KPMG and Google Enter an Alliance to Help Organizations Transform Digital Experiences

KPMG International today announced an alliance with Google to help organizations transform their business and operating models with secure cloud computing, machine learning (ML), enterprise mobility and advanced analytics technologies. 

As part of the collaboration, KPMG is creating a portfolio of industry solutions built on Google Cloud Platform (GCP). KPMG member firms around the globe are currently engaging with clients on solutions for financial services, insurance, healthcare, manufacturing, and retail, among other industries. These solutions, including customer service solutions, contract management, cyber security, regulatory compliance and business and process performance, will benefit from GCP's trusted security, advanced data analytics and ML.

Two KPMG solutions available now are KPMG Intelligent Interactions for creating a differentiated customer experience, and the General Data Protection Regulation (GDPR) Assessment and Compliance solutions for managing customer data and privacy. 

"Organizations are seeing advanced technologies and natural language experiences as a key to transforming their businesses," says Miriam Hernandez-Kakol, KPMG's Global Leader for Customer & Operations and Executive Sponsor for the Google Alliance. "KPMG is creating data-driven solutions that harness Google Cloud technology, including machine learning, to help our member firm clients advance business strategies and deliver unrivaled digital experiences."

"Our alliance with KPMG helps customers across industries benefit from the advantages of Google Cloud, including our advanced security, data analytics and machine learning capabilities, to solve real business challenges," says Tariq Shaukat, President, Partners and Industry Platforms, Google Cloud. "We're working alongside KPMG to develop new solutions that help enable customers to actively participate in the ideation and creation of their own solutions."

KPMG's business acumen, industry knowledge, and business process consulting help member firm clients understand how to integrate ML technology. Combining this experience with Google Cloud's pre-trained ML models, made accessible via application programming interfaces (APIs), streamlines new product development, where clients do not need to build and train their own models. KPMG also provides ML models that can be quickly customized using Google Cloud Machine Learning Engine.

The alliance allows member firm clients to take advantage of GCP-based solutions as part of the KPMG Ignite portfolio of AI capabilities, KPMG's Center of Excellence for Data & Analytics and Intelligent Automation, and KPMG's 65 Google Cloud certified consultants. The center has established a KPMG GCP 'lab' to foster experimentation and collaboration with Google Cloud on client use cases.   

KPMG Intelligent Interactions

One of the first available solution offerings under the alliance is KPMG's Intelligent Interactions, part of KPMG's Connected Enterprise portfolio. The solution automates and enhances customer interactions by using ML technology, including Google Cloud Speech-to-Text and Translate APIs, to determine sentiment and intent. 

KPMG Intelligent Interactions links with other intelligent automation (IA) technologies, such as robotic process automation (RPA), to help clients automate customer responses and redesign business processes. For example, voice automation—with capabilities to understand, translate, and identify sentiment and intent—can augment interactions with customers. Virtual assistants — built with Google Cloud ML language capabilities, including DialogFlow, Speech APIs, and Translate APIs—can anticipate customer needs based on predefined triggers.

GDPR Assessment and Compliance solutions

To help member firm clients build and execute a new vision for customer data management beyond compliance, KPMG teams offer purpose-built solutions that assist clients with the challenges of GDPR compliance while helping lay the foundation for a strong data management and privacy strategy.   

The solutions combine KPMG's domain, regulation, customer analytics, enterprise data strategy and compliance knowledge with Google's ML-based cloud technology, data management and advanced analytics products to deliver a sustainable platform with single customer views, legal and compliance support, end-to-end modelling platforms, cloud data warehousing and a secure data infrastructure. The solutions help reduce the costs associated with ongoing compliance, streamline compliance efforts, enable data-driven customer service improvements and support analytics-powered processing.

Le Monde: L’île Maurice à la frontière entre optimisation et évasion fiscale

Le pays attire de nombreuses sociétés offshore grâce aux « facilités » qu’il leur octroie, avec plus ou moins de transparence.

