City dropping red-light camera firm as investigation heats up

Chicago Tribune reporter David Kidwell discusses the recent changes at Redflex Holdings Ltd., the Australian company responsible for Chicago's red-light program. (Posted on: Feb. 8, 2013)









Mayor Rahm Emanuel announced today he will axe the city’s embattled red-light camera vendor when its contract expires in July, citing new investigative findings that the company gave thousands of dollars in free trips to the former city official who oversaw the decade-long program.

Emanuel announced the action against Redflex Traffic Systems Inc. following the Chicago Tribune’s report today that the chairman of Redflex’s Australian parent company resigned this week and trading in the company's stock was suspended amid an intensifying investigation into allegations of corruption in its Chicago contract.






Redflex Holdings Ltd. announced the extraordinary actions just days after board members were briefed by an outside legal team hired to examine ties between the company's U.S. subsidiary and the city official who oversaw its contract, a relationship first disclosed in October by the Tribune. The company also revealed for the first time that it is sharing information with law enforcement authorities.

The internal probe found that company executives systematically courted former city transportation official John Bills with thousands of dollars in free trips to the Super Bowl and other sporting events, sources familiar with the investigation told the Tribune. The company also hid the extent of the improper relationship from City Hall after the newspaper's reporting last year forced Redflex to partially reveal its ties to Bills, sources said.

Emanuel, who inherited the red-light contract when he took office in 2011, had already disqualified Redflex from bidding on his new speed camera initiative after the October disclosures. The new announcement means Redflex will lose what it has described as its largest North American contract. The mayor’s office gave the company a six-month extension last month while it opened the contract to bids, but at that time did not announce whether Redflex could compete to keep the business.

“Given these more serious allegations, we are declaring Redflex not responsible to bid on the new red light RFP when it is issued,” Emanuel spokeswoman Sarah Hamilton said in an email to the Tribune.

“The City is also engaging an independent firm immediately to audit the Redflex contract for all past and ongoing activities to ensure Chicago taxpayers are not cheated in any way.  If there are any findings of illegal conduct or improprieties that show Chicago taxpayers were defrauded, the City will seek penalties to the fullest extent of the law.”

The Redflex internal probe and a parallel investigation by city Inspector General Joseph Ferguson are also raising more questions about the company's hiring of a longtime Bills friend who received more than $570,000 in company commissions as a customer service representative in Chicago, the sources said.

Bills did not return calls, but has adamantly denied any wrongdoing. "I would never have intentionally accepted a dime from Redflex, I wouldn't do that," he told the Tribune in October.

The latest developments run counter to the company's previous contentions that a whistle-blower concocted widespread accusations of internal wrongdoing and that a single company executive had mistakenly violated procedures by paying a one-time hotel tab for Bills. The reversal was acknowledged in a statement to the newspaper Thursday from the Australian company's CEO, who took over in September.

"Although the investigation is not over, we learned that some Redflex employees did not meet our own code of conduct and the standards that the people of the city of Chicago deserve," said Robert DeVincenzi, CEO of Redflex Holdings, the parent company of Phoenix-based Redflex Traffic Systems Inc.

"We are sharing information with law enforcement authorities, will take corrective action and I will do everything in my power to regain the trust of the Chicago community," DeVincenzi said.

Until the allegations were published by the Tribune, Redflex was positioned as a leading contender for Emanuel's new program to sprinkle the city with automatic cameras to tag speeders in school and park "safety zones." Emanuel's administration accused the company of covering up the wrongdoing allegations and disqualified it from bidding on the speed camera contract. Now the company faces the potential loss of its long-standing red-light program in Chicago, which has generated about $100 million for the company and more than $300 million in ticket revenue for the city.

The internal allegations were first made by a former Redflex vice president who wrote of the company's close relationship to Bills in a five-page internal memo emailed in 2010 to the Australian board of directors and obtained by the Tribune. In addition to making allegations about commissions to Bills' friend, the executive complained of "nonreported lavish hotel accommodations" for Bills.

The memo was addressed to Redflex Holdings board Chairman Max Findlay and sent overseas via email. Findlay and another board director, Ian Davis, were atop the list of recipients of the 2010 email.

The company announced both men's resignations in filings Wednesday to the Australian Securities Exchange, where Redflex is publicly traded.

Redflex did not indicate why the men were resigning. But on Thursday the company asked for and was granted by the exchange a four-day suspension of trading "until the earlier of 10 a.m. on Monday 11 February 2013 or an announcement being made."

"The trading halt relates to an update regarding financial aspects and the ongoing investigation in the USA," wrote company secretary Marilyn Stephens. The company did not elaborate on the trading action.

Redflex lawyers told the Tribune in October that a previous company-sponsored investigation by an outside law firm in 2010 found no wrongdoing but for a single hotel stay one top executive paid for Bills. Redflex Traffic Systems sent the executive vice president in question to "anti-bribery" training and revamped its expense accounting system, according to General Counsel Andrejs Bunkse.

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China, Japan engage in new invective over disputed isles


BEIJING (Reuters) - China and Japan engaged on Friday in a fresh round of invective over military movements near a disputed group of uninhabited islands, fuelling tension that for months has bedeviled relations between the Asian powers.


An increasingly muscular China has been repeatedly at odds with others in the region over rival claims to small clusters of islands, most recently with fellow economic giant Japan which accused a Chinese navy vessel of locking radar normally used to aim weapons on a Japanese naval ship in the East China Sea.


