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Corruption and Money Laundering - Regions
More Information on: State Sovereignty and Corruption
Europe and Russia | North America | Latin America | Africa | Asia and Australia | Middle East | Archived Articles Europe and Russia
New EU Members Score Badly in Corruption Ranking (November 6, 2006)
Romania and Bulgaria face criticism from Transparency International (TI) with the release of its annual Corruption Perceptions Index (CPI), which ranks Romania 84th and Bulgaria 57th out of 163 countries due to the rampant corruption in both states. Many EU countries occupy the top places in the CPI, and with both Romania and Bulgaria set to join the EU in 2007 such a report could jeopardize relations with the regional bloc argues this Der Spiegel article. The EU Commission has already created “safeguards” that allow for the termination of EU subsidies if evidence of corruption is found. TI states that these “safeguards” benefit Romania and Bulgaria by pressuring the countries to quickly implement reforms.2005
Two Nations Get Warning on EU Membership (October 25, 2005)
The European Union is threatening to postpone Romanian and Bulgarian accession to the organization if the two countries fail to tackle corruption and initiate judicial reform. If they do not progress, Romanian and Bulgarian entry into the EU will likely be delayed from 2007 to 2008. Given the failure of the EU Constitution and Europe’s slow-growing economy, the climate for expansion has become increasingly hostile. (International Herald Tribune)Three Held Over Beheading of Kiev Corruption Reporter (March 2, 2005)
Ukrainian President Viktor Yushchenko announced that authorities had arrested three men linked to the 2000 murder of journalist Georgiy Gongadze, a prominent campaigner against high-level government corruption. Secret recordings of former President Leonid Kuchma ordering senior members of his administration to "take care" of the journalist had also come to light. The investigation into the murder had stalled under Kuchma until documents were leaked to the Independent which showed obstruction of the case at the highest levels.2004
Russia May Pay for Bribes in Lives (November 8, 2004)
Both the explosion of the two passenger planes in August and the Beslan school siege in September 2004 reportedly involve bribery of authorities in Russia, and indicate a more widespread phenomenon. This article suggests that corruption of the police forces and violence in Russia are unquestionably linked and attest to “the general inefficiency of state power” to provide security for its citizens. (Los Angeles Times)Bribery Begins At Home (October 6, 2004)
Double standards abound as Britain seeks to spotlight Africa in its upcoming presidencies of the European Union and the G8. London plans to address corruption and governance in a broader debate on how to build a "strong and prosperous Africa." Ironically, Britain has yet to respond to bribery scandals involving its own companies in Africa. (Guardian)US Calls for Corruption Crackdown (September 22, 2004)
Speaking at a conference on investment, US Ambassador Alexander Vershbow encouraged Russia and other former Soviet republics to adopt serious measures to weed out corruption and increase transparency, in order to attract more foreign direct investment. (Moscow Times)Corruption Next in Georgian Cleanup (February 5, 2004)
Strong popular support has encouraged new Georgian President Mikhail Saakashvili to undertake a sweeping anti-corruption campaign, a challenging task when the country's "shadow economy" constitutes up to 80 percent of overall output. (Christian Science Monitor)Paris Sues President Chirac's Party for Embezzlement in 1990s (February 3, 2004)
Alain Juppe, former French Prime Minister and close friend of current President Jacques Chirac, has been found guilty of embezzling taxpayer money to bankroll Chirac’s party in the late 1980s and 1990s. The city of Paris has announced it intends to sue the UMP party for millions of euros in damages. (Independent)Berlusconi to Face Renewed Trial (January 14, 2004)
The Italian prime minister will likely face a renewed corruption trial after an Italian court struck down the hastily-passed 2003 law granting him immunity from corruption charges. Mr. Berlusconi stands accused of attempting to bribe a judge during a business takeover deal. (BBC News)Crusader against Corruption Elected President of Georgia (January 5, 2004)
In 2001 Mikheil Saakashvili left his post as justice minister under President Shevardnadze, after clashes over a high-profile anticorruption campaign, introduced by Saakashvili. As newly elected President in 2003, Saakashvili returns with the pledge to crackdown on corruption. (Los Angeles Times)2003
Italy Immunity Law in Top Court (December 9, 2003)
In 2003 the Italian parliament passed a law granting Prime Minister Silvio Berlusconi immunity as long as he remains in office. Italy’s constitutional court decides on the legality of the law. If Berlusconi loses immunity he might face a trial for corruption allegations. (BBC)Corruption Blackens Nordic Region's Lily-White Image (December 4, 2003)
The Scandinavian countries are among the least corrupt countries in the world. Yet, big corruption scandals in Sweden and Norway show that integration in a global economic system brings corruption to even the most transparent societies. (Agence France Presse)Elf Executives Jailed Over Fueling Corruption in Africa (November 18, 2003)
Three former Elf executives were jailed for five years over corrupt practices in Africa. One of the executives incriminated French President Jacques Chirac and the former President Francois Mitterrand and their political parties in the corruption cases. (Vanguard)Business-State Contract Lacks Credibility (August 6, 2003)
Under Russia’s new “social contract,” the state will not revisit privatization and business will pay taxes in full and finance social programs. However, the credibility of the Russian state remains low. Therefore, business still prefers to operate in the shadow economy. (Moscow Times)Many Believe Corruption Saved Russia (July 8, 2003)
During the painful economic transition in Russia, state-owned enterprises fell into the hands of former bureaucrats. While corruption ran rampant, the Director of Transparency International Russia notes the arrangement allowed the state to continue providing essential services. (Policy.lv)Corsicans Say No to More Home Rule (July 7, 2003)
Corsica voted “no” to gaining more autonomy from France in a referendum. Less than 10 percent of Corsicans actually support full independence from France, and many resent France’s attempt to use Corsica as a “laboratory” for its decentralization experiment. (Guardian)Dirt and Diamonds in Elf Trial (April 2, 2003)
Thirty-seven defendants from the company that once was France's biggest company face trial involving the embezzlement of some $US200 million. Elf's executives paid tens of millions of dollars of bribes to secure contracts in oil-rich countries. (Nzoom)Elf Was “Secret Arm of French Policy” (March 19, 2003)
Investigators in the Elf Aquitaine trial in France found out that Elf, until its privatization in 1994, worked much more as an “unofficial arm of France’s murkiest diplomacy” than as a normal oil company. By the 1980s, Elf had expanded into many African countries thanks to secret “commissions” paid with the blessing of the French government. (BBC)Poland Lifts Veil on Corruption (March 7, 2003)
A live television broadcast of parliamentary hearings on “influence peddling” in Poland has thrust the corruption among Poland’s political and social elite into public consciousness. Some say the public hearings could “mark a turning point in Poland's transition from communism to free-market democracy.” (Christian Science Monitor)Water and Power: The French Connection (February 4, 2003)
