Sugar millers in Western Kenya have asked the government to find measures of stopping he entry of illegal sugar into the markets that threatens their operations.
The Kenya Sugar Manufacture Association says there is an influx of cheap sugar crossing the border into the Kenyan market without paying necessary duties.
The association chairman Peter Kebati says the government needs to seal the loopholes at the border where illegal sugar passes into the country.
Kebati says the mills will be forced to reduce the cane price that now stands at Sh. 2,900 per tonne if the issue is not addressed by the government.
Addressing the press in Kisumu after their meeting, Kebati who is also the managing director of Mumias Sugar Company says that the government should advance funds for development of more cane.
He says there are numerous millers in Western Kenya but there is no effort to develop more cane for the mills.
Kebati noted that more research should be done in other areas in the country for expansion of the development of more cane.
Enjoy being enlightened on our country’s Budget cycle and the devolution process
Our Budget, Our County, Our Responsibility- Know the Timelines
The Division of Revenue Bill specifies the share of each level of government of the revenue raised nationally for the relevant financial year.
The County Allocation of Revenue Bill specifies each county’s share of that revenue and any other allocations to the counties, from the national government’s share of that revenue, and any conditions on which those allocations shall be made.
March 16: This is the deadline for passing the Division of Revenue and County Allocation of Revenue Bills.
March 1: This is the Deadline for Budget Policy Statement to be made available to the public.
The County Fiscal Strategy Paper (CFSP) is a document prepared by the County Treasury that specifies the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the medium term. The CFSP provides the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term.
February 28. This is the deadline for Budget Policy Statement to be approved by Parliament. This is also the deadline for the County Fiscal Strategy Paper to be tabled in each County Assembly.
February 15. At the National level, Cabinet Secretary for Finance is expected to submit the national Budget Policy Statement to Parliament. This is also the deadline for the debt management strategy paper, and the Division of Revenue and County Allocation of Revenue Bills to go to Parliament.
Keeping you informed on county budgets timelines and the devolved system process
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Infrastructure in Africa: AfDB Group’s Africa50 Fund partner of the BUILD Africa Forum on infrastructure in Africa
The forum will take place on February 5-7, 2014, in Brazzaville, Congo
BRAZZAVILLE, Republic of the Congo, December 2, 2013/ — The BUILD Africa forum (http://www.buildafricaforum.com) is pleased to announce a strategic partnership with the African Development Bank Group’s Africa50 infrastructure fund.
Held under the High Patronage of Denis Sassou N’Guesso, President of the Republic of the Congo, the BUILD Africa Forum will address Africa’s infrastructure challenges by bringing leading public and private sector stakeholders to the table. The forum will take place on February 5-7, 2014, in Brazzaville, Congo.
Working together, the BUILD Africa forum and Africa50, the AfDB’s single-A infrastructure delivery vehicle, will showcase innovative projects in Africa and develop a structural framework for these and other future projects.
African growth today is hindered by a substantive lack of resource leverage and project coordination. The aim of this partnership is to promote understanding of the various ways in which stakeholders can accelerate the speed and quality of project delivery and increase the number of infrastructure projects that reach bankability in Africa. The BUILD Africa forum together with Africa50 is making today’s financial innovation and regional integration platforms the norm for tomorrow.
Fast facts on Africa’s infrastructure needs (Source: BAD, 2009)
Africa must invest $50 billion annually in infrastructure:
• 40% of the population lacks access to potable water.
• 60% lacks access to proper sanitation.
• Transportation costs in Africa are among the highest in the world.
• A mere 30% of the Africans have regular access to electricity.
• Africa has the lowest rate of penetration globally, of telephone access at 14% (worldwide average 52%).
Quotes on the Africa50 & BUILD Africa forum partnership
Tas Anvaripour, Director of AfDB Africa50: “African infrastructure projects are increasingly capturing the attention of investors worldwide. However, the number of bankable infrastructure projects brought to market is still insufficient, even though they offer an excellent way to diversify investment portfolios and steady, long-term, and above average returns.”
Jean-Jacques Bouya, Minister to the President of the Republic for Spatial Planning and Delegate General for Major Public Works, Republic of the Congo: “The partnership between Africa50 and BUILD Africa illustrates the aim of the forum to boost smart and innovative investment mechanisms, in order to develop infrastructure and to activate a sustainable social and economic development across the African continent.”
Distributed by APO (African Press Organization) on behalf of Richard Attias & Associates.
About BUILD Africa
Held in Brazzaville, Republic of the Congo from the 5th to the 7th of February 2014, under the High Patronage of His Excellency President Denis Sassou N’Guesso, the BUILD Africa Forum (http://www.buildafricaforum.com) will gather more than 500 business & political leaders, who will endeavour to find innovative solutions to Africa’s numerous infrastructure challenges and ambitions.
About Africa50 Fund
Africa50 is a new and innovative vehicle which is re-imagining infrastructure financing and aims to unlock global private capital to close the Africa infrastructure gap. Africa50 will bring to the market much needed financing tools and services, mainly offered through its two sub-vehicles: Project Finance and Project Development. It will be groundbreaking in its design and structure, leveraging infrastructure-financing resources from a diverse set of sources. Africa50 is in the process of raising $10 billion USD to finance infrastructure projects across the continent.
For more information & press material, on BUILD AFRICA Forum please contact:
The government is also offering PPPs in land concession agreements, where a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out investment in a public utility for a given number of years.
According to Ms Lemunge, negotiations are already going on between the Chinese government and that of Tanzania with regard to the development of the Bagamoyo port.
Established six years ago, Tanzania’s EPZA has seven industrial parks and 24 standalone single factory units not located within the zones, with EPZA declaring such factories special economic zones.
The parks and stand-alone factories have attracted a total capital of $1.15 billion, creating 26,381 direct jobs with annual export turnover of $357 million.
Investors who put their money in infrastructure development in Tanzania’s Special Economic Zones (SEZs) will be exempted from paying tax for 10 years.
The government has identified a total of 16,150 hectares of land for the SEZs — 10,500 in Bagamoyo, 2,650 in Mtwara and 3,000 in Kigoma — which it hopes to develop into cities, Grace Lemunge, investment promotion manager at the Tanzania Export Processing Zones Authority (EPZA), told The EastAfrican.
For Bagamoyo, located 50 kilometres from Dar es Salaam, the government has recently paid Tsh120 billion ($75 billion) as compensation for land acquired to pave the way for a satellite city, with a free port and an international airport.
“The authority has set aside 3,000 hectares for social infrastructure, such as residences, schools, hospitals and entertainment centres,” Ms Lemunge said.
Another 6,000 hectares have been allocated for industrial services and commercial infrastructure, while 500 hectares have been set aside for a free port and 1,000 for an airport.
Mtwara is an integrated project with land owned by the government through the Tanzania Ports Authority, that aims at supporting the Southern Corridor linking Mozambique, Malawi, Zambia and Congo.
It will have a free port, industrial, technological and tourism parks, as well as logistics centres targeting companies providing services to offshore oil and gas companies.
For Kigoma, where the land is owned by the municipal council, the government is seeking investors for construction of a port on Lake Tanganyika bordering Burundi and DRC.
The area, for which a feasibility study and phase one of the master plan have been completed, is to be developed into an industrial cum commercial complex that will be a trade hub for neighbouring countries.
“Investors are invited to develop Kigoma port, EPZ and SEZ industrial, commercial, tourist and ICT parks, warehouses, hotels, banks, schools, hospitals and housing estates,” said Ms Lemunge.
Investors will also be exempted from paying taxes and duties for machinery, equipment, heavy-duty vehicles, building and construction materials and any other goods of a capital nature to be used for purposes of development of SEZ infrastructure.
They will also be exempted from payment of corporate tax, withholding tax on rent, dividends and interest as well as exemption from payment of property tax for the first 10 years.
The investor is also entitled to an initial automatic immigrant quota of five people during the start-up period and thereafter any application for extra people will be submitted to the authority, which in consultation with immigration department will make the authorisation taking into consideration the availability of qualified Tanzanians.
The projects are to be executed in various forms of private-public partnership, which includes Build Operate Transfer, a financing arrangement where a developer designs and builds a complete project or facility at little or no cost to the government or a joint venture partner.
Then the investor owns and operates the facility as a business for a specified period — ranging between 10 and 30 years — after which he transfers it to the government or partner at a previously agreed-upon or market price.
AfDB Board commits US $113 million to Regional Rusumo Falls Hydropower Project
The Rusumo Falls project will increase renewable power generating capacity and access to electricity in Tanzania, Rwanda and Burundi
TUNIS, Tunisia, November 27, 2013/ — The African Development Bank Group’s (AfDB) (http://www.afdb.org) efforts to improve sustainable energy supply and access in Africa took a leap forward with the Board of Directors’ approval of the Regional Rusumo Falls Hydropower Project. The Bank Group allocated US $97.3 million from the African Development Fund (ADF) and the Nigeria Trust Fund for the multinational project, which will support the development of sustainable energy infrastructure. An additional US $16 million grant from the Sustainable Energy for All (SE4All) window of the EU-Africa Infrastructure Trust Fund was recently mobilized by the AfDB Group to help finance part of the Burundi transmission line from the Rusumo Falls power plant.
The Rusumo Falls project will increase renewable power generating capacity and access to electricity in Tanzania, Rwanda and Burundi. The project has two components: an 80 MW hydropower generation plant and transmission lines and substations. The Bank finances the transmission facilities of Rusumo Falls Hydropower Project. Beneficiaries of the project include the households, industries, SMEs and businesses in Burundi, Rwanda and Tanzania,
who will gain access to cheaper, more reliable and clean electricity.
Construction of the transmission facilities is expected to be completed by August 2018; the three countries will share the power generated equally. The project will enhance the process of regional integration by the countries developing and managing the joint assets.
“Rusumo Falls is one of many projects financed by the AfDB in response to a crisis in low-energy access rates, limited infrastructure development in the region and regional projects that enhance regional stability through increased cooperation and integration among countries. Africa has incredible untapped hydropower potential: only four per cent of which has been exploited,” explained Alex Rugamba, Director of the AfDB’s Energy, Environment and Climate Change Department. “Through projects such as the Rusumo Falls project we are looking to leverage Africa’s natural assets for universal access to modern, reliable and affordable energy services on the continent.”
The project will increase hydroelectricity supply capacity to relieve the power deficit in all three countries. It will also allow them to address their low energy access rates. Rwanda and Tanzania will be able to displace some of the energy generated from high cost imported fuel with cheaper hydropower thereby reducing the current electricity tariff. In the case of Burundi, the project will provide 50% of the current peak power demand, which will allow the country to expand access and other economic activities, and reduce CO2 emissions.
The Rusumo Falls project is a Programme for Infrastructure Development for Africa (PIDA) priority project. In 2012, African Heads of State endorsed a set of priority energy projects to be implemented by 2020 as part of the PIDA. Rusumo Falls is one of nine hydropower projects identified for the PIDA energy infrastructure program, which focuses on major hydroelectric projects and interconnects the power pools between countries.
The AfDB’s support to the Rusumo Falls project has spanned several years. In 2006, the Bank provided an ADF grant of US $4 million to the Nile Basin Initiative to finance the technical, financial, economic and social feasibility studies for the transmission lines of the Rusumo Falls hydroelectric plant.
Distributed by APO (African Press Organization) on behalf of the African Development Bank (AfDB).
Contacts:
Media: Penelope Pontet de Fouquieres, Knowledge Management and Communications, T. +216 71 10 19 96 / C. +216 24 66 36 96 / p.pontetdefouquieres@afdb.org
Technical contact: Alemayehu Wubeshet-Zegeye, Chief Power Engineer, a.wubeshet-zegeye@afdb.org
About the African Development Bank Group
The African Development Bank Group (AfDB) (http://www.afdb.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.
Harith is an established and dedicated fund manager with a predominantly African focus and a wealth of experience in infrastructural investment
JOHANNESBURG, South-Africa, November 19, 2013/ — Harith (http://www.harith.co.za) has concluded the acquisition of the entire shareholding of the Company from the shareholders of FMFML (namely Standard Bank Group Limited (“SBG”), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”) and EMP (Africa), L.L.C. (“EMP Africa”) for an undisclosed sum. The Transaction was subject to the consent of the two debt funds which FMFML exclusively manages, the Emerging Africa Infrastructure Fund Limited (“EAIF”) and GuarantCo Limited (“GuarantCo”) (together, “the Funds”).
Photo: http://www.photos.apo-opa.com/index.php?level=picture&id=735 (Tshepo Mahloele, CEO of Harith General Partners)
The Funds provide an array of innovative debt products to select emerging markets with an Africa focus and have a strong track record of financing infrastructure projects across a range of sectors. FMFML has successfully managed the Funds since its establishment in January 2002, with the current combined fund capacity of the Funds exceeding US1.2bn and a focus on increasing its capacity.
EAIF provides long term debt or mezzanine finance to support the construction and development of private infrastructure to over 50 projects across sub-Saharan Africa. GuarantCo provides guarantees for local currency financing for infrastructure projects and operates in and around the developing world. Major investors of the Funds include major European governments and commercial and developmental finance banks.
Harith is an established and dedicated fund manager with a predominantly African focus and a wealth of experience in infrastructural investment. FMFML will seek to leverage off Harith’s strategic relationships, expertise and complementary product offerings to support the objectives and vision of the Company and the Funds. Harith’s acquisition of FMFML may better position FMFML to develop to its full potential in a focused fund management operation with an African focus and will provide a further platform for Harith’s growth ambitions.
The management team of FMFML will remain in place and the Company will continue to operate as a stand-alone business under the Frontier Markets Fund Managers name, supported by Harith and its infrastructure.
The acquisition forms part of Harith’s growth strategy of being a multi-fund manager and will greatly enhance its geographic footprint in the market, says Harith CEO Tshepo Mahloele. The synergistic nature of this deal, offering debt and equity products, will provide Harith’s clients with a “one-stop service” in their quest to secure much needed finance for good infrastructure projects in the continent.
Mahloele says the transaction also represents a strategic fit and leap in terms of broadening the human capital and the diverse set of skills and experience in the platform. “We envisage that the platform will continue to enjoy the support of the existing donor community as represented by a number of European governments and will become a vehicle of choice for international capital and African capital looking for exposure in the continent.”
