PPA to profit from K9 services

October 16, 2023 | 8:04 pm

THE PHILIPPINE Ports Authority (PPA) expects a return on investment from its K9 Academy in four years by deploying drug- and bomb-sniffing dogs to other government agencies and private institutions for a fee, its general manager said on Monday.

“Through this, we can sustain it (K9 Academy) without having to rely on an annual budget,” Mr. Santiago, speaking partly in Filipino, told One News PH about the P125-million K9 Academy opening in Pampanga early next year in cooperation with the Philippine Coast Guard (PCG).

It will be a training and breeding program that will produce the authority’s in-house K9 units instead of outsourcing them from third parties, which he touted as the first of its kind not just in the country but in Southeast Asia.

The PPA is expected to save up to P40 million of its annual budget allocated for outsourcing K9 units.

“Public fund is not wasted. The government even saves money through this program,” Mr. Santiago said, noting that the maintenance and food supply of the K9 units will be sourced from the program’s revenue.

With the deployment of K9 units in seaports proving effective in thwarting the smuggling of illegal drugs and explosives, the PCG is also developing K9 units that could detect agricultural contraband.

The K9 academy will house five organizations for training and service maintenance including the Canine Development Center, Canine School, Canine Breeding Center, Canine Hospital, and Kennel Management and Biosecurity.

Looking forward to the program, Ma. Bonissa V. Amodia-Ole, PCG K9 Force logistics officer, said: “We only have approximately 500 K9 units nationwide. It could be better for the safety and security of passengers in seaports if have more K9 units.” — Jomel R. Paguian

Bombmaker killed in blast

October 16, 2023 | 8:04 pm

COTABATO CITY — A local terrorist accidentally blew himself up while assembling an improvised bomb in Maguindanao del Sur last weekend, the police and military reported on Monday.

The Army’s 6^th Infantry Division in Datu Odin Sinsuat, Maguindanao del Norte identified the fatality by his alias in the terror group Bangsamoro Islamic Freedom Fighters, “Tantung Kamad.” It added that the bombmaker’s identity was confirmed by his former companions in the BIFF who had surrendered to units of the 6^th ID early on.

Brig. Gen. Oriel L. Pangcog, commander of the Army’s 601^st Infantry Brigade, said the incident happened in Barangay Malangog, Datu Unsay, Maguindanao del Sur on Saturday afternoon.

The fatality was reportedly trained in fabrication and handling of improvised explosive devices using ammonium nitrate, or potassium chlorate as blasting charges or mortar projectiles rigged with blasting contraptions by the slain Malaysian terrorist Marwan, whose real name is Zulkifli Bin Hir. — John Felix M. Unson

2 more witnesses against De Lima retract claims

October 16, 2023 | 8:03 pm

leila-de-lima-michael-varcas_2019-02-22_23-23-25 — PHILIPPINE STAR/ MICHAEL VARCAS

TWO MORE witnesses have taken back their allegations against detained former senator Leila M. de Lima, who has been imprisoned since Feb. 2017 on drug trafficking charges.

During a hearing on Ms. De Lima’s remaining illegal drug case, former police Major Rodolfo T. Magleo and former Sergeant Nonilo Arile, who was an inmate at the national penitentiary, handed her a letter that detailed their recantations, said her lawyer Filibon F. Tacardon during a livestreamed briefing with reporters on Monday.

The two witnesses wanted to recant their allegations because they were “bothered by their conscience,” according to a copy of the letter.

“We both planned to recant as early as 2018 but due to impossibility of communication, we were unable to do so,” the former police officers said in the letter. “We want to help you be set free together with your fellow co-accused.”

“The prosecutors and the judge are in the best position to determine whether weight should be put on the recanted statement or the original statement,” Justice spokesman Jose Dominic F. Clavano IV said in a Viber message. “In the end, all parties just want the truth.”

Ms. De Lima’s camp claimed that five more state witnesses are also expected to recant their allegations.

Four witnesses previously retracted their testimonies against the former lawmaker. They all claimed to have been coerced by the previous administration.

A Muntinlupa trial court in May acquitted Ms. De Lima and her former aide of drug trafficking charges. Her first drug case was dismissed in 2021 and the Ombudsman cleared her of bribery charges due to lack of evidence last year.

