DealBook: British Regulators to Investigate Accounting at Autonomy

LONDON – British accounting regulators said on Monday that they would investigate the financial reporting at the British software maker Autonomy before its $11.1 billion acquisition by Hewlett-Packard in 2011.

The announcement comes after accusations from H.P. that Autonomy inflated its sales and carried out improper accounting practices that misled the American technology giant ahead of the multibillion-dollar takeover.

In November, H.P. took a charge of $8.8 billion after it wrote down the acquisition of Autonomy. The figure included around $5 billion related to what H.P. called accounting and disclosure abuses at Autonomy.

Investigations by American authorities, including the Justice Department, are under way. The Financial Reporting Council, the British accounting watchdog, said on Wednesday that it would also examine Autonomy’s financial accounts from the beginning of 2009 to the middle of 2011.

The investigation may take around a year to reach disciplinary proceedings if wrongdoing is discovered, according to a spokeswoman for the council.

Mike Lynch, the founder of Autonomy who has denied the charges of accounting misconduct leveled by H.P., said he welcomed the investigation by British regulators.

“We are fully confident in the financial reporting of the company and look forward to the opportunity to demonstrate this to the F.R.C.,” he said in a statement on behalf of the former management team of Autonomy.

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After the Big Snowstorm, the Struggle to Dig Out





Residents and emergency workers in the Northeast struggled to dig out Sunday after a gigantic midwinter storm left much of the region buried under drifting snow and reeling from gale-force winds.




As temperatures dipped into the teens across the region, utility crews worked to restore power to the more than 650,000 customers who were blacked out by the storm.


By Sunday morning, more than 300,000 customers remained without power, mostly in southeastern Massachusetts and Cape Cod, Rhode Island and on the shore line of eastern Connecticut. NStar, which serves Massachusetts, said many regions were still too dangerous to send in crews.


Road crews also labored into the night to remove snow from streets and sidewalks, piling it in whatever open space they could find. In Connecticut, crews were using a front-end loader late Saturday night to remove snow from I-95 near Fairfield.


The storm, spawned by the collision of two weather systems, affected more than 40 million people, though early reports suggest that it accounted for only a handful of deaths. One tragic case involved a young boy shoveling snow with his father in the Dorchester neighborhood of Boston who died of carbon monoxide poisoning after he retreated inside a car to warm up. The exhaust pipe had been blocked by snow.


More than three feet of snow fell in parts of Connecticut, and more than two feet accumulated on Long Island and in Massachusetts, where the storm caused coastal flooding that forced evacuations of some communities. The Weather Service said it had reports out of New Haven County of 36.2 inches falling in Oxford and 38 inches in Milford. Commack, on Long Island, got 29.1 inches of snow and MacArthur Airport in Islip, 27.5 inches. In Boston, the official accumulation was 24.9 inches, the fifth highest in city history.


Some streets in Connecticut resembled ski slopes or mountain passes, and Gov. Dannel P. Malloy on Saturday asked the federal government for help.


“As we continue with the recovery from this historic winter storm, I am asking the federal government to provide us assistance with this process,” Governor Malloy said.


Airlines were also trying to return to normal Sunday, after canceling more than 5,000 flights since Friday; the fallout could reverberate for days. Logan International Airport in Boston and the three major airports around New York City have all resumed operations.


For many areas, “this storm will rank in the top five of recorded snowstorms,” said David Stark, a meteorologist for the National Weather Service in eastern Suffolk County on Long Island. Outside his office, measurements have been taken since 1949, and this storm beat them all, with 30.9 inches.


“The way this evolved was a very classic winter nor’easter,” Mr. Stark said. “The way it formed and moved is well understood, and it is the type of situation we have seen in the past — but this storm brought more moisture and therefore more snow.”


Mayor Michael R. Bloomberg expressed relief Saturday that New York City had avoided worse damage and offered to assist the more heavily pounded neighboring states and Long Island, the hardest-hit part of New York State. Most roads in the city, he said, were well on the way to being cleared, and he thanked people for staying off the streets during the storm. The accumulation in Central Park was measured at 11.4 inches by the time the snow relented at daybreak Saturday.


“I think it is fair to say we were very lucky,” Mr. Bloomberg said.


