Mediaboss Marketing

When the restaurant where 30-year-old Santosh Kumar worked had to close because of the government-mandated coronavirus lockdown, he had no choice but to make his way back home to the eastern state of Jharkhand. The five-day journey back by bus, from his workplace in the city of Hyderabad, was excruciating.

I survived on tea and biscuits. Sometimes, we would get some rice. Now Im home, and theres still no word, and soon, the grains in my home will also run out, he told VICE.

Rajeev Rai, another migrant worker, travelled four days from Surat, in the eastern state of Gujarat, to reach Jharkhand after the lockdown. Rai talked about the discrimination he and other migrants faced during their journey. We had packed almonds, chappatis and water, even a stove. But once we ran out, we tried to get things from shops on the way, he said. The shopkeepers would shoo us away, or throw items or money at us because they thought we might be the carriers of the virus.

He added, We heard of other migrants, who walked back to Jharkhand, being chased away by people if they tried to sleep in empty buildings at night. There was no facility by the government to fall back on.

Stories like Kumar's and Rais exemplify the neglect and brutal treatment of migrants under one of the worlds strictest and harshest lockdowns. India's nationwide lockdown, announced on March 25, effectively demanded 1.8 billion people to stay at home. The order saw a sudden shutdown of the economy and sealing of the borders in as little as four hours, and brute force being used by the state police against anyone seen outside. Migrants like Kumar and Rai, who were forced out of jobs once businesses and workplaces shut down, were suddenly forced to go home on gruelling journeys that were fatal for many.

Even today, after lockdowns have eased in many states across the country, reports of migrants dying of hunger and exhaustion continue to trickle in. The causes range from walking hundreds of miles, to poorly arranged special trains meant to transport migrants home, to neglected quarantine centres, to joblessness.

But now migrants have had enough.

We want justice for our fellow migrants who died, said Kumar. And answers for those who survived but are still facing a bleak future.

Kumar and Rai are a part of hundreds of protests that have erupted across India. On June 1, migrants in over 700 rural and urban towns and villages staged a peaceful protest to demand justice for the workforce that forms the backbone of the country's most thriving cities. They wore masks, maintained social distancing and carried placards with messages like Why should my child stay hungry? We also voted for you, and Stop this cruelty on migrant labourers. We will remember this.

In other parts of the country, protests turned violent. In Chennai, 500 stranded migrants staged a protest after they reportedly did not get anything to eat for three days, at the construction site they were employed at. In Gujarat, clashes included stone-pelting and violence against paramilitary forces. In Mumbai, migrants who ran out of rent money and food clashed with local police. Similar incidents erupted in other states.

Villagers in Bihar observed a two-minute silence for the migrants who succumbed to hunger and exhaustion during the lockdown. Photo: Right to Food Campaign

The plight of migrants and the hunger problem is not just one states problem right now. It is the same across the country, said Ashrfinand Prasad, an activist in Ranchi, Jharkhand, who works with non-profit Right To Food Campaign, which is focused on food security.

Jharkhand is one of the worst-hit states in terms of poverty and hunger under the lockdown. It is also one of the many battlegrounds for the migrants staging their protests.

India already ranks poorly in the global hunger statistics, so the pre-existing problem of malnourishment has been made worse by the lockdown-induced mass starvation. A study found that 90 percent of workers lost livelihood under the lockdown, while 94 percent dont have access to the central governments compensations such as food relief. Some experts say that theres actually no way of knowing how many died due to starvation, although conservative reports show it is at least a few hundred.

The crisis is now impacting other aspects of migrants lives too. Apart from the hunger and deaths, the migrants are also traumatised. There is a huge mental health crisis in this section of society. Some migrants are committing suicide, Prasad told VICE.

In May, the Indian Psychiatry Society observed that one in five Indians showed signs of mental distress under the lockdown. In rural pockets, this has been caused by reverse migration. Prasad added that hunger and suffering also led to increased cases of conflicts within homes.

