CHINA

CHINA'S EX-SECURITY CHIEF UNDER INVESTIGATION

China’s state-run media has announced that Zhou Yongkang is under investigation for “serious disciplinary violations".  Zhou formerly headed China's Ministry of Public Security and was a member of the Politburo Standing Committee. The investigation is being conducted by the Communist Party's corruption watchdog, the Central Commission for Discipline Inspection. If Zhou is officially prosecuted by anti-graft authorities, he will be the highest-ranking Chinese official to be found guilty of corruption since the Communist Party took power in 1949. Dozens of Zhou’s subordinates and advisers have also been investigated, jailed or publicly shamed. These individuals are mainly from areas Zhou once controlled: the southwestern Chinese province of Sichuan, the state-owned oil-and-gas industry and the Ministry of Public Security.

MORE THAN 25,000 PROBED FOR CORRUPTION IN CHINA IN THE FIRST HALF OF 2014

According to statistics released by the Supreme People's Procuratorate, more than 25,000 people were investigated on suspicion of corruption in the first half of 2014.  Approximately 25% of them were civil servants and 1,680 were at or above county level.  In the same period, there were 16,000 "major cases" (where bribes exceeded CNY50,000 (US$8,118) in value or embezzlement surpassed CNY100,000 (US$16,151)) which is nearly 84% of the total. The SPP has also promised to retrieve illegal gains from officials who have fled China.

CHIEF OF THE COMMUNIST PARTY'S UNITED FRONT WORK DEPARTMENT IN INNER MONGOLIA GIVEN LIFE SENTENCE

Wang Suyi was convicted of bribery and sentenced to life in prison by the First Intermediate People’s Court of Beijing making him the first official to face criminal trial since 2012.  He was removed from his post as Chief of the Communist Party's United Front Work Department in the northern region of Inner Mongolia last year.  Chinese media reports stated that he was charged with taking more than CNY10.73 million (US$ 1.7 million) in bribes between 2005 and 2013 in exchange for securing business deals for companies and promotions for individuals.

CHINA LAUNCHES GLOBAL 'FOX HUNT' FOR CORRUPT OFFICIALS

China's Communist Party has launched an international "fox hunt" for corrupt officials who have fled China with huge sums of public money. It has been reported by the Chinese state media that at least 762 individuals have been repatriated on suspicion of "criminality by taking advantage of their positions of power". The Supreme Court stated that more than CNY10 billion (£962m) was confiscated from these individuals.  According to media reports the preferred countries for government officials to flee to include Uganda, Thailand, Malaysia and the United States.

INDIA

ALSTOM CHARGED WITH CORRUPTION IN INDIA

The Serious Fraud Office announced in a brief statement that it was charging Alstom Network UK (a UK subsidiary of Alstom) with three counts of corruption and three counts of conspiracy to corrupt relating to "large transport projects" in Tunisia, Poland and India. According to the Indian media, the SFO also alerted Indian investigators to separate allegations relating to a Delhi Metro contract which bribes were allegedly paid in order to secure.

INDIA VOWS WAR AGAINST HEALTHCARE CORRUPTION

India's new Health Minister has called for tougher laws after the media reported that laboratories had offered kickbacks to doctors who referred patients to their diagnostic centres. The undercover investigation conducted by the Hindi news channel, News Nation, aired footage which purportedly showed private laboratories offering commissions as high as 50% to doctors who made the referrals. The Health Minister stated that India's drug approval agency is a "snake pit of vested interests".

ELEVEN OFFICIALS FROM FOOD AND DRUG ADMINISTRATION SUSPENDED FOR TAKING BRIBES

In the last three years, as many as 19 officials from India's Food and Drug Administration (FDA) including assistant commissioners, food safety officials and drugs inspectors have been suspended for bribery, extortion and dereliction of duty. Eleven of these officials were suspended for taking bribes and seven of these were from the FDA's Food Department.

TAIWAN

EX-PROSECUTOR JAILED FOR CORRUPTION IN TAIWAN

Chen Yu-chen, formally a member of the High Prosecutors' Office, was sentenced to 12 years in prison for taking bribes. She was convicted of accepting nearly TW$24 million (US$800,000) from Shih Yung-hua, an operator of a video gaming and gambling business, in return for dropping charges against him and for pressuring other prosecutors to stop investigating him. Chen was the first female prosecutor charged with corruption last year in a case described by the authorities as "gravely damaging" to the reputation of prosecutors and "dealing a deep blow to the public confidence in the judiciary".  Shih was not charged because he alerted the authorities to the criminal activity.

