Italian Political scandal

This is a list of major political scandals in Italy (This is an incomplete list)
  • Former Prime Minister Silvio Berlusconi underage prostitution charges
  • Lockheed bribery scandals, which caused President Giovanni Leone to resign
  • Masonic lodge Propaganda Due scandal, 1980s
  • Tangentopoli, diffuse corruption cases in national politics in the early 1990s
  • Revelation of Gladio, a NATO anti-communist stay-behind network
  • Niger uranium forgeries used by George W. Bush as pretext for the 2003 invasion of Iraq
  • SISMI-Telecom scandal, domestic surveillance program
  • Bancopoli, bank takeover-merger scandal of 2005, involving insider trading, audiotapes and political influences
  • Abu Omar case

SOURCES : www.independent.co.uk

Italian Police Nab Dozens in 1 Mln Euro Disability Scam

February 1, 2012
Naples police on Wednesday arrested 32 people on charges of defrauding the State for falsely claiming disability benefits, the ANSA news agency reported.
Those detained are thought to have defrauded the State of an estimated one million euros.
The charges against them include aggravated fraud against the State, counterfeiting official stamps and filing false declarations.

SOURCES : RIA Novosti

North Dakota Governor Thomas H. Moodie (D) impeached and removed from office for not meeting the constitutional requirements for office.(1935

Thomas H. Moodie
Thomas H. Moodie  was born in Winona, Minnesota. He served a brief term of less than a month as the 19th Governor of North Dakota in 1935. After he was inaugurated in January 1935, it was revealed that he had not officially been a resident of North Dakota for the mandatory five years, and he was removed from office in February 1935.

● After the election, it was alleged that Moodie did not meet the constitutional residency requirements for holding office.
● The attorney general brought a challenge to Moodie's eligibility for office in the state Supreme Court.
● The House narrowly passed an impeachment resolution that did not mention specific charges and authorized a committee to formulate the charges. Reports indicated that the charge would be a misdemeanor in office—that he took office with knowledge that he was not qualified.
● The attorney general blocked a plan to elevate the lieutenant governor, ruling that impeachment was not complete until the House presented the Senate with articles of impeachment.
● Impeachment proceedings halted when the state Supreme Court took up the case. The court later removed Moodie as unqualified for office.
● On the last day of session, the House voted to expunge the impeachment resolution and all references to it from the journal (“The Gubernatorial Controversy in North Dakota,” American Political Science Review, Vol. 29, No. 3, p. 418 (June 1935)).

SOURCE : http://www.cga.ct.gov/

Oklahoma Governor Henry S. Johnston (D), impeached twice, was convicted the second time and removed for "general incompetence" (1928–1929)


Henry S. Johnston, the seventh governor of Oklahoma, was born in a log cabin
near Evansville, Indiana, on December 30, 1867. When only twenty-four years of age he
migrated to Colorado, where he studied law and was admitted to the bar in 1891. A few
years later he came to Perry, Oklahoma Territory, where he practiced law, and in 1906
was elected to membership in the Constitutional Convention where he served as
temporarily as presiding officer. He was also chosen a member of Oklahoma’s First
Legislature, and served as president pro tempore of the Senate. He was prominent in
Masonic circles and served as Grand Master of the Masonic Lodge of Oklahoma. He was
a favorite among prohibitionists and Protestant churchmen.
Governor Johnston entered his term as governor on January 10, 1927 with every
prospect for a successful administration. As governor the legislature approved such
proposals as the establishment of a crippled children’s hospital and increased the school
aid appropriation to $1,500,000 annually, “the highest public school subsidy in state
history to the time.” However, before the legislature adjourned complaints were
launched against the governor’s confidential secretary, Mrs. O. O. Hammonds. It was
alleged that she had too much influence over Johnston’s actions and policies, such as
making executive decisions and controlling appointments, and it was demanded that she
be discharged. The accusation was but a step from charging the governor with neglecting
his duties. Additionally, criticism came when the governor proposed to change the State
Highway Commission from three to five members as well as the commission’s newfound
preference of using asphalt over concrete for paving state roads.

Before 1927 came to an end House and Senate leaders were determined to
discredit Governor Johnston even planned to meet under special session under authority
of the newly adopted initiative proposition, a measure passed in 1923 to consider
Governor Walton’s impeachment charge. The declared purpose was to investigate the
governor. However, the State Supreme Court ruled the initiative proposition
unconstitutional, which meant that the legislature could only meet at regular session or
when called by the governor. In addition a district court in Oklahoma City issued an
injunction. Legislative leaders ignored both the court ruling and the injunction, and
proceeded to the state capitol only to be turned away by National Guard troops there on
Johnston’s orders. The legislature then convened at the Huckins Hotel in downtown
Oklahoma City on December 13 where the Senate, acting as a court of impeachment,
agreed upon charges against the governor as well as members of his administration.
However, with the realization that the courts were on the governor’s side and concerned
over the legality of their meeting, the Senate later turned down the charges and the
legislature adjourned. Johnston was vindicated and praised for his restraint in using the
courts rather than martial law.
Johnston could have served out his term without additional legislative harassment,
but his political doom was sealed with the presidential election of 1928. The Democrats
selected Alfred Smith of New York for their presidential candidate. The fatal blow came
when the governor campaigned across the state on Smith’s behalf. Smith had announced
he was Catholic, and against prohibitionists and “religious bigots.” The Republican
candidate, Herbert Hoover, overwhelmingly took the office and the Republican party
took several state offices including seats in the Supreme Court, a near majority in the

lower House and substantial gains in the Senate. “Democratic Wrath” was heaped on
Johnston and he was held responsible for the disaster.
When the legislature met again for its regular session in January 1929 a
combination of Republicans and insurgent Democrats set in motion a second
impeachment effort. Thirteen charges were presented to the Senate, eleven of which
were accepted. Governor Johnston was suspended from office on January 21 and
Lieutenant Governor William Holloway became acting governor. Johnston’s
impeachment trial began February 6 and lasted 6 weeks. Finally on March 20, the
governor’s ordeal ended with the Senate voting to remove him from office on the
eleventh charge, that of general incompetency. He was acquitted of all others.
Johnston returned to the Senate serving from 1933 to 1937. He maintained his law
practice in Perry until his death on January 7, 1965. He is buried in Perry.

