Stars Added to Grande’s Manchester Concert

The Black Eyed Peas and Robbie Williams will join Ariana Grande, Justin Bieber and other stars at a charity concert Sunday in Manchester, England.

Live Nation said Thursday that girl group Little Mix had also been added to the show being held in response to the Manchester bombing that took place at Grande’s concert in the city last week. Twenty-two people died at the show.

Katy Perry, Coldplay, Miley Cyrus, Pharrell Williams, Take That and Niall Horan also will perform. The event, “One Love Manchester,” will take place at Emirates Old Trafford.

Tickets went on sale Thursday. Proceeds will go to an emergency fund set up by the city of Manchester and the British Red Cross.

Investors Pick Tesla’s Promise Over GM’s Steady Profits

When General Motors CEO Mary Barra introduced the Chevrolet Bolt at the CES gadget show last year, she took a shot at Tesla.

Buyers can be confident because Chevy has 3,000 U.S. dealers to service the new electric vehicle, she said. The implication was that Tesla, with just 69 service centers nationwide, can make no such promise.

 

The uncharacteristic insult from Barra was designed to highlight the difference between 108-year-old GM and Tesla, a disruptive teenager. It also acknowledged a budding rivalry that could help determine whether Detroit or Silicon Valley sets the course for the future of the auto industry.

The tale of the tape favors GM. It has made billions in profits since returning to the public markets in 2010. GM got the Bolt, a $36,000 car that goes 238 miles per charge, to market before Tesla’s Model 3. Tesla, the 14-year-old company led by flamboyant CEO Elon Musk, has never posted an annual profit.

 

Yet, as both CEOs face shareholders for annual meetings Tuesday, it is Barra who must explain to skeptical investors why GM’s future is as bright as Tesla’s.

 

GM’s stock is trading around the $33 price of its initial public offering seven years ago. During that time, Tesla shares have soared more than tenfold to $335. Wall Street now values Tesla at about $55 billion, compared to around $50 billion for GM.

 

Despite efforts to paint themselves as technology companies, automakers can’t shake their giant, capital-intensive global manufacturing operations. The huge investment needed to build vehicles yields low profit margins compared with tech companies that make software or cell phones, says Michael Ramsey, an analyst with Gartner. GM’s net profit margin in 2016 was 5.7 percent. By comparison, Alphabet Inc., parent of Google, had a 22 percent margin.

 

Although it’s an automaker, Tesla started in the tech bucket and remains there in the eyes of investors and buyers, Ramsey says.

 

Tesla’s electric cars are the envy of the industry, and its semi-autonomous technology is among the most advanced on the road. Musk says Tesla’s California assembly plant – which used to be GM’s – will soon be among the most efficient in the world. And it’s branching into areas with potential for bigger returns, including solar panels, energy storage and trucking.

Tesla is absurdly overvalued if based on the past, but that’s irrelevant. A stock price represents risk-adjusted future cash flows,” Musk tweeted in April.

 

Still, Musk can’t risk any missteps as Tesla pivots from a niche manufacturer of 84,000 high-priced cars per year. The Model 3 sedan, Tesla’s first mainstream car, is due out later this year, but previous launches have been plagued with delays. Tesla has yet to prove it can build high-volume vehicles with quality and reliability, as GM does. Musk aims to make 500,000 vehicles per year in 2018; GM made more than 10 million cars and trucks last year.

GM, too, is stretching into new areas. Its Maven car-sharing service has 35,000 members in 17 North American cities, and it’s providing cars for ride-hailing services. GM is developing autonomous cars with Cruise Automation, a software company purchased last year. Its SuperCruise semi-autonomous driving system, due out this year, is designed to be safer than Tesla’s.

 

And GM isn’t the only automaker with a stagnant stock price. Of the seven best-selling carmakers in the U.S., only Toyota and Fiat Chrysler have seen significant growth in seven years. Ford, Honda and Hyundai all have lost value.

