Tag Archives: Funds

U.S. House to pass nearly $500 billion more in coronavirus relief

By Patricia Zengerle and Richard Cowan

WASHINGTON (Reuters) – Hundreds of members of the U.S. House of Representatives will gather in Washington on Thursday to pass a $484 billion coronavirus relief bill, bringing the unprecedented total of funds approved for the crisis to nearly $3 trillion.

The measure is expected to be approved with solid bipartisan support in the Democratic-led House, but opposition by some members of both parties forced legislators to return to Washington despite stay-at-home orders intended to control the spread of the virus.

The Republican-led Senate passed the legislation on Tuesday, so approval by the House will send it the White House, where President Donald Trump has promised to quickly sign it into law.

The bill – which would be the fourth passed to address the crisis – provides funds to small businesses and hospitals struggling with the economic toll of a pandemic that has killed more than 45,000 Americans and put more than 22 million out of work.

Congress passed the last coronavirus relief bill, worth more than $2 trillion, in March.

Some Democrats are unhappy that the latest bill omits financial help for state and local governments reeling from the impact of lost revenue. Some Republicans are unhappy that so much government spending has been approved so quickly.

Trump has said he supports more funding for states, and has promised to back it in future legislation after fellow Republicans refused to include it in the current relief package.

Republican Senate Majority Leader Mitch McConnell suggested in a radio interview on Wednesday that states could go bankrupt, but said later he did not want states to use federal funds for anything unrelated to the coronavirus.

‘CONGRESS IS ESSENTIAL’

Echoing Trump, many Republicans also want the country – including Congress – to reopen more quickly than in the several more weeks recommended in many states.

“Congress is essential. The American public needs to see that we are working. The American public has to understand that we can do it in a safe manner so states and others can begin to open as well,” House Republican leader Kevin McCarthy said Wednesday at a news conference outside the Capitol.

House members from both parties said they were willing to risk travel to ensure that the legislation passed, some posting selfies on social media from airplanes on which passengers seemed outnumbered by crew.

“People who feel they can vote should be encouraged to vote. Those that don’t are not being pushed,” said Democratic Representative Pete Aguilar, one of a few party “whips” responsible for making sure floor votes occur without a hitch.

Aguilar spoke to Reuters on Tuesday upon landing in Washington from a “pretty empty” flight from Los Angeles.

The House will also vote on a select committee to study the reaction to the coronavirus outbreak. Democratic House Speaker Nancy Pelosi backed away, however, from voting on a measure to allow members to cast proxy votes on colleagues’ behalf.

Instead of pushing through the vote-by-proxy measure, Pelosi told Democrats she and McCarthy would have a bipartisan group of House lawmakers review remote voting by proxy.

Congress has not met in regular session since last month, and is in recess until at least May 4 because of the coronavirus.

House Republicans had opposed the proxy vote plan, saying there are already measures in place to ensure Congress can act in an emergency.

(Reporting by Patricia Zengerle and Richard Cowan; Editing by Peter Cooney)

World Bank pandemic bond under pressure as coronavirus spreads

By Karin Strohecker

LONDON (Reuters) – A World Bank bond designed to deliver funding to help the world’s poorest countries to tackle fast-spreading diseases has lost half its value as the coronavirus outbreak in China has fanned fears that investors could face hefty losses.

After the 2013-2016 Ebola outbreak that ravaged Sierra Leone, Guinea and Liberia and killed at least 11,300 people, the World Bank launched bond and insurance instruments under its Pandemic Emergency Financing umbrella in 2017 to establish a mechanism that would speedily deploy funds where needed.

However, the World Bank’s two so-called pandemic bonds came under scrutiny after the second-worst Ebola outbreak on record.

The 2018 epidemic in the Democratic Republic of Congo raged for about a year and killed more than 2,000 people, but it failed to trigger the release of funds to help affected countries.

The bonds, issued by the World Bank’s International Bank for Reconstruction and Development (IBRD), offer investors high coupons in return for the risk of having to forgo some or all their money in the event of pandemic outbreaks of a number of infectious diseases, with the funds channeled instead to countries in need of aid.

With the coronavirus outbreak having infected more than 74,000 people and claimed more than 2,000 lives, prices for the IBRD pandemic bond with the highest investment risk – the Class B notes – have come under increasing pressure.

PRICE SLIDE

Losses to investors depend on the number of deaths and geographical spread. In the most extreme case, a global outbreak – defined as more than 2,500 deaths across more than eight countries with a certain number of fatalities in each country – will wipe out the bondholder’s entire investment.

Offer prices quoted by one broker have slipped as low as 45 cents in the dollar, while another is quoting 62.5 cents, market sources said. In the midst of the 2018 Ebola outbreak the bond traded at a little more than 70 cents.

“The market is clearly starting to price in a chance that the tranche most at risk could be affected,” said an investor who holds some of the World Bank’s pandemic debt.

“We all get the feeling that epidemics have become more and more frequent – we had SARS and Ebola and swine flu all within a short space of time.”

