Welcome to the June 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.
WESTERN EUROPE
Defence
Swiss prosecutors have opened an investigation into alleged money laundering in connection with BAE Systems' Saudi Arabia arms sales. The investigation comes five months after the UK dropped an investigation into alleged bribery in the deals.
Financial Times, 15 May 2007
Media and Communications
John Rosalini and Jordi Alba, both film producers, will go on trial in Barcelona charged with extortion. The film makers were accused of extortion after trying to enforce a US court judgment in Spain. A court in Illinois found the pair entitled to payment for a film project that was cancelled without a "kill fee".
Financial Times, 22 May 2007
Manufacturing
German prosecutors and state criminal investigators are investigating allegations that a paint supplier in northern Bavaria paid bribes to at least five VW employees to gain contracts.
Financial Times, 11 May 2007
SOUTH AMERICA
Government
Silas Rondeau, the Brazilian minister for mines and energy, is expected to resign after being accused of accepting bribes. Mr Rondeau denies any wrongdoing.
Financial Times, 23 May 2007
ASIA
Government
The former head of China's food and drugs regulator has been sentenced to death for taking bribes in return for approving medicines.
Financial Times, 30 May 2007
In Thailand the Constitutional Tribunal is expected to deliver its verdict on whether the two largest political parties committed fraud during the general election in 2006. The Thai Rak Thai party and the Democrat party stand to be dissolved if found guilty.
Financial Times, 28 May 2007
NORTH AFRICA
Government
A High Court judge has found the former Zambian president, Frederick Chiluba, and four associates guilty of conspiring to misappropriate approximately $46m of Zambian public money. The case was heard over four months and held in private to protect the interests of defendants facing criminal proceedings in Zambia.
Financial Times, 5 May 2007
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.
This article is only intended as a general statement and no action should be taken in reliance on it without specific legal advice.
