Category: Taxation

  • MIL-OSI Security: Houston sex trafficker gets 14 years for luring minor through social media

    Source: Office of United States Attorneys

    HOUSTON – A 25-year-old man has been sentenced for coercion and enticement of a minor, announced U.S. Attorney Nicholas J. Ganjei.

    Michael Ramone Hooks pleaded guilty Sept. 27, 2024.

    U.S. District Judge Sim Lake considered victim letters and sentenced Hooks to 168 months in prison. He was also ordered to pay $6087 in restitution to a known victim and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Hooks will also be ordered to register as a sex offender.

    At the time of his plea, Hooks admitted to recruiting the 16-year-old victim to engage in prostitution via Instagram, text messages and video calls.

    He communicated via cell phone with the minor and lured her away from a known sex trafficker, Antonio Dario Osario-Avelar aka Pressure. Prior to Hooks’ attempt to lure the minor victim away to work for him, Osario-Avelar had caused to her to engage in commercial sex.

    Hooks knew the victim was a minor. Law enforcement discovered text messages revealing that they discussed her age. The victim agreed to pay Hooks a “choosing fee,” which is a fee the victim pays a trafficker for them to be their “pimp.”

    In August 2023, authorities arrested Hooks and recovered the minor victim before she could join up with him.

    Osario-Avelar was previously sentenced to 375 months in federal prison for his conduct in a separate case before U.S. District Judge George C. Hanks.

    “This case is a reminder that sex trafficking is happening in our city, even if it is not always immediately visible,” said Ganjei. “This case was, of course, a great hit against this specific defendant, but our larger goal is nothing short of putting the Houston sex trafficking trade completely out of business.”

    He will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

    Immigration and Customs Enforcement – Homeland Security Investigations conducted the investigation with the assistance of the Human Trafficking Rescue Alliance and Houston Police Department (HPD).

    Assistant U.S. Attorney (AUSA) Celia Moyer and former AUSA Sherri Zack prosecuted the case.

    HTRA law enforcement includes members of HPD, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

    Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

    MIL Security OSI

  • MIL-OSI USA: Governor Polis Signs Bills into Law, Takes Action on Bills

    Source: US State of Colorado

    Governor Polis signed bills to simplify Coloradans’ taxes, protect the state from federal overreach, and more

    DENVER – Today, Governor Polis signed bills into law administratively and took action on bills.

    Governor Polis signed the following bills into law administratively:

    • HB25-1296 – Tax Expenditure Adjustment, sponsored by Representatives Lorena Garcia and Yara Zokaie, and Senator Mike Weissman. This bill is bipartisan.
    • HB25-1312 – Legal Protections For Transgender Individuals, sponsored by Representatives Lorena García and Rebekah Stewart and Senators Faith Winter and Chris Kolker
    • HB25-1321 – Support Against Adverse Federal Action, sponsored by Representatives Julie McCluskie and Shannon Bird, and Senators Jeff Bridges and Judy Amabile.
    • HB25-1305 – Repeal Date Extension for Colorado Department of Early Childhood Report, sponsored by Representative Cecelia Espenoza and Brandi Bradley, and Senators Tony Exum and Marc Catlin. This bill is bipartisan.
    • HB25-1306 – Alphabetizing Plumbing Profession Definitions, sponsored by Representatives Stephanie Luck and Cecelia Espenoza, and Senators Matt Ball and Janice Rich. This bill is bipartisan.
    • SB25-054 – Mining Reclamation & Interstate Compact, sponsored by Senators Cleave Simpson and Jeff Bridges, and Representatives Matthew Martinez and Karen McCormick. This bill is bipartisan.
    • SB25-204 – Revision to Local Government Utility Relocation Statute, sponsored by Senators Marc Catlin and Matt Ball, and Representatives Michael Carter and Stephanie Luck. This bill is bipartisan.

    Governor Polis vetoed the following bills:

    • SB25-005 – Worker Protection Collective Bargaining, sponsored by Senators Robert Rodriguez and Jessie Danielson, and Representatives Javier Mabrey and Jennifer Bacon.
    • HB25-1147 – Fairness & Transparency in Municipal Court, sponsored by Representatives Javier Mabrey and Elizabeth Velasco, and Senators Judy Amabile and Mike Weissman.
    • HB25-1065 – Jury Duty Opt-Out for Certain People, sponsored by Representatives Carlos Barron and Bob Marshall, and Senator Lisa Frizell.

    ###
     

    MIL OSI USA News

  • MIL-OSI United Nations: Experts of the Committee on the Rights of the Child Praise Iraq’s Child Rights Strategy, Raise Issues Concerning Child Marriage and Corporal Punishment

    Source: United Nations – Geneva

    The Committee on the Rights of the Child today concluded its consideration of the fifth and sixth combined periodic reports of Iraq under the Convention on the Rights of the Child, with Committee Experts praising the State’s national child rights strategy and raising questions about child marriage and corporal punishment.

    Benoit Van Keirsbilck, Committee Expert and Taskforce Coordinator for Iraq, said that Iraq had devoted efforts to improving its situation after periods of violence.  The Committee had seen several improvements in terms of the rights of the child, including the State’s commendable strategy on children’s rights.

    Several Experts expressed concern regarding the amendment in 2025 to the civil status law, which reportedly allowed for children to marry from the age of nine.  They asked whether appeals had been made to nullify the amendment.  Mr. Van Keirsbilck said 28 per cent of Iraqi girls were married before the age of 18 and seven per cent before the age of 15. What measures were in place to prevent child marriage?

    Mr. Van Keirsbilck also said the Penal Code allowed parents and educators to use corporal punishment in family and educational settings.  Some 81 per cent of children had reportedly been subjected to some form of corporal punishment.  How was the State party addressing this?

    In an opening statement, Abdulkarim Hashem Mustafa, Permanent Representative of Iraq to the United Nations Office at Geneva, said the Government placed the rights of the child at the heart of its national priorities, and had adopted the national strategy for child protection, which aimed to create a safe and inclusive environment that ensured the well-being and development of children.

    Khalid Salam Saeed, Minster of Justice of Iraq and head of the delegation, in his opening statement, said Iraq had exerted efforts to comply with the Convention and the Committee’s recommendations, despite the major challenges it had faced due to aggression from the terrorist group Daesh.  As a result of its efforts for children, Iraq had been removed from the United Nations Secretary-General’s list of countries that violated children’s rights.

    On child marriage, the delegation said Iraq considered cultural circumstances when setting the minimum age of marriage.  The amendment to the civil status law had been assessed by Parliament and workshops with civil society.  Marriage from nine years of age was not permitted by the law, which permitted marriages from 18 years, or from 15 years when the children involved petitioned courts directly.  Persons who facilitated marriages outside the legal framework were liable for punishment.

    Regarding corporal punishment, the delegation said the Higher Supreme Court had ruled that the Criminal Code did not allow the use of violence against children or students in any context.  There were many cases in which parents and teachers who treated children violently had been punished.

    In closing remarks, Mr. Van Keirsbilck said the dialogue had revealed areas in which Iraq had made important progress since 2015, as well as issues that needed to be addressed.  The future law on child protection seemed extremely promising; the Committee hoped that it would be adopted soon and fully implemented, he said.

    In his concluding remarks, Mr. Saeed said Iraq had presented its progress in implementing the Convention and the recommendations of the Committee. The State party looked forward to receiving the Committee’s recommendations, which would help to consolidate children’s rights in the country.  Iraq was determined to promote human rights based on the principles of equality and social justice.

    Sopio Kiladze, Committee Chair, said in concluding remarks that the Committee and the State party shared a common goal of improving the situation of children in Iraq.  The Committee congratulated the State party on the progress it had made and looked forward to hearing about the future progress that the State would make for children in the next dialogue.

    The delegation of Iraq consisted of representatives from the Prime Minister’s Office; General Secretariat of the Iraqi Cabinet; Ministry of Foreign Affairs; Ministry of Labour and Social Affairs; Ministry of Justice; Scientific Supervision and Evaluation Agency; Directorate-General for Curricula; Directorate-General of Planning and Follow-Up; Human Rights Directorate; Kurdistan Regional Government; and the Permanent Mission of Iraq to the United Nations Office at Geneva.

    The Committee will issue concluding observations on the report of Iraq at the end of its ninety-ninth session on 30 May. Those, and other documents relating to the Committee’s work, including reports submitted by States parties, will be available on the session’s webpage.  Summaries of the public meetings of the Committee can be found here, while webcasts of the public meetings can be found here.

    The Committee will next meet in public on Tuesday, 20 May at 3 p.m. to consider the combined sixth and seventh periodic reports of Romania (CRC/C/ROU/6-7).

    Report

    The Committee has before it the fifth and sixth combined periodic reports of Iraq (CRC/C/IRQ/5-6).

    Presentation of Report

    ABDULKARIM HASHEM MUSTAFA, Permanent Representative of Iraq to the United Nations Office at Geneva, said Iraq reaffirmed its commitment to respect and implement its international obligations under the Convention and to include its provisions in national policies, despite the complex challenges that the country had faced during the past decades. The Government placed the rights of the child at the heart of its national priorities, and had adopted the national strategy for child protection, which aimed to create a safe and inclusive environment that ensured the well-being and development of children. The State party had strengthened the national legislative framework by amending several relevant laws to ensure their compatibility with international standards, including the draft child protection law currently before the Parliament.  Iraq affirmed that the protection of children’s rights was both a national responsibility and a humanitarian and moral obligation.

    KHALID SALAM SAEED, Minster of Justice of Iraq and head of the delegation, said Iraq had exerted efforts to comply with the Convention and the Committee’s recommendations. Iraq faced major challenges due to aggression from the terrorist group Daesh, which had led to violations of the rights of the child.  Iraq had undertaken efforts to prevent the spread of terrorism and violence in the country, provide reparation to victims, support the transfer of displaced persons, and prosecute terrorist crimes.  The State party had transferred or rehabilitated more than 17,000 victims of the violence.

    Seeking to bring its legislation in line with international standards, the State party had implemented several laws, including the legal aid act, the amendment to the act on people with disabilities, the health coverage act, the social services act, the act on the integration of minors, and a draft law against domestic violence.

    Several policies and strategies had also been developed, including the technical development strategy.  The State party had developed policies on the protection of families, and had continued work to investigate human trafficking.  It had set up a hotline for reporting gender-based violence and had also established women’s and girls’ welfare units to combat violence against women and girls. The State party had developed strategies to improve the security environment, reduce poverty and support families, which included measures to increase the number of persons receiving social protection assistance, establish family protection units, and expand the provision of vaccinations.

    The Iraqi Government was promoting access to education for all by implementing the act on compulsory education and providing school supplies and scholarships to children in need.  The Government had completed the construction and renovation of 6,500 schools, and construction was continuing.  Iraq aimed to increase the resources and capacities of educational institutions to improve the quality of education they provided.

    The State party had also developed a strategy for the rehabilitation of minors, establishing juvenile rehabilitation units.  The Constitution had been amended and laws established to criminalise prostitution, trafficking in illegal substances, and the sale of children.  Iraqi laws prohibited the conscription of young people under the age of 18, and many policies had been implemented to prevent the involvement of children in terrorist activities.  The State party had also set up a body to monitor the recommendations of international bodies.  As a result of these efforts, Iraq had been removed from the United Nations Secretary-General’s list of countries that violated children’s rights.

    DINDAR ZEBARI, Coordinator of International Recommendations, Kurdistan Regional Government, said Kurdistan had developed a regional development plan for 2021–2025, which included 11 recommendations on children’s rights, of which nine had been implemented.  In 2023, the Kurdistan Council of Ministers approved a policy aimed at protecting children. Kurdistan had raised the age of criminal responsibility to 11 years, banned the death penalty for children, converted detention sentences to rehabilitation programmes, and reactivated juvenile courts. 

    In the fight against human trafficking, a national campaign was launched that had led to the arrest of 79 people and the sentencing of 12 traffickers.  Kurdistan hosted 865,000 internally displaced persons and refugees, and the Government provided this population with shelter, education, and health care. 

    Measures implemented by the Government had led to a 42 per cent reduction in under-five mortality; the rate was now far lower than the global average.  The Government provided social welfare services to approximately 130 children annually, and new care homes for girls had been opened.  Some 550 children from government nurseries and 53 from the surrogacy system had been placed in foster families.  Procedures for issuing parental certificates to children of unknown origin were carried out in accordance with the civil status law, in a manner that respected their privacy and preserved their dignity.

    Questions by Committee Experts 

    BENOIT VAN KEIRSBILCK, Committee Expert and Taskforce Coordinator for Iraq, said that Iraq had devoted a range of efforts to improving its situation after periods of violence.  The Committee had seen several improvements in terms of the rights of the child, including the State’s commendable strategy on children’s rights.  However, challenges remained, and the Committee would address these.

    Iraq maintained its reservation to article 14 of the Convention.  Why did it oppose children having the right to protest?  Was the Convention used by courts and the Parliament?  When would the planned child protection law be adopted? Would this law address all forms of violence against children?  How did legislation on refugees that would soon be adopted address refugee children’s rights?

    Who was responsible for coordinating and implementing the State’s strategy for children?  What budget was set aside for the strategy and how would its implementation be assessed?  How would the State party implement the proposed child protection information management system?  Did it calculate the percentage of the budget dedicated to children’s policies, and was it working on addressing issues with tax collection to increase funds for children’s policies?  How did the State party ensure that the data it collected on children was accurate?

    Did the State party plan to ratify the Optional Protocol on the individual complaints procedure?  Did children whose rights were violated have access to reparations?  How could they lodge complaints?  There were reports that police had refused to register some children’s complaints.

    The Committee welcomed that Iraq’s National Human Rights Commission had “A” status under the Paris Principles. There had been a legal complaint against the former Commissioner of the National Human Rights Commission.  What progress had been made in investigating this case?  Were there plans to set up an ombudsperson for children?  How had cuts in international funding affected programmes promoting children’s rights in Iraq?

    Sexual exploitation of children remained a major concern.  What measures were in place to support child victims?  The Penal Code allowed parents and educators to use corporal punishment in family and educational settings.  Some 81 per cent of children had reportedly been subjected to some form of corporal punishment.  How was the State party addressing this?

    Iraqi law still allowed children to marry from age 15, and there had been a draft law that sought to lower the age of marriage for girls to nine.  What was the status of this law?  What measures were in place to prevent child marriage?  Sexual slavery was still practiced in some parts of the country.  How did the State party support child victims of sexual slavery?  How many children who were affected by the activities of Daesh had the State party rehabilitated?

    MARIANA IANACHEVICI, Committee Expert and Taskforce Member, welcomed the State party’s efforts to incorporate the principles of the Convention in its legal and policy frameworks, and to prevent discrimination.  The State party taught minority languages in schools and had implemented measures to prevent discrimination against children with disabilities in schools.  Were there plans to develop exclusive anti-discrimination legislation that addressed discrimination against children?  How would the State promote access to social services for girls in remote communities? How was the principle of the best interests of the child reflected in national legislation?  What mechanisms were in place to ensure that children’s views were considered when assessing what was in their best interests?

    What measures were in place to ensure that no children were sentenced to the death penalty?  How was the civil registration system being strengthened to ensure that all children, including children born in areas formerly controlled by Daesh, were registered?  What measures were in place to prevent infanticide?

    How was the State party ensuring that the views of children were considered in laws, policies and practices?  How was the State party promoting the meaningful participation of children from disadvantaged groups in the development of policies and laws?

    The Expert welcomed efforts to support children returning from northern Syria.  What was the rationale behind 2025 amendments to the personal status law?  There were concerns that these amendments could undermine existing safeguards for women and children.  How did the State party ensure that this legislation was in line with the Convention, and that women-led households would continue to receive adequate social support?  What efforts were being made to harmonise religious court rulings with international standards? 

    What efforts were being made to expand family-based care for children whose parents could no longer care for them, and to make foster care a viable alternative for families? Did the State party pursue systematic family reunification when appropriate?

    RINCHEN CHOPHEL, Committee Expert and Taskforce Member, welcomed legislation from 2006 that allowed women to pass on their nationality to their children.  Did children born to unmarried parents receive birth certificates?  What measures were in place to regulate the registration of children born in armed conflict situations?  The Expert expressed concern about reports that the children of parents who were not of Muslim faith, particularly persons of the Baha’i faith, were not registered.  What measures were in place to prevent this?  What measures had been adopted to protect children from online risks? What was the status of the draft cybercrime law?

    BENYAM DAWIT MEZMUR, Committee Expert and Taskforce Member, said that there had been significant progress for children in Iraq over the last 10 years.  What awareness raising campaigns were being carried out to address negative societal attitudes related to children with disabilities?  What had been the impact of legislative revisions related to persons with disabilities?  How had the State party mainstreamed disability rights?  What progress had been made in developing a central database on children with disabilities?  The Committee welcomed the “disability stipend” for children with disabilities who attended schools.  Were there plans to extend this to children with disabilities who did not attend school? Assessments of children with disabilities tended to focus on medical impairments; were there plans to change this approach?  The Kurdistan Government had introduced a universal stipend for children, but its reach appeared to be limited.  What efforts had been made to extend it?

    Responses by the Delegation

    The delegation said most of the Iraqi population was Muslim, but the Government respected religious plurality and had implemented mechanisms to protect religious diversity.  Iraq had expressed reservations related to article 14 of the Convention as its law was based on the Islamic Sharia, but the State party’s laws promoted the freedom of religion.  There was one case related to the rights of a 15-year-old girl in which the court had referenced the Convention.

    The State party paid salaries to carers of children with disabilities; recently, this salary had been increased. Assistive devices were provided to children with disabilities, who were integrated into public schools.  Mobile teams aided children with disabilities in their homes and smart identification cards facilitated access to social services for children with disabilities.  The State party also provided primary care to children with disabilities in conflict settings.

    The Government had adopted several measures promoting the participation of children in decision-making processes, establishing children’s parliaments in more than 420 schools. Non-governmental organizations promoted the participation of children in decision-making, providing them with training on advocacy.

    Around 30 shelters had been established that provided services to vulnerable children, including orphans and victims of domestic violence.  The shelters provided food and access to education and technical training.  Health examinations were provided for children in these shelters every three months.

    The Constitution included articles that prohibited discrimination and guaranteed protection for women and children. Several laws had been adopted to protect minorities, including a law on reparations for Yezidi refugees who had suffered human rights violations during armed conflict.

    The State party sought to adopt a draft law on anti-discrimination that was currently before Parliament.  The law would prevent discrimination based on religion and other factors.  There were several schools that taught Christian values.  A centre had been established that taught the minority Assyrian language, and several public schools also taught the language.

    The Ministry of Interior accepted complaints from children through a dedicated hotline, which complied with international standards; the children’s support unit; and through hospitals and schools.  A range of legal measures had been adopted to combat sexual exploitation.  State legislation stipulated punishments for violations of children’s rights online.

    Children were guaranteed the right to an identity by the law on identity and other legislative measures.  The State party had sought to identify children with unknown parents born in the Daesh era and provide them with identity documents; 120,000 persons in this situation had been registered to date.

    The State party considered cultural circumstances when setting the minimum age of marriage.  It was re-evaluating the law on child marriage. Marriage could be approved from age 15 if it was in the child’s interests.  There was currently no draft law defining the best interests of the child, but some texts recognised the principle, such as the personal status law, which called for an assessment of the best interests of the child in foster arrangements.

    The State party was proud of its achievements in rehabilitating child refugees.  A centre had been established in 2021 that hosted 17,000 individuals. Currently, 7,000 children resided in the centre, who benefited from cultural activities, education and social rehabilitation services.  More than 6,000 children had been supported to return to their homes.  Most refugees who came from Syrian camps were women and children.  They were provided with various support services, and more than 6,000 of these persons had been supported to return to their homes.

    More than nine trillion dinars had been allocated to the health sector, more than 70 per cent of which benefitted women and children.  Hospital workers had been trained on dealing with victims of violence against women and children, and medical units providing care to victims had been established. In refugee camps, more than 30,000 vaccinations had been provided to children.  There were governorate programmes on sexual and reproductive health and nutrition that benefitted youth.  A draft law on mental health had been developed and programmes were in place to provide psychosocial care for students in schools and universities.

    Training sessions had been organised on the Convention, international humanitarian law, and the rights of children in armed conflict, for members of the armed forces.  The Government had contributed to demining more than 18 million cluster munitions in former conflict zones.

    The Constitutional Court had ruled that article 41 of the Criminal Code did not allow the use of violence against children or students in any context; it aimed only at imposing discipline and rehabilitation.  There were many cases in which parents and teachers who treated children violently had been punished.

    Child benefits were allocated to more than 3.5 million children, while around 3,000 orphaned children also received benefits, and more than two million children received scholarships. Around 154,000 children received disability benefits.  Some 12 trillion dinars were invested in children’s education in 2024.  Children with disabilities were integrated into mainstream education.

    Questions by Committee Experts

    BENYAM DAWIT MEZMUR, Committee Expert and Taskforce Member, said that Iraq relied on external support for health sector financing.  What measures were in place to reduce reliance on external support?  The Committee commended the State party’s efforts in immunisation, but there were low immunisation rates in conflict areas and rural areas.  How was the Government addressing this?

    Obesity rates were rising among Iraqi children, anaemia was an issue for women, and Iraq had low breastfeeding rates. How were these issues being addressed? How was the State party working to reduce the exposure of children to tobacco and unhealthy food marketing, strengthening children’s mental health and reducing health costs for families? The adolescent birth rate was concerningly high.  How was the State party addressing teenage pregnancy?

    Iraqi schools were fully closed for 51 weeks during the COVID-19 pandemic.  What catch-up measures had been implemented?  Access to online services was limited in schools in Kurdistan; how was this being addressed?  Mr. Mezmur congratulated the State party on implementing legislation on pre-primary education.  Enrolment in this education was still at around 10 per cent; how was the Government promoting increased access?  What was being done to identify children who were out of school and encourage their return? How could children without documentation access education and health care?

    MARIANA IANACHEVICI, Committee Expert and Taskforce Member, asked about care being provided for children returning from northeast Syria.  What training was provided to professionals who worked with children coming from abusive family environments?  How were the rights of incarcerated children protected?  Did they have access to education and mental health care?  The Expert welcomed efforts to improve the standards of living for children through social safety net programmes.  Were there plans to strengthen the programmes to support vulnerable children?  How was the Government promoting access to safe drinking water for vulnerable children and families, particularly in conflict-affected areas?

    RINCHEN CHOPHEL, Committee Expert and Taskforce Member, said children in Iraq were exposed to extremely high temperatures.  Were there national initiatives to monitor children’s environmental health, and reduce and monitor air and water pollutants?  What measures were in place to increase children’s preparedness for disasters?

    BENOIT VAN KEIRSBILCK, Committee Expert and Taskforce Coordinator, asked whether the State party was considering ratifying the 1951 Refugee Convention or the Convention on the Status of Stateless Persons?  What protections were provided to asylum seekers and migrants in Iraq?  Had the State party conducted analysis into the causes of child labour and developed measures to address the issue?  Were labour inspectors trained to deal with child labour?  Why had the number of inspections decreased recently?  What was being done to reintegrate victims of child labour into society and support their access to rehabilitation?  How were children in street situations identified and supported to return to their families?  Were there referral services for child victims of trafficking?  Were the perpetrators of child trafficking brought to justice?  How did the State party ensure that child victims of trafficking were not treated as perpetrators?

    Had the State party assessed legislation on child justice and considered establishing juvenile courts?  The minimum age of criminal responsibility was 11; were there plans to raise this to 14?  What happened to children below 11 years of age who committed crimes? The treatment of children in detention was very worrying.  How many children were detained?  What non-custodial measures were in place?  How did the State party assess the age of children in conflict with the law? Were there still children detained with adults?

    There had been improvements regarding children involved in armed conflict.  How was this issue monitored and how was the recruitment of children criminalised in practice?  Were there military schools in Iraq?  Was the State party considering incorporating the Safe Schools Declaration in national policy?

    Responses by the Delegation

    The delegation said Iraq had taken numerous measures to address child labour, which was prohibited for children under 15 years old, and there were strict measures regulating work for children aged 15 to 18.  Iraq had ratified the International Labour Organization Conventions 138 and 182 on child labour.  The State party was working to raise awareness of the risks of employing children and the punishments imposed.  Social support programmes had been bolstered to reduce the need for children to engage in labour; around 1.5 million households benefitted from these programmes. 

    There was a workplace oversight and monitoring programme that sought to protect children from economic exploitation. Employers could be fined or punished for using child labour.  Children who were authorised to work could only work reduced hours and could not work at night.  These children had the right to equal pay and a safe and healthy workplace.  An exceptional surprise inspection campaign had been carried out since 2019, which had identified more than 600 cases of child labour in total, with several employers of children transferred to judicial authorities.

    The budget for the Ministry of Health had increased to over nine trillion dinars in 2024.  This budget was devoted to health care programmes for women and children, constructing and rehabilitating medical centres, and other areas.  The Government was implementing the national vaccination programme to provide vaccinations to vulnerable populations, including asylum seekers and refugees. The Government provided equal access to health services regardless of religion, ethnicity or other characteristics. In 2023 and 2024, more than 43,000 children in refugee camps received vaccinations against polio.  Iraq had become one of the first countries in the Middle East to become free from polio.  More than 88 per cent of children in kindergarten and 91 per cent of primary school students had been vaccinated.

    Awareness raising campaigns on the importance of healthy diets were carried out in schools.  The nutritional quality of school meals was examined and the safety of schools’ drinking water was tested.  Schools were supported to organise sports activities.  The State party also supported non-governmental organizations working to improve children’s nutrition.  The Government had adopted a law prohibiting the sale of cigarettes to children under the age of 15 and a law prohibited the sale and production of e-cigarettes.  A smoking ban had been imposed in schools.

    The State party promoted exclusive breastfeeding in the first six months of life, and there had been a 10 per cent rise in breastfeeding recently.  Iron supplements were provided to pregnant women and vitamin A supplements were provided to children, blood test campaigns were carried out to detect anaemia, and awareness raising campaigns on the dangers of anaemia were carried out. Since 2021, there had been a 46 per cent decrease in maternal mortality, influenced by a 96 per cent rise in the number of specialised doctors covering deliveries.

    Iraq’s nationally determined contribution, approved in 2021, spelled out the State party’s goal of developing renewable energy sources and transitioning to a low-carbon economy.  The State party was pursuing climate change mitigation and adaptation measures in its policies and programmes, including the national development strategy.  Projects and programmes to cut pollution and minimise the effects of greenhouse gases were being developed.  A technological action plan on the energy transition had also been drafted.

