Iran billionaire executed over $2.8b fraud

A BILLIONAIRE businessman at the heart of a $US2.6 billion ($A2.8 billion) state bank scam, the largest fraud case since Iran's 1979 Islamic Revolution, has been executed, state television reports.

Authorities put Mahafarid Amir Khosravi, also known as Amir Mansour Aria, to death at Evin prison, just north of the capital, Tehran, the station reported.

The report said the execution came after Iran's Supreme Court upheld his death sentence.

The fraud involved using forged documents to get credit at one of Iran's top financial institutions, Bank Saderat, to purchase assets including state-owned companies like major steel producer Khuzestan Steel Co.

Khosravi's business empire included more than 35 companies from mineral water production to a football club and meat imports from Brazil.

According to Iranian media reports, the bank fraud began in 2007.

A total of 39 defendants were convicted in the case. Four received death sentences, two got life sentences and the rest received sentences of up to 25 years in prison.

The trials raised questions about corruption at senior levels in Iran's tightly controlled economy during the administration of former President Mahmoud Ahmadinejad.

Mahmoud Reza Khavari, a former head of Bank Melli, another major Iranian bank, escaped to Canada in 2011 after he resigned over the case.

He faces charges over the case in Iran and remains on the Islamic Republic's wanted list.

Khavari previously admitted that his bank partially was involved in the fraud, but has maintained his innocence.

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Gunmen fire inside El Salvador bus, kill 6

Police in El Salvador say gunmen boarded a bus in a town near the capital killing six people. Source: AAP

POLICE in El Salvador say gunmen boarded a bus in a town near the capital and opened fired on passengers, killing six.

National police director Rigoberto Pleites said another five people were wounded during the Friday bus attack in the town of San Luis Talpa near San Salvador.

Pleites said witnesses told police the assailants were gang members dressed in uniforms similar to those issued to road maintenance workers.

He said investigators haven't confirmed they belonged to a gang.

Police Commissioner Mauricio Ramirez said there have been threats of increased violence in the country in the coming days, but he didn't provide any other details.

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Woodside weighs options for cash stash

WOODSIDE Petroleum chief executive Peter Coleman says he needs time to consider options for excess cash after the company's exit from the $US2.5 billion Leviathan project.

The announcement on Wednesday that Woodside would not buy a stake in the giant Israel-based gas project sparked speculation about a capital return to shareholders.

But Mr Coleman refused to commit to a special dividend on Thursday, saying capital could be directed to new projects.

"I think it's too early for me to give a commitment one way or the other as to what we'll do," Mr Coleman told media during an investor day briefing in Sydney.

Mr Coleman said management would take options to Woodside's board "in the not too distant future".

He did not rule out a return to Leviathan in the future, saying the Israeli field remained a world class asset.

The decision to forego the option to take a stake was driven by "surface issues" including taxation, he said.

Woodside emphasised new exploration and cost discipline in its presentation to investors, with Mr Coleman saying the company would not pursue assets that could not make a commercial return.

Investments would be in the $1 billion to $5 billion range and funded by debt, he said.

While the Western Australian Browse project is to be the key driver of growth for the company, Mr Coleman said Woodside had renewed its focus on exploration - an area that had been weak - by bringing in new expertise.

"We had developed an organisation that was technically and process-wise world class but we didn't have any oil finders," Mr Coleman said.

Australia remains the core territory for Woodside but it is now seeking to balance its assets with exploration in Africa, South America and Canada and projects in Ireland, New Zealand and Myanmar (Burma).

Media reports on Thursday suggested Woodside was considering a takeover of Papua-New Guinea-focused Oil Search.

Mr Coleman said while PNG was on Woodside's radar, companies and assets in the island nation were too expensive to add value at present.

Mr Coleman said he did not feel pressure to deliver a major project as investors were focused on earnings-per-share value rather than increased production at any cost.

Woodside chief financial officer Lawrie Tremaine said a forecast rise in free cashflow would allow the company to continue its strong dividend payout ratio - currently 80 percent of underlying net profit after tax "for the foreseeable future".

Woodside shares gained 49 cents or 1.19 percent to $41.72 on Thursday.

Morningstar resources analyst Mark Taylor said the oil and gas sector had benefited from a general rise but there was also some relief around the exit from Leviathan.

"I think that was a flawed strategy," he said.

Mr Taylor said Woodside should focus freed-up capital on new exploration around its Australian assets.

"I think they should really be pumping their existing assets for all they are worth," he said.

Mr Taylor was not supportive of a capital return to shareholders, saying the current dividend ratio was enough.

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GDP to look better than it really is

HEADLINE-GRABBING economic growth figures early next month will probably look good, but appearances can be deceiving.

