Category: Vehicles

  • MIL-OSI Australia: Transcript-Press conference, Frankston

    Source: Australian Ministers for Regional Development

    JODIE BELYEA: Good morning. Jodie Belyea, the Federal MP for Dunkley here, with the Minister for Infrastructure and Transport, the Honourable Catherine King. And we’re here today to announce a $923,000 funding initiative into the Tower Hill Road precinct in Frankston South. Each day, this one kilometre stretch of road sees over 2000 students from Overport Primary and Frankston High School come to this area to and from school. It’s very congested, sometimes unsafe, so this funding is going to ensure that people can walk, ride and drive through this area in a safe and orderly manner so that everyone gets to school easily.

    And now I’m going to hand over to the Minister to talk a bit more about the whole initiative.

    CATHERINE KING: Yeah, thanks very much, Jodie. It’s great to be here and particularly also with Councillor Brad Hill as well – it’s part of his ward. And really this project that we’re funding here, and I’ll talk a little bit about the program all up, but just over $923,000 really is the Active Transport Fund. It’s been out for competitive expressions of interest, basically expressions of application. And basically what we’ve seen with a project like this is exactly what we’ve been looking for, trying to make sure we’re making our transport to schools safer, trying to make sure that we’ve got people who are in cars can actually slow down around schools, and also really utilise the amenities in your neighbourhoods much better. So this is a great example. It’s part of $21 million we’re announcing today across the state of Victoria, out of the Active Transport Fund.

    Further south there’s a project in Phillip Island, some $980,000 there for Bass Coast Shire, particularly for Cowes. And that will really help with the Regional Precincts and Partnerships Program there– we’ve done down the Esplanade, again, making it more walkable, less people, less reliant on cars. Ararat Rural Council, there’s some funding going to them there for the Ararat on the move strategy, something that that council has been working on for a while.

    This program was very highly sought after, so I do want to particularly commend the Frankston City Council and the officers, but also Brad, because he almost did a little dance before when we saw him about this project. This has been on your list for a while, Brad. Really commend the council officers. These are really important ways in which we’re actually making the neighbourhood safer, but we’re also giving people back your amenity so that you can move around. You can use your bike, you can push your pusher. If you’ve got a walker, you can walk safely in your neighbourhoods, and you don’t have to rely on your car so much. And that’s really what the Active Transport Fund is all about.

    BRAD HILL: Fantastic. Thank you. Brad Hill, local ward councillor, and I am really, happy this project now gets some traction. And, you know, it ticks all the boxes. It links the sporting precinct. It links our community centre, it links the primary school, it links Frankston High School. It links the surrounding streets right up to the end of where Moorooduc Road is, where the existing path network is. So it provides safe connectivity for all those kids walking, riding. But it’s not just about bikes. It’s not just about kids and community centres and sporting clubs. It’s also about mothers with prams. It’s also about people who can’t walk properly, uh, people who have to ride a disability scooter. So it just ticks so many boxes. And it’s clear to me this project was selected on its merits for all those reasons. So I’m really, really happy. And I thank the Minister today for the announcement.

    CATHERINE KING: You are welcome.

    JOURNALIST: Councillor, how long has this project been in the works?

    BRAD HILL: A few years now. The council has a strategy for linking together our disparate network of shared user paths. We’ve been very clear what the strategy is, and yeah, it’s a few years now, and there’s a few more to go.

    JOURNALIST: Jodie, how do you think your community is going to respond to this?

    JODIE BELYEA: They’ll be thrilled. I have lived and worked in this area for some time, and I’m a local resident in this ward, so I know how congested this gets, having seen and lived in this area. So they’ll be thrilled. Safety first. And active transport.

    BRAD HILL: Exactly. It’ll encourage people to leave their homes more than perhaps they were before. That’s what I think. Yeah.

    MIL OSI News

  • MIL-OSI USA: On Senate Floor, Shaheen Blasts Trump Administration’s Reckless Firing of FAA Personnel Critical to Aviation Safety

    US Senate News:

    Source: United States Senator for New Hampshire Jeanne Shaheen

    (Washington, DC) – On the Senate floor, U.S. Senator Jeanne Shaheen (D-NH) raised concerns for public safety after the Trump Administration recklessly decided to fire hundreds of Federal Aviation Administration (FAA) personnel critical to aviation safety. This week’s decision will further strain the system at a time when incidents and near-misses are at a high. Last week, Shaheen and U.S. Senator John Hoeven (R-ND) sent a bipartisan letter calling on Acting Administrator of the FAA, Chris Rochelau to urgently work with Congress to address air safety workforce staffing shortages. You can watch her remarks in full here. 

    Key Quotes:

    • “Many towers and facilities are operating buildings and on equipment that’s five, ten, even fifteen years old and when something goes wrong, they need to know there’s someone on call to fix things because lives literally depend on it. Americans need to know that the skies are secure and that their safety is a top priority.” 
    • “I think we should do everything we can to make government run efficiently and effectively. But indiscriminately freezing hiring across the board [and] pushing out thousands of civil servants makes that problem worse, not better.” 
    • “I don’t think people elected Donald Trump to dismantle this country’s air traffic control system. I think they elected him because they wanted to see inflation go down, they wanted to see their grocery prices reduced, they wanted to see help with rental costs, mortgage rates, with energy costs, and what have we seen in the weeks since Donald Trump got inaugurated? No effort to address any of those things.” 

    Full Remarks as Delivered:

    I come to the floor today to call attention to the Trump Administration’s unconscionable disregard for air safety. 

    Last month, here in Washington, we saw the deadliest commercial aviation event on U.S. soil in over 23 years.

    And while this loss of life was horrifying, it was unfortunately not unimaginable. 

    In recent years, near misses at airports across the country have increased, and the incident at DCA illustrated just how quickly these dangerous situations can take a turn for the worst. 

    Several times last year, runway incidents were narrowly avoided, due in no small part to the heroic actions of certified professional air traffic controllers who staff our towers. 

    These controllers are hardworking Americans.

    They often log six-day weeks and ten-hour days—and that’s on a good week.

    So even before this week’s misguided and, frankly, stupid—I mean, I have to say, I think it’s a stupid decision to lay off hundreds of FAA workers and air traffic controllers who have been overworked and understaffed.

    And this is not a new problem.

    We’ve known about it for years. 

    For years in Congress, we’ve been sounding the alarm about the need to invest in our air traffic control workforce.  

    In last year’s FAA reauthorization bill, we worked in a bipartisan fashion to address this issue—to support our air traffic control workforce so they can do their vital, often lifesaving jobs effectively.

    By partnering with the National Air Traffic Control Union and the FAA, we successfully adopted a new staffing method, model, staffing model, in the reauthorization bill, and they’ve been making good progress, but of course we have more work to do.

    It’s important to acknowledge that any response to the tragedy at Reagan National Airport must include a commitment to reinforce all parts of our aviation safety workforce. 

    Controllers would be the first ones to tell you that they don’t work in a vacuum. 

    The equipment they use is maintained by hundreds of dedicated support personnel who go through years of highly specialized training.

    Many towers and facilities operate in buildings and on equipment that’s five, ten, even fifteen years old, and when something goes wrong, they need to know that there’s someone on call to fix things because lives literally depend on it.

    Americans need to know that the skies are secure and that their safety is a top priority. 

    Sadly, I can’t say that the actions we’re seeing from this administration does any of that. 

    Secretary Duffy said he wants to surge air traffic controller hiring.  
     

    I agree with him on that. 

    We can and we should hire more air traffic controllers, but not at the expense of the rest of FAA’s workforce. 

    We can hire any number of air traffic controllers tomorrow, but without the dedicated support staff that make their work possible, it wouldn’t matter. 

    So how is the Administration responding to the American people’s distress over increasingly frequent close calls and, indeed crashes, sadly, like the one we saw in Toronto this week?

    Well, over the weekend this administration fired nearly 400 FAA employees, some of them in my state of New Hampshire. 

    We heard an outpouring of concern over the weekend from controllers, pilots, airlines and passengers who want to know that they’re going to be safe when they fly.

    I’m sure the Administration must be hearing this too.

    But when asked about the impact of the irresponsible and reckless effort, this is what Secretary Duffy had to say, he said and I quote, “zero critical safety personnel were let go.”

    Well, so I’m not sure I understand this. 

    We’re telling the American people that if a communications system goes down while the plane is approaching the runway, the person who knows how to get it back up and running isn’t critical?

    That if the power goes out at an en-route facility while 747s are flying overhead, the eighteen fired maintenance personnel who know how to turn the lights back on won’t be necessary?

    That the staffers who develop innovative safety and flight procedures every time there is an incident, to make sure your plane takes off on time and arrives safely, are fair game to be fired?

    Because we just lost 13 of them. 

    And to anyone who’s worried about our national security, good news: According to this administration, the FAA employees working on a classified radar system to detect cruise missiles, aren’t all that important either, and they also were fired.

    So I’m going to say that again because this administration thinks that the civil servants at the FAA’s National Airspace System Defense Program are apparently not critical to our safety. 

    None of this makes me or my constituents sleep better at night, but I bet you it makes our enemies happy. 

    The Administration has tried to defend this by saying that everyone who [they] fired was probationary.

    They’d like you to believe that these are all brand-new employees. 

    Sort of the philosophy that the last one in, is the first one out. 

    But that’s not how the system works, and it sure as heck isn’t how you keep Americans safe. 

    In fact, employees who were promoted based on stellar performance within the last year, many of them who have been with the FAA for ten or fifteen years, are also labeled as probationary employees when they start their new positions.

    So in fact, the Administration just fired some of the people with the most experience, not the least.

    And this speaks to what is a bigger problem. 

    Time and again, we’re seeing this happen with so-called “government efficiency,” in quotes, experts. 

    Listen, like most of us in this chamber, I think we should do everything we can to make government run efficiently and effectively, but indiscriminately freezing hiring across the board, pushing out thousands of civil servants, makes that problem worse, not better. 

    Last week, hundreds of employees at the National Nuclear Security Administration were fired without warning. 

    This week, the Administration is scrambling to try and hire most of them back because they didn’t realize they oversee our nuclear stockpile.

    And the Department of Energy fired more than a thousand employees, including three-quarters of the State and Community Energy Program’s office.

    Now, I don’t know if the people who are making these decisions in the Administration even know what that office does.

    But I can tell you that in New Hampshire we depend on them because they help keep weatherization programs up and running, they support emergency operations in the wake of disasters.

    And with folks in New Hampshire dealing with some of the highest home heating costs, who are worried about how they’re going to keep themselves warm this winter, and states around the country still recovering from floods and fires and winter storms, I can’t imagine why anybody would think that it’s a good idea to get rid of the people who are helping make sure those programs operate. 

    And then on Monday, we found out that dozens of USDA employees, so the Department of Agriculture, who have been working to prevent bird flu, were fired. 

    And then the White House realized what they had done, they panicked and they tried to bring them back. 

    Now that’s on top of all of the people around the globe who have been monitoring the bird flu potential epidemic—who have already been fired with the closure of the U.S. Agency for International Development.

    And just this afternoon, we heard that nearly 500 employees at the National Institute of Standards and Technology would be fired, including almost 60 percent of the CHIPS office.

    So the effort that we stood up, that this Congress stood up, to try and make sure we could compete with China, with Taiwan in the production of semiconductors, which are included in almost everything we use from our cell phones to our refrigerators to our cars, 60 percent of those people are now gone.

    So who’s going to provide that effort that we need in order to compete with China? 

    These are the staff that make sure our high-tech semiconductor manufacturing industry stays competitive. 

    Example after example shows that the firings that Elon Musk has taken credit for have not been thought through. 

    Either he’s doing it deliberately in an effort to undermine the United States or he’s doing it because he’s so ignorant he has no idea what any of these people do or what their operations do.

    Either way, it’s inexcusable. 

    I heard from a constituent this week who works, who worked, past tense, for the New Hampshire Fish and Game Department for 24 years, and she just took a job as a wildlife biologist with the U.S. Fish and Wildlife Service last year. 

    Her job focused on implementing the Pittman-Robinson Wildlife Restoration Act. 

    As my colleagues on both sides of the aisle know, this involves conserving bird and wildlife habitat, hunter education and shooting ranges. 

    Its funds come not from taxpayer dollars, but from excise taxes on firearms, ammunition and archery equipment.

    And yet, her job was terminated under the guise of government efficiency. 

    She has a mortgage; she has kids in college who need health care coverage, but her main ask to me was to help put a stop to these firings and to simply help her get her job back because like most of our public servants, she cares about the mission of her work.

    Over and over, we’re seeing this administration take out irresponsible, reckless initiatives with devastating consequences for critical positions without taking a second to think through or learn about what those positions do. 

    And when things inevitably break as a result, they don’t own up to their mistakes. 

    Instead, they try to convince you that keeping the lights on at control towers or inspecting airplane engines, making plans to manage some of the busiest airspace in the country really isn’t critical to your safety. 

    Well, I don’t believe that and I don’t think you should either. 

    For the sake of the American people, we can and we must do better.

    I don’t think people elected Donald Trump to dismantle this country’s air traffic control system. 

    I think they elected him because they wanted to see inflation go down, they wanted to see their grocery prices reduced, they wanted to see help with rental costs, with mortgage rates, with energy costs and what have we seen in the weeks since Donald Trump got inaugurated?

    No effort to address any of those things. 

    All we’ve seen is an effort at retribution against his perceived enemies, at firing and undermining of services and programs within the government to serve the American people. 

    For the sake of our citizens, we must do better. 

    I’m calling on this administration to right this wrong as quickly as possible, before it’s too late. 

    I yield the floor.

    MIL OSI USA News

  • MIL-OSI New Zealand: SH3 Rukuhia rebuild is flying ahead

    Source: New Zealand Transport Agency

    From Monday 24 February, both lanes of a short section of State Highway 3 (SH3) between Rukuhia Road and Narrows Road near Hamilton airport will be rebuilt and closed to southbound traffic for approximately 4 weeks.

    The rebuild work involves digging out the existing road layers and replacing them layer by layer. The road is then surfaced, swept and line marked. 

    The work will be completed 1 lane at a time. The lane not being worked on will be open to northbound traffic at all times. A 24/7 southbound detour will be in place for light vehicles via Raynes Road and State Highway 21 Airport Road, to re-join SH3, adding approximately 7 minutes to journeys between Hamilton and Te Awamutu.  

    The intersection of SH21 Airport Road and Raynes Road will be under stop/go between 7.30am and 6.00pm each weekday. 

