The SFO has commenced a criminal investigation into the activities of FTSE-listed mining firm Eurasian Natural Resources Corporation (ENRC). read more
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New EU legislation, which will come into force later this year, requires all companies listed on EU stock exchanges (and all large unlisted companies that are registered in the EU) to publish contractual payments made to governments in the form of taxes, royalties and other payments, and to also report their earnings in the countries in which they operate. read more
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Learning from Iraq, an extensive report released by the US Special Inspector General for Iraq Reconstruction estimates that $800 million is unlawfully transferred out of Iraq every week. read more
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Zack Shahin (ZS), a US national and former CEO of property developer Deyaar, has been convicted of accepting a Dh20 million (over £3.5 million) bribe in return for awarding contracts to two other companies. read more
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On 5 March, an Afghan court found the former founder and chief executive of Kabul Bank guilty of fraud and sentenced them to five years in prison. Mr. Farnood and Mr. Frozi were also fined $278 million and $530 million respectively, such sums reflecting the amounts that are believed to have been embezzled. read more
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Following recent corruption allegations originating from the Charbonneau Commission in Quebec, Montreal based engineering firm Genivar has disclosed that several years ago it participated in “inappropriate conduct” in its financing of political parties in Quebec in order to obtain municipal contracts. read more
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No prosecutions have yet been brought against companies under the Bribery Act since it came into force. A report published by Ernst & Young in February of this year reported that only four cases in the past year have been concluded (two civil and two criminal settlements), with one in Scotland. read more
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A Canadian oil company has pleaded guilty to a charge of paying bribes under the Corruption of Foreign Public Officials Act. Griffiths Energy International Inc admitted paying a C$2-million bribe and offering shares to Chad’s ambassador to Canada, his wife and others, hoping to obtain drilling rights to two blocks of land in Chad. read more
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The bankruptcy of Kabul Bank is one of the largest examples of the failure of banking operations in the world, according to a report by the Independent Joint Anti-Corruption Monitoring and Evaluation Committee. read more
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Last month it emerged that Rolls-Royce was co-operating with the Serious Fraud Office (SFO) in investigating allegations of bribery and corruption in connection with the manufacturer's Indonesian and Chinese operations. read more
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In November 2012, Scottish drilling company Abbot agreed to pay a £5.6m civil settlement, having admitted "unlawful conduct" under the self-reporting guidelines recently introduced to Scottish law. read more
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The head of Farmal, a pharmaceutical company based in Ludbreg, Croatia, has been arrested, along with up to 27 company employees, on suspicion of corruption. read more
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On November 14, 2012, the Criminal Division of the Department of Justice and the Enforcement Division of the U.S. Securities and Exchange Commission published A Resource Guide to the Foreign Corrupt Practices Act (the “ FCPA Guidance”), a document that has been eagerly anticipated for more than a year. read more
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Pakistan Prime Minister Raja Pervaiz Ashraf has recently agreed to write to the Swiss authorities to invite them to reopen a corruption case against President Asif Ali Zardari, following an order to do so from the Supreme Court of Pakistan. read more
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On 9 October 2012, the Serious Fraud Office ( SFO) issued revised guidance on the prosecution of the Bribery Act, in relation to facilitation payments, business expenditure and corporate self-reporting. The perception is that the revisions are intended to signal a tougher approach by the SFO. read more
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The European Parliament's Legal Affairs Committee (JURI) voted in favour of a draft directive on 18 September to introduce stronger reporting standards on payments made by extractive companies to foreign governments. read more
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Three vice-presidents of Hewlett-Packard (HP) have been indicted by German Prosecutors, following a three-year investigation into allegations that they made corrupt payments of almost £6 million to Russian officials. read more
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Safran, the French aeronautics and defence group partly owned by the French State, was fined €500,000 on 5 September by a Paris Court for bribing public official in Nigeria. read more
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Mexican regulators have imposed a fine of $28 million on the Mexico subsidiary of HSBC bank for failing to comply with anti-money laundering regulations. The fine is equivalent to approximately half of the subsidiary's 2011 annual profit. read more
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The Government of Greece announced a settlement with Siemens in relation to long-running allegations that Siemens used bribery to secure contracts for the 2004 Athens Olympic games, it was reported on 27 August 2012. read more
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Twenty-five European States have had their key public institutions assessed to determine how effective they are at preventing corruption. Transparency International's National Integrity System (NIS) has been used to carry out a detailed evaluation of the strengths and weaknesses of not only the way institutions are organised, but also of the way they operate in practice. read more
