Bae Black Money Scandal

In: Business and Management

Submitted By jajjr72
Words 788
Pages 4
BAE Black Money Scandal “You have to learn the rules of the game. And then you have to play better than anyone else.” (Einstein, n.d.). It has been the better of two decades that one of the most prestige military arms manufacturers has armed United States troops. Sophisticated weaponry is the cornerstone that signifies a military’s strength and dominance. To meet the service and supply demands of today’s military, BAE System has made a commitment as the United States number one arms vendor. As chief distributors of arms, BAE have made customers on a global scale fulfilling the needs of militaries around the world. In the race for attracting customer dominance the better practices of business always have not been BAE’s top priority. Allegations that BAE were not using ethical business practices led to a case that inevitably unraveled BAE’s integrity. The United States lost confidence in BAE Systems by inconclusive allegations of the Al-Yamamah arms deal, bribery, and fraud.
Al-Yamamah Arms Deal The Al-Yamamah arms deal can best be described as “you scratch my back and I will scratch yours” recorded arms sales. Behind the smoke screen there was an agenda brewing between two parties the United Kingdom and Saudi Arabia. The Al-Yamamah arms agreement was an arms agreement between the two countries. September 1985 Saudi Arabia paid for the commercial order of arms sales by means of 600,000 barrels of crude oil per day delivered to the United Kingdom. The delivery did not include cash, but employment opportunities for more than 5,000 Saudi Arabia citizens. The two countries coordinated a win-win deal, and as for BAE’s future financial balance sheets winning is just a metaphor.

The Bribe In the world of business getting the best deal to make incredible profits is the spearhead of any corporate entity. Businesses strive to produce key viral…...

Similar Documents

Bae Case Study

...The baggage handling system is unique being integrated and automated. The BAE automated systems had enjoyed the reputation of being among the best and on the strength of its good work has been responsible for most of the major baggage systems recently installed in the United States. Weaknesses The baggage handling system has poor scheduling, new and untested technology, complexity of the system and changing requirements, highly visible mechanical problems, does not deliver productivity and efficiency, lower cost-effectiveness of the system. The Denver Airport did not open as scheduled; there were enormous costs on the part of the owners due to delays and high costs of maintaining the airport. On the management system, there were also a number of weaknesses: resignation of the DIA project head; death of the Chief Airport Engineer Walter Slinger who was the key player in the negotiations; communication was a problem from the beginning channels between (a) the city (b) the project management team (c) Consultants were never well defined; the city did not get airlines together to ask them what they wanted or needed to operate; the management team had no experience of baggage handling systems and treated it as being similar to pouring in concrete or fitting air-conditioning ducts; poor management relationships. BAE had to change its working structure to conform to DIA’s project management team structure. BAE felt restricted with the breaking over their agreement on......

Words: 655 - Pages: 3

Healthsouth Scandal

...Introduction Richard Martin Scrushy was born in 1952 in Selma Alabama. Richard is the son to Gerald and Gerri Scrushy. Gerald was a cash register salesman and Gerri was a registered nurse (Watson, 2005, p. 2). Richard worked until he became successful, wealthy, and powerful. He was able to obtain the American dream of family, security and wealth. In 2003, an accounting scandal threatened to change his career, his wealth, and his freedom. The Securities and Exchange Commission (SEC) filed a civil law suit against HealthSouth Corporation and Richard M. Scrushy. The SEC charged that the company inflated their books by $1.9 billion since 1999 (SEC, 2003). The filing of these charges had a multiple impact on the stakeholders. The ethical dilemmas that caused the rise and fall of Richard M. Scrushy will be reviewed. Scrushy’s Beginnings Scrushy began his humble beginnings in Alabama. Watson (2003), biography of Scrushy reports he dropped out of high school and worked as a gas station attendant and later a bricklayer. He eventually returned back to school and earned his high school diploma. Later Scrushy enrolled at Jefferson State Community College in Birmingham. He did a year at Jefferson State and a year of clinical training at the University of Alabama at Birmingham (UAB). Scrushy graduated in 1974 as a certified respiratory therapist (Watson, 2003, p. 1). Once Scrushy graduated with the certification of a respiratory therapist, he began climbing the......

