Over $200 billion potentially stolen from US COVID relief programs — watchdog

A model of a coronavirus virion sits on top of a car advertising home test kits for COVID-19 in Boston, Massachusetts, U.S., onn May 24, 2022. (REUTERS/File)
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Updated 28 June 2023
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Over $200 billion potentially stolen from US COVID relief programs — watchdog

  • At least 17 percent of all funds related to two government schemes disbursed to potentially fraudulent actors
  • United States is probing many fraud cases pegged to US government assistance programs

WASHINGTON: Over $200 billion from the US government’s COVID-19 relief programs were potentially stolen, a federal watchdog said on Tuesday, adding that the US Small Business Administration (SBA) had weakened its controls in a rush to disburse the funds.

At least 17 percent of all funds related to the government’s coronavirus Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) schemes were disbursed to potentially fraudulent actors, according to a report released Tuesday by the SBA’s office of inspector general.

Over the course of the pandemic, the SBA disbursed about $1.2 trillion of EIDL and PPP funds.

The SBA disputed the more than $200 billion figure put forward by the watchdog and said the inspector general’s approach had significantly overestimated fraud.

The agency said its experts put the potential fraud estimate at $36 billion and added that over 86 percent of that likely fraud took place in 2020 when the administration for former President Donald Trump was in office. President Joe Biden took office in January 2021.

The fraud estimate put forward by the inspector general for the EIDL program stood at more than $136 billion while the PPP fraud estimate was $64 billion.

The United States is probing many fraud cases pegged to US government assistance programs. In May 2021, Attorney General Merrick Garland launched a COVID-19 Fraud Enforcement Task Force.

Last year, the US Justice Department tapped federal prosecutor Kevin Chambers to lead its efforts to investigate alleged fraud schemes intending to bilk government pandemic assistance programs.

In September 2022, the inspector general for the US Labor Department said fraudsters likely stole $45.6 billion from the United States’ unemployment insurance program during the coronavirus outbreak by applying tactics like using Social Security numbers of deceased individuals.

Also in September, federal prosecutors charged dozens of defendants, who were accused of stealing $250 million from a government aid program that was supposed to feed children in need during the pandemic.

Earlier this year, a separate watchdog report said the US government likely awarded about $5.4 billion in COVID-19 aid to people with questionable Social Security numbers.


Malaysia targeting Gulf trade and tech ties at WEF, minister says

Updated 9 sec ago
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Malaysia targeting Gulf trade and tech ties at WEF, minister says

  • Malaysia is also exploring investment and technology-sharing deals in artificial intelligence and the digital economy

RIYADH: Malaysia is looking to partner with Gulf-based companies on renewable energy, the country’s minister of investment has said.

Speaking to Arab News at the two-day World Economic Forum meeting in Riyadh, Tengku Zafrul Aziz said that about 50 Malaysian companies are in discussions to invest in renewable energy and share technologies.

“There is a lot of demand now for green renewable energy. We want partners who can not only go by funding, as we have funding capabilities, but also more in terms of technology and know-how,” he said.

“Many GCC companies who have already invested in this area are willing to share technology pools and invest with our funds, our companies, and our sovereign wealth fund.”

Malaysia is also exploring investment and technology-sharing deals in artificial intelligence and the digital economy.

“We also got interest from GCC companies on that matter and they have invested a lot in this technology. Now we want to learn and partner, so that the infrastructure that we build using digital platforms can be applied using applications that some of these companies already have.”

The World Economic Forum meeting in the Saudi capital is focusing on global collaboration, growth and energy for development — themes that the Malaysian minister said were “apt” given the geopolitical challenges in the region.

“This is a platform where we can share ideas about how we can improve the standards of living for all and not just focus on issues that may benefit a few,” he added.

“We want to see growth, especially in terms of trade and economy, and that must be beneficial to all. We want to see growth that is sustainable and equitable — growth that is inclusive. This is an opportunity to strengthen trade and investment linkages between the GCC and Southeast Asia.

“We need to strike the right balance when we talk about the quantity of the growth vs. the quality of that growth.”