    Any residents travelling southbound will be required to use the detour route to travel north to access their properties. We will make sure that Rukuhia Road will remain open at all times, but it will be left turn in and left turn out only. Once 1 lane is completed, work will switch to the other lane meaning that northbound traffic will stay on SH3 at all times. 

    HPMV’s, overweight and over dimension vehicles will be stacked and allowed through the worksite with the buses, however up to 30 minute delays should be expected.  

    If you are heading to the airport to catch a flight, you may want to leave a few minutes earlier as there will be additional travel time related to this worksite as well as the works at Ōhaupō Village, which are still underway. 

    These works form part of the government’s $2.07 billion investment into road and drainage renewal and maintenance across 2024-27 via the State Highway Pothole Prevention fund.  

    NZTA thanks road users for their patience.

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Three people taken into custody on Karangahape Road

    Source: New Zealand Police (District News)

    Three people have been arrested following a firearms incident in Herne Bay this afternoon.

    At around 1.30pm, information was received that a man was carrying a firearm on Hamilton Road.

    A Police camera operator observed the man getting into a vehicle and tracked it travelling along Jervois Road.

    Police units conducted an armed traffic stop on Karangahape Road.

    As the traffic stop was being carried out, a passenger ran from the vehicle and attempted to get into a vehicle passing by.

    Our staff prevented this from occurring and arrested the 35-year-old man, who had an outstanding warrant for his arrest.

    No injuries have been reported.

    Police arrested two other occupants of the vehicle, a man and woman aged 30, without incident.

    On searching the vehicle, Police have recovered a paintball gun.

    Charges are being considered for what has unfolded this afternoon.

    ENDS

    Jarred Williamson/NZ Police

    MIL OSI New Zealand News

  • MIL-OSI China: US’ new tariffs worsen global prospects

    Source: China State Council Information Office

    U.S. President Donald Trump attends a press conference at the White House in Washington D.C., the United States, Feb. 13, 2025. [Photo/Xinhua]

    After US President Donald Trump’s first punitive tariffs targeted the United States’ major trade partners — Mexico, Canada and China — tariff threats are shifting to the European Union, even the rest of the world. The tariff threats are also shifting from steel and aluminum to computer chips and pharmaceuticals.

    In the latest move, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

    The US has a major trade deficit with many other trading economies, including Germany, Japan, the Republic of Korea and Vietnam, which are likely to be in the firing line later, if not soon.

    A tariff is a tax levied on imported goods and services. In its haste to target the three countries, the Trump administration has ignored concerns about these tariffs fostering inflation or snarling global supply chains. This is a serious mistake on the part of the administration. In the US, wholesale prices are already rising on higher food and energy costs, adding to the growing pile of bad inflation news ahead of more US tariffs. Globally, these risks are real, costly and damaging.

    As the new US administration has been launching another tariff war, China’s economy has been showing progressive signs of stabilization — especially since the fourth quarter of 2024, as the impact of the November stimulus measures has kicked in. During this period, growth accelerated from 4.6 percent to 5.4 percent to reach 5.0 percent year-on-year in 2024, which prompted the International Monetary Fund to recently upgrade China’s GDP growth.

    But what’s fueling these gains?

    China’s industrial production has proved resilient on the back of both domestic and international demand, particularly in electric vehicles and solar panels. The most prominent part of the growth story is the strong expansion of China’s advanced technology, electronics and automobile sectors. The pace of development in industrial robotics is almost as strong, while consumption is being fueled by equipment and durable goods upgrade.

    Yet two main challenges remain. At home, the nearly 11 percent decline in real estate investment suggests the property market is still ailing. But in about 300 Chinese cities, the decline of residential inventory is slowing.

    The external challenges China faces include the impending trade and tech wars, which the first Trump administration launched in 2017, the Biden administration expanded and the new Trump administration is broadening worldwide.

    On Feb 1, Trump imposed 25 percent tariffs and 10 percent duties on energy products imported from Canada and Mexico, and 10 percent tariffs on Chinese goods. The three countries are the US’ biggest trade partners and the US has a trade deficit with each one of them. These tariffs alone would cost an average US household more than $1,200 a year.

    After separate talks between Trump and the Canadian and Mexican presidents, the US agreed to delay levying the extra tariffs for 30 days. But the threatened tariffs on Canadian and Mexican goods, if they are imposed, could reduce long-run GDP by 0.3 percent.

    Moreover, a trade war between the US and its two largest trading partners would hit incomes in the US, impact employment and accelerate inflation. As Trump’s tariffs went into effect against China, Beijing announced a broad package of economic measures against Washington on Feb 10. And more countermeasures are likely to follow.

    Half a decade ago, the US’ punitive tariffs on Chinese goods covered goods worth $396 billion, or more than 90 percent of the total trade. But the first round of Trump’s tariffs against Canadian, Mexican and Chinese goods alone will cover far more traded goods in dollar terms.

    Trump’s four tranches of tariffs on Chinese goods in 2018-19 covered imports worth $360 billion. Today, Canada and Mexico and China account for more than two-fifths of all US imports. New tariffs on the goods imported from the two countries plus additional tariffs on Chinese goods would likely cover imports valued at more than $1.3 trillion. That’s more than 3.5 times the value than half a decade ago.

    This might be just the opening salvo in a series of tariffs the Trump administration is likely to announce in the coming weeks. Factor in the potential/likely retaliatory tariffs and duties by the affected countries and the Trump administration’s “reciprocal tariff” plan, and the final toll could be much higher.

    Ironically, US tariffs are legitimized by a flawed victimization narrative in which Washington is portrayed as a target of wrongful economic and geopolitical measures. In reality, the US’ imposed tariff levels are about geopolitical coercion, not economic factors.

    The threatened wave of tariffs could further heighten trade tensions, reduce investments, hit market pricing, distort trade flows, disrupt supply chains and undermine consumer confidence. In fact, much worse could happen.

    Due to the new US tariffs, we are in for a far costlier, global déjà vu all over again.

    MIL OSI China News

  • MIL-OSI New Zealand: Stretch of SH1 southbound from Foxton temporarily closing for sealing work

    Source: New Zealand Transport Agency

    A stretch of State Highway 1 south of Foxton is closing to southbound traffic as the Levin to Foxton safety improvements project progresses.

    The southbound lane of SH1 will be closed from the southern entrance to Foxton through to the intersection with Oturoa Road between 9am and 3pm weekdays for 1 week from Monday 17 to Friday 21 March 2025.

    The road will remain open to northbound traffic.

    A signposted detour will be in place for southbound road users, who will be detoured left onto Union Street and into Foxton Shannon Road, onto State Highway 57, through to Queen Street East, and back to State Highway 1 in Levin. Detour signage will be in place.

    The lane closure is necessary to allow crews to complete a second coat seal on the highway and undertake some remedial tasks.

    While northbound traffic will remain on the highway, a reduced speed limit will be in place. The detour route is expected to add an additional 15 minutes to journey times.

    NZ Transport Agency Waka Kotahi wants to thank people for their understanding during this work. A one-way closure allows crews to complete the work as efficiently as possible, minimising ongoing disruption to motorists.

    When we rebuild a section of the road and apply a chipseal finish we need to come back later to carry out a second coat seal. This locks in the seal to make it waterproof, keeps it stronger and safer for longer, and helps reduce the likelihood of flushing occurring.

    About the project

    This work follows the completion of Stage 2 of the SH1 Levin to Foxton safety improvements project. Stage 2 saw flexible median and turnaround facilities constructed at Oturoa and Koputaroa roads. A small section of side barrier was also installed on the southbound lane just south of the Oturoa Road intersection to prevent vehicles driving into a ditch

    MIL OSI New Zealand News

  • MIL-OSI Global: CDC layoffs strike deeply at its ability to respond to the current flu, norovirus and measles outbreaks and other public health emergencies

    Source: The Conversation – USA – By Jordan Miller, Teaching Professor of Public Health, Arizona State University

    The CDC played an instrumental, if imperfect, role in the response to COVID-19. JHDT Stock Images LLC/iStock via Getty Images

    In just a few short weeks, the Trump administration has brought drastic changes to the Centers for Disease Control and Prevention and public health. Beginning with the removal of websites and key public health datasets in January 2025, the Trump administration has taken actions to dismantle established public health infrastructure as part of its second-term agenda.

    In addition, the administration has begun a widespread purge of the federal public health workforce. As of Feb. 19, around 5,200 employees at the CDC and the National Institutes of Health had been let go. About 10% of the CDC’s staff have been removed, with plans for additional firings.

    As a teaching professor and public health educator, I, like thousands of other health professionals, rely on CDC data and educational resources throughout my work. CDC websites are the first stop for health information for my students and for health care practitioners, and are vital to protecting the U.S. from infectious diseases, like avian flu and COVID-19, as well as noninfectious health conditions, such as diabetes and heart disease.

    Here’s a quick look at what the CDC does to protect Americans’ health, and how it’s likely to be affected by the Trump administration’s actions:

    Gutting the CDC’s capacity

    Prior to the February cuts, the CDC employed over 10,000 full-time staff in roles spanning public health, epidemiology, medicine, communications, engineering and beyond to maintain this critical public health infrastructure.

    In addition to the centers’ wide variety of functions to protect and promote public health in the U.S., a vast amount of research in the U.S. relies on CDC data. The CDC obtains data from all 50 states, territories and the District of Columbia, which is collated into widely utilized databases such as the National Health and Nutrition Examination Survey, National Health Interview Survey and Behavioral Risk Factor Surveillance System.

    Several of these datasets and CDC websites were removed at the start of the second Trump term, and while they are currently back online due to a federal court order, it remains to be seen if these important sources of information will remain accessible and updated going forward.

    The CDC also publishes the Morbidity and Mortality Weekly Report, which allows for ongoing and timely surveillance of key health conditions. The reports cover a wide range of topics, including wildfires, motor vehicle accidents, autism, asthma, opioids, mental health and many others. The CDC plays a central role in monitoring and reporting the spread of flu in winter months through its FluView, which informs clinical practice as well as public health interventions.

    Physicians are reporting that their ability to respond to the surges in respiratory viruses they are seeing has been hobbled by the missing data and by prohibitions on CDC staff communicating outside the agency.

    The CDC’s famed “disease detectives,” part of the Epidemic Intelligence Service, appear to have been spared following public outcry after more than half of its members were initially told they would be let go as part of the Feb. 14 mass layoffs.

    It remains to be seen if this group will remain intact long term. Concerns are growing that shakeups to the nation’s infectious disease surveillance teams will hamper the government’s ability to respond effectively at a time when avian flu and measles are growing concerns in the U.S.

    The CDC’s headquarters are in Atlanta.
    Nathan Posner/Anadolu Agency via Getty Images

    History of the CDC

    The CDC began as a small branch of the U.S. Public Health Service in 1946 as an outgrowth of successes fighting malaria in southern states during World War II and before. Its founder, Dr. Joseph W. Mountin, envisioned that it would come to serve all states, addressing all communicable diseases. Since that time, the CDC has evolved into the nation’s premier public health organization, leveraging both clinical and population health sciences to prevent and mitigate challenges to the nation’s health.

    In its first 40 years, the CDC helped eradicate smallpox and identify the causes of Legionnaires’ disease, toxic shock syndrome and HIV.

    As the country’s primary health challenges have shifted from communicable diseases to noncommunicable ones over recent decades, the organization has adapted, expanding its reach and priorities to meet changing public health needs. The CDC also has the ability to flex and scale up efforts rapidly when needed to respond to novel outbreaks, which is essential for containing infectious diseases and preventing escalation.

    CDC’s global reach

    Recognizing that health does not exist in a vacuum, the CDC also operates internationally to mitigate health challenges that could threaten health in the U.S. over time. The agency is active in addressing diseases that are endemic in certain areas, such as tuberculosis and HIV. It also responds to outbreaks from emerging threats, like Ebola and Marburg virus disease.

    The CDC played a crucial role in responding to the COVID-19 pandemic, coordinating with the World Health Organization, domestic health agencies and others to plan and execute a robust response.

    In 2024, the CDC worked with the WHO to respond to a Marburg virus outbreak in Rwanda that lasted for several months. On average, about half of people infected with Marburg virus do not survive, so early detection and effective response are essential to prevent loss of life and contain outbreaks before they spread widely.

    On Jan. 20, 2025, the White House announced President Donald Trump’s plans to withdraw from the WHO. This move further weakens the country’s ability to manage and mitigate threats to Americans’ health and national security.

    Not only does the WHO do essential work to protect children around the world from needless death due to starvation, but it monitors and responds to infectious diseases. The U.S. has been the largest contributor to the WHO, with approximately 12%-15% of its operating costs coming from the U.S. That means that removal of U.S. support will also affect the WHO’s capacity to respond to international public health issues.

    As the COVID-19 pandemic made plain, a delayed response to infectious disease outbreaks can exponentially increase long-term costs and consequences. It remains to be seen what impact the established relationships between the CDC and the WHO will have on their ability to coordinate effectively during times of crisis.

    The CDC’s work around the world helps to stop outbreaks before they spread – and reach the U.S.

    Future health care workforce threatened

    The reach, flexibility, adaptability and robust foundation of relationships developed over the past eight decades enable the CDC to respond to threats quickly, wherever in the world they arise. This is important for protecting health, and it plays a vital role in global and national security as well.

    In addition to its direct actions to promote public health, the CDC provides workforce development and training to help create an enduring public health infrastructure in the U.S. and abroad. This is more important than ever, as systemic factors have placed pressure on health professionals. The domestic public health workforce has shrunk drastically, losing 40,000 workers since the start of the Great Recession in 2009 due to economic constraints and social pressures during the pandemic. The CDC’s workforce development efforts help counteract these trends.

    Public health workers were reporting high rates of burnout and stress even before the COVID-19 pandemic, which the pandemic worsened. Cuts to the federal workforce, as well as funding for public health programs, will no doubt add to these strains.

    Jordan Miller received funding from CDC in the past.

    ref. CDC layoffs strike deeply at its ability to respond to the current flu, norovirus and measles outbreaks and other public health emergencies – https://theconversation.com/cdc-layoffs-strike-deeply-at-its-ability-to-respond-to-the-current-flu-norovirus-and-measles-outbreaks-and-other-public-health-emergencies-248486

    MIL OSI – Global Reports

  • MIL-OSI Security: Two Teens Indicted on Charges of Assault with Intent to Kill and Other Charges After Opening Fire Near High School

    Source: Office of United States Attorneys

                WASHINGTON – Saki Frost, 18, and Azhari Graves, 18, both of Washington, D.C., were indicted today on charges of assault with intent to kill while armed and other charges stemming from a shooting that occurred on May 3, 2024, near Dunbar High School. The charges were announced by U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith of the Metropolitan Police Department. Both defendants are to be arraigned on February 20, 2025, before the Honorable J. Michael Ryan.

