Police raid Perth Glory owner's businesses

SEVERAL companies associated with Perth Glory owner and businessman Tony Sage have been raided by federal police.

It is understood the Australian Federal Police (AFP) spent several hours in the soccer club's Leederville building as well as at the office of mining company Cape Lambert Resources, which Mr Sage chairs.

An AFP spokeswoman said she could not comment on an ongoing investigation but did confirm several commercial and residential premises were raided in Perth and Sydney on Wednesday.

"The AFP can confirm that today a number of search warrants were executed on commercial and residential premises in Perth and Sydney," she said in an emailed statement.

The searches were part of an ongoing AFP investigation in partnership with commonwealth agencies including the Australian Crime Commission, Australian Tax Office, and Australian Securities and Investments Commission, she said.

"The investigation is ongoing, therefore it is not appropriate to make any further comment at this point in time," she said.

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French judges keep Strauss-Kahn charges

French judges have decided not to drop aggravated pimping charges against Dominique Strauss-Kahn. Source: AAP

FRENCH judges have decided not to drop aggravated pimping charges against Dominique Strauss-Kahn.

His lawyer says the former International Monetary Fund chief will appeal.

Strauss-Kahn's lawyers have argued the investigating judges in the case are biased.

The case revolves around a suspected luxury prostitution ring in northern France.

A court in the French city of Douai decided on Wednesday to retain the preliminary charges.

Strauss-Kahn's lawyers have said he attended "libertine" gatherings but didn't know some women present were paid.

The case is one part of an intercontinental legal saga that exposed Strauss-Kahn's active sex life and buried his French presidential ambitions.

Strauss-Kahn reached a settlement in the US last week with a hotel maid who accused of him of trying to rape her in May 2011.

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Report released on Qantas engine problem

AN Australian Transport Safety Bureau investigation has concluded a separated turbine blade led to an engine malfunction on an international Qantas flight last year.

A Qantas Boeing 747-400 aircraft, was en route from Sydney to Singapore on May 9, 2011 when - while climbing from 36,000ft to 38,000ft - the crew noticed abnormalities from the aeroplane's No.4 engine, the Australian Transport Safety Bureau (ATSB) said on Wednesday.

"The indications included an increase in both the exhaust gas temperature and vibration levels," ATSB said in a statement.

"The flight crew reduced the engines thrust, however, the vibration continued near maximum levels and the engine was subsequently shut down."

The plane continued to Singapore for a safe landing and disembarkation of the passengers and crew.

Following an investigation into the incident, ATSB said on Wednesday the jump in the exhaust gas temperature and vibration from the engine was "a direct result of the failure and separation of a single intermediate-pressure turbine blade", which fractured.

In its safety message, the bureau said operators and maintainers of Rolls-Royce RB211-524 engines should be aware of the "potential for wear and degradation of the intermediate-pressure turbine blade interlocking shrouds".

But it said the probability of an intermediate-pressure turbine blade failure is extremely low, with only three reported occurrences across the RB211-524 engine operating history.

"While blade separation will likely cause malfunctions necessitating an in-flight engine shut down, the associated risks to the safety of continued flight are minor."

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Man in Saudi Arabia executed for murder

A SUDANESE man convicted of murder has been beheaded by the sword in the western city of Mecca, the Saudi interior ministry says.

Othman Mohammed was found guilty of killing another Sudanese man, Salah Ahmed, by repeatedly beating him on his head following a dispute between the two, the ministry said in a statement published by state news agency SPA.

Mohammed's beheading raises to 76 the number of people executed so far this year in the ultra-conservative Muslim kingdom, where 79 were put to death in 2011, according to Amnesty International.

Rape, murder, apostasy, armed robbery and drug trafficking are all punishable by death under its strict version of sharia, or Islamic law.

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Aust to help Fiji in wake of Cyclone Evan

The federal government is giving Fiji immediate humanitarian assistance in the wake of Cyclone Evan. Source: AAP

AUSTRALIA will give Fiji and Samoa an initial $1 million worth of emergency assistance each to help recover from Cyclone Evan.

The cyclone has left a swathe of destruction after battering Fiji for more than 12 hours, destroying homes, flooding rivers and stranding thousands of tourists.

Western parts of main island Viti Levu bore the brunt of the cyclone's fury but there are no reports of deaths. About 8500 locals sheltered from the cyclone in evacuation centres.

The head of AusAID in Fiji, John Davidson, says Australia is giving Fiji 1000-plus family care packages as a first step.

"We will continue to monitor the situation very closely," he told AAP from Suva on Tuesday.

"The response we've provided so far is very much an immediate response to help the people of Fiji.

"I would expect it would be a much larger response once we're able to ascertain the full extent of the damage."

Foreign Minister Bob Carr said the government was sending two disaster relief experts to assess the damage, and an extra foreign affairs official to give consular help to Australians.

"The Australian Civilian Corps is also on standby for early deployment," he said in a statement.

Mr Davidson said further assistance could include water purification, hydration, soap, tents and school infrastructure.