Right to Food Campaign, which has been mobilising migrants for work in their native towns and also providing them with relief, notes that the situation is too alarming to ignore. Weve been doing relief work and petitioning since 2001, but this has been going on for too long. The government response has been inadequate, said Dipa Sinha, the organisations convener. We have started campaigns across the country wherein migrants feel safe and comfortable to raise their voices, and not remain passive agents in this scenario.

As a part of this campaign, Right to Food has been posting protest visuals from the ground on Twitter as well as pushing the issue to policy officials and governments. Even though the crisis is unprecedented, it doesnt mean that the authorities stop being accountable, she added.

The Indian government claims it has provided substantial relief distribution, but activists say the majority of migrants slip through the cracks of the social welfare system because they lack adequate identification papers or bank accounts. Rupesh, an activist in Patna, in the east Indian state of Bihar, warned of a looming debt crisis in one of the poorest regions in India.

Here, the state government promised Rs 1,000 ($13 USD) to be deposited into peoples accounts. But we found that 60 percent of people didnt get that because they dont have bank accounts, he said. Theres also another problem. People are taking loans to cover for the loss of livelihoods during the lockdown. Very soon, this will blow up and we will have a debt crisis in the state.

At the beginning of the lockdown, Finance Minister Nirmala Sitharaman announced a relief package for daily wage earners saying, The government does not want anyone to remain hungry. As of writing, government officials have yet to acknowledge the crisis, even going so far as to deny it is happening.

Despite the mass exodus of migrants after the lockdown in March, Solicitor General of the Supreme Court Tushar Mehta claimed, No migrant person was walking on the roads in an attempt to reach his/ her home towns villages. Last month, the highest judicial body also declined a petition to help stranded and hungry migrants, stating, It is impossible for this court to monitor who is walking and who is not.

As the situation worsened, more relief schemes were promised in the form of housing and food for migrants. Yet the crisis remains unchanged.

India is not alone. In Chile, food shortages caused by the pandemic and the lockdown led to social unrest and even violence. The same happened in Venezuela, while in Colombia, impoverished families hung red rags outside their homes as an SOS for the hunger crisis. But in India, theres a unique problem. Here, the starvation is juxtaposed with an unsettling amount of excessive food that are lying in Indias government warehouses. A recent report found 6.5 million tonnes of excess grains, meant for the public, allowed to rot during the lockdownan amount that is said to be more than what was distributed through the government food distribution scheme.

The Food Corporation of India denied allegations of food wastage.

Jayati Ghosh, a professor at the Centre for Economic Studies and Planning at the Jawaharlal Nehru University in New Delhi, emphasises that the government, not the virus, is to blame for the hunger crisis. The first point to note in terms of this hunger crisis is that this is not related to the virus. It is 100 percent policy-driven when the complete and brutal lockdown was imposed without notice, Ghosh told VICE.

We have 95 percent informal workforce, 50 percent are self-employed, and 80 percent of the rest depend on daily wages. These are not new facts. The government knew this, and despite that, the lockdown was imposed and drove people to starvation. Ghosh called the hunger crisis a betrayal under the pandemic. The nature of this betrayal [of the migrants] is unprecedented in Indian history, and unmatched by any other country in the world, she said.

But the worse may be far from over. Sitaram Rai, a 24-year-old migrant worker from Jharkhand, said that the current unemployment and hunger problems may just be the beginning.

Theres definitely more to come over the next three to four months, he said. We will be jobless in our native villages. And our only other option is to return to the cities where we worked. Who knows if we will come back alive, whether due to the virus or not.

Ghosh reiterated the concern. We will realise the extent of this damage only once the lockdown lifts. Many activities will not exist, along with many jobs, and sources of livelihoods. Its a terrifying prospect, and its clear that the government does not have a grip on this basic reality.

Follow Pallavi Pundir on Twitter.

This article originally appeared on VICE IN.

