Och-Ziff Company and subsidiaries implicated in bribing Guinean, Zimbabwean and Congolese Authorities to get favourable business operations in these nations, Raid January 2017 report claims!

guinea-mining

“The Home Secretary, Amber Rudd, at the FCA’s 2016 Financial Crime Conference, stated:15 ‘The UK is attractive to criminals and corrupt kleptocrats who steal billions from their own people, often some of the poorest people in the world.’ The Home Secretary concluded: ‘If…we develop world leading legislation to combat financial crime whilst continuing to develop the capabilities of our law enforcement agencies, then we will reduce the flow of dirty money into the City….’” (RAID, P: 14, 2017).

Well, this is not the first or the last time we will discuss mineral-resources and the extractions of these to gain quick profits, either in sophisticated ways of administrative affairs between the ones the licence the operations to the company, which usually is government officials who are pocketed by subsidiaries if multi-national corporations; this is happening in the Democratic Republic of Congo, Zimbabwe and Guinea. As showed in the RAID report of January 2017: “Bribery in its purest form”; that I will uncover certain parts of to show the apparent companies and holding-companies that are owning and operating in the these countries by bribing officials to export minerals. They get ownership of giant mines and resources from these nations as they are licenced after favourable transactions for the governments, as they are kept bribed to uphold production as well.

This happening in nations that are sanctioned and has sanctioned persons that should stop these transactions and licences of United Kingdom and United States corporations, even if they have shell-companies and official headquarters in Tax-Havens that proves the ability of extracting the massive fortunes in these minerals, without proper transparency in the nation they operate with their mining operation.

I think the report should speak for itself and should be publically known to show how they are able to take the monies, profit and also bribing the officials without any consequences, even when the nations of Zimbabwe and DRC had sanctions against it; still the His Majesty Treasury of United Kingdom didn’t stop the transactions and trade with them. This proves that the UK Government doesn’t care about their own sanctions and how their businesses are operating without judgement and fear of getting fined for breaking laws to get rights and takeover mining operations in other countries.

Take a look! 

The review of mining licences that the Congolese government embarked on in 2007, which was supposed to clear up the murky legacy of wartime contracts, provided Och-Ziff and its collaborators with a golden opportunity to snap up valuable assets at knock-down prices. Working with the Congolese political elite, this group were able to exploit the threat of expropriation or revocation of mining permits to their own advantage. By 2014, according to Forbes Magazine, President Joseph Kabila had amassed an estimated personal fortune of US$15 billion in just over 13 years of power.xxiv In 2015, The Sunday Times Rich List estimated Michael Cohen’s wealth to be £335 million (US$500 million). Forbes puts Daniel Och’s (the founder and CEO of Och-Ziff) net worth at US$2.5 billion and Dan Gertler’s wealth at $1.18 billion. The DRC is one of the poorest and least developed nations in the world, ranked 176 out of 188 countries.xxv Almost 87% of its 69 million people live on less than $1.25 a day. Put another way, that $1.25 each day equates to $450 per year, and with life expectancy of 58 years, Och’s personal fortune would last the lifetimes of more than 95,000 Congolese at today’s values” (Raid, P: 10, 2017).

Och-Ziff subsidiaries:

“Mvela Holdings is incorporated in South Africa.31 Mvela Holdings is described in the Och-Ziff release as ‘a private investment company founded in 1998 by Tokyo Sexwale, Mikki Xayiya and Mark Willcox. It is the controlling shareholder of JSE-listed Mvelaphanda Group Ltd and has a significant interest in JSE-listed Mvelaphanda Resources Ltd. It has other substantial privately held interests in the mining, energy, real estate and various other industrial sectors in South Africa and Africa.’ It appears that Mvela did not ultimately participate directly in AML” (…) “Palladino Holdings is described as a private investment vehicle, founded in 2003 by Walter Hennig holding ‘a variety of significant mining, energy and other assets in Africa.’32 A company under the name Palladino Holdings Limited is registered in the UK, and recorded as originating in the Turks & Caicos Islands.33 Other market notifications that refer to Palladino Holdings Limited as a shareholder give an address for Palladino in the Turks & Caicos Islands.34 Palladino Capital 2 Limited, a closely-related Palladino subsidiary behind a controversial loan to the Guinea government (see below), is registered in the British Virgin Islands” (…) “Other than Och-Ziff employees, directors of Africa Management (UK) Limited include or have included, Walter Hennig (Palladino), Andre Cilliers (Palladino) and its chief executive Mark Willcox (also Chief Executive Officer of Mvela Holdings)” (Raid, P: 17, 2017).

Guinea agreement:

“Och-Ziff Employee A and Och-Ziff Employee B, along with the CEO of AML and South African Business Partner, conceived of a related-party transaction that would accomplish these goals….According to the deal documents, South African Business Partner was to buy 31.5 million shares in the oil and gas company from the South African conglomerate for $77 million and then immediately resell 18.5 million of those shares to AGC II for $77 million.…” (…) “Contrary to the deal documents…Och-Ziff Employee A and Och-Ziff Employee B knew that South African Business Partner would not pay the full $77 million to the South African conglomerate. South African Business Partner bought 31.5 million shares…for only $25 million, and then immediately resold 18.5 million shares in that same company to AGC II for $77 million, providing South African Business Partner with $52 million and an additional 13 million shares in the company. With the $52 million, South African Business Partner then paid $2.1 million to Och-Ziff to satisfy an outstanding debt relating to AGC I (in which the Investor had no interest), $25 million to the government of Guinea to try to secure access to valuable mining investments there, $1 million to the agent affiliated with the a high level Guinean government official and his family, and the remainder to personally benefit himself and his business partners” (RAID, P: 19, 2017).

Guinea 2011:

“In or about March 2011, a company controlled by Coconspirator #1 [‘the beneficial owner of the Turks & Caicos Entity’ ] entered into an agreement with the Guinean government, which gave the company the option to buy into the SOMC [‘Guinean state-owned mining company’]. On or about April 29, 2011, an affiliate of the Turks & Caicos Entity loaned the government of Guinea $25 million as part of a deal to become a partner in the SOMC. Coconspirator #1 raised the $25 million through a related-party stock sale to the Joint Venture. MEBIAME signed the loan document on behalf of the affiliate of the Turks & Caicos Entity. According to MEBJAME, the partnership with the SOMC ultimately did not go forward due to negative press accounts, which indicated that the deal between the Guinean government and Coconspirator #1 was corrupt” (…) “He [Alpha Condé] said that he agreed. So we made the loan, we signed the loan to Soguipami…,and so I was authorised to sign and make the transfer.’ Another exhibit – a witness statement, from a UK High Court case, made by the chief executive of a company advising BSGR – states:67 ‘funds were transferred to Alpha Condé by way of a recorded loan of $25million and further unrecorded transfers believed to be “much much more”….Alpha Condé attempted to reward his backers. He entered into an agreement known as the Palladino Contract, pursuant to which the provider of the $25million loan would, on default of the loan, become entitled to a 30% share in a new Guinean national mining company established by Alpha Condé.’ Other exhibits in the ICSID case refer to Walter Hennig and AGC” (RAID, P: 20, 2017).

DRC laundering of mining exports:

“Gertler’s use of London markets to launder DRC assets began with another AIM-traded entity, Nikanor plc. Nikanor plc was described as ‘the holding company of a Group with copper and cobalt assets in the DRC’. The company was incorporated and headquartered in the Isle of Man.87 On 17 July 2007, Nikanor was admitted to AIM” (…) “In the Nikanor admission document, reference is made to allegations that Dan Gertler ‘acquired a temporary monopoly on sales of diamonds from the DRC as a result of improper dealings with the Government of the DRC’.88 The Nikanor admission document concludes that: ‘These allegations do not relate to the Company [Nikanor], the Group or any of their activities. They concern Mr Gertler in his capacity as a shareholder.’ Yet it is stated under ‘risk factors’ in the admission document: ‘…each of the Major Shareholders will be able to exercise significant influence over all matters requiring shareholder approval, including the election of Directors and significant corporate transactions.’ Moreover, there is also a reference to how the group of Nikanor companies with mining assets in the DRC and ‘some of the Major Shareholders’ have been ‘subject to criticism from a number of NGOs’ which included lack of transparency in the process by which the assets were awarded, the absence of public tendering and a joint venture agreement ‘unreasonably favourable to the Group and that as a result Gécamines [the DRC’s state-owned mining company] has not received proper consideration for valuable assets with a resulting detrimental effect on the economy of the DRC”(RAID, P: 22 ,2017).

