Archive for the ‘Corruption’ Category

EU Corruption Report: Brussels bureaucrats kill chapter on corruption in EU Institutions

February 3, 2014

The EU corruption report is out today and is getting a lot of media attention. It has no big surprises and estimates the cost of corruption directly in the member states to be about 120 billion € which is about the same size as the EU budget and is about 1% of the total EU GDP at about 12 trillion €.

But – in a major victory for the faceless bureaucrats of Brussels – the report does not consider corruption within EU Institutions as it was supposed to. My perception is that the corruption level within the EU Institutions is as bad as in the worst member state. In Brussels where the bureaucrats are drawn from member countries, the practices they employ are imported from what they are used to in their home countries. And Brussels – in my little experience and in my opinion – is perfectly suited to levelling-down and to the spreading of the worst practices available.

EU Observer: The European Commission has decided not to include a chapter on EU institutions in a report on corruption in member states …. The original plan, announced in 2011, was to assess corruption across the member states and within the EU institutions. EU home affairs commissioner Cecilia Malmstrom is set to release the first bi-annual report on Monday (3 February), around six months later than originally planned.

Malmstrom’s spokesperson Michael Cercone told this website in an email that the commission had considered assessing the anti-corruption efforts of the EU’s own institutions but “realised that this is something we will have to come back to in a future EU anti-corruption report – to be sure that the evaluation would be satisfactory and objective.”

And when this part of the report does come out – if it is ever completed – it will ensure that the analysis is set so far in the past that no current bureaucrats/politicians will be implicated.

But the size of the corruption suggests that while petty corruption is much lower than in some developing countries, the extent of large sophisticated contract scams is not insignificant. It takes a few thousands of petty corruption events to come up to the level of a single large contract scam. The Report points out that:

The individual country analyses revealed a wide variety of corruption-related problems, as well as of corruption control mechanisms, some of which have proved effective and others have failed to produce results. Nevertheless, some common features can be noted either across the EU or within clusters of Member States. The country analyses show that public procurement is particularly prone to corruption in the Member States, …..

Of course the EU countries exhibit a wide variety of behaviour and some member states view the payment of “fees” or the exchange of “favours” to get an advantage as a normal activity. As the report states “However, the long-standing absence of comprehensive anti-corruption strategies in some Member States which are facing systemic corruption problems turned out to be an issue of concern, ..”.  There is a political dimension as well Provoked by the crisis, social protests have targeted not only economic and social policies, but also the integrity and accountability of political elites. High-profile scandals associated with corruption, misuse of public funds or unethical behaviour by politicians have contributed to public discontent and mistrust of the political system. Integrity in politics is a serious issue for many Member States….”.

Oh well! Business will continue as usual in Brussels.

Sochi Winter Olympics: Champions of Corruption

January 28, 2014

A new site defines the Champions of Corruption at the Sochi Winter Games.

The site asserts:

sochi champions of corruption

Athletes are not the only people who compete in Sochi. Officials and businessmen also took part in the Games and turned them into a source of income. The Anti-Corruption Foundation honored the most distinguished money siphoners in five different sports

Classic Embezzlement, Arkady Rotenberg  

Verbal Freestyle, Vladimir Putin 

Ecological Multi-Sport, Vladimir Yakunin 

Pair Contract, Alexander Tkachyov and Roman Batalov 

Figure Lending, Vladimir Potanin

The site is ostensibly anti-corruption but the objectives are clearly political:

The AustralianAlexei Navalny, an anti-corruption campaigner who ran for mayor of Moscow last September, has used the site to combine data gathered during his own investigations with media accounts and other activists’ reports. According to Mr Navalny’s Encyclopaedia of Spending, the athletes are not the only people who compete: “Officials and businessmen also took part in the Games and turned them into a source of income.”

His site honours five “champions of corruption”, including President Vladimir Putin, who is accused of lying about the cost of the project when he claimed it was $US6.5 billion. Mr Putin has rejected the claims.

US “sells” Norway Ambassadorship to an uninformed hotelier

January 27, 2014

The uglier side of “democracy”.

