21:37 01/07/2015
Abuja - Nigeria should merge its debt-laden airlines and create a
national carrier in partnership with a global airline to boost revenue
and create jobs, a ruling party strategy report seen by Reuters on
Wednesday shows.
Muhammadu Buhari, who was sworn in as president
of Africa's top oil producer and biggest economy on May 29, is
considering recommendations in the strategy document produced by a
19-member committee from his All Progressives Congress (APC) party.
The
report may influence policy decisions by Buhari, who was elected on an
anti-corruption ticket and has vowed to recover billions of dollars
allegedly stolen by officials. He has, however, been criticised for not
naming a cabinet yet and party officials say it may not happen until
September.
Three years ago, Asset Management Corporation of
Nigeria (AMCON), a state-backed "bad bank" established in 2009, took on
more than 132 billion naira ($663 million) of debts from 12 Nigerian
airlines including the biggest carrier, Arik, and Aero.
The
APC strategy document says the aviation ministry should create a
national airline "in partnership with a global airline", which would
involve "merging all airlines currently with AMCON", to serve as a West
and Central African hub.
The
report, submitted to Buhari about two weeks ago, says the proposals
would lead to "increased revenue, reduce capital flight, expand the
local aviation industry and create more employment opportunities due to
the scale created".
British billionaire Richard Branson set up
domestic and international carrier Virgin Nigeria in 2000, but pulled
out in 2010 in frustration at what he said was interference by
politicians and regulators.
The airline he created, which was
later rebranded Air Nigeria, closed in 2012 after collapsing under about
35 billion naira of debt which left it unable to pay staff, a former
finance director of the company told Reuters at the time.
The APC
strategy report also proposes upgrading the airport in the capital Abuja
by building a second runway, as a possible way to increase passenger
numbers.
The report says airline operators should be required to
have a minimum of five planes, rather than three now, and capital
requirements should be increased to 2.5 billion naira for a domestic
carrier and 5 billion for an international one.
News, Events, Entertainment, Lifestyle, Fashion, Beauty, Inspiration and yes... Gossip! *Wink*
Thursday, 2 July 2015
Ambode elated at confirmation as Lagos governor
06:55 02/07/2015
Abuja - The Lagos State Government has welcomed the confirmation of Akinwunmi Ambode as the governor.
Ambode said the ruling of the State Election Petition Tribunal, headed by Justice Mohammed Sirajo, on Wednesday, as a reaffirmation of the mandate given to him by the people of Lagos State.
“I am elated at the ruling of the tribunal which is an affirmation of my victory at the polls. On April 11, 2015, the people of Lagos spoke with their votes about continuity and that is what the tribunal has just reaffirmed,” said Ambode.
“The task ahead requires concerted efforts from everyone. I urge all my opponents to put the election struggles behind them and in the spirit of sportsmanship join hands with me to take Lagos to the next level” Ambode said.
The Election Tribunal on Wednesday struck out the petition filed against the election of Ambode of the All Progressives Congress by the People’s Democratic Party candidate, Jimi Agbaje, following a preliminary objection filed by the counsel to the APC Candidate, Wole Olanipekun.
The winner polled 14 696 votes to his closest rival’s 11 292.
He added that it was needless in the first place for the PDP to have petitioned the election result which was adjudged to be free, fair and credible.
“Now that the right thing has been done which of course the people expected, we should all come together above partisanship and move the State forward,” Ambode said.
Abuja - The Lagos State Government has welcomed the confirmation of Akinwunmi Ambode as the governor.
Ambode said the ruling of the State Election Petition Tribunal, headed by Justice Mohammed Sirajo, on Wednesday, as a reaffirmation of the mandate given to him by the people of Lagos State.
“I am elated at the ruling of the tribunal which is an affirmation of my victory at the polls. On April 11, 2015, the people of Lagos spoke with their votes about continuity and that is what the tribunal has just reaffirmed,” said Ambode.
“The task ahead requires concerted efforts from everyone. I urge all my opponents to put the election struggles behind them and in the spirit of sportsmanship join hands with me to take Lagos to the next level” Ambode said.
The Election Tribunal on Wednesday struck out the petition filed against the election of Ambode of the All Progressives Congress by the People’s Democratic Party candidate, Jimi Agbaje, following a preliminary objection filed by the counsel to the APC Candidate, Wole Olanipekun.
