Corporate Corruption News Articles

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A federal drug advisory committee voted 20 to 3 late this afternoon that Avandia, a controversial diabetes drug made by GlaxoSmithKline, raises the risks of heart attacks, but it then voted 22 to 1 that the drug should nonetheless remain on the market. Dr. Clifford J. Rosen, chairman of the committee [said] “there was enough concern on the advisory committee that virtually everybody felt there was risk” of heart attacks from taking Avandia. Patients who have congestive heart failure or a history of cardiovascular disease, or those taking insulin or nitrates should not be given Avandia, Dr. Rosen said. The votes came after an extraordinary meeting in which officials from the Food and Drug Administration, which brought the committee together, openly disagreed with one another about the right course to take. Dr. David Graham, a drug safety officer at the F.D.A., called for the drug’s withdrawal and estimated that its toxic effects on the heart had caused as many as 205,000 heart attacks, strokes and death from 1999 to 2006. For every month that Avandia is sold, he said, another 1,600 to 2,200 patients are likely to suffer from heart attacks and strokes, some of them fatal. Dr. Robert Meyer, director of the office within the F.D.A. that approved Avandia’s initial application, immediately disagreed with Dr. Graham. Dr. Douglas C. Throckmorton, a deputy director of the F.D.A.’s center for drugs, explained at a news conference after the meeting that the split within the agency resulted from the “complexity” of the issue. The open disagreement within the F.D.A. reflects a fierce debate that has occurred among diabetes experts across the country since The New England Journal of Medicine published a study in May suggesting that Avandia increases the risks of heart attacks.

Note: To read a succinct, powerful summary of how drug companies control the regulation of their own industry, click here.

In April 1971, CIA officer John Seabury Thomson paddled his aluminum canoe across the Potomac on his daily commute from his home in Maryland to CIA headquarters in Langley. When he reached the Virginia shore, he noticed a milky substance clouding the waters around Pulp Run. A fierce environmentalist, Thomson traced the pollution to its source: his employer. The murky white discharge was a chemical mash, the residue of thousands of liquefied secrets that the agency had been quietly disposing of in his beloved river. He single-handedly brought the practice to a halt. Nearly four decades later, though, that trickle of secrets would be a tsunami that would capsize Thomson's small craft. Today the nation's obsession with secrecy is redefining public and private institutions and taking a toll on the lives of ordinary citizens. Excessive secrecy is at the root of multiple scandals -- the phantom weapons of mass destruction, the collapse of Enron, the tragedies traced to Firestone tires and the arthritis drug Vioxx, and more. In this self-proclaimed "Information Age," our country is on the brink of becoming a secretocracy, a place where the right to know is being replaced by the need to know. [There] is a confluence of causes behind it, among them the chill wrought by 9/11, industry deregulation, the long dominance of a single political party, fear of litigation and liability and the threat of the Internet. But perhaps most alarming [is] the public's increasing tolerance of secrecy. Without timely information, citizens are reduced to mere residents, and representative government atrophies into a representational image of democracy as illusory as a hologram.

Note: The author of this superb article is Ted Gup. He is a journalism professor at Case Western Reserve University and author of Nation of Secrets: The Threat to Democracy and the American Way of Life.

If you pop a vitamin C tablet in your mouth, it's a good bet it came from China. Indeed, many of the world's vitamins are now made in China. In less than a decade, China has captured 90 percent of the U.S. market for vitamin C, driving almost everyone else out of business. Chinese pharmaceutical companies also have taken over much of the world market in the production of antibiotics, analgesics, enzymes and primary amino acids. According to an industry group, China makes 70 percent of the world's penicillin, 50 percent of its aspirin and 35 percent of its [Tylenol], as well as the bulk of vitamins A, B12, C and E. In the wake of a pet-food scandal, in which adulterated wheat gluten from China led to the deaths of thousands of pets in North America, and other instances of food and toothpaste tampering, China's vitamin producers are reaching out to reassure U.S. consumers that their vitamins are safe. Whether that's true isn't clear, however. Foreign food-safety experts say China's larger companies have reputations to protect. The question is how they maintain quality control. Since U.S. laws don't require food and drug sellers to label products with the country of origin of ingredients, it's impossible for consumers to know where food or supplements are coming from, not to mention what factory produced them.