 

“Investors and the financial markets are much more interested in investing in the potential of what might be huge than in the reality of what’s already profitable and likely to remain so for years to come,” says Sam Abuelsamid, a senior analyst with Navigant Research.

 

Abuelsamid says GM could better trumpet its technology achievements. For instance, it scarcely markets the Bolt. By contrast, Musk builds hype with nightclub-like events for Tesla owners and Twitter banter with 8.8 million followers.

 

“The only way you can get people to perceive you in the same light as a company like Tesla is to demonstrate it,” Abuelsamid says.

 

Musk is crucial to Tesla’s success. The risk-taking billionaire founded PayPal and rocket company SpaceX before taking over Tesla. He espouses big ideas like Hyperloop high-speed transportation and colonizing Mars.

 

Barra, on the other hand, is a methodical engineer who rarely strays from script. She has only 29,500 Twitter followers. She’s a GM lifer who earned a company-paid MBA from Stanford; Musk left a Stanford graduate physics program after just two days to form a publishing startup.

 

“Mary is like a normal high-level performing executive,” Ramsey says. “Elon Musk is like an almost unrivaled superstar, even in comparison to Silicon Valley executives.”

 

Still, the big changes in the auto industry are in the early stages. Electric vehicles make up less than 1 percent of global auto sales and fully self-driving cars are years away. The economy can falter and company fortunes can shift. Already this year, sales in the U.S. and China are slowing, and GM pulled out of the European and Indian markets because they weren’t profitable.

 

GM knows the ups and downs of auto sales, but Tesla will have to learn to manage them. If the Model 3 is late and Tesla sales fall, its stock price could drop and reduce Tesla’s access to cheap capital, Ramsey says.

 

“I don’t think they’re completely immune to economic cycles,” he says. “That will be when we really know if Tesla can maintain this out-of-whack share value with their fundamentals.”

It’s a Girl? Venus Williams Opens up on Serena’s Baby

Venus Williams may have revealed the gender of sister Serena Williams’ baby during a post-match interview at the French Open this week.

When asked by Eurosport what the baby will call her, Venus replied, “she’s going to call me favorite aunt.” She added that she and her other sisters are pushing for the child to be named after them.

 

Serena Williams announced her pregnancy with Reddit co-founder Alexis Ohanian in April, but didn’t hint at the baby’s gender.

 

Venus Williams defeated Kurumi Nara, with Serena looking on from the stands Wednesday. She takes on Elise Mertens in the third round of the French Open on Friday.

 

 

US Army Ramps Up Testing of Autonomous Trucks

The United States Army is taking another step toward developing autonomous trucks this month when it tests them on a Michigan highway.

The test, the first on a public road, will feature only flatbed trucks, but the technology could eventually be used in other military vehicles and could help protect troops on the battlefield.

As with the many tests of driverless cars, the trucks will have sensors to stay on course and communicate with one another. Also, like current driverless car efforts, the Army’s test will still see a human behind the wheel just in case something goes wrong.

“In order for automated vehicles to work and work correctly and work safely, that automated vehicle needs to talk very fast, sending data back and forth, first to the vehicles around it,” said Doug Halleaux, public affairs officer for the U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC) in an interview with the Times Herald newspaper.

One potential hurdle the test will have to overcome is crossing a steel girder bridge called the Blue Water Bridge. Researchers say the steel could present a challenge to the radar readings, possibly confusing the autonomous system.

The push for autonomous military vehicles stems from the number of deadly attacks on U.S. military convoys in Iraq and Afghanistan.

The Michigan highway will remain open to normal traffic during the testing.

EU: Social Media Firms Have Increased Removals of Online Hate Speech

Social media companies like Facebook, Twitter and Google’s YouTube have stepped up both the speed and number of removals of hate speech on their platforms in response to pressure from the European Union to do more to tackle the issue, according to the results of an EU evaluation.

