Three news to start your week: September 2
South Africa is investigating alleged corruption of more than $7B at top state-owned companies
(Toronto Star)
According to a report published by the national anti-graft unit, South Africa is actively investigating alleged corruption amounting to over $7 billion at some of its major state-owned companies. These investigations are not new, with some dating back to 2018, and the Special Investigative Unit (SIU) has cited them in a report to a parliamentary committee to provide an update on their progress.
The companies under investigation include Transnet, Denel, Eskom, the National Lotteries Commission, South African Airways, and PRASA. The report reveals that at Transnet alone, around 60 suspicious contracts and hundreds of cases of conflict of interest and other alleged corruption, totaling nearly $4 billion of public funds, are being investigated.
Swiss court convicts executives over $1.8 billion 1MDB scandal
(Reuters)
Two top executives at an oil exploration company were found guilty of fraud by the Swiss Federal Criminal Court. The executives were accused of embezzling over $1.8 billion from Malaysia's state investment fund 1MDB. The verdict marks another pivotal moment in the 1MDB scandal, which has exposed widespread international corruption involving numerous financial institutions and individuals since the allegations emerged in 2015.
Prosecutors claimed that Patrick Mahony, a Swiss-British national, and Tarek Obaid, a Swiss-Saudi, orchestrated a joint venture with 1MDB by falsely presenting their company, PetroSaudi, as being backed by the Saudi government. Despite the lack of backing, the duo persuaded 1MDB's board to participate in the scheme in 2009 and defrauded the fund.
Elite lawyer indicted in Chile on charges including fraud and bribery
(Financial Times)
Luis Hermosilla, one of Chile's most influential lawyers and renowned for his close relationships with famous business leaders and senior politicians across the political spectrum, has been indicted on bribery, money laundering, and tax fraud charges.
Following a five-day hearing in Santiago, a judge ruled that Hermosilla should be detained in custody until trial. Though he vehemently denies all allegations, the investigation gained traction when an audio recording published by investigative news site Ciper Chile captured Hermosilla and a client discussing illegal payments to officials at Chile's tax authority and financial regulator. His statement, "We are doing a thing here that is a crime," further adds weight to the case against him.
