Cutting taxes for the wealthy is the worst possible response to this economic crisis

John Quiggin, The University of Queensland

Australia’s response to the health and economic impacts of the COVID-19 pandemic is rightly considered one of the world’s best. At their best, our federal and state politicians have put aside the sterile games dominating politics for decades.

It seemed possible these efforts might last, as politicians sought to find common ground and make real progress on issues such as climate change, industrial relations and inequality as part of the coronavirus recovery.

But as soon as the virus seemed to be receding, politics returned to the old “normal”. Policies are again being put forward on the basis of ideological reflexes rather than an analysis of the required response to our new situation.

There is no more striking example than the federal government’s reported plan to bring forward income tax cuts legislated for 2024-25. The idea apparently has backbench support.

Those cuts will benefit high-income earners the most. They include replacing the 32.5% marginal tax rate on incomes between A$45,000 and A$120,000, and the 37% rate on incomes between AA$180,000, with a single 30% rate up to A$200,000.

This is being proposed while the government begins to wind back income-support measures, such as free child care, with much more serious “cliffs” fast approaching.

This economic crisis is different

One of the most striking features of Australia’s initial response to COVID-19 was the speed at which the Morrison government abandoned a decade of rhetoric denouncing the Rudd Labor government’s response to the Global Financial Crisis.

In mid-March the government was floating the idea of a tightly limited response with a budget of A$5 billion. By the end of the month this had been abandoned in favour of the JobSeeker and JobKeeper schemes, estimated to cost A$14 billion and A$70 billion respectively. Other schemes brought the total to A$133 billion.

Despite the close resemblance to the Rudd stimulus packages, there was one crucial difference.

The GFC caused a collapse in the availability of credit, potentially choking off consumer demand and private investment. This was the classic case needing demand stimulus.

By contrast, the COVID-19 pandemic caused a shock to the production side of the economy, which flowed through to incomes. Millions of workers in industries such as tourism, hospitality and the arts were no longer able to work because of the virus.

The crucial problem was to support the incomes of those thrown out of work, and keep the businesses employing them afloat until some kind of normality returned. There were problems with the details of eligibility and implementation of the JobSeeker and JobKeeper programs, but the response was essentially right.

Have cash, will buy luxury car

The primary rationale for early tax cuts is that they will stimulate demand. But the economy’s real problem is not inadequate demand – particularly not on the part of high-income earners.

On the contrary, the problem for high-income earners is having a steady income even as many of the things they usually spend on (high-end restaurant meals, interstate and overseas holidays) have become unobtainable.

Among the results has been a splurge on luxury cars. Compared to June 2019, sales of Mazdas, Hyundais, Mitsubishis, Kias, Nissans and Hondas last month were all down. But Mercedes-Benz, BMW, Audi and Lexus were all up.

As Jason Murphy notes, this rush to buy fancy cars isn’t definitive proof the wealthy are looking to ways to spend all the money they’re saving. “But it is suggestive. Eventually the money has to go somewhere.”

The worst possible course of action

The continuing problem with the pandemic is the loss of income faced by millions of workers. By definition, anyone in a position to benefit from a high-end tax cut doesn’t have this problem. Equity would suggest that, far from receiving more income, they should be sharing more of the burden, if not now then in the recovery period.

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When the federal government legislated its tax-cut schedule in advance, critics including Reserve Bank governor Philip Lowe and Access Economics partner Chris Richardson pointed out the danger of promising future tax cuts based on projected growth. The same policy had failed ignominiously in the 1990s when the Keating government legislated tax cuts to be introduced after the 1993 election. After declaring the cuts “L-A-W”, Paul Keating was forced to withdraw half of the tax cuts when the budget deteriorated.

These criticisms have now been vindicated.

The decade of strong economic growth, starting this year, that was supposed to make big tax cuts affordable has disappeared. We will be lucky if per capita GDP is back to its 2019 levels by 2024-25, when the tax cuts are slated to kick in regardless of circumstances.

Once that happens, we will need all the tax revenue we can get to bring the budget back into balance and deal with the continuing expenditure needs the pandemic has created.

The government now seems to be headed for the worst possible course of action – cutting support for those hit hardest by the pandemic while pouring money into the bank accounts of the well-off.

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Forget JobSeeker. In our post-COVID economy, Australia needs a ‘liveable income guarantee’ instead

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The inevitable result of such a policy will be a surge of personal and business bankruptcies, mortgage defaults and evictions. That will bring about the kind of demand-deficiency recession the tax cuts are supposed to prevent, superimposed on the continuing constraints created by the pandemic.

