Saturday, June 28, 2014

Nigerian intelligence agency: We warned malls

ABUJA, Nigeria (AP) — Nigeria's intelligence agency said it has been warning shopping complexes in Abuja for two weeks that Islamic extremists might attack them in the capital, where a blast at a mall killed 22 people this week

The increased security may have prevented even more carnage, as witnesses said a security guard stopped a car bomber from entering the mall moments before the massive explosion on Wednesday.

Survivor Donald Chikason told ThisDay newspaper that a security guard argued with the driver of a car who wanted to enter Emab Plaza through the exit gate. When the guard refused, the man bent down and moments later the car exploded, Friday's edition of the newspaper quoted him as saying.

"The man started arguing, behaving as if he was drunk," it quoted him as saying.
Chikason, who works at a bank in the mall, was knocked out by the blast and only regained consciousness in the hospital.

The explosion was heard miles (kilometers) away. It set 17 vehicles ablaze and shattered windows throughout the four-story complex.

Body parts lay around the exit gate, other witnesses told The Associated Press. Dozens of wounded survivors were recovering in the hospitals Friday, most suffering burn wounds like Chikason, but at least one victim's leg was amputated, doctors said.

Nigerian intelligence received information that Boko Haram extremists were planning such an attack, said spokeswoman Marilyn Ogar of the Department of State Security.

"About two weeks ago we heard information that they were planning an attack at a busy shopping mall or market ... and so we had to go from one shopping complex to another trying to tell people to be more aware," she told The Associated Press.

Emab Plaza is the biggest and busiest in Abuja, the nation's capital in central Nigeria. The explosion occurred around rush hour as many residents were hurrying to view Nigeria's Super Eagles match against Argentina at the World Cup in Brazil. It was unclear if the bomb was timed to coincide with that, although Boko Haram has bombed several football viewing venues this year, prompting two northeastern states to ban public events to watch the football spectacular.

The state security department did not publish the intelligence about the threat to shopping malls, apparently to avoid a panic. Last week the government warned it had information that Boko Haram planned to hijack petrol tankers in the capital and booby trap them with explosives.

Also Friday, police said they defused a massive car bomb packed with 13 explosive devices outside the main mosque in Kano, Nigeria's second city, in the north of the country. "We detonated a dangerous device which could have pulled down buildings," police commissioner Aderenle Shinaba told reporters. "What happened in the Abuja explosion would have been child's play if these discovered explosives had exploded at the mosque."
He said it was timed to explode as people gathered for prayers on Friday, the main Muslim holy day.

Two separate bombs in Abuja in April killed about 120 people and wounded more than 200 at a busy bus station.

President Goodluck Jonathan visited the scene of the latest blast and victims in the hospital on Friday, after returning home hastily Thursday night and cutting short his participation at an African Union summit in Equatorial Guinea.

Speaking to reporters at the main hospital, he sympathized with victims and their families and called the 5-year-old Islamic uprising "one of the darkest phases in the history of our nation." Still he said he was confident "we shall surely pass through this" and promised the perpetrators would be brought to book.

Jonathan and his government are making efforts to improve his image following international condemnation of his slow and ineffective response to the April mass abductions of more than 200 schoolgirls who still are held captive by Boko Haram extremists. Boko Haram also is blamed for the kidnappings of another 90 people this week.

Jonathan sent an opinion piece published Thursday in the Washington Post newspaper with the headline: "Nothing is more important than bringing home Nigeria's missing girls."

Nigeria's leader said his silence on the subject was needed to avoid compromising details of the investigation but unfortunately "is being misused by partisan critics to suggest inaction or even weakness ... On my orders, our forces have aggressively sought these killers in the forests of northern Borno state, where they are based," Jonathan wrote, indicating a belief the girls still are in the country. There have been reports of sightings of groups of girls assumed to be those kidnapped in April in neighboring countries.

Jonathan, a Christian, wrote that Boko Haram "seeks to overwhelm the country and impose its ideology on all Nigerians. My government is determined to make that impossible. We will not succumb to the will of terrorists."

He came home to a capital is in mourning, with speedy burials for Muslims among the victims. They included artist Abba Kura. His friend, Muhammad Khalifa Garba wept at his funeral Thursday, where mourners carried his works. He said Kura told him earlier this week that he no longer wanted to paint on canvas and had started a new work, a landscape on paper.

A relative of another victim, Mohammed Maina Bissala, railed against Boko Haram's indiscriminate tactics: "Allah says you should not take the life of a single person, so why should you claim that you are Boko Haram and you are killing everybody, both Muslims and Christians, everybody. What have they done? They have not done anything, these are innocent souls," he told The Associated Press.