China's Defence Ministry rejected Japan's complaint about the radar, its first comment on the January 30 incident. It said Japan's intrusive tracking of Chinese vessels was the "root cause" of the renewed tension.


A Japanese official dismissed the Chinese explanation for incident saying China's actions could be dangerous in the waters around the islets, known as Diaoyu in China and Senkaku in Japan, believed to be rich in oil and gas.


Japanese Prime Minister Shinzo Abe led his conservative party to a landslide election victory in December, promising to beef up the military and stand tough in territorial disputes.


On Thursday, another border problem was brought into focus when Japan said two Russian fighter jets briefly entered its air space near long-disputed northern islands, prompting Japan to scramble combat fighters. Russia denied the accusation.


The commander of U.S. forces in the Asia-Pacific said the squabble between Japan and China underlined the pressing need for rules to prevent such incidents turning into serious conflict.


"What we need in the South China Sea is a mechanism that prevents us turning our diplomacy over to young majors and young (naval) commanders ... to make decisions at sea that cause a problem (that escalates) into a military conflict that we might not be able to control," Admiral Samuel Locklear told a conference in the Indonesian capital.


China is in dispute with several Southeast Asian countries including the Philippines and Vietnam over parts of the South China Sea, which is potentially rich in natural resources.


Locklear said governments and their leaders had to understand the potential for things to get out of hand.


"In this case, I think that point has been made pretty clear," he said in reference to international reaction to the dispute between China and Japan.


"IRRESPONSIBLE"


China's Defence Ministry, in a faxed statement late on Thursday, said Japan's complaints did not "match the facts". The Chinese ship's radar, it said, had maintained regular alerting operations and the ship "did not use fire control radar".


The ministry said the Chinese ship was tracked by a Japanese destroyer during routine training exercises. Fire control radar pinpoints the location of a target for missiles or shells and its use can be considered a step short of actual firing.


Japan, the ministry said, had "made irresponsible remarks that hyped up a so-called China threat, recklessly created tension and misled international public opinion".


"Japanese warships and airplanes have often conducted long periods of close-range tracking and surveillance of China's naval ships and airplanes," the Chinese Defence Ministry said.


"This is the root cause of air and maritime security issues between China and Japan."


In Tokyo, Japan's Chief Cabinet Secretary Yoshihide Suga told a news conference Japan could not accept China's explanation and Japan's accusation came after careful analysis.


"We urge China to take sincere measures to prevent dangerous actions which could cause a contingency situation," Suga said.


Japanese Defence Minister Itsunori Onodera said this week that the radar incident could have become very dangerous very quickly, and it could have been seen as a threat of military force under U.N. rules.


Hopes had been rising recently for an easing of the tension, which was sparked, in part, by Japan's nationalization of three of the privately owned islets last September.


Fears that encounters between aircraft and ships could bring an unintended clash have given impetus to efforts to improve links, including a possible summit between Abe and Chinese leader Xi Jinping, who takes over as head of state in March.


(Additional reporting by Linda Sieg in TOKYO, Joathan Thatcher in JAKARTA; Editing by Ron Popeski and Robert Birsel)



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Wall Street ends lower on renewed euro zone fears

NEW YORK (Reuters) - Stocks declined on Thursday, taking a step back from their recent advance, prompted by comments by the ECB president on the euro and Europe's outlook.


The euro currency dropped against the safe-haven dollar and yen, spurring a retreat from risky assets such as stocks, after European Central Bank President Mario Draghi said the exchange rate was important to growth and price stability. Investors took that as a sign the bank is concerned about the euro's advance and its effect on the region's economy.


Growth sectors were among the weakest performers on the S&P 500: the S&P 500 materials index <.splrcma> was down 0.6 percent while the S&P energy index <.spny> was down 0.5 percent. Housing stocks also declined, with a housing sector index <.hgx> off 1.4 percent.


Despite the day's decline and weakness earlier this week, the stock market has been in an almost uninterrupted up trend for most of the year, with the S&P 500 up 5.8 percent so far for 2013.


Many analysts say some weakness at this point is no surprise.


"Given the amount the market moved in January, having a little bit of a pullback and some consolidation where the market goes sideways for a little while, we think would be a healthy sign," said Eric Marshall, director of research at Hodges Capital Management in Dallas.


Top U.S. retailers reported strong January sales after offering compelling merchandise that drew in shoppers facing a hit to their take-home pay from higher payroll taxes.


The Dow Jones industrial average <.dji> was down 42.47 points, or 0.30 percent, at 13,944.05. The Standard & Poor's 500 Index <.spx> was down 2.73 points, or 0.18 percent, at 1,509.39. The Nasdaq Composite Index <.ixic> was down 3.34 points, or 0.11 percent, at 3,165.13.


Shares of Apple helped to limit losses on the Nasdaq, the stock ending up 3 percent at $468.22. Fund manager David Einhorn's Greenlight Capital said it has sued Apple Inc and said the company needs to do more to unlock value for shareholders.


Though the earnings season is winding down, results continue to boost growth estimates for the fourth quarter. According to Thomson Reuters data through Thursday morning, of 317 companies in the S&P 500 that have reported earnings, 69 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


Fourth-quarter earnings for S&P 500 companies rose 5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Akamai Technologies Inc lost 15.2 percent to $35.26 as the worst percentage performer on the S&P 500 after the Internet content delivery company forecast current-quarter revenue below analysts' expectations.


Among retailers, Macy's Inc rose 2 percent to $40.27 after reporting January same store sales rose 11.7 percent.


