Philippines: Are we seeing a slow Chinese takeover?

Certainly, the massive loans given to the “Build! Build! Build” are starting to cost. As the big infrastructure projects and other loans are taking their toll on the economy. Therefore, the Philippines and President Rodrigo Duterte are trying to collect something. It seems like the Chinese counterparts are getting lots of collateral and salvage the spent funds in Philippines. Because, as the weeks goes by and the ASEAN friends, the one with the upper-hand is China.

This is surely not how Duterte want it too look, as they are having a bargain. There has already been putting into question the control of Benham Rise and the hard-won control of the island there. Still, the Republic haven’t fought with tooth and nail to get it back. This week, it seems like there are more installations on it. The sovereign Philippines are being toyed with by China. They are being fooled and has to accept deals, because of the loans to Beijing. Manila is indebted and has to give concessions. Why else, would this week be filled with new Chinese interference and getting licenses in the Philippines?

Weather Station Controversy:

“It is currently coordinating with concerned government agencies, as well as with the Philippine Embassy in Beijing to verify the existence or non-existence of these alleged facilities,” he said. Panelo earlier addressed this concern on Monday saying Foreign Affairs Secretary Teodoro Locsin jr. will “do his job” once the reports have been verified. China’s Foreign Ministry Spokesperson Lu Kang announced on November 1 that Beijing has already begun operating weather stations on the artificial islands in South China Sea. “These projects are designed to observe the maritime, hydrological, meteorological conditions and air qualities, and provide such services as maritime warning and forecast, tsunami alert, weather forecast, air quality forecast, and disaster prevention and relief,” Lu Kang said in a press conference” (Janine Peralta – ‘Philippines to take action if Chinese weather stations in South China Sea are verified — Palace’ 06.11.2018 link: http://cnnphilippines.com/news/2018/11/06/ph-china-south-china-sea-panelo.html).

Oil Fields:

One of the projects included an exploration between state-owned Philippine National Oil Company (PNOC) and Chinese state-owned CNOOC Ltd., located off Calamian in southwestern Palawan province, Cusi told Manila Bulletin in a news briefing. Cusi was referring to Service Contract 57 which covers an oil and gas project awarded to PNOC’s exploration unit, and picked CNOOC as a partner. Cusi did not share details for Service Contract 72, an exploration permit held by the Philippines’ PXP Energy Corp. for Reed Bank, but clarified that the Reed Bank, another disputed South China Sea area, is not of the two” (Meanne Rosales – ‘ PH to seal 2 exploration deals with China’ 09.11.2018, link: https://powerphilippines.com/2018/11/09/ph-seal-2-exploration-deals-china/)

Chinese Telecommunication as the Third Telco:

Philippine President Rodrigo Duterte has lauded the entry of China Telecommunications Corp., or China Telecom, in his country’s telecommunication industry, saying the Philippines stands to benefit from the “good competition” that a Chinese company will bring to the industry” (…) “Duterte said that China “has proved to be of very incredibly high quality of electronics.” “(Xinhuanet – ‘Duterte welcomes China Telecom’s operating in Philippines’ 08.11.2018).

As we see, the sudden Benham Rise in the South China Sea and the will of China to takeover the place, while the Malacañang are preoccupied with sneering at priests, Rappler and who else who hurt their pride. They are not seeing or looking away from the sovereign implications on Benham Rise. As there are talks already of military installations, but now also monitoring equipment and a weather station. Clearly, the Chinese sees it as their land, while the PH are busy trying to find out what is happening there.

Than, you have the oil-fields in the same region, where the Chinese National Offshore Oil Company (CNOOC) have gotten licenses to drill oil there. Clearly, this is all intentional, as well as they are the lucky third Telecommunication Company and getting into the Cellphone business too. This is just fitting as a glove. They are both getting territory in the South China Sea, they are getting exploitation opportunities and steady profits through a cell-phone carrier. All this they have gotten for dropping some loans, that is hard for the Philippines to repay in cash.

That is why they are allowed to get these things, as collateral for the debt. This is a game the Chinese plays well. That is why this is all happening. We have seen similar efforts done in Sri Lanka. That will surely happen in the Philippines too. As the Chinese is not forgiving with their loans. They want points on the dollar. Not loose money and certainly not lose face on the investments made. Peace.

EFF Statement on Pravin Mob and R500 Billion Misleading Narrative (09.11.2018)

Museveni even took ‘Another Rap’ without compensating the producers!