The bonds issued by the IBRD are not only aimed at providing relief for outbreaks of coronavirus or Ebola, but also for pandemics caused by infectious diseases such as Marburg, Crimean-Congo hemorrhagic fever or Lassa fever.

Both of the bonds are often closely held and largely illiquid. Filings show that the riskiest of the two <XS164110150=>, maturing on June 15, is held by asset managers including Baillie Gifford, Amundi and Oppenheimer.

The second of the bonds – a $225 million issue <XS164110117=> – is also exposed to a coronavirus outbreak but considered less at risk because its different trigger criteria means bondholders face a loss of 16.7%.

UNDER FIRE

For all the good intentions and the prospect that a payout to poor countries might be on the cards, the bonds remain under fire for failing to deliver sufficient or timely aid.

One point of contention is the length of time before a payout is triggered. In the case of a coronavirus outbreak for the Class B notes, this is 84 days from when the World Health Organization (WHO) publishes its first “situation report”. In the current outbreak, that would be in mid-April.

Think tanks and some policymakers say the focus should be on shoring up healthcare systems and early detection facilities in vulnerable parts of the world that are already overburdened with cases of Ebola, measles, malaria and other deadly diseases.

“The money for these bonds could have been better spent in providing the WHO with funds or help strengthen healthcare provisions in poor countries at risk,” said Bodo Ellmers, director of sustainable development finance at Global Policy Forum, an independent policy watchdog.

“It was an ideology-driven idea to get the private sector involved in humanitarian and emergency finance – and I think we have to say this has failed.”

The World Bank declined to comment.

(Reporting by Karin Strohecker; Editing by David Goodman)

New Jersey woman raises $325,000 for homeless Samaritan

New Jersey woman raises $325,000 for homeless Samaritan

(Reuters) – A homeless man who spent his last $20 on a New Jersey woman whose car ran out of gas has received more than $325,000 in charitable pledges after she started a fund-raising drive to reward him for his generosity.

Kate McClure, 27, launched a page on GoFundMe.com that had raised $325,420 for the man, Johnny Bobbitt Jr., as of Friday afternoon. The number was rising steadily throughout the day.

Bobbitt describes himself as a 34-year-old former U.S. Marine and paramedic who has been homeless for about a year, according to NJ.com, the website whose story on the encounter helped spark the fundraising interest.

McClure said on the GoFundMe website she was driving on Interstate 95 one night last month when she ran out of gas. She then met Bobbitt, who had been sitting on the side of the road with a panhandling sign.

He told her go back to her car and lock her doors, McClure said.

“A few minutes later, he comes back with a red gas can. Using his last 20 dollars to make sure I could get home safe,” McClure said on GoFundMe.com.

Bobbitt told BBC Radio on Friday that he considered the side of the road an unsafe place for anyone, especially for a woman by herself.

“She just seemed like she needed help,” Bobbitt said. “The situation I’m in, people help me every day. When I have the chance to help someone else, it’s the right thing to do.”

After the highway incident, McClure went back periodically to check on Bobbitt, bringing warm clothes and some cash. Eventually she and her husband decided to start a formal effort to raise money for rent, a car and other expenses until he can find a job.

The fund has grown by thousands of dollars in recent days as widespread media coverage combined with goodwill surrounding the Thanksgiving holiday appeared to have unleashed a groundswell.

(Reporting by Daniel Trotta; Editing by Tom Brown)

Iran top judge demands U.S. release assets, jailed Iranians

A staff member removes the Iranian flag from the stage during the Iran nuclear talks in Vienna, Austria July 14, 2015.

DUBAI (Reuters) – Iran’s top judge called on the United States on Monday to release Iranians held in U.S. jails and billions of dollars in Iranian assets, days after Washington urged Tehran to free three U.S. citizens.

The statement by Ayatollah Sadeq Larijani capped a week of heightened rhetoric over the jailing and disappearance of Americans in Iran and new U.S. sanctions against the Islamic Republic.

“We tell them: ‘You should immediately release Iranian citizens held in American prisons in violation of international rules and based on baseless charges’,” Larijani said in remarks carried by state television.

“You have seized the property of the Islamic Republic of Iran in violation of all rules and in a form of open piracy, and these should be released.”

On Friday, U.S. President Donald Trump urged Tehran to return Robert Levinson, an American former law enforcement officer who disappeared in Iran more than a decade ago, and release businessman Siamak Namazi and his father Baquer, jailed on espionage charges.

Trump said Iran would face “new and serious consequences” if the three men were not released. U.S. authorities imposed new economic sanctions on Iran on Tuesday over its ballistic missile program.

Earlier this month, Iran said another U.S. citizen, Xiyue Wang, a graduate student from Princeton University, had been sentenced to 10 years in jail for spying.

According to former prisoners, families of current ones and diplomats, Iran sometimes holds on to detainees for use for prisoner exchanges with Western countries. Tehran has denied this.

In a swap deal in 2016, Iranians held or charged in the United States, mostly for sanctions violations, were released in return for Americans imprisoned in Iran.

Also that year, Iran filed an International Court of Justice complaint to recover $2 billion in frozen assets that the U.S. Supreme Court had ruled must be turned over to American families of people killed in bombings and other attacks blamed on Iran.

