Congress converting largest democracy to dynastic society: Arun Jaitley

BANGALORE: A day after Congress elevated Rahul Gandhi to number 2 in the hierarchy, the BJP reacted sharply stating the Congress's response to finding solutions to bourgeois problem is to convert the largest democracy to dynastic society.

"The reforms the party (Congress) has chanted is to take democracy to dynastic rule. The meeting (shivir) failed to address the issues of spiraling price raise, cap on LPG, investment coming to a standstill among others, but has promoted the dynasty rule," ArunJaitley, opposition leader in RajyaSabha, slammed Congress while participating in BJP convention organized by party's law and parliamentary cell on Sunday.

Perhaps, for the first time, BJP, the principal opposition criticized Congress after the party formally anointed Rahul as the party's vice-president - in other words, the No 2 in the hierarchy. Commenting on the elevation, which also means that Rahul is the party's candidate for Prime Minister in the 2014 elections, Jaitley said the parties from Kashmir to Tamil Nadu have forgotten the ideologies and were crowding around families. "Political parties have seized to be structural in nature. Ideologies have taken back seat and families are playing vital role in ruling the state. Only in the feudal society inheritance will be given importance and most of the parties barring Left parties to are following this route," he lamented.

He, however, said the public are smart not to take the developments as dictated by the Congress. Outlining the culture of political parties in the country, In the light of Rahul's elevation, the opposition leader in Rajya Sabha compared BJP with other parties and claimed that it was the only party in the country that was structural. He maintained that the chief ministers in BJP ruled states got the post out of clear merit, not due to the surnames they carry. "We have galaxies of chief ministers whose abilities have been proven. Barrack Obama did not become President of US on the basis of family name or caste. It was ability to lead and immense merit he took the top post," he said.

Jaitley said Rahul's anointment, who possibly will take on Gujarat strongman Narendra Modi in 2014 general elections, would put country at risk as his priority, experience, public knowledge and reforms mind is unknown.

Targetting AICC president Sonia Gandhi, the BJP leader said the middle-class in the country are disillusioned with UPA for rampant corruption, negative economic and infrastructure growth, spiraling price rise due to its anti-people policies. While inaugurating the shiver, Sonia made it clear that the youth and the urban middle class were the party's priorities for 2014.

Read More..

Attack at Algeria Gas Plant Heralds New Risks for Energy Development

The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")

As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.

Map by National Geographic

Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")

"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")

"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.

On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.

"A Hot Place to Drill"

The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.

Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.

Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.

Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.

"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."

This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.

Read More..

Algeria Hostage Crisis Over, One American Dead

After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.

One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.

But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."

Inside Algerian Hostage Crisis, One American Dead Watch Video

American Hostages Escape From Algeria Terrorists Watch Video

In a statement, President Obama said, "Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria. The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."

According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.

The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.

Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.

Read More..

Earl Smith is the man behind a military patch that President Obama prizes

AUSTIN — That February morning in 2008 found Barack Obama decidedly out of sorts.

He was locked in one battle with Hillary Rodham Clinton for the Democratic nomination that showed no signs of ending — and another with a vicious cold that felt the same way.

As he rode the service elevator in the backway of a convention hotel here, the snowy-haired African American operating it turned suddenly. He held out a black-and-gold bit of fabric embroidered with a screaming eagle.

“Senator Obama, I have something I want to give you,” the man said. “I’ve carried this military patch with me every day for 40 years, and I want you to carry it, and it will keep you safe in your journey.” Obama tried to refuse, but the older man persisted.

Big endeavors can find their meaning in small moments.

Later that day, Obama and his aides discussed the encounter. The future president pulled the patch from his pocket, along with about a dozen other items people had pressed upon him.

“This is why I do this,” he said. “Because people have their hopes and dreams about what we can do together.”

Two American stories intersected that morning in that elevator. The more famous, of course, is the one that begins its next chapter on Monday, as the nation’s first black president takes the oath of office for a second term.

But the other story also tells a lot about where this country has been and how far it has come.

No one in Obama’s small party that day noticed the man’s name tag or, if anyone did, the fact that it said Earl Smith was quickly forgotten.

No one knew how much of Smith’s life had been woven into a patch that, over four decades, found its way from the shoulder of an Army private to the pocket of a future commander-in-chief.

It was the only shred of cloth he had saved from the uniform of a nightmarish year in Vietnam. Smith fired artillery with a brigade that suffered 10,041 casualties during the course of the war. The brigade’s soldiers received 13 Congressional Medals of Honor.

The patch was waiting among his possessions when Smith was pardoned by the state of Georgia in 1977 after spending three years in prison for a crime he claimed was self-defense.

