RDC: Fleurette Group Statement “re: KCC Royalties” (15.11.2016)

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KINSHASA, Democratic Republic of Congo, November 15, 2016Fleurette Group notes the statement made by Global Witness today concerning the sale of royalties from Katanga’s KCC project by Gecamines to a Fleurette-owned entity. The Global Witness statement is highly misleading, based on factually inaccurate information designed to manipulate data in an effort to undermine a legitimate transaction.

Fleurette Group categorically refutes the allegations by Global Witness that the DRC economy has somehow lost money through the sale of the KCC royalty stream. The transaction between Africa Horizons Investment Limited (“AHIL” – which is a 100% Fleurette subsidiary) and Gécamines. With hindsight, Gécamines negotiated a highly lucrative transaction to the benefit of the DRC.

Additionally, Global Witness’s financial calculations are amateurish to the point of bogus. They do not follow even the basic valuation techniques used by all professionals in this field, and fail to include further discounts (such as withholding tax payments) that are both obvious and important. Global Witness has no excuse for making these mistakes. The manipulation of data seems wilful in nature, and designed to support a pre-ordained conclusion. It is difficult not to infer that Global Witness is trying to mislead journalists, the general public and other stakeholders at Fleurette’s expense.

DRC made net profit from deal, Fleurette a net loss

The transaction ultimately resulted in Gecamines safeguarding value for the DRC economy and Fleurette making a considerable loss due to the subsequent collapse in commodity prices and suspension of KCC’s operations. This is because Gecamines sold the royalty right before operations at KCC were suspended, meaning Fleurette had paid in full for a royalty stream that that ceased soon afterwards. While Fleurette was left unable to recoup its investment, Gecamines received full value for it.

This should not come as a surprise. Fleurette recognizes this as inherent industry risk in the mining sector. KCC, meanwhile, was well advised. It carried out its own verification, taking reasonable measures in accordance with its procedures to satisfy itself the sale was authorized by Gecamines and that there was an underlying basis for the sale. Independent international financial institutions advised both sides, and the transaction was priced in accordance with the valuations provided to the parties. Global Witness does not acknowledge these facts. Instead, despite these facts, it attempts to crititicize a deal which demonstrably and unequivocally benefited both Gecamines and the DRC.

Global Witness mistakes

Global Witness’ statement implies that KCC royalties were worth $880m to Fleurette. By referencing the Independent Technical Report of March 2012 prepared by Golder Associates, Global Witness was duty bound to provide an accounting and valuation in a bona fide manner, which they did not. Global Witness’ implication that the royalties were worth $880m shows a lack of understanding of the most basic business and accounting principles of Discounted Cash Flow and Net Present Value, used to value royalty streams (as well as a host of other assets that are expected to provide value into the future).

Even though Golder Associates provide a very conservative 10% discount factor to their valuation of the KCC project (including royalty cashflow streams they expected to be generated), Global Witness applied 0% discount when expressing the worth of the royalty stream in their statement. If they had applied an industry-standard 15% discount factor, the cashflow they misleadingly referred to would have determined a $245m valuation for the royalty right until 2030.

There is another valuation factor that Global Witness has omitted entirely, even though it hugely impacts the assessment of value for the KCC Royalty. Crucially, AHIL’s royalty right will almost certainly fall away in on 1 March 2019. As per the terms of the original KCC JV Agreement between Katanga, Gecamines and KCC (all publicly available), Gecamines has a “Replacement Reserves” obligation which requires it to deliver 4m tonnes of copper reserves and 200,000 tonnes of cobalt to KCC. If it doesn’t, under the terms of the agreement, Gecamines needs to pay $285 million to compensate KCC. If it is not able to do that, the JV Agreement requires the repayment to be made by way of set-off of the royalty, ie KCC will withhold the royalty until that debt has been paid. In short, the royalty that Fleurette paid for will not be paid to Fleurette from 1st March (assuming KCC is back in operation and paying royalties), but will be used to cover off a pre-existing Gecamines debt.

