million (about US$120.3 million) under the RSF arrangement. In addition, following the resolution of exceptional financing needs earlier this year, the Board approved a reduction in the total access under the EFF/ECF arrangements from exceptional access, approved in January 2024 (see PR24/12), to within the normal access limits and a rebalancing of access toward the zero-interest ECF arrangement. Together with the recent changes to the IMF’s charges and surcharges policy, these adjustments would lower Kenya’s interest payments to the IMF.

    Under the EFF/ECF arrangements, total IMF financial commitment stands at SDR2.714 billion (about US$3.61 billion), of which SDR2.343 billion (about US$3.12 billion) has been approved for disbursement. For the RSF arrangement, the corresponding amounts are SDR407.1 million (about US$541.3 million) and SDR135.70 million (about US$180.4 million), respectively.

    In completing the reviews, the Executive Board recognized that the resolution of the exceptional external financing pressure earlier this year has revived market confidence, supporting shilling stabilization and facilitating faster buildup of reserves. However, the fiscal consolidation efforts have faced headwinds following a sizable tax revenue shortfall in FY2023/24 and withdrawal of the 2024 Finance Bill after widespread public protests. Nevertheless, the EFF/ECF program has delivered on reducing inflation, strengthening external buffers, and stabilizing the exchange rate. In addition, the Board approved waivers of non-observance for the end-December 2023 tax revenue and the end-June 2024 primary budget balance and tax revenue targets based on the corrective action taken through the passage of the Supplementary FY2024/25 Budget, which together with medium-term fiscal consolidation would help reduce debt vulnerabilities, a core objective of the program. The Board also completed review under the RSF arrangement and approved the disbursements associated with two reform measures implemented.

    The Board emphasized that sustaining progress requires improving the quality of fiscal adjustment, addressing fiscal and financial sector vulnerabilities, advancing governance reforms, and implementing the structural agenda, including climate-related reforms. Continued efforts to support the vulnerable population, broadening the socio-political support for reforms, and ensuring agile policymaking will also be necessary.

    At the conclusion of the Executive Board’s discussion, Ms. Gita Gopinath, First Deputy Managing Director of the IMF and Acting Chair, made the following statement:

    “Kenya’s economy remains resilient, with growth above the regional average, inflation decelerating, and external inflows supporting the shilling and a buildup of external buffers, despite a difficult socio-economic environment.

    “The EFF/ECF and the RSF arrangements continue to support the authorities’ efforts to anchor macroeconomic stability, reduce debt vulnerabilities, promote reforms, and mitigate climate-related risks.

    “Performance since the last reviews of these arrangements has weakened. While accumulation of foreign exchange reserves and inflation were better than expected, the fiscal performance fell significantly short of the targets. The revenue and export underperformances increased debt vulnerabilities. Implementation of several reforms was also delayed.

    “In this context, a difficult adjustment path lies ahead. A credible fiscal consolidation strategy remains central to addressing debt vulnerabilities while protecting social and development spending. Reforms to make the tax regime more efficient, equitable, and progressive as well as strengthening accountability, transparency, and efficiency of public finances will help garner political and societal support for reforms. Clearly communicating the necessity and benefits of the reforms is paramount.

    “Given the elevated risks around the fiscal strategy, policymaking needs to be agile. Contingency planning remains critical, with policies adapting to evolving outcomes to safeguard stability and ensure that program objectives continue to be met.

    “The Central Bank of Kenya’s decisive actions have supported price stability and external sustainability, including through institutional changes to improve the functioning of the monetary policy operational framework and the money and foreign exchange markets. Exchange rate flexibility is vital to improve resilience to external shocks and competitiveness. Addressing banks’ deteriorating asset quality and emerging risks requires close monitoring and strengthened oversight.

    “Fast-tracking key reforms would raise medium-term potential. In particular, addressing deficiencies in governance, anti-corruption frameworks, and AML/CFT, including leveraging the requested governance diagnostic, is essential for garnering public trust and enhancing policy credibility, and for attracting fresh investments, including finance to build climate resilience.”

    Kenya: Selected Economic Indicators, 2021–2026

    2021

    2022

    2023

    2024

    2025

    2026

    Act.

    Act.

    Act.

    Est./ Proj.

    Proj.

    Proj.

    Output

    Real GDP growth (percent)

    7.6

    4.9

    5.6

    5.0

    5.0

    5.0

    Prices

    Inflation –average (percent)

    6.1

    7.6

    7.7

    5.0

    5.3

    5.1

    Central government finances (fiscal year)1

    Total revenue (percent of GDP)

    16.1

    17.5

    16.7

    17.2

    18.0

    18.7

    Expenditure and net lending (percent of GDP)

    24.4

    23.7

    22.5

    22.8

    22.3

    22.7

    Overall fiscal balance (percent of GDP)

    –8.3

    –6.2

    –5.6

    –5.3

    –4.3

    –4.0

    Public debt

    Gross nominal debt (percent of GDP)

    68.1

    67.8

    73.1

    67.0

    68.8

    68.8

    Gross external debt (percent of GDP)

    34.7

    34.6

    40.4

    34.9

    37.0

    37.4

    Money and Credit (end of period)

    Broad money (percent change)

    6.1

    7.1

    21.3

    5.6

    10.3

    10.2

    Credit to private sector (percent change)

    8.6

    12.5

    13.9

    3.3

    12.4

    11.2

    Policy rate, end-of-period (percent)

    7.0

    8.75

    12.50

    Balance of payments

    Current account balance (percent of GDP)

    –5.2

    –5.0

    –4.0

    –3.9

    –4.0

    –4.1

    Gross international reserves (in months of imports)

    4.7

    4.4

    3.8

    4.1

    4.1

    4.2

    Exchange rate

    REER (average percent change; positive = appreciation)

    –2.6

    2.2

    –8.3

    Sources: Kenyan authorities; and IMF staff estimates and projections.

