Corporate Corruption Media Articles

Excerpts of Key Corporate Corruption Media Articles in Major Media

Below are key excerpts of revealing news articles on corporate corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

The world's biggest pharmaceutical company hired investigators to unearth evidence of corruption against the Nigerian attorney general in order to persuade him to drop legal action over a controversial drug trial involving children with meningitis, according to a leaked US embassy cable. Pfizer was sued by the Nigerian state and federal authorities, who claimed that children were harmed by a new antibiotic, Trovan, during the trial, which took place in the middle of a meningitis epidemic of unprecedented scale in Kano in the north of Nigeria in 1996. But the cable suggests that the US drug giant did not want to pay out to settle the two cases – one civil and one criminal – brought by the Nigerian federal government. The cable reports a meeting between Pfizer's country manager, Enrico Liggeri, and US officials at the Abuja embassy on 9 April 2009. It states: "According to Liggeri, Pfizer had hired investigators to uncover corruption links to federal attorney general Michael Aondoakaa to expose him and put pressure on him to drop the federal cases. He said Pfizer's investigators were passing this information to local media." The cable ... continues: "A series of damaging articles detailing Aondoakaa's 'alleged' corruption ties were published in February and March. Liggeri contended that Pfizer had much more damaging information on Aondoakaa and that Aondoakaa's cronies were pressuring him to drop the suit for fear of further negative articles."

Note: For more on this revealing case, see the New York Times article available here.

Stricken Allied Irish Banks is preparing to hand out €40m (Ł34m) of bonuses next week – despite being on the brink of receiving another emergency bailout from the Irish government. As many as 2,400 bankers in its Dublin capital markets division are to receive the payments on 17 December under agreements struck with the bank in 2008. The bank, 19% owned by Ireland's taxpayers but expected to reach 95% state-ownership, had originally been blocked from making the payments under one of the government's bailout programmes. But legal action by a trader, John Foy, over a deferred €161,000 bonus awarded in 2008 has led the bank to conclude it will need to pay bonuses to many of the staff to whom they were awarded for that year. The bonuses are being handed out at a time when the government is instigating four years of tax rises and brutal cuts to benefits. Bankers are receiving much of the blame for forcing Ireland to take international assistance and implement the austerity budgetary measures.

Note: For lots more from reliable sources on the worldwide bailout by taxpayers of failed banks, click here.

Bank of America will pay $137.3 million to settle allegations that it defrauded schools, hospitals and dozens of other state and local government organizations, federal officials said [on December 7]. The settlement stems from a long-running investigation into misconduct in the municipal bond business that raises money for localities to pay for public services. Bank of America is accused of depriving local organizations of millions of dollars by engaging in illegal behavior when investing the proceeds of municipal bond sales. The bank is paying $107.8 million to these organizations in restitution, $25 million to the Internal Revenue Service for abuses related to the tax-free status of municipal bonds and $4.5 million to state attorneys general for costs related to their investigations. A number of bankers and other professionals from a variety of financial firms have pleaded guilty in the probe, which centered on companies conspiring to win municipal securities business in violation of statutes requiring fair competition. The banking giant is accused of taking part in a conspiracy in which it and other banks paid kickbacks to win the business of municipalities seeking to invest the proceeds of bond sales before the money is ready to be spent.

Note: For key reports on financial fraud from reliable sources, click here.

Nigeria's anti-corruption agency on [December 7] charged former U.S. Vice President Dick Cheney over a bribery scheme involving oil services firm Halliburton Co. during time he served as its top official. The charges stem from a case involving as much as $180 million allegedly paid in bribes to Nigerian officials, said Femi Babafemi, a spokesman for the Economic and Financial Crimes Commission. Halliburton and other firms allegedly paid the bribes to win a contract to build a $6 billion liquefied natural gas plant in Nigeria's oil-rich southern delta, he said. The Halliburton case involves its former subsidiary KBR, a major engineering and construction services firm based in Houston. In February 2009, KBR Inc. pleaded guilty in U.S. federal court to authorizing and paying bribes from 1995 to 2004 for the plant contracts in Nigeria. The spokesman said each charge in the 16-count indictment carried as much as three years in prison. Nigeria, a major oil supplier to the U.S., long has been considered by analysts and watchdog groups as having one of the world's most corrupt governments.

Note: For lots more from major media sources on government and corporate corruption, click here and here.

