WASHINGTON (CNN) -- Sen. John Kerry said Tuesday he will offer a new explanation and clarification of a $7.5-billion Pakistan aid bill that has prompted a firestorm of anti-American sentiment inside Pakistan.
A member of an Islamic fundamentalist party protests the aid bill October 2 in Pakistan.

A member of an Islamic fundamentalist party protests the aid bill October 2 in Pakistan.

Opponents say the United States is meddling in Pakistani affairs.

Kerry, D-Massachusetts and chairman of the Senate Foreign Relations Committee, stood beside Pakistani Foreign Minister Shah Mahmood Qureshi at the U.S. Capitol on Tuesday afternoon to announce that he and other congressional leaders would release what Kerry called "report language with the force of law" to clear up questions about the nonmilitary aid bill.

The explanation would accompany the bill, which was passed unanimously by the House and Senate, when it is formally sent to President Obama to sign into law, something that could happen in coming days.

"If there are misrepresentations, we're going to clarify this," Kerry told reporters after he and Qureshi met in private.

The United States says the aid bill makes no new demands on Pakistan, but some Pakistani politicians say it will result in American micromanagement of Pakistan civil and military affairs.

Kerry said the multibillion-dollar aid package would provide "deeper, broader, long-term engagement with the people of Pakistan." He said the aid is a sign of friendship and was never intended to interfere with Pakistan's government.
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Kerry and the Pakistani foreign minister are set to meet again Wednesday. The statement of clarification will probably be submitted jointly by Kerry; Indiana Sen. Richard Lugar, the ranking Republican on the Foreign Relations Committee; and Rep. Howard Berman, D-California and the chairman of the House Foreign Affairs Committee.

The federal pay czar is trying to force the American International Group to reduce $198 million in bonuses promised to employees of its trading unit, where problems posed a threat to the global financial system last year.
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But the Treasury’s special master for compensation, Kenneth Feinberg, is running into legal hurdles because those bonuses fall outside new rules against bonus payments at companies receiving government assistance. The bonus agreements at issue were struck before last year’s emergency rescues by the Treasury and the Federal Reserve, and thus are not directly covered by the new rules.

The problem is a recurring one. A.I.G. payments early this year to the same employees elicited public outrage, though government officials said then that they had little legal authority to rescind pre-existing contracts.

To strengthen his hand, Mr. Feinberg is threatening to reduce the compensation packages he does control, according to a person close to the talks. That could mean shrinking the pay of other A.I.G. executives — including its new chief, Robert Benmosche — if the firm does not claw back part of the bonuses for the people in its trading unit, known as A.I.G. Financial Products.

At companies that received extraordinary government support, Mr. Feinberg’s task is to monitor and enforce rules governing new pay packages. He can approve or reject cash pay that exceeds $500,000 for top executives.

Mr. Benmosche, hired by A.I.G. late this summer, received a compensation package that includes $3 million initially and about $4 million in stock that he must hold for five years, as well as annual bonuses based on performance.

A.I.G. has a variety of employee bonus programs. The Financial Products group began a two-year retention program in January 2008, before its government rescue, designed to keep skilled employees from leaving and jeopardizing its derivatives portfolio .

After A.I.G. paid $165 million in retention bonuses to that group in March, it promised to try to recover much of the money to quell the uproar that ensued.

But the insurance company has recovered only $19 million of the $45 million it asked the recipients to repay, according to an audit of its compensation program and the government’s oversight.

A company spokeswoman, Christina Pretto, said in a statement that the people who had received that money had “until the end of the year to fulfill their commitments,” and that the company believed those people would honor them.

But the special inspector general for the Troubled Asset Relief Program, Neil M. Barofsky, who conducted the audit, said some of the money appeared to be unrecoverable, because the employees had resigned rather than return the pay.

Other people are still weighing tax issues arising from those bonuses, and some have asked the insurer to dock their paychecks in the future, rather than make a single payment now.

The inspector general’s audit will be the subject of a hearing Wednesday by the House Oversight and Government Reform Committee.

The report stated that Mr. Feinberg had “informally advised A.I.G. not to pay the full $198 million,” scheduled for payment next March, but did not reveal how sharply Mr. Feinberg hoped to pare the bonuses.

The amount of the bonuses at A.I.G. is quite small relative to the record amount of government assistance received by the firm over the last year, roughly $182 billion.

The $165 million in bonus pay made last March coincided with the news that A.I.G. had just posted the biggest loss in American history and would need a bigger rescue package. That led to stormy Congressional hearings and tours of the suburbs where some bonus recipients lived.

Company officials argued at the time that only a handful of the employees of financial products bore responsibility for the disastrous derivatives trading, and it was unfair to blame everybody for the harm caused by a few. The company also said it wanted to honor its commitments because skilled people might resign en masse if bonuses were rescinded.

