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Archive for the ‘Corruption’ Category

Louisiana’s Inspector General Stephen Street recently accused LouisianaVoice of not letting facts get in the way of a good story.

He should know.

It was Street’s Office of Inspector General (OIG) that went after Corey Delahoussaye for overbilling for hurricane cleanup in Livingston Parish at the same time Delahoussaye was working as an informant for the FBI to assist in challenging more than $50 million in charges submitted to FEMA by Livingston Parish.

It was Street’s OIG that raided Delahoussaye’s home with the assistance of the East Baton Rouge Sheriff’s Office in the early–morning hours on July 25, 2013, even though nowhere in the statute establishing OIG is the agency authorized to obtain search warrants. The raid was conducted at 6 am with multiple agents bearing firearms in a home that was only occupied by Mr. and Ms. Delahoussaye and their two young children.

It was OIG that served subpoenas on Delahoussaye’s fitness club and his doctor seeking personal and medical records even though state law requires a judge to issue a written reason for the subpoena. No such written reason was ever obtained.

But never let law get in the way of a good raid.

The Office of the State Inspector General was established by the Louisiana Legislature. Its purpose is set forth in LA R.S. 49:220.1-220.26. Section 220.21 reads in part:

  • The prevention and detection of waste, inefficiencies, mismanagement, misconduct, abuse, fraud, and corruption in all departments, offices, agencies, boards, commissions, task forces, authorities, and divisions of the executive branch of state government as specifically provided in Title 36 of the Louisiana Revised Statutes of 1950, all hereinafter referred to in this part collectively as “covered agencies” and individually “covered agency” is an important responsibility of the state.”
  • In the view of the responsibility of the state, it is the purpose of this part to establish an independent office of the state Inspector General in the office of the Governor to examine and investigate the management and affairs of the covered agencies.” (Emphasis added)

Livingston Parish, with whom Delahoussaye was contracted, is not part of the executive branch of state government. Accordingly, OIG had no authority to carry out a raid on Delahoussaye. None. Nada. Zilch.

The obvious solution was to claim he was contracted to the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP). Except he was not and never had been.

Never let facts get in the way of a good witch hunt.

Of course Street was not alone in this exercise of the absurd. Scott Perrilloux, District Attorney for the 21st Judicial District which includes Livingston Parish, took his “evidence” to a grand jury which promptly refused to indict Delahoussaye. Undeterred, Perrilloux simply proceed to indict Delahoussaye on a bill of information. After all, there were $56 million in bogus charges for Livingston Parish cleanup uncovered by…Delahoussaye. But they thought they had Delahoussaye dead to rights for a couple of thousand dollars in unwarranted charges they said, incorrectly, it turns out, that he billed for.

Instead, all the charges were thrown out and now Delahoussaye is out for his pound of flesh as payback for the hell Street and Perrilloux put him through—as he should be. He has filed a DEFAMATION-LAWSUIT against OIG and now Street, after spending untold thousands of dollars pursuing criminal charges and now that the is suddenly a defendant in an unexpected turn of events, suddenly is thinking about the horrific costs to be incurred by the state in the discovery phase of Delahoussaye’s lawsuit. SAVING-TAXPAYER-DOLLARS

“For the sake of conserving judicial resources and preventing the waste of valuable taxpayer dollars, the OIG requests a stay of this proceeding, including a stay in discovery,” read OIG’s motion to stay proceedings pending a First Circuit Court of Appeal decision on OIG’s writ application. (Emphasis added)

Okay, so Street wants to talk about “wasted taxpayer dollars?” How about the sheer volume and man-hours for lodging an almost-guaranteed-to-fail appeal? Here’s the link for the OIG’s APPEAL: It rambles on for 169 pages on something that is almost certain to fail based on an earlier ruling by the First Circuit wherein the court said that if a state agency lacks jurisdiction to investigate (as 21st JDC Judge Brenda Ricks made it clear in her rulings), then a cause of action can survive a motion for Preemptive Exception based on “invasion of privacy.”

So, bottom line, we have the Office of Inspector General:

  • Serving subpoenas absent the required judge’s written reasons;
  • Carrying out an early morning raid on the basis of a search warrant even though the law creating OIG never gives search warrant power to the agency, and
  • Taking a leadership role in carrying out the raid even though that same law relegates OIG to a “back seat” role once it determines it has credible information of criminal activity.

