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CVC Capital, Itausa interested in Brazil’s Petrobras LPG distribution unit: sources

FILE PHOTO: A man walks in front of the Brazil's state-run Petrobras oil company headquarters in Rio de Janeiro
FILE PHOTO: A man walks in front of the Brazil's state-run Petrobras oil company headquarters in Rio de Janeiro, Brazil December 5, 2018. REUTERS/Sergio Moraes/File photo

April 12, 2019

By Tatiana Bautzer and Carolina Mandl

SAO PAULO (Reuters) – CVC Capital Partners and Brazilian investment firm Itausa Investimentos Itau SA are among the groups interested in an LPG distribution unit put on the block by Brazil’s Petrobras, two sources with knowledge of the matter said.

Petroleo Brasileiro SA, as the state-controlled oil company is formally known, expects interested parties to sign confidentiality agreements, the first step to participate in the sale process of Liquigas Distribuidora SA, by April 19.

Petrobras had agreed in 2016 to sell Liquigas Distribuidora to local rival Ultrapar Participacoes SA in a 2.8 billion-real ($720 million) deal, that was blocked by Brazil’s antitrust watchdog Cade in February 2018.

Financial investors are now the main target of the new process, since a sale to one of them would avoid new antitrust hurdles.

Ultrapar is again interested in participating in the sale, Brazilian newspaper O Estado de S. Paulo reported on Friday. But this time, Ultrapar would have to join a consortium according to new rules designed by Petrobras and its adviser, Banco Santander Brasil SA, to avoid new antitrust problems.

Petrobras, CVC, Itausa and Ultrapar did not immediately comment on the matter.

The rules, revised earlier this week, demand from rivals with more than 10 percent of market share in the Brazilian LPG distribution market cannot have a stake in the consortium that is higher than 30 percent of Liquigas’ revenue.

Liquigas is Brazil’s largest LPG distribution unit, operating in the whole country with 4,800 authorized re-sellers.

(Reporting by Tatiana Bautzer)

Source: OANN

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Job boom to outweigh soft patch as Bank of Canada mulls rate moves

FILE PHOTO: Bank of Canada Governor Stephen Poloz speaks during a news conference in Ottawa
FILE PHOTO: Bank of Canada Governor Stephen Poloz speaks during a news conference in Ottawa, Ontario, Canada, January 9, 2019. REUTERS/Chris Wattie/File Photo

March 14, 2019

By Fergal Smith and Julie Gordon

TORONTO/OTTAWA (Reuters) – The Bank of Canada is unlikely to cut interest rates to support a flagging economy as long as job growth continues at a robust pace, an analysis of the central bank’s response to past divergences in economic data suggests.

The economy could also get a boost from a revival in consumer spending, with next week’s federal budget expected to offer incentives that may ease the burden of debt-laden consumers.

The Canadian economy has become sluggish, with trade uncertainty weighing on business investment and a housing downturn hitting consumer spending, prompting speculation the Bank of Canada could cut rates this year.

But the pace of job growth has historically been a better signal for easing than variations in economic growth, Refinitiv data analyzed by Reuters shows. On the last two occasions that job growth and the strength of the economy diverged, in 2006 and 2012, the Bank of Canada chose not to cut rates.

(GRAPHIC: Canada GDP, jobs and Bank of Canada – https://tmsnrt.rs/2UH2ynG)

If gross domestic product is expanding at a slow pace “but jobs are blasting ahead, then yes, the bank is unlikely to cut rates,” said Royce Mendes, a senior economist with CIBC Capital Markets, cautioning that job data can be volatile.

Dismal economic growth in the fourth quarter prompted the Bank of Canada – which has hiked rates five times since July 2017 – to warn about “increased uncertainty,” even as job gains topped 55,000 in four of the last six months.

MORE JOBS, RISING SALARIES

The more dovish tone has led the market to price in about a 30 percent chance of a rate cut this year, whereas before it had been pricing in a potential hike. Canada’s 10-year bond yield on Tuesday hit its lowest level since June 2017, dropping below the 1.75 percent level of the central bank’s benchmark interest rate.

But experts say the strong employment numbers suggest Canada is facing a temporary soft patch, making rate cuts a risky response that would leave the Bank of Canada little room to maneuver in the case of a real economic shock.

“The jobs data throws into question whether it is really that serious of a soft patch,” said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York.

