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International Bar Association 2010 Annual Conference

International Bar Association 2010 Annual Conference Global Update on Anti-Corruption Enforcement: Caribbean, Central America, and South America Report Edward H. Davis, Jr., Esq. October 3-8, 2010.

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International Bar Association 2010 Annual Conference

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  1. International Bar Association 2010 Annual Conference Global Update on Anti-Corruption Enforcement: Caribbean, Central America, and South America Report Edward H. Davis, Jr., Esq. October 3-8, 2010 701 Brickell Ave, 16th Floor, Miami, FL 33131 Tel: (305) 372-8282 Fax: (305) 372-8202 e-mail: edavis@astidavis.com

  2. Inter-American Development Bank Sanctions Sixteen Latin American Firms • Inter-American Development Bank (“IDB”)’s Office of Institutional Integrity released its 2009 Annual Report • 52 sanctions (36 to individuals and 16 to firms) were applied due to fraud, corruption, collusion or coercion in violation of IDB’s anti-corruption policies • The sanctioned firms include: • 2 firms in Honduras • 9 firms in Guatemala • 1 firm in Panama Astigarraga Davis The Power of Focus®

  3. Mechanism for Follow-Up on the Implementation of the Inter-American Convention Against Corruption (“MESICIC”) • September 2010: MESICIC’s Committee of Experts adopted reports on the implementation of the Inter-American Convention Against Corruption in Panama, Chile, El Salvador, Dominican Republic, Nicaragua, and The Bahamas. • The Committee also made recommendations with respect to the elimination of favorable tax treatment for expenditures made in violation of anticorruption laws, the prevention of bribery of domestic and foreign government officials, transnational bribery and illicit enrichment, and extradition. Astigarraga Davis The Power of Focus®

  4. ARGENTINA • April 2010: A federal judge in Buenos Aires launched an investigation into Miami-based Palmat International and Buenos Aires-based Madero Trading. The two firms allegedly charged illegal fees for serving as brokers in the sale of Argentinean agricultural machinery to Venezuela. • The alleged illegal commissions amount to 15-18% of the export of goods to Venezuela following a 2005 trade agreement under which Argentina sells equipment and food to Venezuela in exchange for fuel. • Argentina’s former ambassador in Venezuela has stated before the federal judge that local businessmen paid kickbacks to officials in the administration of former president Néstor Kirchner to be able to export their goods to Venezuela. Astigarraga Davis The Power of Focus®

  5. BELIZE • Inter-American Convention Against Corruption reviewed a draft Action Plan for Belize in March 2010 • According to a Committee of Experts: • Belize’s Prevention of Corruption Act of 2007 is relevant, but lacks conflict of interest standards regulating activities of former public servants • Standards should be established for addressing conflicts between individual’s public functions and responsibilities and individuals’ financial interests or outside activities related to future private employment. Astigarraga Davis The Power of Focus®

  6. BELIZE • In April 2010, the Belize City Council dismissed Kenyon Lord, its Documentation and Traffic Officer, on allegations of corruption related to the registration of vehicles by the Traffic Department. • The Internal Audit Unit continues its investigation and will hold a disciplinary hearing with two additional employees implicated so far. • All files will be forwarded to the police and Director of Public Prosecution for possible court action. Astigarraga Davis The Power of Focus®

  7. BOLIVIA • March 2010: President Evo Morales passed an anti-corruption law and made a plea to the international community not to protect corrupt Bolivians who have fled the country. The new law provides for the prosecution of any public official who becomes illicitly enriched with government assets. • The Bolivian Government estimates that corruption in Bolivia amounts to a loss of between US$200 and 300 million each year. Astigarraga Davis The Power of Focus®

  8. COSTA RICA • March 2010: Alcatel paid Costa Rica $10 million to settle corruption case involving the alleged payment of $2.5 million in bribes to public officials in exchange for approval of a cellular telephone contract. The civil suit for societal damages is pending against other defendants, including the former president, Miguel Angel Rodriguez. Miguel Angel Rodriguez • April 2010: El InstitutoCostarricenses de Electricidad sued Alcatel in Miami, Florida seeking treble damages for violations of Florida’s civil racketeering laws, based on allegations that the bribery and corruption in Costa Rica was partially directed from Miami, Florida and was part of a broader world-wide scheme. Astigarraga Davis The Power of Focus®

  9. GRENADA • August 2010: News sources report that the National Democratic Congress plans to ask the Tillman Thomas Government to appoint a special prosecutor to investigate allegations of corruptions against the previous Keith Mitchell administration. Keith Mitchell Astigarraga Davis The Power of Focus®

  10. The extradition of former President Alfonso Portillo to the United States on charges that he laundered millions of dollars he embezzled from the Government of Guatemala through U.S. bank accounts was approved in March 2010. If convicted in the U.S., Portillo faces a maximum term of 20 years in prison. Under the judges’ order, Portillo must be tried first in Guatemala on related embezzlement and laundering charges. Trial in Guatemala began in September 2010. GUATEMALA Astigarraga Davis The Power of Focus®