The National Weather Service received reports of flooding up and down the Massachusetts coast, especially in areas just north and south of Boston. Water carrying slabs of ice sloshed through the streets and lapped against houses. The National Guard was sent to assist in evacuations.


Waves off the South Shore of Boston and parts of Cape Cod measured as high as 20 feet. Two feet of water was observed in Winthrop, Mass., just north of Boston. Waters breached a sea wall in the Humarock section of Scituate, while roads in Gloucester, Marblehead and Revere were reported flooded or impassable.


At a news conference, Gov. Andrew M. Cuomo said New York would send crews to Connecticut and Massachusetts to help remove snow and restore power.


Reporting was contributed by Jess Bidgood, Robert Davey, Ann Farmer, Dina Kraft, Elizabeth Maker, Eli Rosenberg, Nate Schweber, Michael Schwirtz, Katharine Q. Seelye, Ravi Somaiya, Alex Vadukul and Vivian Yee.



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All eyes on Frank Ocean as Grammy Awards approach


LOS ANGELES (AP) — Everybody's thinkin' about Frank Ocean.


Ocean is a cause celebre and the man with the momentum as Sunday's Grammy Awards approach. One of six top nominees with six nominations apiece, the 25-year-old R&B singer turned cultural talking point will have the music world's attention.


It remains to be seen if it will be the "Thinkin Bout You" singer's night, but there's no question he's dominated the discussion so far. Already a budding star with a gift for building buzz as well as crafting songs, Ocean was swept up by something more profound when he told fans his first love was a man last fall as he prepared to release his major-label debut, "channel ORANGE."


It was a bold move and one that could have submarined his career before it really even got started. Instead, everyone from Beyonce to the often-homophobic R&B and rap communities showed public support. It was a remarkable moment.


"It speaks to the advancements of our culture," renowned producer Rick Rubin said. "It feels like the culture's moving forward and he's a representative of the new acceptance in the world for different ideas, which just broadens (our experience), makes the world a better place."


Ocean is up for major awards best new artist, album of the year and record of the year when the show airs live on CBS at 8 p.m. EST from the Staples Center, sharing top-nominee billing with fun., Dan Auerbach of The Black Keys, Mumford & Sons, Jay-Z and Kanye West.


Don't hand Ocean those trophies just yet, though. R&B and hip-hop performers (Ocean is part of the Odd Future collective) have had a spotty history at the Grammys recently when it comes to major awards.


Only one R&B act has won album of the year this century, and it's hard to even call him just an R&B act given his legend, artistic scope and material: Ray Charles for his "Genius & Friends," an all-star collaboration that was honored posthumously.


Also limiting Ocean's chances for a clean sweep are his fellow top nominees. Most are riding waves of their own.


Fun. became just the second act to sweep nominations in all four major categories with a debut album, equaling Christopher Cross' 1981 feat. Like Cross' "Sailing," the New York-based pop-rock band has ridden along on the crest of an inescapable song: "We Are Young," featuring Janelle Monae.


Cross won five Grammys, sweeping the major awards. Fun. likely will have a much harder time piling up that number of victories because of the buzz surrounding the group's competitors. It's not just Ocean who has people talking.


London-based folk-rockers Mumford & Sons had one of the top-selling albums of the year with "Babel" and already has a history with The Recording Academy's thousands of voters, having been nominated for major awards the year prior. Also, The Black Keys have a winning track record at the Grammys.


And don't count out West and Jay-Z, who were shut out of the major categories but remain very much in voters' minds.


Jack White's "Blunderbuss" competes with fun.'s "Some Nights," Ocean's "channel ORANGE," Mumford's "Babel" and The Keys' "El Camino" for the night's top award, album of the year.


Gotye's "Somebody That I Used To Know," featuring Kimbra, Taylor Swift's "We Are Never Ever Getting Back Together" and Kelly Clarkson's "Stronger (What Doesn't Kill You)" join the fun., Ocean and Black Keys entries in record of the year.


Fun. and Clarkson also are nominated for song of the year along with Ed Sheeran's "The A Team," Carly Rae Jepsen's "Call Me Maybe" and Miguel's "Adorn."


And rounding out the major categories, fun., Ocean, Alabama Shakes, Hunter Hayes and The Lumineers are up for best new artist.


Those major nominees figure prominently on the 3 1/2-hour telecast, broadcast live on CBS at 8 p.m. EST.


