Kirchner Extends Nationalization Threat to Other Groups like “Telecommunications Companies and Banks”

Kirchner Extends Nationalization Threat to Other Groups like “Telecommunications Companies and Banks”
Spanish firms are engaged in a wide array of enterprises in Argentina
El País: Kirchner extiende su amenaza a otros grupos como “telefónicas o bancos”
David Fernández reporting from Madrid April 16, 2012

The expropriation of YPF could be only the beginning of a nightmare for Spanish businesses. During her announcement of the nationalization, Argentinean President Cristina Fernández de Kirchner threw down the gauntlet before other foreign business interests in the country, like “telecommunications companies and banks”, about the “necessity” of reinvesting their earnings in Argentina.

After speaking about Argentina Airlines and its disappearance, the president moved on to comment on other sectors in which Spain has investments in Argentina. “We’ve made it clear that the businesses that are here, even if their stockholders are abroad, are Argentinean businesses,” she began. She referred to “telecommunications companies, some of which are Spanish and which have recently submitted us to blackouts. I hope that the Ministry will promptly respond to this,” she charged, clearly referring to Movistar. “And the foreign banks, as well…in sum, we don’t have a problem with profitability, but these profits must be reinvested in the country in order to help the country grow,” Fernández resolved.

The internationalization of Spanish businesses began in Latin America, and Buenos Aires was one of the first ports of call for these then-incipient multinational corporations. In recent years, the importance of Argentina on the bottom lines of these sought-after businesses has decreased in favor of other economies in the region (principally Brazil, Mexico, and Chile), but the Argentinean market continues to be a net contributor. This is the exposure that the principal Spanish companies have to Argentina, according to fiscal 2011 data.

Repsol: YPF provided 17.42% of operating revenues (~€11,105,000,000) and 25.61% of gross profit (~€1,231,000,000). Last year, Argentina received more of Repsol’s investment money than any other country (€2,182,000,000, 33% of the total). There are 15,119 Argentineans on Repsol’s payroll, 32% of the total, making them the second most numerous nationality on their staff after Spaniards.

Telefónica: Kirchner, without referring explicitly to the Spanish operator, has sent a message to Telefónica in reminding them of the “blackout” that some enterprises “have submitted us to recently”. This April 2, a breakdown in Telefónica’s Argentinean affiliate’s mobile phone service affected 16 million users and a smaller number of landline users. After the blackout, the Argentinean government signaled that it would study how to impose the “maximum” fine possible on Movistar, which indicated its intention to compensate its clients in the country for the blackout.

Telefónica of Argentina has licenses which permit it to provide landline, cellular, and Internet telephone services. These licenses will not expire, but as the operator recognizes in its annual report, “they can be cancelled by SECOM (the Secretary of Communications) for failure to complete the terms of the license”.

Telefónica has 21.9 million clients in Argentina, principally for its mobile phones (15.9 million users); it enjoys a 29.8% market share in the cellular market. The net total of the bills for this division in that country last year was ~€3,174,000,000, while its Operating Income Before Depreciation And Amortization (OIBDA) reached ~€1,085,000,000. Telefónica’s Capital Expenditure (CAPEX) in Argentina in 2011 was €449 million.

Banco Santander: Santander Río is the country’s principal private bank, with 358 offices, 2.5 million individual clients, and 6,777 employees. In 2011, the affiliate had gross earnings of €926 million, net earnings of €472 million, and €287 million in profits. Argentina contributes 3% of the Santander Group’s profits.

BBVA: The entity controls 76% of the capital of BBVA Banco Francés. In 2011, the Argentinean division earned a net profit of €315 million and an attributed profit of €157 million, a quantity which represents 5.2% of the group’s total profits. BBVA has 4,844 employees in Argentina, 4.4% of its total employees.

Endesa: The services of the generation and transportation of electricity provided by Endesa’s Argentinean affiliate netted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of €118 million in 2011. In addition, since the beginning of April last year, two interconnecting lines between Brazil and Argentina have begun to receive regulated remuneration, producing an EBIDTA of €127 million. The distribution business, for its part, had operating losses of €23 million, as greater fixed costs as a consequence of inflationary recovery in the country could not be recuperated by the bills charged to clients.

