Obama Hails 'Cliff' Deal, Warns of Next Fiscal Fight

Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.

"This is one step in the broader effort to strengthen our economy for everybody," Obama said.

Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."

But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.

"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."

An hour after his remarks, Obama boarded Air Force One to rejoin his family in Hawaii, where they have been since before Christmas.

AP Photo/Charles Dharapak

'Fiscal Cliff' Negotiations: Congress Reaches Agreement Watch Video

House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.

A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.

The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.

The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.

But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.

The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.

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Syria starts 2013 with aerial strikes and clashes

BEIRUT (Reuters) - Syrians woke on New Year's Day to countrywide aerial bombardment, while President Bashar al-Assad's forces and rebels fighting to topple him clashed on the outskirts of the capital.

Residents of Damascus entered the new year to the sound of artillery hitting southern and eastern districts that form a rebel-held crescent on the outskirts of the capital, the center of which is still firmly under government control.

In the center, soldiers manning checkpoints fired celebratory gunfire at midnight, causing alarm in a city where streets were largely deserted.

"How can they celebrate? There is no 'Happy New Year'," Moaz al-Shami, an opposition activists who lives in the capital's central Mezzeh district, said over Skype, his voice trembling with anger.

He said rebel fighters attacked one checkpoint in the district of Berzeh early on Tuesday. Opposition groups said mortar bombs hit the southwest suburb of Daraya, where the army launched a military offensive on Monday to retake the battered district.

Assad's air force pounded Damascus's eastern suburbs, as well as rebel-held areas in the second city Aleppo, and several rural towns and villages, opposition activists said.

An estimated 45,000 people have been killed in the revolt, which started in early 2011 with peaceful protests demanding democratic reforms but turned into an armed uprising after months of attacks on protesters by security forces.

A resident of the central city of Homs, who asked to remain anonymous, said shells had landed on the Old City early on Tuesday.

Homs lies on the strategic north-south highway and parts of the ancient city have been leveled during months of clashes. Government forces ousted rebels from the city early last year but militants have slowly crept back in.

"The Old City is under siege. There is shelling from all sides," he said.

The opposition-linked Syrian Observatory for Human Rights, a British-based monitoring group, reported 160 people killed on the final day of 2012, including at least 37 government troops. The group's reports cannot be verified.

BOMBARDMENT

The civil war in Syria has become the longest and deadliest of the conflicts that rose out of the uprisings that swept through the Arab world over the past two years.

Many Sunni Muslims, the majority in Syria, back the rebellion, while Assad, who hails from the Shi'ite-derived Alawite minority sect, is backed by some minorities who fear revenge if he falls. His family has ruled Syria harshly since his father seized power in a coup 42 years ago.

Assad's forces have lately relied more on aerial and artillery bombardment, rather than infantry. Residential areas where rebels base themselves have been targeted, killing civilians unable to flee. Schools and queues of people buying bread have been hit.

Rebels have taken swathes of the north and the east but have struggled to hold cities, complaining that they are defenseless against Assad's Soviet-built air force.

A year ago, many diplomats and analysts predicted Assad would leave power in 2012. But he has proved resilient and none of his inner circle have defected. He still largely retains control of his armed forces.

Diplomatic efforts to end the war have faltered, with the rebels refusing to negotiate unless Assad leaves power and him pledging to fight until death.

Most Western and Arab states have called for him to leave power. He is supported by Russia and Shi'ite Iran.

In the final days of 2012, international mediator Lakhdar Brahimi called on countries to push the sides to talk, saying Syria faced a choice of "hell or the political process".

One Damascus resident, who asked not to be identified for security reasons, said the usual new year's eve crowds were absent from the increasingly isolated capital.

"There was hardly anyone on the streets, no cars, no pedestrians. Most restaurants, cafes and bars were empty," she said. Some young people gathered at three bars in the old city.

"There was music but nobody was dancing. They just sat there with a drink in their hands and smoking. I don't think I saw one person smile," she said. The midnight gunfire caused alarm.

"It was very scary. No one knew what was going on. People got very nervous and started making phone calls. But then I discovered that at least on my street, the gunfire was celebratory."

(Editing by Peter Graff and Alison Williams)

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Surge in demand for pet hotel service during year-end holidays

SINGAPORE: Pet hotels are becoming a hit with owners who want to ensure that their furry friends are in good hands while they are away.