Every three months there's a barrage of economic data that can dramatically change perceptions of the state of the economy.

It's a flurry of quarterly figures, culminating with the release of the national accounts and its headline gross domestic product (GDP) growth figure.

And it's just about upon us.

The national accounts are due on June 4, Wednesday week, and will cover the first quarter of this year.

The GDP growth number will most likely look just fine, even pretty good.

Economists already have some figures to plug into their estimates for the rise in GDP.

Retail trade and foreign trade data already published by the ABS show the economy was boosted by higher consumer spending and exports.

And imports likely fell, diverting spending power toward local businesses and also boosting GDP.

Taking just retailing and foreign trade into account, GDP would be up by about 1.2 per cent in the quarter.

That's only just shy of twice the 0.7 per cent average quarterly increase seen in 2013.

And it's about one-and-a-half times the long-run average of 0.8 per cent.

But it's not likely to end up so strong, and even then will overstate the economy's momentum.

Imports, judging by the monthly trade figures and price data from the ABS, have stopped rising.

Given the strong link between imports and overall spending, that implies weak or no growth in total spending in the economy, or domestic demand as economists call it.

The trade figures also suggest imports of capital goods fell even faster in the March quarter than in the previous three months.

And the great bulk of Australia's capital goods are imported these days.

That suggests business capital spending fell, dragging on growth in the quarter and partly offsetting those other positives from exports and retail trade.

Business capital spending figures from the bureau on Thursday next week should confirm what the import numbers are saying about what happened in the March quarter.

That report will also includes projections, based on the investment plans of the businesses surveyed by the ABS.

Those projections, extending out to mid-2015, should confirm that the long-awaited pickup in business investment outside the fading mining sector, essential for the economy's so-called "rebalancing", is still beyond the horizon.

In the meantime, not too much should be made of the strong-looking growth in the March quarter, at least to the extent that it's based on exports.

GDP growth is important because it generates employment.

And the current growth in exports is coming mainly from mining, where employment and investment are falling as the sector moves out of the investment phase and into the production phase.

So it will be a kind of hollow, jobless growth.

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WA Labor tight-lipped on Ferguson move

LABOR'S West Australian branch is remaining tight-lipped about moves to have former federal resources minister Martin Ferguson ousted from the party.

On Monday night, the ALP's WA executive endorsed a motion put forward by the Maritime Union of Australia to remove Mr Ferguson from the party.

Mr Ferguson - who in October accepted the newly created chairman's role with the Australian Petroleum Production and Exploration Association's advisory board seven months after resigning from Julia Gillard's cabinet - has previously labelled the MUA a "rogue" union.

In February, he singled them out for delays and blowouts to the massive Gorgon gas project in WA.

And on Tuesday, Mr Ferguson told ABC radio in Perth that he would "not be losing any sleep" about the MUA's motion.

"This is the same branch of the ALP that in many ways is a national disgrace," he said.

"They should be debating more seriously why at the recent half-Senate election, why they let down not only the working people of Western Australia but the working people of Australia in their inability to elect two or three Labor senators.

"And the fact there's too much union influence in WA pre-selections at the state and federal level, and in policy determinations.

"It's about time we broadened the church of the Labor party and encouraged rank and file participation rather than union dominance."

A WA Labor spokesman said state leader Mark McGowan would not be commenting on the matter as it was "an internal issue".

But WA opposition treasury spokesman Ben Wyatt retweeted a quote by federal leader Bill Shorten: "The Labor party has to learn to live with people with different views within its ranks".

The MUA was being sought for comment.

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Abbott contradicts budget on uni fees

A student union says Tony Abbott behaved cowardly by cancelling a university visit amid protests. Source: AAP

CONFUSION abounds over government plans to deregulate university fees after Prime Minister Tony Abbott contradicted his own budget.

But students who protested in Sydney and Melbourne are certain of one thing: they'll have to pay for the government's decisions and they're not happy.

Mr Abbott told ABC radio that only students who start studying in 2016 would face potentially higher fees when universities can charge what they like.

"If you start next year, your conditions of study won't change," he said.

But the budget papers clearly state that anyone who enrols after May 14 will face deregulated fees in 2016.

Only those who were already studying on budget day would continue to have their fees capped - and only if they finish their studies by 2020.

Education Minister Christopher Pyne reiterated this in a separate ABC radio interview after Mr Abbott's comments.

A mother asked him whether her daughter, already at university, would have to pay more.

"If that student stays in the course that she's doing, she'll continue under the rules that she started," he said.

"If she changes course, then quite rightly she will face the new measures."

A spokesman for Mr Pyne said the prime minister "may not have been as clear as he could have been".

Universities Australia told AAP it understands there's not been any change to policy.

