MORE ON MARK JIMENEZ

2nd of two parts

I am not a fan of MJ but a portion of this interview made him win my admiration and acknowledge his brilliance.

The Business Mirror's website is back to business and the article may now be accessed online. I read the hard copy this morning. That's where I got the earlier post. Let us read what the paper directly quoted from him;

"There are a lot of revenues that are not reported, and examples are everywhere. C’mon! Let me give you an example: Instead of paying sales tax, I’d tax companies based on their production. That’s what you call measured capacity, and I told the President about this. Now it’s measured. And I have the technology. I can use radio-frequency identification on the inventories [of factories]. That’s what’s being used right now in Latin America. I can talk to Manny Pangilinan tomorrow and broadband [the computation of taxes] so all the factories will be monitored. Easily, we can increase tax collection by P1.2 trillion.

Here’s another example: the 12-percent value-added tax (VAT). All I have to do is vertically integrate through a backbone all the data that can be accessed with the press of a button. You eat a pizza and you pay a 12-percent VAT. That 12 percent is entirely paid to the government, no more, no less. That’s another P1 trillion collected. With the additional collection, we can easily quadruple the salaries of policemen, nurses and everybody else!"

Let us extract the two points, namely the use of the internet technology in:

1. Collecting taxes based on production and,
2. Collecting the EVAT.

Amidst the negative publicity against the former Congressman, I find those two proposals very interesting. To start with, I am almost sure that most people in the tax bureau do not have any idea what he is talking about. But as a somewhat internet savvy individual, I think there is a lot of substance in his suggestion.

The way I understand imagine it; one way to implement the first measure will be to electronically tag all factory machineries, vehicles and other equipments. Every time it operates, special software will calculate the amount that it produces and store it in a databank. All raw material deliveries will also be monitored through electronic tagging at the factory gates and its origins traced through invoices. The values of the raw materials will be cross referenced through import documents and traced back to the manufacturer. This process will make undervaluation, mis-declaration and other forms of technical smuggling of goods very difficult.

The entire processes will be more than enough to fill several pages of this blog but the initial stages that I have listed here should be more than enough to affect a record breaking increase in tax collections.

In regard to the 2nd proposal, all cash registers only need to be linked to the tax bureau (through the internet) and no sale will go unreported.

This process excites me for:
It can be easily implemented and will surely be effective.
It will not cost the government much (the private sector can easily finance this)
Most importantly, it will NOT BE an additional burden to the consumers. The way things are now, businesses charge the consumers with EVAT (in every transaction), do not remit all of it to the government and manage to get away with it.

Mark Jimenez’s proposal is a very good solution.

So many things are not known about Mark Jimenez and this article shows one thing about him, his experience as an IT businessman can be very valuable to the Filipinos. His ideas are ground breaking and can be very useful. Now wonder, President Clinton listens to this guy.

MARK JIMENEZ: Interesting insights regarding solutions for the Philippine Economy

*This is an installment and an update and commentary will be done after I'm done with some chores.

Mark Jimenez, a wealthy Pinoy businessman is featured in today's issue of Business Mirror. I am unable to navigate the site because of errors (I contacted the web hosting company to report the problem-- Let's see).

HE PROPOSED THAT:

1. The government install broadband applications that will automatically record the output (production) of companies. Taxes will be based on production and not on sales.-- Sounds good! He estimates that this will lead to an additional collection of PhP 1.7 trillion in collected taxes.
2. Internet technology be used to record and collect sales taxes (EVAT).-- There will be no escaping the taxes due to the government
3. Etc.

Other points and a discussion will be posted within the day.

For the meantime, comments are most welcome!!!!

PINOY STAFFERS COMPLAIN AGAINST THE BEHAVIOR OF UN's MANILA CHIEF

This reminds me of the case of a high ranking European Union diplomat teaching at the Ateneo, who was charged with sexual harassment (forced sexual solicitation) by a straight A student. The last news about the guy is that he has left the country without submitting to an investigation.

This one is something else but the magnitude of the allegations is also serious. Let me start by quoting UN's Staff Rule 101.2 (d) indicates that ‘any form of discrimination or harassment, as well as physical or verbal abuse at the workplace or in connection with work, is prohibited. Harassment in any shape or form is an affront to human dignity and international civil servants must avoid it,’

The allegations are being quoted verbatim. In the spirit of fair play. Her replies to the main dailies will also be posted in the updates. Should you, dear readers find out something related to this case, please let me know and it shall see print in this blog. For the meantime, here are the complaints against the UN Chief.