In February, former prison chief Rafael Z. Ragos retracted his allegations against the former senator in open court, saying he had been coerced by a former Justice chief into testifying. — John Victor D. Ordoñez

Para team targets to surpass 11^th place finish in Indonesia

October 16, 2023 | 6:58 pm

THE PHILIPPINE team sets out to surpass, if not replicate, its 10-gold, 11^th-place performance in the last Asian Para Games in Jakarta, Indonesia five years ago as it goes up against the best in the region in the Hangzhou, China edition set Oct. 22 to 28.

The first batch of the 176-strong delegation, which is mostly composed of the proud and determined chess squad, left the country yesterday with a stopover from Hong Kong before proceeding straight to Hangzhou.

There, the Filipinos hope to eclipse, if not match, their 10-gold, eight-silver and 11-bronze medal haul in Jakarta where they finished a strong 11^th out of 43 countries in the region.

Leading the Filipino chessers are Darry Bernardo and Cheyzer Mendoza, who delivered five and four mints, respectively, in last May’s ASEAN Para Games in Phnom Penh, Cambodia.

Also in the James Infiesto-mentored group is FIDE Master Sander Severino a former world champion for woodpushers with physical disability who accounted for four of the five gold the country won in Jakarta.

While citing chess and swimming as the major gold medal prospects anew, Mr. Barredo said not to be overlooked are the other disciplines like cycling powerlifting, which also delivered medals in the previous Games.

“We may also see a golden breakthrough in athletics through wheelchair racer Jerrold Mangliwan and rookie thrower Andrei Kuizon, who did well in the Cambodia ASEAN Para Games,” he noted.

It will also mark the first time that the national men’s wheelchair basketball team will represent the country in the sportsfest, Mr. Barredo pointed.

“Our wheelchair basketeers will face tough challenges in Hangzhou. But like Gilas Pilipinas — who knows — they may surprise us all. The fact that they will be there is an achievement in itself,” he said.

“My position is always for our athletes to match or do better than our previous performances, that is always the target,” said Philippine Paralympic Committee (PPC) President Mike Barredo.

“Our national para athletes have worked just as hard, if not harder, to compete in the Asian Para Games so I pray that our compatriots give them their all-out support as they gave our national athletes,” said Mr. Barredo as the first batch of the Hangzhou-bound campaigners left yesterday.

Philippine contingent Chef de Mission and former national swimming standout Ral Rosario and deputies Millette Bonoan and Irene Soriano-Remo left over the weekend to prepare the way for the Nationals, whose stint is supported by the Philippine Sports Commission (PSC).

“We would like to express our gratitude to the PSC and Chairman Richard Bachmann for the government sports agency’s continued support for our participation in the Asian Para Games,” Mr. Barredo said.

The PPC honcho said that he was “guardedly optimistic’’ about the chances of the Filipino bets, who will bid to surpass the medal haul 10 gold, 8 silver and 11 bronzes, winding up 11 overall in the third edition held in Jakarta, Indonesia in 2018.

While he showed high hopes in chess and swimming, Mr. Barredo is optimistic that cycling, powerlifting as well as athletics.

“We may also see a golden breakthrough in athletics through wheelchair racer Jerrold Mangliwan and rookie thrower Andrei Kuizon, who did well in the Cambodia,” he said.

But generally, chess could end up bringing home the most gold again although Mr. Infiesto sees a stronger challenge than in Jakarta.

“We just try to do our best and be better,” said Mr. Infiesto. — Joey Villar

Petro Gazz, F2 Logistics plunge into action in PVL All-Filipino Conference

October 16, 2023 | 6:58 pm

Kianna Dy — KIANNA DY — PREMIER VOLLEYBALL LEAGUE

Games Tuesday
(Smart Araneta Coliseum)
3 p.m. — Chery Tiggo vs Farm Fresh
5 p.m. — Petro Gazz vs Galeries Tower
7 p.m. — F2 Logistics vs Akari

PETRO Gazz and F2 Logistics will launch their ambitious title campaign as they duel with newbie Galeries Tower and Akari, respectively, today in the Premier Volleyball League’s (PVL) second All-Filipino Conference at the Smart Araneta Coliseum.

