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Cardinal among 10 indicted by Vatican for financial crimes

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  • Pope approved move against cardinal, who says he is innocent
  • Former head of Vatican Financial Intelligence denies charges
  • Becciu most senior Vatican official charged with financial crime
  • Trial to start July 27

VATICAN CITY, July 3 (Reuters) – A prominent Italian cardinal was among 10 people sent to trial in the Vatican on Saturday charged with financial crimes including embezzlement, money laundering, fraud, extortion and abuse of office.

Cardinal Angelo Becciu, formerly a senior official in the Vatican administration, as well as two top officials at the Vatican’s Financial Intelligence Unit will go on trial on July 27 over a multi-million euro scandal involving the Vatican’s purchase of a building in one of London’s smartest districts.

The trial will inevitably bring a swirl of media interest to the tiny city-state surrounded by Rome, and appears to underscore Pope Francis’ determination to cure the rot in Vatican finances, even if it involves messy public hearings.

Becciu, 73, whom the pope fired from his senior clerical post last year for alleged nepotism, and who has always maintained his innocence during a two-year investigation, becomes the most senior Vatican official to be charged with financial crimes.

The pope personally gave the required approval last week for Becciu to be indicted, according to a 487-page indictment request seen by Reuters. The Vatican announced the indictments in a two-page statement.

The charges against Becciu include embezzlement and abuse of office. An Italian woman who worked for him was charged with embezzlement and the cardinal’s former secretary, a priest, was accused of extortion.

Becciu said in a statement that he was a victim of a “machination” and reaffirmed his “absolute innocence”.

Two Italian brokers, Gianluigi Torzi and Raffaele Mincione, were charged with embezzlement, fraud and money laundering. Torzi, for whom Italian magistrates issued an arrest warrant in April, was also charged with extortion.

There was no immediate response to attempts to reach their lawyers, but both men have consistently denied wrongdoing.

Four companies associated with individual defendants, two in Switzerland, one in the United States and one in Slovenia, were also indicted, according to the document.

POLICE RAID

The investigation into the purchase of the building became public on Oct. 1, 2019, when Vatican police raided the offices of the Secretariat of State, the administrative heart of the Catholic Church, and those of the Vatican’s Financial Information Authority (AIF).

The then-president of the AIF, Rene Bruelhart, a 48-year-old Swiss, and AIF’s former Italian director, Tommaso Di Ruzza, 46, were charged with abuse of office for allegedly failing to adequately protect the Vatican’s interests and giving Torzi what the indictment request called an “undue advantage”.

Di Ruzza was also accused of embezzlement related to alleged inappropriate use of his official credit card, and of divulging confidential information.

Bruelhart said in a text message that he had “always carried out my functions and duties with correctness” and that “the truth about my innocence will emerge.”

Di Ruzza did not immediately respond to a voicemail requesting comment.

In 2014, the Secretariat of State invested more than 200 million euros, much of it from contributions from the faithful, in a fund run by Mincione, securing about 45% of a commercial and residential building at 60 Sloane Avenue in London’s South Kensington district.

The indictment request said Mincione had tried to deceive the Vatican, which in 2018 tried to end the relationship.

It turned to Torzi for help in buying up the rest of the building, but later accused him of extortion.

‘ENORMOUS LOSSES’

At the time, Becciu was in the last year of his post as deputy secretary of state for general affairs, a powerful administrative position that handles hundreds of millions of euros.

All told, the Secretariat of State sank more than 350 million euros into the investment, according to Vatican media, and suffered what Cardinal George Pell, the former Vatican treasurer, told Reuters last year were “enormous losses”.

Torzi was arrested in the Vatican in June 2020, and spent a week in custody.

According to the indictment request, Becciu is charged with five counts of embezzlement, two of abuse of office, and one count of inducing a witness to perjury. About 75 pages of the document are dedicated to Becciu.

It says Becciu tried to “heavily deflect” the inquiry into Vatican investments, including the London building, and tried to discredit the investigating magistrates via the Italian media.

Becciu continued to have influence over money transfers at the Secretariat even after he left the post, the document said.

