FBI question Benghazi consulate attack suspect

TUNIS, Tunisia (AP) — After months of asking, agents from the FBI questioned the only known suspect in the Sept. 11 attack on the U.S. consulate in Benghazi that killed four diplomats, the suspect's Tunisian lawyer told The Associated Press Saturday.
Ali Harzi, a Tunisian, was detained in Turkey and extradited to Tunisia in October where authorities have said he is "strongly suspected" of being involved in the attack.
His lawyer, Anwar Oued-Ali, added that Harzi was also questioned about an attack on the U.S. embassy in Tunisia, a few days later, suggesting the American authorities are looking into if there is a connection between the two attacks.
The Sept. 11 assault by armed men in the Libyan city of Benghazi killed U.S. Ambassador Chris Stephens and three other American diplomats. Members of an Islamist militia, Ansar al-Sharia are suspected in the strike, but there has been little progress in the Libya-based investigation into the attack.
A few days later, a mob attacked the U.S. embassy in Tunis, destroying property and an American school in the area, resulting in four deaths. The attack was believed to be instigated by a local group also called Ansar al-Sharia, but it is unclear if it is connected to the Libyan organization.
In early November, Republican senators Lindsey Graham and Saxby Chambliss announced that Tunisia had agreed to allow the FBI to interview Harzi, but it took another month and a half to organize the interview due to legal questions over any infringements on Tunisian sovereignty.
In the end, three FBI investigators using a Moroccan translator posed questions to Harzi for three hours through the Tunisian judge presiding over the case.
Harzi's defense team was not allowed to attend the questioning on the grounds that he was being interviewed as a "witness" rather than a defendant.
Harzi is being charged by the Tunisians for "membership in a terrorist organization." Harzi denies the charges.

Read More..

Rebels threaten to storm 2 Syrian Christian towns

BEIRUT (AP) — Rebels have threated to storm two predominantly Christian towns in central Syria if residents do not "evict" government troops they say are using the towns as a base to attack nearby areas.
A video released by rebels showed Rashid Abul-Fidaa, who identified himself as the commander of the Ansar Brigade for Hama province, calling on locals in Mahrada and Sqailbiyeh to rise up against President Bashar Assad's forces or prepare for an assault.
"Assad's gangs in the cities are shelling our villages with mortars and rockets destroying our homes, killing our children and displacing our people," said Abdul-Fidaa, who wore an Islamic headband and was surrounded by gunmen. "You should perform your duty by evicting Assad's gangs," he said. "Otherwise our warriors will storm the hideouts of the Assad gangs."
Abdul-Fidaa accused regime forces of taking positions in the two towns in order to "incite sectarian strife" between Christians and the predominantly Sunni opposition. Assad belongs to the Alawite minority sect, an off-shoot of Shiite Islam.
The threat comes just two days after a U.N. team investigating human rights abuses in Syria accused anti-Assad militants of hiding among the civilian population, triggering strikes by government artillery and the air force.
The Britain-based Syrian Observatory for Human Rights, the activist group which reported the rebel ultimatum on Saturday, said such an attack by rebels could force thousands of Christians from their homes.
Russia's foreign minister, meanwhile, said that Moscow would welcome any country's offer of a safe haven to Assad, but underlined that Moscow itself has no intention of giving him shelter if he steps down.
Sergei Lavrov also said that Syria has consolidated its chemical weapons into one or two locations to protect them from a rebel onslaught. Russia, which has military advisers training Syria's armed forces, has kept close watch over Damascus's chemical arsenal, Lavrov added.
Syria refuses to confirm or deny if it has chemical weapons but is believed to have nerve agents as well as mustard gas. It also possesses Scud missiles capable of delivering them.
Concerns over the arsenal have escalated as the Assad regime suffers losses on the battlefield. U.S. intelligence officials have said it may be readying chemical weapons and could be desperate enough to use them. Both Israel and the U.S. have also expressed concerns the weapons could fall into militant hands if the regime crumbles.
Syria's conflict started 21 months ago as an uprising against Assad, whose family has ruled the country for four decades. But the bloody crackdown that followed led rebels to take up arms, and the ensuing fighting transformed into a civil war. According to activists, more than 40,000 people have been killed since March 2011.
Christians, who make up about 10 percent of Syria's population, say they are particularly vulnerable to the violence sweeping the country of 22 million people. They are fearful that Syria will become another Iraq, with Christians caught in the crossfire between rival Islamic groups.
Clashes between troops and rebels in the central city of Homs, Syria's third largest, have already displaced tens of thousands of Christians, most of whom either fled to the relatively safe coastal areas or to neighboring Lebanon.
Rami Abdul-Rahman, who heads the Observatory, said some Christians and Alawites have also left Hama province in the past several days to escape violence. He said some of them found shelter in the coastal city of Tartus.
In Damascus, the new head of the Greek Orthodox Church of Antioch said that Christians in Syria had deep roots in the country and were not part of the conflict. Speaking to reporters in the capital, Patriarch John X. Yazigi, urged rival factions to negotiate a settlement.
Violence continued elsewhere in the country on Saturday.
The Observatory said a car bomb went off in the Damascus neighborhood of Qaboun, killing at least five people and wounding others. A Syrian official in the capital confirmed the blast but had no immediate words on casualties.
Elsewhere, the Syrian army said in a statement carried on state-run TV that it had repelled a rebel attack on a military base that killed a regimental commander in the Damascus suburb of Chebaa.
And in Damascus, the state-run news agency SANA said gunmen assassinated Haider al-Sammoudi, a cameraman for the government's TV station. Several journalists working for state media have been assassinated over the past months.
In another development, 11 rebel groups said they have formed a new coalition, the Syrian Islamic Front.
A statement issued by the new group, dated Dec. 21 and posted on a militant website Saturday, described the group as "a comprehensive Islamic front that adopts Islam as a religion, doctrine, approach and conduct."
Several rebel groups have declared their own coalitions in Syria, including an "Islamic state" in the embattled northern city of Aleppo.
The statement said the new group will work to avoid differences or disputes with the other Islamic groups.
Syrian authorities meanwhile handed over to Beirut three Lebanese citizens who were killed last month in a clash with Syrian troops shortly after they crossed the border. Syria has so far returned 10 bodies to the Lebanese authorities and says it has no more.

