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The US Treasury mistakenly sent more than $1.4bn (£1.1bn) of its pandemic rescue funds to dead people, government inspectors have found.

The finding was one of several “challenges” uncovered in the official review of federal coronavirus aid.

Since March, Congress has pumped some $2.6tn into the American economy in an effort to shield it from virus slowdown.

But the rush to deliver the money has contributed to errors, inspectors said.

For example, the Government Accountability Office (GAO) report found that the Treasury Department, which was in charge of mailing stimulus cheques to American families, did not check death records, even though some of the tax officials working on the programme said they raised concerns about the risk of erroneous mailings.

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The report also warned that the Paycheck Protection Program for small businesses – a low-cost loan fund that accounts for 26% of US pandemic spending – was at “significant risk” of fraud, faulting the Small Business Administration for not cooperating with requests for information about the loans and its plans for oversight.

“Because of the number of loans approved, the speed with which they were processed, and the limited safeguards, there is a significant risk that some fraudulent or inflated applications were approved,” the inspectors said.

It said changes to respond to those risks were “essential”.

Debate over aid

The report comes as lawmakers in Washington debate whether or not additional aid is necessary.

While Democrats and many economists – including the head of America’s central bank – have recommended further relief, pointing to high unemployment, many Republicans have been hesitant to approve more money.

“We should be very, very careful in evaluating what’s necessary before we go forward,” Republican Senator Pat Toomey said at a recent hearing.

White House officials have said additional stimulus is likely, but that it makes sense to see how the efforts so far are working. Critics say federal programmes have resisted oversight efforts, however.

In April, President Donald Trump removed the official in charge of overseeing coronavirus spending.

Congresswoman Nydia Velázquez, a Democrat from New York, said the audit had revealed “mishandling and negligence” and “mismanagement of taxpayer funds”.

“If today’s report makes one thing clear, it is the need for transparency and accountability,” she said. “Administration officials must answer that call.”

How much has the US spent on coronavirus?

Congress has approved about $2.6tn in pandemic spending since March – a package estimated at about 14% of the country’s output.

About 11%, or more than $280bn, was intended to be spent on direct payments of up to $1,200 for individuals earning less than $75,000 and $500 for children.

The US has sent 160.4 million pandemic payments worth a total of $269bn so far, according to the report.

The single largest chunk of the rescue funding – about 26% – was for small business loans through the Paycheck Protection Program.

The US has distributed more than $500bn in loans to 4.6 million businesses so far.

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Critics have said the distribution of those funds has been bungled by unclear rules and lack of oversight, claims supported by the GAO report.

“Consistent with the urgency of responding to serious and widespread health issues and economic disruptions, agencies have given priority to moving swiftly where possible to distribute funds and implement new programs,” it said.

“As trade-offs were made, however, agencies have made only limited progress so far in achieving transparency and accountability goals.”

The coronavirus lockdown measures imposed by governments around the world have caused severe disruption to supply chains, as companies were forced to shut in March.

One sector that has been deeply impacted by the pandemic is the flower industry in East and Southern Africa, which is one of the biggest exporters of cut flowers in the world.

Prior to the pandemic, the global cut flower market was worth $13bn (£10.4bn) per annum, according to international flower trade association Union Fleurs.

The European Union and the US are the biggest buyers of cut flowers in the world, Union Fleurs says. Kenya is Africa’s largest flower exporter, with South Africa not far behind.

Multiflora in Johannesburg is one of South Africa’s busiest cut flower auction houses. Prior to the pandemic, the auction house had an annual turnover of $16m. But right now, the auction house is getting 40% of the revenue it previously had.

Delayed and cancelled flights, increased freight costs and a huge fall in demand have brought the flower trade to a virtual standstill, and some flower farms in Kenya have already gone out of business since lockdown began.

All in all, the flower industry in Africa estimates that it has so far had to throw away 241,000 stems as a result of the pandemic.

“If there’s no socialising, there’s no need for flowers. We’re effectively looking at two months of non-trading,” Ian Ross, managing director of Flora Export SA tells the BBC.

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However, many more businesses across the African continent have a focus on importing rather than exporting, flying in goods from China and India and reselling them at a higher price.

Latest data from British property consultancy and estate agency Knight Frank shows that transport costs represent between 50-75% of the retail price of goods sold in Africa.

