 |
| Jim Kim, World Bank President |
Tax avoidance loopholes for EU-based multinationals
introduced by the World Bank and the International Monetary Fund (IMF) are said
to be costing African countries double the amount they receive in foreign aid.
It is killing us, you cannot now explain poverty in Africa
without this and this is the story that has been supressed for so long, Zitto
Kabwe, an MP who is also chairman of the public accounts committee in Tanzania,
told this website on Wednesday (30 October)
He said Tanzania was forced in the late 1990s by the World
Bank and the IMF to sign tax rules and tax laws which are favourable to
investors, while depriving it of much needed revenue that would help wean it
off foreign aid.
Kabwe said EU and other Western multinationals, including a
Tanzanian state owned company, use tax havens and other illicit schemes to scam
the countries of the continent out of around $50 billion every year.
By comparison, they receive $30 billion in foreign direct
aid.
Almost twice the amount of foreign aid that Africa receives
is getting out of Africa through illicit financial transfer, through tax
avoidance and the likes, he said.
A 2011 IMF report on Tanzania, he noted, noted the country is
unable to collect taxes due by foreign companies.
They forgot that they [the IMF] are the ones who provided
consultants for us to enact laws that are favourable to investments, he said.
He noted that the IMF and the World Bank advised African
states to design policies and laws which multinational corporations are abusing
to avoid paying taxes in our countries.
Both institutions, he said, in a twist of events, are now
offering advice to stop the abuse.
The IMF, contacted for this story, did not respond to the
allegations.
But a possible solution, said Kabwe, is putting an end to
double taxation arrangements used by multinationals who funnel their profits
into tax havens like the Isle of Man or the British Virgin Islands.
Mining and telecommunications are the two largest sectors in
Tanzania where EU-based companies exploit the loopholes for their own benefit.
Almost all the mining operations in Tanzania are from Europe,
he said.
He noted that African Barrick Gold, which is registered in
London, operates the most mines. Another, AngloGold Ashanti, is registered in
South Africa but with subsidiaries registered in offshore tax havens, he added.
Three major mobile companies operate in Tanzania. One is
based in Dubai, itself a tax haven, and one each registered in the Netherlands
and in the UK, he noted.
He said big oil and gas companies like Statoil, Ophir, Shell,
and Exxon Mobil are also in Tanzania, but no evidence has surfaced that they
are using tax havens, except for the UK-owned PanAfrica Energy and British Gas.
PanAfrica Energy operate from the Cayman Islands and
Mauritius and this is a British government-owned company using tax havens to bring
their FDI [foreign direct investments] to Tanzania, he said.
He noted that the problem is manifold because a Tanzanian
state-owned company was itself using a tax haven in Mauritius to avoid filling
its own national coffers.
Chinese companies working in Africa, by comparison he said,
are more transparent on taxes and pay their dues though they tend to scam on
public procurement.
Kabwe, along with a handful of other delegates from Africa
organised through the Brussels-based development NGO Eurodad, is set to discuss
the issue with the European Commission on Thursday (31 October).
Savoir Mwambwa, from the Nairobi-based Tax Justice Network,
said ending the scams orchestrated by EU-based companies would make Africa less
dependent on aid.
He said Zambia Sugar, a subsidiary of the British Associated
Foods company, would inflate their wage bills by making payments to a ghost
branch in Mauritius.
One common thing about all these companies, if you look at
all the instruments they use, they all have businesses in one form or another
in tax havens, said Mwambwa.
The EU, for its part, has proposed reforms on accountancy and
transparency directives.
The reforms, backed by the European Parliament in June, would
require companies in the extractive and logging sector to publish an annual
report disclosing the details of tax, bonuses and other payments made to
governments for every project they operate over a $100,000 threshold.
The move drew praise from Oxfam, which said it would help
fight tax dodging by EU companies in the developing world.
Editorial
Congratulation
President
John Dramani Mahama deserves commendation for his very quick decision to
terminate the appointment of Victoria Hammer, the Deputy Minister of
Communications.
Within
the last eight months of her appointment Ms Hammer has failed to demonstrate
the maturity which is so vital for the performance of her duties.
Her lastest outburst captured in a secret
recording is perhaps the clearest testimony that she has not been sufficiently
well groomed for her appointment.
The
Insight wants to hope that President Mahama will not end with the removal of Ms
Hammer.
He
needs to take drastic action against all his appointees whose performance falls
below acceptable standards.
This
must be the beginning of a major reshuffle of the Government machinery.