The Angels and the Cargo Movers have placed second and third in the first All-Filipino Conference early this year and should go all out to improve, and not just replicate, from as they face off the High Risers and the Chargers at 5 p.m. and 7 p.m.

The only other match of the heavy three-game bill pits Chery Tiggo with Farm Fresh at 3 p.m.

F2, however, will have to open its campaign minus its star spiker Kianna Dy, who is close to recovering from her knee issues but not yet in the pink of health. “Not for (Tuesday),” F2 coach Regine Diego yesterday told The STAR when asked if Ms. Dy will play.

While they will miss Dy, F2 has a deep, loaded core of skipper Aby Marano, Majoy Baron, Myla Pablo, Ara Galang, Ivy Lacsina and Dawn Catindig plus a talented group of youthful recruits Mars Alba, Jolina dela Cruz, Jovelyn Fernandez and Ethan Arce.

While F2 was one player down, Petro Gazz should plunge into action in full force with a line up spearheaded by Grethcel Soltones, Aiza Pontillas, Jonah Sabete, Djanel Cheng, and Rem Palma.

For Galeries Tower, the franchise is not settling for moral victories.

Leading the squad are team captain Fhen Emnas, along with the returning Graze Bombita and Dimdim Pacres.

Bombita is coming off an ACL tear that sidelined him for the entire 2022 season. — Joey Villar

Roque, Altas try to sustain win streak against San Beda

October 16, 2023 | 6:57 pm

Games Tuesday
(Filoil EcoOil Arena)
2 p.m. — UPHSD vs San Beda
4 p.m. — LPU vs JRU

EVERYBODY knew but himself that Jun Roque is the next man up to take the cudgels from University of Perpetual Help (UPHSD)super senior and skipper Jelo Razon after the latter plays his final season this year.

Mr. Roque, of course, will be one of the players, if not the player, to watch when the Altas try to sustain their two-game streak against a dangerous San Beda today (Oct. 17) in NCAA Season 99 at the Filoil EcoOil Arena.

Mr. Roque was the man of the hour in the Las Piñas-based school’s most recent triumph after delivering a performance to remember — 22 points, 11 rebounds, two assists and the same number of steals and blocks with just a single turnover — that hiked UPHSD’s record to 3-4.

Most of his scoring came in the second half where he buried a whopping six booming triples in an impressive show of talent that reinforced the notion that he will be heir-apparent to Mr. Razon, who is playing his final year.

Mr. Roque, however, has been painfully inconsistent.

Mr. Roque thanked his coach as well as Mr. Razon for their guidance.

But there is hope Mr. Roque could sustain this memorable effort against San Beda (4-2) in their 2 p.m. duel.

Meanwhile, Lyceum of the Philippines University (6-2) and Jose Rizal University (4-3) aim to stop a two-game slide and battle each other at 4 p.m. — Joey Villar

Top seed Cavitex Braves and TnT Triple Giga sweep respective groups, advance to PBA 3×3 quarters

October 16, 2023 | 6:57 pm

TOP seed Cavitex and No. 2 TnT flexed their muscles and swept their respective groups to lead the early quarterfinalists in the PBA 3×3 Season 3 Second Conference Leg 1 yesterday at the Ayala Malls Circuit in Makati City.

The Braves, winner of two legs and podium finishers in all six stops of the previous conference, crushed Blackwater, 22-13, in the Pool A opener behind sizzling pair Jorey Napoles (nine points) and Ken Ighalo (eight), who hit a perfect five-of-five clip from deep between themselves.

Messrs. Ighalo and Napoles later combined for 11 as the Braves outclassed Pioneer Elastoseal, 18-14 to seal a 2-0 sweep and advance to today’s KO rounds as topnotcher of three-team Pool A.

Blackwater (1-1), gaining from its 21-8 demolition of Pioneer, joined Cavitex into the next stage as Pool A No. 2.

Meanwhile, Gryann Mendoza picked up the cudgels in the absence of injured top gunner Almond Vosotros as the Triple Giga went 3-0 in Pool B.

