Government Corruption News Stories

Excerpts of Key Government Corruption News Stories in Major Media

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: 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.

Pennsylvania remains the largest U.S. state without a tax on natural gas production, thanks in part to a study released under the banner of the Pennsylvania State University. The 2009 report predicted drillers would shun Pennsylvania if new taxes were imposed, and lawmakers cited it the following year when they rejected a 5 percent tax proposed by then-Governor Ed Rendell. What the study didn’t do was note that it was sponsored by gas drillers and led by an economist with a history of producing industry-friendly research on economic and energy issues. As the U.S. enjoys a natural-gas boom from a process called hydraulic fracturing, or fracking, producers are taking a page from the tobacco industry playbook: funding research at established universities that arrives at conclusions that counter concerns raised by critics. Cary Nelson, president of the American Association of University Professors, who made the tobacco analogy, said companies and their trade associations are “buying the prestige” of universities that are sometimes not transparent about funding nor vigilant enough to prevent financial interests from shaping research findings. The Penn State report is not the only example. A professor at the University of Texas at Austin led a February study that found no evidence of ground-water contamination from fracking. He did not reveal that he is a member of the board of a gas producer. Company filings examined by Bloomberg indicate that in 2011, he received more than $400,000 in compensation from the company, which has fracking operations in Texas.

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

A week after uncovering a hidden-funds scandal at the state parks department, finance officials are now trying to piece together why the balance sheets for similar "special funds" are off by $2.3 billion -- money that appeared to be right under their noses amid California's financial meltdown. An analysis by this newspaper of California's little-known 500-plus special funds -- like the ones that included $54 million in parks money shielded from the Department of Finance -- shows tens of millions of dollars in discrepancies in numerous accounts. The fund that gives restitution to violent crime victims was off by $29 million. The one that provides children with low-cost health insurance was $30 million out of balance. The fund that rewards people for recycling bottles and cans was $113 million off. "Where are these dollars?" asked state Senate budget chairman Mark Leno, D-San Francisco, who said it was a "big problem" that the special funds "clearly have not been getting enough attention." The newspaper's review found at least 17 accounts that appeared to have significantly more reserve cash than what individual departments reported to the finance department, though it's unclear why. The problem could date back decades and is only now coming to light after discrepancies were discovered in the parks funds, costing longtime parks director Ruth Coleman and deputy director Michael Harris their jobs.

Note: Could these funds be related to the CAFR reports which have gone so underreported? For more, see this link.

Mexican prosecutors formally filed drug charges ... against four high-ranking army officers, including three generals and a lieutenant colonel. They are the highest-ranking Mexican army officials arrested in at least 15 years, and allegedly provided protection for the Beltran-Leyva drug cartel. The Attorney General's Office said charges of "organized crime to further drug trafficking" were lodged against retired generals Tomas Angeles Dauahare and Ricardo Escorcia, as well as active service Gen. Roberto Dawe Gonzalez. Retired Lt. Col. Silvio Hernandez Soto faces the same charge. The previous highest-ranking army official arrested was Gen. Jesus Gutierrez Rebollo, then head of Mexico's anti-drug agency, who was arrested in 1997 and later convicted of aiding deceased drug lord Amado Carrillo Fuentes. More than 47,000 people have been killed in drug violence ... according to government figures.

Note: For reliable information in the involvement of rogue elements of the US government in the illegal drug trade, click here.