Go here to see the original:
Indians are Protesting the Hunger Crisis and Migrant Deaths Triggered By the Coronavirus Lockdown - VICE

The migrant crisis triggered by the Covid-19 pandemic is the worst humanitarian tragedy seen in India since Partition. Nothing illustrates that more than the heartbreaking video of a toddler trying to wake up his dead mother on Bihars Muzaffarpur railway platform which has gone viral across the world. The mother and the child had arrived at the station on one of the migrant trains from Ahmedabad. Initial media reports said that the mother, Arvina Khatoon (23), died of heat, thirst and hunger as passengers were not served food or water inside the train.

Railway authorities were quick to deny the reports. East Central Railway tweeted that Arvina had a health issue which was the reason for her death. Their denial, on May 27, was backed by the newly-introduced fact-checking wing of the Press Information Bureau (PIB) which termed the media reports incorrect and imaginary. According to PIB Bihar, Arvina was suffering from an illness before she boarded the train and this was corroborated by her family. In an earlier tweet, the PIB Fact Check section had stated that the cause of the death cannot be determined without an autopsy. PIB did not provide any details on the alleged statement by Arvinas family members or the type of illness she was suffering from.

Indias most credible fact checking platform, Alt News, has put out a report based on investigations by their reporter, Pooja Chaudhuri, which separates fact from obfuscation and makes for fascinating reading. Alt Newss report says that Arvina came from a poor family from Srikol village in Katihar district, Bihar. She is survived by her parents and six sisters, three of whom are yet to be married. Living under the same roof, the family barely managed to make ends meet. To add to the hardship, Arvinas husband divorced her about a year ago. To support her two children, she moved to Ahmedabad, with her children, to work on a construction site where one of her sisters and her brother-in-law were employed. Following the lockdown, Arvina and her family members in Gujarat lost their jobs and were running out of money. On May 23, they were finally able to board a special train from Ahmedabad to Katihar. However, Arvina passed away during the journey on the afternoon of May 25. This was about two hours before the train reached Muzaffarpur station.

After her death made headlines and the video went viral on social media, the authorities were quick to cover up the tragic event. While PIB claimed that Arvina was previously ill, others shared a police complaint allegedly filed by Arvinas brother-in-law, Mohammed Wazir, who was travelling with her on the train. The complaint stated that she was seriously ill, physically and mentally. However, JDUs Rajiv Ranjan Prasad released a video where Wazir can be heard saying that they were given food in the train and denying that Arvina was suffering from any illness. The BBC also quoted Wazir as saying that they were given a meal once during the day and served snacks and water at intervals. He told BBC too that Arvina did not have an existing medical condition.

In order to get at the truth, Alt News contacted various individuals who live in the vicinity of Srikol village where the family comes from. The Vice-President of All India Student Association, Bihar, Kazim Irfani, agreed to pay them a visit and ask a list of questions prepared by Alt News. Speaking with Irfani, Wazir gave a different statement than the one he had given to BBC and claimed that they were not given food and water in the train. However, he maintained that Arvina was not previously ill, consistent with his statement to BBC and the video posted by JDUs Rajiv Ranjan Prasad.

However, the official complaint filed at Muzaffarpur police station states that Arvina was both physically and mentally unwell. When asked if Wazir had written the complaint himself, he said that he cannot read and write but only knows how to sign his name. The police complaint carries his thumb impression. A policeman had written the complaint on his behalf. However, it wasnt read out to him before his thumb impression was taken, said Wazir. He reiterated that Arvina was not psychically or mentally ill. In a phone conversation, Wazir told Alt News that his initial statements were haphazard because he was in a distressed state of mind: She (Arvina) had just died and they were asking questions. I said whatever came to my mind.

However, Wazir was not the only person accompanying Arvina. A video statement was given by Arvinas sister and Wazirs wife, Kohinoor Khatoon, who was also on the Shramik train from Ahmedabad. She said that Arvina did not complain of any illness when they left, adding that she was yearning for water in the train. While Wazir stated that Arvina had eaten before taking the train, Kohinoor said she had not. However, both stood their ground that she was not unwell at the time of boarding.