But Ann Inc dropped 8 percent to $30.20 after forecasting fourth-quarter sales below analysts' expectations.


Economic data was mixed. Initial jobless claims dipped last week, with the four-week moving average falling to its lowest level since March 2008, signaling the economy continues to recover slowly.


A separate report said fourth-quarter productivity registered its biggest drop in nearly two years, while unit labor costs jumped 4.5 percent, more than economists expected.


Roughly 6.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Decliners outpaced advancers on the NYSE by nearly 4 to 3 and on the Nasdaq by about 5 to 3.


(Additional reporting by Angela Moon; Editing by Kenneth Barry and Nick Zieminski)



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Armstrong sued for $12 million bonus


AUSTIN, Texas (AP) — A Dallas promotions company sued Lance Armstrong on Thursday, demanding he repay $12 million in bonuses and fees it paid him for winning the Tour de France.


SCA Promotions had tried in a 2005 legal dispute over the bonuses to prove Armstrong cheated to win before it ultimately settled and paid him.


Armstrong recently acknowledged using performance-enhancing drugs after the U.S. Anti-Doping Agency in 2012 detailed a sophisticated doping program by his Armstrong's teams. Armstrong was stripped of his seven Tour de France victories and given a lifetime ban from sports.


Now, the company contends in its lawsuit, Armstrong and agent Bill Stapleton lied and conspired to cheat SCA out of millions. The lawsuit notes that Armstrong repeatedly testified under oath in the 2005 dispute that he did not use steroids, other drugs or blood doping methods to win, all of which he now admits to doing.


"It is time now for Mr. Armstrong to face the consequences of his actions," said the lawsuit, which demands a jury trial. "He admits he doped; he admits he bullied people; he admits he lied."


Armstrong won the Tour de France every year from 1999-2005. The SCA lawsuit seeks to recover $9.5 million in bonus money for winning the race from 2002-2004 and another $2.5 million paid to Armstrong for other costs and fees.


The lawsuit names Armstrong, Stapleton and Tailwind Sports, Inc., the team's management entity, as defendants.


Tim Herman, an attorney for Armstrong and Stapleton, did not immediately return telephone messages. Herman has previously noted that SCA previously settled its case with Armstrong and said it should not be allowed to reopen the matter.


An Armstrong spokesman referred to the original settlement signed in February 2006 by SCA President Robert Hamman and Stapleton, both for himself and Armstrong, that states "No party may challenge, appeal or attempt to set aside" the agreement, which is "fully and forever binding."


SCA counters that the case can be reopened because Armstrong's repeated lies under oath prevented it from proving he doped.


"Had SCA — or the Arbitration Panel — known the truth, the arbitration award and settlement never would have occurred," the lawsuit said.


According to the lawsuit, Stapleton and Herman both said in the original dispute that if Armstrong was to be stripped of his titles by official action, SCA would have no obligation to pay or could come after its money.


The 35-page filing also goes after Armstrong's televised interview with Oprah Winfrey last month in which he tearfully recounted having to tell his 13-year-old son the doping allegations were true.


In 2006, Armstrong told the arbitration panel that he didn't dope because he wouldn't want his son to someday follow him into a dirty sport.


"So how could I put my son into this completely dark, dirty underworld of deceit and deception would make no sense to me. I would never do that," Armstrong said, according to the lawsuit.


Separately, USADA chief executive Travis Tygart said Wednesday the agency has been in contact with him Armstrong and is giving him more time to decide if he wants to cooperate with its investigators and tell more about what he knows of doping in cycling.


USADA extended its original Wednesday deadline to Feb. 20 to work out an interview with investigators under oath.


Just two weeks ago, Herman had strongly suggested Armstrong would not be interested in talking with USADA investigators. Tygart said it was Armstrong who asked for more time.


"We understand that he does want to be part of the solution and assist in the effort to clean up the sport of cycling," Tygart said in a statement. "We have agreed to his request for an additional two weeks to work on details to hopefully allow for this to happen."


The agency has said cooperating in its cleanup effort is the only path open to Armstrong if his lifetime ban from sports is to be reduced.


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Bring drones out of the shadows?






STORY HIGHLIGHTS


  • John Brennan's confirmation hearing is a chance to ask about drone program, author says

  • Sarah Holewinski: Brennan is one of a few officials who knows full story on drones

  • She says senators need to ask about damage drone program does to civilians, U.S. reputation

  • Holewinski: CIA should hand over drone program to Defense Department




Editor's note: Sarah Holewinski is executive director of the Center for Civilians in Conflict, which advocates protections for civilians affected by armed conflict. She was a member of the White House AIDS policy team in President Bill Clinton's second term.


(CNN) -- The president's pick for CIA director -- John Brennan -- is one of a handful of U.S. officials who understands America's covert drone campaign inside and out.


Nearly everyone else is in the dark about the whos, wheres and whys of the program, including most members of Congress. But Brennan is also one of the few U.S. officials who's stood in front of a public audience and tried to explain the targeting of terrorists outside recognized battlefields. And while overseeing a massive use of lethal force, Brennan is also known inside the administration as a moderating voice in the fight against terrorism.



Sarah Holewinski

Sarah Holewinski



The fact is, Brennan's personal views are as opaque as the drone campaign itself. He may assume leadership of the CIA and decide a clandestine agency should not conduct what is an obvious military operation (a stance I and many others would fully support); after all, a veteran of the CIA may believe the agency should get back to gritty intelligence gathering.