                Frost and Graves were indicted by a grand jury in the Superior Court of the District of Columbia on charges of assault with intent to kill while armed, aggravated assault while armed, assault with a dangerous weapon, and related firearms charges.  Frost, who was 17 at the time of the shooting, was charged as an adult under Title 16, and was also indicted on charges of assault with intent to murder while armed.

                According to the government’s evidence, at approximately 9:53 am, on May 3, 2024, Graves and Frost opened fire on a sedan that was driving down Kirby Street, NW, near Dunbar High School. A witness to the shooting reported hearing machine gun fire. Surveillance video captures Frost and Graves running down an alleyway holding firearms prior to the shooting.  Surveillance video also captures the shooting, in which an individual appearing to be Frost fires a gun toward the sedan. Surveillance footage also captures Graves after the shooting holding a firearm with the slide locked to the rear of the weapon, indicating that the weapon had been fired and the magazine emptied. Graves and Frost then fled the area in a vehicle. Later that day, MPD officers located the defendants’ vehicle and arrested Graves and Frost. Investigators recovered a total of 29 shell casings from the scene of the shooting and numerous fragments from the exterior of Dunbar High School, as well as classrooms inside the school. Investigators also observed at least six bullet strikes to the N Street side of Dunbar. During the shooting, one Dunbar student suffered a graze wound to the head from the gunfire. 

                This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorneys Benjamin Helfand and Christian Natiello of the U.S. Attorney’s Office for the District of Columbia.

                An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI

  • MIL-OSI Security: U.S. Attorney’s Office and FBI Charge Woman with Involuntary Manslaughter

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Casamero Lake woman faces federal charges for involuntary manslaughter following a fatal car crash on tribal lands in New Mexico last summer.

    According to the indictment, on August 6, 2024, Debbie Rojack, 45, an enrolled member of the Navajo Nation, killed John Doe by operating a motor vehicle with disregard for human life when she knew and should have known that her conduct imperiled the lives of others.

    Rojack will remain in third party custody on conditions of release pending trial, which has not been set. If convicted, Rojack faces up to 8 years in prison.

    Acting U.S. Attorney Holland S. Kastrin and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations and the New Mexico State Police. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.

    MIL Security OSI

  • MIL-OSI Security: Bridgeport Man Sentenced to 51 Months in Prison for Drug Robbery Attempt

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that ANDY MARTE, also known as “AD,” 31, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 51 months of imprisonment, followed by three years of supervised release, for his role in a drug robbery conspiracy.

    According to court documents and statements made in court, on April 28, 2023, Marte, Kareem Porter, and Tyrone Allen drove to a Bridgeport apartment building where they intended to carry out a robbery at an apartment they believed contained a substantial quantity of drugs and drug proceeds.  Marte separately contacted Jermaine Bethel, who arrived to participate in the robbery.  Marte instructed Bethel, Porter, and Allen, who had a crowbar, to carry out the robbery, while Marte remained in the car, with two handguns, to serve as a getaway driver.  After failing to enter the apartment, Bethel, Porter, and Allen returned to the vehicle where they were encountered by law enforcement. Investigators learned of the scheme by monitoring Marte’s phone, which was subject to a court-authorized wiretap related to alleged drug trafficking activity.  Officers searched the vehicle and its occupants and seized the two handguns and the crowbar.

    Marte’s criminal history includes convictions for multiple firearms offenses and a violent robbery.

    Marte has been detained since his arrest on April 28, 2023.  On March 28, 2024, he pleaded guilty to conspiracy to commit Hobbs Act Robbery.

    Porter, Allen, and Bethel pleaded guilty to the same charge.  On October 28, 2024, Porter was sentenced to 24 months of imprisonment.  On December 2, 2024, Bethel was sentenced to 12 months and one day of imprisonment.  Allen awaits sentencing.

    This investigation was conducted by FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Karen Peck.

    MIL Security OSI

  • MIL-OSI New Zealand: NZ Tourism and Law – Startling New Zealand travel warning after launch of new tourism campaign

    Source: Carter Capner Law

    As New Zealand launches a major tourism campaign targeted at Aussies with the slogan “Everyone must go”, a leading Australian travel compensation lawyer has warned travellers to “go at your own risk”.

    Director of Carter Capner Law and former national president of the Australian Lawyers Alliance Peter Carter has revealed that unlike Australia and most other developed nations, travellers to New Zealand cannot access compensation for injury or death due to the fault of someone else.

    Victims cannot hold wrongdoers accountable for injuries they encounter anywhere in New Zealand as a result of recklessness or negligence, and court claims for damages against people responsible for injuries or their insurers are prohibited.

    Mr Carter said the country has been a “legal liability free zone” since the protections were removed in the 1970s.

    “As Australians we naturally assume that because at-fault motorists, workplaces and business enterprises carry insurance and can be pursued for losses resulting from major injuries – it would be the same across the ditch.

    “But in New Zealand, careless drivers and businesses are immune from liability for the injuries they cause other people.

    “This applies to everyone and includes road accidents, recreational injuries, domestic aircraft accidents and all other situations,” he explained.

    “You have no right to compensation and no avenue to take legal action, even if you are flattened on a pedestrian crossing by a 10 tonne truck.”

    He said one woman from Queensland who suffered serious spinal injuries when a speeding car crossed on to the wrong side of the road collided with her head-on, “fought the New Zealand legal system for eight years and lost.”

    “Australia’s health system will cover you for some medical expenses on your return but you are on your own if you can’t return to full time work.”

    Mr Carter urged all travellers to New Zealand to have travel insurance but said “this stops when you set foot on the tarmac” in Australia. The only way to protect against loss of earning capacity from a NZ road accident is to take out income protection insurance before you travel.

    He said the absence of accountability in New Zealand means there is no economic incentive – like potential insurance premium hikes or lawsuits – to prevent accidents.

    “There is no safety culture and this means road and other accident rates are much higher than Australia, so Australians must visit New Zealand with that knowledge,” he said.

    About Peter Carter:

    Peter Carter is one of the most experienced lawyers in the Australasian region in the fields of aviation, tourism and travel compensation. He is a former national president of the Australian Lawyers Alliance, and was previously a director of the Civil Justice Foundation of Australia. Peter has also held the roles of Queensland president of the Aviation Law Association of Australia and New Zealand, and governor on the board of the American Association for Justice.

    MIL OSI New Zealand News

  • MIL-OSI USA: ICE removes 6-time deported gang member with violent criminal history to Mexico

    Source: US Immigration and Customs Enforcement

    HOUSTON – U.S. Immigration and Customs Enforcement has removed a transnational gang member or criminal alien from the Houston area who illegally entered the United States at least six times, for the third time in 10 days.

    ICE removed Francisco Lopez Melendez, a 32-year-old Mexican national and Suenos-13 gang member, from the U.S. Feb. 19. Melendez has been removed from the U.S. six times and was previously deported to Mexico in November 2013, May 2015, May 2018, October 2018, and November 2019. Melendez has been convicted of numerous criminal offenses while in the U.S. illegally, including three times for failure to give identification or providing law enforcement with fictitious information, twice for drug possession and illegal entry, and once for unauthorized use of a motor vehicle, stolen property, burglary, driving while intoxicated and evading arrest.

    ICE previously removed Jesus Alvarez Sinecio, a 32-year-old Mexican national deported six times, Feb. 10, and Humberto Romero Avila, a 45-year-old Paisas gang member and foreign fugitive who illegally entered the U.S. 10 times, Feb. 13. Romero was wanted in Mexico for allegedly murdering a 22-year-old Mexican national in 2007 and was convicted four times for DWI and once for larceny, illegal entry and illegal reentry. Alvarez had prior criminal convictions for aggravated assault of a family member, alien in possession of a firearm, DWI, illegal entry and illegal re-entry.

    “In recent years, some of the world’s most dangerous fugitives, transnational gang members and criminal aliens have taken advantage of the crisis at our nation’s southern border to illegally enter the U.S.,” said ICE Enforcement and Removal Operations Houston Field Office Director Bret Bradford. “After making it into the country, these violent criminal aliens have infiltrated our local communities and reigned terror on law-abiding residents. Fueled by our unwavering commitment to protect the public from harm, and united in our determination to reestablish sovereignty over our southern border, the law enforcement community in Texas has banded together to remove these dangerous criminals from our country and restore law and order in our communities.”

    For more news and information on ICE’s efforts to enforce our nation’s immigration laws in Texas follow us on X at @EROHouston.

    MIL OSI USA News

  • MIL-OSI New Zealand: Fatal crash, Kaingaroa

    Source: New Zealand Police (District News)

    One person has died following a crash in Kaingaroa last night.

    Police were notified at about 10.40pm that a vehicle had crashed on State Highway 10.

    Unfortunately, the driver was pronounced deceased at the scene.

    No other vehicles were involved.

    Enquiries into the circumstances of the crash are underway.

    ENDS.

    Holly McKay/NZ Police

    MIL OSI New Zealand News

  • MIL-OSI USA: As Snow Arrives in North Carolina, Governor Stein Urges Caution

    Source: US State of North Carolina

    Headline: As Snow Arrives in North Carolina, Governor Stein Urges Caution

    As Snow Arrives in North Carolina, Governor Stein Urges Caution
    lsaito

    Raleigh, NC

    This morning, Governor Josh Stein provided updates on winter weather and information for North Carolinians to help them stay safe. As the winter storm pushes through much of North Carolina today and tomorrow, Governor Stein advised that all North Carolinians continue to take caution, listen to local officials, and plan accordingly for the snow, ice, and cold weather. 

    “Our State Emergency Response Team is using every tool at its disposal to minimize the impact of this storm on North Carolinians,” said Governor Josh Stein. “Over the next 24 hours, think about who in your life might be most vulnerable to this weather; please check on them and make sure they’re prepared, too. Taking care of each other is what North Carolinians do.” 

    Yesterday, Governor Stein declared a State of Emergency in preparation for the winter weather. The State Emergency Response Team remains activated, and the State Emergency Operations Center and Regional Coordination Centers remain in close communication with local emergency management officials to ensure that all resources are available to quickly respond to any needs across the state.

    The forecast for most of North Carolina includes snowfall accumulations of 1 to 2 inches. Northern counties are expected to see 2 to 4 inches of snow, with the highest snow accumulation in the northeastern counties at 6 to 8 inches. In addition to the snow, there will be bitter cold temperatures and gusty winds across the state tonight, producing wind chill values in the teens. 

    As temperatures drop, there may be significant ice accumulation in parts of central and eastern North Carolina. Accumulations of a quarter inch or more may cause tree limbs to break and lead to power outages. It is crucial for all North Carolinians to stay informed about the weather as the storm progresses.

    The North Carolina National Guard (NCNG) has activated more than 180 guardsmen to assist and support local communities across the state. 

    Officials with the N.C. Department of Transportation warn of hazardous travel conditions and advise limiting unnecessary travel. If any travel is necessary, please use caution as the temperature drops and surfaces freeze. The agency deployed roughly 1,500 crew members to pre-treat roads across the state, spreading 3.1 million gallons of brine. 133,000 tons of salt are on hand to treat ice covered roads, and hundreds of trucks are equipped with plows and spreaders to remove snow and ice after a storm hits. 

    Visit ReadyNC.gov for power outage information and for information on how you and your family can prepare for winter weather. For real-time travel information, visit DriveNC.gov or follow NCDOT on social media.  

    To prepare for winter weather, North Carolina Emergency Management officials recommend these tips: 

    • Pay close attention to your local forecast and be prepared for what’s expected in your area. Use a National Oceanic and Atmospheric Administration weather radio or a weather alert app on your phone to receive emergency weather alerts. 
    • Stock up on water and non-perishable food.
    • Keep cell phones, mobile devices, and spare batteries charged.
    • Stay home and off the roads if you can.
    • Store an emergency kit in your vehicle in case you must travel. Include scraper, jumper cables, tow chain, sand/salt, blankets, flashlight, first-aid kit, and road map. 
    • Dress warmly if you go outside. Wear multiple layers of thin clothing instead of a single layer of thick clothing. 
    • Gather emergency supplies for your pet including leash and feeding supplies, enough food for several days, and a pet travel carrier. 
    • Do not leave pets outside for long periods of time during freezing weather. 
    • Check in on your friends and neighbors, especially the elderly, during winter weather.
    • If your power goes out:
    • Only operate generators outside and away from open windows or doors to prevent carbon monoxide poisoning.
    • Never burn charcoal indoors or use a gas grill indoors.
    • Properly vent kerosene heaters.
    • Use battery-powered sources for light, instead of candles, to reduce the risk of fire.
    • If you are utilizing a portable heater, make sure that it is properly ventilated, has at least 3 feet of space on all sides, and never leave children unattended near a heater. 
    Feb 19, 2025

    MIL OSI USA News

  • MIL-OSI Economics: Farewell Address to Staff – Masatsugu Asakawa

    Source: Asia Development Bank

    Speech by Masatsugu Asakawa, President, Asian Development Bank, 19 February 2025, ADB headquarters, Manila, Philippines

    My very dear colleagues, here we are, together again in this room, where I stood before you five years ago to say, “hello,” and “call me Masa.” What a journey it has been!

    I don’t think any of us could have predicted what was in store for us on that February day back in 2020. Within just a few weeks, we were in the grip of a pandemic that drove us into lockdown, causing tremendous hardship and drastically changing how we work.

    My friends, our journey as an ADB family is forever connected to the journey of this region. And I believe we have shaped that journey, for the better.

    We have done our part to help our developing member countries to get through the pandemic and on a path to recovery; to be ready to tackle emerging crises and urgent threats, including the climate crisis; and to maintain focus on long-term development.

    I was so pleased to see highlights of this good work in the video you showed and to hear perspectives from Bruce, Nelly, and Bruno. Thank you very much for your kind words.

    I am deeply humbled that you credit our achievements to my contributions as President. But even more important, these achievements tell a story about what all of us can do when a challenge comes our way, and we face it together.

    So let me take a few moments to share a few reflections on how you have shaped me during this journey.

    I. Meeting unprecedented development challenges with quick and decisive action

    First, we needed quick, decisive, and bold action, at every step: as the pandemic struck, as the climate crisis mounted, and as there were calls to evolve to deliver better and faster.

    I remember coming to my office upstairs almost every day during lockdown. I held videoconferences with ministers and heads of state to see what assistance they needed. I knew ADB needed to respond without delay. And we did, thanks to you.