Swift will kick things off with a show-opening performance. Fun. and Ocean will take the stage. Others scheduled to perform include Justin Timberlake, Carrie Underwood, Clarkson, White and Juanes.


There will be no shortage of mashups the Grammys have become famous for, either. Elton John, Mavis Staples, Mumford, Brittany Howard, T Bone Burnett and Zac Brown are saluting the late Levon Helm, who won the Americana Grammy last year a few months before his death. The Keys will join Dr. John and the Preservation Hall Jazz Band on stage. Sting, Rihanna and Bruno Mars will perform together. Other team-ups include Miranda Lambert and Dierks Bentley, and Alicia Keys and Maroon 5.


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Online:


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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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For Families Struggling with Mental Illness, Carolyn Wolf Is a Guide in the Darkness





When a life starts to unravel, where do you turn for help?




Melissa Klump began to slip in the eighth grade. She couldn’t focus in class, and in a moment of despair she swallowed 60 ibuprofen tablets. She was smart, pretty and ill: depression, attention deficit disorder, obsessive-compulsive disorder, either bipolar disorder or borderline personality disorder.


In her 20s, after a more serious suicide attempt, her parents sent her to a residential psychiatric treatment center, and from there to another. It was the treatment of last resort. When she was discharged from the second center last August after slapping another resident, her mother, Elisa Klump, was beside herself.


“I was banging my head against the wall,” the mother said. “What do I do next?” She frantically called support groups, therapy programs, suicide prevention lines, anybody, running down a list of names in a directory of mental health resources. “Finally,” she said, “somebody told me, ‘The person you need to talk to is Carolyn Wolf.’ ”


That call, she said, changed her life and her daughter’s. “Carolyn has given me hope,” she said. “I didn’t know there were people like her out there.”


Carolyn Reinach Wolf is not a psychiatrist or a mental health professional, but a lawyer who has carved out what she says is a unique niche, working with families like the Klumps.


One in 17 American adults suffers from a severe mental illness, and the systems into which they are plunged — hospitals, insurance companies, courts, social services — can be fragmented and overwhelming for families to manage. The recent shootings in Newtown, Conn., and Aurora, Colo., have brought attention to the need for intervention to prevent such extreme acts of violence, which are rare. But for the great majority of families watching their loved ones suffer, and often suffering themselves, the struggle can be boundless, with little guidance along the way.


“If you Google ‘mental health lawyer,’ ” said Ms. Wolf, a partner with Abrams & Fensterman, “I’m kinda the only game in town.”


On a recent afternoon, she described in her Midtown office the range of her practice.


“We have been known to pull people out of crack dens,” she said. “I have chased people around hotels all over the city with the N.Y.P.D. and my team to get them to a hospital. I had a case years ago where the person was on his way back from Europe, and the family was very concerned that he was symptomatic. I had security people meet him at J.F.K.”


Many lawyers work with mentally ill people or their families, but Ron Honberg, the national director of policy and legal affairs for the National Alliance on Mental Illness, said he did not know of another lawyer who did what Ms. Wolf does: providing families with a team of psychiatrists, social workers, case managers, life coaches, security guards and others, and then coordinating their services. It can be a lifeline — for people who can afford it, Mr. Honberg said. “Otherwise, families have to do this on their own,” he said. “It’s a 24-hour, 7-day-a-week job, and for some families it never ends.”


Many of Ms. Wolf’s clients declined to be interviewed for this article, but the few who spoke offered an unusual window on the arcane twists and turns of the mental health care system, even for families with money. Their stories illustrate how fraught and sometimes blind such a journey can be.


One rainy morning last month, Lance Sheena, 29, sat with his mother in the spacious family room of her Long Island home. Mr. Sheena was puffy-eyed and sporadically inattentive; the previous night, at the group home where he has been living since late last summer, another resident had been screaming incoherently and was taken away by the police. His mother, Susan Sheena, eased delicately into the family story.


“I don’t talk to a lot of people because they don’t get it,” Ms. Sheena said. “They mean well, but they don’t get it unless they’ve been through a similar experience. And anytime something comes up, like the shooting in Newtown, right away it goes to the mentally ill. And you think, maybe we shouldn’t be so public about this, because people are going to be afraid of us and Lance. It’s a big concern.”


Her son cut her off. “Are you comparing me to the guy that shot those people?”


