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Wealthy Russian businessman arrested in London on suspicion of multiple offenses, including money laundering

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December 4, 2022
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Wealthy Russian businessman arrested in London on suspicion of multiple offenses, including money laundering

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CNN
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A wealthy Russian businessman has been arrested as part of a “major operation” on suspicion of multiple offenses, the United Kingdom’s National Crime Agency said in a statement Saturday.

The 58-year-old man was arrested Thursday at his “multi-million-pound residence in London by officers from the NCA’s Combatting Kleptocracy Cell” on suspicion of committing offenses including money laundering, conspiracy to defraud the Home Office – the UK government department for immigration and passports – and conspiracy to commit perjury, the agency said.

A 35-year-old man, employed at the premises, was also arrested “nearby” on suspicion of money laundering and obstruction of an officer “after he was seen leaving the address with a bag found to contain thousands of pounds in cash,” according to the statement.

A third man, aged 39, who the agency said is the former boyfriend of the businessman’s current partner, was arrested at his home in Pimlico, London, for offenses including money laundering and conspiracy to defraud, according to the statement.

A person close to the investigation has given CNN more detail on two of the men arrested, saying the 39-year-old man was a national of Russia, Israel, and the UK and the 35-year-old man was a Polish national. The source told CNN the bank notes the 35-year-old was carrying have not yet been counted but were suspected to be in the tens of thousands and in British currency.

The three individuals have been interviewed by authorities and have been released on bail, according to the statement.

The Russian Embassy in London has sent a note to British authorities regarding the detention of a Russian citizen, according to a statement from the embassy made available to Russian state news agency RIA Novosti.

“The Russian Embassy in London has asked the British authorities for clarification in connection with the information from the National Crime Agency about the alleged detention of a Russian citizen in London,” reads the note, according to RIA Novosti.

“The NCA’s Combatting Kleptocracy Cell, only established this year, is having significant success investigating potential criminal activity by oligarchs, the professional service providers that support and enable them and those linked to the Russian regime,” said the agency’s director general Graeme Biggar.

“We will continue to use all the powers and tactics available to us to disrupt this threat,” he added.

More than 50 officers were involved in the operation at the businessman’s London property, the statement said. “A number of digital devices and a significant quantity of cash was recovered following extensive searches by NCA investigators,” according to the statement.

So far, the agency says it has secured nearly 100 disruptions “against Putin-linked elites and their enablers” and has taken direct action against “a significant number of elites who impact directly on the UK.”

The agency is also targeting “less conventional routes used to disguise movements of significant wealth, such as high value asset sales via auction houses,” according to the statement.

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Can Lula slam the brakes on Brazil’s rampant deforestation? It will be harder this time

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December 3, 2022
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Can Lula slam the brakes on Brazil’s rampant deforestation? It will be harder this time

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Itu, Sao Paulo State, Brazil
CNN
 — 

The drive through Sao Paulo state in Brazil is decidedly unremarkable, blocks and blocks of high-rise buildings give way to commuter highways and eventually to gentle rolling hills. It is hardly the scene where one would expect to find the climate’s salvation.

And yet as Luis Guedes Pinto climbed his sky-high perch above a reclaimed swath of Brazil’s Atlantic Forest, he explained you don’t have to go to the Arctic or even the Amazon to learn how to nurse Earth’s forests back to health.

“This project doesn’t change a big landscape, but it shows it’s possible to bring back life, to bring back water, to bring back biodiversity, to the center of the state of Sao Paulo,” said Pinto, the CEO at SOS Mata Atlântica, as he pointed down to two square miles of forest restoration.

Pinto’s organization is a non-profit devoted to rehabilitating the swath of forest on Brazil’s Atlantic coast. The forest itself is home to more than 145 million Brazilians, and — just as the Amazon rainforest has been ravaged by deforestation in the past several years — around three-quarters of it has already been wiped out by urban and infrastructure development and aggressive agribusiness practices.

“We need to plant and replant, but we cannot lose another acre,” Pinto said as he guided CNN through a nursery with more than 50 species of carefully cultivated trees and plants in what was once degraded, drought-prone pasture. “A forest we replant is not going to be the same as a forest we cut down. Some of the forests we’re losing have trees in them that are hundreds of years old.”

These are the seedlings of a forest’s revival. In just 15 years, it has become a thriving eco-lab with a healthy water table, trees, plants and animals. It is a completely different landscape to the pasture land on its borders, where drought-stricken grass overtakes acres of what was previously forest.

The SOS Mata Atlantica was able to recover this patch of pasture and restore it into a wild habitat.

A volunteer plants a tree at the SOS Mata Atlantica compound. Different species of plants grow at different rates so volunteers have to keep coming back to reforested areas for years before a habitat is fully restored.

As president-elect Lula Da Silva comes into power, projects like this are now at the crossroads of climate and political history in Brazil, a country that is home to one of the planet’s most significant stores of biodiversity.

For nearly four years, the government of President Jair Bolsonaro was accused of undoing the environment progress of Lula, who served as president from 2003 through 2010. Data from Brazil’s National Institute for Space Research show the rate of deforestation under Bolsonaro’s presidency climbed by more than 70% from 2018 to 2021.

Already the Amazon rainforest is emitting more carbon dioxide than it absorbs in some locations — a shift that could have an enormous negative impact on global warming trends. And scientists warn the precious rainforest is nearing a point of irreversible decline and is less capable of recovering from disturbances like drought, logging and wildfires.