So far we have all been in this together. For high-income earners that means forgoing tax cuts promised in happier times and contributing more to the relief of those who need it most.

John Quiggin, Professor, School of Economics, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The budget super change that helps the wealthy at the expense of the young

If your’re wealthy you’ll be able to put more money into super without even working.
Shutterstock

Brendan Coates, Grattan Institute

Another federal budget, and yet more tinkering to superannuation tax breaks. But the latest changes will only help older wealthier Australians. The losers are younger workers and taxpayers.

What’s the plan?

From July 1 2020, Australians aged 65 and 66 will be able to make voluntary pre- and post-tax superannuation contributions without having to pass the Work Test, under which they are required to work a minimum of 40 hours over a 30-day period.

About 55,000 Australians aged 65 and 66 will benefit from these changes at a cost of A$75 million over the next four years.

It’s another boost for tax planning

Treasurer Josh Frydenberg says the changes will help Australians save for their retirement.

But most 65- and 66-year-olds still working to top up their superannuation are already eligible to make voluntary super contributions, because they satisfy the Work Test. Working 40 hours over a 30-day period – or little more than one day each week – is hardly onerous.

For every dollar contributed to super that genuinely helps Australians save more for their retirement as a result of these changes, there will be many more dollars funnelled into super to make extra use of superannuation tax concessions.

The biggest winners will be wealthier retired 65- and 66-year-olds with other sources of income, such as from shares or property, which they will now be able to recycle through superannuation.

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They will be able to put up to $25,000 into super from their pre-tax income and then – because super withdrawals are tax-free – take the money back out immediately. Their contributions to super are taxed at only 15%, whereas ordinary dividends or bank interest is taxed at their marginal tax rate. The tax savings can be as high as $5,000 a year.

Such strategies aren’t costless: other taxpayers must pay more, or accept fewer services, to make up the difference.

It will mean larger inheritances

The government is also allowing 65- and 66-year-olds to make three years’ worth of post-tax super contributions, or up to $300,000, in a single year.

These changes will mainly boost inheritances.

Most people who make after-tax contributions already have large super balances and typically contribute from existing pools of savings to minimise their tax.

Grattan Institute’s 2016 report, A Better Super System, found that only about 1% of taxpayers have total super account balances of more than $1 million, yet this tiny cohort makes almost one-third of all post-tax contributions.

These changes will turbo-charge so-called “recontribution strategies” that minimise the tax paid on superannuation fund balances passed on as inheritances. When inherited, super fund balances originally funded by pre-tax contributions can be taxed at 17% (including the Medicare levy), depending on the age of the deceased and the beneficiary.

To avoid this tax on their estate, individuals can withdraw superannuation funds tax-free and contribute them back as a post-tax contribution, up to the annual post-tax contributions cap of $100,000 each year.

It fails the government’s own test

In 2016, the government tried – but failed – to define the purpose of superannuation as providing “income in retirement to supplement or substitute the Age Pension”.

The proposed objective rightly implied that super should not aim to provide limitless support for savings that increase retirement incomes.

The benefits of super changes should always be balanced against the costs of achieving them. The government’s latest changes fail that test.

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Read more:
Expect a budget that breaks the intergenerational bargain, like the one before it, and before that

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Brendan Coates, Fellow, Grattan Institute

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Who are the wealthy retirees targeted in Labor’s plans?

Roger Wilkins, University of Melbourne

In Labor’s budget reply speech, Bill Shorten reaffirmed the plan to remove refundability of dividend imputation credits. His pitch was to Australian voters on lower and middle incomes, in which he pledged to look after the country’s ageing population:

We know that giving older Australians the security and dignity they deserve matters more than an $80 billion corporate tax cut.

The issue of whether or not retirees should be able to get a refund in dividend imputation has sparked considerable discussion of retirees’ income and wealth.

The Household, Income and Labour Dynamics in Australia (HILDA) Survey shows that, overall, retired people tend to have lower incomes than the population as a whole, but higher wealth. This is because retirement typically involves ceasing employment and reducing income, while wealth tends to accumulate with age, at least up to the point of retirement, mainly due to paying off the mortgage and accumulating superannuation.

