Corruption is Everywhere > Ex-PM Morrison's Secret Self-Appointments; Man with 9K income buy $11mn Mansion; Trump Org man sentenced

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Former Australia PM Morrison faces calls to resign over secret self-appointments

By Clyde Hughes

Scott Morrison, Australia's PM from 2018 to last May, offered an apology on Tuesday and said the self-appointments were made only to use in case of emergency due to the COVID-19 pandemic. File Photo by Lukas Coch/EPA-EFE

Aug. 16 (UPI) -- Former Australian Prime Minister Scott Morrison is facing calls for him to resign from parliament after revelations that while in power he secretly appointed himself to five ministries, often without the knowledge of those running the departments.

Prime Minister Anthony Albanese said on Tuesday that he's waiting for legal advice on what can be done now that Morrison is no longer in the leadership post, and how to prevent the same thing from happening again.

The unannounced self-appointments secretly gave Morrison final decision-making power in the ministries of health, finance, treasury, home affairs and industry.

Morrison, who was Australia's PM from 2018 to last May, offered an apology on Tuesday and said the self-appointments were made only to use in case of emergency due to the COVID-19 pandemic.

"These were extraordinary times and they required extraordinary measures to respond," Morrison said in a post to Facebook. "Our government's overriding objective was to save lives and livelihoods, which we achieved."

"To achieve this, we needed to ensure continuity of government and robust administrative arrangements to deal with the unexpected in what was a period of constant uncertainty during the nation's biggest crisis outside of wartime," he added.

Peter Dutton, head of Morrison's Liberal Party, has defended the former prime minister and accused of Albanese -- leader of the opposition Australian Labor Party -- of trying to score political points on the issue.

Karen Andrews, who was home affairs minister under Morrison, said that she was blindsided by the revelations and has called for his resignation. He represents the division of Cook in Australian Parliament.

"I had absolutely no knowledge and was not told by the [prime minister, the prime minister's office] nor the department secretary," Andrews said according to the Australian Broadcasting Corp. "This undermines the integrity of government. I think that Scott Morrison needs to resign, and he needs to leave parliament."

Tax agency obtains 'jeopardy order' for debt from

Downton Abbey-loving billionaire

Mingfei Zhao paid $11 million for iconic Vancouver mansion in same year

he declared income of $9K

Jason Proctor · 

CBC News · 

Posted: Aug 17, 2022 4:00 AM PT

Billionaire Mingfei Zhao spoke with the CBC in 2016 about his plans to restore an iconic Vancouver mansion to its former glory. The Canada Revenue Agency has applied for an order to seize money from the sale of the home. (Chris Corday/CBC)

Canada's tax agency has obtained an order to seize debts owed by a Chinese billionaire whose love of Downton Abbey inspired him to pay more than $11 million for an iconic Vancouver mansion in the same year he claimed income of just $9,424.

According to a federal court judgment issued last month, the Canada Revenue Agency sought the so-called "jeopardy order" to collect $770,710 against the future sale of Mingfei Zhao's home because the 64-year-old has left Canada and appears to be in the process of trying to sell the only asset he has left in this country.

The new 'Earl' of Shaughnessy breathes life into historic home

Zhao bought the 14,000-square foot Tudor-style property in 2014 to much fanfare, vowing to return the building to its original glory a century earlier when "the Rosemary" — named after the daughter of a liquor tycoon — was considered the grandest home ever built in Vancouver.

But according to the court documents, Zhao declared income of less than $10,000 in 2014 and $38,161 in 2015 — amounts CRA auditors concluded were "not sufficient" to support his purchase of real estate and monthly mortgage payments of $8,699.

"Lifestyle does not match reported income," a CRA auditor claimed in a lengthy affidavit obtained by the CBC.

The tax agency reassessed Zhao's income for the two years in question at a combined $1.28 million — levelling a claim against him for unpaid income tax, which has risen to more than $770,000 with interest and penalties.

'I was watching Downton Abbey at the time'

Zhao spoke with the CBC in 2016 about his plans for the Rosemary.

