Mexico's vigilantes turn over 11 captors

Farmers in the mountains of Mexico are holding gang violence suspects in improvised jails. Source: AAP

FARMERS who have taken up arms against drug-gang violence in the mountains of southern Mexico have turned over 11 of 53 people they've been holding in improvised jails.

Bruno Placido, leader of the self-styled "self-defence" movement, described the 11 as the detainees accused by local residents of the most serious crimes, such as murder, kidnapping and extortion. He said they were turned over to state and federal officials.

The authorities will presumably weigh bringing charges against the detainees, but given that the suspects were taken and held with no legal authority, in some cases for weeks, any prosecution might prove difficult.

The government of the Pacific coast state of Guerrero, where the vigilante movement sprang up after a series of kidnappings in early January, said that Placido's group had agreed to turn over "the first 20" detainees, implying that more would eventually follow.

But Placido said an assembly of residents in the township of Ayutla would determine the next step.

The movement has spread to about a dozen towns, with farmers wearing ski masks and bearing old hunting rifles and shotguns setting up roadside checkpoints to ask passing motorists for identification. The IDs are checked against handwritten lists of "bad guys" that the movement wanted to detain.

At an assembly of townspeople last week, the 53 detainees were paraded before local residents and plans were announced to bring charges against them and try them before a similar town assembly, with no clear provisions for what kind of defence they would be allowed to mount.

That drew sharp criticism from human rights officials and activists, who said the farmers movement was taking the law into its own hands and could ride roughshod over the rights of the accused.

The situation grew more complicated when local media said the vigilantes might be trying to detain activists from other political groups, and tensions rose between the vigilantes and the more established "community police" that operates in dozens of Guerrero towns. The community police are better regulated and partially recognised under state law.

State and federal authorities have so far tolerated the movement, despite the fact that its members have turned back government human rights officials seeking to check on the detainees condition.

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Assange urges leak of US drone rules

Julian Assange has condemned Obama's green light to kill American citizens conspiring with al-Qaeda. Source: AAP

WIKILEAKS founder Julian Assange has urged US officials to leak secret documents on drone strikes, saying that the broad discretion to kill citizens shows a "collapse" in the American system.

Assange, who has angered US officials by releasing thousands of secret memos, used a rare US television appearance to condemn President Barack Obama's controversial green light to kill American citizens who conspire with al-Qaeda.

"I can't see a greater collapse when the executive can kill its own citizens arbitrarily, at will, in secret, without any of the decision-making becoming public," Assange told the HBO talk show Real Time with Bill Maher.

"That's why we need organisations like WikiLeaks. I encourage anyone in the White House who has access to those rules and procedures, work them on over to us. We'll keep you secret and reveal it to the public."

Assange spoke to host Bill Maher, a supporter of WikiLeaks, by video link from Ecuador's embassy in London, where he has been holed up since June to avoid extradition to Sweden. Britain has refused him safe passage to Ecuador.

Swedish authorities say they want to question Assange over allegations of sex crimes. The former computer hacker says he fears Sweden will extradite him to the United States over WikiLeaks's massive release of sensitive documents.

Bradley Manning, a young army intelligence analyst in Iraq, was arrested in May 2010 over suspicions he handed diplomatic correspondence and other data to the website. He faces life in prison if convicted by a military tribunal.

NBC News published an unclassified document by the Justice Department this week indicating that senior al-Qaeda operators may be lawfully killed, even if they are US citizens and are not shown to be actively plotting an attack.

The Obama administration called strikes legal, ethical and "wise," and vowed to provide lawmakers with access to secret documents that outline the legal justifications for drone strikes.

Human rights groups voiced outrage in September 2011 when a US drone strike in Yemen killed radical preacher Anwar al-Awlaki and Samir Khan, editor of an al-Qaeda magazine. Both were US citizens who had never been charged with a crime.

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Greens say 'dud' mining tax can be fixed

The Australian Greens say Labor's minerals resource rent tax has turned out a dud. Source: AAP

THE Australian Greens have declared Labor's mining tax a dud.

Greens lower house MP Adam Bandt said if it's not fixed before the May budget, there could be cuts to welfare and there won't enough funds for education reform.