    1 Based on fiscal year (i.e., 2025 represents fiscal year 2024/25, covering July 2024–June 2025).

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    MIL OSI Economics

  • MIL-OSI USA: Congressman Jake Ellzey’s Staff Deployed as Election Observers

    Source: United States House of Representatives – Representative Jake Ellzey (Texas, 6)

    The Constitution entrusts each House of Congress with the responsibility to “judge the Elections, Returns, and Qualifications of its own Members.” This authority was brought into focus in 2020 when Democrats attempted to overturn the certified results of an Iowa congressional race and install their preferred candidate instead.

    The Election Observer Program deploys congressional observers to polling locations nationwide to collect real-time, factual data that can assist in election disputes, seating challenges, and other election-related matters. This initiative is essential to House Administration Republicans’ work to promote election integrity and rebuild public confidence in the voting process. House staff members are encouraged to volunteer, and mandatory training is required for participation.

    “Elections have consequences, and there are few elections as consequential as the one taking place this November,” said Ellzey. We must ensure that every citizen has their voice heard, and I am grateful to the members of my staff who have volunteered to participate in the Election Observer Program. Through this program, they will be deployed across the country in New Mexico’s 2nd district, Michigan’s 13th, and Connecticut’s 5th. These races currently sit within the margin of error, and we must ensure that every vote is counted.”

    Ellzey continued, “Whoever you vote for, as a citizen of the United States, you have a right to have the vote count, and we have a duty to ensure that it does. So, I want to thank every volunteer who is dedicating their time to ensure that we have safe and fair elections.”

    ######

    MIL OSI USA News

  • MIL-OSI Canada: Manitoba Government Now Requires Heated Buses on Roads

    Source: Government of Canada regional news

    Manitoba Government Now Requires Heated Buses on Roads

    – – –
    Requirements Will Improve Safety and Comfort for Buses on Manitoba Roads Starting Nov. 1: Naylor


    Regulatory amendments that will require functional passenger heating systems on all buses travelling on Manitoba roadways and mandate daily inspection checks for the systems on some buses are coming into force Nov. 1, Transportation and Infrastructure Minister Lisa Naylor announced today.

    “Many Manitobans travel by bus for personal, business, educational or medical reasons,” said Naylor. “Whether travelling by bus is the only option or their preferred choice, all passengers must be safe and comfortable when travelling during cold weather.”

    The amendments to the Vehicle Equipment, Safety and Inspection Regulation and Commercial Vehicle Trip Inspection Regulation under the Highway Traffic Act will:

    • require functional passenger heating systems on all buses;
    • detail the methods of inspection to determine the heating system is functional; and
    • add passenger heaters to the list of equipment that must be inspected before the start of a trip.

    “For northern bus passengers travelling overnight during the winter, working heaters are a necessity,” said Mayor Colleen Smook, City of Thompson. “They’re a vital piece of safety equipment on highways where communities are hundreds of kilometres apart.”

    The minister noted the regulatory amendments were initiated following concerning reports of incidents of passengers travelling by bus during frigid temperatures without adequate heat.

    – 30 –

    MIL OSI Canada News

  • MIL-OSI Canada: Larger fines for illegal slaughter, uninspected meat

    Source: Government of Canada regional news

    [embedded content]

    The sale of uninspected meat is illegal in Alberta. Illegal slaughter and food safety non-compliance pose a risk to human and animal health and could harm Alberta’s entire livestock and meat processing industry. If passed, the Meat Inspection Amendment Act would increase fines from a maximum of $10,000 to $100,000 for each offence.

    Alberta’s government is proposing to increase these fines to ensure there is a significant deterrent, so offenders are motivated to comply with the Meat Inspection Act. The proposed changes would support food safety for Albertans without increasing consumer costs for inspected meat or operating costs for industry. The changes propose increased fines for those who commit an offence under the Meat Inspection Act and would bring Alberta in line with other jurisdictions.

    “We are taking action to maintain public confidence in our food system. I strongly encourage all Albertans to buy their meat from licensed operators and retailers, and while buying meat, ask your retailer where the meat comes from and if it’s inspected.”

    RJ Sigurdson, Minister of Agriculture and Irrigation

    In addition to increasing fines, amendments would extend the amount of time to investigate and lay charges for the illegal slaughter and sale of uninspected meat. Currently, the act allows inspectors one year after the offence to investigate allegations of illegal slaughter or sale of uninspected meat. If passed, the investigation timeframe for a complex case would be extended to two years from the date the offence came to the attention of an inspector.

    “Food safety is something that most Albertans take for granted because Alberta has some of the best people in our province and country looking out for our health. Both the federal and provincial regulatory bodies truly have the best interests of all Albertans in mind when they go out each day to do their jobs. That is the reason why changes are needed and made, to improve overall food safety and strengthen our provincial acts and regulations, to protect the health and safety of all Albertans.”

    Mike Bouma, general manager, Family Meats

    “As a meat safety and quality researcher, I applaud the Alberta government for their proposed amendments to the Meat Inspection Act. The substantial increase in penalties for contravention of the Meat Inspection Act will help to ensure that the meat that is available to consumers is safe for consumption.”

    Lynn McMullen, professor emerita, University of Alberta

    Quick facts

    • The sale of uninspected meat is illegal in Alberta.
    • Any meat or meat product that is sold or distributed in Alberta must come from an inspected slaughter facility (abattoir) or processing facility.
    • Alberta government meat inspectors are on site in provincially licensed abattoirs to ensure the meat produced is safe for consumption.
    • When required, Alberta provides additional inspected slaughter days to provincially licensed facilities, including on weekends, to support cultural celebrations.    
    • Alberta licenses 121 abattoirs that produce inspected meat under the supervision of provincial meat inspectors.
    • Alberta has 65 meat inspectors and program specialists who support licensing, inspections and surveillance.

    Related information

    • Meat Inspection Act – rules on the slaughter and sale of inspected meat
    • Directory of licensed slaughter operations – abattoirs, mobile butchers, mobile butcher facilities and on-farm slaughter operations
    • Resources for provincially licensed slaughter operations
    • Bill 28: Meat Inspection Amendment Act

    Multimedia

    • Watch the news conference
    • Listen to the news conference

    MIL OSI Canada News

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

    Source: New Zealand Police (National News)

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

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

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

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

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

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

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

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

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

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

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

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

    • Some incidents of unprofessional conduct were reported

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

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

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

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

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

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

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

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

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

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

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

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

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

    A deliberate focus was on gathering voices not typically heard.

