Algiers, Dec 28, 2006 - - Algeria's most controversial event in 2006 was the approval by the Algerian cabinet of the national-unity and reconciliation charter.

At the end of February, the charter granted amnesties to members of armed groups who had not committed mass murder or rape and who had not taken part in plotting terrorist attacks.

Around 2,000 people, the leaders of the banned Islamic Salvation Front topping the list, were able to 'evade' legal confrontation and to return safely to their families. They were not allowed to return to political activity under the charter.

Violence and Islamic militancy in Algeria have so far, according to official reports, claimed between 150,000 and 200,000 lives, including 17,000 terrorists.

The government has set forth a plan to compensate victims of violence. According to government records, the plan has a budget of 400 million dollars.

Despite government efforts, terrorist attacks have not stopped. The Salafi group, a fundamentalist group who claim they fight for Allah, continued to defy authorities.

Recently the radical group announced its affiliation with the al-Qaeda terrorist network and carried out attacks that killed dozens of policemen and soldiers.

The group is responsible for major attacks in the east and west of the capital where two police stations were torched and two private buses owned by an American company were attacked in December.

Contradicting news reports over the health of Algerian President Abdelaziz Bouteflika also swelled in the summer of 2006.

The president had undergone medical examination in France earlier in the year. During the summer he almost 'disappeared' from formal events for at least 45 days, fuelling the rumours about his deteriorating health.

But the president ended the debate in November when in a statement to the press he said that if he was really 'disabled,' he 'would go straight home.'

The president pushed back a key referendum regarding constitutional amendments to next year. The Interior Ministry took responsibility saying that the delay was more 'technical' from their side than political.

A referendum on changing the constitution was initially scheduled to take place at the end of 2006.

Meanwhile, Algerians have been appealing to the French authorities - directly and subtly - to issue a formal apology concerning 'crimes' the French armies committed during their occupation of the country from 1830 until 1962.

In return for the apology, Algeria said it was willing to sign a 'friendship pact' with its French counterparts.

The year 2006 was also one in which many Western countries courted Algeria for cooperation in security, including the United States, Portugal, Spain, Britain, France, Italy and Canada.

Many of these states hailed their support for the Algerian war against terrorism.

Economically, the country experienced unrest after demonstrations surged and strikes broke following a government decision to amend the hydrocarbons bill in favour of the state-owned national company Sonatrach.

Following the amendment, Sonatrach maintained 51 per cent of oil production, making it the biggest Algerian company. The amendment also imposed higher taxes on foreign oil companies based in Algeria.

Meanwhile, the government promised that the incomes of public company employees would increase by 10 to 30 per cent.

In other news, the kidnapping 'business' also increased in Algeria in 2006, according to the authorities. Many of the well-to-do suffered when their children and members of their households were taken captive and threatened for money.

However, perhaps what affected some Algerians the most in 2006 was the visit of French football superstar Zenidine Zidane to Algeria his ancestral home.

Zidane was received like a hero, honoured by the Algerian authorities and granted 'al-Atheer,' Algeria's most prestigious medal.

2006 Review: Islamic militancy defies government, threatens Algeria