Some hotels said demand went up by about 30 per cent last year, compared with 2011 while occupancy rates are almost always full during the year-end holidays.

From massages to soothe aching joints to customised spa sessions that come with a clay pack wrap of nutrients and minerals, the pets are enjoying a break of their own at pet-wellness centres, such as pet hotel, Petopia, while their owners are away.

Petopia's marketing director Richard Wee said: "They find this place more like a playroom. We have one case of a customer's dog that after they left the hotel and came back for grooming one day, the dog ran all the way back to the playroom to just look for his friends to spend time with during the hotel stay."

Petopia can take in up to 50 animals and rooms are usually booked a few months in advance.

Pet owners fork out between S$75 and S$158 for a night's stay.

"We are looking at three different crowds. The year-end holiday goers, they clear their annual leave. We have families who bring the children overseas during school holidays and a large number of expatriates who return home for the year-end season," said Mr Wee.

Safety and security are the top concerns of owners, along with separation pangs.

Mr Wee said: "We have customers who choose not to go away for many years because they are afraid of not having someone to look after their pets well."

To allay such concerns, the hotel installed webcams in the building for owners to track their pets' movements.

Er Yanshan, a pet owner, said: "It's better than just leaving your pet at home with no one to look after it, so it's a good idea."

What's more alarming is when owners abandon their pets.

The Society for the Prevention of Cruelty to Animals (SPCA) said more than 100 animals were given up at the centre in December 2012 by owners who wanted to go away.

That is twice the number, compared with the other months of the same year.

Mr Lee Yao Huang, who is animal care officer at SPCA, said: "Some of them might decide to give it to SPCA, or they just abandoned it at their HDB area or grass patch near their place.

"We actually give them some help by advising them to put it on our re-homing notice on our SPCA website or they can put up brochures and notices on the vet's clinics or supermarkets on their notice boards."

And for those who don't want to fork out too much at the pet hotel, another way is to get friends or relatives to play pet-sitter.

- CNA/fa

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Cut down my security: BJP leader to Mumbai police chief

MUMBAI: Leader of opposition in Maharashtra Legislative Council, Vinod Tawade today urged the Mumbai police commissioner to withdraw eight of the ten policemen deployed for his security saying they could be better used for the security of citizens.

Tawade, a prominent BJP leader, met police chief Satyapal Singh at the Police Commissionerate here and urged him to withdraw his security with immediate effect.

Several policemen are deployed for security of politicians and social figures. If a major chunk of these personnel are drawn for maintaining law and order, then there would a decline in crime, he said.

The recent attacks on senior citizens and women, murder of advocate Pallavi Purkayastha in Wadala and killing of a girl in Chetna College had forced him to take a decision on withdrawing his security, he said.

Responding to Tawade's request for withdrawing security, police commissioner Satyapal Singh said, "We would review threat perception to the BJP leader and accordingly would take a call on withdrawing his security cover.

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Clinton receiving blood thinners to dissolve clot

WASHINGTON (AP) — Doctors treating Secretary of State Hillary Rodham Clinton for a blood clot in her head said blood thinners are being used to dissolve the clot and they are confident she will make a full recovery.

Clinton didn't suffer a stroke or neurological damage from the clot that formed after she suffered a concussion during a fainting spell at her home in early December, doctors said in a statement Monday.

Clinton, 65, was admitted to New York-Presbyterian Hospital on Sunday when the clot turned up on a follow-up exam on the concussion, Clinton spokesman Phillipe Reines said.

The clot is located in the vein in the space between the brain and the skull behind the right ear. She will be released once the medication dose for the blood thinners has been established, the doctors said.

In their statement, Dr. Lisa Bardack of the Mount Kisco Medical Group and Dr. Gigi El-Bayoumi of George Washington University said Clinton was making excellent progress and was in good spirits.

Clinton's complication "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said Dr. Larry Goldstein, a neurologist who is director of Duke University's stroke center. He is not involved in Clinton's care.

The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull. It's how the blood gets back to the heart," Goldstein said.

Blood thinners usually are enough to treat the clot and it should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, Goldstein said.

Clinton returned to the U.S. from a trip to Europe, then fell ill with a stomach virus in early December that left her severely dehydrated and forced her to cancel a trip to North Africa and the Middle East. Until then, she had canceled only two scheduled overseas trips, one to Europe after breaking her elbow in June 2009 and one to Asia after the February 2010 earthquake in Haiti.