Gas Natural: The distribution of gas in Latin America earned the company an EBITDA of €621 million in 2011. Brazil, Colombia, and Mexico are Gas Natural’s principal markets; Argentina only contributed €27 million of its EBITDA.

Mapfre: Argentina is the insurer’s fourth most important market in Latin America. In 2011, it contributed €457 million in premiums (2.33% of the insurer’s total) and €18 million to Mapfre’s bottom line.

DIA: The distributor sold a total of €11,123,000,000 in products last year. Its principal markets are Spain, Portugal, and Brazil. Argentina is fourth, although it was the fastest-growing market in 2011, contributing 7.8% of the chain’s sales (€868 million). DIA opened 47 new stores last year for a total of 495 there.

Prosegur: The security company grossed some €500 million in the Argentinean Area, which also includes Paraguay and Uruguay, in 2011.

Codere: Codere Argentina is the principal operator of bingo sales in the province of Buenos Aires, with a total of 14 functioning rooms and more than 5000 recreational machines installed. This South American country contributes more to the group’s revenue and EBITDA than any other, €553 million and €165 million respectively.

NH Hoteles: On December 31, the group had 13 hotels open in Argentina (11 owned and 2 others under management) with a total of 2049 rooms.

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2 Comments on “Kirchner Extends Nationalization Threat to Other Groups like “Telecommunications Companies and Banks””

  1. Juan Alberto Says:

    La policía federal en Río recogió las facturas y los bloques de Talonarios en ambas cámaras del Jockey Club Brasileño y en las oficinas de la empresa Codere Entertainment Ltda. de Brasil., Que proporciona servicio al club en la zona de césped. La policía investiga la formación de lodo con la colocación de las apuestas y los pagos de las primas no se cuentan. La operación se realizó en la mañana del miércoles (11).

    Según los investigadores, hay sospechas de que el Jockey y Codere han hecho maniobras fiscales para evadir el pago de los impuestos y la policía fiscal, con la posible enviar dinero al extranjero. Los crímenes son investigados por evasión de impuestos, la evasión fiscal y lavado de dinero, con penas de hasta 15 años de prisión.

    “Los pasos eran muy serviciales. Ahora, todo el material será objeto de un extenso análisis por agentes de policía federales y auditores del IRS”, dijo el delegado Víctor Poubel, jefe de la Aplicación de la Policía de Delitos Financieros (Delefin). Dijo que los responsables del Jockey y la empresa debe ser llamado a testificar.

    Acompañado por los auditores del IRS, la policía Delefin cumplían tres órdenes de búsqueda y captura, dictadas por la Comisión Federal Penal tercero: dos en la sede del Jockey Club Brasileño (Gávea y Centro) y uno en las salas de Codere que trabajan en el Jockey, en Topsail. Los agentes de la izquierda de la Gávea a las 12:15. La operación, llamada el Gran Premio, con 20 oficiales y tres ingresos por impuestos federales.

    Según las investigaciones, Codere adinistraria todas las apuestas, y el total de lo recaudado, una parte sería para la empresa y otro para el Jockey. Pero la policía sospecha que Codere ha emitido una serie de facturas por servicios que nunca fueron prestados. Hay sospechas de que de esta manera, este dinero sería enviado “lavado” hacia el exterior.

    El Codere Codere es una filial de S / A, una empresa multinacional de origen español. En su sitio web oficial, las notas de empresa que opera el bingo en Argentina, Colombia, España, Italia y México, así como los casinos en Panamá y Colombia.
     
     
    Google : “codere PF”

  2. Juan Alberto Says:

    GOOGLE  – codere jockey
    PF leaves headquarters of the Jockey Club in Rio in action against tax evasion
    11/04/2012 Updated 11/04/2012 13h21-13h37
    Company that provides service to the club is also investigated.
    Action also fighting tax evasion and money laundering.

