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US corruption probe nets dozens

Map

Two mayors, rabbis and politicians are among some 30 people arrested in a major corruption and money-laundering investigation, say US authorities.

Hoboken Mayor Peter Cammarano, Secaucus Mayor Dennis Elwell, and Assemblyman Daniel Van Pelt are among those said to have been arrested in New Jersey.

Federal prosecutors said several rabbis were also detained in the states of New York and New Jersey.

Newark Mayor Cory Booker said it had been "an unbelievable morning so far".

Cars were said to be backed up four deep with suspects outside the FBI’s office in Newark, New Jersey’s largest city.

A news conference is scheduled for later on Thursday. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

New Jersey Corruption Arrests: Two Mayors Taken Into Custody

NEWARK, N.J. (AP) — FBI agents are sweeping across northern New Jersey Thursday, making arrests in what reportedly is described as a major corruption probe.

WNBC-TV in New York reported and showed images of the mayors of Hoboken and Secaucu…

Venezuela ‘fuelling drugs trade’

Venezuelan drug officials open bags of cocaine (file image)

Corruption in Venezuela’s government and military is allowing drug trafficking into the US to flourish, a US congressional report has said.

Venezuela provides "a safe haven" for Colombian armed groups operating along its border, the report says.

Venezuelan President Hugo Chavez has dismissed the report’s findings, labelling it "a new lie" from the US.

The US says the annual flow of Colombian cocaine through Venezuela quadrupled between 2004 and 2007.

The report, by the Government Accountability Office, which is an arm of Congress, says corruption in Venezuela has extended a "lifeline" to Colombian rebels who profit through the drugs trade using sanctuaries along the border.

‘Permissive’

The report says that the situation risked reversing gains made in stemming the flow of drugs from Colombia.

"If illegal armed groups continue to find safe haven in Venezuela and receive support from Venezuela, the permissive atmosphere and lack of co-operation will likely adversely affect the security gains made in Colombia since 2000," the report said.

According to researchers who prepared the report, visiting both Venezuela and Colombia earlier this year, Venezuelan officials were bribed to facilitate Colombian cocaine shipments.

Mr Chavez, speaking on Friday after a copy of the report was leaked, said the US was "the top drug trafficking country on the entire planet".

Co-operation between Venezuelan and American drug enforcement agencies has declined sharply since 2005, when Mr Chavez accused US officials of spying, a charge they denied.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Leslie Pratch, Ph.D.: Culture, Corruption, and the Cost of Capital

Corrupt societies have a higher economic cost of capital. That’s another way to say that higher integrity countries are wealthier.

Fujimori convicted of corruption

Alberto Fujimori in a file photo from 2008

The former President of Peru, Alberto Fujimori, has been given a seven-and-a-half-year jail term for corruption.

The 70-year-old was convicted by Peru’s Supreme Court of giving $15m (£9.3m) in state funds to his spy chief Vladimiro Montesinos.

Fujimori admitted making the payment, but said he later repaid the money.

The sentence is the third handed down against Fujimori, who ruled Peru from 1990 to 2000, since he returned from exile in late 2007 to face charges.

Last April, he was sentenced to 25 years in jail for ordering killings and kidnappings by the security forces.

Fujimori was already serving a six-year term after being found guilty in 2007 on separate charges of abuse of power.

The prosecution claimed that Fujimori illegally channelled huge sums to Vladimiro Montesinos.

The multi-million dollar payment was allegedly made just two months before corruption accusations in late 2000 abruptly ended Fujimori’s 10 years in power.

Montesinos, who is currently in prison convicted of several charges including corruption and embezzlement, was at the centre of the scandal which erupted after videos emerged showing him bribing opposition politicians and media magnates.

Fujimori had told the court the payment was not illegal because he had later reimbursed the state.

