Global Shortages During Coronavirus Reveal Failings of Just in Time Manufacturing

In the story of how the modern world was constructed, Toyota stands out as the mastermind of a monumental advance in industrial efficiency. The Japanese automaker pioneered so-called Just In Time manufacturing, in which parts are delivered to factories right as they are required, minimizing the need to stockpile them.

Over the last half-century, this approach has captivated global business in industries far beyond autos. From fashion to food processing to pharmaceuticals, companies have embraced Just In Time to stay nimble, allowing them to adapt to changing market demands, while cutting costs.

But the tumultuous events of the past year have challenged the merits of paring inventories, while reinvigorating concerns that some industries have gone too far, leaving them vulnerable to disruption. As the pandemic has hampered factory operations and sown chaos in global shipping, many economies around the world have been bedeviled by shortages of a vast range of goods — from electronics to lumber to clothing.

In a time of extraordinary upheaval in the global economy, Just In Time is running late.

“It’s sort of like supply chain run amok,” said Willy C. Shih, an international trade expert at Harvard Business School. “In a race to get to the lowest cost, I have concentrated my risk. We are at the logical conclusion of all that.”

shortage of computer chips — vital car components produced mostly in Asia. Without enough chips on hand, auto factories from India to the United States to Brazil have been forced to halt assembly lines.

But the breadth and persistence of the shortages reveal the extent to which the Just In Time idea has come to dominate commercial life. This helps explain why Nike and other apparel brands struggle to stock retail outlets with their wares. It’s one of the reasons construction companies are having trouble purchasing paints and sealants. It was a principal contributor to the tragic shortages of personal protective equipment early in the pandemic, which left frontline medical workers without adequate gear.

a shortage of lumber that has stymied home building in the United States.

Suez Canal this year, closing the primary channel linking Europe and Asia.

“People adopted that kind of lean mentality, and then they applied it to supply chains with the assumption that they would have low-cost and reliable shipping,” said Mr. Shih, the Harvard Business School trade expert. “Then, you have some shocks to the system.”

presentation for the pharmaceutical industry. It promised savings of up to 50 percent on warehousing if clients embraced its “lean and mean” approach to supply chains.

Such claims have panned out. Still, one of the authors of that presentation, Knut Alicke, a McKinsey partner based in Germany, now says the corporate world exceeded prudence.

“We went way too far,” Mr. Alicke said in an interview. “The way that inventory is evaluated will change after the crisis.”

Many companies acted as if manufacturing and shipping were devoid of mishaps, Mr. Alicke added, while failing to account for trouble in their business plans.

“There’s no kind of disruption risk term in there,” he said.

Experts say that omission represents a logical response from management to the incentives at play. Investors reward companies that produce growth in their return on assets. Limiting goods in warehouses improves that ratio.

study. These savings helped finance another shareholder-enriching trend — the growth of share buybacks.

In the decade leading up to the pandemic, American companies spent more than $6 trillion to buy their own shares, roughly tripling their purchases, according to a study by the Bank for International Settlements. Companies in Japan, Britain, France, Canada and China increased their buybacks fourfold, though their purchases were a fraction of their American counterparts.

Repurchasing stock reduces the number of shares in circulation, lifting their value. But the benefits for investors and executives, whose pay packages include hefty allocations of stock, have come at the expense of whatever the company might have otherwise done with its money — investing to expand capacity, or stockpiling parts.

These costs became conspicuous during the first wave of the pandemic, when major economies including the United States discovered that they lacked capacity to quickly make ventilators.

“When you need a ventilator, you need a ventilator,” Mr. Sodhi said. “You can’t say, ‘Well, my stock price is high.’”

When the pandemic began, car manufacturers slashed orders for chips on the expectation that demand for cars would plunge. By the time they realized that demand was reviving, it was too late: Ramping up production of computer chips requires months.

stock analysts on April 28. The company said the shortages would probably derail half of its production through June.

The automaker least affected by the shortage is Toyota. From the inception of Just In Time, Toyota relied on suppliers clustered close to its base in Japan, making the company less susceptible to events far away.

In Conshohocken, Pa., Mr. Romano is literally waiting for his ship to come in.

He is vice president of sales at Van Horn, Metz & Company, which buys chemicals from suppliers around the world and sells them to factories that make paint, ink and other industrial products.

In normal times, the company is behind in filling perhaps 1 percent of its customers’ orders. On a recent morning, it could not complete a tenth of its orders because it was waiting for supplies to arrive.

The company could not secure enough of a specialized resin that it sells to manufacturers that make construction materials. The American supplier of the resin was itself lacking one element that it purchases from a petrochemical plant in China.

One of Mr. Romano’s regular customers, a paint manufacturer, was holding off on ordering chemicals because it could not locate enough of the metal cans it uses to ship its finished product.

“It all cascades,” Mr. Romano said. “It’s just a mess.”

No pandemic was required to reveal the risks of overreliance on Just In Time combined with global supply chains. Experts have warned about the consequences for decades.

In 1999, an earthquake shook Taiwan, shutting down computer chip manufacturing. The earthquake and tsunami that shattered Japan in 2011 shut down factories and impeded shipping, generating shortages of auto parts and computer chips. Floods in Thailand the same year decimated production of computer hard drives.

Each disaster prompted talk that companies needed to bolster their inventories and diversify their suppliers.

