Autonomy founder fires back at HP after news of DOJ inquiry



Autonomy founder Mike Lynch



(Credit:
HP)


Autonomy founder and former CEO Mike Lynch is firing back at Hewlett-Packard after the release of HP's annual report with the U.S. Securities and Exchange Commission today. The report states that the federal government opened an inquiry into HP's acquisition of Autonomy in November and hints that Autonomy's accounting is partially to blame.

"It is extremely disappointing that HP has again failed to provide a detailed calculation of its $5 billion write-down of Autonomy, or publish any explanation of the serious allegations it has made against the former management team, in its annual report filing today," Lynch said in an e-mailed statement. "Furthermore, it is now less clear how much of the $5 billion write-down is in fact being attributed to the alleged accounting issues, and how much to other changes in business performance and earnings projections."

HP acquired the enterprise software company in August 2011 for $11.1 billion, or 11 times its annual earnings. Since the purchase, controversy, lawsuits, and an $8.8 billion charge against HP's earnings have ensued.

HP and Lynch have traded arguments in the press over who deserves the blame for Autonomy's subpar performance. In its fourth-quarter earnings release last month, HP said it had discovered "extensive evidence" of fraudulent accounting and failed disclosures on Autonomy's part leading up to the sale. Consequently, Lynch set up a Web site that denies HP's charges and says HP mishandled the company after acquiring it.

"We also do not understand why HP is raising these issues now given that Autonomy reported into the HP Finance team from the day the acquisition completed in October 2011, there was an extensive due diligence process and Autonomy was audited as a public company for many years," Lynch said today. "We also note the statement in HP's annual report that it received confirmation from the U.S. Department of Justice on 21 November 2012 (the day after HP's first public statement), that the Department had opened an investigation. We can confirm that we have as yet had no contact from any regulatory authority. We will co-operate with any investigation and look forward to the opportunity to explain our position."


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Sotomayor refuses to block morning-after pill rule

WASHINGTON Supreme Court Justice Sonia Sotomayor on Wednesday denied a request to block part of the federal health care law that requires employee health-care plans to provide insurance coverage for the morning-after pill and similar emergency contraception pills.

Hobby Lobby Stores and a sister company, Mardel Inc., sued the government, claiming the mandate violates the religious beliefs of its owners.

In an opinion, Sotomayor said the stores fail to satisfy the demanding legal standard for blocking the requirement on an emergency basis. She said the companies may continue their challenge to the regulations in the lower courts.

Company officials say they must decide whether to violate their faith or face a daily $1.3 million fine beginning Jan. 1 if they ignore the law.

Attorneys for the government have said the drugs do not cause abortions and that the U.S. has a compelling interest in mandating insurance coverage for them.

In ruling against the companies last month, U.S. District Judge Joe Heaton said churches and other religious organizations have been granted constitutional protection from the birth-control provisions but that "Hobby Lobby and Mardel are not religious organizations."

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Okla. Senator Could Prevent Gun Control Changes












If there's one person most likely to keep new gun-control measures from passing Congress swiftly, it's Sen. Tom Coburn.


Conservatives revere the Oklahoma Republican for his fiscal hawkishness and regular reports on government waste. But he's also a staunch gun-rights advocate, and he's shown a willingness to obstruct even popular legislation, something in the Senate that a single member can easily accomplish.


That mixture could make Coburn the biggest threat to quick passage of new gun-control laws in the aftermath of the Newtown, Conn., shooting that has prompted even pro-gun NRA-member lawmakers like Sen. Joe Manchin, D-W.Va., to endorse a new look at how access to the most powerful weapons can be limited.


Coburn's office did not respond to multiple requests to discuss the current push for gun legislation. But given his record, it's hard to imagine Coburn agreeing to a major, new proposal without some fuss.


The last time Congress considered a major gun law -- one with broad support -- Coburn held it up, proving that the details of gun control are sticky when a conservative senator raises unpopular objections, especially a senator who's joked that it's too bad he can't carry a gun on the Senate floor.


After the Virginia Tech massacre in 2007, Congress heard similar pleadings for new gun limits, some of them similarly to those being heard now. When it came to light that Seung-Hui Cho, the mentally disturbed 23-year-old who opened fire on campus, passed a background check despite mental-health records indicating he was a suicide threat, a push began to include such records in determining whether a person should be able to buy a gun.




Rep. Carolyn McCarthy, D-N.Y., a longtime gun-control advocate whose husband was killed in a mass shooting on the Long Island Rail Road in 1996, introduced a widely supported bill to do just that. The NRA backed her National Instant Check System Improvement Amendments Act of 2007.


