Government Corruption News Articles

Excerpts of key news articles on

Below are key excerpts of revealing news articles on government 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 revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.

A genetically engineered fish infused with genes from other species, including an eel-like creature, could soon be on dinner plates in the Bay Area and around the United States. The U.S. Food and Drug Administration is considering an application by AquaBounty Technologies Inc. of Massachusetts to bioengineer a sterile salmon that would grow extremely fast and, if all goes as planned, never set so much as a fin in a natural body of water. It would be the first genetically engineered animal to be approved for human consumption. The proposal, which is awaiting an environmental assessment and a preliminary decision by the FDA, has created a furor among environmentalists, who have dubbed the species "Frankenfish." They claim the doctored salmon could spread disease in humans or circulate mutant genes in the wild if an accident or sabotage ever set them loose. "The effect of what happens if these genetically engineered fish escape is largely unknown and has been largely unquestioned by the FDA," said Colin O'Neil, the regulatory policy analyst for the Center for Food Safety, an environmental nonprofit based in Washington, D.C. "These fish have been demonstrated to be less healthy. Consumers clearly do not want to eat genetically engineered salmon."

Note: For a superb summary of the dangers posed by genetically-modified foods, click here.

America's big businesses are less and less American. They're going abroad for sales and employees. That's one reason they've showed record-breaking profits in 2010 while creating almost no American jobs. Consider one of the most popular products for Christmas gifts of all time - Apple's iPhone. Researchers from the Asian Development Bank Institute have dissected an iPhone, whose wholesale price is around $179, to determine where the money actually goes. Only about $11 of that iPhone goes to American workers, mostly researchers and designers. Even old-tech American companies made big money abroad in 2010 - and created scads of jobs there. General Motors, for example, is now turning a nice profit, and American investors are bullish about its future. That doesn't mean GM will be creating lots more blue-collar jobs in America, though. 2010 was a banner year for GM's foreign sales - already two-thirds of its total sales, and rising. In October, GM became the first automaker to sell more than 2 million cars a year in China. The company is now making more cars in China than in the United States. Meanwhile, back home in the United States, GM has slashed its labor costs. New hires are brought in at roughly half the wages and benefits of former GM employees, under a two-tier wage structure accepted by the United Auto Workers. Almost all of GM's U.S. suppliers have also cut their payrolls.

Note: Robert Reich, former U.S. secretary of labor, is professor of public policy at UC Berkeley and the author of the new book Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.

About eight of every 10 registered lobbyists who work for scanner-technology companies previously held positions in the government or Congress, most commonly in the homeland security, aviation or intelligence fields, a Washington Post review of lobbying-disclosure forms and other data shows. Industries routinely employ well-connected lobbyists to seek favorable legislation and regulations in the nation's capital. But the extent of the connections to the federal government is particularly notable given the relatively small size of the scanner industry, which is dominated by half a dozen specialized businesses with heavy investments in airport and border security technology. The roster of lobbyists for L-3 Communications includes former U.S. senator Alfonse M. D'Amato (R-N.Y.) and Linda Daschle, a former federal aviation official who is married to Thomas A. Daschle (D-S.D.), a former Senate majority leader. L-3 has won nearly $900 million worth of TSA business, including for its "millimeter-wave" machines used for airport body scans. Former homeland security chief Michael Chertoff, a longtime advocate for increased use of passenger scanners, worked until recently as a consultant for Rapiscan, which provides "backscatter" X-ray scanners to the TSA. Privacy and civil liberties advocates and other critics argue that the industry's lobbying ties have encouraged a frenzy of TSA spending on technologies that are often untested or ineffective.

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

Excerpts from complaint by New York State Attorney General (and Governor-Elect) Andrew Cuomo: E&Y [Ernst and Young] substantially assisted Lehman Brothers Holdings Inc., now bankrupt, to engage in a massive accounting fraud, involving the surreptitious removal of tens of billions of dollars of securities from Lehman’s balance sheet in order to create a false impression of Lehman’s liquidity, thereby defrauding the investing public. As the financial crisis deepened in 2007 and 2008 and Lehman’s liquidity problems intensified, E&Y ... assisted Lehman in defrauding the public about the Company’s deteriorating financial condition, particularly its leverage. As the public auditor for Lehman, E&Y had the absolute obligation to ensure that Lehman’s financial statements ... did not mislead the public. Instead of fulfilling this obligation ... E&Y sat by silently while Lehman deceived the public by concealing [fraulent] transactions and misrepresenting the Company’s leverage. By doing so, E&Y directly facilitated a major accounting fraud, and helped Lehman mislead the public as to its true financial condition. E&Y, which reaped over $150 million in fees from Lehman, must be held accountable for its role in this fraud.

