{"id":7029,"date":"2020-10-13T09:39:47","date_gmt":"2020-10-13T09:39:47","guid":{"rendered":"https:\/\/crigroup.com\/?p=7029"},"modified":"2023-08-16T07:04:53","modified_gmt":"2023-08-16T07:04:53","slug":"top-10-bribery-corruption-stories","status":"publish","type":"page","link":"https:\/\/crigroup.com\/ar\/top-10-bribery-corruption-stories\/","title":{"rendered":"Top 10 Bribery & Corruption Stories of 2020"},"content":{"rendered":"
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Even with much of the world under partial lockdown during the COVID-19 pandemic, there\u2019s been no shortage of bribery and corruption cases through the first half of 2020. Each of these stories makes it clear that organizations must have proper controls in place to prevent bribery and corruption. ISO 37001 Anti-Bribery Management Systems<\/a> standard provides a comprehensive approach to mitigating bribery and corruption risk.<\/span><\/p>\n

Organizations of all sizes and industries should take steps now to ensure that they don\u2019t end up on a future list of top bribery and corruption scandals. Due to last year’s “Top 10 Bribery and Corruption Cases of 2019”<\/a> successful article we decided to compile a 2020 list too. In no particular order, ABAC\u2122 Center of Excellence<\/a> collated the top bribery and corruption stories we\u2019ve seen so far in 2020.<\/span><\/p>\n

In no particular order, here are 10 of the top bribery and corruption stories we\u2019ve seen so far in 2020.<\/span><\/p>\n

#10. Airbus <\/strong><\/span><\/h3>\n

In February, French-based Airbus agreed to pay a record $4 billion in fines for alleged bribery and corruption spanning at least 15 years. The company reached a plea bargain with prosecutors in Britain, France and the United States. According to prosecution documents, Airbus used a global network of agents or middlemen for corrupt transactions, included payouts disguised as commissions to push airplane sales.<\/span><\/p>\n

\u201cFallout from the Airbus bribery scandal reverberated around the world on Monday as the head of one of its top buyers temporarily stood down and investigations were launched in countries aggrieved at being dragged into the increasingly political row.\u201d (Reuters, 2020<\/a>)<\/span><\/p>\n

#9. <\/strong>Novartis<\/strong><\/span><\/h3>\n

While the investigation into suspected corruption at Novartis began seven years ago, it appears that 2020 is the year the company can finally close this damaging chapter in its history. The resolution comes at a steep cost. The Swiss-based pharmaceutical company will pay a staggering $1.3 billion in a settlement for kickbacks, bribery and price-fixing.<\/span><\/p>\n

\u201cThe latest settlements cover two different cases. In the first, federal prosecutors claim Novartis used \u2018tens of thousands of\u2019 speaker programs and events \u2014 some entailing exorbitant meals \u2014 as disguise to provide bribes to doctors. The goal, according to prosecutors, was to encourage doctors to prescribe its drugs, including Lotrel, Valturna, Starlix, Tekturna, Tekamlo, Diovan and Exforge.\u201d (Fierce Pharma, 2020<\/a>)<\/span><\/p>\n

#8. <\/strong>Ohio House Speaker Larry Householder<\/strong><\/span><\/h3>\n

While political corruption is nothing new, his constituents were nevertheless shocked when Ohio House Speaker Larry Householder was arrested, along with four alleged co-conspirators, as part of a $60 million racketeering and bribery investigation. The alleged scheme is being described as one of the biggest public corruption cases in Ohio, U.S. history.<\/span><\/p>\n

\u201cAll the charges are tied to what federal prosecutors said was a criminal enterprise dedicated to securing a bailout for two nuclear power plants in northern Ohio owned by FirstEnergy Solutions of Akron. The bailout is expected to cost the state’s utility ratepayers $1 billion.\u201d (Cincinnati Enquirer<\/a>, 2020)<\/span><\/p>\n

#7. <\/strong>Alexion Pharmaceuticals<\/strong><\/span><\/h3>\n

Charged by the SEC with violating the FCPA by bribing officials in Turkey and Russia, Alexion Pharmaceuticals will pay $21.4 million to resolve an investigation that began in 2015. The Connecticut, U.S.- based company was also accused of failing to keep accurate financial records at subsidiaries in Brazil and Colombia.<\/span><\/p>\n

\u201cIn Turkey and Russia, Alexion paid government officials and doctors at state-connected hospitals to promote use of its blood-disease drug, Soliris. Alexion retained a consultant in Turkey from 2010 to 2015 with ties to health officials. Alexion Turkey paid the consultant over $1.3 million for \u2018consulting fees and purported expense reimbursements,\u2019 the SEC said. \u2026 In Russia, Alexion paid doctors at government hospitals over $1 million from 2011 to 2015 to increase Soliris prescriptions. \u2026 The bribery resulted in Alexion being \u2018unjustly enriched\u2019 by about $6.6 million in Turkey and $7.5 million in Russia, the SEC said.\u201d (FCPA Blog, 2020<\/a>)<\/span><\/p>\n