In pictures: Lula da Silva, Brazil’s next president


Lula’s record as former president shows his government was able to cut deforestation rates dramatically by the end of his term in 2010. And his new promise goes even further: to reach zero deforestation in Brazil. This would be substantially more ambitious than his previous government’s goal to eliminate illegal deforestation, not deforestation of all kinds.

Speaking at the UN’s COP27 climate summit on Wednesday in Sharm el-Sheikh, Egypt, Lula told a jam-packed conference room that “Brazil is back to resume its ties with the world,” and there is “no climate security for the world without a protected Amazon, and we will do whatever it takes to have a different vision in the degradation.”

He also promised to punish those who are responsible for the deforestation in Amazon, and announced a new ministry for indigenous people “so that the indigenous people themselves can present and propose to the government about policies that can derive their survival with dignity and security, peace and sustainability.”

His remarks were met with huge applause that trickled out of the conference room into the hallway, where people who were not able to get into the crowded room, but eager to hear Lula speak on the climate crisis, watched from their phones.

But Bolsonaro allies, who continue to control congress, could make climate action much more difficult over the next four years. One of those allies is Ricardo Salles, Bolsonaro’s former environment minister and now a newly elected lawmaker in Brazil’s conservative-leaning congress.

Former environment minister and Brazilian lawmaker Ricardo Salles argues the best way to protect the Amazon is to make it economically viable for the populations living in and around it.

In an interview with CNN, Salles said he and others are willing to work with Lula’s incoming administration on climate goals, but cautioned it should not come at the expense of economic development.

“I was the only guy as minister of environment in the entire history of the ministry who brought these economic questions to the table,” said Salles. During his time as environment minister, the Bolsonaro government often described development and economic activity in the Amazon as vital to longterm sustainability – an approach decried by many environmental activists in the country.

Salles says Brazil will have to work closely now with international allies into order to tap the billions of dollars in climate funds and carbon credits now on offer both by governments and businesses worldwide.

But climate advocates argue neither Brazil nor the planet can afford the kind of compromises now being advocated by Bolsonaro allies.

Indigenous activist Txai Surui supported Lula da Silva during his latest presidential campaign, but vows to oppose him should his policies go against the environment.

“We don’t need to destroy to develop. We can do that in harmony with nature. And it’s the indigenous peoples who teach that,” Brazilian indigenous leader Txai Suruí told CNN.

Suruí said she is optimistic Lula’s government will make good on promises to act quickly, despite the economic pressure from not only Bolsonaro allies, but millions in the Amazon whose livelihoods depend on its commercial development.

“Because that agenda — of the Amazon, of climate change, of the environment — it’s a global agenda,” she said. “If Lula does not address it, it won’t just be us, indigenous people, that will be knocking on his door, it’ll be the entire world.”

The urgency to commit to those goals is not lost on Pinto who says it’s not just Brazil’s future that is at stake.

“We need to understand as a nation that is key for the planet and that decisions we will make will be important for us but also for others,” he says.

The SOS Mata Atlântica nursery, where hundreds of saplings are grown before being replanted in the wilderness.

This story has been updated with Lula’s remarks at the UN climate summit.

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Turn Your Rising Home Equity Into Cash You Can Use

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December 3, 2022
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Turn Your Rising Home Equity Into Cash You Can Use

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Turn Your Rising Home Equity Into Cash You Can Use

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Brazil’s Bolsonaro challenges election loss, files petition demanding votes be annulled

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December 2, 2022
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Brazil’s Bolsonaro challenges election loss, files petition demanding votes be annulled

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CNN
 — 

Outgoing Brazilian President Jair Bolsonaro has filed a petition with Brazil election authorities formally contesting the results of this year’s fiercely contested presidential vote.

Bolsonaro narrowly lost a run-off vote last month to leftist rival Luiz Inacio Lula da Silva, popularly known as “Lula,” who is due to be inaugurated as president on January 1.

Since then Bolsonaro has stopped short of explicitly conceding that he lost, but has previously said he would “continue to fulfill all commandments of the constitution” – leading observers to believe that he would cooperate with the transfer of power.

But in the petition filed on Tuesday, Bolsonaro and the leader of his right-wing Liberal Party allege that some voting machines had malfunctioned and any votes cast through them should be annulled.

Citing analysis done by a company hired by Bolsonaro’s party, the complaint claims that removing those votes would hand Bolsonaro victory.

Responding to Bolsonaro’s petition, election authorities said that since the same voting machines were used in the first round of elections, Bolsonaro and his party must amend their complaint to include those results in order for the process to make its way through the courts, affiliate CNN Brasil reported.

Alexandre Moraes, chief justice of the Supreme Electoral Court, gave Bolsonaro and his petitioners 24 hours to amend their submission.

But on Wednesday, Bolsonaro’s Liberal Party responded requesting that the scope remain limited to second-round voting.

Liberal Party officials also held a press conference in which they doubled down on claims that some ballots used in the second round of elections could be liable to error, but claimed they did not aim to contest the results.

“We do not intend to stop anyone from taking office, just that they follow the law. If there are indications [of error], this ballot cannot be taken into account,” said Liberal Party President Valdemar Costa Neto.

“We are not asking for a new election, that would be crazy,” he added.

Last month’s heated election came amid a tense and polarized political climate in Brazil, which has been struggling with high inflation, limited growth and rising poverty.