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The different mix of income and wealth for retired and non-retired households means it’s not straightforward to compare their economic well-being. For example, the HILDA Survey data show that only 23% of retirees aged 60 and over have above-median incomes (compared with 50% of the population as a whole); but 62% have above-median household wealth.

That said, retirees are generally wealthy if they have both above-median household income and above-median household wealth. With this definition, 20% of retirees aged 60 and over are wealthy. This compares with approximately 28% of the Australian population as a whole.

What does retirement wealth look like?

Among retirees aged 60 and over, wealthy retirees are on average about two years younger than other retirees, having an average age of 71.8. Nearly 97% of wealthy retirees own their home, compared with 76% of other retirees.

These retirees have net wealth in 2014 (when wealth was last measured by the HILDA survey) averaging over A$2.4 million at today’s prices.

While wealthy retirees have high average holdings of superannuation, investment property and other investments, the home is still the most important component of their wealth. The home is also the most important asset for other retirees, but in 2014 it was worth an average of only A$400,000 (at today’s prices) for these retirees, compared with A$800,000 for wealthy retirees.

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Wealthy retirees get most of their income from superannuation and other investments, although government benefits (mostly the Age Pension) nonetheless average over A$11,000 per wealthy retired household. For other retirees, the Age Pension is the dominant income source, averaging A$24,000 per household.

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The HILDA survey data indicates that both wealthy and other retirees on average pay little income tax – A$4,256 for wealthy retirees and only A$94 for other retirees. Indeed, less than 30% of wealthy retiree households, and only 5% of other retiree households, are estimated to actually pay any income tax.

Moreover, the data show that 42% of wealthy retirees, and 22% of other retirees, have negative income tax because of dividend imputation credits received on their holdings of Australian shares. This does not take into account taxes and imputation credits on dividends received by superannuation funds.

Given the tax-free status of superannuation in people’s “retirement phase” (albeit now only on the first A$1.6 million), it’s likely that more than 42% of wealthy retirees, and more than 22% of other retirees, effectively have negative income taxes.

Whether you consider Labor’s plan good or bad policy, given its exemption of pensioners, it is clear that its impact will be most acutely felt by wealthy retirees.

Roger Wilkins, Professorial Research Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, University of Melbourne

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

Muslim Mob Targets Christian, Family in Murder Case

Villagers beat young man and his relatives, as well as burn their crops and press charges.

SHEIKHUPURA, Pakistan, October 11 (CDN) — A young Christian has been jailed for nearly eight months and his family was attacked after a Muslim friend framed him for murder, he said.

Yassir Masih, 18, has been locked up at Sheikhupura District Jail since his arrest in late February. In an interview at Narang Mandi police station at that time, Masih said that on Feb. 17 his Muslim friend Muhammad Mubashir came to his house late at night and asked him to accompany him on “an urgent piece of work.”

Residents of Pandori village in Sheikhupura district, Mubashir and Masih went to the home of Muhammad Imran, who was in love with the same girl as Mubashir; Masih said the two one-time friends often quarreled over her, with bitter enmity eventually developing between them.

“Being a friend, I went with him, reluctantly, and we soon arrived at the door of Muhammad Imran,” Masih said. “Muhammad Mubashir knocked on the door, and as soon as Muhammad Imran opened the door, Muhammad Mubashir opened fire with his pistol, killing Muhammad Imran on the spot.”

The gunfire awakened villagers, who gathered and began to search for the killer, Masih said. Frightened of the mob and not wanting to put his family in danger, Masih did not return home but fled with Mubashir. The two young men hid in a field of crops, where they decided to leave the village until passions cooled, he said. As Masih left the village, however, he was unaware that Mubashir had melted into the mob that was looking for the killer, he said.

“Later Muhammad Mubashir went to his house and slept in his warm bed that shivering cold winter night,” Masih said.

The next day villagers discovered Masih was missing and therefore accused him of killing Imran, he said.

They didn’t stop at that, said Khalid Gill, chief organizer for Punjab Province of the All Pakistan Minorities Alliance. Gill said that in order to deprive the wealthy Christian family of their profitable strawberry, wheat, corn and other crops, Mubashir’s father, Muhammad Gulfam, filed murder, arms possession and terrorism charges not only against Masih but also against his 50-year-old father Abid Masih, as well as brothers Khalid Masih, 30; Asif Masih, 23; Ashir Masih, 15; Faisal Masih, 13; and two others unnamed.

“Most of the Muslims in the area harbored jealousy against the prosperous Christian family,” Gill pointed out, explaining why Gulfam also pressed charges against members of Yassir Masih’s family.

