0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

0DKDWPD*DQGKL
0RKDQGDV  .DUDPFKDQG  *DQGKL  ‫ޝܤܳޖ‬QGL  ‫ܳޖ‬ QGL>@
0DKƗWPƗ
+LQGXVWDQL >‫ޖ‬PR‫ܸޝ‬ԥQGD‫ޝ‬V‫ޖ‬NԥUԥPW‫ݕ‬ԥQG‫ܳޖ‬D‫ޝ‬QG‫ށ‬L@  OLVWHQ2FWREHU±
0RKDQGDV.DUDPFKDQG
-DQXDU\ZDVDQ,QGLDQ DFWLYLVWZKRZDVWKHOHDGHURIWKH,QGLDQ
*DQGKL
LQGHSHQGHQFHPRYHPHQWDJDLQVW%ULWLVKUXOH(PSOR\LQJQRQYLROHQW FLYLO
GLVREHGLHQFH*DQGKLOHG,QGLDWRLQGHSHQGHQFHDQGLQVSLUHGPRYHPHQWV
IRU  FLYLO  ULJKWV  DQG  IUHHGRP  DFURVV  WKH  ZRUOG  7KH  KRQRULILF 0DKŅWPŅ
6DQVNULWKLJKVRXOHGYHQHUDEOH>@ ±DSSOLHGWRKLPILUVWLQLQ
6RXWK$IULFD>@ ±LVQRZXVHGZRUOGZLGH,Q,QGLDKHLVDOVRFDOOHG%DSX
*XMDUDWLHQGHDUPHQWIRUIDWKHU>@ SDSD>@>@DQG*DQGKLMLDQGNQRZQ
DVWKH)DWKHURIWKH1DWLRQ>@>@

%RUQDQGUDLVHGLQD+LQGX PHUFKDQWFDVWHIDPLO\LQFRDVWDO*XMDUDW,QGLD
DQGWUDLQHGLQODZDWWKH ,QQHU7HPSOH  /RQGRQ  *DQGKL ILUVW HPSOR\HG
QRQYLROHQWFLYLOGLVREHGLHQFHDVDQH[SDWULDWHODZ\HULQ6RXWK$IULFDLQWKH
UHVLGHQW ,QGLDQ FRPPXQLW\
V VWUXJJOH IRU  FLYLO  ULJKWV $IWHU KLV UHWXUQ  WR
,QGLD  LQ    KH  VHW  DERXW  RUJDQLVLQJ  SHDVDQWV  IDUPHUV  DQG  XUEDQ
ODERXUHUV  WR  SURWHVW  DJDLQVW  H[FHVVLYH  ODQGWD[  DQG  GLVFULPLQDWLRQ
$VVXPLQJOHDGHUVKLSRIWKH,QGLDQ1DWLRQDO&RQJUHVVLQ*DQGKLOHG
QDWLRQZLGHFDPSDLJQVIRUYDULRXVVRFLDOFDXVHVDQGIRUDFKLHYLQJ6ZDUDMRU
VHOIUXOH
1DWLYHQDPH ӉӢӒӄӂӕӑұӋӉҶҡӂ
*DQGKL IDPRXVO\OHG,QGLDQV LQ FKDOOHQJLQJ WKH %ULWLVKLPSRVHGVDOW WD[ ҳӕҡӃә *XMDUDWL
ZLWKWKHNPPL'DQGL6DOW0DUFKLQDQGODWHULQFDOOLQJIRU
%RUQ 0RKDQGDV
WKH%ULWLVKWR4XLW,QGLDLQ+HZDVLPSULVRQHGIRUPDQ\\HDUVXSRQ
.DUDPFKDQG*DQGKL
PDQ\RFFDVLRQVLQERWK6RXWK$IULFDDQG,QGLD+HOLYHGPRGHVWO\LQDVHOI
2FWREHU
VXIILFLHQWUHVLGHQWLDOFRPPXQLW\DQGZRUHWKHWUDGLWLRQDO,QGLDQGKRWLDQG
*DQGKL-D\DQWL
VKDZOZRYHQZLWK\DUQKDQGVSXQRQDFKDUNKD+HDWHVLPSOHYHJHWDULDQ
3RUEDQGDU
IRRGDQGDOVRXQGHUWRRNORQJIDVWVDVDPHDQVRIERWKVHOISXULILFDWLRQDQG
3RUEDQGDU6WDWH
SROLWLFDOSURWHVW
.DWKLDZDU$JHQF\
*DQGKL
V  YLVLRQ  RI  DQ  LQGHSHQGHQW  ,QGLD  EDVHG  RQ  UHOLJLRXV  SOXUDOLVP %RPED\3UHVLGHQF\
KRZHYHUZDVFKDOOHQJHGLQWKHHDUO\VE\DQHZ0XVOLPQDWLRQDOLVP %ULWLVK,QGLD>@
ZKLFKZDVGHPDQGLQJDVHSDUDWH0XVOLPKRPHODQGFDUYHGRXWRI,QGLD>@ SUHVHQWGD\
(YHQWXDOO\LQ$XJXVW%ULWDLQJUDQWHGLQGHSHQGHQFHEXWWKH%ULWLVK *XMDUDW,QGLD
,QGLDQ(PSLUH>@ ZDVSDUWLWLRQHGLQWRWZR GRPLQLRQVD+LQGXPDMRULW\ 'LHG -DQXDU\
,QGLD  DQG  0XVOLPPDMRULW\  3DNLVWDQ>@  $V  PDQ\  GLVSODFHG  +LQGXV DJHG
0XVOLPVDQG6LNKVPDGHWKHLUZD\WRWKHLUQHZODQGVUHOLJLRXVYLROHQFH 1HZ'HOKL'HOKL
EURNH  RXW  HVSHFLDOO\  LQ  WKH  3XQMDE  DQG  %HQJDO  (VFKHZLQJ  WKH  RIILFLDO 'RPLQLRQRI,QGLD
FHOHEUDWLRQ  RI  LQGHSHQGHQFH  LQ  'HOKL  *DQGKL  YLVLWHG  WKH  DIIHFWHG  DUHDV SUHVHQWGD\,QGLD
DWWHPSWLQJWRSURYLGHVRODFH,QWKHPRQWKVIROORZLQJKHXQGHUWRRNVHYHUDO

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

IDVWVXQWRGHDWKWRVWRSUHOLJLRXVYLROHQFH7KHODVWRIWKHVHXQGHUWDNHQRQ &DXVHRI $VVDVVLQDWLRQ

-DQXDU\ZKHQKHZDV>@DOVRKDGWKHLQGLUHFWJRDORISUHVVXULQJ GHDWK
,QGLD  WR  SD\  RXW  VRPH  FDVK  DVVHWV  RZHG  WR  3DNLVWDQ>@  6RPH  ,QGLDQV
5HVWLQJ 5DM*KDW'HOKL
WKRXJKW  *DQGKL  ZDV  WRR  DFFRPPRGDWLQJ>@>@  $PRQJ  WKHP  ZDV
SODFH ,QGLD
1DWKXUDP  *RGVH  D  +LQGX  QDWLRQDOLVW  ZKR  DVVDVVLQDWHG  *DQGKL  RQ  
1DWLRQDOLW\ ,QGLDQ
-DQXDU\E\ILULQJWKUHHEXOOHWVLQWRKLVFKHVW>@ &DSWXUHGDORQJZLWK
PDQ\  RI  KLV  FRFRQVSLUDWRUV  DQG  FROODERUDWRUV  *RGVH  DQG  KLV  FR 2WKHUQDPHV 0DKDWPD*DQGKL
FRQVSLUDWRU1DUD\DQ$SWHZHUHWULHGFRQYLFWHGDQGH[HFXWHGZKLOHPDQ\RI %DSXML*DQGKLML
WKHLURWKHUDFFRPSOLFHVZHUHJLYHQSULVRQVHQWHQFHV $OPDPDWHU 8QLYHUVLW\&ROOHJH
/RQGRQ>@
*DQGKL
VELUWKGD\2FWREHULVFRPPHPRUDWHGLQ,QGLDDV*DQGKL-D\DQWL ,QQHU7HPSOH
DQDWLRQDOKROLGD\DQGZRUOGZLGHDVWKH,QWHUQDWLRQDO'D\RI1RQYLROHQFH
2FFXSDWLRQ /DZ\HUā3ROLWLFLDQā
$FWLYLVWā:ULWHU
.QRZQIRU ,QGLDQ
&RQWHQWV ,QGHSHQGHQFH
%LRJUDSK\ 0RYHPHQW
(DUO\OLIHDQGEDFNJURXQG 3HDFHPRYHPHQW
(QJOLVKEDUULVWHU 1RQYLROHQW
&LYLOULJKWVDFWLYLVWLQ6RXWK$IULFD± UHVLVWDQFH
6WUXJJOHIRU,QGLDQLQGHSHQGHQFH± &LYLOUHVLVWDQFH
&KDPSDUDQDQG.KHGD
*DQGKLVP
$VVDVVLQDWLRQ
3ROLWLFDO ,QGLDQ1DWLRQDO
3ULQFLSOHVSUDFWLFHVDQGEHOLHIV
SDUW\ &RQJUHVV
,QIOXHQFHV
2QZDUVDQGQRQYLROHQFH 0RYHPHQW ,QGLDQLQGHSHQGHQFH
2QLQWHUUHOLJLRXVUHODWLRQV PRYHPHQW
2QOLIHVRFLHW\DQGRWKHUDSSOLFDWLRQRIKLVLGHDV .DVWXUEDL*DQGKL
6SRXVHV
/LWHUDU\ZRUNV PG

/HJDF\DQGGHSLFWLRQVLQSRSXODUFXOWXUH &KLOGUHQ +DULODOā0DQLODOā

)ROORZHUVDQGLQWHUQDWLRQDOLQIOXHQFH 5DPGDVā'HYGDV
*OREDOGD\VWKDWFHOHEUDWH*DQGKL
3DUHQWV .DUDPFKDQG*DQGKL
$ZDUGV
IDWKHU
)LOPWKHDWUHDQGOLWHUDWXUH
&XUUHQWLPSDFWZLWKLQ,QGLD 3XWOLEDL*DQGKL
6HHDOVR PRWKHU

5HIHUHQFHV 6LJQDWXUH
%LEOLRJUDSK\
%RRNV
3ULPDU\VRXUFHV
([WHUQDOOLQNV

%LRJUDSK\

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

(DUO\OLIHDQGEDFNJURXQG
0RKDQGDV.DUDPFKDQG*DQGKL>@ ZDVERUQRQ2FWREHU>@ LQWRD*XMDUDWL +LQGX 0RGK %DQL\DIDPLO\>@ LQ
3RUEDQGDUDOVRNQRZQDV6XGDPDSXULDFRDVWDOWRZQRQWKH.DWKLDZDU3HQLQVXODDQGWKHQSDUWRIWKHVPDOOSULQFHO\
VWDWH  RI  3RUEDQGDU  LQ  WKH  .DWKLDZDU  $JHQF\  RI  WKH  ,QGLDQ  (PSLUH  +LV  IDWKHU  .DUDPFKDQG  8WWDPFKDQG  *DQGKL
±VHUYHGDVWKHGLZDQFKLHIPLQLVWHURI3RUEDQGDUVWDWH>@

$OWKRXJK  KH  RQO\  KDG  DQ  HOHPHQWDU\  HGXFDWLRQ  DQG  KDG  SUHYLRXVO\  EHHQ  D  FOHUN  LQ  WKH  VWDWH  DGPLQLVWUDWLRQ
.DUDPFKDQGSURYHGDFDSDEOHFKLHIPLQLVWHU>@ 'XULQJKLVWHQXUH.DUDPFKDQGPDUULHGIRXUWLPHV+LVILUVWWZR
ZLYHVGLHG\RXQJDIWHUHDFKKDGJLYHQELUWKWRDGDXJKWHUDQGKLVWKLUGPDUULDJHZDVFKLOGOHVV,Q.DUDPFKDQG
VRXJKW  KLV  WKLUG  ZLIH
V  SHUPLVVLRQ  WR  UHPDUU\  WKDW  \HDU  KH  PDUULHG  3XWOLEDL  ±  ZKR  DOVR  FDPH  IURP
-XQDJDGK>@DQGZDVIURPD3UDQDPL 9DLVKQDYDIDPLO\>@>@>@>@.DUDPFKDQGDQG3XWOLEDLKDGWKUHHFKLOGUHQRYHU
WKHHQVXLQJGHFDGHDVRQ/D[PLGDVF±DGDXJKWHU5DOLDWEHKQ±DQGDQRWKHUVRQ.DUVDQGDV
F±>@>@

2Q2FWREHU3XWOLEDLJDYHELUWKWRKHUODVWFKLOG0RKDQGDVLQDGDUNZLQGRZOHVVJURXQGIORRUURRPRIWKH
*DQGKL  IDPLO\  UHVLGHQFH  LQ  3RUEDQGDU  FLW\  $V  D  FKLOG  *DQGKL  ZDV  GHVFULEHG  E\  KLV  VLVWHU  5DOLDW  DV  UHVWOHVV  DV
PHUFXU\  HLWKHU  SOD\LQJ  RU  URDPLQJ  DERXW 2QH  RI KLV  IDYRXULWH  SDVWLPHV  ZDV  WZLVWLQJ  GRJV
 HDUV>@  7KH  ,QGLDQ
FODVVLFVHVSHFLDOO\WKHVWRULHVRI6KUDYDQDDQGNLQJ+DULVKFKDQGUDKDGDJUHDWLPSDFWRQ*DQGKLLQKLVFKLOGKRRG,Q
KLVDXWRELRJUDSK\KHDGPLWVWKDWWKH\OHIWDQLQGHOLEOHLPSUHVVLRQRQKLVPLQG+HZULWHV,WKDXQWHGPHDQG,PXVW
KDYHDFWHG+DULVKFKDQGUDWRP\VHOIWLPHVZLWKRXWQXPEHU*DQGKL
VHDUO\VHOILGHQWLILFDWLRQZLWKWUXWKDQGORYHDV
VXSUHPHYDOXHVLVWUDFHDEOHWRWKHVHHSLFFKDUDFWHUV>@>@

7KHIDPLO\
VUHOLJLRXVEDFNJURXQGZDVHFOHFWLF*DQGKL
VIDWKHU.DUDPFKDQGZDV+LQGXDQGKLVPRWKHU3XWOLEDLZDV
IURPD3UDQDPL9DLVKQDYD+LQGXIDPLO\>@>@*DQGKL
VIDWKHUZDVRI0RGK%DQL\DFDVWHLQWKHYDUQDRI9DLVK\D>@
+LV  PRWKHU  FDPH  IURP  WKH  PHGLHYDO  .ULVKQD  EKDNWLEDVHG  3UDQDPL  WUDGLWLRQ  ZKRVH  UHOLJLRXV  WH[WV  LQFOXGH  WKH
%KDJDYDG *LWD WKH  %KDJDYDWD 3XUDQD  DQG D FROOHFWLRQ  RI  WH[WV  ZLWK  WHDFKLQJV WKDW  WKH WUDGLWLRQ EHOLHYHV  WR
LQFOXGHWKHHVVHQFHRIWKH 9HGDVWKH4XUDQDQGWKH%LEOH>@>@ *DQGKLZDVGHHSO\LQIOXHQFHGE\KLVPRWKHUDQ
H[WUHPHO\SLRXVODG\ZKRZRXOGQRWWKLQNRIWDNLQJKHUPHDOVZLWKRXWKHUGDLO\SUD\HUVVKHZRXOGWDNHWKHKDUGHVW
YRZVDQGNHHSWKHPZLWKRXWIOLQFKLQJ7RNHHSWZRRUWKUHHFRQVHFXWLYHIDVWVZDVQRWKLQJWRKHU>@

,Q*DQGKL
VIDWKHU.DUDPFKDQGOHIW3RUEDQGDUIRUWKHVPDOOHUVWDWHRI5DMNRWZKHUHKHEHFDPHDFRXQVHOORUWR
LWVUXOHUWKH7KDNXU6DKLEWKRXJK5DMNRWZDVDOHVVSUHVWLJLRXVVWDWHWKDQ3RUEDQGDUWKH%ULWLVKUHJLRQDOSROLWLFDO
DJHQF\ZDVORFDWHGWKHUHZKLFKJDYHWKHVWDWH
VGLZDQDPHDVXUHRIVHFXULW\>@,Q.DUDPFKDQGEHFDPHGLZDQ
RI5DMNRWDQGZDVVXFFHHGHGDVGLZDQRI3RUEDQGDUE\KLVEURWKHU7XOVLGDV+LVIDPLO\WKHQUHMRLQHGKLPLQ5DMNRW>@

$WDJH*DQGKLHQWHUHGWKHORFDOVFKRROLQ5DMNRWQHDUKLVKRPH7KHUHKHVWXGLHGWKHUXGLPHQWVRIDULWKPHWLF
KLVWRU\WKH*XMDUDWLODQJXDJHDQGJHRJUDSK\>@$WDJHKHMRLQHGWKH+LJK6FKRROLQ5DMNRW>@+HZDVDQDYHUDJH
VWXGHQWZRQVRPHSUL]HVEXWZDVDVK\DQGWRQJXHWLHGVWXGHQWZLWKQRLQWHUHVWLQJDPHVKLVRQO\FRPSDQLRQVZHUH
ERRNVDQGVFKRROOHVVRQV>@

:KLOHDWKLJKVFKRRO*DQGKL
VHOGHUEURWKHULQWURGXFHGKLPWRD0XVOLPIULHQGQDPHG6KHLNK0HKWDE0HKWDEZDV
ROGHULQDJHWDOOHUDQGHQFRXUDJHGWKHVWULFWO\YHJHWDULDQER\WRHDWPHDWWRJDLQKHLJKW+HDOVRWRRN0RKDQGDVWRD
EURWKHORQHGD\WKRXJK0RKDQGDVZDVVWUXFNEOLQGDQGGXPELQWKLVGHQRIYLFHUHEXIIHGWKHSURVWLWXWHV
DGYDQFHV
DQGZDVSURPSWO\VHQWRXWRIWKHEURWKHO7KHH[SHULHQFHFDXVHG0RKDQGDVPHQWDODQJXLVKDQGKHDEDQGRQHGWKH
FRPSDQ\RI0HKWDE>@

,Q0D\WKH\HDUROG0RKDQGDVZDVPDUULHGWR\HDUROG.DVWXUEDL0DNKDQML.DSDGLDKHUILUVWQDPHZDV

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

XVXDOO\  VKRUWHQHG  WR  .DVWXUED  DQG  DIIHFWLRQDWHO\  WR  %D  LQ  DQ  DUUDQJHG

PDUULDJHDFFRUGLQJWRWKHFXVWRPRIWKHUHJLRQDWWKDWWLPH>@ ,QWKHSURFHVV
KHORVWD\HDUDWVFKRROEXWZDVODWHUDOORZHGWR PDNHXSE\DFFHOHUDWLQJKLV
VWXGLHV>@ +LVZHGGLQJZDVDMRLQWHYHQWZKHUHKLVEURWKHUDQGFRXVLQZHUH
DOVRPDUULHG5HFDOOLQJWKHGD\RIWKHLUPDUULDJHKHRQFHVDLG$VZHGLGQ
W
NQRZPXFKDERXWPDUULDJHIRUXVLWPHDQWRQO\ZHDULQJQHZFORWKHVHDWLQJ
VZHHWV  DQG  SOD\LQJ  ZLWK  UHODWLYHV  +RZHYHU  DV  ZDV  SUHYDLOLQJ  WUDGLWLRQ  WKH
DGROHVFHQWEULGHZDVWRVSHQGPXFKWLPHDWKHUSDUHQWV
KRXVHDQGDZD\IURP
KHUKXVEDQG>@ :ULWLQJPDQ\\HDUVODWHU0RKDQGDVGHVFULEHGZLWKUHJUHWWKH
OXVWIXOIHHOLQJVKHIHOWIRUKLV\RXQJEULGHHYHQDWVFKRRO,XVHGWRWKLQNRIKHU
DQGWKHWKRXJKWRIQLJKWIDOODQGRXUVXEVHTXHQWPHHWLQJZDVHYHUKDXQWLQJPH
+HODWHUUHFDOOHGIHHOLQJMHDORXVDQGSRVVHVVLYHRIKHUVXFKDVZKHQVKHZRXOG
YLVLWDWHPSOHZLWKKHUJLUOIULHQGVDQGEHLQJVH[XDOO\OXVWIXOLQKLVIHHOLQJVIRU
*DQGKLULJKWZLWKKLVHOGHVW
KHU>@
EURWKHU/D[PLGDVLQ>@
,QODWH*DQGKL
VIDWKHU.DUDPFKDQGGLHG>@ *DQGKLWKHQ\HDUVROG
DQGKLVZLIHRIDJHKDGWKHLUILUVWEDE\ZKRVXUYLYHGRQO\DIHZGD\V7KHWZR
GHDWKVDQJXLVKHG*DQGKL>@7KH*DQGKLFRXSOHKDGIRXUPRUHFKLOGUHQDOOVRQV+DULODOERUQLQ0DQLODOERUQ
LQ5DPGDVERUQLQDQG'HYGDVERUQLQ>@

,Q  1RYHPEHU    WKH  \HDUROG  *DQGKL  JUDGXDWHG  IURP  KLJK  VFKRRO  LQ  $KPHGDEDG>@  ,Q  -DQXDU\    KH
HQUROOHGDW6DPDOGDV&ROOHJHLQ%KDYQDJDU6WDWHWKHQWKHVROHGHJUHHJUDQWLQJLQVWLWXWLRQRIKLJKHUHGXFDWLRQLQWKH
UHJLRQ%XWKHGURSSHGRXWDQGUHWXUQHGWRKLVIDPLO\LQ3RUEDQGDU>@

(QJOLVKEDUULVWHU
*DQGKLFDPHIURPDSRRUIDPLO\DQGKHKDGGURSSHGRXWRIWKHFKHDSHVWFROOHJHKHFRXOGDIIRUG>@  0DYML  'DYH
-RVKLMLD%UDKPLQSULHVWDQGIDPLO\IULHQGDGYLVHG*DQGKLDQGKLVIDPLO\WKDWKHVKRXOGFRQVLGHUODZVWXGLHVLQ
/RQGRQ>@ ,Q-XO\KLVZLIH.DVWXUEDJDYHELUWKWRWKHLUILUVWVXUYLYLQJVRQ+DULODO>@ +LVPRWKHUZDVQRW
FRPIRUWDEOHDERXW*DQGKLOHDYLQJKLVZLIHDQGIDPLO\DQGJRLQJVRIDUIURPKRPH*DQGKL
VXQFOH7XOVLGDVDOVRWULHG
WRGLVVXDGHKLVQHSKHZ*DQGKLZDQWHGWRJR7RSHUVXDGHKLVZLIHDQGPRWKHU*DQGKLPDGHDYRZLQIURQWRIKLV
PRWKHUWKDWKHZRXOGDEVWDLQIURPPHDWDOFRKRODQGZRPHQ*DQGKL
VEURWKHU/D[PLGDVZKRZDVDOUHDG\DODZ\HU
FKHHUHG*DQGKL
V/RQGRQVWXGLHVSODQDQGRIIHUHGWRVXSSRUWKLP3XWOLEDLJDYH*DQGKLKHUSHUPLVVLRQDQGEOHVVLQJ
>@>@

2Q$XJXVW*DQGKLDJHGOHIW3RUEDQGDUIRU0XPEDLWKHQNQRZQDV%RPED\8SRQDUULYDOKHVWD\HGZLWK
WKHORFDO0RGK%DQLDFRPPXQLW\ZKLOHZDLWLQJIRUWKHVKLSWUDYHODUUDQJHPHQWV7KHKHDGRIWKHFRPPXQLW\NQHZ
*DQGKL
VIDWKHU$IWHUOHDUQLQJ*DQGKL
VSODQVKHDQGRWKHUHOGHUVZDUQHG*DQGKLWKDW(QJODQGZRXOGWHPSWKLPWR
FRPSURPLVHKLVUHOLJLRQDQGHDWDQGGULQNLQ:HVWHUQZD\V*DQGKLLQIRUPHGWKHPRIKLVSURPLVHWRKLVPRWKHUDQG
KHUEOHVVLQJV7KHORFDOFKLHIGLVUHJDUGHGLWDQGH[FRPPXQLFDWHGKLPDQRXWFDVW%XW*DQGKLLJQRUHGWKLVDQGRQ
6HSWHPEHUKHVDLOHGIURP%RPED\WR/RQGRQ+LVEURWKHUVDZKLPRII>@>@

,Q/RQGRQ*DQGKLVWXGLHGODZDQGMXULVSUXGHQFHDQGHQUROOHGDWWKH,QQHU7HPSOHZLWKWKHLQWHQWLRQRIEHFRPLQJD
EDUULVWHU+LVFKLOGKRRGVK\QHVVDQGVHOIZLWKGUDZDOKDGFRQWLQXHGWKURXJKKLVWHHQVDQGKHUHPDLQHGVRZKHQKH
DUULYHGLQ/RQGRQEXWKHMRLQHGDSXEOLFVSHDNLQJSUDFWLFHJURXSDQGRYHUFDPHWKLVKDQGLFDSWRSUDFWLVHODZ>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

+LVWLPHLQ/RQGRQZDVLQIOXHQFHGE\WKHYRZKHKDGPDGHWRKLVPRWKHU+H
WULHGWRDGRSW(QJOLVKFXVWRPVLQFOXGLQJWDNLQJGDQFLQJOHVVRQV+RZHYHUKH
FRXOGQRWDSSUHFLDWHWKHEODQGYHJHWDULDQIRRGRIIHUHGE\KLVODQGODG\DQGZDV
IUHTXHQWO\KXQJU\XQWLOKHIRXQGRQHRI/RQGRQ
VIHZYHJHWDULDQUHVWDXUDQWV
,QIOXHQFHGE\+HQU\6DOW
VZULWLQJKHMRLQHGWKH9HJHWDULDQ6RFLHW\ZDVHOHFWHG
WRLWVH[HFXWLYHFRPPLWWHH>@DQGVWDUWHGDORFDO%D\VZDWHUFKDSWHU>@6RPHRI
WKHYHJHWDULDQVKHPHWZHUHPHPEHUVRIWKH7KHRVRSKLFDO6RFLHW\ZKLFKKDG
EHHQIRXQGHGLQWRIXUWKHUXQLYHUVDOEURWKHUKRRGDQGZKLFKZDVGHYRWHG
WRWKHVWXG\RI%XGGKLVWDQG+LQGXOLWHUDWXUH7KH\HQFRXUDJHG*DQGKLWRMRLQ
WKHP  LQ  UHDGLQJ  WKH  %KDJDYDG  *LWD  ERWK  LQ  WUDQVODWLRQ  DV  ZHOO  DV  LQ  WKH
RULJLQDO>@

*DQGKLDWDJHZDVFDOOHGWRWKHEDULQ-XQHDQGWKHQOHIW/RQGRQIRU
*DQGKLLQ/RQGRQDVDODZ ,QGLDZKHUHKHOHDUQHGWKDWKLVPRWKHUKDGGLHGZKLOHKHZDVLQ/RQGRQDQG
VWXGHQW WKDWKLVIDPLO\KDGNHSWWKHQHZVIURPKLP>@+LVDWWHPSWVDWHVWDEOLVKLQJDODZ
SUDFWLFH  LQ  %RPED\  IDLOHG  EHFDXVH  KH  ZDV  SV\FKRORJLFDOO\  XQDEOH  WR  FURVV
H[DPLQHZLWQHVVHV+HUHWXUQHGWR5DMNRWWRPDNHDPRGHVWOLYLQJGUDIWLQJSHWLWLRQVIRUOLWLJDQWVEXWKHZDVIRUFHGWR
VWRSZKHQKHUDQDIRXORID%ULWLVKRIILFHU>@>@ ,QD0XVOLPPHUFKDQWLQ.DWKLDZDUQDPHG'DGD$EGXOODK
FRQWDFWHG  *DQGKL  $EGXOODK  RZQHG  D  ODUJH  VXFFHVVIXO  VKLSSLQJ  EXVLQHVV  LQ  6RXWK  $IULFD  +LV  GLVWDQW  FRXVLQ  LQ
-RKDQQHVEXUJQHHGHGDODZ\HUDQGWKH\SUHIHUUHGVRPHRQHZLWK.DWKLDZDULKHULWDJH*DQGKLLQTXLUHGDERXWKLVSD\
IRUWKHZRUN7KH\RIIHUHGDWRWDOVDODU\RI…SOXVWUDYHOH[SHQVHV+HDFFHSWHGLWNQRZLQJWKDWLWZRXOGEHDWOHDVW
RQH\HDUFRPPLWPHQWLQWKH&RORQ\RI1DWDO6RXWK$IULFDDOVRDSDUWRIWKH%ULWLVK(PSLUH>@>@

&LYLOULJKWVDFWLYLVWLQ6RXWK$IULFD±
,Q$SULO*DQGKLDJHGVHWVDLOIRU6RXWK$IULFDWREHWKHODZ\HUIRU$EGXOODK
VFRXVLQ>@>@+HVSHQW\HDUV
LQ6RXWK$IULFDZKHUHKHGHYHORSHGKLVSROLWLFDOYLHZVHWKLFVDQGSROLWLFV>@

,PPHGLDWHO\XSRQDUULYLQJLQ6RXWK$IULFD*DQGKLIDFHGGLVFULPLQDWLRQEHFDXVHRIKLVVNLQFRORXUDQGKHULWDJHOLNH
DOOSHRSOHRIFRORXU>@ +HZDVQRWDOORZHGWRVLWZLWK(XURSHDQSDVVHQJHUVLQWKHVWDJHFRDFKDQGWROGWRVLWRQWKH
IORRUQHDUWKHGULYHUWKHQEHDWHQZKHQKHUHIXVHGHOVHZKHUHKHZDVNLFNHGLQWRDJXWWHUIRUGDULQJWRZDONQHDUD
KRXVHLQDQRWKHULQVWDQFHWKURZQRIIDWUDLQDW3LHWHUPDULW]EXUJDIWHUUHIXVLQJWROHDYHWKHILUVWFODVV>@>@+HVDWLQ
WKHWUDLQVWDWLRQVKLYHULQJDOOQLJKWDQGSRQGHULQJLIKHVKRXOGUHWXUQWR,QGLDRUSURWHVWIRUKLVULJKWV>@+HFKRVHWR
SURWHVWDQGZDVDOORZHGWRERDUGWKHWUDLQWKHQH[WGD\>@ ,QDQRWKHULQFLGHQWWKHPDJLVWUDWHRID'XUEDQ  FRXUW
RUGHUHG*DQGKLWRUHPRYHKLVWXUEDQZKLFKKHUHIXVHGWRGR>@,QGLDQVZHUHQRWDOORZHGWRZDONRQSXEOLFIRRWSDWKV
LQ6RXWK$IULFD*DQGKLZDVNLFNHGE\DSROLFHRIILFHURXWRIWKHIRRWSDWKRQWRWKHVWUHHWZLWKRXWZDUQLQJ>@

:KHQ*DQGKLDUULYHGLQ6RXWK$IULFDDFFRUGLQJWR+HUPDQKHWKRXJKWRIKLPVHOIDVD%ULWRQILUVWDQGDQ,QGLDQ
VHFRQG>@ +RZHYHUWKHSUHMXGLFHDJDLQVWKLPDQGKLVIHOORZ,QGLDQVIURP%ULWLVKSHRSOHWKDW*DQGKLH[SHULHQFHG
DQG  REVHUYHG  GHHSO\  ERWKHUHG  KLP  +H  IRXQG  LW KXPLOLDWLQJ  VWUXJJOLQJ  WR  XQGHUVWDQG  KRZ  VRPH  SHRSOH  FDQ  IHHO
KRQRXURUVXSHULRULW\RUSOHDVXUHLQVXFKLQKXPDQHSUDFWLFHV>@*DQGKLEHJDQWRTXHVWLRQKLVSHRSOH
VVWDQGLQJLQWKH
%ULWLVK(PSLUH>@

