Mishcon's Culture vs Corruption Diary - August 2009
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 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
Energy
The High Court in London has ordered a National Grid engineer to repay almost £1m after he was found guilty of taking bribes and defrauding the company.
The Times, 22 July 2009
Serious Fraud Office (SFO)
Mabey & Johnson Ltd has pleaded guilty to charges of corruption and breaching UN sanctions at Westminster Magistrates Court. This is the first prosecution brought in the UK against a company for overseas corruption. The prosecution followed the company's voluntary disclosure to the SFO of evidence to indicate that the company had tried to influence decision-makers in public contracts in Jamaica and Ghana between 1993 and 2001.
Christopher Hope
The Daily telegraph, 11 July 2009
NORTH AMERICA
Government
More than 40 elected officials and Jewish community leaders have been arrested in New Jersey and Brooklyn in connection with an ongoing investigation into money laundering, bribery and the sale of human organs.
David Usborne
The Independent, 24 July 2009
AFRICA
Government
The Somali government has asked PriceWaterhouseCoopers to set up systems to track money donated to the country by international organisations and governments. The move follows demands from international donors for the country to take action to prevent corruption.
Barney Jopson
Financial Times, 8 July 2009
ASIA
Commodities
The Chinese state media has claimed that Rio Tinto bribed executives at 16 Chinese steel mills that were involved in negotiations over the price of iron ore. Rio Tinto denies any wrongdoing.
Malcolm Moore
The Daily Telegraph, 16 July 2009
Media and Communications
The Chinese government has ordered all Chinese search engines to block searches related to a corruption investigation in Namibia. The investigation involves a company formerly run by the son of President Hu Jintao.
Jamil Anderlini
Financial Times, 23 July 2009
Energy
Chen Tonghai, the former head of the state-owned China Petroleum & Chemical Group, has been convicted of taking $28.8m in bribes over eight years. The company, also known as Sinopec, is China's largest company.
Richard McGregor
Financial Times, 16 July 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.