Le Monde 

Celebrating 200 Years of Billecart-Salmon with Four Seasons Resort Mauritius at Anahita and Renowned Guest Chef Hervé Rodriguez

Four Seasons Resort Mauritius at Anahita is raising a glass to Billecart-Salmon this June in a week of events to celebrate the Champagne brand’s 200th anniversary. In partnership with The Gourmet Emporium, Academie Nationale de Cuisine and Michelin Star guest Chef Hervé Rodriguez, diners at the Resort’s Beau Champ Restaurant will have the chance to indulge their taste buds with a selection of culinary highlights all paired with the famous Champagne.

“Billecart-Salmon 200 years is a distinction of class,” says Emmanuelle Coquet Madoo, Managing Director of The Gourmet Emporium. “Blended from pinot noir, chardonnay and pinot meunier, all from different years, it has a delicate freshness that makes it so well suited to every occasion. We are glad to have the opportunity to partner with Four Seasons for such a special anniversary celebration.”

Joining Executive Chef Nicolas Vienne to lead the culinary teams for the week of events, Four Seasons is set to welcome Chef Hervé Rodriguez. Originally from Dijon and now based in Paris, Chef Rodriguez is of Spanish origin and through his curiosity to discover this heritage, he has learned to explore the cuisines of not only Spain, but around the world, paying close attention to the visuals of how a dish is created. Bold and passionate in his approach, Chef Rodriguez has worked at no less than three Michelin Starred restaurants, including his own MaSa Restaurant in Paris.

The celebratory events in honour of Billecart-Salmon’s 200th anniversary will include:

• Chef’s Table Demonstration at Beau Champ Restaurant, 4 June 2018 – Join Executive Chef Nicolas Vienne and Hervé Rodriguez from 12:00 noon to 3:00 pm to learn the secrets of the local and imported products in this culinary demonstration in partnership with Academie Nationale de Cuisine.
• "Four Hands" Dinner at Beau Champ Restaurant, 5 June 2018 – The four hands of Executive Chef Nicolas Vienne and Chef Hervé Rodriguez will work together to deliver a five course set menu that is the perfect pairing to Billecart-Salmon. 90 seats available.
• The Billecart 200 Year Dinner at Beau Champ Restaurant, 8 June 2018 – A gala dinner that comprises a five course set menu by Hervé Rodriguez with aperitif and canapes. 90 seats available.

Inside Our Quick Service Restaurants 2018

Inside Our Quick Service Restaurants 2018 assessed the largest Australian quick service restaurants on their policies and commitments related to obesity prevention and nutrition.

Al Jazeera - Hacked: The Bangladesh Bank Heist

It was a daring raid. Tens of millions of dollars stolen from Bangladesh's central bank via the Federal Reserve Bank of New York, transferred to accounts in the Philippines and then laundered through the Philippine casino system.

The money, and the thieves, then vanished. And it was all done online. In this comprehensive investigation spanning several countries, 101 East examines one of the biggest bank robberies in modern times, to find out how cyber-hackers infiltrated the global banking system, and got away with it.

Mauritius: Data Protection Act 2017 V/S GDPR.

The European General Data Protection Regulation ("GDPR ") is effective as from 3.00 am (Mauritian time) today, 25 May 2018. The GDPR has extra-territorial applicability; it will apply to Mauritian controllers and processors who are processing personal data of data subjects in the European Union ("EU ").

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Does GDPR Apply to Your Business?

The General Data Protection Regulation (GDPR) becomes enforceable across the EU from 25 May 2018. This flowchart is designed to assist international businesses to determine whether the requirements of the GDPR will apply to them. It focusses on those business generally based outside the EU/EEA but with some business activity within the EU/EEA.

UK: Countering Russian corruption is a national security priority, say Committee

The UK must get serious about confronting the full spectrum of President Putin’s offensive measures.