7KH$EGXOODKFDVHWKDWKDGEURXJKWKLPWR6RXWK$IULFDFRQFOXGHGLQ0D\DQGWKH,QGLDQFRPPXQLW\RUJDQLVHG
DIDUHZHOOSDUW\IRU*DQGKLDVKHSUHSDUHGWRUHWXUQWR,QGLD>@ +RZHYHUDQHZ1DWDOJRYHUQPHQWGLVFULPLQDWRU\
SURSRVDOOHGWR*DQGKLH[WHQGLQJKLVRULJLQDOSHULRGRIVWD\LQ6RXWK$IULFD+HSODQQHGWRDVVLVW,QGLDQVLQRSSRVLQJD

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

ELOO  WR  GHQ\  WKHP  WKH  ULJKW  WR  YRWH  D  ULJKW  WKHQ  SURSRVHG  WR  EH  DQ  H[FOXVLYH  (XURSHDQ  ULJKW  +H  DVNHG  -RVHSK
&KDPEHUODLQWKH%ULWLVK&RORQLDO6HFUHWDU\WRUHFRQVLGHUKLVSRVLWLRQRQWKLVELOO>@7KRXJKXQDEOHWRKDOWWKHELOO
V
SDVVDJHKLVFDPSDLJQZDVVXFFHVVIXOLQGUDZLQJDWWHQWLRQWRWKHJULHYDQFHVRI,QGLDQVLQ6RXWK$IULFD+HKHOSHG
IRXQGWKH1DWDO,QGLDQ&RQJUHVVLQ>@>@ DQGWKURXJKWKLVRUJDQLVDWLRQKHPRXOGHGWKH,QGLDQFRPPXQLW\RI
6RXWK$IULFDLQWRDXQLILHGSROLWLFDOIRUFH,Q-DQXDU\ZKHQ*DQGKLODQGHGLQ'XUEDQDPRERIZKLWHVHWWOHUV
DWWDFNHGKLP>@DQGKHHVFDSHGRQO\WKURXJKWKHHIIRUWVRIWKHZLIHRIWKHSROLFHVXSHULQWHQGHQW+RZHYHUKHUHIXVHG
WRSUHVVFKDUJHVDJDLQVWDQ\PHPEHURIWKHPRE>@

'XULQJ  WKH  %RHU  :DU  *DQGKL  YROXQWHHUHG  LQ    WR  IRUP  D  JURXS  RI

VWUHWFKHUEHDUHUV  DV  WKH  1DWDO  ,QGLDQ  $PEXODQFH  &RUSV  $FFRUGLQJ  WR
$UWKXU+HUPDQ*DQGKLZDQWHGWRGLVSURYHWKHLPSHULDO%ULWLVKVWHUHRW\SH
WKDW  +LQGXV  ZHUH  QRW  ILW  IRU  PDQO\  DFWLYLWLHV  LQYROYLQJ  GDQJHU  DQG
H[HUWLRQ  XQOLNH  WKH  0XVOLP  PDUWLDO  UDFHV>@  *DQGKL  UDLVHG  HOHYHQ
KXQGUHG,QGLDQYROXQWHHUVWRVXSSRUW%ULWLVKFRPEDWWURRSVDJDLQVWWKH
%RHUV7KH\ZHUHWUDLQHGDQGPHGLFDOO\FHUWLILHGWRVHUYHRQWKHIURQWOLQHV
*DQGKLZLWKWKHVWUHWFKHUEHDUHUVRI 7KH\  ZHUH  DX[LOLDULHV  DW  WKH  %DWWOH  RI  &ROHQVR  WR  D  :KLWH  YROXQWHHU
WKH,QGLDQ$PEXODQFH&RUSV
DPEXODQFHFRUSVWKHQDW6SLRQ.RS*DQGKLDQGKLVEHDUHUVPRYHGWRWKH
IURQWOLQHDQGKDGWRFDUU\ZRXQGHGVROGLHUVIRUPLOHVWRDILHOGKRVSLWDO
EHFDXVHWKHWHUUDLQZDVWRRURXJKIRUWKHDPEXODQFHV*DQGKLDQGWKLUW\VHYHQRWKHU,QGLDQVUHFHLYHGWKH4XHHQ
V
6RXWK$IULFD0HGDO>@

,Q    WKH  7UDQVYDDO  JRYHUQPHQW  SURPXOJDWHG  D  QHZ  $FW  FRPSHOOLQJ

UHJLVWUDWLRQ  RI  WKH  FRORQ\
V  ,QGLDQ  DQG  &KLQHVH  SRSXODWLRQV  $W  D  PDVV
SURWHVWPHHWLQJKHOGLQ-RKDQQHVEXUJRQ6HSWHPEHUWKDW\HDU*DQGKL
DGRSWHG  KLV  VWLOO  HYROYLQJ  PHWKRGRORJ\  RI  6DW\DJUDKD  GHYRWLRQ  WR  WKH
WUXWKRUQRQYLROHQWSURWHVWIRUWKHILUVWWLPH>@ $FFRUGLQJWR$QWKRQ\
3DUHO*DQGKLZDVDOVRLQIOXHQFHGE\WKH7DPLOWH[W7LUXNNX‫܀‬DۜEHFDXVH/HR
7ROVWR\PHQWLRQHGLWLQWKHLUFRUUHVSRQGHQFHWKDWEHJDQZLWK$/HWWHUWRD
+LQGX>@>@ *DQGKLXUJHG,QGLDQVWRGHI\WKHQHZODZDQGWRVXIIHUWKH
*DQGKLDQGKLVZLIH.DVWXUED
SXQLVKPHQWVIRUGRLQJVR*DQGKL
VLGHDVRISURWHVWVSHUVXDVLRQVNLOOVDQG

SXEOLFUHODWLRQVKDGHPHUJHG+HWRRNWKHVHEDFNWR,QGLDLQ>@>@

(XURSHDQV,QGLDQVDQG$IULFDQV
*DQGKLIRFXVHGKLVDWWHQWLRQRQ,QGLDQVZKLOHLQ6RXWK$IULFD+HZDVQRWLQWHUHVWHGLQSROLWLFV7KLVFKDQJHGDIWHUKH
ZDVGLVFULPLQDWHGDJDLQVWDQGEXOOLHGVXFKDVE\EHLQJWKURZQRXWRIDWUDLQFRDFKEHFDXVHRIKLVVNLQFRORXUE\D
ZKLWHWUDLQRIILFLDO$IWHUVHYHUDOVXFKLQFLGHQWVZLWK:KLWHVLQ6RXWK$IULFD*DQGKL
VWKLQNLQJDQGIRFXVFKDQJHGDQG
KHIHOWKHPXVWUHVLVWWKLVDQGILJKWIRUULJKWV+HHQWHUHGSROLWLFVE\IRUPLQJWKH1DWDO,QGLDQ&RQJUHVV>@$FFRUGLQJ
WR$VKZLQ'HVDLDQG*RRODP9DKHG*DQGKL
VYLHZVRQUDFLVPDUHFRQWHQWLRXVDQGLQVRPHFDVHVGLVWUHVVLQJWRWKRVH
ZKRDGPLUHKLP*DQGKLVXIIHUHGSHUVHFXWLRQIURPWKHEHJLQQLQJLQ6RXWK$IULFD/LNHZLWKRWKHUFRORXUHGSHRSOH
ZKLWHRIILFLDOVGHQLHGKLPKLVULJKWVDQGWKHSUHVVDQGWKRVHLQWKHVWUHHWVEXOOLHGDQGFDOOHGKLPDSDUDVLWHVHPL
EDUEDURXVFDQNHUVTXDOLGFRROLH\HOORZPDQDQGRWKHUHSLWKHWV3HRSOHZRXOGVSLWRQKLPDVDQH[SUHVVLRQRI
UDFLDOKDWH>@

:KLOHLQ6RXWK$IULFD*DQGKLIRFXVHGRQUDFLDOSHUVHFXWLRQRI,QGLDQVEXWLJQRUHGWKRVHRI$IULFDQV,QVRPHFDVHV
VWDWH'HVDLDQG9DKHGKLVEHKDYLRXUZDVRQHRIEHLQJDZLOOLQJSDUWRIUDFLDOVWHUHRW\SLQJDQG$IULFDQH[SORLWDWLRQ>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

'XULQJDVSHHFKLQ6HSWHPEHU*DQGKLFRPSODLQHGWKDWWKHZKLWHVLQWKH%ULWLVKFRORQ\RI6RXWK$IULFDZHUH
GHJUDGLQJ,QGLDQ+LQGXVDQG0XVOLPVWRDOHYHORI.DIILU6FKRODUVFLWHLWDVDQH[DPSOHRIHYLGHQFHWKDW*DQGKLDW
WKDWWLPHWKRXJKWRI,QGLDQVDQGEODFN6RXWK$IULFDQVGLIIHUHQWO\>@$VDQRWKHUH[DPSOHJLYHQE\+HUPDQ*DQGKLDW
DJHSUHSDUHGDOHJDOEULHIIRUWKH1DWDO$VVHPEO\LQVHHNLQJYRWLQJULJKWVIRU,QGLDQV*DQGKLFLWHGUDFH
KLVWRU\DQG(XURSHDQ2ULHQWDOLVWV
RSLQLRQVWKDW$QJOR6D[RQVDQG,QGLDQVDUHVSUXQJIURPWKHVDPH$U\DQVWRFNRU
UDWKHUWKH,QGR(XURSHDQSHRSOHVDQGDUJXHGWKDW,QGLDQVVKRXOGQRWEHJURXSHGZLWKWKH$IULFDQV>@

<HDUVODWHU*DQGKLDQGKLVFROOHDJXHVVHUYHGDQGKHOSHG$IULFDQVDVQXUVHVDQGE\RSSRVLQJUDFLVPDFFRUGLQJWRWKH
1REHO3HDFH3UL]HZLQQHU1HOVRQ0DQGHOD7KHJHQHUDOLPDJHRI*DQGKLVWDWH'HVDLDQG9DKHGKDVEHHQUHLQYHQWHG
VLQFHKLVDVVDVVLQDWLRQDVLIKHZDVDOZD\VDVDLQWZKHQLQUHDOLW\KLVOLIHZDVPRUHFRPSOH[FRQWDLQHGLQFRQYHQLHQW
WUXWKVDQGZDVRQHWKDWHYROYHGRYHUWLPH>@ ,QFRQWUDVWRWKHU$IULFDVFKRODUVVWDWHWKHHYLGHQFHSRLQWVWRDULFK
KLVWRU\RIFRRSHUDWLRQDQGHIIRUWVE\*DQGKLDQG,QGLDQSHRSOHZLWKQRQZKLWH6RXWK$IULFDQVDJDLQVWSHUVHFXWLRQRI
$IULFDQVDQGWKH$SDUWKHLG>@

,QZKHQWKH%ULWLVKGHFODUHGZDUDJDLQVWWKH=XOX.LQJGRPLQ1DWDO*DQGKLDWDJHV\PSDWKLVHGZLWKWKH
=XOXV  DQG  HQFRXUDJHG  WKH  ,QGLDQ  YROXQWHHUV  WR  KHOS  DV  DQ  DPEXODQFH  XQLW>@  +H  DUJXHG  WKDW  ,QGLDQV  VKRXOG
SDUWLFLSDWHLQWKHZDUHIIRUWVWRFKDQJHDWWLWXGHVDQGSHUFHSWLRQVRIWKH%ULWLVKSHRSOHDJDLQVWWKHFRORXUHGSHRSOH>@
*DQGKL  D JURXS  RI    ,QGLDQV  DQG EODFN  SHRSOH  RI  6RXWK  $IULFD YROXQWHHUHG  DV D  VWUHWFKHUEHDUHU  FRUSV  WR  WUHDW
ZRXQGHG%ULWLVKVROGLHUVDQGWKHRSSRVLWHVLGHRIWKHZDU=XOXYLFWLPV>@

:KLWHVROGLHUVVWRSSHG*DQGKLDQGWHDPIURPWUHDWLQJWKHLQMXUHG=XOXDQGVRPH
$IULFDQVWUHWFKHUEHDUHUVZLWK*DQGKLZHUHVKRWGHDGE\WKH%ULWLVK7KHPHGLFDO
WHDP  FRPPDQGHG  E\  *DQGKL  RSHUDWHG  IRU  OHVV  WKDQ  WZR  PRQWKV>@  *DQGKL
YROXQWHHULQJWRKHOSDVDVWDXQFKOR\DOLVWGXULQJWKH=XOXDQGRWKHUZDUVPDGHQR
GLIIHUHQFHLQWKH%ULWLVKDWWLWXGHVWDWHV+HUPDQDQGWKH$IULFDQH[SHULHQFHZDVD
SDUW  RI  KLV  JUHDW  GLVLOOXVLRQPHQW  ZLWK  WKH  :HVW  WUDQVIRUPLQJ  KLP  LQWR  DQ
XQFRPSURPLVLQJQRQFRRSHUDWRU>@

,Q    *DQGKL  HVWDEOLVKHG  DQ  LGHDOLVWLF  FRPPXQLW\  FDOOHG 

7ROVWR\  )DUP
 QHDU
-RKDQQHVEXUJZKHUHKHQXUWXUHGKLVSROLF\RISHDFHIXOUHVLVWDQFH>@>@

,Q  WKH  \HDUV  DIWHU  EODFN  6RXWK  $IULFDQV  JDLQHG  WKH  ULJKW WR  YRWH  LQ  6RXWK  $IULFD
*DQGKLSKRWRJUDSKHGLQ
*DQGKLZDVSURFODLPHGDQDWLRQDOKHURZLWKQXPHURXVPRQXPHQWV>@
6RXWK$IULFD

6WUXJJOHIRU,QGLDQLQGHSHQGHQFH±
$WWKHUHTXHVWRI*RSDO.ULVKQD*RNKDOHFRQYH\HGWRKLPE\&)$QGUHZV*DQGKLUHWXUQHGWR,QGLDLQ+H
EURXJKWDQLQWHUQDWLRQDOUHSXWDWLRQDVDOHDGLQJ,QGLDQQDWLRQDOLVWWKHRULVWDQGFRPPXQLW\RUJDQLVHU

*DQGKL MRLQHGWKH ,QGLDQ 1DWLRQDO&RQJUHVV DQG  ZDV  LQWURGXFHG WR ,QGLDQ  LVVXHV  SROLWLFV  DQG WKH  ,QGLDQ  SHRSOH
SULPDULO\E\*RNKDOH*RNKDOHZDVDNH\OHDGHURIWKH&RQJUHVV3DUW\EHVWNQRZQIRUKLVUHVWUDLQWDQGPRGHUDWLRQDQG
KLV  LQVLVWHQFH  RQ  ZRUNLQJ  LQVLGH  WKH  V\VWHP  *DQGKL  WRRN  *RNKDOH
V  OLEHUDO  DSSURDFK  EDVHG  RQ  %ULWLVK  :KLJJLVK
WUDGLWLRQVDQGWUDQVIRUPHGLWWRPDNHLWORRN,QGLDQ>@

*DQGKLWRRNOHDGHUVKLSRIWKH&RQJUHVVLQDQGEHJDQHVFDODWLQJGHPDQGVXQWLORQ-DQXDU\WKH,QGLDQ
1DWLRQDO&RQJUHVVGHFODUHGWKHLQGHSHQGHQFHRI,QGLD7KH%ULWLVKGLGQRWUHFRJQLVHWKHGHFODUDWLRQEXWQHJRWLDWLRQV
HQVXHGZLWKWKH&RQJUHVVWDNLQJDUROHLQSURYLQFLDOJRYHUQPHQWLQWKHODWHV*DQGKLDQGWKH&RQJUHVVZLWKGUHZ

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

WKHLUVXSSRUWRIWKH5DMZKHQWKH9LFHUR\GHFODUHGZDURQ*HUPDQ\LQ6HSWHPEHUZLWKRXWFRQVXOWDWLRQ7HQVLRQV
HVFDODWHGXQWLO*DQGKLGHPDQGHGLPPHGLDWHLQGHSHQGHQFHLQDQGWKH%ULWLVKUHVSRQGHGE\LPSULVRQLQJKLPDQG
WHQVRIWKRXVDQGVRI&RQJUHVVOHDGHUV0HDQZKLOHWKH0XVOLP/HDJXHGLGFRRSHUDWHZLWK%ULWDLQDQGPRYHGDJDLQVW
*DQGKL
VVWURQJRSSRVLWLRQWRGHPDQGVIRUDWRWDOO\VHSDUDWH0XVOLPVWDWHRI3DNLVWDQ,Q$XJXVWWKH%ULWLVK
SDUWLWLRQHGWKHODQGZLWK,QGLDDQG3DNLVWDQHDFKDFKLHYLQJLQGHSHQGHQFHRQWHUPVWKDW*DQGKLGLVDSSURYHG>@

5ROHLQ:RUOG:DU,
,Q$SULOGXULQJWKHODWWHUSDUWRI:RUOG:DU,WKH9LFHUR\LQYLWHG*DQGKLWRD:DU&RQIHUHQFHLQ'HOKL>@
*DQGKLDJUHHGWRDFWLYHO\UHFUXLW,QGLDQVIRUWKHZDUHIIRUW>@>@,QFRQWUDVWWRWKH=XOX:DURIDQGWKHRXWEUHDN
RI:RUOG:DU,LQZKHQKHUHFUXLWHGYROXQWHHUVIRUWKH$PEXODQFH&RUSVWKLVWLPH*DQGKLDWWHPSWHGWRUHFUXLW
FRPEDWDQWV,QD-XQHOHDIOHWHQWLWOHG$SSHDOIRU(QOLVWPHQW*DQGKLZURWH7REULQJDERXWVXFKDVWDWHRI
WKLQJVZHVKRXOGKDYHWKHDELOLW\WRGHIHQGRXUVHOYHVWKDWLVWKHDELOLW\WREHDUDUPVDQGWRXVHWKHP,IZHZDQWWR
OHDUQWKHXVHRIDUPVZLWKWKHJUHDWHVWSRVVLEOHGHVSDWFKLWLVRXUGXW\WRHQOLVWRXUVHOYHVLQWKHDUP\>@ +HGLG
KRZHYHUVWLSXODWHLQDOHWWHUWRWKH9LFHUR\
VSULYDWHVHFUHWDU\WKDWKHSHUVRQDOO\ZLOOQRWNLOORULQMXUHDQ\ERG\IULHQG
RUIRH>@

*DQGKL
VZDUUHFUXLWPHQWFDPSDLJQEURXJKWLQWRTXHVWLRQKLVFRQVLVWHQF\RQQRQYLROHQFH*DQGKL
VSULYDWHVHFUHWDU\
QRWHGWKDW7KHTXHVWLRQRIWKHFRQVLVWHQF\EHWZHHQKLVFUHHGRI
$KLPVD
QRQYLROHQFHDQGKLVUHFUXLWLQJFDPSDLJQ
ZDVUDLVHGQRWRQO\WKHQEXWKDVEHHQGLVFXVVHGHYHUVLQFH>@

&KDPSDUDQDQG.KHGD

&KDPSDUDQDJLWDWLRQV
*DQGKL
VILUVWPDMRUDFKLHYHPHQWFDPHLQZLWKWKH&KDPSDUDQDJLWDWLRQLQ%LKDU7KH&KDPSDUDQDJLWDWLRQSLWWHG
WKHORFDOSHDVDQWU\DJDLQVWWKHLUODUJHO\%ULWLVKODQGORUGVZKRZHUHEDFNHGE\WKHORFDODGPLQLVWUDWLRQ7KHSHDVDQWU\
ZDVIRUFHGWRJURZ,QGLJRDFDVKFURSZKRVHGHPDQGKDGEHHQGHFOLQLQJRYHUWZRGHFDGHVDQGZHUHIRUFHGWRVHOO
WKHLUFURSVWRWKHSODQWHUVDWDIL[HGSULFH8QKDSS\ZLWKWKLVWKHSHDVDQWU\DSSHDOHGWR*DQGKLDWKLVDVKUDPLQ
$KPHGDEDG  3XUVXLQJ  D  VWUDWHJ\  RI  QRQYLROHQW  SURWHVW  *DQGKL  WRRN  WKH  DGPLQLVWUDWLRQ  E\  VXUSULVH  DQG  ZRQ
FRQFHVVLRQVIURPWKHDXWKRULWLHV>@

.KHGDDJLWDWLRQV
,Q.KHGDZDVKLWE\IORRGVDQGIDPLQHDQGWKHSHDVDQWU\ZDVGHPDQGLQJUHOLHIIURPWD[HV*DQGKLPRYHGKLV
KHDGTXDUWHUVWR1DGLDG>@ RUJDQLVLQJVFRUHVRIVXSSRUWHUVDQGIUHVKYROXQWHHUVIURPWKHUHJLRQWKHPRVWQRWDEOH
EHLQJ 9DOODEKEKDL 3DWHO>@  8VLQJ  QRQFRRSHUDWLRQ  DV  D WHFKQLTXH  *DQGKL  LQLWLDWHG D  VLJQDWXUH  FDPSDLJQ  ZKHUH
SHDVDQWV  SOHGJHG  QRQSD\PHQW  RI  UHYHQXH  HYHQ  XQGHU  WKH  WKUHDW  RI  FRQILVFDWLRQ  RI  ODQG  $  VRFLDO  ER\FRWW  RI
PDPODWGDUVDQGWDODWGDUVUHYHQXHRIILFLDOVZLWKLQWKHGLVWULFWDFFRPSDQLHGWKHDJLWDWLRQ*DQGKLZRUNHGKDUGWR
ZLQSXEOLFVXSSRUWIRUWKHDJLWDWLRQDFURVVWKHFRXQWU\)RUILYHPRQWKVWKHDGPLQLVWUDWLRQUHIXVHGEXWILQDOO\LQHQG
0D\WKH*RYHUQPHQWJDYHZD\RQLPSRUWDQWSURYLVLRQVDQGUHOD[HGWKHFRQGLWLRQVRISD\PHQWRIUHYHQXHWD[
XQWLOWKHIDPLQHHQGHG,Q.KHGD9DOODEKEKDL3DWHOUHSUHVHQWHGWKHIDUPHUVLQQHJRWLDWLRQVZLWKWKH%ULWLVKZKR
VXVSHQGHGUHYHQXHFROOHFWLRQDQGUHOHDVHGDOOWKHSULVRQHUV>@

.KLODIDWPRYHPHQW

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

,QDIWHUWKH:RUOG:DU,ZDVRYHU*DQGKLDJHGVRXJKWSROLWLFDO

FRRSHUDWLRQ  IURP  0XVOLPV  LQ  KLV  ILJKW  DJDLQVW  %ULWLVK  LPSHULDOLVP  E\
VXSSRUWLQJWKH2WWRPDQ(PSLUHWKDWKDGEHHQGHIHDWHGLQWKH:RUOG:DU
%HIRUH  WKLV  LQLWLDWLYH  RI  *DQGKL  FRPPXQDO  GLVSXWHV  DQG  UHOLJLRXV  ULRWV
EHWZHHQ+LQGXVDQG0XVOLPVZHUHFRPPRQLQ%ULWLVK,QGLDVXFKDVWKH
ULRWV  RI  ±  *DQGKL  KDG  DOUHDG\  VXSSRUWHG  WKH  %ULWLVK  FURZQ  ZLWK
UHVRXUFHVDQGE\UHFUXLWLQJ,QGLDQVROGLHUVWRILJKWWKHZDULQ(XURSHRQ
WKH%ULWLVKVLGH7KLVHIIRUWRI*DQGKLZDVLQSDUWPRWLYDWHGE\WKH%ULWLVK
SURPLVHWRUHFLSURFDWHWKHKHOSZLWKVZDUDMVHOIJRYHUQPHQWWR,QGLDQV
DIWHUWKHHQGRI:RUOG:DU,>@ 7KH%ULWLVKJRYHUQPHQWLQVWHDGRIVHOI
JRYHUQPHQWKDGRIIHUHGPLQRUUHIRUPVLQVWHDGGLVDSSRLQWLQJ*DQGKL>@
*DQGKL  DQQRXQFHG  KLV  VDW\DJUDKD  FLYLO  GLVREHGLHQFH  LQWHQWLRQV  7KH
%ULWLVKFRORQLDORIILFLDOVPDGHWKHLUFRXQWHUPRYHE\SDVVLQJWKH5RZODWW
$FWWREORFN*DQGKL
VPRYHPHQW7KH$FWDOORZHGWKH%ULWLVKJRYHUQPHQW
WRWUHDWFLYLOGLVREHGLHQFHSDUWLFLSDQWVDVFULPLQDOV DQGJDYHLWWKHOHJDO
EDVLVWR DUUHVW DQ\RQH IRU SUHYHQWLYH LQGHILQLWH GHWHQWLRQ LQFDUFHUDWLRQ
ZLWKRXWMXGLFLDOUHYLHZRUDQ\QHHGIRUDWULDO>@
*DQGKLLQDWWKHWLPHRIWKH
*DQGKL  IHOW  WKDW  +LQGX0XVOLP  FRRSHUDWLRQ  ZDV  QHFHVVDU\  IRU  SROLWLFDO .KHGDDQG&KDPSDUDQ
SURJUHVVDJDLQVWWKH%ULWLVK+HOHYHUDJHGWKH.KLODIDWPRYHPHQWZKHUHLQ 6DW\DJUDKDV
6XQQL0XVOLPVLQ,QGLDWKHLUOHDGHUVVXFKDVWKHVXOWDQVRISULQFHO\VWDWHV
LQ,QGLDDQG$OLEURWKHUVFKDPSLRQHGWKH7XUNLVK&DOLSK  DV D VROLGDULW\
V\PERORI6XQQL,VODPLFFRPPXQLW\XPPDK7KH\VDZWKH&DOLSKDVWKHLUPHDQVWRVXSSRUW,VODPDQGWKH,VODPLF
ODZDIWHUWKHGHIHDWRI2WWRPDQ(PSLUHLQ:RUOG:DU,>@>@>@ *DQGKL
VVXSSRUWWRWKH.KLODIDWPRYHPHQWOHGWR
PL[HG  UHVXOWV  ,W  LQLWLDOO\  OHG  WR  D  VWURQJ  0XVOLP  VXSSRUW  IRU  *DQGKL  +RZHYHU  WKH  +LQGX  OHDGHUV  LQFOXGLQJ
5DELQGUDQDWK7DJRUHTXHVWLRQHG*DQGKL
VOHDGHUVKLSEHFDXVHWKH\ZHUHODUJHO\DJDLQVWUHFRJQLVLQJRUVXSSRUWLQJWKH
6XQQL,VODPLF&DOLSKLQ7XUNH\>@>@>@

7KHLQFUHDVLQJ0XVOLPVXSSRUWIRU*DQGKLDIWHUKHFKDPSLRQHGWKH&DOLSK
VFDXVHWHPSRUDULO\VWRSSHGWKH+LQGX
0XVOLP  FRPPXQDO  YLROHQFH  ,W  RIIHUHG  HYLGHQFH  RI  LQWHUFRPPXQDO  KDUPRQ\  LQ  MRLQW  5RZODWW  VDW\DJUDKD
GHPRQVWUDWLRQUDOOLHVUDLVLQJ*DQGKL
VVWDWXUHDVWKHSROLWLFDOOHDGHUWRWKH%ULWLVK>@>@+LVVXSSRUWIRUWKH.KLODIDW
PRYHPHQWDOVRKHOSHGKLPVLGHOLQH0XKDPPDG$OL-LQQDKZKRKDGDQQRXQFHGKLVRSSRVLWLRQWRWKHVDW\DJUDKD
QRQFRRSHUDWLRQPRYHPHQWDSSURDFKRI*DQGKL-LQQDKEHJDQFUHDWLQJKLVLQGHSHQGHQWVXSSRUWDQGODWHUZHQWRQWR
OHDGWKHGHPDQGIRU:HVWDQG(DVW3DNLVWDQ>@>@

%\WKHHQGRIWKH.KLODIDWPRYHPHQWKDGFROODSVHG>@ 7XUNH\
V$WDWXUN KDGHQGHGWKH &DOLSKDWH .KLODIDW
PRYHPHQWHQGHGDQG0XVOLPVXSSRUWIRU*DQGKLODUJHO\HYDSRUDWHG>@>@0XVOLPOHDGHUVDQGGHOHJDWHVDEDQGRQHG
*DQGKL  DQG  KLV  &RQJUHVV>@  +LQGX0XVOLP  FRPPXQDO  FRQIOLFWV  UHLJQLWHG  'HDGO\  UHOLJLRXV  ULRWV  UHDSSHDUHG  LQ
QXPHURXVFLWLHVZLWKLQ8QLWHG3URYLQFHVRI$JUDDQG2XGKDORQH>@>@

1RQFRRSHUDWLRQ
:LWKKLVERRN+LQG6ZDUDM*DQGKLDJHGGHFODUHGWKDW%ULWLVKUXOHZDVHVWDEOLVKHGLQ,QGLDZLWKWKHFR
RSHUDWLRQRI,QGLDQVDQGKDGVXUYLYHGRQO\EHFDXVHRIWKLVFRRSHUDWLRQ,I,QGLDQVUHIXVHGWRFRRSHUDWH%ULWLVKUXOH
ZRXOGFROODSVHDQGVZDUDMZRXOGFRPH>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

,Q  )HEUXDU\    *DQGKL  FDXWLRQHG  WKH  9LFHUR\  RI  ,QGLD  ZLWK  D  FDEOH

FRPPXQLFDWLRQ  WKDW LI  WKH %ULWLVK ZHUH  WR SDVV WKH  5RZODWW $FW  KH  ZLOO
DSSHDO  ,QGLDQV  WR  VWDUW  FLYLO  GLVREHGLHQFH>@  7KH  %ULWLVK  JRYHUQPHQW
LJQRUHG  KLP  SDVVHG  WKH  ODZ  VWDWLQJ  LW  ZLOO  QRW  \LHOG  WR  WKUHDWV  7KH
VDW\DJUDKDFLYLOGLVREHGLHQFHIROORZHGZLWKSHRSOHDVVHPEOLQJWRSURWHVW
WKH5RZODWW$FW2Q0DUFK%ULWLVKODZRIILFHUVRSHQHGILUHRQDQ
DVVHPEO\  RI  XQDUPHG  SHRSOH  SHDFHIXOO\  JDWKHUHG  SDUWLFLSDWLQJ  LQ
VDW\DJUDKDLQ'HOKL>@ 3HRSOHULRWHGLQUHWDOLDWLRQ2Q$SULOD
+LQGX  IHVWLYDO GD\  KH DVNHG D  FURZG WR  UHPHPEHU  QRW  WR  LQMXUH  RU  NLOO
%ULWLVKSHRSOHEXWH[SUHVVWKHLUIUXVWUDWLRQZLWKSHDFHWRER\FRWW%ULWLVK
JRRGVDQGEXUQDQ\%ULWLVKFORWKLQJWKH\RZQ+HHPSKDVLVHGWKHXVHRI
QRQYLROHQFHWRWKH%ULWLVKDQGWRZDUGVHDFKRWKHUHYHQLIWKHRWKHUVLGH 6DEDUPDWL$VKUDP*DQGKL
VKRPH
XVHV  YLROHQFH  &RPPXQLWLHV  DFURVV  ,QGLD  DQQRXQFHG  SODQV  WR  JDWKHU  LQ LQ*XMDUDWLVQRZDPXVHXP
JUHDWHUQXPEHUVWRSURWHVW*RYHUQPHQWZDUQHGKLPWRQRWHQWHU'HOKL SKRWRJUDSKHGLQ

