Friday, September 6, 2019

Mugabe - From Liberator To Oppressor

Robert Mugabe photographed in November 2017, shortly before he was ousted in a military coup. Robert Mugabe, a hero of Africa’s independence struggle whose long rule in Zimbabwe descended into tyranny, corruption and incompetence, has died at the age of 95. 
In a statement early on Friday, Mnangagwa called Mugabe “an icon of liberation, a pan-Africanist who dedicated his life to the emancipation and empowerment of his people. His contribution to the history of our nation and continent will never be forgotten. May his soul rest in eternal peace.”
Monica Mutsvangwa, the minister of information, confirmed the death, saying: “Yes it is really saddening. Some of us were like his children to him. We can never write our history without mentioning him.”
The passing of the former president, who ruled Zimbabwe for close to four decades before being ousted in a military takeover in November 2017, marks the definitive end of an era in the history of the former British colony.
Mugabe is believed to have died in Singapore, where he made frequent visits to receive medical care in recent months as his health deteriorated. As far back as November 2018, Mnangagwa, who took over from him as president, told members of the ruling Zanu-PF party that Mugabe could no longer walk.
Though once widely celebrated for his role in fighting the white supremacist regime in his homeland, Mugabe had long become a deeply divisive figure in his own country and across the continent.
His final years in power were characterised by financial collapse, surges of violent intimidation and a vicious internal power struggle pitting his wife Grace, 41 years younger, against Mnangagwa, his former righthand man.
The rivalry was resolved when Mnangagwa, a Zanu-PF stalwart, took power when Mugabe reluctantly resigned after a military takeover. The news of his decision prompted widespread rejoicing.
In the decades since Zimbabwe gained independence from Britain in 1980, power had concentrated in Mugabe’s hands. Before Mnangagwa took over, an entire generation of Zimbabweans knew no other leader.
After his fall, Mugabe was granted the status of a respected father of the nation and a generous pension by the new government. The move angered his many opponents and upset many of the victims of his regime.
But Mugabe’s own frustration and sense of humiliation over his ousting were clear, however, and voiced with typical rhetorical force a an extraordinary press conference in the grounds of his residence in Harare, the capital, days before elections in July 2018.
Mugabe, flanked by his wife, suggested he would vote for the opposition Movement for Democratic Change, a party he had brutally suppressed before co-opting it in 2008 to form a supposed unity government that he still dominated.
Until the end he retained friends on the African continent but increasingly became an international pariah. Mugabe was stripped of an honorary knighthood by the British government in 2008.
Educated at Catholic missionary schools, Mugabe became a teacher in Ghana then returned to Rhodesia in 1960 to fight white minority rule. He was jailed for 10 years and fled to neighbouring Mozambique, where he became one of the leaders of the guerrilla forces fighting Ian Smith’s regime.
Eventually freedom was won and Mugabe promised to embrace the country’s white population. He led the country through a golden period of economic growth and educational development that was the envy of Africa.
The international community turned a blind eye, however, to human rights abuses, most notably the 1980s ethnic cleansing of at least 20,000 people in Matabeleland province that crushed opposition from his rival Joshua Nkomo, the leader of the rival Zapu.
Opposition rose again in 1999 as the economy floundered and trade unions organised around the Movement for Democratic Change. Mugabe rigged elections and began a programme of land reform in which white farmers were forcibly evicted to make way for Zanu-PF party cronies or black Zimbabweans who lacked the skills and capital to farm.
This helped throw the economy into disarray, leaving Zimbabweans to rely on foreign food aid to avoid starvation. Hyperinflation ran riot and supermarket shelves were empty. The once-proud school and health systems began to crumble.
The political environment also became increasingly hostile, with activists and journalists persecuted, jailed or murdered. More than 200 people died in political violence around the 2008 election, which Mugabe was widely seen as having stolen, from the MDC’s Morgan Tsvangirai.
The late John Makumbe, a politics professor at the University of Zimbabwe, said: “He’ll be remembered as a villain. His legacy was destroyed by his staying, his violence, his imposing his own political allies and rivals.
“Robert Mugabe always had the seed of bad governance, cruelty, selfishness: ‘It’s only me who matters.’ He came in 1980 and donors flooded in; Mugabe looked angelic, he took on the colour of his surroundings. But by 2000 he had to rig elections and the rot had set in.
“The chameleon has its own colour: when it’s frightened, it takes on its original colour, and it’s ugly. He showed his true colours. His true colour is a killer. He killed his enemies.”
Mugabe’s second wife, Grace, became known for her lavish lifestyle, and joined the Zanu-PF politburo by virtue of her leadership of the party’s influential Women’s League in 2014.
She became a political liability for the ageing autocrat, however, and her outspoken criticism of Mnangagwa was one of the triggers for the military takeover that ousted her husband.
Mugabe remained devoted to his wife, calling her “my Grace” in his last press conference and demanding better treatment for his spouse from Zimbabwe’s new rulers.