Too
many top level officials are not doing well and it is time to take action.
VANDALISM
By
Christian Kpesese
A
group of men calling themselves Taskforce members of the Tema Development
Corporation (TDC) have vandalizes Affordable Houses being built at Kpone in the
Greater Accra Region.
This
happened under the pretext of ejecting squatters.
In
a letter to the Minister for Water Resources Works and Housing, one of the
contractors working on the project, the Managing Director of MARTGAZA LTD Mr
Martin Ganyo-Nukpezah complained bitterly about the effects of the destruction
of the property especially block type (A) consisting of 24 flats under his
jurisdiction.
The
destruction of property he noted will cost financial loss to government in
replacing the items vandalized by the taskforce.
The action of the taskforce has also exposed
the building materials kept in the rooms of the flat by the contractor to
miscreants to steal.
The
Contractor has thus distanced his company from liability for any destruction
caused.
He
explained that, he as the contractor responsible for the construction of the
Type (A) FLAT he was not informed by government of the TDC`s takeover of the
project hence should not be hold responsible for the vandalism.
Damage
to the structure which is about 85% completed since December, 2008 is said to
be considerable.
According
to him, the project was still under his care even though it has been on hold
since 2008 due to lack of funds for its completion.
Mr
Ganyo- Nukpezah said he had since then reported the vandalism to the Kpone
Divisional Police.
 |
| President of Cuba, Raul Castro |
By Oscar Bravo Fong
As is the case with Nigeria, Equatorial Guinea and Gabon,
Cuba is collaborating with Angola in combating vectors such as mosquitoes, the
carriers of malaria and dengue, among other diseases.
Work underway in combating malaria in Africa, which includes
the construction of biolarvicide factories in the region, is becoming
increasingly important, given that thousands of people die every year from
vector transmitted diseases which can be avoided.
Malaria particularly affects children under five years of age
and pregnant women, many of whom are living in poor communities.
This panorama is compounded by the fact that that, from the
economic point of view, malaria provokes enormous losses on the continent, with
a considerable reduction in labor productivity.
To get some idea of the impact of malaria, suffice it to say
that 13% of all deaths in Ghana, West Africa, are from this disease, according
to health authorities.
Anti-Vector
Program In Angola Advancing
The eradication of mosquito breeding areas, and with that
malaria, one of the principal causes of death in Angola, is the central
undertaking of the 145 Cuban collaborators working in this Southern African
country.
During a tour of the extensive municipal capital of Viana,
one of the most highly populated in the country, Prensa Latina noted the results
of work underway since 2009 in isolated communities by cooperative staff from
the Cuban Labiofam Group and Angolan brigadistas.
The Cuban collaborators and Angolans are working constantly
on eradicating mosquitoes, mice and other disease vectors, as Angolan Elsa de
Palma Mendes, municipal director of Health in Viana, with approximately two
million inhabitants, told this news agency.
"We are very happy with the work carried out to control
diseases such as malaria, which first includes a mapping of the area to detect
insect breeding locations and the training of health technicians in laboratory
and clinical work," she affirmed.
"Here in Viana, three of us Cuban collaborators are
working as advisors alongside a brigade of local fumigators, work much
appreciated by the population given the health benefits reported,"
specialist Alejandro Figueredo stated in the Madera neighborhood.
"The eradication of mosquito breeding grounds is helped
by the effectiveness of biological products such as Bactivec and Griselef.
"These products, which are biodegradable and do not
contaminate the environment, are used in established breeding grounds such as
irrigation channels, homes and other locations," noted Figueredo, a
veterinary doctor.
Malaria
Declining
In a brief recess from their fumigation, Angolan brigadistas
Justino José, Anacleto Banda and Joan Cumprido affirmed that for them, the work
has great significance, in that it is already contributing to saving human
lives.
"Given the efforts to help prevent diseases such as
malaria and dengue, those of us living here decided to cooperate in collecting
garbage and eliminating water leaks," said Madera resident Virginia de
Nascimento.
Gretel Raspall Gómez and Dunia Lamothe, director of the
anti-vector project in Angola and technical director of the program,
respectively, agreed that efforts are promoting a reduction in cases of malaria
and deaths from this disease.
Their statement is corroborated by the Ministry of Health in
Angola, which recently published figures revealing that prior to the program,
approximately 20,000 persons died every year from malaria, and that figure has
now fallen to less than 5,000.