Kohinoor further said that they had visited a doctor for a check-up before they got on the train and the examination found that Arvina was fine. Wazir made a similar statement in a phone conversation with Alt News. This is an important aspect of the story because as per government guidelines, only people with no Covid-19 related symptoms are allowed to travel on the special trains. Since Arvina was allowed to board the train, it is evident that she did not have any such symptoms.

Even if she was suffering from a long-term disease, PIB does not specify the type of illness serious enough to take her life, neither were any medical records shared. The government did not conduct a post-mortem of the body that wouldve ascertained the cause of death. If media reports that Arvina died of heat, starvation and dehydration are discounted because, according to Railway officials, only an autopsy can determine that, how then can the government assert that she did not die of the above mentioned reasons?

Alt News also spoke to another one of Arvinas sisters, Parveena, who confirmed that she did not have an existing ailment. Her father, Mohammed Nehrul, said the same. His statement says: She wanted to take care of her children and had shifted to Ahmedabad. It had been eight months but in the last two months, she had trouble making ends meet and borrowed about Rs 3,000 for food. He added that they had spoken to her half an hour before she had boarded the train when his daughter told him: We are all okay, dont worry. We are going to get on the train. The family found out that she had died after Kohinoor called and informed them.

Mohammed Nehrul was also contacted by NDTV. He told the channel that Arvina could go to Ahmedabad and work as she was mentally and physically sound. Arvinas mother gave a similar account. She too said that Arvina wasnt sick and wanted to come back home because the lockdown had rendered her jobless. A local journalist from Katihar, Dainik Bhaskars Noor Parvez, had visited the family a day after Wazir and his wife returned with Arvinas children. Parvez told Alt News that the family members informed him that passengers were not given food in the train and Arvina was not suffering from any illness before boarding.

Expert medical opinion

Alt News contacted Dr Sylvia Karpagam for her medical opinion on the death of several migrant workers travelling in Shramik trains. Dr Karpagam is a specialist in community medicine with over 15 years of experience. She has worked in Right to food and Right to health campaigns. She supports lawyers in looking at post-mortem reports in medico-legal cases. She stated: These deaths of migrant workers in trains cannot have a single reason. The post-mortem should include underlying causes and pre-existing conditions as well. Even if some of the 80 people who have died had an existing medical illness that is just one factor. The question is what aggravated the problem which caused them to die on the train. The problem of poor nutrition is already there in the country. This affects the poor migrant workers more than most people and they often do not have reserve stores of energy. During the lockdown, this became worse as we have seen that they have been driven to travel long distances by foot because they had nothing to eat as their incomes were suddenly lost.

Dr Karpagam further added: On top of food deprivation, you have dehydration due to the long journeys in hot weather. If hydration was ensured, this could have prevented many of the deaths. Some already sick and starving patients could still have been saved if they had good access to water. Dehydration is more deadly than starvation. These people clearly suffered both. First the heat exhaustion sets in and given the duration of the journey, this can easily become a heat stroke. Heat stroke is a medical emergency and can only be handled in good hospitals. This could not have been addressed in the train by anyone but easily prevented by ensuring adequate water supply for everyone at the very least.

Railway Minister Piyush Goyal recently claimed that all deaths in trains were due to pre-existing conditions. However, Dr Karpagam pointed out that people with chronic conditions fly and travel in trains all the time. Doctors allow their patients to do that with the necessary precautions. They dont just die at the end of long journeys in such large numbers. The people with chronic conditions are usually aware of their issues and would do what they can to take care of themselves on a long journey. But if they have died in such large numbers, we have to consider the effects of starvation, hypoglycemia (low sugar) and dehydration on top of the medical issues and prolonged starvation during the lockdown they were already having.

The tragic incident raises a lot of questions, none of which were cleared by either the Railways or PIB Fact Check.

In conclusion, there was no evidence provided by Railway authorities that Arvina Khatoon died of a pre-existing condition. Furthermore, PIB Fact Check, which has emerged as the latest tool for bullying journalists and media organisations, did not do a thorough fact-check. In fact, PIBs investigation into the death of a migrant worker was barely two sentences. In contrast, it took Alt News almost a week to establish the facts.

