Government Corruption News Articles

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Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.

For the last year, whistle-blowers deep inside corporate America have been dishing dirt on their employers under a U.S. Securities and Exchange Commission program that could give them a cut of multimillion-dollar penalties won by financial regulators. A new bounty program has been an intelligence boon to the securities industry regulator, which has struggled to redeem itself after failing to stop Bernard Madoff's epic Ponzi scheme and rein in Wall Street before the 2008 financial crisis. Motivated by cash and the chance to rat out wrongdoers, tipsters are dropping more than names. Whistle-blowers and their attorneys are turning over boxes of documents, copies of emails and even audio recordings of alleged fraud or illegal overseas bribery. "We are getting very, very high-quality information from whistle-blowers," said Sean McKessy, director of the SEC's whistle-blower office. In the program's first year, 2,870 tips — or about eight a day — rolled in as of Aug. 12. And on Tuesday, one of them finally led to the agency's first payout: $50,000 to an informant who alerted regulators to an investment fraud. They declined to specify the case, careful to avoid identifying the whistle-blower. Some say shielding identities could pose a challenge for publicizing the program, but the anonymity probably will yield more information. The flood of new information doesn't necessarily mean the SEC will be more effective. In the case of Madoff, one whistle-blower repeatedly sounded the alarm years before the scheme blew up — to no avail.

Note: For deeply revealing reports from reliable major media sources on the collusion between government and the big banks, click here.

Kevin Ferry: There are Libor subpoenas raining down on the New York branches of these foreign banks today. So I think you really have to watch it. The [British Bankers' Association] is now saying they are going to go into ‘overhaul’ mode. So as if we don’t have enough things going on, you’re going to start opening up a Pandora’s Box here in the Libor sector of the market. I think what they’re going to do ... is basically put the old system in a coma, and work to devise something that’s a little bit better, and it’s going to be tricky. Doug Dachille: So what are they going to do with the euro/dollar futures and all the outstanding notion of principal of contracts linked to Libor? I mean is everybody going to convert their Libor interest rate swaps to cost of fund funds or Fed fund basis swaps or some other index? KF: Are you asking me? I’ve asked that question as high as I could ask it and I get blank stares. DD: It’s not clear that every bank has exactly the same Libor exposure, so it’s not clear that that cartel, in setting Libor and manipulating it, actually is as powerful as the cartel that manages oil prices. Yet I don’t hear any outrage of people routinely trading commodity derivatives and commodity futures, as much as I hear the outrage over euro/dollar futures and Libor-based interest rate swaps. Everybody assumes that’s what goes on when you trade commodity futures, but nobody ever really thought that was going on when you were trading euro/dollar futures.

Note: The text above is an excerpt from a CNBC news video. Click on the link above for the full report. For deeply revealing reports from reliable major media sources on corruption in the financial sector, click here.

For generations, most college-bound Americans paid reasonable fees to attend publicly financed state universities. But the bedrock of that system is fracturing as cash-strapped states slash funding to these schools just as attendance has soared. Places like Ohio State, Penn State and the University of Michigan now receive less than 7 percent of their budgets from state appropriations. As a result, public universities — which historically have graduated the majority of U.S. college students — are eliminating programs, raising tuition and accepting more out-of-state students, who typically pay significantly higher rates. The upshot of it all? Students face greater competition for admission, significantly higher tuition bills and bigger debt loads upon graduation. The state cutbacks also mean students are attending larger classes, frequently taught by part-time professors earning dismal salaries. In 2009, less than a quarter of all university faculty were full-time, compared with 45 percent in 1975, according to the American Association of University Professors. State and local spending for public university students dropped to a 25-year low in 2011. Tuition and fees at public, four-year colleges have jumped by more than 70 percent on average over the last decade. Those costs hit $8,240 in 2011-12, up from $4,790 in 2001-02.

Note: Is the military more important than education? Why do huge military budgets continue to be well funded while educational budgets are slashed? Is this the future we want to give our children?