Facebook won particular praise for reviewing most complaints within a 24-hour target timeframe set down in a code of conduct agreed in December by the European Commission,

Facebook, Microsoft, Twitter and YouTube

Calling the results “encouraging” for the Commission’s push for self-regulation, Justice Commissioner Vera Jourova said the proportion of offending items taken down had doubled and action was being taken more quickly than when the EU checked six months ago.

“This … shows that a self-regulatory approach can work, if all actors do their part. At the same time, companies … need to make further progress to deliver on all the commitments,” Jourova said in a statement, adding that firms should provide more feedback to people who brought abuses to their attention.

Facebook scored highly on this, Twitter and YouTube less so.

The voluntary code of conduct obliges firms to take action in Europe within 24 hours, following rising concerns about the proliferation of racist and xenophobic content on social media triggered by the refugee crisis and attacks in Western Europe.

This included removing or disabling access to the content if necessary, better cooperation with civil society organizations and the promotion of “counter-narratives” to hate speech.

Facebook assessed notifications of hateful content in less than 24 hours in 58 percent of cases, up from 50 percent in December, according to the report.

Twitter also sped up its dealing with notifications, reviewing 39 percent of them in less than 24 hours, as opposed to 23.5 percent in December, when the Commission first reviewed the companies’ progress and warned them they were being too slow.

YouTube, on the other hand, slowed down, reviewing 42.6 percent of notifications in less than 24 hours, down from 60.8 percent in December, the results showed.

“IT companies have all been improving time and response to notifications on manifest illegal hate speech,” Jourova said at a meeting of the EU High Level Group on combating racism, xenophobia and other forms of intolerance on Wednesday.

“There are differences among the companies … but we can objectively say that all have improved.”

All the companies significantly increased the number of removals. Overall, content was removed in 59.2 percent of cases, more than double the rate in December which was 28.2 percent.

The proliferation of hate speech on social media has increased pressure on the companies to remove the content swiftly as they face the prospect of legislation at both EU and national level.

Last week EU ministers approved plans to force social networks to take measures to block videos with hateful content while the German government approved a plan in April to fine companies up to 50 million euros if they fail to remove hateful postings quickly.

The most common ground of hate speech the Commission identified was xenophobia, including expressions of hatred against migrants and refugees, together with anti-Muslim hatred, followed by ethnic origin.

The spread of fake news and racist content has taken on more urgency in Germany after the arrival of about a million migrants over the last two years.

As Europe Talks Tough on Climate, Data Show Emissions Rose

A new report showed greenhouse gas emissions in the European Union rose in 2015, the first increase since 2010, even as European officials on Thursday urged the United States to remain part of a global climate pact.

Emissions grew by 0.5 percent compared with 2014, mainly due to increases from transportation and a colder winter, the European Environment Agency said.

 

Greenhouse gases are a major contributor to man-made climate change and most countries around the world have pledged to reduce emissions under the 2015 Paris Agreement.

 

The report was released as the EU is trying to emphasize its commitment to combating global warming, with senior European officials appealing to President Donald Trump not to quit the Paris accord. Trump was scheduled to announce his decision Thursday afternoon in Washington.

 

“Higher emissions were caused mainly by increasing road transport, both passenger and freight, and slightly colder winter conditions in Europe, compared to 2014, leading to higher demand for heating,” the European Environment Agency said.

 

It noted that improvements in fuel efficiency failed to offset the growth in traffic.

 

“Road transport emissions — about 20 percent of total EU greenhouse gas emissions — increased for the second year in a row in 2015, by 1.6 percent,” the agency said.

 

It noted, however, that the EU has achieved a long-term reduction in greenhouse gas emissions from 1990 to 2015 of 22.1 percent despite economic growth of 50 percent.

 

This decoupling of economic growth from emissions during the 25-year period occurred due to a mix of green policies, such as encouraging the use of renewable energy and improving fuel efficiency, and changes in European economies that have seen a shift away from heavily polluting industries toward service jobs.

