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.

Swiss drugmaker Novartis said sales would grow faster than expected this year, even without a shot in the arm of up to $700 million from its H1N1 swine flu pandemic vaccine. Third-quarter net profit at Novartis ... nudged up 1 percent to $2.1 billion. This year is turning out to be better than initially feared for Novartis and other major pharmaceutical companies, thanks to hefty price increases and windfall sales arising from the H1N1 outbreak. Both Pfizer, the world's biggest drugmaker, and Eli Lilly topped earnings forecasts this week. Roche reported a sharp jump in sales of its Tamiflu drug for flu last week and analysts expect GlaxoSmithKline's Relenza will also see strong sales in the third quarter. On the vaccine front, Glaxo, Sanofi-Aventis and AstraZeneca are all expected to highlight an expected jump in fourth-quarter sales due to swine flu. The H1N1 flu vaccine is expected to contribute about $400-700 million of sales in the fourth quarter.

Note: Donald Rumsfeld personally made millions as a direct result of the avian flu scare a few year ago. For more on this, click here. For more on pharmaceutical corporation profiteering from swine flu vaccines, click here.

Ahmed Wali Karzai, the brother of the Afghan president and a suspected player in the country’s booming illegal opium trade, gets regular payments from the Central Intelligence Agency, and has for much of the past eight years, according to current and former American officials. The C.I.A.’s practices ... suggest that the United States is not doing everything in its power to stamp out the lucrative Afghan drug trade, a major source of revenue for the Taliban. The relationship between Mr. Karzai and the C.I.A. is wide ranging. He helps the C.I.A. operate a paramilitary group, the Kandahar Strike Force, that is used for raids against suspected insurgents. On at least one occasion, the strike force has been accused of mounting an unauthorized operation against an official of the Afghan government. Mr. Karzai is also paid for allowing the C.I.A. and American Special Operations troops to rent a large compound outside the city. “He’s our landlord,” a senior American official said, speaking on the condition of anonymity. A former C.I.A. officer with experience in Afghanistan said the agency relied heavily on Ahmed Wali Karzai, and often based covert operatives at compounds he owned.

Note: To read an analysis of these revelations, which argues that there is a much bigger story of "heavy dependence by U.S. and NATO counterinsurgency forces on Afghan warlords for security", click here.

The Federal Reserve Bank of New York said ... that it had no choice but to instruct American International Group last November to reimburse the full amount of what it owed to big banks on derivatives contracts, a move that ended months of effort by the insurance giant to negotiate lower payments. The New York Fed, led at the time by then-President Timothy F. Geithner, directed AIG to make the payments after it received a massive government bailout. The officials said AIG lost its leverage in demanding a better deal once the company had been saved from bankruptcy. Lawmakers and financial analysts critical of the payouts say it amounted to a back-door bailout for big banks. AIG, the recipient of a $180 billion federal rescue package, ended up paying $14 billion to Goldman Sachs over months and $8.5 billion to Deutsche Bank, among others. Before the New York Fed intervened, AIG had been trying to persuade the firms to take discounts. [A Bloomberg] report concluded that the government needlessly overpaid $13 billion. The Federal Reserve has declined to detail the terms of the deals and specifics about negotiations with creditors. The Bloomberg report quoted an unnamed AIG executive who said he was pressured by New York Fed officials to refrain from filing any documents with the Securities and Exchange Commission that would divulge the deals' details.

Note: For many revealing reports from reliable sources on the realities of the Wall Street bailout, click here.

Hoping, perhaps, to persuade a dubious public that curbing reckless business practices is indeed a Washington priority, the Obama administration and Congress produced a hat trick of financial reforms last week. For all the apparent action in Washington, some acute observers say that it was much ado about little. Last week’s moves, they say, were tinkering around the edges and did nothing to prevent another disaster like the one that unfolded a year ago. The white-hot focus on pay, for example, looks like a way for the government to reassure an angry public that they are making genuine changes. But compensation is a trifling matter compared to, say, true reform of derivatives trading. “The American public understands the immorality of paying people huge bonuses for failures that damaged the economy,” said Michael Greenberger, a law professor at the University of Maryland and a former commodities regulator. “What they don’t understand is that those payments are only a small fraction of the irregularities that took place and that, in essence, the compensation problems, as bad as they are, are a sideshow to the casino-like nature of the economy as it existed, pre-Lehman Brothers, and as it exists today.” Regulating derivatives is far more important to those interested in eliminating the possibility of future billion-dollar bailouts. But the derivatives bill generated by the House Agriculture Committee contains a sizable loophole. Many derivatives would not trade in the light of day.