Lula da Silva received more than 60 million votes – according to the election authority’s final tally – the most in Brazilian history and breaking his own record from 2006.

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Brittany Higgins: Rape case that shook Australian politics abandoned over mental health fears

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December 2, 2022
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Brittany Higgins: Rape case that shook Australian politics abandoned over mental health fears

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Sydney, Australia
CNN
 — 

Prosecutors in Australia have ended high-profile legal action against a former government staffer accused of raping a colleague inside Parliament House, saying a retrial would pose a “significant and unacceptable risk” to the woman’s life.

The Australian Capital Territory (ACT) director of public prosecutions, Shane Drumgold, told reporters Friday that the risk to Brittany Higgins’ mental health must be put ahead of the need for a resolution in the case.

Higgins, a former federal government staffer, alleges she was raped by former colleague Bruce Lehrmann in the office of Australia’s then defense minister in 2019.

Lehrmann pleaded not guilty to sexual intercourse without consent and maintains he has never engaged in intercourse with Higgins, consensual or otherwise.

The charge has now been dropped.

Drumgold said he had received “compelling evidence” from two independent medical experts that the “ongoing trauma associated with this prosecution presents a significant and unacceptable risk” to Higgins’ life.

“The evidence makes it clear that this is not limited to the harm of giving evidence in a witness box,” he said.

The case went to trial in Canberra in October, but the judge ordered a retrial due to jury misconduct. The retrial had been set to take place in February 2023.

However, Drumgold told reporters Friday that a retrial was no longer in the public interest.

“This has left me no option but to file a notice declining to proceed with the retrial of this matter, which I have done this morning. This brings the prosecution to an end,” Drumgold said.

Higgins is currently in hospital, according to a statement from her friend Emma Webster on Friday.

“The last couple of years have been difficult and unrelenting,” Webster stated. “Brittany is extremely grateful for all the support she has received, particularly from our mental health care workers.”

Brittany Higgins leaves court on October 14, 2022.

In the original trial, the judge dismissed the 12-member jury deliberating the rape verdict after it was revealed a juror had researched the allegations and taken that information into the jury room.

Higgins alleged Lehrmann had raped her in 2019 after the two shared a taxi to Parliament House following a night out with colleagues in the capital.

Higgins approached police soon after the alleged incident but didn’t make a formal complaint, citing fears that taking the matter further could damage her career.

But in 2021, she spoke to media and the case made headlines, not only because of the location of the alleged attack but due to Higgins’ claims that she had been discouraged from coming forward to avoid political fallout before the 2019 election.

Lehrmann was arrested and charged last year but the trial was delayed, partly due to fears that publicity around the case meant he wouldn’t get a fair hearing.

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US blocks sugar imports from top Dominican producer over forced labor concerns

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December 1, 2022
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US blocks sugar imports from top Dominican producer over forced labor concerns

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CNN
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US authorities will block imports of sugar produced in the Dominican Republic by company Central Romana, on suspicion of forced labor at its facilities.

US Customs and Border Protection (CBP) will detain the company’s raw sugar and sugar-based products at all US ports of entry effective Wednesday, the agency said in a statement published that day, citing “inhumane practices.”

Central Romana is the largest producer of sugar in the Dominican Republic, acording to its website.

The decision to ban its sugar is “based on information that reasonably indicates the use of forced labor in its operations,” reads the CBP statement.

“CBP identified five of the International Labour Organization’s 11 indicators of forced labor during its investigation: abuse of vulnerability, isolation, withholding of wages, abusive working and living conditions, and excessive overtime,” it said.

Central Romana said the move was cause for “great concern” in a statement published on Twitter.

“The rationale behind this measure does not reflect the policies and practices of Central Romana,” it said, adding that the company has spent “millions” to improve living and working conditions, “guaranteeing living wages and increased benefits,” and offering educational and training programs.

The company, which started operating in 1912, also works in a number of different industries, including real estate; airport and port operations; and meat and dairy production, according to the company website.

US authorities have been investigating labor issues in the Dominican Republic’s sugar industry for a number of years.

“While the country’s Ministry of Labor and sugar companies have made important progress, concerns remain about dangerous working conditions, verification of pay and hours, unsuitable living conditions, workers’ precarious legal status and other potential labor rights abuses,” the US Department of Labor said in a statement published September 13.

The department also added sugarcane from the Dominican Republic to its List of Goods Produced by Child Labor or Forced Labor that month.

Wednesday’s order “demonstrates CBP’s commitment to protect human rights and international labor standards and to promote a fair and competitive global marketplace,” said CBP Acting Commissioner Troy Miller in the CBP release.

The Caribbean nation’s sugar industry has traditionally relied on workers from neighboring Haiti. In recent years the Dominican Republic has stepped up efforts to expel undocumented Haitian migrants amid rising xenophobia.



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Huge trade partner and ‘systemic rival.’ Europe has a China problem

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December 1, 2022
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Huge trade partner and ‘systemic rival.’ Europe has a China problem

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London
CNN Business
 — 

Europe is becoming increasingly reliant on China for trade, and many of its top companies are eager to invest in the world’s second biggest economy despite the disruption caused by Covid lockdowns.

But a souring relationship with an increasingly unpredictable Beijing, regret about the price Europe has paid for getting too close to Russia, and rising geopolitical tension has some EU officials considering whether the bloc should start to reduce its exposure.