*DQGKL  GHILHG  WKH  RUGHU  2Q    $SULO  *DQGKL  ZDV  DUUHVWHG>@  3HRSOH

ULRWHG2Q$SULOSHRSOHLQFOXGLQJZRPHQZLWKFKLOGUHQJDWKHUHGLQ
DQ$PULWVDUSDUNDQGD%ULWLVKRIILFHUQDPHG5HJLQDOG'\HUVXUURXQGHGWKHPDQGRUGHUHGKLVWURRSVWRILUHRQWKHP
7KHUHVXOWLQJ-DOOLDQZDOD%DJKPDVVDFUHRU$PULWVDUPDVVDFUHRIKXQGUHGVRI6LNKDQG+LQGXFLYLOLDQVHQUDJHGWKH
VXEFRQWLQHQWEXWZDVFKHHUHGE\VRPH%ULWRQVDQGSDUWVRIWKH%ULWLVKPHGLDDVDQDSSURSULDWHUHVSRQVH*DQGKLLQ
$KPHGDEDGRQWKHGD\DIWHUWKHPDVVDFUHLQ$PULWVDUGLGQRWFULWLFLVHWKH%ULWLVKDQGLQVWHDGFULWLFLVHGKLVIHOORZ
FRXQWU\PHQIRUQRWH[FOXVLYHO\XVLQJORYHWRGHDOZLWKWKHKDWHRIWKH%ULWLVKJRYHUQPHQW>@*DQGKLGHPDQGHGWKDW
SHRSOHVWRSDOOYLROHQFHVWRSDOOSURSHUW\GHVWUXFWLRQDQGZHQWRQIDVWWRGHDWKWRSUHVVXUH,QGLDQVWRVWRSWKHLU
ULRWLQJ>@

7KHPDVVDFUHDQG*DQGKL
VQRQYLROHQWUHVSRQVHWRLWPRYHGPDQ\EXWDOVRPDGHVRPH6LNKVDQG+LQGXVXSVHWWKDW
'\HUZDVJHWWLQJDZD\ZLWKPXUGHU,QYHVWLJDWLRQFRPPLWWHHVZHUHIRUPHGE\WKH%ULWLVKZKLFK*DQGKLDVNHG,QGLDQV
WRER\FRWW>@7KHXQIROGLQJHYHQWVWKHPDVVDFUHDQGWKH%ULWLVKUHVSRQVHOHG*DQGKLWRWKHEHOLHIWKDW,QGLDQVZLOO
QHYHUJHWDIDLUHTXDOWUHDWPHQWXQGHU%ULWLVKUXOHUVDQGKHVKLIWHGKLVDWWHQWLRQWR6ZDUDMRUVHOIUXOHDQGSROLWLFDO
LQGHSHQGHQFHIRU,QGLD>@ ,Q*DQGKLZDVWKHOHDGHURIWKH,QGLDQ1DWLRQDO&RQJUHVV>@ +HUHRUJDQLVHGWKH
&RQJUHVV:LWK&RQJUHVVQRZEHKLQGKLPDQG0XVOLPVXSSRUWWULJJHUHGE\KLVEDFNLQJWKH.KLODIDWPRYHPHQWWR
UHVWRUHWKH&DOLSKLQ7XUNH\>@*DQGKLKDGWKHSROLWLFDOVXSSRUWDQGWKHDWWHQWLRQRIWKH%ULWLVK5DM>@>@>@

*DQGKLH[SDQGHGKLVQRQYLROHQWQRQFRRSHUDWLRQSODWIRUPWRLQFOXGHWKH
VZDGHVKL  SROLF\  ±  WKH  ER\FRWW  RI  IRUHLJQPDGH  JRRGV  HVSHFLDOO\  %ULWLVK
JRRGV /LQNHG WR WKLV ZDV KLV DGYRFDF\ WKDW NKDGL  KRPHVSXQ  FORWK  EH
ZRUQ  E\  DOO  ,QGLDQV  LQVWHDG  RI  %ULWLVKPDGH  WH[WLOHV  *DQGKL  H[KRUWHG
,QGLDQ  PHQ  DQG ZRPHQ  ULFK  RU  SRRU  WR VSHQGWLPH HDFK  GD\ VSLQQLQJ
NKDGL  LQ  VXSSRUW  RI  WKH  LQGHSHQGHQFH  PRYHPHQW>@  ,Q  DGGLWLRQ  WR
ER\FRWWLQJ  %ULWLVK  SURGXFWV  *DQGKL  XUJHG  WKH  SHRSOH  WR  ER\FRWW  %ULWLVK
LQVWLWXWLRQVDQGODZFRXUWVWRUHVLJQIURPJRYHUQPHQWHPSOR\PHQWDQGWR
IRUVDNH%ULWLVKWLWOHVDQGKRQRXUV*DQGKLWKXVEHJDQKLVMRXUQH\DLPHGDW
*DQGKLVSLQQLQJ\DUQLQWKHODWH
V FULSSOLQJ  WKH  %ULWLVK  ,QGLD  JRYHUQPHQW  HFRQRPLFDOO\  SROLWLFDOO\  DQG
DGPLQLVWUDWLYHO\>@

7KHDSSHDORI1RQFRRSHUDWLRQJUHZLWVVRFLDOSRSXODULW\GUHZSDUWLFLSDWLRQIURPDOOVWUDWDRI,QGLDQVRFLHW\*DQGKL
ZDVDUUHVWHGRQ0DUFKWULHGIRUVHGLWLRQDQGVHQWHQFHGWRVL[\HDUV
LPSULVRQPHQW+HEHJDQKLVVHQWHQFHRQ

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

0DUFK:LWK*DQGKLLVRODWHGLQSULVRQWKH,QGLDQ1DWLRQDO&RQJUHVVVSOLWLQWRWZRIDFWLRQVRQHOHGE\&KLWWD
5DQMDQ'DVDQG0RWLODO 1HKUXIDYRXULQJSDUW\ SDUWLFLSDWLRQ LQWKH OHJLVODWXUHV DQGWKHRWKHUOHGE\ &KDNUDYDUWL
5DMDJRSDODFKDULDQG6DUGDU9DOODEKEKDL3DWHORSSRVLQJWKLVPRYH>@)XUWKHUPRUHFRRSHUDWLRQDPRQJ+LQGXVDQG
0XVOLPVHQGHGDV.KLODIDWPRYHPHQWFROODSVHGZLWKWKHULVHRI$WDWXUNLQ7XUNH\0XVOLPOHDGHUVOHIWWKH&RQJUHVV
DQGEHJDQIRUPLQJ0XVOLPRUJDQLVDWLRQV7KHSROLWLFDOEDVHEHKLQG*DQGKLKDGEURNHQLQWRIDFWLRQV*DQGKLZDV
UHOHDVHGLQ)HEUXDU\IRUDQDSSHQGLFLWLVRSHUDWLRQKDYLQJVHUYHGRQO\WZR\HDUV>@

6DOW6DW\DJUDKD6DOW0DUFK
$IWHUKLVHDUO\ UHOHDVH IURP SULVRQIRU SROLWLFDOFULPHV LQ  RYHU WKH
VHFRQGKDOIRIWKHV*DQGKLFRQWLQXHGWRSXUVXHVZDUDM+HSXVKHG
WKURXJKDUHVROXWLRQDWWKH&DOFXWWD&RQJUHVVLQ'HFHPEHUFDOOLQJRQ
WKH  %ULWLVK  JRYHUQPHQW  WR  JUDQW  ,QGLD  GRPLQLRQ  VWDWXV  RU  IDFH  D  QHZ
FDPSDLJQRIQRQFRRSHUDWLRQZLWKFRPSOHWHLQGHSHQGHQFHIRUWKHFRXQWU\
DVLWVJRDO>@ $IWHUKLVVXSSRUWIRUWKH:RUOG:DU,ZLWK,QGLDQFRPEDW
WURRSV  DQG  WKH  IDLOXUH  RI  .KLODIDW  PRYHPHQW  LQ  SUHVHUYLQJ  WKH  UXOH  RI
&DOLSK  LQ  7XUNH\  IROORZHG  E\  D  FROODSVH  LQ  0XVOLP  VXSSRUW  IRU  KLV
OHDGHUVKLS  VRPH  VXFK  DV  6XEKDV  &KDQGUD  %RVH  DQG  %KDJDW  6LQJK 2ULJLQDOIRRWDJHRI*DQGKLDQGKLV
TXHVWLRQHGKLVYDOXHVDQGQRQYLROHQWDSSURDFK>@>@:KLOHPDQ\+LQGX IROORZHUVPDUFKLQJWR'DQGLLQWKH
OHDGHUV  FKDPSLRQHG  D  GHPDQG  IRU  LPPHGLDWH  LQGHSHQGHQFH  *DQGKL 6DOW6DW\DJUDKD
UHYLVHGKLVRZQFDOOWRDRQH\HDUZDLWLQVWHDGRIWZR>@

7KH%ULWLVKGLGQRWUHVSRQGIDYRXUDEO\WR*DQGKL
VSURSRVDO%ULWLVKSROLWLFDOOHDGHUVVXFKDV/RUG%LUNHQKHDGDQG
:LQVWRQ&KXUFKLOODQQRXQFHGRSSRVLWLRQWRWKHDSSHDVHUVRI*DQGKLLQWKHLUGLVFXVVLRQVZLWK(XURSHDQGLSORPDWV
ZKRV\PSDWKLVHGZLWK,QGLDQGHPDQGV>@ 2Q'HFHPEHUWKHIODJRI,QGLDZDVXQIXUOHGLQ/DKRUH*DQGKL
OHG&RQJUHVVFHOHEUDWHG-DQXDU\DV,QGLD
V,QGHSHQGHQFH'D\LQ/DKRUH7KLVGD\ZDVFRPPHPRUDWHGE\
DOPRVWHYHU\RWKHU,QGLDQRUJDQLVDWLRQ*DQGKLWKHQODXQFKHGDQHZ6DW\DJUDKDDJDLQVWWKHWD[RQVDOWLQ0DUFK
7KLVZDVKLJKOLJKWHGE\WKHIDPRXV6DOW0DUFKWR'DQGLIURP0DUFKWR$SULOZKHUHKHPDUFKHGNLORPHWUHV
PLIURP$KPHGDEDGWR'DQGL*XMDUDWWRPDNHVDOWKLPVHOI7KRXVDQGVRI,QGLDQVMRLQHGKLPRQWKLVPDUFKWR
WKH  VHD  7KLV  FDPSDLJQ  ZDV  RQH  RI  KLV  PRVW  VXFFHVVIXO  DW  XSVHWWLQJ  %ULWLVK  KROG  RQ  ,QGLD  %ULWDLQ  UHVSRQGHG  E\
LPSULVRQLQJRYHUSHRSOH>@

$FFRUGLQJ WR 6DUPD *DQGKL  UHFUXLWHG ZRPHQ WRSDUWLFLSDWH LQ WKH VDOW WD[ FDPSDLJQV DQGWKH ER\FRWWRI IRUHLJQ
SURGXFWVZKLFKJDYHPDQ\ZRPHQDQHZVHOIFRQILGHQFHDQGGLJQLW\LQWKHPDLQVWUHDPRI,QGLDQSXEOLFOLIH>@
+RZHYHURWKHUVFKRODUVVXFKDV0DULO\Q)UHQFKVWDWHWKDW*DQGKLEDUUHGZRPHQIURPMRLQLQJKLVFLYLOGLVREHGLHQFH
PRYHPHQWEHFDXVHKHIHDUHGKHZRXOGEHDFFXVHGRIXVLQJZRPHQDVSROLWLFDOVKLHOG>@ :KHQZRPHQLQVLVWHGWKDW
WKH\MRLQWKHPRYHPHQWDQGSXEOLFGHPRQVWUDWLRQVDFFRUGLQJWR7KDSDU%MRUNHUW*DQGKLDVNHGWKHYROXQWHHUVWRJHW
SHUPLVVLRQVRIWKHLUJXDUGLDQVDQGRQO\WKRVHZRPHQZKRFDQDUUDQJHFKLOGFDUHVKRXOGMRLQKLP>@ 5HJDUGOHVVRI
*DQGKL
VDSSUHKHQVLRQVDQGYLHZV,QGLDQZRPHQMRLQHGWKH6DOW0DUFKE\WKHWKRXVDQGVWRGHI\WKH%ULWLVKVDOWWD[HV
DQGPRQRSRO\RQVDOWPLQLQJ$IWHU*DQGKL
VDUUHVWWKHZRPHQPDUFKHGDQGSLFNHWHGVKRSVRQWKHLURZQDFFHSWLQJ
YLROHQFHDQGYHUEDODEXVHIURP%ULWLVKDXWKRULWLHVIRUWKHFDXVHLQDPDQQHU*DQGKLLQVSLUHG>@

*DQGKLDVIRONKHUR
$FFRUGLQJWR$WOXU\0XUDOL,QGLDQ&RQJUHVVLQWKHVDSSHDOHGWR$QGKUD3UDGHVKSHDVDQWVE\FUHDWLQJ7HOXJX
ODQJXDJHSOD\VWKDWFRPELQHG,QGLDQP\WKRORJ\DQGOHJHQGVOLQNHGWKHPWR*DQGKL
VLGHDVDQGSRUWUD\HG*DQGKLDV

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

D  PHVVLDK  D  UHLQFDUQDWLRQ  RI  DQFLHQW  DQG  PHGLHYDO  ,QGLDQ  QDWLRQDOLVW

OHDGHUV  DQG  VDLQWV  7KH  SOD\V  EXLOW  VXSSRUW  DPRQJ  SHDVDQWV  VWHHSHG  LQ
WUDGLWLRQDO+LQGXFXOWXUHDFFRUGLQJWR0XUDOLDQGWKLVHIIRUWPDGH*DQGKL
DIRONKHURLQ7HOXJXVSHDNLQJYLOODJHVDVDFUHGPHVVLDKOLNHILJXUH>@

$FFRUGLQJWR'HQQLV'DOWRQLWZDVWKHLGHDVWKDWZHUHUHVSRQVLEOHIRUKLV
ZLGH  IROORZLQJ  *DQGKL  FULWLFLVHG  :HVWHUQ  FLYLOLVDWLRQ  DV  RQH  GULYHQ  E\
EUXWH  IRUFH  DQG  LPPRUDOLW\  FRQWUDVWLQJ  LW  ZLWK  KLV  FDWHJRULVDWLRQ  RI
,QGLDQFLYLOLVDWLRQDVRQHGULYHQE\VRXOIRUFHDQGPRUDOLW\>@ *DQGKL
FDSWXUHGWKHLPDJLQDWLRQRIWKHSHRSOHRIKLVKHULWDJHZLWKKLVLGHDVDERXW
,QGLDQZRUNHUVRQVWULNHLQVXSSRUW
ZLQQLQJKDWHZLWKORYH7KHVHLGHDVDUHHYLGHQFHGLQKLVSDPSKOHWVIURP RI*DQGKLLQ
WKHVLQ6RXWK$IULFDZKHUHWRRKHZDVSRSXODUDPRQJWKH,QGLDQ
LQGHQWXUHG  ZRUNHUV  $IWHU  KH  UHWXUQHG  WR  ,QGLD  SHRSOH  IORFNHG  WR  KLP
EHFDXVHKHUHIOHFWHGWKHLUYDOXHV>@

*DQGKLDOVRFDPSDLJQHGKDUGJRLQJIURPRQHUXUDOFRUQHURIWKH,QGLDQVXEFRQWLQHQWWRDQRWKHU+HXVHGWHUPLQRORJ\
DQGSKUDVHVVXFKDV5DPDUDM\DIURP5DPD\DQD3UDKODGDDVDSDUDGLJPDWLFLFRQDQGVXFKFXOWXUDOV\PEROVDV
DQRWKHUIDFHWRIVZDUDMDQGVDW\DJUDKD>@7KHVHLGHDVVRXQGHGVWUDQJHRXWVLGH,QGLDGXULQJKLVOLIHWLPHEXWWKH\
UHDGLO\DQGGHHSO\UHVRQDWHGZLWKWKHFXOWXUHDQGKLVWRULFYDOXHVRIKLVSHRSOH>@>@

1HJRWLDWLRQV
7KHJRYHUQPHQWUHSUHVHQWHGE\/RUG,UZLQGHFLGHGWRQHJRWLDWHZLWK*DQGKL7KH*DQGKL±,UZLQ3DFWZDVVLJQHGLQ
0DUFK7KH%ULWLVK*RYHUQPHQWDJUHHGWRIUHHDOOSROLWLFDOSULVRQHUVLQUHWXUQIRUWKHVXVSHQVLRQRIWKHFLYLO
GLVREHGLHQFHPRYHPHQW$FFRUGLQJWRWKHSDFW*DQGKLZDVLQYLWHGWRDWWHQGWKH5RXQG7DEOH&RQIHUHQFHLQ/RQGRQ
IRUGLVFXVVLRQVDQGDVWKHVROHUHSUHVHQWDWLYHRIWKH,QGLDQ1DWLRQDO&RQJUHVV7KHFRQIHUHQFHZDVDGLVDSSRLQWPHQWWR
*DQGKLDQGWKHQDWLRQDOLVWV*DQGKLH[SHFWHGWRGLVFXVV,QGLD
VLQGHSHQGHQFHZKLOHWKH%ULWLVKVLGHIRFXVHGRQWKH
,QGLDQSULQFHVDQG,QGLDQPLQRULWLHVUDWKHUWKDQRQDWUDQVIHURISRZHU/RUG,UZLQ
VVXFFHVVRU/RUG:LOOLQJGRQWRRN
DKDUGOLQHDJDLQVW,QGLDDVDQLQGHSHQGHQWQDWLRQEHJDQDQHZFDPSDLJQRIFRQWUROOLQJDQGVXEGXLQJWKHQDWLRQDOLVW
PRYHPHQW*DQGKLZDVDJDLQDUUHVWHGDQGWKHJRYHUQPHQWWULHGDQGIDLOHGWRQHJDWHKLVLQIOXHQFHE\FRPSOHWHO\
LVRODWLQJKLPIURPKLVIROORZHUV>@

,Q%ULWDLQ:LQVWRQ&KXUFKLOODSURPLQHQW&RQVHUYDWLYHSROLWLFLDQZKRZDVWKHQRXWRIRIILFHEXWODWHUEHFDPHLWV
SULPHPLQLVWHUEHFDPHDYLJRURXVDQGDUWLFXODWHFULWLFRI*DQGKLDQGRSSRQHQWRIKLVORQJWHUPSODQV&KXUFKLOORIWHQ
ULGLFXOHG*DQGKLVD\LQJLQDZLGHO\UHSRUWHGVSHHFK

,WLVDODUPLQJDQGDOVRQDXVHDWLQJWRVHH0U*DQGKLDVHGLWLRXV0LGGOH7HPSOHODZ\HUQRZ
SRVLQJDVDIDNLURIDW\SHZHOONQRZQLQWKH(DVWVWULGLQJKDOIQDNHGXSWKHVWHSVRIWKH
9LFHUHJDOSDODFHWRSDUOH\RQHTXDOWHUPVZLWKWKHUHSUHVHQWDWLYHRIWKH.LQJ(PSHURU>@

&KXUFKLOO
VELWWHUQHVVDJDLQVW*DQGKLJUHZLQWKHV+HFDOOHG*DQGKLDVWKHRQHZKRZDVVHGLWLRXVLQDLPZKRVH
HYLO  JHQLXV  DQG  PXOWLIRUP  PHQDFH  ZDV  DWWDFNLQJ  WKH  %ULWLVK  HPSLUH  &KXUFKLOO  FDOOHG  KLP  D  GLFWDWRU  D  +LQGX
0XVVROLQLIRPHQWLQJDUDFHZDUWU\LQJWRUHSODFHWKH5DMZLWK%UDKPLQFURQLHVSOD\LQJRQWKHLJQRUDQFHRI,QGLDQ
PDVVHVDOOIRUVHOILVKJDLQ>@&KXUFKLOODWWHPSWHGWRLVRODWH*DQGKLDQGKLVFULWLFLVPRI*DQGKLZDVZLGHO\FRYHUHG
E\(XURSHDQDQG$PHULFDQSUHVV,WJDLQHG&KXUFKLOOV\PSDWKHWLFVXSSRUWEXWLWDOVRLQFUHDVHGVXSSRUWIRU*DQGKL
DPRQJ(XURSHDQV7KHGHYHORSPHQWVKHLJKWHQHG&KXUFKLOO
VDQ[LHW\WKDWWKH%ULWLVKWKHPVHOYHVZRXOGJLYHXSRXWRI
SDFLILVPDQGPLVSODFHGFRQVFLHQFH>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

5RXQG7DEOH&RQIHUHQFHV
'XULQJWKHGLVFXVVLRQVEHWZHHQ*DQGKLDQGWKH%ULWLVKJRYHUQPHQWRYHU
±  DW  WKH  5RXQG  7DEOH  &RQIHUHQFHV  *DQGKL  QRZ  DJHG  DERXW  
VRXJKWFRQVWLWXWLRQDOUHIRUPVDVDSUHSDUDWLRQWRWKHHQGRIFRORQLDO%ULWLVK
UXOHDQGEHJLQWKHVHOIUXOHE\,QGLDQV>@7KH%ULWLVKVLGHVRXJKWUHIRUPV
WKDWZRXOGNHHS,QGLDQVXEFRQWLQHQWDVDFRORQ\7KH%ULWLVKQHJRWLDWRUV
SURSRVHG  FRQVWLWXWLRQDO  UHIRUPV  RQ  D  %ULWLVK  'RPLQLRQ  PRGHO  WKDW
HVWDEOLVKHGVHSDUDWHHOHFWRUDWHVEDVHGRQUHOLJLRXVDQGVRFLDOGLYLVLRQV7KH
%ULWLVKTXHVWLRQHGWKH&RQJUHVVSDUW\DQG*DQGKL
VDXWKRULW\WRVSHDNIRU
DOORI,QGLD>@7KH\LQYLWHG,QGLDQUHOLJLRXVOHDGHUVVXFKDV0XVOLPVDQG
6LNKV  WR  SUHVV  WKHLU  GHPDQGV  DORQJ  UHOLJLRXV  OLQHV  DV  ZHOO  DV  %  5
$PEHGNDU  DV  WKH  UHSUHVHQWDWLYH  OHDGHU  RI  WKH  XQWRXFKDEOHV>@  *DQGKL
YHKHPHQWO\RSSRVHGDFRQVWLWXWLRQWKDWHQVKULQHGULJKWVRUUHSUHVHQWDWLRQV
EDVHGRQFRPPXQDOGLYLVLRQVEHFDXVHKHIHDUHGWKDW LWZRXOGQRWEULQJ
SHRSOH  WRJHWKHU  EXW  GLYLGH  WKHP  SHUSHWXDWH  WKHLU  VWDWXV  DQG  GLYHUW  WKH
DWWHQWLRQIURP,QGLD
VVWUXJJOHWRHQGWKHFRORQLDOUXOH>@>@ 0DKDGHY'HVDLOHIWZDV*DQGKL
V
SHUVRQDODVVLVWDQWERWKDW%LUOD
$IWHU*DQGKLUHWXUQHGIURPWKH6HFRQG5RXQG7DEOHFRQIHUHQFHKHVWDUWHG +RXVH%RPED\$SULO
DQHZVDW\DJUDKD+HZDVDUUHVWHGDQGLPSULVRQHGDWWKH<HUZDGD-DLO
3XQH:KLOHKHZDVLQSULVRQWKH%ULWLVKJRYHUQPHQWHQDFWHGDQHZODZ
WKDWJUDQWHGXQWRXFKDEOHVDVHSDUDWHHOHFWRUDWH,WFDPHWREHNQRZQDVWKH&RPPXQDO$ZDUG>@,QSURWHVW*DQGKL
VWDUWHG DIDVWXQWRGHDWK ZKLOH KHZDVKHOGLQ SULVRQ>@  7KH UHVXOWLQJ  SXEOLF RXWFU\ IRUFHG WKH  JRYHUQPHQW  LQ
FRQVXOWDWLRQVZLWK$PEHGNDUWRUHSODFHWKH&RPPXQDO$ZDUGZLWKDFRPSURPLVH3RRQD3DFW>@>@

&RQJUHVVSROLWLFV
,Q*DQGKLUHVLJQHGIURP&RQJUHVVSDUW\PHPEHUVKLS+HGLGQRWGLVDJUHHZLWKWKHSDUW\
VSRVLWLRQEXWIHOWWKDWLI
KHUHVLJQHGKLVSRSXODULW\ZLWK,QGLDQVZRXOGFHDVHWRVWLIOHWKHSDUW\
VPHPEHUVKLSZKLFKDFWXDOO\YDULHGLQFOXGLQJ
FRPPXQLVWVVRFLDOLVWVWUDGHXQLRQLVWVVWXGHQWVUHOLJLRXVFRQVHUYDWLYHVDQGWKRVHZLWKSUREXVLQHVVFRQYLFWLRQVDQG
WKDWWKHVHYDULRXVYRLFHVZRXOGJHWDFKDQFHWRPDNHWKHPVHOYHVKHDUG*DQGKLDOVRZDQWHGWRDYRLGEHLQJDWDUJHWIRU
5DMSURSDJDQGDE\OHDGLQJDSDUW\WKDWKDGWHPSRUDULO\DFFHSWHGSROLWLFDODFFRPPRGDWLRQZLWKWKH5DM>@

*DQGKLUHWXUQHGWRDFWLYHSROLWLFVDJDLQLQZLWKWKH1HKUXSUHVLGHQF\DQGWKH/XFNQRZVHVVLRQRIWKH&RQJUHVV
$OWKRXJK*DQGKLZDQWHGDWRWDOIRFXVRQWKHWDVNRIZLQQLQJLQGHSHQGHQFHDQGQRWVSHFXODWLRQDERXW,QGLD
VIXWXUH
KHGLGQRWUHVWUDLQWKH&RQJUHVVIURPDGRSWLQJVRFLDOLVPDVLWVJRDO*DQGKLKDGDFODVKZLWK6XEKDV&KDQGUD%RVH
ZKRKDGEHHQHOHFWHGSUHVLGHQWLQDQGZKRKDGSUHYLRXVO\H[SUHVVHGDODFNRIIDLWKLQQRQYLROHQFHDVDPHDQVRI
SURWHVW>@ 'HVSLWH*DQGKL
VRSSRVLWLRQ%RVHZRQDVHFRQGWHUPDV&RQJUHVV3UHVLGHQWDJDLQVW*DQGKL
VQRPLQHH
'U  3DWWDEKL  6LWDUDPD\\D  EXW  OHIW  WKH  &RQJUHVV  ZKHQ  WKH  $OO,QGLD  OHDGHUV  UHVLJQHG  HQ  PDVVH  LQ  SURWHVW  RI  KLV
DEDQGRQPHQW  RI  WKH  SULQFLSOHV  LQWURGXFHG E\  *DQGKL>@>@  *DQGKL  GHFODUHG  WKDW  6LWDUDPD\\D
V  GHIHDW  ZDV  KLV
GHIHDW>@

:RUOG:DU,,DQG4XLW,QGLDPRYHPHQW
*DQGKLRSSRVHGSURYLGLQJDQ\KHOSWRWKH%ULWLVKZDUHIIRUWDQGKHFDPSDLJQHGDJDLQVWDQ\,QGLDQSDUWLFLSDWLRQLQWKH
:RUOG:DU,,>@ *DQGKL
VFDPSDLJQGLGQRWHQMR\WKHVXSSRUWRI,QGLDQPDVVHVDQGPDQ\,QGLDQOHDGHUVVXFKDV
6DUGDU  3DWHO  DQG  5DMHQGUD  3UDVDG  +LV  FDPSDLJQ  ZDV  D  IDLOXUH>@  2YHU    PLOOLRQ  ,QGLDQV  LJQRUHG  *DQGKL

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

YROXQWHHUHGDQGMRLQHGWKH%ULWLVKPLOLWDU\WRILJKWRQYDULRXVIURQWVRIWKH
DOOLHGIRUFHV>@

*DQGKL  RSSRVLWLRQ  WR  WKH  ,QGLDQ  SDUWLFLSDWLRQ  LQ  WKH  :RUOG :DU  ,,  ZDV

PRWLYDWHGE\KLVEHOLHIWKDW,QGLDFRXOGQRWEHSDUW\WRDZDURVWHQVLEO\
EHLQJ  IRXJKW  IRU  GHPRFUDWLF  IUHHGRP  ZKLOH  WKDW  IUHHGRP  ZDV  GHQLHG  WR
,QGLDLWVHOI>@+HDOVRFRQGHPQHG1D]LVPDQG)DVFLVPDYLHZZKLFKZRQ
HQGRUVHPHQW  RI  RWKHU  ,QGLDQ  OHDGHUV  $V  WKH  ZDU  SURJUHVVHG  *DQGKL
LQWHQVLILHG KLV  GHPDQG IRU  LQGHSHQGHQFH  FDOOLQJ  IRU  WKH  %ULWLVK  WR  4XLW
,QGLDLQDVSHHFKLQ0XPEDL>@7KLVZDV*DQGKL
VDQGWKH&RQJUHVV
3DUW\
V  PRVW  GHILQLWLYH  UHYROW  DLPHG  DW  VHFXULQJ  WKH  %ULWLVK  H[LW  IURP
,QGLD>@  7KH  %ULWLVK  JRYHUQPHQW  UHVSRQGHG  TXLFNO\  WR  WKH  4XLW  ,QGLD
VSHHFKDQGZLWKLQKRXUVDIWHU*DQGKL
VVSHHFKDUUHVWHG*DQGKLDQGDOOWKH 1HKUXDQG*DQGKLLQ
PHPEHUV  RI  WKH  &RQJUHVV  :RUNLQJ  &RPPLWWHH>@  +LV  FRXQWU\PHQ
UHWDOLDWHG  WKH  DUUHVWV  E\  GDPDJLQJ  RU  EXUQLQJ  GRZQ  KXQGUHGV  RI
JRYHUQPHQWRZQHGUDLOZD\VWDWLRQVSROLFHVWDWLRQVDQGFXWWLQJGRZQWHOHJUDSKZLUHV>@

,Q*DQGKLQRZQHDULQJDJHXUJHGKLVSHRSOHWRFRPSOHWHO\VWRSFRRSHUDWLQJZLWKWKHLPSHULDOJRYHUQPHQW
,QWKLVHIIRUWKHXUJHGWKDWWKH\QHLWKHUNLOOQRULQMXUH%ULWLVKSHRSOHEXWEHZLOOLQJWRVXIIHUDQGGLHLIYLROHQFHLV
LQLWLDWHGE\WKH%ULWLVKRIILFLDOV>@ +HFODULILHGWKDWWKHPRYHPHQWZRXOGQRWEHVWRSSHGEHFDXVHRIDQ\LQGLYLGXDO
DFWVRIYLROHQFHVD\LQJWKDWWKHRUGHUHGDQDUFK\RIWKHSUHVHQWV\VWHPRIDGPLQLVWUDWLRQZDVZRUVHWKDQUHDO
DQDUFK\>@>@+HXUJHG,QGLDQVWR.DUR\DPDUR'RRUGLHLQWKHFDXVHRIWKHLUULJKWVDQGIUHHGRPV>@>@