Additionally, the angry villagers on Feb. 18 overran the property of Masih’s grandfather, Rehmat Masih, where four of the late patriarch’s sons lived; the mob beat women and children with clubs and looted appliances, clothes and other household items, Gill said.

“Nothing was left of use for the Christian family,” Gill said.

He added that the villagers ransacked Yassir Masih’s home and burned 20 acres of his fields on Feb. 18. The village comprises about 2,000 Muslim families and only 15 Christian homes, he said.

Officers from Narang Mandi police station arrested Yassir Masih later than month. He and his family members told officers that Mubashir shot Imran, but police listened only to the lies of the plaintiff, Masih said.

On Feb. 19 Yassir Masih’s mother, Shamshad Bibi, went to the Narang Mandi police station to file a complaint against the Muslim villagers for attacking and looting their house and burning their crops, Gill said. Police filed a case against the attackers but so far no one has been arrested, and “all the Muslim leaders who instigated the Muslim mob to attack are still at large,” Gill said.

At the same time, Narang Mandi police have arrested not only Yassir Masih but his brothers Ashir Masih and Asif Masih, 15 and 23 years old respectively, Gill said. While Yassir Masih has been incarcerated at Sheikhupura District Jail, Ashir Masih and Asif Masih were interrogated by Criminal Investigation Agency officers and have been kept at an undisclosed location since Feb. 18.

The accused Christian’s father, Abid Masih, as well as Khalid Masih, were still in hiding at press time. Police exonerated young Faisal Masih of all charges on Sept.1. Gill said that the 13-year-old boy had moved to an undisclosed location.

Report from Compass Direct News

Allegedly Raped Girl, Family in Pakistan Forced to Flee Town

Death threats, ultimatum from powerful Muslims compel father of 12-year-old to move.

GUJRANWALA, Pakistan, May 25 (CDN) — A Christian who accused a Muslim of raping his 12-year-old daughter has fled his town in Punjab Province with his family following death threats and police pressure to drop the case.

Citing “continuous threats” to take his life, Zafar Masih left Gujranwala’s predominantly Muslim town of Nai Abadi Tatlay Aali within 10 days of accusing Ali Ahmed, a 28-year-old businessman, of beating and raping his daughter on May 12.

His daughter, whose name was withheld, told Compass that her employer, Ahmed, beat and raped her when she went to his home, where she worked as a house servant. When she arrived she was surprised to find him at home in his room, she said.

“He grabbed my hair and asked me to sleep with him,” she said, amid tears. “I refused to let him have sexual relations with me, which enraged him.” 

Her body marred with bruises, she said he tore her clothes and she screamed, but no one else was in the home to hear her.

“Ali Ahmed overpowered me, and all my efforts were futile even though I strained with all my energy to stop him,” she said. “After getting stigmatized, I was threatened with dire consequences and the slaying of my whole family if I told about the rape.”

The oldest of four children, she fled the house and immediately sent her younger brother to call her father, who was working in a nearby field, she said.

Masih, her father, said he immediately went to Tatlay Aali police station and submitted an application to file a First Information Report against Ahmed. Station House Officer Inspector Iqbal Ojjhra refused, he said, and began to pressure him to withdraw the application.

A powerful local politician along with the area’s largest land owner, Imtiyaz Kharral, have since threatened to maim or kill him, Masih said.

“I declined to withdraw my application, though I was being immensely pressured by both the leading Muslim men,” Masih said. “And Inspector Ojjhra had a new alibi every day for not registering the case.”

Inspector Ojjhra denied all allegations against him. He told Compass that he declined to register a rape case because he did not want to harm the Christian girl’s dignity, so instead he had recommended trying to resolve the conflict in a public gathering or “punchayat.”

Arif Masih, a Nai Abadi Tatlay Aali representative for local Christians, told Compass that the next evening, May 13, Kharral called a meeting at his farmhouse with Inspector Ojjhra, local Muslims and a contingent of police officers. Also summoned were Zafar Masih and his children, Arif Masih and the other Christian families of the town.

“At Imtiyaz Kharral’s farmhouse gathering, none of the Christians were allowed to speak or express their opinion,” said Arif Masih, who said the wealthy land owner considered himself the head of the town. “Even I being representative of the Christians was not allowed to speak for [Zafar Masih’s daughter] or put forward the demands of the Christians.”

