• Business Day (South Africa): Emerging markets

aid received (FY 2007): $88,000 in grassroots projects and assistance to democracy and human rights programs.
PEOPLE AND HISTORY
A wide variety of ethnic groups live in The Gambia with a minimum of intertribal friction, each preserving its own language and traditions. The Mandinka tribe is the largest, followed by the Fula, Wolof, Jola, and Sarahule. Approximately 3,500 non-Africans live in The Gambia, including Europeans and families of Lebanese origin.
Muslims constitute more than 90% of the population. Christians of different denominations account for most of the remainder. Gambians officially observe the holidays of both religions and practice religious tolerance.
More than 63% of Gambians live in rural villages (1993 census), although more and more young people come to the capital in search of work and education. Provisional figures from the 2003 census show that the gap between the urban and rural populations is narrowing as more areas are declared urban. While urban migration, development projects, and modernization are bringing more Gambians into contact with Western habits and values, the traditional emphasis on the extended family, as well as indigenous forms of dress and celebration, remain integral parts of everyday life.
The Gambia was once part of the Ghana Empire and the Songhai Empire. The first written accounts of the region come from records of Arab traders in the 9th and 10th centuries A.D. Arab traders established the trans-Saharan trade route for slaves, gold, and ivory. In the 15th century, the Portuguese took over this trade using maritime routes. At that time, The Gambia was part of the Kingdom of Mali.
In 1588, the claimant to the Portuguese throne, Antonio, Prior of Crato, sold exclusive trade rights on The Gambia River to English merchants; this grant was confirmed by letters patent from Queen Elizabeth I. In 1618, King James I granted a charter to a British company for trade with The Gambia and the Gold Coast (now Ghana).
During the late 17th century and throughout the 18th, England and France struggled continuously for political and commercial supremacy in the regions of the Senegal and Gambia Rivers. The 1783 Treaty of Versailles gave Great Britain possession of The Gambia, but the French retained a tiny enclave at Albreda on the north bank of the river, which was ceded to the United Kingdom in 1857.
As many as 3 million slaves may have been taken from the region during the three centuries that the transatlantic slave trade operated. It is not known how many slaves were taken by Arab traders prior to and simultaneous with the transatlantic slave trade. Most of those taken were sold to Europeans by other Africans; some were prisoners of intertribal wars; some were sold because of unpaid debts, while others were kidnapped. Slaves were initially sent to Europe to work as servants until the market for labor expanded in the West Indies and North America in the 18th century. In 1807, slave trading was abolished throughout the British Empire, and the British tried unsuccessfully to end the slave traffic in The Gambia. They established the military post of Bathurst (now Banjul) in 1816. In the ensuing years, Banjul was at times under the jurisdiction of the British governor general in Sierra Leone. In 1888, The Gambia became a separate colonial entity.
An 1889 agreement with France established the present boundaries, and The Gambia became a British Crown Colony, divided for administrative purposes into the colony (city of Banjul and the surrounding area) and the protectorate (remainder of the territory). The Gambia received its own executive and legislative councils in 1901 and gradually progressed toward self-government. A 1906 ordinance abolished slavery.
During World War II, Gambian troops fought with the Allies in Burma. Banjul served as an air stop for the U.S. Army Air Corps and a port of call for Allied naval convoys. U.S. President Franklin D. Roosevelt stopped overnight in Banjul en route to and from the Casablanca Conference in 1943, marking the first visit to the African Continent by an American president while in office.
After World War II, the pace of constitutional reform quickened. Following general elections in 1962, full internal self-government was granted in 1963. The Gambia achieved independence on February 18, 1965, as a constitutional monarchy within the British Commonwealth. Shortly thereafter, the government proposed conversion from a monarchy to a republic with an elected president replacing the British monarch as chief of state. The proposal failed to receive the two-thirds majority required to amend the constitution, but the results won widespread attention abroad as testimony to The Gambia's observance of secret balloting, honest elections, and civil rights and liberties. On April 24, 1970, The Gambia became a republic following a referendum.
Until a military coup in July 1994, The Gambia was led by President Sir Dawda Kairaba Jawara, who was re-elected five times. The relative stability of the Jawara era was first broken by a violent, unsuccessful coup attempt in 1981. The coup was led by Kukoi Samba Sanyang, who, on two occasions, had unsuccessfully sought election to parliament. After a week of violence which left several hundred dead, President Jawara, in London when the attack began, appealed to Senegal for help. Senegalese troops defeated the rebel force.
In the aftermath of the attempted coup, Senegal and The Gambia signed the 1982 Treaty of Confederation. The result, the Senegambia Confederation, aimed eventually to combine the armed forces of the two nations and to unify economies and currencies. The Gambia withdrew from the confederation in 1989.
