U.S. judge approves settlement in BP class action suit






(Reuters) – A U.S. judge on Friday gave final approval to BP Plc‘s settlement with individuals and businesses who lost money and property in the 2010 Gulf of Mexico oil spill.


The order only addressed the settlement of economic and property damage claims, not a separate medical benefits settlement for cleanup workers and others who say the spill made them sick.






BP has estimated that it will pay $ 7.8 billion to settle more than 100,000 claims in the class action litigation.


U.S. District Judge Carl Barbier initially approved the deal in May, but held a “fairness hearing” in November to weigh objections from about 13,000 claimants challenging the settlement to resolve some of BP’s liability for the worst offshore oil spill in U.S. history.


London-based BP’s Macondo well spewed 4.9 million barrels of oil into the Gulf of Mexico over a period of 87 days. The torrent fouled shorelines from Texas to Alabama and eclipsed the 1989 Exxon Valdez spill in Alaska in severity.


Lawyers for some affected parties had objected to the deal, reached in March between BP and lawyers representing plaintiffs ranging from restaurateurs, hoteliers, and oyster men who lost money from the spill. They argued that some claimants would be underpaid or unfairly excluded.


But in a 125-page order approving the settlement, Barbier called the deal “fair, reasonable and adequate,” citing the low number of class members who objected or opted out.


BP welcomed the approval order in a statement, adding that the settlement resolves the majority of economic and property damage claims stemming from the accident.


“Today’s decision by the Court is another important step forward for BP in meeting its commitment to economic and environmental restoration efforts in the Gulf and in eliminating legal risk facing the company,” BP said.


Separate from the class action claims, BP has been locked in a year-long legal battle with the U.S. government and Gulf Coast states to settle billions of dollars in civil and criminal liability from the explosion.


In a settlement with the U.S. government announced last month, BP agreed to pay $ 4.5 billion in penalties and plead guilty to felony misconduct. The government also indicted the two highest-ranking BP supervisors aboard the Deepwater Horizon rig during the disaster, charging them with 23 criminal counts including manslaughter.


The class action case is In Re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico on April 20, 2010, U.S. District Court for the Eastern District of Louisiana, No. 10-2179.


(Reporting by Terry Baynes in New York; Editing by Gary Hill)


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Italy PM Monti resigns, elections likely in February






ROME (Reuters) – Italian Prime Minister Mario Monti tendered his resignation to the president on Friday after 13 months in office, opening the way to a highly uncertain national election in February.


The former European commissioner, appointed to lead an unelected government to save Italy from financial crisis a year ago, has kept his own political plans a closely guarded secret but he has faced growing pressure to seek a second term.






President Giorgio Napolitano is expected to dissolve parliament in the next few days and has already indicated that the most likely date for the election is February 24.


In an unexpected move, Napolitano said he would hold consultations with political leaders from all the main parties on Saturday to discuss the next steps. In the meantime Monti will continue in a caretaker capacity.


European leaders including German Chancellor Angela Merkel and European Commission President Jose Manuel Barroso have called for Monti’s economic reform agenda to continue but Italy’s two main parties have said he should stay out of the race.


Monti, who handed in his resignation during a brief meeting at the presidential palace shortly after parliament approved his government’s 2013 budget, will hold a news conference on Sunday at which he is expected clarify his intentions.


Ordinary Italians are weary of repeated tax hikes and spending cuts and opinion polls offer little evidence that they are ready to give Monti a second term. A survey this week showed 61 percent saying he should not stand.


Whether he runs or not, his legacy will loom over an election which will be fought out over the painful measures he has introduced to try to rein in Italy’s huge public debt and revive its stagnant economy.


His resignation came a couple of months before the end of his term, after his technocrat government lost the support of Silvio Berlusconi‘s centre-right People of Freedom (PDL) party in parliament earlier this month.


Speculation is swirling over Monti’s next moves. These could include outlining policy recommendations, endorsing a centrist alliance committed to his reform agenda or even standing as a candidate in the election himself.