Global Witness also intentionally omitted the annual rental deduction of $1.2m from their calculation and 10% withholding tax on royalties.

Questions for Global Witness

Unfortunately for AHIL and KCC, the project ceased production in September 2015. AHIL does therefore not expect to receive any more royalties, and will have suffered a huge loss as a result – as royalties paid up to this point were far less than the amount AHIL paid for the royalties. This is an example of how industry risk can play a major part in the life of a DRC project in addition to the broader risks associated with operating in a country like the DRC.

Global Witness needs to be held to account on this occasion given the unnecessary damage this misleading report will do to the DRC’s extremely delicate economy and the reputation of Gecamines as well as Fleurette, which is leading the recovery effort following the collapse of global commodity prices. In essence, this was a good deal by Gecamines, independently verified by multiple stakeholders, which safeguarded value for the DRC, but a poor deal for Fleurette. It is deeply regrettable Global Witness is publishing such inaccurate information.

-Ends-

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Media enquiries

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About Fleurette – http://www.fleurettegroup.com / LinkedIn  / Twitter

The Fleurette Group of Companies (“Fleurette”) is an entrepreneurial business with significant investment in diverse sectors, including natural resources, infrastructure, agriculture and technology. Fleurette has substantial investments and operations in the Democratic Republic of Congo (DRC). The parent company of the group, Fleurette Properties Limited, a Dutch resident company, is owned by Line Trust Corporation Limited strictly and solely as trustees of the Ashdale Settlement, a trust established in 2006 for the benefit of the family of Dan Gertler. Mr Gertler is a citizen and resident of Israel and the DRC (and honorary counsel to the DRC) and is committed to developing the country’s natural resources and infrastructure, while investing in the Congolese people and their communities.

Fleurette has a proven track record of successful co-operation with diverse parties, including the DRC State-owned mining company Gécamines, and to date has brought more than USD $7 billion of investment into the DRC, on top of its USD $2 billion in private investment. As a result, Fleurette’s subsidiaries and partnerships support around 30,000 jobs in the DRC and are amongst the DRC’s leading taxpayers, contributing significant revenues to the State.

Fleurette is also a major contributor to social development in the DRC through the Gertler Family Foundation (GFF) and through direct investment in social infrastructure. The GFF is the largest charitable organization in the DRC, funding more than 50 programs and projects across the DRC, which help tens of thousands of Congolese every year. These include rebuilding key hospitals, notably the Kisangini “Hospital du Cinquantenaire”; supporting the Operation Smile campaign in Lubumbashi and Kinshasa; rebuilding Blaise Pascal School in Lubumbashi; and supporting the Lubumbashi Zoo.

UPC: A Reflection of the US Election in the Context of the False Narrative Peddled about UPC (16.11.2016)

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Opinion: Leaked Memo shows that PM May and her Cabinet has a true disregard for the Brexit!

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There are some days that just have to grow upon you, as the news we’re coming on the matter, Davis Davis, the Member of Parliament who was named and appointed to be the Brexit Minister of Davis Michael Davis. As long as you have loudmouth Foreign Secretary for the United Kingdom Boris Johnson, another Brexiteer who hasn’t delivered anything that matter on the Article 50 of the Lisbon Treaty or anything else.

So the Conservative Party under Prime Minister Theresa May has a Cabinet that doesn’t even consider the Brexit vote and the public wish to leave the European Union. Something the backbenchers of the Conservative Party didn’t fight for anyway. Except for the ones who renegaded against the than PM David Cameron.

So the months has gone, and September there we’re even reports that Brexit Minister Davis Davis we’re living the life of lavish MP, but not acting upon the election that offered him the job in the government.

So he has been a ghost and undetermined person. As shown with the words of the leaked memo yesterday: “The divisions within the Cabinet are between the three Brexiteers on one side and Philip Hammond/Greg Clark on the other side. The Prime Minister is rapidly acquiring the reputation of drawing in decisions and details to settle matters herself – which is unlikely to be sustainable. Overall, it appears best to judge who is winning the debate by assuming that the noisiest individuals have lost the intra-Government debate and are stirring up external supporters” (SkyNews, 2016).

