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Showing posts with label scandal. Show all posts
Showing posts with label scandal. Show all posts

Tuesday, February 22, 2011

Fraud Scandal Hits China's Online Giant Alibaba (Time.com)

A fraud scandal at Chinese e-commerce giant Alibaba.com is a sharp blow to a business built on faith in online transactions. On Monday the business-to-business site's CEO David Wei and COO Elvis Lee resigned, according to a statement filed with the Hong Kong stock exchange. While the two executives were not linked to the fraud allegations, they stepped down to "take responsibility for the systemic break-down in our company's culture of integrity," according to the statement. On Tuesday, the company's shares dropped 8.6% in Hong Kong.

An internal investigation by independent board member Savio Kwan revealed that Alibaba.com noticed an increase in fraud claims beginning in late 2009 against sellers designated as "gold suppliers," which means they had been vetted by an independent party as legitimate merchants. The investigation revealed that about 100 Alibaba.com sales people, out of a staff of 5,000, were responsible for letting fraudulent entities evade regular verification measures and establish online storefronts.

The company said that it uncovered fraudulent transactions by 1,219 of the "gold suppliers" registered in 2009 and 1,107 of those in 2010, accounting for about 1% of the total number of those years' gold suppliers. Alibaba said "the vast majority of these storefronts were set up to intentionally defraud global buyers," by advertising consumer electronics at cheap prices with low minimum order requirements. The average claim against fraudulent suppliers was less than $1,200.

On Monday Alibaba founder Jack Ma emphasized the importance of integrity of both the company's staff and its online marketplaces. "We must send a strong message that it is unacceptable to compromise our culture and values," he said, according to the company statement. A former English teacher, Ma expanded Alibaba into a global leader in online commerce. He is one of China's most admired technology entrepreneurs, and in 2009 was named to the TIME 100. He now heads Alibaba Group, which includes Alibaba.com, consumer retail site Taobao.com and Alipay, a Chinese online payment system like PayPal. Alibaba.com is partly owned by Yahoo, though Ma has tried unsuccessfully to buy out that stake. Jonathan Lu, the CEO of Taobao, was named as the new head of Alibaba.com, a job he will hold concurrently with his position at Taobao. (See the 2009 TIME 100.)

In November 2010 Alibaba reported that it had more than 56 million members and had earned more than $570 million over the first three quarters of the year, a 30% increase over 2009. Alibaba said that the frauds had "not had a material financial impact" on the company. But the damage to the company's reputation may have a more lasting significance.

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Saturday, February 19, 2011

Peruvian from US spy scandal back home (AP)

LIMA, Peru – A Peruvian journalist deported by the United States to Russia in a spy swap returned home and said she was in Peru to attend her father's burial.

Vicky Pelaez told reporters at Lima's airport on Friday night that she would not speak publicly until after her father's burial in the highlands city of Cuzco on Saturday.

Pelaez was not accompanied by husband Mikhail Vasenkov, whom she met in Peru in the 1980s when he was living as Juan Lazaro. The couple was arrested last June by U.S. authorities along with eight other people accused of being Russian spies.

Peruvian prosecutor have said the 55-year-old Pelaez apparently altered her birth and marriage records and said that if she returned to Peru she could be detained.

The Associated Press was not immediately able to reach authorities for comment on Pelaez's legal status.

Pelaez was a longtime columnist for the newspaper El Diario La Prensa in New York known as a fervent defender of Cuba's Fidel Castro when she was arrested.

All 10 of the accused Russian spies were sent to Russia in July in exchange for the release by Moscow of four people convicted of spying for the West.

Both Pelaez and Vasenkov, 65, pleaded guilty in the United States to conspiring to act as an unregistered agent of a foreign country.

The two disappeared from public view and Pelaez's return to Peru on Friday brought her back into the limelight.

Peru's foreign minister had warned after the two were deported by the U.S. that Vasenkov could be charged with lying on his Peruvian citizenship application if he were to return to Peru.

Lawyers for the couple had said at the time that the pair planned to return to Peru.


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Thursday, February 17, 2011

Will a Corruption Scandal Slow Down China's High Speed Trains? (Time.com)

The Feb. 12 announcement of the dismissal of China's railway minister has been an embarrassment for a transport system that has been a symbol of the country's rapid growth. Liu Zhijun was sacked over the weekend for "severe violation of discipline," according to the state-run Xinhua news service, and is under investigation by the Communist Party for suspected corruption in rail building contracts.

