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

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

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

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

DRC made net profit from deal, Fleurette a net loss

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

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

Global Witness mistakes

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

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

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

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

Questions for Global Witness

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

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

-Ends-

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Media enquiries

Powerscourt

+44(0)20 7250 1446

fleurette@powerscourt-group.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Peace.

Reference:

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

Misappropriate funds instead of feeding the hungry in the districts; 10th Parliament greedy MPs only see their bellies and not that they represent the ones that are starving!

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Something is just wrong, something is seriously wrong, as the misappropriated funds and public coffers in Uganda; there is something sinister going on. It is okay that a government and administration cannot make it rain or make sun shine, but they can make sure the people together with public gathering technics make sure when there is plenty of water. It’s in tanks and other barrels until needed for the crops and enough for drinking. This is practices mankind has done since the Roman Empire. It’s not spectacular, but convenient.

On the other hand, since Roman Time, there has always been corruption, and men has always been corrupted by gold, silver and sparkly things. So as the citizens are hungry, the starvation isn’t only in Isingiro, where the starvation is dangerously high, there are other districts severely hit by the draught and the lack of rain.

Hunger in the districts:

Already, 1.3 million Ugandans, the minister said, need urgent food aid and so far, 600kgs of maize flour and 300 kilogrames of beans have been sent to Isingiro Districts where some people have starved to death” (…) “According to Mr Kibazanga, 65 per cent of people in Karamoja sub region have one meal or half a meal in a day as opposed to three meals while 35 per cent of the population in the districts of Katakwi, Amuria, Kumi, Bukedea, parts of Serere and Kaberamaido are in the same phase with Karamoja sub-region” (…) “Mr Kibazanga also revealed that 50 per cent of the people of Koboko, Yumbe, Moyo, Maracha, Arua, Zombo, Nebbi, Adjumani, Amuru, Nyoya, Gulu, Pader, Lamwo, Kitgum, Agago, Soroti, Ngora, Amolatar, Pallisa, Butaleja, Rakai, Isingiro and Tororo have access to a meal a day. The districts of Oyam, Apac, Kiryandongo, Masindi, Bulisa, Kyankwanzi, Nakaseke, Kiboga, Mubende, Luwero, Kyegegwa, Sembabule, Kiruhura, Lwengo, Ntugamo, Kamuli and Kibuuku are in a minimal phase of food insecurity, meaning the people can still afford all meals though stocks are running low” (Tajuba, 2016).

So when the Government knows about that and they continue with their inappropriate idea of giving new cars for the Members of Parliament, something that the 10th Parliament MPs have been waiting for. It is in their duty and now getting a free-ride for their services; this they do while districts upon districts lack food and water, while they are starving… the reckless thieving of state coffers instead of supplying needed food from the budgets !

april-cars Uganda

New Cars for the MPs:

“Parliament has received a release of Shs25 billion for payment of vehicle grant to members of parliament. The money will cater for at least 250 MPs out of 431. According to parliament’s director of communcations Chris Obore, the Parliamentary Commission will first pay new MPs. The new MPs to get first are those without election petitions in court. The old MPs will be paid when the Commission gets a new release. It emerged recently that each Member of Parliament will bag Shs200m instead of Shs150m as had earlier been budgeted by the Parliamentary Commission. This means Parliament will spend more than Shs85 billion on all the legislators” (the Insider, 2016).

As much as there are money in the system for unnecessary expenditure from the 10th Parliament, that with no thought or consideration thinks about the consequences for the once they are supposed to represent. They apparently wish to become greedy like the former EX-MPs who we’re taken to court and charged with massive thieving, though where the money really went nobody knows. They surely pocketed some of it, but the where it we’re supposed to go, is not hard to know. Because the pay-outs we’re to ghosts, ghosts are invisible creatures not of the living.