He described himself as a retired property developer from Beijing who made his first fortune in flax and grains before moving on to real estate. Zhao immigrated to Canada in September 2014, and his tax returns identify him as divorced.

The Rosemary, built in 1918, was named after the daughter of the liquor tycoon who built it.

New owner Mingfei Zhao bought the property for $11 million in 2014.

(Leonard Frank/Vancouver Public Library)

Zhao told CBC he was sinking millions into an upgrade of the 12-bedroom, 12-bathroom mansion, which features an arched bridge connecting the main building to a carriage house.

Speaking through a Mandarin translator, Zhao said he fell in love with the Rosemary at first sight.

"I liked it because I was watching Downton Abbey at the time," Zhao said.

The billionaire said he was determined to shatter the stereotype that people from China are serial destroyers of older properties: "I want to protect and recover this house to make it stand here another 100 years."

'He had started a new family in Europe'

Zhao has filed notices of objection to fight the tax penalty assessed by the CRA, which would normally mean that the agency would not be able to come for his money until after an appeal has been determined.

But the federal Income Tax Act allows the CRA to ask a judge to order payment when "the collection of all or any part of an amount assessed in respect of a taxpayer would be jeopardized by a delay in the collection of that amount."

The court file includes more than 2,000 pages of documents detailing attempts to nail down Zhao's bank account balances, his unreported worldwide income and his whereabouts.

At one point, he also owned another multi-million dollar home as well as a Bentley, a Rolls Royce, a Mercedes and a Range Rover. But as of last June, he was only registered as the owner of the Rosemary and the Range Rover.

Last month, records showed Zhao no longer had a Canadian cellphone account.

In March, the CRA also claimed to have "uncovered" a Globe and Mail article from nearly two years earlier "in which it stated that Mr. Zhao no longer lived in Vancouver and that he had started a new family in Europe."

'The optics don't look good'

The documents detail discussions between auditor Dale Gonwick and one of Zhao's legal representatives — who later advised that no one would appear for Zhao at the court hearing.

"I asked if there were any items he knew of that might help balance the 'not a Jeopardy' side of the equation, because from what I could see, I would have to refer this up the line as a danger of loss issue," Gonwick wrote.

The Rosemary was purchased for $11 million in 2014 and is now on sale for $19 million. It takes a fish-eye lens to properly capture the size of the property. (Chris Corday/CBC)

Zhao's representative pointed out that the Rosemary — now listed at $19 million — had been on the market for more than a year with no buyers but "admitted that 'the optics don't look good.'"

Judges have issued jeopardy orders in previous cases where large sums of cash have been found in the trunk of an automobile or in the pocket of a taxpayer's housecoat.

Federal Court Justice Cecily Strickland concluded that, while Zhao's "conduct of his affairs" may not fit with that kind of behaviour, his reported income raised questions given his lifestyle.

"Accordingly, the nature of the assessment raises a reasonable apprehension that Mr. Zhao had not been conducting his affairs in 'an orthodox fashion' and that it would be difficult to trace or recover the funds for the tax debt," she concluded.

Zhao could not be reached for comment.

Trump Organization official Allen Weisselberg pleads guilty

to tax fraud, grand larceny

CFO may be called to testify when the Trump Organization goes on trial

The Associated Press · 

Posted: Aug 18, 2022 11:21 AM ET 

The Trump Organization's former chief financial officer Allen Weisselberg arrives at court on Thursday in New York. Weisselberg pleaded guilty to charges that he accepted more than $1.7 million in off-the-books compensation from the

former president's company over several years, including untaxed perks like rent, car payments and school tuition.

(Yuki Iwamura/The Associated Press)

A top executive at former U.S. president Donald Trump's family business pleaded guilty Thursday to evading taxes in a deal that could potentially make him a star witness against the company at a fall trial.