Words: 2596 - Pages: 11

Black Money

...Indian Black Money Abroad In Secret Banks and Tax Havens Second Report Of The Task Force on the steps to be taken by India Members Shri Gurumurthy, Chartered Accountant, Chennai Shri Ajit Doval, former Director Intelligence Bureau, Delhi Prof R.Vaidyanathan, Professor of Finance Indian Institute of Management, Bangalore Shri Mahesh Jethmalani, Senior Advocate, Mumbai Submitted to BHARATIYA JANATA PARTY 1 I. The First Interim Report The first Interim Report of the Task Force appointed by the Bharatiya Janata Party was released to the public on 17-04-2009. Afterward different world governments, particularly those in the West, have increasingly begun targeting tax havens and intensely began pursuing black money. The US, and France particularly began a huge campaign against the evil of black money. The estimates black money lodged in tax havens by global financial institutions like the International Monetary Fund reached as high as $18 trillion. The instability in the global financial order itself was traced to the evil money. So the issue has now acquired a totally different dimension. In the first Interim Report, the Task Force had suggested broad national and global strategy for dealing with the menace of black money out of the country. The substance of the recommendations of the Task Force in the First Interim Report is summarized here: Global Strategy: • Creating a powerful public opinion and broad national consensus on the issue. Those who do not...

Words: 25854 - Pages: 104

Black Money

...EPCG SCHEME Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty for specified sectors and at a concessional rate of 3% Customs duty for all sectors, subject to an export obligation ranging from 6 to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 to 8 years reckoned from Authorization issue-date. Zero duty EPCG Scheme which had come to an end on 31-3-2012 has now been extended up tp 313-2013, for continued technological up-gradation of export sectors/units. Zero duty EPGC Scheme was not available to units that are availing the benefit of TUFS. Henceforth, even if the benefit of TUFS has been availed, additionally the zero duty EPCG Authorisation can be availed for another line of business by the same applicant. Further, if it is the same line of business, zero duty EPCG Scheme could still be availed if the benefit of TUFS already availed are surrendered/refunded with applicable interest. Similarly , the benefit of zero duty EPCG Scheme would be extended to Status Holders who availed the benefit of Status Holder Incentive Scrip (SHIS), provided they surrender the benefit with applicable interest. EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers. EPCG authorization holder can export either directly or through......

Words: 821 - Pages: 4

The Economy of Black Money

...The Economy of Black Money With the recent onslaught of allegations on benami properties, illegal wealth stashed in foreign banks and tax evasions the subject of black money is a hot topic in India. Professor Arun Kumar in his Lecture titled “The Economy of Black Money” debated and informed about various causes and its ill effects. Black money is only a tiny part of black economy. Arguably the entire elite class is involved in some kind of black money exchange. With corporates and government working in tandem for their own good, decision are made on the basis of black money paid compromising National Security. About 4 lakh crore goes out of India every year to about 77 tax havens making the Indian economy weaker. This is called flight of capital or drain of wealth. Only about 3% of Indian population is involved in black money laundering. Various studies have shown that black economy has grown over the years with stock markets, mining and oaring and now of recent the service industry is key contributors to black economy. Such huge amount of black money laundering can only be successful by a system. This system is theorised as a Triad that is formed chiefly by three things. Corrupt business class, corrupt bureaucracy and corrupt middle men working in nexus with criminals. Here the problem is not narrowly technical. Honesty is imperative. So then what can be done about this? The lecture pointed out some steps that can be taken to reduce black economy if not stop it....