    I truly believe that our assistance helped to prevent grave suffering for millions, and fiscal collapse across our region. Our response, including budget and vaccine support, were spectacular achievements.

    The same is true for our climate action. I remember the intense discussions we had before going to Glasgow in 2021 for COP26. These paved the way for our $100 billion climate finance ambition, Energy Transition Mechanism, IF-CAP, and a just transition commitment across our climate operations. This was a real turning point that positioned us as the Climate Bank for Asia and the Pacific.

    II. Reforming and innovating to adapt to changing circumstances

    And then, we forged ahead with reforms, to unlock an additional $100 billion in lending capacity through CAF; to take stock, and make key shifts, through the NOM and midterm review of Strategy 2030; and to elevate critical agendas including private sector development, domestic resource mobilization, food security, digitalization, and gender equality.

    You also made sure that the poorest and most vulnerable in our region were not left behind. The ADF replenishment, including the novel financing you prepared, is helping people in places like Afghanistan and Myanmar, and small island developing states.

    All of this was made possible by thinking outside the box. The unprecedented circumstances we faced over the past five years demanded that ADB change quickly and do things differently. You did not hesitate to meet the demands of the moment.

    The circumstances also required ADB to balance many needs. Our operations shifted appropriately during the pandemic, to support response and recovery. It took some time for our climate financing to ramp back up, but it did. I know we will also continue to expand our contributions in areas like education and RCI.

    III. The priority of wellbeing

    As you can see, my friends, there was a lot on my mind over the past five years. A lot of things kept me up at night. But if I may, I’d like to emphasize my most important concern. It was to ensure the safety and wellbeing of staff.

    I spoke to you often during the pandemic. I even sent you a musical greeting on my flute! I hope that it brought you some comfort to know that you were not alone.

    Another experience that I have not talked about as much is the evacuation of our local staff from Afghanistan when the government fell in 2021. It was such a dangerous and unpredictable situation, and we had very few options. But we had to find a way to get our staff to safety. After consulting with heads of state and coming up with a complex plan, we managed to get everyone out, just in time.

    That experience reminded me that staff wellbeing must remain ADB’s highest priority. And the reason is clear: ADB’s most valuable asset is its staff. Even more simply, we are family. And I am so touched by the way you treated me like family.

    Colleagues in our field offices, you were always so warm and welcoming when I visited the countries where you live and work. The memories of our beneficiaries, the historical sites, and the delicious local cuisine—and the selfies I took with you!—will stay with me forever.

    IV. In praise of staff

    Ever since I announced my intention to step down, I have been flooded with good wishes and praise for what ADB has done for the region during my Presidency. But I firmly believe that these successes are not coming from me. They are coming from you.

    You have been so innovative, so responsible, and so loyal to our mission. I always knew that whenever we faced a problem, I could consult staff, and you would come up with quick and relevant solutions. That is why, from Day 1, I felt nothing but optimism that we would achieve our mission. And I was never disappointed.

    Closing

    Your work over the last five years has put our region on the strongest possible foundation to build lasting prosperity, to stay resilient through crises and disasters, and to ensure that growth is inclusive and sustainable.

    Asia and the Pacific will indeed remain an engine for global growth for decades to come. And you helped make that possible. I am honored by the ways you stepped up to accomplish everything that I asked of you—and everything the region needed from us. I am in awe of what you have achieved. And my trust in you will never fade.

    I will step away now, but I know that the course we have navigated these past five years will take us to an even brighter future. I will be cheering for you every step of the way.

    And so, my dearest colleagues, my beloved friends and ADB family, thank you for a job well done. I wish you health, happiness, and good fortune on this unforgettable journey.

    Thank you.

    MIL OSI Economics

  • MIL-OSI Canada: Bill introduced to extend term of acting conflict of interest commissioner

    Legislation has been introduced to extend the appointment term of the acting conflict of interest commissioner until the next conflict of interest commissioner can be appointed.

    Without the proposed legislation, the office will become vacant before the next commissioner can be appointed. Victoria Gray, KC, was appointed to the acting role on Jan. 6, 2025. The term expires 20 sitting days of legislative assembly after the appointment date, on April 7, 2025, as per the Member’s Conflict of Interest Act.

    The search for a commissioner is carried out by a special committee of the legislature through a process that takes approximately six to eight months. Typically, this process would have been already underway, but it has been delayed due to the 2024 provincial general election and interregnum period. Government anticipates that the special committee will be struck imminently and will begin its work shortly.

    The commissioner is an independent officer of the legislative assembly of British Columbia. The commissioner serves five-year terms and provides advice to members of the legislative assembly concerning their obligations under the Members’ Conflict of Interest Act. The commissioner’s primary roles are:

    • to provide confidential advice to members about their obligations under the act;
    • to oversee the disclosure process, including meeting with each member at least annually to review the disclosure of the member’s financial interests; and
    • to respond to allegations that a member has contravened the act and conduct an inquiry if needed.

    Gray completed a five-year term as commissioner from Jan. 6, 2020, to Jan. 5, 2025. She sat on the B.C. Supreme Court from 2001 until 2017, after 19 years of practicing as a commercial litigator in Vancouver and teaching civil litigation at the Peter A. Allard School of Law at the University of British Columbia.

    Learn More:

    For information about the conflict of interest commissioner, visit: https://coibc.ca/

    To read about the appointment of Gray as acting commissioner, visit: https://news.gov.bc.ca/31886

    MIL OSI Canada News

  • MIL-OSI USA: Jefferson, How Healthy are U.S. Households’ Balance Sheets?

    Source: US State of New York Federal Reserve

    Thank you, Professor Ho for that kind introduction and for the opportunity to talk to the Vassar community.1 I am happy to be back on campus. As a teenager in Washington, D.C., I had the very good fortune that a high school counselor pushed me to apply to Vassar College. I was accepted, and I earned my bachelor’s degree here. Attending Vassar opened a wider variety of opportunities to me than I would have otherwise had available. But I encountered one problem: Vassar did not offer any banking or business courses, which is what I wanted to study. So, I enrolled in an economics class, figuring it was the next best thing. I was hooked, and I have been studying economics ever since.

    My time here as a student was transformative, and I was honored to have served on Vassar’s board from 2002 to 2022. Vassar is a vibrant intellectual community.
    To motivate the topic of today’s speech, let me begin by sharing with you briefly my assessment of the current state of the U.S. economy. The performance of the U.S. economy has been quite strong overall.2 Last year, gross domestic product grew at a solid pace of 2.5 percent. I see the labor market as being in a solid position, with job creation steady and the unemployment rate at 4 percent in January. Inflation has come down a great deal over the past two and a half years but remains somewhat elevated relative to our 2 percent target. Based on recently released data, it is estimated that the 12-month change in the personal consumption expenditures price index was 2.4 percent in January. Progress toward our 2 percent objective has been slow in the past year. I expect the path of inflation to continue to be bumpy. While a cumulative cut in the policy rate by 100 basis points last year has brought the stance of monetary policy closer to a neutral setting, monetary policy continues to be restrictive. I believe that, with a strong economy and a solid labor market, we can take our time to assess the incoming data to make any further adjustments to our policy rate.
    Household consumption grew by 3.2 percent over last year. Understanding the causes of the continued robustness in consumer spending is important because it accounts for two-thirds of overall economic activity. Therefore, any accurate forecast of future economic activity would need to get the growth in consumer spending right.
    Today, I will discuss one important factor behind the recent strength in consumer spending: households’ balance sheets—that is, their assets, such as stocks, bank accounts, and houses, and their liabilities, such as mortgages, car loans, and other forms of borrowing. At first glance, households appear to be in a strong financial position. Overall, American households currently possess a very high level of wealth that is driven by elevated house values, relatively low overall debt levels, and a strong stock market.
    Asset performance and the amount of debt, however, explain only part of the picture. The health of household finances also depends on the cost of new and existing debt and the availability of credit. Household balance sheets are an important factor behind the recent strength in consumer spending. That said, some households may have a difficult time weathering unexpected costs or economic shocks. Looking at a variety of indicators across the income distribution shows that, while, in aggregate, household balance sheets are indeed strong, low- and middle-income households, and those with lower credit scores, may be stretched.
    The remainder of my talk is organized as follows. I will begin by discussing household wealth, both in aggregate and across the distribution of income. Then, I connect elevated wealth to recent spending patterns. After that, I discuss the assets side of household balance sheets. Then, I turn to liabilities, including the cost of servicing debt. Next, I discuss households’ ability to get new credit and the cost of such credit. Before concluding, I discuss the role of households’ balance sheets in the transmission of monetary policy.
    Overall Household Wealth and Its Implications for SpendingLet me now turn to the overall picture of household wealth. Figure 1 shows a stylized household balance sheet, with assets on the left and liabilities on the right. Net worth, also called wealth, is the difference between the two sides of the balance sheet—assets less liabilities—and it is a key indicator of households’ financial health. Relative to income, households’ net worth is near its highest level in the past 30 years. Total net worth in the U.S. was over $50 trillion higher in the third quarter of last year than it was at the end of 2019. After one accounts for inflation, this accumulation represents an increase in overall wealth of about 20 percent for U.S. households, as shown by the solid black line in figure 2.
    These recent gains in household net worth have been broad based across the income distribution. The net worth of low- and middle-income households—defined as the bottom 40 percent of the income distribution and shown by the dashed red line—has increased in line with aggregate net worth.3 Although these households account for 25 percent of total consumption, which is less than their population share, they are still key to the performance of the economy overall.
    Let me now turn to the implications of household net worth for our understanding of the recent strength in spending. Figure 3 shows the saving rate, which measures the share of disposable income—that is, income after taxes and government transfers—that households save rather than spend. The saving rate has fluctuated widely over the past few years. It rose during the pandemic, as many households received supplementary income support from the government and some cut back on spending. Then, households spent some of the savings that they had accumulated during the pandemic, leading the saving rate to fall to a relatively low level in 2022. The saving rate has recovered somewhat since then. Now, it hovers around 1 to 1.5 percentage points below its level before the pandemic, indicating that households are still spending more of their income than usual. It seems likely that elevated household wealth helps explain this higher-than-usual spending.
    Overall spending has been elevated, but how has high consumption been spread across the income distribution? Recent research shows that the spending of low- and middle-income households has lagged that of higher-income households over the past few years.4 As shown in figure 4, although real retail spending growth moved similarly for all households before the pandemic, it has diverged since the middle of 2021. Since then, spending for low-income households moved roughly sideways until the middle of last year, when it began to grow again. High-income households’ consumption, by contrast, has grown more consistently over this period.
    AssetsHaving discussed net worth and its implications for spending, now I drill down into the two components of net worth—household assets and liabilities. With regard to the asset side, elevated net worth largely reflects gains in two important asset categories: stock market holdings and real estate. Each category accounts for roughly one-fourth of households’ assets. The stock market valuation has increased at a very rapid pace over the past five years, leading to a $20 trillion rise in the value of households’ stock portfolios. As house prices rose, the value of households’ real estate has also increased by about the same amount.
    Real estate is a particularly important source of wealth for low- and middle-income households, comprising 40 percent of their net worth. Therefore, the growth in real estate wealth over the past five years accounts for a very significant share—over half—of the increase in these households’ overall wealth. That said, many low-income households do not own their home, and so they did not benefit from the growth in house prices. Equities comprise a smaller share of these households’ wealth, and so they account for only around 10 percent of the increase in their wealth.
    Wealth allows households to weather unexpected shocks, such as the loss of a job or a surprise bill; however, not all forms of wealth are quickly and easily accessible in case of such emergencies. It can be expensive for households to access the equity that they have in their homes. Also, much of households’ stock holdings are in retirement accounts that are difficult to liquidate. So, to understand how resilient households’ financial situations are, I also pay close attention to the most liquid components of their net worth, which include bank deposits and money market mutual funds. As the solid black line in figure 5 shows, in aggregate, households hold about 20 percent more of these liquid assets than they did before the pandemic. As the dashed red line shows, in contrast to the aggregate, low- and middle-income households have a slightly smaller liquid asset buffer than they did before the pandemic. This smaller buffer suggests that some of these households may not be as equipped to handle economic shocks as they were five years ago. That said, low- and middle-income households still hold more of these assets than they did 10 years ago, when many of them were still recovering from the Great Recession.
    On the whole, the asset side of households’ balance sheets paints a very healthy picture of their financial positions. Rising house and equity prices have increased net worth for households across the income distribution, and elevated asset valuations seem to help explain strong consumption growth last year.
    LiabilitiesLet me now turn to household liabilities—what households owe to their lenders. Figure 6 plots three major categories of household debt relative to disposable personal income.5 You see home mortgages, the largest share, at the bottom in blue; consumer credit, which includes credit cards, auto loans, student loans in orange; and other consumer loans in beige.6
    Total household debt rose through the 2000s and peaked around the time of the Global Financial Crisis of 2007 to 2009. It then began a slow decline as households “deleveraged.” The evolution of total debt is driven by mortgage debt, which currently accounts for about 60 percent of total household debt. Mortgage debt levels remain relatively subdued after rising somewhat during the COVID-19 pandemic, partly due to increasing home prices leading borrowers to take out larger loans.
    Figure 7 zooms in on revolving credit—largely, credit card balances—which is part of the previous “consumer credit” category.7 Balances were at about 7 percent of disposable income until the COVID-19 pandemic. Households reduced their spending—decreasing the need for credit card debt—and in part used income support programs to pay down existing credit card debt. The result was a nearly 3 percentage point drop in revolving credit relative to disposable personal income. As consumer spending rose and households began to take on more credit card debt, this ratio began to rebound in 2021 but remains about 1 percentage point below its pre-pandemic levels.
    Although levels of debt may be low, how costly is it for households to remain current on that debt? Figure 8 plots the debt service ratio, which is the amount of required debt payments relative to disposable personal income.8 Along with the fall in debt to which I just referred, this ratio plummeted during the initial stages of the COVID-19 pandemic. It has since risen, but it remains about 1 percentage point below its pre-pandemic level. That said, interest payments on revolving debt, which excludes mortgages, have risen over the past few years. The share of disposable personal income going to pay this interest rate is now slightly higher than it was just before the pandemic.
    Credit Availability and CostsSo far, I have discussed households’ current debt liabilities and how households are able to manage their current debt payments. Even households with elevated levels of assets may wish to obtain new credit. Policymakers and economists often ask, how easy is it for households, in general, to increase their borrowing, and at what cost?
    Lenders consider a range of factors in determining whether to supply credit and how much credit to extend. One key factor is the borrower’s “credit risk score.” These scores, which are calculated by private companies, use information on individuals’ past payment behavior and a variety of other factors to create a number that is predictive of their ability to repay debt.
    Figure 9 plots the fraction of individuals with credit risk scores in the subprime, near-prime, and prime categories since 2014. There has been a gradual increase in the fraction of borrowers with prime scores, in part reflecting the deleveraging that I referred to earlier, which is mirrored by the decline in the fraction with subprime scores. As you can see, the fraction of subprime scores took a sharp turn downward at the start of the COVID-19 pandemic. At that time, many people were able to use the pandemic-era income support programs to become current on their debt and otherwise boost their scores into near-prime and prime categories. This “credit score migration” helped many individuals obtain credit.9
    Before obtaining new credit, people may first turn to lines of credit that they already have—for example, credit cards. Figure 10 plots “utilization rates”—the ratio of credit card balances to credit limits—for subprime, near-prime, and prime consumers. Utilization rates fell for all three groups at the beginning of the pandemic but have risen since then and are now somewhat above their pre-pandemic levels for both subprime and near-prime borrowers. These groups may be reluctant to draw down their credit lines further.
    It can be challenging to determine the availability of new credit. While the total amount of credit that people have and their new borrowing can be observed, these quantities are determined both by lenders’ willingness to supply credit and borrowers’ demand for credit. Borrowers taking out fewer new loans may be due to a reduced supply of credit, lower demand for credit, or a combination of the two. Sometimes, however, one of these factors can be identified. For example, during the COVID-19 pandemic, reductions in household spending and increases in income support programs likely reduced the demand for credit, contributing to the decline in debt levels during that period.
    A more systematic method that we have used at the Federal Reserve to help disentangle credit supply from demand has involved questions in our Senior Loan Officer Opinion Survey, or SLOOS.10 This quarterly survey asks officials who oversee bank lending practices for their institutions about how they have changed loan underwriting standards over the past quarter for a variety of loan categories. “Loan underwriting standards,” also known more simply as lending standards, refers to the requirements that banks impose before extending a loan. For example, banks may establish minimum credit risk scores for potential borrowers to qualify for certain kinds of consumer borrowing. Banks that raise minimum credit scores are said to have “tightened” standards and those that lower them to have “eased” standards. Tightening standards likely reduces the supply of credit.11
    Because the SLOOS surveys commercial banks, its results are most informative for those loan categories for which banks do a substantial amount of lending. Hence, figure 11 shows survey results for consumer loans (credit card and auto loans), averaged together, weighting by balance sheet size.12 Banks make almost all credit card loans, and about one-third of auto loans. The figure plots the fraction of banks that have reported tightening less the fraction that have reported easing each quarter, weighted by the bank’s loan portfolio—so that plus-100 percent would indicate that all banks tightened, and minus-100 percent would indicate that all banks eased standards. For both credit cards and auto loans, banks eased standards in the early days of the pandemic but began to tighten them in 2022. More recent responses suggest that banks continued to tighten standards over 2024, making it more difficult for borrowers to obtain new loans. Although this tightening could limit growth in spending by those households that would need more credit cards to do so, recall that higher-credit-score borrowers are not close to exhausting their credit lines. In the most recent survey, banks have eased standards, which could support spending.
    Monetary Policy TransmissionNow, before I conclude, let me say a few things about how the Federal Reserve’s monetary policy has been affecting the cost of borrowing for households. The primary tool that the Federal Reserve uses to influence the economy is the federal funds rate. The Federal Open Market Committee (FOMC) meets eight times a year to discuss the appropriate setting of the committee’s target range for the federal funds rate. The FOMC’s objective when setting this range is to achieve its congressionally mandated goals of maximum employment and price stability. Changes in the FOMC’s target for the federal funds rate affect overall financial conditions through various channels, including its effect on interest rates that matter for consumers’ decisions to purchase houses and cars or borrow on their credit cards. For example, when the FOMC eases monetary policy—that is, reduces its target for the federal funds rate—the resulting lower interest rates on consumer loans elicit greater spending on goods and services. Higher spending can, in turn, lead prices to rise. Lower mortgage rates make buying a house more affordable and encourage existing homeowners to refinance their mortgages. Of course, the rates charged on longer-term loans, such as mortgages, are also affected by expectations of how monetary policy and the broader economy will evolve over the duration of the loans, not just by the current level of the federal funds rate.
    With respect to lending costs, the reductions in the target range for the federal funds rate last year have begun to pass through to rates on consumer borrowing. In the credit card market, interest rates are floating and are set as a fixed markup over the prime rate. By convention, the prime rate is equal to the upper end of the target range the FOMC sets for the federal funds rate, plus 3 percentage points.13 As seen in figure 12, auto loan and credit card rates have fallen in recent months, with the decline in the prime rate. Rates on auto loans are also influenced by the interest rates on shorter-maturity Treasury securities and risk spreads lenders assess to account for delinquencies and defaults. Auto loan rates have declined, thus far largely because of falls in risk spreads.
    In the U.S., mortgages are generally fixed rate and have a longer duration than most other forms of consumer borrowing. Consequently, rates on new and existing loans can differ substantially. As shown by the solid blue line in figure 13, the majority of households still have mortgages with rates below 4 percent that were set some time ago. But rates on new mortgages are elevated compared with the ranges observed since the 2007–09 financial crisis, with the current average 30-year fixed rate around 7 percent. As I noted earlier, mortgages’ long duration means their rates are driven more by longer-term interest rates, which are in turn determined by many factors beyond just monetary policy. Households who recently became homeowners or moved must bear the cost of paying elevated mortgage rates. As a result, many are not moving.14
    Overall, interest rates for many forms of consumer credit—with the notable exception of mortgages—have declined in recent months, starting to show the effects of the recent fall in shorter-term interest rates. Nonetheless, available data suggest that while new credit is available for households with higher credit scores and income levels, those households with lower credit scores and income levels are finding it relatively more difficult to obtain credit.
    ConclusionLet’s return to the title question: How strong are households’ balance sheets? Generally, households appear to be in a good position: Asset holdings are high across the income distribution, driven by high house and equity prices, and debt levels are subdued. Interest rates on some forms of debt have begun to come down, and required debt service is low as a share of income. That said, some households appear to be stretched. Lower-credit-score households’ utilization rates are elevated, and banks have tightened loan underwriting standards on some forms of credit. And even though, as a group, low- and middle-income households possess elevated levels of overall wealth, they have less of a buffer of liquid assets than they did before the pandemic. These indicators suggest that certain groups of households may have a hard time weathering unexpected costs or economic shocks.
    In closing, let me reiterate that it is important to monitor closely the strength of household balance sheets, which inform forecasts of overall economic activity. Strong balance sheets help support consumption spending, which in turn can help deliver the economic growth that puts the Federal Reserve in the best position to achieve its policy goals of maximum employment and price stability.
    ReferencesAladangady, Aditya, Jacob Krimmel, and Tess Scharlemann (2024). “Locked In: Rate Hikes, Housing Markets, and Mobility,” Finance and Economics Discussion Series 2024-088. Washington: Board of Governors of the Federal Reserve System, November.
    Bassett, William F., Mary Beth Chosak, John C. Driscoll, and Egon Zakrajšek (2014). “Changes in Bank Lending Standards and the Macroeconomy,” Journal of Monetary Economics, vol. 62 (March), pp. 23–40.
    Driscoll, John C., Jessica N. Flagg, Bradley Katcher, and Kamila Sommer (2024). “The Effects of Credit Score Migration on Subprime Auto Loan and Credit Card Delinquencies,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, January 12.
    English, William B. (2021). “The ‘Marketization’ of Bank Business Loans in the United States.” Working Paper, Yale School of Management, October.
    Goodman, Sarena, Geng Li, Alvaro Mezza, and Lucas Nathe (2021). “Developments in the Credit Score Distribution over 2020,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, April 30.
    Hacıoğlu Hoke, Sinem, Leo Feler, and Jack Chylak (2024). “A Better Way of Understanding the US Consumer: Decomposing Retail Spending by Household Income,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, October 11.

