Amnesty offer on overseas bank accounts attracts nearly 15,000 takers

U.S. tax authorities say publicity about a settlement with a giant European bank has at least helped inspire nearly 15,000 U.S. owners of overseas bank accounts that have been off the books for years to come forward and pay taxes on their holdings. Tuesday's announcement by the U.S. Internal Revenue Service, reported by the New York Times, attributes the response to the Oct. 15 end of an amnesty program under which U.S. taxpayers who declared their holdings were eligible for reduced penalties and avoid tax evasion charges. The catalyst was the future release of the identifies of more than 4,000 U.S. residents with offshore accounts with UBS, a Swiss megabank that offered anonymity to depositors. But UBS agreed in February to reveal names of 4,500 depositors with accounts totalling more than $18 billion as part of a settlement of a U.S. government lawsuit charging the bank with selling offshore financial products intended to enable tax evasion, the Times said. Under the terms of the deal, UBS also must admit criminal wrongdoing and pay $780 million in fines. and admit to criminal wrongdoing. “We are talking about billions of dollars coming into the U.S. Treasury,” said IRS chief Douglas Shulman, the Times said. head of the Mr. Shulman said. “We have now gained access to thousands of taxpayers and bank accounts that we have never had before.” More than half of the depositors revealed their holdings in the month before the deadline. "We had a flood at the end," Shulman said. Many of the accounts belonged to UBS customers but many did not, the Times said. The IRS said it was expanding its investigation of offshore tax havens around the world.

Kosovo conducts first election as independent nation

Low turnout by European standards failed to dim the excitement among government leaders in Pristina on Sunday as voters in Kosovo went to the polls for its first local election since declaring itself independent from Serbia last year. "Today we are showing that our country and its citizens have deserved independence, democracy and the European Union perspective," Prime Minister Hashim Thaci exulted after the vote, according to the Reuters international news service. Forty-five percent of Kosovo's 1.5 million voters turned out for the balloting, in which the population chose mayors and councilmembers in the new country's 36 municipalities. Winners will not be determined until runoff elections next month. Some analysts blamed the low turnout on frustration over the country's sluggish economy and 40 percent unemployment rate, Reuters said. "The faith is lost in Kosovo because of high corruption among the political parties," said Halil Matoshi, a local analyst. "People that vote today are mainly party militants." That's certainly possible, but it's a little hard to believe that the population of a brand new country that fought so hard to be independent would be jaded by politics. The turnout also was impacted by Serbian calls for a boycott by voters of Serbian descent, who make up seven percent of Kosovo's population. Kosovo declared independence from Serbia in 2008, nine years after NATO bombers drove Serbian forces from the then-province to stop the killing of ethnic Albanians, who make up 88 percent of the population. Kosovo's independence has only been recognized by 63 countries, primarily Western nations, including the United States. Serbia and Russia have refused to recognize the new country. Kosovo is the poorest country in Europe, with a per capita income of $2,300 annually, according to the U.S. Central Intelligence Agency.

Britain takes stock of Iraq war abuse claims

News from London that the British government has launched an investigation into more than 30 allegations of abusive conduct by its soldiers in Iraq makes it likely that the staunch U.S. ally has already realized that the price of war goes far beyond the cost in treasure. In a statement released Saturday, the British Ministry of Defence said many of the claims filed by Iraqi civilians have been pending for awhile but would be resolved, according to Cable News Network (CNN). "We are now looking into these new cases," a ministry spokesman told CNN. "Some of the cases we are looking at though go back a while, some are even from February this year, so all 30-something cases are at different stages in the investigation." An attorney for the Iraqis told Independent Television News, a CNN affiliate in London, that most of allegations involved sexual abuse of civilians. "There was a lot of sexual abuse," said the attorney, Paul Shiner, who likened the abuse to what happened at Abu Ghraib prison in Baghdad. Shiner said allegations include forcing a 14-year-old boy to commit sexual acts and the rape of an Iraqi man by two soldiers. "It is using sex as a mechanism to humiliate," Shiner said. "There are too many cases. Armed forces minister Bill Rammell said it was too early to jump to conclusions about the allegations but all would be investigated. "Over 120,000 British troops have served in Iraq and the vast, vast majority have conducted themselves to the highest standards of behavior, displaying integrity and selfless commitment," Rammell said. "While there have been instances when individuals have behaved badly, only a tiny number of individuals have been shown to have fallen short of our high standards." But soldiers who engage in sexual abuse of prisoners and children are not merely 'falling short' of some lofty standard. They are not just boys letting off a little steam. They are criminal deviants who have no place in human society, let alone handed sophisticated weaponry and entrusted with the defense of one of the world's great countries. It looks like the British armed forces, like the U.S. military, must at a minimum put more energy into understanding the psychological makeup of their soldiers and into understanding the effects of what is certainly unimaginable stresses on them. And if military leaders of both countries do not want to or are incapable of taking this seriously, both countries must find other military leaders who will and can.