The winner polled 14 696 votes to his closest rival’s 11 292.
He added that it was needless in the first place for the PDP to have petitioned the election result which was adjudged to be free, fair and credible.
“Now that the right thing has been done which of course the people expected, we should all come together above partisanship and move the State forward,” Ambode said.
Australia prison riot ends with police assault
06:55 02/07/2015
Sydney - Three hundred prisoners who rioted in a Melbourne jail ahead of a smoking ban were back in their cells on Wednesday, prison authorities said, after police stormed the compound with tear gas and water cannon.
Four injured prisoners, two with dog bites, were taken to hospital after police teams moved in at 03:30 am (17:30 GMT on Tuesday), about fifteen hours after the riot began.
Prisons across the state are in lockdown with inmates confined to their cells.
Victoria State Corrections Commissioner Jan Shuard told reporters the smoking ban, which began on Wednesday, was probably the cause of the riot, but an investigation would be held.
The state government said the ban would be enforced despite the riot, and smoking was now unlawful in Victorian jails.
Meanwhile, prison staff in the larger state of New South Wales are bracing for similar disturbances when a smoking ban in prisons starts there on August 10.
About 85% of prisoners smoke, and state governments across Australia have brought in bans for health reasons.
Prisoners advocate Brett Collins of Justice Action said the smoking ban was causing enormous stress and tension inside jails.
He told broadcaster ABC the smoking ban was a "denial of their rights" and it was like taking away prisoners' wages as cigarettes were like currency inside jails.
"It shows a lack of concern for these people as human beings and a lack of appreciation that jail is their home," Collins said.
Sydney - Three hundred prisoners who rioted in a Melbourne jail ahead of a smoking ban were back in their cells on Wednesday, prison authorities said, after police stormed the compound with tear gas and water cannon.
Four injured prisoners, two with dog bites, were taken to hospital after police teams moved in at 03:30 am (17:30 GMT on Tuesday), about fifteen hours after the riot began.
Prisons across the state are in lockdown with inmates confined to their cells.
Victoria State Corrections Commissioner Jan Shuard told reporters the smoking ban, which began on Wednesday, was probably the cause of the riot, but an investigation would be held.
The state government said the ban would be enforced despite the riot, and smoking was now unlawful in Victorian jails.
Meanwhile, prison staff in the larger state of New South Wales are bracing for similar disturbances when a smoking ban in prisons starts there on August 10.
About 85% of prisoners smoke, and state governments across Australia have brought in bans for health reasons.
Prisoners advocate Brett Collins of Justice Action said the smoking ban was causing enormous stress and tension inside jails.
He told broadcaster ABC the smoking ban was a "denial of their rights" and it was like taking away prisoners' wages as cigarettes were like currency inside jails.
"It shows a lack of concern for these people as human beings and a lack of appreciation that jail is their home," Collins said.
Young Greeks flee abroad as crisis deepens
06:55 02/07/2015
Athens - What does the future look like for young people in crisis-hit Greece, where years of hardship and sky-high unemployment were followed this week by bank closures? The answer: self-imposed exile.
"I don't see a future in Greece," sighs Dani Iordake. The 21-year-old, who proudly sports self-styled tattoos on his arms, was forced to drop out of university to help his mother pay the bills.
"It's a beautiful country... [but] I couldn't imagine living here and struggling every day," he said.
With youth unemployment at nearly 50% and a breakdown in negotiations with Greece's international creditors heralding further financial woes, many of Iordake's contemporaries are packing their bags.
Over 200 000 Greeks have quit the country since the financial crisis began in 2010, according to Endeavor Greece, a local chapter of an entrepreneurial promotional group. They have been driven away by a dearth of jobs, pitiful wages, endemic corruption and lack of meritocracy.
Thirty-two year old Christos Pennos left in 2013 because of a scarcity of opportunities in the scientific field, and managed to snap up a post as a university researcher in Norway.
"My brother lives in Spain, my best friend in Germany. I have a lot of friends in Britain, Norway, Sweden, the Netherlands, Belgium, France and even in Poland," he said.
At first he had only planned to spend two or three years in Norway, but now believes he'll stay longer - though he admits "I really miss my friends and family, and most of all the Greek sun and Greek food".
