Author: Admin

Tuesday, May 20, 2008

The discovery of the presence of airborne asbestos in a middle school in Montclair, New Jersey Friday prompted the evacuation of over 200 students from the school and the school’s closure. Renaissance Middle School, part of the Montclair Public Schools in New Jersey, was closed Monday and remains closed Tuesday while undergoing asbestos testing and cleaning.

According to a letter sent home to parents by the Superintendent’s Office of Montclair Public Schools on Friday, “plaster may have been disturbed” during construction on new fire doors at the Renaissance School building on Thursday.

An inspection arranged by the school district indicated asbestos was present in the plaster, and a subsequent inspection performed by asbestos consultant Detail Associates revealed “a level of airborne asbestos fibers that exceeded the acceptable range” in the third floor hallway of the school. Montclair Public Schools business administrator Dana Sullivan told The Star-Ledger that testing conducted on March 31 revealed the presence of asbestos in a brown undercoating of plaster at the Renaissance School building.

The affected area was sealed off, and some students were moved to other areas of the building while others were moved to off-site locations. District Public Information Officer Laura Federico told The Montclair Times that sixth and seventh graders were transported to Hillside Elementary School, and eighth graders were bussed to Montclair High School. “The safety of our students and staff is always our first concern,” said Federico.

According to The Montclair Times, Detail Associates conducted a cleaning protocol at the school on Saturday and tested the building to make sure it did not contain unacceptable levels of asbestos fibers. The letter sent to parents Friday by the Superintendent’s Office said that Detail Associates had told the district that the building would be “cleaned, tested and cleared for occupancy by Monday morning”. The school remained closed Monday, and a meeting was held between parents and school district officials. A Parent-Teacher Association meeting is planned for Wednesday night.

The Star-Ledger reported that the ongoing asbestos cleanup of the school is being supervised by the state Department of Environmental Protection. At the meeting Monday morning between parents and school district officials, parents demanded that the inside of lockers be included as part of the asbestos cleanup. This additional step in the asbestos inspection process prompted the school’s closure Tuesday. A Monday statement by the Business Office of Montclair Public Schools said that the Renaissance School would remain closed Tuesday for sixth and seventh grade students “so that an extensive cleanup and additional asbestos testing can be completed”. Eighth grade students did not have classes scheduled as a trip to Washington, D.C. had previously been planned; the school trip is unaffected by the recent asbestos incident.

Steve Jaraczewski of Detail Associates was present at the district meeting Monday, and said that one of four test samples taken at the school was positive for the presence of airborne asbestos at over six times acceptable levels. Jaraczewski was critical of the asbestos management plan provided by Roman Catholic Archdiocese of Newark, which owns the school’s building and leases it to Montclair Public Schools.

Jaraczewski said that the state Department of Environmental Protection has required asbestos management plans since 1988, but that the company that drafted the asbestos plan for the Archdiocese of Newark is out of business. Representative for the archdiocese Jim Goodness emphasized that the building would be back open for classes soon. “The kids will be able to go back to school soon, and that’s the important part,” said Goodness.

Exposure to airborne asbestos can lead to mesothelioma, a cancer which develops in the sac surrounding the lungs and chest cavity, abdominal cavity, or the sac surrounding the heart. Exposure to disturbed asbestos fibers can also lead to lung scarring, a condition called asbestosis, and lung cancer. Patients with malignant mesothelioma generally do not have positive outcomes, and once diagnosed have six months to a year to live.

Tuesday, April 11, 2006

The Israeli cabinet today (Tuesday) declared Prime Minister Ariel Sharon “permanently incapacitated,” a declaration that officially ends his tenure as Prime Minister.

Acting Prime Minister Ehud Olmert, whose centrist Kadima party won parliamentary elections in March, is currently in negotiations to form a coalition government.

Sharon has been in a coma since suffering a massive hemorrhagic stroke on January 4. Under Israeli law, Olmert can serve in the capacity of acting prime minister for only 100 days, until April 14, before a permanent replacement must be chosen. The official announcement was moved up to Tuesday because the Jewish holiday of Passover begins on Wednesday, April 12. Olmert is expected to be named as Sharon’s permanent replacement.

Friday, January 19, 2007

In November 2006 Pensacola, Florida evangelist Kent Hovind and his wife, Jo, were found guilty on 58 federal counts of “willful failure” to payroll taxes, structuring bank withdrawals, and obstructing federal agents. On January 19, 2007 Hovind was given ten years in federal prison, ordered to pay $640,000 in owed funds to the Internal Revenue Service, pay prosecution’s court costs of $7,078, and serve three years parole once released. Originally in November, Hovind was ordered to forfeit $430,400 and faced a maximum of 288 years in prison.