Read More..

Egypt's vice president quits

CAIRO (AP) — Egypt's state TV says Vice President Mahmoud Mekki has resigned.
Mekki's Saturday resignation was announced with more than five hours to go of voting in the second and final phase of a referendum on a disputed, Islamist-backed constitution. Mekki, a career judge, has said he intends to quit once the charter is adopted. The new constitution eliminates the post of vice president.
However, a statement by Mekki read on state TV hinted that the motive of his hurried departure could be linked to the policies of Islamist President Mohammed Morsi.
He said he first submitted his resignation last month but events forced him to stay on.
"I have realized a while ago that the nature of politics don't suit my professional genesis as a judge," he wrote.

Read More..

Ex-Tunisian dictator's property goes under hammer

TUNIS, Tunisia (AP) — Tunisian authorities are putting property confiscated from ousted Tunisian dictator Zine El Abidine Ben Ali up for auction. That includes a pair of miniature gold sphinxes, a diamond-encrusted pen and a staggering 39 luxury cars.
Officials hope the sale, which was inaugurated by Tunisia's Prime Minister Hamadi Jebali in Tunis Saturday, will fetch some 20 million dinar ($12.9 million) for the state.
One of the rarities up for grabs is a super-pricy Mercedes that belonged to Ben Ali's nephew. Mohammed Lassaad Hamayed of Tunisia's confiscation committee calls the car "a handmade gem made of carbon fibers that costs more than €2 million ($2.6 million)."
He says "only Mohamed VI (the King of Morocco) has a similar one."
Ben Ali was ousted by a popular uprising in January 2011.

Read More..

Egypt's central bank governor quits

CAIRO (AP) — State television says Egypt's central bank governor has resigned.
Farouq el-Oqdah's resignation is the second such high profile move on Saturday. Earlier on the day, Vice President Mahmoud Mekki resigned, saying he realized that politics did not suit his professional background as a judge.
The brief TV report did not say why el-Oqdah quit, but it ends days of media speculations about his intentions. Islamist President Mohammed Morsi and his Prime Minister Hesham Kandil met with el-Oqdah earlier this week in what media reports said was an attempt to dissuade him from leaving.
His departure comes at a time when Egypt's pound has been losing value against the U.S. dollar and the postponement of a deal with the IMF for a much needed loan of $4.8 billion.

Read More..

