Showing posts with label corporate crime. Show all posts
Showing posts with label corporate crime. Show all posts

Monday, February 11, 2019

UPDATED: Where Is The Public Good In All Of This?


H/t Greg Perry

His fulminations about the need for a public inquiry notwithstanding, it should surprise no one that Conservative leader Andrew Scheer met with officials of SNC-Lavalin to discuss the criminal charges they were facing. But to simply accuse him of his obvious hypocrisy and dismiss the controversy of Justin Trudeau's alleged attempt to interfere with the pursuit of justice is surely to ignore the increasingly fetid odour emanating from his office.

Consider, for example, what Canada's top prosecutor has to say about political and corporate interference in prosecutorial decisions:
In Federal Court documents obtained by the Star, [Kathleen] Roussel responds to SNC-Lavalin, saying that it has no legal right or entitlement to any deal; that prosecutors are independent with broad discretion on how to proceed with charges; and that under the Constitution, prosecutors are free from political or judicial interference.

She says the law passed last year allowing for what is called “deferred prosecution agreements” (a new regime that was stuffed into an omnibus budget bill) [the very kind of bill the Liberals railed against while in opposition - funny how the perch of power changes one's perspective, eh?] is explicit about what factors prosecutors must not consider in corruption cases:

“The prosecutor must not consider the national economic interest, the potential effect on relations with a state other than Canada or the identity of the organization or individual involved” where an organization is charged under the Corruption of Foreign Public Officials Act, as in SNC-Lavalin’s case.

In other words, the the director of public prosecutions is arguing that, while the law sets out other criteria Roussel could consider when weighing the public interest, she’s not allowed by law to consider whether a company is too big to fail.
Implicit is that the administration of justice should be the guiding principle behind the pursuit of cases, neither corporate nor political considerations being part of the formula.
The written brief also takes a strong stand against any political interference in prosecutorial decisions, saying it “could erode the integrity of our system of prosecution.”
And it is integrity that should be our uppermost consideration. We have, in this country, the likely accurate perception that there are two kinds of justice: one for the powerful and entitled, and another for the rest of us. To willfully and cravenly defer prosecution on the basis of who the accused is would further erode public confidence in our institutions at a time when there are many forces, both within and without, committed to sowing division and disunity.

More cynicism is the last thing we need today. It is time for the Trudeau government to pull in its neoliberal horns, respect the independence of the federal prosecutor's office, and allow the corporate chips to fall where they may.

UPDATE: An interesting new development:
The federal ethics commissioner has launched an investigation into allegations that former justice minister Jody Wilson-Raybould was pressured by the prime minister’s office to seek mediation instead of pursuing criminal charges against Quebec construction giant, SNC-Lavalin.

Mario Dion, the conflict of interest and ethics commissioner, confirmed in a letter to two NDP MPs that he would probe allegations that became public last week.

In his letter, Dion says that based on the complaint by the two MPs, media reports and other information, he has “reason to believe” that a possible contravention of section 9 of the Conflict of Interest Act has occurred.

That section prohibits a public office holder from seeking to influence a decision of another person to improperly further another person’s private interests.

Tuesday, February 5, 2013

'Paying' For Their Crimes?

It doesn't take a cynic to realize that justice can be anything other than even-handed. We all know, for example, that there is a disproportionate percentage of people populating North American jails who are from the underclass, both white and non-white. The ability to 'buy' justice by engaging high-priced counsel is reserved for only a certain segment of our civilian population.

In his column today, The Star's Richard Gwyn turns his sights on a segment of our society, our corporate overlords, who have often been described as both 'too big to fail' and 'too big to jail.' Amongst those who fit that bill, predictably are the big banks:

- Just a month ago, Bank of America agreed to pay $11.6 billion (all figures U.S.) for making mortgage loans it knew its clients could never repay and for breaking the foreclosure rules so it could seize the houses of clients behind in their payments.

- That same month, Standard Chartered paid out $327 million after admitting it had broken American sanction laws against Iran, Burma, Sudan and Libya.

- By no means are the culprits only American institutions. Germany’s Deutsche Bank is trying to deal with charges that it hid $12 billion in paper losses to avoid a government bailout.

- The Swiss bank, Wegelin, small but with 272 years of history behind it, has just shut down after admitting it helped American customers escape taxes on $1.2 billion in assets.

- The truly humungous case is that of some 20 banks — American, British, German, Swiss, French — that for years have been fiddling a key international interest rate known as Libor to suit their corporate interests. The first to take the hit, Britain’s Barclays, has settled for $450 million. It all looks encouraging. The villains are being called to account.

True, many have had to pay substantial financial penalties for their crimes, but Gwyn places a couple of huge asterisks beside those 'penalties':

No one has done time for any of these misdeeds. No one has even had to endure the humiliation of a court appearance.

But it gets worse, as the very penalties these corporate malefactors pay are in fact heavily subsidized by the taxpayer:

Most of these grandiose settlements are a lot smaller than they seem because the institution can write off the costs as a business expense. The best, and worst, example is not a bank but British Petroleum, which earned a $10 billion tax windfall by writing off all its cleanup costs in the Gulf of Mexico.

Not in an entirely pessimistic frame of mind, Gwy points to a faint light in the distance:

At present, when banks pay penalties, a key part of their settlements is that they are not required to admit to any wrongdoing. A New York state attorney, Preet Bharara, though, now requires an admission of past guilt as part of any settlement. “We have a responsibility to speak the truth, to get at what actually happened,” he says.

Principle and integrity finding its way into the public arena? Only an inveterate cynic could question the prospect.