Note: For key reports from reliable sources detailing the fraud that led to the financial crisis and bailout of Wall Street by taxpayers, click here.

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned. Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery. "Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney [said]. "There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults." American cities and states have debts in total of as much as $2tn. US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds, said the CBS programme, apocalyptically titled The Day of Reckoning.

Note: For a treasure trove of reports from major media sources on the dire impacts of the financial crisis and government bailout of financial capitalists at taxpayers' expense, click here.

Nigeria announced today that in exchange for $250 million, the African nation has dropped bribery charges against Dick Cheney, eight others and Halliburton, the oil-services company he headed before becoming vice president. African and U.S. media say Halliburton and Cheney have not commented on the deal, which the head of Nigeria's anti-corruption agency said was offered by Texas-based Halliburton. As The Wall Street Journal points out, "U.S. regulators collected $1.28 billion in penalties and criminal fines in the Bonny Island case after settling charges of violating the Foreign Corrupt Practices Act, a 1977 law that bans the bribery of foreign officials to obtain business." Femi Babafemi, a spokesman for the Economic and Financial Crimes Commission, said that the $250 million would include roughly $130 million frozen in a Swiss bank, and that remainder would be paid as fines, Agence France-Presse reported Tuesday. But a source told AFP $100 million was in Switzerland and $30 million was in Monaco, saying the money was paid to an intermediary but never passed on as part of the bribery scheme.

Note: It sounds like Cheney and Halliburton basically bribed their way out of a potentially very damaging court case. For lots more from major media sources on corporate and government corruption, click here and here.

The incoming Republican chairman of the House Financial Services Committee is facing fire for recently saying that Washington and banking regulators should "serve" the banks. Rep. Spencer Bachus (R-Ala.), who recently beat back a challenge from Ed Royce of Fullerton to win the chairmanship of the powerful committee, made the comments in an interview with the Birmingham News. "In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks," Bachus said. The Democratic Congressional Campaign Committee quickly dubbed him "Big Bank Bachus" and highlighted the more than $1 million in campaign contributions he has received from Wall Street over the years. Outgoing Financial Services Committee Chairman Barney Frank (D-Mass.) jumped into the fray. He slammed Bachus' intentions to scale back the recently enacted financial reform law, including trying to limit the powers of the new Consumer Financial Protection Bureau, saying the comments showed "a seriously flawed view of the relationship that should exist between financial institutions and those who set the rules governing safety and soundness. His view of the role of regulation, expressed before he ‘clarified’ his genuine belief, explains why he is so opposed to an independent consumer financial protection bureau, and why he wants to weaken restraints on speculation by banks with depositors’ money,” Frank said.

Note: For more along these lines, see these concise summaries of deeply revealing articles about widespread corruption in government and banking and finance. For additional information, see the excellent, reliable resources provided in our Banking Corruption Information Center.

An Italian appeals court on [December 15] increased the sentences against 23 Americans convicted in the kidnapping of an Egyptian terror suspect who was part of the CIA's extraordinary renditions program. In upholding the convictions, the court added one year to the eight-year term handed down to former Milan CIA station chief Robert Seldon Lady and two years to the five-year terms given to 22 other Americans convicted along with him, defense lawyers said. They were never in Italian custody and were tried and convicted in absentia but risk arrest if they travel to Europe. The Americans and two Italians were convicted last year of involvement in the kidnapping of ... Abu Omar from a Milan street on Feb. 17, 2003 — the first convictions anywhere in the world against people involved in the CIA's practice of abducting terror suspects and transferring them to third countries where torture was permitted. The cleric was transferred to U.S. military bases in Italy and Germany before being moved to Egypt, where he says he was tortured. He has since been released. Amnesty International praised [the] decision as a step toward demanding greater accountability in Europe for the CIA's extraordinary rendition program. Julia Hall, an Amnesty counter-terrorism expert, said in a statement, "The Italian courts have acknowledged that the chain of events leading to such serious abuses cannot go unanswered. Kidnapping is a crime, not a 'state secret.' "

Note: This is amazing news which shows that the CIA is losing its former status as immune in courts of law.