Distributed by APO (African Press Organization) on behalf of Harith General Partners (Pty) Ltd.
Media contact:
Pule Molebeledi
Investor Relations and Communications Executive
+27 11 384 4002
Pule.molebeledi@harith.co.za
About Harith General Partners
Harith General Partners (http://www.harith.co.za) is the leading Pan-African fund manager for infrastructure development across the continent. Based in South Africa, Harith manages Africa’s first and only 15-year infrastructure fund, the Pan African Infrastructure Development Fund (PAIDF). The US $630m fund is invested in a number of major projects in diversified sectors such as energy, transport and information, communication and telecommunications. The PAIDF is supported by African capital raised from state pension funds, development finance institutions, top investment banks and financial institutions. Harith has offices in Ghana, Tunisia and London. The Harith team is made up of experienced and skilled investment professionals who are knowledgeable about investing in the continent. http://www.harith.co.za
For any questionable expenditure malpractices in the government, we have a right as Kenyan citizens and tax payers to voice our concerns because in the long run, if we fail, it will affect the larger spectrum of our country’s economic growth.
Therefore, knowing the way the government spends our taxes is not a preserve for those in government but a responsibility for every citizen.
For purposes of fiscal accountability and effective management of our taxes by the government, those tasked with the responsibility of ensuring that all is well in the exchequer need to conduct an audit to divulge how the costs incurred on the ongoing ICC case of the deputy President William Ruto, and the shuttle diplomacy for deferral are paid off.
Kenyans need to know who incurred the costs for the recent delegation to the African Union (AU) in Addis Ababa, whose purpose was not the good of Kenya but to rally the AU for the deferral of the cases facing President Uhuru Kenyatta and his deputy at The Hague.
Secondly, the current delegation in New York which encompasses our national diplomats and several others from other African nations supporting Kenya for the deferral like Rwanda and Ethiopia is a costly affair. We need to know if Uhuru and Ruto are meeting these expenses and not Kenyan tax payers.
Besides, its note worthy that our two leaders are engaging the most expensive lawyers in the world in their cases. Kenyans will want to know who is meeting the hefty legal fees since not many people can afford to hire Stephen Kay, who is also the Queen’s Counsel and the combative Karim Khan for Uhuru and Ruto respectively.
Lastly, the travel and accommodation expenses for MPs who have been accompanying the Deputy President to the Netherlands, is now in a tune of millions. We also need to know who is footing the heavy bill since we all know that, life in Europe is extremely expensive which is often characterized by their strong currency- the Euro.
I’m not trying to imply that our two leaders cannot afford the said expenses but as a nation moving towards high levels of transparency and accountability in the way we conduct our national affairs, it’s better for the tax payers to know who is responsible for the high costs related to the current predicaments facing the President and his deputy.
Uhuru and Ruto are among the few billionaires we have in Kenya, but if they get a loophole to use our taxes for their cases, they may not touch their wallets. This is solid reality if the hustler’s jet scandal which cost Kenya taxpayers a whooping 25 million shillings for Ruto, is something to go by.
Since the ICC is a personal problem to the President and his deputy as they told the nation during the campaigns, wananchi don’t need to pay a penny for the delegation currently in New York and the recent one in Ethiopia. We therefore can’t pay for their personal cases when we are paying for their salaries and heavy benefits.
As taxpayers, we risk losing billions before the end of the ICC cases thus, the need not to assume that all is well, when a stitch in time saves nine.
Finally, as a concerned Kenyan, I evoke the Parliamentary Budget and Appropriations Committee, the Public Accounts Committee and the Auditor General to tell the nation the truth on the above. May they effectively monitor government spending lest we end up crying.
This is not an accusation and I do not have any evidence to conclude that our leaders have used state resources in their ICC cases.
The great economic squeeze are brought by the interference of Corporate special interest monopoly and control. The opportunity for small business is the key to reviving economic growth and stabilizes Government capacity regulation to offer efficient and balanced public service delivery.
This is the way to go people……………….
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com/
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Barrick Gold’s Stock Crushed As Miner Keeps Punishing Shareholders
Investors who bet on the world’s biggest gold miner after its stock got decimated in the first half of 2013 have been given the kind of treatment that shareholders of Barrick Gold ABX -6.81% have gotten accustomed to receiving. Barrick has announced that it is going to dilute shareholders in a big way by selling $3.45 billion of shares for $18.35 each.
Shares of Barrick Gold got crushed in Friday morning trading, tumbling by about 6% to $18.22. The stock drop is coming on the heels of a 5% drop on Thursday, when Barrick announced it would suspend its Pascua-Lama mega gold mine located in the high-altitude Andes on the Argentina-Chile border. Shares of Barrick Gold are now down 48% in 2013.
With one of the biggest share offerings in gold mining history, Barrick is trying to raise enough cash to pay down some $2.6 billion of its $15 billion or so in debt that it has accumulated through reckless spending and acquisitions during the huge run up in the price of gold. While suspending work at Pascua-Lama and dealing with its debt-load might seem like a good idea, shareholders probably remember that the last time Barrick pulled off a big share offering in 2009, it raised about $4 billion by selling shares for $36.95.
Barrick has become the poster child for the gold mining sector, which has punished shareholders more than just about any other industry sector in recent years. These companies have managed to underperform gold both when it rises and when it falls—giving investors little upside in the best of environments and handing them massive losses on the way down. Gold miners have spent $45 billion on projects and acquisitions since 2010, but gold output has actually declined. Much of Barrick’s troubles can be traced to its spending on Pascua-Lama and its acquisition of Equinox Minerals.
Move up http://i.forbesimg.com tMove down
How Gold Miners Became A Terrible Investment Nathan VardiForbes Staff
With the price of gold having fallen in the last year, the economics of many projects in the gold mining sector like Pascua-Lama don’t really work. The costs associated with moving forward in Pascua-Lama were soaring while the price of the commodity was declining. Another way shareholders have been abused: the executives of many gold miners have been paid well even as their companies destroyed shareholder value. At Barrick, former CEO Aaron Regent was paid $12 million, mostly from a severance package after he was fired. The man who was hired to potentially replace Peter Munk at the top of Barrick, former president of Goldman Sachs John Thornton, got an $11.9 million signing bonus.
Laptrust, the pension fund for county government workers in Kenya, has opened a new branch in Kisumu as it seeks to grow revenues by strengthening its membership base in the counties.
The fund, which boasts over Ksh18 billion in assets, plans to expand to other counties and bring its services closer to members who are spread across the country.
“We have decided to open branches in every county. Kisumu is the first branch outside Nairobi we are opening in the 84 years of our existence. The decision was aimed at bringing more personalized service to our members in line with our quest to be the pension fund that serves the counties,” said Laptrust CEO Hosea Kili during the opening ceremony in Kisumu.
He added that Laptrust will soon open other branches in Mombasa, Nyeri and Garissa.
Kisumu Governor Jack Ranguma said move by Laptrust would benefit pensioners who would no longer have to travel to Nairobi to collect their dues.
“My government appreciates this noble initiative of bringing services to customers in the spirit of devolution. Kisumu is the regional hub and this office will not only serve customers in Kisumu but also others in the region,” said the Governor in a speech read on his behalf by the county executive committee member Rhoda Ahonobadha.
The pension scheme, established in 1929, is targeting to grow its asset base to Ksh 22 billion by the end of this year. The fund’s net assets improved by 17.6 per cent to Ksh4 billion in 2012 compared to Ksh3.4 billion in 2011, attributable to high returns realized from liquid investments as well as quoted equities.
“Due to the positive environment in the year under review, the scheme recorded another strong of performance with the emphasis on improving revenue collection and prudent investments across a range of assets,” Kili told the fund’s members at the annual general meeting in Eldoret on Monday.
Kili said the fund was keen on further diversifying its asset portfolio comprising mainly property, government securities and quoted and unquoted equities.
“We are restructuring our current portfolio, for instance, by investing more in private companies with strong growth potential and optimizing our property investments,” explained Kili.
He added that the fund was keen on reducing debt owed by contributors and had successfully recovered Ksh4 billion in debts by the end of last year. The number of pensioners benefiting from the scheme rose from 4,294 to 4,450 in 2012.
The fund’s membership grew from 22,685 in 2011 to 23,458 as at December 31, 2012. Kili says the improved revenue collection was also partly attributable to improved operational efficiency and enhanced customer service.
The fund’s membership comprises mostly county government employees, previously working for the defunct local authorities.
Tax evasion poses an acute challenge to developing and developed countries. From 2000 to 2010, illicit financial flows deprived developing countries of US$5.86 trillion. Tax evasion is not a victimless crime – for people in the developing world, the consequences of tax evasion can be a matter of life and death.
Companies and other legal structures that are anonymously owned and controlled are a key mechanism of tax evasion. Securing more disclosure about who owns and controls these vehicles would not only help prevent capital flight in future but may also bring trillions of dollars of offshore wealth back into the tax net. If countries could start to recover this untaxed wealth, it could have an enormous impact on people’s lives.
Tax evaders use many of the same techniques to move their assets as criminals involved in corruption, terrorist financing, nuclear proliferation, arms smuggling and many other abuses. Therefore many of the measures taken to tackle these activities, especially around transparency, are the same.
This summary sets out how opaque ownership structures are a key tool for money launderers, and facilitate crime. It also shows how anti-money laundering frameworks provide an opportunity to secure transparency by revealing the identity of beneficial owners – the real people who own and control bank accounts and legal structures such as companies, trusts and foundations.
The African Guarantee Fund (AGF), the GICAM and Consortium of Banks Sign a Protocol Agreement to Finance and Support SME Businesses in Cameroon
The inaccessibility of finance is a major obstacle to small business growth and development, with only 20% of African SMEs receiving a credit line from a financial institution
YAOUNDE, Cameroon, October 31, 2013/ — The African Guarantee Fund for Small and Medium sized Enterprises (AGF) (www.africanguaranteefund.com) has today signed a protocol agreement worth USD 100 million with the GICAM and a consortium of banks (SGBC, BICEC, Afriland First Bank, Ecobank, BGFI) to set up a pilot project for financing and support Small and Medium sized Enterprises (SME) in Cameroon.
The inaccessibility of finance is a major obstacle to small business growth and development, with only 20% of African SMEs receiving a credit line from a financial institution. The facilities received under this project will allow Cameroonian SMEs to position themselves competitively on the market of the Central African region and Nigeria.
Commenting on this transaction, GICAM’s President, Andre Fotso said: “This one-of a kind agreement reaffirms GICAM’s commitment to support small and medium-sized businesses and will further enable the SME sector play a critical role in the socio-economic development of Cameroon.”
It comes just weeks after AGF signed a USD 50 million guarantee facility agreement with Ecobank Transnational Incorporated (“Ecobank”), the leading pan-African banking group.
Also speaking, M. Felix Bikpo, the Chief Executive Officer of AGF added: “This agreement is of great significance as it provides a platform through which Cameroonian SMEs will be assisted not only in getting increased access to financing, but also capacity development support to enhance their managerial capabilities. This Partnership is another manifestation of AGF’s role as the missing link to increasing the financing of African SMEs by banks and non-bank financial institutions”.
Distributed by APO (African Press Organization) on behalf of the African Guarantee Fund (AGF)
Media Contacts
David Ekabouma
Phone: +254 732 148 000
Email: david.ekabouma@africanguaranteefund.com
About The African Guarantee Fund (AGF)
AGF is a Pan-African non-bank financial institution owned by the African Development Bank (AfDB), Danish International Development Agency (Danida) and Spanish Agency for International Development Cooperation (aecid). AGF was officially launched on 1st June 2012.
AGF’s primary mandate is to assist financial institutions (banks, private equity funds, lease finance houses and development finance institutions) in Africa to scale up their SME financing through the provision of partial loan guarantees and SME financing Capacity Development Assistance. Widely referred to as the Missing Link to the scaling up of African SME financing, AGF assists financial institutions with the following products; Equity Financing Guarantees; Loan Guarantees (both Portfolio and individual loan guarantees); Resource Mobilization Guarantees; Counter-Guarantees; and SME Financing Capacity Development Assistance.
Additional information may be found at www.africanguaranteefund.com
I’m James Dubick of the organization U.S. PIRG, and I started a petition to U.S. Attorney General Eric Holder, which says:
As you negotiate what is likely to be the largest bank settlement for wrongdoing in U.S. history, please don’t let JPMorgan deduct the settlement from their taxes. If they are allowed to do so, it could stick American taxpayers with a $4.5 billion tab.
Sign James Dubick’s petition
JPMorgan is currently negotiatng a $13 billion settlement with the Department of Justice (DOJ) for mortgage lending abuses they allegedly committed during the housing crisis. However, taxpayers could end up underwriting more than $4.5 billion of that settlement.
That’s because JPMorgan is likely to claim the settlement as a tax deduction. Even though settlements like these are thought of as punishment for corporate wrongdoing, companies claim their settlement costs as tax write-offs all the time. They treat them as just another business expense.
We can’t let that happen. The financial crisis caused by banks’ irresponsible practices landed us in a recession that we’re still struggling to recover from. Taxpayers shouldn’t have to pay any more for JPMorgan’s bad actions.
Tell the Department of Justice not to let JPMorgan take the settlement as a tax write-off.
http://www.moveon.org/r/?r=294569&id=77088-21095459-3Oq4cbx&t=2
The Department of Justice has the power to include a provision in JPMorgan’s settlement that prohibits them from taking the settlement as a tax write-off. We just need to convince the DOJ to do the right thing. They’ve done it before, including with one of BP’s settlements for the Gulf oil spill.
The DOJ will be negotiating the final settlement deal with JPMorgan over the next few days, so we must move quickly to make sure the public doesn’t get stuck footing a $4.5 billion tab.
This petition was created on MoveOn’s online petition site, where anyone can start their own online petitions. U.S. PIRG didn’t pay us to send this email—we never rent or sell the MoveOn.org list.
