Worldwide: Culture vs Corruption Diary (October 2007)

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 that 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.

Bill Lerach, a class action lawyer in the US, has pleaded guilty to criminal conspiracy. Mr Lerach paid illegal kickbacks to the lead plaintiffs in some of his lawsuits.
The Financial Times, 21 September 2007

The City of London magistrate’s court has refused to allow evidence relating to the corruption trial of Silvio Berlusconi and David Mills to be heard in public. The hearing is aimed at gathering evidence from British sources, which may be used in Italian courts at a later date. Both men deny the charges.
The Financial Times, 25 September 2007

Mwai Kibaki, the Kenyan President, has rejected a parliamentary bill that would have prevented the country's anticorruption watchdog tackling highprofile political cases.
The Financial Times, 29 September 2007

Investigators in Tanzania are considering criminal charges against BAE Systems in relation to the purchase of a £28m radar system. The 2002 sale is the subject of parallel investigations by the UK's Serious Fraud Office.
The Financial Times, 21 September 2007

Indonesian prosecutors have brought a civil case against former President Suharto. Mr Suharto is accused of using a charity to steal $440m during his time in office.
The Financial Times, 25 September 2007

Gloria Macapagal Arroyo, President of the Philippines, has ordered the suspension of a $330m telecoms deal with ZTE Corp, China's second largest telecommunications equipment maker. ZTE is the subject of a Senate probe into corruption allegations. The Financial Times, 24 September 2007 The former President of Bangladesh and her son have been arrested in connection with alleged corruption. Khaleda Zia and her son Arafat Rahman Coco deny the charges.
The Independent, 4 September 2007

Albert Fujimori, the former Peruvian President, has been extradited from Chile to face charges of corruption. Mr Fujimori denies the charges.
The Independent, 24 September 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.