Bribery

Bribery is a well known phenomenon, it is crime but also a business tool. That is the point. Bungs, back handers, douceurs, sweeteners, brown envelopes are subject to profit & loss calculations. Is it worth paying someone a thousand to get a ten thousand contract? Perhaps not but for an overpriced contract worth  million it is almost certainly the way to go. Of course one uses cash rather than a cheque.

As The Economist explains, with charming simplicity in You Get Who You Pay For:-
Bribery would be less of a problem if it wasn't also a solid investment. A new paper....... examines 166 high-profile cases of bribery since 1971, covering payments made in 52 countries by firms listed on 20 different stock markets. Bribery offered an average return of 10-11 times the value of the bung paid out to win a contract, measured by the jump in stock market value when the contract was won. America's Department of Justice found similarly high returns in cases it has prosecuted.

Returns [ aka Return on Investment ] depend on which officials are having their palms greased. Higher-ranking officials get bigger bribes not only in cash terms but also as a proportion of the value of the contracts they dish out, with heads of state securing up to 4.7% of the contract value compared with just 1.2% for low-ranking officials. Senior officials also capture more of the benefit from graft, typically taking over 50% of the returns from contracts they hand out; their subordinates capture just 20% of the value.

 

Bribery comes in three forms. The spot market is what the name implies. The whole transaction is done there and then, on the spot.

The futures market means that corruption takes place but the payment comes later. This makes it more difficult to prove criminal intent. Blair came in for millions, lots of them after he set up the war on Iraq with Bush.

Brown got a lot less. Blackmail is another business tool & less expensive. The spot payment is preferred in Nigeria, a more honest country than England.

The third form is prepayment. A company gives money to a political party. They buy access. They get access. They get listened to. If the party ignores the sweet nothings, the donations dry up. That is why the Labour Party, once the party of the people is the enemy of the Working Class.

Recall that Blair aborted the Al Yamamah investigation because the Saudis would have refused to give us any business thereafter. Money matters more than a few bungs when all is said.

It can all go horribly wrong as various people found with the Abscam Job, when the FBI used a bent Jew, Mel Weinberg as a front man. Seven Congressmen came unstuck. One technique for getting away with it is to negotiate with the investigators, pay a monstrous fine and, possibly sack a few people. It is a stay out of jail card. The share holders take the hit; the perpetrators walk away laughing. See #FINES on the point.

 

Bribery ex Wiki
Bribery'
' is the act of giving money, goods or other forms of recompense to a recipient in exchange for an alteration of their behavior (to the benefit/interest of the giver) that the recipient would otherwise not alter. Bribery is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.[1]

Gifts of money or other items of value which are otherwise available to everyone on an equivalent basis, and not for dishonest purposes, is not bribery. Offering a discount or a refund to all purchasers is a legal rebate and is not bribery. For example, it is legal for an employee of a Public Utilities Commission involved in electric rate regulation to accept a rebate on electric service that reduces their cost for electricity, when the rebate is available to other residential electric customers. If the rebate was done to influence them to look favorably on the electric utility's rate increase applications, however, that would be bribery, and unlawful.

The bribe is the gift bestowed to influence the recipient's conduct. It may be money, goods, rights in action, property, preferment, privilege, emolument, objects of value, advantage, or merely a promise to induce or influence the action, vote, or influence of a person in an official or public capacity.[2]

In economics, the bribe has been described as rent. Bribery in bureaucracy has been viewed as a reason for the higher cost of production of goods and services.

 

Abscam Job  used a bent Jew Mel Weinberg
Abscam
—sometimes written ABSCAM—was a Federal Bureau of Investigation (FBI) sting operation that took place in the late 1970s and early 1980s.[1] The two-year investigation was directed from the FBI's office in Hauppauge, New York, and was under the supervision of Assistant Director Neil J. Welch, who headed the bureau's New York division, and Thomas P. Puccio, head of the Justice Department's Organized Crime Strike Force for the Eastern District of New York. The operation initially targeted trafficking in stolen property and corruption of prestigious businessmen, but was later converted to a public corruption investigation. The FBI, aided by the Justice Department and a convicted con-man, videotaped politicians accepting bribes from a fraudulent Arabian company in return for various political favors.[2]

More than 30 political figures were investigated and among those a total of seven Congressmen — six members of the United States House of Representatives and one United States Senator — were convicted.[3] Not only were there members of Congress, but also one member of the New Jersey State Senate, members of the Philadelphia City Council, the Mayor of Camden, New Jersey, and an inspector for the United States Immigration and Naturalization Service.

"Abscam" was the FBI codename for the operation. When law enforcement authorities announced the operation, they said that "Abscam" was a contraction of "Arab scam".[4] After complaints from the American-Arab Relations Committee, officials said it was a contraction of "Abdul scam" after the name of its fictitious front company.[5]

FINES
Of course corruption is still widespread. See Corruption Special to know where. Of course politicians still have their fingers in the till all the way up to the armpits. Blair is a case in point. He shut down the investigation of the Al Yamamah Job. Kenneth Clarke, the fat lump who is responsible for the law in Her Majesty's Government is very keen on doing nothing about bribery. The Americans are not amused.

Private Eye, the honest part of the main stream media as distinct from the rest tells about the firms that have paid millions by way of fines to the Americans. They do this without admitting liability or taking their chances in court where they would be looking at prison sentences for directors. Here are some of the results from PE 1285/29

 

 

 

 

Year Firm Fine
2006 Statoil $21 million
2008 Siemens $800 million
2010 Daimler $185 million
2010 ABB $39.3 million
2010 Royal Dutch Shell $48 million
2010 BAE $400 million
2010 Alcatel-Lucent $137 million
2011 IBM $10 million


Rolls Royce Buys Off Bribery Prosecutors With A £671 Million Bung [ 17 January 2017 ]
That's enough to buy a lot of champagne, caviar, dancing girls, to fund pleasant retirements etc. The whole thing is a nonsense. But take the point that the share holders take the hit while the perpetrators walk away laughing.