Pediatrician Rupin Thakkar's first inkling that the pharmaceutical industry was peering over his shoulder ... came in a letter from a drug representative about the generic drops Thakkar prescribes to treat infectious pinkeye. In the letter, the salesperson wrote that Thakkar was causing his patients to miss more days of school than they would if he put them on Vigamox, a more expensive brand-name medicine made by Alcon Laboratories. "My initial thought was 'How does she know what I'm prescribing?' " Thakkar said. "It feels intrusive ... I just feel strongly that medical encounters need to be private." He is not alone. Many doctors object to drugmakers' common practice of contracting with data-mining companies to track exactly which medicines physicians prescribe and in what quantities -- information marketers and salespeople use to fine-tune their efforts. The concerns are not merely about privacy. Proponents say using such detailed data for drug marketing serves mainly to influence physicians to prescribe more expensive medicines, not necessarily to provide the best treatment. "We don't like the practice, and we want it to stop," said Jean Silver-Isenstadt, executive director of the National Physicians Alliance. (Thakkar is on the group's board of directors.) "We think it's a contaminant to the doctor-patient relationship, and it's driving up costs." The American Medical Association makes millions of dollars each year by helping data-mining companies link prescribing data to individual physicians. It does so by licensing access to the AMA Physician Masterfile, a database containing names, birth dates, educational background, specialties and addresses for more than 800,000 doctors.

Note: For more reliable, verifiable information about major corruption in the drug industry, click here.

The pharmaceutical industry is beginning to reap a windfall from a surprisingly lucrative niche market: drugs for poor people. The windfall, which by some estimates could be $2 billion or more this year, is a result of the transfer of millions of low-income people into the new Medicare Part D drug program that went into effect in January. Under that program...the prices paid by insurers, and eventually the taxpayer, for the medications given to those transferred are likely to be higher than what was paid under the federal-state Medicaid programs. Analysts expect it to generate hundreds of millions of additional dollars this year for the drug companies. Drugs tend to be cheaper under the Medicaid programs because the states are the buyers and by law they receive the lowest available prices for drugs. But in creating the federal Part D program, Congress -- in what critics saw as a sop to the drug industry -- barred the government from having a negotiating role. The windfall for the drug makers was made possible by a provision of the 2003 Medicare law that exempts Part D drugs from "best price" rebates that the drug makers have been required to give to the state Medicaid programs. Those rebates are meant to make sure that state Medicaid agencies pay no more than the best prices drug companies offer to any big commercial insurer. Now, under Part D, all sorts of price deals will be negotiated by dozens of Medicare drug plans. The prices will be reported to Medicare, but under a provision of the law pushed by industry lobbyists, they will otherwise be kept secret.

High crude oil prices aren't the only reason you're paying $3.15 for a gallon of regular. For America's giant gasoline refiners...this is a golden age. By California state estimates, refinery profit margins have more than doubled in 2006, though that figure doesn't take into account some key expenses. Meanwhile, oil prices have risen by 14 percent. Oil industry critics hunting for proof of price gouging point to refineries' expanding profit margins as evidence. Critics say the companies deliberately closed many U.S. refineries years ago as a way to drive up their margins. The country now has 144 refineries, down from 324 in 1981. "The refining business used to be pretty lousy, but they took very aggressive actions to correct that," said Tyson Slocum, director of the energy program at the Public Citizen watchdog group. "They're choosing not to build new refineries because it's not in their economic interest." Exact profit margins for the industry are difficult to track, because the companies involved don't reveal financial details. The California Energy Commission publishes a loose weekly estimate, measuring the difference between what the state's 21 refineries pay for crude oil and what they charge for their products. Since the start of the year, that figure has jumped 130 percent, from 30 cents for each gallon of finished gasoline to 69 cents last week. During the same time, the price refiners pay for crude oil has increased 14 percent.