While promoting the participation of French companies in water privatization projects abroad, the French government pursues a protectionist approach at home. Suez and Vivendi Environnement became the world’s largest private water companies, and they control the water market in France. In exchange, the companies illegally financed President Chirac’s conservative party. (Center for Public Integrity)French Court Reverses Corruption Conviction (January 29, 2003)
A French court acquitted a former foreign minister of charges that he took bribes from his mistress, a lobbyist at the time for the oil company Elf Aquitaine. The decision sparked sharp criticism of the French justice system’s ability to convict the rich and powerful. (New York Times)2002
Multinationals' Bribery Goes Unpunished (November 12, 2002)
The OECD must address the lack of effectiveness of its 1997 convention against corruption by multinational companies. “The OECD convention is simply not being taken seriously enough by many companies,” complains Peter Eigen, from Transparency International. (International Herald Tribune)With Italy's New Laws, an Anti-Corruption Era Wanes (November 11, 2002)
In defiance of a ten-year anti-corruption campaign known as Clean Hands, Italian Prime Minister Silvio Berlusconi passed a controversial bill allowing a defendant to replace the judge if there is a "legitimate suspicion" that the judge is biased. Berlusconi and his friends have already taken advantage of the bill to evade justice. (Washington Post)Macedonia’s Public Secret: How Corruption Drags the Country Down (August 14, 2002)
Endemic corruption in Macedonia not only “retards economic progress but also feeds organized crime and, in turn, political and communal instability.” This International Crisis Group report calls upon Macedonia's government to undertake systematic and objective investigations.A Record of Corruption (May 4, 2002)
Europe has welcomed the re-election of French President Jacques Chirac as a victory over far-right wing politics. However, investigators warn that by winning a second term, Chirac retains immunity from extensive corruption charges for another five years. (Associated Press)Spain: Tax Havens Stymie Judge Garzón's Investigations (April 30, 2002)
The “common practices” of tax havens “to respond with evasive answers, postpone the matter or omit key data” have hampered investigations into money laundering by one of Spain’s largest banks, Banco Bilbao Vizcaya Argentaria. (Inter Press Service)Europe's Dirty Secret (April 24, 2002)
What links Tony Blair, Jacques Chirac and Helmut Kohl? Political leadership? Electoral success? The EU? Newsweek argues that in recent months the most prominent theme has been corruption scandals, a cancer “rotting the heart of Europe.” (Newsweek)Mayor To Lift Lid On Kosovo Corruption (April 19, 2002)
Large-scale immigration places intense pressure on the supply of electricity, water and housing in Pristina, Kosovo. A shortage of staff, combined with low salaries in the local administration has allowed a “culture of bribery and corruption” to flourish. (Institute for War and Peace Reporting)Spotlight on Central Asia (April 11, 2002)
For the former Soviet republics, the “allure” of “helping in the American-led war against terrorism…[has] brought elevated geopolitical significance.” However, this attention has also attracted international criticism of the corruption and repression in these countries. (New York Times)Macedonia: Government Reluctant To Tackle Fraud (April 4, 2002)
Corruption, for many years an “endemic” part of Macedonian society, has finally made it onto the electoral agenda. A recent poll found that 88.6 per cent see the Macedonian government “at the center of fraud,” provoking a response from politicians, fearful for their privileged positions.
(Institute for War and Peace Reporting)Kosovo: Lottery Arrests Highlight Growth In Fraud (April 4, 2002)
A number of arrests made in Kosovo for fraud, “highlight the West's failure to introduce laws against money laundering” in the region, the result of a “muddled approach to illegal or unlicensed business activity” by the UN Interim Administration Mission in Kosovo (UNMIK). (Institute for War and Peace Reporting)Corruption Fighters Cannot Be Left Under Direct Cabinet Control (March 13, 2002)
Government officials in Latvia face a difficult dilemma: balancing the independence of its anti-corruption bureau (KNAB) with the need to supervise the legality of itsoperations. Excessive judicial oversight would undermine the efforts of KNAB. (Diena, Latvia)Finance Peace in Macedonia, Not Corruption (March 11, 2002)
Aid pledges to Macedonia from the EU, US and the World Bank must be backed by support to overcome corruption. If efforts fail, donor money will be wasted and ethnic divisions may flare up again, threatening the fragile peace. (International Crisis Group)Serbia Launches High-Profile Anticorruption Campaign, But At What Cost? (March 11, 2002)
Serbia has received widespread praise for its innovative approach to solving the problem of corruption. However, the involvement of the State Security Service, which has a “history of involvement in illegal activities,” threatens to undermine the success of the scheme (Radio Free Europe/Radio Liberty)BP Stops Paying Political Parties (March 1, 2002)
British Petroleum has resolved to make no political contributions from corporate funds anywhere in the world, but denied that Enron influenced the decision. Says BP’s chief executive, “large multinationals must tread warily from now on.” (The Guardian)Poverty, Corruption Haunt Romania (February 17, 2002)
In Romania, strict libel laws mean insulting authority, including reporting corruption, can lead to a prison sentence. Combined with high levels of poverty, this sense of hopelessness means 4 in 10 young Romanians see emigration as the only option. (Associated Press)Is There Less Than Before? (February 14, 2002)
The “mani pulite” (clean hands) anti-corruption campaign in Italy has dragged on for ten years. The lack of convictions means Italians now have little interest in the trials, and more worryingly, little respect for the judicial system as a whole. (Economist)Serbia: Corruption Clampdown (February 6, 2002)
A new initiative in Serbia offers individuals the opportunity to report their experiences of corruption via a telephone hotline. Results after only a few weeks of operation indicate Serbians support the government’s plan for a corruption-free society. (Institute for War and Peace Reporting)Albania: Uniting Against Corruption (February 1, 2002)
To undermine the assumption that “politics is a way of getting rich,” Albanian politicians from both the government and the Opposition parties agree on a new anti-corruption drive. (Institute for War and Peace Reporting)Lengthy Elf Inquiry Nears Explosive Finish (February 1, 2002)
An extensive investigation into corruption at formerly state-owned Elf Aquitaine exposes the ”réseaux,” a network of corruption involving corporate leaders and senior politicians. (International Herald Tribune) ]Cleanup Time: The Kremlin is Launching a Major Attack on Corruption (January 31, 2002)
To revive the entrepreneurial sector in Russian society and encourage foreign investment, President Vladimir Putin launches a comprehensive initiative to reduce corruption. Without scrutinizing the Central Bank of Russia, his efforts will have little effect. (Business Week)Analysis: How Corrupt is Europe? (January 15, 2002)
Reports of corruption at the highest level are emerging across Europe. Politicians who use their influence to avoid prosecution simply emphasize how modern justice systems often work in the interest of the powerful. (BBC)The False-Money Weapon (January 15, 2002)
The confusion that followed the introduction of the Euro provided counterfeiters and money-launderers with a perfect opportunity to cash-in. (Christian Science Monitor)
