Consumers let down badly by electricity market: ACCC report


Michelle Grattan, University of Canberra

The Australian Competition and Consumer Commission has called for sweeping reform of the national electricity market to lower power prices and restore consumer confidence.

In its damning report, to be released on Wednesday, the ACCC says consumers face a confusing and unfair market. Discounts are misleading and need to be made fairer; customers should be able to compare these against a benchmark rate set by the Australian Energy Regulator.

The ACCC backs the Turnbull government’s push for its National Energy Guarantee (NEG), calling on other governments to commit to it. The federal government is presently trying to bed down the NEG with states and territories, against a distracting background of criticism from former prime minister Tony Abbott.

Prime Minister Malcolm Turnbull will deliver a consumer-focused speech on energy and power prices to the Queensland Media Club on Wednesday.

The ACCC’s recommendations would require action by federal and state governments.

The ACCC says the electricity market is facing its most challenging time, with the present situation being unacceptable and unsustainable. But it holds out the prospect of “significant gains” for consumers and businesses if the changes it recommends are made.

Urging a reset, it says reform can “bring down prices and restore consumer confidence and Australia’s competitive advantage”. Unnecessary costs need to be got out of the system to save consumers hundreds of dollars annually.

The ACCC urges changes to get greater competition among wholesalers and retailers, and says network charges must fall.

Tougher powers should be given to the Australian Energy Regulator to deal with “market manipulation”.

The customer transfer process needs to be speeded up, enabling people to move to new offers quickly. Special conditions like pay-on-time discounts should not operate in a harsh punitive manner.

The ACCC says small businesses should get access to the same improved rules as households.

Third-party sites showing comparisons in prices should state their commissions, it says.

The ACCC says there is a case for government support to underpin long-term contracts for large commercial and industrial users that brings on new dispatchable generation from operators that do not currently have a large market share.

It says big generators and retailers (“gentailers”) have market strength and often charge a large premium when selling wholesale electricity to their own retail operations.

The ConversationIt recommends a cap on any further merger or acquisition by a company with more than 20% generation market share – although such a company would be permitted to build new generation capacity.

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

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Vital Signs: Interest only loans are an economic debacle that could bust the property market


Richard Holden, UNSW

Vital Signs is a regular economic wrap from UNSW economics professor and Harvard PhD Richard Holden (@profholden). Vital Signs aims to contextualise weekly economic events and cut through the noise of the data affecting global economies.

This week: This risks of interest only loans that the RBA is ignoring and more revenue for the government ahead of the budget.


Australian taxpayers won’t face a rise in taxes now that Treasurer Scott Morrison announced the government will not increase the Medicare Levy by 0.5% as planned. This was to originally fully fund the National Disability Insurance Scheme (NDIS).

This is on the back of strong company tax receipts stemming from companies using up carry-forward losses accumulated in the wake of the financial crisis.

Australian Bureau of Statistics data for 2016/17, released this week, showed tax revenue for the federal government (including taxes received from other levels of government and public corporations) increased A$19.4 billion (5.2%).

The averted tax rise will be welcome news for Australian taxpayers. It also wedges the Labor opposition.

They have said that the NDIS was fully funded on their watch. So now they are proposing a 0.5% tax rise on all incomes over A$87,000. That’s pretty close to full-time male average weekly earnings and comes close to capturing half of Australian households.

The federal budget on May 8 will no doubt have further goodies for voters in the run-up to the net election, which will be either this year or relatively early next year. As usual, we will be reporting directly from the budget lockup.




Read more:
Greenspan’s ‘uncertainty principle’ and the evolution of Fedspeak


One of the central economic puzzles of the last several years has been persistently low inflation in all advanced economies, despite general economic recovery and falling unemployment.

This week’s Australian consumer price inflation figures revealed a 0.4% increase for the March quarter, and 1.9% for the last 12 months. The March quarter figure was below market expectations of 0.5%, and also the previous (December quarter) figure of 0.6%. Education prices were up 2.6% on the quarter, and health prices up 2.2% (or 4.2% for the year to March 2018).

This puts inflation still below the Reserve Bank of Australia’s (RBA) target band of 2-3%. That band, of course, has been in place since the early 1990s – beginning with this speech by then governor Bernie Fraser.