  11. HAITI • July 2010: Juan Diaz, a businessman from Miami, Florida, was sentenced to 57 months in prison after pleading guilty in the United States District Court for the Southern District of Florida to conspiracy to violate the Foreign Corrupt Practices Act and money laundering. Diaz admitted to conspiring to make over $1 million in payments to government officials to secure advantages for three Miami-Dade County telecommunications companies from Telecommunications D’Haiti and also admitted to laundering the payments through his company, J.D. Locator Services. Astigarraga Davis The Power of Focus®

  12. In February 2010, Marcelo Chimirri, former manager of Hondutel, was sentenced to 4 years in prison for the crime of abuse of authority of the public administration. Latin Node previously pleaded guilty, in US District Court for the Southern District of Florida, to violating the antibribery provisions of the Foreign Corrupt Practices Act in connection with US$1,099,889 in payments that were passed on as bribes to Hondutel officials. According to February 2010 news reports, the anti-corruption prosecutor seeks to charge former president Manuel Zelaya and several other former public officials for allegedly diverting $1.5 million in welfare funds to his campaign for a referendum on reforming the constitution and has asked that a Honduran court order their capture. HONDURAS Astigarraga Davis The Power of Focus®

  13. JAMAICA • Jamaica’s Contractor General, Greg Christie, recommended to the Prime Minister, the Leader of the Opposition, the Speaker of the House of Representatives, and the President of the Senate, the establishment of a National Independent Anti-Corruption State Agency. • The new agency would criminally investigate and independently prosecute all corruption and related criminal offenses. Astigarraga Davis The Power of Focus®

  14. The Republic of Trinidad and Tobago and various Soares entities settled their dispute arising out of civil RICO and fraud claims connected with the construction of the Piarco International Airport, pending in Miami, Florida. Without admitting liability, the Soares entities agreed to make payment of up to a total of US$4.5 million. The settlement also released over $98,000 in escrowed funds. The settlement also requires compliance with other non-monetary terms. TRINIDAD AND TOBAGO Astigarraga Davis The Power of Focus®

  15. TRINIDAD AND TOBAGO • On April 6, 2010, Attorney General John Jeremie presented the Uff Commission of Inquiry Report into the Construction Sector and UDeCOTT (Urban Development Corporation of Trinidad and Tobago) in the Senate. • AG Jeremie announced that the entire UDeCOTTboard of directors would be replaced, except for the recently-appointed chair, Jearlean John. • Calder Hart, former executive chairman,resigned in March 2010 after publication of documents alleging an apparent family link between Hart and a company which was awarded TT$820 million (US$136 million) in UDeCOTT contracts. • The Uff Report expressed serious concerns about the conduct of board members and senior managers, stating that they showed no regard for the public purse. Astigarraga Davis The Power of Focus®

  16. TRINIDAD AND TOBAGO • Robert Lindquist, a forensic investigator, handed down his report on CL Financial and CLICO in March 2010. • CLICO was rescued from total collapse by billions of dollars investedb by the Government on January 2009. • CLICO owes policy holders an estimated TT$17 billion (US$2.8 billion). • Central Bank Governor Ewart Williams previously said that the forensic probe of CL Financial by Lindquist could lead to civil and criminal charges being filed against CL Financial and CLICO. Astigarraga Davis The Power of Focus®

  17. TCI has been under direct British rule since August 2009, following a Commission of Inquiry report regarding allegations of corruption against former premier, Michael Misick and several other local officials. Special prosecutor Helen Garlick continues her investigation and stated that she has no intention of allowing individuals to dissipate assets that may be the proceeds of crime. In May 2010, Garlick filed the first legal action against Salt Cay Devco Limited, Salt Cay Estates Limited, and Salt Cay Golf Club Limited alleging that through a series of corrupt transactions, the defendants secured for themselves advantages in relation to the Salt Cay Development, such as execution of development agreements, sale of Crown land, and the grant of concessions, benefits, and discounts. TURKS AND CAICOS Former Premier Michael Misick Astigarraga Davis The Power of Focus®

  18. URUGUAY • According to August 2010 news reports, Uruguay’s Navy is being strictly scrutinized amid irregularities which led to the resignation of its commander in chief and prosecution of four high officials. • On August 20, 2010, a judge presiding over organized crime cases, ordered the officials to prison upon charging them with carrying out a fraudulent scheme involving fictitious purchases amounting to US$600,000. • The former commander in chief, Juan FernándezMaggio, resigned in February and has been charged with facilitating and initiating the bogus purchases of an engine test bench and a hydraulic crane. Juan FernándezMaggio Astigarraga Davis The Power of Focus®

  19. International Bar Association 2010 Annual ConferenceGlobal Update on Anti-Corruption Enforcement:Caribbean, Central America, and South America Report By: Edward H. Davis, Jr., Esq.Astigarraga Davis 701 Brickell Ave, 16th Floor, Miami, FL 33131 Tel: (305) 372-8282 Fax: (305) 372-8202 e-mail: edavis@astidavis.com

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