Prime Minister Alexis Tsipras and his radical left Syriza party were elected on the promise to help those worst hit by years of austerity, but instead have been forced to impose capital controls and close banks.
'Situation is awful'
Friends Marilena and Josie, 22 and 33, catch up over a beer and falafel sandwich, which they eat on a bench in the street while they discuss their future.
As a massage therapist, Josie cannot find full-time work and has been forced in the past to take baby-sitting and cleaning jobs to make ends meet.
"Before the crisis, I was paid $1 440 net. Today, I don't get even half that, gross."
Her boyfriend, a Syrian refugee she met while volunteering for a migrants association, is currently in the Netherlands and she's thinking of going to live with him.
Marilena may also pack up and head to Germany, where her brother lives. He signed up with the military there and earns a 2 000-euro salary, with practically no expenses to pay, she said.
The decision to leave her homeland is not one she will take lightly, however. "It's an option, not a must."
Unemployed civil engineer Giannis Grigoriou does not have the luxury of waiting the crisis out, and is planning to immigrate to an Arab country because he thinks he'll have more luck finding work.
"The situation is awful. Had I known this four to five years ago I would have studied to be a chef or hairdresser, which have more appeal in this country," he said.
Emigration increasing
Greek emigration, particularly among the young, "is not a new phenomenon, but it increased considerably during the crisis," said Lois Labrianidis, economic geography professor at Thessaloniki University.
Labrianidis has been called in to help at the economy ministry, and wants more done to boost investments and develop high-value industries to encourage young graduates to stay in Greece.
He hopes the government will be able to renegotiate with the country's creditors, saying: "If we don't have to pay more money, we'll have more money to put in the economy".
"These days are crucial for Greece, but especially for the young," he said.
Athens - What does the future look like for young people in crisis-hit Greece, where years of hardship and sky-high unemployment were followed this week by bank closures? The answer: self-imposed exile.
"I don't see a future in Greece," sighs Dani Iordake. The 21-year-old, who proudly sports self-styled tattoos on his arms, was forced to drop out of university to help his mother pay the bills.
"It's a beautiful country... [but] I couldn't imagine living here and struggling every day," he said.
With youth unemployment at nearly 50% and a breakdown in negotiations with Greece's international creditors heralding further financial woes, many of Iordake's contemporaries are packing their bags.
Over 200 000 Greeks have quit the country since the financial crisis began in 2010, according to Endeavor Greece, a local chapter of an entrepreneurial promotional group. They have been driven away by a dearth of jobs, pitiful wages, endemic corruption and lack of meritocracy.
Thirty-two year old Christos Pennos left in 2013 because of a scarcity of opportunities in the scientific field, and managed to snap up a post as a university researcher in Norway.
"My brother lives in Spain, my best friend in Germany. I have a lot of friends in Britain, Norway, Sweden, the Netherlands, Belgium, France and even in Poland," he said.
At first he had only planned to spend two or three years in Norway, but now believes he'll stay longer - though he admits "I really miss my friends and family, and most of all the Greek sun and Greek food".
Prime Minister Alexis Tsipras and his radical left Syriza party were elected on the promise to help those worst hit by years of austerity, but instead have been forced to impose capital controls and close banks.
'Situation is awful'
Friends Marilena and Josie, 22 and 33, catch up over a beer and falafel sandwich, which they eat on a bench in the street while they discuss their future.
As a massage therapist, Josie cannot find full-time work and has been forced in the past to take baby-sitting and cleaning jobs to make ends meet.
"Before the crisis, I was paid $1 440 net. Today, I don't get even half that, gross."
Her boyfriend, a Syrian refugee she met while volunteering for a migrants association, is currently in the Netherlands and she's thinking of going to live with him.
Marilena may also pack up and head to Germany, where her brother lives. He signed up with the military there and earns a 2 000-euro salary, with practically no expenses to pay, she said.
The decision to leave her homeland is not one she will take lightly, however. "It's an option, not a must."
Unemployed civil engineer Giannis Grigoriou does not have the luxury of waiting the crisis out, and is planning to immigrate to an Arab country because he thinks he'll have more luck finding work.
