Le Château de Bel Ombre: Wine Pairing Dinner - with Château Clinet

Mr & Mrs Laborde, owners of Château Clinet will enlighten you on unique characteristics of the Pomerol terroir and viniculture creating a truly extraordinary wine dinner experience.

Menu à 5 plats en accord mets et vins – Château Clinet 1er Cru Pomerol

St Jacques poêlées à l'huile de truffe, huître pochée au vin blanc et son bouillon de poireaux glacé, gelée au miel et perles de yuzu.

Scallops pan-fried in truffle oil, oyster poached in white wine with its iced leek broth, honey jelly and yuzu beads.

Rias Baixas, Albariño, Martin Codax 2014

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Crème de châtaigne et copeaux de foie gras cru aux épices.

Chestnut cream and raw foie gras shavings with spices.

Pomerol, Chateau Clinet 2000 (Magnum)

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Filet mignon de veau au jambon San Daniele, concassée de tomates cerise, ratatouille de légumes locaux, sauce aux griottes.

Veal filet mignon coated with San Daniele ham, cherry tomatoes compote, local vegetables ratatouille, and berries sauce.

Pomerol, Chateau Clinet 2005

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Entrecôte Argentine parfumée à la poudre de cèpes, champignons des bois & pomme ratte sautée et purée de racine de taro au gingembre doux.

Argentine entrecote flavoured with porcini powder, wild mushrooms & sautéed fingerling potato and taro roots with sweet ginger.

Pomerol, Chateau Clinet 2010

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Biscuits de noisettes caramélisés, crémeux de chocolat au lait et fraise, cappuccino glacé.

Caramelised hazelnut biscuit, creamy milk chocolate and strawberry, iced cappuccino.

Pomerol, Chateau Clinet 2012

Wipro to Acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry

Wipro Ltd., a leading global information technology, consulting and business process services company today announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry for a purchase consideration of USD 130 million.

Wipro currently is one of the leading providers of Business Process Services (BPS) to some of the global investment banks. The company specializes in Platform-led Transformation and Utilitybased Offerings in Reconciliation, KYC, Settlements, Middle Office, Asset Servicing, Syndicated Loans and Reference Data Solutions, with coverage across asset classes. These credentials of Wipro are primarily on the Sell-Side and this acquisition will add similar capabilities on the Buy-Side.

Viteos was founded in 2003 and is headquartered in Somerset, New Jersey. The Viteos Group provides customized straight-through-processing and integrates post-trade operations across every asset class, currency, border or structure for the alternative investment management industry in the United States, Europe and Asia. It is a leader in shadow-accounting services and offers a full range of middle and back-office outsourcing through its 400+ employees.

Viteos licenses its proprietary platform which offer transformation and integration of post-trade operations. This platform can be leveraged to launch solutions across other segments of Capital markets. These technology-based solutions will bring in non-linear and higher revenue realization. Viteos will retain its identity to leverage its brand in the Buy-Side and expand its offerings into the larger asset management industry with the backing of Wipro's size and presence. The management team at Viteos will continue with the business and drive the platform based outsourcing business services.

"The IT services industry is moving to an 'as-a-Service' model, and the future of BPS is going to be BPaaS (Business Process as-a-Service). Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction/outcome-based pricing models. Viteos will further our strategy in the Capital markets domain," said Shaji Farooq, President & Chief Executive, Finance Solutions, Wipro Limited.

"We welcome Viteos employees to the Wipro Family. We are excited to join hands with Viteos and expand our Capital markets portfolio in fund accounting services and enhance our Business Process Services capabilities," said Nagendra Bandaru, Senior Vice President and Head - Business Process Services, Wipro Limited. He added, "Viteos brings with it experienced leadership, domain expertise and unique BPaaS capability. We believe we will be able to leverage synergies to offer platform-based transformational services to our customers and continue to dominate the Capital markets outsourcing space."

"Our search for a global partner who gives Viteos exceptional market reach in expanding ourpresence while preserving the entrepreneurial characteristics of Viteos culminated with this acquisition by Wipro. We are excited to be part of a trusted global leader and the transaction is a further recognition of our value and validation of our commitment to deliver excellence through our investments in people, process and technology. It gives me immense pleasure in continuing to be part of a growth story that can reach even greater heights," said Shankar Iyer, CEO & founder of Viteos Group.

The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 31, 2016.

An 18th-century outrage: Lèse humanité

By the standards of boats built by desert-island castaways, the Providence was a thing of beauty. Thirty-three feet long, and made of timber from the shipwreck that had stranded them, she was simple but seaworthy. She also offered the only viable route back to civilisation for more than 200 refugees. As a first step, that meant a westward journey of 500km or so to Madagascar, where the wrecked ship had come from. If you arrive on a ship—a brand-new transport three-masted schooner belonging to the French East India Company—you cannot all leave on a raft.

Fact, fiction or just raw speculation

This article tackles the common arguments made by NGOs against IFCs and the data underlying that rhetoric. It also looks at the role IFCs can and should play in the economic development of developing countries.

Trusts & Trustees

Offshore Pilot Quarterly (December 2015, Volume 18 Number 4)

Chekhov’s Credo

In last quarter’s newsletter I introduced readers to Drake Island which in this century would be struggling, as other Caribbean British dependencies are, with the mounting demands for transparency with the full backing of the Organisation for Economic Co-operation and Development. Perhaps “envelopment” is more suitable than “development” in its title as this bureaucratic behemoth, without any legal standing, smothers financial services centres (some of them islands) to the point of operational asphyxia, with its diktats. Having said that, I have commented before that it was the existence in the last century of offshore financial centres that shared some, if not all, of Drake Island’s characteristics, that materially affected, and prejudiced, the OECD’s approach; to deny this would make one just as guilty of bias as the OECD is with its twentieth-century broad-brush approach.