A new report from [FBI] inspector general, Michael Bromwich [says] that much of the vaunted laboratory's work was amateurish, and, worse, that lab officials who appeared at trials were overly eager to help the prosecution. It discovered, among other things, substandard performances by the laboratory's explosives, chemistry-toxicology and materials analysis units, forcing F.B.I. officials to review several hundred past and current cases -- including the Oklahoma City bombing case -- to determine how many might have been jeopardized by unprofessional work. The inquiry found numerous instances in which untrained F.B.I. agents had been allowed to take part in scientific work. In some cases lab reports were inadequately documented and exaggerated the evidence against defendants. Supervisors provided only the most cursory oversight, giving their subordinates freedom to reach unsupported findings, which then went unchallenged. Specifically, the F.B.I. apparently offered cooked testimony in at least two major cases. In the 1993 World Trade Center bombing case, an examiner in the explosives lab, David Williams, gave inaccurate testimony that ''exceeded his expertise, was unscientific and speculative, was based on improper nonscientific grounds and appeared to be tailored to correspond with his estimate of the amount of explosive used in the bombing.'' That should have been cause for Mr. Williams's dismissal. Instead he was assigned to the Oklahoma City bombing, where, the inspector general found, he committed ''many of the same errors.''

Note: For deeply revealing reports from reliable major media sources on the hidden realities of intelligence agencies, click here.

Former Citigroup Chairman & CEO Sanford I. Weill, the man who invented the financial supermarket, called for the breakup of big banks in an interview on CNBC Wednesday. “What we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans, have banks do something that’s not going to risk the taxpayer dollars, that’s not too big to fail,” Weill told CNBC’s “Squawk Box.” He added: “If they want to hedge what they’re doing with their investments, let them do it in a way that’s going to be mark-to-market so they’re never going to be hit.” He essentially called for the return of the Glass–Steagall Act, which imposed banking reforms that split banks from other financial institutions such as insurance companies. He said banks should be split off entirely from investment banks, and they should operate with a leverage ratio of 12 times to 15 times of what they have on their balance sheets. Banks should also be completely transparent, Weill said, with everything on balance sheet. “There should be no such thing as off balance sheet,” he said.

Note: For deeply revealing and reliable major media reports on corruption and criminality in the operations and regulation of the financial sector, click here.

The Deputy Governor of the Bank of England encouraged Barclays to try to lower interest rates after coming under pressure from senior members of the last Labour government, documents have disclosed. A memo published by Barclays suggested that Paul Tucker gave a hint to Bob Diamond, the bank’s chief executive, in 2008 that the rate it was claiming to be paying to borrow money from other banks could be lowered. His suggestion followed questions from “senior figures within Whitehall” about why Barclays was having to pay so much interest on its borrowings, the memo states. Barclays and other banks have been accused of artificially manipulating the Libor rate, which is used to set the borrowing costs for millions of consumers, businesses and investors, by falsely stating how much they were paying to borrow money. The bank claimed yesterday that one of its most senior executives cut the Libor rate only at the height of the credit crisis after intervention from the Bank of England. The memo, written on Oct 29, 2008, by Mr Diamond and circulated to two other senior bank officials, said: “Mr Tucker reiterated that he had received calls from a number of senior figures within Whitehall to question why Barclays was always toward the top end of the Libor pricing.” Government sources suggested that Baroness Vadera, one of Gordon Brown’s closest colleagues, was responsible for the contact with the Bank of England.

Note: For deeply revealing and reliable major media reports on corruption and criminality in the operations and regulation of the financial sector, click here.

The world's super-rich have taken advantage of lax tax rules to siphon off at least $21 trillion, and possibly as much as $32tn, from their home countries and hide it abroad – a sum larger than the entire American economy. James Henry, a former chief economist at consultancy McKinsey and an expert on tax havens, has conducted groundbreaking new research for the Tax Justice Network campaign group – sifting through data from the Bank for International Settlements (BIS), the International Monetary Fund (IMF) and private sector analysts to construct an alarming picture that shows capital flooding out of countries across the world and disappearing into the cracks in the financial system. "This offshore economy is large enough to have a major impact on estimates of inequality of wealth and income; on estimates of national income and debt ratios; and – most importantly – to have very significant negative impacts on the domestic tax bases of 'source' countries," Henry says. John Christensen of the Tax Justice Network [commented] "Inequality is much, much worse than official statistics show, but politicians are still relying on trickle-down to transfer wealth to poorer people. This new data shows the exact opposite has happened: for three decades extraordinary wealth has been cascading into the offshore accounts of a tiny number of super-rich." In total, 10 million individuals around the world hold assets offshore, according to Henry's analysis; but almost half of the minimum estimate of $21tn – $9.8tn – is owned by just 92,000 people.