"The situation is awful. Had I known this four to five years ago I would have studied to be a chef or hairdresser, which have more appeal in this country," he said.
Emigration increasing
Greek emigration, particularly among the young, "is not a new phenomenon, but it increased considerably during the crisis," said Lois Labrianidis, economic geography professor at Thessaloniki University.
Labrianidis has been called in to help at the economy ministry, and wants more done to boost investments and develop high-value industries to encourage young graduates to stay in Greece.
He hopes the government will be able to renegotiate with the country's creditors, saying: "If we don't have to pay more money, we'll have more money to put in the economy".
"These days are crucial for Greece, but especially for the young," he said.
Libya peace talks stall again
06:55 02/07/2015
Tripoli - Libya's rival governments will not return to peace talks this week after rebel forces on Wednesday rejected the latest proposal, defying threats the UN Security Council would impose sanctions on anyone who stands in the way of a deal.
The National General Congress parliament in Tripoli, which was seized by rebel forces last year, said it would consult for a week on the new draft, ruling out returning to the talks due to begin in Morocco on Thursday.
"The amendments introduced in the latest text submitted by the UN did not include [our own] proposals," it said in a statement released late on Wednesday.
Libya Dawn, the coalition of militias that controls the capital, also rejected the latest peace plan as "treason, because it sanctions the creation of a fascist dictatorship under the auspices of the UN".
Dozens of people protested against the new draft in front of the CGN's headquarters in Tripoli on Wednesday, burning pictures of the UN envoy leading the peace talks Bernardino Leon, according to an AFP journalist on the scene.
Libya's leadership is split between Libya Dawn forces, who seized the capital last year, and the internationally recognised government that was forced to flee to Tobruk, in the northeast of the country.
The factions are facing international pressure to form a national unity government and end years of chaos in the war-torn country, which has become a hotbed of jihadist groups and a starting point for migrant smugglers sending people across the Mediterranean to Europe.
UN sanctions
The UN Security Council on Wednesday warned that "there can be no military solution to the crisis in Libya" and urged all sides to "sign the proposal presented by the UN support mission in Libya in the coming days".
A national unity government "is in the interests of the Libyan people and their future, in order to end Libya's political, security and institutional crises and to confront the rising threat of terrorism," it added.
The 15-member council said it was "prepared to sanction those who threaten Libya's peace, stability and security or that undermine the successful completion of its political transition".
In Tobruk, the seat of Libya's internationally recognised government, lawmaker Osama Mohamed Faraj al-Chaaf said parliament was ready "in principle to endorse" the text, according to a news agency close to the authorities.
Previous bid blocked
A previous bid by Britain, France, Spain and the United States to step up pressure on the sides with sanctions was blocked by Russia and China.
The United Nations has been brokering talks between Libya's various groups with a view to establishing a government that could confront the threat from Islamic State extremists, who have gained a foothold in several towns.
A surge of jihadist violence across the region, including the killing of 38 people, most of them British tourists, at a Tunisian beach resort on Friday, has prompted mounting international pressure for a deal.
Libyan factions agreed during Geneva talks in January to set up a national unity government to restore stability that has been shattered since the 2011 fall of Muammar Gaddafi.
Tripoli - Libya's rival governments will not return to peace talks this week after rebel forces on Wednesday rejected the latest proposal, defying threats the UN Security Council would impose sanctions on anyone who stands in the way of a deal.
The National General Congress parliament in Tripoli, which was seized by rebel forces last year, said it would consult for a week on the new draft, ruling out returning to the talks due to begin in Morocco on Thursday.
"The amendments introduced in the latest text submitted by the UN did not include [our own] proposals," it said in a statement released late on Wednesday.
Libya Dawn, the coalition of militias that controls the capital, also rejected the latest peace plan as "treason, because it sanctions the creation of a fascist dictatorship under the auspices of the UN".
Dozens of people protested against the new draft in front of the CGN's headquarters in Tripoli on Wednesday, burning pictures of the UN envoy leading the peace talks Bernardino Leon, according to an AFP journalist on the scene.
Libya's leadership is split between Libya Dawn forces, who seized the capital last year, and the internationally recognised government that was forced to flee to Tobruk, in the northeast of the country.
