Just as the Tax Justice Network predicted yesterday, Transparency International has brought out its Corruption Perceptions Index (CPI) for 2008, and Singapore, one of the world's most toxic tax havens, is ranked as the fourth "cleanest". Right behind it, in fifth place, is another singularly unpleasant receptacle for dirty money, Switzerland.
Worse still, the accompanying press release appears to have lost touch with reality. Whereas at least the 2007 blurb accompanying the CPI's release recognised the centrality of these kinds of dirty money centres facilitating flows of dirty money, this one simply quotes a Professor, Johann Graf Lambsdorff of the University of Passau, who compiles the index, who says nothing that we didn't know already. In terms of the responsibility of western countries for corruption, the blurb then goes on to focus on bribery, which as Raymond Baker has shown, only accounts for an estimated three percent of the problem, in terms of cross-border financial flows.
Anyone involved in analysing corruption - and that, we hear, includes many people inside TI, should be aware by now that there is a new game in town. It's been out there for some time now, and nobody has ever told us that (or how) we are wrong. It's called Phase Two in the corruption debate. Plenty of people inside Transparency International are with us. Switzerland and Singapore, along with all the others up there in this wrong-headed table, are simply not clean states. It is time for real change.
If Transparency International can't see that holding illicit funds and facilitating tax evasion is corruption then they're part of the problem and not part of the solution. It's decision time guys: you need to get off the fence.
NB: Thanks to Nick Shaxson of TJN for this.
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Richard Murphy,
legalised corruption and conflict of interest should be taken as a new factors for compiling the index. You will then see Singapore drop significantly in ranking. Combines with lack of transparency and accountability, you have the perfect storm for legalised corruption and indefinite conflict of interest within gov body. There must be a reason why Singapore Inc only works in Singapore and not when it extends its influence overseas.
It is time the index take in account all these factors and not misleading the people.
U are obviously someone who chooses n picks comments which support yr argument to publish! Talk of transparency! Rubbish! 🙄
About Switzerland and Corruption! I was 30 days in prison due to Julius Baer and then Julius Baer offered approx USD 450’000 paid over five years monthly installments and Julius Baer would drop all complaints against me as well. I used to be an employee in their Cayman office that says it all. I turned the offer down and accused the Bank of bribery. The decision of Zurich`s prosecutor was that this is not bribery because no official person was a party. Bribery in Switzerland has to involve an official person otherwise it is comon business in Switzerland I was told by prosecutior’s office in writing.
This means put your bribery funds into a Swiss Bank and you are safe except you are an official person. No information exchange, no dual criminality issue etc.!
Is here a taste of corruption? Who are the parties? That’s all I can point out!