Mr. Mendoza fired eight in TNT’s 21-20 nipping of league newcomer MCFA Solver Tech Centrale then erupted for 11 in a followup 21-18 disposal of San Miguel Beer.

It was the turn of Ping Exciminiano (nine) and Matt Salem (seven) to step up to the plate in a 21-14 shellacking of NorthPort as TNT, winner of four straight conference championships, took its expected spot in the Last-8.

In Pool C, redemption-seeking Purefoods and perennial contender Meralco secured their Last-8 seats after picking two Ws out of three games.

The Titans, on the mend after finishing no higher than sixth in the First Conference, opened their campaign with victories over Ginebra (17-16) and Terrafirma (19-12) before losing to the Bolts (13-15).

Aside from Purefoods, the Bolts were also triumphant against the Dyip (21-16) but yielded a 19-21 setback to Ginebra (1-1).

Pool play culminates today (Oct. 16) with SMB (1-1) and MCFA (0-2) duking it out in Pool B and the Gin Kings and the Dyip (0-2) battling in Pool C followed by the knockout rounds. — Olmin Leyba

Qatar’s Sheikh Jassim refuses to raise $6-B Man Utd bid

October 16, 2023 | 6:57 pm

QATAR’S Sheikh Jassim bin Hamad al Thani has informed the Glazer family that controls Manchester United Plc that he will not improve on his bid to acquire the iconic soccer club for more than $6 billion, people familiar with the matter said.

The move leaves the remaining bidder for Manchester United (Man Utd), Ineos Chair Jim Ratcliffe, in a stronger position. He has offered to buy only a 25% stake in the club, allowing some of the Glazers to cash out, and it remains unclear whether he will clinch an agreement.

The exact value that Mr. Ratcliffe’s bid infers on Manchester United could not be learned, but the sources said it was higher than Mr. Jassim’s offer of more than $6 billion. Manchester United is currently valued by the stock market at $3.3 billion.

Mr. Ratcliffe’s deal, if finalized, could be announced later this month, the Wall Street Journal reported on Sunday, citing people familiar with the matter.

Mr. Ratcliffe would oversee the team’s operations and talent acquisition, while the Glazers will remain in charge of the commercial side of the business, according to the Wall Street Journal report.

Mr. Jassim, who had also promised to invest more than $1.7 billion in Manchester United after he acquired it, still wants a deal but has informed the Glazer family that there is no point in remaining in the bidding process following nine months of unsuccessful negotiations, the sources said.

Mr. Jassim would not have used any debt to acquire Manchester United and his bid would have paid down the club’s existing debt pile, which net of cash totals more than $600 million, the sources added.

The sources asked not to be identified because the matter is confidential. Representatives for Mr. Jassim declined to comment while Manchester United and Mr. Ratcliffe representatives did not respond to a request for comment. Sky News reported earlier on Saturday that Mr. Jassim was withdrawing from the bidding process.

The Glazers’ valuation expectations have been aggressive based on other soccer deals. Last year, the $3.1 billion acquisition of Chelsea Football Club by an investment group led by Todd Boehly and Clearlake Capital valued it at 5.7 times revenue for its last financial year.

Valuing Manchester United more than Mr. Jassim’s bid, at $7 billion for example, would be equivalent to 11 times the club’s revenue over the last 12 months, according to LSEG data.

The Glazer family, which made its fortune in real estate, retail and healthcare and also owns the NFL’s Tampa Bay Buccaneers, bought the team for £790 million ($960 million) in 2005. The six descendants of Malcolm Glazer, who died in 2014, together control 96% of Manchester United’s voting stock.

The club announced in November 2022 that the Glazers were exploring cashing out on their ownership.

Record 20-time English champions, Manchester United has over 650 million fans worldwide, according to market research firm Kantar.

That is because the Glazers have overseen a significant downturn in the club’s fortunes, with the club winning just the last of their 20 top-flight titles in former manager Alex Ferguson’s final season in charge in 2012-13. — Reuters

India, Indonesia risk biggest fallout from geopolitical shocks

October 16, 2023 | 6:46 pm

A TRIUMVIRATE of high oil prices, a surging dollar and geopolitical instability are set to weigh on India and Indonesia among Asia’s emerging markets, while energy exporter Malaysia may prove a rare beneficiary.