It’s a calculation EU Council President Charles Michel will be weighing up Thursday as he visits Chinese leader Xi Jinping for talks aimed at shoring up diplomatic ties.

A lot has happened since the last time an EU president — appointed by the leaders of the 27 EU member states — met with Xi in person four years ago.

The Covid-19 pandemic, Russia’s invasion of Ukraine, and tit-for-tat sanctions between China and EU lawmakers have strained relations since. The United States, which imposed controls on exports of semiconductors to China in October, is reportedly exerting pressure on Europe to adopt a similarly hard line.

Michel’s spokesperson, Barend Leyts, said in a statement last week that Michel’s visit provides a “timely opportunity” for Europe and China to engage on matters of “common interest.” He did not specify which subjects would be discussed.

But some within Europe are growing wary of close relations with China. The bloc has been badly burned this year by its historic reliance on Russia as its main energy supplier, and diversification has shot up the political agenda.

The receiving station for the now-defunct Nord Stream 2 gas pipeline stands at twilight on February 02, 2022 near Lubmin, Germany. Nord Stream 2, which is owned by Russian energy company Gazprom, was due to transport Russian natural gas from Russia to Germany before Berlin halted the project's certification in February after Moscow invaded Ukraine.

Those concerns bubbled up last month when German Chancellor Olaf Scholz flew to Beijing with a delegation of top business leaders to meet Xi, a move intended to shore up Germany’s second biggest export market after the US.

The bloc is in a similar bind.

“Any problems you have from a political and strategic level [between the EU and China], they tend to spill over to the economic level,” Ricardo Borges de Castro, associate director at the European Policy Centre, told CNN Business.

Both sides have a lot invested in their partnership. The total value of the goods trade between China and Europe hit €696 billion ($732 billion) last year, up by nearly a quarter from 2019.

China was the third largest destination for EU goods exports, accounting for 10% of the total, according to Eurostat data. China is Europe’s biggest source of imports, accounting for 22% in 2021.

“The European market’s importance as a destination for Chinese exports is around double that of the Chinese market for Europeans,” Jörg Wuttke, president of the EU Chamber of Commerce in China (ECCC) wrote in a September report.

Overall, the relationship is simply “too big to fail,” according to Borges de Castro. Europe is not seeking to decouple from the lucrative Chinese market, he added.

“I don’t see [the EU’s strategy] as a decoupling strategy. I think the EU strategy, for the moment, is a diversification strategy… the lesson [from Russia] is that you cannot have a single provider,” he said.

Machinery, vehicles, chemicals, and other manufactured goods account for the vast bulk of goods traded between the two powers, according to Eurostat.

“European companies have done extremely well here and the overall long term outlook is very positive,” ECCC Secretary General Adam Dunnett told CNN Business, adding that he expects European company revenues to keep growing in China over the next decade.

There are areas where Europe is dependent on Beijing, namely for the supply of rare earth metals required to make hybrid and electric vehicles, and wind turbines. Europe’s solar panels are also mostly manufactured in China.

But those dependencies shouldn’t be exaggerated, Dunnett said.

“When you look at some of the broader things that China exports to the EU such as furniture and consumer goods, a lot of those things you can get elsewhere,” he said.

Even so, the United States may exert more pressure on Europe to pull away from China, Borges de Castro noted. In early October, Washington banned Chinese firms from buying its advanced chips and chip-making equipment without a license.

Benjamin Loh, the head of Dutch chipmaker ASM International, told the Financial Times on Wednesday that the US was “putting a lot of pressure” on the Dutch government to take a similarly tough stance.

The pressure may already be beginning to show. Germany last month blocked the sale of one of its chip factories to a Chinese-owned tech company because of security concerns.

Economic ties between Brussels and Beijing, though mutually beneficial, have frayed in other ways in recent years.

Last year, Chinese direct investment into the European Union dropped to its second lowest level since 2013, only behind 2020, according to analysis by the Rhodium Group, a research firm. It has fallen almost 78% since 2016.

“The level of Chinese investment in Europe is now at a decade low,” Agatha Kratz, director at Rhodium Group, told CNN Business, citing Beijing’s strict capital controls and greater scrutiny by EU regulators.

EU investment into China has also become more concentrated. Between 2018 and 2021, the top 10 European investors in China, including those from the United Kingdom, made up almost 80% of the continent’s total investment in the country, Rhodium Group data shows.

And just four German companies — automakers Volkswagen

(VLKAF)
, BMW, and Daimler

(DDAIF)
, and chemicals giant BASF

(BASFY)
— made up more than one third of all European investment in those four years.

An investment deal between Beijing and Brussels was shelved last year after EU lawmakers slapped sanctions on Chinese officials over alleged human rights abuses, prompting China to retaliate with its own penalties.

The deal, agreed in principle in 2020 after years of talks, was designed to level the playing field for European companies operating in China, who have long complained that Beijing’s subsidies have put them at a disadvantage.

EU diplomats said in April that a “growing number of irritants” were hurting relations, including China’s tacit acceptance of Russia’s war in Ukraine. They have described China as “a partner for cooperation and negotiation, an economic competitor and a systemic rival.”

The most pressing issue for European businesses in China, according to Dunnett, is its stringent zero-Covid policy.

“For the last year, it’s been the Covid carousel, [the] Covid rollercoaster,” he said. “Every time you think [it was] about to open up, something pulls us back,” he added.