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

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

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

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

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

    Notes to media

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

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

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

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

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

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

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

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

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

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

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

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

    The report can be viewed here.

    ENDS

    Issued by Police Media Centre

    MIL OSI New Zealand News

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

    Source: New Zealand Government

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

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

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

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

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

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

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

    Affordability is being ensured through several features:

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

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

    Resource consent for the following two sites is underway.

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

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

    MIL OSI New Zealand News

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

    Source: United States Institute of Peace

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

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

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

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

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

    Distress at home

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

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

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

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

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

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

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

    Stronger defense

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

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

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

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

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

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

    Better ties with South Korea

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

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

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

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

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

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

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

    G7 Hiroshima and nuclear disarmament

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

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

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

    “New Capitalism” never took off

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

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

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

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

    MIL OSI USA News

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

    Source: United States Institute of Peace

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

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

    MIL OSI USA News

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

    Source: United States Institute of Peace

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

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

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

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

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

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

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

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

    MIL OSI USA News

  • MIL-OSI USA: Aiken man arrested on Child Sexual Abuse Material* and related chargesRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced the arrest of William Daniel Mayes, 54, of Aiken, S.C. on seven charges connected to the sexual exploitation of minors. Internet Crimes Against Children (ICAC) Task Force investigators with the Aiken County Sheriff’s Office made the arrest. Investigators with the Attorney General’s Office, S.C. Probation, Parole, and Pardon, and Homeland Security Investigations, all also members of the state’s ICAC Task Force, assisted with the investigation. 

     

    Investigators received a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC) which led them to Mayes. Investigators state Mayes recorded a person without their consent and possessed files of child sexual abuse material.  

     

    Mayes was arrested on October 29, 2024. He is charged with five counts of sexual exploitation of a minor, third degree (§16-15-410), a felony offense punishable by up to ten years imprisonment on each count; and two counts of voyeurism (§16-17-470(B)), a misdemeanor offense punishable by up to 3 years imprisonment for a first offense on each count.

     

    The case will be prosecuted by the Attorney General’s Office.

     

    Attorney General Wilson stressed all defendants are presumed innocent unless and until they are proven guilty in a court of law.

     

     

    * Child sexual abuse material, or CSAM, is a more accurate reflection of the material involved in these heinous and abusive crimes. “Pornography” can imply the child was a consenting participant.  Globally, the term child pornography is being replaced by CSAM for this reason.

    MIL OSI USA News

  • MIL-OSI USA: Anderson man arrested on 10 Child Sexual Abuse Material* chargesRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced the arrest of Christopher Lee Hagood, 45, of Anderson, S.C., on 10 charges connected to the sexual exploitation of minors. Internet Crimes Against Children (ICAC) Task Force investigators with the Anderson County Sheriff’s Office made the arrest. Investigators with the Attorney General’s Office, also a member of the state’s ICAC Task Force, assisted with the investigation.

    Investigators received a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC) which led them to Hagood. Investigators state Hagood distributed files of child sexual abuse material.  

    Hagood was arrested on October 22, 2024. He is charged with 10 counts of sexual exploitation of a minor, second degree (§16-15-405), a felony offense punishable by up to 10 years imprisonment on each count.

    This case will be prosecuted by the Attorney General’s Office.

    Attorney General Wilson stressed all defendants are presumed innocent unless and until they are proven guilty in a court of law.

    * Child sexual abuse material, or CSAM, is a more accurate reflection of the material involved in these heinous and abusive crimes. “Pornography” can imply the child was a consenting participant.  Globally, the term child pornography is being replaced by CSAM for this reason

    MIL OSI USA News

  • MIL-OSI USA: News 10/30/2024 Blackburn, Cornyn, GOP Colleagues Introduce Bill to Stop Biden-Harris Amnesty Program

    US Senate News:

    Source: United States Senator Marsha Blackburn (R-Tenn)
    NASHVILLE, Tenn. – U.S. Senators Marsha Blackburn (R-Tenn.), John Cornyn (R-Texas), and 12 of their colleagues introduced the Visa Integrity Preservation Act, which would close a loophole in current law that the Biden-Harris administration exploited in a June 2024 executive action to grant amnesty to illegal immigrants who entered the United States without inspection or overstayed a visa:
    “Since day one in office, the Biden-Harris administration has made it crystal clear that they support an open border and providing mass amnesty to illegal immigrants through unlawful catch-and-release programs,” said Senator Blackburn. “Our Visa Integrity Preservation Act would stop the Biden-Harris administration from devaluing U.S. citizenship and making illegal immigration legal.” 
    “For almost four years, the Biden-Harris administration has waived their magic amnesty wand to create unlawful programs that allow any and every person to enter and stay in the U.S. – legally or not,” said Senator Cornyn. “By strengthening the laws already on the books, our legislation would root out this massive pull factor while also preserving the integrity of our employment-based nonimmigrant visa program, and I’m grateful to my colleagues for their support.”

    BACKGROUND:

    Under current immigration law, illegal immigrants who overstay their visas cannot reenter the United States for up to 10 years if they leave, and those who illegally enter the U.S. are not allowed to reenter at all. Federal law also requires that temporary visa applicants interview abroad at a U.S. consulate before they can receive their visas, so illegal immigrants are not eligible to regularize their status using the temporary visa programs.  The law does allow the U.S. Secretary of State to waive the consular interview requirement, but only on a case-by-case basis where in the national interest of the United States or in emergency situations.
    In June 2024, the Biden-Harris administration announced a new initiative to grant amnesty to over half a million illegal immigrants, including spouses of American citizens. As part of that initiative, President Biden and Vice President Harris waived the consular interview requirement for nonimmigrant visas, enabling immigrants who have illegally entered the U.S. or overstayed a visa to obtain temporary work visas. The Biden-Harris administration’s waiving of this policy encroaches on Congress’s authority and threatens to transform nonimmigrant visa programs into a tool to provide amnesty to illegal immigrants.

