SOLIDARITY WITH THE PEOPLE OF DETROIT: OPPOSE BARCLAYS BANKRUPTCY SWAP DEAL FRI. JAN. 3

 

Retirees protest outside bankruptcy trial Aug. 19, 2013/VOD file photo
Retirees protest outside bankruptcy trial Aug. 19, 2013/VOD file photo

Oppose Barclays Swap Deal Which Will Cost the City of Detroit Its Future

Demonstrate Outside Federal Court

Friday, January 3, 8:30 a.m.

231 W. Lafayette in Downtown Detroit

Contact: 313-671 3715, 313-680-5508

bigstock-Financial-fraud-in-word-collage

Cancel Detroit’s Debt –Make the Banks Pay, They Owe Us

Hands Off Our Pensions

Save City Services and Assets

Make the Banks Fund a Jobs Program

Initiated by Moratorium NOW! Coalition (moratorium-MI.org) Stop Theft of Our Pensions Committee (S.T.O.P.) Detroit Resisting Emergency Management (d-rem.org)

A bad deal crafted by emergency manager Kevyn Orr and his multi-million dollar tax-paid consultants rewarded Bank of America and UBS, two financial institutions which have been implicated in the sub-prime mortgage debacle that devastated Detroit, over $200 million to terminate interest rate swaps that the banks have used to swindle cities across the U.S.

Protest outside Wayne County Airport June 14, 2013 as Kevyn Orr presented his Proposal to Creditors.

Protest outside Wayne County Airport June 14, 2013 as Kevyn Orr presented his Proposal to Creditors.

On December 24, the corporate media attempted to sell the public on a revised form of this same deal saying that it will save the city tens of millions of dollars. In fact, the revised deal still pays the banks $165 million to terminate these swaps that already netted these banks $250 million in profit from 2008-2012.

We must not believe these stories. These swap deals signed in 2005 and renewed in 2009, are the worst possible financial arrangements imaginable with questions still looming in regard to their legality.

Barclays Bank, another questionable firm connected with the LIBOR interest-rate rigging scandals, would pay off Bank of America and UBS through a loan to the city which nets the bank at least $4.4 million in fees.

Judge Steven Rhodes "chaired" a one-sided forum on EM's and Chapter 9 bankruptcy Oct. 10, 2012. (L to r) Frederick Headen, State Treasury Official who has been instrumental in over a dozen municipal and school takeovers; Edward Plawecki, Judge Rhodes, Douglas Bernstein and Judy ONeill. both trainers of EM's, with O'Neill a co-author of EM Public Act 4,  Charles Moore of Conway McKenzie, a chief witness for Orr in trial before Rhodes. Rhodes refused to recuse himself after VOD editor Diane Bukowski demanded he do so.

Judge Steven Rhodes “chaired” a one-sided forum on EM’s and Chapter 9 bankruptcy Oct. 10, 2012. (L to r) Frederick Headen, State Treasury Official who has been instrumental in over a dozen municipal and school takeovers; Edward Plawecki, Judge Rhodes, Douglas Bernstein and Judy ONeill. both trainers of EM’s, with O’Neill a co-author of EM Public Act 4, Charles Moore of Conway McKenzie, a chief witness for Orr in trial before Rhodes. Rhodes refused to recuse himself after VOD editor Diane Bukowski demanded he do so.

When Judge Steven Rhodes adjourned the trial examining the swap deals and Barclays loan on December 18, it was with the suggestion to Orr, Snyder, Jones Day and the corporate interests they work for, to come back with a better deal. But the arrangement they have arrived is still horrendous for the residents of Detroit. It means the City’s residents will pledge 20% of their income tax dollars for the next 5 years to pay off the banks, rather than improve services in the city.

We in the Moratorium NOW! Coalition feel that justice can only be served by the cancellation of the purported debt to Bank of America and UBS and that any funds they have collected be turned over to the people of the Detroit in an attempt to begin to repair the damage they have done to the city.

We have opposed the imposition of austerity, emergency management and forced bankruptcy over the recent period. Our organization will continue to demand that all pensions, salaries, jobs, city services and assets, including the DIA and the DWSD, remain under the ownership and control of the people of this city who have paid for them through decades of labor and taxes.

The objective of the banks including Barclays, Bank of America and UBS is to rob the city and state of Michigan even further through the imposition of usurious interests rates, the slashing of salaries and pensions and the complete disregard and disenfranchisement of the people of the city and the state.

Joe O'Keefe of Fitch Ratings and Stephen Murphy of Standard and Poor's (center), abetted by then Detroit CFO Sean Werdlow (l), foist predatory, illegal $1.5 billion UBS/SBS Pension Obligation Certificates loan on City Council Jan. 31, 2005. Likely criminal behavior: Werdlow got a top job with SBS nine months later and is now its CEO; ratings agencies had no business at table; loan was done through phony "service corporations" to avoid vote of the people and state debt ceiling laws. Swap deals were attached to the loan.

Joe O’Keefe of Fitch Ratings and Stephen Murphy of Standard and Poor’s (center), abetted by then Detroit CFO Sean Werdlow (l), foist predatory, illegal $1.5 billion UBS/SBS Pension Obligation Certificates loan on City Council Jan. 31, 2005. Likely criminal behavior: Werdlow got a top job with SBS nine months later and is now its CEO; ratings agencies had no business at table; loan was done through phony “service corporations” to avoid vote of the people and state debt ceiling laws. Swap deals were attached to the loan.

Please join us in front of the Federal Courthouse downtown when the trial on the swaps resume on Friday morning January 3. We will gather at 8:30 a.m. for a mass demonstration demanding that the illegal bank debt be canceled and the democratic rights of the people of Detroit be immediately restored.

We are also encouraging people to pack the courtroom of Judge Rhodes at 9:00 a.m. in order to witness the operations of the banks and their agents in federal bankruptcy court. Only the workers, retirees and community residents of Detroit can reverse the current crisis.

In addition, we are requesting that people around the United States and the world hold demonstrations in solidarity with the working people of Detroit on January 2 and 3 at the offices of Bank of America, UBS, Merrill Lynch and Barclays. The outcome of the struggle to save pensions, jobs, public assets and the right to vote in Detroit will set a precedent for people throughout the country.

SOLIDARITY WITH THE PEOPLE OF DETROIT — JAN. 2 & 3, 2014

Dec 30, 2013

Please let us know of your solidarity action by emailing details to moratorium@moratorium-mi.org

Solidarity Actions:

Friday, January 3

New York City – 1:00 PM

WE WON’T LET THE BANKS LOOT OUR PENSIONS OR OUR LIVES
TODAY IT’S DETROIT, TOMORROW IT’S NEW YORK
@Merrill Lynch/Bank of America Offices, 2 Financial Center, Liberty & West Street, NYC

Raleigh, North Carolina – 12 p.m. (Noon)

NORTH CAROLINA SOLIDARITY PROTEST
STAND WITH DETROIT! MAKE THE BANKS PAY!
Gather at Bank of America, 421 Fayetteville Street, Raleigh, NC

Oakland, California – 12 p.m. (Noon)

Demo at BofA near Fruitvale BART to support Detroit.
3251 International Blvd, Oakland, California 94601-2903

Facebook: Support Detroit Workers – Make the Banks Pay – demo against Bank of America

VOD story Jan. 2, 2014

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NO DETROIT POLICE STATE IN THE NEW YEAR! DUGGAN FIRED MEDICAL EXAMINER IN MALICE GREEN CASE

Mural painting of Malice Green by Detroit artist Bennie White Israel, at site of Green's beating death at 23rd and W. Warren in 1992, at the hands of killer cops Larry Nevers and Walter Budzyn.
Mural painting of Malice Green by Detroit artist Bennie White Israel, at site of Green’s beating death at 23rd and W. Warren in 1992, at the hands of killer cops Larry Nevers and Walter Budzyn.

Detroit Police Chief James Craig says that under new Mayor Duggan, EM Kevyn Orr,  Gestapo-like police raids on poor Black neighborhoods will continue

DPD has asked for suspension of monitoring of excessive force and conditions of confinement provisions of U.S. Department of Justice consent decree overseeing Detroit police

Soon to be Mayor Mike Duggan, in 2000 photo taken by Dale Rich for the Michigan Citizen.
Soon to be Mayor Mike Duggan, in 2000 photo taken by Dale Rich for the Michigan Citizen.

VOD editor, Dec. 27, 2013: I came across my file copy of the March 26, 2000 issue of the Michigan Citizen while packing to move today. The article below, written by the late Jesse Long-Bey (Omowale Ankobia), should lay to rest any illusions those who voted for soon-to-be Mayor Mike Duggan have, in particular regarding his concern for the Black majority population of Detroit. An earlier VOD article, linked below this one, discussed Duggan’s other alliances with the corporate elite who are seeking to drive poor and Black Detroiters from their city, by any means they choose.

Detroit police chief James Craig (l) with EM Kevyn Orr (r), who appointed him.
Detroit police chief James Craig (l) with EM Kevyn Orr (r), who appointed him.

That includes the vicious, Gestapo-like raids that Detroit Police Chief James Craig has visited so far on the Colony Arms Apartments on East Jefferson, the Martin Luther King Apartments on East Lafayette, and the Grand River/14th St./Joy Rd. neighborhood on Detroit’s west side. The mass media has reported these raids directly from the mouths of the police, with no investigation of whether the arrests, conducted by hundreds of police from multiple agencies, were valid, or just a means of further ridding the city of its Black and poor population, particularly its youth.

There are few job opportunities for them, half the public schools have been closed, virtually no recreation centers are left, and now the State has taken over Detroit’s Belle Isle, the largest urban island park in the country. State troopers will see to it that Detroit youth are denied access to the island to “cruise,” while suburbanite youth continue the time-honored tradition down Gratiot and Woodward Avenues.

The Oreo-cookie trio of EM Kevyn Orr, Duggan, and Chief Craig, who hails from the Los Angeles Police Department, one of the most vicious in the country, bodes ill for us in the coming year.

Duggan Jiraki headline

Duggan Jiraki 1
Duggan Jiraki 2

Related VOD stories:

http://voiceofdetroit.net/2013/08/05/no-to-duggan-napoleon-and-other-gangsta-politicians-take-it-to-the-streets-to-save-detroit/

http://voiceofdetroit.net/2013/10/22/families-demand-no-police-state-under-detroit-chief-craig-top-cops/

http://voiceofdetroit.net/2013/10/18/httpvoiceofdetroit-net20131018chief-craig-intensifies-detroit-police-state-march-mon-june-21-9-am-as-trial-of-aiyana-jones-father-opens-in-frank-murphy-to-new-dpd-hq/

http://voiceofdetroit.net/2013/04/29/police-slaughtered-matthew-joseph-23-on-detroit-streets/

Related Detroit News articles on suspension of excessive force constraints on DPD, and multi-agency raids on Detroit’s poor neighborhoods:

http://www.detroitnews.com/article/20131223/METRO01/312230068#ixzz2omAAAcIW

http://www.detroitnews.com/article/20131217/METRO01/312170088

http://www.detroitnews.com/article/20131115/METRO01/311150073

http://www.detroitnews.com/article/20131203/METRO01/312030094

Families and supporters of police victims including Aiyana Jones, Davontae Sanford, many others march at Frank Murphy Hall against new police regime Oct. 21, 2013.

Families and supporters of police victims including Aiyana Jones, Davontae Sanford, Lamar Grable, many others march at Frank Murphy Hall against new police regime Oct. 21, 2013.

The Colony Arms Apartments residents are largely poor Black youth with their children. The building is Section 8 and represents one of the few affordable places they can stay. Police raided it in November.