Words: 298 - Pages: 2

Black Sox Scandal

...Robert Fiorelli Mrs. Neilson FYS 101-143 8 November 2013 The Black Sox Scandal and its Impact on Society Today Baseball as our american pastime has not only served as a viable source of entertainment, but has impacted our society into what it is today. Through the games clean, wholesome attitude, as well as its ability to draw a large community of people together, it has gotten us through historical tragedies and has also shed light on what is reality. One of the most prime examples of baseball being used as a template for the development of society and the game itself is the 1919 world series. In the beginning of the twentieth century, this particular world series turned into the darkest event in baseball history. Gamblers set up deals with the White Sox players to lose the world series on purpose, after being largely targeted as the clear favorites to win. Although this scandal was horrible for the game at the time, it set a standard for baseball and society that is still in effect today, which is why it is important to learn about what happened. It is nearing the end of the 1919 season, and the fans are in a frenzy about how good their White Sox have been playing. The owner of the White Sox, Charles Comiskey, stands tall over everyone, as his team is playing at such an untouchable level. Comiskey is an idol around the Chicago area, since he is running such a successful team. The only person he is not an idol to is his players. Comiskey had a notorious reputation...

Words: 923 - Pages: 4

Bae Project

...are the reports we need.” Caitlin glanced through the reports. They had similarities, but no two were the same. She thought she knew a way to create them quickly. “And finally …” He paused and sighed. “The Big Bosses went to a furniture industry conference and trade show last week. I hate it when this happens, because they always come back with big ideas that we can’t afford. This time, it’s dashboards and data visualization. They want executive-level displays that they can just glance at to get an idea of what’s going on, but they don’t want to spend any money. Excel can create charts and graphs, right? Just give them a few of those. Maybe a pie chart showing forecasts by product line. And what about a column chart showing forecasts by month and product line? That should be enough for now.” Caitlin knew what her uncle meant. The Big Bosses (better known as her grandparents) were notoriously cheap when it came to spending money on information technology. But an even bigger problem, as she knew from her MIS class, was that a lot of QFE’s business processes would have to be changed to collect and share data more effectively before an executive information system would be a realistic possibility. For now, it looked like she was headed back to Excel, to create some new forecast reports and charts. Getting Started The Microsoft Excel Part 4 and 5 units should be especially helpful in this assignment. If you need help with just one or two specific skills or concepts, see the......

Words: 1904 - Pages: 8

Scandal

...Lehman Brothers Scandal Corporate governance is defined as a system that control and direct a corporation (Shleifer 1997). Governance arrangement specifies dissemination of responsibilities and rights among different contributors in the corporation like financial managers, board of directors and shareholders. It also specifies procedures and rules of decision making in corporate affairs. Besides, corporate governance has plays its role to encourage organization to produce value through innovation as well as development process. Lehman Brothers would be further analyze and discussed in term of accounting scandal below. Lehman Brothers was the fourth largest United States investment bank when it collapsed and this has affected 25,000 employees worldwide. Thus, the significant factors that cause this scandal of corporate failure to be happened would be analysed below. Firstly, Lehman has high degree of excessive debt and leverage which mean ratio of total assets to shareholders’ equity in 2007. Furthermore, it has a huge mortgage securities portfolio that cause this corporate to becoming expose to declining market conditions (Chiquier 2004). Besides, it has the largest debt of $619m, which is the largest bankruptcy filling in history which surpasses Enron. Lehman’s shares decreases a huge amount of 48% concerning it would be the next firm to fail in its corporate governance as it is the second largest underwriter of mortgage-backed securities. Consequently, the declining......

Words: 572 - Pages: 3

Scandal

...run-on bank scenario. If Enron’s customers were willing to continue and use the company’s service, Enron would have been able to avoid bankruptcy. Enron might have had large debts and obligation but they had also large revenue, once Enron lost their credibility they also lost their customers, as they were not willing to continue to use their services. Andersen was a large and established firm, and losing a company like Enron, as their client would not had led to their end, but the company lost their credibility in the eyes of their clients. As a result of that, many clients decided to terminate their contracts Andersen. Following the scandal with Enron, Andersen lost a huge amount of customers, which led the to declare bankruptcy. There are different reasons why so many companies fired Andersen. A strong opinion is that once the scale of the scandal was known, the clients felt betrayed; it is sort of un-American to do such thing. Clients did not want to be involved with a company that causes so many people to loss their job, and causes much harm to many more. Lack of integrity was linked to both Enron and Andersen. Once a perceived lack of integrity is attached to a person, it is really hard to recover from that; it causes irreparable damage. If a lack of integrity is linked to a person, all of his actions will be looked over with suspicions. For example if a tax accountant is caught filling his own taxes unlawfully, any other tax return that he will work on will be......