Numerous central banks around the world have a similar approach. The basic idea is that a central bank can build a reputation over time to commit to monetary policy such that inflation lies in the band.

Now there are pros and cons to this approach to monetary policy, and it has its critics. But that is another tale for another day.

Just assuming that inflation targeting is the correct objective, how is the RBA doing? Well, one small hitch in the plan is that inflation has been outside the band for a long time now (basically since 2014), as the RBA’s own figures show.

Given the level of unemployment in Australia, low wages growth, and stubbornly low inflation, the RBA probably should have cut rates further a fair while back. But they seem, probably rightly, terrified of further fuelling a potential housing bubble.

Meanwhile, the credibility of their commitment to the inflation target withers. If only the regulation of our banking and finance sector had been better for the last, say, decade or two.

Speaking of such regulation, RBA assistant governor Chris Kent gave a speech Tuesday about the important issue of interest-only loans. Kent’s speech was significant because it followed up on remarks in the RBA minutes about the same issue that I discussed in this column last week.

It seems that the RBA “house view” on interest only loans is as follows. There could be a problem but the Australian Prudential Regulation Authority (APRA) stepped in and the banks have voluntarily tightened lending standards recently. Also because the average household with an interest only loan has a buffer of savings, everything will be fine. Nothing to see here.

I hope the RBA’s conclusion is right, but I know for sure that the reasoning is not. It’s actually the marginal household’s financial position and behaviour that matters, not the average household.

The average United States borrower with an adjustable-rate mortgage did not default in 2007, 2008 or 2009. But these mortgages were a huge contributor to the financial crisis, along with subprime mortgages.

Kent dutifully laid out the risks from interest only loans, saying:

Because there’s no need to pay down principal initially, the required payments are lower during the interest-only period. But when that ends, there is a significant step-up in required payments (unless the interest-only loans are rolled over).

Indeed, unless they can be rolled over. Which they can’t now because of APRA and the banks finally doing something.

Now, prices (interest rates) on interest only loans have gone up as part of the bank response. This has led a bunch of folks to shift to amortising loans, where the principal of the loan is paid down over the life of the loan. So those borrowers who haven’t shifted to these loans already, really don’t want to.

Maybe they can’t afford to because of the increased repayments, that can jump 30% or more per month.

So what does happen? First Kent says many borrowers save ahead of time, expecting a rise in repayments. Yes, the prudent ones.

But how many non-prudent borrowers have there been in the Australian property market in recent years? Hint: a lot.

Kent also points to borrowers who seek to refinance their interest only loan. But banks don’t really want to, and APRA doesn’t want to let them. And who is going to be able to? The safer borrowers who did save and so don’t really need to avoid amortisation. The risky borrowers can’t refinance.

Kent says some borrowers will have to cut their spending. Chuckle, chuckle. And the final option is to sell their house.

Sure, no problem, unless lots of folks want to do that all at once. Then it’s a fire sale that detonates the housing market.

I really do hope we escape the interest only debacle unscathed. But if we do it will be pure, dumb luck, not a consequence of good design or sound regulation.

It definitely doesn’t justify the RBA’s house view in Kent’s concluding remarks that:

The substantial transition away from interest-only loans over the past year has been relatively smooth overall, and is likely to remain so. Nevertheless, it is something that we will continue to monitor closely.

The ConversationPerhaps a there should have been a little more monitoring before interest only loans got to be 40% of all loans and more than half of the loan book of one of our biggest banks.

Richard Holden, Professor of Economics and PLuS Alliance Fellow, UNSW

This article was originally published on The Conversation. Read the original article.

Politicians: please ease off on ‘announceables’ until after the electricity market review



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Current political intervention in the energy market is haphazard and disconnected.
chriscrowder_4/Flickr, CC BY-NC-SA

David Blowers, Grattan Institute and Kate Griffiths, Grattan Institute

A series of dramatic events over the past year, most notably the September statewide blackout in South Australia, have revealed an electricity system under strain, and left many Australians worried about the reliability of their power supply. The Conversation

In response, state and federal politicians have announced a series of uncoordinated and potentially expensive interventions, most notably the Turnbull government’s Snowy Hydro 2.0 proposal and the South Australian government’s go-it-alone power plan.

