Tag: South Africa
Press Release: Kenya must review Double Tax Agreement with Mauritius (02.11.2015)
(Nairobi, November 2, 2015) – Kenya is teetering on the brink of financial meltdown with the implosion of at least two private commercial banks in the last few months and signing of loophole-ridden double taxation agreements with tax havens Mauritius, United Arab Emirates and Qatar.
Tax havens are countries or states that position themselves as low tax jurisdictions allowing companies and rich individuals to hide their wealth without paying appropriate taxes where they actually make their profits or wealth. Tax Justice Network-Africa (TJN-A) in October 2014 sued the Government of Kenya (specifically the Cabinet Secretary to the Treasury, Kenya Revenue Authority and the Attorney-General) challenging the constitutionality of the Kenya/Mauritius Double Taxation Avoidance Agreement signed in Port Louis, Mauritius on May 11, 2012 and as contained in Legal Notice 59 published in the Kenya Gazette of May 23, 2014.
The Agreement significantly undermines Kenya’s ability to raise domestic revenue to underpin the country’s development by opening up loopholes for multinational companies operating in the country and super- rich individuals to shift profits abroad through Mauritius to avoid paying appropriate taxes. For example, provisions under Article 11 of the Agreement relating to interest limit Kenya’s withholding tax to 10 per cent whereas the Kenyan domestic rate currently stands at 15 per cent. This will significantly affect the tax base of the Kenya Revenue Authority (KRA). The Agreement also sharply contravenes Articles 10 and 201 of the Constitution and is inconsistent with the principles of good governance, sustainability and accountability. The Agreement is open to abuse and this could endanger the growth and development of Kenya.
Three main reliefs sought by TJN-A are: that the High Court declares the government’s failure or neglect to subject the Kenya-Mauritius Double Taxation Avoidance Agreement to ratification in line with the Treaty Making and Ratification Act 2012 as a contravention of Articles 10 (a), (c) and (d) and 201 of the Constitution of Kenya.
That the Court directs the Cabinet Secretary for Treasury to immediately withdraw Legal Notice 59 of 2014 and commence the process of ratification in conformity with the provisions of the Treaty Making and Ratification Act 2012. And award cost of the petition with interest against the Government of Kenya. The case came up for mention at the Nairobi High Court today, November 2, 2015. The court will fix a date for hearing the case on November 9, 2015. Speaking at a press briefing earlier today, the Executive Director of TJN-A, Alvin Mosioma said “there is need for public participation in the process of ratification of double tax agreements…double tax agreements kill the competitive edge of local firms”. 2 Senator Hassan Omar of Mombasa County who also addressed the press said Kenya’s “Parliament needs to appreciate its responsibility in safeguarding the public’s interests,” adding that “the reason people steal is because there is complicity and people are aware of it”. Provisions under Article 12 of the Agreement which relates to royalties also restrict at- source withholding tax to half (10 per cent) of Kenya domestic rate of 20 per cent. This will significantly weaken Kenya’s ability to raise revenue to finance its development. Additionally provisions under Article 20 of the Agreement reserves all taxation of “other income” not dealt with in specific Articles to the residence state.
This effectively reduces withholding tax to zero per cent on services, management fees, insurance commissions among others, whereas Kenyan domestic withholding tax rate currently stands at 20 per cent. This is a major gap that will lead to massive revenue leakages. The Agreement is neither United Nations nor OECD compliant and it also fails to address the issue of disposal of shares in companies. The Agreement effectively reserves under Article 13.4 all taxation of capital gains from selling shares in companies to Mauritius where the effective Capital Gains Tax is zero per cent. Under the Agreement foreign investors in Kenya can acquire Kenyan companies through Mauritius holding companies and Kenya cannot tax any of the gains when they sell these businesses again. This is open to abuse. Similarly, domestic Kenyan investors can dodge Kenyan taxes by round-tripping their investments illicitly through Mauritian shell companies. Kenyan companies can also easily avoid Kenyan taxes in dividends paid to foreign investors through devices like share buy-backs therefore deny the government of development funds.
The provision is very similar to the Capital Gains Tax Article in the India-Mauritius treaty which has proved very controversial costing India an estimated US$600 million a year in revenues as a result of tax avoidance and illicit round-tripping by Indian business executives driving the Government of India to initiate steps to renegotiate its agreement with Mauritius. Under the definition of ‘bilateral treaty’ in Section 2 of the Treaty Making and Ratification Act an ‘agreement’ such as the one between Kenya and Mauritius and which is the subject matter of this legal case, is a treaty subject to the Act and therefore requires that the Cabinet Secretary to the Treasury in consultation with the Attorney General, submit to the Cabinet the treaty, together with a memorandum outlining, inter alia – 1. Policy and legislative considerations, 2. Financial implications 3. Implications on matters relating to counties, 4. The views of the public on the ratification of the treaty.
Mauritius presently has tax treaties with 13 African countries namely Botswana, Lesotho, Madagascar, Mozambique, Namibia, Rwanda, Senegal, Seychelles, Swaziland, South Africa, Tunisia, Uganda and Zimbabwe. Apart from Kenya, Mauritius also has signed Double Taxation Agreements with Congo, Zambia and Nigeria. Currently Mauritius is negotiating DTAs with Algeria, Burkina Faso, Egypt, Gabon, Ghana, Malawi and Tanzania. Unlike Mauritius’ DTA with Uganda and Nigeria, for example, which have specific provisions for withholding tax for management/technical services fees, Kenya failed to negotiate any such provisions.
In a related development, the Government of Kenya has signed an equally harmful Double Tax Agreement with United Arab Emirates and Qatar – both of which are tax havens – in which Kenya further deems its right to tax as unnecessary in a bid to attract investment from these two countries. These agreements will deepen Kenya’s current cash crunch by allowing the further erosion of the country’s tax base. – END.
ABOUT TJN-A: Tax Justice Network-Africa (TJN-A) is a Pan-African initiative and a member of the Global Alliance for Tax Justice. It is a network of 29 members in 16 African countries. TJN-A collaborates closely with these member organisations in tax justice 3 advocacy at the national and regional levels. TJN-A seeks to promote socially just and progressive taxation systems in Africa, advocating for pro-poor tax policies and the strengthening of tax systems to promote domestic resource mobilisation. TJN-A aims to challenge harmful tax policies and practices that favour the wealthy and aggravate and perpetuate inequality. For further enquiries, please email Kwesi Obeng at kobeng@taxjusticeafrica.net (+254 726 804 400) and/or Michelle Mbuthia at mmbuthia@taxjusticeafrica.net (+254 724 994 796).
“Equitable University Access is Achievable” – Bokamosa by Mmusi Maimane
Government of South Africa already had the KEY to “Fees for Free” for Higher Education
Here has been told how they could make it in 2012. How to fix the accommodations and different structures and fees together with the historical views on how to fix the monies situations for the poor so they can be a part of the higher education in South Africa. Because if there will be bridging the gap and getting more people education there will be over time strengthening the manpower and levels of technical production. Also there views and patterns of society will generate more people an opportunity to be educated and gain more for getting the low-income parts of the citizens to rise into another social bracket and bring more of their own with them as people do when they get into a great and better situation. Let’s take a look at the government of South Africa’s lost key!
“The White Paper (1997) recognizes that South Africa’s stark income disparities were a barrier to higher education enrolment, and argues that the direct cost to students be proportionate to their ability to pay. This basic principle underlines the imperative that access by poor students must be subsidized by the state through a system of financial aid. Arguing against the idea of a general system of fee-free higher education, the White Paper instead proposes a state-funded student financial assistance system that has since became known as the National Student Financial Aid Scheme (NSFAS)” (Report P: V).