Another DRC Agreement – Camrose transaction:

“The DOJ refers to ‘a $124 million convertible loan through a subsidiary company and AGC to Company B, a DRC Partner-controlled shell entity, funded in or about and between April and October 2008 (the “Convertible Loan Agreement”)’.121 Under the heading ‘C. Corrupt Takeover of DRC Mining Company’” (…) “the SEC Order states: Also in April 2008, Och-Ziff caused AGC I to enter into an approximately $124 million convertible loan with a holding company affiliated with DRC Partner. The stated uses of these funds were threefold: first, to provide DRC Partner with approximately $15 million to purchase a Congolese entity that had acquired the rights to a valuable mining asset in the DRC (the longstanding asset of a Canadian mining company) through an ex parte default judgment in the DRC that resulted in judicial misconduct proceedings; second, to provide DRC Partner with approximately $100 million to purchase a majority stake in that Canadian mining company in exchange for resolving its legal issues; and third, to advance an additional $9 million to be used for future mining operations in the DRC” (RAID, P: 26, 2017). “The transaction gave Och-Ziff control over what assets could be bought or sold by the entity, equity conversion rights into DRC Partner’s entity, a pledged interest in the shares of the Congolese entity, and a right to future deals with DRC Partner in the DRC. Moreover, the transaction gave DRC Partner complete discretion over how to use approximately $24 million of the funds provided by Och-Ziff. Further, Och-Ziff understood this transaction was part of a broader, ongoing partnership with DRC Partner. Finally, both Och-Ziff Employee A and Och-Ziff Employee B knew that DRC Partner was going to use a portion of the funds to pay bribes, and knew that the transaction was structured to accomplish that goal. This knowledge was not shared with others within Och-Ziff or with outside counsel” (RAID, P: 27, 2017).

drc-business

Camrose II:

“A 50% interest in Société Minière de Kabolela et Kipese Sprl (‘SMKK’) was acquired on 9 November 2009 as part of the CAMEC acquisition….In 2009 the Group acquired an option, for a cash consideration of US$25 million, to purchase the outstanding 50% of the issued share capital of SMKK by acquiring the entire issued share capital of Emerald Star Enterprises Limited (‘ESEL’), (an entity controlled by the Gertler family trust), the owner of the outstanding 50% of SMKK. The Group exercised this option and the acquisition of ESEL was effectively completed and control obtained by the Group in June 2010. The total cash consideration in respect of the outstanding SMKK shares, inclusive of the US$25 million option, amounted to US$75 million” (…) “Throughout the period of DRC Partner’s acquisition of Kolwezi Tailings and SMKK, DRC Partner continued to make corrupt payments to DRC Official 2. For example, on or about December 23, 2009, DRC Partner delivered $1 million to DRC Official 2; on or about January 5, 2010, DRC Partner delivered $2 million to DRC Official 2” (…) “On or about August 20, 2010, Mining Company 1 acquired 50.5 percent of Company B. Mining Company I agreed to pay up to $575 million over two years, including $50 million in cash. Och-Ziff Employee 3 and Och-Ziff Employee 5 were informed by a co-conspirator that the $50 million was for DRC Partner to “use on the ground” to corruptly acquire Kolwezi Tailings. As part of the deal, Mining Company 1 guaranteed repayment of the Convertible Loan Agreement through a novation of the loan” (RAID, P: 30-31, 2017).

Camrose Resources Limited, BVI company number: 1055983, incorporated in the British Virgin Islands on 9 October 2006. “ (…) ”124 According to the company website: ‘The Fleurette Group is comprised of various businesses organized under Fleurette Properties Ltd., a company established in 2006 for the benefit of the Gertler Family Trust.’ (<http://fleurettegroup.com/&gt;). A press release attributed to Fleurette Properties Limited states: ‘The Fleurette Group of Companies is a Dutch-resident group of companies whose primary activities are the investment in, exploration, exploitation and development of mining assets in Africa. The parent company of the group is called Fleurette Properties Limited, which is owned by Line Trust Corporation Limited strictly and solely on behalf of the Ashdale Settlement, a trust established in 2006 for the benefit of the family of Dan Gertler.’” (RAID, P: 58, 2017).

“Camrose is described as holding indirect interests in five copper and cobalt exploitation licences in DRC, including a 70% interest, via the Highwind Group, in Metalkol Sarl, which ENRC states as owning ‘the tailings exploitation licence covering the Kolwezi Tailings Site (otherwise known as the Kingamyambo Musonoi Tailings, or “KMT”) (PER 652)’. See ENRC plc, ‘Acquisition of 50.5% of the Shares of Camrose Resources Limited’, op. cit” (RAID, P: 59, 2017).

UK gives Concent to Camrose transaction:

“Consent for the Camrose transaction was therefore sought from the UK authorities, consent that was clearly forthcoming. ENRC sought to prevent publication of media reports relating to the SAR: 101Reporters has published not only the SAR, but also the letter it received from ENRC’s lawyers, which stated: ‘you will respect the public interest in maintaining the confidentiality in SARs and remove that aspect from your article.’” (RAID, P: 33, 2017). “There is a permissive pathway by which mines and minerals from zones of conflict and weak governance are transferred to companies trading on AIM who, in turn, through a process of acquisition, transfer these tainted assets to companies in the premium segment of the main market. This process can only be described as asset laundering. Certain of ENRC’s Congolese and Zimbabwean assets, at the heart of the SFO criminal investigation, were derived from the acquisition of AIM-traded Central African Mining and Exploration Company Limited (CAMEC), which was allowed to flourish unchecked on the junior market, despite a myriad of compliance issues that have never been addressed by AIM Regulation” (RAID, P: 34, 2017).

zim-platinum

Zimbabwe Platinum deal:

“On 11 April 2008, CAMEC announced the acquisition of an interest in platinum mining assets in Zimbabwe via its acquisition of 100% of Lefever Finance Ltd, registered in the British Virgin Islands.209 Lefever owned 60% of Todal Mining (Private) Limited, a Zimbabwean company, which held the rights to the Bougai and Kironde claims south west of the city of Gweru in Zimbabwe. 210 The remaining 40% of Todal was held by the Zimbabwe Mining Development Corporation (‘ZMDC’), wholly owned by the Government of Zimbabwe” (…) “…The consideration paid for Lefever was a cash payment of US$5 million and the issue of 215,000,000 new CAMEC ordinary shares. CAMEC’s announcement of the acquisition stated:211 ‘Furthermore, CAMEC has agreed to advance to Lefever an amount of US$100 million by way of loan to enable Lefever to comply with its contractual obligations to the Government of the Republic of Zimbabwe. Repayment to Lefever is to be made from the ZMDC’s share of dividends from Todal.’” (…) “According to the company’s own 11 April news release announcing the Zimbabwean platinum deal, CAMEC advanced the $100 million loan to Lefever to enable it ‘to comply with its contractual obligations to the Government of the Republic of Zimbabwe “ (PAID, P: 38, 2017).

“Och-Ziff had control over divesting from CAMEC after the platinum deal was announced (Mugabe and senior Zimbabwean government figures were already designated under US sanctions) or after the designation of both the Zimbabwe Mining Development Corporation (ZMDC – CAMEC’s state-controlled partner in the platinum venture) and Billy Rautenbach, later described by the US as a ‘Mugabe crony’. Och-Ziff, however, held onto its CAMEC shares into 2009, selling its remaining holding only when ENRC acquired CAMEC in November of that year” (RAID, P: 41, 2017).