Yet all of these plans pre-empt the Finkel Review, to be released early next month. Commissioned by state and federal governments and led by Australia’s chief scientist Alan Finkel, the review is expected to provide a new blueprint for the National Electricity Market (NEM).

Clearly, Australia is struggling to manage the transition to a zero- or low-emission electricity grid, and some commentators have concluded that the NEM is broken.

In our report Powering Through, released today, we argue that it is too early to give up on the market. But what we really need is substantial market reforms, rather than piecemeal government investments in various energy projects.

Australia’s troubled transition

The problems are everywhere. Consumers have been hit with a 70% hike in real-terms electricity bills over the past decade, and there is more to come. Wholesale prices for electricity in most eastern states were twice as high last summer as the one before.

New vulnerabilities continue to emerge. The headline-grabber was South Australia’s blackout – the first statewide blackout since the NEM was formed in 1998 – but there have been other smaller blackouts and incidents too.

Poisonous politics means Australia is also failing to stay on track to hit its 2030 climate targets. The mixed messages on climate policy; the seemingly ad hoc public investment announcements; the threat of direct intervention in the activities of the market operator – all of this has created enormous uncertainty for private investors.

Meanwhile, the clock is ticking: Australia has enough electricity generation capacity for now, but more will be needed in the decade ahead.

The energy market is in a difficult transition.
georg_neu/Flickr, CC BY-NC

First, do no harm

There is currently an acute danger of politicians panicking and rushing into decisions that will only push electricity prices higher, and make the task of reducing Australia’s emissions harder.

Already, federal and state governments are committing taxpayers’ money to new energy investments. This is premature, with the Finkel Review’s recommendations not yet released. Stampeding white elephants loom ominously on the horizon.

Given the current uncertainties, it is vital not to grasp for expensive “solutions” or to lock in plans too soon. We do not yet know what technology mix will be needed in the future. Maintaining flexibility through the transition will ensure we can take advantage of the best solutions as they emerge.

‘No regrets’ short-term reforms

There are some “no regrets” moves that can and should be made, to address the short-term risks to the electricity system and buy time to resolve the longer-term ones. Australia should build on existing low-cost mechanisms before making major capital investments or redesigning the market.

The immediate challenge is to reduce the risk of blackouts next summer, in South Australia and Victoria especially. Most blackouts happen because something in the system breaks. Some simple changes to the market rules, like the recent AEMO and ARENA announcement to pay consumers to cut their electricity use, would make a big difference to managing equipment failures when they inevitably arise.

To ensure reserves are on hand, some mothballed generators should be recalled to service. Pleasingly, Origin Energy and Engie have already struck a deal to enable the restart of the second turbine of the Pelican Point generator in South Australia.

The longer-term task

The cheapest and most effective way to reduce long-term risks is to rebuild investor confidence. That requires Australia to agree, finally, on a credible climate policy. A carbon price is the best such policy, but any bipartisan policy that works with the electricity market and is capable of hitting Australia’s emissions targets will be a vast improvement on what we have now.

The transition to a zero-emissions electricity sector will be difficult. Even given a credible climate policy, there are still questions as to whether the current electricity market will be able to meet our future needs. And that’s without even mentioning the gas market, which is frankly a mess.

Politicians should begin by adopting pragmatic market reforms and giving clear direction on climate and energy policy. At the very least, they should wait until Finkel delivers his recommendations.

Hopefully the Finkel Review will define Australia’s energy security and emissions reduction needs, and provide a strong platform for politicians to work from. If so, a competitive market will find the cheapest path to a reliable and low-emissions electricity future.

The danger is that partisan politics will make the best policies untenable. If that happens, we can expect the blame to be shifted onto the market, which will be described as having “failed” – but the truth is that it will have been systematically (if not quite intentionally) destroyed.

More likely still is that governments give up on the market without giving it a chance. Scott Morrison’s budget promise of new federally owned power generation set a worrying precedent. If recent announcements deter private investors, still more government investment will be needed, which will shift yet more risk and cost onto taxpayers.

There’s a real danger of politicians focusing on “announceables” and shying away from the market reforms that will make the biggest difference to the affordability, reliability and sustainability of our electricity supply.