The centre-left Democratic Party (PD) has held a strong lead in the polls for months but a centrist alliance led by Monti could gain enough support in the Senate to force the PD to seek a coalition deal which could help shape the economic agenda.


BERLUSCONI IN WINGS


Senior figures from the alliance, including both the UDC party, which is close to the Roman Catholic Church, and a new group founded by Ferrari sports car chairman Luca di Montezemolo, have been hoping to gain Monti’s backing.


He has not said clearly whether he intends to run, but he has dropped heavy hints he will continue to push a reform agenda that has the backing of both Italy’s business community and its European partners.


The PD has promised to stick to the deficit reduction targets Monti has agreed with the European Union and says it will maintain the broad course he has set while putting more emphasis on reviving growth.


Berlusconi’s return to the political arena has added to the already considerable uncertainty about the centre-right’s intentions and increased the likelihood of a messy and potentially bitter election campaign.


The billionaire media tycoon has fluctuated between attacking the government’s “Germano-centric” austerity policies and promising to stand aside if Monti agrees to lead the centre right, but now appears to have settled on an anti-Monti line.


He has pledged to cut taxes and scrap a hated housing tax which Monti imposed. He has also sounded a stridently anti-German line which has at times echoed the tone of the populist 5-Star Movement headed by maverick comic Beppe Grillo.


The PD and the PDL, both of which supported Monti’s technocrat government in parliament, have made it clear they would not be happy if he ran against them and there have been foretastes of the kind of attacks he can expect.


Former centre-left prime minister Massimo D’Alema said in an interview last week that it would be “morally questionable” for Monti to run against the PD, which backed all of his reforms and which has pledged to maintain his pledges to European partners.


Berlusconi who has mounted an intensive media campaign in the past few days, echoed that criticism this week, saying Monti risked losing the credibility he has won over the past year and becoming a “little political figure”.


(Additional reporting by Gavin Jones, Massimiliano Di Giorgio and Paolo Biondi; Writing by Gavin Jones and James Mackenzie; Editing by Michael Roddy)


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Instagram diverts attention from botched policy change with another new filter









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‘Homeland’ star Claire Danes gives birth to first child






LOS ANGELES (Reuters) – Emmy-winning actress Claire Danes has given birth to her first child, a boy, the publicist for the “Homeland” star said on Wednesday.


Cyrus Michael Christopher Dancy was born on Monday to Danes, 33, and her husband, British actor Hugh Dancy.






Danes’ performance as CIA operative Carrie Matheson on Showtime’s “Homeland” series scored her an Emmy win in September, while the psychological thriller won the TV industry’s highest honor of best drama series.


Danes is nominated for her second Golden Globe award in the role at the Hollywood awards show in January. She also has won multiple awards for her past work on 2010 TV film “Temple Grandin,” and as a 15-year-old on the 1990s coming-of-age television drama “My So-Called Life.”


(Reporting by Eric Kelsey, editing by Jill Serjeant and Lisa Shumaker)


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Why Bill Ackman Went on a Three-Hour Rant Against Herbalife






Is Herbalife (HLF) “the best-managed pyramid scheme in the history of the world,” as fund manager William “Bill” Ackman suggests? Is the maker of weight-loss and nutrition products being unfairly maligned by a man who will make money if investors flee the stock? Did you care about Herbalife before Ackman issued a marathon critique of its business on Dec. 20? You may well not own the stock, as it’s not exactly a blue chip play. But now that Herbalife Chief Executive Officer Michael Johnson and Ackman are blasting each other on the media circuit, the question is what to make of this drama.


This isn’t your typical short-seller’s fight. Start with the fact that Ackman presented his case against Herbalife at a special complimentary event hosted by the Sohn Conference Foundation. The Sohn Conference, now in its 17th year, famously brings together billionaire investors each summer to share their top investment picks and raise money for pediatric cancer research. This is the first time it has held an event featuring one person, according to organizers. The reason became clear at the end of Ackman’s three-hour show: Any money he makes on this bet will go to charity, with $ 25 million slated for Sohn regardless of how it turns out.