Each time, multinational companies carried on.

The same consultants who promoted the virtues of lean inventories now evangelize about supply chain resilience — the buzzword of the moment.

Simply expanding warehouses may not provide the fix, said Richard Lebovitz, president of LeanDNA, a supply chain consultant based in Austin, Texas. Product lines are increasingly customized.

“The ability to predict what inventory you should keep is harder and harder,” he said.

Ultimately, business is likely to further its embrace of lean for the simple reason that it has yielded profits.

“The real question is, ‘Are we going to stop chasing low cost as the sole criteria for business judgment?’” said Mr. Shih, from Harvard Business School. “I’m skeptical of that. Consumers won’t pay for resilience when they are not in crisis.”

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Hong Kong Has a New Type of Prisoner: Pro-Democracy Activists

HONG KONG — A half year after he got out of prison, Daniel Tang has made a habit of going back. He waits in spare, crowded corridors. He greets familiar faces among the fellow visitors and guards. He brings books, postage stamps, writing paper and packets of M&Ms.

Mr. Tang is visiting people like him who were imprisoned for their role in the pro-democracy street protests that rocked Hong Kong in 2019. He travels three hours, round-trip, for a 15-minute chat through a thick plate of glass, sometimes with a total stranger. He summons a cheery, chatty demeanor, when he feels anything but.

“You owe them your best face,” he said. “If you’re not feeling right, don’t even bother going.”

Mr. Tang and many of those he meets with represent a new breed of convict in Hong Kong: activists who opposed the Chinese Communist Party’s growing power in the city. This group — often including college students or white-collar professionals — rose up two years ago in a historic campaign of public disobedience that led to clashes with police on the streets and focused the world’s attention on the future of the Asian financial capital.

tough new laws imposed by Beijing, mass arrests and the hazards of the coronavirus. Now, with dim job prospects, a fraught political future and the unending threat of another arrest, those protesters are emblematic of the uncertainties facing the city’s stricken democracy movement.

about 7,000 people. Beijing’s imposition last year of a national security law gives prosecutors greater powers to target even more.

Many of the activists are contemplating a future in exile. Others struggle to stay committed to the cause for which they sit behind bars.

“Being sentenced to jail fractures people,” said Alex Chow, a 30-year-old activist who spent a brief time in jail for his role as a leader of protests in 2014, a precursor to the 2019 demonstrations. He now lives in exile in the United States.

as well as veterans. Those sentenced to prison so far include Joshua Wong, Agnes Chow and Ivan Lam, young leaders of the 2014 protests. Wong Ji-yuet, 23, and Owen Chow, 24, activists who participated in a primary election that was organized by the pro-democracy camp, are awaiting trial in solitary confinement after they were charged with endangering national security.

For many young people in jail, the sentences have redrawn their lives.

Jackie Yeung, a 23-year-old university student serving a three-year prison sentence, said she had abandoned the “typical ambitions” she used to harbor — getting a good job and an apartment in a family-friendly district.

statement ahead of her sentencing. “And I have no way of comforting them through the glass in the visitation room in prison.”

She dreams of opening up a small business importing Taiwanese pineapples after she and a Taiwanese cellmate are released. With the profits, she would support other young people by helping to pay their legal fees and living expenses. “To do anything, you need money,” she said.

To make things easier on prisoners, Mr. Tang and some other activists have banded together to provide support. They write letters and gazettes to catch people up with protest news and raise funds to pay for better meals in jail while protesters await trials.

Mr. Tang frequently sees Ms. Yeung. During one visit to her prison near the border with the mainland city of Shenzhen, he brought pens and stamps. He left the stamps, but was unable to give her the pens, as it would have exceeded her monthly allowance of two.

For all of his dedication, Mr. Tang, who spent more than a half-year imprisoned after pleading guilty to arson charges, says it doesn’t feel like it’s enough.

“Many Hong Kongers have moved on and moved away and don’t think about how there is a group of people sitting behind bars for the movement we all fought for,” said Mr. Tang, who is in his late 30s. “It seems many have forgotten.”

Far from radicalizing during his time on the inside, Mr. Tang now struggles with cynicism and meaning in a city that suddenly seems unfamiliar. He has been disheartened by the protest movement’s stagnation and by the waves of migration out of the city. The camaraderie of protest has been replaced by dread of ever more targeted arrests. He sees it all as an abandonment of values and believes that escape is a privilege unavailable to many.

Mr. Tang’s protester friends from prison also seem to be moving on. A group chat they kept, called the “Lai Chi Kok Prisoners,” after the facility where they were detained, still lights up occasionally with holiday greetings and vague laments. But few want to talk politics. Sometimes those in prison that do speak out seem to be exaggerating their place in the movement. He rolls his eyes at one prisoner, who has taken to calling himself Mandela 2.0.

“All that we have left is our relationships with one another,” he said. “Some seem ready to let that go.”

Yet, for Mr. Tang, there is no road back — not that he’d take it. His former employer was understanding, but let him go when his absence stretched on. He has been unable to access his life savings, he said, after his bank account was frozen over automated donations he made in 2019 to a protester bail fund that police placed under investigation.

He has applied to managerial jobs like those he had worked in the past, only to be turned away because of his criminal record. Now, he’s mulling applying for a taxi license or working in construction.

