Hidden Havens & Stolen Money Unsafe Management.

Thanks to election season today Narender Modi and Finance Minister P Chidambaram both halfheartedly promise to bring back Black money. How ? Process remains a secret .Hope of recovery emerges only by applying `Reverse Hawala`.

Arvind Kejriwal sets the fearless ball rolling by spelling the Swiss Account No of Ambani Brothers in Public.

To understand Heaven-Hell divide allow me to take you back to my old published archives.

Heavens as we learn in religious teachings are known to provide unlimited luxury and rewards. People on earth are assumed to qualify for a heaven by virtue of good deeds.

Remove `e` from “Heaven” and we get a different paradise on this earth.“Tax Haven” is a hush-hush “Th” term coined by competitor banking system in early globalisation era. It points out a far away foreign offshore land used as a shelter or a hideout of accumulated money.

Heaven-code divides global citizens and stakeholders into “devils & angels”. Need and greed articulates a haven for hiding money on this sole living planet. This magic term spells empowerment with protection to crony few by accumulation of hidden money siphoned from the “parent producer” team and the country. This system which used to be a dream seller to 99% leaves the real producers of the hidden profit cheated. Majority are morally reduced as evil or lazy losers who are unable to covert the fast forward opportunity. Opportunity for selected few gets articulated by economic liberalisation. Hide and seek of this invisible money today in turbulent times is a global game in almost every part of the world. The booty popularly known as black money in India is termed as dirty money in Europe. In Africa and in the West it is identified as blood money. Politicians at large, pretending to be honest patriots, play the game often to keep the public engaged. People in a hell away from heaven remain patiently glued to their daily work with hope based on false spell of 1%.

Unlike feudal lords who used to identify a worship place used by people as a shelter or a hideout for the hard earned money, the modern industry uses offshore banks outside the country to park the loot. Such Banks are identified in countries like Switzerland, Netherlands, Luxembourg, Cyprus, Bahamas, Bermuda and so on. This list of havens continues to grow to compete with each other, to protect the money of investors in foreign lands. Corporates pay extra to CFOs to help them to hide money in a Heaven. In most of the popular havens, there is no `capital gains’ tax, no corporate tax, no income tax for say 20 years, no gift tax and no withholding tax. The dirty game cannot remain so hidden- if the bank, the booty and the sources of production are found in the same country. The trick here is customer loyalty and commitment of secrecy. No one shall come to the foreign bank to park dirty money if this activity is not kept secret. Result; the bank and the host country flourishes by providing tourism incentives and luring hospitality to patriotic capitalists. The honest production driven country having no tax heavens; remains poor. However this myth gets broken when a superpower applies diplomatic pressure. According to global media last year the Swiss Bank agrees to help American Parliament fighting recession to know the names of secret account holders having American citizenship. This proves that getting the hidden money back for saving the crisis is possible.

Waste Money Management- How it works ?

Today, Production is a growth issue. When loans via Banks are awarded to the producers of mines & factories, the money is treated as private not as public or national. Present system is engaged in maximising personnel profit by individual heroism of few trusted managers. Small groups and lobbies of excellence, working in a business team, having no ownership mechanism in industry helps that 1%.

What goes wrong in a business of Hell-Haven divide?

There is nothing wrong in collective hard work, national spirit and intentions of 99% to grow. Fault lies with the deliberate design and a disconnect between the wheel of production and the consumption controlled by that 1%.Unlike BPL (below poverty line) the standard in India which helps to measure poverty there is no line to regulate, limit and count the unlimited wealth of the filthy rich. We must see the corporate modus operandi in this chain of survival of Heaven-Hell divide. Corporate in nexus with politicians fails to audit and gives no participatory role to workers. Handling of public sector business by government in India is so weak and highly corrupt that even pilots and national hockey team are not paid in time and they go on strike in India. Laws get bend and twisted in favour of the corporate. In the wheel of production the industry produces goods using casual labour monitored by managers. Part time worker as real producer is sent off as soon as production is over. So there is no sense of belonging. If workers go on strike to increase their standard of living then the paid media, governments and corporate management continues to paint them as lazy, unproductive and anti-nationals. Media understands this corporate design but ignores it in favour of corporate and government. At times, media showcases Ministers on Television declaring India falling on 132^nd position from 128^th position as per the UNDP study of 200 countries. `Rewards & Punishment` as a check-balance stands teasing and unjustified. What stands good for 1% cannot help and support the rest.