“No, I’m saying that anytime there’s a shooting, like in Aurora, that’s when these things come out in the news.”


“Did you really just compare me to that guy?”


“No, I didn’t compare you.”


“Then what did you say?”


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Boeing 787 Completes Test Flight





A Boeing 787 test plane flew for more than two hours on Saturday to gather information about the problems with the batteries that led to a worldwide grounding of the new jets more than three weeks ago.




The flight was the first since the Federal Aviation Administration gave Boeing permission on Thursday to conduct in-flight tests. Federal investigators and the company are trying to determine what caused one of the new lithium-ion batteries to catch fire and how to fix the problems.


The plane took off from Boeing Field in Seattle heading mostly east and then looped around to the south before flying back past the airport to the west. It covered about 900 miles and landed at 2:51 p.m. Pacific time.


Marc R. Birtel, a Boeing spokesman, said the flight was conducted to monitor the performance of the plane’s batteries. He said the crew, which included 13 pilots and test personnel, said the flight was uneventful.


He said special equipment let the crew check status messages involving the batteries and their chargers, as well as data about battery temperature and voltage.


FlightAware, an aviation data provider, said the jet reached 36,000 feet. Its speed ranged from 435 to 626 miles per hour.


All 50 of the 787s delivered so far were grounded after a battery on one of the jets caught fire at a Boston airport on Jan. 7 and another made an emergency landing in Japan with smoke coming from the battery.


The new 787s are the most technically advanced commercial airplanes, and Boeing has a lot riding on their success. Half of the planes’ structural parts are made of lightweight carbon composites to save fuel.


Boeing also decided to switch from conventional nickel cadmium batteries to the lighter lithium-ion ones. But they are more volatile, and federal investigators said Thursday that Boeing had underestimated the risks.


The F.A.A. has set strict operating conditions on the test flights. The flights are expected to resume early this week, Mr. Birtel said.


Battery experts have said it could take weeks for Boeing to fix the problems.


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German Education Minister Quits in Plagiarism Case







BERLIN (AP) — Germany's education minister resigned Saturday after a university decided to withdraw her doctorate, finding that she plagiarized parts of her thesis — an embarrassment for Chancellor Angela Merkel's government as it prepares for elections later this year.




Merkel said she had accepted "only with a very heavy heart" the resignation of Annette Schavan, who has been her education and research minister since 2005 and was considered close to the chancellor.


On Tuesday, an academic panel at Duesseldorf's Heinrich Heine University voted to revoke Schavan's doctorate following a review of her 1980 thesis, which dealt with the formation of conscience. The review was undertaken after an anonymous blogger last year raised allegations of plagiarism, which the minister denies.


"I will not accept this decision and will file suit against it — I neither copied nor deceived in my dissertation," she told reporters, speaking alongside Merkel at a brief news conference. "The accusations, as I have said over the past weeks and months, hurt me deeply."


Schavan made clear that she was going to prevent the issue turning into a festering problem for her party, and the government, as Germany gears up for parliamentary elections on Sept. 22 in which the conservative Merkel will seek a third term.


Schavan, 57, a member of Merkel's Christian Democratic Union, announced her decision after returning from an official trip to South Africa during which, she said, she thought "thoroughly about the political consequences."


"If a research minister files a suit against a university, that of course places strain on my office, the ministry, the government and the CDU as well," she said. "And that is exactly what I want to avoid."


Merkel offered lengthy praise of Schavan's "exceptional" performance as a minister, adding that "at this time, she is putting her own personal well-being behind the common good."


Schavan will be replaced by Johanna Wanka, the outgoing regional education minister in the state of Lower Saxony, Merkel said. That state's conservative-led government narrowly lost a regional election to the center-left opposition last month.


Schavan's resignation comes two years after then-Defense Minister Karl-Theodor zu Guttenberg lost his doctorate and quit when it emerged that he copied large parts of his doctoral thesis. Schavan said at the time she was "ashamed" of that affair.


Doctorates are highly prized in Germany, where it is not unusual for people to insist on being referred to by their full academic title.


Despite the coalition government's setback in Lower Saxony, in northwestern Germany, polls show that Merkel remains popular with voters; her challenger from the center-left Social Democrats, Peer Steinbrueck, has struggled so far to gain traction.


Most recent polls show a majority neither for Merkel's current center-right coalition with the struggling pro-market Free Democrats nor for a rival combination of the Social Democrats and Greens.