"It's now clear that Labor's mining tax is a dud," he told reporters in Canberra.

The federal government on Friday revealed the 30 per cent minerals resource rent tax (MRRT) on the super-profits of iron ore and coal miners raised just $126 million in its first six months.

It was projected to generate revenue of $2 billion by the end of 2012/13.

Greens leader Christine Milne said the MRRT rate should be lifted to 40 per cent, loopholes allowing mining companies to be reimbursed for increased royalties paid to state governments must be closed and generous accelerated depreciation provisions removed.

She said those three measures could raise $26 billion over the next four years.

"It's time that we fixed this tax so we actually raise money from the big mining companies," she told reporters in Canberra.

The government says the MRRT revenue is being hit by lower commodity prices and a high Australian dollar.

Senator Milne said while commodities prices were down they were still at historic levels.

"Unfortunately Tony Abbott and Wayne Swan and the prime minister are too afraid of Gina Rinehart, Clive Palmer et al to actually take them on," she said.

Mr Bandt plans to introduce a bill to parliament on Monday to remove the royalties loophole.

"If there's any silver from today's announcement by the treasurer, it's that he has opened the door to Labor getting behind the Greens push to fix the mining tax," he said.

Greens senator Richard Di Natale said the revenue result was "hugely disappointing".

"It's a long way short of the government's projections and many billions of dollars short of the original Treasury-backed mining tax," he told Sky News.

"How are we going to pay for the things that we need in this country?"

Senator Di Natale said the low revenue was the result of a watering down of the original resources tax proposed by former prime minister Kevin Rudd.

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More delays cause Sundance share plunge

SHARES in Africa-focused iron ore hopeful Sundance Resources plunged almost 12 per cent after it revealed yet another delay in the drawn out takeover by its Chinese suitor.

The National Development and Reform Commission (NDRC) in China on Thursday extended its provisional approval for Hanlong's acquisition by six months to July 30.

The extension was granted on condition that Hanlong enter into an agreement with a Chinese corporation "with sufficient capability" to undertake the Mbalam project in Cameroon with Hanlong.

Sundance on Friday said the Hanlong offer remained its best option, despite further delays.

"The simple fact is that no superior offer has emerged and the market share price has not approached the Hanlong bid," the company said in a statement.

"In those circumstances, the Hanlong bid remains, in the absence of a superior offer, the board's recommendation."

Hanlong Group has proposed a $1.4 billion takeover of Sundance.

Shares in Sundance reached a five-month low when they resumed trading on Friday, closing down 11.76 per cent, ro four cents, at 30 cents.

This compares with Hanlong's 45 cents offer price, which itself is down from the Chinese group's original offer at 57 cents a share made over a year ago.

Mine Life senior Resources analyst Gavin Wendt said the market was half expecting another delay.

"It's another kick in the guts for Sundance," Mr Wendt said.

"It looks like it's going to go one for another six months and that's if you're being optimistic."

He said the long protracted process was a farce.

"The Chinese have been so non committal about it all. It's no surprise that there's further delays.

"It doesn't reflect well on the Chinese and the way they're treating our corporate guidelines."

Funding in the order of $5 billion is needed to develop the mine in Cameroon and associated port and rail infrastructure.

Sundance shares had been suspended from trade since January 30 as Hanlong sought an extension of its provisional approval from the NDRC.

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Obeid brother 'knew nothing about deals'

WHEN Paul Obeid, son of former Labor powerbroker Eddie Obeid, was asked by a Sydney corruption inquiry whether his younger brother might have been a conduit for inside information relating to a coal mining deal in the Hunter, he laughed.

"No, not Gerard. Gerard would have been the driver," he scoffed on Wednesday.

Now Gerard has taken the stand at the Independent Commission Against Corruption (ICAC) and confirmed that his role in the family business was to ferry his brothers about.

The ICAC is investigating whether former NSW mining minister Ian Macdonald rigged a 2008 tender process for coal exploration licences in the Bylong Valley, and whether fellow ex-minister Eddie Obeid and his family gained substantial financial benefit from it.