CFOs assist industrialists to steal money from the production cycle and pump it in the market of speculation and gamble called share baazar. Consumption or Industrial sales “score board” is kept hidden from the stakeholders of production and from the public investors. Unlike the wheel of production, the cycle of consumption throws open-unequal sharing, unequal profit, unequal responsibility, unequal surplus control and its dissemination. Public, in most cases as investors feel cheated but get re-convinced by the so called share market experts & promoters to invest again and again. CFOs who are well versed with Banking Laws & its twisted version are hired in the country hosting production. Back in host country say in India, these financial managers advice the Capitalist not to re-invest in the parent country as the indigenous policy analysed by them is comfortably declared as non-encouraging for faster `jobless` growth of money.

Competition in the industrial playing field is good only when the completion forces the whistle blowers to blow off the rival company. Inhouse competition in production and sales helps but it fails to stop the transfer of money to havens. For more details read my article in Hichkey published on 14^th. Dec-2013 title : Stop Corporate Match Fixing : Apply Cricket Rules.

 

So long we have failed to question the base of a business paradigm that we must not expect a breakthrough and miracles. In the conventional system top leaders are expected to showcase all answers and solutions.

What if this does not work?

We often fail to encourage change because it directly shakes our blind trust, faith, beliefs and prejudices. Right from our childhood, we are programmed to escape from participating in deep experiences. We feel threatened to use simple enquiring tools like How! When! Why! Where! and so on. The nuts and bolts at the site of production and consumption need to be identified and this can help to generate black money Indigenous fund recycling monitored with strict regulations with more jobs is the only ways out.

Tax Havens-Why should we accept them ?

Helping less equals to transform into more equals can save the crisis. This is not a philanthropic business step but a long term human survival kit. It will ensure more productivity, sense of belonging, sharing, participation and `actual` consumption. If Africa and India is able to plug the weak production and sales format that allows such ongoing inhuman corruption how shall it honour the ink of its signature to UN Convention Against Corruption (UNCAC)? UNCAC clause (Article 51 & 52) has provision to help countries for recovery of hidden money in foreign lands. 

Solutions need to be rescued at gut level. If a child’s trousers get caught in the wheel, the bicycle chain is rotated back and not forward.

Stop Hiding Profit : Apply Cricket Swaraj.

Thanks to the better transparency and collective pressure put up by rich and poor. Score board cannot be hidden for long. Cricket still has fair rules unless the will or intention is not bought or pre-fixed. It remains more transparent then the `political cricket` played by billionaires in the production units and factories. During production the score board in the factories and agriculture fields indicating fixed audit is manipulated to ease out black money to Tax Havens.

A review of Bollywood blockbuster `Laagan` released in June-2001 can unfold several hidden lessons. Prayers to rain Gods failed. Harvest was poor & peasants protested. People wanted to change their destiny and get the taxes waved off.Indian king who was controlled by British Law, expressed his helplessness. Movey shows how an unwise colonial Tax System brings 99% indigenous farmers together. 

Small village of Champaner in North India, in 1890s decided to fight for its honour and self respect .Stakes were high. Deal was finalised. If village team beats the British team in a game of cricket , their taxes for three years would be waved off. If they loose, farmers shall pay three times of the land tax as crops. With no aids like proper batting pads and no training, the barefooted `desi` team of Aamir Khan was ready to face the challenge. 

Army Cricket team lost the match. Defeat of the English team forced a change in Army. Cantonment was disbanded. Captain Russell was forced to pay the taxes for the whole province as his “cricket deal” was unauthorised. He was further punished and transferred to Central Africa. 

