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Swiss urged to step up fight against corruption. According to a report published, Switzerland
needs to increase efforts to combat bribery and to encourage “whistle
blowing”. The study by the Organisation for Economic Cooperation and
Development (OECD) claims small companies and civil servants lack awareness
of anti-corruption rules. (Yahoo News
(Swissinfo), February 2nd, 2005,
summary by Sherldine Tomlinson).
ZURICH: SWISS
APPROVE BANK SECRECY INITIATIVE The
Swiss parliament approved an initiative sponsored by the recent
majority-winning conservative Swiss People’s Party (SVP) to codify bank
secrecy in the national constitution.
If the initiative becomes law, it will limit Swiss cooperation in
international negotiations on information exchange between tax authorities. Earlier this year, the EU dropped demands
for free exchange of information on non-resident financial information and
settled for transfer of a withholding tax on savings from Switzerland
to relevant country tax authorities.
The Swiss Bankers’ Federation claims the country has implemented tough
laws to monitor criminal or terrorist funds but stand by the view that bank
secrecy is a fundamental right for individuals. Switzerland
handles an estimated one-third of all the money held in private accounts in
offshore financial centers.(Financial Times, 03 Dec 03, summary by Stefanie
Weiland)
FIGHT AGAINST
CORRUPTION In association with the Business Federation and Transparency
International, the Swiss authorities have launched a campaign to help Swiss companies,
active overseas, avoid corruption through a new brochure published to give
advice for companies to develop anti-corruption strategies and take
responsibility. Under stricter anti-corruption laws which comes into force
next month in the country, companies found guilty of bribing foreign
officials face fines of up to SFr5m. ($3.7m.) (Swissinfo.org, 23
Sep 2003, summarized by Hanh Vu).
Geneva. MONEY
LAUNDERING: BENAZIR BHUTTO AND HUSBAND GET JAIL TERM. Former Pakistani Prime
Minister, Benazir Bhutto and her husband, Asif Zardari have been found guilty
of money laundering by a court in Switzerland
and sentenced to a six-month suspended jail term. They have also been fined
$50,000 each and ordered to pay over $2 million to the Pakistani government. According
to the Investigation Judge, Daniel Devaud, millions of dollars had been
deposited by them in accounts in Switzerland
which money has been ordered to be paid back to the Pakistani government.(The
Guardian Newspaper, Nigeria. 6th August, 2003, summary by Latifat Folashade
Kadir).
MILLIONS IN SWISS BANKS LINKED TO ARGENTINE
EX-PRESIDENT Bernard Bertossa,
chief prosecutor in Geneva, stated at least two bank accounts containing
around $10 million belonging to
Carlos Menem, former Argentine President have been blocked. However, the Federal Laundering Control
Authority cannot seize money that has been transferred out of the country and
therefore must rely on other countries’ cooperation in tracing the money trail. (DJ Newswire, Jan.
21, 2002, summary by Marg Reynolds).
MANAGER OF BANK LEUMI DISMISSED ON VIOLATION OF MONEY
LAUNDERING REGULATIONS. . The manager of the Swiss branch of Bank Leumi
le-Israel Ltd., identified from records as Mair Grosz, was asked to be
dismissed by Switzerland’s regulatory Federal Banking Commission for
violating money laundering regulations and accepting money linked to Peruvian
ex-spy chief, Vladimiro Montesinos, who is under trial on several charges
including arms dealings. The Commission has said that the manager had
personally agreed to open the account of Montesinos on recommendation from
the parent bank in Israel.
Moreover, despite large amounts being deposited and indications of activities
related to arms dealings, the bank had not investigated the matter as required
by the regulation on money laundering. The Swiss government had frozen
accounts of Montesinos having more than $110 million in November last
year. However, other banks including
the Swiss Branches of France´s Banque Credit Agricole Indosuez and Israel´s
Fibi Bank, which had reported the Montesinos accounts to the authorities as
soon as his links to corruption and drug trafficking became public, have been
cleared of any wrongdoing. Bank Leumi has assured the regulators of
correcting the shortcomings. The
commission has concluded that the obligation to report to the Federal Agency
on money laundering, as in the Montesinos case, proved that the mechanisms
adopted by Swiss authorities to curb this ill were effective. . . (The
Jerusalem Post, November 13, 2001,
summary by Aruna Balakrishnan).