“The White Paper immediately adds, however, that it is important that “the direct cost to students should be proportionate to their ability to pay” and that “financial need should not be an insuperable barrier to access and success in higher education”. Referring to the need for “a realistic fee structure”, it explores options for the provision of student financial assistance for poor students” (Report P: 5).
“Finally, the Green Paper for Post-School Education and Training (DHET 2012) outlines government’s intention gradually and carefully to expand enrolments and participation rates at universities, so as to cater for 1 500 000 students (at a participation rate of 23%) by 2030 (DHET 2012: x). Government aims at the same time to phase in free undergraduate university provision for the poor, “building on the progress already made in expanding financial aid through NSFAS” (DHET 2012: 5). The reference here to progress already made is to the conversion of NSFAS loans to full bursaries for those students who complete their final undergraduate year successfully. The DHET envisages that “this programme will steadily be introduced to cater for students in the pre-final years” (DHET 2012: 48)” (Report P: 9).
“University education, because of its intrinsic characteristics, and as compared to the basic and secondary spheres of education, is a costly social service. It directly benefits a fairly small segment of society at any one time, and indirectly benefits society which makes use of their knowledge and skills” (Report: vi).
“Historically, although the idea of ‘free’ access by the poor to higher education, and the role of the state in its provision, is relatively new to South African policymaking, it has a relatively long track record in many other countries. In the last century, especially since the 1920s, this basic idea – of providing access opportunities to the ‘children of the working class’ to traditionally elitist universities – has preoccupied policy-makers in many parts of the industrialized world” (Report P: 12).
“In 2005 the Department of Education reported that of the 120 000 students who enrolled in higher education in 2000, 36 000 (30%) dropped out in their first year of study. A further 24 000 (20%) dropped out during their second and third years. Of the remaining 60 000, 22% graduated within the specified three years duration for a generic Bachelors degree (Letseka and Maile 2008: 5)” (Report P: 33).
“The Ministerial Review argued that in order for the current system of student financial aid to realize its potential fully, it must overcome a number of challenges. The first of these challenges is the use of race as a proxy for socio-economic need, which, in terms of the current formula, results in unequal institutional allocations, with historically advantaged institutions with affluent black students receiving the same allocation as historically disadvantaged institutions with many poor black students” (Report: vii).
“South Africa does not have an official singular definition of the poor, with different government departments using different definitions. Statistics South Africa and the National Treasury have proposed a poverty line based on ‘the money income needed to purchase a nutritionally adequate food supply and other essential requirements’” (Report: ix).
“”[f]ree university education means that workers on low to average wages substantially subsidize the university education of the children of higher income families, whom as a result of their university education will, on average, receive much higher incomes. Therefore, ‘free’ university education involves a substantial transfer of money from low income to high income households” (Li 2011:467). On the other hand, the probability of going to university is higher for children from middle class families. The result, however, is contingent on the taxation and other policies in the country in question, as a graduate tax, for instance, could offset some of these effects” (Report P: 14).
“The Ministerial Review of NSFAS estimated that NSFAS would need at least double its budget to meet even current demand (DHET 2010: 16). If participation rates were to increase, significantly more funds would be required. Unfortunately, government funding of public universities has been on the decline over the past decade: according to the Financial and Fiscal Commission, drawing on HEMIS and DHET data, the share of government grants in the total income of the public university system fell from 49% in 2000 to 40% in 2010, with both tuition fees and private or third-stream university income increasing to compensate for this decline. Expressed in terms of the number of enrolled students, government funding per full-time equivalent student fell by 1.1% per year in real terms between 2000 and 2010, while over the same time period, tuition fees per full-time equivalent student increased by 2.5% per year in real terms (FFC 2012: 53-4)” (…)”NSFAS faces several major challenges. First, it receives insufficient funds from government to meet the growing demand for financial aid by poor students. Second, it has been badly governed and managed since its inception. Third, the very high dropout rate attests to the fact that NSFAS has not addressed the key issue of ensuring that access is accompanied by success (Report P: 27).
“Other than historical factors and the inefficiencies of the school system, the present higher education funding architecture is a key reason often identified as an obstacle to an expedited expansion of higher education access. The higher education funding regime is currently characterised by declining real per student funding, for which universities have sought to compensate by, inter alia, regularly increasing tuition fees. This in turn has put pressure on NSFAS which, unfortunately, has not been able to adequately support all qualified and deserving students (Wangenge-Ouma 2012)” (Report P: 29).
“Furthermore, it would be wrong to assume that education functions best as a ‘free market’. While universities do compete for the best students, they do so not on the basis of price but rather on political, social and educational criteria; this can never be a meaningful buyer-seller relationship. University places are limited and students are selected on merit, not buying power. Policies whereby funding follows individuals, and to this extent are focused on individual advancement, may need to be balanced against policies which build state provision for the long-term benefit of society” (Report P: 37).
“Creating a higher education system characterised not only by increased participation and reduced dropout but, above all, free undergraduate study for the poor, will not be cheap. By definition, the households of poor students will not be able to share in any of the costs associated with university study, and even the households of slightly less poor students will be able to contribute only a small portion. Simply to make it possible for the 2013 cohort of students, for example, to begin receiving free university education, will require that NSFAS be given the financial muscle to advance loans of about R14 billion in 2013 prices” (Report P: 48).
Recommendation:
“Funding for free university education for the poor should be obtained, at least in part, from the funds of the Sector Education and Training Authorities (SETAs) and the National Skills Fund (NSF)” (…)”Although in some instances these SETA funds are already being used for bursaries, short course skills programmes and internships, and notwithstanding the fact that various private sector companies and public service departments already support poor students in these ways, it is important to ensure that these funds and support, along with portions of corporate social responsibility funds, are organised and managed under a single, NSFAS umbrella, rather than being disbursed, as is often the case at present, in piecemeal and uncoordinated ways” (…)”For example, the private sector, and perhaps especially the large financial institutions, as well as international donors, may be willing to offer reasonable loans, if state guaranteed, to poor students who are in their final year and who have demonstrated their current dedication and future earning potential” (Report P: 50).
Afterthought:
This report has the answers to how they can implement free-fee or proper pricing of the higher education in South Africa; certainly the issue of not implementing it or even releasing it, because yesterday I read through the final draft of it.
There were more things to high light from the report it had also the difference ways of giving the fees and how to repay the fees that are in the countries, but in the recommendations that didn’t look like a consideration of the department. The main issue is that they was offering a advice on building on the already set function of the National Skills Fund and Sector Education and Training Authorities.
The cost of dropouts already in 2012 has to be about the same today and since they have implemented anything towards the cost of being a student while the intuition fees are running higher. Therefore when you already have a costly functioning system, than it should be open for greater part of the citizens of the country, not just the upper echelons of society.
That is an issue in many countries. The Republic of South Africa is not alone in that matter. What they might be alone in, is that they have the keys to the door, but don’t want to open the door. To open that door takes action, a certain level of moments of the characters and institutions. Also the government needs for facilitating and budgets to sustain the free-fee programs; which might lead to somebody in central government actually opening the door to the other place. That can happen if somebody or a government body has the ability to implement the key into lock of the door. So long as the door in locked and even with the key in hand. It feels like a missed opportunity to give something to coming students so they can evolve and gain maturity through studies they usually wouldn’t have the economical capacity to get into the campus life or studies in general, because even if the candidate for studies has the ability as a person to study, but not the money, then the state of South Africa is losing over time qualified workers and educated personnel that they could have gotten.
