Update on Arevalo.

Back in August, I wrote a piece on the newly elected president of Guatemala, Bernardo Arevalo, who positioned himself as an anti-corruption activist. Last week, Arevalo was finally inaugurated, but only after a last-ditch attempt by his opponents to challenge his authority. According to an article in the New York Times, his opponents in Congress passed a budget that would severely restrict his ability to spend government funds on healthcare and education, two of his main priorities. There have also been numerous legal challenges by his conservative opponents, including a threat to arrest his vice president Karin Herrera on seemingly spurious and politically motivated challenges. In the coming months, Arevalo and Herrera will face further challenges to their authority from conservative opponents and organized criminal threats.

China’s Ongoing Battle Against Corruption.

China and, more importantly, President Xi Jinping’s battle against entrenched corruption is continuing to make headline news. According to a report in Bloomberg, Xi’s most recent comments will put large swathes of the Chinese economy on edge, and that could continue to fuel uncertainty both domestically and abroad if one of the world’s biggest economies is in a state of constant turmoil. According to a report by CNN, Xi is primarily focused on misconduct in the healthcare, financial, and infrastructure sectors. These actions raise an interesting question: can corruption ever be truly stopped? While there have been some examples, such as Ukraine, where Zelenskyy has made some impressive strides in the last year, by and large, corruption and greed will always occur. If a country with China’s resources can’t fully root out corruption, then no one can. Catching a few big fish will always look good, but there will always be small fish in a pond that will induce greased palms and the benefits those bring.

Fat Leonard Returns to the U.S. to Face Justice.

Today, as part of a prisoner exchange deal, Leonard Francis, better known as Fat Leonard, has been extradited to the U.S. from Venezuela to face justice. According to the Washington Post, Francis was returned to the U.S. along with ten other U.S. citizens who were imprisoned in Venezuela. While Francis had not committed any crimes in Venezuela, the Maduro government had detained him on the off chance a prison swap with the U.S. ever seemed feasible. According to a report by CNN, In exchange for Francis, the U.S. issued clemency to Alex Saab, a financier with close links to Maduro, who was wanted on money laundering charges by the U.S. government. It has been a long road, but finally, Francis will face U.S. justice and spend a long time in prison.

High-Ranking Cardinal Found Guilty in Embezzlement Case.

Over the weekend, former high-ranking Cardinal Angelo Becciu was found guilty of Embezzlement and Fraud by a criminal court in the Vatican and sentenced to five and a half years in prison. According to a Reuters report, the trial centered on the purchase of a building in London formally by the department store Harrods for £350 million in 2013 through an Italian financier named Raffaele Mincione, while Becciu was the second highest ranking member of the Secretariat of state. According to a report by the CBC, Minicione was also found guilty of embezzling funds from the Vatican. In 2018, with Becciu in another position within the Vatican, the Secretariat attempted to turn to another financier, Gianluigi Torzi, who himself fleeced the Vatican out of millions and was also found guilty of fraud and embezzlement. Eventually, the Vatican took a £140 million loss on the entire investment. No one told Becciu that making a habit out of embezzlement is a bad idea.

EU Approves Membership Talks with Ukraine.

Yesterday, the EU approved membership talks with Ukraine and Moldova. While this is undeniably a big step for Ukraine as a country, it is not certain that Ukraine will be accepted into the bloc. According to a report in The Guardian, Hungarian President Viktor Orban, a well-known ally of Russia and President Putin, is threatening to hold up the process in any way possible. It is entirely possible that Orban’s sole goal was to get the EU to release 10 billion Euros from the EU budget. Ukraine has a lot of work to do before it can be accepted into the bloc. According to an article in Reuters, Ukraine must continue to clean up its judicial system and hire more anti-corruption professionals. It will be a long road, but based on its recent track record, Ukraine is committed to joining the EU despite the ongoing conflict with Russia.

An Update on Michelle Mone.

Recently, it has emerged that Baroness Michelle Mone is facing a criminal investigation concerning the PPE Medpro scandal. According to a report in The Guardian, Mone and her husband, businessman Douglas Barrowman, are facing allegations of conspiracy to defraud, fraud by false representation, and bribery brought by the National Crime Agency (NCA), Britain’s version of the FBI. For the last several years, Mone and Barrowman have denied any involvement in profiting off the lucrative government contracts awarded to PPE Medpro. According to an article in the BBC, Mone regrets not informing the public of her role in the company. However, she made this apology in a documentary funded by PPE Medpro. This all seems dodgy to me, and I don’t see the NCA putting much stock in it, either.

The State of Corruption in Moldova.

(Disclaimer: Yesterday, I attended an event at the Brookings Institute where the Justice Minister of Moldova spoke about the country’s Anti-Corruption efforts).

Moldova borders Ukraine in Eastern Europe, and Russia is viewed as its sphere of influence due to Moldova being part of the Soviet Union. According to the Anti-Corruption Resource Center, Moldova is a country that, like many in the region, has a strong oligarchy where corruption and bribery are prevalent. Despite this, in 2021, the election of Maia Sandu and the Party of Action & Solidarity (PAS) signaled a new era of commitment to anti-corruption initiatives. An article by the Center For Security and International Studies states that due to the conflict in Ukraine, Moldova has applied for membership to the EU despite opening up to foreign investors and instituting judicial reforms. While these are encouraging steps to combat corrupt influences, it appears that, like Ukraine, Moldova is trying to make strides in eradicating corruption.

Two High-Ranking Cyber Security Officials Sacked in Ukraine.

Today, two high-ranking officials in the Ukrainian government’s cyber security department were fired. According to a report in Reuters, Yurii Shchyhol and Viktor Zhora, the head and deputy head of the State Service of Special Communications and Information Protection of Ukraine (SSSCIP), were sacked due to allegations of their role in a plot to embezzle $1.72 million between 2020 and 2022. According to a report in US news, Shchyhol and Zhora are accused of buying software at increased prices from two companies they allegedly ran. The procurement process for the software program was very secretive and possibly rigged in favor of Shchyhol and Zhora. Ukraine is making strides in confronting corruption, but there is a long way to go.

Panama Removed from FATF Gray List.

Last week, Panama was from the Financial Action Task Force (FATF) Gray List. FATF is an Inter-governmental organization that monitors corruption worldwide. According to an article in the US News, the Panamanian government has made enough reforms to the financial sector that the country can be taken off the list. This will, according to the article, open the door to more international investment. While this is undeniably a good sign, one has to hope that the type of people who want to put money in Panama are doing it for the right reasons.

Former Head of China Bank Arrested on Corruption Charges.

Today, China arrested the former head of one of its largest commercial banks, Liu Liange. According to the BBC, Liu is accused of illegally granting loans, bringing banned publications into China, and accepting bribes. Liu was expelled from the communist party after this accusation came to light. According to Barrons, President Xi has been embarking on a wide-sweeping campaign to eradicate corruption from the Communist Party. One must assume that Liu probably won’t see the light of day soon.