Over the weekend, thousands of protestors took to streets across China in a rare series of demonstrations against the country’s strict Covid controls. Some restrictions have since been lifted in Shanghai and other major cities.

Beijing’s uncompromising approach is helping to further dampen foreign investment in the country, especially among smaller companies, Raffaello Pantucci, a senior associate fellow at the Royal United Services Institute, a security research group, told CNN Business.

“The general business environment in China is perceived as becoming harder to navigate, and while companies still feel they have to engage given its size and potential, increasingly small to medium sized companies are giving up,” he said.

— Laura He contributed reporting.

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Haiti’s cholera death toll rises to 136 as outbreak gets ‘worse and worse every day’

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November 30, 2022
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Haiti’s cholera death toll rises to 136 as outbreak gets ‘worse and worse every day’

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CNN
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A deadly resurgence of cholera in Haiti has claimed 136 lives so far, according to the Caribbean nation’s health ministry.

Eighty-nine of the people who were infected died in a hospital or in cholera treatment centers, while 47 of them died at home, according to the Haitian Health Ministry’s statement.

The Haitian government is working with international health organizations to respond to the crisis.

“We have been receiving 250 people a day lately. There’s a surge in cases in most parts of the metropolitan area. This is very concerning for us as we have a limited capacity with around 350 beds in our cholera treatment centers,” said Alexandre Marcou, a communications officer for medical NGO Médecins Sans Frontières, speaking to CNN on Wednesday.

A worker disinfects around a clinic run by Doctors Without Borders in Cité Soleil, Port-au-Prince, Haiti, October 7, 2022.

People who live in areas with shortages of safe drinking water or inadequate sanitation are vulnerable to cholera, which can result from consuming bacteria-contaminated food or water.

Although vaccines exist and symptoms can be “easily treated,” according to the World Health Organization, cholera remains an insidious killer through dehydration in the developing world.

Just one month ago, the Health Ministry had documented only eight cholera deaths, all in the densely populated capital Port-au-Prince.

Now, according to Marcou, the virus is spreading in remote areas of the country, which health services struggle to access and monitor.

“These places are harder to know what is going on there in real time due to the current crisis. It is clear the situation is getting worse and worse every day,” he said.

Until this year, the disease appeared to have been largely stamped out of the country, after a nationwide public health effort.

The last outbreak began in 2010, when cholera spread from a camp of United Nations peacekeepers into the population.

That outbreak ultimately reached 800,000 cases and claimed at least 10,000 lives. Though the UN has acknowledged its involvement in the outbreak, it has not accepted legal responsibility. Rights organizations have not stopped calling for financial compensation for victims.

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China’s security apparatus swings into action to smother Covid protests

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November 30, 2022
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China’s security apparatus swings into action to smother Covid protests

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CNN
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China’s vast security apparatus has moved swiftly to smother mass protests that swept the country, with police patrolling streets, checking cell phones and even calling some demonstrators to warn them against a repeat.

In major cities on Monday and Tuesday, police flooded the sites of protests that took place over the weekend, when thousands gathered to vent their anger over the country’s tough zero-Covid policy – some calling for greater democracy and freedom in an extraordinary show of dissent against Chinese leader Xi Jinping.

The heavy police presence has discouraged protesters from gathering since, while authorities in some cities have adopted surveillance tactics used in the far western region of Xinjiang to intimidate those who demonstrated at the weekend.

In what appears to be the first official response – albeit veiled – to the protests, China’s domestic security chief vowed at a meeting Tuesday to “effectively maintain overall social stability.”

Without mentioning the demonstrations, Chen Wenqing urged law enforcement officials to “resolutely strike hard against infiltration and sabotage activities by hostile forces, as well as illegal and criminal acts that disrupt social order,” the state-run news agency Xinhua reported.

The tough language may signal a heavy-handed crackdown ahead. While protests over local grievances do occur in China, the current wave of demonstrations is the most widespread since the Tiananmen Square pro-democracy movement of 1989. The political defiance is also unprecedented, with some protesters openly calling for Xi, the country’s most powerful and authoritarian leader in decades, to step down.

Some of the boldest protests took place in Shanghai, where crowds called for Xi’s removal two nights in a row. The sidewalks of Urumqi Road – the main protest site – have been completely blocked by tall barricades, making it virtually impossible for crowds to congregate.

Police cars patrol Shanghai's Urumqi Road, which has been completely blocked off by tall barricades after a weekend of protests.

A protester is arrested by police in Shanghai on Sunday night.

Ten minutes’ drive away, dozens of police officers patrolled the People’s Square – a large plaza at the heart of the city where some residents had planned to gather with white paper and candles on Monday evening. Police also waited inside a subway station there, closing off all but one exit, according to a protester at the scene.

CNN is not naming any of the protesters in this story to protect them from reprisals.

The protester said he saw police checking the cell phones of passersby, and asking them if they had installed virtual private networks (VPNs) that can be used to circumvent China’s internet firewall, or apps such as Twitter and Telegram, which though banned in the country have been used by protesters.

“There were also police dogs. The whole atmosphere was chilling,” the protester said.

Protesters later decided to move their planned demonstration to another location, but by the time they arrived, the security presence had already been stepped up there, the protester said.

“There were too many police and we had to cancel,” he said.

On Tuesday, a widely circulated video appears to show police officers checking passengers’ mobile phones on a Shanghai subway train.