Both specialists emphasized that the Labiofam project is
advancing successfully given actions such as training personnel and community
agents and giving educational talks on maintaining a healthy environment.
José Antonio Fraga Castro, director of the Cuban Labiofam
group, reaffirmed that the anti-malaria program, initiated four years ago in
Angola, has had notable results, given that infant and maternal mortality rates
have fallen.
This achievement, associated with increased access to Cuban
medical services, despite difficult working conditions, is acknowledged by the
population and Angolan authorities, the Labiofam director noted after the tour.
Labiofam could develop dietary supplements, agricultural
products, biofertilizers and biopesticides in the country, said Dr. Fraga
Castro, who was received by Agriculture and Development Minister Afonso Pedro
Canga.
He emphasized the increasing impact in Africa of the
cooperation of specialists with Labiofam, a group which, with a staff of
5,600-plus, is diversifying its products.
In this context, he affirmed that after the recent signing of
a cooperation agreement with health authorities in Gabon for the promotion of a
malaria control program, Labiofam is to send a brigade of 18 collaborative
workers in October to that country.
The director also announced that a factory, constructed with
Cuban aid, for the production of biolarvicides and biofertilizers is to open in
Tanzania this December 9, to meet Tanzanian needs and export to other African
nations.
Referring to the multiple actions being promoted by Labiofam,
Fraga Castro stated that during an upcoming visit to Ecuador, the group is to
sign a contract with this country for the construction of a bioproducts plant,
among other projects.
A
brigade of 80 Cuban specialists is currently working to control dengue in the
Latin American region, basically in coastal areas, he commented.
Forgotten backwaters, Africa
and wars and responsibility
 |
| Harriet Tubman |
By
Timothy Bancroft-Hinchey
The
mainstream media is full of stories about conflicts where NATO is involved in
savage attacks against civilians, water supplies, electricity grids, schools,
healthcare facilities, infra-structures, putting boots on the ground illegally
in its imperialist ventures. About Africa, however, silence.
The
Democratic Republic of the Congo is the latest victim of flash-points and
flare-ups of violence, this time between the Government forces and the M23
rebel group, despite assurances from M23 that it is to cease hostilities.
Ensuing stories of massive rape campaigns against defenceless women and
children, slaughter, desecration of bodies, looting, stealing and forced
displacement from homes, affecting tens of thousands of people, are rife, part
of a long list of reports of atrocities across the continent.
Elsewhere,
in the Central African Republic, most of the population has been affected by
war, westwards, in Nigeria, shocking atrocities are being committed weekly, the
latest being an ambush of a wedding convoy.
For
those who sniff and chortle in racist and xenophobic pig-faced derision, and
claim that such things happen in Africa, have always happened in Africa and
will always happen in Africa, some home truths.
The
African continent was literally raped, pillaged and plundered by aggressive
western societies, led by FUKUS duo (who else?) Britain and France, drawing
lines on maps which wholly and totally disrespected the natural frontiers used
by peoples and races, very often using European parameters based upon straight
lines and squares, whereas lines in Africa respect the circle of nature,
rivers, mountains and plains.
The
"this is ours, and that is yours" approach wholly and totally
disrespected and insulted people and traditions while it cynically pandered for
the whims and caprices of the corporations which sponsored the ventures, making
sure that resources had a one-way trip outwards. When the imperialist fantasy
ended, in great part due to the heroic freedom movements aided by the Union of
Soviet Socialist Republics, the western colonial masters made sure that things
continued in the same way by corrupting officials, paying them to maintain the
status quo.
When
wars and uprisings ensued, they simply corrupted the next group to assume
power. And why did wars and uprisings ensue? Because the west used the practice
of empowering minorities to guarantee that the governing forces would remain
loyal - and obedient. Tribes and peoples who would not normally retain power
were empowered against their historical rivals on condition that they towed the
line and in return for military support from those who turned machines guns on
"natives" with spears and shields.
"Shoot
when you see the whites of their eyes".
Therefore
it is not Africa's fault that the continent is beset by problems and the west's
plans for Africa are clearly visible in Libya, the country where the Human
Development Index was the highest in the continent, today reduced to utter
chaos and disorder thanks to (who else?) the UK and France, who together with
their FUKUS Axis partner the USA (France-UK-US), pillaged the country's
resources, engaged their armed forces and deployed military hardware against
the forces of law and order against international law, rendering Cameron,
Hague, Obama, Clinton and Sarkozy, among others, war criminals.
