13 p open letter toocal governments

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LOCAL GOVERNMENT FINANCING BY GLOBAL CAPITAL COOPERATORS

LOCAL GOVERNMENT PRIVATE FINANCING

BY

ABDEL DIMAPUNONG

SEPTEMBER 16, 2014

OPEN LETTER FOR HEADS OF PHILIPPINE LOCAL GOVERNMENT UNITS

FROM THE GLOBAL CAPITAL COOPERATORS

SUBJECT: LOCAL GOVERNMENT PRIVATE FINANCING

CONTENTS:

1. THE OPEN LETTER 2. OUR COVER PAGE 3. SAMPLE OFFERING OF ARABIAN FUNDED PRIVATE LOAN PACKAGE TO LOCAL GOVERNMENTS UNITS 4. ABOUT GLOBAL CAPITAL COOPERATORS, IN A NUTSHELL 5. ABOUT THE FINANCING DEVELOPER. IN A NUTSHELL 6. ANNEX A TITLE IV OF THE LOCAL GOVERNMENT CODE OF 1991 7. ANNEX B THE RELEVANT REQUIIREMENTS OF THE BANKO SENTRAL NG PILIPINAS 8. ANNEX C – THE LENDERS’ REQUIRED FINANCIAL PLAN 9. ANNEX D- THE LENDERS’ REQUIRED BUSINESS PLAN

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SEPTEMBER 16, 2014 THE HONORABLE HEADS OF LOCAL GOVERNMENTS THE LOCAL GOVERNMENT CODE OF1991 IS BEING PLANNED FOR AMENDMENT SOON UNDER THE BILL OF SENATOR KOKO PIMENTEL IN HIS OPENING STATEMENT IN THE HEARING ON THE MAKATI PARKING BUILDING, PIMENTEL MENTIONED THIS BILL CONCERNING THE LOCAL GOVERNMENT UNITS WHERE HE INDICATED THE FORTHCOMING INCREASES OF INTERNAL REVENUE ALLOCATIONS TO LOCAL GOVERNMENT UNITS. HE ALSO MENTIONED ABOUT LOCAL GOVERNMENT FINANCING, LOCAL GOVERNMENT BUDGETING, LOCAL GOVERNMENT PROCUREMENT, AND LOCAL GOVERNMENT AUDITING

WE ARE PLEASE TO HEAR THIS DEVELOPMENT BECAUSE WE HAVE SOME LEGISLATIVE SUGGESTIONS RELATING TO NEW CITIES AND NEW LOCAL GOVERNMENT UNITS THAT ARE SOON TO BE LARGER THAN THEIR PREVIOUS STATUS THIS IS GOOD NEWS FOR LOCAL GOVBRRNMENTS CONSEQUENT TO THE EVER INCREASING POPULATION AND THE PLANNED INCREASING REVENUES UNDER THE SOON TO BE AMENDED NEW LOCAL GOVERNMENT LAWS AND CONSIDERING SOME CHANGES IN WORLD ENVIRONMENTAL CONDITIONS AS WELL AS ADVANCES IN NEW TECHNOLOGIES,WE SHOULD SUGGEST THAT THE EXISTING HIGHLY URBANIZED CITIES WILL NOW BE UPDATED TO A HIGHER LEVEL AND NAME THEM METRO CITIES OR MEGA CITIES. ALL THE THE HIGHER POPULATED CITIES BE RECLASSIFIED AS : STAR CITIES, METRO CITIES AND MEGA CITIES – INSTEAD OF BEING CLASSIFIED IN ALPHABETICAL ORDER. THIS IS IN CONSIDERATION OF FOREIGN INVESTORS THAT REGULARLY GIVE CREDIT RANKINGS TO CITIES AS BASIS FOR THE AMOUNT OF THEIR INVESTMENTS AND AS BASIS OF THE TERMS AND CONDITIONS INCLUDING THE AMOUNT OF PHILANTROPIST ENDOWMENTS THAT FOREIGN LOANS AND INVESTMENTS MAY CONTAIN. THE NEW RECLASSIFIED CITIES SHOULD BE DEFINED IN THE AMENDED LAW AS A METROPOLIS THAT BEAR HISTORICAL AND ECONOMIC SIGNIFICANCE.

