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submalevolentgrace · 1 year

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(yesterday i received an ask, which prompted me to write the following response. the asker has apologised for sending it and i took it down to prevent anyone from laying into them, but present is anonymously below because i like my response and want you to see it)

"Based on the fun new revelation that the world is ending before I graduate, is it even worth it to try prepping or should we all just get ready to jump into traffic come 2025?"

okay, there is, A LOT to unpack here. i'm gonna do my best to respond to this helpfully, the way i am facing it: confronting it, emotionally processing it, pragmatically preparing, and holding on to a sort of grim, dark hope.

we're talking about climate collapse and the latest IPCC report here right? first off, it's not a new revelation. maybe it is for you personally, but for humanity as a whole, we've known about the inevitable outcomes of emissions damaging the climate since like the 70's. i found out about it myself in primary school in the mid 90's, when it was still called the greenhouse effect, and i then spent 20 years on and off in various roles of support for climate activism, when i had the spoons. if you're young and just finding out about it now i know it's probably overwhelming, and especially sucks the later you've been born into this mess… but i'm pointing out that it's not new, to underline the point that it's also not sudden. yeah it's getting worse, but it's been getting worse for generations, and will keep getting worse for generations.

it's not a meteor, or a volcano. it's a creeping steady decline of habitability with sputters and bursts of natural disaster; there is no timeline or event or threshold at which the world ends here.

that 2025 "deadline" from this year's IPCC synthesis report, for instance; it's not a date that the world ends. honestly, in some ways, it's kinda meaningless. what it is, as i understand it, is that all the data says that if we want to limit global average temperature rises to 1.5C by end of century - which we do, because even 2C would be catastrophic - we need emissions to peak by 2025 and then rapidly decline. it's a vastly oversimplified agregate of incredibly complex data reduced down to the point of absurdity in a desperate attempt by scientists to get corporations to allow governments to take action to limit corporations. it's a deadline for government action to limit effects by 2100. the year will come, and pass, and the world will go on. probably with emissions still going up, probably with targets shifted again and 2C accepted as the next half hearted goal that will also be missed, but life will go on.

no end of the world. life will go on. into the 2030's, into the 2040's, into the 2100's, life will go on. it'll be hotter and colder, wetter and drier, more storms and bushfires, less food and fertile land, but life will go on. populations will starve, land will become uninhabitable, life will go on. when you hear about "the end of the world" from climate collapse, it's not a hard apocalypse that kills us all off or whatever. it's the slow creep of nature getting more harsh, and the way we do things much harder.

if you look at the serious reports from scientists and militaries, the language you see isn't "end of the world", it's "end of modern societies". that's what's really at risk: the fragile infrastructure that holds up the ruling classes of rich nations and has us all scurrying around to make it work. mass scale power grids, international supply chains and just in time logistics, silicon wafer production, year-round plastic wrapped preserved passionfruit chunks grown in thailand, packed in argentina, sold in france, profits to america, money stored on a computer in the cayman islands. i can't sugarcoat it and say that's all that's at stake; people are definitely going to starve and drown and die of exposure; but that already happens every day in most of the world, right now. there are a million rohingya at the border of bangladesh, locals fleeing khartoum as the west airlifts out is nationals, people whose civilisations were crushed under the boots of empires and land destroyed to create the farmland and factories that are killing the planet. life for them goes on.

i mean, i get it. seeing the impending collapse of your society, everything you've known for your whole life being willfully destroyed, it's fucking devastating. we want to keep sitting here on comfortable couches with our gold and cobalt plated supercomputers sharing cat gifs on the hellsite. we don't want to have our civilisation taken away from us and be forced into brutal struggle to survive. it's going to fucking suck, it will be awful, and it will be (and already is) most destructive to the people who are already the worst off, which just sucks even more… and maybe your life is already bad enough that you don't think you can handle it getting worse. i mean, i've been suicidal since i was 14 and i've been through trauma and medical torture you wouldn't believe since then. i get it. you're scared, terrified even. existentially threatened. you don't know what you can handle and maybe you donn't wanna find out.

but here's the thing: the ONLY sensible thing you can do, now and going forwards, is prepare for it.

you wanna kill yourself when it gets hard? let's say sure, i agree with that. what's the threshold then, what's the limit? when will you kill yourself? the power grid going down? sewerage backing up? supply chains failing and being unable to buy food? from the comfort of the developed world, those all feel like exit points i can imagine many people taking as their out… but how long does it have to last before you know it's carbon-monoxide-party time? a month of no power, no flush, no food? a week, a few months, or a year? because it won't start that way.

it's not a meteor or volcano, it's a slow slide. some powerlines sagged so there's rolling blackouts every now and then, a few hours or a day at a time. pipes backed up a bit so pressure is reduced for a week until repairs are done. fires and plague have closed roads so shelves are bare and stores are limiting purchases on essentials this month. there will be bumps along the road before there will be any sort of definitive cliff where you can say "this is it, now is the time to kill myself". these bumps are already happening.

i really hope you can agree, it'd be absurd to be such a fatalistic doomer that you kill yourself instantly at the first blackout, dry tap, or closed grocery store; when you can't know if it'll be back up in a few hours or tomorrow or next week. these small disruptions are already happening right now, directly as a result of climate collapse, but we're still here, still living. if we're going to talk about suicide as a pragmatic option, you need a threshold, and wherever you set it, you'll have to get through what comes before. "i'll kill myself after a month with no grid" still means you gotta be ready for a week without it. you gotta prepare, even if you plan to not survive.

