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Suppression of Free Speech in the Israel/Palestine Conflict

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Suppression of Free Speech in the Israel/Palestine Conflict

The Project Censored Show

The Official Project Censored Show

The Stranglehold of Silence: Suppression of Free Speech in the Israel/Palestine Conflict



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In the first half of the show, Eleanor sits down with bestselling author and Emmy-nominated filmmaker James Bamford to discuss Israel’s nefarious attacks on our rights to free speech and assembly here in the US. Bamford shares details about the clearly illegal activity of foreign agents working to suppress movements and actions for Palestinian rights, and how our government turns a blind eye to all of this in the name of supporting Israel.

Next up, Mickey Huff sits down with seasoned journalist and science writer Peter Byrne to talk about the media censorship of one of his recent articles which covered protests against the genocide in Gaza. Byrne discusses the sad habit that many local media outlets have of caving to pressure on the Israel/Palestine issue, how ad dollars drive news, and more.

 

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Eleanor Goldfield: Thanks, everyone, for joining us back at the Project Censored radio show. We’re very glad right now to be joined by James Bamford, who’s a best selling author, Emmy nominated filmmaker for PBS, and winner of the National Magazine Award for reporting for his writing in Rolling Stone.

His most recent book is Spy Fail: Spies, Moles, Saboteurs, and the Collapse of America’s Counterintelligence, published by Twelve Books. James, thanks so much for joining us.

James Bamford: Yeah, my pleasure.

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Eleanor Goldfield: So I wanted to start back in 2015 in Vegas, which I hope never to go back to, in a network-esque setting where billionaires plot in evil boardrooms. The birth of an attack on the people of the United States, people who are exercising their rights of free speech and free assembly in the case of support for Palestine against the apartheid regime of Israel.

And you’ve recently written an article where you mention this Project Butterfly , a brainchild of Israeli psychological warfare firm Psy Group that, according to their own documentation, which you link to in the article, “a multi vector offensive effort to significantly limit and thwart those individuals and organizations seeking to delegitimize and demonize Israel.”

So wow, James, starting here, what can you tell us about this project and the remarkably creepy and invasive means that it’s used to try and thwart Palestinian support in the United States?

James Bamford: Well, it started, like you said, in Vegas. It was in a hotel owned by Sheldon Adelson, the Venetian Resort, a huge hotel in Las Vegas.

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So an invitation was sent out to a number of very wealthy people, friends and colleagues and so forth of Adelson and his group, and they were asked to come to Las Vegas for a very secret meeting. They were told, or they were asked before, you know, before, during and after the meeting: no mention at all to the press, to be kept very confidential and so forth.

At the meeting, Adelson got up on the stage and read a letter from Benjamin Netanyahu, prime minister of Israel basically saying we’re forming a task force to try to quiet or limit, or silence critics of Israel, particularly the critics who are calling for a boycott, the BDS organization.

And, the task force required a lot of money. So he was asking for contributions as well as help. So the group there, they were basically Gulfstream warriors, they all flew in on private jets, or at least most of them. And, that night, this group, small group, a couple hundred people in this room contributed I think it was 50 million dollars to the cause.

At around the same time, Netanyahu said they would put in 30 million from the government. And hopefully with contributions from others, pro-Israelis in the US and so forth, they would get up to 900 million, almost a billion dollars for this effort.

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So soon after that, the first thing that happened was that this organization came to the United States, this Israeli organization called PSY-Group, which basically stands for Psychological Warfare Group.

And it’s a private organization in Israel that is made up largely of ex Mossad agents and psychological warfare agents and so forth, and it has connections to the Israeli intelligence. So they came to the United States, again, asking for more money. They wanted a three year project to target all these groups in the United States. They wanted, I think three million dollars, or whatever.

And so their plan, which actually leaked out after the first year, said that they were attacking individuals and groups and trying to slander them and hide any connection to Israel.

They conducted an espionage operation. They went to this one particular professor’s office in Berkeley, University of California, Berkeley, and put notices on his… car windshield, and all his neighborhood calling him a terrorist because he was advocating for the boycott of Israel. And in the report from the Psy group, it says we hid all connections to Israel and so forth.

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And so this is going on and it’s going on for a year and nobody from the FBI is doing anything either before, during, or after this whole operation. So that was one. And then there were other operations that they launched. They launched a massive intelligence operation, a troll farm, they did lots of things like that.

Eleanor Goldfield: Yeah. And I mean, it’s so clear, and you mentioned this in the piece too, that this is just very clearly acting as foreign agents. And yet no one, to my knowledge, has actually been charged with that. And you even quote someone who either did work or works for the FBI about how frustrating it was because even people in the government were well aware that this was happening, but nobody did anything about it.

