Corporate Corruption News Stories

Excerpts of Key Corporate Corruption News Stories 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: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

The American Diabetes Association...privately enlisted an Eli Lilly & Co. executive to chart its growth strategy. The National Alliance on Mental Illness...lobbies for treatment programs that also benefit its drug-company donors. The National Gaucher Foundation...gets nearly all its revenue from one drugmaker, Genzyme Corp. Many patient groups and drug companies maintain close, multimillion-dollar relationships while disclosing limited or no details about the ties. An Inquirer examination of six groups, each a leading advocate for patients in a disease area, found that the groups rarely disclose such ties when commenting or lobbying about donors' drugs. Combined, the six received at least $29 million from drug companies last year. The amount ranged from 2 percent to 7 percent of revenue at the Arthritis Foundation, to 89 percent to 91 percent at the much smaller National Gaucher Foundation. The funding usually comes from the companies' marketing or sales divisions, not charity offices. Grants often rise with promotional spending as a drug hits the market and fall when sales ebb. Donations from Merck and Pfizer Inc. to the Arthritis Foundation more than doubled, to at least $1.65 million combined, in 2000 as they launched Vioxx and Celebrex. Merck explicitly wove the foundation into sales strategies. In 2000-2001, the American Diabetes Association did not disclose an unusual gift from Lilly: a lent executive, Emerson "Randy" Hall Jr., who moved into its Alexandria, Va., headquarters and coached it on growth strategies, all paid by Lilly.

Note: If you want to understand how the huge pharmaceutical industry influences what you know about their drugs, this article is a must read. You may first want to read a riveting two-page summary of an exposé by the former editor-in-chief of the New England Journal of Medicine, who details major collusion and corruption in the pharmaceutical industry at http://www.WantToKnow.info/healthcoverup

Imagine the dilemma of having so much cash in your bank account that you didn't know what to do with it. This pipe dream for the average American is now reality for the country's biggest corporations. The industrial companies that make up the Standard & Poor's 500 index...have a staggering $643 billion in cash and equivalents. "We're in a time that is out of whack with all historical numbers," said Howard Silverblatt, equity market analyst at Standard & Poor's. "People are demanding why corporations need so much cash, what are they going to do with it?" Companies began propping up their reserves through 16 straight quarters of double-digit profit growth. Leading the pack with the most cash is Exxon Mobil Corp., which has about $36.55 billion on its balance sheet. That amount is nearly equal to its 2005 profit of $36.13 billion, the highest ever for a U.S. company. Some results of the cash riches: An unprecedented $500 billion of stock buybacks. Last year, ExxonMobil spent $18.2 billion buying its shares. One of the biggest avenues in which companies have spent this excess money has been through mergers and acquisitions. Some 75.4 percent of all deals under $1 billion so far this year were done purely with cash.

Note: A Google search reveals that though this Associated Press article was widely picked up by medium-sized newspapers in the U.S., none of the top 10 papers picked it up. The Seattle newspaper above also removed the word "huge" from the title after it was published. $36 billion means that more than $100 for every man, woman, and child in the U.S. went into ExxonMobil profits last year, and another $100 for each person went into their cash reserves. If ExxonMobil and other oil companies have so much extra cash, why are gas prices so high? It's also quite interesting that the advertisements of these mega-corporations continually invite us to go into debt buying their products, while their profits and cash reserves grow ever higher.

Drug companies fund a growing number of the studies in leading psychiatric journals, and drugs fare much better in these company-funded studies than in trials done independently or by competitors, researchers reported Wednesday. About 57% of published studies were paid for by drug companies in 2002, compared with 25% in 1992, says psychiatrist Igor Galynker of Beth Israel Medical Center in New York City. His team looked at clinical research in four influential journals: American Journal of Psychiatry, Archives of General Psychiatry, Journal of Clinical Psychiatry and Journal of Clinical Psychopharmacology. In the report, released at the American Psychiatric Association meeting in Toronto, reviewers did not know who paid for the studies they evaluated, Galynker says. There were favorable outcomes for a medication in about: eight out of 10 studies paid for by the company that makes the drug; five out of 10 studies done with no industry support; three out of 10 studies done by competitors of the firm making the drug. As drug companies increasingly fund research that yields favorable outcomes for their drugs, there may be a built-in bias because journals are reluctant to publish studies with negative or inconclusive findings.