Smith kept it close as his lucky charm while he rebuilt his life and his reputation, starting with a job vacuuming hallways and changing sheets in an Atlanta Marriott. He carried it with him as he traveled halfway around the world again, to positions in hotels far from home, Riyadh in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Along the way, as he tended to travelers and made sure VIP gatherings went smoothly, he met three U.S. presidents.

His instincts told him Obama would make it four.

Like just about anyone else who was alive on Nov. 22, 1963, Smith can describe exactly where he was when he heard the horrific news: He was coming off a high school football practice field in his home town of San Benito, Tex.

Though not yet old enough to have voted for the man slain in Dallas, “I was devastated — a lot of us young people were — because John Kennedy was the young president,” recalled Smith, now 68.

Read More..

India ruling party urges Rahul Gandhi stand for PM

JAIPUR, India: Leaders of the ruling Congress party on Saturday clamoured for Rahul Gandhi -- scion of India's Nehru-Gandhi dynasty -- to be named the prime ministerial candidate ahead of next year's polls.

Gandhi, 42, has preferred to take a back seat in the party's politics until now, concentrating instead on leading the Congress youth wing into the general elections due in 2014.

But Oil Minister Veerappa Moily hailed Gandhi as the country's leader for the "present and for the future" at a meeting of the party in the tourist city of Jaipur in northern India aimed at brainstorming for the 2014 elections.

Another veteran Congress member, Mani Shankar Aiyar, said the party would back Gandhi, whose father, grandmother and great-grandfather all led India, should he decide to accept a bigger role.

Sanjay Nirupam, a Congress leader from the western Maharashtra state, also pitched at the meeting for Gandhi to be formally projected as the new leader and provide a fresh momentum to the party's electoral fortunes.

Gandhi "is our candidate for the post of prime minister after the 2014 elections", Nirupam told reporters at the weekend meeting where pictures of the young politician were prominently featured.

Calls for Gandhi to take a greater role within the party have become louder in recent months, especially in the wake of reverses suffered by the Congress-led government in some of its traditional strongholds.

Congress, India's oldest political party, was routed in polls in the states of Uttar Pradesh, Gujarat, Punjab and Goa last year.

Manmohan Singh, the 80-year-old current prime minister, has been buffeted by falling economic growth and a damaging series of corruption scandals.

But Gandhi's appetite for India's turbulent political scene has often been questioned by critics due to his refusal to accept repeated requests to take on ministerial responsibilities.

Sonia Gandhi, mother of Rahul Gandhi, and Congress party president, on Friday said the meeting was taking place as Congress faces "serious challenges" in states long-considered strongholds for the party.

She also conceded that some of the left-leaning government's wide-ranging welfare subsidy programmes had failed to reap political benefits.

-AFP/ac

Read More..

Chintan Shivir: Congress leaders pitch for Rahul Gandhi as PM candidate

JAIPUR: Amid talk that Rahul Gandhi will be given a larger responsibility, clamour for declaring him as the Congress prime ministerial candidate grew louder at the party's Chintan Shivir on Saturday.

Union ministers Jyotiraditya Scindia, Rajiv Shukla, Jitin Prasada, senior leader Manishankar Aiyar batted for larger responsibility for Rahul as the party recognised the need to respond to the demands of "new changing India peopled by a more younger" generation.

Young leader Milind Deora said, "It is a consensus and feeling in the Shivir that youths should be empowered.

On the first day also, a number of leaders including Raj Babbar and Avtar Singh Badhana had demanded that Rahul should be declared Congress PM candidate before the party goes to next Lok Sabha polls.

"Rahul will lead the party during 2014 general elections and would be the prime ministerial candidate," party leader Sanjay Nirupam said before the discussions began on Day-2.

Uttar Pradesh leader Jitin Prasada said, "Things are being discussed as to how we can ensure participation of youths. Rahul is certainly our leader and he will lead 2014 general elections of Congress and the country as well."

Union minister Veeprappa Moily said, "Rahul is already a leader.We have stable leaders we are proud of them. Congress has always enjoyed great leadership. If there is any disconnect we are discussing these concerns and will ensure that there is proper connect."

About the demand for larger role to Rahul, Union minister Rajiv Shukla said, "It is to be decided by Sonia and Rahul, we can only demand and we are demanding.

Read More..

Attack at Algeria Gas Plant Heralds New Risks for Energy Development

The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")

As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.

Map by National Geographic

Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")

"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")

"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.

On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.

"A Hot Place to Drill"

The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.

Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.

Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.

Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.

"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."

This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.

Read More..

Te'o Denies Involvement in Girlfriend Hoax

Notre Dame star linebacker Manti Te'o told ESPN that he "never, not ever" was involved in creating the hoax that had him touting what turned out to be a fictional girlfriend, "Lennay Kekua."