By India Legal Bureau

Read more from the original source:
Dying of the Light - India Legal

80 percent of the small and marginal farmers said that their income is reduced after Covid-19 outbreak, says to the rapid research conducted by Caritas India in 18 different states of India. In an online meeting on 06 June 2020, Caritas India shared its two rapid research findings conducted on migrants and small and marginal farmers during COVID -19.

The meeting was attended by President of Catholic Bishops Conference of India, Presidents of Regional Bishops Council and Forum Directors across India. Caritas India took the opportunity to also present the consolidation of the regional meeting discussions on COVID-19 response and the data collection format with the participants.

The pandemic has created an unprecedented situation which has impacted every section of the society, but the migrants and small farmer communities had to pay a lot in this crisis. Livelihood loss was not only seen in the urban areas, but the rural areas also suffered its impact during this lockdown. It has created serious implications on the lives and livelihood of the people.

Caritas India, the social development arm of Catholic Church in India has been proactively reaching out to the most marginalised and, in this regard, organised several webinars with faith leaders, interfaith leaders, experts from varied discipline to understand and plan the action, shared Fr. Paul Moonjely, Executive Director. He also informed that collectively the Catholic Church has reached out to over 1.1 crore people in this COVID-19 with different types of support.

There is a strong need of experience exchange to reflect and communicate because there is a need of good documentation of our work, shared Cardinal Oswald Gracias, President of Catholic Bishops Conference of India. This documentation is important to preserve our work in history and to reflect on our successes and areas of improvements so that other countries, conferences and institutions learn from us. He shared though Catholics are very few in numbers, but we can help so many people in need.

Archbishop Sebastian Kallupura, Chairman of Caritas India congratulated all for reaching out to the most marginalised in the most powerful way. Citing Pope Francis, he shared that though no solution to the real problem is found, all are trying what they can. This gives new hope to the society in general. He suggested to network with local administration and CBCI office for labour to make adequate plans focussing our target group and map the migrant workers in the area. We also need to work with CCBI officer of environment projection to care of our common home and live Laudato si moto. Lastly, he also suggested to organise mass health awareness campaigns along with CBCI Health.

Caritas India presented the rapid research on distress migrants to gauge the extent of severity and to understand the impact of the pandemic on the livelihood of the migrant community. The study focused on basic needs, livelihood, the rights and entitlements, discrimination and exploitation of the migrants. The research was conducted in 10 most impacted states of India including Uttar Pradesh, Bihar, Jharkhand, Odisha, Madhya Pradesh, Telangana, Chhattisgarh, West Bengal, Maharashtra and Assam.

The research revealed that 28.7 percent migrants do not want to come back to the cities, whereas 32.1 percent showed their willingness to return when the situation gets alright, other 31.3 percent are still in a dilemma. There is a huge loss of education recorded for the migrant children, around 46.4 percent had to discontinue their studies. Majority of 95.2 percent migrants has lost their means of livelihood and the around 10.6 per cent have lost their family members in the pandemic. Talking about the employment opportunity under MGNREGA, only 6 percent have received jobs, whereas 37.8 percent could not get the work due to lack of job cards.

In another rapid research, Caritas India has presented the Impact of COVID-19 pandemic on smallholder farming sector. Around 424 farmers were contacted for this research across 18 states through 45 Diocesan partners. The research focused on the impact of the pandemic on agricultural production, distribution, availability of food & nutrition, income generation and expenses.

The research states a shocking revelation that 80.4 percent farmers have reduced income. The Farmers have serious apprehensions on upcoming harvesting season as great financial losses have been incurred in the previous season and hence are fearful to invest in the next season. The research says only 55.4 percent of farmers have received support from both Govt and NGOs whereas 9.4 percent have not accessed any support either from governments or NGOs. The food security is greatly threatened as 49 percent of the surveyed household have limited availability of food stock and around 16.5 percent respondents skipped their meal in the last 10 days due to lack of food availability.

