Mali Tuaregs seize two Islamist leaders fleeing French strikes

KIDAL, Mali (Reuters) - Tuareg rebels in northern Mali said on Monday they had captured two senior Islamist insurgents fleeing French air strikes toward the Algerian border, and France pressed ahead with its bombing campaign against al Qaeda's Saharan desert camps.

Pro-autonomy Tuareg MNLA rebels said they had seized Mohamed Moussa Ag Mohamed, an Islamist leader who imposed harsh sharia law in the desert town of Timbuktu, and Oumeini Ould Baba Akhmed, believed to be responsible for the kidnapping of a French hostage by the al Qaeda splinter group MUJWA.

"We chased an Islamist convoy close to the frontier and arrested the two men the day before yesterday," Ibrahim Ag Assaleh, spokesman for the MNLA, told Reuters from Ouagadougou in Burkina Faso. "They have been questioned and sent to Kidal."

France has deployed 3,500 ground troops, and warplanes and armored vehicles in its three-week-old Operation Serval (Wildcat) in Mali which has broken the Islamists' 10-month grip on northern towns, where they imposed sharia law.

Paris and its international partners want to prevent the Islamists from using Mali's vast desert north as a base to launch attacks on neighboring African countries and the West.

The MNLA, which seized control of northern Mali last year only to be pushed aside by better-armed Islamist groups, regained control of its northern stronghold of Kidal last week when Islamist fighters fled French airstrikes into the nearby desert and rugged Adrar des Ifoghas mountains.

The Tuareg group says it is willing to help the French-led mission by hunting down Islamists. It has offered to hold peace talks with the government in a bid to heal wounds between Mali's restive Saharan north and the black African-dominated south.

"Until there is a peace deal, we cannot hold national elections," Ag Assaleh said, referring to interim Malian President Dioncounda Traore's plan to hold polls on July 31.

Many in the southern capital Bamako - including army leaders who blame the MNLA for executing some of their troops at the Saharan town of Aguelhoc last year - strongly reject any talks.

French special forces took the airport in Kidal on Tuesday, reaching the most northern city previously held by the Islamist alliance. Though the MNLA says it controls Kidal, a Reuters reporter in the town saw a contingent of Chadian troops - part of a U.N.-backed African mission being deployed to help retake northern Mali - backing up French special forces there.

TARGETING REBEL BASES, DEPOTS

French Foreign Minister Laurent Fabius said warplanes were continuing bombing raids on Islamists in Mali's far north to destroy their supply lines and flush them out of remote areas.

"The objective is to destroy their support bases, their depots because they have taken refuge in the north and north-east of the country and can only stay there in the long-term if they have the means to sustain themselves," Fabius said.

"The army is working to stop that," he told French radio.

Jets attacked rebel camps on Sunday targeting logistics bases and training camps used by the al Qaeda-linked rebels near Tessalit, close to the Algerian border.

French President Francois Hollande made a one-day trip to Mali on Saturday, promising to keep troops in the country until the job of restoring government control in the Sahel state was finished. He was welcomed as a savior by cheering Malians.

The rebels' retreat to hideouts in the remote Adrar des Ifoghas mountains - where Paris believes they are holding seven French hostages - heralds a potentially more complicated new phase of France's intervention in its former colony.

"We are still in the same war, but we're entering a new battle," said Vincent Desportes, a French former general and now associate professor at Science-Po university in Paris.

"We will look to gradually wear out and destroy the terrorists that are sheltering in the Ifoghas. It's now a war of intelligence (services), strikes and probably action by special forces in the background."

Hollande said on Saturday that Paris would withdraw its troops from Mali once the landlocked West African nation had restored sovereignty over its territory and a U.N.-backed African military force could take over from the French soldiers.

Drawn mostly from Mali's West African neighbours, this force is expected to number more than 8,000. But its deployment has been badly hampered by shortages of kit and airlift capacity and questions about who will fund the estimated $1 billion cost.

Fabius said French soldiers may soon pull back from Timbuktu. Its residents had celebrated their liberation from the Islamists, who had handed down punishments including whipping and amputation for breaking sharia law.