He still faces four charges related to the protests that were filed just days before his release from prison. The thought of officers at his door has kept him away from the apartment he shares with his mother. He tells her he now works a night shift, and she doesn’t press him.

“I’m really tired,” Mr. Tang said. “The government has left us no room to resist and nowhere to go.”

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Belarus Plane Crisis Tightens Lukashenko’s Awkward Embrace of Putin

MOSCOW — He may be the Kremlin’s closest ally, but his loyalty remains in doubt.

When Aleksandr G. Lukashenko, the eccentric and brutal leader of Belarus, forced down a European passenger jet on Sunday to arrest a dissident, he ushered in a new and even more brittle phase in one of the post-Soviet region’s most convoluted and consequential relationships: the one between Mr. Lukashenko and President Vladimir V. Putin of Russia.

The two are increasingly leaning on each other in the face of conflict with the West, but they have sharply diverging interests. Mr. Lukashenko, who has ruled for 26 years, relies on his iron grip on his country to assure his survival. Mr. Putin wants to expand Russian influence in Belarus, undermining Mr. Lukashenko’s authority in the process.

Now, with a summit meeting with President Biden looming in June, Mr. Putin faces a choice over how much political capital to expend to continue supporting Mr. Lukashenko, whose commandeering of the Ryanair plane has complicated the Kremlin’s efforts to smooth relations with the West. Russian officials and pro-Kremlin news outlets have taken Mr. Lukashenko’s side in the furor, but Mr. Lukashenko’s leading Belarusian opponents believe that the Kremlin’s support is only skin deep.

“In the Russian Foreign Ministry, in the Kremlin, I think that people can’t stand Lukashenko,” Franak Viacorka, a senior adviser to the exiled Belarusian opposition leader Svetlana Tikhanovskaya, said in a telephone interview. “But at the same time, since there’s not anyone more pro-Russian, they prefer to keep Lukashenko for now.”

Roman Protasevich — who had been on a Belarusian list of “terrorists” because he co-founded a social-media outlet that galvanized and organized last year’s protests.

On Monday, the Kremlin’s spokesman, Dmitri S. Peskov, told journalists in his regular daily briefing that he could not comment on the Ryanair incident. “It is up to the international authorities to assess the case,” he said.

It took another 24 hours for the Kremlin to formulate its final message; Belarus’s actions were “in line with international regulations,” Mr. Peskov said on Tuesday.

as directed by E.U. leaders who voiced outrage over what they called Mr. Lukashenko’s “hijacking.” But speaking in a marble-paneled hall of the Minsk House of Government, Mr. Lukashenko was defiant, claiming that a bomb threat against the plane had arrived from Switzerland.

“Don’t you cast blame on me!” Mr. Lukashenko thundered, jabbing his finger into the air. “I acted legally defending my people, and it will also be thus in the future.”

In Moscow, Mr. Lukashenko is widely seen as a frustrating and fickle partner. Despite his reliance on the Kremlin, for instance, he still has not recognized as valid the annexation of Crimea in 2014, which many Russians see as Mr. Putin’s crowning foreign policy achievement.

“It’s a pretty serious mistake to think that Moscow can snap its fingers to solve its problems in Minsk,” said Pavel Slunkin, a former Belarusian diplomat who resigned last year in protest against Mr. Lukashenko’s policies. “Lukashenko will try to avoid further dependence on Moscow in every possible way.”

Andrei Kortunov, the director general of the Russian International Affairs Council, a Moscow research institute co-founded by the Russian Foreign Ministry, likened Mr. Lukashenko to the Syrian ruler Bashar al-Assad, another difficult Kremlin ally.

After Russia propped up Mr. Lukashenko in his hour of need last summer, long-sought benefits were expected to accrue to the Kremlin. Mr. Lukashenko could have signed an agreement for a Russian military base in Belarus or allowed Russian investment into major Belarusian enterprises on favorable terms. But despite three face-to-face meetings between Mr. Lukashenko and Mr. Putin since last September — a fourth is expected in the coming days — none of that materialized.

“You’d think: The regime was saved, and he should have paid,” Mr. Kortunov said of Mr. Lukashenko. “But we’re not seeing that.”

Continuing to prop up Mr. Lukashenko could be costly for Mr. Putin, Mr. Kortunov warned. As Mr. Putin prepares for a summit meeting with President Biden scheduled to take place in Geneva on June 16, Russian officials have telegraphed that they want to lower tensions with the United States. One factor is domestic politics: Amid protests and discontent over economic stagnation, the Kremlin faces a public disapproving of foreign adventurism.

“The social contract of, ‘We won’t give you sausage, but we’ll make Russia a great power’ — this no longer works,” Mr. Kortunov said, describing Mr. Putin’s approach. “He understands that he needs to change the agenda. He won’t win any more with foreign policy.”

Mr. Lukashenko’s opponents are now pushing for the United States and Europe to enact more sanctions against Belarus that would further isolate him and perhaps provoke a split in the elite. Ms. Tikhanovskaya, the opposition leader, spent nearly 40 minutes on the phone earlier this week with Jake Sullivan, Mr. Biden’s national security adviser, her aide, Mr. Viacorka, said.

“When the Belarusian issue is discussed in the context of the Russian one, it becomes impossible to solve,” Mr. Viacorka said.

