By Mabvuto Banda
LILONGWE, May 26 (Reuters) - Police in Malawi have begun interrogating former president Bakili Muluzi in connection with an alleged plot to topple the government, its home affairs minister said on Monday.
Muluzi, the opposition United Democratic Front's candidate in the 2009 presidential election, was arrested at the main airport in the capital Lilongwe on Sunday after returning from a trip to Britain.
"Muluzi is being interrogated by police as we speak. He has been put under house arrest. His house has been searched, but I can't disclose what we have found to the public," Home Affairs Minister Ernest Malenga told Reuters.
A defence lawyer confirmed the raid on the Malawian politician's home in Blantyre and said Muluzi was confined to the premises.
"They have searched the house and found nothing, and we are still waiting for them to charge formally," defence lawyer Fahad Assani said.
Five members of Muluzi's UDF and three army generals were arrested last week on suspicion of being part of a plot to oust President Bingu wa Mutharika and put Muluzi into power. They have been released on bail.
An arrest warrest was issued at the time for Muluzi.
The UDF said that at least 10 of its supporters had been arrested and several injured in Lilongwe for protesting against Muluzi's arrest. He had been scheduled to address a public rally there on Sunday.
Muluzi remains popular in the impoverished southern African nation for ending the rule of longtime strongman Hastings Kamuzu Banda in 1994 and paving the way for democracy. He held power until 2004 when he was replaced by wa Mutharika.
The two, however, have fallen out over the president's anti-corruption drive, which has targetted some UDF members, including Muluzi. Wa Mutharika quit the UDF to form the Democratic Progressive Party.
Muluzi was briefly investigated for corruption in 2006. (Editing by Paul Simao and Richard Balmforth)
((paul.simao@thomsonreuters.com; +27 11 775 3165; Reuters Messaging: paul.simao.reuters.com@reuters.net)) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/)
Keywords: MALAWI POLITICS/MULUZI
BRUSSELS, May 26 (Reuters) - The European Commission has asked the United States to provide details of U.S. subsidies to biodiesel producers as it weighs up a request by European producers to hit U.S. imports with punitive duties.
"The Commission is in contact with the United States to clarify certain details regarding U.S. production," an European Union diplomat said on Monday.
"This is an initial prerequisite to any move the Commission may take in this area," the diplomat said, speaking on condition of anonymity.
European biodiesel producers in April asked the Commission to impose duties on biodiesel imports from the United States on the grounds they broke international trade rules.
The European Biodiesel Board said U.S. subsidies for "B99" biodiesel -- which is blended with mineral diesel -- breached World Trade Organisation rules and threatened the growing international trade in biodiesel.
The National Biodiesel Board, which represents U.S. producers, accused EU producers of hypocrisy, saying they benefit from discriminatory fuel specifications in the bloc.
(Reporting by William Schomberg, Editing by Peter Blackburn) ((william.schomberg@reuters.com; +32 2 287 6832; Reuters Messaging: william.schomberg.reuters.com@reuters.net))
Keywords: EU USA/BIOFUELS
JOHANNESBURG, May 26 (Reuters) - The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Monday.
- - - -
GLOBAL MARKETS
Asian stocks fell on Monday, with regional shares outside Japan hitting a 1-month low, as investors feared rising inflation and sluggish U.S. economic growth would seriously dent consumer demand in the region's biggest export market. For a story, please double click on [ID:nSP293123]
SOUTH AFRICAN MARKETS
South African stocks fell sharply on Friday, dragged down by mining shares, while the rand eased in a fairly quiet session as players paused for next week's slew of key economic data.
The Johannesburg exchange's Top 40 index <.JTOPI> dived 2.28 percent to 30,602.35 points while the broader All-share index <.JALSH> fell 2.08 percent to 32,542.39 points. For Friday's South African financial markets closing report, double click on [ID:nL23590015]
JD GROUP <JDGJ.J>
South African furniture retailer JD Group will release its interim results on Monday. The company has said it expects its headline earnings per share to be lower between 44 and 49 percent due to an accounting basis change.
GOLD <XAU=>
Gold opened higher on Monday, continuing last week's rally as the dollar weakened in thin activity, with the U.S. and U.K. markets closed for national holidays. For the latest precious metals report, double click on [GOL/]
WALL STREET
* A large bribes-for-business probe at German engineering firm Siemens AG <SIEGn.DE> shifts into higher gear Monday when former executive Reinhard Siekaczek becomes the first company official to go on trial, possibly laying the groundwork for similar proceedings against higher-ranking managers.
* A NASA spacecraft plunged into the atmosphere of Mars and landed in the Red Planet's northern polar region on Sunday to begin 90 days of digging in the permafrost to look for evidence of the building blocks of life.
* A strong aftershock hit Sichuan province, injuring dozens, leveling homes and rattling buildings as far away as Beijing. China raised the initial earthquake's death toll above 62,000.
