Indian tender twisted to favour Italian firm: Prosecutors

BUSTO ARSIZIO, ITALY: Three brothers with family ties to a former head of the Indian air force helped to twist rules in a helicopter tender won by Italy's AgustaWestland, prosecutors alleged in an arrest warrant for a top Italian businessman.

Italian prosecutors said in the warrant reviewed by Reuters on Tuesday that two managers at AgustaWestland, a unit of defence group Finmeccanica, paid go-betweens to help it win the 2010 contract to supply 12 helicopters to India.

Part of these payments ended up with the three Indian brothers, Juli, Docsa and Sandeep Tyagi, whose cousin Sashi Tyagi was former Indian air force chief. None of the Tyagis has been accused of wrongdoing by officials in India.

In a growing corruption scandal, police arrested on Tuesday AgustaWestland's former chief executive Giuseppe Orsi, who now heads Finmeccanica Orsi and denies any wrongdoing over the 556-million-euro deal.

The case, which is still in its preliminary investigation phase, has rocked Italy before parliamentary elections on February 24-25, and also in India, the world's largest weapon importer.

Prosecutors in the northern town of Busto Arsizio, near AgustaWestland's headquarters, said Orsi hired US-born Guido Ralph Haschke, who was then a consultant for the Finmeccanica group, to lead dealings in India to secure the contract.

Haschke and his partner Carlo Gerosa, prosecutors said, had close ties with the Tyagi brothers.

Prosecutors allege that Orsi, along with the current chief executive of AgustaWestland Bruno Spagnolini, paid 400,000 euros in consultancy fees to Haschke and Gerosa. "Of this, 100,000 euros in cash were given to the Tyagi brothers," they said in the 65-page warrant.

The money went to the brothers to pressure Indian officials and help doctor the tender terms to favour the specification of AgustaWestland's helicopters, the prosecutors alleged.

The tender was changed to accommodate AgustaWestland by, among other things, lowering required altitudes where the helicopters could operate to 15,000 feet from 18,000 feet, "thus allowing AgustaWestland, which otherwise would not even have been able to present an offer, to take part in the tender", the warrant said.

The tender terms were also changed to introduce an engine failure flying test. This favoured AgustaWestland as its helicopters were the only ones in the tender operating with three engines.

Orsi's lawyer said his client denied distributing any money or pocketing a single euro, adding that the investigation did not provide any evidence of illicit payments. AgustaWestland said on Tuesday it supported Spagnolini who was placed under house arrest.

The warrant also covered Haschke and Gerosa. Neither has been arrested as they are in Switzerland. A lawyer for Haschke, contacted by reporters, declined to comment on the case while Gerosa could not be reached for comment.

Reuters was not immediately able to locate the Tyagi brothers, nor Sashi Tyagi.

Sashi Tyagi, head of India's air force from 2004-2007, in November told a news weekly that he had no memory of the issue. The warrant did not explain how Tyagi might have been involved in a deal completed after he had left his post.

The investigation into Finmeccanica, which started more than a year ago, is one of a series of corruption scandals in defence dealmaking in India. Defence minister A K Antony has ordered an inquiry into the deal to be conducted by the Central Bureau of Investigation, the country's federal police force.

The arrests over Indian bribery allegations come as Finmeccanica unit Alenia Aermacchi hopes to compete for a contract to supply over 50 military transport aircraft to India in competition with European aerospace group EADS.

According to specialist defence publication IHS Jane's, Alenia would build 40 of the 56 C-27J Spartan airlifters in India and use the same assembly line to meet future regional demand for tactical air transport.

The military arm of EADS subsidiary Airbus told Reuters last week it would offer its C295 military transport plane as an alternative, adding that manufacturers were waiting for a formal competition document from the Indian government.

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State of the Union: Obama Pushes Job Creation













Pursuing an aggressive and diverse early second-term agenda, President Obama turned his focus Tuesday night squarely to the economy, using his State of the Union address to unveil new government initiatives aimed at creating jobs.