The main charges against Becciu involve the alleged funnelling of money and contracts to companies or charitable organisations controlled by his brothers on their native island of Sardinia.

Another Sardinian, Cecilia Maronga, 40, who worked for Becciu, was charged with embezzlement. Her cellphone was not connected.

The indictment request said she had received about 575,000 euros from the Secretariat of State in 2018-2019.

She has said on Italian television that the money, sent to her company in Slovenia, was to ransom kidnapped missionaries in Africa. But the indictment request said much of it was used for “personal benefit”, including the purchase of luxury goods.

Reporting by Philip Pullella; Editing by Kevin Liffey

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Hurricane Elsa cuts power, batters homes in Barbados

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CHRIST CHURCH, Barbados, July 2 (Reuters) – Hurricane Elsa blew roofs off homes, toppled trees and sparked flooding in the island nation of Barbados then pounded St. Vincent with heavy rain and winds on Friday, as the storm was tracking towards Haiti.

Minister of Home Affairs, Information and Public Affairs Wilfred A. Abrahams urged Barbadians to shelter in place and only leave their homes if the structures were damaged.

Elsa strengthened into a hurricane earlier in the day and was about 95 miles (153 km) west-northwest of St. Vincent, blowing maximum sustained winds of 85 miles per hour (140 kph), the U.S. National Hurricane Center (NHC) said.

“The island definitely cannot handle any sort of damages at this point because we still haven’t recovered from the volcanic eruption yet,” said 20-year-old student Queriise Thomas in the community of Choppins in southern St. Vincent.

Earlier this year, heavy rains slammed St. Vincent with major flooding and landslides after a series of volcanic eruptions blanketed large swathes of the island in a thick layer of ash. read more

Thomas said intermittent heavy rain caused flooding and parts of the island lost electricity. St. Vincent’s water and sewage authority cut water supply to all residents as a precaution due to potential mudflows.

The NHC forecast 4 to 8 inches (10 to 20 cm) of rain with a maximum of 15 inches (38 cm) across the Windward and southern Leeward Islands including Barbados, which could lead to isolated flash flooding and mudslides.

A man views damage to a home after strong winds of Hurricane Elsa passed St. Michael, Barbados July 2, 2021. REUTERS/Nigel Browne

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Hurricane conditions were expected in Haiti and possible in the Dominican Republic and Jamaica by late Saturday, the agency said.

The Barbados minister said damage was reported in the south of the island including power outages, fallen trees, flash flooding and damaged roofs.

Emergency services were unable to reach people, but there were no reports of injuries or deaths.

A resident in south Barbados, 43-year-old structural engineer Greg Parris, whose home lost power around 7 a.m., said: “It was scary. Most of us, we haven’t experienced anything like this for a while.”

Elsa’s progress should be monitored by the Windward Islands, Leeward Islands, the Virgin Islands, Puerto Rico, the Dominican Republic, Cuba and the Cayman Islands, the Miami-based NHC said.

Little change in Elsa’s strength was forecast over the next 48 hours and some decrease in winds is possible on Monday, the hurricane center said.

Elsa’s storm surge was expected to raise water levels by as much as 1 to 4 feet above normal tide levels in some areas. Puerto Rico could receive up to 5 inches of rain, the NHC.

Reporting by Robert Edison Sandiford in Christ Church, Barbados and Kate Chappell in Kingston, Jamaica; Additional reporting by Anthony Esposito in Mexico City and Nakul Iyer in Bengaluru; Editing by Janet Lawrence and Cynthia Osterman

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India’s Bharat Biotech says vaccine 93.4% effective against severe COVID-19

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July 3 (Reuters) – Phase-III trials of a vaccine made by India’s Bharat Biotech showed it was 93.4% effective against severe symptomatic COVID-19, the firm said on Saturday, a finding that could boost people’s acceptance of Covaxin.

The data demonstrated 65.2% protection against the Delta variant, first identified in India, that led to a surge in infections in April and May, and the world’s highest daily death tolls.

India’s homegrown vaccine also showed effectiveness of 77.8% against symptomatic COVID-19 in the trial.

