CHINA TO FOCUS MORE ON BRIBE-GIVERS
During a recent meeting, the Director of the Anti-Corruption Bureau at the Supreme People's Procuratorate stated that offering bribes was a major cause of corruption and graft could only be curbed by cracking down on the practice. It has been reported that the authorities have pressed prosecutors to change their mind-set and focus on bribe-givers when investigating bribery cases in the future.
CHAIRMAN OF CHINA RESOURCE HOLDING CO. UNDER INVESTIGATION
Song Lin, the Chairman of China Resource Holding Co., is under investigation for violations of discipline and law. In April, it was reported that the Central Commission for Discipline Inspection had stripped Song of his position as the firm's Communist Party Chief. China Resource is one of the largest state-owned enterprises in China and has numerous subsidiaries whose businesses include real estate, gas, beverage and retail.
The investigation has also reportedly prompted an investment bank to conduct an internal investigation focusing on the alleged relationship between one of its Hong Kong bankers and Song. It is alleged that the senior investment banker in question helped Song to launder the money he made from the allegedly corrupt deals.
QUALCOMM UNDER INVESTIGATION DUE TO CONDUCT IN CHINA
Qualcomm recently announced that it may be facing civil action from the SEC for allegedly bribing officials of state-owned companies in China. As part of its own internal investigation, Qualcomm announced that it found instances of special hiring consideration, gifts and other benefits being provided to several individuals associated with state-owned companies. Qualcomm has responded to the SEC's notice by providing an explanation of why it believes it has not violated the FCPA.
AVON SETTLES SEC AND DOJ INVESTIGATION BY AGREEMING TO PAY US$135 MILLION
Avon Products, the cosmetics company, has agreed to pay US$68 million to the Department of Justice and US$67 million to the SEC to resolve allegations that it violated the FCPA by paying bribes in China to gain favours. The settlement proposal has not yet been authorised by the SEC or approved by the court.
DEPUTY CHAIRMAN AND PARTY SECRETARY OF THE CHINESE ASSOCIATION FOR SCIENCE AND TECHNOLOGY UNDER INVESTIGATON
The Party Secretary and Deputy Chairman of state-controlled industry group, the Chinese Association for Science and Technology, Shen Weichen, is under investigation. Shen is also one of China's 130 discipline inspection officials and so the case is notable as the anti-corruption watchdog is investigating one of its own. On 12 April, the Central Commission for Discipline Inspection alleged that Shen had committed serious violations of the law and he was dismissed on 17 April. Shen is the first ministerial level official who has been dismissed this year.
FORMER CHINA MOBILE EXECUTIVE SENTENCED TO DEATH FOR TAKING BRIBES
A China Mobile Executive has been sentenced to death for accepting bribes when Telstra acquired two Chinese businesses (Sharp Point and China M) in 2007. Ye Bing was convicted of accepting US$50 million in bribes in order to facilitate the deal and another executive, Ma Li (who will spend the rest of his life in prison), accepted US$17 million. These two individuals were paid to give preferential treatment to the Chinese companies and assure Telstra of their acquisition potential.
CHINA'S FORMER SECURITY CHIEF, ZHOU YONGKANG, HAS HIS ASSETS SEIZED
Zhou Yongkang is the highest ranking former official embroiled in Xi Jinping's anti-corruption campaign. In April, Zhou, his family members and associates had $14.5 billion worth of assets seized and over 300 individuals were either arrested or questioned. Zhou has been under house arrest since late 2013 but it is thought that the formal charges against him may be announced imminently.
Several of Zhou's inner circle are also being investigated. Ji Wenlin was recently removed as the Vice-Governor of Hainan province and Guo Yongxiang, the former Vice-Governor of Sichuan province, has been removed from office for being "morally corrupt". Further, Li Chuncheng, the former Deputy Communist Party Chief in Sichuan province, is being investigated and has been stripped of his post. It has been alleged that Li spent part of the money he obtained by way of bribes on the services of a feng shui master.
SENIOR OFFICIAL IN QINGHAI PROVINCE UNDER INVESTIGATION FOR GRAFT
Mao Xiaobing, the Party secretary of Xining (the capital of Qinghai Province) is under investigation for serious disciplinary violations.
TWO FORMER OFFICIALS IN HENAN PROVINCE UNDER INVESTIGATION
Liu Guoqing, the former Party Secretary of Zhumadian City and Zhao Yaping, a former member of the standing committee of the Henan Provincial People's Congress are under investigation for serious disciplinary violations.
FORMER DEPUTY CHIEF OF THE DEPARTMENT OF TRANSPORT UNDER INVESTIGATION FOR TAKING BRIBES
Cheng Mengren, the former deputy chief of the Department of Transport in Guizhou Province, was expelled from the Communist Party and placed under investigation for corruption. According to information published by the Commission for Discipline Inspection of Guizhou, Cheng took large amounts of money and gifts as bribes. The case has been transferred to the judicial authorities.