SOURCES : http://www.odl.state.ok.us/oar/governors/bios/johnston

Oklahoma Governor John C. Walton (D) – Due to growing influence and rioting of the Ku Klux Klan, Walton declared martial law and suspended the writ of habeas corpus without the authority to do so. He was impeached and removed. (1923)

John C. “Jack” Walton was born in Indianapolis, Indiana on March 6, 1881 and
lived ten years of his youth in Lincoln, Nebraska. Walton joined the army in 1897, and
although he saw no foreign service during the Spanish-American War, he lived in Mexico
for some time. He then traveled to Oklahoma Territory in 1903 to work as a contractor
and civil engineer. His political career began in 1917 when selected as Public Works
Commissioner of Oklahoma City and later served as city Mayor from 1919 to 1923.
Walton entered the Governor’s race in 1922 as the Democratic nominee. As Oklahoma’s
fifth governor, Walton served the shortest term, from January 9 to November 19, 1923.
His platform speeches, campaign and inaugural ball were some of the liveliest and most
colorful events in the state’s history.
Although Walton represented the more radical elements of the Democratic Party,
the legislature agreed with much of his Reconstruction League program and proved to be
one of the most progressive legislatures. Reforms included an expanded farm
cooperative program, revision of the Workman’s Compensation Law for improved
benefits, stronger warehouse inspection laws to satisfy wheat and cotton farmers, the
state’s first free textbook law, aid for weak schools in the amount of $1,000,000, stricter
penalties for violating state banking laws, welfare legislation strengthened, and a cotton
grader and assistants under control of the Board of Agriculture.
Walton’s problems began when he fluctuated between the League advisors and
the conservatives in the legislature. His attempts to appease one group alienated the other
and vice-versa until both withdrew their support. To earn patronage from conflicting
factions, he made appointments to positions in state government and higher education.

For example at the University of Oklahoma, Walton sought gubernatorial favors from the
Board of Regents, the president and faculty. Walton sought to reorganize the institution
on a political basis and pressured University President, Stratton D. Brooks, to resign. At
the A & M College at Stillwater, Walton managed the resignation of President J. B.
Eskridge. With military guard, Walton appointed to the position George Wilson,
president of the Farm Labor Reconstruction League and one of Walton’s advisors.
Ku Klux Klan activity excessively increased during Walton’s term. He asserted
that hostility towards him stemmed from the KKK. In fact, Walton placed Okmulgee
County under martial law and Tulsa County likewise with the additional penalty of
suspension of habeas corpus; the latter step forbade by state constitution. When an
Oklahoma City grand jury prepared to investigate the governor’s office, Walton put the
entire state under martial law on September 15, 1923 with “absolute martial law”
applicable to the capital. Impeachment demands were rampant and legislative leaders
responded with a call for special session. A petition was circulated, adopted and passed
on October 2, which allowed the legislature to assemble on its own motion.
In an attempt to override the legislature Walton called a special session on
October 11 to enact measurements against the Klan. The legislature refused the
governor’s request and recessed until October 17 when they met in reply to the call of
Speaker of the House, W. D. McBee. The house developed twenty-two charges against
Walton and voted for impeachment. On October 23, Walton was suspended and
Lieutenant Governor Martin E. Trapp became active governor. Tulsa house member
Wesley E. Disney led the prosecution against Walton in the senate, which was presided
over by the Chief Justice of the State Supreme Court. Eleven charges were sustained,
including “illegal collection of campaign funds, padding the public payroll, suspension of
habeas corpus, excessive use of the pardon power, and general incompetence.” On
November 19, 1923 Walton was convicted and removed permanently from office. The
bitter factionalism that developed during Walton’s administration would remain a vivid
memory for future gubernatorial administrations.
In the 1924 election Robert L. Owen, senatorial incumbent since statehood,
retired and Walton won the Democratic nomination for U. S. senator. The abnormality of
Walton’s nomination, following so closely after his impeachment, is partly explained
because he was the only candidate who publicly condemned the KKK. Although, Walton
lost, he later served in the State Corporation Commission from 1933 until 1939, when he
retired to enter private law practice. He ran as Democratic gubernatorial candidate again
in 1934 to replace William “Alfalfa Bill” Murray and again 1938 to replace Ernest W.
Marland, but was unsuccessful in both attempts. He died November 25, 1949, and is
buried in Rose Hill Cemetery in Oklahoma City.

SOURCES : http://www.odl.state.ok.us/oar/governors/bios/walton

Oklahoma Governor James B. A. Robertson (D) involved in political scandals with administering federal funds. (1920)

James Brooks Ayers Robertson (March 15, 1871 – March 7, 1938), sometimes called J. B. A. Robertson, was an American lawyer, judge and the fourth governor of Oklahoma. Robertson was appointed by the state's first governor, Charles N. Haskell to serve as a district judge.

  •  Robertson was involved in political scandals with administering federal funds.
  • The House came one vote short of impeachment (http://www.odl.state.ok.us/oar/governors/index.htm. This document also states that Lieutenant Governor Martin E. Trapp was impeached but we did not find any other information on his impeachment).
SOURCES:  Wikipedia

Scam is National game now a days



In today world there is lot of corruption, fraud, and scam in politics and there related cooperatives.

Russian Gang Nabbed in NY for $279 Mln Insurance Fraud

MOSCOW, March 1, 2012
A group of 36 Russians was busted on Wednesday in New York for allegedly running a $279-million insurance fraud scam involving false car accident victims, corrupt doctors and lawyers, the Federal Bureau of Investigations said.
Doctors who were members of the scheme opened over 100 phony clinics across New York which provided excessive treatment to purported crash victims who were allegedly paid up to $10,000 a month "to show up once a week just to sign referrals," the FBI said in a statement.
The lawyers involved in the scam advised the phony patients on what injuries to claim in order to boost the insurance payments.
The criminal scheme exploited New York’s "no-fault" auto accident law that guarantees up to $50,000 for car accident victims.
“Today’s charges expose a colossal criminal trifecta, as the fraud’s tentacles simultaneously reached into the medical system, the legal system, and the insurance system, pulling out cash to fund the defendants’ lavish lifestyles,” Manhattan U.S. Attorney Preet Bharara said in the statement.
Bharara called the scam “the largest single no-fault automobile insurance fraud ever charged.”

If found guilty, the defendants may face jail terms ranging from between 30 and 70 years.