 

 

(Reporting by Dubai Newsroom; editing by John Stonestreet)

 

New York attorney general looking at Eric Trump charity’s payouts

FILE PHOTO - Eric Trump during the grand opening of the Trump International Hotel and Tower in Vancouver, British Columbia, Canada on February 28, 2017. REUTERS/Nick Didlick/File Photo

By Ian Simpson

(Reuters) – New York’s attorney general is looking into a report that the Eric Trump Foundation funneled more than $1 million from charity golf tournaments into President Donald Trump’s business, a spokesman for the attorney general said on Friday.

Forbes magazine reported this week that the charity run by Eric Trump, the president’s second-oldest son, paid the Trump Organization to use its properties for charity events in recent years even though Eric Trump had told donors that the golf course and other assets were being used for free, so that just about all the money donated would help sick children.

Forbes reported that based on filings from the Eric Trump Foundation and other charities, more than $1.2 million “has no documented recipients past the Trump Organization.”

Eric Soufer, a spokesman for New York Attorney General Eric Schneiderman, said in an email that his office was looking into issues raised by the Forbes story.

Soufer did not immediately respond to a later request for details about the examination.

The Democratic attorney general’s office already is investigating allegations of self-dealing at the Donald J. Trump Foundation, the Republican president’s charity.

Trump, a New York real estate developer, said in December that he would dissolve the Donald J. Trump Foundation, but Schneiderman’s office has said it could not be wound down while the investigation was ongoing.

Forbes also reported that although donors to the Eric Trump Foundation were told all its money was going to help St. Jude Children’s Research Hospital in Memphis, Tennessee, fight pediatric cancer, more than $500,000 was re-donated to other charities.

Many of those charities “were connected to Trump family members or interests, including at least four groups that subsequently paid to hold golf tournaments at Trump courses,” Forbes said.

Amanda Miller, who works for the Trump Organization and who identified herself in an emailed response to a Reuters query as a “spokesperson for Eric Trump,” said the Eric Trump Foundation would cooperate fully with Schneiderman’s office.

Eric Trump is executive vice president of development and acquisition for the Trump Organization.

“During the past decade, the Eric Trump Foundation has raised over $16.3 million for St. Jude Children’s Research Hospital, including more than $3.6 million to St. Jude and other worthwhile causes just in 2016 alone,” Miller said in the email.

Eric Trump said in a tweet on Thursday that he had raised the money for St. Jude with an expense ratio of less than 12.3 percent. “Let’s not politicize pediatric cancer,” he said.

On his foundation’s website, Eric Trump said he had ceased direct fundraising efforts at the end of 2016 “in order to avoid the appearance or assertion of any impropriety and/or a conflict of interest.”

(Reporting by Ian Simpson; Editing by Leslie Adler)

U.S. suspends aid to Kenyan health ministry over corruption concerns

FILE PHOTO: A riot policeman stands guard as doctors chant slogans after their case to demand fulfilment of a 2013 agreement between their union and the government that would raise their pay and improve working conditions, was heard at the employment and labour relations courts in Nairobi, Kenya, February 13, 2017. REUTERS/Thomas Mukoya/File Photo

By Katharine Houreld

NAIROBI (Reuters) – The U.S. government has suspended $21 million in direct aid to Kenya’s Ministry of Health amid concern over corruption, the embassy said on Tuesday, giving emphasis to an issue that is a growing liability for the government before August elections.

Support for HIV drugs and other health programs outside the ministry would continue, the embassy said, adding that the United States invests more than $650 million on health in Kenya annually.

“We took this step because of ongoing concern about reports of corruption and weak accounting procedures at the Ministry,” the statement from the embassy said. “We are working with the Ministry on ways to improve accounting and internal controls.”

The announcement adds weight to a rising number of scandals plaguing the government of President Uhuru Kenyatta, who is seeking a second and final five-year term in presidential, parliamentary and local elections on Aug. 8.

The so-called Afya House scandal, named after the building housing the Ministry of Health, was based on an audit report leaked to Kenyan media in October.

The audit showed the ministry could not account for 5 billion Kenyan shillings ($49 million) and funds meant for free maternity care had been diverted, newspapers reported.

Officials at Kenya’s anti-corruption commission did not return calls seeking comment on Tuesday, but the ministry of health issued a statement.

“The ministry has been raising matters raised in the internal audit investigations following the Quality Assurance audit by the National Treasury,” the statement said.

“Other autonomous institutions … are undertaking independent investigations.”

Last year, Kenya’s anti-graft chief told Reuters that a third of its state budget – the equivalent of about $6 billion – was lost to corruption every year.

The government disputed the figure, blaming poor paperwork. In October, Kenyatta infuriated voters by telling them he could not tackle corruption because his “hands were tied”. He criticized the judiciary and other agencies for not doing more about the problem.

Kenyan doctors and nurses say the corruption means that hospitals are often left without basic equipment, from drugs to gloves. Kenyan doctors in public hospitals went on strike from December to March, demanding a pay increase and improved working conditions.

(Editing by Larry King)