India investigation tips / Corruption in Asia / Macau casinos

Simon Shares Tips for Anti-Corruption Investigations in India (commentary).  Partner David Simon co-wrote an article that ran in The FCPA Report, “Ten Tips for Performing Effective Anti-Corruption Investigations in India,” where he collaborated with New Delhi, India-based attorney Sherbir Panag to share guidance for how U.S. companies can ensure they are complying with the law as they do business in India. 

Foley: https://www.foley.com/Simon-Shares-Tips-for-Anti-Corruption-Investigations-in-India-05-24-2017/

Corruption in Asia only getting worse: EY survey.  Despite anti-graft initiatives under way from China to India, the survey by EY found that ‘ethical standards are not improving’.

Lisa Pham/Live Mint: http://www.livemint.com/Companies/k7Jqt3qlAeBUNp3xqnOp2L/Corruption-in-Asia-only-getting-worse-EY-survey.html

China’s Anti-Corruption Drive Could Still Hurt Macau’s Economic Recovery, Market Analysts Warn (commentary).  "China’s anti-corruption drive, which kicked off in 2014, scared off many high-rollers who comprise Macau’s VIP segment with tightened controls on the junket industry that arranged their trips to China."

David Sheldon/Casino.org: https://www.casino.org/news/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery

Bhutan asset recovery / India digital currency / Australia real estate

Bhutan's National Assembly wants faster recovery of stolen assets.  Concluding its deliberation on the Anti-Corruption Commission (ACC) report 2016, the National Assembly told the Office of the Attorney General to complete the recovery of Nu 110 million (about US$1.7 million) stolen by 17 individuals who were convicted in court for corruption between 2009 and 2016.

Kuensel: http://www.kuenselonline.com/assembly-asks-oag-to-complete-corruption-restitution/

India court blocks digital currency initiative.  Any attempt by India to drop all physical currency in favor of a digital currency system on very short notice was blocked April 3 by a Supreme Court of India ruling.

Richard Giedroyc/NumisMaster: http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=28568

Is Australian Real Estate a Haven for Money Laundering? (opinion)  "Data from the Foreign Investment Review Board indicates that the amount of foreign money being pumped into [Australia's] local residential real estate increased more than threefold in just two years from 2012/13 to 2014/15."

Andrew Heaton/Sourceable: https://sourceable.net/australian-real-estate-haven-money-laundering/

Philippines-China partnership / Australia tax fraud / Sri Lanka electronic bidding

Philippines joins China to fight illegal gambling.  China and the Philippines have joined forces to tackle illegal gambling, part of Beijing's broader campaign to curb illicit capital outflows and a pledge by Manila to weed out unscrupulous operators from the country's booming gaming industry.

Neil Jerome Morales & Farah Master/Australian Financial Review: http://www.afr.com/news/world/asia/philippines-joins-china-to-fight-illegal-gambling-20170508-gw0cq2

Alleged $165m tax fraud unprecedented, says Australia police.  Nine people have been arrested and charged in connection with a sophisticated syndicate that allegedly stole $165m from the commonwealth, in what Australian police is calling one of the nation’s most significant white-collar organised crime operations.

Rhian Deutrom/The Australian: http://www.theaustralian.com.au/news/nation/son-of-tax-boss-arrested-for-fraud/news-story/642ff4bcbb98046329a6e9508e38d2b2

Sri Lanka govt urged to lift restrictions on electronic bidding.  Sri Lanka’s government has been urged to lift restrictions on electronic bidding, accept e-signatures and mandate online publication of procurement plans in an effort to introduce electronic procurement.

Economy Next: http://www.economynext.com/Sri_Lanka_govt_urged_to_lift_restrictions_on_electronic_bidding-3-7963.html

Pacific Anti-Corruption Updates (27 May 2017): Cook Islands, Fiji, Vanuatu

These updates are provided by the United Nations Office on Drugs and Crime (UNODC) Regional Anti-Corruption Project for Southeast Asia, and the joint UNODC - United Nations Development Programme (UNDP) Pacific Regional Anti-Corruption (UN-PRAC) Project, with support of the Australian Government.

If a link below does not work, please copy and paste the link into your browser’s address bar instead.

