Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Majority Back Clinton for Presidential Bid in 2016

Kevin Lamarque/AP Photo

Carried by a new high in personal popularity and broad approval of her work as secretary of state, Hillary Clinton closes out her diplomatic career with majority support as a candidate for president in 2016.

Fifty-seven percent in the latest ABC News/Washington Post poll say they’d back a run by Clinton to succeed Barack Obama, vs. 37 percent opposed. That includes a broad gender gap – 66 percent support for Clinton among women, dropping to 49 percent among men.

See PDF with full results, charts and tables here.

Clinton is expected to step down soon from her leadership of the State Department, a position she accepted after narrowly losing the Democratic presidential nomination to Obama in 2008. She’s demurred on the prospect of another bid for the presidency.

Clinton’s fared well during her tenure at State; 68 percent approve of her work, second only to Colin Powell among the last five secretaries of state. (He managed a remarkable 85 percent approval in 2002 and 2003.) Similarly, two-thirds in this poll, produced for ABC by Langer Research Associates, see Clinton favorably overall, numerically a new high in her long public career as first lady, U.S. Senator, presidential candidate and top U.S. diplomat.

Clinton’s recovered from personal favorability as low as 44 percent in April 2008, during her presidential run; she also dropped that low in June 2003, when she was discussed as a possible candidate in the 2004 presidential race, and in June 1996, during the Whitewater controversy. Those dips underscore the potential risks should she climb back into the political fray.

In another sign of the challenges of a political candidacy, intensity of sentiment is better for Clinton personally, and as secretary of state, than it is for her as a candidate. Her “strongly” favorable rating and strong approval of her job performance outnumber her strong negatives, in both cases, by more than 2-1 margins. Strong support for her as a candidate also outweighs strong opposition, but much more narrowly, by 9 percentage points, 36 to 27 percent.

2016 and GROUPS – Politics are comparative, so actual support for Clinton as a candidate would depend more than anything on her opponents, in the Democratic primaries and general election alike. That said, having 57 percent willing to give you a look (55 percent among registered voters) is not a bad starting point – and the differences among groups are telling.

In addition to the gender gap there are sharp differences between age and racial groups, generally similar to Obama’s support patterns. Young adults, age 18 to 29, support Clinton for president by nearly 2-1; that falls to an even split among seniors. And while she gets 52 percent support among whites, that jumps to 70 percent among nonwhites, a strongly Democratic group.

Clinton does less well among nonwhites than did Obama, who won re-election with 80 percent of their support last month. That said, while majorities of white men and married men say they’d oppose a Clinton candidacy, she’s backed by more than six in 10 white women and married women – two groups that Obama lost.

Among other groups, support for Clinton in 2016 tops out at eight in 10 Democrats and liberals, vs. 23 and 24 percent of Republicans and strong conservatives, respectively. About two-thirds of moderates and six in 10 independents say they’d support a Clinton candidacy.

It’s hard to see Clinton winning 23 percent of Republicans in an actual campaign; no Democrat has come close to that mark in exit polls dating back 36 years. That’s another sign that, while currently her numbers are positive, actually running for president can be messier than it looks from a popular perch at Foggy Bottom.

METHODOLOGY – This ABC News/Washington Post poll was conducted by landline and cell phone Nov. 28-Dec. 2, 2012, among a random national sample of 1,020 adults. Results have a margin of sampling error of 4 points. The survey was produced for ABC News by Langer Research Associates of New York, N.Y., with sampling, data collection and tabulation by SSRS/Social Science Research Solutions of Media, Pa.

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Syrian army pounds Damascus rebel districts

BEIRUT (Reuters) - Syrian government forces bombarded rebel districts near Damascus on Tuesday in a sustained counter-attack to stem rebel gains around President Bashar al-Assad's power base.

The fighting around Damascus has led foreign airlines to suspend flights and prompted the United Nations and European Union to reduce their presence in the capital, adding to a sense that the fight is closing in.

