After a number of recent scandals , including one that involves a big US bank (Morgan Staley), FDI, real estate and Sino-US corruption (killing several birds with one stone – and usefully reminding us that assumptions about the nationality of the naughty ones should be left on the plane), Caijing reported China’s plan to “target financial and real estate crimes in 2009”.
“The Supreme People’s Procuratorate handled a total of 952,583 criminal arrests last year, up 3.5 percent from 2007. It prosecuted 1,143,897 suspects, 5.7 percent more than in 2007. Corruption cases made up 26,684 of the total, while the number of individuals suspected of corruption was 33,953”.
So much for a harmonious society. But for those in business, hard times can help expose wrongdoing (ask Madoff!), but seeking it out proactively can help plug financial leaks and control business impact.
Time to dust off the corporate governance briefing, and to bring in the investigators…Some of the things we have seen, you would not believe!