Note: To learn more about the astonishing profits and power of the major drug companies, read our concise summary of a major insider's research at http://www.WantToKnow.info/healthcoverup

Is there a case for conspiracy theories about 9/11 and the Iraq war? About 10 minutes into the ultra-low-budget documentary 'Loose Change,' now making its way around the Internet, that late, great genius of addled truth-telling, Hunter S. Thompson, is heard giving his gonzo opinion of the way the American press behaved after 9/11. "Well, let's see, 'shamefully' is the word that comes to mind," he says. The kernel of truth in all the conspiracy theories is that the Bush administration's biggest supporters and closest political allies have benefited mightily from its policy of open-ended war. Halliburton, Vice President Dick Cheney's old company -- which is all about both oil and defense -- has seen its stock rise from about $12 a share to about $80 a share under this administration. ExxonMobil, which has contributed mightily to the Republican Party, has seen its stock soar from about $32 to $64 since Bush took office. Share prices in both companies, and in their industries, were plunging before the Bush administration came to office in early 2001. 'Loose Change' doesn't present a plausible case for conspiracy, only a collection of innuendoes. But the invasion of Iraq, well, that's a rather different matter. As a whole raft of books by former members of the administration, Bush admirers and outside analysts have established over the last couple of years, the president and vice president were hell-bent on toppling Saddam Hussein even before September 2001.

Note: Though the author belittles 'Loose Change,' he also makes some great points and alerts people to the fact that this free documentary has gained wide popularity.

Vaccine industry officials helped shape legislation behind the scenes that Senate Majority Leader Bill Frist secretly amended into a bill to shield them from lawsuits, according to e-mails obtained by a public advocacy group. E-mails and documents written by a trade group for the vaccine-makers show the organization met privately with Frist's staff and the White House about measures that would give the industry protection from lawsuits filed by people hurt by the vaccines. Frist, along with House Speaker Dennis Hastert, R-Ill., ordered the vaccine liability language inserted in a defense spending bill in December without debate and in violation of usual Senate practice. In a written statement, Frist spokeswoman Amy Call stated that the senator had promised publicly to include the vaccine liability protection in the defense spending bill. She did not address the issue of the influence of industry lobbyists.

Note: For one-paragraph summaries of media articles showing why the vaccine makers want this protection, click here.

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.

The country’s three largest oil and gas companies are expected to report combined first-quarter profits this week in excess of $16 billion, a 19 percent surge from last year. Elected officials are scrambling for ways to assuage angry consumers and businesses. President Bush on Tuesday gave the Environmental Protection Agency the authority to temporarily waive regional clean-fuel regulations to promote greater gasoline-supply flexibility, but members of Congress have other ideas. Some are renewing calls for a windfall profits tax and some want federal regulators to investigate industry consolidation. Still others are threatening hearings and expressing outrage at how the industry invests cautiously in new refining capacity yet rewards its executives lavishly. The combined earnings expected from ConocoPhillips, Exxon Mobil Corp. and Chevron Corp. will be 14 times greater than the combined first-quarter profits of Google Inc., Apple Computer Inc. and Oracle Corp. Analysts say full-year profits for the oil majors are likely to surpass the record-setting earnings of 2005, when Exxon reported a $36.13 billion profit -- the highest ever for a U.S. company.