    1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
    2. For a detailed discussion on my recent views on inflation, see Philip N. Jefferson (2025), “U.S. Economic Outlook and Monetary Policy,” speech delivered at the Economics Department Special Lecture, Lafayette College, Easton, Pennsylvania, February 4; and for my recent views on the labor market, see Philip N. Jefferson (2025), “Do Non-inflationary Economic Expansions Promote Shared Prosperity? Evidence from the U.S. Labor Market,” speech delivered at Swarthmore College, Swarthmore, Pennsylvania, February 5. Return to text
    3. See Board of Governors of the Federal Reserve System (2024), “DFA: Distributional Financial Accounts,” webpage. These data provide quarterly estimates of the distribution of a comprehensive measure of U.S. household wealth. Return to text
    4. For more details, see Hacıoğlu Hoke, Feler, and Chylak (2024). Return to text
    5. Data are taken from Board of Governors of the Federal Reserve System (2024), Statistical Release Z.1, “Financial Accounts of the United States”. Return to text
    6. See Board of Governors of the Federal Reserve System (2024), Statistical Release Z.1, “Financial Accounts of the United States”. Return to text
    7. Data are taken from Board of Governors of the Federal Reserve System (2025), Statistical Release G.19, “Consumer Credit”. Return to text
    8. For the series and information on how it is computed, see Board of Governors of the Federal Reserve System (2024), “Household Debt Service Ratios”. Return to text
    9. For more discussion, see Goodman and others (2021) and Driscoll and others (2024). Return to text
    10. See Board of Governors of the Federal Reserve System (2025), “Senior Loan Officer Opinion Survey on Bank Lending Practices”. Return to text
    11. For an example of use of the SLOOS to help disentangle loan supply and demand, see Bassett and others (2014). Return to text
    12. The SLOOS results reported here are based on banks’ responses weighted by each bank’s outstanding loans in the respective loan category and might therefore differ from the results reported in the published SLOOS, which are based on banks’ unweighted responses. Return to text
    13. Before the establishment in 2008 of a range for the federal fund rate, the convention was to use the target for the federal funds rate plus 3 percentage points. See English (2021) for more discussion. Return to text
    14. See Aladangady, Krimmel, and Scharlemann (2024). Return to text

    MIL OSI USA News

  • MIL-OSI USA: ICE investigation leads to 8 criminal arrests and charges for Trinitarios gang members

    Source: US Immigration and Customs Enforcement

    BOSTON — An investigation led by U.S. Immigration and Customs Enforcement led to federal charges unsealed against two dozen leaders, members and associates of the Trinitarios gang — a violent transnational criminal organization. An ICE Homeland Security Investigations-led a task force arrested eight alleged gang members early Feb. 19, and 22 individuals have been charged with federal offenses, including racketeering conspiracy in connection with six murders and 11 attempted murders. Two individuals, who were juveniles at the time of the alleged criminal offenses, have been charged by the Essex County District Attorney’s Office with murder.

    The charges are the result of a multijurisdictional investigation that began in the aftermath of four murders, and a series of attempted murders and shootings that took place in Lynn, Massachusetts in 2023, allegedly committed by the Trinitarios criminal enterprise.

    According to court documents, Chapters of the Trinitarios were identified in in Lawrence, Lynn, Boston and Haverhill. Trinitarios members in these cities allegedly undertake efforts to dominate their communities by intimidating rival gangs and establishing control over certain neighborhoods. It is further alleged that the Trinitarios do not hesitate to use violence, including murder, to further the organization’s goals and purposes. According to the charging document, these gang rivalries develop through personal enmity and disrespect between members of the rival gangs, competition over drug territory and customers as well as violent acts (such as robberies, shootings and murders) that have been committed by the gangs against each other in the past. It is alleged that these rivalries have become deadly and multiple murders have been committed by Trinitarios gang members.

    Specifically, ICE HSI’s investigation allegedly identified that the Massachusetts Trinitarios have committed at least 10 homicides in Essex County over the past decade and are believed to be responsible for numerous attempted murders, shootings, kidnappings and robberies. Sixteen members of the Trinitarios criminal enterprise in Massachusetts have been charged with six of these murders — two of which took place in Lawrence in 2017 and two double murders in Lynn in 2023. The remaining four homicides are being prosecuted by the Essex District Attorney’s Office.

    “Today the message should be loud and clear: transnational criminal organizations and foreign-born malign actors committing violent acts in our communities will never have refuge in the United States. We are working every day with our state, local, and federal partners to tackle transnational crime from all angles with all of the resources available to us to make our streets safer,” said ICE HSI New England Special Agent in Charge, Michael J. Krol.

    According to the charging documents, the Trinitarios are a hierarchical criminal organization, with positions that are known to exist at the state and local chapter level, whose members adhere to a code of conduct. Enmanuel Paula-Cabral, aka “Nelfew,” aka “Gordo,” aka “Manny,” allegedly serves as the State Supreme of the Trinitarios for Massachusetts, responsible for the entirety of the gang’s criminal activities, coordination with other state leaders and communication with leadership of the Trinitarios in the Dominican Republic.

    Paula-Cabral is also allegedly responsible for the Trinitarios Chapter operating in Manchester, New Hampshire as well the Trinitarios located in Maine, where the gang operates a lucrative drug-trade. Below the Supreme is a position referred to as the “Flag” or “Segundo,” which in Massachusetts is allegedly held by Ery Jordani Rosario, aka “Racacha.”

    The Massachusetts Trinitarios allegedly recruit new members among communities of legal immigrants and illegal aliens from the Dominican Republic — specifically juveniles in local high schools in Lawrence and Lynn. To curry favor with these new recruits, the Trinitarios allegedly appeal to their shared Spanish language and culture, Dominican patriotism and use the appearance of prosperity and brotherhood.

    It is further alleged that members are generally initiated into the gang after a period of observation or probation and are often inducted following the completion of a “mission” — which is generally a substantial act of violence such as shootings, beatings, or fist fights with rival gang members that were the same age or stature. According to the court documents, upon induction, new members are formally “blessed” into the organization during a formal ceremony, are administered oaths by the State Supreme and are awarded with ceremonial beaded necklaces. Younger members are allegedly tasked with lesser roles during many violent “missions,” including standing lookout during a shooting, holding or concealing weapons on behalf of full members and transporting weapons after their use in shootings.

    According to the charging documents, the Trinitarios endeavor to project power over the internet and social media allegedly producing music and music videos featuring members in Trinitarios colors and clothing holding weapons, cash and other items, as well as lyrics that boast about violence, drugs and other criminal endeavors as warnings and threats to other rival gangs.