Trump Organization chief financial officer Allen Weisselberg pleaded guilty to all 15 of the charges he faced in the case, which included charges of tax fraud, grand larceny and falsifying business records. He was accused of dodging taxes on lavish fringe benefits he got from the company, including lease payments for a luxury car, rent for a Manhattan apartment and private school tuition for his grandchildren.

Seen as one of Trump's most loyal business associates, Weisselberg was arrested in July 2021. He is the only person to face criminal charges so far in the Manhattan district attorney's long-running investigation of the company's business practices.

Judge Juan Manuel Merchan agreed to sentence Weisselberg, 75, to five months incarceration and five years probation at New York City's Rikers Island jail complex, although he will be eligible for release much earlier if he behaves well behind bars. The judge said Weisselberg will have to pay nearly $2 million US in taxes, penalties and interest. 

Weisselberg said nothing as he left court, offering no reply when a journalist asked him whether he had any message for Trump.

Weisselberg's lawyer, Nicholas Gravante Jr., said his client pleaded guilty "to put an end to this case and the years-long legal and personal nightmares it has caused for him and his family."

"We are glad to have this behind him," the lawyer said.

50-year relationship with company

The plea bargain also requires Weisselberg to testify truthfully as a prosecution witness when the Trump Organization goes on trial in October on related charges. The company is accused of helping Weisselberg and other executives avoid income taxes by failing to accurately report their full compensation to the government.

Trump himself is not charged in the case.

Testimony by Weisselberg could potentially weaken the Trump Organization's defence. If convicted, the company could face fines or potentially be placed on probation and be forced to change certain business practices.

Reaction from the Manhattan DA:

Weisselberg's professional relationship with Trump and Trump's late father, Fred, dates back to 1973.

"Today Allen Weisselberg admitted in Court that he used his position at the Trump Organization to bilk taxpayers and enrich himself," Manhattan District Attorney Alvin Bragg said in a lengthy statement.

"We look forward to proving our case in court against the Trump Organization," said Bragg.

Corruption is Everywhere > Afghan Son Buys $20m Mansion; Kurz Steps Down Under Investigation; Czech PM Edged Out in Election

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Son of former Afghan defense minister buys $20 million

Beverly Hills mansion, media reveals

8 Oct, 2021 21:42

Carla Ridge Residence in Beverly Hills, bought by the son of a former Afghan defense minister (FILE PHOTO)

©  Woods+Dangaran architects

The US government spent $85 billion on the Afghan military, only to see it surrender to the Taliban without a fight. Now the son of a former defense minister is spending millions to buy a luxury mansion with a view of Los Angeles.

A man by the name of Daoud Wardak has recently bought the Trousdale Estates property in Beverly Hills for $20.9 million, Yahoo News reported citing real estate records. He was described as an “ethnic Pashtun refugee” born in 1977, with public records showing him as president of AD Capital Group, based in Miami, Florida.

Wardak already owns a $5.2 million (home?) at the St. Regis Bal Harbour resort in Miami Beach, according to the same sources. His new Beverly Hills mansion, known as the Carla Ridge Residence, was recently redesigned in a “contemporary minimalism” style and offers views of the Los Angeles skyline through its glass walls.

Daoud is the younger son of Abdul Rahim Wardak, who served as defense minister in the US-backed government in Kabul between 2004 and 2012. The former mujahideen fighter was a key player in setting up the Afghan National Army – the same force that collapsed without a fight in August, leaving the Taliban in control of the country even before the US troops had a chance to leave.

The Pentagon expended an estimated $85 billion over the past 20 years on the ANA, including weapons, equipment and paying the soldiers’ salaries. There were persistent allegations over the years that some ANA commanders were falsifying the number of troops under their command (so-called “ghost soldiers”) so they could pocket the difference.

While Wardak toured western capitals to advocate for funding the ANA, he clearly didn’t believe in the future of Afghanistan enough to leave his children there. Both Daoud and his older brother Hamed ended up in the US, where Hamed ran a military contracting company NCL Holdings, getting paid by the Pentagon to secure supply routes in Afghanistan.