    The Federal Police of Rio left the headquarters of the Jockey Club of Brazil, in Gávea, South Zone of Rio, at 12:15 pm this Wednesday (11). Teams of Police Financial Crimes Enforcement and Public Resources Deviations sought to fulfill search and seizure warrants at the headquarters of the Jockey and Entertainment company Codere of Brazil Ltda, which provides service to the club in the area of ​​turf. Sought by G1, the advice of PF reported that an account of the action must be published in the late afternoon.

    The aim of the operation, dubbed by PF Grand Prix, is to collect the documents proving the alleged crimes of tax evasion, tax evasion and money laundering. The operation also had the support of the IRS.

    Wanted by the team of G1, Codere’s lawyer, Paul Davis, claimed that at no time the company was sued by the Federal Police to submit invoices or contract for services.

    “Codere’s relationship with the Jockey Club of Brazil is a formal relationship to provide services under a contract. The company is surprised by this measure. We did not expect something like that. Today I am forwarding a petition stating that the company is ready to submit any invoice or contract requested by the Federal Police, “said the lawyer, noting that the company provides service in the area of ​​the turf world

    Federal Police investigates second box in the Jockey horse betting River
    11/04/2012 Updated 11/04/2012 17h31-19h54

    Documents are captured in operation on two campuses of the entity.
    Agents investigating tax evasion, tax evasion and money laundering.
    Federal Police leaving the headquarters of Jockey Club
    Brazil (Photo: Janaina Carvalho/G1)

    Federal police in Rio picked up invoices and talonários blocks in both houses of the Brazilian Jockey Club and offices of the company Codere Entertainment Ltda of Brazil., Which provides service to the club in the area of ​​turf. The police investigate the formation of slush with the placing of bets and premium payments are not counted. The operation was performed on the morning of Wednesday (11).
    According to researchers, there are suspicions that the Jockey and Codere have made fiscal maneuvers to evade the payment of taxes and the tax police, with the possible remit money abroad. The crimes are investigated for tax evasion, tax evasion and money laundering, with penalties of up to 15 years in prison.
    “The steps were very helpful. Now, all material will be the subject of extensive analysis by federal police officers and auditors of the IRS,” said Delegate Victor Poubel, head of the Police Financial Crimes Enforcement (Delefin). He said those responsible for the Jockey and the company should be called to testify.
    Accompanied by auditors of the IRS, police Delefin were serving three search warrants and seizure, enacted by the 3rd Criminal Federal: two in the seat of the Brazilian Jockey Club (Gávea and Center) and one in the rooms of Codere that work within the Jockey, in Topsail. The agents left the Gávea at 12:15. The operation, dubbed the Grand Prix, had 20 officers and three federal tax Revenue.
    According to investigations, Codere adinistraria all bets, and the total collected, one party would be for the company and one for the Jockey. But the police suspect that Codere has broadcast a series of invoices for services that were never rendered. There are suspicions that this way, this money would be sent “washed” to the outside.

    The Codere Codere is a subsidiary of S / A, a multinational company of Spanish origin. On her official website, the firm notes that operates bingo in Argentina, Colombia, Spain, Italy and Mexico, as well as casinos in Panama and Colombia.
    Jockey company and deny
    In a statement, the Brazilian Jockey Club said it “did not commit any irregularity accounting, tax or other in their relationship with Codere Entertainment Ltda of Brazil. On the modality of international simulcasting betting on horse racing abroad.”
    According to the Jockey, the contract was signed with Codere in 2005, the previous administration, but was mandito by the current administration, who “kept the tax and accounting procedure previously adopted and made no transfer, credit, deposit or payment in favor of Codere “. The Brazilian Jockey Club reported that all documentation relating to the contract with Codere was referred to court voluntarily. The Jockey attributed to the charges “politically motivated a small group of opposition members” and said he is ready to collaborate with the investigations.
    The Codere said it is “under control of national authorities in seven countries and has hundreds of licenses for regulated activities in full force.” According to the company, “all operations meet international legal standards and regulatory and, in particular Brazil, and standards for its fiscal activity”
    The Codere also said that all taxes were paid and received no notice to produce documents. The company repudiated what sorts of “baseless charges” and also said to be available to authorities to provide information
     


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