French foreign aid blacklist surprises PH

Rappler.com

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There were no warnings or early indication from the French government despite several dealings between the two countries' finance departments, Deputy Presidential Spokesperson Abigail Valte says

MANILA, Philippines – The news about the blacklist that the French government released adding Switzerland and 16 other countries that “do not help investigate foreign aid fraud” surprised the Philippines.

On Tuesday, May 28, Deputy Presidential Spokesperson Abigail Valte told a press briefing that the Aquino government was caught unaware that the Philippines is already among the 8 countries that were included in French government’s blacklist, which on May 27 was increased by 17 more.

There were no warnings or early indication from the French government despite several dealings between the two countries’ finance departments, Valte said.

“We’re looking to get more details on this particular report because, from the media reports that we picked up, it seems that we’re in the company of Switzerland and Brunei, among other countries,” she said.

“We’re trying to get a better handle on what it really is and what the observations are. I understand that we’re working with them on the finance side, on several initiatives, and it seems nothing of that sort was discussed,” Valte said.

Valte said Finance Secretary Cesar Purisima was getting more information on the scope of the factors the French government considered for the blacklisting so the government could properly address them. “We’d like to get first the universe of what was considered before we respond to it.”

France adopted its own blacklist of countries deemed to be uncooperative in tax matters back in 2010. This is separate from the blacklists released by Financial Action Task Force (FATF) and Organisation for Economic Cooperation and Development (OECD).

This move by the French government affect the French companies’ subsidiaries doing business in countries appearing on the blacklist through unfavorable tax on dividends, interest, and royalties.

The recent blacklist regarding foreign aid, however, bans the use of French banks in distributing development funds.

Valte said this may impact non-governmental organizations or NGOs operating in the Philippines that also are the recipients of several grants. She said they would have to check the forms of assistance given and if there were any demands or parameters that would go with them.

Based on reports, Philippines has been part of the 8 “non-cooperative states and territories” that already includes Botswana, Brunei, Nauru and Guatemala.

The new additions included Switzerland, Lebanon, Panama, Costa Rica, the United Arab Emirates, Dominica, Liberia, Trinidad and Tobago, and Vanuatu. – Rappler.com

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