Archive - Jun 10, 2009

• Report on Iraq and Afghanistan contracts reveals fraud and waste
• Chrysler seals lifesaving alliance with Italy's Fiat
• IMF loans $209 million to Kenya despite Finance Ministry corruption scandal
• USAID funds traced to Colombian drug traffickers and paramilitaries
• US says Cambodia could become terrorist haven; Muslim minority speaks out

• White supremacist octogenarian opens fire in US Holocaust Museum
• Palau agrees to take Guantanamo Uighurs
• House subcommittee examines single-payer health proposal
• Chemical investigation begins following explosion at NC ConAgra plant
• Boston Globe union files complaint with NLRB over 23% pay cut
• UN completes draft sanctions against North Korea
• UK’s controversial house arrest system takes a legal hit

The United States embassy in Phnom Penh says it’s worried that  terrorists may take advantage of poor governance in Cambodia.  In a recent report, Washington said Cambodia's corruption, poverty and lax management of its border make Cambodia vulnerable to international crime.  When terrorism is mentioned in Cambodia, U.S. officials often point the finger at Cambodia's ethnic minority, the Cham people, which is 90% Muslim.  Khortieth Him reports.

Colombia is the largest recipient of US aid in the hemisphere – taking in over 6 billion dollars from the US government since 1999.  Most of it goes towards financing Colombian army efforts to disrupt cocaine trafficking networks.  But a small portion also goes to social and economic projects that are meant to wean farmers away from growing illicit crops like the coca leaf, the raw material of cocaine.  However, a report published recently by the The Nation claims that some of this aid money has ended up in the hands of businesses that belong to paramilitary leaders and alleged drug traffickers.  Investigative journalist - and FSRN contributor - Teo Ballvé wrote the report. He recently spoke to FSRN about his findings.

Industrialized countries and emerging markets were the first to be hit by the global economic crisis, and it seems the most vulnerable countries are now also suffering.  Africa’s export earnings have plunged and foreign investment there is decreasing.  The International Monetary Fund last week approved a $209 million dollar loan to Kenya, as it emerged that economic shocks had left the country’s balance of payments with a deficit of 677 million dollars.  The loan should help Kenya to close its financing gap, but it comes as Kenya’s Finance Ministry faces accusations of corruption and economic mismanagement, leading many in Kenya to wonder at the IMF’s decision. Arusha Topazzini reports from Nairobi.

Chrysler has finalized its alliance with Fiat - sealing the deal after the US Supreme Court lifted the final hurdle on it, earlier this week.  The restructuring intended to bring the company out of bankruptcy took only 42 days.  But congressional representatives have expressed concerns about how the restructuring of Chrysler and General Motors will impact America's auto dealers.   Matt Pearson reports.

A new report on government contracts in Iraq and Afghanistan reveals widespread waste, fraud and abuse.  A commission set up to investigate government contracting in the war zones says Iraq will soon host more private contractors than US military personnel.  This report comes out as Congress struggles to pass an additional 90 billion dollar emergency war supplemental FSRN’s Leigh Ann Caldwell reports.