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Open Access
Article
Publication date: 8 April 2020

David Seth Jones

The aim of the paper is to examine the various aspects of the 1MDB scandal including the extent and types of corruption that occurred and the action taken to deal with…

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Abstract

Purpose

The aim of the paper is to examine the various aspects of the 1MDB scandal including the extent and types of corruption that occurred and the action taken to deal with them. In doing this, the paper seeks to identify the reasons for the scandal and the lessons that can be learnt to avoid such a scandal in Malaysia and elsewhere in the future.

Design/methodology/approach

The research for the paper is based on evidence from court hearings, reports of watchdog and regulatory agencies, media reports, and various articles and books written about 1MDB.

Findings

The paper shows that most of the scandal involved embezzlement, bribery, false declarations and bond mispricing relating to extensive borrowing by 1MDB, and entailed a global network of shell companies and individuals through which the illicit money was passed. It also shows weak governance in 1MDB, poor internal controls within banks, the failure of watchdog and enforcement bodies to take the necessary action partly due to political control over them, and overall the lack of political will to deal with the scandal.

Originality/value

The paper builds on the findings of other papers and books written on the 1MDB scandal. It does this by linking the corruption to the borrowings of 1MDB, the international network of money-laundering and bribery through which illicit money flowed, and the poor internal controls in the organisation. It also builds on previous research by highlighting the failure of banks to identify money-laundering and of watchdog and enforcement bodies to deal with the corruption. A further value of the paper is to identify the lessons that can be learnt about combatting corruption on such a scale.

Details

Public Administration and Policy, vol. 23 no. 1
Type: Research Article
ISSN: 1727-2645

Keywords

Article
Publication date: 4 June 2020

Fabian Maximilian Johannes Teichmann and Marie-Christin Falker

This case study highlights why and how the Swiss banking sector played a crucial role in the 1Malaysia Development Berhad (1MDB) corruption scandal. In particular, the…

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Abstract

Purpose

This case study highlights why and how the Swiss banking sector played a crucial role in the 1Malaysia Development Berhad (1MDB) corruption scandal. In particular, the paper illustrates how different actors in the Swiss financial sector neglected compliance guidelines and due diligence, thus effectively facilitating the laundering of misappropriated 1MDB funds. The purpose of this paper is to give bankers and compliance officers an overview of the methods money launderers use to circumvent compliance measures so that the Swiss banking sector can be protected more effectively from abuse. In addition, there is discussion whether current regulations, including banking secrecy, should be amended.

Design/methodology/approach

This paper used a content analysis methodological approach to collect data from media sources. Qualitative methods were used to analyze these sources.

Findings

The findings reveal that the Swiss banking sector played a major role in facilitating the siphoning and subsequent laundering of 1MDB funds by neglecting due diligence obligations.

Practical implications

This paper advocates a more consequential implementation of the existing anti-money laundering and corruption regulations.

Social implications

A reworking of the 1MDB scandal should be of interest to compliance professionals in the banking sector and citizens that have been negatively affected or are concerned by the involved high-level corruption.

Originality/value

This paper is the first of its kind to study the role of the Swiss banking sector in the 1MDB scandal.

Article
Publication date: 27 January 2020

Fabian Maximilian Teichmann and Marie-Christin Falker

The purpose of this paper is to illustrate how illegally obtained funds from Austria, Germany, Liechtenstein and Switzerland are laundered through the banking system in Dubai.

Abstract

Purpose

The purpose of this paper is to illustrate how illegally obtained funds from Austria, Germany, Liechtenstein and Switzerland are laundered through the banking system in Dubai.

Design/methodology/approach

The study is conducted using a qualitative content analysis of 60 semi-structured expert interviews with both criminals and money laundering prevention experts, and a quantitative survey of 200 financial sector compliance officers.

Findings

Some banks in Dubai are highly suitable for all stages of the money laundering process. However, although certain banks have weak compliance mechanisms, others act in an exemplary manner.

Research limitations/implications

The qualitative findings are based on semi-structured interviews and are limited to the 60 interviewees’ perspectives.

Practical implications

Identification of gaps in anti-money laundering mechanisms provides compliance officers, law enforcement agencies and legislators with valuable insights into how money laundering criminals operate.

Originality/value

The existing literature focuses mainly on organizations and the methods they use to combat money laundering. This paper outlines how money launderers operate to avoid detection. Authentic experiences are illustrated. The reader is provided with valuable insights into the minds of money launderers. Both lawful and criminal perspectives are taken into account.