Her condition worsened when she fainted, fell and suffered a concussion while at home alone in mid-December as she recovered from the virus. It was announced Dec. 13.

This isn't the first time Clinton has suffered a blood clot. In 1998, midway through her husband's second term as president, Clinton was in New York fundraising for the midterm elections when a swollen right foot led her doctor to diagnose a clot in her knee requiring immediate treatment.

Clinton had planned to step down as secretary of state at the beginning of President Barack Obama's second term. Whether she will return to work before she resigns remained a question.

Democrats are privately if not publicly speculating: How might her illness affect a decision about running for president in 2016?

After decades in politics, Clinton says she plans to spend the next year resting. She has long insisted she had no intention of mounting a second campaign for the White House four years from now. But the door is not entirely closed, and she would almost certainly emerge as the Democrat to beat if she decided to give in to calls by Democratic fans and run again.

Her age — and thereby health — would probably be a factor under consideration, given that Clinton would be 69 when sworn in, if she were elected in 2016. That might become even more of an issue in the early jockeying for 2016 if what started as a bad stomach bug becomes a prolonged, public bout with more serious infirmity.

Not that Democrats are willing to talk openly about the political implications of a long illness, choosing to keep any discussions about her condition behind closed doors. Publicly, Democrats reject the notion that a blood clot could hinder her political prospects.

"Some of those concerns could be borderline sexist," said Basil Smikle, a Democratic strategist who worked for Clinton when she was a senator. "Dick Cheney had significant heart problems when he was vice president, and people joked about it. He took the time he needed to get better, and it wasn't a problem."

It isn't uncommon for presidential candidates' health — and age — to be an issue. Both in 2000 and 2008, Sen. John McCain, R-Ariz., had to rebut concerns he was too old to be commander in chief or that his skin cancer could resurface.

Two decades after Clinton became the first lady, signs of her popularity — and her political strength — are ubiquitous.

Obama had barely declared victory in November when Democrats started zealously plugging Clinton as their strongest White House contender four years from now, should she choose to take that leap.

"Wouldn't that be exciting?" House Democratic leader Nancy Pelosi declared in December. "I hope she goes. Why wouldn't she?"

Even Republicans concede that were she to run, Clinton would be a force to be reckoned with.

"Trying to win that will be truly the Super Bowl," Newt Gingrich, the former House Speaker and 2012 GOP presidential candidate, said in December. "The Republican Party today is incapable of competing at that level."

Americans admire Clinton more than any other woman in the world, according to a Gallup poll released Monday — the 17th time in 20 years that Clinton has claimed that title. And a recent ABC News/Washington Post poll found that 57 percent of Americans would support Clinton as a candidate for president in 2016, with just 37 percent opposed. Websites have already cropped up hawking "Clinton 2016" mugs and tote bags.

Beyond talk of future politics, Clinton's three-week absence from the State Department has raised eyebrows among some conservative commentators who questioned the seriousness of her ailment after she canceled planned Dec. 20 testimony before Congress on the deadly attack on the U.S. diplomatic mission in Benghazi, Libya.

Clinton had been due to discuss with lawmakers a scathing report she had commissioned on the attack. It found serious failures of leadership and management in two State Department bureaus were to blame for insufficient security at the facility. Clinton took responsibility for the incident before the report was released, but she was not blamed. Four officials cited in the report have either resigned or been reassigned.

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Associated Press writer Ken Thomas in Washington and AP Chief Medical Writer Marilynn Marchione in Milwaukee contributed to this report.

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Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called fiscal cliff with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," he added.

The bill extends Bush-era tax cuts permanently for individuals making less than $400,000 per year and couples making less than $450,000.

The steep "sequester" budget cuts scheduled to go into effect with the New Year would be postponed for two months.

The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year.

Officials also decided at the last minute to use the measure to prevent a $900 pay raise for lawmakers due to take effect this spring.

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

The failure of a deal to pass Congress by Jan. 1 technically triggers an income tax hike on all Americans and automatic spending cuts, although lawmakers could still prevent a tax hike by making retroactive any legislation that passes in the weeks ahead, experts said.

The deal at hand will not entirely solve the problem of the "fiscal cliff," however. Indeed, it could set up a new showdown on the same spending cuts in two months that would be amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

In addition to extending current tax rates for households making $450,000 or less, the latest plan would raise the estate tax from 35 to 40 percent for estates larger than $5 million; and prevent the alternative minimum tax from hammering millions of middle-class workers.