Only Kharral spoke, saying that there were only two options – Zafar Masih could withdraw his rape charge, or he and the other Christian families in Nai Abadi Tatlay Aali could relocate elsewhere.

“He ignored the fact that the girl would have to live her whole life with this irrecoverable loss and stigma,” Arif Masih said. “I was totally helpless in this showdown, because Imtiyaz Kharral and Ali Ahmed have the favor of the local police head, Iqbal Ojjhra.”

Khalid Gill, chairman of the Christian Lawyers Foundation (CLF), condemned the dismissive police attitude toward marginalized Christians. He suggested that the chief justice of the Lahore High Court take suo moto action against the suspect, his associates and police officers as responsible for mental anguish of the area Christians.

Tahir Naveed Chaudhary, a Christian member of Punjab’s legislative assembly, also denounced the alleged rape and pledged to extend legal and financial support to the family of Zafar Masih. 

Most of the area Christians are construction laborers, sanitation workers and domestic servants working for daily wages. Zafar Masih said he could not afford to educate his children because he was living close to poverty level.

“My eldest daughter worked as a maidservant for a monthly salary of 500 rupees [less than US$6] to lend a hand,” he said. “We Christians in Pakistan have no life even dogs live better life than us.”

Report from Compass Direct News 

Al Shabaab Militants Execute Christian Leader in Somalia

Islamic extremists run into 57-year-old Yusuf Ali Nur after battle with rival group.

NAIROBI, Kenya, May 5 (CDN) — Islamic militants yesterday killed another leader of the underground church movement in Somalia, sources said.

Before he was fatally shot on Tuesday (May 4) in Xarardheere, about 60 kilometers (37 miles) from Jowhar, 57-year-old Yusuf Ali Nur had been on a list of people the Islamic extremist al Shabaab suspected of being Christian, sources who spoke on condition of anonymity told Compass. Al Shabaab, said to have links with al Qaeda, has vowed to rid Somalia of Christianity.

The militants fighting the Transitional Federal Government (TFG) in Mogadishu had been engaged in a two-hour battle with a rival rebel group, the Ahlu Sunna Waljamer, which had taken control of the Xarardheere area, before they came across Nur. Nur had lived in Xarardheere since leaving Jowhar in July 2009.

Eyewitnesses said that after al Shabaab took control of the area, they went from house to house looking for enemy fighters when they arrived at Nur’s rented home at about 10:30 a.m. Sources said that upon finding Nur, one of the militants remarked, “Oh! This is Yusuf, whom we have been looking for,” before they sprayed him with bullets at close range.

Nur is survived by his wife, whose name was withheld for security reasons, and three children, ages 11, 9 and 7.

This latest death comes after several execution-style murders of Somalis suspected of being members of a suppressed yet resilient underground faith movement in Somalia. A number of Christians have been beheaded by the radical Islamists out to topple the fledgling TFG and introduce a strict version of sharia (Islamic law).

Al Shabaab, which controls large parts of central Somalia, recently banned radio stations from playing music and outlawed bell ringing that signals the end of school classes “because they sound like church bells.”

Nur, who had worked on a farm while in Jowhar, had long being monitored by al Shabaab, the sources said. After settling in Xarardheere, he became the head teacher of Ganane Primary School and also taught English. The al Shabaab militants object to the use of English, preferring Arabic, and even after relocating to Xarardheere Nur realized he was in danger of the militants finding him, sources said.

Ganane is a private school owned by wealthy Somali proprietors.

In 2009 Islamic militants in Somalia sought out and killed at least 15 Christians, including women and children. This year, on Jan. 1 al Shabaab members murdered 41-year-old Mohammed Ahmed Ali after the Christian had left his home in Hodan, on the outskirts of Mogadishu.

On March 15, al Shabaab rebels shot Madobe Abdi to death on March 15 at 9:30 a.m. in Mahaday village, 50 kilometers (31 miles) north of Jowhar. Abdi’s death was distinctive in that he was not a convert from Islam. An orphan, Abdi was raised as a Christian.

Advocacy group International Christian Concern has reported that three members of al Shabaab killed Somali Christian Mu’awiye Hilowle Ali in front of his home in Afgoye on March 23, executing him with close-range shots to his head and chest.

The transitional government in Mogadishu fighting to retain control of the country treats Christians little better than the al Shabaab extremists 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 

Pakistani Muslims Accused of Rape Allegedly Attack Sisters

Fearing conviction, five suspects said to beat 15- and 21-year-old into dropping charges.