North America
2006
Oil, Cash and Corruption (November 5, 2006)
The forthcoming corruption trial of US businessman James H. Giffen sheds light upon the massive bribes received by Kazakh President Nursultan A. Nazarbayev, who has “amassed a fortune at the expense of an impoverished citizenry.” Giffen has allegedly paid Nazarbayev US$78 billion “to buy access and influence in Kazakhstan for oil giants like Exxon Mobil, BP […] and […] Conoco-Phillips” This New York Times piece indicates that US government officials approved of Giffen’s bribery. Moreover, the author highlights the obvious US hypocrisy of claiming to promote good governance and democracy across the world, while graciously receiving the kleptocratic Kazakh leader in September 2006.2005
Riggs Bank Agrees to Guilty Plea and Fine (January 28, 2005)
The Washington Post reports that Riggs Bank, implicated in former Chilean dictator Augusto Pinochet's money laundering activities, pleaded guilty to charges of criminal liability. The bank agreed to a $16 million fine, bringing its total civil and criminal money laundering-related penalties to $41 million. In 2004 Riggs shut down its questionable international and embassy banking operations.2004
Job Provision Born of Riggs Scandal (December 9, 2004)
In response to a money laundering scandal involving former dictator Augusto Pinochet and Riggs bank, the US Congress passed an intelligence bill expected to reduce possible criminal financing and illicit activities. The most important reform requires federal bank examiners to “cool off” for a year before taking private sector jobs in financial institutions. (Washington Post)Pinochet Faces Tax Charges in Chile (October 2, 2004)
Just weeks after a Spanish court began investigating Augusto Pinochet on money laundering and asset concealment, the Chilean Internal Tax Service has filed a similar complaint concerning the General’s accounts at Riggs Bank. The Washington-based bank previously paid fines for failing to follow money-laundering regulations, and some of the employees could face justice for helping Pinochet conceal accounts of between $4 and $8 million. (Washington Post)Follow the Money (January 14, 2004)
A large-denomination US cash trail likely stretches from US banks to Tikrit, and to Saddam Hussein. But for now, the Federal Reserve Board ensures that the identities of Saddam’s US bankers remain unknown. (New York Times)Enron Finance Chief Pleads Guilty (January 15, 2004)
Former Enron finance chief, Andrew Fastow, pleaded guilty to fraud charges brought against him in his role as one of the US energy giant's most senior executives. Fastow’s guilty plea is part of a deal with the prosecution to receive a shorter jail sentence. (BBC)2003
A Nigerian Contract at the Heart of a Corruption Affair (December 20, 2003)
A French judicial investigation considering “the bribery of a foreign public official” focuses on the French company Technip and the American company Halliburton. The judge conducting the investigation considers the indictment of the present United States Vice President, Richard Cheney, in his capacity as former CEO of Halliburton. (Le Figaro)Tax Inquiries Fall as Cheating Increases (April 14, 2003)
Investigations and prosecutions of tax fraud have declined substantially over the last decade in the US, even as corporations have found bolder and more sophisticated tax evasion schemes. What’s more, the Internal Revenue Service increasingly targets relatively minor cases, while the wealthiest tax-evaders go unpunished. (New York Times)Bribe Inquiry Launched in Mobil's Foreign Deals (April 5, 2003)
Oil consultant James Giffen has pleaded not guilty to charges that he violated the Foreign Corrupt Practices Act by paying $78 million in bribes to Kazakh officials on behalf of Mobil Oil. The case may force US oil companies “to take stock of all their business practices and how they use agents,” says an energy expert at Rice University in Houston. (Bloomberg News)Insurance Loophole Helps Rich (April 1, 2003)
Some US companies and wealthy individuals are taking advantage of a tax loophole to save millions of dollars in taxes without officially breaking the law. Congress designed the loophole fifty years ago to help small farmers get insurance, but most beneficiaries now are neither small nor farmers. (New York Times)Corporate America, Come Home! (February 28, 2003)
US pension funds and unions are leading an aggressive campaign to stop US corporations from registering on off-shore tax havens to avoid paying taxes. Off-shore companies not only exacerbate the country’s burgeoning deficit, but they are also more difficult to monitor at a time when investors are demanding further transparency. (Guardian)Foreigners Exact Trade-Offs From US Contractors (February 16, 2003)
The US weapons industry thrives on a modern form of bribery called “offsets” by which arms manufacturers guarantee aid and trade to client countries in exchange for arms sales. Arms corporations say offsets, little known to investors or the general public, are a necessary component in the global arms trade, helping countries justify the billions spent on military goods. (New York Times)Tax Moves by Enron Said to Mystify the I.R.S. (February 13, 2003)
Senators say accounting experts’ report to the Senate Finance Committee provides a “shocking” and “eye-popping” indictment of Enron’s multifarious tactics to avoid paying taxes. Large companies like Enron use costly tax avoidance transactions so complex that even the Internal Revenue Service doesn’t understand them. (New York Times)Wealthy Suing Accountants Over Rejected Tax Shelters (February 7, 2003)
Several wealthy US individuals are suing two of the “Big Four” accounting firms for selling “tax shelters,” at several million dollars each, that the Internal Revenue Service recently ruled unacceptable. The top two executives at Sprint could owe the government more than $100 million in taxes if the INS bans one such tax shelter. (New York Times)Mexico's Corrupt Oil Lifeline (January 21, 2003)
Mexico’s dependence on corruption-ridden oil company Premex may pose a threat to its economy, as oil increasingly becomes the linchpin of the global economic and political order. (New York Times)2002
One For The Ages: Congress Rewards Corporate Tax Evaders With Our Money (December 3, 2002)
“As the war on terror shows troubling signs of becoming a war of error, the Bush administration is waging a far more successful war on behalf of its corporate backers.” Added as a last minute piece of pork onto the Homeland Security Bill, corporations that evade US taxes through offshore tax havens will now be eligible for federal contracts. (ariannaonline)Key Company Assets Moving Offshore (November 22, 2002)
US companies are increasingly placing their patents, logos, and other intellectual property in offshore tax havens. The Bush Administration not only turns a blind eye to the practice, but is also looking for more ways to cut corporate taxes. (New York Times)No Kidding: Anti-Bribery Law Takes a Hit (April 26, 2002)
In “a big victory for Corporate America,” a Houston federal judge ruled the Foreign Corrupt Practices Act allows “an executive from a US company to bribe a foreign official to reduce the company's tax burden…in that country,” without breaking the law. (Common Dreams)New Rules for Money Laundering (April 23, 2002)
Intelligence reports show that terrorists used credit-card companies and wire-transfer firms to move money around in the pre-September 11 period. A variety of financial organizations will now have to comply with anti-money laundering regulations that banks have lived with for years. (Wall Street Journal)69% Say Government Corrupt (April 22, 2002)
After revelations of corruption scandals at all levels of government and across all political parties, a recent survey concludes that “Canadians appear as resigned to corruption as they are to the weather.”
