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Trading cash for influence

Influence peddling, also called traffic of influence or trading in influence, is the practice of using one's influence in government or connections with authorities to obtain favours or preferential treatment for another, usually in return for payment. Influence peddling per se is not necessarily illegal, as the Organisation for Economic Co-operation and Development (OECD) has often used the modified term "undue influence peddling" to refer to illegal acts of lobbying;[1] however, influence peddling is typically associated with corruption and may therefore delegitimise democratic politics with the general public. It is punishable as a crime in Argentina, Belgium, Bulgaria, Brazil, France, Hungary, Italy, Lithuania, Mexico, Portugal, Romania,[2] Spain, and the United Kingdom.[citation needed]

Known cases

In December 2008, Rod Blagojevich, the then Governor of Illinois, was accused of influence peddling in attempting to sell the U.S. Senate seat vacated by the then President-elect Barack Obama.[3] Blagojevich was convicted in 2011 and sentenced to 14 years in prison. He was later pardoned by then-President Donald Trump by February 2020. Larry O'Brien, the then mayor of Ottawa, was brought to trial on similar grounds in May 2009. O'Brien was accused of purported influence peddling. On 5 August 2009, both charges were dismissed.[4]

The 2009 cash for influence scandal was a political scandal in the United Kingdom concerning four Labour Party Life Peers offering to help make amendments to legislation in exchange for money.[5][6]

In April 2009, former Newfoundland and Labrador politician Ed Byrne was convicted of influence peddling for his actions in the Constituency Allowance Scandal. He was the first of four politicians convicted in relation to the Scandal and the remaining politicians are on or awaiting trial.[7]

A 2010 journalistic sting operation revealed Members of the United Kingdom Parliament and House of Lords offering to work for a fictitious political lobbying firm for fees of £3,000 to £5,000 per day (see 2010 cash for influence scandal).[8][9][10]

In 2011, the European Commission's Anti-fraud Office opened a formal investigation for corruption against a number of Members of the European Parliament (MEPs) after an article in The Sunday Times claimed they had tried to influence EU legislation in exchange for money. Three MEPs were convicted.[11][12][13]

In 2012, Amado Boudou, the then vice president of Argentina, was accused of being a mere straw owner of the printing house Ciccone Calcográfica, a private company that has contracts to print over 120 million new Argentine pesos banknotes, license plates, and other government issues. The scandal became known as Boudougate, as the contracts were awarded by Boudou himself when he was the Economy Minister.[14] In 2018, Boudou was convicted of corruption and sentenced to 5 years and 10 months in prison, as well as being banned from running for office. He was granted parole in 2021, 5 years into his sentence[15]

In the Radia tapes controversy of the late 2000s and early 2010, Nira Radia was under investigation for using her connections with Indian politicians and members of the Indian media to tilt the auction of multi-million dollar licence contracts in favour of certain companies and individuals. No major charges were brought against Radia, and the case did not result in convictions.[16]

In 2014, former French President Nicolas Sarkozy was investigated due to alleged influence peddling. Sarkozy was convicted in March 2021 for corruption and influence peddling. He was sentenced to three years in prison, with two years suspended and one year to be served under house arrest.[17][18]

In April 2015, the Public Prosecutor's Office of Brazil opened an investigation for influence peddling against Luiz Inácio Lula da Silva, at the time a former president of Brazil. It was alleged that, between 2011 and 2014, he lobbied for Odebrecht company to gain public procurements in foreign countries while also getting BNDES to finance those projects. Countries where this allegedly took place include Ghana, Angola, Cuba, and the Dominican Republic.[19] Lula was later convicted on separate corruption charges and imprisoned but was released in 2019 after Brazil's Supreme Court annulled his sentences. In 2022, Lula was re-elected as president of Brazil.

