April 18, 2024

Britain Detains the Partner of a Reporter Tied to Leaks

Mr. Greenwald’s partner, David Michael Miranda, 28, is a citizen of Brazil. He had spent the previous week in Berlin visiting Laura Poitras, a documentary filmmaker who has also been helping to disseminate Mr. Snowden’s leaks, to assist Mr. Greenwald. The Guardian had paid for the trip, Mr. Greenwald said, and Mr. Miranda was on his way home to Rio de Janeiro.

Mr. Miranda, Mr. Greenwald said, was told that he was being detained under Section 7 of the British Terrorism Act, which allows the authorities to detain someone for up to nine hours for questioning and to conduct a search of personal items, often without a lawyer, to determine possible ties to terrorism. More than 97 percent of people stopped under the provision are questioned for under an hour, according to the British government.

“What’s amazing is this law, called the Terrorism Act, gives them a right to detain and question you about your activities with a terrorist organization or your possible involvement in or knowledge of a terrorism plot,” Mr. Greenwald said. “The only thing they were interested in was N.S.A. documents and what I was doing with Laura Poitras. It’s a total abuse of the law.” He added: “This is obviously a serious, radical escalation of what they are doing. He is my partner. He is not even a journalist.”

London’s Metropolitan Police Service, which had jurisdiction over the case, said in a statement that Mr. Miranda had been lawfully detained under the Terrorism Act and later released, without going into detail. “Holding and properly using intelligence gained from such stops is a key part of fighting crime, pursuing offenders and protecting the public,” the statement said.

The Guardian published a report on Mr. Miranda’s detainment on Sunday afternoon.

Mr. Greenwald said someone who identified himself as a security official from Heathrow Airport called him early on Sunday and informed him that Mr. Miranda had been detained, at that point for three hours. The British authorities, he said, told Mr. Miranda that they would obtain permission from a judge to arrest him for 48 hours, but he was released at the end of the nine hours, around 1 p.m. Eastern time.

Mr. Miranda was in Berlin to deliver documents related to Mr. Greenwald’s investigation into government surveillance to Ms. Poitras, Mr. Greenwald said. Ms. Poitras, in turn, gave Mr. Miranda different documents to pass to Mr. Greenwald. Those documents, which were stored on encrypted thumb drives, were confiscated by airport security, Mr. Greenwald said. All of the documents came from the trove of materials provided to the two journalists by Mr. Snowden. The British authorities seized all of his electronic media — including video games, DVDs and data storage devices — and did not return them, Mr. Greenwald said.

A spokesman for the British Foreign Ministry said the episode was a “police matter” and would provide no further comment. Civil rights groups in Britain have criticized Section 7 of the Terrorism Act, accusing the authorities of using the provision to arbitrarily stop and detain travelers, particularly Muslims. The British Home Office has said it is reviewing the provision in an effort to address the concerns.

A lawyer for The Guardian in London was working on trying to understand what had happened, as were foreign-affairs officials for Brazil both in that country and in London, Mr. Greenwald said. He said that he received a call from the Brazilian foreign minister about 40 minutes after alerting the Brazilian government, and that the Brazilian authorities were outraged.

Sergio Danese, the under secretary for consular affairs at Brazil’s Foreign Ministry, said Brazil’s consul general and embassy officials in London had worked to resolve the situation. In a statement, the Brazilian Foreign Ministry expressed “grave concern” about the incident, which it said was “without justification” since there could be no “legitimate” accusations that Mr. Miranda fell under the Terrorism Act.

Charlie Savage reported from Washington, and Michael Schwirtz from New York.

Article source: http://www.nytimes.com/2013/08/19/world/europe/britain-detains-partner-of-reporter-tied-to-leaks.html?partner=rss&emc=rss

DealBook: Intel to Invest in Research and Development in Brazil

SAO PAULO – Intel plans to invest $152 million in Brazil over the next five years in research and development, the chip manufacturer said on Wednesday. In doing so, the company will partner with the Brazilian government, which has made increasing the country’s software output a top priority.

The direct investment will go toward increasing head count and resources internally but also paying for research at seven Brazilian universities, the president of Intel Brazil, Fernando Martins, told DealBook on Wednesday. Those in the initial group include Unicamp, the University of Sao Paulo and the University of Brasilia.

The Brazilian government is expected to match Intel’s investment, Mr. Martins said. Last year, President Dilma Rousseff said the Brazilian government would spend at least $254 million to stimulate software development. That figure is expected to grow and does not even include Brazil’s national development bank’s initiatives. Transitioning to an innovation-based economy is an important issue in this commodity-export dependent economy.

Brazil is Intel’s third-largest market, Mr. Martins said. Additionally, its venture capital arm, Intel Capital, has long been active here, making its first investment in 1999. Since then, it has invested approximately $100 million in more than 25 companies, according to Dave Thomas, head of Intel Capital.

But the company is far from alone these days as other technology giants have also recently bet on Brazil’s capabilities as a software and software solutions provider. Microsoft last November said it would open a research center in Rio de Janeiro, investing $102 million over up to four years. Also last year Cisco said it planned to invest $508 million over four years.