I mean, is there any hope or is there anybody going after charges for this kind of activity?

James Bamford: No.

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I write books for a living. I’ve written five books, a lot of them have become bestsellers and so forth. My last one came out in January and I spent a great deal of it on this whole issue of Israel spying in the United States and nobody doing anything about it. The FBI ignoring it.

And I’ve spoken to FBI agents and they’re very frustrated about it. You know, that’s what they do for a living. That’s why they joined the FBI is to arrest people that break the law. And these people obviously, there’s a law against being a foreign agent. And if you act as a foreign agent, if you act as a person in the United States taking directions, especially secret directions from a foreign government, I mean, what does that make you? It makes you a foreign agent.

There’s never been any arrests. They’re going after, I guess the mayor of New York and some of his colleagues for having some kind of agency relationship with the Turkish government, but nobody goes after Israel for much more blatant and much more, evidentiary attacks on American citizens.

Eleanor Goldfield: Yeah, absolutely. I mean, we’ve covered it on this show, the FBI going after the Uhuru movement for supposedly being Russian foreign agents. And it’s like, what? That’s absolutely absurd.

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James Bamford: That’s totally bizarre. Yeah, bizarre and absurd. You spend so much time on such a minor group when this is going on.

Eleanor Goldfield: Right. Exactly. And, and I have to say also that this is like, when I read your article, I was like, God, this is so infuriating also, because this is that classic, it’s a classic antisemitic trope. Right. And I’ve even heard people saying this at far right rallies, like, Oh, the Jews are all sitting in their ivory towers plotting to take over the world.

And I’m like, Oh my God, but this is actually one of those moments where there are these Zionists in a boardroom plotting. And I should also point out that Zionism does not equal Judaism. I’ve talked about this on this show ad nauseum, but for listeners just joining in, fun fact: they’re actually more Christian Zionists in the United States than there are Jews worldwide.

So important to make that distinction. And I also therefore wanted to get your take on this because it seems like the goal of Project Butterfly or any of these offensives is not, has nothing to do with Judaism or protecting a supposed sacred or holy space for Jews. It’s about protecting the apartheid state of Israel, and in that process align with vehement anti Semites, many of whom spoke at the pro genocide march in D.C. on November 14th.

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But it’s about regional control and hegemony. Is that, I mean, would you say that that’s an accurate perception of that?

James Bamford: Yeah, I just talk about it my own words.

I spent my career following intelligence. That’s what I do. You know, I don’t write about religion. I don’t write about those kind of things. But, I’ve been to Israel. I covered, ustores there when I was with ABC News. I was the investigative producer for 10 years. I was shot at by the settlers with an Uzi machine gun. I’ve been covering Israel, in terms of writing about it for years.

So I focus on the intelligence and basically what they’ve been getting away with in the United States. I mean, earlier I wrote a piece for the cover story for The Nation on how Israel sent an actual agent, covert agent to the United States to get involved with the Trump campaign, for basically a quid pro quo.

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They were going to give the Trump campaign some intelligence to help the Trump campaign. And what they wanted from the Trump campaign was recognition of Jerusalem as a capital of Israel, which is what they got. And This came from FBI documents. They were released under the Free Information Act.

The FBI had actually gotten the telephone records and so forth, and conversations, email messages between these, between the agent and the Trump campaign. And yet nobody was arrested for that.

You know, we spent a year going after Russia on Russiagate, where turns out nobody was colluding from the Trump campaign, but you had the Israelis coming over and colluding with the Trump campaign, yet there was never a congressional investigation. And the FBI, obviously there was an investigation. They got all these documents through search warrants, but there was never any prosecution.

Eleanor Goldfield: Yeah, and I mean, you could also argue that just the entire organization of AIPAC should be brought down as foreign agents. I mean, it’s absolutely absurd.

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James Bamford: Well, people have been, for years have been arguing that they should be investigated as an agent of a foreign government, and nobody bothers to investigate.

I mean, the problem is it’s so delicate for politicians to actually do anything with regard to Israel. So, it’s left to journalists and outside people, and protesters and so forth.

Eleanor Goldfield: Yeah, which is, again, that point of conflating Israel with Judaism, which just drives me batty.

James Bamford: And 20 percent of Israel is Muslim.

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Eleanor Goldfield: Right. Well, and just the fact that Israel is not welcoming to all Jews. I mean, it forcibly sterilized Ethiopian Jews, so it doesn’t even…

But I also wanted to get your take because of what’s happening now, and even before October 7th, Project Butterfly creators and supporters seemed to feel like their work was a great success, but it seems now that more and more people are taking a stand against Israeli apartheid and demanding ceasefire and demanding human rights for Palestinians.

