Posted 11:47 PM
by The Moderator
Bolivians Vote to Boost Control of Gas Reserves (washingtonpost.com): "LA PAZ, Bolivia, July 18 -- Bolivians voting in a referendum Sunday overwhelmingly supported President Carlos Mesa's plan for the government to exert greater control over U.S. and other foreign gas companies.
With 66.4 percent of the vote sampled by the government, 87 percent of voters approved a referendum measure that would repeal a 1996 law permitting foreign energy companies to exploit Bolivia's vast and virtually untapped natural gas reserves.
In addition, 92 percent supported a proposal for Bolivia to take back ownership of natural gas at the wellhead, meaning that oil companies would be paid for pumping the oil but would not own it. "
Posted 10:46 AM
by The Moderator
TI Daily Corruption News Full Text Service: "China
Citigroup woes reflect risks of China operations
Dow Jones Newswires, 05 July 2004
Citigroup Inc.'s (C) recent suspension of two senior China bankers might prompt foreign firms to rethink their traditional reliance on well-connected power brokers for a fast-track to market share.
Citigroup confirmed late last month that it had suspended Margaret Ren, daughter-in-law of former Chinese premier Zhao Ziyang and the vice chairman of its China investment banking operations, and Earl Yen, director of China investment banking.
The two were suspended for 'presentation of false information to the company and its regulators' unrelated to client matters, Citigroup said, without elaborating.
Ren was critical to Citigroup's success in several big ticket China deals including last year's hugely successful initial public offering of China Life Insurance Co. (LFC).
Her unseemly fall from grace highlights the risks attached to locally-hired figures employed for their guanxi, or connections, rather than business acumen and acquaintance with international standards of ethical practices.
Citigroup has declined to provide additional details about the suspensions, or to say whether criminal charges may be filed by any party.
But the Citigroup incident serves as a lesson for multinational firms operating in China, Hongkong and Shanghai Banking Corp. Ltd. Chairman David Eldon said. His bank is a unit of HSBC Holdings PLC (HBC).