Why not make a ton of money and use just some of it for a good cause, as Ackman normally does? Because profiting from Herbalife’s alleged exploitation of its distributors feels like “blood money,” Ackman said. His goal: to let the Federal Trade Commission take this research and shut the company down. Herbalife’s Johnson, meanwhile, is calling on the U.S. Securities and Exchange Commission to pursue Ackman for “blatant market manipulation.”


The most intriguing thing about Ackman’s high-profile crusade against Herbalife is the fact that Ackman launched it. The founder of Pershing Square Capital Management is best known these days as an activist investor who buys up huge stakes in such companies as Canadian Pacific (CP), JC Penney (JCP), and Target (TGT) to force changes he hopes will drive up the stock price. While he made more than $ 1 billion by betting against bond insurer MBIA (MBI), Ackman prefers to put his money on businesses that can improve, vs. those poised to crash.


All the more reason to wonder why he has spent more than a year researching the case against a company that’s arguably an easy target. Multilevel marketing companies, from Avon (AVP) to Amway, have long dealt with criticism that they’re built on the backs of gullible distributors. People make an upfront investment to sell products on behalf of the company—usually to family and friends—in the hope that they’ll make a decent commission from the sales. Moreover, they’re rewarded for recruiting others to do the same. For most sellers, that system rarely leads to a lucrative income. For investors, the question is what portion of sales are fueled by signing up new recruits vs. selling to consumers who want the products.


In Herbalife’s case, Ackman contends, it’s not much. The model is so stretched worldwide—Ackman used the term “pancake scheme”—that Herbalife has resorted to selling weight loss products in Ghana. (With KFC (YUM) making major inroads there, that might not be a bad thing.) Ackman’s not the first to make that case. David Einhorn of Greenlight Capital, well-known for his success in shorting stocks, was asking tough questions of Herbalife’s management months ago. The SEC even looked into the matter.


Although Johnson was brimming with vitriol on Dec. 19, when the Herbalife CEO told CNBC that the world would be better off without Ackman, the company e-mailed a statement after the Sohn Conference presentation to say the inaccuracies were too “numerous” to address right now and to further complain about having been denied a chance to participate.


What we do know is that Bill Ackman hates this flavor of multilevel selling so much that he’s planning to put up a website to warn people against seeking a career through Herbalife. He’s used to being a shareholder’s friend in fighting management, not some villain who profits from others’ misfortune. Try telling that to Fidelity, Herbalife’s largest investor with more than 17 million shares in its funds. While a spokeswoman says the firm doesn’t comment on individual holdings, it has also been selling down its stake in recent months. Herbalife will need to find some fresh recruits.


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Wounded presage health crisis for postwar Syria






ATMEH, Syria (AP) — A baby boy joined the ranks of Syria’s tens of thousands of war wounded when a missile fired by Bashar Assad‘s air force slammed into his family home and shrapnel pierced his skull.


Four-month-old Fahed Darwish suffered brain damage and, like thousands of others seriously hurt in the civil war, he will likely need care well after the fighting is over. That’s something doctors say a post-conflict Syria won’t be able to provide.






Making things worse, there has been a sharp spike in serious injuries since the summer, when the regime began bombing rebel-held areas from the air, and doctors say a majority of the wounded they now treat are civilians.


This week, Fahed was recovering from brain surgery in an intensive care unit, his head bandaged and his body under a heavy blanket, watched over by Mariam, his distraught 22-year-old mother.


She said that after her first-born is discharged from the hospital in Atmeh, a village in an area of relative safety near the Turkish border, they will have to return to their village in a war zone in central Syria.


“We have nowhere else to go,” she said.


