The Bizarre Corruption Scandal at Bilfinger

Corruption is Everywhere - in Germany for sure

Bilfinger, one of Germany's best-known construction firms, pledged to clean up its global business practices as it pivoted to the oil sector. But when an investigator began digging into one of the company's deals in the Middle East, she suddenly fell ill - and things only got stranger from there.

By Rafael Buschmann, Jürgen Dahlkamp, Gunther Latsch and Jörg Schmitt; Der Speigel

Bilfinger has long been plagued by accusations of corruption.

In January 2017, Marie-Alexandra von Sachsen-Meiningen flew to the Persian Gulf. As "head of investigations" for the industrial construction company Bilfinger SE, she had deep insight into the firm, and was driven by a potentially dangerous curiosity to learn even more. Particularly about the muck left over from dirty deals in all corners of the world. Her job was to clear up cases of suspected corruption, to protect Bilfinger. What she didn't know was that her trip to the Gulf would be her last business trip on behalf of the company. And potentially the last one of her career.

Bilfinger was struggling for survival, and a man named Tom Blades had been charged with leading the company into a more promising future in the oil and natural gas industry. Blades, who was British, had significant experience in the oil industry and, after churning through four CEOs in just two years, including the former governor of the German state of Hesse, Roland Koch, he was considered the company's last hope.

His vision involved transforming Bilfinger from a construction company of 70,000 employees - a company that built the Olympic Stadium in Munich along with myriad bridges, tunnels and dams the world over - into a technical services provider for industry. He envisioned the new Bilfinger as a company focused on keeping factories running, and monitoring and repairing them as needed. One area of operations was the oil fields in the Middle East, a region where bribery is the rule rather than the exception.

Blades badly needed a quick win in the region, and a huge contract was in the offing in Oman.

In January of 2017, Marie-Alix von Meiningen was also headed for Oman. The head of the Bilfinger subsidiary in the country, a man who had landed one large deal after the other in the country, had disappeared without a trace and hadn't been seen for months. His disappearance had raised some uncomfortable questions: Had he been involved in bribery? Had all of Bilfinger's deals in Oman been bought?

Fired

But Meiningen never made it to Oman. She landed in Abu Dhabi, the first stop on her itinerary, and met up with a colleague who provided tea for the meeting. A short time later, she began feeling unwell and headed back to her hotel, where she spent the next three days suffering from hallucinations and high fever. She vomited blood, had trouble breathing and fainted repeatedly, as she would later tell friends.

She somehow made it back to Europe but was never able to resume her Oman investigation. On March 9, 2017, she was summarily fired, allegedly because she had hired private investigators in Oman and elsewhere without strictly following company regulations. The company had hired a lawyer specifically to find something, anything, that could be held against her.

Just six days after she was unceremoniously chucked out of the company, Blades finally announced the big deal he had been working on: an agreement with Petroleum Development Oman LLC extending Bilfinger's maintenance deal for an oil field in the country's north by three years. The contract was worth 200 million euros ($230 million). "The order confirms our new strategy: The Middle East is a growth market with potential for us," Blades said in a company press release. He must also have welcomed what the influential German daily Süddeutsche Zeitung wrote: "The contract signifies the dawning of a new era. Many observers had doubted that Blades would be able to change course."

There is much more to this story. It can be found here.

India to Strip Fugitive ‘Economic Offenders’ of Assets

Corruption is Everywhere - In India, they're fighting back

FILE PHOTO: Indian Empress superyacht © Darrin Zammit Lupi / Reuters

Indian lawmakers have approved the Finance Ministry’s proposal to punish offenders involved in economic crime and fraud of over $15mn, by stripping them of domestic assets, to deter them from fleeing abroad to escape prosecution.

On Saturday, the Union Cabinet, led by Prime Minister Narendra Modi, approved the Fugitive Economic Offenders Ordinance 2018, which allows the state to confiscate the property of offenders who flee the country. Counterfeiting currency, money laundering and fraud are some of the crimes listed in the bill, introduced in the lower house of Parliament on March 12.

“The Ordinance would lay down the measures to empower Indian authorities to attach and confiscate proceeds of crime associated with economic offenders and the properties of the economic offenders, and thereby deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts,” the government said in a release.

Those violators who have arrest warrants issued against them but dodge prosecution, or who refuse to return to India to face charges for crimes that amount to more than 1 billion Indian Rupee ($15 million), could now be stripped of all of their assets back home pending a trial or conviction. The regulations, the government believes, will “re-establish the rule of law” by “forcing” a defendant to appear before court.

“This would also help the banks and other financial institutions to achieve higher recovery from financial defaults committed by such fugitive economic offenders, improving the financial health of such institutions,” the government added.

In order to declare an individual an economic offender, authorities have to start proceedings against the suspect in a special court, established under the 2002 Prevention of Money-laundering Act. The court then issues a notice and failure to comply with this within six weeks can lead to an arrest warrant. However, if the offender appears in person before the court, the notice would be terminated.