 

Milder winters have also contributed to a decline in heating fuel use, the agency said.

AP-WF-06-01-17 1407GMT

 

Microsoft Cofounder Unveils Huge Rocket Launching Plane

Microsoft cofounder Paul Allen’s entry into the commercial space race has been revealed.

Allen posted a picture of a plane nicknamed the “Roc” on Twitter, showing an extremely unusual and enormous plane that he hopes will eventually launch rockets into space.

The Roc has six engines, two fuselages, 28 wheels and is built by Allen’s company Stratolaunch Systems.

The plane has a wingspan of more than 117 meters, the longest ever built, and weighs more than 227,000 kilograms. To put the wingspan into perspective, it is longer than an official soccer pitch, which measure between 100 and 110 meters.

The aircraft is 72.5 meters from nose to tail and stands 15.2 meters tall from the ground to the top of the tail.

In his tweet, Allen said the plane was being taken out of its hangar for fuel testing. Next will come engine testing and taxi testing.

“Over the coming weeks and months, we’ll be actively conducting ground and flightline testing at the Mojave Air and Space Port,” Stratolaunch Systems CEO Jean Floyd said. “This is a first-of-its-kind aircraft, so we’re going to be diligent throughout testing and continue to prioritize the safety of our pilots, crew and staff.”

The plane’s maximum takeoff weight can be up to 589,000 kilograms. The company says the plane will first launch an Orbital ATK Pegasus XL rocket, but that it will be capable of launching up to three rockets in one flight.

Police Release Tiger Woods’ DUI Arrest Video

His speech slow and slurred, Tiger Woods couldn’t follow simple instructions or keep his balance during a dazed and disoriented encounter with police before he was arrested on suspicion of driving under the influence.

 

The video images came from dash-cam footage that Jupiter police released Wednesday night, and they show Woods with little capacity to stand still without swaying, repeat simple instruction or put one foot in front of the other.

 

The footage came from his arrest Monday in the dark of early morning when Jupiter police noticed his Mercedes parked on the side of a six-lane road, part of it in the road and part of it in the bicycle lane.

 

Police found the Woods sound asleep behind the wheel, according to an incident report. The engine was running, the brake lights were on and the right turn signal was blinking. Police also released photos of his car that showed both tires flat with minor damage around the bumpers.

 

When the officer asks Woods where he had been, the 14-time major champion says, “LA.” He says he was headed down to Orange County.

 

The 1 hour, 39-minute video starts with the Jupiter police approaching Woods’ car and ends with the cruiser pulling into the Palm Beach County jail, with Woods in handcuffs behind his back and sitting in the back seat.

 

Woods told the officers he had not been drinking, and two breath tests at the jail registered a 0.0. Woods issued a statement nearly 10 hours after he was released from jail on Monday that alcohol was not involved.

 

“What happened was an unexpected reaction to prescribed medications,” Woods said in his statement. “I didn’t realize the mix of medications had affected me so strongly.”

 

He told police he was taking prescription medicine. When asked what kind, his answer was redacted from the video tape. The arrest affidavit listed four medications, including Vicodin, that Woods reported taking.

 

Woods is to be arraigned July 5 in Palm Beach County court.

 

The video brings to life the troubling images contained in an incident report from the four Jupiter police officers who were at the scene.

 

His speech is slurred from his first words. When the officer points out that Woods shoe is untied, Woods places his right foot on the front of the police car and starts to fiddle with the laces.

 

“It’s your other shoe that’s untied,” the officer says as Woods unties the laces.

 

“Now that one is, too,” the officer adds.

 

When Woods is unable to tie the left shoe, the officer tells him he can take them off. Woods then tells the officer he doesn’t remember what happened or being asleep in his car when police approached.

 

The field sobriety test was a failure from the start.

 

Woods struggled to simply put his feet together. When he did, he leaned forward after losing his balance.