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Pension Scam:

“Anti Corruption Court in Kampala has found three former top employees of ministry of public service including Jimmy Lwamafa, the ex-permanent secretary guilty of all the ten charges slapped against them by the state.  Presiding judge, Lawrence Gidudu summarised in his ruling that the fraud to steal the Shs88.2 billion was hatched in the public service, smoothened in finance ministry and executed in Cairo bank where the money was finally paid out to ghost pensioners” (Ndagire & Wesaka, 2016).

So the living in the districts are either this days getting screwed by their own representatives of the 10th Parliament, as they are more keen on perks and riches than helping the citizens they represent, that is what their President Museveni has been teaching for three decades now. So the people are starving and not getting valuable food or needed water for their daily life, while the MPs are riding in flash, posh cars in Kampala. That is happening while their predecessors are being detained for thieving from coffers to bail-out ghost pensioners, while the results of the matter are not told where the money went.

We can wonder since it is not told, that somebody did their bidding and stole the monies for the bigger plan of their President, and when they we’re not needed to do their service they gotten taken to court. That wouldn’t be surprising as that has happen before in the times udner the Executive Museveni. It’s just new names who done similar things in the past. The billions of shillings are levels of stealing while the hunger is running rapid is worrying; together with the wishes of lavish lifestyle by the men who supposed to represent them. Instead they represent themselves and not using their powers and reach to service the famine ridden districts, because they only see their own tummy. Peace.

Reference:

Ndagire, Betty & Wesaka, Anthony – ‘Court finds Lwamafa, Obey, Kunsa guilty of fraud’ (11.09.2016) link: http://www.monitor.co.ug/News/National/Court-Lwamafa-Obey-pension-scam-Kunsa-guilty-fraud/688334-3448762-n2qb3oz/index.html

The Insider – ‘NEWS MPs receive Shs25 billion for cars’ (08.11.2016) link: http://www.theinsider.ug/mps-receive-shs25-billion-for-cars/#.WCindPnhDIU

Tajuba, Paul – ‘Millions of Ugandans in 45 districts starving, says govt’ (04.11.2016) link: http://www.monitor.co.ug/News/National/Millions-of-Ugandans-in-45-districts-starving–says-govt/688334-3440478-8uj0buz/index.html

PepsiCo CEO Indra Nooyi Statement on Trump Victory (10.11.2016)

pepsico-statement-on-trump

FYI: President Trump will create a Banana Republic out of the US!

trump-land

Well, ladies and gentleman the super-power called the United States of America, is a dying dinosaur that Michael Moore or even Jay-Z doesn’t have the power to change. Today was a shock for many, even for me as the American Electorate decided to elect a Demagogue of ill-rhetoric towards certain ethnic groups like the Latin-American, Women and so-on. Donald Trump in his power and commander-in-chief will remarkably create havoc.

All of this is well known, but what the United States’ citizens didn’t think about when they voted against the establishment on protest against the D.C. power-structure they voted for a man with certain traits that can put certain pieces of the Government into shambles. So before I start; for those of you who don’t know, here is the definition of a banana republic!

“It was coined in a 1904 book of fiction by O. Henry, an American writer. Henry (whose real name was William Sydney Porter) was on the run from Texan authorities, who had charged him with embezzlement” (…) “His phrase neatly conjures up the image of a tropical, agrarian country. But its real meaning is sharper: it refers to the fruit companies from the United States that came to exert extraordinary influence over the politics of Honduras and its neighbours. By the end of the 19th century, Americans had grown sick of trying to grow fruit in their own chilly country. It was sweeter and cheaper by far to import it instead from the warmer climes of Central America, where bananas and other fruit grow quickly. Giants such as the United Fruit Company—an ancestor of Chiquita—moved in and built roads, ports and railways in return for land. In 1911 the Cuyamel Fruit Company, another American firm (which was later bought by United), supplied the weapons for a coup against the government of Honduras, and prospered under the newly installed president. In 1954 America’s Central Intelligence Agency (CIA) backed a coup against the government of Guatemala, which had threatened the interests of United. (Historians still debate whether the CIA’s motive was to protect United or, as many now believe, to nip Communism in the bud.) Hence the real meaning of a “banana republic”: a country in which foreign enterprises push the government around” (The Economist, 2013).