(National Post, Canada)Cheney & Co. Owe Thanks to Those Who Pressured Them to Unload Stock (March 12, 2002)
Newsweek's Wall Street editor delivers a scathing commentary on Cheney’s big business connections. (Washington Post)Duopoly Money (March 7, 2002)
The Enron scandal highlights how “America’s two-party duopoly has fostered a culture of impunity in business and politics.” Preventing alternative voices from emerging protects politicians from any form of competition, and hence accountability. (TomPaine.com)Campaign Finance Bill Passes (February 15, 2002)
Political corruption allegations surrounding the Enron scandal focus on donations made by the company to the Republican Party. Critics hope a new US campaign finance bill banning “soft money” donations will address the issue. (New York Times)
Latin America
2007
A Murky Transparency Law (February 22, 2007)
This Inter Press Service article reports on the shortcomings of a Honduran law on “transparency and access to public information.” The law – purportedly designed to ensure transparency – actually gives government officials the right to permanently restrict documents and shield themselves from allegations of corruption. The author argues that these provisions in the law violate several international conventions Honduras is party to such as the Inter-American Convention Against Corruption.2006
Pinochet to Face Tax Fraud Charges (August 19, 2006)
Following a ruling by Chile’s Supreme Court, former dictator Augusto Pinochet will face charges of corruption and embezzlement. Pinochet once held secret accounts in a number of US-based banks, and allegedly stole millions of dollars’ worth of government funds. Pinochet already faces indictments for human rights abuses during his 1973-1990 dictatorship. (al-Jazeera)2005
An Evil Eye Opens Up Again (February 19, 2005)
This Inter Press Service article revisits Operation Mallochio ('evil eye'), "one of the biggest" anti-money laundering operations ever conducted in Italy, in light of recent developments in Brazil linked with casino gaming. The original investigation focused on a criminal network involved in drug trafficking and money laundering activities in several Latin American countries.2004
The Pinochet Money Trial (December 12, 2004)
As head of state, Chilean General Augusto Pinochet never received a salary higher than about $40,000 a year—yet the former dictator and his family have millions of dollars in US and offshore bank accounts. This New York Times investigative piece follows money laundering at Washington-based Riggs Bank, “commission for services” from foreign countries (including the US) and the lucrative privatization of Chilean state-owned companies. Even loyal supporters now question Pinochet’s honesty as these damaging facts emerge.The High Cost of Corruption (October 27, 2004)
An exceedingly high level of corruption hinders development in Central America and leads to low economic productivity, according to Transparency International. This article claims that human rights groups in the region largely overlook the impact of the high level of corruption on citizens’ rights, as it is the “country's citizens who ultimately pay” for acts committed by officials and authorities. (Inter Press Service)Pinochet Faces Tax Charges in Chile (October 2, 2004)
Just weeks after a Spanish court began investigating Augusto Pinochet on money laundering and asset concealment, the Chilean Internal Tax Service has filed a similar complaint concerning the General’s accounts at Riggs Bank. The Washington-based bank previously paid fines for failing to follow money-laundering regulations, and some of the employees could face justice for helping Pinochet conceal accounts of between $4 and $8 million. (Washington Post)A Time Bomb Ready to Explode (September 22, 2004)
A Joint Parliamentary Inquiry Commission (CPMI) investigation in Brazil has revealed the probability of a major corruption scandal. The charges involve alleged drugs and arms trafficking, corruption and tax evasion by the country’s leading politicians and businessmen. Now, the commission itself faces accusations of corruption and blackmail. (Inter Press Service)Spanish Judge Charges Pinochet with Money Laundering (September 16, 2004)
A Spanish court charged General Augusto Pinochet, his wife, and employees of Riggs Bank in Washington with money laundering and concealment of assets, according to this Reuters article.Bolivian Peasants Turn to Lynch Law (September 19, 2004)
The Aymara peoples of Bolivia, frustrated with their corrupt representative democracy, take to communal justice in form of brutal lynchings of members of government. The number of these types of lynchings in Bolivia is up to 27 from 5 in 2001. (Observer)Warrant Out For Ex-Argentine Head (April 20, 2004)
A judge has issued an international arrest warrant for Argentina's former president Carlos Menem after he failed to appear in court for a corruption investigation. Menem faces an investigation into his involvement in the embezzlement of up to US $60 million and arms trafficking to Ecuador and Croatia during his 10 years as president from 1989 to 1998. (BBC)2003
Nicaragua's Former Leader Jailed (December 8, 2003)
A Nicaraguan court found former Nicaraguan President Arnoldo Aleman guilty on corruption charges. Among other wrongdoings he helped to divert $100m of state funds into his party's election campaign. (BBC)Country Looks to a New Leader (May 25, 2003)
The newly elected president of Argentina, Néstor Kirchner, takes on the task of leading the country out of the political and economic crisis. Critics question this new Peronist governor’s commitment to fighting corruption.(The New York Times)Arrest of IMF Employee Points to Cover-up (April 1, 2003)
The IMF's legal and financial support for Jorge Baca Campodonico raises question about the Fund’s credibility in promoting a 'good governance' agenda and fighting corruption in Latin America. Baca was a former Finance Minister of Peru who is now facing criminal charges of high-level corruption. (Bretton Woods Project)Corruption Accentuates Economic and Social Crises (January 22, 2003)
Transparency International’s Global Corruption Report 2003 singles out Latin America as the most corruption-ridden region of the world. Corruption has eroded public confidence in institutions and exacerbated economic and social crises, the report says. (Inter Press Service)Who’s Corrupt? (January 8, 2003)
Under Fujimori’s rule, official systemic corruption squandered an estimated $2 billion, leading Peruvians to call corruption one of the country’s major problems. Yet a study of small-scale graft in Peru shows that most Peruvians see small bribes and pay-offs as an acceptable part of everyday life. (Latinamerica Press)2002
Waiting for the Fat Man to Sing (August 22, 2002)
Nicaragua's new president Enrique Bolaños seems determined to prosecute his predecessor Arnoldo Aleman on corruption charges. But will Mr. Aleman’s immunity obstruct his prosecution? (Economist)Central America Cleans House (May 8, 2002)
For the people of Guatemala and other Central American countries, “the problem is no longer eliminating dictators or making peace.” After years of armed conflict, citizens have turned their focus to the scourge of corruption threatening the emerging democratic system. (Christian Science Monitor)Fighting Corruption (March 25, 2002)
A “peer review system,” similar to one that already exists for human rights abuses in Latin America, may improve transparency in a region “rampant” with corruption. (Latin Business Chronicle)It's Open Season on Argentine Leaders (February 28, 2002)
Reflecting a growing trend across Latin America, physical attacks on politicians by disgruntled Argentineans highlight the intensity of anger at a system that has become “bloated, corrupt and unresponsive.”