Under questioning from counsel assisting the commissioner, Geoffrey Watson SC, Gerard Obeid said on Thursday that he was not aware of any information shared by Mr Macdonald with the Obeid family relating to coal exploration licences in the Valley.

"I suggest that you did know that Macdonald, in cahoots with your family, was doing these favours," Mr Watson said, prompting a denial from the witness.

Gerard Obeid was unable to answer several questions relating to his family's accounts and businesses.

The Obeid family trust loaned him $2.5 million for his house but he could not explain where the funds came from, first venturing that the money "was in the bank", then offering that perhaps "the tooth fairy" helped pay for his house.

"I get the impression you really have no idea," Commissioner David Ipp QC said.

"Absolutely I don't," the witness responded.

Asked by barrister Graham Turnbull who usually drove the Obeid brothers to and fro, Gerard Obeid said, "Me."

"Would it be true to say that your principal function was as a gofer?" Mr Turnbull asked.

"Yes," Gerard Obeid replied.

His brother Damien Obeid also took the stand on Thursday, testifying that he had talked his family into buying land at Mount Penny and had been "shocked" to discover there was coal underneath and a mine could be operating nearby within five or 10 years.

"It was actually an 'oh my God moment'," he said.

"I think people who do live near coal mines will tell you that it's not a very nice experience ... I thought, 'Oh, what have I done.'"

The inquiry will continue on Monday.

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Jemima Khan 'demoralised' by Assange

SOCIALITE Jemima Khan, once a high-profile supporter of the whistle-blowing website, has warned WikiLeaks founder Julian Assange that he risks falling from a "hero" to the Australian L. Ron Hubbard, expecting his supporters to follow him "unquestioningly, in blinkered, cultish devotion".

Khan added her journey with Assange has taken her from "admiration to demoralisation".

The associate editor of Britain's New Statesman, Khan said in a blog for the magazine that the Australian's "noble cause" does not trump the right of two women to have their sexual assault claims heard in a Swedish court.

She defended her decision to put up bail money for Assange following his arrest, saying she did it so he would be released while awaiting trial and not so he could avoid the allegations.

She said: "The problem is that WikiLeaks - whose mission statement was "to produce ... a more just society ... based upon truth" - has been guilty of the same obfuscation and misinformation as those it sought to expose, while its supporters are expected to follow, unquestioningly, in blinkered, cultish devotion.

"I have seen flashes of Assange's charm, brilliance and insightfulness - but I have also seen how instantaneous rock-star status has the power to make even the most clear-headed idealist feel that they are above the law and exempt from criticism.

"We all want a hero. After WikiLeaks released the infamous Collateral Murder video in 2010, showing US troops gunning down a dozen civilians in Iraq, I jokingly asked if Assange was the new Jason Bourne, on the run and persecuted by the state.

"It would be a tragedy if a man who has done so much good were to end up tolerating only disciples and unwavering devotion, more like an Australian L Ron Hubbard."

Hubbard, a pulp fiction writer, was the founder of the Church of Scientology.

Assange was granted political asylum by the Ecuadorean government last northern summer after he lost a long battle against extradition to Sweden.

He has been holed up inside Ecuador's London embassy for nearly eight months.

He recently hit out at a documentary about the beginnings of his organisation as a "massive propaganda attack".

Khan, who was an executive producer for WikiLeaks, We Steal Secrets, said she explained to Assange that criticisms of the website needed to be included for it to be viewed as fair and balanced.

She said he replied: "If it's a fair film, it will be pro-Julian Assange."

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China radar-lock on Japan ship 'dangerous'

THE radar lock that a Chinese frigate put on a Japanese warship is "dangerous", Japan's Prime Minister Shinzo Abe says, as tensions in a territorial row heighten.

"It was a dangerous act that could have led to an unpredictable situation," Abe told parliament on Wednesday.

"It is extremely regrettable. We strongly ask for their self-restraint in order to avoid an unnecessary escalation."

Abe's comments come a day after his defence minister announced weapon-targeting radar had been directed at the Japanese vessel in international waters of the East China Sea last week.

The move marks the first time the two nations' navies have locked horns in a dispute that has some commentators warning about a possible armed conflict.

US State Department spokeswoman Victoria Nuland said the US was "concerned".