CNN Explains: U.S. drones


Or, maybe Brennan believes that when it comes to the fight against al Qaeda, the public and its Congress should trust the executive office to protect the American people by whatever means it sees fit.


One way or the other, this week's Senate confirmation hearings should be an opportunity to bring Brennan's views out of the shadows, along with the basic attributes and justifications of the covert drone campaign. The man, the machine and the policy are inextricably linked.


Bergen: John Brennan, America's drone warrior



U.S. officials have consistently claimed that offering too many details about the covert drone program could threaten national security. Fair enough; some classification for national security is understandable. But the secrecy surrounding covert drone use is unduly excessive and not in keeping with the transparent government President Barack Obama promised.


Since the bulk of Brennan's hearing will be behind closed doors, the Senate Select Committee on Intelligence has no reason to shy away from asking tough questions about the drone program. It matters that Congress is there to represent the American people. On their behalf, Congress has a duty to ensure the use of lethal force beyond our borders is being considered and carried out responsibly, with due consideration for the harm it may inflict on civilian populations.


Talk Back: Should U.S. be able to kill American terrorist suspects without trial?


Senators might ask a very basic question to Brennan, one that is seldom clearly answered by the administration: "What impact is the drone campaign against al Qaeda and its associates having?"




John Brennan, President Barack Obama's choice for CIA director, has been deeply involved in the U.S. drone program.



This is a fundamental question of accountability any U.S. official involved in setting or carrying out counterterrorism policy should be able to answer. That answer may describe a dwindling kill list, but it must also put forward facts about what impact drones are having on civilians living under them.


U.S. armed forces in Afghanistan and Iraq learned that the positive or negative impacts of an operation on the local population are an important metric of mission effectiveness. Commanders worked hard to reverse anti-American sentiment caused by a seemingly callous U.S. attitude toward civilian deaths and injuries. In the case of counterterrorism operations, palpable anger toward America would be antithetical to the goal of decreasing the number of terrorists and those who support their cause.


As it stands, it's unclear whether anyone, including Brennan, knows what negative consequences are emerging on the ground because of remote drones.


Rather, claims of low civilian casualties and drone precision capabilities paint a picture of extreme effectiveness in taking out terrorists while sparing civilians. It's true that a drone is precise, meaning it will hit what it is aimed at -- a building, a bunker or a person. But there are valid concerns about whether the target hit is the right one.


Opinion: When are drone killings illegal?


Remote drones likely rely on sources that may be questionable such as video and cell phone intercepts to identify a target. Civilians may be mistakenly targeted as combatants and counted as such because there are no ground troops to conduct a battle damage assessment, interview witnesses or properly identify bodies.


Civilians may also get caught up in so-called "signature strikes" in which operators target individuals based on behavior, not on known identity. This is legally questionable but also has real ramifications for civilians living under drones.



If a civilian in Pakistan doesn't know what behavior makes him a target for U.S. drones, he cannot fully protect himself and his family. If a drone harms his family, even mistakenly, our research shows they won't receive an apology, explanation or any help from the United States. Certainly there will be no love lost for America.


Any deaths and injuries are compounded by psychological trauma, displacement and fear and suspicion among neighbors. One Pakistani told us, "We fear that the drones will strike us again. ... My aged parents are often in a state of fear. We are depressed, anxious and constantly remembering our deceased family members."


Gen. Stanley McChrystal, the former commander of international forces in Afghanistan, recently noted, "What scares me about drone strikes is how they are perceived around the world. ... (T)he resentment created by American use of unmanned strikes ... is much greater than the average American appreciates. They are hated on a visceral level, even by people who've never seen one or seen the effects of one."


The drone program needs to come out of the shadows, with explanations about who is a civilian, who is a target, and how drone operators distinguish between the two.


The CIA should get out of the drone operation business, handing it over to the Defense Department, which has a culture of learning lessons, accountability to Congress and a new openness about civilian protection after 10 years of war in Afghanistan and Iraq.


Drone operators should be trained in civilian protection best practices, and any civilian harmed should receive recognition and help for their losses, in accordance with the values American policymakers have espoused about humanity even during times of war.


The Senate may confirm Brennan as head of the CIA. It should also confirm where he stands on government accountability for lethal force and the CIA's role in the remote drone program.


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Sarah Holewinski.






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Snow to hit evening commute









A winter storm warning has been issued for Lake and McHenry counties, with heavy wet snow falling at the rate of one to two inches as hour in some northern suburbs.


Some areas, such as Gurneee, had 5 inches by 4 p.m. Those areas are expected to get 6 to 8 inches of snow by the time the storm moves out overnight, according to National Weather Service meteorologist Bill Nelson..


“Parts of Cook and DuPage counties will see around 2 to 5 inches,” Nelson said. Areas farther south will see only an inch or two.








As of 4:30 p.m. the Chicago put out 199 of its snow and salt trucks and expected to patrol main streets throughout the evening rush.


The Illinois Tollway also has mobilized its full fleet of 182 snowplows during rush hour and throughout the evening across the 286-mile system, according to a release.

By 4 p.m., Gurnee had 5 inches, Beach Park 4.6 inches, Wadsworth 4.5 inches, Kenosha 4.3 inches, Spring Grove 4 inches, Beach Park 3.1 inches, Antioch 2.8 inches and Bull Valley 2.1 inches.

North and northwest suburbs were seeing numerous accidents, from Barrington to Antioch, according to Traffic.com.


In McHenry County, police were warning motorists to avoid U.S. Route 31 between Crystal Lake and McHenry because the road was "impassable" where it crosses over a hill.