The new audit pointed out that the bonus program for the Financial Products unit was unusual because it included payments to unessential people. It cited a $7,700 bonus for a kitchen assistant, a $7,000 bonus for a mailroom assistant and $700 for a file administrator.

The audit also described the lack of coordination between the Federal Reserve and the Treasury over A.I.G.’s compensation program. It said Fed officials had their own conversations with company officials about compensation last fall, and were further briefed over the winter by compensation specialists at Ernst & Young brought in to help.

But the Fed did not convey any of the information it had gathered to the Treasury until just before the bonuses were scheduled to be paid in March. Then, the Fed sent an e-mail message to the general counsel at the Treasury, the report stated, warning that the looming bonuses had “garnered press and congressional attention” and would “not be easy for Treasury and the Fed to defend.”

That message promised to supply more detail, but nothing followed for about a week.

“Despite the strong language” of the Fed’s messages, the audit found “that the e-mail did not raise any flags in Treasury.”

Stephen Labaton contributed reporting.

WASHINGTON (CNN) -- The Inter-American Court of Human Rights has been asked to investigate whether Panama tortured an Ecuadorian citizen who was being held as an illegal immigrant, an official hemispheric human rights organization said.

Jesus Tranquilino Velez Loor was arrested November 11, 2002, and deported to Ecuador on September 10, 2003. During that time, he was held without receiving procedural guarantees, the right to be heard and the right to present a defense, said the Inter-American Commission on Human Rights.

"The case also involves the lack of investigation of complaints of torture presented by Mr. Velez Loor before the Panamanian authorities, as well as the inhumane conditions of detention under which he was held in several Panamanian penitentiaries," the human rights commission said in a release Tuesday.

The human rights panel, which is part of the 35-nation Organization of American States, said it referred the case to the court last week because Panama did not adopt sufficient measures to address issues raised in a previous commission report.

Velez Loor "was sentenced to a prison term for having repeatedly entered Panama illegally. ... Panamanian law provides that foreign nationals, who repeatedly enter Panama, without the necessary papers, will be imprisoned for two years and then deported," Panama said in a 2006 report.

Velez Loor admitted he had gone into Panama without proper papers or visas.

The commission said it received an e-mailed complaint from Velez Loor on February 10, 2004, "in which he claims to have undergone torture, forced isolation, and mistreatment at the hands of Panamanian police officers at two Panamanian detention centers without being given the opportunity to defend himself, without the benefit of any court of law, without being allowed to make a telephone call and while being deprived of all medical care."

Panama denied those allegations in the 2006 human rights commission report.

Officials at the Panamanian embassy in Washington did not return a telephone request Tuesday from CNN for comment on the latest development.

The human rights commission consists of seven members who act in a personal capacity, without representing any country, and who are elected by the OAS General Assembly.