Important Notes:

Africa Management is referred to in the Memorandum of Association of Camrose Resources: ‘…Africa Management Limited, a company incorporated in Guernsey with registered number 47651 and whose registered office is at Ogier House, St Julian’s Avenue, St. Peter Port.’ (See Memorandum and Articles of Association of Camrose Resources Limited, Incorporated 9 October 2006, Amendment registered in this 20th day of November 2008, Memorandum of Association, 10 Definitions and Interpretation, 10.1, “Africa Management Limited”)” (RAID, P: 55, 2017).

Mail&Guardian graphic about how Tokyo Sexwale investing in Gertler corporations.
Mail&Guardian graphic about how Tokyo Sexwale investing in Gertler corporations.

That this company Och-Ziff and their subsidiaries are handling their business in this way is not acceptable, the way they are catering to corrupt government officials and stifling the citizens of the nations they are earing fortunes. These corporate-stooges are writing-off dozens of nations desirable taxes and regulated levies on businesses. As they are bribing both high-level like Alphe Conde who accepts the deals in Guinea, as well as friends of Joseph Kabila in Democratic Republic of Congo, even getting Tokyo Sexwale the former minister of ANC in South Africa to be parts of their network. These levels of bribing and usage of political connection to get resources and takeover companies with ownership of licences of profitable mines, proves the graft and bribe that occurs to secure extravagant luxury for the government officials that are accepting these deals.

The Och-Ziff are using these subsidiaries and corporations to money laundering or tax-exempt them to gain more profits on the mining in the nations. Certainly done with the leadership knowledge and showed their employee tactics to bribe and secure the transactions and ownership of profitable mines. That is certainly the reason for these sophisticated business-models, that enrichen the corporate leadership and gives government officials giant envelopes to give away nations vital resources. These well-planned well-crafted companies that uses all kind of loopholes and ways to escape the punishment for their breaching of international and national law to salvage as much profit as possible.

The long-term effect is certainly that the Guinean, Congolese and Zimbabwean government get less tax on the dollar as the corporate leadership pays them directly a smaller fee, than actually paying the legitimate taxation for their operation and their owned businesses. These actions shouldn’t be in the wind, it should be in the public and be addressed, even send the corporate leadership and government officials should answer to the public thievery as the minerals are taken without proper legal rights because of the fraud, secondly the corporate and the government officials are implicated in the thievery and should be sanctioned by courts and under the rule of law. Third the corporations themselves should lose the licence and the mining operations as they got them without proper procedure and there is invalid. They should also be fined and get banned from working in this nations or the corporations with these corporate bosses that are acting for them to gain this default destructive profits. Peace.

Reference:

Rights and Accountability in Development (RAID) – ‘‘Bribery in its purest form’: Och-Ziff, asset laundering and the London connection’ January 2017

Opinion: 2016, the year fake news became a thing!

iraq-wmd

“A wise man told me don’t argue with fools. Cause people from a distance can’t tell who is who.”

Jay-Z

Not that it is news that it’s has existed fake-news. Fake stories and dubious tales to change the outcome and change the demeanour of a nation to swing them to a cause, if it is war, to annex a state or change internal policies; this been done through propaganda, done through blasting tunes on the radio and spreading ill-will on the air. This is well-known methods to sway public opinion.

You begin with altering the truth, making something unbelievable believable, because of former pattern and also history of certain actors that is known. Just as the American Government under George W. Bush, with Dick Cheney and others used all kind of tricks and foul play to target the regime under Saddam Hussain in Iraq; this done with the lie of massive loads of Weapons of Mass Destruction (WMD), that we’re stockpiled and also imported from various sources even inside Niger and Chad. The Iraqi culprits couldn’t even find the nations on map if their lives depended on it. Still, the people behind spreading this news has walked proud-cock for decades and not asked for their favour to humanity. It isn’t just Tony Blair and George W. Bush who worked for an illegal war, also the men and woman who forced the news of ill-intent in Iraq; which wasn’t true.

“Duelfer portrays the United States as a lumbering superpower whose top policymakers, particularly in the White House and the Defense Department, lacked any basic understanding of Iraq’s history, motives and leaders. But he says Iraq also routinely misread American intentions and overestimated the capability of U.S. intelligence. He says that according to an Iraqi government account, Hussein once asked his top commanders if Iraq had any hidden weapons he didn’t know about” (…) “Duelfer describes numerous requests from senior Iraqi officials to start a dialogue with the United States to improve relations. “Each time I passed on such entreaties to Washington, there was never an answer,” he said. “If nothing else, they were missed opportunities for Washington to gain more knowledge.” (Lynch, 2009).

This is just proof of old history where the media together with government(s) are misleading the citizens to sway them for a war or conflict. As much as this can be countered with facts, the ones that swallow it with feelings will not change opinions with facts. Therefore with the current American election, certain stories has run and been eaten up, while not being true.

“The left has been hysterically pushing a new meme, “fake news.” While ostensibly neutral in practice it is subliminally weaponized as another lame vector — along with attacks on the electoral college and so forth — to undermine the legitimacy of the election of Donald Trump. Love Trump or hate him, he won” (…) “The real “fake news” scandal, of course, lies in the mass hallucination by the mainstream media that Hillary Clinton had a near lock on the general election. The overconfident reports of this reportedly led the Clinton campaign to make some unforced errors which just might (or might not) have cost her the election” (Benko, 2016).

Though other lies during the campaign we’re lizards inside Hillary Clinton’s body, that they had killed a dozen of people and we’re part of grand conspiracy, which apparently is bit funny in hindsight as the Trump Administration is more establishment than ever before, with more businessmen and close tightknit Wall-Street that Clinton was a hired puppet for. So the concern of these reports, the news that we’re created to cater the Trump supporters should be worrying as these conservative news and pages are spread like wildfire.

The third person effect involves more, however, than simply a psychological tendency to assume that others are more easily influenced than oneself; this hypothesis also suggests that people may take significant actions based on these perceptions. It is these actions that ultimately comprise the ‘effect’ brought about by third person perceptions. For this component of the third person hypothesis evidence is again indirect, but suggestive. Some evidence of third person effects is documented in studies of candidate viability. Bartels (1988), for example, suggests that media coverage emphasizing ‘horse race’ aspects of presidential primaries affects perceptions of various candidates’ chances of winning. The perceived viability of candidates in turn influences the attitudes and behaviors of primary voters in choosing among presidential hopefuls. In this case, as in the third person effect, the influence of mass media is brought about indirectly through impersonal impact on how people think others are thinking. The ultimate effect in this case is a vote choice, but other changes in attitudes or behaviors may also result from third person processes. For example, perceptions of viability also have been found to influence reporters’ allotment of news coverage to various candidates (see Goldenberg and Traugott, 1984)” (Muntz, 1989).

This isn’t just pizza-gate, or Bruno Mars dancing on Mars. This is the rational reality that gets naïve men and woman sucked into these stories. They have been spread on Facebook, Twitter and other places to tell our friends and family of the articles from credible sources. Some stories are click-bait to get more people to read on the newspapers and other sites. These are so common that the articles you read after is looking credible, but apparently your scepticism should be true, because when it looks to real and beautiful the deal is fake. The same is also with the well written and articulated stories, that doesn’t have bound with reality and doesn’t seem to be legit.

That people would question this page, I understand, as I am not in writing in my own name. Still, most of the time, I use sources and reports to clarify my own understanding and what sway my opinion. Still, people should scrutinize me too, as much as I pick up wrong sources myself. There are some out there that want to change public opinion and want to bring some people down and get other to rule, or get silence over the acts of evil that is occurring as we speak.

Coler a fake-news writer:

“At any given time, Coler says, he has between 20 and 25 writers. And it was one of them who wrote the story in the “Denver Guardian” that an FBI agent who leaked Clinton emails was killed. Coler says that over 10 days the site got 1.6 million views. He says stories like this work because they fit into existing right-wing conspiracy theories” (…)”The people wanted to hear this,” he says. “So all it took was to write that story. Everything about it was fictional: the town, the people, the sheriff, the FBI guy. And then … our social media guys kind of go out and do a little dropping it throughout Trump groups and Trump forums and boy it spread like wildfire.” (Sydell, 2016).

ht_fake_news_acai_nt_110420_wmain
It’s fake, but looks grand, right?