In July 1994, the Armed Forces Provisional Ruling Council (AFPRC) seized power in a military coup d'etat, deposing the government of Sir Dawda Jawara. Lieutenant Yahya A.J.J. Jammeh, chairman of the AFPRC, became head of state.
The AFPRC announced a transition plan for return to democratic civilian government. The Provisional Independent Electoral Commission (PIEC) was established in 1996 to conduct national elections. The transition process included the compilation of a new electoral register, adoption of a new constitution by referendum in August 1996, and presidential and legislative elections in September 1996 and January 1997, respectively. Foreign observers did not deem these elections free and fair. Retired Col. Yahya A.J.J. Jammeh was sworn into office as President of the Republic of The Gambia in November 1996. The PIEC was transformed to the Independent Electoral Commission (IEC) in 1997 and became responsible for registration of voters and conduct of elections and referenda.
In late 2001 and early 2002, The Gambia completed a full cycle of presidential, legislative, and local elections, which foreign observers deemed free, fair, and transparent, albeit with some shortcomings. President Yahya Jammeh, who was re-elected, took the oath of office again on December 21, 2001. The APRC maintained its strong majority in the National Assembly, particularly after the main opposition United Democratic Party (UDP) boycotted the legislative elections. President Jammeh was re-elected for a third five-year term on September 22, 2006 with 67% of the vote. The UDP received 27% of the vote, and instead of boycotting future elections, vowed to take part in the 2007 National Assembly elections. In the January 2007 parliamentary elections the ruling Alliance for Patriotic Reorientation and Construction (APRC) won 42 of the available 48 elected seats.
GOVERNMENT
The 1970 constitution, which divided the government into independent executive, legislative, and judicial branches, was suspended after the 1994 military coup. As part of the transition process, the AFPRC established the Constitution Review Commission (CRC) through decree in March 1995. In accordance with the timetable for the transition to a democratically elected government, the commission drafted a new constitution for The Gambia, which approved by referendum in August 1996. The constitution provides for a strong presidential government, a unicameral legislature, an independent judiciary, and the protection of human rights.
Local government in The Gambia varies. The capital city, Banjul and the much larger Kanifing Municipality have elected town and municipal councils. Five rural divisions exist, each with a council containing a majority of elected members. Each council has its own treasury and is responsible for local government services. Tribal chiefs retain traditional powers authorized by customary law in some instances.
Principal Government Officials
President-Yahya Abdulaziz Jemus Junkung Jammeh
Vice President-Isatou Njie-Saidy
Ambassador-designate to the United States-Tamsir Jallow
UN Representative-Omar Touray
The Gambia maintains an embassy at 1156 15th Street, NW, Suite 905, Washington, DC 20005. Tel. [phone]. Its UN mission is located at 820 2nd Avenue, Suite 900-C, New York, NY 10017. Tel. [phone].
DEFENSE
The Gambian national army numbers about 1,900. The army consists of infantry battalions, the national guard, and the navy, all under the authority of the Department of State for Defense (a ministerial portfolio held by President Jammeh). Prior to the 1994 coup, the Gambian army received technical assistance and training from the United States, United Kingdom, People's Republic of China, Nigeria, and Turkey. With the withdrawal of most of this aid, the army has received renewed assistance from Turkey and new assistance from Libya and others. The Gambia allowed its military training arrangement with Libya to expire in 2002.
Members of the Gambian military participated in ECOMOG, the West African force deployed during the Liberian civil war beginning in 1990. Gambian forces have subsequently participated in several other peacekeeping operations, including, inter alia, Bosnia, Kosovo, Democratic Republic of the Congo, Sierra Leone, Eritrea, and East Timor. The Gambia contributed 150 troops to Liberia in 2003 as part of the ECOMIL contingent. In 2004, The Gambia contributed a 196-man contingent to the UN Peacekeeping Mission in Darfur, Sudan. Responsibilities for internal security and law enforcement rest with the Gambian police under the Inspector General of Police and the Secretary of State for the Interior.
POLITICAL CONDITIONS
Before the coup d'état in July 1994, The Gambia was one of the oldest existing multi-party democracies in Africa. It had conducted freely contested elections every 5 years since independence. After the military coup, politicians from deposed President Jawara's People's Progressive Party (PPP) and other senior government officials were banned from participating in politics until July 2001.
The People's Progressive Party (PPP), headed by former president Jawara, had dominated Gambian politics for nearly 30 years. After spearheading the movement toward complete independence from Britain, the PPP was voted into power and was never seriously challenged by any opposition party. The last elections under the PPP regime were held in April 1992.
Following the coup in July 1994, a presidential election took place in September 1996, in which retired Col. Yahya A.J.J. Jammeh won 56% of the vote. The legislative elections held in January 1997 were dominated by the APRC, which captured 33 out of 45 seats. In July 2001, the ban on Jawara-era political parties and politicians was lifted. Four registered opposition parties participated in the October 18, 2001, presidential election, which the incumbent, President Yahya Jammeh, won with almost 53% of the votes. The APRC maintained its strong majority in the National Assembly in legislative elections held in January 2002, particularly after the main opposition United Democratic Party (UDP) boycotted the legislative elections.