Aziz said that parties are also exploring new multilateral trade agreements between the ASEAN union and the GCC, in an effort to launch a more comprehensive economic partnership agreement.

“This will deepen the relationship between countries in terms of economy, which will bring about peace. Malaysia is an open economy,” he said.

“While we continue to engage China as Malaysia’s largest trade partner, we are looking to engage other countries in constructive ways.”


Iran slams crackdown on US student protesters

Updated 24 min 55 sec ago
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Iran slams crackdown on US student protesters

  • The demonstrations began at Columbia University in New York and have since spread across the country

Tehran: Iran on Monday criticized a police crackdown in the United States against university students protesting against the rising death toll from the Israel-Hamas war in the Gaza Strip.
“The American government has practically ignored its human rights obligations and respect for the principles of democracy that they profess,” foreign ministry spokesman Nasser Kanani said.
Tehran “does not at all accept the violent police and military behavior aimed at the academic atmosphere and student demands,” he said.
American universities have been rocked by pro-Palestinian demonstrations, triggering campus clashes with police and the arrest of some 275 people over the weekend.
The demonstrations began at Columbia University in New York and have since spread across the country.
In Iran, hundreds of people demonstrated in Tehran and other cities on Sunday in solidarity with the US demonstrations.
Some carried banners proclaiming “Death to Israel” and “Gazans are truly oppressed,” state media reported.
The Gaza war broke out after the October 7 attack by Palestinian militants on Israel which killed 1,170 people, mostly civilians, according to Israeli figures.
Tehran backs Hamas, but has denied any direct involvement in the attack.
Israel’s retaliatory offensive against Hamas has since killed at least 34,488 people in Gaza, mostly women and children, according to the Hamas-run territory’s health ministry.
“What we have seen in American universities in recent days is an awakening of the world community and world public opinion toward the Palestinian issue,” Kanani said.
“It is not possible to silence the loud voices of protesters against this crime and genocide through police action and violent policies.”


Pedro Sanchez stays on as Spain’s prime minister after weighing exit

Updated 39 min 21 sec ago
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Pedro Sanchez stays on as Spain’s prime minister after weighing exit

  • Sanchez had surprised foes and allies when earlier said he considers quitting
  • He described the court investigation of his wife Begona Gomez for influence peddling and business corruption as orchestrated by his opponents

MADRID: Spain’s Prime Minister Pedro Sanchez said on Monday he had decided to continue in office, days after abruptly announcing he was considering his future following the launch of a corruption investigation against his wife.
The center-left prime minister, 52, had surprised foes and allies alike when he said on Wednesday he was taking time from public duty to consider quitting. He described the court investigation of his wife Begona Gomez for influence peddling and business corruption as orchestrated by his opponents.
Sanchez met King Felipe VI on Monday — a step that would have been necessary should he have decided to resign — but announced in a televised address that he had informed the monarch of his decision to stay on. He had been encouraged to stay by widespread expressions of support over the weekend, Sanchez said.
“I have decided to go on, if possible even stronger as prime minister. This is not business as usual, things are going to be different,” he said in a national broadcast.
His announcement that he might quit had caused further turmoil in Spanish politics, where a fractious parliament has struggled to form coalition governments after close elections. Should a new election have been required, it would have been the fourth in five years.
The opposition will try to exploit the sign of indecision from Sanchez, but the impact may be limited because Spain’s political landscape is already so polarized, said Ignacio Jurado, political science professor at Madrid’s Carlos III University.
“His credibility is already hotly contested and voters have already given it to him or taken it away,” he said. “As a leader he has shown a weakness and it’s something that the opposition will exploit a lot.”


Scottish First Minister Humza Yousaf resigns

Updated 9 min 1 sec ago
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Scottish First Minister Humza Yousaf resigns

  • Humza Yousaf said he would continue as first minister until a successor has been elected.