The factions are facing international pressure to form a national unity government and end years of chaos in the war-torn country, which has become a hotbed of jihadist groups and a starting point for migrant smugglers sending people across the Mediterranean to Europe.
UN sanctions
The UN Security Council on Wednesday warned that "there can be no military solution to the crisis in Libya" and urged all sides to "sign the proposal presented by the UN support mission in Libya in the coming days".
A national unity government "is in the interests of the Libyan people and their future, in order to end Libya's political, security and institutional crises and to confront the rising threat of terrorism," it added.
The 15-member council said it was "prepared to sanction those who threaten Libya's peace, stability and security or that undermine the successful completion of its political transition".
In Tobruk, the seat of Libya's internationally recognised government, lawmaker Osama Mohamed Faraj al-Chaaf said parliament was ready "in principle to endorse" the text, according to a news agency close to the authorities.
Previous bid blocked
A previous bid by Britain, France, Spain and the United States to step up pressure on the sides with sanctions was blocked by Russia and China.
The United Nations has been brokering talks between Libya's various groups with a view to establishing a government that could confront the threat from Islamic State extremists, who have gained a foothold in several towns.
A surge of jihadist violence across the region, including the killing of 38 people, most of them British tourists, at a Tunisian beach resort on Friday, has prompted mounting international pressure for a deal.
Libyan factions agreed during Geneva talks in January to set up a national unity government to restore stability that has been shattered since the 2011 fall of Muammar Gaddafi.
Bus falls off bridge, kills 10 in South Korea
07:55 02/07/2015
Beijing - A bus carrying a group of South Koreans fell off a highway bridge in northeastern China, killing 10 of them, officials said Thursday.
The accident took place on Wednesday after the vehicle left the north-eastern Chinese city of Ji'an and was about halfway to its destination of Dandong, which borders North Korea, the official Xinhua News agency said.
The Ji'an government said on its official microblog that 10 people died, all of them South Korean. Earlier state media reports had said two of the victims were Chinese.
South Korean officials said 26 South Koreans were on the bus as part of a 140-person delegation of mainly South Korean government employees.
They were in China to tour historical sites, including places where Korean independence fighters resisted Japan's colonial rule before the end of World War II, according to officials from the South Korean Ministry of Government Administration and Home Affairs.
The bus was part of a six-bus caravan, South Korean officials said.
The bus was said to be resting on its top in shallow water under the bridge.
Beijing - A bus carrying a group of South Koreans fell off a highway bridge in northeastern China, killing 10 of them, officials said Thursday.
The accident took place on Wednesday after the vehicle left the north-eastern Chinese city of Ji'an and was about halfway to its destination of Dandong, which borders North Korea, the official Xinhua News agency said.
The Ji'an government said on its official microblog that 10 people died, all of them South Korean. Earlier state media reports had said two of the victims were Chinese.
South Korean officials said 26 South Koreans were on the bus as part of a 140-person delegation of mainly South Korean government employees.
They were in China to tour historical sites, including places where Korean independence fighters resisted Japan's colonial rule before the end of World War II, according to officials from the South Korean Ministry of Government Administration and Home Affairs.
The bus was part of a six-bus caravan, South Korean officials said.
The bus was said to be resting on its top in shallow water under the bridge.
More than 100 dead as militants, Egyptian army clash in Sinai
07:55 02/07/2015
Ismailia - Egypt's army said on Wednesday more than 100 militants and 17 soldiers were killed after simultaneous assaults on military checkpoints in North Sinai, in the deadliest fighting in years in the restive province.
After a day of fighting, which involved F-16 jets and Apache helicopters, the army said it would not stop its operations until it had cleared the area of all "terrorist concentrations".
By late Wednesday, an army spokesperson said the situation in North Sinai was "100% under control". Security sources and witnesses later said aerial bombardments on militant targets had resumed.
ISIS’s Egyptian affiliate, Sinai Province, had claimed responsibility, saying it attacked more than 15 security sites and carried out three suicide bombings.
The militants' assault, a significant escalation in violence in the peninsula that lies between Israel, the Gaza Strip and the Suez Canal, was the second high-profile attack in Egypt this week. On Monday, a bomb killed the prosecutor-general in Cairo.
It raised questions about the government's ability to contain an insurgency that has already killed hundreds of police and soldiers.