Another Shanghai protester told CNN they were among “around 80 to 110” people detained by police on Saturday night, adding they were released 24 hours later.

CNN cannot independently verify the number of protesters detained and it is unclear how many people, if any, remain in custody.

The protester said the detainees had their phones confiscated on board a bus that took them to a police station, where officers collected their fingerprints and retina patterns.

According to the protester, police told those detained they had been used by “ill-intentioned people who want to start a color revolution,” pointing to nationwide protests breaking out on the same day as evidence of that.

The protester said police returned their phone and camera upon their release, but officers had deleted the photo album and removed the WeChat social media app.

In Beijing, police vehicles, many parked with their lights flashing, lined eerily quiet streets on Monday morning throughout parts of the capital, including near Liangmaqiao in the city’s central Chaoyang district, where a large crowd of protesters had gathered Sunday night.

The demonstration, which saw hundreds marching down the city’s Third Ring Road, ended peacefully in the early hours of Monday under the close watch of lines of police officers.

But some protesters have since received phone calls from the police inquiring about their participation.

One demonstrator said she received a phone call from a man who identified himself as a local police officer, asking her whether she was at the protest and what she saw there. She was also told that if she had any discontent with authorities, she should complain to the police, instead of taking part in “illegal activities” such as the protest.

“That night, the police mostly adopted a calm approach when dealing with us. But the Communist Party is very good at meting out punishment afterward,” the demonstrator told CNN.

She said she did not wear a face mask during the demonstration. “I don’t think Omicron is that scary,” she said. But her friends who wore masks to the protest also received calls from the police, she added.

Still, the protester remained defiant. “It is our legitimate right (to protest), because the constitution stipulates that we have freedom of speech and freedom of congregation,” she said.

Another protester, who has not heard from the police, told CNN that concern she could be the next to be called upon weighs heavily on her mind.

“I can only seek consolation by telling myself that there were so many of us who took part in the protest, they can’t put a thousand people in jail,” she said.

Meanwhile, some universities in Beijing have arranged transportation for students to return home early for winter break and take classes online, citing an effort to reduce Covid risks for students taking public transportation.

But the arrangement also conveniently discourages students from gathering, following demonstrations on a series of campuses over the weekend, including the prestigious Tsinghua University where hundreds of students shouted for “Democracy and rule of law! Freedom of expression!”

Given the long history of student-led movements in modern China, authorities are particularly concerned about political rallies on university campuses.

Beijing’s universities have been the source of demonstrations which kicked off the May Fourth Movement in 1919, to which the Chinese Communist Party traces its roots, as well as the Tiananmen Square protests in 1989, which were brutally crushed by the Chinese military.



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Chile: A rural town’s river vanished. Is Chile’s constitution to blame?

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November 29, 2022
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Chile: A rural town’s river vanished. Is Chile’s constitution to blame?

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CNN
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When she was a child, Marileu Avendaño used to go to the river with her friends to play. She was born and raised in Petorca, a rural town of more than 10,500 inhabitants in central Chile.

“I used to swim in the river,” the now 30-year-old agroecologist and president of Chile’s National Peasant Confederation tells CNN. “But my son won’t be able to.”

Where Marileu used to bathe, there are only rocks, dry shrubs, and dust – and no sign of water.

“The flow started diminishing as large-scale agricultural businesses expanded in this region, until it disappeared. And now we have serious issues; entire communities are left without adequate water supply”, she said.

In the past few years, Petorca has become a symbol of the fight over the right to water in Chile – which is unique to this Latin American country. Considered the epicenter of the country’s megadrought, Petorca has also always been at the center of Chile’s debate over the model of water management.

The dry riverbed in Petorca, Chile.

The country’s current constitution and the resulting water code – the legal framework regulating water rights and management – were both written under the military dictatorship and granted water rights for free and in perpetuity. They also allowed water rights bearers to trade and sell them, paving the way for private ownership.

While some market-oriented economists say it was a way to allocate water to its highest economic use and consider it helped boost Chile’s growth, large sectors of the society, including the left and center-left, grassroot environmental organizations and ordinary citizens, harshly criticize the privatization of water for protecting the interests of businesses over those of the most vulnerable and endangering the environment.

“In its original version, the water code was unique in the world because of its extreme liberalism. It was too permissive, Pablo Jaeger, a lawyer specialized in water law and the vice-president of the Chilean Water Law Association, which gathers experts in water management legislations told CNN.

He explains that the legal framework adopted in 1981 forced the government to grant water use rights to whomever requested them if water was available, and that there was no limit in the number of rights someone could ask for. Those rights were given permanently, including if their owners chose not to use them.

“That led to water speculation and prevented other people who were really interested in using them to do so”, Jaeger said. “Another problem with the 1981 code is that it didn´t establish any priority in terms of water use, not even for human consumption and sanitation.”

Over the past two decades, the landscape around Petorca has progressively changed. Where there used to be native vegetation and wildlife, the valleys and foothills turned into a patchwork of green fields and semi-arid stretches.

In the mid-nineties, attracted by the area´s favorable weather, avocado growers started big plantations. The business has been profitable. Chile is now Latin America’s third avocado exporter after Peru and Mexico, according to a 2022 report on the global avocado market by IQconsulting in collaboration with Chile’s Avocado Committee, an organization representing 55% of the industry. According to the same report, the Valparaiso region where Petorca is located is Chile’s main exporting region.

