Wall Street ends 2012 riding high on "cliff" deal optimism

NEW YORK (Reuters) - U.S. stocks closed out 2012 with their strongest day in more than a month, putting the S&P 500 up 13.4 percent for the year, as lawmakers in Washington closed in on a resolution to the "fiscal cliff" negotiations.

The S&P 500's gain for the year marks its best performance since 2009, as stocks navigated through debt crises in Europe and the United States that dominated the headlines. Still, with numerous issues involving budget talks unresolved, markets could still be open to a shock should the deal break down unexpectedly.

Fittingly, in the last session of the year, stocks bounced back and forth on the headlines out of Washington, as both President Barack Obama and Republican Senate leader Mitch McConnell issued statements indicating a deal to avert the cliff was close.

"The worst news could have been the president coming out and saying, 'We don't have a deal and we've giving up,' and he didn't say that," said Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, based in Scottsdale, Arizona.

"My personal skepticism, I don't trust anything out of Washington until it is signed, sealed and delivered, and it is not signed, sealed and delivered."

While a deal on the cliff is not yet official, investors may be ready to take on more risk next year in hopes of a greater reward.

McConnell said an agreement had been reached with Democrats on all of the tax issues in the potential deal, removing a large hurdle in the talks. An agreement is needed in order to avert a combination of tax hikes and spending cuts that many believe could push the U.S. economy into recession.

A source familiar with the matter said an emerging deal, if adopted by Congress and President Barack Obama, would raise $600 billion in revenue over the next 10 years by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.

Despite the uncertainty, the market encountered only occasional bouts of volatility this year. For the first time since 2006, the CBOE Volatility Index or VIX <.vix>, the market's favored indicator of anxiety, did not surpass the 30 level, a threshold that usually signals heightened worry among investors.

"Given all the threats in 2012, the VIX was relatively tranquil," said Bill Luby, the author of the VIX and More blog in San Francisco, citing the crises in Spain and Greece, along with constant intervention from the Federal Reserve.

The Dow Jones industrial average <.dji> gained 166.03 points, or 1.28 percent, to end at 13,104.14. The Standard & Poor's 500 Index <.spx> gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index <.ixic> gained 59.20 points, or 2.00 percent, to close at 3,019.51.

Monday's gains enabled the S&P 500 to snap a five-day losing streak, its longest skid since September.

The S&P 500 closed out 2012 with a 13.4 percent gain for the year, compared with a flat performance in 2011. The Dow rose 7.3 percent in 2012 and the Nasdaq climbed 15.9 percent.

Financials <.gspf> were the strongest of the S&P's 10 industry sectors this year, gaining more than 26 percent, led by Bank of America , which more than doubled in 2012, and was the best performer of the Dow industrials.

Of the S&P's 10 sectors, only defensively oriented utilities <.gspu> ended the year lower, falling 2.9 percent.

Gains in Apple Inc , the most valuable U.S. company, helped lift the Nasdaq. The stock rose 4.4 percent to $532.17, lifting the S&P information technology sector index <.gspt> up 2.2 percent. For the year, Apple rose 31.4 percent, ending with a market value of about $501.4 billion.

Each of the Dow's 30 components finished the session in positive territory, led by a 3.2 percent climb in Caterpillar Inc to $89.58.

Volume was modest, with about 6.06 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly below the daily average of 6.42 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 6 to 1, while on the Nasdaq, four stocks rose for every one that fell.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Rape Incites Women to Fight Culture in India

Andrew Caballero-Reynolds/Agence France-Presse — Getty Images

A candlelight gathering after the cremation on Sunday blocked a road in New Delhi, the city where the Dec. 16 rape occurred.

NEW DELHI — Neha Kaul Mehra says she was only 7 years old the first time she was sexually harassed. She was walking to a dance class in an affluent neighborhood of New Delhi when a man confronted her and began openly masturbating.

That episode was far from the last. Years of verbal and physical sexual affronts left Ms. Mehra, now 29, filled with what she described as “impotent rage.”

