Company Affair

The effects of corruption are so very predictable.  When leaders are corrupt or when they do not practice due diligence and allow corrupt activities to take place, they harm the members of their society on many levels, as well as the very core of their government.  People with a corrupt government are often living in a state of poverty.  Developing countries tend to be poor, and they tend to have more instances of corruption.  It’s hard to say which comes first, but that is just what has been shown in the past.

Many countries in the world today are actively fighting against corruption, and they will avoid having relations on any level with a country wherein the leaders are corrupt, be it in the banking or financial sectors, the business sectors or the political sector.  This throws them into more of a tailspin, sinking them deeper and deeper into the already horrific level of poverty.  The people lose faith, or a sense of pride in their leaders and ultimately in their country.

They become apathetic.  But then they take a stand.  This is what is happening in Tanzania in the current times.  The leaders of the government of  Tanzania were at one time very well respected by the people of their country.  However that is not the case at the moment.  The ministers of the government were encouraged by the President Kikwete to expose evidence of corruption whenever and where ever they notice it.  So, much has been revealed and now when the ministers speak publicly they are heckled and jeered.

The people are demanding  that now that the leaders know about the corruption, action needs to be taken against those that have accused.  This is happening concurrently with the fact that the media has begun to expose these acts of corruption much more than ever.  Now the government and the ruling party, Chama cha Mapinduzi, are becoming embarrassed at the exposure, as well they should be.  There is dissension within the government.  However, there are organizations within the country who are joining together with the Tanzania Labour Party,  and now that the citizens are taking a stand, perhaps they are on their way towards getting rid of the corruption in Tanzania.

The concept of “know your customer“  is a policy that was enacted by the U.S. Patriot Act.  This policy states simply that companies are now required by law to investigate and to report those customers that they find suspicious of criminal activity.  The way in which computer Internet companies and cable service providers go about conducting that policy is supported by the various sections of the Patriot Act.

In much the same way that Internet companies may request government assistance in the form of wire taps on those that may be breaking the law on their computer, cell phone companies may request the same type of assistance.  The authority for surveillance on roving records is very similar to the wiretaps.  A roving tap allows investigators working for the government to monitor and to intercept all of the communications, either wire or electronic, on a suspect when it relates to the kinds of conduct for which they are being investigated.  This has expanding the investigation capabilities as it allows those investigators the ability to follow the activity no matter where the suspect is at any given moment.

This has been a solution to the problem of previous days, when criminals would go from public phone to public phone in order to avoid detection, and speaking for only brief periods of times to prevent the tapping of the phone calls.  With regards to cell phones, the surveillance capabilities have improved as a result of the September 11 attacks on New York.  In that case, suspects where buying disposable cell phones, using them for a bit and then disposing of them, and then buying new ones.

It was a modern case of going from booth to booth.  This authority for roving taps is not limited to the surveillance of voice activated communications, it extends to the Internet as well, when it is discovered that a suspect is changing there accounts on the Internet each day or some cases, many times in one day, allowing the tracing of the emails that are being sent.  This is all part of the “know your customer” type of investigation techniques being employed currently

There are many allegations of corruption that have been made in Tanzania as of late.  From money laundering, to bribery and extortion.  This comes in the wake of the protests of the citizens of the country as well as an extremely large amount of media coverage in the recent weeks.  The people of the country are agree and the government is embarrassed , as some of the members are they themselves under investigation.  The country is already poor, and all that this serves to do is to make them even more so.  As more countries around the world are refusing to do business in Tanzania, the economic conditions there are just getting worse.  One of the cases involves the Bank of Tanzania, and involves money laundering.

It is the practice of the employees and the directors American banks to make a suspicious activity report if they notice transactions that are out of the ordinary, or if large amounts of cash are deposited in one transaction. It seems that the Bank of Tanzania did not do that. The trouble is that this is not a case of another company doing business with the bank and there being suspicious activity, the suspicious activity occurred within the bank itself.  What has allegedly happened is that large payments have been made out of one of the external debt accounts of the Bank itself.  Some claims are that they are in the amount of two hundred million and some reports say as much as eight hundred million.

The governor of the Bank, v claims that he was not involved and did not know anything about it.  He stated that these were just rumors and not based on an actual investigation.  However, Zakia Meghi is the Minister of Finance for Tanzania and she did not feel the same.  She hired an auditor from outside the bank to review all of the transactions that were made involving the accounts of the Bank.  The are examined the internal control methods and looked whether or not the transactions were variable with documents that support that. The audit was completed last year, however no conclusion has been published as of yet and the press has been having a field day.

Corruption in the countries around the world impacts the lives of the citizens of those countries in many different ways.  In some cases, the effects of corruption comes in the form of the loss of life.  In other situations, it costs the people their money, their health or their freedom.  On the global scale it puts millions and millions of people in a cycle of misery and poverty.  Corruption breeds unrest, politically, socially and economically.  It is at once the cause and the barrier in overcoming extreme poverty and suffering.

In 2008, the gas prices in Guatemala hit the roof.  Businesses and families alike had a very difficult time not only making ends meet, but just simply surviving.  The suppliers however were not suffering, they were profiting in fact, from the act of laundering the petrol through the Mexican borders, a completely and irrefutably illegal act by the way.  Border crossings where the place to conduct bribery, in order to allow empty trucks to pass, the bribes and the empty trucks?  Illegal as well.