    VISA INTEGRITY PRESERVATION ACT:

    The Visa Integrity Preservation Act would amend the Immigration and Nationality Act to clarify that immigrants who have entered the U.S. illegally or overstayed a visa for more than 180 days are not eligible for a waiver of the in-person consular interview requirement and would instead be required under all circumstances to depart the U.S. for an interview before they could receive a nonimmigrant visa. Under existing law, they are barred from reentering the U.S. upon presenting for inspection at a Port of Entry.

    CO-SPONSORS:

    This legislation is also co-sponsored by Ted Cruz (R-Texas), Thom Tillis (R-N.C.), Jim Risch (R-Idaho), Mike Crapo (R-Idaho), Ted Budd (R-N.C.), Dan Sullivan (R-Alaska), Steve Daines (R-Mont.), Katie Britt (R-Ala.), Bill Hagerty (R-Tenn.), Pete Ricketts (R-Neb.), James Lankford (R-Okla.), and Tommy Tuberville (R-Ala.). 

    MIL OSI USA News

  • MIL-OSI USA: Scott, Colleagues to Lead Legislation to Replenish the SBA Disaster Loan Program Following Hurricanes Helene and Milton

    US Senate News:

    Source: United States Senator for South Carolina Tim Scott
    WASHINGTON — U.S. Senator Tim Scott (R-S.C.) joined Senators Thom Tillis (R-N.C.), Ted Budd (R-N.C.), Bill Cassidy, M.D. (R-La.), and Rick Scott (R-Fla.) in announcing plans to introduce legislation that would replenish the Small Business Administration (SBA) Disaster Loan Program. The senators plan to seek passage of the legislation when Congress returns to session. On October 15th, the SBA announced the Disaster Loan Fund had run out of money.
    “Hurricane Helene brought a level of devastation to South Carolina we haven’t seen since Hugo. With a natural disaster of this magnitude, Congress should take the opportunity to show leadership and help ease the pain of those who have lost everything,” said Senator Tim Scott. “Communities back home and in surrounding states have come together to recover, but it will take every possible effort to get us back to where we were.”
    “The SBA Disaster Loan Program running out of funds risks delays in processing the loans of those affected by Helene and Milton and their ability to get their lives back on track,” said Senator Tillis. “That is why I am leading legislation to replenish this fund when Congress returns to Washington, and I look forward to working across the aisle to pass a long-term disaster aid package that will provide additional resources to help make the victims of these hurricanes whole again.”
    “The citizens of Western North Carolina are some of the toughest and most resilient people in this country,” said Senator Budd. “As they recover and rebuild their communities, they must be able to access disaster loans from SBA. This recovery will take many years, and I look forward to working with my colleagues to cut through the delays and provide WNC with the resources they need as quickly as possible.”
    “Hurricanes Francine, Helene, and Milton hit us hard, but Louisianans and Americans are resilient,” said Dr. Cassidy. “This funding is essential to help small businesses recover from these storms and support our local economies.”
    “We cannot allow frontline federal agencies, like the SBA, to run out of disaster relief funds. This is especially important in the wake of Hurricanes Helene and Milton which devastated Florida, North Carolina and communities across the Southeast U.S.,” said Senator Rick Scott. “I continue to call on Leader Schumer to immediately reconvene the Senate so we can fund disaster relief functions at FEMA, the SBA, USDA and other agencies to get folks what they need and deserve. I won’t stop fighting to get this done and am proud to join my colleagues to introduce a bill that funds SBA disaster loans and makes sure the federal government is a reliable partner as families continue their recovery.”
    The Restoring an Economic Lifeline with Immediate Emergency Funding (Relief) Act would appropriate $550 million to fund the SBA Disaster Loan Program Account, which would provide $2.475B in lending capacity projected to last until the end of 2024.
    Read text of the bill here.

    MIL OSI USA News

  • MIL-OSI USA: Senators Carper, Coons, colleagues push administration to release additional seasonal work visas to support small businesses

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons
    WILMINGTON, Del. – U.S. Senators Tom Carper (D-Del.), Chris Coons (D-Del.), Angus King (I-Maine), Mike Rounds (R-S.D.), and 36 of their colleagues sent a bipartisan letter to Secretary Alejandro Mayorkas of the U.S. Department of Homeland Security (DHS) and Acting Secretary Julie Su of the U.S. Department of Labor, urging the departments to address the seasonal labor shortage by releasing the maximum allowable number of additional H-2B visas for fiscal year 2025.
    Employers must first make a concerted effort to hire American works for open positions, but when there are not enough Americans to fill temporary positions, H-2B visas help small businesses meet their labor needs. During the busy summer seasons, Delaware businesses – especially in the agriculture and tourism sectors – are often dependent on foreign workers given local staffing shortages. Releasing the maximum number of H-2B visas will help Delaware’s farms operate at full capacity and its beach towns remain open for visitors.
    “Many employers turn to the H-2B program to meet their workforce needs to not only sustain their businesses, but also support their American workers,” the senators wrote. “The H-2B program places requirements on employers to recruit U.S. workers, who are intentionally prioritized by the program and also receive demonstrated, positive impacts from their seasonal colleagues. In fact, a 2020 Government Accountability Office report concluded that ‘counties with H-2B employers generally had lower unemployment rates and higher average weekly wages than counties that do not have any H-2B employers.’
    “The most current employment data illustrates the workforce struggles of seasonal businesses nationwide,” the senators continued. “The Department of Labor’s Job Openings and Labor Turnover Surveys … show the rate of job openings have increased year over year for the industries that represent the top five H-2B occupations. As you know, the [fiscal year] 2025 H-2B first half fiscal year cap was met on September 18, 2024 – roughly three weeks earlier than the cap was met in [fiscal year] 2024. The result is that seasonal employers whose peak seasons are in late fall and winter are capped out before their period of seasonal need begins. Absent cap relief, these employers will be unable to receive temporary, U.S. government-vetted guest workers.”
    In addition to Senators Carper, Coons, King, and Rounds, the letter was signed by Senators John Barrasso (R-Wyo.), Michael Bennet (D-Colo.), Maria Cantwell (D-Wash.), Ben Cardin (D-Md.), Susan Collins (R-Maine), John Cornyn (R-Texas), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), John Fetterman (D-Pa.), Lindsey Graham (R-S.C.), Maggie Hassan (D-N.H.), George Helmy (D-N.J.), John Hickenlooper (D-Colo.), Cindy Hyde-Smith (R-Miss.), Tim Kaine (D-Va.), Amy Klobuchar (D-Minn.), Cynthia Lummis (R-Wyo.), Joe Manchin (I-W.Va.), Jerry Moran (R-Kan.), Lisa Murkowski (R-Alaska), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Dan Sullivan (R-Alaska), John Thune (R-S.D.), Thom Tillis (R-N.C.), Chris Van Hollen (D-Md.), Mark Warner (D-Va.), Raphael Warnock (D-Ga.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), Roger Wicker (R-Miss.), Ron Wyden (D-Ore.), Kyrsten Sinema (I-Ariz.), and Tim Scott (R-S.C.).
    The full text of the letter is available here.