Last week, she and thousands of Indian women like her poured that anger into public demonstrations, reacting to news of the gang rape of another young woman who had moved to the city from a small village, with a new life in front of her.

That woman, a 23-year-old physiotherapy student, died Saturday from internal injuries inflicted with a metal rod during the rape, which took place on a bus two weeks ago.

In her story and its brutal ending, many women in the world’s largest democracy say they see themselves.

“That girl could have been any one of us,” said Sangeetha Saini, 44, who took her two teenage daughters to a candle-filled demonstration on Sunday in Delhi. Women in India “face harassment in public spaces, streets, on buses,” she said. “We can only tackle this by becoming Durga,” she added, referring to the female Hindu god who slays a demon.

Indian women have made impressive gains in recent years: maternal mortality rates have dropped, literacy rates and education levels have risen, and millions of women have joined the professional classes. But the women at the heart of the protest movement say it was born of their outraged realization that no matter how accomplished they become, or how hard they work, women here will never fully take part in the promise of a new and more prosperous India unless something fundamental about the culture changes.

Indeed, many women in India say they are still subject to regular harassment and assault during the day and are fearful of leaving their homes alone after dark. Now they are demanding that the government, and a police force that they say offers women little or no protection, do something about it.

Ankita Cheerakathil, 20, a student at St. Stephen’s College who attended a protest on Thursday, remembered dreading the daily bus ride when she was in high school in the southern state of Kerala. Before she stepped outside her house, she recalled, she would scrutinize herself in a mirror, checking to see whether her blouse was too tight. At the bus stop, inevitably, men would zero in on the schoolgirls in their uniforms, some as young as 10, to leer and make cracks filled with sexual innuendo.

“This is not an isolated incident,” Ms. Cheerakathil said of the death of the New Delhi rape victim. “This is the story of every Indian woman.”

While the Dec. 16 attack was extreme in its savagery, gang rapes of women have been happening with frightening regularity in recent months, particularly in northern India. Critics say the response from a mostly male police force is often inadequate at best.

Last week, an 18-year-old woman in Punjab State committed suicide by drinking poison after being raped by two men and then humiliated by male police officers, who made her describe her attack in detail several times, then tried to encourage her to marry one of her rapists. Dozens more gang rapes have been reported in the states of Haryana, Bihar and Uttar Pradesh in recent months.

The government does not keep statistics on gang rape, but over all, rapes increased 25 percent from 2006 to 2011. More than 600 rapes were reported in New Delhi alone in 2012. So far, only one attack has resulted in a conviction.

Sociologists and crime experts say the attacks are the result of deeply entrenched misogynistic attitudes and the rising visibility of women, underpinned by long-term demographic trends in India.

After years of aborting female fetuses, a practice that is still on the rise in some areas because of a cultural preference for male children, India has about 15 million “extra” men between the ages of 15 and 35, the range when men are most likely to commit crimes. By 2020, those “extra” men will have doubled to 30 million.

“There is a strong correlation between masculinized sex ratios and higher rates of violent crime against women,” said Valerie M. Hudson, a co-author of “Bare Branches: The Security Implications of Asia’s Surplus Male Population.” Men who do not have wives and families often gather in packs, Ms. Hudson argues, and then commit more gruesome and violent crimes than they would on their own.

Reporting was contributed by Malavika Vyawahare, Anjani Trivedi, Niharika Mandhana and Saritha Rai.

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Autonomy’s Lynch defends record as HP confirms Federal probe

LONDON (Reuters) – Mike Lynch, the founder of the software firm sold to Hewlett-Packard last year in a deal tainted by accusations of accounting fraud, said he would defend the company’s accounts to U.S. Federal investigators.

HP confirmed in a filing late on Thursday that the U.S. Department of Justice was investigating Autonomy‘s books.

The PC and printer maker bought the British company for $ 11 billion last year to lead its push into the more profitable software sector.

Autonomy did not deliver the growth expected, resulting in Lynch’s departure earlier this year.

But worse was to come last month when HP wrote off some $ 5 billion of the company’s value and accused its former management of accounting improprieties that inflated its value.