Hidden behind the save-the-world rhetoric of the global climate change negotiations lies the mucky realpolitik: money and threats buy political support; spying and cyberwarfare are used to seek out leverage. The [WikiLeaks] US diplomatic cables reveal how the US seeks dirt on nations opposed to its approach to tackling global warming; how financial and other aid is used by countries to gain political backing; how distrust, broken promises and creative accounting dog negotiations; and how the US mounted a secret global diplomatic offensive to overwhelm opposition to the controversial "Copenhagen accord", the unofficial document that emerged from the ruins of the Copenhagen climate change summit in 2009. Negotiating a climate treaty is a high-stakes game, not just because of the danger warming poses to civilisation but also because re-engineering the global economy to a low-carbon model will see the flow of billions of dollars redirected. Seeking negotiating chips, the US state department sent a secret cable on 31 July 2009 seeking human intelligence from UN diplomats across a range of issues, including climate change. The request originated with the CIA. As well as countries' negotiating positions for Copenhagen, diplomats were asked to provide evidence of UN environmental "treaty circumvention" and deals between nations.

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.

In 1961, a top CIA scientist reported in an internal memo that "the feasibility of remote control of activities in several species of animals has been demonstrated ... Special investigations and evaluations will be conducted toward the application of selected elements of these techniques to man," according to The Search for the "Manchurian Candidate: The CIA and Mind Control, a 1979 book by former State Department intelligence officer John Marks. “[T]his cold-blooded project,” Marks wrote, “was designed ... for the delivery of chemical and biological agents or for ‘executive action-type operations,’ according to a document. ‘Executive action’ was the CIA's euphemism for assassination.” Victims have sought justice for years, in vain. Now, almost 40 years later, a federal magistrate has ordered the CIA to produce records and witnesses about the LSD and other experiments “allegedly conducted on thousands of soldiers from 1950 through 1975.” U.S. Magistrate Judge John Larsen’s Nov. 17 order exempted the agency from having to testify about electrode tests on humans, but Gordon P. Erspamer, lead attorney for the veterans, says “we are pursuing this as well.” Papers filed in the case describe “electrical devices implanted in brain tissue with electrodes in various regions, including the hippocampus, the hypothalamus, the frontal lobe (via the septum), the cortex and various other places,” Erspamer said.

Note: For a revealing summary of CIA mind-control experimentation, 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.

The Transportation Security Administration has come under fire for new body scanners and what some say are highly invasive pat-downs. Thomas Sawyer, a bladder cancer survivor, said he was humiliated after a pat-down broke his urostomy bag, leaving the 61-year-old covered in his own urine. Sawyer said he warned the TSA officials twice that the pat-down could break the seal. Cathy Bossi, a long-time flight attendant and breast cancer survivor, said the TSA made her take off her prosthetic breast. "She put her full hand on my breast and said, 'What is this?' I said 'It's a prosthesis because I've had a breast cancer,'" Bossi said. "And she said, 'You'll need to show me that.'" In recent days, several passengers have come forward to tell such shocking stories about their experiences with TSA officers. An ABC News employee said she was subject to a "demeaning" search at Newark Liberty International Airport Sunday morning. "The woman who checked me reached her hands inside my underwear and felt her way around," she said. "It was basically worse than going to the gynecologist. It was embarrassing. It was demeaning. It was inappropriate." The head of the Transportation Security Administration John Pistole ... has said the TSA would not change its pat-down procedures.

Note: For lots more from major media sources on increasing threats to privacy, click here.

The U.S. Senate yesterday approved spending $4.6 billion to settle two lawsuits: one by black farmers who alleged racial discrimination by government lenders and the other by 300,000 American Indians who said they had been cheated out of land royalties dating to 1887. Passage of the measure, by voice vote, unblocks a legislative logjam that has thwarted payouts, negotiated by the Obama administration, of $1.15 billion to the black farmers and $3.4 billion to the American Indians. The House ... must vote on the settlements again. At least seven times this year, Senate Republicans blocked efforts to include the spending provisions in pending legislation. The farmers’ 1997 class-action lawsuit alleged discrimination by the Agriculture Department’s lending programs. Under a negotiated settlement announced in February, qualified farmers can collect as much as $50,000, plus debt relief. Others may collect monetary damages up to $250,000. One of the largest class-action cases filed against the U.S., the 1996 lawsuit by American Indian plaintiffs accused the Interior Department of mismanaging trust funds that collected royalties for grazing rights and the extraction of minerals, oil and natural gas from tribal lands.

Note: For key reports from major media sources on government corruption, click here.

