Slush Funds

According to David McClintick ("Swordfish: A True Story of Ambition, brutality, and betrayal"), in the late 1980s, the appointment of the Federal Bureau of Investigation and the Drug Enforcement Administration to establish fake companies to face the drug. They swarm in these fronts foreclosures money for drug-related companies.
The idea was to infiltrate global crime networks but a lot of money in the "Swordfish process" probably ended up in the wrong pockets. Government agents and mayors in mysterious circumstances rich business was liquidated and sad and dirty. GAO reported more than $ 3.6 billion in missing. This has resulted in a bit of history in at least one with a turnout of Oscar winner Halle Berry.

Unfortunately, funds are much less glamorous clay in reality. They usually involve dirty politicians, bankers and businessmen and shrewd Palestinians - rather than glamorous hackers and secret agents James Bondean.

Prime Minister of Kazakhstan, Imanghaliy Tasmaghambetov freely admitted on April 4, 2002, in support of his country's parliament and a fund of $ 1 billion slush. Been skimmed money from the proceeds of the Tengiz field vague. Handing it over to Kazakhstan - protested with a straight face - boosted inflation. Thus, remain the country's president, Nazarbaev, and funds abroad "for use in cases where a crisis or threat to security in Kazakhstan."

Money was used to pay pension arrears in 1997 and offset the negative effects of the devaluation of the ruble in 1998 Russian. The Prime Minister emphasized the remaining quoted by the National Fund assets $ 1.5 billion. Unfortunately, the original money in the Fund is due entirely to the last asset sale to Chevron Oil Company, and thus casting doubt on the official version.

And the National Fund in fact, by the transfer of one or two of slush fund - but at least one of these transfers occurred only 11 days after the revelations compelling. In addition, despite overwhelming evidence to the contrary, the prime minister denied that he had unperturbed his chair several bank accounts of millions of dollars abroad.

Later, where he abolished the last piece of disinformation. President, said: has no bank accounts abroad but will return immediately all the money in these accounts do not exist in Kazakhstan. These vehemently denied accounts, he speculated, was founded by opponents of the president "for the purpose of compromising his name".

April 15, 2002, until he was docile opposition enough of this fuzzy logic. Fund was created to monitor the oil people, now planning the financial system. Accounts for less than 7 percent of the proceeds from the sale of oil and gas ($ 4-5 billion annually), and payment of the national budget.

Slush funds infect every corner of the world, not just the more obscure and venal. All intelligence - Mossad and the CIA - operates outside the state budget stated. Black boxes are used for money laundering buddies shower, care, and bribe decision-makers. In some countries, and implementation is a criminal offense, according to the 1990 Convention on Laundering, Search, Seizure confiscation of the proceeds of crime. Other countries are more lenient.

Conference of Catholic Bishops issued in Papua New Guinea and the Solomon Islands, a press statement in November 2001 in which it welcomed the government's plans to abolish slush funds. They described the toxic effects of this practice:

"With some notable exceptions, has traditionally been channeling funds through politicians to projects area disastrous. He created an atmosphere of corruption which is supposed to have flourished. Fell responsibility of public servants, without reducing their numbers or costs. Has been used to confuse people into believing public funds are the "property" of individuals and not the property of the people, and honestly managed to some extent by the servants of the people.

Resulted in the concept of "slush funds" in the well-documented shortcomings and failures. There were accusations of money even held by some members as a means to force them to submit. Seems that the era of "black boxes" was a shameful period. '

But even most of the funds are managed orderly and legal are likely to be lost. "The Economist" reported recently about $ 10 billion class action suit against the Indians against the U.S. government. Money supposed to be managed in trust since 1880 on behalf of half a million beneficiaries, and "lost or stolen", according to officials.

Rob Gordon, director of the National Institute of wild accused "Interior Ministry U.S. (of) looting of private funds that have been established to pay for wildlife conservation and squandering money instead on administrative expenses dubious, and clay funds employee expenses moving."

Charles Griffin, deputy project manager of the Heritage Foundation, and safety of the charges, and the government:

"The federal budget provides numerous slush funds that can be used to support political lobbyists and special interest groups."

On the list of "Top Ten programs that actively support federal policy and lobbying" are: AmeriCorps community service program large employment, legal services, company address family planning X, the National Endowment for the Humanities, a program promoting the market, a large environment recruitment program, excellent training of workers, HHS luxury projects aging, organize contacts, and information. Infrastructure development assistance. These federal funds alone total $ 1.8 billion.

"Next" and "China Times" - joined later by "The Washington Post" - accused Former Taiwan president Lee Teng-hui, to create a fund worth $ 100 million fund clay abroad to collect information, influence peddling, and propaganda operations. Taiwan Travel introduced bills through the aid of the Congress and funded academic research and think tank conferences.

Japanese officials, among other things, had received secret payments through this website. He accused me of shooting $ 100,000 on a secret account in February 1999. Money was used to pay for the education of former Deputy Secretary of Defense Minister Masahiro Akiyama Japanese at Harvard University.

The involvement of Ryutaro Hashimoto, former Prime Minister of Japan, and one of the beneficiaries of the fund. The pressure was prestigious company, Cassidy & Associates and Assistant Secretaries variety of the Bush administration.

Worked Carl Ford, Jr., Assistant Secretary of State Intelligence and Research, Cassidy during the relevant period and often visited Taiwan. Estimated James Kelly, assistant secretary of state for East Asia and the Pacific and Taiwan's generosity. Both are responsible for formulating the policy of the United States in Taiwan.

