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Chancellor Scholz to be Questioned in German Cum-Ex tax Fraud Inquiry

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German Chancellor Olaf Scholz would be questioned for a second time on Friday by a state parliamentary committee in Hamburg investigating the sprawling Cum-Ex trading scheme to defraud tax authorities.

The Cum-Ex scandal saw traders in Europe use a legal loophole to shift shares back and forth at high speed between parties around the time dividends were paid out.

They were done in order to receive tax repayments for taxes they had not paid.

In Hamburg, the focus was on whether Scholz or other leading Social Democrats used their influence to help spare Warburg Bank from paying back 47 million euros (47 million dollars) in taxes.

Scholz, who denies using his office to help the private Hamburg-based lender that participated in the Cum-Ex scheme, has been shadowed by the affair that dates back to his time as mayor of the northern city.

A Parliamentary Investigation Committee of the Hamburg Parliament wants to know more about three meetings between Scholz and the Warburg Bank’s co-owners, Max Warburg and Christian Olearius, in 2016 and 2017.

Scholz admitted to the meetings during his first grilling but stated that he could no longer remember the content of his talks.

According to Olearius’ testimony, after the first meetings, Scholz had recommended sending a letter of defence to Hamburg’s then state minister of finance Peter Tschentscher.

In which the recovery of 47 million euros in wrongly refunded capital gains tax was presented as unjustified.

Tschentscher, who is now Hamburg’s mayor, then forwarded the letter with the request for information on the state of affairs to the tax authorities.

It was decided a short time later, contrary to original plans, to allow the €47-million claim to be scrapped due to a statute of limitations.

Tschentscher, also a member of the centre-left Social Democrats, has confirmed the forwarding of the letter.

However, he described the accusation of influence as baseless.

Opposition parties have criticised Scholz for his lack of transparency over the affair.

The leader of the Christian Democrats (CDU), Friedrich Merz, said it was implausible that Scholz has forgotten the content of the talks given their importance and the sums of money involved.

“Scholz has already had to admit to three conversations with the head of the Warburg bank when he had previously only admitted to one,’’ Merz told the Handelsblatt daily on Friday.

Fellow CDU politician Richard Seelmaecker went so far as to call for Scholz’s resignation, along with that of Tschentscher.

Left party leader Dietmar Barsch, also talking to the Handelsblatt, spoke of a cloud of mistrust hanging over the chancellor.

However, Scholz received the firm backing of Finance Minister Christian Linder, who told the Rheinische Post daily that he had absolute trust in the chancellor.

The committee was scheduled to begin questioning Scholz at 2 p.m. (1200 GMT). (NAN)

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Foreign News

Mozambique’s Death Toll from Cyclone Chido Rises to 94- Reports

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Mozambique’s disaster management agency announced that the death toll from Cyclone Chido has risen to 94.

The cyclone had made landfall in northern Mozambique a week ago and Mozambique’s institute for natural disasters on Thursday had given the death toll at 73.

The Indian Ocean archipelago Mayotte bore the brunt of the storm.

Officials in Mayotte, which is one of France’s poorest overseas territories, have only been able to confirm 35 fatalities from Chido, but some have said they fear thousands could have been killed.

Olamide Harrison, the International Monetary Fund’s Mozambique resident representative, said on Wednesday that the country’s 2024 economic growth would  likely be revised down from a previous forecast of 4.

3 per cent due to the impact of the cyclone and post-election civil unrest.

In October, Daniel Chapo, the candidate of Mozambique’s ruling party Frelimo, was declared winner of the presidential election. (Reuters/NAN)

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No talk of Ceasefire Deal Between Turkey, US-backed SDF in Northern Syria – Turkish Official

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There is no talk of a ceasefire deal between Turkey and the U.S.-backed Syrian Democratic Forces (SDF) in northern Syria, contrary to a U.S. announcement on the issue, a Turkish defence ministry official said on Thursday.

The official was responding to comments from State Department spokesperson Matthew Miller, who said a ceasefire between Turkey and the SDF around the northern Syrian city of Manbij has been extended until the end of this week.

“As Turkey, it is out of the question for us to have talks with any terrorist organisation.

“The (U.S.) statement must be a slip of the tongue,” the defence ministry official, who was speaking on condition of anonymity, told reporters.

Washington brokered an initial ceasefire between Turkey-backed Syrian rebels and the SDF forces last week after fighting that broke out earlier this month as rebel groups advanced on Damascus and overthrew Bashar al-Assad.

The SDF is an ally in the U.S. coalition against Islamic State militants.

It is spearheaded by the YPG, a group that Ankara sees as an extension of the Kurdistan Workers Party (PKK) militants who have fought the Turkish state for 40 years.

Turkey regards the PKK, YPG and SDF as terrorist groups. The U.S. and Turkey’s Western allies list the PKK as terrorist, but not the YPG and the SDF.

When asked if Ankara was considering another ground operation into northern Syria, the official said that Turkey still sees a threat to its borders from north Syria.

“Our preparations and precautions as part of the fight against terrorism will continue until the PKK/YPG lays down its arms and its foreign fighters leave Syria,” the official said.

Since 2016, Turkey has mounted four military operations in northern Syria, citing national security threats.

Turkey believes that forces of the Syrian National Army paramilitary group which it backs will “liberate” YPG-controlled areas in northern Syria, the official said, signalling that Turkey does not plan an imminent operation into the region by its military.

The SDF have close ties with Western countries including the U.S. and France. Recently, France said the political transition in Syria needed to ensure that the SDF was represented. (Reuters/NAN)

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President Yoon Banned from Leaving South Korea

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The South Korean Government ordered an overseas travel ban on President Yoon Suk Yeol.The South Korean news agency Yonhap reported on Monday that the travel ban is due to the ongoing investigation into Yoon, which involves suspicion of high treason.Yoon unexpectedly imposed martial law on his country last Tuesday night, but hours later, after massive political resistance, he repealed the order.

On Saturday evening, a motion by the opposition to impeach the president in parliament failed.
However, public pressure against the 63-year-old continues. (dpa/NAN)

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