They show Merkel's conservative Christian Democrats as the strongest single party. That suggests the chancellor may be able to carry on with a new coalition partner.


It's also unclear that the Schavan affair will provide much political ammunition for the opposition.


The usually low-profile minister's troubles over her three-decade-old thesis have drawn a much more measured response from opponents than in the case of Guttenberg, a rising conservative star at the time he quit.


On Friday, Sigmar Gabriel, the chairman of the Social Democrats, described Schavan as "a notably smart and, from my point of view, decent colleague."


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Stars salute MusiCares honoree Bruce Springsteen


LOS ANGELES (AP) — Be it concert or charity auction, Bruce Springsteen can bring any event to a crescendo.


Springsteen briefly took over auctioneering duties before being honored as MusiCares person of the year Friday night, exhorting the crowd to bid on a signed Fender electric guitar by amping up the deal. The 63-year-old rock 'n' roll star moved the bid north from $60,000 by offering a series of sweeteners.


"That's right, a one-hour guitar lesson with me," Springsteen shouted. "And a ride in my Harley Davidson sidecar. So dig in, one-percenters."


That moved the needle past $150,000. He added eight concert tickets and backstage passes with a bonus tour conducted by Springsteen himself. That pushed it to $200,000, but he wasn't done.


"And a lasagna made by my mother!" he shouted as an in-house camera at the Los Angeles Convention Center cut to his 87-year-old mother Adele Ann Springsteen.


And with an extra $250,000 in the musicians charity's coffers, Springsteen sat down and spent most of the evening in the unusual role of spectator as a string of stars that included Elton John, Neil Young, Sting, Kenny Chesney, John Legend, Faith Hill and Tim McGraw, Patti Smith, Jackson Browne took the stage two nights before the Grammy Awards.


"Here's a little secret about Bruce Springsteen: He loves this," host Jon Stewart joked. "There's nothing he'd rather do than come to Los Angeles, put on a suit ... and then have people talking about him like he's dead."


Alabama Shakes kicked things off with "Adam Raised A Cain" and over the course of the evening there were several interesting takes on Springsteen's voluminous 40-year catalog of hits. Natalie Manes, Ben Harper and Charlie Musselwhite played a stripped down "Atlantic City." Mavis Staples and Zac Brown put a gospel spin on "My City of Ruins." John added a funky backbeat to "Streets of Philadelphia." Kenny Chesney offered an acoustic version of "One Step Up."


Jim James and Tom Morello burned through a scorching version of "The Ghost of Tom Joad" that brought the crowd out of their seats as Morello finished the song with a fiery guitar solo. And Mumford & Sons took it the opposite way, playing a quiet, acoustic version of "I'm On Fire" in the round that had the crowd leaning in.


Legend offered a somber piano version of "Dancing in the Dark" and Young shut down the pre-Springsteen portion of the evening with a "Born in the USA" that included two sign-language interpreters dressed as cheerleaders signing along to the lyrics.


"John Legend made me sound like Gershwin," Springsteen said. "I love that. Neil Young made me sound like the Sex Pistols. I love that. What an evening."


Springsteen spoke of the "miracle of music," the importance of musicians in human culture and making sure everyone is cared for. And he joked that he somehow ended up being honored by MusiCares, a charity that offers financial assistance to musicians in need run by The Recording Academy, after his manager called up Grammys producer Ken Ehrlich to seek a performance slot on the show in a "mercenary publicity move."


In the end, though, he was moved by the evening.


"It's kind of a freaky experience, the whole thing," Springsteen said. "This is the huge Italian wedding Patti (Scialfa) and I never had. It's a huge Bar Mitzvah. I owe each and every one of you. You made me feel like the person of the year. Now give me that damn guitar."


He asked the several thousand attendees to move toward the stage — "Come on, it's only rock 'n' roll" — and kicked off his five-song set with his Grammy nominated song "We Take Care Of Our Own." At the end of the night he brought everyone on stage for "Glory Days."


___


Online:


http://grammy.com


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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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In Nigeria, Polio Vaccine Workers Are Killed by Gunmen





At least nine polio immunization workers were shot to death in northern Nigeria on Friday by gunmen who attacked two clinics, officials said.