President Jammeh won the September 2006 elections with 67% of the vote while the opposition alliance won a total of 27%. In the January 2007 parliamentary elections, Jammeh's APRC won 42 of the available 48 seats. While both the September and January elections were declared credible, several sources have reported increased oversight of journalists in the preceding months. A failed coup in March 2006 had a major effect on The Gambia's political climate. Since then President Jammeh has taken far-reaching steps to maintain power.
ECONOMY
The Gambia has a liberal, market-based economy characterized by traditional subsistence agriculture, a historic reliance on groundnuts (peanuts) for export earnings, a re-export trade built up around its ocean port, low import duties, minimal administrative procedures, a fluctuating exchange rate with no exchange controls, and a significant tourism industry.
Agriculture accounts for roughly 30% of gross domestic product (GDP) and employs about 80% of the labor force. Within agriculture, peanut production accounts for 6.9% of GDP, other crops 8.3%, livestock 5.3%, fishing 1.8%, and forestry 0.5%. Industry accounts for approximately 14% of GDP and services approximately 54%. The limited amount of manufacturing is primarily agriculturally based (e.g., peanut processing, bakeries, a brewery, and a tannery). Other manufacturing activities include soap, soft drinks, and clothing.
Previously, the U.K. and other EU countries constituted The Gambia's major domestic export markets. However, in recent years India, Thailand, and China have gained increasing proportions of Gambian exports. The African sub-region, including Senegal, Guinea-Bissau, and Ghana are also important trade partners. China and Brazil have become important source countries for Gambian imports. The U.K., other EU countries, and Senegal also command a large share of Gambian imports.
FOREIGN RELATIONS
The Gambia followed a formal policy of nonalignment throughout most of former President Jawara's tenure. It maintained close relations with the United Kingdom, Senegal, and other African countries. The July 1994 coup strained The Gambia's relationship with Western powers, particularly the United States, which until 2002 suspended most non-humanitarian assistance in accordance with Section 508 of the Foreign Assistance Act. Since 1995, President Jammeh has established diplomatic relations with several additional countries, including Libya, Taiwan and Cuba.
The Gambia plays an active role in international affairs, especially West African and Islamic affairs, although its representation abroad is limited. As a member of the Economic Community of West African States (ECOWAS), The Gambia has played an active role in that organization's efforts to resolve the civil wars in Liberia and Sierra Leone and contributed troops to the community's ceasefire monitoring group (ECOMOG) in 1990 and (ECOMIL) in 2003. It also has sought to mediate disputes in nearby Guinea-Bissau and the neighboring Casamance region of Senegal. The Government of The Gambia believes Senegal was complicit in the March 2006 failed coup attempt. This has put increasing strains on relations between The Gambia and its neighbor. The subsequent worsening of the human rights situation has placed increasing strains of U.S.-Gambia relations.
U.S.-GAMBIAN RELATIONS
U.S. policy seeks to build improved relations with The Gambia on the basis of historical ties, mutual respect, democratic rule, human rights, and adherence to UN resolutions on counter-terrorism, conflict diamonds, and other forms of trafficking. Following The Gambia's successful presidential and legislative elections in October 2001 and January 2002, respectively, the U.S. Government determined that a democratically elected government had assumed office and thus lifted the sanctions it had imposed against The Gambia in accordance with Section 508 of the Foreign Assistance Act as a result of the 1994 coup. U.S. assistance supports democracy, human rights, girls' education, and the fight against HIV/AIDS. In addition, the Peace Corps maintains a large program with about 100 volunteers engaged in the environment, public health, and education sectors, mainly at the village level.
Relations with the U.S. have not been improved significantly due to the human rights and freedom of press shortcomings, which resulted in the suspension of The Gambia's compact with the Millennium Challenge Corporation (MCC) in June 2006. The Gambia became eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA) on January 1, 2003.
Principal U.S. Officials
Ambassador-designate-Barry Wells
Deputy Chief of Mission/Chargé d'Affaires-Brian Bachman
Peace Corps Country Director-Michael McConnell
The U.S. Embassy in The Gambia is situated in Fajara on Kairaba Avenue, formerly known as Pipeline Road. Tel: [220] 4392856; fax [220] 4392475). The Peace Corps office also is on Kairaba Avenue near the embassy. (Tel. [220] 4392466). The international mailing address for the embassy is American Embassy, PMB 19, Kairaba Avenue, Banjul, The Gambia.
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov , where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov . For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml .
The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. [phone].
HTS annk 071210-1287422 NKUMAR
Document INDFED0020071216e3c1000jf