"I express my partial and relative conformity with the charges… I only acknowledge the facts, I don’t accept the criminal responsibility, the punishment or the civil reparations," he said. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Chinese president’s son linked to multi-million pound African corruption probe

Hu Haifeng, a Chinese businessman and the eldest son of Chinese President Hu Jintao, has been linked to a multi-million pound African corruption probe and faces questioning in connection with the investigation.
Haifeng was the president of the state-owned Chinese company Nuctech until last year, from where three people have been arrested on charges of fraud, [...]

Corruption drive

former head ofthe Kazakh nuclear agency Mukhtar Dzhakishev

A number of senior government officials have fallen to an anti-corruption drive in Kazakhstan, but some are questioning the motives behind the latest campaign, says the BBC’s Central Asia correspondent Rayhan Demytrie.

The government has introduced a series of anti-corruption measures, some more gimmicky than others.

The latest is for civil servants to wear badges stating: "I am against corruption."

"We thoroughly studied anti-corruption methods used in other countries before coming up with these suggestions," says Mirbulat Kunbayev, a member of the anti-corruption council of the ruling Nur Otan party.

"I understand that it will not eliminate corruption, but I think anyone wearing the badge will think twice before asking for a bribe. This method has been successfully used in Malaysia."

Other suggestions have been to hold a competition for the best anti-corruption song and introduce life sentences for government employees found guilty of stealing "particularly large sums" from state funds.

‘Ten slashing punches’

Other measures are much more serious.

"The media misinterpreted us," says Mr Kunbayev, who is unhappy that only these novelties were singled out from the anti-corruption drive.

"The country has been hit badly by the global economic crisis, and this big scale anti-corruption war could be one of the means to take the public’s attention away from real problems"

Andrei Chebotaryov, political analyst

"We suggested a whole list of measures aimed at creating a powerful anti-corruption system."

In April, President Nursultan Nazarbayev suggested paying cash rewards to ordinary citizens for turning in any corrupt state officials they encounter.

Last year the president said corruption in the country had to be fought with "10 slashing punches". He ordered the creation of a special programme aimed at eliminating fraud and dismissing top government officials implicated in corruption.

Some have not had to wait too long.

According to official figures, close to 1,000 corruption investigations have been opened this year, many of them against government employees.

Transparency plea

In a recent survey conducted by the International Republican Institute – a US-funded organisation that promotes good governance – Kazakhs consider traffic police, the customs service and the general prosecutors office as the country’s most corrupt institutions.

But the current wave of sackings and arrests over allegations of corruption mainly involves high-ranking officials.

In early June, President Nazarbayev fired his ex-Defence Minister Danial Akhmetov, a long time loyalist and former prime minister.

No official reason was giving for his dismissal.

Just weeks before, Mr Akhmetov’s deputy Kazhimurat Mayermanov was arrested on corruption charges.

Traffic police in Almaty, Kazakhstan

A statement from the National Security Committee (KNB) said that Mr Mayermanov and several other defence ministry officials were accused of purchasing defective military equipment from Israel and misappropriating $82m from the defence budget.

"Ahmetov’s dismissal was somehow expected ever since the whole corruption scandal at the defence ministry began. It was just a matter of time," says Daulet Zhumabekov, an ex-soldier who has battled corruption at the defence ministry.

In May Mukhtar Dzhakishev, the head of the state-owned nuclear firm "Kazatomprom", was arrested along with a number of his deputies.

The authorities say Mr Dzhakishev appropriated 60% of Kazakhstan’s uranium deposits, worth billions of dollars, and sold them to foreign firms.

His arrest caused a stir in Kazakh business circles, prompting a group of businessmen to write an open letter to President Nazarbayev urging transparency in Mr Dzhakishev’s criminal case.

The businessmen said a secret investigation would tarnish Kazakhstan’s international image and deter potential investors.

But the authorities are releasing little information about the case. Mr Dzhakishev’s wife and family are not allowed to visit him and lawyers have been denied access.