The killings, with eerie echoes of attacks that killed nine female polio workers in Pakistan in December, represented another serious setback for the global effort to eradicate polio.


Most of the victims were women and were shot in the back of the head, local reports said.


A four-day vaccination drive had just ended in Kano State, where the killings took place, and the vaccinators were in a “mop-up” phase, looking for children who had been missed, said Sarah Crowe, a spokeswoman for the United Nations Children’s Fund, one of the agencies running the eradication campaign.


Dr. Mohammad Ali Pate, Nigeria’s minister of state for health, said in a telephone interview that it was not entirely clear whether the gunmen were specifically targeting polio workers or just attacking the health centers where vaccinators happened to be gathering early in the morning. “Health workers are soft targets,” he said.


No one immediately took responsibility, but suspicion fell on Boko Haram, a militant Islamist group that has attacked police stations, government offices and even a religious leader’s convoy.


Polio, which once paralyzed millions of children, is now down to fewer than 1,000 known cases around the world, and is endemic in only three countries: Nigeria, Pakistan and Afghanistan.


Since September — when a new polio operations center was opened in the capital and Nigeria’s president, Goodluck Jonathan, appointed a special adviser for polio — the country had been improving, said Dr. Bruce Aylward, chief of polio eradication for the World Health Organization. There have been no new cases since Dec. 3.


While vaccinators have not previously been killed in the country, there is a long history of Nigerian Muslims shunning the vaccine.


Ten years ago, immunization was suspended for 11 months as local governors waited for local scientists to investigate rumors that it caused AIDS or was a Western plot to sterilize Muslim girls. That hiatus let cases spread across Africa. The Nigerian strain of the virus even reached Saudi Arabia when a Nigerian child living in hills outside Mecca was paralyzed.


Heidi Larson, an anthropologist at the London School of Hygiene and Tropical Medicine who tracks vaccine issues, said the newest killings “are kind of mimicking what’s going on in Pakistan, and I feel it’s very much prompted by that.”


In a roundabout way, the C.I.A. has been blamed for the Pakistan killings. In its effort to track Osama bin Laden, the agency paid a Pakistani doctor to seek entry to Bin Laden’s compound on the pretext of vaccinating the children — presumably to get DNA samples as evidence that it was the right family. That enraged some Taliban factions in Pakistan, which outlawed vaccination in their areas and threatened vaccinators.


Nigerian police officials said the first shootings were of eight workers early in the morning at a clinic in the Tarauni neighborhood of Kano, the state capital; two or three died. A survivor said the two gunmen then set fire to a curtain, locked the doors and left.


“We summoned our courage and broke the door because we realized they wanted to burn us alive,” the survivor said from her bed at Aminu Kano Teaching Hospital.


About an hour later, six men on three-wheeled motorcycles stormed a clinic in the Haye neighborhood, a few miles away. They killed seven women waiting to collect vaccine.


Ten years ago, Dr. Larson said, she joined a door-to-door vaccination drive in northern Nigeria as a Unicef communications officer, “and even then we were trying to calm rumors that the C.I.A. was involved,” she said. The Iraq and Afghanistan wars had convinced poor Muslims in many countries that Americans hated them, and some believed the American-made vaccine was a plot by Western drug companies and intelligence agencies.


Since the vaccine ruse in Pakistan, she said, “Frankly, now, I can’t go to them and say, ‘The C.I.A. isn’t involved.’ ”


Dr. Pate said the attack would not stop the newly reinvigorated eradication drive, adding, “This isn’t going to deter us from getting everyone vaccinated to save the lives of our children.”


Aminu Abubakar contributed reported from Kano, Nigeria.



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U.S. Use of Mexican Battery Recyclers Is Faulted





United States companies are sending spent lead batteries to recycling plants in Mexico that do not meet American environmental standards, according to an environmental agency created under the North American Free Trade Agreement, putting Mexican communities at risk.




In a blistering report submitted this week, the agency, the Commission for Environmental Cooperation, notes that the United States does not fully follow procedures common among developed nations that treat international battery shipments as hazardous waste. It faults environmental agencies on both sides of the border for lapses in regulation and enforcement. Cross-border trade in lead batteries increased by up to 525 percent from 2004 to 2011, the report said.


The report, which has been circulating in draft form, has been forwarded to the governments of the United States, Canada and Mexico, which have 60 days to object to its publication. An estimated 20 percent of lead acid batteries from the United States now go to Mexico for recycling, according to trade statistics.