Why do I believe this, it’s because of all his sort-of promises over the months. There is all kind of activities that proves the clear indications of a Banana Republic on the rise. The Americans might think otherwise, that is because there are blind on how the state really is.

The United States recorded a Government Debt to GDP of 104.17 percent of the country’s Gross Domestic Product in 2015. Government Debt to GDP in the United States averaged 61.94 percent from 1940 until 2015, reaching an all time high of 121.70 percent in 1946 and a record low of 31.70 percent in 1974. Government Debt to GDP in the United States is reported by the U.S. Bureau of Public Debt” (Trading Economics).

So the average debt level or ratio is staggering already. This is not tackled because the creditors accept the debt levels are raising, just as seen with the numbers from Trading Economics are showing during 30 years the percentage has gone up over 70 %, which should be frightening to any economy. When you have that level of debt, you should be able to have a heavy tax-base to collect and pay the debt.

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Taxing under Trump:

“US taxes are low relative to those in other developed countries. In 2012, US taxes at all levels of government represented 24 percent of GDP, compared with an average of 34 percent of GDP for the 34 member countries of the Organisation for Economic Co-operation and Development (OECD)” (…) “The United States collects relatively less revenue dedicated to retirement, disability, and other social security programs—22 percent of total tax revenue—than the 26 percent OECD average” (…) “Property taxes provided more than twice as large a share of US tax revenue—12 percent in 2012—than the OECD average of 5 percent. Almost all revenue from taxes on property in the United States is collected by state and local governments” (…) “The United States relies less on taxes on goods and services (including both general consumption taxes and taxes on specific goods and services) than any other OECD country, collecting 18 percent of tax revenue this way compared with 33 percent for the OECD. The value-added tax (VAT)—a type of general consumption tax collected in stages—is the main source of consumption tax revenue, employed worldwide in 160 countries including all 34 OECD member countries except the United States. Most consumption tax revenue in the United States is collected by state and local governments” (Hoo & Toder, 2006).

So when the Federal and Republic itself has such a giant debt ratio, the taxes should be high and should be to the levels of actually having the ability to pay it back. As they do not even have VAT on goods that is very normal world-wide, but apparently isn’t a thing in the United States. This proves the mismanagement of potential tax-base that the Government need to succeed to pay their debt. This is before the Election yesterday.

This is the taxes planned under Trump: “According to the Tax Foundation’s Taxes and Growth Model, the plan would reduce federal revenue by between $4.4 trillion and $5.9 trillion on a static basis. The amount depends on the nature of a key business policy provision” (…) “After accounting for the larger economy and the broader tax base, the plan would reduce revenues by between $2.6 trillion and $3.9 trillion after accounting for the larger economy, depending on the nature of a key policy provision” (…) “On a static basis, the Trump tax plan would increase the after-tax incomes of taxpayers in every income group. The bottom 80 percent of taxpayers (those in the bottom four quintiles) would see an increase in after-tax income between 0.8 percent and 1.9 percent, under both policy assumptions.  Taxpayers in the top quintile would see a 4.4 percent increase in after-tax income under the higher-rate assumption, or 8.7 percent under the lower-rate assumption. Those in the top decile would see a 5.4 percent increase in after-tax income under the higher-rate assumption, or 9.3 percent under the lower-rate assumption. Finally, taxpayers in the top 1 percent would see the largest increase in after-tax income on a static basis, driven by both the lower top marginal tax rate and the lower corporate income tax. Under the higher-rate assumption this increase would be 10.2 percent, and under the lower-rate assumption this increase would be 16.0 percent” (Cole, 2016).