Factiva Energy Digest – Nov. 29, 2007.
1,424 words

29 November 2007

Factiva Energy Digest

RTEN

English

© 2007 Factiva, Inc. All rights reserved
OIL & GAS HEADLINES
* Mideast crude traders eye US pull after pipe blast
* Fire shuts key Canada-US pipeline, oil surges $4
* China fuel shortage spurring corn ethanol production
* Russian refineries restart, fuel remains pricey
* Canadian-US oil disruption not substantial-IEA head
* Syria lowers heavy crude price in Dec - trade
* Sanyo, Nippon Oil seek cost cuts via fuel cell jv
* Russia, Uzbekistan light flame at major gas field
* Total says gas fields off Indonesia come on stream
* Japan keen for deal on East China gas fields
* Old sore revived as Nigeria questions Bakassi deal
* Uzbekistan wants to raise Russia gas price
* Pakistan set to raise fuel prices, after 19 months
* Singapore Airlines raises fuel surcharges
* Expro says underlying H1 operating profit up 44%
* Verasun to acquire US BioEnergy in stock deal
POWER & UTILITY HEADLINES
* Japan's Marubeni taps green power market in U.S.
* Italy's Enel near 2 bln euro deal with EDF - FT
* E.ON to build coal-fired power plant for Antwerp
* Hyflux sees 5 yr stream of China projects
REGULATORY & ENVIRONMENT HEADLINES
* EIB hopes climate loan will spur change in China
**************************************
OIL & GAS
* Mideast crude traders eye US pull after pipe blast
SINGAPORE (Reuters) - Middle East crude traders are bracing for higher prices after a blast crippled the main pipeline shipping Canada's heavier crude to the U.S. Midwest, anticipating refiners may have to scramble for supplies.
Pipeline operator Enbridge shut down its network of four parallel pipelines that pump Canadian crude to the United States, and warned that the larger two lines carrying mainly medium and heavy grades could remain shut for a while.
* Fire shuts key Canada-US pipeline, oil surges $4
HOUSTON (Reuters) - An explosion crippled the main pipeline supplying Canadian crude to U.S. Midwest refineries on Wednesday, forcing operator Enbridge to halt nearly a fifth of U.S. imports and sending crude prices as much as $4 higher.
One of the set of four lines will require repairs and regulator inspections, while the largest is "not likely" to start up any time soon, Larry Springer, a spokesman for Calgary, Alberta-based operator Enbridge Inc, said on Thursday.
* China fuel shortage spurring corn ethanol production
BEIJING (Reuters) - China's serious shortage of oil products is prompting the country's ethanol makers to step up biofuel production, helping drive up corn prices despite an expected record harvest this year, traders said on Thursday.
China is facing its worst fuel crisis in four years in part because of record oil prices CLc1 for inputs and government-regulated price caps on refined products, which has led refiners to cut processing volumes.
* Russian refineries restart, fuel remains pricey
MOSCOW (Reuters) - Russia's biggest refineries are wrapping up a season of intensive maintenance, but oil product exports may not necessarily follow as the country faces a deficit of some fuels and export duty rises, traders said.
* Canadian-US oil disruption not substantial-IEA head
PARIS (Reuters) - The International Energy Agency head said on Thursday a pipeline outage that has halted a fifth of U.S. crude imports and added $3 to oil prices was not "substantial".
* Syria lowers heavy crude price in Dec - trade
LONDON (Reuters) - Syria lowered the official selling price of its heavy crude oil in December and raised the price of its light crude, a trading source said on Thursday.
* Sanyo, Nippon Oil seek cost cuts via fuel cell jv
TOKYO (Reuters) - Sanyo Electric Co Ltd, the world's No. 1 maker of rechargeable batteries, and Nippon Oil Corp said on Thursday they plan to set up a joint venture to design fuel cell systems for homes and cut development costs.
Nippon Oil will take an 81 percent stake in the venture, to be capitalised at 100 million yen ($908,100). The remaining 19 percent would go to Sanyo, which is trying to trim its loss-making operations with the help of shareholder Goldman Sachs.
* Russia, Uzbekistan light flame at major gas field
BUKHARA, Uzbekistan (Reuters) - Russia's LUKOIL officially started up output from a major gas field in Uzbekistan on Thursday in a project expected to contribute one fifth of the Central Asian state's gas output.
* Total says gas fields off Indonesia come on stream
PARIS (Reuters) - French oil major Total said on Thursday that phase 1 of the Sisi-Nubi gas fields offshore East Kalimantan in Indonesia had come on stream.
* Japan keen for deal on East China gas fields
TOKYO (Reuters) - Japan will call for an early solution to a feud with China over disputed gas fields when foreign ministers meet for broad-ranging talks in Beijing this weekend, a Japanese ministry official said.
* Old sore revived as Nigeria questions Bakassi deal
ABUJA (Reuters) - Nigerian politicians have reopened a debate about the handover to Cameroon of Bakassi, a peninsula which has offshore oil deposits, and diplomatic efforts are under way to avert a new crisis over an old dispute.
* Uzbekistan wants to raise Russia gas price
TASHKENT (Reuters) - Uzbekistan wants to charge Russia more for its gas supplies from next year and will negotiate a new deal in December, an Uzbek energy official said on Thursday.
* Pakistan set to raise fuel prices, after 19 months
KARACHI (Reuters) - Pakistan is expected to announce a rise in fuel prices on Friday, the first in 19 months, and analysts said the increase was bound to push up inflation while hitting economic growth.
* Singapore Airlines raises fuel surcharges
SINGAPORE (Reuters) - Singapore Airlines , the world's second largest airline by stock market value, said on Thursday that it would raise its surcharge on tickets due to rising jet fuel prices.
* Expro says underlying H1 operating profit up 44%
LONDON (Reuters) - British oil and gas field services company Expro International Group Plc said the outlook for its markets remained positive as it posted a 44 percent rise in underlying operating profit on Thursday. Expro said in a statement it made an operating profit before amortisation and exceptional items of 45.1 million pounds ($93 million) in the six months to end-September, on revenue up 30 percent to 295 million pounds.
* Verasun to acquire US BioEnergy in stock deal
NEW YORK (Reuters) - VeraSun Energy Corp said on Thursday that it would acquire US BioEnergy Corp in an all-stock deal, in a bid to expand its ethanol capacity.
**************************************
POWER & UTILITY
* Japan's Marubeni taps green power market in U.S.
TOKYO (Reuters) - Marubeni Corp , Japan's fifth-biggest trading company, said it had bought a 16-megawatt (MW) biomass power plant in the United States, raising its power generation capacity at such plants in North America to 50MW.
Marubeni, which has been beefing up its renewable energy business in the United States, bought the Hemphill Biomass plant in New Hampshire from Hemphill Power & Light Co for an estimated 1.5 billion yen ($14 million).
* Italy's Enel near 2 bln euro deal with EDF - FT
MILAN (Reuters) - Enel and France's EDF are close to a 2 billion euro ($3 billion) nuclear deal that will see the Italian utility taking up to 3 percent of the French power market, the Financial Times reported.
* E.ON to build coal-fired power plant for Antwerp
FRANKFURT (Reuters) - German utility E.ON plans to build a coal-fired power station in the Antwerp harbour area of Belgium, the company said on Thursday.
* Hyflux sees 5 yr stream of China projects
SINGAPORE (Reuters) - Singapore-listed water treatment firm Hyflux expects to clinch two water treatment projects per month on average in China for at least the next five years, its chief told Reuters on Thursday.
This would help the firm keep a five-year target for 30 percent annual profit growth until 2008, Hyflux founder and Chief Executive Officer Olivia Lum said in an interview.
**************************************
REGULATORY & ENVIRONMENT
* EIB hopes climate loan will spur change in China
BEIJING (Reuters) - The European Investment Bank hopes its loan to China to help it fight climate change will have a "demonstration effect" that could spur more greenhouse gas-reducing projects, the bank's president said on Thursday.
The 500-million-euro loan was signed at EU-China meetings in Beijing this week that concluded with an agreement to set up a dialogue to tackle a range of issues, from climate change to growing trade friction and the value of China's currency.
**************************************
Full versions of these and other energy stories are available from Factiva.com.
Document RTEN000020071129e3bt00001
News

