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Tuesday, July 7, 2009

Philippine embassy in Barbados?

Where is Barbados, an island? a country? a republic or what? An Inquirer news item says the Philipines is establishing diplomatic relations with Barbados. My immediate reaction is to ask why only now?
I don't think there is any trade activity between Barbados and the Philippines. So, why make Barbados such a special country to be honored an embassy by the Philippine government? I have a hunch. The company that is about to win the bid to computerize the Philippine elections is said to be based in Barbados. Note that Barbados is known to be a tax haven and companies locate there to escape taxes on income earned from foreign operations that are normally taxable by their home governments. I can see two basic issues that will haunt those responsible for allowing this Barbados-based company to paricipate in the bid to computerize the Philippine election system: firstly, why did the COMELEC allow the participation to bid by a company from a country that has no diplomatic relations with the Philippines; secondly, why is the COMELEC dealing with a company whose registration with Barbados is most likely a tax saving stratgey, considering that Barbados is not known for advances in computer technology? I don't think establishing the diplomatic relations now will cure the defect.

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