and i know it's overwhelming, i know. to look around and think about what is essential to keep you going, what you can sacrifice, how you can make it through. but you're not going to be doing it alone, everyone around you is going to be doing it with you. we're all going to be struggling through it, and based on how communities have responded in the last few years to a string of once-in-a-lifetime disasters here in my home of climate-fucked australia, i am certain that when the climate collapses around a group of people, they will form a community and help each other, no matter how selfish and mean of a country bogan (translation: redneck) they are. people will help each other; people already are helping each other.

because yeah, climate collapse will probably destroy modern civilisation… but so what? it's a neoliberal capitalist hellscape quickly plunging us into technologically enforced eternal authoritarianism… and like, not to be an accelerationist or anything, but here's that dark hope i mentioned: i'm kinda relieved by the thought that the infrastructure that enables it won't last this century. that climate collapse will force us out of these horrors, and back into real, interdependent community.

so do what you can to prepare, how you can, to make the little disruptions more bearable and comfortable. there's plenty of resources still available for off grid life, camping, home agriculture, and general self sufficiency out there on the still-existant internet, and more people are getting into it all the time - not just what you imagine when you hear "prepper". any skill you can develop, anything you can do to prepare, even if it's as simple as keeping extra shelf stable food and a jug of clean water around, anything you can do will help you materially and more importantly, mentally.

having some jerry cans of water and a small solar setup has been amazing for my mental health and anxiety! and as much as i'm putting material and energy into preperations, i'm also putting them into comfort, maybe even hedonism. collecting some cool lego, got some fancy synths i didn't need, making fucked up noise music with them. enjoying the sound of the neighbours' chickens, looking forward to the day "the world ends" and i can free-range my own on the council's nature strip and share the eggs with the pottery lady down the street. once you're prepared to survive a week of grid down, maybe you'll realise a month, a year, isn't so unbearable. maybe it starts to feel nice?

because i've been there, the suicidal grief. 2018 was absolutely the worst year of my life and i was sure i'd die being tortured in hospital, and coming out of that, in 2019, both the IPCC and ADF released incredibly bleak reports on climate collapse outcomes, and it all sank in. all the spare spoons i'd sunk into helping when i could, all the decades of scientists desperately warning, it all failed. the final warnings have been coming for years, with no change in course, it's happening. and i faced the realisation that my decades were limited, my time of comfort short, and i started despairing and grieving. i turned to what support systems i had, and they failed me. when my psych asked what i was so anxious about and i started explaining the climate reports, he tensed up and started asking diagnostic questions for dilusional psychosis. i went home and cried, i was sleeping on the couch in the junk storage room of my sharehouse because i'd let my own room fill up with so much trash that there was a distinctly organic smell of growth choking the whole place out. i was fucking done, my heart and body broken, there didn't seem to be any point in anything, not without a future. it's the closest i've been to killing myself since leaving home…

so i said, fuck it. i've got a tiny pool of cash from welfare backpay, and i bought a synth i wanted. it fucking rocked, and brought me so much joy, so i bought another, and another. no future to save for, anyway. i made some cool music, i never saw that psych again, i gave up on my drive for revenge on doctors and finding answers about my fucked up nervous system, why bother when the world is ending? and i made music. i can kill myself later maybe. i started loving myself more, because what's the point starving to death hating myself? i made music and got confident and cleaned my fucking room, bought a new mattress. i met a girl and took a chance and we fucked real good and i fell in love again. i moved out somewhere new and quieter and left a home of over a decade behind me, left parts of my identity behind me, moving forward and growing for the better. i have a family now, the first family that has ever loved me without expecting anything in return, and i love them with all my heart. i listen to the chickens, and watch leaves float down the storm water drain, and make cool music. yesterday i listened to a 14 minute track i made 6 months ago and almost cried, because nobody can make music that is so perfect for my tastes except me, and i brought it into existence. on the weekend i'm gonna set up the solar panel to keep the backup battery topped up, i use it to charge my phone and laptop, which the kids would call solarpunk and i'd call cool as fuck to have a solar powered laptop.

in 2019 i stared into the void and realised there is no real future for me, for human civilisation as we know it, and i grieved and processed… i almost killed myself, but i didn't, and the years since have been the best of my life, no question.

so, no. don't kill yourself, now or in 2025 or at any point until you can't handle the torture anymore. "graduation" sounds young, real young, even if it's tertiary. i'm creeping towards 40, and the age that "graduation" conjures makes me think that you've got a hell of a lot of potential left in you, for fun and stupidity, and growing up, and finding love and heartbreak, and your version of wierd-arse synth music.

so go out there, prepare, and enjoy.

…

…..and for the love of all the false goddesses of the void, never, NEVER EVER again contact a random fucking blog on tumblr and ask if you should kill yourself. holy fuck buddy. the amount of pressure you put me under to deliver an emmaculately worded response that somehow talks you down from the ledge without lying, is way, way too much fucking pressure. i really hope you were being stupidly hyperbolic, but even then, Eris Fucking Kallisti Herself In Absurdist Pagan Blasphemy, so incredibly unacceptable to say to a stranger. i think you need a therapist, even if they do think you're catastrophising, because like. shit dude. this is abso-fucking-lutely not okay!

now go. prepare and enjoy.