    All persons from minority groups enjoyed the rights and privileges guaranteed to all Iraqi citizens. Electoral laws ensured quotas for minority representatives, and there were also quotas for minorities in the civil service.  There were nine seats in Parliament reserved for minority representatives, and there were also minority representatives in the Council of Ministers.  The State party had encouraged Yezidi and Christian minorities to return to their places of residence.  There were 79 non-governmental organizations working tirelessly to protect minority children’s rights.  A programme to restore minority religious buildings had been implemented following the destructive campaign of Daesh, which had led to the reconstruction of four Christian churches and more than 20 mosques.

    The Kurdistan Government had provided support to 185,000 children abducted by Daesh.  Around 1,000 survivors were sent to Germany to receive additional healthcare.  Many cases had been submitted related to the crimes of Daesh.

    Follow-Up Questions by Committee Experts

    BENOIT VAN KEIRSBILCK, Committee Expert and Taskforce Coordinator, asked when the child protection law would be adopted.  Some 28 per cent of girls were married before the age of 18 and seven per cent before the age of 15.  What were the rights of former wives after divorce?  Was the State working to prevent the practice of forcing girls to marry their cousins?  Corporal punishment by parents and teachers appeared to be permitted by the Criminal Code. Was there an awareness raising campaign on the prohibition of corporal punishment?  There were reports of female genital mutilation still being practiced in some regions; how was this being addressed?  How was the State party pursuing demining activities to make land safe for children?

    BENYAM DAWIT MEZMUR, Committee Expert and Taskforce Member, asked about the implementation of legislation on illegal drugs, which had increased in prevalence in Iraq in recent years. How was Iraq addressing the impact of drugs on children?

    MARIANA IANACHEVICI, Committee Expert and Taskforce Member, asked about amendments in 2025 to the civil status law and the expanded role of religious courts in family matters.  How did the decisions of these courts affect children?

    Other Committee Experts asked about why Iraq was not present at the Bogota interministerial conference on violence against children; how it was expanding coverage of the hotline for reporting violence; whether marriages between people of different religions were permitted; plans to revise legislation allowing husbands to beat their wives; whether there was an authority monitoring standards in residential homes; whether children incarcerated with their parents benefitted from support programmes; whether there was a disease surveillance system in place; how the State party was combatting tuberculosis in children, obstetric fistula and child obesity; measures to prevent child road deaths; and screening programmes to assess disability in children.

    Several Experts expressed concern regarding the amendment in 2025 to the civil status law allowing for children to marry from age nine.  They asked how the State party determined the best interests of the child in decisions authorising marriages under age 18?  What measures were implemented to protect vulnerable girls from forced marriages? Had appeals been made to immediately nullify the amendment?

    Responses by the Delegation

    The delegation said the amendment to the law on personal status had been assessed by Parliament and workshops with civil society.  Marriage from nine years was not permitted by the civil status law, which permitted marriages from 18 years of age, or from 15 years when the children involved petitioned courts directly, with their parents’ permission.  Such children were required to undergo medical examinations to ensure that they were mentally and physically capable of marriage.  The new civil status law ensured that only judges had the ability to sign minors’ marriage contracts.  There were no religious courts or judges in Iraq. Persons who facilitated marriages outside the legal framework were liable for punishment.

    The Supreme Court had issued a clear verdict on article 41 of the Criminal Code, finding that it did not allow violence against children in any form.  Courts were bound to follow this interpretation of the law.  When parents exercised corporal punishment, they faced legal punishment.  Civil police monitored cases of corporal punishment and had responded to around 100 cases.

    State legislation regulated disciplinary measures imposed against school principals and teachers who harmed children’s health.  Perpetrators of such acts could be brought before the courts.  The Ministry of Education combatted all forms of violence in schools.  School management boards included experts on preventing violence.

    The Ministry of Interior had departments fighting trafficking in persons and supporting victims, and departments supporting poor families and children to keep them out of street situations. The law on trafficking in persons specified that minors involved in trafficking were victims.  The national strategy for 2023 to 2026 on child protection included measures to combat trafficking.  In 2024, the State party had arrested more than 1,000 persons involved in trafficking in persons.  The department combatting trafficking had been linked with the secret services department to strengthen transnational activities to combat the crime.

    The Ministry of Interior had implemented measures to prevent the spread of illegal drugs under the national strategy to combat drugs for 2025 to 2030.  Educational programmes were carried out to strengthen public servants’ capacity to treat drug addicts.  Some 16 rehabilitation centres had been established for drug addicts, who were treated as victims rather than criminals and supported to reintegrate into society. The State party had cooperated with other States to dismantle international drug trafficking networks. The volume of confiscated drugs had increased recently.

    Parliamentary committees were examining the draft law on children’s protection, which promoted children’s rights and prohibited all forms of abuse against children.  The law would ensure that children enjoyed protection from discrimination regardless of their ethnicity, religion or other characteristics, and the right to live in a safe family environment.

    Concluding Remarks 

    BENOIT VAN KEIRSBILCK, Committee Expert and Taskforce Coordinator, said that the size and high level of the delegation showed that Iraq highly valued children’s rights.  The dialogue had revealed areas in which Iraq had made important progress since 2015, as well as issues that needed to be addressed. Based on it, the Committee would develop recommendations to help the State party better implement the Convention. The future law on child protection seemed extremely promising; the Committee hoped that it would be adopted soon and fully implemented.  It was important that children knew their rights and were able to implement them. Iraq still faced many challenges. The Committee looked forward to the future progress that it hoped the State would make.

    KHALID SALAM SAEED, Minster of Justice of Iraq and head of the delegation, said Iraq had presented its progress in implementing the Convention and the recommendations of the Committee.  The State party looked forward to receiving the Committee’s recommendations, which would help to consolidate children’s rights in the country.  The concluding observations would be carefully studied by authorities drafting policies and plans on the rights of the child.  Iraq was determined to promote human rights based on the principles of equality and social justice.  The Government cooperated with various stakeholders to implement the Committee’s recommendations and its international obligations.  Iraq thanked all persons who had facilitated the dialogue.

    ABDULKARIM HASHEM MUSTAFA, Permanent Representative of Iraq to the United Nations Office at Geneva, said the dialogue reflected the Iraqi Government’s resolve to protect the rights of the child pursuant to the provisions of the Convention.  Iraq thanked the Committee for its moral support, which encouraged it to further improve the situation of its children.

    SOPIO KILADZE, Committee Chair, said that the Committee and the State party shared a common goal of improving the situation of children in Iraq.  The Committee congratulated the State party on the progress it had made and looked forward to hearing about the future progress that the State would make for children in the next dialogue.

    ___________

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

     

     

     

    CRC25.012E

    MIL OSI United Nations News

  • MIL-OSI Security: (Corrected Release) The Diamond Desk Corp. and PetersenLowe, LLC operators sentenced in multi-million dollar diamond investment fraud scheme

    Source: Office of United States Attorneys

    Note: This press release was corrected to reflect the proper announcing officials.  

    MIAMI – On May 15, 2025, Adam Jonathan Lowe, 43, of West Pittston, Pennsylvania, was sentenced to over 6 years in federal prison by the Honorable David Leibowitz, stemming from his conviction for conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, wire fraud in violation of Title 18, United States Code, Section 1343, mail fraud in violation of Title 18, United States Code, Section 1341, and engaging in monetary transactions in criminally derived proceeds, in violation of Title 18, United States Code, Section 1957.  Upon release from custody, Lowe must serve three years of supervised release and pay restitution to the victims of his offense.

    Previously, on May 13, 2025, co-defendant Murray Todd Petersen, 73, of Fair Oaks, California, was sentenced to 9 years in federal prison by the Honorable James I. Cohn stemming from his conviction after a seven-day jury trial in Fort Lauderdale, Florida for conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349 and wire fraud in violation of Title 18, United States Code, Section 1343.  Upon release from custody, Petersen must serve three years of supervised release and pay restitution to the victims of his offense.

    On October 18, 2024, co-defendant Scott Schafer, 62, of Pembroke Pines, Florida, was sentenced to five years probation stemming from his stemming from his conviction for conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349.

             As outlined in court documents and trial testimony, Adam Jonathan Lowe, as the president of The Diamond Desk and as the manager of PetersenLowe, LLC., was the supplier of fancy-colored diamonds sourced worldwide.  Murray Todd Petersen worked as a salesman for PetersenLowe, LLC., who induced investors to purchase Lowe’s fancy-colored diamonds using materially false and fraudulent representations concerning the safety and security of the investments, the value of the investments, the expected profits and rates of return, and the use of investors’ funds. After selling his victims expensive fancy-colored diamonds supplied with fraudulent overvalued appraisals from co-defendant Scott Schafer, Petersen instructed his clients to hold onto their investments often for one to two years prior to looking to liquidate. When trying to cover his investors cash out demands at the overpriced appraisal prices, Petersen and Lowe used another false representation of a China investment program, where they would purportedly invest the victims’ money into the Chinese diamond market with a purported guaranteed five to eight percent monthly dividend return on investment. Unbeknownst to their victims, this new investment program was really a Ponzi scheme in disguise designed to pay off his first round of investor clients. When customers began to complain about missing promised returns and highly inaccurate overvalued appraisals, the scheme pivoted again to a theft model, where investors prepaid for diamonds that were never delivered by either Lowe or Petersen. Petersen took approximately $850,000 in sales commissions from his victims, which he used to pay off his high IRS tax liens and cover his business operating expenses.  In total, the scheme netted approximately $13 million and defrauded in excess of 100 victims.

             U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement.   

             FBI Miami investigated the case. Assistant U.S. Attorneys Marc Anton and Latoya Brown prosecuted the case.  Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.

             You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

             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 23-cr-60225.

    ###

    MIL Security OSI

  • MIL-OSI Video: UK E-petition debate relating to the Income Tax Personal Allowance – Monday 12 May 2025

    Source: United Kingdom UK Parliament (video statements)

    The Petitions Committee has scheduled a debate relating to the Income Tax Personal Allowance.

    Lewis Atkinson MP has been asked by the Committee to open the debate. The Government will send a Minister to respond.

    Read the petition:
    https://petition.parliament.uk/petitions/702844

    Find petitions you agree with, and sign them: https://petition.parliament.uk/

    What are petition debates?

    Petition debates are ‘general’ debates which allow MPs from all parties to discuss the important issues raised by one or more petitions, and put their concerns to Government Ministers.

    Petition debates don’t end with a vote to implement the request of a petition. This means that MPs will not vote on the issues raised in the petition at the end of the debate.

    The Petitions Committee can only schedule debates on petitions to parliament started on petition.parliament.uk

    Find out more about how petition debates work: https://committees.parliament.uk/committee/326/petitions-committee/content/194347/how-petitions-debates-work/

    Stay up-to-date
    Follow the Committee on Twitter for real-time updates on its work: https://www.twitter.com/hocpetitions

    Thumbnail image ©UK Parliament / Jessica Taylor

    https://www.youtube.com/watch?v=KEI8WbYRHCw

    MIL OSI Video

  • MIL-OSI Europe: REPORT on the nomination of Ivana Maletić as a Member of the Court of Auditors – A10-0088/2025

    Source: European Parliament

    ANNEX 1: CURRICULUM VITÆ OF IVANA MALETIĆ

    Ivana MALETIĆ

    Education:

    PhD candidate, Faculty of Economics, University of Rijeka (Croatia)

    2012

    Master of Science in Accounting, Auditing and Finance, Faculty of Business and Economics, University of Zagreb (Croatia)

    2004 2006

    Certified Public Sector Accountant and Auditor (two-year course), CIPFA – Chartered Institute of Public Finance and Accountancy (United Kingdom)

    1992 1997

    Master of Economics and Business, Faculty of Business and Economics, University of Zagreb (Croatia)

     

    Professional experience:

    July 2019 present

    Member, European Court of Auditors (Chamber IV), Luxembourg (Luxembourg)

    July 2013 June 2019

    Member, European Parliament (ECON, REGI and BUDG Committee), Brussels (Belgium)

    March 2012 July 2013

    President, TIM4PIN Center for Public and Non-Profit Sector Development, Zagreb (Croatia)

    February 2008 December 2011

    State Secretary, National Authorising Officer, Negotiator for Chapter 22 and Deputy Chief Negotiator, Ministry of Finance (Croatia)

    May 2005 February 2008

    Assistant Minister for Budget Execution and Deputy National Authorising Officer, Ministry of Finance (Croatia)

    September 2004 May 2005

    Head of National Fund Department, Ministry of Finance (Croatia)

    December 1998 September 2004

    Advisor, Department for Government Accounting and Financial Reporting, Ministry of Finance (Croatia)

    December 1997 December 1998

    Trainee, Department for Government Accounting and Financial Reporting, Ministry of Finance (Croatia)

    Work at the European Court of Auditors:

    June 2024 present

    Member to the Audit Quality Control Committee (AQCC)

    October 2019 February 2022

    President and Member of the Internal Audit Committee (IAC)

    December 2019 October 2021

    Member of the Digital Steering Committee (DSC)

    July 2019 March 2020

    Member of the Strategic Foresight and Advisory Committee

    Published reports:

    Review 05/2020: How the EU took account of lessons learned from the 2008-2012 financial and sovereign debt crises

    Opinion No 6/20 concerning the proposal for a regulation of the European Parliament and of the Council establishing a Recovery and Resilience Facility (COM(2020) 408)

    Special report 07/2022: SME internationalisation instruments: A large number of support actions but not fully coherent or coordinated

    Special report 15/2022: Measures to widen participation in Horizon 2020 were well designed but sustainable change will mostly depend on efforts by national authorities

    Special report 21/2022: The Commission’s assessment of national recovery and resilience plans: overall appropriate but implementation risks remain

    Special report 23/2022: Synergies between Horizon 2020 and European Structural and Investment Funds: Not yet used to full potential

    Special report 24/2022: e-Government actions targeting businesses Commission’s actions implemented, but availability of e-services still varies across the EU

    Opinion 04/2022 concerning the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2021/241as regards REPowerEU chapters in recovery and resilience plans and amending Regulation (EU) 2021/1060, Regulation (EU) 2021/2115, Directive 2003/87/EC and Decision (EU) 2015/1814 [2022/0164 (COD)]

    Special report 26/2023: The Recovery and Resilience Facility’s performance monitoring framework: Measuring implementation progress but not sufficient to capture performance

    Special report 13/2024: Absorption of funds from the Recovery and Resilience Facility: Progressing with delays and risks remain regarding the completion of measures and therefore the achievement of RRF objectives

    Ongoing audits:

    Labour market reforms in the national recovery and resilience plans. Some results, but not sufficient to address structural challenges.

    Do the design and implementation of the business environment reforms in the national recovery and resilience plans address the main businesses’ needs?

    RRF Review: Opportunities, challenges and risks

    Have the Commission and member states put in place adequate arrangements to ensure an appropriate level of traceability and transparency of RRF funding?

    Publications:

     Books:

    1) Maletić, I., Galinec, D., Japunčić, T., Župan, S., Five years of the Republic of Croatia in the European semester, Office of MEP Ivana Maletić, Zagreb, 2019

    2) Maletić, I., Jakir Bajo, I., Stepić, D., A Guide to Good Governance in the Public and Non-Profit Sector, TIM4PIN, Zagreb, 2018

    3) Maletić, I., Kosor, K., Ivanković Knežević, K., et. al., My EU Project: A Manual for the Preparation and Implementation of EU Projects, TIM4PIN, Zagreb, 2018

    4) Maletić, I., Kosor, K., Copić, M., et al., EU Projects from Idea to Realization, TIM4PIN, Zagreb, 2016

    5) Maletić, I., Bešlić, B., Copić, M., Kosor, K,., Kulakowski, N., Zrinušić, N., EU Project Management, TIM4PIN, Zagreb, 2014

    6) Maletić, I., et. al., Fiscal Responsibility – Completing Questionnaires, Compiling Plans and Reports, TIM4PIN, Zagreb, 2013

    7) Maletić, I., Stepić, D., Jakir Bajo, I., Knežević, M., Kozina, D., Fiscal Responsibility and Financial Management, TIM4PIN, Zagreb, 2012

    8) Maletić, I., Jakir-Bajo, I., Zorić, A., Fiscal Responsibility, Croatian Association of Accountants and Financial Experts, Zagreb, 2011

    9) Maletić, I., Vašiček, D., Jakir-Bajo, I., et al., The Accounting of Budget and Budget Users, Croatian Association of Accountants and Financial Experts, Zagreb, 2008

    10) Maletić, I., Jakir-Bajo, I., Budgetary Planning and Accounting, Centre for Accounting and Finance, Zagreb, 2003

    11) Maletić, I., Lončar-Galek, D., Mencer, J., et. al., Application of the Budget Accounting Plan 2003/2004, Croatian Association of Accountants and Financial Experts, Zagreb, 2003

    12) Maletić, I., Vašiček, V., Vašiček, D., Introduction to Budgetary Accounting 2002, Croatian Association of Accountants and Financial Experts, Zagreb, 2002

    13) Maletić, I., Jakir-Bajo, I., Budgetary Accounting, Informator, Zagreb, 2001

    14) Maletić, I., Vašiček, D., Jakir-Bajo, I., et al., Budgetary system: Accounting, Finance, Audit, Taxes, Croatian Association of Accountants and Financial Experts, Zagreb, 2000

     The author of over 250 articles published in domestic journals.

     A lecturer at numerous conferences, round tables and seminars in the Member States.

     

    ANNEX 2: ANSWERS BY IVANA MALETIĆ TO THE QUESTIONNAIRE

    Questionnaire for the renewal of Members of the Court of Auditors

    Performance of duties: lessons learnt and future commitments

    1. What are your main achievements as a member of the ECA? What were the biggest setbacks?

    I consider all the audits and opinions I have worked on to be an important contribution to the work of the EU and the effectiveness, efficiency, and impact of EU actions. In particular, I would like to highlight my work on the Recovery and Resilience Facility (RRF), where I was reporting Member of both opinions on the draft regulations as well as for several special reports, such as the reports on the Commission’s assessment of the national recovery and resilience plans, the performance monitoring framework, the absorption of RRF funds and the RRF labour market reforms. In all these opinions and reports, I emphasized the importance of good management of public funds, regardless of whether the financing is based on the reimbursement of costs or the fulfilment of set conditions. The rules of sound financial management, which imply legality and regularity of the underlying transactions as well as effectiveness and efficiency, must be at the core of every programme. In addition, transparency of public spending and accountability are the basis for building citizens’ trust in institutions not only at the EU level, but also in each member state. I am proud to have emphasized these values in the audits of the RRF and, together with my colleagues, I have never given up on insisting that the fundamental principles set out in the Financial Regulation should be respected.

    One of the biggest obstacles regarding our work on the RRF was to ensure not only a coherent audit approach across audit teams and audit chambers within ECA but also consistency of our messages. In addition, the novelty of the RRF as such was a challenge, as it required everyone to get acquainted with a new and in parts still changing legal framework in a relatively short period of time. For some of our audits this resulted in the audit reports being published later than we initially planned. In addition, the limited access to information, specifically the limited access to FENIX, was an obstacle for our early RRF audits but we managed to overcome these limitations, at least to a certain degree.

    In addition to my audit work I was also involved in different committees like the Internal Audit Committee or the Audit Quality Control Committee. One of my main contributions as chair of the Internal Audit Committee was for example the revision of the rules of procedure of the committee and the revision of the charter of the internal audit service. My role as Member of the Audit Quality Control Committee allows me to actively contribute to the quality of our audit reports as well as the methodology applied in our work.

    2. What are the main lessons learnt in your field of competences / results achieved in your duties and audit tasks?

    As stated above, the main focus of my audit work in ECA was related to the RRF. The RRF considerably differs in design and legal basis from other EU programmes and thus required us to reflect not only on our audit approach but also the way we work.

    Auditing a “performance-based instrument” to some extent blurs the line between performance audits and audits on the legality and regularity of EU funding. One of my achievements was to significantly contribute to and thereby shape our work on this new instrument and ensure coherence across different tasks. In addition, from the very beginning, I had a very strategic view on the RRF audit work as it was and still is essential, that our audits, taken together, allow us to draw lessons not only for the RRF but also for future similar instruments. The performance audits that I proposed for the RRF after working on the opinion on the regulation enabled us to have a comprehensive overview of the design and functioning of this new instrument a year before the end of the program.

    3. What added value could you bring to the ECA on your second term and/or particularly in the area you would be responsible for? Would you like to change your area of responsibility? What motivates you?

    In my second term I would firstly like to finish my work on the RRF, in particular finalizing the ongoing and planned RRF audits, such as transparency and traceability of RRF funding, public administration, education as well as an audit related to the overall results and impact of the RRF. These audits would build on my experience in this field and would further contribute to improving the design of future similar programmes, and the link with the European Semester including the country specific recommendations.

    In addition, I would like to enlarge my portfolio and get more involved in other policy areas and programs within Chamber IV, such as research and innovation, competitiveness or economic governance, strategic autonomy and economic security. This would allow me to build on the experience gained through my audits on “Synergies between Horizon 2020 and European Structural and Investment Funds” and “Measures to widen participation in Horizon 2020”.

    In more general terms, I believe that, in line with ECA’s rotation policy for auditors and managers, rotation should also be considered for Members, in particular in the case of two terms of office. Consequently, I would not exclude moving to another Chamber.

    4. How do you make sure to reach the planned audit objectives of an audit task? Have you ever been in the situation where you could not realize the audit task and for which reasons? How do you operate in such controversial situations?

    Due to the good cooperation between the audit teams and my office, I was able to carry out all audits successfully and in line with the defined scope. Therefore, I have never been in a situation where we could not finalize an audit or not achieve the audit objectives. The only issue I did encounter was the delay of publication for some audits, due to factors outside our control like temporarily limited access to audit evidence, the complexity of the evidence provided or unavailability of key staff in member states or the Commission.

    In case I ever encountered significant obstacles that would put the finalization of an audit at risk, I would try to overcome these obstacles through open and constructive communication that would allow us to find a solution together. I strongly believe that all of us, as auditors and auditees, have the same goal, which is to deliver work of high quality, and ultimately to ensure legality, effectiveness and efficiency of publicly funded programmes, including those funded by the EU. Therefore constructive communication, trying to understand different perspectives and patience are key elements for successfully resolving any controversial situation.

    5. If you were reconfirmed for a second mandate and hypothetically, if you were elected Dean of a Chamber in the ECA, how would you steer the work to define its priorities? Could you give us two or three examples of areas to focus on in the future?

    The Chamber is managed by all of us together – the Members of the Chamber and the director. To that extent, the role of the Dean is, with the help of the other Members of the Chamber, to take an active role in defining the priorities of our work and therefore the selection of audits.

    In case I was elected as Dean of a Chamber, I would pay particular attention to an effective communication within the Chamber and Court as well as with our main stakeholders, like you, when defining audit priorities. In my view this would allow us to have a comprehensive view of the most relevant areas we should focus on in our work and to ensure that the timing or our audits maximises their added value. Furthermore, a comprehensive audit planning needs to be strategic, going beyond a short-term planning, but should also allow for flexibility, where needed.

    Regarding areas to focus on (in Chamber IV) in future I would consider competitiveness, economic governance and, as a transversal topic, simplification as extremely relevant in the light of the challenges the EU is currently facing.

    For competitiveness, our audits could focus on the areas of research and development and the functioning of the single market, with the aim of strengthening capacity, removing barriers and achieving synergies. This includes reflecting on possibilities for faster and simpler methods of financing research and scientific projects.

    In the field of economic governance, it would be important to include audits specifically related to times of crisis, such as: transfer prices or whether the economic governance model is fit for purpose in this regard.

    Furthermore, ECA’s work could potentially add considerable value in the simplification process, for example by assessing the different simplification procedures and how they could be improved.

    6. If you had to manage the selection of audit tasks in view of the preparation of the ECA annual working programme, on which basis would you make your choice among the list of priorities received from the Parliament and/or the CONT committee?

    What would you do if a political priority does not correspond to the ECA risk assessment of the Union’s activities?

    The planning process within the ECA is very detailed and involves all auditors and managers, as well as all Members and their offices. When planning, we consider several different factors, e.g. policy risks, materiality, timing, audit coverage, the likely impact of an audit and stakeholder interest. These are also the main elements we consider when making our choice among the list of priorities received form the Parliament or CONT committee.

    The selection of audit topics is primarily based on their potential added value, and therefore topics of important political and strategic interest are always taken into account, even though they may not be highest priority in terms of risk. Furthermore, I would like to note that “risk” has many dimensions and should not be reduced to materiality.

    As you are well aware, the number of audit proposals is significantly higher than the number of audits we can carry out each year. Some proposals, while politically very relevant, may not come at an ideal time, e.g. as the implementation of the instrument is at an early stage. Others may not be entirely feasible due to the political or security situation in the audit area or even our audit mandate.

    Maintaining our independence in defining our work programme is essential, and the limited resources inevitably mean that not all audit proposal can be considered or not be considered at that moment in time. However, input from our main stakeholders is extremely valuable to us and will always be considered. It is also important that we communicate very clearly to the stakeholders, especially the European Parliament, why some of the proposals were not included in the programme and whether or not they may be considered in the future.

    Management of portfolio, working methods and deliverables

    7. Producing high quality, robust and timely reports is key:

     How would you ensure that the data used in an audit are reliable and that the findings are not outdated?

     How would you improve the quality and pertinence of the recommendations?

    To ensure that data used in audit are reliable it is important to know the sources and understand exactly how the data is collected, compiled and verified. While performing our audits, we always assess the accuracy and completeness of data and cross-reference it where needed, considering the source and nature of the data and the control systems in place.

    I believe that the recommendations in our audit reports are in general of a high quality and pertinence. Any good recommendation is rooted in solid audit work while considering aspects of feasibility as well “value for money”. These aspects have and always will be the guiding principles for the recommendations included in my audit reports.

    In general, a thorough planning, as well as timely and well targeted audits are the best way to ensure that our observations and recommendations come at the right time and have the maximum potential impact. In my view, more focussed and thereby quicker audits should therefore be considered wherever feasible.

    8. The aim of the ECA’s reform is to establish a stronger accountability relationship between the audit team and the rapporteur member:

     Given your experience, do you think that the role of a member is to be more involved in the audit work?

     Would you change the way you work with an audit team? If yes, how?