SOURCES : RIA Novosti

Nayagaon (Punjab) land scam


The Punjab and Haryana High Court has given three-day time to the Punjab government to respond to whether the probe pertaining to alleged illegal properties owned by higher-ups in the periphery be handed over to a one-member commission of inquiry headed by a retired High Court judge.
The High Court had put the same query to the Punjab government earlier as well. But now the High Court has set a three days’ deadline. The development took place during the resumed hearing of a PIL arising out of a suo motu notice taken by the High Court.
As the matter came up before a division bench headed by acting Chief Justice M M Kumar, an affidavit filed by Punjab Chief Secretary Rakesh Singh was placed before it on Monday.
In the affidavit, the Chief Secretary submitted: “If a commission of inquiry is appointed, it would delay the proceedings which are already going on in various courts to retrieve the public land. In our opinion appointment of commission is not required.”
Seemingly dissatisfied with the response, the bench asked the counsel for the Punjab government to seek fresh instructions on setting up of the commission and inform the bench on Wednesday.
The bench, on the previous date of hearing, had made clear its opinion that only a commission could probe the matter independently. The court had also equated the gravity of the case with that of infamous 2G spectrum scam.
But before passing an order, the bench had asked the state government to respond to the query why a commission should not be constituted. The case will now come up for further hearing on April 25.
The matter was brought to the High Court’s notice by Nayagaon resident Kuldip Singh. Accusing a senior police functionary in a land-grab bid in Nayagaon, he had sought protection, demanding registration of an FIR and a CBI probe into the dealings. The inquiry was entrusted to ADGP (retired) Chander Shekhar after Justice Ranjit Singh of the High Court had taken cognisance of the matter.
On the last date of hearing, the Punjab government had been reprimanded by the High Court for its sheer inaction on getting government and forest land vacated from illegal possession.

Documents sought on mobile towers in residential areas
The Punjab and Haryana High Court on Monday directed the Chandigarh Administration and Central government to place on record the fresh notifications and guidelines issued by the Centre on removal of mobile towers from residential areas.
The directions were given during the resumed hearing of a bunch of petitions demanding removal of mobile towers from residential areas. A month ago, the High Court had directed the Chandigarh Administration to notify its policy on the issue of mobile towers in residential areas within a period of one month. A division bench had ordered that the UT must decide on the objections filed by the owners of mobile companies within a month and then notify its policy.
The policy would be moulded if the Chandigarh Administration decided to accept the objections filed by mobile companies. The companies had opposed the draft policy prepared by the administration in 2004 wherein the UT had decided not to allow any mobile companies to install their towers in residential areas.
The draft policy had made it clear that no mobile tower would be allowed to come up in a residential area. The policy had stated that mobile towers would be allowed to be installed only in commercial buildings which have completion certificates and their building plans. The policy read that the commercial buildings should have sewerage connections and be inspected by the Estate Office. The mobile company owners had also challenged some other provisions laid down by the UT in its draft policy.

Now PIL seeks removal of unauthorised tents in Mohali
After Chandigarh, it is time for removal of unauthorised tents in Mohali. For a public interest litigation (PIL) demanding removal of unauthorised tents pitched for security of judges and VVIPs, including bureaucrats, was filed in the High Court on Monday. A division bench issued notices on the PIL.
The petitioner, Rajinder Bains of Sector 48, has sought directions to Punjab, Greater Mohali Area Development Authority, Mohali Planning Board, Deputy Commissioner and Senior Superintendent of Police for the removal of tents. Directions were also sought for demolishing concrete structures in public parks, greenbelts and roadside berms being used illegally and in an unauthorised manner for the purpose of accommodating security personnel.
The petitioner added that the tents were being pitched for the security of the VVIPS, politicians, policemen and bureaucrats and were at 22 places in Mohali. In July 2009, the Punjab and Haryana High Court had taken suo motu cognisance of a news item published in an English daily which had highlighted the menace of unauthorised tents in Chandigarh.
Nearly three years later, the Chandigarh Administration claimed removal of all security tents pitched outside the houses of bureaucrats, politicians and other higher-ups on designated green belts. The assertion on removal of tents came just about 24 hours after the High Court directed the uprooting of portable canvas shelters pitched outside the judges’ houses.
The High Court in its previous order had ruled that “no one is above law, however so high he or she may be placed. Chandigarh Administration needs to be asked to perform its functions in accordance with law”.

SOURCES : financialexpress.com


Loan Scam

Now a days many banks and companies promising less interest on study loan but, many student in various part of the world especially in USA UK and INDIA, students are victim of study loan scam.

Signs of fraud


Signs of fraud :
  • Unsolicited phone calls or emails
  • overly friendly,persistent salespeople
  • Get rich quick opportunities that sound too good to be true
  • Prediction of guarantees of large returns
  • Promise of little or no risk
  • Pressure to make decision or send money right away
  • Lack of written information or squishy reference

Russian Swindler Mavrodi Arrested Over Debts

MOSCOW, March 15, 2014
Sergei Mavrodi, the notorious mastermind of the MMM pyramid scheme which robbed millions of Russians in the 1990s, will spend five days in jail after a failure to pay a 1,000 ruble ($33) fine for an uncpecified administrative offense.
A Moscow magistrate court ordered the arrest on Wednesday citing Mavrodi’s refusal to pay the fine for a long time.
According to Lifenews.ru, the fraudster told the court that he could not pay the fine because he is broke.
The collapse of Mavrodi's 1990s MMM pyramid scheme cost millions of Russians their life savings. The scam attracted between two and five million investors who lost around $1.5 billion when it collapsed. He served a four-and-a-half-year sentence and was released in May 2007.
In 2008, the courts released 18 million rubles ($610,000) belonging to Mavrodi. The money was shared among some of the investors. Court authorities also appropriated Mavrodi's rights for his book Temptation that he published the same year.
In 2011, Mavrodi unveiled his new scheme, which uses the online payment system, WebMoney, to allow investors to buy tickets that work like shares, but have no real value. He promised investors returns of 20-30 percent per month.
Russia’s Finance Ministry immediately called his new project “a cynical lie,” and WebMoney promised to keep an eye on his scheme.

