Home » Organised crime
Category Archives: Organised crime
What’s happened to the Pandora papers?
Sometime last week, I was amid a group of friends when the argument about the Pandora papers suddenly came up. In brief, the key questions raised were how come no one is talking about the Pandora papers again? What has happened to the investigations, and how come the story has now been relegated to the back seat within the media space? Although, we didn’t have enough time to debate the issues, I promised that I would be sharing my thoughts on this blog. So, I hope they are reading.
We can all agree that for many years, the issues of financial delinquencies and malfeasants have remained one of the major problems facing many societies. We have seen situations where Kleptocratic rulers and their associates loot and siphon state resources, and then stack them up in secret havens. Some of these Kleptocrats prefer to collect luxury Italian wines and French arts with their ill-gotten wealth, while others prefer to purchase luxury properties and 5-star apartments in Dubai, London and elsewhere. We find military generals participating in financial black operations, and we hear about law makers manipulating the gaps in the same laws they have created. In fact, in some spheres, we find ‘business tycoons’ exploiting violence-torn regions to smuggle gold, while in other spheres, some appointed public officers refuse to declare their assets because of fear of the future. Two years ago, we read about the two socialist presidents of the southern Spanish region and how they were found guilty of misuse of public funds. Totaling about €680m, you can imagine the good that could have been achieved in that region. We should also not forget the case of Ferdinand Marcos and his wife, both of whom (we are told) amassed over $10 billion during their reign in the Philippines. As we can see below that from the offshore leak of 2013 to the Panama papers of 2016 and then the 2017 Paradise papers, data leaks have continued to skyrocket. This simply demonstrates the level to which politicians and other official state representatives are taking to invest in this booming industry.
These stories are nothing new, we have always read about them – but then they fade away quicker than we expect. It is important to note that while some countries are swift in conducting investigation when issues like these arise, very little is known about others. So, in this blog, I will simply be highlighting some of the reasons why I think news relating to these issues have a short life span.
To start with, the system of financial corruption is often controlled and executed by those holding on to power very firmly. The firepower of their legal defence team is usually unmatchable, and the way they utilise their wealth and connections often make it incredibly difficult to tackle. For example, when leaks like these appear, some journalists are usually mindful of making certain remarks about the situation for the avoidance of being sued for libel and defamation of character. Secondly, financial crimes are always complex to investigate, and prosecution often takes forever. The problem of plurality in jurisdiction is also important in this analysis as it sometimes slows down the processes of investigation and prosecution. In some countries, there is something called ‘the immunity clause’, where certain state representatives are protected from being arraigned while in office. This issue has continued to raise concerns about the position of truth, power, and political will of governments to fight corruption. Another issue to consider is the issue of confidentiality clause, or what many call corporate secrecy in offshore firms. These policies make it very difficult to know who owns what or who is purchasing what. So, for as long as these clauses remain, news relating to these issues may continue to fade out faster than we imagine. Perhaps Young (2012) was right in her analysis of illicit practices in banking & other offshore financial centres when she insisted that ‘offshore financial centers such as the Cayman Islands, often labelled secrecy jurisdictions, frustrate attempts to recover criminal wealth because they provide strong confidentiality in international finance to legitimate clients as well as to the crooks and criminals who wish to hide information – thereby attracting a large and varied client base with their own and varied reasons for wanting an offshore account’, (Young 2012, 136). This idea has also been raised by our leader, Nikos Passas who believe that effective transparency is an essential component of unscrambling the illicit partnerships in these structures.
While all these dirty behaviours have continued to damage our social systems, they yet again remind us how the network of greed remains at the core centre of human injustice. I found the animalist commandant of the pigs in the novel Animal Farm, by George Orwell to be quite relevant in this circumstance. The decree spells: all animals are equal, but some animals are more equal than others. This idea rightly describes the hypocrisy that we find in modern democracies; where citizens are made to believe that everyone is equal before the law but when in fact the law, (and in many instances more privileges) are often tilted in favour of the elites.
I agree with the prescription given by President Obama who once said that strengthening democracy entails building strong institutions over strong men. This is true because the absence of strong institutions will only continue to pave way for powerful groups to explore the limits of democracy. This also means that there must be strong political will to sanction these powerful groups engaging in this ‘thievocracy’. I know that political will is often used too loosely these days, but what I am inferring here is genuine determination to prosecute powerful criminals with transparency. This also suggests the need for better stability and stronger coordination of law across jurisdictions. Transparency should not only be limited to governments in societies, but also in those havens. It is also important to note that tackling financial crimes of the powerful should not be the duty of the state alone, but of all. Simply, it should be a collective effort of all, and it must require a joint action. By joint action I mean that civil societies and other private sectors must come together to advocate for stronger sanctions. We must seek collective participation in social movements because such actions can bring about social change – particularly when the democratic processes are proving unable to tackle such issues. Research institutes and academics must do their best by engaging in research to understand the depth of these problems as well as proffering possible solutions. Illicit financial delinquencies, we know, thrive when societies trivialize the extent and depth of its problem. Therefore, the media must continue to do their best in identifying these problems, just as we have consistently seen with the works of the International Consortium of Investigative Journalists and a few others. So, in a nutshell and to answer my friends, part of the reasons why issues like this often fade away quicker than expected has to do with some of the issues that I have pointed out. It is hoped however that those engaged in this incessant accretion of wealth will be confronted rather than conferred with national honors by their friends.