(Washington Post)Analysis - Mexico Takes Tougher Line on Corruption (January 21, 2002)
The Mexican President, Vicente Fox, promised to tackle corruption during his election campaign over a year ago. Having ignored this pledge in order to appease the defeated Institutional Revolutionary Party (PRI), he finds his popularity is in decline and once again announces his plan to tackle corruption. (Reuters)
Africa
2007
Corruption in a Developing Country Context (July 25, 2007)
Corruption is defined as “the misuse of public office or public assets for private gains”. This Globalist article argues that it affects every part of society damaging significantly developing countries by diverting resources that could benefit the poor. There are numerous countries in Africa still fighting against corruption and the ensuing culture of impunity. Nigeria is one of them. Corruption is, above all, an indication of weak governance and weak institutions.Nigerian Vice President Faces Corruption Charges (February 28, 2007)
This Guardian piece highlights the corruption allegations surrounding Nigerian Vice President Atiku Abubakar. The Nigerian Senate’s report accuses Abubakar of stealing nearly US$100 million from public funds and recommends that he be prosecuted, which would first require him to be impeached. The report and its recommendations demonstrate a willingness to fight corruption in a country that consistently ranks among the most corrupt in the world.2006
To Fight Corruption, One African Offers Presidents Cash (November 24, 2006)
The annual Corruption Perceptions Index published by Transparency International has repeatedly ranked African countries as some of the most corrupt in the world. However, this New York Times article argues that a catalyst for change now exists in Africa with the announcement by Sudanese billionaire Mo Ibrahim that he will award an annual prize of US$5 million to African leaders - upon retirement from office - who eschew corruption and instead promote democratic processes and good governance.The Nairobi Declaration (April 7, 2006)
Citing the crippling effects of corruption on governance and development, representatives to Transparency International from Ghana, Kenya, Niger, Senegal, Uganda, Zambia and Zimbabwe have signed the “Nairobi Declaration on International Obligations and on the Recovery and Repatriation of Africa’s Stolen Wealth.” According to the Declaration, African governments must strive to stamp out corruption, the international community must reign in offshore havens that protect stolen wealth, and individuals and corporations from G-8 and OECD countries must no longer enjoy impunity from corrupt practices in Africa.Kenya: More Ministers Resign over Graft Allegations (February 14, 2006)
Kenya’s government has been plagued by a widening pattern of fraud, forcing several prominent cabinet ministers to resign. As a result of corruption, which President Mwai Kibaki has vowed to eliminate, Kenya has lost an estimated 10 percent of its annual gross domestic product and several international donors have decided to withhold aid. As National Commission on Human Rights Chairman Maina Kiai points out, the billions of shillings stolen by the government would “make a dramatic difference” in alleviating poverty and addressing Kenya’s food shortages and related humanitarian concerns. (Integrated Regional Information Networks)2005
State Changes Tune on Looted Billions Abroad (May 19, 2005)
The Kenyan government provides few details on its continuing effort to recover Sh80 billion (more than US$1 billion) of taxpayers' money stolen and stashed in foreign bank accounts during the Kanu regime. Talking to the press, the Kenyan Justice and Constitutional Affairs minister would not provide any details about the progress of the investigation or the amounts recovered. The minister also deflected questions about the government's commitment to fighting corruption, insisting that such accusations were "based on perceptions and misunderstanding rather than facts and reality." (East African Standard)Why Githongo Resigned (February 8, 2005)
Kenya's graft fighting expert John Githongo resigned from his post as permanent secretary for governance and ethics, dealing a "severe blow to the heart of the administration's efforts to curb corruption." US ambassador to Kenya William Bellamy called the departure a "severe setback," noting his concern that Githongo's resignation comes in the wake of extensive new information on corruption within the Kenyan government. (Nation, Nairobi)2004
South African Deputy President Linked to Corruption Trial (October 14, 2004)
A landmark case is underway as the South African Deputy President's financial advisor faces charges for bribery, fraud and corruption. If the Deputy President is prosecuted as a result of the trial, it could lead to immense consequences for the country’s judicial system. (Voice of America)Zambia's Chiluba Denies Corruption Charges (October 11, 2004)
Zambia's ex-President Frederick Chiluba faces yet another trial for allegedly taking state funds during his term in office, 1991 to 2001. So far, courts have not been able to charge him due to “lack of credible evidence." Most of the alleged transactions were carried out by Chiluba’s ex-intelligence chief who has fled the country. (South Africa Independent Online)US Oil Firms Entwined in Equatorial Guinea Deals (September 9, 2004)
Corruption runs amok in Equatorial Guinea, as the government distributes millions of dollars in oil income among the privileged for personal use. Meanwhile, most of the country’s citizens live on about one dollar a day. (Washington Post)Kenya Bribes are Growing Bigger (May 17, 2004)
Under President Kibaki's predecessor, Daniel Arap Moi, corruption was endemic and had become a way of life for many Kenyans. Corruption watchdog Transparency International argues that government initiatives, such as the Public Offices Ethics Act and the Anti Corruption and Economic Crimes Act, have helped reduce the number of officials demanding bribes in 2003. (BBC)Corruption Hotline 'Sizzling'(January 6, 2004)
South African Premier Popo Molefe established a corruption hotline in an effort to diminish corruption in the country. Molefe wants South Africans to play a central role in building a culture of integrity and clean governance. (South African Press Association)2003
Zambia's 'Matrix of Plunder' (December 9, 2003)
Former Zambian President Frederick Chiluba is on trial for diverting state funds into privately-held accounts. This BBC article points out that if properly invested into economic projects, the funds could have made a significant difference to Zambia, one of the poorest countries in the world.IMF Unfreezes Key Funds for Kenya (November 22, 2003)
Kenyan President Mwai Kibaki successfully pushed through anti–corruption laws and strengthened the judiciary.The IMF resumes aid to Kenya in response to President Kibaki’s efforts. (BBC)Corruption, Democracy and the 2003 Election (June 4, 2003)