The defining duty of the new Congress and new administration is to "reignite the true engine of America's economic growth -- a rising, thriving middle class," Obama said Tuesday night from the House chamber.


"That must be the North Star that guides our efforts," he said.


Obama's proposals had a familiar ring, including re-packaged economic ideas but also offering several bold new measures aimed at boosting the middle class.


None of the proposals would add to the deficit "by a single dime," Obama pledged, with costs offset by savings carved out in the budget and from money saved from ending two wars.


"It's not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth," Obama said.


For the first time as president, Obama called for raising the minimum wage from $7.25 to $9.00 an hour by 2015. He proposed to ensure future increases by indexing the minimum wage to inflation.


He proposed a national goal of universal pre-school education, an effort to help states provide tens of thousands of low- to middle-income four-year-old children access to quality public education from an earlier age.






Charles Dharapak/Pool/AP Photo











Obama: A Rising Middle Class Should Be 'North Star' Watch Video









Obama Wants Minimum Wage: 'A Wage You Can Live On' Watch Video









Obama Announces Afghanistan Troop Withdrawal Watch Video





And, to heal the nation's crumbling roads and bridges, Obama offered a $50 billion "fix it first" infrastructure program that would prioritize repair of existing structures before building new ones.


"Every day, we should ask ourselves three questions as a nation," Obama said. "How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?"


Answers to those questions, the president suggested, include redoubling investments in clean energy technologies -- a step which he said would both benefit the environment and reduce U.S. dependence on foreign oil.


"For the sake of our children and our future, we must do more to combat climate change," he said.


He called for doubling the amount of renewable electricity generation in the U.S. by 2020, and announced an energy version of his "Race to the Top" education program that would give states grants for the best energy efficiency programs.


Related: 7 Things Obama Says at Every State of the Union


In tandem with his economic focus, Obama announced the withdrawal of 34,000 U.S. troops from Afghanistan by this time next year, cutting in half the current force and marking a quickened pace for the final exit of U.S. combat forces by a 2014 deadline.


There are currently 66,000 U.S. troops serving in Afghanistan. Obama has vowed to bring nearly all of them home by the end of next year, though a small contingent will likely remain to train Afghan forces and assist counterterrorism operations, officials have said.


Obama touched briefly on his recently-unveiled proposals to overhaul the nation's immigration system, expand rights for gay and lesbian Americans and curb an epidemic of gun violence.


With dozens of victims of gun violence looking on from the House gallery, including former Rep. Gabby Giffords, and families of victims from shootings at Newtown, Conn., Oak Creek, Wisc., and Aurora, Colo., Obama made an emotional plea for an up-or-down vote on his gun control plan.


"Each of these proposals deserves a vote in Congress," he said of proposed restrictions on assault-style weapons and high capacity magazines, and enhanced background checks, among other measures.


"If you want to vote no, that's your choice," he said. "But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations and anniversaries have been stolen from our lives by a bullet from a gun."


Read More: President Obama's Past State of the Union Promises






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Impact of State of Union speeches isn’t very lasting



What isn’t guaranteed is any lasting impact.


Rarely have State of the Union addresses moved public opinion, and rarely have they led to the kind of broad legislative accomplishments that presidents propose. For all the ritual and attention surrounding these speeches, the State of the Union is, well, sort of lame.

“Most of the speeches can be summarized in three words: boring, boring, boring,” said Allan Lichtman, author of “The 13 Keys to the Presidency.” “They tend to be laundry lists. But sometimes they rise above that.”

Mandated by the Constitution, the State of the Union, for much of its history, was not a speech at all but a written list of policy recommendations handed to Congress. Now, the addresses are grand political theater and provide a rare chance for a president to make an unfiltered argument and lay out policy ambitions from the biggest bully pulpit he will have all year.

Billed as a coda to his second inauguration, Obama’s speech will focus on the economy and the middle class — he is set to propose spending public money on education, research and infrastructure — as well as touch on immigration and gun control.