Words: 2037 - Pages: 9

Black Money Trail

...This is so shocking.. ..If black money deposits was an Olympics event..  India would have won a gold medal hands down. The second best Russia has  4 times lesser deposit. U.S. is not even there in the counting in top  five! India has more money in Swiss banks  than all the other countries combined!  Recently, due to international pressure, the Swiss government agreed to  disclose the names of the account holders only if the respective  governments formally asked for it.. Indian government is not asking for  the details... ..no marks for guessing why?  We need to start a movement to pressurize the government to do so! This  is perhaps the only way, and a golden opportunity, to expose the high  and mighty and weed out corruption!  .  Please read on..and forward to all the honest Indians to..  like somebody is forwarding to you...  and build a ground-swell of support!for action !  .  Is India poor, who says? Ask the Swiss banks. With personal account  deposit bank of $1,500 billion in foreign reserve which have been  misappropriated, an amount 13 times larger than the country's foreign  debt, one needs to rethink if India is a poor country?  DISHONEST INDUSTRIALISTS, scandalous politicians and corrupt IAS, IRS,  IPS officers have deposited in foreign banks in their illegal personal  accounts a sum of about $1500 billion, which have been misappropriated  by them. This amount is about 13 times larger  than the country's foreign debt. With this......

Words: 11582 - Pages: 47

Accounting Scandals

...Research Study INTRODUCTION Accounting scandals in business firms arise with the disclosure of financial misdeeds by trusted executives of corporations. Examples of Accounting Fraud: • Merging short and long term debt into one amount to improve the perceived liquidity of the company • Failing to disclose risky investments or “creative” accounting practices • Over-recording sales revenue • Under-recording expenses (i.e. depreciation expense) Accounting fraud leads to many serious problem for everyone not only for the perpetrator. Accounting fraud causes problem in the market place and the economy. As a result in most cases, investors' loose large sum of money due to the misrepresentation of financial position and financial result of the company. Also, because of this, there is lack of trust in the market, accounting system, and in the company in which accounting fraud was committed from the investors. Employees in that company are at rest of losing their job because of the scandal. WHY DOES ACCOUNTING FRAUD OCCUR? Fraud are triggered by three elements; rationalization, perceived pressure, and perceived opportunities. Whether the fraud benefits the perpetrator directly, or indirectly, such as benefiting the perpetrator’s company, the three elements are always present. Rationalization- perpetrators find some sort of rationalization that makes their unethical behavior seem acceptable. Perceived Pressure- perpetrators are faced with some kind of......

Words: 7029 - Pages: 29

Scandals

...primary plant facilities at Canajoharie, New York, and headquarters near Philadelphia, was the second largest maker of baby foods in the United States, with roughly a 15 percent market share (comparable to Heinz’s market share), compared to Gerber’s 70 percent. From its origins as a meatpacker in 1891 to its modern status as a diversified food manufacturer, the company had built a reputation for pure, natural, high-quality products (Welles, 1988; Traub, 1988). In 1973, lawyer Frank Nicholas and a group of colleagues bought the baby foods division of Beech-Nut from Squibb Corporation, which had acquired the company in 1969. The new owners were undercapitalized and overloaded with debt from the beginning, and the company began to lose money. Beech-Nut signed an agreement in 1977 with a wholesaler run by Zeev Kaplansky, Interjuice Trading Corporation, to purchase apple juice concentrate. Interjuice was able to offer concentrate well below the market price (Welles, 1988), an opportunity that Beech-Nut was reluctant to turn down, given its financial troubles. By 1978, with apple juice products accounting for 30 percent of total sales, the Interjuice contract provided significant cost savings to a firm deeply in debt (Welles, 1988). Early savings from the contract amounted to about $250,000 a year on a $50 million operating budget. Later, the disparity between the Interjuice product and the market price of juice concentrate grew to 20-25 percent (Traub, 1988). Jerome......