The Obama administration has quietly forged ahead with its proposal to sell $60 billion worth of fighter jets and attack helicopters to Saudi Arabia unhampered by Congress, despite questions raised in legislative inquiries and in an internal congressional report about the wisdom of the deal. The massive arms deal would be the single largest sale of weapons to a foreign nation in the history of the U.S., outfitting Saudi Arabia with a fully modernized, potent new air force. Critics are questioning the deal, and the stealthy effort by the Obama administration to avoid a more probing congressional review by notifying Congress last month, just as members were headed home for the November elections. Congress had 30 days to raise objections -- a review period that concludes Saturday. The arrangement would ship 84 F-15 fighter jets and more than 175 attack helicopters to the Saudis over the next 15 years. Morris J. Amitay, a former head of the Pro-Israel lobbying group AIPAC, told ABC News a chief aim of the sale is insuring that Saudi Arabia can serve as another regional military counterweight to Iran. In part for that reason, he said, Israel has not been raising significant objections to the deal, even though he suspects Israel will push hard to insure the aircraft are not equipped with weapons systems as advanced as those held by Israel's own military.

Note: For lots more from reliable sources on war and war preparations in the Middle East, 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.

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?

Few ecological disasters have been as confounding as the massive and devastating die-off of the world's honeybees. The phenomenon of Colony Collapse Disorder (CCD) -- in which disoriented honeybees die far from their hives -- has kept scientists, beekeepers, and regulators desperately seeking the cause. The long list of possible suspects has included pests, viruses, fungi, and also pesticides, particularly so-called neonicotinoids, a class of neurotoxins that kills insects by attacking their nervous systems. For years, their leading manufacturer, Bayer Crop Science, a subsidiary of the German pharmaceutical giant Bayer AG (BAYRY), has tangled with regulators and fended off lawsuits from angry beekeepers who allege that the pesticides have disoriented and ultimately killed their bees. A cheer must have gone up at Bayer on Thursday when a front-page New York Times article, under the headline "Scientists and Soldiers Solve a Bee Mystery," described how a newly released study pinpoints a different cause for the die-off: "a fungus tag-teaming with a virus." The Bayer pesticides, however, go unmentioned. What the Times article did not explore -- nor did the study disclose -- was the relationship between the study's lead author, Montana bee researcher Dr. Jerry Bromenshenk, and Bayer Crop Science. In recent years Bromenshenk has received a significant research grant from Bayer to study bee pollination.

Note: Read the full, revealing article to learn how money often corrupts science. For lots more from reliable sources on corporate corruption, click here.

To the passing motorist, there is nothing about Wood Norton Hall to identify it as the site of the BBC's secret nuclear bunker. Who knew there even was such a thing? According to the official line, Wood Norton is a training camp, where sound engineers are sent for residential weekends. But it's what you can't see from above the ground that is intriguing. Buried 10 storeys into the hillside is a fully functioning nuclear bunker, built at great expense in 1966, at the height of the Cold War. Those involved in its construction were obliged to sign the Official Secrets Act, and even now you won't get a peep out of the BBC press office to acknowledge the reality. Measuring 175ft long, the bunker – known to high command as Pawn: Protected Area Wood Norton – remains ready for service in the event of an attack on London. It is said to have beds and ping-pong tables and is connected by tunnels dug into the hillside to a mast on top of the hill which is fitted with a super high-frequency satellite dish. According to the Government War Book, a Cold War document that was declassified only last year and which sets out what happens in the event of a nuclear strike, Wood Norton was a vital tool in keeping the country informed should chaos descend. While the Cabinet would be secreted away in another bunker in Corsham, Wiltshire, pre-recorded tapes kept at Wood Norton would be broadcast across the nation in the minutes before any bomb was dropped.

Note: For important stories from reliable sources on government secrecy, click here.

It started with a fingerprint of a 25-year-old college professor who opposed the Vietnam War and ended with a search for his remains, 32 years later, in a wooded area near Eveleth, Minn. The FBI's files on Paul and Sheila Wellstone [show that] the FBI initially took interest in Wellstone as part of the broader surveillance of the American left ... and, in the end, [sifted] through the wreckage of the fatal plane crash that killed Wellstone and seven others eight years ago. Wellstone's surviving sons declined to comment on the documents, which were obtained in response to a Freedom of Information Act request filed by MPR News. The FBI did not include 76 pages related to the National Transportation Safety Board, the agency that investigated the crash. A request for those records is pending. Coleen Rowley, the 9/11 whistleblower and former chief legal advisor in the FBI's Minneapolis office, said the documents from 1970 shed light on the FBI's far-reaching efforts to quash political dissent. "I think this really is valuable … because it's basically history repeating what we have right now," she said, noting the recent FBI raids at the homes of several anti-war organizers in Minneapolis. Wellstone's arrest occurred less than a year before the official end of Cointelpro, a series of secret domestic surveillance programs created by FBI Director J. Edgar Hoover to monitor and disrupt groups deemed to be a threat to national security.

Note: For insights into the deeper implications of Senator Wellstone's mysterious plane crash, click here.

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.