"With regard to the reports of this particular lock-on incident, actions such as this escalate tensions and increase the risk of an incident or a miscalculation, and they could undermine peace, stability and economic growth in this vital region," she said.

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Flat retailing trend confirmed by data

RETAIL spending flattened out over the second half of 2012.

It's hardly a controversial observation, but figures from the Australian Bureau of Statistics (ABS) on Wednesday confirm the plateau extended through to the end of the year.

The figures won't surprise the Reserve Bank of Australia (RBA), which on Tuesday said "a return to the very strong growth (in consumer spending) of some years ago is unlikely".

The value of turnover in retail establishments - which excludes motor vehicle and fuel sellers but includes on-line sellers registered in Australia - fell by 0.2 per cent in December, after adjustment for regular seasonal variations.

It was the third small fall in a row; the first three-in-a-row since the summer of 1999-2000.

With these monthly estimates a fall could always be the result of changes in prices.

But the quarterly estimates which adjust for price changes suggest otherwise.

In real terms, turnover rose by an inconsequential 0.1 per cent in the three months ending December 31 after a 0.2 per cent fall in the previous quarter.

In other words, there was a fall in the volume of goods and services sold by retailers turnover over the second half of 2012.

This represents a rather abrupt halt after a rise of 2.8 per cent, well above the historical average, in the first half of the year.

There is more than one likely contributor to the pause.

One is slow employment growth, with the latest trend estimates from the ABS showing very slow monthly growth of 7,000, compared with a recent peak of more than 19,000 a month early last year.

Slower growth in jobs means slower growth in disposable income.

Another is the decline in housing construction, particularly in the volume of work done on alterations and additions, over the second half of 2011 and the first half of 2012.

Housing activity tends to feed into retail spending.

Then there is the emergence of more conservative spending habits, including a preference to reduce debt, among households since the global financial crisis that came to a head in 2008.

Each of these factors probably plays a role in the flat trend in retailing since mid-2012.

And, because they all still apply to a significant extent, it's unlikely that retailing will pick up strongly in the first half of 2013.

Even so, a firmer share market and signs of a rally in housing prices, along with a likely ongoing impact of recent interest rate cuts, suggest some scope for growth rather than the flatlining now evident in the data.

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Ulcer study could clear WA man of murder

A TRIO of West Australian Supreme Court judges have been urged not to delay a decision that could clear a man of a 30-year-old murder conviction, following new evidence supplied by Nobel Prize-winning scientist Barry Marshall.

Chris von Deutschburg was a teenager in 1983 when he was convicted of murdering 86-year-old Stavros Kakulas in a scuffle during a burglary at his home in Perth's seaside suburb of Scarborough.

Von Deutschburg, then 19, received a life sentence on the basis Mr Kakulas died of a bleeding duodenal ulcer, seven days after the crime, which was said to have been brought on by the stress of the home invasion.

Last year, then state attorney-general Christian Porter referred the case to WA's Court of Appeal, after Professor Marshall wrote to the State Solicitor's Office saying, based on his prize-winning research, von Deutschburg could not be guilty.

On Tuesday in the appeal court, Justices Carmel McLure, Robert Mazza and Michael Buss were urged to consider the new evidence and make a decision quickly on von Deutschburg's fate.

"This matter has caused a great deal of stress for the appellant and as you would appreciate, he is keen to get this resolved as soon as possible," said Sam Vandongen SC, appearing for von Deutschburg.

The judges have vowed to make a decision as quickly as they are able.

Prof Marshall, along with Nobel Prize-winning colleague Robin Warren, received worldwide accolades in 2005 after proving that bacteria, rather than sress, caused stomach ulcers.

He acted as a human guinea pig, downing a bacterial brew that made him very ill, but gave new hope of treatment for millions of ulcer sufferers.

The discovery was also a lifeline to von Deutschburg, who immediately believed Prof Marshall's evidence could clear him of murder.

His bid for acquittal started in 2005, more than 20 years after Mr Kakulas suffered bruising and fractured ribs during the burglary and then died of a bleeding ulcer in hospital a week later.