Hamed Wardak was also mentioned as CEO of Ludus Athletics, a “lifestyle brand inspired by Miami” with a motto of “LOVE THE WORLD,” which organized a beach volleyball tournament in March 2012. Less than five months later, his father was ousted from his defense ministry perch in a parliamentary no-confidence vote.

Ludus appears to be defunct now, however, and appears nowhere in Hamed Wardak’s LinkedIn biography.

US President Joe Biden announced in March that all US troops would be withdrawn from Afghanistan by September, insisting that the Afghan army was more than capable of holding off the Taliban. Instead, the Taliban captured Kabul without a fight by August 14, leaving the US scrambling to evacuate thousands of Americans and Afghan allies via the capital’s civilian airport. 

Biden described the airlift that brought out 124,000 people – but left some US citizens and many more Afghan allies behind – as an “extraordinary success,” while the Pentagon leadership rejected calls to resign in the aftermath.

Likewise, no one was disciplined over the deaths of 13 US troops and more than 170 Afghan civilians in the August 26 suicide bombing at the airport – or the retaliatory drone strike two days later, which killed 10 innocents including 7 children, instead of a suspected terrorist.

Austria’s Sebastian Kurz steps down as chancellor amid

new corruption scandal

9 Oct, 2021 17:53 / Updated 2 hours ago

Sebastian Kurz. © Reuters / Leonhard Foeger

Austrian Chancellor Sebastian Kurz on Saturday said he’s resigning amid a corruption probe that threatened to unravel his ruling coalition. Kurz, who’s replaced by his FM, denies the allegations, vowing to fight to clear his name.

Kurz said in a televised statement on Saturday that he is relinquishing his role as chancellor and will become leader of the Austrian People’s Party (ÖVP) in parliament as he works to clear his name of graft allegations. He called for Minister of Foreign Affairs Alexander Schallenberg to replace him as chancellor.

The move averts a “no-confidence” vote after Austria’s Greens Party, which had campaigned on a promise of “clean politics” before joining the ÖVP-led ruling coalition last year, called on Kurz to step down. Prosecutors said on Wednesday that they were targeting Kurz and nine others on suspicion of bribery and other corruption offenses.

Given that ÖVP couldn’t pass motions without the support of its junior coalition partner, “I would therefore like to make way in order to end the stalemate, to prevent chaos and to ensure stability,” Kurz said in his Saturday statement.

He added that in the current phase of the Covid-19 pandemic and Austria’s economic recovery, what the nation needs now is “stability and responsibility.”

At the same time, Kurz continued to deny wrongdoing, vowing, “I will, of course, use the opportunity to refute and disprove the accusations that have been made against me.”

Opposition leaders had reportedly planned to introduce a no-confidence motion in Parliament next Tuesday. The Greens said on Friday that Kurz, who had already been under investigation for alleged perjury in a separate case, was no longer fit to lead as chancellor. The environmentalist party added that ÖVP needs to appoint an “irreproachable person” to replace Kurz.

Kurz, 35, was Austria’s chancellor from December 2017 to May 2019 and swept to power again in January 2020, after his conservative party won nine additional National Council seats and came to terms with the Greens on a ruling coalition. He has been a vocal critic of European Union asylum-seeker policies and said in August that Austria wouldn’t accept any more Afghan refugees.

Being a very suspicious person, I can't help but wonder if there is a link between Kurz's attitude toward Muslim migrants and the corruption probe? I really like this young man and hope this is not the end of his brilliant career.

Carl Bildt, co-chairman of the European Council of Foreign Relations, said that with Kurz’s decision to step down, “the immediate crisis in Austria is over.” If the Greens accepts the choice of Schallenberg as chancellor, the ruling coalition will likely hold together.

Czech PM edged out in narrow election, after corruption claims

in wake of Pandora Papers bolster opposition

9 Oct, 2021 17:45 / Updated 3 hours ago

(L) Petr Fiala. © Reuters / Milan Kammermayer; (R) Andrej Babis. © AFP / MICHAL CIZEK

Czech center-right opposition group Together is set to beat Prime Minister Andrej Babis’ ANO party in national elections. Babis was beset by corruption allegations after being named in the Pandora Papers ahead of the vote.