Liu, who was appointed to the position in 2003, helped lead the country's development of its internationally lauded high-speed rail. Since the opening of its first high-speed line in 2003, China has built 8,358 km of high-speed tracks that can carry trains at over 200 km/h. One month before his dismissal Liu said that China would reach 16,000 km of high-speed rail by 2015. During his state of the union address in January, U.S. President Obama cited China's fast trains in announcing his goal to give 80% of Americans access to their own high-speed rail system within 25 years.

Chinese companies have begun competing for rail projects abroad, and last year the state-owned China Railway Construction Corporation completed a metro line in the Saudi holy city of Mecca. The project was a technical success, but the pressure Beijing exerted on its company to complete the project resulted in a $600 million loss for the firm. China is also in talks to build a rail line through Colombia that would serve as an alternative to the Panama Canal, the Financial Times reported Feb. 13. /Users/kmahr1271/Desktop/LINK GUIDELINES_NEW_JUNE.txt:888: (See pictures of China's high speed rail.)

At home, China's rail building binge has been met with both satisfaction at the improvements in speed and quality and doubts about whether the massive investment is necessary for a developing nation. The expensive high-speed tickets did little to ensure smooth travel during this year's Spring Festival travel period, when some 200 million migrant workers travel home from China's cities to celebrate the holiday. This year saw the season's usual explosion of complaints from people who were unable to get a cheap train ticket, with travelers again forced to buy from scalpers or end up with tickets that only permit them to stand for long distances. Others had to buy the pricier high-speed rail tickets or even fly, an expensive prospect for average workers. (See pictures of China's great spring migration.)

The ticketing system, which sets aside seats for government officials, has created ample opportunities for graft, especially during periods of high demand. So has the massive size of the railway ministry, which employs 2.5 million staff, and the size of its expansion plans. In 2009 spending on railroad construction climbed more than 80% to reach $88 billion, and it is expected to surpass $700 billion this decade. "Whenever you have a very large project with a lot of money invested, and in the Chinese railway sector investment has exploded with huge amounts of money funneled in without significant supervision sometimes, it's hard to imagine there wouldn't be rigged bids," says Dali Yang, a political science professor at the University of Chicago.

Liu has yet to be charged with a specific crime while he is under investigation by the Communist Party's disciplinary body. He is the highest level official to be dismissed for corruption since disgraced Shanghai party boss Chen Liangyu was removed from office in 2006. Chen was sentenced to 18 years in prison in 2008. As with Chen, Liu's prosecution would have been approved by high level officials. Allegations of Liu's corruption have circulated online for months. His younger brother, a railway official in Wuhan, was given a suspended death sentence in 2006 for taking more than $3 million in bribes and hiring assassins to kill a man who ran a lodging house. So far the elder Liu hasn't been linked to such violence. In an article published this week and since removed from its website, the groundbreaking Chinese business publication Caixin reported that he was connected with Ding Shumiao, a Shanxi businesswoman whose empire includes railway construction and coal hauling. She is also under investigation, the magazine reported.

Rail officials have responded quickly to the Chinese public's concerns that the alleged corruption may have affected the quality of the newly built lines. In a Feb. 13 teleconference with rail ministry employees, Liu's replacement, General Administration of Customs chief Sheng Guangzu, stressed the need to ensure safety, eliminate corruption in railway construction and pursue the government's rail development goals, the rail ministry reported on its website. Given that development targets have already been approved, it's unlikely that Liu's dismissal will immediately slow down China's high-speed push. But that may change after China begins a leadership transition next year, says Yang. "As the new leadership takes on this issue, it may be thinking of how to justify this spending," Yang says. "When that reckoning comes, it may affect further investment."

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Monday, February 14, 2011

Italian women protest over Berlusconi sex scandal (Reuters)

ROME (Reuters) – Hundreds of thousands of women rallied in Rome and other cities on Sunday, incensed by Prime Minister Silvio Berlusconi's sex scandal which they say has disgraced Italy.

"Women are offended. The image of our country that Berlusconi is presenting to the world is just unbearable," said 52-year-old Roberta Nicchiarelli, attending a rally in Rome.

The protests in more than 200 towns in Italy and even some cities abroad reflect growing anger among women at the prostitution scandal that has engulfed the premier, who has long counted conservative women among his key voters.