    MIL OSI USA News

  • MIL-OSI USA: Luján Visits De Baca County and Meets with Local Health and Elected Officials, Tours Damage in Roswell and Chaves County From Devastating Flooding

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)
    Luján Has Visited All 33 Counties Across New Mexico
    Roswell, N.M. – This week, U.S. Senator Ben Ray Luján (D-N.M.) traveled to De Baca County to meet with local leaders and health officials and toured the damage in Roswell and Chaves County following deadly flooding earlier this month. Senator Luján has now visited all 33 counties in New Mexico.

    On Tuesday, Luján toured the De Baca Family Practice Clinic and met with local health officials to see the care the clinic is providing De Baca County residents and to discuss the importance of supporting rural health care. As a member of the Senate Committee on Health, Education, Labor, and Pensions, Luján has helped deliver funding for community health centers and is fighting to pass legislation to expand primary care across America.

    Next in De Baca County, Luján sat down for a meeting with local county officials. During the meeting, Luján discussed the importance of supporting rural communities and highlighted infrastructure funding he helped secure to improve roadway safety and boost the quality of life in rural New Mexico.
    “This week, I was honored to visit De Baca County to tour the De Baca Family Clinic and meet with local leaders,” said Senator Luján. “It was a privilege to meet with local health officials at the De Baca Family Practice Clinic to discuss how we can strengthen rural health care and meet with De Baca County officials to speak about investing in rural infrastructure. I am committed to supporting rural communities and will continue to fight to deliver federal resources to bolster the health care workforce, expand health centers, and strengthen infrastructure in rural New Mexico.”

    On Wednesday, Luján traveled to Roswell to meet with local officials and tour the damage caused by recent historic rainfall and deadly flooding. During the tour, Luján assessed the damage to local homes, businesses, and infrastructure caused by record rainfall earlier this month. On Monday, Luján, along with the New Mexico Congressional Delegation called on President Biden to swiftly approve the state’s request for a Major Disaster Declaration, which would unlock federal funds and disaster loans.
    “Seeing the devastation in Roswell and Chaves County is saddening and tragic. My prayers are with the families of the two victims that were killed from the flooding, and the many more who were injured or displaced,” said Senator Luján. “I thank the brave first responders and countless others who stepped in to assist in rescue efforts and pitched in to support each other during this disaster. While the road to recovery is just getting underway, I am committed to unlocking the federal resources impacted residents need to recover and will continue to work closely with local, state, and federal partners to accelerate recovery efforts.”

    MIL OSI USA News

  • MIL-OSI Russia: Materials for the Government meeting on October 31, 2024

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The following issues are planned to be considered at the meeting:

    1. On the draft amendments of the Government of the Russian Federation to the draft federal law No. 727320-8 “On the federal budget for 2025 and for the planning period of 2026 and 2027”

    The draft amendments are aimed at clarifying the provisions of the draft federal law adopted by the State Duma in the first reading.

    2. On the draft federal law “On Amendments to Article 2 of the Federal Law “On Assistance to the Development and Improvement of Management Efficiency in the Housing Sector and on Amendments to Certain Legislative Acts of the Russian Federation”

    The adoption of the bill will contribute to achieving the goals of the state program of the Russian Federation “Provision of affordable and comfortable housing and utilities to citizens of the Russian Federation”, approved by the Decree of the Government of the Russian Federation of December 30, 2017 No. 1710.

    3. On the draft federal law “On Amendments to Articles 340 and 342 of Part Two of the Tax Code of the Russian Federation”

    The bill is aimed at eliminating ambiguous interpretations of the current legislation on taxes and fees.

    4. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of bringing the provisions of certain federal laws into line with the provisions of the Civil Code of the Russian Federation)

    The bill is aimed at bringing legislative acts regulating the specifics of the civil-legal status of non-profit organizations of certain organizational-legal forms, types and kinds, as well as the special procedure for their state registration, into line with the provisions of the Civil Code.

    5. On the draft federal law “On Amendments to the Code of the Russian Federation on Administrative Offenses”

    The bill was prepared in order to secure the legal basis for the use of modern information technologies in proceedings on administrative offences.

    6. On the draft federal law “On Amendments to the Federal Law “On the Implementation of the Code of the Russian Federation on Administrative Offenses” (in terms of the use of electronic documents and regulation of remote participation in proceedings on administrative offenses)

    The bill was prepared with the aim of empowering individual government agencies to adopt regulatory legal acts governing the procedure for electronic document management and remote participation in proceedings on administrative offenses.

    7. On the draft federal law “On Amendments to the Labor Code of the Russian Federation” (in terms of providing guarantees to employees undergoing military service in connection with a special military operation, during the period of suspension of the employment contract, regardless of the term of the contract)

    The bill is aimed at protecting the labor rights of workers.

