Nation & World News
Administrators announce new Iraqi budget, currency
Much of Iraq’s $3.5 billion budget,
largely directed to infrastructure,
will come from oil revenue
By Dana Hull and
Jonathan S. Landay
Knight Ridder Newspapers (KRT)
BAGHDAD, Iraq — Iraq will get a
new national currency, an independ
ent central bank and a budget for the
rest of the year that calls for spending
oil money on electricity and other ba
sic needs, the ll.S.-led administration
announced Monday.
Money in most of Iraq still has
Saddam Hussein's picture on it and
there are only two notes, the 250-di
nar and 10,000-dinar. Many busi
nesses no longer accept the 10,000
dinar notes, forcing Iraqis to
exchange them for 250s, often at a
loss. The Kurdish-controlled part of
northern Iraq will use the new na
tional currency, too. It has been us
ing the so-called "Swiss" dinars that
existed before 1991, but they're so
old that they're falling apart.
The new Iraqi dinars — without
Saddam's picture — will be available
Oct. 15. They will come in denomina
tions of 50, 250, 1,000, 5,000, 10,000
and 25,000.
L. Paul Bremer, the top U.S. admin
istrator in Iraq, also approved Iraq's
national budget for the remainder of
2003. Nearly $3.5 billion, a little
more than half the budget, will come
from oil revenues. Several billion dol
lars will come from frozen assets or
assets that were found after the war.
The biggest line item in the budget is
improvements to the electricity sys
tem, with other money earmarked for
spending on justice and security, pub
lic health, water and sewage, and
telecommunications.
"The officials who used to steal
most of Iraq's resources, and misuse
what little was left have gone," Bremer
said in a radio and TV broadcast out
lining the economic plans. "All of
Iraq's resources will now be spent on
you, the Iraqi people, and on projects
which directly benefit you."
Bremer's team announced that
Faleh Salman will be the acting direc
tor of Iraq's central bank, and the
bank will be independent of other
branches of the government.
(c) 2003, Knight Ridder/Tribune
Information Services. Distributed
by Knight Ridder/Tribune Information
Services.
Judge OKs SEC-WorldCom bankruptcy settlement
Investors will receive $750 million
in cash and stock later this year
in compensation for fraud losses
By Jon Van and Michael Oneal
Chicago Tribune (KRT)
CHICAGO — A federal judge ap
proved a settlement between bank
rupt WorldCom Inc. and the Securi
ties and Exchange Commission that
would give defrauded investors
$750 million in cash and stock once
the company emerges from Chapter
11 bankruptcy proceedings later
this year.
The deal, which has been in the
works for months, is part of World
Corn's controversial effort to put its
bankruptcy and $11 billion account
ing fraud behind it.
"The proposed settlement is not
only fair and reasonable, but as good
an outcome as anyone could reason
ably expert in these difficult circum
stances," U.S. District Judge Jed S.
Rakoff said in a 14-page opinion.
Me added that the case "raises fun
damental questions" about how
market regulators and the courts
should respond when "criminals"
use a public company to commit
"massive fraud."
Competitors such as AT&T Corp.
and Verizon Communications Inc.
were quick to decry the settlement,
saying it simply isn't proportionate to
the billions of dollars in damages in
flicted upon WorldCom shareholders,
creditors and employees. They have
argued that WorldCom should be
forced to liquidate so that its assets
can be sold to other companies who
haven't committed fraud.
WorldCom's accounting scandal
was among numerous corporate mis
deeds last year that rocked investors
and Wall Street. The scandals have led
to tighter federal security laws and an
outcry for tougher corporate standards.
The fine, which will be distributed to
investors who lost everything when
WorldCom declared bankruptcy last
year, had originally been set at $ 1.5 bil
lion in cash, but later was reduced to
$500 million because of the firm's lim
ited cash reserves. It will come out of
assets otherwise reserved for creditors.
The $750 million final setdement
includes $250 million in stock that
the company will issue when it
emerges from bankruptcy under the
name MCI and resumes trading as a
public company.
By seeking a balance between re
lief for defrauded investors and the
desire to keep a company as large
and influential as WorldCom afloat,
Rakoff said he was trying to move
into new territory.
The judge acknowledged that in
vestors aren't getting a lot from the
SEC setdement, but said that a bigger
payout was made impossible both by
the bankruptcy law — which subordi
nates investors to other creditors —
and the general interest of keeping the
company afloat.
The effort to find a fair amount to
compensate investors is difficult be
cause much of the money World
Com once claimed to have has es
sentially vanished.
"The bottom line is the money
just isn't there," said Jim Speta, an
assistant professor of law at North
western University. "People want
their money back and want the peo
ple who committed fraud punished.
The judge is stuck making the best of
a bad situation."
(c) 2003, Chicago Tribune. Distributed
by Knight Ridder/Tribune Information
Services.
Tuition
continued from page 1
would pay about $1,236 per term in
tuition, an increase of 5.9 percent
from spring 2003, while a non-resi
dent student would pay $5,229 a
term, a 4.4 percent increase, accord
ing to the fee book. Overall, Universi
ty students would fork out about
$1,693 in both tuition and fees, an
increase from $1,618 in spring 2003.
Moseley said he believes the
plateau system will eventually be
eliminated completely from the Uni
versity because students making use
of the plateau rates are riding on the
backs of part-time students. Linder
the University's plateau system, stu
dents taking 13 to 16 credits pay the
same amount. This means students
going to school only part time have
to pay more per credit to cover Uni
versity operating costs.
"It's not fair to part time students
because it puts a heavier burden on
them," Moseley said. "Intrinsically,
you can understand that even if you
don't pay any more for a course, that
course still has to be paid for. There's
no way we can teach it for free."
According to the OUS Fee Book,
proposed changes at other universi
ties include compressing the tradi
tional tuition plateaus at Oregon In
stitute of Technology, Southern
Oregon University and Western Ore
gon University, and replacing the
plateau system altogether at Eastern
Oregon University and Portland State
University. Oregon State University
hopes to implement a modified per
credit structure, similar to what the
University proposes.
PSU and EOU have already called
for the complete elimination of their
plateau systems and both schools
want to charge tuition on a strictly
per-credit basis. Under the new sys
tem, students at the two institutions
would experience massive hikes in
tuition and fee charges: a 20.2 per
cent increase at EOU and a 18.4 per
cent increase at PSU. In the most ex
Ireme increase, non-resident gradu
ates at PSU may have to pay almost
66 percent more in fall 2003.
While some students understand
the need for tuition increases due to
Oregon's harsh economic condi
tions, they do not believe the pro
posed solutions are the best ones.
Oregon Student Association
Spokeswoman Amelie Welden said
the changes at different schools
would make education more expen
sive for many students.
"By eliminating the plateau,
you're encouraging students to take
fewer credits," Welden said. "That
means it would take students longer
to graduate."
In addition, she said, the changes
are being debated at a time when most
students are away for the summer.
"Students are totally unaware and
they'll get to school in the fall and
find tilings changed," she said. She
added that the new hikes are coming
on top of increases already made in
the last school year.
Senior general science major Jada
Lee said any kind of increases to tu
ition and fees would disappoint her.
"It's going to increase my loans
and it will take longer for me to pay
it off, "she said.
ASUO President Maddy Melton
said the University is becoming less
affordable for low-income students
and less accessible for middle-in
come students.
"We're urging the Oregon Legisla
ture to look for alternative income
sources," she said. "The state needs to
start funding its institutions instead
of having (funding) come on the
backs of students."
Contact the reporter
at ayishayahya@dailyemerald.com
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