Monthly Archives: September 2013

IRS targeted groups for “anti-Obama rhetoric”?

September 18, 2013
by Ed Morrissey

Did the IRS take it upon itself to enforce lèse-majesté — or did the White House demand it?  USA Today uncovered internal IRS documents from 2011 that show targeting of groups for “anti-Obama rhetoric” and “emotional” statements by non-profits:

Newly uncovered IRS documents show the agency flagged political groups based on the content of their literature, raising concerns specifically about ”anti-Obama rhetoric,” inflammatory language and “emotional” statements made by non-profits seeking tax-exempt status.

The internal 2011 documents, obtained by USA TODAY, list 162 groups by name, with comments by Internal Revenue Service lawyers in Washington raising issues about their political, lobbying and advocacy activities. In 21 cases, those activities were characterized as “propaganda.”

The 2011 date has one interesting parallel.  Two years ago (almost to the day), the White House rolled out its own version of a lèse-majesté intimidation mechanism — “Attack Watch.”  That didn’t last long in the sunlight, after widespread criticism and derision forced the White House to shelve it, although the Obama campaign tried to bring it back in February 2012 as the “Truth Team.”

So, did the IRS just feel inspired by Attack Watch, or did the White House just transfer the effort?  The date on the IRS document is November 16, 2011, well after Attack Watch became more or less moribund in the public eye.

Supposedly, the IRS was concerned about “propaganda” in its attempt to enforce 501(c)(4) status, but the actual tax law doesn’t mention “propaganda” as a barrier to tax-exempt status:

“The political motivations of this are so patently obvious, but then to have a document that spells it out like this is very damaging to the IRS,” said Jay Sekulow, chief counsel for the ACLJ. “I hope the FBI has seen these documents.”

The IRS categorized the groups as engaging in several advocacy-related activities that could have barred them from tax-exempt status, such as lobbying and “propaganda.”

But the word “propaganda” doesn’t appear in section 501(c)(4), which governs the social welfare status that most Tea Party groups were applying for, said John Colombo, a law professor at the University of Illinois. Instead, it appears in section 501(c)(3), which governs public charities.

“There would be no reason I would think to flag them if it’s for a 501(c)(4) status,” Colombo said. “That’s very odd to me.”

The IRS targeted 162 groups in this effort, of which only 11 were liberal groups, according to USA Today.  Jeff Dunetz predicts that Democrats in Congress will claim that this demonstrates even-handedness by the IRS, but don’t be fooled:

Liberals will be happy to learn that out of the 162 groups mentioned on the 2011 documents at least 11 of them are progressive organizations, giving them the ability to say, “See they weren’t targeting conservative groups.” …

What the report doesn’t show is which of these groups eventually were approved and the difference in waiting times between the conservative and progressive organizations. Either way the ratio of conservative/progressive organizations targeted indicate that there was something rotten going on in the IRS offices in DC.

When the IRS starts targeting political dissent for scrutiny, they have stopped being a revenue collector and have become instead a political enforcer.  That’s dangerous for all Americans, and Congress needs to demand and enforce immediate reform in the IRS.  They also need to find out who ordered the targeting, regardless of how high up it goes.

Gulf of Mexico: DOF Subsea Nets Multiple Subsea Contracts in USA

DOF Subsea Group has been awarded multiple subsea projects for DPII Multipurpose Construction Vessel, the Harvey Deep-Sea, in the Gulf of Mexico.

The recently delivered Harvey Deep-sea successfully completed commissioning mid-September, and is currently mobilizing for the first project in the U.S. Gulf of Mexico.

The awarded projects will secure utilization of the vessel for approximately 60 days in the period from today and until end November.

To remind, DOF Subsea USA  entered into a long-term charter agreement with Harvey Gulf International Marine for the Harvey Deep-Sea. The four year charter agreement began in June 2013.

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IRS list reveals concerns over Tea Party ‘propaganda’

September 17, 2013
Gregory Korte, USA TODAY 8:56 p.m. EDT

WASHINGTON — Newly uncovered IRS documents show the agency flagged political groups based on the content of their literature, raising concerns specifically about “anti-Obama rhetoric,” inflammatory language and “emotional” statements made by non-profits seeking tax-exempt status.