Faulty computer modeling caused the equipment problems that are expected to keep the San Onofre nuclear plant dark through the summer, federal regulators said Monday. The plant has been out of service since Jan. 31, when operators discovered a small leak in one of the thousands of steam generator tubes that carry hot, radioactive water used to create steam to turn turbines that generate electricity. That led to the discovery that other tubes were rubbing against support structures and adjacent tubes, and wearing out more quickly than expected. Eight tubes failed pressure testing, which NRC officials said ... is the first time in the nuclear industry that more than one tube at a plant has failed. The wear is a safety concern because tube ruptures can release radiation. The plant's operator, Southern California Edison; the NRC; and Mitsubishi Heavy Industries, the manufacturer of the steam generators, have been studying the cause and extent of the wear. The NRC has ordered Edison to keep the plant shuttered until it has determined the cause and how to fix it. "This is a significant, serious safety issue," said NRC regional administrator Elmo Collins. "This is a very difficult technical issue, and to be honest, it's not one we've seen before." NRC officials said it appears that simulations by Mitsubishi underpredicted the velocity of steam and water flowing among the tubes by a factor of three or four. The high rate of flow caused the tubes to vibrate and knock against each other, leading to the wear. It was not clear why the computer modeling was so far off.

Note: For lots more on corruption in the nuclear power industry, click here.

Slashing spending while the economy is deeply depressed is a self-defeating strategy, because it just deepens the depression. So why is Britain doing exactly what it shouldn’t? Unlike the governments of, say, Spain or California, the British government can borrow freely, at historically low interest rates. So why is that government sharply reducing investment and eliminating hundreds of thousands of public-sector jobs, rather than waiting until the economy is stronger? The great American economist Irving Fisher explained it all the way back in 1933, summarizing what he called “debt deflation” with the pithy slogan “the more the debtors pay, the more they owe.” Recent events, above all the austerity death spiral in Europe, have dramatically illustrated the truth of Fisher’s insight. So why have so many politicians insisted on pursuing austerity in [the] slump? And why won’t they change course even as experience confirms the lessons of theory and history? When you push “austerians” ... they almost always retreat to assertions along the lines of: “But it’s essential that we shrink the size of the state.” These assertions often go along with claims that the economic crisis itself demonstrates the need to shrink government. So the austerity drive in Britain isn’t really about debt and deficits at all; it’s about using deficit panic as an excuse to dismantle social programs. And this is, of course, exactly the same thing that has been happening in America.

Note: For lots more on the devastating impacts created by the corruption of governments and financial corporations, click here.

The Pentagon is turning to the private sector, universities and even computer-game companies as part of an ambitious effort to develop technologies to improve its cyberwarfare capabilities, launch effective attacks and withstand the likely retaliation. The previously unreported effort, which its authors have dubbed Plan X, marks a new phase in the nation’s fledgling military operations in cyberspace. Plan X is a project of the Defense Advanced Research Projects Agency, a Pentagon division that focuses on experimental efforts and has a key role in harnessing computing power to help the military wage war more effectively. “If they can do it, it’s a really big deal,” said Herbert S. Lin, a cybersecurity expert with the National Research Council of the National Academies. “If they achieve it, they’re talking about being able to dominate the digital battlefield just like they do the traditional battlefield.” The five-year, $110 million research program will begin seeking proposals this summer. Among the goals will be the creation of an advanced map that details the entirety of cyberspace — a global domain that includes tens of billions of computers and other devices — and updates itself continuously. Such a map would help commanders identify targets and disable them using computer code delivered through the Internet or other means. Another goal is the creation of a robust operating system capable of launching attacks and surviving counterattacks.

Note: Isn't it ironic that the government continually seeks to restrict internet freedoms on the pretext of possible cyberattacks from abroad, while at the same time it carries out an aggressive cyberwar agenda of its own? For lots more reliable information on war manipulations, click here.

