Earlier this week, the chief justice of the Ukrainian supreme court was fired due to being caught up in a bribery scandal. Ukraine is in the process of cracking down on political corruption. According to a report from Reuters, while it is not immediately clear who was arrested, the current chief justice is Vsevolod Kniaziev. According to an article in The Guardian, the bribe may have been paid by a company called The Finance & Credit Group, owned by a well-known businessman called Konstiantyn Zhivago, to influence the court. If you are Kniaziev, seeing pictures of stacks of cash lined up on your living room sofa, surely that can’t be a good sign.
Category: Anti-Corruption
Odesa Mayor Arrested on Corruption Charges.
Last Thursday, the mayor of Odesa, Hennadii Trukhanov, was arrested in connection with an ongoing corruption investigation. Recently, Ukraine has been in the process of cracking down on governmental misconduct. According to Radio Free Europe Trukhanov is alleged to have embezzled roughly 2.5 million dollars from Odesa’s budget through a scheme involving the purchase of a disused factory. On Friday, according to Yahoo News Trukhabov was released on bail. While it is an encouraging sign that high-ranking government officials are being investigated over corruption allegations, Ukraine still has much to achieve, or they are serious about cracking down on governmental wrongdoing.
UK Government Plan to Enhance Their Transnational Crime Laws.
Recently, the UK Government announced a plan to strengthen its laws regarding transnational crime. A primary focus of this plan is to stop the flow of illicit money entering the country. The government’s press release states it will commit £400 million to combating money laundering worldwide. Despite this supposed rosy outlook, a report by The Guardian suggests that the level of commitment, both in terms of money and personnel, is not enough. Despite the language in the government report, the Guardian notes there are concerns by both politicians and think tanks that not enough is being done to stop the flow of Russian money into the UK. It strikes me that there will need to be more investment into this issue if the tap of dirty money is ever to be turned off.
Ukraine Appoints a New Anti-Corruption Czar.
Last week, the Ukrainian government appointed Semen Kryvonos as the new National Anti-Corruption Bureau of Ukraine (NABU) director. According to a Reuters article, Ukrainian prime minister Denys Shmyhal stated that this appointment would satisfy one of the requirements allowing Ukraine to be accepted into the European Union. They must commit to tackling the widespread corruption that has plagued the country for years to gain entry. Despite Kryvonos’ appointment, questions about his suitability for this role have been asked. According to an article published by euromaidanpress.com, the Anti-Corruption Action Center, an activist group in Ukraine, worries that Kryvonos’s previous experience in Ukraine’s urban planning department isn’t sufficient experience for tackling endemic graft. This is a step in the right direction, but Ukraine will have to do more if it is genuinely serious about combating malfeasance and obtaining entry into the EU.
Vietnam’s Ongoing COVID Corruption Scandal.
In recent weeks The Vietnamese government has been conducting a widespread anti-corruption crackdown. The head of the communist party, Nguyen Phu Trong, is driving this crackdown. According to an article by The Washington Post, two deputy prime ministers in Vietnam have resigned because their staff members have been detained on corruption charges. The allegations involve taking bribes during the COVID pandemic. One staff member was alleged to have taken bribes while purchasing COVID test kits, and another staff member was alleged to have taken an illegal payment from a transport company repatriating Vietnamese citizens who lived abroad. This is on top of a former deputy health minister being sentenced to four years in prison for being involved in a counterfeit medicine scheme.
Recently, an article by Aljazeera reported that the President of Vietnam, Nguyen Xuan Phuc resigned from his post after an internal Communist Party investigation. Phuc was said to have “taken political responsibility as leader when several officials, including two deputy prime ministers and three ministers, committed violations and shortcomings, causing very serious consequences .” An article in The Guardian stated that Phuc’s resignation might also be tied to political infighting in the Communist Party. It was also reported in an article by Radio Free Asia that the head of the agency related to vehicle registration was arrested on charges of taking bribes from the directors of regional vehicle registration centers across the country. It is clear that more high-profile names will likely be caught up in this mess.
Zelenskyy’s House Cleaning.
President Volodymyr Zelenskyy has recently fired several high-ranking officials in what is becoming an ever-widening corruption scandal. Reports emerged on Monday, the 23rd of January, that Zelenskyy had fired his deputy infrastructure minister Vasyl Lozinskyi for allegedly stealing $400,000 intended to support the war effort. According to an article in The Guardian, Lozinskyi colluded with contractors to inflate the price of items such as generators, and he would pocket the difference. And according to a Reuters article from the 22nd of January, defense minister Oleksiy Reznikov had secured food on contracts at highly inflated prices. Zelenskyy’s deputy cabinet minister was also fired after allegations emerged that he drove luxury cars around Kyiv shortly after Russia invaded.