That generous donors to the US political parties are rewarded with Ambassadorships is common knowledge. The smaller and “less important” countries are usually the destination for these bought positions unless a very large donation is made. $6.2 million can buy an Ambassadorship to France or Monaco.

And now Norway knows precisely how unimportant it is considered by Obama’s establishment as George Tsunis, a rich Greek-American hotelier and a very generous donor to the Democratic Party made an idiot of himself at the Senate confirmation hearings. After all he can’t do much harm sitting in Oslo!!!

He thought Norway was a Republic and didn’t know which parties were in the coalition ruling Norway. It would have been pointless asking him the name of the King. An ignorant person is a correct description – at least about Norway. He does apparently know something about running a hotel. It does not say much for his knowledge (and perhaps also his intelligence) but it does not say much either for the briefings he must have received from the State Department. A member of the Greek Orthodox church now going to be an expert in a Lutheran country!!

Or did the career diplomats deliberately make sure he was not briefed properly because they wanted to showcase his ignorance? 

George Tsunis at US Senate in Jnuary 2014 - source screen grab - The Local

George Tsunis at US Senate in Jnuary 2014 – source screen grab – The Local

Future US envoy displays total ignorance of Norway

The US’s next ambassador to Norway has committed a jaw-dropping diplomatic blunder before he even begins, describing politicians from the Progress Party, which has seven ministers, as “fringe elements” that “spew their hatred” in a US Senate hearing.

Asked by Senator John McCain what he thought it was about the “anti-immigration” Progress Party that appealed to Norwegian voters, Greek American businessman George Tsunis seemed unaware of the party’s role in the ruling coalition. 
“You get some fringe elements that have a microphone and spew their hatred,” he said in the pre-appointment hearing. “And I will tell you Norway has been very quick to denounce them.” 
McCain interrupted him, pointing out that as part of the coalition, the party was hardly being denounced. 
“I stand corrected,”  Tsunis said after a pause.  “I would like to leave my answer at… it’s a very,very open society and the overwhelming amount of Norwegians and the overwhelming amount of people in parliament don’t feel the same way.”
The blunder came after a faltering, incoherent performance from Tsunis, in which he made a reference to Norway’s “president”, apparently under the impression that the country is a republic rather than a constitutional monarchy. 
Tsunis founded the hotel management company Chartwell Hotels, which operates properties for InterContinental Hotels, and other major hotel groups. He is one of the leading figures in the Greek-American establishment, and is heavily involved in the Greek Orthodox Church. 
He donated $267,244 to the Democratic party in the 2012 election cycle, and $278,531 in 2010, making him one of the party’s top individual donors. 
His ineptitude has also been noticed in the US (but he was confirmed anyway).

billmoyers.com:

The State Department is filled with veteran foreign service officers with years of experience in international relations. Most of them are products of elite universities, where they studied subjects like conflict resolution or international trade theory. Many are multilingual, and all have deep expertise on the political scenes of various countries.

Yet they routinely watch as deep-pocketed political donors with little or no foreign service experience are appointed to serve as America’s ambassadors overseas. The practice is so common that a pair of international relations scholars at the University of Pennsylvania were able to put prices on various plumb ambassadorships. According to The New York Times, “the study found that political ambassadors who had made campaign donations of $550,000, or bundled contributions of $750,000, had a 90 percent chance of being posted to a country in Western Europe.” The best postings — in France or Monaco — could cost up to $6.2 million in direct contributions. ….

Other Norwegian media described Tsunis as having “trampled through the salad bowl,” according to Olivier Knox at Yahoo NewsKnox added that Tsunis wasn’t the first to fumble the hearing:

McCain, already flummoxed by the apparent inability of Obama’s choice to be ambassador to Hungary to list strategic US interests there, closed his questioning with a bit of sarcasm: “I have no more questions for this incredibly highly qualified group of nominees.”

Corruption is in the genes of the EU

October 20, 2013

In the developing world venality is often a matter of survival. In Europe venal behaviour is a matter of choice. The EU bureaucracy in Brussels has corruption in its genes and tax-payer’s money running through its veins. It is remarkable that so many ostensibly democratic countries (at least in name) have so easily surrendered their powers to a bloated and corrupt group in Brussels.

