Corporate Corruption News Articles

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Climate change is serious business - in more ways than one. Capitalist 'bootleggers' have co-opted the environmental [movement] to fulfil their raison d'etre - making money. Thanks to the 'greenwash', the solutions could be worse than the problems. Sitting on the board of [a] virtuous-sounding group - the Alliance for Climate Protection (ACP) - is one of the world's most famous green champions, Al Gore. Alongside him sits Theodore Roosevelt IV. Theodore the Fourth is a ... managing director of Barclays Capital. Consider another environmental-economics powerhouse, Generation Investment Management (GIM). Gore founded it ... with the aid of David Blood - chief executive of Goldman Sachs Asset Management from 1999 to 2003. It is economics, not environmentalism, that has driven the search for ethically superior energy from "clean" sources derived from previously sacrosanct areas of wilderness, the exploitation of which has suddenly been legitimised, perhaps as new "energy farms" or for "biofuels". Likewise, previously off-limits coastal areas have been designated as not only suitable but also positively benign sites on which to drill for oil and gas. After all, the long-term interest - one might say the fuel - propelling countries is money. "Greenwash" is the term environmentalists use to describe businesses that present themselves as green although their practices are not.

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As record numbers of homeowners default on their mortgages, questionable practices among lenders are coming to light in bankruptcy courts, leading some legal specialists to contend that companies instigating foreclosures may be taking advantage of imperiled borrowers. Because there is little oversight of foreclosure practices and the fees that are charged, bankruptcy specialists fear that some consumers may be losing their homes unnecessarily or that mortgage servicers, who collect loan payments, are profiting from foreclosures. Bankruptcy specialists say lenders and loan servicers often do not comply with even the most basic legal requirements, like correctly computing the amount a borrower owes on a foreclosed loan or providing proof of holding the mortgage note in question. “Regulators need to look beyond their current, myopic focus on loan origination and consider how servicers’ calculation and collection practices leave families vulnerable to foreclosure,” said Katherine M. Porter, associate professor of law at the University of Iowa. In an analysis of foreclosures in Chapter 13 bankruptcy, the program intended to help troubled borrowers save their homes, Ms. Porter found that questionable fees had been added to almost half of the loans she examined, and many of the charges were identified only vaguely. Collectively they could raise millions of dollars for loan servicers at a time when the other side of the business, mortgage origination, has faltered. In one example, Ms. Porter found that a lender had filed a claim stating that the borrower owed more than $1 million. But after the loan history was scrutinized, the balance turned out to be $60,000. And a judge in Louisiana is considering an award for sanctions against Wells Fargo in a case in which the bank assessed improper fees and charges that added more than $24,000 to a borrower’s loan.

Many beer drinkers may not know that Anheuser-Busch has the organic blessing from federal regulators even though Wild Hop Lager uses hops grown with chemical fertilizers and sprayed with pesticides. The [USDA] is considering a list of 38 nonorganic ingredients that will be permitted in organic foods. Because of the broad uses of these ingredients — as colorings and flavorings, for example — almost any type of manufactured organic food could be affected, including cereal, sausage, bread and beer. Organic food advocates have fought to block approval of some or all of the proposed ingredients, saying consumers would be misled. "This proposal is blatant catering to powerful industry players who want the benefits of labeling their products 'USDA organic' without doing the work to source organic materials," said Ronnie Cummins, executive director of the Organic Consumers Assn. of Finland, Minn., a nonprofit group that boasts 850,000 members. With big companies entering what was formerly a mom-and-pop industry, new questions have arisen about what exactly goes into organic food. Many nonorganic ingredients, including hops, are already being used in organic products, thanks to a USDA interpretation of the Organic Foods Protection Act of 1990. In addition to hops, the list includes 19 food colorings, two starches, casings for sausages and hot dogs, fish oil, chipotle chili pepper, gelatin and a host of obscure ingredients (one, for instance, is a "bulking agent" and sweetener with the tongue-twisting name of fructooligosaccharides). Under the agency's proposal, as much as 5% of a food product could be made with these ingredients and still get the "USDA organic" seal.

The NHS is seeking at least Ł100m compensation from two drug companies who it alleges "fixed" the price of an ulcer drug in the late 1990s. The allegations relate to the sale and supply of ranitidine between 1997 and 2000. The NHS's Counter Fraud Service [CFS]...is currently investigating similar concerns in regard to around 30 other drugs. As in any case where a drug comes off patent, the NHS expected its price to fall, but this did not happen with ranitidine. The investigation into why this failed to happen has led to the High Court action against Generics, a subsidiary of the German pharmaceutical company Merck, and the British arm of the Indian company Ranbaxy. The CFS estimates that the NHS could have lost out on at least Ł100m, and possibly as much as Ł110m. It has already said it will sue seven companies over the sale of common medicines including warfarin and penicillin-based drugs.