“This might be a three-month soft patch,” he added. “If you spend all your ammunition on a slow patch then there’s nothing else.”

In addition to the economy churning out jobs, there are signs wages are finally rising, something the central bank has been watching closely.

And Canadians may find their wallets padded further, with the potential for Prime Minister Justin Trudeau’s government to introduce measures next week on child care, pharmaceutical care and skills training in the ruling Liberals’ final budget ahead of an October election.

“The bank is rightly cautious because even with the job gains that we’ve had, disposable income growth is really not that supportive,” said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.

“It may change if we get something in the budget – tax rates down, transfers up. Then, disposable income might look a little better.”

(Reporting by Fergal Smith in Toronto and Julie Gordon in Ottawa; Editing by Paul Simao)

Source: OANN

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Iran says reaches understanding with Iraq to develop two oilfields

FILE PHOTO: Iranian President Hassan Rouhani shake hands with Iraq's Prime Minister Adel Abdul Mahdi during a news conference in Tehran
FILE PHOTO: Iranian President Hassan Rouhani shake hands with Iraq's Prime Minister Adel Abdul Mahdi during a news conference in Tehran, Iran, April 6, 2019. Official Iranian President website/Handout via REUTERS/File Photo

April 7, 2019

GENEVA (Reuters) – Iran and Iraq have reached an understanding about developing two oilfields on their mutual border, Iran’s oil minister was quoted saying on Sunday, a day after Iranian President Hassan Rouhani called for increased trade between the two countries.

The focus of the understanding is the development of the Naft Shahr and Khorramshahr oilfields, Oil Minister Bijan Zanganeh said according to a report on Iran’s oil ministry website on Sunday, without giving any details of the plan.

Rouhani called on Saturday for Iran and Iraq to expand their gas, electricity and oil dealings and boost bilateral trade to $20 billion, state TV reported, despite difficulties caused by U.S. sanctions against Tehran.

“We hope that our plans to expand trade volume to $20 billion will be realized within the next few months or years,” Rouhani said, after a meeting with visiting Iraqi Prime Minister Adel Abdul Mahdi, in remarks carried by state television.

Iranian media reports have put the current level of trade at about $12 billion.

Zanganeh had in February criticized Iraq for not agreeing to develop shared oilfields because of sanctions fears, according to comments published by the oil ministry’s news site SHANA.

However the energy industries in the two countries have close links and Iraq relies heavily on Iranian gas to feed its power stations.

Iraq imports roughly 1.5 billion standard cubic feet of gas per day from Iran via pipelines in the south and east of the country. Zanganeh noted Iraq owes Iran approximately $1 billion for gas supplied in the past. 

“Given the lack of development in the petrochemicals and gas industries in Iraq, there is a bright perspective for cooperation between the two countries,” Zanganeh said, again without giving any further details.

There was no immediate comment from the Iraqi oil ministry on Sunday about the oilfields understanding.

After a trip to Iraq last month by Rouhani and Zanganeh, Iran had agreed to help Iraq with technical and engineering services in the oil sector.

Iran also agreed to help with the development of mutual fields, rebuilding old refineries, and helping build a network for gas delivery, Amir Hossein Zamaninia, Iran’s deputy oil minister for trade and international affairs, said on Sunday, according to SHANA, the new site of the Iranian oil ministry.

U.S President Donald Trump reimposed sanctions on Iran’s energy exports in November, citing its nuclear program and meddling in the Middle East, but has granted waivers to several buyers to meet consumer energy needs.

In March the United States granted Iraq a 90-day waiver exempting it from sanctions on buying energy from Iran.

(Reporting by Babak Dehghanpisheh; Additional reporting by Ahmed Rasheed in Baghdad; Editing by David Holmes)

Source: OANN

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Attorney Avenatti faces new criminal charges in California

Federal prosecutors said Thursday that attorney Michael Avenatti has been charged in a 36-count federal indictment in Southern California.

Details of the case were scheduled to be made public at a midmorning news conference by U.S. Attorney Nick Hanna and the Internal Revenue Service, Hanna's office said in a statement to news outlets.

The new charges follow Avenatti's arrest in New York last month for allegedly trying to shake down Nike for up to $25 million and on two counts of wire and bank fraud from Southern California, where his firm is based. Avenatti has said he expects to be cleared.

The attorney is best known for representing porn actress Stormy Daniels in lawsuits against President Donald Trump.