    “As the court papers make clear, for well over a decade, Trinitarios gang members have engaged in brazen acts of murder, assault, and drug distribution — instilling fear in the communities of Lynn and Lawrence in particular. Today’s law enforcement operation has struck a significant blow against the leadership of the Trinitarios operating in Massachusetts — virtually dismantling an organization responsible for years of bloodshed, drug trafficking, and lawlessness,” said United States Attorney Leah B. Foley. “This enforcement action ends the Trinitarios reign of terror in Massachusetts. Today, our communities are safer with the removal of these alleged violent offenders from our streets, and where appropriate, from our country. This operation is a testament to the tireless collaboration among the dedicated members of our federal, state and local law enforcement agencies. Such shameless and senseless acts of violence have no place anywhere; especially not in any city in Massachusetts. If you threaten the safety of our residents, we will find you, we will hold you accountable, and we will ensure that justice is served.”

    “This operation is another example of how the FBI and our law enforcement partners work together to dismantle large-scale, violent transnational criminal organizations that cause chaos and death in our communities. We believe those arrested today — leaders, members, and close associates of the Trinitarios – have allegedly shown a reckless indifference to human life in order to control their turf, push their poison, and make money. There is no question our streets are safer because of this takedown,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI’s North Shore Gang Task Force will continue to work on the public’s behalf to lock up these dangerous offenders who shatter folks’ sense of security and quality of life.”

    “Gang violence, as well as illegal gun and drug trafficking, have no place in the Commonwealth,” said Massachusetts State Police Colonel Geoff Noble. “Operations like this show the Massachusetts State Police is committed to working alongside our law enforcement partners to find those responsible for these crimes, arrest them, and pursue justice. Getting these criminals off the street makes Massachusetts a safer place to live.”

    “This investigation and the results represent the best of law enforcement partnerships. The residents of Essex County are safer today with the dismantling of this violent criminal enterprise,” said Essex County District Attorney Paul F. Tucker.

    “Today’s operation marks the culmination of an extensive investigation, demonstrating the strength of our collaborative efforts to combat gangs and violent criminal activity. These significant arrests will undoubtedly prevent further harm to our community. I want to express my deepest gratitude to our officers and our State and Federal law enforcement partners, the Essex County District Attorney’s Office and the Office of the United States Attorney for Massachusetts for their relentless pursuit of justice and for their commitment to making our city safer,” said Lynn Police Chief Christopher P. Reddy.

    “I commend the successful collaboration with the U.S. Attorney’s Office and Homeland Security Investigations,” says Manchester New Hampshire Police Chief Peter Marr. “By arresting multiple gang members involved in violent criminal activities throughout the region, we are reinforcing the commitment to making our community safer.”

    The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (also known as “racketeering conspiracy” or “RICO conspiracy”) provides for a sentence of up to life in prison, five years of supervised release and a fine of up to $250,000. The charge of conspiracy to interfere with commerce by robbery (Hobbs Act conspiracy) provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000.

    The investigation was led by ICE HSI New England’s Strike Force, Massachusetts State Police, the Essex District Attorney’s Office, the Lynn Police Department and the Manchester New Hampshire Police Department. Valuable assistance was provided by ICE Enforcement and Removal Operations, the U.S. Attorney’s Office for the District of New Hampshire; U.S. Customs and Border Protection; Federal Bureau of Investigations; and the Andover, Boston, Franklin, Lawrence, Peabody and Salem Police Departments.

    MIL OSI USA News

  • MIL-OSI Security: Ohio Woman Sentenced to Prison for Insurance Claim Fraud

    Source: Office of United States Attorneys

    CLEVELAND – Angela Frase, 60, of Sterling, Ohio, has been sentenced to 24 months in prison by U.S. District Judge Dan Aaron Polster after pleading guilty to four counts of mail fraud for accepting insurance checks after she knowingly submitted false claims. Frase was also ordered to pay restitution in the amount of $327,072.

    Frase pleaded guilty to devising a scheme that took place from July 2 to Aug. 23, 2019, to defraud a homeowner’s insurance company. According to court documents, the scheme began when Frase called fire emergency services on July 2, 2019, and again on July 3, 2019, to report a fire in her home. Fire marshals were unable to determine the cause of the fire at the time. The insurance company then housed Frase and her husband at an extended stay hotel. An investigation later conducted by insurance company experts determined no evidence of electrical failure as the cause of the fire.

    On the morning of Aug. 6, 2019, the fire department responded to a natural gas leak at the Frase residence. Home remodeling employees entered the home to work on the damage caused by the fire but were forced to evacuate due to the strong smell of natural gas. The fire marshal later determined that the stove was turned on, filling the residence with explosive-causing levels of natural gas. Frase and her husband were the last people in the home prior to the discovery of gas and claimed to have locked the doors. There was no sign of forced entry.

    On Aug. 6, 2019, at approximately 10:43 p.m., Frase left her extended stay hotel room, drove to her home on Spruce Street in Seville, Ohio, and started a fire. Investigators later learned through her cellphone location data that she remained in the area of her home from 10:54 p.m. until 11:39 p.m. and then returned to her hotel room. On Aug. 7, 2019, at approximately 12:36 a.m., the Sterling Fire Department and Wayne County Sheriff’s Office responded to the home in reference to a fire and explosion. The Ohio State Fire Marshal later determined the cause of the fire was incendiary in nature. In addition to starting the fire, Frase spray-painted what appeared to be racial disparities on her own garage and vandalized her neighbor’s vehicle.

    On Aug. 11, 2019, between 9:30 and 10 p.m., Frase returned to her home and again spray-painted hate speech on her own garage. When a sheriff’s deputy responded and discovered the words, Frase told the deputy that she saw two suspicious individuals running through the field behind her property. Three days later, on Aug. 14, Frase called authorities again after she placed a stuffed doll painted black with a noose tied around its neck in her own mailbox. On Aug. 23, she once again contacted law enforcement to report that she found an envelope at her residence while walking around the property that had a racial slur written on it and inside was a plastic bag filled with an unknown white substance and the word “die.”

    From Nov. 1, 2019 to June 17, 2020, the insurance company mailed four checks to Frase for property losses and damages which she accepted. She was later charged with four counts of mail fraud for attempting to swindle money from the homeowner’s insurance company through intentionally deceptive actions.

    This case was investigated by the FBI Cleveland Division, Wayne County Sheriff’s Office, and Ohio’s Division of State Fire Marshal. Assistant U.S. Attorney Scott Zarzycki for the Northern District of Ohio prosecuted the case.

    MIL Security OSI

  • MIL-OSI: Enovix Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the fourth quarter and full year 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the fourth quarter of 2024, we achieved key milestones in manufacturing, technology, and sales, setting the stage for a breakout year in 2025. We are focused on launching our first smartphone battery and converting our IoT pipeline into contracted backlog. Customers across multiple industries are acknowledging the readiness of our manufacturing capabilities, which are coming online at the perfect time to meet strong demand for our high energy-density solutions and diversified supply chain.

    Other recent highlights include:

    • Record Revenue: Fourth quarter revenues were a record $9.7 million, near the high end of our guidance. Full year 2024 revenues were also a record of $23.1 million, up 202%, from $7.6 million in 2023.
    • Smartphone Batteries: We shipped early engineering samples to our lead smartphone OEM, with results confirming that critical safety tests are passing. Additionally, cell dimensions were received in continuation of our agreement. We remain on track for commercial smartphone battery launches in 2025, pending successful completion of customer qualification. Furthermore, a new OEM customer submitted first samples purchase order, expanding our active engagements to 7 of the top 8 smartphone OEMs.
    • XR Batteries: Secured a landmark prepaid purchase order from a global technology leader in Artificial Intelligence (AI) and immersive technologies, reserving dedicated production capacity for next-generation smart eyewear. First samples, featuring our custom cells from Fab2 integrated into packs in our Korea facility, were delivered to the customer earlier this month.
    • Manufacturing Readiness: Fab2 in Malaysia completed Site Acceptance Testing (SAT) for the High-Volume Manufacturing (HVM) line, a key milestone in our journey to scale production. Additionally, we were honored to host several customers at our factory in Malaysia, conducting detailed line tours. And multiple OEMs initiated formal factory audits to support their qualification processes.
    • Products: We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. And the first EX-2M samples from Fab2 were shipped to customers on schedule.
    • Capitalization: 2024 year-end cash and cash equivalents of $272.9 million and continued operating expense discipline provides optionality for funding additional HVM lines.

    2025 is off to a fast start, fueled by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains. As a leader in high-energy-density battery technology with manufacturing facilities in Korea and Malaysia, Enovix is well positioned to capitalize on these industry trends.

    A key strategic decision in 2024 was to invest in the emerging AI-enabled smart eyewear market by developing a battery cell tailored for this market. We believe this investment is now paying off, as our product is expected to launch as this market is gaining momentum. New estimates from IDC project the smart eyewear market will reach multiple tens of millions of units by 2028, driven by recent hardware and software ecosystem advancements, the growing adoption of AI applications, and the expanding use cases across consumer, enterprise and defense markets. A majority of America’s largest tech companies, along with several top-tier Asia-based OEMs, have announced smart eyewear products. However, one major bottleneck remains – no product today delivers resiliency to all-day usage with ever-increasing sensor, communications (WiFi, Bluetooth, cellular, and satellite), and computing demands. This presents a prime opportunity for Enovix. With our high-energy-density battery already developed, HVM ramping up, and many of the market’s key players based in our backyard of Silicon Valley, we believe we are well-positioned to lead in this space.

    In smartphones, the strong tailwinds we identified last quarter continue in 2025. OEMs are increasingly requesting batteries with capacities near 7,000 milliamp-hours to support the growing power demands of next-generation AI applications. Additionally, with smartphone penetration already at saturation levels, market leaders are intensifying their focus on product differentiation – particularly in regions outside the US, where competition is fierce. We believe that our EX-2M and upcoming EX-3M battery solutions align with evolving demands, reinforcing our role as a strategic partner to leading OEMs.

    A new industry trend that has emerged subsequent to our last shareholder letter is supply chain-driven demand, particularly in the defense sector. Soon after the US elections in November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. As a reminder, a significant portion of our 2024 revenue came from sales of conventional graphite battery products to defense customers. Earlier this month, we secured a purchase order for samples from a new defense customer with over $1 billion in annual sales to the US military, focused on autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside.

    Business Update

    Manufacturing. We successfully completed our key fourth-quarter objectives on schedule, including SAT for the HVM line and shipping the first EX-2M samples. We also further improved yields across both the Agility and HVM lines, with incremental targets in place throughout the year that we believe will ensure readiness for smartphone mass production in the fourth quarter of 2025. Customer audits are now underway at our Malaysia facility. While preparing Fab2 for mass production remains our primary manufacturing focus in 2025, we are also prioritizing efforts to accelerate custom cell development timelines. Our initial success in the emerging smart eyewear market was made possible because we dedicated resources to making a new variant of EX-1M designed to fit within the confines of the glasses frames. As we scale, our ability to swiftly develop tailored solutions with precision manufacturing and latest chemistries will play a critical role in our success. Additionally, we continue to act in a disciplined manner to select the right customer opportunities to pursue for long-term growth.

    Commercialization. Our business team remains focused on smartphone mass production as the primary commercialization goal for 2025. In October of 2024, we took a major step toward this objective by executing a strategic partnership that outlined key milestones leading up to our entry into the smartphone market by late 2025. This agreement was followed by a purchase order in the fourth quarter of 2024 tied to one of those milestones, and in the first quarter of 2025 we received battery dimensions for a planned 2025 smartphone launch. Additionally, we secured a first purchase order for samples from a new global smartphone manufacturer, expanding our customer engagements to 7 of the top 8 smartphone OEMs.

    In addition to being focused on smartphone business, we are also being highly selective with IoT opportunities, prioritizing segments where our technology and global supply chain have a strong competitive advantage. Among these, smart eyewear emerged as a natural fit, and we are now in the process of developing custom cells for marquee customers. This quarter, we shipped our first samples to customers using our Korea-based packing capability that is now fully integrated with our silicon cell production out of Malaysia. Our first commercial shipments are scheduled to commence mid-year, and we are actively securing additional IoT purchase orders.

    In the EV space, we continue advancing development agreements with two of the world’s largest automotive OEMs. Consistent with our capital-efficient strategy, we remain focused on targeted collaborations that allow us to scale in this vertical while optimizing investment.

    Across these markets, our disciplined approach to commercialization ensures that we are not only securing near-term revenue opportunities but also building a foundation for long-term leadership in high-energy-density battery solutions.

    Products:

    Our battery technology continues to advance across multiple generations, with significant progress in safety and performance validation, customer sampling, and next-generation design. We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and received positive feedback. Additionally, EX-2M has outperformed traditional graphite-based cells in select safety tests such as crush and impact tests. We are now refining our electrochemistry to further enhance performance metrics. Looking ahead, we have officially kicked off the design phase for EX-3M. As we continue refining key performance specifications, we are incorporating feedback from lead OEMs to ensure alignment with their evolving requirements. Our goal is to finalize the EX-3M design in early 2025, paving the way for our next-generation battery technology.

    These advancements reflect our commitment to delivering high-performance, high-energy-density battery solutions across multiple product categories, reinforcing our position as a leader in battery innovation.

    Financials: Revenue was $9.7 million in the fourth quarter of 2024, near the high end of our guidance range and up more than 30 percent year over year. A majority of revenues were from our conventional battery capacity in South Korea which is seeing a positive demand environment from defense customers and benefiting from increased collaboration with our US engineers. Our GAAP cost of revenue was $8.7 million in the fourth quarter of 2024 leading to the Company’s first ever positive gross margin which totaled $1.1 million or 11% of sales.

    Our GAAP operating expenses were $35.6 million in the fourth quarter of 2024 compared to $48.6 million in the third quarter, which reflects some of the expense reductions related to our shift of various functions to lower cost regions such as Malaysia and India. Our non-GAAP operating expenses were $24.3 million in the fourth quarter of 2024, down from $27.2 million in the previous quarter.

    Our GAAP net loss attributable to Enovix was $37.5 million in the fourth quarter of 2024, compared to $22.5 million in the previous quarter. As a reminder our GAAP net loss is impacted quarterly by changes in fair value of common stock warrants, which resulted in a $5.1 million expense in the fourth quarter compared to a $29.9 million benefit in the third quarter of 2024.  

    Adjusted EBITDA in the fourth quarter of 2024 was a loss of $11.7 million compared to an adjusted EBITDA loss of $21.6 million in the previous quarter. The sequential improvement was driven by positive gross margin, lower operating expenses and a $1.0 million increase in depreciation and amortization.

