Corporate Corruption News Articles

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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.

AT&T Inc. and Verizon Wireless, the biggest U.S. mobile carriers, are planning a venture to displace credit and debit cards with smartphones, posing a new threat to Visa Inc. and MasterCard Inc., three people with direct knowledge of the plan said. The trial would be the carriers’ biggest effort to spur mobile payments in the U.S. and supplant more than 1 billion plastic cards in American wallets. Smartphones have encroached on tasks ranging from Web browsing to street navigation and now may help the phone companies compete with San Francisco-based Visa and MasterCard, the world’s biggest payments networks. The service, similar to those already available in Japan, Turkey and the U.K., would use contactless technology to complete purchases in stores. They’d be processed through Discover’s payments network, currently the fourth-biggest behind Visa, MasterCard and American Express Co. Barclays would be the bank helping to manage the accounts, said the people, who requested anonymity because of confidentiality agreements. Retailers may be eager to help another network after years of fighting over transaction fees set by Visa and MasterCard.

Marcy Kaptur of Ohio is the longest-serving Democratic congresswoman in U.S. history. Her district, stretching along the shore of Lake Erie from west of Cleveland to Toledo, faces an epidemic of home foreclosures and 11.5 percent unemployment. Now, she is recommending a radical foreclosure solution from the floor of the U.S. Congress: "So I say to the American people, you be squatters in your own homes. Don't you leave." She criticizes the bailout's failure to protect homeowners facing foreclosure. These mortgages were made, then bundled into securities and sold and resold repeatedly, by the very Wall Street banks that are now benefiting from [a government bailout]. The banks foreclosing on families very often can't locate the actual loan note that binds the homeowner to the bad loan. "Produce the note," Kaptur recommends [to] those facing foreclosure demands of the banks. "[P]ossession is nine-tenths of the law," Rep. Kaptur [said]. "Therefore, stay in your property. Get proper legal representation ... [if] Wall Street cannot produce the deed nor the mortgage audit trail ... you should stay in your home. It is your castle. It's more than a piece of property. ... If you look at the bad paper, if you look at where there's trouble, 95 to 98 percent of the paper really has moved to five institutions: JPMorgan Chase, Bank of America, Wachovia, Citigroup and HSBC. They have this country held by the neck."

Note: Why is it that with the trillions of dollars given by the U.S. government to prop up banks who used shady loan practices, so few homeowners facing foreclosure have received any assistance? For many revealing reports on the realities of the Wall Street bailout, click here.

A federal panel of scientists [has concluded] that an estrogen-like compound in plastic could be posing some risk to the brain development of babies and children. Bisphenol A, or BPA, [a component of polycarbonate plastic,] is found in low levels in virtually every human body. The decision by the 12 advisors of the Center for the Evaluation of Risks to Human Reproduction ... is the first official, government action related to the chemical. The scientists ranked their concerns about BPA, concluding they had "some concern" about neurological and behavioral effects in fetuses, infants and children, but "minimal" or "negligible" concern about reproductive effects. The findings put the panel roughly in the middle -- between the chemical industry, which has long said there is no evidence of danger to humans, and the environmental activists and scientists who say it is probably harming people. Environmentalists lambasted the panel, saying it had minimized the risks and ignored important research. "Only the chemical industry agrees with the decision that BPA has little or no human health risks. That by itself should speak volumes about the corrupted process endorsed by the panel today," said Dr. Anila Jacob of the Environmental Working Group. The panel's preliminary report on BPA was drafted by a private consulting firm with financial ties to the chemical industry. The National Toxicology Program fired the company but ruled that the report was unbiased. The panel rejected several dozen animal studies that found reproductive effects. The decision to reject the studies has been controversial with toxicologists.

