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Corruption stories making the news this month:


Election violence in Nicaragua

By Michael Sidwell

“At least two people have been killed and six others injured in Nicaragua in post-election violence,” reports the BBC, citing unconfirmed reports.


Associated Press (AP) writes that the Constitutionalist Liberal Party, Nicaragua's main opposition party, labelled the nationwide municipal elections “fraudulent” and indicated that it “will ask either the OAS [Organization of American States], the United Nations or the European Union to review tally sheets.”

Bloomberg reports that preliminary electoral board results presented on 10 November indicate that “Sandinista mayors and deputy mayors hold a lead or have won outright in 94 of 146 townships.”

Etica y Transparencia (Ethics and Transparency), the Transparency International chapter in Nicaragua, said it had “recorded irregularities in 32 percent of the polling places it monitored,” reports Agence France Presse (AFP), noting that the group was “among many would-be election observers the government had refused to accredit.”

AP reports that “OAS Secretary-General Jose Miguel Insulza expressed concern over the fraud allegations and urged Nicaraguans to resolve the controversy through dialogue. He pointedly noted that the presence of OAS observers would have been helpful in resolving such disputes.”

On 10 November, The US State Department “urged Nicaragua to ensure that municipal voting results reflect the will of the people, after noting that conditions were not conducive to fair elections,” according to AFP.

For his part, Nicaraguan President Daniel Ortega has said he rejected the observers "because they are financed by outside powers" and “dismissed fraud allegations,” writes AP.

To read Etica y Transparencia’s statement on the situation please click here (English) or here (Spanish).

Former Taiwanese president arrested

By Michael Sidwell

Former Taiwanese president Chen Shui-bian was formally arrested on 12 November for “suspected corruption, bribery, forgery, money laundering and illegal possession of state assets,” reports the Guardian.


The Taipei District Court has said that there are “enough facts to believe there was buried evidence, fabrication, altered evidence and conspiracy among suspects or witnesses," writes Reuters.

Prosecutors allege that Mr Chen embezzled “T$14.8m ($450,000, €359,000, £292,000) from the government,” writes the Financial Times. Asia Times adds that: “Investigators also suspect the former first family of money laundering - transferring millions of US dollars to overseas bank accounts. His wife, son, daughter-in-law and brother-in-law have been named as defendants in the money laundering case.”

In response to the allegations, “Mr. Chen has suggested that prosecutors are focusing on him to win favor from Beijing,” reports The New York Times.

Corruption allegations, recalls Associated Press, “seriously undermined Chen's authority during his last two years in office, and provoked mass demonstrations demanding his resignation.” According to Asia Times, “Chen is the first former or incumbent Taiwanese president to be detained.” However, the same article notes that he is not the “first to be accused of misusing special discretionary funds set aside for political office holders. Current President Ma Ying-jeou was charged with embezzlement, but acquitted before being elected in March.”

Reuters warns that Chen's arrest could “stoke political tensions” in Taiwan.

OECD critical of Britain’s inaction to tackle foreign bribery

By Lydie Gerboin

On 16 October, the OECD's Working Group on Bribery severely criticised the UK’s “failure to bring its anti-bribery laws into line with its international obligations under the OECD Anti-Bribery Convention and urged the rapid introduction of new legislation.”


In a report following an extra review of the UK’s implementation of its obligations under the Convention, the OECD said it was “disappointed and seriously concerned with the unsatisfactory implementation of the convention by the UK,” reports the Guardian.

“We need an adequate law and we need it immediately,” said Chairman of the Working Group on Bribery and TI Integrity Award winner Mark Pieth at the press conference (International Herald Tribune).

“There have been only two cases in the UK since the 1997 OECD Anti-Bribery Convention came into force. In contrast, there have been 103 cases in the USA, 43 in Germany, and 19 in France,” noted Laurence Cockcroft, Chairman of Transparency International UK (The Telegraph). “The facts are plain to see, more prosecutions of companies and individuals are needed to send the right message to business.”

According to the Guardian, Jack Straw, British Justice Secretary, said the government welcomes the report and will now “carefully consider its recommendations, alongside the Law Commission's imminent proposals on bribery law reform.” He also noted that “the UK is fully committed to combating foreign bribery, which hurts honest companies and raises the costs of doing business.”

However, David Leigh, investigative editor at the Guardian, cautioned that unless the government makes the commitment to legislate with a concrete timeline, “all the government's words will be seen as worthless by anti-corruption campaigners.”

The Working Group also warned that “uncertainty over the UK’s legislative framework may trigger a need for increased due diligence over UK companies by their commercial partners or multilateral development banks” (OECD).

While the OECD group has “no formal powers to impose sanctions against Britain or force companies to change their behaviour […] its criticisms will be widely noticed worldwide and could have both a reputational and practical impact on British multinationals,” reports the Financial Times.

According to the same article though, the British employee’s organisation CBI rejected the idea that “foreign multinationals and institutions dealing with British companies would have to take extra care – and spend more cash- to avoid becoming entangled in corruption.”

Links

- To read the full OECD report please click here.

- TI UK’s statement on the report.

- Transparency Watch interview with David Leigh.