Every psychiatric expert involved in writing the standard diagnostic criteria for disorders such as depression and schizophrenia has had financial ties to drug companies that sell medications for those illnesses, a new analysis has found. Of the 170 experts in all who contributed to the manual that defines disorders from personality problems to drug addiction, more than half had such ties, including 100 percent of the experts who served on work groups on mood disorders and psychotic disorders. "I don't think the public is aware of how egregious the financial ties are in the field of psychiatry," said Lisa Cosgrove, a clinical psychologist at the University of Massachusetts in Boston. The analysis comes at a time of growing debate over the rising use of medication as the primary or sole treatment for many psychiatric disorders, a trend driven in part by definitions of mental disorders in the psychiatric manual. Cosgrove said she began her research after discovering that five of six panel members studying whether certain premenstrual problems are a psychiatric disorder had ties to Eli Lilly & Co., which was seeking to market its drug Prozac to treat those symptoms. The process of defining such disorders is far from scientific, Cosgrove added: "You would be dismayed at how political the process can be."

We have heard various individual cases of overcharging and fraud by American firms in the reconstruction of Iraq. A year ago, an audit by the inspector general found no evidence of work done or goods delivered on 154 of 198 contracts. Sixty cases of potential swindles are under investigation. Halliburton and its hundreds of millions of dollars of overcharges or baseless costs are well known. But millions more were taken by companies that promised to build or restore libraries or police facilities, or deliver trucks and construction equipment. US government investigators can account for only a third of the $1.5 billion given by the CPA to the interim government and it appears that a substantial portion of the $8 billion given to Iraqi ministries went to "ghost employees." Because of the way the United States set things up after the invasion, contractors are immune from prosecution by Iraqis. This is robbery, not reconstruction. It has been three years and all Iraq has become is a "free-fraud zone," according to one of the attorneys for whistleblowers in Iraqi swindles. Recently, the Army found that Halliburton had $263 million of exaggerated or unexplainable costs on a $2.4 billion no-bid contract, yet still paid Halliburton $253 million of the $263 million.

According to reports published today...healthy people are being turned into patients by drug firms which publicise mental and sexual problems and promote little-known conditions only then to reveal the medicines they say will treat them.The studies, published in a respected medical journal, accuse the pharmaceutical industry of "disease mongering" - a practice in which the market for a drug is inflated by convincing people they are sick and in need of medical treatment. The "corporate-sponsored creation of disease" wastes resources and may even harm people because of the medication they turn to, the researchers add. In 11 papers in the journal Public Library of Science Medicine, experts from Britain, the US and elsewhere argue that new diseases are being defined by specialists who are often funded by the drug industry.According to the researchers, the campaigns boost drug sales by medicalising aspects of normal life.

Note: For more on how the pharmaceutical companies can negatively impact your health and your wallet:
http://www.WantToKnow.info/healthcoverup

Frustrated government auditors pleaded, cajoled and finally threatened Halliburton Co. executives who repeatedly failed to comply with government reporting requirements under a key Iraq contract with a $1.2-billion potential price tag. The 15-page report cites findings by auditors that Halliburton overcharged -- "apparently intentionally" -- on the contract by using hidden calculations, and attempted in one instance to bill the government for $26 million in costs it did not incur. The report blamed the Department of Defense for awarding the contract despite warnings from auditors that Halliburton's cost estimating system had "significant deficiencies." Although federal officials have criticized the company and threatened to cancel its contracts, Halliburton remains the largest private contractor in Iraq. The contract, awarded in January 2004, was one of three Iraq pacts for the company once headed by Vice President Dick Cheney. Although the other two agreements...have faced heavy criticism as no-bid contracts...Tuesday's report was the first to focus on the third Halliburton contract. "You are hereby notified that the government considers that you have universally failed to provide adequate cost information as required under the subject contract," a U.S. contracting officer wrote in an Aug. 28, 2004, letter to an executive of KBR, the Halliburton unit formerly known as Kellogg Brown & Root.