The robust rhetoric from the Prime Minister following the attempted murder of Sergei Skripal and his daughter has been undermined by the ‘business as usual’ sign hanging on the UK’s front door, says a new Report from the Foreign Affairs Committee.

Published today, Moscow’s Gold: Russian Corruption in the UK, says the use of London as a base for the corrupt assets of Kremlin-connected individuals is now linked to a wider Russia strategy with implications for the UK’s national security.

Tackling this should be a major priority for the UK’s foreign policy, says the Committee. There is a direct relationship between this wealth and the ability of President Putin to execute his aggressive foreign policy and domestic agenda.

Chair's comments

Chair of the Committee, Tom Tugendhat MP, said:

"The scale of damage that this ‘dirty money’ can do to UK foreign policy interests dwarfs the benefit of Russian transaction in the City. There is no excuse for the UK to turn a blind eye as President Putin’s kleptocrats and human rights abusers use money laundered through London to corrupt our friends, weaken our alliances, and erode faith in our institutions.

"As the 2018 National Security Capability Review made clear, money laundering is a foreign policy issue as it affects our national security. Today, we make recommendations to Government with the aim of hitting Kremlin-linked individuals in their pockets and levering pressure on the regime.

"We can no longer allow ‘business as usual’. The UK must be clear that the corruption stemming from the Kremlin is no longer welcome in our markets and we will act. We must be united in our efforts to match rhetoric with action – in the City, through Government policy and among allies in the US, G7 and EU. We call on the Foreign and Commonwealth Office to set out a coherent strategy on Russia that clearly links together the diplomatic, military and financial tools that the UK can use to counter Russian state aggression."

Committee recommendations

In order to exert maximum financial and economic leverage, the Committee recommended the Government should:

• Close the gaps in the sanctions regime that have seen companies use London markets but be sanctioned in other jurisdictions;
• Close the loopholes that allow debt issuance be used to go around sanctions;
• Extend sanctions to target more individuals who are closely linked to President Putin’s regime, including by using the Magnitsky powers set out in the Sanctions and Anti-Money Laundering Bill; and
• Crack down harder on illegal money-laundering by speeding up plans to promote transparency of corporate ownerships.

Carving up a Business Empire Through Tax Havens: The Ambani Way

The network of offshore companies and Swiss bank accounts that were used to divide Dhirubhai Ambani’s foreign assets after his death is being probed by the income tax authorities; a company crucial to the network was MoTech Software.

FSDEA Legal Proceedings Accelerating Value Destruction of the Angolan People’s Investment Portfolio

Quantum Global Group today provided an update on the destruction in value to the investment portfolio managed on behalf of the Fundo Soberano de Angola (FSDEA).  The group also reiterated its desire to negotiate a settlement to the contract dispute in a professional manner, something the administration of the FSDEA does not seem to want.

The money invested in more than a dozen businesses across Angola and Sub-Saharan Africa have created hundreds of jobs and generated wealth for communities across the continent. This value is being progressively destroyed due to the FSDEA’s aggessive legal strategy and continued refusal to negotiate in good faith and conclude a settlement to what is essentially a contract dispute.

By continuing to resort to misconceived legal proceedings in Mauritius and the UK, the FSDEA is destroying value in their own investments. The portfolio companies cannot pay salaries, maintain operations, fulfil contract obligations to fund construction of new buildings or pay taxes or legal bills. Specific destructive outcomes include the following:

• Illegal logging is expected to start immediately at Estrela da Floresta forest concessions without a management team in place
• New plantations are already burning in the dry season due to a lack of local Angolan employee management
• Without a management team in place, Fazangola farms cannot guarantee the harvest can be done at this critical point in the season
• Angolan Fazangola workers will not be paid, depriving them of their livelihood and ability to support their families
• The main contractor in the refurbishment of the Lusaka Intercontinental Hotel has stopped the redevelopment project exposing the Hotel Fund to significant legal liabilities
• Several small Angolan businesses providing services to portfolio companies have not been paid
• Ultimately, it is the Angolan people who are being hurt the most as they are the owners of the investment portfolio and the ones who were feeling the benefits of these investments through local employment, which is being impacted by the legal approach of the FSDEA.