Bags Containing $9.6M in Cash Spark Standoff at Somalia Airport

Corruption is Everywhere - UAE, Somalia

By Sommer Brokaw  

Somalia's security officials seized nearly $10 million over the weekend that arrived at Aden Abdulle Airport

in Mogadishu, Somalia. File Photo Dai Kurokawa/EPA-EFE

UPI -- Authorities have started an investigation into bags containing nearly $10 million that arrived on a plane at a Somali airport over the weekend.

Somalia security officials found the money in three unmarked bags on a Royal Jet plane at the airport in Mogadishu, Somalia's interior ministry said.

Royal Jet is a luxury airline based in the United Arab Emirates.

"The seized money is worth $9.6 million," the minister said. "Security agencies are currently investigating where the money came from, where it was going, the individuals involved and the reason for bringing money worth this amount into the country."

Senior security officials told Voice of America the three money bags have been placed in Somalia's central bank for storage.

Officials said the money was seized after diplomat Mohammed Ahmed Othman Al Hammadi's entourage tried to take it out of the airport, but security instructed them to have them scanned.

"The ambassador refused, walked back to the plane with three bags, and counterterrorism units confiscated the three bags," one officer said.

Al Hammadi told VOA the money was not intended for the UAE embassy, but rather the ministry of defense.

"It's for the salary of the Somali soldiers," he said.

Which Somali soldiers, is the question?

The seizure resulted in a standoff for hours between airport officials and UAE embassy staff.

Somalia and UAE relations have been tense since last June when Somalia decided to remain neutral in Persian Gulf political matters.

Brazilian Court Issues Arrest Warrant for Ex-President Lula

Corruption is Everywhere - Brazil Presidential Politics

A supporter of former Brazil president Luiz Inacio Lula da Silva shows a cardboard that's reads

"No prison for Lula!" © Paulo Whitaker / Reuters

Former Brazilian President Luiz Inacio Lula da Silva has been ordered to turn himself in by Friday afternoon to begin serving his 12 year sentence, after an appeals court authorized his immediate arrest on a conviction for graft.

The arrest warrant was issued by Brazilian federal Judge Sergio Moro on Thursday, a day after Supreme Federal Court (STF) dismissed Lula’s plea to remain free while he appeals the corruption conviction, which he dismisses as machinations by his political opponents.

According to the arrest order, Lula has until 5 pm local time Friday to turn himself to Federal Police in Curitiba. Apparently in order to avoid an escalation of tensions with Lula’s supporters, the federal judge barred authorities from using handcuffs on the former Brazilian president.

Due to the “dignity of the position” Lula had previously held, he will begin serving his prison term in specially reserved quarters, Moro's office was quoted as saying. “The former president will be separated from the other prisoners, without any risk for moral or physical integrity.”

One of Brazil's most popular political figures, da Silva, simply known as Lula, was convicted of money laundering and of passive corruption last July, and was sentenced to nine years behind bars. An appeals court in January upheld Lula's conviction and the court increased his sentence to 12 years. The latest developments would apparently block Lula’s re-election bid, despite strong public support.

Peruvian President Kuczynski Resigns Amid Corruption Probe

Corruption is Everywhere - President of Peru

The third President this week, and it's only Wednesday
2 Previous Presidents are also under investigation

By Danielle Haynes 

Peruvian President Pedro Pablo Kuczynski stepped down Wednesday after months of calls for his resignation. File Photo by Olivier Douliery/UPI | License Photo

UPI -- Peruvian President Pedro Pablo Kuczynski announced his resignation Wednesday amid an investigation into his connection to the Odebrecht corruption scandal.

Lawmakers have called on the president to step down for months after documents revealed Brazil-based Odebrecht paid $780,000 from 2004-07 to a consulting business set up by Kuczynski.

Last week, Kuczynski said he received a $700,000 payment from an Odebrect affiliate for contacts during a closed-door congressional hearing. The payment came between his time as prime minister and economy minister, and president, something critics said was a conflict of interest.

Even his prior supporters pushed him to resign in recent days amid allegations he attempted to reward members of Congress for their vote against his impeachment.

The 79-year-old is one of the highest-ranking politicians in Latin America to face downfall over the Odebrecht scandal. In a plea deal with the United States Justice Department last year, the construction firm acknowledged it paid nearly $800 million in bribes to secure infrastructure contracts, including $29 million to Peru during 2005 to 2014. The company was fined $2.6 billion over its role in the scandal.

Impeachment proceedings against Kuczynski were scheduled to begin Thursday.

Ex-South Africa President Faces 16 Counts of Corruption

Corruption is Everywhere - No surprise in South Africa

By Sara Shayanian 

Former South African President Jacob Zuma will face 16 counts of corruption in court, prosecutors said Friday. File photo by Peter Foley/UPI | License Photo

UPI -- Former South African President Jacob Zuma was charged Friday with 16 counts of corruption.

Prosecutor Shaun Abrahams said the former president was charged with fraud, racketeering and money laundering -- and said Zuma's numerous attempts at challenging the charges had failed.