-- Most recently, she insulted and embarrassed staff in front of high ranking government officials, publicly berating them with rude language for supposedly not undertaking a task which she committed to the government without even consulting and formally informing the staff concerned.

-- Poked a staff member’s chest and forcefully slapped another’s back to emphasize a point because she is angry or frustrated.

-- Rebuffed a staff who was so happy because Mrs. Noble already signed a contract (after several weeks of the document being with the latter). When the said staff slightly touched Mrs. Noble on the shoulder and quipped that it was finally over, Mrs. Noble physically shoved her hand away and responded in a loud voice, “What are you suggesting -- that
I’m pending documents in this office…”

-- Meetings where she often raises her voice and nit-picks on managers and staff members, embarrassing and denigrating them unnecessarily. Several incidents of one-on-one meetings with staff where she raised her voice caused further intimidation and fear among them.

-- High-handed behavior with staff members, treating them with not a bit of respect. In one incident, a staff witnessed Mrs. Noble’s ordering another staff to fetch a pen under her table, which she can very well do on her own.

-- Several incidents with staff where she would nakedly point out their supposed rudeness in front of colleagues for not immediately greeting her good morning or good afternoon while she does not even observe it herself. In fact, she would rudely interrupt meetings of staff with the Deputy Resident Representative and not even apologize for the rude intrusion. There was one incident where she was not satisfied with the workshop flow and accused the UN staff in-charge of the activity of sabotaging the Office, in front of everyone.

-- Several incidents where staff were too afraid to speak or question her decisions even if such will clearly compromise the organization for fear of retaliation. Whenever staff muster enough courage to speak their minds on certain issues which clearly contravene her own, she would intimidate these staff until they give up. By her actuations, Mrs. Noble always presumes herself to be correct and no one should, therefore, question her actions. In one of the staff meeting, Mrs. Noble announced staff movements and claimed that she has informed the particular staff of his re-assignment to another unit, where he allegedly agreed on. The concerned staff responded that it was the first time that he has heard of the re-assignment.

-- Often exhibiting unnecessary frustration, rage, and intimidation if an outcome is not to her liking, accusing staff of perceived hidden motivation, imaginary errors, and incomplete staff work. She often accuses staff of hiding things from her and not providing her enough information, no matter how many briefings, briefing papers and other information materials are provided her. She does not listen to staff explanation and makes oft-repeated accusations which are baseless and untrue.

-- One incident where she almost tore a letter apart when she erased her signature in front of a staff, implying that the staff was trying to trick her into signing that document.

-- She also has the habit of throwing papers back to the persons submitting them, if she is not satisfied with such papers.

-- Recent arbitrary (and forcible) termination of two staff without due process. Further, the manner in which she handed out the decision and her ensuing instructions for its implementation, such as the terminated staff’s leaving the UN premises immediately, packing their belongings and turn-over of keys and IDs within the hour, showed how little her respect is for common decency and dignity of a human person, treating them like common criminals. Staff members who witnessed these incidents were left in shock and fear. If these could happen to high-ranking national staff in the UNDP/UN, then it can very well happen to them, or even much worse. These incidents of arbitrary termination happened in a span of only two weeks.

-- Adding insult to injury, one of them was told not to contest the decision of his termination. If he did, then Mrs. Noble said that she will have to state a reason for the termination that will tarnish his record which, in effect, would deprive him of possible UN employment opportunities in the future.

-- Several verbal threats to staff that their contracts will not be renewed if targets are not achieved or performance is not acceptable to her. She even made a threat to withhold a staff member’s salary if performance is not up to her standards.

-- Mrs. Noble’s impossible, whimsical requests and demands to be included in certain high-level meetings and conferences have led to incidents where staff had to push themselves to the limit to satisfy her. There was an incident where a staff had to stay late at night for two days just to enable her to get into an event she, for some reason, craved to be in. When everything has been arranged, she decided last minute not to go anymore, without any explanation or apologies.

-- A very grave infraction committed by Mrs. Noble was her incursion into staff privacy in communications. She had one of the staff member’s office cellphone seized, its contents downloaded, on mere unfounded accusation of a PMO staff that the staff member was spreading malicious messages about her. Mrs. Noble made no amends nor even offered an apology even when the exercise did not yield information incriminating the staff whose cellphone was seized.