 

He couldn’t follow a red light the officer moved from side to side. When asked to walk a straight line by going heel-to-toe nine times, Woods staggered from the starting position. He never connected heel-to-toe. He often strayed outside the white line and occasionally lost his balance.

 

Woods couldn’t raise one leg 6 inches off the round.

 

On his third try of understanding the alphabet instructions, he made it from A to Z.

 

The next instruction from the officer was to place his hands behind his back as they cuffed him and told him he was being arrested.

 

Woods, who had his fourth back surgery in three years on April 20, has not played since February 2 in Dubai when he withdrew after the first round because of back spasms. The surgery means he is out for the rest of the PGA Tour season.

Ohio Sues Drug Makers it Accuses of Fueling Opioid Crisis

The U.S. state of Ohio filed a lawsuit Wednesday against five prescription drug manufacturers, saying they used deceptive practices that fueled an opioid addiction epidemic.

“These drug manufacturers led prescribers to believe that opioids were not addictive, that addiction was an easy thing to overcome, or that addiction could actually be treated by taking even more opioids,” Ohio Attorney General Mike DeWine said. “They knew they were wrong, but they did it anyway.”

Five companies

The state wants the companies to stop misrepresenting the drugs, to pay damages for the amount of money the state spent on excessive opioid prescriptions and resulting addiction treatments for patients, and to reimburse patients as well.

The lawsuit names Purdue Pharma, Endo Health Solutions, Allergan, Teva Pharmaceutical Industries and its subsidiary Cephalon, and Johnson & Johnson with its subsidiary Janssen Pharmaceuticals.

A Janssen statement called the lawsuit legally and factually unfounded and said the company has acted appropriately and responsibly. Purdue said it shares DeWine’s concerns about the opioid crisis and wants to work together on a solution.

The U.S. Centers for Disease Control and Prevention says opioids are most commonly given for moderate-to-severe pain after surgery or injury, but that in recent years there has been an increase in their prescription for chronic pain “despite serious risks and the lack of evidence about their long-term effectiveness.”

Tens of thousands died

Opioids, including prescription varieties, and heroin killed a record 33,000 people in the United States in 2015, according to the CDC.

Ohio’s lawsuit says 2.3 million people, or nearly 20 percent of its population, were prescribed an opioid drug last year, and that the drugs are the main source of unintentional overdose deaths in the state. It called the opioid crisis in the state “catastrophic.”

“Because they know prescribing doctors and other health care providers rely on drug companies’ statements in making treatment decisions, drug companies must tell the truth when marketing their drugs and ensure that their marketing claims are supported by science and medical evidence. Defendants broke these simple rules and helped unleash a health care crisis that has had far-reaching financial, social and deadly consequences in the state of Ohio.”

Crisis across US

The effects of the opioid crisis have been felt across the United States, and Ohio is not the first to sue drug companies. Kentucky settled a lawsuit with Purdue in 2015, while a group of 27 states did so with Purdue as well in 2007. Oregon also reached a settlement with another drug maker, Insys, in 2015.

U.S. President Donald Trump pledged during his campaign last year that he would fight the opioid epidemic, which has ravaged many of the rural areas and small towns where Trump received strong support.

The president has created a drug addiction task force, but critics of the budget proposal he unveiled last month said his planned cuts in government spending would hurt the opioid epidemic fight.

Trump’s spending plan would slash funding for the White House Office of National Drug Control Policy by 95 percent, eliminating its drug-free communities and high-intensity drug trafficking programs that each have bipartisan congressional support.

Cargo Ship Soon Headed to Space Station Is Being Recycled

SpaceX is taking recycling to a whole new realm — all the way to orbit.

On this week’s supply run to the International Space Station, SpaceX will launch a Dragon capsule that’s already traveled there. The milestone comes just two months after the launch of its first reused rocket booster for a satellite.

“This whole notion of reuse is something that’s very, very important to the entire space industry,” NASA’s space station program manager Kirk Shireman said at a news conference Wednesday.