The rebels also smashed sacred Sufi mausoleums and destroyed or stole some 2,000 ancient manuscripts at the South African-sponsored Baba Ahmed Institute, causing international outcry.

"A withdrawal could happen very quickly," Fabius said. "We're working towards it because we have no desire to stay there for the long-term.

(Additional reporting by John Irish in Paris, Daniel Flynn in Dakar and David Lewis in Timbuktu; Writing by Daniel Flynn; Editing by Pascal Fletcher and Jon Boyle)

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2.2 first-timer applicants for each unit in latest BTO sales exercise

SINGAPORE: Application rates for first-timers rose marginally in the latest Build-To-Order flats sales exercise, the first BTO offering this year.

Applications close at midnight but overall as of 5pm, there were 2.2 first-timers applying for each new unit. This is higher than the 1.8 in the previous exercise in November last year.

It is also the first time since March last year that the application rate for first-timers has gone above two. The application rate then was 2.2.

A total of 3,346 new flats in six BTO projects were offered in the sales exercise.

The projects are in both the mature towns of Ang Mo Kio, Kallang-Whampoa and Tampines as well as in non-mature towns Choa Chu Kang, Hougang and Yishun.

Observers said the increase in first-timer application rates could be due partly to the introduction of the new Parenthood Priority Scheme.

Under the scheme, married couples with children under the age of 16 have priority when they apply for new flats for the first time. 30 per cent of flats are set aside for them.

Earlier, National Development Minister Khaw Boon Wan had revealed that the government has de-linked the prices of new flats sold by HDB from the resale flat market.

This could be contributing to the popularity of BTO flats, particularly those in mature estates, said Chief Executive Officer of PropNex, Mohamed Ismail.

Five-room flats in Ang Mo Kio were the most heavily subscribed.

There are 103 units of five-room flats on offer there. As of 5pm, there were 8.1 first-timer applicants and 91.2 second-timer applicants for each five-room unit in the Ang Mo Kio project.

"We can put it down to two reasons. One is because it is in a mature estate and the location is good. The other reason is that the number of flats (offered) is also low, only 283 (in total). Only five per cent is allocated for second timers, and if there are really a lot of upgraders who want to stay in Ang Mo Kio, naturally the numbers would be high because of the supply, which is low," said Lee Sze Teck, senior manager for research and consultancy at Dennis Wee Group.

There was also strong demand for the project in Tampines. There were 4.9 first-timers and 45.8 second-timers applying for each four-room flat.

- CNA/ir

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Nationwide helpline number to help women in distress

MUMBAI: Women facing an emergency may have access to a nationwide three-digit helpline number and the facility to register an FIR in any police station, regardless of jurisdiction.

The Centre on Monday announced a series of steps to combat crimes against women.

It proposes to install a nationwide three-digit helpline number, like the existing 100 for police access, to respond to all emergency situations.

This will be similar to 911 or 990 Emergency Management Systems in developed countries.

Such a service will be available to subscribers of all telecom service providers as at present there are different telephone numbers being used for responding to different situations or target groups.

The ministry of home affairs in coordination with the department of telecom will, by the end of February 2013, come up with a basic concept note on how the system will be established and how it will operate.

As part of police reforms, action will be taken to provide the facility of registering an FIR in any police station irrespective of jurisdiction for serious crimes, including those committed against women.

The FIR may later be transferred to the concerned police station for investigation.

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Bullying study: It does get better for gay teens

CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.

The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.

The researchers said the same results likely would be found in the United States.

In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.

That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.

In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.

"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."

The study appears online Monday in the journal Pediatrics.

Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.

But the researchers said their results show the situation is more nuanced for young gay men.

In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.

The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.

Savage, who was not involved in the study, agreed.

"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.

Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.

"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.

Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.

"As you grow older, you become more accepting of yourself," Johnson said.

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Online:

Pediatrics: http://www.pediatrics.org

It Gets Better: http://www.itgetsbetter.org

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Former SEAL Killed at Gun Range; Suspect Arrested

A man is under arrest in connection with the killing of two men at an Erath County, Texas, gun range, police said.

One of the victims is former Navy SEAL and "American Sniper" author Chris Kyle.

