Opinion: The NRM will miss the DGF

Now that’s it apparent that the Democratic Governance Facility (DGF) is closing in December 2022. This after baseless accusations and demeaning insults from the His Excellency President Yoweri Tibuhurwa Kaguta Museveni ahead of the General Election in 2021. Certainly, he that to control the narratives and in general ensure to silence his critics. While the DGF only did what it always has done, which is to support over 30 CSOs/NGOs who works on governance and civil education, which could have strengthen the society at large.

That’s why the closure of DGF will not only hurt a 100 people who has worked directly in the DGF. No, it will hurt the over 30 CSOs/NGOs who was directly funded by the DGF. Also, government entities and structures, which was also funded by the DGF. The DGF over the last five years has ensured a circulation of Shs. 15 trillion shillings. That’s a substantial amount of currency and monies that are taken out of rotation, which would be there to get domestic revenue for the state and ensure livelihoods of plenty. This will hurt service providers and those who is bound by contracts to the DGF and the entities it provided funds for. It is really compelling the damage the National Resistance Movement (NRM) has done here and it will feel it in 2023.

We know things was bad when the President suspended the DGF in February 2021. While he has lifted the suspension in June 2022. The DGF will not continue now and the regime will feel the losses. Just like the DGF together with NIMD used to support IPOD. Now, there are several other entities that is losing out. That will hurt the government and it’s institutions at large, but we know the President isn’t concerned about it.

The donors who made the agreement with Government of Uganda (GoU) to create the DGF in 2011, which happens to be Austria, Denmark, Ireland, the United Kingdom, Netherlands, Norway, Sweden and the European Union might seek other partners or places to fund. Since, they are not welcomed or has the mechanisms to ensure development goals are met. Because, the donors has again to report to their citizens and taxpayers for the usage of funds. Which means they cannot just waste money and not prove any sort of value for money. That is squandered here, because the DGF was an organization and an umbrella organization, which kept it all organized and good oversight over it.

We know the national budget still needs external funding sources, though the bloated budgets are projecting more domestic revenue by any given year. Though there are common practice of deficits of funds, which leads to more borrowing, either domestically or by other sources. Meaning, the spiral of debts are growing and the nature of financing is becoming more dire. Since, the state has to pay interests and pay old debts to keep up with the programs. Certainly, the state or the republic has no plans to configure or has a back-up for the loss of DGF funding. No, it has lived on these funds for years and thinks the donors are gullible to return the favour anyway.

The National Resistance Movement (NRM) has gambled a lot of people’s futures here. The current day-to-day operations of both government entities and CSOs/NGOs will be hurting for a long time. They will not have payroll or be able to keep up with contracts, which was signed a time back. We will see both local government and NGOs cry out. Especially, when the DGF finally close and leave.

It won’t be that easy for the donors of the DGF just to donate or use funds in Uganda after this. They have had mechanisms and organizations, which have followed statutes and means of oversight. That is needed and gives good basis for them to continue to donate in the Republic. However, when that is now gone and cease to operate. The NRM with it’s baseless attacks and wanting to interfere. Has ensured this loss. They will feel the pinch and the loss of domestic revenue through this. They might not consider it right now. Neither the ramifications of the CSOs/NGOs, but their activities and such has ensured livelihoods of lots of people. That’s why this is biting the hand that feeds you. Without having any sort of back-up or other revenue to ensure the longevity of the partners of DGF, which are getting hurt by this.

The IPOD is just one of them, but there are 30 CSOs/NGOs and a few government entities that is losing out too. That’s where there will be shortfall in 2023 and beyond. Unless, the Government of Uganda is able to talk and negotiate again with donors to create another body to have similar functions. Which I doubt, because, why do that? When you have seen how the NRM and the President has acted towards the DGF? Peace.

Opinion: The GoU isn’t the owner of the DGF

“Today, I hosted the Danish Minister for Development Cooperation. We discussed a number of bilateral issues. I also agreed to lift the ban on Democratic Governance Facility (DGF), to run till December 2022, with Government represented in the decision-making structures. I shall formally communicate our position to the relevant government departments” (Yoweri Kaguta Museveni, 22.06.2022).

