UK: Culture vs Corruption Diary (December 2006)

Welcome to the December 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.

The Serious Fraud Office (SFO) is investigating BAE Systems in connection with allegations of corruption involving the Tanzanian government. The allegations relate to the sale of a £27m traffic control system in 2001. BAE is also subject to an ongoing investigation by the SFO in connection with alleged corruption
involving defence contracts in Saudi Arabia.
Daily Mail, 14 November 2006

Police have questioned Alan Milburn, the former Cabinet Minister, in connection with the cash for peerages investigation.
Daily Star, 9 November 2006

According to Transparency International, the US has suffered a "significant worsening" in its perceived levels of corruptionfollowing a series of business scandals and increasing worries over political party funding.
Financial Times, 7 November 2006

Prosecutors in the US have brought charges against twenty-seven people in connection with Internet gambling. The charges include corruption, money laundering and promoting gambling and are the first since Internet gambling was banned.
The Times, 16 November

Peter Hartz, former Personnel Director at Volkswagen, has been charged with 44 criminal counts of breach of trust in connection with a corruption investigation involving Europe's largest carmaker.
The Guardian, 16 November 2006

Lin Cho-shui and Lee Weng-zhong, two senior lawmakers in Taiwan's ruling Democratic Progressive party, have resigned in protest against alleged corruption by President Chen Shui-bian. The move comes after Mr Chen's wife was indicted on corruption charges and her husband named as a joint suspect.
Financial Times, 14 November 2006

The Supreme Court of Appeals in South Africa has rejected an appeal by Schabir Shaik, the former financial adviser to Jacob Zuma, against his conviction on charges of fraud and corruption. Financial Times, 7 November 2006

Eight members of the Cabinet in Malawi have been accused of fraud in connection with securing high-powered jobs.
Sunday Express, 5 November 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.