    8. On the draft amendments of the Government of the Russian Federation to the draft federal law No. 727321-8 “On the budget of the Pension and Social Insurance Fund of the Russian Federation for 2025 and for the planning period of 2026 and 2027”

    The draft amendments are aimed at clarifying certain provisions of the draft federal law in terms of the areas of expenditure carried out by the Social Fund of Russia and the names of budget classification codes.

    Moscow, October 30, 2024

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI Russia: Government meeting (2024, No. 32)

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    1. On the draft amendments of the Government of the Russian Federation to the draft federal law No. 727320-8 “On the federal budget for 2025 and for the planning period of 2026 and 2027”

    The draft amendments are aimed at clarifying the provisions of the draft federal law adopted by the State Duma in the first reading.

    2. On the draft federal law “On Amendments to Article 2 of the Federal Law “On Assistance to the Development and Improvement of Management Efficiency in the Housing Sector and on Amendments to Certain Legislative Acts of the Russian Federation”

    The adoption of the bill will contribute to achieving the goals of the state program of the Russian Federation “Provision of affordable and comfortable housing and utilities to citizens of the Russian Federation”, approved by the Decree of the Government of the Russian Federation of December 30, 2017 No. 1710.

    3. On the draft federal law “On Amendments to Articles 340 and 342 of Part Two of the Tax Code of the Russian Federation”

    The bill is aimed at eliminating ambiguous interpretations of the current legislation on taxes and fees.

    4. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of bringing the provisions of certain federal laws into line with the provisions of the Civil Code of the Russian Federation)

    The bill is aimed at bringing legislative acts regulating the specifics of the civil-legal status of non-profit organizations of certain organizational-legal forms, types and kinds, as well as the special procedure for their state registration, into line with the provisions of the Civil Code.

    5. On the draft federal law “On Amendments to the Code of the Russian Federation on Administrative Offenses”

    The bill was prepared in order to secure the legal basis for the use of modern information technologies in proceedings on administrative offences.

    6. On the draft federal law “On Amendments to the Federal Law “On the Implementation of the Code of the Russian Federation on Administrative Offenses” (in terms of the use of electronic documents and regulation of remote participation in proceedings on administrative offenses)

    The bill was prepared with the aim of empowering individual government agencies to adopt regulatory legal acts governing the procedure for electronic document management and remote participation in proceedings on administrative offenses.

    7. On the draft federal law “On Amendments to the Labor Code of the Russian Federation” (in terms of providing guarantees to employees undergoing military service in connection with a special military operation, during the period of suspension of the employment contract, regardless of the term of the contract)

    The bill is aimed at protecting the labor rights of workers.

    8. On the draft amendments of the Government of the Russian Federation to the draft federal law No. 727321-8 “On the budget of the Pension and Social Insurance Fund of the Russian Federation for 2025 and for the planning period of 2026 and 2027”

    The draft amendments are aimed at clarifying certain provisions of the draft federal law in terms of the areas of expenditure carried out by the Social Fund of Russia and the names of budget classification codes.

    Moscow, October 30, 2024

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI Russia: IMF Executive Board Concludes the Seventh and Eighth Reviews under the Extended Fund Facility and Extended Credit Facility and Review under the Resilience and Sustainability Facility Arrangement with Kenya

    Source: IMF – News in Russian

    October 30, 2024

    • The Executive Board’s decision to complete the reviews enables a combined disbursement of around US$606 million to support the authorities’ efforts to rebuild fiscal and external buffers, including to enhance resilience to climate shocks.
    • Resolution of the exceptional external financing pressure earlier this year has revived market confidence, aided stabilization of the shilling, and enabled a faster buildup of foreign exchange reserves. However, large revenue shortfalls in FY2023/24 and pushback against revenue measures owing to governance concerns pose a challenge to the ongoing fiscal consolidation efforts.
    • The Kenyan authorities face a difficult balancing act of boosting domestic revenues to protect critical spending in priority areas while meeting heavy debt service obligations. Delivering on this would call for improving governance and transparency to restore public trust in the effective use of public resources.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the seventh and the eighth reviews under the extended arrangement under the Extended Fund Facility (EFF) and the arrangement under the Extended Credit Facility (ECF), approved in April 2021, and a review under the Resilience and Sustainability Facility (RSF) arrangement, approved in July 2023, with Kenya.

    The EFF/ECF arrangements aim to support Kenya’s program to address debt vulnerabilities while safeguarding resources for priority social and developmental needs; build resilience to shocks; improve governance and transparency; and support broader economic reforms to realize the country’s medium-term potential. The RSF arrangement aims to reinforce Kenya’s strong efforts to address climate-related challenges and catalyze further private climate finance.

    The Executive Board’s decision allows for the immediate disbursements of SDR365.28 million (about US$485.8 million) under the EFF/ECF arrangements and SDR90.47 million (about US$120.3 million) under the RSF arrangement. In addition, following the resolution of exceptional financing needs earlier this year, the Board approved a reduction in the total access under the EFF/ECF arrangements from exceptional access, approved in January 2024 (see PR24/12), to within the normal access limits and a rebalancing of access toward the zero-interest ECF arrangement. Together with the recent changes to the IMF’s charges and surcharges policy, these adjustments would lower Kenya’s interest payments to the IMF.

    Under the EFF/ECF arrangements, total IMF financial commitment stands at SDR2.714 billion (about US$3.61 billion), of which SDR2.343 billion (about US$3.12 billion) has been approved for disbursement. For the RSF arrangement, the corresponding amounts are SDR407.1 million (about US$541.3 million) and SDR135.70 million (about US$180.4 million), respectively.