Want to support our work? MoveOn Civic Action is entirely funded by our 8 million members—no corporate contributions, no big checks from CEOs. And our tiny staff ensures that small contributions go a long way. Chip in here.
https://civic.moveon.org/donatec4/creditcard.html?cpn_id=457&id=77088-21095459-3Oq4cbx
From: News Release – African Press Organization (APO)
PRESS RELEASE
Subject: 7th Annual Powering Africa Finance Options Meeting: Cape Town to Welcome International Private Equity Investors at the 7th Annual Powering Africa: Finance Options Meeting
Cape Town to Welcome International Private Equity Investors at the 7th Annual Powering Africa: Finance Options Meeting
CAPE-TOWN, South-Africa, October 24, 2013/ — The 7th Annual Powering Africa Finance Options Meeting (PA:FO) (http://www.poweringafrica-finance.com) will take place from 14-15th November at the Vineyard Hotel & Spa in Cape Town, designed to help investors identify the most profitable future opportunities in Africa’s power sector.
Karen Breytenbach, Senior Project Advisor for the National Treasury’s PPP Unit in South Africa, will be joined by senior representatives from Kenya Electricity Generating Company, Eskom, China-Africa Development Fund, Schneider Electric, Globeleq, Webber Wentzel, Odebrecht, Aggreko and Standard Bank among others to discuss and debate the future of the market, share ideas on investments and question peers and competitors on their plans over the coming year.
With Africa’s industrial economies booming and liquidity among banks struggling to keep up with demand, can private equity fill the gap in getting mid-cap projects off the ground? We have seen a reflection of South Africa’s successful power investment programmes in many parts of Africa driven by resource investment and government engagement – specifically in the power sector. Notably, Nigeria’s economy has transformed in the last 12 months with a wash of projects coming online and investors falling over themselves to participate.
At the recent EnergyNet Power Investors Summit: Nigeria, one major international investor commented that testing their planned entrance strategy at the meeting had “highlighted considerable misgivings- the round table discussions provided enough valuable content to potentially save the business a US$100mln investment error.”
As a consequence of such rapid growth, within the gold rush there will be casualties. As is clear, working in Africa requires specific knowledge and understanding that will give a project the best opportunity for success; this will be the difference between US$100mln and US$1bln of investment from private equity firms. This new format of investor meeting will see stalwarts of the African power sector on both sides of the developer and structured finance value chain trading knowledge with relatively new investors to make sure early mistakes are missed.
Discussions at PA:FO will be conducted under Chatham House Rule to allow for open discussion and maximum exchange of information.
To view the full speaker list for this event, please visit http://www.poweringafrica-finance.com
Event dates: 14-15th November 2013
Event location: Vineyard Hotel & Spa, Cape Town
Event website: www.poweringafrica-finance..com
Distributed by APO (African Press Organization) on behalf of Clarion Events.
From: David Simas, The White House
Date: Fri, Oct 18, 2013 at 6:25 PM
Subject: No winners
Hello, everyone —
Late Wednesday night, after a 16-day shutdown, the President signed a bill to reopen the government and pay our country’s bills. Today, a government shutdown over delaying or defunding the health care law can no longer hurt our economy. We are no longer facing the threat of default.
While this bipartisan compromise is the right thing to do for the country, there are no winners when Washington keeps hijacking our economy month after month.
Nobody wins when hundreds of thousands of people don’t know when their next paycheck will come. Nobody wins when millions of veterans and seniors risk losing benefits that they’ve paid for, earned, and rely on. Nobody wins when businesses stop hiring and our economy grows slower than it could.
Ultimately, the reason this shutdown ended was simple: Democrats and responsible Republicans got together, recognized that holding the American economy hostage should have no place in our politics, and got the job done. They did what the American people elected them to do.
Today, every American should have a clear sense of where we stand, and where we’re going. Watch the President’s statement yesterday about the end of the shutdown, and then pass it along so that other folks see it, too.
In his remarks, the President asked Congress to focus on finishing three specific policy priorities in the weeks to come.
First, that means passing a budget that invests in the things that will create a better bargain for the middle class — like educating our children, and improving our infrastructure — while continuing to cut our deficit in a balanced way.
Second, it means fixing our broken immigration system so everyone plays by the same rules. The Senate has already passed a bill that would continue to strengthen our borders and grow our economy by bringing millions of undocumented immigrants out of the shadows and give them the chance to earn their citizenship by paying a fine and taxes, passing a background check, and going to the back of the line.
And third, it means passing a farm bill that ranching and farming families can rely on: one that protects working families and gives rural communities opportunities to grow.
We’ll be back in touch soon with more specific ways that every one of us can support this work. But for now, we should all have the facts on exactly what ending this shutdown means for all of us — today, and in the weeks to come.
Take a look at the President’s remarks from yesterday, and pass them along to the folks you think need to see them:
David Simas
Deputy Senior Advisor
The White House
@Simas44
P.S. — It’s been a while since we’ve talked about immigration reform, and how it would help make our economy a lot better. Let’s change that. Take a look at this whiteboard video our team put together. Then share it.
The White House • 1600 Pennsylvania Ave NW • Washington, DC 20500 • 202-456-1111
Simple “Give and Take” Economic Theories and Concepts
In Economics, the commercial balance or net exports of a country varies between the monetary value of exports and imports on the total output of economic GDP report over a certain period, measured in the currency of that economy…….in the relationship between a nation’s imports and exports.
The balance of trade is sometimes divided into both goods and services recorded as factsheet for the GDP (Gross Domestic Product.
Measuring the balance of trade can be problematic where actual supporting information of products are missing and does not reflect true recording of collection of data.
The discipline within the social sciences harmonizes smooth business exchange capacity of cooperation from the public sector to the Political negotiations that facilitates Government Management implementation, which having been undertaken between the international relations according to the constitutional order, the economy is fed positively both sides of the negotiating table, and in the course of times, the economy is provided with a booster to reinforce diversity, innovation, growth and expansion.
For any sustained and progressive business success that commands huge sums of money, there is need for a wider consultative professional input with a good comprehensive organizational development plan for a balanced economic standing. This is when the Government system is able to function and fizzles down to form automation of a revolving supply and demand exchange process of goods and services and these can only be successful under a regulated policy guideline by a Democratic Governing system in the respective Government service departments where Finance department is mostly crucial. Consequently, a Budget cannot be completed without Finance Department following tenets of the constitutional order of public mandate.
Challenges:
A functioning good Democratic Government system produces good Development agenda that provide a balanced opportunity favorable to all and that are balanced and are able to produce good results.The system that works well produces good result that improves social welfare in a short period of time and is able to transform economic progress, social stability with political principle guidelines that are simple, easy to understand and are made available with ease to all without any discrimination.
An imbalances of trade emerges when there are abuses or under-table deals of natural resources, illegal land usage and where local farmers are stolen from their cattles or shortchanged in cash crops sale that are corruptly exported in exchange for money put in politically correct network (money dipped in politicians pockets); who through graft and impunity, facilitate the bilateral business where public interest are under-cut and short-changed without value for their value.
In this case, no clear records are documented in the Government Exchequer ……. In otherwords, exchange of public goods in Trading transaction are supplemented, for example, with Blood Diamond and Gold in Congo, Titanium from Kwale, Pirating, Poaching, offshoring, currency and money laundering, exportation of sand to China, fish and water from Migingo and where human rights are violated and abused etc., the irregularities practices in Port Shipping transactions charcols and wood from the forests with the evasion of paying taxes to the Government are such processes that creates the imbalances and where GDP recorded are not justified nor are they realistic.
It is here where Peoples Government is blocked, short-changed or denied to provide opportunities to benefit the people, and where a network of business community instead shadow the Government function-ability by the engineered political machinery of conflict of interest, becomes a problem and in the long run, business community have power and control over the People Government from rendering services fairly to the people. In other instances, tender processes are made so complex earmarked for Special Interest, and Government structures for public service delivery is made so opaque, with job creation and business inequity-gap growing wider, while corruption and impunity are given lifespan to continue to thrive endlessly.
Politicians without discipline fail to observe the law.They take public subsidy as personal, which then ‘disappears’ into private and personal accounts without trace……..private and individual sector corruption find its way into public amenities, bankrupt public co-operation into private and personal transfer takeover thus, stripping off public assets and this is entirely corruption with impunity.
For private financial equity taking control of such for example, Central Bank Services to benefit itself in the largest source of profit, is to invest in a liquid firm with good public assets, avoid paying taxes, take management service fees at commercial rates, drain it, indebt it and then exit leaving a weaker and unstable Central Bank Institution that must be sustained and stabilized by public taxpayer finances to shoulder the expenses in ways.
Corruption, impunity with failed governance have contributed to extreme poverty, Scramble to Africas’ Land Grabbing, genocide with atrocities and are therefore costing Africa billions that are unaccounted for and are the greatest obstacle to Africas development with foreign direct investment sustained Partnership needed to improve good standing cooperation with meeting challenges at the International Market Place favorably along with the rest of the world.
Accountability and Transparency:
The balance of payment records clearly must show, the international flow of goods and services and other net income received from foreign countries. The import and export of goods and services, income received from investments, payments for debt service and private and public net remittance and transfers must be tabulated on record in the Current Account.
The capital account must record the international transactions of financial asset with liquidation flows. There must be clear statement for direct foreign private investments, foreign loan received from private banks, the grants and loans received from foreign governments, the grants and loans received from international, multilateral institutions like World Bank are included in the capital account.
The value of visible imports must equal to the value of visible exports. This shows the position of balance of trade. Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. Therefore, GDP per capita is not a measure of personal income …….. say if a few group of people are wealthy, that does not determine the wealth of the Nation. It is as a matter of fact, the size of our debt compared to our income worth from business transaction exchange that form GDP value……… and in the case of corruption taking tall order, the country’s GDP is ripped off by the Special Interest network and the Nations value goes down.
In other words, all goods and services must correspond to the value of the total product and Supply and Demand, must equal to people’s total Income and expenditures in capacity of buying things against things sold to the people. This is what determines the principle of GDP………..
Cash received by the Government must be accounted for and clearly made to balance with items for exchange bilaterally where, it must show the net outflow of foreign reserve. The errors and omissions adjusted and the statistical discrepancies documented. A country receives international cash reserve in the following forms:-
i. Hard currency in the foreign currency received has time and again found its way in the foreign bank account of individual politicians.
ii. Gold, Diamond, Titanium, oil, fish, water, Agricultural produce, and land to include poaching, have fetched billions of dollars to Corporate Special Business Interest network, that are untaxed but instead of bringing value, it brought pain and suffering to Africa with backwardness failing development progressiveness instead.
iii. The deposit with International Monetary Fund (IMF) and the World Bank foreign exchange on loans failed to capture poverty elimination but instead enriched politically correct network corruptly.
iv. Innovation, Science and Technology
v. Security
Government Run through Proxy of Special Interest:
Special Business Interest fight proxy war for control of the Government against the people.Corrupt politicians engage in conflict of interest whereby public interest is undermined, swopped and are replaced by Special Interest translating public mandate Government service delivery to special interest instead.A proxy server from public service delivery is then made to render Government Services prioritizing Network of Corporate Business Interest, where under conflict of interest; politicians make uncensored deals with the Government employees substitute to exploit people’s vulnerability and security.
Under Proxy politics, public security and mandate are endangered, undermined and are replaced by those of special interest Ally correctness who confederate Government services to network of a small group of selfish greedy special interest. The proxy political arrangement engage in uncensored, unregulated illegal and corrupt business undertaking through evasion of taxes, segregation, marginalization, manipulation, intimidation and threats; engage in illegal occupation of land, illegal mining, illegal fishing, illegal use of the water tower and shipments, illegal agriculture and with secret drug manufacture; free importation, unchecked transportation, illegal possession and use of public wealth, incorrect use and distribution of certain public resources and substances without going through any concrete legislative regulated government measures.
Subsequently, in the event where People’s Government is compromised, it is held hostage anytime Special Interest is challenged in ways and means.Since they have created autonomy of power by proxy, they have made the Government a Special Interest preserve where, when it comes to matters of “The Budget” it is their way or the highway………In other words, the budget is made according the Special Interest prescribed proposal and not according to public mandate.Special Interest will fight tooth and nail to have their way ……..hoarding and taking more than they need from the Government……..(hoarding is a behavior associated with lack of organization and disorder to health risks, that impaired good functioning of a system and load economic burden that ultimately causes adverse effects on the stability of a Nation, the Community, friends, family members and consequently affects the whole world). and thereby deny fundamental basic rights of people to a point people would rather die and extinct than their comfort zone of ho
arding is tampered with or reasonably have Government functionability shared for common good of all.
Special Interest Control of the Government Institution:
A Nation is said to be Sovereign when it honors, values and respect principles of good Democratic Rule of Law and where service to people is the priority placed top on the agenda of governance.
In the same way, God gave man freedom, dominion, Institution of marriage and possession to own and control their bodies and commanded them to love, protect, preserve and multiply to replenish and subdue the earth.
Recognizing that, the people formed our government in democratic process by design to function and serve peoples interest in consultation, exchange and in mutual sharing, and by the people, people own the Government.The three elements thus, dominion, Institution and possession appear outstandingly very clear, the fundamentals that which constitute the very definition of sovereignty.
To undercut it by special interest proxy to serve a small minority of group and taking away survival and livelihood of many is in the same vein committing a serious crime an abomination of violation and abuse of human rights to live a just, peaceful, honorable and dignified life.Something must change or all are destined to lost leaving majority people more vulnerable, Susceptible and skeptical to living a life that are of meaning.
In Conclusion:
We cannot throw our hands up in despair and quit or we keep voicing our disapproval but fight to eliminate Corruption starting at the top where the whole of Africa is rife with corruption.
A sense of awareness demands that people must begin to demand their rights of good governance with concerted pressure from both the UN, World Bank and IMF demanding report; because, if policy are breached a culture of impunity spreads pretty quickly and peace is threatened, a position we have all found ourselves today.
If Africa is to be saved from this infection, the endemic presence of corruption and impunity must be dealt with by all people of the world united and the community supported to work to improve their lives by ways and means to create jobs and improve their Social Welfare Organization through Community Partnership Development Agenda.
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioecnomicforum50.blogspot.com
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YAHWEH [ THE MAGIC BAND INTERNATIONAL ]
Published on Sep 20, 2013
PRAISE THE LORD
Voice of America (Washington, DC)
Africa: Survey Lists 55 Billionaires in Africa
By Peter Cox, 10 October 2013
Johannesburg — There are at least 55 billionaires on the African continent. That’s according to the Africa’s Richest survey from Venture Africa, an Africa-based business magazine.