The Colony Arms Apartments residents are largely poor Black youth with their children. The building is Section 8 and represents one of the few affordable places they can stay. Police raided it in November.

 

Multi-agency task force raided MLK Apartments earlier this month, also home to some of the city's poorest residents.
Multi-agency task force raided MLK Apartments earlier this month, also home to some of the city’s poorest residents.
"Operation Mistletoe" on west side Dec. 17, in same Grand River neighborhood where police earlier executed Matthew Joseph, 23, with 50 gunshot wounds after a brief chase April 2, 2013.

“Operation Mistletoe” on west side Dec. 17, in same Grand River neighborhood where police earlier executed Matthew Joseph, 23, with 50 gunshot wounds after a brief chase April 2, 2013. Police claimed Joseph killed a drug dealer who was the son of a Detroit police officer. Another officer killed during the execution of Joseph was later found to have been the victim of “friendly fire.”

 

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OBAMACARE VS SINGLE PAYER–TOP 10 THINGS THE ACA GAVE US VS. THE TOP 10 WE GAVE UP

Unaffordable Health Care Act

Black Agenda ReportBy BAR managing editor Bruce A. Dixon

October 16, 2013

VOD editor’s note, Dec. 23, 2013: This article is being published belatedly, on the last day people can sign up for Obamacare. I just discovered the CHEAPEST premium available in Michigan is $281.00 a month for a single male, including those who are unemployed or working minimum wage jobs, etc. A TRAVESTY! When will the people wake up and rise up?

Universal Health care dont_be_silly_0What happens when opportunity knocks and you tell it to go away? There’s a term in economics called an “opportunity cost.” The opportunity cost of any project is the negative value of the most favorable option you gave up to get whatever you got. In the case of the so-called Affordable Care Act, aka Obamacare, the most favorable option not just thrown away, but avoided at every opportunity by the president and Democrats in Congress, despite majority support among their constituents for it at the time, was a single payer health care system.

Back in the days when President Barack Obama was still Illinois state senator Barack Obama, he too was an advocate of single payer, famously telling audiences that all we had to do was elect a Democrat House and Senate, and put a Democrat in the White House to make it happen. The electorate followed Obama’s advice, but the president went another way.

What did we gain? What did we lose? Was it worth it? You decide…

Health Care for ALL march Photo courtesy Greencare

Health Care for ALL march Photo courtesy Greencare

WHAT WE GOT WITH THE AFFORDABLE CARE ACT

WHAT WE GAVE UP WHEN OUR LEADERS REFUSED TO PUSH SINGLE PAYER

1. We got a swiss cheese system that exempts many large corporations from having to ensure their employees.

Obamacare exchangeThe only grain of truth in the mountain of partisan lies Republicans tell about the ACA is that hundreds of large corporations have indeed been granted under-the-table exemptions from the obligation to provide health insurance to many of their workers, along with regulatory loopholes which let them to raise co-pays and deductibles to levels that will compel many of their low-paid workers to take their chances on the federal and state exchanges.

A single payer system would have freed US businesses altogether from the crushing burden of providing health insurance for their employees, and left no one without health insurance.

2. We got a Medicare expansion which can be thwarted at will by current or future Republican controlled state governments.

Medicare for allThe only unalloyed silver lining of the ACA was its expansion of Medicaid, which the Supreme Court threw out, enabling state governments to selectively deny Medicaid benefits to millions.

Medicare has been settled law for 50 years. Hostile state governments have no say in any part of its funding or administration. Lowering the Medicare qualification age to include everyone is and would have been a legally bulletproof, and Supreme Court proof way of guaranteeing health care for everybody in every state. But we threw that away.

3. We got a chaotic and confusing “marketplace” [2] in which patients with little information are encouraged to conflate low insurance premiums with low-cost quality insurance.

In reality many families of modest means will choose low-cost plans with deductibles and premiums so high and coverage so limited that these costs will remain significant barriers to getting medical care even though they are technically “insured.”

Under a single payer system everyone is insured, period, from the cradle to the grave. Under single payer the experience of shopping — essentially being preyed upon in a marketplace where the sellers have all the information and all the advantages never happens.

4. We got an initially unworkable internet front end [3] for our chaotic and confusing “marketplace.”

fixing-obamacare-glitches-cartoon-morin-495x322In the first week of open enrollment in the state of New York, which is entirely cooperating with the ACA, almost none of the hundreds of thousands of eligible persons succeeded in enrolling online.

The first day of single payer customers would have to do exactly nothing. The social security system would already have your address and income data, with no confusing and predatory “marketplace” to navigate, people could go about their productive lives.

5. We gave an ongoing river of cash to private health insurance companies. Millions more are now forced to buy their crappy product, with the premiums funded by billion annually in public subsidies.

Too much profit not enough careHealth insurance executives got massive salary increases since the passage of the Affordable Care Act. Existing insurance company shareholders saw profits and stock prices spike, first with the passage of the ACA, then with the onset of open enrollment. Anticipated ballooning profits have led health insurance companies to buy back as much of their own stock as possible. What else would you expect? Health insurance company lobbyists wrote the ACA.

While the ACA pads the pockets of insurance company executives and keeps employed an army of advertisers, marketers and bureaucrats, single payer would have created a quarter million new good paying jobs delivering actual health care to people, according to the National Nurses Union.

6. The ACA gives us little or no cost control over medical care and even bans most measures that would lower the cost of prescription drugs.

With the substandard policies the most families will be able to afford, skimpy coverage, high co-pays and deductibles will continue to threaten hundreds of thousands annually with bankruptcy due to unpayable medical bills.

The US is one of the few places in the developed world in which a family can lose its home, and its children their college educations because of unpayable medical bills. We could have changed that. But we didn’t.

Claretha Briscoe, left, of Hollandale, Miss., with family. She earns too much to qualify for Medicaid but not enough to get subsidies on the new health exchange. Photo: James Patterson, NYT.

Claretha Briscoe, left, of Hollandale, Miss., with family. She earns too much to qualify for Medicaid but not enough to get subsidies on the new health exchange. Photo: James Patterson, NYT.

7. ACA only covers about half the nation’s total uninsured. It leaves two thirds of the blacks and single mothers, along with half the low-wage employed currently without health insurance untouched [4].

You can blame Republicans for blocking ACA implementation, but they’re only exploiting the opening Democrats gave them. The White House and Congressional Democrats made the decision to go for piecemeal private insurance reform rather than wholesale public health care reform.

Democrats and the entire political establishment placed much of what little credibility they had after the bank bailout behind the purported achievements of the ACA. A promise is a promise, and people DO remember broken promises. Broken promises poison the well of civic trust for established political parties and candidates.

8. We have to wait till 2016, when the Obama administration is on its way out of office for all the provisions of the ACA to take effect.

Back in 1965 and 66 it took only eleven months from the signing of the Medicare legislation by the president to the sending out of cards to patients, in an era when computers were the size of boxcars.

The same as the previous…. the ACA is for many, another broken promise.

9. Making health insurance and health care privatized commodities instead of human rights granted certain permanent rights to those profits under the currently popular conservative legal “takings” doctrine.

Corporate welfare officeConservative jurists, like the majority on the current Supreme Court believe that whatever profits corporations lose from future government action must be paid in perpetuity to those corporations. They call this the regulatory takings doctrine. ACA’s corporate welfare giveaway will make it enormously difficult to take this billion dollar candy back from health insurance scammers by making health care a human right any time in the future.

We gave up the human right to health care. In exchange we got the right of health insurance corporations to get paid. Such a deal.

10. ACA’s scheme of privatized health insurance paid for by public dollars was originally devised by one arm of the ultraconservative Heritage Foundation, and is opposed today by another arm of that same organization. Go figger.

Before it was called Obamacare nationally, it was called Romneycare in Massachusetts when that state’s governor implemented it there.

By embracing what was a short time ago a right wing pipe dream as “health care reform” Democrats and so-called progressives have given Republicans encouragement to move further to the right, opposing ACA even though it originated at the nation’s premiere right wing think tank.

Bruce Dixon, BAR managing editor
Bruce Dixon, BAR managing editor

Bruce A. Dixon is managing editor at Black Agenda Report, and a member of the state committee of the Georgia Green Party, which unashamedly and unwaveringly supported single payer health care. Contact him via this site’s contact page at www.blackagendareport.com/ or at bruce.dixon@blackagendareport.com.

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MOTHER OF DAVONTAE SANFORD, SUPPORTERS DECRY PROS. WORTHY’S CONTINUED PERSECUTION OF HER SON

Taminko Sanford-Tilmon is interviewed at rally for her son Davontae outside Frank Murphy Hall June 29, 2010.

Taminko Sanford-Tilmon is interviewed at rally for her son Davontae outside Frank Murphy Hall June 29, 2010.

Listen To Legal Internet Radio Stations with Delaproser on BlogTalkRadio with delaproser on BlogTalkRadio
Click on http://www.blogtalkradio.com/delaproser/2013/12/22/free-davontae-sanford-taminko-sanford-speaks-out to hear interview on latest developments in Davontae Sanford case, featuring his mother Taminko Sanford-Tilmon, paralegal Robert0 Guzman, and Elish Delaproser of the UK.
Vincent Smothers (l) has confessed to killings for which Davontae Sanford, shown at the age of 14, is languishing in prison. Smothers has said in an affidavit that Davontae had nothing to do with the killings.

Vincent Smothers (l) has confessed to killings for which Davontae Sanford, shown at the age of 14, is languishing in prison. Smothers has said in an affidavit that Davontae had nothing to do with the killings.

Wayne County Prosecutor Kym Worthy has now appealed a ruling by an Appeals Court that Vincent Smothers must be allowed to testify on behalf of Davontae Sanford, to the Michigan Supreme Court.

Click on link above to hear an interview with Taminko Sanford-Tilmon, mother of Davontae Sanford, who languishes in prison more than five years after he was induced, at the age of 14, to give a false confession in the drug-house murders of four people. Another man, Vincent Smothers, a confessed professional hit man, admitted to the murders and is willing to testify in the case, but Wayne County Prosecutor Kym Worthy and Circuit Court Judge Brian Sullivan have fought his testimony every inch of the way. An appeals court ruled that the testimony of Smothers and his attorney must be allowed, and remanded the case to Sullivan, but the Prosecutor has now appealed that decision to the Michigan Supreme Court.

The interview includes original rap songs about Davontae’s case and the plight of other Black youth in Detroit and across the U.S.

Related articles:

http://voiceofdetroit.net/2013/10/22/families-demand-no-police-state-under-detroit-chief-craig-top-cops/

http://voiceofdetroit.net/2013/09/27/victory-for-davontae-sanford-in-appeal-of-conviction-at-age-14-for-four-murders/

http://voiceofdetroit.net/2013/08/10/davontae-sanfords-family-hopeful-after-appeals-court-hearing/

http://voiceofdetroit.net/2013/08/10/davontae-sanfords-family-hopeful-after-appeals-court-hearing/

http://voiceofdetroit.net/2012/04/28/free-davontae-and-charles-justice-for-aiyana-and-trayvon/

http://voiceofdetroit.net/2012/04/24/stop-the-war-on-our-youth-davontae-aiyana-and-dad-trayvon-kenny-snodgrass-production/

http://voiceofdetroit.net/2012/04/28/free-davontae-and-charles-justice-for-aiyana-and-trayvon/

http://voiceofdetroit.net/2012/04/24/sanfordjones-rally-receives-broad-coverage-hit-man-signs-affidavit-to-free-davontae/

http://voiceofdetroit.net/2012/03/25/davontae-innocent-being-tortured-in-prison-judge-refuses-to-allow-real-killers-confession/

http://voiceofdetroit.net/2012/02/07/ap-newsbreak-detroit-hit-man-says-davontae-sanford-is-innocent-will-testify/

http://voiceofdetroit.net/2011/08/02/witness-detroit-hit-man-vincent-smothers-said-convicted-teen-davontae-sanford-had-no-role-in-slayings/

http://voiceofdetroit.net/2011/07/19/davontae-sanford%e2%80%99s-innocence-v-detroit-police-and-prosecutors%e2%80%99-reputations/

http://voiceofdetroit.net/2011/01/15/free-davontae-sanford/

Davontae's family, including mother Taminko Sanford-Tilman and father at right, along with supporters at Appeals Court hearing Aug. 6, 2013. Paralegal Roberto Guzman, who has tirelessly fought for Davontae's freedom, is shown in center front.