You know that someone has ruled for too long when you think donor funds are for you to toy around with and decide. President Yoweri Tibuhurwa Kaguta Museveni has been running the Republic since January 1986 and it shows. The audacity of this man…

Yes, his a real life villain and he thrives on that. He was able to hoodwink people for a generation, but the truth of his actions is catching up to people slowly. The ones funding the DGF should have all ears and listen to the dissidents. Because, there is sinister and dark scheming behind the scenes, which we know the National Resistance Movement (NRM) nor the President want out on blast.

That’s why when his doing this putting condition and stings on “free money”. You just know it’s off the hook. It isn’t for the President nor his state to decide what the donors want it spent on. They can spend how they deem fit and what sort of governance, organizations or state institutions they deem fit. Because, it is their monies and their tax-payers funds, which they have to be accountable for. Therefore, after 18 months suspension and giving nearly 6 months more run-time. It is really showing that the President is tired and cannot manage to not micro-manage everything single thing in the Republic. He needs to know and it bugs him like crazy. That someone else has a vision and an idea in the nation of which he reside and happens to be the Head of State off.

Who are the DGF and why does it exist:

“The Democratic Governance Facility (DGF) was initially established in July 2011 by eight Development Partners (DPs) as a five-year governance programme aimed at providing harmonised, coherent and well-coordinated support to state and non-state entities to strengthen democratisation, protect human rights, improve access to justice and enhance accountability in Uganda. The Programme goal was to contribute to equitable growth, poverty eradication, rule of law and long term stability in Uganda. This programme marked the first phase of DGF that ended in June 2016. A transitional period of 18 months was implemented from July 2016 to December 2017. Currently the DGF is implementing its second 5-year phase (January 2018 – December 2022) with support from seven DPs: Austria, Denmark, Ireland, the Netherlands, Norway, Sweden, and the European Union, to build on the achievements of the first phase, address the continuing democratic deficits, and consolidate peace and stability in the country” (Democratic Governance Facility – What is DGF).

The board of the DGF is also the ambassadors of the respective donor nations and the head of delegation of the European Union as well. So, it has already 6 board members, which represents the ones who is funding the DGF. That is the vital part here. The DGF wouldn’t exist and be an entity without the funding and the operational funds of the donors.

That’s why the President directing and pinning in the ministries to intervene and partake in it is infuriating. This is insulting the donors and their worthiness. It is like the President and his associates believes it’s their birthright to donations and funds of which these nations are bringing. Which couldn’t be further from the truth. They are lucky to receive it in the first place. Why shouldn’t Austria just invest in health care in Vienna? Or the Sweden in Stockholm, Norway in Oslo, Ireland in Dublin, Netherlands in Amsterdam or the EU in Brussels? They are not owing Museveni or the NRM anything. No, this is “free” money and they are lucky to get it and the arrogance of the President shows.

These ambassadors and the board of the DGF isn’t his minions and senior presidential advisors. No, they are there to promote the interests of their respective nations and find good partnership in Uganda. Not being told what to do and whatnot. That is what the President did here and this is how his used to running the Republic. Directing, decreeing and ordering from the “high above”. That mentality shows here after 18 month suspension ahead of the January 2021 polls. Which was supposed to fund opposition activity, a sort of activity he can never prove or show any evidence of. Therefore, the suspension was hostile in the first place.

Yes, the Government of Uganda is sovereign is deemed to do what is see as fit. That I’m not questioning, but the act of suspending this was done in bad faith and the arrogance of him while lifting it. Just shows his true intentions and that he wants to control the DGF directly, which isn’t for him to “own” or “run”. That’s what it seems like he really intends to do. By putting in a crony in the board and such.

Museveni is just showing his dictatorial tendencies. His now telling what the donors should do and direct their funding. It isn’t enough that they are donating and supporting the development of the republic. No, they have to be told what to do. This should be amplified, because this insulting the donors and their respective will to give.

Why should they give to nation that does this? What value is the currency and the will of helping of others, if they are putting rigid stings before getting the money. It is the donors that should decide the spending and where they want the money to go. Since, they are the ones supplying it and funding the DGF. Until, Museveni and his cronies invests in it and actually put the work in. Then they can talk, but for now… the NRM and Museveni should be happy that people and nations are still willing to fund these sorts of organizations, civil society and even government entities through the DGF.