"Fiscal cliff" turmoil could hit 100 million taxpayers: U.S. IRS

WASHINGTON (Reuters) - U.S. tax authorities warned on Wednesday that as many as 100 million taxpayers - far more than previously estimated - could face refund delays if lawmakers' "fiscal cliff" negotiations fail to fix the alternative minimum tax (AMT) before year-end.
The Internal Revenue Service said in a letter to lawmakers that it was raising its estimate on AMT impact from 60 million.
"It is becoming apparent that an even larger number of taxpayers - 80 to 100 million of the 150 million total returns expected to be filed - may be unable to file," IRS Acting Commissioner Steven Miller wrote.
The AMT is a levy designed to ensure that high-income taxpayers pay a minimum tax. Democrats and Republican typically agree to adjust the tax for inflation to prevent unintended taxpayers from being hit by it.
This year, however, its fate is tied to heated negotiations - primarily between President Barack Obama and House Speaker John Boehner - over future taxes and federal spending as they try to avoid the automatic tax increases and spending cuts known as the fiscal cliff.
The AMT fix for calculating 2012 income tax has broad bipartisan support, but so far been drowned out by the larger federal budget questions.
Without action soon to fix the AMT, there could be "lengthy delays of tax refunds and unexpectedly higher taxes for many taxpayers," Miller said.
The IRS needs congressional authority to update tax-filing software and forms so that Americans can start their tax returns next year. Inaction by Congress on the AMT has left IRS unsure which taxpayers will need to pay the AMT tax.
An IRS spokesman declined to comment on the agency's AMT preparations to date.
"Failure to act on the fiscal cliff will throw the 2013 tax filing season into chaos," Representative Sander Levin, a Michigan Democrat, said in a statement.
About 4 million taxpayers pay the AMT now because Congress routinely "patches" it for inflation to keep it from reaching down into middle-income tax brackets.
Without a patch for 2012, up to 33 million taxpayers will have to pay the AMT, according to IRS.
Obama's most recent offer to Republicans included a permanent AMT patch.
House Republicans plan to vote Thursday on a bill to address the fiscal cliff that also includes an AMT patch.

Read More..

What's on the table now in 'fiscal cliff' talks

An update on the latest offers on the table in negotiations to avert a year-end avalanche of federal tax increases and spending cuts known as the "fiscal cliff":
___
INCOME TAXES
House Speaker John Boehner would allow income tax rates to rise for people making more than $1 million per year and would hold rates where they are for everyone making less. The top rate on income exceeding $1 million would go from 35 percent to 39.6 percent.
President Barack Obama would freeze income tax rates for taxpayers making $400,000 or less and raise them for people making more.
The two sides are moving closer together. Previously, the Republican House leader opposed allowing any tax rates to go up; Obama wanted higher taxes for individual income above $200,000, or $250,000 for couples.
___
PAYROLL TAX
Obama has dropped his proposal to extend a temporary cut in Social Security payroll taxes paid by 163 million workers. Republicans want that tax to go back up.
Raising the payroll tax by 2 percentage points to its old level would cost a worker making $50,000 a year another $1,000 — or a little more than $19 per week — during 2013.
___
SOCIAL SECURITY
Obama is offering to reduce cost-of-living increases for Social Security recipients. Republicans have been seeking this as a key to long-term deficit reduction. But many congressional Democrats oppose it.
Government pensions and veterans' benefits would also get smaller cost-of-living increases.
In addition, taxpayers, especially low- and middle-income families, would pay more because of changes in the way that tax brackets are adjusted for inflation.
___
MEDICARE
Obama continues to reject Republicans' plan to raise the eligibility age for Medicare from 65 to 67. Boehner now says raising the eligibility age is not essential to a deal.
Obama wants to limit cuts in Medicare and other health care programs to about $400 billion over 10 years; Republicans want to overhaul Medicare to save even more money.
___
DEBT LIMIT
Obama wants a deal that would raise the amount the government is allowed to borrow to cover the next two years, to avoid another debt showdown with Congress until after the 2014 midterm elections.
Previously, Obama had demanded permanent authority to increase the debt ceiling without congressional approval. Republicans want Congress to be part of the decision-making process so they can demand budget-cutting in exchange for additional borrowing.
___
OTHER TAXES
Obama and Boehner both propose raising taxes on dividends and capital gains from 15 percent to 20 percent.
Both sides would reduce the number of deductions and exemptions that wealthy taxpayers can claim.
Obama would also let estate taxes revert to a 45 percent rate, after the first $3.5 million of an estate is exempted. Boehner backs a plan for a 35 percent rate and $5 million exemption.

Read More..