Article source: http://dealbook.nytimes.com/2013/02/27/intel-to-invest-in-research-and-development-in-brazil/?partner=rss&emc=rss

Embattled ThyssenKrupp Reports Huge Loss

FRANKFURT — The German steel maker ThyssenKrupp, battered by slow economic growth and a series of corruption scandals, reported the biggest loss in its history late Monday and confirmed that three top executives would leave the company.

The loss of 5 billion euros ($6.5 billion) for the fiscal year that ended in September capped a tumultuous year for a company that once symbolized German industrial might. The period included the disclosure of huge losses at the unit that operates steel plants in Brazil and Alabama, fines related to a price-fixing scandal and other setbacks.

Last year, the company reported a loss of 1.8 billion euros.

“I’m not going to talk anything up here, because it is obvious that a great deal has gone wrong in the past,” Heinrich Hiesinger, the chief executive of Thyssen-Krupp, said Tuesday at its headquarters in Essen, Germany.

ThyssenKrupp attributed 3.6 billion euros of the loss to its unit Steel Americas, which Mr. Hiesinger referred to as a “disaster.” He conceded that managers had valued plants in Rio de Janeiro and Calvert, Ala., at far above their market value. Accounting rules required the company to record a loss after recognizing the actual worth of the factories.

The Brazilian factory suffered from cost overruns during construction, and both mills were hit by slack demand, ThyssenKrupp said.

The fiscal-year loss means that ThyssenKrupp will not pay a dividend to shareholders for the first time since it was created in a merger in 1999. Still, Thyssen-Krupp shares rose 5.63 percent in Frankfurt on Tuesday as investors concluded that Mr. Hiesinger, who became chief executive in January 2011, was grappling with the problems.

“The track record of new management has been very solid,” analysts at Credit Suisse said Tuesday in a note to clients. “They are dealing with perhaps some of the most difficult issues of Thyssen-Krupp’s existence.”

Blame for the problems fell on three members of the company’s six-member executive board. ThyssenKrupp said the three had agreed to terminate their contracts at the request of the company’s supervisory board.

The managers are Olaf Berlien, whose responsibilities included plant technology; Jürgen Claassen, the longtime head of communications; and Edwin Eichler, who was in charge of Steel Americas. About 50 managers have already left the company after they were found to have violated compliance codes, Mr. Hiesinger said.

Mr. Claassen, who was also responsible for compliance with the company’s ethics rules, has been the subject of articles in the newspaper Handelsblatt and other news outlets asserting that he took journalists on junkets that were considered lavish even by the flexible standards of the European press.

The Essen prosecutor’s office, which investigated the accusations, said last week that it had found no evidence that the trips broke any laws.

Questions have also been raised about whether top managers concealed the true extent of the company’s problems, but Mr. Hiesinger said there was no evidence of wrongdoing. “To date there are no facts indicating compliance infringements or illegal conduct by any of them,” he said.

But the huge loss, at a time when most big German companies continue to do well, was a further blow to ThyssenKrupp’s reputation.

In July, the company paid a 103 million euro fine to the Federal Cartel Office in Germany after accusations it was part of a conspiracy to fix the price of railway tracks sold to Deutsche Bahn, the national railroad, and other customers. The company warned on Tuesday that it might face additional investigations or lawsuits stemming from its involvement in the cartel.

Krupp, which merged with Thyssen in 1999 after one of the first hostile takeover battles in German history, once symbolized the country’s industrial might. Founded in 1811, Krupp was responsible for many advances in steel technology but also developed and built the cannons and other weapons that provided the foundation for German militarism in the 19th and 20th centuries. During World War II, Krupp used slave labor at its factories. Its top managers were later convicted of war crimes, though they served only brief prison terms.

In recent years, ThyssenKrupp has been overshadowed by companies like Daimler and Siemens, reflecting a shift in Germany’s economic center of gravity from the Ruhr Valley to the south. Daimler is based in Stuttgart, and Siemens in Munich.

With sales of about 40 billion euros in the fiscal year ended Sept. 30, ThyssenKrupp has about half the revenue of fellow industrial giant Siemens and a little more than a third the sales of Daimler. Still, it remains an enormous company with 152,000 workers, including 58,000 in Germany.

Besides making steel, primarily for automakers, Thyssen-Krupp also makes elevators, builds and equips factories, and manufactures submarines and other naval vessels.

Mr. Hiesinger, a former Siemens executive, acknowledged on Tuesday that “our leadership culture has failed in many areas of the company.”

“In the past there has been an understanding of leadership in which ‘old boys’ networks’ and blind loyalty were more important than business success,” he said. “And there were obviously some who thought that rules, regulations and laws do not apply to everyone.”

“I am aware that through this attitude we have lost a great deal of trust and credibility,” Mr. Hiesinger said. “We must now earn back both.”

Article source: http://www.nytimes.com/2012/12/12/business/global/record-loss-for-embattled-thyssenkrupp.html?partner=rss&emc=rss