Details

Journal of Financial Regulation and Compliance, vol. 28 no. 3
Type: Research Article
ISSN: 1358-1988

Keywords

Book part
Publication date: 11 October 2017

Augustine Pang, Ratna Damayanti and Eugene Yong-Sheng Woon

In 2015, Malaysia’s investment vehicle, 1Malaysia Development Berhad (1MDB), came under international scrutiny after it amassed a debt of US$11 billion (10.3 billion…

Abstract

In 2015, Malaysia’s investment vehicle, 1Malaysia Development Berhad (1MDB), came under international scrutiny after it amassed a debt of US$11 billion (10.3 billion) (Wright & Clark, 2015), which it had difficulty repaying. More disturbingly, investigators found that US$700 million (658 million) was transferred into the personal bank account of Malaysia’s prime minister, Najib Razak, founder and chairman of 1MDB’s advisory board (Wright & Clark, 2015). Najib was also accused of embezzling state money (Reuters, 2015) and damaging the image of the country (“Najib tried to bribe me”, 2015). This chapter aims to examine the strategies used by the Malaysian prime minister to repair his image in the 1MDB scandal, the effectiveness of these strategies, and how these impacted Malaysia’s public diplomacy efforts in restoring the country’s image and reputation. Findings showed that the prime minister denied wrongdoing, and simultaneously bolstered his position and promised to turn 1MDB around. In contrast to the current explication of Benoit and Pang’s (2008) image repair strategies, Najib’s way of attacking the accusers sheds light into how image repair strategies may be operationalized in the Asian context. A new image repair strategy – diversion – is proposed to be added to the existing framework.

Details

How Strategic Communication Shapes Value and Innovation in Society
Type: Book
ISBN: 978-1-78714-716-4

Keywords

Open Access
Article
Publication date: 7 July 2022

David Seth Jones

The aim of the paper is to analyse the prevalence of corruption in Malaysia since 2004 in relation to political leadership, implementation of anti-corruption measures and…

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Abstract

Purpose

The aim of the paper is to analyse the prevalence of corruption in Malaysia since 2004 in relation to political leadership, implementation of anti-corruption measures and the political and business culture based on money politics.

Design/methodology/approach

The paper draws from the information and data provided by the Malaysian Anti-Corruption Commission, the Malaysian government, international organisations, media reports, and academic papers.

Findings

The paper analyses the perceived extent of corruption in Malaysia by examining how successive governments have dealt with the problem through a wide range of measures. Corruption remains widespread because of ineffective implementation, a culture of money politics based on mutually beneficial crony associations between political actors and business leaders, political interference to frustrate enforcement against corruption offenders, especially prominent personalities, and the mixed impact of corruption prevention measures. The paper concludes that the political and business culture and the nature of political leadership have eroded the political will to combat grand corruption in Malaysia.

Originality/value

This paper builds on previous research on corruption in Malaysia and highlights the combined negative impact of political leadership and a business and political culture that tolerates and espouses corruption, especially through money politics, and the consequent weak political will for tackling grand corruption.

Details

Public Administration and Policy, vol. 25 no. 2
Type: Research Article
ISSN: 1727-2645

Keywords

Open Access
Article
Publication date: 29 May 2020

Jon S.T. Quah

The purpose of this paper is to compare and evaluate how the governments in six Asian countries have dealt with selected grand corruption scandals.

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Abstract

Purpose

The purpose of this paper is to compare and evaluate how the governments in six Asian countries have dealt with selected grand corruption scandals.

Design/methodology/approach

This paper is based on the comparative analysis of 11 corruption scandals examined in the six articles on India, Japan, Macau, Malaysia, Philippines and Singapore included in this special issue of Public Administration and Policy.

Findings

The responses of the governments in the six countries depend on the strength of their political will in combating corruption. The responses of the governments in Malaysia, Philippines, India and Japan reflect their weak political will in combating corruption and lack of accountability of the corrupt offenders. By contrast, the strong political will of the governments in Singapore and Macau is reflected in the investigation and punishment of the corrupt offenders without any cover-up of the scandals.

Originality/value

The findings would be of interest to scholars, policymakers and anti-corruption practitioners and activists.

Details

Public Administration and Policy, vol. 23 no. 1
Type: Research Article
ISSN: 1727-2645

Keywords

Content available
Article
Publication date: 10 January 2020

Javier Daniel Ho and Paul Bernal

The purpose of this paper is to fit a logit model for dry bulkers transporting grains through the Panama Canal versus alternative routes destined to East Asia, originating…

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Abstract

Purpose

The purpose of this paper is to fit a logit model for dry bulkers transporting grains through the Panama Canal versus alternative routes destined to East Asia, originating on the US Gulf and East Coast. This is with the purpose of better understanding the attributes.

Design/methodology/approach

In this paper, grain transits both through the Panama Canal and alternative routes, which are examined, and a logit model is developed to explain the route decision from a carrier/vessel operator point of view.

