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  • 20
    Feb
    2013
    7:06am, EST

    Almost $50 billion left Russia illegally in 2012, bank chief says

    Grigory Dukor / Reuters

    Russia's Central Bank Governor Sergei Ignatyev has generally kept a low profile during his 11-year tenure.

    By Douglas Busvine and Katya Golubkova, Reuters

    MOSCOW - Nearly $50 billion was transferred out of Russia illegally in 2012 and more than half this sum may have been controlled by a single group of people, the country's central bank said on Wednesday. 

    Sergei Ignatyev, chairman of the Bank of Russia, was citing the findings of a study that the bank said it would publish later on Wednesday. 

    "You get the impression that they (half the transfers) are all controlled by one well-organized group of people," Sergei Ignatyev, chairman of the Bank of Russia, told the Vedomosti daily in an interview.

    Ignatyev, who is due to retire in June, declined to identify the group in response to a reporter's question at the Federation Council, the upper house of parliament, where he was due to deliver an address.

    But the central bank analysis appears to be an indictment of President Vladimir Putin's brand of state capitalism, which critics say has allowed official corruption to flourish on a huge scale.

    'Bribes and kickbacks'
    It also marks an unusually strong intervention by Ignatyev, who during his 11-year tenure has kept a generally low profile, seeking to preserve the central bank's policy autonomy without pushing for full, Western-style independence from politics.

    Putin is due to nominate a successor to him in March, but no front runner has yet emerged.

    The central bank study found that $49 billion, or around 2.5 percent of gross domestic product, was spirited illegally out of Russia last year.

    "It can be payment for narcotics ... 'grey' imports ... bribes and kickbacks to officials (and) managers making large-scale purchases," Ignatyev told Vedomosti. "It can be schemes to avoid tax."

    Of the total, the central bank estimates that $14 billion is related to trade operations, with the remainder made up of $35.1 billion in "dubious" capital transfers.

    The latter represents 60 percent of last year's officially reported total net capital outflows of $56.8 billion, according to the study. 

    Related:

    Full Russia coverage from NBC News

    Copyright 2013 Thomson Reuters. Click for restrictions.

    19 comments

    Pffft. Compared to Wall St., The Chicago Board of Traitors and the Banksters this is chump change.

    Show more
    Explore related topics: business, russia, economy, europe, fraud, currency, finance, world-bank, graft, featured
  • 14
    Dec
    2012
    10:49am, EST

    Serbia's richest man jailed for 30 days ahead of corruption trial

    By The Associated Press

    BELGRADE, Serbia -- A judge on Friday ordered the richest man in Serbia to be held in prison for 30 days pending trial on suspicion of corruption, as the government hailed his arrest as proof that no one is above the law in the graft-plagued country.

    The arrest of influential billionaire retail tycoon Miroslav Miskovic is part of an anti-corruption sweep that the new nationalist government says is necessary if the country wants to move closer to European Union membership. But critics argue the crackdown is mostly aimed at political opponents and allies of the country's previous pro-Western leadership.

    Miskovic, 67, was arrested on Wednesday along with his son Marko and eight others in connection with the privatization of several Serbian road construction companies in 2005, during which the suspects allegedly gained illegal profits of about $39 million.


    Follow @NBCNewsWorld

    The judge at Serbia's special court for organized crime ruled that Miskovic, his son and five others must remain in prison during the pre-trial investigation. The rest were freed, with their travel documents seized.

    "We are now starting with the investigations," said public prosecutor for organized crime Miljko Radisavljevic. "We will try to collect as much evidence as possible."

    Serbian mountain is the latest to brace for 'Doomsday' crowd

    Briefly served in Milosevic government
    Miskovic is the owner of Delta Holding, the largest private company in Serbia, which deals with retail, real estate, insurance and agriculture business throughout the Balkans. Though he is not openly a government opponent he has financed several pro-Western parties that are now in opposition.

    He started his business empire under late strongman Slobodan Milosevic in the 1990s, when he also briefly served as deputy prime minister.

    Complete World coverage on NBCNews.com

    But after Milosevic fell from power in 2000, Miskovic supported the new, pro-Western authorities and expanded his wealth, estimated in 2007 at some $2 billion and believed to have grown since then.

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    © 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    5 comments

    When a country like Serbia has a gross national product of about $80 million and some guy is worth over $2 billion, you have to know he's either corrupt or running drugs and weapons, or all the above.

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    Explore related topics: serbia, slobodan-milosevic, graft, featured, belgrade, miroslav-miskovic
  • 4
    Oct
    2012
    6:13am, EDT

    Ex-Philippines President Gloria Macapagal Arroyo arrested in lottery case

    Romeo Ranoco / Reuters, file

    Ex-Philippines President Gloria Macapagal Arroyo is escorted by an aide after visiting her parents' graves on July 27. She ended about seven months of detention at an army hospital in July after posting bail on election fraud charges.

    By Reuters

    Follow @NBCNewsWorld

    Updated at 8:50 a.m. ET: MANILA -- Former Philippine President Gloria Macapagal Arroyo was detained on Thursday on charges of plunder, a crime that carries a maximum penalty of life in jail, in one of a series of corruption cases brought against her.

    Less than three months after she was released on bail following about eight months in detention on charges of election fraud, the latest charge against the ailing Arroyo involves the more serious offence of misusing state lottery funds.