"We have lost more than we can replace. Chris was a patriot, a great father, and a true supporter of this country and its ideals. This is a tragedy for all of us. I send my deepest prayers and thoughts to his wife and two children," "American Sniper" co-author Scott McEwen said in a statement to ABC News.

ABC affiliate WFAA-TV in Dallas reported that Kyle and a neighbor of his were shot while helping a soldier who is recovering from post traumatic stress syndrome at a gun range in Glen Rose.

The suspect, identified as Eddie Routh, 25, was arrested in Lancaster, Texas, after a brief police chase, a Lancaster Police Department dispatcher told ABC News.

Routh was driving Kyle's truck at the time of his arrest and was held awaiting transfer to Texas Rangers, according to police.

AP Photo/The Fort Worth Star-Telegram, Paul Moseley

Investigators told WFAA that Routh is a former Marine said to suffer from post-traumatic stress syndrome.

Kyle, 39, served four tours in Iraq and was awarded two Silver Stars, five Bronze Stars with Valor, two Navy and Marine Corps Achievement Medals, and one Navy and Marine Corps Commendation.

From 1999 to 2009, Kyle recorded more than 150 sniper kills, the most in U.S. military history.

Travis Cox, the director of FITCO Cares, the non-profit foundation Kyle established, said Kyle's wife Taya and their children "lost a dedicated father and husband" and the country has lost a "lifelong patriot and an American hero."

"Chris Kyle was a hero for his courageous efforts protecting our country as a U.S. Navy SEAL during four tours of combat. Moreover, he was a hero for his efforts stateside when he helped develop the FITCO Cares Foundation. What began as a plea for help from Chris looking for in-home fitness equipment for his brothers- and sisters-in-arms struggling with Post Traumatic Stress Disorder (PTSD) became an organization that will carry that torch proudly in his honor," Cox said in a statement.

After leaving combat duty, became chief instructor training Naval Special Warfare Sniper and Counter-Sniper teams, and he authored the Naval Special Warfare Sniper Doctrine, the first Navy SEAL sniper manual. He left the Navy in 2009.

"American Sniper," which was published last year in 2012, became a New York Times best seller.

The fatal shooting comes after week filled with gun related incidents -- a teen who participated in inaugural festivities was shot to death in Chicago, a bus driver was fatally shot and 5-year-old was taken hostage in Alabama and a Texas prosecutor was gunned outside a courthouse.

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Attackers kill 33 at police HQ in disputed Iraqi city

KIRKUK, Iraq (Reuters) - At least 33 people were killed in the Iraqi city of Kirkuk on Sunday when a suicide bomber detonated a truck packed with explosives outside a police headquarters and gunmen disguised as officers tried to storm the compound.

The blast was the third major attack in weeks in or near the multiethnic city of Arabs, Kurds and Turkmen, at the heart of a dispute between Iraq's central government and the autonomous Kurdistan region.

Police said the bomber triggered the huge blast near a side entrance to the police building, demolishing part of a government office nearby.

"A suicide bomber driving a vehicle packed with explosives hit the entrance of the headquarters and after the blast gunmen in explosive vests attacked with AK47s and grenades, but the guards killed them," a police official said.

Guards and emergency workers dragged bloodied survivors onto stretchers amid the wreckage of the blast, which left a large crater in the street.

Police said 33 were killed, including 12 employees at the government office. But a health official said only 16 bodies were at a hospital morgue and more than 90 were wounded.

The attack comes as insurgents linked to al Qaeda try to inflame sectarian conflict in Iraq, where a power-sharing government split among Shi'ite majority, Sunni and ethnic Kurds has been in crisis since the last U.S. troops left a year ago.

"TWO-FRONT" CRISIS

Shi'ite Prime Minister Nuri al-Maliki is facing mass protests from Sunni Muslims in western provinces calling for him to step down, complaining of marginalization since the fall of Saddam Hussein.

In the north, the premier is also caught in a tense standoff with the country's autonomous Kurdish enclave over control of oil wealth and land along the so-called "disputed territories" where both regions claim control.

Kirkuk, 170 km (100 miles) north of the capital, is at the heart of the dispute. Last year Baghdad and the Kurdistan regional government sent rival forces to towns close to the disputed territories.