Finally, that “credible information” is the belief that Delahoussaye was contracted by GOHSEP when in fact, his contract was with Livingston Parish.

But never let facts…..

And only after all that did it occurred to Street that he should suddenly now be concerned with conserving judicial resources and preventing the waste of valuable taxpayer dollars.

Lest we forget, this is the same agency that went after former State Alcohol and Tobacco Control Director Murphy Painter when Painter got crossways of Bobby Jindal and one of his biggest campaign contributors, Saints owner Tom Benson.

And we know how that turned out: The state had to end up paying Painter’s legal costs of $474,000 after Painter was exonerated in federal court.

 

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Bobby Jindal, the Rhode Scholar who rode into town on the crest of a billion-dollar surplus nine years ago this month, rode out 12 months ago leaving the state wallowing in red ink and now it is learned that he inflicted even more fiscal carnage on his way out the door.

And knowing the way in which he and his final Commissioner of Administration, Kristy Nichols, juggled the books, it’s not at all unreasonable to think that Jindal’s final example of fiscal irresponsibility may well have been an intentional act of political chicanery carried out to buy him time so that his successor would be left with the mess to clean up. (Of course, Kristy didn’t become commissioner until Paul Rainwater left in 2012, but that does not change the fact that a lot of dollars were moved around—swept—before and after she was promoted.)

Hey! It’s not that far-fetched. He did it with the Office of Group Benefits. He did it with higher education. He did it with the LSU Hospital System. Boy, did he do it with the hospital system—with a contract containing 50 blank pages, yet!

By the time Jindal left office, virtually the only state agency left with a shred of credibility and integrity was the office of the Legislative Auditor—and that’s largely because the office has complete autonomy and is independent from outside political pressure, particularly from the governor’s office.

And now, coincidentally, it is that same Legislative Auditor who has issued a damning AUDIT REPORT that reveals a major SNAFU (if that’s truly what it was) in which the Jindal administration “misclassified” a $34.6 million default payment made by Northrop Grumman Ship Systems made in 2011.

The payment was made to Louisiana Economic Development after the shipyard failed to meet required hiring quotas but instead of using the money to pay off equipment the state had financed for Northrop Grumman, the audit says the Division of Administration “swept” the money when it was balancing the budget. As a result, the state has already paid some $2 million in interest and administrative costs on the equipment, and is potentially on the hook for some $6.2 million more.

Bobby and Kristy loved the process of “sweeping” agencies of excess funds lying around in order to try and plug gaping holes in the state budget that dogged Jindal every single year he was governor. “Sweeping” for funds is something like picking up crumbs off the floor in an attempt to gather enough to make a bundt cake.

“Since the debt could not be immediately defeased (a provision that voids a bond or loan) because of the limited prepayment options, the funds should have been segregated into a sinking account for defeasement of the debt, not a statutorily dedicated fund account that could be swept by legislative action,” the audit report says.

But the Louisiana Office of Economic Development (LED), then headed by $300,000-a-year Director Stephen Moret, failed to do that and, presto! The funds got swept by the Jindal Housecleaning Service and as a result, the state “will continue to incur additional interest and administrative costs until the debt (on the equipment) is defeased,” the audit reads. “If not defeased before the Oct. 2022 … the state will incur more than $6.2 million in additional interest and administrative costs.”

LED entered into a Cooperative Endeavor Agreement with Northrop Grumman in the early 2000s. The company had acquired Avondale Shipyard in Jefferson Parish and Northrop Grumman, under the terms of the deal, agreed to maintain employment levels of some 3,500 jobs a year with an economic impact of $1 billion. In return, the state agreed, among other things, to issue bonds to finance more than $34 million worth of cranes and equipment that would modernize the shipyard.

But dreams and schemes are made of fragile things. Northrop Grumman fell short of its job requirements and LED notified the company in early 2011 that it wasn’t living up to its employment obligations. Northrop Grumman agreed to settle with the state for $34.6 million, which represented the acquisition cost of the equipment. It wired the money to LED in March 2011, the report says.