SOURCES : RIA Novosti

"Homes for votes" gerrymandering scandal (1987–1989)

In the process of setting electoral districts, gerrymandering is a practice that attempts to establish a political advantage for a particular party or group by manipulating district boundaries to create partisan advantaged districts. The resulting district apportionment is known as a gerrymander  however, that word can also refer to the process. When used to allege that a given party is gaining disproportionate power, the term gerrymandering has negative connotations.
In addition to its use achieving desired electoral results for a particular party, gerrymandering may be used to help or hinder a particular demographic, such as a political, ethnic, racial, linguistic, religious, or class group, such as in U.S. federal voting district boundaries that produce a majority of constituents representative of African-American or other racial minorities, known as "majority-minority districts."


Gerrymandering is effective because of the wasted vote effect. By packing opposition voters into districts they will already win (increasing excess votes for winners) and by cracking the remainder among districts where they are moved into the minority (increasing votes for eventual losers), the number of wasted votes among the opposition can be maximized. Similarly, with supporters holding narrow margins in the unpacked districts, the number of wasted votes among supporters is minimized.
While the wasted vote effect is strongest when a party wins by narrow margins across multiple districts, gerrymandering narrow margins can be risky when voters are less predictable. To minimize the risk of demographic or political shifts swinging a district to the opposition, politicians can create more packed districts, leading to more comfortable margins in unpacked ones.