AusAID may also provide vaccinations and mosquito nets to prevent typhoid and dengue fever outbreaks, Mr Davidson said.

Evan killed five people when it pummelled Samoa late last week. The Australian High Commission in the capital Apia reopened on Tuesday after closing due to storm damage.

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Aust stocks closes at 16 month high

THE Australian market finished on a 16-month closing high as US politicians appeared to make progress on their budget negotiations .

At close on Tuesday, the benchmark S&P/ASX200 index was up 21.8 points, or 0.48 per cent, at 4,595.2 points, while the broader All Ordinaries index had risen 22.5 points, or 0.49 per cent, to 4,610.5 points.

On the ASX 24, the December share price index futures contract was 29 points higher at 4,602 points, with 167,860 contracts traded.

Australian Stock Report head of research Geoff Saffer said the Australian market had its highest close since late July 2011 after US politicians appeared to be making progress on their "fiscal cliff" negotiations.

Just two weeks remain before tax increases and government spending cuts, referred to as the fiscal cliff, start taking effect in the US if no deal is reached.

"I think it was mainly widespread buying today on hopes that US politicians will reach a compromise before the end of the year," he said.

Mr Saffer said the Reserve Bank of Australia's minutes of its December board meeting also suggested that the cash rate could be cut further in 2013 which prompted investor buying.

The Australian market recorded gains across the board with mining, utilities and healthcare the best performing sectors.

BHP Billiton jumped 31 cents to $36.66, Rio Tinto soared $1.18 to $64.70 and Fortescue gained 13 cents to $4.60.

The four major banks all finished in positive territory.

ANZ was up two cents to $24.51, National Australia Bank gained 12 cents to $24.60, Westpac added six cents to $25.81 and Commonwealth Bank jumped 16 cents to $61.45.

The spot price of Sydney gold closed at $US1,702.59, up $US10.84 from Monday's close of $US1,691.75.

Market turnover was 1.77 billion securities worth $4.99 billion, with 536 stocks up, 434 down and 352 unchanged.

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Aust bonds lower after RBA minutes

AUSTRALIAN bond futures prices were lower after the release of the minutes from the Reserve Bank of Australia's latest board meeting reduced traders' expectations of future interest rate cuts.

RBC Capital Markets fixed income strategist Su-Lin Ong said local bond futures prices fell following the release of the RBA's minutes at 1130 AEDT.

"The minutes from the December meeting suggested it was quite a close decision and I guess the interpretation is that with the cash rate down to three per cent the hurdle to cut further may be quite high," she said.

"So that weighed quite high on fixed income markets."

The RBA cut the cash rate to three per cent in December, from 3.25 per cent previously.

Ms Ong said developments in negotiations on the 'fiscal cliff' of tax hikes and spending cuts due to apply in 2013, unless US political leaders can agree to alternative measures, was likely to drive bond markets over the coming days.

"I think most attention is on these fiscal cliff negotiations, we have had some progress since the weekend and I think there is an expectation that we are inching closer to both a compromise and agreement," Ms Ong said.

US President Barack Obama has offered a proposal to House of Representatives Speaker John Boehner which would raise revenue by $US1.2 trillion ($A1.14 trillion), and cut spending by the same amount.

At 1630 AEDT on Tuesday, the March 10-year bond futures contract was at 96.640 (implying a yield of 3.360 per cent), down from 96.670 (3.330 per cent) on Monday.

The March three-year bond futures contract was trading at 97.220 (2.780 per cent), down from 97.235 (2.765 per cent).

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Man faces 10 years jail over flight abuse

AN international flight was diverted after a drunken Perth man allegedly tried to smoke a cigarette on the plane before punching and spitting on crew members.

The 34-year-old man was taken off the flight, enroute from Sydney to Japan on Monday night, when it was diverted to Cairns.

Australian Federal Police (AFP) allege the man was heavily intoxicated and was abusive towards the crew and other passengers.

He had to be forcibly restrained by the crew and was arrested when the plane landed in Cairns, police said.

Assistant commissioner Shane Connelly said the public needed to remember that when they travelled on an aircraft their behaviour was subject to Australian laws.

"Enough is enough. An aircraft captain and co-pilot can ill-afford to be distracted from their duties of safely flying an aircraft by having to deal with drunk, violent or disorderly passengers," he said.

"The cabin crew are there to make your flight safe and enjoyable.

"They should not have to restrain violent passengers, be abused or assaulted, or be interfered with in conducting their duties."

AFP responded to more than 1000 alcohol-related incidents at Australia's 10 major airports during the 2011-12 financial year.

Out of those incidents, 145 were for offences related to offensive and disorderly behaviour and excessive alcohol consumption.

AFP said the plane was forced to dump its fuel load when it diverted to Cairns and the airline would seek to recover significant costs.

The man was due to face Cairns Magistrate Court on Tuesday charged with smoking in an aircraft, disorderly and offensive behaviour on board an aircraft, and interfering with crew or aircraft.