Eruption of Corruption: Are Foreign Corrupt Practices Act cases coming to Silicon Valley? NEWS

By Zusha Elinson

923 words

26 November 2007

The Recorder

RECRDR

1

Volume 131st Year   228 www.callaw.com $2.00 MONDAY, NOVEMBER 26, 2007; Issue 228

English

Copyright 2007 ALM Properties, Inc. All Rights Reserved.
The Recorder
Bribing overseas officials used to just be the province of big oil companies — it recently cost Chevron $30 million to settle government charges that it paid illegal kickbacks to Iraq for oil.
But Bay Area lawyers say that local tech companies — especially those expanding overseas — could find themselves the targets of a crackdown on the shadier forms of negotiation sometimes used in foreign countries.
"The government's getting more focused on it, so our clients are getting more focused on it," said Craig Martin, a Morrison & Foerster partner in San Francisco.
The club that the government wields is the Foreign Corrupt Practices Act, which prohibits bribing foreign officials to get business. The Department of Justice has sent a clear message that the FCPA is a priority not only through public pronouncements but by upping the number of attorneys and FBI agents investigating violations. Thirteen cases have already been brought this year, compared to three in 2004, according to the Justice Department.
Two recent enforcement actions in the tech and private equity sectors were in Texas — but Silicon Valley could be next, said Palo Alto lawyer Ivonne Mena King, vice chairwoman of Foley & Lardner's white-collar defense and corporate compliance practice.
King points to the Vetco Gray, an oil company owned by private equity firms, which pleaded guilty in February to making $2.1 million in corrupt payments to Nigerian government officials and paid $26 million in fines as a result. She also cites Paradigm B.V., a software company in Houston that coughed up $1 million in September for improper payments made to government officials in China, Indonesia, Kazakhstan, Mexico and Nigeria.
King said investigators might do more than just dabble in these areas.
"The DOJ has been focusing on industry-wide investigations and has specifically said their goal is to focus on all industry sectors," King said. "Taking Vetco Gray, which implicates private equity owners, and Paradigm, it is very possible that Bay Area companies doing business abroad and private equity owners may be coming under more scrutiny than they have been previously."
A few Bay Area tech companies have already stood in the uncomfortable spotlight of an FCPA investigation.
UTStarcom Inc., an Alameda telecommunications company, is cooperating with the Justice Department and the Securities and Exchange Commission in connection with possible violations in Mongolia, Southeast Asia, India and China, according to regulatory filings. The company, which does a lot of business in Asia, first came under scrutiny in 2005 when the U.S. Embassy in Mongolia forwarded allegations that an agent of UTStarcom's Mongolia joint venture bribed government officials there.
Unscrupulous overseas partners, in-house and outside counsel say, are often the greatest liability in keeping out of FCPA trouble.
"It's very hard when you're not only responsible for yourself, but everyone in your supply chain," said Charles James, general counsel of San Ramon-based Chevron, at a recent panel discussion on the subject in San Francisco.
Chevron settled SEC charges earlier this month that the oil company made $20 million in illicit payments to third parties in Iraq, who used the money to bribe Iraqi officials to get oil contracts in 2001 and 2002. The SEC argued that Chevron knew, or should have known, where the money was going.
Cost of Doing (illicit) Business
The punishment for FCPA violations goes far beyond the fines themselves.
Micrus Endovascular Corp., a San Jose medical device company, agreed to pay a $450,000 penalty in February 2005 for suspicious payments made to physicians in several European countries. (Doctors who work for state-run hospitals are considered foreign officials).
But the real cost came to the company in footing the bill for the DOJ-ordered independent monitor for the following three years. Plus, if the company failed to comply in the two years following the fine, it would've automatically faced criminal charges.
Even though conducting an internal investigation and cooperating with the government can be costly, Justice officials say it'll cost companies more if they don't cooperate.
"Companies that voluntarily disclose can and do receive tangible benefits in a multitude of ways," said Alice Fisher, assistant U.S. attorney general, at an FCPA conference Nov. 13 in Virginia. "These obviously include a lesser fine — even below the sentencing guidelines. But they can also include the use of a deferred or non-prosecution agreement."
Still, Foley's King said it's better not to rush to disclose because of the serious implications it has. "I've seen some companies jump to the conclusion to disclose before they have any grasp of the facts," she said.
The best way to avoid getting caught up in FCPA violations is to be prepared, lawyers say. When dealing with a third party in a foreign country, whether it's a subcontractor or a target in an M&A deal, companies should do thorough due diligence. Some companies go as far as to demand the right to audit third parties' books.
Lawyers also urge their clients to set up anti-corruption programs at their companies. That's not just to prevent bribes from taking place — it can also weigh in your favor if something ever happens. If companies don't have such a program in place and get caught, "You are going to be eaten alive," King said.
Reporter Zusha Elinson's e-mail address is [e-mail].
Document RECRDR0020071127e3bq0000w
Roundup: Hong Kong stocks rebound 2.06 percent
509 words