But Coburn didn't. The senator blocked action on the bill, citing concerns over patient privacy, limited gun access for veterans, and the cost of updating the background-check system,


In blocking that bill, Coburn pointed to a government study noting that 140,000 veterans had been referred to the background-check registry since 1998 without their knowledge.


"I am certainly understanding of the fact that some veterans could be debilitated to the point that such cataloguing is necessary, but we should ensure this process does not entangle the vast majority of our combat veterans who simply seek to readjust to normal life at the conclusion of their tours. I am troubled by the prospect of veterans refusing necessary treatment and the benefits they are entitled to. As I'm sure you would agree we cannot allow any stigma to be associated with mental healthcare or treatment of Traumatic Brain Injury," Coburn wrote to acting Veterans Secretary Gordon Mansfield.


Coburn succeeded in changing the legislation, negotiating a set of tweaks that shaved $100 million over five years, made it easier for prohibited gun owners to restore their gun rights by petitioning the government, and notifying veterans that if they abdicated control of their finances they would be added to the gun database. The bill passed and President Bush signed it in January 2008.






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Mental illness, poverty haunted Afghan policewoman who killed American


KABUL (Reuters) - The Afghan policewoman suspected of killing a U.S. contractor at police headquarters in Kabul suffered from mental illness and was driven to suicidal despair by poverty, her children told Reuters on Wednesday.


The woman was identified by authorities as Narges Rezaeimomenabad, a 40-year-old grandmother and mother of three who moved here from Iran 10 years ago and married an Afghan man.


On Monday morning, she loaded a pistol in a bathroom at the police compound, hid it in her long scarf and shot an American police trainer, apparently becoming the first Afghan woman to carry out such an attack.


Narges also tried to shoot police officials after killing the American. Luckily for them, her pistol jammed. Her husband is also under investigation.


Her son Sayed, 16, and daughter Fatima, 13, described how they tried to call their parents 100 times after news broke of the shooting, then waited in vain for them to come home.


They recalled Narges's severe mood swings, and how at times she beat them and even pulled out a knife. But the children said she was consistent in bemoaning poverty.


"She was usually complaining about poverty. She was complaining to my father about our conditions. She was saying that my father was poor," Sayid said in an interview in their damp, cold two-room cement house.


On the floor beside him were his mother's prescriptions and a thick plastic bag filled with pills she tried to swallow to end the misery about a month ago. On another occasion, she cut her wrist with a razor, Sayed said.


"My father was usually calm and sometimes would say that she was guilty too because it wasn't a forced marriage. They fell in love and got married."


There was no sign in their neighborhood of the billions of dollars of Western aid that have poured into Afghanistan since the ouster of the Taliban in 2001, or of government investment.


RAW SEWAGE, STAGNANT WATER, DIRT ROADS


The lane outside their home stank of raw sewage.


Dirty, stagnant water filled holes in dirt roads nearby, where children in tattered clothes played and butchers stood by cow's hooves in shops choked by dust.


Afghanistan is one of the world's poorest nations, with a third of its 30 million residents living under the poverty line.


The sole distractions from the daily grind appeared to be a deck of playing cards and a compact disc with songs from Iranian pop singers, scattered on the floor of a room where Narges would lock herself in and weep, or sit in silence.


At times, Narges would try to focus on building her children's confidence, telling them to be guided by the Muslim holy book, the Koran, to tackle life's problems.


Sayed and Fatima said she never spoke badly of the U.S. presence in Afghanistan or of President Hamid Karzai's government.


Neighbor Mohammad Ismail Kohistani was dumbfounded to hear on the radio that Afghan officials were combing Narges' phone records to try to determine whether al Qaeda or the Taliban could have brainwashed her into carrying out a mission.


But he was acutely aware of her mental problems and often heard her scream at her husband, whose low-level job in the crime investigation unit of the police brought home little cash.


Kohistani, who operates a small sewing shop with battered machines, never imagined his neighbor could be accused of a high-profile attack that raised new questions about the direction of an unpopular war.


"I became very depressed and sad," said Kohistani, sitting on the floor few feet from a tiny wood-burning stove in Narges's home, alongside family photographs and a police training manual.


Fatima would often seek refuge in Kohistani's house when her mother's behavior became unbearable. "She did not hate us, but usually she was angry and would not talk to us," said Fatima, her eyes moist with tears.


