Worldwide: Culture vs Corruption Diary (January 2007)

Welcome to the January 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 US Department of Justice may launch an investigation into alleged corruption by BAE Systems in connection with Saudi arms contracts. The move follows a decision by Lord Goldsmith, the Attorney General, to halt an investigation by the Serious Fraud Office.
The Daily Telegraph, 23 December 2006

Police have interviewed the Prime Minister, Tony Blair, in connection with an investigation into whether four businessmen were awarded honours in return for loans made to the Labour Party. It is the first time a sitting prime minister has been questioned in a corruption inquiry.
Financial Times, 15 December 2006

The Home Office is investigating allegations that John Guma-Komwiswa, a representative of Uganda's ruling party, secured a job in the immigration service and blocked the asylum applications of political opponents.
The Guardian, 18 December 2006

French judges investigating false allegations of corruption against Nicolas Sarkozy have questioned the Prime Minister, Dominique de Villepin. The investigation relates to documents that were sent to another judge in 2004 and appeared to show that Mr Sarkozy received illegal kick-backs.
The Independent, 22 December 2006

After a nine-year investigation the Moriarty tribunal has found that the late Charles Haughey, leader of Ireland's Fianna Fail party, "misappropriated" funds raised for a ministerial colleague's liver transplant, sold passports to an Arab sheikh, and accumulated the equivalent of euros 11m (£7.3m) in clandestine payments from wealthy businessmen.
The Guardian, 20 December 2006

Chen Che-nan, former chief of staff to the Taiwanese president, has been found guilty of accepting £111,000 in bribes from Liang Po-hsun, a construction company chairman to whom he promised help over legal charges.
Financial Times, 14 December 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.