“People want to get rich quickly, so the fastest way is to import goods and charge a high markup – many successful people have done this,” explains Alex Demissie, managing director of Africa Rising, a business consultancy based in Cologne that advises international companies on entering African markets.

“They do have pride for their countries [and homegrown products], but if there’s a lot of hassle, people will always use the easiest way to make money.”

The pandemic has unfortunately disrupted this business model, and it has opened the eyes of African entrepreneurs to the reality that local manufacturing needs to become a priority.

“Supply chains have become longer and more complicated, and hence more vulnerable,” says Andrew Alli, chief executive of Southbridge, a pan-African consulting advisory and financial services firm.

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For example, rubber might be produced in Africa, but it is then exported to China to make personal protective equipment (PPE) like masks, which are then shipped to Europe, he explains, rather than African firms just making the masks themselves for sale.

But this is changing now – Africa Rising has seen a new trend of businesses trying to import more machines into African nations to set up local production centres, instead of importing finished products.

“This is a very positive development for small and mid-sized companies – international firms who are investing in African countries are actively looking for local components that they can use in their factories on site,” says Mr Demissie.

“We see a trend of diasporas returning to their countries to produce goods for these big international companies, such as making zippers for clothing firms.

“Supply chains are moving closer to these factories. At the end of the day, this is what will be creating jobs and making things more successful in the future.”

Improving regional supply chains

The other reason African entrepreneurs have historically depended on imports from China and India is that even if you can find someone to make the goods you want to sell in the region, current cross-border supply chains still leave much to be desired.

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It is too expensive to import goods from neighbouring nations, says Mr Demissie, so smaller firms simply don’t bother.

South Africa, Morocco and Egypt have sophisticated supply chains similar to those of developed countries, but the rest of the continent is still trailing far behind, due to weak infrastructure.

“It takes too long at customs to bring in the goods. Some of these nations are facing similar obstacles to Southeast Asian countries and China at the beginning of the 1980s,” says Mr Demissie.

But efforts are being made gradually to improve transport networks in some nations.

Investments made by Chinese firms in Ethiopia and Kenya over the last three years have greatly improved rail connectivity, making it much easier to import and export goods, and the establishment of special economic zones in Ethiopia, Ghana and Nigeria are helping these countries to start local production centres.

Mr Demissie says that coronavirus lockdown has “accelerated” a change in mindset amongst African entrepreneurs, and firms are already coming up with unique “indigenous” ways to solve Africa’s supply chain problems, like Ethiopian Airlines or Kenya Airways.

New supply chain solutions

Ethiopian Airlines is currently Africa’s largest air passenger carrier. Started in 1945, the state-owned airline flies to 100 international destinations, as well as 21 domestic routes across the continent, and it also has an air freight service.

Ethiopian Airlines boss Tewolde GebreMariam told the BBC recently that he does not expect the government to bail the airline out, and to that end the airline has decided to focus on providing even more freight cargo deliveries, both internationally and across the continent, delivering everything from fresh produce to medications and PPE.

“It is a very tough challenge but we think we can survive with our cargo business,” he says.

Kenya Airways is also now considering wide-bodied passenger carriers to bolster its cargo shipments, converting four of its wide-bodied aircrafts into cargo freight aeroplanes.

On the day the BBC visited, Kenya Airways ground staff were loading 40 tonnes of fresh-cut flowers and fruits and vegetables into a Boeing 787 Dreamliner destined for London, with the cargo placed on top of seats.

Nigerian motorcycle transit app-based platform startup Max, which already operates in 10 West African cities, is a solution unique to the continent that has also ended up benefiting from the coronavirus lockdown.

“One of the outcomes of the pandemic is that with people stuck at home and not able to move around, they’ve had to find ways to get their essentials delivered to their doorsteps, which has been beneficial to us and has driven the growth of our logistics and last-mile delivery services,” says Max Nigeria’s chief financial officer Betrand Njoya.

“We expect that we’ll be in a position to grow the size of our network to more than 5,000 drivers within the next 12-18 months.”

Supply chains in many African nations are still not very good, and the African Development Bank (ADB) estimates that the continent would need $90-$130bn of investment in infrastructure per annum in order to get the region to where it needs to be.