When you know that these stories hit a certain well-known perspective, a well-known agenda to be spread and to be fitted into believed atmosphere than you know that the Trump supporters would share it and believe it, even if Coler knew it all was just a lie. The lies that we’re to hurt the Clinton Presidential Campaign; this should worry and concern that major parts of the populations are following conspiracies over reality.

“But the incentives to create and distribute fake news are not only financial, and All-Star Macedonia Crying Eagle Number-One News and Views Very Good is not the only kind of fake-news website undermining the media infrastructure necessary for a functioning democracy. Trump’s nominee for national security adviser, a Jack D. Ripper type named Michael Flynn, has a particular fondness for publishing fake news to his Twitter account, as does Trump’s campaign manager, Kellyanne Conaway. Even nominally anti-Trump Republicans like Nebraska senator Ben Sasse have gotten into the fake-news business, entertaining ideas of “paid protesters” on the same day one of the most prolific fabricators of fake news admitted that the most widely shared account of paid protesters was wholly made up” (…) “This is, uhh, extremely weird, at best. Traditional news organizations, to state the obvious, are not built to survive an economy like that. You know who is, though? Politicians. The scary thing about “fake news” isn’t just that it’s financially incentivized by our new platform-gods, it’s that it’s socially and ideologically incentivized by them in ways that can’t be fixed without dismantling their entire operation. And, further, that the people best primed to benefit from “fake news” aren’t Macedonian teenagers hoping to buy guitars but leaders willing to untether themselves from truth in exchange for the powerful organizing capabilities of a passionate online audience” (Read, 2016).

We as citizens should let these fake news being spread on social media, neither on blogs nor on other platforms. The reality is that just like Ponzi-schemes, when it seems too real to be true, it most like is. The same can be said about Fake-News that is to cater one part of the population and to shelf the real ones. The time spent on fake-news should concern the media houses and newspapers as their legitimacy is under question, the main-stream media that has been under attack. It still is, and will be for a while as the people want the spread the fake ones.

The deception, this is the real danger, it is democratic that fake stories spread and that the population are involved in the reason for the existence. As long as facts doesn’t matter and the ignorance is growing of fact-checking is dying, this is a pre-existing state that will not die down, because as long as the clicks and spreading of these fake stories happens. They will continue to write them and spread them, as long as the Republican Establishment uses them and take them as real. The Main-Stream media will discuss it and put it into the spotlight.

We can do what we can and question our use of media houses and of what we find online. We should read with caution and question the sources. We should be critical too it and not take it for granted the articles, the news and that the reports has the time or the effort to look through the feed, the agencies input or even what the editor sees as important.

time-plagarism

Media bias:

“However, it must also be acknowledged that the myth surrounding the existence of perceptible media bias is not without some small modicum of truth. Advocates of the existence of said bias commonly cite a number of professional patterns and standards of conduct historically employed by journalists (though are not exclusive to “liberal” journalists) in an effort to manipulate the depiction and depth of information presented each day to the American public. Such techniques discussed included six main types or styles of biases, including; gatekeeping information (i.e. purposefully selecting ideologically reaffirming stories for syndication), employing partisan source selection, omission of (potentially contradictory) facts, manipulating the degree of attention and calculable time devoted to a given issue, and finally, openly displaying narrative, subjective contempt for objective facts” (Quackenbush, 2013).

With this in mind, the third person effect, also the media bias. Together with this we can see why the effects of distrust to the media, as it itself created. Fake News will continue to flourish as long as the public cater to it and are in disbelief of the corporate media as much as mass media trying to control the belief of the public. Something they have lost control with all the platforms, as they are not just following Fox News, CNBC or the other main-stay TV Station and Radio, reading the one newspaper, but following digital media that can come from whatever source. This shows the current state and the state of the media in our time, as the fake news can be easily spread and change the opinions of the third persons.

These all are factors and we should question our own use of media, how we perceive the news and how we question the facts… we cannot stop the propaganda, neither fake news, we just have to clear the way and show the opposite waves and counter with productive arguments that can show the reality to those that eats into the fake, the not real and not believable news. Peace.  

Reference:

Benko, Ralph – ‘’Clinton Beats Trump’ Is The Real ‘Fake News’ Scandal’ (12.12.2016) link: http://www.forbes.com/sites/ralphbenko/2016/12/12/clinton-beats-trump-is-the-real-fake-news-scandal/#69090a3529e6

Muntz, Diana C. – ‘THE INFLUENCE OF PERCEPTIONS OF MEDIA INFLUENCE: THIRD PERSON EFFECTS AND THE PUBLIC EXPRESSION OF OPINIONS*’ (1989)

Lynch, Colum – ‘Ex-CIA Investigator’s Book Describes Hunt for Weapons in Iraq, Saddam Hussein’s Final Days’ (31.01.2009) link: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/30/AR2009013003430.html

Read, Max – ‘Donald Trump Isn’t Just Benefitting From ‘Fake News’ Websites — He Is One’ (18.11.2016) link: http://nymag.com/selectall/2016/11/trump-doesnt-just-benefit-from-fake-news-sites-he-is-one.html

Sydell, Laura – ‘We Tracked Down A Fake-News Creator In The Suburbs. Here’s What We Learned’ (23.11.2016) link: http://www.npr.org/sections/alltechconsidered/2016/11/23/503146770/npr-finds-the-head-of-a-covert-fake-news-operation-in-the-suburbs

Quackenbush, David – ‘Public Perceptions of Media Bias: A Meta-Analysis of American Media Outlets During the 2012 Presidential Election’ (2013).

Opinion: Polarization will be the key protocol to follow in 2017!

History Immigration

No matter if it is local politics, if it international or trade, the most important backbone to policies in the next year will be polarization. That is not Polar Bears dancing on the dwindling ice, if so the U.S. TV station would have better ratings. No, this is the importance of local and national industries, while stressing ignorance towards immigration and imports to add more GDP value and also stop inflation. A balance that is hard to carry as the trust in local currency and local production doesn’t change overnight. That has to happen with steady policies and ability to trade products and create market for the ones that we’re in the past produced far away.

Definition of polarization

1:  the action of polarizing or state of being or becoming polarized: as

a (1) :  the action or process of affecting radiation and especially light so that the vibrations of the wave assume a definite form (2) :  the state of radiation affected by this process

b :  an increase in the resistance of an electrolytic cell often caused by the deposition of gas on one or both electrodes” (…) “2 a :  division into two opposites b :  concentration about opposing extremes of groups or interests formerly ranged on a continuum” (Merriam-Webster – Polarization, link: https://www.merriam-webster.com/dictionary/polarization).

We are dividing ourselves while the world is into more conflicts that need assistance and securities to secure peace. There internal conflicts in Burundi, Democratic Republic of Congo, Ethiopia, South Sudan, Somalia, Afghanistan, Yemen and Syria. Where the conflict is bloody, where people are detained for the political affiliation, where innocent dies in the streets and where guns are imported to silence the ones who is not succumbing to the regimes who hold power.

We are living in a time where opposition victors doesn’t get into power, because the leaders of old are not allowing and keeping power by the gun, are using the police force and army to monitor the opposition and even rigs the election to secure the “validation” of their rule. This has happen in many Republics and Nations this year and proves that progress of governance and accountability is dying, like innocence and justice is impartial and only for the elites. The rest of us just have to be lucky to see just systems and laws for the common folk.

Like Adama Barrow is the President-Elect in Gambia, Jean Ping should have become the President in Gabon, Dr. Kizza Besigye in Uganda and Moise Katumbi should have risen to power in DRC if there we’re any justice and transition of Power in the Republic. But the big-man and long ruling Presidents of these nations doesn’t give-in or leave office. They continue to stay without any fear or without any mercy as the monarchs they acts of. Instead keep polarising the political elites and societies with paying the elites and silencing the ones who stand in their path. Also, by forging alliances with nations to make sure justice doesn’t prevail in their path.

