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December 14, 2011

Militants armed with rocket-propelled grenades and automatic weapons attacked and destroyed at least 22 oil tankers parked in Pakistan, carrying fuel for NATO troops in Afghanistan, a senior Pakistani police official told CNN. At least seven militants on motorcycles took part in Thursday night's attack, said police official Hamid Shakeel. All seven escaped the scene, he said.

The attack took place at a terminal just outside of Quetta, the capital of Balochistan province, where the trucks had been parked since November 26, Shakeel said. On November 26, the Pakistani government shut down both NATO supply routes through Pakistan to Afghanistan in protest of a NATO airstrike that had killed 24 Pakistani soldiers earlier in the day.

The airstrike was the latest blow to an already stormy partnership between the United States and Pakistan and plunged relations into perhaps the worst crisis since the two countries agreed to join forces in the fight against Islamist militancy after the 9/11 terrorist attacks.Roughly 40% of supplies for NATO forces in Afghanistan travel through Pakistan.

During the past two years militants have increasingly targeted NATO tankers and supply trucks in an attempt to disrupt two key supply routes and undermine the NATO mission in neighboring Afghanistan.The attacks have forced NATO to increasingly use alternative routes through central Asia. Police said there were no reports of any injuries immediately after the attack.

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The scandal-hit Olympus Corp. will appoint a board to decide whether the Japanese company should take legal action and file criminal complaints against executives who helped hide $1.7 billion in losses, the company president said Wednesday.

The comments from Olympus President Shuichi Takayama come a day after the findings of a scathing independent panel report that suggested the Japanese company "should remove its malignant cancer. "The management was rotten to the core, and infected those around it," the panel's report said.

The panel, led by a former Japanese Supreme Court judge, detailed $1.7 billion of hidden losses from failed investments in the 1990s by the camera and medical equipment maker. The report, issued Tuesday, blasted the culture of the company that allowed the losses to be disguised in dubious fees and overvalued payments for companies, as well as the tight control of former company Chairman Tsuyoshi Kikukawa.

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Olympus has lost half its share value in the wake of the October 14 firing of former CEO Michael Woodford, the first foreigner to lead the company, after Woodford questioned the company's accounting. After Woodford went public with his claims, the company's share value dropped by as much as 75%. Three former executives, including Kikukawa, have since resigned from the company's management.

"One had to be prepared to be kicked out of the company in order to make objection even if it was the right thing to do (this is also apparent in how Woodford was treated)," the panel wrote in its report.

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The panel reiterated its earlier announcement that their investigation found no link to "anti-social forces," a euphemism to Japanese organized crime. Company officials said in a statement that the report "includes both new revelations and recommendations on the future management of Olympus (and) will be taken into serious consideration by the company."

The independent panel recommended the resignation of the entire Olympus board. Takayama said at Wednesday's press conference that he and the board will resign, but not until the "exact responsibilities" of wrongdoing are revealed by investigators. Resignations and changes to company management would likely come after a shareholder's meeting sometime in February.

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The company faces a December 14 deadline to resubmit its financial statement to the Tokyo Stock Exchange or face delisting. Company officials have repeatedly said they will turn in the required documents before next week's deadline.

The Olympus saga started with a five-page expose in Japanese magazine FACTA -- a small circulation magazine that has only nine-staff -- on July 20 that raised questions over advisory fees of $687 million paid in 2008 for the purchase of Gyrus, a UK medical instruments firm. The article also questioned the $773 million paid for three small Japanese companies -- a face cream maker, a plastic container maker and a recycling business, each with fewer than 50 employees. Woodford has led a public campaign since his dismissal to get rid of the company board, and has said he would return to run the company if asked.

"The panel's report has made one thing painfully clear: the massive scale of the malfeasance from which the present directors and statutory auditors persistently averted their gaze," Woodford said in a statement. "I sought to call attention to the wrongdoing through a series of six letters in English and Japanese, copied to all the members of the board, and through the submission of a damning report by Price Waterhouse Coopers. Yet not a single director stood up in support of my efforts to expose what had taken place." Takayama said the board will decide whether to bring Woodford back at the next shareholders meeting. "Woodford did what we all couldn't do, so we praise him for that," Takayama said.

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The deadly attack in Kabul on Shi'ite worshippers celebrating the feast of Ashura adds one more layer to the country's overlapping security crises. And they evoke violent sectarian rivalries in Iraq and Pakistan, where animosity between Sunni and Shia runs deep. Afghanistan has its own cultural rifts -- between ethnic Pashtun and Tajik, for example -- but it's rare to see such an explosion of religiously motivated violence. Kate Clark, with the Afghan Analysts Network in Kabul, described the attack as "a real shock."

"Whatever else has happened in the past 30 years we haven't had this sort of sectarian attack aimed at killing lots of people," she told CNN by phone from the Afghan capital. The first claim of responsibility for the bombing in the Afghan capital has come from a militant Sunni group in Pakistan with a history of sectarian attacks against Shia. A man identifying himself as a spokesman for Lashkar-e-Janghvi al Almi, a group with links to al Qaeda and the Pakistan Taliban, claimed responsibility for the attack in a call to Radio Mashaal, a Pashto-language station in Pakistan sponsored by the United States government. A similar call was reportedly made to the BBC's Urdu-language service.

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The group is an offshoot of the powerful Lashkar-e-Janghvi (LeJ), which has a record of high-profile suicide bombings in Pakistan, including the attack on the Marriott Hotel in Islamabad in 2008. Al-Almi's most destructive attack to date was a double suicide bombing in northwest Pakistan last year. The bombers -- wearing burkas -- killed 42 people belonging to tribes that opposed the Pakistan Taliban, also known for its antipathy toward Shia.

If the claim by Al-Almi proves valid, it would not surprise some Afghan Shia, who were quick to point the finger at some form of Pakistani involvement in the attacks Tuesday. LeJ has a long history of targeting the Hazara Shia community in Pakistan. The Hazara are numerous in both Pakistan and Afghanistan, and make up much of Afghanistan's Shia minority. They have endured decades of persecution in both countries, and Sunni militants have frequently painted then as collaborators with occupying powers.

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