Mishcon's Culture vs Corruption Diary - October 2009
Welcome to the October 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 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
Engineering
Mabey & Johnson, the engineering company, has been fined a total of £6.6m after the company admitted to foreign corruption and breaching United Nations sanctions against Iraq. The case is the first prosecution of its kind in the UK.
Christopher Hope
The Daily Telegraph, 26 September 2009
EUROPE
Government
The Paris public prosecutor's office has decided the former French President, Jacques Chirac, has 'no case to answer' following a ten-year investigation into the alleged embezzlement of public funds.
John Lichfield
The Independent, 30 September 2009
EASTERN EUROPE
Government
Hundreds of Bulgarian customs and excise officers face dismissal as part of a crack down on corruption and organised crime.
Kerin Hope
Financial Times, 16 September 2009
ASIA
Government
Susilo Bambang Yudhoyono, Indonesia's President, has suspended two of the acting chairmen of the country's anti-corruption commission (KPK) after police named them as criminal suspects. Police claim that Chandra Hamzah and Bibit Rianto misused their powers in issuing and revoking travel bans on two businessmen under investigation by the KPK.
John Aglionby
Financial Times, 17 September 2009
Chen Shui-bian, the former Taiwan President, has been sentenced to life in prison after being found guilty of embezzling state funds, accepting bribes and money laundering. Mr Chen's wife and children were also found guilty of charges relating to corruption.
Robin Kwong
Financial Times, 12 September 2009
NORTH AMERICA
Government
The US Department of Justice is investigating Gale Norton, a former member of President Bush's cabinet, in connection with alleged corruption relating to the award of leases of federal land to Shell for shale-oil development. Ms Norton works for Shell as General Counsel.
Carl Mortished
The Times, 18 September 2009
INTERNATIONAL ORGANISATIONS
Reports
Corruption is responsible for increasing costs to businesses by an estimated 10%, according to a report by Transparency International.
Global Corruption Report 2009: Corruption in the Private Sector, 23 September 2009
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.