Note: For many revealing reports from reliable sources on the realities of the continuing bank bailout, click here.

The man who used a digital camera to record the death of Robert Dziekanski at the Vancouver airport says he feels guilty he didn't try to help the Polish immigrant. Dziekanski, 40, died Oct. 14, 2007, following several shocks from a Taser four RCMP officers used to subdue him after he caused a disturbance. The incident might never have received much attention if Paul Pritchard had not decided to grab his digital camera and start recording the actions of the distraught Dziekanski before police arrived. The release of the 10-minute video, which contradicted the police version of the incident, led to widespread public outrage around the world and diplomatic tensions between Canada and Poland. The 10-minute Pritchard video [showed that] four RCMP officers rushed in and confronted Dziekanski, who backed up toward a counter. Dziekanski then faced the officers with what later turned out to be a stapler in one hand. Immediately, there was a loud crack from a Taser, followed by Dziekanski screaming and convulsing as he stumbled and fell to the floor. Another loud crack can be heard, as an officer appears to fire the Taser at Dziekanski again. Then, as the officers kneel on top of Dziekanski and handcuff him, he continues to scream and convulse on the floor. One officer is heard to say, "Hit him again. Hit him again," and there is another loud cracking sound. Evidence at the inquiry revealed the Taser was eventually fired five times at Dziekanski. After he was subdued, the RCMP left him handcuffed on the floor, where he died before medical help arrived.

Note: If these police would be so brutal in front of the public, imagine what they might have done when no one is looking. And note that the complete text of this article reveals that their brutal actions were covered up at high levels in the police department.

You would think that an unpiloted space plane built to rocket spaceward from Florida atop an Atlas booster, circle the planet for an extended time, then land on autopilot on a California runway would be big news. But for the U.S. Air Force X-37B project — seemingly, mum's the word. There is an air of vagueness regarding next year's Atlas Evolved Expendable launch of the unpiloted, reusable military space plane. This Boeing Phantom Works craft has been under development for years. Several agencies have been involved in the effort, NASA as well as the Defense Advanced Projects Research Agency (DARPA) and various arms of the U.S. Air Force. The tight-lipped factor surrounding the space plane, its mission, and who is in charge is curious. Such a hush-hush factor seems to mimic in pattern that mystery communications spacecraft lofted last month aboard an Atlas 5 rocket, simply called PAN. Its assignment and what agency owns it remains undisclosed. "The problem with it [X37-B] is whether you see it as a weapons platform," said Theresa Hitchens, former head of the Center for Defense Information's Space Security Program, now Director of the United Nations Institute for Disarmament Research (UNIDIR) in Geneva, Switzerland. "It then becomes, if I am not mistaken, a Global Strike platform. There are a lot of reasons to be concerned about Global Strike as a concept," Hitchens [said].

Shares of VeriChip Corp tripled after the company said it had been granted an exclusive license to two patents, which will help it to develop implantable virus detection systems in humans. The patents, held by VeriChip partner Receptors LLC, relate to biosensors that can detect the H1N1 and other viruses. The technology will combine with VeriChip's implantable radio frequency identification devices to develop virus triage detection systems. The triage system will provide multiple levels of identification -- the first will identify the agent as virus or non-virus, the second level will classify the virus and alert the user to the presence of pandemic threat viruses and the third level will identify the precise pathogen, VeriChip said in a white paper published May 7, 2009. Shares of VeriChip were up 186 percent.

Note: Beware of efforts to scare you into getting microchipped for your own safety. Click here for more on this. For more on pharmaceutical corporation profiteering from swine flu vaccines, click here.

