Corruption

100Voices: Aruna Roy

by Chad Bouchard / Published in 100 Voices on Corruption, Corruption | Leave a comment

IACC Aruna Roy from 100Reporters on Vimeo.

Aruna Roy is an activist and founder of India’s Right to Information movement, which fought government secrecy and secured new freedom of information laws in several states, as well as a strong national law in 2005. She also serves on the National Advisory Council, a body set up to monitor the aims of the United Progressive Alliance, a coalition of Indian political parties founded in 2004. She spoke to staff writer Chad Bouchard on the sidelines of Transparency International’s 15th International Anti-Corruption Conference in Brasília.

Early Education in Bribery

by Linas Jegelevicius / Published in Corruption | 1 Comment

REUTERS / Mike Blake

Vilnius, Lithuania–Edita Bagdoniene furrows her brow as her 3-year-old son, Mykolas, splashes mischievously in puddles outside. Mykolas is absorbed in his game, but his mother is distracted with worry.

She wants to enroll him in preschool, where his games would have more structure, and he would learn to play with other children. But by her calculations, Mykolas would not get to see the inside of a preschool before his 10th birthday, barring payment of a hefty bribe.

And that is simply out of the family’s reach.

Preschools and kindergartens in Vilnius have long waiting lists for enrollment, and the only way for parents to secure a place for their children is through a cash-stuffed envelope.

“My brother’s friend’s family brought an envelope with nearly $200 inside to pay a preschool director to enroll their child,” said Bagdoniene. “Luckily, the director accepted the money even though the envelope usually has to be thicker.” She adds that a typical blatas, a Soviet-era word that has come to mean “bribe,” is usually about $400.

Since 2006, the European Commission has marked early childhood education as a top priority, and aims to give preschool access to 95% of children over 4 years old by 2020. But standing in the way in Lithuania and a number of other countries is an informal system of bribery to secure the coveted preschool slots. Among Lithuania’s four largest cities, fewer than 10 percent of children under three attend preschool, according to the report of the Vilnius-based European Institute for Gender Equality. Those numbers place the country among the European Union’s nine worst for preschool attendance.

The benefits of early childhood education are hardly in dispute. A longterm study of 20,000 pre-school children in France in the 1990s indicated that the longer children attended preschool, the greater their chance of success in later grades. Only 10% of preschoolers who attended for three years later repeated a grade. More than 30% of those who did not attend were held back.

Some 2,500 children are on waiting lists for just 490 slots available at public preschools in Lituania’s capital, and families with more than three children or single-parent households are favored in the enrollment system.

Some 450 children in the city attend private preschools, but tuition bills of up to $365 per month put that option out of reach for most families. The Bagdonai family’s monthly income consists of  Bagdoniene’s $250 in maternity benefits and her husband’s $600 salary as a translator.

“Most families bribe local preschool heads to have their children admitted,” said Arunas Bagdonai, 42, her husband.

The Bagdonai family had considered forking over a bribe, but instead pinned their hopes on a new electronic preschool admission system introduced this fall, in an effort to clamp down on the practice. However, rather than rooting out the demand for bribes, the electronic system appears to have added new layers of confusion.

By Bagdoniene’s count, Mykolas will have to wait seven or more years for a chance to attend preschool.

“Here is my calculation,” she said. “I put him on the enrollment list in the Seskine preschool when he was just born in the beginning of 2010. He was 128th on the list. That has inched up only 30 places over nearly three years. So at this pace, my son would be called to preschool when he reaches ten.” Bagdoniene said. “That is insane.”

Gintare Lavinaite, 24, the mother of a year-and-a-half-old son, is also frustrated by the lack of progress and the shortcomings of the city’s electronic enrollment system.

“I hurried to the municipality to sign up my child, but I was told the e-list would be reset on January 1st, 2013, and only sign-ups after that date would count,” Lavinaite said.

When the Bagdonai family tried to sign up their children online, they found mistakes.

The website told them there were vacancies in the preschool, so they tried to enroll Mykolas and his six-month-old brother, Gabrielus. The municipality never contacted them. Frustrated, the parents called the city administration, only to learn that the website had scuttled their application due to a shortage of available spots, Bagdoniene said.