Voting in the Czech Republic took place on Friday through to midday on Saturday, and with 99% of ballots counted that evening, the center-right Together coalition is taking 27.69% of the vote – a hair above the 27.23% taken by Babis’ ANO party. The liberal Pirates/Mayors coalition are coming in third, with 15.5%.

Earlier results showed the ANO in the lead, but even before Together pulled ahead, both opposing coalitions had scored an overall parliamentary majority. At present, Together and the Pirates/Mayors have landed 108 seats in the 200-seat lower house.

President Milos Zeman has promised Babis the first shot at forming a government if the ANO wins the most votes, which it technically did, given that Together is a coalition of three smaller parties. Nevertheless, Together leader Petr Fiala and Pirates/Mayors leader Ivan Bartos have both stated that they will begin talks aimed at forming a government without Babis’ involvement, and it remains unclear whether Zeman will go back on his word. Both Together and the Pirates/Mayors have ruled out working with the ANO, which they see as a populist and fiscally irresponsible party.

Babis was an enormously successful businessman before taking office in 2017, and has an estimated net worth of $3.4 billion. His time in office has been marred by accusations of corruption and conflict of interest, however, as the business empire he controls has received EU funding. 

Babis is also one of 300 Czechs mentioned in the Pandora Papers, a trove of recently leaked documents laying out the network of shell companies and offshore banks the rich and powerful use to evade taxes. The investigation alleges Babis transferred nearly 400 million Czech crowns ($18.2 million) through a group of overseas firms to buy an estate on the French Riviera. According to the papers, Babis did not declare the purchase, but he is not accused of breaking any law.

Compounding the Pandora Papers revelations, Babis’ handling of the coronavirus pandemic was also expected to hamper his re-election chances. Last year’s lockdowns were unpopular, and the country has also suffered one of the worst death rates of any European nation, with more than 30,000 people dying of the virus out of a population of 10 million.

However, Babis has promised to raise public sector wages and pensions, and his hardline anti-immigration stance is a popular one, as is his opposition to closer ties with Brussels. In polls taken before the release of the Pandora Papers, Babis’ ANO was the clear favorite to win.

Another anti-migrant leader on the edge of defeat. While it appears to be self-inflicted, I wonder what the possibilities are of Brussels having something to do with how the Pandora Papers scandal was handled in the media?

Corruption is Everywhere - Certainly in Kyrgyzstan's Presidency

Shots fired as Kyrgyz special forces storm mansion of

ex-president Atambayev 

Former Kyrgyz president, Almazbek Atambayev; Special Forces at his mansion. © Ruptly

A dramatic showdown, with gunfire and even fireworks, broke out amid scuffles outside the mansion of Kyrgyzstan’s former president, Almazbek Atambayev, as special forces were sent there to arrest him over corruption charges.

Armed troops clad in body armor stormed Atambayev’s residence in the village of Koi-Tash late on Wednesday as his supporters audaciously defended their man with sticks and stones.

Witnesses said shots were heard inside the mansion, but it wasn’t immediately clear who’d fired them. At least 15 people were wounded during the operation, according to the country’s Ministry of Health.

One of the special forces troops reportedly received a gunshot wound during the operation.

Atambayev was elected president in 2011, to replace interim president Roza Otunbayeva, one of the leaders of the 2005 “Tulip Revolution.” He had previously served as prime minister under President Kurmanbek Bakiyev, who ruled between 2005 and 2010, when he was overthrown in another revolution and fled to Belarus.

However, as soon as Atambayev retired in 2017, the new authorities in the Central Asian state launched an investigation after accusing the 62-year-old of concealing income, corruption, and other violations.

In June, parliament stripped Atambayev of his immunity and his official status as a former president. The politician has denied all accusations, saying that a “campaign of lies and slander” had been launched against him.