Prosecutors say the charges stem from a $2.5 billion state arms deal and are related to nearly 800 instances of alleged wrongdoing.

"After consideration of the matter, I am of the view that there are reasonable prospects of successful prosecution of Mr. Zuma on the charges listed in the indictment," Abrahams said.

"I am of the view that a trial court would be the most appropriate forum for these issues to be ventilated and to be decided upon."

Zuma, 75, resigned as president last month amid pressure from the African National Congress.

South Africa's leader since 2007, Zuma said he disagreed with the ANC's decision to recall him. Cyril Ramaphosa, the only candidate nominated in South African Parliament, took over as president.

In 2016, Zuma as ordered by South Africa's top court to repay $15 million in public funds he used to upgrade his private home.

New South African President Wants to Seize Land from White Farmers Without Compensation

Corruption is Everywhere - will it be in Ramaphosa's South Africa?

South African President Cyril Ramaphosa © Mike Hutchings / Reuters

South Africa’s new president, Cyril Ramaphosa, has pledged to return the lands owned by white farmers since the 1600s to the black citizens of the country.

The government plans to accelerate land redistribution through expropriation without compensation.

“The expropriation of land without compensation is envisaged as one of the measures that we will use to accelerate the redistribution of land to black South Africans,” said Ramaphosa, who was sworn into office to succeed Jacob Zuma as president last week.

The millionaire ex-businessman Ramaphosa promised that land expropriation operations will not be a “smash and grab” exercise and promised to handle the matter properly, adding that people “must see this process as an opportunity.”

“No-one is saying that land must be taken away from our people,” he said, “Rather, it is how we can make sure that our people have equitable access to land and security of tenure. We must see this process of accelerated land redistribution as an opportunity and not as a threat,” he added during a speech to parliament on Tuesday.

Such a drastic move would not damage the country’s agriculture or economy, the South African president promised.  

“We will handle it with responsibility. We will handle it in a way that will not damage our economy, that is not going to damage agricultural production,” he said.

This I gotta see!

More than two decades after the end of apartheid in the 1990s, the ruling African National Congress (ANC) party is under pressure to tackle racial disparities in land ownership in South Africa. The country is home to over 50 million people, with whites owning most of the land.

According to a recent study, black South Africans constitute 79 percent of the population, but directly own only 1.2 percent of the country’s rural land. Meanwhile, white South Africans, who constitute 9 percent of the country’s population, directly own 23.6 percent of its rural land, and 11.4 percent of land in towns and cities, according to the Land Audit report.

Zimbabwe land grab

A similar program of land redistribution was carried out by then-Zimbabwean President Robert Mugabe in the late 1990s and early 2000s. Thousands of white farmers were forced from their lands.

However, food production plummeted without the experienced farmers’ contribution, and Zimbabwe’s economy suffered massively. In 2010, the Guardian reported that Mugabe used land reform to reward his allies rather than ordinary black Zimbabweans. 

In 2016, Mugabe signed a decree that foreign companies would face closure unless they sold or gave up 51 percent of their shares.

Speaking about the redistribution of land in his country, Ramaphosa said that “in dealing with this complex matter” South Africa would not “make the mistakes that others have made.”

Good luck with that, Cyril!

Ex-Bolivia President to Become First Former Head of State to Stand Trial in US

Corruption is Everywhere

 - and Death Squads often follow in South America

Gonzalo Sanchez de Lozada © Joyce Naltchayan / AFP

A federal judge has ruled that the former president of Bolivia must face a civil trial in the US. The case alleges the Bolivian military massacred at least 50 citizens in extrajudicial killings in 2003.

A judge in Florida ruled last week that former Bolivian President Gonzalo Sánchez de Lozada and his former defense minister, Jose Carlos Sanchez Berzain, must stand trial in the US, where they both live.

De Lozada was first elected in 1993 and remained in power until 2003. His regime was staunchly pro-US and pro-privatization. This is the first time that a former head of state will stand accused in a civil human rights trial in a US court. 

In 2016, a US appeals court held that the trial could proceed under the Torture Victim Protection Act (TVPA), which allows lawsuits in US federal courts for extrajudicial killings. District Court Judge James Cohn ruled last week that there was sufficient evidence to move to trial.

In October 2003, de Lozada’s military forces killed 67 people  and injured 400 more, mostly those who were poor and from the nation's indigenous Aymara communities. The citizens were protesting the privatization of Bolivia’s oil and gas reserves.

Mamani v. Sánchez de Lozada and Sánchez Berzaín, filed by families of eight Bolivians killed, alleges that the politicians ordered the extrajudicial killings in advance. Most of the violence took place in El Alto, a city overlooking the capital La Paz.

The trial has important social and political implications for the country’s indigenous population. “The trial will offer indigenous Aymara people, who have historically been excluded from justice, a chance to testify about events that led to dozens of deaths and hundreds of injuries,” Beth Stephens, an attorney for the Plaintiffs, told the Center for Constitutional Rights.