23 November 2007

Xinhua News Agency

XNEWS

English

(c) Copyright 2007 Xinhua News Agency
HONG KONG, Nov. 23 (Xinhua) -- Hong Kong stocks recovered more than 500 points Friday but traded volume remained quiet to end this week's volatile trading due to worsening credit crisis in the United States.
The blue-chip Hang Seng Index rebounded 536.17 points, or 2.06 percent, to close at 26,541.09 after fluctuating between daily high 26,723.34 and the day's lowest 26,305.45.
The indicator opened 479.82 points, or 1.85 percent, higher at 26,484.74 and narrowed its gains to 310.41 points, or 1.19 percent, to close Friday's morning session at 26,315.33.
Turnover shrank to 104.89 billion HK dollars (13.51 billion U.S. dollars on investor caution from Wednesday's 123.77 billion HK dollars (15.87 billion U.S. dollars).
China Mobile, the country's largest mobile phone operator and the market's largest stock measured by capitalization, rebounded 2. 37 percent to 129.5 HK dollars, propelling the index alone by 92. 05 points.
HSBC, another market heavyweight and the city's largest bank, added 1.15 percent to 131.7 HK dollars, boosting the index by 38. 88 points.
Hong Kong's property companies all gained. Cheung Kong leaped 3. 19 percent to 132.8 HK dollars. Henderson Land advanced 1.87 percent to 59.8 HK dollars. Hutchison edged up 0.29 percent to 86. 55 HK dollars. SHK Properties surged 2.41 percent to 140.5 HK dollars. Hang Lung gained 3.96 percent to 31.5 HK dollars. New World Development roared 4.67 percent to 26 HK dollars. Sino Land jumped 6.2 percent to 24 HK dollars.
Hong Kong Exchange and Clearing Limited, the market's sole operator, rose 1.42 percent 214 HK dollars.
The H-shares index, which was composed of companies registered on the Chinese mainland, recovered 130.29 points, or 0.84 percent, to close at 15,691.71.
Oil sectors were stronger. PetroChina, the largest oil producer in China, rose 1.13 percent to 14.28 HK dollars. Sinopec, the largest oil refiner in Asia, increased 2.79 percent to 10.32 HK dollars. CNOOC, China's largest offshore oil producer, jumped 4.4 percent to 13.3 HK dollars amid reports that the Chinese company is to buy stakes of a Nigerian offshore blocks from Shell.
Most of China's Banking and financials rebounded. ICBC, China's largest lender, jumped 3.47 percent to 5.96 HK dollars. CCB, the second largest bank in China, leaped 3.05 percent to 7.09 HK dollars. Bank of China went up 1.5 percent to 4.05 HK dollars. China Merchants Bank surged 3.05 percent to 32.1 HK dollars. China Life, the largest life insurer in China, rebounded 1.67 percent to 39.65 HK dollars.
Ping An outperformed the index by losing 1.3 percent to 79.5 HK dollars. (7.77 HK dollars = 1 U.S. dollars)
Document XNEWS00020071123e3bn003pj
Hong Kong stocks rebound 2.06 percent
508 words

23 November 2007

Xinhua's China Economic Information Service

XNHA

English

(c) 2007 Xinhua News Agency. All Rights Reserved
HONG KONG, Nov. 23 (Xinhua) -- Hong Kong stocks recovered more than 500 points Friday but traded volume remained quiet to end this week's volatile trading due to worsening credit crisis in the United States.
The blue-chip Hang Seng Index rebounded 536.17 points, or 2.06 percent, to close at 26,541.09 after fluctuating between daily high 26,723.34 and the day's lowest 26,305.45.
The indicator opened 479.82 points, or 1.85 percent, higher at 26, 484.74 and narrowed its gains to 310.41 points, or 1.19 percent, to close Friday's morning session at 26,315.33.
Turnover shrank to 104.89 billion HK dollars (13.51 billion U.S. dollars on investor caution from Wednesday's 123.77 billion HK dollars (15.87 billion U.S. dollars).
China Mobile, the country's largest mobile phone operator and the market's largest stock measured by capitalization, rebounded 2. 37 percent to 129.5 HK dollars, propelling the index alone by 92. 05 points.
HSBC, another market heavyweight and the city's largest bank, added 1.15 percent to 131.7 HK dollars, boosting the index by 38. 88 points.
Hong Kong's property companies all gained. Cheung Kong leaped 3. 19 percent to 132.8 HK dollars. Henderson Land advanced 1.87 percent to 59.8 HK dollars. Hutchison edged up 0.29 percent to 86. 55 HK dollars. SHK Properties surged 2.41 percent to 140.5 HK dollars. Hang Lung gained 3.96 percent to 31.5 HK dollars. New World Development roared 4.67 percent to 26 HK dollars. Sino Land jumped 6.2 percent to 24 HK dollars.
Hong Kong Exchange and Clearing Limited, the market's sole operator, rose 1.42 percent 214 HK dollars.
The H-shares index, which was composed of companies registered on the Chinese mainland, recovered 130.29 points, or 0.84 percent, to close at 15,691.71.
Oil sectors were stronger. PetroChina, the largest oil producer in China, rose 1.13 percent to 14.28 HK dollars. Sinopec, the largest oil refiner in Asia, increased 2.79 percent to 10.32 HK dollars. CNOOC, China's largest offshore oil producer, jumped 4.4 percent to 13.3 HK dollars amid reports that the Chinese company is to buy stakes of a Nigerian offshore blocks from Shell.
Most of China's Banking and financials rebounded. ICBC, China's largest lender, jumped 3.47 percent to 5.96 HK dollars. CCB, the second largest bank in China, leaped 3.05 percent to 7.09 HK dollars. Bank of China went up 1.5 percent to 4.05 HK dollars. China Merchants Bank surged 3.05 percent to 32.1 HK dollars. China Life, the largest life insurer in China, rebounded 1.67 percent to 39.65 HK dollars.
Ping An outperformed the index by losing 1.3 percent to 79.5 HK dollars. (7.77 HK dollars = 1 U.S. dollars) (?)
Document XNHA000020071123e3bn000ul
RI EXPLORING POSSIBILITY OF SATELLITE TECHNOLOGY COOPERATION WITH AFRICAN NATIONS
315 words