He will spend the remainder of the week giving repackaged versions of his address, looking to capi­tal­ize on the moment and further underscore his priorities.

“The State of the Union is a Super Bowl-like political event. The key to fully leveraging it is to make sure that it doesn’t become a one-off but contains a big-idea thematic animated by some specific proposals,” said Chris Lehane, a Democratic strategist who worked for President Bill Clinton. “If the speech is not approached like that, it risks becoming a pupu platter moment — lots of tasty dishes, but you won’t be filled up for the long term.”

Although interest groups and lobbyists, inside and outside the administration, spend time trying to get the briefest of mentions of their pet causes in the speech before an audience of about 40 million, there are few legislative payoffs to show for all their efforts.

President George W. Bush used the first State of the Union speech of his second term to call for privatizing Social Security, an effort that hit a brick wall in Congress and nationwide.

In his 2012 speech, Obama proposed that every state require that students stay in high school until they graduate or turn 18, a recommendation that also fell flat.

Obama used that address to make his argument for reelection, touching on themes of fairness and economic equality that would undergird his campaign stump speeches. But there have been few memorable lines or themes from Obama’s addresses on par with Clinton’s 1996 pronouncement that “the era of big government is over” or Bush’s “axis of evil” reference from 2002.

“His speeches have tended to be about half looking back and half looking forward. And that’s a style you can choose in a State of the Union — how much of the speech is going to be devoted to where we are today, how far we’ve come and so forth, versus something more visionary and using your time to look forward,” said Chriss Winston, a speechwriter for President George H.W. Bush. “That’s a choice every president has to make.”

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Sri Lanka drops IMF loan bid over spending dispute






COLOMBO: Sri Lanka on Tuesday dropped plans for a fresh $1.0-billion loan from the International Monetary Fund following disagreements over how the money should be spent, the central bank said.

The government announced last month that it was seeking a new cash infusion from the IMF after drawing down a previous $2.6-billion bailout loan six months ago.

"Sri Lankan authorities have decided not to pursue a new programme with the IMF, but to continue maintaining the close relationship with the Fund under standard consultation processes similar to many other member countries," the central bank said.

Treasury chief Punchi Banda Jayasundera had said he wanted the new IMF loan to spend on infrastructure while the US-based lender was only willing to hand over money to bolster the bank's foreign reserves.

"The IMF has indicated that the Fund may not be in a position to consider any direct or indirect budget support to Sri Lanka," the bank statement said.

Money for foreign reserves is not meant for immediate spending, but serves to enhance a country's creditworthiness.

An IMF team is currently in Colombo conducting annual consultations with Sri Lankan authorities.

The 2009 IMF bailout was secured when Sri Lanka's foreign reserves crashed to a dangerously low level of $1 billion. They now stand at a comfortable $7 billion.

The bank also announced on Monday that Sri Lanka's new taxes on cars and luxury goods had helped reduce imports last year and narrow the huge trade deficit.

Faced with a balance of payments problem in 2011, the government hiked car imports by up to 300 per cent, stopped credit for luxury imports and allowed the local currency to depreciate sharply by nearly 20 per cent.

The government has revised down its growth estimate for 2012 from 7.2 per cent to 6.5 per cent.

Sri Lanka's economy grew 8.3 per cent in 2011, up from 8.0 per cent in 2010, the first full year after government forces crushed Tamil rebels bringing an end to the island's ethnic war.

- AFP/ck



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UP CM Akhilesh to meet Allahabad stampede victims today

ALLAHABAD: Uttar Pradesh chief minister Akhilesh Yadav will visit Allahabad on Tuesday to meet those injured in the stampede at Allahabad railway station.

He is also expected to take stock of relief operations for the Kumbh pilgrims.

Expressing grief over the tragedy, Yadav had earlier on Monday said that the priority of his government was to ensure safety of devotees at the Kumbh Mela.

"The most important issue for the government and the officials is to ensure that rest of the people, who are stranded at railway station or staying at the Kumbh after taking dip, should reach their home safely and without any harassment," he told media in Etawah town.