What do you feel based on what you see happening right now is the next step that Israel And the U.S. will take with regards to this?

James Bamford: With regard to the domestic spying or with regard to the war?

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Eleanor Goldfield: With domestic spying. Do you feel like they feel that they’re losing ground here or?

James Bamford: I don’t think they’re going to take any action.

They haven’t taken any action before, going back 20 years or whatever long as I’ve been writing about it. So I, I just don’t see them taking any action.

You know, what they do is they’ll go after the low hanging fruit. U wrote about this producer in Hollywood who was acting as an Israeli nuclear spy, who helped Israel acquire almost a thousand Krytons, those are blasting caps, basically the triggers for nuclear weapons. His agent, the guy that was working for him, was arrested and was facing 105 years in prison and so forth. He escaped the United States, and he was an American, but Arnon Milchan, the guy that was the producer working on behalf of Israel, nothing happened to him. I mean, he’s still producing huge movies and so forth. I mean, he even came out with a recent movie, a very popular movie.

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So nothing ever happens to the people from Israel that actually engage in this. Although some people in the United States actually get arrested occasionally.

Eleanor Goldfield: Well, on the other side of that, do you see Israel and the officials in the United States ramping up things like Project Butterfly because so many people are demanding a ceasefire and standing up against Israeli apartheid?

James Bamford: I see some people going after them. I know a lot of people are wanting to go after some of this criminal activity and agent activity, but I just don’t see that it ever gets done. I mean, it may go up to the director of the FBI. I interviewed former head of the counterintelligence division and I said, you know, why isn’t anybody going after Israelis? And he basically said, we are, but nothing ever happens.

So, that’s the answer: you have agents who actually do go after these people and look at them and write reports about them. But, when it gets up to the Justice Department as to whether to prosecute or not, which is a political issue, it’s up to the Attorney General and so forth, the decision is always, no, we’re not going to do it.

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Eleanor Goldfield: Sorry, I should have rephrased that differently. But do you see, on the other side of things, do you see, evidence or suggestions that another Project Butterfly might happen? Like, that there might be another effort, a stronger effort to go after people who stand with Palestine?

James Bamford: Yeah, there’s a, as a matter of fact, I have a new article coming out in The Nation that looks at other, similar operations that Israel’s performed, particularly directed at students, student protesters and so forth.

So now, I mean, there’s numerous activities. I wrote, about 25 percent of my book, is focused on Israeli spying in the United States. So it goes well beyond Operation Butterfly. I mean, Operation Butterfly isn’t something I just dreamed up. The New Yorker magazine wrote about it over a year ago, so it’s out there.

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I mean, they actually published the, or gave a link to the report that PSY group came out with. So it’s not as though the FBI doesn’t know about it. All they have to do is read a magazine. And, that’s the frustrating part about it. You know, you read these things and I write about these things and, and yet, it’s just like talking to a wall.

Eleanor Goldfield: Yes, well, we know a lot about that at Project Censored. It feels like screaming in an anechoic chamber sometimes.

And I wanted to get your take on this because you work so much with intelligence and, because the title of your piece that recently came out in the nation is, “Israel slept” regarding October 7th. As in they didn’t prepare actively for what was happening. Now you also note that of course Gaza is the most surveilled place on the planet. And some of that surveillance is also in use in the United States.

But, I wanted to share this that WikiLeaks back in mid October, about a week after October 7th, shared a screenshot of a release from 2007 where then Israeli Defense Intelligence Chief Amos Yadlin says, “Israel would be happy if Hamas took over Gaza because IDF could then deal with Gaza as a hostile state.”

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Wikileaks has also released secret documents passed between American diplomats back in the 80s showing that Israel was interested in enabling Hamas activity, intending to weaken the PLO, the Palestinian Liberation Organization.

And so I’m curious, what is your opinion with regards to what happened on October 7th? There’s a lot of suggestions that it wasn’t a total surprise, but that Israel wanted it to happen so that they could do what they’re doing now.

James Bamford: Yeah, that’s… having written for a long time, one thing I don’t do is speculate on things like that. I usually get data, look it up, see if it’s accurate, and then write about it.

So I, I just don’t speculate on what may happen or what might’ve happened or whatever.

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Eleanor Goldfield: But have you seen any evidence to suggest that that might’ve been the case?

James Bamford: I haven’t. I mean, you know, this is one topic I look into. I’ve written three books on the National Security Agency, so I’m not the world’s expert on what’s going on in Israel.

I just focus on Intelligence and that hasn’t come up. I’ve seen speculation, but again, unless I can actually find some hard information, I can’t really write about it.

I mean, what the Israelis were doing was what they usually do, what they call mowing the grass. They were going in there regularly, and, with weapons and drones and so forth, and every time there was a minor outbreak, they’d send in the heavy weapons or drones and take out whatever problem it was. So they were fairly confident about that, ever since the last major outbreak.