John Revelli vividly remembers the day the U.S. Supreme Court issued its infamous Kelo decision that allowed local governments to condemn private property under eminent domain, not only for public uses such as roads and schools, but also to accommodate private developers. "The Kelo decision," the former owner of Revelli Tires in Oakland [said,] "came out on June 23 of '05, and the deadline that the city put up against us to move out was July 1." The U.S. Constitution states, "Nor shall private property be taken for public use, without just compensation." The big bench wrongly ruled that "public use" could be whatever states want it to be -- including private developments designed to expand the tax base. The ruling allowed the City of New London, Conn., to seize the land under Susette Kelo's "little pink cottage" and hand it over to a private developer for a development featuring high-end waterfront homes. And Oakland went ahead with its plans to seize Revelli Tires [as well as] Autohouse -- a business owned and run by first-generation American Tony Fung -- in order to accommodate a private apartment project. Revelli and Fung lost their businesses and their property. As former Justice Sandra Day O'Connor, who dissented on Kelo, warned, "The specter of condemnation hangs over all property. Nothing is to prevent the state from replacing any Motel 6 with a Ritz-Carlton, any home with a shopping mall, or any farm with a factory." No government should be able to take your land to give it to a corporation. When states and cities, in search of a richer tax base, can take your land and give it to a private developer -- they have license to trample on everyone's rights. And no one, except the very rich, is safe.

They might be called China’s renegade businessmen, small entrepreneurs who are experts at counterfeiting and willing to go to extraordinary lengths to make a profit. But just how far out of the Chinese mainstream are they? Cutting corners or producing fake goods is not just a legacy of China’s initial rush toward the free market three decades ago but [is] still woven into the fabric of the nation’s thriving industrial economy. It is driven by entrepreneurs who are taking advantage of a weak legal system, lax regulations and a business culture where bribery and corruption are rampant. “This is cut-throat market capitalism,” said Wenran Jiang, a specialist in China who teaches at the University of Alberta. Since this country’s economic reforms began to take root in the 1980s, businesses have engineered countless ways to produce everything from fake car parts, cosmetics and brand name bags to counterfeit electrical cables and phony Viagra. Counterfeiting rings are broken nearly every week; nonetheless, the government seems to be waging a losing battle against the operations. Dozens of Chinese cities have risen to prominence over the last two decades by first specializing in fake goods, like Wenzhou, which was once known for selling counterfeit Procter & Gamble products, and Kaihua in Zhejiang province, which specialized in fake Philips light bulbs. For a time, people even derided the entire province of Henan as the capital of substandard or fake goods, like medicines that could make you miraculously grow taller.

Note: The fact that China recently sentenced to death the former head of the State Food and Drug Administration may show that China is trying to address the problem, yet corruption is rampant in the drug industries of China, the U.S., and most other countries.

At Bob Oyster's Shell station ... putting the price way up over $4 a gallon isn't about making a profit. It's about making a statement to a multinational corporation. After Shell forced him to pay higher prices for gas in San Francisco and jacked up his rent, Oyster says, he decided to fight back. Far from making a huge profit, Oyster is going out of business. He has operated the Shell station at Sixth and Harrison for 22 years, but he's walking away from it at the end of the month. "I'm getting nothing for the station,'' he says. At a time when the oil companies are posting record profits, the little guys are struggling to stay in business. And many, like Oyster, are giving up the fight. "The dealer can no longer be competitive,'' says Dennis DeCota, executive director of the California Service Station and Automotive Repair Association. "The companies are squeezing these guys out. It's just wrong.'' Oyster says his rent has gone up exponentially. Fifteen years ago it was $1,000 a month. Then it went to $6,000, then $8,000. This year Shell came back with a demand of $13,000. DeCota and Oyster see [a] sinister motive: If the dealers like them leave, a company like Shell can run its stations with its own employees and set its own pump prices. "That way they really are controlling it from the well head to the gas pump,'' says DeCota. While the price per gallon gets all the attention, Oyster says the little secret of independent dealers is that, like movie theater operators, they make their profit on the extras -- snacks, drinks and other items.