So now it’s up to the ANC to live up to their heritage and tradition. If that still means something or the only means right now is to build mansions for the new elites instead of building a growing society of prosperity for more of the citizens. Bond the different levels of society from youth towards pension age. This here isn’t easy at all, to build something sustainable and use the funds and opportunities for the general public to gain. The main issue is that they had the KEY at hand to OPEN the DOOR if they wanted to since 2012! ANC could have put things and movement into place and in the right forums to adjust and implement structures to secure a better level of studies for the POOR, even if the Republic of South Africa doesn’t have an definition of POOR. So now we all can ask, because this was draft and never intended to release from the Department of Higher Education which is under Blade Nzimande the minister has had this position since 2009. So he must have known about this all along.
And what I wonder about now is there more departments in the Zuma ANC regime who has more lost keys to official issues or structural reforms that can build society stronger, or is just one lost KEY?
And if so, please ladies and gentleman tell me. Nothing is as good for a transparency and accountability as shedding the light on the matters that the governments and ministries, and government bodies that they don’t want to tell. Because that might shift the moves of the men and woman in power, also gives them a smack that they need so they can use the KEYS and not just relax in the government buildings instead of doing their civic duty! Peace.
Reference:
Republic of South Africa – Department of Higher Education and Training: ‘REPORT OF THE WORKING GROUP ON FEE FREE UNIVERSITY EDUCATION FOR THE POOR IN SOUTH AFRICA’ (Oktober 2012) – Final Draft.
Amuru Land Grab: What is ours, is OURS; What is their’s, is OURS; and Whatever is your’s, is still OURS
There has been a lot of news and articles on this matter because of the sensitive issue of owning land. Land can secure families and secure the heritage of the local people in the area. The issue is how to deal with wish of growing society and also keeping traditions. Also settling people in after years of war with the LRA and settle especially the ones that are seen as Internal Displaced Persons (IDPs). Another issue is if the government tries to deal with big monies and doesn’t include local patrons or community. That disfranchises the people and also grows a bigger distrust from the community about the government institution. That also shows the true color of especially some of that is, also the matter in the Amuru Land grabbing. I will not look into the local squats between families and also IDPs and local farmers stealing land from each other. That is equally important. But don’t have the space to write and find a good way to put it into this one. NRM-Regime has from day one been laisses faire economics and not governmental business orientated even if the President of 29 years was into communist thinking in the 70s. Also into business that gains the government, but not actually the public and citizens always. Therefore we have the heavy prices and expenditure of roads. The deals and arrangements hasn’t been made in sincerity of the public, therefore has also the MPs from the area in now bot the 8th Parliament and the 9th Parliament has reacted to deals that been set in fruition. The Madhvani deal is the big one and the one with the most flesh and grants. Also the Apaa village dispute over the land becoming a hunting ground instead of being a village for the people who actually live there. Then I will show other deals that have been questioned. This was the gist!
Professor Ogenga Latigo spoke his mind:
“While referring to the process of land acquisition for the project, Professor Ogenga Latigo, the former Member of Parliament for Agago county and Leader of Opposition in the 8th Parliament indicated that ―Government mishandled the Amuru case, while others informants argued: ―”The idea is not bad but the approach of establishing the sugarcane factory [was wrong, and besides the project] is imposed on the people, the project should be started when the people have returned to their land. The priority should be to give chance to the locals to resettle before establishment of the sugarcane factory” (Serwajja, 2012).
Basic information from 2005:
“Gulu district in her endeavor to alleviate poverty and promote development is committed to mainstream environmental concerns in its implementation strategies. The district continues to rely on the natural resources as important sources of income. It is been noted that over 82% of the population depend on agriculture and this can call for immediate up-date on status of the natural resources in the district” (Langoya & Ochora Odoch, 2005).
Land Law information about in Uganda:
“Tenure arrangement:
Until 1995, customary tenants did not legally own land they occupied. The land belonged to the State, and the tenants were merely permitted to live on it (Tenants at Sufferance). According to its preamble, the Decree was intended to provide for the vesting of title to all land in Uganda IN TRUST for the people of Uganda. The Constitution of 1995 vested land in the citizens of Uganda as opposed to land vested in the State, as was the case with the Crown Land and consequently Public Land.
Therefore:
• Customary tenants on Public Land were empowered to own land occupied.
• Three quarters of land in Gulu falls under customary tenancy hence Communal Land Management.
• The Land Act 1998 favoured the Acholi customary land holding e g. communal cultivation, communal grazing, and settlements” (Langoya & Ochora Odoch, 2005).
Important land law:
“Section 92 of Uganda’s Land Act (1998, Cap. 227) states that “a person who…makes a false declaration in any manner relating to land” or “willfully and without the consent of the owner occupies land belonging to another person”… “commits an offence.” Notably, however, the Penal Code Act does not mention land-related crime or theft, robbery, or grabbing of immovable property” (Northern Uganda Land Platform, P: 6, 2014).
“Alternative dispute resolution (ADR), or ‘mediation’ as it is known, is not as technical, costly, or time-consuming as formal court processes, and aims to promote harmony among community members rather than naming a winner and a loser” (Northern Uganda Land Platform, P: 18, 2014).
“Migration characteristics:
Virtually, there are no refugee settlements in the district. However, large number of people in rural areas has moved to the forty six Internally Displaced Persons’ Camps and urban areas (RUM). It is noted that the Population in camps have risen from 291,000 people in 2001 to 438,765 people in 2004 and those in the urban centres from 38,297 people in 1991 to 113,144 people in 2002. Due to the same insurgency, there is also movement of people from Gulu district to the neighboring districts of Nebbi, Adjumani, Apac, Lira, Masindi and other Districts, not mentioned here” (Langoya & Ochora Odoch, 2005).
“Three criteria are found to be reliable indicators of bad faith. These reveal themselves as the ADR process unfolds, and include:” (…)”RIGHTS: Land rights of each party. These are determined by family ties, marital status, and transactions (gifts and sales)” (…)”INTENT: Parties’ demonstrated willingness to (not) respect these land rights. Usually evidenced by the presence of any “warning signs” and/or similar actions, body language, and statements” (…)”POWER: Parties’ perceived ability/opportunity to deprive opponent of land rights. This is context-specific, and may be assessed through probing” (Northern Uganda Land Platform, P: 7, 2014).
Some information on the Area Land Committee(ALC):
“A major point of breakdown apparently concerns the integrity of the Lands Administration itself. Although Area Land Committees are the “eyes and ears” of the District Land Board—thus vital to the process of land surveying and registration at the grassroots—these bodies remain under-facilitated, unsupervised, and unsurprisingly corrupt” (Northern Uganda Land Platform, P: 75, 2014).
Witnesses from the ALC:
”There’s no supervision of ALCs. So they go and do the work the way they want… because they’re human, sometimes they’re stubborn. On the basis of relationship… they can favor somebody. There may be a boundary dispute that was really not resolved – but in their report they say the dispute was ‘decided” (…)”“…a nightmare. The Kakira Sugar Works Limited overdemands money! Your file can be lost if you don’t pay them. I have to be very bold with these people, and tell applicants what really goes on. The corruption is highly coordinated, you can’t penetrate it. They look at you as if you are stupid if you don’t hand them extra money. I think the reason why no official fee structure exists has to do with the people behind private survey firms. If survey rates become fixed, then they lose business.” (…)”If I want to do something, you have the knowledge, I have the money. Money is very evil. However principled I am in my work, there’s some degree to which I will bend. All government offices are strained. No department says they have enough facilitation to do their work… We need to agitate, put it to the government that resources be looked at. Facilitating the ALCs alone will not solve the problem. Instead of centralizing the court, where people cannot afford travel costs (80-100km away), can we facilitate departments to do their work?” (Northern Uganda Land Platform, P: 75, 2014).