The Dutch justice ministry has announced it will close eight prisons and cut 1,200 jobs in the prison system. A decline in crime has left many cells empty. During the 1990s the Netherlands faced a shortage of prison cells, but a decline in crime has since led to overcapacity in the prison system. The country now has capacity for 14,000 prisoners but only 12,000 detainees. Deputy justice minister Nebahat Albayrak announced on Tuesday that eight prisons will be closed. The overcapacity is a result of the declining crime rate, which the ministry's research department expects to continue for some time.

Note: Isn't it interesting that this country, which is one of the very few to have legalized marijuana and prostitution, has a shortage of criminals?

Just how accurate are GPS-guided precision bombs, and what is most likely to send them off-target? Now you can find out by simply reading the smart bomb’s tactical manual on the internet. No, the Pentagon didn’t slip up and post the instructions online. Rather, a whistle-blower leaked the manual via Wikileaks, a website that uses anonymising technology to disguise the source of leaked information. Launched online in early 2007, Wikileaks is run by an informal group of open government and anti-secrecy advocates who want to allow people living under oppressive regimes, or with something to say in the public interest, to anonymously leak documents that have been censored or are of ethical, political or diplomatic significance. Thanks to Wikileaks, potential whistle-blowers are now far more willing to come forward, says John Young, who runs the long-standing site Cryptome.org, which specialises in posting documents on espionage, intelligence and cryptography issues. “We started getting a lot less information after 9/11 as people became more cautious when law enforcement agencies got more draconian powers. So we are very happy to see Wikileaks doing what they are doing so aggressively.” This flood of leaked documents has been made possible by internet technology that allows whistle-blowers to post documents online without revealing their identity or IP address.

Note: To read the full article for free, click here.

Is the Central Intelligence Agency covering up some dark secret about the assassination of John F. Kennedy? For six years, the agency has fought in federal court to keep secret hundreds of documents from 1963, when an anti-Castro Cuban group it paid clashed publicly with the soon-to-be [alleged] assassin, Lee Harvey Oswald. The files in question, some released under direction of the court and hundreds more that are still secret, involve the curious career of George E. Joannides, the case officer who oversaw the dissident Cubans in 1963. In 1978, the agency made Mr. Joannides the liaison to the House Select Committee on Assassinations — but never told the committee of his earlier role. That concealment has fueled suspicion that Mr. Joannides’s real assignment was to limit what the House committee could learn about C.I.A. activities. The agency’s deception was first reported in 2001 by Jefferson Morley, who has doggedly pursued the files ever since. Mr. Morley, 51, [is] a former Washington Post reporter and the author of a 2008 biography of a former C.I.A. station chief in Mexico. After losing an appeals court decision in Mr. Morley’s lawsuit, the C.I.A. released material last year confirming Mr. Joannides’s deep involvement with the anti-Castro Cubans who confronted Oswald. But the agency is withholding 295 specific documents from the 1960s and ’70s, while refusing to confirm or deny the existence of many others. The deceptions began in 1964 with the Warren Commission. The C.I.A. hid its schemes to kill Fidel Castro and its ties to the anti-Castro Directorio Revolucionario Estudantil, or Cuban Student Directorate, which received $50,000 a month in C.I.A. support during 1963. In the years since Oswald was named as the assassin, speculation about who might have been behind him has never ended.

Note: For WantToKnow.info team member Peter Dale Scott's analysis of the extraordinary significance of this New York Times article, click here. For two revealing clips suggesting the official explanation of the JFK assassination was manipulated, click here (for a five-minute clip from the History Channel) and here (for a highly revealing documentary from a CBS affiliate).