Findings

Transit draft is the most important attribute in the route decision process for grains according to this study. Also, Panamax bulkers are the preferred vessel size into China, especially through the Cape of Good Hope route, impacting Panama Canal’s market share for grains.

Research limitations/implications

This research used only a full year of grain traffic data approximating fiscal year 2018 (October 1, 2017 to September 30, 2018). Data will come mostly from the Panama Canal transit data and observations using IHS’s Market Intelligence Network (MINT).

Originality/value

This paper is highly dependent on visual observations of grains vessels through alternative routes using AIS data from MINT software.

Details

Maritime Business Review, vol. 5 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Article
Publication date: 6 August 2020

Wenbo Zhu, Yongfu Chen, Zhihao Zheng, Jing Zhao, Guojing Li and Wei Si

China has experienced a fast economic growth and shown a significant rise in income inequality in the past decades. During the same period, fluid milk consumption in urban…

Abstract

Purpose

China has experienced a fast economic growth and shown a significant rise in income inequality in the past decades. During the same period, fluid milk consumption in urban areas has rapidly expanded. The objective of this paper is to analyze and simulate the influence of income distribution changes on fluid milk consumption of households in urban China.

Design/methodology/approach

This study applies an inverse hyperbolic sine (IHS) double-hurdle model to modeling at-home fluid milk consumption of households across different income strata based on a sample of 11,861 urban households in five provinces in China, and simulating the impact of changing income distribution, including five income growth patterns, on fluid milk consumption of total households as well as specific household groups.

Findings

The fluid milk consumption in urban China will continue to increase, with the unconditional income elasticity being 0.334 for the full sample and 0.347, 0.335 and 0.162 for the low-, middle-, and high-income groups, respectively. The simulation results show an evidence that, compared with distribution-neutral and disparity-enlarging income growth patterns, a rising income equality would lead to a more significant increase in fluid milk consumption. And the inequality-reducing income growth pattern has a larger impact on fluid milk consumption of households with seniors and no children, as well as households having no local urban household registration (hukou).

Practical implications

The government should strengthen the supply measures of fluid milk in urban areas, enlarge domestic dairy production, and diversify the sources of milk imports. It is also necessary to subsidize low-income families, especially households with seniors or households migrated from other areas without getting local urban hukou, which could simultaneously improve nutritional benefits and alleviate financial pressures.

Originality/value

A simulation considering the evolution of income distribution as well as different household groups is conducted. Widely distributed data with a large sample size and detailed demographic information are used. The problems of zero consumption and non-normal distribution are addressed by the IHS double-hurdle model.

Details

China Agricultural Economic Review, vol. 12 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 1 May 1994

Victor P. Janule

The SensaDyne Tensiometer uses a patented technology that is a refinement of the maximum bubble pressure method. This method was first suggested by Simon in 1851 and later…

Abstract

The SensaDyne Tensiometer uses a patented technology that is a refinement of the maximum bubble pressure method. This method was first suggested by Simon in 1851 and later developed by Jaeger in 1917. The first viable commercial instrument was introduced in 1982, and a subsequent design interfaced to the personal computer several years later, allowing us now to use software tools which make three‐dimensional studies relatively straightforward.

Details

Pigment & Resin Technology, vol. 23 no. 5
Type: Research Article
ISSN: 0369-9420

Article
Publication date: 8 January 2018

Peter Curwen and Jason Whalley

The purpose of this paper is to examine the current provision of high-speed data networks in the African continent, in particular taking into account both licences and…

Abstract

Purpose

The purpose of this paper is to examine the current provision of high-speed data networks in the African continent, in particular taking into account both licences and launches related to long-term evolution (LTE).

Design/methodology/approach

An up-to-date underlying database of licences and launches relating to LTE in Africa has been compiled. There is also a review of the international operators that are playing a significant role in LTE provision. A number of individual country case studies are considered. Issues of corruption are addressed.

Findings

Africa is interesting because it has been a laggard in the development of high-speed data networks, but now finds itself in a position to leapfrog 3G technologies, and hence close the gap that had opened up compared to, for example, Europe and Asia. This process is effectively assisted by the lack of fixed-wire connectivity but has to take account of the difficulty of attracting the requisite investment.

Research limitations/implications

Databases relating to Africa are always difficult to compile.

Originality/value

Published work relating to mobile networks in Africa is not plentiful, and it is difficult to find relevant data in the public domain. A key aspect of the paper is that the database is entirely up-to-date.

Details

Digital Policy, Regulation and Governance, vol. 20 no. 1
Type: Research Article
ISSN: 2398-5038

Keywords

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