“The former president and his minister of defense must now listen as we testify about what happened,” said Teofilo Baltazar Cerro, a member of the indigenous Aymara community of Bolivia, which was heavily involved in the protests. “We look forward to this historic opportunity to have our day in court."

The trial will begin on March 5, in the federal court in Fort Lauderdale, Florida.

Sanchez de Lozada, nicknamed ‘Goni’, fled to the US in 2003. He is a multimillionaire mining executive who was educated in the US from a young age. He speaks Spanish with a noticeable American accent, which earned him the nickname ‘El Gringo’ in Bolivia.

Bolivia has been seeking de Lozada’s extradition from the US for over 10 years. In 2007, he was formally charged by Bolivian prosecutors with genocide over the 2003 incidents. The Obama administration refused to extradite him to Bolivia to stand trial in 2012, however.

The conflict in which the killings allegedly took place concerned the privatization of natural resources and the exploitation of Bolivia’s vast natural gas reserves. The protests become known as the ‘Gas Wars’ and ultimately led to the resignation of de Lozada.

In the US he became closely aligned with the administration of former President George W Bush. According to the Center for Public Integrity, he was listed in 2012 as the head of Petromina LLC, a mining advisory firm.

Much of Bolivia's oil and gas industry ended up in the hands of Amoco, Enron, and Shell. Brazil's Petrobas was involved in building pipelines to Brazil. How much money changed hands below the table is anybody's guess, but I suspect it was considerable.

Peru's Fujimori Goes Back to Trial for Death Squad Killings

Corruption is Everywhere - Certainly in Peru

By Sommer Brokaw  

Riot police officers blocked the passage of protesters during a demonstration against the pardon to ex-president

Alberto Fujimori, in Lima, Peru in December. File Photo by Eduardo Cavero/EPA-EFE

UPI -- Former Peru President Alberto Fujimori, age 79, will go back to trial on charges related to death squad killings in 1992.

A court ruled Monday that Fujimori could be tried despite a medical pardon months ago.

At issue is the death squad killings of six farmers in Pativilca, a central town in Peru, in January of 1992. Fujimori is now charged with authorizing the kidnapping, torture and killings of the six farmers.

Fujimori had been serving a 25-year prison sentence since 2014 for human rights abuses before a medical pardon was granted in December. These abuses involved authorizing the six farmers' killings as part of a larger conflict with left-wing rebels. Nearly 70,000 people died in the conflict.

President Pedro Pablo Kuczynski granted the pardon in December, sparking two nights of protests in Lima. Kuczynski cited "low blood pressure and an irregular heartbeat" in his decision.

Seriously, I've had that all my life! Kuczynski, himself, has been accused of corruption being named in Brazil's Odebrecht scandal. He has refused to step down.

Another Peruvian ex-president Alejandro Toledo (2001-2006) has also been implicated in corruption. It's almost like a requirement for the job!

Amnesty International praised the court's latest ruling.

"The decision not to apply the grace granted by President Kuczynski to Alberto Fujimori constitutes an important advance in the fight against impunity for the crimes that occurred in Pativilca, and reinforces the obligation of the Peruvian state to guarantee the right of victims to truth, justice and reparation," the statement from Amnesty International reads.

Pativilca, Peru

'We Will Wring the Neck of the Ukrainian Oligarchy,' Vows Deported Saakashvili

Corruption is Everywhere - Definitely in the Ukraine

By Jonathon Gatehouse, CBC News

Mikhail Saakashvili is gone from Ukraine, but he is unwilling to be forgotten.

The former president of Georgia, who became an ally and then a foe of Ukrainian President Petro Poroshenko, gave a fiery press conference in Warsaw, Poland, this morning following his forced deportation from Kiev yesterday.

"Poroshenko believes that he has beaten off the opponent whom he is fearful of the most. He falsified a case against me and threw me out of the country," said the 50-year-old opposition leader.

Ukrainian opposition figure Mikheil Saakashvili arrives for a news conference in Warsaw, Poland, on Tuesday.

(Kacper Pempel/Reuters)

"We will wring the neck of the Ukrainian oligarchy. They will be sent to prison, where they belong. I promise this."

The falling out between Saakashvili and Poroshenko, once university chums and then political admirers who bonded over their mutual mistrust of Russia, is operatic in scale.

Living in exile in the United States after his 2012 electoral defeat, and facing corruption charges at home, Saakashvili accepted his old friend's offer to become governor of Odessa in early 2015.

Saakashvili supporters rally in Kiev on Feb. 4. (Gleb Garanich/Reuters)

In the months that followed, Ukraine denied Georgia's attempts to extradite Saakashvili and even granted him citizenship.

But relations between the two leaders quickly soured. Saakashvili resigned from his job in late 2016 and started his own anti-corruption political party, the Movement of New Forces.

Last summer, Poroshenko stripped him of his Ukrainian citizenship while he was outside the country. In September Saakashvili stormed back across the border with Poland, carried by a crowd of supporters.

