SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Elroy Jetson11/7/2006 11:14:06 PM
   of 110194
 
Total government revenues take 17% of Russia's $1.1 trillion Euro economy.

Bribes are estimated to take an equal amount, another 17% of Russia's GDP.

Bribes in Russia 'equal' to state revenue

Sydney Morning Herald -- November 8, 2006
smh.com.au

Corrupt Russian officials are estimated to take bribes of 189 billion euros ($312.4 billion) a year, an amount almost equal to the state's entire revenues, a senior prosecutor said in an interview with the government daily printed.

Deputy Prosecutor General Alexander Buksman told the Rossiiskaya Gazeta that prosecutors had uncovered over 9,000 cases of bribery in the first eight months of the year.

He was the first senior Russian official to publicly put a monetary figure on the problem of corruption in Russia, which has flourished since Czarist times but has markedly increased in recent years under President Vladimir Putin.

Putin, a former KGB colonel, was elected in 2000 promising to set Russia on the path to modernisation and impose a "dictatorship of the law" to eliminate graft.

But anti-corruption campaigners say the state-driven assault launched in mid 2003 against now jailed billionaire tycoon Mikhail Khodorkovsky and his Yukos oil giant gave bureaucrats at all levels of government a green light to extort money from businesses.

The global anti-corruption group Transparency International and Russia's business-funded National Anti-Corruption Committee last year estimated that the level of graft had jumped as much as sevenfold since 2001.

Russia is near the top of Transparency International's scale of corruption, at No.121 out of 163 in 2006, along with such countries as Rwanda and Burundi. Four years ago, it had been rated 71. On that scale, the least corrupt is Finland, while Haiti and Burma occupy the top two places.

The prosecutor said that Putin had ordered him to take charge of a new anti-corruption task force after the apparent contract killing of Central Bank First Deputy Chairman Andrei Kozlov on September 13.

Kozlov was shot in the head as he left a soccer game between bank employees in Moscow and his murder is widely believed to be connected to his campaign against money-laundering and criminality in the banking sector.

Buksman complained of a lack of cooperation between law enforcement bodies in combating money-laundering and other economic crimes and conceded that so far only lower-ranking officials were being prosecuted for corruption.

In one case, the deputy head of the state property fund's subsidiary in the southern region of Krasnodar is accused of pocketing 323,000 euros ($534,000) in bribes, said Buksman.

A study published in September 2005 by the respected Indem Institute concluded that bribes paid by businesses to police, licensing bodies and state inspectors had soared by nearly 10 times between 2001 and 2005 to 249 billion euros ($411.57 billion).

Indem head Georgy Satarov said that the government's decision to shine a spotlight on its anti-corruption efforts appeared to be aimed at voters ahead of national parliamentary elections next year and the 2008 presidential vote.

But he said that the gradual erosion of democratic checks and balances that has taken place under Putin - the squeezing of opposition parties, the independent media and civil society - made it impossible to rein in greedy Russian bureaucrats.

"An essential condition for fighting corruption is to have the means to control the bureaucracy," Satarov said, alleging that there was no rule of law in Putin's Russia.

AP
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext