On December 17 the International Monetary Fund announced more money to Paul Biya’s government, while not answering Inner City Press question about Biya losing the African Cup of Nations on which the IMF relied. The December 17 announcement: “The Executive Board of the International Monetary Fund (IMF) today completed the third review of the arrangement under the Extended Credit Facility (ECF) Arrangement for Cameroon. The completion of the review enables the disbursement of SDR 55.2 million (about US$76.3 million), bringing total disbursements under the arrangement to SDR317.4 million (about US$438.9 million).

In completing the third review, the Executive Board also approved the authorities’ request for a waiver for the non-observance of the performance criterion on the ceiling on net BEAC financing and the modification of two performance criteria pertaining to the ceiling on net borrowing of the central government from the central bank, excluding IMF financing, and the continuous performance criterion on new non-concessional external debt contracted or guaranteed by the government.

Cameroon’s three-year arrangement for SDR 483 million (about US$667,8 million, or 175 percent of Cameroon’s quota), was approved on June 26, 2017. It aims at supporting the country’s efforts to restore external and fiscal sustainability and lay the foundations for sustainable, inclusive and private sector-led growth.

Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:

“Cameroon’s performance under its ECF-supported program is broadly satisfactory. Most end-June 2018 targets have been met and structural reforms have advanced, with completion of key delayed financial sector reforms.

“The authorities remain committed to the concerted regional effort to rebuild CEMAC’s fiscal and external buffers. To that end, addressing revenue shortfalls and containing investment spending will be key to reaching the 2018 deficit target. Steadfast implementation of the 2019 budget, including measures to mobilize non-oil revenue by gradually removing exemptions and further spending rationalization will be essential to mitigate the risks from the challenging security situation, increasing commodity price volatility and other shocks to growth.

“Public external debt has increased rapidly in 2018, mainly owing to faster-than-envisaged disbursements of foreign project loans. Strictly limiting new non-concessional borrowing and addressing the stock of contracted but undisbursed loans are essential to maintain debt sustainability. Gradual adjustments in administered prices would help reduce subsidies and restore the financial viability of key public utility companies, while lowering risks from contingent liabilities.

“Financial sector reforms should continue to advance, including effective resolution of ailing banks and reduction of overdue loans. Other structural reforms should focus on tackling governance issues and improving the business environment to support private investment and enhance competitiveness.

Source: Inner Press

This economic slavery is important for the development of the French economy. Whenever this traffic is likely to fail, France is ready for anything to reconquer it. If a leader of the CFA zone no longer meets the requirements of France, Paris is blocking its foreign exchange reserves and more, France closes the banks in this country considered “rebel”. This was the case of Côte d’Ivoire with Laurent Gbagbo.

A German newspaper accuses France of looting 440 billion euros each year to Africans through the CFA Franc. “The French government collects from its former colonies each year 440 billion euros of taxes. France relies on the revenues coming from Africa, not to sink into economic insignificance, warns the former president Jacques Chirac.

In the 1950s and 60s, France decided the French colonies of Africa to become independent. Although the Paris government accepted formal declarations of independence, it called on African countries to sign a so-called “pact for the continuation of colonization.” They agreed to introduce the French colonial currency FCFA (“Franc for the French colonies in Africa”), to maintain the French schools and military system, and to establish French as an official language.

The CFA franc is the denomination of the common currency of 14 African countries members of the Franc zone. This currency, which constitutes a brake on the emergence of these countries, was created in 1945, when France ratified the Bretton Woods agreements and proceeded to implement its first declaration of parity to the International Monetary Fund (IMF) . This was called “Franc of the French Colonies of Africa”.

Under this law, 14 African countries are still obliged to store about 85 per cent of their foreign exchange reserves at the Banque de France in Paris. They are under the direct control of the French Treasury. The countries concerned do not have access to this part of their reserves. As the 15 per cent of reserves are insufficient for their needs, they must borrow additional funds from the French Treasury at market prices. Since 1961, Paris controls all foreign exchange reserves in Benin, Burkina Faso, Guinea-Bissau, Côte d’Ivoire, Mali, Niger, Senegal, Togo, Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea and Gabon.

In addition, these countries must each year transfer their “colonial debt” for infrastructure built in France to Paris as Silicon Africa 3 reported in detail. France takes around 440 billion euros a year. The government in Paris also has a right of first refusal on all newly discovered natural resources in African countries. Finally, French companies must have priority in awarding contracts in former colonies. As a result, there is the most assets in the fields of supply, finance, transport, energy and agriculture in the hands of French companies.