State police said expressways were largely clear but the weather service warned of a slow evening commute.

"The threat for a period of heavy snow could result in reduced visibilities under a mile at times and rapid accumulation on area roads during the evening commute," the weather service warned.


Photos: Chicago winter 2012-13


Still, the storm was nothing like the one barreling toward New England with forecasts of up to two feet of snow. A blizzard warning has been issued for New York City, Connecticut and the Boston area.

Forecasters warned the snow would begin lightly on Friday morning but ramp up to blizzard conditions by afternoon, leading Boston Mayor Thomas Menino to order the city's schools closed Friday. He asked businesses to consider allowing staff to stay home.

"We are hardy New Englanders, let me tell you, and used to these types of storms. But I also want to remind everyone to use common sense and stay off the streets of our city. Basically, stay home," Menino told reporters. "Stay put after noontime tomorrow."

The National Weather Service said Boston could get one to two feet of snow on Friday and Saturday, which would be its first major snow fall in about two years. Light snow is expected to begin falling around 7 a.m. EST on Friday, with heavier snow and winds gusting as high as 60 to 75 miles per hour as the day progresses.

"It's the afternoon rush-hour time frame into the evening and overnight when the height of the storm will be," said Kim Buttrick, a meteorologist at the National Weather Service in Taunton, Massachusetts. "That's when we expect the storm to begin in earnest."

The heaviest snow was expected around Boston, the region's most populous city, with cities from Hartford, Connecticut to Portland, Maine, expected to see at least a foot.

If more than 18.2 inches of snow fall in Boston, the storm will rank among the 10 biggest snowfalls on record in the city. The heaviest snowfall ever recorded in Boston was a 27.6 inch dump that accompanied the blizzard of February 17-18, 2003.

The storm's timing brought back memories of the blizzard of 1978, Boston's second-heaviest recorded snow fall, which roared in on an afternoon, dropping 27.1 inches of snow, trapping commuters on roadways and leaving dozens dead across the region, largely as a result of downed electrical lines.

Peter Judge, a spokesman for the Massachusetts Emergency Management Agency, said one of the state's biggest worry is power outages.

"It being winter, folks losing their power means they're also losing their heat, and if you lose heat during the middle of the storm, you're not going to be able to go out to get to a shelter," he said, adding that the agency would begin 24-hour operations at its emergency compound at noon (1700 GMT) on Friday and would be in close contact with local utilities.

Unlike the 1978 blizzard, which had been forecast to drop far less snow than it actually did, he said he hoped several days of news coverage about this storm would prompt people to stay off the roads.

"People have been warned, they have been told what the issues are," Judge said. "We don't expect people to be surprised."

Reuters contributed to this report.


chicagobreaking@tribune.com


Twitter: @chicagobreaking





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Iran's Khamenei rebuffs U.S. offer of direct talks


DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden last week, saying they would not solve the problem between them.


"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.


"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.


"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."


Khamenei made his comments just days after Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in Munich on Saturday.


With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.


"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.


Relations between Iran and the United States were severed after the overthrow of Iran's pro-Western monarchy in 1979 and diplomatic meetings between officials have since been very rare.


ALL OPTIONS STILL 'ON THE TABLE'


Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.


In Washington, U.S. State Department spokeswoman Victoria Nuland brushed off Khamenei's remarks and urged Iran to show up in Almaty "prepared to discuss real substance" either in a group setting or in bilateral talks.


"As the Iranians well know, the ball is in the Iranians' own court," she told reporters.


"We've always said that action on the Iranian side would be matched by action on our side, so it's really up to Iran to engage if it wants to see sanctions eased," said Nuland, adding that failure to address the nuclear concerns would bring more pressure on Tehran.


Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".


Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel says the prospect of a nuclear-armed Iran threatens its existence, given Tehran's refusal to recognize the Jewish state.


"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.


"The fact that the Iranians have not yet come down from the path they are on means that talks ... are liable to bring about only a stalling for time," he said.


Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.


Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.


Moreover, although his November re-election may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.


(Additional reporting by Dan Williams, and Paul Eckert in Washington; Editing by William Maclean, Jon Boyle and Mohammad Zargham)



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Wall Street ends flat as investors pull back

NEW YORK (Reuters) - Stocks ended mostly flat on Wednesday, taking another pause in the recent rally that has driven the S&P 500 to five-year highs, as transportation and technology shares lost ground.


Transportation stocks were among the worst performers. Shares of CH Robinson Worldwide fell 9.7 percent to $60.50 and the stock was the biggest percentage loser on the Nasdaq 100 after the freight transport company posted a lower-than-expected adjusted quarterly profit.


Without a strong catalyst, the market could struggle to continue its rally, analysts said. The benchmark S&P 500 index has advanced 6 percent this year, reaching its highest since December 2007, while the Dow Jones industrial average <.dji> has risen above 14,000 recently.


Bank of America-Merrill Lynch analysts see a near-term pullback likely, based on strong equity inflows at the start of the year, said Dan Suzuki, the bank's equity strategist in New York.


"The fact that we've gone since November without seeing one, from a timing perspective, it wouldn't be a surprise to see one now."


With fourth-quarter earnings nearing an end, the market will be losing one of its big supports, said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "That's one thing that's been holding the market up," he said.


Shares of Time Warner Inc jumped 4.1 percent to $52.01 after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in film, TV entertainment and publishing units.


The Dow Jones industrial average <.dji> was up 7.22 points, or 0.05 percent, at 13,986.52. The Standard & Poor's 500 Index <.spx> was up 0.83 points, or 0.05 percent, at 1,512.12. The Nasdaq Composite Index <.ixic> was down 3.10 points, or 0.10 percent, at 3,168.48.