The army fightback came a day after the Syrian foreign ministry spokesman was reported to have defected in a potentially embarrassing blow to the government.

The Syrian Observatory for Human Rights said 200 people were killed across Syria on Monday, more than 60 of them around Damascus. Assad's forces bombarded districts to the south-east of the capital on Tuesday, near to the international airport, and in the rebel bastion of Daraya to the south-west.

In central Damascus, shielded for many months from the full force of a civil war in which 40,000 people have been killed, one resident reported hearing several loud explosions.

"I have heard four or five thunderous blows. It could be barrel bombs," she said, referring to makeshift bombs which activists say Assad's forces have dropped from helicopters on rebel-dominated areas.

The mainly Sunni Muslim rebel forces have made advances in recent weeks, seizing military bases, including some close to Damascus, from forces loyal to Assad, who is from Syria's Alawite minority linked to Shi'ite Islam.

Faced with creeping rebel gains across the north and east of the country, and the growing challenge around the capital, Assad has increasingly resorted to air strikes against the insurgents.

Amid talk that troops had also moved chemical weapons, U.S. President Barack Obama again warned Assad against using them.

The Foreign Ministry in Damascus said on Monday it would never use chemical weapons against Syrians. The statement was issued by an unnamed ministry source after the disappearance of spokesman Jihad Makdissi.

A diplomat in the Middle East said Makdissi had left the country and defected, while the British-based Observatory said it had information that he flew from Beirut on Monday afternoon heading for London.

In Beirut, a diplomat said Lebanese officials had confirmed that Makdissi spent several days in Beirut before leaving on Monday, but could not confirm his destination.

"We're aware of reports that he has defected and may be coming to the UK. We're seeking clarification," a Foreign Office spokeswoman in London said.

Makdissi was the public face to the outside world of Assad's government as it battled the 20-month-old uprising. But he had barely appeared in public for several weeks before Monday's report of his defection.

He had little influence in a system largely run by the security apparatus and the military. But Assad's opponents will see the loss of such a high profile figure, if confirmed, as further evidence of a system crumbling from within.

UN, EU REDUCE PRESENCE

The United Nations and European Union both said they were reducing their presence in Syria in response to the escalated violence around the capital.

A spokesman for U.N. humanitarian operations said the move would not stop aid deliveries to areas which remained accessible to relief convoys.

"U.N.-funded aid supplies delivered through SARC (Syrian Arab Red Crescent) and other charities are still moving daily where the roads are open," Jens Laerke told Reuters in Geneva.

"We have not suspended our operation, we are reducing the non-essential international staff."

Three remaining international staff at the European Union delegation, who stayed on in Damascus after the departure of most Western envoys, crossed the border into Lebanon on Tuesday after pulling out of the Syrian capital.

An EU official said they would move to Brussels or Beirut.

The Syrian army appears to have focused most of its energy on Damascus, where rebels have been planning to push into the capital from the surrounding suburbs.

Neither side appears to have the upper hand in the fighting and a previous attempt by rebels last July to hold ground in the city was crushed as the fighters fell back into the suburbs and nearby countryside.

Clashes continued around Damascus International Airport and along the airport highway, which has become an on-and-off battleground that forced foreign airlines to suspend flights to Damascus since Thursday evening.

EgyptAir, which tried to resume flights on Monday, had to call back a plane headed to Damascus due to the "bad security situation" around the airport, an airline official said.

Media reports citing European and U.S. officials said Syria's chemical weapons had been moved and could be prepared for use in response - a fear raised by the opposition.

White House spokesman Jay Carney said U.S. concerns about Syria's intentions regarding the use of chemical weapons were increasing, prompting Washington to make contingency plans.

Obama, who has steered clear of repeating in Syria the kind of military engagements Washington has seen in Iraq, Afghanistan or Libya, later repeated a warning to Assad - vaguely worded - against using chemical weapons to keep himself in power:

"The world is watching," Obama said. "The use of chemical weapons is and would be totally unacceptable and if you make the tragic mistake of using these weapons there will be consequences and you will be held accountable."