But the state didn’t use the money to pay off the debt on the equipment, nor did it set the funds aside in an escrow account to pay it off in the future. Instead, it “swept” the money into the Louisiana Medical Assistance Trust Fund, was enacted during the 2011 session to help supplement the state’s Medicaid program.

But don’t worry, folks. It’s just another example of the superb financial management of the state’s resources about which Jindal would boast—in Iowa, certainly not Louisiana—during his comical quest for the Republican presidential nomination in 2015, his final year I office.

And now the state finds itself hanging out to dry while trying to come up with that long gone $34.6 million, plus about $2 million in interest and administrative costs.

In a written response to the audit’s findings, Commissioner of Administration Jay Dardenne pointed out that Jindal’s actions, while ill-advised, were nonetheless legal. “The (Jindal) administration’s decision to use the funds for other purposes was not prohibited by the terms of the (agreement) with Northrop Grumman,” he says, noting that the Legislature approved of the financial maneuver.

Perhaps, but we all know the definitions of the legal thing and the right thing are sometimes poles apart. In this case, those responsible knew what that $34.6 million was for and they chose to do what was legal but not what was right.

The question now is does the Office of Risk Management carry excess coverage that would allow the State to make a claim for recovery of the money on the basis of stupidity? Should Jindal, Nichols, and Moret be asked to dig deep into their pockets to come up with the money?

Nah. It’ll never happen.

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What’s the difference between Evangeline and Terrebonne parishes?

Apparently only about 120 miles, judging from the manner in which the respective sheriffs’ offices ignore and abuse the constitutional rights of their citizens.

Where the U.S. Justice Department recently issued a report highly critical of the practice of “investigative arrests” in Evangeline, the First Circuit Court of Appeal has ruled unconstitutional a raid carried out by the Terrebonne Parish sheriff last summer because he didn’t like what a blogger said about him.

And, LouisianaVoice has learned, the Terrebonne sheriff and others are targets of a federal investigation over other business dealings of the sheriff’s office.

Following the filing a federal lawsuit filed against Sheriff Jerry Larpenter last August, the anticipated second shoe has now fallen on several other leading business and political leaders of Terrebonne Parish.

The fallout stems from an ill-advised—and unconstitutional—warrant and RAID executed against a Houma police officer on Aug. 2 over no greater offense than criticism of the sheriff’s department on a local Internet blog.

It now has spilled over to a general indictment of Gordon Dove and the parish government’s relationship with a local insurance agency.

Wayne Anderson, a former deputy sheriff and currently a Houma police officer, and his wife, Jennifer, filed suit on Aug. 10 against Larpenter over the raid carried out on their home by sheriff’s deputies and now have amended Parish President Dove and others into the lawsuit.

The latest AMENDED PETITION adds as defendants:

  • Dove, individually, and in his official capacity as President of the Terrebonne Parish Consolidated Government;
  • Anthony J. Alford, individually, and in his official capacity as President of the Terrebonne Levee and Conservation District Board of Commissioners;
  • The Terrebonne Parish Sheriff’s Office;
  • The Terrebonne Parish Consolidated Government, and
  • The Terrebonne Levee and Conservation District.

The blog, ExposeDat, began posting critical stories of Dove and Larpenter in early July, prompting the illegal raid on the Andersons’ home. While unconstitutional, the raid did have the apparent effect of successfully causing the blog to be taken down, thus infringing on the First Amendment that protects free speech.

But in the interim, Larpenter, who was quoted as saying, “If you’re gonna lie about me and make it under a fictitious name, I’m gonna come after you.”  did just that. Executing a warrant signed by State District Judge Randy Bethancourt instead of the “Duty Judge,” who the latest legal filing says should have reviewed and considered the warrant.

Sheriff’s Detective Lt. Glynn Prestenbach Jr., who took the warrant application to Bethancourt for his signature, since said he “just did what (Terrebonne Parish District Attorney) and Jerry (Larpenter) told him to do,” the Andersons’ amended petition says.

Following the raid, law enforcement personnel arrived at the Plaintiffs’ residence, the petition says. Anderson was informed he was being placed on administrative leave indefinitely and was the subject of an internal affairs investigation for failing to uphold the law and for engaging in conduct unbecoming of a law enforcement officer. Anderson was stripped of his badge, his duty weapon, his law enforcement commission card and his marked patrol unit—all in full view of the Andersons’ neighbors, action that they say has caused embarrassment and harm to their reputations.