#6. <\/strong>Taiwan Presidential Office Secretary-General Su Jia-chyuan<\/strong><\/span><\/h3>\n

In Taiwan, a scandal embroiling some top legislators prompted Presidential Office Secretary-General Su Jia-chyuan to resign from office. Su Jia-chyuan\u2019s nephew, Democratic Progressive Party (DPP) Legislator Su Chen-ching, is reportedly under investigation in a bribery case related to the ownership of a department store. Su Jia-chyuan said he has \u201cnothing to hide\u201d and insisted he is stepping down to avoid letting the controversy continue to affect the president.<\/span><\/p>\n

\u201cTaipei prosecutors on Saturday filed a motion to detain Su Chen-ching, along with four other former and incumbent lawmakers as part of an investigation into bribery allegations against six current and former legislators and their aides. The court hearing on whether to grant the prosecutors\u2019 request to detain them was ongoing as of press time last night. The DPP\u2019s anti-corruption committee convened a meeting at 8 pm to discuss the penalties for Su Chen-ching and former legislator Mark Chen, who has also been implicated in the case and was released on NT$500,000 bail early on Saturday.\u201d (Taipei Times, 2020<\/a>)<\/span><\/p>\n

#5. <\/strong>Former Malaysia Prime Minister Najib Razak<\/strong><\/span><\/h3>\n

As part of the 1MDB corruption scandal, former Malaysian Prime Minister Najib Razak was convicted on seven counts for charges that include money laundering, abuse of power and criminal breach of trust. Investigators said he transferred about $10 million from a 1MDB affiliate to his own bank accounts, and the Malaysian High Court agreed. Razak was forced out of office in 2018 during the scandal.<\/span><\/p>\n

\u201cIn 2015, the Wall Street Journal reported that Najib deposited about $700 million from 1MDB into his personal accounts. He has always denied the allegations. He faces more trials in Malaysia on at least 35 additional corruption charges. The judge Tuesday imposed a 12-year prison sentence on Najib, 67, but suspended it during any appeals.\u201d (FCPA Blog, 2020<\/a>)<\/span><\/p>\n

#4. <\/strong>Alstom<\/strong><\/span><\/h3>\n

A multi-year, multi-million-dollar bribery and money laundering investigation involving Alstom Indonesia resulted in more indictments this year. Reza Moenaf, former president, and Eko Sulianto, former director of sales, for Alstom Indonesia were charged along with a former deputy general manager of Marubeni Corporation\u2019s overseas power project department. They are accused by the U.S. Justice Department of violating the Foreign Corrupt Practices Act (FCPA) and of conspiracy to commit money laundering.<\/span><\/p>\n

\u201cAccording to the Justice Department, Kusunoki, Moenaf, and Sulianto engaged in a conspiracy to pay bribes to officials in Indonesia \u2014 including a high-ranking member of the Indonesian Parliament and the president of Perusahaan Listrik Negara, the state-owned and state-controlled electricity company in Indonesia \u2014 in exchange for assistance in securing a $118 million contract, known as the Tarahan Project, for Alstom Power and its consortium partner, Marubeni, to provide power-related services for Indonesian citizens.\u201d (Compliance Week, 2020<\/a>)<\/span><\/p>\n

#3. <\/strong>Los Angeles City Councilman Jose Huizar<\/strong><\/span><\/h3>\n

Corruption in local politics is still a major issue, especially in a major city like Los Angeles, U.S.  That\u2019s where City Councilman Jose Huizar is alleged to have engaged in a wide array of bribery and corruption acts to enrich himself and his associates. He now faces a laundry list of charges after a federal grand jury returned a 34-count indictment against Huizar.<\/span><\/p>\n

\u201cHuizar was charged last month with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Thursday’s indictment charges Huizar with the following criminal charges: 12 counts of honest services wire fraud; two counts of honest services mail fraud; four counts of traveling interstate in aid of racketeering; six counts of bribery; five counts of money laundering; one count of structuring cash deposits to conceal bribes; one count of making a false statement to a financial institution; one count of making false statements to federal law enforcement; and one count of tax evasion, according to prosecutors.\u201d (CBS News, 2020<\/a>)<\/span><\/p>\n

#2. <\/strong>Asante Berko, Former Goldman Sachs Executive<\/strong><\/span><\/h3>\n

Former Goldman Sachs executive Asante Berko was charged by the SEC as a result of their investigation into his alleged bribery plot. Berko is accused of FCPA violations in his effort to help an energy company based in Turkey secure a contract for a power plant in Ghana. He was charged in a civil complaint in New York, U.S., for \u201caiding and abetting violations of the FCPA anti-bribery provisions.\u201d<\/span><\/p>\n

\u201cAccording to the SEC, Berko helped the Turkish energy company pay at least $2.5 million to a Ghana-based intermediary, \u2018all or most of which was used to bribe Ghanaian government officials\u2019 to secure approval of an electrical power plant project. \u2026 In 2015, Berko negotiated a contract for the Turkish energy company to pay the intermediary $2.5 million at first, and up to $42 million over five years, the complaint said.\u201d (FCPA Blog, 2020<\/a>)<\/span><\/p>\n