(Additional reporting by Khaled Yacoub Oweis in Cairo, Erika Solomon in Beirut, Mohammed Abbas in London, and Stephanie Nebehay in Geneva; Editing by Giles Elgood)

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Motor Racing: Hamilton hopes to improve on Mercedes car next season

SINGAPORE: Former Formula One world champion Lewis Hamilton hopes to improve on the Mercedes car next season.

The 2008 champion is back in Singapore to inspire and give out grants to 33 Institute of Technical Education students at the ITE College West.

The scholarship was set up by billionaire Peter Lim in 2010 to nurture local sporting talents.

When asked about the recent controversy surrounding the F1 title, Hamilton brushed it off saying he couldn't care less if Sebastian Vettel or Fernando Alonso won it.

Hamilton, who will join the Mercedes F1 team next season, admitted he had to work with a slight disadvantage at Mercedes.

"I'm really excited about it. They have a slightly worse car at the moment, but if I was able to go there and help them direct that car and turn it into a good car, that's the best feeling I could probably have, he said."

- CNA/de

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FDI in retail is death knell for small industries: Sushma Swaraj

NEW DELHI: Asserting that FDI in multi-brand retail will sound the "death knell" for small industries and traders, BJP leader Sushma Swaraj on Tuesday accused the government of having failed to evolve a political consensus on the controversial issue despite making a promise in parliament.

Initiating the debate in the Lok Sabha on FDI in retail, the leader of opposition said the government claim that foreign investment would benefit farmers, consumers and generate employment was a myth. "The government has gone back on its promise of holding consultation with all stakeholders before allowing FDI in retail. It is sad that no effort was made to make a political consensus and no meeting or any consultation was held with even the main opposition party," she said.

"International experience shows that retailers do predatory pricing, and once they come to India, they will reduce prices so that smaller shops get shut... and when the competition is over, they will raise prices and the consumers will have no option but to buy at high prices," said Sushma Swaraj in a forceful speech.

Trashing the government's assertion that foreign investment would put an end to middlemen, she said: "FDI in retail will not end the middlemen culture. There are instances like in sugar industry where there are no middlemen but still farmers have to struggle for sugarcane pricing."

She quoted Punjab's example saying Pepsi promised to buy potatoes and tomatoes from farmers, but backed out later.

Countering the government's claim that FDI will increase employment, she said: "Government says that FDI will generate employment for 40 lakh people. But going by figures if we have to employ so many people, then all companies like Wal-Mart, Tesco and others coming to India need to open over 36,000 stores in 53 cities, which means over 600 stores in each city."

Sushma Swaraj said FDI in retail would sound the death knell for small industries.

"Government says that foreign companies will have to take 30 percent product from Indian small and medium enterprises, which means 70 percent will be imported."

"Can any industry be viable at 30 percent production? And 90 percent of the imported stuff will come from China and it will generate employment and growth in China, not India," she said.

"Small shops, retailers have been wiped out in countries which allowed FDI in retail. About 12 crore people will go out of jobs in India due to the UPA government's decision to allow FDI in retail," she said.

She quoted US President Barack Obama saying small business are engines of growth in the US.

"President Obama is spearheading the campaign to encourage Americans to shop at small business establishments. When the rest of the world is questioning FDI in retail, why are we welcoming it," she said.

Sushma Swaraj also read out from a letter of Prime Minister Manmohan Singh, which he wrote as the then leader of opposition in the Rajya Sabha, in which he opposed FDI in retail.

Targeting the prime minister, Sushma Swaraj said: "PM makes bold statements like if we must go down, we'll go down fighting. You must Mr PM, but fight for the poor, not the rich, fight for country, not multi-nationals, fight for small, not big."

FDI in retail "is not the step to success and improvement but is the way to the pits of destruction".