While the coverage by the media did note the cheap gas to be found on the border towns, not much was reported on just how that gas got there in the first place, to be sold at often times, temporary gas stations.  Temporary gas stations?  Well these temporary gas stations could somehow afford this cheap gas, when the established and permanent stations, for some reason, could not.  The organizations of Transparency International expressed the concerns of the owners of the permanent stations to the National Customs Office.

They, the IT, were told that all the regulations of customs had been legitimate.  Well, in order for a situation of corruption such as this to come about, what is needed is a coexistence, a symbiotic relationship between greed and permissiveness.  The checks and balances are non-existent, paving the way for obscure decision making, where the desire for wealth by a few, results in illegal activity that directly and negatively affects the lives of the many people in the society, the very definition of corruption.

The FCPA, Foreign Corrupt Practices Act prohibits companies and corporations from conducting business transactions that involve the criminal activities of either collecting or paying of bribes to government officials and political officers in foreign countries.  This is a federal law that was passed by Congress in 1977, and it affects the businesses of the United States in the actions that they partake in at home and abroad.  The bill was passed at the time to address the massive numbers of the cases of bribery and scandal.  At the time several corporations involved were damaged financial as well as the damage caused to their reputation.  This caused unrest in the political arena at home as well as on the international level.

Since its inception the bill has gone through a number of amendments which have served to expand the scope of the policies and the applicability of those regulations.  The amendments have also created a relation between the anti-corruption policies that are in place in the other countries around the world.  The focus on the accountability of business practices following the years of September 11, has led to an increase in the number of actions of enforcement in the investigations of the FCPA.

In 2004 there were five ongoing investigations.  By 2008 that number had increased to ninety one.  The statutes of the FCPA simply prohibits bribery, of officials, officers and employees in any sector of a foreign government.  This also applies to anyone acting on behalf of that government, even those who are still in the process of running for office.  These are known as the anti-bribery provisions.  There are also separate provisions that address the accounting departments of said companies and corporations. Accurate book keeping and internal diligence is required as outlined by the act and required by federal law.  The provisions concerning the accounting departments were added as much of the concealment of and falsification of the records regarding acts of bribery occurs in the accounting departments.

Northumberland is an incredible region of the country of England.  The population is relatively low, and the square miles is just under two thousand.  One of the main towns in the region is Berwick-upon-Tweed, and has ‘changed’ nationalities many times over the last few hundred years, between Scotland and England.  In fact the local soccer team, plays in the football league of Scotland.  One short trip that should be taken on any Berwick holiday is to the Northumberland National Park.  The landscaping in the park is far reaching and beautiful, from the Cheviot Hills to Hadrian’s Wall.  The park is situated in the center of Great Britain, and is a vast wide open space of unspoiled natural wonders.  Archaeological remains sit aside a thriving culture, and the traditional lifestyle of those living in the surrounding villages creates peace and relaxation.  Each section of the park as its own personality and characteristic.

The Cheviot Hills,  which were formed through volcanic activity, are located on the North side of the park, and are filled with rolling waves of the green of the grasslands.  There are ancient ruins and forts, and many rivers running through the hills.  These hills indicate the border between England and Scotland.  One may take a picnic in the Breamish Valley or take a swim in the rivers, but be prepared to share the water with the otters.  A museum is located close by in the National Park center wherein one may view the relics on display, or listen to lectures outlining the history behind the finds.

This is also a popular destination for hikers and mountain bike riders, which offer not only exercise, but trails that lead through historic ruins, for even to this day the imprints in the ground left by the pre-Roman huts are still visible. Those taking the rides or the hikes will also be amazed at the Linhope Spout waterfall.   Two villages sit in the middle of the park, Holystone and Harbottle.  This area is known as the Upper Coquet Valley.  In the western side of the park there are two valleys, that of Redesdale and North Tyne.  This is the region that is still home to the rare species, the red squirrel.  This is a very popular day trip for those living in Newcastle and Berwick, and is one trip that should not be missed on a visit to the UK.

The corruption on the island of Singapore is under constant control in the public and private sectors today.  The leaders of the country have been committed throughout the last two years, in their anti-corruption policies.  The laws created are proving to be sufficient in the deterrence of criminal acts of corruption, laws which apply to all members of the society, regardless of one’s ethnicity, religion, social status or political ties and affiliations.  This was not always the case for the country, but corruption was attacked in 2007, when the agencies that were organized to stop the corruption signed the Memorandum of Understanding.  Members of ASEAN include the Philippines, Cambodia, Thailand and Vietnam.  All countries agreed to cooperate in order to stop corruption and to do their best to continue fighting the recurrence.  The first document of such was signed in 2004 in Indonesia, by Malaysia, Singapore, and Indonesia.  The wonderful aspect is that all those that sign are building mutual and enhanced strength in this ongoing task.

The signing of the document in 2007, was a momentous occasion and signified the beginning of a new chapter for the agencies in the countries that will only continue to advance the communication between the anti-corruption officers and agencies.  Previously in Singapore, in 1959, the government had an enormous task ahead of them.  Corruption was rampant in all of the sectors and the laws of the Corruption Ordinance were weak and insufficient.  Acts of corruption were not acts that were strongly punished, and thus the officers could not effectively attend to their obligations and duties.  Many of the officers themselves were corrupt as they were not well paid, and turned to corruption to support themselves and their families.  However much has changed in Singapore over the last few years, and the country stands testament to what can be accomplished when the agencies are thoroughly staffed with officers of the utmost integrity.