For months, he and members of his party have staged almost daily demonstrations outside of Ukraine's parliament calling for Poroshenko's ouster.

Saakashvili is detained by officers of the Security Service of Ukraine outside his apartment in Kiev on Dec. 5, 2017. (Valentyn Ogirenko/Reuters)

An initial attempt to deport Saakashvili last December was foiled by angry protesters who gathered outside of his Kiev apartment and pulled him from a police van.

But yesterday, Ukrainian authorities had the element of surprise when they descended on the opposition leader while he was eating lunch in a Georgian restaurant. CCTV footage shows helmeted riot police placing a bag over Saakashvili's head and hustling him out of the building.  An hour later, he was aboard a chartered jet on its way to Warsaw.

Saakashvili, who is now technically stateless, having given up his Georgian citizenship in 2015, says the fight is not over.

Ukrainians holding a banner reading 'Poroshenko is not our president' demonstrate in front of President Petro Poroshenko's office in Kiev on Monday.

(Sergei Supinsky/AFP/Getty Images)

Addressing Ukraine's "idiots" at today's press conference, he vowed to recover his passport and head back to Kiev.

"I will be almost as efficient in Europe over the next few weeks as I used to be in Ukraine," he said, and then switched into the third person.

"Saakashvili at liberty is more dangerous for Poroshenko than Saakashvili whom they persecuted in Ukraine. We will peacefully oust the oligarchs from power."

Maldives Leader Orders Arrests of Supreme Court Judges

Corruption is Everywhere - Even the Maldives

By Sara Shayanian 
Sky News

UPI -- The president of the Republic of Maldives is accusing the country's Supreme Court of plotting a coup to overthrow the government amid ongoing political turmoil.

President Abdulla Yameen's charge comes after he called for a state of emergency Monday amid protests for the government to release opposition leaders from prison after the Supreme Court said their trials were politically motivated.

The opposition leader is a former President of the Maldives.

The State of Emergency was called for a period of 15 days.

After Yameen's declaration, police arrested Chief Justice Abdulla Saeed and Supreme Court Judge Abdulla Hameed.

Tuesday, Yameen accused the chief justice and the high court of pushing for his impeachment from office.

"The constitution clearly states how a president can be impeached. The Supreme court has no authority to do so," Yameen said. "But when the chief justice were pushing for these things beyond his mandate or jurisdiction, we had to take it seriously. We had to find out why."

The president said the "entire judiciary" could be compromised against the government.

Could there be a reason for that? Or, could paranoia be setting in?

"We needed to find out if there was any link between the sudden change in the mentality of the chief justice and his new found riches. No one is above the law. Not even judges. I had no other choice. No other way to save the nation," he added.

After the state of emergency was called, security forces were allowed to make arrests, public gatherings were banned and soldiers were posted at the doors of opposition buildings.

"I had to declare a national emergency because there was no other way to investigate these judges," Yameen said. "We had to find out how thick the plot or coup was."

Former President Mohammed Nasheed called from exile for other countries to intervene in the political crisis.

On Twitter, Nasheed asked India to send military assistance and for the United States to stop financial transactions of Maldives leaders.

The U.S. National Security Council said it stands "with the people of Maldives."

"The Maldivian government and military must respect the rule of law, freedom of expression, and democratic institutions," The council said on Twitter. "The world is watching."

Nasheed has called for Yameen to be removed from power.

"Maldivians have had enough of this criminal and illegal regime," Nasheed said. "President Yameen should resign immediately."

India and the USA should be reluctant to intervene for fear of enabling a genuine coup. The truth about who in the Maldives is corrupt needs to be determined and exposed, only then can a fair decision be made as to whether or not to intervene.

IMF: Venezuela Inflation Will Increase 13,000% This Year

By Allen Cone 

UPI -- Venezuela's inflation will soar 13,000 percent this year, though other Latin American countries have much better economic prospects, the International Monetary Fund said in a revised forecast Thursday.

The increase -- 130 times greater than last year -- is more than five times the inflation previously projected by IMF.

Of course, this means the Bolivar is rapidly becoming worthless. In 2008, Venezuela issued new Bolivars - Bolivares Fuertes which was worth 1000 of the original Bolivars. Rampant inflation made it necessary, and will probably make it necessary again.

Last year, price increases were 2,400 percent -- the biggest in the world.

The IMF wrote in the report that the rise is "fueled by monetary financing of large fiscal deficits and the loss of confidence in the nation's currency."

President Nicolas Maduro's government has attempted to control inflation by refusing to loosen foreign-exchange controls and price caps that have increased the short supply of all sorts of products, including food to medicine.

Also, Venezuela's real gross domestic product is projected to fall by about 15 percent for a cumulative GDP decline of almost 50 percent since 2013. The growth forecast for 2019 is a 15 percent decline and 6 percent drop in 2019.