BANK
LEUMI LINKED TO MONEY LAUNDERING. The Swiss regulatory Federal Banking
Commission ordered the dismissal of the manager of the Swiss branch of Bank
Leumi for violating money-laundering laws in accepting funds linked to former
Peruvian spy chief Vladimiro Montesinos. The Swiss government froze more than
$110 million in accounts linked to Montesinos in November last year.
According to the commission, the Montesinos case showed that Swiss anti-money
laundering mechanisms were effective. Swiss money laundering laws oblige all
financial institutions to exercise "due diligence" by thorough
checks on client identities in guarding against illicit funds. The federal
banking commission said it had found "significant shortcomings with Bank
Leumi le-Israel Ltd. in opening banking relationships with politically
exposed persons." "The bank did not exercise due diligence with
regard to Montesinos. Despite significant amounts deposited and indication of
activities in arms dealing, it did not investigate any further," added
the commission's report. (Source: The Jerusalem Post, November
13, 2001, summary by Pavlidis George).
SWITZERLAND
TO PROVIDE LEGAL HELP IN BENAZIR BHUTTO'S CASE. The Swiss Supreme Court ruled
that Switzerland
could give Pakistan
further legal help in a new anti-corruption case against former Prime
Minister Benazir Bhutto. The legal help will include banking documents of
"off-shore" companies linked to Benazir and her family. Switzerland
has already given Pakistan
other documents for use in the case against Benazir Bhutto. We remind to you
that Bhutto has already been found guilty of corruption in two Pakistani
trials. In its holding, the Swiss Supreme Court rejected arguments from the
companies that the Bhutto family was unable to obtain a fair trial in Pakistan
because of the government installed in a 1999 military coup. (Source: The
Daily Star-Bangladesh, November 7,
2001, summary by Pavlidis George).
Geneva,
SWISS AUTHORITIES TO QUIZ BANKERS, LAWYERS OVER ABACHA LOOT. The judicial
authorities of Geneva are
preparing to question a significant number of bankers and lawyers as part of
an investigation aimed at tracing one billion Swiss Francs. Former Head of
State Gen. Sani Abacha and his associates deposited this amount in Switzerland.
According to the Swiss Radio International (SRI) some 60 bankers, lawyers and
fund managers will be questioned in the coming months. Geneva's
chief prosecutor, Bernard Bertossa said there were "many" people
his department wanted to talk to. "The majority of them work for banks
which accepted money from the Abacha family. But there are also some lawyers
who helped to hide this money," Bertossa explained. Nigerian authorities
asked for Swiss help in recovering money looted by the Abacha clan, thus
Swiss investigators are trying now to trace the assets, to froze them and to
establish whether they are of criminal origin. (Source: Vanguard -Nigeria,
August 8, 2001, summary by
Pavlidis George).
BANK LEUMI SWITZERLAND
INVESTIGATED FOLLOOWING EMBEZZLEMENT
Ernst Imfeld, former Bank Leumi official, has been arrested for
embezzlement and the Bank itself is being investigated for a failure of its
supervisory mechanism and ignoring Swiss financial institution
regulations. The Federal banking
Commission is also investigating Meir Gross, Israeli General manager,
however, Bank Leumi Switzerland stated the Bank itself is careful to fulfill
the laws and regulations and to preserving the secrecy of depositor’s
identities. (Globes, June
4, 2001, summary by Marg Reynolds).
JUSTICE MINISTER JOINS FORCES TO
FORGE U.N. TREATY AGAINST CORRUPTION
Ruth Metzler, Justice Minister, joined other ministers to sign the
U.N. Treaty to monitor national anti-corruption activities and define good
governance. The location and return
of funds embezzled by dictators was highlighted and Swiss authorities have
already frozen millions of dollars in these accounts. Benk Korthals, Dutch Justice Minister,
believes the impact of corruption cannot be sealed off in any country,
therefore transnational efforts are mandatory. (Swiss Info, May 30,
2001, summary by Marg Reynolds).
PROSECUTOR SUGGESTS STOLEN DEPOSITS BE GIVEN TO AID
AGENCIES, NOT RETURNED TO COUNTRIES Bernard Bertossa, Chief Prosecutor, stated
funds found in Swiss bank accounts of dictators and corrupt officials should
not be returned to regimes where it could be misused or stolen again, but
rather to aid agencies. The Swiss
government will draft new legislation on restitution of impounded funds and
he urges lawmakers to consider his proposal.
(Electronic Telegraph, May 4,
2001, summary by Marg Reynolds).