While these tragedies are appearing in front of our eyes in our times, the borders and the helping hands are not appearing, the funds and allocations of necessary funds to the refugee camps, the direct food aid and agents of humanitarian actions are not sufficient. The reality of these missing steps should boggle our mind and should freeze our hearts out, as the news of burning convoys into Aleppo, lack of food into refugee camps in Adjumani in Uganda and the lacking rations of food in refugee camps in Tanzania. These should all be a reminder of the fate we have put our world in. The steps of lost grace and mercy on the weakest of humanity, where hospitals and humanitarians are put in the lines of bullets and grenades in between the battlefield as the soldiers fight for keeping merciless tyrants to stay in power.

While the superpowers are claiming the fight for justice, the innocent dies, the towns are battlefields and turns into dust, the graves are not cleared and the lives are lost in vain. This while UN cannot impose arms-embargoes or create a possible cease-fire to get civilians into safety, this while Italian and Greece authorities are working and trying to find ways to impose fleeing civilians on Turkey, because the rich European states fears that fleeing civilians could be terrorists. The humanity and just behaviour is dying while the states are flogging their responsibility to the ones in need.

We can question ourselves if this is right, if we can sleep knowing the indebtedness we have in riches. In the time of peace in our states, where we have possible houses and shelter for the ones fleeing possible genocides and acts against humanity; Europe impose stricter rules on immigration and Brexit proves the fear of Polish and other ethnic groups as they want to secure their borders as key argument to stop being an EU Member State.

We can wonder why the world has come to this that polarization of between ourselves the ones who see the innocent die and the ones who want to keep their own by any means. That the own nationals are going against each other and seeing it as only fit, instead of thinking for instance for a hot minute, what if the war came to our shores and to our homes, wouldn’t we flee? Wouldn’t we do what we could to leave our wealth, our riches to save our own?

Why shouldn’t the Syrians and all other who are in conflicts leave grenades, tanks and bombs, would we live on the streets with daily shooting and killing if we had an option to flee? Would we stay and risk everyday our lives to get a loaf of bread? I doubt that. We would travel to safety and to places where we could resettle and rehash the future of ourselves and our kids. If not we would be risking ourselves and the future of our kin. That is because it’s natural.

Still, the Europeans and citizens of fellow states don’t see it this way with fear-mongering politics and internal polarization of demagoguery, which is out of proportion. This will continue as these conflicts leads to more hurt and damage of lives, where more shelter and more merciless killings to stay in power, where more rigging of elections and more police-states are controlling the civil society. Where the states are more totalitarian and the power controlled by a little elite, while the average citizens are struggling, they will seek fortunes other places instead of in their birth-nations. Just as we would do if our destiny we’re in the limbo, if our homes were shacks and our sockets could electrocute us.

So the world of 2017, will be inflicted with the unfinished business of past, like all years has been, with as much uncertainty as the start of 2016, but with new issues and new struggles, with new people behind bars because of political affiliation, more families lost loved ones because of demonstrations, more people fleeing as the machetes and burning villages for land-grabbing, foreign investors taking land while locals cannot get deeds, as the central government are getting needed funds to supply the army with equipment and salaries, civil servants are left behind with reunification and it is happening so many places. Nobody confess nobody impose on it or even sanction this. We should question the economic challenges and the way they allocate funds, especially when many of these states get based government loans from the IMF and World Bank to basically could function; together with the reasonable taxation they can be able get from their citizens.

We shouldn’t silent on the merciless acts of men, we shouldn’t be ignorant of the world of oppression and fear, as the grand masters of our times are destroying and depleting lands for fortunes, as the multi-national companies see only profits and not see the populations they are forcing into unjust working conditions to trade resources into high profits abroad. These acts shouldn’t be forgotten, as industries and the trade are made for the international companies to gain and not all locals, therefore the polarization are created in these, create more havoc and even more injustice, as the unfair world we live in doesn’t give hands to ones in need. The rich can get it all, while the poor is lucky if they have enough for a jerry-can to buy water. That isn’t justice, that isn’t right when others are only drinking imported expensive French Water.         

We should questions the systems and revise them for more balanced between the rich and poor, for more functioning United Nations, for more diplomatic efforts and for stronger laws that cannot make Presidents into Emperors! The reality is that 2017 will start where 2016 and that is not in positive looks into the future, because the powers we have, the armies and police are targeting fellow citizens who deserves better. We all deserve better and we all should know better. Peace.

EU Statement on the situation in Kasese District (16.12.2016)

eu-kasese-16-12-2016

Opinion: If Guardiola is a tactical mastermind, he should manage with 3 substitutes!

pep-guardiola-manchester-city-press-conference_3739994

Now that the Manchester City Manager Pep Guardiola is having his first real test as a professional manager, he wants to revamp the system. So that it can with ease fit his protocol and tactical, mastermind of tactics are struggling with “only” having 3 substitutes in the Premier League. Since he doesn’t have Arjen Robben or Lionel Messi; he has Sergio Agüero and Kevin De Bruyne. Seems, like they are not up-to his level or his standard of football, he is not winning with ease as Guardiola did in Barcelona and Bayern Munich.

With History in Mind:

“On 21 August 1965 Charlton’s Keith Peacock ensured his place in football history by coming on as substitute for injured goalkeeper Mike Rose at Bolton. The Football League had decided to allow substitutes from the start of the 1965-66 season, although only to replace an injured player. There had been many calls for such a change over the previous decade and the issue achieved prominence after a series of FA Cup finals had seen teams depleted by injury, often with decisive influence on the result” (Bateman, 2016).

What Guardiola was saying:

“’It’s not just English football, it’s all around the world. We’re going to kill the players,’ Guardiola said” (…) “‘For that reason we have to have huge squads, more money for the clubs to spend. Just three substitutions right now… why can’t you make four, five or six? ‘That [would] mean all the players are involved more than they were before. The coaches can use different tactics, where you can change four or five players’. ‘It’s [then] a more open game, not always the same. Less injuries. Everything would be better. I think UEFA and FIFA have another opinion about that.’” (Gaughan, 2016).

So to be able to change a forward, midfield and defence isn’t enough as he has loaned away Joe Hart to Torino, not thought much of many of the other former big-players under Roberto Manchini, Guardiola are now wanting to revolutionize the Substitutions system in the Premier League. This is the same kind of whining we heard similar fashion when Jose Mourinho started his first period in Chelsea. That there we’re to many matches in the Christmas and around New Years, as the Premier League and cup matches happens nearly every 3 day with no Christmas break as in other European leagues.

So now Guardiola, the tactical genius, the mastermind of football cannot manage to change 3 out 11 players on the pitch, as he cannot see this fitting the time schedule with Champions League and other cups. That sounds weak, as Alex Ferguson managed well for a decade with that in Manchester United. He has not been proclaimed the FOOTBALL mastermind and the one who could make water into wine.

The new-wine is to be able to substitute half of the team as the strength of modern players are lacking, the ease of heavy training make them more fragile as their salaries has surged and the level of tattoo’s are more common than on seamen back-in-the-day. That Guardiola has to and wants to change half his team says more about his lacking consideration and wish to have bigger squads. Because if they can substitute 6 players, the bench shouldn’t be 7 players with 6 players eligible to play on the field and one keeper! Than the number of substitutes should be 12 players and 11 eligible players to play on the field. That means that the squad of a team would be 23 players not the 18 players that it’s now. That together with the maximum squads registered into UEFA Champions League and Football Association (FA) for Premier League. Something that will make the richest and powerful teams grab more of the talent and more of skilled players without needing farmer-clubs to keep the level of world-class professional players elsewhere.

Guardiola just want it easy and make the changes as he sees certain players without form or without character on the field playing Burnley instead of intelligence of how to use those three to change the game. This isn’t what I expected of Guardiola, I thought he would cope with the Premier League and not bitches like this. The Arrogance of wanting to revamp an old system because he has a hard time isn’t wisdom. It’s the easy fix out. Just like I felt with Mourinho when he was nagging on the amounts of matches in the Christmas and New Year’s period!