Bethancourt denied the Plaintiffs’ Motion to Quash, finding the defamation statute to be sufficiently broad to allow him a “look-see” to determine if the evidence wrongfully seized contained defamatory statements. Writs were taken to the Louisiana First Circuit Court of Appeals which quashed the search warrant on August 25 and ruled that the search and seizure (were) unconstitutional.

The amended petition accuses the defendants of conspiring together “to initiate unjustified and factually and legally baseless criminal proceedings against the plaintiffs. The Defendants lacked probable cause and/or any viable legal justification to initiate the said proceedings. The Defendants acted maliciously and as a consequence of these actions, the Plaintiffs suffered deprivation of their liberties and have sustained damages,” the petition says.

“Defendants Gordon Dove, Jerry Larpenter and Anthony Alford all met and/or discussed a jointly accepted and agreed upon the illegal plan discussed hereinabove,” it says. “Sometime immediately after a July 11, 2016, article entitled ‘You Scratch Mine & I’ll Scratch Yours’ was published on the website that detailed the business dealings between the Defendants, Defendant Dove allegedly announced to the entire Synergy Bank4 Board of Directors that he was going to shut the Exposedat website down and that he was having subpoenas issued. Defendant Anthony Alford lodged his criminal complaint within three days of the article’s publication.”

Once Alford filed his complaint, Larpenter wasted no time in initiating an investigation by his office by instructing Prestenbach to immediately conduct an investigation, the Andersons claim. “Prestenbach did as instructed and immediately met with and interviewed Alford. Prestenbach also sought by subpoena records from Facebook relating to John Turner (an alias used by Anderson), and within a period of five days obtained information relating to various IP addresses. Prestenbach searched the IP addresses and noticed that they were assigned to a corresponding AT&T account. Prestenbach then subpoenaed records from AT&T to identify the IP addresses that corresponded to the Facebook posts of John Turner.”

On or about August 1, 2016, Prestenbach received and reviewed the documents which had been subpoenaed from AT&T. These records revealed that the computer used to send the various posts was located at the Plaintiffs’ home address. Prestenbach immediately contacted Larpenter and advised him of the results of his investigation including the fact that the address obtained was the residence of Wayne Anderson, who was a police officer for the Houma Police Department. Larpenter allegedly told Prestenbach to stand by for further action. Later,

TPSO Detective Kody Voisin called Prestenbach and advised him that he had spoken to Defendant Larpenter who wanted a search warrant issued, and that he [Larpenter] had spoken to Terrebonne District Attorney Joe Waitz who also agreed to continue the investigation and obtain a search warrant. HERE is Prestenbach’s report as well as threads from Facebook postings.

The question that must be asked and the issue that must be determined at this point is by what authority did Larpenter obtain the Facebook and AT&T records? Who issued the subpoena for that information? If the search warrant was unconstitutional, it would seem that the subpoena seeking the private records would be as well.

The amended petition is seeking actual and punitive damages, court costs and attorney fees.

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All those rabid LSU fans who find themselves in the unusual position of backing a team virtually buried in the 19th position among AP’s football elite can take heart; at least the Tigers aren’t 44th.

And those equally insane ‘Bama fans looking to secure another crystal football for their school’s trophy case can be glad the Tide isn’t ranked 46th.

As both teams head into their respective post-season games, 24/7 Wall St., a research firm that publishes some 30 ARTICLES per day on economy, finances, and government, has come out with its rankings of the best- and worst-run states in the country.

And it ain’t pretty.

Alabama is no. 46 out of 50 states but that’s okay. Never mind that it is one of the poorest states in the nation with 18.5 (5th highest) of its citizens living in poverty). The Tide is in the playoffs for the national championship.

Don’t worry about the state’s unemployment rate of 6.1 percent, which is tied for 8th highest in the country. Alabama, which proclaims itself to be the Heart of Dixie, pays the coaches of its two major college football teams, ‘Bama and Auburn, combined SALARIES of $11.67 million—$4.73 for Auburn’s Gus Malzahn and $6.94 million for ol’ Nicky Boy.