It is not Best in Class that applies. The Least Common Factor applies in Europe. Brussels is as corrupt and as wasteful and as inefficient as the worst country in Europe. In this case the corruption and the condoning of corruption in Brussels is as bad as in Greece. And corruption in Greece was not a small contributor to their financial problems.

Der Spiegel writes:

Anti-corruption officials in Brussels have failed to investigate reports of squandered EU funds at a training institute in Greece, a German paper reported Friday. Well-connected teachers were allegedly paid up to €610 per hour for up to 225 work hours per month.

The European Anti-Fraud Office (OLAF) has reportedly ignored repeated tip-offs about squandered European Union funds in Greece, according to an article in the Friday edition of the Süddeutsche Zeitung. The German daily reports that a Greek civil servant uncovered multiple cases of nepotism and vastly inflated salaries while inspecting the finances of a vocational training institute. Officials in Brussels have apparently not acted on any of the whistleblower’s suspicions, which he communicated in several letters, the paper added.

According to the newspaper report, Giorgos Boutos, a government finance official in Athens, began auditing the books of the Organization for Vocation Education and Training (OEEK) in 2006. The institute receives and distributes EU funds earmarked for vocational training in Greece. Boutros repeatedly stumbled upon irregularities and documented the cases in numerous letters to OLAF.

…. The case involves at least €6 million ($8.2 million). It’s not an excessive sum of money, but it is well documented. Boutos was able to substantiate the irregularities in his letters to the EU with contracts, hotel bills and bank statements. He reportedly found that 75 percent of the misappropriated money had come from the EU.

The details provided by the Süddeutsche Zeitung are sure to raise eyebrows. Some of the instructors are said to have been paid for up to 225 hours per month, even during periods when they were abroad. Hourly wages for teachers were reportedly as high as €610. The alleged corruption was compounded by apparent instances of nepotism: The son of a cabinet member taught a course on silver-plating watches, the wife of a Socialist politician led classes on both dentistry and geography, and relatives of the institute’s leader held jobs there.

….. It wasn’t until seven months — and several more inquiries — later that Boutos received fresh news about the case. Still, that letter merely stated that OLAF was in the process of “a comprehensive reorganization,” and asked him to be patient. 

Meanwhile, Boutos told the newspaper, many similar cases of misspent EU funds now fall under the statute of limitations because the EU took too long to address them. Exactly €516,000 of misappropriated EU funds have been repaid. But Boutros stressed that the EU could demand that all such funds be paid back — that is, if it really wanted to.

Boutos also questioned whether investigations had been delayed because some suspected fraud cases involved relatives of government and party officials — or whether Brussels even cared at all about such instances.

FIFA promoting and condoning slave labour

September 27, 2013

FIFA are “going to investigate”.

It would seem a little too little and much too late.

Brazil is resorting to extraordinary means to get ready for the World Cup next year.

BBC: 

Construction workers employed on a project in Brazil ahead of next year’s World Cup face “slave-like” conditions, officials say.An investigation into the expansion of Sao Paulo international airport found that 111 workers were living in poor accommodation near the building site.

They were approached in poorer states and some had to pay more than $220 (£140) to secure a job, the Labour attorney general’s office says. The promised wages were $625 a month.

The workers, among them six ethnic Pankaruru indians, were reportedly lured in the country’s north-east with promises of work in Sao Paulo. However, many were not immediately employed and had to stay in one of 11 makeshift camps near the airport which is being expanded in preparation for next year’s World Cup. The Labour attorney general’s office says it found the workers living in “conditions analogue to slaves” and has 30 days to present legal action against the contractors.

According to Brazilian legislation, companies must contract migrant workers in their hometown before transferring them to other cities. 

Similar investigations were under way in other World Cup-related building sites, attorney Cristiane Nogueira, from the Labour attorney general’s office in Sao Paulo, told Brazilian newspaper Folha de S Paulo.

But it would seem to be even worse in Qatar for their World Cup in 2022 – undeserved and where the voting was clearly bought. FIFA have been falling over themselves to ensure their share of Qatar money and where they – for the first time ever and in conflict with most football seasons – are going to hold the World Cup in winter. Here at least 44 Nepalese construction workers have died in just 3 months and the World Cup is still 9 years away. At the rate they are going thousands could die before the World Cup is held.

