The Fight Against Corruption Is at Stake in Milan

That’s how former French magistrate and renowned corruption fighter Eva Joly sees current developments in Italy. Two prosecutors there face prison for actions taken during the bribery trial of Italy’s largest company.  Writing in the Argentine opinion journal Clarín, Mme. Joly explains that the charges have nothing to do with their conduct and everything to do with a justice system where score-settling and the protection of Italian companies has supplanted the goal of truth and justice (Spanish original here; English translation here).

The saga begins with prosecutors Fabio de Pasquale and Sergio Spadaro opening an investigation into allegations oil giants Shell and Eni paid a $1.1 billion bribe for rights to Nigerian oil field OPL 245. With overwhelming evidence of wrongdoing on the public record (here, here), the two expected they would be trying a cut-and-dried case of foreign bribery.

Even before the trial began, however, it was clear that that was not to be. The first signs: revelations of ties between the chief trial judge and a lawyer close to ENI together with a surprising lack of interest by the Italian press in the largest bribery scandal on record. During the trial, a string of rulings highly favorable to the defense heightened suspicions the fix was in. But the acquittal still came as a surprise given the massive evidence presented coupled with the flimsy reasoning the court advanced to justify its verdict (here).

Adding to the surprise was the Italian media’s new-found interest in the case. Stories claiming the trial had been a waste of public money and questioning what Italian prosecutors were doing prosecuting Italian companies for bribing foreign officials began appearing in several outlets, the same ones where ENI was a major ad buyer.

Not to risk an appellate court would undo their handy work, those behind the trial’s outcome saw to it that the state counsel appointed to appeal the acquittal was one whose public comments on the case tracked the criticisms in the press (here). She then took the extraordinary step of refusing to pursue an appeal, meaning the trial court’s acquittal remains the final word.

Those responsible for quashing one case against ENI apparently feared there was always a risk some other pesky prosecutor didn’t get the message. Hence the orchestration of the conviction of de Pasquale and Spadaro for failing to disclose exculpatory information to the defense, a case with no precedent in Italian law based on a factual claim belied by the trial record.

If the convictions are not overturned on appeal, it’s not only the future of two talented magistrates that will suffer. As Mme. Joly says, the credibility of the Italian judicial system and the future of the fight against corruption, in Italy and far beyond, will suffer as well.

The Vatican’s Anticorruption Crackdown and the Rule of Law

One of Pope Francis’s top priorities, after his election in 2013, was cracking down on the Vatican’s financial corruption. In his first months as pope, Francis closed thousands of unauthorized accounts of the Vatican Bank, and in 2014, he created the Office of the Auditor General to monitor Vatican finances and spearhead anticorruption efforts. Perhaps the most high-profile consequence of the Pope’s crackdown was the two-and-a-half year investigation and trial of Cardinal Giovanni Angelo Becciu—the Pope’s former chief of staff—and nine others for financial corruption. While this so-called “Vatican trial of the century” included a range of alleged crimes, its locus involved the Holy See’s $380 million investment in a London real estate deal, which Vatican prosecutors alleged defrauded the Vatican to the tune of tens of millions. In December 2023, Cardinal Becciu was convicted of three counts of embezzlement and sentenced to five and a half years in prison. All but one of the other defendants were convicted on charges including embezzlement, corruption, and fraud, and several of them also received prison terms.

Although viewed by some as a triumph for the Pope’s efforts to clean up the Vatican, the investigation and prosecution of Becciu and his codefendants generated a firestorm of criticism. One legal expert affiliated with the defense described certain actions by Vatican authorities as “unacceptable abuses;” a Vatican canon lawyer likened the process to that of a “banana republic.” The most serious complaint—raised by the defense team, some legal commentators, and at least one cardinal—was that Pope Francis improperly used his power to “secretly” change the law four times via papal “rescripts” (roughly equivalent to executive orders) throughout the course of the investigation to give prosecutors “essentially, and a bit surreally, ‘carte blanche.’” These rescripts, which were never formally published (and were not produced to the defendants until the trial was underway), did four things:

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COP Co-Opted: How Corruption and Undue Influence Threaten Multilateral Climate Action

The ongoing COP 29 climate summit in Baku, Azerbaijan, has been living up to the anticorruption community’s worst fears. Risks of undue influence, corporate capture, and corruption arising from yet another authoritarian petrostate hosting a UN climate conference are rampant. (See reports by Global Witness / BBC and OCCRP.)

Tomorrow, November 15, David Szakonyi, Co-Founder of the Anticorruption Data Collective, Associate Professor, George Washington University, and GAB contributor (here) will present a recent report examining the risks and outlining what the UNFCCC, the UN process for curbing climate change, can do to protect future COPs from corporate capture.

 The report was produced by the Collective in partnership with Transparency International.

The virtual event will be held 10:00 – 11:15am EST and is hosted by the Central Asia Program at George Washington University. Along with Professor Szakonyi it features, Kate Watters, Emin Bayramli, and Karl Horberg. 

Register here

Event link