"I am not against FDI; however I am against FDI in retail. FDI should be allowed in power, airports but not retail," she said.

"We don't want to defeat you and get our way, we want to convince you and win. But if you are adamant, we will force you," she said.

"If the government does not take the decision back, then I appeal to my colleagues here, vote with us and defeat FDI (in retail)," she added.

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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Insiders Reveal 2012 Election Secrets

Pete Souza/White House

The 2012 election cycle came full circle last week when representatives from the Obama and Romney campaigns, as well as top advisers to many of the GOP primary candidates and several influential outside groups, gathered at the Harvard Kennedy School of Government for a 2012 debrief — finally answering some of the lingering questions about the race.

On neutral ground in Cambridge, Mass., fierce rivals (think Romney campaign manager Matt Rhoades and strategist Stuart Stevens and Obama campaign manager Jim Messina and strategist David Axelrod) met for the first time since the election — and many for the first time ever.

The conference, organized by Harvard’s Institute of Politics, featured a who’s who of political bold-faced names from campaign 2012, including senior campaign aides like Romney political director Rich Beeson and pollster Neil Newhouse, Obama deputy campaign manager Stephanie Cutter and digital director Teddy Goff, Rick Santorum adviser John Brabender, former Rick Perry campaign operatives Rob Johnson and Dave Carney and even Mark Block, who ran Herman Cain’s short-lived but much-talked-about presidential bid.

Representatives from the outside groups that had so much influence — and spent so much money — on the election were also on hand, including Bill Burton, senior strategist for the pro-Obama super PAC, Priorities USA Action; Steven Law, head of the pro-Republican group American Crossroads; and Tim Phillips, president of the conservative Americans for Prosperity.

Dozens of campaign 2012 veterans and journalists were on hand for the sessions, which covered the GOP primary, the general election, campaign strategy, the debates, conventions and the emerging power of the super PACS.

Here are some of the highlights from the conference:

Romney’s Campaign Concedes Immigration Position in Primary Was a Mistake

Mitt Romney’s decision to take a hard-line stance on immigration during the GOP primary was considered a big reason for his paltry 27 percent showing among Latino voters. But, the conventional wisdom has suggested that Romney couldn’t have won the primary without drawing a strong contrast with Texas Gov. Rick Perry on this hot-button issue.

Romney campaign manager Matt Rhodes, however, says that his candidate could have won the primary without attacking Perry’s support for in-state tuition for illegal immigrants.  When asked by panel moderator Jonathan Martin of Politico whether he “regret[s] trying to outflank Perry on the right on immigration,” Rhoades took a long pause, and then shifted the conversation to Perry’s controversial statements about Social Security. Romney had attacked the Texas governor for calling the popular entitlement program a “Ponzi scheme” and a “failure.”

“In retrospect,” Rhoades said. “I believe we probably could have just beaten Perry with the Social Security hit.”

So while Rhoades never said he wished that Romney had never uttered the words, “self-deportation” he essentially conceded that he regrets the immigration position the governor took in the primary.

The Obama Campaign Only Fully Committed to Florida in Mid-September

If there was one state that the Romney campaign felt confident they were going to win it was Florida. And, until mid-September, the Obama campaign wasn’t convinced that they were going to contest the state. That changed in the aftermath of the strong convention in Charlotte, however, and the Obama campaign decided that they were going to go “full out” to win there.

Obama campaign strategist David Axelrod:

“One of the things that we had discussed internally was the state of Florida and how we were going to treat Florida. We had made a decision that we were going to wait until mid September and after the conventions to see where we were in Florida before we fully committed. We were in, we had invested a lot, but we hadn’t been in the Miami media market. When we emerged from conventions not only had we gotten a little bump, but we saw Florida remained very competitive and made the decision to go full out in Florida.”

Team Romney Never Read Clint Eastwood Speech

Romney strategist and convention director Russ Schrieffer was asked by panel moderator Ron Brownstein of National Journal if anyone actually read a copy of Eastwood’s speech. The answer: not so much.

