MONTH THAT WAS
Black money – Tough stand by G 20
Paris: The world’s 20 most influential finance ministers are set to ask Europe to undertake “ambitious reforms”, commit to adequately capitalize banks and take onboard India’s concerns on toning up the tax information sharing mechanism to prevent evaders from stashing wealth in foreign banks.
“For the first time, the communiqué has addressed issues related to the importance of a comprehensive tax information exchange and encourage authorities to continue their work in the global forum to asses and better define the means to improve it,” said economic affairs secretary R Gopalan.
India, which already signed Tax Information Exchange Agreements with 16 countries, has found it is very cumbersome to get data related to the period before the treaty comes into existence. But several countries are refusing to share data citing legal differences between tax evasion, tax frauds and avoidance which are seen to be frustrating efforts to book evaders despite the G 20 pushing for it.
Facing pressure on cracking down on black money, finance minister Pranab Mukherjee has repeatedly raised the issue although he has not so far succeeded in getting a commitment from foreign countries to assist in recovery of wealth parked overseas.
While Gopalan did not elaborate on the issue of adequate capitalization of banks, the communiqué will force the government to ensure that it provides equity to public sector lenders that account for nearly three quarters of the Indian banking industry. After providing nearly Rs 15000 crore to state controlled lenders in the aftermath of the 2008 global financial crisis, the government has tightened its purse strings citing fiscal constraints.
State Bank of India which has been seeking to raise Rs 20,000 crore through a rights issue has been waiting in the wings for over two years as the government, which holds a 59%stake, has been unwilling to provide its share of Rs 12000 crore.
Following opposition from the United States, the G20 has also deferred an immediate decision on the $ 350 billion for the International Monetary Fund although the communiqué is going to talk of enhanced support to the World Bank. So far, however, there is no agreement on a mandatory financial transitions tax, something similar to the securities transaction tax, that India is opposing on the grounds that it will put further pressure on local financial institutions.
The G 20 finance ministers and central bank governors, who have been huddled in meetings, will issue a communiqué, that will lay the roadmap for a meeting of European leaders in Brussels. The general expectation is that even after the Brussels meeting of the European Council in October, the final word would be said in November when the G 20 leaders meet at Cannes. While focus will be on the eurozone crisis, the fear is that there is a possible danger of a contagion that needs to be prevented immediately.
Egypt’s deputy PM quits over sectarian violence
Cairo: Egypt’s deputy Prime Minister quit in protest against the way the military-led government handled the sectarian violence that claimed at least 25 lives in clashes between Coptic Christians, Muslims and the security forces, PTI reports. Hazem el-Beblawi, also the finance minister, said despite the “fact that there might not be direct responsibility on the government’s part, responsibilities, ultimately, with the government”.
“The current circumstances are very difficult and require a new and different way of thinking and working,” he was quoted as saying by state news agency ‘MENA’.
Beblawi was appointed the finance minister and deputy prime minister on July 16, in the latest cabinet reshuffle in response to demonstrations urging for reforms. The resignation comes after at least 25 people, including three soldiers, were killed in deadly clashes between Christians, Muslims and security forces in Cairo, the worst unrest since the uprising that toppled the Mubarak regime.
The violence erupted after Coptic Christians protesting against an attack on a church in Aswan clashed with security forces, forcing authorities to declare curfew in Cairo’s iconic Tahrir Square area.
The resignation of el-Beblawi comes as ruling military council has ordered a probe into the violence and Coptic Christians community launching a three-day fast to mourn those killed.
Coptics comprise almost 10 per cent of the population in Egypt and is considered the largest Christian community in North Africa.
The Supreme Council of the Armed Forces (SCAF) governs the country after a popular movement forced President Hosni Mubarak to step down in February.
111 charged in biggest credit card scam to hit America
New York: In the biggest identity theft scam in US history, 111 people, including at least 13 of Indian origin, have been charged by federal authorities for stealing credit card data of thousands of customers to buy high-end products worth over USD 13 million, including Apple gadgets and fancy bags from Gucci. Among those indicted in ‘Operation Swiper’ are bank tellers, store employees and restaurant workers who allegedly skimmed customers’ personal IDs. Many of the defendants are accused of going on nationwide shopping speers, staying at five-star hotels, renting luxury automobiles and private cards that contained the account information of unsuspecting American and European consumers.
Brain disease kills 54 kids in Bihar
Patna: Suspected encephalitis, a brain infection, has killed three more children in Bihar’s Gaya district, taking the death toll due to the disease to 54. The three children died in the 48 hours at Anugraha Narayan Medical College and Hospital (ANMCH) said the district health official. ‘Most of the children were from rural areas of Gaya and neighbouring districts,” said head of the children’s department at ANMCH A K Ravi, adding that more than 25 children have been admitted.