One set of background for Acholi land grab:
“To a number of locals in Northern Uganda, the issue of Customary Land Titles/ Certificates continues to evolve, and the rush to pilot this project has raised a number of questions and concerns about state involvement in land-related issues” (…)”In 1995, the Constitution of Uganda gave the right to own land to Ugandan citizens and any Ugandan could settle anywhere following due procedure. Following the passage of the 1995 Constitution the customary land tenure system was uplifted to the level of freehold tenure” (…)”As such, a clear definition and understanding of public land becomes imperative to securing access to land rights. One such example is the act of Amuru District Land Board allocating 40,000 hectares of land to Madhvani Group of Companies for sugar cane plantations. This allocation was made in the understanding that the land was public land. To community members this was a clear mismanagement by the land boards and manipulation of customary land rights by state institutions” (Otim, Ina & Cody, 2012)
“Lending credence to the perception of threat was highly public pressure from central government (including the President personally) for the opening up of Acholi land to investors, large-scale commercial farming, and other forms of ‘development’. From early 2007 this pressure was focused on giving land – originally 40,000 hectares, later reduced to 20,000 – in western most Amuru District to the Madhvani-owned Kakira Sugar Works Limited for a sugar cane plantation” (United Nation, 2013).
Main issues in Acholiland on land:
“Many Acholis oppose the project not only because Acholi cultural land is not to be sold, but also because many of the owners of that land are still in camps and, because of displacement due to war and the consequences, have not yet been able to return to their ancestral birthplace” (Kligerman, P:28, 2009). A World Bank report in July 2008 recommended a moratorium on land titles to investors in Acholiland until residents had residents had returned home from camps and people had been “sensitized” to land issues (Atkinson, R, 2008). The report also recommended that the government demonstrate its commitment to protecting natural resource rights (Atkinson, R, 2008); this is remarkable support for the Acholi people, particularly considering that the World Bank is one of major promoters of land privatization globally” (Kligerman, P: 29, 2009).
Insecurity when it comes to Land in Acholiland:
First one:
“Previous and on-going attempts by private individuals to acquire private interests in land which is perceived to be owned communally. Acholi leaders believe that Government is engaged in designs to help well placed and politically influential people from other parts of the country to access and enclose land in Acholi land. Common Property Resources are particularly targeted by individuals as well as government agencies” (Rugadya, P: 3, 2009).
Second one:
“Investor interest in the region; Pursuit of land access by large-scale commercial interests, speculators and grabbers was also causing tension particularly in the Acholi sub-region. The concern is that commercial agricultural interests will be cavalier in their treatment/understanding of land rights and land use issues. A number of highly publicized multiple attempts to acquire land in the sub-region presumably for investment and potential government development programmes, while some of these proposals may have been legitimate investment programmes to help re-establish peace and spur economic development activities in the region, the absence of a clear national policy and institutional framework for pursuing these initiatives has fueled the suspicion that “government” or investors as trying to usurp their land” (Rugadya, P: 4, 2009).
On Land Policy:
“Hostility towards government land policy is acute. MP Reagan Okumu asserts that there is a kind of ‘scramble’ for Northern Uganda, accompanied by a deliberate effort to deny Northern Uganda any development by scaring away investors. He says that because people in Northern Uganda are poor, whenever one flashes money around, they will sell their land at even low prices” (Otim & Mugisha, P:9, 2014).
Continuation on land and allocation of it:
“In Uganda, land is the single greatest resource for which a large majority of the population derives its livelihoods – because of the importance attached to land in all communities, conflicting interests in are unavoidable” (…)”Okoth-Ogendo describes land as a political resource which defines power relations between and among individuals, families and communities under established systems of governance” (Mabikke, P:6, 2011).
Allocation Part II:
“These land allocations dominate in the western area of Amuru district. These concessions have spurred major discussions on land grabbing in Acholi land. Central to these concerns has been highly public pressure from central government for opening up of Acholi land for “development” since early 2007 to allocate” (…)”land in Amuru district to the Madhvani Group for a large-scale sugar cane plantation. Reports from aggrieved Acholi Parliamentary Group (APG) – a group of Acholi parliamentarians accuse the GoU for assisting investors to grab land in northern Uganda. According to APG, the Central Government’s support for alienating land for commercial sugar cane farming in the north has been accompanied by powerful individuals gaining, or attempting to gain, private title to land that overwhelmingly belongs to communal landholding groups” (Mabikke, P:19-20, 2011).
On IDPs and Returnees:
“Some returnees allege that the government grabbed large tracts of their land while they were in the IDP camps and offered these tracts to private investors. For example, in March 2008, the Madhvani Group submitted an application to the Amura District Land Board for 20,000 ha of land near to the Nile River for a sugarcane plantation. The local government approved the application with an initial allocation of 10,000 ha for a period of 49 years. Some of this land is claimed by returnees. In November 2008, several parliamentarians from the Acholi sub-region filed an application in the High Court in Gulu and obtained an ex-parte (temporary) injunction against the Madhvani Group, Amuru District Land Board and other respondents for interfering or encroaching on the disputed land. In ensuing court hearings, the Amuru District Land Board was forbidden from issuing new leases on the disputed land until the hearing and determination of the main suit. As of June 2010, the suit is still pending in the High Court” (Veit, 2010).
“The Land Matrix database indicates that four large scale land deals amounting to 76,512 hectares were concluded in Uganda. In 1992, the government of Uganda signed an agreement with the Libyan government to allocate three large chunks of land, i.e. Bukaleba Beef Ranch (4,000 hectares), Aswa Ranch (46,000 hectares) and Maruzi Ranch (16, 376 hectares (Okello, 2006). Meanwhile, Egyptian government planned to establish grain farms on land totalling to 840,000 hectares (Kugelman and Levenstein, 2009) and Agri-SA holds about 170,000 hectares of arable land in Uganda (Mabikke, 2011). Similarly, the Ugandan government tried to allocate 7,100 hectares of land to the Sugar Corporation of Uganda Limited (SCOUL) to produce more sugar although the civil society resisted the allocation through massive demonstrations and appealing to donors to block the proposal (NAPE and Friends of the Earth International, 2012)” (Serwajja, 2012).
First information on Sugar factory in Amuru district:
“Box 1. Madhvani Amuru sugar works proposal:
In 2006 news began to emerge of a planned sugar works to be built by the Madhvani Group on 40,000 hectares of land in Amuru district. The proposal envisaged a joint venture between the Amuru Sugar Works (owned by the Madhvani family) and the government, with a projected cost of US$80 million (Shs 162 billion) and included construction of a factory, a power generation plant, a water treatment plant and reservoir, workshops, stores, fuel stations and administration blocks, staff housing and amenities including hospital and educational facilities, etc.34 Amuru Sugar Works anticipated employing up to 7,200 people (25 foreign and the rest local) directly at the factory and some 5,000 on outgrowers’ farms, providing a livelihood to around 70,000 people in total. Five villages to accommodate 200 farmers each were to be built in the nucleus estate. In these villages, farmers would benefit from education and health services, while extension and credit services, agricultural equipment for land clearing, ploughing and furrowing, and a development fund would be used to support outgrowers. According to the proposal, 200km of road network would be built on both the nucleus estate and surrounding areas.5 Despite the proposed benefits of the project, a political storm over the proposal quickly grew, with the Acholi Parliamentary Group (APG), under the leadership of MP Hon Livingstone Okello-Okello, arguing that the investment should not proceed until all internally displaced persons (IDPs) had safely returned and that the required land of 40,000 hectares was too big to be given out for a single investor, since the population was growing fast and in the process of returning from camps.6 Madhvani Group representatives, accompanied by President Yoweri Museveni, visited the north at the end of 2007 in a bid to gain support for the project. Museveni asked the Acholi paramount chief, His Royal Highness Lawii Rwodi David Onen Acana II, to undertake a consultative process by setting up a committee to assess the land in question, research the sugar industry and gather community views. The proposal has subsequently been reduced to 20,000 hectares for the nucleus estate and 10,000 for outgrowers. In July 2008 newspapers reported that during a meeting organised by the APG, residents resolved unanimously not to give their land to any investors. Most recently, following dissatisfaction regarding the ruling of the Amuru Land Board in favour of the Madhvani Group, a group of residents from Amuru district, led by MP Hon Simon Oyet, secured a court order stopping any transactions on land in the district, with the deputy paramount chief of the Acholi, Rwot Otinga Otto, calling on clan leaders and cultural heads to resist giving land to Madhvani if they are not consulted, saying: ‘Just rise up against whoever gives away land without your consent’” (International Alert, 2009).