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WhatsApp Sues India’s Government to Stop New Internet Rules

SAN FRANCISCO — WhatsApp sued the Indian government on Wednesday to stop what it said were oppressive new internet rules that would require it to make people’s messages “traceable” to outside parties for the first time.

The lawsuit, filed by WhatsApp in the Delhi High Court, seeks to block the enforceability of the rules that were handed down by the government this year. WhatsApp, a service owned by Facebook that sends encrypted messages, claimed in its suit that the rules, which were set to go into effect on Wednesday, were unconstitutional.

Suing India’s government is a highly unusual step by WhatsApp, which has rarely engaged with national governments in court. But the service said that making its messages traceable “would severely undermine the privacy of billions of people who communicate digitally” and effectively impair its security.

“Civil society and technical experts around the world have consistently argued that a requirement to ‘trace’ private messages would break end-to-end encryption and lead to real abuse,” a WhatsApp spokesman said. “WhatsApp is committed to protecting the privacy of people’s personal messages and we will continue to do all we can within the laws of India to do so.”

a broadening battle between the biggest tech companies and governments around the world over which of them has the upper hand. Australia and the European Union have drafted or passed laws to limit the power of Google, Facebook and other companies over online speech, while other countries are trying to rein in the companies’ services to stifle dissent and squash protests. China has recently warned some of its biggest internet companies against engaging in anticompetitive practices.

In India, Prime Minister Narendra Modi and his ruling Bharatiya Janata Party have worked for several years to corral the power of the tech companies and more strictly police what is said online. In 2019, the government proposed giving itself vast new powers to suppress internet content, igniting a heated battle with the companies.

The rules that WhatsApp is objecting to were proposed in February by Ravi Shankar Prasad, India’s law and information technology minister. Under the rules, the government could require tech companies to take down social media posts it deemed unlawful. WhatsApp, Signal and other messaging companies would also be required to create “traceable” databases of all messages sent using the service, while attaching identifiable “fingerprints” to private messages sent between users.

WhatsApp has long maintained that it does not have insight into user data and has said it does not store messages sent between users. That is because the service is end-to-end encrypted, which allows for two or more users to communicate securely and privately without allowing others to access the messages.

More than a billion people rely on WhatsApp to communicate with friends, family and businesses around the world. Many users are in India.

ordered to take down dozens of social media posts that were critical of Mr. Modi’s government and its response to the coronavirus pandemic, which has ravaged the country. Government officials said the posts should be removed because they could incite panic and could hinder its response to the pandemic.

The social media companies complied with many of the requests by making the posts invisible inside India, though they were still visible to people outside the country. In the past, Twitter and Facebook have reposted some content after determining that it didn’t break the law.

Tensions between tech companies and the Indian government escalated this week when the police descended on the New Delhi offices of Twitter to contest labels affixed to certain tweets from senior members of the government. While Twitter’s offices were empty, the visit symbolized the mounting pressure on social media companies to rein in speech seen as critical of the ruling party.

Facebook and WhatsApp have long maintained working relationships with the authorities in dozens of countries, including India. Typically, WhatsApp has said it will respond to lawful requests for information and has a team that assists law enforcement officials with emergencies involving imminent harm.

Only rarely has WhatsApp pushed back. The service has been shut down many times in Brazil after the company resisted requests for user data from the government. And it has skirmished with U.S. officials who have sought to install “back doors” in encrypted messaging services to monitor for criminal activity.

But WhatsApp argued that even if it tried enacting India’s new “traceability” rules, the technology would not work. Such a practice is “ineffective and highly susceptible to abuse,” the company said.

Other technology firms and digital rights groups like Mozilla and the Electronic Frontier Foundation said this week that they supported WhatsApp’s fight against “traceability.”

“The threat that anything someone writes can be traced back to them takes away people’s privacy and would have a chilling effect on what people say even in private settings, violating universally recognized principles of free expression and human rights,” WhatsApp said.

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Disney Could Have Bought Time Warner in 2016

“About $20 billion of long positions were liquidated last week,” Sam Bankman-Fried, the C.E.O. of the crypto derivatives exchange FTX, told DealBook. “In terms of price movements: the biggest part of it is liquidations,” he said, suggesting the worst is over. But he also noted news from China late Friday of a crackdown on Bitcoin mining and trading. This added to other news of official scrutiny that has spooked crypto investors in recent days:

Companies with Bitcoin on their balance sheets may be getting nervous. For accounting purposes, crypto is valued at its purchase price. If it goes up in value, this isn’t reflected in a company’s accounts but if it falls, the value is impaired and puts a dent in quarterly profits. Let’s check in on the three big corporate Bitcoin holders — Tesla, MicroStrategy, and Square — shall we?


Barry Diller, when asked by Andrew on CNBC’s Squawk Box whether he thinks Disney’s C.E.O., Bob Chapek, has pushed his predecessor, Bob Iger, to the sidelines, as he suggested earlier in the interview. (And “not very nicely,” per Diller.)


The investment bank Lazard has hired William McRaven, the retired Navy admiral who led the U.S. Special Operations Command, as a senior adviser for its financial advisory business. McRaven oversaw the raid that killed Osama Bin Laden.

His hiring underscores business’ concerns about geopolitics. The pandemic has highlighted the potential business risks of global interconnectedness and China’s increasing assertiveness, among the many fault lines that multinational companies face.