So when the government are axing it income, while the economy running on a deficit your making no-sense. Your continue to spend on deficit while cutting taxes; the taxed ones are the ones who voted for Trump, the bottom 80% will get higher taxes, while corporations and 1% riches will get less. So the richer will get richer. A real proof of a Banana Republic where the solidarity towards the ones who needs so. They who voted for him is the ones that will pay on his tax-plan, which is ironic.

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This is on the direct economic sense, now on health care. Here he proves again he will hurt the ones who voted for him, the poor and what is left of the working-class:

“The policies would cause almost 21 million people to lose their insurance coverage, as the replacement health care policies would only cover 5 percent of the 22 million individuals who would lose coverage upon the repeal of Obamacare. This would almost double the number of Americans without health insurance” (…) “The largest component of this estimate comes from the “repeal.” The campaign website proposes to “completely repeal Obamacare,” which we assume to mean repealing the Affordable Care Act’s regulations, subsidies, Medicaid expansion, Medicare savings, and tax increases. Although repealing the coverage provisions would save about $1.1 trillion, based on Congressional Budget Office (CBO) estimates (adjusted for recent legislation and changes in the budget window), repealing the legislation’s tax increases and Medicare cuts would cost a combined $1.6 trillion. In total, this means repeal would cost $480 billion – or $260 billion including the economic benefits of repeal” (Committee for a responsible Federal Budget, 2016).

So the Trump Administration are planning to hurt their own, the ones that has gotten through the Obamacare gotten some sorts of subsidized medical insurance, something he wants to repeal and will even make sure to cost the state more. So the educated minds will know that people has to carry insurance on their own while the state pays more to abolish the Obamacare. The 21 million individuals will regret questioning the medical treatment through Obamacare, as the Federal State will add more money. So the people are getting higher tax for the same 80% who losing their health insurance. Do the American citizens prefer punishing themselves?

As with the true implications of NAFTA:

“Customs duties reductions led to increases in trade with the other two countries of 11% in Canada, 41% in the United States, and 118% in Mexico, for the period between 1993 and 2011.5 In terms of value, American trade with Canada and Mexico increased from US$481 billion in 1993 to US$1.1 trillion in 2015. While Donald Trump claims that Americans “don’t make anything anymore,” implying that NAFTA is to blame, the American manufacturing sector has increased production by 58% since the deal came into effect” (Bedard, 2016).

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So the results of NAFTA are apparently different in reality than what comes across when coming to Trump, so the reality hasn’t mattered. He wants to dissolve or change the rules and regulations, this will make it harder to export and import products between Canada and Mexico into the United States. The United States need free-movement of products and industrial products to be able to have the Corporate Capitalism that drives the USA.

So with lower taxes in general, a higher cost of health-care without concern for the 21 million without health insurance. They now are getting more problems with exporting and importing the needed products and raw-material has been possible and even at longest part of the NAFTA agreement has been positive to the US. So the regulation and cooperation with neighbours will be harder because of barriers that will be created with abolishing the NAFTA.

This is still all economic implications… then you have the gun-control, the war-lord aspects and the other social policies mixed with the economic aspect that turns the ones giant and great nation into tatters, if the President Donald Trump gets to do as he pleases without questions.

We should consider it with the implication on the policies and the foreign affairs. The US Government would lose with their plans on playing hardball with NATO and others. With the Muslims ban and deportation, also the Latin-American population that has been singled out; these groups can hurt the economy and also the basic workforce who does the needed services needed in society. That these will be sent out because of their ethnicity and faith will also prove that the United States isn’t the leaders of free-world, but another tyranny under President Trump. The fear and loathing of the Republican President Trump! That will do like the Americans did during Second World-War when Japanese for being so we’re detained into camps, or if he pleases send them packing.