They have always had their critics, but corporations are having an especially hard time making friends of late. Scandals at Enron and WorldCom destroyed thousands of employees' livelihoods, raised hackles about bosses' pay and cast doubt on the reliability of companies' accounts. Big companies such as McDonald's and Wal-Mart have found themselves the targets of scathing films. Labour groups and environmental activists are finding new ways to co-ordinate their attacks on business. But those are just the enemies that companies can see. Even more troubling for many managers is dealing with their critics online -- because, in the ether, they have little idea who the attackers are. One of the main reasons that executives find bloggers so very challenging is because, unlike other 'stakeholders', they rarely belong to well-organised groups. That makes them harder to identify, appease and control. When a company is dealing directly with a labour union or an environmental outfit, its top brass often take the easy route, by co-opting the leaders or paying some sort of Danegeld. Until a couple of decades ago, that meant doling out generous union contracts and sticking shareholders, taxpayers or consumers with the bill. Increasingly, companies are learning that the best defence against these attacks is to take blogs seriously and fix rapidly whatever problems they turn up.

They're tax havens: 70 mostly tiny nations that offer no-tax or low-tax status to the wealthy so they can stash their money. Usually, the process is so secret that it draws little attention. But the sums - and lost tax revenues - are growing so large that the havens are getting new and unaccustomed scrutiny. There are about 3 million shell companies (set up largely to duck taxes) in offshore tax havens, Komisar reckons. These tiny tax havens hold 31 percent of total world assets and 26 percent of the stock of US multinationals.

Drs. Coffey & Humber ... last year cautiously announced that they were alleviating hopeless cases of cancer by means of adrenal cortex extract derived from sheep. The Hearst press recognized the kernel of news in this announcement and puffed it so that thousands of cancer victims abandoned the orthodox treatment of surgery, X-rays and radium, rushed for the sure-cure. The two doctors were amazed, but nonetheless swam with the tide of publicity and patients. They opened auxiliary clinics at Los Angeles and Long Beach. They went before a Senate committee to argue for Government aid for cancer research. They gained a patent for their extract. Mrs. Grace Hammond Conners ... gave Drs. Coffey & Humber her $1,000,000 estate, "The Monastery," at Huntington, L. I. Although Dr. Hartwell & friends who last week opposed opening "The Monastery" as a clinic "do not for a minute question the sincerity of Drs. Coffey and Humber in believing they have something of value," the critics "do question the way they have handled their work." The New York men are certain that their San Francisco colleagues have had no training to qualify for research in "the most complex field that exists" in medicine. They do not believe that adrenal cortex extract will cure cancer or that it has value in cancer treatment. They fear that the Californians will experiment on New York humans, hence want them (or at least their methods; excluded, to remain in California where patients are "abundantly available." This was obviously a campaign to ostracize Drs. Coffey & Humber from Manhattan's vicinity. It was conducted ... "by persons who had their own methods, hospitals and funds."

Note: The doctors eventually not only were denied permission to open a cancer clinic for their promising work, they were stripped of the $1 million dollar estate donated to them (worth about $15 million in current U.S. dollars). For the full, fascinating story, click here.

Bank of America Corp. and other banks are preparing new fees on basic banking services as they try to replace revenue lost to regulatory rules, in a push that is expected to spell an end to free checking accounts for many Americans. Free checking accounts, which have been widely available for more than a decade, have been a boon to middle-class consumers and attracted low-income customers to the banking system for the first time. Customers will likely be required to pay new monthly maintenance fees on the most basic accounts that don't generate a lot of activity. To avoid a fee, customers will have to maintain certain account balances or frequently use other banking services, such as credit and debit cards, automated teller machines and online accounts. Some consumer advocates warn the new fees will whack consumers who now manage their bank accounts to avoid such charges. The transformation of checking accounts comes at a time when banks are bouncing back from the steepest financial losses in a generation and are facing new regulations. To accelerate that recovery and recoup losses from new banking rules, financial institutions are increasingly leaning on customers who don't now generate enough revenue for the bank.

