UK: Mishcon´s Culture vs Corruption Diary

Welcome to the March 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 has happened 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.

UNITED KINGDOM

Britain's anti-corruption laws are outdated and need to be reformed, according to the director of the SFO.
Financial Times, 26 February 2007

The SFO has opened a formal investigation into possible breaches of the Iraq oil-for-food sanctions. A United Nations report lists more than 2,200 companies from 40 countries that may have been linked to bribery or "kickbacks'' in Iraq in the 1990s.

The SFO has recommended that the Metropolitan Police open an investigation into whether George Galloway broke UN sanctions by receiving "oil money" from Saddam Hussein.
The Guardian, 14 February 2007

Kyle Foggo, a former Central Intelligence Agency official, has been charged in connection with an alleged conspiracy involving Brent Wilkes, a defence contractor. Mr Foggo is alleged to have helped Mr Wilkes win a supply contract for bottled water. Mr Wilkes has also been charged with allegedly bribing the former Californian congressman, Randy Cunningham.
Financial Times, 15 February 2007

Vetco International, a UK oil and gas company, has been fined $26m by the US Department of Justice, after the company admitted paying $2.1m in bribes to Nigerian officials in exchange for preferential treatment by customs officials.
Financial Times, 7 February 2007

Johnson & Johnson, the US healthcare group, has said that it has notified US legal authorities and securities regulators that it has found "improper payments in the connection of medical devices in two small-market countries".

European anti-fraud investigators are investigating the UK Independence Party (UKIP) in connection with alleged staff salary irregularities. In the UK the Electoral Commission has asked UKIP to repay £360,000 of "impermissible'' donations because the donor was not on the electoral register when he gave the money.
The Daily Telegraph, 26 February 2007

The European Anti-Fraud Office has said that the European Union is being defrauded of more than £2m every day.
Daily Mail, 14 February 2007

Siim Kallas, the European Union anti-fraud commissioner, has said that he would like EU judges and auditors to declare second jobs, investments, property and hospitality received.
Financial Times, 13 February 2007

Prosecutors in Sweden are investigating Saab in connection with allegations of bribery relating to the company's dealings in the Czech Republic.
Financial Times, Tuesday 20 February 2007

The president of BG Italy and two former managers have been arrested in connection with an investigation into alleged corruption.

The European Bank for Reconstruction and Development has announced that it has blacklisted Lahmeyer, a German engineering consultancy, after the company was found guilty of bribery on a World Bank project in Lesotho.
Financial Times, 26 February 2007

China is to set up an agency to crack down on corruption following a number of cases involving high-level officials and wealthy business people.
Financial Times, 14 February 2007

The High Court in London has ruled that Donegal International, an investment fund, has the right to sue the state of Zambia for an unpaid debt it bought at a heavy discount. Zambia alleged that corrupt civil servants had fixed the sale. The judge has frozen Zambian assets in the UK pending a future hearing.
Financial Times, 15 February 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.

www.mishcon.com