MEDELLIN, Colombia (CNN) -- This city's drug underworld is littered with "poseurs" -- lowlife triggermen pretending they're the real hard cases. But a longstanding and trusted source, with intimate knowledge of Medellin's violent subculture, assured me the two men I was about to meet were the real deal. My destination: a single-story home in the city's notorious "Commune 13" district where I had set up a meeting with two hit men, who have for years hired their lethal services out to the cocaine cartels. Inside the house, a man called "Red" sat on a couch toying a fully loaded 9mm Ruger pistol. "This will stop somebody nicely," he said, as I glanced at it. His face and arms were covered in burn marks. He said it was a testament of the day a barrel of acid spilled onto him as he was working in a clandestine cocaine processing lab in northern Colombia. Red explained that after the accident, the lab foreman tossed him out, half-dead, into a jungle clearing. What little strength he had left, he said he used to bat away vultures. And, against the odds, he made his way to safety and slowly recovered. When Red left the clinic months later, he said he went straight back to the drug lab and gunned down the foreman and three of his henchmen. That wasn't his first killing though, he told me. When he was just 11 years old, Red recounted, he took a razor to the throat of a neighborhood drug pusher who had been molesting his little sister. The other man, "C", sat quietly as I listened to Red. Like Red, my source told me, "C" was also the so-called "chief" of a number of neighborhoods -- running local drug-peddling operations, extortion rackets and organizing hits for a big cartel boss he simply referred to as "El Cucho," or "The Old Man." Don't Miss * Power vacuum fuels vicious drug war It was a hot morning and he was shirtless. His chest was branded with a tattoo of the Virgin Maria Auxilatrix, known in Colombia as the "Virgin of the Assassins." Hitmen, or "sicarios" as they call them here, revere her and pray to her for protection against arrest or death and for help to carry out their killings. During our time with the hit men they offered a fascinating insight into their violent world -- from how much they get paid to what their mothers think of their lifestyle: Penhaul: Why are Medellin's drug bosses and the street gangs in a war right now? "RED": "These problems come about because they're looking for a good man to run things. We have to find him and, in order to find him, what's happening right now has to run its course." "C": "Medellin has exploded right now because different groups want to control it and earn money and gain territory. The authorities locked up, extradited, or cut cooperation deals with the big guys, the ones who controlled all this. Those were the ones people respected. Now there's no respect and anybody who has a bunch of money is grabbing a few kids from a poor neighborhood and putting them to work." Penhaul: What are the cartel bosses paying for a contract killing now? "C": "If you're talking about a contract hit then right now you can get four or five million pesos (between US$2,000 and $2,500) to kill some idiot slimeball. Then of course there are bigger hits where you can earn 15 (million) or 20 million (between $7,500 and $10,000). Some of those hits pay pretty well. There's a lot of people around here with a lot of money and they're using it for bad things. Sometimes even the politicians will pay for a hit to get somebody out of their way." Penhaul: Why did you get into this lifestyle? "Red": "People need to eat and there's a lot of hunger. We don't just want the crumbs. That's the big problem. There's a lot of idle hands around here and many people think they have a chance if they have a gun in their hand." "C": "I grew up in a slum and every time I stepped outside the door there were guys from the local gang smoking (marijuana) joints. They had guns, the best motorbikes and money so I started running errands for them." Penhaul: Didn't you have any big dreams when you were kids? "Red": "I always said when I grow up I would build a house for my old lady with a cement roof and plaster and paint on the walls. I dreamed I'd be able to give her money to go to the supermarket every week." "C": "I dreamed of being a professional soccer player. I was pretty good. But I never got the chance." Penhaul: Do you think you've made your mothers proud by killing people? "Red": "I once gave my mum a wad of cash after I did a job. She took the wad and slapped me in the face and told me not to bring that cursed money into the house. She begged me to get out of that life. She was afraid they would kill me." "C": "My mum knows nothing about this. I guess she imagines because she tells me to take care otherwise I'll wind up dead. But she doesn't know for sure." Penhaul: What did your first contract hit feel like? "Red": "You kill the first one and you panic for a few days. You're nervous. But then you kill the second one and that's a kind of a medicine. It takes the pain away that you were feeling after the first killing." "C": "The first time is really f***ed up. I nearly went mad. You see a cop and think he's going to arrest you. I was 16 or 17. That was my first time. I hardly even wanted to eat. But then you carry on and kill this one and that one. You earn money. After I killed somebody the first time I bought my first decent pair of sneakers. "It's not so tough now. Sometimes you kill somebody and you know they were going to kill you. It's not a question of conscience. It's a question of kill or be killed." Penhaul: Don't you feel any remorse? "C": You know you messed up when you go to the wake and see people crying and you know it's your fault. But I don't back down from a killing because I know if somebody comes after me they won't back down." "Red": "I've got feelings and sometimes you sit down and think what a shame. But the person who's trying to shoot you isn't going to think the same. You're not killing somebody for the fun of it. If you don't mark your territory then you're a nobody." Penhaul: So, apart from the money, why do you do it? "C": "To gain respect round here you have to be a mother f***er. You've got to be a bastard so people respect you. If you're quiet and respectful everybody takes advantage. But if they know you're a mother f***er who'll bust their ass at the first sign of trouble then they respect you and your family." Penhaul: Are you killing innocent people? "C": "I never kill somebody who doesn't deserve it. Sometimes I'll hunt down a "patient" for a week just so that I don't make any mistakes. You can't go and kill somebody just because you want to. You have to ask for permission from the big guys who control us. You explain to the "old man" and he gives the final word." Penhaul: Are you ever on the receiving end of bullets? "Red": "They once shot me four times at point blank range. I heard them laughing as they walked away and one came back and kicked me in the head for good measure. When I got better he was the first one I killed. I've been shot 17 times. Well let's call it 19 if you count the ones that just graze you. They say some bodies have divine protection. Let's hope mine is one of them." Penhaul: Why don't normal citizens just turn you in? Because they're afraid? "C": "The community collaborates with us. We give them food parcels and we throw parties for them and give toys to the kids. We don't mistreat everybody, just the ones who deserve it. We don't kill innocent people." Penhaul: Do you want to get out of this life? "C": "I know you should pay what you owe. But I don't want to pay for all those deaths. I'll be absolutely f***ed if I have to pay. I want to get out of this but I want a clean slate. If I pay my debt to the law then that means jail and if I pay on the street then that means death. I don't want to go to jail or to die." advertisement Penhaul: Do you see any quick end to the current cartel violence in Medellin? "C": "We've survived one war, then another and now this one. I can't see it all ending. I don't think that will happen. If you kill two or three people there's four or five more behind him who want to kill you."