LONDON:  Scotland’s First Minister Humza Yousaf resigned as leader of the Scottish National Party (SNP) on Monday and said he had ordered a contest be held to select a replacement.
“I’ve concluded that repairing our relationship across the political divide can only be done with someone else at the helm,” Yousaf said at a press conference in Edinburgh.
“I have therefore informed the SNP’s national secretary of my intention to stand down as party leader and ask that she commences a leadership contest for my replacement as soon as possible.”
He said he would continue as first minister until a successor has been elected.
Last week, Yousaf abruptly ended a power-sharing agreement between his Scottish National Party (SNP) and the Green Party, in the hopes that he could lead a minority government — but opposition parties have tabled a vote of no confidence.
The pro-independence SNP’s fortunes have faltered amid a funding scandal and the resignation of a party leader last year, while there has been infighting over how progressive its pitch should be as it seeks to woo back voters.
Just days ago, Yousaf said he was “quite confident” that he could win the no confidence vote called by political opponents, but by Monday, his offer of talks with other parties to try to shore up his minority government seemed to be faltering.
The leadership crisis and a second no-confidence vote against the Scottish government deepens problems faced by Yousaf’s Scottish National Party, which is losing popular support after 17 years of heading the Scottish Government.
Earlier this month, polling firm YouGov said the Labour Party had overtaken the SNP in voting intentions for a Westminster election, for the first time in a decade.
The leader of the Scottish Greens, Patrick Harvie, told BBC radio there was nothing Yousaf could say to persuade his party to support the first minister in the parliamentary confidence vote, leaving Yousaf with few options.
The vote is due to take place later this week.
A victory for Labour in Scotland in Britain’s next national election — expected later this year — would significantly bolster the party’s chances of taking power from Prime Minister Rishi Sunak’s Conservative Party.
If Yousaf loses, parliament would have 28 days to choose a new first minister before an election is forced.
Former SNP leader John Swinney has been approached by senior party figures to become an interim first minister in the event of Yousaf being forced from office, the Times newspaper said, adding that Swinney was reluctant to step up because of personal circumstances.
Yousaf, who previously held health and justice ministerial briefs in the Scottish Government, succeeded former SNP leader Nicola Sturgeon as first minister in March 2023.
She resigned last year and has since been embroiled in a party funding scandal with her husband, who was charged this month with embezzling funds. Both deny wrongdoing.


Global teacher shortage needs more than AI: WEF panelists

Updated 29 April 2024
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Global teacher shortage needs more than AI: WEF panelists

  • Tailored solutions required for less-developed nations, says expert
  • AI must complement education and training, changing of curricula

RIYADH: The global shortage of teachers will not be remedied solely through the use of artificial intelligence, according to education experts and decision-makers at the World Economic Forum’s Special Meeting in Riyadh.

“Teachers is the biggest problem at the moment for the education sector in low- and middle-income countries,” Laura Frigenti, chief of the Global Partnership for Education platform, told the panel on Sunday.

Gaspard Twagirayezu, Rwanda’s education minister, said that AI can revolutionize education and provide solutions for the global shortage of teachers.

“Of course, AI and technology are not going to replace teachers,” he added. “We can make sure that teachers are properly educated.”

“Here, we are trying to talk about how AI can help in producing education materials for the teachers so that we do not have all these expensive training sessions that we all have to go through.”

Stressing that AI can support teachers in the classroom, Twagirayezu explained that “teachers can be enabled to learn on their own using AI.”

Frigenti said that when it comes to harnessing the power of artificial intelligence in education, “there is not a kind of a one-size-fits-all technology that you can just import into one particular country.”

“You have to start from the conditions of that country and think in terms of a solution,” she continued. If there are no tailored solutions, this would “create a much bigger gap between a part of the world that can invest $8,000 per child per year in education and a part of the world that barely manages to invest $80.”

She added: “And that is going to create all sorts of socio-economic disparities, inequalities within society, (and) inequalities between the Global North and Global South.”

Frigenti added: “We integrate the improvements that technology and AI can add to the way in which the sector performs or is managed to a bigger way of thinking about the sector’s needs to transform, which includes a lot — changing the curricula (and) thinking about what you have to do for the (teachers) problem.”

The panel discussion, titled “Is Education Ready for AI,” featured speakers including Rudayna Abdo, founder and CEO of Thaki; Jack Azagury, group CEO of Accenture; and Deemah Al-Yahya, secretary-general of the Digital Cooperation Organization.