(Les Miles, before being unceremoniously cut loose by LSU’s Athletic Director Joe Alleva, himself the possessor of somewhat dubious talent, was pulling down a cool $4.3 million per annum. But all of these salaries pale in comparison to Jim Harbaugh’s $9.004 million salary at Michigan.)

LSU, meanwhile, is headed to this Friday’s Citrus Bowl in Orlando to take on the juggernaut Cardinals of Louisville—without the services of Leonard Fournette who has played his last game for the Tigers. (On that note, now that Fournette has declared himself draft eligible, retained an agent and opted not to participate in Friday’s game, has he, or any other player deciding to go pro, also opted out of attending classes for the remainder of the semester as well? If not, are any of them continuing to reside in free housing, enjoying free meals or using school training equipment for workouts? Just a thought.)

Meanwhile, back home, Louisiana ranks as the 44th best-run (or the seventh worst-run) state, just two notches ahead of Alabama. The two are sandwiched around Kentucky in the rankings while the state geographically wedged between them, Mississippi, is ranked 47th best, or fourth-worst with the fifth-highest unemployment rate at 6.5 percent and the highest poverty rate at 22.0 percent.

Louisiana’s unemployment rate of 6.3 percent (sixth-highest, right behind Mississippi) and its third-highest poverty rate of 19.6 percent (New Mexico’s 20.4 percent is second-highest) are nothing to brag about. Nor is its $4,067 debt per capital (16th highest).

The question, at least in Louisiana’s case, is: Why?

  • Louisiana has some of the highest crude oil and natural gas reserves in the nations;
  • Louisiana is one of the top crude oil producers in the country;
  • More crude oil is shipped to the Louisiana Offshore Oil Port (LOOP) than to any other U.S. port;
  • Louisiana has several of the nation’s largest ports with exports totaling $10,530 per capita in 2015, second highest of all states, behind only Washington;

So with this abundance of natural resources, why is it that Louisiana continues to struggle with high poverty, low educational attainment and high violent crime.

Well, for starters, you can tie the first two of those to the third: high poverty and low education rates equal high crime. Every time.

All that notwithstanding, however, the overriding question is how can a state with such an abundance of the world’s most valuable commodity fail to profit?

Market news has been replete with stories lately about how the poor oil companies are taking hits with some reporting net profits down by as much as 37 percent. Still, even with lower earnings, some, like SHELL, reported net profits of a paltry $2.24 billion for the second quarter of 2016. That’s three months’ profits, folk. Three months.

Yet, Louisiana continues to give away the store to big oil through more than generous tax breaks while allowing them to walk away from the ravages they have inflicted on our coastal marshes.

With so much revenue derived by the oil and chemical industries through these tax breaks, there is no reason why this state’s citizenry continues to wallow in the depths of financial despair and desperation.

With a more reasonable tax structure in which big oil, big chemical plants, and their related industries (ports, trucking, and rail) could be asked to bear more responsibility for wrecking our coastline, polluting our air and water, and tearing up our highways, Louisiana could forge ahead of most of those states ranked ahead of them.

Yet we continue to place the greatest burden on the backs of those who can least afford it: the middle and low income groups through the most inequitable form of taxes. Louisiana has the third-highest average (9.01 percent) in state and local SALES TAXES in the nation.

Ever wonder why that is? For starters, the average taxpayer doesn’t have the time or resources or a PAC to generate organized opposition to this rigged tax structure or to purchase legislators’ votes. Big oil, Big Pharma, and Big Banks do.

Do you think it was sheer coincidence that former State Sen. Robert Adley was appointed by Gov. John Bel Edwards as Executive Director, Louisiana Offshore Terminal Authority? http://gov.louisiana.gov/news/governorelect-edwards-announces-cabinet-executive-staff-bese-board-appointments

Think again. Here is LouisianaVoice’s overview on why Big Oil has the influence it exercises in this state: https://louisianavoice.com/2016/08/28/ag-jeff-landry-joins-jindal-legislators-in-protecting-big-oil-from-cleanup-responsibility-follow-the-money-for-motives/

(Be sure to click on Copy of Campaign Contributions)

But at least the NCAA playoffs and the Citrus Bowl—and national signing day—will keep the natives content for a while longer.