Note: Henry's report, entitled The Price of Offshore Revisited, is available here. For more on this, click here.

The first systematic look at the New York police department's response to Occupy Wall Street protests paints a damning picture of an out-of-control and aggressive organization that routinely acted beyond its powers. In a report that followed an eight-month study, researchers at the law schools of NYU and Fordham accuse the NYPD of deploying unnecessarily aggressive force, obstructing press freedoms and making arbitrary and baseless arrests. The study ... found evidence that police made violent late-night raids on peaceful encampments, obstructed independent legal monitors and was opaque about its policies. The NYPD report is the first of a series to look at how police authorities in five US cities, including Oakland and Boston, have treated the Occupy movement since it began in September 2011. The research concludes that there now is a systematic effort by authorities to suppress protests, even when these are lawful and pose no threat to the public. Sarah Knuckey, a professor of law at NYU, said: "All the case studies we collected show the police are violating basic rights consistently, and the level of impunity is shocking". To be launched over the coming months, the reports are being done under the Protest and Assembly Rights Project, a national consortium of law school clinics addressing America's response to Occupy Wall Street.

Note: For lots more from reliable major media sources on government threats to civil liberties and other types of government corruption, click here and here.

California's parks system stashed away nearly $54 million even as it was cutting services and threatening to close parks, a revelation that prompted the resignation of the department's director. The hoarded cash remained untapped while the California Department of Parks and Recreation painted a dire picture of the system's health, soliciting hundreds of thousands of dollars in donations in what was thought to be a desperate scramble to keep facilities open. The state attorney general's office has launched an investigation into the hidden surplus, which officials believe the department concealed from state bookkeepers, the governor and the Legislature for at least a dozen years, dating to the tenure of Gray Davis. State auditors found the extra money in two funds, one intended to finance the purchase and upkeep of properties for off-road vehicle recreation, the other for general park maintenance and restoration. The money came from user fees, rentals and fines. The state planned to close 70 parks this month to save $22 million, less than half the amount of the department's hidden surplus. Elizabeth Goldstein, president of the California State Parks Foundation, called Friday's news "truly disturbing and appalling. People inside the department have not been honest about the resources that have been available to them." The surplus "doesn't prevent the crisis that is currently underway; it may help minimize it," Goldstein said. "This money will not solve the overall parks crisis that has been building for decades."

Note: To learn how governments secretly stash large amounts of cash which very few know about, read the CAFR webpage at this link. For lots more from reliable major media sources on government corruption, click here.

The former head of Anglo Irish Bank, Sean FitzPatrick, has been arrested by Irish police in connection with alleged financial irregularities at the bank. He is the third former senior executive from Anglo Irish Bank to appear in court within the past 24 hours. All three men face 16 charges in relation to an alleged failed attempt to prop up Anglo's share price after a stock market collapse. Anglo was nationalised at a cost of about 30bn euros (Ł23.4bn) to Irish taxpayers. Anglo was badly exposed by the bursting of the Irish property bubble and suffered the largest corporate loss in the history of the Republic of Ireland. It is the third time Mr FitzPatrick has been arrested as part of the three-and-a-half year long investigation into the collapse of Anglo Irish Bank. Willie McAteer - the second in command at the bank before his resignation in January 2009 - appeared in court alongside Pat Whelan, a former head of lending and operations at the bank. The former bank is being wound down and is currently being run by the Irish Bank Resolution Corporation Limited (IBRC).

Note: For deeply revealing and reliable major media reports on corruption and criminality in the operations and regulation of the financial sector, click here.