David Blowers, Energy Fellow, Grattan Institute and Kate Griffiths, Associate, Grattan Institute

This article was originally published on The Conversation. Read the original article.

Three charts on: the incredible shrinking renewable energy job market


Paul Burke, Australian National University

This is the first piece in our new Three Charts series, in which we aim to highlight interesting trends in three simple charts. The Conversation

Australia is embarking on a transition from an electricity system that relies largely on coal to one that may one day be 100% renewable. Last week’s closure of the Hazelwood coal-fired generator was an important milestone on this path.

The development of the renewables sector has not, however, been a smooth ride.

Estimates released by the Australian Bureau of Statistics suggest that the number of direct full-time equivalent jobs in renewable energy activities has continued to fall from its 2011-12 peak. Over a period in which the Australian economy saw around 600,000 additional people get jobs, employment in the renewables sector has been going backwards.

https://datawrapper.dwcdn.net/7pTc0/2/

A small employer

The renewables sector is estimated to have directly provided only 11,150 full-time equivalent jobs in 2015-16. The Australian labour force exceeds 12.6 million people. The sector thus makes a small contribution to national employment, although one that is quite important in some local economies.

Around half of the jobs in renewables in 2015-16 were in installing (and maintaining) rooftop solar systems. Hydroelectricity generation provides 1,840 full-time equivalent jobs, a number that is likely to increase if pumped storage is to make a larger contribution to smoothing Australia’s electricity supply. Biomass provides 1,430 full-time jobs, and the wind industry around 620.

The fact that renewables is a small employer – especially once installations are up and running – is not a bad thing. If renewables were labour-intensive, they would be expensive.

https://datawrapper.dwcdn.net/FS39f/2/

Up then down

The rise and then fall in renewables jobs is primarily a result of what has happened to installations of rooftop solar. The annual number of small-scale solar installations (PV and solar water heaters) skyrocketed over the four years to 2011. This rapid growth was spurred by generous feed-in-tariffs, rebates, and rules for federal government solar credits. There was also a national program to install solar panels on schools.

When these arrangements were curtailed, uptake fell. Annual installations of small-scale solar PV and water heaters are down by more than 60% from their peak. We are still installing a lot of new systems (more than 183,000 in 2016), but fewer than before. Employment estimates for small-scale solar closely track installation rates. The decline in employment in the wind energy sector is also worth noting.

The largest fall in renewables jobs has been in Queensland, a state that substantially tightened its feed-in-tariff scheme for rooftop solar in several steps from 2011 on. Queensland also holds the title of having Australia’s highest residential rooftop solar PV penetration rate (32%). South Australia is not far behind, at 31%.

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Ramping up large-scale renewables

Recent years of policy uncertainty and backtracking have not helped the rollout of large-scale renewables. The termination of Australia’s carbon price and downwards renegotiation of the Renewable Energy Target had chilling effects on investment.

Those events are now behind us. With continued reductions in the cost of renewables, brighter days for the sector appear to be ahead, especially if our governments get policy settings right.

We can expect particularly rapid growth in jobs installing large-scale solar PV. Just last week, for example, it was announced that South Australia is to have a large new solar farm.

Paul Burke, Fellow, Crawford School, Australian National University

This article was originally published on The Conversation. Read the original article.

Muslims in Bangladesh Beat, Deprive Christians of Work


Refusing to recant Christianity, victims are attacked on rumors of disrespecting Islam.

LOS ANGELES, November 2 (CDN) — Muslim villagers last month beat a 63-year-old Christian convert and his youngest son because they refused to return to Islam, the father told Compass.

The next day, another Christian in a nearby village was beaten and robbed in related violence in southwestern Bangladesh.

Aynal Haque, 63, a volunteer for Christian organization Way of Life Trust, told Compass that his brothers and relatives along with Muslim villagers beat him and his son, 22-year-old Lal Miah, on Oct. 9 when they refused to recant Christianity. The family lives at Sadhu Hati Panta Para village in Jhenaidah district, some 250 kilometers (155 miles) southwest of the capital city, Dhaka. It is in the jurisdiction of Sadar police station.

Haque’s relatives and villagers said that he had become Christian by eating pork and by disrespecting the Quran, he said.

“I embraced Christianity by my own will and understanding, but I have due respect for other religions,” Haque said. “How can I be a righteous man by disrespecting other religions? Whatever rumors the villagers are spreading are false.”

