Briefings

Mishcon's Culture vs Corruption Diary

Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
December 2007

Welcome to the December edition of Mishcon's Culture vs Corruption Diary, the object of this diary is to provide businesses and their advisors with a snapshot of what is happening in the world of corruption in the last month.

We make no judgement whatsoever as to the morality, legality or appropriateness of the conduct that forms the subject matter of this diary.  We simply aim to bring these matters to the attention of those whose responsibility it is to set ethical standards and produce business practice guidelines for the companies they work for, to allow them to make an informed decision on the best practice for their organisation.

United Kingdom

Consultations

The Law Commission has published a consultation document setting out proposals for reforming bribery legislation. 
'Reforming Bribery', The Law Commission, 29 November 2007

Government

Peter Watt has resigned as General Secretary to the Labour party following his admission that he knew that donations of over £600,000 were made by David Abrahams through several intermediaries.  The Electoral Commission is investigating donations made to Harriet Harman and Wendy AlexanderMs Harman and Ms Alexander both deny any wrongdoing.
The Observer, 2 December 2007

Defence

The High Court has ordered a judicial review of the decision by the Serious Fraud Office to end its investigation into a £40bn arms contract between BAE Systems and Saudi Arabia
The Daily Telegraph, 10 November 2007

Police

Anti-corruption officers are investigating millions of pounds worth of expense claims made by officers in the Metropolitan Police.
The Daily Telegraph, 12 November 2007

Europe

Government

Jacques Chirac, the former French President, has been placed under official investigation for corruption.  Preliminary charges have been filed alleging Mr Chirac embezzled or misused public funds during the time he was mayor of Paris.  Mr Chirac denies any wrongdoing.
The Daily Telegraph, 22 November 2007

Middle East

Government

Israeli police have said that they do not have sufficient evidence to bring a criminal case against Ehud Olmert, the Prime Minister, over allegations that he acted corruptly in the 2005 privatisation of an Israeli bank.
Financial Times, 30 November 2007

South America

Government

The World Bank has decided to defer approval of a US$232m loan to the Philippines for infrastructure projects until after the completion of an internal investigation into alleged bid rigging and overpricing in World Bank-funded road projects.
Financial Times, 22 November 2007

Asia

Electronics

Kim Yong-chul, a former in-house lawyer at Samsung in South Korea has made allegations of corruption against the company
Sunday Times, 2 December 2007

Government

Prosecutors in Japan have arrested Takemasa Moriya, the former Vice-Minister of Defence, in connection with an ongoing investigation into alleged collusion between defence contractors and the ministry.
Financial Times, 29 November 2007

South Africa

Government

The South African Supreme Court has upheld appeals made by the state against earlier rulings preventing prosecutors from using documents seized from Jacob Zuma during a raid by anti-corruption officials.  The ruling clears the way for new corruption charges to be lodged against Mr Zuma.
The Independent, 9 November 2007

Mishcon de Reya

Mishcon's Culture vs Corruption Diary is published by the Fraud & Insolvency Group of Mishcon de Reya Solicitors.  Widely recognised as the leader in the field of fraud investigations, the Group has extensive experience in conducting and/or project managing highly sensitive international investigations in respect of bribery and corruption allegations.  The Group founded and runs both the Asset Protection & Recovery Network, made up of international legal fraud specialists, and the Financial Fraud Group, for risk and compliance officers.

 

IMPORTANT: This briefing note is only intended as a general statement of the law and no action should be taken in reliance on it without specific legal advice. Release Date: 27 December 2007

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