Muammar
al-Qathafi's pan-African projects (e-learning programme, telemedicine
programme, African Development Projects financed by Africans for Africans and
designed by Africans, free of interest repayments), for which he was to receive
a UN prize in 2011, were halted - and the western lobbies rubbed their hands in
glee as the continent was recolonized, the main impediment so unceremoniously
removed.
When
reading the book of Africa's problems, most chapters lead to London and Paris.
The international media would do well to document Africa's success stories, of
which there are many, yet virtually invisible in outlets more interested in
labeling the continent dangerous and dark, beset by diseases, famine and wars,
without bothering to state why. The international media would also do well to
explain why so many parts of Africa are living situations of chaos and
documenting the hand of the west in the making of these catastrophes.
For
example, and here is a teaser, the role of western corporations in dumping
toxic waste on the coasts of Somalia, taking advantage of the lawlessness
reigning in the country - something which to a certain extent explains the
hatred of the famous Somali pirates.
Document Reveals Plot to Destabilize Venezuela
 |
| Venezuela President Nicolas Maduro |
Leaked documents have
revealed evidence of a plot to destabilize Venezuela and undermine the rule of
leftist President Nicolas Maduro. The papers appear to substantiate Caracas’
claims of outside attempts to cripple the country through internal sabotage.
Documents obtained by a contributor to RT’s Spanish channel, Eva
Golinger, detail a structured plan to erode the stability of Venezuela with a
view to “returning real democracy and independence that have been hijacked for
more than 14 years.”
The
plans are allegedly the product of a conference between American company FTI
Consulting and two right-wing Colombian groups affiliated with former President
Alvaro Uribe in the Colombian city of Cucuta in June of this year.
Former
President Uribe was an outspoken critic of former Venezuelan President Hugo
Chavez, referring to him openly on Twitter as a “dictator” and
an “assassin.”
The
three groups propose an initiative they name “The Venezuelan Strategic Plan” and
list the ways in which they can disrupt all facets of Venezuelan society in the
run-up to December’s regional elections.
“The suggested aims in the plan are especially geared
towards the municipal elections on December 8,” writes the document. In the elections the Venezuelan
population will choose 335 mayors, 2,435 municipal councilors, 69 local
indigenous representatives, 2 mayors and 20 district councils.
The
document is broken down into bullet points, which deal with how to maximize the
impact on “all sectors of the Venezuelan
population.”
The
strategies to be employed include: “creating crisis on the streets, facilitating the intervention of
North America and NATO forces with the Colombian army,” power
cuts, food shortages, support and financing of the political opposition.
The
document writes that violence should also be encouraged and “whenever possible lead to
deaths and injuries.” It also gives special mention to
Venezuelan opposition figure Henrique Capriles who lost in the presidential
elections at the beginning of the year, advising support of his political
campaign.
Over
the last couple of months, Venezuelan state media has reported on shortages of
a number of basic products, including sugar, milk, oil, butter and flour.
Moreover, there have been a number of reports of large quantities of these
basic good being confiscated from warehouses belonging to businessmen linked to
the opposition and smugglers crossing the border to Colombia.
In
August, Venezuelan authorities intercepted between 50 and 60 tons of basic
goods in the state of Tachira which borders with Colombia.
President
Nicolas Maduro has blamed many of these cases on attempts by foreign powers to
meddle in Venezuelan affairs with a view to destabilizing the country. In
October, Maduro expelled three top American diplomats from Venezuela, alleging
they were plotting with the opposition to orchestrate mass power cuts.
“We detected a group of US embassy officials dedicated to meeting
the far right, and to financing and encouraging acts of sabotage against the
electrical system and Venezuela’s economy,” Maduro said in a televised speech.
The
US Embassy denied such a plot existed and any “involvement in any type of conspiracy to
destabilize the Venezuela government.”
Maduro
was named as successor by former President Hugo Chavez who died of cancer on
March 5 this year. When Maduro assumed the presidency in April he swore to
carry on the legacy of Chavez and adopted the same fiery anti-American rhetoric
as his predecessor.
Iranians'
distrust of US, deep-rooted
 |
| Iran President Hassan Rohani |
By
Amir Dabiri Mehr
In
the wake of tangible changes in relations between Iran and the United States in
the past three months - above all a landmark tête-à-tête between Iranian and US
foreign ministers and a historic phone conversation between the two countries’
presidents - some naïve observers imagined that the 35-year ice between the two
countries may thaw in 35 days.
But
realistic analysts maintain that these changes could at best be the start of a
new chapter in relations between the two countries.