    In completing the reviews, the Executive Board recognized that the resolution of the exceptional external financing pressure earlier this year has revived market confidence, supporting shilling stabilization and facilitating faster buildup of reserves. However, the fiscal consolidation efforts have faced headwinds following a sizable tax revenue shortfall in FY2023/24 and withdrawal of the 2024 Finance Bill after widespread public protests. Nevertheless, the EFF/ECF program has delivered on reducing inflation, strengthening external buffers, and stabilizing the exchange rate. In addition, the Board approved waivers of non-observance for the end-December 2023 tax revenue and the end-June 2024 primary budget balance and tax revenue targets based on the corrective action taken through the passage of the Supplementary FY2024/25 Budget, which together with medium-term fiscal consolidation would help reduce debt vulnerabilities, a core objective of the program. The Board also completed review under the RSF arrangement and approved the disbursements associated with two reform measures implemented.

    The Board emphasized that sustaining progress requires improving the quality of fiscal adjustment, addressing fiscal and financial sector vulnerabilities, advancing governance reforms, and implementing the structural agenda, including climate-related reforms. Continued efforts to support the vulnerable population, broadening the socio-political support for reforms, and ensuring agile policymaking will also be necessary.

    At the conclusion of the Executive Board’s discussion, Ms. Gita Gopinath, First Deputy Managing Director of the IMF and Acting Chair, made the following statement:

    “Kenya’s economy remains resilient, with growth above the regional average, inflation decelerating, and external inflows supporting the shilling and a buildup of external buffers, despite a difficult socio-economic environment.

    “The EFF/ECF and the RSF arrangements continue to support the authorities’ efforts to anchor macroeconomic stability, reduce debt vulnerabilities, promote reforms, and mitigate climate-related risks.

    “Performance since the last reviews of these arrangements has weakened. While accumulation of foreign exchange reserves and inflation were better than expected, the fiscal performance fell significantly short of the targets. The revenue and export underperformances increased debt vulnerabilities. Implementation of several reforms was also delayed.

    “In this context, a difficult adjustment path lies ahead. A credible fiscal consolidation strategy remains central to addressing debt vulnerabilities while protecting social and development spending. Reforms to make the tax regime more efficient, equitable, and progressive as well as strengthening accountability, transparency, and efficiency of public finances will help garner political and societal support for reforms. Clearly communicating the necessity and benefits of the reforms is paramount.

    “Given the elevated risks around the fiscal strategy, policymaking needs to be agile. Contingency planning remains critical, with policies adapting to evolving outcomes to safeguard stability and ensure that program objectives continue to be met.

    “The Central Bank of Kenya’s decisive actions have supported price stability and external sustainability, including through institutional changes to improve the functioning of the monetary policy operational framework and the money and foreign exchange markets. Exchange rate flexibility is vital to improve resilience to external shocks and competitiveness. Addressing banks’ deteriorating asset quality and emerging risks requires close monitoring and strengthened oversight.

    “Fast-tracking key reforms would raise medium-term potential. In particular, addressing deficiencies in governance, anti-corruption frameworks, and AML/CFT, including leveraging the requested governance diagnostic, is essential for garnering public trust and enhancing policy credibility, and for attracting fresh investments, including finance to build climate resilience.”

    Kenya: Selected Economic Indicators, 2021–2026

    2021

    2022

    2023

    2024

    2025

    2026

    Act.

    Act.

    Act.

    Est./ Proj.

    Proj.

    Proj.

    Output

    Real GDP growth (percent)

    7.6

    4.9

    5.6

    5.0

    5.0

    5.0

    Prices

    Inflation –average (percent)

    6.1

    7.6

    7.7

    5.0

    5.3

    5.1

    Central government finances (fiscal year)1

    Total revenue (percent of GDP)

    16.1

    17.5

    16.7

    17.2

    18.0

    18.7

    Expenditure and net lending (percent of GDP)

    24.4

    23.7

    22.5

    22.8

    22.3

    22.7

    Overall fiscal balance (percent of GDP)

    –8.3

    –6.2

    –5.6

    –5.3

    –4.3

    –4.0

    Public debt

    Gross nominal debt (percent of GDP)

    68.1

    67.8

    73.1

    67.0

    68.8

    68.8

    Gross external debt (percent of GDP)

    34.7

    34.6

    40.4

    34.9

    37.0

    37.4

    Money and Credit (end of period)

    Broad money (percent change)

    6.1

    7.1

    21.3

    5.6

    10.3

    10.2

    Credit to private sector (percent change)

    8.6

    12.5

    13.9

    3.3

    12.4

    11.2

    Policy rate, end-of-period (percent)

    7.0

    8.75

    12.50

    Balance of payments

    Current account balance (percent of GDP)

    –5.2

    –5.0

    –4.0

    –3.9

    –4.0

    –4.1

    Gross international reserves (in months of imports)

    4.7

    4.4

    3.8

    4.1

    4.1

    4.2

    Exchange rate

    REER (average percent change; positive = appreciation)

    –2.6

    2.2

    –8.3

    Sources: Kenyan authorities; and IMF staff estimates and projections.

    1 Based on fiscal year (i.e., 2025 represents fiscal year 2024/25, covering July 2024–June 2025).

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/30/pr-24398-kenya-imf-concludes-7th-and-8th-rev-under-the-eff-and-ecf-and-rev-under-rsf-arrangement

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI Canada: Alberta strengthens child care safety

    Source: Government of Canada regional news

    [embedded content]

    Alberta’s government recognizes that the vast majority of providers are dedicated to delivering safe, quality care. However, when child safety is compromised, action is necessary. Proposed changes to the Early Learning and Child Care Amendment Act, 2024, would help the government ensure child safety by strengthening its ability to hold non-compliant providers accountable, speeding up its ability to address issues in care and upholding public trust in the child-care system.

    The health and safety of children is the government’s top priority. Additional amendments would allow the government’s child-care licensing team to impose penalties on licence holders and educators who jeopardize child safety and who do not meet quality standards. By making these changes, Alberta would align with other Canadian jurisdictions.

    “Albertans deserve to have confidence in their child-care system. They deserve transparent, high-quality and safe care for their kids. When parents, guardians and caregivers go to work or school, they need to know their children are safe in their child-care setting. The Early Learning and Child Care Amendment Act, 2024, would strengthen the tools available to enforce quality care and give parents peace of mind that their government has their back.”