    I believe that the Member is ultimately responsible for the audit, its quality, relevance and objectivity. It is not possible to present the results of the audit work and advocate for the recommendations without a thorough understanding of the audited area and the observations. It is therefore essential that the Member works closely with the audit team and follows the audit work. Personally, I enjoy working with the teams, we always have constructive discussions from the selection and planning of the task to defining the audit scope and approach and finally the drafting of key messages and recommendations. I strongly believe that working together brings the best results and allows us to learn from each other.

    As I have always worked closely with the audit teams, I do not intend to change this approach in the future.

    9. What would be your suggestions to further improve, modernise the ECA functioning, programming and work (audit cycle)? After your first mandate, could you give us a positive aspect of the ECA working and a negative one?

    In an ever faster changing environment, the duration of our audits is something we may have to reflect on. As mentioned above, shorter, more focussed audits should therefore be considered, if the audit topic allows for it.

    Moreover, we should continue to encourage cooperation between audit chambers in particular on cross cutting issues such as the RRF, energy independence and security, or the now increasingly important priority defence. This cooperation across Chambers should include a flexible allocation of resources.

    For me the most positive aspect of the ECA is its staff – they are highly qualified and motivated and work hard to deliver quality audit work and meaningful reports. In addition, the ECA is a very supportive environment that encourages continuous learning, improvement and progress. The fact that audits are carried out in teams, facilitates learning from each other and a culture of togetherness and collegiality.

    10. Under the Treaty, the Court is required to assist Parliament in exercising its powers of control over the implementation of the budget in order to enhance both the public oversight of the general spending and its value for money:

     With the experience of your first term, how could the cooperation between the Court of Auditors and the European Parliament (Committee on Budgetary Control) on auditing the EU budget be further improved?

    In my experience, the cooperation between the ECA and the European Parliament is already very good. We have established a continuous dialogue with the Parliament, including the Parliament contributing to the selection of audit tasks and ECA Members regularly being invited to present audit reports. This cooperation is key in ensuring that we maximize the added value of our audits, in particular in the context of the discharge procedure.

    While the cooperation is already very positive, we could of course always intensify or explore new ways of cooperation like joint workshops or regular briefings for the MEPs in key areas of interest. In a way, communication is essential and should always go two-way: ECA should know of the challenges the Parliament is facing and the best way ECA can support it in its work whereas the Parliament should be aware of the possibilities as well as boundaries ECA has in its work.

     Similarly, how to strengthen relations between ECA and national audit institutions?

    Cooperation with the EU SAIs takes place within the framework of the Contact Committee, with day-to-day contacts are maintained through liaison officers appointed by each institution.

    National SAIs are informed about our audit visits and regularly participate in these visits as observer. In addition, the ECA organises five-month internships for auditors from the SAIs of Candidate Countries.

    While the cooperation with SAIs is already very positive, coordinated audit work in key areas of common interest could be encouraged to further strengthen the cooperation and increase the potential impact of our work. Exchange of staff in form of temporary secondment should also be continued to facilitate a continuous exchange of views, and future cooperation.

    11. How will you support the Parliament in the achievement of the shortening of the discharge procedure? What actions can be undertaken from your side?

     Cooperation and commitment of all involved institutions are needed to accelerate the processes and avoid delays. On the ECA’s side we make an effort to give priority to the Statement of Assurance and ensure timely adoption of the documents through flexibility in terms of scheduling additional Court meetings when needed. As a result, we managed to publish our last two annual report more than one month before the legal deadline.

    This is complemented by a similar effort for our performance audits. I always planned my performance audits in a way that we can, in terms of content as well as time, support the discharge procedure. It is however important to note that the timing of our reports depends on several factors, some of which are outside our control.

    Independence and integrity

    12. What guarantees of independence are you able to give the European Parliament, and how would you make sure that any past, current or future activities you carry out could not cast doubt on the performance of your duties at the ECA?

    I think that the best guarantee I can give you is my work at the ECA in which I always advocated for the respect of the basic principles of legality, regularity and sound financial management, no matter the circumstances. I believe that as independent auditors, we must always fight for the transparent use of public funds and warn of any shortcomings that are an obstacle to respecting the basic principles of sound financial management.

    In addition, I will continue to fully adhere to the Code of Conduct for ECA Members. I have no business interests or external activities that could raise any doubt concerning my independence and I would never even consider an activity that may compromise the performance of my duties as ECA Member.

    13. How would you deal with a major irregularity or even fraud in EU funds and/or corruption case involving persons in your Member State of origin? Were you in this situation during your current mandate?

    I can repeat my reply on the same question for nomination for the first ECA mandate, since I was and will remain committed to that: I advocate a zero-tolerance towards fraud and corruption because they are extremely dangerous for any society – they destroy competition and opportunities for growth and development. It is precisely by efficient identification and elimination of corruption that we can provide the best possible assistance to our member states. Rules must be abided by and legality and regularity in using public funds is the foundation from which we should never allow any deviation.

    I did not encounter any cases of fraud, irregularity of corruption during my current mandate.

    14. The existence of conflict of interests can trigger a reputation risk for the ECA. How would you manage any conflict of interest?

    I absolutely agree that a conflict of interest poses reputational risks for the ECA. Avoiding these conflicts is at the core of my work and in line with our Code of Conduct, I avoid any situation that is liable to give rise to a conflict of interest, or that could objectively be perceived as such.

    Should such a situation arise, I would communicate the potential conflict of interest in line with the ECA’s procedures and would not accept any tasks for which a personal interest could influence the independent performance of my duties. I have so far not been in any such situation.

    15. Are you involved in any legal proceedings? if so, what kind?

    No, I am not involved in any legal proceedings.

    16. What specific commitments are you prepared to make in terms of enhanced transparency, increased cooperation and effective follow-up to Parliament’s positions and requests for audits?

      For me, transparency in the performance of public affairs and the use of public money is a fundamental principle and one of my core values, and I fully support efforts that contribute to greater transparency. Your requirements are crucial in this regard, and I have been and always will be ready to listen to you and respond to any requests you may have regarding our audit work. We have a common goal, which is to deliver results and value for money in the implementation of EU policies and programmes, and it is important that we share our knowledge and experience. I look forward to every invitation from the Parliament to present our reports, or to participate in thematic discussions and any other form of cooperation.

    Other questions

    17. Will you withdraw your candidacy to a renewal of mandate if Parliament’s opinion on your appointment as Member of the ECA is unfavourable?

    I consider that the authority of the European Parliament which results from the democratic legitimacy of elected MEPs must be observed in full and their decisions must be applied. In accordance with that, in the event of the Parliament’s negative opinion on my appointment I will withdraw my candidacy.

    18. Being appointed Member of the ECA requires full attention and dedication to the institution itself and to ensure trust for the Union among its citizens:

     What are your views on the best way to assume these professional duties?

    I completely agree with you that being a Member of ECA requires full attention and dedication. For me, being an ECA Member means to be devoted and work hard. We lead by example and if we are not motivated and committed, we cannot expect that from others. In addition, we owe it to the EU citizens to perform to the best of our abilities and add value not only for the EU institutions but to them. And this is what I tried to do from the very first day and will continue to do so in future.

     What are your current personal arrangements in terms of number of days of presence in Luxembourg? Do you plan to change these arrangements?

    I moved to Luxembourg, together with my family, when I joined ECA. I work and live in Luxembourg and have no intention to change this in my second mandate.

    ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

    INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

    Date adopted

    14.5.2025

     

     

     

    Result of final vote

    +:

    –:

    0:

    22

    2

    4

    Members present for the final vote

    Georgios Aftias, Arno Bausemer, Gilles Boyer, José Cepeda, Olivier Chastel, Caterina Chinnici, Tamás Deutsch, Dick Erixon, Daniel Freund, Niclas Herbst, Virginie Joron, Ondřej Knotek, Kinga Kollár, Giuseppe Lupo, Marit Maij, Jacek Protas, Julien Sanchez, Jonas Sjöstedt, Cristian Terheş

    Substitutes present for the final vote

    Maria Grapini, Erik Marquardt, Karlo Ressler, Bert-Jan Ruissen

    Members under Rule 216(7) present for the final vote

    Pablo Arias Echeverría, Francisco Assis, Sunčana Glavak, Csaba Molnár, Michal Wiezik

     

     

    MIL OSI Europe News

  • MIL-OSI Europe: REPORT on the proposal for a regulation of the European Parliament and of the Council on the modification of customs duties applicable to imports of certain goods originating in or exported directly or indirectly from the Russian Federation and the Republic of Belarus – A10-0087/2025

    Source: European Parliament

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the proposal for a regulation of the European Parliament and of the Council on the modification of customs duties applicable to imports of certain goods originating in or exported directly or indirectly from the Russian Federation and the Republic of Belarus

    (COM(2025)0034 – C10‑0006/2025 – 2025/0021(COD))

    (Ordinary legislative procedure: first reading)

    The European Parliament,

     having regard to the Commission proposal to Parliament and the Council (COM(2025)0034),

     having regard to Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10‑0006/2025),

     having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

     having regard to the undertaking given by the Council representative by letter of 26 March 2025 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

     having regard to Rule 60 of its Rules of Procedure,

     having regard to the opinion of the Committee on Agriculture and Rural Development,

     having regard to the report of the Committee on International Trade (A10-0087/2025),

    1. Adopts its position at first reading, taking over the Commission proposal;

    2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

    3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

     

     

     

     

     

     

     

     

     

     

     

     

    EXPLANATORY STATEMENT

    Since 2022 when Russia started its full-scale invasion and brutal war of aggression against Ukraine, the EU has implemented multiple rounds of sanctions as well as increased trade tariffs to reduce trade with the aggressor. As a result, the imports into the EU from Russia have decreased by 85 % compared to pre-war levels.

     

    However, there are still Russian products that flow into the EU market, consequently fuelling the Russian war machine. This has to be stopped and brought to complete standstill.

     

    The EU imports of urea and nitrogen-based fertilisers from Russia have significantly increased over the last years. The import levels were already worryingly high in 2023 (3.6 million tonnes, worth EUR 1.28 billion, representing more than 25 % of total EU imports), and have increased significantly in 2024 to 4.4 million tonnes, worth EUR 1.5 billion and with an import share of 30 %. Therefore, imports of the fertilisers covered by this Regulation currently reflect a situation of growing economic dependence on Russia.

     

    The European Parliament have already called for a ban on importing Russian grain, potash and fertilisers in Resolution on continued financial and military support to Ukraine by EU Member States.

     

    The aim of this Regulation is to eliminate dependencies on imports from Russia and to prevent circumvention through Belarus. Such imports, particularly of fertilisers, make the EU vulnerable to potential coercive actions by Russia and thus present a risk to EU food security. This Regulation proposes that the tariff increase on nitrogen-based fertilisers takes place gradually over a transition period of three years. Through increased import duties and prohibitive tariffs, the Russian share of fertiliser import into the EU will gradually be replaced by other sources. Some of the EU Member States have already decoupled from Russian nitrogen-based fertilisers, without seeing shortages of supply or market price increases.

     

    The tariffs will support the growth of the EU’s domestic production of fertiliser, which suffered during the energy crisis and due to the influx of fertilisers from Russia. EU production reached only 14 million tonnes in 2023, down from an average of 18 million tonnes in the previous 5 years. Despite the closure of some production facilities following the increase in energy prices, the European industry has around 20 % spare capacity (ca 3 million tonnes), on top of 9.5 million tonnes of nitrogen fertilisers exported in 2024. If used, it is expected that this spare capacity could almost completely compensate the shortfall of reducing Russian imports into the EU.

     

    The tariff measures will also allow for the further diversification of supply from third countries. There are many suppliers on the world market who can replace Russian exporters, including Egypt, Algeria, Norway, Morocco, Oman and the US. Indeed, there is room to strengthen the transatlantic cooperation. This will help ensure a steady fertiliser supply and foster market competitiveness.

     

    It is vital that we ensure that Russia’s war economy is weakened. At the same time, we must ensure sure that there is a steady stream of quality fertiliser supply for agriculture in the European Union, and, importantly, ensure that fertilisers remain available for EU farmers at an affordable price. Therefore, the proposal includes monitoring provisions and if needed mitigating measures, should a substantial increase in fertiliser prices occur. The gradual phasing-in of applicable tariff measures will allow European farmers to adapt to the new conditions.

     

    In order to prevent circumvention of these measures, the rapporteur welcomes the fact that the tariff measures will also apply to Belarus to prevent potential Russian imports to the EU being circumvented through Belarus. The rapporteur believes that potential increase of imports from other countries, which are not the traditional exporters have to be closely monitored to detect any possible circumvention. 

     

    Besides the import of fertilisers, the Regulation also targets the remaining 15 % of agricultural imports from Russia that had not yet been subject to increased tariffs. With this Regulation, all agricultural imports from Russia will be the subject of EU tariffs. The tariff level would be prohibitive, thus high enough to halt the importation of these goods. Continued imports of the agricultural products concerned could create an additional economic dependence on Russia, which could, if left unchecked, harm the EU’s food security.

     

    The rapporteur welcomes that these combined measures will prevent Russia from benefiting financially from exports to the EU to fund its war of aggression against Ukraine. It is also a matter of EU’s security and strategic autonomy.

    The regulation is not expected to negatively affect global food security because the increase in tariffs applies only to imports into the EU.

     

    The rapporteur welcomes Article 207 TFEU as a legal basis as it is a trade policy measure requiring EP co-decision in line with OLP.

     

    The rapporteur hopes the Regulation will be adopted in its current form and in time for the entry into force by 1 July 2025, in order to ensure rapid implementation.

     

     

    .

    ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she received input from the following entities or persons in the preparation of the draft report, prior to the adoption thereof in committee:

     

    Entity and/or person

    Yara, VP European Government Relations & External Communications, VP Corporate affairs and Industrial Relations

    Zemnieku Saeima (Association Farmers’ Council), Foreign policy specialist

    European Commission, DG Trade Unit E2, DG Trade Unit E3

    Fertilizers Europe, Director General, Trade & Economic Senior Manager

    Association of the Potash and Salt Industry / VKS – Verband der Kali- und Salzindustrie e.V, Managing Director, EU Office Brussels

    Latvijas Lauksaimniecības kooperatīvu asociācija (Latvian Association of Agricultural Cooperatives), Director-General

    Business & Science Poland, Polish Chamber of Chemical Industry, ANWIL

    Permanent Representation of the Republic of Latvia to the EU, Counsellor (SCA Spokesperson, Common Agricultural Policy)

    Council, Permanent Representation of the Republic of Poland to the EU, Chair of Trade Policy Committee-Deputies, Vice-Chair of Trade Policy Committee-Deputies

     

     

    The list above is drawn up under the exclusive responsibility of the rapporteur.

     

    Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

    OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT (7.5.2025)

    for the Committee on International Trade

    on the proposal for a regulation of the European Parliament and of the Council on the modification of customs duties applicable to imports of certain goods originating in or exported directly or indirectly from the Russian Federation and the Republic of Belarus

    (COM(2025)0034 – C10‑0006/2025 – 2025/0021(COD))

    Rapporteur for opinion: Veronika Vrecionová

     

     

    AMENDMENTS

    The Committee on Agriculture and Rural Development submits the following to the Committee on International Trade, as the committee responsible:

    Amendment  1

     

    Proposal for a regulation

    Recital 1

     

    Text proposed by the Commission

    Amendment

    (1) The Union’s imports of urea and nitrogen-based fertilisers from the Russian Federation were significant at 3.6 million tonnes in 2023 and increased considerably in 2024 by comparison with 2023. The level of the Union’s imports from the Russian Federation of the agricultural goods covered by this Regulation (‘the concerned agricultural goods’) is relatively low for most goods, but could increase significantly if the current trading conditions persist.

    (1) The Union’s imports of urea and nitrogen-based fertilisers from the Russian Federation doubled between 2020/2021 and 2022/2023, followed by further growth in 2023 and 2024. In 2023, the Union’s imports of those fertilisers were significant at 3,6 million tonnes, and increased considerably in 2024 by comparison with 2023. The level of the Union’s imports from the Russian Federation of the agricultural goods covered by this Regulation (‘the concerned agricultural goods’) is relatively low for most goods, but could increase significantly if the current trading conditions persist.

    Amendment  2

     

    Proposal for a regulation

    Recital 2

     

    Text proposed by the Commission

    Amendment

    (2) The imports of the fertilisers covered by this Regulation (‘the concerned fertilisers’) currently reflect a situation of economic dependency on the Russian Federation. Moreover, the imports of the concerned agricultural goods could create a similar and additional economic dependency on the Russian Federation, which should in the present circumstances be prevented and reduced in order to protect the Union’s markets and safeguard the Union’s food security.

    (2) The imports of the fertilisers covered by this Regulation (‘the concerned fertilisers’) currently reflect a situation of economic dependency on the Russian Federation, which continues to hinder Union fertiliser production due to an unequal level playing field. The large volumes of fertilisers from the Russian Federation intended for export are gradually distorting supply diversification by eliminating both local and third-country suppliers. Moreover, the imports of the concerned agricultural goods could create a similar and additional economic dependency on the Russian Federation, which should in the present circumstances be prevented and reduced in order to protect the Union’s markets and safeguard the Union’s food security.

    Amendment  3

     

    Proposal for a regulation

    Recital 4 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4a) Reduction of the Union’s dependence on fertilisers from  the Russian Federation, avoiding the creation of new dependencies, ensuring the steady supply of cost-competitive fertilisers at affordable price levels for Union farmers in the short, medium and long term and increasing the Union’s strategic autonomy require the development of a long-term Union fertiliser strategy that should primarily focus on enhancing the competitiveness of the Union’s fertilisers production sector in order to secure a steady supply of fertilisers at affordable price levels. That strategy should focus on supporting innovation, attracting investments and developing new business models to reduce or eliminate potentially harmful import dependencies, as well as a trade diversification strategy promoting stable trade relations and securing alternative supply chains. In parallel, measures should also improve access to organic fertilisers and nutrients from recycled waste streams and increase the circularity of farming practices. It is noteworthy that, although the European Parliament has repeatedly expressed concerns regarding fertilisers, particularly through its resolutions of 24 March  2022 on the need for an urgent EU action plan to ensure food security inside and outside the EU in light of the Russian invasion of Ukraine1a, and of 16 February 2023 on the Commission communication on ensuring availability and affordability of fertilisers 1b, the Commission has not come forward with clear and sufficient measures to support domestic fertiliser production.

     

    _________________

     

    1a OJ C 361, 20.9.2022, p. 2.

     

    1b OJ C 283, 11.8.2023, p. 51.

    Amendment  4

    Proposal for a regulation

    Recital 5 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (5a) The production and cost of mineral fertilisers largely depend on the availability and affordability of natural gas.

    Amendment  5

    Proposal for a regulation

    Recital 5 b (new)

     

    Text proposed by the Commission

    Amendment

     

    (5b) Changes are needed to truly address the Union industry and agriculture structural problems, such as access to energy and raw materials at high prices, the European Green Deal, and excessive regulation.

    Amendment  6

    Proposal for a regulation

    Recital 7

     

    Text proposed by the Commission

    Amendment

    (7) Imports of the concerned agricultural goods and fertilisers that originate in or are exported directly or indirectly from the Russian Federation and the Republic of Belarus should therefore be subject to higher customs duties than imports from other third countries.

    (7) Imports of the concerned agricultural goods and fertilisers that originate in or are exported directly or indirectly from the Russian Federation and the Republic of Belarus should therefore be subject to higher customs duties than imports from other third countries while securing the Union´s market stability, and food security and affordability.

    Amendment  7

    Proposal for a regulation

    Recital 8 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (8a) At the same time, it is important to consider the Union’s high dependence on fertiliser imports from the Russian Federation and the Republic of Belarus. Therefore, this Regulation should be accompanied by the development of a mechanism for balancing fertiliser prices and possible subsidies for farmers if the new tariffs results in an excessive increase in the price of fertilisers and thus in reduced profitability of agricultural production. Revenues generated from higher customs duties should be a part of that mechanism.

    Amendment  8

     

    Proposal for a regulation

    Recital 9

     

    Text proposed by the Commission

    Amendment

    (9) The envisaged increase in customs duties is not expected to negatively affect global food security because the increase in tariffs applies only to imports into the Union and does not affect goods concerned Regulation if they are only transiting through the Union’s territory to third countries of final destination. To the contrary, the envisaged increase in Union import duties may increase the exportation of those goods to third countries and increase the availability of supplies there.

    (9) The envisaged increase in customs duties is not expected to negatively affect global food security because the increase in tariffs applies only to imports into the Union and does not affect goods concerned Regulation if they are only transiting through the Union’s territory to third countries of final destination. However, monitoring transit will be critical to prevent any sort of intentional dumping by the Russian Federation and the Republic of Belarus. To the contrary, the envisaged increase in Union import duties may increase the exportation of those goods to third countries and increase the availability of supplies there.

    Amendment  9

     

    Proposal for a regulation

    Recital 10

     

    Text proposed by the Commission

    Amendment

    (10) At the same time, fertilisers play a significant role for the food security as well as for the financial stability of the farmers in the Union. It is therefore necessary to ensure predictable and sufficient access to fertilisers, at affordable price levels for Union farmers, which should in turn contribute to the stabilisation of agricultural markets. During a transitional period, the proposed measure would stimulate stepping up the Union production and allow for reinforcing alternative sources of supply from other international partners, minimising the risk that fertilisers prices for Union farmers increase substantially. To this end, the Commission should monitor closely the evolution of fertiliser prices on the Union market. Should fertiliser prices substantially increase, the Commission should assess the situation and take all appropriate actions to remedy such surge.

    (10) At the same time, fertilisers play an essential role for food security as well as for the financial stability of the farmers in the Union. It is therefore necessary to ensure predictable and sufficient access to fertilisers, at affordable price levels for Union farmers. During a transitional period, the proposed measure would stimulate stepping up the Union production and allow for reinforcing alternative sources of supply from other international partners, minimising the risk that fertilisers prices for Union farmers increase substantially. The Commission shall address the difficult situation of the fertiliser industry in the Union, which has been under strain over the last four years due to high-energy prices, production costs, and challenges posed by existing regulations. The Commission should therefore implement measures to alleviate the high costs burdening the Union industry, which directly impact the entire supply chain, particularly farmers. The Commission should also monitor closely the evolution of fertiliser prices at the Member State and Union levels. Should fertiliser prices substantially increase, the Commission should take all appropriate actions in a timely manner to remedy such a surge.

    Amendment  10

     

    Proposal for a regulation

    Recital 10 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (10a) Ensuring farmers’ access to affordable and sufficient quantities of fertilisers is essential for safeguarding food security across the Union. Therefore, the Commission should urgently explore and propose appropriate support mechanisms to guarantee the availability of fertilisers at competitive prices for farmers in the Union and introduce targeted measures to support the farmers impacted.

    Amendment  11

     

    Proposal for a regulation

    Recital 10 b (new)

     

    Text proposed by the Commission

    Amendment

     

    (10b) The Commission must ensure that the introduction of additional tariffs on fertiliser imports from the Russian Federation and the Republic of Belarus does not generate above-average purchase prices, thereby undermining farmers’ access to essential inputs. Given the significant volumes currently imported and the limited short-term flexibility to shift suppliers without incurring additional costs, such measures should not result in the reduction of fertilised agricultural areas and sub-optimal application rates. The Commission must ensure that those measures do not lead to lower yields, diminish profitability, and have potentially negative consequences for food security and farmers’ livelihoods. Therefore, a mandatory monthly monitoring, including at Member State level, of the prices of products listed in Annex II should be established to ensure timely responses and safeguard the viability of the Union farming sector. The price indicators should be published monthly in order to increase transparency. Furthermore, the role of the EU Fertilisers Market Observatory should be increased. Moreover, the European Board on Agriculture and Food (EBAF) should hold regular exchanges on the availability and price affordability of fertilisers, ensuring an active dialogue with the actors of the food supply chain, including farmers, and provide high-level advice to the Commission on this strategic matter.

    Amendment  12

     

    Proposal for a regulation

    Recital 10 c (new)

     

    Text proposed by the Commission

    Amendment

     

    (10c) To accelerate the reduction of imports of agricultural goods and fertilisers from the Russian Federation and the Republic of Belarus, the Commission should assess the possibility of developing alternative sources of supply from the Union and other international partners and to authorise alternative measures, such as the use of manure and processed animal manure, including RENURE and digestate, as a sustainable alternative which reduces CO2 emissions by decreasing the need for fertiliser imports, aligns with circular economy principles, and strengthens the Union’s agricultural resilience. The Commission should establish a legal and financial framework that makes manure and processed animal manure, including RENURE and digestate, a viable alternative. That framework should provide regulatory flexibility, beyond the limits currently established by the Council Directive 91/676/EEC1a, while upholding environmental protection and the principles of efficiency and safety, and include financial incentives to keep it affordable for the farmers in the Union.

     

    __________________

     

    1a Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1).

    Amendment  13

     

    Proposal for a regulation

    Recital 11

     

    Text proposed by the Commission

    Amendment

    (11) The envisaged increase in customs duties is consistent with the Union’s external action in other areas, as set out in Article 21(3) of the Treaty on European Union. The state of relations between the Union and the Russian Federation has greatly deteriorated in recent years and particularly since 2022. This is due to the Russian Federation’s blatant disregard for international law and, in particular, its unprovoked and unjustified military aggression and full-scale invasion of Ukraine. Since July 2014, the Union has progressively imposed restrictive measures on trade with the Russian Federation in response to the Russian Federation’s actions vis-à-vis Ukraine.

    (11) The envisaged increase in customs duties is consistent with the Union’s external action in other areas, as set out in Article 21(3) of the Treaty on European Union. The state of relations between the Union and the Russian Federation has greatly deteriorated in recent years and particularly since 2022. This is due to the Russian Federation’s blatant disregard for international law and, in particular, its unprovoked and unjustified military aggression and full-scale invasion of Ukraine. Since July 2014, the Union has progressively imposed restrictive measures on trade with the Russian Federation in response to the Russian Federation’s actions vis-à-vis Ukraine. If the Union fails to impose the envisaged tariffs, it would indirectly contribute to financing the war efforts of the Russian Federation against Ukraine and risk supporting other autocratic regimes, as sanctioned gas from the Russian Federation would be utilised for the production and export of cheap fertilisers to the Union.

    Amendment  14

     

    Proposal for a regulation

    Recital 14 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (14a) Given that fertilisers are widely traded commodities with a substantial risk of circumvention, Member States and their customs authorities should strictly verify and validate the true origin of fertilisers imported into the Union market. That verification process should include thorough scrutiny of shipment documentation and proactive monitoring to prevent any re-export schemes designed to circumvent the tariff-increases. Where circumvention of the measures in force takes place, the imposed tariffs could be extended to goods from other third countries concerned.