When water was abundant, the avocado farms’ consumption of water for their crops raised no pressing issue. But in the past 13 years, Chile has been facing a sustained drought — in part driven by climate change — that has increased the gap in the access to water.

Petorca’s mayor, Ignacio Villalobos, says that currently 70% of his community must resort to water tank trucks for water provision and that some of the districts have water only 2 to 5 hours a day. Residents in the most isolated areas receive 100 liters per person per day, the minimum to cover most basic needs, according to the World Health Organization.

The drought has also affected avocado farms, forcing them not to water some of their plantations. Still, experts and locals blame the growers for exacerbating the situation. “There is drought, but if these companies weren’t here, maybe our wells would have some water,” Maricela Estay, a 70-year-old woman who lives in Petorca´s rural area, told CNN.

Avocado plantations in Petorca, Chile.

The problem is bigger than the fruit itself, despite widespread reports that avocados suck up enormous amounts of water – 2,000 liters for every kilogram of the product, according to Greenpeace – a claim that José Gabriel Correa, president of the Avocado Committee, dismisses as a “huge myth.” He cites a 2013 study by Chile’s Ministry of Agriculture that estimated one kilogram of avocados required about 427 liters, on average – on par with the water consumption of other fruits, according to the same study.

At issue is instead Chile’s water rights system, which allows water access to be consolidated in the hands of just a few rights owners, and its historically poor watershed management.

Speaking in Petorca’s Office of Water Affairs, which he also runs – a small municipal office located in a precarious container at the end of an empty and dusty sun-stricken parking lot, with the Andes Mountains as background – geologist Vladimir Vicencio tells CNN that growers around Petorca have been able to both consolidate local water rights and wield the technical ability to pump more water than their poorer neighbors.

Official data shows that in Petorca there are 464 groundwater rights bearers, but that 30 of them own the lion’s share of water rights. All together they concentrate the rights over 58.8% of the total stream flow in the area.

“Most of those 30 biggest rights bearers are agricultural companies,” Vicencio said.

“With the current regulatory framework, agricultural companies have had the economic power to buy land and water rights, that at some point locals had to sell out of need; and they have the resources to improve their pumping infrastructure.”

“If they have 100-meter-deep wells up the river, it depletes the 10-meter-deep wells of communities living further down,” he adds.

The point is echoed by Mónica Pardo, sustainability manager at Knight Piésold, a global engineering and environmental consulting company, who says that a major failing of Chilean water law is that it does not consider the particularity of each water basin to grant use authorizations.

“The situation there is with avocado growers in Petorca happens with other industries in other regions as well. They use their water use authorizations rightfully, but the amount of water they are entitled to use is so high that the available flow isn’t enough to meet other people’s needs.”

“And governments have been historically inefficient in addressing that and making sure there is a more equitable distribution of the water,” she adds.

Correa, the Avocado Committee president, tells CNN he agrees that government has failed to address water scarcity. But he also argues that businesses should not be blamed for benefiting from superior water infrastructure. “The allegation that we are hoarding the water is not well founded. We are all victims of the drought; the big difference is that the private sector is more flexible and has been better able to invest in proper infrastructure than the public sector,” he told CNN.

For now, residents of Petorca have few options but to try reduce their everyday water use.

The local government constantly tries to educate the population on the best way to recycle and use water in times of scarcity, advising indivudals not to use tap water for gardens, swimming pools, to wash cars or clean their courtyards.

Maricela, who finds joy in a few fruit trees near her home, says she recycles household water to keep them alive. “I recycle the water of my laundry machine and keep it in a pond to be able to water my trees. It smells bad after 2 or 3 days, but I have no choice,” she told CNN.

Maricela Estay in Petorca, Chile.

As Chile attempts to rewrite a new constitution, water rights ownership has been at the center of political negotiations. Since Chileans massively rejected the first proposed constitutional draft last September, Congress has been discussing how to proceed. As a condition for the constitutional process to go on, the right-wing coalition Chile Vamos is demanding, among other things, for water use rights to remain untouched.

Conservatives and agricultural businesses worry that the new constitution could affect water rights ownership and damage business activities. Whether the right-wing requirement will be met remains to be seen, as negotiations are still underway.

Pablo Jaeger, however, says the solution to Chile’s water problems isn’t necessarily in a new constitution. He explains that the current water code is amendable and has already had many constructive changes since its inception.

Last April, after more than a decade of political negotiations, Congress adopted drastic reforms precisely to address inequality issues. The modification of the water code includes the implementation of a use-or-lose system.

It also limits the authorization of water use to 30 years and prioritizes human consumption and sanitation, environment sustainability, and food production.

Considered the epicenter of the country's mega drought -- one of the most felt effects of climate change -- Petorca has also always been at the center of Chile's debate over the model of water management.

Correa says the industry welcomes those modifications. However, others consider those changes are coming late and that the damage to the most vulnerable population and the environment is already done.

“The reforms are not retroactive, so they don’t apply for the water rights already granted, which are about 90% of those available in Chile. We have a model of free-market economic efficiency that led to the allocation of free and perpetual water rights in quantities that significantly exceed the water we have at disposition”, said Ulrike Broshek, sustainability deputy manager at Fundación Chile—a public-private organization promoting Chile’s sustainable development—and leader of “Escenarios Hídricos 2030”, a Latin American initiative working on measures and possible solutions to the water crisis.