Monday, March 21, 2005

Automobile industry pioneer, John DeLorean, died Saturday in a New Jersey hospital by complications from a stroke.

DeLorean was born in 1925 in Detroit, Michigan to European immigrant parents. He received an education in automotive engineering and quickly rose through the ranks of Packard and later General Motors (GM). DeLorean was credited with the development of the Pontiac GTO, which helped introduce the era of “muscle cars”. By 1965, DeLorean led the entire Pontiac division, and four years later was promoted to the prestigious position of leading GM’s Chevrolet.

In 1973, DeLorean quit General Motors and started his own company, the De Lorean Motor Company. The company’s product was the DMC-12, an unusual car featuring an unpainted, stainless-steel exterior and gull-wing doors. The company started production in 1981 but failed less than two years later, having produced under 9,000 vehicles. Despite the company’s failure and the car’s dismal sales, the car itself gained a cult following after the release of the 1985 movie Back to the Future which featured the car as a time-travel machine.

DeLorean himself was in nearly as much trouble as his company. In 1982 he was arrested for attempting to sell $24 million worth of cocaine to undercover police, and after his company’s failure, he became involved in a multitude of lawsuits alleging investor fraud. Though DeLorean successfully resolved the cocaine case after claiming entrapment, his other legal cases would drag on until 1999, when he declared bankruptcy.

Friday, February 24, 2006

The Virginia legislature’s House of Delegates voted unanimously in a sub-committee to kill a bill that would ban public smoking in the Mid-Atlantic state. The vote was reached during a six-member sub-committee meeting on Thursday.

The Virginia Senate, the upper house of the General Assembly, passed on Monday a week ago a bill that would ban the indoor smoking of tobacco in restaurants, bowling alleys, and other public places, including workplaces. The bill was not expected to pass the House, but the thumbs up signal by the Senate signaled a shift in tolerance towards the product in a state known for its 400-year economic history steeped in the cultivation of the cash crop.

The General Laws sub-committee based its vote on the rights of property owners, rights that would be violated by a state-wide ban. The debate was largely centered on the issue of restaurant smoking. The committee noted there was no law that said a restaurant must allow smoking.

“They have a right not to go where people are smoking,” said delegate John Cosgrove (R-Chesapeake). He noted the consumer and the restaurant businesses can decide whether to allow smoking. “They have a right and responsibility to take care of themselves,” he said.

A Virginia Beach restaurant owner, Matt Falvey, said “The plain truth is that the majority of our citizens do not smoke, and do not want to be around smoke,” according to the Richmond Times-Dispatch. Falvey, who owns three restaurants, said “In addition, restaurant workers should not be subjected to the harm caused by secondhand smoke.”

Falvey said he has smoking sections in his restaurants because not to would put him at a competitive disadvantage with other restaurants that have smoking sections. An across the board state-wide ban would level the playing field by settling the issue.

Senate Bill 649, known as the Virginia Indoor Clean Air Act, to become law in the nation’s 4th largest tobacco growing state would require passage by the House. Last year, the Senate killed a similar bill to ban indoor smoking in public places. New procedural rules introduced in Virginia this year allow a bill’s passage to be blocked by sub-committee, but there remains a slim chance it could be revived.

The original version of the bill, which allowed cities and counties to decide locally on the issue, was voted down by the Senate. The bill was brought back by Brandon Bell of Roanoke County, and passed in a revised version that would make than ban state-wide, with no local authority on the issue. The measure was passed by the Senate in a 21 – 18 vote, after it received the support from the Virginia Restaurant Association.

In Maryland, a similar ban was voted down this week by a House committee. New Jersey is the latest state to join the ranks of a total of 11 states that ban smoking in restaurants, bars, and workplaces.

Soybean over-took tobacco as Virginia’s top cash crop in 2005.

Monday, January 12, 2009

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.‘s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.

Friday, March 14, 2008

Wikipedia founder Jimmy Wales has been accused of editing pages in the encyclopedia in return for a donation to the Wikimedia Foundation. In an article published Tuesday, the Sydney Morning Herald reported that former Novell computer scientist Jeff Merkey alleged Wales had made edits to his article on his behalf, in exchange for a donation to the Wikimedia Foundation. The news hit the website Slashdot later Tuesday, where the incident was dubbed “DonorGate”.

According to The Daily Telegraph, Merkey claims that he was told by Wales in 2006 that the Wikipedia article about him could be made more favorable in exchange for a donation. Merkey made a donation of US$5,000 to the Wikimedia Foundation, and Wales made edits to the Wikipedia article about Merkey around the same time. Merkey published his claims on a public Wikimedia mailing list and sent a statement to The Associated Press.