FOR EXAMPLE, FROM BEING HIGHLY URBANIZED CITIES T HE NEW METROCITIES WOULD BE QUEZON METROCITY, MANILA METROCITY, MAKATI METRO CITY, CEBU METRO CITY, TACLOBAN METRO CITY AND DAVAO METRO CITY ANOTHER EXAMPLE WOULD BE: STA ROSA STARCITY, STA. BARBARA STAR CITY, ETC… WE ARE ALSO PLEASE TO INFORM THAT WE HAD EARLIER FORMULATED A CONFIGURATION OF OUR VERSION OF LOCAL GOVERNMENT FINANCING. THIS VERSION IS PRIVATE AND ARABIAN FUNDED LOCAL GOVERNMENT FINANCING BASED ON THE EXISTING PROVISIONS OF THE LOCAL GOVERNMENT CODE, PARTICULAYLY ON CREDIT FINANCING UNDER TITLE IV THEREOF [ANNEX A]. OUR VERSION ALSO CONSIDERED THE PROVISIONS OF THE BSP RULES AND REGULATIONS ON FOREIGN EXCHANGE AS THEY APPLY TO LOCAL GOVERNMENT UNITS, PARTICULARLY SECTIONS 23 and 25 THEREOF [ ANNEX B ]. AND THE LENDERS REQUIRED FINANCIAL PLAN [ANNEX C] SHOWING PROJECTED PROFORMA INCOME STATEMENTS , PROJECTED PROFORMA BALANCE SHEETS, AND EXPECTED RETURN ON INVESTMENTS IN ACCEPTABLE ROI RATES.

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FOR THE MOMENT,WE ARE ALSO FORMULATING OUR VERSION OF LOCAL GOVERNMENT BUDGETING AND LOCAL GOVERNMENT AUDITING AS THEY RELATE TO OUR LOCAL GOVERNMENT FINANCING.

FOR WHATEVER IT IS WORTH, WE ARE SENDING YOUR HONOR A COPY OF OUR VERSION OF PRIVATE AND ARABIAN FUNDED LOCAL GOVERNMENT FINANCING. YOU WILL FIND BELOW A SAMPLE OF OUR PACKAGED DEAL OFFER TO HIGHLY URBANIZED CLASS A CITIES. THIS PACKAGED DEAL IS BEING DISTRIBUTED TO SELECTED HIGHLY URBANIZED CITIES BY OUR LIAISON COORDINATORS. HOWEVER WE NOW SUSPEND THIS DISTRIBUTION FOR THE TIME BEING WHILE AWAITING FOR THE PIMENTEL BILL UNTIL IT IS PASSED INTO LAW. WHEN THE PIMENTEL BILL BECOMES A LAW, WE SHALL MAKE ADJUSTMENTS IN OUR VERSION OF LOCAL GOVERNMENT FINANCING IN ORDER TO REALIGN OUR PARAMETERS TO THAT A NEW AMEDNDED LOCAL GOVERNMENT CODE. FYI, FOR YOUR INFORMASTION

THANK YOU AND VERY TRULY YOURS

ABDEL DIMAPUNONG MANAGING DIRECTOR

GLOBAL MUSLIM CAPITAL [email protected]

[email protected] 0928-5525-036 0947-4988-151

mailto:[email protected]


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OUR COVER

OUR COVER SHOWS THE ARABIAN REGION, ALSO KNOWN AS THE PERSIAN GULF IT IS WITHIN THE ARABIAN REGION THAT WE, THE GLOBAL CAPITAL COOPERATORS, SOURCE OUR CAPITAL FUNDING.