Quantum Global will continue to defend its reputation against the unwarranted assaults through legal proceedings in Mauritius and the UK. But at the same time, the group looks forward to resolving this contractual dispute in a professional manner.

Dawood Rawat v Mauritius: Dual-national claim dismissed based on treaty context interpretation

On 6 April 2018, a Tribunal constituted under the UNCITRAL Arbitration Rules rendered an Award on Jurisdiction in the case Dawood Rawat v. The Republic of Mauritius (PCA Case 2016-20).  Following a thorough analysis of the interpretation of the 1973 Investment Protection Treaty between the Republic of France and Mauritius (the “France-Mauritius BIT” or the “Treaty”), the Tribunal denied protection of the relevant investment protection treaty to a dual national – a French-Mauritian businessman – despite the treaty was silent on its application to dual nationals.  This approach was contrary to prior investment treaty decisions, such as Serafín García Armas and other v Venezuela, in which tribunals have rejected jurisdictional objections brought by respondent states where relevant the bilateral investment treaty (“BIT”) was silent on the exclusion of dual nationals.

Thomson Reuters Harnesses Artificial Intelligence to Filter Media Content in Fight Against Financial Crime

Thomson Reuters has enhanced its World-Check One platform with the launch of Media Check, a unique media screening and processing feature powered by artificial intelligence (AI) that helps address the regulatory and reputational consequences of overlooking key data in the fight against financial crime. Media Check’s machine learning capability increases efficiency by filtering unstructured content from over 11,000 global print and web sources, giving financial institutions more accurate and relevant data faster.  

Thomson Reuters is committed to innovative solutions to assist its customers in the global fight against financial crime, and alleviate the considerable challenges associated with risk screening.

“Institutions need to digest an increasing amount of relevant information to help prevent financial crime. The next-generation AI technology in Media Check lets them navigate this crowded environment to help comply with regulatory and other requirements and avoid the reputational risk of missing critical information that could result in criminal activity,” said Phil Cotter, Managing Director, Risk Segment, Thomson Reuters. “Adding a machine learning dimension to our World-Check One platform gives clients an exceptional means to help pinpoint the most relevant media information, thereby maximizing the efficiency of their due-diligence processes."

World-Check One’s Media Check has many benefits that include enhanced compliance workflow, and the assurance that only relevant content is presented to compliance professionals.  This is achieved through intelligent searching, a unique AML taxonomy informed by 15 years of industry leading World-Check experience, and machine learning algorithms honed by the World-Check research team.  The result is a reduction in false positives and improved content navigation leading to better and more informed decision-making. Media Check also provides continuous, up-to-date media and data monitoring.

Nespresso On Ice Limited Edition Italian Summer Duo

Discover the two Limited Edition coffees developed by Nespresso for the preparation of Italian iced coffee recipes: Ispirazione Salentina and Ispirazione Shakerato.

Ispirazione Salentina

A tribute to the Ispirazione Salentina, an iced coffee recipe from the south of Italy, this blend is a bold, balanced coffee with a smooth and round texture, nutty aromas and typical Robusta notes. When prepared with cane sugar syrup, ice and almond milk, it gives a refreshing drink with a sweet taste and a creamy texture.

Origin

Arabica and Robusta coffees from Uganda, Ethiopia, amongst other origins.

Roasting

The Arabicas and the Robusta are roasted separately. The Arabicas are long roasted at a medium to dark color. The Robusta is dark roasted for a shorter time in order to preserve all its aromas. All the coffees composing the blend are coarsely ground in order to allow a good mix and achieve an optimal homogeneity in the final iced coffee recipe.

