Indian Newslink Digital Edition Sept 1, 2020

16
SEPTEMBER 1, 2020
Businesslink
Government guarantee up to 80% of bank loans
Scheme to help companies
out of Covid-19 pandemic
Venkat Raman
The New Zealand government will
guarantee bank loans up to 80%
of the amount lent by commercial
banks in the latest of measures to
revive the economy.
Finance Minister Grant Robertson
announced on August 20, 2020 an expanded
version of the ‘Business Finance
Guarantee Scheme,’ under which the
maximum loan limit will increase from
$500,000 to $5 million and the term from
three years to five years.
He said that the revision to the Scheme,
which will be available up to December
31, 2020, is based on the feedback from
Finance Minister Grant Robertson
the banks, the Treasury, Reserve Bank of
New Zealand and customers.
Banks and criteria
Commercial banks participating in the
Scheme are ANZ, ASB, BNZ, Heartland
Bank, Kiwibank, SBS Bank, TSB, Bank of
China and Westpac.
The criteria for borrowing has been
extended from liquidity support/bridging
finance to enable general purpose borrowing,
including for capital investment,
businesses affected by Covid-19.
Loans under the Scheme can be used
to re-finance up to 20% of a borrower’s
existing indebtedness.
The Scheme will allow more medium-sized
companies to access loans with
revenue limits extended from $80 million
to $200 million per annum.
“The Government has put a number of
measures in place to support businesses
to invest as the economy recovers from
the impact of the global Covid-19 pandemic.
The Business Finance Guarantee
encourages banks to support their customers,
by offering an 80% Government
guarantee over the loans issued under
the scheme,” he said.
Flexibility extended
Mr Robertson said that the government
was aware that the original scheme
had a lower uptake with just $150 million
lent to 780 customers to date.
The changes should allow the banks
to be more flexible with the scheme, he
said.
“Changes needed to be made and
banks have come to the table and agreed
to the modifications. Extending what the
loans can be used for, including capital
investment, means banks can use the
scheme to help more viable businesses
respond to this 1-in-100 year shock. While
banks will still have their own lending
requirements and make their own
lending decisions, the government has
clarified that the Crown does not require
New Zealand must sign UN Anti-Corruption pledge
Suzanne Snively
Transparency International New
Zealand (TINZ) has urged and
continues to encourage government
watch dogs to keep vigilant
while the coalition Government is
spending rapidly to buffer the economic
impact of the Covid-19 lockdown on
households and business.
With the uncertainties of the virulent
pandemic – highlighted by the latest
outbreaks – watchdog roles are essential.
The right to know
More than ever, we need transparent
information while unprecedented
amounts of public money are being
spent or lent and government bonds
being issued.
The public has a right to know about
how funding requests are assessed, how
money is allocated, and demonstration
that the outcomes achieved are supporting
employment and ensuring the
vulnerable are as protected as possible
against the spread of the virus.
This transparency is important for the
prevention of corruption.
A challenge for government officials
is communicating in ways that are
transparent, not only to experts but also
to the wider public.
OAG reports released
In addition to its Covid-19 related reviews,
the Office of the Auditor-General
(OAG) recently published four reports,
all of which are available on the OAG
website:
Managing the Provincial Growth
Fund; New Zealand Transport Agency:
Maintaining state highways through
Network Outcomes Contracts; Inland
Revenue Department: Benefits management
for the Business Transformation
programme; Using information to improve
public housing services – Progress
in responding to the Auditor-General’s
recommendations
While these reviews were underway
prior to the Covid-19 lock downs,
the OAG made recommendations to
strengthen transparency, reporting, and
evaluation pertinent to the crisis.
Transparency essential
Transparency is essential to preventing
corruption. In general, the reports
show solid performance and progress
in the areas audited. They also report
the need for more transparency, both
about financial accountability and about
determining the value of outcomes.
Regarding the Provincial Growth
Fund (PGF), the impact of Covid-19 is
making it more difficult to obtain consistent
data to evaluate the effectiveness
of the Fund’s investments.
There is risk that officials will not now
be able to identify the extent to which
the $3 billion of investment represents
value for money or contributes to improved
regional and national outcomes.
As part of its multi-year examination
of the PGF, the OAG will next focus the
Cabinet decision to redirect up to $600
million from the PGF to the COVID-19
response package.
Another part of the PGF, $70 million
related to the Coalition Government’s
manifesto to commitments, was centred
on by the Auditor General as being
particularly lacking in transparency and
accountability.
UNCAC Review
He said, “In my view, in the interests
of transparency of the overall process,
it is important for the public and Parliament
to have better visibility of how all
the parts of the Fund operate.”