Amidst all the cries of Barack Obama being the most prolific big government spender the nation has ever suffered, Marketwatch is reporting that our president has actually been tighter with a buck than any United States president since Dwight D. Eisenhower. So, how have the Republicans managed to persuade Americans to buy into the whole “Obama as big spender” narrative? It might have something to do with the first year of the Obama presidency where the federal budget increased a whopping 17.9% —going from $2.98 trillion to $3.52 trillion. I’ll bet you think that this is the result of the Obama sponsored stimulus plan that is so frequently vilified by the conservatives…but you would be wrong. The first year of any incoming president term is saddled—for better or for worse—with the budget set by the president whom immediately precedes the new occupant of the White House.. So, how do the actual Obama annual budgets look? In fiscal 2010 (the first Obama budget) spending fell 1.8% to $3.46 trillion. In fiscal 2011, spending rose 4.3% to $3.60 trillion. In fiscal 2012, spending is set to rise 0.7% to $3.63 trillion, according to the Congressional Budget Office’s estimate of the budget that was agreed to last August. Finally in fiscal 2013 — the final budget of Obama’s term — spending is scheduled to fall 1.3% to $3.58 trillion.

Note: The chart included with this article comparing amount spent by recent president's is quite revealing.

A judge on [May 16] blocked enforcement of a recently enacted law's provision that authorizes indefinite military detention for those deemed to have "substantially supported" al Qaeda, the Taliban or "associated forces." District Judge Katherine Forrest in Manhattan ruled in favor of a group of civilian activists and journalists who said they feared being detained under a section of the law, which was signed by President Barack Obama in December 2011. "In the face of what could be indeterminate military detention, due process requires more," the judge said. She added that it was in the public interest to reconsider the law so that "ordinary citizens are able to understand the scope of conduct that could subject them to indefinite military detention." By issuing a preliminary injunction, the judge prevents the U.S. government from enforcing section 1021 of the National Defense Authorization Act's "Homeland Battlefield" provisions. During day-long oral arguments in March, Forrest heard lawyers for former New York Times war correspondent and Pulitzer Prize winner Chris Hedges and others argue that the law would have a "chilling effect" on their work. The judge said she worried at the government's reluctance ... to specify whether examples of the plaintiffs' activities ... would fall under the scope of the provision. "Failure to be able to make such a representation... requires the court to assume that, in fact, the government takes the position that a wide swath of expressive and associational conduct is in fact encompassed by 1021," the judge wrote.

Note: For more on the courageous journalist behind this lawsuit, Chris Hedges, see his excellent columns at this link. For reports from major media sources on governmental threats to civil liberties, click here.

Israel's former security chief has censured the country's "messianic" political leadership for talking up the prospects of a military strike on Iran's nuclear programme. Yuval Diskin, who retired as head of the internal intelligence agency Shin Bet last year, said he had "no faith" in the abilities of the prime minister, Binyamin Netanyahu, and the defence minister, Ehud Barak, to conduct a war. The pair, who are the foremost advocates of military action against Iran's nuclear programme, were "not fit to hold the steering wheel of power", Diskin told a meeting on [April 27]. "I don't believe in a leadership that makes decisions based on messianic feelings. Believe me, I have observed them from up close ... They are misleading the public on the Iran issue. They tell the public that if Israel acts, Iran won't have a nuclear bomb. This is misleading. Actually, many experts say that an Israeli attack would accelerate the Iranian nuclear race." Diskin's remarks followed a furore over comments made on [April 25] by Israel's serving military chief, Benny Gantz, which starkly contrasted with Netanyahu's rhetoric on Iran. Gantz said he did not believe the Iranian leadership was prepared to "go the extra mile" to acquire nuclear weapons because it was "composed of very rational people" who understood the consequences. In what was seen as a veiled rebuke to the prime minister, Gantz added: "Decisions can and must be made carefully, out of historic responsibility but without hysteria."

Note: For veteran geopolitical analyst Michel Chossudovsky's view that the "intelligence" on Iran's nuclear program is being "cooked" to justify an upcoming war, click here. On the preparations for this war by the US and UK, which go far beyond the usual contingency planning for future possibilities, click here. To understand how the politicians and military leaders manage to manipulate us into war after war, read what a highly decorated general had to say at this link.