Did you know that Lunesta will help you fall asleep just 15 minutes faster? Or that a higher dose of the osteoporosis drug Zometa could damage a cancer patient’s kidneys and raise their risk of death? Chances are you didn’t, and neither did your doctor. Much of what the Food and Drug Administration knows about a drug’s safety and effectiveness is not included on the label, say two drug safety experts who are calling on the agency to make that information more accessible. In ... the New England Journal of Medicine, researchers ... argue that drug labels don’t reflect the nuanced decisions the FDA makes when deciding to approve a drug. The editorial from Drs. Lisa Schwartz and Steven Woloshin recommends easy-to-read fact boxes to help patients weigh the benefits and risks of medications. If drug labels sometimes exaggerate benefits and play down drug risks, the authors say there’s a very good reason: they are written by drugmakers. While FDA must approve the final labeling, the actual language is drafted by the manufacturer, with input from FDA scientists. The labeling is based on results from company studies, which generally compare results for patients taking the drug versus those taking placebo. If FDA decides the drug’s ability to treat or prevent a disease outweighs its side effects, the agency is obligated to approve it. But Schwartz and Woloshin point out that benefits may be slim and potential harms may not be fully understood. “The take home point is that just because a drug is approved doesn’t mean it works very well,” said Schwartz, in an interview with the Associated Press. “You really need to know more to see whether it’s worth the cost.” Schwartz and Woloshin say FDA labeling frequently fails to provide a full picture of a drug’s effects.

Note: For a powerful summary of corruption in the pharmaceutical industry, click here.

Even as the economy continues to struggle, much of Wall Street is minting money — and looking forward again to hefty bonuses. Many Americans wonder how this can possibly be. How can some banks be prospering so soon after a financial collapse, even as legions of people worry about losing their jobs and their homes? It may come as a surprise that one of the most powerful forces driving the resurgence on Wall Street is not the banks but Washington. Many of the steps that policy makers took last year to stabilize the financial system — reducing interest rates to near zero, bolstering big banks with taxpayer money, guaranteeing billions of dollars of financial institutions’ debts — helped set the stage for this new era of Wall Street wealth. Titans like Goldman Sachs and JPMorgan Chase are making fortunes in hot areas like trading stocks and bonds, rather than in the ho-hum business of lending people money. They also are profiting by taking risks that weaker rivals are unable or unwilling to shoulder — a benefit of less competition after the failure of some investment firms last year. So even as big banks fight efforts in Congress to subject their industry to greater regulation — and to impose some restrictions on executive pay — Wall Street has Washington to thank in part for its latest bonanza. “All of this is facilitated by the Federal Reserve and the government,” said Gary Richardson, a research fellow at the National Bureau of Economic Research. “But we have just shown them that they can have the most frightening things happen to them, and we will throw trillions of dollars to protect them. I have big concerns about that.”

Note: For lots more on the realities of the Wall Street bailout, click here.

Congress began the work of reforming our troubled financial system last week, and a bill aimed at regulating derivatives passed the House Financial Services Committee on Thursday. Derivatives — contracts that theoretically protect buyers from unforeseen financial calamities but more often are used to fuel raw speculation — were ... at the heart of the banking crisis. Credit default swaps ... propelled the American International Group off the cliff. Those swaps also linked millions of trading partners, creating a web in which one default threatened to produce a chain of corporate and economic failures worldwide. And derivatives aren’t going away. So reforming the $42 trillion market for credit swaps is crucial if taxpayers are to be protected from future rescues of institutions deemed not only too big but also too interconnected to fail. The best aspect of the House bill is that it requires many swaps to be traded on exchanges just like stocks, subjecting them for the first time to the light of day. But elsewhere in the bill, ... exceptions to this exchange-trading rule undermine its regulatory power. Big banks dealing in swaps don’t want exchange trading, where pricing and the identities of participants would be more publicly transparent. Michael Greenberger, a University of Maryland law professor and an expert in derivatives, criticized the House bill. “The plain language of the legislation can only be read as a Christmas tree of decorative gifts to the banking industry,” he said. “And this is being done when people acknowledge the unregulated O.T.C. derivatives market was a principal reason for the meltdown.”

Note: For lots more on the realities of the Wall Street bailout, click here.