The Guardian: 

Dozens of Nepalese migrant labourers have died in Qatar in recent weeks and thousands more are enduring appalling labour abuses, a Guardian investigation has found, raising serious questions about Qatar’s preparations to host the 2022 World Cup.

This summer, Nepalese workers died at a rate of almost one a day in Qatar, many of them young men who had sudden heart attacks. The investigation found evidence to suggest that thousands of Nepalese, who make up the single largest group of labourers in Qatar, face exploitation and abuses that amount to modern-day slavery, as defined by the International Labour Organisation, during a building binge paving the way for 2022.

According to documents obtained from the Nepalese embassy in Doha, at least 44 workers died between 4 June and 8 August. More than half died of heart attacks, heart failure or workplace accidents.

The investigation also reveals:

 Evidence of forced labour on a huge World Cup infrastructure project.

• Some Nepalese men have alleged that they have not been paid for months and have had their salaries retained to stop them running away.

• Some workers on other sites say employers routinely confiscate passports and refuse to issue ID cards, in effect reducing them to the status of illegal aliens.

• Some labourers say they have been denied access to free drinking water in the desert heat.

• About 30 Nepalese sought refuge at their embassy in Doha to escape the brutal conditions of their employment.

The allegations suggest a chain of exploitation leading from poor Nepalese villages to Qatari leaders. The overall picture is of one of the richest nations exploiting one of the poorest to get ready for the world’s most popular sporting tournament.

“We’d like to leave, but the company won’t let us,” said one Nepalese migrant employed at Lusail City development, a $45bn (£28bn) city being built from scratch which will include the 90,000-seater stadium that will host the World Cup final. “I’m angry about how this company is treating us, but we’re helpless. I regret coming here, but what to do? We were compelled to come just to make a living, but we’ve had no luck.” 

Of course FIFA is shocked and distressed and will investigate! Not as distressed as the workers are in Qatar or as distressed as the families of the dead.

The Telegraph: 

Britain’s most senior Fifa member said he was “appalled and distressed” by allegations made in an expose of construction practises in the Gulf State as it readies its infrastructure to stage the 2022 tournament.

Boyce told the Telegraph Sport: “Fifa must fully investigate all the facts contained in the article and hopefully report back to the executive committee.”

The Northern Irishman also insisted the matter would be discussed at next week’s Fifa executive committee meeting.

That meeting had initially been expected to confirm that the tournament would move from the summer but is now in danger of being hijacked by a “slavery” scandal. …

 

Anil Ambani chooses the “selective memory defense”

August 23, 2013

The saga continues.

The potential connection between the Indian 2G scam and the menagerie of companies in the Anil Ambani group (Swan, Tiger, Parrot, Zebra, Penguin and Giraffe.) surfaced in early 2011. But now it is reaching Court and Anil Ambani deposed yesterday. His wife Tina is due to depose today. His ADAG Group has lost much of its former gloss and he may not command the same level of political support and protection that he could a few years ago. He no longer has the unquestioning shareholder admiration his father once had (and which to a large extent his brother still has)

Amban's and friend

Ambani’s and friend

(Commentary removed – October 2014)

In Court, Ambani’s memory has suddenly become remarkably selective as the Hindu reports:

‘I am unable to recall if I was on the board of this company in 2007’

“I am not aware of any company by the name of Swan Telecom (P) Limited. Reliance Telecom Limited is a subsidiary of Reliance Communication Limited and I am non-executive chairman of the latter company. Earlier I was on the board of Reliance Telecom but I do not recall the period. I am unable to recall if I was on the board of this company in 2007,” Mr. Ambani said in reply to a prosecutor’s query, while recording his evidence as prosecution witness in the court of Special Judge O.P. Saini here.

But when he was shown a form for opening a bank account on behalf of Swan Consultants (P) Limited at an ICICI Bank branch in Mumbai and his attention was drawn to the signatures and photographs of persons authorised to operate the account, Mr. Ambani admitted that it bore his signature and that of his wife Tina.