BBC (2021) Pandora Papers: A simple guide to the Pandora Papers leak. Available at: https://www.bbc.co.uk/news/world-58780561 (Accessed: 26 May 2022)
Young, M.A., 2012. Banking secrecy and offshore financial centres: money laundering and offshore banking, Routledge
Cutting to the chase: A policy of ruination and mayhem.
“London Riots (Hackney) 8/8/11” by Mohamed Hafez is licensed under CC BY-SA 4.0 (edited)
The governments contingency plan ‘Operation Yellowhammer’ has just been released. Notice I use the words released rather than published, the latter suggesting that the government provided the information to the public willingly. Of course, nothing is further from the truth, the government were forced by parliament to release the document and it does not make pretty reading.
On closer examination, there are few surprises. Food prices will go up as certain foods become less available. More importantly, the document recognises that vulnerable groups, those on low incomes “will be disproportionately affected by any price rises in food and fuel”.
Protests and counter protest will take place across the country, inevitably this will lead to major disorder and will stretch an already overstretched police service to breaking point. The 20,000 extra police officers the government has promised are going to be needed. Some serious magic is required to produce these and quickly.
Lorries will be queuing up to cross the channel further stretching police and highways resources as they attempt to implement ‘Operation Brock’. The flow of goods will be severely disrupted and could have an impact on the supply of medicines and medical supplies. Once again, the vulnerable will be hit the hardest.
Some businesses will cease trading. You can bet that the people affected will not be those with money, only those without. Unemployment will go up as the economy takes a nose dive and fewer jobs become available.
There will be a growth in the black market. It doesn’t take a genius to work out the concept of supply and demand. Left unchecked, we could see the rise of organised crime far beyond that impacting the country presently. To exacerbate the problem, law enforcement data between the EU and the UK will be disrupted. Those 20,000 police officers are going to need to do double shifts.
Social care providers might fail. Never mind, its only the most vulnerable in society that are being looked after by them. If you can afford a good care home, it shouldn’t impact, if not, there are always police cells.
Just a few minor problems then with the advent of a ‘no deal Brexit’. Possibly exacerbated by natural phenomena such as flooding (of course that never happens) or a flu pandemic (I hope you’ve had your flu vaccine).
It doesn’t matter whether you voted to leave the European Union, or you voted to stay, you would have to be rather vacuous if you are not concerned by the contents of ‘Operation yellowhammer’.
But the most worrying aspect of all of this is that the government have been openly and vigorously pursuing a policy of leaving the EU with or without a deal. Let’s cut to the chase then, by pursuing its course of action, this government’s policy is to ruin the country and create mayhem. Would you really vote for that, I know I wouldn’t?
Are we facing an ‘arms race’ on the streets of the UK?
Dr Helen Poole is Deputy Dean in the Faculty of Health and Society and Lead for University of Northampton’s Research Centre for the Reduction of Gun Crime, Trafficking and Terrorism
As the Government’s Violent Crimes Bill passes through its second hearing, the emphasis is clearly on controlling corrosive substances and knives. This is entirely appropriate since the vast majority of armed crime resulting in death or injury in the UK currently involves one or the other. Other than proposing tighter controls on 0.5 calibre rifles and bump-stock devices, the Bill is virtually silent on firearms, although it is surprising that either of these devices are not more tightly regulated already.
However, what is of greater concern is that the UK and other EU jurisdictions are not taking stronger heed of the findings of the EU funded Project SAFTE, published by the Flemish Peace Institute in April 2018. SAFTE alludes to what it calls an ‘arms race’ based on the fact that there are more weapons entering the illicit market than are being seized. Thus, according to basic economic principles of supply and demand, firearms, and particularly military grade firearms, will become cheaper on the illicit market. Furthermore, as organised crime groups and gangs weaponise, there will be a greater need for their foes to be equally equipped.
The question of where these firearms and small arms and light weapons emanate from is key to understanding the potential problem this poses on the streets of the UK. The vast majority of firearms are produced legally, by states such as the UK and USA. However, the reason that there are so many illicit weapons in circulation, is that these firearms are often diverted into illicit hands, either through corruption or criminal activity. This diversion into what is commonly referred to as the ‘grey market’, contributes to more than 200,000 global firearms deaths every year, excluding conflict zones.