McRaven is the latest financial outsider to join Lazard. Memorably, the firm hired the late Vernon Jordan, the civil rights leader with a gold-plated Rolodex, in 2000. “It’s not a place that is big on golfing,” said Peter Orszag, the head of financial advisory at Lazard, himself a veteran of the Clinton and Obama administrations. Bringing such people on board brings both intellectual “content” and deep relationships around the world, Orszag said.


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How the Pandemic Has Changed Attitudes Toward Wealth

Several key metrics of defining wealth had fallen in the past three years. In 2018, 65 percent of respondents felt that wealth gave them peace of mind, but that number had fallen to 53 percent by this spring. Half of the respondents equated wealth with happiness, four percentage points lower than in 2018.

In another shift, more people said wealth meant success in life — that was up to 50 percent, from 40 percent last time.

“A big component of success is still making money, but it’s just not making money to increase your financial capital,” Mr. Baker said. “It’s accomplishing something in the process, to build other things, to take some of that financial capital and put it into something else.”

Mr. Norton said his priorities had shifted to focusing more on the people around him, so he decided to pay the first half of his company’s Christmas bonus to employees in May. “I did it just to make sure they were OK,” he said. “I focused less on my net worth and income and more on making sure we’re doing the right thing for our clients but also making sure my staff and my family was OK.”

For others, though, the mandated isolation focused their mind. Douglas Swets, an angel investor in early-stage start-ups, said the pandemic brought greater clarity and focus to the investments he and his partners were making.

“After a year of Zoom meetings, I can have a lot more meetings and it’s improved our due diligence,” he said. “We can have more people doing reference calls. You get all the questions answered.”

At the same time, Mr. Swets, who is married with two adult children, said the investments that he reviewed were not necessarily better given the extra time. If anything, they were actually riskier, but the pandemic gave him a different view on investing.

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100 Million Vaccine Doses Held Up Over Contamination Concerns, Emergent Reveals

WASHINGTON — The chief executive of Emergent BioSolutions, whose Baltimore plant ruined millions of coronavirus vaccine doses, disclosed for the first time on Wednesday that more than 100 million doses of Johnson & Johnson’s vaccine are now on hold as regulators check them for possible contamination.

In more than three hours of testimony before a House subcommittee, the chief executive, Robert G. Kramer, calmly acknowledged unsanitary conditions, including mold and peeling paint, at the Baltimore plant. He conceded that Johnson & Johnson — not Emergent — had discovered contaminated doses, and he fended off aggressive questions from Democrats about his stock sales and hundreds of thousands of dollars in bonuses for top company executives.

Emergent’s Bayview Baltimore plant was forced to halt operations a month ago after contamination spoiled the equivalent of 15 million doses, but Mr. Kramer told lawmakers that he expected the facility to resume production “in a matter of days.” He said he took “very seriously” a report by federal regulators that revealed manufacturing deficiencies and accepted “full responsibility.”

“No one is more disappointed than we are that we had to suspend our 24/7 manufacturing of new vaccine,” Mr. Kramer told the panel, adding, “I apologize for the failure of our controls.”

Federal campaign records show that since 2018, Mr. El-Hibri and his wife have donated more than $150,000 to groups affiliated with Mr. Scalise. The company’s political action committee has given about $1.4 million over the past 10 years to members of both parties.

Mr. El-Hibri expressed contrition on Wednesday. “The cross-contamination incident is unacceptable,” he said, “period.”

Mr. Kramer’s estimate of 100 million doses on hold added 30 million to the number of Johnson & Johnson doses that are effectively quarantined because of regulatory concerns about contamination. Federal officials had previously estimated that the equivalent of about 70 million doses — most of that destined for domestic use — could not be released, pending tests for purity.

confidential audits, previously reported by The Times, that cited repeated violations of manufacturing standards. A top federal manufacturing expert echoed those concerns in a June 2020 report, warning that Emergent lacked trained staff and adequate quality control.

“My teenage son’s room gives your facility a run for its money,” Representative Raja Krishnamoorthi, Democrat of Illinois, told Mr. Kramer.

Mr. Kramer initially testified that contamination of the Johnson & Johnson doses “was identified through our quality control procedures and checks and balances.” But under questioning, he acknowledged that a Johnson & Johnson lab in the Netherlands had picked up the problem. Johnson & Johnson hired Emergent to produce its vaccine and, at the insistence of the Biden administration, is now asserting greater control over the plant.

The federal government awarded Emergent a $628 million contract last year, mostly to reserve space at the Baltimore plant for vaccine production. Among other things, lawmakers are looking into whether the company leveraged its contacts with a top Trump administration official, Dr. Robert Kadlec, to win that contract and whether federal officials ignored known deficiencies in giving Emergent the work.

Mr. El-Hibri told lawmakers that the government and Johnson & Johnson were aware of the risks.

“Everyone went into this with their eyes wide open, that this is a facility that had never manufactured a licensed product before,” he said. While the Baltimore plant was “not in perfect condition — far from it,” he argued that the facility “had the highest level of state of readiness” among the plants the government had to choose from.

the coronavirus leaked from a laboratory in China, the “lies of the Communist Party of China,” mask mandates and the Biden administration’s call for a waiver of an international intellectual property agreement.

