Corruption

Brazil’s anti-graft drive may hamper fiscal reform

12 Apr 2018

The jailing of the country's most popular politician, Lula, and voter disgust at corruption among the powerful will give outsiders with clean reputations a chance to shine in October elections. That's welcome, but could mean needed spending cutbacks are less likely to happen.

Opacity makes U.S. sanctions on Russia more potent

11 Apr 2018

Rusal aluminium will be barred from London’s Metal Exchange, and the Russian group and parent En+ will be deleted from some stock indices. In theory, non-Americans should be able to deal with both. But fear of how rules will be enforced is compounding the pain of tough sanctions.

Hadas: Even Trump can’t make graft great again

11 Apr 2018

Resistance to corruption is evident in cases against ex-leaders of South Korea, Brazil and South Africa. Old royal privileges make no sense in modern economies. U.S. officials and the corporate elite have strayed, but rising middle classes will keep straightening out the crooked.

Latin America’s pro-market forces need young blood

22 Mar 2018

Pedro Pablo Kuczynski, a 79-year-old ex-banker, has resigned as Peru’s president amid graft allegations. His junior by two years, Brazil's Michel Temer, has failed to deliver key pension reforms to spur the region’s biggest economy. Latin populism needs more vigorous enemies.

Revamped ENRC should set its sights low

8 Mar 2018

The colourful Kazakh miner, renamed ERG after it delisted under a cloud in 2013, is testing a recovering commodities market. A fresh IPO sounds a non-starter, but selling a stake in one of its operations could fly. If so, it would help the group trim almost $6 bln of debt.

Trump Jr. corrodes India’s anti-corruption efforts

23 Feb 2018

The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.

Big bank scam reveals India fixed half a problem

22 Feb 2018

A new bankruptcy code tackles a class of large shareholders by transferring power from tycoons to creditors. Government ownership, however, remains troubling, evidenced by the metastasizing $1.8 bln Punjab scandal. New Delhi's interference is the other 50 pct to address now.

Latvia exposes euro zone’s money-laundering holes

20 Feb 2018

The U.S. has accused the country’s third-largest bank of busting North Korean sanctions. This triggered outflows and an ECB payment freeze. Euro members Malta and Cyprus have also faced criticism for poor oversight. The bloc needs to rethink the policing of its weakest links.

India’s bad borrowers are a big problem for Modi

16 Feb 2018

A billionaire jeweller linked to a $1.8 billion fraud at a Punjab bank kept asking for credit even after a nationwide bank bailout. He is now overseas, like disgraced liquor baron Vijay Mallya. The pair of bad-debt poster boys tarnish the prime minister’s anti-corruption fight.

Freed Samsung heir cannot escape reform spotlight

5 Feb 2018

A court suspended Jay Y. Lee’s prison sentence. With Lee’s family symbolising the state of corporate Korea, any perceived leniency will be controversial. But this does not look like a return to the bad old days of executive impunity. In any case, both sides can still appeal.

Vietnam’s Thatcherism could use an extra push

2 Feb 2018

PV Power is the latest successful privatisation for Asia's fastest growing economy. Despite a broad anti-graft campaign, stake sales are going gangbusters, as is the local stock market. That makes it easy to refrain from enacting deeper reforms, but they'd help sustain momentum.

Steinhoff reminds creditors they are not all equal

1 Feb 2018

The scandal-hit retailer is planning early repayment of a $1.3 bln South African bond in return for releasing funds to cash-strapped European brands. Other mainly international creditors will be asked for waivers. It’s an early indicator of the unofficial pecking order.

MbS gains either way from Saudi anti-graft endgame

29 Jan 2018

Prince Alwaleed is free after months of detention. If the billionaire and fellow freed royals have paid up to leave the Ritz-Carlton/jail, it will help Crown Prince Mohammed bin Salman repair his Kingdom’s finances. Even if he has paid nothing, the power play has served a purpose.

Breakdown: Why Steinhoff’s complexity may save it

24 Jan 2018

An accounting scandal has exposed the retailer’s warren-like structure. Creditors who are owed close to 11 billion euros face a fight for repayment. But the prospect of a messy restructuring may help keep Steinhoff afloat for now. Breakingviews offers a guide through the maze.

Hadas: Malthus, Condorcet and “shithole” economics

17 Jan 2018

The English curate was totally wrong about permanent poverty, but the legacy of his grim expectations still clouds judgments. His lesser-known French rival was a better guide. Condorcet would have expected the recent progress in countries the U.S. president seems to despise.

Steinhoff creditors face a shrinking pot

19 Dec 2017

The South African furniture retailer lost nearly a fifth of its market value after failing to clear up accounting issues. Its debt levels are increasing and insurers are withdrawing credit guarantees. The risk is that there’s less and less for creditors to fight over if it fails.

Chile reinforces Latin American pro-business pivot

18 Dec 2017

Billionaire Sebastian Piñera won the copper-rich nation's presidential election with a stronger showing than expected. That will lend succor to like-minded leaders in Argentina, Brazil and Peru for whom fiscal discipline is proving a long slog and graft allegations a danger.

Latam’s turn from populism will be put to the test

15 Dec 2017

Demagogues of right and left will test the region's recent embrace of pro-business pragmatism in 2018. Presidential elections in Mexico and Brazil will feature firebrands keen to exploit voter anger at corrupt elites and lawlessness. The center, if it holds, will emerge stronger.

Steinhoff takes minimum first step in cleanup

15 Dec 2017

The departure of Chairman Christo Wiese was a prerequisite to shoring up trust in the embattled retailer. Surviving its accounting scandal presents more imminent challenges, though. Lenders must next week be persuaded to provide more money and jittery suppliers kept on side.

U.S. hands HSBC CEO perfect going-away gift

11 Dec 2017

The end of a five-year agreement over money-laundering lapses removes the threat of authorities yanking the bank’s U.S. licence. HSBC devoted 8 pct of its operating expenses to compliance last year. Though those costs will stay, departing boss Stuart Gulliver can leave on a high.