Boko Haram's attacks have been concentrated in its stronghold in the northeast of the country but it has spread its attacks to the capital this year and increased the tempo and deadliness of attacks concentrated around bombings in cities and a scorched-earth policy in rural villages in the northeast.

YouTube Embraces Crowdfunding


Fans can now contribute money directly to their favorite channels on YouTube, bringing crowdfunding to the world's largest video site. YouTube CEO Susan Wojcicki unveiled the feature, one of several new products, during her keynote presentation at VidCon, an annual convention for the online video industry.
Many YouTube channels and stars already use crowdfunding sites such as Kickstarter and Indiegogo to raise funds. Freddie Wong has raised hundreds of thousands of dollars for every season of “Video Game High School” while Rooster Teeth has raised more than $1.7 million thus far in a campaign that has ten days left.

Also read: The Key to Rooster Teeth's Million-Dollar Crowdfunding Campaign: ‘The Economy of First’
YouTube is not trying to steal business from Kickstarter or Indiegogo, the two largest crowdfunding platforms. It released a new interactive card that will link to a campaign on other sites. YouTube's new feature also limits fans’ contributions to $500.
Yet it wants to enable creators big and small to get some help from their fans.
“Any viewer can show any creator their love by tipping them $1, $5, even as much as $500,” Wojcicki said.

Also read: Wil Wheaton's ‘Tabletop’ Sets Crowdfunding Record With $1.4 Million Haul
The fan-funding initiative was one of several tweaks to YouTube unveiled Thursday. People can now credit everyone they worked with on a video, and find free music from an audio library loaded with sound effects. Smaller businesses have already popped up to offer similar services to creators, but YouTube decided to offer the abilities on its own.
Wojcicki cited three primary objectives for YouTube in the year ahead: engaging a global audience, generating more revenue and strengthening music as YouTube moves towards offering a subscription service.

Also read: NeonGrid Is Building IMDb for YouTube Stars
These goals explain a few new initiatives:
>> Fans can now subtitle videos in other languages, a nod to the increasingly global audience on YouTube. YouTube's audience is bigger outside the United States than within it.
“Even though 60 percent of your views on average come from outside your home country, not all of YouTube's users can understand your videos,” Wojcicki said.

Also read: YouTube Feeding Frenzy Continues: Food Network Tastemade Raises $25 Million
>> YouTube's campaign to promote its stars with advertisements in major cities will continue by supporting Vice. Wojcicki said the campaign doubled awareness of Michelle Phan, tripled Bethany Mota and quadrupled awareness of Rosanna Pansino.
“It will help advertisers get even more comfortable with YouTube, meaning more ad dollars spent on YouTube, giving all of you even more room to grow your fan bases and businesses,” Wojcicki said.

>> YouTube and SiriusXM are collaborating on a new music countdown show called YouTube 15.

Woman dies in Australia using cheap USB-style charger

    A vendor looks out from his electronics stall in a market in Shanghai on August 15, 2013. Unofficial electronic chargers often do not meet essential safety requirements and are sometimes made of inferior plastics and other insulation materials

Australian authorities issued a warning about cheap, non-compliant USB-style chargers Friday after a young woman died from apparent electrocution while using a laptop and possibly a smart phone.

The 28-year-old was found wearing headphones and with her computer in her lap with burns on her chest and ears at a home in Gosford, north of Sydney, in April.

Police are still investigating the circumstances of the death but the Department of Fair Trading, which has assisted with the case, suggested a sub-standard mobile phone charger could be to blame.

The woman, whom reports said was from the Philippines but had recently become an Australian citizen, had headphones plugged into her laptop, which was connected to a power socket to charge.

"The phone was also plugged into a USB-style charger. That charger had failed," Lynelle Collins from the New South Wales Department of Fair Trading told AFP.

"Somehow power from that charger has connected to her body. Whether she had it (the phone) to her ear or was holding it in her hand, we don't know."

Collins said ideally people should avoid using their mobile phones while the devices were charging, but in any case they should avoid non-approved chargers.

"We are trying to alert people to the concern that sometimes when you buy really cheap chargers, they aren't compliant with... (safety) standards," she said.

Fair Trading said it had removed a number of unapproved and non-compliant USB-style chargers, travel adaptors and power boards from sale in Sydney after the death.
They said the devices did not meet essential safety requirements and were often made of inferior plastics and other insulation materials.

"These devices pose a serious risk of electrocution or fire," Fair Trading commissioner Rod Stowe said in a statement.

Maximum penalties for selling devices that fail Australian standards are Aus$87,500 (US$82,500) and/or two years imprisonment for an individual and a Aus$875,000 fine for a corporation.

The woman's death is the only known fatality in Australia potentially linked with the chargers, but a report from China in 2013 suggested a woman was electrocuted while making a call on a phone that was charging.