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The PM May has to sort out her house and make sure the dishes is washed inside the kitchen before the food is served. Brexiteers hasn’t seemed to pushed hard if the dishes are just staying dirty and not worked on. And the PM May doesn’t seem interested in change the state of affairs, because she want to steer the ship herself without listening to the cabinet, that will be a good leader, but a selfish one it seem.

“Individual Departments have been busily developing their projects to implement Brexit, resulting in well over 500 projects, which are beyond the capacity and capability of Government to execute quickly. One Department estimates that it needs a 40% increase in staff to cope with its Brexit projects. In other words, every Department has developed a “bottom up” plan of what the impact of Brexit could be – and its plan to cope with the “worst case”. Although necessary, this falls considerably short of having a “Government plan for Brexit” because it has no prioritisation and no link to the overall negotiation strategy” (SkyNews, 2016).

So there is no distinctive negotiation strategy for the Brexit, as the Prime Minister Theresa May already proven to be selfish and wanting to take the decisions on her own, instead of listening to the ones she has appointed for her cabinet. This proves the little value the PM has in her own as she doesn’t care for listening to Secretary for Brexit Davis or anybody else.

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Departments are struggling to come up to speed on the potential Brexit effects on industry. This is due to starting from a relatively low base of insight and also due to fragmentation – Treasury “owning” financial services, DH-BEIS both covering life sciences, DCMS for telecoms, BEIS most other industries, DIT building parallel capability focused on trade etc” (SkyNews, 2016).

Another one of the nonsense that the Departments are not focused or working together to know the effects of an actual leaves the European Union and the trading with the Member States of the EU. How the Departments are effected by Brexit that should be checked and made sure by the Ministers and through the back-channels to make sure the Industry are getting a good as possible place with their trade. Instead of finding out the real potential of the industrial production and the needed changes that might be there after the actual Brexit.

“Industry has two unpleasant realisations – first, that the Government’s priority remains its political survival, not the economy – second, that there will be no clear economic-Brexit strategy any time soon because it is being developed on a case-by-case basis as specific decisions are forced on Government” (SkyNews, 2016).

So another statement showing the disgraceful attempt of silencing internal movement of the Brexit; they didn’t show any clear economic-Brexit strategy, but the decisions are not made as there is apparently no will for the Cabinet and Conservative Party Government and the PM May. That shows the disrespect the Government that been made after the PM David Cameron showed grace and stepped down. Because he had no real plan to leave the Union he had cooperated so well with during his years in Cabinet and in Parliament.

Peace.

Reference:

Sky News – ‘Leaked memo shows Government’s lack of Brexit plans’ (15.11.2016) link: http://news.sky.com/story/leaked-memo-shows-governments-lack-of-brexit-plans-10658063/revision/1479197701

Besigye tear-gassed and still arrested at Kiira Road Police Station!

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As he earlier in the day left the Nakawa Magistrate Court and drove further down Gyaza Road, the Police incepted him as the crowds around his. As usual the Police starting towing the White Van from the area and unto the compound of the Kiira Road Police Station. Something that has dozen times in past and not the first, nor the last time Dr. Kizza Besigye, the nemesis of Museveni will end there.

So the Kampala Metropolitan Police has decided to let him be in his cars for ours. Not allowed to leave it or let anybody see him. As the Police Officers in and around their compound has tear-gassed the area. Which means that they have tear-gassed Dr. Kizza Besigye and the people around the Police Station. This all has happen without any indication of the crime or reason for the day’s arrest of Besigye. Another proof of the ignorant belligerent Police Force currently working under President Museveni.

Stop the Police Brutality and nonsense! Peace.

Besigye again at Nakawa Court pending the Treason Charge; later in the day detained at Kiira Road as well!