At a meeting to which Haque was summoned on Oct. 9, about 500 men and women from several villages gathered, including local and Maoist party leaders.

“They tried to force me and my son to admit that we had eaten pork and trampled on the Quran to become Christian,” Haque said. “They tried to force us to be apologetic for our blunder of accepting Christianity and also tried to compel us to go back to Islam. I told them, ‘While there is breath left in our bodies, we will not reject Christianity.’

“When we denied their allegation and demand, they beat us severely. They ordered us not to mix with other Muslim villagers. They confined us in our house for five days.”

Haque has worked on his neighbors’ land for survival to supplement the meager income he earns selling seeds in local markets, but the villagers have now refused to give him work, he said.

“Every day I earn around 50 taka to 100 taka [70 cents to US$1.40] from the seed business,” he said. “Some days I cannot earn any money. So, I need to work villagers’ land for extra money to maintain my family.”

His youngest son also worked in neighbors’ fields as a day-laborer, besides attending school.

“We cannot live if we do not get farming work on other people’s land,” Haque said.

Haque, his wife and youngest son received Christ three years ago, and since then they have faced harassment and threats from Muslim neighbors. His other grown son and two daughters, as well as a son-in-law, also follow Christ but have yet to be baptized. There are around 25 people in his village who came to Christ under Haque’s influence; most of them remain low-profile to avoid harassment from the villagers, he said.

The weekly worship service in Haque’s shanty house has been hampered as some have been too fearful to attend, and the 25 members of the church fear the consequences of continuing to meet, Haque said.

Officials of Way of Life Trust tried to visit the area to investigate the beating of Haque and his son but were unable due to security risks, said Jatish Biswas, the organization’s executive director. They informed the district police chief, who instantly sent forces to provide safety for the Christians, Biswas said.

Villagers thought that if they were able to get Haque to renounce Christianity, then the other Christians would quickly return to Islam, according to Biswas.

 

Reverberation

Hearing of the incident in Sadhu Hati Panta Para the next day (Oct. 10), Muslims in Kola village about five kilometers (nearly three miles) away beat a Christian friend of Haque’s and robbed his seed shop.

Tokkel Ali, 40, an evangelist in one of the house churches that Way of Life Trust has established, told Compass that around 20 people arrived at his shop at about 11 a.m. and told him to go with them to Haque’s house.

“The presence of so many people, most of whom I did not know, and the way they were talking, seemed ominous to me, and I refused to go with them,” Ali said. “I said, ‘If he wants me to go to his house, he could call me on my mobile.’”

One person in the crowd pointed toward Ali, saying that he was a Christian and had made otherwise innocent people Christians by them feeding pork and letting them disrespect the Quran, said Ali. Islam strictly prohibits eating pork.

“That rumor spread like wildfire among other Muslims,” Ali said. “All of a sudden, a huge crowd overran me and started beating me, throwing my seeds here and there.”

Ali said he lost consciousness, and someone took him to a nearby three-storey house. When he came to, he scrambled back to his shop to find his seeds scattered, and 24,580 taka (US$342) for buying seed had been stolen, along with his bicycle.

Accustomed to earning just enough each day to survive, Ali said it would be impossible for him to recover and rebuild his business. He had received loans of 20,000 taka (US$278) from Grameen Bank (Nobel Peach Prize laureate Muhammad Yunus’ micro-finance entity), 15,000 taka (US$209) from the Bangladesh Rural Advancement Committee and 11,000 taka (US$153) from Way of Life Trust to establish the business. Ali ran a similar seed business in Dakbangla market in Kola village.

“How can I pay back a weekly installment of 1,150 taka [US$160] to the micro-credit lending NGOs [Non-Governmental Organizations]?” he said. “I have already become delinquent in paying back some installments after the looting of my money and shop. I’ve ended up in deep debt, which has become a noose around my neck.”

Ali said he has not dared filed any charges.

“If I file any case or complain against them, they will kill me, as this area is very dangerous because of the Maoists,” he said, referring to a banned group of armed rebels with whom the villagers have links. “Even the local administration and the law enforcement agencies are afraid of them.”

