Briefings
Culture vs Corruption Diary
Banking & Finance
Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
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| May 2008 |
Welcome to the May edition of Mishcon's Culture vs Corruption Diary, the object of this diary is to provide businesses and their advisors with a snapshot of what has been happening in the world of corruption in the last month.
We make no judgement whatsoever as to the morality, legality or appropriateness of the conduct which forms the subject matter of this diary. We simply aim to bring these matters to the attention of those whose responsibility it is to set ethical standards and produce business practice guidelines for the companies they work for, to allow them to make an informed decision on the best practice for their organisation.
United Kingdom
Banking and Finance
Shinder Gangar and Alan White, former accountants, have been sentenced to more than 7 years in jail for their roles in a conspiracy to corrupt a US official and for taking part in a high yield investment fraud promoted through their accountancy firm, Dobb White & Co.
Serious Fraud Office press release, 11 April 2008
Serious Fraud Office
(SFO)
The SFO has won the right to appeal against a high court judgment, which ruled that it was unlawful to stop the corruption inquiry into a Saudi arms deal with BAE Systems.
The Guardian, 25 April 2008
International organisations
Pharmaceuticals
Sanjaya Bahel, a former procurement chief with the United Nations, has been jailed for 8 years after being found guilty of accepting bribes in exchange for awarding contracts worth $100m to Nishan Kohli, a Florida-based businessman.
Financial Times, 3 April 2008
Surveys
A report by Transparency International has evaluated 42 leading international oil and gas companies based on the transparency of reporting on payments to governments for resource extraction rights. The report found that a number of companies fell short of best practice in reporting financial data and tackling corruption.
The 2008 Report on Revenue Transparency of Oil and Gas Companies, Transparency International, 28 April 2008
Asia
Government
Lee Kun-hee, the chairman of Samsung Group, has been cleared of bribery charges following an investigation into allegations of corruption at South Korea's biggest company.
Financial Times, 18 April 2008
Chen Liangyu, a former Communist party leader in Shanghai, has been sentenced to 18 years in prison for his role in a corruption scandal. Mr Chen was found guilty of "taking bribes and abuse of power" by a court in Tianjin.
Financial Times, 12 April 2008
The Indonesian anti-corruption commission has detained Burhanuddin Abdullah, the governor of the central bank. The commission alleges that Mr Burhanuddin used up to Rp100bn of bank funds to bribe politicians to pass legislation. Mr Burhanuddin denies any wrongdoing.
Financial Times, 11 April 2008
Mishcon de Reya
Mishcon's Culture vs Corruption Diary is published by the Fraud & Insolvency Group of Mishcon de Reya Solicitors. Widely recognised as the leader in the field of fraud investigations, the Group has extensive experience in conducting and/or project managing highly sensitive international investigations in respect of bribery and corruption allegations. The Group founded and runs both the Asset Protection & Recovery Network, made up of international legal fraud specialists, and the Financial Fraud Group, for risk and compliance officers.