The Victorian poet Samuel Butler said: “I do not mind lying, but I hate inaccuracy”. “Treasure Islands”, written by Nicholas Shaxson, is a thoroughly good read and in some instances rivals the intrigue engendered by the fictitious Drake Island; however, accuracy and inaccuracy collide on more than one occasion. The subject matter is all about the world of international finance but its title carries a not very subtle subliminal message that is suggestive of “Treasure Island” by Robert Louis Stevenson, a book which I read as a boy about piracy and buried treasure. Had I not spent almost a decade on Caribbean Islands, perhaps I would assume that such places are the very termini of turpitude, where mountebanks, malfeasance and mendacity merge. Offshore islands may sometimes serve as a convenient conduit, but they are more effect than cause: for that, look onshore (more later). 

The American lawyer, G. Warren Whitaker, said in the June issue of Offshore Investment that “Americans need to understand that the neutrality and secrecy offered by offshore financial centres has served and continues to serve a legitimate and valid purpose in many situations. On the other hand, those centres could have been quicker to realise that the major democracies are in a different category from corrupt and repressive countries, and they could have been more discerning about accepting non-compliant clients from those countries, which would have avoided their being compelled to disclose them now.” Drake Island syndrome?

Not just Americans, however, need to understand one’s legitimate desire for secrecy of some of one’s affairs – and I’m not referring to buried treasure on tropical islands where bankers substitute for buccaneers. It should be a right, one that must only be denied by a government when prima facie evidence warrants otherwise. No matter how intrusive Facebook and video surveillance becomes, the human yearning to have exclusive knowledge of some things will remain a fundamental part of ourselves. Anton Chekhov put it this way in “The Lady with the Little Dog”: “He had two lives: one, open, seen and known by all who cared to know, full of relative truth and of relative falsehood, exactly like the lives of his friends and acquaintances; and another life running its course in secret. And through some strange, perhaps accidental, conjunction of circumstances, everything that was essential, of interest and of value to him, everything in which he was sincere and did not deceive himself, everything that made the kernel of his life, was hidden from other people”.

The depth of disclosure of one’s affairs to government is going to increase and in the last newsletter I had mentioned regulation as being either as light as a feather duster or as heavy as a sledgehammer. I reiterated the point again in November’s Latin Letter, using the analogy for the column’s title. The application of either approach requires more than a surface knowledge of the business being regulated, but so often that is what the offshore industry ends up with; not only does the wrong weight of control result, but the seasoned professionals, rightly, are offended by the (often) amateur hand applying it. This month’s Latin Letter (Unholy Deeds and the Devil) extends the criticism to compliance departments in the private sector.

Drake Island – Part 2

In part 1 the scene was set to illustrate the freewheeling environment in which corrupt behaviour and cowboy practitioners flourished. There was an inexperienced attorney general, a self-serving government minister and, with few exceptions, local and expatriate civil and crown servants willing to let sleeping dogs lie. One of those exceptions was the police commissioner and he is where we take up the story.

Arthur Bradfield had been liaising with the FBI’s Miami office for several weeks and warrants for the arrest of Burridge and Wilkes had been issued. Their whereabouts were unknown but it was suspected from circumstantial evidence that they were both in Costa Rica. The two Canadians had claimed that they were not the owners of Blighpark International and only served as advisers and consultants. It was difficult to prove otherwise from the public records. The amended Companies Ordinance permitted the registration of companies with only 1 director and a secretary. One person or a company could be both the director and secretary and in this case that person was Martin Kelly. Shares did not need to be in the owner’s name because bearer shares or nominee shareholders were permitted. Effectively, with a lawyer or other third party serving as the putative director and secretary, ownership could be hidden. The island’s confidentiality statute thwarted the FBI and the cheated policy holders of Blighpark International. From records provided by the FBI it was clear that over the last couple of years the insurance company had deposited several millions in Drake National Bank, and Kelly was the common denominator.

Bradfield had retired from the Metropolitan Police in London after over 30 years service before taking up his appointment on the island 3 years earlier. He had reached the rank of Chief Superintendent in the commercial crimes and fraud section where he had worked for several years. He had developed a nose for trouble and Kelly was trouble. Although he had only met the Irish lawyer at public functions, such as the Governor’s frequent cocktail parties, he knew that the lawyer was close with Melvin Browning, the Chief Minister, who Bradfield thought was thoroughly untrustworthy. He wouldn’t be surprised if the Chief Minister wasn’t involved in the drug smuggling traffic that passed through the island and which stretched the Police Commissioner’s financial resources and manpower to the limit. Bradfield was astute, intelligent and determined to do his job well. Since his appointment he had made a concerted effort to crack down on the corruption in the police force. It made him very unpopular, especially when he proposed recruiting policemen from other Caribbean islands to try and dilute the incestuous family links that were inevitable on such a small island with a population of just over 4000 people. Juries, for instance, had members who were cousins of the accused.

Bradfield’s arch enemy was Austin Davey, Deputy Police Commissioner and officially designated as his counterpart. The expectancy was that, eventually, all key government posts would be filled by Drake Islanders. Many served in the role of counterpart, but the reality was that few counterparts had either sufficient education or background experience to handle the work; their apprenticeships were long and often ended when they resigned in frustration. And so the farce would start all over again, fuelling the deep resentment already felt towards the expatriates. Davey was a rabid nationalist who supported George Cowley’s opposition party that wanted Drake Island to have its independence. He was unreliable and underhanded with little dedication to his work. The Police Commissioner was certain that any sensitive information, especially of a political nature, that Davey got his hands on would be passed on to Cowley for use, if possible, against his sworn enemy, the Chief Minister, Melvin Browning. To compound matters, Bradfield’s secretary was Davey’s sister-in-law and so he preferred to personally type the confidential memorandum concerning Blighpark International. Even the extra copy he would keep for his records would not be filed in his office, but in the 4-drawer filing cabinet which he kept at his house.