Saudi to mark Ramadan from Sunday

Ramadan, the Muslim holy month of fasting, will begin on Sunday in Saudi Arabia, the state-run Al-Ekhbariya television channel reported on Friday.

Citing the authorities, it said that because the crescent moon was unable to be seen with the naked eye on Friday, Ramadan would begin on Sunday.

According to tradition, it is the sighting with the naked eye of the new moon that signals the start of Ramadan.

Other Gulf monarchies, including Bahrain, Kuwait, Qatar and the United Arab Emirates also said Ramadan will start in their countries on Sunday.

Yemen's religious authorities said in a statement that fasting would begin on Saturday.
During this month, Muslim believers abstain from eating, drinking, smoking and having sex from dawn until sunset.

Ramadan is sacred to Muslims because it is during that month that tradition says the Koran was revealed to the Prophet Mohammed.

The fast is one of the five main religious obligations under Islam.

Saudi king, in Ramadan message, vows to crush terrorists

DUBAI (Reuters) - Saudi King Abdullah, in a Ramadan message on Saturday, vowed to crush Islamist militants threatening the kingdom, the state news agency reported, saying the world's top oil exporter would not tolerate "a band of terrorists".

The remarks came two days after the monarch ordered all necessary measures to protect the country against potential "terrorist threats" resulting from turmoil in neighboring Iraq, where Sunni Islamist militants have captured some cities from the government of Shi'ite Prime Minister Nouri al-Maliki.

"We will not let a band of terrorists who have taken religion as a disguise behind which they hide private interests to terrorize the protected Muslims, to touch our homeland or any of its sons or its protected residents," King Abdullah said in a message at the start of the Muslim holy month of Ramadan.

Saudi Arabia crushed al Qaeda after the Islamist militant group began a campaign of bombings and attacks on vital installations and expatriate compounds in the kingdom.
The U.S.-allied kingdom has been rattled by a lightning advance through Iraq by Sunni militants spearheaded by the Islamic State in Iraq and the Levant (ISIL) - aided by other Sunni Muslim militants, tribal leaders and remnants of Saddam Hussein's Baath Party - which seized swathes of the country this month.

Saudi Arabia shares an 800-km (500-mile) border with Iraq.
The birthplace of Islam, it sees itself as a champion of pure Sunni Muslim values and regards Shi'ite Iran as its main regional foe.

Friday, June 13, 2014

How is This Possible? Baby Born 24 Days After His Twin Brother

                                                                           
A screen shot from ABC featuring the babies
 

 
. (Newser) - When a baby is born at 24 weeks, he or she has about a 50% chance of survival, Boston.com notes-but survive little Alexandre Antunes did.
"We were praying to hear his cry, and we did," mom Lindalva DaSilva tells WCVB. What made his situation even more incredible, however, was that he had a twin brother still in the womb. Ronaldo didn't enter the world until 24 days after Alexandre, but both are healthy and growing three months later, ABC News reports. DaSilva, 35, had hurried to the hospital when her water broke on Feb. 27, almost four months before her due date, the Boston Globe reports. "I knew I could lose the babies," she recalls.
After Alexandre was born at one pound, 10 ounces, her contractions faded-even though Ronaldo, along with Alexandre's umbilical cord and placenta, remained inside. Alexandre was placed in an incubator while Ronaldo continued to grow.
The mother is the best place for a preterm baby to develop unless there is evidence of infection," says an expert, but delayed twin deliveries are extremely rare and can only work with fraternal twins who don't share a placenta. At one point, Alexandre's umbilical cord "came out," says DaSilva, "but they just cleaned it and put it back inside." Finally, Ronaldo was born at three pounds, three ounces. "One twin was born in winter, and one was born in spring," DaSilva says. Both are now more than six pounds, and DaSilva and her husband, Ronaldo Antunes, are poised to take them home right around their original June 18 due date. (Also this month, an extremely rare set of "mono mono" twins went home.)
r Alexandre, but both are healthy and growing three months later, ABC News reports. DaSilva, 35, had hurried to the hospital when her water broke on Feb. 27, almost four months before her due date, the Boston Globe reports. "I knew I could lose the babies," she recalls.
After Alexandre was born at one pound, 10 ounces, her contractions faded-even though Ronaldo, along with Alexandre's umbilical cord and placenta, remained inside. Alexandre was placed in an incubator while Ronaldo continued to grow.
The mother is the best place for a preterm baby to develop unless there is evidence of infection," says an expert, but delayed twin deliveries are extremely rare and can only work with fraternal twins who don't share a placenta. At one point, Alexandre's umbilical cord "came out," says DaSilva, "but they just cleaned it and put it back inside." Finally, Ronaldo was born at three pounds, three ounces. "One twin was born in winter, and one was born in spring," DaSilva says. Both are now more than six pounds, and DaSilva and her husband, Ronaldo Antunes, are poised to take them home right around their original June 18 due date. (Also this month, an extremely rare set of "mono mono" twins went home.)
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Friend pays final respects to Emirates Road crash victim

A distraught expat has paid tribute to a friend and co-worker who died in last month’s Emirates Road horror smash.


