Thursday, 29 October 2015
No Right Turn: Statute or its bullshit
interesting that the article has disappeared from the site ... Who got called?
Tuesday, 21 February 2012
NZ helps islands region launder billions?
Published February 2012 in Islands Business International,
Business Intelligence section.
by Jason Brown
An Auckland bar, with young Asian women in white mini-skirts. Two Russian men light up a fat joint.
They talk, smoke and casually pass the doobie. Bemused patrons look on. One Russian is chatty. The other, eyes dead, scans each end of the street.
Welcome to 100% pure New Zealand, an unofficial finance centre to mafia gangs from Europe and Asia—and white collar criminals.
“Money laundering prosecutions in New Zealand continue to be low,” reads a 44-page “National Risk Assessment”.
New Zealand police working in the country’s FIU, Financial Intelligence Unit, attribute a low rate of prosecutions to “the result of perceptions of complexity around financial investigations, low enforcement priority and limited resources.”
Another is the “poor use [and] interpretation of legislation, leading to weak legal decisions and restrictive precedent.”
FIU police estimate money laundering through New Zealand companies at more than US$1 billion each year. The 44-page review leaves a question unclear. Gangs are the main problem in New Zealand—or white-collar fraud?
Declaring that 95% of money laundering “is related to drugs”, the police Asset Recovery Unit barely scrapes back US$15 million.
There is a “lack of focus on fraud and financial crime in general by law enforcement agencies”, admit the New Zealand police.
Justice officials and police are not alone.
New Zealand media are also slow to pick up on money laundering, with only one newspaper, the New Zealand Herald, reporting the police review—but not until January 2012, five months after publication. The report was buried on page five.
Elsewhere, journalists are more aware of the role played by New Zealand as a major centre for money laundering.
“The Proxy Platform” is an editorial slogan applied to global money laundering networks, as exposed by an aid-funded alliance of investigative journalists, OCCCP, the Organised Crime and Corruption Reporting Project.
Their final report, published just before Christmas, includes Auckland as a ground zero of money laundering.
In the main CBD, a Queen Street address was home to rented offices of the GT Group, a main player in the Proxy Platform, representative to 2,100 “shell” companies. Offices remain in Vanuatu, Samoa and the Cook Islands, according to a website for GT Group International, headquartered in Port Vila.
According to OCCCP, GTI acts as a conduit linked to secret networks laundering billions.
One set of transactions alone, through a GTI registered company called Tormex Ltd, was worth an estimated US$680 million, flowing into an Oceanic abyss of money laundering.
A similar acronym, GFI, stands for Global Financial Integrity, a group on the other side of the law, focused on exposing money laundering through tax havens and other finance centres.
What GFI terms “illicit finance flows” grew from a “conservatively estimated” US$353 billion at the start of the last decade, to US$775 billion in 2009.
Just the year before, in 2008, money laundering hit a high of US$1.31 trillion, before the fallout from the “Global Financial Crisis” hit bank accounts, secret and otherwise.
Arguably, New Zealand has the most free market economy in the world and an exceptionally light regulatory environment.
“Currently, there is no AML supervision except to a limited extent for banks and casinos,” reads the August 2011 police review; AML referring to “anti-money laundering.”
Authorities in New Zealand seem intent on blaming “organised crime” yet audit giant KPMG uses its “Fraud Barometre” report to identify white collar crime as a much larger problem than gangs.
Established in 1996, the NZ FIU did not write its first National Risk Assessment until 2010, some two decades after joining FATF, the Financial Action Taskforce, in 1990.
New Zealand is a first world nation that has not ratified UNCAC, the United Nations Convention Against Corruption. It compares with its closest trading partner, Australia. In January 2012, Australia released an independent review into its financial intelligence unit, AusTrac, and related agencies.
It spotlights a downward trend for offshore finance havens across the region, revealing plunging revenue in Vanuatu from Australia, which signed an MOU with AusTrac in 2002.
Also last month, a call from Christian Aid in the United Kingdom to end tax haven secrecy, calling it a “global curse” claiming some US$160 billion from poor countries, more than they receive in aid.
Back at the Auckland bar, the two Russian men finish their smoke; flick the butt over the balcony.And head inside, upstairs to a private suite.