Russ Schrieffer: “I said [to Eastwood] are you going to do what we talked about, are you going to talk about what you talked about at these fundraisers. And he looked at me and said.. ‘Yep.’ ”

Laughter followed Schrieffer’s comments to which he replied:

“It’s Clint Eastwood, you argue with him.”

Republicans Are Worried (And Rightly So) About the Technology Gap With Democrats: 

Jon Huntsman’s campaign manager Matt David noted that “one area we should freak out about is technology. The GOP is far behind there.”

The Obama campaign used social media as a means to an end — using technology as a way to recruit, persuade, target and turn out voters.  Obama’s digital campaign guru Teddy Goff pointed to the power of Facebook in helping to find a previously unreachable group of potential voters: the friends of those who were already voting for the President.

In 2008, said Goff, they found that “99 percent of our email list voted.” As such, Goff said, “We entered into this election, with an understanding that anyone we were talking to directly, the vast majority were voting for us. So the question was … how can we serve them with stuff that will make them go out and get their friends.” And, Obama’s Facebook fans were a great place to start. Obama’s 33 million Facebook fans globally are friends with 98 percent of the U.S. Facebook population, Goff said.

Facebook also helped the campaign track down their coveted 18-to-29-year-old cohort. Goff explained that they were unable to reach half of their 18-to-29 GOTV targets by phone because they didn’t have a phone number for them. But, he said, they could reach 85 percent of that group via a Friend of Barack Obama on Facebook. “We had an ability to reach those people who simply otherwise couldn’t be reached,” Goff said.

Was the Romney High Command Really and Truly Shocked on Election Night? 

Neil Newhouse, Romney pollster:

“Here’s what we saw in the data: you have to give credit to the Obama campaign for undercutting it. We saw in the last two weeks, an intensity advantage, a campaign interest advantage, an enthusiasm advantage for Republicans and Mitt Romney. … Just the same as we saw four years ago on behalf of Barack Obama. We thought it would tilt the partisan make-up of the electorate a couple points in our direction.

“We weren’t surprised by racial composition; we were surprised by the partisan composition. … The real hidden story here on our side, the number of white men who didn’t vote in this election compared to four years ago was extraordinary. And these white men were replaced by white women. We were taking a group we won by 27 points and replacing them with a group we won by 12-14 points.”

Perry Should Have Waited Until Late Fall, Not Summer, to Jump In:

Perry strategist Dave Carney said the biggest tactical mistake made by Perry was that “we should have started years ago.” Perry, as governor in a state with a part-time legislature, “had a lot of time on his hands” — he should have used that time, and his role as RGA chair, to meet donors and travel the country before 2011. Once Perry decided to get in, however, Carney argues the Perry should have waited until mid-October or November to get into the race. That extra few months, said Carney, “would have given us more time to be prepared and do the groundwork that was necessary on the issues.”

What Role Did Karl Rove Play With Republican Outside Groups Like American Crossroads, Which He Co-founded?

Steven Law, president and CEO of American Crossroads and president CrossroadsGPS:

“Karl … recognized it was really important to not simply have an organization exist in a particular cycle for a tactical use but to … start to build enduring institutional strength on the right the way that we saw the unions providing that for the Democrats. … And then there were certain other parts that I think Karl really gets credit for. The first is encouraging us to reach out to other center-right groups and to try to start to collaborate where we were legally permitted to do so to share information and encourage people to pull the oars in the same direction. On the fundraising side both he and Ed [Gillespie] and then later on Haley Barbour were all tremendously instrumental in harvesting their Rolodexes and relationships. Karl is a guy that’s got tremendously good ideas, and again, not so much on the tactical side but more kind of broad strategic moments and was a tremendously useful and valuable source of ideas along the way.”