The internal 2011 documents, obtained by USA TODAY, list 162 groups by name, with comments by Internal Revenue Service lawyers in Washington raising issues about their political, lobbying and advocacy activities. In 21 cases, those activities were characterized as “propaganda.”

The list provides the most specific public accounting to date of which groups were targeted for extra scrutiny and why. The IRS has not publicly identified the groups, repeatedly citing a provision of the tax code prohibiting it from releasing tax return information.

DOCUMENT: The IRS list of ‘political advocacy cases’

More than 80% of the organizations on the 2011 “political advocacy case” list were conservative, but the effort to police political activity also ensnared at least 11 liberal groups as of November 2011, including Progressives United, Progress Texas and Delawareans for Social and Economic Justice.

The IRS controversy first exploded in May, when Exempt Organizations Director Lois Lerner admitted that the IRS had targeted Tea Party groups for additional scrutiny beginning in early 2010. The IRS placed a hold on those applications for more than 20 months, an inspector general’s investigation found.

STORY: IRS approved liberal groups while Tea Party in limbo

On Nov. 16, 2011, IRS lawyers in Washington sent a list of cases to front-line agents in Cincinnati, along with comments and guidance on how to handle political organizations.

Tax law experts say those comments appear to show IRS employees trying to apply the murky rules governing political activities by social welfare groups.

But the American Center for Law and Justice, a nonprofit legal institute that represents 23 of the groups appearing on the IRS list, said it appears to be “the most powerful evidence yet of a coordinated effort” by the IRS to target Tea Party groups.

“The political motivations of this are so patently obvious, but then to have a document that spells it out like this is very damaging to the IRS,” said Jay Sekulow, chief counsel for the ACLJ. “I hope the FBI has seen these documents.”

The IRS categorized the groups as engaging in several advocacy-related activities that could have barred them from tax-exempt status, such as lobbying and “propaganda.”

But the word “propaganda” doesn’t appear in section 501(c)(4), which governs the social welfare status that most Tea Party groups were applying for, said John Colombo, a law professor at the University of Illinois. Instead, it appears in section 501(c)(3), which governs public charities.

“There would be no reason I would think to flag them if it’s for a 501(c)(4) status,” Colombo said. “That’s very odd to me.”

STORY: 1959 IRS rule is at the center of Tea Party scandal

In three cases, IRS lawyers noted that groups appeared to be connected to Republican politicians: Stand Up for Our Nation Inc., linked to former Alaska governor Sarah Palin; Reform Jersey Now Inc., linked to Gov. Chris Christie; and American Solutions for Winning the Future, founded by former House speaker Newt Gingrich. Gingrich’s group was approved last year.

Five groups were flagged as having “anti-Obama” materials in their applications or on their websites.

For instance, the IRS said the website of the Patriots of Charleston contains “negative Obama commentary.” Though the IRS didn’t cite examples, a November 2011 article on the group’s site says: “Obama’s and the Democrats’ track record of disaster is based upon a combination of their ignorance and their fundamental desire to convert America into a ruling class of wealthy all-powerful elitists and a single class of serfs.”

“The web site, as we explained to them on multiple occasions, is really a blog” that members can submit commentary to, said Joanne Jones, the group’s vice chairwoman. “I’m not going to tell you we weren’t political. We were to an extent, but we were within the limits of the law. For example, there’s one clear-cut issue: We did not endorse candidates.”

“To focus in on somebody saying something anti-Obama,” she said, “it’s almost like the speech police there. It’s disturbing. It’s the kind of overreach that leads into Obamacare.”

The group received its tax exemption in September 2012.

RHETORIC OF SOME GROUPS QUESTIONED

It wasn’t just anti-Obama rhetoric the IRS was looking out for. Progress Texas was identified by the IRS as engaging in lobbying, propaganda and political activities. IRS lawyers in Washington noted “anti-Rick Perry” rhetoric, referring to the Republican Texas governor, then a presidential candidate.

Progress Texas received a tax exemption as a social welfare group in June, 2012.

Campaign-finance watchdogs say the IRS scrutiny came out of a justified effort to police “dark money” in politics. After the U.S. Supreme Court ruled in 2010 that corporations and unions — and even non-profit groups — could engage in independent political advertising, social welfare groups became a vehicle for funneling undisclosed cash into the election system.

That’s the position of Progressives United, a group founded by former senator Russ Feingold, D-Wis., that itself appeared on the 2011 IRS target list.

