[5/5] Total Votes [ 2 ]
Scandals in the corporate world, these are centered around corruption, fraud or bribary to have a significant impact on the economy as a whole.
1. Swissair Scandal
Swissair, a former national airline of Switzerland and major international airline, was grounded in October 2001 due to a bad expansion move. With 30% of its shares in stocks owned by the Switzerland government, the company implemented the Hunter Strategy, a major expansion program. this resulted in a financial crisis that also affected its parent company, SAirGroup, which was already hurt by the September 11 attacks. As the entire Swissair fleet was grounded and officially dismantled in March 2002, it was later acquired by Crossair and liquidation firm Jurg Hoss.
2. Barclays Group Scandal
Barclays, one of the world’s largest banks, was hammered by a corruption scandal involving the Libor manipulation, where banks lend each other money at high rates.
3. AIG - American Insurance Group Scandal
Multinational Insurance Group(AIG) massive accounting fraud to tune of $3.9billion was alleged, along with the bid-rigging and stock price manupulation. Penalties were settled with the SEC for $10million in 2003 and $1.6billion in 2006 with a Louisiana pension fund for $115 million and with 3 Ohio pension funds for $725 million. Greenberg was fired, but has faced no criminal charges.
4. Satyam IT Compnay Corruption
Indian IT Services and back-office accounting firm admitted the fraud in a leeter to the companys board of directors. Falsely boosted revenue by $1.5 billion by falsified revenues , margins and cash balances. Founder Chairman Ramalinga Raju and his brother charged with breach of trust, conspiracy, cheating and falsification of records.
5. WorldCom accounting scandal
WorldCom, once the second biggest U.S. long-distance phone company, filed for bankruptcy in 2002 after it revealed its executives inflated the companys assets by $11 billion through dodgy accounting. Tens of thousands of jobs were lost because of the scandal. Bernard Ebbers, the former CEO of WorldCom, was sentenced to 25 years in prison in 2005.
6. Zuma Nkandla Scandal
The public protector of south africa, an anti-corruption body, ruled in 2014 that $23m (£15m) of public money had been improperly spent on Mr Zumas rural home in Nkandla in KwaZulu-Natal province, and ordered him to reimburse part of the expense.
7. Petrobras corruption
Brazils state-owned oil giant Petrobras (PBR) has been entangled in a sprawling corruption scandal for months. Prosecutors have accused former executives of illegally diverting billions from its accounts for their personal use, or to pay off officials.
8. Toshiba Accounting Scandal
CEO and President Hisao Tanaka resigned from the firm, and an independent investigators found that Toshiba had a corporate culture in which management decisions could not be challenged and Employees were pressured into inappropriate accounting by postponing loss reports or moving certain costs into later years.
9. Volkswagen Emissions Scandal
When Volkswagen revealed in September that it had installed software on millions of cars in order to trick the Environmental Protection Agency’s emissions testers into thinking that the cars were more environmentally friendly than they were, investors understandably deserted the company.
10. FIFA - Massive web of corruption
FIFA president Sepp Blatter and Union of European Football Associations President Michel Platini were both given eight year suspensions from soccer activities this month over $2 million paid to Platini by Blatter in 2011.