Ministerio de Relaciones Exteriores ‘THE EMBASSY OF ECUADOR TO INDIA y Movilidad Humana New Delhi, 18” August, 2016 Dr. R. Vaidyanathan Professor of Finance & Control Indian Institute of Management Bannerghatta Road Bangalore -560076 Dear Dr. Vaidyanathan, On the night of 14” July 2016, the President of the Republic of Ecuador, Mr. Rafael Correa Delgado, while addressing nation televised on national channel made a reference to his proposal on tax havens. Our President, proposed an ethical pact to political actors and powers in the country, based on the complete refusal of candidature to the any dignified chair or assumption of any public post by any person who possesses property or capitals in offshore tax havens. He also gave an eventual call for a referendum on this matter, according to the following terms. "Do you agree that in order to contest an election to hold any dignified popular public portfolio or to be a public servant, it should be established as prohibition to have capital or property, of any nature, in tax havens?” Once its constitutionality approved by the Constitutional Court, the bill in question would be put for public poll, and would enter into force one year after its eventual approval This limitation would not affect the nominations for the upcoming presidential and legislative elections in February 2017, given that, those who are elected would have one year to comply with the popular decision, and give up properties or assets which they have stored in tax havens. The Head of State presented a strong argument, of an ethical and political nature, pointing to the threat this phenomenon poses to democracy by the way that deepens the differences and social divisions, as well as its immoral character. The peoples of the underdeveloped countries are those that are most affected, since by this means abundant resources that could be allocated to social cohesion and to overcome economic backwardness are subtracted, Ecuador will keep its unbendable commitment to denounce and combat this scourge that harms both our economies and societies. On past 29” June 2016, the Decolonization Committee of the United Nations approved our initiative to condemn the use of non autonomous territories by colonial powers under their administration as tax havens. E-3/2, Vasant Vihar, New Delhi - 110 057 . ‘Tel: 91 11 26152264/26152265, Fax No 26152853 E-mail eecuindia@mmrree.gob.ecH Ministerio de Relaciones Exteriores y Movilidad Humana THE EMBASSY OF ECUADOR TO INDIA We have announced our intention to work so that this issue can be included on the agenda of the 71 Regular General Assembly Session of the United Nations, | am aware of your commitment to combat corruption in all its forms and formats, such as black money, tax evasion, tax haven etc. The Goverment of Ecuador is seeking support from all national Governments and imminent non-governmental actors. as Your Goodself. Henceforth, | would most greatly appreciate your valuable moral support to this initiative of the Government of Ecuador. | would also highly appreciate if you could kindly provide valuable inputs and suggestions on this matter in order to transmit them to the Government of Ecuador. | take this opportunity to express to Your Goodself the assurances of my highest consideration Sincerely, Mentor Villagamez, Ambassador of Ecuatfor to India E-3/2, Vasant Vihar, New Delhi - 110 057 Tel: 91 11 26152264/26152265, Fax No 26152853 E-mail eecuindia@mmrree.gob.ec