COOK ISLANDS:

Corruption at all levels (opinion).  "Complaints about government employees helping directly in the election campaign of at least one candidate shows that as far as politics in this country are concerned, nothing much has changed."

http://www.cookislandsnews.com/opinion/smoke-signals/item/64469-busy-section-of-road-odd-place-for-checkpoint

FIJI:

PAC reports for 2009-2013 passed by majority of MPs.  The contents of the report of the Standing Committee on Public Accounts on the Audits of Government Commercial Companies and Commercial Statutory Authorities 2009-2013 - Volume One was passed in Parliament yesterday.

http://fijivillage.com/news/PAC-reports-for-2009-2013-passed-by-majority-of-MPs-rs295k/

Trial date set for former university official. The trial date has been set for the former Vice – Chancellor of the Fiji national University (FNU) facing corruption charges for the following year.

http://www.fbc.com.fj/fiji/51030/trial-date-set-for-former-fnu-vc

Ex-policemen to file no case to answer.  Defence lawyers in the hearing of two former police officers charged with bribery informed court today that they would be filing submissions for a no case to answer.

http://www.fijitimes.com/story.aspx?id=401852

There is no need to protect people if they are not doing their job - Acting PM

Acting Prime Minister and Minister for Civil Service Aiyaz Sayed-Khaiyum has told parliament that there is no need to protect people if they are not doing their job.

http://fijivillage.com/news/There-is-no-need-to-protect-people-if-they-are-not-doing-their-job---Acting-PM-9k52rs/

VANUATU:

Commission of Inquiry into Misappropriation of Vanuatu's European Development Fund Launched. Minister of Justice, Ronald Warsal, has a Commission of Inquiry (CoI) into the alleged misappropriation of European Development Fund 2017-2020.

http://www.pireport.org/articles/2017/05/23/commission-inquiry-misappropriation-vanuatus-european-development-fund-launched

Thank you to the team at UN Pacific Regional Anti-Corruption Project for sharing these updates.  For more information, please contact:

Maria Adomeit, Regional Anti-Corruption Adviser, UNODC, maria.adomeit@unodc.org

Mihaela Stojkoska, Anti-Corruption Specialist - Pacific, UNDP, mihaela.stojkoska@undp.org

Luisa Senibulu, Governance Programme Associate, UNDP/UNODC, luisa.senibulu@undp.org

Maria Lee, Peace & Development Administrative Assistant, UNDP/UNODC, maria.lee@undp.org

Malaysia graft reporting / Technology boost / Ceiling prices

After promising reward, Malaysia anti-graft agency will now punish civil servants who fail to report graft.  Civil servants who did not alert the Malaysian Anti-Corruption Commission (MACC) of bribery attempts could face prosecution for the first-time ever under existing laws.

The Malay Mail: http://www.themalaymailonline.com/malaysia/article/after-promising-reward-macc-will-now-punish-civil-servants-who-fail-to-repo

How technology can boost government accountability in the developing world.  A conference in San Francisco, “Smart Government: Harnessing Technology for Public Good”, showcased technologies such as artificial intelligence and machine learning that can empower citizens, fight corruption, and transform governments.

Catherine Cheney/DevEx: https://www.devex.com/news/how-technology-can-boost-government-accountability-in-the-developing-world-90251

Ceiling Prices: A Second Best Method for Attacking Bid Rigging(commentary).  "In the face of collusion or cartel-like behavior by its suppliers, is government powerless in the short-run?...One solution is to do what Japan, Taiwan, the Philippines do: Set the maximum price it will pay for the good, service, or construction project it plans to procure and make it clear it will pay no more."

Rick Messick/Global Anticorruption Blog: https://globalanticorruptionblog.com/2017/05/17/bid-ceilings-a-second-best-method-for-attacking-bidding-rigging/

Korea investigative body / Indonesia graft-buster breakfast / Bangladesh capital flight

Setting up independent investigative body major sticking point in South Korea.  Heated debate is expected among the political parties over President Moon Jae-in's plan to set up an independent investigative body that will look into corruption of high-ranking public officials and their families.

Lee Kyung-min/The Korea Times: http://www.koreatimes.co.kr/www/nation/2017/05/251_229328.html

Terror, Threats, Acid Attacks: ‘Like Breakfast’ To Indonesia’s Graft-Busters.  Terror, intimidation and threats are to be expected if you choose to fight corruption in Indonesia, says the former head of the country’s graft-buster, Abraham Samad.

Ardi Wirdana/South China Morning Post: http://www.scmp.com/week-asia/politics/article/2093819/terror-threats-acid-attacks-breakfast-indonesias-graft-busters

Capital flight from Bangladesh (commentary).  "In its latest Annual Report, Global Financial Integrity (GFI), a Washington-based research outfit, provided an estimate of $6.0 to $9.0 billion that, it claims, was siphoned away from Bangladesh in 2014 via what it calls Illicit Financial Flow (IFF)."

