draining development.pdf - Khazar University

The Kleptocrat’s Portfolio Decisions 451price to the Nigerian army. US$184 million held in an account at the Bank ofIndia in Jersey was confiscated by the Jersey authorities, and Mr. Bhojwani, theIndian businessman, was sentenced to six years in jail. See Pidd, H., “JerseyCourt Jails Former Nigerian Dictator’s Business Associate,” Guardian, June 27,2010, http://www.guardian.co.uk/uk/2010/jun/27/nigeria-dictator-businessman-jailed-jersey.16. The court system of the United Kingdom is divided among the courts of Englandand Wales, the courts of Northern Ireland, and the courts of Scotland.17. Colmey, J., and D. Liebhold, “The Family Firm,” Time Magazine, May 24, 1999,http://www.time.com/time/world/article/0,8599,2056697,00.html.18. In a second set of proceedings, Tommy is suing BNP for losses incurred by BNPin investing Garnet funds.19. Onishi, N., “In Indonesia, Middlemen Mold Outcome of Justice,” New YorkTimes, December 19, 2009, http://www.nytimes.com/2009/12/20/world/asia/20indo.html.20. The police helicopters were secondhand East European models that requiredlengthy pilot training and heavy maintenance schedules to be kept in the air.Within four months of being supplied, the pilot trainers departed, leaving noskilled pilots, and the helicopters were grounded. The Post Office computers wereto be supplied to all 800 rural post offices to provide interactive access to accountsall over Kenya. This would have required expensive satellite access and, morebasically, a regular supply of electricity, which simply does not exist in remoterural areas, where the demand for such services was, in any case, nonexistent.21. KACC was superseded by the Ethics and Anti-Corruption Commission inAugust 2011.22. A full account of the Anglo-Leasing affair and Githongo’s role is found in Wrong(2009), who highlights the wider political implications.23. Many of the contracts required payment directly to banks in Switzerland.24. In the High Court of Kenya at Nairobi misc Civil Application 695 of 2007.25. Reading this decision, it is impossible not to recall the slogan paraded by membersof the Law Society of Kenya a few years ago: “Why hire a lawyer, when youcan buy a judge?”26. The suspension is now in the process of being lifted in relation to some of thecontracts.27. In particular and quite startlingly, the Swiss press has made a connection withBradley Birkenfeld, a U.S. citizen sentenced in the United States in August 2009for having masterminded transfers of billions of dollars in U.S. taxpayer moniesto UBS in Switzerland to evade payment of U.S. taxes. Birkenfeld’s cooperationwith the Swiss federal authorities has been the key to the recovery of these moniesfrom UBS. A court order has, however, been obtained since his sentencingin an effort to prevent him from cooperating with the Swiss and Kenyans onthe same grounds as the KACC cooperation with the Serious Fraud Office in theU.K. was halted.