The Bush administration ... has quietly killed off a Labor Department program that tracked mass layoffs by U.S. companies. The statistic ... comprised an easy-to-understand overview of which industries are in the greatest distress and which workers are bearing the brunt of the turmoil. Sharon Brown oversaw compilation of the mass-layoffs number at the Bureau of Labor Statistics in Washington. "This was a high-quality program, producing timely information on important developments in the labor market," Brown said. The $6.6 million in annual funding for the mass-layoffs program ... was channeled through the Labor Department's Employment and Training Administration. When that agency decided it needed more cash ... the Bureau of Labor Statistics was told to look elsewhere for its budget needs. Apparently no extra money was to be found anywhere within the Labor Department, which had a total budget of $44.4 billion last year, up from $39.2 billion in 2001. The same conclusion was reached in 1992 when the first President Bush canceled the Mass-Layoffs Statistics program. Now Bush the younger is following in his father's footsteps, once again deciding that the American people have no real need to know how many mass layoffs are made each month.

Four government auditors who monitor leases for oil and gas on federal property say the Interior Department suppressed their efforts to recover millions of dollars from companies they said were cheating the government. The auditors contend that they were blocked by their bosses from pursuing more than $30 million in fraudulent underpayments of royalties for oil produced in publicly owned waters in the Gulf of Mexico. "The agency has lost its sense of mission, which is to protect American taxpayers," said Bobby L. Maxwell, who was formerly in charge of Gulf of Mexico auditing. "These are assets that belong to the American public, and they are supposed to be used for things like education, public infrastructure and roadways." The lawsuits have surfaced as Democrats and Republicans alike are questioning the Bush administration's willingness to challenge the oil and gas industry. The new accusations surfaced just one week after the Interior Department's inspector general, Earl E. Devaney, told a House subcommittee that "short of crime, anything goes" at the top levels of the Interior Department. In another clash, frustrated federal auditors have complained that the Interior Department no longer allows them to subpoena documents from oil companies. Agency officials acknowledged that they have not issued any subpoenas in the last three years.

In Northern California's Humboldt County, voters decided by a 55-45 margin that corporations do not have the same rights...as citizens when it comes to participating in local political campaigns. Until Tuesday in Humboldt County, corporations were able to claim citizenship rights, as they do elsewhere in the United States. With the passage of Measure T...voters have signaled that they want out-of-town corporations barred from meddling in local elections. The "Yes on T" campaign was rooted in regard for the American experiment, from...references to Tuesday's election as a modern-day "Boston Tea Party," to the quote from Thomas Jefferson: "I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government." Just as Jefferson and his contemporaries were angered by dominance of the affairs of the American colonies by King George III and the British business combines...so Humboldt County residents were angered by the attempts of outside corporate interests to dominate local politics. Humboldt County residents...put Measure T on the ballot, declaring, "Our Founding Fathers never intended corporations to have this kind of power." Let us hope that the spirit of '76 prevailed Tuesday in Humboldt County will spread until that day when American democracy is guided by the will of the people rather than the campaign contribution checks of the corporations that are the rampaging "empires" of our age.

Global food companies are aggravating poverty in developing countries by dominating markets, buying up seed firms and forcing down prices for staple goods including tea, coffee, milk, bananas and wheat, according to a report to be launched today. Two companies dominate sales of half the world's bananas, three trade 85% of the world's tea, and one, Wal-mart, now controls 40% of Mexico's retail food sector. It also found that Monsanto controls 91% of the global GM seed market.

Almost half of all Americans believe the November elections have more influence than market forces. For them, the plunge at the pump is about politics, not economics. According to a new Gallup poll, 42 percent of respondents agreed with the statement that the Bush administration "deliberately manipulated the price of gasoline so that it would decrease before this fall's elections." Fifty-three percent of those surveyed did not believe in this conspiracy theory, while 5 percent said they had no opinion. The excitement—and suspicion—among U.S. motorists follows a post-summer decline in gasoline prices that even veteran analysts and gas station owners concede has been steeper than usual. The retail price of gasoline has plunged by 50 cents, or 17 percent, over the past month to average $2.38 a gallon nationwide, according to Energy Department statistics. That is 42.5 cents lower than a year ago, when the energy industry was still reeling from the aftermath of hurricanes Katrina and Rita, which damaged petroleum platforms, pipelines and refineries across the Gulf Coast. Fimat USA oil analyst Antoine Halff said there is no doubt that "the downturn in prices is welcome news from an electoral standpoint for the ruling party." But he scoffed at the notion that the U.S. president had the power to muscle around a global market.

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