"Dzhakishev was known as an honest and talented manager," says Sergey Smirnov, an energy expert from the journal Expert-Kazakhstan.

"Any Kazatomprom contract has to be approved by the government and the ministry of energy and natural resources. Technically it is impossible that Dzhakishev could have appropriated 60% of uranium deposits," says Mr Smirnov.

During his 10-year tenure Mr Dzhakishev led Kazatomptom to become one of the world’s top uranium producers.

There is also an ongoing case against former Environment Minister Nurlan Iskakov and two of his deputies, who are charged with financial manipulation and embezzling more than $6m from the state budget.

Power struggle

In a recent interview with Interfax-Kazakhstan news agency, the head of Kazakh national security Amangeldi Shabdarbayev said that there was no political implication in the cases against top government officials.

"Every case is a result of a thorough investigation by the general prosecutor’s office and other institutions," Interfax-Kazakhstan quoted Mr Shabdarbiyev as saying.

But some are questioning the timing of the latest anti-corruption drive.

"The country has been hit badly by the global economic crisis, and this big scale anti-corruption war could be one of the means to take the public’s attention away from real problems," says political analyst Andrei Chebotaryov.

Others suggest the anti-corruption drive is part of a bigger power struggle and an excuse to purge unfavourable figures from Kazakhstan’s ruling elite.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Patricia DeGennaro: Afghanistan: The Real Exit Strategy – Free and Fair Elections

Karzai’s approval rating has dropped 60% since he’s taken office. Afghans are tired of the corruption and lack of leadership. They loath the warlords who, quite frankly, belong in the Hague not in his cabinet.

McConnell Distances Himself From Scandal-Ridden Ensign

Sen. John Ensign (R-Nev.) is mired in a sex and corruption scandal that, in his own understated terminology, has been “not good.” Having been caught paying hush money through his parents to his former mistress, the wife of a former staffer, he…

Fujimori corruption trial opens

Alberto Fujimori in a file photo from 2008

The former president of Peru, Alberto Fujimori, found guilty of human rights abuses in April, is on trial again to face charges of corruption.

Mr Fujimori, who was president from 1990 to 2000, is accused of using state funds to pay his intelligence chief Vladimiro Montesinos $15m (£9.3m).

Mr Fujimori’s lawyer said his client was innocent of the charges.

In April, Mr Fujimori was sentenced to 25 years in jail for ordering killings and kidnappings by the security forces.

The prosecution alleges that the former president illegally channelled huge sums to his spy chief, Vladimiro Montesinos.

The multi-million dollar payment was allegedly made just two months before corruption accusations in late 2000 abruptly ended Fujimori’s 10 years in power.

‘Not guilty’

Montesinos, who is currently in prison convicted of several charges including corruption and embezzlement, was at the centre of the scandal which erupted after videos emerged showing him bribing opposition politicians and media magnates.

Mr Fujimori’s lawyer said his client would plead not guilty to corruption.

"Fujimori is innocent. We are going to fight for his acquittal," Cesar Nakazaki said.

Several former ministers in Mr Fujimori’s administration are expected to testify.

The prosecution is seeking an eight-year sentence and a fine of some $660,000.

Mr Fujimori was sentenced to 25 years in April after being found guilty of authorising an army death squad that killed 25 people in the early 1990s. He was already serving a six-year term after being found guilty in 2007 on separate charges of abuse of power.

The former president, who his supporters credit with crushing left-wing guerrillas during his time in office, still has residual support in Peru, says the BBC’s Dan Collyns in Lima.

Some opinion polls suggest his daughter, Keiko, is a frontrunner for the presidential elections due in 2011.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Jake Whitney: Betraying the Tribe: Michela Wrong and the Foundations of African Corruption

Wrong’s new book, It’s Our Turn To Eat: The Story of a Kenyan Whistleblower, confronts the question of African corruption head on and finds there’s plenty of blame to go around.