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The company that bribed the world

277 pointsby dmageeabout 9 years ago

11 comments

joshjkimabout 9 years ago
Cynical reaction: well, we all knew someone was doing it, now we&#x27;ve identified a few.<p>One thing I can&#x27;t help think here is: this is just another uncomfortable truth re: what a truly global economy looks like (frankly, similar the factory jobs leaving the US for cheaper labor countries, etc.). The bottom line is that in many developing countries, bribery is part of the economy, and if western companies want to engage in the economies of those countries, then it&#x27;s not surprising that they need to participate wholly. Because of western anti-corruption laws, they of course can&#x27;t engage directly, so these Unaoil folks found a solid business opportunity to exploit.<p>What sucks of course is that western companies often have funds to overpay vs. the local bribery market, so they end up reducing local economic competition, slowing internal development, flooding incumbents with cash, keep incumbents in power longer than they would be otherwise, and contribute to their illegitimacy.<p>They still should stop, I guess my point is that corrupt systems (usually) pre-existed western corp. participation. If I&#x27;m being optimistic, stories like this hopefully will motivate the US and other western gov. to recognize this reality, and then actually develop and enforce international laws to handle this effectively - though I wouldn&#x27;t hold my breath =)<p>(Of course, the involvement of western governments in colonization and in creating this atmosphere is a whole other discussion, which I won&#x27;t start here..ha)
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rwmjabout 9 years ago
Are all these companies (Rolls Royce, Samsung etc) going to get in trouble under FCPA &#x2F; Bribery Act? If I remember from my corporate anti-bribery training [very necessary for a low-level computer programmer!] you can&#x27;t get away with it just because it was done through a third party.
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brudgersabout 9 years ago
The Huffington Post story reads a bit more concretely, [perhaps due to differences is liable laws?].<p><a href="http:&#x2F;&#x2F;www.huffingtonpost.com.au&#x2F;entry&#x2F;unaoil-bribery-scandal-corruption_us_56fa2b06e4b014d3fe2408b9?utm_hp_ref=australia" rel="nofollow">http:&#x2F;&#x2F;www.huffingtonpost.com.au&#x2F;entry&#x2F;unaoil-bribery-scanda...</a>
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SeanDavabout 9 years ago
I don&#x27;t see a lot of difference between bribery to get something done and lobbying to get the law changed so you can get something done.<p>Note that I am equally disgusted at both of these.
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justsaysmthngabout 9 years ago
The world is extremely corrupt. Widespread corruption is yet another issue hanging over our civilization which we&#x27;ve never had to deal with before in our history.<p>People in the western world usually don&#x27;t realize just how deep the rabbit holes go everywhere around the world and it&#x27;s very sad.<p>I&#x27;ve lived in many countries and I speak 6 languages, including Russian, Spanish and Portuguese, which gives me access to local press in many parts of the world.<p>From Brazil to Turkey, to former Soviet Union to India to China to Latin America, to Africa and the Middle East - the press is teeming with corruption scandals and political unrest triggered by corruption everywhere.<p>All this fantastic economic growth that we&#x27;ve experienced in the last 20 years - all those titanic infrastructure projects, olympic stadiums, high speed trains, highways, new factories, gold mines, oil fields.... had the effect of producing a kleptocratic global &quot;elite&quot;, which currently sits on piles of offshore bank accounts and &quot;own&quot; the power in most of the world, including military.<p>The western companies have gained a lot from this status quo, having shown positive growth year after year, much of it from expansion into foreign markets, which made investors and regulators happy, yet all that growth helped feed and grow the corruption monster to an incredible size.<p>Russia is so corrupt that people have stopped perceiving it as something wrong, rather they internalized it as something unavoidable and &quot;part of the culture&quot; - they&#x27;ve long lost hope of fixing it, given that the political elite owns the legal system, police, armed forces and any dissent or attempt of uncovering the scale of corruption, is quickly eliminated, as was the case of Boris Nemtsov last year.<p>In Moldova, corrupt politicians allowed a group of criminals to extract $1 billion or 1&#x2F;8th of the country&#x27;s GDP into offshore companies and that money was never recovered. It was both sad and comic to see the people on the streets shouting &quot;we want our billion back&quot;. Yeah, right.<p>A former Romanian minister was sentenced to prison in the Microsoft licensing corruption scandal just two days ago. More than $50 million have been paid in bribes in that scandal. Note that we&#x27;re talking about a small country and just one company.<p>Kazakstan, Uzbekistan, Belarus, Ukraine, in fact most of the former USSR (except maybe the Baltic states) are corrupt beyond imagination.<p>People in Brazil are rioting on the streets right now because the current president gave immunity to the former president, accused of huge corruption and money laundering allegations.<p>Venezuela is currently a failed state mainly because of the corruption on all levels.<p>Afghanistan, Iraq, Syria are failed states with terminal corruption, which inevitably leads to war.<p>Africa .. I can just guess.<p>I don&#x27;t know many details about Asia, but I wouldn&#x27;t wonder if the picture is similar as in the rest of the &#x27;developing&#x27; world.<p>Corruption is injust, it leads to cynisism and criminal political interest groups, it strengthens the criminal organizations and people loose hope. Eventually it reaches a boiling point, which results in rioting and war, the radical method of reshuffling the power structure.<p>Sorry for the long comment, but I feel like this issue is on par with climate change - and actually a cause of the latter, so there, I&#x27;ve said it.
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kelvin0about 9 years ago
TL;DR : Vast amounts of money for natural resources bring about vast corruption in unstable states.
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randomgyatworkabout 9 years ago
The worst part is that most people probably figure stuff like this is already happening, so we become cynical, when we find out its true our outrage is used up, then we see our powerlessness and realize that our leaders are probably in on the game already.
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narratorabout 9 years ago
I think this kind of thing makes a strong case for paying bureaucrats higher salaries. People who are in charge of huge decisions are usually paid pathetically and everyone complains that integrity should rule, but it never happens. The amount of revenue lost to the government due to corruption is quite large and governments would save a lot of money by paying bureaucrats in charge of these major decisions well.<p>Singapore, which pays its bureaucrats multi-million dollar salaries, has one of the least corrupt governments in the world according to Transparency International.
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harry8about 9 years ago
The link from the bottom of the page is down. <a href="https:&#x2F;&#x2F;fraudsec.com&#x2F;reports&#x2F;add&#x2F;NickMcKenzieFairfaxMedia" rel="nofollow">https:&#x2F;&#x2F;fraudsec.com&#x2F;reports&#x2F;add&#x2F;NickMcKenzieFairfaxMedia</a> I wonder why? I wonder if fairfax know what they&#x27;re doing setting up anonymous dropboxes or if they&#x27;re encouraging sources into taking unnecessary risks.
ccarter84about 9 years ago
Good thing DoJ staffed up that kleptocracy unit
aryehofabout 9 years ago
For me, reading this was a sad salute to human greed.