“A lot of mothers complain that the public e-enrollment system is flawed – you see one set of numbers on it,  but then hear quite another when you call the preschools.”

When she contacted the schools about vacancies she saw listed on the Web site, administrators called her “naïve” for trusting the online information.

“The new system is not working. I am pretty sure bribes will find their way to the municipality’s IT specialists in charge of enrollment. Maybe the blatas will just become much bigger to pay for the system to be hacked,” she said.

But the director of the Education, Culture and Sports Department for the city, Gintaras Petronis, dismissed the criticism of electronic enrollment, saying he is confident the system will make school registration more flexible and organized.

“The e-system will sort through the existing waiting lists, discarding redundant registrations,” he said. “It has already found 600 duplicates. Besides, repealing some priority-enrollment benefits for socially-supported families will also help,” he said.

Fuelling frustrations, parents say preschool enrollment in Vilnius was a cinch just four or five years ago.

“There were plenty of vacancies for kids in the establishments. No parent had to think of a waiting list. The Conservatives are the ones to blame for this,” said Viktoras Malinauskas, a 34-year-old father of two.

When the ruling Conservative party, the Homeland Union – Lithuanian Christian Democrats (HU-LCD), came to power in 2008, they boosted maternity benefits as part of an effort to counter flagging birth rates due to massive emigration. Nearly half a million Lithuanians left the country from 2008 to 2011, according the EU statistics agency Eurostat. The party’s family-friendly platform won them votes, but schools were ill-prepared to handle the ensuing baby boom when the toddlers reached school age.

The policy has come under fire, with dozens of women accused of misusing the maternity leave benefits. Some mothers were charged with colluding with their employers to report inflated salaries to the govenrnment in order to gain bigger benefit payouts. The program was overhauled and trimmed due to concerns about fraud and its strain on the budget.

Meanwhile, corruption has emerged in answer to the competition for scarce services.

Rasa Grigaliuniene, deputy director of the Vilnius’ Zirmuneliai preschool, says many parents have offered bribes to help their kids get in the classroom.

“I recall when someone flung an envelope toward me and starting running toward the door. I had to chase the bribe-giver all the way to the parking lot and tuck the envelope forcibly into his pocket. Some crazed person even threatened to blow us up if we did not find a place for his child right away. We did not relent,” Grigaliuniene said.

Tatjana Gilevic, head of the Daigelis preschool in Vilnius, said the new system was plagued with errors.

The system did succeed in eliminating duplications, she said, but discrepancies between admission lists of the schools and municipal authorities persist. Gilevic does not alert the municipality when she comes across such errors. Swamped with work as they are, she doubts they would trouble over such details.

“Every system, even the most sophisticated electronic ones, can be cheated or hacked,” said Gilevic. “But only the future will show whether corruption can be rooted out.”

Aleksas Bruzas, chairman of Lithuania’s Education Employee Trade Union regards the new approach with caution.

“Corruption has been flourishing there, so it’s too early and too optimistic to expect that it will be rooted out any time soon,” Bruzas said. “Even with the e-thing. I reckon it’s only a matter of time before we all start hearing about attempts to hack the system.

Nevertheless, he says, it would be harder to track down and bribe the computer specialists in charge of enrollment than to pay a preschool administrator for the favor.

Meanwhile, the Bagdonai family is trying to remain upbeat despite the setbacks. “I will wait for the New Year and see what happpens then. But my gut feeling is the preschool corruption will not give up easy,” Bagdoniene said.

Time may eventually ease the burden on prechools. With the maternity benefits slashed significantly, national unemployment at 14 percent, and a large scale emigration underway, the short baby boom is set to recede — and with it the competition for preschool slots.

 

Linas Jegelevicius is the editor of the Palangos Tiltas, a newspaper in Western Lithuania resort town of Palanga, and a correspondent for the English-language Baltic Times.

 

“Big Boys” Plays Washington

by Diana Jean Schemo / Published in Corruption | Leave a comment

The West End Cinema will host a screening of “Big Boys Gone Bananas,” which documents the efforts of the Dole fruit company to block release of a film on  the company’s use of a pesticide banned in the United States on banana plantations in Nicaragua. This special screening includes a brief introduction to the film by Alex Gibney, and  an interview with the director of the film Fredrik Gertten.