The charges are the latest major blow to a career that took off last year when Avenatti represented Daniels in her lawsuit to break a confidentiality agreement with Trump to stay mum about an affair they allegedly had.

Avenatti became one of Trump's leading adversaries, attacking him on cable news programs and Twitter. At one point, Avenatti even considered challenging Trump in 2020.

But back home in California, his business practices had come under scrutiny from the IRS and a former law partner who was owed $14 million by Avenatti and the Eagan Avenatti firm, which filed for bankruptcy.

Source: Fox News National

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House panel chairman subpoenas ex-White House counsel McGahn

FILE PHOTO: White House Counsel McGahn listens during the confirmation hearing for U.S. Supreme Court nominee Kavanaugh on Capitol Hill in Washington
FILE PHOTO: White House Counsel Don McGahn listens during the confirmation hearing for U.S. Supreme Court nominee judge Brett Kavanaugh on Capitol Hill in Washington, U.S., September 4, 2018. REUTERS/Chris Wattie/File Photo

April 22, 2019

WASHINGTON (Reuters) – U.S. House Judiciary Committee Chairman Jerry Nadler on Monday subpoenaed former White House counsel Don McGahn to testify before the panel in its investigation of possible obstruction of justice by President Donald Trump.

In a statement, Nadler said the committee had asked for documents from McGahn by May 7 and for him to testify on May 21. Special Counsel Robert Mueller’s report said Trump asked McGahn to fire Mueller.

“Mr. McGahn is a critical witness to many of the alleged instances of obstruction of justice and other misconduct described in the Mueller report,” Nadler said.

An attorney for McGahn was not immediately available for comment.

(Reporting by Eric Beech and David Morgan; Editing by Mohammad Zargham)

Source: OANN

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Chinese visit to Italy seeks closer ties, stirs suspicions

At the heart of Chinese Premier Xi Jingping's visit to Rome beginning Thursday is a key prize: A deal to make Italy the first major democracy to join China's ambitious Belt and Road infrastructure project that has raised concerns about Beijing's growing economic clout.

Italian Premier Giuseppe Conte has pledged to sign the memorandum of understanding on Saturday, despite objections from U.S. allies and doubts within the coalition government that it could give China greater political influence in Europe and the West.

But Xi's visit, at the invitation of Italian President Sergio Mattarella, also aims more broadly at deepening trade and cultural ties. Conte has even suggested that Italy could play a role in easing tensions over trade between China and the United States.

Mattarella told the Chinese stat-run news agency Xinhua Thursday that the visit is an expression of the "solidity of the bond and mutual respect" between the two countries, which will celebrate 50 years of diplomatic relations in 2020.

Xi's visit includes a meeting with Mattarella and a wreath-laying at Italy's monument for unknown soldiers on Friday. On Saturday, Conte will sign the infrastructure deal and Xi will visit the Sicilian city of Palermo before departing Sunday.

Here's a look what's at stake with the visit.

____

INFRASTRUCTURE

Italy's signature on the ambitious "Belt and Road" infrastructure-building project would give legitimacy to a project that envisions overland and maritime routes connecting China with Europe, reviving the old Silk Road traveled by Marco Polo in the Middle Ages. The initiative encompasses about 60 countries through Asia and Africa to Europe.

Conte has dismissed concerns that signing the framework with China would downgrade Italy's strategic ties with Europe and the United States, saying its focus was more commercial and on encouraging trade with China.

The White House has criticized the deal, saying it is weighted in China's interests. Italy's European allies have declined to sign a joint declaration on the "Belt and Road," saying it lacks standards on financing and transparency.

While full details have not been released, it includes collaboration and investments in the northern Italian ports of Genoa and Trieste as well as roads, railways, airports and telecommunications.

"Our two countries may harness our historical and cultural bonds forged through the ancient Silk Road," Xi wrote in the Corriere della Sera newspaper this week.

____

TECHNOLOGY

Key Italian officials have insisted that the issue of expanding Chinese company Huawei's 5G network into Italy is not part of the "Belt and Road" memorandum.

The Chinese 5-G network is viewed with suspicion, mainly by the U.S. government, which says it could give Chinese security services a backdoor to snoop on consumers. The issue is a major source of tension between China and the U.S.

