10 global corruption scandals that sent shockwaves

There have been several corruption scandals around the world that have had international repercussions and exposed the depths of unethical behaviour in both the public and private spheres.

Scams ranging from financial fraud to political bribery have caused investigations, damaged public confidence, and resulted in important changes to laws and regulations. Here are ten of the most prominent global corruption scandals that have caused profound waves in governments, economy, and society around the globe.

Panama Papers

Panamanian law firm Mossack Fonseca leaked 11.5 million Panama Papers, exposing wealth concealment, tax avoidance, and money laundering. 82 nations opened investigations, and leaders resigned or were charged. Many pledged to abolish financial secrecy, sixteen enacted significant reforms, and collected $1.2 billion in tax revenue.

Bernie Madoff Ponzi Scheme 

Over the course of several decades, Bernie Madoff masterminded one of the biggest Ponzi schemes in history, robbing investors of billions of dollars. Madoff’s investment company promised large returns, but instead paid returns to previous investors with the funds of new ones.

Brazil’s Operation Car Wash

Many politicians and business executives were arrested and prosecuted as a result of Operation Car Wash, a huge corruption investigation in Brazil that exposed a vast bribery and money laundering conspiracy involving the state-owned oil corporation Petrobras.

Siemens Bribery Scandal 

Siemens AG, a multinational conglomerate based in Germany, was embroiled in a bribery scandal in which it paid bribes to business partners and government officials in different countries in order to obtain contracts. The scandal cost the company heavily in terms of fines and harm to its reputation.

Sani Abacha Scandal

The dictator and army officer Sani Abacha of Nigeria was charged with embezzling $3–$5 billion in public funds. In 2014,the US Justice Department froze more than $458 million in illegal cash that he and his accomplices concealed around the globe. Businesses connected to the Abacha family have filed a lawsuit to stop the repatriation.

LIBOR Scandal 

Major banks were involved in the London Interbank Offered Rate (LIBOR) scandal, which entailed influencing the benchmark interest rate that influences financial transactions worth trillions of dollars globally. Banks that manipulated the rate in order to make money did so in court and through regulatory changes.

Volkswagen Emissions Scandal 

It was discovered that Volkswagen had included software in its diesel cars to evade pollution testing. Millions of cars were impacted by the scam globally, which also caused enormous fines, recalls, and a serious damage to Volkswagen’s brand.

1MDB Scandal 

The 1Malaysia Development Berhad (1MDB) scandal involved the misappropriation of billions of dollars from a Malaysian government-run strategic development company. The scandal implicated former Malaysian Prime Minister Najib Razak and other high-ranking officials.

It is believed that billions of dollars in development funds were used for celebrities, paintings, and New York real estate through shell corporations.

Malaysia’s Scorpene Submarine Scandal 

In the Scorpene submarine affair, the Malaysian government and French and Spanish firms agreed to buy submarines, and charges of corruption and bribes were made. High-ranking Malaysian officials were implicated in the affair, which sparked political unrest.

FIFA Corruption Scandal 

The United States Department of Justice indicted several FIFA officials for corruption, including bribery, fraud, and money laundering, in connection with the bidding process for hosting rights of FIFA World Cups and other related activities.

FIFA President Sepp Blatter’s reelection, which was characterized by impunity, led to a significant drop in public confidence in the sport.

A survey revealed that, 53% of fans worldwide had no faith in FIFA, and only 25% of fans believed that Gianni Infantino, the recently reelected president, had brought back fan confidence.