    Earnings per share loss in the fourth quarter of 2024 was $0.20 on a GAAP basis and $0.11 on a non-GAAP basis compared to third quarter earnings per share loss of $0.30 on a GAAP basis and $0.17 on a non-GAAP basis.

    We exited 2024 with $272.9 million of cash and cash equivalents following the receipts of approximately $107 million of net proceeds from an equity offering in the fourth quarter which was partially offset by $16.0 million used in operating activities and capital expenditures of $16.4 million during the quarter.

    A full reconciliation of our GAAP to non-GAAP results is available later in this report.

    Outlook

    For the first quarter of 2025, we expect revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    The top milestones we identified at the beginning of 2024 were achieving SAT for agility and our high-volume manufacturing lines in Malaysia and delivering samples of our leading smartphone batteries, EX-1M and EX-2M, to customers. Not only did we hit these top milestones, we also advanced relationships with market leaders in smartphones, AR/VR, and automotive industries. We believe that these relationships, supported by purchase orders and commercial launch schedules, provide a clear path for us to commence mass production in 2025.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, February 19, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

    Non-GAAP Financial Measures

    Non-GAAP operating expenses, EBITDA, Adjusted EBITDA, non-GAAP net loss per share, and other non-GAAP measures are intended as supplemental financial measures of our performance that provide an additional tool for investors to use in evaluating ongoing operating results, trends, and in comparing our financial measures with those of comparable companies.

    However, you should be aware that other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides first quarter 2025 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, setting the stage, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, out expected performance and results for the first quarter of 2025; that 2025 will be a breakout year; the timing for completion of customer qualification for and the launch of our first smartphone battery in 2025; our expectations regarding our ability to commence mass production in 2025 and full utilization of the first HVM line in 2026; our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our high energy-density solutions and diversified supply chain, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our ability to develop and deliver a battery cell tailored to the smart eyewear market, including our ability to deliver a battery that delivers a full day of usage on a single charge, and the anticipated benefits of our investments in these products and market; our anticipated commercial shipments of batteries for smart eyewear and other IoT products by mid-year 2025; our ability to convert our IoT pipeline into contracted backlog; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets; our achievement of the milestones under our strategic partnership with a leading smartphone OEM; expectations relating to broader agreements with automative OEMs; our ability to successfully complete safety testing and customer qualification and our ability to and the timing of our entry into the smartphone market in 2025 with high-volume production from our Fab2 facility; our ability to meet our spec targets for energy density, cycle life and fast charging for our EX-1M cells; our ability to develop and commercialize customer and product-specific variants of our products and other tailored solutions for our customers; our expectations regarding EX-1M and EX-2M readiness and production, and predicted EX-3M battery solution production; our ability to meet goals for yield, throughput, energy density, cycle life and fast charging; the readiness of our production and manufacturing capabilities; our expectations with respect to the development and innovation of EX-2M and EX-3M, including our ability to finalize the EX-3M design in Q1 2025; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; our observations and expectations around supply chain-driven demand including in the defense sector, and interest from specific customer segments including drone manufacturers and military suppliers; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone, smart eyewear and virtual reality categories; expectations regarding the reservation and use of production capacity and our ability to satisfy production expectations relating to next-generation smart eyewear; our ability to meet milestones and deliver on our objectives and expectations; our ability to fund additional HVM lines; anticipated increases in demand and interest in our products from manufacturers and suppliers seeking battery solutions that comply with allied country supply chain requirements; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to capitalize on industry trends, including trends relating to accelerating AI innovation; our ability to manage and achieve the benefits of our restructuring efforts, including continued operating expense discipline to facilitate funding for additional HVM lines at Fab2; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density, cycle life, fast charging, capacity roll off and gassing metrics among our products; our reliance on new and complex manufacturing processes for our operations; our ability to establish sufficient manufacturing operations and improve and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; our reliance on a manufacturing agreement with a Malaysia-based company for many of the facilities, procurement, personnel and financing needs of our operations; our operation in international markets, including our exposure to operational, financial and regulatory risks, as well as risks relating to geopolitical tensions and conflicts, including changes in trade policies and regulations; that we may be required to pay costs for components and raw materials that are more expensive than anticipated, including as a result of trade barriers, trade sanctions, export restrictions, tariffs, embargoes or shortages and other general economic and political conditions, which could delay the introduction of our products and negatively impact our business; our ability to adequately control the costs associated with our operations and the components necessary to build our lithium-ion battery cells; our lengthy sales cycles; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market and our dependence on these customer accounts; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; our ability to develop, market and sell our batteries, expectations relating to the performance of our batteries, and market acceptance of our products; our ability to accurately estimate the future supply and demand of our batteries, which could result in a variety of inefficiencies in our business; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including tariffs, inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

    For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

     
    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
     
      December 29, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 272,869     $ 233,121  
    Short-term investments         73,694  
    Accounts receivable, net   4,566       909  
    Notes receivable, net   4       1,514  
    Inventory   7,664       8,737  
    Prepaid expenses and other current assets   9,903       5,202  
    Total current assets   295,006       323,177  
    Property and equipment, net   167,947       166,471  
    Customer relationship intangibles and other intangibles, net   36,394       42,168  
    Operating lease, right-of-use assets   13,479       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,126       5,100  
    Total assets $ 527,169     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 9,492     $ 21,251  
    Accrued expenses   19,843       13,976  
    Accrued compensation   8,228       10,731  
    Short-term debt   9,452       5,917  
    Deferred revenue   3,650       6,708  
    Other liabilities   3,036       2,435  
    Total current liabilities   53,701       61,018  
    Long-term debt, net   169,820       169,099  
    Warrant liability   28,380       42,900  
    Operating lease liabilities, non-current   13,293       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,784       10,803  
    Other liabilities, non-current   14       13  
    Total liabilities   277,766       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 190,559,335 and 167,392,315 as of December 29, 2024 and December 31, 2023, respectively   19       17  
    Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of December 29, 2024 and December 31, 2023, respectively          
    Additional paid-in-capital   1,067,951       857,037  
    Accumulated other comprehensive loss   (143 )     (62 )
    Accumulated deficit   (821,086 )     (598,845 )
    Total Enovix’s stockholders’ equity   246,741       258,147  
    Non-controlling interest   2,662       2,956  
    Total equity   249,403       261,103  
    Total liabilities and equity $ 527,169     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years Ended
      December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    Revenue $ 9,717     $ 7,381     $ 23,074     $ 7,644  
    Cost of revenue   8,665       19,769       25,119       63,061  
    Gross margin   1,052       (12,388 )     (2,045 )     (55,417 )
    Operating expenses:              
    Research and development   22,433       34,582       124,506       88,392  
    Selling, general and administrative   13,135       17,807       74,311       79,014  
    Impairment of equipment                     4,411  
    Restructuring cost               41,807       3,021  
    Total operating expenses   35,568       52,389       240,624       174,838  
    Loss from operations   (34,516 )     (64,777 )     (242,669 )     (230,255 )
    Other income (expense):              
    Change in fair value of common stock warrants   (5,115 )     2,040       12,244       6,180  
    Interest income   2,587       4,128       12,332       14,070  
    Interest expense   (1,719 )     (1,629 )     (6,787 )     (4,456 )
    Other income (loss), net   2,463       (433 )     954       (304 )
    Total other income (loss), net   (1,784 )     4,106       18,743       15,490  
    Loss before income tax expense (benefit)   (36,300 )     (60,671 )     (223,926 )     (214,765 )
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Net loss   (37,452 )     (60,038 )     (222,534 )     (214,132 )
    Net gain (loss) attributable to non-controlling interests   13       (61 )     (293 )     (61 )
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    Weighted average number of common shares outstanding, basic   184,971,942       165,708,522       175,038,107       159,065,697  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    Weighted average number of common shares outstanding, diluted   184,971,942       165,708,522       175,038,107       159,575,555  
     
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
    (In Thousands) Fiscal Years
        2024       2023  
    Cash flows used in operating activities:      
    Net loss $ (222,534 )   $ (214,132 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   44,961       34,009  
    Stock-based compensation   58,837       69,452  
    Changes in fair value of common stock warrants   (12,244 )     (6,180 )
    Impairment and loss on disposals of long-lived assets   38,258       4,411  
    Others   448       703  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   (2,465 )     (370 )
    Inventory   1,073       4,509  
    Prepaid expenses and other assets   (2,211 )     (626 )
    Accounts payable   (7,970 )     6,096  
    Accrued expenses and compensation   3,016       1,977  
    Deferred revenue   (3,058 )     (3,860 )
    Deferred tax liability   (2,697 )     (813 )
    Other liabilities   (2,047 )     188  
    Net cash used in operating activities   (108,633 )     (104,636 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (76,188 )     (61,795 )
    Routejade acquisition, net of cash and restricted cash acquired         (9,968 )
    Purchases of investments   (31,812 )     (138,343 )
    Maturities of investments   106,621       67,150  
    Net cash used in investing activities   (1,379 )     (142,956 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stocks, net of issuance costs   107,192        
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (209 )     (69 )
    Payments of debt issuance costs         (5,917 )
    Purchase of Capped Calls         (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (7,079 )     (3,931 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   44,771       11,928  
    Proceeds from issuance of common stock under employee stock purchase plan   1,506       2,350  
    Repurchase of unvested restricted common stock   (4 )     (26 )
    Net cash provided by financing activities   150,749       159,585  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (1,169 )     154  
    Change in cash, cash equivalents, and restricted cash   39,568       (87,853 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 274,691     $ 235,123  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

    While we prepare our consolidated financial statements in accordance with GAAP, we also utilize and present certain financial measures that are not based on GAAP. We refer to these financial measures as “non-GAAP” financial measures. In addition to our financial results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures.

    We use non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing its operating performance and comparing its performance with competitors and other comparable companies. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest expense, income tax benefit, depreciation and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, impairment of equipment and other special items as determined by management which it does not believe to be indicative of its underlying business trends.

    Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (in thousands):

      Quarters Ended   Fiscal Years Ended
      December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Interest expense   1,719       1,629       6,787       4,456  
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Depreciation and amortization   7,544       24,009       44,961       34,009  
    EBITDA   (27,050 )     (34,972 )     (171,885 )     (176,239 )
    Stock-based compensation expense (1)   10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants   5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up         2,206       1,907       2,206  
    Impairment of equipment                     4,411  
    Restructuring cost (1)               41,807       3,021  
    Acquisition cost         158             1,273  
    Adjusted EBITDA $ (11,728 )   $ (23,028 )   $ (82,794 )   $ (102,415 )

    ________________________
    (1)
    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.


    Free Cash Flow Reconciliation

    We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe that this financial measure is useful to investors because it provides investors to view our performance using the same tool that we use to gauge our progress in achieving our goals and it is an indication of cash flow that may be available to fund investments in future growth initiatives. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (in thousands):

      Fiscal Years
        2024       2023  
    Net cash used in operating activities $ (108,633 )   $ (104,636 )
    Capital expenditures   (76,188 )     (61,795 )
    Free Cash Flow $ (184,821 )   $ (166,431 )

    Other Non-GAAP Financial Measures Reconciliation
    (In Thousands, Except Share and per Share Amounts)

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    Revenue   $ 9,717     $ 7,381     $ 23,074     $ 7,644  
                     
    GAAP cost of revenue   $ 8,665     $ 19,769     $ 25,119     $ 63,061  
    Stock-based compensation expense     (124 )     (459 )     (320 )     (5,460 )
    Inventory step-up           (2,206 )     (1,907 )     (2,206 )
    Non-GAAP cost of revenue   $ 8,541     $ 17,104     $ 22,892     $ 55,395  
                     
    GAAP gross margin   $ 1,052     $ (12,388 )   $ (2,045 )   $ (55,417 )
    Stock-based compensation expense     124       459       320       5,460  
    Inventory step-up           2,206       1,907       2,206  
    Non-GAAP gross margin   $ 1,176     $ (9,723 )   $ 182     $ (47,751 )
                     
    GAAP research and development (R&D) expense   $ 22,433     $ 34,582     $ 124,506     $ 88,392  
    Stock-based compensation expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Amortization of intangible assets     (416 )     (277 )     (1,664 )     (277 )
    Non-GAAP R&D expense   $ 16,935     $ 28,968     $ 97,989     $ 60,706  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 13,135     $ 17,807     $ 74,311     $ 79,014  
    Stock-based compensation expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (773 )     (536 )     (3,077 )     (536 )
    Acquisition cost           (158 )           (1,273 )
    Non-GAAP SG&A expense   $ 7,361     $ 11,289     $ 38,786     $ 40,981  
                     
    GAAP operating expenses   $ 35,568     $ 52,389     $ 240,624     $ 174,838  
    Stock-based compensation expense included in R&D expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Stock-based compensation expense included in SG&A expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (1,189 )     (813 )     (4,741 )     (813 )
    Impairment of equipment                       (4,411 )
    Restructuring cost (1)                 (41,807 )     (3,021 )
    Acquisition cost           (158 )           (1,273 )
    Non-GAAP operating expenses   $ 24,296     $ 40,257     $ 136,775     $ 101,687  

    ________________________
    (1)
    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    GAAP loss from operations   $ (34,516 )   $ (64,777 )   $ (242,669 )   $ (230,255 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Amortization of intangible assets     1,189       813       4,741       813  
    Inventory step-up           2,206       1,907       2,206  
    Impairment of equipment                       4,411  
    Restructuring cost (1)                 41,807       3,021  
    Acquisition cost           158             1,273  
    Non-GAAP loss from operations   $ (23,120 )   $ (49,980 )   $ (136,593 )   $ (149,438 )
                     
    GAAP net loss attributable to Enovix   $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants     5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up           2,206       1,907       2,206  
    Amortization of intangible assets     1,189       813       4,741       813  
    Impairment of equipment                       4,411  
    Restructuring cost (1)                 41,807       3,021  
    Acquisition cost           158             1,273  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )   $ (47,220 )   $ (128,409 )   $ (139,434 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.88 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.87 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  

    ________________________
    (1)
    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

    The MIL Network

  • MIL-OSI Global: The success of the Delta Flight 4819 rescue effort highlights the need for co-ordinated responses

    Source: The Conversation – Canada – By Jack L. Rozdilsky, Associate Professor of Disaster and Emergency Management, York University, Canada

    The day after the Delta Flight 4819 crash on Feb. 17 at Toronto Pearson International Airport, the damaged aircraft remained on the runway as the crash investigation ramped up.