While European countries have balked at banning Huawei outright from participating in the creation of the new 5G networks, one key member of Italy's government, Interior Minister Matteo Salvini, shares the concerns, saying nothing in the memorandum can threaten Italians' data.

____

CULTURE

Ahead of the visit, Xi noted that China and Italy are the countries with the largest number of UNESCO world heritage sites, sharing both cultural and tourism resources. He suggested that the two countries could form "twinning relationships" between world heritage sites and cooperate on art exhibitions, TV and movie production, language course and travel.

Mattarella said that the heritage of Italy and China both "arouse admiration around the world" and could help develop the economy.

The two countries are expected to soon announce the pairing of the Langhe, Roero and Monferrato wine region in Piedmont with China's Honghe Hani rice terraces, while Verona and Hangzhou are to establish sister-city relationships.

Culture and tourism officials will be meeting Saturday on the sidelines of Xi's visit.

____

TRADE

Conte said he aims to rebalance trade with China. Currently 1 billion Chinese consumers provide a market for 13 billion euros (nearly $15 billion) in Italian goods, while Italy's 60 million people buy 60 billion euros in Chinese-made products each year.

Italy's undersecretary for economic development, Michele Geraci, says Italy lags its European partners in trade with China by 15 or 20 years, and that the aim is to increase Italian exports to China by 7 billion euros, putting Italy in line with France.

Mattarella said that Italy sees China "not only as an economic partner of prime importance, but also as a driver of global trade," and a market for Italian technology and expertise in areas like environmental protection, food security, health services and machinery. He called for "open and transparent" trade with both countries acting "on an equal basis."

Chinese Vice Foreign Minister Wang Chao said the "Belt and Road" deal would be beneficial for both countries' economic development and trade.

However, Francois Godement, a specialist in Chinese politics at the Paris Institute of Political Studies, called such claims "bogus," because Chinese companies already have significant investments in Italy.

_____

Joe McDonald in Beijing contributed to this report.

Source: Fox News World

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South Korea first to roll out 5G services, beating U.S. and China

People take photographs during a launching ceremony for SK Telecom's 5G service, in Seoul
People take photographs during a launching ceremony for SK Telecom's 5G service, in Seoul, South Korea, April 3, 2019. REUTERS/Kim Hong-Ji

April 3, 2019

By Ju-min Park

SEOUL (Reuters) – South Korea will become the first country to commercially launch fifth-generation (5G) services on Friday as it rolls out the latest wireless technology with Samsung Electronics’ new 5G-enabled smartphone Galaxy S10.

With one of the world’s top smartphone penetration rates, South Korea is in a race with China, the United States and Japan to market 5G, hoping the technology will spur breakthrough in fields such as smart cities and autonomous cars, and drive up its economic growth that slowed to a six-year low in 2018.

“It is meaningful that South Korean telecom companies are providing services and networks meeting South Korean customers’ high standard in speed and picture quality,” Ryu Young-sang, executive vice president at the country’s top mobile carrier SK Telecom, said on Wednesday.

5G will change the landscape of the gaming industry as it allows games streamed with minimal delay to be played on smartphones, Ryu added.

The technology can offer 20-times faster data speeds than 4G long-term evolution (LTE) networks and better support for artificial intelligence and virtual reality with low latency.

Sometimes it can offer 100-times faster speeds.

South Korean carriers have spent billions on campaigns marketing 5G and, on Wednesday, SK Telecom showed off K-pop stars and an Olympic gold medalist as its first 5G customers.

SK Telecom is working with its memory-chip making affiliate SK Hynix to build a highly digitized and connected factory powered by 5G technology, Ryu said.

The operator expects about 1 million 5G customers by end-2019. It has a total of 27 million users.

Smaller rival KT Corp is set to offer cheaper plans than its LTE service, with unlimited data and 4-year installments to buy 5G devices.

Samsung was the first to unwrap a 5G phone in February when it unveiled the Galaxy S10 5G and a nearly $2,000 folding smartphone, putting the world’s top smartphone maker by volume in pole position in the 5G race, some analysts say.

Smaller local rival LG Electronics plans to release its 5G smartphone in South Korea later this month.

In the United States, carrier Verizon plans to launch its 5G network in two cities on April 11.

SECURITY CONCERNS

While security concerns over 5G networks using telecom equipment made by China’s Huawei have marred the buildup to the release of these services, South Korean telcos have tried to shrug them off.