It wants the government to take more time to look at any unintended consequences of the higher education changes before setting them in law.

Students were enrolling now to start in the second half of 2014 and universities had to be able to tell them what the costs would be from 2016.

"There is no time for universities to be able to cross the Ts and dot the Is to be able to advise students on what those fees might be," chief executive Belinda Robinson said.

National Union of Students president Deanna Taylor wasn't surprised by the confusion at high levels.

"I don't think the government really put a great deal of thought into their policy," she told AAP, saying it appeared to be very ideologically driven.

The union organised a national day of action on Wednesday with thousands of students protesting the changes.

In Melbourne, students clashed with police, while one activist was arrested in Sydney.

A police risk assessment before the protests forced Mr Abbott and Mr Pyne to cancel plans to visit a Geelong research facility at Deakin University.

Mr Abbott said students were looking for "a big rumble" and an excuse to riot.

Ms Taylor labelled the prime minister cowardly and said students weren't violent rabble-rousers out to cause trouble.

"They're trying to make us sound like spoiled little brats who don't know how good we've got it. They have a very clear agenda," she said.

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Bentley blockade bids farewell

A protest camp in NSW has packed up after Metgasco's licence to drill for CSG was suspended. Source: AAP

IT was meant to be the day when police swarmed an unwavering coal seam gas (CSG) blockade and exploration equipment was moved in.

Instead, Tuesday was marked by victorious protesters dismantling their tents at the Bentley camp in northern NSW and returning to normality.

Five days after the NSW government suspended Metgasco's exploration licence at the site, blockade participants - some of whom have been in place since early this year - packed their bags.

Protesters marked the morning with a closing ceremony before pulling apart the camp, which is expected to be completely cleared by the end of the week.

"People are gradually going back to their own lives," Ian Galliard, of the Lock the Gate Alliance, said.

Mr Gallaird said protesters remained poised to return in case the government allowed Metgasco to progress with the gas well, Rosella.

The exploration licence was suspended because Metgasco failed to adequately consult the community.

Farmer Peter Graham has been subjected to fierce condemnation for allowing Metgasco to drill for CSG on his land at Bentley.

Mr Graham previously said protesters had laid spikes across his driveway and welded his gates shut.

There was now "full access" to the Graham family farm, Mr Galliard said.

Not that Metgasco has given up the fight.

The company has provided a lengthy submission to the Office of Coal Seam Gas, which Metgasco says demonstrates it has properly consulted the community.

It said it remained committed to mining gas in the region and has brought in lawyers to advise it on the licence suspension.

Metgasco was last week referred to the Independent Commission against Corruption because of alleged connections to the Obeid-linked Australian Water Holdings.

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Australia on track for El Nino

Australia is likely to get El Nino conditions from August, increasing the risk of drought and fire. Source: AAP

AUSTRALIA remains firmly on track for El Nino weather conditions from mid-winter, potentially extending drought conditions in some parts and increasing the risk of bushfires.

It's not all bad news though - it could mean fewer tropical cyclones next summer and provide a boost for some dry-weather crops.

The Bureau of Meteorology issued its latest El Nino update on Tuesday, saying there is at least a 70 per cent chance of the weather phenomenon developing in 2014, and most likely by August.

The forecast is broadly in line with those issued recently by the United Nations weather bureau and NASA.

"Typically an El Nino brings reduced rainfall across southern Australia but also inland eastern Australia, including the Murray-Darling basin," Andrew Watkins, head of the Bureau of Meteorology's Climate Prediction Services told AAP.

"So that does affect our food bowl.

"We also tend to get warmer temperatures in southern Australia, particularly during winter, spring and summer.

"Then you get the flow-on effects from warmer and drier weather coming into summer - so it tends to increase the risk of a bad bushfire season, particularly in southeastern Australia."

That's bad news for parts of the country still recovering from last year's bushfires and areas of Queensland, NSW, South Australia and Victoria still in drought.

On a more positive note, Dr Watkins said El Nino may reduce the number of tropical cyclones next summer and could provide a boost for growers of crops like sugar cane and mangoes.

The very warm autumn across parts of Australia's east continued on Tuesday - with Melbourne experiencing its equal-longest run of May days above 20 degrees.

The previous record was set in 1972.

Sydney broke the record for its longest run of May days above 20 degrees.

Dr Watkins said the warmer temperatures are not definitively linked to the looming El Nino.

The Australian ski season may be affected by El Nino with less natural snow falling at popular resorts.

However, Dr Watkins said clearer skies during winter could mean better temperatures for man-made snow.

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F1 legend Brabham an inspiration: Jones

Three-time Formula One champion driver Sir Jack Brabham has died aged 88. Source: AAP

GENERATIONS of Australian motorsport drivers will forever be indebted to Sir Jack Brabham for opening the door to international success.