Davontae’s family, including mother Taminko Sanford-Tilman and father at right, along with supporters at Appeals Court hearing Aug. 6, 2013. Paralegal Roberto Guzman, who has tirelessly fought for Davontae’s freedom, is shown in center front.

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THEODORE WAFER TO STAND TRIAL FOR 2ND-DEGREE MURDER, OTHER CHARGES, IN DEATH OF RENISHA MCBRIDE

Renisha McBride's mother Monica McBride (center) is consoled by the teen's friend after the verdict Dec. 19, 2013. Her father Walter Ray Simmons is at left.

Renisha McBride’s mother Monica McBride (center) is consoled by the teen’s friend after the verdict Dec. 19, 2013. Her father Walter Ray Simmons is at left.

Testimony at exam showed Detroit teen shotgunned in face, died instantly, as she stood on Dearborn Heights man’s porch 

Judge Turfe: “Could [the defendant] have not answered the door, called for help, or ran to another area of the house? Instead he chose to shoot.”

Aunt: “We need to be peaceful out here. Assess the facts. Don’t hurt each other.” 

By Diane Bukowski 

December 20, 2013

20th District Court Judge David Turfe

20th District Court Judge David Turfe

DEARBORN HEIGHTS – Twentieth District Court Judge David Turfe bound Theodore Wafer, 54, the admitted killer of 19-year Renisha McBride, over for trial on all counts of second-degree murder, manslaughter and felony firearms Dec. 19. Wafer, a white Dearborn Heights resident, admitted to blasting McBride in the face with a shotgun, killing her instantly as she stood on his front porch early during the morning of Nov. 2, 2013, allegedly seeking help after a car accident.

Theodore Paul Wafer at arraignment.

Theodore Paul Wafer at arraignment.

“Uh, yes, I just shot somebody on my front porch with a shotgun banging on my door,” Wafer said during a 911 call played during his preliminary exam. “I live at 16812 W. Outer Drive. Thank you.”  He hung up the phone after the dispatcher asked what city he was in.

McBride, who was Black, was wearing a blue hoodie at the time. The case has gained national notoriety and been compared to the Trayvon Martin killing by George Zimmerman in Florida last February.

“The testimony of the first witness, Carmen Beasley, summed it up in a nutshell,” Judge Turfe said during his ruling. McBride earlier ran into cars parked in front of Beasley’s house on Bramell in Detroit.

“[Mrs. Beasley] called 911 first,” the judge noted. “She thought first, then she acted. . .The evidence shows the defendant [Wafer] made a bad decision. There were other reasonable opportunities available. I believe the prosecution has met their burden of proof.”

Carmen Beasley

Carmen Beasley

Beasley testified that she only went outside after calling 911, observing the scene, and noting a young woman who appeared to be hurt and dazed. She said she tried to help McBride, asking her to remain until EMS came. But, she said, McBride kept repeating, “I just want to go home,” then eventually wandered off down Warren Ave.

McBride’s family, including her mother Monica McBride, father Walter Ray Simmons, and other relatives and friends who sat through the one-and-a-half day preliminary exam, reacted with a combination of joy and sorrow, hugging each other and weeping outside the courtroom.

Renisha McBride's mother Monica McBride (r) and sister after verdict.

Renisha McBride’s mother Monica McBride (r) and sister after verdict.

McBride’s aunt Bernita Spinks, acting as family spokesperson, thanked God. She repeated a slogan on blue hoodies worn by the family the first day of the exam.

“Don’t shoot, call 911,” Spinks said. “We need to be peaceful out here. Assess the facts like that young lady [Beasley] did. Don’t hurt each other.”

Renisha McBride funeral program

Renisha McBride funeral program

She told VOD earlier, “Renisha didn’t rip and run in the streets. She didn’t hang out at bars. She was a homebody, a sweetheart who stayed to herself. She was loving and kindhearted. While other people her age would be home sleeping, Renisha would be at her job [as a temporary Ford worker] at 4 a.m.”

McBride’s girl friend, subpoenaed by the defense, testified that the teen became intoxicated at the home where she lived with her grandmother. She said the two friends were playing cards and a game of “shots,” in which a player drinks a shot of liquor each time (s)he loses a draw. She said she left after McBride became somewhat argumentative, but said she was never combative or hostile that night or during the years she had known her.

Both she and a co-worker of McBride’s were subpoenaed to testify by the defense, which appeared to try to focus on McBride’s inebriation as the cause of her death. Cheryl Carpenter was heard telling the co-worker that he “better show up or face contempt of court” for the second day of the hearing.

Renisha's aunt Bernita Spinks

Renisha’s aunt Bernita Spinks

Wafer’s attorney Cheryl Carpenter said, “We are disappointed with the decision. We just wish all the evidence could have been presented. But a preliminary exam hearing just has to show probable cause, a different standard than at trial.”

During the exam, Carpenter tried to introduce videotaped testimony by Wafer, given to Dearborn Heights police at their station the night of the killing, before they released him without charges. Judge Turfe ruled that the videotape was inadmissible under Michigan Court Rules because Wafer could take the stand himself and be cross-examined.

“The defense argues Michigan’s Self-Defense Act,” Judge Turfe added. “Yes, if someone knocks or bangs on your door, a reasonable person might bring a shotgun to the door to either shoot, scare the person, or defend yourself. But could [the defendant] have not answered the door, called for help, or run to another area of the house? Instead he chose to shoot.”

Wafer attorneys Matt and Cheryl Carpenter.

Wafer attorneys Matt and Cheryl Carpenter.

Testimony showed that Wafer had to go to a back bedroom to get the shotgun, open the solid front door behind a screen door, and then pull the trigger to kill McBride. A firearms expert testified that the gun used, a 12 gauge Mossberg model 500A shotgun, requires 6.5 pounds of pressure to pull the trigger, after first loading it with shotgun shells, racking it, and taking the safety off.

The defense claimed variously that the shooting was in self-defense or accidental. At one point, attorney Cheryl Carpenter said it was possible that McBride held the screen door open and tried to grab the gun. Carpenter kept referring to “smudges” allegedly found on the side and front doors, claiming they showed McBride had banged on both doors with her fist or palm.

Asst. Prosecutor Danielle Hageman-Clark with Prosecutor Kym Worthy during announcement of charges against Wafer.

Asst. Prosecutor Danielle Hageman-Clark with Prosecutor Kym Worthy during announcement of charges against Wafer.

Wayne County Assistant Prosecutor Danielle Hagaman-Clark responded that there was no evidence the smudges were even caused by a human being.

“There was no evidence that supports a break-in,” Clark said. “There was no damage to the frame or the screen [other than the hole caused by the shotgun blast], or to the door behind it. There was no testimony that Ms. McBridge banged on the doors. But even if that was the case, you don’t pick up your phone to call 911? You’re so afraid of the folk(s) that are out there, that you open up your door to invite them into the home?”

Police also testified that there was no evidence of damage or attempted damage to door locks on either the front or side doors.

Renisha McBride's car at accident scene.

Renisha McBride’s car at accident scene.

The judge noted during his ruling that all witnesses who had contact with McBride earlier that night, including those at the scene of the accident, a co-worker and a friend, said that she was never belligerent or combative, despite the fact she had been drinking and smoking marijuana. Instead, she appeared dazed and confused after the accident, during which she may have hit her head on her car’s windshield.

A photo of McBride’s car showed severe damage to the passenger side and the hood, both of which were badly crumpled. Another photo showed a large “spider” crack in the windshield. The car’s airbag was also deployed.

Death house: Theodore Wafer's home at 16812 W. Outer Drive, Dearborn Heights.

Death house: Theodore Wafer’s home at 16812 W. Outer Drive, Dearborn Heights.

Wafer, who has two drunk driving arrests on his record, was not himself tested for the use of such substances by Dearborn Heights police, who released him after he made a videotaped statement.

Under orders from Wayne County Prosecutor Kym Worthy, Dearborn Heights police returned to Wafer’s home Nov. 11 to do a more thorough crime scene investigation, the officers said. There had obviously been ample opportunity for contamination of the scene.Their original investigation focused on whether McBride had been in the home or whether there was evidence she knew Wafer previously.

Close-up of storm door replacing screen door that Wafer shot through, which was not confiscated by police until nine days after McBride's death.

Close-up of storm door replacing screen door that Wafer shot through, which was not confiscated by police until nine days after McBride’s death.

On Nov. 11, an officer testified, there was no evidence of liquor or illegal substances in the home. They did find and confiscate a crucial piece of evidence, the screen door through which Wafer allegedly shot McBride, in his basement. He had replaced it with a glass storm door in the interim.

On the first day of the exam, Wayne County Assistant Medical Examiner McBride Medical Examiner Kilak Kesha was subjected to a lengthy, grueling cross exam on his credentials by the defense, including references to his education in his native India, but Judge Turfe qualified him as an expert witness.

Kesha testified that McBride died from a shotgun wound to the face and that he classified the manner of death as homicide.

A sketch of the wound showed it extending from her left eye downwards along her nose to her upper lip, approximately 3 inches long and 2 inches wide. He said there was no evidence of “close-range” firing such as stippling or soot, but estimated that she was likely three feet from the gun when she was shot, due to the limited pattern of shotgun pellet spread. He also said it was possible that the screen door may have prevented evidence of stippling.

Firearms expert demonstrates 12 gauge shotgun Wafer used to kill McBride.

Firearms expert demonstrates 12 gauge shotgun Wafer used to kill McBride.

“The [pellets] had passed through the soft tissue and bones of the face, and entered the brain,” Kesha said. “Also in this injury were skull fractures and bleeding around the brain. The wound trail was from front to back and left to right.”

He said that the pellets had “pulpified” her brain, including the frontal, parietal and occipital lobes, making it impossible to determine any possible previous brain injury from the car accident. He said if she had endured such an injury, it could have either caused aggressiveness or passivity, but there was no evidence to support either alternative.

He said there was blood scattered on her body, including in particular on her right palm, but that after washing the body, it was evident that there were no injuries other than that to her face.

He said there was no exit wound, and that he found from 10 to 20 “grossly deformed” lead slugs inside her head, along with plastic wadding and pieces from the shotgun round, although the autopsy report itself indicates only “multiple” lead pieces.

Renisha McBride's friends show one of many hoodies with different slogans that they have had made to demand justice.

Renisha McBride’s friends show one of many hoodies with different slogans that they have had made to demand justice.

“Death would have been immediate,” he said, “even if the EMS was at the scene at the time. . .she was likely shot straight on.”

Kesha testified that McBride’s blood alcohol count was 0.218, and that “if the time of death was at 4:30 a.m,” it could have been 0.28 to 0.29 at the time of the car accident around 1 a.m. He said there was evidence McBride had smoked marijuana, with an active count of 9.2 mg, but there was no way of knowing how recently.

