Friday News Flip 29 July 2016


AMID the vast shadows of the 1MDB scandal, Malaysia gets a new anti-corruption czar.

THE Deputy Governor of Romania’s Central Bank has been detained and will face charges of “influence-peddling, illicitly receiving 1 million euros ($1.1 million)”

19 ZIMBABWEAN anti-corruption investigators were suspended from duty.

According to the state: the suspension was for corruption offences including fraud and abuse of office.

According to the investigators: it was retaliation for taking the government to court in order to secure pay arrears amounting to $1.5 million.

If the investigators are right, then it’s a downright cynical way for broke governments to get out of salary commitments- just fire the workers for corruption and you don’t have to pay a penny. Indeed you could even confiscate money and other assets from them to ‘compensate’ for their corruption.

IN another case of the investigator turning into the subject of the investigation, a senior South Korean prosecutor is under investigation by his colleagues for corruption revolving around $11 million in company share transactions.

MEXICO’S government passed a law explicitly providing for the liability ‘private entities’ for administrative offences (a distinct group of offences from criminal ones) as well as raising the penalties for such offences. Administrative offences include:-

 “bribery, illegal participation in administrative procedures, influence peddling, forgery of documents or information, obstruction of investigative powers, complicity, embezzlement, improper hiring of former government officials and violations committed in special cases, such as bribery carried out by candidates in elections, members of electoral campaign teams or leaders of public unions…”

IS the International Court of Justice about to wade into anti-corruption waters? Equatorial Guinea is currently seeking the court’s approval to challenge France’s prosecution of its First Vice-President (the son of the current President) as well as the attempt to seize his property in France. The charges stem from alleged movement of funds suspected of being misappropriated from Equatorial Guinea’s government and laundered in France. Equatorial Guinea is challenging France’s assertion of criminal jurisdiction over the offences as well as arguing that the First Vice-President is entitled to head-of-state immunity and that the property in France is protected by diplomatic immunity from criminal jurisdiction.


A JUDGE in the Australian state of Victoria slammed legislative drafters for creating poor quality criminal laws that endanger the fair administration of justice. He cites the example of the main penal law- the Victoria Crimes Act 1958- which has nearly tripled in size to 645 pages over 50 years with the addition of ‘verbose’ and ‘convoluted’ provisions.


THE woes of jailed Guatemalan ex-president Otto Perez Molina continue. He has been hit with additional money laundering charges stemming from the bribery scheme he and his vice president ran while he was in office.

THIS article takes an eye-opening look at the damage the misuse of shell companies does in India. It also describes how Indian banks collude with those behind this companies by performing sham KYC and due diligence procedures. The bankers also help manipulate transactions between shell companies’ accounts to make them look like viable companies and thus avert suspicion.