Corruption

Credit Suisse raid jabs at private bank model

3 Apr 2017

The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.

Gordhan exit is dual blow for South African debt

31 Mar 2017

President Jacob Zuma has fired his respected Finance Minister Pravin Gordhan. Instead of action to rein in South Africa’s debt, it will probably now rise. The damage to the state’s credibility means the cost of servicing the debt pile will head in the same unsettling direction.

South Africa’s real problem: credibility downgrade

28 Mar 2017

President Jacob Zuma's abrupt recalling of his respected finance minister hit domestic assets. The latest spat could speed a downgrade of the state's sovereign debt, although much of that appears priced in. The greater damage would be to South Africa’s institutional solidity.

Banks could do more in money laundering battle

22 Mar 2017

ING faces probes over links to a years-old graft case in central Asia, while UK lenders face questions over illicit Russian funds. The common theme is the difficulty of compliance in a world of faceless shell companies. The key is for banks to lobby harder for transparency.

Hogg exit only half solves Bank of England problem

14 Mar 2017

The central bank’s deputy governor has resigned after a UK parliamentary committee criticised her for failing to disclose a conflict of interest. Better late than never. However, the BoE’s tardy response to the affair has exposed a tin ear that will require attention.

Park ouster frees up Seoul for the real fight

10 Mar 2017

A court decision to uphold the impeachment of South Korea's President Park Geun-hye clears the path to an election. It removes a giant distraction, giving the polarized nation a chance to find common ground on critical economic reforms and its considerable geopolitical problems.

Russian toy IPO lacks a political risk discount

8 Feb 2017

Detsky Mir has priced its sale of new shares close to Lenta’s 2014 debut. Fair enough: it has a dominant position. Still, the conviction of opposition leader Alexei Navalny in defiance of a European court ruling is a reminder that Russia plays to its own rules.

Romania can salvage positives from graft mess

6 Feb 2017

An attempted softening of laws against corruption sparked mass protests, a ministerial resignation and an eventual U-turn. Despite this, Romania has made progress on fighting graft. It now needs to put more effort into judicial protection – and ensure cases have credibility.

Market indifference to Samsung swipe unhealthy

11 Jan 2017

Heir Jay Y. Lee is now a suspect in a corruption scandal involving South Korea's president. Yet shares in flagship unit Samsung Electronics comfortably beat an up market. Hardened investors are too used to local company bosses running into trouble – and deftly getting out of it.

Brexit could derail UK’s anti-corruption push

6 Jan 2017

Britain's keenly awaited anti-graft strategy has been delayed. The UK had looked to be making headway in reducing the billions of pounds laundered through London. The risk is this gets lost in the rush to quit the EU - or even that UK shadiness is seen as worth clinging to.

Breakdown: Park impeachment leaves Korea in limbo

9 Dec 2016

The National Assembly ousted President Park Geun-hye amid a corruption scandal. Though politicians swiftly made the historic move, clouds will still linger over the Korean economy and markets. A court can shoot down the bill after a lengthy review. Overseas risks also abound.

Presidential scandal can spur reform at Korea Inc

24 Nov 2016

Popular fury over a corruption scandal in South Korea could give President Park Geun-hye’s successor a mandate for sweeping political and corporate changes. For investors, that could mean better governance at the likes of Samsung – and a revaluation of Seoul-listed shares.

Russia cracks down on economy minister at a cost

15 Nov 2016

Alexei Ulyukayev may or may not be guilty of accepting a $2 mln bribe. But the detaining of the economy minister means Russia loses one of its more rational government voices. It also raises the risk of reduced fiscal caution that the domestic economy can ill afford.

South African U-turn on Gordhan is Pyrrhic victory

31 Oct 2016

The rand has recovered after the national prosecutor dropped fraud charges against the finance minister. Relief that Pravin Gordhan will stay on to repair the stuttering economy may be short-lived. The case has revived concern about political interference in state institutions.

South Africa is making the worst of a bad job

11 Oct 2016

State prosecutors have told Finance Minister Pravin Gordhan to appear in court on fraud charges, just days after he is supposed to deliver a budget to ease fears about a credit-junking. Such antics needlessly exacerbate Pretoria’s economic problems – including a sliding rand.

Ukraine’s IMF bailout is a drop in the bucket

21 Sep 2016

The International Monetary Fund approved a $1 bln aid tranche after a year’s delay, waiving some criteria in the process. It’s a start. But the country has to overcome corruption and get back in business. An ongoing standoff with Russia makes that unusually tough.