Government Corruption News Articles

Excerpts of key news articles on

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The Navy plans to increase ocean warfare exercises, conduct more sonar tests and expand coastal training areas by hundreds of square miles — activities that could harass, injure or disturb the habitats of hundreds of thousands of marine mammals, federal records show. The Navy is seeking federal permits to broaden an existing range off the Pacific Northwest and dramatically expand exercises and sonar use in the Gulf of Alaska. The Navy's plans have ignited a debate with environmental groups that say the service underestimates the long-term impact of its activities and fails to restrict training sufficiently in marine sanctuaries and other areas where it is likely to affect sensitive species. The plans to expand training off the Pacific Northwest, where the service's exercise areas reach into the Olympic Coast National Marine Sanctuary, have drawn about 3,500 public comments, most in opposition. Critics of the Navy's plans point to its use of new sonar systems that can disrupt marine mammals' brain function and behavior, noting that even brief disorientation or other "temporary" effects can have serious consequences, such as changes in reproductive activity. Among the most serious concerns is the potential for whales to strand themselves on beaches: Since 2000, there have been at least four instances in which mass strandings of whales have been associated with the Navy's sonar use, federal records show.

Note: For many reports on the wonderful abilities of and the terrible threats to marine mammals, click here.

It is just a technical matter, the Obama administration says: We just need to make a slight change in a law to make clear that we have the right to see the names of anyone’s e-mail correspondents and their Web browsing history without the messy complication of asking a judge for permission. It is far more than a technical change. The administration’s request, reported [on July 29] in The Washington Post, is an unnecessary and disappointing step backward toward more intrusive surveillance from a president who promised something very different during the 2008 campaign. To get this information, the F.B.I. simply has to ask for it in the form of a national security letter, which is an administrative request that does not require a judge’s signature. The F.B.I. used these letters hundreds of thousands of times to demand records of phone calls and other communications, and the Pentagon used them to get records from banks and consumer credit agencies. Internal investigations of both agencies found widespread misuse of the power, and little oversight into how it was wielded. President Obama campaigned for office on an explicit promise to rein in these abuses. But instead of implementing reasonable civil liberties protections, like taking requests for e-mail surveillance before a judge, the administration is proposing changes to the law that would allow huge numbers of new electronic communications to be examined with no judicial oversight.

Note: For key reports on the growing government and corporate threats to privacy, click here.

Six months after a devastating earthquake struck Haiti, most governments that promised money to help rebuild the country have not delivered any funds at all. Donors promised $5.3 billion at an aid conference in March, about two months after the earthquake -- but less than 2 percent of that money has been handed over so far to the United Nations-backed body set up to handle it. Only four countries have paid anything at all: Brazil, Norway, Estonia and Australia. The United States pledged $1.15 billion. It has paid nothing, with the money tied up in the congressional appropriations process. Venezuela promised even more -- $1.32 billion. It has also paid nothing, although it has written off some of Haiti's debt. Altogether, about $506 million has been disbursed to Haiti since the donors' conference in March, said Jehane Sedky of the U.N. Development Program. That's about 9 percent of the money that was pledged. But about $200 million was money that had been in the pipeline for aid work before the earthquake, and about another $200 million went directly to the government of Haiti to help it get back on its feet, Sedky explained. That has left the commission with about $90 million in donations since the conference, Sedky said.

Iraqi authorities are investigating a fire that destroyed sensitive documents during an apparent Al Qaeda in Iraq attack against the Central Bank of Iraq, amid suspicions that the fire may have been set to destroy evidence in a potentially huge corruption case, officials say. Investigators became suspicious ... after they discovered that the fire was not caused by [the attack] but rather appeared to have been started deliberately in a second-floor room that is used by the inspector general responsible for investigating corruption cases, said Sabah Saadi, who heads the Integrity Committee in Iraq's parliament, charged with monitoring corruption. According to Saadi, the fire destroyed documents stored in the room that pertained to a particularly sensitive case involving a series of fraudulent checks drawn against accounts held by different companies with state-owned banks. At least $711 million had been found to be missing in the scheme, and two bank managers had been detained as part of an investigation before the fire, he said. But Saadi suspects that the scam may have been much larger and could have involved many more people. The investigation into the fire raises tantalizing questions about the nature of the attack, the role of Al Qaeda in Iraq and the extent of corruption in the country.