Caritas India has conducted several meetings with the Regional Forum Chairman, and directors of Forum and Diocesan Social Service Society of all the regions to understand the Covid-19 relief response. Assistant Executive Director of Caritas India, Fr. Jolly Puthenpura shared the consolidation of series of consultations to understand and plan the strategies of present and future for short term and long term. He presented various activities and support extended to the vulnerable in terms of the community kitchen, food kits, hygiene kits, PPE kits, Shelter and quarantine support, psychosocial support etc. He presented the new pastoral approach in life after COVID-19 pandemic. He also shared the three-tier social intervention approach at national, regional and diocesan levels.

Focusing on the accountability of each and everyone, Executive Director of Caritas India, Fr. Paul Moonjely emphasised the need for good documentation of the COVID-19 response. Emphasising on documenting the experiences and faith responses, he shared that it is important to share the message that the Catholic Church is vibrantly serving the people inspired by its faith. He presented the framework to collect and collate different pieces of information and converting into qualitative and quantitative results which can be a great expression of our faith in action.

Here is the original post:
Caritas India presented research findings of Covid-19 impact on migrants and farming sector - India - ReliefWeb

BRUSSELS (AP) Europe could have its free travel zone up and running again by the end of this month, but travelers from further afield will not be allowed in before July, a European Union commissioner said Friday after talks among the blocs interior ministers.

Panicked by Italys coronavirus outbreak in February, countries in the 26-nation Schengen travel zone where people and goods move freely without border checks imposed border restrictions without consulting their neighbors to try to keep the disease out. The moves caused massive border traffic jams and blocked medical equipment.

Free movement is a jewel in Europes crown that helps its businesses flourish and many European officials feared that the very future of the Schengen area was under threat from coronavirus travel restrictions. These added to border pressures already caused by the arrival in Europe of well over 1 million migrants in 2015.

I personally believe that we will return to a full functioning of the Schengen area and freedom of movement of citizens no later than the end of the month of June, European Union Home Affairs Commissioner Ylva Johansson said Friday after the video-conference meeting.

All but essential travel into Europe from the outside is restricted until June 15, but many ministers suggested Friday that they want this deadline extended until early July.

The meeting came as the Czech Republic was easing restrictions with some of its neighbors; Austria, Germany and Hungary. Also Friday, Switzerland said it plans to lift restrictions on travel from EU nations and Britain on June 15. Switzerland is not an EU member but is part of the Schengen travel zone.

READ MORE: EU proposes 750 billion-euro coronavirus recovery fund

Johansson said Europes Centre for Disease Prevention and Control believes that confinement, social distancing and other health measures are working. More than 175,000 people have died in Europes coronavirus outbreak, according to a tally by Johns Hopkins University, mostly in Britain, Italy, France and Spain.

Physical distancing and other health-related measures are still needed, of course. But health authorities are clear that there is no longer a clear justification for either travel restrictions or border measures within the EU Schengen area, Johansson said.

German Interior Minister Horst Seehofer, whose country plans to lift its remaining border checks on June 15 like many other EU countries, said the internal border controls will be over in all of Europe at the end of June.

The news should come as a relief to millions of Europeans still trying to work out their summer vacation plans which begin for many in July once the school year is over and who are anxious to know whether they will be allowed to head to the continents beaches or mountains.

Its also good news for European countries whose economies have been ravaged by the spread of COVID-19 and are hoping for a much-needed boost from their decimated tourism industries.

But the perception that Italy is still dangerous is weighing heavily on its tourism sector, which along with related industries accounts for 13% of Italys gross domestic product.

In an apparent reference to Austria and Greece, which have not fully opened to Italian tourists, Italian Foreign Minister Luigi Di Maio denounced the ad hoc measures put in place by some countries as a violation of the European spirit that has always distinguished us.

Di Maio said Rome would provide regular infection data to Austria so they can have certainty about Italys numbers. Last week, he said Italy refused to be treated as a leper after Greece announced a list of 29 countries whose citizens could visit without testing or quarantine requirements, but excluded Italians, Britons and residents of other hard-hit countries.