Republican presidential candidate Mitt Romney is back on track after winning the Maine caucuses. What the headlines haven't told you is that what happened in Maine is the messiest caucus Republicans have had so far, and it may not be over yet. Maine is not a major state during national primaries. Only 24 delegates come out of Maine to the national convention. But what happened there over the weekend does more than raise eyebrows. It is enough to make you question, was the caucus fixed? Saturday night, February 11, the head of the Maine GOP, Charlie Webster, announced that Governor Mitt Romney won the Maine caucus by a slim margin. Official totals read Romney barely winning the caucus by less than 200 votes. The only problem, the governor was declared the winner with only 84 percent of precincts counted. Two counties, Washington County and Hancock County had not yet held their caucuses. In Hancock, County Republicans had decided to hold their caucus this Saturday on February 18. In Washington County, the state GOP canceled the caucus because of snow concerns. Turns out, the area only got a light dusting. The big problem here, Mr. Webster says even when those caucuses are held this Saturday, the votes won't count. And that is just the beginning of the problems in Maine.

Note: For a great series of diagrams showing the strong links and revolving door between US Government and big business, click here.

Interpol has been accused of abusing its powers after Saudi Arabia allegedly used the organisation's red notice system to get a journalist arrested in Malaysia for insulting the Prophet Muhammad. Police in Kuala Lumpur said Hamza Kashgari, 23, was detained at the airport "following a request made to us by Interpol" the international police cooperation agency, on behalf of the Saudi authorities. Kashgari, a newspaper columnist, fled Saudi Arabia after posting a tweet on the prophet's birthday that sparked more than 30,000 responses and several death threats. The posting, which was later deleted, read: "I have loved things about you and I have hated things about you and there is a lot I don't understand about you … I will not pray for you." Clerics in Saudi Arabia called for him to be charged with apostasy, a religious offence punishable by death. Reports suggest that the Malaysian authorities intend to return him to his native country. Kashgari's detention has triggered criticism by human rights groups of Malaysia's decision to arrest the journalist and of Interpol's cooperation in the process. Jago Russell, the chief executive of the British charity Fair Trials International, which has campaigned against the blanket enforcement of Interpol red notices, said: "If an Interpol red notice is the reason for [Kashgari's] arrest and detention it would be a serious abuse of this powerful international body that is supposed to respect basic human rights (including to peaceful free speech) and to be barred from any involvement in religious or political cases."

A growing number of states are seeking shiny new currencies made of silver and gold. Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place. Unlike individual communities, which are allowed to create their own currency -- as long as it is easily distinguishable from U.S. dollars -- the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make "gold and silver Coin a Tender in Payment of Debts." And since gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state lawmakers, he said. The states' proposals have been gaining steam among Tea Partyers and Republicans, many of whom also endorse a nationwide return to the gold standard, which would require the U.S. dollar to be backed by gold reserves.

Shortly after the 2010 earthquake in Haiti, which killed more than 300,000 people and left more than 1 million homeless, politicians worldwide promised large amounts of aid, and the international aid industry geared up to tackle one of the largest and most complex emergencies in history. Less than three months after the earthquake struck on 12 January 2010, world leaders gathered in New York and pledged billions for long-term reconstruction. Two years on, what's happened to all that money? Figures released by the UN special envoy for Haiti show that only 53% of the nearly $4.5bn pledged for reconstruction projects in 2010 and 2011 has been delivered. Venezuela and the US, which promised ... more than $1.8bn together have disbursed just 24% ($223m) and 30% ($278m) respectively. Some crucial sectors face particularly large funding gaps. Donors disbursed just $125m of the $311m in grants allocated to agriculture projects. [And] only $108m of the $315m in grants allocated to health projects has been disbursed. A separate report ... found that only 23 out of 1,490 contracts awarded by the US government after the earthquake had gone to Haitian companies, accounting for just $4.8m of the total $194m awarded between January 2010 and April 2011. Contractors from the Washington area took 39.4% ($76m).

Note: It seems that many governments see natural disasters like this at least partially as a means for awarding lucrative contracts to their own people and businesses.