Words: 3659 - Pages: 15

Aig Scandal

...On March 14, Maurice “Hank” Greenberg resigned his position as CEO of American International Group (AIG) amidst allegations of fraud and accounting manipulations at the world’s largest insurer. In an attempt to contain an escalating scandal, the company fired two more top executives on March 21, including the chief financial officer, Howard Smith. Though not a household name, AIG is the 10th-largest corporation in the United States. It has close ties to the political establishment, counting on its board of directors William Cohen, the former defense secretary in the Clinton administration, and Richard Holbrooke, the former US ambassador to the United Nations. Greenberg, who remains the chairman of the board of directors, has long been considered the titan of the insurance industry. In 1987, Ronald Reagan offered him the number-two position at the Central Intelligence Agency, presumably because of his international connections, particularly in Southeast Asia. He declined the nomination. Because of its enormous size and international reach, the investment firm Payne Webber wrote in 2000, “We have come to view AIG as almost the equivalent of a sovereign corporate nation, with its own diplomatic ties, economy, and head of state.” The evidence of fraud—including recent revelations as well as information that has come to light over the past year—suggests that AIG arranged deals to manipulate financial figures, both its own and those of other companies. It is yet another......

Words: 1899 - Pages: 8

Scandal

...asset of 556 billion, provides insurance service for more than 150 different countries and it has over 630, 000 employees over the world. Even though AIG is such a giant corporation, it has encountered financial problems in the early 2000s. Under financial pressure and a lack of internal control, AIG have committed frauds resulting in several scandals. One of the accounting scandals was disclosed during 2005 which involved a material mis-statement due to false transactions during 2000. This scandal set to prelude leading the downfall of AIG in 2008. In this paper, I will analyze the cause, the transactions and finally effects of the scandal. The Accounting Scandal The Players The CEO of AIG was Maurice “Hank” Greenberg. Greenberg joined AIG in 1962 and led AIG for thirty eight years until his retirement in March 2005. Greenberg was not only the CEO, but also the chairman of the board of AIG. AIG also have several subsidiaries, which include National Union Fire Insurance Company of Pittsburgh (NUFIC) and Hartford Steam Boiler Inspection (HSB). Their financial information are consolidated in AIG’s financial statements. The scandal also involves another corporation General Re Corporation. General Re is a subsidiary of Berkshire Hathaway, Inc., an investment group run by the billionaire Warren Buffet. General Re also has subsidiaries all over the world and together and it is one of the biggest reinsurance companies in the World. Reinsurance companies are entities......

Words: 281 - Pages: 2

Bae Case

...BAE, a well-reputed organization in building automated baggage handling systems was awarded a contract to design and build an integrated baggage handling system for the DIA. Unfortunately, many issues arose throughout the process of building the baggage handling system and the schedule of opening DIA was delayed several times. In August 1994, the City of Denver notified BAE of a $12,000/ day penalty for not finishing the baggage handling system by the original completion date, which was October 29, 1993. The City of Denver also demanded BAE pay for the $50 million conventional tug-and-card baggage system. The delays were due to many reasons. When BAE started the project, they were faced with fully defined project scopes, which proved to be a major planning error. There were many project management issues. The communication channel was not managed well between the stakeholders. As well, the City of Denver regulations had its fair share in delaying the project. The political and economic situations played a role in the problem. The political involvement in the DIA project started since day one. There was too much pressure to fast track this project due to mayoral races. In the mid-1980s, there was a free fall in the economy. Officials in the region looked at the DIA project as a mean to increase the economic activity in the region. BAE has few options on dealing with this problem. The first option is to maintain the status quo. The second option is to cancel the project,......

Words: 321 - Pages: 2

10 Pc / Lot Red Wooden Pencils Hb Pencil With Eraser Head Stationery For School' | O Físico (O Médico) Download Torrent Aventura / Drama / Histórico / Médico Idioma: Inglês / Português 2013 AVI / MKV Torrent DownloadVídeo 10 / Áudio 10Sinopse: A história se passa na Idade Média e mostra a história de Rob Cole (Payne), um médico que busca explicações científicas para doenças em um...

| Simon Maiden