“You are a reputable company that has done yeoman’s work to protect this country in biodefense,” exclaimed Representative Mark E. Green, Republican of Tennessee, adding, “So you gave your folks a bonus for their incredible work.”

Emergent is skilled at working Washington. Its board is stocked with former government officials, and Senate lobbying disclosures show that the company has spent an average of $3 million a year on lobbying over the past decade. That is about the same as two pharmaceutical giants, AstraZeneca and Bristol Myers Squibb, whose annual revenues are at least 17 times higher.

Democrats pressed Mr. Kramer and Mr. El-Hibri about their contacts with Dr. Kadlec, who previously consulted for Emergent. Documents show that Emergent agreed to pay him $120,000 annually between 2012 and 2015 for his consulting work, and that he recommended that Emergent be given a “priority rating” so that the contract could be approved speedily. Dr. Kadlec has said he did not negotiate the deal but did sign off on it.

“Did you or any other Emergent executives speak to or socialize with Dr. Kadlec while these contracts were being issued?” Representative Nydia M. Velázquez, Democrat of New York, asked Mr. Kramer.

“Congresswoman,” he replied carefully, “I did not have any conversations with Dr. Kadlec about this.”

A Times investigation found that Emergent has exercised outsize influence over the Strategic National Stockpile, the nation’s emergency medical reserve; in some years, the company’s anthrax vaccine has accounted for as much as half the stockpile’s budget.

The investigation found that some federal officials felt the company was gouging taxpayers — an issue that also came up at Wednesday’s hearing when Representative Carolyn B. Maloney, Democrat of New York, demanded to know how much it cost to make the vaccine and what it sold for. Mr. El-Hibri promised to supply the information later.

Company executives also view their coronavirus work as one of the “prime drivers” of its 2020 revenues, according to a memorandum released on Wednesday by committee staff members. The executives were rewarded for what the company’s board called “exemplary overall 2020 corporate performance including significantly outperforming revenue and earnings targets.”

Mr. Kramer received a $1.2 million cash bonus in 2020, the records show, and also sold about $10 million worth of stock this year, in trades that he said were scheduled in advance and approved by the company. Three of the company’s executive vice presidents received bonuses ranging from $445,000 to $462,000 each.

Sean Kirk, the executive responsible for overseeing development and manufacturing operations at all of Emergent’s manufacturing sites, received a special bonus of $100,000 last year, in addition to his regular bonus of $320,611, in part for expanding the company’s contract manufacturing capability to address Covid-19, the documents show. Mr. Kirk is now on personal leave.

Emergent officials “appear to have wasted taxpayer dollars while lining their own pockets,” Ms. Maloney charged.

Mr. Krishnamoorthi asked Mr. Kramer if he would consider turning over his bonus to the American taxpayers.

“I will not make that commitment,” Mr. Kramer replied.

“I didn’t think so,” Mr. Krishnamoorthi shot back.

Rebecca R. Ruiz contributed reporting.

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Yitzhak Arad, Who Led Holocaust Study Center in Israel, Dies at 94

Yitzhak Arad, who as an orphaned teenage partisan fought the Germans and their collaborators during World War II, then went on to become an esteemed scholar of the Holocaust and the longtime chairman of the Yad Vashem remembrance and research center in Israel, died on May 6 in a hospital in Tel Aviv. He was 94.

Yad Vashem announced the death but did not specify the cause.

Mr. Arad was not even bar mitzvahed when the Germans invaded Poland and what is now part of Lithuania in 1939 and began rounding up and murdering Jews and forcing them into ghettos. His parents and 30 close family members would perish before the war ended in 1945.

But he survived, at first as a forced laborer — cleaning captured Soviet weapons in a munitions warehouse — and then, sensing what fate awaited, by smuggling weapons to partisans in the nearby forests and forming an underground movement in the ghetto. He, his sister and their underground associates eventually stole a revolver and escaped, meeting up with a brigade of Soviet partisans.

Acquiring the lifelong nickname Tolya (diminutive for Anatoly), he took part in ambushing German bases in what is now Belarus and setting up mines that blew up more than a dozen trains carrying German soldiers and supplies. Among his exploits was a battle with pro-German Lithuanian partisans in fields and forests covered in deep snow in the village of Girdan.

“We fought with them for a whole day, but by evening none of them remained alive,” he wrote in a 1979 memoir, “The Partisan: From the Valley of Death to Mt. Zion.” “The next day we counted over 250 Lithuanian dead.”

A Zionist since childhood, Mr. Arad made his way to Palestine, then a British mandate, aboard a ship, the Hannah Senesh, filled with immigrants.

He changed his Polish name, Icchak Rudnicki, to the Hebrew, Yitzhak Arad, and joined the fight for an autonomous Jewish land, serving with the Palmach, the elite fighting force that was eventually incorporated into the Israeli Army after Israel declared its independence in 1948. Assigned to an armor brigade, he rose to the rank of brigadier general, retiring in 1972.

He devoted himself to researching the history of the Holocaust, completing a doctorate at Tel Aviv University with a treatise on the destruction of the Jews of Vilna, Lithuania’s capital, now known as Vilnius. He was among the first scholars to study the Jewish partisans in the forests and the ghettos and the systematic murder of Jews by killing squads as the German Army moved deeper into Soviet territory.