There are 10 countries represented on the list, with Nigeria leading the way with 20 billionaires, South Africa with nine and Egypt with eight.
The combined wealth of Africa’s 55 billionaires is $143.88 billion, and the average wealth is $2.6 billion.
The richest man on the list is Aliko Dangote, whose investments in manufacturing three decades ago have grown into a $20.2 billion net worth. He is followed by South African investor Allan Gray and Nigerian oil and telecom businessman Mike Adenuga.
Of Nigeria’s billionaires, 13 have significant or total investments in the oil business, and mining is a sector tapped by many on the list across the continent.
The Venture Africa survey has more than triple the number of billionaires reported by previous lists. Forbes Magazine noted only 16 billionaires in Africa in late 2012.
Venture Africa’s Publisher Chi Chi Okonjo said his magazine’s Nigerian and South African base help with having more information than some lists – which is why his survey is more comprehensive.
“We know, because we have people on ground, some of these people are actually people we know personally,” Okonjo explained. “So we know their assets… .That’s the difference… .You really need to be on ground to know what’s happening. So we’re able to provide much more detailed information.”
His editorial staff calculated wealth through publicly held shares, privately held companies, investment bankers, financial analysts and other financial barometers.
Okonjo said Africans also tend to be quiet about their wealth.
“Wealth is still somewhat taboo in Africa. People prefer discuss what they are doing for their communities rather than how much money they have. It’s just a cultural thing,” he noted. “So people don’t like to discuss how much money they have or how much they’ve amassed.”
Johannesburg — There are at least 55 billionaires on the African continent. That’s according to the Africa’s Richest survey from Venture Africa, an Africa-based business magazine.
There are 10 countries represented on the list, with Nigeria leading the way with 20 billionaires, South Africa with nine and Egypt with eight.
The combined wealth of Africa’s 55 billionaires is $143.88 billion, and the average wealth is $2.6 billion.
The richest man on the list is Aliko Dangote, whose investments in manufacturing three decades ago have grown into a $20.2 billion net worth. He is followed by South African investor Allan Gray and Nigerian oil and telecom businessman Mike Adenuga.
Of Nigeria’s billionaires, 13 have significant or total investments in the oil business, and mining is a sector tapped by many on the list across the continent.
The Venture Africa survey has more than triple the number of billionaires reported by previous lists. Forbes Magazine noted only 16 billionaires in Africa in late 2012.
Venture Africa’s Publisher Chi Chi Okonjo said his magazine’s Nigerian and South African base help with having more information than some lists – which is why his survey is more comprehensive.
“We know, because we have people on ground, some of these people are actually people we know personally,” Okonjo explained. “So we know their assets… .That’s the difference… .You really need to be on ground to know what’s happening. So we’re able to provide much more detailed information.”
His editorial staff calculated wealth through publicly held shares, privately held companies, investment bankers, financial analysts and other financial barometers.
Okonjo said Africans also tend to be quiet about their wealth.
“Wealth is still somewhat taboo in Africa. People prefer discuss what they are doing for their communities rather than how much money they have. It’s just a cultural thing,” he noted. “So people don’t like to discuss how much money they have or how much they’ve amassed.”
Kenya: Sh300 Billion Govt Expenses Unaccounted in 2011-12
By Simon Ndonga, 9 October 2013
Photo: Anthony Morland/IRIN
Kenyan government unable to account for Sh300 billion in the 2011-2012 financial year (file photo).
Nairobi — A report from the Auditor General’s office shows that Sh338 billion of money spent by the government in the financial year 2011/2012 cannot be accounted for.
According to the document, only Sh55.2 billion of the Sh920 billion the government spent can be accounted for.
Auditor General Edward Ouko said that more than half of the statement errors were due to unsupported expenditure, failure by civil servants to surrender imprests, unauthorised spending and uncleared balances.
“A total of 252 financial statements were audited and only six percent had clean (unqualified) audit reports, 51 percent had qualified opinion reports, 10 percent had disclaimer of opinion reports and 33 percent had disclaimer of opinion reports. A trend that is worrying is that 33 percent of the financial statements or 83 financial statements cannot be regarded as having been properly accounted hence a disclaimer of opinion,” he stated.
In the report, Ouko explained that there were no supporting documents for Sh561 billion which could have resulted in the misuse of the funds.
“Of major concern is the poor maintenance of accounting records. As in the previous years and as also indicated in my report, there is weak and inadequate maintenance of accounting records observed across a number of ministries and departments during the year,” he said.
He said that in the 2011/2012 year, many ministries and departments prepared their statements on cash basis, making it impossible to tell what the government owns and owes.
“In addition, the ministries and departments continued to prepare their respective financial statements on Cash Basis of accounting as instructed by the Treasury. This implies that capital assets are expensed as a result of which Statements of Assets and Liabilities as at the end of each financial year do not show a complete and true and fair view of the ministry’s or department’s assets and liabilities,” he said.
The Auditor General further explained that he was not able to establish whether expenditures reflected in these statements were incurred lawfully and in an effective way as required by Article 229(6) of the Constitution.
“This hence means that were the accounts with disclaimer of opinion be treated as accounts with no proper justification, then by implication 33pc of the total actual expenditure for 2011/2012 of Sh920bn can be regarded as having not been properly accounted for,”
He also indicated a shortfall in development revenue for the year under review.
“The revenue accounts demonstrate a shortfall of development revenue by 49 percent which translated to approximately Sh26 billion. This under collection was due to non-release of funds by development partners and low absorption of funds by projects and programmes,” he said.
He stated that the revenue statements showed substantial balances of revenue amounting to approximately Sh900 million not having been received at the Exchequer Account.
“The discrepancies are due to unexplained and unreconciled differences between the statements balances and the exchequer records maintained at Treasury,” he said.
Ouko said that the exchequer account showed a balance of Sh1.1 billion as at 30 June 2012 and an over issue of Sh6 billion to the Ministry of Education (recurrent vote).
He observed that the over issue arose due to the withdrawal of Sh7 billion from the Consolidated Fund on 21 June 2012, for Free Primary and Free Day Secondary Education.
“However, no evidence has been provided for audit confirmation that Parliamentary approval for the additional expenditure was granted as required under article 223 of the Constitution,” he said.
Kenya: Corruption Killing Job Creation in Kenya, Says New World Bank Report
By Solomon Kirimi, 6 December 2012
Photo: Lauren Everett/AllAfrica
Corruption report box in Kenya.
Corruption accounts for loss of resources enough to create 250,000 jobs in Kenya annually, the World Bank has said.
In its latest economic update titled ‘Kenya at Work’, the report says an enterprise survey found out that firms pay up to 12 per cent of value of government contracts to win them and four per cent value of their sales is directed towards bribe payment.
Total kickbacks paid on government contracts are approximated at Sh36 billion and another Sh69 billion is paid in form other related bribes.
“Kenya stands out for it’s business related corruption than any other country in the world,” the report says.
Currently only about 50,000 out of an estimated 800,000 youths leaving school annually get employment.
“Nepotism, tribalism, sexual harassment and corruption determine who gets these jobs leaving the rest to find their own means of survival,” said World Bank country director Johannes Zutt.
Zutt said in Kenya the main barriers to creation of jobs through investments are corruption, access to electricity, and poor infrastructure. The World Bank downgraded its earlier prediction of a 5 per cent GDP growth for Kenya to 4.3 per cent, one per cent lower that 2011, but maintained its 2013 projection at 5 per cent.
The report shows Kenya’s economy is stable but vulnerable due to the expected general election shocks, transition to a new governance system and the Euro crisis.
“Kenya’s economy is out of balance and the external position has become even more vulnerable as the country’s current account deficit has skyrocketed and could reach 15 per cent of GDP in 2012,” the survey notes “This is among the worst external balances in the world and poses a significant risk to Kenya’s economic stability.”
Kenya’s growth remains below the African average and substantially below that of its East Africa Community partners with an average of 6 per cent annual growth.
Over the last decade, Kenya’s imports have grown faster than its exports since mid-2011, with earnings from top four exports not enough to pay for oil imports.
The survey recommends that Kenya should increase its manufacturing capacity and help the high number of people leaving family farming activities to create agricultural processing for export, in order to increase employment opportunities.
Report: Corruption, weak governance costing Africa billions
10 May 2013 13:07Lynley Donnelly
The African Progress Panel has revealed its assessment of the challenges that still face many countries in developing their oil and mineral wealth.
Kofi Annan. (AFP)
Combating international tax avoidance and evasion, corruption and weak governance are crucial if Africa’s people are to benefit from the continent’s vast natural resource wealth, former United Nations secretary general and chair of the African Progress Panel Kofi Annan said on Friday.
According to the panel’s 2013 African Progress report at the World Economic Forum on Africa taking place in Cape Town, the continent is losing more through illicit financial outflows than it receives in aid and foreign direct investment.
It found that trade mispricing, or losses associated with the misrepresentation of export and import values, alongside other illicit outflows cost the continent $38.4-billion and $25-billion respectively between 2008 and 2010.
Annan called for a rule-based global system on tax transparency to be developed with the G20.
“All foreign-owned companies should be required to disclose the ultimate beneficiaries of their profits,” he said.
Switzerland, the UK and the US – all major conduits – should signal their intent to clamp down on illicit financial flows Annan said.
He also extended this call to players from other developing nations who have become increasingly active in Africa in the oil, gas and minerals realm.
Poor governance of state companies
“Major investors in African extractive sectors such as China and emerging investors such as Brazil must also engage,” he said.
The report raised concerns over the structure of investment activity by foreign companies operating in Africa.
It was characterised by the extensive use of offshore-registered companies and low tax jurisdictions, and in some cases the complex use of shell corporations.
“These arrangements come with weak public disclosure and extensive opportunities for tax evasion,” the report said.
The revenues generated for major companies in many cases dwarfed the gross domestic product (GDP) of the countries they operate in.
In 2012 Shell’s revenues sat at $467.2-billion. This is compared to Nigeria’s GPD of $244-billion, Angola’s GPD of $104.3-billion and Gabon’s GDP of $17.1-billion.
Poor governance of state companies and assets are also associated with extensive revenues losses, the report found.
In 2012 Angola was unable to account for $4.2-billion, according to the report. Nigeria meanwhile was estimated to have lost $6.8-billion between 2010 and 2012.
‘We are not poor’
But nowhere had a country lost out as much from this practise than the Democratic Republic of Congo (DRC), the report found.
It analysed five privatisation deals involving the sale of state-owned assets to foreign investors operating through offshore companies registered in the British Virgin Islands and other jurisdictions. The panel estimated that the losses sustained in these deals, through the under valuation of assets, was $1.3-billion – more than double the DRC’s health and education budget.
This was in a country with the sixth highest child mortality rate, endemic malnutrition and seven-million children, out of a total of 11.2-million, not attending school.
These under-pricing activities however generated returns of around 500% for the offshore companies involved.
African countries needed to pursue greater transparency in the management of their resources according to Annan.
“We are not poor, we need to manage our resources better,” Annan said.
“African governments can do better.”
Transparent access to the details
States had to have “very clear rules” relating to how companies can bid for concession in their country, including using public auctions that gave the public transparent access to the details of the bidders and what they pay he noted.
Fellow member of the African progress panel, Zimbabwean-born businessperson Strive Masiyiwa said the arrival of other developing nations on the continent such as China, Brazil and India had been “a positive game changer”.
“But we also need to call on them to try … help us in creating the equity we are looking for,” he said.
It would be good if these new players introduced legislation in the vein of the US’s Foreign Corrupt Practises Act and Britain’s anti-bribery laws to help achieve this he said.
Guest
5 months ago•20
As an African country, we may not be poor, but our levels of corruption reveal just how poor of heart our leaders are, as they continue to milk the treasury, while keeping the citizens in poverty.
Alisdair Budd
5 months ago•00
Perhaps you’d like to go and talk to the Chinese Diamond Miners about this:
http://www.theindependent.co.z…
And also the Zim Minister of Mines and his possession of large amounts of cash, property, cattle and businesses from untraceable sources:
This report provides an in-depth analysis and reexamination of the theory explored by authors of the Federal Reserve Bank of Boston in 2010 that credit cards and credit card rewards programs lead to a regressive transfer of merchant costs at the point of sale. It examines how sensitive the Boston Fed staff report findings are to variations in the underlying assumptions and modifications to the accounting framework used.
From: isaac nkoroi
Subject: FUNDING FOR INNOVATIVE TRADE PROJECTS IN EAC COUNTRIES (KENYA, UGANDA, TANZANIA, RWANDA & BURUNDI)
TradeMark East Africa Challenge Fund (TRAC) invites the private sector and the civil society to apply for grant funding to support innovative trade projects that can boost regional trade in the East African region and the region’s trade with the rest of the World.
Best,
Isaac
—
For Jobs, Tenders, Business Opportunities, join https://www.facebook.com/Opportunities.Kenya
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advert-TRAC.pdf
FUNDING FOR INNOVATIVE TRADE PROJECTS IN EAC COUNTRIES (KENYA, UGANDA, TANZANIA, RWANDA & BURUNDI)
TradeMark East Africa Challenge Fund (TRAC) invites the private sector and the civil society to apply for grant funding to support innovative trade projects that can boost regional trade in the East African region and the region’s trade with the rest of the World
The Grants of between US$250,000 to US$350,000 per project will be offered to private companies, private sector organizations and civil society organizations on a 50% matching basis for private companies and private sector associations and 70% for civil society organizations. The grants will be awarded under three Windows
Window one: Business innovations that will increase Trade. The project should be innovative, aim at increasing cross border trade, has great potential for social welfare gains and has potential for commercial viability
Window two: Catalyzing innovation in services that enable cross border trade. The project should be innovative and should aim at reducing the cost of trade in East Africa. Potential beneficiaries will include firms operating in Finance, ICT, Insurance, Professional, and logistics services. Projects will be required to demonstrate the potential to increase access to and/or reduce the cost of services needed to trade across borders
Window three: Innovative ways of gathering evidence and mobilizing public opinion.TRAC will support innovative projects that can gather evidence of the way barriers to trade harm the public interest and mobilize public support for reforms that will lead to greater regional integration.