Also worrisome, she added, is that according to a 2018 study published by the initiative she leads and funded by the philanthropic foundation Zomalab and the Inter-American Development Bank, different governments have granted almost seven times more water rights than those currently in use, which means the demand for water can still grow significantly.

Broschek says that the impact of the water crisis has been obvious: small farms are irreversibly disappearing, and younger generations are migrating to bigger cities looking for more opportunities.

Villalobos also says the government needs to strengthen its water management agency to turn the modified legislation framework into reality.

“The water code reform was necessary, but so far it is only a piece of paper. Today the country doesn’t have the technical capacity nor the staff required to put it into practice.”

Catalina Espinoza is 55 and lives in a small community of 8 families in the outskirts of Petorca. There, she runs a service called Rural Drinking Water (APR in Spanish). APRs are one of the government’s solutions to provide more isolated rural areas with running water. Authorities set up the infrastructure required to bring the water to the residents, but users must run the service themselves.

APRs have existed for decades and worked well, Catalina said, but now because of the drought, the one she runs only receives a limited amount of water, and if residents overuse it, they are fined. When it doesn’t rain and there is no water to pump anymore, they must apply for public funding to get the infrastructure required to reach deeper layers of the aquifer. The process is can be slow.

Catalina says it´s frustrating; she also complains about illegal water extraction.

“While we recycle the water from the sink and laundry machines, some people go to their fields, look for water, and when they find it, they dig wells without properly registering them with water authorities. They draw water they’re not allowed to use or more than the flow they’ve been authorized to pump”, she said.

Petorca protesters demonstrate against the water crisis that affects the town, as well as to commemorate International Women's Day, in Santiago, Chile, 08 March 2022.

Illegal water extraction in Petorca does happen. According to the Director-General of Water´s Office (DGA), the Valparaiso region – where Petorca is located – is one of the country’s areas with the highest number of ex officio inquiries for alleged violation of water use regulations. In Petorca, between January 2018 and last August, 377 inquiries were opened and 46 of them led to fines. Nationally, illegal water extraction represents 41.3% of all cases of water use regulations violations.

Experts agree that government control has been insufficient, pointing again at the lack of resources and officials to do the job.

“There is a problem with control, that is why it is important for the DGA to have proper tools to stop irregularities efficiently. Today there is technology for that, like drones for instance”, said Jaeger.

The current Environment Minister, Maisa Rojas, has publicly talked about this control issue and inaugurated a Fair water Transition Inter- ministerial Committee to address the water crisis.

Petorca's Office of Water Affairs.

The DGA told CNN this initiative aims at “optimizing water use, prioritizing human consumption and the rational use of this resource for productive activities”. To do so, the committee fosters a water management based on the participation of local actors using the same watershed.

Ramiro Toro, a local farmer and the president of the Water Users Association in the area of Chincolco, 7 miles away from downtown Petorca towards the Andes Mountains, is one of the many farmers stricken by water shortage. But he doesn’t blame avocado farms for that.

“We’ve been hit by drought, not by human intervention. The agricultural companies that settled here were also hit; they bring employment to our region, and they pay taxes that benefit the whole country”, he told CNN.

According to Chile´s Avocado Committee, the industry provides 40, 000 direct jobs and contributes to the country´s economy with 450 million dollars annually.

Toro, a 54-year-old tall, skinny man, wearing jeans, a casual collar shirt and sunglasses, is part of the 52% of Petorca’s local population living in a rural area. He has a small house on a road leading to wide extensions of land, many of which are now bare, empty fields. In his backyard, there is a small water reservoir pond, and a tiny empty swimming pool. A few avocado trees make the dry garden bushier.

Toro says farmer have seen their cattle die and have lost their crops because of water scarcity. According to Petorca’s mayor, between 2014 and 2021, the commune went from registering 9,000 heads of cattle to only 700.

Further up in the mountains, across the hardly noticeable riverbed, large stone cattle pens in the middle of unsown fields remain unoccupied.

This year, Toro says, there was some rain – 105 mm versus 30 mm during the 2021 winter season. That gave residents of the region some relief, a chance to refill their water ponds and grow some food. Unlike the year before, Toro was able to plant barley and wheat in 12 of the 50 acres he and his brother own.

Conservatives and agricultural businesses worry that the new constitution could affect water rights ownership and damage business activities.

He explains that during the most difficult years, the association he presides over was essential. Many of its 300 members managed to subsist growing their own food, thanks to the water it provided. The association has water use rights over a well and distributes the water proportionally to the number of shares each member owns.

“Our greatest fear was that with the new constitution our association would lose its water use rights, that the government would snatch them from us, although they are our patrimony”, said Toro, who rejected the proposal in the September constitutional referendum.

Sustainability experts are hopeful that the existing water code reforms will progressively help level the field and prevent further environmental degradation. In addition to reverting some of the most controversial 1981 policies, those modifications give the State more power to stop illegal water use and include measures to manage watersheds more comprehensively.

But the need for improvement is urgent, and some are tired of waiting.

“We haven’t seen any change. Inequity persists, there is so much precarity and farmers are falling into extreme poverty”, said Marileu Avendaño.

Villalobos explains that to subsist, some of them started working looking for water as a paid service. But they often do it without necessary safety measures.

“A few years ago, we lost a 17-year-old boy who worked with his father and was hit by a rock while digging a well. Another man died falling into one while looking for groundwater,” he said.

“This is what we must live with, while most of the country and the world don’t know what it means not to have water. We feel abandoned.”

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