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Two seemingly unrelated news stories appeared in my laptop emails on Monday, one noteworthy for nothing more than its abject absurdity and the other even more so for the ominous threat it poses to the ability to hold elected officials accountable.

And while LouisianaVoice rarely delves into national politics because, well, truth be told, it’s admittedly way beyond my pay grade (and I was always taught to “write what you know”), both these stories have potential trickle down repercussions if any legislator is dumb enough to take his (or her) cue from the Man with the Golden Hair.

In the first story, Trump campaign manager Kellyanne Conway issued a dire warning, heavy with legal overtones, to “be careful” BE CAREFUL what we say about her boss. Her remarks, of course, were directed to retiring Senate Minority Leader, Nevada Democrat Harry Reid.

Reid last week said the election of Trump “has emboldened the forces of hate and bigotry in America” And that, in the minds of Conway—and presumably Trump—borders on libel (and, of course, “crooked Hillary” is simply campaign rhetoric).

It’s no secret that Trump, on the one hand, champions tort reform whereby corporations can be better protected from lawsuits over such trivial oversights as exploding batteries, toxic dumping, sexual harassment, etc. On the other hand, however, Trump has made it equally well know that he favors more liberal libel laws which would make it easier for public officials to sue.

Well, Trumper, you can’t have it both ways. The landmark case Sullivan v. New York Times makes it quite clear there must be a “reckless disregard for the truth” for a public official to recover damages.

Were that not the case, there might well have never been a Watergate scandal, the White House plumbers, Bebe Rebozo Iran-Contra revelations, Sen. John Edwards, the all-too-cozy relationship between Wall Street and The Clintons, Bushes, and even Obama or any number of other investigative pieces about public corruption. And to quote an old Baton Rouge State-Times editor responding to a reader who was irate over the treatment the paper was according Richard Nixon: “Exactly what is it about Watergate you would rather not have known?”

And out in Arizona, we have a bill pending BILL PENDING before the state legislature that appears to be right out of the American Legislative Exchange Council (ALEC) playbook and if it is, you can look for clones of this bill to pop up across the landscape, including, in all likelihood, Louisiana.

State Sen. John Kavanagh, R-Fountain Hills (wouldn’t you just know it would be a Republican who wants to put the kibosh on the public’s right to know?) has introduced a bill that would make it more difficult to obtain public records if public officials feel the requests are “unduly burdensome or harassing.”

That’s pretty open-ended and a decided advantage to any public servant who feels my request might be “unduly burdensome.” Wouldn’t Kristy Nichols have loved that? No, wait. It wouldn’t have mattered with her; she simply ignored my requests until she was damned good and ready to comply—if she even decided to comply. Okay, Mike Edmonson. He’d feast on a law like that.

Lest you think such a bill would never pass, consider this: this is Kavanagh’s second attempt at passing the bill and last it passed the Senate by a 22-7 vote, but lost in the House by a 40-19 vote.

LouisianaVoice will be watching closely to see if any similar such legislation is introduced in the 2017 session. If it is, then we will know without a doubt that this is an ALEC-sponsored bill.

ALEC, you may recall, meets at retreats, mini-conventions and conferences to draft “model bills” for members to introduce in their respective legislatures back home.

More recently, it has launched a sister organization, American City Council Exchange (ACCE) that has the same goals as ALEC, only on a municipal as opposed to state level. One of ACCE’s objectives, outlined in an Indianapolis conference last July, is to have its members become familiar with public records laws and to “be on the lookout for frivolous or abusive requests.”

Sen. Kavanagh couldn’t have said it better himself.

But what he conveniently overlooks is this: In any company, be it a mom and pop hardware or one of those mega box stores, management has the unchallenged right to know what its employees are doing when representing the company, be it processing orders, reducing errors, or one-on-one contact with the customer.

The President, Congress, 50 governors, Kavanagh, his fellow legislators and other elected officials throughout the land are chosen by the people. They in turn hire subordinates to carry out the day-to-day functions of government. So Kavanagh and every other elected or appointed public official in this country works for…the people.

And we, the people, have a right to examine the work they’re doing on our behalf.

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