Nevertheless, she missed her mother. The children were staying with a cousin.


"I ask the government to free my mother, otherwise our future will be destroyed," said Fatima.


Officials described it as another "insider shooting", in which Afghan forces turn on Westerners they are meant to be working with to stabilize the country. There have been over 52 such attacks so far this year.


The shooting at the police headquarters may have alarmed Afghanistan's Western allies. But some Afghans have grown numb to the violence.


Kohistani's 70-year-old father Omara Khan, who sports a white beard, sat twirling prayer beads beneath a photograph of Narges in a black veil beside one of her husband.


Asked what he thought of the attack, he laughed.


"This is common in Afghanistan," said Khan, who lived through decades of upheaval, including the 10-year Soviet occupation and a civil war that destroyed half of Kabul and killed some 50,000 civilians.


"People are killed every day."


(Editing by Ron Popeski)



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FairPrice extends price freeze on housebrand rice






SINGAPORE: Supermarket chain NTUC FairPrice has said it will continue to hold prices of all its 10 housebrand Thai and Vietnamese rice till end of March 2013.

The announcement on Thursday came amid talks that rice-exporting nations may raise prices.

There are also threats of natural disasters affecting rice-producing countries.

FairPrice CEO, Seah Kian Peng, said FairPrice was founded with the mission of moderating the cost of living for the community.

As food makes up over 20 per cent of an average household's expenses, it is important that daily essentials, like rice, are affordably priced.

Prices of all FairPrice housebrand rice from Thailand and Vietnam have been held steady since November 2011.

- CNA/al



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What Mac to be 'Made in USA'? Maybe Mini, perhaps Pro?



Mini or Pro?



(Credit:
Apple)


Watchers of Apple and the industry no doubt recall Tim Cook's comments in a recent interview about bringing some
Mac production back to the U.S. in the coming year. But which Mac might the Apple CEO be talking about?


DigiTimes thinks it knows. A new report from the Asia-based blog cites "sources from the upstream supply chain" as saying that it'll be the
Mac Mini. Keep in mind, however, that DigiTimes' reports aren't always reliable. And then there's this: Earlier in the month, Fortune's Philip Elmer-Dewitt laid out several reasons why he thinks it'll be the Mac Pro.


Elmer-Dewitt notes that Cook mentioned a $100 million investment and that a Bloomberg source, Dan Luria, estimated that such a sum would add up to a factory employing about 200 workers and turning out about a million units of whatever product per year. (Luria studies factory operations as a labor economist at Michigan Manufacturing Technology Center in Plymouth, Mich.)


"Only the Mac Pro and Mini sell fewer than 1 million per year," Elmer-Dewitt says. And here's why he casts his lot with the Pro: It's heavier than the Mini, and thus more expensive to ship from overseas; Pros are, he says, "easier to build and customize than any other Apple product;" and Cook has indicated that Apple will be making a new Pro in the coming year.


So which Mac will bear the "Made In USA" label? That, of course, remains to be seen. It's interesting, though, to play armchair CEO/COO and begin pondering such logistical questions.


(Via MacRumors)



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Christmas Tornadoes Tear Across South













A nasty Christmastime storm system spawned blizzard conditions in some states and at least 15 reported tornadoes in the South, damaging homes, taking out power lines and dangerously snarling holiday travel.


Severe weather swept across the United States during the Christmas holiday, bringing tornadoes and intense thunderstorms to the Gulf Coast, while dumping heavy snow and freezing rain on the Southern Plains.


At least 15 tornadoes were reported today from Texas to Alabama, putting this storm system potentially on track to be one of the largest Christmas day tornado outbreaks on record.


One large tornado was reported in Mobile, Ala., where there are about 19,000 customers without power and 23,429 statewide, according to Alabama Power. Kerry Burns, a Mobile resident originally from Boston, said the storm "sounded like a freight train."


Some buildings in the area, including some churches and a local high school, were reportedly damaged. Ray Uballe, another Mobile resident, said his dad was shaken up.


"He was in his apartment," Uballe said. "He said it sounded like an airplane and then the door flung open and then there was just debris flying."


Douglas Mark Nix, president of the Infirmary Health System, said one of their Mobile hospitals lost power and sustained damage. There were no early reports of injuries to staff or patients.


"We are operating now on generator power," he said. "We do not have substantial damage but we do have a number of windows out and we have some ceiling tiles down, throughout the facility at the main hospital.


"We can run for at least two weeks but I saw power crews out all over the city so I fully expect power to be restored within the next day or so," Nix added.