Bill Burton, senior adviser, Priorities USA Action:

“He also helped us raise money. I probably e-mailed out every one of his columns to our donors — our high-dollar list — to point out what they were saying on the Republican side and how confident Rove was. … When he would go on TV bursting with confidence about Romney winning, that little click went around every single time. Karl Rove is an enduring figure for both sides.”

After Rove’s Appearance on Fox News on Election Night, Is He Discredited Within the Republican Party?

Steven Law:

“Absolutely not. We all get our turn in the barrel.”

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Netanyahu brushes off world condemnation of settlement plans

JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu on Sunday brushed off world condemnation of Israel's plans to expand Jewish settlements after the Palestinians won de facto U.N. recognition of statehood.

"We will carry on building in Jerusalem and in all the places that are on the map of Israel's strategic interests," a defiant Netanyahu said at the weekly cabinet meeting.

In another blow to the Palestinian Authority in the West Bank, Israel announced it was withholding Palestinian tax revenues this month worth about $100 million.

Israel said the reason for the move was a Palestinian debt of $200 million to the Israeli Electric Corporation, an obligation that has existed for some time.

Finance Minister Yuval Steinitz cautioned last month that if the Palestinians went ahead with the U.N. bid Israel would "not collect taxes for them and we will not transfer their revenues".

Yasser Abed Rabbo, a senior Palestinian official, said confiscation of the tax funds due the cash-strapped Authority, vital to meeting its payroll, was "piracy and theft".

Stung by the U.N. General Assembly's upgrading of the Palestinians' status from "observer entity" to "non-member state", Israel said on Friday it would build 3,000 more settler homes in the West Bank and East Jerusalem, areas Palestinians want for a future state, along with Gaza.

An Israeli official said the government also ordered "preliminary zoning and planning work" for thousands of housing units in areas including the so-called "E1" zone near Jerusalem.

Such construction could divide the West Bank in two and further dim Palestinian hopes, backed by the United States and other international sponsors of the Middle East peace process, for a contiguous country.

"It would represent an almost fatal blow to remaining chances of securing a two-state solution," United Nations Secretary-General Ban Ki-moon said in a statement on Sunday.

Israeli officials said it could up to two years before any building begins in E1.

At the cabinet meeting, Netanyahu said the "unilateral step the Palestinians took at the U.N. is a gross violation of previous agreements signed with Israel". The government of Israel, he added, "rejects the General Assembly's vote".

The upgrade, approved overwhelmingly, fell short of full U.N. membership, which only the Security Council can grant. But it has significant legal implications because it could allow the Palestinians access to the International Criminal Court where they could file complaints against Israel.

Israel's settlement plans, widely seen as retaliation for the Palestinians' U.N. bid, have drawn strong international condemnation from the United States, France, Britain and the European Union.

"The recognition of Palestine as a state changes a lot of the facts, and aims to establish new ones," Palestinian President Mahmoud Abbas told a cheering crowd in the West Bank city of Ramallah on his return from the United States.

"But we have to recognize that our victory provoked the powers of settlement, war and occupation."

INTERNATIONAL CRITICISM

Netanyahu heads a pro-settler government and opinion polls predict his Likud party will come out on top in Israel's January 22 parliamentary election, despite opponents' allegations that his policies have deepened Israeli diplomatic isolation.

"All settlement construction is illegal under international law and constitutes an obstacle to peace," the EU's foreign policy chief Catherine Ashton said in a statement on Sunday.

The United States said the plan was counterproductive to any resumption of direct peace talks, stalled for two years in a dispute over settlement expansion in the West Bank and East Jerusalem, both captured by Israel in a 1967 war.

Netanyahu says Israel, as a Jewish state, has a historic claim to land in the West Bank and to all of Jerusalem. Palestinians want East Jerusalem as the capital of a future state. Israel considers all of the holy city as its capital, a claim that is not recognized internationally.

Israeli Housing Minister Ariel Attias said that within weeks the government would publish invitations for bids from contractors to build 1,000 homes in East Jerusalem and more than 1,000 in West Bank settlement blocs.