On 9 December 2016, the National Assembly impeached Park Geun-hye, the president of South Korea from 2013 to 2017, on charges related to influence peddling by her top aide Choi Soon-sil, and Hwang Kyo-ahn, the then Prime Minister of South Korea, assumed her powers and duties as Acting President as a result. The Constitutional Court of Korea upheld the impeachment by a unanimous 8–0 ruling on 10 March 2017, thereby removing Park from office. On 6 April 2018, South Korean courts sentenced her to 24 years in prison; this was later increased to 25 years, and Park was imprisoned at Seoul Detention Center. In 2018, two separate criminal cases resulted in an increase of seven years in her prison sentence. She was found guilty of illegally taking off-the-book funds from the National Intelligence Service and given a five-year prison sentence, and also found guilty of illegally interfering in the Saenuri Party primaries in the 2016 South Korean legislative election, for which she was sentenced to two more years in prison.[20][21][22][23]

In Australia, the former New South Wales minister and Labor powerbroker Eddie Obeid was convicted in 2016 of misconduct in public office and sentenced to five years' imprisonment for lobbying a senior state official about commercial leases at Sydney's Circular Quay without disclosing his family's interest in them.[24] In 2021 Obeid, his son Moses and the former mining minister Ian Macdonald were convicted of conspiring to commit misconduct in public office over a coal exploration licence covering land owned by the Obeid family; the High Court of Australia dismissed their appeals in February 2026.[25]

In July 2022 investigations began into the Qatar corruption scandal at the European Parliament (also known as "Qatargate").[26] A number of politicians have confessed or plead guilty to corruption.[27][28]

In June 2023 the New South Wales Independent Commission Against Corruption found that Daryl Maguire, a state member of parliament from 1999 to 2018, had engaged in serious corrupt conduct by monetising his parliamentary position through a company that offered to sell access to "high levels of government": he pursued undisclosed commissions on property and migration deals, and sought payment for introducing a senior Chinese official to the then premier, Barry O'Farrell.[29][30] It made the same finding against the former premier Gladys Berejiklian over her undisclosed relationship with Maguire, a finding upheld by the New South Wales Court of Appeal in 2024.[31] Maguire was convicted in 2026 of conspiracy over a fraudulent visa scheme examined in the same inquiry.[32]

In November 2023, the Order and Justice political party of Lithuania was convicted through last instance for charges dating back to 2013, when it pressured a number of connected or dependent civil servants working for Ministry of the Interior (Lithuania), Ministry of Environment (Lithuania) to influence results of public procurement to benefit specific businessman who in turn donated or illegitimately paid for political campaign publicity.[33]

In Australia, membership of the invitation-only Chairman's Lounge run by the airline Qantas cannot be bought and is granted at the airline's discretion; by October 2024, 181 of the 227 federal parliamentarians had disclosed access on the registers of interests,[34] as had senior officers of the airline's regulators.[35] The journalist Joe Aston, who in 2023 described the airline as "one of the most successful influence peddling machines in modern Australia",[36] wrote in 2024 that the lounge was where "Qantas' skilful influence-peddling meets the spectacular entitlement culture of the nation's parliamentary caste".[37] In July 2023 the government refused a request by Qatar Airways to expand its Australian services, having consulted only Qantas and Virgin Australia about it; a Senate select committee found that at least 12 different arguments had been advanced for the decision.[38] A former chair of the competition regulator, Allan Fels, called it "just looking after Qantas";[39] the transport minister, Catherine King, said she had not taken either airline's commercial interests into account,[40] and Aston said it had not necessarily been made in exchange for lounge memberships.[36] Transparency International Australia said such benefits could lead to "undue influence on policy making";[41] the transport economist Rico Merkert said it was "impossible to know" whether decisions favouring Qantas were attributable to lounge access.[42]

The Biden family has faced allegations of influence peddling related to foreign business dealings.[43][44] In 2025, President Joe Biden issued a pardon for his brother, James Biden, who was under investigation for allegedly leveraging the family's political connections for financial gain. The pardon effectively ended the probe, drawing criticism and raising questions about accountability and ethics in public office.[45]

In March 2025, Bernard Squarcini, former head of France's domestic intelligence agency, was convicted of influence peddling and sentenced to four years in prison. Squarcini was found guilty of leveraging his official position to benefit luxury conglomerate LVMH by accessing confidential police files and conducting unauthorized surveillance on behalf of the company.[46]