    Matt Jones, Minister of Jobs, Economy and Trade

    To build further trust in Alberta’s child-care system, amendments to the act would ensure parents have easy access to vital information about their kids’ care. In addition to the non-compliances that are already posted online, these changes would put more information at the fingertips of parents, including the certification status of early childhood educators and stop orders against unlicensed providers.  This would help parents make informed choices about their child’s care.

    Amendments would also enhance the government’s ability to target specific issues at a child-care facility while allowing for the temporary closure of only part of a child-care program, rather than closing the entire program. This would help minimize impacts to parents and children.

    The vast majority of providers consistently provide safe, quality care. These programs will remain unaffected, fully able to provide child care to their communities.

    “As a program manager of a mid-sized child-care centre, I am proud to support the Early Learning and Child Care Amendment Act. As an established child-care provider, parents in my community trust in me to provide quality care. I am more than happy to provide parents with every reassurance they need so they can go to work and know their kids are safe, healthy and well taken care of in my facility. It is great to see the province stepping up and putting forward these important changes.”

    Bernice Taylor, program manager, Early Childcare Development Centre

    If passed, the updated Early Learning and Child Care Act would address the recommendation from the Food Safety and Licensed Facility-Based Child Care Review Panel to clearly state that all facility-based licence holders must comply with applicable zoning, health and safety legislation.

    Alberta’s government continues to work with child-care providers, the federal government and parents to ensure the child-care system works within the province’s unique, mixed-market child-care system.

    “Legislation, policies and processes across authorities must be cohesive and complementary if they are to be effective. As a member of the Food Safety and Licensed Facility-Based Child Care Review Panel, an expert in food safety standards and an advocate for food safety, I commend Alberta’s government for their proposed amendments to the Early Learning and Child Care Act. These changes prioritize the health and well-being of our children by strengthening the understanding of food safety and food handling requirements of child-care providers and regulators.”

    Dr. Lynn McMullen, professor emerita, University of Alberta

    Related information

    • Early Learning and Child Care Act
    • Finding and Choosing Child Care
    • Bill 25: Early Learning and Child Care Amendment Act, 2024

    Related news 

    • Enhancing food safety in child-care settings (Jul. 29, 2024)

    Multimedia

    • Watch the news conference
    • Listen to the news conference

    MIL OSI Canada News

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

    Source: Green Party

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

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

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

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

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

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

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

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

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

    MIL OSI New Zealand News

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

    Source: New Zealand Government Kainga Ora

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

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

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

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

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

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

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

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

    Page updated: 31 October 2024

    MIL OSI New Zealand News

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

    Source: US National Renewable Energy Laboratory

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Read the full HelioCon 2024 Annual Report.

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

    MIL OSI USA News

  • MIL-OSI Australia: Outstanding service recognised at Wallan

    Source: Victoria Country Fire Authority

    Deputy Group Officer Peter Roylance received the CFA Outstanding Service Medal (pictured with his wife Jenny)

    Wallan Fire Brigade Members and their families and friends gathered on Saturday 19 October to recognise more than 350 years of combined service to CFA and the community.

    More than 80 past and present CFA members, family and friends were joined by Interim CEO Robyn Harris and Acting Commander Paul Brislin at the Wallan Bowls Club for the annual Wallan Fire Brigade presentation dinner.

    Captain Tim Benetti thanked members for their tireless commitment to the brigade and acknowledged the family support that enables CFA volunteers to do what they do.

    “You are the lifeblood of the brigade and I’d like to thank all of you for the time you’ve given to helping protect our community over the past 12 months,” Tim said.

    “I’d like to thank the unsung heroes – the wives, husbands, partners, mums, dads, children and others…. a heartfelt thank you from a captain who’s job would be much more difficult if it wasn’t for your support.”

    Tim also spoke about the incredibly busy year for the brigade, responding to 336 calls last financial year – the busiest year in the brigade’s 87-year history – and the brigade’s achievements including the delivery of the new heavy tanker in May.

    Interim CEO Robyn Harris and Acting Commander Paul Brislin presented CFA service awards to Kacie Graham (five years), Brenton Allan and Chris Hill (10 years), Taylor Campbell, Chris Walker, Braydan Fletcher, Hayley Hanson, Justin Cardiff, Andrew South and Sue Howitt (15 years), Hayden McMennemin (20 years) and John Meldrum (35 years).

    National Emergency Medals for the 2019-20 bushfires were presented to Andrew South, Hayley Hanson, Peter Roylance and Nathan Anderson. 

    National Medals were presented to Justin Cardiff, Travis Gray, Andrew South, Allie Tuddin, John Tuddin, Nathan Anderson (1st Clasp), Deb Hanson (1st Clasp) and Colin Prentice (1st Clasp).

    Deputy Group Officer and Brigade President Peter Roylance, who MCd the evening, was presented with the CFA’s highest internal award, the Outstanding Service Medal to recognise his more than half a century dedicated to the protection of life and property from fire and other emergencies.

    Peter joined Epping Fire Brigade in 1971 at age 15 and has maintained an exceptional level of commitment to CFA throughout his volunteer service. He has held an elected leadership role in a brigade or group (often at the same time) for the past 49 years and has mentored countless volunteers on their CFA journeys.

    In accepting his award, Peter thanked his family and brigade members for their support and reflected on his years of service.

    “These things don’t happen without family support and that’s been a big part of my achievement throughout the years of service,” Peter said.

    “I just love being there and listening to the different opinions and the conversations, from the newest member of the organisation to the 70-year-old member. It all means something in the big mix of things.

    “The fire brigade became my real passion at age 15, because in those days you could become a senior firefighter at 15. From the word go, I was just totally dedicated totally to CFA and it has just been there all that time.

    “Thank you very much. I’m just absolutely stoked.”

    The evening’s formalities concluded with the presentation of internal brigade awards to Captain Tim Benetti, Firefighter Edward Martin and Firefighter Chris Answer, and the unveiling of a new Brigade Life Members honour board.

    Live music and raffles entertained members into the night.

    Photos courtesy of Uniform Photography.

    Submitted by Christopher Brockwell

    MIL OSI News