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1americanconservative · 1 year

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In the Cayman Islands, there is a modest five-story building that is home to 18,857 companies. Either this is one very crowded building, or it is a phony address, used by 18,000-plus corporations for one purpose: To avoid paying taxes to the United States of America.

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bopinion · 11 months

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2023 / 45

Aperçu of the Week:

"Conflicts come and go. Money stays."

(Dmitry Anatolyevich Medvedev, ex-President of the Russian Federation)

Bad News of the Week:

It was feared for a long time, now it's happening: the Ukraine war may not be losing its horror, but it is losing its attention. As happened with Syria. And with Yemen. How is Iraq actually doing? Or Libya? New times bring new headlines. People's attention span is limited. And people's empathy too. It is not only in the US Congress that voices are getting louder questioning support for Ukraine. It would be a bottomless pit anyway. And you can't take care of everything.

In this country too, people are now taking to the streets for or against Palestine, for or against Israel. The aggression of Hamas or the Netanyahu government is obviously closer to us than the aggression of Putin. At least now. But perhaps also in Europe in general, to which Israel is often counted. France has a not only flattering history in the region and a large Arab population, Germany's special relationship with the Jewish people ("reason of state") need not even to be mentioned.

And now there is growing evidence that Ukraine does not always wear white shirts either. Research by the Washington Post, among others, into the background to the explosives attacks on the North Stream pipelines leads to Ukraine. Former intelligence officer and special forces commander Roman Chervynsky is described in security circles as the "coordinator" of these attacks, responsible for the logistics of the sabotage commando. If Ukraine is now behind the biggest act of sabotage of all time, no German, whose energy prices have tripled as a result, will be pleased. If, at the same time, direct military aid is doubled to 8 billion euros, the purse strings will be tight. In real terms, but above all in terms of feeling.

I very much hope that the solidarity that has united us Europeans up to now will only crumble and not collapse. Because it is still true that European values are being defended in Ukraine. Vladimir Putin must not be allowed to win. But I am increasingly worried that his calculations could work out. Time is clearly working in his favor. Sidenote: the Russian economy is currently doing better than the German.

Good News of the Week:

Jeff Bezoz and Elon Musk are known as negative examples of capitalism. Attacking competitors, exploiting employees and paying as little tax as possible. Virtually all investors and almost every multinational corporation try to structure their balance sheets in such a way that as little as possible goes to the state(s). Even though those depend on tax revenues for their public welfare tasks. Tax evasion is how all our companies work.

The problem is, on the one hand, the well-known tax havens such as Cayman Island and, on the other hand, competition between nations as to where which company with which activity sets up shop. Because of jobs and because of taxes. I have remembered a creative example of tax avoidance in Europe from recent years: the sporting goods manufacturer Nike.

Its German business - the largest market on the continent for Nike despite its domestic competitors Adidas and Puma - generates enormous sales, but strangely enough no profit, which would be relatively highly taxed in this country. The trick: for every pair of sneakers etc., Nike Germany pays a license fee for patents, design, brand use etc. to Nike Ireland, where the tax rates are significantly lower. And strangely enough, always in the exact amount so that nothing is left over. Thank you very much.

My criticism is less directed at the company, whose nature it is to generate as much profit as possible. But rather to Ireland, which allows tax evasion at the expense of its European colleagues. But this will soon come to an end. Because the global minimum tax is just around the corner. The German tax office calls it "one of the biggest reforms in the international taxation of companies".

Until now, the taxation of multinational corporate groups has largely been organized on a national basis. A group only has to pay taxes on its profits in the countries in which it has a physical presence. This is becoming less and less important in the increasingly cross-border movement of goods and in the digital economy in general. And even within Europe, tax rates vary greatly: from 9% to 35% according to the OECD.

Now 138 countries around the world, including all G20 states, have committed to a global minimum tax of 15%. Experts call its introduction a "game changer" in the fight against decades of tax dumping by large corporations. Estimates are based on this. The global minimum tax will generate an additional 200 billion euros a year for the international community. This will finance their commonwealth, from which all citizens will benefit. And not just the investors on the stock markets and the shareholders of companies.

Personal happy moment of the week:

Senta Berger. One of our greatest actresses. As a young woman in the 60s and now, at 82, she still is. I have always admired her. For her artistic work and for her humanity. She fights for the protection of wildlife and against leukemia. And admitted to having an abortion in 1971 (!). She was and is a great woman. I bumped into her in the elevator today. And told her exactly that. She said I made her day. And she made mine.

I couldn't care less...

...for the carnival. On 11.11. at 11h11 on the dot, tens of thousands of "Jecken" celebrated the start of the Rhineland carnival and the foolish season in Cologne. As if the time before had been normal in any way.

As I write this...

...I'm fighting a nascent cold. And a stomach virus. And muscle tension. And tiredness. It's November. But maybe I'm just getting old.

Post Scriptum

Nikki Haley could become a serious challenger to Donald Trump in the Republican primaries. Last you heard from Ron DeSantis? Exactly.

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female-malice · 11 months

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“We are trying to show that the US is the easiest place to hide dirty money, which is a major problem not just in terms of national security, drug trafficking and kleptocratic corruption but also environmental crime,” said Ian Gary, the executive director of the Financial Accountability and Corporate Transparency (Fact) Coalition, which produced the report.

For the first time in 2021, the US came top in the world financial secrecy index released by the Tax Justice Networks, as a result of money laundering and gaps in its financial transparency laws.