Azam Khan, a senior cabinet minister in the Akhilesh Yadav-led Samajwadi Party Government (SP) Government, resigned as the head of Kumbh Mela Management Committee on 'moral grounds' yesterday.

"The incident has hurt me. I, taking moral responsibility, have decided to tender resignation as the head of the Kumbh Management Committee. I have conveyed his message to the chief minister and you (reporters) as well," he told media in Moradabad.

The Uttar Pradesh government has ordered an inquiry into the stampede, and asked the railways to make proper arrangements to clear rush of devotees. The Uttar Pradesh government has also sanctioned an ex-gratia of Rs 5 lakh to the kin of each of the dead persons.

At least 36 people lost their lives and over 40 others got injured in the stampede that broke out at the Allahabad railway station on Sunday night. The injured are being treated at the railway hospitals and the SRN Hospital in Allahabad. It is, however, feared that the death toll may go up since the condition of some of the injured is said to be in a critical condition.

The stampede occurred at platforms 5 and where thousands of passengers, mostly Mahakumbh devotees returning after taking the holy dip at the Sangam, had gathered to board a train.

The preliminary reports said that the stampede broke out when the railing leading to a footbridge collapsed.

Railways minister PK Bansal, however, yesterday ruled out the collapse of footbridge or any railing on the railway station as the cause for stampede.

Bansal claimed that arrangements at the railway platform were adequate. He also announced compensation of Rs 1 lakh to the families of the dead, 50,000 to those having grievous injuries and 25,000 to those injured.

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Kumbh Mela: Pictures From the Hindu Holy Festival








































































































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North Korean Tremor Raises Fear of Nuke Test













A large tremor measured at magnitude 4.9 was detected in North Korea and governments in the region scrambled to determine whether it was a nuclear test that the North Korean regime has vowed to carry out despite international protests.


Japan's prime minister has called an urgent security meeting, according to chief government spokesman Yoshihide Suga, and South Korea raised its military alert level, the AP reported.


Suspicions were aroused when the U.S. Geological Survey said it had detected a magnitude 4.9 earthquake Tuesday in North Korea.


The Comprehensive Test Ban Treaty Organization told ABC News, "We confirm that a suspicious seismic event has taken place in North Korea." The agency said it was trying to confirm the nature of the tremor.


"The event shows clear explosion-like characteristics and its location is roughly congruent with the 2006 and 2009 DPRK (North Korea) nuclear tests," said Tibor Toth, executive secretary of the organization.










North Korea Threatens More Nuclear Tests, Warns U.S. Watch Video







"If confirmed as a nuclear test, this act would constitute a clear threat to international peace and security, and challenges efforts made to strengthen global nuclear disarmament and non-proliferation," Toth said in a statement on the organization's web site.


Kim Min-seok, a South Korean Defense Ministry spokesman, told reporters that North Korea informed United States and China that it intended to carry out another nuclear test, according to the AP. But U.S. officials did not respond to calls from ABC News Monday night.


The seismic force measured 10 kilotons, according to Min-seok.


"Now that's an absolutely huge explosion by conventional terms. It's a smallish, but not tiny explosion by nuclear terms. It's about two-thirds the size of the bomb that the U.S. dropped on Hiroshima," James Acton, a Senior Associate at the Carnegie Endowment for International Peace, told ABC News.


North Korea threatened in January to carry out a "higher-level" test following the successful Dec. 12 launch of a long range rocket. At the time, North Korea's leader Kim Jong-Un said his country's weapons tests were specifically targeting the United States.


The suspicious tremor comes just hours before President Obama is to give the State of the Union address, and it marks the first diplomatic test in the region for new Secretary of State John Kerry.


China, North Korea's main ally in the region, has warned North Korea it would cut back severely needed food assistance if it carried out a test. Each year China donates approximately half of the food North Korea lacks to feed its people and half of all oil the country consumes.