    Amendment  15

     

    Proposal for a regulation

    Article 1 – paragraph 2 – point d

     

    Text proposed by the Commission

    Amendment

    (d) The Commission may adopt an implementing act laying down the arrangements for monitoring the import volumes referred to in paragraph 2. That implementing act shall be adopted in accordance with the advisory procedure set out in Article 4 of Regulation (EU) No 182/2011.

    (d) The Commission shall adopt an implementing act laying down the arrangements for monitoring the import volumes referred to in paragraph 2. That implementing act shall be adopted in accordance with the advisory procedure set out in Article 4 of Regulation (EU) No 182/2011.

    Amendment  16

    Proposal for a regulation

    Article 1 – paragraph 2 – point d a (new)

     

    Text proposed by the Commission

    Amendment

     

    (da) The Commission shall, without undue delay, propose a legal and financial framework to scale up the use of manure and processed animal manure, including Renure, as a sustainable alternative to synthetic fertilisers.

    Amendment  17

     

    Proposal for a regulation

    Article 2 – paragraph 1

     

    Text proposed by the Commission

    Amendment

    1. The Commission shall monitor prices applicable in the Union of the goods listed in Annex II during four years from the application of this Regulation.

    1. From the date of application of this Regulation, the Commission shall, on a monthly basis, monitor prices applicable in the Member States and the Union of the goods listed in Annex II. The Commission shall publish in a transparent way the results of such monitoring.

    Amendment  18

     

    Proposal for a regulation

    Article 2 – paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    1a. The Commission and national customs authorities shall closely monitor imports of the goods listed in Article 1.

    Amendment  19

     

    Proposal for a regulation

    Article 2 – paragraph 2

     

    Text proposed by the Commission

    Amendment

    2. Should the price levels of the goods listed in Annex II substantially exceed the levels of 2024 in the period referred to in paragraph 1, the Commission shall assess the situation and take all appropriate actions to remedy such surge. This may include, if appropriate, proposing the temporary suspension of tariffs for concerned goods imported from origins other than the Russian Federation and the Republic of Belarus.

    2. Should the price levels of the goods listed in Annex II substantially exceed the levels of 2024 in the period referred to in paragraph 1, the Commission shall take all appropriate actions within 14 days to remedy such surge. This may include, if appropriate, the following actions:

     

    (a) proposing the temporary suspension of tariffs for concerned goods imported from origins other than the Russian Federation and the Republic of Belarus;

     

    (b) making financial support available to farmers if a substantial increase in fertiliser prices noticeably reduces the profitability of agricultural production.

    Amendment  20

    Proposal for a regulation

    Article 2 – paragraph 2 a (new)

     

    Text proposed by the Commission

    Amendment

     

    2a.  If appropriate, the Commission shall propose the temporary suspension of tariffs for goods concerned listed in Annex II and imported from origins other than the Russian Federation and the Republic of Belarus.

    Amendment  21

     

    Proposal for a regulation

    Article 2 – paragraph 2 b (new)

     

    Text proposed by the Commission

    Amendment

     

    2b. If it is determined that circumvention practices of the import of products listed in Annexes I and II originating in the Russian Federation or the Republic of Belarus through a third country to the Union have occurred, the Commission shall initiate an anti-circumvention investigation. In order to prevent circumvention practices, the Commission shall examine the possibility of using a licensing system for imports from the Russian Federation and the Republic of Belarus.

    Amendment  22

     

    Proposal for a regulation

    Article 2 – paragraph 2 c (new)

     

    Text proposed by the Commission

    Amendment

     

    2c. The Commission shall monitor and assess this Regulation every year in terms of food security and sovereignty and, if necessary, propose that it be repealed.

    Amendment  23

    Proposal for a regulation

    Annex I – table – rows 59 a, 59 b and 59 c (new)

     

     

    Text proposed by the Commission

    Amendment

     

    – Of rape or colza seeds:

     

    2306 41 –Of low erucic acid rape or colza seeds

     

    2306 49 –Other

     

    ANNEX: ENTITIES OR PERSONS
    FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion:

     

    Entity and/or person

    COPA-COGECA,  Secretary General

    European Commission, DG AGRI Unit E.1

    European Commission, DG Trade Unit E2

    Fertilizers Europe, Director General,

    LAT Nitrogen, Head of Public Affairs Europe

    Asociación Nacional de Fabricantes de Fertilizantes (ANFFE) (Spanish National Association of Fertilizer Manufacturers)Secretary General

    Asociación Agraria – Jóvenes Agricultores ASAJA- (Association of young farmers). President, EU Office Brussels

    Cooperativas Agrolimentarias de España, (Sapnish Association of Agricultural Cooperatives) EU Office Brussels

    Unión de Pequeños Agricultores y Ganaderos (UPA) (Association of small farmers) EU Office Brussels

     

    The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.

    Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for the opinion declares that she has submitted to the concerned natural persons the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

     

    PROCEDURE – COMMITTEE ASKED FOR OPINION

    Title

    Modification of customs duties applicable to imports of certain goods originating in or exported directly or indirectly from the Russian Federation and the Republic of Belarus

    References

    COM(2025)0034 – C10-0006/2025 – 2025/0021(COD)

    Committee(s) responsible

    INTA

     

     

     

    Opinion by

     Date announced in plenary

    AGRI

    10.3.2025

    Rapporteur for the opinion

     Date appointed

    Mireia Borrás Pabón

    27.2.2025

    Discussed in committee

    19.3.2025

     

     

     

    Date adopted

    5.5.2025

     

     

     

    Result of final vote

    +:

    –:

    0:

    25

    5

    14

    Members present for the final vote

    Sergio Berlato, Mireia Borrás Pabón, Asger Christensen, Barry Cowen, Carmen Crespo Díaz, Ivan David, Valérie Deloge, Salvatore De Meo, Csaba Dömötör, Paulo Do Nascimento Cabral, Herbert Dorfmann, Sebastian Everding, Carlo Fidanza, Maria Grapini, Cristina Guarda, Martin Häusling, Krzysztof Hetman, Céline Imart, Elsi Katainen, Stefan Köhler, Tomáš Kubín, Norbert Lins, Cristina Maestre, Maria Noichl, Gilles Pennelle, André Rodrigues, Katarína Roth Neveďalová, Bert-Jan Ruissen, Arash Saeidi, Eric Sargiacomo, Christine Singer, Pekka Toveri, Jessika Van Leeuwen, Veronika Vrecionová, Thomas Waitz, Maria Walsh

    Substitutes present for the final vote

    Peter Agius, Wouter Beke, Benoit Cassart, David Cormand, Claire Fita, Esther Herranz García, Anna Zalewska

    Members under Rule 216(7) present for the final vote

    Giuseppe Lupo, Jana Nagyová

     

    MIL OSI Europe News

  • MIL-OSI USA: Padilla, Colleagues Urge Social Security Administration to Reverse Decision to Maliciously & Illegally List Immigrants as “Dead”

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    Padilla, Colleagues Urge Social Security Administration to Reverse Decision to Maliciously & Illegally List Immigrants as “Dead”

    WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.), Ranking Member of the Senate Judiciary Immigration Subcommittee, joined 15 of his Democratic Senate colleagues in condemning and demanding the reversal of the Social Security Administration’s (SSA) recent decision to list certain immigrants as “dead” in the master files.
    The Senators highlighted the departure from previous uses of SSA master files, noting that they normally share the files with federal agencies, banks, credit bureaus, or other financial institutions to prevent them from mistakenly paying deceased individuals or fraudsters trying to impersonate them. These files prevent over $50 million in improper payments per month. The death master files are now being weaponized against noncitizens, however, in a malicious attempt to keep them from participating in the U.S. economy.
    “These arbitrary actions—intended to weaponize Social Security in the Administration’s attack on immigrants—are disgraceful and will erode the integrity of and trust in Social Security,” wrote the Senators.
    “These noncitizens were lawfully present and granted work authorization by the Department of Homeland Security (DHS), making them eligible for Social Security numbers (SSNs) to work and contribute to our nation. SSNs allow noncitizens to participate in the economy by obtaining housing, bank accounts, and insurance. Their work helps to boost the United States’ Gross Domestic Product by trillions of dollars,” continued the Senators. “But now, these noncitizens will no longer have access to their own financial resources because SSA has taken the unprecedented action of declaring them ‘dead’ in a cruel and Orwellian attempt to force them to leave the United States.”
    The Senators continued by highlighting incorrect designations of living, legal immigrants as “dead” without a chance to appeal, calling out the Department of Homeland Security for labeling these noncitizens as “criminals” or “suspected criminals” without sufficient investigations, as demonstrated by the erroneous deportation of Kilmar Abrego Garcia. Most of the more than 6,000 noncitizens who were declared “dead” had lawfully received their SSNs and had lawful authorization to be in the country. The Senators further emphasized that SSA lacks the authority to make these false categorizations for living noncitizens.
    “Such use of the death master files raises the question of whether SSA may list other living legal immigrants—or even American citizens—as ‘dead’ in the death master files without justification,” added the Senators. “It should frighten every American that SSA could make the unilateral decision to ruin their financial lives without even a chance to appeal.”
    The Senators concluded by denouncing misinformation spread by President Trump regarding Social Security, criticizing his baseless claim that people over 300 years old were receiving Social Security benefits. They urged SSA to immediately reverse their cruel, fraudulent mislabeling scheme.
    The letter was led by Senate Democratic Whip Dick Durbin (D-Ill.), Ranking Member of the Senate Judiciary Committee, and U.S. Senator Ron Wyden (D-Ore.). In addition to Senator Padilla, the letter was also signed by U.S. Senators Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Tammy Duckworth (D-Ill.), Mazie Hirono (D-Hawaii), Andy Kim (D-N.J.), Edward J. Markey (D-Mass.), Jack Reed (D-R.I.), Bernie Sanders (I-Vt.), Adam Schiff (D-Calif.), Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.).
    Senator Padilla has fought against the Trump Administration’s weaponization of migrants’ personal information and files. Senator Padilla, Senate Finance Committee Ranking Member Wyden, Senator Catherine Cortez Masto (D-Nev.), and Senator Warren recently urged the acting Treasury Inspector General for Tax Administration to investigate several reports that the Trump Administration is potentially violating strict taxpayer privacy laws by providing highly sensitive and legally protected taxpayer data to DHS and personnel affiliated with Elon Musk across various federal agencies. Padilla, Cortez Masto, and Wyden previously condemned the Internal Revenue Service’s (IRS) plan to provide sensitive taxpayer information to DHS to locate suspected undocumented immigrants and led a letter to IRS and DHS leadership raising the alarm on reports that DHS and the Department of Government Efficiency had illegally requested this information.
    Full text of the letter to SSA Commissioner Frank Bisignano is available here and below:
    Dear Commissioner Bisignano: We write to strongly object to the Social Security Administration’s (SSA) apparent decision to list living noncitizens as “dead” in the agency’s master files. These arbitrary actions—intended to weaponize Social Security in the Administration’s attack on immigrants—are disgraceful and will erode the integrity of and trust in Social Security.
    SSA collects death records from families, financial institutions, and government agencies and compiles them into death master files, which the agency then shares with certain federal agencies, banks, credit bureaus, and other financial institutions to prevent improper payments to people who have died or those fraudulently seeking to impersonate someone who is deceased. In fact, the death master files help to prevent more than $50 million in improper payments each month. However, it appears that SSA is now using the death master files for another purpose: a weapon against living noncitizens.
    In April, the New York Times reported SSA maliciously has listed living noncitizens as “dead” in its death master files. These noncitizens were lawfully present and granted work authorization by the Department of Homeland Security (DHS), making them eligible for Social Security numbers (SSNs) to work and contribute to our nation. SSNs allow noncitizens to participate in the economy by obtaining housing, bank accounts, and insurance. Their work helps to boost the United States’ Gross Domestic Product by trillions of dollars. But now, these noncitizens will no longer have access to their own financial resources because SSA has taken the unprecedented action of declaring them “dead” in a cruel and Orwellian attempt to force them to leave the United States.
    According to an internal memo, DHS claims that these noncitizens are “criminals” and “suspected terrorists.” But the proper procedure if a noncitizen is a criminal or a suspected terrorist is to initiate proceedings against them in immigration court, not for the SSA to arbitrarily declare them “dead” without any proof. In addition, DHS, not the SSA, makes determinations as to whether or not a noncitizen is eligible to work and whether to terminate or revoke work authorization. Finally, SSA has procedures the agency follows when it is determined that an individual no longer has work authorization or has lost status, and they do not involve declaring an individual dead. For example, a noncitizen’s Social Security card may state “Valid for work only with DHS authorization” or “Not valid for employment.”
    Yet, according to press reports, most of the more than 6,000 noncitizens declared “dead” were lawfully authorized by DHS to be in the United States and lawfully obtained SSNs. They were thoroughly vetted and underwent mandatory security checks before receiving authorization to travel to United States airports, where they then were individually screened by U.S. Customs and Border Patrol officers before being cleared to enter. The New York Times report indicated SSA has listed several minors, including a 13-year-old, as “dead” in the death master files, while the Washington Post reported that SSA workers “found no evidence of crimes or law enforcement interactions” for others. Further, SSA has no authority to erroneously categorize living noncitizens as “dead” in its death master files. Such use of the death master files raises the question of whether SSA may list other living legal immigrants—or even American citizens—as “dead” in the death master files without justification. It should frighten every American that SSA could make the unilateral decision to ruin their financial lives without even a chance to appeal.
    In his Joint Address to Congress in March, President Trump claimed there were people over the age of 300 receiving Social Security benefits, simply because some of the death master files lacked a recorded death date. His assertion was not true, and SSA’s actions now are turning this tool to prevent fraud into one that instead facilitates it. We urge SSA not to use the death master files in this manner and to remove noncitizens falsely listed as “dead” from the files.
    Sincerely,

    MIL OSI USA News

  • MIL-OSI USA: Mexican National and Alleged Alien Smuggler Indicted on First Material Support of Terrorism Charges Against CJNG Member

    Source: US State of North Dakota

    An indictment unsealed today in the Western District of Texas is the first in the nation to charge a Mexican national with providing material support to a designated foreign terrorist organization based on her involvement with the Cartel de Jalisco Nueva Generación (CJNG), including providing the cartel with grenades and engaging in alien smuggling, firearms trafficking, bulk cash smuggling, and narcotics trafficking on its behalf.

    “Cartels like CJNG are terrorist groups that wreak havoc in American communities and are responsible for countless lives lost in the United States, Mexico, and elsewhere.” said Attorney General Pamela Bondi. “This announcement demonstrates the Justice Department’s unwavering commitment to securing our borders and protecting Americans through effective prosecution.”

    According to court documents, Maria Del Rosario Navarro-Sanchez, 39, of Mexico, conspired with others to provide and did attempt to provide grenades to CJNG, a designated foreign terrorist organization. Additionally, Navarro-Sanchez, is charged with conspiracy to smuggle and transport aliens in the United States, straw purchasing and trafficking in firearms, bulk cash smuggling conspiracy, and conspiracy to possess a controlled substance with intent to distribute. Co-defendant Luis Carlos Davalos-Lopez, 27, of Mexico, is charged with conspiracy to smuggle illegal aliens into and transport aliens in the United States, straw purchasing and firearms trafficking. Co-defendant Gustavo Castro-Medina, 28, of Mexico, is charged with straw purchasing and firearms trafficking, conspiracy to possess a controlled substance with intent to distribute, and possession of a controlled substance with intent to distribute.

    On Feb. 20, the U.S. Department of State announced the designation of eight international cartels, including CJNG, as Foreign Terrorist Organizations (FTOs) and specially designated global terrorists. This designation makes available much stronger criminal charges in the fight to secure our nation’s borders. CJNG is a transnational criminal organization that controls a significant portion of the narcotics trafficking trade and has a presence in nearly every part of Mexico and dozens of other countries, including the United States. In addition to trafficking fentanyl, CJNG engages in money laundering, bribery, extortion of migrants, taxing of migrant smugglers, and other criminal activities, including acts of violence and intimidation. According to the State Department, CJNG has conducted attacks on Mexican military and police with military grade weaponry, the use of drones to drop explosives on Mexican law enforcement, and assassinations or attempted assassinations of Mexican officials.

    On Jan. 20, President Trump directed the Justice Department and other agencies to pursue total elimination of cartels and transnational criminal organizations because they pose extremely serious threats to the United States, including by jeopardizing a stable and secure border. These and other criminal organizations commit brutal and intolerable violent crimes related to narcotics and firearms trafficking, money laundering, extortion, and other criminal acts. They also are responsible for huge flows of illegal immigration into the United States. They organize and facilitate all manners of illicit travel and immigration into the United States through the southern and northern borders and rely on co-conspirators and organization members operating in various countries throughout North and South America. This situation is untenable and threatens our national security. The Department of Justice and its law enforcement partners are committed to protecting the United States against invasion, working urgently toward the goal of total elimination of cartels and transnational criminal organizations, aggressively enforcing our immigration laws, and maximizing the impact and effectiveness of all available law enforcement tools.

    “We will never allow criminal gangs and cartels to terrorize American communities,” said Secretary of Homeland Security Kristi Noem. “The days of unchecked gang and cartel violence are over.”

    “As alleged, the defendant engaged in multiple of the most insidious kinds of criminal activity: firearms trafficking, narcotics trafficking, human and bulk cash smuggling, and even providing grenades to CJNG,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Today’s announcement demonstrates the Criminal Division’s hard work and commitment to eliminate cartels and foreign terrorist organizations like CJNG.”

    “The slew of federal charges we have brought against Navarro-Sanchez sends a monumental message through the ranks of cartels like CJNG—now designated as a terrorist organization—along with those who support them in various capacities, that U.S. law enforcement is turning up the pressure to crack down on unlawful immigration practices and to dismantle the smuggling of illicit drugs and firearms,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “These crimes, all included as allegations in the indictment, do nothing but place human lives on both sides of the border in grave danger, while loading the pockets of criminals who profit off of them.”

    “The arrest of Maria Del Rosario Navarro-Sanchez should send a clear message to people who wish to align themselves with terrorist groups that they will be sought out and held to the highest extent of the law,” said FBI Director Kash Patel. “I’m extremely proud of the dedicated men and women of the FBI and its law enforcement partners who work tirelessly every day to protect Americans and keep our communities safe.”

    “The brutality and destruction inflicted by cartels and terrorist organizations is devastating communities across the United States and around the world,” said Bureau of Tobacco, Firearms and Explosives (ATF) Acting Director Dan Driscoll. “The capture and arrest of Maria Del Rosario Navarro-Sanchez demonstrates what international law enforcement cooperation can achieve when united against the threat posed by these violent networks. ATF and our partners will use every tool at our disposal to relentlessly hunt down, dismantle, and bring to justice every trafficker, every cartel operative, and every individual who dares to threaten the safety and sovereignty of our communities.”

    “This case lays bare the true nature of the threat we face,” said Drug Enforcement Administration Acting Administrator Robert Murphy. “A cartel associate providing support to a designated foreign terrorist organization is not just a criminal threat—it is a national security threat. DEA will use every tool of law enforcement to dismantle CJNG and its network that floods our streets with poison, traffics in human lives, and wages violence against law and order. We are not just keeping our communities safe from dangerous, illegal drugs—we are fighting a national security crisis.”

    “Supplying grenades to a designated terrorist organization—while trafficking firearms, narcotics, and human beings—is not just criminal; it’s a direct assault on the security of the United States,” said Acting U.S. Immigration and Customs Enforcement (ICE) Director Todd M. Lyons. “Sanchez acted as a key enabler of violence who empowered cartels and terrorist organizations. Her crimes extended beyond smuggling; she was involved in firearms trafficking, bulk cash smuggling conspiracy, and a conspiracy to distribute controlled substances. Her actions endangered countless lives and undermined our efforts to protect the nation’s borders and communities. Confronting this level of criminality demands more than resolve—it requires a unified, all-of-government response, and that’s exactly what we demonstrated today: a coordinated effort to identify, disrupt, and bring to justice those who profit from violence and human suffering.”

    Photo of 20 AK-47 type firearms and two .50 caliber rifles seized on August 21, 2023, in the Western District of Texas.

    Photo of man-made tunnel used to smuggle aliens from Mexico to the United States.

    Photo of three packages of meth and multiple packages of blue fentanyl pills seized in March 2023.

    AM-15, multi-caliber AR-15 variant aka “El Dorado” recovered from Navarro-Sanchez’s possession during her arrest in Mexico on May 4, 2025.

    Since its establishment, Joint Task Force Alpha’s (JTFA) work has resulted in increased coordination and collaboration between both domestic and foreign law enforcement; precedent setting indictments, extraditions and prosecutions; more than 365 domestic and international arrests of leaders, organizers, and significant facilitators of these crimes; more than 334 U.S. convictions; more than 281 defendants sentenced, including significant jail sentences imposed; and substantial seizures and forfeitures of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs.

    The FBI, ATF, DEA, and Homeland Security Investigations in El Paso, assisted by the U.S. Border Patrol, investigated the case. ATF Legal Attachés in Mexico City and the Mexico Attorney General’s Office also known as Fiscalía General de la República (FGR) Firearms Trafficking Unit provided substantial assistance. The CBP’s National Targeting Center, and ICE HSI’s Human Smuggling Unit in Washington, D.C. also provided assistance with the investigation.

    The case announced today is being prosecuted by Assistant U.S. Attorney Kyle Myers and JTFA Associate Director Ian Hanna of the Western District of Texas, and Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section. The Justice Department’s Office of International Affairs and Judicial Attachés in Mexico provided substantial assistance. The Justice Department thanks its Mexican law enforcement partners, who arrested Navarro-Sanchez on May 4, during an enforcement operation.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood (PSN).

    This case is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi­ jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The OCDETF El Paso / Las Cruces Strike Force is comprised of agents and officers from CBP, HSI,  DEA, FBI, IRS Criminal Investigation, the U.S. Marshals Service, ATF, the El Paso County Sheriff’s Office (EPSO), and the El Paso Police Department (EPPD).

    The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News

  • MIL-OSI Security: Mexican National and Alleged Alien Smuggler Indicted on First Material Support of Terrorism Charges Against CJNG Member

    Source: United States Attorneys General 13

    An indictment unsealed today in the Western District of Texas is the first in the nation to charge a Mexican national with providing material support to a designated foreign terrorist organization based on her involvement with the Cartel de Jalisco Nueva Generación (CJNG), including providing the cartel with grenades and engaging in alien smuggling, firearms trafficking, bulk cash smuggling, and narcotics trafficking on its behalf.

    “Cartels like CJNG are terrorist groups that wreak havoc in American communities and are responsible for countless lives lost in the United States, Mexico, and elsewhere.” said Attorney General Pamela Bondi. “This announcement demonstrates the Justice Department’s unwavering commitment to securing our borders and protecting Americans through effective prosecution.”

    According to court documents, Maria Del Rosario Navarro-Sanchez, 39, of Mexico, conspired with others to provide and did attempt to provide grenades to CJNG, a designated foreign terrorist organization. Additionally, Navarro-Sanchez, is charged with conspiracy to smuggle and transport aliens in the United States, straw purchasing and trafficking in firearms, bulk cash smuggling conspiracy, and conspiracy to possess a controlled substance with intent to distribute. Co-defendant Luis Carlos Davalos-Lopez, 27, of Mexico, is charged with conspiracy to smuggle illegal aliens into and transport aliens in the United States, straw purchasing and firearms trafficking. Co-defendant Gustavo Castro-Medina, 28, of Mexico, is charged with straw purchasing and firearms trafficking, conspiracy to possess a controlled substance with intent to distribute, and possession of a controlled substance with intent to distribute.

    On Feb. 20, the U.S. Department of State announced the designation of eight international cartels, including CJNG, as Foreign Terrorist Organizations (FTOs) and specially designated global terrorists. This designation makes available much stronger criminal charges in the fight to secure our nation’s borders. CJNG is a transnational criminal organization that controls a significant portion of the narcotics trafficking trade and has a presence in nearly every part of Mexico and dozens of other countries, including the United States. In addition to trafficking fentanyl, CJNG engages in money laundering, bribery, extortion of migrants, taxing of migrant smugglers, and other criminal activities, including acts of violence and intimidation. According to the State Department, CJNG has conducted attacks on Mexican military and police with military grade weaponry, the use of drones to drop explosives on Mexican law enforcement, and assassinations or attempted assassinations of Mexican officials.

    On Jan. 20, President Trump directed the Justice Department and other agencies to pursue total elimination of cartels and transnational criminal organizations because they pose extremely serious threats to the United States, including by jeopardizing a stable and secure border. These and other criminal organizations commit brutal and intolerable violent crimes related to narcotics and firearms trafficking, money laundering, extortion, and other criminal acts. They also are responsible for huge flows of illegal immigration into the United States. They organize and facilitate all manners of illicit travel and immigration into the United States through the southern and northern borders and rely on co-conspirators and organization members operating in various countries throughout North and South America. This situation is untenable and threatens our national security. The Department of Justice and its law enforcement partners are committed to protecting the United States against invasion, working urgently toward the goal of total elimination of cartels and transnational criminal organizations, aggressively enforcing our immigration laws, and maximizing the impact and effectiveness of all available law enforcement tools.

    “We will never allow criminal gangs and cartels to terrorize American communities,” said Secretary of Homeland Security Kristi Noem. “The days of unchecked gang and cartel violence are over.”

    “As alleged, the defendant engaged in multiple of the most insidious kinds of criminal activity: firearms trafficking, narcotics trafficking, human and bulk cash smuggling, and even providing grenades to CJNG,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Today’s announcement demonstrates the Criminal Division’s hard work and commitment to eliminate cartels and foreign terrorist organizations like CJNG.”

    “The slew of federal charges we have brought against Navarro-Sanchez sends a monumental message through the ranks of cartels like CJNG—now designated as a terrorist organization—along with those who support them in various capacities, that U.S. law enforcement is turning up the pressure to crack down on unlawful immigration practices and to dismantle the smuggling of illicit drugs and firearms,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “These crimes, all included as allegations in the indictment, do nothing but place human lives on both sides of the border in grave danger, while loading the pockets of criminals who profit off of them.”

    “The arrest of Maria Del Rosario Navarro-Sanchez should send a clear message to people who wish to align themselves with terrorist groups that they will be sought out and held to the highest extent of the law,” said FBI Director Kash Patel. “I’m extremely proud of the dedicated men and women of the FBI and its law enforcement partners who work tirelessly every day to protect Americans and keep our communities safe.”