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The nonsense courtship of Dr. Kizza Besigye continues as he was towed from Uganda House to the Courtroom, because valid reasoning for the Police Force at this point, is actually pointless. They just keep his house under siege and house-arrested without warrants and without fresh charges, in the view of the Political Sphere right now, Besigye is guilty for existing.

Therefore his quote in court after being charged in May 13th 2016 by the State Attorney with the Treason Charge section 23 under the Penal Code Act by the powerful D/SSP Mark Odongo of Moroto Magistrate Court. The days he we’re airlifted from Kampala in the midst of darkness while the President Museveni we’re making ready for his Swearing-In Ceremony in bliss lights of dictators at Kololo. Oh Gee, since May the Courts have bounced Besigye more around than Mario Ballotelli have scored this year in the French League.

So when Dr. Kizza Besigye says this, it’s within his right:

“Its now six months since I was arrested but up to now the state has not found the case against me, this court should have dismissed this case if it has powers to do so. I’m not coming back to this court, when they are done with the investigation they can inform me, they know my address or if they want they can arrest me and put me in until they finish their investigations” Dr. Kizza Besigye

President Museveni is now continuing his impunity towards his fellow Opposition, because he knows that he is not popular and has to silence them. The indication is from the rallies recently around up-country where the masses have showed giant support for Besigye and his struggle, which at this is all of theirs.

IGP Kale Kayihura can continue to be the laughingstock and the FBI honorary Police Officer, but his acts is vicious and show of the level of disgrace towards common-sense and justice towards a citizen, who just happen to question the legitimacy of Museveni’s overstaying Presidency.

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As he left for his home in Kasangati, the Police Van took him to the Kiira Road Police Station, as the crowds on Gyaza Roads circulated his car. Which makes the Dictator Museveni sneeze. So the Police had to arrest him again and surely will write him off with a “Procession” charge of some kind, I guess, because that is their M.O.

Peace.

Uganda: Speaker Rebecca Kadaga on the Chronic Absenteeism dragging Parliamentary Work Behind (Audio)

RDC: Communique du Rassemblement (15.11.2016)

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DAPL: Energy Transfer Parterners and Sunoco Logistics Partners Denounce Today’s Announcement by the Army Corps of Engineers (14.11.2016)

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Opinion: The American people now have to live on the philosophy of Slim Charles; Actually fight for the lies of Trump!

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Slim Charles: “Don’t matter who did what to who at this point. Fact is, we went to war and now there ain’t no goin’ back. I mean, shit, it’s what war is, you know? Once you in it, you in it. If it’s a lie, then we fight on that lie. But we gotta fight” (The Wire, Season 3 Episode 12 – “Misson Accomplished”, 09.12.2004).

Why do I start off with Slim Charles as he is talking about fighting a war over corners with Marlo Stanfield in Baltimore and Avon Barkesdal lost his companion and comrade Stringer Bell after he was ratted out… but what I will talk about isn’t the Wire, but it has been the same way with the Campaign and Phenomenon of Donald J. Trump.

Today, I made realisation while taking public transport to work. I thought to myself what has been the main component of Trump’s game-plan. It seems to show as little as possible of policy, as little as possible of political framework and being part of the establishment. But also transparency and accountability has been like aids to the Candidacy of the Republican Candidate Trump.

Another key part of the accountability and transparency is that he has constantly lied. The lies has been staggering and at massive levels. Like the ice that hit the Titanic, it should have sunk the ship of an ordinary campaign, but the American couldn’t care less. Trump lied about his past, his wealth, his education, his lifestyle, his previous ethical background.

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He has lied to public about his wealth, he is not as rich as he claims; if he we’re so he would have given the public the IRS Tax Returns. Because there we would see the real value of the Trump Organization, the golf-courses and the value of ‘the Art of the Deal’; because the toilet paper of stated wealth and ownership is oversaturated. If it we’re the true deal and not a play of cards to the public, since if it we’re true value than it would been given the same value of the estates, businesses and royalties. First lie!

