Mishcon's Culture vs Corruption Diary - August 2010
Welcome to the August 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 has been 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 which forms the subject matter of this bulletin. We simply aim to bring these matters to the attention of those involved in the prevention, detection and investigation of fraud.
UNITED KINGDOM
Legislation
The implementation of the long-awaited Bribery Act,which will open companies to prosecution if they negligently fail to prevent staff or representatives from paying bribes, has been delayed by six months - a move which anti-corruption activists claim could lead to it being watered down.
James Boxell
Financial Times, 21 July 2010
Reports and surveys
According to a new study by BDO, UK businesses lost more than £1bn to publicly reported fraud in the first six months of the year. This is slightly more than during the same period of 2009, which also experienced a jump in the number of fraudulent activities after steep rises in the previous two years.
Julie Carr Smyth
The Independent, 17 July 2010
WESTERN EUROPE
Government
In proposals that would mean corrupt foreign officials seeing money stashed in Swiss banks seized more easily, the Swiss parliament is examining a plan to give the government tougher powers to take over bank accounts and return the contents to the states from which they were stolen.
Michael Peel
Financial Times, 12 June 2010
Reports and surveys
According to a new report by Transparency International (TI), the number of countries enforcing a ban on foreign bribery has shown continuous progress in the last six years but there is still much to do. The report shows that 7 of the 36 countries evaluated, representing approximately 30% of world exports, are actively enforcing the OECD Anti-Bribery Convention to which they are parties.
TI Press Release, 28 July 2010
Banking
Kosovo's central bank governor, Hashim Rexhepi, has been arrested as part of European Union corruption investigations. Mr Rexhepi is suspected of abuse of office, taking bribes, tax evasion and money laundering.
Neil MacDonald
Financial Times, 24 July 2010
AFRICA
Police
A former South African police chief and Interpol head, Jackie Selebi, has been found guilty of corruption following a trial for accepting $155,000 and receiving gifts from a convicted drug trafficker and two other businessmen in exchange for favours.
Richard Lapper
Financial Times, 3 July 2010
ASIA
Government
Wen Qiang,the former top justice official and deputy head of police in the Chinese city of Chongqing, has been executed having been found guilty of taking bribes, shielding organised crime gangs and hiding financial assets.
Geoff Dyer
Financial Times, 8 July 2010
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 Fraud Network, made up of international legal fraud specialists, and the Financial Risk Group, for risk and compliance officers.