Even for those who have escaped direct injury, the civil war is posing a mounting health threat. Half the country’s 88 public hospitals and nearly 200 clinics have been damaged or destroyed, the World Health Organization says, leaving many without access to health care. Diabetics can’t find insulin, kidney patients can’t reach dialysis centers. Towns are running out of water-purifying materials. Many of the hundreds of thousands displaced by the fighting are exposed to the cold in tents or unheated public buildings.


“You are talking about a public health crisis on a grand scale,” said Dr. Abdalmajid Katranji, a hand and wrist surgeon from Lansing, Michigan, who regularly volunteers in Syria.


No one knows just how many people have been injured since the uprising against Assad erupted in March 2011, starting out with peaceful protests that turned into an armed insurgency in response to a violent government crackdown.


More than 43,000 have been killed in the past 21 months, said Rami Abdul-Rahman, head of the Britain-based Syrian Observatory for Human Rights, basing his count on names and details provided by activists in Syria. He said the number of wounded is so large he can only give a rough estimate, of more than 150,000.


Casualties began to rise dramatically at the start of the summer. At the time, the regime, its ground troops stretched thin, began bombing from the air to prevent opposition fighters from gaining more territory.


Seemingly random bombings have razed entire villages and neighborhoods, driving terrified civilians from their homes, with an estimated 3 million Syrians out of the country’s population of 23 million now displaced.


About 10 percent of the wounded suffer serious injuries and many of those will need long-term care and rehabilitation, said Dr. Omar Aswad of the Union of Syrian Medical Relief Organizations, an umbrella for 14 aid groups.


This includes artificial limbs and follow-up surgery. “This is of course not available and will be one of the major (health) problems in the months right after the war,” said Mago Tarzian, emergency director for the Paris-based Doctors Without Borders.


For now, aid groups are struggling to provide even emergency treatment in under-equipped clinics.


The two dozen small hospitals and field clinics in rebel-run areas of Idlib province in the north only have a few Intensive Care Unit beds between them, said Aswad. None has a CT scanner, an important diagnostic tool.


“We need generators, we need medical supplies and the most pressing is medicine,” he said.


The challenge has been compounded by new types of injuries.


The regime has begun dropping incendiary bombs that can cause severe burns, according to the New York-based Human Rights Watch, citing amateur video and witness accounts.


Ole Solvang, a researcher for the group, said he saw remnants of such a bomb on a recent Syria trip. Aswad said doctors in Idlib and nearby Aleppo province reported seeing patients with burns from such weapons.


Doctors and hospitals have also been targeted. Aswad, who fled the city of Idlib in March after regime forces entered it, said five friends in a secret association of anti-regime physicians have been arrested. Hospitals, ambulances and doctors have been attacked, Solvang said, calling it “a worrying trend that makes the medical situation even worse.”


One of the bright spots is a 50-bed emergency care clinic set up six weeks ago in a former elementary school in Atmeh.


Largely funded by a wealthy Syrian expatriate, the Orient clinic, with five ICU beds, handles some of the most serious cases in a radius of some 150 kilometers (90 miles), said its director, orthopedic surgeon Abdel Hamid Dabbak.


In the past, seriously wounded patients had to go to Turkey, risking dangerous delays at the border, he said. Now, once patients are stabilized in Atmeh, they are sent to a sister clinic across the border for follow-up care.


In Orient’s ICU, a 24-year-old rebel fighter was breathing oxygen through a mask. He had been brought in a day earlier, bleeding heavily from stomach wounds and close to death, said Dr. Maen Martini, a volunteer physician from Joliet, Illinois. After surgery, he stabilized and was taken off a respirator. A delayed crossing into Turkey would have killed him, Martini said.


The fighter’s neighbor was little Fahed, whose house had been struck by a missile on Saturday in the village of Kafr Zeita in Hama province. “The roof collapsed on us,” his mother said of the attack. “We ran out … I saw him bleeding from his head, but it was just a small cut.”


The local clinic said the injury was more serious than it seemed and the family rushed to Atmeh, more than 100 kilometers (60 miles) to the north.