AS CAN BE SEEN FROM THE REGIONAL MAP OUR SOURCES OF FUNDS INCLUDE THE KINGDOM OF SAUDI ARABIA. DUBAI AND ABU DHABI OF THE UNITED ARAB EMIRATES, KUWAIT, BAHRAIN AND THE SULTANATE OF OMAN. IT IS SIGNIFICANT TO NOTE

THAT ALL OF THESE ARABIAN COUNTRIES ARE ALL MAJOR OIL PRODUCING COUNTRIES, MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTIES [OPEC], MEMBERS OF THE INTERNATIONAL MONETARY FUND[IMF] AND MEMBERS OF THE

UNITED NATIONS

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DOLLAR 80 MILLION LOAN PACKAGE DEAL

FOR CLASS A LOCAL GOVERNMENT UNITS OR METROCITIES

US DOLLAR 80M LOAN CONFIGURATION PACKAGE DEAL

APPLICATION FOR CLASS A CITIES IN THE PHILIPPINES

TERM OF LOAN 1O UP TO 20 YEARS

LOAN AMOUNT USD 80 MILLION

TOTAL INTEREST RATES 7 PERCENT SIMPLE INTEREST RATE PER ANNUM

THE 80 MILLION USD SHALL BE KNOWN AS THE TRUST FUND TO BE COMPRISED OF TWO GENERAL APPROPRIATION ACCOUNTS

THE TWO GENERAL APPROPRIATION ACCOUNTS ARE AS FOLLOWS:

THE CITY GENERAL FUND USD 20 MILLION

FOR THE RELENDING FUND USD 60 MILLION

TOTAL PACKAGE FUND USD 80 MILLION

THE RELENDING APPROPRIATION ACCOUNTS ARE AS FOLLOWS:

FOR RELENDING TO OTHER LGUS USD 20 MILLION

FOR HOUSING LOANS USD 20 MILLION

FOR CITY EMPLOYEES BENEFITS USD 20 MILLION

TOTAL RELENDING APPROPRIATION USD 60 MILLION

FOR RELENDING APPROPRIATIONS USD 60 MILLION RELENDING AT 14 PERCENT INTEREST RATE

RELENDING PAYMENTS SHALL DIRECTLY ACCRUE TO THE CITY FRANCISEE

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LOAN PACKAGE DEAL

US DOLLAR 80M LOAN CONFIGURATION PACKAGE DEAL

APPLICATION FOR CLASS A LOCAL GOVERNMENT

LOAN TERM 10 OR UP TO 20 YEARS

LOAN AMOUNT USD 80 MILLION

TOTAL INTEREST RATES 6 PERCENT SIMPLE INTEREST RATE PER ANNUM

FOR RELENDING USD 60 MILLION

RELENDING INTEREST RATES 13 PERCENT INTEREST RATE PER ANNUM

GENERAL APPROPRIATION ACCOUNTS

FOR CLASS A CITY/PROVINCE USE USD 20 MILLION

FOR BARANGAYSAND MUNICIPALITIES USD 20 MILLION

FOR HOUSING LOANS TO CITY/PROVINCE RESIDENTS USD 20 MILLION

FOR EMPLOYEES LOAN ASSISTANCE BENIFITS USD 20 MILLION

TOTAL LOAN/INVESTMENTS USD 80 MILLION

FOR CITY/PROVINCIALGOVERNMENT USE, ALLOWABLE APPLICATION OF FUNDS SHALL BE AS ALLOWED BY THE LOCAL GOVERNMENT CODE AND THE BSP RULES AND REGULATIONS ON FOREIGN EXCHANGE:

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GMC HUMANITARIAN PHILANTROPIST ENDOWMENTS TO BE TAKEN FROM THE INTEREST INCOME OF GLOBAL CAPITAL COOPERATORS

AS A DEDUCTIION FROM THEIR INTEREST CHARGES

SCHOLARSHIP ENDOWMENT FUND USD 800,000 OR PESOS 4 MILLION

SENIOR CITTIZEN BENEFIT FUND USD800,000 ORPESOS 4 MILLION

TOTAL GLOBAL CAPITAL PHILANTHROPY USD 1,600,000OR PESOS 8 MILLION

ALL OF THE FOREGOING BENEFITS WILL BE SPELLED OUT IN THE FINAL DEFINITIVE AGREEMENT AND ALL SHALL BE IN ACCORDANCE WITH THE MANDATED POWER OF THE LOCAL GOVERNMENT CODE OF 1991 AND YOUR PROVINCIAL OR CITY CHARTER. THIS PROJECT HAS BEEN DESIGNED FOR YOUR POLITICAL ENDURANCE, SUSTAINABILITY, EVER-READINESS IN RISK REDUCTION, STRENGTH IN THE FACE OF PORKY CONTROVERSY, STAYING POWER, AND FOR YOUR LEGACY AS AN OUTSTANDING NOBLE POLITICAL LEADER