China rejects Pentagon report
Beijing: Dismissing the recent pentagon report that the People’s Liberation Army (PLA) has deployed nuclear capable missiles against India as “unfounded” and “contrary to facts”, China said the claims were made with “ulterior motives”.
“Such comments are unfounded. Both China and India have always been committed to developing strategic cooperative partnership for peace and prosperity”, a Chinese Foreign Ministry spokesperson said in a statement to PTI here.
“For many years, through the joint efforts made by two sides, China and India border areas have maintained peace and tranquility on the whole,” the spokesperson said when asked to comment on the Pentagon’s report.
The Pentagon report, titled ‘Military and Security Developments Involving the People’s Republic of China’ has said China has deployed more advanced and survivable solid-fuel nuclear capable CSS-5 MRBM missiles against India as a ‘deterrent posture’.
“Such comments are contrary to the fact and have been made with ulterior motives”, the brief communication said without elaborating.
This is the first time that China has reacted to the specific charge made by Pentagon on August 25 though Beijing has already protested to US voicing “strong dissatisfaction” and “firm opposition” to the report as a whole.
Lokayukta probes MP Govt’s ‘free’ dinner
Bhopal: The Madhya Pradesh Lokayukta is probing alleged irregularities in the hosting of a dinner for around 250 IAS officers with taxpayers’ money and has sought the state government’s reply on the issue by October 7.
Official sources said that over Rs 1.50 lakh was allegedly routed from the exchequer’s account to foot the bill of the dinner hosted late last year by State Chief Secretary Avani Vaish for the IAS officers, most of them serving in the state, at a private club here, reports PTI.
The dinner was hosted on October 8, 2010 under the aegis of IAS officers, Association Service Meet, a private amalgam. Also, about Rs 2.65lakh was spent on a ‘high tea’ party organised for bureaucrats by the MP Hospitality Office on October 9 and 10 at the Chief Minister’s residence and at a hotel maintained by Madhya Pradesh Tourism respectively.
“A case has been registered and investigations are on. We sought the government’s reply before October 7,” a Lokayukta officer said.
Ajay Dubey, member of corruption watchdog Transparency International, said, “It’s a sheer violation of government norms.” However, senior state government officials requesting anonymity maintained the dinner was purely a government affair and no rules were violated.
Paris: The world’s 20 most influential finance ministers are set to ask Europe to undertake “ambitious reforms”, commit to adequately capitalize banks and take onboard India’s concerns on toning up the tax information sharing mechanism to prevent evaders from stashing wealth in foreign banks.
“For the first time, the communiqué has addressed issues related to the importance of a comprehensive tax information exchange and encourage authorities to continue their work in the global forum to asses and better define the means to improve it,” said economic affairs secretary R Gopalan.
India, which already signed Tax Information Exchange Agreements with 16 countries, has found it is very cumbersome to get data related to the period before the treaty comes into existence. But several countries are refusing to share data citing legal differences between tax evasion, tax frauds and avoidance which are seen to be frustrating efforts to book evaders despite the G 20 pushing for it.
Facing pressure on cracking down on black money, finance minister Pranab Mukherjee has repeatedly raised the issue although he has not so far succeeded in getting a commitment from foreign countries to assist in recovery of wealth parked overseas.
While Gopalan did not elaborate on the issue of adequate capitalization of banks, the communiqué will force the government to ensure that it provides equity to public sector lenders that account for nearly three quarters of the Indian banking industry. After providing nearly Rs 15000 crore to state controlled lenders in the aftermath of the 2008 global financial crisis, the government has tightened its purse strings citing fiscal constraints.
State Bank of India which has been seeking to raise Rs 20,000 crore through a rights issue has been waiting in the wings for over two years as the government, which holds a 59%stake, has been unwilling to provide its share of Rs 12000 crore.
Following opposition from the United States, the G20 has also deferred an immediate decision on the $ 350 billion for the International Monetary Fund although the communiqué is going to talk of enhanced support to the World Bank. So far, however, there is no agreement on a mandatory financial transitions tax, something similar to the securities transaction tax, that India is opposing on the grounds that it will put further pressure on local financial institutions.
The G 20 finance ministers and central bank governors, who have been huddled in meetings, will issue a communiqué, that will lay the roadmap for a meeting of European leaders in Brussels. The general expectation is that even after the Brussels meeting of the European Council in October, the final word would be said in November when the G 20 leaders meet at Cannes. While focus will be on the eurozone crisis, the fear is that there is a possible danger of a contagion that needs to be prevented immediately.