That is a tough figure to get to, but Mr Demissie says that Chinese, Indian, South Korean, Singaporean, Iranian and Russian companies are now pouring some money into improving infrastructure across the continent.

“Africa still has the youngest population of any continent – who is going to make and sell consumer goods for the African consumers coming up?,” he tells the BBC.

“China was very backwards at the end of the 1970s, but people were willing to go and invest because they could see the opportunity, and we’re seeing that in African nations now.”

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UK holidaymakers could be able to travel to most of Western Europe this summer without having to quarantine.

Ministers are finalising plans for a series of “travel corridors” that will mean people arriving into the UK will not need to self-isolate.

Participating countries could include France, Italy, Spain, Greece, Belgium, Germany, Norway, the Netherlands, Turkey and Finland – but not Portugal.

Restrictions for these countries are expected to be lifted in early July.

Sweden is also unlikely to be on the list because the infection rate there is higher than in the UK.

But work is ongoing to see if a travel corridor is possible with Australia.

• What would this mean for your holiday plans? Email:

A travel corridor would mean that two people travelling in both directions between two countries would not have to self-isolate after they travel.

Three-week review

The UK’s quarantine rules will remain in place for people arriving from other countries and it’s thought that might be the case for some destinations throughout the summer.

The government has previously said that the quarantine would be reviewed every three weeks and 29 June marks the end of the first three-week period.

The first travel corridors could come into force on 4 July, although that date is by no means confirmed.

Transport Secretary Grant Shapps had indicated there would be an announcement on Monday.

But the BBC understands that initial details could be unveiled this weekend.

What are the current quarantine rules?

• People arriving in the UK should drive their own car to their destination, where possible, and once there they must not use public transport or taxis
• Arrivals must not go to work, school, or public areas, or have visitors – except for essential support. They are also not allowed to go out to buy food, or other essentials, where they can rely on others
• Those arriving in England, Wales and Northern Ireland could face a fine of £1,000 if they fail to self-isolate for the full 14 days, while they face a £480 fine in Scotland. The maximum fine for repeat offenders in Scotland is £5,000.

For more on the rules click here.

Anyone arriving from the Republic of Ireland, the Channel Islands or the Isle of Man does not have to complete a form or enter quarantine upon arrival in the UK.

There are also exemptions for workers in some industries such as road haulage and medical professionals who are providing essential care.

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The travel industry has been vocal in its criticism of the government’s quarantine rules, warning that the isolation period will deter visitors and put jobs at risk. Some airlines were in the early stages of legal action.

The manufacturing industry has also highlighted that fewer flights will restrict imports and exports, which will have a knock-on effect for the freight industry, as well as hampering the recovery of some businesses.

Despite criticism from businesses, Home Secretary Priti Patel said that the measures were “proportionate” and being implemented “at the right time” when they came into effect on 8 June.

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The US has threatened new trade tariffs on beer, chocolate and olives from the European Union, as part of a long-running row over subsidies to planemaker Airbus.

The US Trade Representative said it was considering duties on 30 products worth $3.1bn (£2.5bn) in trade every year.

It has already put 15% to 25% tariffs on $7.5bn worth of other EU goods as part of the dispute.

The EU warned it would damage firms on both side of the Atlantic.

UK Trade Minister Liz Truss also criticised the move, saying that “tit-for-tat tariffs between the EU and the US is simply harming businesses on both sides of the Atlantic”.

The row centres on EU subsidies given to Airbus before 2004, which Washington says created an unfair advantage over the US aircraft manufacturer Boeing.

• Tariffs to increase on aircraft after subsidy row
• Cheese, Chardonnay and cashmere hit by US tariffs

Last year, the World Trade Organization (WTO) ruled the subsidies were illegal and allowed the US to levy tariffs on EU goods, including aircraft, wines and cheese.

But it is now considering a parallel case involving illegal support for Boeing, which could see the EU imposing duties later this year.

The US said pastry and cakes, gin, cashmere clothes and hardware products could all be in the firing line for new tariffs, affecting exporters across the continent.  

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In a statement the EU said Washington was going beyond what was allowed by the WTO.

“It creates uncertainty for companies and inflicts unnecessary economic damage on both sides of the Atlantic,” it added.

