US Protests: LAPD funding slashed by $150m, reducing number of officers


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City leaders on Wednesday voted to slash the Los Angeles Police Department budget by $150 million, reducing the number of officers to a level not seen for more than a decade.

The move is an answer to demands to shift money away from law enforcement agencies as America deals with uproar over police brutality and racial injustice.

About two thirds of the funding was set aside for police overtime and will be used to provide services and programmes for communities of colour, including a youth summer jobs scheme.

The City Council’s 12-2 vote will drop the number of officers from 9,988 as of last month to 9,757 by next summer, abandoning a goal of 10,000 officers promoted by political leaders and only reached in 2013.

It is a significant change in the nation’s second largest city, where the 1992 acquittal of white officers in the beating of black driver Rodney King set off violent unrest.

That anger was reignited during some protests over the death of unarmed African-American George Floyd at the hands of Minneapolis police.

Other cities around the country have cut police budgets or are moving to do so, including an effort in Minneapolis to disband the city’s force.

New York City councillors approved an austere budget on Wednesday that will shift $1 billion (Dh3.67bn) from policing to education and social services in the coming year.

In California, liberal Berkeley passed a budget on Wednesday that cuts $9.2m from police, while Oakland leaders last week slashed $14.6m from law enforcement and they are considering steeper reductions.

The Los Angeles vote reduces the LAPD’s budget of nearly $2bn.

Democratic Mayor Eric Garcetti had proposed increasing it in April to help keep the level of 10,000 officers before facing intense opposition after Floyd’s death sparked a nationwide campaign to “defund” police.

There was no immediate comment from the LAPD. But Police Chief Michel Moore on Wednesday night tweeted that “we remain as resolved as ever to the conversation around reform, and continuing to walk forward together".

Mr Moore last month said the cut would require “a top-to-bottom assessment, including how we go about our most basic operations”.

He said the department had already begun to identify cost savings and service reductions.

The LA Unified School District voted to immediately cut its school police budget by a third.

The $70m budget for a force of more than 470 officers will be reduced by about $25m and the money dedicated to “support African-American student achievement to the extent of the law", its resolution said.

South Dakota

A South Dakota police department has removed a decal from its squad cars that featured a Confederate battle flag next to an American flag.

Dave Mogard, the police chief in Gettysburg, a small city named after the famous Civil War battle, declined to confirm that the decal had been removed, saying on Thursday that the City Council would discuss the issue at a meeting on Monday.

But several locals, including Selwyn Jones, an uncle of George Floyd, said the decal had been removed from the department’s squad cars and station doors.

Mr Jones called for the change after his nephew, who was handcuffed, died on May 25 while being arrested by police in Minneapolis.

A white police officer used his knee to pin Mr Floyd’s neck for nearly nine minutes as he begged for air and eventually stopped moving.

Floyd’s death led to charges against four officers who took part in the arrest and to worldwide protests over police brutality and racial injustice.

Georgia

Authorities on Thursday arrested two more people on suspicion of arson in the burning of an Atlanta Wendy’s restaurant where a police officer fatally shot Rayshard Brooks, 27.

The arrests of John Wade, 33, and Chisom Kingston, 23, were confirmed by Atlanta fire spokesman Sgt Cortez Stafford, the Atlanta Journal-Constitution said.

Protesters torched the fast food restaurant June 13, the night after police killed Brooks, an African American man.

Video shows that Brooks was shot in the back in the Wendy’s parking lot after he resisted arrest and fired a Taser while he was running away.

The newspaper said Wade was one of several people who organised demonstrations in Atlanta after the death of Floyd.

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Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”