    Whether it was due to luck, skill, heroism or aircraft design, the evacuation of passengers took place quickly and everyone aboard the ill-fated flight were able to exit the plane and make it on to the tarmac.

    Post-accident investigations will provide more details about what contributed to the accident, and the strengths and weaknesses of the emergency response. But one point is already obvious: the positive outcome speaks to the importance of the institutions and expertise that keep our aviation system safe overall.

    The response

    The response to Delta Flight 4819 air crash was an example of just how important inter-agency collaboration is in emergency response.

    Within minutes of the crash, not only were the airport’s firefighters on the scene to douse any flames and assist with the rescue of passengers, but other agencies were already providing aid. Mississauga Fire and Emergency Services sent six vehicles to the airport as part of the mutual aid effort.

    The news conference following the accident involving Delta Flight 4819 at Toronto Pearson Airport.

    Ornge, Ontario’s air ambulance system, also sent multiple units to the scene to help transport injured passengers to hospitals, aiding Peel Region paramedics who were also triaging passengers.

    Multiple agencies collaborated to save lives. This collaboration in emergency response isn’t developed on the fly, but instead follows a highly choreographed and practised set of plans.

    Both the airport and partner agencies maintain air crash emergency response plans that lay out the details of how help will be requested, where aid will arrive and how to scale up the response as needed.

    Preparation facilitates response

    A primary reason the air crash response worked so well was preparation. An important component of preparation at airports is regularly testing response plans and operations with specialized full-scale mock disaster exercises.

    In these exercises, airport response personnel work through scenarios that simulate emergencies. Real emergency equipment is tested, volunteer victims participate in search-and-rescue scenarios and theatrical make-up is even used to simulate injuries.

    These exercises serve multiple purposes, including increasing familiarity with the plan for responders and creating real challenges that will help to find any potential weaknesses in the plan before a real event.

    Practice saves lives

    Another less desirable way responses can be improved is for an actual disaster to happen. Actual air crash disasters force plans to be activated, require response actions to be taken, and — ideally — foster adaptive learning through hard-won experience.

    According to data from the Aviation Safety Network, there have been 23 aircraft accidents at or near Pearson Airport since 1939. As a testament to safety at Pearson, no casualties occurred in 18 of those 23 accidents.

    One past significant Pearson crash with no casualties is especially relevant to revisit now. In August 2005, Air France Flight 358 rolled off the runway during landing and caught fire.

    All 309 people on board evacuated and survived. An organizational analysis of the 2005 accident highlighted that the crash investigation report “praised the seamless tracking of events and communication between the parties involved” in response.

    Twenty years later, and Pearson CEO Deborah Flint said the crew, airport emergency workers and first responders mounted a “textbook response” to the Delta incident.

    An investigation begins

    While the immediate response may have been over fairly quickly after passengers were successfully evacuated, the mutual aid and collaboration between agencies will continue in the months ahead.

    The Transportation Safety Board (TSB) has already launched an investigation into the incident. The cockpit voice and flight data recorders have been retrieved from the wreckage, a key aspect in what will be a slow and methodical investigation.

    The integrity of the investigation depends on strong institutions and trust in experts. In the context of air crashes, lessons learned from these investigations are critical to improving airline procedures for maintaining safety, creating better regulation to avoid accidents in the first place and ensuring emergency systems are well prepared.

    Safety in aviation

    According to the most recent TSB data, the 2023 overall air transportation accident rate of 2.8 per 100,000 aircraft movements is among the lowest recorded by the federal agency since it began measuring in 2004.

    Within the first 24 hours after the Delta crash, a pivot from the emergency response phase to the investigation phase took place.

    It’s far too early to speculate on what the ultimate cause of the accident may have been. While learning about what contributed to the crash of Delta Flight 4819 is important, we can also seek comfort in the fact that air travel in Canada continues to be a safe activity for passengers.

    Jack L. Rozdilsky receives support for research communication and public scholarship from York University. He also has received research support from the Canadian Institutes of Health Research.


    ref. The success of the Delta Flight 4819 rescue effort highlights the need for co-ordinated responses – https://theconversation.com/the-success-of-the-delta-flight-4819-rescue-effort-highlights-the-need-for-co-ordinated-responses-250211

    MIL OSI – Global Reports

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

    Source: Office of United States Attorneys

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

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

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

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

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

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

    MIL Security OSI

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

    Source: Office of United States Attorneys

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

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

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

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

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

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

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

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

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

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

    MIL Security OSI

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

    Source: Office of United States Attorneys

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

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

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

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

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

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

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

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

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

    The FBI and IRS Criminal Investigation are investigating this matter.

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

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

    MIL Security OSI

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

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

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

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

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

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

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

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

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

    Lambie’s Instagram post drew hundreds of comments including:

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

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

    Higher pay for higher risk

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

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

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

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

    Compromised advice

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

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

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

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

    Lambie’s push for answers

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

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

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

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

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

    It’s the pollies that made this mess.

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

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

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

    Chris Wallace has received funding from the Australian Research Council.

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

    MIL OSI AnalysisEveningReport.nz

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

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

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

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

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

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

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

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

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

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

    A nation of sporting gamblers

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

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

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

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

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

    The gamblification of sport

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




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


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

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

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

    The response of and to the Murphy Report

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

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

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

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

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

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

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

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

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

    High-stakes horse trading

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

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

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

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

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

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

    Follow the money

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

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

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

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

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

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

    Gambling and the young voter

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




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


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

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

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

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

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

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

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

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Humans generate 62 million tonnes of e-waste each year. Here’s what happens when it’s recycled

    Source: The Conversation (Au and NZ) – By Sukhbir Sandhu, Associate Professor in Sustainability, University of South Australia

    Huguette Roe/Shutterstock

    In 2022, humans generated roughly 62 million tonnes of electronic waste – or e-waste. That’s enough to fill more than 1.5 million garbage trucks. And by 2030, that figure is expected to rise to 82 million tonnes.

    Australia is a huge contributor to this problem. Every year each Australian, on average, generates 20kg of e-waste, compared with the global average of 7kg per person.

    Less than one quarter of the world’s e-waste – which includes desktop computers, laptops, mobile phones, televisions, kitchen appliances, batteries and solar panels – is recycled. That means most of it ends up in landfill, which can result in major accidents. For example, earlier this month, a rubbish truck in Melbourne caught fire after a laptop battery that had been thrown in the garbage bin exploded.

    So what can be done to increase the amount of e-waste that’s recycled? And what actually happens during the e-waste recycling process?

    From breakdown to planned obsolescence

    The growing problem of e-waste is fuelled by both perceived and planned obsolescence.

    Perceived obsolescence happens when we discard functioning products in favour of newer models. For example, we buy the latest iPhone even though our current phone works fine.

    Planned obsolescence is when manufacturers “build in” a use-by date. One way they do this is by not offering software updates, which then renders an existing product incompatible with other, newer devices or presents cybersecurity risks.

    Of course, sometimes existing electronic products simply stop working, which forces us to buy a replacement.

    A multi-step process

    In Australia, the process of recycling e-waste starts with consumers delivering their e-waste to a designated collection centre.

    Some manufacturers offer trade-in programs where people can drop off their old phones and laptops at retail shops and get a small discount on a new product. Some councils also run services for periodic collection and offer drop-off centres for e-waste.

    The collection is followed by sorting and inspection of the discarded items.

    At this stage, the discarded electronic items are sorted based on the type of devices. Some devices can be refurbished and reused if they are still functional.

    Those that cannot be refurbished are dismantled.

    This involves separating the various components, such as circuit boards, batteries and wiring. Hazardous materials such as mercury and lead are removed, before recyclable and valuable materials are recovered. These include plastic and glass, as well as precious metals like gold and silver from the circuit boards.

    After purifying and refining, the recycled materials can be used in new electronics or put to other uses.

    According to the national waste report there are 535 facilities in Australia that accept e-waste. But only 20 facilities reprocess these for further recycling.

    This means much of Australia’s e-waste is exported to China, India and other Asian countries to be recycled.

    Less than one quarter of the world’s e-waste is recycled.
    SibFilm/Shutterstock

    Significant challenges

    There are significant challenges when it comes to recycling e-waste.

    Some are associated with consumer behaviour. For example, unlike kerbside recycling services for paper, glass and cardboard, recycling e-waste generally involves consumers making a special trip to a designated drop-off location. Accessing these locations involves extra effort and can be an inconvenience which deters people from recycling their e-waste.

    Also, compared to container deposit schemes, where people get paid to recycle their glass bottles and cans, there are generally no monetary incentives available for recycling e-waste.

    Concerns about data security also prevent some people from recycling their e-waste. People are often reluctant to recycle their computer, phones and other electronic items as they are worried their data could be stolen during the recycling process, even after they have deleted the files.

    The other set of challenges with recycling e-waste comes from the economic incentives for recycling. Recycling e-waste is complex and costly. The costs involved in recycling can often be higher than the price of raw materials. Hazardous wastes must also be disposed safely, which adds extra costs to the process.

    All of this makes it less attractive for businesses to recycle e-waste.

    The way forward

    Australia’s new circular economy framework is expected to provide a way forward for businesses to address some of these challenges.

    The framework seeks to double the rate at which Australia recovers, recycles and reuses materials by 2035, partly by providing direction and designing policies for businesses that encourage recycling.

    It’s also important for local governments to make it easier for people to recycle their e-waste.

    While it may not be cost effective for councils to have kerbside recycling for e- waste, they could place e-waste collection centres in local areas.

    Councils can also explore offering consumers incentives for e-waste recycling. These incentives can be monetary. But even non-monetary incentives, such as letting people know how their recycled e-waste contributes to addressing the bigger problem, can be a motivation.

    And finally, as consumers, it would help to remember that the best way to contribute to decreasing e-waste is to repair and reuse our existing products.

    Sukhbir Sandhu has received funding from Australian Research Council, European Union, and Green Industries SA.

    ref. Humans generate 62 million tonnes of e-waste each year. Here’s what happens when it’s recycled – https://theconversation.com/humans-generate-62-million-tonnes-of-e-waste-each-year-heres-what-happens-when-its-recycled-249842

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Canada: Premier Returns to Washington in Fight Against Tariffs

    Source: Government of Canada regional news

    Premier Tim Houston will return to Washington, D.C., this week on another important mission to exchange information with business and government representatives in the United States. The Premier will attend the National Governors Association winter meeting, where he will share information on the benefits of continuing current trade relations with the United States.

    “My meetings in Washington last week were productive, and I believe Americans are realizing the negative impact these tariffs would have on both sides of the border,” said Premier Houston. “We can’t take our foot off the gas – we must continue discussions on how this valued partnership has benefited both Canada and the United States. It is my sincere hope and my primary focus to avoid tariffs altogether and continue with a mutually beneficial trade relationship.”

    On February 12, a delegation of 13 premiers met with political and business leaders in Washington to remind them of how both countries significantly benefit from free trade. Premier Houston also continues to have discussions with other premiers and the federal government on efforts to remove interprovincial trade barriers, improve labour mobility and diversify to new markets.

    As part of Budget 2025-26, the Province will work to strengthen Nova Scotia’s self-reliance by investing in critical minerals, wind resources and the seafood sector, in addition to more money to grow the Nova Scotia Loyal program. The Province will also develop a comprehensive trade action plan to facilitate internal trade, enhance productivity and drive critical sectors with input from businesses and industry.


    Quick Facts:

    • Budget 2025-26 includes a $200 million contingency fund to help respond if the United States does impose tariffs that affect Nova Scotians
    • Canada is the top U.S. export destination for more than half of all goods produced in the United States.
    • motor vehicles, machinery, metals and minerals, and agri-food made up more than 50 per cent of U.S. exports to Canada in 2023
    • in 2024, Nova Scotia exports to the U.S. were $4.6 billion and imports were $528.3 million; the top exports were:
      • tires – $1.5 billion
      • fish and seafood – $1.2 billion
      • forest products – $430.4 million
      • agriculture and agri-food products – $278.6 million
      • plastics – $217.3 million
      • electrical machinery and equipment – $159 million
      • motor vehicles and parts – $132.7 million
      • machinery and mechanical appliances – $120.9 million
      • non-metallic mineral mining and quarrying (mostly gravel and gypsum) – $118.7 million
      • articles of iron and steel – $97.6 million
    • mission delegates are Premier Houston; Nicole LaFosse Parker, Chief of Staff and General Counsel; Sean Joudry, Principal Secretary; and Executive Deputy Minister Tracey Taweel

    Additional Resources:

    Budget 2025-26 – Unlocking Our Potential: https://news.novascotia.ca/en/2025/02/18/budget-2025-26-unlocking-our-potential

    Tariff Response survey hotline: https://news.novascotia.ca/en/2025/02/06/tariff-response-survey-hotline

    Council of the Federation newsroom: https://www.canadaspremiers.ca/newsroom/


    MIL OSI Canada News

  • MIL-OSI New Zealand: Serious crash, State Highway 3, Te Mapara

    Source: New Zealand Police (District News)

    State Highway 3 is expected to be closed for several hours following a serious single-vehicle crash.

    About 8.45am, emergency services were alerted to the crash. Initial indications suggest a van left the road and hit a tree between Maraetaua and Pukenui roads.

    One person is reportedly in a critical condition after being ejected from the vehicle, while another is in a moderate condition and is being extracted from the vehicle.

    The Serious Crash Unit is attending, and the highway is expected to be closed for some time. Motorists are advised to expect delays.

    ENDS

    Issued by the Police Media Centre

    MIL OSI New Zealand News

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

    Source: United Nations – Geneva

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Report.

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

    Presentation of Report

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

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

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

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

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

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

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

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

    Questions by Committee Experts

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

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

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

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

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

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

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

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

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

    Responses by the Delegation 

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

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

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

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

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

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

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

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

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

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

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

    Follow-Up Questions by Committee Experts 

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

    Responses by the Delegation

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

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

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

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

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

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

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

    Questions by a Committee Expert

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

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

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

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

    Responses by the Delegation

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

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

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

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

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

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

    Follow-Up Questions by Committee Experts

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

    Responses by the Delegation

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

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

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

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

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

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

    Questions by a Committee Expert

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

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

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

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

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

    Responses by the Delegation

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

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

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

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

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

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

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

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

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

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

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

    Follow-Up Questions by Committee Experts

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

    Responses by the Delegation

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

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

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

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

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

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

    Questions by a Committee Expert

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

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

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

    Responses by the Delegation 

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

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

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

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

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

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

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

    Follow-Up Questions by Committee Experts

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

    Responses by the Delegation

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

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

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

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

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

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

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

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

    Closing Remarks

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

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

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

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