Economists are fretting over the fallout on developing Asia from a widening of the Israel-Hamas war, with policymakers struggling to assess the consequences for oil supply and the scope of the potential impact on growth. The jump in both the dollar and long-term Treasury yields exacerbate the risks for economies running high current-account deficits.

Brent crude prices have jumped almost 20% in the past three months and Bloomberg Economics estimates they could soar to $150 a barrel, from about $90 now, if the Middle East conflict widens to include Iran. The Islamic Republic supplies arms and cash to Hamas, which the US and European Union designate as a terrorist group, and backs the Hezbollah militia in Lebanon.

The Israel-Hamas conflict comes on top of Russia’s protracted war on Ukraine and simmering superpower tensions between the US and China. The following charts show countries more exposed to a higher-for-longer dollar and oil price.

“If higher oil prices persist for a prolonged period, we see India, Thailand, the Philippines, Indonesia more vulnerable to terms of trade deterioration,” said Lavanya Venkateswaran, a senior economist at Oversea-Chinese Banking Corp. Ltd. “Moreover, as ‘twin deficit’ economies — current account and fiscal deficits — they may be more vulnerable to capital outflows.”

Alicia Garcia Herrero at French investment bank Natixis SA said high external debt positions mean Sri Lanka and Pakistan are most at risk. Indonesia and India are also vulnerable “since they tend to run current-account deficits and need external financing for that,” she said.

Compounding the problem, US Treasury yields have soared on concerns that higher oil prices will revive inflation pressures. That’s another headwind for nations running high budget deficits as they’ll likely struggle to raise funds in global markets, Ms. Garcia Herrero added.

Emerging Asian bonds have become less attractive for investors — the premiums a borrower pays to own Indian or Indonesian bonds against US debt, for example, have hit the lowest level since at least the 2008-09 global financial crisis.

Strategists at HSBC Holdings Plc say they prefer the Chinese renminbi and the Korean won among low-yielding Asian currencies. They highlight Beijing’s tight focus on fine-tuning fiscal policy and recent property market measures and the Bank of Korea’s consistent foreign exchange sales and the country’s potential inclusion in a global bond index next year.

“The other low-yielding currencies not only do not have these supportive factors, they also have certain individual shortcomings,” the HSBC strategists wrote, pointing to election uncertainty for the Taiwanese dollar, deteriorating fiscal metrics for the Thai Baht and overvaluation for the Singapore dollar.

“Among higher-yielding currencies, we have a slight preference for the Philippine peso and the Indian rupee over the Indonesia rupiah,” they said.

One country that stands to benefit from rising oil prices is Malaysia, in terms of both growth and the nation’s fiscal position, economists said.

“We see increased export duties, petroleum income taxes, and dividends from the state-owned Petronas to be adding to the fiscal revenue,” said Bum Ki Son, Singapore-based regional economist at Barclays Plc. “For Indonesia, we think the fiscal position is likely to deteriorate.”

Economists see some positives for India despite the higher dollar and elevated oil prices. Natixis’ Ms. Garcia Herrero pointed to strong macroeconomic data that makes the country’s assets attractive despite the headwinds.

“The fact that Indian data has been so strong — latest PMI was the best in Asia — does help India,” said Ms. Garcia Herrero. — Bloomberg

US bolstering firepower in the Middle East

October 16, 2023 | 6:45 pm

American-US-flag — STOCK PHOTO | Image from Pixabay

WASHINGTON/CAIRO — The United States is bolstering its firepower in the Middle East to prevent the spread of the conflict between Israel and Palestinian militant group Hamas and deter Iran from getting involved as international fears of a wider regional war grow.

The newest US aircraft carrier — and the world’s largest — is already in the eastern Mediterranean and set to be joined by a second US aircraft carrier in the next 10 days.

While the White House says there are “no plans or intentions” for their use, it means US military assets would be in place to provide air support to protect US national security interests if needed. The US also has an array of bases in the Middle East with troops, fighter aircraft and warships.