Over the defense’s objection, Pesha testified that there was no evidence that alcohol or marijuana had contributed to her death. Judge Turfe said in his summation that Kesha also testified McBride’s body was wet when it entered the morgue. There has been unsubstantiated speculation that she had therefore been in a body of water and was dumped on the porch. However, Dearborn Heights police disputed that in a statement, saying she was killed on the porch.

An officer testified that a “light rain” was coming down when they arrived at the scene.

Map of short distance (half-mile) between accident scene and Wafer's home.

Map of short distance (half-mile) between accident scene and Wafer’s home.

There has also been speculation about the alleged interval of approximately three hours between the car accident and McBride’s reported death. However, the time of death appears to have been based on the time that Wafer reported the killing to 911.

A map shows that the distance from Bramell and Warren, the scene of the car accident, to Wafer’s home, was approximately one-half mile, which would have involved only a short walk. No evidence was introduced from neighbors or other witnesses who may have heard the shotgun blast itself, and at what time they heard it.

The possibility remains that Wafer may have killed McBride earlier than the time he reported it, and that she lay on his front porch for some time in the light rain, which would explain the wet condition of her body.

Wafer’s arraignment on the information will take place Wed. Jan. 15, 2014  in the Third Judicial Circuit Court (Frank Murphy hall) in downtown Detroit. Judge Turfe continued his bond, set earlier by another Judge. According to some legal experts, charges of second-degree murder generally result in remand, although it is not required.

Senior Pastor Willie Rideout of All God's People Chuch.

Senior Pastor Willie Rideout of All God’s People Chuch.

Senior Pastor Willie J. Rideout of “All God’s People Ministries” in Detroit, a
prominent civil rights activist, told VOD during a break in the hearing, “The bottom line is race does play a role. If that had been me killing a white American, right away from day one I would have been arrested. But because he is white in Dearborn Heights, he has never even seen the inside of a jail cell. This shows me we need to continue pushing for this man to be convicted on all three counts. This was nothing but a terrorist attack in the state of Michigan, in the U.S. It actually seems like premeditated murder to me. It seems like the family has grounds to sue not only Wafer, but the Dearborn Heights and Detroit Police as well.”

A witness at the scene of the car accident said it took both the Detroit Police and EMS an inordinately long time to arrive after two 911 calls. If they had arrived before McBride left the scene, they might have saved her life.

Attorney Gerald Thurswell, who is representing the family on the civil side, said, “I haven’t heard anything to give justification for him blowing Renisha’s head off.”

Renisha McBride’s friends said buttons supporting justice for her can be purchased at Lovejoy’s Printing at Seven Mile and Evergreen.

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CNN OPINION: WHAT BLED DETROIT DRY? IT’S NOT PENSIONS

Protest during bankruptcy hearing in Detroit as Mich. Gov. Rick Snyder testifies/ Photo: Cheryl Labash/WW

Protest during bankruptcy hearing in Detroit as Mich. Gov. Rick Snyder testifies/ Photo: Cheryl Labash/WW

Stripping Detroit’s workers of their modest pensions will kill middle class

Most pensions are $19,000 year; $30,000 a year for police and firefighters

Culprits are sky-high financial costs, corporate subsidies, tax loopholes

Detroit bankruptcy caused by same dynamics creating inequality in the nation

Ross Eisenbrey
Ross Eisenbrey

By Ross Eisenbrey

December 17, 2013

Editor’s note: Ross Eisenbrey is vice president of the Economic Policy Institute. His views are his alone. Photos inserted by VOD.

(CNN) — A judge’s ruling that the city of Detroit can move forward with bankruptcy and strip the city’s public workers of their modest pension benefits will have a devastating impact on Detroit’s middle class — many of whom are African-American — and the city’s ability to rebuild a strong and sustainable economy.

Wall Street bankers who testified at Senate hearing.
Wall Street bankers who testified at Senate hearing.

The largest municipal bankruptcy in our nation’s history, the Detroit decision charts a course where Wall Street banks and bondholders are at the front of the payment line while city residents, police officers, firefighters and other public employees are left at the rear, with only pennies

Kevyn Orr, Detroit’s unelected emergency manager, misled the public and succeeded in setting a dangerous precedent that will have ripple effects for other cities and states still struggling to get back on their feet in the post-recession economy.

Mich. Gov. Rick Snyder and Detroit EM Kevyn Orr announce bankruptcy filing July 19, 2013.
Mich. Gov. Rick Snyder and Detroit EM Kevyn Orr announce bankruptcy filing July 19, 2013.

Michigan Gov. Rick Snyder and Orr, a former corporate bankruptcy lawyer, frequently cited the figure of Detroit’s $18 billion in long-term debt as the reason the city must declare bankruptcy. According to a recent report, “The Detroit Bankruptcy,” written by former Goldman Sachs investment banker Wallace Turbeville, not only is $18 billion an inflated and inaccurate estimation of Detroit’s long-term debt, it is irrelevant. Unlike corporations, cities cannot be liquidated, therefore cash flow, as opposed to long-term debt, is what must be addressed.

Detroit has a cash-flow shortfall of $198 million. Despite the blame placed on public pensions, the truth is that Detroit’s path to insolvency had little or nothing to do with pensions, which average just $19,000 per year for most employees and $30,000 per year for police and firefighters, who are not eligible to receive Social Security. There were several drivers of Detroit’s downward spiral:

Homeless family waiting for assistance at agency.
Homeless family waiting for assistance at agency.

A depleted tax base: The city’s wealthier white population has declined by 1.4 million since the 1950s, leaving behind an almost entirely African-American and much poorer population. The remaining tax base continues to decline as unemployment stays stubbornly high: In 2008 alone, the number of working Detroit residents dropped by roughly one-quarter, further diminishing the city’s income tax receipts. Property tax revenue also dropped precipitously as home values went through the floor.

Skyrocketing financial costs: Wall Street banks saddled Detroit with $1.6 billion in loan deals that were highly profitable for Wall Street, but exposed the city to risk it could not afford to take. The banks have already extracted $300 million from Detroit to terminate these interest rate swaps, and are posed to collect another $300 million in additional windfalls.

Detroit's City Council gave a substantial tax break to developers who are displacing 127 elderly and disabled residents from Griswold Apartments in downtown Detroit, Nov. 19, 2013.
Detroit’s City Council gave a substantial tax break to developers who are displacing 127 elderly and disabled residents from Griswold Apartments in downtown Detroit, with the concurrence of Ted Phillips (r) of the non-profit United Community Housing Coalition, the agency who was supposed to be helping them. Nov. 19, 2013.

Corporate subsidies and tax loopholes: While public workers were laid off and had salaries cut, Detroit gave away millions of public revenue in tax loopholes and subsidies to big corporations. A wealth of research finds that tax breaks like these are ineffective and it is apparent they have done little to create good jobs for Detroit residents. These tax breaks should be on the table, just like other obligations of the city in resolving the cash-flow crisis.

The dynamics at play in Detroit are the same dynamics creating the growing wealth gap and keeping our economy from making a lasting and sustainable economic recovery. While Wall Street and corporations profit handsomely from a city’s decline, public workers—the city’s middle class—have sacrificed time and again.

AFSCME and CBTU members protest lay-offs at protest May 27, 2010.
AFSCME and CBTU members protest lay-offs May 27, 2010.

In recent years, thousands of public workers were laid off, and the remaining public employees accepted a 10% pay cut, health benefit reductions and a 40% cut in future pension benefits, saving Detroit $160 million. Not only is it immoral to force the working people to give up even more in the name of fiscal responsibility, but these cuts will only burden the effort to solve the city’s long-term challenges by depressing economic activity, pushing more residents into poverty, and making it difficult to retain and attract needed workers.

Instead, Detroit’s cash flow shortfall must be addressed by fixing the problems that caused it in the first place. Banks must be told that they have profited enough from interest rate swaps that helped create this mess and will receive no more. The state needs to collaborate by increasing available revenues. Corporate tax loopholes must be closed and ineffective subsidies ended.

Like other cities, Detroit can work its way back toward a healthy local economy with good jobs, quality public services and a robust tax base. But making that happen depends on honoring the promises made to workers and ensuring that Wall Street and big corporations pay their fair share.

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KEY WITNESSES TURBEVILLE AND MCPHAIL TO DISPUTE $2.8 BILLION POC DEBT AND SWAPS IN DETROIT BANKRUPTCY TRIAL

AL WILSON’S SONG “THE SNAKE” IN VIDEO ABOVE IS AN APT ALLEGORICAL REFERENCE TO WALL STREET BANKS’ ROLE IN DETROIT.

 $350 million loan from Barclay’s to pay off other criminal banks at issue

Former Councilwoman Sharon McPhail was present when POC debt shoved down city’s throat

Wallace Turbeville authored Demos report on Detroit bankruptcy

By Diane Bukowski 

Analysis 

December 17, 2013 

Barclays under fireDETROIT – A three-day trial in bankruptcy court to determine whether Detroit should borrow $350 million from one of the world’s top criminal banks, the UK-based Barclay’s, a chief actor in the LIBOR scandal, in order to pay off $230 million in interest-rate swaps to UBS AG and the Bank of America, also convicted of numerous financial crimes, began today before U.S. District Court Judge Steven Rhodes.

Objectors have criticized the “post-petition financing” because it ties up at least 20 percent of the city’s income tax revenues as well as casino taxes for 10 years to back up the debt. It also allows doubling of the interest rates involved, among other factors.

Jones Day Detroit team

Jones Day Detroit team

Today witnesses called by Jones Day, representing Detroit under Emergency Manager Kevyn Orr, testified on behalf of the deal. They claim it will involve an 18 percent cut on the swap termination amount and save the city money. Jones Day attorneys represent the banks cited in other cases across the globe, but the firm has claimed that does not hinder its objectivity as Detroit’s litigators in the bankruptcy proceedings, just as it claimed that working for its former employee Orr was not a conflict of interest.

Sharon McPhail/Photo WJBK Fox 2 News
Sharon McPhail/Photo WJBK Fox 2 News

Rhodes is to decide Wed. Dec. 18 at 9 a.m. whether former Detroit City Councilwoman Sharon McPhail will be allowed to testify regarding the origins of the swaps in 2005. Wallace Turbeville, Senior Fellow at the Demos Project and author of a scathing November report on the Detroit bankruptcy filing, has also been called as a witness. Both are to appear on behalf of retiree David Sole, a leader in the Detroit Debt Moratorium Coalition, who is represented by attorney Jerome Goldberg.

The swaps are part and parcel of what has become a $2.28 billion Pension Obligation Certificates (POC or COPs) loan foisted on the city by UBS AG and Siebert, Brandford and Shank, whose current COO is Sean Werdlow, Detroit’s CFO at the time of the original POC loan in 2005.  Also at the Council table in 2005 were representatives of Wall Street ratings agencies Standard & Poor’s and Fitch.

David Sole
David Sole

“Many tens of billions of dollars of taxable pension fund debt transac­tions tied with swaps have been entered into by states and municipalities in the last 20 years,” Turbeville wrote in his report. “They have been severely criticized as vehicles for price gouging by banks that underwrite the bond debt and provide the swaps. . . .”

Turbeville blasted the banks for taking advantage of the likely naivete of city officials to procure the loans. Detroit defaulted on the original POC debt in 2009, after the global economic crash of 2008.  To avoid a catastrophic payment of up to $400 million to the debt-holders, the city agreed to pay higher rates on the debt, and hand over its casino tax revenues to a trustee as collateral. Orr then deliberately refused to pay a POC debt due June 14, 2013, and last month declared he would not make payments on the city’s general obligation debt as well. Fitch, poponent of the POC’s,  has therefore downgraded the city’s debt rating to D, lowest in the country.

