Examining Corruption at the Highest Levels of Power in Chile and California

The Swiss Federal Criminal Court has convicted the directors of an oil exploration company of embezzling more than $1.8 billion from the Malaysian sovereign wealth fund 1Malaysia Development Berhad. The men, who hold Swiss-Saudi and Swiss-British citizenship, have been sentenced to seven and six years in prison respectively. They have also been ordered to repay most of the embezzled money back to the fund. The 1Malaysia Development Berhad was a major government investment project that gained international attention due to a corruption case around 2015.

One of Chile’s most influential lawyers, Luis Hermosilla, has been detained pending trial after being charged with money laundering and tax evasion. The case has scandalized the country’s corporate and political elite. This was brought to light by audio recordings last November, in which Hermosilla discussed bribes intended for officials from Chile’s two central financial regulators. The investigation has involved judges, politicians, and businesspeople in a country previously considered one of the least corrupt in the region.

California prosecutors have stated that corruption is on the rise in cities there, driven by a booming housing market. Moreover, single-party rule, less engaged voters, and a diminished news media have weakened the traditional checks on government. Over the past decade, 576 California public officials, including prominent members of the Los Angeles City Council, have been convicted of federal corruption charges, as per Justice Department reports.