This controversial proposal has come to light just days after the District Auditor recommended in his preliminary report that 10 former councillors and officers (including one who is now a Tory MP) should be forced to pay back the pounds 21m their policies cost ratepayers, and be disqualified from standing as local councillors. That case involved an attempt to manipulate elections whereas the new proposal does not, but a common theme links the two: in both cases the council demonstrates a determined reluctance to accept responsibility for housing the poor people within its boundaries.
Last week's revelations about what the auditor, John Magill, variously described as the 'disgraceful', 'wilful', 'unlawful', 'unauthorised' and 'improper' decisions of Westminster Council, were based on events between 1986 and 1988. His report describes how Dame Shirley Porter, the heiress to the Tesco fortune who was then council leader, with her Conservative colleagues and some council officers, produced a two-track strategy to ensure that the Tories were returned to power in the marginal local authority.
One track dealt with the homeless, whom the Labour Party had organised and put on the electoral roll before the closely fought 1986 council election. They were regarded as a danger to the Conservatives, and a policy document drawn up for the local Tory leadership said in 1986 that the council must examine the costs of 'homeless / down and outs who are not our natural supporters'.
The other track involved house sales. The Conservatives decided that home ownership - at very low levels in central London - should be increased so that a natural and permanent Conservative majority could be manufactured in Westminster. This was to be achieved by setting aside 10,000 council homes for sale to Westminster residents or to people from outside. Vacant council homes - where tenants had died or moved on - were to be sold at a rate of 500 a year. Most of the 'designated' homes were in eight electoral wards with fragile Tory majorities. By promoting owner-occupation in the target wards, a paper for the Tory leadership explained in 1987, the politicians would encourage 'a pattern of tenure which is more likely to translate into Conservative votes'.
Gerrymandering, the word used by the auditor, is not quite the right term to describe this policy. Technically, the word means drawing electoral boun daries to the advantage of the governing party. Westminster was more ambitious: the council was not merely changing the boundaries it was attempting to change the electorate.
These policies, the council and the Conservative Party maintain, are all history now. Lady Porter left in 1992 and the council is under new management - although it is still Tory management.
But Labour politicians, housing associations and workers for the homeless claim that Lady Porter's successors are still shipping such people out of Westminster to leased accommodation in the East End of London and down-at-heel suburbs.
This would matter less to the rest of the country were Tory Westminster not secretly using its considerable influence with Conservative ministers, who have praised it to the skies over the past eight years, to press for a change in the law. A confidential document, Home lessness: a Shopping List for Early Change, shows that it is urging the Government to clamp down on the rights of the homeless to be put on a council's housing list. The council recommends that the Government should make it harder for young single mothers, battered wives, immigrants and the mentally ill to obtain council homes.
Later this month, Sir George Young, the Housing Minister, whose civil servants are being lobbied by Westminster, will announce a review of council housing policy. It is likely that he will reflect some of Westminster's hardline views. In one of the 'back to basics' speeches at the Tory Party conference last October, Young indicated that he wanted to restrict the rights of single mothers to priority on council house waiting lists.
Gavin Millar, the Labour spokesman on housing on Westminster Council, said: 'What we are seeing is a battle to escape from responsibility for the homeless. First, the Conservatives tried to ship them out . . . now that policy has failed, they are trying to change the definition of who is homeless and has the right to be cared for by the council. They want the centre of London to be like the centre of New York - a British Manhattan where the rich can walk without being troubled by conscience and the poor are safely tucked away in their ghettos.'
TO MOST people, Westminster is merely the Houses of Parliament, Buckingham Palace and West End shops. But for all its apparent glamour, the area has its fair share of metropolitan poverty. Westminster pushes north into Kilburn, the traditional London home for the working-class Irish, and west into Bayswater, where Peter Rachman had his slum housing empire in the 1950s.
As offices and shops moved into the richer part of Westminster and wealthy homeowners moved out to the suburbs, the Conservatives found that they were left with an electorate overwhelmingly comprised of tenants. In 1981, just 21 per cent of residents owned their own home compared to 65 per cent nationally. In 1986 local elections, the Tories came within a handful of votes of losing control of the council. Homeless ness was, and remains, high in central London, where the council had to cope with people coming from all over the country looking for work.
The Magill report shows that the council leadership's response to this unfavourable demographic trend combined two themes: a passionate belief in privatisation and an attitude to the poor which might most charitably be described as high-handed.
On 2 September 1986, a note of a meeting of senior politicians shows that the blunt question was asked: 'How can we get them (the homeless) out of Westminster City Council?'
A few days later, Porter sent senior Tories a confidential paper which included the warning that 'we are spending an extra pounds 1.52m this year' on meeting statutory responsibilities to house the homeless. The paper advised that the council should 'test the law to its limits', and move the homeless to 'property outside Westminster'. The aim was to encourage 'gentrification' within the area. In this case, gentrification was defined as 'ensuring that the right people live in the right areas'. The right areas were to be identified 'on the basis of electoral trends and results'.
Porter wrote to colleagues: 'When you've read the documents . . . it would be helpful if you swallow them in good spy fashion otherwise they might self-destruct]]' Her instructions were apparently not obeyed.
By 18 September, a homeless action plan had been drawn up and approved by Porter and six other Tory councillors. The policy was summarised by officers as 'mean and nasty'. In 1987 the two elements of the strategy were in place. Westminster would not just sell council houses to tenants; it would 'gentrify' the key marginal wards by selling empty properties to anyone with a connection with Westminster who wanted to buy. The homeless and priority families on the housing list, who might normally be expected to take the homes, were to be shunted out of the area instead. A council draft paper proclaimed that targets were to 'stop housing Westminster homeless in Westminster with immediate effect (and) to move all homeless out of Westminster starting with key wards by end 1988'.
The homeless were treated as meanly and nastily as Porter and the rest intended. Some went out to Essex and the London suburbs; others were left in hostels and on the street. The consequence was a steep rise in the number of people Westminster could not house but who were entitled to a home. In the five years from 1987 to 1992 the number rose from 210 to 871.
When it was asked to account for this, Westminster claimed that it faced special burdens because the council is in central London. But Westminster's own analysis of housing applicants showed that only a quarter were immigrants, refugees or people from other parts of Britain. Most had been thrown out of asylums in the community care programme or thrown out of their homes by friends, relatives and landlords. They were not scroungers who had come to London hoping that the streets were paved with gold, but ordinary people looking for a council to provide them with housing.
Porter said from California last week that she would return in February and clear her name. She denied that her conduct was illegal or improper. She said of Magill's report: 'I have received legal advice to the effect that his view is neither correct in law nor in fact.'
The central Porter policy - the targeting of key wards - was exposed and the auditor's investigation was instigated when Patricia Kirwan, the former Conservative chairwoman of Westminster's housing committee, admitted to the BBC in 1989 that gerrymandering was taking place. The plan was 'to increase the number of upwardly mobile Conservative-type voters in specific key areas to ensure the vote went up', she told Panorama.
WHILE the Magill report has exposed the policies of the 1980s to public scrutiny and condemnation, local Labour politicians in Westminster allege that the spirit of those policies lives on, because the Conservatives are still failing to build cheap homes for rent in Westminster and are continuing to move the poor out.
Council figures support the opposition claim. They show that in the past year 524 homeless people were sent to flats outside the area. In Westminster itself, just 147 cheap, public homes for rent were built.
Meanwhile, opportunities to force developers to build affordable homes in Westminster have been missed. The Government encourages councils to insist that developers provide some socially useful buildings - a 'planning gain' in local authority jargon - when they are given permission to develop a profitable site. But even though Westminster has big developments under way on the sites of two former hospitals and in the Paddington basin near the railway station, housing activists allege that opportunities to construct new homes have been ignored.
'It is not even willing to go along with Government policies,' said the chairman of one housing association. 'Westminster still has the view that planning gain is a nasty socialist policy.'
The present Tory leadership strongly denies that there is anything wrong in this. They are not gerrymandering but making the best use of limited resources by buying homes outside Westminster that are better value for money.
But there is a growing recognition that these policies are not sustainable. Westminster, like councils across the country, is running into the problems created by the council house sales programme which proved such a great vote-winner for the Conservatives after the 1979 general election. Councils are allowed to use only a small percentage of the receipts from the sale of houses to build new homes. As housing associations have been unable to meet the demand left by the collapse in council house building, there is nowhere for the destitute to go apart from bed-and-breakfast hostels or shop doorways.
Worse still, Westminster can no longer offer tax relief to encourage the developement of leasehold properties for its homeless in other parts of London. This is because subsidies under the Government's Business Expansion Scheme ceased to be available for this purpose at the end of 1993. As a result, Westminster has about 850 homeless families in temporary accommodation at present and 1,000 on a transfer list waiting to move from bedsits.
Rather than seeking new ways to build or find homes, the council's response to this crisis has been to ask the Government to reduce its obligations to house homeless people. The 'shopping list' it has sent to ministers calls for Whitehall to make a string of legal changes.
Pensioners should not be automatically regarded as having a 'priority need' for a home. 'Old age should not, in itself, establish a priority need,' the council document says. Councils should not be forced to put people who seem 'vulnerable' - often the mentally ill and battered wives - in hostels until their cases have been assessed and their vulnerability established to the satisfaction of council officers.
Westminster also wants to make it harder for homeless immigrants to claim a house. Councils should be able to consider whether an applicant has access to accommodation abroad and has deliberately made himself homeless, it said.
Meanwhile, children who are thrown out of their homes by their parents, mainly pregnant teenagers, should not automatically be given priority on waiting lists but should be compelled to go to the courts and demand re-entry to the family home, regardless of whether they want to or not.
THE ULTIMATE irony of the policy of the 1980s, and perhaps the lesson for today's council, is that many of the people who were supposed to benefit have turned into bitter enemies of Tory Westminster. Alan Duncan, Teresa Gorman and other Tory MPs have done well buying smart town houses, but for most of the supposed beneficiaries - ordinary people who bought modest flats - the experience has been a disaster.
About 800 have formed a pressure group and are demanding that the council buys their homes back. Mark Green, 35, a medical researcher, explains why. He paid pounds 45,000 for a flat on the 15th floor of a block on the Warwick estate in 1989. The flat was valued at pounds 62,000, but because he was a Westminster resident he got a pounds 17,000 discount from a council that was desperate to sell. Now estate agents have told him that his home is effectively worthless.
Green makes the key point that he had no choice but to buy. 'I and many others would have been happy to rent a council flat. But as they were all being sold off we would never have been able to rent in a million years.' He was assured that the whole estate had been designated for sale and that he would soon find himself surrounded by owner-occupiers rather than 'problem families'.
But within weeks of moving in, the council quietly dropped its plans to sell more flats in the block. It was only three years later, when a neighbour tried to move, that owner-occupiers discovered estate agents and building societies would have nothing to do with the properties.
The other victims are of course the homeless, who wanted to find somewhere to live in Westminster. Maxine Sandford was born and brought up in the area. She and her two young children have now been dumped by Westminster two hours away in a leased flat in the East End of London, where they know no one.
'They moved me away from my family and friends without any regard for my, or my children's, health and happiness. It's miles from anywhere and very hard for anyone to visit me. It's become a nightmare, I want to be moved back to Westminster,' she said.