In a response Wales called Merkey’s statements “nonsense”, saying “Of course I would never offer, nor accept any offer, whereby a donation would buy someone special editorial treatment in the encyclopedia. I do routinely assist people with WP:BLP issues, and I do courtesies for many people. Donations have no bearing on that at all.” WP:BLP refers to Wikipedia’s policy regarding biographies of living persons on the encyclopedia.

After deleting the Wikipedia article about Merkey in 2006, Wales wrote to Wikipedia editors he had done so “because of the unpleasantness of it” and requested that they “be extra careful here to be courteous and assume good faith”. After erasing the article, Wales placed the article under protection with editing access limited to established users. Merkey ceased his $5,000.00 per year payments to the Wikimedia Foundation after reviewing what he called “evidence of diversion and mismanagement of the charities funds by Wales and the Wikimedia Board of Trustees”.

In a statement responding to a post about the incident on the site Techtree.com, Wikimedia Foundation’s Head of Communications Jay Walsh addressed the Foundation’s principles regarding conflict of interest: “The Wikimedia Foundation (the Foundation which operates and maintains Wikipedia and other free knowledge projects) has never solicited or accepted donations for the purposes of making edits or offering protection to Wikipedia articles. Nor has Jimmy Wales ever solicited or accepted donations for the Foundation in this capacity. These allegations are completely false. … Jimmy has been unfailingly ethical and frugal in the use of all Foundation funds. The Wikimedia Foundation, its staff and board members, and the users of Wikipedia itself hold the core principles of ‘no conflict of interest’ in the highest regard.”

After leaving Novell amidst allegations of misappropriation of trade secrets, Merkey was sued by his former employer. He filed a harassment lawsuit against organizations including the website Slashdot in 2005. Merkey filed a suit against Delta Air Lines and Natural Selection Foods in 2006, claiming his son had become sick from E. coli contaminated spinach.

Merkey is banned from editing Wikipedia due to a ruling by Wikipedia’s Arbitration Committee. The Wikipedia Signpost, Wikipedia’s community-written and community-edited newspaper, reported that a Wikipedia user account used by Merkey was blocked in October 2005 for “Personal attacks, legal threats, harassment, disruption”. Merkey was later allowed to come back to edit Wikipedia in May 2007 under a different account. As the result of a ruling by Wikipedia’s Arbitration Committe in a July 2007 arbitration case, Merkey and two users who had harassed him on Wikipedia were banned from editing the encyclopedia for one year.

Last week Jimmy Wales faced accusations by former Wikimedia Foundation executive Danny Wool that he misused the non-profit organization’s funds, and attempted to expense a visit to a Moscow massage parlor and high-priced bottles of wine. In an interview with CNET TV, Wikimedia Foundation Executive Director Sue Gardner described Wool as “a disgruntled former employee” and called his claims “a whole bunch of unsubstantiated rumors and gossip”. Wales’s former girlfriend, journalist Rachel Marsden, recently leaked purported instant message transcripts with Wales, which implied Wales had used his influence to change the article about Marsden on Wikipedia. Wales ended his relationship with Marsden and made a public statement to that effect on Wikipedia, and in response Marsden opened an auction for some of Wales’s clothing on eBay.

Tuesday, January 15, 2008

Satire site Uncyclopedia, a parody of online encyclopedia Wikipedia, has been labeled by the Malaysian government as dangerous. The Internal Security Department of Malaysia issued the warning today, saying that the site has “messages and information insulting Malaysia”.

The warning notes the creation date of the website as being 5 January 2005, and hosted by Wikia, Inc., both of which are correct. However, it claims Wikia owns Wikipedia; Wikipedia is a charitable non-profit website owned by the non-profit Wikimedia Foundation, while Wikia is an independent, for-profit company.

The report evidently mentions that Uncyclopedia covers Malaysian “history, culture, the political leaders, the government, the national song and the name / history of the national flag,” none of which is “correct”. They accuse the website of helping to reinforce a bad international image of their country.

There are no reports of the site being blocked from access within the country, only this statement, which urges Malaysians not to circulate the content.

Uncyclopedia’s article on Malaysia begins:

The site has fired back with a parody article posted at the site under their UnNews section, titled Uncyclopedia Internal Security Department warns on Malaysia. The article suggests that the “Internal Security Department of the Uncyclomedia Foundation,” which is a facetious and fictitious parent organization of Uncyclopedia, identifies Malaysia “as a dangerous country… It warned its people not to use the country today.”

There are forty-seven individual language editions of Uncyclopedia, including Tolololpedia, which is written in Bahasa Melayu, the Malay language. This is in addition to fictional “language” editions which include Oscar Wilde, Newspeak, N00b, White Supremacist, and Re: PharmaccgRy.