"When they hear the facts, they'll know," Te'o told ESPN's Jeremy Schaap in his first interview since the story broke. "They'll know that there is no way that I could be a part of this."

"I wasn't faking it," he said during a 2 1/2-hour interview, according to ESPN.com.

Te'o said he only learned for sure this week that he had been duped. On Wednesday, he received a Twitter message, allegedly from a man named Ronaiah Tuiasosopo, apologizing for the hoax, Te'o told Schaap.

The sports website Deadspin, which first revealed the hoax this week, has reported that Tuiasosopo, a 22-year-old of Samoan descent who lives in Antelope Valley, Calif., asked a woman he knew for her photo and that photo became the face of Kekua's Twitter account.

Te'o told Schaap that Tuiasosopo was represented to him as Kekua's cousin.

"I hope he learns," Te'o said of Tuiasosopo, according to coverage of the interview on ESPN.com. "I hope he understands what he's done. I don't wish an ill thing to somebody. I just hope he learns. I think embarrassment is big enough."

Click Here for a Who's Who in the Manti Te'o Case

AP Photo/ESPN Images, Ryan Jones

Manti Te'o Hoax: Was He Duped or Did He Know? Watch Video

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Te'o admitted to a few mistakes in his own conduct, including telling his father he met Kekua in Hawaii even though his attempt to meet her actually failed. Later retellings of that tale led to inconsistencies in media reports, Te'o said, adding that he never actually met Kekua in person.

Te'o added that he feared people would think it was crazy for him to be involved with someone that he never met, so, "I kind of tailored my stories to have people think that, yeah, he met her before she passed away."

The relationship got started on Facebook during his freshman year, Te'o said.

"My relationship with Lennay wasn't a four-year relationship," Te'o said, according to ESPN.com. "There were blocks and times and periods in which we would talk and then it would end."

He showed Schaap Facebook correspondence indicating that other people knew of Kekua -- though Te'o now believes they, too, were tricked.

The relationship became more intense, Te'o said, after he received a call that Kekua was in a coma following a car accident involving a drunk driver on April 28.

Soon, Te'o and Kekua became inseparable over the phone, he said, continuing their phone conversations through her recovery from the accident, and then during her alleged battle against leukemia.

Even so, Te'o never tried to visit Kekua at her hospital in California.

"It never really crossed my mind," he said, according to ESPN.com. "I don't know. I was in school."

But the communication between the two was intense. They even had ritual where they discussed scripture every day, Te'o said. His parents also participated via text message, and Te'o showed Schaap some of the texts.

On Sept. 12, a phone caller claiming to be Kekua's relative told Te'o that Kekua had died of leukemia, Te'o said. However, on Dec. 6, Te'o said he got a call allegedly from Kekua saying she was alive. He said he was utterly confused and did not know what to believe.

ESPN's 2 1/2-hour interview was conducted in Bradenton, Fla., with Te'o's lawyer present but without video cameras. Schaap said Te'o was composed, comfortable and in command, and that he said he didn't want to go on camera to keep the setting intimate and avoid a big production.

According to ABC News interviews and published reports, Te'o received phone calls, text messages and letters before every football game from his "girlfriend." He was in contact with her family, including a twin brother, a second brother, sister and parents. He called often to check in with them, just as he did with his own family. And "Kekua" kept in contact with Te'o's friends and family, and teammates spoke to her on the phone.

Read More..

Earl Smith is the man behind a military patch that President Obama prizes

AUSTIN, Tex. — That February morning in 2008 found Barack Obama decidedly out of sorts.

He was locked in one battle with Hillary Rodham Clinton for the Democratic nomination that showed no signs of ending — and another with a vicious cold that felt the same way.

As he rode the service elevator in the backway of a convention hotel here, the snowy-haired African American operating it turned suddenly. He held out a black-and-gold bit of fabric embroidered with a screaming eagle.

“Senator Obama, I have something I want to give you,” the man said. “I’ve carried this military patch with me every day for 40 years, and I want you to carry it, and itwill keep you safe in your journey.” Obama tried to refuse, but the older man persisted.

Big endeavors can find their meaning in small moments.

Later that day, Obama and his aides discussed the encounter. The future president pulled the patch from his pocket, along with about a dozen other items people had pressed upon him.

“This is why I do this,” he said. “Because people have their hopes and dreams about what we can do together.”

Two American stories intersected that morning in that elevator. The more famous, of course, is the one that begins its next chapter on Monday, as the nation’s first black president takes the oath of office for a second term.

But the other story also tells a lot about where this country has been and how far it has come.