For the New York stock market report, double click on [.NnL26189518]
- - - -
Some of the main stories out of the South African press:
BUSINESS DAY
- ANC pleads for peace, tolerance in townships: Communities warn ruling party that votes cannot be taken for granted.
- No changes in immigration policy - President Thabo Mbeki: President speaks of "shameful" attacks but offers no reasons or solutions.
- MTN, India's Reliance Communications "in talks".
- Key data expected to be gloomy.
- Buildinmg industry heads for a slow down.
BUSINESS REPORT
- Spell it out, regulator tells South Africa's power utility Eskom: Electricity price application panel dismisses spin.
- Bad news looms in big week for data.
- Bharti calls off merger talks with MTN.
THE STAR
- Crackdown on the agitators: Intelligence operatives working in hotspots assist police raids.
- We won't let anything happen to the foreigners.
- Sorry. Cape Town residents ask refugees to return. (Reporting by Gugulakhe Lourie)
((gugu.lourie@thomsonreuters.com; +27 11 775 3162))
(For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/)
Keywords: MARKETS SAFRICA FACTORS/
(Adds details, background, quotes)
By Joseph Guyler Delva
PORT-AU-PRINCE, May 26 (Reuters) - Haitian President Rene Preval nominated his longtime friend and adviser Robert Manuel on Sunday to become prime minister of the impoverished Caribbean nation, where the previous government was toppled by food riots in April.
Preval named Manuel in a late-night meeting with the presidents of the Senate and Chamber of Deputies, the lower house in Haiti's parliament. Both chambers must vote on the nomination.
Preval's efforts to establish a stable democracy in Haiti were dealt a heavy blow when violent demonstrations erupted last month over the rapidly escalating cost of living in the poorest country in the Americas.
At least six people were killed in the protests, which spread from the southern city of Les Cayes to the capital, Port-au-Prince, and other towns and cities.
Shortly after the riots, the Senate fired then-Prime Minister Jacques Edouard Alexis. Parliament rejected Preval's first nominee to replace Alexis, Inter-American Development Bank official Ericq Pierre, on May 12.
Manuel, 55, is an architect and a recognized security and law enforcement authority who served as secretary of state for public safety during a portion of Preval's first term as president from 1996 to 2001. He managed Preval's successful election campaign in 2006.
"I believe we need to work together to change this country and I want to make my contribution," Manuel told Reuters following his nomination.
Pierre's candidacy was rejected in a 51-35 vote in the lower house a few days after the Senate approved his nomination. Deputies who voted against him said he had failed to provide proof required under the constitution that he is descended from native-born Haitians.
Lawmakers were expected to begin discussions on the new nominee on Monday.
"The Coalition of Parliamentarians for Progress has set up a meeting tomorrow (Monday) to determine what its position will be," said Levaillant Louis-Jeune, a spokesman for the group of lawmakers that joined to defeat Pierre's nomination.
Haiti has seen little but political upheaval and brutal dictatorship since it threw off French rule in a slave revolt more than 200 years ago.
It stands among a number of poor countries rattled in recent months by violence over escalating food prices blamed on growing demand in Asia, diversion of crops for biofuel, record oil prices and market speculation.
Poor Haitians say the cost of staples such as rice, beans and flour has doubled in the past few months.
Preval, who took office in May 2006, is the only elected Haitian leader to serve a full term and successfully hand over power to a democratically elected successor.
But he has been the subject of increasing criticism for the perceived failure of his government to increase food production and lower living costs.
In his first term, it took Preval 21 months to put a new government in place after then-Prime Minister Rosny Smarth resigned in June 1997.
(Editing by Jim Loney and Todd Eastham)
((jim.loney@thomsonreuters.com; +1 305 810 2688; Reuters Messaging: jim.loney.reuters.com@reuters.net))
Keywords: HAITI GOVERNMENT/
For German four-week diary please click on [DE/DIA]
For German corporate events diary click on [DE/EQUITY]
UPCOMING ECONOMIC INDICATORS
**NO INDICATORS SCHEDULED**
GENERAL / ECONOMIC EVENTS
MONDAY, MAY 26
BERLIN- German Chancellor Angela Merkel speaks at a conference
of the Federation of German Industries (BDI)(1315 GMT)-
BERLIN- German Chancellor Angela Merkel speaks at the spring
conference of NATO Parliamentary Asembly (1800 GMT)-
KOBE, Japan- Final day of G8 environment ministers meeting.-
MUNICH- Trial begins of Reinhard Siekaczek, who worked at
Siemens for almost four decades, accused of expanding a system
of slush funds for bribes to win contracts worldwide and setting
up a network of front firms to allow for the transfer of cash.
--Berlin Newsroom +49 30 2888-5000
Next: DIARY - Germany - to June 24