SWISS WATCHDOG SEEKS TO TIGHTEN LAUNDERING RULES The Swiss Federal Banking Commission may
require banks to: exchange detailed
information on customers; make personal contact with the largest customers;
alert other banks if suspicious funds are detected; and make executive level
decisions about acceptance of funds and/or continuing relationships with
politically sensitive persons. The
legal restrictions and conflicts of interest have caused concern among
bankers to lifting certain restrictions.
(Yahoo News (Reuters), Apr
26, 2001, summary by Marg Reynolds).
BANK ACCOUNT DETAILS OF PERUVIAN EX-INTELLIGENCE BOSS SENT
TO LIMA Documentation of Swiss accounts held by Vladimiro Montesinos
have been forwarded to Peru
and there is now a $5 million reward for the capture of Montesinos. Justice authorities signaled documents
could also be made available for Victor Joy Way,
former Peruvian prime minister, General Nicholas de Bari Hermoza, and a Mr.
Garrido. A ‘lack of vigilance’
investigation was initiated in January by the Swiss Banking Commission into
two Swiss banks, UBS and Leu; two Israeli banks, Leumi and Fibi; and Credit
Agricole Indosuez. To date, there
have been no assets discovered in Swiss banks belonging to Alberto Fujimori,
former Peruvian president. (Yahoo
News (AFP), Apr 21, 2001,
summary by Marg Reynolds).
GENEVA: FORMER KREMLIN AIDE GRANTED BAIL Russian authorities promptly paid a $3
million bond to grant bail for Pavel Borodin, former top Kremlin
official. The charges stemmed from
allegations that family and associates of Borodin laundered $30 million in
kickbacks in Switzerland.
Russia
has not provided evidence there was illegal activity in obtaining the money,
and the court noted that money laundering and systematic conspiracy to
launder money would be difficult for the investigators to prove. Borodin was formally indicted and
transferred to a secure unit in a Geneva
hospital after complaining of chest pains.
(Yahoo News (AP), Apr 13, 2001,
summary by Marg Reynolds).
GOVERNMENT
SIGNS CONVENTION ON
CORRUPTION Alain-Denis Henchoz, Swiss
charge d’affaires, has signed a new treaty targeting domestic and
cross-border corruption. The document
requires legal action to be taken against domestic or foreign officials,
members of international organizations, judges, or private individuals who
offer or accept bribes or who are involved in money-laundering. The law has been signed by 32 states and
ratified by 9 states of the 43 Council of Europe members. It must be ratified by 14 states for the
convention to come into force.
(Swiss Info, Feb. 26, 2001,
summary by Marg Reynolds).
HEAD
OF U.N. REFUGEE AGENCY ASKS HELP IN ROOTING OUT CORRUPTION Ruud Lubbers, High Commissioner for
Refugees, has stated organized crime is infiltrating United Nations refugee
aid efforts and referred to the Nairobi, Kenya scandal, in which criminal
officials were accused of human trafficking.
He has encouraged his staff to forward corruption or other allegations
and searches for ways to ease the refugee crisis in Liberia,
Sierra Leone,
and Afghanistan. Funding for refugees has dwindled from the
European Union, however, the United States
stands as the world’s largest donor.
The Nando Times, Feb. 27, 2001,
summary by Marg Reynolds).
LAUSANNE, At
the European Court of First Instance tobacco company Philip Morris counters
civil suit with a challenge of the European Commission’s power to start the
lawsuit. On the sixth of November the European Union (EU) declared it had
filed the suit against R.J. Reynolds and Philip Morris in New York stating
the companies had violated the “U.S. Racketeering Influenced and Corrupt
Organization Act” by allegedly smuggling cigarettes into the 15 nations of
EU. EU officials state billions of euros were lost from the cigarette
smuggling. EU wants a mandate to hinder future smuggling and compensation for
“unpaid customs duties and value added tax.” (individual news, December
22, 2000, summary by Jesse Marsh).
Bern, RUSSIAN
AND SWISS PROSECUTORS ACCUSE EACH OTHER. Last week, Russian prosecutors
decided to close a two-year-old investigation into a corruption case,
concerning two Swiss firms that had allegedly paid bribes to members
of
former President Boris Yeltsin's close circle. The Russian prosecutors
said
that the Swiss had failed to provide them with sufficient information
and
evidence on the crime. Nevertheless, according to the Swiss federal
prosecutor's
office, Swiss authorities gave Russia
all the sufficient information in the probe of the case.