“I don’t think we have a security issue in South Korea,” Park Jin-hyo, head of SK Telecom’s information and communication tech research center, told reporters.

He added that the company uses advanced technology to block eavesdropping or hacking into 5G networks.

Among South Korea’s top three telecom operators, SK Telecom and KT Corp do not use Huawei equipment for 5G. Smaller carrier LG Uplus uses Huawei gear.

But SK Telecom officials said it was likely there will be an open auction for network equipment makers including Huawei if South Korea needs more base stations for higher frequencies.

(Reporting by Ju-min Park; Editing by Sayantani Ghosh and Himani Sarkar)

Source: OANN

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Tiger woods celebrates after winning the 2019 Masters
FILE PHOTO: Golf – Masters – Augusta National Golf Club – Augusta, Georgia, U.S. – April 14, 2019 – Tiger Woods of the U.S. celebrates on the 18th hole after winning the 2019 Masters. REUTERS/Lucy Nicholson

April 26, 2019

Tiger Woods is sending a message that he thinks he still has enough left, emotionally and physically, to win three more major championships to tie Jack Nicklaus’ record 18 titles.

Speaking to GolfTV in his first sit-down interview since the Masters, Woods said he has taken some time off since his victory at Augusta National, which still doesn’t feel real.

“Honestly, it’s hard to believe,” Woods said. “I was texting one of my good friends last night … that I couldn’t believe that I won the tournament. That it really hasn’t sunk in. I haven’t started doing anything. I’ve just been laying there. And every now and again, I’ll look over there on the couch and there’s the jacket.”

That’s the fifth green jacket for the 43-year-old Woods, who hadn’t won a major tournament since the 2008 U.S. Open. Along the way, four back surgeries, a divorce and other personal issues derailed him.

He said he has been spending time with his children – daughter Sam, 11, and son Charlie, 10 – who weren’t born when their father was the most dominant golfer on the planet.

“They never knew golf to be a good thing in my life and only the only thing they remember is that it brought this incredible amount of pain to their dad and they don’t want to ever want to see their dad in pain,” Woods said. “And so to now have them see this side of it, the side that I’ve experienced for so many years of my life, but I had a battle to get back to this point, it feels good.”

He said he hopes – maybe expects — they’ll see this side again.

And no one will take Woods for granted at the PGA Championship at Bethpage Black Course on Long Island, N.Y., which starts May 16.

Woods said he’ll be ready for a course he already conquered once in a major: the 2002 U.S. Open.

“I’m doing all the visual stuff, but I haven’t put in the physical work yet. But it’s probably coming this weekend,” he said.

Before Woods encountered health and personal problems, it was expected that topping Nicklaus’ major mark was “when” and not “if.” Then the certainty went away, but Woods thought he still had a chance.

“I always thought it was possible, if I had everything go my way. It took him an entire career to get to 18, so now that I’ve had another extension to my career – one that I didn’t think I had a couple of years ago – if I do things correctly and everything falls my way, yeah, it’s a possibility. I’m never going to say it’s not.

“Now I just need to have a lot of things go my way, and who’s to say that it will or will not happen? That’s what the future holds, I don’t know. The only thing I can promise you is this: that I will be prepared.”

–Field Level Media

Source: OANN

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Maria Butina, the Russian woman who was accused of being a secret agent for the Russian government, was sentenced to 18 months in prison Friday by a federal judge in Washington after pleading guilty last year to a conspiracy charge.

Butina, who has already served nine months behind bars, will get credit for time served and can possibly get credit for good behavior, the judge said. She will be removed from the U.S. promptly on completion of her time, the judge added, and returned to Russia.

MARIA BUTINA, ACCUSED RUSSIAN SPY, PLEADS GUILTY TO CONSPIRACY

An emotional and apologetic Butina said in court Friday she is “truly sorry” and regrets not registering as a foreign agent.

“I feel ashamed and embarrassed,” she said, adding that her “reputation is ruined.”

Butina has been jailed since her arrest in July 2018. She entered the court Friday wearing a dark green prison jumpsuit and spoke in clear English, with a slight Russian accent.

“Please accept my apologies,” Butina said.

Butina’s lawyer, Robert Driscoll, said after the sentencing they had hoped for a “better outcome,” but expressed a desire for Butina to be released to her family by the fall.