SOURCES : independent.co.uk

Fight for corruption free India


Pennsylvania Treasurer William L. Mathues (R) was convicted in connection to the Pennsylvania State Capitol graft scandal.(1908)

Pennsylvania state capital West side with grand staircase
William L. Mathues (March 24, 1862 – December 30, 1908) was a former Treasurer of the U.S. state of Pennsylvania. Mathues was one of the people convicted in connection to the Pennsylvania State Capitol graft scandal.He died of pneumonia in 1908 before he was supposed to go to prison.

SOURCES : Wikipedia

Fraud Case Opened against MMM-2011 Ponzi Scheme

7 June, 2012: A criminal case has been opened into the MMM-2011 Ponzi scheme on fraud charges, the Russian Prosecutor General’s Office said on Thursday.
The Federal Antimonopoly Service has come to the conclusion that “the MMM-2011 scheme is a financial pyramid,” the PGO said in a statement.
MMM-2011 (the three letters stand for "We Can Do a Lot" in Russia), founded by Sergei Mavrodi, uses the WebMoney online payment system to allow investors to buy tickets which work like shares, but have no real value. The project's mastermind has promised investors returns of 20-30 percent per month.
Lithuanian law enforcement agencies have halted operations of the MMM-2011 pyramid scheme after finding its activities violate laws, the local Delfi news portal reported late on Wednesday quoting law enforcement officials.
Amid rumors about the collapse of MMM-2011, Mavrodi announced last week he would create the MMM-2012.
A former mathematician, Mavrodi was released from prison in 2007 after serving a sentence for offenses relating to the collapse of the original MMM. He described the new project as a “financial social network.”
While his 1994 scheme used an aggressive TV and radio advertising campaign to attract investors, the new project relies solely on the Internet, a move which many see as a bid to attract Russia’s technologically-savvy youth.
Mavrodi’s 1994 swindle, which came to be regarded as a symbol of the lawlessness of the chaotic 1990s in Russia, was one of the largest among hundreds of other such schemes in that era. The pyramid schemes took advantage of the ignorance of a nation still learning the basics of a new capitalist system. Ponzi schemes became so commonplace that their prices were quoted on the front pages of newspapers.
According to estimates, the MMM scam attracted between two and five million investors, including a number of high-profile celebrities, who lost around $1.5 billion when it collapsed.
SOURCES: RIA Novosti

Belekeri port scam

The Belekeri port scam relates to 3.5 million tons of confiscated iron ore that was exported illegally from Belekeri port near Karwar in Karnataka. After Deputy Conservator of Forests R. Gokul seized the ore and the high court refused to permit it to be exported, a large part of it was surreptitiously exported from the port. After persistent protests and public pressure, Karnataka Chief Minister Yeddyurappa, who was balancing political considerations with control of corruption, admitted to an illegal iron-ore export racket at Belekeri Port involving 35 lakh metric tonnes of iron ore.[It is said that the scam was worth an estimated 60,000 crore rupees (US$12 billion).
This iron ore from the Bellary region is alleged to have been illegally mined after paying a minuscule royalty to the government. The major irregularities involve mines in Bellary, including those of Obulapuram Mining Company owned by G. Karunakara Reddy and G. Janardhana Reddy, who were ministers in the Government of Karnataka during B. S. Yeddyurappa's tenure. A report constituted by the LokAyukta uncovered major violations and systemic corruption in mining in Bellary, including in the allowed geography, encroachment of forest land, massive underpayment of state mining royalties relative to the market price of iron ore and systematic starvation of government mining entities.This report was finalized and prepared with inputs from the Income Tax Department's Commissionerate of Central Circle.
Justice N. Santosh Hegde resigned from the Lokayukta position on 23 June 2010 after an officer (Deputy Conservator of Forests R Gokul) was suspended by order of minister J. Krishna Palemar and he felt powerless to help. He expressed inability to be effective in his anti-corruption mandate owing to a non-cooperative Government of Karnataka. Amid media speculation that the ports minister Krishna Palemar had recommended Gokul's suspension on behalf of some politicians with business interests, Palemar defended his recommendation to suspend Gokul, saying Gokul had failed to attend a meeting, and "this raised suspicions that he too might have had a role to play in this particular incident. Because of this I recommend that he be placed under suspension".
Hegde's resignation sought to underline the helplessness of the advisory post of the Lokayukta in such situations.The resignation has brought considerable public attention on the scam, whose existence the government has also been forced to admit.

Related road damage, accidents & loss of lives

The lack of effective regulation in the mining and transport of iron ore has adversely impacted road safety in addition to the loss of revenue and environmental denudation due to illegal mining. Overloaded trucks carrying ore have caused hundreds of fatal accidents on the roadways leading to ports such as Belekeri. As many as 114 accidents were reported in 2007, and 174 in 2008.There are also reports of severe damage to the roads in Karnataka, including national highways NH-17, NH-48 and NH-63, near Shimoga.

 Lokayukta report of july 2011

 This report was finalized and prepared with inputs from the Income Tax Department's Commissionerate of Central Circle.The chapter 2 of the Lokayukta Report on illegal mining in Karnataka details the method in which the Belekeri Port was the anchor point of export of illegally mined iron ore. The report mentions the involvement of private companies – Shree Mallikarjun Shipping Pvt Ltd (SMSPL), Adani Enterprises Ltd, Salgaonkar Mining Industries Pvt Ltd, Dream Logistics Company India Pvt.Ltd and Raj Mahal Silks in large scale illegal exports of ore.

SOURCES :

  • Wikipedia


Bellary mining scam

Mining scam in India (colloquially Indian mining scam) is a series of widespread scams in various ore-rich states of India, and has generated controversy, which spans encroachment of forest areas, underpayment of government royalties, conflict with tribals regarding land-rights. The spill-over of the effects of legal mining into problems such as Naxalism and the distortion of Indian democracy by mixed political and mining interests, has gained international attention.
The latest scam that has come out is the Coal Mining Scam in which Government has had a presumable conservative loss Rs1.86 trillion (short scale), due to the delayed implementation of competitive bidding process for allotment of coal blocks, says the CAG.

Illegal Iron ore mining in Karnataka

Rising global iron-ore prices driven by Chinese demand brought focus to the iron ore rich Bellary region of Karnataka. This iron ore is alleged to have been illegally mined after paying a minuscule royalty to the government. The major regularities involve mines in Bellary, including those of Obulapuram Mining Company owned by G. Karunakara Reddy and G. Janardhana Reddy who were ministers in the Government of Karnataka at the time.