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Being first lady’s guest at speech can yield positive and sometimes unexpected results



White House staffers will have coached those sitting in the gallery with Michelle Obama that at any moment the cameras might pan from the president’s podium to where they sit in the balcony. So they will watch their posture, stifle yawns and skip the chewing gum.


The everyday Americans invited to accompany the first lady as she watches her husband address Congress and the nation are essentially given roles by the White House. They are the human faces of the messages the president delivers, whether about the ingenuity of small business or the plight of returning troops.

This year, the president will focus on the economy and discuss issues such as gun control and immigration. A White House official said that victims of gun violence will be seated with the first lady, as will members of the middle class who would benefit from policy proposals that Obama will unveil, military families, and people working on immigration issues.

The speech will probably run an hour or so, and the next day, most guests will find themselves, Cinderella-like, back at their jobs and in schools and homes across the country.

Previous guests have found that the effects of the evening linger — in positive and sometimes tough or unexpected ways.

Attending the 2010 speech was a “game-changer” for Trevor Ya­ger. The founder of TrendyMinds, an Indianapolis-based advertising and public relations firm, Yager was invited, he says, to represent gay business owners thriving in a tough economy.

The attention he received — the local TV interviews, the national stories — caused a rift with a business partner. Soon after his return from Washington, the partnership dissolved, he said.

“There were jealousy issues,” Yager said. “When you have something like this come along, you do see people’s true colors.”

There were major benefits, too. He credits the exposure from attending the speech with the growth in his business. Trendy­Minds has grown from six or seven employees to 29. “All the coverage and attention helped attract clients and opened doors for us,” he said.

For Julia Frost, being a guest in 2010 complicated an already difficult relationship with her Republican father. The two are estranged, and although politics isn’t their only source of conflict, she says it contributes to the rift.

Growing up in a family of conservatives, Frost — who attended the speech as a veteran, a community college student and the wife of an active-duty Marine — says she’d always considered herself to be a Republican. But her visit to Washington made her question that.

She heard things from the president that she liked, about college and health care, and she was impressed by Obama’s demeanor.

“For a long time, I had been blindly following my family, but I saw that there was sense on both sides,” said Frost, who does not label herself a Democrat.

Another result of that night? She has a famous pen pal. Jill Biden, the wife of Vice President Biden, regularly corresponds with Frost. The women were seated together for the speech.

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"Babel" by Mumford&Sons wins best album Grammy






LOS ANGELES: "Babel" by British folk rockers Mumford&Sons won the coveted Album of the Year award at the 55th Grammy Awards on Sunday.

They beat "El Camino" by The Black Keys, "Some Nights" by fun., "Channel Orange" by R&B singer Frank Ocean and "Blunderbuss" by Jack White, at the climax of the music industry's biggest awards show.

The top prize largely came as a surprise after Mumford&Sons lost out in other key categories, although they took the Best Long Form Music Video for "Big Easy Express."

Mumford&Sons had been nominated for Grammys the previous two years, including for Record of the Year in 2012, but had not taken home a prize until Sunday.

"Somebody That I Used to Know" by Gotye featuring Kimbra won the coveted Record of the Year award.

The song beat "Lonely Boy" by The Black Keys, "Stronger (What Doesn't Kill You)" by Kelly Clarkson, "We Are Young" by fun., "Thinkin Bout You" by Frank Ocean and "We Are Never Ever Getting Back Together" by Taylor Swift.

Belgian-Australian Gotye had already won the 2013 best pop duo/group performance and best alternative music album for "Making Mirrors," his third studio album.

He was presented with the best record award by pop icon Prince. "We're pretty huge fans, we've grown up listening to his music...that's pretty cool," he said, speaking backstage.

"We didn't expect to win... There are so many amazing artists and pieces of music... it's a little bit flabbergasting," he added.

"Somebody That I Used to Know" has been a hit in several countries.

Indie pop band fun. won the best new artist prize at the awards, their second win in the top four categories.