China Overburdened P2P Regulations

Image result for P2pOverburdened Chinese regulators have left the peer-to-peer lending industry to poorly staffed local governments, according to ex-regulators, threatening the survival of an important credit mechanism once seen as crucial for the country's economy.
The resulting difficulties, as the industry tries to grapple with pyramid scheme scandals and runaway bosses, underline the struggles China will face as it tries to balance financial risk and innovation.
Although P2P lenders elsewhere in the world have been viewed sceptically because of how they mix mom-and-pop investors and higher-risk loans, in China the sector was seen as helping plug a gap left by larger lenders.
In 2016, P2P platforms in China loaned $61.5 billion, versus a total 12.65 trillion yuan ($1.78 trillion) in loans made by commercial banks, according to central bank data.
But the number of P2P firms in China has shrunk from 6,000 at their 2015 peak to 708 at the end of August, according to P2P-tracking portal Waidaizhijia, as regulators have struggled to implement new rules.
Lufax, once an industry leader and the best-known name internationally, plans to quit the business entirely after struggling to meet regulators' requirements.
The People's Bank of China (PBOC) and China Banking and Insurance Regulatory Commission (CBIRC) – already struggling to oversee an expanding finance industry – passed the responsibility to provincial governments in 2015, those sources said.
Without the expertise or numbers to confidently set standards, provincial regulators essentially froze, they said.
P2P firms and regulatory sources say that the resulting lack of resources, and standards that differ from province to province, have made it hard to plan.
"An industry that should have been regulated more was not, and now we're seeing that implode with even the stronger players like Lufax pulling out of the industry," said Zennon Kapron, director at financial technology consultancy Kapronasia. 

BOOM AND BUST - China's P2P firms have dabbled in all manner of misdemeanours, including misallocating funds and mass criminal enterprises such as Ezubao - a 50 billion yuan fraud - where convictions ranged from illegal possession of weapons to undocumented border crossings.
In the initial years of the P2P surge, regulators in China took a hands-off approach. But once fraud erupted and victims took to the streets, what was then called the China Banking Regulatory Commission drafted regulation that passed oversight to local authorities.
"It was a mission impossible ... as the number of P2P platforms was so large at the time," said a person at a northern branch of the CBIRC, who was not authorised to speak to the media.
Finance bureaus operating under local government authorities then passed the work down to district bureaus, who relied on P2P firms for data and disclosure.
P2P firms in each district had to submit accounts monthly, quarterly and yearly to the bureaus. They also had to submit a database with details such as cash flow to the city Commission of Economy and Information, which reports to the central bank.
"The problem was, there was no time to do the analysis," said a person who worked for more than a decade at the banking regulator and then at a P2P firm, who declined to be identified as she is not authorised to speak to the media.
"The authorities had no toolbox to supervise the firms; there was no offsite surveillance," the person said. "This is why it all went wrong."
Local agencies had tiny staffs compared with the CBIRC and the PBOC, according to one ex-regulator and a person at an internet regulatory body that oversees P2P. Both declined to be identified as they are not authorised to speak to the media.
The Shanghai CBIRC, for example, has about 300 people, sources familiar with the regulatory power said, while the local finance bureau had 16 to 39 at end of 2016, according to a 2017 study by Wang Chong, a central banker at PBOC's Jinan branch.
The ex-regulator said some districts were completely unstaffed.
Hebei province - population 75 million - surrounds Beijing, but officials in the finance bureau there failed to respond to 200 reports and requests from Fincera, once the province's largest P2P firm by loans, Fincera said in a statement to Reuters. The company has since left P2P lending.
The Hebei finance bureau did not respond to requests for comment.
In June and July, the province's authorities asked all P2P firms to close, according to two notices seen by Reuters.
But in other provinces, and cities such as Beijing, P2P companies are still operating.