The TradeMark East Africa Challenge Fund (TRAC) is a project funded by TradeMark East Africa. TRAC invests in innovative projects that can boost regional trade in the East Africa Community (EAC) and the region’s trade with the rest of the world. Innovative projects, proposed by private firms that have the potential to boost cross-border and international trade will be eligible for funding. Innovative projects that benefit large number of men and women and promote climate resilience and environmental sustainability will be given preference. Women owned or managed businesses are particularly encouraged to apply
The guidance for the technical evaluation panel and the online application form are available from our website:
WWW.TRAC-FUND.COM
Online applications shall be received from 7th
October 2013 and close on 18th
November 2013.
For inquiries, clarification and further information, please contact us at: Email: info@trac-fund.com
House Speaker John Boehner, R-Ohio, speaks to members of the media after meeting with President Barack Obama at the White House in Washington, Wednesday, Oct. 2, 2013. Republicans insisted they wanted to shut down the nation’s 3-year-old health care overhaul, not the government. beginning with Speaker John Boehner’s refusal to permit the House to vote on Senate-passed legislation devoted solely to reopening the government.
“Take a vote,” Obama urged Boehner in his speech. “Stop this farce and end this shutdown right now.”
It might not be so simple, however. Moderate Republicans have said they think they could provide enough votes to join with minority Democrats and push a bill through the House reopening the government with no restrictions on the health care law.
Common sense dictates that, President Obama is within the margin prerogative of the law, to serve people and lead Responsibly with Integrity, and from day one, he remained committed and focused doing what he promised he will do and as obligated and mandated by the American people accordingly.
In an interview afterward, Senate Minority Leader Mitch McConnell, R-Ky., scoffed at the president’s stance.
“He can’t get his way exactly the way he wants it because he doesn’t control the entire government,” McConnell said on CNBC’s “The Kudlow Report.”
People are bored knowing that unforeseen consequences are now getting the feel of Government Shutdown. As far as we are all concerned therefore, the few special interest Congressional Republican members purposefully exempted themselves from the law of land against Obamacare which is a done deal and have no business in the business of the house on BUDGET.
The most basic rule is that all Americans, with only a few exceptions, must have health insurance, or pay a penalty. People who already have insurance, through an employer or any other source, already comply with the law. All Americans must comply with the law and no one is above the law. President Obama has right to take legal action against those trying to undermine the law. It will be illogical if the Congressional members earn salary during this Government shutdown. Being the ones who put us on this mess, it is not right that the disadvantaged pushed into poverty while the rich have a fields day.
Speaker Boehner is sending a clear message to America that America is divided between the halves and the halve-not and that the law is predominantly for those rich special interest who they pledge royalty to instead of the People and Government of America. This is unacceptable…………..If John Boehner disputes this analogy, then, he and his GOP fellows will open the Government unconditionally without any more waste of time and pass the Budget to avoid default.
As for President Obama, the law doesn’t require him or any other federal employees to do anymore negotiations on Obamacare. The law on Obamacare has already kicked-in and taken hold in the Government system…..since, it has taken effects from October 1st 2013. In fact, when Obama leaves office in 2017, it is Healthcare Reform which is his biggest credential achievements and if he wishes, that shall remain his landmark “Obamacare” success story for real. Obama will have jazzed-up and stroked a fair favorable deal for both the rich and poor alike. Therefore, Obamacare is a done deal………
When will Speaker Boehner get his fact right???
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com/
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Obama Pins Government Shutdown on Boehner
Published on Oct 3, 2013
President Barack Obama says House Speaker John Boehner is the only thing standing in the way of reopening the federal government. Obama is speaking at a small business just outside of Washington on the third day of the shutdown. (Oct. 3)
During Speech, Obama Pins Shutdown on Boehner
http://www.youtube.com/watch?v=cJGHcj8GU1U
Published on Oct 3, 2013
President Obama traveled just outside the Beltway on Thursday to Rockville, Maryland, to give a speech highlighting the challenges posed by the shutdown and a potential debt ceiling default on the private sector. “Stop this farce,” the president demanded of House Republicans, “and end the shutdown right now.”
Obama got to his key point quickly: The effects of the shutdown are much deeper than disputes over memorials on the National Mall. “Those hundreds of thousands of Americans, a lot of whom live around here,” he said, “don’t know when they’re going to get their next paycheck. That means stores and restaurants around here don’t know if they’ll have as many customers.” And further: farmers aren’t getting loans. Children can’t go to Head Start. “The American people elected their representatives to make their lives easier, not harder,” Obama said. “There’s one way out of this reckless and damaging Republican shutdown: Congress has to pass a budget that funds our government with no partisan strings attached.”
Catastrophic Consequences of a U.S. Default Explained
By Matt Nesto
October 4th 2013
By Matt Nesto | Breakout – 3 hours ago
As we close out the first week of the government shutdown, a bigger and even more toxic disaster is creeping into the fray that could make the contentious budget battle look like a slap fight. The Treasury Department said Uncle Sam will be broke by October 17th unless something is done. Treasury secretary Jack Lew hammered home that point Thursday by releasing an unusually ominous statement that warned of catastrophic risks to the economy.
House Speaker John Boehner has said he won’t let the government default on its debt, but until steps are taken to raise the nation’s debt ceiling, the possibility of default is still theoretically alive.
“If they seriously default on the debt, what we’re really talking about is a depression,” says veteran financial sector analyst Richard Bove, VP of research at Rafferty Capital Markets. In the attached video he explains how the fallout would be a lot worse than the recession suffered in 2008 and the aftershocks would be felt for at least a decade.
“The first thing you have to do is look at who holds the debt,” Bove says of the $16.7 trillion of bonds the U.S. currently has outstanding. “The first, biggest owner (of U.S. debt) is the social security fund, so you’d have all of these people who are receiving social security payments who now have to question whether they’ll get their payments.”
Clearly, that would cause a huge disruption to millions of Americans. But Bove says that is only the beginning since the second biggest holder of Treasuries (at about 12% of the total) is the Federal Reserve, which has “91% of its assets backed by U.S. government debt.”
If the value of those assets were to decline, which they indisputably would in a default, Bove says the net effect would be that “we have nothing of value backing the dollar.”
They’re actually “Federal Reserve Notes” as well as the number one asset of choice held in the reserves of governments and businesses all over the world. A plunge in Treasuries would also devalue the dollar, which would instantly make everything we buy more expensive, and in turn destabilize countries and economies all over the world.
“Eleven-percent of all U.S. debt is owned by the Chinese,” he says. “That $1.4 trillion represents about a third of the reserves of the People’s Bank of China, so what we’ve now said to the PBOC is, ‘Watch out, we may hit the value of a third of your assets and you can’t do anything about it.'”
And this isn’t even half of it.
As Bove explains, money market funds, which are used by virtually every person with a savings or investment account, are also “heavily loaded with Treasuries.” So are most bond funds and so-called balanced funds (growth and income funds). A default on U.S. debt would not only cause money funds to “break the buck” –not be able to pay 100-cents for each dollar invested)– but would also cause forced selling by countless other funds that are mandated to immediately sell any asset that has defaulted.
“That could easily put $750 billion of Treasuries on to the market” Bove says, inferring that rates interest rates would also spike, and normal borrowing/lending transactions would end.
Speaking of banks, the U.S. banking industry holds over a trillion dollars worth of Treasuries and another trillion dollars of government issued mortgage-backed securities, Bove says. If those bonds were to go down in value, he says the banks would also have to “write down the value of those assets and, in essence, wipe out their equity.” It would make the banks insolvent.
To summarize, Bove asserts that a default is unthinkable because it would trigger a huge reduction in the value of U.S. debt, which would go beyond disrupting social security payments. A default would upend money markets, destroy bond funds, slam the brakes on lending, cause interest rates to spiral, make our banks insolvent, and deal a blow to our foreign trading partners and creditors around the globe; all of which would throw the U.S. and the world into economic disarray.
Dems say it’s time for GOP to unite, end shutdown
Obama cancels Asia trip as Democrats pressure GOP to ‘come together’ to end shutdown
By Andrew Taylor and Nedra Pickler, Associated Press |
Photo
House Speaker John Boehner of Ohio walks to a Republican strategy session on Capitol Hill in Washington, Friday, Oct. 4, 2013. Boehner is struggling between Democrats that control the Senate and GOP conservatives in his caucus who insist any funding legislation must also kill or delay the nation’s new health care law. Added pressure came from President Barack Obama who pointedly blamed Boehner on Thursday for keeping federal agencies closed. (AP Photo/J. Scott Applewhite)
Fri day, October 4th 2013
WASHINGTON (AP) — President Barack Obama decided to stay home from economic summits in Asia as Democrats stepped up pressure on congressional Republicans to rein in their tea party faction and reopen the government with no strings attached.
House Republicans said that with Congress and the president in town this weekend, now is the perfect time to start negotiating a plan to reopen the government.
“All I’m asking for is let’s sit down, like the American people would expect us, and talk to one another about getting the government open and dealing with the significant problems that we face,” House Speaker John Boehner, R-Ohio, told reporters Friday. “This isn’t some damn game.”
GOP leaders said Friday the House will be in session Saturday so that Republicans can continue passing bills that would reopen selected parts of the federal government. The White House responded by issuing fresh veto threats, saying Congress should reopen the entire federal government.
The Labor Department, meanwhile, did not issue the monthly employment report for September that was due Friday because of the shutdown.
The White House called the partial government shutdown that entered its fourth day Friday “completely avoidable” and complained the shutdown was interfering with the president’s efforts to promote trade and U.S. influence in emerging world markets.
Democrats pointed to disagreements within the Republican Party, where reluctant congressional leaders were prodded into a showdown over government funding and Obama’s health care law by rowdier conservatives, such as Texas Sen. Ted Cruz.
To get the government up and running again, “it will take some coming together on the Republican side,” said the House’s lead Democrat, Rep. Nancy Pelosi of California.
“It’s very hard to negotiate with the Republicans when they can’t negotiate with themselves,” Pelosi said Friday.
Senate Chaplain Barry Black opened Friday’s business with a plea for God to “give our lawmakers the vision and the willingness to see and to do your will.”
“Remove from them that stubborn pride which imagines itself to be above and beyond criticism. Forgive them for the blunders they have committed, infusing them with the courage to admit and correct mistakes,” Black said.
Obama criticized Boehner for not bringing up a vote to finance the full reopening of the government without conditions.
“This shutdown could be over today,” Obama said Friday as he stopped for lunch with Vice President Joe Biden at a local sandwich shop near the White House. “We know there are votes for it in the House.”
Boehner and other Republicans put the blame on Obama. They say he should recognize the flaws of “Obamacare” and negotiate solutions as part of a deal to end the shutdown that forced the furlough of some 800,000 workers, more than a third of federal civilian employees.
Boehner said Obama was being “irresponsible.”
On Friday, the Republican-led House was keeping up a drive to finance certain agencies and programs on a piecemeal basis — a strategy rejected by Obama and the Democratic-led Senate.
“We are not picking winners and losers,” said Rep. Marsha Blackburn, R-Tenn. “I think what we are doing is exercising stewardship over the taxpayers’ dollars. …I’m ready to go to work today and get it done.”
The House planned a vote to fund a popular program providing food aid to pregnant women and their children, as well as ongoing disaster relief.
Furloughed federal workers would get retroactive pay under a bill the House plans to vote on Saturday. Some top Democrats have supported that idea alongside Republicans.
Obama had been scheduled to leave Saturday for economic summits next week in Indonesia and Brunei. His decision to cancel those plans underscored how entrenched both sides were in a partisan showdown with no end in sight.
“The cancellation of this trip is another consequence of the House Republicans forcing a shutdown of the government,” White House press secretary Jay Carney said in a statement. “This completely avoidable shutdown is setting back our ability to create jobs through promotion of U.S. exports and advance U.S. leadership and interests in the largest emerging region in the world.”
Lawmakers said the shutdown that began Tuesday when the government began its new budget year seemed to be quickly merging with a more critical showdown over the nation’s expiring line of credit, raising the stakes for the still-fragile economy.
Obama and his Treasury Department said failure to raise the nation’s borrowing limit, expected to hit its $16.7 trillion cap in mid-October, could precipitate an economic nosedive worse than the recent Great Recession. A default could cause the nation’s credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket, according to a Treasury report.
Obama cataloged a litany of troubles that could be caused by the failure to raise the debt ceiling, from delayed Social Security and disability checks to worldwide economic repercussions.
“If we screw up, everybody gets screwed up,” he said.
The speaker’s office reiterated Boehner’s past assertion that he would not let the government default on its debt. “But if we’re going to raise the debt limit, we need to deal with the drivers of our debt and deficits,” his spokesman, Michael Steel, said. “That’s why we need a bill with cuts and reforms to get our economy moving again.”
Pelosi spoke on “CBS This Morning,” and Blackburn spoke on MSNBC.
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Follow Andrew Taylor on Twitter at https://twitter.com/apandrewtaylor and Nedra Pickler at https://twitter.com/nedrapickler
Associated Press – 2 hours 8 minutes ago
Analysis: Republicans get opposite of stated goals
By DAVID ESPO | Associated Press
House Speaker John Boehner, R-Ohio, speaks to members of the media after meeting with President Barack Obama at the White House in Washington, Wednesday, Oct. 2, 2013. Republicans insisted they wanted to shut down the nation’s 3-year-old health care overhaul, not the government. They got the opposite, and now struggle to convince the public that responsibility for partial closure of the federal establishment lies with the President Barack Obama and the Democrats. (AP Photo/Pablo Martinez Monsivais)
Photo
In this Sept. 25, 2013, photo, Sen. Ted Cruz, R-Texas, emerges from the Senate Chamber after his overnight crusade railing against the nation’s new health care law at the Capitol in Washington, Wednesday, Sept. 25, 2013. Republicans insisted they wanted to shut down the nation’s 3-year-old health care overhaul, not the government. They got the opposite, and now struggle to convince the public that responsibility for partial closure of the federal establishment lies with the President Barack Obama and the Democrats. (AP Photo/J. Scott Applewhite)
WASHINGTON (AP) — Republicans insisted they wanted to shut down the nation’s 3-year-old health care overhaul, not the government. They got the opposite, and now struggle to convince the public that responsibility for partial closure of the federal establishment lies with President Barack Obama and the Democrats.