See also

References

  1. "Building a Cleaner World Economy". OECD. Retrieved 6 July 2020.
  2. Semeraro, P. (2000). I delitti di millantato credito e traffico di influenza [The offenses of false claims and traffic of influence] (in Italian). Milan: Giuffrè. ISBN 8814083029.
  3. Hornick, Ed; Kristi Keck; Brianna Keilar (31 December 2008). "Senate Democrats hope stalling can block Blagojevich's pick". CNN. Archived from the original on 19 October 2010. Retrieved 31 December 2008.
  4. Butler, Don (6 August 2009). "The Mayor Returns". The Ottawa Citizen. Archived from the original on 15 April 2012. Retrieved 13 May 2011.
  5. "Two Labour peers face suspension". BBC News. 14 May 2009. Retrieved 28 February 2026.
  6. "Lords vote to suspend two peers". BBC News. 21 May 2009. Retrieved 28 February 2026.
  7. "Former Nfld. cabinet minister pleads guilty to fraud". The Globe and Mail. 17 January 2009. Retrieved 15 May 2025.
  8. "Revealed: Labour's cash for influence scandal". The Times. 21 March 2010. Archived from the original on 6 May 2010. Retrieved 28 February 2026.
  9. Lefort, Rebecca (21 March 2010). "Four Labour MPs implicated in 'cash for influence' scandal". Daily Telegraph. Archived from the original on 24 March 2010. Retrieved 28 February 2026.
  10. "Ministers attack 'MPs for hire'". BBC News. 21 March 2010. Retrieved 28 February 2026.
  11. Shields, Michael (14 January 2013). "Strasser jailed for bribery in European parliament sting". Reuters. Archived from the original on 6 March 2016. Retrieved 28 February 2026.
  12. Milevska, Tanja (3 February 2014). "Ex-MEP to serve prison in 'cash-for-laws' scandal". Euractiv. Retrieved 28 February 2026.
  13. "Adrian Severin, condamnat definitiv la 4 ani închisoare cu executare". Agerpres (in Romanian). 16 November 2016. Archived from the original on 16 November 2016. Retrieved 28 February 2026.
  14. "El caso de la ex imprenta Ciccone". La Nación (in Spanish). Archived from the original on 8 October 2018.
  15. "Former vice-president Amado Boudou granted parole". Buenos Aires Times. 23 July 2021. Retrieved 17 January 2025.
  16. "Constitution club of india". 29 September 2017. Archived from the original on 29 September 2017. Retrieved 15 May 2025.
  17. "French ex-President Sarkozy held over influence claims". BBC News. 1 July 2014. Retrieved 15 May 2025.
  18. "Sarkozy: Ex-French president gets jail sentence over campaign funding". 30 September 2021. Retrieved 15 May 2025.
  19. As suspeitas de tráfico de influência internacional sobre o ex-presidente Lula: O Ministério Público Federal abre uma investigação contra o petista – ele é suspeito de ajudar a Odebrecht em contratos bilionários, 30/04/2015 - Updated 08/05/2015
  20. Choi, Haejin (20 July 2018). "South Korean court sentences president Park to another eight years in jail". Reuters.
  21. Sang-Hun, Choe (9 December 2016). "South Korea Enters Period of Uncertainty With President's Impeachment". The New York Times. ISSN 0362-4331. Retrieved 15 May 2025.
  22. Sang-Hun, Choe (10 March 2017). "South Korea Removes President Park Geun-hye". The New York Times. ISSN 0362-4331. Retrieved 15 May 2025.
  23. Lee, Joyce. "South Korean court raises ex-president Park's jail term to 25 years". U.S. Archived from the original on 9 June 2023. Retrieved 15 May 2025.
  24. Carter, Lucy; Calderwood, Kathleen (15 December 2016). "Eddie Obeid sentenced to five years' jail for misconduct in public office". ABC News. Retrieved 27 August 2026.
  25. Byrne, Elizabeth (4 February 2026). "Eddie Obeid, son Moses and Ian Macdonald lose High Court appeal against conviction for conspiring over coal mine licence". ABC News. Retrieved 27 August 2026.
  26. Matriche, Joël; Colart, Louis; Clérix, Kristof (9 December 2022). "Info «Le Soir»: le Qatar soupçonné de corruption en plein cœur de l'Europe". Le Soir (in French). Archived from the original on 7 April 2023. Retrieved 28 February 2026.