Last month, vaccine maker AstraZeneca Plc (AZN.L) also said its vaccine was effective against the Delta and Kappa variants, citing a study.

India has been administering the AstraZeneca vaccine, made domestically by the Serum Institute of India, which said last month it planned to step up monthly production from July, to nearly 100 million doses.

Bharat Biotech now estimates it will make 23 million doses a month.

The Phase-III data came as Ocugen Inc (OCGN.O), which is co-developing Covaxin with Bharat Biotech for the U.S. market, prepares to file a request for full U.S. approval.

India, with a tally of 30.45 million infections, is the second most affected nation after the United States, with 33 million. The south Asian nation’s death toll has now crossed 400,000.

Reporting by Maria Ponnezhath in Bengaluru; Editing by Clarence Fernandez

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France probes fashion retailers for concealing ‘crimes against humanity’ in Xinjiang

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Customers enter a Zara shop in Nantes as non-essential business re-open after closing down for months, amid the coronavirus disease (COVID-19) outbreak in France, May 19, 2021. REUTERS/Stephane Mahe/File Photo

PARIS, July 1 (Reuters) – French prosecutors have opened an investigation into four fashion retailers suspected of concealing “crimes against humanity” in China’s Xinjiang region, a judicial source said on Thursday.

The procedure is linked to accusations against China over its treatment of minority Muslim Uyghurs in the region, including the use of forced labour, the source said.

China denies all accusations of abuse in the region.

The source told Reuters Uniqlo France, a unit of Japan’s Fast Retailing (9983.T), Zara owner Inditex (ITX.MC), France’s SMCP (SMCP.PA) and Skechers (SKX.N) were the subject of the investigation, confirming a report by French media website Mediapart.

“An investigation has been opened by the crimes against humanity unit within the antiterrorism prosecutor’s office following the filing of a complaint,” the source said.

France has a Central Office to Fight Crimes against Humanity, Genocide and War Crimes, founded in 2013.

Inditex said it rejected the claims in the legal complaint, adding that it conducted rigorous traceability controls and would fully cooperate with the French investigation.

“At Inditex, we have zero tolerance for all forms of forced labour and have established policies and procedures to ensure this practice does not take place in our supply chain,” the company said in a statement.

SMCP said it would cooperate with the French authorities to prove the allegations false.

“SMCP works with suppliers located all over the world and maintains that it does not have direct suppliers in the region mentioned in the press,” SMCP said, adding that it regularly audited its suppliers.

Fast Retailing said in a statement from Tokyo that it had not been contacted by French authorities and that none of its production partners are located in Xinjiang.

“If and when notified, we will cooperate fully with the investigation to reaffirm there is no forced labour in our supply chains,” it said.

The company lost an appeal with United States Customs in May after a shipment of Uniqlo men’s shirts were impounded because of suspected violations of a ban on Xinjiang cotton. read more

Skechers said it does not comment on pending litigation. It referred Reuters to a March 2021 statement in which it said it maintained a strict supplier code of conduct.

Two nongovernmental organisations (NGOs) filed a complaint in France in early April against multinationals for concealment of forced labour and crimes against humanity.

United Nations experts and rights groups estimate over a million people, mainly Uyghurs and other Muslim minorities, have been detained in recent years in a vast system of camps in China’s western Xinjiang region.

Many former inmates have said they were subject to ideological training and abuse. Rights groups say the camps have been used as a source of low-paid and coercive labour.

China initially denied the camps existed, but has since said they are vocational centres designed to combat extremism. In late 2019, China said all people in the camps had “graduated.”

Several Western brands including H&M (HMb.ST), Burberry (BRBY.L) and Nike (NKE.N) have been hit by consumer boycotts in China after raising concerns about reports of forced labour in Xinjiang. read more

In March, the United States, the European Union, Britain and Canada imposed sanctions on Chinese officials, citing human rights abuses in Xinjiang. Beijing retaliated immediately with its own punitive measures. read more

Human Rights Watch this year documented what it said could constitute crimes against humanity being committed in Xinjiang.