The confidential memorandum had been finished early Wednesday afternoon and he intended to drive to the Chief Secretary’s offices which were on the outskirts of Elizabeth, the island capital and centre of commerce, later that afternoon. But he was telephoned by the Drake Island Governor, Gerald Tewkes-Rigby, and asked to attend a meeting the Governor was having with the Director of Civil Aviation and a senior agent from the United States Drug Enforcement Agency. Doubtless more evidence had been found that airport staff were helping with the shipment of drugs destined for Miami or Puerto Rico. Bradfield decided to postpone seeing John Ainsby until the next morning, which meant that he would take the confidential memorandum home with him in his briefcase. It was likely that the Governor’s meeting – if it followed the course of previous ones – would last a couple of hours so he wouldn’t be returning to police headquarters afterwards. He checked his watch, snapped his briefcase shut, and left for the Governor’s office in Elizabeth.

As he drove to the meeting, he went over in his mind what the possible significance of the Blighpark Insurance enquiry might be. His experiences made him sceptical about coincidences. Kelly represented the insurance company and perhaps its main bankers. Bradfield knew that before Martin Kelly’s arrival on Drake Island in 1978 he had lived for about 5 years in the Cayman Islands. Following political tensions in the Bahamas, the Cayman Islands had been adroit at taking advantage of the situation and had offered attractive legislation, emphasising the fact that it was a highly stable British colony. In those days, however, Grand Cayman was also underregulated and was a haven for financial manipulators. Today, it is a premier offshore destination in the financial services industry and, as one Bank of England official wryly put it, “it now displays the righteousness of a converted whore.”

Shortly after the FBI enquiry involved Drake Island, Bradfield, suspicious of the lawyer’s link to Drake National Bank and Blighpark International, had contacted the Cayman Islands police to see if a background check would reveal anything. It most certainly had. Kelly had joined a one-man practice in Cayman after being recruited in England and within a year he had been connected peripherally with a mining fraud in Mexico. Kelly had been reprimanded by the law society in Cayman for unprofessional conduct. This was followed a few years later by a Cayman land price-fixing scandal on 7 Mile Beach near the end of 1977 which implicated several Caymanians, including high-ranking government officials. Kelly left several months later under a cloud and set up his office on Drake Island. The Cayman police file pointed to Kelly’s involvement in the distribution of false documentation but he had left the Cayman Islands before that line of enquiry was opened. It was rumoured that he had earned several hundred thousand dollars for his part in the earlier Mexican mining swindle and, as in the case of Blighpark International; he had represented the offshore company at the centre of the mining fraud. It was just as well that he was a lapsed Catholic and avoided the confessional.

The policeman stopped in the small parking area in front of the Governor’s office and got out of his car. He locked the brief case in the trunk and made his way towards the single storey white concrete building. He would visit the Chief Secretary first thing tomorrow, and as he walked up the office steps, he was thinking that the timing was just perfect. This Jeffries from the Foreign Office was apparently going to be looking into offshore banking controls and he gathered that the consultant had Whitehall clout; he was to report his findings to WIAD direct rather than the usual route through the Governor.

Bradfield hadn’t met Alan Jeffries yet, but he would do so on Friday at the welcoming cocktail party that the Governor had arranged for the consultant. Who knows? If the suspicions laid out in his memorandum to the Chief Secretary were correct, Mr. Kelly might not find it so easy this time to extricate himself. Bradfield was looking forward to talking to Jeffries. Unfortunately, before the two could meet, Bradfield would be dead.

Singing in the Lifeboats

Would Jeffries make a difference? In this backwater of Britain’s eclipsed empire it was only too clear that regulation and reality were strange bedfellows. The story might have ended, but not the discrimination and hypocritical behaviour of some OECD members.

The United States of America, according to the Tax Justice Network, is now the third most secretive jurisdiction for the purposes of corporate camouflage and it has failed to participate in the OECD’s Common Reporting Standard drive. Its absence from the list of countries endorsing it (almost 100) is unexpected, just like the dog that didn’t bark – whether it was the lady’s little dog or not. In this instance the US, once again, not only rules the waves, but waives the rules. It should be at the forefront of CRS and in this instance the “indispensable nation” is the “indefensible nation”.

But wherever men live and whatever they do, Socrates was right to remind us that the more men think of making a fortune, the less they think of virtue; and the greatest transgressions to date have not needed assistance from any offshore financial services centre, and where none of the worst examples of either corruption or fraud have taken place. I believe that will remain so.

Voltaire (an intellectual giant of the Enlightenment) arrived at the court of Frederick the Great and subsequently operated a bond-market scam that could have bankrupted the Prussian Exchequer. Needless to say, relations with the king became strained (as did so many of Voltaire’s relationships) and doubtless it helped that the Frenchman viewed life in disastrous terms: “Life is a shipwreck, but we must not forget to sing in the lifeboats”. A fitting thought, perhaps, for offshore financial services providers who, as far as the OECD goes, are in the same boat, and gasping for breath.

Offshore Pilot Quarterly (independent writing for independent thinkers) has been published since 1997 by Trust Services, S. A. and is written by Derek Sambrook

IMF Staff Completes 2015 Article IV Mission to Mauritius

An International Monetary Fund (IMF) mission led by Mauro Mecagni visited Port Louis on December 2–16, 2015 to conduct the discussions for the 2015 Article IV consultation with Mauritius.

At the conclusion of the visit, Mr. Mecagni issued the following statement:

“The Mauritian economy has remained resilient in 2015, despite some difficult domestic developments and the volatility affecting other emerging and frontier markets. The economy continued to grow at the respectable rate of over 3 percent in per capita terms, and inflation fell to an historical low (1 percent in November 2015). The fiscal deficit for the first half of the year was lower than projected, although public debt rose due to the injection of public capital in two banks, and the impact of the rupee depreciation on external debt. Excess domestic liquidity was significantly reduced; the external current account deficit has declined; and international reserves have risen to the equivalent of over 6 months of imports.

“The main challenges for 2016 and beyond pertain to reducing public debt through a growth-friendly and pro-poor medium-term fiscal consolidation effort; further increasing the resilience of the financial sector by strengthening the macro-prudential oversight framework ; and addressing the reforms needed to transition to high-income status, in particular with a view to improving productivity and competitiveness. Addressing infrastructure bottlenecks, skill mismatches and gender inequality in the labor market will also be important.