EM Orr himself cited the POC debt as one of the chief factors in the city’s crisis, saying in his June 14 Proposal for Creditors, ‘The City has identified certain issues related to the validity and/or enforceability of the COPS that may warrant further investigation.”

WALLACE TURBEVILLE OF DEMOS IN RT VIDEO ABOVE, ON BANKS.

Turbeville goes much further.

“The banks and insurance companies involved in this trans­action had a moral and possibly legal obligation to explain its embedded risks to the city and to make certain that the city and the public under­stood those risks. And even if they did explain the risks, they also had an overriding moral obligation to refuse to do the transaction since it was so imprudent. The circumstances of the Detroit pension swap transactions were so extreme that they clearly amounted to unconscionable behavior. A court can determine whether the moral obligation was also a legal one.”

Detroiters were not allowed to vote on $1.5 billion POC debt in 2005-06.
Detroiters were not allowed to vote on $1.5 billion POC debt in 2005-06.

Turbeville adds that further illegality was likely involved in using the POC deal through non-profit service corporations created for that purpose, instead of conventional general obligation bonds payable by the city.

“. . . .the instruments bought by investors generated cash as if they were conventional bonds,” he explains. “However, the city paid under a service contract rather than straightforwardly making payments on bonds. Since its obligations were under a service contract, the city did not comply with legal requirements governing the issuance of bonds. It appears that the COPs structure was used to avoid limitations on debt, such as voter approval of the transaction and legal limits on debt, that would have applied had the conventional general obligation bond been used.”

Protesters against JP Morgan Chase debt in Birmingham, Ala.
Protesters against JP Morgan Chase debt in Birmingham, Ala.

Turbeville asserts that Orr should use the likely illegality of the POC’s and swaps as leverage to drastically cut the debt involved. In the Montgomery County, Ala. bankruptcy plan of adjustment, JPMorgan Chase was forced to forego 75 percent of sewage bond debt due to its fraudulent lending practices, exposed in lawsuits filed against it by the county.

In an affidavit, McPhail recalls City Council meetings in early 2005 where she and Council members JoAnn Watson, Barbara Rose-Collins, and Maryann Mahaffey strongly opposed the loan. While Mahaffey was in the hospital, then Council President Ken Cockrel, Jr. called out the police to roust the other three members from their homes to force a quorum at one of the first discussions Jan. 31, 2005.

“I researched other cities that entered into similar pension obligation certificates and . . . . were already encountering financial difficulties as a result,” McPhail says. “I recall representatives of the banking institutions, their law firms and representatives of the ratings agencies appearing before Council. To the best of my recollection, Fitch and Standard and Poor’s appeared before Council.

(L to r) Sean Werdlow, then Detroit CFO, Bill Doherty of Siebert, Jim O'Keefe of Fitch Ratings, Stephen Murphy of Standard and Poor's, and then Deputy Mayor Anthony Adams push Council to approve $1.5 billion POC debt Jan. 31, 2005. Photo by Diane Bukowski

(L to r) Sean Werdlow, then Detroit CFO, Bill Doherty of Siebert, Joe O’Keefe of Fitch Ratings, Stephen Murphy of Standard and Poor’s, and then Deputy Mayor Anthony Adams push Council to approve $1.5 billion POC debt Jan. 31, 2005. Photo by Diane Bukowski

“The debate between me and them related to the risk . . . associated with the potential for a financial downturn, and in light of Detroit’s precarious financial situation that had existed for years. All of the representatives of the banks continually assured Council members that there would be no risk associated with the City adopting these financial instruments.”

She goes on to state that she remembers Detroit CFO Sean Werdlow strongly pushing the loan, which was the largest of its kind in the country.

Occupy Detroit and Moratorium NOW rally to stop foreclosure at Detroit woman's home Dec. 6, 2011.
Occupy Detroit and Moratorium NOW rally to stop foreclosure at Detroit woman’s home Dec. 6, 2011.

“After this process was over, CFO Werdlow was given a lucrative job with one of the financial institutions involved in the Pension Obligation Certificates,” she says.

McPhail adds, “This process reminded me of mortgage predatory lending, where unsophisticated homeowners were placed in exotic mortgage loans, ensured there was no risk involved, and then lost their homes when the housing bubble burst [in 2008].”

In an article for The Michigan Citizen, this reporter quoted McPhail at the council table Feb. 4, 2005, telling former Mayor Kwame Kilpatrick, “This is a very risky transaction. Your own people at your economic forum called this one of the seven deadly sins of municipal finance. If the deal doesn’t do what is expected, we could face receivership under the local government Fiscal Responsibility Act. If the stock market does well, that $1.2 billion in unfunded pension liability could go away, but we’d still owe it in bonds.”

Standard and Poor's bit Detroit with downgrade after selling POC debt.
Standard and Poor’s bit Detroit with downgrade after selling POC debt.

Under pressure from the mainstream media, Wall Street and the Kilpatrick administration, which threatened downgrades of the city’s debt ratings and massive lay-offs, the Council finally caved and agreed to the deal.  At the end of 2005, however, “you knew I was a snake” Standard and Poor’s downgraded the city’s debt rating to BBB-, one step above juke level.

This reporter wrote at the time, “Despite Kilpatrick’s lay-offs of 1,396 city workers since June and recently disclosed plans to close most of the city’s recreation centers, S&P said, “The administration’s hesitancy to cut positions, as well as the inability to adjust union contracts to gain savings, has deepened the budget gap for fiscal 2006.” The agency went on to demand that city workers and retirees pay even more for their health care, although they have already shouldered increasing health care co-pays.”

UBS CEO Sergio Ermatti
UBS CEO Sergio Ermatti

In his affidavit for the court hearing, Turbeville explains, “The pension swaps were subject to termination if the city suffered a credit rating downgrade from its then current level or if an emergency manager was appointed, or if the city missed a payment, all of which happened.”

He says that UBS AG and Bank of America/Merrill Lynch had already profited from the POC swaps to the tune of $250 million from 2008-2012 alone, and should not now be demanding more.

“The emergency manager’s plan to pay the swap termination fees . . . .should be abandoned. . . .” he says. “The bank counterparties should be made to bear the  consequences of the original swap transactions . . . The alternative is to litigate these matters in the bankruptcy proceeding where they could be subject to being disallowed because of the banks’ (counterparties) unclean hands.”

Detroit retirees protest outside bankruptcy hearing.
Detroit retirees protest outside bankruptcy hearing.

Nearly all of the bankruptcy’s corporate objectors are also opposed to the Barclay’s loan, largely because it lessens their share of the pie. If the loan goes through, it will also affect funds available for the city to pay its retirees. Orr has already ceased paying anything into the pension systems.

Although he will not testify on other portions of his report in court due to the limited topic, Turbeville says adamantly that neither pension funding nor employee health care are not responsible for the city’s crisis and in fact are in line with amounts paid in other cities of comparable size. He notes that Orr’s consultants Milliman Inc. have used questionable methods to come up with a headline-grabbing amount of $3.5 billion in pension underfunding, while the actual amount is likely closer to the $800 million estimated by the pension funds actuaries.

Milliman officials in wealthy Dubai, where they have set up shop.

Milliman officials in wealthy Dubai, where they have set up shop.

He says Milliman, in its national report on public pensions, used more acceptable methods to calculate underfunding in cities other than Detroit. Both Charles Moore of Conway McKenzie and former State Treasurer Andy Dillon testified during the eligibility trial that Milliman had never given a final documented report on the city’s pension underfunding rate. Turbeville notes Orr’s likely motive in using the $3.5 billion figure is a takeover of the pension funds.

Turbeville also opposes the sale of the city’s Water and Sewerage Department, and any further cutbacks in city workers and wages, saying those actions will do nothing to increase city revenues. Turbeville says all that is needed to get the city out of bankruptcy is a mere $198 million in revenue infusion. He calls on the state of Michigan to supply those funds, since it deliberately cut Detroit’s revenue-sharing funds in order to reach a state budget surplus and get high bond ratings from Wall Street.

Related documents:

Demos Detroit bankruptcy report highlighted

DB McPhail 12 16 13 (McPhail affidavit)

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CITY COUNCIL, STATE, FEDS, NON-PROFITS IN BED WITH DEVELOPERS DESTROYING BLACK DETROIT

DAN GILBERT'S DEVELOPERS DISPLACING GRISWOLD APT. TENANTS GRIN AS TED PHILLIPS OF UCHC SUPPORTS A TAX ABATEMENT FOR THEM.

REPRESENTATIVES OF 1214 GRISWOLD, LLC, (L) WHO HAVE SEPARATE TIES TO DAN GILBERT, ARE DISPLACING GRISWOLD APT. TENANTS.THEY GRIN AS TED PHILLIPS OF UCHC (R) SUPPORTS A TAX ABATEMENT FOR THEM AT CITY COUNCIL TABLE. PHILLIPS SAID, “WE ARE THANKFUL THAT THIS IS NOT A SITUATION WHERE LOW-INCOME TENANTS ARE BRINGING DOWN PROFITS FOR BUSINESSES.”

Hearing Dec. 20 on Illitch stadium DDA approval; project 61% public $$

Tax abatement for developers in Griswold evictions, separately tied to Gilbert

Hearings on closures of historic Oakman, Davis Aerospace schools not set 

By Diane Bukowski 

December 15, 2013 

Editor’s note Dec. 16: Paula Silver, spokesman for Dan Gilbert of Quicken Loans, once again called to complain about the original version of this story, which said the 1214 Griswold developers are Dan Gilbert’s. The story has been revised to exclude that reference, although the story still maintains that Gilbert is partners with James Ketai in Bedrock Real Estate, which Silver denied is connected to the Griswold Apartments. She was asked to provide a list of the actual partners in 1214 Griswold, LLC, but has not yet done so.

1215 Griswold and Bedrock Letter/ Photo Chris and Michelle Gerard Curbed Detroit
1215 Griswold and Bedrock Letter/ Photo Chris and Michelle Gerard Curbed Detroit

Editor’s note Dec. 17: Now Rebecca Amboy of Sachse and Broder, a real estate firm whose principals are also officers in Sachse Construction, doing a major part of the renovation on Gilbert’s newly acquired buildings downtown, has called. She says the owners are 1214 Griswold Apartments LLC, whose agent is Richard Broder. A check of state records for 1214 Griswold, LLC suddenly shows that THAT entity TODAY filed an amendment to its Articles stating that as of today, that company no longer exists. Ms. Amboy has been requested to provide an actual deed or purchase document showing who the OWNER, not the agent of 1214 Griswold is. Also, who the individual who signed his name as W on the MOU for 1214 Griswold is (see 1214 Griswold MOU 2.)

An article in Curbed Detroit at http://detroit.curbed.com/archives/2013/11/gilbert.php#more says Gilbert’s Bedrock Real Estate is definitely connected to 1215 Griswold, opining “Ketai is likely Gilbert’s straw buyer, a strategy previously used to buy buildings near the Bates Garage without attracting too much attention.”

Plan to expand DDA to include Illitch Red Wings stadium and upscale residential/retail area.
Plan to expand DDA to include Illitch Red Wings stadium and upscale residential/retail area.

DETROIT – Despite their winter recess, the Detroit City Council has set two perfunctory “public” hearings on the expansion of the Downtown Development Authority (DDA) area to include a large area north of I-75. Mogul Mike Illitch plans to build his new Red Wings stadium and an upscale residential/retail development there. The total cost is $881 million, of which 61 percent is set to come from state and federal tax funds.

The hearings are scheduled for Friday, Dec. 20 at 9 a.m. and 9:05 a.m.

Art Papapanos of DDA/DEGC campaigns for billionaire Mike Illitch project.
Art Papapanos of DDA/DEGC campaigns for billionaire Mike Illitch project.