The insurgents want to topple the Cairo government and have stepped up their campaign since 2013, when then-army chief Abdel Fattah al-Sisi removed President Mohammed Morsi of the Muslim Brotherhood after mass protests against his rule.
Sisi, who regards the Brotherhood as a threat to national security, has since overseen a harsh crackdown on Islamists.
An army statement said the fighting had been concentrated in the towns of Sheikh Zuweid and Rafah and that the militants used car bombs and various weapons.
Of the 17 soldiers killed, four were officers, and 13 more soldiers were wounded, the statement said.
Some security sources put the death toll for army and police much higher.
The army spokesman told state television that a number of militants had been arrested. He also posted pictures on his official Facebook page which he said showed the bodies of scores of militants. They were dressed in fatigues.
Security sources said the militants had planned to lay siege to the town of Sheikh Zuweid. "But we have dealt with them and broke the siege," one of the sources said.
Booby traps at Sheikh Zuweid
Earlier, security sources said militants had surrounded a police station in Sheikh Zuweid and planted bombs around it.
The militants also planted bombs along a road between Sheikh Zuweid and al-Zuhour army camp and seized two armoured vehicles, weapons and ammunition, the sources said.
Suleiman al-Sayed, a 49-year-old Sheikh Zuweid resident told Reuters earlier on Wednesday that he was not allowed to leave his home while clashes were ongoing. He said he had glimpsed "five Land Cruisers with masked gunmen waving black flags."
Witnesses and security sources also heard two explosions in the nearby town of Rafah, which borders Gaza. The sources said all roads leading to Rafah and Sheikh Zuweid were shut down. The interior ministry in the Gaza Strip, run by the Islamist Hamas group, reinforced its forces along the border with Egypt.
"It is a sharp reminder that despite the intensive counter-terrorism military campaign in the Sinai over the past six months, IS ranks are not decreasing - if anything they are increasing in numbers as well as sophistication, training and daring," Aimen Dean, a former al Qaeda insider who now runs a Gulf-based security consultancy, said in a note.
State of emergency
ISIS had urged its followers to escalate attacks during the Islamic holy month of Ramadan which started in mid-June, though it did not specify Egypt as a target. In April, the army extended by three months a state of emergency imposed in parts of Sinai.
Besides bombardments in the region, the army has destroyed tunnels into the Palestinian-ruled Gaza Strip and created a security buffer zone in northern Sinai. It is also digging a trench along the border with Gaza to deter smuggling.
Under the terms of Egypt's 1979 peace accord with Israel, the Sinai is largely demilitarised. But Israel has regularly agreed to Egypt bringing in reinforcements to tackle the Sinai insurgency, and one Israeli official signalled there could be further such deployments following Wednesday's attacks.
"This incident is a game-changer," an official told Reuters on condition of anonymity.
Sisi's government does not distinguish between the now-outlawed Brotherhood, which says it is committed to peaceful activism, and other militants.
The courts have sentenced hundreds of alleged Brotherhood supporters to death in recent months. Morsi himself, and other senior Brotherhood figures, also face the death penalty.
The cabinet, which met in the Police Academy for security reasons on Wednesday, approved a draft anti-terrorism law, which it said would "achieve quick and just deterrence".
"Any terrorist or criminal attacks that aim to sow chaos, will be confronted," the cabinet said, citing the interior minister.
In Cairo, the interior ministry said security forces killed nine leading members of the Muslim Brotherhood in an apartment in a western suburb after the men opened fire on them.
The interior ministry said the group were holding a meeting to plot attacks. It said some of those killed had been convicted in court cases. The Brotherhood denied the group was armed and said in a statement the killing was a turning point that could lead to repercussions by the "oppressed".
"The assassination will drive the situation down an extremely dangerous slope and toward a total explosion."
Ismailia - Egypt's army said on Wednesday more than 100 militants and 17 soldiers were killed after simultaneous assaults on military checkpoints in North Sinai, in the deadliest fighting in years in the restive province.
After a day of fighting, which involved F-16 jets and Apache helicopters, the army said it would not stop its operations until it had cleared the area of all "terrorist concentrations".
By late Wednesday, an army spokesperson said the situation in North Sinai was "100% under control". Security sources and witnesses later said aerial bombardments on militant targets had resumed.