That will be the three-time Formula One world champion's greatest legacy, according to 1980 F1 champion Alan Jones.

Brabham died on Monday at his Gold Coast home, aged 88.

The news caused a global outpouring of tributes to the ex-Sydney fruit and vegetable delivery driver who went on to become one of Australia's greatest sportsmen.

World titles in 1959, 1960 and 1966 - when he became the only man to win a championship in a car he'd designed and built - paved the way for drivers such as Jones and modern stars Mark Webber and Daniel Ricciardo to show what they could do internationally.

"Built, designed and engineered his own car and won the world championship," Jones told AAP.

"I mean, that's an unbelievable feat which hasn't been done before and I don't think will ever be done again. He's helped a lot of Aussies ... he opened up the eyes of the world to Aussie talent in that respect.

"Just showing young blokes that it can be done. If you have the determination and the willpower and single-mindedness you can pack your bags, you can go to the other end of the world and you can achieve your goal, your dream, which he did."

Brabham only took up motorsport in 1948 after a two-year stint as a mechanic in the Royal Australian Air Force.

After winning four Australian speedcar championships, Brabham headed to England, debuting for the Formula One Cooper team in the 1955 British Grand Prix when he was 29 years old.

In 1959, Brabham won his first world title when he pushed his car over the finish line at the final race of the year after it had run out of fuel.

Brabham took part in 126 Grands Prix from 1955 to 1970, amassing 14 wins, 31 podiums, 13 pole positions and 12 fastest laps.

Following his retirement in 1970, Brabham was the first motorsport identity to be knighted, receiving the honour in 1978.

Brabham was known throughout his career by the nickname Black Jack, a moniker which had as much to do with his reticence to engage in conversation away from his car as his dark hair.

"Sir Jack was a man of few words, that's for sure," Jones said.

"He wasn't a chatterbox but when he put his bum on the line he got the job done and that's what you've got to do."

Brabham had battled illness for several years and was receiving dialysis treatment three times a week.

Despite his health concerns, Brabham regularly attended functions and a day before his death had travelled to the Sunshine Coast, where he was reunited with the 1967 BT23 race car he designed and built.

His wife, Lady Margaret, said preparations were underway for her husband's funeral though no arrangements had been confirmed.

"He was fine yesterday so it has been a bit of a shock even though he had been sick for some time," she told motorsports website Speedcafe.com.

"I have spoken to all three boys and we are in the process of organising funeral arrangements."

Sir Jack is survived by his wife and sons Geoff, Gary and David.

His grandsons Matthew and Sam are also racing drivers, with Matthew preparing to compete at this weekend's Indy Lights event in Indianapolis as part of the build-up to this month's Indy 500 race.

"He lived an incredible life, achieving more than anyone would ever dream of and he will continue to live on through the astounding legacy he leaves behind," his son David said in a statement.

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WA won't meet funding shortfalls: Barnett

THE Western Australian premier concedes the federal government's planned public hospital funding cuts will start having an impact from July 1, but the state won't cover the shortfalls.

After the opposition lashed Colin Barnett for skipping the gathering, the Liberal leader said he had "very good reasons".

GST distribution wasn't on the agenda and that is the key issue facing WA, so he will attend the next Council of Australian Governments meeting later this year, where it will be discussed before Prime Minister Tony Abbott.

There is "an unnecessary sense of panic" about the cuts, he added.

Mr Barnett previously said he was in no rush to discuss the health and education budget cuts because they wouldn't kick in for several years.

But on Monday, he admitted some impact would be felt, particularly in health, from the start of the new financial year.

"There are some National Partnership Agreements that it appears the Commonwealth may not continue. If that is the case, they will finish - the state is not in a position to pick up that gap in funding," Mr Barnett said.

"Some of the states - NSW and Queensland in particularly - at previous COAG meetings did special deals with the Gillard government. They can hardly be surprised that those deals have disappeared."

He flagged potential changes to eligibility for pensioner cards and health-care cards.

"Under the worst scenario, there would be $24 million less coming to WA. We would maintain our commitment, but we're not going to pick up any reduction in commonwealth entitlement."

While he previously said Mr Abbott had not flagged the funding changes at the previous COAG meeting, he claimed the prime minister had foreshadowed states and territories taking increased responsibility for education and health.

"Everyone agreed that was the way to go."

According to Mr Barnett, Mr Abbott also said there would be some compensatory arrangements, with the Commonwealth taking on increased responsibilities in other areas.

While WA hospitals faced a $196 million funding cut over the next four financial years, the overall impact of the federal budget on the state was positive, including "a slightly better position on GST ... and some funding in particular areas".

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