While the concept is not new — the space shuttles, for instance, flew multiple times in orbit — it’s important for saving money as well as technical reasons, he noted.

New shield, parachutes

This particular Dragon flew to the station in 2014. SpaceX refurbished it for Thursday evening’s planned launch, providing a new heat shield and fresh parachutes for re-entry at mission’s end. There were so many X-rays and inspections that savings, if any, were minimal this time, said Hans Koenigsmann, vice president of flight reliability for SpaceX.

For this trip, the Dragon is packed with 6,000 pounds of station cargo, including mice and flies for medical research.

While the Falcon booster to be used this time is new, SpaceX will attempt to land it at Cape Canaveral following liftoff so it, too, can be reused. So far, first-stage boosters have flown back and landed vertically four times on the designated X at the Air Force station; even more touchdowns have occurred on ocean platforms, all part of an effort to save time and money.

The private SpaceX and NASA are discussing the possibility of flying a reused booster on an upcoming delivery mission.

Dragons for astronauts

Koenigsmann told reporters more and more reused capsules will carry cargo to the space station, each possibly flying three times. Dragon capsules are being developed to carry astronauts to the space station as early as next year; it’s too soon to say whether those, too, will be recycled, he said.

Wednesday marked the fifth anniversary of the return of the first Dragon capsule to visit the space station. This will be the 12th Dragon visit overall and the 11th under NASA contract. The Dragon is the only unmanned supply ship that returns to Earth; the others are filled with trash and burn up on re-entry.

And by SpaceX’s count, this will be the 100th launch from NASA’s historic Launch Complex 39-A at Kennedy Space Center. It’s the same spot from which men flew to the moon and shuttles soared until their retirement in 2011. SpaceX is leasing the pad from NASA.

Fairly good weather is forecast for the 5:55 p.m. EDT liftoff.

Two of the space station’s five residents, meanwhile, are scheduled to return to Earth on Friday via a Russian Soyuz capsule. A Russian and Frenchman will be headed home, leaving two Americans and one Russian in orbit.

Journal Letter Written in 1980 Helped Fuel Opioid Epidemic

Nearly 40 years ago, a respected doctor wrote a letter to the New England Journal of Medicine with some very good news: Out of nearly 40,000 patients given powerful pain drugs in a Boston hospital, only four addictions were documented.

Doctors had been wary of opioids, fearing patients would get hooked. Reassured by the letter, which called addiction “rare” in those with no history of it, they pulled out their prescription pads and spread the good news in their own published reports.

And that is how a one-paragraph letter with no supporting information helped seed a nationwide epidemic of misuse of drugs like Vicodin and OxyContin by convincing doctors that opioids were safer than we now know them to be.

On Wednesday, the journal published an editor’s note about the 1980 letter and an analysis from Canadian researchers of how often it has been cited — more than 600 times, often inaccurately. Most used it as evidence that addiction was rare, and most did not say it concerned only hospitalized patients, not outpatient or chronic pain situations such as bad backs and severe arthritis that opioids came to be used for.

‘Key bit of literature’

“This pain population with no abuse history is literally at no risk for addiction,” one citation said. “There have been studies suggesting that addiction rarely evolves in the setting of painful conditions,” said another.

“It’s difficult to overstate the role of this letter,” said Dr. David Juurlink of the University of Toronto, who led the analysis. “It was the key bit of literature that helped the opiate manufacturers convince front-line doctors that addiction is not a concern.”

Hospital databases were so limited in 1980 that researchers can’t be confident there weren’t more problems, or cases discovered after patients were discharged, Juurlink said.

The letter was written by Dr. Hershel Jick, a drug specialist at Boston University Medical Center, and a graduate student.

“I’m essentially mortified that that letter to the editor was used as an excuse to do what these drug companies did,” Jick told The Associated Press in an interview Wednesday. “They used this letter to spread the word that these drugs were not very addictive.”