JOIN US NOW

WE HAVE CELLPHONES, IPOD FAXES AND PLDT DIRECT LINES

BUT PLEASE CONTACT US BY EMAIL ONLY [email protected]

IT PAYS TO BE ON RECORD ONLINE

THAT IS ACCESSIBLE ANYWHERE


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FOR MORE INFORMATION YOU MAY REQUEST BY EMAILA COPY OF MORE INFORMATION:

1. ABOUT WHAT IS THE LOAN PACKAGE DEAL 2. ABOUT THE COMPLETE PROFILE OF THE DEVELOPER 3. ABOUT WHAT IS GLOBAL CAPITAL COOPERATORS? 4. ABOUT WHAT IS LOCAL GOVERNMENT FINANCING? 5. ABOUT WHAT IS FINANCING FRANCHISE? 6. ABOUT THE MUSLIM WORLD AND THE ARABIAN OIL PRODUCING CAPITALISTS REGION? 7. ABOUT THE LENDERS’FORMAT OF THE REQUIRED FINANCIAL PLAN 8. ABOUT THE LENDERS’ FORMAT OF THE REQUIRED BUSINESS PLAN

JUST CONTACT US BY EMAIL WITH A REQUEST OF THE FOREGOING AND WE SHALL REPLY BY SENDING YOU COPIES OF YOUR REQUESTS.

THANK YOU AND VERY TRULY YOURS

ABDEL DIMAPUNONG

GLOBAL MUSLIM CAPITAL

MANAGING DIRECTOR

[email protected]

0947-4988-151


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ANNEX A

THE LOCAL GOVERNMENT CODE REPUBLIC ACT 7160

TITLE IV CREDIT FINANCING TO LOCAL GOVERNMENT UNITS

SECTIONS 295 TO SECTIONS 303 OF RA 7160

SECTION 295. SCOPE. – THIS TITLE SHALL GOVERN THE POWER OF LOCAL GOVERNMENT UNITS TO CREATE INDEBTEDNESS AND TO ENTER INTO CREDIT AND OTHER FINANCIAL TRANSACTIONS.

SECTION 296. GENERAL POLICY. – (A) IT SHALL BE THE BASIC POLICY THAT ANY LOCAL GOVERNMENT UNIT MAY CREATE INDEBTEDNESS, AND AVAIL OF CREDIT FACILITIES TO FINANCE LOCAL INFRASTRUCTURE AND OTHER SOCIO-ECONOMIC DEVELOPMENT PROJECTS IN ACCORDANCE WITH THE APPROVED LOCAL DEVELOPMENT PLAN AND PUBLIC INVESTMENT PROGRAM. (B) A LOCAL GOVERNMENT UNIT MAY AVAIL OF CREDIT LINES FROM GOVERNMENT OR PRIVATE BANKS AND LENDING INSTITUTIONS FOR THE PURPOSE OF STABILIZING LOCAL FINANCES.

SECTION 297. LOANS, CREDITS, AND OTHER FORMS OF INDEBTEDNESS OF LOCAL GOVERNMENT UNITS. –

(A) A LOCAL GOVERNMENT UNIT MAY CONTRACT LOANS, CREDITS, AND OTHER FORMS OF INDEBTEDNESS WITH ANY GOVERNMENT OR DOMESTIC PRIVATE BANK AND OTHER LENDING INSTITUTIONS TO FINANCE THE CONSTRUCTION, INSTALLATION,IMPROVEMENT, EXPANSION, OPERATION, OR MAINTENANCE OF PUBLIC FACILITIES, INFRASTRUCTURE FACILITIES, HOUSING PROJECTS, THE ACQUISITION OF REAL PROPERTY, AND THE IMPLEMENTATION OF OTHER CAPITAL INVESTMENT PROJECTS, SUBJECT TO SUCH TERMS AND CONDITIONS AS MAY BE AGREED UPON BY THE LOCAL GOVERNMENT UNIT AND THE LENDER.THE PROCEEDS FROM SUCH TRANSACTIONS