The report identifies two principal flaws in the US regulation of financial flows from other countries: permissive rules on identification that allow the use of anonymous shell companies; and gaping holes in the anti-money-laundering framework that enable estate agents and refineries to accept payments without checking and disclosing the origin of funds.

Earlier this year, the Igarapé Institute estimated that environmental crime in the Amazon generated annual profits of between $110bn and $281bn, though it has been a relatively low priority for financial authorities in Latin America. Investigations by the Insight Crime website suggest the problem may be growing as links build between environmental crime, narco-trafficking and money-laundering networks in Brazil, Colombia, Peru and Ecuador.

The Fact report urges the US to take more responsibility because it is the primary destination for illegal funds, followed by the UK and its crown dependencies such as the Cayman Islands.

Among its recommendations are for the US administration to establish anti-money-laundering obligations in the real estate market, to provide support for Amazon nations to improve financial oversight, and to implement the Corporate Transparency Act, which would establish a database of true “beneficial” owners of all companies. It also calls on the US Congress to pass the Forest Act, which would add illegal deforestation to the US money-laundering statute.

“The US needs to step up,” Gary said. “Our report shows the importance of the US cleaning up its own financial secrecy house and the need to collaborate with law enforcement partners in the Amazon region to combat illegal financial flows … for the US to have such financial secrecy is a problem for the whole world.” (continue reading)

#cc

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hjellacott · 2 years

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Tiktok

The international version of the Chinese product Douyin.

Owned by: ByteDance Limited (Zìjié Tiàodòng).

Content censorship: They ban and suppress criticism of leaders like Xi Jinping, Vladimir Putin, Donald Trump, Barack Obama, mahatma Gandhi, and Recep Tayyip Erdogan. Also they suppress content informing of what happens at the Xinjiang Internment Camps (basically modern Chinese concentration camps to brainwash muslims), and the Uyghur genocide. They also ban users deemed too ugly, poor or disabled for the platform, censor political speech, block positive LGBT content, and set country-specific censorship rules.

It has been revealed that TikTok's Chinese employees could spy on users from all over the world, including obtaining their fingerprints and biometric data, aside from facial, which the Chinese government also has access to.

BYTEDANCE LTD.

Headquarters: Beijing and incorporated in the Cayman Islands (tax haven).

Founded by: Zhang Yiming, Liang Rubo, and more.

In partnership with: The Chinese Ministry of Public Security.

Also owned by: several companies with shares in it. For example a Chinese state-owned company owned by the Cybespace Administration of China and China Media Group.

Financed by: Hillhouse Capital Group )largest privaty equity fund in Asia), General Atlantic (US growth equity firm), Sequoia Capital (American venture capital firm), SoftBank Group Corporation (Japanese multinational conglomerate holding company focused on investment management), KKR & Co. Inc. (American investment company that manages alternative assets).

They've also created: Toutiao, a Chinese news platform that has been subjected to criticism for showing advertisement of products that Toutiao doesn't care if they're good or not, or even certified, after Toutiao employees said the company will even fake product certifies and allow illegal advertisement.

There are surveillance and privacy concerns with Bytedance company, with suspicions of its work for the Chinese Communist Party to censor content about human rights abuses.

#TikTok #china

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acquisory · 3 days

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Cross Border Merger and Acquisition – An Accelerative Approach

Ministry of Corporate Affairs (MCA) has recently vide notification dated 13th April, 2017 has notified Section 234 of the Companies Act, 2013 (‘Act’) which deals with Merger or amalgamation of company with foreign company now allowing the merger or amalgamation of Company with foreign company. The corresponding rules have also been notified in consultation with Reserve Bank of India (RBI) for implementation of the said section. MCA has issued the Companies (Compromise, Arrangements and Amalgamation) Amendment Rules, 2017 inserting Rule 25A and Annexure B in prescribing rules in the Companies (Compromise, Arrangements and Amalgamation) Rules, 2016 in relation to operation of section 234.

Regulatory Compliances

Section 234 of the Act provides for amalgamation of a foreign company incorporated in notified jurisdiction with a company incorporated under the provisions of the Act or under the provisions of the earlier Companies Act, 1956 and vice versa. It also provides that both inbound merger and outbound merger should be subject to prior approval of RBI and application of the other provisions of Chapter XV of the Act. Section 394 of the Companies Act, 1956 allowed inbound mergers only, there was no provision for outbound merger under the Companies Act, 1956.

Further, section 234 provides that a Scheme prepared for inbound merger/outbound merger may inter alia provide for payment of cash or issue of depository receipts or both as consideration to the shareholders of the merging company. For the purpose of Section 234, ‘Foreign Company’ means any company or body corporate incorporated outside India whether having a place of business in India or not.

Rule 25A prescribes as follows:

A foreign company, incorporated in any jurisdiction outside India, may merge with a company incorporated in India (“inbound merger”).

A company incorporated in India may merge with a foreign company incorporated in jurisdictions specified in Annexure “B” (“outbound merger”).

Both inbound merger and outbound merger require prior approval of RBI.

Both inbound merger and outbound merger should comply with the provisions of section 230 to 232 of the Act.

Concerned companies should file application with National Company Law Tribunal (NCLT) under provisions of section 230–232 of the Act and Rule 25A for obtaining approval of the NCLT.

In relation to outbound merger, the transferee company should ensure that the valuation conducted by valuers (being members of a recognized professional body in the jurisdiction of the transferee company) is in accordance with internationally acceptable principles of accounting and valuations and a declaration to that effect is filed with the RBI.