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Sean Fitzpatrick, the former head of Anglo Irish Bank was arrested last month and has been charged with 16 offences as part of an ongoing investigation into alleged fraud at the bank. Fitzpatrick is the third former senior executive from the bank to appear in court. read more
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In an SEC filing on 1 August, Avon Products Inc confirmed that they are looking to settle a probe into potential violations of the FCPA. read more
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Olympus Corp, the Japanese technology company, recently reported its potential breach of the Foreign Corrupt Practices Act ( FCPA) in relation to a doctor-training programme in Brazil to the United States Department of Justice ( DoJ). The breach relates to the handling of doctors' expenses payments by Olympus. The DoJ's investigation is ongoing. read more
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Oxford University Press (" OUP"), the academic publishing department of Oxford University, has been fined following a High Court action over two OUP subsidiaries based in Kenya and Tanzania. The two wholly-owned subsidiaries made payments to attempt to influence the results of tenders for contracts to supply text books to schools, two of which were funded by the World Bank. read more
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There have been two recent developments in relation to the investigations being undertaken by the City of London Police into potential bribery issues at the European Bank for Reconstruction and Development (EBRD). read more
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On 2 April 2012, a Federal High Court in Lagos struck out the 26 count criminal charges, including money laundering and granting unsecured loans, that had been filed against Erastus Akingbola, the former CEO of Intercontinental Bank Plc. It was alleged that he had stolen N364 billion from the bank. read more
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Two former executives of a subsidiary of Volvo have been convicted of paying bribes to Saddam Hussein's former regime in Iraq. Rune Lundberg and Hakan Nirstedt were found by the Swedish court to have paid $3.6 million in order to secure contracts for their company, Volvo Construction Equipment International AB (VCEI). read more
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Siemens has agreed to pay around €270 million in settlement of a claim relating to bribing Greek officials. read more
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Coutts Bank has been hit with an £8.75m fine by the Financial Service Authority for anti-money laundering control failings. read more
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Former Chairman Tsuyoshi Kikukawa and two other executives at leading camera manufacturer Olympus have been arrested in connection with their alleged involvement in an accounting fraud. read more
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Transparency International UK has recently published a new report entitled " Deterring and punishing corporate bribery: An evaluation of UK corporate plea agreements and civil recovery in overseas bribery cases". read more
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In March 2010, Innospec Ltd, the UK arm of a US-based fuel additives manufacturer, pleaded guilty to charges of bribing public officials in Indonesia in a plea agreement with the SFO. read more
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Four current and former employees of The Sun newspaper were arrested on Saturday, 28 January 2012, along with a serving police officer, in relation to the ongoing investigation into police corruption and illegal payments made to police officers by journalists, known as Operation Elveden (and off-shoot from the phone-hacking investigation known as Project Weeting). read more
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In January 2012, Santos Ramirez, a close ally of Bolivian President Evo Morales and former president of the state-owned YPFB oil company, was successfully convicted of corruption for accepting bribes. read more
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The Cabinet of Karnataka State in India has just approved a bill which aims to improve efficiency in the delivery of public services and stamp out corruption. read more
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We’d like to welcome you to our new firm, Edwards Wildman Palmer LLP. On August 15, the law firms of Edwards Angell Palmer & Dodge and Wildman, Harrold, Allen & Dixon announced they would officially merge on October 1 – and here we are! read more
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Hot on the heels of the UK Bribery Act coming into effect, the Financial Services Authority (FSA) have just imposed their biggest ever fine against Willis Limited (Willis) in relation to failings of anti-bribery and anti-corruption systems and controls. read more
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In Sinclair Investments (UK) Limited v Versailles Trading Finance Limited & Others [2011] EWCA Civ 347 the Court of Appeal considered the relief available following the breach of a fiduciary duty. read more
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Last week, Judge Matz of the Federal District Court for the Central District of California declined to dismiss Foreign Corrupt Practices Act ("FCPA") bribery claims against Lindsey Manufacturing Co. (“Lindsey”). read more
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The law of bribery in England and Wales is widely regarded as outdated and uncertain. The Government has been under significant international pressure to revise and simplify the law, in particular from the Working Group responsible for monitoring compliance with the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, to which the United Kingdom is signatory. read more
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Two former directors and a sales manager of UK engineering firm Mabey & Johnson have been convicted of bribing government officials in Iraq in order to secure a contract to supply bridges. read more
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At the end of January, TI-Canada launched its Anti-Corruption Compliance Checklist (ACC). read more
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U.S. manufacturer Tyson Foods agreed last week to pay fines of $5.2 million in order to resolve Foreign Corrupt Practices Act charges stemming from payments made by its Mexican subsidiary to government veterinarians responsible for certifying certain products for export. read more