There is enough other places the nations can fund and help out people in need. It isn’t only in Kampala and across the Republic. No, there is plenty of other places with the lack of good governance and other issues, which a sort of DGF could be positive contribution. Therefore, the President should be lucky that this exist. Instead… his targeting it and showing his total disregard for the donors. His just continuing to bite the hand that feeds him. Peace.

Is ex-Austrian Chancellor Sebastian Kurtz becoming a migrant himself?

It is now reported in various European media sites that former Austrian Chancellor Sebastian Kurtz, the far-right leader and anti-migration politician is swapping Vienna for San Francisco, United States. As he will be hired for a position with Thiel Capital and Palantir Technologies.

This means the 35 year old right-wing politician will become an employee under the former President Trump backer. That is very clear that political connections work across borders. Just like Stephen Bannon was trying to muster right-wing allies in Europe as well at some point. Alas, this is a continuation of that.

It is really striking that someone who blocked and worked tirelessly for years to stop people from migrating. A person who worked for unique settlement camps in other countries on the borders of the European continent. A politician who took away rights and made it harder to seek asylum. Now he will have to get a working visa and be allowed to the United States of America.

Kurz knows all of this, but his part of the elite and has been a head of state. Therefore, his uniqueness and specimen is always above all ethical or justified acts of others. That’s why he hasn’t paid a price for his corruption or the cases against him yet. Except for stepping down and getting hired by an ally of the right-wing.

Kurz isn’t the friendly or “good-guy” even if he has been named the “silent-Chancellor” at some point, as he has praised Victor Orban. He is the sort of leader who has silently let his party fellows speak and act racist without any sort of reaction.

The former Chancellor did tirelessly scapegoat immigrants and refugees. Therefore, it is ironic that he becomes a migrant himself. That he is moving from Austria to the USA. Yes, he would make it harder and give less to non-Austrian residing in Austria. What if Americans did the same to immigrants like himself? What if they took away opportunities and blocked social safety nets, which he has done in Austria… Heck, what if he had to be stationed in a camp in Mexico or elsewhere before entering into the U.S.? Because that is what he wanted to issue to the ones entering his nation as a head of state.

That’s why Kurz is a guy who shouldn’t be praised, as he has painted vicious pictures of people migrating to Europe and Austria. Kurz has tried to make it impossible or block people from getting asylum or becoming refugees. As he wanted to keep Austria more Austrian and give less reasons for non-Austrians to migrate there. That’s what he has worked for years… and now he will migrate himself.

Kurz isn’t a hero and he should be called out for it. Since he has given so much pain to people and thrived on it. Now, he is moving and that should cause a stir and rightfully so. Peace.

Opinion: Mzee now thinks civic education equates to destabilizing the country…

“Part of this money is to support and facilitate various groups and entities in Uganda to conduct what they called deepening democracy in Uganda. The President and government think that this money was brought to distabilise the country. So that is the gist of the concern of the President and the investigation will tell us the money trail and what it has done” – Ofwono Opono in an interview (Ali Twaha – ‘Government links DGF suspension to politics’ 05.02.2021, New Vision).

The suspension of the Democratic Governance Facility (DGF), which is directly funding over 70 Civil Society Organization/Non-Governmental Organization and also their various of programs was suspended by the President in January 2021. As the President and the government was preparing to go to the polls and it had already hold grudges towards civil society for so long. This is the latest attempt to crucify and assault the ones working for a better governance in the Republic.

We know that President Yoweri Kaguta Museveni doesn’t want to listen to others. Neither does he want the input from anyone else either. However, he don’t mind free-money and slush-funds to spend as he see fit. That is why he goes after the DGF as it is a fitting “enemy” which he cannot directly control or have his hands in the cookie-jar.

Government Spokesperson Ofwono Opondo is saying it deliberately. They are calling it destructive. Because, they are undermining the “personification” of the state, which happens to be the President. The DGF’s civic education and programs are working indirectly to build sufficient institutions, policies and reforms, which in the end will weaken the power of one man. It would in the end be for good governance and accountable state organizations. Not just be ordered from “high above”. That is why OO and President is speaking ill of this. This will in the end weaken their drive and total control of the state, in the manner, which things are done today.

The “destabilizing” effort is indirectly weakening his reign and rule. The National Resistance Movement (NRM) have no troubles getting direct aid and grants for their government to run. However, they have trouble having the same donors paying for salaries, programs and civic education across the Republic. That shows a double standard and that the President have no trouble eating of the plate directly, but doesn’t want to be told how to be accountable for his eating. He wants to spend money, but don’t want to show recites. That is the memo I am getting from this.

