UK: Culture vs Corruption (May 2007)

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 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 decision to drop the enquiry into alleged corruption at BAE Systems in relation to an arms deal with Saudi Arabia has caused "severe damage" to Britain's international reputation, according to the Commons Foreign Affairs Committee.
The Daily Telegraph, 30 April 2007

Police have completed their investigation into the cash-for-honours scandal. The Crown Prosecution Service and the Attorney General will decide over the coming weeks whether to recommend bringing charges.
The Daily Telegraph, 21 April 2007

Michael Hale, a former Ministry of Defence official, has been sentenced to two years in prison after admitting to selling commercial secrets to Pacific Consolidated Industries, an American engineering company, between 1999 and 2003.
Daily Mail, 17 April 2007

The US Securities and Exchange Commission has begun a formal investigation into corruption allegations at Siemens, the German engineering company. The company is also being investigated in five European countries.
The Guardian, 27 April 2007

Britain and France have made a formal complaint to the European Commission about the lack of progress on legal reforms in Bulgaria and Romania, which are aimed at stamping out corruption.
Financial Times, 27 April 2007

The US Securities and Exchange Commission has begun a formal investigation into corruption allegations at Siemens, the German engineering company. The company is also being investigated in five European countries.
The Guardian, 27 April 2007

The former Italian prime minister, Silvio Berlusconi, has been cleared of corruption charges.
The Evening Standard, 27 April 2007

Isabel Pantoja, a Spanish singer, has been arrested in connection with alleged tax evasion and money laundering for her former boyfriend Julian Munoz, the jailed former Mayor of Marbella.
The Times, 5 May 2007

An investigation in Pakistan into alleged corruption involving Benazir Bhutto has been dropped.
The Times, 6 April 2007

Ma Ying-jeou, a candidate in Taiwan's presidential election in 2008, has gone on trial accused of pocketing part of a government allowance during eight years as Taipei's mayor. Mr Ma says he is a victim of "political persecution".
Financial Times, 30 March 2007

Documents released by the World Bank's ethics committee show that Paul Wolfowitz tried to limit access to employee salary information after the bank launched an inquiry into the promotion of Mr Wolfowitz's girlfriend.
The Independent on Sunday, 29 Aril 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.

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