“Every effort is being made to stop this from becoming a regional conflict. If that happens, it is going to draw US resources in a big way,” said a US official, speaking on condition of anonymity. “I don’t want to speculate on what assistance can be offered if there is a wider conflict, those decisions haven’t been made yet.”

US Secretary of State Antony Blinken — speaking in Cairo on Sunday after days of Middle East shuttle diplomacy — delivered a blunt message and a veiled warning to US foe Iran: “When it comes to Israel security, we have Israel’s back.”

He said the deployment of two aircraft carrier strike groups was “not to provoke anyone, but just to send a very clear message of deterrence that no one should do anything that widens this conflict in any way, or that furthers aggression against Israel from any other direction.”

Iranian Foreign Minister Hossein Amirabdollahian warned on Sunday that “the hands of all parties in the region are on the trigger,” while Iran’s mission to the United Nations in New York said if Israel does not attack it, its interests or citizens, then Iran’s armed forces would not engage militarily.

Israel has vowed to annihilate Iran-backed Hamas – which controls the Gaza Strip – after its fighters stormed Israeli towns eight days ago, killing 1,300 people and seizing hostages in the worst attack on civilians in the country’s history.

HEZBOLLAH FEARS
International diplomacy has been focused on preventing a spill over of the conflict — particularly into Lebanon.

While Israel has been intensely bombing Gaza for the past week and preparing for a ground offensive, the country’s military has also clashed on the Lebanese border with the Iran-backed, heavily armed Hezbollah group in the deadliest confrontations since they fought a month-long war in 2006.

When asked if the United States could provide air support in northern Israel, White House national security spokesperson John Kirby said: “No plans or intentions at this time.”

“That said, we take our national security interests seriously and we have ample military force in the region to protect and defend those interests as needed,” Kirby added.

Any decision to launch military action in the Middle East would come from US President Joseph R. Biden, a Democract, himself. Such a move already has some Republican support.

Senator Lindsey Graham, an influential Republican voice on national security affairs, told Reuters on Sunday he would propose that Congress authorize a US attack on Iran’s oil industry if “a second front is opened in the north” of Israel.

“If there’s an effort by Hezbolllah to unleash a massive attack on Israel, the Iranians should pay a heavy price for that,” he said. “Any escalation by Iran — triggering Hezbollah, killing the hostages — should put them in the crosshairs.”

US Defense Secretary Lloyd Austin said on Thursday the United States had seen no indications that Lebanon’s Hezbollah militants were amassing to potentially attack Israel, widening the conflict.

“We’ve not seen any massing of forces along the border,” Mr. Austin said. “This is something that the Israelis are focused on. We are also looking for additional things that could widen the conflict here and hopefully, we won’t see those things.”

Two US officials, speaking on the condition of anonymity, said the naval ships in the region were truly meant as a show of force and to give Biden options in the future if needed, rather than some certain plan for the US to get involved. — Reuters

Airline CEO-turned-politician Luxon to lead New Zealand to the right

October 16, 2023 | 6:44 pm

WELLINGTON — Just three years after entering politics, former businessman Christopher Luxon is set to lead New Zealand to the right as prime minister-elect, ending six years of Labor-led center-left government.

The former Air New Zealand chief executive officer (CEO), Mr. Luxon became leader of the center-right National Party at the end of 2021, boosting its popularity until winning Saturday’s general election.

National won 50 seats and its preferred coalition partner, ACT New Zealand, won 11, securing a majority of one seat in the 121-seat parliament, according to provisional results from the Electoral Commission. Final results are due Nov. 3.

Mr. Luxon, who held senior roles at global consumer goods firm Unilever and delivered consistent profits running Air New Zealand from 2012 to 2019, has said he would use the skills he bought to managing businesses to improve New Zealand.

The 53-year-old has promised to curb historically high inflation and reduce government debt by cutting spending and narrowing the central bank’s mandate to targeting inflation, in order to help financially stretched middle-income families.

“I want to bring the country together, I want to actually make sure that we are focussed on delivering outcomes for New Zealanders,” Mr. Luxon told a press conference, dressed in an All Blacks jersey after watching the national rugby team win a dramatic World Cup quarterfinal.