OTHER RELATED SECTIONS SECTIONS 298,299, 300,301,302 AND 303

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SECTION 298. DEFERRED-PAYMENT AND OTHER FINANCIAL SCHEMES. – SECTION 299. BONDS AND OTHER LONG-TERM SECURITIES. – SECTION 300. INTER-LOCAL GOVERNMENT LOANS, GRANTS, AND SUBSIDIES

SECTION 301

SECTION 302. FINANCING, CONSTRUCTION, MAINTENANCE, OPERATION, AND MANAGEMENT OF INFRASTRUCTURE PROJECTS BY THE PRIVATE SECTOR. SECTION 303. REMEDIES AND SANCTIONS. –

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ANNEX B

THE RELEVANT REQUIIREMENTS OF THE BANKO SENTRAL NG PILIPINAS

FROM THE BSP MANUAL OF REGULATIONS ON FOREIGN EXCHANGE TRANSACTIONS THE FOLLOWING SECTONS ARE COPIED FOR GLOBAL MUSLIM CAPITAL COOPERATORS AND ITS PROSPECTIVE BORROWERS TO

OBSERVE AND FOLLOW IN THE IMPLEMENTATION OF THE LOCAL GOVERNMENT CREDIT FINANCING

SECTION 22 GENERAL POLICY

SECTION 23 LOANS REQUIRING BSP PRIOR APPROVAL

SECTION 25 PROJECTS ELIGIBLE FOR FOREIGN FINANCING

SECTION 26 TERMS OF LOANS

SECTION 27 DRAWDOWNS/AVAILMENTS

SECTION 28 REGISTRATION OF FOREIGN LOANS

SECTION 29 SERVICING OF FOREIGN LOANS

SECTION 30 APPROVAL/REGISTRATION AND SERVICING OF GURANTEES

_____________________________________________________________________________ ANNEX C

THE LENDERS’ REQUIRED FINANCIAL PLAN

SIGNIFICANCE

THE LENDERS’ FINANCIAL PLAN IS KEY WHEN THE LGU DECIDES TO SOURCE FUNDS FROM THE LENDERS. LIKE OTHER SECTIONS

OF THE BUSINESS PLAN, THE FINANCIAL PLAN PROVES THAT THE FUND USER HAS GIVEN SERIOUS THOUGHT TO THE PROPOSED

CREDIT FINANCING PROJECT--IN THIS CASE, HOW MUCH MONEY IS NEEDED TO START AND GROW THE BUSINESS, WHERE THE

MONEY IS GOING TO COME FROM AND HOW THE BUSINESS IS GOING TO GET IT. THE FINANCIAL PLAN ALSO OUTLINES FOR

LENDERS THE TIME IT WILL TAKE FOR THE CREDIT FINANCING BUSINESS TO BECOME PROFITABLE, AND EXACTLY HOW MUCH

DEBT WILL BE ACCUMULATED ALONG THE WAY.

ELEMENTS OF THE FINANCIAL PLAN

A THE ARABIAN LENDERS’FINANCIAL PLAN FORMAT PRESENTS AN ITEMIZED LIST OF START-UP AND OPERATIONAL YEAR TO

YEAR EXPENSES, AND DISCUSSES HOW MUCH OF THE BUSINESS'S EXPENSES WILL BE FINANCED WITH DEBT AS OPPOSED TO

PROJECTED INCOME FROM THE CREDIT FINANCING SCHEME. THE PLAN PREPARES FORWARD-LOOKING FINANCIAL

STATEMENTS, INCLUDING A PROFORMA BALANCE SHEET AND PROFORMA INCOME STATEMEN FOR AT LEAST FIVE-YEAR

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PERIOD. DESCRIBE ANY AMOUNT OF PROJECTED RELENDING TO OTHER LGUS AND RELENDING TO OTHER PROJECTED