Friend pays final respects to Emirates Road crash victim
 

Friend pays final respects to Emirates Road crash victim
Speaking from Bangladesh, where he accompanied the body of Baddonat Hasan, grieving 

Shadoddin K said that he flew back to be with his friend for a final goodbye.
“It’s very sad, he was a very good man,” Shadoddin said. “Many people came to the funeral for him. He had been in the UAE for eight years and had always sent money home to his family.”
Thirteen labourers were killed, and a number of others were injured, after a bus ploughed into the back of a stationary lorry on Saturday, May 11. The bus driver, police believe, had fallen asleep at the wheel.
Labour supply company Holland Technical Services paid for Shadoddin and several other employees to accompany the bodies, as it is required by law that bodies are escorted from the UAE.
He said that Hasan’s 12-year-old son is mute and that his widow has no income with which to support her family. He added that the family has so far received Dhs1,000 in compensation from Holland Tech, but added they would need more to get by.
The company’s lawyer told 7DAYS that the firm is awaiting the results of the police investigation into the accident before deciding on any further compensation. The funerals of the 12 other victims took place in India and other parts of Bangladesh. Most of the firm’s funeral goer employees live at the company’s accommodation in Umm Al Quwain.
The bus was on the way to Jebel Ali when it crashed.

Shiite cleric urges Iraqis to defend country


BAGHDAD (AP) — Iraq's Shiite clerical leadership Friday called on all Iraqis to defend their country from Sunni militants who have seized large swaths of territory, and a U.N. official expressed "extreme alarm" at reprisal killings in the offensive, citing reports of hundreds of dead and wounded.
U.S. President Barack Obama said he is weighing options for countering the insurgency, but warned Iraqi leaders that he would not take military action unless they moved to address the country's political divisions.
Fighters from the al-Qaida-inspired Islamic State of Iraq and the Levant made fresh gains, driving government forces at least temporarily from two towns in an ethnically mixed province northeast of Baghdad. The assault threatens to embroil Iraq more deeply in a wider regional conflict feeding off the chaos caused by the civil war in neighboring Syria.
The fast-moving rebellion, which also draws support from former Saddam Hussein-era figures and other disaffected Sunnis, has emerged as the biggest threat to Iraq's stability since the U.S. withdrawal in 2011. It has pushed the nation closer to a precipice that could partition it into Sunni, Shiite and Kurdish zones.
Prime Minister Nouri al-Maliki, whose Shiite-led government is struggling to form a coherent response to the crisis, traveled to the city of Samarra to meet with military commanders late Friday, according to state TV.
Militants earlier in the week overran military bases and several communities including the second-largest city of Mosul and Saddam's hometown of Tikrit. Samarra, the site of a prominent Shiite shrine 60 miles (95 kilometers) north of Baghdad, sits between Tikrit and the capital.
A representative for Grand Ayatollah Ali al-Sistani, the most revered Shiite spiritual leader in Iraq, told worshippers at Friday prayers that it was their civic duty to confront the threat.
"Citizens who can carry weapons and fight the terrorists in defense of their country, its people and its holy sites should volunteer and join the security forces," said Sheik Abdul-Mahdi al-Karbalaie, whose comments are thought to reflect al-Sistani's thinking.
He warned that Iraq faced "great danger," and that fighting the militants "is everybody's responsibility, and is not limited to one specific sect or group."
In Geneva, U.N. human rights chief Navi Pillay warned of "murder of all kinds" and other war crimes in Iraq, and said the number killed in recent days may run into the hundreds, while the wounded could approach 1,000.
Pillay said her office has received reports that militants rounded up and killed Iraqi army soldiers as well as 17 civilians in a single street in Mosul.
Her office heard of "summary executions and extrajudicial killings" as ISIL militants overran Iraqi cities and towns this week, the statement said.
"I am extremely concerned about the acute vulnerability of civilians caught in the cross-fire, or targeted in direct attacks by armed groups, or trapped in areas under the control of ISIL and their allies," Pillay said. "And I am especially concerned about the risk to vulnerable groups, minorities, women and children."
Obama did not specify what options he was considering, but he ruled out sending American troops back into combat in Iraq.
"We're not going to allow ourselves to be dragged back into a situation in which, while we're there we're keeping a lid on things, and after enormous sacrifices by us, after we're not there, people start acting in ways that are not conducive to the long-term stability and prosperity of the country," Obama said on the South Lawn of the White House.
Administration officials said Obama is weighing airstrikes using drones or manned aircraft. Other short-term options include an increase in surveillance and intelligence-gathering. The U.S. also is likely to increase aid to Iraq, including funding, training and both lethal and non-lethal equipment.
Al-Maliki and other Iraqi leaders have pleaded with Washington for more than a year for additional help to combat the growing insurgency.
Neighboring Shiite powerhouse Iran signaled its willingness to confront the growing threat from the militant blitz.
Former members of Tehran's powerful Revolutionary Guard have announced their readiness to fight in Iraq against the Islamic State, the official IRNA news agency reported. Iranian state TV quoted President Hassan Rouhani as saying his country will do all it can to battle terrorism next door.