Note: Why hasn't the federal government protected consumers from this sort of response by the banking industry to new regulations imposed after the massive taxpayer bailout of these failing corporations?

Last year, officials at the Department of Homeland Security's counter-narcotics office took a shortcut that has become common at federal agencies: They hired help through a no-bid contract. And the firm they hired showed them how to do it. A contract worth up to $579,000 was awarded to the consultant's firm in September. Though small by government standards, the counter-narcotics contract illustrates the government's steady move away from relying on competition to secure the best deals for products and services. A recent congressional report estimated that federal spending on contracts awarded without "full and open" competition has tripled, to $207 billion, since 2000, with a $60 billion increase last year alone. The category includes deals in which officials take advantage of provisions allowing them to sidestep competition for speed and convenience and cases in which the government sharply limits the number of bidders or expands work under open-ended contracts. Government auditors say the result is often higher prices for taxpayers and an undue reliance on a limited number of contractors. "The rapid growth in no-bid and limited-competition contracts has made full and open competition the exception, not the rule," according to the report, by the House Oversight and Government Reform Committee. Keith Ashdown, chief investigator at Taxpayers for Common Sense, a nonpartisan watchdog group, said that in many cases, officials are simply choosing favored contractors as part of a "club mentality." "Contracting officials are throwing out decades of work to develop fair and sensible rules to promote competition," Ashdown said. "Government officials are skirting the rules in favor of expediency or their favored contractors."

In an unusual effort targeting a single chemical, several dozen scientists on Thursday issued a strongly worded consensus statement warning that an estrogen-like compound in plastic is likely causing an array of serious reproductive disorders in people. The compound, bisphenol A or BPA, is one of the highest-volume chemicals in the world and has found its way into the bodies of most human beings. Used to make hard plastic, BPA can seep from beverage containers and other materials. It is used in all polycarbonate plastic baby bottles as well as ... large water cooler containers, sports bottles and microwave oven dishes, along with canned food liners and some dental sealants for children. The scientists — including four from federal health agencies — reviewed about 700 studies before concluding that people are exposed to levels of the chemical exceeding those that harm lab animals. Infants and fetuses are most vulnerable, they said. The statement, published online by the journal Reproductive Toxicology, was accompanied by a new study from researchers from the National Institutes of Health that found uterine damage in newborn animals exposed to BPA. That damage is a possible predictor of reproductive diseases in women, including fibroids, endometriosis, cystic ovaries and cancers. It is the first time BPA has been linked to disorders of the female reproductive tract, although earlier studies have found early-stage prostate and breast cancer and decreased sperm counts in animals exposed to low doses. The scientists' statement and the new study — accompanied by five scientific reviews summarizing the 700 studies — intensify a contentious debate over whether the plastic compound poses a public threat. So far no government agency here or abroad has restricted its use.

In the spring of 2001, a ... rice farmer named Jacko Garrett watched a fleet of 18-wheelers haul away truckloads of rice that he had grown with great care. "It just bothers me so bad," Garrett said. "I'm sitting here trying to find food to feed people, and I've got to bury five million pounds of rice." Garrett's rice was genetically modified, part of an experiment that was brought to an abrupt halt by its sponsor, a ... biotechnology company called Aventis Crop Science. The company had contracted with a handful of farmers to grow the rice, which was known as Liberty Link because its genes had been altered to resist a weed killer called Liberty, also made by Aventis. In January 2006, small amounts of genetically engineered rice turned up in a shipment that was tested ... by a French customer of Riceland Foods. Because no transgenic rice is grown commercially in the U.S., the people at Riceland were stunned. Then came another shock. Testing revealed that the genetically modified rice contained a strain of Liberty Link that had not been approved for human consumption. What's more, trace amounts of the Liberty Link had mysteriously made their way into the commercial rice supply in all five of the Southern states where long-grain rice is grown. The tainted rice was everywhere. If in the past year or so you or your family ate Uncle Ben's, Rice Krispies, or Gerber's, or drank a Budweiser ... you probably ingested a little bit of Liberty Link, with the unapproved gene. Last November, over the howls of anti-GMO activists, the USDA retroactively approved the Liberty Link rice, known as LL601. The department said the genes that it approved are similar to those inserted for years into canola and corn, with no apparent ill effects.