The background to deal:
“The first public indication of Madhvani’s interest in a sugar cane plantation in the ‘north’s central part’ of Uganda – that is, Acholi – came in a New Year’s Day New Vision Business article, ‘Madhvani to set up second sugar factory’ (1 January 2007) . By July, this interest had become specifically identified as a 40,000 hectare tract of land in Amuru District – see, for example, two New Vision articles from 30 July 2007, one from the Local North section, ‘Acholi MPs asked to support sugar factory’, the other an Opinion piece by Gulu District
Chairman, Norbert Mao, ‘Sugar is sweet but Acholi cannot afford a raw deal’. It is important to note that the land sought by Madhvani is situated in an area cleared of people by the colonial government almost a hundred years ago and made a game reserve. But evidence of various Acholi group’s historical claims to customary land in the area, and its continued use through most of the 20th century for hunting by groups with recognized customary rights is extensive. It is also worth noting that this is also a part of Amuru where preliminary research indicates possible oil reserves, and where Government has given out licenses for oil exploration – as confirmed in a letter dd. 4 September 2008 from Daudi Migereko, the Minister of Energy and Mineral Development, in response to a request for information on the matter by J.J. Okello-Okello, Chairman of the Acholi Parliamentary Group” (United Nation, 2013).
“The project entails acquisition of 40,000 hectares of land in perpetuity and at zero cost, implicitly the people of Lakang are meant to give away the land for development of the sugar industry. Half of the land, 20,000 hectares, will be used to establish a central business district (nucleus estate) of the factory that will entirely be under the management of the Madhvani Group and the remaining land will leased to the communities to grow sugarcane under the out-grower scheme. At the same time, the Madhvani Group will acquire a title deed to the land in question (40,000 hectares) in a quest to secure additional funding of about US$50 million from the African Development Bank” (Serwajja, 2012).
“A review of the feasibility study report for proposed sugar project in Amuru district revealed that the area was preferred because of availability of permanent source of water which would provide water for irrigation and proposed factory. The proposed project is located about 6 kms is near the river Nile. Other suitable conditions for sugar cane growing identified included suitable topography with undulating plains, reliable rainfall of 1029 mm annually and fertile soils (sandy clay loam and loam) and availability of spear type of grass which is easy to clear (Madhivani Group March 2007). For the investors acquiring land from the UIA, they had to ensure that the land had no conflicts. For investors who acquired land from the UIA and DLBs, there are guidelines that prescribe all the processes for acquisition” (…)”In Amuru district, an investor had fenced off land cutting off adjustment villages from a health centre and a weekly market. Similarly, in the Kaweeri coffee plantation, the community complained about restrictions of movement through the plantation to access their villages. Since part of the process of land acquisition does not require understanding a gender analysis, its implications on women and men will not be understood and therefore such scales and effects will not inform planned actions“(Kanyesigye, P:13 & 15, 2014).
On the 11th December 2014 Attorney General Peter Nyombi wrote this in a letter:
“In a cabinet meeting presided over by H.E. the President, while briefing cabinet on the progress made so far by regarding the above project you informed cabinet that the survey of the project land would be done after the by-elections in Amuru District” (…)”Could you therefore have the land surveyed and the occupants of the same established and their property on the same recorded and valued so that the project can go ahead” (Nyombi, 2014).
Two other cases:
First case:
“According to the minister’s letter dated 7th January 2008, Major General Julius Oketa had applied to be issued with a certificate of title for approximately 10,000 hectares of land located in Amuru district for a sugar industry. The letter shows that there was no functional
Area Land Committees (ALC) in place which would inspect the land before issuing the title” (Mabikke, P: 20, 2011)
Second Case:
“A similar case of alleged land grabbing is cited in the petition presented to the Speaker of the Parliament, filed by Hon. Okello-Okello John Livingstone – chairman APG. Okello reported several attempts of land grabbing involving senior government officials in northern Uganda.
In 1992 the GoU signed a protocol with the Government of Libya giving away the following large chunks of land namely;
• Bukaleba Beef Ranch 4,000 hectares,
• Aswa Ranch 46,000 hectares
• Maruzi Ranch 16,376 hectares” (Mabikke, P:20, 2011).
A third case:
“The case of land in Apaa Village (Amuru District) illustrates the suspicions of local people concerning the acquisition of large tracts of land. In 2005, when people were still living in the camps, land was given to Bruce Martin from South Africa who was investing in game reserves for sports hunting. When resistance from the community intensified, it is claimed that the government changed tactics and asked the neighbouring district of Adjumani to contest ownership and claim that this land actually lies within Adjumani District. The Adjumani District authorities then passed a council resolution giving the land away to the ‘investor’. Some participants in this research argued that the boundaries between the two districts of Adjumani and Acholi are clear, and that some district politicians are manufacturing the boundary conflict. During an interview with the District Chairperson of Adjumani, he showed a map of the area in dispute claiming the area belongs to Adjumani District” (Otim & Mugisha, P: 8, 2014).
Fourth Case:

On the 9th of September of 2015 the police arrested the Amuru MP Hon Gilbert Olanya. Residents has reacted to buy of land and grabbing of Apaa village. The Villages and the MP was forced into the Police car even with the NTV camera crew in the place.
The TDA press release said this: “Three people are now confirmed dead by sources in Apa. Several people suffered grave injuries and are being treated at Amuru health centre. The Member of Parliament Gilbert Olanya was arrested and is believed to be detained in Masindi police station” (Minbane, 2015).
Afterthought:
I think I have said enough. If you’re not enlighten and gotten more clear information on the subject and the issue that these people are living through, then I am sure you should read more reports and dwell on the matter at hand. It is a sensitive matter that by my reckoning hasn’t been dealt in the best way. The arrangement and deals has been beneficiary for the government and state institutions, but not in favor of the demand in the districts. Also it has not put into an account what the local area needs or settlement of the IDPs after the long war in the war-torn area of the Northern Uganda. So many people are still in tents in the camps instead of building themselves into a stabile life. That is really growing prosperity and not just short and quick bucks with the sale of big areas located to foreign and not local merchants. Also fertile land is being sold to either facilitate a giant sugar-factory or as another big time deal to become hunting grounds instead of a place where the citizens can live and earn a livelihood. When this kind of actions happen from the government officials in Kampala and not directly with due diligence locally, then there will be frictions and anger towards the men who gave the businessmen the opportunity to occupy the lands. There are already as seen in many of the reports many smaller incidents between neighbors and family members to allocate lands in the Amuru and Adjumani district. Therefore this will be a sensitive issue that will not be over, especially not over until the next sunset. There will be many moons and even more hot air before a certainty is there. Especially when the Government overrules and sells the land without doing proper procedure and allocations, without checking the status of the area as it unfolds. They the government officials are just pocketing money quick and then send police to get rid of those who live there. At the same time having citizens in the camps as IDPs without a possibility to land and harvest, to find work to sustain them and live. That should have been the priority and not the businessmen from a far. Which is also the main reason why the locals reacts that strongly towards this land grabs and how they feel overrun and not listen to by the powers to be. In this case of the Government of Uganda and their LDC and certain ministries that have put the allocations into effect. An in this particular cases might put the quick monies before the additional and usually most important feature of any government institutions the people and the citizens before the contracts of selling the lands. Henceforth it’s understandable why people react and demonstrate when they feel wronged by the ones that supposed to serve you and secure security and care so you earn your livelihood. And that shouldn’t be too much to ask from the NRM-Regime, though it seems more likely that the big sums of monies matter more than the public reactions at this present time. Also that the continuation of disfranchising the northern districts of Uganda continues, especially with the Oil findings in Western/North Western Uganda – Bunyoro while Amuru and Adjumani will lose more to that area than even before. Peace.