"The Islamic Republic of Iran will apply all its efforts on the international and regional levels to confront terrorism," the report said Rouhani told al-Maliki by phone.
Iranian officials denied their forces were actively operating in Iraq, however.
Mansour Haghighatpour, who sits on an influential Iranian parliamentary committee on national security and foreign policy, told The Associated Press that Baghdad is capable of fighting the militants, but Tehran would consider other options if asked.
Iran has built close political and economic ties with postwar Iraq, and many influential Iraqi Shiites have spent time in the Islamic Republic. Iran this week halted flights to Baghdad because of security concerns and said it was intensifying security on its borders.
Police said Sunni militants driving machine gun-mounted pickups entered the two newly conquered Iraqi towns in Diyala province late Thursday — Jalula, 125 kilometers (80 miles) northeast of Baghdad, and Sadiyah, 95 kilometers (60 miles) north of the capital. Iraqi soldiers abandoned their posts there without any resistance, they said.
Jalula residents said the gunmen issued an ultimatum to the soldiers not to resist and give up their weapons in exchange for safe passage. After seizing the town, the gunmen announced on loudspeakers that they have come to rescue residents from injustice and that none would be hurt.
The gunmen later disappeared from Jalula, only to be replaced with the Kurdish security forces known as peshmerga. They raised the Kurdish flag over government buildings and transferred abandoned Iraqi military equipment back to the Kurds' self-ruled northern region, according to two police officials. The officials spoke on condition of anonymity because they were not authorized to talk to journalists, and the residents declined to give their names out of fears for their safety.
The Islamic State has vowed to march on Baghdad, but the capital would be a far more difficult target with its large Shiite population. The militants would face far stronger resistance from government forces and Shiite militias.
So far, they have stuck to the Sunni heartland and former Sunni insurgent strongholds where people are alienated by al-Maliki's government over allegations of discrimination and mistreatment.
Iraq's former Sunni vice president, Tariq al-Hashemi, told the AP in Istanbul that while the Islamic State was one player in the uprising, they are not the driving force.
"They are not involved in the decision-making," he said, adding that the Sunni tribes in Mosul and Anbar are "behind this Iraqi spring."
Baghdad considers al-Hashemi a fugitive after he was found guilty in absentia in terrorism-related cases — charges he dismisses as politically motivated.
Shiite cleric Muqtada al-Sadr and the Asaib Ahl al-Haq Shiite militia have vowed to defend Shiite holy sites, raising the specter of street clashes and sectarian killings.
Still, authorities have tightened security around the capital and residents stocked up on supplies.
Hundreds of young men volunteered for military service at a recruiting center Thursday, and more were being urged to join by cars playing Shiite religious songs that roamed Shiite neighborhoods Friday after the cleric's call.
The Islamic militants in Mosul declared they would impose Shariah law and trumpeted their success in a parade of seized armored vehicles that was captured on online video.
A fighter with a loudspeaker urged the people to join the militants "to liberate Baghdad and Jerusalem." The Islamic State's black banners adorned many of the captured vehicles. Some in the crowd shouted "God is with you" to the fighters.
The video appeared authentic and consistent with AP reporting of the events depicted.
The U.N. refugee agency reported that local authorities say 300,000 people fleeing from Mosul have sought safety in the Erbil and Duhok governorates in the Kurdistan region. UNHCR monitoring teams report many arrived with little more than what they were wearing, although some are staying with relatives and in hotels, the agency said.
Kurdish security forces filled the power vacuum caused by the retreating Iraqi forces, taking control of the ethnically mixed oil hub of Kirkuk in northern Iraq.
The advances by the Sunni militants are a heavy defeat for al-Maliki. His Shiite-dominated political bloc came first in April parliamentary elections — the first since the U.S. military withdrawal — but failed to get a majority, forcing him to try to build a governing coalition.
The U.N. envoy in Iraq, Nickolay Mladenov, urged the Federal Court to certify the election results before the current parliament's mandate expires Saturday.
"There is a need to guarantee the continuity of the parliament, representing all Iraqis, is in place and will continue to address urgent decisions of national importance," Mladenov said.
Iraq's government began blocking access to websites like Facebook and Twitter, according to Renesys, a New Hampshire-based Internet analysis firm. The outages, reported Thursday and Friday, appeared to coincide with government efforts to disrupt the militants' offensive and mirrored other past efforts by Middle East countries to block Internet access.
Internet access routed through Kurdistan into neighboring Turkey appeared to continue functioning, said Jim Cowie, the head of research and development at Renesys. Iraq also accesses the Internet through providers in Jordan and via submarine cables.
"There can always be battle damage but in this particular case it's government directed," Cowie told the AP.
___
Schreck reported from Dubai, United Arab Emirates. Associated Press writers Julie Pace in Washington, John Heilprin in Geneva, Jon Gambrell in Cairo, Edith Lederer at the United Nations, Qassim Abdul-Zahra in Baghdad, Desmond Butler in Istanbul and Nasser Karimi in Tehran, Iran, contributed to this report.