If in the true democratic setting minority and majority rights are equally protected then democratic governance in Nigeria seems to be exactly the opposite. “Democracy or politics is a form of enterprise in which people invest financial resources for greater dividends.” (Vanguard)Short Warns of Oil Boycott over African Corruption (February 11, 2003)
British Secretary Clare Short exhorts transnational oil companies to make payments to African governments transparent, arguing that companies have a responsibility to fight corruption in the countries in which they do business. However, the US opposes an international initiative that would reign in its powerful oil industry. (Guardian)Up to 50 % Tax Revenue Lost Due to Corruption (January 28, 2003)
The African Development Bank Group organized a conference to help African countries develop action plans to prevent and combat corruption. An ADB study found that African governments lose up to fifty percent of tax revenue, driving up the cost of public services and limiting access for poor people. (Daily Monitor (Addis Ababa))2002
Corruption Is Costing Kenya Dearly (December 20, 2002)
Rampant official corruption in Kenya drains money from public works and exacerbates poverty and inequality in a country where half the population lives under the international poverty line. This article suggests several minor, cost-free changes that Kenya could make to end corruption’s drain on social services and the economy. (Daily Nation)Angolan Oil Millions Paid into Jersey Accounts (November 4, 2002)
Although Angola's oil reserves are said to be bigger than those of Kuwait, most Angolans live in extreme poverty. The British bank Lloyds TSB in Jersey receives hundreds of millions of pounds in its secret offshore accounts paid by oil companies to the government of Angola. (Guardian)Angolan Government Accused of 'State Robbery' (August 24, 2002)
The official end of the war and the critical humanitarian situation in Angola have renewed the focus on the disappearing billions of dollars from oil revenues, into the pockets of the "Futungo" -- a secret, powerful elite connected to President dos Santos. (Independent)Corporate Secrecy Oils the Wheels of Poverty (June 20, 2002)
The links between poverty and the exploitation of natural resources have become widespread knowledge. Multinational oil companies working in developing countries refuse to publish what they pay, thus adding to a vicious cycle of corruption which harms the civilian population. (International Herald Tribune)The Deal on Abacha's Loot (May 23, 2002)
The Nigerian government struck a practical deal with the Abacha family that did not serve the cause of justice. It constituted a dangerous precedent that might have signaled to past or potential perpetrators that they could steal and, then, negotiate with the government. (Nigerian Guardian Newspaper)A Promising Start (May 2, 2002)
Mali was once held up as the exemplary democratic model for developing countries to follow. Recent elections marred by claims of fraud and vote-rigging indicate the country has returned to its “old, corrupt ways”
(Associated Press)World Bank Official Admits Graft in Kenya Deal (March 19, 2002)
The Kenyan Urban Transport Infrastructure Project comes under intense scrutiny after a senior World Bank official admits “entertaining a request for a kickback” by a member of the Kenyan government.
(Daily Nation, Nairobi)Zimbabwe Leaders Face Financial Probe (January 23, 2002)
Zimbabwe’s Zanu-PF Party is under investigation for illegal use of treasury funds over a 20-year period. Human rights activists are calling for the implementation of “smart sanctions” which target corrupt officials, minimizing the effect on the rest of the population. (BBC)Kenya's List of Corruption Unveiled (January 19, 2002)
A new report by Transparency Kenya finds that the average Kenyan is forced to offer bribes for everyday services. Petty bribery is commonplace throughout the government structure, from the Kenyan Police to the Immigration Department. (Saturday Nation)New Move to Tackle Kenya Sleaze (January 15, 2002)
Hiring international experts is seen as the only way of ridding Kenya of corruption. The president’s previous attempts failed to win the support of parliament, as many of its members could well come under investigation. (BBC)
Asia and Australia
2008
A Torturous Road to Nation-Building (March 20, 2008)
Fifteen years after the UN Transitional Authority conducted free elections in Cambodia, the country still remains fragile. The executive, legislative and judicial branches of government are all engaged in corruption, creating lawlessness and endangering the justice system. Corrupt legal officials also reduce the credibility of the UN supported tribunal trying Khmer Rouge leaders. While many cities attract investment thanks to tourism, the government’s lack of social policies strongly hurts citizens in rural areas. There are no health services and many live on the “edge of hunger.” (International Herald Tribune)2007
Graft Threatens Afghan Government Legitimacy-Group (March 19, 2007)
This AlertNet piece highlights the issues of graft that continue to plague the Afghanistan government. A survey conducted by Integrity Watch Afghanistan (IWA) estimates that every Afghan household paid an average bribe of US$100 in 2006. IWA argues that such rampant corruption can undermine the Afghan government’s legitimacy because it shows that the state “doesn’t control its territory totally.”2006
Oil, Cash and Corruption (November 5, 2006)
The forthcoming corruption trial of US businessman James H. Giffen sheds light upon the massive bribes received by Kazakh President Nursultan A. Nazarbayev, who has “amassed a fortune at the expense of an impoverished citizenry.” Giffen has allegedly paid Nazarbayev US$78 billion “to buy access and influence in Kazakhstan for oil giants like Exxon Mobil, BP […] and […] Conoco-Phillips” This New York Times piece indicates that US government officials approved of Giffen’s bribery. Moreover, the author highlights the obvious US hypocrisy of claiming to promote good governance and democracy across the world, while graciously receiving the kleptocratic Kazakh leader in September 2006.China Cracks Down on Corruption (October 24, 2006)
The Chinese government increasingly attempts to rein in corruption by cracking down on officials and businessmen who engage in such acts. In the first eight months of 2006, 17,505 government officials were convicted of fraudulent activities. However, as this BBC piece reveals, many difficulties exist with government attempts to eliminate corruption in a system where no independent media or judiciary exists and free elections are practically unheard of.Chinese Commission Investigates Corruption (February 15, 2006)
Following an investigation by the Central Discipline Inspection Commission, the Chinese Communist Party expelled 24,000 members and disciplined a total of 115,000 on corruption related charges. According to the Commission’s investigation, corruption posed a particular threat to China’s mining industry, in which thousands of miners have died working in unsafe conditions left unregulated by party officials “paid to look the other way.” Party officials have maintained a “top-down” approach to tackling corruption, preventing the judiciary system from prosecuting cases independently and the press from reporting corruption related issues without being censored. (Washington Post)2005