Detroit City Council President Saunteel Jenkins acceded to DDA/Detroit Economic Growth Corporation (DEGC) leader Art Papapanos’ demands at a Council hearing Nov. 19 that the approval take place by the end of the year to ensure new tax dividends for 2014. The hearings had been “inadvertently” omitted from earlier Council discussion. (See previous VOD story at http://voiceofdetroit.net/2013/09/09/illitch-plans-881-million-red-wings-stadium-project-with-public-funds-despite-detroit-bankruptcy-filing/.)

The Nov. 19 council session was a triumph for Illitch, his downtown co-czar Dan Gilbert, and Detroit Public Schools emergency manager Jack Martin and his boss, Michigan Gov. Rick Snyder. Not one Council member dissented from the corporate agenda set forth at the meeting.

Locally, Quicken Loans founder Dan Gilbert is Michigan's third wealthiest with a net worth of $3.5 billion. Pizza mogul Mike Ilitch and his family rank sixth with a net worth of $2.7 billion. -- Forbes
Quicken Loans founder Dan Gilbert is Michigan’s third wealthiest with a net worth of $3.5 billion. Pizza mogul Mike Ilitch and his family rank sixth with a net worth of $2.7 billion. — Forbes

No hearing was set as requested by many in the audience, including Elder Helen MoorE of the Keep the Vote No Takeover Coalition, on the closures of the historic Oakman Elementary School for special needs students and Davis Aerospace High School.

GRISWOLD APARTMENTS 

Representatives of 1214 Griswold, LLC, whose agent has ties to Illitch’s co-czar Dan Gilbert, left the meeting with a hefty tax abatement for their re-development of the Griswold Apartments, and eviction of up to 127 low-income senior and disabled tenants, many of whom have lived there for decades. It was unanimously approved by the Council with the apparent blessing of Attorney Ted Phillips, Executive Director of the non-profit United Community Housing Coalition. The Council had no authority to vote on the sale itself, only on a “Commercial Rehabilitation Act” tax exemption for up to ten years.

UCHC is working with the Neighborhood Service Organization (NSO), the actual signatory to the new owners’ tenant agreement, which did not show up at either Council session. UCHC’s task under a $480,000 HUD “Tenant Resource Network” grant is to find and inspect other housing for the low-income Section 8 Griswold residents, as well as residents of 17 other developments across southeastern Michigan that are opting out of federal Section 8 contracts. Such affordable housing is becoming increasingly scarce, but it does not appear that non-profits are fighting to keep it instead of scattering its residents.

James Ketai (l) with Todd Sachse, also a partner in 1214 Griswold, at gala event. Photo from Hour Magazine, which also photographed UCHC's Annual Dinner last month.
James Ketai (l) with Todd Sachse, also a partner in 1214 Griswold, at gala event. Photo from Hour Magazine, which also photographed UCHC’s Annual Dinner last month.

Although Gilbert denied involvement in the purchase of the Griswold Apartments, state records show that the agent for the newly-formed 1214 Griswold, LLC is James Ketai, a partner in Bedrock Real Estate.

“Created by Dan Gilbert, Quicken Loans’ visionary founder and Chairman, and veteran real estate entrepreneur, Jim Ketai, Bedrock is on a mission,” says that company’s brochure, posted on its website. “The company’s sole focus is to revitalize Detroit and other promising urban centers to create jobs, excitement and opportunity.”

Regarding the new owners’ planned evictions of up to 127 senior and disabled long-term residents, most of them African-American, to make way for an upscale white-dominated Capitol Park region, Councilman James Tate said, “The new developers have done a tremendous job in working with the residents who live there.”

Griswold tenants leave Council hearing Nov. 19, 2013.
Griswold tenants leave Council hearing Nov. 19, 2013.

He and Councilwoman JoAnn Watson praised the new owners’ agreement to allow 10 instead of five residents to remain on one-year “extended” HUD vouchers, which means HUD will pay almost all their new base rent of $1213. There is no guarantee they will remain after that first year.

Phillips sat at the Council table across from the developers, who smiled as he spoke.

Dan Gilbert's vision for Capitol Park, where Griswold Apartments are located.

Dan Gilbert’s vision for Capitol Park, where Griswold Apartments are located at right.

“We reached a Memorandum of Understanding which was brought to the group last week,” Phillips said. “It was signed to attach to the abatement request. There are lots of good benefits. They have moved from five to 10 tenants allowed to stay there, for the oldest residents. Their security deposits remain. The owners have met with the residents, UCHC and NSO a number of times. We have met with all who wish to stay.”

James McNeal, who has lived at Griswold Apts. for 20 years, and his friend Esther Hardy, who has lived there 30 years.
James McNeal, who has lived at Griswold Apts. for 20 years, and his friend Esther Hardy, who has lived there 30 years.

Phillips added later, “We are thankful that this is not a situation where low-income tenants are bringing down profits for businesses.”

Residents who attended the hearing largely were silent. One thanked Councilwoman Watson and another, Esther Harding, said she wanted all the residents to remain.

Afterwards, Harding, who is 92 and has lived in the building for 30 years, told VOD, “I’m not happy with it but there’s nothing I can do about it. I want as many residents as possible to remain. We are like family here.”

Her friend and co-resident James McNeal said he has lived in the building for 20 years and is retaining his own attorney due to his dissatisfaction with the agreement.

Griswold apartments map“We [the residents] have been through thick and thin,” McNeal said. “We’ve had three different managements and different security agencies. Some of the people don’t know what’s going on. There are some in convalescent homes who don’t know if they’ll be able to come back. This is nothing but discrimination. The people have been in this city and have served this city for years. But now that they want to re-do the area, they are booting the residents out. This is unfair to all of us.”

OAKMAN SCHOOL FOR SPECIAL NEEDS STUDENTS AND DAVIS AEROSPACE

Despite an audience packed with advocates for Oakman Elementary and Davis Aerospace schools, no special hearing was set to save those schools, as was done for Illitch’s project.

Elder Helen Moore took the mike first and demanded more time to speak on behalf of all the people she has represented for years. Councilman Andre Spivey, who chaired for an hour because Jenkins was late, adamantly denied her request. She was almost removed by Council police.

CC 11 17 13 HM cop
Elder Helen Moore asks for special session on school closings as Council cop approaches to remove her at Councilman Andre Spivey’s direction.

Moore then asked the Council to set a special session to deal with the schools, a request which Spivey put off for Jenkins to decide.

“Oakman Elementary was built in 1929 to serve special needs students,” Russ Bellant, president of the Detroit Library Commission,” testified. “These children are being greatly harmed by what the EM [formerly Roy Roberts, currently Jack Martin] is doing. Many of the students are blind or in wheelchairs or must use walkers. It’s clear that the city of Detroit is in the hands of the bankers.”

Aliya Moore, president of the Oakman Parents Group, told the Council, “Our children are being blatantly disrespected. We took a bus to Lansing to protest the closing at the State Board of Education. Your voice on our behalf means a lot.”

Aliya Moore, Pres. of Oakman Parents Group, at protest Aug. 28, 2013.
Aliya Moore, Pres. of Oakman Parents Group, at protest Aug. 28, 2013.

Others testified that the school is in the process of being demolished, while many of its former students are no longer attending school because school officials cannot find appropriate buildings. Architect Bill Dickens called the demolition an “outrage.”

“That school is absolutely beautiful,” Dickens testified. “It is a school that worked. It was named in honor of Dr. Charles Oakman, a visionary who championed the cause of public health in Detroit.”

Rev. Bill Wylie-Kellerman said, “The systematic destruction of Oakman is like the hundreds of other schools destroyed, while we are still paying the bonds on those schools for years to come.”

City Councilman Kenneth Cockrel, Jr. contended that the Council has no jurisdiction over DPS. But Denise Chatman of the Council’s Historic Designation Advisory Board said, “Oakman is on the National Register of Historic Places and is eligible for local designation. It is the only school remaining for children with special needs.”

Lt. Colonel Milburn of Tuskegee Airmen testifies for Davis Aerospace School
Lt. Colonel Milburn of Tuskegee Airmen testifies for Davis Aerospace School

Lt. Colonel Lawrence Milburn of the Tuskegee Airmen, in uniform, testified on behalf of keeping Davis Aerospace High School open to provide opportunities for Detroit youth to learn to become proficient in that lucrative area of employment. School officials said the Airmen, a contingent of Black pilots including the late Mayor Coleman Young who fought in World War II, give freely of their time to assist the students.

Jenkins did not set a special Council session to save the two schools, despite setting the Dec. 20 hearing for Illitch’s Red Wings project.

Related article:

http://voiceofdetroit.net/2013/11/18/developers-hud-non-profits-collude-to-move-detroit-seniors-disabled-out-of-downtown-griswold-apts/

 

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CARIBBEAN NATIONS CALL FOR REPARATIONS FROM EUROPE; REPARATIONS FOR DETROIT AND BLACKS IN U.S. ALSO NEEDED

Is Europe Ready For Reparations? CARICOM Is!
December 11, 2013

The idea of reparations for slavery has been circulating in the Caribbean for some time. But now activists are trying to put some critical mass to it by calling formally on former colonizers from United Kingdom, France, The Netherlands, and other countries to apologize and pay compensation for the colonial period. Kalilah Enriquez of CEEN News reports on a meeting held in Jamaica yesterday (see video above).

VOD: Of course, this relates directly to the struggle in the United States for reparations for the descendants of Africans here, as seen in the article by Dr. Ron Daniels below. Additionally, REPARATIONS FROM THE BANKS AND CORPORATIONS WHICH HAVE LAID WASTE TO THE NATION’S LARGEST BLACK MAJORITY CITY, AND ITS POOREST, DETROIT, MUST ALSO BE THE ORDER OF THE DAY, NOT FURTHER AUSTERITY UNDER BANKRUPTCY!

Reparations for Detroit, not bankruptcy.

Reparations for Detroit, not bankruptcy.

Revitalizing the U.S. Reparations Movement

CARICOM Initiative Could Provide the Spark
Revitalizing the U.S. Reparations Movement

[For publication the Week of October 7, 2012]

By Dr. Ron Daniels

Dr. Ron Daniels
Dr. Ron Daniels

A few days before this year’s Congressional Black Caucus Foundation, Inc. Annual Legislative Conference (CBCINC-ALC), I received a call to ask my opinion as to whether the Reparations Issues Forum should be on the agenda. The Forum has been standard fare every year as a way of promoting HR-40, the Reparation’s Study bill, championed by Congressman John Conyers, Jr., and as a vehicle to discuss strategies for the coming year. The question was understandable given the relatively moribund state of the Reparations movement in the U.S.; a reality that is the consequence of the passing/transition of some of the key leaders of the movement, the decline of reparations advocacy organizations and the difficulty of gaining traction on the issue with the first African American President in the White House.

Child in U.S. demands reparations.
Child in U.S. demands reparations.

However, none of these factors negate the validity and relevance of the issue. Therefore, I answered in the affirmative but strongly suggested that the Forum highlight events or developments that might provide a new spark to the U.S. Reparations Movement. In the past State Senator Bill Owen’s proposal that the Massachusetts legislature pay reparations to African Americans in that state; Deadria Farmer-Paellmann’s legal campaign against U.S. corporations that benefitted from slavery; the National Black United Front’s “We Charge Genocide” Petition Campaign; December 12th Movement’s Millions Reparations March; Randall Robinson’s highly acclaimed book The Debt; and, The National Coalition for Reparations for African Americans’ (N’COBRA) Reparations Legal Team are examples of actions and events that breathed life into the movement and gave it momentum at particular moments. Unfortunately, in recent years there has been no significant action or event to keep reparations on the front burner of the discourse about Black interests and aspirations. Indeed, the election of the first African American President has likely had a chilling effect in terms of advancing the issue.