Saturday, June 7, 2014

Egypt turns to Western economic advisers, signalling possible reforms under Sisi: sources

By Maggie Fick, Stephen Kalin and Sophie Sassard
CAIRO/LONDON (Reuters) - Western advisers are drawing up plans for reshaping the Egyptian economy, sources said, with the apparent blessing of president-elect Abdel Fattah al-Sisi who so far has spoken only vaguely in public about reviving the state's finances.
The driving force behind the consulting project is the United Arab Emirates, which along with Saudi Arabia and Kuwait has showered Egypt with billions of dollars in aid since Sisi removed the Muslim Brotherhood from power last year, sources familiar with the exercise and businessmen told Reuters.
If Egypt were to accept reforms proposed by U.S. consultancy Strategy& and international investment bank Lazard, this could be used as a basis for reopening talks on a loan deal with the International Monetary Fund which ousted Islamist President Mohamed Mursi failed to seal, unwilling to impose unpopular reforms.
Gulf allies opposed to the Muslim Brotherhood have extended a lifeline exceeding $12 billion in cash and petroleum products to help Egypt stave off economic collapse.
The hiring of Lazard and Strategy& - formerly called Booz & Company - suggests the Gulf states want to ensure aid is spent efficiently in a country where past leaders with military backgrounds have often mismanaged the economy.
"UAE are involved in the process, as they are among the country’s lenders. Lending money is not enough in itself. You also need to make sure the government has the means to identify what needs to change and execute it," said one of the sources familiar with the situation.
An IMF deal could help to inspire confidence among foreign investors who have been unnerved by three years of turmoil and a range of other problems ranging from costly energy subsidies to a lack of transparency in economic management.
It's unclear if Sisi, who stood down as military chief in March before winning a presidential election last month, has met the Western consulting companies. But advisers to the man who has been de facto leader of Egypt since Mursi's fall have almost certainly been closely involved in the project, which has been underway for several months.
SISI'S INTENTIONS
The discussions are the strongest indication that Sisi may restructure an economy suffering from corruption, red tape, high unemployment and a widening budget deficit aggravated by the fuel subsidies that cost nearly $19 billion a year.
Officials forecast economic growth at just 3.2 percent in the fiscal year that begins July 1, well below levels needed to create enough jobs for a rapidly growing population and ease widespread poverty.
The consultants have assigned sector teams to look at issues such as privatisations and other reforms, said the source.
The toughest problem will be the energy subsidies. Raising fuel and electricity prices could provoke unrest in a country where street protests have helped to depose two leaders in three years.
"This should be changed but that's a political decision. Lazard and Booz can only make recommendations but in the end the government will decide," said the source.
Interim president Adly Mansour suggested in April that Egypt was open to resuming privatisation of state firms, a policy pursued by President Hosni Mubarak before his fall in 2011. [ID:nL6N0NM5AH]
Timing of the announcement of any reforms was "a political decision," the source said, adding that it was not clear whether the government would announce anything before parliamentary elections expected later this year.
A spokeswoman for Strategy&, which was acquired by Price Waterhouse Coopers in April, said she could not comment. A spokesman for Lazard also declined to comment.
However, UAE minister of state Sultan Ahmed al-Jaber, who handles aid to Cairo, said his country is "providing Egypt with technical support for the development of an economic recovery plan".
In a statement emailed to Reuters, he said the assistance the UAE had provided included work by "world-renowned consultancies", without giving further details.
The Gulf allies have indicated they will continue to support the new government, with Saudi Arabia hosting a donor conference shortly after Sisi takes office on Sunday. [ID:nL6N0OK47U]
GULF EFFICIENCY
During his election campaign, Sisi did not spell out how he would steer Egypt's economy. [ID:nL6N0O73TX]
But businessmen who have met Sisi say his calls for "hard work" were a signal he was willing to consider the kind of austerity measures that past leaders have avoided.
The project began well before Sisi's election. "Booz has been working for the past seven months on a reform plan in collaboration with the Egyptian military," said Tarek Zakaria Tawfik, deputy chairman of the Federation of Egyptian Industries (FEI), who said he talked with the consultants this year and met Sisi in May.
Although Sisi won strong public support for removing Mursi, failure to revitalise the economy could quickly strip away his popularity and bring Egyptians back onto the streets.
The military, which has a budget shielded from public oversight, has accrued a business empire ranging from bottled water to petrol stations. It is regarded as effective in implementing large-scale projects such as those funded by the UAE since Mursi's overthrow. [ID:nL4N0ML3LT]