Following the film, 100Reporters will host a brief panel discussion at the West End featuring Ken Silverstein, a member of 100Reporters and contributing editor at Harper’s Magazine, and Theodore Frank, a partner at Arnold & Porter who has litigated First Amendment cases.  Diana Jean Schemo, executive editor of 100Reporters, will moderate.

What:     Big Boys Gone Bananas, a film by Fredrik Gertten, followed by panel discussion and Q & A sponsored by 100Reporters.

When:    Monday, November 26, at 7:30 p.m.

Where:  West End Cinema, 2301 M Street, N.W.

                Washington, D.C.

Who:      Ken Silverstein

                Theodore Frank

                Diana Jean Schemo

How:     Tickets available at the West End Cinema website, or by clicking here.

Ken Silverstein, a freelance writer, was the former Washington editor for Harper’s magazine and is currently a contributing editor for the magazine. He has profiled Barack Obama and led major investigations into arms trafficking, money laundering and corruption in the international oil business for the magazine. He was a former reporter for The Los Angeles Times, and has also written for Foreign Policy, Mother Jones, Wallpaper, Slate, and Salon. From 1989 to 1993 he was a correspondent for the Associated Press in Brazil. His stories on ties between the government of Equatorial Guinea and major U.S. companies—including Riggs Bank, ExxonMobil and Marathon Oil—led to the convening of a federal grand jury, and to investigations by the Senate and the Securities and Exchange Commission. His report, co-written with Chuck Neubauer, on a lobbying business opened by Karen Weldon, daughter of Rep. Curt Weldon of Pennsylvania, led to a federal investigation. Silverstein’s 2004 series in The Los Angeles Times, “The Politics of Petroleum,” won an Overseas Press Club Award. He received his B.A. from The Evergreen State College.


Ted Frank is a Senior Counsel at Arnold & Porter.  He is a graduate of the University of Texas School of Law, where he was an editor of the Law Review.  Upon graduation from law school, he clerked on the United States Court of Appeals for the Fifth Circuit and then took a teaching fellowship at Harvard Law School, where he earned an LL.M.

Ted has been practicing communications law for over 40 years.  He has represented both broadcasters and telecommunications companies before the FCC and in the Court.  His broadcast work has included advising broadcasters on a wide variety of matters, including First Amendment issues, defamation, invasion of privacy, and related issues outside the jurisdiction of the FCC.  He represented PBS in connection with its broadcast of the Death of A Princess and Choosing Suicide programs and First Amendment challenges to PBS’s ability to select the programming it distributes.  He has also successfully defended First Amendment challenges to the ability of public broadcasters licensed to State entities to select participants in election debates and related programming.  He has successfully defended broadcast clients charged with broadcasting indecent material.

Diana Jean Schemo is executive editor and co-founder of 100Reporters. She is an author and award-winning veteran national and foreign correspondent, with more than twenty-five years at The New York Times and The Baltimore Sun.  She has covered poverty and child abuse, religion and culture. The Times nominated her coverage of education for a Pulitzer Prize in 2003.

As bureau chief for the Times in Rio de Janeiro from 1995 to 1999, Schemo tracked the drug war in Colombia, and that country’s brutal conflict between leftist rebels and right-wing paramilitaries. Her stories chronicled the rise of Hugo Chávez in Venezuela, counterfeiting in Paraguay, indentured servitude in Brazil, and journeys to the heartland of Brazil, where she wrote of previously uncontacted native tribes.

Before joining the Times, Schemo became the first woman assigned overseas for The Baltimore Sun, heading the paper’s West European bureau in Paris and, upon the fall of the Berlin Wall, opening a second bureau in Berlin. She covered the trial of Klaus Barbie, the infamous “Butcher of Lyon,” nuclear arms negotiations, the Kurdish exodus from Iraq following the first Gulf War, and the collapse of Communism in Eastern Europe. She has reported from more than twenty-five countries and regions, from Somalia to Israel, Iraq to the Amazon. She is a three time winner of the Times Publisher’s Awards, and other prizes.