Note: To read a ten-page summary of Seeds of Deception, a ground-breaking exposé of the dangers of the genetic engineering of foods, click here.

AT&T Inc. said on Wednesday it was revising its privacy policy, explaining to customers that it owns their phone records and can hand them over to law enforcers if necessary. The changes...come at a time when AT&T and other phone companies face lawsuits claiming they aided a U.S. government domestic spying program by giving the National Security Agency call records of millions of customers without their permission. The new policy, unlike the old one, spells out the fact that AT&T...customer information constitutes "business records that are owned by AT&T. As such, AT&T may disclose such records to protect its legitimate business interests, safeguard others, or respond to legal process." The earlier policy had simply said that...the company could share customer information to "respond to subpoenas, court orders or other legal process, to the extent required and/or permitted by law." Under the new policy...the company also said that it would track viewing information for customers of a television service it is developing in order to help it make recommendations to customers based on their viewing habits. It also said that before customers use its services they must agree to the policy, an element that was not in its previous guidelines.

A congressional task force called Thursday for a speedy resolution to a southwest Florida election dispute that questions the accuracy of ATM-style voting machines. Democrat Christine Jennings claims that touch-screen voting machines in Sarasota County failed to register up to 18,000 votes. Republican Vern Buchanan was declared the winner by 369 votes after two recounts and a state audit found no problems. GAO investigators will gather information on Sarasota County's voting systems, analyze the 18,000 so-called ''undervotes,'' review tests and audits done after the election and determine if more tests are needed. Jennings said Thursday the she was pleased even though the approach brings her no closer to gaining access to hardware and software that the machines' maker, Omaha, Neb.-based Election Systems & Software Inc., says is a trade secret.

Note: The software in electronic voting machines is considered proprietary information, kept secret from Congress, the courts and even the President. Yet any computer programmer will tell you that this software can be manipulated. To join in demanding transparency in our elections process, contact your political representatives by clicking here. For more reliable information on this issue vital to democracy, click here.

Dubai Ports World, the firm at the center of the controversy, announced today that it would give up its bid to manage U.S. ports, agreeing to transfer the contracts to a “U.S. entity." Yet while one Dubai company may be giving up on U.S. ports, another one shows no signs of...giving up a contract with the Navy to provide shore services for vessels in the Middle East. The firm, Inchcape Shipping Services (ISS)...was sold to a Dubai government investment vehicle for $285 million. Why is a Dubai shipping services company doing business with the Pentagon when handing over U.S. port operations to the emirate would supposedly compromise national security? ISS “will be responsible for providing all the logistics requirements of U.S. Navy and Coast Guard ships in ports throughout the [Middle East] region.” The release also notes that ISS may be asked to provide services for U.S. military training exercises and “contingency operations inland.” ISS’s partner for those services? None other than KBR, the division of Halliburton -- Vice President Dick Cheney’s old firm -- that has won billions of dollars in contracts for the Iraq war and reconstruction. Ironically, Halliburton's name has come up as a possible candidate to be the "U.S. entity" to take over the U.S. ports management from Dubai Ports World.

The Minnesota Commerce Department on Thursday announced plans to fine a gas station chain $140,000 for repeatedly selling gas below the state's legal minimum price. The fine against Midwest Oil of Minnesota is twice as large as any imposed on a company since 2001, when the state established a formula based on wholesale prices, fees and taxes to determine a daily floor for gas prices. The price law was intended to prevent large oil companies from driving smaller competitors out of business, but some critics argue it fails to protect consumers. According to the Commerce Department, the Midwest-owned stations in Anoka, Oakdale and Albert Lea sold gas below the minimum price on 293 days in 2005. Kevin Murphy, deputy commissioner of the department, called the violations "willful, continuing, and egregious and warrant a substantial penalty."