Jick said his letter referred only to people getting opioids in the hospital for a short period of time and had no bearing on long-term outpatient use. He also said he testified as a government witness in a lawsuit years ago over the marketing of pain drugs.

Use grew in the 1990s when drugs like OxyContin came on the market, and more people using opioids for chronic pain developed dependence.

New note

The new editor’s note in the journal says: “For reasons of public health, readers should be aware that this letter has been ‘heavily and uncritically cited’ as evidence that addiction is rare with opioid therapy.”

The journal’s top editor, Dr. Jeffrey Drazen, said, “People have used the letter to suggest that you’re not going to get addicted to opioids if you get them in a hospital setting. We know that not to be true.”

The journal also published a report from Dr. Francis Collins, director of the National Institutes of Health, and Dr. Nora Volkow, head of the National Institute on Drug Abuse, pledging to work to develop new ways to reverse and prevent overdoses, to treat addiction, and to find novel, nonaddictive drugs for chronic pain.

In the next six weeks, NIH will hold three workshops with drug company leaders to identify next steps, Collins said. The goal is to cut in half the usual amount of time to develop new treatments — a target borrowed from the Cancer Moonshot project launched by former Vice President Joe Biden to make a decade’s worth of progress toward cures in half that time.

Other partnerships

Details have not been worked out, but it could resemble similar partnerships on Alzheimer’s, diabetes and some other diseases where scientists from government and industry determine pressing needs, develop a work plan and split the cost, Collins said.

“Industry’s interest in this has been muted until recently,” Collins said. Now, “they feel the responsibility and the opportunity to take part in this and they’re not going to stand back and watch.”

With the Food and Drug Administration wanting to speed work on new pain drugs, “the stars are aligning,” Collins said. “I think we can make real progress now.”

Stalled Brazilian Odebrecht Projects Decay in Venezuela

In the hot and humid town of Caicara, in the heart of Venezuela, some 20 piers jutting out of the vast Orinoco river gather mildew and rust.

Brazilian construction company Odebrecht was meant to build an 11-km (seven-mile) bridge in the town — the longest in the South American country — in 2011, but the project ground to a halt a year ago.

Now, a handful of workers do basic maintenance work.

The bridge, meant to link the towns of Caicara and Cabruta, is just one of several abandoned Odebrecht projects deteriorating under the Caribbean sun and dogged by corruption allegations.

Odebrecht has left at least 23 multimillion dollar projects unfinished or stalled in Venezuela, according to company and government documents, interviews with over two dozens workers, and site visits.

Late last year, Latin America’s largest engineering company admitted to paying hundreds of millions of dollars of bribes in 12 mostly Latin American countries in exchange for contracts.

The unfolding scandal has already led to the downfall of high-ranking officials across the region.

On Thursday, Brazil’s attorney general will share information from plea bargain deals by dozens of Odebrecht executives with relevant countries.

According to a leniency agreement with U.S. authorities, which was made public in December, Odebrecht and its representatives paid some $98 million in bribes to officials and intermediaries in Venezuela between 2006 and 2015 — the highest amount outside Brazil.

Cash-strapped

Yet many of the company’s projects in Venezuela ground to a halt even before the Odebrecht scandal exploded, likely due to lack of payment from the cash-strapped socialist government, sources said.

“All the state’s projects are paralyzed, not only Odebrecht’s,” said Wilmer Nolasco, a lawyer and president of Venezuela’s largest construction union, speaking in an office in Caracas adorned with a statue of late leftist leader Hugo Chavez.

Odebrecht’s stalled projects include the Caicara project, one other huge bridge, subway lines, a train to link dormitory towns with Caracas, hillside cable cars, an agricultural project, an overhaul of the country’s main airport, and a hydroelectric dam.

Nolasco, whose powerful SUTIC union works on several of Odebrecht’s projects, says that in some cases the Salvador, Brazil-based company stopped receiving payments two years ago and subsequently pulled the plug on building.