"This trend is the result of significant micro-level distortions and macroeconomic imbalances compounded by the collapse in oil exports -- initially from the sharp fall in oil prices in mid-2014 and, more recently, from the collapse in domestic oil production," the IMF said in the report.

The United States last month sanctioned Venezuela government and military officials accused of having associations with corruption and repression. The Treasury Department said "corruption and repression" has continued to grow under Maduro's regime.

The IMF revised its projections of other nations in Latin America with the GDP predicted to increase 1.9 percent in 2018 and 2.6 in 2019 after it was 1.3 percent last year.

Other Latin Americans in Central America and parts of the Caribbean will benefit from stronger U.S. growth, the report said. And South America's economy has increased due to the end of recessions in Brazil and Argentina, as well as higher prices for the raw materials to export, according to the report.

"Recent trends in the world economy and financial markets are good news for Latin America," Alejandro Werner, head of the IMF's Western Hemisphere department wrote in the report. "Global growth and trade are on an upswing, and we expect the momentum to continue in 2018. Stronger commodity prices have also helped the region rebound."

The IMF specifically was high on Ecuador after coming off its recession because of higher oil prices and greater acceptance to financial markets. IMF boosted its 2018 GDP outlook to 2.2 percent from 0.6 percent.

And the IMF cited Chile's growth prospects because of continued improvement in copper prices and business sentiment -- 2.2 percent in 2018.

Mexico's GDP is predict to grow 2.3 percent in 2018 and 3.0 percent in 2019 on the strength of higher growth in the United States, now pegged higher at 2.7 percent in 2018 and 2.5 percent in 2019.

Brazilian Court Upholds Conviction of Former President Lula da Silva

Corruption is Everywhere - Especially in Brazil

By Daniel Uria  

A Brazilian appeals court upheld a corruption conviction against former president Luiz Inacio Lula da Silva, as he prepares to run in the country's upcoming presidential election. File Photo by Andrew Harrer/Pool/UPI | License Photo

UPI -- A Brazilian appeals court unanimously upheld a corruption conviction against former president Luiz Inacio Lula da Silva on Wednesday.

The three-judge panel's decision to uphold the conviction could prevent the 72-year-old da Silva's candidacy in Brazil's upcoming election. The country's "clean record law" bars politicians whose convictions are upheld on appeal from running for office.

"There is proof beyond a reasonable doubt that the ex-president was one of the actors, if not the principal actor, of an ample corruption scheme," said Joao Pedro Gebran Neto, one of the judges.

The court ruled against jailing Lula da Silva as he fights the conviction, but increased his sentence from 9 years to 12 years in prison.

"At a minimum, he was conscious and gave support to what happened," Neto said.

Lula Da Silva was convicted of receiving more than $1 million in bribes, including a newly refurbished beachfront apartment, as part of a corruption scandal known as "Operation Car Wash."

The former president can appeal the conviction to Brazil's Superior Electoral Court and the Supreme Federal Court and apply to an electoral tribunal for a special exemption to run for president if the appeal process extends through the election.

He delivered a message of defiance while speaking at a rally of his supporters in Porto Alegre, home of the Fourth Regional Federal Court of Appeals, on Tuesday.

"Only one thing is going to remove me from the streets of this country and that will be the day that I die," Lula da Silva said. "Until then, I will be fighting for a fairer society."

His Workers' Party backed up Lula da Silva in a statement and called on his supporters to take to the streets.

"If they think this story ends with today's decision they're sorely mistaken," the party said. "We won't give up in the face of this injustice."

Hondurans Hold Mass Protests Calling for New Elections

Corruption is Everywhere - Honduran Politics

By Daniel Uria  

Presidential candidate Salvador Nasralla (L) and former President Manuel Zelaya of Honduras' Opposition Alliance led a rally to call for new elections after the Supreme Electoral Tribunal named Incumbent President Juan Orlando Hernandez winner of the country's controversial November elections. Photo by Jose Valle/EPA

UPI -- Thousands of protesters marched in Honduras on Saturday to oppose what they called a "fraudulent" presidential election.

An estimated 80,000 supporters gathered in San Pedro Sula to call for former Opposition Alliance presidential candidate Salvador Nasralla to replace President Juan Orlando Hernandez in office.

"The people want Salvador Nasralla as the President of Honduras," Nasralla told the crowd. "The people won't stand for this dictatorship, we won't stop until we've removed the corrupt from power."

Protesters waved flags while marching toward the city's Central Park, as demonstrators followed along in vehicles honking their horns.

Former President Manuel Zelaya, the director of the Opposition Alliance, led the march and once again called for a national strike from Jan. 20 to Jan. 27 in the lead up to Hernandez's inauguration.

"We're calling for a national strike blocking all the main public highways, seaports, airports, until the will of the people is respected," he said.

Nasralla refuses to recognize the results of the Nov. 26 election, plagued with accusations of fraud and corruption. He asserts that he won the polls and would be willing to repeat them.

Honduras' Supreme Electoral Tribunal, or TSE, declared Hernandez the official winner of the election with 42.95 percent of the votes versus Nasralla's 41.42 percent on Dec. 17.