Prosecutors had claimed Butina used her contacts with the National Rifle Association and the National Prayer Breakfast to develop relationships with U.S. politicians and gather information for Russia.

Prosecutors also have said that Butina’s boyfriend, conservative political operative Paul Erickson, identified in court papers as “U.S. Person 1,” helped her establish ties with the NRA.

WHO IS MARIA BUTINA, THE RUSSIAN WOMAN ACCUSED OF SPYING ON US?

In their filings, prosecutors claim federal agents found Butina had contact information for people suspected of being employed by Russia’s Federal Security Services, or FSB, the successor intelligence agency to the KGB. Inside her home, they found notes referring to a potential job offer from the FSB, according to the documents.

Investigators recovered several emails and Twitter direct message conversations in which Butina referred to the need to keep her work secret and, in one instance, said it should be “incognito.” Prosecutors said Butina had contact with Russian intelligence officials and that the FBI photographed her dining with a diplomat suspected of being a Russian intelligence agent.

Fox News’ Jason Donner, Bill Mears, Greg Norman and the Associated Press contributed to this report.

Source: Fox News Politics

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An official Sri Lankan police Twitter account was deleted after it misidentified an American human rights activist as a suspect in the country’s Easter Sunday terrorist attacks.

On Thursday, police posted the names and photos of six people that they said were at-large suspects in the bombings that killed more than 250 people.

However, one of the names on the list was Muslim U.S. activist Amara Majeed, who quickly tweeted that she had been falsely identified.

“I have this morning been FALSELY identified by the Sri Lankan government as one of the ISIS terrorists that committed the Easter attacks in Sri Lanka. What a thing to wake up to!” she wrote.

SRI LANKA AUTHORITIES SAY EASTER ATTACK LEADER KILLED IN ONE OF NINE HOTEL BOMBINGS

She wrote in a follow-up tweet that the claim was “obviously completely false” and asked social media users to “please stop implicating and associating me with these horrific attacks.”

“And next time, be more diligent about releasing such information that has the potential to deeply violate someone’s family and community,” she continued.

Later, she wrote an update saying police apologized for wrongly mistaking her as a suspect.

Police said in a statement: “However, although one of the released images was identified as one Abdul Cader Fathima Khadhiya in the information provided by the CID, the CID has now informed that a) the individual whose image was labeled as Abdul Cader Fathima Khadiya is not in fact Abdul Cader Fathima Khadiya b) the individual pictured is not wanted for questioning c) Abdul Cader Fathima is the correct name of the suspect wanted by the CID.”

On Friday, the account, @SriLankaPolice2 was deleted with no explanation. Police did not release more information regarding the mistake.

Majeed, who founded “The Hijab Project” when she was 16 years old, told the Baltimore Sun that it was hurtful to be linked to the attacks.

“Sri Lanka is my motherland,” the Brown University student said. “It’s very painful to be associated with [the bombings].”

CLICK HERE FOR THE FOX NEWS APP

Mohamed Zahran, the suspected leader of the attacks which targeted six hotels and churches, killed himself in a suicide bombing at the Shangri-La hotel. Police also said they had arrested the second-in-command of the group, called National Towheed Jamaat. Catholic churches in Sri Lanka canceled all Sunday Masses until further notice over concerns that they remain a top target of Islamic State-linked extremists.

The Associated Press contributed to this report.

Source: Fox News World

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FILE PHOTO: Sri Lankan Special Task Force soldiers stand guard in front of a mosque as a Muslim man walks past him during the Friday prayers at a mosque, days after a string of suicide bomb attacks on Easter Sunday, in Colombo
FILE PHOTO: Sri Lankan Special Task Force soldiers stand guard in front of a mosque as a Muslim man walks past him during the Friday prayers at a mosque, five days after a string of suicide bomb attacks on Catholic churches and luxury hotels across the island on Easter Sunday, in Colombo, Sri Lanka April 26, 2019. REUTERS/Dinuka Liyanawatte/File Photo

April 26, 2019

By Tom Lasseter and Shri Navaratnam

KATTANKUDY, Sri Lanka (Reuters) – Mohamed Hashim Mohamed Zahran was 12 years old when he began his studies at the Jamiathul Falah Arabic College. He was a nobody, with no claim to scholarship other than ambition.

Zahran and his four brothers and sisters squeezed into a two-room house with their parents in a small seaside town in eastern Sri Lanka; their father was a poor man who sold packets of food on the street and had a reputation for being a petty thief.