LAHORE, Pakistan, March 18 (CDN) — Five Muslims allegedly ransacked the house of an impoverished Christian in this capital city of Punjab Province last month and angrily beat his daughters in an effort to get the family to withdraw rape charges.

Muhammad Sajjid wielding a pistol, Muhammad Sharif brandishing a dagger and Muhammad Wajjad and two unidentified accomplices carrying bamboo clubs arrived at the Lahore home of Piyara Masih the afternoon of Feb. 26, Christian leaders said. The Muslims allegedly ransacked the house and began thrashing his two daughters, a 15-year-old and her 21-year-old sister, Muniran Bibi, according to attorney Azra Shujaat, head of Global Evangelical Ministries, and Khalid Gill, president of the Christian Liberation Front (CLF).

Muniran said Sharif stabbed her four times with the dagger.

“They ripped apart my clothes, as well as my sister’s,” she said. “In the meantime, Muhammad Sajjid kept firing into the air to terrorize us.”  

The family accuses the men of raping her then-13-year-old sister in 2008. Their frail father said that the gang leader, Sajjid, commanded his accomplices to abduct both Muniran and her sister in the most recent attack, without success. A neighbor who requested anonymity said that a large number of people gathered in front of the house upon hearing the cries of the Christian family, causing the five Muslims to flee.

The alleged attacks on the family were predicated in part on the assumption that, as Christians, they will get little help from a justice system biased against non-Muslims and easily swayed by threats, bribes or other means of persuasion from Muslims, Christian leaders said. When the family approached Nishtar Colony police for help, officers refused to register a case.

Attorney Shujaat said that in refusing to file assault charges, police bowed to the power of wealthy area Muslims. Shujaat, who is providing pro-bono counsel for the family, said he registered a First Information Report (FIR) at the Lahore High Court, accusing the men of ransacking the house and illegal weapons. Only after the high court order for police to file an FIR and strenuous efforts by him, Christian politicians and clergymen did the Nishtar Colony police register one against the Muslim gang.

Police did not register the FIR until March 2, he said, on orders of Additional Sessions Judge Justice Mahr Muhammad Yousaf.

The Christian family said they were still receiving death threats.

Gill, who besides being president of CLF is head of the All Pakistan Minorities Alliance, said the alleged rape took place on Easter Sunday, April 8, 2007, when Sajjid, Sharif, Wajjad and an unknown accomplice attacked the family.

“The chastity of [name withheld], who was 13 years old then and youngest among her sisters, was ruined by all four Muslim gang members, and later they abducted her and kept her at an undisclosed locality,” Gill said.

Police later recovered her, and a medical examination proved that she had been repeatedly sexually abused, Gill added.

Shujaat said the four men were being prosecuted for rape and abduction of the girl in District and Sessions Court. Sources told Compass that the alleged rapists were granted bail and secured liberty soon after their apprehension.

Shujaat said evidence at their trial showed they were responsible for the rape, and that a conviction was imminent.

Ferhan Mazher, head of Christian rights group Rays of Development Organization, said the only way for the “perverse Muslim criminals” to do away with the court’s judgment was to convince the Christian family, through threats and violence, to drop the charges.

“Therefore the Muslim men invaded the house of the Christian family to exert intense pressure on them to quash the case,” Mazher said.

Report from Compass Direct News 

Pakistani police tortured pregnant Christian woman

International Christian Concern (ICC) has learned that a pregnant Christian woman miscarried on July 26 after police beat her and dragged her naked through their police station in the Gujrat District of Punjab, Pakistan. Police had arrested her and a Muslim woman after their employer accused them of theft, but police did not even touch the Muslim woman, reports Dan Wooding, founder of ASSIST Ministries.

An ICC spokesperson said that the woman, Farzana Bibi, worked as a maid in the house of a wealthy Muslim. During a wedding held at the house, some jewelry was stolen from some of the landlord’s female relatives. The police were called, and when they arrived at the scene they arrested two maids: Farzana and a Muslim woman named Rehana.

Nazir Masih, Farzana’s husband, said, “Police registered a fake theft case against my wife and Rehana without any proof.”

Nazir went on to say that the police tortured his wife even though she told them she was pregnant. He told ICC, “Sub-Inspector Zulfiqar and Assistant Sub-Inspector Akhter subjected her to intense torture. They stripped off her clothes and dragged her naked around the compound of Cantonment Area Police Station in Kharian. They humiliated and tortured my wife, but did not do anything to Rehana.”