“The medium-term outlook is favorable if sound policies continue to be implemented. The implementation of new public investment programs would catalyze private investment and help to raise GDP growth to close to 4 percent in 2016 and beyond, with rates of inflation below 3 percent. Higher imports associated with these investment programs are likely to widen the current account deficit to some 6–6.5 percent of GDP. International reserves are nonetheless projected to strengthen gradually, supported by continued capital inflows as Mauritius seeks to leverage its financial sector as a hub to channel significant investments to Africa and Asia.

“The 2015/16 fiscal stance accentuates the expansionary trend of recent years, and fiscal space needs to be created to implement the government’s ambitious investment program while reducing public debt in the medium term. Reduction of subsidies, better targeting of social assistance programs and improved efficiency in public enterprises could yield significant gains in tilting the composition of government expenditure toward infrastructure, human capital development spending and pro-poor programs. There is also scope to increase revenues, including by reducing tax exemptions and further broadening the tax base. The mission welcomes the authorities’ continued commitment to fiscal transparency, as evidenced by the decision to gradually eliminate special funds by 2018, and the ongoing preparation for divestiture of assets targeted at debt reduction.

“Given the low inflation environment, the current monetary policy stance is broadly appropriate. The mission welcomes the Bank of Mauritius’ successful efforts in mopping up excess domestic liquidity in the banking system, and concurs with the authorities that this process should continue at an appropriate pace in order to enhance the responsiveness of market interest rates to changes in the monetary policy rate. The authorities are also committed to strengthening financial sector supervision, improving the regulatory framework, and further deepening coordination among regulatory agencies in order to boost the resilience of the financial sector to both domestic and external shocks.

“Going forward, further reforms need to be implemented to take the next leap in development. These include measures to stimulate female labor force participation, which would help mitigate the effect of the projected decline in Mauritius’ labor force in the next decades; investments in interconnectivity, transportation and communication; and strengthening the institutional framework to lower the cost of doing business and preserve Mauritius’ hard-earned macroeconomic and financial stability.

“The mission would like to thank the Mauritian authorities for their excellent cooperation, and the very productive discussions. The IMF stands ready to support the authorities’ reform efforts, including through the provision of technical assistance, and looks forward to a continued and fruitful policy dialogue in the period ahead.”

The mission met with Prime Minister Anerood Jugnauth, Vice Prime Minister and Minister of Tourism and External Communication Xavier-Luc Duval, Minister of Finance and Economic Development Seetanah Lutchmeenaraidoo, Governor of the Bank of Mauritius Rameswurlall Basant Roi and other senior officials as well as the private sector, academia and civil society.

Victim of Success: The Rise and Fall of BlackBerry

Though BlackBerry has less than 1% of the smartphone market share today, it once had more than 50%. The question is how such a successful company could fall so far. Journalists Jacquie McNish and Sean Silcoff provide many of the answers in their book, Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry.

Wharton marketing professor Americus Reed recently had an opportunity to talk with McNish about what we can learn from the rise and fall of BlackBerry.

An edited transcript of the conversation

Experience sensational flavors by 2-Star Michelin Chef at Outrigger Mauritius

The Outrigger Mauritius Beach Resort has announced that 2-star Michelin chef Sidney Schutte will prepare a special menu at the Plantation Club in the resort for four nights, Jan 8-11.

Netherlands-based super-chef Schutte will prepare a six-course set gourmet menu at the Outrigger. 

Schutte rose to culinary fame via three different Michelin star restaurants in the Netherlands and Hong Kong. Last year as executive chef he led the Librije’s Zusje restaurant in Amsterdam to earn 2 Michelin stars after only seven months of operations. 

Schutte will be assisted January 8-11 by the current executive chef at the Outrigger, Geert-Jan Vaartjes. The two chefs worked together at the 3 Michelin star restaurant De Librije in Zwolle in the Netherlands where Schutte was formerly executive chef. 

“Sidney is one of the most talented and creative chefs I ever worked with,” says Vaartjes of his former boss.  

After opening the Librije’s Zusje in Amsterdam in 2014, Sidney and his kitchen quickly earned 2 Michelin stars. 

“As far as I know this has never happened before in Europe, within seven months of opening,” says Vaartjes with admiration. 

Schutte first built his reputation at De Librije in Zwolle in the Netherlands as sous chef when it had a 2 Michelin star rating. He helped raise it to 3 stars and became executive chef.   

“It was the restaurant that put the Netherlands on the map as a culinary destination,” says Vaartjes. 

Schutte was then awarded SVH Meesterkok, the highest recognition that a chef can achieve in the Netherlands. Testing new frontiers, Schutte then became sous chef rising to executive chef at the 2 Michelin star Amber restaurant in Hong Kong. In 2014 Schutte returned to the Netherlands as executive chef at Librije’s Zusje. 

In Mauritius, Schutte will work closely with Vaartjes to create a seafood gourmet six-course set dinner at the colonial-style Plantation Club at the Outrigger. The seafood extravaganza will feature amuses-bouches such as Smoked King Crab, Herring, and Salmon Skin Crackers. The main courses include Perle Imperial Caviar, Charred Langoustine, Carabinero, Sepia (fermented crabs sauce with octopus, bergamot and black olives), Lamb Filet and Tongue, and Black Winter Truffles.

Mauritian Economy on the right track, says IMF Mission Director

The Mauritian economy is evolving positively with an achievable growth rate within the range of 3-4 per cent, which is a respectable accomplishment in terms of per capita as compared to other countries across the world, said the International Monetary Fund (IMF) Mission Director for Mauritius, Dr. Mauro Mecagni.

Dr Mecagni made this statement this morning during a courtesy call on the Prime Minister, Sir Anerood Jugnauth, at the Treasury Building in Port Louis in the presence of the Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, the Governor of the Bank of Mauritius, Mr R. Basant Roi and the Financial Secretary, Mr Dev Manraj.