"There is no likelihood that his (Mr Kakulas') injuries either worsened or contributed to the duodenal ulcer in question," Prof Marshall wrote in his petition on behalf of von Deutschburg.

The expert said his opinion did not depend on when duodenal ulcer began - either before or after the assault on June 1, 1983.

"Persons with duodenal ulcer disease have ulcers coming and going throughout their life," Prof Marshall said.

"The injuries sustained by Mr Kakulas did not contribute to the development, or accelerate the development of his duodenal ulcer."

WA's Director of Public Prosecutions, Joe McGrath SC, appeared as the respondent to the appeal in the brief hearing.

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Kashmir girl band splits after fatwa

AN all-girl teenage rock band from Indian-administered Kashmir has split after the region's top Muslim cleric declared their music to be "un-Islamic".

Pragaash, a three-piece group whose members are still in high school, had been the target of an online hate campaign ever since winning a battle of the bands contest in December.

But they have called its quits after the Grand Mufti of Jammu and Kashmir, Bashiruddin Ahmad, branded them as "indecent" and issued a fatwa calling for them to disband.

"After the fatwa the girls decided to quit and disband," Adnan Mattoo, the band's manager, said on Tuesday.

The mother of one of the girls confirmed her daughter had decided to leave the band, saying she was staying with relatives outside Kashmir until the fuss died down.

"My daughter had been depressed and irritable so we decided to send her away to another city for some time," said the mother, who did not want to give her name.

The comments by the grand mufti have been widely criticised, with the state's Chief Minister, Omar Abdullah, among those calling on the band not to be intimidated into giving up.

Kashmir is India's only Muslim-majority state and hardline Islamists have a reputation for trying to impose Islamic law.

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Claims children murdered at Salvo home

CLAIMS that children were murdered at a Salvation Army children's home in eastern Melbourne decades ago should be investigated more thoroughly, an abuse survivor has told an inquiry.

Brian Cherrie told a Victorian parliamentary inquiry there were numerous claims that children were beaten badly at the Salvation Army home in Bayswater and never seen again.

Mr Cherrie, who was 10 and 11 when he was raped by a manager at the Salvation Army boys' home in Box Hill, said homicide police should reopen their investigation into the claim.

"The homicide squad was at the Bayswater home approximately two years ago and they dug holes with a backhoe. They were looking for bodies. They didn't find anything," he told the inquiry on Monday.

"They relied on the memories from decades ago of various people."

Mr Cherrie said police had closed the investigation, but there were other techniques they could use to search for bodies.

"I'm not convinced these investigations have been exhausted and they should be," he said.

"There are more modern ways the police forces can look for bodies, like by ground thermal imaging and cadaver dogs."

Mr Cherrie said a list of names of children who had allegedly disappeared had been handed to the secretariat of the Family and Community Development Committee, which is conducting the inquiry.

He said it would not be hard to find out whether any had disappeared.

"They would not have signed off their wardships," he said.

"Most of them were state wards. If there's one name that doesn't come up in bank records or tax records or whatever, you know they've vanished from the face of the earth.

"People are quite ardent that kids were beaten that bad and never seen again, it should be followed through.

"I don't believe these things have been followed through fully.

"I really don't have confidence in that."

The inquiry into religious and non-governmental organisations' handling of sex abuse against children resumes on February 15 in Geelong.

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Motorists set to pay more at the pump

MOTORISTS can expect further price rises at the petrol bowser over the next couple of weeks, reflecting rising world oil prices, Commonwealth Securities says.

The Australian Institute of Petroleum in its latest report on Monday said the national unleaded fuel price rose by an average 2.1 cents per litre in the past week to 144 cents.

The average metropolitan price rose by 2.4 cents per litre to 142.6 cents, while the regional price increased by 1.3 cents to 146.7 cents.

CommSec chief economist Craig James expects a further two to three cent price rise over the next fortnight as a result of a wholesale prices rising over three cents a litre to a two-month high.

He said world oil prices are being pushed up due to improving sentiment among investors about the global outlook.

"The bottom line is that motorists will end up paying more to fill up," Mr James said in a client note.

He said while higher petrol prices potentially mean a lift in consumer price inflation, the Reserve Bank would remain comfortable about monetary policy given the absence of other price pressures at present.