The Opposition Alliance presented 12 "irregularities" that occurred during and after the polling process, but the TSE said the appeal didn't establish grounds to nullify the election.

Narsalla has accused the TSE of "manipulating" polling numbers to benefit Hernandez. 

Election observers from the European Union have said the TSE and the National Party must "depoliticize."

Peru's President Kuczynski Refuses to Resign over Corruption Allegations

Corruption is Everywhere - Certainly in Peru

Lawmakers said they have documents that prove Kuczynski was paid $780,000 from Odebrecht while he was a government minister

By Susan McFarland 

President Pedro Pablo Kuczynski of Peru looks on during a meeting with U.S. President Donald Trump in the Oval Office of the White House. Lawmakers on Thursday have called for Kuczynski to step down for his connection with a corruption probe but he refused to resign, denying the allegations. Pool Photo by Olivier Douliery/UPI | License Photo

See also:
Peru's Ex-President Toledo Denies Taking $20M in Bribes

UPI -- Despite lawmakers calling President Pedro Pablo Kuczynski to step down for his connection with a corruption probe, he refused to resign on Thursday.

Lawmakers said documents received from Brazil-based Odebrecht prove that before Kuczynski became president, from 2004 to 2007 the company paid $780,000 to a financial-consulting business set up by Kuczynski, the company's sole director.

Kuczynski denies any contact with Odebrecht and refutes claims that he received money from the company while he was a government minister. The president also said he would allow investigators to examine his bank accounts.

During a video statement Thursday, Kuczynski acknowledged owning the company, Westfield Capital, but said a business partner dealt with Odebrecht contracts during that time.

"I'm not going to abdicate my honor, my values or my responsibilities as president of all Peruvians," Kuczynski said. "I won't run. I won't hide. I have no reason to do so."

In a plea deal with the United States Justice Department last year, Odebrecht acknowledged it paid nearly $800 million in bribes to secure infrastructure contracts, including $29 million to Peru during 2005 to 2014. The company was fined $2.6 billion over its role in the scandal.

Lawmakers from the Popular Force party said Kuczynski should immediately step aside; the Broad Front party said Congress should force the president out.

Three Charged in Murder of Maltese Journalist

Corruption is Everywhere - Even in Malta

By Daniel Uria 

Three men were charged in the murder of Maltese journalist Daphne Caruana Galizia on Tuesday.

Photo by Olivier Hoslet/EPA

(UPI) -- Three men have been charged in the murder of Maltese journalist Daphne Caruana Galizia, who was killed by a car bomb last month.

The three suspects include brothers George Degiorgio,55, and Alfred Degiorgio, 53, as well as Vincent Muscat, 55.

All three pleaded not guilty and were remanded in custody after a preliminary court hearing.

They were among 10 Maltese nationals arrested on Monday in connection with Galizia's murder.

Investigators focused on the three suspects based on telephone intercepts including a call from a mobile phone that allegedly triggered the bomb, the Times of Malta reported.

Galizia, 53, was killed when a car bomb exploded in her vehicle in October, after she filed a police report 15 days earlier to reveal she had been threatened.

Prior to her death she accused Malta's Prime Minister Joseph Muscat of wrongdoing, linking him and his wife to the Panama Papers -- some of which detailed financial information including fraud and tax evasion.

Honduras Sends in Troops to Quell Violent Protests over Disputed Election

Corruption is Everywhere - Certainly in Honduras

© Moises Ayala / Reuters

Honduras has handed emergency powers to its army and police to quell the unrest and protests that have been wracking the country this week as votes are counted in a highly disputed and scrutinized election.

As of 11pm Friday, the government had suspended constitutional guarantees and imposed a curfew for the next 10 days, aimed at stemming the protests which have led to at least one death and 20 injuries, as well as widespread looting, following the election which took place last Sunday.

A supporter of presidential candidate Salvador Nasralla holds a bag with cookies next to burning

tires during a protest caused by the delayed vote count for the presidential election at Villanueva

neighborhood in Tegucigalpa, Honduras, December 1, 2017 © Edgard Garrido / Reuters

"The suspension of constitutional guarantees was approved so that the armed forces and the national police can contain this wave of violence that has engulfed the country," government official Ebal Diaz said on national television on Friday.

The protests have been ongoing over the past few days as the opposition, suspecting electoral fraud, have demanded a recount of the vote.

Police officers and the Army guard the city after the Honduras government enforced a curfew on Saturday

while still mired in chaos over a contested presidential election that has triggered looting and protests

in Tegucigalpa, Honduras December 2, 2017 © Jorge Cabrera / Reuters

On Wednesday, all parties to the election signed a document vowing to respect the final result of the ongoing vote count. However, a few hours later the electoral tribunal claimed there had been a computer glitch, which was followed by incumbent President Juan Orlando Hernandez gaining the lead over his main rival, former TV host Salvador Nasralla. 