The firearms black-market, whereby weapons and ammunition are produced illegally, is of relative insignificance in the overall global picture of firearms related harm. Therefore, tackling the diversion of firearms from lawful production is more likely to have a positive impact on firearms related harm, and also combat the emerging arms race identified through Project SAFTE. Considering the scale of the grey market problem, it would appear that this is where resources should be directed if states and international organisations are serious about reducing the harm caused to societies by firearms. Indeed, the United Nations regard firearms as one of the obstacles to obtaining Sustainable Development Goal 16 on Peace Justice and Strong Institutions, particularly 16.4 which aims to ‘significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime’ by 2030.
The international arms trade and its subsequent implications for state sponsored and criminal diversion it clearly a politically sensitive topic. However, it is at the core of addressing the tens of thousands of lives that are lost to firearms annually.
The not so beautiful game?
Dr Stephen O’Brien is the Dean for the Faculty of Health and Society at the University of Northampton
The country is in the middle of “World Cup Fever”. At the time of writing, England play Sweden in a quarter final match tomorrow that if successful would see them through to a World Cup semi-final for the first time since Italia 90. We all know what happened next; the so called Gazza semi-final ending in tears. There is a large caveat though to this current wave of football fever. I suspect my friends north of the border are not sharing this fever in the way people are in England given the historic rivalry associated with one of the oldest international contests on a football pitch. That set aside, which is difficult when one is married to a Scot, as a dedicated football supporter the World Cup in Russia has, thus far, been a roaring success. It is probably the best tournament that I can remember watching for all sorts of reasons. Established football nations with a pedigree such as Holland and Italy failed to qualify and the so called “lesser” nations have been punching above their football weight in knocking out pre-tournament favourites Germany and Argentina. It is according to the vast majority of media reports a fantastic spectacle. Everyone seems to have forgotten the political disquiet about awarding the tournament to Russia in the first place with on-going concerns about their recent sporting track record and their place generally on the world’s political stage. I suspect even in Ukraine we are all entranced by the festival unfolding before our very eyes on our television screens each day. Football at Russia 2018 is indeed the beautiful game.
Scratch the surface however and things are perhaps not so beautiful. Any quick google search of the terms football and crime will yield a plethora of news stories, documentaries and other media. The major headline is always hooliganism which has dogged football for years. At its height in the UK in the 1970s the establishment response to this was robust with reference to legislative change, new criminal offences and the re-construction of football grounds to be hooligan proof. Hillsborough changed all that. Not immediately because the hooligan narrative was pervasive throughout the initial reporting, police response, subsequent enquiries and reports. A future blog will explore Hillsborough and the fall out in much more detail. For now let’s return to the World Cup. The hooligan narrative was certainly played out in the run up to the tournament with media reports of the dangers posed by staging it in Russia. By and large this has not materialised, but it must be clear that hooliganism and violence are never far away when passions run high but let’s hope it stays away. The other term which crops up in the google search is corruption and FIFA as the lead organisation has over the past years never been too far away from claims and counter claims about corruption linked to financial irregularity, bribing of officials in an attempt to win the right to stage the tournament, tax issues and ticket touting. Indeed the evidence suggests that financial irregularity appears to be rife from the top to the bottom of the football organisational structure. This has affected clubs as diverse as Juventus, Leeds United, Hartlepool and Glasgow Rangers. Football is a global business and the financial rewards are immense. The consequences are far reaching for clubs, organisations and the very game itself. I would argue that negativity around the financial implications of football has driven a wedge between club, country and the ordinary fan. Many have become disillusioned with the game.
However, despite the concerns about Russia 2018 and Qatar 2020 something about the actual tournament, the teams competing and the players themselves has changed in many peoples’ minds over the past three weeks. It looks like the ordinary fan is reconnecting. The England team, young and inexperienced they may be but they are social media savvy and have shown that they are also fans of the game and not aloof from the rest of us who marvel at how they and others play. I have even heard die hard Scottish fans remark that they are finding it hard to dislike the England team. Now that is a turn up for the books. The beautiful game may well be a terrible beauty to quote to W. B. Yeats but let’s revel in the current beauty. If anyone is in doubt about the game’s beauty take a look at Brazil’s fourth goal in the 1970 final against Italy. Scored by Carlos Alberta but crafted like a fine poem by the rest of the team. It is magical and my personal World Cup favourite moment.
So as we venture into the final rounds of this year’s World Cup we can all enjoy this international festival of football and hope that things are genuinely starting to change. Success on the pitch means everything and has such an impact on the country as a whole. By the time you read this that fever I mentioned at the start might have been ratcheted up or indeed may have dissipated. As a confessed Republic of Ireland fan I have to admit I’m quietly enjoying England’s success to date and secretly wish them well.