Let us move out of the reel life. Independent India still fights for justice and cries for effective laws in real life. Unlike a bloody war the games demonstrate a country`s united readiness and courage. All rich and poor stakeholders in Cricket enjoy ball by ball micro details. Careful audit on each and every run scored and saved shows how important transparency is for maximising the fun and happiness. Recovery called “paisa vasol” is celebrated.

No one can steal or hide the profit of the runs scored and saved. Lost matches with weakness and dropped catches are analysed. The show goes on. Can we apply Cricket regulations & its transparency with peoples` participation and Citizens charter to our daily Governance ?

Today India is crying to get freedom from corruption. People work hard but team rewards of profits and security get stolen. In ancient India kings used to hide profit in temples in the shape of gold. Today, corporate pays extra to CEOs who in turn help them to hide money produced as profit in a Swarg called Tax Heavens. Corporate fix politicians to get their favours passed but keep the rest of the workers engaged in Industry insecure. 

CEOs help investors to steal money from the `wheel of production` and pump it in the `wheel of speculation` or `wheel of gamble` called share baazar. Share Baazar promises faster but unproductive, false and jobless growth. Government-Corporate-Bankers nexus in actual controls share market. This collaboration steals away the hard earned money of the majority. Stealing and hiding, the profit unlike in Cricket format, is made possible with a clever audit. Casual workers as soft targets are blamed for slow development. Profit monitoring team and production team is kept disconnected. 

In Cricket rich and poor love to keep the minute by minute statistic of runs produced with `profit & loss` in form of possibility to win & lose. My game, my nation, my joy, my information, my sharing with all concerned is excelled and shaped. Sticking points remain- collective ownership & holistic participation in this religion of Cricket. Imagine a cricket match with `no rules`, `no wide balls`, `no limited overs` and  no cheering &  hooting of crowds.

Connect these dots and we can see a boring game with no sense of belonging, no rewards and no punishments. Carry it forward and we see the pitch of Indian Ministry & Business work culture in India. Disconnected  lobbies of excellence as small islands in a business team is essential. Disconnection is designed in the system & is not a default. This keeps the system weak and unsafe. Result ? Ask the home ministry to produce a list of 50 Pakistan trained terrorists as happened few years ago and you shall find a goof up.

Right to recall the non performing player in a game is possible by Swaraj Bill. Same rule cannot be applied in competitive business of law making in the Parliament. Right to vote is only after 5 years. During last FIFA in South Africa, we learned as to why a player is replaced if football gets stuck with his foot for more then 20-30 seconds. Fast sharing of football in the team is essential. Audience can build a pressure and force a change via selectors.

Stakeholders in shape of audience and investors hoot and shout when the ball  is lost in the crowd even for few seconds. Politicians shout and delay for all wrong reasons to block a bill in the Parliament. The recent victim was Lokpal Bill now a weak Joke Pal. British used fast punishment as a tool to force discipline in their system of governance where as we after 48 years are unable to sketch citizen charter and Lokpal together in a single draft and make it a Law.

Luck of a team ?

The space called `luck` is reduced by practise, calibrations of skills and shooting of goals. The speed and demand to deliver every minute, every second is so high that there is no time to fall back on business directions and services of experts during the real match. When democracy is strong & stakeholders as watchdogs are alert, the luck is replaced by honest match winning skills. There is no twisting of rules and laws for personal gains. Fair wealth distribution based on skills can increase the income of 99% and the markets can survive. 

Information in a business pitch is blocked by match fixing. Profit transformed in shape of dirty money or black money parked in tax heavens, refuses to get recovered. Excuses are designed. Any country`s finance ministry knows how many notes were printed by the Reserve Bank and how much is parked outside as foreign currency.

Chances of corrupt match fixing is there but is very less or can be reduced. Pressure of `rich and poor` stakeholders with modern technology helps build a simple system which controls and checks the transparency. Referee as a `human control` can also make mistakes which people and player understand.

Politics and daily run of governance under ministry shall always remain boring if rules to control corruption are not fixed. From stadium to Sansad (Parliament) , people need to collectively apply simple Swaraj systems for a corruption free governance.

If egg is broken by outside force, life ends and if broken by inside force, life begins.

Let us play fair before it is too late.