Ali has planted 25 house churches under Way of Life Trust serving 144 people in weekly worship. Baptized in 2007, he has been following Christ for more than 10 years.

“Whenever I go to bazaar, people fling insults at me about that beating,” he said. “Everyone says that nothing would have happened if I had not accepted Christianity, an abhorrent religion to them. People also say that I should hang myself with a rope for renouncing Islam.”

Since the beating, he has become an alien in his own village, he said.

“Whatever insinuation and rumors they spout against me and other believers, there is no language to squash it,” he said. “I have to remain tight-lipped, otherwise they will kill me.”

He can no longer cross the land of one of his neighbors in order to bathe in a nearby river, he said.

“After that incident, my neighbor warned me not to go through his land,” he said. “Now I take a bath in my home from an old and dysfunctional tube-well. My neighbors say, ‘Christians are the enemy of Muslims, so don’t go through my land.’ It seems that I am nobody in this village.”

Biswas of Way of Life Trust told Compass that Christians in remote villages lack the freedoms guaranteed in the Bangladeshi constitution to practice their faith without any interference.

“Where is religious liberty for Haque and Ali?” Biswas said. “Like them, many Christians in remote villages are in the throes of persecution, though our constitution enshrined full liberty for religious minorities.”

Way of Life Trust has aided in the establishment of some 500 house churches in Bangladesh, which is nearly 90 percent Muslim. Hinduism is the second largest religion at 9.2 percent of the 153.5 million people, and Buddhists and Christians make up less than 1 percent of the population.

Report from Compass Direct News

Somali Family Laments Kidnapping of Christian Girl


Islamic extremist insurgents abducted 15-year-old nearly eight months ago.

MOGADISHU, Somalia, October 6 (CDN) — An underground Christian family from central Somalia is agonizing over the kidnapping of their daughter nearly eight months ago by Islamic militants bent on punishing those who leave Islam.

Ghelle Hassan Aded told Compass that he has not seen his 15-year-old daughter, Anab Ghelle Hassan, since Islamic extremists from the al Shabaab (“the Youth”) insurgency kidnapped her on Feb. 15. Certain that the militants would come after the rest of the family, they immediately fled, said Aded, who spoke with Compass from an undisclosed location in Somalia’s autonomous region of Puntland.

The family formed part of a growing movement of underground Christians in Dhusa Mareb, capital of Galgaduud Region in central Somalia, said other sources in Somalia who confirmed the kidnapping. Aded and his family had become Christians in 2001 while living in Kampala, Uganda. In 2008, the family returned to Somalia and settled in Dhusa Mareb, where their tribesmen live.

The al Shabaab insurgents fighting the Transitional Federal Government soon began monitoring the family’s activities. Aded said they took note that the family did not attend mosque, and on several occasions the insurgents or other Muslims questioned him. In Somalia, Christians hold small meetings in secret and are advised not to keep Bibles or other Christian literature at their homes; they often have to keep them buried in a hole.

On Feb. 15, Aded and his wife sent young Hassan to the market to buy food, he said; relatives told them later that day that they saw al Shabaab insurgents kidnap her at 10 a.m. as she was going about her business at the local market. Knowing that the insurgents would soon come after the rest of his family, Aded said, he fled immediately with his wife, 11-year-old daughter and 10-year-old son to Puntland.

At their location in Puntland, the family appeared devastated by the kidnapping, with Aded’s wife often weeping over the loss, but they said they maintain hope of seeing Anab again.

“We are increasingly afraid of being discovered by the militants on our trail and wish to go back to Kampala as soon as possible,” Aded said. “After months of monitoring, the militants were convinced that we were practicing Christianity, contrary to their banning of all other religions in Somalia.”

Al Shabaab insurgents control much of southern and central Somalia and have embarked on a campaign to rid the country of its hidden Christian population. With estimates of al Shabaab’s size ranging from 3,000 to 7,000, the insurgents seek to impose a strict version of sharia (Islamic law).  

Al Shabaab was among several splinter groups that emerged after Ethiopian forces removed the Islamic Courts Union, a group of sharia courts, from power in Somalia in 2006. Said to have ties with al Qaeda, al Shabaab has been designated a terrorist organization by several western governments.