It shows that his a weak man. The President and the government have had no issues taking money from Western donors like the ones who funds the DGF. If they are so afraid of the independence and the questions of usage of funds. The government shouldn’t accept any funds with possible sting attached. The state shouldn’t take loans or grants from the outside. If the donors cannot sustain organizations (CSOs/NGOs) who works with other ideals than the President at this current day.

That is the reality of this all. There is no free lunch. It has never been so. There is always something attached and expectations of an outcome. If you borrow money to build a road, the lender hope you build the road, but also repays the loan with interests. If you take a donation or a grant, then its expected to go to a certain organization or work, which is beneficial for the ones receiving it. That is just a mere reality we all know.

Now, the ones receiving it wants to directly control the funds and how it is spent. When it was funds, which wasn’t his in the first place. They are worried of the efforts and effects these organizations have in the Republic. However, we all know that the President just want to eat and don’t bother with questions. This is why he has retaliated, because he can and he want to show strength. Nevertheless, these acts are an act of a coward. A coward who has taken money all his life, but now cries foul. It is a bit late when you been eating for over three decades and never caused a fuzz. Peace.

Opinion: Museveni suspending the DGF is biting the hand that feeds him

Now that the letter from President Yoweri Kaguta Museveni to Minister of Finance Matia Kasaija is out. The infamous letter where he suspends the accounts of the Democratic Governance Facility (DGF). This is important, because the DGF supports programs and organizations across the Republic. The DGF is sole funder of several of civil society organizations and non-governmental organizations. There are atleast 70 of them that is hit by this and would cease operations, as the funding and lack of funds to pay staff. That is all happening, because Museveni wrote a letter in early January 2021.

President Museveni have targeted CSOs and NGOs around election time. That is common. That he claims they are up to “no good” and supporting “terrorism” or any other objectively bad enterprise they can. That has been common for decades. However, ceasing their funding totally and blocking a multi-national funding scheme like the DGF. Only undercuts the ideals of the givers, the donors and the ones who monetary support the government and people in the Republic in general. This isn’t government funded money from the tax-base. No, these funds are given from outsiders to support governance and other organizations to strengthen democratic institutions and educate the masses.

The DGF is a collective fund donated by the European Union, Austria, Denmark, Ireland, Netherlands, Norway and Sweden to support programs and CSOs/NGOs in Uganda. They are partnered with at least 72 organizations across the republic to different capacities. All working in various of fields and for causes to better the Republic. They are all civil society voices for good governance and creating a freer society. However, that is clearly not the beacon that the President believes in anymore.

The donors that see this action by Museveni should shun him and cease all direct donor-funds and also block all loans through multi-national organizations, which the donors are funding as well. That would make it harder for the President to operate and he would seek funds elsewhere. If he wants to be free of stipulations and not have any oversight. This cutting funds to International Monetary Funds (IMF) and World Bank (WB). Also others where the Government of Uganda is seeking loans for development projects and government programs.

The National Resistance Movement was able in the late 1980s and 1990s to have progress and financial backing to pursuit the government programs, which is it so proud of. The state also saw debt relief and cuts from donors. Now, the NRM is gaining more debt, but also putting in obstacles with the donors in regards to the DGF. The ones funding DGF should suspend all other funds and funding that goes towards Museveni. As a retaliation to this, as these projects, programs and NGOs/CSOs are working for ideals that Museveni once stood for, but with lingering in office despises.

We are clearly seeing the punitive action made by Museveni. He wants to prove supremacy, but does it in a mockery of a way. This is only showing the donors what sort of little man he is. That he has to go to this step. Take away the securities of the CSOs and NGOs. Instead of actually serving the general public. If the President really did that. He would haven’t have the need for all these CSOs/NGOs to cover where the government is lacking. The state is fluid and lacking institutions. That’s why the state needs them to cover the basics and civic education. This is still needed after over 30 years in power. That shows the weakness of the Presidency and his reign.