“This is particularly the case as companies are now trying to overcome the economic difficulties in the aftermath of the Covid-19 crisis.”

‘Suffered enough’

Since 2017, the US has been embroiled in a damaging trade war with China, which it accuses of unfair trade practices and intellectual property theft. However, it has also trained it fire on allies including the EU.

Before last year’s tariffs over Airbus, the Trump administration had imposed duties on EU steel and aluminium – spurring Brussels to tax iconic US products such as denim jeans and motorcycles.

Mr Trump has also threatened duties on European cars, a particular concern to Germany.

US-levied tariffs are paid by US businesses, which in turn may pass those costs on to consumers. The Distilled Spirits Council of the United States said its members had been hit hard by the Airbus-Boeing spat.

“EU and US distilled spirits companies have suffered enough as a result of this trade war. The longer these disputes go unresolved, the greater the threat of even more tariffs on our industry.”

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Two of the UK’s biggest government outsourcers have agreed to merge their support services arms, creating a business employing almost 80,000.

Mitie Group said it would buy the facilities management arm of rival Interserve for £271m.

The deal will help Mitie gain scale in the UK’s huge outsourcing industry at a time when others are struggling to cope with the coronavirus crisis.

Both firms serve clients such as the NHS and the Ministry of Defence.

The deal comes at a time when the government is relying heavily on outsourced services providers in its response to the coronavirus crisis.

Both Mitie and Interserve are involved with the NHS Nightingale hospitals, built specially to treat Covid-19 patients, while Mitie has been hired to run 11 Covid-19 drive-in regional testing centres.

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Mitie said the deal would help it to cut costs at a time when clients are cutting back on discretionary spending.

Boss Phil Bentley said: “This will be a transformative acquisition, expanding the scale and footprint of our business to create the UK’s largest facilities management company and accelerate the delivery of Mitie’s long-term technology-led vision.

“The transaction will better balance our public and private sector divisions, driving greater returns from the investments we have made in technology and customer service over the past three years.”

In results published along with the announcement, Mitie said its operations had been less affected by the UK’s lockdown than initially feared, with revenue in April and May down just 12%.

However, the firm said it would cancel its final dividend for the year to save cash and raise £201m by issuing new shares.

For Interserve, the merger gives it a chance to pay down its debts, give cash to its shareholders and stabilise its finances, its chairman, Alan Lovell, said.

The firm, which runs Ministry of Defence training centres and cleaning contracts for Network Rail, has been trying to turn itself around after being rescued from administration last year.

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Chemical firm Bayer is to pay up to $10.9bn (£8.8bn) to settle cancer claims linked to its Roundup weedkiller.

The glyphosate-based product has been subject to about 125,000 lawsuits over its allegedly carcinogenic effects.

New York-based law firm Weitz & Luxenberg says it has reached a settlement on behalf of almost 100,000 people.

Bayer denies any wrongdoing but said the payout would end “uncertainty”.

Roundup was originally launched by US firm Monsanto, which bought by Bayer in 2018.

Since its introduction more than four decades ago, it has become known as the world’s most popular weedkiller,

As part of the settlement, Bayer will pay as much as $9.6bn to resolve outstanding claims, and set aside a further $1.25bn to deal with any future action, the company said in a statement on its website.

“It has been a long journey, but we are very pleased that we’ve achieved justice for the tens of thousands of people who, through no fault of their own, are suffering from Non-Hodgkin Lymphoma after using a product Monsanto assured them was safe,” Robin Greenwald, Practice Group Chair, Environmental Pollution and Consumer Protection at Weitz & Luxenberg, said in a statement.

Up to $5bn of the agreed payout will be released this year, with a further $5bn paid in 2021. Bayer said an agreement had not yet been reached for about 25% of the outstanding claims.

“First and foremost, the Roundup settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end,” wrote Werner Baumann, chief executive of Bayer.

He repeated the company’s view that the science indicates “Roundup does not cause cancer, and therefore, is not responsible for the illnesses alleged in this litigation”.

Bans on glyphosate

The German chemical giant bought Monsanto for $63bn two years ago and immediately faced legal battles over the herbicide.

In August 2018, a California court issued the first ruling linking Roundup to cancer, awarding claimants substantial compensation.

In their lawsuits, users blame Roundup and its active ingredient glyphosate for their non-Hodgkin’s lymphoma and other cancers.