Amazon.com shares, down 1.7 percent at $262.22, led the decline on the Nasdaq.


Also causing some strain on the market, investors have been speculating about leadership changes in Spain and Italy and watching for comments from European leaders, analysts said. European Central Bank policymakers are due to meet Thursday.


The Dow Jones Transportation average <.djt> was down 0.2 percent after hitting another record high on Tuesday. The average is up 10.7 percent for the year so far and has made a series of new highs since mid-January.


According to Thomson Reuters data, of 301 companies in the S&P 500 that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Walt Disney Co's stock was up 0.4 percent at $54.52, after the company beat estimates for quarterly adjusted earnings and gave an optimistic outlook for the next few quarters.


Volume was roughly 6.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by roughly 17 to 12 and on the Nasdaq by about 13 to 11.


(Editing by Bernadette Baum, Kenneth Barry and Nick Zieminski)



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Honduras rallies to beat US 2-1 in WCup qualifier


Jerry Bengston took advantage of a defensive mix-up to score the go-ahead goal in the 79th minute, and Honduras rallied to beat the United States 2-1 Wednesday in the opener of the final qualifying round for next year's World Cup.


Clint Dempsey put the Americans ahead in the 36th minute but the Americans, using a new-look defense that featured Omar Gonzalez and Timmy Chandler, gave up the lead when Juan Carlos Garcia tied the score in the 40th at San Pedro Sula.


Bengston, who plays for Major League Soccer's New England Revolution, scored the winner when defender Geoff Cameron and goalkeeper Tim Howard both went for a pass by Maynor Figueroa to Oscar Boniek Garcia. That allowed Garcia to tap the ball across to Bengston for a shot into an open net, and Gonzalez was too late to challenge him.


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Should we still fear al Qaeda?














































































Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


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Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


Mali military battles Islamist insurgents


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STORY HIGHLIGHTS


  • Peter Bergen: U.K. politicians called North Africa terror an existential threat

  • Bergen says core al Qaeda has been greatly weakened, hasn't mounted serious operations

  • Terror groups loosely affiliated with al Qaeda have also lost ground, he says

  • Bergen: Jihadist violence does continue, but it does no good to overstate threat




Editor's note: Peter Bergen is CNN's national security analyst, the author of "Manhunt: The Ten-Year Search for bin Laden -- From 9/11 to Abbottabad", and a director at the New America Foundation.


Washington (CNN) -- The attack in January on a gas facility in Algeria by an al Qaeda-linked group that resulted in at least 37 dead hostages has sparked an outpouring of dire warnings from leading Western politicians.


British Prime Minister David Cameron described a "large and existential threat" emanating from North Africa. Tony Blair, his predecessor as prime minister, agreed saying, "David Cameron is right to warn that this is a battle for our values and way of life which will take years, even decades."


Hang on chaps! Before we all get our knickers in a tremendous twist: How exactly does an attack on an undefended gas facility in the remotest depths of the Algerian desert become an "existential threat" to our "way of life"?


Across the Atlantic, American politicians also got into sky-is-falling mode. Republican Congressman Mike Rogers, who heads the House Intelligence Committee, fulminated, "This is going to get worse. You cannot allow this to become a national security issue for the United States. And I argue it's already crossed that threshold."



Peter Bergen

Peter Bergen



Previous real U.S. national security threats and their manifestations include 9/11, the doctrine of mutually assured destruction (from the potential use of nuclear weapons) with the Soviets, Pearl Harbor and Hitler's armies taking over much of Europe.


A ragtag group of jihadists roaming the North African deserts is orders of magnitude less significant than those genuine threats to the West and is more comparable to the threats posed by the bands of pirates who continue to harass shipping off the coast of Somalia. They are surely a problem, but a localized and containable one.


Western politicians and commentators who claim that the al Qaeda linked groups in North Africa are a serious threat to the West unnecessarily alarm their publics and also feed the self-image of these terrorists who aspire to attack the West, but don't have the capacity to do so. Terrorism doesn't work if folks aren't terrorized.


North African group hasn't attacked in the West



Western politicians and commentators who claim that the al Qaeda linked groups in North Africa are a serious threat to the West unnecessarily alarm their publics...
Peter Bergen



Much has been written, for instance, in recent weeks about al Qaeda in the Islamic Maghreb (AQIM), al Qaeda's North African affiliate, a splinter group of which carried out the attack on the Algerian gas facility. But according to Camille Tawil, who has authoritatively covered Islamist militant groups over the past two decades for the leading Arabic daily Al-Hayat and has written three books about al Qaeda, AQIM doesn't threaten the West: "To my knowledge no known attacks or aborted attacks in the West have been linked directly to AQIM."


AQIM was formed seven years ago so the group has had more than enough time to plot and carry out an attack in the West. By way of comparison, it took two years of serious plotting for al Qaeda to plan the 9/11 attacks.


So, what is the real level of threat now posed by al Qaeda and allied groups?


Let's start with "core al Qaeda" which attacked the United States on 9/11 and that is headquartered in Pakistan. This group hasn't, of course, been able to pull off an attack in the United States in twelve years. Nor has it been able to mount an attack anywhere in the West since the attacks on London's transportation system eight years ago.


Core al Qaeda on way to extinction


Osama bin Laden, the group's founder and charismatic leader, was buried at sea a year and half ago and despite concerns that his "martyrdom" would provoke a rash of attacks in the West or against Western interests in the Muslim world there has instead been.... nothing.