“The fact that our group received some scrutiny does not change at all our opinion that scrutiny like this from the IRS, it’s their job. The law applies to us as it would any conservative group,” said Progressives United’s Josh Orton. “I feel like there’s this group of campaign finance nihilists who want to expand this into an argument that there should be no scrutiny at all. They want a wild west of election law, because they want to continue using secret corporate money to influence elections.”

Crossroads GPS, a group affiliated with GOP strategist Karl Rove, spent $70 million on the 2012 election. Its 2010 application for a tax exemption, obtained by the non-profit news organization Pro Publica last year, said it would spend 50% of its resources on “public education.” In the 2011 list, the IRS noted “significant anti-Obama rhetoric.” Crossroads has not received a tax exemption.

‘WE ARE TOTALLY ABOVE BOARD’

The Tea Party of North Idaho filed its tax-exempt application in February, 2010 — the same month IRS screeners in Cincinnati first brought Tea Party applications to the attention of officials in Washington, according to IRS employee testimony before a congressional committee.

A lawyer in the IRS Exempt Organizations Technical Unit in Washington wrote the Idaho group had “No significant amount of clear campaign intervention; however little issue advocacy or educational; significant inflammatory language, highly emotional language, little to no educational information on issues.”

The IRS lawyers recommended that screeners in Cincinnati look for other materials — including “press releases, commentary, articles, and research reports,” according to the IRS list.

That’s when Leslie Damiano, who co-founded the North Idaho group, started getting what she considered to be intrusive questions from the IRS. She said the tax agency wanted to know who her donors were, and what companies they own. They wanted to know the educational background of the group’s board members. And they wanted to know whether candidates were invited to the group’s meetings, and whether it made endorsements.

“We’re a conservative organization. We invited some independents,” she said. “We never had any rallies that were off the charts by any stretch of the imagination.”

Frustrated with the process, the Tea Party of North Idaho withdrew its application in 2012.

“We had an accountant, we had a bookkeeper. We were totally above board with everything we did,” Damiano said.

REDUCING THE NATIONAL DEBT

Some groups caught in the IRS’ net had no connection to national politics on either side. The Citizens for the Preservation of Rural Murrysville says it’s “dedicated to the preservation of the open and natural, rural character of Murrysville, Pa.,” although the IRS said it endorsed some local candidates. The Sarasota Bay Tiger Club is one of several similar Florida clubs that provide “a non-partisan forum on current political issues.” The club says it has “never endorsed political candidates nor advocated a particular ideology,” but the IRS said in its spreadsheet that it was “unclear” if that was the case.

The list also includes the Association to Reduce the National Debt, which was seeking to be recognized as a charity so it could solicit tax-deductible contributions — and give those contributions to the U.S. Treasury to put toward the national debt.

Founder Seth Eisenberg said the group was not political — and he told the IRS that.

IRS tax specialists noted “no political campaign activities.” But two years after applying, the association still hasn’t gotten his ruling letter. And without that letter, contributions are not tax-deductible and no one will give, he said.

All for a group that said it wanted to give the government money.

“I thought this would be a fast-tracked application. A no-brainer. But it got caught up in this whole political controversy,” Eisenberg said. “It’s the greatest irony that ever was.”

Follow @gregorykorte on Twitter.

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Billionaire Swindlers Line Up for ObamaCare Cash

July 17, 2013
By Michael Volpe 

An information technology (IT) company in line to bid on billions in new contracts as a result of ObamaCare is the subject of a growing list of scandals and investigations in which its alleged that, among a number of abuses, the company has produced low ball bids in order to win Medicaid related contracts, only to create overages that balloon the expense of the project as it is implemented.

The name of the company is Client Network Services, Inc (CNSI) and it’s headquartered in Maryland. The company will be able to bid on billions in new ObamaCare-related IT contracts because, in order for states to receive new grants for expanded Medicaid rolls, ObamaCare requires states to have IT systems that are able to share data at so-called finger-tip access. Because most states have antiquated systems, such overhauls will often require the assistance of companies like CNSI.

In March, Louisiana Governor Bobby Jindal canceled one such contract between CNSI and his state after it came to light that a federal grand jury was investigating the relationship between one of his top aides and CNSI.