There’s ample evidence otherwise, beginning with Speaker John Boehner’s refusal to permit the House to vote on Senate-passed legislation devoted solely to reopening the government.
In the days leading to the impasse, Sen. Ted Cruz of Texas said he would do “everything and anything possible to defund Obamacare,” including a filibuster against legislation to prevent a partial closure of the federal government.
In the House, Rep. Jack Kingston told reporters his Georgia constituents would rather have a shutdown than Obamacare, and Rep. Tim Huelskamp added recently that in his Kansas district, “If you say government is going to shut down, they say, ‘OK, which part can we shut down?'”
Ironically, Republican leaders urged the rank and file not to link a defunding of Obamacare to federal spending for fear the unavoidable outcome would be a shutdown that would harm the party politically.
Yet Boehner, who survived a conservative-led attempt on his tenure in January, and Senate Republican leader Mitch McConnell, who faces a primary challenge from a tea party-backed rival in Kentucky, were unable to prevail. Instead, they were steamrolled by Cruz, his allies in Congress and Heritage Action, Club for Growth, the Tea Party Express and other groups that have used the issue to raise funds.
The strategy in effect, Republicans negotiated exclusively with themselves in the days leading to the shutdown as they sought the demise of “Obamacare.”
First, they passed legislation demanding the health care law be defunded in exchange for a bill providing essential government funding.
When the Senate rejected that, they scaled back.
Instead, they sought a one-year delay in the law, combined with the permanent repeal of a tax on medical devices and creation of new barriers to contraceptive coverage for women purchasing insurance.
That, too, was torpedoed in the Senate.
The next GOP demand was for a one-year delay in the requirement for individuals to purchase coverage, along with a provision that would oblige the president, vice president and members of Congress and their aides to purchase insurance under the same system as the rest of the country without receiving the customary employer contribution from the government, for which they work. The principal impact of that is to raise the cost of insurance dramatically for thousands of congressional aides and political appointees of the administration.
That, too, fell in the Senate.
There have been ideological retrenchments, as well.
Despite their long-held positions against government mandates, House Republicans agreed beginning last week to leave in effect requirements in the health care law they have refused to embrace in the past. Among them is a requirement for insurers to cover individuals with pre-existing conditions and another to allow children up to age 26 to remain on their parents’ plans.
All are politically popular, although rarely mentioned by Republican lawmakers who say the country clamors for a total repeal of the law.
Despite pledging in the 2010 campaign to “repeal and replace” the law known as Obamacare, Republicans have yet to offer a comprehensive alternative. Efforts to create one have been hampered by opposition from conservatives to some of the mandates they tacitly agreed last week to leave in effect.
Conceding as much, Rep. Trent Franks, R-Ariz., said that as a conservative, he had often found during Obama’s presidency that his choice was “between something bad or (something) horrible.”
Republican unity, so valuable in pushing to reduce spending in the past three years, shows signs of fraying.
Even before the shutdown began, some moderates said it was time to shift the fight against Obamacare to another arena and allow the government to remain open. A handful of conservatives, backed by outside groups, rebelled when GOP demands for changes in the law were scaled back.
“I feel like we’re retreating,” said Rep. Phil Gingrey, R-Ga., while the conservative group Heritage Action said it opposed the last in a series of GOP maneuvers because it fell short of “fully defunding the president’s failed law.”
Restlessness grows.
In the Senate, Sen. Bob Corker, R-Tenn., says routinely, “We’re in a box canyon,” and Sen. John McCain of Arizona observed, “We can’t win” when it comes to using a federal spending measure to squeeze out concessions on health care.
Ironically, Obama and Senate Democratic leaders have said repeatedly in recent days they are willing to negotiate changes in the health care law — on another day and another bill.
Even Democrats privately concede that a tax on medical devices isn’t likely to survive long, given that 79 members of the Senate backed its repeal on a nonbinding test vote last spring.
What survives is the expansion of the health care law that was passed in 2010, the opportunity for uninsured Americans to obtain private insurance at a cost oftentimes subsidized by the government.
___
EDITOR’S NOTE — David Espo is chief congressional correspondent for The Associated Press.
An AP News Analysis
Shutdown in 3rd day with bigger trouble looming
Government shutdown in 3rd day and bigger worry looms ahead for Obama, Hill leaders
By Alan Fram, Associated Press | Associated Press –
WASHINGTON (AP) — President Barack Obama laid the blame for the government’s partial shutdown at the feet of House Speaker John Boehner on Thursday, escalating a confrontation that is running the risk of a potentially damaging clash over the nation’s borrowing authority.
The Treasury Department warned that a deadlock over raising the nation’s debt limit could touch off a new recession even worse than the last one that Americans are still recovering from. Worry about prospects for resolving the debt question within the next two weeks deepened as the shutdown standoff dragged on.
The shutdown showdown grew more personal Thursday.
Speaking at a construction company in Washington’s Maryland suburbs, Obama cast the House speaker as a captive of a small band of conservative Republicans who want to extract concessions in exchange for passing a short term spending bill that would restart the partially shuttered government.
“The only thing preventing people from going back to work and basic research starting back up and farmers and small business owners getting their loans, the only thing that is preventing all that from happening right now, today, in the next five minutes is that Speaker John Boehner won’t even let the bill get a yes or no vote because he doesn’t want to anger the extremists in his party,” Obama said.
Boehner answered by batting blame back toward Obama and his “my-way-or-the-highway approach.” Boehner said that if the president would negotiate to fix flaws in “Obamacare,” the shutdown could end.
“The president’s insistence on steamrolling ahead with this flawed program is irresponsible,” said Boehner, R-Ohio.
Majority Leader Eric Cantor said the House would continue on its course of passing separate bills to remedy “situations that are in critical stages” because of the partial government shutdown that began Tuesday.
The House was expected to vote to for more money for National Guard and Reserves and for veterans programs during the day, and officials said legislation to help Head Start and possibly the WIC (Women, Infants and Children program) could soon be drafted, as well.
Senate Democrats made clear they will not agree to reopen the government on a piecemeal basis. “You can’t fall for that legislative blackmail or it will get worse and worse and worse,” said Sen. Chuck Schumer of New York.
Senate Democrats and Obama said the House must send them a measure that would restart all of government with no strings attached.
“Take a vote,” Obama urged Boehner in his speech. “Stop this farce and end this shutdown right now.”
It might not be so simple, however. Moderate Republicans have said they think they could provide enough votes to join with minority Democrats and push a bill through the House reopening the government with no restrictions on the health care law.
But under pressure from House GOP leaders, they failed to join Democratic efforts on Wednesday aimed at forcing the chamber to consider such legislation.
In the Senate, GOP Leader Mitch McConnell of Kentucky said the problem was “Democrats’ refusal to apply simple fairness when it comes to Obamacare.”
Democratic and Republican leaders in the Senate blocked each other’s proposals for addressing the stalemate Thursday. Democrats rejected GOP proposals to reopen the national parks, speed up processing of veterans’ claims and restart some medical research that’s been put on hold. Republicans stymied a Democratic plan to bring the entire government back to work.
“Obviously tea party Republicans don’t really want a way out of this government shutdown. They like it the way it is,” said Senate Majority Leader Harry Reid, D-Nev.
Republicans who initially sought to defund the health care law in exchange for funding the rest of government have scaled back their demand, but say they need some sort of offer from Obama.
A meeting between Obama and congressional leaders at the White House Wednesday evening offered no glimmer of progress.
“All we’re asking for here is a discussion and fairness for the American people under Obamacare,” Boehner, R-Ohio, said after the meeting.
The White House said Obama would be happy to talk about health care — but only after Congress moves to reopen the government.
If the shutdown dispute persists it could become entangled with the even more consequential battle over the debt limit. The Obama administration has said Congress must renew the government’s authority to borrow money by Oct. 17 or risk a first-ever federal default, which many economists say would dangerously jangle the world economy.
Treasury’s report Thursday said defaulting on the nation’s debts could cause the nation’s credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket.
For now, Republicans planned to continue pursuing their latest strategy toward the shutdown: muscling bills through the House that would restart some popular programs.
Votes were on tap for restoring funds for veterans and paying members of the National Guard and Reserves. On Wednesday, the chamber voted to finance the national parks and biomedical research and let the District of Columbia’s municipal government spend federally controlled dollars.
As the politicians battled, mail continued to be delivered, air traffic controllers remained at work and payments were being made to recipients of Social Security, Medicare, Medicaid and unemployment benefits.
Taxes were still due, but lines at IRS call centers went unanswered.
Halted were most routine food inspections by the Food and Drug Administration. Some loan approvals for many low- and middle-income borrowers were thrust into low gear by the Housing and Urban Development Department. National parks were closed.
Workers were furloughed based on how essential their jobs were to the nation: Only 3 percent of NASA employees were kept on, while 86 percent at the Homeland Security Department were working.
Underscoring the rising intensity of the partisan battle, the Senate chaplain opened Thursday’s session with an unusually pointed prayer.
“Deliver us from the hypocrisy of attempting to sound reasonable while being unreasonable,” said Dr. Barry Black. “Remove the burdens of those who are the collateral damage of this government shutdown.”
___
Associated Press writers Connie Cass, Jim Kuhnhenn and Andrew Taylor contributed to this report.
Lawmakers feeling heat from government shutdown
Lawmakers feeling heat from Americans angry about gov’t shutdown, yet some say may last weeks
By Andrew Taylor, Associated Press | Associated Press – Wed, Oct 2, 2013 11:18 AM EDT
WASHINGTON (AP) — Lawmakers locked in a political stare-down Wednesday were buffeted by rising anger from across the nation about a partial government shutdown that ruined vacations, sapped businesses and closed military cemeteries as far away as France. Some on Capitol Hill ominously suggested the impasse might last for weeks, but a few Republicans seemed ready to blink.
Republican Rep. Peter King of New York accused tea party-backed lawmakers of trying to “hijack the party” and said he senses that a growing number of rank-and-file House Republicans — perhaps as many as a hundred — are tired of the shutdown that began Tuesday morning and will be meeting to look for a way out.
But GOP leaders and tea party-backed members seemed determined to press on. The House GOP leadership announced plans to continue trying to open more popular parts of the government. They planned to pass five bills to open national parks, processing of veterans’ claims, the Washington, D.C., government, medical research, and to pay members of the National Guard.
The White House immediately promised a veto, saying opening the government on a piecemeal basis is unacceptable.
“Instead of opening up a few government functions, the House of Representatives should re-open all of the government,” the White House said in an official policy statement.
The move presented Democrats with politically challenging votes but they rejected the idea, saying it was unfair to pick winners and losers as federal employees worked without a guarantee of getting paid and the effects of the partial shutdown rippled through the country and the economy.
Funding for much of the U.S. government was halted after Republicans hitched a routine spending bill to their effort to kill or delay the health care law they call “Obamacare.” The president accuses them of holding the government hostage.
Rep. Jason Chaffetz, a tea party favorite, said there would be no solution until President Barack Obama and Democrats who control the Senate agree to discuss problems with the nation’s unfolding health care overhaul.
“The pigsty that is Washington, D.C., gets mud on a lot of people and the question is what are you going to do moving forward,” Chaffetz, R-Utah, said on CBS’ “This Morning.”
Meanwhile, another financial showdown even more critical to the economy was looming. Treasury Secretary Jacob Lew told Congress that unless lawmakers act in time, he will run out of money to pay the nation’s bills by Oct. 17. Congress must periodically raise the limit on government borrowing to keep U.S. funds flowing, a once-routine matter that has become locked in battles over the federal budget deficit.
Rep. Steny Hoyer of Maryland, the second-ranking House Democrat, said Democrats would overwhelmingly accept a short-term spending measure to reopen the government and increase the nation’s debt limit while other political differences are worked out. “That would be a responsible way to go,” Hoyer told CNN.
At issue is the need to pass a temporary funding bill to keep the government open since the start of the new budget year on Tuesday.
Congress has passed 87 temporary funding bills since 1999, virtually all of them without controversy. Now, conservative Republicans have held up the measure in the longshot hope of derailing or delaying Obamacare.
House Speaker John Boehner blamed the shutdown on President Barack Obama’s “scorched-Earth policy of refusing to negotiate” with Republicans.
“Washington Democrats have slammed the door on reopening the government by refusing to engage in bipartisan talks,” Boehner, R-Ohio, wrote in an op-ed for Wednesday’s USA Today.
Fed-up Americans took to Facebook and Twitter to call members of Congress “stupid” or “idiots.” Some blamed Republicans while others blasted Obama or Democrats “who spend our tax dollars like crack addicts.”
Bruce Swedal, a 46-year-old Denver real estate agent, tweeted to Congress members: “You should not be getting paid. In fact, you all should be fired!”
Some 800,000 federal workers deemed nonessential were staying home again Wednesday in the first partial shutdown since the winter of 1995-96.
Across the nation, America roped off its most hallowed symbols: the Liberty Bell in Philadelphia, the Statue of Liberty in New York, Mount Rushmore in South Dakota, the Washington Monument.
Its natural wonders — the Grand Canyon, Yosemite, the Smoky Mountains and more — put up “Closed” signs and shooed campers away.
Democratic Sen. Tim Kaine of Virginia said he was getting pleas from businesses that rely on tourists. “The restaurants, the hotels, the grocery stores, the gasoline stations, they’re all very devastated with the closing of the parks,” he said.
The far-flung effects reached France, where tourists were barred from the U.S. cemetery overlooking the D-Day beaches at Normandy. Twenty-four military cemeteries abroad have been closed.
While U.S. military personnel are getting paid during the shutdown, thousands of civilian Defense employees are being furloughed.
Even fall football is in jeopardy. The Defense Department said it wasn’t clear that service academies would be able to participate in sports, putting Saturday’s Army vs. Boston College and Air Force vs. Navy football games on hold, with a decision to be made Thursday.
The White House said Obama would have to truncate a long-planned trip to Asia, calling off the final two stops in Malaysia and the Philippines.
Even as many government agencies closed their doors, the health insurance exchanges that are at the core of Obama’s health care law were up and running, taking applications for coverage that would start Jan. 1.
“Shutting down our government doesn’t accomplish their stated goal,” Obama said of his Republican opponents at a Rose Garden event Tuesday hailing implementation of the law. He said the Affordable Care Act “is settled, and it is here to stay.”