Aromatic Profile

A bold, balanced coffee with a smooth and round texture, nutty aromas and typical Robusta notes

Ispirazione Shakerato

A tribute to the Ispirazione Shakerato, a famous iced coffee recipe from Italy, this blend is a straight, intense coffee with cocoa and spicy aromas together with a roasted finish. When prepared in a shaker with ice and sugar, it gives a powerful and smooth, full-bodied iced coffee topped with an indulgent foam.

Origin

Arabica coffee from Guatemala, Ethiopia, amongst other origins.

Roasting

The origins are roasted in different splits, at the same temperature, yet during different durations to deliver rich aromas, a specific structure, more texture and body. All the coffees composing the blend are coarsely ground in order to allow an optimal homogeneity in the final iced coffee recipe.

Aromatic Profile

A straight, intense coffee with cocoa and spicy aromas together with a roasted finish.

Nespresso - Explorations 2018: Galapagos Santa Cruz

Meet Galapagos Santa Cruz, our experts' Pick of the Year. The next edition of EXPLORATIONS took us to a low-lying volcanic island in the exotic Galapagos where an unusual microclimate and an extraordinary ecosystem combine to create a sweet cereal espresso as surprising as the land itself. What else would you expect from somewhere unlike anywhere else on earth?

An Unlikely Home For Coffee

It’s often in the most unexpected places that you find the most wondrous things. Coffee growing and high, ancient lands go hand in hand, so when we got the opportunity to sample a coffee thriving on Santa Cruz, a relatively young island in the low-lying Galapagos, we put the rule book to one side and packed our bags.

Rich, Fertile Soil Born From Volcanoes

Formed from erupting volcanic lava, the whole island is brimming with rich nutrients – from an extraordinary soil unlike most coffee growing places on earth. With over 80% of the Galapagos being a nature reserve, only very few places are allowed to carefully cultivate the land, making this rare coffee even more special, don’t you think?

Unseen Forces Collide

We all know that opposites attract and in the Galapagos, we see this first hand with two opposing ocean currents meeting to create something truly spectacular.

First, the hot climate is cooled by the Humboldt Current, flowing north along the coast of South America and via Peru. Then, the Cromwell Current flowing down from the north arrives carrying oxygen and nutrient-rich waters with it.

Where The Unusual Is The Norm

These two forces fuse and a special microclimate and prosperous land explodes. In the creation of this Arabica coffee, every one of mother nature’s wondrous elements joins together and allows coffee beans to grow in the most surprising of places.

Breaking The Rules Of Coffee

It’s widely accepted within the coffee world that the higher the altitude, the better the coffee quality. But Santa Cruz rolls its eyes at this. Imagine a coffee that tastes and roasts just like its high-altitude cousins from the Americas.

However, instead of the plants growing upwards from the lofty heights of 4,000 feet, they’re flourishing surprisingly low down at about 650 feet.

A Unique Microclimate Lets Coffee Plants Flourish At Low Altitude

Take the island’s unique cocktail of sunlight, rain and the mix of sea temperatures and you have beans that ripen slower developing more sugars and the potential for in-cup complexity. Paired with the careful picking and wet-processing and you’ve got a rounded, full bodied espresso. A split, medium roast brings sweet cereal and biscuit notes that’s surprising for the place where it grows. Meet Galapagos Santa Cruz, the coffee from an island that flies in the face of the usual.

Growing In Perfect Harmony

The only land on earth shared by marine iguanas, giant tortoises, and penguins.

This biodiversity is the Galapagos through and through; no wonder Darwin was so enchanted by the place. This delicate balance of nature’s harmony runs all the way down to the way coffee farmers respectfully harvest their coffee.

The Island's A Symphony And Everything On It Plays A Part

Farmers build rainwater catchment ponds to process their beans which they invite wild tortoises to share to escape the heat of the beating sun. Coffee plants attract and feed birds and butterflies which, in turn, they pollinate and prune. Astounded by its beauty, we bring you Galapagos Santa Cruz – a coffee that doesn’t just survive here, it thrives.