*DQGKL
VDUUHVWODVWHGWZR\HDUVDVKHZDVKHOGLQWKH$JD.KDQ3DODFHLQ
3XQH'XULQJWKLVSHULRGKLVORQJWLPHVHFUHWDU\0DKDGHY'HVDLGLHGRID
KHDUWDWWDFNKLVZLIH.DVWXUEDGLHGDIWHUPRQWKV
LPSULVRQPHQWRQ
)HEUXDU\DQG*DQGKLVXIIHUHGDVHYHUHPDODULDDWWDFN>@ :KLOHLQ
-DLO  KH  DJUHHG  WR  DQ  LQWHUYLHZ  ZLWK  6WXDUW  *HOGHU  D  %ULWLVK  MRXUQDOLVW
*HOGHUWKHQFRPSRVHGDQGUHOHDVHGDQLQWHUYLHZVXPPDU\FDEOHGLWWRWKH
PDLQVWUHDPSUHVVWKDWDQQRXQFHGVXGGHQFRQFHVVLRQV*DQGKLZDVZLOOLQJ
WRPDNH FRPPHQWVWKDWVKRFNHGKLV FRXQWU\PHQ WKH &RQJUHVV ZRUNHUV
DQG  HYHQ  *DQGKL  7KH  ODWWHU  WZR  FODLPHG  WKDW  LW  GLVWRUWHG  ZKDW  *DQGKL
DFWXDOO\  VDLG  RQ  D  UDQJH  RI  WRSLFV  DQG  IDOVHO\  UHSXGLDWHG  WKH  4XLW  ,QGLD
PRYHPHQW>@

*DQGKLZDVUHOHDVHGEHIRUHWKHHQGRIWKHZDURQ0D\EHFDXVHRIKLV
IDLOLQJKHDOWKDQGQHFHVVDU\VXUJHU\WKH5DMGLGQRWZDQWKLPWRGLHLQ
*DQGKLLQWKH\HDUKH SULVRQ  DQG  HQUDJH  WKH  QDWLRQ  +H  FDPH  RXW  RI  GHWHQWLRQ  WR  DQ  DOWHUHG
ODXQFKHG4XLW,QGLDPRYHPHQW SROLWLFDOVFHQH±WKH0XVOLP/HDJXHIRUH[DPSOHZKLFKDIHZ\HDUVHDUOLHU
KDGDSSHDUHGPDUJLQDOQRZRFFXSLHGWKHFHQWUHRIWKHSROLWLFDOVWDJH>@
DQG  WKH  WRSLF  RI  0XKDPPDG  $OL  -LQQDK
V  FDPSDLJQ  IRU  3DNLVWDQ  ZDV  D
PDMRUWDONLQJSRLQW*DQGKLDQG-LQQDKKDGH[WHQVLYHFRUUHVSRQGHQFHDQGWKHWZRPHQPHWVHYHUDOWLPHV RYHUD
SHULRGRIWZRZHHNVLQ6HSWHPEHUZKHUH*DQGKLLQVLVWHGRQDXQLWHGUHOLJLRXVO\SOXUDODQGLQGHSHQGHQW,QGLD
ZKLFKLQFOXGHG0XVOLPVDQGQRQ0XVOLPVRIWKH,QGLDQVXEFRQWLQHQWFRH[LVWLQJ-LQQDKUHMHFWHGWKLVSURSRVDODQG
LQVLVWHGLQVWHDGIRUSDUWLWLRQLQJWKHVXEFRQWLQHQWRQUHOLJLRXVOLQHVWRFUHDWHDVHSDUDWH0XVOLP,QGLDODWHU3DNLVWDQ
>@>@7KHVHGLVFXVVLRQVFRQWLQXHGWKURXJK>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

:KLOH  WKH  OHDGHUV  RI  &RQJUHVV  ODQJXLVKHG  LQ  MDLO  WKH  RWKHU  SDUWLHV  VXSSRUWHG  WKH  ZDU  DQG  JDLQHG  RUJDQL]DWLRQDO
VWUHQJWK  8QGHUJURXQG  SXEOLFDWLRQV  IODLOHG  DW  WKH  UXWKOHVV  VXSSUHVVLRQ  RI  &RQJUHVV  EXW  LW  KDG  OLWWOH  FRQWURO  RYHU
HYHQWV>@$WWKHHQGRIWKHZDUWKH%ULWLVKJDYHFOHDULQGLFDWLRQVWKDWSRZHUZRXOGEHWUDQVIHUUHGWR,QGLDQKDQGV$W
WKLV  SRLQW  *DQGKL  FDOOHG  RII  WKH  VWUXJJOH  DQG  DURXQG    SROLWLFDO  SULVRQHUV  ZHUH  UHOHDVHG  LQFOXGLQJ  WKH
&RQJUHVV
VOHDGHUVKLS>@

3DUWLWLRQDQGLQGHSHQGHQFH
*DQGKL  RSSRVHG  SDUWLWLRQ  RI  WKH  ,QGLDQ  VXEFRQWLQHQW  DORQJ  UHOLJLRXV
OLQHV>@7KH,QGLDQ1DWLRQDO&RQJUHVVDQG*DQGKLFDOOHGIRUWKH%ULWLVKWR
4XLW  ,QGLD  +RZHYHU  WKH  0XVOLP  /HDJXH  GHPDQGHG  'LYLGH  DQG  4XLW
,QGLD>@>@  *DQGKL  VXJJHVWHG  DQ  DJUHHPHQW  ZKLFK  UHTXLUHG  WKH
&RQJUHVVDQGWKH0XVOLP/HDJXHWRFRRSHUDWHDQGDWWDLQLQGHSHQGHQFH
XQGHUDSURYLVLRQDOJRYHUQPHQWWKHUHDIWHUWKHTXHVWLRQRISDUWLWLRQFRXOG
EHUHVROYHGE\DSOHELVFLWHLQWKHGLVWULFWVZLWKD0XVOLPPDMRULW\>@
*DQGKLZLWK0XKDPPDG$OL-LQQDK
-LQQDKUHMHFWHG*DQGKL
VSURSRVDODQGFDOOHGIRU'LUHFW$FWLRQ'D\RQ
LQ
$XJXVWWRSUHVV0XVOLPVWRSXEOLFO\JDWKHULQFLWLHVDQGVXSSRUWKLV
SURSRVDOIRUSDUWLWLRQRI,QGLDQVXEFRQWLQHQWLQWRD0XVOLPVWDWHDQGQRQ
0XVOLPVWDWH+XVH\Q6KDKHHG6XKUDZDUG\WKH0XVOLP/HDJXH&KLHI0LQLVWHURI%HQJDO±QRZ%DQJODGHVKDQG:HVW
%HQJDOJDYH&DOFXWWD
VSROLFHVSHFLDOKROLGD\WRFHOHEUDWHWKH'LUHFW$FWLRQ'D\>@7KH'LUHFW$FWLRQ'D\WULJJHUHGD
PDVVPXUGHURI&DOFXWWD+LQGXVDQGWKHWRUFKLQJRIWKHLUSURSHUW\DQGKROLGD\LQJSROLFHZHUHPLVVLQJWRFRQWDLQRU
VWRS WKH FRQIOLFW>@ 7KH %ULWLVK JRYHUQPHQWGLG QRWRUGHULWV DUP\WR PRYH LQ WR FRQWDLQ WKH YLROHQFH>@  7KH
YLROHQFHRQ'LUHFW$FWLRQ'D\OHGWRUHWDOLDWRU\YLROHQFHDJDLQVW0XVOLPVDFURVV,QGLD7KRXVDQGVRI+LQGXVDQG
0XVOLPVZHUHPXUGHUHGDQGWHQVRIWKRXVDQGVZHUHLQMXUHGLQWKHF\FOHRIYLROHQFHLQWKHGD\VWKDWIROORZHG>@
*DQGKLYLVLWHGWKHPRVWULRWSURQHDUHDVWRDSSHDODVWRSWRWKHPDVVDFUHV>@

$UFKLEDOG:DYHOOWKH9LFHUR\DQG*RYHUQRU*HQHUDORI%ULWLVK,QGLDIRU
WKUHH\HDUVWKURXJK)HEUXDU\KDGZRUNHGZLWK*DQGKLDQG-LQQDKWR
ILQGDFRPPRQJURXQGEHIRUHDQGDIWHUDFFHSWLQJ,QGLDQLQGHSHQGHQFHLQ
SULQFLSOH:DYHOOFRQGHPQHG*DQGKL
VFKDUDFWHUDQGPRWLYHVDVZHOODVKLV
LGHDV  :DYHOO  DFFXVHG  *DQGKL  RI  KDUERXULQJ  WKH  VLQJOH  PLQGHG  LGHD  WR
RYHUWKURZ%ULWLVKUXOHDQGLQIOXHQFHDQGWRHVWDEOLVKD+LQGXUDMDQG
FDOOHG*DQGKLDPDOLJQDQWPDOHYROHQWH[FHHGLQJO\VKUHZGSROLWLFLDQ>@
:DYHOOIHDUHGDFLYLOZDURQWKH,QGLDQVXEFRQWLQHQWDQGGRXEWHG*DQGKL
ZRXOGEHDEOHWRVWRSLW>@
*DQGKLLQZLWK/RUG/RXLV
7KH%ULWLVKUHOXFWDQWO\DJUHHGWRJUDQWLQGHSHQGHQFHWRWKHSHRSOHRIWKH 0RXQWEDWWHQ%ULWDLQ
VODVW9LFHUR\RI
,QGLDQ  VXEFRQWLQHQW  EXW  DFFHSWHG  -LQQDK
V  SURSRVDO  RI  SDUWLWLRQLQJ  WKH ,QGLDDQGKLVZLIH(GZLQD
0RXQWEDWWHQ
ODQGLQWR3DNLVWDQDQG,QGLD*DQGKLZDVLQYROYHGLQWKHILQDOQHJRWLDWLRQV
EXW6WDQOH\:ROSHUWVWDWHVWKHSODQWRFDUYHXS%ULWLVK,QGLDZDVQHYHU
DSSURYHGRIRUDFFHSWHGE\*DQGKL>@

7KHSDUWLWLRQZDVFRQWURYHUVLDODQGYLROHQWO\GLVSXWHG0RUHWKDQKDOIDPLOOLRQZHUHNLOOHGLQUHOLJLRXVULRWVDV
PLOOLRQWRPLOOLRQQRQ0XVOLPV+LQGXV6LNKVPRVWO\PLJUDWHGIURP3DNLVWDQLQWR,QGLDDQG0XVOLPVPLJUDWHG
IURP,QGLDLQWR3DNLVWDQDFURVVWKHQHZO\FUHDWHGERUGHUVRI,QGLD:HVW3DNLVWDQDQG(DVW3DNLVWDQ>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

*DQGKLVSHQWWKHGD\RILQGHSHQGHQFHQRWFHOHEUDWLQJWKHHQGRIWKH%ULWLVKUXOHEXWDSSHDOLQJIRUSHDFHDPRQJKLV
FRXQWU\PHQE\IDVWLQJDQGVSLQQLQJLQ&DOFXWWDRQ$XJXVW7KHSDUWLWLRQKDGJULSSHGWKH,QGLDQVXEFRQWLQHQW
ZLWKUHOLJLRXVYLROHQFHDQGWKHVWUHHWVZHUHILOOHGZLWKFRUSVHV>@ 6RPHZULWHUVFUHGLW*DQGKL
VIDVWLQJDQGSURWHVWV
IRUVWRSSLQJWKHUHOLJLRXVULRWVDQGFRPPXQDOYLROHQFH2WKHUVGRQRW$UFKLEDOG:DYHOOIRUH[DPSOHXSRQOHDUQLQJRI
*DQGKL
VDVVDVVLQDWLRQFRPPHQWHG,DOZD\VWKRXJKWKH>*DQGKL@KDGPRUHRIPDOHYROHQFHWKDQEHQHYROHQFHLQKLP
EXWZKRDP,WRMXGJHDQGKRZFDQDQ(QJOLVKPDQHVWLPDWHD+LQGX">@

$VVDVVLQDWLRQ
$WSPRQ-DQXDU\*DQGKLZDVZLWKKLVJUDQGQLHFHVLQWKHJDUGHQRIWKHIRUPHU%LUOD+RXVHQRZ*DQGKL
6PULWLRQKLVZD\WRDGGUHVVDSUD\HUPHHWLQJZKHQ1DWKXUDP*RGVHILUHGWKUHHEXOOHWVIURPD%HUHWWD0 PP
&RUWRSLVWROLQWRKLVFKHVWDWSRLQWEODQNUDQJH$FFRUGLQJWRVRPHDFFRXQWV*DQGKLGLHGRQWKHVSRW>@>@,QRWKHU
DFFRXQWVVXFKDVRQHSUHSDUHGE\DQH\HZLWQHVVMRXUQDOLVW*DQGKLZDVFDUULHGLQWRWKH%LUOD+RXVHLQWRDEHGURRP
7KHUHKHGLHGDERXWPLQXWHVODWHUDVRQHRI*DQGKL
VIDPLO\PHPEHUVUHDGYHUVHVIURP+LQGXVFULSWXUHV>@

3ULPH0LQLVWHU-DZDKDUODO1HKUXDGGUHVVHGKLVFRXQWU\PHQRYHUWKH$OO,QGLD5DGLRVD\LQJ>@

)ULHQGVDQGFRPUDGHVWKHOLJKWKDVJRQHRXWRIRXUOLYHVDQGWKHUHLVGDUNQHVVHYHU\ZKHUHDQG,GRQRW
TXLWHNQRZZKDWWRWHOO\RXRUKRZWRVD\LW2XUEHORYHGOHDGHU%DSXDVZHFDOOHGKLPWKHIDWKHURIWKH
QDWLRQLVQRPRUH3HUKDSV,DPZURQJWRVD\WKDWQHYHUWKHOHVVZHZLOOQRWVHHKLPDJDLQDVZHKDYH
VHHQKLPIRUWKHVHPDQ\\HDUVZHZLOOQRWUXQWRKLPIRUDGYLFHRUVHHNVRODFHIURPKLPDQGWKDWLVD
WHUULEOHEORZQRWRQO\IRUPHEXWIRUPLOOLRQVDQGPLOOLRQVLQWKLVFRXQWU\>@

VDVVDVVLQ *RGVHPDGHQRDWWHPSWWRHVFDSH DQGZDVVHL]HG E\ WKH
V5HG)RUW
0HPRULDOZKHUH*DQGKLZDV
VSDUWLWLRQLQWR3DNLVWDQDQG,QGLD*RGVH
DVVDVVLQDWHGLQ+LV
VW\OLVHGIRRWVWHSVOHDGWRWKH
PHPRULDO
*DQGKL
ZLWQHVVHV+HZDVDUUHVWHG,QWKHZHHNVWKDWIROORZHGKLVFROODERUDWRUVZHUH
DUUHVWHG  DV  ZHOO>@>@  *RGVH  ZDV  D  +LQGX  QDWLRQDOLVW  ZLWK  OLQNV  WR  WKH
H[WUHPLVW+LQGX0DKDVDEKD>@7KH\ZHUHWULHGLQFRXUWDW'HOKL
$W  KLV  WULDO  *RGVH  GLG  QRW  GHQ\  WKH  FKDUJHV  QRU  H[SUHVV  DQ\  UHPRUVH
$FFRUGLQJ  WR &ODXGH  0DUNRYLWV  D )UHQFK  KLVWRULDQ  QRWHG  IRU KLV  VWXGLHV RI
FRORQLDO,QGLD*RGVHVWDWHGWKDWKHNLOOHG*DQGKLEHFDXVHRIKLVFRPSODFHQFH
WRZDUGV0XVOLPVKROGLQJ*DQGKLUHVSRQVLEOHIRUWKHIUHQ]\RIYLROHQFHDQG
VXIIHULQJVGXULQJWKHVXEFRQWLQHQW
DFFXVHG*DQGKLRIVXEMHFWLYLVPDQGRIDFWLQJDVLIRQO\KHKDGDPRQRSRO\RI
WKHWUXWK*RGVHZDVIRXQGJXLOW\DQGH[HFXWHGLQ>@>@

*DQGKL
VGHDWKZDVPRXUQHGQDWLRQZLGH2YHUWZRPLOOLRQSHRSOHMRLQHGWKH
ILYHPLOHORQJIXQHUDOSURFHVVLRQWKDWWRRNRYHUILYHKRXUVWRUHDFK5DM*KDW
IURP%LUODKRXVHZKHUHKHZDVDVVDVVLQDWHG*DQGKL
VERG\ZDVWUDQVSRUWHGRQDZHDSRQVFDUULHUZKRVHFKDVVLVZDV
GLVPDQWOHGRYHUQLJKWWRDOORZDKLJKIORRUWREHLQVWDOOHGVRWKDWSHRSOHFRXOGFDWFKDJOLPSVHRIKLVERG\7KHHQJLQH
RIWKHYHKLFOHZDVQRWXVHGLQVWHDGIRXUGUDJURSHVPDQQHGE\SHRSOHHDFKSXOOHGWKHYHKLFOH >@ $OO,QGLDQ
RZQHG  HVWDEOLVKPHQWV  LQ  /RQGRQ  UHPDLQHG  FORVHG  LQ  PRXUQLQJ  DV  WKRXVDQGV  RI  SHRSOH  IURP  DOO  IDLWKV  DQG
GHQRPLQDWLRQVDQG,QGLDQVIURPDOORYHU%ULWDLQFRQYHUJHGDW,QGLD+RXVHLQ/RQGRQ>@

*DQGKL
VDVVDVVLQDWLRQGUDPDWLFDOO\FKDQJHGWKHSROLWLFDOODQGVFDSH1HKUXEHFDPHKLVSROLWLFDOKHLU$FFRUGLQJWR
0DUNRYLWV  ZKLOH  *DQGKL  ZDV  DOLYH  3DNLVWDQ
V  GHFODUDWLRQ  WKDW  LW  ZDV  D  0XVOLP  VWDWH  KDG  OHG  ,QGLDQ  JURXSV  WR

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

GHPDQG  WKDW  LW  EH  GHFODUHG  D  +LQGX  VWDWH>@  1HKUX  XVHG  *DQGKL

V
PDUW\UGRP  DV  D  SROLWLFDO  ZHDSRQ  WR  VLOHQFH  DOO  DGYRFDWHV  RI  +LQGX
QDWLRQDOLVP  DV  ZHOO  DV  KLV  SROLWLFDO  FKDOOHQJHUV  +H  OLQNHG  *DQGKL
V
DVVDVVLQDWLRQWRSROLWLFVRIKDWUHGDQGLOOZLOO>@

$FFRUGLQJWR*XKD1HKUXDQGKLV&RQJUHVVFROOHDJXHVFDOOHGRQ,QGLDQVWR
KRQRXU*DQGKL
VPHPRU\DQGHYHQPRUHKLVLGHDOV>@>@1HKUXXVHGWKH
DVVDVVLQDWLRQWRFRQVROLGDWHWKHDXWKRULW\RIWKHQHZ,QGLDQVWDWH*DQGKL
V
GHDWKKHOSHGPDUVKDOVXSSRUWIRUWKHQHZJRYHUQPHQWDQGOHJLWLPLVHWKH *DQGKL
VIXQHUDOZDVPDUNHGE\
&RQJUHVV  3DUW\
V  FRQWURO  OHYHUDJHG E\ WKH  PDVVLYH  RXWSRXULQJ  RI  +LQGX PLOOLRQVRI,QGLDQV>@
H[SUHVVLRQV RI  JULHI  IRU  D PDQ ZKR  KDG  LQVSLUHG WKHP  IRU  GHFDGHV  7KH
JRYHUQPHQW  VXSSUHVVHG  WKH  566  WKH  0XVOLP  1DWLRQDO  *XDUGV  DQG  WKH
.KDNVDUVZLWKVRPHDUUHVWV>@

)RU\HDUVDIWHUWKHDVVDVVLQDWLRQVWDWHV0DUNRYLWV*DQGKL
VVKDGRZORRPHGODUJHRYHUWKHSROLWLFDOOLIHRIWKHQHZ
,QGLDQ  5HSXEOLF  7KH  JRYHUQPHQW  TXHOOHG  DQ\  RSSRVLWLRQ  WR  LWV  HFRQRPLF  DQG  VRFLDO  SROLFLHV  GHVSLWH  WKH\  EHLQJ
FRQWUDU\WR*DQGKL
VLGHDVE\UHFRQVWUXFWLQJ*DQGKL
VLPDJHDQGLGHDOV>@

)XQHUDODQGPHPRULDOV
*DQGKLZDVFUHPDWHGLQDFFRUGDQFHZLWK+LQGXWUDGLWLRQ*DQGKL
VDVKHVZHUHSRXUHGLQWRXUQVZKLFKZHUHVHQW
DFURVV,QGLDIRUPHPRULDOVHUYLFHV>@0RVWRIWKHDVKHVZHUHLPPHUVHGDWWKH6DQJDPDW$OODKDEDGRQ)HEUXDU\
EXWVRPHZHUHVHFUHWO\WDNHQDZD\,Q7XVKDU*DQGKLLPPHUVHGWKHFRQWHQWVRIRQHXUQIRXQGLQDEDQN
YDXOWDQGUHFODLPHGWKURXJKWKHFRXUWVDWWKH6DQJDPDW$OODKDEDG>@>@6RPHRI*DQGKL
VDVKHVZHUHVFDWWHUHGDW
WKHVRXUFHRIWKH1LOH5LYHUQHDU-LQMD8JDQGDDQGDPHPRULDOSODTXHPDUNVWKHHYHQW2Q-DQXDU\WKH
FRQWHQWVRIDQRWKHUXUQZHUHLPPHUVHGDW*LUJDXP&KRZSDWW\$QRWKHUXUQLVDWWKHSDODFHRIWKH$JD.KDQLQ3XQH
ZKHUH*DQGKLZDVKHOGDVDSROLWLFDOSULVRQHUIURPWRDQGDQRWKHULQWKH6HOI5HDOL]DWLRQ)HOORZVKLS/DNH
6KULQHLQ/RV$QJHOHV>@>@

7KH%LUOD+RXVHVLWHZKHUH*DQGKLZDVDVVDVVLQDWHGLVQRZDPHPRULDOFDOOHG*DQGKL6PULWL7KHSODFHQHDU<DPXQD
ULYHU  ZKHUH  KH  ZDV FUHPDWHG  LV  WKH  5ŅM  *KŅW  PHPRULDO LQ  1HZ  'HOKL>@  $  EODFN  PDUEOH  SODWIRUP  LW  EHDUV  WKH
HSLJUDSK+ŋ5ŅPD'HYDQDJDULĞĸ ēĭđRU+H\5DDP7KHVHDUHZLGHO\EHOLHYHGWREH*DQGKL
VODVWZRUGVDIWHUKH
ZDVVKRWWKRXJKWKHYHUDFLW\RIWKLVVWDWHPHQWKDVEHHQGLVSXWHG>@

3ULQFLSOHVSUDFWLFHVDQGEHOLHIV
*DQGKL
VVWDWHPHQWVOHWWHUVDQGOLIHKDYHDWWUDFWHGPXFKSROLWLFDODQGVFKRODUO\DQDO\VLVRIKLVSULQFLSOHVSUDFWLFHVDQG
EHOLHIVLQFOXGLQJZKDWLQIOXHQFHGKLP6RPHZULWHUVSUHVHQWKLPDVDSDUDJRQRIHWKLFDOOLYLQJDQGSDFLILVPZKLOH
RWKHUV  SUHVHQW  KLP  DV  D  PRUH  FRPSOH[  FRQWUDGLFWRU\  DQG  HYROYLQJ  FKDUDFWHU  LQIOXHQFHG  E\  KLV  FXOWXUH  DQG
FLUFXPVWDQFHV>@>@

,QIOXHQFHV
*DQGKLJUHZXSLQD+LQGXDQG-DLQUHOLJLRXVDWPRVSKHUHLQKLVQDWLYH*XMDUDWZKLFKZHUHKLVSULPDU\LQIOXHQFHVEXW
KH ZDV DOVR LQIOXHQFHG E\ KLV SHUVRQDO UHIOHFWLRQV  DQG OLWHUDWXUH  RI +LQGX %KDNWL VDLQWV  $GYDLWD 9HGDQWD ,VODP
%XGGKLVP&KULVWLDQLW\DQGWKLQNHUVVXFKDV7ROVWR\5XVNLQDQG7KRUHDX>@>@$WDJHKHGHFODUHGKLPVHOIWREH

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

$GYDLWLVW+LQGXLQKLVUHOLJLRXVSHUVXDVLRQEXWDGGHGWKDWKHVXSSRUWHG
'YDLWLVWYLHZSRLQWVDQGUHOLJLRXVSOXUDOLVP>@>@>@

*DQGKLZDVLQIOXHQFHGE\KLVGHYRXW9DLVKQDYD+LQGXPRWKHUWKHUHJLRQDO
+LQGXWHPSOHVDQGVDLQWWUDGLWLRQZKLFKFRH[LVWHGZLWK-DLQWUDGLWLRQLQ
*XMDUDW>@>@ +LVWRULDQ5%&ULEEVWDWHVWKDW*DQGKL
VWKRXJKWHYROYHG
RYHU  WLPH  ZLWK  KLV  HDUO\  LGHDV  EHFRPLQJ  WKH  FRUH  RU  VFDIIROGLQJ  IRU  KLV
PDWXUH  SKLORVRSK\  +H  FRPPLWWHG  KLPVHOI  HDUO\  WR  WUXWKIXOQHVV
WHPSHUDQFHFKDVWLW\DQGYHJHWDULDQLVP>@

*DQGKL
V/RQGRQOLIHVW\OHLQFRUSRUDWHGWKHYDOXHVKHKDGJURZQXSZLWK
*DQGKLZLWKSRHW5DELQGUDQDWK
:KHQKHUHWXUQHGWR,QGLDLQKLVRXWORRNZDVSDURFKLDODQGKHFRXOG
7DJRUH
QRWPDNHDOLYLQJDVDODZ\HU7KLVFKDOOHQJHGKLVEHOLHIWKDWSUDFWLFDOLW\
DQGPRUDOLW\QHFHVVDULO\FRLQFLGHG%\PRYLQJLQWR6RXWK$IULFDKH
IRXQGDVROXWLRQWRWKLVSUREOHPDQGGHYHORSHGWKHFHQWUDOFRQFHSWVRIKLVPDWXUHSKLORVRSK\>@

$FFRUGLQJWR%KLNKX3DUHNKWKUHHERRNVWKDWLQIOXHQFHG*DQGKLPRVWLQ6RXWK$IULFDZHUH:LOOLDP6DOWHU
V (WKLFDO
5HOLJLRQ+HQU\'DYLG7KRUHDX
V2QWKH'XW\RI&LYLO'LVREHGLHQFHDQG/HR7ROVWR\
V7KH.LQJGRPRI
*RG,V:LWKLQ<RX5XVNLQLQVSLUHGKLVGHFLVLRQWROLYHDQDXVWHUHOLIHRQDFRPPXQHDWILUVWRQWKH3KRHQL[
)DUPLQ1DWDODQGWKHQRQWKH7ROVWR\)DUPMXVWRXWVLGH-RKDQQHVEXUJ6RXWK$IULFD>@7KHPRVWSURIRXQGLQIOXHQFH
RQ*DQGKLZHUHWKRVHIURP+LQGXLVP&KULVWLDQLW\DQG-DLQLVPVWDWHV3DUHNKZLWKKLVWKRXJKWVLQKDUPRQ\ZLWKWKH
FODVVLFDO,QGLDQWUDGLWLRQVVSHFLDOO\WKH$GYDLWDRUPRQLVWLFWUDGLWLRQ>@

$FFRUGLQJWR,QGLUD&DUUDQGRWKHUV*DQGKLZDVLQIOXHQFHGE\9DLVKQDYLVP-DLQLVPDQG$GYDLWD9HGDQWD>@>@
%DONULVKQD*RNKDOHVWDWHVWKDW*DQGKLZDVLQIOXHQFHGE\+LQGXLVPDQG-DLQLVPDQGKLVVWXGLHVRI6HUPRQRQWKH
0RXQWRI&KULVWLDQLW\5XVNLQDQG7ROVWR\>@

$GGLWLRQDOWKHRULHVRISRVVLEOHLQIOXHQFHVRQ*DQGKLKDYHEHHQSURSRVHG)RUH[DPSOHLQ1$7RRWKLVWDWHG
WKDW*DQGKLZDVLQIOXHQFHGE\WKHUHIRUPVDQGWHDFKLQJVRIWKH6ZDPLQDUD\DQWUDGLWLRQRI+LQGXLVP$FFRUGLQJWR
5D\PRQG:LOOLDPV7RRWKLPD\KDYHRYHUORRNHGWKHLQIOXHQFHRIWKH-DLQFRPPXQLW\DQGDGGVFORVHSDUDOOHOVGRH[LVW
LQSURJUDPVRIVRFLDOUHIRUPLQWKH6ZDPLQDUD\DQWUDGLWLRQDQGWKRVHRI*DQGKLEDVHGRQQRQYLROHQFHWUXWKWHOOLQJ
FOHDQOLQHVV  WHPSHUDQFH  DQG  XSOLIWPHQW  RI  WKH  PDVVHV>@>@  +LVWRULDQ  +RZDUG  VWDWHV  WKH  FXOWXUH  RI  *XMDUDW
LQIOXHQFHG*DQGKLDQGKLVPHWKRGV>@

7ROVWR\
$ORQJZLWKWKHERRNPHQWLRQHGDERYHLQ/HR7ROVWR\ZURWH$/HWWHU
WRD+LQGXZKLFKVDLGWKDWRQO\E\XVLQJORYHDVDZHDSRQWKURXJKSDVVLYH
UHVLVWDQFHFRXOGWKH,QGLDQSHRSOHRYHUWKURZFRORQLDOUXOH,Q*DQGKL
ZURWHWR7ROVWR\VHHNLQJDGYLFHDQGSHUPLVVLRQWRUHSXEOLVK$/HWWHUWRD
+LQGX  LQ  *XMDUDWL  7ROVWR\  UHVSRQGHG  DQG  WKH  WZR  FRQWLQXHG  D
FRUUHVSRQGHQFHXQWLO7ROVWR\
VGHDWKLQ7ROVWR\
VODVWOHWWHUZDVWR
*DQGKL>@ 7KHOHWWHUVFRQFHUQSUDFWLFDODQGWKHRORJLFDODSSOLFDWLRQVRI
QRQYLROHQFH>@ *DQGKLVDZKLPVHOIDGLVFLSOHRI7ROVWR\IRUWKH\DJUHHG 0RKDQGDV.*DQGKLDQGRWKHU
UHJDUGLQJ  RSSRVLWLRQ  WR  VWDWH  DXWKRULW\  DQG  FRORQLDOLVP  ERWK  KDWHG UHVLGHQWVRI7ROVWR\)DUP6RXWK
$IULFD
YLROHQFHDQGSUHDFKHGQRQUHVLVWDQFH+RZHYHUWKH\GLIIHUHGVKDUSO\RQ
SROLWLFDO  VWUDWHJ\  *DQGKL  FDOOHG  IRU  SROLWLFDO  LQYROYHPHQW  KH  ZDV  D

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

QDWLRQDOLVWDQGZDVSUHSDUHGWRXVHQRQYLROHQWIRUFH+HZDVDOVRZLOOLQJWRFRPSURPLVH>@ ,WZDVDW7ROVWR\)DUP
ZKHUH*DQGKLDQG+HUPDQQ.DOOHQEDFKV\VWHPDWLFDOO\WUDLQHGWKHLUGLVFLSOHVLQWKHSKLORVRSK\RIQRQYLROHQFH>@

6KULPDG5DMFKDQGUD
*DQGKLFUHGLWHG6KULPDG5DMFKDQGUDDSRHWDQG-DLQSKLORVRSKHUDVKLVLQIOXHQWLDOFRXQVHOORU,Q0RGHUQ5HYLHZ
-XQH    *DQGKL  ZURWH  DERXW  WKHLU  ILUVW  HQFRXQWHU  LQ    DW  'U  3-  0HKWD
V  UHVLGHQFH  LQ  %RPED\  *DQGKL
H[FKDQJHGOHWWHUVZLWK5DMFKDQGUDZKHQKHZDVLQ6RXWK$IULFDUHIHUULQJWRKLPDV.DYLOLWHUDOO\SRHW,Q
*DQGKLZURWH6XFKZDVWKHPDQZKRFDSWLYDWHGP\KHDUWLQUHOLJLRXVPDWWHUVDVQRRWKHUPDQHYHUKDVWLOOQRZ>@

