Money Laundering and Corruption - Regions
Europe and Russia
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 Groupreport 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)
(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)
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)
2001
Montenegro Announces a Crackdown on Corruption, But How to Carry it Out When Everyone is Implicated? (August 24, 2001)
In Montenegro, where the actual unemployment rate is probably much higher than the official rate of 37 percent, illegal trade is the rule, not the exception. But the most immediate problem is that many government officials, who should be in charge of reducing corruption, are part of the problem. (Institute for War and Peace Reporting)
Euro Notes: Bonanza for the Underworld? (August 15, 2001)
John Schmid expects that the introduction of Euro coins and bills in the 12 euro-zone countries on January 1, 2002 will be a great opportunity for organized crime, especially for counterfeiting and money laundering. But compared to illegal transactions in bank deposit money this will still be small fish. (International Herald Tribune)
Liechtenstein Takes Germany to World Court (May 31, 2001)
Liechtenstein is bringing Germany to the International Court of Justice for violation of national sovereignty. A German intelligence report alleged that the principality was an international money-laundering center. (Associated Press)
New Warrant for Russian Magnate (April 25, 2001)
Moscow issued a new international arrest warrant against Vladimir Gusinsky for money-laundering, after the Spanish court refused to extradite him. Mr. Gusinsky claims the warrant for fraud is an excuse to punish him for his critical stance against the Russian government. (Guardian)
Dollars flee Russia for Other Havens (March 27, 2001)
Russia tries to address the increase of capital flight. "It is not the cause of our misfortune, but a result of our insufficiencies, a consequence of these causes", says the analyst Mikhail Delyagin of the Institute for the Problems of Globalization. (Associated Press)
French Court Gives Former Foreign Minister Jail Term (May 30, 2001)
A French court convicted former Foreign Minister Roland Dumas to six months in prison for his involvement in the Elf Aquitaine case, a corruption trial that has enthralled France. (Associated Press)
French Deputies Seek Chirac Impeachment (May 21, 2001)
Thirty French deputies have signed a petition to impeach French President Jacques Chirac over bribery while Paris mayor from 1977 to 1995. (Reuters)
Judge Drops Chirac Corruption Probe (April 26, 2001)
Judge Halphen, investigating the corruption case involving the French president, announced he will stop pursuing Mr. Chirac. The case falls out of his jurisdiction, he said. (Associated Press)
Chirac Caught Up in Africa Scandal (April 6, 2001)
As dedicated magistrates pursue corruption cases in France, there are investigating even the most powerful political figures, including the president of the republic himself. Many of the scandals are related to Africa. (Africa Analysis)
British Warrant Issued in French Arms Row (March 26, 2001)
After Jean-Christophe Mitterand, Pierre Falcone and Jacques Attali in France, the corruption scandal on arms trade with Angola arrived in the UK, where Scotland Yard received the order to investigate Arcadi Gaydamak - a mysterious character. (Guardian)
North America
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)
(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)
2001
Treasury Chief: Tax Evasion Is on the Rise (July 19, 2001)
Is US Treasury Secretary Paul H. O'Neill really keen on pursuing rich tax evaders who have deposits in offshore accounts, as the New York Timesconcludes from his testimony before the US Senate?
Correspondent Banking: A Gateway For Money Laundering (May 2001)
A report by the US Senate identifies the "longstanding, widespread, and ongoing" failure of most US banks to have "adequate anti-money-laundering safeguards in place." (Economic Perspectives)
US Banks Lax on Dirty Money (February 5, 2001)
US Senate pushes for tighter controls on money laundering. Now, just how well does this fit with the Bush administration? (BBC)
New Guidelines Issued for US Banks (January 16, 2001)
After money laundering scandals at Citibank and the Bank of New York, the US finally adopts guidelines to "help steer US banks away from corrupt foreign officials". Too bad these guidelines are only voluntary. (Associated Press)
Carribbean
2001
Cuba's Anti-Corruption Ministry (May 4, 2001)
Cuba set up a new ministry to eradicate corruption and to save the forty year old regime.(BBC)
Latin America
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 Timesinvestigative 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 Reutersarticle.
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
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)
(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)
2001
CIA Paid Millions to Montesinos (August 3, 2001)
The CIA played an important role supporting Vladimiro Montesinos while he was working for both sides in the drug war in Peru. (Miami Herald)
Former Argentine President Arrested (June 8, 2001)
Police placed former president Carlos Menem under house arrest after Argentine Federal Judge Urso requested his detainment for alleged illegal arms trade during Menem's presidency. (Associated Press)
Feud Breeds Political Scandals and Public Outrage in Brazil (May 6, 2001)
For the third time in a decade, Brazil is living through a corruption scandal at the highest level of government. Millions of dollars in loans have been unaccounted for. (New York Times)
Africa
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)
(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)
(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)
2001
Corruption in West and West-Central Africa (2001
Dracula Taking Over Uganda's Blood Bank? (July 31, 2001)
In Uganda, President Museveni and other government officials appear to have used the privatization of the state bank to fill their own pockets. (Monitor, Uganda)
ECOWAS Justice Ministers' Conference Ends in Accra (May 25, 2001)
For the first time, ECOWAS Ministers of Justice held a conference to define a common framework for dealing with corruption. Heads of State from the sub-region are likely to change the conference blue print at the ECOWAS summit. (ExpoTimes)
The Nyanga Declaration on the Recovery and Repatriation of Africa's Wealth Illegally Appropriated and Banked or Invested Abroad (March 2001)
International Transparency launches a campaign to trace laundered money and repatriate stolen wealth to Africa.
Asia and Australia
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)
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 Postwelcomes 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.
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)
(The Jakarta Post)
2001
Anti-Corruption Action Plan for Asia-Pacific (May 25, 2001)
The Asian Development Bank and OECD have drafted an Anti-Corruption Plan for the Asia-Pacific region. The plan contains non-binding principles and standards for strengthening national and regional efforts to combat corruption. (Asian Development Bank Release)
A Question of Corruption (May 7, 2001)
The Taipei Timesdiscusses the link between corruption and the political system in Taiwan. A heritage from the KMT which imported corruption from its exile from China.
Indonesia Leader Faces Censure (April 30, 2001)
An impeachment procedure against president Wahid is pending in the Senate, for alleged corruption and incompetence. It is the second in the past three months. (Associated Press)
Estrada Arrested on Corruption (April 25, 2001)
The Philippino police arrested Estrada for $82 million in bribery and corruption during his presidency. The Associated Pressprovides a chronology of the Estrada corruption case.
Corruption Found to Persist in Many Countries in Asia (March 19, 2001)
A report by the Political and Economic Risk Consultancy analyzes the role the Asian crisis had on corruption and ranks countries according to "levels" of corruption. (Agence France-Presse)
Middle East
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)