THAILAND

THAILAND'S ANTI-CORRUPTION COMMISSION HAS RECOMMENDED CRIMINAL CHARGES AGAINST OUSTED PM

Thailand's Anti-corruption Commission has recommended that criminal charges be brought against the former Prime Minister Yingluck Shinawatra for her rice subsidy program which allegedly cost the country billions of dollars. The Commission voted unanimously that the former Prime Minister committed dereliction of duty for failing to stop or cancel the government's rice scheme in order to prevent more corruption and losses. The Commission will now forward the case to prosecutors for indictment by Thailand's Supreme Court.

INDONESIA

EX-ALSTOM EXECUTIVE PLEADS GUILTY TO BRIBING INDONESIAN GOVERNMENT OFFICIALS

William Pomponi, a former vice president of Alstom SA's U.S. unit pleaded guilty to bribing Indonesian government officials in order to win a US$118 million power project.  It has been alleged that Pomponi bribed an Indonesian lawmaker and members of the state-owned electricity company in order to obtain their assistance in securing the contract.

FORMER DEPUTY GOVERNOR OF INDONESIA'S CENTRAL BANK SENTENCED TO TEN YEARS FOR CORRUPTION

Budi Mulya, the former Deputy Governor of Indonesia's Central Bank (Bank Indonesia), has been sentenced to 10 years imprisonment and a fine of IDR 500 million. The Jakarta Court found Mulya guilty of abuse of power and corruption in connection with the Government's US$573 million bailout package for Bank Century in 2008.  Mulya declared Bank Century on the brink of collapse and made it possible for Bank Century to obtain a temporary capital injection from Bank Indonesia. Mulya then accepted an IDR 1 billion (USD $86,000) bribe from former Bank Century owner Robert Tantular.

SINGAPORE

EX-BUSINESS DIRECTOR OF ST ELECTRONICS (INFO-SOFTWARE) SYSTEMS CONVICTED OF CORRUPTION

Mark Edward Tjong, a former business director of an ST Electronics subsidiary, was found guilty of obtaining an SG$57,387 bribe from Mr Mujibur Rahman.  Tjong was employed by ST Electronics (Info-Software) Systems and his job scope included sourcing for tenders from South Asian countries for the senior management of STE.  Mr Rahman was the Managing Director of Kings Shipping & Trading Co, a Bangladeshi firm which handled government contracts. In March 2006, Tjong signed an agency agreement on behalf of STE with Mr Rahman and in return, Mr Rahman gave Tjong S$57,387.

PAKISTAN

SMITH & WESSON FINED US$2 MILLION FOR BRIBING PAKISTANI POLICE

Smith & Wesson agreed to pay US$2 million in fines for bribing Pakistani police officers in 2008.  The company gave the Pakistani police $11,000 worth of guns in return for permission to sell 548 guns to the department (at a profit of US$107,852). The police department considered the guns to be a gift but they were held to be a bribe pursuant to the FCPA. The SEC stated that Smith & Wesson had attempted to conclude deals using gifts in other countries including Nepal, Indonesia, Turkey and Bangladesh.

VIETNAM

VIETNAM SETS UP 11 TEAMS TO SCRUTINIZE ANTI-CORRUPTION ACTIVITIES

At the fifth meeting of Vietnam's Central Steering Board for Corruption Prevention and Control, it was announced that 11 teams have been established to keep a check on anti-corruption activities in 8 provinces, 6 ministries (Finance; Transport; Defence; Agriculture and Rural Development; Labour, War Invalids and Social Affairs; and Culture, Sports and Tourism) and the National Social Insurance Agency.

LAOS

ALMOST US$150 MILLION LOST DUE TO CORRUPTION IN LAOS

The Head of the Government Inspection Authority made an announcement that more than 1.2 trillion Lao kip (US$149.4 million) had been misappropriated since 2012 through corruption. According to him the main forms of corrupt activity in Laos are personal abuse of power for personal benefit, bribery, forgery of documents, illegally modifying technical standards and designs, and delaying document approval for personal gain. He also reminded the National Assembly that state assets were being lost due to incompetent project management.

MYANMAR

MYANMAR TO STRENGTHEN CORRUPTION COMMISSION

The Amyotha Hluttaw (Parliament's Upper House) approved an amendment to the Anti-Corruption Law, upgrading the Anti-Corruption Commission to a union-level body. Before the amendment, the Anti-Corruption Commission merely reviewed complaint letters and reported them to a higher level. It had little power to investigate allegations of corruption.  Members of the Myanmar Parliament stated that the amendment could give the Anti-Corruption Commission more powers to tackle high-level graft.