Several armed groups are active in Kirkuk, and Sunni Islamist insurgents linked to al Qaeda often attack security forces in an attempt to undermine Maliki's government and stoke sectarian tensions.

Al Qaeda's local wing, Islamic State of Iraq, though weakened after years of war with American troops, has benefited from the inflow of Sunni Islamists and arms into Syria where Sunni rebels are fighting President Bashar al-Assad.

Suicide bomb attacks are the hallmark of the Iraqi al Qaeda wing, and the group claimed responsibility for a suicide bombing that killed a Sunni lawmaker last month in Falluja.

But Kirkuk has also been home to the Naqshbandi army or JRTN, one of several insurgent groups made up of former soldiers and members of Saddam's outlawed Baath party.

Iraqi Arabs, Kurdistan's government and Kirkuk's minority Turkmen all lay claim to the city, known to some as the "Jerusalem of the Kurds" - a reference to its historically disputed status.

Last month a suicide bomber disguised as a mourner killed at least 26 at a funeral at a Shi'ite mosque in the nearby city of Tuz Khurmato, and days earlier a suicide bomber driving a truck killed 25 in an attack on a political party office in Kirkuk.

The level of violence in Iraq is lower than at the height of sectarian slaughter in 2006-2007, when tens of thousands died. But more than 4,400 people were killed last year in attacks and bombings, the first increase in deaths in three years.

(Additional reporting by Omar Mohammed in Kirkuk and Ahmed Rasheed in Baghdad; Writing by Patrick Markey; Editing by Andrew Roche)

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Mass reunion dinner for underprivileged and elderly people

SINGAPORE: Some 1,000 underprivileged and elderly people were treated to a mass reunion dinner on Sunday.

The event, held by Kreta Ayer-Kim Seng Citizens' Consultative Committee, aims to spread festive cheer.

The wet weather did not dampen spirits as guests enjoyed a sumptuous eight-course meal on the F1 race track at the Singapore Flyer.

They were also joined by Member of Parliament Dr Lily Neo for the traditional "lo hei".

They were treated to acrobatic performances as well as songs performed by local and international celebrities.

- CNA/ck

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New rules aim to get rid of junk foods in schools

WASHINGTON (AP) — Most candy, high-calorie drinks and greasy meals could soon be on a food blacklist in the nation's schools.

For the first time, the government is proposing broad new standards to make sure all foods sold in schools are more healthful.

Under the new rules the Agriculture Department proposed Friday, foods like fatty chips, snack cakes, nachos and mozzarella sticks would be taken out of lunch lines and vending machines. In their place would be foods like baked chips, trail mix, diet sodas, lower-calorie sports drinks and low-fat hamburgers.

The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have improved their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.

Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunchrooms also have "a la carte" lines that sell other foods. Food sold through vending machines and in other ways outside the lunchroom has never before been federally regulated.

"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," Agriculture Secretary Tom Vilsack said.

Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools and to 8-ounce portions in elementary schools.

The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.

The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.

Sen. Tom Harkin, D-Iowa, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.

"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.

Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.

The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.

Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.

Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, said surveys by her organization show that most parents want changes in the lunchroom.

"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.

The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.

A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories that kids are consuming at school by pulling out the high-calorie sodas.

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Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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Ala. Standoff: Police Mum About Talks With Suspect

As a police standoff with an Alabama man accused of holding a 5-year-old boy hostage in an underground bunker entered its fifth day, authorities were saying little except that their talks with the 65-year-old loner were continuing through a ventilation pipe.

Negotiators were still trying late Friday to persuade Jimmy Lee Dykes to surrender. Police have said they believe the Vietnam-era veteran fatally shot a school bus driver on Tuesday, and then abducted the boy from the bus and disappeared into the home-made bunker.

While police were mostly staying mum about the delicate negotiations, it fell to neighbors to fill in the blanks about Dykes, described by some as a menacing figure who held anti-government views.

One of Dykes' next-door neighbors said the suspect spent two or three months constructing the bunker, digging several feet into the ground and then building a structure of lumber and plywood, which he covered with sand and dirt.

Neighbor Michael Creel said Dykes put the plastic pipe underground from the bunker to the end of his driveway so he could hear if anyone drove up to his gate. When Dykes finished the shelter a year or so ago, he invited Creel to see it — and he did.