Reference:
Kanyesigye, Juliet – ‘Hearing the other Voice: Investor perspectives on Protection of Women’s Land Rights in Large scale Land Acquisition in Uganda’, Submitted to the World Bank Conference 2014 on Land and Poverty 23-27th 2015, Washington D.C.
Kligerman, Nicole – ‘Alienation in Acholiland: War, Privatization and Land Displacement in Northern Uganda (2009)
Langoya & Ochora Odoch, Walter – Gulu District Local Government – ‘District State of Enviroment Report (2005) – Gulu, Uganda
Mabikke, Samuel B – ‘Escalating Land Grabbing In Post-conflict Regions of
Northern Uganda: A Need for Strengthening Good Land Governance in Acholi Region’ (08-11.04.2011) – Paper presented at the International Conference on Global Land Grabbing, University of Sussex
Minbane – ‘Press Release: TDA condems the violent and forceful eviction in Apa Uganda’ (08.09.2015) link: https://minbane.wordpress.com/2015/09/08/press-release-a-condemns-the-violent-and-forceful-eviction-in-apa-uganda-08-09-2015/
Northern Uganda Land Platform – ‘Power & Vulnerability in land Dispute Resolution – Evaluating Responses to Domestic Land Grabbing in Northern Uganda’ (Lira, May, 2014)
Nyombi, Peter – ADM/7/168/01 – ‘Re: Land for the Sugar Project in Amuru District’ to Hon. Daudi Migereko, Minister of Lands, Housing and Urban Development, Kampala
International Alert – ‘Contributing to a Peace Economy in Northern Uganda:
A Guide for Investors’ (06.2009)
Rugadya, Margaret A. – ‘UNVEILING GENDER, LAND AND PROPERTY RIGHTS IN
POST-CONFLICT NORTHERN UGANDA’ (November, 2008)
Serwajja, Eric – ‘The Quest for Development Through Dispossession: Examining Amuru Sugar Works in Lakang-Amuru District of Northern Uganda’ (17-19.10 2012) – Land Deal Politics Initiative (LDPI)
Otim, Denis Barnabas, Ina, Jahn & Cody, Emily – Refugee Law Project MUK – ‘Conflict Watch: “Land and Investment” – Balancing Local and Investor Interest’ (August 2012)
Otim, David & Mugisha, Police Charles – Saferworld: ‘Beyond the reach of the hoe: The struggle for land and minerals in Northern Uganda’ (April 2014)
United Nation – ‘LAND CONFLICT MONITORING and MAPPING TOOL for the Acholi Sub-region – Final Report March 2013’
Veit, Peter – ‘Focus on LAND in Africa – Breif: CONFLICT, DISPLACEMENT, AND LAND RIGHTS IN UGANDA: Uganda’ (December, 2010)
Press Statement – #Battleground Tshwane: ANC’s violent disruption of the launch of DA’s Mayoral Campaign (24.10.2015)
Yesterday ANC supporters violently disrupted the DA’s preparation for the launch of the DA’s Tshwane Mayoral Campaign in Solomon Mahlangu Square.
Late in the afternoon ANC supporters physically attacked DA supporters and staff members, who have subsequently been taken to hospital for treatment.
This grouping had – prior to the attack on the DA – attended a function hosted by the Mayor of Tshwane, who is as a result culpable in these events.
The ANC’s violent actions yesterday are the clearest indication yet that they can lose Tshwane and that the DA can win in next year’s local government election.
As a result of this violent attack, much of the equipment that was to be used at the launch was destroyed. For practical reasons, we will therefore be launching Solly Msimanga’s Campaign for Mayor of Tshwane on Sunday, 25 October 2015.
DA Leader, Mmusi Maimane, DA Gauteng Leader, John Moodey, and DA Candidate for Mayor of Tshwane, Solly Msimanga, will today brief the media on the details of the violence that took place; the criminal charges and multi-million rand civil actions that we will pursue; the complaint which has been made with the Independent Electoral Commission; and the formal Complaint which has been laid with the Mayor of Tshwane.
The DA will not be intimidated by the ANC’s violence. We remain steadfast to bring the change that Tshwane so desperately needs.
President Zuma – “If you don’t invest in the ANC, your business is in danger”
Well, with the Hitachi deal in mind the recent comments and reports are scary. That the President Zuma stands and asks for pledges because that is good for business, that sounds like “buy-a-politician-program”. That is something that isn’t democratic or has the values that the ANC supposed to stand for. If looking at history and Mbeki with the famous arms-deals was bad enough. This will open the floodgates for more. Just read the comments for his speech yesterday!
Jacob Zuma said this yesterday:
““I always say to business people, if you support the ANC, you are investing very wisely. If you don’t invest in the ANC, your business is in danger. Tonight is [not only about the NGC] it is also to remind you that the ANC is a non-profit organization. t [the ANC] makes no profit. But it is very huge. It is the biggest organization in the country so just remember that this organization that you are associated with is a non-profit making organization which means that it is looking at you with a very interesting eye. Remember this organization because it has created an environment which is conducive for everything to be done. Let us work together, that is why more than ever before, you need to support the ruling party because it has very good policies and programmes. Remember that when you donate. We need you now more than any other time now. When the treasurer general knocks at your door open your door widely. If he says support the ANC, take out your cheque-book and tell him to write six figures]” (Khoza, 2015).
And if that wasn’t enough… you have the price for the people attending the speech yesterday!
While we’re talking about ANC and monies those need and wish for more support.
Another report told this:
“South Africa’s elite forked out anything between R100,000 to R1.5 million just for dinner with President Jacob Zuma on the eve of the National General Council” (New24Wire, 2015).
If you are as me sadden by this reports and quotes from a President of the great South African nation. Then you’re not alone, I am sure more people are appalled by it. They just don’t express it. ANC has a heritage and it’s been destroyed from within. The destruction and dismantling of the values and conduct of the ANC party is a strange vision to see from a far. Because they have the ability and opportunity to actually do the right thing, but power corrupts and finding the ques to it is easy and when you find the faucets of gold, it’s hard to stop it. Easier to continue to pour the gold into the coffers then to actually use that to the people and constituencies that the ANC represent. That is something that nobody likes from a far to see and also with sorrow. Peace.