There is now a letter leaked that was sent from the Attorney’s of Richard Kawesa, who written a letter dated to the 31st October 2018. The Producers of the song and Production team of ‘Another Rap’ haven’t been compensated for the song released in 2010. That is why they are now using Muwema and Co to claim the lost funds from the President. They are claiming the losses of copyright remuneration of 5 billion shillings plus paying the fees for the Attorneys. As the song has been used.

This is not new in the sense of National Resistance Movement (NRM) and campaigning. The NRM and President Yoweri Kaguta Museveni have struggled to pay for promotional gear in the past, like T-Shirts and Ads even in the New Vision Newspapers. Therefore, that the producers of the ‘Another Rap’ are in a long line of creditors trying to get what is rightfully theirs.

President Museveni are usually late paying these things. Most likely the payment for things concerning the 2015/2016 Campaigns will surface about 2020/2021 or some in 2019. As the lack of payment from the NRM and State House comes as litigation and asking for back-pay for old used services by bus-companies and others.

That is why, that the producers should claim theirs as it became a international thing and also big-thing before the General Election of 2011. All four behind the track production should be compensated and rightfully so. But this follows a long line of people, who has lost money making campaign stuff for the President.

This is yet another rap. Where the President wrapped it up and thought they wouldn’t care. However, the producers deserves to paid for their craft. It was all done and edited as the team wanted, as instructed on email by Private Principal Secretary Grace Akello on the 14th October 2010.

As per letter, they asked for notice and response to the request of salvage of funds. By the end of ten days. Today is 8 days since the sending of the letter. Therefore, since it has been leaked. Surely, the State House and the President haven’t paid the production of the ‘Another Rap’. Which is a shame and also shows the lack of caring for other people’s work.

This is just more crap from the President. Who doesn’t deserve another rap, but needs to fess up the money and shut his trap. Peace.

Opinion: OTT and Social Media Tax is failing as anticipated!

The Over The Top Services Tax and Social Media Tax can only be said as utter embarrassment by the National Resistance Movement (NRM). There are enough things to know this would happen, as the plan was for getting the revenue, but not thinking the consequences of the taxes. That is why, today’s revelations about the levied taxes isn’t that surprising.

Without due-diligence, it is hard to know the effects and the means for why it is put. It seems like the President and the NRM had a dream of cash-flowing into the Consolidation Fund without any consequences, but apparently it does. And when you add taxes on things, people either use less or plan more effortlessly to circumvent this added cost on their daily lives.

Daily Monitor Reports: “Government collected Shs20.5b from social media in the last quarter ended September, according to data obtained from Uganda Revenue Authority. The tax, which was implemented in July, was however, less than the Shs24.9b target that URA had hoped to collect in the period. URA has a monthly target of Shs8.3b. The tax was introduced in the Excise Duty amendments of financial year 2018/19 requiring all social media users to pay Shs200 per day, before accessing certain platforms such as Facebook, Whatsapp and Twitter, among others. Government intends to collect about Shs100b before the end of the 2018/19 financial year” (Christine Kasemiire – ‘OTT raises Shs20b in first quarter, URA fails on targets’ 07.11.2018).

While it is a few days ago, that the MTN Uganda promised the 24 hours since paying tax, that the tax would last from the time of payment of the tax until the time is spent. Instead of how it has been, until the new day coming. Meaning, that often you would only get half-a-day with the Social Media, as the taxation would start again, when the clock turns 00:01.

That is why this was news to: “Airtel Uganda and other telecom service providers have announced a fundamental change in the Over the Top excise duty imposed on social media following a directive from Uganda Communications Commission, the telecommunications regulatory body in Uganda. Since its introduction in July 2018, the tax commonly known as OTT or social media tax, was only valid up to midnight of the payment date for daily users. With the recent changes, daily subscribers can now enjoy internet services for a complete 24 hours – right up to the time that they subscribed 24 hours earlier. This also applies to the weekly and monthly users who can also enjoy services until the time that they subscribed” Brian Emorut – ‘Social Media tax validity to now last 24 hours’ 06.11.2018 – Guide 2 Uganda).

So now, Airtel and MTN has changed their pattern of getting the OTT tax. While URA is struggling to met the supposed the quota. This shows that the state had not considered all implications to the levied taxes. The NRM clearly didn’t envision, either the use of VPN and also that people cannot afford it. Because it is barrier to be even using the social media after the taxes.

