ProMedica and Toledo: How Big Healthcare Isn’t the Cure-All For Development.

Last week I was in Toledo, Ohio, a city in middle America that has suffered due to the decline of American manufacturing. It has a beautiful library and baseball stadium and has aspirations of renewal. Walking around town, I noticed several large buildings with the branding of a company called ProMedica. I had never heard of the company before and was curious about what it did and how it gained such a large local footprint. In talking to several people around town, I quickly got the impression that the company had recently run into financial difficulties due to the COVID Pandemic.

According to wtol.com, as of May 23rd of this year, ProMedica had sold off its hospice and home healthcare business for $710 million to pay down its existing debts. They aim to return to their core business of running hospitals in the mid-west. As a result of this downsizing, according to Wtol, around 200 nursing employees have been laid off. On top of all the laid-offs and selling off unprofitable businesses, ProMedica has also lessened investment in Toledo. Recently, they announced that they would invest $10 million into redeveloping the riverwalk; however, in March of this year, ProMedica announced that they pulled out of that partnership due to financial issues. This highlights the perils of allowing one company to dominate a city; if that company fails, the whole town suffers.

Lebanon Still Plagued by Corruption Issues.

Recently, the Lebanese central bank head has been summoned back to the country for questioning. According to a report by AP News, Riad Salameh is facing many financial crimes, including, but limited to, illicit enrichment and money laundering of $330 million. Salameh is facing possible investigations in Germany, Luxembourg, France, and Lebanon. A report by the Washington Post suggests that Lebanon may not send Salameh over to French authorities despite France issuing an Interpol warrant for Salameh’s arrest. The legal wrangling over Salameh appears to be unresolved for some time.

Along with Salameh’s travails, Lebanon has been “grey listed” by the Financial Action Task Force (FATF). FATF will closely monitor Lebanon’s efforts to combat money laundering and other financial crimes. According to a report by Reuters, Lebanon scored as only partially compliant in enacting money laundering laws and transparency regarding shell companies. This is another blow to an economy already suffering from high inflation post-COVID-19. Lebanon has much to do if it wants to make progress in eradicating corruption.

Sarkozy Loses Appeal on Corruption Charge.

The former president of France, Nicolas Sarkozy, has lost his appeal against a prison sentence relating to corruption charges. According to the BBC, Sarkozy was sentenced to three years in prison after being found guilty of attempting to influence a judge. Sarkozy offered the judge a job in Monaco in return for information about the status of an investigation centering on allegations of whether or not the Libyan government gave money to his presidential campaign. Reuters reports that despite being sentenced to three years, two are suspended, and Sarkozy will wear an electronic tag for the other year. Sarkozy is facing several further criminal investigations, so, likely, he is not out of trouble yet.

Ukrainian Chief Supreme Court Justice Dismissed After Bribery Scandal.

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.

The Downfall and Imprisonment of Imran Khan.

Last week Imran Khan, the former prime minister of Pakistan, was arrested on corruption charges. According to a BBC report, Khan’s arrest has sparked widespread protests throughout Pakistan. He was forcibly removed from a courtroom by a heavily armed paramilitary unit while facing trial in a separate investigation involving misconduct during his time in office. In recent months, an unknown assailant has made an attempt on his life. Also, in recent months Khan has spoken out against the military’s influence in politics.

Last Friday, according to Reuters, the supreme court overturned Khan’s arrest, which called the arrest unlawful. According to a report in The Guardian, Khan believes that the military was singlehandedly responsible for his arrest. He also claims that the current Prime Minister, Shehbaz Sharif, is involved in a plot to bring him down because he does not want to face him in a future election. The big question is whether or not Khan is genuinely corrupt, or is this all politically motivated? It is probably a little of both; you don’t get into a high office in a place like Pakistan without greasing a few palms. At the same time, Sharif likely sees Khan as a threat in the future.

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.

The EU Aims to Enhance their Anti-Corruption Protocols.

Yesterday, the European Union announced new measures to combat Anti-Corruption. This comes after a recent scandal involving allegations of influence peddling between members of the European Parliament and Qatari government officials. According to a report in The Guardian, the EU executive body plans to criminalize abuse of office, illicit enrichment, and obstruction of justice in cases of misconduct. One of the primary aims of this proposal would be to make it easier for police forces to work together in solving cases across the EU involving transnational criminal groups. This is just a proposal, and despite its importance, it may never come to fruition due to internal European politics.

Russia and Indonesia Sign Extradition Agreement to Stop Transnational Crime

Recently, Russia and Indonesia agreed to an extradition pact between the two countries. In a report by ABC News, this agreement is presented as a way to stop transnational criminals from operating between the two countries. The Russian minister of justice said, “ With this treaty signed, we now have a legal basis for our cooperation in the sphere of combating crimes, and this is going to be systematical and productive in the future.” The Russian Government will invest in the Indonesian railway network as part of this agreement. While this agreement may seem relatively innocent on the surface, there is every chance that Russia could use it to forcibly bring back those it sees as dissidents, which would align with Moscow’s view on human rights.

Ex-Peruvian President Toledo deported from the U.S. to Face Corruption Charges.

Recently, the former Peruvian president Alejandro Toledo, who served from 2001 to 2006, arrived back in Peru after exhausting all legal avenues in the U.S. to avoid extradition. Peru is a country with a recent history of corrupt presidents; there have been no less than four former presidents that have faced serious allegations of misconduct. According to The Guardian, Toledo allegedly accepted $35 million from the notorious Brazilian construction company Odebrecht to win a construction contract to build a highway connecting Brazil and Peru. Odebrecht was involved in a massive corruption scandal in Brazil called Operation Car Wash that involved many Brazilian politicians and public figures taking bribes. Toledo will likely join Alberto Fujimori, Pablo Kuczynski, and Pedro Castillo in jail on corruption charges.

The Wrongful Imprisonment of Vladimir Kara-Murza.

Recently the Russian democracy activist Vladimir Kara-Murza was sentenced to 25 years in prison for what many in the West believe are politically motivated charges. According to a report by the BBC, Kara-Murza was found guilty of “treason” by a Russian court because he spoke to politicians in the United States about Russia committing war crimes in Ukraine. Kara-Murza is a well-known figure in pro-democracy circles in Russia and was close with Boris Nemtsov, another pro-democracy activist who was shot in 2015. Kara-Murza also supported the Global Magnitsky Act, which aims to sanction Russian oligarchs who support President Putin. All of this paints an even grimmer picture of the level of repression in Putin’s Russia.