Since surgery, Fahed has been nursing and has moved his arms and legs, and the doctor is hoping for a near-complete recovery.


“Clinically, he has improved dramatically,” he said.


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North Korean Video Game Has Western Ties






Video games represent a true luxury for most North Koreans living in a country where even the elite have only hours of electricity each day. That has not stopped a Western company in the capital city of Pyonyang from creating what may be the first North Korean game widely available online.


The game, called “Pyongyang Racer,” is a simple Web browser game that allows players to drive a car around North Korea’s capitol city of Pyongyang, according to Beijing Cream. Players must avoid hitting cars and collect gasoline in the form of petrol barrels to keep their run going as long as possible — all while getting warnings from one of Pyongyang’s famously picturesque traffic girls.






“Pyongyang Racer” has an unusual development history as a video game. The North Korean programmers who made the game work for Nosotek, a Western company that describes itself as the “first western IT venture” in North Korea.


Nosotek’s North Korean programmers previously made mobile-phone games based on the Hollywood films “The Big Lebowski” and “Men in Black.” Those games ended up getting published through a subsidiary of Rupert Murdoch‘s News Corp (owner of Fox News), according to Bloomberg News.


Nosotek claims to have “attracted the cream of local talent as the only company in Pyongyang offering Western working conditions and Internet access.” That would likely be true in North Korea, given the nuclear-armed country’s pariah status among Western countries and businesses.


The Nosotek website also praises the advantages of working in North Korea because “IP secrecy and minimum employee churn rate are structurally guaranteed.” Translation: North Korean programmers would likely never leave Nosotek with the company’s intellectual property secrets because they have practically no other employment options.


Nosotek built the game for Koryo Tours, a company based in Beijing, China, to distribute “Pyongyang Racer” through the Koryo Tours website. Koryo Tours is currently the leading company that runs tours of secretive North Korea for Westerners and other foreigners.


“This game was developed in 2012 and is not intended to be a high-end technological wonder hit game of the 21st century, but more a fun race game (arcade style) where you drive around in Pyongyang and learn more about the sites and get a glimpse of Pyongyang,” Koryo Tours said on the game’s website.


This story was provided by TechNewsDaily, a sister site to LiveScience. You can follow TechNewsDaily Senior Writer Jeremy Hsu on Twitter @jeremyhsu. Follow TechNewsDaily on Twitter @TechNewsDaily, or on Facebook.


Copyright 2012 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Leah Remini sued by former managers over “Family Tools” commissions






LOS ANGELES (TheWrap.com) – Leah Remini‘s new TV gig is already giving her a headache, months before it even starts. Former “King of Queens” star Remini is being sued by her former managers, the Collective Management Group, which claims that it’s owed $ 67,000 in commissions relating to her upcoming ABC comedy “Family Tools,” which debuts May 1.


In a complaint filed with Los Angeles Superior Court on Tuesday, the Collective says that it entered into an agreement with the actress in November 2011 that guaranteed the company 10 percent of the earnings that emerged from projects that Remini “discussed, negotiated, contemplated, or procured/booked during Plaintiff’s representation of Remini,” regardless of whether the income was earned after she and the Collective parted ways.






According to the lawsuit, that would include the $ 1 million that it says Remini will earn for the first season of “Family Tools.” (The suit allows that it isn’t owed commission on a $ 330,000 talent holding fee that Remini received from ABC prior to officially being booked on the show.)


Remini, pictured above wearing the self-satisfied smirk of someone who just might stiff her former managers out of their commission, terminated her agreement with the Collective “without warning or justification” in October, the suit says.


Alleging breach of oral contract among other charges, the suit is asking for an order stipulating that it’s owed the $ 67,000, plus unspecified damages, interest and court costs.


Remini’s agent has not yet responded to TheWrap’s request for comment.


(Pamela Chelin contributed to this report)


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Officials: 31 suspended in Army day care scandal






WASHINGTON (AP) — At least 31 people were suspended from two Army day care centers at Fort Myer, Va., last week after officials scrutinized their backgrounds and found criminal convictions including fourth-degree sexual assault and drug use, a defense official said Wednesday.