    “The brutality and destruction inflicted by cartels and terrorist organizations is devastating communities across the United States and around the world,” said Bureau of Tobacco, Firearms and Explosives (ATF) Acting Director Dan Driscoll. “The capture and arrest of Maria Del Rosario Navarro-Sanchez demonstrates what international law enforcement cooperation can achieve when united against the threat posed by these violent networks. ATF and our partners will use every tool at our disposal to relentlessly hunt down, dismantle, and bring to justice every trafficker, every cartel operative, and every individual who dares to threaten the safety and sovereignty of our communities.”

    “This case lays bare the true nature of the threat we face,” said Drug Enforcement Administration Acting Administrator Robert Murphy. “A cartel associate providing support to a designated foreign terrorist organization is not just a criminal threat—it is a national security threat. DEA will use every tool of law enforcement to dismantle CJNG and its network that floods our streets with poison, traffics in human lives, and wages violence against law and order. We are not just keeping our communities safe from dangerous, illegal drugs—we are fighting a national security crisis.”

    “Supplying grenades to a designated terrorist organization—while trafficking firearms, narcotics, and human beings—is not just criminal; it’s a direct assault on the security of the United States,” said Acting U.S. Immigration and Customs Enforcement (ICE) Director Todd M. Lyons. “Sanchez acted as a key enabler of violence who empowered cartels and terrorist organizations. Her crimes extended beyond smuggling; she was involved in firearms trafficking, bulk cash smuggling conspiracy, and a conspiracy to distribute controlled substances. Her actions endangered countless lives and undermined our efforts to protect the nation’s borders and communities. Confronting this level of criminality demands more than resolve—it requires a unified, all-of-government response, and that’s exactly what we demonstrated today: a coordinated effort to identify, disrupt, and bring to justice those who profit from violence and human suffering.”

    Photo of 20 AK-47 type firearms and two .50 caliber rifles seized on August 21, 2023, in the Western District of Texas.

    Photo of man-made tunnel used to smuggle aliens from Mexico to the United States.

    Photo of three packages of meth and multiple packages of blue fentanyl pills seized in March 2023.

    AM-15, multi-caliber AR-15 variant aka “El Dorado” recovered from Navarro-Sanchez’s possession during her arrest in Mexico on May 4, 2025.

    Since its establishment, Joint Task Force Alpha’s (JTFA) work has resulted in increased coordination and collaboration between both domestic and foreign law enforcement; precedent setting indictments, extraditions and prosecutions; more than 365 domestic and international arrests of leaders, organizers, and significant facilitators of these crimes; more than 334 U.S. convictions; more than 281 defendants sentenced, including significant jail sentences imposed; and substantial seizures and forfeitures of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs.

    The FBI, ATF, DEA, and Homeland Security Investigations in El Paso, assisted by the U.S. Border Patrol, investigated the case. ATF Legal Attachés in Mexico City and the Mexico Attorney General’s Office also known as Fiscalía General de la República (FGR) Firearms Trafficking Unit provided substantial assistance. The CBP’s National Targeting Center, and ICE HSI’s Human Smuggling Unit in Washington, D.C. also provided assistance with the investigation.

    The case announced today is being prosecuted by Assistant U.S. Attorney Kyle Myers and JTFA Associate Director Ian Hanna of the Western District of Texas, and Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section. The Justice Department’s Office of International Affairs and Judicial Attachés in Mexico provided substantial assistance. The Justice Department thanks its Mexican law enforcement partners, who arrested Navarro-Sanchez on May 4, during an enforcement operation.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood (PSN).

    This case is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi­ jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The OCDETF El Paso / Las Cruces Strike Force is comprised of agents and officers from CBP, HSI,  DEA, FBI, IRS Criminal Investigation, the U.S. Marshals Service, ATF, the El Paso County Sheriff’s Office (EPSO), and the El Paso Police Department (EPPD).

    The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI

  • MIL-OSI USA: New Jersey Return Preparer Pleads Guilty to Preparing False Tax Returns for Clients

    Source: US State Government of Utah

    A New Jersey man pleaded guilty yesterday to preparing false tax returns for clients.

    The following is according to court documents and statements made in court: Vito A. Pascarella, of Somerset, ran a tax preparation business. Pascarella prepared, and caused to be prepared, false tax returns for clients. On those tax returns, Pascarella reported false wage numbers, falsely reported that taxpayers owned and operated businesses that they did not own or operate, and falsely reported that those purported businesses earned gross receipts and incurred business expenses that they did not.

    In total, Pascarella caused a tax loss to the IRS of over $550,000.

    Pascarella is scheduled to be sentenced on Sept. 15. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey made the announcement.

    IRS Criminal Investigation is investigating the case.

    Assistant Chief Thomas F. Koelbl and Trial Attorney Emerson Gordon-Marvin of the Tax Division are prosecuting the case.

    MIL OSI USA News

  • MIL-OSI Security: New Jersey Return Preparer Pleads Guilty to Preparing False Tax Returns for Clients

    Source: United States Attorneys General

    A New Jersey man pleaded guilty yesterday to preparing false tax returns for clients.

    The following is according to court documents and statements made in court: Vito A. Pascarella, of Somerset, ran a tax preparation business. Pascarella prepared, and caused to be prepared, false tax returns for clients. On those tax returns, Pascarella reported false wage numbers, falsely reported that taxpayers owned and operated businesses that they did not own or operate, and falsely reported that those purported businesses earned gross receipts and incurred business expenses that they did not.

    In total, Pascarella caused a tax loss to the IRS of over $550,000.

    Pascarella is scheduled to be sentenced on Sept. 15. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey made the announcement.

    IRS Criminal Investigation is investigating the case.

    Assistant Chief Thomas F. Koelbl and Trial Attorney Emerson Gordon-Marvin of the Tax Division are prosecuting the case.

    MIL Security OSI

  • MIL-OSI USA: Maintaining Safer Roadways

    Source: US State of New York

    overnor Kathy Hochul today announced that the New York State Police, in collaboration with the New York State Department of Motor Vehicles and other State and local law enforcement agencies, issued more than 3,300 tickets during the first-ever “Operation Plate Check.” A special enforcement effort that took place from Saturday, April 26 through Saturday, May 3, this operation sought to identify vehicles on New York State roadways with fictitious license plates and fake “temp tags” in response to an increase in the use of fraudulent plates.

    “The safety of New Yorkers is my top priority, and this enforcement campaign reinforces ongoing efforts to crack down on individuals who are using fake and defaced plates to avoid paying tolls or detection by law enforcement,” Governor Hochul said. “Thanks to the efforts of the New York State Police and our partners in local law enforcement, we are sending a clear message to drivers: if you attempt to alter your license plate to avoid traffic cameras and toll readers, you will be caught.”

    Over the last few years, law enforcement has observed an increase in the use of fraudulent plates, in addition to operators who are deliberately covering, obstructing and defacing license plates to avoid traffic enforcement cameras, license plate readers and tolls.

    Over the course of this campaign, a total of 3,308 tickets were issued for license plate violations and 83 tickets were issued for suspended registrations. In addition to the tickets that were issued, “Operation Plate Check” resulted in the recovery of 14 stolen vehicles.

    NYS Police Troop T, which patrols the New York State Thruway, issued a campaign high of 664 tickets for license plate violations.

    New York State Police Superintendent Steven G. James said, “I want to commend the work that our members, and our law enforcement partners put into this campaign. The use of fraudulent and obstructed or defaced plates undermines public safety and we will continue our efforts to hold those who are trying to cheat the system accountable for their actions.”

    New York State Department of Motor Vehicles Commissioner and Chair of the Governor’s Traffic Safety Committee Mark J.F. Schroeder said, “The collaborative effort to crack down on forged and altered license plates – often called “ghost plates” – has been an important one to protect the safety of New York’s roads and everyone who uses them. Not only does it help catch those who commit crimes in vehicles with those improper plates, it makes sure the people who try to avoid the tolls that help to maintain New York’s roads are held responsible for paying their fair share. I commend the efforts of our DMV team and all of our law enforcement partners in taking this operation to areas around the state, and look forward to the results we will see during future campaigns.”

    New York State Thruway Authority Executive Director Frank G. Hoare said, “The Thruway Authority takes toll evasion very seriously, and we fully support the efforts of our partners at New York State Police Troop T in “Operation Plate Check” targeting license plate violations. Motorists who deliberately alter license plates or use fraudulent plates to avoid paying tolls are breaking the law- and New York State Police will catch them. We thank our transportation partners for their support and participation in this and future enforcement campaigns.”

    In 2024, Governor Kathy Hochul, New York City Mayor Eric Adams, Metropolitan Transportation Authority (MTA) Bridges and Tunnels and the New York City Police Department (NYPD) launched a multi-agency City and State-led task force dedicated to removing “ghost cars” — cars that are virtually untraceable by traffic cameras and toll readers because of their forged or altered license plates — from New York City streets. Since March 11, 2024, the task force conducted 82 toll enforcement operations, resulting in 1,055 arrests, more than 46,000 summonses and 4,525 interdicted vehicles for suspended registrations and fraudulent, obstructed or altered license plates.

    NYS State Police and NYSDMV were assisted with “Operation Plate Check” by the MTA Police, the TBTA Police, the NYPD, the Taxi and Limousine Commission Police, New York State Park Police, Buffalo PD, Niagara County Sheriff’s Office, Cheektowaga PD, Rochester PD, Syracuse PD, Onondaga Sheriff’s Office, Utica PD, Rome PD, Orangetown PD, Haverstraw PD, Spring Valley PD, and the Rockland County Intelligence Center.

    The New York State Department of Motor Vehicles would like to encourage motorists with peeling and damaged license plates to visit the DMV website to learn more about replacing those plates.

    MIL OSI USA News

  • MIL-OSI United Kingdom: Rich List shows extremely wealthy must be taxed properly

    Source: Scottish Greens

    It is time for the super-rich to pay their fair share.

    The Sunday Times Rich List shows that the extremely wealthy must be fairly taxed to save our public services, say the Scottish Greens.
     
    The call comes from the party’s finance spokesperson Ross Greer MSP, as the Sunday Times list put the combined wealth of the richest 350 people – including King Charles – at £772.8 billion.
     
    According to research from the Tax Justice Network, a 1% annual wealth tax on net assets over £10 million could raise almost £10 billion a year while only impacting the richest 0.4% of the population.
     
    Mr Greer said:

    “Over the last year Labour have used claims about the lack of money to justify cuts to pensioners’ Winter Fuel Payments and essential support for disabled people. At the same time, they are refusing to act while bills for everything from food to fuel skyrocket.
     
    “This Rich List shows this claim of a lack of money for what it is, a lie designed to protect the extremely wealthy from paying their fair share. The UK is one of the richest countries in the history of the world, but Westminster governments allow that wealth to be concentrated in the hands of a handful of elites instead of serving the public good.
     
    “This is wealth they couldn’t spend in a hundred lifetimes, but which we could use to fund our hospitals, schools and the services needed to end the scandal of child poverty. Instead, it’s spent on yachts, private jets and buying up land which should belong to communities.
     
    “In Scotland, Green MSPs have already delivered the most progressive income tax system in the UK, asking those who can afford it to pay a little more and delivering an extra £1.7 billion a year for the essential services we all rely on.
     
    “But the most important tax powers, which could be used to fairly redistribute the wealth of the super-rich, are still held at Westminster. And Labour have shown that they’d prefer to take food from the mouths of children and heating from the homes of the elderly than touch the assets of their billionaire friends and donors.
     
    “Future generations will look back at this absurd concentration of wealth and the displays of excess and greed that come with it, and ask why it was allowed to get so out of control. There’s no better time than now to start reversing course. That begins by taxing wealth fairly and using the money to build a fairer, greener society.”

    MIL OSI United Kingdom

  • MIL-OSI USA: Welch, Moody, Baldwin Introduce Bipartisan Bill to Give Tax Relief to Victims of Fraud, Scams, Theft, and Disasters

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    WASHINGTON, D.C. – U.S. Senators Peter Welch (D-Vt.), Ashley Moody (R-Fla.), and Tammy Baldwin (D-Wis.) this week introduced the Tax Relief for Victims of Crimes, Scams, and Disasters Act, bipartisan legislation to give relief to those who have been victims of fraud, scams, thefts, accidents, and other personal casualty losses. The Senators’ bill would reinstate the tax deduction for personal casualty and theft losses and ensure victims of scams, robberies, storms, and fires do not have to pay taxes on stolen assets and further wipe out their hard-earned savings and financial security.  
    “It’s outrageous that folks scammed out of their life’s savings are hit with large tax bills.  I’m proud to introduce this bill to reinstate this important tax deduction to provide crucial financial relief to those victimized by scams and theft,” said Senator Welch. “Vermont experienced catastrophic floods in July of 2023 and 2024. We know firsthand that victims of floods, storms, and fires go through so much—the last thing they should worry about is being penalized for a natural disaster.”  
    “As hurricane season is around the corner, I will continue supporting policies that protect Floridians from scammers and fraudsters,” said Senator Moody. “My Tax Relief for Victims of Crimes, Scams and Disasters Act will provide commonsense tax relief for victims, often seniors, who have been financially devastated by scams, crimes or destruction from disasters. This legislation will help folks get back on their feet when they experience hardship. When I was Attorney General of Florida, I made sure to fight for Floridians who fell victim to scams, and I will continue bringing this fight to D.C. so that folks have the protections they need.” 
    “When Wisconsinites fall victim to a fraud or scam, the last thing they should have to worry about is being slapped with an unexpected tax bill once tax season rolls around,” said Senator Baldwin. “I am proud to work with my Republican and Democratic colleagues to introduce this commonsense bill to help make sure if someone is down and out, they have one less thing to worry about than being hit with a tax bill.” 
    “The Elder Justice Coalition commends Senators Baldwin, Moody and Welch for introducing the Tax Relief for Victims of Crimes, Scams, and Disasters Act,” said Bob Blancato, National Coordinator of the Elder Justice Coalition. “It is unconscionable that older scam victims who lose hundreds of thousands of dollars face the compounded misery of having to pay taxes on the money lost.  Scams are rampant in this nation and serve to exploit the most vulnerable older adults. We hope Senator Baldwin’s bill can be made part of a future tax package. Tax relief for scam victims is tax fairness.”  
    “The Financial Services Institute (FSI) is proud to support the Tax Relief for Victims of Crimes, Scams and Disasters Act,” said Dale Brown, President & CEO of Financial Services Institute. “Owing taxes on stolen retirement funds makes an already painful situation worse. Main Street Americans cannot afford to lose their life savings, which they rely upon for a financially secure retirement. This bill will provide some relief to victims and mitigate damages as they work with their trusted financial advisor to recover losses and regain their financial footing.” 
    “With widespread financial fraud and scams impacting many Americans’ retirement security and financial livelihoods, CFP Board enthusiastically supports this critical piece of legislation that would lessen the impact of financial loss. We look forward to seeing this bill get to the finish line,” said Erin Koeppel, Managing Director of Government Relations and Public Policy Counsel at CFP Board.  
    Until 2018, the federal government allowed victims of crimes and unexpected, uninsurable disasters to deduct these losses from their taxes with a provision called the Casualty and Theft Loss Deduction. Today, scam victims and homeowners are on the hook for tens or hundreds of thousands of dollars in federal taxes unless their misfortunes meet a narrow set of criteria.  
    The growing sophistication of cybercriminal networks has led to a rapid proliferation in fraud for the past five years. In 2024 alone, American taxpayers reported $16.6 billion in cyber fraud to the Federal Bureau of Investigation (FBI). The average victim of elder fraud lost $83,000. Natural disasters are also on the rise during a period of increasing insurance premiums and unexpected claim denials.  
    Without a reinstatement of the casualty and theft loss deduction, Americans who are victims of theft and non-federally declared disasters will continue to face hefty federal tax bills that the IRS is obligated to enforce. 
    The Tax Relief for Victims of Crimes, Scams, and Disasters Act:  
    Reinstates the tax deduction for personal casualty loss and provides retroactive coverage to taxpayers who suffered losses in the years that followed.  
    Ensures that victims who suffered losses since 2017 are able to file an amended tax return accounting for their personal casualty loss.  
    Companion legislation will be introduced in the U.S. House by Representatives Jamie Raskin (D-MD-08) and Greg Steube (R-FL-17). 
    The legislation is endorsed by the AARP, The Elder Justice Coalition, the National Association of Consumer Advocates, AICPA-CIMA, National Association of Enrolled Agents, National Association of Realtors, American Land Title Association, CFP Board, Investment Advisers Association, Financial Services Institute, Aspen Institute Financial Security Program, Association of Mature American Citizens, National Association of Government Defined Contribution Administrators, Operation Shamrock, and SPARK Institute. 
    As a member of the U.S. House of Representatives, Senator Welch voted against the 2017Republican tax bill, which repealed a tax deduction previously available to victims of scams, thefts, accidents, and other property casualty losses. In turn, reporting has revealed a pattern of Americans ending up with a tax bill after losing money through scams, thefts, and other similar events.   
    Learn more about the Tax Relief for Victims of Crimes, Scams, and Disasters Act. 
    Read and download the full text of the bill.  

    MIL OSI USA News

  • MIL-OSI Russia: China’s digital industry revenue up 9.4% in Q1

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

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

    BEIJING, May 16 (Xinhua) — China’s digital industry posted revenue of 8.5 trillion yuan (about 1.18 trillion U.S. dollars) in the first quarter of this year, up 9.4 percent from a year earlier.

    The growth rate of the indicator is 4.4 percentage points higher than for the same period last year, according to data released on Friday by the Ministry of Industry and Information Technology of the People’s Republic of China.

    In particular, revenue from digital technologies in the manufacturing industry grew by 10.4 percent, and in the services sector by 8.2 percent.

    By the end of March, the number of 5G base stations in China exceeded 4.39 million units, and the country’s 5G subscriber penetration rate reached 75.9 percent, the ministry said in April.

    Key sectors of the digital economy are stable. Revenue in the software industry increased by 10.6 percent year-on-year to 3.1 trillion yuan.

    China has set a goal of using digital technology to transform and upgrade its traditional industries and is now accelerating the implementation of its “AI Plus” action plan. -0-

    MIL OSI Russia News

  • MIL-OSI Security: Four Dominican Nationals Indicted for Drug Conspiracy Involving Fentanyl and Crack Cocaine

    Source: Office of United States Attorneys

    BOSTON – A federal grand jury in Boston has indicted four Dominican nationals residing in Lawrence, Mass., on drug charges.

    Juana Luduvina Aguasvivas, 66, Richard Arias-Aguasvivas, 38, Ariel Ruiz, 31, and Yonelin Baez Soto, 30, are charged with conspiracy to distribute and possess with intent to distribute controlled substances. Arias-Aguasvivas, Ruiz and Baez were also charged with distribution of and possession with intent to distribute fentanyl and/or crack cocaine. All four defendants are scheduled to appear in federal court in Boston on May 29, 2025.

    According to the charging documents, in April 2021, an investigation began into a drug trafficking organization operating in Lawrence that was supplying fentanyl, cocaine base and cutting agents to customers. Between April 2021 and February 2025, investigators conducted controlled purchases, during which Aguasvivas, Arias-Aguasvivas, Ruiz and Baez collectively sold more than 800 grams of fentanyl, more than 80 grams of crack cocaine and copious amounts of cutting agents.

    In May 2025, Baez pleaded guilty to one count of unlawful reentry and is scheduled to be sentenced on those charges on Aug. 6, 2025.

    Arias-Aguasvivas, Ruiz and Baez each face at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a $10 million fine. Aguasvivas faces at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a $5 million fine. The defendants are subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon on the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

    United States Attorney Leah B. Foley and Kimberly Milka, Acting Special Agent in charge for the Federal Bureau of Investigations, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police, Essex County District Attorney’s Office, North Andover Police Department, Billerica Police Department, Lowell Police Department, Haverhill Police Department, Methuen Police Department, Internal Revenue Service and Homeland Security Investigations. Assistant U.S. Attorney Annapurna Balakrishna of the Criminal Division is prosecuting this case. 

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI

  • MIL-OSI: Svitlana Buriak wins the 11th IBFD Frans Vanistendael Award

    Source: GlobeNewswire (MIL-OSI)

    Amsterdam, May 16, 2025 (GLOBE NEWSWIRE) — At a ceremony this afternoon, Svitlana Buriak was announced as the winner of the award for her publication titled “International Taxation of Global Value Networks“, published by IBFD Doctoral Series.

    The ongoing discussions regarding the allocation of taxing rights between countries in the digital age have primarily centered around concepts such as permanent establishments (PE) and substantive economic presence. In her book, Svitlana Buriak addresses a crucial yet often overlooked aspect: the increasing trend of ‘servicification’ in the global economy. Adopting a multi-disciplinary approach, the author brings into focus the role of intangibles and non-equity modes of internationalization, shedding light on the challenges associated with the division of economic rent that arises from these developments. Overall, an eminently readable and thought-provoking work.

    For these reasons, the jury concluded that the publication deserved to win the award, which was personally conferred by Rosa Vanistendael, the widow of Frans Vanistendael.

    About the author

    Dr. Svitlana Buriak is a tax advisor specializing in transfer pricing at Loyens & Loeff (Amsterdam), assistant professor at the University of Amsterdam (UvA), and director of the UvA Centre for Transfer Pricing and Income Allocation. With around 10 years of experience combining practice and policy-oriented academic work, Dr. Buriak focuses on addressing complex international tax and transfer pricing challenges through innovative and practical solutions. Her approach is grounded in legal research, economics, and policy considerations, taking into account evolving economic and business realities, as well as international relations, aiming to deliver legal analyses that are both legally sound and relevant in today’s global landscape.

    Applications and Nominations are welcome for the 12th IBFD Frans Vanistendael Award 2026

    Submissions are accepted until 31 December 2025 at ibfd.award@ibfd.org. Competition rules for 2026 will be available on the website as of next week. The 12th Frans Vanistendael Award will be conferred at IBFD’s headquarters in Amsterdam in May 2026. 

    About IBFD
    IBFD is a leading international provider of cross-border tax expertise, with a long-standing history of supporting and contributing to tax research and academic activities. As an independent foundation, IBFD utilizes its global network of tax experts and its Knowledge Centre to serve Fortune 500 companies, governments, international consultancy firms and tax advisers.

    Attachment

    The MIL Network

  • MIL-OSI: Eightco Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Quarter Driven by Focus on Deploying Capital into the Refurbished Apple Products Business and Prioritizing Financial Stability for Long-Term Growth

    • First quarter 2025 revenue growth of 25% to $9.9mn compared to $8.0mn for the prior year quarter, due to focus on refurbished apple products sales
    • First quarter 2025 operating loss of $1.4mn, a reduction of 55% compared to an operating loss of $3.2mn for the prior year quarter, due to lower SG&A and absence of restructuring and severance expenses in the first quarter of 2025

    Easton, PA, May 16, 2025 (GLOBE NEWSWIRE) — Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) today announced financial results for the three months ended March 31, 2025.

    Paul Vassilakos, CEO of Eightco and President of Forever 8 Fund, LLC, the Company’s primary operating subsidiary (“Forever 8”), stated “In order to improve our cost structure to deliver long-term value to shareholders, we continue to reduce operating costs and address selling and administrative expenses. Our goal is to remain on this path to further support the Company’s growth as it continues to explore funding options.”

    Mr. Vassilakos continued, “Our current operations provide the infrastructure to significantly scale revenues with a relatively modest increase in expenses. I continue to witness substantial progress within Eightco and believe our accomplishments provide a strong foundation to scale revenues rapidly. The demand for our inventory capital, especially in the refurbished apple products business, continues to underscore the value we believe we can bring to clients. We have now emerged from a transformative period, where I am confident in our ability to accelerate growth and drive sustained success for Eightco and our stakeholders.”

    Financial Highlights and Commentary

    Reallocation of capital back into the refurbished apple products business resulted in revenue growth. This also resulted in a reduction in gross margins from 8.2% for the first quarter of 2025, compared to 17.5% in the first quarter of 2024. The Company also saw a 28% decrease in selling, general and administrative expenses this quarter compared to the prior year quarter, which helped in improving operating losses of $1.4mn compared to a $3.2mn loss in the first quarter of 2024.

    • First quarter 2025 revenues of $9.9mn representing a 25% improvement on the first quarter 2024 revenue of $8.0mn
    • First quarter 2025 gross profit of $0.8mn compared to a gross profit $1.4mn in the first quarter of 2024
    • First quarter 2025 gross profit margin of 8.2%, compared to 17.5% in the first quarter of 2024, due to shift in product mix back into cell phones
    • A 55% improvement in operating losses, down to a $1.4mn loss in the first quarter of 2025, compared to a $3.2mn loss in the first quarter of 2024
    • First quarter 2025 SG&A of $2.2mn, down 29% from $3.1mn in the first quarter of 2024, as a result of continued streamlining and operating costs reduction across all areas of the business
    • First quarter 2025 net loss of $2.5mn compared to a net income of $1.9mn in the first quarter of 2024
    • First quarter 2025 Adjusted EBITDA loss from continuing operations of $0.8mn, compared to Adjusted EBITDA loss from continuing operations of $1.2mn for the first quarter of 2024
        For the Three Months Ended
        March 31,
        2025     2024  
    Revenues, net   9,913,987     7,958,697  
    Cost of revenues   9,100,728     6,569,687  
    Gross profit   813,259     1,389,010  
             
    Operating expenses:        
    Selling, general and administrative expenses   2,229,425     3,127,943  
    Restructuring and severance       1,414,838  
    Total operating expenses   2,229,425     4,542,781  
    Operating loss   -1,416,166     -3,153,771  
             
    Non-operating income (expense):        
    Interest income (expense), net   -1,288,804     -1,198,771  
    Gain on forgiveness of earnout       6,100,000  
    Other income   21,898     26,677  
    Total non-operating income (expense)   -1,266,906     4,927,906  
             
    Net income (loss) before income tax expense   -2,683,072     1,774,135  
             
    Income tax expense (benefit)   -28,793      
             
    Net income (loss) from continuing operations   -2,654,279     1,774,135  
    Net income from discontinued operations, net of tax   105,553     166,828  
    Net income (loss)   -2,548,725     1,940,963  
    Net loss attributable to non-controlling interest       -12  
    Net income (loss) attributable to Eightco Holdings Inc.   -2,548,725     1,940,975  
             
             
        For the Three Months Ended
        March 31,
        2025     2024  
    Net income (loss)   (2,654,279 )   1,774,135  
    Interest (income) expense, net   1,288,804     1,198,771  
    Gain on forgiveness of interest        
    Income tax expense   -28,793      
    Depreciation and amortization   574,642     556,299  
    EBITDA   (819,626 )   3,529,205  
    Stock-based compensation   0     0  
    Loss on issuance of warrants        
    Restructuring       1,414,838  
    Gain on extinguishment of liabilities       -6,100,000  
    Adjusted EBITDA   (819,626 )   (1,155,957 )


    Reconciliation of EBITDA and Adjusted EBITDA

    EBITDA and Adjusted EBITDA are non-GAAP performance measures. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that are not directly related to the Company’s core operating performance. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP.