The IMF mission Director for Mauritius spoke of the inflation rate which is under control in addition to the positive growth rate which he said are the results of three factors namely:  favourable external factors particularly the decline in fuel prices; careful management of the excess of liquidity by the Central Bank; and fiscal management. He commended the Mauritian authorities for adopting a combination of sound, domestic and macro-economic management measures to keep the economy on the right track.

Moreover, he outlined the vulnerability of the economy which is exposed to external risks owing to its incredibly open economy both from a macro-economic and financial perspective. On that score he proposed to reactivate the Financial Stability Committee to ensure amongst others, greater coordination of the financial system among the various institutions; better monitoring of the situation; and adoption of necessary measures in the wake of an impact from the external spillovers.

According to him Sub-Saharan Africa remains the fastest growing region in the world despite the volatility in financial markets and commodity prices coupled with other external factors that may cause hindrance to economic development.

For his part, the Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, spoke of the commendable job of the FMI, in collaboration with the various stakeholders, in devising ways and means to ensure that no external systemic crisis impacts negatively on the Mauritian economy.

The IMF delegation is in Mauritius in the context of the 2015 Article IV Consultations. The delegation also had working sessions with various stakeholders.

ITEP - Delaware: An Onshore Tax Haven

When thinking of tax havens, one generally pictures notorious zero-tax Caribbean islands like the Cayman Islands and Bermuda. However, we can also find a tax haven a lot closer to home in the state of Delaware – a choice location for U.S. business formation. A loophole in Delaware’s tax code is responsible for the loss of billions of dollars in revenue in other U.S. states, and its lack of incorporation transparency makes it a magnet for people looking to create anonymous shell companies, which individuals and corporations can use to evade an inestimable amount in federal and foreign taxes. The Internal Revenue Service estimated a total tax gap of about $450 billion with $376 billion of it due to filers underreporting income in 2006 (the most recent tax year for which this data is available).[i] While it is impossible to know how much underreported income is hidden in Delaware shell companies, the First State’s ability to attract the formation of anonymous companies suggests that it could rival the amount of income hidden in more well-known offshore tax havens.

A Mauritian Icon, Shangri-La’s Le Touessrok Resort & Spa, Ushers in a New Era of Luxury

Shangri-La’s Le Touessrok Resort & Spa, Mauritius, the legendary 34-acre waterfront Mauritian hideaway, is celebrating its grand opening tomorrow on 11 December with over 200 guests and dignitaries including The Right Honourable Sir Anerood Jugnauth, GCSK, KCMG, QC, Prime Minister of the Republic of Mauritius.

The celebratory evening will see the resort showcase Mauritian culture through entertainment, gastronomy and revelry, while a specially commissioned performance, staged by more than 30 artists, will narrate the story of Le Touessrok through performing arts, music and a light show that culminates in a fireworks display to dramatically mark the rebirth of the personal paradise. 

Located on the east coast of Mauritius in one of the island’s most breathtaking bays, Shangri-La’s Le Touessrok Resort & Spa has been extensively remodelled; its 200 rooms and suites offer infinity views across the turquoise waters of the Indian Ocean and guests have exclusive access to Ilot Mangenie, a private island. In addition to dining concepts provided by five restaurants and three bars, the new CHI, The Spa at Shangri-La focuses on holistic and Ayurvedic wellness in its eight treatment rooms. Two swimming pools, an 18-hole par 72 championship golf course and a kids club complete the leisure experiences.     

On arrival at the resort, travellers will feel like they are entering a private residence as they are personally met and transported to the entrance of the property. Here, a hostess dressed in a contemporary sega dress welcomes guests with a refreshing hibiscus infusion made with local black tea, Chinese green tea, combawa and sugar cane – reflecting a sense of place and Shangri-La’s Asian influence.

Surrounded by magnificent views of the sea and an indigenous landscape, Shangri-La’s Le Touessrok Resort & Spa’s understated approach to luxury has been reimagined using the finest craftsmanship to transform organic and recycled materials into chic and contemporary furnishings. Sustainable and timeless, the concept flows through the resort’s low-rise buildings and tropical light-filled spaces, accented by wooden structures and hand dyed linen.     

Idyllically centred on the beach, all accommodation in the three wings – Coral, Hibiscus and Frangipani – have a private balcony or terrace to encourage outdoor lounging. The Deluxe Beach Access and Deluxe Ocean View room categories in the Coral Wing allow couples to step out onto a pristine white beach and enjoy the endless seascape.   

Suited for families, the Hibiscus wing is located near children’s facilities and to the resort’s amenities and outlets. The wing’s Deluxe rooms and Junior Suites, both with beach access and ocean views, include the option to have interconnecting rooms.  

In the Frangipani wing, housed on an elite islet accessible via bridge, guests receive a special gift on arrival, thoughtful in-room check-in, evening cocktails and complimentary minibar, along with sole use of a swimming pool and breakfast at Republik Beach Club & Grill.  

Three beach villas, each spanning 423 square metres, are designed to instill a sense of peace and privacy. With 24-hour butler service, the villas feature a separate entrance, three bedrooms, an infinity pool and private beach access. Other amenities include champagne on arrival, an open bar, monogramed bathrobes, a dedicated electric car to move around the resort, as well as daily fruit and canapés. A villa stay also comprises a personal welcome at the airport and use of a lounge, and luxury limousine transfers.

In the seclusion of the resort, guests have exclusive access to Ilot Mangenie, a private island, to roam its 3.5-kilometres of white sand and lush vegetation or indulge in tailor-made “Dine by Design” dining experiences. For the active, an 18-hole par 72 championship golf course designed by Bernhard Langer, located on Ile aux Cerfs, is a few minutes from the luxury property's shores. On this island, there are complimentary water sports such as kayaking, stand-up paddle boarding, sailing, snorkeling and water skiing off the beautiful coastline, or for a fee, kite surfing, parasailing, big game fishing and scuba diving.    