Annexure “B” specifies following jurisdictions in relation to outbound merger:

i. A jurisdiction whose securities market regulator is a signatory to the International Organisation of Securities Commission’s Multilateral Memorandum of Understanding (Appendix A) or a signatory to a bilateral MoU with Securities and Exchange Board of India; (or)

ii. A jurisdiction whose Central Bank is a member of the Bank of International Settlements (BIS) And

iii. A jurisdiction, not identified in the public statement of the Financial Action Task Force (FATF) as:

a) A jurisdiction having a strategic anti-money laundering or combating the financing of terrorism deficiencies to which counter measures apply; or

b) A jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the FATF to address the deficiencies.

List of jurisdictions covered under Annexure “B” indicate that outbound mergers seem to be possible with foreign companies incorporated in jurisdictions such as Mauritius, Netherlands, Singapore, Cayman Islands, Abu Dhabi, DIFC (Dubai), UAE, United Kingdom, United States etc.

Rolling out draft Regulations for Cross Border Mergers by RBI

RBI has proposed fresh Regulations under Foreign Exchange Management Act, 1999 for Cross Border Mergers on April 26, 2017 and has Invited comments from stakeholders. The draft guidelines proposed to be issued on cross border merger transactions pursuant to the Rules notified by Ministry of Corporate Affairs through Companies (Compromises, Arrangements and Amalgamation) Amendment Rules, 2017 on April 13, 2017. The Reserve Bank of India has proposed these Regulations under the Foreign Exchange Management Act, 1999 (FEMA) in order…

Read More: https://www.acquisory.com/ArticleDetails/47/Cross-Border-Merger-and-Acquisition-%E2%80%93-An-Accelerative-Approach

#merger and acquisition #m&a advisory services #m&a #cross border mergers #company law

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24business-news · 2 years

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Pawan Hans Sale: Cayman Islands company in winning bid allegedly fronted for notorious businessman from Zimbabwe

On 16 May, these reporters published in The Wire and NewsClick an article investigating the antecedents of a consortium of three companies that came together to set up Star9 Mobility Solutions Private Limited, which was announced as the winner of the auction to acquire Pawan Hans Limited, the public-sector helicopter service provider. The article pointed out that little information was available in the public domain about the Cayman Islands registered Almas Global Opportunity Fund (AGOF), the largest stakeholder in Star9 Mobility.

Described as Zimbabwe’s “Queen Bee,” Tagwirei is an adviser to Zimbabwean President Emmerson Mnangagwa and is said to be close to the ruling ZANU-PF (Zimbabwe African National Union-Patriotic Front). In a report in the Daily Maverick, a South African newspaper, former Zimbabwean Finance Minister Tendai Bitihas described Tagwirei as a person who controls that country’s food industry, 60% of its gold mines, two of its largest banks, and its sole gold refinery. Announcing the imposition of sanctions on Tagwirei in August 2020, the then US Secretary of State Mike Pompeo described him as a “notoriously corrupt businessman” who had assisted “senior Zimbabwean government officials involved in public corruption.”

How Almas Global acted for Tagwirei

From 2019 onwards, Sotic International Ltd, a Mauritius-registered trading company, went on a “mine-buying spree” in Zimbabwe, reported the Financial Times. Sotic was Tagwirei’s holding company where his accumulated wealth was allegedly hidden. In July 2021, The Sentry, a US-based anti-corruption not-for-profit organisation, released a report on Tagwirei’s alleged illegal activities (including money laundering), in which AGOF’s role has been elaborated on. According to The Sentry and various reports published by Bloomberg and the Financial Times in 2021, AGOF holds the majority stake in Sotic on behalf of Tagwirei.

The Sentry reported that Capital Horizons, a Mauritius based financial advisory firm with Magalingam Reddy and Shaan Kundomal at its helm, advised and helped Tagwirei create a complicated corporate structure to avoid scrutiny by banks and regulators. On the advice of Shaan, in October 2019, Sotic issued 9,000 convertible debentures to AGOF. Capital Horizons then arranged a subscription agreement and an assignment deed between Tagwirei and AGOF, which then sent $8.4 million to Sotic to acquire a 65 per cent stake in the company.

The chart above has been extracted from the report by The Sentry. It describes AGOF’s links with Sotic International.

AGOF’s representative refused to comment on the transaction to Bloomberg and stated: “As per the legal obligations which the fund has to abide, it cannot comment on any of its relationships in any manner whatsoever. We can confirm that the fund is committed to being responsible in all its legal and compliance obligations as a financial entity and adheres to all local and international laws.”

Interestingly, this is the same stand that AGOF took in the National Company Law Tribunal while refusing to disclose its source of funds and its subscribers or actual beneficiaries, which was elaborated on in our earlier article. In a subsequent email response to Bloomberg, AGOF said it has investors from the Persian Gulf, Latin America and India but refused to disclose their identities citing legal restrictions.

Amardeep Sharma, the managing director of AGOF, responded to the Financial Times, stating: “There is no relationship between the subscriber and the investee company in fund investments, and the fund cannot assign assets to individuals. To the best of my knowledge, does not control Sotic.”