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And I think they were very confident that nothing was taking place in Gaza. And that’s why they were spending so much time trying to build up public relations in the United States by going after the pro Palestinian groups. And, so they basically took their eye off the ball, and they had a lot of technology looking at Gaza. They thought that that was sufficient.

The problem was, you know, the militants were actually building tunnels and they were communicating in the tunnels through wires, not electronically, so you couldn’t intercept it. And unless you actually tap that wire, you couldn’t hear it.

So they were working very hard to find ways to defeat the Israeli technology, which obviously they did on October 7th, to catch the Israelis completely by surprise.

But again, as I’ve talked about in the article during all that time Israel was spending a lot of time not watching Gaza, and they were watching the United States or watching at least American students and American protesters protesting their actions against the Palestinians.

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Eleanor Goldfield: And I’m curious as well, do you see with your, contacts inside the system, so to speak, do you see people wavering?

I know that there’s been, there have been calls like the Los Angeles times is now calling for a ceasefire. Some people have, at the UN for instance, have resigned over this.

Do you see folks that are backing away from the official US stance on this subject?

James Bamford: Oh, sure. Yeah. I mean, there’s been a huge, sea change, at least as far as I can see. I’ve been following this issue for a very long time. And, most of it’s been basically, a sub-rosa. In other words, it’s never talked about much.

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And now you’ve got protests 300,000 people strong. You would never see that before. You have a number of people who haven’t spoken out on the issue coming out, speaking out on it now.

I think it’ll be more because it’s just horrible what’s going on in Israel. How can anybody defend what they’re doing? I mean, you know, enormous attacks on hospitals, cutting off water, cutting off fuel. I mean, people are dying of starvation and thirst and everything else. It’s just incredible. How can anybody turn their eyes away from that? Or how can anybody support the Israelis and what they’re doing?

Eleanor Goldfield: Yeah, I mean, I ask myself the same question every day. And yet every day I wake up and the United States is still doing it. And I know that you said you don’t speculate, but I’m curious if you have any ideas or thoughts on, I mean, there was a time when Nelson Mandela was a terrorist and the United States would never have suggested that South Africa was an apartheid state.

Do you think that you’ll see it like in 10 years, 20 years, do you think we could get to the point where the U.S. is like, Actually, this is just too far. This is just too horrific and too genocidal.

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James Bamford: Well, it’ll have to start at the top down. And, you have Joe Biden who’s proudly proclaimed that he’s a Zionist.

And, I write in my book about how he bragged at a meeting in Chicago, I think it was, about how he’s had more donations, caused more donations to go to AIPAC or whatever than anybody else and so forth. So, he’s certainly not gonna change of his own free will.

It’d only be from the Congress up, and I don’t see any movement in Congress. Which means the public has to push the Congress or the White House into it. If there’s a change of government and Trump comes in or whatever, he’s the guy that put the embassy in Jerusalem and dealt with this Israeli spy during the campaign.

So, no, I mean, unless Jill Stein gets in there or somebody like that I don’t see any rapid change. It’s people like me or writers or other journalists and people out there who have an ability to change people’s thoughts to some degree.

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I think it’s moving more in that direction. And I think the public is moving more in that direction. And, you know, as the groundswell goes from the ground up, I think you might get more in Congress, but it’s just a horrible place, that and the White House in terms of accepting reality that Israel is an apartheid state. I mean, there’s no question. You have the Human Rights Watch, Amnesty International, and even Israel’s own human rights organization has declared it an apartheid state.

So why isn’t, why doesn’t the New York Times or Washington Post always say apartheid Israel like they did with apartheid South Africa?

But if you remember, there was a long time when both the United States and much of the media didn’t acknowledge the apartheid, aspect of South Africa.

We were one of the last, I think one of the last countries to do that. So, you got all that baggage there, all that history to overcome before you get the government declaring Israel an apartheid state.

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I mean, the United Nations is doing a bit more on that. And they’re, they’ve got these long investigations that never seem to come to an end in the ICC and so forth. You know, if they came out and declared war crimes and apartheid and all that, I think it would go a long way, but they’re very slow in taking action like that.

Eleanor Goldfield: Yeah, the UN is a mixed bag at best.

Well, James, thank you so much for taking the time to sit down with us.

I really appreciate it, and giving us that important context on this issue.

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James Bamford: Well, great. Thanks, Eleanor. I appreciate being on your show.

If you enjoyed the show, please consider becoming a supporting member at Patreon.com/ProjectCensored.