Dining options begin with Republik Beach Club & Grill, a contemporary restaurant serving Mediterranean cuisine and barbecue grills. The bar – perfect for revellers with live music, themed nights and performances by local and international DJs – complements its bohemian beach lounge with fireplaces and daybeds. The restaurant’s Art & Food concept – a blend between the arts and gastronomy, is interpreted into ‘the art of the table’ and reflected in the décor and music with the aim to inspire creativity through artistic interactions with sculptors, painters or musicians.

Kushi, a Japanese restaurant, transports diners to a sensational setting of outstanding sea views on all sides. Named after the Japanese word for the comb used by Geishas to adorn their hair, an installation formed from kushi combs creates a striking centrepiece among guests dining on shabu shabu, Kobe and wagyu beef, and an Omakase sushi menu that highlights the fresh fish arrivals of the day. Each table even has a built-in grill or yakiniku to provide guests the option to grill their food.   

The first of its kind in Mauritius, Le Bazar is a dynamic food theatre featuring international dishes at its show kitchens and a marketplace atmosphere. In addition to offering the cuisine of a Szechuan master chef, Le Bazar has a noodle bar, rotisserie and western corner with meat and seafood grills. Al fresco dining is available on the terrace.   

The resort’s acclaimed Indian restaurant, Safran, remains true to its past glory and prepares authentic cuisine with Mauritian influences. The menu, conceived by internationally acclaimed Chef Ramesh Bundi, carries popular Indian dishes served family-style. A copper clad tandoori oven and incense at the entrance of the restaurant marks a sensory journey to India.  

Sega Bar, named after the Mauritian dance, offers a menu of uniquely smoked cocktails, exotic Tiki cocktails, as well as its signature eight-year old Shangri-La cask aged rum. As the resort’s centre of entertainment, the venue has a specially designed over-the-pool stage to host cultural shows, local talents, reggae and seggae music, as well as a live jazz and blues band nightly.   

CHI, The Spa at Shangri-La focuses on holistic and Ayurvedic wellness. Ingredients for treatments are organic, locally sourced or grown in the spa’s garden. Private consultations are available for guests to enjoy a bespoke wellness experience with nutritionists and Ayurvedic doctors.  The spa’s menu incorporates the renowned yogic practice of pranayama and meditation into every treatment, while integrating handcrafted oils and even rich local customs, such as the slow rhythmic beats of the national music, in other offerings.   

Children can enjoy the tropical paradise as much as their parents in the T-Club. Fun-filled activities and games are changed on a daily basis, and outdoor activities encourage interaction with the natural habitat around them. The T-Club entertains children aged between four and 11 years old, while the Active-T Club offers innovative social activities and themed evenings for 12 to 17 year olds.  

The opening marks the second property in the brand’s growing portfolio of luxury resorts in the Indian Ocean. More than a resort, Shangri-La’s Le Touessrok Resort & Spa will be a cultural hub, hosting artistic collaborations with local and international talents, and incubating new creations. Each area of the resort has been conceived to stimulate the senses and imagination. 

Mauritius: World renowned Arbitrators discuss dispute resolutions with the PM

Dispute resolutions in the construction industry were the focus of discussions yesterday during a courtesy call by a delegation of world renowned Arbitrators on the Prime Minister, Sir, Anerood Jugnauth, at the Treasury Building in Port Louis.

The delegation which comprised of Sir Vivian Ramsey, UK Supreme Court Judge, Mr Charles Brown, President of the Chartered Institute of Arbitrators, UK and Mr Peter Collie, are currently in Mauritius in the context of the 10th International Conference on Construction Law and Dispute Resolution to be held on 10 and 11 December in Mauritius.

In a statement, Sir Vivian Ramsey, UK Supreme Court Judge, spoke of the position of Mauritius which over the years has developed into one of the centres for international dispute resolutions in the region. In addition to arbitration, he underlined that the issue of dealing with complex cases of construction disputes at international level was raised whereby he mentioned a quicker way to deal with such cases in Mauritius.

It will be recalled that the Government of Mauritius has declared an objective of developing and promoting Mauritius as a leading venue for the settlement of international commercial disputes by arbitration. The two-day conference which will see the participation of world renowned Arbitrators will has as theme: Claims and Disputes in Construction Projects under the International Federation of Consulting Engineers contract.

The International Conference on Construction Law and Dispute Resolution has been designed to look at the management of claims and modern approaches to dispute resolution in construction projects. The conference also aims at promoting maximum interaction between the participants and the speakers.

The fall of Jersey: how a tax haven goes bust

Jersey bet its future on finance but since 2007 it has fallen on hard times and is heading for bankruptcy. Is the island’s perilous present Britain’s bleak future?

The Guardian

The Chaser’s Guide to Tax Havens

Want to pay the same tax rate as Apple, Google or the Prime Minister, but don’t have millions to spend on advisors?

Setting up in a tax haven is a completely legal way to avoid the hassle of paying the same share as the rest of the population. The Chaser’s Guide to Tax Havens will see you go from Overtaxed Chump to Freeloader virtually overnight, with our simple 1,413-step process.

Porlwi by Light : Des vues éblouissantes transmises par le drone d'AirSpy

Xiaomi Mauritius

We sell directly to customers to keep our prices competitive. With more than 18 million handsets sold in China in 2013 and products launched in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India and Indonesia, we are now in Mauritius and ready to go more around the globe.

FSC Mauritius issues Circular Letter on Off-site Supervision Procedures

The Financial Services Commission is hereby issuing a Circular Letter CL031215 with respect to Off-site Supervision Procedures.

The aim of this Circular Letter is to standardize the procedures and business practices to ensure a uniform approach and an efficient collaboration between the Financial Services Commission and Management Companies/Registered Agents, thereby reducing unnecessary processing delays.

Communiqué - Off-site Supervision Procedures >> Read More

Circular Letter - Off-site Supervision Procedures >> Read More

Mauritius: Finance Minister outlines new economic vision to the IMF delegation

The Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, outlined the new economic vision for the country during a working session held yesterday in Port Louis with a delegation of the International Monetary Fund (IMF) in the context of the 2015 Article IV Consultations.