Glyphosate is the active ingredient in many weedkillers, although the science about its safety is still far from conclusive. Some countries have banned herbicides that contain glyphosate while others continue to use them.

Bayer denies glyphosate is a carcinogen, a position backed by the US Environmental Protection Agency.

In addition to the Roundup compensation, Bayer will also pay about $820m to settle cases related to water pollution from the use of the now-banned toxic chemical compound polychlorinated biphenyl (PCB).

On top of this, another $400m will be paid by Bayer to settle allegations that its dicamba-based herbicide caused damage to crops. Dicamba has also now been banned in America.

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Qantas will axe 6,000 workers in a bid to stay afloat through the coronavirus pandemic, the airline says.

The cuts equate to about a fifth of the airline’s workforce prior to the Covid-19 crisis. In March, it furloughed more than 80% of its staff.

Australia’s national carrier said the collapse in global air travel had devastated revenues.

Last week, the Australian government said its border would most likely remain closed into next year.

It prompted Qantas to cancel all international flights until late October, except for those to New Zealand.

On Thursday, chief executive Alan Joyce said the airline expected smaller revenues in the next three years, forcing it to become a smaller operation to survive.

“The actions we must take will have a huge impact on thousands of our people,” he said in a statement.

“But the collapse in billions of dollars in revenue leaves us little choice if we are to save as many jobs as possible, long term.”

Coronavirus and air travel:

• Virus drives airlines to ‘worst’ year on record
• How safe is it to get on a plane?

Mr Joyce added that Qantas, and its budget subsidiary Jetstar, would continue to extend a furlough for about 15,000 workers “as we wait for the recovery we know is coming”.

Australia has flattened its virus curve faster than other nations, meaning demand for domestic flights has returned and is expected to fully recover by 2022.

But international demand at that time is forecast to be half of what it was, the airline said.

The airline also plans to raise A$1.9bn (£1.05bn; $1.3bn) in equity – its first such move in 10 years – to bring in new funds and help “accelerate” its recovery.

Other short-term savings will be found by grounding up to 100 planes, including its A380 fleet, and deferring the purchase of new planes, it said.

Decisions offer insight on Australia border question

Simon Atkinson, BBC News in Sydney

Australia’s borders remain pretty much shut in and out – apart from returning citizens or for passengers with exceptional circumstances. And the comments by Qantas today are telling.

By grounding most of its international fleet “for at least the next year”, the airline is clearly not expecting international borders to open up in a meaningful way until at least June 2021.

Should the much talked-about trans-Tasman bubble between Australia and New Zealand open up, Qantas will doubtless be part of that.

But for non-Australians hoping to visit family abroad – or for Aussies eyeing a holiday to Bali – there’s no need to pack the passport for a while yet.

Of course today the biggest thoughts go to the 6,000 or so Qantas staff who are losing their jobs, and the 15,000 employees who remain stood down.

Mr Joyce is hopeful about half of that latter group will be back helping the airline run domestic routes by the end of the year on the back of ramped-up demand to fly around this vast country. That hinges on Australia’s states opening borders to allow free travel.

And that depends on Australia keeping Covid-19 well under control – so outbreaks like the one we’re seeing right now in Melbourne do not become the norm.

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The airline said its massive loyalty programme – which has 13 million members or around half Australia’s population – would be its best hope of recovery while borders remain closed.

Australia’s other large carrier, Virgin Australia, slumped into voluntary administration in April and is currently undergoing a sale process.

• Virgin Australia collapses into administration

The International Air Transport Association (IATA) – the peak body for airlines – has warned that global airline revenue has seen a 55% decline on 2019 levels. IATA says it will take more than three years for global travel to return to 2019 levels.

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The US Defense Department has determined that 20 top Chinese firms, including Huawei, are either owned by or backed by the Chinese military.

The list, seen by US media, features video surveillance firm Hikvision, China Telecoms, China Mobile and AVIC.

The determination could lay the groundwork for new US financial sanctions against the firms.

It comes as the US has pressured other countries, including the UK, to bar Huawei for national security reasons.

The White House and Huawei have been approached by the BBC for comment.

Under US law, the Defense Department is required to track firms “owned or controlled” by China’s People’s Liberation Army that are active in the US.