Medicines to treat attention deficit hyperactivity disorder are in such short supply that hundreds of patients complain daily to the Food and Drug Administration (FDA) that they are unable to find a pharmacy with enough pills to fill their prescriptions. The shortages are a result of a troubled partnership between drug manufacturers and the Drug Enforcement Administration (DEA), with companies trying to maximize their profits and drug-enforcement agents trying to minimize abuse by people. Shortages, particularly of cheaper generics, have become so endemic that some patients say they worry almost constantly about availability. The DEA sets manufacturing quotas that are designed to control supplies and thwart abuse. Every year, the DEA ... allots portions of the expected demand to various companies. How each manufacturer divides its quota among its own ADHD medicines — preparing some as high-priced brands and others as cheaper generics — is left up to the company. Officials at the FDA say the shortages are a result of overly strict quotas set by the DEA, which, for its part, questions whether there really are shortages or whether manufacturers are simply choosing to make more of the expensive pills than the generics, creating supply and demand imbalances.

Note: This curious story reveals an astonishing level of government manipulation of the manufacturing and availability of medications, and corporations appear to go along with it because it keeps profits high. For lots more on government and corportate corruption from reliable sources, click here and here.

The stunning reality is that five years into the financial meltdown, it's business as usual on Wall Street - outlandish rewards for insiders with downside for almost everyone else. Occupy Wall Street protesters are right - something is wrong - but they're not sure what. Let's revisit the latest debacle - the implosion of yet another Wall Street darling, MF Global. The fallout of its bad bets on European bonds is hitting home hard, even in rural America, where many of its agricultural customers work. As the eighth-largest bankruptcy filing in U.S. history, MF Global represents just about everything that is wrong on Wall Street. 1. The cult of a Wall Street superstar. 2. Gambling disguised as investing. 3. The bail-me-out syndrome. 4. Enormous conflicts of interest. 5. Leverage on a grand scale. 6. Failure of regulators and the reform law. 7. Misappropriation of client funds. 8. Worthless rating agencies. 9. Golden parachutes soaring high. 10. Breakdown of morality. Wall Street will keep sucking huge sums out of our economy and putting 100 percent of us at risk unless the rules change. Most important, we must stop gambling and start investing again to build valuable companies. The next crisis will make 2008 look like a warm-up. Imagine how big the Occupy camps will be if that happens.

Note: For a treasure trove of reports from reliable sources which provide detailed information on all the problematic dimensions of Wall Street's operations described in the article above, click here.

No one could have known that when a Tunisian fruit vendor set himself on fire in a public square in a town barely on a map, he would spark protests that would bring down dictators in Tunisia, Egypt and Libya and rattle regimes in Syria, Yemen and Bahrain. Or that that spirit of dissent would spur Mexicans to rise up against the terror of drug cartels, Greeks to march against unaccountable leaders, Americans to occupy public spaces to protest income inequality, and Russians to marshal themselves against a corrupt autocracy. Protests have now occurred in countries whose populations total at least 3 billion people, and the word protest has appeared in newspapers and online exponentially more this past year than at any other time in history. Everywhere, it seems, people said they'd had enough. They dissented; they demanded; they did not despair, even when the answers came back in a cloud of tear gas or a hail of bullets. The root of the word democracy is demos, "the people," and the meaning of democracy is "the people rule." And they did, if not at the ballot box, then in the streets. Protest is in some ways the source code for democracy — and evidence of the lack of it. For steering the planet on a more democratic though sometimes more dangerous path for the 21st century, the Protester is TIME's 2011 Person of the Year.

Note: For a treasure trove of reports from major media sources that explain why protestors worldwide have been occupying their cities, click here.

Just after 6 a.m. on Dec. 5, under cover of darkness, nine Greenpeace activists cut through a fence at the Nogent-sur-Seine atomic plant 95 kilometers (59 miles) southeast of Paris and headed for a domed reactor building. They scaled the roof and unfurled a “Safe Nuclear Doesn’t Exist” banner before attracting the attention of security guards. Two remained at large for four hours. On the same day, two more campaigners breached the perimeter of the Cruas-Meysse plant on the Rhone, escaping detection for more than 14 hours while posting videos of their sit-in on the Internet. The security lapses ... come at a time when debate has intensified on France’s reliance on atomic power for three-quarters of its energy needs in the run-up to next year’s presidential elections. They also preempt next month’s release of the results of safety checks at France’s 58 reactors, commissioned in the aftermath of the Fukushima tragedy. Greenpeace said its activists exposed the biggest security lapse to date at the reactors that are operated by Electricite de France SA.