During the working session led by the IMF Mission Director for Mauritius, Dr. Mauro Mecagni, Minister Lutchmeenaraidoo presented the country's new economic strategy as outlined in the 2015-2016 Budget. He underpinned the new strategy aimed at instilling a new impetus to the economic activity in order to achieve full employment by 2018 and eventually help the country emerge from the mid-income trap. The three pillars of the new strategy for growth are namely: the Blue Economy, the Maritime Hub and economic integration within the region and Africa.

The Minister of Finance also spoke on the various strategic initiatives taken to implement these three new pillars so as to boost the economy and enable the country to move to the next level of development.

The African strategy, he said, is on the right path with the support of the World Bank, the African Development Bank and other international development institutions. He explained the innovative approach adopted by the government to promote investment across the African continent with government-to-government agreements and Special Purpose Vehicles to attract capital.

With regard to the Maritime Hub, the Minister spoke of the partnership opportunities with world reference operators including DP World of Dubai, to transform the port into a regional maritime trade hub. He also dwelt on the need to maintain a stable financial system for which he solicited the IMF's expertise.

The issue of Government debt was also on the agenda whereby the Minister enumerated the measures taken to reduce public debt to 50% of GDP by 2018.

For his part, Dr. Mauro Mecagni, expressed satisfaction regarding the new economic strategy of the Mauritian economy and recalled the major challenges lurking ahead.

The IMF Article IV mission will be in Mauritius till December 16.

Mauritius - Government remains steadfast to relentlessly fight fraud, corruption and financial crime

Government has pledged to conduct business on the principles of discipline, transparency, accountability and exemplary governance. It took a firm commitment to act decisively to address the social and economic problems that have plagued our nation for nearly a decade.

In a speech in the National Assembly on December 02 at the second reading of the Constitution (Amendment) Bill, the Prime Minister recalled that Government will remain steadfast in its commitment and relentlessly fight fraud, corruption and financial crime adding that there is a clear mandate from the people to bring about meaningful change.

Given that good governance is a prerequisite for meaningful change, Sir Anerood Jugnauth told the National Assembly that no stone will be left unturned to eradicate malpractices and irregularities from all aspects of public life and restore our national values.

“The Constitution (Amendment) Bill No XXIX of 2015 is intrinsically linked to the Good Governance and Integrity Reporting Bill which seeks to promote a culture of integrity and good governance in the country”, he said.

The Prime Minister cautioned that corruption will not be overcome if preventive measures are not accompanied by effective deterrents. On that score the confiscation of the proceeds of crime constitutes an important additional deterrent that often has a greater impact than fines or prison terms. He pointed out that the threat of confiscation also entails preventive effects, as it makes the commission of the crime less attractive.

“We are not against the rich or the accumulation of wealth per se. Honest people have nothing to fear. Whatever they may have earned rightfully and lawfully will be theirs to enjoy. The aim of Government is to check accumulation of wealth through backdoor mechanisms. And there is nothing wrong with this”, reassured the Prime Minister.

Sir Anerood explained that the object is to amend section 8 of the Constitution so as to provide for the taking of possession of property:

• under the ownership of a person to an extent which is disproportionate to his emoluments and other income;
• the ownership, possession, custody or control of which cannot be satisfactorily accounted for by the person who owns, possesses, has custody or control of the property; or
• held by a person for another person to an extent which is disproportionate to the emoluments or other income of that other person, by way of confiscation.

He underlined that the concept of asset confiscation is not totally new in our jurisdiction. It already exists in our body of law. He recalled that the Asset Recovery Act already introduced in the Mauritian law the concept of a non-conviction based recovery of assets and that the amendment which is now being proposed constitutes an important additional arsenal in the hands of the State to track down and recover ill-gotten gains.

Sir Anerood concluded by stating that the existing legislation has not allowed for the forfeiture of ill-gotten assets of individuals nor has it curbed unexplained wealth in Mauritius and underlined that with this proposed amendment to the Constitution. The message that is being sent is that it will no longer be business as usual for individuals who have disproportionate wealth with regard to their declared income and other means.

Shakespeare Lives in Mauritius

The British High Commission and the British Council are pleased to announce ‘Shakespeare Lives’, a major global programme celebrating Shakespeare’s works and his influence on culture, education and society on the 400th anniversary of his death. An extensive programme of activities is planned to mark this global event.

Shakespeare is one of the UK’s greatest icons - 400 years after his death, his works continue to thrill audiences of all ages right across the world, and are a source of inspiration for film directors, writers, artists and more. He is one of the most enduring examples of cultural impact and relations. His works have not only inspired the broadest range of artistic endeavour and motivated political change but also given people from all walks of life a platform for self-expression through the genius of his language. ‘Shakespeare Lives’ will not only explore his global legacy but also continue to demonstrate how his stories, themes and language are relevant in the modern world and must remain central to the lives of future generations.

‘Shakespeare Lives’ is possible due to the unprecedented number of partnerships and collaborations between the British Council, the Foreign and Commonwealth Office, the GREAT Britiain Campaign and partners and organisations including the BBC, the BFI , the National Theatre, the Royal Shakespeare Company, the Shakespeare 400 Consortium, the Shakespeare Birthplace Trust and Shakespeare’s Globe. In Mauritius we are grateful for the support of HSBC, Immedia, the English Speaking Union, Star Cinemas and the Flying Dodo Brewing Company.

From a unique online collaboration to performaces on stage and film, exhibitions, public readings, conversations and debates and educational resources for classrooms and English language learners, people around the world in over 140 countries and of all ages will have the chance to actively participate and get involved throughout the year.

Working with a range of partners, the British High Commission and the British Council is inviting Mauritius to rediscover and celebrate the extent of his global impact through ‘Shakespeare Lives in Mauritius’. The programme will include:

Two performances of Hamlet by the UK’s Globe Threatre on 22 january 2016 at 11.30 and 20.00 at the MGI, Moka;

A film festival hosted by star cinemas in february/amrch 2016;

A photo competition running until march 31 2016 for children;

‘Play Your Part’, a global digital initiative inviting people to submit a creative piece illustrating their favourite shakespeare quote.