The electoral tribunal is appointed by Congress, which is in turn controlled by Hernandez’s ruling center-right National Party, leading Nasralla to declare he would refuse to acknowledge the results unless there is a full recount in three disputed regions, amounting to over 5,000 ballot boxes.

"Here in Honduras, we are in a situation of fraud against me… I won the elections with 70 percent of the vote, with 116,000 more votes than Hernandez,” Nasralla said in a Facebook post to his supporters on Friday, teleSUR reported.

“Mathematically, it is impossible that this would change even with the 30 percent of the ballots left to count."

Though Nasralla has urged his supporters to protest peacefully, demonstrators have set up roadblocks, lit bonfires, and thrown rocks and wood at police, who have responded with tear gas and water cannons. Columns of smoke from burning tires could be seen rising above the capital, Tegucigalpa, and the Public Safety Department has reported disturbances in at least eight other cities. Schools, universities and businesses have announced they would close to avoid trouble over the weekend.

"Juan Orlando is a dictator and does not want to leave," one protester told RT’s Ruptly video agency.

Honduras has long been seen as a strategic country by the United States since the 19th and early 20th centuries, when it was a “banana republic” run by US corporations.

During the civil wars which plagued Central America in the 1980s, the country was used as a supply hub by the CIA – in cahoots with local drug traffickers – for the right-wing Contra rebels in Nicaragua. That era saw widespread extrajudicial killings and disappearances of leftists and opposition figures, and recent times have been no less turbulent. In June 2009, left-wing president Manuel Zelaya was overthrown in a coup, forced onboard a military plane and flown to nearby Costa Rica while still in his pajamas.

Honduras now suffers from widespread poverty as well as extreme levels of violence from warring street gangs and drug mafias. President Hernandez has been credited with lowering the homicide rate, though it remains one of the highest in the world, as well as boosting the economy. Backed by the United States, Hernandez is seen as an ally in the war on drugs. But he has also been accused of illegal fundraising and clinging on to power, while corruption and drug trafficking remain widespread.

His opponent, Salvador Nasralla, is a popular former TV host of Lebanese descent who has pledged to fight corruption. His Opposition Alliance Against the Dictatorship coalition includes the Liberty and Refoundation Party, or Libre, led by ex-president Manuel Zelaya. Zelaya has called for international observers to monitor the ongoing vote count to resolve the crisis.

They should have had international observers there from the beginning. Very few 3rd world leaders are willing to give up their power for the sake of fair elections.

Top Officials from French-Swiss Cement Giant Lafarge Suspected of Financing Terrorism

Corruption is Everywhere - even at Lafarge

But when it involves terrorists, it's especially heinous

© Gonzalo Fuentes / Reuters

Three top officials from French-Swiss industrial giant Lafarge have been put under formal investigation for alleged “financing of a terrorist enterprise,” judicial sources said. French prosecutors are looking into the company’s activities in Syria.

The scandal hit LafargeHolcim (created after France’s Lafarge merged with the Swiss company Holcim in 2015) in summer 2016 following a report in Le Monde. The paper claimed Lafarge paid Islamic State in 2013-2014 to continue operations in northern Syria. Lafarge’s Jalabiya plant in northern Syria was the conduit for the payments. 

On Friday Frederic Jolibois, who took over as manager of the Jalabiya plant in 2014, was charged with financing a terrorist company, violation of European regulations concerning the embargo on Syrian oil and endangering the lives of others, his lawyer Jean Reinhart said as cited by French media.

Jolibois has admitted that he bought oil from “non-governmental organisations”, in particular from Kurdish and Islamist groups. In 2011 the EU imposed sanctions on import of Syrian oil, as well as investment in the energy industry. Jolibois’ predecessor Bruno Pescheux and Lafarge security boss Jean-Claude Veillard, were also charged with financing terrorism and endangering others’ lives, AFP reported citing judicial sources. 

Pescheux, who managed the plant from 2008 till 2014, admitted that Lafarge paid up to $100,000 a month to an intermediary who turned out to be Firas Tlass, a Syrian business tycoon. Tlass, who was a minor partner of the plant, would send around $20,000 of this money to IS, Pescheux said. Veillard added that when IS finally took control of the plant in September 2014, Syrian employees “had to flee on their own”.“My client [Veillard] never had any decision-making power in Lafarge,” his lawyer Sebastien Schapira said, adding that he would contest Veillard’s indictment.

In March 2017 the firm admitted that it provided funds to “certain armed groups” and “sanctioned parties” in order “to maintain operations and ensure safe passage of employees and supplies to and from the plant.” All monetary transactions were made between 2013 and September 2014, when the plant was evacuated. A month later, in April 2017 LafargeHolcim CEO Eric Olsen announced his resignation. He denied any wrongdoing but said that his “departure will contribute to bringing back serenity to a company that has been exposed for months on this case.”

LafargeHolcim is a world leader in building materials and one of the biggest players in the cement, aggregate, and concrete industries. Around 90,000 employees are working for the group in more than 80 countries, according to the data from the company’s website.