Front Page Magazine interviewed Tom Aswell, a blogger and author from Louisiana with more than three decades of news experience. Aswell has been writing about the case from the beginning.

Aswell said he first became aware something was amiss in June 2011, when Bruce Greenstein went before the Louisiana Senate Governmental Affairs Committee to be confirmed as the secretary of Louisiana’s Department of Health and Hospitals (DHH), the equivalent of the US Health and Human Services (HHS) secretary.

During the proceedings, things became contentious and confusing when Greenstein refused to divulge the recipient of a contract to upgrade the State of Louisiana’s antiquated computer system, which electronically processed Medicaid health care claims.

Greenstein went back and forth with lawmakers for quite a while before he finally admitted it was CNSI, his own former employer. He assured the state legislators at that hearing that he created a firewall between himself and his former employer during the contractual process.

That turned out not to be true, and, instead, in March 2013, news was leaked that a federal grand jury was investigating the potentially illegal relationship between Greenstein and CNSI during the process in which this contract was awarded.

Once that came to light, not only did Jindal cancel the contract, but Greenstein resigned shortly after. Aswell said that all sorts of issues were raised with CNSI’s bid ($194 million), and a number of people in the media raised concerns that CNSI would not be able to achieve the contract for the pre-arranged price.

In 2012, Southeast Michigan Healthcare Information Exchange (SEMHIE), a multi-stakeholder initiative trying to integrate a health information exchange throughout southeast Michigan, sued CNSI for breach of contract after CNSI allegedly failed to provide SEMHIE with prior agreed upon software. An email was left unreturned by SEMHIE for this story. Jennifer Bahrami, press secretary for CNSI, also didn’t respond to an email for comment for this story.

In 2011, CNSI was accused of lowballing a contract in South Dakota, only to have expenses increase exponentially as the project wore on. A local story on the affair explained:

The South Dakota Department of Social Services has paid $49.7 million so far for a new Medicaid processing system that at this point remains inoperable.

The original contract was for $62.7 million, but the new system is now expected to cost far in excess of $80 million to complete and will take two to three more years to get running, according to court documents filed as part of a lawsuit between the contractor and the department.

The most in-depth investigation of CNSI occurred in Maine in 2006, and it was conducted by the magazine CIO, a journal for IT professionals. In that piece, CIO concluded that not only did CNSI’s system end up costing 20% more than the company’s originally bid, but its implementation was a logistical nightmare.

The department’s Bureau of Medical Services, which runs the Medicaid program, was being deluged with hundreds of calls from doctors, dentists, hospitals, health clinics and nursing homes, angry because their claims were not being paid. The new system had placed most of the rejected claims in a ‘suspended’ file for forms that contained errors.

Tens of thousands of claims representing millions of dollars were being left in limbo.

About 15 IT staffers and about 4 dozen employees from CNSI, the contractor hired to develop the system—were working 12-hour days, writing software fixes and performing adjustments so fast that Hitchings knew that key project management guidelines were beginning to fall by the wayside. And nothing seemed to help.

Because CNSI is a private company, their financials aren’t published, and thus, the exact amount of business it does with our government isn’t known. Furthermore, because most IT-related Medicaid contracts are done on the state level, tracking the amount of IT business that ObamaCare will create is also very difficult to do. It is clear that one company that should be happy with the implementation of ObamaCare is CNSI because it is without a doubt a boon to a company like it. The company’s behavior before and during the implementation of ObamaCare should therefore be watched very carefully and Front Page Magazine intends to do so.

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Obama waives ban on arming terrorists to allow aid to Syrian opposition

SEPTEMBER 16, 2013
By JOEL GEHRKE

President Obama waived a provision of federal law designed to prevent the supply of arms to terrorist groups to clear the way for the U.S. to provide military assistance to “vetted” opposition groups fighting Syrian dictator Bashar Assad.

Some elements of the Syrian opposition are associated with radical Islamic terrorist groups, including al Qaeda, which was responsible for the Sept. 11 attacks in New York, Washington, D.C., and Shanksville, Pa., in 2001. Assad’s regime is backed by Iran and Hezbollah.

The president, citing his authority under the Arms Export Control Act, announced today that he would “waive the prohibitions in sections 40 and 40A of the AECA related to such a transaction.”