High Commissioner Jonathan Drew and British Council Director Tris Bartlett jointly said:

“it is with pleasure that we launch ‘Shakespeare Lives in Mauritius’. This is a great opportunity to showcase the work from one of the world’s greatest writers and to engage creatively with Mauritians to celebrate the Bard’s life and works. It is our sincere hope that ‘Shakespeare Lives in Mauritius’ will inspire many mauritians in their own creative activities and will enrich the cultural relationship between the UK and Mauritius.

Changes in International Regulatory Regimes on Caribbean Corporate, Financial Regulatory and Transparency Law

Bruce Zagaris provides an overview of the changing regulatory environment in the Caribbean.  He looks at the impact of anti-money laundering and other increased financial regulatory standards and observes that Caribbean governments and the private sector need to continue to try to improve their regulatory standards and work to persuade international bodies and national governments to make and implement anti-money laundering regulatory standards in a fair and balanced manner.

Global Witness - How exposing anonymous companies could cut down on crime

Companies are artificial entities created to allow real people to do business. But, unfortunately, there are some types of companies that aren’t engaged in any business at all. Instead, these anonymous companies exist mainly to disguise people doing things they’d rather not have the public know about. Global Witness explains how anonymous companies are used to cover up crime and corruption.

Mauritius Vacancies: Financial Services Promotion Agency (FSPA)

MANAGER - MARKET DEVELOPMENT & PROMOTION

MANAGER – PRODUCT DEVELOPMENT & RESEARCH

MANAGER – FINANCE & ADMINISTRATION

ASSISTANT MANAGERS

OFFICERS – BUSINESS DEVELOPMENT/ RESEARCH

PR & COMMUNICATION OFFICERS

DIGITAL MARKETING OFFICER

FINANCE & ADMINISTRATION OFFICERS

IT SYSTEMS OFFICER

IT SUPPORT ASSISTANTS

Mode of application: Interested candidates should demonstrate high level of pro-activeness and be ready to work extended hours as necessary. 

Interested candidates are requested to send their motivation letters along with their CV not later than Tuesday 15th of December 2015, to hr@fspa.mu 

The Financial Services Promotion Agency reserves the right not to make any appointment following this advertisement.

Moody's maintains Mauritius Baa1 government bond rating

Moody’s Investors Service has maintained the current Baa1 government bond rating for Mauritius with a stable outlook according to its report released on November 24.

According to Moody’s, the affirmation of the Baa1 rating is mostly related to Mauritius having an impressive record of resiliency, good economic, institutional and fiscal strength, and low susceptibility to event risk combined with a healthy economic outlook supported by appropriate fiscal and monetary policies. The Financial Sector regulation is also broadly in line with international standards.

Mauritius local currency and deposits ceilings remain at A1, and the foreign-currency ceilings for bank deposits and bonds remain at Baa1/P-2 and A2/P-2, respectively.

It will be recalled that the rating was changed in June 2012 when Moody's upgraded Mauritius rating to Baa1 from Baa2 owing to the country’s economic performance. Since then, the economic outlook has remained stable.

The key drivers of Moody’s assessment of the country’s rating standard pertained mainly to the Mauritian economy which over the past years has been steady and well-diversified, with a broad-based growth averaging 3.6% in real terms. While the tourism and financial services industries being the main pillars of the economic base, contributing directly to approximately 10% of GDP each.

In its assessment report, Moody states that the Mauritian economy faces on-going challenges, including fostering investment, improving cost-competitiveness and maintaining the attractiveness and stability of its financial sector. However, Moody's expects that continued pro-active economic policies, a key element of the Mauritian economy's success, will gradually address those challenges.

It further points out that Economic governance is strong and business-friendly in Mauritius, as exhibited by the country's strong position in the World Bank's Ease of Doing Business ranking (32nd out of 189 countries, being the strongest country in Sub-Saharan Africa). As a result, Moody's expects Mauritius to grow continuously at robust rates.

Another determining factor is the assessment of Mauritius fiscal strength with the government debt remaining broadly stable and manageable over the next two to three years. Government’s plan is to reduce fiscal deficits substantially in order to comply with its debt target. The rating agency further observes that despite its high level, government debt remains affordable with interest charges relative to government revenue reaching 13% in 2014. In addition, it notes that the debt is primarily domestic, with the government benefiting from a relatively large domestic funding pool. A substantial part of the government's debt is held by the National Pension Fund.

Recommendations of the Mauritius Bar Association

The Bar Council, on behalf of the Bar, is pleased to have this opportunity to comment on the provisions of the Constitution (Amendment) Bill 2015 and the Good Governance and Integrity Reporting Bill 2015 (“the Bill”).

Mauritius and Morocco sign Double Taxation Avoidance Agreement

Mauritius and Morocco signed on November 25 in Port Louis a Double Taxation Avoidance Agreement (DTAA) that will provide for greater tax certainty for businessmen of the two countries.

The signatories were the Minister of Finance and Economic Development, Mr Vishnu Lutchmeenaraidoo, and the Ambassador of the Kingdom of Morocco to Mauritius, Mr. Mohammed Amar.

The DTAA will give a further spur to the positive evolution of economic ties between the two countries while making clear the taxing rights of Mauritius and Morocco on all forms of income arising from cross-border economic activities between the two countries. By virtue of the agreement double taxation, which is an impediment to cross-border activities, will be eliminated.

In his address Finance Minister Lutchmeenaraidoo highlighted the importance of the DTAA with Morocco which he said will open new avenues of cooperation between the two countries. He also outlined the strategy of closer economic ties with Africa and emphasised the necessity of government-to-government agreements to develop business on the continent.

For his part Ambassador Mohammed Amar announced the opening of an Embassy of the Kingdom of Morocco in Mauritius in the near future and the possibility of the exemption of entry visas for Mauritian citizens travelling to Morocco.

According to him, the DTAA will further foster the exchange of investments between the two countries. He also expressed interest for more Mauritian hotel operators to develop projects in Morocco.