He also admitted that copies of his and his wife’s PAN cards, tagged with the account opening form, bore their signatures. But he refused to identify a document captioned “declaration for promoter owned company.”

“I have also been shown annexure 2 under the caption ‘declaration for promoter owned companies’, which mentions the name of the parent company as Reliance Energy Limited and the names of common promoters as Anil Ambani [myself] and Tina Ambani … I am aware of neither this document nor the contents mentioned therein, as this is a document of the bank,” Mr. Ambani said.

However, he identified three of the accused. “I have been shown photographs of Gautam Doshi, Surendra Pipara and Hari Nair … against their names and I identify them. However, I cannot identify their signatures. I identify these three persons as they are part of the group. However, I cannot recall their designation now.”


(Commentary deleted)

Back in February Tehelka reported:

THE 2G spectrum scam is getting murkier by the day. A well-known Maharashtra politician and a Delhi- based real estate group have now come under the probe agencies’ scanner for their suspected role in the scam.

….

Now evidence is forthcoming from the banks involved in the jungle of transactions  involving the menagerie of companies controlled by Anil Ambani’s ADAG Group and which confirms that Anil Ambani was central to the games being played:

Anil Ambani and wife Tina were the only two individuals with unlimited powers to transfer money and make payments for the sevenAnil Dhirubhai Ambani Group (ADAG) companies that are now under CBI investigation for their links to the 2G scam-linked Swan Telecom, according to the testimony of Amit Khot, deputy branch manager of ICICI Bank’s Nariman Point branch, where these seven companies have their accounts. 

The menagerie included Swan, Tiger, Parrot, Zebra, Penguin and Giraffe.

The 2G Zoo

The 2G Zoo

Bizarre in Brazil: Referee stabs player, crowd beheads referee

July 7, 2013

Of course in Brazil, football fanaticism is quite similar to the religious fanaticism seen elsewhere. But it does not bode well for the World Cup in 2014. After hosting the Confederation Cup – and fairly successfully – Brazil saw the street protests which have had the spending on the World Cup extravaganza in their sights. Along with the corruption that pervades politics and – of course – football. And violence is never far away when football is involved.

BBC: 

Football spectators in northern Brazil decapitated a referee after he fatally stabbed a player for refusing to leave the pitch, officials say.

An angry mob stormed the field during the amateur game in the state of Maranhao and stoned Otavio da Silva to death before severing his head.

Police said the murder was in retaliation for Mr Silva stabbing player Josenir dos Santos.

One man has been arrested over the killing and investigations continue.

The incident took place on 30 June in the remote town of Pio XII, but news of the event has been slow to emerge.

The state’s Public Safety Department said it started when the referee and Mr Santos got into fist fight after the player was sent off but refused to leave the pitch.

Map of Brazil

Mr Silva then pulled out a knife and wounded Mr Santos, who died on his way to the hospital.

The player’s friends and relatives rushed onto the field, stoned the referee to death and dismembered his body, the department said in a statement.

Parliamentary pigs and taxpayer troughs

June 11, 2013

Apparently pigs and humans share many genetic characteristics:

Researchers, who undertook the largest ever study of the pig genome, found that swine are adaptable, easy to seduce with food and susceptible to domestication – much like humans. 

Insights into the genetic code of pigs reveal the swine and its cousin the wild boar have much in common with humans.

from bellscorners.wordpress.com

This affinity between human and pig behaviour is demonstrated daily – and especially – by parliamentarians the world over. They don’t just feed – they gorge themselves. Perhaps it is the availability of the trough of taxpayers money which triggers our parliamentarians to revert to ancient type. Following the recent revelations about UK parliamentarians and their greed (Trougher Yeo), or in the US for example, comes this story from Australia:

The New South Wales Finance Minister Greg Pearce is facing further accusations about his parliamentary travel, with a Sydney newspaper reporting that he spent thousands of dollars on flights that coincided with sports events.

Last week, Premier Barry O’Farrell initiated an inquiry into claims the minister may have breached travel guidelines by taking a trip to Canberra that was initially booked through his office but was subsequently repaid by the minister.