Those two sections prohibit sending weaponry to countries described in section 40(d): “The prohibitions contained in this section apply with respect to a country if the Secretary of State determines that the government of that country has repeatedly provided support for acts of international terrorism,” Congress stated in the Arms Control Export Act.

“For purposes of this subsection, such acts shall include all activities that the Secretary determines willfully aid or abet the international proliferation of nuclear explosive devices to individuals or groups or willfully aid or abet an individual or groups in acquiring unsafeguarded special nuclear material,” the law continues.

The law allows the president to waive those prohibitions if he “determines that the transaction is essential to the national security interests of the United States.”

Under section 40(g) of the AECA, the Obama team must also provide Congress — at least 15 days before turning over the weapons — “the name of any country involved in the proposed transaction, the identity of any recipient of the items to be provided pursuant to the proposed transaction, and the anticipated use of those items,” along with a list of the weaponry to be provided, when they will be delivered, and why the transfer is key to American security interests.

Sen. Bob Corker, R-Tenn., and Sen. Carl Levin, D-Mich., endorsed providing military assistance to the Syrian opposition during an appearance on CBS’ “Face the Nation” Sunday.

“Our intelligence agencies, I think, have a very good handle on who to support and who not to support,” Corker said. “And there’s going to be mistakes. We understand some people are going to get arms that should not be getting arms. But we still should be doing everything we can to support the free Syrian opposition.”

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Q7000: Helix Orders Semi-Submersible Rig from Sembcorp Marine

Sembcorp Marine’s subsidiary Jurong Shipyard has secured a US$346 million contract to build a second semi-submersible well intervention rig for Helix Energy Solutions Group, Inc. (Helix), a market leader in subsea well intervention services.

Scheduled for delivery in mid-2016, the semi-submersible light well intervention rig will be built based on a design jointly developed by Sembcorp Marine Technology Pte Ltd (SMTP), a fully-owned Research & Development subsidiary of Sembcorp Marine, and Helix. Featuring the latest technology, the rig – named Q7000 by Helix – is an efficient purpose-designed platform with capabilities to perform a wide variety of tasks, including conventional and extended top hole drilling, subsea construction, decommissioning well intervention, coiled tubing operations and twin ROV deployment.

The Dynamic Positioning (DP) class 3 unit has the ability to operate in deepwater operations worldwide, including the North Sea and West of Africa.

William Gu, General Manager of Offshore Division said: “We are honoured that Helix has chosen to build their second semi-submersible well intervention rig with us. This repeat order is significant as it testifies as to their trust and confidence in our design and building capabilities in rigs with well intervention and subsea capabilities that are customised to meet this new growth segment of the market. We are committed to build on our partnership with Helix and to meet their stringent standards of quality, safety and reliability.”

Owen Kratz, Helix’s President and Chief Executive Officer, said: “We are pleased to work with our trusted partner Jurong Shipyard on this second unit of the semisubmersible well intervention rig, to be named Q7000.”

The above is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2013.

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Gulf of Mexico: Stone Energy Completes Taggart Prospect Drilling Ops

Stone Energy Corporation provided an update on the deep water Taggart prospect, including the exploratory well drilled at Mississippi Canyon 816. Drilling operations have been completed and the rig is being released.

The well has been logged, and pressure readings, cores and fluid samples have been taken in the Pliocene and Upper Miocene section sands. The data indicates a discovery with approximately 90 feet of net oil and gas condensate pay in two sands. The partners plan to further analyze the data from this well and develop a plan which is expected to include a sub-sea tie back to an existing facility. Stone holds approximately 23% working interest in the project, and LLOG Exploration Offshore, L.L.C. is the operator.

A discovery was also made on the Taildancer prospect at Ship Shoal 113, with the well encountering 130 feet of net oil and gas pay. Production from this discovery is projected to be on line in the fourth quarter of 2013. Stone is the operator with a 100% working interest.

The rig for the deep water San Marcos prospect at Mississippi Canyon 983 is on location and has begun drilling. Stone holds a 25% working interest in the prospect which is operated by Apache Deepwater LLC.