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Sri Lanka rescues 138 on sinking boat

SRI Lanka's navy rescued more than 100 Bangladeshi and Myanmar nationals from a sinking fishing vessel off the island's eastern coast, a spokesman said.

One passenger was found dead on Sunday while many of the 138 plucked from the boat were dehydrated, he added, but it was not immediately clear where the vessel was headed or whether they were asylum seekers.

"We sent three ships for the rescue at a location 80km off the eastern coast of Akkaraipattu," navy spokesman Kosala Warnakulasuriya said.

"Some have been admitted to a local hospital. Others are being taken to Colombo."

The early-morning rescue came amid stepped up naval patrols to check Sri Lankan fishing boats taking would-be illegal immigrants to Australia.

Sri Lankan authorities arrested more than 1,200 people trying to leave the island illegally last year.

Many of those who make the perilous journey pay up to $US3,000 ($A2,890) for a place on trawlers run by people-smugglers.

Warnakulasuriya said the passengers rescued on Sunday identified themselves as Bangladeshi and Myanmar nationals.

"We have not been able to get much information about their port of origin or the destination, but we have asked the embassies of the two countries to help us with translations," he said.

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US, Europe stock surge runs on

STOCK markets in the United States and Europe have been building up steam for six months and now seem oblivious to still fragile economic growth, but analysts say this does not yet amount to another financial bubble.

Markets tend to anticipate trends and most of the signals emerging from the main stock markets in the world are pointing towards "go".

Since the middle of July, the main Dow Jones index on Wall Street has risen by 10.0 per cent.

Driven by prospects or hopes of economic recovery, it has broken through the 14,000 point level to reach its highest level since November 2007.

In Europe, the main index in Germany, the Dax, has surged by about 20 per cent since July and is at the highest level since the beginning of 2008.

The French CAC 40 index has made similar gains but is around levels reached in the middle of 2011.

"The market is in the process of making a long-term change of direction," said Bertrand Lamille, director of investment management at B*Capital, a branch of BNP Paribas bank.

"The downward movement for stocks, which has been underway since 2007, is over."

The rise of the markets may be seen more as a process of making up lost ground, given that they had fallen heavily owing first to the financial crisis, and then to the eurozone debt crisis.

Since the president of the European Central Bank Mario Draghi made a watershed speech in July underpinning eurozone countries in debt trouble and therefore also the integrity of the eurozone, "the rise is logical since the prospect of the eurozone breaking up, played up by Anglo-Saxon (British and North American) investors, has faded," said an investment manager at Barclays Bourse, Renaud Murail.

On the sovereign debt market, Spain and Italy no longer have to offer unsustainably high interest rates to borrow as was the case in 2012.

Yields on their debt bonds have fallen sharply in the last few months.

At brokers Aurel BGC, economist Jean-Louis Mourier commented: "The rally is broadly justified if one bears in mind the fact that the big risks which hung over the market have been dissipated, in a context in which there is plenty of cash for investment."

Shares are the big gainers, together with the bonds of countries in a weak situation, from the policies of leading central banks which have flooded the markets with hundreds of billions of dollars and euros to avert a crisis of confidence and to stimulate economic activity.

Analysts at PrimeView said that "the abundance of liquidity throughout the world... should now flow towards shares rather towards bonds," noting that low-risk investments such US of German sovereign bonds generate no real return for investors.

Commodity and raw material markets have not yet been affected by any speculative surge. The rise of the price of oil is being contained by plentiful supplies.

Demand for industrial metals is subdued owing to weakness of demand for finished products, and gold, a haven in times of risk aversion, could now be in competition with risky assets.

The surge of stock prices could seem to be a paradox given that growth in the US has scarcely got going and is struggling to gain any momentum in the eurozone.

Mourier warned that "the uncertainties which weigh on future growth justify a pause, or at least that the rate of the rise should slow down."

He also noted that there remained a risk that the eurozone could plunge back in to crisis.

But so far, analysts do not see a risk of a stock market bubble.

"There is no such risk, as things stand," Murail said.

This analysis appears to be borne out by the ratio of the value of leading stock indices to company profits which is still far below the long-term average.

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