    Reconciliations of the non-GAAP measures used in this press release are included in the table below. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results.

    A reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G as above.

    About Eightco

    Eightco (NASDAQ: OCTO) is committed to growth of its subsidiaries, made up of Forever 8, an inventory capital and management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the Company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.

    For additional information, please visit www.8co.holdings

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “expand,” “advance,” “develop” “believes,” “guidance,” “target,” “may,” “remain,” “project,” “outlook,” “intend,” “estimate,” “could,” “should,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco’s ability to maintain compliance with the Nasdaq’s continued listing requirements; unexpected costs, charges or expenses that reduce Eightco’s capital resources; Eightco’s inability to raise adequate capital to fund its business; Eightco’s inability to innovate and attract users for Eightco’s products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco’s actual results to differ from those contained in forward-looking statements, see Eightco’s filings with the Securities and Exchange Commission (the “SEC”), including in its Annual Report on Form 10-K filed with the SEC on April 15, 2025. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.

    For further information, please contact:
    Investor Relations
    investors@8co.holdings

    The MIL Network

  • MIL-OSI: Onfolio Holdings Inc. Announces First Quarter 2025 Financial Results and Provides Corporate Update

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Del., May 16, 2025 (GLOBE NEWSWIRE) — Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW) (OTC: ONFOP) (“Onfolio” or the “Company”), a company that primarily acquires and manages a portfolio of digital marketing and online education businesses, announces financial results for the first quarter ended March 31st 2025.

    Financial Highlights

    • First quarter revenue increased 77% to $2.81M vs. $1.58M in the prior year period and increased 12.8% from $2.49M in Q4 of 2024
    • First quarter gross profit increased 70% to $1.7M vs. $1M in the prior year period and increased 28% from $1.32M in Q4 of 2024
    • First quarter total operating expenses increased 71% to $2.49M vs. $1.45M in the prior year period and increased 23% from $2.01M in Q4 of 2024
    • First quarter net loss increased 72% to $0.80M vs. $0.47M in the prior year period and vs. a $0.14M gain in Q4 of 2024
    • Cash at 3/31/25 was $0.67M vs. $0.48M at 12/31/24

    “We substantially increased our revenue and gross profit during the first quarter of 2025. Our cash used in operations decreased to $0.14M, reflecting improvements in both operational discipline and revenue contribution,” said Onfolio Holdings CEO Dominic Wells.

    “While our net loss increased from $0.47M in Q1 2024, to $0.80M in Q1 2025, $0.27M of this was stock-based-compensation, most of which was a one-time expense, as well as $0.17M in higher amortization expense compared to the prior year. Taking these non-cash increases into account, our net loss improved year-on-year. During the first quarter of 2025, we continued our effort to improve operations within our portfolio companies, which has resulted in reduced cost, better efficiency, a renewed focus on organic growth and the development of new services.

    “During the first quarter of 2025, we also raised non-dilutive capital through the sale of our Series A Preferred Shares, which have consistently paid a 12% annual dividend for over four years. The additional capital was primarily used to strengthen our balance sheet and prepare for our next acquisition.

    “We remain highly focused on continued organic growth within our core digital marketing and online education business units and are pursuing strategic acquisitions to strengthen those businesses.

    “If we continue to execute well on our organic and strategic growth initiatives, we could achieve profitability during the second half of 2025,” concluded Dominic Wells.

    About Onfolio Holdings

    Onfolio Holdings acquires controlling interests in and actively manage small online businesses that we believe (i) operate in sectors with long-term growth opportunities, (ii) have positive and stable cash flows, (iii) face minimal threats of technological or competitive obsolescence and (iv) can be managed by our existing team or have strong management teams largely in place. Through the acquisition and growth of a diversified group of online businesses with these characteristics, we believe we offer investors in our shares an opportunity to diversify their own portfolio risk. Visit www.onfolio.com for more information.

    Forward-Looking Statements

    The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words “may” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continues,” “estimates,” “projects,” “intends,” and similar expressions. Examples of forward-looking statements include, among others, statements we make regarding expected operating results, such as revenue growth and earnings, and strategy for growth and financial results.

    Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1A “Risk Factors” in our most recent Form 10-K and 10Q; other risks to which our Company is subject; other factors beyond the Company’s control. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

    Onfolio Holdings, Inc.
    Consolidated Balance Sheets
     
          March 31       December 31  
          2025       2024  
                     
    Assets                
    Current Assets:                
    Cash   $ 666,115     $ 476,874  
    Accounts receivable, net     688,763       755,804  
    Inventory     47,027       65,876  
    Prepaids and other current assets     200,763       138,007  
    Total Current Assets     1,602,668       1,436,561  
                     
    Intangible assets     3,022,099       3,323,211  
    Goodwill     4,203,145       4,210,557  
    Fixed Assets     4,707       5,135  
    Due from related party     128,385       126,530  
    Investment in unconsolidated joint ventures, cost method     213,007       213,007  
    Investment in unconsolidated joint ventures, equity method     269,140       268,231  
    Other assets     3,495       9,465  
                     
    Total Assets   $ 9,446,646     $ 9,592,697  
    Liabilities and Stockholders Equity                
                     
    Current Liabilities:                
    Accounts payable and other current liabilities   $ 1,018,752     $ 969,068  
    Dividends payable     105,468       100,797  
    Notes payable, current     526,010       702,634  
    Notes Payable – Related Party, current           400,000  
    Contingent consideration     308,943       981,591  
    Deferred revenue     654,971       589,913  
    Total Current Liabilities     2,614,144       3,744,003  
                     
    Notes payable     790,000       450,000  
    Notes payable – related parties     1,049,000       1,049,000  
    Due to joint ventures – long term            
    Total Liabilities     4,453,144       5,243,003  
                     
    Commitments and Contingencies                
                     
    Stockholders’ Equity:                
    Preferred stock, $0.001 per value, 5,000,000 shares authorized                
    Series A Preferred stock, $0.001 par value, 1,000,000 shares authorized, 165,260 and 134,460 issued and outstanding at March 31, 2025 and December 31, 2024     165       134  
    Common stock, $0.001 par value, 50,000,000 shares authorized, 5,127,395 issued and outstanding at March 31, 2025 December 31, 2024     5,128       5,128  
    Additional paid-in capital     23,459,650       22,316,751  
    Accumulated other comprehensive income     97,152       68,105  
    Accumulated deficit     (19,976,595 )     (19,078,287 )
    Total Onfolio Inc. stockholders equity     3,585,500       3,311,831  
    Non-Controlling Interests     1,408,002       1,037,863  
    Total Stockholders’ Equity     4,993,502       4,349,694  
                     
    Total Liabilities and Stockholders’ Equity   $ 9,446,646     $ 9,592,697  
                     
    The accompanying notes are an integral part of these consolidated financial statements  
       
    Onfolio Holdings, Inc.
    Consolidated Statements of Operations
     
             
        For the Three Months Ended March 31,
        2025   2024
             
             
    Revenue, services   $ 1,796,595     $ 723,551  
    Revenue, product sales     1,015,348       863,351  
    Total Revenue     2,811,943       1,586,902  
                     
    Cost of revenue, services     1,016,860       366,706  
    Cost of revenue, product sales     87,963       215,860  
    Total cost of revenue     1,104,823       582,566  
                     
    Gross profit     1,707,120       1,004,336  
                     
    Operating expenses                
    Selling, general and administrative     2,221,346       1,185,184  
    Professional fees     237,905       180,190  
    Acquisition costs     33,410       94,341  
    Impairment of goodwill and intangible assets            
    Total operating expenses     2,492,661       1,459,715  
                     
    Loss from operations     (785,541 )     (455,379 )
                     
    Other income (expense)                
    Equity method income (loss)     909       (5,154 )
    Dividend income     2,250        
    Interest income (expense), net     (100,720 )     (17,720 )
    Other income     4,983       427  
    Gain on change in fair value of contingent consideration     54,173        
    Impairment of investments            
    Gain on sale of business            
    Total other income     (38,405 )     (22,447 )
                     
    Loss before income taxes     (823,946 )     (477,826 )
                     
    Income tax (provision) benefit     17,518        
                     
    Net loss     (806,428 )     (477,826 )
                     
    Net loss attributable to noncontrolling interest     12,041       664  
    Net loss attributable to Onfolio Holdings Inc.     (794,387 )     (477,162 )
                     
    Preferred Dividends     (103,921 )     (81,645 )
    Net loss to common shareholders   $ (898,308 )   $ (558,807 )
                     
    Net loss per common shareholder                
    Basic and diluted   $ (0.18 )   $ (0.11 )
                     
    Weighted average shares outstanding                
    Basic and diluted     5,127,395       5,107,395  
                     
    The accompanying notes are an integral part of these consolidated financial statements  
       
    Onfolio Holdings, Inc.
    Consolidated Statements of Stockholders’ Equity
    For the Three Months Ended March 31, 2025 and 2024
     
        Preferred Stock,
    $0.001 Par value
      Common Stock,
    $0.001 Par Value
       Additional    Accumulated   Accumulated
    Other
       Non    Stockholders’ 
        Shares   Amount   Shares   Amount   Paid-In Capital   Deficit   Comprehensive
    Income
      Controlling
    Interest
      Equity
                                         
    Balance, December 31, 2024     134,460     $ 134       5,127,395     $ 5,128     $ 22,316,751     $ (19,078,287 )   $ 68,105     $ 1,037,863     $ 4,349,694  
                                                                 
    Sale of preferred stock for cash     28,000       28                   699,972                         700,000  
    Preferred stock and common stock options issued for payment of contingent consideration     2,800       3                   169,997                         170,000  
    Stock-based compensation                             272,930                         272,930  
    Payment of note payble by NCI                                                             400,000       400,000  
    Preferred dividends                                   (103,921 )                 (103,921 )
    Foreign currency translation                                         29,047             29,047  
    Distribution to non-controlling interest                                                             (17,820 )     (17,820 )
    Net loss                                   (794,387 )           (12,041 )     (806,428 )
                                                                             
    Balance, March 31, 2025     165,260       165       5,127,395       5,128       23,459,650       (19,976,595 )     97,152       1,408,002       4,993,502  
                                                                             
    Balance, December 31, 2023     92,260       93       5,107,395       5,108       21,107,311       (16,957,854 )     182,465             4,337,123  
                                                                             
    Acquisition of Business     17,000       17                   484,983                   126,000       611,000  
    Sale of preferred stock for cash     400                         10,000                         10,000  
    Stock-based compensation                             17,887                         17,887  
    Preferred dividends                                   (81,645 )                 (81,645 )
    Foreign currency translation                                         (39,134 )             (39,134 )
    Distribution to non-controlling interest                                                      
    Net loss                                   (477,826 )           (664 )     (478,490 )
                                                                             
    Balance, March 31, 2024     109,660     $ 110       5,107,395     $ 5,108     $ 21,620,181     $ (17,517,325 )   $ 143,331     $ 125,336     $ 4,376,741  
                                                                             
    The accompanying notes are an integral part of these consolidated financial statements
     
    Onfolio Holdings, Inc.
    Consolidated Statements of Cash Flows
    For the Three Months Ended March 31, 2025 and 2024
     
             
          2025       2024  
                     
    Cash Flows from Operating Activities                
    Net loss   $ (806,428 )   $ (477,826 )
    Adjustments to reconcile net loss to net cash provided by operating activities:                
    Stock-based compensation expense     272,930       17,887  
    Equity method loss (income)     (909 )     5,154  
    Dividends received from equity method investment            
    Amortization of intangible assets     301,112       125,219  
    Depreciation expense     428          
    Impairment of intangible assets            
    Change in FV of contingent consideration     (54,173 )      
    Net change in:                
    Accounts receivable     67,041       (33,681 )
    Inventory     18,849       117  
    Prepaids and other current assets     (56,786 )     (81,328 )
    Accounts payable and other current liabilities     49,684       (33,390 )
    Due to joint ventures     (1,855 )     3,557  
    Deferred revenue     65,058       34,284  
    Due to related parties           9,000  
                     
    Net cash used in operating activities     (145,049 )     (431,007 )
                     
    Cash Flows from Investing Activities                
    Cash paid to acquire businesses           (240,000 )
    Investments in unconsolidated entities           (10,000 )
    Investment in cryptocurrency            
    Net cash used in investing activities           (250,000 )
                     
    Cash Flows from Financing Activities                
    Proceeds from sale of Series A preferred stock     700,000       10,000  
    Proceeds from exercise of stock options            
    Payments of preferred dividends     (99,250 )     (70,122 )
    Distributions to non-controlling interest holders     (17,820 )      
    Proceeds from notes payable           350,000  
    Payments on note payables     (176,624 )     (25,743 )
    Payments on acquisition note payables            
    Proceeds from notes payable – related parties            
    Payments on note payables – related parties            
    Payments on contingent consideration     (108,475 )      
                     
    Net cash provided by financing activities     297,831       264,135  
                     
    Effect of foreign currency translation     36,459       (35,612 )
                     
    Net Change in Cash     189,241       (452,484 )
    Cash, Beginning of  Period     476,874       982,261  
                     
    Cash, End of Period     666,115     $ 529,777  
                     
    Cash Paid For:                
    Income Taxes   $     $  
    Interest   $ 100,720     $ 18,360  
                     
    Non-cash transactions:                
    Preferred dividends accrued   $ 103,921     $ 81,645  
    Notes payable issued for asset acquisitions   $     $ 440,000  
    Preferred stock issued for acquisitions   $     $ 425,000  
    Settlement of contingent consideration   $ 510,000     $  
    Non-controlling interest issued for settlement of note payable   $ 400,000     $  
                     
    The accompanying notes are an integral part of these consolidated financial statements         

    The MIL Network

  • MIL-OSI: Security National Financial Corporation Reports Financial Results for the Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    SALT LAKE CITY, May 16, 2025 (GLOBE NEWSWIRE) — Security National Financial Corporation (SNFC) (NASDAQ symbol “SNFCA”) announced financial results for the quarter ended March 31, 2025.

    For the three months ending March 31, 2025, SNFC’s after tax earnings decreased approximately 42%, or $3.1MM, from $7,475,000 in 2024 to $4,338,000 in 2025. Pre Tax earnings decreased approximately 42%, or $4.05MM, to $5.571MM (please see the table below).

    Scott Quist, Chairman of the Board, President, and Chief Executive Officer of SNFC, said, “A decrease in quarterly income is never our goal and falls below our self-set standards. Despite the decrease in net income, I believe that as a Company we performed operationally pretty well. Our Insurance Segment had its second best Q1 out of the last 5 years and our Death Care Segment had its 3rd best Q1 out of the last 5 years, which time period, it is important to note, includes the pandemic. Speaking now of our decrease in net income, of the approximate $4.05MM decrease in pretax quarterly income (see the table below), about 75%, or roughly $3MM, is attributable to decreases in both our realized and unrealized investment income. Our investment income can be, and is, “lumpy” between quarters and years, primarily due to its close relationship to real estate activities (home closings/lot sales) and secondarily to public equity markets.

    Speaking to our $3MM decline in investment income, and referring to that portion directly related to real estate activities, roughly 56%, or $1.7MM, is related to decreased construction profits and decreased gains on the sale of residential lots from our builder relationships. We simply participated in fewer home closings in Q1 2025 than in Q1 2024. I believe it is fair to say that in Q1 2025 the builders with whom we have profit-sharing relationships had more homes in the process of being built, but fewer closings. Margins appear to be consistent with 2024’s experience, but margins are always in issue until a home sale closes. Lastly, as a general real estate market comment, housing inventories and “days on market” appear to have increased, but not to a degree that causes alarm.

    Roughly 42%, or $1.25MM of our $3MM investment income decline, is due to stock market declines in Q1. Generally speaking, we have chosen to not liquidate our positions, so the aforementioned loss is simply a recognized, but unrealized, stock market loss as of March 31, 2025.

    Roughly $900K, or 22%, of the $4.05MM decrease in pretax income is related to an increase in our bad debt expense as prescribed by the adoption of CECL (Current Expected Credit Losses) in Q1 2024. Arguments can be credibly made that this accounting rule is simply another element of our investment income. In my view, CECL is a very formulaic and forward-looking calculation that places a heavier weight on outside factors at the time an asset is acquired and less weight on the company’s experience over the course of time. Time will tell if the Company’s allowances are appropriate, but in my view CECL did change, and does have the potential to further change in the future, the Company’s bad debt allowances based on factors that are outside of its control.

    After accounting for the investment income and related decreases, the remaining elements causing the decrease in income are smaller in net impact and are much more numerous and nuanced. One element that probably merits comment is Personnel Costs. Personnel Costs rose 11.7%, or roughly $2.2MM, over 2024. Roughly speaking 5 percentage points of that increase relates to general annual compensation increases for both staff and management. We find it important to remain marketplace competitive in our compensation or our experienced staff are recruited away from us. The remaining increase relates to increased staffing, pretty much across all levels. We are constantly reviewing operational costs to ensure that we remain operationally efficient, but the majority of this increase represents very deliberate strategic hirings of high-quality, high-performing individuals to augment our sales and fulfillment staffs where we determined that we needed greater capability to reach our growth goals. Growth is expensive but is nevertheless our constant goal. We believe these increased Personnel Costs to be necessary investments which will yield returns in the years to come.

    Despite the decrease in income, many accomplishments were made in the first quarter. In our Death Care Segment we increased families served by 4%, in what we believe to be a flat to declining mortality climate. In our Insurance Segment we have improved our premium margin by several percentage points, reflecting the increased premium rates we have been implementing over the last several years. The full effect of those margin increases will not be apparent for several years hence. In our Mortgage Segment we increased volume by 11% in Q1 2025 over Q1 2024, with an improved mix of products. Importantly, our Mortgage Segment was both profitable and cash flow positive in March.”

    SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended March 31, 2025, as compared to 2024, for each business segment:

      Revenues   Earnings before Taxes
       2025    2024         2025       2024      
    Life Insurance $ 49,287,000   $ 49,971,000   (1.4%)   $ 5,327,000     $ 8,530,000     (37.5%)
                           
    Cemeteries/Mortuaries $ 8,119,000   $ 8,787,000   (7.6%)   $ 2,238,000     $ 3,053,000     (26.7%)
                           
    Mortgages $ 25,334,000   $ 22,430,000   12.9%   $ (1,994,000 )   $ (1,964,000 )   (1.5%)
                           
    Total $ 82,740,000   $ 81,188,000   1.9%   $ 5,571,000     $ 9,619,000     (42.1%)
                           

    Net earnings per common share was $.18 for the three months ended March 31, 2025, compared to net earnings of $.31 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $14.68 as of March 31, 2025, compared to $14.45 as of December 31, 2024.

    The Company has two classes of common stock outstanding, Class A and Class C. There were 23,601,718 Class A equivalent shares outstanding as of March 31, 2025.

    This press release contains statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Security National Financial Corporation and its business. The predictions in the statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.

    If there are any questions, please contact Mr. Garrett S. Sill or Mr. Scott M. Quist at:

    Security National Financial Corporation
    P.O. Box 57250
    Salt Lake City, Utah 84157
    Phone (801) 264-1060
    Fax (801) 265-9882

    The MIL Network

  • MIL-OSI: NextNRG Reports Preliminary April 2025 Revenues up 154% Year-over-Year

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, May 16, 2025 (GLOBE NEWSWIRE) — NextNRG, Inc. (Nasdaq: NXXT), a pioneer in AI-driven energy innovation—transforming how energy is produced, managed and delivered through its advanced Utility Operating System, smart microgrid technology, wireless EV charging and on-demand mobile fuel delivery solutions— today announced preliminary unaudited financial results for April 2025.

    April 2025 Highlights:

    • Revenue: $5.82 million, up 154% year-over-year
    • Gallons Delivered: 1.78 million, up 207% year-over-year

    April marks another strong month of growth, supported by sustained volume increases and recent expansion into Oklahoma, alongside rising demand from national fleet clients using NextNRG’s on-demand fueling platform.

    “Our April performance further validates the strength of our business model and execution strategy,” said Michael D. Farkas, Executive Chairman and CEO of NextNRG. “With year-over-year revenues more than doubling, we are seeing growing demand from national fleet operators who value the reliability, efficiency and sustainability of our smart fueling solutions. We’re not just delivering fuel, we’re laying the groundwork for a cleaner energy future. As we prepare to scale our Next Utility Operating System, our AI-powered microgrid systems, and wireless EV charging products, April’s results reflect our ability to grow rapidly while staying focused on operational efficiency and long-term value creation.”

    Note on Preliminary Results
    The financial results for April 2025 are preliminary and unaudited. Final results may differ and will be confirmed upon the completion of standard month-end and quarter-end closing procedures.

    About NextNRG, Inc.
    NextNRG, Inc. (NextNRG) is Powering What’s Next by implementing artificial intelligence (AI) and machine learning (ML) into renewable energy, next-generation energy infrastructure, battery storage, wireless electric vehicle (EV) charging and on-demand mobile fuel delivery to create an integrated ecosystem.

    At the core of NextNRG’s strategy is its Utility Operating System, which leverages AI and ML to help make existing utilities’ energy management as efficient as possible, and the deployment of NextNRG smart microgrids, which utilize AI-driven energy management alongside solar power and battery storage to enhance energy efficiency, reduce costs and improve grid resiliency. These microgrids are designed to serve commercial properties, schools, hospitals, nursing homes, parking garages, rural and tribal lands, recreational facilities and government properties, expanding energy accessibility while supporting decarbonization initiatives.

    NextNRG continues to expand its growing fleet of fuel delivery trucks and national footprint, including the acquisition of Yoshi Mobility’s fuel division and Shell Oil’s trucks, further solidifying its position as a leader in the on-demand fueling industry. NextNRG is also integrating sustainable energy solutions into its mobile fueling operations. The company hopes to be an integral part of assisting its fleet customers in their transition to EV, supporting more efficient fuel delivery while advancing clean energy adoption. The transition process is expected to include the deployment of NextNRG’s innovative wireless EV charging solutions.

    To find out more, visit: www.nextnrg.com.

    Forward-Looking Statements
    This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement describing NextNRG’s goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as “expect,” “intends,” “will,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including, but not limited to, those related to NextNRG’s business and macroeconomic and geopolitical events. These and other risks are described in NextNRG’s filings with the Securities and Exchange Commission from time to time. NextNRG’s forward-looking statements involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although NextNRG’s forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by NextNRG. Except as required by law, NextNRG undertakes no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements.

    Investor Relations Contact
    NextNRG, Inc.
    Sharon Cohen
    SCohen@nextnrg.com

    The MIL Network

  • MIL-OSI: reAlpha Tech Corp. Announces 4,432% Year-over-Year Revenue Growth for Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    DUBLIN, Ohio, May 16, 2025 (GLOBE NEWSWIRE) — reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), a real estate technology company developing and commercializing artificial intelligence (“AI”) technologies, today announced financial results for the quarter ended March 31, 2025.

    Financial Highlights:

    • Revenue increased 4,432% to $925,635 in the first quarter of 2025, compared to $20,426 in the first quarter of 2024.
    • Cash was approximately $1.2 million as of the first quarter of 2025, compared to $3.1 million in the first quarter of 2024.
    • Net loss was approximately $2.85 million in the first quarter of 2025, compared to a net loss of approximately $1.41 million in the first quarter of 2024, which increase in net loss was mainly due to increased operating expenses resulting from the integration of the Company’s recent acquisitions. While the Company reported a higher net loss year-over-year, the net profit margin increased from approximately (6,947)% to (309)% year-over-year, due to increased operating efficiency across the business and integration of recent acquisitions.
    • Adjusted EBITDA was approximately $(1.96) million in the first quarter of 2025, compared to approximately $(1.34) million in the first quarter of 2024.

    Piyush Phadke, Chief Financial Officer of reAlpha, commented, “Our progress in the first quarter of 2025 is a definite step in the right direction and further corroborates the positive trend in revenue growth and EBITDA margins reflected in our 2024 annual report.” He further added, “We believe that by combining AI-driven technology with strategic acquisitions in real estate services, we have driven strong revenue growth and are building a scalable platform aimed at making homeownership more affordable. We intend to carry this momentum forward throughout the year.”

    Business Highlights

    • Launched several tools to enhance operational efficiency and customer experience, including the rollout of a comprehensive internal lead tracking system and the launch of a new public-facing website for Be My Neighbor, one of the Company’s subsidiaries.
    • Appointed Piyush Phadke as Chief Financial Officer and Vijay Rathna as Chief Crypto Officer.
    • Announced the acquisition of GTG Financial, Inc. (“GTG”), a mortgage brokerage founded by a U.S. marine in 2017 and licensed in seven U.S. states. GTG’s acquisition complements the Company’s acquisition of Be My Neighbor in 2024 and highlights the Company’s focus on the mortgage brokerage market. From the date of acquisition to the end of the first quarter of 2025, GTG contributed to originating 36 mortgages for a total loan volume of approximately $22.4 million since its acquisition by the Company in the first quarter of 2025.
    • Secured a $5 million media-for-equity investment from Mercurius Media Capital LP on March 10, 2025, which is providing the Company with access to significant marketing exposure while preserving cash. One of the active campaigns is promoting the reAlpha platform on Willow TV across all 50 U.S. states.

    About reAlpha Tech Corp.

    reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company transforming the multi-trillion dollar U.S. real estate services market. reAlpha is developing an end-to-end platform that streamlines the homebuying journey, including real estate brokerage, mortgage and title services. With a strategic, acquisition-driven growth model and a proprietary AI infrastructure, reAlpha is building a vertically integrated ecosystem designed to deliver a streamlined and more affordable path to homeownership. For more information, visit www.realpha.com.