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Hyatt Studios pipeline reaches 4,000 rooms

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Hyatt Studios pipeline reaches 4,000 rooms

The first property under the midscale extended stay brand is expected to open in 2025

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Chancellor Rachel Reeves ‘to ABANDON’ controversial pension tax raid in relief for hardworking teachers & nurses

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Chancellor Rachel Reeves 'to ABANDON' controversial pension tax raid in relief for hardworking teachers & nurses

LABOUR’s pension tax raid is set the ditched after warnings it would hammer up to a million teachers, nurses, and public sector workers.

Chancellor Rachel Reeves had planned to raise funds by reducing tax relief on those earning £50,000 or more per year.

Chancellor Rachel Reeves

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Chancellor Rachel ReevesCredit: Getty

But Treasury officials reportedly told her any move to cut the 40 per cent tax relief on pensions would unfairly punish state employees on modest incomes, like a nurse earning £50,000 who could face an extra tax bill of £1,000 a year.

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One Government insider blasted the idea as “madness,” especially after public sector workers just received a pay rise.

Former Pensions Minister Steve Webb told The Times: “I don’t think this is something that Reeves will want to do, not least because it will infuriate public sector unions just weeks after the government agreed pay settlements with them.”

Union leaders are also understood to have cautioned the Treasury against moving forward with the proposal.

Chair of the British Medical Association pensions committee Vishal Sharma said: “Attacking our pensions in this way would completely reverse this progress by once again taking money away from doctors in a different way.

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What was Labour’s pension tax raid?

CHANCELLOR Rachel Reeves was considering reducing pensions tax relief for those earning £50,000 or more annually.

Currently, people receive tax relief based on their income tax rate.

This means basic-rate taxpayers get 20 per cent relief, higher-rate taxpayers get 40 per cent, and additional-rate taxpayers get 45 per cent.

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Under the proposed change, high earners would have seen their tax relief reduced to a flat rate, likely lower than 40 per cent or 45 per cent.

But the reduction in tax relief would have meant that higher earners might contribute less to their pensions, as the incentive to save more would be diminished.

“‘Not only would this negate the recent hard-won pay rises but it would likely reignite the recent pay disputes that have been seen across the NHS.”

The plan has been compared to Labour’s earlier disaster of a proposal to bring back a lifetime cap on pension savings, which was ditched during the election campaign after backlash over its impact on junior doctors.

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With Labour still desperate to plug a £22 billion hole in the public finances, Treasury officials are now hunting for other ways to rake in cash.

The Government has repeatedly cautioned the Budget on October 30 will involve “difficult decisions” on tax and spending.

A range of options for generating tax revenue have been touted, including increasing capital gains tax.

CGT is a tax on the profit made when you sell or dispose of an asset, like property or shares, for more than you paid for it.

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You only pay tax on the gain, not the total amount received from the sale.

There may also be a temptation to make changes to inheritance tax to target the most wealthy.

Predictions for the Autumn Statement

The Sun’s Head of Consumer Tara Evans reveals the top predictions for the Autumn Statement:

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Winter Fuel Payments

Chancellor Rachel Reeves has already announced that Winter Fuel Payments will be limited to those receiving pension credit and certain benefits. The benefit is worth up to £300 per year and currently is available to everyone over state pension age and those on certain benefits.

No rises to some taxes

Keir Starmer promised there would be no rises to National Insurance, Income Tax, Corporation Tax or VAT as part of Labour’s manifesto in the election race.

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Inheritance Tax

It has been predicted that the Chancellor Racheal Reeves will make changes to inheritance tax rates or thresholds. One suggestion is the potential shortening of the gift period before death for tax exemptions.

Pensions

Pensions featured very high up in the King’s Speech, was this a hint at how high on the agenda it will feature in the budget? Experts say there are a number of options, including reintroducing the lifetime allowance cap. Ms Reeves has previously campaigned to reduce the tax relief that higher earners get on their pensions and to  introduce a flat rate of 33% instead. Another possible option is changing the rules around pensions and inheritance tax.

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Capital Gains Tax (CGT)

There is speculation that the £3,000 tax-free allowance could be scrapped or there may be an extension of CGT to other assets.

Business Rates

There are rumours of reforms to support small businesses, possibly basing rates on land value.

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Fuel Duty

Possible rise in fuel duty, reversing the freeze since 2011 and impacting household costs. The Sun has backed drivers as part of its Keep It Down campaign since the start of 2011.

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Two killed in huge explosion near major Pakistan airport as rebels target ‘foreign investors’ in horror bomb attack

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Two killed in huge explosion near major Pakistan airport as rebels target 'foreign investors' in horror bomb attack

TWO people were killed in a massive blast near a major airport in Pakistan after rebels targeted ‘foreign investors’ in a bomb attack.