“His father didn’t do much,” recalled the school’s vice principal, S.M. Aliyar, laughing out loud.

The boy surprised the school with his sharp mind. For three years, Zahran practiced memorizing the Koran. Next came his studies in Islamic law. But the more he learned, the more Zahran argued that his teachers were too liberal in their reading of the holy book.

“He was against our teaching and the way we interpreted the Koran – he wanted his radical Islam,” said Aliyar. “So we kicked him out.”

Aliyar, now 73 with a long white beard, remembers the day Zahran left in 2005. “His father came and asked, ‘Where can he go?’.”

The school would hear again of Mohamed Zahran. And the world now knows his name. The Sri Lankan government has identified him as the ringleader of a group that carried out a series of Easter Sunday suicide bombings in the country on April 21.

The blasts killed more than 250 people in churches and luxury hotels, one of the deadliest-ever such attacks in South Asia. There were nine suicide bombers who blew apart men, women and children as they sat to pray or ate breakfast.

Most of the attackers were well-educated and from wealthy families, with some having been abroad to study, according to Sri Lankan officials.

That description does not, however, fit their alleged leader, a man said to be in his early 30s, who authorities say died in the slaughter. Zahran was different.

INTELLIGENCE FAILINGS

Sri Lanka’s national leadership has come under heavy criticism for failing to heed warnings from Indian intelligence services – at least three in April alone – that an attack was pending. But Zahran’s path from provincial troublemaker to alleged jihadist mastermind was marked by years of missed or ignored signals that the man with a thick beard and paunch was dangerous.

His increasingly militant brand of Islam was allowed to grow inside a marginalized minority community – barely 10 percent of the country’s roughly 20 million people are Muslim – against a backdrop of a dysfunctional developing nation.

The top official at the nation’s defense ministry resigned on Thursday, saying that some institutions under his charge had failed.

For much of his adult life, Zahran, 33, courted controversy inside the Muslim community itself.

In the internet age, that problem did not stay local. Zahran released online videos calling for jihad and threatening bloodshed.

After the blasts, Islamic State claimed credit and posted a video of Zahran, clutching an assault rifle, standing before the group’s black flag and pledging allegiance to its leader.

The precise relationship between Zahran and Islamic State is not yet known. An official with India’s security services, who spoke on condition of anonymity, said that during a raid on a suspected Islamic State cell by the National Investigation Agency earlier this year officers found copies of Zahran’s videos. The operation was in the state of Tamil Nadu, just across a thin strait of ocean from Sri Lanka.

“LIKE A SPOILED CHILD”

Back in 2005, Zahran was looking to make his way in the world. His hometown of Kattankudy is some seven hours’ drive from Colombo on the other side of the island nation, past the countless palm trees, roadside Buddha statues, cashew hawkers and an occasional lumbering elephant in the bush. It is a town of about 40,000 people, a dot on the eastern coast with no clear future for an impoverished young man who’d just been expelled.

Zahran joined a mosque in 2006, the Dharul Athar, and gained a place on its management committee. But within three years they’d had a falling out.

“He wanted to speak more independently, without taking advice from elders,” said the mosque’s imam, or spiritual leader, M.T.M. Fawaz.

Also, the young man was more conservative, Fawaz said, objecting, for instance, to women wearing bangles or earrings.

“The rest of us come together as community leaders but Zahran wanted to speak for himself,” said Fawaz, a man with broad shoulders lounging with a group of friends in a back office of the mosque after evening prayers. “He was a black sheep who broke free.”

Mohamed Yusuf Mohamed Thaufeek, a friend who met Zahran at school and later became an adherent of his, said the problems revolved around Zahran’s habit of misquoting Islamic scriptures.

The mosque’s committee banned him from preaching for three months in 2009. Zahran stormed off.

“We treated him like a spoiled child, a very narrow-minded person who was always causing some trouble,” said the head of the committee, Mohamed Ismail Mohamed Naushad, a timber supplier who shook his head at the memory.

Now on his own, Zahran began to collect a group of followers who met in what Fawaz described as “a hut”.

At about that time, Zahran, then 23, married a young girl from a small town outside the capital of Colombo and brought his bride back to Kattankudy, according to his sister, Mathaniya.

“I didn’t have much of a connection with her – she was 14,” she said.

