Briefings

Mishcon's Culture vs Corruption Diary

Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
February 2008

Welcome to the February 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

Defence

The High Court has ruled that the Crown Prosecution Service (CPS) cannot pursue Gordon Foxley, the former head of procurement at the MOD, to settle a £1.5m confiscation order.  The court found that the CPS delayed enforcing the order for too long.  Mr Foxley was sentenced to four years in jail in 1994 after being found guilty of taking bribes from arms manufacturers.
The Guardian, 18 January 2008

Western Europe

Government

Clemente Mastella, the Italian justice minister, has resigned following reports that he is under investigation for alleged corruption.  Mr Mastella's wife is currently under arrest on charges of corruption.  Both Mr and Mrs Mastella deny any wrongdoing
Financial Times, 17 January 2008

North Africa

International Development

Jacob Zuma, the ANC leader, has been charged with alleged corruption, fraud and money laundering.  The charges are in connection with a multi-billion-pound arms deal from the late 1990s.  Mr Zuma denies all the charges.
The Daily Telegraph, 29 December 2007

Asia

Government

Potjaman Shinawatra, the wife of the deposed Thai Prime Minister, has been arrested on charges of corruption.  The charges related to alleged corruption in connection with the purchase of a 772m baht plot of land in 2003.  Mrs Shinawatra returned to Thailand from self-imposed exile in a bid to clear her name
The Times, 9 January 2008

Ma Ying-jeou, a member of the Taiwan opposition party, has been cleared of corruption charges relating to the misuse of almost $350,000.
Financial Times, 29 December 2007

Sport

Yu Zhifei, former chief of Shanghai's F1 track, has been sentenced to four years in prison after being found guilty of embezzling 1.05m yuan in connection with a scheme to buy property at a reduced price.
The Daily Telegraph, 4 January 2008

International Organisations

Reports

The World Bank will implement all the recommendations of the Volcker report, which analysed the institution's anti-corruption unit and recommended that it be placed under new supervision.
Financial Times, 24 January 2008

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: 13 February 2008

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