The Baloch Liberation Army claimed responsibility for the deadly attack that targeted a convoy with Chinese nationals in the port city of Karachi.

The huge explosion near Karachi airport left two dead

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The huge explosion near Karachi airport left two deadCredit: AFP
At least ten people have been injured in the attack

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At least ten people have been injured in the attackCredit: AFP
Security officials inspect the scene of a blast outside the Jinnah International Airport

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Security officials inspect the scene of a blast outside the Jinnah International AirportCredit: EPA

At least ten people have been injured in the Sunday night explosion that the Chinese embassy in Pakistan branded a “terrorist attack” targeting Chinese engineers working on a power project.

Horrific footage shows cars engulfed in flames as thick black smoke rises.

The attack came a week before Pakistan is to host a summit of the Shanghai Cooperation Organization, a security grouping founded by China and Russia to counter Western alliances.

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The spokesman for the separatist group, Junaid Baloch, said that one of their suicide bombers targeted the convoy of Chinese engineers and investors as they left the airport.

The Baloch Liberation Army is mainly based in the restive southwestern Balochistan province but it has also attacked foreigners and security forces in other parts of Pakistan in recent years.

The Chinese embassy said a convoy from the Port Qasim Electric Power Company was attacked near the airport.

“The Chinese Embassy and Consulates General in Pakistan strongly condemn this terrorist attack, express deep condolences to the innocent victims of both countries and sincere sympathies to the injured and (their) families,” the statement said, adding the Chinese side has been working with Pakistani authorities in the aftermath.

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Pakistan’s Prime Minister Shehbaz Sharif said a Chinese national was also injured and that an investigation was underway.

“Pakistan stands committed to safeguarding our Chinese friends,” he said in a statement on X.

“We will leave no stone unturned to ensure their security and well-being.”

Pakistan’s Prime Minister Shehbaz Sharif said he was shocked and saddened by the attack.

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He said the attackers were enemies of Pakistan and promised the perpetrators would be punished.

“I strongly condemn this heinous act and offer my heartfelt condolences to the Chinese leadership & the people of China, particularly the families of the victims,” he wrote on the social media platform X.

Pakistan stands committed to safeguarding our Chinese friends,” he added. “We will leave no stone unturned to ensure their security & well-being.

The Sunday night attack followed deadly attacks in August that killed more than 50 people in Balochistan.

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Sharif at the time said the attackers sought to harm Chinese-funded development projects.

In March, in northwestern Pakistan, a suicide bombing killed five Chinese engineers and their Pakistani driver as they headed to the Dasu Dam, the country’s biggest hydropower project.

The rebels targeted Chinese engineers working on a power project

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The rebels targeted Chinese engineers working on a power projectCredit: EPA
The bombing happened on Sunday night in Karachi

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The bombing happened on Sunday night in KarachiCredit: AP

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Southern Water seeks to borrow nearly £4bn from investors

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Southern Water, the heavily indebted utility controlled by Macquarie, has turned to investors for nearly £4bn in borrowings over the next five years at a time when water companies are under increasing pressure in debt markets because of the crisis at Thames Water.

Thames Water, which itself was formerly owned by Macquarie, was last week downgraded to the lowest reaches of junk because of its dwindling cash position, increasing further scrutiny on other utilities in the sector with strained finances.

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While Southern is not in the same degree of financial peril as Thames Water, its investment-grade rating and its debt covenants have both come under pressure as the group’s total debts have exceeded £6bn, according to its most recent group accounts. Of that total, liabilities related to derivatives have ballooned past £1bn.

The yield on Southern’s short-dated bonds, due in 2026, has more than doubled over the past six months to reach 13.5 per cent, as investors now require a hefty premium to hold debt that would usually offer far smaller returns due to its near maturity.

The water monopoly, which serves 4.7mn customers in the south-east of England, met bond investors in recent days to update them on its credit situation and business plan.

A Southern Water company employee repairing a road surface
Southern Water staff in Hampshire. The company’s investor presentation shows it is asking Ofwat to allow it to raise customers’ annual water bills to £734 by the end of the next regulatory period © UCG/Getty Images

In a presentation to debt investors published on its website, it revealed it planned to raise £3.8bn of debt over the next five years, telling them it had a “proven track record of capital raising”, having raised £550mn of fresh equity from Macquarie in the last financial year.

The utility also needs to raise £650mn in equity as pressures mount on its credit ratings and operating business, which is struggling with sewage pollution and potential water shortages.

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The investor presentation comes after Moody’s in July put Southern’s credit rating on review for downgrade, putting it at risk of losing its investment-grade status with one of the major agencies.

Despite Macquarie having already injected hundreds of millions of pounds, “there is no certainty that it would make further contributions if the final determination makes continued low returns likely”, Moody’s said.