Reporting by Benoit Van Overstraeten in Paris
Additional reporting by Richard Lough in Paris, Jesus Aguado in Madrid and Rocky Swift in Tokyo.
Editing by Kirsten Donovan and Matthew Lewis

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Australia to halve arrivals from overseas, offers COVID-19 exit roadmap

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  • Australia to cut arrivals from overseas to 3,000 a week
  • NSW reports 31 new cases, biggest daily rise for 2021
  • Brisbane lockdown extended for another day

SYDNEY, July 2 (Reuters) – Australia will halve the number of arrivals from overseas as its coronavirus hotel quarantine system creaks under pressure from outbreaks of the highly transmissible Delta variant, Prime Minister Scott Morrison said on Friday.

The new restrictions on travel come as Australia fights outbreaks of the Delta variant simultaneously in three state capital cities, meaning nearly half of all Australians are currently under strict orders to stay at home. Most recent outbreaks have been traced to leaks in hotel quarantine.

Australia shut its international borders early last year largely to non-citizens. Permanent residents and returning Australian travellers, except those exiting New Zealand, have to quarantine in hotels for two weeks at their own expense.

Morrison said Australia will now only accept about 3,000 travellers from overseas per week. Lowering the cap will be finalised by July 14, he said, though some states can move earlier.

Speaking after a meeting of the country’s national cabinet, Morrison also said a four-phase plan had been agreed to reopen Australia after lockdowns triggered by the latest outbreaks. He said this would be based on achieving vaccination levels aimed at suppressing COVID-19 to a stage where it would be managed like other infectious diseases like the flu.

“Our mind-set on managing COVID-19 has to change once you move from pre-vaccination to post-vaccination. That’s the deal for Australians,” Morrison told reporters in Canberra.

The four-phased approach could give fully vaccinated people more freedoms, he said, including shorter quarantine period after arriving from overseas.

New South Wales (NSW) capital Sydney, Australia’s largest city and home to a fifth of the country’s 25 million population, is half-way through a two-week lockdown imposed in a bid to contain the Delta variant.

On Friday it warned residents to brace for an increase in COVID-19 infections over the next few days as it reported the biggest daily rise in locally acquired cases recorded so far this year.

Thirty-one local cases were reported in NSW on Friday, so far the biggest daily rise in cases during the latest outbreak and for 2021. Total infections have grown to more than 200 since the first case was detected more than two weeks ago.

“We are anticipating there could be an increase in numbers over the next few days, then hopefully early next week we should see the impact of the lockdown really turning and having a positive impact,” NSW Premier Gladys Berejiklian told reporters.

Queensland officials said lockdown rules will be eased in parts of Queensland from Friday, although they have been extended in state capital Brisbane and a neighbouring region for another day after three new cases were reported.

Lockdown in Darwin, the Northern Territory capital, will also be lifted on Friday. Restrictions in Perth will be reviewed later in the day.

Lockdowns, swift contact tracing and tough social distancing rules have helped Australia to suppress prior outbreaks, but the fast-moving Delta strain has alarmed authorities amid a sluggish nationwide vaccination drive.

The rollout, mired in confusion and frustration due to frequent changes in medical advice for the AstraZeneca (AZN.L) vaccine, has become a flashpoint in relations between the federal government and state leaders. read more

Reporting by Renju Jose; Editing by Kenneth Maxwell

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Germany could ease travel curbs as Delta variant takes over

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People walk past a colonnade on Museum Island during warm temperatures, amid the coronavirus disease (COVID-19) pandemic, in Berlin, Germany May 30, 2021. REUTERS/Annegret Hilse

BERLIN, July 1 (Reuters) – Germany expects the Delta variant of COVID-19 to account for up to 80% of infections this month and could ease travel restrictions from countries like Portugal and Britain where it already dominates, its health minister said on Thursday.

Jens Spahn told a news conference that Germany could reduce the current 14-day quarantine requirement that it imposes on travellers from countries with high levels of the Delta variant once it is sure that vaccinated people are protected.

Spahn said the move could happen soon, without specifying.