Note: This highly visible attack by "terrorists" masking the destruction of evidence of government corruption parallels the attacks of 9/11, in which the destruction (likely by controlled demolition) of WTC 7 served to destroy massive evidence of government and corporate fraud in SEC cases under investigation.

The chief executive of Goldman Sachs Canada has been named a special adviser to the head of Canada's central bank. The Bank of Canada said [on June 29] that Timothy Hodgson will advise central bank head Mark Carney, a former Goldman Sachs executive, on financial reform. Carney says Hodgson is one of Canada's top investment bankers. Hodgson is leaving Goldman Sachs. The company has come under sharp criticism over civil fraud charges brought by the U.S. Securities and Exchange Commission and because of the high pay its executives and traders received during the financial crisis. Hodgson joined Goldman Sachs in 1990 and became CEO of its Canadian operations in 2005.

Note: So Canada's central bank head, a former Goldman Sachs exec, will now be advised by the chief executive of Goldman Sachs Canada. Hmmmmm.

My city feels like a crime scene and the criminals are all melting into the night, fleeing the scene. No, I’m not talking about the kids in black who smashed windows and burned cop cars on Saturday. I’m talking about the heads of state who, on Sunday night, smashed social safety nets and burned good jobs in the middle of a recession. Faced with the effects of a crisis created by the world’s wealthiest and most privileged strata, they decided to stick the poorest and most vulnerable people in their countries with the bill. How else can we interpret the G20’s final communiqué, which includes not even a measly tax on banks or financial transactions, yet instructs governments to slash their deficits in half by 2013. This is a huge and shocking cut, and we should be very clear who will pay the price: students who will see their public educations further deteriorate as their fees go up; pensioners who will lose hard-earned benefits; public-sector workers whose jobs will be eliminated. And the list goes on. These types of cuts have already begun in many G20 countries including Canada, and they are about to get a lot worse. But there is nothing to say that citizens of G20 countries need to take orders from this hand-picked club. Already, workers, pensioners and students have taken to the streets against austerity measures in Italy, Germany, France, Spain and Greece, often marching under the slogan: “We won’t pay for your crisis.” And they have plenty of suggestions for how to raise revenues to meet their respective budget shortfalls. Many are calling for a financial transaction tax that would slow down hot money and raise new money for social programs.

Note: This report from Toronto is by Naomi Klein, the author of The Shock Doctrine: The Rise of Disaster Capitalism. For powerful evidence that the violence at the recent G20 meeting was largely instigated by undercover police, click here.

The U.S Supreme Court has severely restricted the ability of federal prosecutors to bring corruption cases against public officials and corporate executives. The court unanimously imposed stark limits on the so-called honest services law that for decades has been a key tool in prosecuting corruption cases. The court's ruling came in the case of former Enron executive Jeffrey Skilling, convicted of engaging in a scheme to enrich himself by deceiving shareholders about his company's true financial condition. He was convicted of a variety of charges, including depriving the Enron investors of his honest services. The Supreme Court ruled that the definition of honest services in federal law was so broad that, if viewed literally, it would be unconstitutionally vague, providing inadequate notice to citizens about what conduct is legal and what is not. Instead, a six-justice majority led by Ruth Bader Ginsburg declined to invalidate the law outright, but read it narrowly to cover only bribery and kickbacks. Three other justices — Antonin Scalia, Anthony Kennedy and Clarence Thomas — would have, for all practical purposes, invalided the statute in its entirety.

Note: For lots more from major media sources on corporate and government (including the judicial branch) corruption, click here and here.

The base-line measures of the [Gulf of Mexico] crisis have steadily worsened. The estimated flow rate keeps rising. The well is like something deranged, stronger than anyone anticipated. Week by week, the truth of this disaster has drifted toward the stamping ground of the alarmists. The most disturbing of the worst-case scenarios ... is that the Deepwater Horizon well has been so badly damaged that it has spawned multiple leaks from the seafloor, making containment impossible and a long-term solution much more complicated. Much of the worst-case-scenario talk has centered on the flow rate of the well. Rep. Edward J. Markey [said on NBC's "Meet the Press], "I ... have a document that shows that BP actually believes it could go upwards of 100,000 barrels per day. So, again, right from the beginning, BP was either lying or grossly incompetent." Today the official government estimate of the flow, based on multiple techniques that include subsea video and satellite surveys of the oil sick on the surface, is 35,000 to 60,000 barrels a day. In effect, what BP considered the worst-case scenario in early May is in late June the bitter reality -- call it the new normal -- of the gulf blowout.

