Briefings
Culture vs Corruption Diary
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Fraud: Claimant
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| November 2006 |
Welcome to the November edition of Mishcon's Culture vs Corruption Diary, the object of this diary is to provide businesses and their advisors with a snapshot of what is happening in the world of corruption in the last month.
We make no judgement whatsoever as to the morality, legality or appropriateness of the conduct which forms the subject matter of this diary. We simply aim to bring these matters to the attention of those whose responsibility it is to set ethical standards and produce business practice guidelines for the companies they work for, to allow them to make an informed decision on the best practice for their organisation.
United Kingdom
Construction
The City of London Police has set up a new unit to investigate whether ten companies, operating mainly in the UK construction sector, won contracts by bribing overseas officials.
The Daily Telegraph, 26 October 2006
According to a recent survey of UK construction companies 41% of respondents had been offered a bribe at least once and 51%
thought corruption in that sector was either "extremely common" or "fairly common".
Corruption in the UK Construction Industry published by CIOB, September 2006
Government
Michael Howard, the former Conservative leader, has been interviewed by police as a witness in connection with an ongoing investigation into in the cash for peerages investigation.
The Times, 24 October 2006
Hospitality and Leisure
Compass, the contract catering company, has settled US lawsuits with ES-KO and Supreme Foodservice for £40m. The claims for loss of business were brought following allegations of corruption at the United Nations.
Financial Times, 17 October 2006.
International Business
According to a recent survey a third of international companies think they have failed to win new business over the past year because of bribery by competitors.
International Business Attitudes to Corruption published by Control Risks and Simmons & Simmons, October 2006
According to a recent survey Indian and Chinese firms are the most willing to pay bribes abroad.
Bribe Payers Index published by Transparency International, October 2006
Legislation
Parliamentary time has elapsed for a second reading of the Corruption Bill. No further progress will be made this session.
Parliamentary time has elapsed for a second reading of the Honours (Prevention of Corruption) Bill. No further progress will be made this session.
Parliamentary time has elapsed for a second reading of the International Development (Anti-Corruption Audit) Bill. No further progress will be made this session.
North America
Government
Gifts made by Philip Anschutz to Deputy Prime Minister John Prescott have been reported to the US Department of Justice under laws banning American businessmen from attempting to bribe foreign officials.
The Times, 19 October 2006
Curt Weldon, a Republican congressman, is under investigation by the FBI. It is alleged that Mr Weldon illegally helped his daughter and a close friend win lobbying contracts.
The Times, 17 October 2006
Bob Ney, a Republican congressman, has pleaded guilty to criminal corruption charges. Mr Ney was implicated in the recent scandal surrounding Jack Abramoff.
Financial Times, 14 October 2006
US Department of Justice under laws banning American businessmen from attempting to bribe foreign officials.
The Times, 19 October 2006
Curt Weldon, a Republican congressman, is under investigation by the FBI. It is alleged that Mr Weldon illegally helped his daughter and a close friend win lobbying contracts.
The Times, 17 October 2006
Bob Ney, a Republican congressman, has pleaded guilty to criminal corruption charges. Mr Ney was implicated in the recent scandal surrounding Jack Abramoff.
Financial Times, 14 October 2006
Media
The Securities and Exchange Commission has dropped its investigation into Richard Perle, the former US defence adviser. Mr Perle came under scrutiny for approving hundreds of millions of dollars in compensation to senior executives at Hollinger International, the newspaper group.
Financial Times, 25 October 20
Western Europe
Media
Vivendi, the French media company, has filed a civil suit under the United States Racketeer Influenced and Corrupt Organisations Act against Deutsche Telekom's T-Mobile USA mobile phone unit. The action relates to a dispute between the two companies over Vivendi's investment in Polish telecoms company, Polska Telefonia Cyfrowa.
Financial Times, 25 October 2006
The Securities and Exchange Commission has dropped its investigation into Richard Perle, the former US defence adviser. Mr Perle came under scrutiny for approving hundreds of millions of dollars in compensation to senior executives at Hollinger International, the newspaper group.
Financial Times, 25 October 2006
Asia
Hospitality and Leisure
Investigators in China have questioned Yu Zhifei, the general manager of the Shanghai International Circuit, which hosts F1 and Moto Grand Prix, in connection with alleged illegal business practices.
The Times, 19 October 2006
Mishcon de Reya
Mishcon's Culture vs Corruption Diary is published by the Corporate Investigations and Asset Recovery Group of Mishcon de Reya Solicitors. Widely recognised as the leader in the field of fraud investigations, the Group has extensive experience in conducting and/or project managing highly sensitive international investigations in respect of bribery and corruption allegations. The Group founded and runs both the Asset Protection & Recovery Network, made up of international legal fraud specialists, and the Financial Fraud Group, for risk and compliance officers.