AGOF supported Tagwirei even after US sanctions

On 5 August 2020, the US government sanctioned Tagwirei for utilising “his relationships with high-level Zimbabwean officials to gain state contracts and receive favoured access to hard currency, including US dollars.” In turn, Tagwirei allegedly “provided expensive cars to senior government officials.” An audit report prompted a parliamentary inquiry in 2019, which revealed that the Zimbabwean government had failed to account for about $3 billion disbursed under agriculture programmes championed by President Mnangagwa and largely financed by Sakunda Holdings. Soon after the US sanctions, the government of the United Kingdom also imposed sanctions on Tagwirei.

After sanctions were imposed by the US government, Tagwirei and the Zimbabwe government made various moves. The Sentry has disclosed a letter sent by Sotic in August 2020 to the directors of AGOF and another entity called Pfimbi Limited (that holds Sotic’s 35% of shares) to consider a proposal to set up a Zimbabwe-based subsidiary that would hold Sotic’s mining assets. The letter added that this was on account of the “negative press” received and because of the “increased international scrutiny” on Sotic.

In December 2020, the Zimbabwean government announced the formation of a public-private partnership company, Kuvimba Mining House Limited, that would hold some of Zimbabwe’s most valuable gold, platinum, chrome and nickel mines. The revenue generated by this firm was to be used to revive the country’s moribund economy and create a “safer platform” that would avoid the effects of the US sanctions.

Shareholding Pattern of Ziva Resources, Published by the Sentry

The Zimbabwean government-owned Herald quoted the country’s Finance Minister saying that the government holds 65% of Kuvimba through various government funds and other entities, while 35% is with Ziwa Investments, the Zimbabwean subsidiary of a Mauritius-registered company named Quorus. The government in Harare vehemently denied that Tagwirei had any involvement with Kuvimba.

The Sentry report noted that, surprisingly, the name of Kuvimba did not appear in the company registry of the government of Zimbabwe. Ziwa Investments, too, did not appear in the company records of the Mauritius government. However, an entity named Ziwa Resources did appear in the Mauritius government’s records. Interestingly, 65% of Ziwa Resources was owned by Almas Global Opportunity Fund, and the rest was in the hands of the Zimbabwe-registered Pfimbi Resources, whose directors were Tagwirei and his wife. It also turned out that Quorus and Ziwa Resources had the same directors, and they were closely associated with Tagwirei.

Infographic published in The Sentry’s report explains AGOF’s connection with the US sanctioned businessman in 2021.

In October 2021, the Financial Times quoted AGOF’s representative saying that Tagwirei doesn’t own shares in the fund anymore and that Almas was trying to get out of its investments in Zimbabwe. In a detailed recorded interview to this reporters on 27 May, Amardeep Sharma said that AGOF is still trying to exit its investments in Zimbabwe.

How much did the Indian government know?

On 16 May, the day we published our investigation into the antecedents of the buyers of Pawan Hans, various publications and websites reported that the privatisation of Pawan Hans had been “put on hold” by the Indian government. The reports added that the Department of Investment and Public Asset Management (DIPAM) in the Ministry of Finance was conducting a legal examination of an adverse order against AGOF by the NCLT (National Company Law Tribunal) that our previous report covered in detail and that the “letter of award” to the winning bidder, Star9 Mobility, would be issued only after the examination was concluded.

On 18 May, it was reported that AGOF would challenge the NCLT order in the National Company Law Appellate Tribunal (NCLAT), saying that the NCLT order was “abrupt and a bit premature.” The Economic Times quoted the fund’s spokesperson as saying, “AGOF is a fund with a pristine reputation.”

Almas Global’s reputation, however, may not be as pristine as it claims

This is not the first time a disinvestment exercise of the Government of India has come under scrutiny after completion of the process because of allegations against the reputation of the winning bidder. In January this year, the government had pulled the brakes on the privatisation of Central Electronics Limited (CEL) after its employees’ union moved court against the sale of the company to a little-known firm.

Did the government violate its own norms?

There are two government documents that suggest that allowing the sale of Pawan Hans to Star9 Mobility would constitute a violation of government rules.

The first is in an Office Memorandum issued by the Government’s Ministry of Disinvestment in 2001 (the ministry was shut down and merged into the Finance Ministry in 2004 as an independent department, which is now named the Department of Investments and Public Asset Management or DIPAM). The memorandum, which is included as a part of a DIPAM document titled “Guidelines for Qualifications of Bidders” applies generally to all disinvestments of government owned enterprises.

The memorandum (No. 6/4/2001-DD-II dated 13 July 2001) states that “any conviction by a Court of Law or indictment/adverse order by a regulatory authority that casts doubt on the ability of the bidder to manage the public sector unit when it is disinvested, or which relates to a grave offence” would disqualify a bidder in the disinvestment of a public sector enterprise. The memorandum adds that an appeal against such an adverse order would not overturn the disqualification as long as the appeal is pending.

On this ground alone, the order by the NCLT appears to fit the criteria of being an adverse order by a regulatory body that casts doubt on the ability of Almas Global to manage Pawan Hans. That Almas Global has announced that it will appeal the order before the NCLAT should not affect its potential disqualification. According to the procedure laid out in the memorandum, the government has to send a show-cause notice to Almas Global asking why it should not be disqualified from bidding for Pawan Hans.