Anthony V. Mangione, the former chief of U.S. Immigration and Customs Enforcement in South Florida, plans to plead guilty rather than go to trial next month on Internet child-pornography charges, according to a federal court filing. It is customary for federal defendants who plead guilty to receive lower sentences after they accept responsibility and forego trial. Still, each of the charges accusing Mangione of transporting and receiving images of minors engaging in sexually explicit conduct carries a minimum-mandatory sentence of five years. Mangione ... served as an agent with ICE for 27 years. During the past decade, ICE aggressively targeted child pornography, with Mangione frequently speaking out against predators who illegally share images through their computers. As the special agent in charge of ICEs South Florida office between 2007 and 2011, Mangione often praised the agencys efforts against child pornography in both the cyber and real worlds.

Note: To learn about documented sexual abuse in secret CIA mind control programs, click here. For deeply revealing and reliable major media reports on sexual abuse, click here.

In January of this year, health and nutrition blogger Steve Cooksey received a disturbing letter from the North Carolina Board of Dietetics/Nutrition. The letter contained a 19-page markup of Cooksey’s own blog, highlighting in handwritten red pen an extensive series of changes the Board demanded that Cooksey make. He had to make these changes, the Board censors told him, or he would face arrest. Specifically, the Board censors said, he had to remove or change all writing they construed as constituting “nutrition advising” or “nutrition counseling” without a license. Forbes was granted exclusive first-look at a new series of internal documents, freshly leaked by outraged members within the Academy of Nutrition and Dietetics [formerly the American Dietetic Association, or ADA], the professional association behind the NC State Board of Dietetics/Nutrition which censored Cooksey. In these newly-available internal documents, [the ADA]: Openly discusses creating and using state boards of dietetics/nutrition ... for the express purpose of limiting market competition for its Registered Dietitian members; [and] openly discusses a nation-wide plan of surveilling and reporting private citizens, and particularly all competitors on the market for nutrition counseling, for “harming the public” by providing nutrition information/advice/counseling without a license.

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

More than a decade has passed since Mitt Romney presided over the Winter Olympics in Salt Lake City, but the archival records from those games that were donated to the University of Utah to provide an unprecedented level of transparency about the historic event, remain off limits to the public. And some of the documents that may have shed the most light on Romney's stewardship of the Games were likely destroyed by Salt Lake Olympic officials. The archivists involved in preparing the documents for public review told ABC News that financial documents, contracts, appointment calendars, emails and correspondence are likely not included in the 1,100 boxes of Olympic records, and will not be part of the collection that will ultimately be made public. The Salt Lake City Winter Olympics represent a crucial chapter in the Romney biography -- his selection to oversee the Games came in the wake of a bribery scandal. Romney ... frequently cites the experience as part of what qualifies him to assume the presidency. But the absence of publicly available records that detail the decisions he made while running the games has increasingly become an uneasy subject for the library, which has for months been receiving inquiries from journalists and other researchers trying to subject Romney's version of the events to an analysis based on documents from the events. Romney [has] already faced criticism for his decisions to keep secret some of his past tax records and some details about his investment holdings.

Note: For lots more from reliable major media sources on institutional secrecy, click here.

Regulators on both sides of the Atlantic failed to act on clear warnings that the Libor interest rate was being falsely reported by banks during the financial crisis, it emerged last night. A cache of documents released yesterday by the New York Federal Reserve showed that US officials had evidence from April 2008 that Barclays was knowingly posting false reports about the rate at which it could borrow in order to assuage market concerns about its solvency. An unnamed Barclays employee told a New York Fed analyst, Fabiola Ravazzolo, on 11 April 2008: "So we know that we're not posting, um, an honest Libor." He said Barclays started under-reporting Libor because graphs showing the relatively high rates at which the bank had to borrow attracted "unwanted attention" and the "share price went down". The verbatim note of the call released by the Fed represents the starkest evidence yet that Libor-fiddling was discussed in high regulatory circles years before Barclays' recent Ł290m fine. The New York Fed said that, immediately after the call, Ms Ravazzolo informed her superiors of the information, who then passed on her concerns to Tim Geithner, who was head of the New York Fed at the time. Mr Geithner investigated and drew up a six-point proposal for ensuring the integrity of Libor which he presented to the British Bankers Association, which is responsible for producing the Libor rate daily. Mr Geithner, who is now US Treasury Secretary, also forwarded the six-point plan to the Governor of the Bank of England, Sir Mervyn King.