Human Rights Watch report raises troubling questions about China

If it is indeed true that China's government is permitting local authorities to operate secret jails in Beijing where citizens are mistreated, it's time for the United States to re-evaluate trade relations with the world's most populous nation. Of course, we're not talking about returning to the days of complete non-engagement -- the U.S. and China are far too interdependent economically for that. Rather, it is because we are so tied together economically that China would be likely to respect and comply with reasonable demands to restrain its totalitarian tendencies. Beijing certainly understood that its decision to become part of the world economy meant unprecedented scrutiny of its internal affairs and, as a result, an obligation to conduct itself in a more transparent and civilized manner. That's why Thursday's report from the nonprofit group Human Rights Watch is so troubling. The report alleges that the government in Beijing permits local governments to operate a system of secret prisons in which prisoners are routinely mistreated, according to the New York Times. Abuse is routine even in detention centers run by the national government but is even worse in the unofficial jails, the report said. "We're talking about a country with torture in formal detention centers, and the black jails are 10 floors down" in terms of treatment of detainees, said Sophie Richardson, the group's advocacy director for Asia. Richardson said abuses that were widespread in China’s official prison system, which has some judicial supervision, were even worse in unofficial jails, which have no oversight. But China denies that the unofficial detention system exists. “There are no black jails in China,” Qin Gang, a Foreign Ministry spokesman, said in Beijing on Thursday, the Times said. “If citizens have complaints and suggestions about government work, they can convey them to the relevant authorities through legitimate and normal channels.” But Human Rights Watch said China's system for protecting detainees was being subverted by local officials, who had an incentive to block such complaints from reaching national officials. The issue is considered serious enough by the U.S. government for President Barack Obama to raise when he meets next week in Beijing with Chinese President Hu Jintao, according to National Security Council official Jeffrey Bader, the Times said.

Why does Iran need more time to decide if it will fulfill its nuclear obligations?

Monday's report from Vienna that a top U.S. diplomat said Iran should get more time to decide whether to fulfill the obligation to give up most of its nuclear fuel under a deal negotiated in Geneva in September does not make sense unless something else is going on that has been left out of the public record. Iran agreed to the deal to secure enriched uranium for its nuclear medicine facility and avoid stepped-up economic sanctions by the United States and other world powers; if Tehran wants out of the agreement, it should drop pretending and continue on the road to pariah statehood. "There have been communications back and forth. We are in extra innings in these negotiations. That's sometimes the way these things go," said Glyn Davies, the U.S. ambassador to the International Atomic Energy Agency, the United Nations-sponsored entity that monitors on nuclear activity worldwide. "We want to give some space to Iran to work through this," Davies said. "It's a tough issue for them, quite obviously, and we're hoping for an early, positive answer from the Iranians." But the Iranians have a history of stalling for time to continue developing their offensive capacities, and not to contribute to peaceful resolution of ongoing disputes. Iran contends its nuclear development is intended for peaceful purposes, despite its huge oil reserves and the revelation in September that it was building a secret enrichment plant at a military base near Qom. U.S. experts say the plant could not have enriched enough uranium for a civilian nuclear power plant and was almost surely designed for nuclear weaponry. Turkey has offered to mediate the international dispute, but it is apparent that Tehran is not willing to halt its activities despite the risk of sanctions. That's why Iran has not yet offered a formal reply to international demands that it comply with the agreement, and why it doesn't make sense to give the Islamic republic even more time to stall. If the international community's patience is "not infinite," as Germany's chief negotiator said the other day, it's time to bring on the "consequences" that U.S. Secretary of State Hillary Clinton warned of in Berlin. There is no reason to wait until the end of the year. Iran can continue to protest diplomatically all it wants, but it should do so without its stash of nuclear fuel and without its ability to threaten nearby countries.