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On 20 January the English High Court refused to block the extradition of a British solicitor to the US on charges relating to the bribery of public officials in Nigeria. read more
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The Home Office has announced that it will be taking over a project from the Treasury to create a new body to tackle economic fraud to replace the Serious Fraud Agency. read more
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The US Securities & Exchange Commission ("SEC") and the US Department of Justice ("DOJ") last week announced settlements with no fewer than seven oil services and freight forwarding companies in connection with charges that the companies had violated the Foreign Corrupt Practices Act by paying millions of dollars in bribes to foreign officials. read more
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Janaagraha, a Bangalore-based NGO has launched an innovative online forum that will attempt to tackle corruption. read more
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ABB Ltd. (“ABB”), a Swiss corporation that provides power and automation products and services worldwide, settled civil and criminal charges alleging that it engaged in extensive bribery schemes in Mexico and Iraq for an aggregate penalty of $58.3 million. read more
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The newly enacted Dodd-Frank Act, which implements a number of heightened controls on US markets, contains a notable provision allowing whistleblowers in foreign bribery cases concerning public US companies to recover a portion of the total monetary penalty ultimately imposed upon the offender. read more
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It has been reported that Kabul Bank, which is partly owned by President Hamid Karzai's brother and has been beset by graft claims, has been taken over by Afghanistan's central bank. read more
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Following the Rio Tinto case, where four executives were jailed for accepting bribes and stealing commercial secrets, two Chinese executives have been imprisoned as the sources of some of the leaks. read more
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The recently announced departure of Mark Mendelsohn as FCPA Chief at the US Department of Justice may well signal a new chapter in what is already a new era of FCPA enforcement. read more
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The Indonesian government has stated that they plan to implement the Extractive Industries Transparency Initiative (EITI). The EITI was launched in 2002 by the former UK prime minister, Tony Blair, and provides that oil, gas and mining companies incorporated in a signatory country disclose all material payments made to governments and all material revenues. read more
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Speaking at the Organisation for Economic Co-Operation and Development (OECD) in Paris on May 31, 2010, US Attorney General Eric Holder reinforced the commitment of the US in working with foreign prosecutors to further ramp up the war on business corruption. read more
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In January, as part of its most significant reorganization since its establishment in 1972, the SEC’s Enforcement Division created the Foreign Corrupt Practices Act Division, one of five national specialized units dedicated to priority areas. read more
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We have previously reported here to the Whistleblower Protection Bill. read more
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Transparency International, a global anti-corruption organisation, has stated that the laws relating to anti-corruption in Armenia, Azerbaijan and Georgia, must become stronger and be fully implemented, after carrying out reports in each country. read more
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The World Bank has declared that 'the entire Macmillan entity' has been banned from taking up World Bank contracts after it emerged that the company had made 'corrupt payments' in 2008 and 2009 in an effort to influence the award of a World Bank-supported education project worth millions of dollars. read more
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Lalit Kumar Modi, Chairman of Indian Premier League (IPL) has been suspended over corruption allegations in relation to granting broadcasting rights and bids for team franchises. read more
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A number of international firms have signed an accord in Moscow which serves as an agreement not to offer bribes. The move, which sees over 50 corporations pledge to take a 'no tolerance' attitude to bribery, is led by a number of German companies, including Daimler, Siemens and Deutsche Bank. read more
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Global beauty company Avon Products, Inc. on April 30, 2010 revealed that the costs associated with its internal FCPA investigation of alleged bribery in China have begun to affect its financial results, and that its compliance review is expanding to other countries. read more
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Zimbabwean Prime Minister Morgan Tsvangirai condemned corruption and smuggling of mineral resources in the Zimbabwe International Trade Fair and called for greater accountability among businesses. read more
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Five major development banks’ in cluding the World Bank have recently agreed to jointly sanction individuals or companies found guilty of fraud and corruption in development projects. read more
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In R v Dougall [2010] EWCA Crim 1048, Robert Dougall, a former senior healthcare executive, who held the positions of vice president of DePuy Inc and marketing director of DePuy International, has been jailed for 12 months after being found guilty of helping to pay more than £4.5 million in bribes to Greek officials. read more
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DOJ has issued a FCPA Opinion concerning a flat-fee monthly contract between the Requestor’s local subsidiary in the Foreign Country and an Individual for the position of Facility Director. read more