22 November 2007

LKBN ANTARA

ANTARA

English

(c) 2007 Asia Pulse Pty Limited. Asia Pulse gives no warranty or guarantee as to the accuracy of the information, Asia Pulse shall not be liable for errors or omissions in, or delays or interruptions to or cessation of delivery of, the data through its negligence or otherwise.
Jakarta, Nov 22 (ANTARA): The Indonesian government is exploring the possibility of establishing cooperation in satellite technology with African countries in the framework of Asia-Africa cooperation, a foreign ministry official said.
"This is a step to expand existing cooperation to other fields beyond the traditional ones such as agriculture," director for African affairs at the Foreign Affairs Ministry Sudirman Haseng said here on Thursday.
Sudirman said the economies of some African states were stable enough to begin developing cooperation with them in more modern technological fields, satellite technology in particular, either for communications or for early warning system development.
"Both market and opportunities are wide open so that the government will facilitate Indonesian businessmen willing to invest in Africa," he added.
Sudirman said now was the time for Indonesian businesspeople to look at the promising African market. They should discard the old image of Africa as a backward and poor continent.
He said most African states now enjoyed an average economic growth rate of five percent. "Many countries are now trying to seize opportunities in Africa, Indonesia should not be left behind."
The foreign ministry, the ministry of communications and the Indonesian Satellite Association will organize an interactive dialog on satellite technology and its application on November 26-27, 2007.
"The aim of the interactive dialog is to encourage Indonesian businesspeople to invest in Africa," Sudirman said.
The dialog would be attended by participants from at least 13 countries in Asia, Africa and Middle East.
The participants would, among others, come from China, Pakistan, South Africa, Kenya, Nigeria, Senegal, Iran, Libya, Algeria, the United Arab Emirates, Egypt, Morocco, and three observer nations, namely the United States, Russia and Germany.
In the meantime, Indonesian agencies that would take part were among others the National Aeronautics and Space Agency (LAPAN) and state telecommunications company PT Telkom.
Document ANTARA0020071123e3bm0000c
RI EXPLORING POSSIBILITY OF SATELLITE TECHNOLOGY COOPERATION WITH AFRICAN NATIONS
320 words

22 November 2007

06:45 PM

Organisation of Asia-Pacific News Agencies

OANA

English

© Copyright 2007. OANA. All rights reserved.
    Jakarta, Nov 22 (ANTARA) - The Indonesian government is exploring the possibility of establishing cooperation in satellite technology with African countries in the framework of  Asia-Africa cooperation, a foreign ministry official said.     "This is a step to expand existing cooperation to other fields beyond the traditional ones such as agriculture," director for African affairs at the  Foreign Affairs Ministry Sudirman Haseng said here on Thursday.     Sudirman said the economies of some  African states were stable enough to begin developing cooperation with them in more modern technological fields, satellite technology in particular, either for communications or for early warning system development.     "Both market and opportunities are wide open so that the government will facilitate Indonesian businessmen willing to invest in Africa," he added.     Sudirman said  now was the time for Indonesian businesspeople to look at the promising African market.
They should discard  the old image of Africa as a backward and poor continent.     He said  most  African states now enjoyed an average economic growth rate of five percent. "Many countries are now trying to seize opportunities in Africa, Indonesia should not be left behind."     The foreign ministry, the ministry of communications and the Indonesian  Satellite Association will organize an interactive dialog on satellite technology and its application on November 26-27, 2007.     "The aim of the interactive dialog is to encourage Indonesian businesspeople to invest in Africa," Sudirman said.     The dialog would  be attended by participants from at least 13 countries in Asia, Africa and Middle East.     The participants would, among others, come from China, Pakistan, South Africa, Kenya, Nigeria, Senegal, Iran, Libya, Algeria, the United Arab Emirates, Egypt, Morocco, and three observer nations, namely the United States, Russia and Germany.     In the meantime, Indonesian agencies that would take part were among others the National Aeronautics and Space Agency (LAPAN) and state telecommunications company PT Telkom. (A014/A/HAJM/A/E002)
Document OANA000020071122e3bm0013e
Roundup: Hong Kong stocks plunge 2.3 pct amid fragile confidence
592 words