An army spokesman was not immediately available for comment.
One businessman who met Sisi twice before the election said the incoming leader knew about the consultants' activities. "(Sisi) will be the one to announce the plan. He's well aware of (the consultants)," said Tamer Abu Bakr, chairman of Mashreq Petroleum, who discussed energy policy with Sisi.
No one on Sisi's staff was immediately available for comment.
Other prominent businessmen consulted about the plan told Reuters that the international advisers were working with officials from Egypt's central bank and ministries of finance and trade, industry and investment.
One businessman said he met the consultants this year at the request of a government official, discussing changes he hoped to see in licensing regulations.
A spokeswoman at the central bank declined to comment. The finance ministry and the ministry of trade, industry and investment could not be reached immediately.
By Maggie Fick, Stephen Kalin and Sophie Sassard
CAIRO/LONDON (Reuters) - Western advisers are drawing up plans for reshaping the Egyptian economy, sources said, with the apparent blessing of president-elect Abdel Fattah al-Sisi who so far has spoken only vaguely in public about reviving the state's finances.
The driving force behind the consulting project is the United Arab Emirates, which along with Saudi Arabia and Kuwait has showered Egypt with billions of dollars in aid since Sisi removed the Muslim Brotherhood from power last year, sources familiar with the exercise and businessmen told Reuters.
If Egypt were to accept reforms proposed by U.S. consultancy Strategy& and international investment bank Lazard, this could be used as a basis for reopening talks on a loan deal with the International Monetary Fund which ousted Islamist President Mohamed Mursi failed to seal, unwilling to impose unpopular reforms.
Gulf allies opposed to the Muslim Brotherhood have extended a lifeline exceeding $12 billion in cash and petroleum products to help Egypt stave off economic collapse.
The hiring of Lazard and Strategy& - formerly called Booz & Company - suggests the Gulf states want to ensure aid is spent efficiently in a country where past leaders with military backgrounds have often mismanaged the economy.
"UAE are involved in the process, as they are among the country’s lenders. Lending money is not enough in itself. You also need to make sure the government has the means to identify what needs to change and execute it," said one of the sources familiar with the situation.
An IMF deal could help to inspire confidence among foreign investors who have been unnerved by three years of turmoil and a range of other problems ranging from costly energy subsidies to a lack of transparency in economic management.
It's unclear if Sisi, who stood down as military chief in March before winning a presidential election last month, has met the Western consulting companies. But advisers to the man who has been de facto leader of Egypt since Mursi's fall have almost certainly been closely involved in the project, which has been underway for several months.
SISI'S INTENTIONS
The discussions are the strongest indication that Sisi may restructure an economy suffering from corruption, red tape, high unemployment and a widening budget deficit aggravated by the fuel subsidies that cost nearly $19 billion a year.
Officials forecast economic growth at just 3.2 percent in the fiscal year that begins July 1, well below levels needed to create enough jobs for a rapidly growing population and ease widespread poverty.
The consultants have assigned sector teams to look at issues such as privatisations and other reforms, said the source.
The toughest problem will be the energy subsidies. Raising fuel and electricity prices could provoke unrest in a country where street protests have helped to depose two leaders in three years.
"This should be changed but that's a political decision. Lazard and Booz can only make recommendations but in the end the government will decide," said the source.
Interim president Adly Mansour suggested in April that Egypt was open to resuming privatisation of state firms, a policy pursued by President Hosni Mubarak before his fall in 2011. [ID:nL6N0NM5AH]
Timing of the announcement of any reforms was "a political decision," the source said, adding that it was not clear whether the government would announce anything before parliamentary elections expected later this year.
A spokeswoman for Strategy&, which was acquired by Price Waterhouse Coopers in April, said she could not comment. A spokesman for Lazard also declined to comment.
However, UAE minister of state Sultan Ahmed al-Jaber, who handles aid to Cairo, said his country is "providing Egypt with technical support for the development of an economic recovery plan".
In a statement emailed to Reuters, he said the assistance the UAE had provided included work by "world-renowned consultancies", without giving further details.
The Gulf allies have indicated they will continue to support the new government, with Saudi Arabia hosting a donor conference shortly after Sisi takes office on Sunday. [ID:nL6N0OK47U]
GULF EFFICIENCY