President Museveni isn’t showing strength here. His showing weakness and lack of control. That he got to act like this. This is acting a villain and hurting own citizens, because he can. So, the donors should act upon this and not just take it on the chin. They should show force too. Just to prove him what he has done. It is about time and not just “condemn” and move-on. That is not making any changes or challenging the old man. You need to meet him head-on. He plays games and these are with the lives of all these organizations. It is not the money of Museveni and neither funding from the state either. That is why his sour, as he got to loan to pay his cronies salaries. This is why he attacks and confronts, instead of talking and negotiating with the donors.

What he does with this is putting himself in corner and making less friends. If he wanted more support and legitimacy. He should have acted differently. However, he rather picks the trick of the pariah, instead of the friendly grand-pa, which is what he tries to act in the media. That is clearly not working and that is why this letter is undressing his motives. Peace.

Uganda Cancer Institute Press Release glitches in the radiotherapy machine (30.08.2018)

It was a late birth for the New Cancer Machine at UCI, Mulago Hospital: The Saga lasted from 2013 to 2018!

Yesterday was supposed to be celebrated, but however, I can’t. Not honestly, not, no, not knowing that this process of procurement and knowledge of possible unnecessary demise of dozens of cancer patients, while waiting between March 2016 to January 2018 for possible treatment. It is insane.

Therefore, when I read crap like this yesterday, when the Machine was launched by Prime Minister Ruhakana Rugunda, I don’t celebrate:

“The Prime Minister Ruhakana Rugunda has commissioned the new radotherapy machine at the Uganda Cancer Institute Mulago. This follows the purchase of a new radiotherapy machine after the old one crushed in April 2016. According to Dr Daniel Kanyike the head of the radiotherpay department at Mulago, 80 patients are attended to per day and they suspect the number will increase after the commissioning today” (Sudhir Byaruhanga, 19.01.2018)

Because, I have a letter dated back to IAEA from Dr. Byahagaba from 28th May 2013, where the funding of 325,297 Euros was deposited to the UniCredit Bank, Austria, Vienna on the 22nd May 2013. To start the procurement of a new Cobalt 60 Cancer Machine to Uganda Cancer Institute at Mulago Hospital. However, this has been lost in the story, that suddenly NRM moved swiftly in 2017 and got it ready for 2018.

It might be true that old one from 1995 – finally gave way and broke down in April 2016 before the General Election, the same fall. However, that doesn’t mean, they started procurement and facilitating the funds for a new one. They used longer time and awaited the destruction of the old one, before getting a newer model that actually worked.

They didn’t act quickly or swiftly in this affair. They moshed it together in a stew and hope to get gold, instead they are boiling bones and hope to taste the real deal. It is a mess and was a mess.

Because I still remember this:

“Cancer patients receiving radiotherapy treatment at Mulago hospital may have to wait until next year when the new cobalt 60 radiation machine will be installed, after the old one broke down three weeks ago. According to Dr Jackson Orem, the director of Cancer Institute at Mulago hospital, it may be difficult to repair the radiotherapy machine, procured in 1995, to render efficient results” (EA BIZ INFO, 08.04.2016).

Secondly, when NRM says April 2016, well, Dr. Orem speaks about three weeks before April, that means it broke down in March 2016. So the NRM cannot hold one piece of the story correct. Not even when it breaks down!

Therefore, the promise waited on results because of hardships to make a new space and have a new machine in where the old one was. The Uganda Cancer Institute had to wait and secure funding for a new one, even if they had already started procurement in 2013. Something they should have focused one, before making sure the old one crashed. This has clearly cost lives, since the Cancer patients have not been sent in drones in Kenya. They got some promises to Aga Khan in Kenya, but that was only for a few lucky ones. We can imagine how many cancer patients lost their ability for treatment between March 2016 and January 2018. It is insane, but also the structure and carelessness the National Resistance Movement (NRM) is known for.

So this has been a long await, which could have fixed before and was already in the making. Who knows why the authorities and the NRM didn’t fix it in advance, when they already paid partial payment in 2013. Years before it broke down. It is foolish and nonsense, when this is the only type of this machine in the whole Republic. Then, not being able to for-see its demise.

Well, NRM can think of this a propaganda victory, since no-one is questioning much and just is happy. The public shouldn’t be, because why didn’t they fix it earlier and made sure for a transition from one machine to another? Peace.

The Saga of the New Cancer Machine of Mulago was not a two-year scheme!