There's a brief scene in "Inside Job," the locally produced documentary on the Great Financial Meltdown, in which a colleague of the head of the Commodity Futures Trading Commission in 1997 describes how "blood drained from her face" after receiving a phoned-in tongue-lashing from deputy Treasury Secretary Larry Summers. The target of Summers' wrath was Brooksley Born, ... the first female president of the Stanford Law Review and a recognized legal expert in the area of complex financial instruments. Her crime: Born had the temerity to push for regulation of the increasingly wild trading in derivatives, which, as we learned a decade later, helped bring the U.S. economy, and much of the world's, to its knees. Summers, with 13 bankers in his office, told Born to get off it "in a very grueling fashion," said the colleague. The story is told in much more detail in All the Devils are Here, the latest, but eminently worthwhile, book on the roots of the crisis, by Bethany McLean and ... Joe Nocera. It makes for dispiriting, even appalling, reading. Responding to growing evidence of manipulation and fraud in unregulated derivatives trading - "the hippopotamus under the rug," as Born and others referred to it - Born suggested the commission should perhaps be given some sort of oversight. She had a 33-page policy paper drawn up, full of questions and suggestions, like, for example, whether establishing a public exchange for derivatives might not be a bad idea. Responding to the policy paper, Summers, "screaming at her," according to the book, told Born the bankers sitting in his office "threatened to move their derivatives business to London," if she didn't stop.

Note: For key reports on financial fraud from reliable sources, click here.

The newly created independent political groups known as super PACs, which raised and spent millions of dollars on last month's elections, drew much of their funding from private-equity partners and others in the financial industry, according to new financial disclosure reports. The 72 super PACs, all formed this year, together spent $83.7 million on the election. The figures provide the best indication yet of the impact of recent Supreme Court decisions that opened the door for wealthy individuals and corporations to give unlimited contributions. The financial disclosure reports also underscore the extent to which the flow of corporate money will be tied to political goals. Private-equity partners and hedge fund managers, for example, have a substantial stake in several issues before Congress, primarily the taxes they pay on their earnings. "Super PACs provide a means for the super wealthy to have even more influence and an even greater voice in the political process," said Meredith McGehee, a lobbyist for the Campaign Legal Center, which advocates for tighter regulation of money in politics.

Note: For key reports on growing threats to the US electoral process, click here.

New disclosures show the Federal Reserve rushed trillions of dollars in emergency aid not just to Wall Street but also to ... foreign-owned banks in 2008 and 2009. The central bank's aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada. The biggest users of the Fed lending programs were some of the world's largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain's Barclays, according to more than 21,000 loan records released [December 1] under new financial regulatory legislation. The data reveal banks turning to the Fed for help almost daily in the fall of 2008 as the central bank lowered lending standards and extended relief to all kinds of institutions it had never assisted before. The extent of the lending to major banks - and the generous terms of some of those deals - heighten the political peril for a central bank that is already under the gun for a wide range of actions, including a recent decision to try to stimulate the economy by buying $600 billion in U.S. bonds. "The American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America," said Sen. Bernard Sanders (I-Vt.), a longtime Fed critic whose provision in the Wall Street regulatory overhaul required the new disclosures. "Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations." The Fed launched emergency programs totaling $3.3 trillion in aid, a figure reached by adding up the peak amount of lending in each program.

Note: The figure of $3.3 trillion cited in this article was simply the peak amount lent at one moment in time; the total amount lent by the Fed over the years covered by the data exceeded $20 trillion. For analysis of this data release, click here.

As a result of an amendment that I was able to include in the Wall Street reform bill, we have begun to lift the veil of secrecy at the Fed. It is unfortunate that it took this long, and it is a shame that the biggest banks in America and Mr. Bernanke fought to keep this secret from the American public every step of the way. But, the details on this bailout are now on the Federal Reserve's website. This is a major victory for the American taxpayer and for transparency in government. After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed's multi-trillion-dollar bailout of Wall Street and corporate America. What have we learned so far from the disclosure of more than 21,000 transactions? We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country.

Note: The author is Senator Bernie Sanders (I-VT). For key reports from reliable sources on the massive federal bailout of the biggest banks and financial firms, click here.