The Silicon Valley company said it had passed information from a whistleblower to the U.S. Department of Justice, the SEC and Britain’s Serious Fraud Office.

“On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy,” it said in the filing.

“HP is cooperating with the three investigating agencies.”

Lynch launched a robust defense of his track record almost immediately after HP made the accusations.

He said on Friday that he was still waiting for a detailed calculation of HP’s $ 5 billion writedown of Autonomy’s value and a published explanation of the allegations.

“Simply put these allegations are false, and in the absence of further detail we cannot understand what HP believes to be the basis for them,” he said in a statement.

“We continue to reject these allegations in the strongest possible terms. Autonomy’s financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte and available to HP during the due diligence process.”

Lynch said he had not been approached by any regulatory authority, but he would co-operate with any investigation and looked forward to the opportunity to explain his position.

HP has refused to concede to Lynch’s demands for more information about the allegations.

“While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders,” it said in response to an open letter from Lynch last month

“In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury.”

(Reporting by Paul Sandle; Editing by Helen Massy-Beresford)

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Dick Clark New Year's Eve Love Story - Same Couple Dancing Since 1972

By Dahvi Shira

12/30/2012 at 02:45 PM EST

This New Year's Eve will be just like any other for Kathy and Louie Novoa, except without their dear friend Dick Clark, who passed away in April.

The pair met on American Bandstand and have since taken part in every one of his New Year's Rockin' Eves since they began on the Queen Mary in 1972.

"To be there from the very first one he did and to still be a part of it, I think, wow, I can't believe it," Louie tells PEOPLE. "I still have the original invitation to the very first one."

As for being a part of Rockin' Eve for the first time since Clark's death, Kathy says, "It's very sad and heartbreaking to know he started this tradition and was so important in so many homes. Everybody watches Dick Clark's New Year's Eve. It's very hard [with him gone], but it's also great knowing that it's still going on. That's what he would want."

Kathy and Louie Novoa with Dick Clark in 1976

Courtesy Louie Novoa

Now officially a couple for 36 years, Louie says that starting the New Year with a kiss is his favorite tradition on the show, which kicks off at 8 p.m. ET/PT this year on ABC.

"Kathy and I started doing it, and right after that, Dick's wife Kari [Wigton] goes, 'Why don't we follow up with that?' " he says. "It became a tradition. We had a lot of clips of that. That's what we're going to miss. We always looked forward to that."

The happy pair, who declined to provide their age, would only joke about it.

"People ask us, 'How old are you? You don't look that old,' " Louie explained with a chuckle. "I say, 'We've been around for a while. We are [old].' We really are. You can tell on the dance floor. We're out there dancing with the kids. We call them kids because we try to blend in with them. We still have it though."

Although Louie says they miss Clark "every day," he is a big fan of his replacement, Ryan Seacrest.

"He's incredible," he says. "He's awesome. He does a great job and he has the same personality as Dick Clark. He gets along with everybody."

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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.

___

Associated Press reporter Tom Odula contributed to this report.

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Fiscal deal stalls as clock ticks to deadline

WASHINGTON (Reuters) - Efforts to prevent the economy from tumbling over a "fiscal cliff" stalled on Sunday as Democrats and Republicans remained at loggerheads over a deal that would prevent taxes for all Americans from rising on New Year's Day.

One hour before they had hoped to present a plan, Democratic and Republican leaders said were still unable to reach a compromise that would stop the automatic tax hikes and spending cuts that could push the economy into recession.

"There are still serious differences between the two sides," Senate Democratic Leader Harry Reid said.

A sticking point appeared to be a Republican proposal floated late on Saturday, which would slow the growth of Social Security retirement benefits in an effort to narrow trillion-dollar budget deficits. Many Democrats, including Reid, have said Social Security should not be touched.

With negotiations at an apparent standstill on Capitol Hill, Senate Republican Leader Mitch McConnell said he would now try to hammer out an agreement with Vice President Joe Biden.

"I'm willing to get this done, but I need a dance partner," McConnell said.