The ICC spokesperson said, “Although Farzana complained of severe pain, the police ignored her pleas and detained her for another two days. When her condition became critical, the police finally transferred her to the Tehsil Headquarters Hospital in Kharian, where she miscarried.

“Nazir filed a report with the District Police Officer in Gujrat, detailing the abuse his wife received and her miscarriage. The District Office initiated an investigation after receiving the report, withdrawing the false accusations and suspending officers Zulfiqar and Akhter.

“The authorities have pledged to punish all those responsible. Please pray that God would comfort Farzana and Nazir and that justice would be carried out. Please also call your Pakistani embassy and ask them to defend the rights of Christians.”

Jeremy Sewall, ICC’s Advocacy Director, said, “While we were not able to confirm whether Farzana was innocent of robbing her employers, it is absolutely unacceptable for police to humiliate her and abuse her so severely that she lost her child. The fact that the Muslim woman accused of the same thing was at least treated like a human being just proves again that if you are not a Muslim in Pakistan, you have no rights. The government should go beyond suspending the two officers guilty of this crime and try them for manslaughter.”

Report from the Christian Telegraph 

EGYPT: VIOLENCE AGAIN ERUPTS OVER QUEST FOR WORSHIP SITE

Two Copts wounded in Minya province over plan to use building as church venue.

ISTANBUL July 31 (Compass Direct News) – The recent eruption of sectarian violence in Egypt’s Minya province continued last week as local Christians again faced harsh reprisals from Muslims for trying to convert a building into a worship facility.

On July 24 security forces in the village of Hawasliya were able to prevent a crowd of Muslims, which numbered in the hundreds according to some reports, from torching the building. But the mob succeeded in setting fire to four neighboring stables, killing sheep and cows belonging to Copts.

During the melee two Copts, including an elderly woman, were wounded. Both received hospital treatment.

“When Muslims see that Christians are making a church, they get upset about it,” said Teresa Kamal, a local journalist. “Why are people full of hate like this? Something has happened to radicalize the people.”

Pastor Milad Shehata, 39, heads up the project to convert the four-story property into a church building. He told Compass that the village’s Protestant Christians had no other place to worship.

“I have no intention of leaving this place at any price,” said Shehata. “This place has been built from the sweat and hard-earned money of very poor people. Even if I or my family is killed, it doesn’t matter. I will not leave this place.”

Shehata had begun to refurbish the building to accommodate church meetings and was planning to apply for permission to use it as a place of worship before holding services on the premises.

On July 23, officers investigating complaints from Muslim villagers about two crosses Shehata had installed on the outside of the building took him to the local police station. After questioning, they released him with orders to return the next morning. At that time two policemen escorted him to the main prison in Minya, where he was held without charge until Saturday afternoon (July 25).

“I don’t know why I was arrested,” said Shehata. “I was there for 37 hours, but no one even gave me even a cup of water.”

Since the attack on July 24, elders from the Muslim community have extended the offer of a reconciliation meeting on condition the church is never opened.

“There is no point in holding a reconciliation meeting if we have to close the church,” said Shehata. “The church is the whole point.”

Recent Troubles

There have long been drafts of a unified law for the building of places of worship in Egypt aimed at resolving recurrent conflicts faced by new churches. Such legislation, however, has been consistently passed over in parliamentary sessions.

Human rights lawyer Naguib Gobraiel said there was a stark contrast between the freedom to practice religion given to Muslims and that afforded to Christians.

“Muslims can put a mat down anywhere and pray and no one objects,” he said, pointing out the contrast with Christians’ inability to secure worship sites. “Why do they differentiate? It implies that we can’t have private prayers.”

The July 24 incident marks the fourth time in as many weeks that planned new church buildings have sparked violent responses from inhabitants of villages surrounding the city of Minya.

Despite the recent high incidents of sectarian strife, Minya Gov. Ahmad Dia’a El-Din told Compass that inter-faith relations are not as strained as they may seem.

“These kinds of attacks are not as frequent as some people imagine,” he said. “They are not happening night and day. The proof is the businesses – you find many shops owned by Copts. People live together and Copts are wealthy, they are doing fine business.”

El-Din seemed eager to demonstrate that he led by example.

“I personally work closely with Christian people and have good relationships with them,” he said. “I harbor no personal animosity.”