The Auditor General also found that
Inland Revenue needs to achieve a
significant benefit from its Business
Transformation programme between
now and 2023/24, when its monitoring
of the programme’s benefits is due to finish.
The OAG will not be able to say with
certainty that the significant investment
in the programme represents value
for money until the benefits from the
completed project are measured.
Meanwhile, the Ministry of Justice
has been coordinating New Zealand’s
South Korea on the brink of nationwide Covid-19 outbreak
Laura Bicker
South Korea, a country held up
as a model for its response to
Covid-19, is on the brink of a new
nationwide outbreak, according to
officials.
The latest outbreak of Coronavirus
cases centred around a right-wing
Presbyterian Church has spread to all 17
provinces throughout the country for the
first time.
Each day brings a new three digit
virus total.
Stepped up measures
Social distancing rules have been
stepped up. Masks are now mandatory
in Seoul. The government is also considering
whether to close schools and
businesses.
Infectious diseases experts in the
country have called on the government
to step up social distancing measures
even further, warning that “hospital beds
are quickly filling up and the medical
system is nearing its limits.”
The Korea Centres for Disease Control
and Prevention (KCDC) has admitted
that about 20% of all new cases are of
unknown origin - despite the country’s
efficient contact tracing system which
can track down around 1000 potentially
infected patients in an hour.
South Korea’s fight against Covid-19
began in February after an outbreak at
a Christian cult called the Shincheonji
Church of Jesus in the city of Daegu,
about 200 km (124 miles) south of Seoul.
Within weeks, the outbreak was under
control.
But things are different this time.
Mistrust and conspiracy theories
A majority of new cases are all close to
South Korean President Moon Jae-in (AFP Photo)
Pedestrians wearing face masks walk on a street in
Seoul on August 24, 2020 (AFP Photo)
the heavily populated capital city which
is home to more than 10 million people.
And one of the biggest concerns is that
many of the far-right worshippers who
are potentially infected believe the virus
was planted as part of a conspiracy to
close it down.
Many are refusing to be contacted, let
alone tested.
And there is also one other major
risk factor. Infected members of the
Shincheonji Church were mostly young
- in their 20s. But the current outbreak is
affecting a much older age group.
Members of the Sarang Jeil Church,
which roughly translates as “Love Comes
First,” are right-wing conservatives and
maintain that President Moon Jae-in is
a communist and a puppet of China and
North Korea.
Before the Coronavirus outbreak, they
would gather in their hundreds in the
centre of Seoul each Saturday loudly rallying
and marching past the Blue House
to denounce the South Korean leader.
One of the Church’s pastors, Lee
Hae-suk, told my colleagues at Reuters
last week - after she tested positive for the
virus - that this was a plot to “kill Sarang
Jeil Church by increasing the number of
confirmed cases.”
When asked who she thinks is behind
the “plot,” she said: “Moon Jae-in.”
Virus Terror sneaking inside
Controversial Pastor Jun Kwang-hoon
issued a statement on YouTube claiming
that he had “five different tip-offs that
there was a virus terror that sneaked
through the Sarang Jeil Church.”
Other members claimed it had
been spread by tainted bottles of hand
sanitiser.
At a press conference last week a
Church spokesperson claimed that
pro-North Korean sympathisers had
infiltrated the Church and deliberately
spread the virus.
South Korea confirms second wave of
Coronavirus
How South Korean life changed to
contain the virus
Lessons for the world from Asia’s new
virus spikes
Ten countries kept out Covid. But did
they win?
The conspiracy theories are making it
difficult for South Korea’s contact tracers.
In total, more than 875 members have
so far tested positive, but health officials
believe hundreds more could be infected
and potentially spreading Covid-19 to
others.
Church members took part in a huge
rally on August 15, 2020 in the centre of
response under the United Nations
Convention Against Corruption (UNCAC)
Review Mechanism.
The delay of over 10 years before
New Zealand finally joined the rest
of the world in ratifying UNCAC, was
explained as the cost of participating in
these regular reviews and actioning of
resultant commitments. Nobody would
have envisaged the huge benefits of
this anti-corruption mechanism for this
virulent Covid pandemic.
Signing Coalition Transparency Pledge
TINZ is advocating for New Zealand
to sign up to the UNCAC Coalition
Transparency Pledge.
This important pledge reaffirms: the
importance of transparency and public
consultation in addressing corruption.
Civil society can play a crucial role in
preventing and combatting corruption.
It can also make a contribution as an
observer of the UNCAC review, holding
briefings and public debates aimed at
successful implementation of the UNCAC
provisions.
The challenge under the current
pandemic time and resource constraints
is for the Government to make the
time to meaningfully engage with civil
society about the role and value of this
convention in protecting New Zealand.