"I voted for him in the past, but I am really disappointed. I hope things will change," said former Berlusconi voter Pina.

Prosecutors filed a request on Wednesday to bring Berlusconi to trial, accusing him of paying for sex with a nightclub dancer when she was under 18, which is illegal in Italy.

The 74-year old premier has dismissed the accusations as "disgusting and disgraceful."

Leaked wiretaps from the investigation have been splashed over newspapers for weeks with references to bundles of cash, talk of sex games and gifts that would-be starlets received after attending parties at Berlusconi's villa.

"I love my boyfriend for free," read one banner in Rome, where crowds of women of all ages packed into a central square flanked by husbands, brothers and male friends.

"It's a scandal. I do not believe in his values, his behavior and the way he treats women. Italy doesn't have a future if these are the values that sustain us," said Paolo Campedel, a worker attending a rally in Padua in northern Italy.

ONE-SIDED

Photos and videos of a growing list of young women from the fringes of show business alleged to be connected to Berlusconi have been plastered over Italian television and media web sites, often showing them in erotic poses or in their underwear.

Campaigners say the increasingly one-sided image of women as sex objects has promoted a culture in which women see selling their good looks as the only route to success in a country where a third of young people are unemployed.

"Big boobs, small hips, and always available: it's almost become a dictatorship because television, the newspapers, only present this model of women," said Lorella Zanardo, author of Il Corpo Delle Donne, a book about the image of women in the media.

The scandal in mainly Catholic Italy has revived opposition calls for Berlusconi to resign at a time when he is clinging to power after a split in the ruling PDL party last year.

But he has survived sex scandals in the past and some of his most staunch supporters attended pro-Berlusconi rallies earlier in the week, while branding Sunday's demonstration a puritanical and politically motivated ploy.

The women's protest follows several anti-Berlusconi rallies this week. President Giorgio Napolitano has warned political tensions are too high and told Berlusconi at a meeting on Friday that Italy risked facing new elections as a result.

(Additional reporting by Philip Pullella, Giselda Vagnoni, Cristiano Corvino in Rome, and Martin de Sa' Pinto in Padua Editing by Maria Golovnina)


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Sunday, February 13, 2011

Italian women protest over Berlusconi sex scandal (Reuters)

ROME (Reuters) – Hundreds of thousands of women rallied in Rome and other cities on Sunday, incensed by Prime Minister Silvio Berlusconi's sex scandal which they say has disgraced Italy.
"Women are offended. The image of our country that Berlusconi is presenting to the world is just unbearable," said 52-year-old Roberta Nicchiarelli, attending a rally in Rome.
The protests in more than 200 towns in Italy and even some cities abroad reflect growing anger among women at the prostitution scandal that has engulfed the premier, who has long counted conservative women among his key voters.
"I voted for him in the past, but I am really disappointed. I hope things will change," said former Berlusconi voter Pina.
Prosecutors filed a request on Wednesday to bring Berlusconi to trial, accusing him of paying for sex with a nightclub dancer when she was under 18, which is illegal in Italy.
The 74-year old premier has dismissed the accusations as "disgusting and disgraceful."
Leaked wiretaps from the investigation have been splashed over newspapers for weeks with references to bundles of cash, talk of sex games and gifts that would-be starlets received after attending parties at Berlusconi's villa.
"I love my boyfriend for free," read one banner in Rome, where crowds of women of all ages packed into a central square flanked by husbands, brothers and male friends.
"It's a scandal. I do not believe in his values, his behavior and the way he treats women. Italy doesn't have a future if these are the values that sustain us," said Paolo Campedel, a worker attending a rally in Padua in northern Italy.
ONE-SIDED
Photos and videos of a growing list of young women from the fringes of show business alleged to be connected to Berlusconi have been plastered over Italian television and media web sites, often showing them in erotic poses or in their underwear.
Campaigners say the increasingly one-sided image of women as sex objects has promoted a culture in which women see selling their good looks as the only route to success in a country where a third of young people are unemployed.
"Big boobs, small hips, and always available: it's almost become a dictatorship because television, the newspapers, only present this model of women," said Lorella Zanardo, author of Il Corpo Delle Donne, a book about the image of women in the media.
The scandal in mainly Catholic Italy has revived opposition calls for Berlusconi to resign at a time when he is clinging to power after a split in the ruling PDL party last year.
But he has survived sex scandals in the past and some of his most staunch supporters attended pro-Berlusconi rallies earlier in the week, while branding Sunday's demonstration a puritanical and politically motivated ploy.
The women's protest follows several anti-Berlusconi rallies this week. President Giorgio Napolitano has warned political tensions are too high and told Berlusconi at a meeting on Friday that Italy risked facing new elections as a result.
(Additional reporting by Philip Pullella, Giselda Vagnoni, Cristiano Corvino in Rome, and Martin de Sa' Pinto in Padua Editing by Maria Golovnina)
View the original article here