Mr. SANDERS. Mr. President, there is a war going on in this country, and I am not referring to the wars in Iraq or Afghanistan. I am talking about a war being waged by some of the wealthiest and most powerful people in this country against the working families of the United States of America, against the disappearing and shrinking middle class of our country. The reality is, many of the Nation's billionaires are on the warpath. They want more, more, more. Their greed has no end, and apparently there is very little concern for our country or for the people of this country if it gets in the way of the accumulation of more and more wealth and more and more power. The percentage of income going to the top 1 percent has nearly tripled since the 1970s. In the mid-1970s, the top 1 percent earned about 8 percent of all income. In the 1980s, that figure jumped to 14 percent. In the late 1990s, that 1 percent earned about 19 percent. And today, as the middle class collapses, the top 1 percent earns 23 1/2 percent of all income--more than the bottom 50 percent. Today, if you can believe it, the top one-tenth of 1 percent earns about 12 cents of every dollar earned in America.

Note: To see a video of this amazing speech by courageous Senator Bernie Sanders (Independent), click here.

Early next year, Julian Assange says, a major American bank will suddenly find itself turned inside out. Tens of thousands of its internal documents will be exposed on Wikileaks.org. The data dump will lay bare the finance firm’s secrets on the Web for every customer, every competitor, every regulator to examine and pass judgment on. When? Which bank? What documents? Cagey as always, Assange won’t say. He compares what he is ready to unleash to the damning e-mails that poured out of the Enron trial: a comprehensive vivisection of corporate bad behavior. “You could call it the ecosystem of corruption,” he says, refusing to characterize the coming release in more detail. Does Assange have unpublished, damaging documents on pharmaceutical companies? Yes, he says. Finance? Yes, many more than the single bank scandal we’ve been discussing. Energy? Plenty, on everything from BP to an Albanian oil firm that he says attempted to sabotage its competitors’ wells. Like informational IEDs, these damaging revelations can be detonated at will. Long gone are the days when Daniel Ellsberg had to photocopy thousands of Vietnam War documents to leak the Pentagon Papers. Modern whistleblowers ... can zip up their troves of incriminating documents on a laptop, USB stick or portable hard drive, spirit them out through personal e-mail accounts or online drop sites—or simply submit them directly to WikiLeaks.

Note: For lots more from reliable sources on government and corporate secrecy, click here.

The Obama administration has doled out about $2 billion in stimulus money to some of the nation's biggest polluters while granting them exemptions from a basic form of environmental oversight, a Center for Public Integrity investigation has found. The administration has awarded more than 179,000 "categorical exclusions" to stimulus projects funded by federal agencies, freeing the projects from review under the National Environmental Policy Act, or NEPA. Officials said they did not consider companies' pollution records in deciding whether to grant the waivers. The projects include: - An electrical-grid upgrade project in Kansas led by Westar Energy, the state's largest coal-burning utility, which settled a major air pollution case by paying half a billion dollars in penalties and remediation costs. - A project to create clean-burning biofuel from seaweed led by chemical giant DuPont, which received $8.9 million in stimulus funds in February. In all, about three dozen of the country's biggest polluters with past environmental problems won NEPA exemptions for the stimulus grants totaling $2 billion from the Energy Department - about 6 percent of the department's total money awarded so far.

Note: For lots more from reliable sources on government corruption, click here.

The class war that no one wants to talk about continues unabated. Even as millions of out-of-work and otherwise struggling Americans are tightening their belts for the holidays, the nation’s elite are lacing up their dancing shoes and partying like royalty as the millions and billions keep rolling in. Recessions are for the little people, not for the corporate chiefs and the titans of Wall Street who are at the heart of the American aristocracy. They have waged economic warfare against everybody else and are winning big time. The ranks of the poor may be swelling and families forced out of their foreclosed homes may be enduring a nightmarish holiday season, but American companies have just experienced their most profitable quarter ever. The corporate fat cats are becoming alarmingly rotund. Their profits have surged over the past seven quarters at a pace that is among the fastest ever seen, and they can barely contain their glee. On the same day that The Times ran its article about [record corporate] profits, it ran a piece on the front page that carried the headline: “With a Swagger, Wallets Out, Wall Street Dares to Celebrate.” Anyone who thinks there is something beneficial in this vast disconnect between the fortunes of the American elite and those of the struggling masses is just silly. It’s not even good for the elite. The rich may think that the public won’t ever turn against them. But to hold that belief, you have to ignore the turbulent history of the 1930s.

Note: For many reports from reliable souces on corporate profiteering, click here.