During his election campaign, Sisi did not spell out how he would steer Egypt's economy. [ID:nL6N0O73TX]
But businessmen who have met Sisi say his calls for "hard work" were a signal he was willing to consider the kind of austerity measures that past leaders have avoided.
The project began well before Sisi's election. "Booz has been working for the past seven months on a reform plan in collaboration with the Egyptian military," said Tarek Zakaria Tawfik, deputy chairman of the Federation of Egyptian Industries (FEI), who said he talked with the consultants this year and met Sisi in May.
Although Sisi won strong public support for removing Mursi, failure to revitalise the economy could quickly strip away his popularity and bring Egyptians back onto the streets.
The military, which has a budget shielded from public oversight, has accrued a business empire ranging from bottled water to petrol stations. It is regarded as effective in implementing large-scale projects such as those funded by the UAE since Mursi's overthrow. [ID:nL4N0ML3LT]
An army spokesman was not immediately available for comment.
One businessman who met Sisi twice before the election said the incoming leader knew about the consultants' activities. "(Sisi) will be the one to announce the plan. He's well aware of (the consultants)," said Tamer Abu Bakr, chairman of Mashreq Petroleum, who discussed energy policy with Sisi.
No one on Sisi's staff was immediately available for comment.
Other prominent businessmen consulted about the plan told Reuters that the international advisers were working with officials from Egypt's central bank and ministries of finance and trade, industry and investment.
One businessman said he met the consultants this year at the request of a government official, discussing changes he hoped to see in licensing regulations.
A spokeswoman at the central bank declined to comment. The finance ministry and the ministry of trade, industry and investment could not be reached immediately.
WELCOME REFORMS
Businessmen are encouraged by hints of economic reform that could help Egypt to secure an IMF loan, unlocking billions of dollars more in foreign aid and investment which dropped off after the 2011 uprising against Mubarak.
"If Sisi had intentions of maintaining the status quo regarding the unbalanced economic situation, he never would have entertained Booz," said Salah Diab, an Egyptian tycoon familiar with the consulting project and met Sisi last month.
"Booz is preparing the Egyptian side ... If we are going to sit with the IMF, we would be prepared to have an intelligent argument," he added.
Mursi's government failed to secure a $4.8 billion IMF loan after several rounds of talks, which analysts attributed to its unwillingness to impose austerity reforms as a condition.
Proposed steps included cutting fuel subsidies, raising the sales tax on goods and services, and taxing flotations on the stock exchange.
Masood Ahmed, director of the IMF's Middle East-Central Asia department, told Reuters the Fund had not yet been approached by Egypt about restarting loan negotiations, but was open and eager for that possibility.
UAE foreign minister Sheikh Abdullah bin Zayed said his country would welcome partners including the IMF to participate in a plan it has to revive Egypt's economy. [ID:nL6N0OH0AS]
Tawfik, of the FEI, said he supported the strategy the consultants were drafting which he learned about at a meeting with them to discuss reforms of the agro-industrial sector.
"We saw eye-to-eye on almost everything ... I feel very comfortable that what they are recommending is what needs to be done," he said.
WELCOME REFORMS
Businessmen are encouraged by hints of economic reform that could help Egypt to secure an IMF loan, unlocking billions of dollars more in foreign aid and investment which dropped off after the 2011 uprising against Mubarak.
"If Sisi had intentions of maintaining the status quo regarding the unbalanced economic situation, he never would have entertained Booz," said Salah Diab, an Egyptian tycoon familiar with the consulting project and met Sisi last month.
"Booz is preparing the Egyptian side ... If we are going to sit with the IMF, we would be prepared to have an intelligent argument," he added.
Mursi's government failed to secure a $4.8 billion IMF loan after several rounds of talks, which analysts attributed to its unwillingness to impose austerity reforms as a condition.
Proposed steps included cutting fuel subsidies, raising the sales tax on goods and services, and taxing flotations on the stock exchange.
Masood Ahmed, director of the IMF's Middle East-Central Asia department, told Reuters the Fund had not yet been approached by Egypt about restarting loan negotiations, but was open and eager for that possibility.
UAE foreign minister Sheikh Abdullah bin Zayed said his country would welcome partners including the IMF to participate in a plan it has to revive Egypt's economy. [ID:nL6N0OH0AS]
Tawfik, of the FEI, said he supported the strategy the consultants were drafting which he learned about at a meeting with them to discuss reforms of the agro-industrial sector.
"We saw eye-to-eye on almost everything ... I feel very comfortable that what they are recommending is what needs to be done," he said.