The Asian girls avoid eye contact and take more drink orders.
EARLIER
http://100percentpurenzcorruption.blogspot.co.nz/2011/05/nz-role-in-drug-arms-and-tax-scams.html
Wednesday, 16 November 2011
New Zealand aid transparency rates poorly
| New Zealand ranks 12th on a list of countries whose aid transparency is rated as "poor". News media coverage is similarly impoverished. |
. . .
NEWS ALERT
Two days after the Aid Transparency Index released its first "pilot" review of global donor systems, mainstream New Zealand media have yet to pick up on the country's poor rating.
Only Yahoo News, Voxy and Scoop news agency carried reports, all based on a press release claiming the index "hailed" the World Bank as the "best performer".
Least worst might be more accurate.
Ratings range only from fair, through moderate and poor, to "very poor" - with apparently no rankings for 'good' or 'very good.'
New Zealand is ranked at 12th worse on a list of 25 countries whose aid transparency is rated as "poor", and 30th overall. As with a number of other indexes, New Zealand rates lowly compared with governance leaders elsewhere, notably western European countries, mostly Scandinavian.
News media in New Zealand are not alone in ignoring the new index.
At post publication, mainstream news media in Australia are yet to report the index, at all, with civil society organisations barely better.
Worldwide, barely a dozen articles show up on Google News, with most coverage on the aid index coming from the United Kingdom, prompting debate in the House of Lords.
Primary conclusions from the pilot 2011 Aid Transparency Index :
> Most aid information is not publishedPrimary recommendations :
> Information is produced but not always published and is far too hard to access and use
> Achieving aid transparency is possible
> Increase political will and action – using the Aid Effectiveness Agenda as a springboardAid Transparency Index about us.
> Organisations should publish what they have, build systems to collect what they don’t and make sure it is all accessible
> Aid actors must rally round the common IATI standard and increase its coverage
> corrections > updates > new zealand ranking changed from 40th to 30tt
. . .
Monday, 15 August 2011
NZ streamlines ethics process
Flying the flag : or are New Zealand ethics fraying in the wind ?
NEWS
Ethics committee recommendations "sensible" - Hutchison
National MP and Parliament's Health Committee chair Paul Hutchison told conference attendees the Government viewed the recent enquiry recommendations on improving ethics committees as "pretty sensible stuff".
It was clear from submissions from committees that a raft of practical changes was needed - eg, speedier processes, a clearinghouse, smaller committee size and an option to add expert members.
Industry submitted it was "blindingly obvious" clinical research was important for New Zealand, whether in medical devices, pharmaceuticals or functional foods, he says.
The call to streamline ethical approval was echoed by many at the conference, including Christchurch Clinical Studies Trust director Richard Robson.
"Asked about companies sponsoring a researcher to present results to a conference, he says if the hospitality is disproportionate, it can be seen as being intended to foster sales or to inappropriately obtain or retain business."
Government spends more than $13 billion a year on health care, with some $700 million going on pharmaceuticals, according to Pharmac figures, representing the lowest level of spending on health care and drugs in the developed world.
Tuesday, 31 May 2011
Little or no corruption law enforcement
. . .
NEWS
New Zealand is among 21 of 37 countries across the developed world which have "little or no enforcement" of anti-corruption laws, reads a new report.
The report comes from Transparency International, the world's leading anti-corruption organisation.
Unlike similar reports of a global nature, the TI report last year named names, but could not do the same this year:
"One case and one investigation were initiated in 2010 but no details are available. In the 2010 report two investigations were reported. The first was an investigation of SP Trading Limited. This case involved a New Zealand shell company allegedly implicated in the sale of 35 tonnes of North Korean explosives and anti-aircraft missiles to Iran. The police and the Serious Fraud Office undertook an investigation, which has been completed without any resulting prosecution. The second investigation concerned possible involvement of a New Zealand company in connection with allegations that Hewlett Packard had paid bribes to secure a contract in Russia. According to the TI expert, government officials have indicated that New Zealand’s involvement in that investigation has ended."As well as a lack of enforcement, TI said that experts had again "found significant inadequacies in the legal framework for prohibiting foreign bribery."