The ruling elite in each African country must fulfill these compulsory claims without any other choice. African leaders who refuse are threatened with assassination or overthrow of their government. Over the past 50 years, there have been 67 coups d’état in 26 African countries. 16 of these 26 countries were former colonies of France.

An example is the first president of Togo West Africa, Sylvanus Olympio, overthrown by a coup. He had refused to sign the “Pact for the Continuation of Settlement”. But France insisted that Togo pay the compensation for the infrastructures that had been built by the French during the colonial period. The sum is equivalent to about 40 per cent of households in Togo in 1963, requiring the fairly independent country to reach its economic limits quickly.

In addition, the new president of Togo decided to remove and print his own national currency, the French colonial currency FCFA. Three days after this decision, the new government was overthrown by a group of former foreign legionaries and the President killed. The head of the Legionaries, Gnassingbe Eyadema, received 550 euros from the French embassy for the attack, according to the British Telegraph. Four years later Eyadema was promoted with the support of Paris, the new president of Togo. He established a tyrannical dictatorship in this West African country and remained in power until his death in 2005.

In the following years, the Paris government kept the link with the former legionaries to overthrow unpopular governments in its former colonies. This was the case of the first president of the Central African Republic, David Dacko, overthrown by former members of the Foreign Legion in 1966.

The same thing happened to the President of Burkina Faso, Maurice Yaméogo, and with the President of Benin, Mathieu Kérékou, the author of a coup d’état. This was also the case of the first President of the Republic of Mali Modiba Keita, who was also the victim of a coup by former legionnaires in 1968. The reason, a few years earlier, he had simply decided to part with the French colonial currency. “

Source: How Africa

Scottish First Minister Nicola Sturgeon has denounced as “unacceptable” the UK government’s draft Brexit deal, warning that divorce from the European Union will make Scotland “poorer.”

During a news conference in Edinburgh on Tuesday, the Scottish leader outlined her government’s opposition to the Brexit deal negotiated by British Prime Minister Theresa May and said no Scottish government could possibly accept a deal which left the country poorer.

Referring to a new report from the Scottish government, Sturgeon warned that the draft deal to leave the 28-member bloc could result in “loss equivalent to £1,610 per person in Scotland compared to EU membership by 2030.”

Investment in Scotland could be 7.7 percent lower by that date compared to if the UK stayed in the EU, according to the report.

“The analysis shows why the deal agreed by the Prime Minister is unacceptable to the Scottish Government and damaging to the people of Scotland,” Sturgeon said.

“No government of Scotland with the interests of this and future generations at heart could possibly accept it,” she added.

The Scottish leader also said the “special deal” being put in place to prevent the return to a hard border in Ireland would leave Scotland at a “serious competitive disadvantage” to Northern Ireland, and that, “In short, it will make us poorer.”

Sturgeon added that the Scottish government would support a second Brexit referendum with the option of remaining in the EU when the time is “right for the people of Scotland.”

Scots supporting independence from Britain failed to emerge victorious from a referendum in 2014 in which some 55 percent of the voters voted for the region to remain in the UK. However, they launched a fresh call for secession after a Brexit referendum in June 2016 in which Britons voted 52 to 48 to leave the EU.

The pro-independence camp in Scotland defies London’s assertion that the region, which is one of the UK’s four nations, should abide by the results of the Brexit referendum. They insist that some 62 of the voters in Scotland voted for continued EU membership.

May ‘governing by threat’ on Brexit deal

Meanwhile, Sturgeon criticized the British premier and said May is “governing by threat,” as she has been seeking to impose the Brexit deal on Scotland.

“The Prime Minister has made it clear at every turn that she is not interested in compromise; in fact she seems to have given up any attempt at governing by consensus and is now governing by threat,” the Scottish leader said.

Sturgeon stressed that the draft agreement was “a bad deal,” which Westminster was “seeking to impose on the people of Scotland regardless of the damage it will cause.”

The First Minister said, “It will not end uncertainty. It will extend it. We are being asked to accept a blindfold Brexit with all the difficult decisions kicked down the road.”

The draft agreement was signed with the EU on Sunday and will need to be approved by UK lawmakers next month.

May faces a daunting task of gaining the approval of the parliament for her Brexit deal as many from both the opposition and her own Conservative Party have vowed to reject it on December 12, when the House convenes to vote on the agreement.

The Brexit deal, comprised of two separate agreements on departure and future relations, has sparked widespread concerns in Britain.