Egypt’s deputy PM quits over sectarian violence
Cairo: Egypt’s deputy Prime Minister quit in protest against the way the military-led government handled the sectarian violence that claimed at least 25 lives in clashes between Coptic Christians, Muslims and the security forces, PTI reports. Hazem el-Beblawi, also the finance minister, said despite the “fact that there might not be direct responsibility on the government’s part, responsibilities, ultimately, with the government”.
“The current circumstances are very difficult and require a new and different way of thinking and working,” he was quoted as saying by state news agency ‘MENA’.
Beblawi was appointed the finance minister and deputy prime minister on July 16, in the latest cabinet reshuffle in response to demonstrations urging for reforms. The resignation comes after at least 25 people, including three soldiers, were killed in deadly clashes between Christians, Muslims and security forces in Cairo, the worst unrest since the uprising that toppled the Mubarak regime.
The violence erupted after Coptic Christians protesting against an attack on a church in Aswan clashed with security forces, forcing authorities to declare curfew in Cairo’s iconic Tahrir Square area.
The resignation of el-Beblawi comes as ruling military council has ordered a probe into the violence and Coptic Christians community launching a three-day fast to mourn those killed.
Coptics comprise almost 10 per cent of the population in Egypt and is considered the largest Christian community in North Africa.
The Supreme Council of the Armed Forces (SCAF) governs the country after a popular movement forced President Hosni Mubarak to step down in February.
111 charged in biggest credit card scam to hit America
New York: In the biggest identity theft scam in US history, 111 people, including at least 13 of Indian origin, have been charged by federal authorities for stealing credit card data of thousands of customers to buy high-end products worth over USD 13 million, including Apple gadgets and fancy bags from Gucci. Among those indicted in ‘Operation Swiper’ are bank tellers, store employees and restaurant workers who allegedly skimmed customers’ personal IDs. Many of the defendants are accused of going on nationwide shopping speers, staying at five-star hotels, renting luxury automobiles and private cards that contained the account information of unsuspecting American and European consumers.
Brain disease kills 54 kids in Bihar
Patna: Suspected encephalitis, a brain infection, has killed three more children in Bihar’s Gaya district, taking the death toll due to the disease to 54. The three children died in the 48 hours at Anugraha Narayan Medical College and Hospital (ANMCH) said the district health official. ‘Most of the children were from rural areas of Gaya and neighbouring districts,” said head of the children’s department at ANMCH A K Ravi, adding that more than 25 children have been admitted.
China rejects Pentagon report
Beijing: Dismissing the recent pentagon report that the People’s Liberation Army (PLA) has deployed nuclear capable missiles against India as “unfounded” and “contrary to facts”, China said the claims were made with “ulterior motives”.
“Such comments are unfounded. Both China and India have always been committed to developing strategic cooperative partnership for peace and prosperity”, a Chinese Foreign Ministry spokesperson said in a statement to PTI here.
“For many years, through the joint efforts made by two sides, China and India border areas have maintained peace and tranquility on the whole,” the spokesperson said when asked to comment on the Pentagon’s report.
The Pentagon report, titled ‘Military and Security Developments Involving the People’s Republic of China’ has said China has deployed more advanced and survivable solid-fuel nuclear capable CSS-5 MRBM missiles against India as a ‘deterrent posture’.
“Such comments are contrary to the fact and have been made with ulterior motives”, the brief communication said without elaborating.
This is the first time that China has reacted to the specific charge made by Pentagon on August 25 though Beijing has already protested to US voicing “strong dissatisfaction” and “firm opposition” to the report as a whole.
Lokayukta probes MP Govt’s ‘free’ dinner
Bhopal: The Madhya Pradesh Lokayukta is probing alleged irregularities in the hosting of a dinner for around 250 IAS officers with taxpayers’ money and has sought the state government’s reply on the issue by October 7.
Official sources said that over Rs 1.50 lakh was allegedly routed from the exchequer’s account to foot the bill of the dinner hosted late last year by State Chief Secretary Avani Vaish for the IAS officers, most of them serving in the state, at a private club here, reports PTI.
The dinner was hosted on October 8, 2010 under the aegis of IAS officers, Association Service Meet, a private amalgam. Also, about Rs 2.65lakh was spent on a ‘high tea’ party organised for bureaucrats by the MP Hospitality Office on October 9 and 10 at the Chief Minister’s residence and at a hotel maintained by Madhya Pradesh Tourism respectively.
“A case has been registered and investigations are on. We sought the government’s reply before October 7,” a Lokayukta officer said.
Ajay Dubey, member of corruption watchdog Transparency International, said, “It’s a sheer violation of government norms.” However, senior state government officials requesting anonymity maintained the dinner was purely a government affair and no rules were violated.
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