READ MORE: EU warns of recession of historic proportions this year

Spanish Prime Minister Pedro Snchez and Italian Premier Giuseppe Conte have sent a joint letter to European Commission President Ursula Von der Leyen urging the lifting of restrictions at our internal borders () in a coordinated, non-discriminatory manner. The letter was shared with media in Spain on Friday.

The government leaders of the eurozones third- and fourth-largest economies want the European Centre for Disease Prevention and Control to play a leading role in defining as soon as possible these criteria together with the member states.

Spain, which relies on tourism for 12% of its GDP, plans to wait until July 1 to drop its 14-day quarantine requirement for everyone who crosses its borders, Spaniards included.

Many of our member states are approaching the date when they are going to reopen their borders to tourist mobility, Snchez and Conte wrote. How this process is carried out will largely determine our citizens perception of the centrality of the European Union in tackling this crisis.

Germanys Seehofer said most of the EUs interior ministers want to extend the current entry ban on outside travelers by 14 days until July 1.

Visitors from the United States, Russia or Brazil, for example, would only be allowed back into Europe on based on how those nations have brought the spread of the virus under control, he said. Those three nations account for 44% of the worlds confirmed infections and nearly 38% of the worlds confirmed coronavirus deaths, according to Johns Hopkins.

Worldwide, 6.6 million people have been confirmed infected by the virus and over 391,000 have died, according to Johns Hopkins, but experts say the tally understates the true toll of the pandemic due to limited testing, missed mild cases and deliberate government undercounts.

Read more:
European Union wants borders free of virus restrictions by end of June - PBS NewsHour

On 7 May 2020 the European Commission included Mauritius in its list of identified third-country jurisdictions having strategic deficiencies in their Anti-Money Laundering/Counter Terrorist Financing (AML/CFT) regimes which pose significant threats to the financial system of the Union (high-risk third countries).

The decision took the local financial services community by surprise and puts at great risk a sector of the Mauritian economy which accounts for around 12% of GDP. It also comes at a time when the resilience of the islands economy is going to be thoroughly tested in the aftermath of the COVID-19 pandemic.

As reiterated by the Prime Ministers Office in a Communique on 2 June 2020 (Communique), Mauritius has always adhered to international standards of good governance, transparency and taxation. To recall, the EU and the OECD have recently confirmed that Mauritius' tax regime is in conformity with their governing standards. Mauritius has also incorporated FATCA and CRS requirements into its domestic laws and has ratified the OECDs Multi-Lateral Instrument (MLI).

The Communique lays emphasis on the fact that in January of this year, Mauritius took cognisance of the FATF conclusions on its legal and regulatory framework on AML-CFT. It immediately formulated and agreed upon a detailed action plan with the FATF, with specific deadlines to remedy the identified shortcomings. It is noteworthy to mention that, out of a total of 58 recommended actions, Mauritius has only five outstanding actions to implement by September 2021.

Much has been written and said about the arbitrary nature and unfairness of the European Commissions decision. On the very same day that it adopted a new methodology, the Commission, according to the Prime Ministers Office, did the exact opposite in failing to engage in necessary consultations with Mauritius and denying the country an opportunity to provide any explanation or make any representations prior to its inclusion on the list.

The present article purports to assess the situation from a procedural point of view while setting out the options available to Mauritius in response to the European Commissions decision.

Mauritius has stated clearly that it has engaged into discussions with the European institutions with a view to reconsidering the Commissions decision. It is apposite to have a look at the legal framework of the European Union and the powers and responsibilities of the European Commission to assess options.

The European Commission is the executive arm of the European Union. Among its responsibilities, the Commission proposes laws in line with the objectives of the EU treaties and designed to bring benefits to citizens, businesses and other stakeholders of the EU. The decisions of the Commission in relation to such new laws and policies have to be adopted in accordance with the procedure set out in the Treaty on the Functioning of the European Union (TFEU).

It is by way of Delegated Regulation that the European Commission sets out its latest list of high-risk third countries. The Delegated Regulation of 7 May 2020 amends Delegated Regulation (EU) 2016/1675 supplementing Directive (EU) 2015/849 (as amended in 2018) of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.