The nation’s workers may be struggling, but American companies just had their best quarter ever. American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report. That is the highest figure recorded since the government began keeping track over 60 years ago. The next-highest annual corporate profits level on record was in the third quarter of 2006, when they were $1.655 trillion. Corporate profits have been doing extremely well for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history. As a share of gross domestic product, corporate profits also have been increasing, and they now represent 11.2 percent of total output. That is the highest share since the fourth quarter of 2006, when they accounted for 11.7 percent of output.

Note: Long-term unemployment is at a record high, yet corporations are raking in record profits. With record profits, why aren't corporations hiring more new employees? For many reports from reliable souces on corporate profiteering, click here.

About 48 of the more than 1,730 California doctors who received money from pharmaceutical companies over the past 21 months have been the subject of disciplinary action, a database compiled by the investigative news organization ProPublica found. While that represents less than 3 percent of the California doctors who take pharmaceutical money, the fact that drug companies are paying those doctors - some of whom have multiple disciplinary actions - for their expertise calls into question how closely these companies vet the physicians who serve as the spokespeople for their drugs. California doctors have received $28.6 million from top pharmaceutical companies since 2009, with at least three physicians collecting more than $200,000 and 36 others making more than $100,000 for promoting drug firm products. That cash flowing from drug companies to doctors has raised ethical concerns from some observers. "If they're getting as much money from pharmaceutical companies as they do for being a doctor, what are they really? Are they working for a pharmaceutical company, or are they being a doctor?" asked Lisa Bero, a pharmacy professor at UCSF who studies conflicts of interest in medicine and research.

Note: For a detailed analysis of corruption in the pharmaceutical industry by a highly-respected doctor, click here.

A growing pilot and passenger revolt over full-body scans and what many consider intrusive pat-downs couldn't have come at a worse time for the nation's air travel system. Thanksgiving, the busiest travel time of the year, is less than two weeks away. Grassroots groups are urging travelers to either not fly or to protest by opting out of the full-body scanners and undergo time-consuming pat-downs instead. Some pilots, passengers and flight attendants have chosen to opt out of the revealing scans. One online group, National Opt Out Day calls for a day of protest against the scanners on Wednesday, November 24, the busiest travel day of the year. Another group argues the TSA should remove the scanners from all airports. The Electronic Privacy Information Center (EPIC)... is taking legal action. Pilots' unions for US Airways and American Airlines are urging their members to avoid full-body scanning at airport security checkpoints, citing health risks and concerns about intrusiveness and security officer behavior. "Pilots should NOT submit to AIT (Advanced Imaging Technology) screening," wrote Capt. Mike Cleary, president of the U.S. Airline Pilots Association. "Frequent exposure to TSA-operated scanner devices may subject pilots to significant health risks," Cleary wrote. The website We Won't Fly urgers travelers to "Act now. Travel with Dignity."

Note: For a powerful, one-minute video showing just how invasive these searches are, click here.

The Department of Health is putting the fast food companies McDonald's and KFC and processed food and drink manufacturers such as PepsiCo, Kellogg's, Unilever, Mars and Diageo at the heart of writing government policy on obesity, alcohol and diet-related disease. In an overhaul of public health, said by [critics] to be the equivalent of handing smoking policy over to the tobacco industry, health secretary Andrew Lansley has set up five "responsibility deal" networks with business, co-chaired by ministers, to come up with policies. The groups are dominated by food and alcohol industry members, who have been invited to suggest measures to tackle public health crises. The alcohol responsibility deal network is chaired by the head of the lobby group the Wine and Spirit Trade Association. The food network to tackle diet and health problems includes processed food manufacturers, fast food companies, and Compass, the catering company. The food deal's sub-group on calories is chaired by PepsiCo, owner of Walkers crisps. The leading supermarkets are an equally strong presence. In early meetings, these commercial partners have been invited to draft priorities and identify barriers, such as EU legislation, that they would like removed. They have been assured by Lansley that he wants to explore voluntary not regulatory approaches, and to support them in removing obstacles.

Note: For lots more from reliable sources on corporate and government corruption, click here and here.