The New York band had already taken the Best Song Grammy for "We Are Young" and are also shortlisted in Album of the Year category, although they fell short of a landmark clean sweep when Record of the Year went to Gotye.

For the best new artist award, fun. beat out high-selling R&B singer Frank Ocean, Americana rockers Alabama Shakes, folk band The Lumineers and country singer Hunter Hayes.

The members of fun. were joined at the Grammy ceremony by Lena Dunham, creator of the critically acclaimed dark comedy "Girls," who is said to be dating the band's guitarist Jack Antonoff.

Their beaten rivals in the best song category were Ed Sheeran for "The A Team," Miguel for "Adorn," Carly Rae Jepsen for "Call Me Maybe" and the songwriters of Kelly Clarkson's "Stronger (What Doesn't Kill You)."

The band topped Grammy nominations announced in December.

If they were to win all four of the major categories, it would mark the first such achievement in more than 30 years, according to The New York Times.

British songstress Adele won the Grammy for best pop solo performance, the first award handed out during the main event.

She also gave a typically straight-talking answer when asked how she is feeling about the Oscars later this month, where she is nominated for best song for the theme tune to Bond movie "Skyfall," admitting she was nervous.

The 24-year-old singer, who swept the board with six Grammys at last year's awards show, took the pop performance prize for a live rendition of her hit "Set Fire to the Rain."

"My good luck charm, J-Lo," she said as she accepted the award from Jennifer Lopez and Pitbull. "This is amazing. I wanted to come and be part of the night. I loved it last year, obviously," she added.

Last year she won best song, best record, best album for her breakthrough "21," best short video, best pop album and best pop artist, winning all six categories in which she was nominated.

Speaking backstage after accepting her award Sunday, Adele said it was less stressful this year than last, even though she is now a mother, having given birth in October.

"I've been up since 6:00 am so I'm quite tired," she told reporters, but added that, as a new mother "it's nice, I haven't been as stressed out... you have to prioritize what you stress about and worry about."

Here are the winners of the main categories at the 55th Grammy Awards:

Album of the Year: "Babel" - Mumford&Sons

Record of the Year: "Somebody That I Used To Know" - Gotye featuring Kimbra

Song of the Year: "We Are Young" - fun.

Best New Artist: fun.

Best Rock Song: "Lonely Boy" - The Black Keys

Best Rock Album: "El Camino" - The Black Keys

Best R&B Song: "Adorn" - Miguel

Best R&B Album: "Black Radio" - Robert Glasper Experiment

Best R&B Performance: "Climax" - Usher

Best Traditional R&B Performance: "Love on Top" - Beyonce

Best Urban Contemporary Album: "Channel Orange" - Frank Ocean

Best Pop Performance, Solo: "Set Fire to the Rain (live)" - Adele

Best Pop Performance, Duo or Group: "Somebody That I Used to Know" - Gotye featuring Kimbra

Best Pop Vocal Album: "Stronger" - Kelly Clarkson

Best Traditional Pop Vocal Album: "Kisses On The Bottom" - Paul McCartney

Best Rap Song: "Ni**as In Paris" - Jay-Z & Kanye West

Best Rap Album: "Take Care" - Drake

Best World Music Album: "The Living Room Sessions Part 1" - Ravi Shankar

Best Alternative Music Album: "Making Mirrors" - Gotye

Best Orchestral Performance: "Adams: Harmonielehre & Short Ride In A Fast Machine" - San Francisco Symphony

Best Opera Recording: "Wagner: Der Ring Des Nibelungen" - The Metropolitan Opera Orchestra, The Metropolitan Opera Chorus

Best Jazz Instrumental Album: "Unity Band" - Pat Metheny Unity Band

Best Country Song: "Blown Away" - Carrie Underwood

Best Country Album: "Uncaged" - Zac Brown Band

Best Hard Rock/Metal Performance: "Love Bites (So Do I)" - Halestorm

Best New Age Album: "Echoes of Love" - Omar Akram

- AFP/ir



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