Senate Democrats led by Majority Leader Harry Reid of Nevada insist that Republicans give in and pass their simple, straightforward temporary funding bill, known as a continuing resolution, with no strings attached.
Republicans insisted that Democrats must agree to negotiate over the health care law as part of the funding deadlock.
Meanwhile, the District of Columbia was pursuing its own solution. The D.C. Council authorized using contingency funds to keep the city’s employees working, so that trash pickup, libraries and more could go on during the federal shutdown.
___
Associated Press writers Connie Cass, Lauran Neergaard and Merrill Hartson contributed to this report.
President Obama had a vision which he shared and got full public support and mandate, the vision that are good, fair and balanced for all people. The President is paying the price for the promise he made to save people’s lives with economic collapse.The President promised to serve diligently without veering off into the convoluted plot twists with unnecessary melodrama that afflicted so many people with economic downturn and loss of job opportunities. The country’s economy suffered from budget deficits over the years, a situation created by special business interest who evaded paying taxes and equally defaulted in paying back Government loans on time. There were many other instances of business theft that went on for many years undetected including twisted bankruptcy where businesses shut-down, with instances of irregular ponzi-schemes and Hedge Funding that were reasons for serious budget deficits by the selfish and greedy special business interest group.
To suspend Obamacare for another year is a crime against the people on their medical security. To protect from further medical fraud, the program must commence on time as legislated.
It must be known that, once a federal law has been enforced, it remain a validated law of the land. It is a requirement by law that the Presidency must be respected by all irrespectively. Knowing that President being in-charge of the executive branch, and that the Obamacare having gone through checks and balances in the normal legal dispensation process without a hitch; it is a crime, illegal and contemptuous for any group of politicians or the Speaker to change its course to allow Government Shut-down that serve fundamental public interest to favor special interest of a few, is unacceptable. It is as well breaking the law of many to short-change in ways or form, to bring such matter to be a subject for discussion. Delaying or suspending healthcare for people is deninately a crime that must be disputed by all to protect health security concerns; and politics must not be allowed to interfere with peoples livelihood and health interests.
How does this Gov. Shut-down impact debt default, when the nation’s borrowing go double from default and the limit must be raised from default? How will this help the Government from not defaulting???Does it not mean that these politicians who are after the Government Shut Down are into a jig-saw-cut-deal for their self and greedy interest, and that they are trading short-change business by using Gov. Shut-down purposefully to push Government to default to benefit benefactors? How can people trust Ted Cruz with those behind him pushing for the same??? This is definately a tango to test President Obama ability to leadership. Who will President Obama support, the people or the special interest??? Law is Law and no one is above the law. Obamacare is legally binding and it remains the law. This is the feel President Obama should guard against political actions that are in contempt of the law. This is asking the President to compromise on what is the LAW…….is this right??? Is this what the American people want???
It is unthinkable and despicable that a few special interest Republicans behave this way in a selfish manner to disrepute and embarrass this great Nation on the face of the world. Business community as well have a duty to respect the law.
It is therefore our concern and rights that we the people engage public support to reject the motion of Government-Shut-Down and petition the President to oppose this bad melodrama and instead, use his prerogative to save this ugly situation for the sake of many and equally protect democracy on fundamental service to the people. In these instances and for the ake of security of majority people and the Nation, President Obama has right to use the bligated power vested for the Presidency to VETO any such proceedings to save a situation.
Judy Miriga
Diaspora Spokesperson &
Executive Director for
Confederation Council Foundation for Africa
USA
http://socioeconomicforum50.blogspot.com
email: jbatec@yahoo.com
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What ObamaCare Will Mean for You
Published on Sep 27, 2013
http://www.healthcare.gov and use the new Health Insurance Marketplace to see all of the health plans available in your area and sign up for the one that fits your needs and budget. You can also find out if you’re eligible to pay less for private health insurance or whether you qualify for other free or low-cost programs.
White House White Board: What Obamacare Means for You
Megan Slack
September 27, 2013
11:01 AM EDT
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The Affordable Care Act – also known as Obamacare – means better coverage for those who already have health insurance, and more options for those who don’t, including a new way to shop for affordable, high-quality coverage.
Watch the latest White House White Board to learn more about what the law means for you.
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To Ask China’s Permission First
Bruce Tonkin The current Democrats are certainly not infallible, nor are they immune to criticism. The Republicans, however, have gone from being fiscally reckless (rai […] Frank Sharon This country is lucky to have men like Ted Cruz–Scott Walker—Ron Paul because they are for the people of united states. Obama and the Clintons and quite a […] James Pleiss Senator Cruz is a rare politician in that he understands logic and reasons deductively as any prosecuting attorney would; this presents a problem to so man […]
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Ted Cruz: Has he overplayed his hand? (Photo credit: Wikipedia)
Ted Cruz, an ultra-conservative Cuban American who is leading the current assault on Obamacare, has done more than anybody to bring the federal government to the brink of shutdown. What he has not considered is how America’s foreign creditors will react.
Although China, Japan, and other major creditor nations have no dog in the Obamacare fight, they have a strong interest in preserving America’s basic financial, economic, and social stability. From their point of view, Cruz, a junior senator from Texas and a Tea Party favorite, is not following the script. It is essential that he be smacked down – and he will.
Bruce JapsenContributor
Unbeknownst to Cruz, and seemingly to most of the rest of the Republican party, the creditor nations hold the high cards. If they were to sell just a small proportion of their American assets, they could send Wall Street into a tailspin. They are unlikely to do this but even if they were merely to slow the pace of their buying, bond yields would rocket and stocks could fall 15 percent in the space of a couple of weeks.
It is sometimes suggested that by triggering a sell-off, creditor nations would be cutting their own throats. Actually this is a characteristically myopic Western way of looking at things – a view that completely misunderstands how things have changed now that East Asians call the tune. The point is that the creditor nations are long-term holders who are largely indifferent to short-term fluctuations.
As a general rule, the East Asian creditor nations hate drawing attention to themselves. But they are quite effective behind the scenes in making their views known. One of the most important ways they wield influence is through major Wall Street investment banks. These latter in turn spend large amounts on political contributions, typically backing both Republicans and Democrats. Their money gives them plenty of face time to advise American elected representatives on “good economics,” a term that more and more these days amounts to economics that serves East Asia’s interests. Meanwhile American investors generally are short-term thinkers who rarely show much intestinal fortitude in riding out downturns. As they generally vote Republican, their bleating can be expected to help soften the attitudes of Cruz and his cohorts.
It remains to be seen how markets will react tomorrow but the betting is that, in the absence of a climbdown by Republicans, we will see a significant correction. And if Cruz and his allies continue to stick by their guns in the weeks ahead, we could see damage particularly in techs and other high P/E stocks. For the record, major tech stocks that seem most richly valued on a forward P/E basis include CRM, LNKD, CCI, FB, and ADBE. Although future prospects may justify such valuations, the short-term action could be quite bumpy — certainly bumpy enough to frighten a lot of the Republican rank and file.
By
Jake Miller /
CBS News/ September 22, 2013, 4:29 PM
Budget bill battle over Obamacare opens new GOP schism
Sen. Ted Cruz, R-Texas, center, smiles during a news conference with conservative Congressional Republicans who persuaded the House leadership to include defunding the Affordable Care Act as part of legislation to prevent a government shutdown, at the Capitol in Washington, Thursday, Sept. 19, 2013. / AP Photo/J. Scott Applewhite
After the House passed a bill on Friday funding the government for roughly three months but defunding Obamacare, the fight over the budget and the healthcare law shifted to the Senate.
While most lawmakers, including many Republicans, have all but conceded that the Senate will never pass the House bill and will instead re-insert Obamacare funding, Sen. Ted Cruz, R-Texas, who is leading the fight against the healthcare law in the upper chamber, insisted it’s still possible for the Senate to follow the House’s lead.
“Senate Republicans should stand united to stop [Senate Majority Leader] Harry Reid from changing the House bill and, in particular, from inserting the funding from Obamacare with 51 votes,” said Cruz on “Fox News Sunday.” “That’s going to be the fight procedurally – whether he’s able to use a straight party line vote, just Democrats, to put Obamacare back. And you know what? If Senate Republicans stand together, we can stop Harry Reid from doing it.”
Cruz said he will ask Reid to institute a 60-vote threshold for amendments to the House bill, which would enable the Senate’s 46 Republicans to block any measure re-inserting Obamacare funding if they are able to stand united.
Play Video
Rep. Salmon: Defunding Obamacare “the will of the people”
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Coburn: “We don’t have the ability” to defund Obamacare
But when he was pressed by Fox News’ Chris Wallace on whether his GOP colleagues will stand behind him, the Texas Republican demurred.
“We don’t know right now, and this week, we’ll determine that,” he said. “Look, this has been a fast moving target. You know, just a few weeks ago, we didn’t have any of the votes we needed in the House or in the Senate.”
If he doesn’t get his wish, and the Senate votes to send a bill with Obamacare funding back to the House, Cruz said Republicans should stand strong, even if it means incurring a government shutdown – not that such a result would be the fault of the GOP.
“I believe we should stand our ground and I don’t think Harry Reid and Barack Obama should shut down the federal government,” he said. “Look, the House voted to fund the federal government. If Harry Reid kills that, Harry Reid is responsible for shutting down the government and he should listen to the American people, open the government, fund the government, but don’t fund Obamacare because it’s hurting the American people.”
Despite Cruz’s tough talk, most of the rest of Washington is convinced his push to defund Obamacare will ultimately come up short. And some of the strongest notes of skepticism are coming from his fellow Republicans.
“I am sure the Senate is going to move that bill forward,” said Sen. Tom Coburn, R-Okla., on CBS’ “Face the Nation. “We don’t have the ability… to put a total stop and defund Obamacare. It would be nice if we did. I’d be in the fight.”
Coburn marveled that those who were clamoring loudest for a vote on defunding Obamacare, such as Cruz, are now threatening to halt the legislative the process if it doesn’t suit their ends. “The ironic thing…is that the answer now in the Senate, by those who proposed this strategy, is to filibuster the very bill they said they wanted,” he said.
Even Sen. Rand Paul, R-Ky., who has sided with Cruz and other Republicans pushing to defund the law, threw cold water on the likelihood that they could succeed.
“We probably can’t defeat or get rid of Obamacare,” Paul told reporters at a Republican gathering on Saturday, according to the Associated Press.
The skepticism from Paul and Coburn echoed that of other Republicans, such as Sen. John McCain, R-Ariz., who said this week that it’s not “rational” for Republicans to think they can defund the healthcare law during the budget fight, and Rep. Peter King, R-N.Y., who urged Cruz to “keep quiet” with his hard-line on Obamacare.
House anti-Obamacare budget bill dead on arrival, senators say
Obama to Congress: Pass a budget, quit the drama
Democrats, for their part, agree with their GOP colleagues who believe that de-funding the healthcare law is off the table. Senate Majority Leader Harry Reid, D-Nev., has vowed that any bill that touches Obamacare funding is “dead” when it reaches his chamber.
Play Video
Reid: “Any bill that defunds Obamacare is dead”
In the meantime, though, Democrats are happy to sit back and watch Republicans snipe at each other, saying the infighting demonstrates just how disorganized and ideologically bankrupt the GOP has become.
“Let’s be really clear about this: The Republicans put legislation on the floor that was intended to shut down government. For them, that’s a victory, because they’re anti-government ideologues who dominate the Republican Party,” said House Minority Leader Nancy Pelosi, D-Calif., Sunday on CNN. “The effect of putting the Affordable Care Act on the bill is to shut down government. They know that. They know that has no prospect of prevailing.”
“I call them legislative arsonists,” she continued, warning that Republicans’ obsession with Obamacare could wreak havoc on other, unrelated budget items. “They’re there to burn down what we should be building up in terms of investments and education and scientific research and all that it is that make our country great and competitive. I don’t paint them all with the same brush. And I certainly don’t paint the speaker with that brush. But enough of them in their caucus to shut down government. That would be a victory for them.”
Sen. Claire McCaskill, D-Mo., told “Fox News Sunday” that Republicans are throwing a “tantrum” because they didn’t get their way in the 2012 election.
“It’s not brute political force that is refusing to defund Obamacare. It’s called the American people and elections. I don’t think in America, we should throw tantrums when we lose elections and threaten to shut down the government and refuse to pay the bills,” she said. “I cannot believe that they are going to throw a tantrum and throw the American people and our economic recovery under the bus.”
Comments:
Unfortunately, partisan dan doesn’t quite understand that both parties spend our money equally — they just have different priorities — and the PPACA fixed the Medicare Part D “donut hole” that saves seniors billions, since the PPACA funded the unfunded GOP legislation!
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jimsmith90210 says:
Quite hypocritical of rafael cruz, the Canadian senator living in texas, to be filibustering “until he can no longer stand” in the Senate, while 26% of his constitutents lack health care — the state with the most uninsured and under-insured residents — which only means he should be championing the ACA instead of fighting it!
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Au contraire!!!
It’s different for the GOP than the Democrats. Things that are okay for the GOP are an outrage when Democrats do them. If Obama was born in the United States, as was his mother, but his father was born in Kenya, that makes him not a US citizen. But if Cruz’s mother was born in the United States, and he was born in a foreign country, that makes him a US citizen. Kind of like how Romneycare is good, but Obamacare is bad. Or how Obama should be forced to make every single school record public, but Romney’s tax returns were nobody else’s business. Or how Anthony Weiner is a horrible, morally corrupt man (he is) but Mark Sanford was such a paragon of virtue that he not only was allowed to finish his term in the House, but then went on to be elected to the Senate. How silly of you, thinking that the GOP should operate under the same rules. I hope you understand now, how absurd the very suggestion is.
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jimsmith90210 says:
ButIPlay1onTV says: “Now notice that Cruz is still a Canuck. At least, after he’s run out of congress and exiled back to his home country, he’ll get their free healthcare.”
Maybe not, since the Canadians could agree to take him back on the condition that he will not apply for socialized health care since he is so radically against it, and force him to return to texas for health care – the state that has the highest number of uninsured residents!
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goldenrod25 says:
Strange how the Republicans keep fighting amongst themselves. Seems like McConnell finally grew a pair and put Cruz in his place. Too bad Boehner doesn’t do the same to the TeaParty nuts in the House.