Note: For deeply revealing reports from reliable major media sources on regulatory and financial corruption and criminality, click here. For our highly revealing Banking Corruption Information Center, click here.

The global bank HSBC has been used by Mexican drug cartels looking to get cash back into the United States, by Saudi Arabian banks that needed access to dollars despite their terrorist ties and by Iranians who wanted to circumvent United States sanctions, a Senate report says. The 335-page report released [on July 16] also says that executives at HSBC and regulators at the Office of the Comptroller of the Currency ignored warning signs and failed to stop the illegal behavior at many points between 2001 and 2010. The problems at HSBC, Europe's largest financial institution, [are] indicators of a broader problem of illegal money flowing through international financial institutions into the United States. The report on HSBC is the latest of several scandals that have recently rocked global banks and highlighted the inability of regulators to catch what is claimed to be widespread wrongdoing in the financial industry. The British bank Barclays recently admitted that its traders tried to manipulate a crucial global interest rate, and multiple major banks are under investigation. JPMorgan Chase disclosed last week that its employees may have tried to hide trades that are likely to cost the bank billions of dollars. The Office of the Comptroller of the Currency has come under particularly harsh criticism for showing too much deference to the banks it regulates.

Note: For deeply revealing reports from reliable major media sources on regulatory and financial corruption and criminality, click here. For our highly revealing Banking Corruption Information Center, click here.

Motorists may have been paying too much for their petrol because banks and other traders are likely to have tried to manipulate oil prices in the same way they rigged interest rates, an official report has warned. Concerns are growing about the reliability of oil prices, after a report for the G20 found the market is wide open to “manipulation or distortion”. Traders from banks, oil companies or hedge funds have an “incentive” to distort the market and are likely to try to report false prices, it said. Petrol retailers use oil price “benchmarks” to decide how much to pay for future supplies. The rate is calculated by data companies based on submissions from firms which trade oil on a daily basis – such as banks, hedge funds and energy companies. However, like Libor ... the market is unregulated and relies on the honesty of the firms to submit accurate data about all their trades. This is one of the major concerns raised in the G20 report, published last month by the International Organisation of Securities Commissions (IOSCO). In the study for global finance ministers, including George Osborne, the regulator warns that traders have opportunities to influence oil prices for their own profit. It points out that the whole market is “voluntary”, meaning banks and energy companies can choose which trades to make public. IOSCO says this “creates opportunity for a trader to submit a partial picture in order to influence the [price] to the trader’s advantage”.

Note: For deeply revealing reports from reliable major media sources on regulatory and financial corruption and criminality, click here.

Efforts to write benefits for biotech seed companies into U.S. legislation, including the new Farm Bill, are sparking a backlash from groups that say the multiple measures would severely limit U.S. oversight of genetically modified crops. From online petitions to face-to-face lobbying on Capitol Hill, an array of consumer and environmental organizations and individuals are ringing alarm bells over moves they say will eradicate badly needed safety checks on crops genetically modified to withstand herbicides, pests and pesticides. The measures could speed the path to market for big biotech companies like Monsanto and Dow Chemical that make billions of dollars from genetically altered corn, soybeans, cotton and other crops. "They are trying to change the rules," said George Kimbrell, senior attorney at the Center for Food Safety, which has lawsuits pending against government regulators for failing to follow the law in approving certain biotech crops. "It is to the detriment of good governance, farmers and to the environment." As early as next week the U.S. House of Representatives could take up one of the more controversial measures - a provision included in the 2013 Agriculture Appropriations bill known as Section 733 that would allow biotech crops to be planted even if courts rule they were approved illegally. Opponents call it the "Monsanto Rider" because Monsanto's genetically altered alfalfa and sugar beets have been subject to court challenges for illegal regulatory approvals.