A public already groaning under huge deficits does not need more red ink. An oil industry already rolling in record profits does not need more tax breaks. But both are sure to happen unless some way can be found to claw back from a decade's worth of Congressional and administrative blunders, aggressive lobbying and industry greed. According to a detailed account in Monday's Times...oil companies stand to gain a minimum of $7 billion and as much as $28 billion over the next five years under an obscure provision in last year's giant energy bill that allows companies to avoid paying royalties on oil and gas produced in the Gulf of Mexico. The provision received almost no Congressional debate, in part because Congress was lazy and in part because the provision was misleadingly advertised as cost-free. A court decision in 2003 effectively doubled the amount of oil and gas exempted from royalties. Then the Bush administration offered special exemptions for "deep gas" producers, drilling more than 15,000 feet below the sea bottom. Then came the 2005 energy bill, which essentially locked in the old incentives for five more years.

Among those who worry that hackers might sabotage election tallies, Ion Sancho is something of a hero. The maverick elections supervisor in Leon County, Fla., last year helped show that electronic voting machines from one of the major manufacturers are vulnerable...and would allow election workers to alter vote counts without detection. Now, however, Sancho may be paying an unexpected price for his whistle-blowing: None of the state-approved companies here will sell him the voting machines the county needs. "I believe I'm being singled out for punishment by the vendors," he said. The trouble began last year when Sancho allowed a Finnish computer scientist to test Leon County's Diebold voting machines, a common type that uses an optical scanner to count votes from ballots that voters have marked. Some tests...showed that elections workers could alter the vote tallies by manipulating the removable memory cards in the voting machines, and do so without detection. Last month, California elections officials arranged for experts to perform a similar analysis of the Diebold machines and also found them vulnerable -- noting a wider variety of flaws than Sancho's experts had. A spokesman said Diebold will not sell to Sancho without assurances that he will not permit more such tests, which the company considers a reckless use of the machines.

From 1994 to 2003, medical research funded by pharmaceutical and biotechnology companies steadily increased and now surpasses research funded by government or public sources, according to a review of the most frequently cited studies. In the new study, reported in the March 17th online issue of the British Medical Journal, the sponsorship of 289 articles...was determined. Overall, 60% of articles had government or public funding and 36% were funded by industry. However, this masks the dramatic rise in industry funding that occurred over time: in 1994, roughly 30% of articles were funded by industry compared with over 50% in 2001. Moreover, 65 of the 77 most cited randomized controlled trials involved industry funding. "Medical research should reflect public needs more closely and the efforts of all of those involved should be better coordinated," the authors emphasize.

I went to hear Jeff Faux talk recently about his new book "The Global Class War," an account of how the corporate elite has been selling out American workers. I don't entirely buy his argument. Faux is founder of the Economic Policy Institute, a Washington think tank...which I think is best described as "gloomy." There is no economic news that the EPI can't find a way to spin negatively. That said, the work the group does is always meticulous and usually thought-provoking. The same can be said of Faux's book. His main point is that there now exists a global "party of Davos" (the Swiss ski resort where politicians, businesspeople, journalists, and scholars gather every January for the annual meeting of the World Economic Forum), whose members have more in common with each other than with the peoples of their home countries. I can testify that there is truth to this. I am a member of the junior auxiliary of the party of Davos. Faux's point is not that people like me are sinister and evil -- there's no Trilateral Commission/Council on Foreign Relations/Bilderberg Group conspiracy nonsense in his book -- just that the interests of corporate America aren't necessarily the same as America's interests. My chief solace is that Faux doesn't seem to have an obviously better alternative. Or maybe that shouldn't be a solace -- because Faux is right that a global economic system designed entirely by corporations, without any democratic input to speak of, isn't what anybody really wants.

Note: This is a heartening article from one who rubs elbows with the power elite. If you don't know about the secret gatherings of the global elite, the BBC and other articles available here are essential reading.