Problems highlighted in the report involving New Zealand include:
Inadequate resources.
Decentralised or uncoordinated enforcement.
Inadequate complaints system and/or whistle-blower protection.
Lack of awareness-raising.
Lack of access to information about the number of foreign bribery cases.
Information on status of cases and other details is not systematically accessible.
Sunday, 15 May 2011
NZ role in drugs, arms and tax scams
New Zealand company records show that snuggled up inside Bristoll Export is yet another shell company that can be traced via Panama to an unrelated offshore banking firm in Cyprus operated by a former Russian diplomat. Further evidence, perhaps, of an even more impenetrable labyrinth.
Entitled "Inside the shell: drugs, arms and tax scams", the piece raises serious questions about how easily companies can be set up in New Zealand, a practice praised as "business-friendly" by organisations like the OECD, apparently without regard to ongoing costs in crime and corruption.
Wednesday, 27 April 2011
Justice should prevail in Urewera 18 jury decision
Tuesday, 26 April 2011
Fraud barometer hits record $100m as big cases reach court
Police staff set to help fraud office tackle backlog - Business - NZ Herald News
Sunday, 26 December 2010
stunning recklessness, excess and greeed
"The recklessness, excesses and greed have been stunning. But, until Five Star directors Nicholas Kirk and Marcus MacDonald were this week jailed for lying to investors, not a single finance company executive had spent a single night behind bars."
Tuesday, 14 December 2010
Wong inquiry 'not warranted' - AG - National - NZ Herald News
"It will do more 'public good' for Government to adopt the recommendations of a report tabled today on improving serious flaws in the entire ministerial spending system, she says."
Left unsaid was any word on whether conflicts of interest in promoting her husband's private business constitute corruption. Or whether they profited from that conflict of interest.
Monday, 13 December 2010
Update 100-year-old law, says SFO - National - NZ Herald News
Thursday, 25 November 2010
new zealand growing up poorly
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| New Zealand performs poorly compared with other first world countries but the latest research ignores economic factors. |
. . .
COMMENT
Growing Up in New Zealand - a survey launched in 2008 - challenges "much rhetoric" about early childhood in so-called Godzone.
"Although a developed country, New Zealand faces real challenges in health, welfare and education, and
performs poorly in OECD rankings in several of these parameters."
Professor Stuart McCutcheon, Vice-Chancellor at the University of Auckland says that more than 7,000 babies have been "recruited" into the study.
"Their parents have volunteered their time over the next 21 years to provide insights into their lives and those of their children."
RHETORIC
First findings from the survey however point to politically sensitive outcomes.
"Information from the first of many interviews in this study challenges much of our traditional rhetoric about growing up in New Zealand," reads an executive summary of the 101 page report.
Study Director Susan Morton said there were "many" wonderful things about growing up in New Zealand, but added, there are also some "negative things" such as poorer health and school achievement among Māori and Pacific children and those from "impoverished families."
INEQUALITY
The initial research shows "inequality" among children before they are even born. It starts with the access their pregnant mums have to information and help.
"Nearly half of the mums in deprived areas were not aware of the Working for Families tax credit."
Despite highlighting that lack of financial information, the report only mentions economic factors four times, compared with 40 mentions for antenatal factors.
INEQUITY
Previously identified as one of the most economically unequal countries in the OECD, New Zealand researchers however seem reluctant to question economic orthodoxies. Morton refers to "impoverished" families, in a message on the website, but the word does not appear in the study itself.
"Poverty" is mentioned once, in the appendix, considering "appropriate policy initiatives to address outcomes related to the wider influences on development including family structure and support, poverty and financial stress, social networks, cultural affiliation, physical environments and the media."
Even the word "poor" - as in 'performing poorly' - is not used in the economic sense. The only reference to OECD after the foreword refers to immunisation, not economics. Responses to the study findings via the Science Media Centre also ignore poverty.
. . .
Sunday, 7 November 2010
company fraud nearly doubles in new zealand
"The survey of about 200 groups, in both government and private sector, on both side of the Tasman showed the cost of fraud rose from an average NZ$1.9 million in 2008, to NZ$3.8m this year."