“I’m a person who likes to bring teams together and make sure that I get the best out of that team and use all the skills in that team, so that’s my mode.”

In a country where almost half the people say they have no religion, Mr. Luxon has faced scrutiny for saying he was Christian and has had to defend stances such as personally opposing abortion. He has committed to maintaining legal abortion and supported same-sex marriage.

“Faith is deeply personal, but I am not there to act in the interests of one faith, one group, one person or one belief system. I’m there to represent all New Zealanders,” Mr. Luxon told Reuters earlier this year.

A millionaire father of two with several homes across the country, Luxon is learning the Maori language and is a Taylor Swift fan, quoting her in televised debates and interviews.

Although well-travelled, he is largely untried on foreign policy. Luxon has strongly supported Ukraine in its invasion by Russia, in line with New Zealand’s traditional allies. He has said there will be little change in New Zealand’s foreign policy. — Reuters

Australia fines Musk’s X platform $386,000 over anti-child abuse gaps

October 16, 2023 | 6:43 pm

TWITTER-MUSK-X-SIGN — ‘X’ logo is seen on the top of the headquarters of the messaging platform X, formerly known as Twitter, in downtown San Francisco, California, US, July 30, 2023. — REUTERS/CARLOS BARRIA

SYDNEY — An Australian regulator has fined Elon Musk’s social media platform X A$610,500 ($386,000) for failing to cooperate with a probe into anti-child abuse practices, a blow to a company that has struggled to keep advertisers amid complaints it is going soft on moderating content.

The e-Safety Commission fined X, the platform Mr. Musk rebranded from Twitter, saying it failed to respond to questions including how long it took to respond to reports of child abuse material on the platform and the methods it used to detect it.

Though small compared to the $44 billion Mr. Musk paid for the website in October 2022, the fine is a reputational hit for a company that has seen a continuous revenue decline as advertisers cut spending on a platform that has stopped most content moderation and reinstated thousands of banned accounts.

Most recently the EU said it was investigating X for potential violation of its new tech rules after the platform was accused of failing to rein in disinformation in relation to Hamas’ attack on Israel.

“If you’ve got answers to questions, if you’re actually putting people, processes and technology in place to tackle illegal content at scale, and globally, and if it’s your stated priority, it’s pretty easy to say,” Commissioner Julie Inman Grant said in an interview.

“The only reason I can see to fail to answer important questions about illegal content and conduct happening on platforms would be if you don’t have answers,” added Inman Grant, who was a public policy director for X until 2016.

X closed its Australian office after Mr. Musk’s buyout, so there was no local representative to respond to Reuters. A request for comment sent to the San Francisco-based company’s media email address was not immediately answered.

Under Australian laws that took effect in 2021, the regulator can compel internet companies to give information about their online safety practices or face a fine. If X refuses to pay the fine, the regulator can pursue the company in court, Inman Grant said.

After taking the company private, Mr. Musk said in a post that “removing child exploitation is priority #1”. But the Australian regulator said that when it asked X how it prevented child grooming on the platform, X responded that it was “not a service used by large numbers of young people.”

X told the regulator that available anti-grooming technology was “not of sufficient capability or accuracy to be deployed on Twitter.”

Inman Grant said the commission also issued a warning to Alphabet’s Google for noncompliance with its request for information about handling of child abuse content, calling the search engine giant’s responses to some questions “generic.” Google said it had cooperated with the regulator and was disappointed by the warning.

“We remain committed to these efforts and collaborating constructively and in good faith with the e-Safety Commissioner, government and industry on the shared goal of keeping Australians safer online,” said Google’s director of government affairs and public policy for Australia, Lucinda Longcroft.

X’s noncompliance was more serious, the regulator said, including failure to answer questions about how long it took to respond to reports of child abuse, steps it took to detect child abuse in livestreams and its numbers of content moderation, safety and public policy staff.

The company confirmed to the regulator that it had cut 80% of its workforce globally and has no public policy staff in Australia, compared to two before Mr. Musk’s takeover.

X told the regulator its proactive detection of child abuse material in public posts dropped after Mr. Musk took the company private.

The company told the regulator it did not use tools to detect the material in private messages because “the technology is still in development”, the regulator said. — Reuters