NYC-area trash rots for months in Buffalo rail yard
New York: Three hundred eighty-eight containers of garbage from the New York City area have been rotting in a Buffalo, New York, rail yard since December, reviving memories of New York City's infamous garbage barge of 1987, when six states rejected its trash because they feared it was toxic. Referring to the garbage containers in Buffalo, Linda White, an assistant New York State attorney general, said, "At times they stink a lot." The rotting trash is just another blow to hit the depressed city which manufacturers no longer prize for its Lake Erie location. Some 500 teachers may have to be laid off because of Buffalo's latest budget crunch, and the state is weighing seizing control of its finances. White has sued the shipper, Chem-Rail, and Canadian Pacific Railway to get the trash removed from a rail yard she described as an island in a business and residential district. White said the trash containers were overloaded, so the trucks that carried them got stuck in the mud at the rail yard.
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WorldCom had two sets of financial books-examiner
Philadelphia: Bankrupt telephone company WorldCom Inc. created special set of financial reports that masked its true operating results and lacked internal controls to oversee top executives' merger decisions, according to a report released on Monday by a court-appointed examiner. WorldCom's "culture was dominated by a strong chief executive officer, who was given virtually unfettered discretion to commit vast amounts of shareholder resources and determine corporate direction without even the slightest scrutiny," the report said. WorldCom's board rubber-stamped merger decisions, failed to properly see the company's accumulation of $41 billion in debt or control a stock sale by its former CEO Bernie Ebbers, according to the report compiled by former US Attorney General Richard Thornburgh, who was appointed as an independent examiner by the bankruptcy court.
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New EU law bursts dot-com tax bubble
London: They've survived the bursting of the tech bubble, a global economic downturn and the occasional virus, but now overseas Internet retailers may see their European profit push derailed by one of the oldest drags on business: tax. On July 1, a new EU directive goes into effect requiring all Internet firms to account for value added tax, or VAT, on "digital sales". The law adds a 15 to 25 per cent levy on select Internet transactions such as software and music downloads, monthly subscriptions to an Internet service provider and on any product purchased through an online auction anywhere in the 15-member bloc of nations.
The VAT tax is nothing new for some Net firms. European dot-coms have been charging customers VAT since their inception.
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Citigroup board gets failing grade from researcher
New York: A corporate governance research firm lashed out against what it said were the least effective corporate boards among the largest US companies, saving its primary ire for Citigroup Inc. The Corporate Library, based in Portland, Maine, gave failing grades to at least nine other companies, including J.P. Morgan Chase and SBC Communications. It said its board effectiveness ratings were based on "the practice of independent judgment." Among the chief factors in its rankings was the pay of chief executives and acting on the recommendations of shareholders. "Directors who cannot say no to excessive pay are not adequately representing the interest of the shareholders," said Paul Hodgson, senior analyst for the research firm. Representatives of Citigroup, J P Morgan, and SBC could not immediately be reached early on Monday, but each company responded in a Wall Street Journal story on Monday about the report.
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American Airlines, Amex to issue co-branded card
New York: American Airlines, the world's largest airline, on Monday linked up with American Express Co. to issue a co-branded charge card that they say can help business travellers save money. The companies said the American Express Business ExtrAA Corporate Card, which will carry American's logo and be available in the third quarter, will let mid-sized companies save up to 10 per cent on eligible travel on the carrier. The card will also provide Business ExtrAA bonus points to companies, which can be redeemed for travel and other rewards, the companies said. Anre Williams, an American Express senior vice president, said in a statement the card will give cash back on flexible, last-minute fares. American Airlines already offers co-branded "AAdvantage" charge and debit cards in the United States through its venture with Citibank, a unit of Citigroup Inc.
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Nissan JV in China set to open on July 1
Beijing: Japan’s third-largest car maker, Nissan Motor Co, said on Monday its $2 billion joint venture with China’s third-largest car firm would open on July 1, with six new models lined up to tackle the fast-growing market. Nissan, which is in the middle of a corporate turnaround, teamed up with Dongfeng Motor Corp last September, finally giving the Japanese auto giant a foothold in one of the fastest-growing car markets in the world. Although Nissan trails rivals like Honda Motor Co and General Motors in China, what it has lost in time it is trying to make up for with scope, analysts said. The venture will make 220,000 cars and 330,000 commercial vehicles a year by 2006, executives from the companies said. Under one of the broadest alliances ever between Chinese and foreign automakers, Nissan said it has put up $1 billion in cash, while Dongfeng is providing assets and factories worth an equal amount. “It’s quite a risky bet. But unless they take such a risky step it’ll difficult for them to catch up,” said Lawrence Ang, an auto industry analyst with Deutsche Securities Asia Ltd. “Even though they are late, they are dedicated to achieving something in China,” Ang said.
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