Note: For deeply revealing reports from reliable major media sources on the dangers of genetically modified organisms, click here. Multiple reliable sources show that you may be eating genetically modified food daily which scientific experiments have repeatedly demonstrated can cause sickness and even death in lab animals. Click here to verify.

The Department of Homeland Security will soon be using a laser at airports that can detect everything about you from over 160 feet away. This laser-based scanner ... could read everything from a person’s adrenaline levels, to traces of gun powder on a person’s clothes, to illegal substances — and it can all be done without a physical search. It also could be used on multiple people at a time, eliminating random searches at airports. The scanner is called the Picosecond Programmable Laser. The device works by blasting its target with lasers which vibrate molecules that are then read by the machine that determine what substances a person has been exposed to. The inventor of this invasive technology is Genia Photonics. Active since 2009, they hold 30 patents on laser technology designed for scanning. In 2011, they formed a partnership with In-Q-Tel, a company chartered by the CIA and Congress to build “a bridge between the Agency and a new set of technology innovators.” Although the technology could be used by “Big Brother,” Genia Photonics states that the device could be far more beneficial being used for medical purposes to check for cancer in real time, lipids detection, and patient monitoring.

Note: For deeply revealing reports from reliable major media sources on government threats to privacy, click here.

On February 2, 2011, President Obama called Yemeni President Ali Abdullah Saleh. The two discussed counterterrorism cooperation and the battle against Al Qaeda in the Arabian Peninsula. At the end of the call, according to a White House read-out, Obama “expressed concern” over the release of a man named Abdulelah Haider Shaye, whom Obama said “had been sentenced to five years in prison for his association with AQAP.” It turned out that Shaye had not yet been released at the time of the call, but Saleh did have a pardon for him prepared and was ready to sign it. But ... Abdulelah Haider Shaye is not an Islamist militant or an Al Qaeda operative. He is a journalist. Shaye risked his life to travel to areas controlled by Al Qaeda and to interview its leaders. He also conducted several interviews with the radical cleric Anwar al Awlaki. Shaye did the last known interview with Awlaki just before it was revealed that Awlaki, a US citizen, was on a CIA/JSOC hit list. “We were only exposed to Western media and Arab media funded by the West, which depicts only one image of Al Qaeda,” recalls his best friend Kamal Sharaf, a well-known dissident Yemeni political cartoonist. “But Abdulelah brought a different viewpoint.” Shaye had no reverence for Al Qaeda, but viewed the group as an important story, according to Sharaf.

Note: We generally avoid using sources with a strong bias like The Nation, but as none of the other major media have touched this most important story, we're including it here. For more on this revealing story, click here and here

For generations, most college-bound Americans paid reasonable fees to attend publicly financed state universities. But the bedrock of that system is fracturing as cash-strapped states slash funding to these schools just as attendance has soared. Places like Ohio State, Penn State and the University of Michigan now receive less than 7 percent of their budgets from state appropriations. As a result, public universities — which historically have graduated the majority of U.S. college students — are eliminating programs, raising tuition and accepting more out-of-state students, who typically pay significantly higher rates. The upshot of it all? Students face greater competition for admission, significantly higher tuition bills and bigger debt loads upon graduation. The state cutbacks also mean students are attending larger classes, frequently taught by part-time professors earning dismal salaries. In 2009, less than a quarter of all university faculty were full-time, compared with 45 percent in 1975, according to the American Association of University Professors. State and local spending for public university students dropped to a 25-year low in 2011. Tuition and fees at public, four-year colleges have jumped by more than 70 percent on average over the last decade. Those costs hit $8,240 in 2011-12, up from $4,790 in 2001-02.

Note: Is the military more important than education? Why do huge military budgets continue to be well funded while educational budgets are slashed? Is this the future we want to give our children?

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.