“What gave Yitzhak Arad credibility was both the fact that he was a survivor and a historian,” said Abraham H. Foxman, former national director of the Anti-Defamation League. “He could discuss and teach about the Shoah from a very personal perspective.”

When another Palmach veteran, Yigal Allon, became a minister of education and culture, he asked Mr. Arad in 1972 to lead Yad Vashem — which means “a memorial and a name” and is taken from a verse in Isaiah.

A complex of museums, archives and memorial sculptures on a Jerusalem hill, Yad Vashem is considered the world’s leading repository of Holocaust documents, survivor interviews and other material. He served as its chairman of the directorate for more than two decades, until 1993.

“He never forgot,” said Avner Shalev, Mr. Arad’s successor as chairman. “He was part of the most important event for Jews in the 20th century — the Shoah — and he understood that it is an important mission in his life to research and commemorate that event.”

For most of his tenure at Yad Vashem, the Soviet Union and the Eastern European countries in its bloc cut off diplomatic relations with Israel. But Mr. Arad took pride in having established working relationships with archivists in those countries and securing hundreds of thousands documents that detailed the scope of the Holocaust.

Under his leadership, Yad Vashem added a number of monuments, including the Valley of the Communities, 2.5 acres of intersecting walls made of rough-hewed stone blocks engraved with the names of 5,000 Jewish communities, most of which were destroyed in the Holocaust.

He lectured at Tel Aviv University and wrote several books considered essential for scholars, including “The Holocaust in the Soviet Union,” which won a National Jewish Book Award in 2009, and “Belzec, Sobibor, Treblinka: the Operation Reinhard Death Camps,” which chronicled the murder of millions in those death camps.

In 2006, he was briefly the target of a war crimes investigation in Lithuania. A state prosecutor claimed there was evidence that a Soviet partisan band to which he belonged had killed 38 civilians, mostly women and children, in January 1944 in the village of Koniuchy.

Mr. Arad denied ever killing anyone in cold blood and pointed out that the village had been defended by a Lithuanian militia that collaborated with the Nazis. In the international outcry that ensued, historians noted that, at that point, Lithuania had never charged any non-Jews with war crimes despite the thousands of Lithuanians who had collaborated with the Nazis in the slaughter of 200,000 Jews. The case was dropped in 2008.

Mr. Arad was born on Nov. 11, 1926, in the ancient town of Swieciany, then within Poland but now part of Lithuania and known as Svencionys. (Another prominent resident was Mordecai Kaplan, the co-founder of Reconstructionist Judaism.) His father, Israel, was a synagogue cantor, and his mother, Chaya, a homemaker. The family moved to cosmopolitan Warsaw and sent Yitzhak to a Hebrew school. He belonged to a club that was part of the Zionist movement.

After the German blitzkrieg, his parents sent him and his older sister to live with his grandparents in his hometown, Swieciany, thinking they would be safe there. But the Germans occupied the town in June 1941, ordered all the Jews into a ghetto and soon began deportations to death camps and labor camps.

Mr. Arad’s wife, Michal, died in 2015. He is survived by two sons, Giora and Ruli, a daughter, Orit Lerer, 11 grandchildren and 13 great-grandchildren.

Mr. Arad remained active with Yad Vashem until his last weeks. Last year, he took part in a photography exhibition about Holocaust survivors and their lives after the war. When it was his turn to speak, he confronted the audience with a hard truth borne of his own ordeals.

“What happened in the past,” he said, “could potentially happen again, to any people, at any time.”

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Spy Agencies Seek New Afghan Allies as U.S. Withdraws

KABUL, Afghanistan — Western spy agencies are evaluating and courting regional leaders outside the Afghan government who might be able to provide intelligence about terrorist threats long after U.S. forces withdraw, according to current and former American, European and Afghan officials.

The effort represents a turning point in the war. In place of one of the largest multinational military training missions ever is now a hunt for informants and intelligence assets. Despite the diplomats who say the Afghan government and its security forces will be able stand on their own, the move signals that Western intelligence agencies are preparing for the possible — or evenly likely — collapse of the central government and an inevitable return to civil war.

Courting proxies in Afghanistan calls back to the 1980s and ’90s, when the country was controlled by the Soviets and then devolved into a factional conflict between regional leaders. The West frequently depended on opposing warlords for intelligence — and at times supported them financially through relationships at odds with the Afghan population. Such policies often left the United States, in particular, beholden to power brokers who brazenly committed human rights abuses.

Among the candidates being considered today for intelligence gathering is the son of Ahmad Shah Massoud, the famed Afghan fighter who led fighters against the Soviets in the 1980s and then against the Taliban as head of the Northern Alliance the following decade. The son — Ahmad Massoud, 32 — has spent the last few years trying to revive the work of his father by assembling a coalition of militias to defend Afghanistan’s north.

Afghans, American and European officials say there is no formal cooperation between Mr. Massoud and Western intelligence agencies, though some have held preliminary meetings. While there is broad agreement within the C.I.A. and France’s D.G.S.E. that he could provide intelligence, opinions diverge on whether Mr. Massoud, who is untested as a leader, would be able to command an effective resistance.

The appeal of building ties with Mr. Massoud and other regional power brokers is obvious: Western governments distrust the Taliban’s lukewarm commitments to keep terrorist groups out of the country in the years ahead and fear that the Afghan government might fracture if no peace settlement is reached. The Second Resistance, as Mr. Massoud now calls his armed uprising force, is a network that is opposed to the Taliban, Al Qaeda or any extremist group that rises in their shadow.