The transitional government in Mogadishu fighting to retain control of the country treats Christians little better than the al Shabaab insurgents do. While proclaiming himself a moderate, President Sheikh Sharif Sheik Ahmed has embraced a version of sharia that mandates the death penalty for those who leave Islam.

Report from Compass Direct News

Muslim Youths in Nigeria Destroy Church Buildings, Pastor’s Home


Attacks in Kano state said to stem from hostility by converts to Islam, land dispute.

LAGOS, Nigeria, May 21 (CDN) — Scores of Muslim youths on Wednesday (May 19) besieged church property in Kano state in northern Nigeria, destroying two church buildings and a pastor’s residence. 

One of the buildings and the pastor’s house were set ablaze on the premises of the Evangelical Church Winning All (ECWA) at Kwasam, in the Kiru Local Government Area, while another building under construction was demolished. Youths reportedly numbering more than 100 in the predominantly Muslim area stormed the church grounds.

“The problem started when some Christian youths of ECWA church were converted to Islam,” the Rev. Lado Abdul, chairman of ECWA district in Kano, told Compass. “They swore that the ECWA church would not remain in the area, as they would do everything possible to chase Christians out from Kiru.”

The ECWA pastor whose house was demolished, Gambo Mato, has found shelter in another Christian’s home.

No life was lost during or after the incident as police and State Security Service officers intervened, and traditional rulers, religious leaders and government officials held an urgent meeting to quell potential skirmishes and establish security.

Abdul, however, lamented the denial of rights to Christians in Kano by area Muslims.

“Here in Kano, nobody gives you land to build a church,” he said. “The old churches built before now are being demolished for reasons no one can easily grasp. We have taken our complaint to Sarki Kano [traditional emir of Kano] Alhaji Ado Bayero, and he assured us that something would be done about it. We are looking to the state government to come to our rescue.”

Kano State Police Commissioner Mohammed Gana said that the attack on the church buildings grew out of a land dispute.

“The old church was a mud house, and the ECWA people wanted to rebuild it with blocks,” Gana said. “In the process, there was a disagreement, but we moved in to ensure peace and order.”

Four suspects have been arrested, and an investigation continues, the police chief said.

Elsewhere in Kano state, in Banaka of the Takai Local Government Area, a Baptist church was reportedly demolished on Saturday (May 15).

Kano state, one of 12 states in Nigeria where sharia (Islamic law) is in effect, has been the site of periodic Islamic aggression against the minority Christian community. Last year, when an Islamic extremist sect known as Boko Haram instigated rioting in Bauchi state that killed at least 12 Christians, the firestorm of violence spread to Kano state as well as Borno and Yobe states.

In 2008, hundreds of Muslims took to the streets of Kano city on April 20, attacking Christians and their shops and setting vehicles on fire based on claims that a Christian had blasphemed Muhammad, the prophet of Islam. Thousands of Christians were trapped in church buildings until police could disperse the assailants.

An unidentified Christian was said to have written an inscription on a shop wall that disparaged the prophet of Islam. Muslims at a market in the Sabon Garia area of the city reportedly attacked the Christian, whom police rescued and took to the area police station.

Muslims in large numbers soon trooped to the police station, threatening to set it ablaze unless officers released the Christian to be stoned to death in accordance with sharia, sources said.

Report from Compass Direct News 

Buddhist Extremists Drive Christians from Village in Bangladesh


Villagers upset with establishment of church break up prayer meetings, invade homes.

DHAKA, Bangladesh, May 3 (CDN) — Four Christian families in southeastern Bangladesh left their village yesterday under mounting pressure by Buddhist extremists to give up their faith in Christ.

Sources told Compass that 20 to 25 Buddhists brandishing sticks and bamboo clubs in Jamindhonpara village, 340 kilometres (211 miles) southeast of Dhaka, began patrolling streets on Friday (April 30) to keep the 11 members of the Lotiban Baptist Church from gathering for their weekly prayer meetings. On Saturday, the Buddhist extremists captured four men and beat one woman who had gathered in a home, threatening to kill them if they did not become Buddhists within 24 hours.

Yesterday, the Buddhist extremists attacked the homes of the Baptists two hours before their 1 p.m. worship service, sources said.

“Just two hours before our church service, a group of people swooped into our houses and drove all of us out so we could not attend the church service,” said one church member who requested anonymity.