China's Frantic Crackdown on Corruption (May 30, 2005)
Despite the Chinese government's increasing attempts to fight graft, a recent World Bank Institute report concludes that "China's control of corruption has eroded since 1996." China ranks 71 of 145 on watchdog Transparency International's corruption index, but the size of the country and its economy compounds the effects of graft: "More than 846,000 Communist Party members were punished for corruption from 1998 to 2002 alone." (Globe & Mail)Mongolian Woman MP Takes Aim at Corruption (April 25, 2005)
Sanjaasuren Oyun, one of the five women in Mongolia's 76-seat parliament has taken it upon herself to combat corruption in her country. Though the Mongolian Parliament passed an Anti-Corruption Law in 1996, critics say "it remains little more than a manifesto without enforcement mechanisms." Oyen also stressed the importance of involving women in politics, citing a World Bank study that shows "the greater the involvement of women in politics, the less corruption there is." (Radio Free Asia)Graft Goes Hand in Hand With Big Government (March 22, 2005)
Corruption accounts for the loss of as much as one-third of all public investment in some Asian countries. The UN estimates that India would boost its economic growth by 1.5 percentage points a year if it eliminated corruption. Yet public tolerance of low levels of corruption, and belief that it "acts as a lubricant to facilitate the management of political affairs," hamper efforts to eradicate it. (Bangkok Post)Wave of Corruption Tarnishes China's Extraordinary Growth (March 22, 2005)
Corruption in China's companies runs rampant. "A lot of state-owned companies have been simply stripped clean," according to a professor of finance at the Chinese University of Hong Kong. Beneath China's booming economy lies a financial mess -- "nearly half the nation's 130 brokerage houses are insolvent," according to this New York Times piece, and high-level embezzlement occurs regularly. In the first two months of 2005 alone, three separate cases involving over US$1 billion came to light.Communist Party Leaders Struggle to Contain Rising Corruption in China (March 1, 2005)
President Hu Jintao of China himself has said that "corruption is the strongest factor threatening the [Communist Party's] ability to stay in power. In 2004 alone, China disciplined more than 150,000 corrupt party members and uncovered over $300 million in misused public funds. Yet few believe that anything short of a radical transformation of the political system will remedy the problem, and such a transformation is unlikely to come. (Voice of America)2004
Politicians Playing the Oil Card as Kazak Elections Loom (September 16, 2004)
Kazakstan, home of the substantial Tengiz oil field and the “Kazakhgate” oil scandal involves important US economic interests. In light of the mid-September election results, this ex-Soviet country is unlikely to shake corruption allegations anytime soon. (Wall Street Journal)2003
China's Leaders Ignore Graft at Their Peril (July 6, 2003)
The Chinese government fights corruption that has rapidly spread with economic liberalization. The Communist party needs to protect its legitimacy because public discontent with corruption could lead to a violent collapse of the system. (New York Times)Global Q&A: China in Transition (2003)
The Chinese leadership faces a “double-edged sword:” participation in the capitalist market requires a greater degree of transparency and accountability in the government, but continuing liberalization undermines the party’s control. (Great Decisions)2002
Mauritius Tax Loophole Under Indian Scrutiny (December 5, 2002)
The Indian Supreme Court will decide whether or not to close a tax loophole that allows investors to route foreign direct investment through Mauritius, dodging India’s significantly higher taxes. In the past, India has chosen to ignore the practice, fearing that closing the loophole would result in a massive withdrawal of foreign investment. (Asia Times)Chinese Congress Focuses on Corruption and Unemployment (November 11, 2002)
“Any corrupt member, either in high or low position, is set to meet with severe punishment once his misconduct is exposed,” states the Chinese Communist Party Congress, in an unusually candid acknowledgment of possible high-level corruption in the Party. (Associated Press)China Prosecutes a Banker as Loan Scandals Continue (August 16, 2002)
China will bring corruption charges against a former top banker, Zhu Xiaohua, sending a strong message to increasingly independent business executives that the government won’t tolerate corruption. (New York Times)A Culture of Corruption? Democracy and Power in India (2002)
Government corruption in India will not go away because it has become part of Indian democracy. Politicians win, exercise, and retain their power through corrupted but socially accepted practices. Media provoked scandals quickly go into the past, and criminal investigations rarely follow. (Fathom)Exchange, Bribery and Gift-giving (October 17, 2002)
Anthropologist Charles Stafford claims that in China the boundary between bribery and gift-giving remains often unclear. What one considers corruption in the West, Chinese may perceive as a moral act. In the economic sphere, family ties could take dimensions that challenge the Euro-American business rational. (Fathom)The Triads and Emerging Legality in China (April 18, 2002)
Social change in China has created a “general confusion between what is legal and what is illegal.” Organized crime gangs take advantage of this moral vacuum by developing “political muscle” to protect their illegal business activities. (Asia Times)Thousands Protest Corruption in Mongolian Capital (April 15, 2002)
The Mongolian government dismissed media reports concerning high-level corruption, prompting thousands to take to the streets in protest. Demonstrators argue that if the government cannot hold individual members accountable, the whole administration should resign. (Reuters)Rampant Corruption Threatened by Corruption (April 4, 2002)
Attempts by public officials in India to profit from corruption increasingly backfire on them. The beneficiaries of a recent $100,000 bribe, given in return for a government job, soon discovered the money was paid in counterfeit notes. (Asia Times)Accountability On Trial (March 28, 2002)
The Indonesian media has criticized high-profile corruption trials in the country for being “device[s] to fend off foreign criticism and deflect calls for an international tribunal.” Many fear President Megawati’s lack of support for the trials will revive the policies of the former dictator, General Suharto. (Economist)Prosecutors Deal a Full Deck of Warnings (March 25, 2002)
Local officials in China receive a stark warning against corruption every time they play cards, a favorite past time according to traditional folklore. A new endeavor involves the distribution of playing cards, with anti-corruption messages printed on the back. (New York Times)Indonesia Takes Bite Out of Corruption (March 25, 2002)