The Food and Drug Administration [has admitted] that four New Jersey congressmen and its own former commissioner unduly influenced the process that led to its decision last year to approve a patch for injured knees. The agency’s scientific reviewers repeatedly and unanimously over many years decided that the device, known as Menaflex and manufactured by ReGen Biologics Inc., was unsafe because the device often failed, forcing patients to get another operation. But after receiving what an F.D.A. report described as “extreme,” “unusual” and persistent pressure from four Democrats from New Jersey ... agency managers overruled the scientists and approved the device for sale in December. All four legislators made their inquiries within a few months of receiving significant campaign contributions from ReGen, which is based in New Jersey, but all said they had acted appropriately and were not influenced by the money. Dr. Andrew C. von Eschenbach, the former drug agency’s commissioner, said he had acted properly. The agency has never before publicly questioned the process behind one of its approvals, never admitted that a regulatory decision was influenced by politics, and never accused a former commissioner of questionable conduct. The report, written by top agency officials, said that Dr. von Eschenbach, who resigned as F.D.A. commissioner in January, became as a result of political pressure “personally engaged in the details of a process usually coordinated” by scientific staff. One agency manager concluded that Dr. von Eschenbach “was demanding not only an expedited process but also an outcome in favor of ReGen,” the report stated.

Note: For a powerful summary of corruption in the pharmaceutical industry, click here.

The Obama administration [has said] that the federal budget deficit for the fiscal year that just ended was $1.4 trillion, nearly a trillion dollars greater than the year before and the largest shortfall relative to the size of the economy since 1945. The shortfall for the fiscal year 2009, which ended Sept. 30, translates to 10 percent of the economy, according to a joint statement from the Treasury secretary, Timothy F. Geithner, and the director of the Office of Management and Budget, Peter R. Orszag. For the 2008 fiscal year, the deficit of $459 billion was 3.2 percent of the economy, as measured by the gross domestic product. At 10 percent of the gross domestic product, the 2009 deficit is the highest since the end of World War II, when it was 21.5 percent. The overall national debt, which is the accumulation of annual deficits, is nearly $12 trillion, and projected deficits for the next decade will add an estimated $9 trillion more. Administration officials say two-thirds of that is due to Bush administration policies.

Note: The current debt of $12 trillion equals $40,000 for every man, woman, and child in the U.S. Most of the increased deficit is due to the government bailout of the biggest Wall Street banks and investment houses. For lots more on the realities of the Wall Street bailout, click here.

A scientist who allegedly tried to sell classified secrets to Israel had worked on the U.S. government's Star Wars missile shield program, and the Justice Department declared Tuesday that he had tried to share some of the nation's most guarded secrets. Arrested in an FBI sting operation, Stewart David Nozette was jailed without bond and accused in a criminal complaint of two counts of attempting to communicate, deliver and transmit classified information. In an interview, Scott Hubbard, a former colleague, said that Nozette was primarily a defense technologist who had worked on the Reagan-era Star Wars effort formally named the Strategic Defense Initiative. ''This was leading edge, Department of Defense national security work,'' said Hubbard, a professor of aerospace at Stanford University who worked for 20 years at NASA. Nozette held a special security clearance equivalent to the Defense Department's top secret and ''critical nuclear weapon design information'' clearances. Authorities became worried about possible espionage activity by Nozette after an investigation by NASA's inspector general in 2006 began looking at whether Nozette submitted false claims for expenses that were not actually incurred. In probing Nozette's finances in that case, investigators found indications he might be working for a foreign government, and they launched a national security investigation that eventually led to the undercover FBI sting.

Note: There's definitely something strange going on here.

As demonstrations have evolved with the help of text messages and online social networks, so too has the response of law enforcement. On Thursday, F.B.I. agents descended on a house in Jackson Heights, Queens [NY], and spent 16 hours searching it. The most likely reason for the raid: a man who lived there had helped coordinate communications among protesters at the Group of 20 summit in Pittsburgh. The man, Elliot Madison, 41, a social worker who has described himself as an anarchist, had been arrested in Pittsburgh on Sept. 24 and charged with hindering apprehension or prosecution, criminal use of a communication facility and possession of instruments of crime. The Pennsylvania State Police said he was found in a hotel room with computers and police scanners while using the social-networking site Twitter to spread information about police movements. He has denied wrongdoing. American protesters first made widespread use of mass text messages in New York, during the 2004 Republican National Convention. Messages, sent as events unfolded, allowed demonstrators and others to react quickly to word of arrests, police mobilizations and roving rallies. Mass texting has since become a valued tool among protesters, particularly at large-scale demonstrations. Mr. Madison [may be] the first to be charged criminally while sending information electronically to protesters about the police. “He and a friend were part of a communications network among people protesting the G-20,” Mr. Madison’s lawyer, Martin Stolar, said on Saturday. “There’s absolutely nothing that he’s done that should subject him to any criminal liability.”