No one in Obama’s small party that day noticed the man’s name tag or, if anyone did, the fact that it said Earl Smith was quickly forgotten.

No one knew how much of Smith’s life had been woven into a patch that, over four decades, found its way from the shoulder of an Army private to the pocket of a future commander-in-chief.

It was the only shred of cloth he had saved from the uniform of a nightmarish year in Vietnam. Smith fired artillery with a brigade that suffered 10,041 casualties during the course of the war. The brigade’s soldiers received 13 Congressional Medals of Honor.

The patch was waiting among his possessions when Smith was pardoned by the state of Georgia in 1977 after spending three years in prison for a crime he claimed was self-defense.

Smith kept it close as his lucky charm while he rebuilt his life and his reputation, starting with a job vacuuming hallways and changing sheets in an Atlanta Marriott. He carried it with him as he traveled halfway around the world again, to positions in hotels far from home, Riyadh in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Along the way, as he tended to travelers and made sure VIP gatherings went smoothly, he met three U.S. presidents.

His instincts told him Obama would make it four.

Like just about anyone else who was alive on Nov. 22, 1963, Smith can describe exactly where he was when he heard the horrific news: He was coming off a high school football practice field in his home town of San Benito, Tex.

Though not yet old enough to have voted for the man slain in Dallas, “I was devastated — a lot of us young people were — because John Kennedy was the young president,” recalled Smith, now 68.

Read More..

Floods ease in Jakarta, at least 11 dead

JAKARTA: Floods in Indonesia's capital Jakarta which have killed at least 11 people and left two missing eased on Friday, authorities said, warning however of more torrential rains which could hamper relief efforts.

The capital's worst floods in five years have forced 18,000 people from their homes, the nation's disaster agency said, with many ferried to temporary shelters on rafts.

"Since January 15, 11 people have died, five of which from electrocution," said National Disaster Mitigation Agency spokesman Sutopo Purwo Nugroho.

Among the dead were two children aged two and 13, said Nugroho, adding that eight percent of the capital was still inundated on Friday morning and a city-wide state of emergency would apply until January 27.

By afternoon though, floodwaters had receded in central Jakarta and traffic was back to normal.

Jakarta police spokesman Rikwanto, who goes by one name, said that two men had been trapped since Thursday morning in a flooded parking lot in the capital's business district.

"Rescuers are still struggling to search for them," he said, adding that 2,781 police had been deployed to help assist victims from the floods.

At least four scuba divers were also helping to locate the missing, according to an AFP correspondent.

Authorities raised the flood alert to its highest level on Thursday, warning that the torrential rains would not subside until the end of the week.

"Based on weather forecast, heavy rains will continue pouring down until Saturday," the agency's spokesman Nugroho said.

Authorities rushed against time on Friday to fix a dike which collapsed due to floods near one of Jakarta business areas. Two excavators were seen and dozens of military personnel joined efforts to repair it.

The flooding caused chaos in the morning in Jakarta's upmarket downtown district, causing hours-long traffic jams as motorists struggled to get to work. Drivers could be seen standing miserably in raincoats, waiting for their flooded cars to be towed away. Other vehicles lay abandoned by the side of the road.

At the landmark Hotel Indonesia traffic circle, surrounded by office towers and five-star hotels, the brown floodwaters continued to swirl, forcing the nearby British, German and French embassies to remain shut.

As the waters receded, the area around the Grand Hyatt and upmarket shopping centres was left caked in mud.

A spokeswoman for the Mandarin Oriental said that despite the flooding, the hotel had seen a surge in demand for rooms from well-to-do clientele prevented from going home by the waters.

Greater Jakarta, home to 20 million people, is notorious for its traffic-clogged streets, but the floods brought a new dimension to the commute.

"It took me two hours to get to work," said Shinta Maharani, whose home is just seven kilometres (four miles) from her office. "I had to abandon the motorbike taxi and walk for 40 minutes because the road ahead was submerged."

Many train and bus routes serving the city centre were also suspended.

In one of worst hit areas in East Jakarta, a man in his early forties told AFP that the government's inability to mitigate annual flooding was causing him to lose hope.

"The government can only talk and talk...every year the condition is like this. All furniture, all of them in my bedroom, my television are broken," he said in his flooded neighbourhood.

Television footage showed a large monitor lizard and a three-metre long snake moving through the floodwaters in residential areas of the capital.

The floods were the worst to hit the capital since 2007, when about 50 people were killed and more than 300,000 were displaced.

Even the presidential palace was inundated by the waters on Thursday, with President Susilo Bambang Yudhoyono pictured in the grounds in rolled-up trousers.

- AFP/xq

Read More..