A recent Washington Post article highlights the role journalists and NGOs in Ukraine have played in exposing corrupt schemes. Also, according to a recent report by The Guardian, Oleksandr Novikov, the country’s lead anti-corruption tsar, has vowed not to let up on pursuing corrupt individuals despite being in a war. According to polling done in Ukraine before the war, only 40 percent of the Ukrainian population was willing to report corruption. However, 84 percent of the population is now ready to report wrongdoing. Surely if Countries such as the US and the UK are going to continue giving military aid to Ukraine, they will want to see some progress on the anti-corruption front.
Australian National Anti-Corruption Commission Enacted.
I recently wrote about the Australian Parliament enacting new Anti-Corruption legislation. This is my original article https://app.legislata.com/posts/33182/detail.
Recently, The Australian Parliament enacted a law allowing the National Anti-Corruption Commission to be created. According to the statement released online by the Office of the Prime Minister, the main aims of the commission are to investigate corruption in Australia within the public sector. This new body will also be able to investigate previous allegations of corruption before the commission begins. The commission will also be able to hold public hearings in exceptional situations. Work will start in the middle of next year.
The History of Transparency International
Transparency International was formed in 1993. Before then, corruption was not studied in depth by international organizations. Corruption and bribery in the developing world were often a necessary part of doing business. However, by 1995, TI established its head office in Berlin, Germany, and subsequently opened 26 chapters worldwide. They started the first global Corruption Perceptions Index, which ranked countries on the level of corruption domestically. In the first decade of the 2000s, TI had advocated for international organizations to create their own anti-corruption bodies. An example of this was the United Nations Convention Against Corruption, which required UN members to enforce anti-corruption laws and encourage global cooperation on corruption.
In the 2010s, Transparency International started to expand its focus. For example, they began to focus on the connection between corruption and climate change and how funds intended to reverse the effects of climate change could be mismanaged. As the 2010s progressed, TI became more focused on combating the use of shell companies and increasingly elaborate methods that heads of state and business people employ to hide away ill-gotten gains. In 2019 Transparency started to focus on the link between corruption and democracy. In particular, they have looked at the connection between democracy in a given country and the level of corruption.
The Potential Ramifications of FATF Sidelining Russia.
In recent weeks there have been reports that the Financial Action Task Force (FATF) is discussing the possibility of excluding Russia from the anti-money laundering group due to the ongoing war in Ukraine. According to the International Working Group on Russian sanctions (a collection of independent experts in international relations based at Stanford University), the ramifications of FATF blocking Russia would be considerable. Firstly, it wouldn’t allow Russia to influence the creation of new International anti-money laundering laws, which Russia may try and water down with its influence. Secondly, it would force western banks to institute further checks on any capital flows in or out of Russia. Finally, complete sanctions would most likely stop the current practice of Russian companies being able to conduct financial dealings through one of the few banks in Russia that have not yet been banned.
Given the current circumstances, Ukrainian financial institutions are leading the drive to get Russia sanctioned by FATF. On October 14th, the National Bank of Ukraine released a statement pushing FATF to exclude Russia from future FATF conferences and legislation. The Ukrainian World Congress, a non-profit organization advocating for the rights of Ukrainians worldwide, has added its voice to calls for Russia to be sidelined. While the West should welcome such a move, it is now unclear if and when it will happen.
A New Anti- Corruption Task Force in Australia?
The recently elected Labor government (similar to the Democrats in the U.S), led by Prime Minister Anthony Albanese, is planning to introduce new anti-corruption legislation. The main goal of this legislation is to set up a federal task force to oversee any anti-corruption investigations. In recent years, there have been several high-profile corruption scandals, including one involving a labor member of Parliament who accepted money from Chinese donors six years ago. According to Peter Hartcher of the Sydney Morning Herald, polling in Australia suggests that the public wants stronger A-C laws. Although bodies already exist at the state level in Australia dealing with this issue, this new legislation will be national. However, despite Albanese’s pledge to enact the law by the end of the year, there are signs that it could be held up by cross-bench members of Parliament who want an in-depth debate of the bill before enacting it. Its passage has also been held up by the passing of the Queen, which has caused Parliament to go into recess.
Crispin Corruption Report 