John Bolton, Undersecretary of the Ministry of Foreign Affairs for arms control and international security Previously, admitted during his hearing, received $ 30,000 to cover the costs of writing research 3.

Taiwanese government did not deny the news stories.

Uses an official in the Ministry of Foreign Affairs of Japan money slush fund to finance activities outside the scope of marriage itself and a number of his colleagues - often in the luxury suites. But this was no exception. According to the Asahi Shimbun newspaper, kept more than half of people 60 from the Ministry of similar funds. Police and prosecutors and study. The arrest of the accused. Accounting Division discovered by the Ministry of these corrupt practices twenty years ago, but remained silent.

Even low-level provincial bureaucrats and teachers in Japan build slush funds falsifying business trips or packing invoices and receipts. Japanese citizens' groups conservatively estimated that fake $ 20 million in travel and entertainment in the provinces in 1994, a practice known as "shutcho Kara" (ie, empty business trip).

Council officials admitted Hokkaido education and a fund 100,000,000 ¥ confidential. Achieve a result, found 200 out of 286 schools to keep their own money clay. And used part of the money to support politicians favorable.

But money is not clay sovereign right. Multinational companies, banks and companies, religious organizations, political parties and non-governmental organizations and even some salt from the revenues and profits in undeclared accounts, usually in off-shore tax havens.

Secrets campaign funds are a fixture in the black American politics. Ticket 5 years requires disclosure of donors to these funds, but House now easing its provisions. "The Economist" in 2002, and a tsunami of scandals surrounding Germany, both major political parties, many of the rarest and many senior bureaucrats and medium enterprises. Secret, and party funds mainly, it appears that participation in most of these sordid affairs.

Italian companies provided donations to political parties through slush funds, though corporate donations - provided they are not transparent - are perfectly legal in Italy. And said the law, and to a lesser extent, the left in France, succeeded huge slush funds political.

President Chirac was accused after being abused for personal pleasure, such as municipal fund in Paris, where he was mayor. But not mostly used to provide party activists with money and fake jobs. Companies pay bribes to obtain public works or local building permit. In appearance, and pay for "consulting services" trumpet-l'oeil.

And B did not skipped even staid Ottawa. A senior official in one election and the media in September 2001 was "concerned" about the millions hidden away liberal candidates. Various ministers who coveted jobs Prime Minister raise funds in secret and probably illegal.

11 أبريل 2002 UPI reported that Spain's second largest bank Banco Bilbao Vizcaya Argentaria (BBVA), held nearly 200 million hidden in secret accounts abroad ", which have been used to manipulate politicians, pay a" tax revolt "of ETA - Basque terrorist - and open door for bargains, according to the media. "

Money has gone to luminaries such as Hugo Chavez in Venezuela, Peru, Alberto Fujomori and Vladimiro Montesinos. Bank board received fat, tax-free, "pensions" illegal accounts opened in 1987 - a total of more than $ 20 million.

've Worked through these funds and secret bank entities in the Cayman Islands and Jersey - Latin America drug money launderers - Puerto Rico to Colombia. The Spanish current Secretary of State for Treasury tax advisor between 1992-7 Bank.

And "Financial Times" reported in June 2000 .. After that further international action against corruption ", the leader in Europe in the weapons industry" using clay establishment of funds abroad. The money is intended to bribe foreign officials to win tenders and contracts.

Kim Woo Choong, former Daewoo, is at the center of a huge scandal involving tens of management of the company, and some of them ended up in jail. He is accused of converting huge clay Fund $ 20 billion abroad.

And believes that the $ 10 billion amazing to have been used to bribe officials and politicians Korean. But in his behavior and even the extent of the fraud committed perhaps typical of the relationship Korea after the war of incest between politics and business.

In his article entitled "The role of clay in the preparation of the mechanisms of corruption", driven by Transparency International (TI), Colombo knows Gerardo corporate slush funds as follows:

"The funds are from a company Blackberry financial and carefully managed so that the sums involved are not on the balance sheet. Need not consist of money, but it can also take the form of securities or other precious commodities economically (artwork, jewelry, yachts, etc.) It is enough to be used without difficulty or they can not be transferred to a third party.

If the fund is in the form of money, and it is not necessary to refer to the company's external auditor, as they can appear in the form of convincing (and "entitlements" for and often resorted to the heads to hide black money). In this context, it is not always a good idea to consider it as a reserve fund that has not been recorded in the books. And often resort to deception, deceit or fraud of various kinds for the purpose of creating a slush fund. "

The fake invoices, contracts upholstered fake loans, accrued interest on deposit accounts, back-to-back transactions with related entities (Enron) - used to direct all funds to mud. Often these funds are set to cover for illicit enrichment and illegal and embezzlement of public funds, or tax evasion.

Less well known is the role of these compounds cunning in financing unfair competitive practices, such as dumping. Customers, suppliers and partners to take advantage of discounts and hidden subsidies that far exceed - the actual cost of production - not reported.

Perhaps BBVA's payments ETA typical fee of protection. Put both terrorists and organized crime slush funds misuse. They are paid from these funds - and maintain their own country. Pay a ransom to the kidnappers flow often through these channels.

But the money is used mainly clay to bribe the corrupt politicians. The title fight against corruption against the beneficiaries of the illegal acts of generosity. But to be successful, goodwill international organizations such as the Organization for Economic Cooperation and Development FATF, must attack with equal enthusiasm of those wines. All fraudulent transactions is a political and a corrupt businessman scarce. Doomed pursuit of one while ignoring the other for the failure.