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Building Magazine has revealed that MW Kellogg plans to report itself to the Serious Fraud Office (SFO) about its misconduct in Nigeria during the construction of the Bonny Island natural gas plant in the Niger delta in return for more lenient penalties by the SFO. London based MW Kellogg is jointly owned by the US engineering and construction company Kellogg, Brown & Root (KBR) and the Japanese Japan Gasoline Company (JGC) Corporation. read more
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In keeping with a recent trend, DOJ imposed a stiff $93.6 million penalty on Daimler AG for FCPA violations. read more
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On 23 March 2010, Ian Norris was flown to Pennsylvania to face 'obstruction of justice' charges relating to his alleged involvement in price-fixing when chief executive at the industrial materials group, Morgan Crucible. read more
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The strained relationship between the US and the UK in relation to extradition has again been put under the spotlight recently in relation to an alleged international bribery scam. read more
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New reports on the implementation of the Inter-American Convention Against Corruption have been adopted in respect of Venezuela, Ecuador, Mexico, Colombia and Trinidad and Tobago by a committee of anti-corruption experts of the Organization of American States (OAS) (for more information about the OAS, see below). read more
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As previously reported here Innospec Ltd has admitted to bribing officials in Indonesia and accepted financial penalties in an unprecedented plea agreement with the Serious Fraud Office (SFO). read more
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Today, Justice Collins refused to grant permission for the Corner House and the Campaign Against Arms Trade (CAAT) to commence judicial review proceedings against the decision of the Serious Fraud Office to agree a settlement with BAE Systems and to discontinue its prosecution of Count Alfons Mensdorff-Pouilly. read more
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The Hong Kong-based company Political & Economic Risk Consultancy has released the results of its 2010 survey on Asian corruption. read more
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As previously reported here Innospec Ltd is facing bribery charges brought by the Serious Fraud Office (SFO). read more
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The ongoing investigations into the business practices of Siemens have been further highlighted after former Siemens AG CEO, Heinrich Von Pierer, was fined by German prosecutors for negligently failing to carry out his corporate supervisory obligations. The investigations relate to accusations that Siemens have been party to corruption and bribery in order to secure client orders. The company has already agreed to pay substantial fines in both Germany and the United States. read more
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Uganda’s Parliament is debating legislation to protect citizens who expose government or commercial corruption on matters of public interest. read more
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On 1 March 2010, Campaign Against Arm Trade (CAAT) and the Corner House obtained an injunction preventing the Serious Fraud Office (SFO) conducting further settlement negotiations with BAE Systems. read more
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On 23 February 2010, prior to the opening of the so-called "Two Conferences" (a duo of events held every year in March, the National People's Congress and the Chinese Political Consultative Conference respectively), the Chinese Communist Party (the CCP) issued a new Code of Ethics in an attempt to address the growing corruption problem, stabilise the Chinese society and restore faith in its business community. The last set of anti-corruption rules was implemented on a trial basis in 1997. read more
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The Serious Fraud Office announced on 25 February 2010 that it had charged Innospec Ltd, the UK arm of US-based fuel additives manufacturer Innospec, with conspiracy to break British anti-bribery laws. read more
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On April 28, 2010, the United States Securities and Exchange Commission filed a civil injunctive action charging four former employees of Dimon, Inc. and Standard Commercial Corporation with violating the anti-bribery provisions of the Foreign Corrupt Practices Act. read more
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On 24 February 2010, a rare 9-judge panel of the UK Supreme Court unanimously dismissed Ian Norris' appeal against extradition to the United States. read more
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The trial has recently concluded in Jersey of Raj Arjandas Bhojwani, an Indian citizen having been charged with offences relating to the alleged laundering of around $44m through the branch of the Bank of India on the Island of Jersey. The underlying deals go back to the mid 1990s and concern the sale of vehicles to the former Nigerian regime headed by the late military dictator General Abacha. read more
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On 5 February 2010, the Serious Fraud Office (SFO) announced that it had reached a settlement with BAE Systems and had discontinued its prosecution of the BAE Systems lobbyist Count Alfons Mensdorff-Pouilly. Mr Mensdorff-Pouilly had been charged with conspiracy to corrupt, on 29 January 2010, following the SFO's investigation into BAE's business deals throughout eastern and central Europe. read more
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News of allegations emerged in January that Texan oil company, Kosmos (owned by US private equity groups Blackstone and Warburg Pincus) and its Ghanian partner, EO, a company set up by two political allies of former Ghanaian President, John Kufuor, were being investigated by Ghanaian and US officials. EO helped Kosmos secure control of an oil block that yielded one of Africa's biggest recent discoveries. read more
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Last month Thailand agreed to extradite a British fugitive to Dubai. Michael Bryan Smith had fled to Thailand after accusations he had embezzled £96 million from a Dubai real estate company. read more
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