The pro-EU camp believes the deal will deprive the UK of normal privileges of membership while offering almost nothing in return. The anti-EU camp says it will make Britain a colony of the EU and London would have no right to challenge the EU’s decisions, including those affecting its province of Northern Ireland, for many years to come.

There is a high chance that Britain would be forced to leave the EU on March 29, 2019, without an agreement if the parliament rejects May’s Brexit deal.

Source: Presstv

Celebrated international journalist Richard Quest has shared a stunning review of Kenya’s capital city, Nairobi, describing it as ‘gorgeous, genteel and genteel’.

Quest, who hosts CNN’s signature business show, is in the country to screen the launch of the much anticipated direct flight between Kenya and the United States.

He will join passengers on the inaugural Kenya Airways flight from Nairobi to New York on October 28.

Cutting the flight time between the two countries from 22 to 15 hours, this direct flight is being touted as a game-changer for Kenya’s tourism industry.

Kenya’s tourism minister Najib Balala adds that it will have a direct impact on the Kenyan economy through job creation and facilitation of cargo shipment of Kenya’s exports such as its flowers, tea, and coffee, directly to the US market.

The United States is Kenya’s leading tourism source market with a share of 11.8 per cent as of December 2017.

Quest in Nairobi

Visiting the country for th first time, Quest’s first activity was a run through Nairobi’s Karura Forest with Kenya’s top athlete, Eliud Kipchoge.

Kipchoge broke the world record in the Berlin Marathon in September this year clocking 2 hours, 01 minute and 39 seconds.

Quest was ‘more than impressed’ with the forest, describing it as a park that rivals New York’s Central Park, London’s Hyde Park, or Sydney’s botanic gardens.

‘‘We spent the afternoon in Karura Forest. If you wanted something to underscore this sense of pride you would be hard pushed to find a more pristine example,’‘ said Quest.
Karura forests, which sits on 1,000 hectares of land is one of the country’s few remaining indigenous forests.

Source: Africa News

Two closely-related tax schemes have helped banks and investors avoid tax or even siphon cash directly out of European treasuries totalling billions more than previously thought, an investigation by 19 media revealed Thursday.

So-called “cum-ex” and “cum-cum” deals — complex stock transactions around the days when companies pay out dividends — have cost taxpayers as much as 55 billion euros ($63 billion) in lost revenue or outright fraud since 2001.

The schemes were first uncovered in Germany in 2012.

But beyond Europe’s largest economy, Thursday’s investigation found evidence of the practices in France, Spain, Italy, the Netherlands, Denmark, Belgium, Austria, Finland, Norway and Switzerland.

Accounting for the bulk of the total at 46 billion euros, technically legal “cum-cum” tax avoidance exploits varying treatment of domestic and foreign shareholders.

Foreign investors holding shares in a company temporarily sell the stock to a bank based in the same country as the firm ahead of the day dividend gets paid out.

This allows them to escape higher taxes on the dividend charged to shareholders from abroad, before buying back their holdings quickly afterwards.

Such deals deprived Germany of 24.6 billion euros in tax revenue, France 17 billion and Italy 4.5 billion, according to the investigation led by investigative journalism website Correctiv with big-name outlets like German public broadcaster ARD and French newspaper Le Monde.

Criminal investigations

Meanwhile, clearly fraudulent “cum-ex” deals draw in more parties in a complex dance around the taxman.

Reportedly conceived by well-known German lawyer Hanno Berger, the cum-ex method relies on several investors buying and selling shares in a company amongst themselves around the day when the firm pays out its dividend.

The stock changes hands so quickly that the tax authorities are unable to identify who is the true owner.

Working together, the investors can claim multiple rebates for tax paid on the dividend and share out the profits amongst themselves — with the treasury footing the bill.

This practice cost Germany 7.2 billion euros, Denmark 1.7 billion and Belgium 201 million, the investigation found.

Since 2012 six criminal investigations have been opened in Germany, including against tax lawyer Berger and several stock market traders.

Norway’s tax authority told AFP that it had uncovered a fraud worth 580,000 crowns ($70,533 or 61,304 euros) in 2013 and blocked several later attempts after a warning from Denmark.

The country has since strengthened its surveillance, it added.

Meanwhile Danish prosecutors have been studying tax practices around dividends since 2015 and are examining “whether there is a basis for criminal proceedings against people or companies involved,” spokesman Simon Gosvig said.

Pierre Moscovici, European Commissioner for economic and financial affairs, tweeted in response to the investigation that European tax authorities should share more information and improve transparency.

“If the fraudsters’ imagination is limitless, my determination is as well!” he wrote.

(AFP)