    Forward-Looking Statements

    The information in this press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein, including statements relating to acquisitions, business strategy and plans, objectives of management for future operations of reAlpha, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha’s ability to pay contractual obligations; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability to commercialize its developing AI-based technologies; reAlpha’s ability to successfully enter new geographic markets; reAlpha’s ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies’ services; reAlpha’s ability to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings against reAlpha; reAlpha’s ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha’s ability to successfully identify and acquire companies that are complementary to its business model; reAlpha’s ability to commercialize its developing AI-based technologies; the inability to maintain and strengthen reAlpha’s brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for short-term rentals and AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability of reAlpha’s customers to pay for reAlpha’s services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s U.S. Securities and Exchange Commission (“SEC”) filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

    Investor Relations Contact:

    Adele Carey, VP of Investor Relations
    investorrelations@realpha.com

    Media Contact:

    Cristol Rippe, Chief Marketing Officer
    media@realpha.com

     
    reAlpha Tech Corp. and Subsidiaries
    Condensed Consolidated Balance Sheet
    March 31, 2025 (Unaudited) and December 31, 2024
                 
        March 31,
    2025
        December 31,
    2024
     
    ASSETS   (unaudited)        
                 
    Current Assets            
    Cash   $ 1,204,400     $ 3,123,530  
    Accounts receivable, net     164,693       182,425  
    Receivable from related parties     7,408       12,873  
    Prepaid expenses     5,183,968       180,158  
    Current assets of discontinued operations     56,931       56,931  
    Other current assets     278,422       487,181  
    Total current assets     6,895,822       4,043,098  
                     
    Property and equipment, net     101,407       102,638  
                     
    Other Assets                
    Investments     214,128       215,000  
    Other long term assets     954,000       31,250  
    Intangible assets, net     3,256,713       3,285,406  
    Goodwill     7,010,689       4,211,166  
    Capitalized software development – work in progress     105,900       105,900  
    TOTAL ASSETS   $ 18,538,659     $ 11,994,458  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                
                     
    Current Liabilities                
    Accounts payable   $ 940,896     $ 655,765  
    Related party payables     9,380       9,287  
    Short term loans – related parties -current portion     245,292       261,986  
    Short term loans – unrelated parties -current portion     449,622       519,153  
    Note payable, current-net of discount     5,010,627        
    Accrued expenses     994,728       1,164,813  
    Deferred liabilities, current portion     4,191,060       1,534,433  
    Total current liabilities     11,841,605       4,145,437  
                     
    Long-Term Liabilities                
    Embedded Derivate Liability     4,327,930        
    Preferred stock liability     957,177          
    Other long term loans – related parties – net of current portion     27,131       45,052  
    Other long term loans – unrelated parties – net of current portion     217,036       241,121  
    Note payable, net of discount           4,909,376  
    Other long term liabilities     2,133,000       1,086,000  
    Total liabilities     19,503,879       10,426,986  
                     
    Stockholders’ Equity (Deficit)                
    Series A Convertible Preferred Stock  ($0.001 par value; 5,000,000 shares authorized) 1,000,000 shares designated; 264,063 and 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively            
    Common stock ($0.001 par value; 200,000,000 shares authorized, 46,230,934 shares outstanding as of March 31, 2025; 200,000,000 shares authorized, 45,864,503 shares outstanding as of December 31, 2024)     46,230       45,865  
    Additional paid-in capital     40,099,285       39,770,060  
    Accumulated deficit     (41,110,855 )     (38,260,913 )
    Accumulated other comprehensive income     (6,920 )     5,011  
    Total stockholders’  (deficit) equity of reAlpha Tech Corp.     (972,260 )     1,560,023  
                     
    Non-controlling interests in consolidated entities     7,040       7,449  
    Total stockholders’ (deficit) equity     (965,220 )     1,567,472  
    TOTAL LIABILITIES AND STOCKOLDERS’ (DEFICIT) EQUITY   $ 18,538,659     $ 11,994,458  
                     
     
    reAlpha Tech Corp. and Subsidiaries
    Condensed Consolidated Statements of Operations and Comprehensive Loss
    For the Three Ended March 31, 2025 and 2024 (unaudited)
               
      For the Three
    Months Ended
        For the Three
    Months Ended
     
      March 31,
    2025
        March 31,
    2024
     
               
    Revenues $ 925,635     $ 20,426  
    Cost of revenues   406,968       18,249  
    Gross Profit   518,667       2,177  
                   
    Operating Expenses              
    Wages, benefits and payroll taxes   1,060,104       418,902  
    Repairs and maintenance   854       749  
    Utilities   5,213       1,663  
    Travel   60,991       46,964  
    Dues and subscriptions   52,232       12,113  
    Marketing and advertising   518,939       76,784  
    Professional and legal fees   742,159       468,725  
    Depreciation and amortization   179,149       71,453  
    Other operating expenses   321,284       211,482  
    Total operating expenses   2,940,925       1,308,835  
                   
    Operating Loss   (2,422,258 )     (1,306,658 )
                   
    Other Expense (income)              
    Changes in fair value of contingent consideration   93,000        
    Interest expense, net   205,247       10,445  
    Other expense, net   129,846       101,103  
    Total other expense   428,093       111,548  
                   
    Net Loss from continuing operations before income taxes   (2,850,531 )     (1,418,206 )
                   
    Net Loss from continuing operations   (2,850,351 )     (1,418,206 )
                   
    Discontinued operations (Roost and Rhove)              
    Loss from operations of discontinued Operations         (839 )
    Loss on discontinued operations         (839 )
                   
    Net Loss $ (2,850,351 )   $ (1,419,045 )
                   
    Less: Net Loss Attributable to Non-Controlling Interests   (409 )     (65 )
                   
    Net Loss Attributable to Controlling Interests $ (2,849,942 )   $ (1,418,980 )
                   
    Other comprehensive income              
    Foreign currency translation adjustments   (11,931 )      
     Total other comprehensive loss   (11,931 )      
                   
    Comprehensive Loss Attributable to Controlling Interests $ (2,861,873 )   $ (1,418,980 )
                   
    Basic loss per share              
    Continuing operations $ (0.06 )   $ (0.03 )
    Discontinued operations $     $ (0.00 )
    Net Loss per share — basic $ (0.06 )   $ (0.03 )
                   
    Diluted loss per share              
    Continuing operations $ (0.06 )   $ (0.03 )
    Discontinued operations $     $ (0.00 )
    Net Loss per share — diluted $ (0.06 )   $ (0.03 )
                   
    Weighted-average outstanding shares — basic   45,913,591       44,122,091  
                   
    Weighted-average outstanding shares — diluted   47,662,152       44,122,091  
                   
     
    reAlpha Tech Corp. and Subsidiaries
    Condensed Consolidated Statements of Cash Flows
    For the Three Months Ended March 31, 2025, and 2024 (unaudited)
               
      For the Three
    Months Ended
        For the Three
    Months Ended
     
      March 31,
    2025
        March 31,
    2024
     
    Cash Flows from Operating Activities:          
    Net Loss $ (2,850,351 )   $ (1,419,045 )
    Adjustments to reconcile net loss to net cash used in operating activities:              
    Depreciation and amortization   130,399       71,453  
    Amortization of loan discounts   121,251        
    Stock based compensation   78,355        
    Change in fair value of contingent consideration   93,000        
    Non cash Commitment fee expenses   125,000       125,000  
    Non cash Dividend payable on preferred stock   184        
    Gain on sale of properties         (31,378 )
    Loss from equity method investment   872        
    Changes in operating assets and liabilities              
    Accounts receivable   17,732       18,463  
    Receivable from related parties   5,465        
    Payable to related parties   93       9,800  
    Prepaid expenses   (3,810 )     25,492  
    Other current assets   (7,160 )     (1,788 )
    Accounts payable   184,803       (28,263 )
    Accrued expenses   (187,813 )     (296,972 )
    Deferred liabilities   24,877        
    Total adjustments   583,248       (108,193 )
    Net cash used in operating activities   (2,267,103 )     (1,527,238 )
                   
    Cash Flows from Investing Activities:              
    Additions to property and equipment   (13,665 )      
    Proceeds from sale of properties         78,000  
    Net Cash paid to acquire business   349,529        
    Cash used for additions to capitalized software   (91,310 )     (97,700 )
    Net cash provided by (used in) investing activities   244,554       (19,700 )
                   
    Cash Flows from Financing Activities:              
    Proceeds from issuance of debt – related parties   155,481        
    Payments of debt   (283,711 )     (71,286 )
    Proceeds from issuance of common stock   231,235        
     Net cash provided by (used in) financing activities   103,005       (71,286 )
                   
    Net decrease in cash   (1,919,544 )     (1,618,224 )
                   
                   
    Cash – Beginning of Period   3,123,944       6,456,370  
                   
    Cash – End of Period $ 1,204,400     $ 4,838,146  
                   
                   
                   

    Explanatory Notes on Use of Non-GAAP Financial Measures

    To supplement reAlpha’s financial information presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), reAlpha believes “Adjusted EBITDA,” a “non- U.S. GAAP financial measure”, as such term is defined under the rules of the SEC, is useful in evaluating reAlpha’s operating performance. reAlpha uses Adjusted EBITDA to evaluate reAlpha’s ongoing operations and for internal planning and forecasting purposes. reAlpha believes that Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance. However, Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in reAlpha’s industry, may calculate similarly titled non-U.S. GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of reAlpha’s non-U.S. GAAP financial measures as tools for comparison. A reconciliation is provided below for each non-U.S. GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non- U.S. GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate reAlpha’s business.

    We use Adjusted EBITDA, a non- U.S. GAAP financial measure, to evaluate our operating performance and facilitate comparisons across periods and with peer companies. We reconcile our Adjusted EBITDA to our net income (loss) adjusted to exclude interest expense, depreciation and amortization, share-based compensation, and other non-cash, non-operating, or non-recurring items that we believe are not indicative of our core business operations. We believe this measure provides useful insight into our ongoing performance; however, it should not be considered a substitute for, or superior to, net income or other financial information prepared in accordance with U.S. GAAP.

    The following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented below:

      For the Three Months
    Ended March 31,
     
      2025     2024  
    Net (Loss) Income $ (2,850,351 )   $ (1,419,045 )
    Adjusted to exclude the following              
    Depreciation and amortization   179,149       71,453  
    Changes in fair value of contingent consideration   93,000        
    Interest expense   205,247       10,445  
    Amortization of Loan Discounts and Origination Fee(1)   121,251        
    GEM commitment fee (2)   125,000        
    Share based compensation (3)   78,355        
    Acquisition-related expenses (4)   87,352        
    Adjusted EBITDA   (1,960,997 )     (1,337,147 )
    (1) Reflects the amortized original issue discount related to that certain secured promissory note issued to Streeterville Capital, LLC on August 14, 2024.
    (2) This pertains to the commitment fee of $1 million in connection with the equity facility we have in place with GEM Global Yield LLC and GEM Yield Bahamas Limited, which has been amortized over a period of 24 months.
    (3) Compensation provided to employees for services through share-based awards, which is recognized as a non-cash expense.
    (4) Expenses related to acquisitions, including professional and legal fees, which are excluded from U.S. GAAP financial measures to provide a clearer view of ongoing operational performance.
       

    The MIL Network

  • MIL-OSI: Codere Online Reports Financial Results for the First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    • Total revenue was €54.3 mm in Q1 2025, while net gaming revenue1 was €57.0 mm in the period, 8% above Q1 2024 (17% in constant currency terms).
    • Mexico revenue was €27.6 mm in Q1 2025, while net gaming revenue was €30.5 mm in the period, 15% above Q1 2024 (34% in constant currency terms).
    • Net loss was €0.7 mm in Q1 2025 versus a net income of €3.4 mm in Q1 2024.
    • Total cash position of €41.8 mm as of March 31, 2025.
    • Reiterating 2025 net gaming revenue outlook of €220-230 million and Adj. EBITDA2 outlook of €10-15 million.
    • Repurchased $0.5 million of the Company’s shares under the Company’s $5.0 million share buyback plan through May 15, 2025.

    Madrid, Spain and Tel Aviv, Israel, May 16, 2025 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, has released its preliminary unaudited3 financial results for the quarter ended March 31, 2025.

    Below are the main financial and operating metrics of the period.

      Quarter ended March 31
      2024 2025 Chg. %
           
    Net Gaming Revenue (EUR mm)1      
    Spain 22.3 21.9 (2%)
    Mexico 26.6 30.5 15%
    Other 4.1 4.5 10%
    Total 53.0 57.0 8%
           
    Avg. Monthly Active Players (000s)4      
    Spain 50.0 52.0 4%
    Mexico 62.5 82.0 31%
    Other 30.6 27.2 (11%)
    Total 143.2 161.3 13%

    Aviv Sher, CEO of Codere Online, stated, “We are off to a good start in 2025, with net gaming revenue reaching €57.0 million in the first quarter, an 8% increase compared to the same period last year. In Mexico, net gaming revenue grew 15% to €30.5 million, despite the 16% devaluation of the Mexican peso. Meanwhile, net gaming revenue in Spain was slightly below last year’s at €21.9 million.”

    Oscar Iglesias, CFO of Codere Online, commented, “We are very pleased with our performance in Mexico and the underlying trends in local currency. Also, our portfolio of active customers grew by an impressive 31% versus the prior year quarter which is quite encouraging”.

    Mr. Iglesias added, “Based on these results, we believe that we are on track to meet our net gaming revenue outlook of €220-230 million and Adj. EBITDA outlook of €10-15 million that we provided to investors earlier this year.”

    Recent Events

    Compliance with Nasdaq Listing Requirements

    • On May 1, 2025, the Company filed its 2023 annual report (ahead of the May 12th deadline) and on May 15th, Nasdaq informed the Company that it had regained compliance with applicable listing requirements.
    • The Company is actively working to complete the audit of its 2024 financial accounts and expects to file the 2024 annual report by the end of this month. However, as we did not file by May 15th (i.e. within the 15-day grace period provided for), we expect that a delisting notice from Nasdaq is forthcoming.
    • Upon receipt of said delisting notice, the Company will promptly request a hearing with the Nasdaq Hearings Panel and seek a stay of any trading suspension; however, the Company expects to file the 2024 annual report and regain compliance with Nasdaq requirements ahead of any hearing.

    Repurchases under the Share Buyback Plan

    • At a general meeting held on March 3, 2025, Codere Online shareholders authorized the repurchase of up to 1 million of the Company’s ordinary shares over a one-year period (for a total investment of up to $5.0 million, as approved by the Company’s Board of Directors).
    • The Company repurchased 68,384 shares at an average price of $6.63 under the authorized share buyback plan through May 15, 2025.

    Conference Call Information

    Codere Online’s management will host a conference call to discuss the results and provide a business update at 8:30 am US Eastern Time today, May 16, 2025. Dial-in details as well as the audio webcast and presentation will be accessible on Codere Online’s website at www.codereonline.com. A recording of the webcast will also be available following the conference call.

    Reconciliation of Revenue (IFRS) to Net Gaming Revenue (non-IFRS)

      Quarter ended March 31
    Figures in EUR mm 2024 2025 Chg. %
           
    Total      
           
    Revenue 50.4 54.3 4%
    (+) Accounting Adjustments5 2.6 2.6 69%
    Net Gaming Revenue 53.0 57.0 8%
           
    Spain      
           
    Revenue 22.3 21.9 (2%)
    (+) Accounting Adjustments5 n.m.
    Net Gaming Revenue 22.3 21.9 (2%)
           
    Mexico      
           
    Revenue 23.8 27.6 16%
    (+) Accounting Adjustments5 2.7 2.9 7%
    Net Gaming Revenue 26.6 30.5 15%
           
    Other      
           
    Revenue 4.3 4.8 (30%)
    (+) Accounting Adjustments5 (0.2) (0.3) n.m.
    Net Gaming Revenue 4.1 4.5 10%

    Reconciliation of Net Income (IFRS) to Adj. EBITDA (non-IFRS)6

      Quarter ended March 31
    Figures in EUR mm 2024 2025 Chg.
           
    Net Income (Loss) 3.4 (0.7) (3.4)
    (+/-) Provision for Corporate Income Tax 0.5 0.2 (0.1)
    (+/-) Interest Expense / (Income) (4.8) 1.1 5.8
    (+/-) Var. In Fair Value of Public Warrants 1.9 0.5 (1.4)
    (+) D&A 0.0 0.2 0.2
    EBITDA 0.9 1.3 1.1
    (+) Employee LTIP Expense 0.6 0.5 (0.6)
    (+/-) Other Accounting Adjustments 0.2 0.0 (0.4)
    Adj. EBITDA (Pre Non-Recurring Items) 1.7 1.8 0.1
    (+) Non-Recurring Items 0.0 0.0 0.0
    Adj. EBITDA 1.7 1.8 0.1

    About Codere Online

    Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online, launched in 2014 as part of the renowned casino operator Codere Group, offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere Online currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina; this online business is complemented by Codere Group’s physical presence in Spain and throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence.

    About Codere Group
    Codere Group is a multinational group devoted to entertainment and leisure. It is a leading player in the private gaming industry, with four decades of experience and with presence in seven countries in Europe (Spain and Italy) and Latin America (Argentina, Colombia, Mexico, Panama, and Uruguay).

    Note on Rounding. Due to decimal rounding, numbers presented throughout this report may not add up precisely to the totals and subtotals provided, and percentages may not precisely reflect the absolute figures.

    Forward-Looking Statements
    Certain statements in this document may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding Codere Online Luxembourg, S.A. and its subsidiaries (collectively, “Codere Online”) or Codere Online’s or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this document may include, for example, statements about Codere Online’s financial performance and, in particular, the potential evolution and distribution of its net gaming revenue; any prospective and illustrative financial information; and changes in Codere Online’s strategy, future operations and target addressable market, financial position, estimated revenues and losses, projected costs, prospects and plans as well as he Company’s expectations about the timing of completion and filing of the Form 20-F for the year ended December 31, 2024 (the “2024 Annual Report”), and statements related to the Company’s plan, timing and actions taken to regain compliance with the Listing Rule 5250(c)(1).

    These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing Codere Online’s or its management team’s views as of any subsequent date, and Codere Online does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

    As a result of a number of known and unknown risks and uncertainties, Codere Online’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that Codere Online does not presently know or that Codere Online currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Some factors that could cause actual results to differ include (i) changes in applicable laws or regulations, including online gaming, privacy, data use and data protection rules and regulations as well as consumers’ heightened expectations regarding proper safeguarding of their personal information, (ii) the impacts and ongoing uncertainties created by regulatory restrictions, changes in perceptions of the gaming industry, changes in policies and increased competition, and geopolitical events such as war, (iii) the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities, (iv) the risk of downturns and the possibility of rapid change in the highly competitive industry in which Codere Online operates, (v) the risk that Codere Online and its current and future collaborators are unable to successfully develop and commercialize Codere Online’s services, or experience significant delays in doing so, (vi) the risk that Codere Online may never achieve or sustain profitability, (vii) the risk that Codere Online will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all, (viii) the risk that Codere Online experiences difficulties in managing its growth and expanding operations, (ix) the risk that third-party providers, including the Codere Group, are not able to fully and timely meet their obligations, (x) the risk that the online gaming operations will not provide the expected benefits due to, among other things, the inability to obtain or maintain online gaming licenses in the anticipated time frame or at all, (xi) the risk that Codere Online is unable to secure or protect its intellectual property, (xii) the risk that Codere Online’s securities may be delisted from Nasdaq and (xiii) the possibility that Codere Online may be adversely affected by other political, economic, business, and/or competitive factors. Additional information concerning certain of these and other risk factors is contained in Codere Online’s filings with the U.S. Securities and Exchange Commission (the “SEC”). All subsequent written and oral forward-looking statements concerning Codere Online or other matters and attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

    Financial Information and Non-GAAP Financial Measures
    Codere Online’s financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), which can differ in certain significant respects from generally accepted accounting principles in the United States of America (“U.S. GAAP”).

    This document includes certain financial measures not presented in accordance with U.S. GAAP or IFRS (“non-GAAP”), such as, without limitation, net gaming revenue, Adjusted EBITDA and constant currency information. These non-GAAP financial measures are not measures of financial performance in accordance with U.S. GAAP or IFRS and may exclude items that are significant in understanding and assessing Codere Online’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under U.S. GAAP or IFRS. You should be aware that Codere Online’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. In addition, the audit of Codere Online’s financial statements in accordance with PCAOB standards, may impact how Codere Online currently calculates its non-GAAP financial measures, and we cannot assure you that there would not be differences, and such differences could be material.

    Codere Online believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing Codere Online’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Reconciliations of non-GAAP financial measures to their most directly comparable measure under IFRS are included herein.

    This document may include certain projections of non-GAAP financial measures. Codere Online is unable to quantify certain amounts that would be required to be included in the most directly comparable U.S. GAAP or IFRS financial measures without unreasonable effort, due to the inherent difficulty and variability of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such comparable measures or such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, ascertained or assessed, which could have a material impact on its future IFRS financial results. Consequently, no disclosure of estimated comparable U.S. GAAP or IFRS measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.

    Use of Projections
    This document contains financial forecasts with respect to Codere Online’s business and projected financial results, including net gaming revenue and adjusted EBITDA. Codere Online’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this document, and accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purpose of this document. These projections should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. See “Forward-Looking Statements” above. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of Codere Online or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this document should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved.

    For further information on the limitations and assumptions underlying these projections, please refer to Codere Online’s filings with the SEC.

    Preliminary Information
    This document contains figures, financial metrics, statistics and other information that is preliminary and subject to change (the “Preliminary Information”). The Preliminary Information has not been audited, reviewed, or compiled by any independent registered public accounting firm. This Preliminary Information is subject to ongoing review including, where applicable, by Codere Online’s independent auditors. Accordingly, no independent registered public accounting firm has expressed an opinion or any other form of assurance with respect to the Preliminary Information. During the course of finalizing such Preliminary Information, adjustments to such Preliminary Information presented herein may be identified, which may be material. Codere Online undertakes no obligation to update or revise the Preliminary Information set forth in this document as a result of new information, future events or otherwise, except as otherwise required by law. The Preliminary Information may differ from actual results. Therefore, you should not place undue reliance upon this Preliminary Information. The Preliminary Information is not a comprehensive statement of financial results, and should not be viewed as a substitute for full financial statements prepared in accordance with IFRS. In addition, the Preliminary Information is not necessarily indicative of the results to be achieved in any future period.

    No Offer or Solicitation
    This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities will be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

    Trademarks
    This document may contain trademarks, service marks, trade names and copyrights of Codere Online or other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this document may be listed without the TM, SM, © or ® symbols, but Codere Online will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights.

    Industry and Market Data
    In this document, Codere Online relies on and refers to certain information and statistics obtained from publicly available information and third-party sources, which it believes to be reliable. Codere Online has not independently verified the accuracy or completeness of any such publicly-available and third-party information, does not make any representation as to the accuracy or completeness of such data and does not undertake any obligation to update such data after the date of this document. You are cautioned not to give undue weight to such industry and market data.

    Contacts:

    Investors and Media
    Guillermo Lancha
    Director, Investor Relations and Communications
    Guillermo.Lancha@codere.com
    (+34) 628.928.152


    1 Net Gaming Revenue is a non-IFRS measure; please see reconciliation of Net Gaming Revenue to Revenue at the end of the report.

    2 Adjusted EBITDA is a non-IFRS measure; please see reconciliation of Adjusted EBITDA to Net Income at the end of the report. Net gaming revenue and Adjusted EBITDA outlooks are forward-looking non-IFRS measures; please see important disclaimers at the end of the report.
    3 See “Preliminary Information” below.        

    4 Average Monthly Active Players include real money (i.e. exclude free bets) sports betting and casino actives.

    5 Figures primarily reflect differences in recognition of revenue related to certain partner and affiliate agreements in place in Colombia, VAT impact from entry fees in Mexico and the impact from the application of inflation accounting (IAS 29) in Argentina.

    6 Please refer to page 26 of our Q1 2025 Earnings Presentation for further details regarding this reconciliation.

    The MIL Network

  • MIL-OSI USA: Governor Newsom proclaims Small Business Month 2025

    Source: US State of California 2

    May 15, 2025

    Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring May 2025 as “Small Business Month.”

    The text of the proclamation and a copy can be found below:

    PROCLAMATION

    California’s more than 4.2 million small businesses – the most of any state – embody the entrepreneurial spirit that drives the economy of the Golden State. Small businesses and entrepreneurs accelerate economic growth and mobility in California, building wealth, innovating to solve global problems, launching future growth industries, and supporting local communities.

    California’s small businesses account for more than 99.9% of total businesses in the state and employ nearly half of the state’s private sector workforce. Our state leads the nation in business startups, and our businesses received more than 55% of the nation’s venture capital in 2024.

    California businesses produce more patents per capita and conduct more research and development than any other state in the nation. Our state leads the nation in high-tech industries, agriculture, and manufacturing output in the U.S. We exceed the national rate of manufacturing output by 83% since the late 1990s. Our manufacturing firms have created new industries and supply the world with manufactured goods spanning aerospace, computers, electronics, and zero-emission vehicles.

    The state is committed to nurturing small businesses. AB 2019 codified the state’s procurement spending goal of 25% to small businesses, while the Small Business Technical Assistance Program helps businesses and entrepreneurs start, grow, and become more resilient. Through the state’s Accelerate California Inclusive Innovation Hubs, we’re working to expand and diversify the innovation economy by improving access to resources in underserved communities, supporting emerging tech sectors, and catalyzing the creation of high-quality jobs in every corner of the state.

    California’s economy – the fourth largest in the world – is not confined to our borders. More than 60,000 small businesses in California export to countries around the world. For our economy to maintain its strength, we must ensure that all Californians – no matter who they are or where they come from – can pursue their dreams to start, manage, and grow resilient businesses in the Golden State. To protect our small businesses, California is acting to stop unlawful tariffs that are hurting American businesses and families.

    Our small businesses are global leaders in innovation and economic competitiveness and have helped make our economy the envy of the world. This month, we recognize the tremendous contributions of our small businesses, as well as the importance of our ongoing work to support their success and make the California Dream accessible to all.

    NOW THEREFORE I, GAVIN NEWSOM, Governor of the State of California, do hereby proclaim May 2025 as “Small Business Month.”

    IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 15th day of May 2025.