The Swiss office formally announced the
ending of legal assistance to Moscow,
insisting "documents were swiftly passed on to Russian
authorities when they requested them" and describing
the Russian decision to close the inquiry as "exclusively political".
Geneva State Prosecutor Bernard Bertossa said he likely would soon
decide on whether to continue the Geneva
investigation or not. (Source: Moscow
Times- the Associated Press, December
19, 2000, summary by Pavlidis George).
BERN- The Credit Swiss bank has been indicted for
money-laundering over 4$ billion plundered by General Sani
Abacha, Nigeria’s
former leader. The case has been referred to the Swiss Federal Banking
Commission, which has the power to fine the bank up to $5.9 million.
(Financial Times, December 6,2000.
Summary by Fabian Camacho).
MAGISTRATE SAYS BANK OF NEW YORK
LAUNDERING REACHES $500 MILLION.
Investigating magistrate Laurent Kasper-Anserment announced
there is evidence that $500 million was transferred from
accounts at the Bank of New York to Swiss banks in a
Russian attempt to avoid taxes and to launder money. He
said that the money was from Bank of New York
accounts held by Becs, Benex International, and Lowland, all
opened by Peter Berlin, a Russian emigre in the US.
Berlin and his wife
Lucy, a former vice president at the bank, earlier
pleaded guilty to a charge of conspiracy to launder
money, but have not been sentenced. Federal investigation
into laundering has focused on accounts of
Benex, which, along with related accounts at the Bank
of New York, was the primary channel through which
at least $7 billion moved from Russia
to the bank and to foreign bank accounts from February 1996
to
August 1999. Most of the money is believed to have come
from Russian trading companies or rich Russians trying
to avoid taxation. US
prosecutors have said that a portion of the money was
used in criminal activity. (New York Times, 15
November 2000, summary by Debbie Uy).
PERU DISCOVERY OF $22 MILLION LINKED TO PERU
EX-SPY CHIEF. The Swiss embassy in Lima reported that Swiss authorities
have frozen another $22 million found in bank accounts allegedly linked to
Peru's fugitive spy chief Vladimiro Montesinos. It is almost certainly
("absolute probability") that the money came
from arms deals between Russia
and Peru. In
early November, strong evidence of Montesinos' involvement
in corruption came into the light when Swiss
authorities said they found $48 million in bank accounts. Montesinos
was
the presidential aide to Alberto Fujimori for 10 years before the
then-president
fired him following allegations he bribed a lawmaker. (Source:
Reuters, November 28, 2000,
summary by Pavlidis George)
WORKSHOP
ON THE NEW CORRUPTION LEGISLATION. Since May, new corruption legislation is
in force in Switzerland.
The new legislation provides for punishment for those exporters who bribe
foreign officials. Exporters believe that the new legislation creates
uncertainty on the types of conduct that are prohibited. That is why
Transparency International and the Swiss Chambers of Commerce (OSEC) decided
to organize a workshop, in order to examine the consequences of the
legislation to exports. (Source: TI; Neue Zürcher Zeitung, November
22, 2000, summary by Pavlidis George).
Zurich
Banks Agree International laundering code- UBS. Transparency
International has helped twelve banks worldwide to create an international
code stop money laundering. These
guidelines will apply to private banking known as the Wolfsberg
guidelines. (Reuters, October
23, 2000, summary by Amanda Glatzel).
BANKS FORM TASK
FORCE TO SEEK STANDARDS, PROTECT REPUTATION Swiss banks said on Friday they
have formed a high-level task force to put their industry on a more agile
footing amid changes in an increasingly international business. The
International Swiss Financial Centre Executive Committee, headed by Swiss
Bankers Association Chief Executive Niklaus Blattner, also includes six
senior bank executives, including two from the big banks, UBS AG and Credit
Suisse Group. It will focus partly on domestic issues. But a main task will
be to look at ``where we stand in Switzerland compared to different
countries, and what we want to achieve as standards,´´ Swiss Bankers
Association Chairman Georg Krayer said. ``We have to open our eyes. The
playing field is broad and we have to react to this,´´ he said, speaking to
Reuters on the sidelines of a conference held by the Swiss Bankers
Association. E-banking and a host of legal and regulatory issues are creating
challenges for the country´s banking sector, which contributes 11 percent of
Switzerland´s gross domestic product, and generates over 10 percent of its
tax revenues. The latest initiative follows a series of road shows by the
Bankers Association outside the country to promote understanding for Switzerland
and its tight banking secrecy laws. The laws may block foreign authorities
seeking to pry open Swiss bank accounts in cases where money laundering or
tax evasion is suspected. Assets stolen by corrupt dictators including some
one billion Swiss francs in bank accounts linked to late Nigerian dictator
Sani Abacha have also found their way into Swiss bank accounts over the
years. The Swiss government is seeking to reduce such cases, and has
introduced tougher money laundering laws. ``Cases like the Abacha money harm
Switzerland´s reputation and we cannot allow them to be repeated,´´ Swiss
Justice Minister Ruth Metzler told the conference, calling on banks to
support calls for more government staff and resources to improve oversight.