CHONGQING LEGISLATOR UNDER INVESTIGATION FOR GRAFT
Tan Xiwei, the Deputy Director of the Chongqing People's Congress Standing Committee, is under investigation for serious disciplinary violations. Tan served with Bo Xilai for several years before he was jailed and was the Vice-Mayor of Chongqing between 2006 and 2013.
DOJ ASKS INDIA TO PUT CURRENT MP UNDER PRELIMINARY ARREST
The Department of Justice has asked India to put Ramachandra Rao, an official of the state government of Andhra Pradesh and a close advisor to the state's chief minister, under provisional arrest until the relevant documents can be served through diplomatic channels. Rao has been indicted by the US courts for allegedly being involved in an international racketeering conspiracy involving bribes of US$18.5 million.
FORMER HEAD OF INDONESIAN ENERGY REGULATOR JAILED FOR ACCEPTING BRIBES
In April 2014, Rudi Rubiandini (who was Head of SKKMigas), was sentenced to seven years in prison and a fine of US$ 17,000 for accepting over US$ 1.5 million in bribes from companies in the energy sector. He was also found guilty of laundering the money by purchasing cars, a house and a Rolex watch for his wife. Rubiandini was caught when anti-corruption investigators followed a man who was delivering money to him and found large amounts of cash at his Jakarta residence.
FORMER CHIEF OF THE INDONESIAN AUDIT AGENCY NAMED AS A SUSPECT IN BRIBERY CASE
On the first day of his retirement, Hadi Peornomo, the former Chief of the Indonesian Audit Agency was named as a suspect in a US$32 million bribery case. The Corruption Eradication Commission (KPK) alleged that he accepted bribes in exchange for granting tax exemptions to Indonesia's largest private bank, Bank Central Asia. He could be jailed for up to 20 years if he is found guilty of the offences.
MYANMAR PARLIAMENT QUESTIONS JUDICIAL CORRUPTION
Those in the Lower House of Representatives in Myanmar are compiling letters to send to the Chief Justice complaining about corruption in the judiciary. It has been reported that despite numerous complaints from the public regarding biased judges and unjust sentences only three of these cases made it to Myanmar's Supreme Court.
VIETNAM PROSECUTOR SEEKS IDENTITY OF OFFICIAL INVOLVED IN BRIBERY INVESTIGATION
Vietnam's prosecutor's office has officially requested information from Japan as to the identity of a Vietnamese official involved in a bribery investigation. In March 2014, the President of Japan Transportation Consultants Inc. (JTC) admitted that the company paid a Vietnamese official US$782,000 in return for being awarded a contract worth US41 million. After the media reported the case, Vietnam sent its Deputy Minister for Transport to Japan to confer with investigators but they refused to provide further information.
FORMER DIRECTOR OF NATIONAL ARTS AND CULTURE DEPARTMENT CHARGED WITH ACCEPTING BRIBES AND MAKING FALSE CLAIMS
The former director and his wife were charged with accepting bribes in return for approving a quotation to supply clothes and costumes to the National Arts and Culture Department. In addition, the former director allegedly submitted documents with false information.
FORMER OFFICALS OF THE DEPARTMENT OF HEALTH FOUND GUILTY OF ACCEPTING BRIBES
The Philippine anti-graft court (the Sandiganbayan) has found four former officials of the Department of Health guilty of accepting bribes. The officials were sentenced to between six and ten years in jail. They were charged with conspiracy in providing benefits to Aegis Pharmaceutical by awarding a contract relating to the sale of Paracetamol suspensions. The owner of Aegis Pharmaceuticals was also charged and found guilty by the court.
PAKISTAN'S NAB ARRESTS ENERGY MOGULS
The National Accountability Bureau has arrested the Managing Director of the Private Power and Infrastructure Board together with two former CEOs of Lakhra Power Generation Company Limited (Lakhra). They have been arrested in connection with a contract that was allegedly illegally awarded to Turkish company, Karkey Karadeniz Elektrik Uretim (Karkey), for the installation of a Rental Power Project in Karachi. Lakhra was the counterparty to the contract and it is alleged that the individuals in question gave undue favour to Karkey in the negotiation process.
FORMER HEAD OF LOTTE HOMESHOPPING QUESTIONED FOR ALLEGEDLY RECEIVING BRIBES
The former head of Lotte Homeshopping has been questioned for allegedly receiving billions of Won in cash from local subcontractors. Earlier this year prosecutors launched a probe into Lotte to investigate an alleged kickback scheme which involved current and former executives of Lotte Homeshopping. Five officials have already been arrested as part of the investigation.
DOJ SEEKS TO RECOVER MONIES LINKED TO THE FORMER PRESIDENT OF SOUTH KOREA
The Department of Justice has filed a civil forfeiture complaint in order to recover over US$ 700,000 in corruption proceeds linked to Chun Doo-hwan, the former President of South Korea. The funds were seized in February 2014 following the sale of a house in California belonging to his son, which the DOJ alleges was purchased with monies which are traceable to Chun's corruption. In 1997, Chun was convicted of receiving more than US$200 million in bribes from Korean businesses which some of his family members then illegally laundered into the US.