Investigation by Income Tax Department

Income tax sleuths unearthed under-invoicing and tax evasion of around Rs 86 crore by the Obulapuram Mining Company (OMC), run by Karnataka's Reddy brothers and also their trusted confidante and state health minister B Sriramulu. A team headed by the Additional Commissioner of Income Tax raided the premises of over 10 people. The team consisting of around 150 officials and companies of Central Reserve Police Force swooped down in the wee hours and conducted raids until late in the night. Income tax officials described it as one of the biggest IT raids in the recent history. The team of officers under the Directorate General of Income Tax Investigation after getting clues to tax evasion by OMC B N Mohan IRS, Deputy Commissioner of Income Tax, Dr Sibichen K Mathew IRS, Additional Commissioner of Income Tax and G M Belagali IRS (Commissioner) of Bangalore (Commissionerate) Central circle were assigned to work on the case. They found that the OMC had entered into a MoU with a one-dollar company of Singapore to camouflage the company's income suppression leading to money laundering and tax evasion. This report was billed as the best investigation of the year and recorded in the book Let us Share by the Finance Ministry. This report was the basis of the Central Bureau of Investigation investigation and the Santhosh Hegde Report.

Interim Lokayukta report of December 2008

A report published by the LokAyukta uncovered major violations and systemic corruption in mining in Bellary, including in the allowed geography, encroachment of forest land, massive underpayment of state mining royalties relative to the market price of iron ore and systematic starvation of government mining entities. Justice N. Santosh Hegde resigned from the Lokayukta position on 23 June 2010 citing inability to be effective in his anti-corruption mandate owing to a non-cooperative Government of Karnataka. In January 2010 Mr Kharge questioned the governoment about transfer of Dileepkumar PCCF who refused to sign the report but Government brought S Nagaraja as PCCF who signed the report.

Collusion of officials and politicians in permitting illegal mining

Environment Ministry officials state that the 49.97 lakh tonnes of sand mining reported in the Indian Bureau of Mines Year Book for 2011 is a gross underestimate. The guidelines under the Central and the state enactments, call for a sketch of the mining area when a mining lease is applied for. It was found by the Lokayukta that sometimes the actual mining areas are not related to the sketch given with the applications without officials crosschecking them. Further mining applicants falsely claim a prohibited forest area as a revenue area. Finally the actual area of the mine is much bigger than the claimed area. The Indian Bureau of Mines rules which control the type of mining, allow a maximum mining depth six metres to prevent environmental degradation. But miners have flouted this rule to over-extract iron-ore. For example, if they are allowed to take 100 metric tones, mines take 1,000 metric tonnes. Officials at road check posts reportedly collude in a massive under-counting of lorries and trucks transporting the iron-ore from the Bellary mines to the ports. News reports suggest that only 200 trucks are reported as against 4000 plying everyday.

Underpayment of royalties to state

There is a huge difference in the market price of the ore and the royalty specified by the government as well as faulty measurement mechanisms of amount of ore extracted. It was found that 3.5 million tonnes of ore were illegally exported without paying a rupee of royalty to the exchequer, resulting in a loss of about Rs160.85 billion.With ore prices of USD 100–120 per ton, 3.5 Million tonnes adds up to about 350–4000 Million USD. There are proposals to link the royalties to the market price of iron-ore. There is also a proposal by the ministry of Environment and Forests to levy a tax.

Environmental damage

According to the Lok Ayukta Report,there have been severe ecological changes due to illegal mining. Certain species of animals, like the sloth bear, that in the Bellary region have disappeared. Medicinal plants from the area do not grow any more. The entire system of rain has changed in the district of Bellary. It is reported that the entire area surrounding the mining area is denuded of greenery and has no agricultural activity.

SOURCES :
  • Deccan Chronicle News

Tatra scam – INR7.5 billion

The Indian Army uses Tatra all-terrain vehicles to mount guided missile launchers and haul heavy artillery. It also uses these vehicles to transport personnel, supplies, tanks, ammunition, bailey bridges, and the like.
Top officials of BEML Limited, a Bangalore-based company, and the defence ministry have siphoned off at least Rs750 crore in bribes and commissions over the past 14 years in the purchase of components for Tatra trucks, backbone of the army’s artillery and transportation wings.

The CBI is gearing up to finalise the chargesheet in the Tatra truck procurement scam and tighten noose around former BEML chief VRS Natarajan. The agency is likely to arrest Natarajan, who has been named in five cases other than the one for supply of Tatra all-terrain vehicles to the defence PSU. Natarajan is also a named accused in the cases relating to the recruitment scam in BEML and bogus invoicing for mining areas for testing of earthmoving equipment, sources said. He is alleged to have raised invoices for mining areas which were not permitted for such activities as per the environmental laws.

The CBI team from Delhi had questioned Natarajan and another former BEML CMD TVS Shastry in Bangalore last week and received documents relating to the relevant period. Natarajan had not only inked but also perpetuated the contract of UK-based Tatra Sipox with BEML for supply of the all terrain vehicles in contravention of the defence procurement rules that stipulate acquisitions only from original equipment manufacturers (OEMs). Tatra Sipox was allegedly not an OEM. The OEM of  the iconic trucks is Tatra a.S., a Czech firm. He is also suspected to have downgraded the General Staff Qualitative Requirements to suit Tatra Sipox.
BEML procured the Tatra trucks for supply to the Army. Apart from other violations allegedly weaved into the contract for the supply of the vehicles, the defence PSU also allegedly did not carry out the indigenisation of the specialised trucks despite investments for the same by the BEML.
During earlier rounds of questioning Natarajan was also confronted with Vectra Group boss Ravi Rishi, a named accused in the case for procurement the trucks. Natarajan had allegedly renewed the supply contract with Tatra Sipox in 2003 much before it was required in 2006 and despite lapses being pointed out in the procurement of the vehicles by the Comptroller and Auditor General in a report in 2000.
In 1997, Tatra Sipox UK had signed the truck supply deal with BEML and Natarajan was instrumental for this. As many as 500 trucks (that cost the exchequer Rs 80 lakh apiece) are lying unused for want of spare parts, 3000 completely knocked down kits (CKD) were procured without the necessary gearbox leading to unnecessary piling up of unwanted inventory. However, the payments have been fully accounted for in the BEML books, CBI sources added.