The offences carry a maximum penalty of two years imprisonment.

He will also be charged with assaulting crew general, which carries a maximum penalty of 10 years imprisonment.

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Evan batters Fiji as Samoa counts the cost

CYCLONE Evan has battered the South Pacific island state of Fiji with 200km/h winds, cutting power and water supplies in the northern region.

Thousands of people took refuge in evacuation centres and airlines suspended flights in and out of the country on Monday.

The military government warned that Evan could be the most destructive cyclone since 1993 to hit the island, one of the Pacific's biggest tourist centres.

Fiji government spokeswoman Sharon Smith-Johns says the cyclone was moving towards Nadi and had intensified a little, with winds of up to 200km/h.

Ms Smith-Johns said 3500 people are sheltering in evacuation centres after people had earlier been warned to prepare for the worst.

She said the lack of early casualties was encouraging but people could not become complacent.

"We've had a week to prepare for this, so we're as prepared as you can be," she told Radio New Zealand on Monday.

"The extent of the damage, I don't think we're going to know until tomorrow morning when we wake up and see how badly it has hit."

Fiji's second-biggest city Lautoka, near the closed international airport at Nadi, was severely battered by the cyclone, with resident Janet Mason telling RNZ that an empty house had "flown through the air" and landed beside hers.

The bulk carrier ship Starford, believed to be carrying equipment for a Chinese firm constructing a highway, dragged its anchor and was pushed on to the reef in Suva Harbour, the Fiji Times reported.

Meanwhile, New Zealand searchers looking for 10 fishermen missing off Samoa since the cyclone hit the island nation believe they have found one of four missing boats.

The upturned fishing boat hull is being towed to Apia by a Samoan police launch after being found by a New Zealand Air Force Orion searching for the fishermen.

Four people have already died and more casualties are feared, as damage to the Samoan island of Upolu appeared to be worse than from a 2009 earthquake and tsunami that killed 135 people, according to aerial surveillance, a spokeswoman for the prime minister told RNZ.

New Zealand Red Cross has deployed a specialist team and an emergency grant of $NZ10,000 ($A8,098) to help deal with the damage.

Air NZ is allowing all passengers flying from Auckland to Apia between December 17 and December 30 to take one extra piece of checked luggage, up to 23kg, free of charge.

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Cash must be part of abuse compo: inquiry

VICTIMS of institutional abuse must be financially compensated as part of a broader acknowledgment of wrongdoing, a parliamentary inquiry has heard.

A partner at a law firm that has handled more than one thousand child sex abuse claims said victims' desire for justice outweighs their desire for financial compensation but money is vital because victims' experiences "cost them a great deal".

"The money is important because the money is a tangible acknowledgment of wrongdoing," Angela Sdrinis of Ryan Carlisle Thomas Lawyers told the Victorian child abuse inquiry on Monday.

"For victims to feel some sense of justice, what they get has to cost a wrongdoer."

Ms Sdrinis says there needs to be an apology, and payment should be part of that as a gesture that the institution recognises the victim has suffered at its hands.

The theme of financial compensation ran through three submissions heard on Monday by Victoria's parliamentary inquiry into religious and non-government organisations' handling of sex abuse against children.

In its address to the inquiry, the Law Institute of Victoria (LIV) called for compensation to be paid through a fund similar to the James Hardie asbestos injuries compensation fund.

Religious organisations would be required to contribute to it, LIV said.

LIV president Michael Holcroft said this would remove some of the uncertainty victims' faced when making a compensation claim.

He said anyone attempting to bring an action against the Catholic Church risked the church relying on the defence it did not employ the members of the clergy.

"They do not have assets, the assets are held in independent property trusts," Mr Holcroft said.

"Hence any compensation arrangements or settlement arrangements will be prejudiced in light of that."

Advocacy group Care Leavers Australia Network (CLAN) said an independent panel should supervise a redress scheme.

"Redress payments should be funded by economic contributions by the state and the churches and the charities that run all children's homes, foster care and other institutions," CLAN told the inquiry.

The inquiry heard there was evidence of abuse allegations going back 80 years.

CLAN chief executive Leonie Sheedy said many of CLANs members had a real fear of going into a nursing home.

"A lot of our members tell us they will commit suicide rather than go back into an institution again," Ms Sheedy said.

CLAN's submission and statement to the inquiry detailed a number of shocking abuse cases, some of which were heard in a 2004 Senate inquiry into children in institutional care.

CLAN said children who attempted to report institutional abuse were threatened, isolated, beaten and blamed, including being frequently locked in cupboards by their carers as punishment for raising allegations.

One girl, who reported abuse to nuns, was kicked by them and then told she was "the spawn of the devil", the organisation said.

CLAN said thousands of children who attempted to escape their abusers and some who made reports of sexual mistreatment were returned to the perpetrators, with police returning children who had run away to the religious and government homes.

The advocacy group strongly suggests these children were fleeing "rape and sexual or other forms of abuse".

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