,KDYHVDLGHOVHZKHUHWKDWLQPRXOGLQJP\LQQHUOLIH7ROVWR\DQG5XVNLQYLHGZLWK.DYL%XW.DYL
VLQIOXHQFHZDV
XQGRXEWHGO\GHHSHULIRQO\EHFDXVH,KDGFRPHLQFORVHVWSHUVRQDOWRXFKZLWKKLP
>@

*DQGKLLQKLVDXWRELRJUDSK\FDOOHG5DMFKDQGUDKLVJXLGHDQGKHOSHUDQGKLVUHIXJH«LQPRPHQWVRIVSLULWXDO
FULVLV+HKDGDGYLVHG*DQGKLWREHSDWLHQWDQGWRVWXG\+LQGXLVPGHHSO\>@>@>@

5HOLJLRXVWH[WV
'XULQJKLVVWD\LQ6RXWK$IULFDDORQJZLWKVFULSWXUHVDQGSKLORVRSKLFDOWH[WVRI+LQGXLVPDQGRWKHU,QGLDQUHOLJLRQV
*DQGKLUHDGWUDQVODWHGWH[WVRI&KULVWLDQLW\VXFKDVWKH%LEOHDQG,VODPVXFKDVWKH4XUDQ>@ $4XDNHUPLVVLRQLQ
6RXWK$IULFDDWWHPSWHGWRFRQYHUWKLPWR&KULVWLDQLW\*DQGKLMRLQHGWKHPLQWKHLUSUD\HUVDQGGHEDWHG &KULVWLDQ
WKHRORJ\ZLWKWKHPEXWUHIXVHGFRQYHUVLRQVWDWLQJKHGLGQRWDFFHSWWKHWKHRORJ\WKHUHLQRUWKDW&KULVWZDVWKHRQO\
VRQRI*RG>@>@>@

+LVFRPSDUDWLYHVWXGLHVRIUHOLJLRQVDQGLQWHUDFWLRQZLWKVFKRODUVOHGKLPWRUHVSHFWDOOUHOLJLRQVDVZHOODVEHFRPH
FRQFHUQHGDERXWLPSHUIHFWLRQVLQDOORIWKHPDQGIUHTXHQWPLVLQWHUSUHWDWLRQV>@*DQGKLJUHZIRQGRI+LQGXLVPDQG
UHIHUUHGWRWKH%KDJDYDG*LWDDVKLVVSLULWXDOGLFWLRQDU\DQGJUHDWHVWVLQJOHLQIOXHQFHRQKLVOLIH>@>@>@

2QZDUVDQGQRQYLROHQFH

6XSSRUWIRU:DUV
*DQGKLSDUWLFLSDWHGLQ6RXWK$IULFDQZDUDJDLQVWWKH%RHUVRQWKH%ULWLVKVLGHLQ>@ %RWKWKH'XWFKVHWWOHUV
FDOOHG%RHUVDQGWKHLPSHULDO%ULWLVKDWWKDWWLPHGLVFULPLQDWHGDJDLQVWWKHFRORXUHGUDFHVWKH\FRQVLGHUHGDVLQIHULRU
DQG*DQGKLODWHUZURWHDERXWKLVFRQIOLFWHGEHOLHIVGXULQJWKH%RHUZDU+HVWDWHGWKDWZKHQWKHZDUZDVGHFODUHGP\
SHUVRQDOV\PSDWKLHVZHUHDOOZLWKWKH%RHUVEXWP\ OR\DOW\WRWKH%ULWLVKUXOHGURYHPHWRSDUWLFLSDWLRQZLWKWKH
%ULWLVKLQWKDWZDU$FFRUGLQJWR*DQGKLKHIHOWWKDWVLQFHKHZDVGHPDQGLQJKLVULJKWVDVD%ULWLVKFLWL]HQLWZDVDOVR
KLVGXW\WRVHUYHWKH%ULWLVKIRUFHVLQWKHGHIHQFHRIWKH%ULWLVK(PSLUH>@>@

'XULQJ:RUOG:DU,±QHDULQJWKHDJHRI*DQGKLVXSSRUWHGWKH%ULWLVKDQGLWVDOOLHGIRUFHVE\UHFUXLWLQJ

,QGLDQVWRMRLQWKH%ULWLVKDUP\H[SDQGLQJWKH,QGLDQFRQWLQJHQWIURPDERXWWRRYHUPLOOLRQ>@>@ +H
HQFRXUDJHGKLVSHRSOHWRILJKWRQRQHVLGHRIWKHZDULQ(XURSHDQG$IULFDDWWKHFRVWRIWKHLUOLYHV>@  3DFLILVWV
FULWLFLVHGDQGTXHVWLRQHG*DQGKLZKRGHIHQGHGWKHVHSUDFWLFHVE\VWDWLQJDFFRUGLQJWR6DQNDU*KRVHLWZRXOGEH
PDGQHVVIRUPHWRVHYHUP\FRQQHFWLRQZLWKWKHVRFLHW\WRZKLFK,EHORQJ>@  $FFRUGLQJWR.HLWK 5REELQV WKH
UHFUXLWPHQWHIIRUWZDVLQSDUWPRWLYDWHGE\WKH%ULWLVKSURPLVHWRUHFLSURFDWHWKHKHOSZLWKVZDUDMVHOIJRYHUQPHQW
WR,QGLDQVDIWHUWKHHQGRI:RUOG:DU,>@$IWHUWKHZDUWKH%ULWLVKJRYHUQPHQWRIIHUHGPLQRUUHIRUPVLQVWHDGZKLFK
GLVDSSRLQWHG*DQGKL>@ +HODXQFKHGKLV VDW\DJUDKDPRYHPHQWLQ  ,Q SDUDOOHO *DQGKL
V IHOORZPHQ  EHFDPH

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

VFHSWLFDORIKLVSDFLILVWLGHDVDQGZHUHLQVSLUHGE\WKHLGHDVRIQDWLRQDOLVPDQGDQWLLPSHULDOLVP>@

,QDHVVD\DIWHUWKH:RUOG:DU,*DQGKLZURWHZKHUHWKHUHLVRQO\DFKRLFHEHWZHHQFRZDUGLFHDQGYLROHQFH,
ZRXOGDGYLVHYLROHQFH5DKXO6DJDULQWHUSUHWV*DQGKL
VHIIRUWVWRUHFUXLWIRUWKH%ULWLVKPLOLWDU\GXULQJWKH:DUDV
*DQGKL
VEHOLHIWKDWDWWKDWWLPHLWZRXOGGHPRQVWUDWHWKDW,QGLDQVZHUHZLOOLQJWRILJKW)XUWKHULWZRXOGDOVRVKRZ
WKH%ULWLVKWKDWKLVIHOORZ,QGLDQVZHUHWKHLUVXEMHFWVE\FKRLFHUDWKHUWKDQRXWRIFRZDUGLFH,Q*DQGKLZURWH
WKDWDEVWLQHQFHIURPYLROHQFHLVHIIHFWLYHDQGWUXHIRUJLYHQHVVRQO\ZKHQRQHKDVWKHSRZHUWRSXQLVKQRWZKHQRQH
GHFLGHVQRWWRGRDQ\WKLQJEHFDXVHRQHLVKHOSOHVV >@

$IWHU:RUOG:DU,,HQJXOIHG%ULWDLQ*DQGKLDFWLYHO\FDPSDLJQHGWRRSSRVHDQ\KHOSWRWKH%ULWLVKZDUHIIRUWDQGDQ\
,QGLDQSDUWLFLSDWLRQLQWKHZDU$FFRUGLQJWR$UWKXU+HUPDQ*DQGKLEHOLHYHGWKDWKLVFDPSDLJQZRXOGVWULNHDEORZ
WRLPSHULDOLVP>@*DQGKL
VSRVLWLRQZDVQRWVXSSRUWHGE\PDQ\,QGLDQOHDGHUVDQGKLVFDPSDLJQDJDLQVWWKH%ULWLVK
ZDU  HIIRUW  ZDV  D  IDLOXUH  7KH  +LQGX  OHDGHU  7HM  %DKDGXU  6DSUX  GHFODUHG  LQ    VWDWHV  +HUPDQ  $  JRRG  PDQ\
&RQJUHVVOHDGHUVDUHIHGXSZLWKWKHEDUUHQSURJUDPRIWKH0DKDWPD>@ 2YHUPLOOLRQ,QGLDQVLJQRUHG*DQGKL
YROXQWHHUHGDQGMRLQHGRQWKH%ULWLVKVLGH7KH\IRXJKWDQGGLHGDVDSDUWRIWKHDOOLHGIRUFHVLQ(XURSH1RUWK$IULFD
DQGYDULRXVIURQWVRIWKH:RUOG:DU,,>@

7UXWKDQG6DW\DJUDKD
*DQGKLGHGLFDWHGKLVOLIHWRGLVFRYHULQJDQGSXUVXLQJWUXWKRU6DW\DDQG
FDOOHGKLVPRYHPHQWDVVDW\DJUDKDZKLFKPHDQVDSSHDOWRLQVLVWHQFHRQ
RUUHOLDQFHRQWKH7UXWK>@7KHILUVWIRUPXODWLRQRIWKHVDW\DJUDKDDVD
SROLWLFDO  PRYHPHQW  DQG  SULQFLSOH  RFFXUUHG  LQ    ZKLFK  KH  WDEOHG  DV
5HVROXWLRQRQ1RQFRRSHUDWLRQLQ6HSWHPEHUWKDW\HDUEHIRUHDVHVVLRQRI
WKH,QGLDQ&RQJUHVV,WZDVWKHVDW\DJUDKDIRUPXODWLRQDQGVWHSVWDWHV
'HQQLV'DOWRQWKDWGHHSO\UHVRQDWHGZLWKEHOLHIVDQGFXOWXUHRIKLVSHRSOH
HPEHGGHGKLPLQWRWKHSRSXODUFRQVFLRXVQHVVWUDQVIRUPLQJKLPTXLFNO\
LQWR0DKDWPD>@ 3ODTXHGLVSOD\LQJRQHRI*DQGKL
V
TXRWHVRQUXPRXU
*DQGKL  EDVHG  6DW\DJUDKD  RQ
WKH  9HGDQWLF  LGHDO  RI  VHOI
UHDOL]DWLRQ  DKLPVD  QRQYLROHQFH  YHJHWDULDQLVP  DQG  XQLYHUVDO  ORYH
:LOOLDP  %RUPDQ  VWDWHV  WKDW  WKH  NH\  WR  KLV  VDW\DJUDKD  LV  URRWHG  LQ  WKH
+LQGX8SDQLVKDGLFWH[WV>@ $FFRUGLQJWR,QGLUD&DUU*DQGKL
VLGHDVRQ
DKLPVDDQGVDW\DJUDKDZHUHIRXQGHGRQWKHSKLORVRSKLFDOIRXQGDWLRQVRI
$GYDLWD9HGDQWD>@ ,%UXFH:DWVRQVWDWHVWKDWVRPHRIWKHVHLGHDVDUH
IRXQG  QRW  RQO\  LQ  WUDGLWLRQV  ZLWKLQ  +LQGXLVP  EXW  DOVR  LQ  -DLQLVP  RU
*RGLVWUXWK7KHZD\WRWUXWKOLHV %XGGKLVP  SDUWLFXODUO\  WKRVH  DERXW  QRQYLROHQFH  YHJHWDULDQLVP  DQG
WKURXJKDKLPVDQRQYLROHQFH² XQLYHUVDO  ORYH  EXW  *DQGKL
V  V\QWKHVLV  ZDV  WR  SROLWLFLVH  WKHVH  LGHDV>@
6DEDUPDWL0DUFK *DQGKL
VFRQFHSWRIVDW\DDVDFLYLOPRYHPHQWVWDWHV*O\Q5LFKDUGVDUH
EHVWXQGHUVWRRGLQWKHFRQWH[WRIWKH+LQGXWHUPLQRORJ\RI'KDUPDDQG
‫ۿ‬WD>@

*DQGKLVWDWHGWKDWWKHPRVWLPSRUWDQWEDWWOHWRILJKWZDVRYHUFRPLQJKLVRZQGHPRQVIHDUVDQGLQVHFXULWLHV*DQGKL
VXPPDULVHGKLVEHOLHIVILUVWZKHQKHVDLG*RGLV7UXWK+HZRXOGODWHUFKDQJHWKLVVWDWHPHQWWR7UXWKLV*RG7KXV
VDW\DWUXWKLQ*DQGKL
VSKLORVRSK\LV*RG>@*DQGKLVWDWHV5LFKDUGVGHVFULEHGWKHWHUP*RGQRWDVDVHSDUDWH

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

SRZHUEXWDVWKH%HLQJ%UDKPDQ$WPDQRIWKH$GYDLWD9HGDQWDWUDGLWLRQDQRQGXDOXQLYHUVDOWKDWSHUYDGHVLQDOO

WKLQJVLQHDFKSHUVRQDQGDOOOLIH>@$FFRUGLQJWR1LFKRODV*LHUWKLVWR*DQGKLPHDQWWKHXQLW\RI*RGDQGKXPDQV
WKDWDOOEHLQJVKDYHWKHVDPHRQHVRXODQGWKHUHIRUHHTXDOLW\WKDWDWPDQH[LVWVDQGLVVDPHDVHYHU\WKLQJLQWKH
XQLYHUVHDKLPVDQRQYLROHQFHLVWKHYHU\QDWXUHRIWKLVDWPDQ>@

7KHHVVHQFHRI6DW\DJUDKDLVVRXOIRUFHDVDSROLWLFDOPHDQVUHIXVLQJWR
XVH  EUXWH  IRUFH  DJDLQVW WKH  RSSUHVVRU  VHHNLQJ  WR  HOLPLQDWH  DQWDJRQLVPV
EHWZHHQWKHRSSUHVVRUDQGWKHRSSUHVVHGDLPLQJWRWUDQVIRUPRUSXULI\
WKHRSSUHVVRU,WLVQRWLQDFWLRQEXWGHWHUPLQHGSDVVLYHUHVLVWDQFHDQGQRQ
FRRSHUDWLRQ  ZKHUH  VWDWHV  $UWKXU  +HUPDQ  ORYH  FRQTXHUV  KDWH>@  $
HXSKHPLVPVRPHWLPHVXVHGIRU6DW\DJUDKDLVWKDWLWLVDVLOHQWIRUFHRUD
VRXOIRUFHDWHUPDOVRXVHGE\0DUWLQ/XWKHU.LQJ-UGXULQJKLVIDPRXV
,+DYHD'UHDPVSHHFK,WDUPVWKHLQGLYLGXDOZLWKPRUDOSRZHUUDWKHU
WKDQSK\VLFDOSRZHU 6DW\DJUDKDLVDOVRWHUPHGDXQLYHUVDOIRUFHDVLW
HVVHQWLDOO\PDNHVQRGLVWLQFWLRQEHWZHHQNLQVPHQDQGVWUDQJHUV\RXQJ
DQGROGPDQDQGZRPDQIULHQGDQGIRH>@

*DQGKLZURWH7KHUHPXVWEHQRLPSDWLHQFHQREDUEDULW\QRLQVROHQFH
QRXQGXHSUHVVXUH,IZHZDQWWRFXOWLYDWHDWUXHVSLULWRIGHPRFUDF\ZH
FDQQRWDIIRUGWREHLQWROHUDQW,QWROHUDQFHEHWUD\VZDQWRIIDLWKLQRQH
V
FDXVH>@ &LYLO  GLVREHGLHQFH  DQG  QRQFRRSHUDWLRQ  DV  SUDFWLVHG  XQGHU
6DW\DJUDKD  DUH  EDVHG  RQ  WKH  ODZ  RI  VXIIHULQJ>@  D  GRFWULQH  WKDW  WKH *DQGKLSLFNLQJVDOWGXULQJ6DOW
HQGXUDQFHRIVXIIHULQJLVDPHDQVWRDQHQG7KLVHQGXVXDOO\LPSOLHVD 6DW\DJUDKDWRGHI\FRORQLDOODZ
PRUDOXSOLIWPHQWRUSURJUHVVRIDQLQGLYLGXDORUVRFLHW\7KHUHIRUHQRQFR JLYLQJVDOWFROOHFWLRQPRQRSRO\WR
RSHUDWLRQLQ6DW\DJUDKDLVLQIDFWDPHDQVWRVHFXUHWKHFRRSHUDWLRQRIWKH WKH%ULWLVK>@+LVVDW\DJUDKD
DWWUDFWHGYDVWQXPEHUVRI,QGLDQ
RSSRQHQWFRQVLVWHQWO\ZLWKWUXWKDQGMXVWLFH>@
PHQDQGZRPHQ>@
:KLOH  *DQGKL
V  LGHD  RI  VDW\DJUDKD  DV  D  SROLWLFDO  PHDQV  DWWUDFWHG  D
ZLGHVSUHDGIROORZLQJDPRQJ,QGLDQVWKHVXSSRUWZDVQRWXQLYHUVDO)RU
H[DPSOH 0XVOLP OHDGHUV VXFK DV -LQQDK RSSRVHGWKH VDW\DJUDKD LGHD  DFFXVHG  *DQGKL  WR  EH  UHYLYLQJ  +LQGXLVP
WKURXJKSROLWLFDODFWLYLVPDQGEHJDQHIIRUWWRFRXQWHU*DQGKLZLWK0XVOLPQDWLRQDOLVPDQGDGHPDQGIRU0XVOLP
KRPHODQG>@>@>@ 7KHXQWRXFKDELOLW\OHDGHU$PEHGNDULQ-XQHDIWHUKLVGHFLVLRQWRFRQYHUWWR%XGGKLVP
DQGDNH\DUFKLWHFWRIWKH&RQVWLWXWLRQRIPRGHUQ,QGLDGLVPLVVHG*DQGKL
VLGHDVDVORYHGE\EOLQG+LQGXGHYRWHHV
SULPLWLYHLQIOXHQFHGE\VSXULRXVEUHZRI7ROVWR\DQG5XVNLQDQGWKHUHLVDOZD\VVRPHVLPSOHWRQWRSUHDFKWKHP
>@>@ :LQVWRQ&KXUFKLOOFDULFDWXUHG*DQGKLDVDFXQQLQJKXFNVWHUVHHNLQJVHOILVKJDLQDQDVSLULQJGLFWDWRUDQG
DQDWDYLVWLFVSRNHVPDQRIDSDJDQ+LQGXLVP&KXUFKLOOVWDWHGWKDWWKHFLYLOGLVREHGLHQFHPRYHPHQWVSHFWDFOHRI
*DQGKLRQO\LQFUHDVHGWKHGDQJHUWRZKLFKZKLWHSHRSOHWKHUH>%ULWLVK,QGLD@DUHH[SRVHG>@

1RQYLROHQFH
$OWKRXJK*DQGKLZDVQRWWKHRULJLQDWRURIWKHSULQFLSOHRIQRQYLROHQFHKHZDVWKHILUVWWRDSSO\LWLQWKHSROLWLFDOILHOG
RQDODUJHVFDOH>@7KHFRQFHSWRIQRQYLROHQFHDKLPVDKDVDORQJKLVWRU\LQ,QGLDQUHOLJLRXVWKRXJKWZLWKLWEHLQJ
FRQVLGHUHGWKHKLJKHVWGKDUPDHWKLFDOYDOXHYLUWXHDSUHFHSWWREHREVHUYHGWRZDUGVDOOOLYLQJEHLQJVVDUYEKXWDDW
DOOWLPHVVDUYDGDLQDOOUHVSHFWVVDUYDWKDLQDFWLRQZRUGVDQGWKRXJKW>@*DQGKLH[SODLQVKLVSKLORVRSK\DQG
LGHDVDERXWDKLPVDDVDSROLWLFDOPHDQVLQKLVDXWRELRJUDSK\7KH6WRU\RI0\([SHULPHQWVZLWK7UXWK>@>@>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

*DQGKLZDVFULWLFLVHGIRUUHIXVLQJWRSURWHVWWKHKDQJLQJRI%KDJDW6LQJK
6XNKGHY8GKDP6LQJKDQG5DMJXUX>@>@+HZDVDFFXVHGRIDFFHSWLQJD
GHDOZLWKWKH.LQJ
VUHSUHVHQWDWLYH,UZLQWKDWUHOHDVHGFLYLOGLVREHGLHQFH
OHDGHUV  IURP  SULVRQ  DQG  DFFHSWHG WKH  GHDWK  VHQWHQFH  DJDLQVW  WKH  KLJKO\
SRSXODU  UHYROXWLRQDU\  %KDJDW  6LQJK  ZKR  DW  KLV  WULDO  KDG  UHSOLHG
5HYROXWLRQLVWKHLQDOLHQDEOHULJKWRIPDQNLQG>@

*DQGKL
VYLHZVFDPHXQGHUKHDY\FULWLFLVPLQ%ULWDLQZKHQLWZDVXQGHU
DWWDFNIURP1D]L*HUPDQ\DQGODWHUZKHQWKH+RORFDXVWZDVUHYHDOHG+H
WROGWKH%ULWLVKSHRSOHLQ,ZRXOGOLNH\RXWROD\GRZQWKHDUPV\RX
KDYH  DV  EHLQJ  XVHOHVV  IRU  VDYLQJ  \RX  RU  KXPDQLW\  <RX  ZLOO  LQYLWH  +HUU
+LWOHUDQG6LJQRU0XVVROLQLWRWDNHZKDWWKH\ZDQWRIWKHFRXQWULHV\RXFDOO
\RXUSRVVHVVLRQV,IWKHVHJHQWOHPHQFKRRVHWRRFFXS\\RXUKRPHV\RX
ZLOOYDFDWHWKHP,IWKH\GRQRWJLYH\RXIUHHSDVVDJHRXW\RXZLOODOORZ
\RXUVHOYHVPDQZRPDQDQGFKLOGWREHVODXJKWHUHGEXW\RXZLOOUHIXVHWR
RZH  DOOHJLDQFH  WR  WKHP>@ *HRUJH  2UZHOO  UHPDUNHG  WKDW  *DQGKL
V *DQGKLZLWKWH[WLOHZRUNHUVDW
'DUZHQ/DQFDVKLUH6HSWHPEHU
PHWKRGVFRQIURQWHG
DQROGIDVKLRQHGDQGUDWKHUVKDN\GHVSRWLVPZKLFK

WUHDWHG  KLP  LQ  D  IDLUO\  FKLYDOURXV  ZD\
  QRW  D  WRWDOLWDULDQ  3RZHU 
ZKHUH
SROLWLFDORSSRQHQWVVLPSO\GLVDSSHDU
>@

,QDSRVWZDULQWHUYLHZLQKHVDLG+LWOHUNLOOHGILYHPLOOLRQ-HZV,WLVWKHJUHDWHVWFULPHRIRXUWLPH%XWWKH
-HZVVKRXOGKDYHRIIHUHGWKHPVHOYHVWRWKHEXWFKHU
VNQLIH7KH\VKRXOGKDYHWKURZQWKHPVHOYHVLQWRWKHVHDIURP
FOLIIV  ,W  ZRXOG  KDYH  DURXVHG  WKH  ZRUOG  DQG  WKH  SHRSOH  RI  *HUPDQ\  $V  LW  LV  WKH\  VXFFXPEHG  DQ\ZD\  LQ  WKHLU
PLOOLRQV>@  *DQGKL  EHOLHYHG  WKLV  DFW  RI  FROOHFWLYH  VXLFLGH  LQ  UHVSRQVH  WR  WKH  +RORFDXVW  ZRXOG  KDYH  EHHQ
KHURLVP>@

2QLQWHUUHOLJLRXVUHODWLRQV

%XGGKLVWV-DLQVDQG6LNKV
*DQGKLEHOLHYHGWKDW%XGGKLVP-DLQLVPDQG6LNKLVPZHUHWUDGLWLRQVRI+LQGXLVPZLWKVKDUHGKLVWRU\ULWHVDQG
LGHDV$WRWKHUWLPHVKHDFNQRZOHGJHGWKDWKHNQHZOLWWOHDERXW%XGGKLVPRWKHUWKDQKLVUHDGLQJRI(GZLQ$UQROG
V
ERRNRQLW%DVHGRQWKDWERRNKHFRQVLGHUHG%XGGKLVPWREHDUHIRUPPRYHPHQWDQGWKH%XGGKDWREHD+LQGX>@
+HVWDWHGKHNQHZ-DLQLVPPXFKPRUHDQGKHFUHGLWHG-DLQVWRKDYHSURIRXQGO\LQIOXHQFHGKLP6LNKLVPWR*DQGKL
ZDVDQLQWHJUDOSDUWRI+LQGXLVPLQWKHIRUPRIDQRWKHUUHIRUPPRYHPHQW6LNKDQG%XGGKLVWOHDGHUVGLVDJUHHGZLWK
*DQGKLDGLVDJUHHPHQW*DQGKLUHVSHFWHGDVDGLIIHUHQFHRIRSLQLRQ>@>@

-HZV
$FFRUGLQJWR.XPDUDVZDP\ *DQGKLLQLWLDOO\VXSSRUWHG$UDEGHPDQGVZLWK UHVSHFWWR3DOHVWLQH+HMXVWLILHG WKLV
VXSSRUW  E\  LQYRNLQJ  ,VODP  VWDWLQJ  WKDW  QRQ0XVOLPV  FDQQRW  DFTXLUH  VRYHUHLJQ  MXULVGLFWLRQ  LQ  -D]LUDW  DO$UDE
$UDELDQ3HQLQVXOD>@ 7KHVHDUJXPHQWVVWDWHV.XPDUDVZDP\ZHUHDSDUWRIKLVSROLWLFDOVWUDWHJ\WRZLQ0XVOLP
VXSSRUWGXULQJWKH.KLODIDWPRYHPHQW,QSRVW.KLODIDWSHULRG*DQGKLQHLWKHUQHJDWHG-HZLVKGHPDQGVQRUGLGKH
XVH,VODPLFWH[WVRUKLVWRU\WRVXSSRUW0XVOLPFODLPVDJDLQVW,VUDHO*DQGKL
VVLOHQFHDIWHUWKH.KLODIDWSHULRGPD\
UHSUHVHQW  DQ  HYROXWLRQ  LQ  KLV  XQGHUVWDQGLQJ  RI  WKH  FRQIOLFWLQJ  UHOLJLRXV  FODLPV  RYHU  3DOHVWLQH  DFFRUGLQJ  WR

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

.XPDUDVZDP\>@,Q*DQGKLVSRNHLQIDYRXURI-HZLVKFODLPV,Q0DUFKKHVDLGWRWKH0HPEHURI%ULWLVK
3DUOLDPHQW6LGQH\6LOYHUPDQLIWKH$UDEVKDYHDFODLPWR3DOHVWLQHWKH-HZVKDYHDSULRUFODLPDSRVLWLRQYHU\
GLIIHUHQWIURPKLVHDUOLHUVWDQFH>@>@

*DQGKL GLVFXVVHG WKH  SHUVHFXWLRQ RI  WKH -HZV  LQ  *HUPDQ\  DQG WKH  HPLJUDWLRQ  RI -HZV  IURP (XURSH  WR 3DOHVWLQH
WKURXJKKLVOHQVRI 6DW\DJUDKD>@>@ ,Q*DQGKLGLVFXVVHG=LRQLVPZLWK KLVFORVH-HZLVKIULHQG+HUPDQQ
.DOOHQEDFK>@  +H  VDLG  WKDW  =LRQLVP  ZDV  QRW  WKH  ULJKW  DQVZHU  WR  WKH  SUREOHPV  IDFHG  E\  -HZV>@  DQG  LQVWHDG
UHFRPPHQGHG  6DW\DJUDKD  *DQGKL  WKRXJKW  WKH  =LRQLVWV  LQ  3DOHVWLQH  UHSUHVHQWHG  (XURSHDQ  LPSHULDOLVP  DQG  XVHG
YLROHQFHWRDFKLHYHWKHLUJRDOVKHDUJXHGWKDWWKH-HZVVKRXOGGLVFODLPDQ\LQWHQWLRQRIUHDOL]LQJWKHLUDVSLUDWLRQ
XQGHUWKHSURWHFWLRQRIDUPVDQGVKRXOGUHO\ZKROO\RQWKHJRRGZLOORI$UDEV1RH[FHSWLRQFDQSRVVLEO\EHWDNHQWR
WKHQDWXUDOGHVLUHRIWKH-HZVWRILQGDKRPHLQ3DOHVWLQH%XWWKH\PXVWZDLWIRULWVIXOILOOPHQWWLOO$UDERSLQLRQLVULSH
IRULW>@

,Q*DQGKLVWDWHGWKDWKLVV\PSDWKLHVDUHDOOZLWKWKH-HZV,KDYHNQRZQWKHPLQWLPDWHO\LQ6RXWK$IULFD6RPH
RIWKHPEHFDPHOLIHORQJFRPSDQLRQV3KLORVRSKHU0DUWLQ%XEHUZDVKLJKO\FULWLFDORI*DQGKL
VDSSURDFKDQGLQ
ZURWHDQRSHQOHWWHUWRKLPRQWKHVXEMHFW*DQGKLUHLWHUDWHGKLVVWDQFHWKDWWKH-HZVVHHNWRFRQYHUWWKH$UDEKHDUW
DQGXVHVDW\DJUDKDLQFRQIURQWLQJWKH$UDEVLQ>@  $FFRUGLQJ WR 6LPRQH 3DQWHU%ULFN  *DQGKL
V SROLWLFDO
SRVLWLRQRQ-HZLVK$UDEFRQIOLFWHYROYHGRYHUWKHSHULRGVKLIWLQJIURPDVXSSRUWIRUWKH$UDESRVLWLRQILUVW
DQGIRUWKH-HZLVKSRVLWLRQLQWKHV>@

&KULVWLDQV
*DQGKL  FULWLFLVHG  DV  ZHOO  DV  SUDLVHG  &KULVWLDQLW\  +H  ZDV  FULWLFDO  RI  &KULVWLDQ  PLVVLRQDU\  HIIRUWV  LQ  %ULWLVK  ,QGLD
EHFDXVHWKH\PL[HGPHGLFDORUHGXFDWLRQDVVLVWDQFHZLWKGHPDQGVWKDWWKHEHQHILFLDU\FRQYHUWWR&KULVWLDQLW\>@
$FFRUGLQJWR*DQGKLWKLVZDVQRWWUXHVHUYLFHEXW RQHGULYHQE\XOWHULRUPRWLYHRIOXULQJSHRSOHLQWRUHOLJLRXV
FRQYHUVLRQDQGH[SORLWLQJWKHHFRQRPLFDOO\RUPHGLFDOO\GHVSHUDWH,WGLGQRWOHDGWRLQQHUWUDQVIRUPDWLRQRUPRUDO
DGYDQFHRUWRWKH&KULVWLDQWHDFKLQJRIORYHEXWZDVEDVHGRQIDOVHRQHVLGHGFULWLFLVPVRIRWKHUUHOLJLRQVZKHQ
&KULVWLDQ  VRFLHWLHV  IDFHG  VLPLODU  SUREOHPV  LQ  6RXWK  $IULFD  DQG  (XURSH  ,W  OHG  WR  WKH  FRQYHUWHG  SHUVRQ  KDWLQJ  KLV
QHLJKERXUV  DQG  RWKHUV  UHOLJLRQV  LW  GLYLGHG  SHRSOH  UDWKHU  WKDQ  EULQJLQJ  WKHP  FORVHU  LQ  FRPSDVVLRQ  $FFRUGLQJ  WR
*DQGKLQRUHOLJLRXVWUDGLWLRQFRXOGFODLPDPRQRSRO\RYHUWUXWKRUVDOYDWLRQ>@>@ *DQGKLGLGQRWVXSSRUWODZV
WRSURKLELWPLVVLRQDU\DFWLYLW\EXWGHPDQGHGWKDW&KULVWLDQVVKRXOGILUVWXQGHUVWDQGWKHPHVVDJHRI-HVXVDQGWKHQ
VWULYHWROLYHZLWKRXWVWHUHRW\SLQJDQGPLVUHSUHVHQWLQJRWKHUUHOLJLRQV$FFRUGLQJWR*DQGKLWKHPHVVDJHRI-HVXV
ZDVQ
WWRKXPLOLDWHDQGLPSHULDOLVWLFDOO\UXOHRYHURWKHUSHRSOHFRQVLGHULQJWKHPLQIHULRURUVHFRQGFODVVRUVODYHVEXW
WKDWZKHQWKHKXQJU\DUHIHGDQGSHDFHFRPHVWRRXULQGLYLGXDODQGFROOHFWLYHOLIHWKHQ&KULVWLVERUQ>@