SOURCES :
  • Daily Pioneer

Stop Corruption Or Quit India


We must take an oath to put restriction of taking and giving bribe. so that we can stop corruption to an extend, before it go more worse and kill economy of India.

Battle Against Corruption


You can stop corruption (image)


LIC housing loan scam

The 2010 fake housing loan in India was uncovered by the Central Bureau of Investigation (CBI) in India. CBI arrested eight top-ranking officials of public sector banks and financial institutions, including the LIC Housing Finance CEO Ramchandran Nair, in connection with the scam.

CBI investigations

 CBI alleged that the officers of various public sector banks and financial institutions received bribes from a private financial services company, which acted as a mediator for corporate loans and other facilities from financial institutions. The bank officials sanctioned large-scale corporate loans to realty developers, overriding mandatory conditions for such approvals along with other irregularities.
The Central Bureau of investigation arrested number of high official from the several financial institutes in India in connection with the housing scam in November 24, 2010. Smith (2010) stated that findings are shocking where the head officers of several banks and financial institutes are involved in corporate corruption. Precisely, the banks and financial officials were from the public sectors including LIC, Bank of India, Central Bank of India and Punjab National Bank. However, ) stated that since the matter was related to the erosion of funds from the LIC housing and Finance Limited, event was named as the LIC housing and Finance Scandal. Lamont (2010) cited that the officers from the high rank including the secretary of LIC Investment, general managers, directors and deputy managers of banks were involved in taking out the funds from LIC in appropriate and unethical way. Smith (2010) said that these officials were acting as the middleman to provide the funds to the main parties and in return they were having hefty amount of funds from the real investors, insurers and other consumers. Smith (2010) regarded this as the distortion of the corporate governance system where the business ethics were neglected to sustain the core business activities of the public sector banking firm. Meanwhile, Economic Times stated that the officials were charged with the exploiting of funds, looting, corrupting corporate loan process and manipulating and overriding with the regulations of the LIC Housing and Finance Limited in regard to the approvals and other rules and regulations. Nonetheless, The loans provided through this manner were estimated to be worth of 85 Billion Dollars, comes as the biggest scandal in the Housing Finance in Asia However, the stock price took a sharp dip soon after the event. Apparently, LICHF had a good run till September 2010 when it reached Rs.299 and the growth rate undoubtedly, received the appreciation by the investors and other shareholders. The stock recorded no significant changes thereafter but the appearance of corporate scandal shook the stock price chart and the price dip to Rupees 150 by the end of year 2010. At present the stock price is stands at around rupees 190 and gaining its momentum over a period of time but however, Lamont (2010) felt that the combination of factors that happened in the last quarter of FY10 were accountable for the sharp decline in the LIC Housing and Finance Share price. Reuters stated that LIC Housing and Finance is looking forward to raise the capital to the tune of Rupees 25000 Crores in 2011-12 through debt. Eventually, the technical experts believed that company is developing its core competencies and capabilities and undoubtedly, investors would revive the stock price and current Market changes and company’s development will be seen through the price momentum. However, experts believed that the Housing and Finance Scandals by the top officials in LIC and other banking institutes will always stand to harm the future potential of such companies but however, the future and the endless opportunities lies in the hand of ultimate investors. Eventually, Online newspaper, Rediff quoted as saying that most of the brokers are taking up the stock of LICHF after the scam as related to the current project being performed by the company. Namely, IIFL, Aditya Birla, IL&FS are impressed by the current progress by the company and building up the stock ay higher rate. However, Reuters stated that the Financial Budget introduced by the Indian Planning Commission had slightly adverse effects on the stock of banking, insurance, mortgages and other related sector in the industries. However, the company has been quoted as saying that they would include the margin between 2.8 to 3% in relation to the rising interest rates and their effects on the share price. However, In response the scam, the Reserve Bank of India and other regulatory and financial bodies attempted to reform the housing finance sector by making several supervision and security measures in this regard. Eventually, the corporate scam destroyed the interest and confidence of investors and thus, the monetary and regulatory authorities must execute their task in relation to safeguarding the interests of investors. Apparently, Smith (2010) stated that the Central Bureau of Investigation exposed the stock price dip to 18% of the prevailing market rate after the scam and other banks who were involved saw a decline between 5 to 15% during the time. Hence, it was anticipated that investors believed in the core values and company’s relation with the investors and the stock changes occur in the short span of time however, the stock is futuristic for the long term.
CBI's Economic Offences Wing (EOW) raided offices of the public sector banks and LIC Housing Finance in six cities (Mumbai, Delhi, Chennai, Jaipur, Kolkata and Jalandhar), to recover incriminating documents.
According to CBI, the companies to which the loans in question were given include:
  • Lavasa Corp., a unit of Hindustan Construction Co.
  • Oberoi Realty Ltd.
  • Ashapura Minechem Ltd.
  • Suzlon Energy Ltd.
  • DB Realty Ltd., a part of the Dynamix Balwas Group
  • Emaar MGF Land Ltd.
  • Mantri Realty
  • Kumar Developers Ltd.
The CBI EOW also suspected that the companies may have inflated their assets value and balance sheets in order to make themselves eligible for the loans.
According to CBI, an employee of the financial services firm had expressed his willingness to turn witness in the case

Reactions

Most firms, including BGR Energy and Oberoi Realty denied any role in the scam.
The scam was discovered shortly after the 2010 Commonwealth Games corruption controversy and the Adarsh Housing Society Mumbai scam. The investors were rattled as news of the arrests broke in Mumbai. The share of the LIC Housing Finance, Central Bank of India, Punjab National Bank, Bank of India as well as other banking and real-estate stock declined.
The Union finance ministry initially claimed that the case was a bribery incident, and not a large-scale scam. The CBI officials had indicated that the size of the scandal could be worth over Rs 1,000 crore, but the finance ministry officials claimed that the magnitude of the scandal was too insignificant to have an impact on the Indian financial sector.
The income-tax (IT) department decided to investigate the books of those involved in the scam, after receiving primary reports from CBI. However, many political analysts believe innocent bankers were implicated in this falsely created scam to defuse attention of the common man against the much larger and serious scams done by the ruling Indian government, notably of corrupt politicians like CWG minister Suresh Kalmadi and ex-telecom minister A Raja.

SOURCES :  
  •  Wikipedia
  • PTI