LACK OF TOOLS - In other countries, P2P has thrived as an alternative to bank lending.
The U.S., UK and Japan all have active P2P companies. According to an analysis by the Asian Development Bank Institute (ADBI), the UK regulatory framework has been the most successful at encouraging the industry.
In the U.S., P2P platforms loaned $1.5 billion in 2016, while UK firms loaned $1.8 billion. Japanese P2P lenders had $1.2 billion of outstanding loans in 2017, according to the report.
In the UK, P2P firms are assessed by the country's top financial regulator, which focuses on engagement with the platforms, according to the 2019 ADBI paper. It provides feedback on their plans and runs a sandbox for testing new models, said the paper.
Ultimately, Chinese regulators are more concerned with social stability than the survival of P2Ps, industry insiders said.
"Top regulators don't necessarily see the bigger picture," said the banking regulator based in a northern city.
Mass protests, such as one in Beijing last year, are "likely to lead to the cutting-off of the whole industry," the person said.
The CBIRC and PBOC didn't respond to requests for comment.

Stripe - Offering banking Loan

Image result for stripeThe world’s most valuable private fintech company is moving into a new area of banking: loans. Stripe, valued at $22.5 billion after its last funding round, announced the launch of a lending arm called Stripe Capital on Thursday. The new venture is meant to help online companies borrow money to grow their businesses — which in turn, helps Stripe’s business.

“Stripe Capital makes it easy for internet businesses to get the funds they need, when they need them,” Stripe’s Chief Product Officer Will Gaybrick said in a statement. 

Gaybrick said small businesses are the “engines for job creation in our economy” and it should be “trivially simple and lightning fast” for them to access the capital and invest in their own growth.

Stripe, whose rivals including Jack Dorsey’s Square and Netherlands-based Adyen, makes software that allows businesses to accept payments over the internet. Growth in companies using their platform could eventually help Stripe’s bottom line.

The San Francisco-based company joins a list of other technology companies competing with banks to offer loans to small businesses. PayPal and Square, fintech rivals in the payments business, both reported significant growth in their loan portfolios in the second quarter. 

E-commerce giant Amazon offers similar products to merchants on its payments network through “Amazon Lending,” an invitation-only program with loans as low as $1,000. In many cases, those loans are well below the average amount a bank would facilitate. In the case of Square, the average loan is between $6,000 and $7,000 and could be as low as $500. Saying goodbye to the FICO score One advantage over banks, if you ask the tech companies, is data. 

Stripe and others are shunning a FICO score, the traditional way of assessing credit-worthiness. Instead, they use payment history from their own platforms. Stripe, for example, will draw data from “advanced algorithms” to trends like payment volume, percentage of repeat customers, and payment frequency. Stripe said the reliance on tech allows them to issue loans quickly. 

According to the company, there’s no “lengthy application, eligibility is determined quickly, funds hit a user’s Stripe account the next day, and businesses can repay as they earn.” These tech companies collect the loan repayments as sales come through, instead of setting payment dates on the 15th of the month or another arbitrary day, which they say alleviates a burden for companies. 