Note: When the big oil boys supposedly believe in the "trickle down" theory, why are they not sharing any of their huge profits with their dealers? And why is there so little reporting on the arbitrary raising of gas prices?

The United States and the European Union have signed up to a new transatlantic economic partnership at a summit in Washington. The pact is designed to boost trade and investment by harmonising regulatory standards, laying the basis for a US-EU single market. The two sides agreed to set up an "economic council" to push ahead with regulatory convergence in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry. The aim is to increase trade and lower costs. Some reports suggest that incompatible regulations in the world's two richest regions add 10% to the cost of developing and producing new cars.

Note: Why is this important news getting such minimal press coverage?

The March 16 recall of 91 pet food products manufactured by Menu Foods wasn't big news at first. Early coverage reported only 10-15 cats and dogs dying. I'm a contributing editor for a nationally syndicated pet feature ... and all of us there have close ties to the veterinary profession. What we were hearing from veterinarians wasn't matching what we were hearing on the news. Although ... Menu Foods started getting complaints as early as December 2006, FDA records state the company received their first report of a food-related pet death on February 20. One week later, on February 27, Menu started testing the suspect foods. Three days later, on March 3, the first cat in the trial died of acute kidney failure. Nearly one month passed from the date Menu got its first report of a death to the date it issued the recall. At that point, Menu had seen a 35 percent death rate in their test-lab cats. We started a database for people to report their dead or sick pets. As of March 31, the number of deaths alone was at 2,797. Pet owners were encouraged to report deaths and illness to the FDA. But ... there was no place on the agency's Web site to do so. The FDA kept confirming a number it had to have known was only the tip of the iceberg. It prevented veterinarians from having the information they needed to treat their patients. It allowed the media to repeat a misleadingly low number ... preventing a lot of people from really grasping the scope and implication of the problem. An import alert buried on the FDA Web site ... identified the Chinese company that is the source of the contaminated gluten -- gluten that is now known to be sold not only for use in animal feed, but in human food products, too.

Note: If you want to understand how the FDA sometimes works to support big industry at the expense of our health (and in this case the health of our pets), the entire article is a big eye-opener. Click here for more.

France's famous high-speed train, the TGV, broke its 17-year-old world speed record today when it hit a top speed of 357.2 mph. Another French train held the previous rail train record, set in 1990, of 320.2 mph. Normal TGV trains have a cruising speed of 186 mph. Japan holds the absolute speed record for a train, with its magnetically levitated Maglev train that floats over a guideway on a magnetic field without ever touching the track. The Maglev set a record of 361 mph in 2003.

Note: A CNN report states that the fastest train in the U.S. is the Acela, with a top speed of 150 mph. The same report notes "the top speed for most passenger trains outside the Northeast Corridor ... is 79 mph." Another CNN article comments "Japan's Shinkansen trains, introduced just before the 1964 Tokyo Olympics, regularly hit 186 mph." Why are American trains so backward compared to the rest of the world? Could it have anything to do with oil? For more, click here.

The U.S. Food and Drug Administration said on Tuesday it would make organizational changes to improve internal communication about potential risks that emerge after a new drug reaches the market. The move is part of the agency's response to an Institute of Medicine (IOM) report that sharply criticized the FDA's drug safety oversight and called for more staffing, funding and power to police the drug industry. The September 2006 report also found a "dysfunctional" FDA structure that hindered the agency's ability to protect public health. The IOM experts said they found FDA officials had trouble managing scientific disagreements among staff and downplayed some concerns by safety reviewers who monitor drugs after they win approval. On Tuesday, the agency said it was "making specific organizational and management changes to increase communications among FDA review staff and safety staff." The announcement came as lawmakers prepare to debate critical funding legislation for the agency that could become a vehicle for drug safety reforms. The FDA had requested the IOM report after it came under harsh criticism for its handling of Merck & Co. Inc.'s withdrawn arthritis drug Vioxx and other medicines. Merck pulled Vioxx from the market in 2004, five years after its approval, because of a link to heart attacks and strokes.

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.