Note: For many reports from reliable sources on increasing government erosion of civil liberties, click here.

UK border police used anti-terrorist legislation to prevent a British climate change activist from crossing over into mainland Europe where he planned to take part in events surrounding the forthcoming United Nations summit in Denmark. Chris Kitchen, a 31-year-old office worker, said he feared his treatment by police could mark the start of a clampdown on protesters, hundreds of whom are planning to travel to Copenhagen for the climate change talks in December. [He had hoped] to take part in discussions organised by a network of protest groups coming together under the banner Climate Justice Action. He said he was prevented from crossing the border ... when the coach he was travelling on stopped at the Folkestone terminal of the Channel tunnel. Kitchen said police officers boarded the coach and, after checking all passengers' passports, took him and another climate activist to be interviewed under schedule 7 of the Terrorism Act 2000, a clause which enables border officials to stop and search individuals to determine if they are connected to terrorism. The passports were not initially scanned, Kitchen said, suggesting the officials knew his name and had planned to remove him from the coach before they boarded. During his interview, he was asked questions about his family, work and past political activity. The police also asked him what he intended to do in Copenhagen. When Kitchen said that anti-terrorist legislation does not apply to environmental activists, he said the officer replied that terrorism "could mean a lot of things". Police are understood to be monitoring protesters on a number of databases, some of which highlight individuals when they pass through secure areas, such as ports.

Note: For many reports from reliable sources on increasing government erosion of civil liberties, click here.

Billionaire Mayor Michael Bloomberg defended multibillion-dollar pharmaceutical companies and their chief executives on Friday, declaring that they "don't make a lot of money" and shouldn't be scapegoats in the health care debate. The mayor — and wealthiest person in New York City with a fortune estimated at $16.5 billion — made the comments on his radio show Friday. "You know, last time I checked, pharmaceutical companies don't make a lot of money, their executives don't make a lot of money," Bloomberg said. Pharmaceutical CEOs are known to make millions, with generous salaries, stock options and other perks. Abbott Laboratories Inc. Chairman and Chief Executive Miles White's compensation was $25.3 million in 2008. The North Chicago, Ill.-based company saw profit rising 35 percent to $4.88 billion. Merck & Co.'s chief executive, Richard T. Clark, received a $17.3 million compensation package for 2008. The company's profit more than doubled to $7.8 billion. The mayor ... often battles criticism that he is out of touch with regular people. Earlier this year he declared "we love the rich people" while arguing against raising taxes on the wealthy. It was clear that Bloomberg or one of his aides realized his gaffe while he was still on the air Friday. The mayor, who has sought to cast himself as a financial and business expert, came back from a break and said he had looked up the pay of some pharmaceutical executives. "Some of them are making a decent amount, more than a decent amount of money," he said.

As a group of healthcare workers, we are being mandated by a new New York state law to receive the seasonal flu vaccine and H1N1 vaccines. If we do not receive these vaccines by November 30th, that inaction is to be considered our resignation. We must sign a consent for the vaccines prior to their administration. The manufacturers have been granted immunity by the government; they cannot be sued for untoward effects. We do not want to receive these vaccines. Our educated studies of risks versus benefits conclude that the risks of the vaccine are greater than the possible benefits. All health care workers with direct patient care are mandated to receive the vaccine, so the coercion is real -- we cannot just go find a job "somewhere else." And the job market of 2009 does not offer opportunity in a different arena where we could still feed our families. We understand the fear that swine flu and influenza has generated. While our sources of information indicate that swine flu is not a pandemic, we know that the slanted research fed by the media offers results intended to frighten the public. We do not have the power to stop the fear that mass hype is able to generate. We hear the hype you are fed. We do not want to bring you harm, but we should not be forced into harm's way ourselves.

Note: For more on mandatory flu vaccinations, click here.

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.