Prime Minister Megawati’s anti-corruption pledges come under intense pressure during the high-profile trial of Tommy Suharto. The son of the former Indonesian dictator faces murder charges over the death of a Supreme Court judge who had previously convicted him of corruption. (Christian Science Monitor)Indonesian Corrupters May Face International Tribunal (March 23, 2002)
Opus Supremus, a Dutch NGO, requested a judicial opinion from the International Court of Justice (ICJ) concerning the possibility of trying a number of high-profile Indonesians on corruption charges in the World Court. (Jakarta Post)$200 Million Graft Earns Banker Life Term (March 22, 2002)
A fugitive Indonesian banker has received a “rare” life sentence for his involvement in corruption worth $200 million. Indonesia Corruption Watch argues that the lack of government backing for extradition of the accused brands the sentence “a joke.” (Reuters)Delegates Demand Laws to Punish Corrupt, Wasteful Projects (March 21, 2002)
Despite a global recession, China has achieved sustained financial growth in the past year, leading to the “tendency of waste and extravagance.” Spurred on by the monetary benefits of corruption, local authorities embark on hugely wasteful projects. (Xinhua News Agency, Beijing)The Menace of Money-Laundering (March 18, 2002)
Despite IMF-inspired reforms of its banking sector, Pakistan finds itself unable to combat money laundering within its borders. Estimates indicate that the volume of money linked to drug trafficking and criminal enterprise far out shadows Pakistan’s “regular” economy. (Dawn)One Corrupt City Reflects Scourge Plaguing China (March 6, 2002)
Despite repeated promises by the Chinese Communist Party to deal with corruption, reports show that little has been achieved. As China moves from a planned economy to a market economy, systemic corruption demands more than simply positive rhetoric. (Washington Post)China's Zhu Vows to Tackle Poverty, Eradicate Graft (March 5, 2002)
In a speech to the Chinese Parliament, Premier Zhu Rongji cited official corruption as among the major threats to the Communist Party’s hold on Chinese political power. As China prepares to enter the WTO, the Communist Party must prove to the farmers that it has not abandoned them for the business elite. (Reuters)Money Laundering Legislation to Be Introduced (February 15, 2002)
The Jakarta Post welcomes a new, wide-ranging bill designed to undermine money laundering linked to crimes including smuggling, gambling and the slave trade. However, concerns arise that the commission established to oversee the new legislation lacks integrity and power.Systemic Corruption: Something Rotten in the State of China (February 15, 2002)
In 1995, China declared that investigations into top-level corruption were “state secrets.” As a study by Beijing's Qinghua University shows, this kind of closed political culture means that only 10-20% of corruption cases are solved, and few party officials found guilty actually face criminal punishment. (Economist)Megawati Pledges All-Out Fight Against Corruption (January 14, 2002)
President Megawati Soekarnoputri of Indonesia calls for unity in her fight against widespread corruption, warning that it has become endemic in the country’s culture and a major cause of its political and economic collapse.
(The Jakarta Post)
Middle East
2006
Slow Reconstruction Blamed On Corruption (September 6, 2006)
The Commission on Public Integrity (CPI), an independent organization set up by the Iraqi government, has investigated over 3,500 corruption cases, yet fewer than 50 have been tried in court. Head of the CPI Judge Radhi al-Radhi says corruption penetrates every government department and hampers the already weak reconstruction effort. Of the US$45 billion designated for reconstruction, including money from the Iraqi Security Forces Fund, the Development Fund for Iraq and the US government, at least 25 percent remains unaccounted for. (Integrated Regional Information Networks)In Corruption, New Government of Iraq Faces a Tough Old Foe (May 23, 2006)
Many experts believe that corruption in Iraq has increased dramatically since the US invaded. According to the head of the Commission on Public Integrity, Iraq's anti-corruption agency, corruption exists “in every ministry [and] in every governorate." National bank employees steal money and replace it with counterfeit dinars and a pervasive and growing black market exists in unregistered and smuggled cars. US and Iraqi officials warn that corruption poses a serious challenge to Iraq's government under Nouri Maliki. (Los Angeles Times)2004
Saddam's Regime Helped Friends Beat UN Oil Embargo: Former Officials (January 29, 2004)
Saddam Hussein used crude oil “coupons” to reward supporters and circumvent sanctions under the UN-imposed “oil-for-food” program. The Iraqi oil ministry undersecretary believes Saddam supplied around 200 of his leading supporters from 40 countries with millions of barrels of crude oil. (Agence France Presse)Sharon Begins to Feel the Heat over Greek Island Bribery Claims as Prosecutors Consider Charges (January 22, 2004)
Israeli Prime Minister Ariel Sharon faces possible corruption charges for accepting bribes in the so-called 'Greek Island Affair.' Sharon already faces corruption allegations regarding illegal political contributions. (Independent)
2003
Arafat 'Diverted $300m of Public Money to Swiss Bank Account' (November 9, 2003)
According to the International Monetary Fund (IMF), at least $200 million has gone missing from a previously-held Palestinian Authority (PA) bank account. Furthermore, the IMF and PA officials allege that cash passes to militant Islamic groups. Documentaries in the US and UK call on PA leader Yasser Arafat for answers. (Telegraph)Sharon is Questioned by Israeli Police in Two Political Corruption Cases (October 31, 2003)
Israel’s Prime Minister Ariel Sharon and his two sons are under police investigation for cases of political corruption. The investigation comes at a time when opposition to Sharon’s foreign policy increases, on both national and international levels. (New York Times)Financial Scandal Claims Hang Over Leader In Waiting (April 14, 2003)
Ahmad Chalabi, the Pentagon’s favorite to take over the rule of Iraq, was sentenced to 22 years of prison in Jordan for 31 charges of fraud, embezzlement, and other charges. Chalabi’s Jordan-based Petra Bank reportedly funneled millions of dollars into Chalabi-family accounts in London, Lebanon, and Switzerland, leaving poverty-stricken Jordan to reimburse $200 million to depositors. (Guardian)2002
Al Qaeda's Gold: Following Trail to Dubai (February 18, 2002)
The hawala system, in operation across the Middle East and Asia, allows financial transactions to take place with no written records. Recognized as a “global currency” and exempt from international reporting requirements, the use of gold further eases the way for money laundering to take place. (Washington Post)
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