Note: A NASA photo of the extent of the gulf oil spill speaks a thousand words at this link.

Imagine a siege of hydrocarbons spewing from deep below ground, polluting water and air, sickening animals and threatening the health of unsuspecting Americans. And no one knows how long it will last. No, we’re not talking about BP’s gulf oil spill. We’re talking about hydraulic fracturing of natural gas deposits. Fracking, as the practice is also known, may be coming to a drinking well or a water system near you. It involves blasting water, sand and chemicals, many of them toxic, into underground rock to extract oil or gas. "Gasland," a compelling documentary on HBO ..., traces hydraulic fracturing across 34 states from California to Louisiana to Pennsylvania. The exposé by filmmaker Josh Fox, alternately chilling and darkly humorous, won the 2010 Sundance Film Festival’s special jury prize for documentary. It details how former Vice President Dick Cheney, in partnership with the energy industry and drilling companies such as his former employer, Halliburton Corp., successfully pressured Congress in 2005 to exempt fracking from the Safe Drinking Water Act, the Clean Air Act and other environmental laws. Each well requires the high-pressure injection of a cocktail of nearly 600 chemicals, including known carcinogens and neurotoxins, diluted in 1 million to 7 million gallons of water. Some 450,000 wells have been drilled nationwide.

Note: For many reliable reports on government and corporate corruption, click here and here.

Mafia bosses planned to "compromise" Bobby and Edward Kennedy at a New York party in a plot involving Frank Sinatra and Marilyn Monroe, according to FBI documents. The intention was to work through "associates" of the two stars to lure the Kennedys, as well as Peter Lawford, their British actor brother-in-law and fellow member of Sinatra's "rat pack", into actions they would regret. The plot is thought to have fizzled out, but it is consistent with other accounts of the extraordinary links between [the Kennedys], the country's biggest stars and organised crime. Monroe, who died in 1962, allegedly had affairs with both Bobby Kennedy and John F Kennedy. It has previously been claimed that she passed on pillow talk from Bobby Kennedy to Sinatra who in turn passed them on to his mafia friends. As attorney general Robert Kennedy launched several investigations into the mob which it may have felt warranted a measure of retribution. From early on in his four-decade career in the senate, Edward Kennedy, the youngest of the three brothers, was known for his affairs with women and extravagant drinking habits. Papers released earlier this year the library of former president Richard Nixon showed that in the early 1970s he discussed with the aides the possibility of discrediting Kennedy by leaking news of his infidelities. Agents in Milwaukee took the information from an unidentified source "who had furnished reliable information in the past," according to the memo. However, the informant could not verify the truth of any of the rumor's details.

A Sunday Times investigation has exposed Japan for bribing small nations with cash and prostitutes to gain their support for the mass slaughter of whales. The undercover investigation found officials from six countries were willing to consider selling their votes on the International Whaling Commission (IWC). The revelations come as Japan seeks to break the 24-year moratorium on commercial whaling. An IWC meeting that will decide the fate of thousands of whales, including endangered species, begins this month in Morocco. Japan denies buying the votes of IWC members. However, The Sunday Times filmed officials from pro-whaling governments admitting: - They voted with the whalers because of the large amounts of aid from Japan. One said he was not sure if his country had any whales in its territorial waters. Others are landlocked. – They receive cash payments in envelopes at IWC meetings from Japanese officials who pay their travel and hotel bills. - One disclosed that call girls were offered when fisheries ministers and civil servants visited Japan for meetings. Barry Gardiner, an MP and former Labour biodiversity minister, said the investigation revealed "disgraceful, shady practice", which is "effectively buying votes".

Note: For key articles from reliable sources on the amazing qualities and sad human abuse of marine mammals, click here.

Canada's public safety minister says the country is spending nearly $1 billion for security at the G-8 and G-20 summits next month. Public Safety Minister Vic Toews said Wednesday Canada has budgeted up to $930 million Canadian (US$872 million). Toews says hosting two summits back-to-back is unprecedented. Canada is hosting the G-20 -- the group of leading rich and developing nations -- economic summit on June 26-27 in Toronto. The G-8 -- the group of leading industrial nations -- is meeting in Huntsville, Ontario, the day before the G-20 summit. Toews says it is a necessary level of security but opposition parties decried the cost.