“The state hasn’t paid Odebrecht,” said Nolasco, citing meetings in which Odebrecht asked the government to pay. The Venezuelan unit of Odebrecht said in a statement sent to Reuters that the completion times for its projects are “within what is normal for contracts of that nature.”

“The flow of payments responds to the availability of resources assigned annually for the execution of each project,” it said in the statement. “The works currently being executed have timeframes compatible with those budgets.”

Venezuela’s public works and communications ministries did not respond to requests for comment.

Odebrecht has not formally left Venezuela, nor has the government of Nicolas Maduro canceled its contracts.

But Odebrecht’s projects are under the protection of the National Guard and other government personnel, according to a Reuters witness, and company logos have been erased from the gates of their camps. Maduro in February vowed his administration would finish the projects, though none of them have been reactivated.

As a consequence, some 200,000 jobs have been lost, according to union estimates. Some of the works will also have to be redone partially because of flooding or because the cement has oxidized, project engineers told Reuters.

“This is basically lost,” said one worker, pointing to a pile of materials for the construction of line 2 of the Los Teques subway near Caracas, already six years behind schedule.

Some 20 workers scour the tunnels to drain water that threatens to flood them.

Risky friendship

Odebrecht arrived in Venezuela in 1992 to build a mall in the oil hub of Maracaibo near the Colombian border.

It grew steadily but it was not until 2003, with the election of Luiz Inacio Lula da Silva as president of Brazil, that it began a string of mega-projects in Venezuela.

After 2003, Odebrecht won 32 projects worth some $40 billion in Venezuela, according to official numbers. Brazilian rivals Queiroz Galvao, Camargo Correa and Andrade Gutierrez received a total of eight.

Even when Ecuador’s former leftist president Rafael Correa kicked out Odebrecht in 2008, accusing it of a scam after a hydroelectric dam it built had severe problems, Chavez publicly defended the company.

“Odebrecht is a friendly company and in Venezuela it’s behaved itself extraordinarily well,” Chavez said at the time.

While Odebrecht largely completed its works on time until 2007, it then began to delay completion dates, according to government and company records and interviews with engineers that worked on the projects and with Odebrecht personnel.

Anti-corruption campaigners accuse Odebrecht and complicit state officials of prioritizing personal gain.

“Seeing the quantity of unfinished works and the privileges this company was given, we suppose it was better to receive bribes than to see the works through,” said Mercedes de Freitas, local head of anti-corruption campaign group Transparency International.

The majority of projects also ended up costing several times their initial price, according to documents on the projects seen by Reuters and speeches by officials.

One part of the Caracas hillside gondola system cost $262 million, five times that of a similar project in the Colombian city of Medellin, though the Venezuelan line is shorter and flatter.

The construction of a bridge over Lake Maracaibo in the west of the country is only 17 percent completed but has cost three times the original budget, according to the documents and speeches.

Opposition investigates

Odebrecht and its petrochemical unit Braskem in late December agreed to pay at least $3.5 billion, the largest penalty ever in a foreign bribery case, after pleading guilty in a U.S. federal court in Brooklyn.

In mid-February, Venezuela’s state prosecutor’s office raided the headquarters of Odebrecht in Caracas. It has not given details of what it found.

The opposition-led National Assembly in February began an investigation into possible embezzlement of some $16 billion in negotiations between the Venezuelan government and Odebrecht, according to preliminary inquiries.

The report says six Odebrecht projects were subject to overpricing, commissions, bribes, and poor planning, and also ran over budget. That was just the tip of the iceberg, the head of the congressional comptroller’s commission, Juan Guaido, told Reuters.

“Venezuelans paid seven times more to contract Odebrecht,” said Guaido, basing his estimate on preliminary investigations by his team.

Guaido said the majority of Odebrecht’s 32 projects were directly assigned, via binational agreements, instead of public tenders as in other Latin American countries.