*DQGKLEHOLHYHGWKDWKLVORQJDFTXDLQWDQFHZLWK&KULVWLDQLW\KDGPDGHKLPOLNHLWDVZHOODVILQGLWLPSHUIHFW+HDVNHG
&KULVWLDQVWRVWRSKXPLOLDWLQJKLVFRXQWU\DQGKLVSHRSOHDVKHDWKHQVLGRODWRUVDQGRWKHUDEXVLYHODQJXDJHDQGWR
FKDQJHWKHLUQHJDWLYHYLHZVRI,QGLD+HEHOLHYHGWKDW&KULVWLDQVVKRXOGLQWURVSHFWRQWKHWUXHPHDQLQJRIUHOLJLRQ
DQGJHWDGHVLUHWRVWXG\DQGOHDUQIURP,QGLDQUHOLJLRQVLQWKHVSLULWRIXQLYHUVDOEURWKHUKRRG>@$FFRUGLQJWR(ULF
6KDUSH±DSURIHVVRURI5HOLJLRXV6WXGLHVWKRXJK*DQGKLZDVERUQLQD+LQGXIDPLO\DQGODWHUEHFDPH+LQGXE\
FRQYLFWLRQPDQ\&KULVWLDQVLQWLPHWKRXJKWRIKLPDVDQH[HPSODU\&KULVWLDQDQGHYHQDVDVDLQW>@

6RPHFRORQLDOHUD&KULVWLDQSUHDFKHUVDQGIDLWKIXOVFRQVLGHUHG*DQGKLDVDVDLQW>@>@>@%LRJUDSKHUVIURP)UDQFH
DQG  %ULWDLQ  KDYH  GUDZQ  SDUDOOHOV  EHWZHHQ  *DQGKL  DQG  &KULVWLDQ  VDLQWV  5HFHQW  VFKRODUV  TXHVWLRQ  WKHVH  URPDQWLF
ELRJUDSKLHVDQGVWDWHWKDW*DQGKLZDVQHLWKHUD&KULVWLDQILJXUHQRUPLUURUHGD&KULVWLDQVDLQW>@ *DQGKL
VOLIHLV
EHWWHUYLHZHGDVH[HPSOLI\LQJKLVEHOLHILQWKHFRQYHUJHQFHRIYDULRXVVSLULWXDOLWLHVRID&KULVWLDQDQGD+LQGXVWDWHV

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

0LFKDHOGH6DLQW&KHURQ>@

0XVOLPV
*DQGKLEHOLHYHGWKHUHZHUHPDWHULDOFRQWUDGLFWLRQVEHWZHHQ+LQGXLVPDQG,VODPDQGKHVKDUHGKLVWKRXJKWVRQWKH
4XUDQDQG0XVOLPVPDQ\WLPHV>@ +HVWDWHGLQIRUH[DPSOHWKDWKHKDGQRWFULWLFLVHGWKHWHDFKLQJVRIWKH
4XUDQEXWKHGLGFULWLFLVHWKHLQWHUSUHWHUVRI4XUDQ*DQGKLEHOLHYHGWKDWQXPHURXVLQWHUSUHWHUVKDYHLQWHUSUHWHGLWWR
ILW  WKHLU  SUHFRQFHLYHG  QRWLRQV>@  +H  EHOLHYHG  0XVOLPV  VKRXOG  ZHOFRPH  FULWLFLVP  RI  4XUDQ  EHFDXVH  HYHU\  WUXH
VFULSWXUHRQO\JDLQVIURPFULWLFLVP*DQGKLFULWLFLVHG0XVOLPVZKREHWUD\LQWROHUDQFHRIFULWLFLVPE\DQRQ0XVOLP
RIDQ\WKLQJUHODWHGWR,VODPVXFKDVWKHSHQDOW\RIVWRQLQJWRGHDWKXQGHU,VODPLFODZ7R*DQGKL,VODPKDVQRWKLQJ
WRIHDUIURPFULWLFLVPHYHQLILWEHXQUHDVRQDEOH>@>@ $FFRUGLQJWRKLP,VODPOLNHFRPPXQLVPZDVWRRTXLFNLQ
UHVRUWLQJWRYLROHQFH>@

2QHRIWKHVWUDWHJLHV*DQGKLDGRSWHGZDVWRZRUNZLWK0XVOLPOHDGHUVRISUHSDUWLWLRQ,QGLDWRRSSRVHWKH%ULWLVK
LPSHULDOLVP  LQ  DQG  RXWVLGH  WKH  ,QGLDQ  VXEFRQWLQHQW>@>@  $IWHU  WKH  :RUOG  :DU  ,  LQ  ±  KH  ZRQ  0XVOLP
OHDGHUVKLSVXSSRUWRI$OL%URWKHUVE\EDFNLQJWKH .KLODIDW0RYHPHQWLQIDYRXUWKH,VODPLF&DOLSKDQGKLVKLVWRULF
2WWRPDQ&DOLSKDWHDQGRSSRVLQJWKHVHFXODU,VODPVXSSRUWLQJ0XVWDID.HPDO$WDWUN%\$WDWXUNKDGHQGHG
WKH&DOLSKDWHWKH.KLODIDW0RYHPHQWZDVRYHUDQG0XVOLPVXSSRUWIRU*DQGKLKDGODUJHO\HYDSRUDWHG>@>@>@

,Q*DQGKLJDYHDQRWKHUUHDVRQWRZK\KHJRWLQYROYHGLQWKH.KLODIDWPRYHPHQWDQGWKH0LGGOH(DVWDIIDLUV
EHWZHHQ%ULWDLQDQGWKH2WWRPDQ(PSLUH*DQGKLH[SODLQHGWRKLVFRUHOLJLRQLVWV+LQGXWKDWKHV\PSDWKLVHGDQG
FDPSDLJQHGIRUWKH,VODPLFFDXVHQRWEHFDXVHKHFDUHGIRUWKH6XOWDQEXWEHFDXVH,ZDQWHGWRHQOLVWWKH0XVVDOPDQ
V
V\PSDWK\LQWKHPDWWHURIFRZSURWHFWLRQ>@ $FFRUGLQJWRWKHKLVWRULDQ01DHHP4XUHVKLOLNHWKHWKHQ,QGLDQ
0XVOLPOHDGHUVZKRKDGFRPELQHGUHOLJLRQDQGSROLWLFV*DQGKLWRRLPSRUWHGKLVUHOLJLRQLQWRKLVSROLWLFDOVWUDWHJ\
GXULQJWKH.KLODIDWPRYHPHQW>@

,QWKHV*DQGKLSRROHGLGHDVZLWKVRPH0XVOLPOHDGHUVZKRVRXJKWUHOLJLRXVKDUPRQ\OLNHKLPDQGRSSRVHGWKH
SURSRVHGSDUWLWLRQRI%ULWLVK,QGLDLQWR,QGLDDQG3DNLVWDQ)RUH[DPSOHKLVFORVHIULHQG%DGVKDK.KDQVXJJHVWHGWKDW
WKH\VKRXOGZRUNWRZDUGVRSHQLQJ+LQGXWHPSOHVIRU 0XVOLPSUD\HUVDQG,VODPLFPRVTXHVIRU+LQGXSUD\HUVWR
EULQJ WKH WZR UHOLJLRXVJURXSV FORVHU>@  *DQGKL  DFFHSWHG  WKLV  DQG EHJDQ  KDYLQJ  0XVOLP  SUD\HUV  UHDG LQ +LQGX
WHPSOHVWRSOD\KLVSDUWEXWZDVXQDEOHWRJHW+LQGXSUD\HUVUHDGLQPRVTXHV7KH+LQGXQDWLRQDOLVWJURXSVREMHFWHG
DQGEHJDQFRQIURQWLQJ*DQGKLIRUWKLVRQHVLGHGSUDFWLFHE\VKRXWLQJDQGGHPRQVWUDWLQJLQVLGHWKH+LQGXWHPSOHVLQ
WKHODVW\HDUVRIKLVOLIH>@>@>@

6XILVP
*DQGKLZDVDFTXDLQWHGZLWKWKH6XIL,VODP
V&KLVKWL2UGHUZKLFKKHGLVFRYHUHGGXULQJKLVVWD\LQ6RXWK$IULFD+H
DWWHQGHG.KDQTDKJDWKHULQJVWKHUHDW5LYHUVLGH$FFRUGLQJWR 0DUJDUHW&KDWWHUMHH*DQGKLDVD9DLVKQDYD+LQGX
VKDUHGYDOXHVVXFKDVKXPLOLW\GHYRWLRQDQGEURWKHUKRRGIRUWKHSRRUWKDWLVDOVRIRXQGLQ6XILVP>@>@

%XGGKLVWV-DLQVDQG6LNKV
*DQGKLEHOLHYHGWKDW%XGGKLVP-DLQLVPDQG6LNKLVPZHUHWUDGLWLRQVRI+LQGXLVPZLWKVKDUHGKLVWRU\ULWHVDQG
LGHDV$WRWKHUWLPHVKHDFNQRZOHGJHGWKDWKHNQHZOLWWOHDERXW%XGGKLVPRWKHUWKDQKLVUHDGLQJRI(GZLQ$UQROG
V
ERRNRQLW%DVHGRQWKDWERRNKHFRQVLGHUHG%XGGKLVPWREHDUHIRUPPRYHPHQWDQGWKH%XGGKDWREHD+LQGX>@
+HVWDWHGKHNQHZ-DLQLVPPXFKPRUHDQGKHFUHGLWHG-DLQVWRKDYHSURIRXQGO\LQIOXHQFHGKLP6LNKLVPWR*DQGKL
ZDVDQLQWHJUDOSDUWRI+LQGXLVPLQWKHIRUPRIDQRWKHUUHIRUPPRYHPHQW6LNKDQG%XGGKLVWOHDGHUVGLVDJUHHGZLWK

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

*DQGKLDGLVDJUHHPHQW*DQGKLUHVSHFWHGDVDGLIIHUHQFHRIRSLQLRQ>@>@

2QOLIHVRFLHW\DQGRWKHUDSSOLFDWLRQRIKLVLGHDV

9HJHWDULDQLVPIRRGDQGDQLPDOV
*DQGKLZDVEURXJKWXSDVDYHJHWDULDQE\KLVGHYRXW +LQGXPRWKHU>@>@ 7KHLGHD RIYHJHWDULDQLVP LV GHHSO\
LQJUDLQHGLQ+LQGX9DLVKQDYLVPDQG-DLQWUDGLWLRQVLQ,QGLDVXFKDVLQKLVQDWLYH*XMDUDWZKHUHPHDWLVFRQVLGHUHG
DVDIRUPRIIRRGREWDLQHGE\YLROHQFHWRDQLPDOV>@>@*DQGKL
VUDWLRQDOHIRUYHJHWDULDQLVPZDVODUJHO\DORQJWKRVH
IRXQGLQ+LQGXDQG-DLQWH[WV*DQGKLEHOLHYHGWKDWDQ\IRUPRIIRRGLQHVFDSDEO\KDUPVVRPHIRUPRIOLYLQJRUJDQLVP
EXWRQHVKRXOGVHHNWRXQGHUVWDQGDQGUHGXFHWKHYLROHQFHLQZKDWRQHFRQVXPHVEHFDXVHWKHUHLVHVVHQWLDOXQLW\RI
DOOOLIH>@>@

*DQGKLEHOLHYHGWKDWVRPHOLIHIRUPVDUHPRUHFDSDEOHRIVXIIHULQJDQGQRQYLROHQFHWRKLPPHDQWQRWKDYLQJWKH
LQWHQWDVZHOODVDFWLYHHIIRUWVWRPLQLPLVHKXUWLQMXU\RUVXIIHULQJWRDOOOLIHIRUPV>@*DQGKLH[SORUHGIRRGVRXUFHV
WKDWUHGXFHGYLROHQFHWRYDULRXVOLIHIRUPVLQWKHIRRGFKDLQ+HEHOLHYHGWKDWVODXJKWHULQJDQLPDOVLVXQQHFHVVDU\DV
RWKHUVRXUFHVRIIRRGVDUHDYDLODEOH>@+HDOVRFRQVXOWHGZLWKYHJHWDULDQLVPFDPSDLJQHUVGXULQJKLVOLIHWLPHVXFKDV
ZLWK+HQU\6WHSKHQV6DOW)RRGWR*DQGKLZDVQRWRQO\DVRXUFHRIVXVWDLQLQJRQH
VERG\EXWDVRXUFHRIKLVLPSDFWRQ
RWKHUOLYLQJEHLQJVDQGRQHWKDWDIIHFWHGKLVPLQGFKDUDFWHUDQGVSLULWXDOZHOOEHLQJ>@>@>@+HDYRLGHGQRWRQO\
PHDWEXWDOVRHJJVDQGPLON*DQGKLZURWHWKHERRN7KH0RUDO%DVLVRI9HJHWDULDQLVPDQGZURWHIRUWKH/RQGRQ
9HJHWDULDQ6RFLHW\
VSXEOLFDWLRQ>@

%H\RQGKLVUHOLJLRXVEHOLHIV*DQGKLVWDWHGDQRWKHUPRWLYDWLRQIRUKLVH[SHULPHQWVZLWKGLHW+HDWWHPSWHGWRILQGWKH
PRVWQRQYLROHQWYHJHWDULDQPHDOWKDWWKHSRRUHVWKXPDQFRXOGDIIRUGWDNLQJPHWLFXORXVQRWHVRQYHJHWDEOHVDQG
IUXLWV  DQG  KLV  REVHUYDWLRQV  ZLWK  KLV  RZQ  ERG\  DQG KLV  DVKUDP  LQ  *XMDUDW>@>@  +H  WULHG  IUHVK  DQG  GU\  IUXLWV
)UXLWDULDQLVP  WKHQ  MXVW VXQ  GULHG  IUXLWV  EHIRUH  UHVXPLQJ  KLV SULRU  YHJHWDULDQ  GLHW RQ  DGYLFH  RI  KLV GRFWRU DQG
FRQFHUQVRIKLVIULHQGV+LVH[SHULPHQWVZLWKIRRGEHJDQLQVDQGFRQWLQXHGIRUVHYHUDOGHFDGHV>@>@)RUVRPH
RIWKHVHH[SHULPHQWV*DQGKLFRPELQHGKLVRZQLGHDVZLWKWKRVHIRXQGRQGLHWLQ,QGLDQ\RJDWH[WV+HEHOLHYHGWKDW
HDFKYHJHWDULDQVKRXOGH[SHULPHQWZLWKKLVRUKHUGLHWEHFDXVHLQKLVVWXGLHVDWKLVDVKUDPKHVDZRQHPDQ
VIRRG
PD\EHSRLVRQIRUDQRWKHU>@>@

*DQGKLFKDPSLRQHGDQLPDOULJKWVLQJHQHUDO2WKHUWKDQPDNLQJYHJHWDULDQFKRLFHVKHDFWLYHO\FDPSDLJQHGDJDLQVW
GLVVHFWLRQVWXGLHVDQGH[SHULPHQWDWLRQRQOLYHDQLPDOVYLYLVHFWLRQLQWKHQDPHRIVFLHQFHDQGPHGLFDOVWXGLHV>@
+HFRQVLGHUHGLWDYLROHQFHDJDLQVWDQLPDOVVRPHWKLQJWKDWLQIOLFWHGSDLQDQGVXIIHULQJ+HZURWH9LYLVHFWLRQLQP\
RSLQLRQ  LV  WKH  EODFNHVW  RI  DOO  WKH  EODFNHVW  FULPHV  WKDW  PDQ  LV  DW  SUHVHQW  FRPPLWWLQJ  DJDLQVW  JRG  DQG  KLV  IDLU
FUHDWLRQ>@

)DVWLQJ
*DQGKLXVHGIDVWLQJDVDSROLWLFDOGHYLFHRIWHQWKUHDWHQLQJVXLFLGHXQOHVVGHPDQGVZHUHPHW&RQJUHVVSXEOLFLVHGWKH
IDVWVDVDSROLWLFDODFWLRQWKDWJHQHUDWHGZLGHVSUHDGV\PSDWK\,QUHVSRQVHWKHJRYHUQPHQWWULHGWRPDQLSXODWHQHZV
FRYHUDJHWRPLQLPLVHKLVFKDOOHQJHWRWKH5DM+HIDVWHGLQWRSURWHVWWKHYRWLQJVFKHPHIRUVHSDUDWHSROLWLFDO
UHSUHVHQWDWLRQIRU'DOLWV*DQGKLGLGQRWZDQWWKHPVHJUHJDWHG7KH%ULWLVKJRYHUQPHQWVWRSSHGWKH/RQGRQSUHVV
IURPVKRZLQJSKRWRJUDSKVRIKLVHPDFLDWHGERG\EHFDXVHLWZRXOGHOLFLWV\PSDWK\*DQGKL
VKXQJHUVWULNHWRRN
SODFHGXULQJDWZR\HDUSULVRQWHUPIRUWKHDQWLFRORQLDO4XLW,QGLDPRYHPHQW7KHJRYHUQPHQWFDOOHGRQQXWULWLRQDO
H[SHUWVWRGHP\VWLI\KLVDFWLRQDQGDJDLQQRSKRWRVZHUHDOORZHG+RZHYHUKLVILQDOIDVWLQDIWHUWKHHQGRI

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

%ULWLVKUXOHLQ,QGLDKLVKXQJHUVWULNHZDVODXGHGE\WKH%ULWLVKSUHVVDQG
WKLVWLPHGLGLQFOXGHIXOOOHQJWKSKRWRV>@

$OWHUVWDWHVWKDW*DQGKL
VIDVWLQJYHJHWDULDQLVPDQGGLHWZDVPRUHWKDQD
SROLWLFDOOHYHUDJHLWZDVDSDUWRIKLVH[SHULPHQWVZLWKVHOIUHVWUDLQWDQG
KHDOWK\  OLYLQJ  +H  ZDV  SURIRXQGO\  VNHSWLFDO  RI  WUDGLWLRQDO  $\XUYHGD
HQFRXUDJLQJ  LW  WR  VWXG\  WKH  VFLHQWLILF  PHWKRG  DQG  DGRSW  LWV  SURJUHVVLYH
OHDUQLQJ  DSSURDFK  *DQGKL  EHOLHYHG  \RJD  RIIHUHG  KHDOWK  EHQHILWV  +H
EHOLHYHGWKDWDKHDOWK\QXWULWLRQDOGLHWEDVHGRQUHJLRQDOIRRGVDQGK\JLHQH
ZHUHHVVHQWLDOWRJRRGKHDOWK>@

:RPHQ *DQGKL
VODVWSROLWLFDOSURWHVWXVLQJ
*DQGKL  VWURQJO\  IDYRXUHG  WKH  HPDQFLSDWLRQ  RI  ZRPHQ  DQG  XUJHG  WKH IDVWLQJLQ-DQXDU\
ZRPHQWRILJKWIRUWKHLURZQVHOIGHYHORSPHQW+HRSSRVHGSXUGDKFKLOG
PDUULDJHGRZU\DQGVDWL>@ $ZLIHLVQRWDVODYHRIWKHKXVEDQGVWDWHG
*DQGKLEXWKLVFRPUDGHEHWWHUKDOIFROOHDJXHDQGIULHQGDFFRUGLQJWR/\Q1RUYHOO>@ ,QKLVRZQOLIHKRZHYHU
DFFRUGLQJWR6XUXFKL7KDSDU%MRUNHUW*DQGKL
VUHODWLRQVKLSZLWKKLVZLIHZHUHDWRGGVZLWKVRPHRIWKHVHYDOXHV>@

$WYDULRXVRFFDVLRQV*DQGKLFUHGLWHGKLVRUWKRGR[+LQGXPRWKHUDQGKLVZLIHIRUILUVWOHVVRQVLQVDW\DJUDKD>@+H
XVHGWKHOHJHQGVRI+LQGXJRGGHVV6LWDWRH[SRXQGZRPHQ
VLQQDWHVWUHQJWKDXWRQRP\DQGOLRQHVVLQVSLULWZKRVH
PRUDOFRPSDVVFDQPDNHDQ\GHPRQDVKHOSOHVVDVDJRDW>@ 7R*DQGKLWKHZRPHQRI,QGLDZHUHDQLPSRUWDQW
SDUWRIWKHVZDGHVKLPRYHPHQW%X\,QGLDQDQGKLVJRDORIGHFRORQLVLQJWKH,QGLDQHFRQRP\>@

6RPHKLVWRULDQVVXFKDV$QJHOD:RROODFRWWDQG.XPDUL-D\DZDUGHQDVWDWHWKDWHYHQWKRXJK*DQGKLRIWHQDQGSXEOLFO\
H[SUHVVHGKLVEHOLHILQWKHHTXDOLW\RIVH[HV\HWKLVYLVLRQZDVRQHRIJHQGHUGLIIHUHQFHDQGFRPSOHPHQWDULW\EHWZHHQ
WKHP:RPHQWR*DQGKLVKRXOGEHHGXFDWHGWREHEHWWHULQWKHGRPHVWLFUHDOPDQGHGXFDWHWKHQH[WJHQHUDWLRQ+LV
YLHZV  RQ  ZRPHQ
V  ULJKW  ZHUH  OHVV  OLEHUDO  DQG  PRUH  VLPLODU  WR  SXULWDQ9LFWRULDQ  H[SHFWDWLRQV  RI  ZRPHQ  VWDWHV
-D\DZDUGHQDWKDQRWKHU+LQGXOHDGHUVZLWKKLPZKRVXSSRUWHGHFRQRPLFLQGHSHQGHQFHDQGHTXDOJHQGHUULJKWVLQDOO
DVSHFWV>@>@

%UDKPDFKDU\DDEVWLQHQFHIURPVH[DQGIRRG
$ORQJZLWKPDQ\RWKHUWH[WV*DQGKLVWXGLHG%KDJDYDG*LWDZKLOHLQ6RXWK$IULFD>@7KLV+LQGXVFULSWXUHGLVFXVVHV
MQDQD\RJDEKDNWL\RJDDQGNDUPD\RJDDORQJZLWKYLUWXHVVXFKDVQRQYLROHQFHSDWLHQFHLQWHJULW\ODFNRIK\SRFULV\
VHOIUHVWUDLQWDQGDEVWLQHQFH>@*DQGKLEHJDQH[SHULPHQWVZLWKWKHVHDQGLQDWDJHDOWKRXJKPDUULHGDQGD
IDWKHUKHYRZHGWRDEVWDLQIURPVH[XDOUHODWLRQV>@

*DQGKL
V  H[SHULPHQW  ZLWK  DEVWLQHQFH  ZHQW  EH\RQG  VH[  DQG  H[WHQGHG  WR  IRRG  +H  FRQVXOWHG  WKH  -DLQ  VFKRODU
5DMFKDQGUDZKRPKHIRQGO\FDOOHG5D\FKDQGEKDL>@ 5DMFKDQGUDDGYLVHGKLPWKDWPLONVWLPXODWHGVH[XDOSDVVLRQ
*DQGKLEHJDQDEVWDLQLQJIURPFRZ
VPLONLQDQGGLGVRHYHQZKHQGRFWRUVDGYLVHGKLPWRFRQVXPHPLON>@>@
$FFRUGLQJWR6DQNDU*KRVH7DJRUHGHVFULEHG*DQGKLDVVRPHRQHZKRGLGQRWDEKRUVH[RUZRPHQEXWFRQVLGHUHG
VH[XDOOLIHDVLQFRQVLVWHQWZLWKKLVPRUDOJRDOV>@

*DQGKLWULHGWRWHVWDQGSURYHWRKLPVHOIKLVEUDKPDFKDU\D7KHH[SHULPHQWVEHJDQVRPHWLPHDIWHUWKHGHDWKRIKLV
ZLIHLQ)HEUXDU\$WWKHVWDUWRIKLVH[SHULPHQWKHKDGZRPHQVOHHSLQWKHVDPHURRPEXWLQGLIIHUHQWEHGV+H
ODWHUVOHSWZLWKZRPHQLQWKHVDPHEHGEXWFORWKHGDQGILQDOO\KHVOHSWQDNHGZLWKZRPHQ,Q$SULO*DQGKL

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

UHIHUHQFHGEHLQJQDNHGZLWKVHYHUDOZRPHQRUJLUOVLQDOHWWHUWR%LUODDVSDUWRIWKHH[SHULPHQWV>@ $FFRUGLQJWR
WKHVPHPRLURIKLVJUDQGQLHFH0DQX*DQGKLIHDUHGLQHDUO\WKDWKHDQGVKHPD\EHNLOOHGE\0XVOLPVLQWKH
UXQXSWR,QGLD
VLQGHSHQGHQFHLQ$XJXVWDQGDVNHGKHUZKHQVKHZDV\HDUROGLIVKHZDQWHGWRKHOSKLPZLWK
KLVH[SHULPHQWVWRWHVWWKHLUSXULW\IRUZKLFKVKHUHDGLO\DFFHSWHG>@ *DQGKLVOHSWQDNHGLQWKHVDPHEHGZLWK
0DQXZLWKWKHEHGURRPGRRUVRSHQDOOQLJKW0DQXVWDWHGWKDWWKHH[SHULPHQWKDGQRLOOHIIHFWRQKHU*DQGKLDOVR
VKDUHGKLVEHGZLWK\HDUROG$EKDZLIHRIKLVJUDQGQHSKHZ.DQX*DQGKLZRXOGVOHHSZLWKERWK0DQXDQG$EKDDW
WKHVDPHWLPH>@>@1RQHRIWKHZRPHQZKRSDUWLFLSDWHGLQWKHEUDKPDFKDULH[SHULPHQWVRI*DQGKLLQGLFDWHGWKDW
WKH\KDGVH[RUWKDW*DQGKLEHKDYHGLQDQ\VH[XDOZD\7KRVHZKRZHQWSXEOLFVDLGWKH\IHOWDVWKRXJKWKH\ZHUH
VOHHSLQJZLWKWKHLUDJHLQJPRWKHU>@>@>@

$FFRUGLQJWR6HDQ6FDOPHU*DQGKLLQKLVILQDO\HDURIOLIHZDVDQDVFHWLFORRNHGXJO\DQGDVLFNO\VNHOHWDOILJXUH
DOUHDG\  FDULFDWXUHG  LQ  WKH  :HVWHUQ  PHGLD>@  ,Q  )HEUXDU\    KH  DVNHG  KLV  FRQILGDQWV  VXFK  DV  %LUOD  DQG
5DPDNULVKQDLILWZDVZURQJIRUKLPWRH[SHULPHQWKLVEUDKPDFKDU\DRDWK>@*DQGKL
VSXEOLFH[SHULPHQWVDVWKH\
SURJUHVVHGZHUHZLGHO\GLVFXVVHGDQGFULWLFLVHGE\KLVIDPLO\PHPEHUVDQGOHDGLQJSROLWLFLDQV+RZHYHU*DQGKLVDLG
WKDWLIKHZRXOGQRWOHW0DQXVOHHSZLWKKLPLWZRXOGEHDVLJQRIZHDNQHVV6RPHRIKLVVWDIIUHVLJQHGLQFOXGLQJWZR
RIKLVQHZVSDSHU
VHGLWRUVZKRKDGUHIXVHGWRSULQW VRPH RI*DQGKL
VVHUPRQVGHDOLQJZLWK KLVH[SHULPHQWV>@
1LUPDONXPDU%RVH*DQGKL
V%HQJDOLLQWHUSUHWHU IRU H[DPSOHFULWLFLVHG*DQGKL QRWEHFDXVH *DQGKLGLG DQ\WKLQJ
ZURQJ  EXW  EHFDXVH  %RVH  ZDV  FRQFHUQHG  DERXW  WKH  SV\FKRORJLFDO  HIIHFW  RQ  WKH  ZRPHQ  ZKR  SDUWLFLSDWHG  LQ  KLV
H[SHULPHQWV>@9HHQD+RZDUGVWDWHV*DQGKL
VYLHZVRQEUDKPDFKDU\DDQGUHOLJLRXVUHQXQFLDWLRQH[SHULPHQWVZHUH
DPHWKRGWRFRQIURQWZRPHQLVVXHVLQKLVWLPHV>@

8QWRXFKDELOLW\DQGFDVWHV
*DQGKLVSRNHRXWDJDLQVWXQWRXFKDELOLW\HDUO\LQKLVOLIH>@%HIRUHKHDQGKLVFROOHDJXHVXVHGWKHWHUP$QW\DMD
IRUXQWRXFKDEOHV2QHRIWKHPDMRUVSHHFKHVKHPDGH RQXQWRXFKDELOLW\ZDVDW 1DJSXU  LQ    ZKHUH  KH  FDOOHG
XQWRXFKDELOLW\DVDJUHDWHYLOLQ+LQGXVRFLHW\,QKLVUHPDUNVKHVWDWHGWKDWWKHSKHQRPHQDRIXQWRXFKDELOLW\LVQRW
XQLTXHWRWKH+LQGXVRFLHW\EXWKDVGHHSHUURRWVEHFDXVH(XURSHDQVLQ6RXWK$IULFDWUHDWDOORIXV+LQGXVDQG
0XVOLPVDVXQWRXFKDEOHVZHPD\QRWUHVLGHLQWKHLUPLGVWQRUHQMR\WKHULJKWVZKLFKWKH\GR>@ +HFDOOHGLW
LQWROHUDEOH+HVWDWHGWKLVSUDFWLFHFDQEHHUDGLFDWHG+LQGXLVPLVIOH[LEOHWRDOORZWKLVDQGDFRQFHUWHGHIIRUWLV
QHHGHGWRSHUVXDGHLWLVZURQJDQGE\DOOWRHUDGLFDWHLW>@

$FFRUGLQJWR&KULVWRSKH-DIIUHORWZKLOH*DQGKLFRQVLGHUHGXQWRXFKDELOLW\WREHZURQJDQGHYLOKHEHOLHYHGWKDWFDVWH
RU  FODVV  DUH  EDVHG  QHLWKHU  RQ  LQHTXDOLW\  QRU  RQ  LQIHULRULW\>@  *DQGKL  EHOLHYHG  WKDW  LQGLYLGXDOV  VKRXOG  IUHHO\
LQWHUPDUU\ZKRHYHUWKH\ZDQWWREXWQRRQHVKRXOGH[SHFWHYHU\RQHWREHIULHQGWKHP(YHU\LQGLYLGXDOUHJDUGOHVVRI
KLVRUKHUEDFNJURXQGVWDWHG*DQGKLKDVDULJKWWRFKRRVHZKRWKH\ZHOFRPHLQWRWKHLUKRPHZKRWKH\EHIULHQGDQG
ZKRWKH\VSHQGWLPHZLWK>@>@

