Today, Adidas is embroiled in a bribery scandal in China. According to a report in Aljazeera, a whistleblower claims senior staff received millions of Euros in kickbacks from outside suppliers. According to an anonymous report in Reuters, these senior staff members also received non-financial perks like real estate. There are also reports that a senior staffer with access to the marketing budget may have used those funds for personal use. Executives at Adidas will be worried by the 4% drop in its share price when the stock market opens this morning.
Tag: Germany
The European Union takes a Rightward Turn.
Yesterday, the elections for the Parliament of the European Union took place. According to a report in BBC, the right wing in Germany, Italy, and the Netherlands all made solid gains and will be able to have more of a say in dictating EU policy going forward. Briefly, the way that the EU parliament is that individual parties within a country form blocs within the parliament; for example, the Eurosceptic Alternative for Deutschland party in Germany (AFD) is part of the Identity and Democracy Party bloc (ID) within the EU. Some of the shocking news of the evening came out of France. According to a report in the Washington Post, the President of France, Emmanuel Macron, called a snap legislative election due to the gains made by the far-right National Rally (RN). My fear with elections is that these far-right will undermine European democracy and stop the flow of aid to Ukraine, as it is well known that some of these parties have close ties to Russia.
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.
Crispin Corruption Report 