Syed Ashraf Ali, retired Executive Director of Bangladesh Bank/The Financial Express: http://www.thefinancialexpress-bd.com/2017/05/13/70210/Talk-of-the-town:-Capital-flight-from-Bangladesh

Malaysia civil servants / Afghanistan security sector / Philippines transparency pledge

Nearly half of 414 individuals nabbed this year by Malaysian anti-graft body are civil servants. Civil servants made up about 46 per cent of the 414 people detained by the Malaysian Anti-Corruption Commission (MACC) for various offences so far this year, says MACC deputy chief commissioner (prevention) Datuk Shamshun Bahari Mohd Jamil.

Astro Awani: http://english.astroawani.com/malaysia-news/corruption-191-civil-servants-among-414-individuals-nabbed-macc-year-142901

Corruption Weakening Security Sector, Says Afghanistan Attorney General.  At a press conference, Afghanistan’s Attorney General Farid Hamidi said successes made by the enemy were due to corruption within the security structures.

TOLO News: http://www.tolonews.com/afghanistan/corruption-weakening-security-sector-says-attorney-general

Philippines vows transparency in $160-B infra push as debt, corruption fears persist.  The office of Philippine President Rodrigo Duterte assured the public that transparency will be a paramount consideration as the Duterte administration embarks on an ambitious P8-trillion plan to build infrastructure around the country.

Dharel Placido/ABS-CBN: http://news.abs-cbn.com/news/05/15/17/palace-vows-transparency-in-160-b-infra-push-as-debt-corruption-fears-persist

Philippines debt fears / Corruption risk survey / Korea ombudsman event

Build, build, build and corruption (editorial).  "Naysayers are creating a ruckus saying President Rodrigo Duterte's P8.4-trillion Dutertenomics of 'Build, build, build' will shackle the country in debt for generations to come."

Sun Star Davao: http://www.sunstar.com.ph/davao/opinion/2017/05/16/editorial-build-build-build-and-corruption-542310

Survey: Companies losing business to corruption risk.  More companies are choosing to cease business with certain partners, while others say they’ve lost business over the last year, because of corruption risk, finds a recent global anti-corruption survey.

Jaclyn Jaeger/Compliance Week: https://www.complianceweek.com/blogs/the-filing-cabinet/survey-companies-losing-business-to-corruption-risk-0

Korea anti-corruption body hosts global ombudsman events.  Officials at Asia's ombudsman organizations have been sharing their experiences and discussing ways to bolster cooperation in PyeongChang, Gangwon Province.

Yi Whan-woo/The Korea Times: https://www.koreatimes.co.kr/www/nation/2017/05/120_229433.html

Malaysia initiative / Singapore ISO / Australia donor plea

Malaysia launches new anti corruption initiative. Dzulkifli Ahmad, head of the Malaysian Anti-Corruption Commission (MACC), said MACC has launched the Anti-Corruption Revolution Movement (Gerah) a new initiative to enhance the country’s fight against corruption by creating major and drastic changes in Malaysian people, ensuring they see corruption as their number one enemy.

Vietnam Plus: http://en.vietnamplus.vn/malaysia-launches-new-anti-corruption-initiative/111352.vnp

Singapore Adopts ISO Standard on Anti-Bribery Management Systems.  Singapore launched the Singapore Standard (SS) ISO 37001 on Anti-bribery management systems on 12 April 2017, following a public consultation from February to March 2016 on the adoption of the International Organisation for Standardization (ISO)'s new set of voluntary standards (designated as ISO 37001) for anti-bribery compliance.

Baker McKenzie/Lexology: http://www.lexology.com/library/detail.aspx?g=c7967097-c5b6-406d-a270-71d0de5a7434

Donor urges Chinese Aussies to help hunt corruption suspects.  Sydney businessman Huang ­Xiangmo, a prominent political donor who previously paid a legal bill for Labor senator Sam ­Dastyari, has urged Chinese-­Australians to help the superpower hunt down a prominent corruption ­suspect.

Primrose Riordan/The Australian: http://www.theaustralian.com.au/national-affairs/foreign-affairs/donor-urges-chinese-aussies-to-help-hunt-corruption-suspects/news-story/4ef8033b3131713196fdb7db3c97e90d

ESCAP survey / Bangladesh barrier / New U4 publication

Quality of governance affects development outcomes, reveals UN ESCAP survey.  The survey finds that better governance and effective fiscal management in Asia-Pacific not only can improve long-term economic prospects, but also facilitate in grappling with social and environmental concerns.