Stone also provided updated production guidance for the third quarter of 2013, increasing from 42-45 Mboe per day (252-270 MMcfe per day) to 46-49 Mboe per day (276-294 MMcfe per day). The full year guidance has also been increased from 41-44 Mboe per day (246-264 MMcfe per day) to 43.5-45.0 Mboe per day (261-270 MMcfe per day). The increase was due to higher projected Appalachian volumes, incremental volumes from the La Cantera field and a more active workover/recompletion GOM shelf program. The guidance still incorporates some projected hurricane shut-in time as well as reduced fourth quarter volumes in Appalachia due to cold weather pipeline restrictions.

Additionally, Stone’s Board of Directors has authorized an increase to the 2013 capital expenditure budget from $650 million to $710 million, which excludes major acquisitions and capitalized SG&A and interest. Most of the capital expenditure budget increase is expected to be in the GOM deep water, with a minor increase in the Appalachia area. The final capital expenditure amount and the allocation of capital across the various areas is subject to change based on several factors including permitting times, rig availability, non-operator decisions, farm-in opportunities and commodity pricing.

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NSA spying on Petrobras, if proven, is industrial espionage -Rousseff

By Anthony Boadle

(Reuters) – Reports that the United States spied on Brazilian oil company Petrobras, if proven, would be tantamount to industrial espionage and have no security justification, Brazil’s President Dilma Rousseff said on Monday.

Brazil’s Globo television network reported on Sunday that the U.S. National Security Agency hacked into the computer networks of Petrobras and other companies, including Google Inc. , citing documents leaked by former NSA contractor Edward Snowden.

The report came as Brazil is preparing to auction rights to tap some of the largest oil finds in the world in recent decades, deposits trapped under a salt layer off its Atlantic coast. State-run Petrobras, Brazil’s largest company and a source of national pride, made the discoveries in recent years and will be a mandatory partner in developing all of the new deep-sea fields.

The Globo report added tension to relations between Washington and Brasilia already strained by previous disclosures of NSA spying on internet communications in Brazil, including email messages and phone calls of Rousseff herself.

An angry Rousseff has repeatedly demanded an explanation. At stake is a state visit by Rousseff to the White House on Oct. 23 to meet President Barack Obama and discuss a possible $4 billion jet fighter deal, cooperation on oil and biofuels technology, as well as other commercial agreements.

“If the facts reported by the press are confirmed, it will be evident that the motive for the spying attempts is not security or the war on terrorism but strategic economic interests,” Rousseff said in a statement.

The U.S. government has said the secret internet surveillance programs disclosed by Snowden in June are aimed at monitoring suspected terrorist activity and do look at the content of private messages or phone calls.

PETROBAS NOT A SECURITY THREAT

“Clearly, Petrobras is not a threat to the security of any country,” Rousseff said, adding that the company is one of the world’s largest oil assets and belongs to the Brazilian people.

Brazil will take steps to protect itself, its government and its companies, Rousseff said, without elaborating. She said such espionage and interception of data were illegal and had no place in the relations between two democratic nations.

On Friday, Obama met with Rousseff during a summit of leaders of the world’s largest economies in St. Petersburg, Russia, and pledged to look into the reports that the NSA had snooped on her personal communications and those of Mexican President Enrique Pena Nieto when he was still a candidate.

She said Obama had promised her a reply by Wednesday.

Brazilian Foreign Minister Luiz Alberto Figueiredo is scheduled to meet in Washington on the same day with Obama’s national security adviser Susan Rice, Brazilian officials said.

Globo did not say when the alleged spying took place, what data might have been gathered or what exactly the NSA may have been seeking. The television report showed slides from an NSA presentation, dated May 2012, that it said was used to show new agents how to spy on private computer networks.

In addition to Google and Petrobras the presentation suggested the NSA had tapped into systems operated by France’s foreign ministry and the Society for Worldwide Interbank Financial Telecommunication, an international bank cooperative known as Swift through which many cross-border financial transactions take place.

Brazilian officials said the spying report would not affect the upcoming auction of rights to extract oil from the giant Libra oil field, which will go ahead as scheduled on Oct. 21.

Some Brazilian politicians have suggested that U.S. companies should be excluded from the bidding, but experts said that is legally impossible according to the terms of the auction.

Libra has estimated reserves of between 8 and 12 billion barrels of oil, according to Brazilian oil regulator ANP.

Brazil is counting on the new oil production to consolidate its emergence as a world economic power and take the country’s development to a new level. Rousseff signed a law on Monday that designates the royalties from the new oil production contracts for health and education programs.

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