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House Republicans defy Obama on funding bill; government shutdown nears
Thomas Ferraro and Richard Cowan 2 hours ago
By Thomas Ferraro and Richard Cowan
WASHINGTON (Reuters) – The House of Representatives early on Sunday brought the federal government closer to a shutdown as it voted to delay President Barack Obama’s landmark healthcare law for a year as part of an emergency spending bill.
By a mostly partisan vote of 231-192, the Republican-controlled House approved the “Obamacare” amendment, despite a veto threat from the White House.
It also voted 248-174 to repeal a medical device tax that aims to help fund healthcare programs under the 2010 law.
And in a sign that lawmakers might be resigned to a government shutdown beginning Tuesday, the House unanimously approved a bill to keep paying U.S. soldiers in the event the government runs out of money to run many programs.
Senate Majority Leader Harry Reid reiterated on Saturday that the House bill would be dead on arrival in the Democratic-controlled Senate, which is not scheduled to meet until 2 p.m. on Monday.
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U.S. House Majority Leader Eric Cantor (R-VA) (C) walks to the House floor for a series of late-nigh …
Obama also threatened to veto any bill that delays his healthcare restructuring.
There is a slight chance the two sides could reach a funding deal before the government’s fiscal year ends at midnight on Monday. Congress could also act at any time to end the impasse if a shutdown did occur.
But the bitterness of the House debate on Saturday night that spilled into early Sunday did not bode well for prospects of a compromise.
“You have been hijacked by a group called the Tea Party,” Democratic Representative David Scott of Georgia said angrily, referring to the powerful conservative, anti-government movement that holds significant sway over Republicans.
“The American people deserve to have time to see what this monstrosity will do before it is implemented,” shouted Republican Representative John Culberson of Texas, referring to “Obamacare.”
The high-stakes maneuvering between Democrats and Republicans is likely to continue through much of Monday.
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The U.S. House of Representatives remains fully lit during a rare late-night Saturday session at the …
The standoff is also a harbinger for the next big political battle in Washington: a far more consequential bill to raise the federal government’s borrowing authority. Failure to raise the debt ceiling by mid-October could result in the government defaulting on its obligations.
MEDICAL DEVICE TAX
The funding impasse is the culmination of more than three years of failed conservative efforts to repeal “Obamacare,” a program aimed at extending health insurance to millions of those without coverage.
Republicans argue that “Obamacare,” which is set to launch on October 1, is a massive and unnecessary government intrusion into medicine that will cause premiums to skyrocket and damage the economy.
Failure to pass a funding bill would close down much of the government for the first time since 1996. More than a million federal employees would be furloughed from their jobs, with the impact depending on the duration of a shutdown.
The current timetable could leave House Speaker John Boehner with the most difficult decision of his career: whether to approve a straight-forward spending bill passed on Friday by the Senate or allow the government shutdown to begin.
View gallery.”
The U.S. House of Representatives remains fully lit during a rare late-night Saturday session at the …
Neither side wants to be the last to cast the final vote that would lead to a shutdown, a concern that has turned the funding measure into a hot potato tossed between the two chambers.
While polls consistently show the American public is tired of political showdowns and opposed to a shutdown, House conservatives were jubilant about the fight.
“This is a win-win all the way around,” said Republican Arizona Representative Matt Salmon, who described the mood of Republicans before the vote as “ecstatic.”
Republicans and a handful of Democrats also approved an amendment to the bill repealing a tax on medical devices that helps fund the healthcare law to the tune of about $30 billion. That provision, sought with heavy lobbying by the medical device industry, has been supported in the past by some Democratic senators.
In a government shutdown, spending for functions considered essential, related to national security or public safety, would continue along with benefit programs such as Medicare health insurance and Social Security retirement benefits for seniors.
But civilian federal employees – from people who process forms and handle regulatory proceedings to workers at national parks and museums in Washington – would be temporarily out of work.
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U.S. House Majority Leader Eric Cantor (R-VA) (C) walks into the offices of Speaker John Boehner (R- …
The last government shutdown ran from December 16, 1995 to January 6, 1996, and was the product of a budget battle between Democratic President Bill Clinton and Republicans, led by then-Speaker Newt Gingrich.
Republicans suffered a public backlash when voters re-elected Clinton in a landslide the following November, a lesson never forgotten by senior Republicans, including Boehner.
This time, Boehner tried to avoid a showdown but was overruled by his rebellious caucus, largely influenced since the 2010 election by newcomers endorsed by the Tea Party.
While Boehner and Majority Leader Eric Cantor, the top House Republicans, worked behind the scenes, they did not deliver floor speeches in support of the bill – something they often do on major legislation.
Instead, some of the House’s most conservative members who drove the “Obamacare” delay effort, dominated the debate.
With Boehner effectively sidelined, rank-and-file Republicans boasted of their unity. Members chanted, “Vote, vote, vote, vote,” in their closed-door meeting, they reported later.
Afterward, Democratic Representative Louise Slaughter of New York, took to the House floor to accuse Republicans of throwing a “temper tantrum” about “Obamacare” under pressure from “Tea Party extremists.”
Conservative and liberal groups, from the Tea Party to women’s rights organizations, have been cashing in on the showdown over “Obamacare,” using it to rally supporters and raise money for next year’s congressional elections.
(Additional reporting by Caren Bohan and Kim Dixon.; Editing by Fred Barbash, Christopher Wilson and Paul Simao)
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Bill Clinton: When It Comes to Obamacare, GOP ‘Begging for America to Fail’
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The Republican Party is “begging for America to fail” by rooting for President Obama’s signature health care law to fail, former President Bill Clinton said during an interview for “This Week” with ABC’s George Stephanopoulos,
“I’ve never seen a time – can you remember a time in your lifetime when a major political party was just sitting around, begging for America to fail … I don’t know what’s going to happen. But I’ll be shocked if it fails,” Clinton, who attempted during his first term as president to overhaul the country’s healthcare system in the early 1990s, said during an interview taped Thursday in New York while the annual Clinton Global Initiative was taking place.
A recent ABC News-Washington Post-poll found that more than half of Americans are opposed to the Affordable Care Act. But for his part, Clinton is optimistic that with time, the law – known more commonly as “Obamacare” – will grow in popularity.
“I just think that when all these dire predictions don’t come out, if they don’t – I believe that pretty soon, within the next several years, this’ll be like Medicare and Medicaid. And it’ll be a normal part of our life. And people will be glad it’s there,” the former president told ABC News.
READ: Clinton Calls Parts of House GOP Proposal to Raise Debt ‘Chilling’
Clinton was responding to a recent suggestion by Republican South Carolina Sen. Lindsey Graham that former Secretary of State Hillary Clinton’s political future was tied to the success or failure of Obamacare. Graham said he thinks the law will fail.
Clinton told Stephanopoulos he was “not at all” concerned about the potential failure of the Affordable Care Act having any impact on a potential run by his wife for the White House in 2016.
“I think this bill’s already produced a lot of good results and every – look, they are desperate for this bill to fail, because if it’s not a failure, their whole – everything they’ve been telling us since 1980 that government’s bad is wrong. They so badly want it to fail,” he said.
Since being passed in 2010, the Affordable Care Act has been a political lightning rod and has been subject to attempts by Republicans to delay and defund it. The law is at the center of the current fight in Congress that could lead to a government shutdown, which would be the first in almost 20 years.
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Criminal Investigation investigates healthcare fraud perpetrated against the federal and state governments, as well as private insurance companies. In these investigations, CI follows the money trail and considers both tax and money laundering perspectives. Criminal tax investigations are initiated when income generated from healthcare fraud is not correctly reported on tax returns, or when there is an overstatement of expenses on tax returns. Criminal Investigation investigates money laundering when either illegally obtained funds from healthcare fraud are used to purchase assets or when the perpetrators of the schemes devise elaborate methods to conceal their fraudulent proceeds. Money laundering occurs in a wide range of fraudulent healthcare schemes such as false claims, kickbacks, or staged accidents.
Typical healthcare fraud investigations are lengthy, labor intensive, and involve complex issues. To assist in combating healthcare fraud, CI participates in DOJ-sponsored, multi-agency task forces and works closely with several state agencies. These task forces capitalize on the strength and expertise of the participating agencies and have proven effective in dealing with healthcare fraud.
Criminal Investigation’s participation enhances multi-agency healthcare fraud investigations by documenting that the perpetrators of these schemes financially benefited from their fraudulent activities. Currently, CI is involved in the following areas of healthcare fraud: false billings, mental health, nursing home fraud, chiropractic fraud, durable medical equipment fraud, staged accidents, pharmaceutical diversion, and patient referral (kickbacks) schemes.
Statistical Data
Healthcare Fraud enforcement statistics on investigations initiated, prosecutions recommended, indictments, sentenced investigations and months to serve in prison.
Examples of Healthcare Fraud Investigations
Examples of investigations have been written from public record documents filed in the district courts where the case was prosecuted.
June 1st, 2011
Undercover Investigation Reveals Unfair Treatment of Dental Patients
According to the findings of an undercover investigation, dentists overcharge their patients and do not inform them correctly regarding the fact that they can get cheaper treatments through their NHS policies
According to the findings of an undercover investigation, dentists overcharge their patients and do not inform them correctly regarding the fact that they can get cheaper treatments through their NHS policies.
Some even go to the point where they pressure the patients to choose the private insurance, even though these patients could receive the same quality treatment through NHS, but much more cheaply.
There has also been a case where a patient received a quote 4 times more expensive than a non-private insurance quote for a root canal treatment.
These findings have been made public through the “Dispatches” team from Channel for on TV. There have even been sent out members from the public to go for NHS check-up at offices that offer both private and non-private treatments.
After the “patients” have spent on an average 15 minutes inside the office, they came out and said that they have been recommended to go with private care (the focus has been especially on hygienic dental services). An NHS scale and polish treatment costs around £16.50, but instead of that patients have been given quotes for private treatment which is much more expensive.
Some other members of the public were sent to three surgeries where they have been asking about the root canal treatment options.
With the NHS this treatment costs around £198, but instead patients have been quoted rates coming from the private sphere- £678, £598 and £725 respectively.
The opinion of Dr. Anthony Halperin who is a dentist and a member of the Patients Association is that these dentists are not sincere and rightful towards their patients.
The next step is that the coalition is ready to re-negotiate the dentistry deal of the Labour from 2006, to see what changes can be made in order to enforce fair treatment for the patients in the dentistry field.
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Health Care Fraud
Trends and Tips
06/28/10
A pharmaceutical company marketed four drugs to doctors. The drugs had been approved by the Food and Drug Administration (FDA) for specific medical conditions—like rheumatoid arthritis, schizophrenia, and neuropathic pain—but the company promoted the drugs for other uses as well—like post-operative pain, dementia, and migraines—and sometimes in larger doses than the FDA allowed. In some cases, the company even paid kickbacks to doctors to prescribe the drugs for these other uses.
What this company did is known as off-label marketing of prescription drugs, and it’s both illegal and potentially harmful to consumers. After an investigation involving the FBI and our federal and state partners, the company pled guilty to misbranding the drugs and agreed to pay $2.3 billion to settle criminal and civil violations…the largest U.S. health care fraud settlement ever.
At the FBI, we take our health care fraud responsibilities seriously as the primary investigative agency with jurisdiction over both federal and private insurance programs. But with total health care expenditures in the U.S. expected to reach $2.26 trillion by 2016 according to the Centers for Medicare and Medicaid Services, the opportunity for fraud will continue to grow—so will our workload. That means we have to find ways to leverage our resources.
Latest Schemes and Scams
As part of its health care fraud program, the Bureau is looking at various fraud schemes involving:
– Home health care;
– Infusion therapy; and
– Durable medical equipment.
We’re also focused on other health care fraud-related crime problems impacting public safety, such as:
– Off-label marketing of prescription drugs;
– Drug diversion (prescription drugs diverted from legitimate supply sources for illicit distribution and abuse); and
– Internet pharmacies
Partnerships are key. A tried-and-true method of leveraging resources is establishing partnerships. And we’ve done just that—with federal agencies like the FDA and the Drug Enforcement Administration, various state and local agencies, and private insurance groups like the National Health Care Anti-Fraud Association.
Our most recent joint endeavor? Our participation in the Department of Justice/Health and Human Services’ (HHS) Health Care Fraud Prevention and Enforcement Action Team, or HEAT, and its Medicare Fraud Strike Forces located in several major metropolitan areas.
The HEAT initiative includes senior Justice, FBI, and HHS officials who are focusing their efforts to reduce Medicare and Medicaid fraud through enhanced cooperation. And the strike forces, which use a data-driven approach to identify unexplainable billing patterns by health care providers and then investigate these providers for possible fraudulent activity, are a vital part of the initiative. As a result of strike force efforts, more than 300 cases have been filed and close to 600 defendants charged.
Health care fraud facts:
Health care fraud schemes come in all forms—fraudulent billings, medically unnecessary services or prescriptions, kickbacks, duplicate claims, etc.
Schemes target large health care programs—both public and private—as well as health care beneficiaries. (Medicare and the Medicaid are the largest programs, so they are targeted more often.)
Schemes are committed by health care providers, owners of medical facilities and laboratories, suppliers of medical equipment, organized crime groups, corporations, and even sometimes by the beneficiaries themselves.
FBI health care fraud cases sometimes cross over into other investigative areas, like organized crime, gangs, and cyber crime, where we see criminals beginning to use the proceeds from health care fraud schemes to fund their operations.
Tips to help avoid being victimized:
Protect your health insurance information card like a credit card.
Beware of free health services—are they too good to be true?
Review your medical bills, like your “explanation of benefits,” after receiving health care services and ensure the dates are services are correct.
And if you suspect health care fraud, contact your local FBI office.
This study distills lessons learned from 100 initiatives where public- and private-sector organizations have joined forces to strengthen resilience against climate disasters, and presents exemplary case studies to show how others can follow suit.
Full details of the findings and recommendations can be accessed in the full Resilience in Action report, or in the Summary for Policymakers. A set of nine, two-page case studies are included as an annex in both, and are also available as a standalone document.
The study was led by Meister Consultants Group and funded by CDKN. It supports the work of the UNISDR’s 2013 Global Assessment Report on Disaster Risk Reduction (DRR), published in May, which set out the business case for DRR.