The Pentagon has been under pressure in recent months from lawmakers of both the Democrats and Republican parties to publish and update the list.

Policy reviews urged by senators

In November, US senators Tom Cotton and Chuck Schumer wrote a letter to Secretary of Commerce Wilbur Ross, asking for an update on reviews of US policy that are mandated by the Export Control Reform Act of 2018 and the 2019 National Defense Authorization Act.

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In the letter, the senators emphasised their concerns about the danger of exporting critical US technologies to companies with Chinese ties.

They also questioned why the Commerce Department had been slow to complete export-control reviews mandated by the two acts.

The senators stressed that reviews should be conducted to assess whether the Chinese Communist Party had been stealing US technology with military applications, as well as whether it had been enlisting Chinese corporations to harness emerging civilian technologies for military purposes.

“What is the status of this review and implementation of the results? Will this review determine specific sectors of the US economy that the Chinese are targeting for espionage and forced technology-transfer efforts? Will you modify the scope of controls for military end uses and end-users in China? Will you make the results of this review public?,” wrote Mr Cotton and Mr Schumer.

“We urge you to conduct these mandatory reviews as quickly and thoroughly as possible. Thank you for your time and attention to this important matter of national security.”

The White House already taken several steps against Huawei and other Chinese firms, including barring US companies from selling them certain technology without permission. The administration has also said its trade war with China, which resulted in billions of dollars worth of tariffs, was a response to theft of US trade secrets.

But it has faced calls by some in Washington to act more aggressively.

Huawei has contested US claims against it as “unsubstantiated allegations”.

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CrossFit owner Greg Glassman has sold his fitness company, after stepping down as chief following outcry over remarks he made about George Floyd.

The comments, in which he asked why he should mourn for Mr Floyd, had prompted athletes, gyms and sportswear firms to cut ties with the business.

Incoming owner Eric Roza, a tech executive and co-founder of a successful CrossFit gym, said he would be “working hard to rebuild bridges”.

Terms of the deal were not disclosed.

The value of the Crossfit business, which is based on a branded exercise regimen focused on high intensity workouts, has previously been estimated at about $4bn (£3.1bn). It is affiliated with about 13,000 gyms in 158 countries worldwide.

“In the past weeks, divisive statements and allegations have left many members of our community struggling to reconcile our transformative experiences in the local box with what we’ve been reading online,” said Mr Roza, a former Oracle executive who is now working for US venture capitalists General Catalyst.

“My view is simple: Racism and sexism are abhorrent and will not be tolerated in CrossFit.”

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In early June, Mr Glassman had courted controversy by responding to a public health body on Twitter that was saying racism was a public health issue.

Mr Glassman tweeted: “It’s FLOYD-19”, an apparent reference to the coronavirus.

He followed it up with a second tweet saying: “Your failed model quarantined us and now you’re going to model a solution to racism? George Floyd’s brutal murder sparked riots nationally.”

He also called an affiliate “delusional” for questioning why CrossFit had been silent on the killing in Minneapolis.

Hours before posting the fateful tweets, Mr Glassman had told gym owners on a private Zoom call that was leaked to reporters: “We’re not mourning for George Floyd – I don’t think me or any of my staff are.

“Can you tell me why I should mourn for him? Other than that it’s the white thing to do.”

What happened to CrossFit?

The comments prompted affiliate gyms to drop CrossFit branding and were rebuked by athletes, as well as Adidas-owned Reebok, which said it was ending its partnership with the brand. The backlash set off further reports that alleged incidents of sexism at the firm.

In a statement this month announcing his retirement, Mr Glassman acknowledged that he had “created a rift in the CrossFit community and unintentionally hurt many of its members”.

He added: “I cannot let my behaviour stand in the way of HQ’s or affiliates’ missions. They are too important to jeopardise.”

On Wednesday, in its announcement of the new owner, CrossFit shared a statement from Mr Glassman, which said it was “time” for him to move on.

“The world has changed but the magnificent human machine, the proven benefits of CrossFit, and its market opportunity remain unchanged,” he said.

Mr Glassman’s retirement was the latest corporate fallout from the protests set off by George Floyd’s death in the hands of police, which have reignited discussions of racism and prompted many firms to speak out.

More on George Floyd’s death