Daily Mirror: http://www.dailymirror.lk/article/Quality-of-governance-affects-development-outcomes-reveals-UN-ESCAP-survey-128621.html

Bangladesh's top graft-buster says bureaucracy is biggest barrier.  Anti-corruption Commission Chief Iqbal Mahmud has identified the bureaucracy as the 'biggest problem' in the battle against graft.

bdnews24: http://bdnews24.com/bangladesh/2017/05/09/bangladesh-s-top-graft-buster-says-bureaucracy-is-biggest-barrier

Publication available: Bespoke Monitoring and Evaluation of Anti-Corruption Agencies (U4 Anti-Corruption Resource Centre at Chr. Michelsen Institute).  This U4 Brief, which draws largely on the 2011 U4 Issue How to Monitor and Evaluate Anti-Corruption Agencies: Guidelines for Agencies, Donors, and Evaluators (Johnsøn et al. 2011), provides reflection and guidance on how to fairly measure the results achieved by anti-corruption agencies (ACAs) and how to learn from and act on these findings.

Sofie Arjon Schütte, PhD, Senior Advisor, U4 Anti-Corruption Resource Centre CMI (Chr. Michelsen Institute): http://www.u4.no/publications/bespoke-monitoring-and-evaluation-of-anti-corruption-agencies/

Nigeria’s Whistleblowing Policy: A Good Start, But Not Enough

On December 21, 2016, Nigeria’s Federal Ministry of Finance approved a whistleblowing program as part of the Nigerian government’s continued efforts to fight corruption. Key features of the program include the launch of an online portal for submission of tips and the establishment of a reward for “information that directly leads to the voluntary return of stolen or concealed public funds or assets” (the reward is 2.5 to 5% of the amount recovered, with the percentage decreasing as the amounts recovered increases). As over $176 million in stolen funds was recovered within the first two months of the program, the whistleblowing policy appears to be an overnight success story. Nevertheless, although stolen funds are indeed being recovered, the existing policy does not do enough to offset the risks that whistleblowers face when they come forward with information, and this deficiency may limit the long-term effectiveness of the program. In particular, there are three aspects of the program that the government ought to reform in order to encourage individuals to assume the risks associated with becoming a whistleblower, and consequently to ensure the policy’s continued success.

Read the full post: https://globalanticorruptionblog.com/2017/05/19/nigerias-whistleblowing-policy-a-good-start-but-not-enough/

Ethical Alliance Daily News

United States: ‘Wolf of Wall Street’ Producer in Talks to Settle 1MDB Suit
May 19, 2017 08:00 pm

The producer of “The Wolf of Wall Street” is in talks with the U.S. Justice Department to settle a lawsuit alleging the movie was funded by money siphoned from a Malaysian state investment fund, 1Malaysia Development Bhd (1MDB). Lawyers for...

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Brazil: Brazil’s stock market plunges after corruption claims
May 19, 2017 07:30 pm

Brazil’s Bovespa stock market was briefly halted as investors reacted to corruption allegations against Brazilian President Michel Temer. Stocks plunged more than 10% at the start of trading, prompting circuit breakers to kick in and halt dealings. President Temer was...

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Asia: Soccer: New head of integrity asks AFC to probe Lai charges
May 19, 2017 07:00 pm

Newly appointed independent Head of Integrity Mohammad Ali Al Kamali has asked the Asian Football Confederation (AFC) to probe circumstances surrounding the prosecution of suspended official Richard Lai, the governing body said on Wednesday. “The allegations contained in Richard Lai’s...

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Malta: Transparency International warns: Corruption scandals cast shadow on Malta’s EU presidency’
May 19, 2017 06:30 pm

Corruption scandals have engulfed the government and are now casting a shadow over the island’s EU presidency, Transparency International has warned. The compilers of the Corruption Perception Index told the Times of Malta yesterday they were following the political developments...

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Tanzania: Tanzania freezes assets of anti-graft official over suspected corruption
May 19, 2017 06:00 pm

Tanzania’s anti-graft watchdog said on Thursday it had frozen the assets of its chief accountant and planned to charge him with corruption, part of an aggressive anti-graft drive in which thousands of officials have already lost their jobs. President John...

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China: Former senior Jiangsu official sentenced to four years for bribery, illegal foreign exchange purchase
May 19, 2017 05:30 pm

Zhao Shaolin, a former provincial-level official in east China’s Jiangsu Province, was sentenced by a court in Zhejiang Province to four years in prison Thursday for graft and illegally purchasing foreign exchange. Zhao, a former member of the standing committee...

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Transparency International - Corruption in the news this week

Corruption in the news this week Spain in focus Spain: Spain’s never-ending corruption problem Politico (18 May)Spanish institutions have failed to prevent graft. Its judges are trying to clean up the mess.