Southern’s chief financial officer Stuart Ledger said at the time of the downgrade that the utility had “an excellent liquidity position”.

However, in August 2023, the company’s lenders had to waive a loan covenant breach after its credit ratings and its interest coverage ratio, a measure of a company’s ability to pay its debt, fell below key thresholds.

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Lenders agreed to waive these conditions until 2035, meaning Southern can continue to draw down all of its available borrowing facilities and raise new financing, while also allowing the utility to increase the limit on its gearing — a critical measure of debt-to-equity — from 74 to 75 per cent.

Within Southern’s complex structure, the regulated operating company, a “ringfenced” group that is supposed to be protected from stress at the holding companies above, is nevertheless running with gearing of about 70 per cent.

Diagram show Southern Water’s overall debt structure

While lower than Thames Water’s gearing of about 80 per cent, the £4.7bn debt pile at Southern’s operating company, which makes up the group’s reported debt-to-equity ratio, leaves out almost £1.2bn of liabilities relating to its inflation-linked swaps.

These are not reported in the utility’s regulatory numbers, but if included, they would take the company’s gearing level to more than 85 per cent. Were the company’s creditors to demand a payment acceleration upon a default, Southern Water’s inflation-linked swaps would rank ahead of principal and interest on its senior debt.

The presentation also shows that Southern is asking water regulator Ofwat to allow it to increase the average annual household water bill to £734 by the end of the next regulatory period, higher than Thames Water and three other water companies cited as comparisons.

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Thames Water, which saw investors backtrack on a commitment to provide £500mn of equity in March, became the first regulated water utility to lose its investment-grade rating when both Moody’s and S&P cut its credit rating.

While an equity injection at Southern Water from Macquarie could ease pressure on its operating company, its holding company also has £300mn of debt maturing next year. Representatives of Macquarie told investors at the meeting that it might need to negotiate an extension on this debt, according to one person who attended.

Thames Water’s holding company Kemble, which itself was established by Macquarie during its 2006 buyout of London’s water company, defaulted on its own debt in April, after its present shareholders backtracked on a pledge to put in fresh equity into the business.

Southern Water said the group had strong liquidity and was working towards a positive regulatory settlement. Macquarie declined to comment.

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Southern Water’s finances under scrutiny

July 2021

Southern Water fined a record £90mn for dumping untreated sewage into the sea

august 2021

Macquarie takes over Southern Water in a deal agreed with regulator Ofwat

July 2023

Southern Water suspends dividend payments until at least 2025 as Fitch downgrades its debt to triple B

August 2023

Lenders agree to waive Southern’s covenants

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October 2023

Macquarie injects £550mn in equity into Southern Water

July 2024

Moody’s puts Southern’s credit rating on review for downgrade

september 2024

S&P and Moody’s downgrade Thames Water’s credit rating

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Dynamic Planner announces CRM integration with Adviser Cloud

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Dynamic Planner announces CRM integration with Adviser Cloud

Dynamic Planner has announced a new CRM integration with Adviser Cloud.

Financial advisers who use the new integration will be able to “seamlessly transfer client records easily, efficiently and securely” between Dynamic Planner and Adviser Cloud.

Data is passed between the systems, with Adviser Cloud validating all data, removing the need for rekeying, which minimises manual errors and saves time.

Dynamic Planner chief revenue officer Yasmina Siadatan said: “The Dynamic Planner ecosystem is continuously expanding and today we are pleased to announce another two-way integration, this time with Adviser Cloud. This will be a game changer for anyone using Adviser Cloud and Dynamic Planner, providing a seamless user experience.

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“As the latest in our growing suite of strategic partners, this new CRM integration with Adviser Cloud will continue to transform the processes of financial planning firms and drive significant efficiencies.  Integrations are fundamental for our clients and we are committed to our long-term strategy of continuously enhancing the flow of information to and from Dynamic Planner as the system of record.”

Adviser Cloud tech lead Ewan Humphreys added: “Our integration with Dynamic Planner is designed to make financial planning simpler and more efficient. Adviser Cloud has always focused on providing intuitive, user-friendly software for financial advisers, and this integration continues that mission by eliminating data rekeying and enhancing workflows. This partnership enables advisers to deliver even better client experiences while saving time and reducing operational costs.”

Adviser Cloud specialises in intuitive and easy-to-use software for IFAs, designed to reduce costs, increase efficiency, and deliver an exceptional client experience.

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South Korean woman sues government and adoption agency after her kidnapped daughter was sent abroad

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South Korean woman sues government and adoption agency after her kidnapped daughter was sent abroad

SEOUL, South Korea (AP) — A 70-year-old South Korean woman sued her government, an adoption agency, and an orphanage Monday over the adoption of her daughter, who was sent to the United States in 1976, months after she was kidnapped at age 4.