Man-up Guardiola! You who are supposed to be a mastermind, a tactician use the system and hit it hard. You have a club with fortunes to spend; you got workmates from Barcelona to help you out in the corners of Football Academy and the scouting after talent on the continent. You Guardiola have a grand opportunity to prove your skills.

I feel the same way to ranting Mourinho who said this in 2013:

“We go into the Christmas period and the accumulation of matches is so high, we don’t do it as a normal thing, we do it as a special group with a special mentality, enjoying the situation, forgetting we don’t have a Christmas break like the Spanish, Italian and German players. We don’t have that” (…) “But we have the pleasure of playing a period that’s only for the braves. I like that very, very much.” (…) “”I enjoyed it when I was in England before and I missed it when I was in Spain and Italy. Now I’m back I want to enjoy it, I want the players to enjoy it, and we need a special mentality to cope with that situation” (…) “Nine matches and one of them is the match against Steaua. That’s our motivation for tomorrow, to try to kill the situation in the group phase and give us a little bit of space in December; instead of having nine real, competitive matches, we only have eight” (HGH Magic – ‘Mourinho: Christmas fixtures only for the braves!’ (26.11.2013) link: http://www.chelsea.vitalfootball.co.uk/article.asp?a=538783#ixzz4SZILKQJi).

It’s time for Pep to cope with the Premier League, to play with the cards that are dealt and the cards on the table. He cannot think that his stature and his former accolades will give him way to fix the FA. Pep is not the first or last former successful manager trying himself in the Premier League. There aren’t many leagues with more substitutes over 3 + one extra if the goalkeeper is injured in the overtime. This is something that Pep should be able to fix it!

PEP, time to man-up eats the pupping-pop and figure out possible ways of using the players, the club and the league. Not complaining and wanting a revolution because you cannot handle the pressure. Time to think through your skill-set, talk with your fellow compatriots and club apparatus in Manchester City; they should help you and give you advice so you can manage 3 substitutes as it has been for decades. Peace.

Reference:

Bateman, Jason – ‘Fifty years of substitutions in football: from necessary novelties to tactical tools’ (18.09.2016) link: https://www.theguardian.com/football/when-saturday-comes-blog/2015/sep/18/fifty-years-substitutions-football-sport

Gaughan, Jack – ‘Manchester City boss Pep Guardiola urges football authorities to allow managers to use more than three subs’ (10.11.2016) Link:: http://www.dailymail.co.uk/sport/football/article-4018792/Manchester-City-boss-Pep-Guardiola-urges-football-authorities-allow-managers-use-three-subs.html#ixzz4SZ8BtdBN

European Countries accept to offer tax-exemptions that benefits Europe while stifling the rest, report claims!

cyprus-tax

“Considering the strong democratic traditions in Europe, and the fact that taxation is considered an issue of great importance to national sovereignty, it seems rather odd that the EU has taken such a negative approach to the inclusion of developing countries in the setting of global tax standards” (Eurodad, P: 33, 2016)

There are in this world, lots of greedy people and states that want to earn on their own benefit and get the little extra without the second party. That is why the European States do what they can to keep as much benefit of businesses inside their own dominion, even as the businesses are earning their profits in developing countries, this is happening with sophisticated business transactions, sweetheart-deals, letter-box companies and stashing profits into tax-havens.

The ones that doesn’t this tactic, this way of earning higher profits and getting better rates on the production; the reality is that European States has worked coherent to avoid their thieving of funds as the taxation deals and openings of the multi-national companies in Europe. So with these possibilities, there comes also the reasoning that the companies do what they can to stifle the European states in their own scheme to keep them. Certainly the countries getting a point on the dollar instead of multiple points on it; they could get a fair trade out of, but when they are tricking the businesses there, the businesses will do what they can to trick out of them too. The Businesses are not in the country out of love, they are there to earn profits and doesn’t’ care how as long as they get. So long the States are having the set-up to be used, they will use them and the citizens will wonder why the sophisticated businesses pay so little why earning fortunes, while the citizens are paying fairly high tax on the dollar.

Just take a look!

pspib-luxembourg-tax-plan-p1-normal

Letter box companies:

“The setting up of letterbox companies is one of the practices used by multinational corporations to avoid paying taxes in countries where their economic activity takes place” (…) “Looking at global investment flows, it is clear that several European countries are major centres providing attractive tax regimes for letterbox companies and thus functioning as conduits for multinationals’ investments. By comparing the statistics of foreign direct investments (FDI), Dutch organisation SOMO shows that the Netherlands is by far the largest exporter of FDI in the world, ahead of much bigger economies such as the United States and China” (Eurodad, P:17, 2016).

Sweetheart deals:

“In November 2014, the LuxLeaks revelations exposed the secret world of Advance Pricing Agreements (APAs) – also known as sweetheart deals – which benefited multinational corporations, in some cases with tax rates lower than 1 per cent.89” (…) “Public insight into these kinds of deals is very rare indeed, since they are kept highly confidential. In fact, the LuxLeaks revelations were followed by legal charges against the two whistleblowers, as well as one of the key journalists, who brought the story to the public. The case is still ongoing in Luxembourg (see ‘Lack of whistleblower protection’)” (…) “Other examples of problematic APAs have been highlighted by the European Commission’s state aid cases. For example, APAs played a central role in the tax arrangements between Luxembourg and Fiat, the Netherlands and Starbucks, and Apple and Ireland. In these cases, the European Commission found the tax advantages given to the multinational corporations, through APAs, to be a violation of the EU’s State Aid rules” (Eurodad, P: 19, 2016).

Tax Treaties:

“Another key concern related to tax treaties is that they often include provisions to lower – or remove – withholding taxes on cross-boundary financial flows, and thus can lead to lower tax income in the countries signing on to such treaties, including developing countries. For example, research by ActionAid shows that a tax treaty between Uganda and the Netherlands, signed in 2004, completely takes away Uganda’s right to tax certain earnings paid to owners of Ugandan companies if the owners are resident in the Netherlands” (…) “The underlying problem in the international tax system today is that multinational companies are treated as a collection of ‘separate entities’ even though in reality they function as unified firms, with subsidiaries under the central control of the parent company. In today’s system, subsidiaries of the same company are expected to trade with each other ‘at arm’s length’, as if they did not have any connection to each other” (Eurodad, P: 21-24, 2016).

ubs-secrecy

Bank Secrecy:

“In order to deal with the tax evasion and avoidance risks related to banking secrecy, some developed countries, such as the EU Member States, have agreed to start exchanging information on financial accounts automatically amongst each other” (…) “This means that, for example, the Belgian tax authorities will, automatically and on a periodic basis, receive information on any bank accounts or assets held by Belgians in other EU Member States. The aim of this automatic information exchange is to improve the efficiency of tax collection and prevent taxpayers from hiding capital or assets abroad” (Eurodad, P: 27, 2016).

Interesting findings from European Countries:

“The Austrian government is against full public country by country reporting, and even the European Commission’s proposal for partially public country by country reporting” (Eurodad, P: 41, 2016).

“Belgium generally has a relatively high number of tax treaties with developing countries, but the average reduction in developing country tax rates through these treaties is low. However, that the average does not show is that several of Belgium’s tax treaties with developing countries are ‘very restrictive’. There are also clear indications that Belgium’s tax treaties have significant negative impacts on the developing countries that sign them. A conservative estimate puts the fiscal cost to 28 developing countries at €35 million in 2012”(Eurodad, P: 41 , 2016). “The Belgian tax treaty system is also an issue of concern. A conservative estimate suggests that 28 developing countries lost €35 million in 2012 due to tax treaties with Belgium” (Eurodad, P: 57, 2016).

“The position of the Czech government on the issue of ownership transparency is ambiguous. On the one hand, the new Czech law is very restrictive in terms of access to information in the Czech beneficial ownership register (in fact, it seems that the definition of the “legitimate interest” is so narrow that in practice it will be inaccessible for the public, no matter if they have a legitimate interest or not)” (Eurodad, P: 42, 2016).