Italian women protest over Berlusconi sex scandal (Reuters)

ROME (Reuters) – Hundreds of thousands of women rallied in Rome and other cities on Sunday, incensed by Prime Minister Silvio Berlusconi's sex scandal which they say has disgraced Italy.

"Women are offended. The image of our country that Berlusconi is presenting to the world is just unbearable," said 52-year-old Roberta Nicchiarelli, attending a rally in Rome.

The protests in more than 200 towns in Italy and even some cities abroad reflect growing anger among women at the prostitution scandal that has engulfed the premier, who has long counted conservative women among his key voters.

"I voted for him in the past, but I am really disappointed. I hope things will change," said former Berlusconi voter Pina.

Prosecutors filed a request on Wednesday to bring Berlusconi to trial, accusing him of paying for sex with a nightclub dancer when she was under 18, which is illegal in Italy.

The 74-year old premier has dismissed the accusations as "disgusting and disgraceful."

Leaked wiretaps from the investigation have been splashed over newspapers for weeks with references to bundles of cash, talk of sex games and gifts that would-be starlets received after attending parties at Berlusconi's villa.

"I love my boyfriend for free," read one banner in Rome, where crowds of women of all ages packed into a central square flanked by husbands, brothers and male friends.

"It's a scandal. I do not believe in his values, his behavior and the way he treats women. Italy doesn't have a future if these are the values that sustain us," said Paolo Campedel, a worker attending a rally in Padua in northern Italy.

ONE-SIDED

Photos and videos of a growing list of young women from the fringes of show business alleged to be connected to Berlusconi have been plastered over Italian television and media web sites, often showing them in erotic poses or in their underwear.

Campaigners say the increasingly one-sided image of women as sex objects has promoted a culture in which women see selling their good looks as the only route to success in a country where a third of young people are unemployed.

"Big boobs, small hips, and always available: it's almost become a dictatorship because television, the newspapers, only present this model of women," said Lorella Zanardo, author of Il Corpo Delle Donne, a book about the image of women in the media.

The scandal in mainly Catholic Italy has revived opposition calls for Berlusconi to resign at a time when he is clinging to power after a split in the ruling PDL party last year.

But he has survived sex scandals in the past and some of his most staunch supporters attended pro-Berlusconi rallies earlier in the week, while branding Sunday's demonstration a puritanical and politically motivated ploy.

The women's protest follows several anti-Berlusconi rallies this week. President Giorgio Napolitano has warned political tensions are too high and told Berlusconi at a meeting on Friday that Italy risked facing new elections as a result.

(Additional reporting by Philip Pullella, Giselda Vagnoni, Cristiano Corvino in Rome, and Martin de Sa' Pinto in Padua Editing by Maria Golovnina)


View the original article here

Saturday, February 12, 2011

Philadelphia church official charged in scandal (AP)

PHILADELPHIA – Nearly a decade after the scandal over sexual abuse by priests erupted, Philadelphia's district attorney has taken a step no prosecutor in the U.S. had taken before: filing criminal charges against a high-ranking Roman Catholic official for allegedly failing to protect children.

"I love my church," said District Attorney Seth Williams, himself a Catholic, "but I detest the criminal behavior of priests who abuse or allow the abuse of children."

Williams announced charges Thursday against three priests, a parochial school teacher and Monsignor William Lynn, who as secretary of the clergy was one of the top officials in the Philadelphia Archdiocese from 1992 to 2004.

The three priests and the teacher were charged with raping boys. Lynn, 60, was accused not of molesting children but of endangering them. A damning grand jury report said at least two boys were sexually assaulted because he put two known pedophiles in posts where they had contact with youngsters.