Neither
the US nor Iran can reconsider all their past behaviors and positions
overnight. This un-changeability is seen in the US’s refusal over the past one
month to declare any intention to lift sanctions against the Islamic
Republic.
But
this article mainly focuses on the views and approaches of the Iranians. Some
simple-minded or biased observers are calling into question the prospect of any
rapprochement between Tehran and Washington as the “Death to US” slogan still
reverberates at rallies, most recently during the recent splendid ceremony held
in front of the former US Embassy in Tehran to mark the anniversary of the
November 4, 1979 seizure of the US diplomatic mission. “Are these positions not
contradictory and do they not neutralize one another?” ask these
observers.
The
answer to these questions is negative. If we look at this issue realistically,
we have to accept that no change can be envisaged in the relations between the
two countries because the status quo is the product of more than 60 years of
hostility, interference and ill intensions of the Americans against the Iranian
people, particularly in the early years following the 1979 Islamic Revolution.
The only reaction by Iranians to so much enmity has been the takeover of the US
Embassy in Tehran.
Definitely,
one cannot expect the mentality of Iranian public and particularly politicians
to change quickly under the influence of diplomatic smiles and after several
rounds of talks.
The
Iranian people and particularly educated Iranians and elites deeply believe
that Washington adopted the most brutal and the most interventionist policy
against Iran by fomenting the 1953 coup against the democratic government of Prime
Minister Mohammad Mosaddeq. Consequently, the Iranians’ hope of freedom and
democracy were delayed for at least one more decade as the US threw its weight
fully behind the dictatorial Pahlavi regime following the coup d’état.
Regardless
of Iranian people’s demands, the US government continued to support the Pahlavi
regime up to 1979 and when it failed to prevent the collapse of the monarchy in
Iran in the face of overwhelming popular waves and Islamic Revolution, it
decided to take revenge upon the Iranian nation for its big defeat. The hostile
US policies, which targeted the Iranian nation before the 1979 revolution, were
enforced against both Iranian government and nation after the revolution, with
the US’s support for Iraq’s then dictator Saddam Hussein in his eight-year war
against Iran being the most highlighted spot.
There
is evidence about the US having been instrumental in motivating Saddam to
invade Iran. The US policymakers imagined that a long war in the Middle East
will weaken both revolutionary Iran and Pan-Arabist Iraq in the Persian Gulf.
The devastating war killed around 300,000 Iranians youths who fought to defend
their nation and Islamic beliefs.
Even
during the years following the war, the US’s hostile policies - particularly
sanctions - continued against Iran and today most people lay the blame on the
US’s cruel sanctions for the economic woes they are grappling with. These
sanctions are the price the Iranians are paying for their independence- and
freedom-seeking without dependence on big powers, specifically the US.
After
all, the Iranians’ distrust of the Americans has historic roots. The Shiites
believe that there has always been a front of impiety, diabolism, and
oppression in the world and every Muslim is obligated to disavow this front.
Distancing oneself from this front is as obligatory as daily prayers, fasting,
hajj pilgrimage and other Islamic principles. Furthermore, based on
unchangeable divine traditions, Muslims believe that the front of oppression
and diabolism will be finally defeated although it may survive for a short
period of time.
In
the eyes of Iranians, the decision-making system in the United States
symbolizes the arrogant front which has always supported oppressors and
terrorists in the world and does not abstain from any action against the
oppressed and the poor in the world. Such a view does not include a large
segment of the American society, to whom the US owes its 200-year civilization
as well as its economic and cultural influence. The Iranian people consider the
Americans to have been taken hostage by the US policies.
Now,
how can the Iranians drop the “Death to US” slogan with such a background of US
hostility and embrace naïve optimism?
In
a bid to pave the way for further development, Washington:
1.
… must acknowledge that these hostile policies are the legacy of the previous
administrations and that the current administration does not endorse them and
is determined to reconsider them.
2.
… must symbolically apologize to the Iranian nation for its past hostilities,
pay damages to the Iranian people and put an end to its hostilities.
3.
… set the stage for winning over public opinion in Iran through words and deeds
and adoption clear policies.
In
case Washington adopts these policies and the Iranians feel the results of
these policies, one may expect the “Death to US” slogan to be shouted with less
resentment against Washington, because nothing more could be expected. But the
current slow and contradictory position-takings by the US officials, one cannot
expect any end to the “Death to US” slogan and if the current trend continues,
the old wound of distrust between Iran and the US will go deeper.
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