AOL News (Reuters), Sept. 1, 2000
http://www.aol.com
BANKS ARE HAVING TO COME CLEAN ABOUT DIRTY
MONEY THEY LAUNDERED "FUNNY fish
can still get through the net," says James Nason at the Swiss Bankers
Association in Basle. After Congo's
Mobutu Sese Seko and the Philippines'
Ferdinand Marcos, the latest fishy comedian to emerge as an important client
of Swiss banks is the former Nigerian dictator, Sani Abacha. This week the
Swiss Federal Banking Commission published a report that sharply reprimands
the mighty Credit Suisse, its daughters Bank Hofmann and Bank Leu, and three
others for "serious shortcomings" in dealing with Abacha's
ill-gotten gains. Six banks were criticised, two are still under
investigation and only five were found to have complied fully with the
Sorgfaltspflicht, the obligation to exercise due diligence when dealing with
new clients. Just when the approval of a settlement between Swiss banks and
victims of the Holocaust seemed to promise an end to a welter of bad
publicity, Swiss banking is in the soup again. Abacha was one of Africa's
more notorious military rulers. Besides blatant human-rights violations, the
five-year military rule that ended with his death in 1998 was notable for the
illegal transfer of billions of dollars of the country's oil money from the
Nigerian treasury to international banks. An investigation of the Swiss
banks' role in this was launched last year. The Abacha clan alone is
estimated to have enriched itself by about $2 billion. More than a quarter of
it was stashed away in Swiss bank accounts. At regular intervals, Swiss banks
have run into trouble for what looks like an overly hospitable attitude
towards criminal money. Keen to preserve an immaculate Alpine image, the
Swiss authorities in 1997 introduced tough "know your customer"
rules and one of the strictest money-laundering laws in the world. According to
the Swiss Bankers Association, bank-customer secrecy is lifted in cases of
criminal investigations (money-laundering, membership in a criminal
organisation, theft and tax fraud, for instance), in bankruptcy proceedings
and in civil proceedings (inheritance or divorce, say). And Switzerland
is a member of the Financial Action Task Force, an international body set up
to combat money-laundering in 1989. Switzerland's
effort to clean up its financial act has to find a balance between its
international reputation, its banks' ambitions abroad and the demands of
wealthy clients, attracted by Switzerland's
strong tradition of bank secrecy. Swiss banks generate ore than 10% of Switzerland's
GDP. Private banking generates a large proportion of that. After
investigations into the dormant accounts of victims of the Holocaust and
secret accounts of some of the world's
bloodiest dictators, Switzerland's
reputation is a little less pristine. For
the time being the banking business has not really suffered. But
according to an editorial this week in the Neue Zürcher Zeitung, an
influential newspaper, "Switzerland
can only keep its bank-secrecy laws if nothing is left undone to keep
criminal money out of the country." The legal framework is in place. If
only for commercial reasons, the players now need to stick to the rules. Even
if they do, that might not leave the beleaguered but loaded dictators of the
world stranded. After all, half of the Abacha money in Switzerland
reached it via British banks. In addition, ex-President Suharto of Indonesia
was rumored to have moved his stash from Switzerland
to its less leaky neighbor, Austria.