Surely, the 24 hours usage and the lack of collection. That the Telecoms and the Mobile Money outlets has been pushed and lost revenue is certain. As the data-bundles and Air-Time had to be corrected from July on and also now the barrier for OTTs are changing again. This is surely showing that the Telecoms and the Republic wasn’t prepared for this, but doing it on orders from the President. Peace.

RDC: Bruno Tshibala – “Concerne: Suspension de missions de controle” (07.11.2018)

Opinion: China is starting to squeeze the Kenyan Economy!

If you were ever thinking that Beijing would loan and build without consequence. Those days should long be gone. The Chinese are planning to earn money on their investments, they don’t care about the Republic’s they are investing in, as long as they are profits on their investments. They want earn on these loans and since the rate of loans are so high. They are now starting to pick collateral for their infrastructure loans, especially the draining of loans to the Standard Gauge Railway (SGR).

While acknowledging China’s leading role in the Kenyan economy as a trading partner, the President called for increased Chinese investments in the country. “China now ranks as the number one trading partner with Kenya accounting for 17.2% of Kenya’s total trade with the World,” he said. “Kenya is open and safe for business. Kenya has one of the most conducive business environments in Africa,” the President added” (President.Go.Ke – ‘President Kenyatta Asks China To Give Preferential Treatment For African Goods’ 02.11.2018).

While Kenyatta are acting as it all positive, the reality is that the state are having giant issues with their “investments” and loans there. But Kenyatta wants to make it sound positive, when it really isn’t, just the rate of the loans have grown and the consequences of the relationship with China is now starting to cost. It is the Kenyans that has to pay these loans down and with every way possible. As the Chinese has leverage over the Kenyan government. Take a look at these quotes from media recently!

Loan Rate in Kenya:

Kenya’s current public debt stands at approximately 4.884 trillion Kenyan shillings (USD$49 billion) or 56.4% of the country’s gross domestic product.. This is up from 42.8% in 2008. In other words, the country owes more than half the value of its economic output (GDP)” (…) “China is Kenya’s largest creditor, holding about 72% of the country’s bilateral debt as of March 2017. Studies show that Kenya’s Chinese debt poses a threat because the loan agreements are not transparent, projects are not well prioritised, accounting procedures are weak and it’s not clear what projects are costing” (Odongo Kodongo – ‘Kenya’s public debt is rising to dangerous levels’ 05.08.2018).

Selling State Owned Enterprises:

The Privatisation Commission has approved sale of 26 state-owned corporations to raise funds to support the budget. The commission, under the Privatisation Act, 2005, was mandated to sell 26 poorly performing state corporations to cut down government spending. Those approved for sale are National Bank of Kenya, Consolidated Bank of Kenya, Kenya Meat Commission, Development Bank of Kenya, East African Portland Cement, Kengen, Kenya Pipeline Corporation, Kenya Ports Authority, and five sugar millers — Chemilil, Sony, Nzoia, Miwani and Muhoroni. Others are Agrochemical and Food Corporation, New Kenya Co-operative Creameries, Numerical Machining Complex and Isolated Power stations, hotels (Kabarnet Hotel, Mt Elgon Lodge Ltd, Golf Hotel Ltd, Sunset Hotel Ltd and Kenya Safari Lodges and Hotels Ltd). Also targetted are Kenya Tourism Development Corporation-associated companies, which include International Hotels Kenya Ltd, Kenya Hotels Properties Ltd, Mountain Lodge Ltd and Ark Ltd” (Cynthia Ilako – ‘State to sell 26 companies to finance current budget’ 03.11.2018, The Star Kenya).

China Selling Infrastructure Loans to Investors:

The plan will see Hong Kong mortgage insurer Hong Kong Mortgage Corporation (HKMC) buy a diverse basket of infrastructure loans next year and explore the idea of “securitising” or repackaging them into securities for sale to investors, allowing it extra liquidity that it can loan out to finance more infrastructure projects. “This initiative we believe will help ‘recycle’ commercial banks’ capital to be redeployed into other greenfield infrastructure projects, besides enabling wider capital markets participation in infrastructure development under the Road and Belt initiative,” said HKMC Greater China chief executive Helen Wong” (Allan Olingo – ‘China plans to sell off its African infrastructure debt to investors’ 05.11.2018).