An earlier statement that the 31 people had been fired was erroneous, the official said. Suspension allows for the possibility of reinstatement or dismissal.






The escalating scandal surrounding the Fort Myer Child Development Center has triggered a review of hiring procedures, angered defense leaders, and prompted a late-night telephone call Tuesday from President Barack Obama to the Army secretary. In the call, Obama expressed concern and urged a speedy and thorough investigation.


Details of the scandal emerged this week, nearly three months after two workers were arrested on charges of assaulting children at the Fort Myer center. The slow pace of public revelations enraged Defense Secretary Leon Panetta, who on Tuesday ordered a worldwide review of hiring practices at all military child care centers, schools, youth centers and other facilities that involve children.


According to a defense official, 10 of the 31 suspended workers were involved in minor criminal offenses, 13 were involved in assaults, six were involved in drug use and two were involved in fourth-degree sexual assault. The official noted that neither person with sex assault charges ever ended up on a national registry of sex offenders. In some cases, sexual assaults can involve people over the age of 18 who are having consensual relationships with someone under the age of 18.


After the arrests, the youth services coordinator and deputy at the day care center were reassigned. The center was shut down last Thursday.


The defense official also said the approximately 100 remaining child care employees at Fort Myer are caring for the children at the Cody Child Development Center, also on the base.


Coming on the heels of last week’s massacre of 6- and 7-year-olds in a shooting at their elementary school in Newtown, Conn., the day care scandal caught Obama’s attention and prompted a 10 p.m. telephone call Tuesday to Army Secretary John McHugh.


A White House official said the president relayed his concern about reports of abuse at the day care center and made clear that there must be a zero-tolerance policy when it comes to protecting the children of service members.


The official said Obama urged McHugh to conduct the investigation into its hiring practices quickly and thoroughly. Officials spoke about the investigation and the phone call on condition of anonymity because they were not authorized to discuss them publicly.


Obama has been outspoken in his demands for a quick government reaction to the Newtown shooting that left 20 children and six adults dead.


The Army had no immediate comment on the president’s call.


Pentagon leaders were angry that it took the Army months to disclose the problems to top officials and the public.


Panetta ordered the military-wide review Tuesday shortly after the Army disclosed problems with security background checks of workers at Fort Myer. Pentagon press secretary George Little said department leaders were surprised to hear of the problems and that “clearly this information did not get reported up the chain of command as quickly as we think it should have.”


A defense official said McHugh was first notified of the problems last Friday because, prior to that, it was considered a local law enforcement matter. The official, however, said authorities at Fort Myer took quick action after the Sept. 26th arrests by alerting parents, and began a steadily expanding review of people and policies during October and November.


According to officials, one person was charged with four counts of assault on children and the other was charged with five counts of assault. The alleged actions included hitting, grabbing or pushing the children. In the days after the arrests, the two administrators were dismissed, others were brought in and town hall meetings took place with parents.


Asked about the timing, Army spokesman George Wright said the local installation commander at Fort Myer took immediate action after the arrests to address the problems, and over time officials did some random background checks of employees. When those checks revealed some criminal convictions, every worker’s background was then reviewed.


Wright said it’s not as though the arrests happened and nothing was done. “There were deliberate, prudent and cautious actions taken” as more and more information was learned over the past three months, he said.


Officials, however, said it remained unclear if the initial background checks were not done, were insufficient or simply were ignored during the screening of personnel as they were hired.


“We need to do everything we can wherever our children are entrusted to the care of DOD-employed personnel to insure we have the right personnel with the right background taking care of them,” Little said. “We want to insure that there’s consistency in the standards and policies and practices in hiring wherever military youth are involved.”


___


Associated Press writer Jim Kuhnhenn contributed to this report.