Dr. Ralph Gonsalves
Dr. Ralph Gonsalves

But, as I informed the conveners of the Forum, recent developments in the Caribbean have the potential for dramatically changing the tide in the U.S. and Pan African World. Spearheaded by Dr. Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines, in July Caribbean Community (CARICOM) leaders “agreed to the formation of a region-wide Reparations Commission to seek compensation from Europe for native genocide and enslavement of Africans during colonisation.” Subsequent to this historic resolution, PM Gonsalves convened a major Reparations Conference, September 15-17th in St. Vincent. The delegates agreed to form Reparation Commissions in each Caribbean nation. In addition, PM Gonsalves and several Caribbean leaders utilized the annual convening of the U.N. General Assembly as a platform to boldly incorporate the demand for reparations into their speeches. The CARICOM Reparations Initiative is a historic development, a potential game changer, not only in terms of the potential impact on the Reparations Movement in this country, but the prospect of a resurgent progressive Pan-Africanism, with a renewed focus on the root causes of the “underdevelopment” of people of African descent on the continent and in the Diaspora.

Another development which could spark a renewed interest in the U.S. Reparations Movement is the discovery of a little known speech by Dr. Martin Luther King, Jr. that addresses the issue. On the morning of the Reparations Issues Forum, I received an urgent email and voicemail message from SIRIUS/XM Radio Talk Show Host Mark Thompson, urging me to listen to an excerpt of a speech by Dr. King. Mark obviously felt it would be relevant to the subject. He was absolutely correct. In the space of two minutes, Dr. King recounts a range of benefits provided to European immigrants and White farmers like the Homestead Act that were systematically denied to the formerly enslaved Africans. In so doing, he emphatically lays out the equivalent of a rationale for reparations and concludes by proclaiming, when we come to Washington …we’re coming to get our check.” When we played the clip the audience was stunned and exhilarated. Never before had the participants heard such a ringing rationale for reparations, coming from the lips of the world’s most revered civil rights leader! Everyone instantly recognized that these words from Dr. King could be invaluable in providing legitimacy to the righteous demand for reparations.

reparations2I was delighted to moderate the Reparations Issues Forum this year because the developments above could well breathe new life into the quest for Africans in America to achieve a yet unfulfilled aspiration – reparations to repair the cultural, psychological, spiritual and physical damage to our people as a direct consequence of the holocaust of enslavement. Moreover, with the input of a Panel consisting of City Councilwoman JoAnn Watson of Detroit, Dr. Julianne Malveaux, Black America’s leading political-economist and Attorney Nkechi Taifa, Senior Policy Analyst, Open Society Foundations, an action agenda to revitalize the U.S. Reparations Movement was devised.

The late "Reparations Ray" Jenkins of Detroit, the father of the modern U.S. reparations movement.
The late “Reparations Ray” Jenkins of Detroit, the father of the modern U.S. reparations movement.

The action agenda includes: the widespread circulation of Dr. King’s speech which provides a rationale for reparations; an Open Letter to President Barack Obama from Congressman John Conyers, Jr. requesting that the President support HR-40, the Reparations Study Bill; a series of four community-based regional hearings on HR-40, chaired by Congressman Conyers with a stellar Panel of Resource People like Dr. Claud Anderson, Dr. Ray Winbush, Dr. Julianne Malveaux, Professor Charles Ogletree, Dr. Iva Carruthers, Attorney Nkechi Taifa and Councilwoman JoAnn Watson to mention a few; utilizing Dr. King’s assessment as a framework, the convening of a Special Hearing in Selma, Alabama with Black farmers, many of whom still feel aggrieved despite the settlement with the Department of Agriculture; an invitation extended by Congressman John Conyers, Jr. to Dr. Ralph Gonsalves to be a Special Guest and Keynote Speaker for the 2014 CBCINC-ALC Reparations Issues Forum; finally, the Institute of the Black World 21st Century (IBW) will contribute to the process by establishing a Reparations Resource Center on its website www.ibw21.org where interested parties can access important articles, documents, speeches and other relevant materials that might be useful for education, advocacy and organizing

The late Venezuelan Pres. Hugo Chavez, Cuban leader Fidel Castro, and Bolivian President Evo Morales are shown in Havana. Pres. Morales confronted a European Union conference with a stunning demand for reparations. (See link to his speech below.)

The late Venezuelan Pres. Hugo Chavez, Cuban leader Fidel Castro, and Bolivian President Evo Morales are shown in Havana.
Pres. Morales confronted a European Union conference with a stunning demand for reparations. (See link to his speech below.)

Inspired by the incredible developments noted above and armed with a feasible action agenda, we have an opportunity to revitalize the Reparations Movement in the U.S. In remembrance of our ancestors, a luta continua … the struggle continues!

Dr. Ron Daniels is President of the Institute of the Black World 21st Century and Distinguished Lecturer at York College City University of New York. His articles and essays also appear on the IBW website www.ibw21.org and www.northstarnews.com . To send a message, arrange media interviews or speaking engagements, Dr. Daniels can be reached via email at info@ibw21.org

– See more at: http://ibw21.org/vantage-point/revitalizing-the-u-s-reparations-movement/#sthash.5bmfQTQy.dpuf

http://theblacklistpub.ning.com/group/obituaries/forum/topics/remember-ray-jenkins-the

http://voiceofdetroit.net/2013/09/01/i-too-can-demand-repayment-evo-morales-pres-bolivia/

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MANDELA’S LEGACY EXTENDS FROM SOUTH AFRICA, THE CONTINENT, TO THE WORLD

Nelson Mandela and Fidel Castro meet in Durban in 1998 for Non-Aligned Movement Summit.

Nelson Mandela and Fidel Castro meet in
Durban in 1998 for Non-Aligned Movement Summit.

By Abayomi Azikiwe

(Photos and videos below added by Diane Bukowski and Kenny Snodgrass of Voice of Detroit.)

December 11, 2013

workers world logoNelson Mandela’s death has drawn responses from throughout the U.S. and the world. To oppressed and working people, Mandela was a symbol and example of self-sacrifice and lifelong commitment to revolutionary change.

Placing his legacy in a revolutionary perspective is important in countering the corporate media view, which attempts to strip away the actual history of collective struggle in South Africa and its influence on the international movements against racism, imperialism and class exploitation.

The young Nelson Mandela was an athlete and boxer.

The young Nelson Mandela was an athlete and boxer.

The struggle for freedom and liberation in South Africa began in 1652, when the Dutch settler Jan Van Riebeeck landed at the Cape of Good Hope already accompanied by enslaved Africans from other regions of the continent.

Mandela was born on July 18, 1918, in the Eastern Cape region of South Africa at Mvezo in Umtatu, and would grow up in the village of Qunu. He came from a traditional Xhosa royal lineage among the Thembu people but sought to expand his horizons and went to live in Johannesburg, the commercial and industrial center of the white-dominated settler state.

Mandela was an athlete and became a boxer. He would study law and later join the African National Congress with the aegis of his lifelong friend Walter Sisulu. In subsequent years he became a leading member of the South African Communist Party (SACP), serving on its central executive committee.

Winnie and Nelson Mandela with South African Communist Party President Joe Slovo.

Winnie and Nelson Mandela with South African Communist Party President Joe Slovo.

During the 1940s, the ANC formed the Youth League, which advanced a “Program of Action” calling for the transformation of the organization into a mass national liberation movement seeking to directly confront the system of racism and class oppression. The ANC had been formed in 1912 in the Free State province of South Africa in an effort to bring all of the African nationalities into one organization to more effectively fight colonial domination.

Earlier in 1910, the Union of South Africa had been formed. This represented a compromise between the English and the Dutch descendants, the Boers, who had fought a bloody three-year war from 1899 to 1902 over which European oppressor nation would control this vast agricultural and mineral-rich land. The Union of South Africa represented an unholy alliance of the white settlers who sought to further rationalize a system of land confiscation, mineral extraction and the exploitation of the labor of the majority African population.

Zulu warriors valiantly fought British and French troops in the 19th century, many times triumphing. Here, the Prince Imperial, son of Napoleon, is killed in 1879.

Zulu warriors valiantly fought British and French troops in the 19th century, many times triumphing. Here, the Prince Imperial, son of Napoleon, is killed in 1879.

The ANC drew upon the legacy of struggle waged by various African nationalities such as the Basotho, Zulu and Xhosa during the 19th and early 20th centuries, fusing the legacy of these wars of resistance and liberation into a unified national movement.

Under the Union, the British became dominant in government. However, after World War II, the Nationalist Party of the Boers took power in 1948, codifying the system of racism, national oppression and class exploitation as “apartheid.” Many within the Afrikaner (Dutch descendants, or Boers) population had supported the Nazis.

The ANC was representative of the awakening of all Africans throughout the continent from the ravages of slavery and colonialism over the course of the 20th century. In the immediate aftermath of World War II, the mass determination of the African people grew more militant. Independence movements were formed all throughout the region, from Egypt and Algeria in the North; through Ghana, Guinea, Mali and others in the West; all through Central Africa, including Congo; across to the East, with uprisings in Kenya and Tanzania; and down to the South, where Angola, Mozambique, Zimbabwe, Namibia, South Africa and others would arouse hundreds of millions in the mass, labor and armed struggles aimed at national liberation.

The armed phase of the African revolution

Defiance Against Unjust Laws Campaign, South Africa, 1952

Defiance Against Unjust Laws Campaign, South Africa, 1952

Some states in Africa gained their independence through mass political resistance absent of an organized armed struggle. Nonetheless, many others were forced to take up arms and fight the colonialists and their allies for national liberation.

A wave of repression swept South Africa in response to the “Defiance of Unjust Laws Campaign” from 1952 to 1956. The top leaders of the ANC, the SACP, the Congress of Democrats, the Colored People’s Congress, the Federation of South African Women, the South African Indian Congress and the South African Congress of Trade Unions were charged with treason. A show trial, staged by the apartheid regime, lasted from 1956 to 1960. This treason trial, involving 156 organizers, collapsed in 1960 with the acquittals of Mandela and many other leaders.

Sharpeville massacre of 69 peaceful protesters against pass laws, by South African military in 1960 (Photo: ANC archives)

Sharpeville massacre of 69 peaceful protesters against pass laws, by South African military in 1960 (Photo: ANC archives)

After the Sharpeville massacre of March 21, 1960, prompted the banning of the ANC, the Pan-Africanist Congress and others, Mandela and his comrades decided to organize Um Khonto We Sizwe (Spear of the Nation), a guerrilla unit that would attack power stations, government buildings, rail lines and other symbols of white-minority rule.

Poster from ANC archives.

Poster from ANC archives.

In May 1961, amid a general strike, in an interview with a British news reporter at an undisclosed location in South Africa, Mandela announced that “it is futile to continue talking nonviolence to an enemy” only concerned with maintaining control through violence.

Mandela left the country secretly while under banishment in South Africa and traveled to other parts of the continent, as well as England. He studied guerrilla warfare and military affairs in Ethiopia and at an Algerian National Liberation Front (FLN) training camp in Oujda, Morocco. In Ethiopia, Mandela addressed the Conference of the Pan-African Freedom Movement of East and Central Africa in January 1962.

During the PAFMECA Conference, Mandela, representing the ANC, told the delegates: “During the past 10 months I moved up and down my country and spoke to peasants in the countryside, to workers in the cities, to students and professional people. It dawned on me quite clearly that the situation had become explosive.”

