Monday, April 26, 2010

CORRUPTION


Goldman Sachs was the top Obama donor (CNN.com)

Goldman Sachs reaped $6B after making its $1M Obama contribution.

Senator Carl Levin claims: 'Banks such as Goldman Sachs...bundled toxic mortgages into complex financial instruments, got the credit rating agencies to label them as AAA securities, and sold them to investors, magnifying and spreading risk throughout the financial system, and all too often betting against the instruments they sold and profiting at the expense of their clients.' (Goldman Sachs bosses.)

In Soviet Russia, the communist party centralised the collection of bribes.

In South Korea, bribes are paid by business leaders to a president's campaign fund.

But, in many countries, different ministries, agencies and levels of local government all set their own bribe rates independently. (Corruptionc)


At Inside Indonesia 92, Apr-Jun 2008, Ari Kuncoro, who lectures in economics at the University of Indonesia and who has a PhD from Brown University USA, wrote 'Corruption Inc'

He makes the following points:

1. Economists Shleifer and Vishny, in 1993, distinguished between centralised and decentralised bribery.

Decentralised bribery is worse for economic growth than centralised bribery.

2. In Suharto's Indonesia, corruption was centralised and predictable.

Corruption was controlled by the Suharto family and the top military leadership, in partnership with the big businesses run by the Chinese-Indonesians.

3. In 2001, after the fall of Suharto, Indonesia had a decentralisation program.

More power was given to the regions.

Today, a lot more people are demanding bribes - including local politicians, officials, soldiers and police.

4. President Susilo Bambang Yudhoyono made tackling corruption his central campaign promise.

But, the judicial system and the civil service remain somewhat corrupt.

"The scandalous acquittal by the South Jakarta court of former Bank Mandiri director E. C. W. Neloe ... is just one example."

In 2006, a bribery scandal involved the Chief Justice of the Supreme Court Bagir Manan.


5. There have been successes.

For example, in 2006, former Minister of Religion Said Agil Husein al-Munawar was jailed for seven years for corruptly using Mecca pilgrimage money.

Several former or current directors of state enterprises are now also in court or jail.

6. At a lower level, anti-corruption prosecutions are having some effect.

7. In provincial governor elections in West Java and North Sumatra, 'evidently corrupt and inept incumbents' were soundly defeated.

8. In 2008 it was revealed that the central Bank of Indonesia paid large bribes to national parliamentarians debating a new finance bill.

While the deputy governor of the bank was detained, catching 'the big fish' in parliament proved to be more difficult.

President Yudhoyono publicly disapproved of the anti corruption body's method of 'sting' operations.

9. One big issue is political party funding.

Much of the parties' money is thought to come from corrupt government officials.

10. Lawmaker Al Amin Nasution was arrested in 2008 for receiving a bribe from Riau Islands provincial officials in return for persuading the Ministry of Forestry to change the status of some land sites in Bintan Island.

Many Indonesians believe the arrests so far have only exposed the tip of an iceberg.

11. "As long as corruption in core national institutions of the state is addressed only half-heartedly, the prospects for substantial improvement remain dim...

"In order to succeed nationally, the anti-corruption drive must be accompanied by sweeping reforms in the judicial system and the civil service."

2 comments:

aferrismoon said...

The $1m that turned into a $6bn return I think is what was meant by CHANGE. Please can u change this investment into a giant return.

The whole idea that a real-wealth depleting operation like GS can exist is insanity - personally these guys should be forced to have their heads checked.

Blank[Cheque]Fein gets 820,000 a week while the av'ge min wager gets about 16,000 a year - the mans not greedy he's in a wholly occluded mental state and obviously has no idea of the knock-on effect of withdrawing so much tax from real-wealth.
As things get tighter people cut corners and often this will take its toll on the environment, as business try to get some kind of a profit.

The stock market and these betting on digits operations do the most damage to the environment yet people only see the physical effects.

Holding money [ the unit of EXCHANGE] and keeping it out of circulation in the 'real' world leads to social 'gangrene'

The news has banged on how much the airlines have lost in the past week - it doesnt come near the bonuses of $5.4 bn GS congratulated itself lately.


cheers

Anonymous said...

Must Read:
http://www.whowhatwhy.com/the-game-that-goes-on-and-on.html

'THE GAME THAT GOES ON AND ON:
A SWISS BANK, A PRESIDENT, AND THE PERMANENT GOVERNMENT'

about the author Russ Baker: http://russbaker.com/about-whowhatwhy/

 
Site Meter