,Q*DQGKLEHJDQDQHZFDPSDLJQWRLPSURYHWKHOLYHVRIWKHXQWRXFKDEOHVZKRPKHVWDUWHGUHIHUULQJWRDV
+DULMDQVRUWKHFKLOGUHQRIJRG>@ 2Q0D\*DQGKLEHJDQDGD\IDVWRIVHOISXULILFDWLRQDQGODXQFKHGD
RQH\HDUFDPSDLJQWRKHOSWKH+DULMDQPRYHPHQW>@ 7KLVQHZFDPSDLJQZDVQRWXQLYHUVDOO\HPEUDFHGZLWKLQWKH
'DOLWFRPPXQLW\$PEHGNDUDQGKLVDOOLHVIHOW*DQGKLZDVEHLQJSDWHUQDOLVWLFDQGZDVXQGHUPLQLQJ'DOLWSROLWLFDO
ULJKWV$PEHGNDUGHVFULEHGKLPDVGHYLRXVDQGXQWUXVWZRUWK\>@ +HDFFXVHG*DQGKLDVVRPHRQHZKRZLVKHGWR
UHWDLQWKHFDVWHV\VWHP>@ $PEHGNDUDQG*DQGKLGHEDWHGWKHLULGHDVDQGFRQFHUQVZKHUHERWKWULHGWRSHUVXDGH
HDFKRWKHU>@>@

,Q$PEHGNDUDQQRXQFHGKLVLQWHQWLRQVWROHDYH+LQGXLVPDQGMRLQ%XGGKLVP>@ $FFRUGLQJWR6DQNDU*KRVH

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

WKHDQQRXQFHPHQWVKRRN*DQGKLZKRUHDSSUDLVHGKLVYLHZVDQGZURWHPDQ\HVVD\VZLWKKLVYLHZVRQFDVWHVLQWHU
PDUULDJH DQG ZKDW+LQGXLVP VD\V RQ WKH VXEMHFW 7KHVH YLHZV FRQWUDVWHG ZLWK  WKRVH RI $PEHGNDU>@  ,Q  DFWXDO
HOHFWLRQVRIH[FHSWIRUVRPHVHDWVLQ0XPEDLZKHUH$PEHNDU
VSDUW\ZRQ,QGLD
VXQWRXFKDEOHVYRWHGKHDYLO\LQ
IDYRXURI*DQGKL
VFDPSDLJQDQGKLVSDUW\WKH&RQJUHVV>@

*DQGKLDQGKLVFROOHDJXHVFRQWLQXHGWRFRQVXOW$PEHGNDUNHHSLQJKLP LQIOXHQWLDO $PEHGNDUZRUNHGZLWKRWKHU

&RQJUHVVOHDGHUVWKURXJKWKHVZURWHODUJHSDUWVRI,QGLD
VFRQVWLWXWLRQLQODWHVDQGFRQYHUWHGWR%XGGKLVP
LQ  >@  $FFRUGLQJ  WR  -DIIUHORW  *DQGKL
V  YLHZV  HYROYHG  EHWZHHQ  V  DQG  V  ZKHQ  LQ    KH  DFWLYHO\
HQFRXUDJHGLQWHUPDUULDJHDFURVVFDVWHV+RZHYHU*DQGKL
VDSSURDFKWRXQWRXFKDELOLW\ZDVGLIIHUHQWWKDQ$PEHGNDU
EHFDXVH*DQGKLFKDPSLRQHGIXVLRQFKRLFHDQGIUHHLQWHUPL[LQJ$PEHGNDULQFRQWUDVWVWDWHV-HIIUHORWHQYLVLRQHG
HDFKVHJPHQWRIVRFLHW\WRPDLQWDLQWKHLULGHQWLW\JURXSDQGHDFKJURXSWKHQVHSDUDWHO\DGYDQFHGWKHSROLWLFVRI
HTXDOLW\>@

7KHFULWLFLVPRI*DQGKLE\$PEHGNDUFRQWLQXHGWRLQIOXHQFHWKH'DOLWPRYHPHQWSDVW*DQGKL
VGHDWK$FFRUGLQJWR
$UWKXU+HUPDQ$PEHGNDU
VKDWHIRU*DQGKLDQG*DQGKL
VLGHDVZDVVRVWURQJWKDWDIWHUKHKHDUGWKHQHZVRI*DQGKL
V
DVVDVVLQDWLRQUHPDUNHGDIWHUDPRPHQWDU\VLOHQFHDVHQVHRIUHJUHWDQGWKHQP\UHDOHQHP\LVJRQHWKDQNJRRGQHVV
WKHHFOLSVHLVRYHUQRZ>@>@$FFRUGLQJWR5DPDFKDQGUD*XKDLGHRORJXHVKDYHFDUULHGWKHVHROGULYDOULHVLQWRWKH
SUHVHQW  ZLWK  WKH  GHPRQL]DWLRQ RI  *DQGKL QRZ  FRPPRQ  DPRQJ SROLWLFLDQV ZKR SUHVXPH  WR VSHDN  LQ  $PEHGNDU
V
QDPH>@

1DL7DOLPEDVLFHGXFDWLRQ
*DQGKLUHMHFWHGWKHFRORQLDO:HVWHUQIRUPDWRIHGXFDWLRQV\VWHP+HVWDWHGWKDWLWOHGWRGLVGDLQIRUPDQXDOZRUN
JHQHUDOO\FUHDWHGDQHOLWHDGPLQLVWUDWLYHEXUHDXFUDF\*DQGKLIDYRXUHGDQHGXFDWLRQV\VWHPZLWKIDUJUHDWHUHPSKDVLV
RQ  OHDUQLQJ  VNLOOV  LQ  SUDFWLFDO  DQG  XVHIXO  ZRUN  RQH  WKDW  LQFOXGHG  SK\VLFDO  PHQWDO  DQG  VSLULWXDO  VWXGLHV  +LV
PHWKRGRORJ\VRXJKWWRWUHDWDOOSURIHVVLRQVHTXDODQGSD\HYHU\RQHWKHVDPH>@>@

*DQGKLFDOOHGKLVLGHDV1DL7DOLPOLWHUDOO\
QHZHGXFDWLRQ
+HEHOLHYHGWKDWWKH:HVWHUQVW\OHHGXFDWLRQYLRODWHG
DQG  GHVWUR\HG  WKH  LQGLJHQRXV  FXOWXUHV  $  GLIIHUHQW  EDVLF  HGXFDWLRQ  PRGHO  KH  EHOLHYHG  ZRXOG  OHDG  WR  EHWWHU  VHOI
DZDUHQHVV SUHSDUH SHRSOH WRWUHDWDOOZRUN HTXDOO\ UHVSHFWDEOH DQG YDOXHG DQG OHDGWRD VRFLHW\ ZLWK  OHVV VRFLDO
GLVHDVHV>@>@

1DL7DOLPHYROYHGRXWRIKLVH[SHULHQFHVDWWKH7ROVWR\)DUPLQ6RXWK$IULFDDQG*DQGKLDWWHPSWHGWRIRUPXODWHWKH
QHZV\VWHPDWWKH6HYDJUDPDVKUDPDIWHU>@1HKUXJRYHUQPHQW
VYLVLRQRIDQLQGXVWULDOLVHGFHQWUDOO\SODQQHG
HFRQRP\DIWHUKDGVFDQWSODFHIRU*DQGKL
VYLOODJHRULHQWHGDSSURDFK>@

,QKLVDXWRELRJUDSK\*DQGKLZURWHWKDWKHEHOLHYHGHYHU\+LQGXER\DQGJLUOPXVWOHDUQ6DQVNULWEHFDXVHLWVKLVWRULF
DQGVSLULWXDOWH[WVDUHLQWKDWODQJXDJH>@

6ZDUDMVHOIUXOH
*DQGKLEHOLHYHGWKDWVZDUDMQRWRQO\FDQEHDWWDLQHGZLWKQRQYLROHQFHLWFDQEHUXQZLWKQRQYLROHQFH$PLOLWDU\LV
XQQHFHVVDU\  EHFDXVH  DQ\  DJJUHVVRU  FDQ  EH  WKURZQ  RXW XVLQJ  WKH  PHWKRG  RI  QRQYLROHQW  QRQFRRSHUDWLRQ  :KLOH
PLOLWDU\LVXQQHFHVVDU\LQDQDWLRQRUJDQLVHGXQGHUVZDUDMSULQFLSOH*DQGKLDGGHGWKDWDSROLFHIRUFHLVQHFHVVDU\
JLYHQKXPDQQDWXUH+RZHYHUWKHVWDWHZRXOGOLPLWWKHXVHRIZHDSRQVE\WKHSROLFHWRWKHPLQLPXPDLPLQJIRUWKHLU
XVHDVDUHVWUDLQLQJIRUFH>@

$FFRUGLQJ  WR  *DQGKL  D  QRQYLROHQW  VWDWH  LV  OLNH  DQ  RUGHUHG  DQDUFK\>@  ,Q  D  VRFLHW\  RI  PRVWO\  QRQYLROHQW

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

LQGLYLGXDOVWKRVHZKRDUHYLROHQWZLOOVRRQHURUODWHUDFFHSWGLVFLSOLQHRUOHDYHWKHFRPPXQLW\VWDWHG*DQGKL>@+H
HPSKDVLVHG  D  VRFLHW\  ZKHUH  LQGLYLGXDOV  EHOLHYHG  PRUH  LQ  OHDUQLQJ  DERXW  WKHLU  GXWLHV  DQG  UHVSRQVLELOLWLHV  QRW
GHPDQGHG  ULJKWV  DQG  SULYLOHJHV  2Q  UHWXUQLQJ  IURP  6RXWK  $IULFD  ZKHQ  *DQGKL  UHFHLYHG  D  OHWWHU  DVNLQJ  IRU  KLV
SDUWLFLSDWLRQ LQZULWLQJDZRUOGFKDUWHU IRUKXPDQ ULJKWVKHUHVSRQGHG VD\LQJLQ P\H[SHULHQFHLW LVIDU  PRUH
LPSRUWDQWWRKDYHDFKDUWHUIRUKXPDQGXWLHV>@

6ZDUDMWR*DQGKLGLGQRWPHDQWUDQVIHUULQJFRORQLDOHUD%ULWLVKSRZHUEURNHULQJV\VWHPIDYRXUVGULYHQEXUHDXFUDWLF
FODVVH[SORLWDWLYHVWUXFWXUHDQGPLQGVHWLQWR,QGLDQKDQGV+HZDUQHGVXFKDWUDQVIHUZRXOGVWLOOEH(QJOLVKUXOHMXVW
ZLWKRXW  WKH  (QJOLVKPDQ  7KLV  LV  QRW  WKH  6ZDUDM  ,  ZDQW  VDLG  *DQGKL>@>@  7HZDUL  VWDWHV  WKDW  *DQGKL  VDZ
GHPRFUDF\DVPRUHWKDQDV\VWHPRIJRYHUQPHQWLWPHDQWSURPRWLQJERWKLQGLYLGXDOLW\DQGWKHVHOIGLVFLSOLQHRIWKH
FRPPXQLW\  'HPRFUDF\  PHDQW  VHWWOLQJ  GLVSXWHV  LQ  D  QRQYLROHQW  PDQQHU  LW  UHTXLUHG  IUHHGRP  RI  WKRXJKW  DQG
H[SUHVVLRQ)RU*DQGKLGHPRFUDF\ZDVDZD\RIOLIH>@

+LQGXQDWLRQDOLVPDQGUHYLYDOLVP
6RPHVFKRODUVVWDWH*DQGKLVXSSRUWHGDUHOLJLRXVO\GLYHUVH,QGLD>@ZKLOHRWKHUVVWDWHWKDWWKH0XVOLPOHDGHUVZKR
FKDPSLRQHGWKHSDUWLWLRQDQGFUHDWLRQRIDVHSDUDWH0XVOLP3DNLVWDQFRQVLGHUHG*DQGKLWREH+LQGXQDWLRQDOLVWRU
UHYLYDOLVW>@>@)RUH[DPSOHLQKLVOHWWHUVWR0RKDPPDG,TEDO-LQQDKDFFXVHG*DQGKLWREHIDYRXULQJD+LQGXUXOH
DQGUHYLYDOLVPWKDW*DQGKLOHG,QGLDQ1DWLRQDO&RQJUHVVZDVDIDVFLVWSDUW\>@

,QDQLQWHUYLHZZLWK&)$QGUHZV*DQGKLVWDWHGWKDWLIZHEHOLHYHDOOUHOLJLRQVWHDFKWKHVDPHPHVVDJHRIORYHDQG
SHDFHEHWZHHQDOOKXPDQEHLQJVWKHQWKHUHLVQHLWKHUDQ\UDWLRQDOHQRUQHHGIRUSURVHO\WLVDWLRQRUDWWHPSWVWRFRQYHUW
SHRSOHIURPRQHUHOLJLRQWRDQRWKHU>@*DQGKLRSSRVHGPLVVLRQDU\RUJDQLVDWLRQVZKRFULWLFLVHG,QGLDQUHOLJLRQVWKHQ
DWWHPSWHGWRFRQYHUWIROORZHUVRI,QGLDQUHOLJLRQVWR,VODPRU&KULVWLDQLW\,Q*DQGKL
VYLHZWKRVHZKRDWWHPSWWR
FRQYHUWD+LQGXWKH\PXVWKDUERXULQWKHLUEUHDVWVWKHEHOLHIWKDW+LQGXLVPLVDQHUURUDQGWKDWWKHLURZQUHOLJLRQLV
WKHRQO\WUXHUHOLJLRQ>@>@*DQGKLEHOLHYHGWKDWSHRSOHZKRGHPDQGUHOLJLRXVUHVSHFWDQGULJKWVPXVWDOVRVKRZ
WKH  VDPH  UHVSHFW  DQG  JUDQW WKH  VDPH  ULJKWV  WR  IROORZHUV  RI  RWKHU  UHOLJLRQV  +H  VWDWHG  WKDW  VSLULWXDO  VWXGLHV  PXVW
HQFRXUDJHD+LQGXWREHFRPHDEHWWHU+LQGXD0XVVDOPDQWREHFRPHDEHWWHU0XVVDOPDQDQGD&KULVWLDQDEHWWHU
&KULVWLDQ>@

$FFRUGLQJWR*DQGKLUHOLJLRQLVQRWDERXWZKDWDPDQEHOLHYHVLWLVDERXWKRZDPDQOLYHVKRZKHUHODWHVWRRWKHU
SHRSOHKLVFRQGXFWWRZDUGVRWKHUVDQGRQH
VUHODWLRQVKLSWRRQH
VFRQFHSWLRQRIJRG>@,WLVQRWLPSRUWDQWWRFRQYHUW
RUWRMRLQDQ\UHOLJLRQEXWLWLVLPSRUWDQWWRLPSURYHRQH
VZD\RIOLIHDQGFRQGXFWE\DEVRUELQJLGHDVIURPDQ\VRXUFH
DQGDQ\UHOLJLRQEHOLHYHG*DQGKL>@

*DQGKLDQHFRQRPLFV
*DQGKLEHOLHYHGLQ VDUYRGD\DHFRQRPLFPRGHOZKLFKOLWHUDOO\PHDQVZHOIDUHXSOLIWPHQWRIDOO>@  7KLV  VWDWHV
%KDWWZDVYHU\GLIIHUHQWHFRQRPLFPRGHOWKDQWKHVRFLDOLVPPRGHOFKDPSLRQHGDQGIROORZHGE\IUHH,QGLDE\1HKUX±
,QGLD
VILUVWSULPHPLQLVWHU7RERWKDFFRUGLQJWR%KDWWUHPRYLQJSRYHUW\DQGXQHPSOR\PHQWZHUHWKHREMHFWLYHEXW
*DQGKLDQ  HFRQRPLF  DQG  GHYHORSPHQW  DSSURDFK  SUHIHUUHG  DGDSWLQJ  WHFKQRORJ\  DQG  LQIUDVWUXFWXUH  WR  VXLW  ORFDO
VLWXDWLRQLQFRQWUDVWWR1HKUX
VODUJHVFDOHVRFLDOLVHGVWDWHRZQHGHQWHUSULVHV>@

7R*DQGKLWKHHFRQRPLFSKLORVRSK\WKDWDLPVDWJUHDWHVWJRRGIRUWKHJUHDWHVWQXPEHUZDVIXQGDPHQWDOO\IODZHG
DQGKLVDOWHUQDWLYHSURSRVDOVDUYRGD\DVHWLWVDLPDWJUHDWHVWJRRGIRUDOO+HEHOLHYHGWKDWWKHEHVWHFRQRPLFV\VWHP
QRWRQO\FDUHGWROLIWWKHSRRUOHVVVNLOOHGRILPSRYHULVKHGEDFNJURXQGEXWDOVRHPSRZHUHGWROLIWWKHULFKKLJKO\
VNLOOHG RIFDSLWDOPHDQVDQG ODQGORUGV 9LROHQFH  DJDLQVWDQ\KXPDQ EHLQJERUQ SRRURU ULFKLVZURQJ EHOLHYHG

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

*DQGKL>@>@ +HVWDWHGWKDWPDQGDWHWKHRU\RIPDMRULWDULDQGHPRFUDF\VKRXOGQ
WEHSXVKHGWRDEVXUGH[WUHPHV
LQGLYLGXDOIUHHGRPVVKRXOGQHYHUEHGHQLHGDQGQRSHUVRQVKRXOGHYHUEHPDGHDVRFLDORUHFRQRPLFVODYHWRWKH
UHVROXWLRQVRIPDMRULWLHV>@

*DQGKLFKDOOHQJHG1HKUXDQGWKHPRGHUQL]HUVLQWKHODWHVZKRFDOOHGIRUUDSLGLQGXVWULDOLVDWLRQRQWKH6RYLHW
PRGHO*DQGKLGHQRXQFHGWKDWDVGHKXPDQLVLQJDQGFRQWUDU\WRWKHQHHGVRIWKHYLOODJHVZKHUHWKHJUHDWPDMRULW\RI
WKH  SHRSOH  OLYHG>@  $IWHU  *DQGKL
V  DVVDVVLQDWLRQ  1HKUX  OHG  ,QGLD  LQ  DFFRUGDQFH  ZLWK  KLV  SHUVRQDO  VRFLDOLVW
FRQYLFWLRQV>@>@ +LVWRULDQ.XUXYLOOD3DQGLNDWWX VD\V  LW ZDV 1HKUX
V  YLVLRQ  QRW *DQGKL
V WKDW ZDV  HYHQWXDOO\
SUHIHUUHGE\WKH,QGLDQ6WDWH>@

*DQGKLFDOOHGIRUHQGLQJSRYHUW\WKURXJKLPSURYHGDJULFXOWXUHDQGVPDOOVFDOHFRWWDJHUXUDOLQGXVWULHV>@ *DQGKL
V
HFRQRPLF  WKLQNLQJ  GLVDJUHHG  ZLWK  0DU[  DFFRUGLQJ  WR  WKH  SROLWLFDO  WKHRU\  VFKRODU  DQG  HFRQRPLVW  %KLNKX  3DUHNK
*DQGKLUHIXVHGWRHQGRUVHWKHYLHZWKDWHFRQRPLFIRUFHVDUHEHVWXQGHUVWRRGDVDQWDJRQLVWLFFODVVLQWHUHVWV>@ +H
DUJXHGWKDWQRPDQFDQGHJUDGHRUEUXWDOLVHWKHRWKHUZLWKRXWGHJUDGLQJDQGEUXWDOLVLQJKLPVHOIWKDWVXVWDLQDEOH
HFRQRPLFJURZWKFRPHVIURPVHUYLFHQRWIURPH[SORLWDWLRQ)XUWKHUEHOLHYHG*DQGKLWKDWLQDIUHHQDWLRQYLFWLPV
H[LVWRQO\ZKHQWKH\FRRSHUDWHZLWKWKHLURSSUHVVRUDQGDQHFRQRPLFDQGSROLWLFDOV\VWHPWKDWRIIHUHGLQFUHDVLQJ
DOWHUQDWLYHVJDYHSRZHURIFKRLFHWRWKHSRRUHVWPDQ>@

:KLOHGLVDJUHHLQJZLWK1HKUXDERXWVRFLDOLVWHFRQRPLFPRGHO*DQGKLDOVRFULWLTXHGFDSLWDOLVPWKDWZDVGULYHQE\
HQGOHVVZDQWVDQGDPDWHULDOLVWLFYLHZRIPDQ7KLVKHEHOLHYHGFUHDWHGDYLFLRXVYHVWHGV\VWHPRIPDWHULDOLVPDWWKH
FRVW  RI  RWKHU  KXPDQ  QHHGV  VXFK  DV  VSLULWXDOLW\  DQG  VRFLDO  UHODWLRQVKLSV>@  7R  *DQGKL  VWDWHV  3DUHNK  ERWK
FRPPXQLVPDQGFDSLWDOLVPZHUHZURQJLQSDUWEHFDXVHERWKIRFXVVHGH[FOXVLYHO\RQPDWHULDOLVWLFYLHZRIPDQDQG
EHFDXVH  WKH  IRUPHU  GHLILHG  WKH  VWDWH  ZLWK  XQOLPLWHG  SRZHU  RI  YLROHQFH  ZKLOH  WKH  ODWWHU  GHLILHG  FDSLWDO  $  EHWWHU
HFRQRPLFV\VWHPLVRQHZKLFKGRHVQRWLPSRYHULVKRQH
VFXOWXUHDQGVSLULWXDOSXUVXLWV>@

*DQGKLVP
*DQGKLVPGHVLJQDWHVWKHLGHDVDQGSULQFLSOHV*DQGKLSURPRWHG2IFHQWUDOLPSRUWDQFHLVQRQYLROHQWUHVLVWDQFH$
*DQGKLDQFDQPHDQHLWKHUDQLQGLYLGXDOZKRIROORZVRUDVSHFLILFSKLORVRSK\ZKLFKLVDWWULEXWHGWR*DQGKLVP>@0
06DQNKGKHUDUJXHVWKDW*DQGKLVPLVQRWDV\VWHPDWLFSRVLWLRQLQPHWDSK\VLFVRULQSROLWLFDOSKLORVRSK\5DWKHULWLV
DSROLWLFDOFUHHGDQHFRQRPLFGRFWULQHDUHOLJLRXVRXWORRNDPRUDOSUHFHSWDQGHVSHFLDOO\DKXPDQLWDULDQZRUOGYLHZ
,WLVDQHIIRUWQRWWRV\VWHPDWLVHZLVGRPEXWWRWUDQVIRUPVRFLHW\DQGLVEDVHGRQDQXQG\LQJIDLWKLQWKHJRRGQHVVRI
KXPDQQDWXUH>@+RZHYHU*DQGKLKLPVHOIGLGQRWDSSURYHRIWKHQRWLRQRI*DQGKLVPDVKHH[SODLQHGLQ

7KHUHLVQRVXFKWKLQJDV*DQGKLVPDQG,GRQRWZDQWWROHDYHDQ\VHFWDIWHUPH,GRQRWFODLPWRKDYH
RULJLQDWHGDQ\QHZSULQFLSOHRUGRFWULQH,KDYHVLPSO\WULHGLQP\RZQZD\WRDSSO\WKHHWHUQDOWUXWKVWR
RXUGDLO\OLIHDQGSUREOHPV7KHRSLQLRQV,KDYHIRUPHGDQGWKHFRQFOXVLRQV,KDYHDUULYHGDWDUHQRW
ILQDO,PD\FKDQJHWKHPWRPRUURZ,KDYHQRWKLQJQHZWRWHDFKWKHZRUOG7UXWKDQGQRQYLROHQFHDUHDV
ROGDVWKHKLOOV>@

/LWHUDU\ZRUNV
*DQGKL ZDV  D SUROLILF ZULWHU  2QH  RI *DQGKL
V HDUOLHVW  SXEOLFDWLRQV  +LQG 6ZDUDM  SXEOLVKHG  LQ  *XMDUDWL  LQ  
EHFDPHWKHLQWHOOHFWXDOEOXHSULQWIRU,QGLD
VLQGHSHQGHQFHPRYHPHQW7KHERRNZDVWUDQVODWHGLQWR(QJOLVKWKHQH[W
\HDUZLWKDFRS\ULJKWOHJHQGWKDWUHDG1R5LJKWV5HVHUYHG>@)RUGHFDGHVKHHGLWHGVHYHUDOQHZVSDSHUVLQFOXGLQJ
+DULMDQLQ*XMDUDWLLQ+LQGLDQGLQWKH(QJOLVKODQJXDJH,QGLDQ2SLQLRQZKLOHLQ6RXWK$IULFDDQG<RXQJ,QGLDLQ

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

(QJOLVKDQG1DYDMLYDQD*XMDUDWLPRQWKO\RQKLVUHWXUQWR,QGLD/DWHU1DYDMLYDQ
ZDV  DOVR  SXEOLVKHG  LQ  +LQGL  ,Q  DGGLWLRQ  KH  ZURWH  OHWWHUV  DOPRVW  HYHU\  GD\  WR
LQGLYLGXDOVDQGQHZVSDSHUV>@

*DQGKL  DOVR  ZURWH  VHYHUDO  ERRNV  LQFOXGLQJ  KLV  DXWRELRJUDSK\  7KH  6WRU\  RI  0\
([SHULPHQWV ZLWK  7UXWK  *XMDUŅWŝ ӑըӊӄӕ  ԐӊӢҳӢ  ңӁӎӕ  ҤԵұӁӕ  RI  ZKLFK  KH
ERXJKW  WKH  HQWLUH  ILUVW  HGLWLRQ  WR  PDNH  VXUH  LW  ZDV  UHSULQWHG>@  +LV  RWKHU
DXWRELRJUDSKLHV  LQFOXGHG  6DW\DJUDKD  LQ  6RXWK  $IULFD  DERXW  KLV  VWUXJJOH  WKHUH
+LQG  6ZDUDM  RU  ,QGLDQ  +RPH  5XOH  D  SROLWLFDO  SDPSKOHW  DQG  D  SDUDSKUDVH  LQ
*XMDUDWLRI-RKQ5XVNLQ
V8QWR7KLV/DVW>@ 7KLVODVWHVVD\FDQEHFRQVLGHUHGKLV
SURJUDPPH RQ HFRQRPLFV  +H DOVR ZURWH  H[WHQVLYHO\ RQ YHJHWDULDQLVP GLHW DQG
KHDOWKUHOLJLRQVRFLDOUHIRUPVHWF*DQGKLXVXDOO\ZURWHLQ*XMDUDWLWKRXJKKHDOVR
UHYLVHGWKH+LQGLDQG(QJOLVKWUDQVODWLRQVRIKLVERRNV>@ <RXQJ,QGLDDZHHNO\
MRXUQDOSXEOLVKHGE\*DQGKL
*DQGKL
VFRPSOHWHZRUNVZHUHSXEOLVKHGE\WKH,QGLDQJRYHUQPHQWXQGHUWKHQDPH IURPWR
7KH  &ROOHFWHG  :RUNV  RI  0DKDWPD  *DQGKL  LQ  WKH  V  7KH  ZULWLQJV  FRPSULVH
DERXW    SDJHV  SXEOLVKHG  LQ  DERXW  D  KXQGUHG  YROXPHV  ,Q    D  UHYLVHG
HGLWLRQRIWKHFRPSOHWHZRUNVVSDUNHGDFRQWURYHUV\DVLWFRQWDLQHGDODUJHQXPEHURIHUURUVDQGRPLVVLRQV>@ 7KH
,QGLDQJRYHUQPHQWODWHUZLWKGUHZWKHUHYLVHGHGLWLRQ>@

/HJDF\DQGGHSLFWLRQVLQSRSXODUFXOWXUH
7KHZRUG0DKDWPDZKLOHRIWHQPLVWDNHQIRU*DQGKL
VJLYHQQDPHLQWKH:HVWLVWDNHQIURPWKH6DQVNULWZRUGV
PDKDPHDQLQJ*UHDWDQGDWPDPHDQLQJ6RXO5DELQGUDQDWK7DJRUHLVVDLGWRKDYHDFFRUGHGWKHWLWOHWR
*DQGKL>@,QKLVDXWRELRJUDSK\*DQGKLQHYHUWKHOHVVH[SODLQVWKDWKHQHYHUYDOXHGWKHWLWOHDQGZDVRIWHQ
SDLQHGE\LW>@>@>@
,QQXPHUDEOHVWUHHWVURDGVDQGORFDOLWLHVLQ,QGLDDUHQDPHGDIWHU0.*DQGKL7KHVHLQFOXGH0*5RDGWKHPDLQ
VWUHHWRIDQXPEHURI,QGLDQFLWLHVLQFOXGLQJ0XPEDLDQG%DQJDORUH*DQGKL0DUNHWQHDU6LRQ0XPEDLDQG
*DQGKLQDJDUWKHFDSLWDORIWKHVWDWHRI*XMDUDW*DQGKL
VELUWKSODFH>@

)ROORZHUVDQGLQWHUQDWLRQDOLQIOXHQFH
*DQGKLLQIOXHQFHGLPSRUWDQWOHDGHUVDQGSROLWLFDOPRYHPHQWV/HDGHUVRIWKHFLYLO
ULJKWVPRYHPHQWLQWKH8QLWHG6WDWHVLQFOXGLQJ0DUWLQ/XWKHU.LQJ-U-DPHV
/DZVRQDQG-DPHV%HYHOGUHZIURPWKHZULWLQJVRI*DQGKLLQWKHGHYHORSPHQWRI
WKHLURZQWKHRULHVDERXWQRQYLROHQFH>@>@>@ .LQJVDLG&KULVWJDYHXVWKH
JRDOVDQG0DKDWPD*DQGKLWKHWDFWLFV>@.LQJVRPHWLPHVUHIHUUHGWR*DQGKLDV
WKHOLWWOHEURZQVDLQW>@$QWLDSDUWKHLGDFWLYLVWDQGIRUPHU3UHVLGHQWRI6RXWK
$IULFD1HOVRQ0DQGHODZDVLQVSLUHGE\*DQGKL>@ 2WKHUVLQFOXGH.KDQ$EGXO
*KDIIDU.KDQ>@ 6WHYH%LNRDQG$XQJ6DQ6XX.\L>@ 6WDWXHRI0DKDWPD*DQGKLDW
<RUN8QLYHUVLW\
,QKLVHDUO\\HDUVWKHIRUPHU3UHVLGHQWRI6RXWK$IULFD1HOVRQ 0DQGHODZDV D
IROORZHURIWKHQRQYLROHQWUHVLVWDQFHSKLORVRSK\RI*DQGKL>@%KDQDDQG9DKHG
FRPPHQWHGRQWKHVHHYHQWVDV *DQGKLLQVSLUHGVXFFHHGLQJ JHQHUDWLRQVRI6RXWK $IULFDQDFWLYLVWV VHHNLQJWRHQG
:KLWHUXOH7KLVOHJDF\FRQQHFWVKLPWR1HOVRQ0DQGHODLQDVHQVH0DQGHODFRPSOHWHGZKDW*DQGKLVWDUWHG>@

*DQGKL
VOLIHDQGWHDFKLQJVLQVSLUHGPDQ\ZKRVSHFLILFDOO\UHIHUUHGWR*DQGKLDVWKHLUPHQWRURUZKRGHGLFDWHGWKHLU
OLYHV  WR  VSUHDGLQJ  *DQGKL
V  LGHDV  ,Q  (XURSH  5RPDLQ  5ROODQG  ZDV  WKH  ILUVW  WR  GLVFXVV  *DQGKL  LQ  KLV    ERRN

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

0DKDWPD*DQGKLDQG%UD]LOLDQDQDUFKLVWDQGIHPLQLVW0DULD/DFHUGDGH0RXUD
ZURWHDERXW*DQGKLLQKHUZRUNRQSDFLILVP,QQRWDEOH(XURSHDQSK\VLFLVW
$OEHUW  (LQVWHLQ  H[FKDQJHG  ZULWWHQ  OHWWHUV  ZLWK  *DQGKL  DQG  FDOOHG  KLP  D  UROH
PRGHOIRUWKHJHQHUDWLRQVWRFRPHLQDOHWWHUZULWLQJDERXWKLP>@(LQVWHLQVDLG
RI*DQGKL