Note: When the world's leaders have to spend $1 billion to protect themselves, it is a good indicator that they no longer trust the people, and the people don't trust them.

More than a year and a half after Iceland's major banks failed, all but sinking the country's economy, police have begun rounding up a number of top bankers while other former executives and owners face a $US2 billion ($2.24 billion) lawsuit. Since Iceland's three largest banks - Kaupthing, Landsbanki and Glitnir - collapsed in late 2008, their former executives and owners have largely been living untroubled lives abroad. But the publication last month of a parliamentary inquiry into the island nation's profound financial and economic crisis signalled a turning of the tide, laying much of the blame for the downfall on the former bank heads who had taken "inappropriate loans from the banks" they worked for. Overnight, the administrators of Glitnir's liquidation announced they had filed a $US2 billion lawsuit in a New York court against former large shareholders and executives for alleged fraud. "I think this lawsuit is without precedence in Iceland," Steinunn Gudbjartsdottir, who chairs Glitnir's so-called winding-up board, told reporters in Reykjavik. The bank also said it was "taking action against its former auditors PricewaterhouseCoopers (PwC) for facilitating and helping to conceal the fraudulent transactions engineered by [its principal shareholder] and his associates, which ultimately led to the bank's collapse in October 2008."

Note: Yet American and British bankers who played a major role in the economic collapse are getting record pay. For an incisive article in Rolling Stone titled "Why Isn't Wall Street in Jail?" click here. For key reports on financial fraud from major media sources, click here.

You'd think that General Motors Co., having been rescued by U.S. taxpayers, would be more up-front with them. In an ad that has been blanketing the airwaves since last week, General Motors Chairman and chief executive Ed Whitacre boasts that "we have repaid our government loan, in full, with interest, five years ahead of the original schedule." In a press release, Whitacre said GM was able to repay the loans "because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse." Neither the ad nor the press release mentioned that GM repaid its government loan with other government money, or that U.S. taxpayers could lose money on the roughly $50 billion they still have invested in General Motors. In a letter to Treasury Secretary Timothy Geithner last week, Sen. Chuck Grassley, R-Iowa, said the repayment "appears to be nothing more than an elaborate TARP money shuffle."

Note: For lots more on the bailout shell game from reliable sources, click here.

Before Wikileaks, or even the Internet, there were just plain leaks. Two weeks ago, Wikileaks.org released a classified video showing a United States Apache helicopter killing 12 civilians in Baghdad. The reaction was so swift and powerful — an edited version has been viewed six million times on YouTube — that the episode provoked many questions about how such material is now released and digested. Put another way: if someone today had the Pentagon Papers, or the modern equivalent, would he still go to the press, as Daniel Ellsberg did nearly 40 years ago and wait for the documents to be analyzed and published? Or would that person simply post them online immediately? Mr. Ellsberg knows his answer. “I wouldn’t have waited that long,” he said in an interview last week. “I would have gotten a scanner and put them on the Internet.” Today, he says, there is something enticing about being independent — not at the whim of publishers or government attempts to control release. “The government wouldn’t have been tempted to enjoin it, if I had put it all out at once,” he said. “We got this duel going between newspapers and the government.”

Note: For many key reports from reliable sources on government secrecy, click here.

The women of Saeed Chmagh�s family wept, but the men did not as they watched a video of him being shot to death by a gunner on an American Apache attack helicopter. �I saw the truth,� Samir Chmagh, 19, son of the dead man, said Tuesday in his family�s living room in Baghdad. �They saw clearly that they were journalists and that they were holding cameras. It was painful when we saw this movie.� In July 2007 on the streets of Baghdad ... American troops gunned down men they identified as insurgents. The attack left 12 people dead, including Namir Noor-Eldeen, a 22-year-old Reuters photographer, and Mr. Chmagh, 40, a driver and assistant for the news agency. A video from the cockpit of an Apache helicopter was released on Monday by WikiLeaks.org, an online organization that said it had received the video from a whistle-blower in the military. The video has become an Internet sensation, with defenders saying the soldiers believed they were under threat and critics denouncing what they said were callous and bloodthirsty comments by the soldiers as they killed about a dozen people. �At last the truth has been revealed, and I�m satisfied God revealed the truth,� Noor Eldeen, the photographer�s father, said in Mosul. �If such an incident took place in America ... what would they do?�

Note: To view this disturbing video which shows how some soldiers consider this kind of killing to be a fun game, click here.