A Story In Taste

Inspired by this unusual land, our experts crafted a roasting profile to echo the careful attention the island’s farmers put into growing their crop.

A Medium Split Roast To Enhance The Fruity Aromas

When it came to the roast, the first split was for a medium time to keep all those fruit notes locked in. The second split was roasted a little darker with medium roasting time to reinforce the body and overall structure. And the result? A full-bodied espresso with roasted, sweet cereal and biscuit notes. Round, with some cacao-like bitterness, we bring you Galapagos Santa Cruz.

McDonald’s new menu: less transparency, more tax havens

Today we release a new report on McDonald’s tax practices, focusing on the company’s use of tax avoidance mechanisms in Europe and low-tax and secrecy jurisdictions around the world. It shows how in the midst of a tax probe and the day after the Brexit, McDonald’s changed its tax structure.

In February 2015, our coalition of European and American trade unions unveiled a report about McDonald’s deliberate avoidance of over €1 billion in corporate taxes in Europe (from 2009 to 2013).

Three years later, this update shows that McDonald’s has significantly changed its corporate structure after the European Commission started investigating its tax dealings with Luxembourg and is less transparent on tax and more reliant on well-known tax-havens.

The Unhappy Meal report outlined in detail the tax avoidance strategy adopted by McDonald’s and its tax impact both throughout Europe and in major markets like France, Italy, Spain and the UK.

The new report 'Unhappier Meal' is co-authored by EPSU, EFFAT, and SEIU– the coalition of European and American trade unions, representing 15 million workers in different sectors of the economy across almost 40 countries.

Since the European Commission launched  its state aid probe,  McDonald's has moved from Luxembourg  to Delaware in the USA using a myriad of intermediate companies in Singapore, Hong Kong and the UK while making use of companies in the Cayman Islands,  Bermuda and Guernsey.

The new corporate structure is so untransparent that the new tax base is currently unknown. It does not allow for public scrutiny of the companies’ accounts, including taxes owed and paid.

Jan Willem Goudriaan, EPSU General Secretary says that “McDonald's recent move shows why we need strong global public country-by-country reporting. The European Council must take up its responsibility and protect our communities from corporate tax dodging. We call on the Commission to continue and deepen its investigation of the company and on national tax authorities to conduct joint audits.” He adds “The European Union cannot let companies like McDonald’s act with total impunity; the EU’s credibility is at stake.”

Harald Wiedenhofer, EFFAT General Secretary, states: “This report adds insult to injury, after the successful McStrike actions in the UK, demanding a pay rise to £10 per hour, an end to zero-hour contracts and trade union rights and recognition, and several investigations at national and European level concerning workers’ rights. McDonald’s has to pay its fair share of taxes, and needs to guarantee decent working conditions, fair wages and proper information and consultation rights to all its workers, otherwise the credibility of Social Europe is jeopardised.”

SEIU Executive Vice President Rocio Sáenz said: “It’s clear that McDonald’s will do whatever it takes to hide its abusive tax practices from public scrutiny. McDonald’s tax avoidance is just one example of how the company inflates its profits at the expense of everyone else, including workers, consumers and taxpayers. We urge the European Commission to vigilantly investigate McDonald’s continued tax avoidance and hold the company accountable for the damage done by its misconduct.”

Quantum Global Seeks Judicial Review into Mauritius Authorities Actions

Quantum Global Group today announced it has applied for a judicial review into what it called the unsubstantiated and illegal decisions of the Mauritius authorities to suspend its business licenses.

The Mauritius Court issued a series of restriction orders against Quantum Global last month on the basis of an affidavit by the Financial Intelligence Unit (FIU) that is still being withheld from the group despite repeated attempts over the past month to receive it.

The FIU obtained the restriction orders on the basis of statements it is unable to substantiate, Quantum Global states in the application for a judicial review. Moreover, the decision of the Financial Services Commission (FSC) to suspend its licenses was illegal, in breach of basic human rights and natural justice, and in breach of the Constitution of Mauritius, the group argues.