Any agreement needs to be rushed through both chambers of Congress before midnight on Monday. Even if the two sides reach an agreement, procedural barriers in the Senate and the House of Representatives make quick action difficult.

If the politicians cannot agree, then tax increases and across-the-board government spending cuts will begin on January 1. That would take $600 billion out of the economy, push unemployment up and curb federal spending.

Another major disagreement was over tax hikes on the wealthy, an increase sought by President Barack Obama but opposed by Republicans, particularly fiscal conservatives in the House of Representatives.

Republicans aim to pair any tax increase with spending cuts to benefit programs that are projected to grow ever more expensive as the population ages in coming decades.

But their proposal to slow the growth of Social Security benefits by changing the way they are measured against inflation met fierce resistance from Democrats. Obama included the proposal, known as "chained CPI," in an earlier proposal, but many of his fellow Democrats remain opposed.

"POISON PILL"

"We consider it a poison pill - they know we can't accept it. It is a big step back from where we were on Friday," a Senate Democratic aide said.

Obama made a rare appearance on NBC's "Meet the Press" to pressure lawmakers into forging a deal.

Senators appearing on other Sunday morning shows expressed optimism that an agreement could be reached.

Republican Senator Lindsey Graham conceded that an agreement would end up raising income taxes on the wealthy, thus sparing the rest of the country from the looming income tax hikes.

"President Obama is going to get tax rate increases. The president won," Graham tweeted, echoing earlier comments he made on "Fox News Sunday." He told the show that the chances of a bipartisan deal before the New Year's deadline were "exceedingly good."

Obama has alternatively offered Republicans a deal to increase income taxes for households earning over $250,000 a year, and over $400,000 a year.

A White House aide said the president and his staff had been in touch with congressional leaders through the weekend.

Any deal on taxes in the Senate might meet resistance in the House from conservative Republicans.

On NBC, Obama warned of the fallout in financial markets if the two sides did not reach an agreement.

"If people start seeing that on January 1st this problem still hasn't been solved, that we haven't seen the kind of deficit reduction that we could have, had the Republicans been willing to take the deal that I gave them ... then obviously that's going to have an adverse reaction in the markets," Obama said, adding that he had offered Republicans significant compromises that had been rejected repeatedly.

He said he would avoid tax increases for most Americans, even if the talks fall apart.

"If Republicans do in fact decide to block it, so that taxes on middle class families do in fact go up on January 1st, then we'll come back with a new Congress on January 4th and the first bill that will be introduced on the floor will be to cut taxes on middle class families," Obama said.

John Boehner, the speaker of the House of Representatives, rejected Obama's accusations that Republicans were not being amenable to compromise.

"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," Boehner, who has had trouble convincing his Republican colleagues to support his own proposals, said in a statement.

(Additional reporting by Tabassum Zakaria, Rachelle Younglai, David Lawder, Fred Barbash and Richard Cowan. Writing by Andy Sullivan, Editing by Alistair Bell and Jackie Frank)

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Pakistan Bomb Kills at Least 19 Shiite Pilgrims

ISLAMABAD, Pakistan — At least 19 Shiite pilgrims, including four women, were killed Sunday when their convoy of three buses in southwestern Pakistan was struck by a remotely detonated bomb, officials said. At least 25 other people were wounded in the attack in the Mastung district of Baluchistan Province.

Banaras Khan/Agence France-Presse — Getty Images

A remotely detonated bomb struck a convoy of three buses in southwestern Pakistan on Sunday, killing at least 19 Shiite Muslim pilgrims.

Banaras Khan/Agence France-Presse — Getty Images

Hospital workers put identification tags on the bodies of Shiite pilgrims killed in the bombing near Quetta.

Earlier Sunday, government officials said they had discovered the bodies of 21 tribal police officers who were kidnapped by the Taliban last week in northwestern Pakistan.

The pilgrims were on their way to Shiite holy sites in neighboring Iran when the attack occurred. A pickup truck filled with explosives was detonated by remote control as the pilgrims’ convoy passed by on Sunday morning. The explosion destroyed one bus and damaged the other two. The wounded were taken to a hospital in the provincial capital, Quetta, officials said.