BORROWERS SUCH AS THOSE FOR HOUSING POJECTS AND FOR EMPLOYEES BENEFICVIAL LOANS. IN THE FINANCIAL PLAN FOR

A PERIOD WITHIN AT LEAST FIVE YEARS FOR . THE FINANCIAL PLAN ALSO DISCUSSES THE POTENTIAL FUNDING SOURCES. THE

FINANCIAL PLAN FOR THE LOCAL GOVERRNMENT FINANCING SHOULD FORM PART OF THE CITY LOCAL DEVELOPMENT PLAN IN

ACCORDANCE WITH THE LOCAL GOVERNMENT CODE AND THE RELATED BSP RULES AND REGULATIONS ON FOREIGN FUNDED

LOANS.

WHO PREPARES FOR THE FINANCIAL PLAN TO BE SUBMITTED TO THE ARABIAN LENDERS?

THE PREPARATION OF THE FINANCIAL PLAN SHOULD BE DONE BY THE CITY COUNCIL AS PART OF ITS CITY DEVELOPMENT PLAN

OR THE CITY COUNCIL MAY HIRE THE GLOBAL MUSLIM CAPITAL TO DO THIS SAME JOB, OR THE CITY COUNCIL MAY ENGAGE

THE PROFESSIONALCONSULTING SERRVICES OF PROFESSIONALS. IN THIS CASE, THE GLOBAL MUSLIM CAPITAL IS IN AFFILIATION

WITH PROFESSIONAL AND WELL KNOWN AUDITING FIRMS WHO ARE ALL FROM SYCIP, GORRES, VELAYO AND COMPANY.

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ABDEL DIMAPUNONG

ABOUT THE DEVELOPER, ABDEL DIMAPUNONG, IN A NUTSHELL

email addresses: [email protected]

[email protected]

ABDEL DIMAPUNONG IS PROFESSOR EMERITUS AT THE MINDANAO STATE UNIVERSITY MAIN CAMPUS IN MARAWI CITY

PROFESSOR DIMAPUNONG IS ALSO COFOUNDER OF THE INSTITUTE OF ISLAMIC,ASIAN AND ARABIC STUDIES OF THE

UNIVERSITY. DIMAPUNONG ALSO SERVED THE UNIVERSITY AS UNIVERSITY CONSULTANT AND LATER DIRECTOR OF FINANCE.

UNDER THE UNIVERSITY FACULTY DEVELOPMENT PROGRAM, DIMAPUNONG PUSHED THROUGH EXECUTIVE

DEVELOPMENTCOURSE ON UNIVERSITY ADMINISTRATION AND MASTER IN BUSINESS MANAGEMENT AT THE ASIAN INSTITUTE

OF MANAGEMENT DIMAPUNONG ALSO SERVED THE NATIONAL GOVERNMENT AS VICE PRESIDENT OF THE PHILIPPINE

VETERANS INVESTMENTS DEVELOPMENT CORPORATION AND LATER AS CHAIRMAN AND CEO OF THE AMANAH ISLAMIC BANK

DIMAPUNONG IS PRESENTLY CONSULTING ADVISOR TO A 500 BILLION US DOLLAR CASH AND GOLD DEPOSITOR IN RABOBANK

SINGAPORE, AND A CONSULTING ADVISOR TO SEVERAL HIGH NETWORTH ARABIAN BILLIONAIRES

CURRENT WORK RESUME’: INTERNATIONAL FUND TRADER MERCHANT BANKER INVESTMENT BANKER

MANAGING DIRECTOR,GLOBAL CAPITAL COOPERATORS PREVIOUS WORK RESUME

CHAIRMAN, UNITED CAPITAL FUNDERS FORMER DIRECTOR, ERA INVESTMENTS LIMITED, HONG, KONG; FORMER DIRECTOR, CTU INVESTMENTS LIMITED, HONG KONG FORMER CAPITAL ADVISOR, ARAMEX INVESTMENTS LIMITED, BVI

COMPLETE PROFILE OF ABDEL DIMAPUNONG IS AVAILABLE UPON REQUEST BY EMAIL



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