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Officials: 31 suspended in Army day care scandal






WASHINGTON (AP) — At least 31 people were suspended from two Army day care centers at Fort Myer, Va., last week after officials scrutinized their backgrounds and found criminal convictions including fourth-degree sexual assault and drug use, a defense official said Wednesday.


An earlier statement that the 31 people had been fired was erroneous, the official said. Suspension allows for the possibility of reinstatement or dismissal.






The escalating scandal surrounding the Fort Myer Child Development Center has triggered a review of hiring procedures, angered defense leaders, and prompted a late-night telephone call Tuesday from President Barack Obama to the Army secretary. In the call, Obama expressed concern and urged a speedy and thorough investigation.


Details of the scandal emerged this week, nearly three months after two workers were arrested on charges of assaulting children at the Fort Myer center. The slow pace of public revelations enraged Defense Secretary Leon Panetta, who on Tuesday ordered a worldwide review of hiring practices at all military child care centers, schools, youth centers and other facilities that involve children.


According to a defense official, 10 of the 31 suspended workers were involved in minor criminal offenses, 13 were involved in assaults, six were involved in drug use and two were involved in fourth-degree sexual assault. The official noted that neither person with sex assault charges ever ended up on a national registry of sex offenders. In some cases, sexual assaults can involve people over the age of 18 who are having consensual relationships with someone under the age of 18.


After the arrests, the youth services coordinator and deputy at the day care center were reassigned. The center was shut down last Thursday.


The defense official also said the approximately 100 remaining child care employees at Fort Myer are caring for the children at the Cody Child Development Center, also on the base.


Coming on the heels of last week’s massacre of 6- and 7-year-olds in a shooting at their elementary school in Newtown, Conn., the day care scandal caught Obama’s attention and prompted a 10 p.m. telephone call Tuesday to Army Secretary John McHugh.


A White House official said the president relayed his concern about reports of abuse at the day care center and made clear that there must be a zero-tolerance policy when it comes to protecting the children of service members.


The official said Obama urged McHugh to conduct the investigation into its hiring practices quickly and thoroughly. Officials spoke about the investigation and the phone call on condition of anonymity because they were not authorized to discuss them publicly.


Obama has been outspoken in his demands for a quick government reaction to the Newtown shooting that left 20 children and six adults dead.


The Army had no immediate comment on the president’s call.


Pentagon leaders were angry that it took the Army months to disclose the problems to top officials and the public.


Panetta ordered the military-wide review Tuesday shortly after the Army disclosed problems with security background checks of workers at Fort Myer. Pentagon press secretary George Little said department leaders were surprised to hear of the problems and that “clearly this information did not get reported up the chain of command as quickly as we think it should have.”


A defense official said McHugh was first notified of the problems last Friday because, prior to that, it was considered a local law enforcement matter. The official, however, said authorities at Fort Myer took quick action after the Sept. 26th arrests by alerting parents, and began a steadily expanding review of people and policies during October and November.


According to officials, one person was charged with four counts of assault on children and the other was charged with five counts of assault. The alleged actions included hitting, grabbing or pushing the children. In the days after the arrests, the two administrators were dismissed, others were brought in and town hall meetings took place with parents.


Asked about the timing, Army spokesman George Wright said the local installation commander at Fort Myer took immediate action after the arrests to address the problems, and over time officials did some random background checks of employees. When those checks revealed some criminal convictions, every worker’s background was then reviewed.


Wright said it’s not as though the arrests happened and nothing was done. “There were deliberate, prudent and cautious actions taken” as more and more information was learned over the past three months, he said.


Officials, however, said it remained unclear if the initial background checks were not done, were insufficient or simply were ignored during the screening of personnel as they were hired.


“We need to do everything we can wherever our children are entrusted to the care of DOD-employed personnel to insure we have the right personnel with the right background taking care of them,” Little said. “We want to insure that there’s consistency in the standards and policies and practices in hiring wherever military youth are involved.”


___


Associated Press writer Jim Kuhnhenn contributed to this report.


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