"E1 is in planning, which means sketches on paper," Attias told Army Radio. "No one will build until it is clear what will be done there."

The E1 zone is considered especially sensitive. Israel froze much of its activities in E1 under pressure from former U.S. President George W. Bush and the area has been under the scrutiny of his successor Barack Obama.

Benny Kashriel, mayor of the Maale Adumim settlement adjacent to E1, told Army Radio building "will take a year or two".

Yariv Oppenheimer, head of the Israeli anti-settlement group Peace Now said: "If we build in E1 the two-state vision will truly be history ... it is a strategic point that if built, will prevent the Palestinians from having a normal state."

Approximately 500,000 Israelis and 2.5 million Palestinians live in the West Bank and East Jerusalem.

(Additional reporting by Jihan Abdalla and Ali Sawafta in Ramallah and Louis Charbonneau in New York; Editing by Jeffrey Heller and Andrew Roche)

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ICPAS encourages companies to open channels for whistle-blowing

SINGAPORE: Recent fraud cases in the public sector and alleged breaches by Singapore-listed companies like China Sky Chemical Fibre have put the spotlight on whistle-blowing.

Experts said whistle-blowing has a role to play in uncovering fraud and it is necessary to ensure that channels are open for whistle-blowing.

The Institute of Certified Public Accountants of Singapore (ICPAS) -- the largest professional body in Singapore -- has called for companies to build a culture of ethics and governance.

Organisations should also put in place systems for its staff and external parties to be more vigilant and report wrongdoings.

Experts said fostering a culture that encourages whistle-blowing may help the authorities uncover issues or discrepancies within an organisation.

ICPAS's president, Mr Ernest Kan, said: "Whistle-blowing is not a new topic, but of late, it has gained much attention judging from the number of stories that have gripped our headlines."

Some industry observers said short-seller Carson Block and his research house, Muddy Waters' recent attacks on Singapore-listed commodities trader Olam may be regarded as a form of whistle-blowing.

But many point out that Carson Block should not be considered a whistle-blower.

Instead, he is an analyst who had raised questions about the company's accounting methods in the firm's research report.

Nanyang Business School's associate professor, Ms Tan Lay Hong, said: "The matter is really very contentious because you look at what Muddy Waters is questioning. It is their way of valuing the natural resources -- which is basically mark to market."

Given the recent rise in frauds in Chinese companies such as Sino-forest, experts said whistle-blowers should actively sound the alarm for any discrepancies they spot in listed companies.

Harry Elias Partnerships' managing partner, Mr Philip Fong, said: "Whistle-blowers also have a responsibility to make sure that what they are reporting is true to their best of their knowledge and in a sense, provide as many facts as possible to substantial their complaint."

In Singapore, there are laws to protect the identities of whistle-blowers who may be a staff member or external parties.

According to lawyers, whistle-blowers who made complaints based on good faith will be insulated from defamation lawsuits.

- CNA/lp

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Arvind Kejriwal's party joins protest by Bhopal gas tragedy victims

NEW DELHI: Arvind Kejriwal-led Aam Aadmi Party today joined a protest by Bhopal gas tragedy victims near the Prime Minister's office and alleged the government's agenda of wooing foreign investments is acting as a deterrent in ensuring justice for those affected.

The party's chief spokesperson Manish Sisodia took part in the protest on the 28th anniversary of the gas tragedy and said if voted to power, the party will make a law which will put guilty corporations and their officials responsible for the tragedy behind the bars.

"I think the push for attracting foreign investments is acting as a deterrent in taking strong action against the accused company and the politicians," Sisodia told reporters.

The Bhopal gas tragedy in December 1984, the world's worst industrial disaster, killed thousands of people, with several lakhs still suffering from the lethal consequences of the gas leak.

The protesters demanded Prime Minister Manmohan Singh's intervention to punish the guilty corporations and their officials and adequately compensate all victims.

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