This racial laws and deportations will hurt the economy and make sure the state becomes a Banana Republic; What is special is that the United States will have a free-flow of guns, ammunition, but will make it harder to import goods and also export goods with worse deals, have lesser taxes, still high debt yield and add expenses on health-care while the citizens has to cover themselves. This while the US President hasn’t a plan to help lower-classes as the minimum-pay or salaries increase for the 80% who still get added tax, also pay more for health care. The US Electorate got all reasons for feeling foolish if they even read this.

Bananas and Banana Company we’re President William Howard Taft did what he could to save the companies. Now the new President might try to replicate this, but he forgets the needed international community and production as the needed bolts, tools and manufacturing are inter-connected. That is something that the modern day President Trump needs.

Side Note – International Partnerships:     

So if he builds walls, gets into whiny bitch mode and becomes a fully-blown attack paranoid mode, than the international partners will not accept being constantly bullied. I am sure that Philippines C-I-C President Rodigro Duterte will be tossed around for another power or human being. Neither will Russian President Vladimir Putin and even German Chancellor Angela Merkel will not accept it. So the price of him being brash and irresponsible thin-skinned versus the ones that questions his actions or words, isn’t really suitable with the trading partners and allies that the U.S. still needs. The US doesn’t live in a vacuum and not the only one with a giant defence and has much money to spend like on AGOA and others.

So congratulation on becoming a Banana-Republic, ready to become muffled with after playing king-pin… for decades; as your economic prospects under the Trump Administration and regime doesn’t look healthy. Peace.

Reference:

Bedard, Mathieu – ‘NAFTA: DONALD TRUMP’S CRITICISMS ARE UNFOUNDED’ (07.2016) link: http://www.iedm.org/files/lepoint1016_en.pdf

Committee for a responsible Federal Budget – ‘Analysis of Donald Trump’s Health Care Plan’ (09.05.2016) link: http://crfb.org/blogs/analysis-donald-trumps-health-care-plan

Cole, Alan – ‘Details and Analysis of the Donald Trump Tax Reform Plan, September 2016’ (19.09.2016) link: http://taxfoundation.org/article/details-and-analysis-donald-trump-tax-reform-plan-september-2016

Hoo, Sonya & Toder, Eric – ‘The U.S. Tax Burden Is Low Relative to Other OECD Countries’ (08.05. 2006) link: http://www.taxpolicycenter.org/publications/us-tax-burden-low-relative-other-oecd-countries

The Economist – ‘Where did banana republics get their name?’ (21.11.2013) link: http://www.economist.com/blogs/economist-explains/2013/11/economist-explains-16

Trading Economics – ‘United States Government Debt to GDP  1940-2016 | Data | Chart | Calendar’ link: http://www.tradingeconomics.com/united-states/government-debt-to-gdp

Dakota Access Statement on the U.S. Army Corps of Engineers (08.11.2016)

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Opinion: Inaction on the White Collar Crimes is killing our Governments…

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I’m tired; I am so tired of these suits getting away with felonies while the Chicken thieves are starving worldwide. The chicken thief does deserve punishment for stealing the neighbour’s chicken; while tailing it by the sidewalk before the Police Officer picked him-up and threw him into the Police car before stalling him in the cell at the Police Station. Still, the one who does bigger work and on paper get rid of the charges at ease it seems.

White Collar Crimes:

White collar crimes, on the other hand, originally referred to those crimes committed by individuals with a higher social status or upper-level occupation that often required them to wear a suit and a white collared shirt. In this day and age, white collar crimes are those crimes which are generally committed in a business setting and are considered to be non-violent. Some people refer to white collar crimes as “paper crimes”. A few examples of white collar crimes include wire fraud, forgery, embezzlement and more” (Henrickson & Sereebutra LLC, 16.11.2012).