Despite being “a bit rough-edged”, Zahran was a skilled speaker and others his age were drawn to his speeches and Koranic lessons, said Thaufeek. He traveled the countryside at times, giving his version of religious instruction as he went.

Also, Zahran had found a popular target: the town’s Sufi population, who practice a form of Islam often described a mystical, but which to conservatives is heresy.

Tensions in the area went back some years. In 2004, there was a grenade attack on a Sufi mosque and in 2006 several homes of Sufis were set afire. Announcements boomed from surrounding mosques at the time calling for a Sufi spiritual leader to be killed, said Sahlan Khalil Rahman, secretary of a trust that oversees a group of Sufi mosques.

He blamed followers of the fundamentalist Wahhabi strain of Islam that some locals say became more popular after funding from Saudi Arabia, the birthplace of Wahhabism, flowed to mosques in Kattankudy.

It was, Rahman said, an effort “to convert Sufis into Wahhabis through this terrorism”. Rahman handed over a photograph album showing charred homes, bullet holes sprayed across an office wall and a shrine’s casket upended.

ONLINE RADICAL

It was an ideal backdrop for Zahran’s bellicose delivery and apparent sense of religious destiny.

He began holding rallies, bellowing insults through loudspeakers that reverberated inside the Sufis’ house of worship as they tried to pray.

In 2012, Zahran started a mosque of his own. The Sufis were alarmed and, Rahman said, passed on complaints to both local law enforcement and eventually national government offices. No action was taken.

The then-officer in charge of Kattankudy police, Ariyabandhu Wedagedara, said in a telephone interview that he couldn’t arrest people simply because of theological differences.

     “The problem at the time was between followers of different Islamic sects – Zahran was not a major troublemaker, but he and followers of other sects, including the Sufis, were at loggerheads,” Wedagedara said.

Zahran found another megaphone: the internet. His Facebook page was taken down after the bombings, but Muslims in the area said his video clips had previously achieved notoriety.

His speeches went from denouncing Sufis to “kafirs”, or non-believers, in general. Zahran’s sister, Mathaniya, said in an interview that she thought “his ideas became more radical from listening to Islamic State views on the Internet”.

In one undated video, Zahran, in a white tunic and standing in front of an image of flames, boomed in a loud voice: “You will not have time to pick up the remains of blown-up bodies. We’ll keep sending those insulting Allah to hell.”

“HARD TO TAKE”

Zahran spoke in Tamil, making his words available to young Muslims clicking on their cellphones in Kattankudy and other towns like it during a period when, in both 2014 and 2018, reports and images spread of Sinhalese Buddhists rioting against Muslims in Sri Lanka.

In 2017, Zahran’s confrontations boiled over. At a rally near a Sufi community, his followers came wielding swords. At least one man was hacked and hospitalized. The police arrested several people connected to Zahran, including his father and one of his brothers. Zahran slipped away from public view.

That December, the mosque Zahran founded released a public notice disowning him. Thaufeek, his friend from school, is now the head. He counted the places that Zahran had been driven away from – his school, the Dharul Athar mosque and then, “we ourselves kicked him out, which would have been hard for him to take”.

The next year, a group of Buddha statues was vandalized in the town of Mawanella, about five hours drive from Kattankudy. There, in the lush mountains of Sri Lanka’s interior, Zahran had taken up temporary residence.

“He was preaching to kill people,” said A.G.M. Anees, who has served as an imam at a small mosque in the area for a decade. “This is not Islam, this is violence.”

Zahran went into hiding once more.

On the Thursday morning before the Easter Sunday bombings, Zahran’s sister-in-law knocked on the door of a neighbor who did seamstress work near Kattankudy. She handed over a parcel of fabric and asked for it to be sewn into a tunic by the end of the day.

“She said she was going on a family trip,” said the neighbor, M.H. Sithi Nazlya.

Zahran’s sister says that her parents turned off their cellphones on the Friday. On Sunday, when she visited their home, they were gone.

She does not know if Zahran arranged for them to be taken somewhere safe. Or why he would have carried out the bombing.

But now in Kattankudy, and in many other places, people are talking about Mohamed Hashim Mohamed Zahran.

(Reporting by Tom Lasseter and Shri Navaratnam; Additional reporting by Sanjeev Miglani, Shihar Aneez and Alasdair Pal; Editing by John Chalmers and Alex Richardson)

Source: OANN

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