Second lie, must be the portrayal of success in general; is with the bankruptcies in Casinos’ in Atlantic City, Trump Institute and University, Trump Steaks, Trump Vodka, Trump Magazines, Trump Airlines and so on. The success now has been “the Apprentice” on the Television with a dozen of seasons. The rest he has earned money on is stifling his costumers and with dozens of law-suits. Other than because of shady reputation because of that the way of earning revenue hasn’t become of building houses or high-raises, instead it has become a licensing operation. So his name is what makes the money, not his achievements. People are buying into the Trump name, but not the real value of premium products or quality service.

So when he is not as rich as he says he is, another lie; then you have the business-savvy point that settles with a licensing operation and not a true, yet another lie.

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That is the most important parts of his project, as he was a successful businessman who wasn’t a politician. Well, he is more flip-flopping politician and also a cruel one at that. The Political play has been to use the others past against them. Since he wasn’t really a politician; still the Trump has lied about Ted Cruz, John Kasich, and Jeb Bush.

The other lies are is stances, at one point in life he was a very aligned with the Democratic Party, siding with Bill and Hillary Clinton, defending his infidelity and claiming that Hillary was a fine woman. At one point he was defending and saying that the U.S. should go quickly in to Libya and get rid of Col. Gadhafi. Another point where he defended George W. Bush and his father for their wars in Iraq; while on the Campaign Trial he has dined all of this asked for the tapes, asked for the evidence, but the clips are accessible and online for anybody who wants. His Video-Logs are there too, where he speaks of the similar matters too.

The lies are endless, and his image is a lie, his persona and his attitude to. Because he change as needed be, he is said to have a moral flexibility. Well, he has been structured on hatred for immigrants and for foreign interference, he is an isolationist. That is it! The rest hasn’t been steady, on basic minimum wage his stance has changed, on deportation force it has change and the stances are endless.

The worst part is that American Electorate apparently didn’t care, or not enough of them. They have bought into a cobb-web of lies and deceit. They ate it all up and bought into the sellers tale.

I wouldn’t believe the words that come out of his mouth, he only says what he need to say or told to say. He talks against the usage of Teleprompters, but used it freely when it benefitted him. He claimed Mitt Romney released his tax-returns too late, but till this date he hasn’t dropped his and I doubt he will. So his states and statement are pointless, are just needed for his own stature, but not for his character.

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The Character of him only known by his close family and whatever friends he has; to rest of us it is lies upon lies. Deception of who he might be and what he stand for, except for his blatant racists spurges of vomit. Trump has been able to sit in golden chairs and licence out products with golden letters, but his true delivery is his lies. The lie that he is good and want to “Make America Great Again”. He wants to make himself great again, back in the day when he was great and built the Trump Tower with the help of the Mafia. He doesn’t care about the working-class in Wisconsin or Mississippi.

Trump lies and will continue to lie for the benefit of himself and his cause; the cause being himself and his fictions lifestyle. Therefore he wants to spend more time at Mar-A-Lago in Miami, Penthouse in New York, than at the White House. Because he want his loyal minions to work out the perks, while he carry the title. He doesn’t care about anybody else than himself, he wants to spend time on the golf-course and eat the benefits of the Public Office. Not actually work for living, he has lied for living already and wants to relax as President.

Just wait and see, he will spend less time in office than Bill Clinton and George W. Bush, he is more concern about the benefits of being President for his donors, rich wealthy elite; which happens to be the establishment and not the common-man in Michigan or North Dakota.

The man that based his life on lies and built his current business on more lies; the lies that are deceptive and deconstructive to him and to society; that now is the true state of affairs. Trump has the choice either to destroy or rebuild.

But he went to war on that lie like Slim Charles said and now they have to continue to fight on that lie. The lie that Trump had something to deliver other than his own self-constructed bloated ego. Peace.  

RSA: Appointment of Commisioners to the Human Rights Commission (15.11.2016)

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