Germany’s STIKO vaccination commission said later on Thursday that UK studies show that two vaccines doses seem to provide as much protection against the Delta variant as against other COVID-19 variants. read more

Spahn reiterated the importance of speeding up vaccinations, noting that 37% of Germany’s population has now received two shots, while 55% has had a first dose.

About half of German coronavirus cases are currently Delta variant and Spahn said it will dominate later this month.

Germany last week declared Portugal and Russia to be “virus-variant zones”, meaning only German residents can enter the country from those countries and still face a mandatory two-week quarantine even if they are fully vaccinated or test negative.

That had prompted German tourists there to rush home and airlines to cancel flights.

Germany also classifies Britain as such a “virus variant” zone. Chancellor Angela Merkel is due to discuss travel restrictions when she meets British Prime Minister Boris Johnson on Friday.

Spahn suggested these countries could be shifted to a designation as risk areas, meaning people can travel if they are fully vaccinated or have recovered from COVID-19, or be released from quarantine after five days if they test negative.

The European Commission said on Tuesday that Germany should not impose a travel ban on Portugal but limit itself to imposing testing and quarantine requirements to be in line with the European Union approach meant to ease summer travel.

Reporting by Emma Thomasson and Thomas Escritt; Editing by Maria Sheahan and Catherine Evans

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Modi appeals to keep Hindu festival symbolic as India’s COVID-19 infections surge

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Indian Prime Minister Narendra Modi on Saturday appealed to devotees to keep a key Hindu festival symbolic, amid worries about the spread of COVID-19 infections as the country reported more than 200,000 new cases for a third straight day.

Criticism has mounted over the Indian government’s handling of the health crisis, as religious festivals and election rallies continue despite reports of shortages of hospital beds, oxygen cylinders and vaccination doses. read more

India reported 234,692 COVID-19 infections over the last 24 hours, taking the total number of cases to nearly 14.5 million, second only to the United States.

Deaths from the disease rose by 1,341 to 175,649.

After hundreds of thousands of ascetics and devout Hindus gathered for several days along the banks of the Ganges for a religious festival Kumbh Mela, Modi on Saturday called for restraint, saying on Twitter the festival should now be kept “symbolic”.

Responding to Modi’s appeal, one of the religious leaders Swami Avdheshanand urged devotees to not gather in large numbers. Devout Hindus believe bathing in the holy Ganges absolves people of sins, and during the Kumbh Mela, brings salvation from the cycle of life and death.

Those returning to Mumbai in western Maharashtra state from the Kumbh Mela will have quarantine in hotels, Mumbai’s mayor Kishori Pednekar said. Maharashtra accounts for quarter of India’s coronavirus cases and is the worst hit region.

Experts have warned about the spread of more contagious variants of the disease, especially during large-scale gatherings for religious festivals and political rallies.

On Saturday, Modi was scheduled to hold two rallies in eastern state of West Bengal where state polls are ongoing. In recent weeks, such rallies have attracted thousands of people, few of whom follow COVID-19 safety protocols.

“Stop spreader rallies,” the Times of India said in an editorial on Saturday, adding: “Business as usual is an unaffordable luxury until this virus is conclusively tamed.”

India’s daily COVID-19 vaccinations have slowed from their record high early this month and many state governments have requested more doses.

Federal Health Minister Harsh Vardhan assured states there were no shortages and 11.6 million doses would be made available in a week, adding that 125 million doses have already been administered.

Some state governments in India have raised concerns over hoarding and black marketing of anti-viral drug Remdesivir. read more

Nawab Malik, a minister from Maharashtra, accused Modi’s federal government on Twitter for restricting Remdesivir supplies to the state. A minister in Modi’s cabinet, Mansukh Mandaviya, denied the allegation, saying adequate supplies were being arranged.

After imposing one of the world’s strictest lockdowns for nearly three months last year, India’s government relaxed almost all curbs by the beginning of 2021, although many regions have now introduced localised restrictions.

“This is Narendra Modi’s biggest crisis yet. It is bigger than any security threat, external or internal, or even the economic attrition of 2020,” prominent editor and political commentator Shekhar Gupta wrote in a column on Saturday.

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