“Most of the dead bodies are completely burned,” said Maj. Nadir Ali, a retired army officer and a senior leader in the ethnic Hazara community.

Major Ali said the pilgrims had traveled from different cities and stayed in Quetta overnight before embarking on the 500-mile journey to Zahedan, Iran.

No group claimed responsibility for the attack, but Shiite Muslims sect have repeatedly been singled out by extremist Sunni militants belonging to the banned group Lashkar-e-Jhangvi, which has links to Pakistani Taliban militants in the tribal areas.

Pakistan’s Shiites have long complained that despite repeated assurances, the government has offered inadequate security and failed to protect them. In Baluchistan Province, sectarian attacks have often been directed at the ethnic Hazaras, a Persian-speaking Shiite minority. More than 300 Shiites, many of them Hazaras, have been killed in Baluchistan since 2008, according to Human Rights Watch.

Major Ali, the Hazara leader, said the Mastung district was a particularly dangerous point on the trip to Iran because the Lashkar-e-Jhangvi had a strong presence there. In the fall of 2011, militants there dragged 26 Hazara men and boys from a bus headed to Iran and executed them. 

“Security is not satisfactory,” Major Ali said.

In northwestern Pakistan, 21 police officers who had been captured by Taliban militants were found shot to death late Saturday night on the outskirts of Peshawar, government officials said Sunday.

The bodies were lined up in a field and had been shot at close range, the officials said. One officer was found wounded and was taken to a hospital.

The officers, who belonged to a tribal police force, were abducted Thursday after hundreds of Taliban militants armed with heavy weapons attacked three security checkpoints on the outskirts of Peshawar.

Government officials had asked local elders to help them negotiate the release of the police officers, but those efforts were unsuccessful.

A group affiliated with the Taliban that operates in the Darra Adam Khel region claimed responsibility for the abduction of the officers.

Pakistani analysts say independent groups of militants are battling the security forces, complicating an already difficult battle against terrorism and militancy.

Last week, Hakimullah Mehsud, the leader of the Pakistani Taliban, appeared in a video and laid down several conditions for negotiations with the government. While indicating that the Taliban were willing to talk, Mr. Mehsud said the militants would not put down their arms.

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NORAD Santa trackers draw record number of phone calls, social media followers

PETERSON AIR FORCE BASE, Colo. – NORAD says it drew a record number of phone calls and social media followers during its NORAD Tracks Santa operation on Christmas Eve.

The North American Aerospace Defence Command said Friday volunteers answered more than 114,000 calls, up 12,000 from 2011.

NORAD’s Santa Facebook page had more than 1.2 million followers, up from about 1 million last year. More than 129,000 people followed on Twitter, up from 101,000 last year.

NORAD got 11,000 emails, up from 7,700 in 2011.

More than 1,250 volunteers answered phone calls, including first lady Michelle Obama.

NORAD Tracks Santa began in 1955 when a newspaper listed the wrong number for children to call Santa. They wound up calling the Continental Air Defence Command, NORAD’s predecessor.

The operation is based at Peterson Air Force Base, Colo.

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Emily Maynard's Cat Gets a Haircut - Like a Lion!

People Pets

By Amy Jamieson

12/28/2012 at 04:00 PM EST

Emily Maynard and her cat Safari

Courtesy Emily Maynard; Inset:Craig Sjodin/ABC

Emily Maynard's cat Safari was named for a wilderness expedition – and now the feline looks like he could roam wild in one.

In a Twitter photo Maynard shared Thursday, the cat's fur has been fashioned into a lion's mane.

"Safari has never been happier. Really. I swear. #grumpycat," she Tweeted.

It sounds like both of the single mom's felines are sporting the new do.

"I just dropped Holly and Safari off to get their lion haircuts," she replied on Thursday to her Twitter friend, @BoMartini. "Get ready for your phone to be filled with even more cat pics."

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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.

___

Associated Press reporter Tom Odula contributed to this report.

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