#1. <\/strong>Cardinal Health<\/strong><\/span><\/h3>\n

Ohio, U.S.-based Cardinal Health paid the SEC $8.8 million Friday to settle FCPA offenses related to a Chinese subsidiary that provided marketing services. Cardinal Health allegedly violated provisions for maintaining books and records, as well as internal accounting controls. Cardinal Health first began doing business in China after acquiring an existing company and rebranding it. It appears the company made voluntary disclosures and has been taking proactive steps to address the corruption issues in its ranks.<\/span><\/p>\n

\u201cIn 2016, Cardinal China learned that the marketing employees and the dermo cosmetic company had disguised some \u2018marketing payments\u2019 that were funneled to healthcare professionals who provided marketing services, as well as other employees of state-owned retail entities. The state-owned entities had influence over purchasing decisions related to the dermocosmetic company\u2019s products. Cardinal took steps to stop the suspect payments in 2016 when it learned about the misconduct, the SEC said. In December 2016, Cardinal voluntarily disclosed the results of its internal investigation to the SEC.\u201d (FCPA Blog, 2020<\/a>)<\/span><\/p>\n

Stay tuned for Part 2 or follow us on LinkedIn<\/a><\/strong>, Facebook<\/a> <\/strong>or Twitter<\/a> <\/strong>for more industry news and insights.<\/span><\/p>\n

Staying one step ahead of any critical risk to your organization is part of being an effective business leader. Contact us today<\/a> to get started on implementing a robust program that will serve you well for years to come. Get your FREE QUOTE<\/a> now!<\/strong> <\/span><\/p>\n

We Welcome You To Have Free Gap Analysis of Highest Ethical Business Survey: prove that your business is ethical. Complete our FREE Highest Ethical Business Assessment (HEBA) and evaluate your current Corporate Compliance Program.<\/span><\/p>\n

TAKE THE GAP ANALYSIS NOW!<\/a><\/span><\/p>\n

Find out if your organization’s compliance program is in the line with worldwide Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Frameworks. Let ABAC\u2122 experts prepare a complimentary gap analysis of your compliance program to evaluate if it meets \u201cadequate procedures\u201d requirements under UK Bribery Act, DOJ\u2019s Evaluation of Corporate Compliance Programs Guidance and Malaysian Anti-Corruption Commission.<\/span><\/p>\n

The HEBA survey is designed to evaluate your compliance with the adequate procedures to prevent bribery and corruption across the organisation. This survey is monitored and evaluated by qualified ABAC\u2122 professionals with Business Ethics, Legal and Compliance background. The questions are open-ended to encourage a qualitative analysis of your Compliance Program and to facilitate the gap analysis process.<\/span><\/p>\n

TAKE THE GAP ANALYSIS NOW!<\/a><\/span><\/p>\n

The survey takes around 10 minutes to complete. ABAC\u2122 is powered by CRI Group\u2122 – this GAP analysis will be performed by ABAC\u2122.<\/span><\/p>\n

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About us…<\/span><\/strong><\/p>\n

Based in London, CRI Group\u2122 works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international <\/span>Risk Management<\/span><\/a>, <\/span>Employee Background Screening<\/span><\/a>, <\/span>

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In 2016, CRI Group\u2122 launched <\/span>the Anti-Bribery Anti-Corruption (ABAC\u00ae) Center of Excellence<\/span><\/a> – an independent certification body established for <\/span>ISO 37001:2016 Anti-Bribery Management Systems<\/span><\/a>, <\/span>ISO 37301 Compliance Management Systems<\/span><\/a> and <\/span>ISO 31000:2018 Risk Management<\/span><\/a>, providing <\/span>training<\/span><\/a> and <\/span>certification<\/span><\/a>. ABAC\u2122 operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group\u2122’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organizations. <\/span>Contact ABAC\u2122 for more<\/span><\/a> on ISO Certification and training.<\/span><\/p>\n

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MEET THE CEO<\/span><\/strong><\/p>\n

Zafar I. Anjum is Group Chief Executive Officer of CRI Group\u2122 (www.crigroup.com<\/a>), a global supplier of investigative, forensic accounting, business due to diligence and employee background screening services for some of the world’s leading business organizations. Headquartered in London (with a significant presence throughout the region) and licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center – QFC, and the Abu Dhabi Global Market-ADGM, CRI Group\u2122 safeguard businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. CRI\u00ae Group maintains offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China, the USA, and the United Kingdom.<\/span><\/p>\n

Contact CRI Group\u2122 to learn more about its 3PRM-Certified\u2122 third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous risks posed by third-party partnerships.<\/span><\/p>\n

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CONTACT INFORMATION<\/span><\/strong><\/p>\n

Zafar Anjum, MSc, MS, CFE, CII, MICA, Int. Dip. (Fin. Crime) | CRI\u2122 Group Chief Executive Officer<\/span><\/p>\n

37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA United Kingdom<\/span><\/p>\n

t:<\/strong> +44 207 8681415<\/a> | m:<\/strong> +44 7588 454959<\/a> |

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