UK: Culture vs Corruption Diary - September 2006

Welcome to the September 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 Horseracing Regulatory Board has charged four jockeys, including Robert Winston, a former bookmaker and four other unlicensed individuals in connection with an investigation into alleged corruption.
The Daily Telegraph, 15 August 2006

A provisional date of 20 October 2006 has been set for the second reading of the Corruption Bill in the House of Commons. The Bill proposes a number of offences of corruption and introduces duties with regard to reporting public sector corruption and the supervision of subsidiary companies.

A provisional date of 20 October 2006 has been set for the second reading of The Honours (Prevention of Corruption) Bill in the House of Commons. The Private Members' Bill had its first reading in the House of Commons on 13 June 2006.

A provisional date of 20 October 2006 has been set for the second reading in the House of Commons of the International Development (Anti-Corruption Audit) Bill. The Bill proposes amendments to section 7 of the International Development Act 2002.

Approximately 100 current and former members of staff at Philips, the Dutch electronics group, are under investigation in Hamburg in connection with alleged corruption.
Financial Times, 24 August 20

Nigeria's Economic and Financial Crimes Unit has promised to name the leaders, past and present, which it claims have stolen up to £212bn in oil revenues from the treasury.
The Independent, 14 August 2006

The Serious Fraud Office is investigating KBR, a subsidiary of Halliburton, in connection with the company's alleged involvement in a plan to pay more than $170m of bribes to win multi-billion dollar contracts from a Nigerian gas plant.
Financial Times, 8 August 2006

The Indian government has shelved plans to amend new anti-corruption legislation. Civil groups feared that proposed amendments to the Right to Information Act would restrict access to government records.
Financial Times, 21 August 2006

Israeli police have questioned the President, Moshe Katsav, in connection with allegations of sexual harassment and corruption. Mr Katsav is alleged to have taken money in exchange for granting pardons.
The Guardian, 24 August 2006

The Israeli Prime Minister, Ehud Olmert, is to be investigated in connection with a property deal. Mr Olmert was allegedly given a large discount on a flat in Jerusalem in exchange for manipulating the city's planning laws.
The Daily Telegraph, 18 August 2006

Bob Ney, a Republican Congressman, has stepped down from the US November election ballot. Mr Ney is under investigation in connection with allegations of corruption involving political lobbyists.
The Independent, 15 August 2006

The former dictator of Chile, Augusto Pinochet, has been stripped of his immunity from prosecution. The move clears the way for General Pinochet to stand trial for allegedly embezzling $2m of public money.
The Daily Telegraph, 19 August 2006

Brazil's Parliamentary Commission of Inquiry has called for 72 legislators to be expelled from congress after the panel found that they had received money and gifts in a complex fraud.
The Independent, 12 August 2006

The Indonesian authorities are investigating WSP International in connection with allegations of corruption. The British contractor is accused of making illegal payments of more than $350,000 to government officials involved in two World Bank projects.
Financial Times, 17 August 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.