ISIS’s Egyptian affiliate, Sinai Province, had claimed responsibility, saying it attacked more than 15 security sites and carried out three suicide bombings.
The militants' assault, a significant escalation in violence in the peninsula that lies between Israel, the Gaza Strip and the Suez Canal, was the second high-profile attack in Egypt this week. On Monday, a bomb killed the prosecutor-general in Cairo.
It raised questions about the government's ability to contain an insurgency that has already killed hundreds of police and soldiers.
The insurgents want to topple the Cairo government and have stepped up their campaign since 2013, when then-army chief Abdel Fattah al-Sisi removed President Mohammed Morsi of the Muslim Brotherhood after mass protests against his rule.
Sisi, who regards the Brotherhood as a threat to national security, has since overseen a harsh crackdown on Islamists.
An army statement said the fighting had been concentrated in the towns of Sheikh Zuweid and Rafah and that the militants used car bombs and various weapons.
Of the 17 soldiers killed, four were officers, and 13 more soldiers were wounded, the statement said.
Some security sources put the death toll for army and police much higher.
The army spokesman told state television that a number of militants had been arrested. He also posted pictures on his official Facebook page which he said showed the bodies of scores of militants. They were dressed in fatigues.
Security sources said the militants had planned to lay siege to the town of Sheikh Zuweid. "But we have dealt with them and broke the siege," one of the sources said.
Booby traps at Sheikh Zuweid
Earlier, security sources said militants had surrounded a police station in Sheikh Zuweid and planted bombs around it.
The militants also planted bombs along a road between Sheikh Zuweid and al-Zuhour army camp and seized two armoured vehicles, weapons and ammunition, the sources said.
Suleiman al-Sayed, a 49-year-old Sheikh Zuweid resident told Reuters earlier on Wednesday that he was not allowed to leave his home while clashes were ongoing. He said he had glimpsed "five Land Cruisers with masked gunmen waving black flags."
Witnesses and security sources also heard two explosions in the nearby town of Rafah, which borders Gaza. The sources said all roads leading to Rafah and Sheikh Zuweid were shut down. The interior ministry in the Gaza Strip, run by the Islamist Hamas group, reinforced its forces along the border with Egypt.
"It is a sharp reminder that despite the intensive counter-terrorism military campaign in the Sinai over the past six months, IS ranks are not decreasing - if anything they are increasing in numbers as well as sophistication, training and daring," Aimen Dean, a former al Qaeda insider who now runs a Gulf-based security consultancy, said in a note.
State of emergency
ISIS had urged its followers to escalate attacks during the Islamic holy month of Ramadan which started in mid-June, though it did not specify Egypt as a target. In April, the army extended by three months a state of emergency imposed in parts of Sinai.
Besides bombardments in the region, the army has destroyed tunnels into the Palestinian-ruled Gaza Strip and created a security buffer zone in northern Sinai. It is also digging a trench along the border with Gaza to deter smuggling.
Under the terms of Egypt's 1979 peace accord with Israel, the Sinai is largely demilitarised. But Israel has regularly agreed to Egypt bringing in reinforcements to tackle the Sinai insurgency, and one Israeli official signalled there could be further such deployments following Wednesday's attacks.
"This incident is a game-changer," an official told Reuters on condition of anonymity.
Sisi's government does not distinguish between the now-outlawed Brotherhood, which says it is committed to peaceful activism, and other militants.
The courts have sentenced hundreds of alleged Brotherhood supporters to death in recent months. Morsi himself, and other senior Brotherhood figures, also face the death penalty.
The cabinet, which met in the Police Academy for security reasons on Wednesday, approved a draft anti-terrorism law, which it said would "achieve quick and just deterrence".
"Any terrorist or criminal attacks that aim to sow chaos, will be confronted," the cabinet said, citing the interior minister.
In Cairo, the interior ministry said security forces killed nine leading members of the Muslim Brotherhood in an apartment in a western suburb after the men opened fire on them.
The interior ministry said the group were holding a meeting to plot attacks. It said some of those killed had been convicted in court cases. The Brotherhood denied the group was armed and said in a statement the killing was a turning point that could lead to repercussions by the "oppressed".
"The assassination will drive the situation down an extremely dangerous slope and toward a total explosion."
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