    GAVIN NEWSOM
    Governor of California

    ATTEST:
    SHIRLEY N. WEBER, Ph.D.
    Secretary of State

    Recent news

    News Sacramento, California — Governor Gavin Newsom today condemned U.S. Health and Human Services Secretary Robert F. Kennedy Jr. for calling on the Federal Drug Administration (FDA) to conduct a “complete review” of mifepristone — the safe, effective, and…

    News “We’re done with barriers. Let’s get this built.” What you need to know: Governor Newsom’s proposed budget includes proposals to streamline permitting and accelerate development  —- clearing the path for more housing and economic opportunity.  SACRAMENTO –…

    News Tax cut for military retireesUniversal pre-kindergarten for all Expanded before school, after school, & summer schoolFree school meals for all kids Boosting literacy & readingBuilding more housing, ASAPMore water for CaliforniansLowering drug…

    MIL OSI USA News

  • MIL-OSI USA: Governor Newsom slams RFK Jr.’s plan to target abortion access with bogus “review” of safe, legal abortion medication

    Source: US State of California 2

    May 15, 2025

    Sacramento, California — Governor Gavin Newsom today condemned U.S. Health and Human Services Secretary Robert F. Kennedy Jr. for calling on the Federal Drug Administration (FDA) to conduct a “complete review” of mifepristone — the safe, effective, and FDA-approved abortion medication used in more than 60% of abortions nationwide.

    RFK Jr.’s request is based not on new scientific data, but bogus political “research” from a conservative organization, the Ethics & Public Policy Center — a group with a long history of opposing reproductive rights. Mifepristone has been FDA-approved since 2000 and has a well-established safety record backed by over two decades of use and clinical data.

    “This is yet another attack on women’s reproductive freedom and scientifically-reviewed health care from an HHS Secretary who just yesterday said in a Senate hearing: ‘I don’t think people should be taking medical advice from me.’ California will continue to protect every person’s right to make their own medical decisions and help ensure that Mifepristone is available to those who need it.”

    Governor Gavin Newsom

    Newsom actions to protect abortion access

    In the years since the Dobbs decision, California has stepped up to lead the way in protecting access to reproductive freedom for people in California and for those who travel to California to access this essential health care:

    • May 2025: The 2025-2026 May Revision proposes expanding the authority of CalRx to purchase brand-name drugs. This change gives the state more tools to respond to supply chain disruptions, market manipulation, or politically motivated restrictions that could threaten access to essential medications — including medication abortion.
    • May 2024: Governor Newsom signed SB 233 with the Legislative Women’s Caucus to allow Arizona abortion providers to temporarily provide abortion care to patients from Arizona who travel to California for care following the Arizona Supreme Court’s ruling to reimpose a regressive 1864 law imposing a near-total abortion ban in their state. 
    • January 2024: The Reproductive Freedom Alliance, led by Governor Newsom, filed an amicus curiae brief with the U.S. Supreme Court in the case of Food and Drug Administration, et al., v. Alliance for Hippocratic Medicine, arguing that, if the Court allowed the Fifth Circuit’s decision rejecting FDA’s approval of mifepristone to stand, it would undermine Governors’ ability to provide adequate healthcare services and would have far-reaching implications beyond reproductive healthcare. The Supreme Court sided with the FDA in June 2024.
    • May 2023: First Partner Siebel Newsom spoke with the California Legislative Women’s Caucus about the State’s efforts to protect reproductive freedom.
    • April 2023: Governor Newsom procured an emergency stockpile of Misoprostol, a safe and effective medication abortion drug, as legal challenges continue to move through the courts in an attempt to block Mifepristone.
    • March 2023: Governor Newsom joined 13 other Governors in calling on major pharmacies to clarify plans for dispensing Mifepristone and other actions they plan to take to safeguard access to reproductive health care drugs.
    • February 2023: Governor Newsom launched the Reproductive Freedom Alliance, a coalition of 22 Governors fighting together to protect and advance reproductive freedom.
    • January 2023: First Partner Siebel Newsom joined reproductive rights leaders on the steps of the California Capitol to talk about the importance of storytelling, uplifting voices, and sharing lived-experiences when it comes to the fight for reproductive freedom.
    • November 2022: 
      • Governor Newsom posthumously pardoned California abortion provider Laura Miner as a powerful reminder of the generations of people who fought for reproductive freedom in this country.
      • Voters pass Governor Newsom and the Legislature’s Proposition 1, an amendment to the state constitution to enshrine the right to reproductive freedom – including abortion care and contraception.
    • September 2022: 
      • Governor Newsom launched Abortion.CA.Gov to ensure people across California, and the country, can access essential information regarding reproductive health care, including resources available to support access to care.
      • Governor Newsom, working with the Legislature, ensured California passed the largest reproductive freedom bill package in state history, building firewalls around California as a reproductive freedom state.
    • June 2022, Governor Newsom:
      • Signed legislation to help protect patients and providers in California against radical attempts by other states to extend their anti-abortion laws into California, on the same day Roe v. Wade was overturned.
      • Invested over $200 million in reproductive health care. A large amount of these funds have already been disbursed for a variety of community efforts to maintain and increase reproductive health care services.
      • Issued an Executive Order protecting all state-held data and information from being used by out-of-state anti-abortion groups to target providers and patients.

    Joined the Governors of Oregon and Washington to launch a new Multi-State Commitment to defend access to reproductive health care and protect patients and providers.

    Recent news

    News “We’re done with barriers. Let’s get this built.” What you need to know: Governor Newsom’s proposed budget includes proposals to streamline permitting and accelerate development  —- clearing the path for more housing and economic opportunity.  SACRAMENTO –…

    News Tax cut for military retireesUniversal pre-kindergarten for all Expanded before school, after school, & summer schoolFree school meals for all kids Boosting literacy & readingBuilding more housing, ASAPMore water for CaliforniansLowering drug…

    News Reducción de impuestos para jubilados militares Pre-kinder universal para todos Ampliación de programas antes y después de clases y cursos de verano Alimentación escolar gratuita para todos los niños Impulso de la alfabetización y la lectura Construyendo más…

    MIL OSI USA News

  • MIL-OSI Australia: Press conference, Strathpine

    Source: Australian Parliamentary Secretary to the Minister for Industry

    Ali France:

    It will come as no surprise to anyone here that cost of living is the biggest issue for people in my electorate of Dickson, paying the bills has been a real struggle. Labor went to the election with a really great plan to address cost‑of‑living issues and part of that was supporting wage increases.

    I was really, really pleased to see the figures this week that showed 18 months of real wage growth, and that’s all down to 3 years of really hard work by Jim and his team.

    We know that under the Coalition that wages were falling and that people were going backwards. So it’s really great to have the Treasurer here today in Dickson, as well as all of my other Queensland colleagues, and I’m now going to hand over to Senator Chisholm.

    Anthony Chisholm:

    Thanks Ali, it’s great to be with you, and the growing Northside Labor team in Emma and Corrine, and we welcome Jim from the Southside to the Northside.

    Ali, Emma, Corrine and myself are all based on this side of town and in outer suburbia. We understand that the Petrie and Dickson electorates and those on this side of town are full of people who work hard every day, want to provide for their families and get ahead in life.

    A defining feature of the Albanese government in the first term has been support for wage increases. We saw it during the 2022 campaign, and we saw it during the 2025 campaign as well, and I think it was a defining element to us receiving a good vote like we did here in Dickson and Petrie to help us win these seats to be part of an Albanese Labor government.

    So I’m really pleased that the Treasurer is here today to talk to us but also outline the role the government is going to play supporting those people on award wages to get ahead in life. They work hard, they deserve a decent pay as a result of that, and it’s important that the Albanese government supports them in that endeavour as well. So thanks, Treasurer.

    Jim Chalmers:

    Thanks very much, Chis, and it’s great to be here in Strathpine with really important parts of our much bigger, much better Queensland team now in the Albanese Labor government.

    I wanted to thank and congratulate Ali France on her stunning victory here in Dickson – similarly, Emma Comer in Petrie, we’re really looking forward to working with Corrine Mulholland when she joins the Senate in July, and I also congratulate Anthony Chisholm for being sworn in as a frontbencher in the Albanese Labor government as well.

    Wages and the cost of living were front and centre in our first term, they were front and centre in the campaign, and they will be front and centre in the second term as well.

    Decent pay, better wages, decent conditions, great jobs, these are Labor’s reasons for being, and you can see that in the progress that we’ve made together on wages, on jobs, in the labour market and the economy more broadly, and you can see it in the submission that we are lodging today.

    Today we are lodging our submission to the Fair Work Commission’s Annual Wage Review, which is all about recognising that millions of Australians on awards need and deserve decent pay so they can work hard and provide for their loved ones.

    The most important feature of today’s submission is we are seeking an economically sustainable real wage increase for Australians on awards.

    This is all about ensuring that 3 million Australians can get the decent pay that they need and deserve to provide for their loved ones.

    We’re very proud to be making this submission today, because it builds on the progress that we have made together when it comes to wages and jobs.

    This submission is responsible, it is fair, and it’s consistent with our efforts to provide tax cuts for every Australian taxpayer as well.

    This Albanese government is all about ensuring that Australians earn more and keep more of what they earn, and our submission today to the Fair Work Commission reflects that objective.

    It does build substantially on the very encouraging progress that we have been able to make together on wages and in the labour market more broadly.

    Already, people on the minimum wage are earning $143 a week more since Labor came to office. Australians on the medium wage are earning $206 a week more since Labor came to office. We’ve created 1.1 million jobs since we were elected. Participation is at or near record highs. Average unemployment has been historically low.

    Just this week, as Ali said, we got very encouraging news on wages, 18 consecutive months of annual real wages growth, the strongest real wages growth for 5 years. Another 89,000 jobs created in the data that we saw just yesterday. This shows we have been making progress together, and the submission we lodged today is about building on that progress.

    If you look more broadly across the economy since we came to office, real wages were falling sharply when we came to office, we’ve turned that around, but we’ve made progress more broadly on the economy as well.

    Inflation is down very substantially, real wages are up, unemployment is very low, growth is rebounding in our economy, we’ve got the debt down, interest rates have started to come down earlier in the year as well.

    We know that there’s more work to do because people are under pressure, and that’s why this submission today seeks a real wage increase for millions of Australians. We have made a lot of progress together, and we seek with this submission today to build on that progress so that Australians can earn more and keep more of what they earn, and so Australians can earn more to provide for their loved ones when they work hard and get ahead.

    Happy to take a few questions.

    Journalist:

    What do you mean by ‘economically sustainable amount’, is that in line with inflation, or is there a figure on that?

    Chalmers:

    Consistent with our earlier submissions, we don’t put a number in our submission, that’s been our practice for really quite a while now. What we are seeking is an economically sustainable real wage increase for millions of Australians on awards – and ‘economically sustainable’ reflects the fact, and you can see that in the detail of our submission, is that we want to make sure that this real wage increase is provided consistent with our other economic objectives, by getting inflation down and our other economic objectives as well.

    We’re obviously very focused on the fight against inflation, we have made a lot of progress there, but it’s not mission accomplished because people are still under pressure.

    I consulted with the Reserve Bank Governor as we finalised this submission. The Treasury also consulted with, I think, the Assistant Governor of the Reserve Bank to make sure that what we are proposing is responsible, it’s sensible, it’s sustainable, and it’s consistent with inflation being sustainably in the Reserve Bank’s target band, and I’m really confident that it is.

    Journalist:

    How will you avoid a budget black hole if your super tax goes through and people take capital offshore?

    Chalmers:

    A couple of things about that. What we’re proposing here is still very concessional treatment for Australians with very big superannuation balances, so we’re taking the current concessional treatment and making it slightly less concessional, but still concessional.

    This is a very modest change to the taxation of very large superannuation balances. It reflects about half a per cent of people. We announced it more than 2 years ago, we’ve done a bunch of consultation on it, it’s been in the Parliament for a big chunk of that time, and it means that there is still concessional tax treatment for people with big balances, but slightly less concessional.

    This is an important part of our efforts to make the budget more sustainable, and to fund our priorities, including strengthening Medicare, providing cost‑of‑living relief, the tax cuts for every Australian taxpayer. It’s responsible, it is modest, it only applies to a tiny sliver of people in superannuation, and it’s still concessional.

    Journalist:

    Why won’t you index, just with that indexation, start modest, and then creep up, and become [indistinct]?

    Chalmers:

    This is consistent with the treatment in a whole range of areas in the tax system. There are a lot of thresholds in the tax system and more broadly that aren’t indexed, and what that means is that governments of either political persuasion into the future can take decisions to lift the threshold; we’ve seen that, as I’ve said, in other parts of the tax system.

    Some of this analysis that you see about the thresholds in 30 or 40 years’ time, that assumes, I think wrongly, that no government of either persuasion would change that threshold.

    Journalist:

    Treasurer, can you –

    Chalmers:

    We’ll just go here and then to you.

    Journalist:

    On childcare, should taxpayers pay for these pay rises or parents out of pocket, and is that fair?

    Chalmers:

    We’ve provided billions of dollars to make sure that the early childhood educators who are doing such an incredible job for young people and for families in our communities, that they get the pay that they need and deserve.

    I was very proud to work very closely with Anne Aly and Jason Clare, and the Prime Minister and others in the course of the last term to make room for the Commonwealth contribution to these pay rises.

    This is an area with a lot of young families, so is the area that Emma represents, the area that I represent, and we know how important early childhood educators are. We want to make sure that they’re paid properly, we’ve made room in the Budget for billions of dollars to make sure that that’s a reality.

    Journalist:

    Treasurer, can you explain how defined benefits pensions will be taxed? How’s it calculated, what’s in [indistinct].

    Chalmers:

    The actuarial calculation is similar to the calculation that currently applies to the changes that the Coalition made when they were in office. There’s a formula which is calculated by actuaries and applied by the Tax Office in a way that is not inconsistent with the way it’s currently calculated to some of the changes that my predecessors made.

    Journalist:

    Treasurer, what is your reaction to Gerry Harvey saying a tax on unrealised capital gains is gross stupidity of the highest order?

    Chalmers:

    It’s not unusual for him to criticise Labor governments. I try and listen respectfully when people make a contribution to the national public policy conversation, but I think in Gerry’s case, he’s a relatively frequent critic of Labor governments. I don’t get too carried away by it, nor do I dismiss it.

    If you look at some of the commentary over the last couple of days, you know, there was one piece that was pretending that Campbell Newman, of all people, was some kind of observer of Labor government policy.

    You had one Liberal politician, whose primary purpose was to raise campaign donations, you had another Liberal politician lie about there being no legislation available when he was on the Committee that scrutinised that legislation in detail.

    I understand that when you’re making a change, even a modest one like this one, people have views about it, and people with very large superannuation balances will have views about it, political opponents will have views about it as well.

    This is a modest change, it makes a meaningful difference to the budget, but it still provides very concessional treatment for people with more than $3 million in superannuation, and it helps make the budget more sustainable and fund our priorities.

    Journalist:

    The vaccination rates among children and teenagers have dropped to critical levels across the country. Will the government put more money into urgent campaigns or other awareness campaigns to encourage parents to get their kids vaccinated?

    Chalmers:

    I’m sure that that’s something that Mark Butler, the Health Minister, is considering, but we already put a lot of effort into educating and encouraging people to get vaccinated.

    I personally found that story to be quite confronting to think that after all of the progress that’s been made in recent decades that we’re going backwards, I personally find that very troubling, very concerning and very confronting, and I’m sure the Health Minister’s in the same boat, and he’s working out what, if anything, else we could do to try and arrest that slide.

    Journalist:

    The $150 electricity rebate’s due to run out at the end of the year. Is the government open to considering extending that, considering the affordability crisis?

    Chalmers:

    Well, we’ve already extended those electricity bill rebates, that’s the $150 you refer to in your question. They were otherwise due to run out at the end of next month, and now they’ll be extended for another 6 months.

    From budget to budget, we evaluate the circumstances we’re in, we look at the pressures on people and the pressures on the Budget as well, and we do what we can to help out. That’s why, and my colleagues here would know this, having spent so much time engaging with people in their own communities, the highest priority of the Labor government in the first time was to get on top of inflation and help people with the cost of living.

    Electricity bill rebates are an important port of that, 3 rounds of tax cuts, cheaper medicines, cheaper early childhood education, fee‑free TAFE, all of these things are about recognising that when people are under pressure, there is a role for governments to step in and help where they can responsibly do that.

    So from budget to budget, and we’ve had 4 already, and the fifth one will be in May next year, from budget to budget, we see if we can do more, if we can afford to do more to help people with the cost of living, and people can expect that next May, just like they could expect that in the first 4 budgets.

    Journalist:

    Treasurer, Andrew Bragg says that ‘If Mr Chalmers is so sure his unrealised gains tax will apply to Mr Albanese’s pension, he should say exactly how much tax will be paid in the first year of his pension’. Can you nominate that figure?

    Chalmers:

    One of the reasons why nobody takes that guy seriously is because when it comes to the Prime Minister, his pension’s not yet known. Now we don’t know his circumstances into the future.

    He should know, he’s on the Committee that scrutinised the legislation that Andrew Bragg lied about and said didn’t exist. He also said that there’s no allowance in the legislation for defined benefit schemes for politicians.

    Those are lies. And you need to be really careful not just to read out whatever he tweets, because he’s been caught out lying in the last day or so. I would encourage you respectfully not to take his word for it, especially this week, after he’s been caught out lying so egregiously.

    There is provision for defined benefit schemes, there are calculations, those calculations are very similar to the ones that the Liberals and Nationals put in when they changed superannuation in the last term of the government, and that will apply to the Prime Minister, it will apply to any politician who’s got the equivalent of more than $3 million in super.

    Journalist:

    What do you make of Allan Fels’ call for an ACCC Inquiry into Bunnings?

    Chalmers:

    I’ve got a lot of time for Allan Fels, I respect him, I speak with him from time to time, he’s a great person with a substantial record of achievement.

    We’re already acting on competition, funding the ACCC much more substantially, I provided another $30 million to empower one of Allan’s successors in that role, Gina Cass‑Gottlieb, doing a wonderful job, we’ve found more resources for her.

    Our primary focus is on the supermarkets, we’ve made that really clear, price gouging and the Food and Grocery Code, but we have the ability, should we want to, to expand some of that focus, and the extra resources that I provided the ACCC will help ensure that where there’s more work to be done, it can be done.

    Journalist:

    Treasurer, there’s –

    Chalmers:

    We might just take 2 more. One more, and then another Andrew Bragg tweet, and then we’re done.

    Journalist:

    There’s an issue unfolding with the disability company, Cocoon SDA Care that operates partly in your electorate. Do you have any concerns about what’s going on with Cocoon and have any of your constituents raised concerns?

    Chalmers:

    Not that I’m aware of, but I’ll look into that, that’s the first I’ve been aware of that particular issue, but I’ll make sure I look into it, and if there’s anything I can say publicly at some future point, I’ll do that.

    Journalist:

    What do you say to the leading independent economists, just not Gerry Harvey or Andrew Bragg, who say that this will hurt investment, wealthy people will take their investments away from, you know, venture capital and start‑ups, and it could ruin the tech industry?

    Chalmers:

    First of all, there’s not a unanimous view amongst economists about that, or about the worthiness of the change that we’re proposing. I think Chris Richardson, for example, wrote something supporting it, and so always, when you’re making a change like this, there’s always a range of views, and obviously I follow closely the comments made by the peak groups and others.

    It really comes back to the question I gave earlier to your colleague; we’re still providing concessional tax treatment for people with big balances in superannuation, it’s just slightly less concessional, but it’s concessional compared to the marginal rate that people would be paying.

    And so I think we need a little bit of perspective here, I know that this is seen in some quarters as contentious, but again, I mean we announced this policy almost 2 and a half years ago, it’s been in the Parliament for a big chunk of that, we’ve been consulting on it, it’s a modest change, it still leaves concessional tax arrangements in there for people who have more than $3 million in super.

    I expect that there’s a campaign run about it, I expect that people have got views about it, but I do think we need a bit of perspective here. It is a modest change, it does impact only a very small amount of people, and it still provides concessional tax treatment.

    Journalist:

    Treasurer, just on –

    Chalmers:

    I might just take one more here because you’ve been light on, and then we’ll go.

    Journalist:

    Thank you, sir. Just about the wage review again.Have you spoken to the Reserve Bank about the wage review and whether or not it’s inflationary?

    Chalmers:

    Thank you. I have had discussions with the Governor of the Reserve Bank and the Treasury has been engaging with the Assistant Governor as well.

    We wanted to make sure that the submission that we’re putting forward, which is about a sustainable real wage increase for millions of Australians on awards, that that’s consistent with our other objectives, including getting on top of this inflation, which has impacted economies around the world over recent years.

    So I consulted the Governor, I think towards the end of March, I gave her a heads‑up today that we were making our submission today, the Treasury’s been engaging with the Reserve Bank and its staff, and that’s because we have made sure that this is consistent with inflation remaining sustainably in the band; that’s our objective.

    One of the things I’m really pleased about and proud of collectively in our economy, is we’ve managed to get real wages up over a sustained period of time at the same time as we’ve got inflation down, kept unemployment low, got the economy growing again, we’ve seen interest rates started to come down earlier this year, we’ve got the debt down in the Budget, so we’re paying less interest on it.

    So this, I think, does reflect the very substantial progress that Australians have made together in our economy. We know that there’s more work to do because people are under pressure, the global environment is still uncertain, but the submission that we take today reflects all of our economic objectives and primarily making sure that when people work hard, they can get ahead.

    I’ll take one more from you, then we’re done.

    Journalist:

    The ACTU want it to be 4.5 per cent, ARA says no more than 2.5 per cent. Is it somewhere in between that you kind of want it?

    Chalmers:

    It’s unusual, and in fact it’s welcome for different groups, including the union movement, to make submissions to the Fair Work Commission’s process. Those submissions close today, there will be hearings next week, a decision next month, it will kick in in July, and it’s a good and welcome part of the process that everyone’s got the ability to make a submission, like the government has today.

    Some organisations nominate numbers, others like the government don’t nominate numbers. The Fair Work Commission in its wisdom will weigh up all of that and come to a decision.

    Journalist:

    Leaning more towards the union, or the business bodies?

    Chalmers:

    Well, that’s not how we make our submission. You know, we’ve made a detailed submission today. You know, I’ve worked really closely with Amanda Rishworth on it, before that with Murray Watt, before that with Tony Burke. We put a lot of effort, a lot of thinking, we apply a lot of consideration to the submission that we make, we don’t put a number on it like other groups do.

    And I also welcome the fact that when we’ve been through this process on a number of occasions already in the life of this government, that the Fair Work Commission has provided, you know, decent pay increases for Australians who are low paid or on awards. That’s a very good thing, and we hope to see that again. More than that, we hope to see a real wage increase.

    Thanks very much everyone.

    MIL OSI News

  • MIL-OSI Australia: Updated information about global and domestic minimum tax

    Source: New places to play in Gungahlin

    We’ve published updates on our website about key aspects of the global and domestic minimum tax.

    The updates follow on from the royal assent of the primary legislation, and the subordinate legislation being registered as a legislative instrument.

    Our website information is designed to help taxpayers who may be in-scope of Pillar Two to meet their obligations, as first lodgments are due by 30 June 2026.

    The global and domestic minimum taxes are a key part of the Organisation for Economic Co-operation and Development’s coordinated global approach to prevent a ‘race to the bottom’ on corporate tax rates.

    What the website updates cover

    Our website information now includes:

    • guidance about how we’ll administer potential amendments to Australian law to address inconsistencies
    • an overview of the mechanics for calculating top-up tax
    • additional information on how the rules apply, including in respect of specific entities
    • additional information and examples about lodgment, payment and record-keeping obligations
    • how Pillar Two interacts with other provisions and how it applies.

    Moving forward

    Through our consultation with the Pillar Two Global and Domestic Minimum Tax Working Group, we’ve been considering the need for, and prioritising the development of, formal and informal guidance for the market. We’re also updating existing guidance that may be affected by the introduction of this measure.

    We’ll continue to update our website with more information over the coming months.

    To provide feedback on priority issues your organisation is facing, or if you have any questions about the Australian Pillar Two rules, you can contact us via the Pillar 2 mailbox.

    Keep up to date

    We have tailored communication channels for medium, large and multinational businesses, to keep you up to date with updates and changes you need to know.

    Read more articles in our online Business bulletins newsroom.

    Subscribe to our free:

    • fortnightly Business bulletins email newsletterExternal Link
    • email notifications about new and updated information on our website – you can choose to receive updates relevant to your situation. Choose the ‘Business and organisations’ category to ensure your subscription includes notifications for more Business bulletins newsroom articles like this one.

    MIL OSI News

  • MIL-OSI Australia: Company tax rates

    Source: New places to play in Gungahlin

    Our commitment to you

    We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

    If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

    Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

    If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

    Copyright notice

    © Australian Taxation Office for the Commonwealth of Australia

    You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

    MIL OSI News

  • MIL-OSI Security: Two men arrested, charged with operating large-scale marijuana grow operation in Wayne County, NY

    Source: Office of United States Attorneys

    BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Ferrydoon M. Ardehali, 55, of Staten Island, NY, and Colby Riggle, 37, of California, were arrested and charged by criminal complaint with manufacturing and possessing with intent to distribute 1,000 or more marijuana plants. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life.

    Assistant U.S. Attorney Donna Duncan, who is handling the case, stated that according to the complaint, in January 2025, the DEA began investigating a large-scale illegal marijuana cultivation operation, under the direction of Ardehali and Riggle, on Daansen Road in Walworth, NY. The investigation revealed that the defendants were selling and distributing marijuana to multiple businesses that are New York State-authorized cannabis grow facilities, including in North Tonawanda and Clarence, NY, under the business name Integrity Farms & Greenhouses, Inc. a records check with the New York State Office of Cannabis Management discovered that neither Integrity Farms & Greenhouses, Inc., nor any other business associated with the operation has been issued a New York State license to grow cannabis or hemp.

    On May 14, 2025, investigators executed a search warrant at the Daansen Road property. The complaint states that it was immediately apparent that marijuana was being grown on a large scale, processed, and packaged within the facility. Investigators seized approximately 29,406 growing marijuana plants, and approximately 3,700 lbs. of processed marijuana.

    The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division, the Wayne County Sheriff’s Office, under the direction of Sheriff Robert Milby, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Acting Field Office Director Steven Kurzdorfer, U.S. Border Patrol, under the direction of Buffalo Station Patrol Agent-in- Charge Martin Coombs, Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, Internal Revenue Service Criminal Investigation New York, under the direction of Harry Chavis, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Eric Butler, the Cuba Police Department, under the direction of Chief Dustin Burch, the Olean Police Department, under the direction of Chief Ron Richardson, and the Salamanca Police Department, under the direction of Chief Jamie Deck.

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.   

    # # # # 

    MIL Security OSI