Friday, 29 October 2010
nz pm gets update on suicide secrecy
"The annual suicide rate in New Zealand is nearly 50 per cent higher than that of the road toll, figures show. The media is prohibited from reporting the circumstances of suicide unless the coroner allows it."Strict secrecy has not resulted in fewer suicides. In world terms, New Zealand is among the top ten highest suicide rates for youth. Also stopped by secrecy laws is more public debate over why New Zealand is one of the world's few societies to suffer proportionally more youth suicide than adult. For the last 25 years in New Zealand, that society has been dominated by a hard right-wing economic ideology.
Wednesday, 27 October 2010
minister just walks away
"The danger for Ms Collins – and for the integrity of justice system – is that the lesson the public will take from the Wilson episode is that, when there is a problem involving the judiciary, shortcuts are taken, it is tidied away, and judges whose behaviour is questioned walk off with what Auckland University law expert Bill Hodge has described as "a very sweet package".
. . .
why NZ is not least corrupt in the world
Search Results
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NZ tops anti-corruption index - but our offshore dealings more dubious
No Right Turn: Something to be proud of
NZ, Denmark, Singapore least corrupt countries in index
PSA Congratulates Public Servants For Top International Ranking
NZ shares top spot on anti-corruption index
TI ranks NZ least corrupt
Index ranks NZ least corrupt
Call to tighten corruption rules
Clark leaves, Corruption leaves too…yeah right
More links on Scoop on corruption
Monday, 25 October 2010
OECD warning on Transparency International
"Not only are the individual country scores provided by some of these systems less accurate than many users seem to assume, they reflect biases of which users are often unaware," reads the release.
In a press releasetitled the "transparency paradox", the Organisation for Economic Cooperation and Development highlights a "policy brief" released ahead of tomorrow's CPI figures. The OECD policy brief is by far the most heavyweight critique of the CPI in its 15 year history. Some suggest the survey reflects well known but relatively minor third world corruption at the expense of ignoring massive first world scandal.
Full release follows.
PRESS RELEASE
THE TRANSPARENCY PARADOX: GOVERNANCE RATINGS
25 October 2010, Paris – Tomorrow, Transparency International will release its 15th annual Corruption Perceptions Index. While not disputing the importance of these and other such international governance indicators, the authors of the OECD Development Centre's new Policy Brief "Measuring Governance" warn of a transparency paradox. They urge potential users to be more inquisitive about the real contents and precision of all international governance rating systems, and more careful how they use them.
Not only are the individual country scores provided by some of these systems less accurate than many users seem to assume, they reflect biases of which users are often unaware. The result can be misguided discrimination against developing and emerging economies not only by the many private international investors who use them, but by official aid donors as well.
'All international governance ratings systems are normative and imply a judgment. They are often not determined by an objective theory of what constitutes good governance, or of how to distinguish good from bad governance,' said Charles Oman, Head of Strategy at the OECD Development Centre. 'Governance indicators need to be transparent as official aid agencies often use them as a basis for their aid-allocation decisions.'
To access the new policy brief on "Measuring Governance" by The OECD Development Centre, please click here.
To speak to Charles Oman, please call: +33 (0)1 45 24 82 96.
. . .
Tuesday, 28 September 2010
NZ giant rip off says All Black writer
Justin Marshall, 36, agreed with rugby correspondent Peter Bills that New Zealand was an expensive country - and not just for visitors. Bills - sounding a caution ahead of next year's Rugby World Cup - said the prices of everyday articles had "horrified" him and Kiwis were "victims of massive overcharging". He said New Zealand was becoming "one giant rip-off".
NZ really expensive, says All Black - National - NZ Herald News
Wednesday, 22 September 2010
Spot the missing link
COMMENT
by jason brown, 100% PNZC editor
Scroll down the list below and spot which country link is missing.
Offshore banks in Niue and the Cook Islands, staffed mostly by Kiwis, anyone?
Australia, the country we are supposed to be catching up to, according to Prime Minister John Key, leads from the front.
OECD anti-brbery signatories:
Country database: anti-corruption resources in the Initiative's member jurisdictions
The database on anti-corruption resources in the Inititative's member countries and economies is currently being updated, and the available countrysheets will be enhanced. |