"The rapist priests we accuse were well-known to the secretary of clergy, but he cloaked their conduct and put them in place to do it again," the report said.

The grand jury report went further and suggested that the archbishop at the time, Cardinal Anthony Bevilacqua, who retired in 2003, may have known what was going on. But no charges were brought against him. The report said that there is no direct evidence against the cardinal and that his lawyer testified that the 87-year-old Bevilacqua is suffering from dementia and cancer.

"On balance, we cannot conclude that a successful prosecution can be brought against the cardinal — at least for the moment," the grand jury said.

Lynn could get up to 14 years in prison if convicted. His attorney, Tom Bergstrom, said: "We certainly don't concede for a moment that he knew he was putting children at risk."

Mark Crawford, New Jersey state director of the Survivors Network of those Abused by Priests, joined a few other activists for a rally Friday outside the archdiocese headquarters to welcome the charges.

"It's really incredible it's taken this long to say, 'Enough is enough,'" he said.

Five years ago, Williams' predecessor as district attorney issued a scathing report accusing the church of protecting child-molesting priests. But no charges were brought against the church, a huge and powerful entity in the Philadelphia region, where about one-third of the population is Catholic. With 1.5 million Catholics, the archdiocese is one of the biggest in the country.

The Rev. Thomas Doyle, a canon lawyer and one-time church insider who has become an advocate for victims of clergy abuse, said the charges against the monsignor reflect the shrinking power and influence of the Catholic Church since the crisis erupted in Boston in 2002.

"Up until now, there have been threats and the possibility of indictment, but for political reasons, people did not want to move in on the Catholic Church. It's never happened," Doyle said. "I really think this is a major breakthrough and I really hope that it is a signal and a sign of encouragement for district attorneys and federal prosecutors around the country."

Lynne Abraham, Williams' predecessor as district attorney, said the reason there haven't been charges before isn't political. She said victims are afraid to come forward when the wrongdoers are in positions of authority. And by the time the scandal unfolded, the statute of limitations had expired in the cases she investigated, she said.

Cardinal Justin Rigali, who succeeded Bevilacqua, said in a statement that the church is cooperating with authorities and would consider the grand jury's recommendations. He also said there are no priests working in the archdiocese who "have an admitted or established allegation of sexual abuse of a minor against them."

Outside the U.S., one Catholic bishop in France was convicted of shielding a priest in a sex-abuse. Pierre Pican, bishop of Bayeux-Lisieux in northwestern France, was sentenced to a three-month suspended prison term.

Over the past decade, prosecutors have pressed high-ranking church officials in the U.S. to accept responsibility for covering up abuse but never actually brought criminal charges against them as individuals.

For instance, Phoenix Bishop Thomas O'Brien admitted in 2003 that he sheltered abusive priests, an acknowledgment made as part of a deal with prosecutors that gave him immunity from any potential obstruction-of-justice charge. He agreed to institute reforms and cede some authority to other church officials.

The Diocese of Manchester, N.H., admitted wrongdoing but avoided criminal charges in 2003. The Archdiocese of Cincinnati pleaded no contest in 2003 to charges of failing to tell authorities about sex abuse claims against priests, paid a fine and created a fund for victims.

And in 2005, the Boston Archdiocese struck a deal to avoid an unprecedented federal indictment on allegations of making a false statement to federal authorities. Among other things, the archdiocese agreed to closer scrutiny of its child-protection programs.

The Philadelphia District Attorney's Office also convened a grand jury in 2002 to look into abuse by priests since the 1960s. Its report, issued in 2005, said that there was evidence of abuse by at least 63 priests and that church officials had transferred offenders to other parishes and dioceses. While Bevilacqua and other church officials were criticized, none were charged.

Abraham, district attorney at the time of the 2005 report, which included names and photographs of allegedly abusive priests, said Friday that it was the statute of limitations that held her office back. She joined other advocates in pressing for Pennsylvania's child protection laws to be rewritten. She said the resulting changes helped clear the way for the charges Williams brought.

In a statement announcing the case against the five defendants Thursday, Williams said: "I know ultimately they will be judged by higher authority. For now, it is my responsibility as the elected district attorney of all the citizens of Philadelphia to hold them accountable."

___

Lavoie reported from Boston. Associated Press Religion Writer Rachel Zoll in New York and videographer Angie Yack in Philadelphia also contributed.


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