    "When we arrived at the hospital, she was lying on the bed with an IV attached to her," Senior Superintendent Joel Coronel, chief of the Criminal Investigation and Detection Group, told reporters. Arroyo, who suffers from a spine condition, was being treated for dehydration.

    Philippines city restores Imelda Marcos' shoe collection after flood damage

    Coronel said Arroyo, 65, was "very cooperative" when police took her fingerprints and photos.

    The Ombudsman's office alleges that Arroyo and her co-accused unlawfully acquired and accumulated public funds amounting to 366 million pesos ($8.8 million) by diverting lottery funds for personal gain.

    Another former Philippine president, Joseph Estrada, was pursued by the Arroyo administration under the same Plunder Law. He was found guilty and sentenced to life in prison, but was pardoned a short time later.

    Philippines takes on Catholic church to push birth control, sex education

    Aaron Favila / AP

    Sandiganbayan Executive Assistant Florecal Sebastian shows a copy of the Order of Arrest on Thursday.

    Coronel said Arroyo would remain under confinement at the army hospital where she was held earlier this year.

    Arroyo, president from 2001 to 2010, is unlikely to escape detention this time around as the charge under the Plunder Law is a non-bailable offence.

    Arroyo also faces allegations of graft over an aborted $329 million national broadband deal with China's ZTE Corp. in 2007. She denies all charges and posted bail on both cases.

    President Benigno Aquino's pursuit of charges against Arroyo and the Philippines' success in kicking out her allies -- the Ombudsman and the Supreme Court chief justice -- all within a span of about a year have been cheered by investors as clear signs that the government is serious in its anti-graft agenda.

    Arroyo was stopped last year by government agents at Manila's main international airport as she was on her way to board a plane for overseas medical treatment. 

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    Copyright 2013 Thomson Reuters. Click for restrictions.

    12 comments

    LOL someone will pardon her like what someone did to estrada, corruption will continue ...

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    Explore related topics: philippines, arrest, court, lottery, gloria-macapagal-arroyo, graft, featured
  • 15
    Dec
    2011
    6:17am, EST

    French court convicts ex-president Jacques Chirac

    Charles Platiau / Reuters, file

    Former French President Jacques Chirac is seen at an awards ceremony in Paris on Nov. 24. He was convicted of embezzling public funds, abuse of trust, and illegal conflict of interest.

    By msnbc.com news services

    UPDATED 3:10 p.m. ET

    In a statement hours after the decision, Chirac said though he "categorically contest(ed)" the verdict, he would not appeal.

    Despite the "pain and the profound sadness this verdict has inflicted," the statement said, "I sadly no longer have the necessary strength to lead before new judges the combat for the truth."

    He said that as mayor, "it is up to me and me alone to take responsibility," but stressed that "above all, I affirm with honor: I cannot be blamed for anything."

    "I leave (judgment) to my compatriots, who know who I am: an honest man who never had any other desire or motivation than the unity of the French people, the greatness of France, and action in favor of peace."

    Earlier story:

    PARIS --  A French court found former President Jacques Chirac guilty Thursday of embezzling public funds to illegally finance the conservative party he long led.

    In the absence of the 79-year-old, who ruled from 1995 until 2007, the judge declared Chirac guilty and handed down a suspended two-year jail sentence.


    Chirac, a savvy world diplomat and icon of France's political establishment for decades, is the first former French head of state to face prosecution since since Nazi collaborator Marshall Philippe Petain in 1945. But the former leader did not take part in the trial, after doctors determined that he suffers severe memory lapses.

    Chirac was tried on charges of diverting public money into phantom jobs for political cronies while he was mayor of Paris between 1977 and 1995, a time when he built a new centre-right Gaullist party that launched his successful presidential bid.

    He was convicted of embezzling public funds, abuse of trust, and illegal conflict of interest.

    Chirac repeatedly denied wrongdoing.

    The two-year suspended prison sentence goes on Chirac's criminal record but means he does not have to go behind bars. The court said it took into account his age, health and status as a former head of state when determining the sentence.

    'Deep affection'
    Unusually, the prosecutor had requested earlier that the case be dropped, saying not enough evidence proved intentional corruption. The court disagreed, saying "his guilt results from long-standing and reiterated practices" of illegal party financing.

    "For all those who could have expected a rejection of the case against him, or at least no penalty, the ruling can appear disappointing," said Chirac lawyer Georges Kiejman. "What I hope is that this ruling doesn't change in any way the deep affection the French feel legitimately for Jacques Chirac."

    Chirac skirts trial yet again in corruption case

    "We have to take a step back and read this ruling, we have to speak of course with the main person involved (Chirac), and we will know tonight if he accepts this decision or, on the contrary, he wants — on principle — to appeal. For the moment, it's impossible to say more," Kiejman said.

    Contacted by The Associated Press, Chirac spokeswoman Benedicte Brissart declined to comment immediately, saying time was needed to go over the legal decision.

    Chirac enjoyed immunity from prosecution during his 1995-2007 presidential tenure, during which he led France into the shared euro currency and strongly opposed the U.S.-led invasion of Iraq.

    Reuters and The Associated Press contributed to this report.

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    29 comments

    Justice was not served. The French waited too long, but at least they have courage to make the truth of their leader's corruption official public record. Why can't America show some integrity and desire for justice and hold our leaders responsible by putting to trial George W. Bush and Dick Cheney  …

    Show more
    Explore related topics: france, paris, trial, president, chirac, corruption, graft

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