Melinda Martinez/The Daily Town Talk/AP Photo















Winter Weather Causes Holiday Travel Problems Watch Video





At least eight states were issued blizzard warnings today, as the storms made highways dangerously slick heading into one of the busiest travel days of the year.


Oklahoma got about 7 inches of snow all over the state making for treacherous road conditions. ABC News affiliate KOCO-TV in Oklahoma City said the weather was being blamed for a 21-vehicle wreck on Interstate 40, but no one was seriously injured.


Ice accumulation in Arkansas bent trees and power lines, leaving at least 50,000 customers across the state without power. About 10 inches of snow fell on Fayetteville, Ark.


The storms, which first wreaked havoc on the West Coast before moving east, are being blamed for at least one death in Texas.


Investigators in the Houston area told ABC state KTRK-TV in Houston that a young man was trying to move a downed tree that was blocking the roadway when another one snapped and fell on top of him. He was later pronounced dead at a hopsital.


The last time a number of tornadoes hit the Gulf Coast area around Christmas Day was in 2009, when 22 tornadoes struck on Christmas Eve morning, National Weather Service spokesman Chris Vaccaro told ABC News over email.


The deadliest Christmastime tornado outbreak on record was Dec. 24 to 26, 1982, when 29 tornadoes in Oklahoma, Missouri, Arkansas, Tennessee and Mississippi killed three people and injured 32.


The last killer tornado around Christmas, Vaccaro said, was a Christmas Eve EF4 in Tennessee in 1988, which killed one person and injured seven. EF4 tornadoes can produce winds up to 200 mph.


No official word yet on the strength of the string of tornadoes reported today.


While some were preparing for a Christmas feast, others were hunkered down.


More than 180 flights nationwide were canceled by midday, according to the flight tracker FlightAware.com. More than half were canceled by American Airlines and its regional affiliate, American Eagle.


The storm system is expected to continue east into Georgia and the Carolinas Wednesday and could potentially spawn more tornadoes, according to the National Weather Service.


ABC News' Matt Gutman, Max Golembo and ABC News Radio contributed to this report.



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Egypt approves constitution drafted by Mursi allies


CAIRO (Reuters) - Egyptian voters overwhelmingly approved a constitution drafted by President Mohamed Mursi's allies, results announced on Tuesday showed, proving that liberals, leftists and Christians have been powerless to halt the march of Islamists in power.


Final elections commission figures showed the constitution adopted with 63.8 percent of the vote in the referendum held over two days this month, giving Mursi's Islamists their third straight electoral victory since veteran autocrat Hosni Mubarak was toppled in a 2011 revolution.


Opposition groups had taken to the streets to block what they see as a move to ram through a charter that mixes politics and religion dangerously and ignores the rights of minorities.


Mursi says the text - Egypt's first constitution since Mubarak's fall - offers enough protection for minorities, and adopting it quickly is necessary to end two years of turmoil and political uncertainty that has wrecked the economy.


"I hope all national powers will now start working together now to build a new Egypt," Murad Ali, a senior official in the Muslim Brotherhood's Freedom and Justice Party, told Reuters.


"I see this as the best constitution in Egypt's history."


In a sign that weeks of unrest have taken a further toll on the economy, the government ordered new restrictions on foreign currency apparently designed to prevent capital flight. Leaving or entering with more than $10,000 cash is now banned.


Two years since waves of unrest broke out across the Middle East and North Africa - sweeping away long-entrenched rulers in Tunisia, Libya and Yemen as well as Egypt - well-organized Islamist parties have emerged as the main beneficiaries.


Urban secularists and liberals who were behind the revolts complain that their success has been hijacked.


"We need a better constitution," said Khaled Dawood, an opposition spokesman. "It does not represent all Egyptians."


Mursi's opponents say the new constitution could allow clerics to intervene in lawmaking, while offering scant protections to minorities and women. Mursi dismisses those criticisms, and many Egyptians are fed up with street protest movements that have prevented a return to normality.


Immediately after the announcement, a small group of protesters set tires on fire and blocked traffic near the central Tahrir square, the cradle of Egypt's uprising, but there were no immediate signs of violence or major demonstrations.


Washington, which provides billions of dollars a year in military and other support for Egypt and regards it as a pillar of security in the Middle East, called on Egyptian politicians to bridge divisions and on all sides to reject violence.


"President Mursi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes the urgent need to bridge divisions," State Department spokesman Patrick Ventrell said. He noted that many Egyptians had voiced "significant concerns" over the constitutional process.