Meanwhile, CIA drone strikes in Pakistan during President Obama's tenure alone have killed 38 of al Qaeda's leaders in Pakistan, according to a count by the New America Foundation.








Those drone strikes were so effective that shortly before bin Laden died he was contemplating ordering what remained of al Qaeda to move to Kunar Province in the remote, heavily forested mountains of eastern Afghanistan, according to documents that were discovered following the SEAL assault on the compound where bin Laden was hiding in Abbottabad, Pakistan.


Core al Qaeda is going the way of the dodo.


Affiliates are no better off


And a number of the affiliates of core al Qaeda are in just as bad shape as the mother ship.


Jemaah Islamiah (JI), the virulent Southeast Asian al Qaeda affiliate that killed hundreds in the years after 9/11 is largely out of business. Why so? JI killed mostly Westerners in its first attacks on the tourist island of Bali in 2002, but the subsequent Bali attack three years later killed mostly Indonesians. So too did JI's attacks on the Marriott hotel in the capital Jakarta in 2003 and the Australian embassy in 2004. As a result, JI lost any shred of popular support it had once enjoyed.


At the same time the Indonesian government, which at one point had denied that JI even existed, mounted a sophisticated campaign to dismantle the group, capturing many of its leaders and putting them on trial.


In the Philippines, the Abu Sayyaf Group, a number of whose leaders had trained in Afghanistan in al Qaeda's camps, and which specialized in kidnapping Westerners in the years after 9/11, was effectively dismantled by the Philippine army working in tandem with a small contingent of U.S. Special Operations Forces.


In Pakistan, the Pakistani Taliban in 2009 took over the once-tranquil mountainous vacation destination of Swat, and destroyed some 180 schools and beheaded 70 policemen there. Suddenly, they were only 70 miles from the capital Islamabad and some warned that the Pakistani state was in danger. Today, the Pakistani Taliban have been rolled back to their bases along the Afghan border and 16 of their leaders have been killed by CIA drones since President Obama took office.


Al Qaeda militants based in Saudi Arabia mounted a terrorist campaign beginning in 2003 that killed dozens of Saudis, and they also attacked a number of the oil workers and oil facilities that lie at the heart of the Saudi economy. This prompted the Saudi government to mount such an effective crackdown that the few remaining al Qaeda leaders who were not killed or captured have in recent years fled south to Yemen where the remnants of al Qaeda in the Arabian Peninsula (AQAP) are now based.


From its new headquarters in Yemen AQAP has made serious efforts to attack the United States, sending the "underwear bomber" to blow up Northwest Flight 253 over Detroit on Christmas Day 2009 and also smuggling bombs on to U.S.-bound cargo shipments in October 2010.


None of these attempts were successful.


Yemen militants decimated


As a result of the threat posed by AQAP, the United States has mounted a devastating campaign against the group over the past three years. There was one American drone strike in Yemen in 2009. In 2012 there were 46. That drone campaign has killed 28 prominent members of the group, according to a count by the New America Foundation. Among them was the No. 2 in AQAP, Said al-Shihri, who was confirmed to be dead last week.


In the chaos of the multiple civil wars that gripped Yemen in 2011, AQAP seized a number of towns in southern Yemen. But AQAP has now been pushed out of those towns because of effective joint operations between U.S. Special Operations Forces, the CIA and the Yemeni government.


The Yemeni president, Abd Rabbuh Mansur Hadi, even went to the United Nations General Assembly in September where he publicly endorsed the use of CIA drones in his country, something of a first.


A couple of years ago, al Qaeda's Somali affiliate, Al- Shabaab ("the youth" in Arabic) controlled much of southern Somalia including key cities such as the capital Mogadishu.


Once in a position of power, Shaabab inflicted Taliban-like rule on a reluctant Somali population, which eroded its popular legitimacy. Shabaab was also the target of effective military operations by the military of neighboring Kenya, troops of the African Union and U.S. Special Operation Forces.


As a result, today the group controls only some rural areas and for the first time in two decades the United States has formally recognized a Somali government.


Mali conflict shows weakness of jihadist militant groups


Similarly, groups with an al Qaeda-like agenda captured most of northern Mali last year, a vast desert region the size of France. Once in power they imposed Taliban-like strictures on the population, banning smoking and music and enforcing their interpretation of Sharia law with the amputation of hands. The militants also destroyed tombs in the ancient city of Timbuktu, a UNESCO World Heritage site, on the grounds that the tombs promoted "idol worship."


None of these measures endeared the jihadist militants to the population of Mali. In the past weeks, as a relatively small force of some 2,000 French soldiers has rolled through Mali putting the militants on the run, the French have been cheered on by dancing and singing Malians.


When French soldiers are greeted as an army of liberation in an area of the world that in the past century was part of a vast French empire, you can get a sense of how much the jihadist militants had alienated the locals.


Last week the French military took the city of Timbuktu. The defeat of the al Qaeda-linked groups as effective insurgent forces in Mali is now almost complete.


What has just happened in Mali gets to the central problem that jihadist militant groups invariably have. Wherever they begin to control territory and population they create self-styled Islamic "emirates" where they then rule like the Taliban.


Over time this doesn't go down too well with the locals, who usually practice a far less austere version of Islam, and they eventually rise up against the militants, or, if they are too weak to do so themselves, they will cheer on an outside intervention to turf out the militants.