"He was bragging about it. He said, 'Come check it out," Creel said.

He said he believes Dykes' goal with the standoff is to publicize his political beliefs.

Alabama Hostage Standoff: Who Is Jimmy Lee Dykes? Watch Video

Alabama Boy Held Hostage in Underground Bunker Watch Video

Alabama Hostage Standoff: Boy, 5, Held Captive in Bunker Watch Video

"I believe he wants to rant and rave about politics and government," Creel said. "He's very concerned about his property. He doesn't want his stuff messed with."

Police have used a ventilation pipe to the bunker to talk to the man and deliver the boy medication for his emotional disorders, but they have not revealed how often they are in touch or what the conversations have been about. Authorities waited until Friday to confirm the suspect's identity.

While much of what is going on inside the bunker remains a mystery, local officials who have spoken to police or the boy's family have described a small room with food, electricity and a TV. And while the boy has his medication, an official also said he has been crying for his parents.

Meanwhile, Midland City residents held out hope that the standoff would end safely and mourned for the slain bus driver and his family. Candlelight vigils have been held nightly at a gazebo in front of City Hall. Residents prayed, sang songs such as "Amazing Grace" and nailed homemade wooden crosses on the gazebo's railings alongside signs that read: "We are praying for you."

"We're doing any little thing that helps show support for him," said 15-year-old Taylor Edwards said.

Former hostage negotiators said authorities must be cautious and patient as long as they are confident that the boy is unharmed. Ex-FBI hostage negotiator Clint Van Zandt advised against any drastic measures such as cutting the electricity or putting sleeping gas inside the bunker because it could agitate Dykes.

The negotiator should try to ease Dykes' anxieties over what will happen when the standoff ends, and refer to both the boy and Dykes by their first names, he said.

"I want to give him a reason to come out," Van Zandt said,

Police seemed to be following that pattern. At a brief news conference to release a photo of Dykes, they brushed off any questions about possible charges.

"It's way too early for that," said Kevin Cook, a spokesman for the Alabama state troopers.

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Spain's Rajoy says corruption allegations are false

MADRID (Reuters) - Spanish Prime Minister Mariano Rajoy strongly denied on Saturday allegations in the media that he and other leaders of his centre-right People's Party had for years received payments out of a secret slush fund.

"I need only two words: it's false," Rajoy said in a televised address after an extraordinary meeting of party leaders to discuss the allegations.

Rajoy welcomed a full investigation into the affair and said that the party would be fully transparent and that he would publish on the internet all of his tax declarations to clear up the scandal.

Last week El Pais newspaper published extracts from what it said were ledgers maintained by party treasurers to register cash contributions from business leaders that were then distributed to party leaders.

"It is not true that we (in this party) received cash that we hid from tax officials," Rajoy said in the brief speech. He did not take questions from the media.

Dozens of police in riot gear guarded PP headquarters in central Madrid on Saturday, cutting off neighboring streets. A small gathering of demonstrators shouted "resign" outside the building after several hundred people protested there on Thursday and Friday nights.

The growing scandal over alleged cash payments to People's Party leaders from a slush fund fed by construction industry executives has damaged Rajoy's credibility during a profound economic crisis in Spain.

Both right-leaning El Mundo newspaper and left-leaning El Pais have reported details of the scandal, citing sources within the PP and copies of the alleged secret accounts kept by party treasurers.

Rajoy, 57, has asked Spaniards for sacrifices as he slashes spending to trim a dangerously high public deficit that last year threatened to bankrupt the state and force him to seek a humiliating international bailout.

His popularity has plummeted during his 13 months in office as his austerity measures aggravate a deep recession and 26 percent unemployment.

The PP has an absolute majority in Parliament and so far the party has not shown signs of a split that would allow opponents to carry a vote of no confidence.

The PP has already said it will commission an external audit of its accounts.

The anti-corruption prosecutor's office said on Friday it is investigating the alleged payments. If the prosecutor finds evidence of a crime he will make a report to Spain's High Court, which will then decide whether it opens a judicial investigation, the first step to a possible criminal trial.

(Additional reporting by Iciar Reinlein and Rodrigo de Miguel; Writing by Fiona Ortiz)

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