Reference:
News24Wire – ‘R1.5 million for dinner with Jacob Zuma’ (09.10.2015) link: http://businesstech.co.za/news/general/100754/r1-5-million-for-dinner-with-jacob-zuma/
Khoza, Amanda – ‘Investing in ANC a wise move – Zuma’ (09.10.2015) link: http://www.news24.com/SouthAfrica/News/Investing-in-ANC-a-wise-move-Zuma-20151009
Recent Corruption cases: “It was part of being an insider but it was a very corrupting business”
“He did not care for the lying at first. He hated it. Then later he had come to like it. It was part of being an insider but it was a very corrupting business.” – Ernest Hemingway, For Whom the Bell Tolls
You who follow my blog know I does this once in a while to prove that corruption isn’t a one area thing, it’s international and got no borders. Always somebody who want to pocket some easy and quick money, that is because it’s easier then actually work for the money in the end. This time around there is a few Island cases two cases on the Dominican Island and one that origins from Mauritius. The World Bank president is addressing taxation and how bad practices can destroy economic situation in low-developed countries. In South Africa there been a shady deal between Statehouse and the Hitachi, the ANC are continuing to do this and the old cases that has hurt the regime like he army deal in not to distance past. And a UN environmental negotiator who has a few counts of tax fraud so that the United Nation has even some people who got questionable actions. No place in the world you can walk anymore without insider, but it was a very corrupting business. Seems like a worry from Dominican Republic to the New York UN office. Take a quick look!
In the Dominican Republic:
“The alleged bagman in the State Works Supervisory Engineers Office (OISOE) on Monday said the money provided to contractors to conclude construction of schools came from the beleaguered agency´s technical director, Jose Florencio” (…)”Alejo Perez said the money was sometimes handed out at the schools or at OISOE headquarters, in presence of de los Santos´ and the engineer in charge of the work. “These payments were sometimes made in cash or checks.” (…)”When asked what de los Santos did with the money he gave to Florencio, Alejo said: “They gave it to the engineers on loan to finish the work, which was withdrawn from a line of credit” (Dominican Today, 2015).
There is even another recent case on the island:
“The embezzlement case against ruling PLD party and senator Felix Bautista has unleashed a crisis of confidence among Supreme Court justices Frank Soto and Miriam German, who in a letter dated September 21called her colleague unfair, disrespectful and abusive” (…)”The Supreme Court on September 22 set a hearing for Oct. 21 to hand down the ruling on the prosecution´s appeal against Bautista´s acquittal by a lower court” (Dominican Today, 2015).
More trouble in another Island Paradise:
“Senior figures from the island’s new government visited Britain in the summer to lobby for a National Crime Agency (NCA) investigation into the 68-year-old British passport holder for alleged corruption in Mauritius” (…)”The NCA is believed to have contacted the island authorities for details of credit cards found in Mr Ramgoolam’s safe that included two Centurion American Express cards given only to high-spenders. Mr Rangoolam, who owns a Rolls-Royce with a personalised number plate in London, has vowed to open his accounts to independent scrutiny in an attempt to persuade the NCA that he owns no property in Britain and only legitimately amassed savings. Banks in the UK shut down his accounts after the arrest in February” (…)”Any British investigation into Mr Ramgoolam would fit the profile of the more than 20 high-profile politicians being targeted by the National Crime Agency’s International Corruption Unit (ICU)” (Fellstrom & Peachey, 2015).
Statement from the World Bank president Jim Yong Kim:
“Some companies use elaborate strategies to not pay taxes in countries in which they work, a form of corruption that hurts the poor” (…)”We reject “trickle-down” notions that assume that any undifferentiated growth permeates and fortifies the soil and everything starts to bloom, even for the poor” (…)”Developing countries must also construct more equitable, efficient and transparent tax collection systems. IMF Managing Director Christine Lagarde and I pledged a few months ago that our organizations will do all we can to help countries collect more taxes more fairly” (Tax Justice Network, 2015).
In South Africa:
A deal between Hitachi Ltd and the Government of South Africa:
“SUMMARY OF ALLEGATIONS
Hitachi allegedly sold a 25-percent stake in a newly created South African subsidiary to Chancellor, a local South African company serving as a front for the ANC, South Africa’s ruling political party. This arrangement allegedly gave Chancellor and the ANC the ability to share in the profits from any power station contracts that Hitachi secured. During the bidding process, Hitachi was allegedly aware that Chancellor was a funding vehicle for the ANC but nevertheless continued to partner with Chancellor and allegedly encouraged Chancellor’s use of its political influence to help obtain the government contracts” (…)”Hitachi was ultimately awarded two contracts to build Medupi and Kusile power stations in South Africa and Hitachi’s lax internal control environment allegedly enabled its subsidiary to pay Chancellor approximately USD 5 million in “dividends” based on profits derived from the contracts. Through a separate, undisclosed arrangement, Hitachi allegedly paid Chancellor an additional USD 1 million in “success fees” that were inaccurately booked as consulting fees and other legitimate payments without appropriate documentation” (Trace International, 2015).
RATIO OF IMPROPER PAYMENTS TO BUSINESS ADVANTAGE
| Approximate Alleged Payments to Foreign Officials | Business Advantage Allegedly Obtained |
| USD 5 million in “dividends” based on profits derived from the contracts & USD 1 million in “success fees” inaccurately recorded as consulting fees | Awarded of two contracts, worth approximately USD 5.6 billion, to build power stations in South Africa |
(Trace International, 2015).
“HOW CONDUCT WAS DISCOVERED
On 10 November 2006, the Mail & Guardian published an article, entitled “the ANC’s New Funding Front,” exposing Chancellor as a business front set up by the ANC to seek profit on its behalf, generally by acquiring “empowerment” stakes in a wide range of businesses seeking state procurement” (…)”On 19 January 2007, Financial Mail published an article, entitled “Finacing the ANC, Untold millions,” quoting the admission by Kgalema Motlanthe, ANC Secretary General, that Chancellor was an “ANC vehicle” that existed for the sole purpose of funding the ANC” (Trace International, 2015).
A little more of the case:
“The story of how Hitachi bought political influence, in order to win a $5.6 billion power station contract, calls into question not only the integrity of a massive company with a global reputation, but also the integrity of the South African government” (…)”A $19m fine for a company of Hitachi’s size, when they have won a $5.6 billion tender, is laughable and certainly does not help with law enforcement efforts to stamp out corruption” (Kenney, 2015).
In the U.S.:
Chicago the place of Al Capone and other villains of old there are new corrupt faces:
“Charges that Byrd-Bennett steered more than $23 million in work to Supes and Synesi Associates “in expectation of hundreds of thousands of dollars in bribes and kickbacks,” according to Fardon’s office” (…)”Byrd-Bennett, 66, faces 15 counts of mail fraud and five of wire fraud. Solomon, 47, faces those charges, plus alleged bribery and conspiracy, as does Vranas, 34” (…)”Her attorney confirmed that plan in a brief statement:”Barbara Byrd-Bennett will plead guilty to charges in the indictment,” Michael Scudder, a partner in the Chicago office of law firm Skadden Arps Slate Meagher & Flom,” said. “As part of accepting full responsibility for her conduct, she will continue to cooperate with the government, including testifying truthfully if called upon to do so” (Hinz, 2015).
Even in the UN:
Who knew that a negotiator in the UN for clean-energy and environmental issues has been getting accused on 5 counts on Tax fraud, here are brief information on the case.”A former president of the U.N. General Assembly “sold himself and the global institution he led” by allegedly pocketing more than $1 million in bribes to finance a luxury spending spree, according to a federal prosecutor” (…)”Ashe is accused of underreporting his income by more than $1.2 million, prosecutors said” (…)”ASHE also then began soliciting additional payments from LORENZO to pay for the installation of a private basketball court at ASHE’s house in Westchester County. In addition to agreeing to pay for ASHE’s family vacation and basketball court, LORENZO began paying ASHE’s wife, as a “climate change consultant” for NGO-1, in the amount of $2,500 per month” (Greenfield, 2015).