An epic throw-down happened Thursday on Capitol Hill. The topic: the Consumer Financial Protection Bureau, the agency created in the wake of the 2007-08 financial crisis. The Trump administration's acting director, Mick Mulvaney ... believes the bureau's powers are excessive. Sen. Elizabeth Warren ... led the creation of the bureau to protect consumers from abuses by everything from big banks to student loan providers to fly-by-night loan sharks. Mulvaney ... calls the bureau Warren's "baby." But Democrats say that over the past five months, he has done a terrible job of taking care of it. Back when he was a Republican congressman, Mulvaney sponsored legislation that would have abolished the bureau. Since its creation, the bureau has returned a total of $12 billion to consumers by clawing back money from companies that cheated them. Thursday's hearing was part of Mulvaney's mandated semiannual report to Congress on the activities of the CFPB. In a hearing ... New York Democrat Carolyn Maloney said the bureau used to bring several enforcement actions a month against financial companies. She pressed Mulvaney: "So let me ask you how many enforcement actions has the bureau initiated since you took over?" Mulvaney: "We have initiated none since I've been there." Mulvaney ... is asking lawmakers to put the bureau's budget under the control of Congress. The bureau ... is funded by the Federal Reserve instead of by Congress, a move designed to shield it from political influence.

Note: In 2016, Wells Fargo paid a $100 million fine to the Consumer Financial Protection Bureau after getting caught ripping off millions of customers. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.

This spring, President Obama and Republican leaders in Congress want to use an outdated process used to pass the North American Free Trade Agreement more than 20 years ago — a rule called “fast track” — to force ... passage of the giant Trans-Pacific Partnership, or TPP, trade deal. A fast-tracked TPP would lock in a rigged set of economic rules, lasting potentially forever, before most Americans — let alone some members of Congress — have had a chance to understand it thoroughly. It would be a grave mistake for Congress to authorize fast-tracking this giant trade deal. We now know that NAFTA [has] contributed to the huge U.S. trade deficits. We now import about $500 billion more in goods and services each year than we export. Following NAFTA with the Trans-Pacific Partnership is like turning a bad television show into a terrible movie. As for the problems with the TPP? What's been leaked about its proposals reveals, for example, that the pharmaceutical industry would get stronger patent protections, delaying cheaper generic versions of drugs. The deal also gives global corporations an international tribunal of private attorneys, outside any nation's legal system, that can order compensation for lost expected profits resulting from a nation's regulations, including our own. These extraordinary rights for corporations put governments on the defensive over legitimate public health or environmental rules.

Note: The above article was co-authored by former U.S. Secretary of Labor Robert Reich, and current president of the AFL-CIO Richard Trumka. For more, see this article, or watch the two minute video Robert Reich made to educate the public about the dangers of the TPP.

As leak enthusiasts go, few resemble Julian Assange less than Daniel Domscheit-Berg. The wide-eyed and softspoken German left WikiLeaks in September to start his own leak-focused organization known as OpenLeaks. Like its parent organization, OpenLeaks will solicit secret documents from leakers in government and business. But instead of publishing the leaks on its site — a strategy that has made WikiLeaks the target of cyber- and legal attacks since it began posting a quarter-million secret cables from the U.S. State Department last month — OpenLeaks will function as a secure tip box that passes leaked files on to whatever media outlet or NGO the leaker chooses. OpenLeaks is just one of a bumper crop of WikiLeaks-inspired sites popping up across the globe, borrowing various pieces of the original site's model of anonymous submissions and online publishing. That's good news for WikiLeaks, too, as Assange himself said in an interview last month. "The supply of leaks is very large," he said. "It's helpful for us to have more people in this industry. It's protective to us." In the long term, Domscheit-Berg argues, WikiLeaks' greatest impact may not be any particular document release but the entire movement of second-generation sites like OpenLeaks that it has spawned.

Important Note: Explore our full index to revealing excerpts of key 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.