The Commission derives its powers to issue Delegated Regulations generally from Article 290 of the TFEU, reproduced below.

Article 290

1. A legislative act may delegate to the Commission the power to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of the legislative act.

The objectives, content, scope and duration of the delegation of power shall be explicitly defined in the legislative acts. The essential elements of an area shall be reserved for the legislative act and accordingly shall not be the subject of a delegation of power.

2. Legislative acts shall explicitly lay down the conditions to which the delegation is subject; these conditions may be as follows:

(a) the European Parliament or the Council may decide to revoke the delegation;(b) the delegated act may enter into force only if no objection has been expressed by the European Parliament or the Council within a period set by the legislative act.

For the purposes of (a) and (b), the European Parliament shall act by a majority of its component members, and the Council by a qualified majority.

It is Article 9 of Directive 2015/849 which empowers the Commission to issue Delegated Regulations specifically to prevent the use of financial systems for the purposes of money laundering or terrorist financing, thus enabling the Commission to establish its list of high-risk third countries. The relevant extract is reproduced below:

Article 9

1. Third-country jurisdictions which have strategic deficiencies in their national AML/CFT regimes that pose significant threats to the financial system of the Union (high-risk third countries) shall be identified in order to protect the proper functioning of the internal market.

2. The Commission shall be empowered to adopt delegated acts in accordance with Article 64 in order to identify high-risk third countries, taking into account strategic deficiencies

The power to issue Delegated Regulations is subject to conditions set out in Article 64 of Directive 2015/849. Sub-paragraph 5 (reproduced below) is of particular relevance.

Article 64

5. A delegated act adopted pursuant to Article 9 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

The Delegated Regulation of 7 May 2020 is therefore not final inasmuch as it will only come into effect if there is no objection expressed by the Council of the EU or the European Parliament. The difficulty is that such an objection should come within one month of its notification to the Council or Parliament. If we were to assume that the Delegated Regulation was notified to the Council or Parliament on the date of its publication, that is 7 May 2020, then this delay expires on 7 June 2020 pursuant to Article 64 (5) of the Directive 2015/849, unless extended at the initiative of the European Parliament or Council.

Time is therefore of the essence and, as pointed out in its Communique, Mauritius has embarked on an extensive diplomatic and lobbying campaign to this effect.

Although the legal route would not be a preferred option for any country having to deal with such a matter, Article 263 (4) of the TFEU offers a possible alternative should diplomatic efforts remain in vain.

Article 263

(ex Article 230 TEC)

Any natural or legal person may, under the conditions laid down in the first and second paragraphs, institute proceedings against an act addressed to that person or which is of direct and individual concern to them, and against a regulatory act which is of direct concern to them and does not entail implementing measures.

The proceedings provided for in this Article shall be instituted within two months of the publication of the measure, or of its notification to the plaintiff, or, in the absence thereof, of the day on which it came to the knowledge of the latter, as the case may be.

EU case law suggests that the following may apply for annulment under Article 263 (4): individuals, companies, trade associations, third party states, public bodies of member states.

On the issue of admissibility, only the following may be the subject matter of an application under Article 263 (4):

Inasmuch as the Delegated Regulation of 7 May 2020 is not directly addressed to Mauritius but to members of the EU, and that, further, it requires EU member states to adopt implementing measures in relation to the third countries identified as high risk therein, Mauritius can contemplate relief under Article 263 (4) on the ground that the said Delegated Regulation is of direct and/or individual concern to the country. (Vide Microban International and Microban (Europe) v. European Commission 2011 T-262/10)

The government is sparing no effort to convince the EU that Mauritius, as a jurisdiction of choice and substance, has been wronged by its inclusion in the list of third countries posing a threat to the financial system of the EU. While legal recourse might not be envisaged at this stage by the Mauritian authorities, the government as well as all stakeholders in the financial services sector in Mauritius remain hopeful of a favourable outcome following the confirmation of ongoing discussions with the EU.

View post:
EU Listing: What is the possible recourse for Mauritius? - JD Supra