Top C.I.A. officials, including William J. Burns, the agency’s director, have acknowledged that they are looking for new ways to collect information in Afghanistan once American forces are withdrawn, and their ability to gather information on terrorist activity is diminished.

But Mr. Massoud’s organization is in its infancy, desperate for support, and legitimacy. It is backed by a dozen or so militia commanders who fought the Taliban and the Soviets in the past, and a few thousand fighters located in the north. Mr. Massoud says his ranks are filled by those slighted by the government and, much like the Taliban, he thinks that Afghanistan’s president, Ashraf Ghani, has overstayed his welcome.

“We are ready, even if it requires my own life,” Mr. Massoud said in an interview.

Even the symbols at Mr. Massoud’s events harken back to the civil war era: old Northern Alliance flags and the old national anthem.

But for all of Mr. Massoud’s bluster at recent rallies and ceremonies, the idea that the Northern Alliance could be rebranded and that its former leaders — some of whom have since become ambassadors, vice presidents and top military commanders in the Afghan government — would follow someone half their age and with little battlefield experience to war seems unrealistic at this point, security analysts have said.

Today, supporting any sort of insurgency or building a resistance movement poses real challenges, said Lisa Maddox, a former C.I.A. analyst who has done extensive work on Afghanistan.

“The concern is, what would the second resistance involve and what would our goals be?” she said. “I fear folks are suggesting a new proxy war in Afghanistan. I think that we’ve learned that we can’t win.”

Even considering an unproven militia leader for possible counterterrorism assurances as international forces leave undermines the last two decades of state-building, security analysts say, and practically turns the idea of an impending civil war into an expected reality by empowering anti-government forces even more. Such divisions are rife for exploitation by the Taliban.

The United States had a fraught relationship with the Northern Alliance, making it difficult to collect intelligence in the country. The French and British both backed the senior Massoud in the 1980s, while the Americans instead focused mostly on groups aligned with Pakistan’s intelligence services. The C.I.A. connections with Mr. Massoud and his group were limited until 1996, when the agency began providing logistical help in exchange for intelligence on Al Qaeda.

One of the reasons the C.I.A. kept Massoud at arm’s length was his track record of unreliability, drug trafficking and wartime atrocities during the early 1990s, when Mr. Massoud’s forces shelled Kabul and massacred civilians, as other warlords did.

Now, various allied governments and officials have different views of Mr. Massoud and the viability of his movement. The French, who were devoted supporters of his father, see his efforts as full of promise to mount a real resistance to Taliban control.

David Martinon, the French ambassador to Kabul, said he has watched Mr. Massoud closely over the last three years, and nominated him for a for a trip to Paris to meet with French leaders, including the president. “He is smart, passionate and a man of integrity who has committed himself to his country,” Mr. Martinon said.

Washington is more divided, and some government analysts do not think Mr. Massoud would be able to build an effective coalition.

Eighteen months ago, Lisa Curtis, then a National Security Council official, met with Mr. Massoud along with Zalmay Khalilzad, the top U.S. diplomat leading peace efforts with the Taliban. She described him as charismatic, and said he spoke convincingly about the importance of democratic values. “He is very clearheaded and talks about how important it is to preserve the progress of the last 20 years,” she said.

In Afghanistan, some are more skeptical of Mr. Massoud’s power to influence a resistance.

“Practical experience has shown that no one could be like his father,” said Lt. Gen. Mirza Mohammad Yarmand, a former deputy minister in the Interior Ministry. “His son lives in a different time and does not have the experience that matured his father.”

Others in the Afghan government see Mr. Massoud as a nuisance, someone who has the potential to create problems in the future for his own self-interests.

Even if there are varying opinions of his organizational prowess, there is broad agreement that Mr. Massoud can help function as the eyes and ears for the West — as his father did 20 years ago.

Mr. Massoud, who was educated at the Royal Military College at Sandhurst in Britain, returned to Afghanistan in 2016. He spent the next three years quietly building up support before he emerged more publicly in 2019 by holding rallies and mounting recruiting drives in the country’s north.

In recent months, Mr. Massoud’s rhetoric has grown tougher, lashing out at Mr. Ghani during a recent ceremony in Kabul, and his efforts to secure international support more aggressive. In addition to reaching out to the United States, Britain and France, Mr. Massoud has courted India, Iran and Russia, according to people familiar with his pursuits. Afghan intelligence documents suggest that Mr. Massoud is purchasing weapons — through an intermediary — from Russia.

But Europe and the United States see him less as a bulwark against an ascendant Taliban than as a potentially important monitor of Al Qaeda and the Islamic State. A generation ago, Mr. Massoud’s father was outspoken on the burgeoning terrorist threats in the country. And even if the son cannot command the same forces as his father, perhaps he will be able to offer similar warnings.

As a young diplomat, Mr. Martinon remembers hearing about the late Massoud warning to the world during his April 2001 visit to France.

“What he said was beware, beware,” Mr. Martinon recalled. “The Taliban are hosting Al Qaeda and they are preparing something.”

Julian E. Barnes reported from Washington. Najim Rahim and Fatima Faizi contributed reporting from Kabul.

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