British businesses have profited by at least Ł1.1bn since coalition forces toppled Saddam Hussein three years ago. The company roll-call of post-war profiteers includes some of the best known names in Britain's boardrooms. The evidence of massive investments and the promise of more multimillion-pound profits to come was discovered in a joint investigation by Corporate Watch, an independent watchdog, and The Independent. The findings show how much is [at] stake if Britain were to withdraw military protection from Iraq. British company involvement at the top of Iraq's new political and economic structures means Iraq will be forced to rely on British business for many years to come. A total of 61 British companies are identified as benefiting from at least Ł1.1bn of contracts and investment in the new Iraq. But that figure is just the tip of the iceberg. It could be as much as five times higher, because many companies prefer to keep their relationship secret. The waters are further muddied by the Government's refusal to release the names of companies it has helped to win contracts in Iraq. The report acknowledges that British business still lags behind the huge profits paid to American companies. In five years, the Ł1.1bn of contracts identified in the report will be dwarfed by what Britain and the US hope to reap from investments. Highly lucrative oil contracts have yet to be handed out.

Note: For more powerful information on war-profiteering revealed by a highly decorated U.S. general see http://www.WantToKnow.info/warisaracket

The US Defence Secretary has made more than $5m (Ł2.9m) in capital gains from selling shares in the biotechnology firm that discovered and developed Tamiflu, the drug being bought in massive amounts by Governments to treat a possible human pandemic of the disease. More than 60 countries have so far ordered large stocks of the antiviral medication - the only oral medicine believed to be effective against the deadly H5N1 strain of the disease - to try to protect their people. The United Nations estimates that a pandemic could kill 150 million people worldwide. The drug was developed by a Californian biotech company, Gilead Sciences. Mr Rumsfeld was on the board of Gilead from 1988 to 2001, and was its chairman from 1997. He then left to join the Bush administration, but retained a huge shareholding. The 2005 report showed that, in all, he owned shares worth up to $95.9m, from which he got an income of up to $13m. The firm made a loss in 2003, the year before concern about bird flu started. Then revenues from Tamiflu almost quadrupled, to $44.6m, helping put the company well into the black. Sales almost quadrupled again, to $161.6m last year.

Note: If the above link fails, click here. With both the avian flu and swine flu, top drug companies raked in billions of dollars from sales of medications and vaccines, most of which went unused and have now expired. For many more strange coincidences and facts around the avian and swine flu scares, take a look at our summary of eye-opening news articles available here.

A worldwide economic boom has yielded a record number of dollar billionaires in the past year, according to Forbes. Their number rose by 15%. Microsoft's Bill Gates tops the list for the 12th year running, with a net worth of $50bn (Ł29bn). The combined net worth of the 793 is $2.6 trillion and US billionaires account for just under half the amount. The figures were conservative estimates for different reasons. While New York has the highest number of resident billionaires with 40, Moscow is second with 25, and London comes third with 23. Steve Forbes, Forbes' chief executive and editor-in-chief, attributed the global rise in the number of billionaires to an economic boom.

Note: Yet a recent New York Times article shows that the income of 90% of citizens is basically stagnant or even decreasing. See http://www.WantToKnow.info/060306newsarticles#1

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.

Ministers are trying to scrap an international agreement banning the world's most controversial genetic modification of crops, grimly nicknamed "terminator technology", a move which threatens to increase hunger in the Third World. The Government is to push for terminator crops to be considered for approval on a "case-by-case basis" at two meetings this month; its position closely mirrors the stance of the United States and other GM [genetically modified organisms]-promoting countries. Terminator technology...would stop hundreds of millions of poor farmers from saving seeds from their crops for resowing for the following harvest, forcing them to buy new ones from biotech companies every year. The technique is officially known as genetic use restriction technology (Gurt), making crops produce sterile seeds. It could be applied to any crop, including maize and rice, widely grown in developing countries. The UK working group on terminator technology...says: "It could destroy traditional farming methods, damage farmers' livelihoods and threaten food security, particularly in developing countries." [Former UK Minister of Environment Michael] Meacher said: "For the first time in the history of the world, farmers would be stopped from using their own seeds."

Note: For more on this alarming development: http://www.WantToKnow.info/deception10pg

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