The classical example of this happened in Iraq where al Qaeda in Iraq (AQI) controlled Anbar Province, about a third of the country in 2006. AQI cadres ruled with an iron fist and imposed their ultrafundamentalist rule on their fellow Sunnis, who they killed if they felt they were deviating from their supposedly purist Islamic precepts.


This provoked the "Sunni Awakening" of Iraqi tribes that rose up against AQI. These tribes then allied with the U.S. military and by the end of 2007 AQI went from an insurgent group that controlled vast territories to a terrorist group that controlled little but was still able to pull off occasional spectacular terrorist attacks in Baghdad.


Jihadist violence still a threat


The collapse of core al Qaeda and a number of its key affiliates does not, of course, mean that jihadist violence is over. Such religiously motivated mayhem has been a feature of the Muslim world for many centuries. Recall the Assassins, a Shia sect that from its base in what is now Iran dispatched cutthroats armed with daggers to kill its enemies around the Middle East during the 12th and 13th centuries. In so doing the sect gave the world the useful noun "assassin."


And so while core al Qaeda and several of its affiliates and like-minded groups are in terrible shape, there are certainly groups with links to al Qaeda or animated by its ideology that are today enjoying something of a resurgence.


Most of these groups do not call themselves al Qaeda, which is a smart tactic, as even bin Laden himself was advising his Somali affiliate, Al Shabaab, not to use the al Qaeda name as it would turn off fundraisers because the shine had long gone off the al Qaeda brand, according to documents recovered at bin Laden's Abbottabad compound.


One such militant group is the Nigerian Boko Haram, which bombed the United Nations headquarters in Nigeria in 2011 and has also attacked a wide range of Christian targets in the country. However, the group has shown "no capability to attack the West and also has no known members outside of West Africa," according to Virginia Comolli of the London-based International Institute for Strategic Studies who tracks the group.



Ansar al-Sharia, "Supporters of Sharia," is the name taken by the militant group in Libya that carried out the attack against the U.S. consulate in Benghazi in September in which four Americans were killed. Similarly, in Yemen militants that are aligned with al Qaeda have labeled themselves Ansar al-Sharia.


But this new branding hasn't done the militants much good in either country. In Libya, shortly after the attack on the U.S. consulate, an enraged mob stormed and took over Ansar al Sharia's headquarters in Benghazi. And, as we have seen, in Yemen the jihadists have now been forced out of the towns in the south that they had once held.


One strong foothold in Syria


The one country where jihadist militants have a serious foothold and are likely to play an important role for some period in the future is in Syria. That is because of a perfect storm there that favors them. The Sunni militants in Syria are fighting the regime of Bashir al Assad, a secular dictator who is also an Alawite, which many Muslims believe to be a heretical branch of Shiism.


For the jihadists, Assad's secularism makes him an apostate and his Alawi roots also make him a heretic, while his brutal tactics make him an international pariah. This trifecta makes funding the Sunni insurgency highly attractive for donors in the Gulf.


And for the Arabs who form the heart of al Qaeda the fight against Assad is in the heart of the Arab world, a contest that happens to border also on the hated state of Israel. Also Syria was for much of the past decade the entry point for many hundreds of foreign fighters who poured into Iraq to join Al Qaeda in Iraq following the American invasion of the country. As a result, al Qaeda has long had an infrastructure both in Syria and, of course, in neighboring Iraq.


The Al Nusra Front is the name of arguably the most effective fighting force in Syria. In December the State Department publicly said that Al Nusra, which is estimated to number in the low thousands and about 10% of the fighters arrayed against Assad, was a front for Al Qaeda in Iraq (AQI).


Al Nusra certainly seems to have learned from AQI's mistakes. For starters, it doesn't call itself al Qaeda. Secondly, it hasn't launched a campaign to crack down on social issues such as smoking or listening to music and so has not alienated the local Sunni population as AQI did in Iraq.


Barak Barfi, a journalist and fellow at the New America Foundation who has spent several months on the ground in Aleppo in northwestern Syria reporting on the opposition to Assad, says Nusra fighters stand out for their bravery and discipline: "They are winning over the hearts and minds of Aleppo residents who see them as straight shooters. There is a regimented recruiting process that weeds out the chaff. Their bases are highly organized with each person given specific responsibilities."


Arab Spring countries seen as an opportunity


The chaotic conditions of several of the countries of the "Arab Spring" are certainly something al Qaeda views as an opportunity. Ayman al-Zawahiri the leader of the group, has issued 27 audio and video statements since the death of bin Laden, 10 of which have focused on the Arab countries that have experienced the revolutions of the past two years.


But if history is a guide, the jihadist militants, whether in Syria or elsewhere, are likely to repeat the mistakes and failures that their fellow militants have experienced during the past decade in countries as disparate as Somalia, the Philippines, Yemen, Iraq, Indonesia, Saudi Arabia and now, Mali.


That's because encoded in the DNA of al Qaeda and like-minded groups are the seeds of their own destruction because in power they rule like the Taliban, and they also attack fellow Muslims who don't follow their dictates to the letter. This doesn't mesh very well with these organizations' claims that they are the defenders of Muslims.


These groups also have no real plans for the multiple political and economic problems that beset much of the Islamic world. And they won't engage in normal politics such as elections believing them to be "un-Islamic."


This is invariably a recipe for irrelevance or defeat. In not one nation in the Muslim world since 9/11 has a jihadist militant group seized control of a country. And al Qaeda and its allies' record of effective attacks in the West has been non-existent since 2005.


With threats like these we can all sleep soundly at night.


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