We are seeing the growth of loans, that is up 42,8% and the debt level of the 56,4% of the GDP. Because of that, the state are now selling of their State Owned Enterprises. Most likely to Chinese holding companies and investors, who are expecting to gets points on their dollars. As well, as securing their future on the investment. They are selling the central institutions and businesses, which was state controlled, but they will now become para-stalls of the Chinese.

But selling the institutions are not enough for the Chinese. They are planning to take it further. Planning to rehash the loans as sub-prime loans for investors, meaning they are taking the risk instead of the Export-Import Bank of China, where the loans are usually collected and distributed from. Therefore, the loans are another target of more profits as they want to earn on them as well into the Capital Market. Just like the US Banks did with House Loans and mortgages in the past.

While all that is happening and with the knowledge of this, the President is still keeping it cool. Kenyatta is still not saying the brazen truth, that they are a debt-slave to China. Are in such big trouble, that the investment of the SGR are killing the economy and they have to trade-off their assets to keep up with their payments. That is what is happening and this is not really developing, but hurting the economy even more. As this institutions and businesses has been controlling their markets. Now, they will have masters from outside, which are not there to secure the market, but make a direct profit. Therefore, the citizens are not only paying their loans for the railroads, but for destroying their economy. Peace.

Opinion: Jubilee rocked by another Maize Scandal?

In this treacherous world

Nothing is the truth nor a lie.

Everything depends on the color

Of the crystal through which one sees it” – Pedro Calderón de la Barca

The Jubilee government have another level of corruptness over themselves. The President is brazen in his public fight with corruption, but the behavior of the government is corrupt as it possibly can be. The things of nature, is that it repeat itself. This time without government subsidizes like it was on the way to the Fresh Presidential Elections of 2017. When the maize was subsidized and the maize came from Mexico. Then rebranded and restocked as local produce.

Now, were in the middle of 2018 there was also extra attention to it, as the National Cereal and Produce Board had already bought imported maize to stock, while the locals had to get lesser pay while selling to the millers. As that has happen and the months has gone by, there are now reports. That the NCPB silos has destroyed 60% of its maize. That is imported maize that has already cost the taxpayers about ksh. 9 billion and now they have to import more. This is happening right in the 4 Quarter and before the festive seasons of Christmas Carols and jingle bells.

Clearly, this seems like a ploy, as the Deputy President William Ruto are promising farmers more money and another ksh. 2 billion to buy more stock. This is consequence of the importing of 4.4 million bags of maize. We can wonder who are earning fortunes on these games with the farmers and with the citizens needing to buy the maize flour, the UNGA. This is the staple food the government is making a mockery of.

This is meanest way of destroying confidence and also showing utter disgrace of office. As the NCPB and Ministry of Agriculture, the CS Mwangi Kiunjuri and Chairman Mutea Iringo. Both of them should come clean in this mess. It is evident there is something behind the curtain and someone is trying to fool someone. As the NCPB and CS Kiunjuri should spare no mind, explaining how they could buy rotting maize and toxic of it, while also struggling to pay local farmers. If not, there are something else going on.

As there other interests, than paying the farmers a fair price, as the imported ones from Uganda and Mexico is hitting the markets at a lower price. While the farmers struggle to sell their produce to the NCPB. This is all deliberate acts, as the millers and cartels are securing huge profits of the imported ones. While the local produce are wasted and destroyed. Now, even the foreign ones isn’t all good and suddenly destroyed. The utter chaos and the mismanagement is clear. Even as the NCPB are calling themselves “The Leaders in Grain Management”. When concerning Maize, they are not, unless they are following orders of cartels and from above.

This all seems weird, it all seems like a deliberate act of misconception to get higher prices, trick the citizens and get more profits for the millers and importers. Not to generate a better environment or even selling the staple food at a reasonable price. The Jubilee government have tried to trick the public before with UNGA. Therefore, I am skeptical about the beneficiary and the ones getting paid by this scheme. As the amounts of money and the toll on the economy, as the NCPB and Ministry should know better.

Clearly, another Maize scandal, but this government are rocking with scandals all the time. Peace.

EFF statement on Tito Mboweni’s Right Wing and Reactionary Economic Policy Positions on SAA and South African Reserve Bank (02.11.2018)

MTN Uganda: Daily OTT tax now valid for 24 hours (01.11.2018)

RSA: EFF Statement on the Increased Unemployment Rate (30.10.2018)