Daesh behind Australian men’s foiled Etihad bomb plot — police

Australian Federal Police Deputy Commissioner Michael Phelan (R) and New South Wales Police Deputy Commissioner David Hudson leave a press conference after addressing the media in Sydney on Friday. (AFP / Peter Parks)
Updated 04 August 2017
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Daesh behind Australian men’s foiled Etihad bomb plot — police

SYDNEY: An Australian man sent his unsuspecting brother to Sydney airport to catch an Etihad Airways flight carrying a home-made bomb disguised as a meat mincer built at the direction of a senior Daesh (Islamic State) commander, police said on Friday.
Detailing one of Australia’s worst known militant plots, police said two men who have been charged with terror-related offenses also planned to build a device to release poisonous gas in a public area.
High-grade military explosives used to build the bomb were sent by air cargo from Turkey as part of a sophisticated plot “inspired and directed” by the militant Daesh group, Australian Federal Police Deputy Commissioner National Security Michael Phelan said.
He said the plot targeted an Etihad Airways flight on July 15 but that the bomb never made it past airport security.
“This is one of the most sophisticated plots that has ever been attempted on Australian soil,” Phelan said.
Police allege that one of the two men charged late on Thursday had been introduced to Daesh by his brother, who they said was a senior member of the group in Syria.
Communication between the accused man and Daesh began around April. Under the instruction of the unidentified Daesh commander, the men built a “fully functioning IED” (improvised explosive device).
One of the arrested men’s brother was unaware that he was carrying a bomb, disguised as a commercial meat mincer, in his luggage, and tried to check it in at the airport, police said.
“We’ll be alleging that the person who was to carry the IED on the plane had no idea they were going to be carrying an IED,” Phelan said.
There was “a little bit of conjecture” about what happened next, he said, but it appeared one of the accused then left the airport, taking the luggage with him. The man’s brother boarded the plane and has not since returned to Australia.
“I want to make it quite clear — it never got near screening. I don’t want anyone to suggest that it ... penetrated airport security layers ... because it did not. It didn’t go anywhere near it,” Phelan said.
Etihad said in a statement on Friday it had been working closely with the Australian Federal Police investigation.

Bail denied
Police arrested four men last weekend in raids across Sydney, Australia’s biggest city. One man has been released, while another is still being held without charge under special counter-terror laws.
Domestic media have identified the two men who have been charged as Khaled Khayat and Mahmoud Khayat, who each face two counts of planning a terrorist act. The charges carry a maximum punishment of life in prison.
The men did not apply for bail at a court hearing on Friday, a spokeswoman for New South Wales Courts said, and bail was formally denied. Their next scheduled court appearance is on Nov. 14.
US officials, who spoke to Reuters on condition of anonymity, said this week a foreign intelligence service had intercepted communications between the plotters in Sydney and Daesh members in Syria.
The officials declined to identify the foreign intelligence service. Another US official said the flight was bound for the Gulf.
Police also said they had uncovered the early stages of a plot to build an “improvised chemical dispersion device” designed to release hydrogen sulphide gas. Precursor chemicals and other components were found but the accused were “a long way” from making a functioning device.
Foul-smelling hydrogen sulphide, or “rotten egg gas,” is deadly in high concentrations.
Police said “preliminary and hypothetical” discussions between the accused and Daesh suggested a plan to deploy it in a crowded place, such as public transport.
Australia, a staunch US ally that has sent troops to Afghanistan and Iraq, has been on heightened alert since 2014 for attacks by home-grown militants returning from fighting in the Middle East, or their supporters.
While there have been several “lone wolf” attacks, officials say 13 significant plots have been foiled in that time.
A gunman in a 2014 Sydney cafe siege boasted about links with Daesh militants, although no direct ties with the group were established. The gunman and two other people were killed in the siege.


US halts some Medicaid payments to Minnesota, alleging fraud

Updated 6 sec ago
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US halts some Medicaid payments to Minnesota, alleging fraud

  • Human rights advocates and ​Trump critics say the administration is using fraud allegations as an excuse to target immigrants and political opponents

WASHINGTON: The Trump administration is ​withholding more than a quarter of a million dollars of Medicaid funding from Minnesota, saying the state allowed the theft of federal funds intended for social-welfare programs in the state.
US Vice President JD Vance and Dr. Mehmet Oz, who oversees the Medicaid health care program for low-income households, announced the temporary halt at a joint press conference on Wednesday, where they criticized Minnesota Governor Tim Walz’s administration for not doing enough to combat fraud.
“We are stopping the federal payments that will go to the state government until the state government takes ‌its obligations seriously,” ‌Vance said.
Walz fired back on social media, accusing the ​administration of ‌attempting ⁠to punish ​Democratic-run ⁠states.
“This has nothing to do with fraud,” he said in a post on X. “This is a campaign of retribution. Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota.”
Republican President Donald Trump’s administration has used fraud allegations in Minnesota as part of its justification for a months-long immigration crackdown in the state, during which federal agents shot and killed two US citizens, and for freezing funds meant for social programs.
Administration officials have pointed to ⁠a scandal that began during the COVID-19 pandemic, when the Department ‌of Justice indicted 47 people for allegedly defrauding $250 million from ‌a federally funded child nutrition program.
Walz, a Democrat, said ​the latest withholding of Medicaid funding would be ‌devastating for families, veterans and people with disabilities.
GOVERNMENT WITHHOLDS $259 MILLION IN MEDICAID FUNDS
Oz said ‌the federal government had paused the payment of $259 million of deferred Medicaid payments to Minnesota following an audit, and would hold on to the funds until the state government proposes “a comprehensive corrective action plan.” He added that Walz had 60 days to respond.
Vance and Oz also announced a six-month ‌nationwide moratorium blocking durable medical equipment suppliers — including for prosthesis, orthotics and other items — from enrolling in Medicaid, saying such suppliers had become ⁠a source of fraud.
Oz, ⁠citing an estimate from the non-profit Kaiser Family Foundation, said $300 billion a year is spent nationwide on health care that is “fraudulent, abusive or wasteful.” Of that, the federal portion is around $100 billion, he said.
The administration will soon announce additional actions targeting other states, he said, citing issues with health care fraud in southern Florida, California and New York.
Trump has tapped Vance to spearhead an administration “war on fraud” and created the new role of assistant attorney general for national fraud enforcement to lead the Justice Department’s investigation and prosecution of fraud that affects the federal government and federally funded programs.
Trump has repeatedly attempted to withhold funding from Democratic-led states, although such cuts have frequently been blocked by federal judges who found the actions potentially retaliatory ​or legally flawed.
Human rights advocates and ​Trump critics say the administration is using fraud allegations as an excuse to target immigrants and political opponents.