UK: Culture vs Corruption Diary (October 2006)

WELCOME

Welcome to the October 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.

A third person has been arrested by police in connection with the ongoing investigation into allegations of "cash-for-peerages".

The World Bank shareholder governments have asked the President, Paul Wolfowitz, to make a report in Spring 2007 on how the Bank's anti-corruption strategy is being applied. The move is aimed at ensuring the strategy is applied in a consistent manner and that poor countries are not penalised for failing to combat corruption.
Financial Times, 19 September 2006

The Premier League and the Football Association are investigating allegations of corruption, which were made in a recent edition of the BBC's Panorama programme. The programme alleged that some managers were open to bribes from football agents.
The Times, 21 September 2006

Sebastian Coe has been appointed chairman of Fifa's new Ethics Commission. The Commission was set up to tackle match-fixing and financial malpractice in the sport.
The Daily Telegraph, 16 September 2006

A provisional date of 20 October 2006 has been set for the second reading of the Corruption Bill in the House of Commons. The Bill proposes a number of offences of corruption and introduces duties with regard to reporting public sector corruption and the supervision of subsidiary companies.

A provisional date of 20 October 2006 has been set for the second reading of The Honours (Prevention of Corruption) Bill in the House of Commons. The Private Members' Bill had its first reading in the House of Commons on 13 June 2006.

A provisional date of 20 October 2006 has been set for the second reading in the House of Commons of the International Development (Anti-Corruption Audit) Bill. The Bill proposes amendments to section 7 of the International Development Act 2002.

Panayotis Adamopoulos, the head of Greece's competition watchdog, has been jailed pending his trial on charges of extortion and blackmail. Mr Adamopoulos is accused of demanding a bribeof €2.5m from a dairy company.
The Guardian, 18 September 2006

Chen Liangyu, the top Communist Party official in Shangahi, has been removed from office. Mr Chen is under investigation by the Party's anti-corruption watchdog.
The Times, 26 September 2006

The Thai Prime Minister, Thaksin Shinawatra, has been deposed following a military coup. The move follows months of protests and allegations of corruption and abuse of power after Mr Thaksin refused to leave office following the annulment of the results of a general election.
The Daily Telegraph, 21 September 2006

Protesters in Taiwan have demanded the resignation of President Chen Shui-biantens. Mr Chen is being investigated in connection with allegations of embezzlement. As President he has immunity as long as he remains in office.
Financial Times, 16 September 2006

Two senior government officials in Shanghai and the head of a motorway operator, Fuxi Investments, have been detained on charges of corruption in connection to the construction of a motorway. Investigators are examining a Rmd3.2bn investment in Fuxi Investments by the Shanghai pension fund.
Financial Times, 14 September 2006

A High Court judge in South Africa has dismissed the case against Jacob Zuma, former deputy to Thabo Mbeki. Mr Zuma was charged with accepting bribes from two subsidiaries of Thales, the French defence group.
Financial Times, 21 September 2006

Atiku Abubakar, the Nigerian Vice-President has been accused of authorising the transfer of $125m from a government oil and gas agency to fund personal business ventures.
Financial Times, 8 September 2006

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.