The damage suit filed by Han Tae-soon, whose story was part of an Associated Press investigation published last month, could ignite further debate on the dubious child-gathering practices and widespread falsification of paperwork that tarnished South Korea’s adoption program, which annually sent thousands of kids to the West during the 1970-80s.

It was the first known case of a Korean birth parent suing for damages against the government and an adoption agency over the wrongful adoption of their child, said Kim Soo-jung, one of the lawyers representing Han.

Han searched for her daughter, Laurie Bender, for more than 40 years before they reunited through DNA testing in 2019. Speaking to reporters in front of the Seoul Central District Court, Han argued that the South Korean government was responsible for failing to prevent the adoption of Bender.

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Han had reported to police that her daughter was missing and desperately searched for her, frequently visiting police stations, government offices and adoption agencies and even going on Korean media. She had her daughter’s picture displayed everywhere — in subway stations, on lamp posts, on bags of snacks that advertised missing children, the Korean version of American milk cartons.

Han accuses Holt Children’s Services, South Korea’s biggest adoption agency, of facilitating Bender’s adoption without checking her background. Her lawyers said the Jechon Children’s Home made no effort to find the parents after Bender was placed at the facility by police in May 1975, a day after Han reported her as missing.

In her adoption papers, Bender, named Shin Gyeong-ha at birth, is described as an abandoned orphan with no known parents. Under a new Korean name made by the orphanage, Baik Kyong Hwa, she was sent to the United States in February 1976.

“For 44 years, I wandered and searched for my child, but the joy of meeting her was only momentary and now I am in so much pain because we can’t communicate in the same language,” Han said, fighting back tears.

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“It turns out they didn’t make an effort to find her clearly existing parents and instead disguised her as an orphan for adoption abroad. I want the government and Holt to explain to us how this happened.”

Kim, the lawyer, said the government is at fault for the botched child search that led to Bender’s adoption, saying she could have easily been found if missing child information was properly shared between police stations or if officers had tried to search orphanages.

“While the state bears the large responsibility for not fulfilling its duty to help find missing children and reunite them with their families, we also believe that the (orphanage) and adoption agency cannot be spared from responsibility as well,” Kim said.

“We suspect that these child protection institutions failed to carry out their ethical obligation to help find the child’s parents, even when the child was saying (she) had a family and had parents.”

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Jeon Min Kyeong, another lawyer representing Han, said she is seeking about 600 million won ($445,000) in damages. The lawsuit lists Han, her husband and two of her younger children as plaintiffs, but not Bender, Jeon said.

South Korea’s Justice Ministry, which represents the government in lawsuits, and Holt didn’t immediately comment on the suit.

In an earlier interview with AP, Bender said she was approached by a strange woman while playing near her home in the city of Cheongju. She remembers the woman saying her family didn’t want her any more because Han had another baby. Distraught, Bender went with the woman, who, after taking her on a train ride, deserted her in Jechon, a city 50 miles away.

After failing to find her daughter for four decades, Han registered her DNA with a nonprofit group called 325 Kamra, which helps Korean adoptees reunite with their families through genetic information. In the United States, Bender took a DNA test because her own daughter was curious about their heritage and 325 Kamra connected them in 2019.

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Just weeks after finding her mother, Bender and her daughter flew to Korea to meet Han. Recognizing Bender immediately, Han ran to her, screaming, moaning, running her fingers through Bender’s hair.

“It’s like a hole in your heart has been healed, you finally feel like a complete person,” Bender said. “It’s like you’ve been living a fake life and everything you know is not true.”

The AP investigation, which was also documented by Frontline (PBS), described how the South Korean government, Western nations and adoption agencies worked in tandem to place around 200,000 Korean children in the United States and other Western nations, despite years of evidence that children were being procured through dubious or dishonest means. Western nations ignored these problems and sometimes pressured South Korea to keep the kids coming as they focused on satisfying their huge domestic demands for babies.

In 2019, Adam Crapser became the first Korean adoptee to sue the South Korean government and an adoption agency for damages, accusing them of mishandling his adoption to the United States, where he faced legal troubles after surviving an abusive childhood before being deported in 2016.

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After four years of hearings, the Seoul Central District Court last year ordered Crapser’s adoption agency, Holt, to pay him 100 million won ($74,000) in damages for failing to inform his adopters they needed to take separate steps to obtain his citizenship after his adoption was approved by a state court.

However, the court dismissed Crapser’s accusations against the Korean government over alleged monitoring and due diligence failures. The case is now with the Seoul High Court after both Crapser and Holt appealed.

___

AP writer Claire Galofaro in Louisville, Kentucky, contributed to this report.

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