Still, some have flagged inherent risks in lending to small start-ups. Karen Mills, a senior fellow at Harvard Business School and former head of the U.S. Small Business Administration during the Obama years, told CNBC earlier this year that an inevitable downturn in the economy could hit these companies the hardest.

“Having run small businesses through three different economic cycles, I would say we should expect another cycle and one has to factor that in,” Mills said. “Small businesses get hurt very hard in cycles particularly those who are dependent on Main Street sales.”Stripe, which ranked no 13 on the CNBC Disruptor 50 list was founded in 2010 by Irish brothers Patrick and John Collison. CEO Patrick Collison announced on Twitter earlier this year that former Google Cloud CEO Diane Greene was being added to the board.It has become an attractive bet for venture capital as consumers overwhelmingly move to online payments. 

The San Francisco-based start-up has ushered in investments from Andreessen Horowitz, Peter Thiel, Elon Musk, Google’s venture arm Capital G, Sequoia Capital and Kleiner Perkins, among others, according to PitchBook.As a result of the booming venture capital interest, it’s now one of the most valuable “unicorns” — private firms worth more than $1 billion — in the U.S., and is by far the most valuable private fintech company. Cryptocurrency exchange Coinbase is the next largest with an $8 billion valuation, according to CB Insights.

Thursday, September 5, 2019

Palm-Oil-Free Product Not Welcome

Image result for mydinMalaysia’s biggest supermarket chain Mydin has removed products labelled palm-oil-free from its stores, its top executive said today, as part of a campaign by the world’s second-largest producer of the oil to protect the commodity’s image at home and abroad.
The US$60 billion (RM240 billion) world palm oil trade has been the target of environmentalists because of the vast areas of tropical rainforest they say have been cleared to grow the commodity. The European Union this year passed an act to phase out palm oil from renewable fuel by 2030 due to the deforestation concerns.
Malaysia, which together with neighbour Indonesia produce about 85 per cent of the world’s palm, is considering a law banning all products flaunting non-use of the oil. Malaysia has also launched an international public relations and lobbying offensive to protect the reputation of its key export.
Datuk Ameer Ali Mydin, managing director of Mydin Mohamed Holdings Bhd, said his stores removed all anti-palm products yesterday to convey the importance of palm oil to the Malaysian economy, South-east Asia’s third biggest.
“We must support palm oil but must also make sure (to counter) the subtle messages, the marketing and branding exercises that people do, to tell customers not to take palm oil,” Ameer Ali told reporters at an event.
“By labelling something that there is no palm oil, you’re actually telling people that palm oil is bad for you.”
He said the anti-palm products at his chain were imported, but declined to give any figures.
Teresa Kok, Malaysia’s minister of primary industries, welcomed Mydin’s move and told reporters she hoped other supermarkets and shops in the country would follow suit. In July, the Malaysian government promised action against an international school for spreading “anti-palm oil propaganda”.
Indonesia, the world’s top palm oil producer, last month told some retailers in the capital Jakarta to remove food products with “palm oil-free” labels from their shops.
Palm oil is used in cooking and in items like soaps and shampoo, snack foods, pizza, bread and biodiesel. Food accounts for nearly 70 per cent of global consumption of palm oil. 

AXA Malaysia - Up For Sales

Image result for axa
French insurer AXA SA and Affin Bank Bhd are exploring options including a potential sale of their life and general insurance business in Malaysia that could fetch about US$650mil, according to people with knowledge of the matter.
Kuala Lumpur-based Affin Bank and AXA are working with advisers on the potential deal, said the people, who asked not to be identified as the information is private.
The financial firms are seeking around US$500mil on AXA Affin General Insurance Bhd., while they are looking to raise as much as US$150mil from AXA Affin Life Insurance Bhd in a transaction.
Deliberations are at an early stage and the companies could decide to keep their holdings in the Malaysian business, the people said. A representative for AXA declined to comment, while a representative for Affin Bank didn’t immediately respond to requests for comment.