The Danish government does not support full public country by country reporting. Instead, Denmark supports the proposal from the European Commission, which would only allow the public to get a partial picture of the activities and tax payments of multinational corporations” (Eurodad, P: 42 , 2016).

“Although the French tax treaties with developing countries on average reduce the tax rates less than most other countries covered in this report, France has eight ‘very restrictive’ tax treaties with developing countries. In total, France also has the highest number of treaties with developing countries among all countries covered by this report” (Eurodad, P: 43, 2016).

The German government has previously worked very actively against the adoption of full public country by country reporting at EU level. Germany remains very sceptical, even towards the proposal from the European Commission, which would only introduce partially public country by country reporting” (…) “Germany’s tax treaties with developing countries are a cause of concern due to the high number of very restrictive treaties. Also of concern is the fact that Germany’s total number of treaties with developing countries is significantly above average” (Eurodad, P: 44, 2016).

apple-double-irish-ec-opto

“Of all the countries covered by this report, the Irish tax treaties with developing countries introduce the highest average reductions on the tax rates of their developing country treaty partners. Among the Irish tax treaties with developing countries are three ’very restrictive’ treaties” (Eurodad, P: 44, 2016).

“Although the Italian tax treaties with developing countries on average reduce the tax rates less than most other countries covered in this report, Italy and the UK are the countries that have the highest number of ’very restrictive’ tax treaties with developing countries” (Eurodad, P: 45, 2016). “An Italian investigation is also ongoing into Credit Suisse Ag. The Switzerland-based group’s parent company is charged with systematically having helped 13,000 Italian clients to hide their assets of more than €14 billion abroad” (Eurodad, P: 73, 2016).

“According to the Financial Secrecy Index, Luxembourg has the highest level of financial secrecy of all the countries covered by this report (and ranks at number 6 at the global level). The government’s position on the issue of public registers of beneficial owners is unclear” (Eurodad, P: 46, 2016). “In spite of the LuxLeaks scandal, Luxembourg has continued to issue a very high number of advance pricing agreements (or ‘sweetheart deals’) to multinational corporations – with a 50 per cent increase during the year following the scandal. This, as well as the fact that Luxembourg generally has a significant amount of indicators of aggressive tax planning, is highly concerning. Also, on the issue of financial secrecy, Luxembourg remains a high concern – currently placed as number 6 at the list of the world’s most secretive countries” (Eurodad, P: 79, 2016).

“Netherlands currently has some extremely restrictive tax treaties with developing countries, which make it difficult for those developing countries to collect taxes. Netherlands generally also has more tax treaties with developing countries, and is more aggressive in negotiating the lowering of tax rates in developing countries, than the average among the countries covered in this report. In addition, the government does not levy withholding taxes on outgoing payments to tax havens, which would be an effective anti-abuse measure that would not require lengthy treaty renegotiations” (Eurodad, P: 46, 2016). “Leaked EU documents show that the Netherlands is attempting to undermine EU plans to tackle harmful tax practices by introducing a minimum tax rate of 10 per cent for royalties and interest payments. They reveal that the Netherlands has proposed exceptions in the plans for its patent box provision, which can reduce taxation on revenues resulting from research and development to 5 per cent. This provision, which is a key component of the Dutch tax system, would be threatened by a 10 per cent minimum rate” (Eurodad, P: 82, 2016).

bermuda-norway

“Norway has a high number of ‘very restrictive’ tax treaties with developing countries” (Eurodad, P: 47, 2016). “Norway’s tax treaty with Benin completely prevents Benin from taxing royalty payments to Norway. This is problematic since multinational corporations can use royalty payments between subsidiaries to minimize their profits and thereby avoid taxes in the countries where they have business activities” (…) “Norway does not have a patent box. It does however have a very favourable tax regime for shipping companies, albeit in line with EU countries’ legislation. Shipping income is tax-exempt and qualifying companies instead pay a small tax based on the tonnage of its vessels” (Eurodad, P: 84, 2016).

“Poland has a significant number of ‘very restrictive’ tax treaties with developing countries” (Eurodad, P: 47, 2016).

“Spain has on average been the second most aggressive negotiator when it comes to lowering developing country tax rates through tax treaties. Spain also has a relatively high number of tax treaties with developing countries, which gives even more reason for concern” (Eurodad, P: 48, 2016). “Wealthy Spanish people have doubled their money stashed in Luxembourg (more than €13 billion) – afraid of uncertainty and looking for lower tax rates” (…) “Inside Spain, the Canary Islands (located close to the African Atlantic coast) have a special economic and tax regime that make them “one of the most profitable tax regimes in Europe”, according to PwC. A tax rate of 4 per cent for companies located there is one of the several tax benefits. Special incentives also are applied in Ceuta and Melill” (Eurodad, P: 90-91, 2016).

“Sweden has four ‘very restrictive’ tax treaties with developing countries” (Eurodad, P: 49, 2016).

“Together with Italy, the UK has the highest number of ‘very restrictive’ tax treaties with developing countries. On average, the UK’s tax treaties with developing countries contain relatively high reductions in developing country tax rates. The fact that the UK at the same time has the second highest number of treaties with developing countries gives even more reason for concern” (Eurodad, P: 49, 2016).

If this isn’t eye-opening, than I don’t know, but it shows the systematic state of easy taxation to benefit big-business, the multi-national companies, so they can set-up show and get grander profits, while the states works the perks between them to settle score. The negotiations and the tax-havens gives more space for the companies to fuel money out of Europe and of the Developing Countries, which hurts all sort of government operations as the end-game is that the government doesn’t get the supposed tax-base as that flee to offshore or overseas where the taxations is lax or non-compliance with the place the business actually operates. We all should get our MPs, Senators, MEPs, Governors and all other Elected Representatives, to take action against this sophisticated thieving from the Multi-National Companies and the Representatives who opens the gates for this activity. Peace.

Reference:

EURODAD – ‘Survival of the Richest – Europe’s role in supporting an unjust global tax system 2016’ (15.11.2016).

Brexit: Davis Davis proposition today not such an exit after all; pre-Brexit has proven implications for Central Bank of Ireland and Ofcom!

yes-prime-minister-clip

I am sure today that Yes Minister is fitting as the quotes in Parliament and the previous uttering words of Boris Johnson about free-movement that counter all the work of the Brexiteers during campaigning for the cause. The work that we’re to pretend that the separation from the continent would be peaceful and jolly; but the Brexiteers didn’t know and the Tories still doesn’t know.

Therefore I begin with this a re-cap of TV in 1981:

“Sir Humphrey Appleby: Well, Minister, I’m afraid that is the penalty we have to pay for trying to pretend that we’re Europeans. Believe me, I fully understand your hostility to Europe.

James Hacker: I’m not like you, Humphrey. I’m pro-Europe, I’m just anti-Brussels. I sometimes think you’re anti-Europe and pro-Brussels” (Yes Minister – ‘The Devil You Know (#2.5)” (1981).

davis-davis

Today the Brexit-Minister Hon. Davis Davis uttered these wonderful words in Parliament:

“The simple answer we have given to this before is, and it’s very important because there is a distinction between picking off an individual policy and setting out a major criteria, and the major criteria here is that we get the best possible access for goods and services to the European market. If that is included in what you are talking about then of course we would consider it.” (Watts, 2016).

So the ones leaving is now changing terms, they want to set standards that opens the market. While still being outside the Union, so the Brexiteers wants now to get the full benefit while being outside. This doesn’t fit with the hazardous statements from Martin Schulz and Jean-Claude Juncker who has said their peace about an easy transition!