Then comes the issue of financial eligibility. The government has not yet clarified whether Star9 Mobility was an eligible bidder before it was declared the winning bidder. The preliminary information memorandum for inviting expressions of interest in the “strategic disinvestment” of shares of the government of India in Pawan Hans stated that “Alternative Investment Funds (AIF) registered with (the Securities and Exchange Board of India) SEBI as per SEBI (Alternative Investment Funds) Regulations, 2012 are eligible to participate in the bid provided the concerned AIF has obtained “all statutory approvals” from the relevant ministry in the government of India, the Foreign Investment Promotion Board, the Directorate General of Civil Aviation, the Reserve Bank of India and so on.

An excerpt from the Preliminary Information Memorandum of Pawan Hans Limited. The document lists the eligibility criteria for the IBs

An additional criteria for AIFs is the definition of its net worth. While the bid conditions demanded that the collective net worth of the winning bidder be more than Rs. 300 crore, in the case of the Star9 Mobility Consortium, the net worth requirement had to be entirely covered by Almas Global’s net worth, as we detailed in our previous article. In clarifications that have appeared in the media quoting anonymous government officials, it has been reported that Almas Global provided documentation of its net worth being Rs. 691 crore.

However, the eligibility criteria state that in the case of an AIF, “net worth shall be substituted by maximum permissible investment limit for that particular AIF in a single investee entity.” This limit would be “considered as per independent chartered accountant/statutory auditor’s certificate not older than 3 months” from the date of the issue of the preliminary information memorandum.

Almas Global Opportunity Fund claims to be an Alternative Investment Fund (AIF). However, as of the night of 26 May, Almas Global’s name cannot be found in SEBI’s list of registered AIFs. How then did the government allow a non-registered AIF to participate in the bid? How did the government arrive at a figure for Almas Global’s maximum permissible investment limit? Who was the independent chartered accountant/statutory auditor that issued a certificate of this investment limit for Almas Global? Was the “statutory auditor” determined based on the statutes of the Cayman Islands (where Almas Global is registered), or as per India’s statutes?

As of 26 May 2022, Almas Global Opportunity Fund is not among the registered AIFs on the SEBI’s website

We sent ten questionnaires by email at noon on 25 May to the following individuals for a response:

Union Minister of Civil Aviation Jyotiraditya Scindia

Secretary, Civil Aviation, Pradeep Singh Kharola

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman

Minister of State for Finance and Corporate Affairs Pankaj Choudhary

Finance Secretary Dr TV Somanathan

Minister for Road Transport and Highways Nitin Gadkari (who, along with Sitharaman and Scindia is a member of the Cabinet Committee on Economic Affairs that approved Star9 Mobility’s bid for Pawan Hans)

Secretary, Department of Investment and Public Asset Management, Ministry of Finance, Tuhin Kanta Pandey

Captain Sanjay Mandavia of Big Charter

Sumit Sawhney of Maharaja Aviation

Amardeep Sharma of Almas Global Opportunity Fund

Response from Amardeep Sharma

At around 4 pm on the same day, Amardeep Sharma, who is based in Dubai, responded by contacting one of the authors over the phone. Sharma said that Almas Global Opportunity Fund has received the necessary regulatory clearances for the Pawan Hans deal, and that the fund has nothing to do with Tagwirei of Zimbabwe. Sharma added that he is confident of acquiring a controlling interest in Pawan Hans Limited, and that he would make it into a better company and employ many more people. Sharma said being from a small town in India (Korba, Chhattisgarh), he is a patriot, and wants India to receive foreign investments.

In a subsequent written response Sharma added the following statements :

“Almas Capital Limited is the 100% management shareholder and the Fund Manager of Almas Global Opportunity Fund. Almas Global Opportunity Fund has around USD 550 million worth of assets under management, and it has invested across the globe including exposure in the Indian markets. It has a substantial amount of liquid assets (market securities). I would disagree ,..Almas Global opportunity fund is more than 4 years old, a broad-based, well-diversified fund, and has invested across the globe in multiple asset classes, which has huge exposure in India.

I am not part of Almas Capital Limited or Almas Global Opportunity Fund anymore. Almas Global Opportunity Fund has two directors as required by the Cayman Islands. Almas Capital Limited manages the Fund. Vishal Rana is the director of Almas Capital Limited. AGOF has no relationship with Mr Kudakwashe Tagwirei, as he is not a subscriber of the Fund. The Fund has stringent compliance and code of conduct policies for its subscribers. We are in the process of exiting from Ziwa resources. We have not and cannot disclose the subscribers’ names as such information is confidential. We are a private fund. We are not a Foreign Portfolio Investment (FPI) company or fund, so we don’t have to be registered with SEBI. The Foreign Portfolio Investment Companies get registered with SEBI.”

After his written response, Sharma consented for an interview via video-conferencing. The full edited transcript of our interview with Sharma will be published shortly in The Probe.

Ministry of Civil Aviation seeks response from DIPAM

While we did not receive any answers to the questions we sent to government officials and ministers, at around 10:20 am on May 27, one of the authors was CC-ed on an email sent by an official in the Ministry of Civil Aviation to officials in the DIPAM and to employees of SBI Capital Markets. (SBI Capital Markets has been appointed as the transaction adviser for the entire process of disinvestment of Pawan Hans) The email forwarded to the DIPAM and SBI Capital Markets officials has the questionnaire sent by one of us to the secretary of the ministry of civil aviation and read:

“Reference trailing email, it is requested to furnish requisite information on the questionnaire…urgently”

No information was furnished by DIPAM or by SBI Capital Markets until publication. This article will be updated as soon as we receive further responses.