With this in mind, with the knowledge at hand; the ones who does this are higher level of corruption, are inside trading and also their networks. If there we’re judgement fair and caring than the ones who stealing the chicken. The Multi-National Corporations with their profits are accepting to try whatever way of not paying taxes and even when courts are judging even against it; they do whatever they can to cast judgement and also expect to run away from it. Like the Apple Corporation who has dodged taxes illegally in Europe, still trying to dodge the payments of excessive taxes to the Republic of Ireland. If it wasn’t Apple Corporation, but McGuiness stealing a beer at Tesco he would pay dearly for the thieving.

So the White-Collar crimes pays off, like all the embezzled funds world-wide, the grand corruption where the culprits are walking sideways and stashing funds in Swiss Accounts and foreign islands Tax-Havens far away from the tax-man and the ombudsman. The proud force of the world and the reality of it all, that the White Collar can release their mind and get off the way they do.

These Suits who knows the Mayors, Governors, Senators, Members of Parliament, Presidents, Foreign Investors and CEOs! They forged arrangement paying fees, setting up shell-companies and securing family members work inside other businesses. Because of these ties between them the implications cannot become public. The Central Government who forged this deals are also on the line with their reputations while they accept this contracts and agreements between the suits who takes advantage of them.

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That a Telecommunication Company can get licenses cheaply while running a profitable business in the nation. That they are selling airtime and subscriptions to costumers of the nation, while the state employees are in oblivion of the real deal between the Telecom and the MPs who worked under the President to offer the CELTEL Limited the Operation License in the nation. This is happening and nobody acts on the Suits or the MPs…

Still, they get it easy and get off. I wonder why the businesses that are running the mining operations and mining licenses from foreign lands. These owners of giant businesses are keep exporting Rare-Earth minerals and the Coltan; these companies are nearly in charge of guerrillas that are keeping control of the workforce around the mines. That this is going on and the human rights violations are under the direction of the Suits. They get high profits from the deals and arrangement hold by the guerrillas. They don’t get any slack for doing so, they do it in low profile and certainly where the world sees as the wrong zip-code since his crime doesn’t matter.

The White Collar Crime continues and the world just keeps turning. The International business community keeps doing this and living with it. They are feeding the fume for the fire and nobody is really questioning it hard enough. While the Corporate Media owned by the Conglomerates doesn’t want us to question this world order. Where the money goes and who keeps this upkeep, they don’t want us to be enlightened and be in the dark. That as long as the decisions are happening in the boardrooms as Corporate Trade Secrets and Government doesn’t want their dirty secrets.

The Suits prefer these secrets as with the tax-evasion, the tax-dodging practises and the luminous deals done with nondurables in the Parliaments. This with the stakeholders and liability firms that shelves the properties and fortunes that are squandered away like small-change at the cashier in the Supermarket without any consideration of the implication of these transactions.

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It’s time to take this serious, it’s killing society and killing the livelihood of our economies and tax-base with impunity, as the wealthy is getting wealthier and the states are crowd-sourcing more than needed; while the Multi-National Corporations together with the lawyers and board-meetings decide how to trick the money from the expensive and profitable place to the tax-haven. This or making sure the producers and stifle the workers who produce the products as they are wishing to nullify them. This is the reality and the mentality, the ethical and moral conundrum would be to deliver the tax from where you profited and also pay the men and woman decent wage for producing the products. Instead the Corporations try to avoid both and earn a grander margin on each unit they sell. This is all legal, but still should be seen as White Collar Crime!

That is why I ask myself… If we want to get rid of this the investors, the capital of the nations and structure between government and them has to settle in a different way. Because the Government cannot be to connected with the giant businesses, than they will have the ability to deteriorate the levels of governance and the regulations of them.

We have seen that time and time again. The crime of our time is letting this happen and not do anything serious about it. The thieving in the broad daylight and without any concern of the citizens that is not eating of it as they supposed to through the solidarity of the state! Peace.  

Volunatry Suspension of Trading of UMEME Limited’s Shares on the Uganda Securities Exchange (07.11.2016)

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