Long Hot Day in Hong Kong

by Simona Sikimic / Published in Corruption | Leave a comment

Hong Kong Chief Executive Leung Chun-ying (R) with Chief Secretary Carrie Lam and Secretary for Education Eddie Ng earlier this week, after backing down from proposals to introduce compulsory Chinese national education in schools. Leung is also snared in a housing scandal that shining a new light on the island’s elite. / REUTERS / Bobby Yip

Hong Kong–Shortly before his appointment as Hong Kong’s development minister, Paul Chan Mo-po joked about his long-term ambitions, telling media “one day is already a long time in politics.” In hindsight, he had no idea just how right he was.

Chan may have been answering rumors that he would quickly abandon the development portfolio to serve as Hong Kong’s deputy finance minister, but a mere day after entering the development post in late July, the trained accountant found himself under investigation by his own department.

His case was only the latest chip in the Hong Kong elite’s once-pristine image, which has been hard hit at a crucial time for the former British colony. As the island struggles to define its relationship with mainland China, it is also gearing up to directly elect its chief executive for the first time in 2017 and its legislature in 2020. [Full Article]

BAE Calls Off World’s Biggest Arms Merger

by Diana Schemo / Published in Corruption | Leave a comment

LONDON, Oct 10 – EADS and BAE Systems called off the world’s largest defence and aviation merger on Wednesday, and sources close to the talks blamed Germany for wrecking the $45 billion deal.

BAE said it had become clear that the interests of the French, British and German governments could not be reconciled with each other or with the objectives that BAE and EADS established for the merger.

“BAE Systems and EADS have therefore decided it is in the best interests of their companies and shareholders to terminate the discussions and to continue to focus on delivering their respective strategies,” BAE said in a statement.

Securing such an enormous and complicated cross-border deal in a sector where commercial considerations are typically trumped by political, economic and national security concerns was always going to be desperately difficult.

The companies had until 1600 GMT to declare their intentions and either scrap the merger, ask British regulators for more time or finalise their plans to create a group employing nearly quarter of a million people that could compete with U.S. rival Boeing.

Germany blocked the deal, although all demands from the German side were met. Top German negotiator Lars-Hendrik Roeller was the one who formulated all demands and said no in the end,” a source close to the deal said. Roeller is Chancellor Angela Merkel’s senior economic adviser.

Before the talks collapsed, several sources close to the negotiations had said Merkel opposed the proposal to combine Airbus passenger aircraft with UK defence contractor BAE.

“Merkel is against the deal but has not given reasons,” another source involved in the talks had said.

Sources said Germany had wanted parity with France in the shareholding of the new group, plus the basing of some company headquarters in the German city of Munich.

France and the UK agreed that Germany have the same stakeholding as France in the merged group. Separately, vast guarantees were given regarding safeguarding national security interests, sites, jobs. The topic of headquarters was being discussed very emotionally, but not an issue big enough to let the deal fail,” a source close to the transaction said.

BAE SHARES DOWN, EADS UP

At 1234 GMT BAE shares were down 1.75 percent at 319.7 pence in London, while EADS shares were up 3.4 percent at 26.98 euros in Paris.

Brinkmanship is common in European negotiations, and Franco-German-led EADS – whose full title is the European Aeronautic Defence and Space Company – was itself only created after talks about its structure collapsed and were resurrected weeks later.

“It is, of course, a pity we didn’t succeed, but I’m glad we tried. I’m sure there will be other challenges we’ll tackle together in the future,” said Tom Enders, EADS chief executive.

The merger had faced growing unease from investors in both companies who complained they were lacking information. Many people bought shares in EADS on the strength of its growing Airbus civil unit, rather than its defence ambitions, while BAE investors were attracted by its dividend yield.

Germany does not currently have a direct stake in EADS, but is represented by industrial ally Daimler AG, which holds just over 22 percent. France holds an identical stake, split between the state and French publisher Lagardere .

The British government holds a golden share in BAE that allows it to block foreign takeovers.

Adding to the hurdles facing the deal, BAE’s largest shareholder, fund manager Invesco Perpetual, with 13.3 percent, had said it was not convinced of the strategic rationale for the combination.