Afterthought:
If this wasn’t interesting then something must be missing. The corruptness is worrying that now even cracks in the UN system, that the World Bank President talks like he does is natural, that their been shady deals in South Africa isn’t new anymore; More like how much the deals are between the Government of South Africa between a Certain Company and then which MP or Minister who earns extra for it. The Mauritius clear-out is happening with a former PM having issues while the former President is behind bars, something is fishy on that island. Another island has two brief and new cases of corruption and that is on the Dominican Island. But the whole total of money discussed in these matters is big and terrifying for the state of the places and people involved in the matter. Like the quote from Hemmingway, I am sure that the persons are over time more easily doing the corrupt business and actions. Because over time it got easy and made the persons feels like insider. Though it still not right! Thieving and stealing is the same, and corruption is a malpractice and a form of stealing money. Peace.
Reference:
Dominican Today – ‘Suicide uncovers widespread graft at notorious agency’ (06.10.2015) link: http://www.dominicantoday.com/dr/local/2015/10/6/56703/Suicide-uncovers-widespread-graft-at-notorious-agency
Dominican Today – ‘Supreme Court justices bicker over embezzlement case’ (05.10.2015) link: http://www.dominicantoday.com/dr/local/2015/10/5/56695/Supreme-Court-justices-bicker-over-embezzlement-case
Kenney, Martin – ‘Hitachi’s South Africa $19m bribery fine’ (02.10.2015) link: http://www.martinkenney.com/articles/hitachi-south-africa-19m-bribery-fine/
Fellstrom, Carl & Peachey Paul – ‘Ex-Prime Minister of Mauritius under investigation by UK anti-corruption unit’ (04.10.2015) link: http://www.independent.co.uk/news/uk/crime/ex-prime-minister-of-mauritius-under-investigation-by-uk-anti-corruption-unit-a6679111.html
Greenfield, Daniel – ‘MAJOR UN CLIMATE ACCORD, AGENDA 21 NEGOTIATOR ARRESTED FOR CORRUPTION’ (07.10.2015) link: https://www.frontpagemag.com/point/260376/major-un-climate-accord-agenda-21-negotiator-daniel-greenfield
Hinz, Greg – ‘Ex-CPS chief Byrd-Bennett indicted on federal corruption charges’ (08.10.2015) link: http://www.chicagobusiness.com/article/20151008/BLOGS02/151009840/ex-cps-chief-byrd-bennett-indicted-on-federal-corruption-charges
Trace International – ‘Trace Compendium – Hitachi Ltd’ (28.09.2015) link: https://www.traceinternational2.org/compendium/view.asp?id=686&utm_source=TRACE+Compendium+Alert%3A+Hitachi+Ltd.+9.28.15&utm_campaign=COMPENDIUM+ALERT%3A+Hitachi+Ltd.+9.28.15&utm_medium=email
Tax Justice Network – ‘World Bank president: corporate tax dodging ‘a form of corruption’’ (02.10.2015) link: http://www.taxjustice.net/2015/10/02/world-bank-president-corporate-tax-dodging-a-form-of-corruption/
Zwane’s Appointment as Mining Minister is more Zuma Feudalism – Bokamoso by Mmusi Maimane
Press Release: Africa Faces the Challenge of Sustaining Growth amid Weak Global Conditions (05.10.2015)
WASHINGTON, October 5, 2015— Sub-Saharan Africa countries are continuing to grow, albeit at a slower pace, due to a more challenging economic environment. Growth will slow in 2015 to 3.7 percent from 4.6 percent in 2014, reaching the lowest growth rate since 2009, according to new World Bank projections.
These latest figures are outlined in the World Bank’s new Africa’s Pulse, the twice-yearly analysis of economic trends and the latest data on the continent. The 2015 forecast remains below the robust 6.5 percent growth in GDP which the region sustained in 2003-2008, and drags below the 4.5 percent growth following the global financial crisis in 2009-2014. Overall, growth in the region is projected to pick up to 4.4 percent in 2016, and further strengthen to 4.8 percent in 2017.
Sharp drops in the price of oil and other commodities have brought on the recent weakness in growth. Other external factors such as China’s economic slowdown and tightening global financial conditions weigh on Africa’s economic performance, according to Africa’s Pulse. Compounding these factors, bottlenecks in supplying electricity in many African countries hampered economic growth in 2015.
“The end of the commodity super-cycle poses an opportunity for African countries to reinvigorate their reform efforts and thereby transform their economies and diversify sources of growth. Implementing the right policies to boost agricultural productivity, and reduce electricity costs while expanding access, will improve competitiveness and support the growth of light manufacturing,” says Makhtar Diop, World Bank Vice President for Africa.
According to Africa’s Pulse, several countries are continuing to post robust growth. Cote d’Ivoire, Ethiopia, Mozambique, Rwanda and Tanzania are expected to sustain growth at around 7 percent or more per year in 2015-17, spurred by investments in energy and transport, consumer spending and investment in the natural resources sector.
Gains in Poverty Reduction
Africa’s Pulse found that progress in reducing income poverty in Sub-Saharan Africa has been occurring faster than previously thought. According to World Bank estimates poverty in Africa declined from 56 percent in 1990 to 43 percent in 2012. At the same time, Africa’s population saw progress in all dimensions of well-being, particularly in health (maternal mortality, under-5 mortality) and primary school enrollment, where the gender gap shrank.
Yet African countries continue to face a stubbornly high birth rate, which has limited the impact of the past two decades of sustained economic growth on reducing the overall number of poor. Countries still lag behind those in other regions in making progress on the Millennium Development Goals (MDG). For example, Africa will not meet the MDG of halving the share of population living in poverty between 1990 and 2015.
Weaker Commodity Prices
Sub-Saharan Africa’s rich natural resources have made it a net exporter of fuel, minerals and metals, and agricultural commodities. These commodities account for nearly three-fourths of the region’s goods exports. Robust supplies and lower global demand have accounted for the decline of commodity prices across the board. For instance, the drop in the prices of natural gas, iron ore, and coffee exceeded 25 percent since June 2014, according to the report.
Africa’s Pulse notes that overall decline in growth in the region is nuanced and the factors hampering growth vary among countries. In the region’s commodity exporters—especially oil-producers such as Angola, Republic of Congo, Equatorial Guinea, and Nigeria, as well as producers of minerals and metals such as Botswana and Mauritania, the drop in prices is negatively affecting growth. In Ghana, South Africa, and Zambia, domestic factors such as electricity supply constraints are further stemming growth. In Burundi and South Sudan threats from political instability and social tensions are taking an economic and social toll.
Fiscal deficits across the region are now larger than they were at the onset of the global financial crisis, the report finds. Rising wage bills and lower revenues, especially among oil-producers, led to a widening of fiscal deficits. In some countries, the deficit was driven by large infrastructure expenditures. Reflecting the widening fiscal deficits in the region, government debt continued to rise in many countries. While debt-to-GDP ratios appear to be manageable in most countries, a few countries are seeing a worrisome jump in this ratio.
“The dramatic, ongoing drop in commodity prices has put pressure on rising fiscal deficits, adding to the challenge in countries with depleted policy buffers,” says Punam Chuhan-Pole, Acting Chief Economist, World Bank Africa and the report’s author. “To withstand new shocks, governments in the region should improve the efficiency of public expenditures, such as prioritizing key investments, and strengthen tax administration to create fiscal space in their budgets.”
Moving Forward
Growth in Sub-Saharan Africa will be repeatedly tested as new shocks occur in the global economic environment, underscoring the need for Governments to embark on structural reforms to alleviate domestic impediments to growth, the report notes. Investments in new energy capacity, attention to drought and its effects on hydropower, reform of state-owned distribution companies, and renewed focus on encouraging private investment will help build resiliency in the power sector. Governments can boost revenues through taxes and improved tax compliance. Complementing these efforts, governments can improve the efficiency of public expenditures to create fiscal space in their budget.




