Let’s be honest and clear, the story of the Cobalt 60 Teletherapy Machine from the mid-90s, who was not sufficient and had not been changed within time. Was not a two-year long waiting period of nostalgia, it was mismanagement with the cost of lives and devastation. Any government caring about lives, would have planned and made sure of funding for a new one, long ahead, especially considering the last one was bought in the mid-1990s. This is the true acts of maladministration and misuse of state reserves. That is evident, and also that the Ministry of Health, who only had one these, couldn’t make sure the procurement went softly and made sure the facilities could be fixed in time to put in a new machine. Even if it matters of lives and people’s serious treatment.

Only two year?

“After almost two agonising years of waiting, cancer patients will breathe a sigh of relief after the new radiotherapy machine arrived into the country this week. It was shipped from Czech Republic through Mombasa port with guidance of the International Atomic Energy Agency (IAEA), a United Nations body that regulates use of nuclear and atomic energy. Purchased at 642,000 euros (more than Shs2.7b) by both government and IAEA, the machine replaces the old cobalt 60 radiotherapy machine, which broke down beyond repair on March 27, 2016, leaving about 2,000 patients without proper treatment and some people died in the process” (Ainebyoona, 2017).

What about 2013:

Because I have a letter dated back to IAEA from Dr. Byahagaba from 28^th May 2013, where the funding of 325,297 Euros was deposited to the UniCredit Bank, Austria, Vienna on the 22^nd May 2013. This was funding for the purchase of Cobalt 60 Teletheraphy Machine. Therefore, the Daily Monitor or the Mulago Health Care Complex has given som wrong information.

If not the final instalment for the purchase of the machine has come in the aftermath, which is a significant sum of monies, since it is 315,000 Euros that has appeared and made sure the buying of the machine finally appeared.

This sort of acts should not let it go easily, that a state with millions of lives, that are in-charge of making sure their citizens are healthy. Only has one Cancer Machine and that one has been out of function for two years, and it took about at-least 4 years, since 2013 to be able to purchase the equipment and use it for the public benefit. Clearly, the National Resistance Movement (NRM). Isn’t worried about losing their citizens or making sure the health is in check. Surely, the do not worry, since the President sends his own kin abroad to give birth. He knows the meagre state of the facilities of where he has resided and run. He eats the reserves and leaves scraps behind. The evidence in the 4 years in the making of the Cancer Machine. It is good it is there, but the time and effort is mediocre at best. Nearly depleted and destructive, as the concern of the cancer wasn’t even there. Peace.

Reference:

Ainebyoona, Mmanuel – ‘New Cancer Machine finally arrives into the Country’ (12.08.2017) link: http://www.monitor.co.ug/News/National/Sigh-of-relief-as-Shs2-7b-cancer-machine-arrives/688334-4054904-vf8309/index.html

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

“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!

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).

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).

“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).

“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).

My letter to Jean-Claude Juncker on the proposed EU Army!

Dear Jean Claude Juncker, the President of European Union Commission and former Prime Minister Luxembourg; you had a moment of glory or you might thought so honourable Jean-Claude.

I am just a member of EFTA by default as a Norwegian citizens and since my country isn’t a Member State; I’m sure in your opinion my opinions doesn’t exists because the ones that matters are the citizens inside the Union. Still, I want to write to you as citizen of the world and worried about you Napoleon complex and hereditary idea of stronger federalism of Europe. This happens in the same week the underlings of you doesn’t’ want to be accountable in the European Parliament; this are the Member States who has Members of European Parliament (MEPs). So with this in mind are these the men and woman who should be responsible for deciding warfare in the name of the Europeans when we can’t know how much they spend on the taxpayer’s funds while representing their states in the Union?

Well, I know I am trading waters now and sound a bit strange, but the hesitation on the matter is the inaccurate faith you have in the EU and their institutions. The general European is not there with you as the disregard for the daily life of European feels estranged from the boulevards of Brussels where you are stationed unless you commute from Luxembourg. That is not for me to judge. What I will more judge is the idea of a European Army!

European Army is setting the precedence that the 28 Member State’s will comply and accept to donate and keep the strengthen defence and military upkeep through the Union. That is also to connect the defence budgets and the military equipment production stronger in the EU. That must be put into the calculation. Not only keep a solidified borders as the Commissioners fear the Islamic Terrorism and the refugee crisis to the levels that Europe needs a bigger and wider army. That is controlled by the unaccountable MEPs and EU Head of States, the Consilium that will order this giant army.