In a legal opinion, Lord MacDonald of River Glaven Kt QC, the former Director of Public Prosecutions of England and Wales, said: “The failure of the Mauritian authorities to provide even a gist of their case for the restriction orders is, in our view, a clear and significant breach of due process and fair trial rights.”

The FIU and FSC have allowed themselves to be drawn into a contractual dispute between Quantum Global and its client, the Angolan sovereign wealth fund known as Fundo Soberano de Angola (FSDEA), Quantum Global states.

Quantum Global manages $3 billion in seven private equity investment funds based in Mauritius under limited partnership agreements with the FSDEA. Following a change in administration, the FSDEA in early 2018 tried to terminate the limited partnerships, in breach of the agreements which guarantee a long-term commitment for investments in agriculture, infrastructure, hotels, healthcare, mining and timber.

When its first attempt failed, it appears the Angolan government persuaded the Mauritius authorities to start the court proceedings against Quantum Global. The FSDEA has also started legal proceedings against Quantum Global in the UK High Court, which granted a worldwide freezing order against the group. Furthermore, the FSC last month opened an investigation into Quantum Global, which the group believes to be a “fishing expedition” to try to justify its regulatory actions after the fact.

Lord MacDonald said: “In so far as a serious sanction has already been applied, that raises real concerns that the outcome of the investigation has been pre-judged, and that the sanction has been imposed unfairly.”

Arbitration proceedings are afoot in relation to the dispute with the FSDEA subsidiaries in Mauritius.

By wading into a contractual dispute, the Mauritius authorities have jeopardized the reputation of Mauritius as a financial center, Quantum Global says in the application, noting that arbitrary action and forced expropriations invariably undermine confidence in a jurisdiction as a whole. The group also reserves the right to seek redress for the damage and losses caused by the actions of the FSC and FIU.

Quantum Global asks the court to order the reversal of the FSC decisions and seeks a declaration that these decisions are illegal.

It should be noted that while the affidavit underlying the restriction orders has not been disclosed, several false and damaging allegations have been supplied to and published by the Mauritius media. Quantum Global believes that the leak of defamatory and unsubstantiated allegations is also wrong and against the principle of natural justice.

Quantum Global has strongly denied the false allegations reported by numerous media outlets in Mauritius and reiterated that all monies of the FSDEA are in place and accounted for. Quantum Global Group conducts its activities in accordance with approved investment policies and the applicable laws in Mauritius and worldwide. The seven investment funds based in Mauritius comply with strict IFRS reporting standards.

Quantum Global had also applied to the Mauritius courts to release funds from its frozen bank accounts for salaries and other essential operational expenses, which is a routine procedure allowed in such cases. However, the FIU has objected to the application. This decision is causing significant further financial damage to Quantum Global and the limited partnerships it manages. It also harms employees who are waiting to be paid.

Quantum Global’s Swiss shareholders have also informed the Mauritius government that they intend to apply for international arbitration under a bilateral investment treaty between Switzerland and Mauritius if the dispute is not resolved within six months.

Quantum Global will keep fighting what can only been seen as arbitrary FIU and FSC actions at this stage. More than a month after they have had their bank accounts frozen, the Mauritian authorities still refuse to account for their actions.

ABAX: Lessons from the AB Mauritius and AB Holdings tax rulings

The rulings The AAR delivered its decision on the taxability of capital gains in India arising from the sale of shares of the subsidiaries of AB Mauritius and AB Holdings, AB India and AB International Private Limited respectively, to a group company, AB Singapore Pte. The Companies applied for separate rulings, which were delivered on 8 November 2017.

ABAX

Quantum Global Announces Angolan Money Accounted For In Bank Accounts and Investments

FSDEA Legal Proceedings Destroying Value for the Angolan People

Quantum Global Group today issued a clarification for the people of Angola that all the funds of the Fundo Soberano de Angola (FSDEA) managed by Quantum Global are intact and properly accounted for.