Spain: Spain urged to deal with systemic corruption by international watchdog The Olive Press (19 May, TI mention)Transparency International have slammed Spain for its ‘systemic corruption’.

Not really understanding your job Tajikistan: Bunker found with bags of money, gold and 6 cars belonging to employee of anti-corruption agency in Tajikistan AKI Press (18 May)

Tanzania: Tanzania freezes assets of anti-graft official over suspected corruption Reuters (18 May)

Other news China: China’s new anti-corruption body raises worrying questions about the rule of law The Conversation (17 May)

Cyprus: New life in Limassol: If you can’t launder Russian money, then launder the Russian Bloomberg (15 May)

Morocco: Thousands of Moroccans rally against corruption Reuters (15 May)

Nigeria: Boko Haram is growing stronger in Nigeria thanks to corruption in the military Newsweek (19 May, TI mention)

Blogs and opinion Brazil: Brazil’s corruption scandals may be the best thing to happen to Latin America Miami Herald (19 May)

Transparency International - Daily Corruption News - 17 May 2017

Daily Corruption News
17 May 2017

Today's top story

Australia: Miners BHP Billiton, Woodside, Orica warn investments at risk from proposed foreign bribery laws
Sydney Morning Herald (TI mention)
Mining giants BHP Billiton, Woodside and Orica have warned the federal government against going too far in strengthening Australia's foreign bribery laws, saying it could put local companies at risk and prevent them from taking up new investments overseas.

Other news

Global: Corruption Is Costly — and Pervasive
CFO

Dominican Republic: Bribery scandal met with near-silence in Dominican Republic
Associated Press

Malaysia: Corruption: 191 civil servants among 414 individuals nabbed by MACC this year
Astro Awani

Malta: Transparency International warns: Corruption scandals cast shadow on Malta’s EU presidency’
Times of Malta (TI mention)

Russia: Giant farms linked to Russia’s political elite fuel fears for smallholders
Thomson Reuters (TI mention)

USA: 'Pay Trump bribes here' projected on Trump hotel
USA Today

USA: Democrat proposes SWAMP Act to make Trump reimburse travel costs
Washington Examiner

Blogs and opinion

India: It's a pity Modi government's war against corruption is only for opposition parties
Daily O

USA: The Criminal President?
New York Times

USA: Why Is Congress proposing to increase Customs and Border Protection corruption?
The Hill

News from Transparency International

Public consultation: Your ideas welcome: help us set higher standards in state-owned companies

Ethical Alliance Daily News - 17 May 2017

Brazil: Brazil police launch new agribusiness inspection probes
May 17, 2017 08:00 pm

One of the two newly launched probes involves an alleged scheme to delay or cancel fines in in return for some 3 million reais ($965,000) in bribes between 2010 and 2016, police said. Meatpacker Minerva is among the companies targeted...

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Australia: Miners BHP Billiton, Woodside, Orica warn investments at risk from proposed foreign bribery laws
May 17, 2017 07:30 pm

Mining giants BHP Billiton, Woodside and Orica have warned the federal government against going too far in strengthening Australia’s foreign bribery laws, saying it could put local companies at risk and prevent them from taking up new investments overseas. In submissions as...

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Hong Kong: Hong Kong leader Leung Chun-ying admits intervening in probe into HK$50 million payment
May 17, 2017 07:00 pm

Hong Kong’s leader on Tuesday denied any wrongdoing as he admitted his behind-the-scenes intervention in a legislative investigation into his past business dealings, landing himself in a new political storm less than two months before he steps down. Chief Executive...

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Peru: Peru’s Grana y Montero shares drop 10 pct on charges in bribery case
May 17, 2017 06:30 pm

Shares in Peru’s largest construction company Grana y Montero plunged more than 10 percent on Tuesday after prosecutors filed charges against the firm and a former top executive in a corruption case linked to Brazilian builder Odebrecht. Prosecutors presented the...

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World: Kenya, China sign treaties to fight corruption, recover stolen public assets
May 17, 2017 06:00 pm

Kenya has signed three major treaties with China signifying commitment in the fight against corruption. They are the Treaty on Extradition, Mutual Legal Assistance and Transfer of Prisoners. Attorney General Githu Muigai signed the agreements on behalf of the Kenyan...

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India: Government to strengthen agency under GST to check tax evasion
May 17, 2017 05:30 pm

Ahead of the planned GST rollout from July 1, the government is strengthening the body responsible for detecting tax evasion and will set up two new agencies, including one for business intelligence and analytics. With the goods and service tax...

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