He continued: “It was not surprising therefore when one morning in October last year [1961] we woke up to read press reports of widespread sabotage involving the cutting of telephone wires and the blowing up of power pylons. The government remained unshaken and white South Africa tried to dismiss it as the work of criminals.

Johannesburg, Dec. 16, 1961: Umkkonto we Sizwe launches urban guerilla warfare.

Johannesburg, Dec. 16, 1961: Umkkonto we Sizwe launches urban guerilla warfare.

“Then on the night of 16 December last year the whole of South Africa vibrated under the heavy blows of Umkhonto we Sizwe. Government buildings were blasted with explosives in Johannesburg, the industrial heart of South Africa; in Port Elizabeth; and in Durban. It was now clear that this was a political demonstration of a formidable kind, and the press announced the beginning of planned acts of sabotage in the country.

“It was still a small beginning because a government as strong and as aggressive as that of South Africa can never be induced to part with political power by bomb explosions in one night and in three cities only. But in a country where freedom fighters frequently pay with their very lives and at a time when the most elaborate military preparations are being made to crush the people’s struggles, planned acts of sabotage against government installations introduce a new phase in the political situation and are a demonstration of the people’s unshakeable determination to win freedom whatever the cost may be. The government is preparing to strike viciously at political leaders and freedom fighters. But the people will not take these blows sitting down.” 

Demonstration against guilty verdict at Rivonia treason trial.

Demonstration against guilty verdict at Rivonia treason trial.

Mandela later re-entered South Africa and was captured in August 1962. He would reveal during the Rivonia Treason Trial of 1964 that “in Africa I was promised support by such men … [as] Ben Bella, now President of Algeria. … It was Ben Bella who invited me to visit Oujda, the Headquarters of the Algerian Army of National Liberation, the visit which is described in my diary, one of the Exhibits.”

What has not been mentioned by corporate television networks that have lavished praise on Mandela in his death is that the U.S. Central Intelligence Agency is said to have played a critical role in the ANC leader’s capture. This claim has been reported in numerous sources even within the South African press.

Open the CIA files on MandelaIn a June 10, 1990, article published in the New York Times on the eve of a visit by Mandela to the U.S., just four months after his release from 27 years in prison, David Johnston wrote that a report from the Cox news service revealed that “the intelligence service, using an agent inside the African National Congress, provided South African security officials with precise information about Mr. Mandela’s activities that enabled the police to arrest him.” http://www.nytimes.com/1990/06/10/world/cia-tie-reported-in-mandela-arrest.html.

The article noted that “the report, scheduled for publication on Sunday, quoted an unidentified retired official who said that a senior CIA officer told him shortly after Mr. Mandela’s arrest: ‘We have turned Mandela over to the South African Security branch. We gave them every detail, what he would be wearing, the time of day, just where he would be.’”

Protester demands end to U.S. investment in South Africa.

Protester demands end to U.S. investment in South Africa.

Johnston also wrote that “Mark Mansfield, a spokesman for the agency, declined to comment on the news-service report. ‘As a matter of policy, we do not discuss allegations of intelligence activities.’”

This collaboration between the racist apartheid regime and U.S. intelligence was replicated in the economic sphere. At the height of the apartheid system, nearly 400 corporations inside the U.S. had direct investments in racist South Africa and its colony of Namibia, which gained independence in 1990.

Isolating apartheid domestically and internationally

The investments of U.S. imperialism and its allies in the West became a major focus of the ANC and its supporters both inside and outside of South Africa. In support of the mass movement for national liberation, millions inside the U.S. and around the world joined the various campaigns for the divestment from apartheid and the release of its political prisoners. Nelson Mandela became a household word during the mid-1980s as a symbol of resistance by the South African people against national oppression.

It was the combined efforts of the armed, mass and labor struggles inside South Africa, in conjunction with the international movement of solidarity, that proved to be decisive in the unbanning of the ANC, the SACP and other organizations, the release of political prisoners, the return of exiles from outside the country and the eventual negotiations for the holding of democratic elections. Those elections resulted in the ascendancy of the ANC to state power in April-May 1994.

Another decisive factor in the total liberation of Southern Africa was the defeat of the racist South African Defense Forces in southern Angola during 1987-1988. Popular Movement for the Liberation of Angola leader Dr. Agostino Neto had asked Cuba to intervene in Angola in November 1975, when the independence of the former Portuguese colony, newly won through armed struggle, was imperiled.

Cuban troops support the MPLA in Angola.

Cuban troops support the MPLA in Angola.

In late 1975, Cuba deployed 55,000 of its own troops, which fought alongside the MPLA military forces and others to defeat the SADF for the first time. Cuban internationalist forces would remain in Angola for 13 years, until the apartheid army was defeated by the combined forces of Cuban President Fidel Castro’s army, the Angolan military, the armed wing of the South West Africa People’s Organization, the People’s Liberation Army of Namibia and Um Khonto We Sizwe, which had bases inside Angola. Some 350,000 Cubans would serve in Angola between 1975 and 1989, making a monumental contribution to the African Revolution.

Mandela as ANC President of South Africa

Nelson Mandela supported Muammar Gadhafi's Libya from the U.S. bombing of his home and murder of his daughter in 1987 through the U.S.-NATO invasion of recent years. Gadhafi, like Mandela, believed in providing for the needs of the people across the African continent, but both were thwarted by U.S. economic and military intervention, including the demise of the socialist countries which had supported the ANC, under pressure from the U.S.

Nelson Mandela supported Muammar Gadhafi’s Libya from the U.S. bombing of his home and murder of his daughter in 1986 through the vicious, racist U.S.-NATO invasion of recent years. Gadhafi, like Mandela, believed in providing for the needs of the people across the African continent, but both were thwarted by U.S. economic and military intervention, including the demise of the socialist countries which had supported the ANC, under pressure from the U.S.

Mandela would serve one five-year term as president of the Republic of South Africa, from 1994 to 1999. His administration built homes for 2 million South Africans, provided electricity and running water to millions more, opened up the health care system to Africans, instituted affirmative action programs to empower the African majority and developed a constitution that outlawed the death penalty as well as racial and gender discrimination.

Mandela PalestineUnder Mandela, South Africa would serve as an example to all oppressed and struggling peoples throughout the world. The country continues today to be in solidarity with the liberation movement of the Palestinians and the people of the Western Sahara, and maintains positions in support of African unity and economic integration.

Today the chair of the African Union Commission is a South African woman, Dr. Nkosazana Dlamini-Zuma. South Africa plays a leading role within the African Union, is a member of the BRICS Summit (Brazil, Russia, India, China and South Africa), and occupies a leading role in the regional Southern African Development Community and other international bodies.

Although the struggle inside South Africa and throughout the region is by no means complete, the legacy of Mandela through the ANC, SACP, COSATU and other affiliated organizations will live on. The neocolonial phase of post-independence Africa will also pass as the contradictions within world capitalism become more pronounced and unbearable, as did apartheid.

A Tribute To The Honorable Nelson Rolihlahla Mandela – – A No Struggle, No Development Production!

By Kenny Snodgrass

Kenneth Snodgrass, VOD videojournalist.

Kenneth Snodgrass, VOD videojournalist.

Activist, Photographer, Videographer, Author of
1} From Victimization To Empowerment… www.trafford.com/07-0913 eBook available at www.ebookstore.sony.com
2} The World As I’ve Seen It! My Greatest Experience!
{Photo Book}
YouTube: I have over 486 Video’s, 346 Subscribers, over 222,000 hits, now averaging 10,000 monthly on my YouTube channel @ www.YouTube.com/KennySnod

 

Statement of the South African Communist Party on Nelson Mandela

Che GuevaraThe true revolutionary is guided by great feelings of love.— Che Guevara

Last night, the millions of the people of South Africa, majority of whom the working class and poor, and the billions of the rest of the people the world over, lost a true revolutionary, President Nelson Rolihlahla Mandela, Tata Madiba.

The South African Communist Party joins the people of South Africa and the world in expressing its most sincere condolences to Ms. Graca Machel and the entire Mandela family on the loss of what President Zuma correctly described as South Africa’s greatest son, Comrade Mandela.

We also wish to use this opportunity to express our solidarity with the African National Congress, an organisation that produced him and that he also served with distinction, as well as all his colleagues and comrades in our broader liberation movement. As Tata Madiba said, “It is not the kings and generals that make history but the masses of the people, the workers, the peasants. …”

Tribute from East African country.

Tribute from East African country.

The passing away of Comrade Mandela marks an end to the life of one of the greatest revolutionaries of the 20th century, who fought for freedom and against all forms of oppression in both their countries and globally. As part of the masses that make history, Comrade Mandela’s contribution in the struggle for freedom was located and steeled in the collective membership and leadership of our revolutionary national liberation movement as led by the ANC — for he was not an island. In Comrade Mandela we had a brave and courageous soldier, patriot and internationalist who, to borrow from Che Guevara, was a true revolutionary guided by great feelings of love for his people, an outstanding feature of all genuine people’s revolutionaries.

At his arrest in August 1962, Nelson Mandela was not only a member of the then underground South African Communist Party, but was also a member of our Party’s Central Committee. To us as South African communists, Comrade Mandela shall forever symbolise the monumental contribution of the SACP in our liberation struggle. The contribution of communists in the struggle to achieve the South African freedom has very few parallels in the history of our country. After his release from prison in 1990, Comrade Madiba became a great and close friend of the communists till his last days.

Venezuela's Vice-President Jorge Arreaza pays his respects at the coffin of former South African President Mandela, as Mandela lies in state at the Union Buildings in Pretoria. REUTERS/Yves Herman

Venezuela’s Vice-President Jorge Arreaza pays his respects at the coffin of former South African President Mandela, as Mandela lies in state at the Union Buildings in Pretoria. REUTERS/Yves Herman

The one major lesson we need to learn from Mandela and his generation of leaders was their commitment to principled unity within each of our Alliance formations as well as the unity of our Alliance as a whole and that of the entire mass democratic movement. Their generation struggled to build and cement the unity of our Alliance, and we therefore owe it to the memory of Comrade Madiba to preserve the unity of our Alliance. Let those who do not understand the extent to which blood was spilt in pursuance of Alliance unity be reminded not to throw mud at the legacy and memory of the likes of Madiba by being reckless and gambling with the unity of our Alliance.

The SACP supported Madiba’s championing of national reconciliation. But national reconciliation for him never meant avoiding tackling the class and other social inequalities in our society, as some would like to make us believe today. For Madiba, national reconciliation was a platform to pursue the objective of building a more egalitarian South African society free of the scourge of racism, patriarchy and gross inequalities. And true national reconciliation shall never be achieved in a society still characterized by the yawning gap of inequalities and capitalist exploitation.

In honour of this gallant fighter, the SACP will intensify the struggle against all forms of inequality, including intensifying the struggle for socialism, as the only political and economic solution to the problems facing humanity.

For the SACP, the passing away of Madiba must give all those South Africans who had not fully embraced a democratic South Africa, and who still in one way or the other hanker to the era of white domination, a second chance to come to terms with a democratic South Africa founded on the principle of majority rule.

We call upon all South Africans to emulate his example of selflessness, sacrifice, commitment and service to his people.

The SACP says, “Hamba kahle Mkhonto!” [“Go well, brave warrior!”]

Umkhonto we Sizwe ANC Choir seventies

Also see from the pages of Workers World

  1. Tributes to South African hero, Nelson Mandela
  2. Tributes to South African hero, Nelson Mandela, at 95
  3. Mandela: ‘Great loss for struggle of Palestinian people’
  4. Tribute from the Congress of South African Trade Unions (COSATU) to Nelson Mandela
  5. Conditions that led to South Africa massacre
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