Anti-Corruption Leadership
With the closing of the 52nd session
of Parliament, I would like to especially
Seoul along with tens of thousands of
others, most of whom were more than 50
years old.
About 200 people have now tested
positive for the virus after the rally.
The government said it had asked the
Church for a full list of members who
attended, but they did not get it. It led to
the Police asking for a search warrant on
Friday night.
They eventually raided the Church
headquarters to find a full list of members’
names to try to contact them.
Accusations denied
The Church denies these accusations.
“Sarang Jeil Church and Pastor Jun
Kwang-hoon have been compliant to
the current government’s prevention
measures. We closed the Church as soon
as there was a confirmed case. We told
all Church members to not attend Church
and to get tested for the virus,” lawyer
Kang Yeon-jae said.
But domestic media showed footage
of what they claim are Church members
shouting and swearing at contact tracers.
Meanwhile, the virus continues to
spread, including among seven police
officers who were at the August 15, 2020
rally to maintain order.
Churches across the country were
urged to hold services online on Sunday,
but Seoul city government said 17 did not
comply.
President Moon has called for penalties
for those deliberately obstructing anti-virus
measures, including those conducting
“all-out misinformation campaigns.”
The peak is yet to come
New virus cases with unknown infection
routes continue to emerge and health
officials are stepping up the warnings and
the preparation for an outbreak within
the country.
a personal guarantee on lending made
under the Business Finance Guarantee
Scheme,” he said.
Despite the government guarantee,
the participating banks will have the
discretion to grant loans under the
Scheme.
Watchlist criteria relaxed
Mr Robertson clarified that the Crown
would not require Personal Guarantee
under the Scheme.
“The Crown will pay a claim in event
of default where no personal guarantee
has been provided. The Business
Finance Guarantee Scheme supports
the provision of bank loans to viable
businesses, encouraging banks to lend
where otherwise they may not, by the
Government taking on the default risk
for the bank of up to 80% of the loan.
Borrowers are still liable and must pay
the debt back, with interest, in the usual
way,” he said.
acknowledge three parliamentarians
who have made a huge difference to
prevention of corruption in New Zealand
through building stronger integrity
systems.
As Deputy Speaker, Anne Tolley led
the development of a code of conduct
for Parliament and progressed the
Global Organisation of Parliamentarians
Against Corruption (GOPAC), achieving
significant progress in both areas.
Clare Curran showed strong
leadership with the Open Government
Partnership, which resulted in New
Zealand’s National Action Plan 3 leaping
ahead with 12 solid commitments. These
include: the School Leavers (Civics) Tool
Kit and initiatives towards a more accessible
Parliament; and a policy to ensure
the algorithms used by government
agencies meet standards that protect the
interests of New Zealanders.
Amy Adams stewarded the passage of
omni-bus anti-corruption legislation that
included extensive anti-money laundering
provisions. With this, she achieved
a unanimous vote from Parliament in
November 2015 to ratify the United
Nations Convention Against Corruption.
This now provides a form of
protection for small countries like New
Zealand from the inevitable activities of
the corrupt given the massive flows of
international funds intended to buffer
the impact of the virus.
Suzanne Snively is Chair of
Transparency International New Zealand Inc.
The above articles appeared in the August
issue of Transparency News.
KCDC Director Jeong Eun-kyeong has
said that the peak of this outbreak is yet
to come.
She pleaded with people to comply
with social distancing measures to keep
infection rates as low as possible.
“Please stay home and wear a mask
if you do go out. Please join us in this
social distancing campaign once again
so that we can continue educating our
students, supporting our local economy,
and preventing the medical system from
collapsing. And so that we keep our
patients away from danger,” she said.
Dr Ju Young-Su at the National Medical
Centre in Seoul told us that his aim was
to keep the death rate as low as possible.
His job is to allocate critical beds to
patients. He is preparing for the worst
case scenario - that the rally could have
infected more than 2000 people.
“The Korean medical teams will put
our best efforts into keeping them all
alive,” he told us.
In total, 309 people have died in South
Korea as a result of Coronavirus, one of
the lowest death tolls in the world.
This country has been well prepared.
It has a renowned test, track and trace
system.
For months health officials have
managed to stamp out small clusters and
prevent the virus from spreading.
But this latest outbreak shows just how
difficult Coronavirus can be to contain.
The case numbers are still much lower
than elsewhere in the world, but the fear
and alarm in Seoul is higher than it has
ever been.
This could prove to be South Korea’s
biggest Covid-19 test yet.
Laura Bicker is a BBC News Reporter based in
Seoul, South Korea.