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hobbyetrade · 1 month

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Strategic Expansion: Exploring Global Business Opportunities with Smart Setups

In today’s interconnected world, businesses are increasingly looking beyond their borders to expand their operations and tap into new markets. Strategic expansion into global markets can significantly enhance a company’s growth potential, profitability, and brand recognition. However, choosing the right setup is crucial to ensuring a smooth and successful expansion. Two popular options for businesses looking to establish an international presence are offshore business setup and freezone business setup. This article explores these smart setups and how they can unlock global business opportunities.

Understanding Offshore Business Setup

An offshore business setup involves establishing a company in a jurisdiction outside the country where the main operations or owners are based. Offshore companies are often used by businesses to take advantage of favorable tax laws, privacy protections, and flexible regulatory frameworks. Common offshore jurisdictions include the British Virgin Islands, Cayman Islands, and the United Arab Emirates (UAE), particularly Dubai.

Key Benefits of Offshore Business Setup:

Tax Efficiency: Offshore companies often benefit from low or zero corporate taxes, making them an attractive option for businesses seeking to optimize their tax liabilities.

Asset Protection: Offshore jurisdictions provide strong legal frameworks for protecting assets from lawsuits, creditors, and political instability, ensuring the security of your business investments.

Confidentiality: Offshore companies enjoy a high level of privacy, with many jurisdictions offering confidentiality for shareholders and directors, shielding your business activities from public scrutiny.

Ease of Setup: The process of setting up an offshore company is typically straightforward, with minimal regulatory requirements and quick incorporation procedures.

Common Uses of Offshore Companies:

International Trade: Businesses involved in global trade often use offshore companies to manage their international transactions more efficiently.

Holding Companies: Offshore entities are frequently used as holding companies to own shares in other businesses or assets, reducing exposure to local regulations and taxes.

Intellectual Property: Companies can register intellectual property (IP) in offshore jurisdictions to benefit from favorable tax treatment on royalties and licensing income.

Exploring Freezone Business Setup

A freezone business setup in Dubai offers a unique opportunity for businesses to operate in one of the world’s most dynamic economic hubs while enjoying numerous benefits. Free zones are designated areas within Dubai that offer special incentives to attract foreign investment, particularly from companies involved in trade, services, and manufacturing.

Key Advantages of Freezone Business Setup:

100% Foreign Ownership: Unlike mainland companies in Dubai, freezone businesses can be fully owned by foreign investors without the need for a local Emirati partner.

Tax Benefits: Companies in free zones enjoy 0% corporate tax, 0% personal income tax, and exemption from import and export duties, similar to offshore setups.

Strategic Location: Dubai’s free zones are strategically located near major ports, airports, and business districts, providing easy access to international markets and supply chains.

Simplified Setup Process: Freezone companies benefit from a streamlined setup process, with support from free zone authorities in obtaining licenses, visas, and office space.

Industries Best Suited for Freezone Setup:

Trade and Logistics: Businesses involved in import/export, warehousing, and distribution often choose free zones like Jebel Ali Free Zone (JAFZA) for their strategic location and infrastructure.

Technology and Innovation: Free zones like Dubai Internet City and Dubai Silicon Oasis cater specifically to IT, tech startups, and innovation-driven enterprises.

Media and Entertainment: Dubai Media City is a dedicated free zone for media, advertising, and entertainment companies, offering a vibrant ecosystem and industry-specific facilities.

Offshore vs. Freezone: Which is Right for Your Business?

Choosing between an offshore business setup and a freezone business setup depends on your business objectives, target markets, and operational needs.

Offshore Business Setup is ideal for:

Tax Optimization: If your primary goal is to minimize tax liabilities while maintaining global operations, an offshore setup in a tax-friendly jurisdiction may be the best choice.

Asset Protection: Businesses seeking to protect their assets from legal risks or political instability often prefer offshore setups for their strong legal frameworks.

Global Trading: Companies engaged in international trade can benefit from the flexibility and efficiency offered by offshore entities.

Freezone Business Setup is ideal for:

Regional Market Access: If you’re looking to establish a presence in the Middle East, Africa, or Asia, a freezone setup in Dubai provides direct access to these markets with the added benefits of tax incentives and full ownership.

Industry-Specific Advantages: Free zones in Dubai are tailored to specific industries, offering specialized infrastructure and support that can accelerate growth and innovation.

Ease of Operation: The streamlined regulatory environment and comprehensive support services make free zones an attractive option for businesses that want to get up and running quickly.

Strategic Considerations for Global Expansion

When expanding your business globally, it’s essential to consider several factors to ensure a successful setup:

Regulatory Environment: Research the regulatory requirements of the jurisdiction you’re considering to ensure your business can operate smoothly and compliantly.

Market Access: Consider your target markets and choose a setup that provides easy access to these regions, whether through a freezone or offshore jurisdiction.

Operational Costs: Factor in the costs of setup, ongoing operations, and compliance to ensure your chosen structure aligns with your budget and financial goals.

Long-Term Strategy: Align your business setup with your long-term growth strategy, considering future expansion plans, potential risks, and the scalability of your operations.

Conclusion

Expanding your business globally requires strategic planning and a keen understanding of the available options. Whether you choose an offshore business setup for its tax advantages and asset protection or a freezone business setup in Dubai for its market access and operational ease, making the right decision can unlock significant opportunities for growth and success. By carefully evaluating your business needs and aligning them with the most suitable setup, you can position your enterprise for long-term prosperity in the global marketplace.

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