Note: For lots more on corporate and government corruption, click here and here.

Three days before the Dec. 7, 1941 Japanese attack on Pearl Harbor, President Roosevelt was warned in a memo from naval intelligence that Tokyo's military and spy network was focused on Hawaii. In the newly revealed 20-page memo from FDR's declassified FBI file, the Office of Naval Intelligence on December 4 warned, "In anticipation of open conflict with this country, Japan is vigorously utilizing every available agency to secure military, naval and commercial information, paying particular attention to the West Coast, the Panama Canal and the Territory of Hawaii." The memo, published in the new book December 1941: 31 Days that Changed America and Saved the World went on to say that the Japanese were collecting "detailed technical information" that would be specifically used by its navy. To collect and analyze information, they were building a network of spies through their U.S. embassies and consulates. Historian and acclaimed Reagan biographer Craig Shirley, author of the just released December 1941, doesn't blame FDR for blowing it, but instead [said] that it "does suggest that there were more pieces to the puzzle" that the administration missed. He compares the missed signals leading up to Japan's attack to 9/11, which government investigations also show that the Clinton and Bush administrations missed clear signals that an attack was coming. "So many mistakes through so many levels of Washington," said Shirley. "Some things never change."

Note: Explore powerful evidence that US president Franklin Roosevelt was baiting Japan into an attack on Pearl Harbor. For more along these lines, see concise summaries of deeply revealing war news articles from reliable major media sources.

The European Commission adopted new rules Nov. 14 regarding X-ray, or backscatter, body scanners at all airports in Europe. A press release ordered members of the European Union to remove X-ray scanners from its airports to avoid risking “citizens’ health and safety.” The news [brings] into question the continued use of the very same X-ray scanners in U.S. airports. While the Transportation Security Administration also employs millimeter-wave scanners in U.S. airports, X-ray scanners are the ones that have received more criticism from public-safety advocates. While ... the amount of radiation exposure from X-ray machines is very low, several studies have shown that a small number of cancer cases could result from scanning millions of passengers every year. Some critics of the scanners say that any small amount of cancer is too much to tolerate. Although the TSA doesn’t show signs of budging on the use of X-ray scanners, Europe will instead use machines that rely on radio frequency waves, which have not been linked to cancer.

Note: For key reports from reliable sources on government and corporate threats to privacy, click here.

Israel has refused to reassure President Barack Obama that it would warn him in advance of any pre-emptive strike on Iran's nuclear capabilities, raising fears that it may be planning a go-it-alone attack as early as next summer. The US leader was rebuffed last month when he demanded private guarantees that no strike would go ahead without White House notification, suggesting Israel no longer plans to "seek Washington's permission", sources said. The disclosure [was] made by insiders briefed on a top-secret meeting between America's most senior defence chief and Benjamin Netanyahu, Israel's hawkish prime minister. Leon Panetta, the US defence secretary, flew into Israel last month on what was ostensibly a routine trip. Mr Panetta conveyed an urgent message from Barack Obama. The president, Mr Panetta said, wanted an unshakable guarantee that Israel would not carry out a unilateral military strike against Iran's nuclear installations without first seeking Washington's clearance. The two Israelis were notably evasive in their response, according to sources both in Israel and the United States. Alarmed by Mr Netanyahu's noncommittal response, Mr Obama reportedly ordered the US intelligence services to step up monitoring of Israel to glean clues of its intentions. What those intentions might be remains distinctly murky. Over the past fortnight, Israel's press has given every impression that the country is on a war footing, with numerous claims that Mr Netanyahu and Mr Barak are lobbying the cabinet to support the military option.

Note: For veteran geopolitical analyst Michel Chossudovsky's view that the "intelligence" on Iran's nuclear program is being "cooked" to justify an upcoming war, click here. For an investigative report showing that the IAEA's November 8 report on the "Iranian nuclear threat" falsely claimed that a Russian advisor to Iran is a nuclear scientist, click here. On the preparations for this war by the US and UK, which go far beyond the usual contingency planning for future possibilities, click here.

Important Note: Explore our full index to revealing excerpts of key major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.