The move came just days after he was accused of being drunk in parliament, prompting a public warning from the Premier.

Now the Daily Telegraph newspaper is reporting Mr Pearce has made at least $9,000 worth of trips to major sporting events around the country.

It says the events include the Melbourne Cup, AFL Grand Final and Australian Open, although Mr Pearce has denied the newspaper’s suggestions that he travelled to a V8 event on the Gold Coast last year.

I suppose they could all employ the defence that it is all in their genes and it is the fault of the taxpayers in providing them with the temptations which trigger their piggy instincts.

Pots and Kettles or Yeo-ing the Gummer

June 9, 2013

The Gummer has been Yeo-d. I have to conclude that Tim Yeo is the pot and Gummer is the kettle. Now if “Lord Deben”  – aka John Selwyn Gummer – fights back it could become a case of Gumming the Yeo.

Two articles today which need to be juxtaposed. This is perhaps mostly of domestic interest in the UK but I am always interested when Parliamentarians live down to my expectations. Of more general interest could be the manner in which “green” subsidies have been sucked out by the owners and developers of  wind and solar projects with the aid of venal politicians who have willingly helped to make the “rules”.

Was there ever a time when politicians died of shame?

Daily Mail: 

  • Tim Yeo has complained about Lord Deben’s undisclosed green interests
  • Mr Yeo has been paid more than £400,000 by three green companies
  • Lord Deben is chairman of firm which connects windfarms to National Grid

Tim Yeo, chairman of the Energy and Climate Change select committee, has protested about Lord Deben remaining chairman of Veolia Water UK while also chairing the Committee on Climate Change, an independent body that advises the Government on the impact of climate change.

Mr Yeo’s critics will argue his protest smacks of hypocrisy as he has been paid more than £400,000 by three green companies since 2009.

Lord Deben, John Selwyn Gummer – who as Agriculture Minister in 1990 tried to persuade his daughter Cordelia to eat a hamburger during the BSE crisis – was required to undergo a ‘confirmation hearing’ before Yeo’s committee last September after being appointed chair of the Climate Change Committee. ….. 

and

The Telegraph: 

Tim Yeo, the chairman of the Commons Energy and Climate Change Committee, also said he had coached John Smith, managing director of GB Railfreight, before the executive gave evidence to the committee last month. Yeo is a paid director and shareholder of Eurotunnel — the firm’s parent company.

Mr Yeo was filmed by undercover reporters working for The Sunday Times saying: “I told him [Mr Smith] in advance what to say. Ha-ha.”

When asked if he would be interested in a £7,000-a-day consultancy contract with a solar company, the MP said: “If you want to meet the right people, I can facilitate all those introductions and I use the knowledge I get from what is quite an active network of connections.”

The reporters queried if this included Government figures. Mr Yeo replied “Yes”.

The House of Commons’ code of conduct forbids MPs from acting as paid advocates, including by lobbying ministers. ….. 

Randy Andy FRS

May 5, 2013

Either the Royal Society has sold a Fellowship or perhaps they believe that HRH Prince Andrew, the Duke of York will bring great credit to the Society and the scientific community. A remarkable vote where only a “Yes” vote was permitted. No doubt we will hear that there was a clear consensus in favour and that his elevation was supported by – wait for it –  all those who supported him!

To put it mildly, Randy Andy has a rather spotted biography.

Either way it does little credit to the Royal Society or its Fellows.

The Guardian: 

After more than 350 years of largely happy association with assorted royalty Britain’s pre-eminent scientific institution, the Royal Society, faces unprecedented dissent from members after Prince Andrew was elected to become a fellow.

While the objections to the prince mainly centre on his slightly chequered career as a royal, a small number among the 1,450 or so Royal Societyfellowship are asking the wider question of whether it is time for an institution based on science to end the practice of honouring people on the basis of heredity.

The controversy has been fuelled by the way the prince was elected to be a royal fellow, a status he shares with Princes Philip, Charles and William, Princess Anne and the Duke of Kent, while the Queen is the organisation’s patron. The ballots sent out to ordinary fellows provided only one box to tick, supporting the measure. Those opposed had to write “no” themselves or otherwise mark or spoil the paper. …