AXA Affin General Insurance is among the top medical and health insurers in Malaysia, with 5,000 agents across the nation. The company underwrote 1.44 billion ringgit ($341 million) in gross earned premiums and posted a net income of 100 million ringgit in 2018, according to its latest annual report.
AXA Affin Life Insurance, set up in 2006, earned gross premiums of 463.4 million ringgit in 2018, down from 490 million ringgit a year earlier, its annual report shows. The company’s losses narrowed to 8.1 million ringgit from 17.7 million a year ago. AXA owns 49.99% of the Malaysian general business operations, while Affin Bank holds 49.95%, according to AXA’s website. In AXA Affin Life, Affin controls 51% and the rest belongs to the French insure. 

Archery Club - Missing The Target

Image result for bullseye ass of donkeyThe Seri Iskandar Archery Club has apologised to the supermarket Econsave Cash & Carry Sdn Bhd after sharing a Facebook post that accused it of not carrying Muslim or bumiputera products. The Perak-based club published the apology after the supermarket gave it a 48-hour ultimatum to retract its false accusation.
"I hereby retract all my statements regarding Econsave that day," the club said in its Facebook post yesterday. I admit that I have made a mistake sharing misinformation to the public; especially to the residents of Seri Iskandar, and more generally the people of Malaysia. I once again apologise to Econsave Seri Iskandar Perak in particular, and more generally Econsave Malaysia. I will not repeat this mistake."
Its earlier post regarding Econsave has been deleted.
On Tuesday, Econsave lodged a police report against two Facebook accounts believed to have disseminated misinformation claiming that it does not sell Muslim or bumiputera products. Econsave general manager Mas Imran Adan, who lodged the report at the Johor Bharu Utara police headquarters, said his company takes the slander seriously.
"Econsave is one of the supermarkets selling many bumiputera and Muslim products, including Tamin, Adabi, Kipas Udang and Enaq branded sauces, Faiza branded products, Saji branded oil and many more," he said.
Mas Imran also gave both Facebook accounts 48 hours to retract their statements and apologise.
In its latest statement, Econsave confirmed that it received the apology from the Seri Iskandar Archery Club and conditionally accepts it.
"We accept the apology from Seri Iskandar Archery Club on condition that they take responsibility to ask every individual who had shared the screenshot of the slanderous Facebook post to retract their posts on all platforms they used, or face legal action. We urge all consumers and netizens to check the veracity of any news before disseminating it," it said.

OJK - Monitors Fintech - GESIT

Image result for fintechThe Financial Services Authority (OJK) has launched the Electronic Gateway for Digital Finance Information Systems (Gesit), which is said to be a more efficient way to monitor the development of financial technology (fintech) amid the industry’s rapid growth in the country.
“This platform is in the early stages. Further developments are on their way,” OJK deputy chairman Nurhaida said in Jakarta on Tuesday.
Gesit is an online registration system for fintech startups wanting to grow its business through the OJK Infinity, an innovation hub, business incubator and education center for fintech established last year.
Through the newly launched platform, fintech industry stakeholders could also get access to the latest news on fintech issues and make consultation appointments with the OJK Infinity team.
The OJK Infinity has received 121 new fintech registrations, of which 48 fintech startups have been verified and ready to start their businesses.
The authority is preparing several policies to spur Indonesia's fintech development, OJK chairman Wimboh Santoso said.
“We will launch them before year-end,” he added, without elaborating on the proposed policies further.
The OJK is also assessing possible partnerships with other Southeast Asian countries to realize such a vision, Wimboh said.
The OJK, which is responsible for regulating peer-to-peer fintech lending, has issued operational licenses to 127 fintech firms as of July. In the month alone, fintech lending transaction value stood at Rp 49.7 trillion (US$3.5 billion), an increase from Rp 44.8 trillion recorded in the previous month, its data shows.