Swiss lender ZKB says three charged by U.S. authorities

(Reuters) - Swiss lender Zuercher Kantonalbank (ZKB) said two of its bankers and one former employee had been charged by U.S. authorities, which had accused them of helping U.S. clients avoid taxes.
The three were indicted over changes of conspiring with American clients to hide more than $420 million from the U.S. Internal Revenue Service, the U.S. Attorney's Office in Manhattan had said on Wednesday.
The indictment did not identify the bank concerned but named Stephan Fellmann, Otto Hueppi and Christof Reist, who it said were all former client advisers for the unnamed institution.
None of the bankers had been arrested, authorities said.
Banking secrecy is enshrined in Swiss law and tradition but has recently come under pressure as the United States and other nations have moved aggressively to tighten tax law enforcement and demand more openness and cooperation.
U.S. authorities are investigating at least 11 banks, including Julius Baer , Credit Suisse and other Swiss regional banks, along with UK-based HSBC Holdings and Israel's Hapoalim, Mizrahi-Tefahot Bank Ltd and Bank Leumi .
In February, Wegelin & Co, Switzerland's oldest private bank, was indicted.
UBS AG , the largest Swiss bank, in 2009 paid a $780 million fine as part of a settlement with U.S. authorities who charged the bank helped thousands of wealthy Americans hide billions of dollars in assets in secret Swiss accounts.
ZKB said in a statement it was cooperating with U.S. authorities. The bank said it could give no details about the employees due to the ongoing investigation and did not confirm what they had been changed with.
ZKB bankers Fellmann and Reist could not be reached for comment. Hueppi declined to comment.

Read More..

Swiss lender ZKB says three charged by U.S. authorities

(Reuters) - Swiss lender Zuercher Kantonalbank (ZKB) said two of its bankers and one former employee had been charged by U.S. authorities, which had accused them of helping U.S. clients avoid taxes.
The three were indicted over changes of conspiring with American clients to hide more than $420 million from the U.S. Internal Revenue Service, the U.S. Attorney's Office in Manhattan had said on Wednesday.
The indictment did not identify the bank concerned but named Stephan Fellmann, Otto Hueppi and Christof Reist, who it said were all former client advisers for the unnamed institution.
None of the bankers had been arrested, authorities said.
Banking secrecy is enshrined in Swiss law and tradition but has recently come under pressure as the United States and other nations have moved aggressively to tighten tax law enforcement and demand more openness and cooperation.
U.S. authorities are investigating at least 11 banks, including Julius Baer , Credit Suisse and other Swiss regional banks, along with UK-based HSBC Holdings and Israel's Hapoalim, Mizrahi-Tefahot Bank Ltd and Bank Leumi .
In February, Wegelin & Co, Switzerland's oldest private bank, was indicted.
UBS AG , the largest Swiss bank, in 2009 paid a $780 million fine as part of a settlement with U.S. authorities who charged the bank helped thousands of wealthy Americans hide billions of dollars in assets in secret Swiss accounts.
ZKB said in a statement it was cooperating with U.S. authorities. The bank said it could give no details about the employees due to the ongoing investigation and did not confirm what they had been changed with.
ZKB bankers Fellmann and Reist could not be reached for comment. Hueppi declined to comment.

Read More..

Swiss lender ZKB says three charged by U.S. authorities

(Reuters) - Swiss lender Zuercher Kantonalbank (ZKB) said two of its bankers and one former employee had been charged by U.S. authorities, which had accused them of helping U.S. clients avoid taxes.
The three were indicted over changes of conspiring with American clients to hide more than $420 million from the U.S. Internal Revenue Service, the U.S. Attorney's Office in Manhattan had said on Wednesday.
The indictment did not identify the bank concerned but named Stephan Fellmann, Otto Hueppi and Christof Reist, who it said were all former client advisers for the unnamed institution.
None of the bankers had been arrested, authorities said.
Banking secrecy is enshrined in Swiss law and tradition but has recently come under pressure as the United States and other nations have moved aggressively to tighten tax law enforcement and demand more openness and cooperation.
U.S. authorities are investigating at least 11 banks, including Julius Baer , Credit Suisse and other Swiss regional banks, along with UK-based HSBC Holdings and Israel's Hapoalim, Mizrahi-Tefahot Bank Ltd and Bank Leumi .
In February, Wegelin & Co, Switzerland's oldest private bank, was indicted.
UBS AG , the largest Swiss bank, in 2009 paid a $780 million fine as part of a settlement with U.S. authorities who charged the bank helped thousands of wealthy Americans hide billions of dollars in assets in secret Swiss accounts.
ZKB said in a statement it was cooperating with U.S. authorities. The bank said it could give no details about the employees due to the ongoing investigation and did not confirm what they had been changed with.
ZKB bankers Fellmann and Reist could not be reached for comment. Hueppi declined to comment.

Read More..