A unknown giant army that will base by the 28 member states and put a prerogative of the federal state controlled by Brussels, as they already have issued currency, bills and now a Army. So the missing piece for you is the army and king. Honourable Jean-Claude you are acting with spite and fear if you enforcing the idea of an European Union Army and Defence. That is not the sign of peace or collaboration Europe needs. Especially with the ways that Cyprus and Greece economy has been liberated and sold to foreign investors while the taxations are slimming even more with the policies from the Central Institutions of the EU.

With those acts of spite and diligent betrayal of common sense in the banking industry of Greece and Cyprus; not even saving but bailing out with the whole-sale of nations. That coming with effect of the Brexit recently, you want the unaccountable MEPs to run an Army from Brussels. Do you know how insulting that is the European people and citizens, Jean-Claude?

Can’t you just take control of the Eurovision Song Contest or something; make sure the trade-laws and negotiations between Member States are following the guidelines of the Brussels accords. The Union you currently abide to is a currency-union, free-movements of people and goods and ‘universal’ policies that they have to follow no matter which country you live in. In that sense an army is needed, but that gives powers to Union and something Europe not seen before.

We have had the NATO that many of the current members of Union are obliged to serve and follow the codes of the agreement. As much as the European States has co-operated in military unifications it’s been training and peace-operations that many of the Member States has participated in.

If you think it is healthy to have a giant army directed from Brussels than the powers of the Union is more giant multi-national state, federalism and centralized in Belgium than people might express wishes for. Europeans want their states to have power and keen that their representatives have power and accountability within their domain; if the Brussels thinks it is good idea to take the guns and ammunitions from Madrid, Prague, Vienna and Copenhagen. Than they will have to ask what their own armies are supposed to do? How are the pecking orders of the EU General and Danish General? Are the orders from Brussels trumping the ones of Stockholm?

An European Army is the answer to fatigue and gesture of complex gravitas as the European Member States deserves their sovereign and rights to defend themselves within the military alliances and military benefits the nations. If the EU thinks it is wise to counter this and control it centrally than they can initially take over all powers and make a EU Police. Then all of the law’s and orders will controlled by the Brussels under the new federal jurisdiction of EU Commission and the Consilium. That in the end will be voted over by the unaccountable MEPs in EU Parliament. So they can decide if the army need to invade or guard Gibraltar or Guernsey from the Pirate Bay.

Let’s be clear Jean-Claude Juncker, the one man in Europe with clearly a Napoleon complex! It’s time to whine down and take a beer. It is time to render the times of not-so much peace in Europe and wonder what the EU has lost. What powers the EU has taken in times of Peace and less hostility. What kind of powers the centralized Brussels decrees are burdening the towns and villages of Europe that you never will put your foot in Mr. Jean-Claude.

The Army you propose to counter foreign invaders is absurd and worrying. The EU Army will only be beneficiary for a un-elected aristocrats who will use it to silence criticism and the citizens who disobey the command of Brussels. It will not be a defence organization that can be sustainable to keep greater powers out. This army will only cause frictions and be a power that can be used in Neo-Colonial affairs for the former European Empires to control their former colonies. This will not be an army for peace; it will create more bloodshed in the names of spoiled rich EU observers and their elites. Is that what you want Jean-Claude?

Your EU Army will not be a tool for peace, but for rivers of blood, for loss of lives and loved ones. For the concern of foreign dignitaries and their allies; this create a hatched hiccup of world order and the destination unknown as the EU Parliament who will obey the command of their leaders will send their citizens to wars for resources at one point or another as recessions and market-crash’s happen once in-while. It is just a matter of time before a legit war intervention becomes an excuse to export needed minerals to Europe. That is what the Army will be for right, Jean-Claude?

You should first implement the Federalism fully before pledging the idea and dream of multi-national army those bounds of future conquests and current problems as they want to have fortified walls and gates of Europe. If the EU Commissioners start to think of the EU as Rome Empire than he has also lost the plot as the twist and turns of the vague Union; if he wants the weak Union to grow stronger there needs more trust between Berlin, Prague and other capitals nota army to silence the ones who disobey. Does he want to be emperor… new royal lord of Europe instead of a possible statesmen; the greed of a man who forgot the principals and dynamic of Europe as he sits in the bureaucracies of Brussels. Peace.