Proposed Honduras deal collapses as violence increases in capital

A pair of bombings Friday rocked the capital of Tegucigalpa as a week-old agreement to form a unity government to resolve Honduras' four-month political formally collapsed, apparently beyond repair. The two explosions Friday caused little damage and no injuries but put an explanation point on the failure of regional efforts to end the crisis, which began with a military coup in June, according to the Reuters international news service. Honduras has been isolated internationally since coup leaders forced the elected leftist president, Manuel Zelaya, into exile and named legislative leader Robert Micheletti to replace him. Military leaders feared that Zelaya, an ally of Venezuela's famously anti-U.S. president, Hugo Chavez, was planning to move impoverished Honduras even further to the left and was planning to stay in office beyond the end of his term of office in January. Zelaya repeatedly denied that he had designs on extending his term. Under pressure from the United States and other nations, the two sides announced an agreement last week to form a unity government and to have Honduras' Congress vote on who would lead the country, but that deal broke down over differences about who would lead the cabinet in the interim. Zelaya, who was forced to leave the country in his pajamas but had sneaked back into Honduras and took refuge in Brazil's embassy, said Thursday that the deal was dead and urged voters to boycott the Nov. 29 election. "It's absurd what they are doing, trying to mock all of us, the people who elected me and the international community that supports me," Zelaya said, according to Reuters. "We've decided not to continue this theater with Mr. Micheletti." Zelaya refused to appoint ministers to the reconciliation cabinet, as called for in the agreement, prompting Micheletti to name all of them. Micheletti took to the airwaves to announce the appointments. "We've completed the process of forming a unity government," Micheletti told the country. "It represents a wide spectrum despite the fact that Mr. Zelaya did not send a list of representatives." But the Micheletti government surrounded the Brazilian embassy with tanks and soldiers on Friday, signaling the end of reconciliation efforts and a continuation of the standoff.

For whom the final bell tolls

News from Los Angeles that a federal judge has refused to dismiss civil fraud charges against Angelo Mozilo, the former CEO of Countrywide Financial Corp., and two of his associates means that regulators are still pursuing the fabulously wealthy wheeler-dealers whose recklessness helped cause the collapse of world financial markets and sparked a global recession. Of course, the U.S. Securities and Exchange Commission filed only civil charges against Mozilo and fellow top Countrywide officers David Sambol and Eric Sieracki, so any penalties assessed against them, assuming they're found guilty, will be financial. Hopefully, criminal charges against scores of financial roughriders responsible for the massive frauds that helped sink the country's housing market are still in the offing. Mozilo built Countrywide into the country's largest mortgage lender in large part through tens of billions of dollars worth of subprime and adjustable-rate mortgages, according to the Reuters international news service. But when the poorer-quality loans began failing, the SEC alleged, Mozilo reassured investors that Countrywide's portfolio was strong while using stock options to buy millions of dollars in company stock and then selling it for more than $139 million in profits, Reuters said. The SEC said in its complaint that Mozilo admitted in an e-mail to colleagues that Countrywide was "flying blind" about the quality of its loans. Countrywide had to be sold to Bank of America in a $2.5 billion deal arranged by federal regulators in 2008. U.S. Judge John Walter in Los Angeles found it possible, as the SEC's complaint alleged, that Countrywide's management was responsible for "the virtual abandonment of prudent underwriting guidelines and the resulting proliferation of poor quality loans, during the same period Countrywide was touting the superior quality of its underwriting guidelines and its loan portfolio." Mozilo's attorney, David Siegel said he was disappointed by the judge's decision but predicted that Mozilo would be "vindicated" in a trial. "Angelo Mozilo is an innocent man who helped millions of people find a home for more than 40 years," Siegel said, according to Reuters.