The Christians captured Saturday night were released after the extremists, who ripped crosses off the walls of their homes, threatened to kill them if they continued praying and worshipping in the area. After yesterday’s attacks, all Christians in Jamindhonpara fled, taking shelter in another village, source said. Jamindhonpara is located in the Lotiban area, Panchari sub-district of Khagrachari district.

“When they come, they do not listen to us,” said the church member. “They arbitrarily do whatever they like. The situation is indescribable – they hunt us down the same way that one hunts down a mad dog to kill it.”

On Saturday the Buddhist villagers chanted anti-Christian slogans as they formed a procession that snaked through the village.

“They chanted in the demonstration, ‘We will not allow any Christian to live in this area,’ ‘We will not allow them to build a church here,’ and ‘Christians cannot live in Buddhists’ areas,’” said one source. “We did not inform the police or army. Informing them is very dangerous. They could even kill us if we complained about them to police and army or the local administration.”

Local Buddhists were infuriated when Christians established a church in the Lotiban area in December; since then, they have been trying to stop all Christian activities. In the campaign to uproot Christianity, they have tried to expel the pastor of Lotiban Baptist Church by means of various threats, source said.

One of the Christians who fled yesterday, 65-year-old Biraj Kumar Chakma, told Compass that they would not go back to Buddhism whatever pressure might come.

“We left everything,” Chakma said. “We can go through any kind of ordeal, but we will not leave Jesus, even in the face of death. I have not seen in my life a book like the Bible. To stick to it, I left my ancestral house under huge pressure of the Buddhists. They applied much force to give up our faith.”

Chakma said that since his daughter became a Christian, she has not been able to live in the village.

“She is living in a hideout for her safety,” he said.

The Rev. Sushil Jibon Tripura, president of Khagrachari district Baptist Fellowship Church, told Compass that the daily life of the Christian villagers has become intolerable, as they have sacrificed their livelihood for their faith.

“Buddhists are not giving them any work,” Tripura said. “They are not allowed to collect drinking water from local deep tube wells. Nobody mixes with them. They are not allowed to shop in the village market. So the Buddhist villagers have ostracized them.”

The United Nations Development Program (UNDP) runs various projects in the area for the development of tribal people, but most the committee members are Buddhists who deprive the Christians of UNDP assistance, he said. The aid includes financial help for ginger cultivation and small cattle farming and cooperative money given through a committee selected from among the villagers.

“When they were Buddhist, they used to get all the aid provided by the UNDP,” Tripura said.  “But when they became Christians, they started facing problems. Recently the committee members took away eight passbooks from Christian villagers given by the UNDP for getting financial help.”

Tripura said he informed the district UNDP office, and officials there said they would look into it.

The United Peoples Democratic Front (UPDF), an armed group in the hill districts that is also a political party, is active in the area. Tripura said some area Buddhists have mobilized only mid-level activists of the UPDF against the Christians.

“Being an inhabitant of this area, I can say that the high-command of the UPDF is not involved here,” he said.

The tribal people of the area share common ancestors and the same social/cultural milieu, he added.

“We are brothers. But the undercurrent of the hatred is religion,” Tripura said. “We are trying to sit with the Buddhist leaders along with the UPDF leaders for resolving the matter in a peaceful manner.”

The UPDF is one of two main tribal organizations in the hill districts, the other being the United People’s Party of the Chittagong Hill Tracts (Parbatya Chattagram Jana Sanghati Samiti, or PCJSS). The PCJSS, formed in 1973, had fought for autonomy in the region for 25 years, leaving nearly 8,500 troops, rebels and civilians killed. After signing a peace accord in 1997 with the Bangladesh government, the PCJSS laid down arms.

But the UPDF, founded in 1998 and based in the Chittagong Hill Tracts, has strong and serious reservations against the Chittagong Hill Tracts Accord signed in 1997. Claiming that the agreement failed to address fundamental demands of the indigenous Jumma people, the UPDF has pledged to fight for their full autonomy.

The Chittagong Hill Tracts region comprises three districts: Bandarban, Khagrachuri and Rangamati. The region is surrounded by the Indian states of Tripura on the north and Mizoram on the east, Myanmar on the south and east.

Report from Compass Direct News