0DKDWPD  *DQGKL
V  OLIH  DFKLHYHPHQW  VWDQGV  XQLTXH  LQ  SROLWLFDO
KLVWRU\+HKDVLQYHQWHGDFRPSOHWHO\QHZDQGKXPDQHPHDQVIRU
WKH  OLEHUDWLRQ ZDU RI DQ RSSUHVVHG FRXQWU\ DQGSUDFWLVHG LWZLWK
JUHDWHVWHQHUJ\DQG GHYRWLRQ 7KHPRUDOLQIOXHQFHKH KDG RQ WKH
FRQVFLRXVO\WKLQNLQJKXPDQEHLQJRIWKHHQWLUHFLYLOLVHGZRUOGZLOO
SUREDEO\EHPXFKPRUHODVWLQJWKDQLWVHHPVLQRXUWLPHZLWKLWV
RYHUHVWLPDWLRQRIEUXWDOYLROHQWIRUFHV%HFDXVHODVWLQJZLOORQO\EH 0DKDWPD*DQGKLRQD
WKHZRUNRIVXFKVWDWHVPHQZKRZDNHXSDQGVWUHQJWKHQWKHPRUDO SRVWDJHVWDPSRIWKH6RYLHW
SRZHURIWKHLUSHRSOHWKURXJKWKHLUH[DPSOHDQGHGXFDWLRQDOZRUNV 8QLRQ
:HPD\DOOEHKDSS\DQGJUDWHIXOWKDWGHVWLQ\JLIWHGXVZLWKVXFKDQ
HQOLJKWHQHGFRQWHPSRUDU\DUROHPRGHOIRUWKHJHQHUDWLRQVWRFRPH

*HQHUDWLRQV  WR  FRPH  ZLOO  VFDUFH  EHOLHYH  WKDW  VXFK  D  RQH  DV  WKLV

ZDONHGWKHHDUWKLQIOHVKDQGEORRG

/DQ]DGHO 9DVWR ZHQW WR ,QGLD LQ  LQWHQGLQJ WR OLYH  ZLWK  *DQGKL KH ODWHU
UHWXUQHGWR(XURSHWRVSUHDG*DQGKL
VSKLORVRSK\DQGIRXQGHGWKH&RPPXQLW\RI
WKH$UNLQPRGHOOHGDIWHU*DQGKL
VDVKUDPV0DGHOHLQH6ODGHNQRZQDV 0DKDWPD*DQGKLDW3UDoD
0LUDEHKQZDVWKHGDXJKWHURID%ULWLVKDGPLUDOZKRVSHQWPXFKRIKHUDGXOW 7~OLR)RQWRXUD6mR3DXOR
OLIHLQ,QGLDDVDGHYRWHHRI*DQGKL>@>@ %UD]LO6WDWXHE\*DXWDP3DO

,QDGGLWLRQWKH%ULWLVKPXVLFLDQ-RKQ/HQQRQUHIHUUHGWR*DQGKLZKHQGLVFXVVLQJ
KLV  YLHZV  RQ  QRQYLROHQFH>@  $W  WKH  &DQQHV  /LRQV  ,QWHUQDWLRQDO  $GYHUWLVLQJ  )HVWLYDO  LQ    IRUPHU  86  9LFH
3UHVLGHQWDQGHQYLURQPHQWDOLVW$O*RUHVSRNHRI*DQGKL
VLQIOXHQFHRQKLP>@

863UHVLGHQW%DUDFN2EDPDLQDDGGUHVVWRWKH3DUOLDPHQWRI,QGLDVDLGWKDW

,DPPLQGIXOWKDW,PLJKWQRWEHVWDQGLQJEHIRUH\RXWRGD\DV3UHVLGHQWRIWKH8QLWHG6WDWHVKDGLWQRW
EHHQIRU*DQGKLDQGWKHPHVVDJHKHVKDUHGZLWK$PHULFDDQGWKHZRUOG>@

2EDPDLQ6HSWHPEHUVDLG WKDWKLVELJJHVWLQVSLUDWLRQFDPHIURP *DQGKL +LV UHSO\ ZDVLQUHVSRQVH WRWKH

TXHVWLRQ 
:KR  ZDV  WKH  RQH  SHUVRQ  GHDG  RU  OLYH  WKDW  \RX  ZRXOG  FKRRVH  WR  GLQH  ZLWK"
  +H  FRQWLQXHG  WKDW  +H
V
VRPHERG\,ILQGDORWRILQVSLUDWLRQLQ+HLQVSLUHG'U.LQJZLWKKLVPHVVDJHRIQRQYLROHQFH+HHQGHGXSGRLQJVR
PXFKDQGFKDQJHGWKHZRUOGMXVWE\WKHSRZHURIKLVHWKLFV>@

7LPH0DJD]LQHQDPHG7KHWK'DODL/DPD/HFK:DáĊVD0DUWLQ/XWKHU.LQJ&HVDU&KDYH]$XQJ6DQ6XX.\L
%HQLJQR  $TXLQR  -U  'HVPRQG  7XWX  DQG  1HOVRQ  0DQGHOD  DV  &KLOGUHQ  RI  *DQGKL  DQG  KLV  VSLULWXDO  KHLUV  WR
QRQYLROHQFH>@7KH0DKDWPD*DQGKL'LVWULFWLQ+RXVWRQ7H[DV8QLWHG6WDWHVDQHWKQLF,QGLDQHQFODYHLVRIILFLDOO\
QDPHGDIWHU*DQGKL>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

*OREDOGD\VWKDWFHOHEUDWH*DQGKL
,QWKH8QLWHG1DWLRQV*HQHUDO$VVHPEO\GHFODUHG*DQGKL
VELUWKGD\2FWREHUDVWKH,QWHUQDWLRQDO 'D\  RI
1RQYLROHQFH>@  )LUVW  SURSRVHG  E\  81(6&2  LQ    DV  WKH  6FKRRO  'D\  RI  1RQYLROHQFH  DQG  3HDFH  '(1,3  LQ
6SDQLVK>@-DQXDU\LVREVHUYHGDVWKH6FKRRO'D\RI1RQYLROHQFHDQG3HDFHLQVFKRROVRIPDQ\FRXQWULHV>@,Q
FRXQWULHVZLWKD6RXWKHUQ+HPLVSKHUHVFKRROFDOHQGDULWLVREVHUYHGRQ0DUFK>@

$ZDUGV
7LPHPDJD]LQHQDPHG*DQGKLWKH0DQRIWKH<HDULQ7KH8QLYHUVLW\
RI1DJSXUDZDUGHGKLPDQ//'LQ>@*DQGKLZDVDOVRWKHUXQQHU
XSWR$OEHUW(LQVWHLQDV3HUVRQRIWKH&HQWXU\>@DWWKHHQGRI7KH
*RYHUQPHQW  RI  ,QGLD  DZDUGHG  WKH  DQQXDO  *DQGKL  3HDFH  3UL]H  WR
GLVWLQJXLVKHGVRFLDOZRUNHUVZRUOGOHDGHUVDQGFLWL]HQV1HOVRQ0DQGHOD
WKHOHDGHURI6RXWK$IULFD
VVWUXJJOHWRHUDGLFDWHUDFLDOGLVFULPLQDWLRQDQG
VHJUHJDWLRQZDVDSURPLQHQWQRQ,QGLDQUHFLSLHQW,Q7LPHPDJD]LQH
QDPHG*DQGKLDVRQHRIWKHWRSSROLWLFDOLFRQVRIDOOWLPH>@

*DQGKLGLGQRWUHFHLYHWKH1REHO3HDFH3UL]HDOWKRXJKKHZDVQRPLQDWHG
ILYHWLPHVEHWZHHQDQGLQFOXGLQJWKHILUVWHYHUQRPLQDWLRQE\
WKH$PHULFDQ)ULHQGV6HUYLFH&RPPLWWHH>@WKRXJKKHPDGHWKHVKRUWOLVW
RQO\  WZLFH  LQ    DQG  >@  'HFDGHV  ODWHU  WKH  1REHO  &RPPLWWHH
SXEOLFO\GHFODUHGLWVUHJUHWIRUWKHRPLVVLRQDQGDGPLWWHGWRGHHSO\GLYLGHG
QDWLRQDOLVWLF  RSLQLRQ  GHQ\LQJ  WKH  DZDUG>@  *DQGKL  ZDV  QRPLQDWHG  LQ
0RQXPHQWWR0.*DQGKLLQ
  EXW  ZDV  DVVDVVLQDWHG  EHIRUH  QRPLQDWLRQV  FORVHG  7KDW  \HDU  WKH
0DGULG6SDLQ
FRPPLWWHHFKRVHQRWWRDZDUGWKHSHDFHSUL]HVWDWLQJWKDWWKHUHZDVQR
VXLWDEOHOLYLQJFDQGLGDWHDQGODWHUUHVHDUFKVKRZVWKDWWKHSRVVLELOLW\RI
DZDUGLQJWKHSUL]HSRVWKXPRXVO\WR*DQGKLZDVGLVFXVVHGDQGWKDWWKHUHIHUHQFHWRQRVXLWDEOHOLYLQJFDQGLGDWHZDVWR
*DQGKL>@ *HLU/XQGHVWDG6HFUHWDU\RI1RUZHJLDQ1REHO&RPPLWWHHLQVDLG7KHJUHDWHVWRPLVVLRQLQRXU
\HDUKLVWRU\LVXQGRXEWHGO\WKDW0DKDWPD*DQGKLQHYHUUHFHLYHGWKH1REHO3HDFHSUL]H*DQGKLFRXOGGRZLWKRXW
WKH1REHO3HDFHSUL]HZKHWKHU1REHOFRPPLWWHHFDQGRZLWKRXW*DQGKLLVWKHTXHVWLRQ>@ :KHQWKHWK 'DODL
/DPDZDVDZDUGHGWKH3UL]HLQWKHFKDLUPDQRIWKHFRPPLWWHHVDLGWKDWWKLVZDVLQSDUWDWULEXWHWRWKHPHPRU\
RI0DKDWPD*DQGKL>@

)DWKHURIWKH1DWLRQ
,QGLDQVZLGHO\GHVFULEH*DQGKLDVWKHIDWKHURIWKHQDWLRQ>@>@2ULJLQRIWKLVWLWOHLVWUDFHGEDFNWRDUDGLRDGGUHVVRQ
6LQJDSRUH UDGLR  RQ  -XO\   E\  6XEKDVK  &KDQGUD %RVH  ZKHUH  %RVH  DGGUHVVHG  *DQGKL  DV  7KH  )DWKHU  RI  WKH
1DWLRQ>@ 2Q$SULO6DURMLQL1DLGXGXULQJDFRQIHUHQFHDOVRUHIHUUHG*DQGKLDV)DWKHURIWKH1DWLRQ
>@>@

)LOPWKHDWUHDQGOLWHUDWXUH
$    KRXUV    PLQXWHV  ORQJ  ELRJUDSKLFDO  GRFXPHQWDU\  ILOP>@ 0DKDWPD  /LIH  RI  *DQGKL  ±  PDGH  E\
9LWKDOEKDL-KDYHUL>@ LQTXRWLQJ*DQGKL
VZRUGVDQGXVLQJEODFN ZKLWHDUFKLYDOIRRWDJHDQGSKRWRJUDSKV
FDSWXUHVWKHKLVWRU\RIWKRVHWLPHV %HQ.LQJVOH\SRUWUD\HGKLPLQ5LFKDUG$WWHQERURXJK
VILOP*DQGKL>@

RI $0
0DKDWPD*DQGKL:LNLSHGLD KWWSVHQZLNLSHGLDRUJZLNL0DKDWPDB*DQGKL

ZKLFKZRQWKH$FDGHP\$ZDUGIRU%HVW3LFWXUH7KHILOP7KH0DNLQJRIWKH0DKDWPDGRFXPHQWHG*DQGKL
V
WLPHLQ6RXWK$IULFDDQGKLVWUDQVIRUPDWLRQIURPDQLQH[SHULHQFHGEDUULVWHUWRUHFRJQLVHGSROLWLFDOOHDGHU>@*DQGKL
ZDVDFHQWUDOILJXUHLQWKH%ROO\ZRRGFRPHG\ILOP/DJH5DKR0XQQD%KDL-DKQX%DUXD
V0DLQH*DQGKL.R
1DKLQ0DUD,GLGQRWNLOO*DQGKLSODFHVFRQWHPSRUDU\VRFLHW\DVDEDFNGURSZLWKLWVYDQLVKLQJPHPRU\RI*DQGKL
V
YDOXHVDVDPHWDSKRUIRUWKHVHQLOHIRUJHWIXOQHVVRIWKHSURWDJRQLVWRIKLVILOP>@ZULWHV9LQD\/DO>@

7KHRSHUD6DW\DJUDKDE\$PHULFDQFRPSRVHU3KLOLS*ODVVLVORRVHO\EDVHGRQ*DQGKL
VOLIH>@>@7KHRSHUD
V
OLEUHWWRWDNHQIURPWKH%KDJDYDG*LWDLVVXQJLQWKHRULJLQDO6DQVNULW>@

$QWL*DQGKLWKHPHVKDYHDOVREHHQVKRZFDVHGWKURXJKILOPVDQGSOD\V7KH0DUDWKLSOD\*DQGKL9LUXGK*DQGKL
H[SORUHGWKHUHODWLRQVKLSEHWZHHQ*DQGKLDQGKLVVRQ+DULODO7KHILOP*DQGKL0\)DWKHUZDVLQVSLUHGRQWKH
VDPHWKHPH7KH0DUDWKLSOD\0H1DWKXUDP*RGVH%ROWR\DQGWKH+LQGLSOD\*DQGKL$PEHGNDUFULWLFLVHG
*DQGKLDQGKLVSULQFLSOHV>@>@

6HYHUDOELRJUDSKHUVKDYHXQGHUWDNHQWKHWDVNRIGHVFULELQJ*DQGKL
VOLIH$PRQJWKHPDUH'*7HQGXONDUZLWKKLV
0DKDWPD/LIHRI0RKDQGDV.DUDPFKDQG*DQGKLLQHLJKWYROXPHV&KDPDQ1DKDO
V*DQGKL4XDUWHWDQG3\DUHODO
DQG6XVKLOD1D\\DUZLWKWKHLU0DKDWPD*DQGKLLQYROXPHV7KHELRJUDSK\*UHDW6RXO0DKDWPD*DQGKL
DQG+LV6WUXJJOH:LWK,QGLDE\-RVHSK/HO\YHOGFRQWDLQHGFRQWURYHUVLDOPDWHULDOVSHFXODWLQJDERXW*DQGKL
VVH[XDO
OLIH>@/HO\YHOGKRZHYHUVWDWHGWKDWWKHSUHVVFRYHUDJHJURVVO\GLVWRUW>V@WKHRYHUDOOPHVVDJHRIWKHERRN>@ 7KH
ILOP:HOFRPH%DFN*DQGKLWDNHVDILFWLRQDOLVHGORRNDWKRZ*DQGKLPLJKWUHDFWWRPRGHUQGD\,QGLD>@

0DKDWPD*DQGKLLVXVHGE\&ROH3RUWHULQKLVO\ULFVIRUWKHVRQJ<RX
UHWKH7RSZKLFKLVLQFOXGHGLQWKH
PXVLFDO$Q\WKLQJ*RHV,QWKHVRQJ3RUWHUUK\PHV0DKDWPD*DQGKL
ZLWK1DSROHRQ%UDQG\

&XUUHQWLPSDFWZLWKLQ,QGLD
,QGLD  ZLWK  LWV  UDSLG  HFRQRPLF  PRGHUQLVDWLRQ  DQG  XUEDQLVDWLRQ  KDV
UHMHFWHG  *DQGKL
V  HFRQRPLFV>@  EXW  DFFHSWHG  PXFK  RI  KLV  SROLWLFV  DQG
FRQWLQXHVWRUHYHUHKLVPHPRU\5HSRUWHU-LP<DUGOH\QRWHVWKDWPRGHUQ
,QGLDLVKDUGO\D*DQGKLDQQDWLRQLILWHYHUZDVRQH+LVYLVLRQRIDYLOODJH
GRPLQDWHG  HFRQRP\  ZDV  VKXQWHG  DVLGH  GXULQJ  KLV  OLIHWLPH  DV  UXUDO
URPDQWLFLVP  DQG  KLV  FDOO  IRU  D QDWLRQDO  HWKRV  RI SHUVRQDO DXVWHULW\ DQG
QRQYLROHQFHKDVSURYHGDQWLWKHWLFDOWRWKHJRDOVRIDQDVSLULQJHFRQRPLF
DQG PLOLWDU\  SRZHU  %\  FRQWUDVW *DQGKL  LV  JLYHQ  IXOO  FUHGLW  IRU  ,QGLD
V
7KH*DQGKL0DQGDSDPDWHPSOHLQ
SROLWLFDOLGHQWLW\DVDWROHUDQWVHFXODUGHPRFUDF\>@ .DQ\DNXPDUL7DPLO1DGXLQ,QGLD
ZDVHUHFWHGWRKRQRXU0.*DQGKL
*DQGKL
VELUWKGD\2FWREHULVDQDWLRQDOKROLGD\LQ,QGLD*DQGKL-D\DQWL
*DQGKL
VLPDJHDOVRDSSHDUVRQSDSHUFXUUHQF\RIDOOGHQRPLQDWLRQVLVVXHG
E\5HVHUYH%DQNRI,QGLDH[FHSWIRUWKHRQHUXSHHQRWH>@*DQGKL
VGDWHRIGHDWK-DQXDU\LVFRPPHPRUDWHGDVD
0DUW\UV
'D\LQ,QGLD>@

7KHUHDUHWKUHHWHPSOHVLQ,QGLDGHGLFDWHGWR*DQGKL>@ 2QHLVORFDWHGDW6DPEDOSXULQ2ULVVDDQGWKHVHFRQGDW
1LGDJKDWWDYLOODJHQHDU.DGXULQ&KLNPDJDOXUGLVWULFWRI.DUQDWDNDDQGWKHWKLUGRQHDW &KLW\DOLQWKHGLVWULFWRI
1DOJRQGD7HODQJDQD>@>@7KH*DQGKL0HPRULDOLQ.DQ\DNXPDULUHVHPEOHVFHQWUDO,QGLDQ+LQGXWHPSOHVDQGWKH
7DPXNNDPRU6XPPHU3DODFHLQ0DGXUDLQRZKRXVHVWKH0DKDWPD*DQGKL0XVHXP>@

RI $0
Mahatma Gandhi
Fast Facts

Date of Birth: October 2, 1869

Place of Birth: Porbandar, British India (now Gujarat)

Date of Death: January 30, 1948

Place of Death: Delhi, India

Cause of Death: Assassination

Professions: Lawyer, politician, activist, writer

Spouse: Kasturba Gandhi

Children: Harilal Gandhi, Manilal Gandhi, Ramdas Gandhi and Devdas Gandhi

Father: Karamchand Uttamchand Gandhi

Mother: Putlibai Gandhi

Mohandas Karamchand Gandhi was an eminent freedom activist and an influential political leader who played
a dominant role in India's struggle for independence. Gandhi is known by different names, such as Mahatma
(a great soul), Bapuji (endearment for father in Gujarati) and Father of the Nation. Every year, his birthday is
celebrated as Gandhi Jayanti, a national holiday in India, and also observed as the International Day of
Nonviolence. Mahatma Gandhi, as he is most commonly referred to, was instrumental in liberating India from
the clutches of the British. With his unusual yet powerful political tools of Satyagraha and non-violence, he
inspired several other political leaders all over the world including the likes of Nelson Mandela, Martin Luther
King Jr and Aung San Suu Kyi. Gandhi, apart from helping India triumph in its fight for independence against
the English, also led a simple and righteous life, for which he is often revered. Gandhi's early life was pretty
much ordinary, and he became a great man during the course of his life. This is one of the main reasons why
Gandhi is followed by millions, for he proved that one can become a great soul during the course of one’s life,
should they possess the will to do so.

Image Credit:

Childhood

M. K. Gandhi was born in the princely state of Porbandar, which is located in modern-day Gujarat. He was
born into a Hindu merchant caste family to Karamchand Gandhi, diwan of Porbandar and his fourth wife,
Putlibai. Gandhi’s mother belonged to an affluent Pranami Vaishnava family. As a child, Gandhi was a very
naughty and mischievous kid. In fact, his sister Raliat had once revealed that hurting dogs by twisting their
ears was among Maohandas’ favorite pastime. During the course of his childhood, Gandhi befriended Sheikh
Mehtab, who was introduced to him by his older brother. Gandhi, who was raised by a vegetarian family,
started eating meat. It is also said that a young Gandhi accompanied Sheikh to a brothel, but left the place after
finding it uncomfortable. Gandhi, along with one of his relatives, also cultivated the habit of smoking after
watching his uncle smoke. After smoking the leftover cigarettes, thrown away by his uncle, Gandhi started
stealing copper coins from his servants in order to buy Indian cigarettes. When he could no longer steal, he
even decided to commit suicide such was Gandhi’s addiction to cigarettes. At the age of fifteen, after stealing
a bit of gold from his friend Sheikh’s armlet, Gandhi felt remorseful and confessed to his father about his
stealing habit and vowed to him that he would never commit such mistakes again.

Early Life

In his early years, Gandhi was deeply influenced by the stories of Shravana and Harishchandra that reflected
the importance of truth. Through these stories and from his personal experiences, he realized that truth and
love are among the supreme values. Mohandas married Kasturba Makhanji at the age of 13. Gandhi later went
on to reveal that the marriage didn’t mean anything to him at that age and that he was happy and excited only
about wearing new set of clothes. But then as days passed by, his feelings for her turned lustful, which he later
confessed with regret in his autobiography. Gandhi had also confessed that he could no more concentrate in
school because of his mind wavering towards his new and young wife.

Image Credit:

Education

After his family moved to Rajkot, a nine year old Gandhi was enrolled at a local school, where he studied the
basics of arithmetic, history, geography and languages. When he was 11 years old, he attended a high school
in Rajkot. He lost an academic year in between because of his wedding but later rejoined the school and
eventually completed his schooling. He then dropped out of Samaldas College in Bhavnagar State after joining
it in the year 1888. Later Gandhi was advised by a family friend Mavji Dave Joshiji to pursue law in London.
Excited by the idea, Gandhi managed to convince his mother and wife by vowing before them that he would
abstain from eating meat and from having sex in London. Supported by his brother, Gandhi left to London
and attended the Inner Temple and practiced law. During his stay in London, Gandhi joined a Vegetarian
Society and was soon introduced to Bhagavad Gita by some of his vegetarian friends. The contents of
Bhagavad Gita would later have a massive influence on his life. He came back to India after being called to
the bar by Inner Temple.

Gandhi in South Africa

After returning to India, Gandhi struggled to find work as a lawyer. In 1893, Dada Abdullah, a merchant who
owned a shipping business in South Africa asked if he would be interested to serve as his cousin’s lawyer in
South Africa. Gandhi gladly accepted the offer and left to South Africa, which would serve as a turning point
in his political career.
In South Africa, he faced racial discrimination directed towards blacks and Indians. He faced humiliation on
many occasions but made up his mind to fight for his rights. This turned him into an activist and he took upon
him many cases that would benefit the Indians and other minorities living in South Africa. Indians were not
allowed to vote or walk on footpaths as those privileges were limited strictly to the Europeans. Gandhi
questioned this unfair treatment and eventually managed to establish an organization named ‘Natal Indian
Congress’ in 1894. After he came across an ancient Indian literature known as ‘Tirukkural’, which was
originally written in Tamil and later translated into many languages, Gandhi was influenced by the idea of
Satyagraha (devotion to the truth) and implemented non-violent protests around 1906. After spending 21 years
in South Africa, where he fought for civil rights, he had transformed into a new person and he returned to
India in 1915.

Image Credit:

Gandhi and the Indian National Congress

After his long stay in South Africa and his activism against the racist policy of the British, Gandhi had earned
the reputation as a nationalist, theorist and organiser. Gopal Krishna Gokhale, a senior leader of the Indian
National Congress, invited Gandhi to join India’s struggle for independence against the British Rule. Gokhale
thoroughly guided Mohandas Karamchand Gandhi about the prevailing political situation in India and also
the social issues of the time. He then joined the Indian National Congress and before taking over the leadership
in 1920, headed many agitations which he named Satyagraha.

Image source: https://www.pinterest.com/pin/17029304817074165/

Champaran Satyagraha

The Champaran agitation in 1917 was the first major success of Gandhi after his arrival in India. The peasants
of the area were forced by the British landlords to grow Indigo, which was a cash crop, but its demand had
been declining. To make the matters worse, they were forced to sell their crops to the planters at a fixed price.
The farmers turned to Gandhiji for help. Pursuing a strategy of nonviolent agitation, Gandhi took the
administration by surprise and was successful in getting concessions from the authorities. This campaign
marked Gandhi’s arrival in India!

Kheda Satyagraha

Farmers asked the British to relax the payment of taxes as Kheda was hit by floods in 1918. When the British
failed to pay heed to the requests, Gandhi took the case of the farmers and led the protests. He instructed them
to refrain from paying revenues no matter what. Later, the British gave in and accepted to relax the revenue
collection and gave its word to Vallabhbhai Patel, who had represented the farmers.

Image source: YouTube.com

Khilafat Movement Post World War I

Gandhi had agreed to support the British during their fight in World War I. But the British failed to grant
independence post the war, as promised earlier, and as a result of this Khilafat Movement was launched.
Gandhi realized that Hindus and Muslims must unite to fight the British and urged both the communities to
show solidarity and unity. But his move was questioned by many Hindu leaders. Despite the opposition from
many leaders, Gandhi managed to amass the support of Muslims. But as the Khilafat Movement ended
abruptly, all his efforts evaporated into thin air.

Non-cooperation Movement and Gandhi

Non-cooperation Movement was one of Gandhi’s most important movements against the British. Gandhi’s
urged his fellow countrymen to stop co-operation with the British. He believed that the British succeeded in
India only because of the co-operation of the Indians. He had cautioned the British not to pass the Rowlatt
Act, but they did not pay any attention to his words and passed the Act. As announced, Gandhiji asked
everyone to start civil disobedience against the British. The British began suppressing the civil disobedience
movement by force and opened fire on a peaceful crowd in Delhi. The British asked Gandhiji to not enter
Delhi which he defied as a result of which he was arrested and this further enraged people and they rioted. He
urged people to show unity, non-violence and respect for human life. But the British responded aggressively
to this and arrested many protesters.
On 13 April 1919, a British officer, Dyer, ordered his forces to open fire on a peaceful gathering, including
women and children, in Amritsar’s Jallianwala Bagh. As a result of this, hundreds of innocent Hindu and Sikh
civilians were killed. The incident is known as ‘Jallianwala Bagh Massacre’. But Gandhi criticized the
protesters instead of blaming the English and asked Indians to use love while dealing with the hatred of British.
He urged the Indians to refrain from all kinds of non-violence and went on fast-to-death to pressure Indians
to stop their rioting.

Image source: Wikimedia.org

Swaraj

The concept of non-cooperation became very popular and started spreading through the length and breadth of
India. Gandhi extended this movement and focused on Swaraj. He urged people to stop using British goods.
He also asked people to resign from government employment, quit studying in British institutions and stop
practicing in law courts. However, the violent clash in Chauri Chaura town of Uttar Pradesh, in February 1922,
forced Gandhiji to call-off the movement all of a sudden. Gandhi was arrested on 10th March 1922 and was
tried for sedition. He was sentenced to six years imprisonment, but served only two years in prison.

Simon Commission & Salt Satyagraha (Dandi March)

During the period of 1920s, Mahatma Gandhi concentrated on resolving the wedge between the Swaraj Party
and the Indian National Congress. In 1927, British had appointed Sir John Simon as the head of a new
constitutional reform commission, popularly known as ‘Simon Commission’. There was not even a single
Indian in the commission. Agitated by this, Gandhi passed a resolution at the Calcutta Congress in December
1928, calling on the British government to grant India dominion status. In case of non-compliance with this
demand, the British were to face a new campaign of non-violence, having its goal as complete independence
for the country. The resolution was rejected by the British. The flag of India was unfurled by the Indian
national Congress on 31st December 1929 at its Lahore session. January 26, 1930 was celebrated as the
Independence Day of India.

But the British failed to recognize it and soon they levied a tax on salt and Salt Satyagraha was launched in
March 1930, as an opposition to this move. Gandhi started the Dandi March with his followers in March,
going from Ahmedabad to Dandi on foot. The protest was successful and resulted in the Gandhi-Irwin Pact in
March 1931.
Image Credit:

Negotiations over Round Table Conferences

Post the Gandhi-Irwin Pact, Gandhi was invited to round table conferences by the British. While Gandhi
pressed for the Indian independence, British questioned Gandhi’s motives and asked him not to speak for the
entire nation. They invited many religious leaders and B. R. Ambedkar to represent the untouchables. The
British promised many rights to various religious groups as well as the untouchables. Fearing this move would
divide India further, Gandhi protested against this by fasting. After learning about the true intentions of the
British during the second conference, he came up with another Satyagraha, for which he was once again
arrested.

Quit India Movement

As the World War II progressed, Mahatma Gandhi intensified his protests for the complete independence of
India. He drafted a resolution calling for the British to Quit India. The 'Quit India Movement' or the 'Bharat
Chhodo Andolan' was the most aggressive movement launched by the Indian national Congrees under the
leadership of Mahatma Gandhi. Gandhi was arrested on 9th August 1942 and was held for two years in the
Aga Khan Palace in Pune, where he lost his secretary, Mahadev Desai and his wife, Kasturba. The Quit India
Movement came to an end by the end of 1943, when the British gave hints that complete power would be
transferred to the people of India. Gandhi called off the movement which resulted in the release of 100,000
political prisoners.

Image Credit:

Freedom and Partition of India

The independence cum partition proposal offered by the British Cabinet Mission in 1946 was accepted by
the Congress, despite being advised otherwise by Mahatma Gandhi. Sardar Patel convinced Gandhi that it
was the only way to avoid civil war and he reluctantly gave his consent. After India's independence, Gandhi
focused on peace and unity of Hindus and Muslims. He launched his last fast-unto-death in Delhi, and asked
people to stop communal violence and emphasized that the payment of Rs. 55 crores, as per the Partition
Council agreement, be made to Pakistan. Ultimately, all political leaders conceded to his wishes and he
broke his fast.
Assassination of Mahatma Gandhi

The inspiring life of Mahatma Gandhi came to an end on 30th January 1948, when he was shot by a fanatic,
Nathuram Godse, at point-blank range. Nathuram was a Hindu radical, who held Gandhi responsible for
weakening India by ensuring the partition payment to Pakistan. Godse and his co-conspirator, Narayan Apte,
were later tried and convicted. They were executed on 15th November 1949.

Image Credit:

Mahatma Gandhi’s Legacy

Mahatma Gandhi proposed the acceptance and practice of truth, non-violence, vegetarianism, Brahmacharya
(celibacy), simplicity and faith in God. Though he would be remembered forever as the man who fought for
Indian independence, his greatest legacies are the tools he used in his fight against the British. These methods
inspired several other world leaders in their struggle against injustice. His statues are installed all over the
world and he is considered the most prominent personality in Indian history.

Gandhi in Popular Culture

The word Mahatma is often mistaken in the West as Gandhi’s first name. His extraordinary life inspired
innumerable works of art in the field of literature, art and showbiz. Many movies and documentaries have
been made on the life of the Mahatma. Post the Independence, Gandhi’s image became the mainstay of Indian
paper currency.