In a rare move, the Justice Department on Tuesday announced that it had charged a former vice president and top lawyer for the British drug giant GlaxoSmithKline with making false statements and obstructing a federal investigation into illegal marketing of the antidepressant Wellbutrin for weight loss. "This is absolutely precedent-setting – this is really going to set people's hair on fire," said Douglas B. Farquhar, a Washington lawyer. "This is indicative of the F.D.A. and Justice strategy to go after the very top-ranking managing officials at regulated companies." The indictment accuses the Glaxo official, Lauren C. Stevens of Durham, N.C., of lying to the Food and Drug Administration in 2003, by writing letters, as associate general counsel, denying that doctors speaking at company events had promoted Wellbutrin for uses not approved by the agency. Ms. Stevens "made false statements and withheld documents she recognized as incriminating," including slides the F.D.A. had sought during its investigation, the indictment stated. The company was cooperating fully with a federal investigation into allegations of illegal sales and marketing of Wellbutrin. Last year, it set aside $400 million to resolve the case, which is still pending. Two weeks ago, in an unrelated case, GlaxoSmithKline agreed to pay $750 million to the government to settle civil and criminal complaints that it sold tainted or ineffective products from a large manufacturing facility in Puerto Rico.

Note: Even with fines in the hundreds of millions of dollars assessed to many of the large pharmaceuticals, why isn't more being done? See what one of the top doctors in the US revealed about corruption in health care at this link.

South Africa's largest private medical group has pleaded guilty to performing illegal kidney transplant operations at one of its hospitals. The medical group Netcare admitted that children were recruited to donate their organs, and said the hospital had wrongly profited from the operations. The charges related to more than 100 operations carried out at the hospital in Durban between 2001 and 2003. Poor donors, often from Brazil, were flown in and given thousands of dollars to have a kidney removed. These were then given to those in need, who were often wealthy Israelis. Several of those directly involved pleaded guilty at the time, but Netcare - which runs more than 50 hospitals in South Africa - had until now refused to accept responsibility. Things began to change when prosecutors brought charges against Netcare's chief executive and the company made a plea bargain. In return for those charges being dropped, Netcare accepted that some of its employees had known that the kidney donors and recipients had not been related. It acknowledged that "payments must have been made to the donors for their kidneys, and that certain of the kidney donors were minors at the time that their kidneys were removed. Certain employees participated in these illegalities, and (the hospital) wrongly benefited from the proceeds."

Note: For key reports from major media sources on corporate corruption and criminality, click here

Two of the largest pilots' unions in the nation are urging commercial pilots to rebel against current airport screening rules. In late October, the Transport Security Administration implemented more invasive patdown rules. Travelers and pilots were faced with a new dilemma -- have a revealing, full-body scan or what some are calling an X-rated patdown. Pilots are piping mad over the options, saying the full-body scanners emit dangerous levels of radiation and that the alternative public patdown is disgraceful for a pilot in uniform. Some pilots have said they felt so violated after a patdown, they were unfit to fly. The patdowns, implemented Oct. 29, allow TSA officers to pat down passengers with the front of their hands, instead of the backs of their hands. A security expert who demonstrated the new procedure on a mannequin for ABC News explained the changes. "You go down the body and up to the breast portion," said Charles Slepian of the Foreseeable Risk Analysis Center. "If it's a female passenger, you're going to see if there's anything in the bra." The new patdown protocol could be used at any of the nation's 450 airports on passengers who require additional screening. Tens of thousands of passengers are submitted to patdowns and full-body scanners every day. More than 300 full-body scanners are being used at 65 airports across the country.

Note: And what about the general public having to submit to being groped?

Novartis AG plans to seek regulatory approval within 18 months for a pioneering tablet containing an embedded microchip, bringing the concept of "smart-pill" technology a step closer. The initial program will use one of the Swiss firm's established drugs taken by transplant patients to avoid organ rejection. But Trevor Mundel, global head of development, believes the concept can be applied to many other pills. Novartis agreed in January to spend $24 million to secure access to chip-in-a-pill technology developed by privately owned Proteus Biomedical of Redwood City, California, putting it ahead of rivals. The biotech start-up's ingestible chips are activated by stomach acid and send information to a small patch worn on the patient's skin, which can transmit data to a smartphone or send it over the Internet to a doctor. Because the tiny chips are added to existing drugs, Novartis does not expect to have to conduct full-scale clinical trials to prove the new products work. Instead, it aims to do so-called bioequivalence tests to show they are the same as the original. A bigger issue may be what checks should be put in place to protect patients' personal medical data as it is transmitted from inside their bodies by wireless and Bluetooth.

Note: It's interesting that Fox News was the only major media to pick up this revealing Reuters story. This article seriously underplays the privacy concerns raised by this new corporate strategy. For more on this, click here. For many key reports on corporate and governmental threats to privacy, click here. For more on the dangers of microchips from reliable sources, click here.

Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.