“There needs to be better coordination between government agencies and better cross-border tracking,” said Evan Lloyd, who was the agency’s executive director until late last year and oversaw the yearlong study.


The report highlighted a number of shortcomings: Customs data on the number of batteries crossing the border did not mesh with counts by the United States Environmental Protection Agency. Though the E.P.A. requires notice of batteries leaving the United States, there was no effort to make sure that they had arrived at qualified recyclers in Mexico. The data that battery companies sent to the E.P.A. about exports consisted of “piles of paper,” Mr. Lloyd said, and it was never amassed into an electronic database that would be “useful to regulators.”


Almost all lead acid batteries used in the United States are recycled to extract the lead for reuse because lead is a dangerous pollutant and because it is a valuable commodity. Lead batteries are used in vehicles, cellphone towers and wind turbines.


Since 2008, new United States limits on lead pollution have made domestic recycling complicated and costly. That has helped propel the recycling trade to Mexico, both legally and illegally, environmental groups say, because that country has less stringent limits for lead pollution, and far less vigorous enforcement.


“There’s a pretty consistent pattern suggesting that exports are the direct result of U.S. emissions standards,” said Perry Gottesfeld, executive director of Occupational Knowledge International, which has led the campaign against lead poisoning internationally. Mr. Gottesfeld noted that a Mexican plant owned by a major American recycler, Johnson Controls Inc., puts out more than 30 times as much lead emissions as its newest plant in the United States.


“What Mexico needs to do is to get its recycling up to U.S. standards, and the U.S. needs to do a much better job of tracking batteries overseas,” he said. In an e-mail, Johnson Controls, based in Milwaukee, said it was “modernizing and reinvesting” in the Mexican facility, acquired in 2005, “to reduce its environmental footprint.”


The report was initiated in response to a report by Occupational Knowledge International and Fronteras Comunes, a Mexican environmental group, as well as to an investigative article in The New York Times, Mr. Lloyd said. Soil collected by The Times in a school playground near a recycling plant outside Mexico City was found to have lead levels five times those allowed in the United States.


Lead poisoning causes high blood pressure, kidney damage and abdominal pain in adults, and serious developmental delays and behavioral problems in young children. When batteries are broken for recycling, the lead is released as dust and, during melting, as lead-laced emissions.


In the United States, recyclers operate in highly mechanized, tightly sealed plants, with smokestack scrubbers and extensive monitors to detect lead release. Plants in Mexico vary greatly in safety standards, and in some, the recycling process is little more than men with hammers smashing batteries and melting down their contents in furnaces.


In recent months, there have been new efforts to curb the flow of batteries south of the border, though many battery makers have fought that. In response to a draft of the report released late last year, Battery Council International, an industry group, said it opposed “the creation of additional burdensome certification programs.”


Last year, the United States General Services Administration, which is responsible for federal vehicles, asked ASTM International, an independent standards agency, to explore a voluntary standard for battery recycling.


But that effort came to naught after the proposal was voted down at an open meeting attended by representatives from industry, government and environmental groups in December. Of the 103 people at the meeting, 49 worked for Johnson Controls.


This article has been revised to reflect the following correction:

Correction: February 9, 2013

An earlier version of this article misstated part of the name of an American recycler cited by Perry Gottesfeld, executive director of Occupational Knowledge International, as the owner of a Mexican plant that puts out more than 30 times as much lead emissions as the company’s newest plant in the United States. The American recycling company is Johnson Controls Inc., not Johnson Controls International.



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Postal Service Posts Loss of $1.3 Billion in First Quarter



WASHINGTON — The Postal Service’s financial woes continued in the first quarter of this year as the agency continues to wait for Congressional action to address its mounting debt. The Postal Service posted a loss of $1.3 billion in the first quarter as mail volume continued to decline.


Total mail volume fell to 43.5 billion pieces from 43.6 billion in earlier year, agency officials told members of the Postal Board of Governors, which oversees the agency. The board, which told the agency to speed up measures to cut costs two weeks ago, endorsed the post office’s recent move toward suspending mail delivery on Saturday.


The data presented by the post office did show a slight increase in advertising mail from the 2012 election. The agency’s packaging and shipping service continues to grow, increasing 4 percent in the first quarter.


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