The investment company detailed all the FSDEA funds under its management, past and present, to show that all the money was either deposited in bank accounts or invested in businesses across Angola and Sub-Saharan Africa, creating hundreds of jobs and generating wealth for communities across the continent.

Quantum Global expressed its dismay that the FSDEA has resorted to legal proceedings against the group when it has received regular updates on the fund operations and value, which has grown under Quantum’s management. Rather than launching misconceived legal proceedings, Quantum Global believes that the FSDEA should seek a negotiated settlement or arbitration in accordance with their contractual agreement.

The Quantum Global mandates

Quantum Global has historically managed two types of investments for FSDEA: the first is a liquid money mandate known as the multi-asset class mandate that invests principally in listed stocks and bonds; the second is a private equity mandate that invests in private companies for long-term growth.

1. The liquid mandate Up until April 2018, Quantum Global Investment Management Ltd. (“QGIM”), Switzerland, managed a multi-asset class mandate on behalf of FSDEA, and the value of this money increased above key benchmarks under its management. This mandate was terminated by the FSDEA in February 2018 and these funds are already back under FSDEA management.
2. The private equity mandate In addition, the FSDEA committed $3 billion to seven private equity funds based in Mauritius, where QG Investments Africa Management Ltd. is the investment manager. This money is deposited as cash and cash equivalents in the bank accounts of each fund, as an “advance cash contribution”. The remainder of the initial capital has been invested in the 20 companies that are listed on Quantum Global’s website: http://quantumglobalgroup.com/businesses/private-equity/portfolio-companies/. The value of these investments has increased according to the latest preliminary unaudited figures.

It should be noted that all investments and payments made have been audited according to international IFRS accounting standards and comply with the Fund’s investment policy. Contrary to media reports, the investment manager has provided the FSDEA with quarterly investment reports and as well half-year statements and full-year audited statements. The financial statements of 2017 are currently being audited by a respected independent auditing firm. In making these investments, Quantum Global Group as an investment manager has always acted in the interests of its investors.

Creating jobs and economic prosperity through portfolio company investments

Looking now at the portfolio companies that have benefited from the FSDEA’s private equity investments, they are all providing jobs and prosperity to communities across Angola and Africa, while delivering long-term sustainable returns to the FSDEA.

By investing in Porto de Caio through the infrastructure fund and Estrela da Floresta through the timber fund, for example, Quantum Global and the FSDEA are creating two powerful industrial clusters that are creating jobs today for Angolans, with the promise of more jobs and wealth for these communities in the future.

In Porto de Caio alone, where the FSDEA’s initial investment of $180 million is now valued at $385 million, will create 30,000 direct and indirect jobs when the port is fully operational in a couple of years’ time. The government revenue from the increased economic activity is expected to generate $300 million in tax revenue for Angola every year, according to research projections.

In the timber sector, Estrela da Floresta will create over 10,000 jobs and inject $1.1 billion into the local economy when all 18 concessions are operational.

For the agriculture sector, seven industrial farms are operated under the Fazangola brand and are working to reduce food imports and create a large-scale food industry for Angola.

The value destruction caused by legal proceedings

By continuing to resort to legal proceedings in Mauritius and the UK, the FSDEA is destroying value in their own investments. The portfolio companies cannot pay salaries or key suppliers, fulfil contract obligations to fund construction of new buildings or pay taxes or legal bills. All of these negative consequences resulting from the legal approach adopted by the FSDEA will result in financial damage to the FSDEA’s portfolio and to the Angolan people. This legal approach goes against the duty of the new FSDEA administration to protect the value of the existing investments.

Quantum Global will continue to defend its reputation against the unwarranted assaults through legal proceedings in Mauritius and the UK. But at the same time, the group looks forward to resolving this contractual dispute in a professional manner.