The Economist, Sept 9-15, 2000
http://www.economist.com/editorial/freeforall/current/index_fn7744.html
REGULATORS
CRITICIZE BANKS FOR ACCEPTING FUNDS OF DUBIOUS ORIGEN FROM ABACHA FAMILY
Credit Suisse Group and several other banks failed to exercise proper caution
in accepting funds of dubious origin from the family of Nigeria´s late dictator Sani Abacha, Swiss regulators
said on Monday. In a report following an intense 10-month investigation, the
Federal Banking Commission said it had detected severe shortcomings at six
banks -- three of them part of the Credit Suisse Group -- and lesser problems
at six others. The semi-official watchdog formally reprimanded them all
and said their failure to detect and
reject deposits from dubious origins had
harmed Switzerland´s reputation as a financial centre. But it did not
file criminal charges against any
bankers in the case and is unable under current law to impose fines against
banks rather than individuals who work there. ``The mere fact that
significant assets of dubious origin from
people close to former Nigerian President Sani Abacha were deposited
at Swiss banks is highly unsatisfactory and damages the image of Switzerland
as a financial centre,´´ Banking Commission Chairman Kurt Hauri said. ``The financial centre and Switzerland
as a whole have no interest in funds
that arise from corruption and other crimes,´´ he said, adding Switzerland
was ready to crack down on the practice and urging an international approach to the problem. The case is a blow to
Swiss banks trying to rid themselves
of the image of safe storehouses of wealth
for foreign strongmen like Philippines´ former President Ferdinand Marcos
and Haiti´s Jean-Claude ``Baby Doc´´ Duvalier. Nigeria
suspects Abacha embezzled and stashed
abroad some $3 billion in looted state
funds Swiss authorities had temporarily frozen $660 million in Abacha wealth, while more money was blocked in Luxembourg
and Liechtenstein.
The commission said Credit Suisse Private Banking had not exercised the
proper diligence in accepting deposits -- worth $214 million at the end of
1999 -- from two sons of Abacha who were referred by another big client. It
ordered a special audit. Credit Suisse Private Banking said it had already
taken measures to ensure such cases did not happen again. ``We do not want to
receive any assets of dubious origin from politically exposed persons. Such
funds are not necessary for the success of our business,´´ it said in a
statement. Shares of Credit Suisse Group shrugged off the news and were up
6.50 Swiss francs to 371.50 in a generally weaker Swiss market. Other banks
singled out for criticism included Credit Suisse Group units Bank Hofmann AG
and Bank Leu AG; Credit Agricole Indosuez (Suisse) SA; UBP Union Bancaire
Privee and M.M. Warburg Bank (Schweiz) AG. M.M. Warburg is not related to UBS
Warburg. The panel cited six banks for minor infractions: Banque douard
Constant SA; Banque Nationale de Paris (Suisse) SA; Banque Baring Brothers
(Suisse) SA; J Henry Schroder Bank; Pictet & Cie; and SG Rueegg Bank AG.
The banking watchdog cleared UBS AG, Banca del Gottardo, Citibank NA, Goldman
Sachs & Co Bank and Merrill Lynch of any wrongdoing in the case. Two
other banks are still being investigated. The commission also made the point
that almost a third of the the Abacha cash deposited with Swiss banks had
orignally been banked in the UK,
US and Austria
first. AOL News (Reuters), Sept. 4,
2000 http://www.aol.com
Swiss Redouble
Efforts To Clean Up Financial Sector (See item 9 for Details, April 26, 2000 Dow Jones
Newswires) ZURICH, Soccer’s governing body is investigating a claim made by
FIFA delegate, Charles Dempsey of intimidating phone calls and bribery
attempts for him to vote for Germany to obtain the 2006 World Cup
celebration. Also, other FIFA’s
executive board members reported receiving letters offering them bribes to
vote for Germany. Titanic, a German satirical magazine
admitted it sent the letters, but Stefan Gaertner, magazine editor denied any
intimidating calls. (The Associated Press, July
7, 2000).
ZURICH,
The result of a decision on the location of the 2006 World Cup was influenced by a hoax bribe and a
threat made to Mr. Charles Dempsey
(age 78 from New Zeland) from
"influential European
interests". Rather than voting for South
Africa as intended, Dempsey abstained. Dempsey described the threat as
a simple one: ``It said if I didn't
vote for Germany
I could be in trouble.'' This abstention was
crucial to Germany's
success in winning the vote. (AP, July
10, 2000, summary by
Desmond Fitzgerald).
The OECD anti-Corruption report for Switzerland
can be found at http://www.oecd.org/daf/nocorruption/report.htm
The Index of Economic Freedom
(by Driscoll-Holmes-Kirkpatrick) for 2001 places Switzerland in the “Free”
category with a rank of 11 (Ranks range from 1 for Hong Kong to 155 for North
Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation
analysis indicates that countries free from economic regulation are less
corrupt. After allowing for some exceptions by 20% trimming, the correlation
is near 0.9.
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