A federal appeals court ruled on [April 6] that regulators [have] limited power over Web traffic under current law. The decision will allow Internet service companies to block or slow specific sites and charge video sites like YouTube to deliver their content faster to users. The court decision was a setback to efforts by the Federal Communications Commission to require companies to give Web users equal access to all content. The F.C.C. will now have to reconsider its strategy for mandating “net neutrality,” the principle that all Internet content should be treated equally by network providers. One option would be to reclassify broadband service as a sort of basic utility subject to strict regulation, like telephone service. Telephone companies and broadband providers have already indicated that they would vigorously oppose such a move. “You can’t have innovation if all the big companies get the fast lane,” said Gigi B. Sohn, president of Public Knowledge, which advocates for consumer rights on digital issues. “Look at Google, eBay, Yahoo — none of those companies would have survived if 15 years ago we had a fast lane and a slow lane on the Internet.”

American psychiatrists need to break away from a "culture of influence" created by their financial dealings with the drug industry, the head of the National Institute of Mental Health said in a leading medical journal. Dr. Thomas Insel stops short of calling researchers corrupt or asking them to stop taking money from drug companies. But he highlights a "bias in prescribing practices" that favors brand names drugs over cheaper generics and non-drug treatments. And he says the situation must change with new standards for transparency and full disclosure of psychiatry's collaborations with industry. "We can show the rest of medicine how to clean up our act," Insel told The Associated Press. Current National Institutes of Health rules on financial disclosure are confusing, Insel said. They allow researchers seeking federal funds to make their own judgments about what constitutes a significant financial interest, which they must report to their academic or research institutions. The rules also exempt disclosures of anything below $10,000 annually or 5 percent equity interest in a company.

Note: For a top-notch overview of medical corruption, click here.

Across the United States, pharmaceutical companies have pleaded guilty to criminal charges or paid penalties in civil cases when the Justice Department finds that they deceptively marketed drugs for unapproved uses, putting millions of people at risk of chest infections, heart attacks, suicidal impulses or death. "Marketing departments of many drug companies don't respect any boundaries of professionalism or the law," says Jerry Avorn, a professor at Harvard Medical School. The widespread off-label promotion of drugs is yet another manifestation of a health-care system that has become dysfunctional. About 15 percent of all U.S. drug sales are for unapproved uses without adequate evidence the medicines work, according to a study by Randall Stafford, a medical professor at Stanford University. As large as the penalties are for drug companies caught breaking the off-label law, the fines are tiny compared with the firms' annual revenue. The $2.3 billion in fines and penalties Pfizer paid for marketing Bextra and three other drugs cited in the Sept. 2 plea agreement for off-label uses amount to just 14 percent of its $16.8 billion in revenue from selling those medicines from 2001 to 2008.

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

Six years after the intense fighting began in the Iraqi town of Fallujah between US forces and Sunni insurgents, there is a disturbingly large number of cases of birth defects in the town. Fallujah is less than 40 miles (65km) from Baghdad, but it can still be dangerous to get to. As a result, there has been no authoritative medical investigation, certainly by any Western team, into the allegations that the weapons used by the Americans are still causing serious problems. The Iraqi government line is that there are only one or two extra cases of birth defects per year in Fallujah, compared with the national average. But in the ... Fallujah General Hospital ... we found a paediatric specialist, Dr Samira al-Ani, who told us that she saw two or three new cases every day. Most of them, she said, exhibited cardiac problems. The specialist, like other medical staff at the hospital, seemed nervous about talking too openly about the problem. But it is impossible, as a visitor, not to be struck by the terrible number of cases of birth defects there. We heard many times that officials in Fallujah had warned women that they should not have children. We went to a clinic for the disabled, and were given details of dozens upon dozens of cases of children with serious birth defects.

Note: There is strong evidence that the US military was experimenting with dangerous weapons like white phosphorus in Fallujah. For more on this, 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.