Capital gains taxes would rise to 20 percent from 15 percent.

The deal would also extend for one year unemployment insurance benefits set to expire today for 2 million people, and avert a steep cut to Medicare payments for doctors.

"Working though the night and throughout the day we've reached an agreement with Sen. McConnell," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that."

He said he is "disappointed" they were not able to make the grand bargain and that more work needs to be done in the future.

"But we tried. If we did nothing, the threat of a recession is very real," Reid concluded.

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-Ky., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with McConnell.

House Democratic leader Nancy Pelosi issued a statement saying that when legislation clears the Senate, "I will present it to the House Democratic caucus."

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Assad's forces push to retake Damascus suburb

AMMAN (Reuters) - Heavy fighting raged on the outskirts of Damascus on Monday as elite troops backed by tanks tried to recapture a strategic suburb from rebels in one of the largest military operations in that district in months, opposition activists said.

Five people, including one child, died from army rocket fire that hit Daraya, the activists said. Daraya is one of a series of interconnected Sunni Muslim suburbs that ring Syria's capital and have been at the forefront of the 21-month-old revolt against President Bashar al-Assad.

"This is the biggest attack on Daraya in two months. An armored column is trying to advance but it being held (back) by the Free Syrian Army," said Abu Kinan, an opposition activist in the area, referring to a rebel group.

He said that tens of thousands of civilians had fled Daraya during weeks of government assault but that 5,000 remained, along with hundreds of rebels. Daraya is located near the main southern highway leading to the Jordanian border 85 kms (50 miles) to the south.

Activists said the military is trying to push back rebels who have been slowly advancing from the outskirts of Damascus to within striking distance of central districts inhabited by Assad's Alawite minority sect.

Assad's forces have mostly relied on aerial and artillery bombardment, rather than infantry. Rebels have been able take several outlying towns and have clashed with government troops near Damascus International Airport, halting flights by foreign airlines.

Another activist in Damascus with connection to rebels, who did not want to be named, said Daraya has been a firing position for rebels using mortars and homemade rockets. From it, they have been able to hit a huge presidential complex located at a hilltop overlooking Damascus and target pro-Assad shabbiha militia in an Alawite enclave nearby known as Mezze 86.

"So far they have missed the palace but they are getting better. I think the regime has realized that it no longer can afford to have such a threat so close by, but it has failed to overrun Daraya before," he said.

(Reporting by Khaled Yacoub Oweis; Editing by Oliver Holmes and Peter Graff)

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Taiwan upgrades dozens of fighter jets

TAIPEI: Taiwan plans to complete the first stage of an ambitious plan to upgrade its fighter jet force by the end of 2013, in an effort to maintain a credible deterrent against China into the 2030s.

Some 60 of Taiwan's Indigenous Defence Fighters (IDFs) will be upgraded and ready for deployment within 12 months, according to a report submitted to parliament by the defence ministry.

The aircraft will be equipped with enhanced radar, avionics and electronic warfare capabilities, along with a locally-produced cluster bomb, according to the report.

The remainder of the country's 127-strong fleet of IDFs will be upgraded by 2017, the report said.

Taiwan deployed the IDFs in 1992 and the upgrade, which kicked off in 2009, will extend the service life of the aircraft for about another two decades according to the report, which was submitted to parliament last week and made available to AFP by a legislator on Monday.

The United States last year agreed to equip Taiwan's 146 ageing US-made F-16 A/B jets with new technologies in a US$5.85 billion deal that irked China.

China has repeatedly threatened to invade Taiwan should the island declare formal independence, prompting Taipei to develop more advanced weapons or seek to buy them from abroad.

- AFP/xq

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I know my limitations: Chidambaram on PM candidature

NEW DELHI: "I know my limitations. And I live and conduct myself according to my limitations." This was the response of finance minister P Chidambaram today when asked to comment on DMK chief M Karunanidhi's remarks that he was potential prime ministerial candidate.

"I don't know whether I should take your question very seriously. But let me give you a very serious answer. I know my limitations. And I live and conduct myself according to my limitations," he told reporters here.

Yesterday, Karunanidhi had supported a suggestion by actor Kamal Hassan that the finance minister was a potential prime ministerial candidate.

Chidambaram said if the reporters were expecting a light-hearted comment then "I tell you this: I know that some of you think I am foolish. But I am not so foolish as you think."

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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