Certainly the European Union wants to make an example of the United Kingdom and their markets; they have to pay dearly to be part of it, while wanting to secure their borders and movement. Now, the Davis Davis wants its simplified.

bank-of-ireland

Irish Central Bank sees this already:

“He said the Central Bank’s workforce planning for next year reflects the additional resource needed to deal with applications and contingency has been built in as it is expected that the financial sector will grow materially” (…) “Mr Roux told reporters after the Dublin event today that the Central Bank was seeing applications for new business and the licensing of firms who are not present here” (…) “He also said it was seeing very significant indications from “regulated firms that are small today but want to be big tomorrow” (…) “We see the whole gamut of firms enquiring for establishing or growing in Ireland, it is MIFID (markets in financial instruments directive) firms, insurance companies, CSDs (central securities depositories) and payments institutions,” he added” (Rte, 2016).

So when businesses are looking towards Dublin, which is in EU and already part of the European Single Market; the London based firms might move to Dublin to secure their profit-lines and such. Even the Central Bank of Ireland is seeing this. This must really hurt the Brexiteers who fought well, but didn’t think of the implications. Davis Davis sees this now and wants to be able to go out of being EU Member State, but still being part of EU Single Market.

That is really the Norwegian EFTA model, but they will have hard time and pay lots of funds to get what they have now and would also betray the democratic values of majority vote that wanted a true separation, which this isn’t. Then the Tories will do the same trick as the Norwegian Government did to their public, when they signed the EFTA and made agreements to join the EU Single Market, but not having the EU Member State privileges. Something the United Kingdom is losing with triggering the Article 50 of the Lisbon Treaty.

This is so special and so weird. That Hon. Davis Davis are acting and flip-flopping like this. Surely the warning from Ofcom must say something as well:

mou-scotland-ofcom

“Chief executive Sharon White said that the industries her organisation oversees are “inextricably European” and could be badly hit if they are not taken into consideration when arranging the UK’s exit for the EU” (…) “Making Brexit a success matters for communications – because these services are fundamental to our lives,” she told the Institute for Government in London” (…) “She said: “The country of origin rule is a good example of an EU law that benefits member states and supports broadcasters – providing a mass audience, and promoting cultural exchange by transcending borders” (…) “But keeping this principle after Brexit will demand constructive discussions with European neighbours. Country of origin cannot endure merely by virtue of existing in UK law.” (Sky News, 2016).

So with this the broadcasters like Ofcom and Central Bank of Ireland sees the implications of the Brexit with their bare eyes. The indications are not put in light of joy and positive future, as the Irish might get more business, this means that corporations moving to Dublin instead London, because of the safety of EU Single Market that the Hon. Davis Davis wish to keep and pay Brussels, but if the EU will accept it is mere speculation.

The Tories government has decides as the Prime Minister Theresa May has to make decisions that makes the Brexit successful. But early November 2016 a leaked memo showed that the government hadn’t done due diligence or check and balance for the industries. Which is evident with the corporations planning to move and Ofcom are sceptic to the Brexit itself.

Therefore the reactions to the Brexit will continue to come for businesses and for the Parliament; the House of Commons would surely be a bit shocked by the proposition from the Brexit Minister. We all are, not like Irish paying for Welsh roads, but still spectacular thinking about how the Brexit Campaign celebrated the idea of total freedom from EU. Now they want the perks, as long as the EU accepts the fixed payments for the entry to the Single Market. Peace.

Reference:

Rte – ‘Central Bank not seeking to dissuade UK financial firms from moving to Ireland – Roux’ (01.12.2016) link: http://www.rte.ie/news/business/2016/1201/835805-central-bank-says-not-dissuading-brexit-moves/

Sky News – ‘Ofcom boss warns of Brexit impact on UK communications sector’ (01.12.2016) link: http://news.sky.com/story/ofcom-boss-warns-of-brexit-impact-on-uk-communications-sector-10679371

Watts, Joe – ‘Brexit: David Davis says UK Government could pay money to EU for single market access’ (01.12.2016) link: http://www.independent.co.uk/news/uk/politics/brexit-single-market-access-david-davis-eu-money-uk-a7449416.html

Bank of England Statement on Polymer Banknotes (30.11.2016)

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Welsh politician: ‘Could Ireland use EU funds to pay for our motorway improvements?’ (Youtube-Clip)

“Ukip has asked the Welsh government to seek EU funding from the Irish government to help upgrade a motorway between London and south Wales. The M4 motorway is the main artery between the main cities of Wales and the rest of the UK – but it also carries a large amount of Irish goods exported and sold there. Ukip assembly member David Rowlands made the appeal to the Welsh National Assembly this afternoon. He says that Irish exporters also rely on the M4 to transport goods to other EU countries on the continent – and told TheJournal.ie that it is “quite a reasonable idea to explore”: http://jrnl.ie/3109404” (TheJournal.ie, 2016)

Britain won’t turn its back on Africa following Brexit (29.11.2016)

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There is clearly a need in the aftermath of Brexit for there to be a degree of reassurance given to Africa that Brexit doesn’t mean that the United Kingdom is going to turn its back on Africa.

ADDIS ABABA, Ethiopia, November 29, 2016 -Brexit does not mean that the British government will turn its back on Africa, Lord Paul Boateng, a Member of the United Kingdom’s House of Lords said Monday.

Speaking at the first ever Africa Trade Forum which is being hosted by the Economic Commission for Africa and the African Union, Mr. Boateng said Brexit presents Africa and the UK with an opportunity to “put development at the heart of our trading relationship with Africa in a way frankly that it has not always been in relation to the EPAs, let’s be frank about it”.

“The UK recognizes that and we will seek every opportunity to minimize the disruption in our trading relationship and take every opportunity to seize this chance to re-fashion the relationship between the UK and Africa in terms of trade so intra-African trade becomes an opportunity which we can seize together,” he said.

Contributing to debate on Africa-E.U. Economic and Trade Cooperation and Brexit implications for Africa, Mr. Boateng assured participants, including African Ministers of Trade, Finance and Transportation as well as senior government officials, heads of Regional Economic Communities (RECs), African CEOs and executives, representatives of international development agencies, civil society and others, that trade relations between the UK and Africa will not be affected following Brexit.

“There is clearly a need in the aftermath of Brexit for there to be a degree of reassurance given to Africa that Brexit doesn’t mean that the United Kingdom is going to turn its back on Africa and I’m able to assure you that right across the political divide in the UK, in both Houses, Africa and the UK’s historic link with Africa remains central to our thinking,” he said.

“Yes there’s uncertainty at this time, that is inevitable, when such a momentous decision is made,” SAID Mr. Boateng.

“Yes there is a hazard always when you think about the scale of the task that lies ahead in terms of mapping out the future of the trading relationship between the UK and Africa but I think I can give the absolute assurance that we see this in the UK as an opportunity to be seized.”

He said he was concerned by the issue of infrastructure in most African countries. Mr. Boateng was born and brought up in the Gold Coast in Ghana.

“I am the grandson of cocoa and cassava farmers. My grandmother grew cassava, my grandfather grew cocoa and when I look at our village in Tafo in the eastern region of Ghana, two things strike me, first of all, that in the 1950s there was a direct rail link between Tafo, a heart of cocoa growing region and Takoradi, which at that time was our main port,” he told participants.

“That rail link no longer exists and that has had a damaging effect on agriculture in Ghana but Ghana is not alone in seeing the deterioration of its infrastructure so the United Kingdom recognizes the importance of infrastructure in terms of promoting intra-African trade.”

“The second matter which I can’t but help notice, he said, is that right next door to my grandmother’s farm was a West African Cocoa Research Institute and that was a major resource for West Africa in terms of agricultural support and extension and research at the highest level so it produced every year a handful of PhDs now sadly due to decades of neglect and the impact of the structural adjustment of the 70s and the 80s, that emphasis on higher education and the link between higher education, science, technology and innovation and agriculture simply went now we are seeking to revisit that but I would argue that that too is a very important part of our struggle in order to increase agricultural productivity of Africa.” 

“Without that we are going to be in difficulties but the good news is it seems to me that is changing and the UK and our department of international development is making its contribution to that,” Mr. Boateng said.

Participants will be in Addis Ababa for the week attending the first ever Africa Trade Week, a multi-stakeholder platform for the advancement of the Continental Free Trade Area (CFTA). And intra-African Trade.