22 November 2007

Xinhua News Agency

XNEWS

English

(c) Copyright 2007 Xinhua News Agency
HONG KONG, Nov. 22 (Xinhua) -- Hong Kong stocks turned surpluses into deficits and plunged 613.27 points, or 2.3 percent, to close barely above the 26,000 mark Thursday after stocks slumped on the Chinese mainland.
The blue-chip Hang Seng Index once rebounded 118.4 points, or 0. 45 percent, to close Thursday's morning session at 26,736.59 but sell-off moves mushroomed in the afternoon session after the bad news from markets on China's mainland.
The indicator lost 299.98 points, or 1.13 percent, to open at 26,318.21 on Thursday, following Wall Street's overnight slump due to economic uncertainty amid oil prices hikes and worsening credit crisis in the United States.
The benchmark Shanghai Composite Index on China's mainland, which closed trading one hour earlier that the Hong Kong Stock Exchange, slumped 230 points, or 4.41 percent, to finish at 4,984.16.
Turnover shrank to 123.77 billion HK dollars (15.87 billion U.S. dollars) on investor caution from Wednesday's 128.82 billion HK dollars (16.58 billion U.S. dollars).
China Mobile, the country's largest mobile phone operator and the market's largest stock measured by capitalization, continued to lose 1.94 percent to 126.5 HK dollars, pulling down the index alone by 76.71 points.
China Life, the largest life insurer in China, was another major stock that dragged down the indicator by 74.13 points. China Life dived 4.76 percent to 39 HK dollars.
HSBC, another market heavyweight and the city's largest bank, fell 1.21 percent to 130.2 HK dollars, dampening the index by 41.47 points.
Hong Kong's property companies were among the worst hit. Cheung Kong sank 2.28 percent to 128.7 HK dollars. Henderson Land descended 3.57 percent to 59.4 HK dollars. SHK Properties lost 2.76 percent to 137.2 HK dollars. Hang Lung dropped 1.46 percent to 30.3 HK dollars. New World Development fell 2.74 percent to 24.85 HK dollars. Sino Land dipped 0.88 percent to 22.6 HK dollars.
Hutchison was the only property company that outperformed the market by adding 1.23 percent to 86.3 HK dollars.
Hong Kong Exchange and Clearing Limited, the market's sole operator, plunged 4.35 percent 211 HK dollars on the market's shrinking traded volume.
The H-shares index, which was composed of companies registered on the Chinese mainland, plummeted 432.08 points, or 2.7 percent, to close at 15,561.42 after the market slump on the Chinese mainland.
Oil sectors were mixed. PetroChina, the largest oil producer in China, lost 1.4 percent to 14.12 HK dollars. Sinopec, the largest oil refiner in Asia, weakened 1.76 percent to 10.04 HK dollars.
CNOOC, China's largest offshore oil producer, outperformed the market and added 0.63 percent to 12.74 HK dollars amid reports that the Chinese company is to buy stakes of a Nigerian offshore blocks from Shell.
All China's Banking and financials sank. ICBC, China's largest lender, lost 1.37 percent to 5.76 HK dollars. CCB, the second largest bank in China, sank 2.41 percent to 6.88 HK dollars. Bank of China went down 1.24 percent to 3.99 HK dollars. Ping An plunged 4.05 percent to 80.55 HK dollars. (7.77 HK dollars = 1 U.S. dollars)
Document XNEWS00020071122e3bm004ms

Investors circle around Zimbabwe --- Mugabe can't rule forever, nation will rebound, funders reason
By Sarah Childress

1,062 words

22 November 2007

The Wall Street Journal Asia

AWSJ

1

English

(c) 2007 Dow Jones & Company, Inc. To see the edition in which this article appeared, click here http://awsj.com.hk/factiva-ns
JOHANNESBURG, South Africa -- Zimbabwe is an economic nightmare. The annual inflation rate is 8,000% and rising. People don't have food to eat.
Yet, investors have started sending millions of dollars into the country. Foreign direct investment has rebounded, reaching $103 million in 2005, up from $4 million in 2003, according to the most recent figures available from the United Nations Conference on Trade and Development.
What explains the new money? Some investors are betting there's nowhere to go but up. A slump like Zimbabwe's can't last, and when it's over -- perhaps with the graceful, or otherwise, exit of President Robert Mugabe, who has presided over a decades-long downward spiral -- the country will rebound.
The race to invest in Zimbabwe also underscores just how far global investors are willing to stretch in search of decent returns. The turmoil in global credit markets has rippled across emerging economies, boosting yields for some of the riskiest bets around.
At the same time, in recent years, relatively sluggish returns in many developed markets have sent investors farther afield.
Africa overall is emerging as a hot destination for money. Amid a global commodities boom, investment bankers from around the world are turning to African commercial hubs such as Lagos, Nigeria, and Johannesburg, South Africa.
China, in particular, is pouring cash into the continent, investing in oil fields, mines and more recently the financial sector. Last month, Industrial & Commercial Bank of China Ltd. said it would spend $5.5 billion for a 20% stake in South Africa's Standard Bank. And, Dow Jones Newswires reported that China's Cnooc Ltd. is looking into interests in Nigerian blocks held by Royal Dutch Shell PLC, according to a person familiar with the matter.
Managers at Imara Holdings Ltd., a Botswana-based investment-banking company, were surprised when investors started asking this year about Zimbabwe, considering the seemingly better opportunities in the region, including diamond-rich Botswana and agribusiness-focused Uganda.
Dave Eliot, chief executive of subsidiary Imara Assets Management in South Africa, said he once classified Zimbabwe as an "emerging market," but has now downgraded it to "frontier" status since the country began falling apart in the past few years.
Once known as Rhodesia under white minority rule, Zimbabwe became a democracy in 1980 after a prolonged guerrilla war. The veteran guerrilla leader, Mr. Mugabe, was elected president, and the new country became the darling of foreign investors eager to access Zimbabwe's natural resources. Within a decade, Mr. Mugabe had become corrupt and paranoid, fixing elections, crushing dissent and dragging the country into economic decline.