  27. Van Campenhout, Charlotte; Parodi, Emilio (15 December 2022). "Eva Kaili's partner confesses role in European Parliament corruption case - sources". Reuters. Retrieved 28 February 2026.
  28. Haeck, Pieter; Gijs, Camille (17 January 2023). "Qatargate: Pier Antonio Panzeri admits guilt, strikes plea deal". POLITICO. Retrieved 28 February 2026.
  29. Malone, Ursula (29 June 2023). "The key findings from ICAC's report into the conduct of Gladys Berejiklian and Daryl Maguire". ABC News. Retrieved 27 August 2026.
  30. "Corruption inquiry in Australia's NSW state reveals China links". Al Jazeera. 29 June 2023. Retrieved 27 August 2026.
  31. McKinnell, Jamie (26 July 2024). "Former NSW premier Gladys Berejiklian fails to overturn ICAC's serious corruption conduct finding". ABC News. Retrieved 27 August 2026.
  32. Hayter, Melinda; Clifford, Jessica (17 July 2026). "Daryl Maguire found guilty of conspiracy over fraudulent visa scheme". ABC News. Retrieved 27 August 2026.
  33. Steniulienė, Ingrida (22 November 2023). "Likviduojama partija "Tvarka ir Teisingumas" galutinai nuteista už prekybą poveikiu". Lithuanian National Radio and Television (in Lithuanian). Retrieved 31 May 2025.
  34. Levinson, Brittney (30 October 2024). "The politicians with and without access to Qantas' Chairman's Lounge". The Canberra Times. Retrieved 27 August 2026.
  35. Truu, Maani (13 September 2023). "Senior public servants responsible for regulating Qantas accepted Chairman's Lounge invitations". ABC News. Retrieved 27 August 2026.
  36. 1 2 Huitson, Joseph (4 September 2023). "'Successful influence peddling machine': Financial Review columnist Joe Aston scathing of Qantas' leadership team". Sky News Australia. Retrieved 27 August 2026. Sky News Australia was rebranded News24 in July 2026; the article is now hosted at news24.com.au.
  37. Aston, Joe (26 October 2024). "The gravy plane: How Alan Joyce cultivated a PM and ruled the skies". Good Weekend. The Sydney Morning Herald. Retrieved 27 August 2026. Edited extract from Aston, Joe (2024). The Chairman's Lounge: The Inside Story of How Qantas Sold Us Out. Simon & Schuster Australia. ISBN 978-1-76142-976-7.
  38. Select Committee on Commonwealth Bilateral Air Service Agreements (October 2023). "Chapter 2 – Air service agreements and the Qatar decision". Commonwealth Bilateral Air Service Agreements: Report. Parliament of Australia. Retrieved 27 August 2026.
  39. Ainsworth, Kate; Hutchens, Gareth (30 August 2023). "Former ACCC bosses criticise federal government for blocking Qatar Airways flight requests to protect Qantas". ABC News. Retrieved 27 August 2026.
  40. Nelson, Jake (14 November 2023). "I did not consider Qantas or Virgin in Qatar decision, says King". Australian Aviation. Retrieved 27 August 2026.
  41. McKenzie, Parker (29 October 2024). "'Alarm bells': The influence that Qantas is having on Australian politics". The New Daily. Retrieved 27 August 2026.
  42. Pearlman, Jonathan (16 November 2024). "Secret Qantas lounges for MPs in Australia raise concerns about political quid pro quo". The Straits Times. Retrieved 27 August 2026.
  43. "The Bidens' Influence Peddling Timeline". United States House Committee on Oversight and Accountability. Retrieved 13 May 2025.
  44. Racker, Mini; Bennett, Brian (10 May 2023). "Comer Swings and Misses on Allegations of Influence Peddling". TIME. Retrieved 13 May 2025.
  45. Nelson, Steven; Glebova, Diana; Christenson, Josh (20 January 2025). "Biden pardons his brother James Biden". Retrieved 13 May 2025.
  46. n.a. (9 March 2025). "Conviction of France's Former Intelligence Chief in LVMH Influence Peddling Case". MSMTIMES.COM. Archived from the original on 13 May 2025. Retrieved 13 May 2025.

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