Gobraiel, however, was not impressed.

“The governorate of Minya has the highest level of radicalization and intolerance,” he said. “The governor has totally failed in tackling this issue from all different aspects – education, media, culture and security.”

Report from Compass Direct News 

PAKISTAN: SUSPECTS IN RAPE OF CHRISTIAN GIRL CLEARED

Police in Muslim-majority nation suspected of corruption.

ISTANBUL, April 10 (Compass Direct News) – Police have declared three Pakistani men innocent of raping a 13-year-old Christian girl despite eye witness accounts and medical evidence indicating their guilt.

At a hearing in Nankana Sahib district court on April 3, police from the Pakistani town of Sangla Hill, 64 miles from Lahore, cleared 40-year-old Mohammed Shahbaz, 30-year-old Waqas Sadiq and 25-year-old Yousaf Sadiq of accusations of raping and threatening Ambreen Masih.

Shahbaz was the only suspect to attend the hearing, which was initially called to discuss terms of his pre-arrest bail. But Judge Ijaz Hussan Awan said he couldn’t set terms for bail if police didn’t want to arrest or detain him.

“In Pakistan it has always been like this – the wealthy person can approach the police and change the course of an investigation,” said prosecuting attorney Akbar Durrani. “Regarding Christians, they cannot put any pressure on the police for a fair investigation.”

Ambreen and her family accuse Waqas Sadiq and Yousaf Sadiq of kidnapping her and taking her to their family residence. The Masihs accuse the two men and Shahbaz of repeatedly raping her, releasing her after two hours and threatening to kill her if she informed authorities.

The three men, along with a relative, 25-year-old Zahid Riyasat, allegedly kidnapped her a second time on Feb. 5. When her parents started to worry about her absence, her father, Munir Masih, organized a search party with other local Christians. They found the three suspects at the house of the Sadiqs’ father, raping her at gunpoint, according to a First Instance Report (FIR).

As the search party approached the four suspects, the accused fired warning shots into the air and then ran away, Munir Masih said in the report.

Ambreen then returned home with her family. She said that when the captors originally abducted her, they said, “We will kill your parents if you tell them this.”

On Feb. 6 Masih obtained permission from the judicial magistrate of Sangla Hill for an official medical examination of Ambreen, which established that she had been raped. Her parents sought police to file charges against the three men, but officers responded only after CLAAS prompted them to open a case.

After police declared the three men innocent following their investigation, lawyers representing Masih accused family members of the suspects of bribing police.

“In that village, Christians are nothing for the Muslims, they make them work for them and sometimes make them work without paying them,” said CLAAS field worker Katherine Sapna.

The three accused men are part of a wealthy family of land owners in Sangla Hill. Ambreen comes from a poor background and has seven siblings. Her father works as a day laborer, and Ambreen and two of her sisters work as domestic servants.

Attorney Durrani has appealed to the Lahore High Court to put different police officers on the investigation. Although local police declared the three suspects innocent at the April 3 hearing, they did not deny that Ambreen had been raped. But the police did not suggest any other suspects, Durrani told Compass.

Around 60 Christian families live in Sangla Hill, located near the industrial city of Sheikupura, northwest of Lahore.

 

Murdered Christian

Police reluctance to prosecute crimes against Christians in Pakistan also has hampered Samson Joseph, attorney for the family of Adeel Masih, a 19-year-old Pakistani Christian believed to be the victim of an “honor killing” by two Muslims.

On April 1 the Sessions Court in Gujranwala held a hearing in which police declared the suspects innocent.

Masih was found dead in May 2008 in Hafizabad. Police originally declared his death a suicide, but his family and human rights lawyers believe relatives of a 19-year-old Muslim woman, Kiran Irfan, with whom Masih had a one-year relationship, tortured and killed him.

District police arrested her father, Mohammed Irfan, and her uncle, Muhammad Riasat, in July 2008 – two months after Masih’s family went to Gujranwala police, who initially declined to charge Irfan’s family with any crimes and effectively declared them innocent. A high inspector has reopened the case and taken the two suspects into custody.

Sapna of CLAAS said the case has taken its toll on the family of Adeel Masih, whose father is suffering psychological problems from the apparent murder.

Marriage between Christian men and Muslim women is forbidden according to a strict interpretation of sharia (Islamic law), and even social contacts such as these can incite violent reactions in Pakistan, a majority-Muslim nation of 170 million.

Report from Compass Direct News