WORSENING ECONOMY


The government says its opponents are worsening the economic crisis by prolonging political upheaval. It has pledged to impose unpopular tax increases and spending cuts to win a loan package from the International Monetary Fund.


The ban on travelling with more than $10,000 in cash followed a pledge by the central bank to take unspecified measures to protect Egyptian banks. Some Egyptians have begun withdrawing their savings in fear of more restrictions.


"I am not going to put any more money in the bank and neither will many of the people I know," said Ayman Osama, father of two young children.


He said he had taken out the equivalent of about $16,000 from his account this week and planned to withdraw more, adding that he had also told his wife to buy more gold jewellery.


The "yes" vote paves the way for a parliamentary election in about two months, setting the stage for another battle between surging Islamists and their fractious opponents.


The final result, announced by the election commission, matched - to the last decimal place - an earlier unofficial tally announced by Mursi's Muslim Brotherhood.


But the opposition said it was disappointed - it had appealed for the result to be amended to reflect what it described as major vote violations during the two-round vote.


Officials said there were no violations serious enough to change the result significantly. "We have seriously investigated all the complaints," said judge Samir Abu el-Matti of the Supreme Election Committee. The final turnout was 32.9 percent.


SENSE OF CRISIS


The referendum has sharpened painful divisions in the Arab world's most populous nation and a growing atmosphere of crisis has gripped Egypt's polarized society.


Anxiety about the economy deepened this week when Standard and Poor's cut Egypt's long-term credit rating. Prime Minister Hisham Kandil told the nation of 83 million on Tuesday the government was committed to fixing the economy.


"The main goals that the government is working towards now is plugging the budget deficit, and working on increasing growth to boost employment rates, curb inflation, and increase the competitiveness of Egyptian exports," he said.


The referendum follows Islamist victories in parliamentary and presidential elections, representing a decisive shift in a country at the heart of the Arab world where Mursi's Muslim Brotherhood was suppressed for generations by military rulers.


However, secularist and liberal opposition members hope they can organize better in time for the next parliamentary vote.


Hossam El-Din Ali, a 35-year-old newspaper vendor in central Cairo, said he agreed the new constitution would help bring some political stability but like many others he feared the possible economic austerity measures lying ahead.


"People don't want higher prices. People are upset about this," he said. "There is recession, things are not moving. But I am wishing for the best, God willing."


(Additional reporting by Patrick Werr, Tamim Elyan, Ahmed Tolba and Marwa Awad; Writing by Maria Golovnina)



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Thousands flee Malaysia floods






KUALA LUMPUR: Floods triggered by torrential monsoon rains in Malaysia forced almost 14,000 people to flee their homes and seek shelter at relief centres, the official Bernama news agency said.

Rain showers which coincided with high tide flooded hundreds of homes in three northeastern states -- Terengganu, Pahang and Kelantan -- with some 13,746 people being housed at evacuation centres, it said amid forecasts of more rain.

Bernama said the flood situation was deteriorating as the number of evacuees continued to rise and some major roads in Pahang were closed as rivers burst their banks.

Muhammad Helmi Abdullah, the meteorological department's weather forecast director, warned that there could be more rain in Terengganu, Pahang and southern Johor state in the next few days.

"We expect intermittent rain to heavy showers in (some parts of) the states," he told AFP.

Muhammad Helmi said the northeast monsoon season would last until March and the affected states could experience at least three more "heavy rain" episodes.

Meanwhile a 36-year-old woman drowned after she slipped and fell into a rain-swollen river in Terengganu state on Tuesday while fishing in a water-logged area, Bernama said.

- AFP/ck



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Stuxnet attacks Iran again, reports say




An Iranian news agency says the country successfully fended off yet another attack by the Stuxnet worm, according to reports.


The cyberattack targeted a power plant and other sites in southern Iran over the fall, the BBC and the Associated Press reported today.


Discovered in June 2010, Stuxnet is believed to be the first malware targeted specifically at critical infrastructure systems. It's thought to have been designed to shut down centrifuges at Iran's Natanz uranium enrichment plant, where stoppages and other problems reportedly occurred around that time. The sophisticated worm spreads via USB drives and through four previously unknown holes, known as zero-day vulnerabilities, in Windows.


Stuxnet is just one of several versions of malware aimed at Middle Eastern countries in the past two and a half years. Along Stuxnet, there have arisen Duqu, Gauss, Mahdi, Flame, Wiper, and Shamoon.


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